Business Wire | Oct 21, 2020 04:20PM EDT

Xilinx Reports Second Quarter Fiscal Year 2021 Results

Oct. 21, 2020

SAN JOSE, Calif.--(BUSINESS WIRE)--Oct. 21, 2020--Xilinx, Inc. (Nasdaq: XLNX), the leader in adaptive computing, today announced revenues of $767 million for the second quarter of fiscal year 2021.

GAAP net income for the quarter was $194 million, or $0.79 per diluted share. Non-GAAP net income was $203 million, or $0.82 per diluted share.

The Xilinx Board of Directors declared a quarterly cash dividend of $0.38 per outstanding share of common stock payable on December 2, 2020 to all stockholders of record at the close of business on November 11, 2020.

Additional second quarter of fiscal year 2021 comparisons are provided in the charts below.

Q2 Fiscal 2021 Financial Highlights

(In millions, except EPS)

GAAP



Q2 Q1 Q2

FY2021 FY2021 FY2020 Q-T-Q Y-T-Y

Net revenues* $767 $727 $833 5% -8%

Operating income $205 $176 $204 17% 1%

Net income $194 $94 $227 107% -15%

Diluted earnings per share $0.79 $0.38 $0.89 108% -11%



Non-GAAP



Q2 Q1 Q2

FY2021 FY2021 FY2020 Q-T-Q Y-T-Y

Net revenues* $767 $727 $833 5% -8%

Operating income $216 $187 $217 16% 0%

Net income $203 $160 $240 27% -15%

Diluted earnings per share $0.82 $0.65 $0.94 26% -13%



* No adjustment between GAAP and Non-GAAP

"We are pleased with our fiscal second quarter performance, which came in above the mid-point of guidance," said Xilinx president and CEO Victor Peng. "Our strong results were driven by another record quarter in our Data Center Group and Aerospace & Defense businesses, as well as improvement in our Automotive and Broadcast end markets. In addition, RFSoC sales ramped meaningfully with a tier-1 wireless OEM customer for 5G radio deployment in North America.

"Our strategic transformation to an adaptive platform company continues with healthy design win momentum during the quarter. Notable customer wins included a marquee SmartNIC design win with a U.S. tier-1 hyperscaler, as well as Zynq MPSoC design wins with Subaru and Continental. We also remain on track with our Versal program ramp with a leading wireless OEM later this year."

"Xilinx business continued to strengthen in fiscal Q2, buoyed by the economic recovery and increasing demand across our broad set of end markets," said Xilinx CFO Brice Hill. "This drove better than expected sequential revenue growth of 5% and GAAP operating income growth of 17%, resulting in $232 million of free cash flow and $93 million in capital return to stockholders with our quarterly dividend. Our financial position is strong and we remain confident as we prepare to expand the Zynq and Versal product lines and capture additional growth opportunities."

Net Revenues by Geography:

Percentages Growth Rates

Q2 Q1 Q2

FY2021 FY2021 FY2020 Q-T-Q Y-T-Y

North America 29% 26% 28% 20% -4%

Asia Pacific 48% 54% 51% -7% -13%

Europe 18% 13% 15% 47% 10%

Japan 5% 7% 6% -25% -23%



Net Revenues by End Market:

Percentages Growth Rates

Q2 Q1 Q2

FY2021 FY2021 FY2020 Q-T-Q Y-T-Y

A&D, Industrial and TME 44% 45% 36% 3% 11%

Automotive, Broadcast and Consumer 16% 12% 16% 36% -8%

Wired and Wireless Group 26% 32% 38% -13% -36%

Data Center Group 14% 12% 10% 23% 30%

Channel 0% -1% 0% NM NM



Net Revenues by Product:

Percentages Growth Rates

Q2 Q1 Q2

FY2021 FY2021 FY2020 Q-T-Q Y-T-Y

Advanced Products 70% 68% 74% 8% -13%

Core Products 30% 32% 26% -1% 6%

Products are classified as follows: Advanced Products: Alveo and related products, UltraScale+, UltraScale and 7-series products. Core Products: Virtex-6, Spartan-6, Virtex?5, CoolRunner?II, Virtex-4, Virtex-II, Spartan-3, Spartan-2, XC9500 products, configuration solutions, software & support/services.

