Xilinx Announces Q3 Fiscal 2016 Results; Strong New Product Growth Drives 7% Sequential Sales Increase

SAN JOSE, Calif., Jan. 20, 2016 -- Xilinx, Inc. (Nasdaq: XLNX) today announced third quarter fiscal 2016 sales of $566 million, up 7% from the prior quarter and down 5% from the same quarter of the prior fiscal year. Third quarter fiscal 2016 net income was $131 million, or $0.49 per diluted share.

The Xilinx Board of Directors announced a quarterly cash dividend of $0.31 per outstanding share of common stock, payable on March 16, 2016 to all stockholders of record at the close of business on March 2, 2016.

Additional third quarter comparisons are set forth in the charts below:

GAAP Results
(In millions, except EPS)

				Growth Rates
	Q3 FY 2016	Q2 FY 2016	Q3 FY 2015	Q-T-Q	Y-T-Y
Net revenues	$566	$528	$594	7%	-5%
Operating income	$160	$153	$190	5%	-16%
Net income	$131	$127	$168	3%	-22%
Diluted earnings per share	$0.49	$0.48	$0.62	2%	-21%

"New product sales were exceptionally strong during the quarter increasing 18% sequentially, enabling Xilinx to reach the high-end of our sales guidance. Both our 7-series and UltraScale families reached new sales records during the quarter, driven by a very broad base of end markets," said Moshe Gavrielov, Xilinx President and Chief Executive Officer. "During the quarter we continued to execute on the delivery of our next-generation UltraScale+ family by launching public access development support for these families. This closely follows the first shipment of the Zynq UltraScale+ MPSoc last quarter, which was ahead of schedule. The capabilities of the UltraScale+ product family, coupled with its first-mover advantage, make it uniquely suited for applications ranging from next generation ADAS and Industrial Internet-of-Things to 5G wireless."

Net Revenues by Geography:

	Percentages			Growth Rates
	Q3 FY 2016	Q2 FY 2016	Q3 FY 2015	Q-T-Q	Y-T-Y
North America	32%	30%	34%	16%	-10%
Asia Pacific	41%	40%	39%	9%	-1%
Europe	17%	20%	17%	-6%	-5%
Japan	10%	10%	10%	2%	0%

Net Revenues by End Market:

	Percentages			Growth Rates
	Q3 FY 2016	Q2 FY 2016	Q3 FY 2015	Q-T-Q	Y-T-Y
Communications & Data Center	43%	41%	43%	12%	-3%
Industrial, Aerospace & Defense	41%	41%	43%	7%	-10%
Broadcast, Consumer & Automotive	16%	18%	14%	-4%	7%

Net Revenues by Product:

	Percentages			Growth Rates
	Q3 FY 2016	Q2 FY 2016	Q3 FY 2015	Q-T-Q	Y-T-Y
New	47%	43%	36%	18%	28%
Mainstream	23%	25%	26%	-3%	-17%
Base	26%	28%	35%	-1%	-30%
Support	4%	4%	3%	17%	11%

Products are classified as follows:

• New products: Zynq UltraScale+, Virtex and Kintex UltraScale, Virtex7, Kintex7, Artix-7, Zynq-7000, Spartan6 products
• Mainstream products: Virtex-6, Virtex5, and CoolRunnerII products
• Base products: Virtex4, VirtexII, VirtexE, Spartan-3 Spartan-II, CoolRunner and XC9500 products

Key Statistics:
(Dollars in millions)

	Q3 FY 2016	Q2 FY 2016	Q3 FY 2015
Annual Return on Equity (%)*	21	21	25
Operating Cash Flow	$290	$134	$291
Depreciation Expense	$13	$12	$14
Capital Expenditures	$6	$5	$6
Combined Inventory Days	119	137	134
Revenue Turns (%)	49	51	44

*Return on equity calculation: Annualized net income/average stockholders' equity

Highlights – December Quarter Fiscal 2016

• After shipping the industry's first 16nm multiprocessor SoC a quarter ahead of schedule, Xilinx announced public access support for the 16nm UltraScale+ families, including the Vivado Design Suite HLx Editions, embedded software development tools, Xilinx Power Estimator and technical documentation for Zynq UltraScale+ MPSoC and Kintex UltraScale+ devices. This announcement marked the industry's first publicly available tools for 16nm devices, enabling broad market adoption.
• Xilinx and IBM announced a strategic collaboration to accelerate data center applications. This collaboration is expected to enable higher performance and energy-efficient data center applications through Xilinx FPGA-enabled workload acceleration on IBM POWER-based systems. This follows the Company's announcement last quarter with Qualcomm Technologies, Inc. Target applications such as machine learning, network functions virtualization (NFV), genomics, high performance computing and big data analytics.
• Xilinx announced the Spartan-7 FPGA family that will deliver I/O intensive devices for cost-sensitive applications. The new family will address connectivity requirements across a breadth of markets including automotive, consumer, industrial IoT, data center, wired and wireless communications, and portable medical solutions.

Business Outlook – March Quarter Fiscal 2016

• Sales are expected to be approximately flat sequentially.
• Gross margin is expected to be 68-69%.
• Operating expenses are expected to be approximately $220 million including $1 million of amortization of acquisition-related intangibles.
• Other income and expenses are expected to be a net expense of approximately $6 million.
• Fully diluted share count is expected to be approximately 267 million.
• March quarter tax rate is expected to be approximately 13-14%.

Financial Tables

To read financial tables, click here

Conference Call

A conference call will be held today at 2:00 p.m. Pacific Time to discuss the December quarter financial results and management's outlook for the March quarter. The webcast and subsequent replay will be available in the investor relations section of the Company's web site at www.investor.xilinx.com. A telephonic replay of the call may be accessed later in the day by calling (855) 859-2056 and referencing confirmation code 98854132. The telephonic replay will be available for two weeks following the live call.

About Xilinx

Xilinx develops All Programmable technologies and devices, beyond hardware to software, digital to analog, and single to multiple die in 3D ICs. These industry leading devices are coupled with a next-generation design environment and IP to serve a broad range of customer needs, from programmable logic to programmable systems integration. For more information, visit www.xilinx.com.