Business Wire | May 4, 2021 04:20PM EDT

Xilinx Reports Fiscal Fourth Quarter and Fiscal Year 2021 Results

May 04, 2021

SAN JOSE, Calif.--(BUSINESS WIRE)--May 04, 2021--Xilinx, Inc. (Nasdaq: XLNX), the leader in adaptive computing, today announced record revenues of $851 million for the fiscal fourth quarter, up 6% over the previous quarter and an increase of 13% year over year. Fiscal 2021 revenues were $3.15 billion, largely flat from the prior fiscal year.

GAAP net income for the fiscal fourth quarter was $188 million, or $0.75 per diluted share. Non-GAAP net income for the quarter was $204 million, or $0.82 per diluted share. GAAP net income for fiscal year 2021 was $647 million, or $2.62 per diluted share. Non-GAAP net income for fiscal year 2021 was $762 million, or $3.08 per diluted share.

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

Q4 Fiscal 2021 Financial Highlights

(In millions, except EPS)

GAAP



Q4 Q3 Q4

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

Net revenues* $851 $803 $756 6% 13%

Gross margin $570 $547 $528 4% 8%

Operating income $200 $172 $178 16% 12%

Net income $188 $171 $162 10% 16%

Diluted earnings per share $0.75 $0.69 $0.65 9% 15%



Non-GAAP



Q4 Q3 Q4

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

Net revenues* $851 $803 $756 6% 13%

Gross margin $579 $554 $535 5% 8%

Operating income $228 $201 $218 13% 4%

Net income $204 $194 $193 5% 5%

Diluted earnings per share $0.82 $0.78 $0.78 5% 5%



* No adjustment between GAAP and Non-GAAP

Note: Q4 FY2021 consisted of 13 weeks; Q3 FY2021 consisted of 14 weeks; Q4FY2020 consisted of 13 weeks

"We are pleased with our fourth quarter results as we delivered record revenues and double-digit year-over-year growth in the midst of a challenging supply chain environment," said Victor Peng, Xilinx president and CEO. "Xilinx saw further improvement in demand across a majority of our diversified end markets with key strength in our Wireless, Data Center and Automotive markets, the pillars of our growth strategy. Our teams have executed well and we remain focused on continuing to meet customers' critical needs.

"Our investment and strong execution toward our platform strategy are paying off as we are now in full production shipments of our 7nm Versal series, which is the culmination of a multi-year effort and a long-term growth driver for Xilinx. We also introduced new platforms for edge compute including Kria, an adaptive system-on-module (SOM) platform, as well as a cost-optimized UltraScale+ portfolio, to enable and accelerate innovation and AI at the edge."

"Record Q4 revenues were driven by strength in Wireless and Data Center markets, as well as record quarters for our Industrial and Automotive end markets, which resulted in 6% sequential and 13% year-over-year growth," said Brice Hill, Xilinx CFO. "Advanced Products also grew 6% sequentially and represented 73% of total revenue. Top line performance drove fourth quarter free cash flows of $227 million, or 27% of revenue, reflecting our efficient financial model."

Net Revenues by Geography:

Percentages Growth Rates

Q4 Q3 Q4

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

North America 27% 30% 37% -1% -16%

Asia Pacific 49% 44% 37% 16% 49%

Europe 16% 19% 18% -12% -3%

Japan 8% 7% 8% 18% 13%



Net Revenues by End Market:

Percentages Growth Rates

Q4 Q3 Q4

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

A&D, Industrial and TME 41% 45% 50% -2% -6%

Automotive, Broadcast and Consumer 18% 19% 16% -1% 30%

Wired and Wireless Group 31% 29% 24% 13% 43%

Data Center Group 9% 7% 10% 28% -5%

Channel 1% 0% 0% NM NM



Net Revenues by Product:

Percentages Growth Rates

Q4 Q3 Q4

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

Advanced Products 73% 72% 70% 6% 16%

Core Products 27% 28% 30% 6% 3%

Products are classified as follows: Advanced Products: Alveo and related products, Versal, 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)

Q4 Q3 Q4

FY2021 FY2021 FY2020



Operating Cash Flow $240 $360 $345

Depreciation Expense (including software amortization) $30 $31 $29

Capital Expenditures (including software) $13 $6 $32

Free Cash Flow (1) $227 $354 $313

Inventory Days (internal) 101 115 122

Revenue Turns (%) 29 34 46

(1) Free Cash Flow = Operating Cash Flow - Capital Expenditures (includingsoftware)