Key Statistics:

(Dollars in Millions)

Q2 Q1 Q2

FY2021 FY2021 FY2020

Annual Return on Equity (%) (1) 24 26 37

Operating Cash Flow $248 $245 $224

Depreciation Expense (including software $30 $32 $22amortization)

Capital Expenditures (including software) $15 $15 $34

Free Cash Flow (2) $232 $230 $190

Inventory Days (internal) 114 114 104

Revenue Turns (%) 38 31 37

(1)Return on Equity = Trailing twelve months GAAP Net Income / average Stockholders' Equity

(2)Free Cash Flow = Operating Cash Flow - Capital Expenditures (including software)

Product and Financial Highlights - Fiscal Second Quarter 2021

* Advanced Products were 70% of total revenue, an 8% increase Q-T-Q and 13% decrease Y-T-Y. Zynq-based revenue grew 28% Q-T-Q and declined 20% Y-T-Y, and represented 22% of total revenue. Sequential strength was driven by improvement in the Automotive end market and 5G ramp in the Wireless end market. * Subaru selected Xilinx to power the new version of its vision-based advanced driver-assistance system (ADAS), EyeSight, which will provide advanced features including adaptive cruise control, lane-keep assist, and pre-collision braking. * Xilinx announced the T1 Telco Accelerator Card for O-RAN distributed units (O-DUs) and virtual baseband units (vBBUs) in 5G networks, which enables the O-DU to deliver greater 5G performance and services while reducing overall system power consumption and cost. * Xilinx and Continental announced that Xilinx will power Continental's new Advanced Radar Sensor (ARS) 540 with the Zynq(r) UltraScale+(tm) MPSoC platform, creating the automotive industry's first production-ready 4D imaging radar. * Xilinx announced a collaboration with Spline.AI and Amazon Web Services (AWS) that developed a X-ray classification deep-learning model and reference design kit that demonstrates high accuracy and low latency utilizing Vitis AI. This enables medical equipment makers and healthcare providers to rapidly deploy trained models for clinical and radiological inference applications, including for pneumonia and COVID-19 detection in mobile, portable and point-of-care devices.

Business Outlook - Fiscal Third Quarter 2021

The following guidance is based on current expectations and estimates and, as indicated, is presented on a GAAP and non-GAAP basis. This guidance is forward-looking and incorporates a 14-week quarter; actual results may differ materially as a result of, among other things, the important factors discussed and referred to at the end of this press release.

Return on Equity = Trailing twelve months GAAP Net Income / average(1) Stockholders' Equity

Free Cash Flow = Operating Cash Flow - Capital Expenditures (including(2) software)

Product and Financial Highlights - Fiscal Second Quarter 2021

* Advanced Products were 70% of total revenue, an 8% increase Q-T-Q and 13% decrease Y-T-Y. Zynq-based revenue grew 28% Q-T-Q and declined 20% Y-T-Y, and represented 22% of total revenue. Sequential strength was driven by improvement in the Automotive end market and 5G ramp in the Wireless end market. * Subaru selected Xilinx to power the new version of its vision-based advanced driver-assistance system (ADAS), EyeSight, which will provide advanced features including adaptive cruise control, lane-keep assist, and pre-collision braking. * Xilinx announced the T1 Telco Accelerator Card for O-RAN distributed units (O-DUs) and virtual baseband units (vBBUs) in 5G networks, which enables the O-DU to deliver greater 5G performance and services while reducing overall system power consumption and cost. * Xilinx and Continental announced that Xilinx will power Continental's new Advanced Radar Sensor (ARS) 540 with the Zynq(r) UltraScale+(tm) MPSoC platform, creating the automotive industry's first production-ready 4D imaging radar. * Xilinx announced a collaboration with Spline.AI and Amazon Web Services (AWS) that developed a X-ray classification deep-learning model and reference design kit that demonstrates high accuracy and low latency utilizing Vitis AI. This enables medical equipment makers and healthcare providers to rapidly deploy trained models for clinical and radiological inference applications, including for pneumonia and COVID-19 detection in mobile, portable and point-of-care devices.

Business Outlook - Fiscal Third Quarter 2021

The following guidance is based on current expectations and estimates and, as indicated, is presented on a GAAP and non-GAAP basis. This guidance is forward-looking and incorporates a 14-week quarter; actual results may differ materially as a result of, among other things, the important factors discussed and referred to at the end of this press release.

