SAN JOSE, Calif. -- April 22, 2015 -- Xilinx, Inc. (Nasdaq: XLNX) today announced fiscal 2015 sales of $2.38 billion, flat with the prior fiscal year. Fiscal 2015 net income increased 3% to $648 million, or $2.35 per diluted share, versus fiscal 2014 net income of $630 million or $2.19 per diluted share.
Fourth quarter fiscal 2015 sales were $567 million, down 4% sequentially and down 8% from the fourth quarter of the prior fiscal year. Fourth quarter fiscal 2015 net income was $135 million, or $0.50 per diluted share, including a $24 million restructuring charge, or $0.08 per diluted share.
Additional fourth quarter comparisons are represented in the charts below:
GAAP Results
(In millions, except EPS)
| | | | | Growth Rates |
| | Q4 FY 2015 | Q3 FY 2015 | Q4 FY 2014 | Q-T-Q | Y-T-Y |
| Net revenues | $567 | $594 | $618 | -4% | -8% |
| Operating income | $159 | $190 | $190 | -17% | -16% |
| Net income | $135 | $168 | $156 | -20% | -14% |
| Diluted earnings per share | $0.50 | $0.62 | $0.53 | -19% | -6% |
"Sales from the 28nm product family increased significantly with broad-based growth in all end markets and all products," said Moshe Gavrielov, Xilinx President and Chief Executive Officer. "Additionally, the Company reported a record gross margin for the fiscal year of 70%. This is up from 69% in the prior fiscal year and is a testament to the continued focus and rigor we have placed on improving our overall profitability."
Net Revenues by Geography:
| | Percentages | Growth Rates |
| | Q4 FY 2015 | Q3 FY 2015 | Q4 FY 2014 | Q-T-Q | Y-T-Y |
| North America | 32% | 34% | 27% | -8% | 10% |
| Asia Pacific | 37% | 39% | 43% | -8% | -20% |
| Europe | 21% | 17% | 21% | 12% | -9% |
| Japan | 10% | 10% | 9% | -5% | -5% |
Net Revenues by End Market:
| | Percentages | Growth Rates |
| | Q4 FY 2015 | Q3 FY 2015 | Q4 FY 2014 | Q-T-Q | Y-T-Y |
| Communications & Data Center | 39% | 41% | 49% | -7% | -26% |
| Industrial, Aerospace & Defense | 42% | 43% | 34% | -7% | 13% |
| Broadcast, Consumer & Automotive | 17% | 14% | 15% | 12% | 6% |
| Other | 2% | 2% | 2% | -12% | -31% |
Net Revenues by Product:
| | Percentages | Growth Rates |
| | Q4 FY 2015 | Q3 FY 2015 | Q4 FY 2014 | Q-T-Q | Y-T-Y |
| New | 49% | 43% | 42% | 8% | 5% |
| Mainstream | 29% | 29% | 34% | -6% | -22% |
| Base | 19% | 25% | 21% | -25% | -14% |
| Support | 3% | 3% | 3% | 4% | -6% |
Products are classified as follows:
- New products: Virtex® and Kintex™ Ultrascale, Virtex7, Kintex7, Artix™-7, Zynq™-7000, Virtex6, Spartan™6 products
- Mainstream products: Virtex5, Spartan3 and CoolRunner™II products
- Base products: Virtex4, VirtexII, VirtexE, Virtex, Spartan-II, Spartan, CoolRunner and XC9500 products
- Support products: Configuration solutions, HardWire, Software & Support/Services
Key Statistics:
(Dollars in millions)
| | Q4 FY 2015 | Q3 FY 2015 | Q4 FY 2014 |
| Annual Return on Equity (%)* | 24 | 25 | 22 |
| Operating Cash Flow | $166 | $291 | $189 |
| Depreciation Expense | $14 | $14 | $14 |
| Capital Expenditures | $6 | $6 | $14 |
| Combined Inventory Days | 136 | 134 | 115 |
| Revenue Turns (%) | 51 | 44 | 54 |
*Return on equity calculation: Annualized net income/average stockholders' equity
Product and Financial Highlights – Fiscal 2015
- During fiscal year 2015, sales from Xilinx's 28nm product portfolio, which includes the 7 series FPGAs and the Zynq-7000 families, represented more than $580 million. This was up from approximately $380 million in the prior fiscal year. Material contributions from all end markets and all products drove the significant sales increase.
- The Company continued to drive gross margin improvement, achieving a record 70% gross margin in fiscal year 2015, up from 69% in the prior fiscal year. This improvement reflects the Company's continued discipline and focus on driving gross margin expansion across our product portfolio.
- During fiscal 2015, Xilinx paid its shareholders a record $306 million in dividends and repurchased 15.3 million shares for $650 million. Additionally, Xilinx increased its quarterly dividend by $0.02 per share to $0.31 per share, the 10th consecutive year of dividend increases since initiating its first dividend in 2004. Xilinx has returned 100% of operating cash flow to stockholders in the form of dividend and share repurchase over the past ten years.
- Xilinx, in close partnership with TSMC, began shipping the 20nm Ultrascale family, including the industry's only 20nm high-end family and the industry's largest FPGA, which delivers over 4X the capacity of competitive devices. This family scales from 20nm planar through 16nm FinFET technologies and beyond, while also scaling from monolithic through 3D ICs. Additionally, Xilinx remains on track to tape out its first 16nm device with TSMC in the June quarter.
- Xilinx continued to strengthen its Software Development Environments (SDx™). SDx enables developers with little or no FPGA expertise to use high level programming languages like C, C++ and OpenCL to leverage the power of programmable hardware with industry standard processors on or off chip. Xilinx currently offers three different environments targeting high growth opportunities in areas such as data center, software defined networks and Industrial Internet-of-things.
Business Outlook – June Quarter Fiscal 2016
- Sales are expected to be flat to down 4% sequentially.
- Gross margin is expected to be 69% to 70%.
- Operating expenses are expected to be approximately $210 million including $2 million of amortization of acquisition-related intangibles.
- Other income and expenses are expected to be a net expense of approximately $12 million.
- Fully diluted share count is expected to be approximately 266 million.
- June 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 March quarter financial results and management's outlook for the June 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 98457054. 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.