Product and Financial Highlights - Fiscal Year 2021

* Data Center Group (DCG) delivered 20% annual revenue growth over fiscal 2020 driven by continuing adoption with hyperscale customers across compute, networking and storage workloads. Xilinx maintains strong engagements with hyperscalers to deliver solutions for AI compute, video acceleration, composable networking and computational storage. We also introduced new products and solutions to power the data center and the edge in fiscal 2021 including new Alveo SmartNICs, real-time server appliances for ultra-high-density video transcoding, the Samsung SmartSSD(r) Computational Storage Drive, the industry's first adaptable computational storage platform, and the Xilinx App Store * Wired and Wireless Group (WWG) revenues were down 14% compared to fiscal 2020 reflecting China trade-related impacts as well as slowdowns related to the COVID-19 pandemic. The Wireless end market recovered in the second half of fiscal 2021 as 5G deployments accelerated in multiple regions across a variety of technologies. Versal is now in production with a Tier-1 OEM to enable beamforming technology in massive MIMO applications, and continues to gain momentum with design wins with multiple OEMs. RFSoC is in deployment with multiple customers and Xilinx has a strong design win pipeline with RFSoC DFE. Recent announcements with Mavenir and Fujitsu, as well as for the T1 Telco Accelerator Card, position Xilinx to support the emerging growth opportunities in O-RAN * Aerospace & Defense, Industrial and Test & Measurement (AIT) revenue grew 6% compared to fiscal 2020, driven by strength in Industrial, Scientific & Medical (ISM) and Test, Measurement & Emulation (TME) end markets. Zynq product penetration into applications that have traditionally used ASSPs and ASICs have provided significant expansion of available market opportunities * Automotive, Broadcast and Consumer (ABC) markets delivered 1% annual growth despite material impacts from the COVID-19 pandemic. The Automotive end market recovered strongly in the second half of fiscal 2021 with consecutive quarters of record revenue in Q3 and Q4 despite ongoing supply chain challenges. Xilinx platforms continue to be adopted by leading global OEMs and manufacturers for ADAS applications, including Continental for a 4-D imaging radar and Subaru to power its new-generation EyeSight ADAS system * Xilinx introduced new solutions for the edge, including the new Kria adaptive system-on-module (SOM) platform for accelerating AI applications at the edge, and a cost-optimized UltraScale+ portfolio, for ultra-compact, high-performance edge compute * Strong adoption momentum continues for the Vitis software development platform with over 76,000 downloads and another 23,000 estimated downloads for Vitis AI development environment for accelerating AI inference. In addition, over 20,000 developers have been trained on Xilinx software tools, and more than 1,000 ISV partners have published over 200 applications across all Xilinx powered adaptive platforms including cloud, Alveo and SmartSSD

Commentary on AMD Transaction

As announced on October 27, 2020, Advanced Micro Devices, Inc. (AMD) intends to acquire Xilinx in an all-stock transaction valued at $35 billion. Due to the pending acquisition, Xilinx will not hold an earnings conference call or provide forward-looking guidance. Also, pursuant to the terms of the Merger Agreement between the Company and AMD, Xilinx has suspended its quarterly dividend as well as its open market stock repurchase program.

Non-GAAP Financial Information

Fiscal year 2021 and fourth quarter 2021 results 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. Xilinx's (the Company) 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, advisory and consulting fees associated with acquisition activities, and also include fees and retention compensation related to the Company's acquisition by AMD. The Company believes these costs do not reflect its current 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.

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, which 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 uncertain events or assumptions also identify forward-looking statements. Such forward-looking statements include, but are not limited to, statements related to our proposed acquisition by AMD, the semiconductor market, the growth and acceptance of our products, expected revenue growth, the demand and growth in the markets we serve, and opportunity for expansion into new markets. Undue reliance should not be placed on such forward-looking statements, 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); closing of the proposed transaction with AMD on anticipated timing (including the risk that the conditions to the transaction are not satisfied on a timely basis or at all or the failure of the transaction to close for any other reason) and terms (including obtaining the anticipated tax treatment, regulatory approvals, required consents or authorizations); unanticipated difficulties or expenditures relating to the transaction; the response of business partners and retention as a result of the announcement and pendency of the transaction; the diversion of management time on transaction-related matters; 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 (including litigation relating to the proposed transaction with AMD); 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 and subsequent filings with the U.S. Securities and Exchange Commission.

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, Kria 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.