Non-GAAP

GAAP Adjustments Non-GAAP

Revenues $750M - $800M - $750M - $800M

Gross Margin 67.5% - 70.5% ~1% (1) 68.5% - 71.5%

Operating Expenses $338M - $352M ~$(5M) (2) $333M - $347M

Other Expense $12M - $16M - $12M - $16M

Tax Rate 5% - 8% ~1% (3) 6% - 9%

Notes regarding Non-GAAP Adjustments:

(1)

Amortization of acquisition-related intangibles

(2)

M&A related expenses and amortization of acquisition-related intangibles

(3)

Income tax effect of non-GAAP adjustments

Conference Call

A conference call will be held today at 2:00 p.m. Pacific Time to discuss the September quarter financial results and management's outlook for the December quarter. The webcast and subsequent replay will be available in the investor relations section of the Company's web site at investor.xilinx.com. A telephonic replay of the call may be accessed later in the day by calling (800) 585-8367 and referencing confirmation code 7964802. The telephonic replay will be available for two weeks following the live call.

Non-GAAP Financial Information

Fiscal second quarter 2021 results and business outlook for the December quarter include financial measures which are not determined in accordance with the United States generally accepted accounting principles (GAAP), as indicated. Non-GAAP measures should not be considered as a substitute for, or superior to, financial measures determined in accordance with GAAP. The presentation of non-GAAP financial measures has been reconciled, in each case, to the most directly-comparable GAAP measure, as indicated in the accompanying tables. The Company's calculation of such non-GAAP measures may not be comparable to similarly-titled measures used by other companies.

Management uses the non-GAAP financial measures disclosed herein, other than free cash flow, to evaluate the Company's financial results from continuing operations (excluding the impact of acquisitions) and compare to operating performance in past periods. Similarly, Management believes presentation of these non-GAAP measures is useful to investors because it enables investors and analysts to evaluate operating expenses of the Company's core business, excluding the impact of non-core business expenses, such as acquisition-related amortization and non-recurring items, as described below:

M&A related expenses These expenses mainly consist of legal and consulting fees associated with acquisition activities. The Company believes these costs do not reflect its current operating performance. Consequently, the non-GAAP adjustments exclude these charges to facilitate an evaluation of the Company's current operating performance and comparisons to its past operating performance.

Amortization of acquisition-related intangibles Amortization of acquisition-related intangible assets consists of amortization of intangible assets such as developed technology acquired in connection with business combinations. The non-GAAP adjustments exclude these charges to facilitate an evaluation of the Company's current operating performance and comparisons to its past operating performance.

Income taxes: The Company excludes the income tax effects of non-GAAP adjustments reflected in operating expenses and other income, as detailed above. It also excludes other significant tax effects of post-acquisition tax integration transactions. The Company believes excluding post-acquisition tax integration items will facilitate a comparable evaluation of its current performance to its past performance. The third quarter of fiscal 2021 outlook does not reflect other tax related items which the Company is not able to predict without unreasonable efforts due to their inherent uncertainty.

In addition, free cash flow, which is cash flow from operations adjusted to exclude additions to software, property, plant, and equipment, is used by management when assessing the Company's sources of liquidity, capital resources, and quality of earnings. The Company believes that this non-GAAP financial measure is helpful in understanding the Company's capital requirements and provides an additional means to evaluate the cash flow trends of the Company's business.

Forward-Looking Statements

This release contains forward-looking statements and projections. Forward-looking statements and projections can often be identified by the use of forward-looking words such as "expect," "believe," "may," "will," "could," "anticipate," "estimate," "continue," "plan," "intend," "project" or other similar expressions. Statements that refer to or are based on projections, uncertain events or assumptions also identify forward-looking statements. Such forward-looking statements include, but are not limited to, statements related to the semiconductor market, the growth and acceptance of our products, expected revenue growth, the demand and growth in the markets we serve, opportunity for expansion into new markets, and our expectations regarding our business outlook for the December quarter. Undue reliance should not be placed on such forward-looking statements and projections, which speak only as of the date they are made. We undertake no obligation to update such forward-looking statements. Actual events and results may differ materially from those in the forward-looking statements and are subject to risks and uncertainties including, among others, the impact of the ongoing COVID-19 pandemic and related mitigation measures (which, in addition to presenting its own risks and uncertainties, may also heighten the other risks and uncertainties faced by our business and decrease our visibility into all aspects of our business), customer acceptance of our new products, changing global economic conditions, our dependence on certain customers, trade and export restrictions, the condition and performance of our customers and the end markets in which they participate, our ability to forecast end customer demand, a high dependence on turns business, more customer volume discounts than expected, greater product mix changes than anticipated, fluctuations in manufacturing yields, our ability to deliver product in a timely manner, our ability to successfully manage production at multiple foundries, our reliance on third parties (including distributors), variability in wafer pricing, costs and liabilities associated with current and future litigation, our ability to generate cost and operating expense savings in an efficient and timely manner, our ability to realize the goals contemplated by our acquisitions and strategic investments, the impact of current and future legislative and regulatory changes, the impact of new accounting pronouncements and tax laws, including the U.S. Tax Cuts and Jobs Act, and interpretations thereof, and other risk factors described in our most recent Forms 10-Q and 10-K.

About Xilinx

Xilinx, Inc. develops highly flexible and adaptive computing platforms that enable rapid innovation across a variety of technologies - from the cloud, to the edge, to the endpoint. Xilinx is the inventor of the FPGA and Adaptive SoCs (including our Adaptive Compute Acceleration Platform, or ACAP), designed to deliver the most dynamic computing technology in the industry. We collaborate with our customers to create scalable, differentiated and intelligent solutions that enable the adaptable, intelligent and connected world of the future. For more information, visit xilinx.com.

Xilinx, the Xilinx logo, Alveo, Artix, Kintex, Spartan, Versal, Vitis, Virtex, Vivado, Zynq, and other designated brands included herein are trademarks of Xilinx in the United States and/or other countries. All other trademarks are the property of their respective owners.

XLNX-F

Notes regarding Non-GAAP Adjustments:

(1) Amortization of acquisition-related intangibles

(2) M&A related expenses and amortization of acquisition-related intangibles

(3) Income tax effect of non-GAAP adjustments

Conference Call

A conference call will be held today at 2:00 p.m. Pacific Time to discuss the September quarter financial results and management's outlook for the December quarter. The webcast and subsequent replay will be available in the investor relations section of the Company's web site at investor.xilinx.com. A telephonic replay of the call may be accessed later in the day by calling (800) 585-8367 and referencing confirmation code 7964802. The telephonic replay will be available for two weeks following the live call.

Non-GAAP Financial Information

Fiscal second quarter 2021 results and business outlook for the December quarter include financial measures which are not determined in accordance with the United States generally accepted accounting principles (GAAP), as indicated. Non-GAAP measures should not be considered as a substitute for, or superior to, financial measures determined in accordance with GAAP. The presentation of non-GAAP financial measures has been reconciled, in each case, to the most directly-comparable GAAP measure, as indicated in the accompanying tables. The Company's calculation of such non-GAAP measures may not be comparable to similarly-titled measures used by other companies.

Management uses the non-GAAP financial measures disclosed herein, other than free cash flow, to evaluate the Company's financial results from continuing operations (excluding the impact of acquisitions) and compare to operating performance in past periods. Similarly, Management believes presentation of these non-GAAP measures is useful to investors because it enables investors and analysts to evaluate operating expenses of the Company's core business, excluding the impact of non-core business expenses, such as acquisition-related amortization and non-recurring items, as described below:

M&A related expenses These expenses mainly consist of legal and consulting fees associated with acquisition activities. The Company believes these costs do not reflect its current operating performance. Consequently, the non-GAAP adjustments exclude these charges to facilitate an evaluation of the Company's current operating performance and comparisons to its past operating performance.

Amortization of acquisition-related intangibles Amortization of acquisition-related intangible assets consists of amortization of intangible assets such as developed technology acquired in connection with business combinations. The non-GAAP adjustments exclude these charges to facilitate an evaluation of the Company's current operating performance and comparisons to its past operating performance.

Income taxes: The Company excludes the income tax effects of non-GAAP adjustments reflected in operating expenses and other income, as detailed above. It also excludes other significant tax effects of post-acquisition tax integration transactions. The Company believes excluding post-acquisition tax integration items will facilitate a comparable evaluation of its current performance to its past performance. The third quarter of fiscal 2021 outlook does not reflect other tax related items which the Company is not able to predict without unreasonable efforts due to their inherent uncertainty.