XILINX, INC.CONSOLIDATED STATEMENTS OF INCOME(Unaudited)(In thousands, except per share amounts) Three Months Ended Twelve Months Ended April 3, January March 28, April 3, 2021 March 28, 2021 2, 2021 2020 2020

Net revenues $ 850,987 $ 803,404 $ 756,169 $ 3,147,599 $ 3,162,666

Cost of revenues:Cost of products sold 272,851 249,529 221,037 966,604 1,025,234

Amortization of 7,733 6,875 6,697 28,000 22,396acquisition-relatedintangiblesTotal cost of 280,584 256,404 227,734 994,604 1,047,630revenuesGross margin 570,403 547,000 528,435 2,152,995 2,115,036

Operating expenses:Research and 239,863 235,018 214,968 904,639 853,589developmentSelling, general and 127,872 136,701 103,675 483,749 432,308administrativeAmortization of 2,887 2,856 3,401 11,468 8,889acquisition-relatedintangiblesRestructuring charges - - 28,362 - 28,362

Total operating 370,622 374,575 350,406 1,399,856 1,323,148expensesOperating income 199,781 172,425 178,029 753,139 791,888

Interest and other (4,245 ) 3,709 11,717 (23,461 ) 42,096income (expense), netIncome before income 195,536 176,134 189,746 729,678 833,984taxesProvision for income 7,652 5,162 27,489 83,170 41,263taxesNet income $ 187,884 $ 170,972 $ 162,257 $ 646,508 $ 792,721

Net income per commonshare:Basic $ 0.76 $ 0.70 $ 0.66 $ 2.65 $ 3.15

Diluted $ 0.75 $ 0.69 $ 0.65 $ 2.62 $ 3.11

Cash dividends per $ - $ 0.38 $ 0.37 $ 1.14 $ 1.48common shareShares used in pershare calculations:Basic 245,774 245,145 247,166 244,257 251,732

Diluted 249,030 248,148 249,320 247,229 254,943

XILINX, INC.CONDENSED CONSOLIDATED BALANCE SHEETS(In thousands)April 3, 2021

March 28, 2020*

(unaudited)ASSETSCurrent assets:Cash, cash equivalents and short-term investments$

3,078,899

$

2,267,216

Accounts receivable, net285,214

273,028

Inventories311,085

304,340

Other current assets71,064

64,557

Total current assets3,746,262

2,909,141

Net property, plant and equipment345,023

372,574

Other assets1,427,916

1,411,619

Total assets$

5,519,201

$

4,693,334

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

624,555

$

586,421

Current portion of long-term debt-

499,260

Total current liabilities624,555

1,085,681

Long-term debt1,492,688

747,110

Other long-term liabilities514,997

545,494

Stockholders' equity2,886,961

2,315,049

Total Liabilities and Stockholders' Equity$

5,519,201

$

4,693,334

* Fiscal 2020 balances are derived from audited financial statements.XILINX, INC.CONDENSED CONSOLIDATED BALANCE SHEETS(In thousands) April 3, 2021 March 28, 2020*

(unaudited)ASSETSCurrent assets:Cash, cash equivalents and short-term investments $ 3,078,899 $ 2,267,216

Accounts receivable, net 285,214 273,028

Inventories 311,085 304,340

Other current assets 71,064 64,557

Total current assets 3,746,262 2,909,141

Net property, plant and equipment 345,023 372,574

Other assets 1,427,916 1,411,619

Total assets $ 5,519,201 $ 4,693,334

LIABILITIES AND STOCKHOLDERS' EQUITYCurrent liabilities:Accounts payable and accrued liabilities $ 624,555 $ 586,421

Current portion of long-term debt - 499,260

Total current liabilities 624,555 1,085,681

Long-term debt 1,492,688 747,110

Other long-term liabilities 514,997 545,494

Stockholders' equity 2,886,961 2,315,049

Total Liabilities and Stockholders' Equity $ 5,519,201 $ 4,693,334

* Fiscal 2020 balances are derived from audited financial statements.XILINX, INC.SUPPLEMENTAL FINANCIAL INFORMATION(Unaudited)(In thousands)Three Months Ended

Twelve Months Ended

April 3, 2021

January 2, 2021

March 28, 2020

April 3, 2021

March 28, 2020

SELECTED CASH FLOW INFORMATION:Depreciation and amortization of software$

29,616

$

30,818

$

28,603

$

122,432

$

97,485

Amortization - others16,574

17,133

16,282

64,082

60,048

Stock-based compensation71,077

66,331

43,991

246,230

186,723

Net cash provided by operating activities240,030

360,137

345,351

1,093,221

1,190,836

Purchases of property, plant, equipment and software12,864

6,009

32,309

49,665

129,289

Payment of dividends to stockholders-

93,155

91,417

278,674

371,793

Repayment of debt500,000

-

-

500,000

-

Repurchases of common stock-

-

470,733

53,682

1,208,917

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

(29,400

)

4,560

(28,082

)

8,471

27,459

STOCK-BASED COMPENSATION INCLUDED IN:Cost of revenues$

3,616

$

3,465

$

1,649

$

12,765

$

10,035

Research and development43,564

40,228

28,857

150,271

114,976

Selling, general and administrative23,897

22,638

13,313

83,194

61,540

Restructuring charges-

-

172

-

172

XILINX, INC.SUPPLEMENTAL FINANCIAL INFORMATION(Unaudited)(In thousands) Three Months Ended Twelve Months Ended