In addition, free cash flow, which is cash flow from operations adjusted to exclude additions to software, property, plant, and equipment, is used by management when assessing the Company's sources of liquidity, capital resources, and quality of earnings. The Company believes that this non-GAAP financial measure is helpful in understanding the Company's capital requirements and provides an additional means to evaluate the cash flow trends of the Company's business.

Forward-Looking Statements

This release contains forward-looking statements and projections. Forward-looking statements and projections can often be identified by the use of forward-looking words such as "expect," "believe," "may," "will," "could," "anticipate," "estimate," "continue," "plan," "intend," "project" or other similar expressions. Statements that refer to or are based on projections, uncertain events or assumptions also identify forward-looking statements. Such forward-looking statements include, but are not limited to, statements related to the semiconductor market, the growth and acceptance of our products, expected revenue growth, the demand and growth in the markets we serve, opportunity for expansion into new markets, and our expectations regarding our business outlook for the December quarter. Undue reliance should not be placed on such forward-looking statements and projections, which speak only as of the date they are made. We undertake no obligation to update such forward-looking statements. Actual events and results may differ materially from those in the forward-looking statements and are subject to risks and uncertainties including, among others, the impact of the ongoing COVID-19 pandemic and related mitigation measures (which, in addition to presenting its own risks and uncertainties, may also heighten the other risks and uncertainties faced by our business and decrease our visibility into all aspects of our business), customer acceptance of our new products, changing global economic conditions, our dependence on certain customers, trade and export restrictions, the condition and performance of our customers and the end markets in which they participate, our ability to forecast end customer demand, a high dependence on turns business, more customer volume discounts than expected, greater product mix changes than anticipated, fluctuations in manufacturing yields, our ability to deliver product in a timely manner, our ability to successfully manage production at multiple foundries, our reliance on third parties (including distributors), variability in wafer pricing, costs and liabilities associated with current and future litigation, our ability to generate cost and operating expense savings in an efficient and timely manner, our ability to realize the goals contemplated by our acquisitions and strategic investments, the impact of current and future legislative and regulatory changes, the impact of new accounting pronouncements and tax laws, including the U.S. Tax Cuts and Jobs Act, and interpretations thereof, and other risk factors described in our most recent Forms 10-Q and 10-K.

About Xilinx

Xilinx, Inc. develops highly flexible and adaptive computing platforms that enable rapid innovation across a variety of technologies - from the cloud, to the edge, to the endpoint. Xilinx is the inventor of the FPGA and Adaptive SoCs (including our Adaptive Compute Acceleration Platform, or ACAP), designed to deliver the most dynamic computing technology in the industry. We collaborate with our customers to create scalable, differentiated and intelligent solutions that enable the adaptable, intelligent and connected world of the future. For more information, visit xilinx.com.

Xilinx, the Xilinx logo, Alveo, Artix, Kintex, Spartan, Versal, Vitis, Virtex, Vivado, Zynq, and other designated brands included herein are trademarks of Xilinx in the United States and/or other countries. All other trademarks are the property of their respective owners.

XLNX-F

XILINX, INC.CONSOLIDATED STATEMENTS OF INCOME(Unaudited)(In thousands, except per share amounts) Three Months Ended Six Months Ended September June 27, September September 26, September 26, 2020 28, 2020 28, 2020 2019 2019Net revenues $ 766,535 $ 726,673 $ 833,366 $ 1,493,208 $ 1,682,998

Cost of revenues:Cost of products 218,120 226,103 287,372 444,223 570,872soldAmortization of 6,696 6,697 5,734 13,393 9,003acquisition-relatedintangiblesTotal cost of 224,816 232,800 293,106 457,616 579,875revenuesGross margin 541,719 493,873 540,260 1,035,592 1,103,123

Operating expenses:Research and 219,647 210,113 222,979 429,760 427,079developmentSelling, general 113,793 105,383 111,596 219,176 219,021and administrativeAmortization of 2,862 2,862 2,169 5,724 2,569acquisition-relatedintangiblesTotal operating 336,302 318,358 336,744 654,660 648,669expensesOperating income 205,417 175,515 203,516 380,932 454,454