April 3, January March 28, April 3, March 28, 2021 2, 2021 2020 2021 2020

SELECTED CASH FLOWINFORMATION:Depreciation and $ 29,616 $ 30,818 $ 28,603 $ 122,432 $ 97,485amortization ofsoftwareAmortization - 16,574 17,133 16,282 64,082 60,048othersStock-based 71,077 66,331 43,991 246,230 186,723compensationNet cash provided 240,030 360,137 345,351 1,093,221 1,190,836by operatingactivitiesPurchases ofproperty, plant, 12,864 6,009 32,309 49,665 129,289equipment andsoftwarePayment of - 93,155 91,417 278,674 371,793dividends tostockholdersRepayment of debt 500,000 - - 500,000 -

Repurchases of - - 470,733 53,682 1,208,917common stockTaxes paid relatedto net sharesettlement ofrestricted stock (29,400 ) 4,560 (28,082 ) 8,471 27,459units, net ofproceeds fromissuance of commonstock

STOCK-BASEDCOMPENSATIONINCLUDED IN:Cost of revenues $ 3,616 $ 3,465 $ 1,649 $ 12,765 $ 10,035

Research and 43,564 40,228 28,857 150,271 114,976developmentSelling, general 23,897 22,638 13,313 83,194 61,540and administrativeRestructuring - - 172 - 172chargesXILINX, INC.RECONCILIATIONS OF GAAP ACTUALS TO NON-GAAP ACTUALS(Unaudited)(In thousands, except per share amounts)Three Months Ended

Twelve Months Ended

April 3, 2021

January 2, 2021

March 28, 2020

April 3, 2021

March 28, 2020

GAAP gross margin$

570,403

$

547,000

$

528,435

$

2,152,995

$

2,115,036

Inventory valuation adjustment-

-

-

-

3,855

Amortization of acquisition-related intangibles7,733

6,875

6,697

28,000

22,396

M&A related expenses842

114

-

957

-

Non-GAAP gross margin$

578,978

$

553,989

$

535,132

$

2,181,952

$

2,141,287

GAAP operating income$

199,781

$

172,425

$

178,029

$

753,139

$

791,888

Inventory valuation adjustment-

-

-

-

3,855

Amortization of acquisition-related intangibles10,620

9,731

10,098

39,468

31,285

M&A related expenses17,220

19,150

1,798

39,440

14,190

Restructuring charges-

-

28,362

-

28,362

Non-GAAP operating income$

227,621

$

201,306

$

218,287

$

832,047

$

869,580

GAAP net income$

187,884

$

170,972

$

162,257

$

646,508

$

792,721

Inventory valuation adjustment-

-

-

-

3,855

Amortization of acquisition-related intangibles10,620

9,731

10,098

39,468

31,285

M&A related expenses17,220

19,150

1,798

39,440

14,190

Restructuring charges-

-

28,362

-

28,362

Income tax effect of intercompany integration transactions-

-

-

-

(1,838

)

Income tax effect of tax-related items(6,776

)

(528

)

-

49,497

-

Income tax effect of non-GAAP adjustments(5,006

)

(5,100

)

(9,137

)

(13,167

)

(15,271

)

Non-GAAP net income$

203,942

$

194,225

$

193,378

$

761,746

$

853,304

GAAP diluted EPS$

0.75

$

0.69

$

0.65

$

2.62

$

3.11

Inventory valuation adjustment-

-

-

-

0.02

Amortization of acquisition-related intangibles0.04

0.04

0.04

0.16

0.11

M&A related expenses0.08

0.07

0.01

0.15

0.06

Restructuring charges-

-

0.12

-

0.12

Income tax effect of intercompany integration transactions-

-

-

-

(0.01

)

Income tax effect of tax-related items(0.03

)

-

-

0.20

-

Income tax effect of non-GAAP adjustments(0.02

)

(0.02

)

(0.04

)

(0.05

)

(0.06

)

Non-GAAP diluted EPS$

0.82

$

0.78

$

0.78

$

3.08

$

3.35

GAAP cash flow from operations$

240,030

$

360,137

$

345,351

$

1,093,221

$

1,190,836

Capital expenditures (including software)(12,864

)

(6,009

)

(32,309

)

(49,665

)

(129,289

)

Free cash flow$

227,166

$

354,128

$

313,042

$

1,043,556

$

1,061,547

XLNX-F

Source: Xilinx Newsroom

Category: Corporate Announcements

View source version on businesswire.com: https://www.businesswire.com/news/home/20210504006183/en/

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