Interest and other (10,771 ) (12,153 ) 12,329 (22,924 ) 23,941income (expense),netIncome before 194,646 163,362 215,845 358,008 478,395income taxesProvision (benefit) 830 69,526 (11,148 ) 70,356 9,943for income taxesNet income $ 193,816 $ 93,836 $ 226,993 $ 287,652 $ 468,452

Net income percommon share:Basic $ 0.79 $ 0.39 $ 0.90 $ 1.18 $ 1.85

Diluted $ 0.79 $ 0.38 $ 0.89 $ 1.17 $ 1.83

Cash dividends per $ 0.38 $ 0.38 $ 0.37 $ 0.76 $ 0.74common shareShares used in pershare calculations:Basic 244,837 243,180 252,399 243,602 252,728

Diluted 246,763 245,543 255,269 245,847 256,509

XILINX, INC.CONDENSED CONSOLIDATED BALANCE SHEETS(In thousands)September 26,2020March 28,2020*(unaudited)ASSETSCurrent assets:Cash, cash equivalents and short-term investments$

3,095,936

$

2,267,216

Accounts receivable, net362,497

273,028

Inventories282,048

304,340

Other current assets73,034

64,557

Total current assets3,813,515

2,909,141

Net property, plant and equipment357,480

372,574

Other assets1,404,936

1,411,619

Total Assets$

5,575,931

$

4,693,334

LIABILITIES AND STOCKHOLDERS' EQUITYCurrent liabilities:Accounts payable and accrued liabilities$

590,909

$

586,421

Current portion of long-term debt499,662

499,260

Total current liabilities1,090,571

1,085,681

Long-term debt1,492,066

747,110

Other long-term liabilities540,457

545,494

Stockholders' equity2,452,837

2,315,049

Total Liabilities and Stockholders' Equity$

5,575,931

$

4,693,334

* Fiscal 2020 balances are derived from audited financial statements.XILINX, INC.CONDENSED CONSOLIDATED BALANCE SHEETS(In thousands) September 26, March 28, 2020 2020* (unaudited)ASSETSCurrent assets:Cash, cash equivalents and short-term investments $ 3,095,936 $ 2,267,216

Accounts receivable, net 362,497 273,028

Inventories 282,048 304,340

Other current assets 73,034 64,557

Total current assets 3,813,515 2,909,141

Net property, plant and equipment 357,480 372,574

Other assets 1,404,936 1,411,619

Total Assets $ 5,575,931 $ 4,693,334

LIABILITIES AND STOCKHOLDERS' EQUITYCurrent liabilities:Accounts payable and accrued liabilities $ 590,909 $ 586,421

Current portion of long-term debt 499,662 499,260

Total current liabilities 1,090,571 1,085,681

Long-term debt 1,492,066 747,110

Other long-term liabilities 540,457 545,494

Stockholders' equity 2,452,837 2,315,049

Total Liabilities and Stockholders' Equity $ 5,575,931 $ 4,693,334

* Fiscal 2020 balances are derived from audited financial statements.XILINX, INC.SUPPLEMENTAL FINANCIAL INFORMATION(Unaudited)(In thousands)Three Months EndedSix Months EndedSeptember 26,2020June 27,2020September 28,2019September 26,2020September 28,2019SELECTED CASH FLOW INFORMATION:Depreciation and amortization of software$

30,249

$

31,749

$

22,438

$

61,998

$

42,551

Amortization - others15,316

15,059

12,965

30,375

22,050

Stock-based compensation58,439

50,383

49,822

108,822

92,575

Net cash provided by operating activities247,583

245,471

223,694

493,054

521,910

Purchases of property, plant and equipment and software15,331

15,461

33,641

30,792

62,842

Payment of dividends to stockholders93,105

92,414

93,484

185,519

187,445

Repurchases of common stock-

53,682

32,250

53,682

477,245

Taxes paid related to net share settlement of restricted stock units, net of proceeds from issuance of common stock30,072

3,239

47,857

33,311

51,976

STOCK-BASED COMPENSATION INCLUDED IN:Cost of revenues$

2,963

$

2,721

$

2,812

$

5,684

$

5,425

Research and development36,110

30,369

29,702

66,479

54,576

Selling, general and administrative19,366

17,293

17,308

36,659

32,574

XILINX, INC.SUPPLEMENTAL FINANCIALINFORMATION(Unaudited)(In thousands) Three Months Ended Six Months Ended September June 27, September September September 26, 2020 28, 26, 28, 2020 2019 2020 2019SELECTED CASH FLOWINFORMATION:Depreciation and $ 30,249 $ 31,749 $ 22,438 $ 61,998 $ 42,551amortization of softwareAmortization - others 15,316 15,059 12,965 30,375 22,050

Stock-based compensation 58,439 50,383 49,822 108,822 92,575

Net cash provided by 247,583 245,471 223,694 493,054 521,910operating activitiesPurchases of property, 15,331 15,461 33,641 30,792 62,842plant and equipment andsoftwarePayment of dividends to 93,105 92,414 93,484 185,519 187,445stockholdersRepurchases of common - 53,682 32,250 53,682 477,245stockTaxes paid related to netshare settlement of 30,072 3,239 47,857 33,311 51,976restricted stock units,net of proceeds fromissuance of common stock STOCK-BASED COMPENSATIONINCLUDED IN:Cost of revenues $ 2,963 $ 2,721 $ 2,812 $ 5,684 $ 5,425

Research and development 36,110 30,369 29,702 66,479 54,576

Selling, general and 19,366 17,293 17,308 36,659 32,574administrative XILINX, INC.RECONCILIATIONS OF GAAP ACTUALS TO NON-GAAP ACTUALS(Unaudited)(In thousands, except per share amounts)Three Months EndedSix Months EndedSeptember 26, 2020

June 27, 2020

September 28, 2019

September 26, 2020

September 28, 2019

GAAP gross margin$

541,719

$

493,873

$

540,260

$

1,035,592

$

1,103,123

Inventory valuation adjustment-

-

1,741

-

1,741

Amortization of acquisition-related intangibles6,696

6,697

5,734

13,393

9,003

Non-GAAP gross margin$

548,415

$

500,570

$

547,735

$

1,048,985

$

1,113,867

GAAP operating income$

205,417

$

175,515

$

203,516

$

380,932

$

454,454

Inventory valuation adjustment-

-

1,741

-

1,741

Amortization of acquisition-related intangibles9,558

9,559

7,903

19,117

11,572

Acquisition-related costs1,506

1,563

3,979

3,069

9,350

Non-GAAP operating income$

216,481

$

186,637

$

217,139

$

403,118

$

477,117

GAAP net income$

193,816

$

93,836

$

226,993

$

287,652

$

468,452

Inventory valuation adjustment-

-

1,741

-

1,741

Amortization of acquisition-related intangibles9,558

9,559

7,903

19,117

11,572

Acquisition-related costs1,506

1,563

3,979

3,069

9,350

Income tax effect of tax-related items-

56,801

-

56,801

-

Income tax effect of non-GAAP adjustments(1,470

)

(1,590

)

(536

)

(3,060

)

(1,959

)

Non-GAAP net income$

203,410

$

160,169

$

240,080

$

363,579

$

489,156

GAAP diluted EPS$

0.79

$

0.38

$

0.89

$

1.17

$

1.83

Inventory valuation adjustment-

-

-

-

-

Amortization of acquisition-related intangibles0.03

0.04

0.03

0.08

0.05

Acquisition-related costs0.01

0.01

0.02

0.01

0.04

Income tax effect of tax-related items-

0.23

-

0.23

-

Income tax effect of non-GAAP adjustments(0.01

)

(0.01

)

-

(0.01

)

(0.01

)

Non-GAAP diluted EPS$

0.82

$

0.65

$

0.94

$

1.48

$

1.91

GAAP cash flow from operations$

247,583

$

245,471

$

223,694

$

493,054

$

521,910

Capital expenditures (including software)(15,331

)

(15,461

)

(33,641

)

(30,792

)

(62,842

)

Free cash flow$

232,252

$

230,010

$

190,053

$

462,262

$

459,068

Source: Xilinx Newsroom Category: Corporate Announcements

View source version on businesswire.com: https://www.businesswire.com/news/home/20201021005883/en/

CONTACT: Investor Relations Contact: Suresh Bhaskaran Xilinx, Inc. (408) 879-4784 ir@xilinx.com