• Record reve­nue of $879 mil­li­on, repre­sen­ting 3% sequen­ti­al growth and 21% annu­al growth, despi­te ongo­ing indus­try-wide sup­p­ly chain challenges
• Data Cen­ter Group (DCG) reve­nue in the quar­ter increased 14% sequen­ti­al­ly dri­ven by strong demand across hypers­ca­le cloud cus­to­mers and the Fin­tech market
• Wired and Wire­less Group (WWG) reve­nue was up 13% year-over-year and flat sequen­ti­al­ly dri­ven by con­ti­nuing glo­bal 5G deployments
• Aero­space & Defen­se, Indus­tri­al and Test, Mea­su­re­ment & Emu­la­ti­on (AIT) reve­nue decli­ned 10% sequen­ti­al­ly, with record Indus­tri­al end mar­ket per­for­mance off­set by a decli­ne in Aero­space & Defen­se sales, and a mode­st decli­ne in TME
• Auto­mo­ti­ve, Broad­cast and Con­su­mer (ABC) reve­nue in the quar­ter increased 13% sequen­ti­al­ly, with record quar­ters in the Broad­cast and Con­su­mer end markets
• Plat­form trans­for­ma­ti­on con­ti­nues with total Adap­ti­ve SoC reve­nue, which includes Zynq and Ver­sal plat­forms, up 13% sequen­ti­al­ly and 83% year-over-year, and repre­sen­ting 28% of total revenue
• Fis­cal first quar­ter free cash flow of $373 mil­li­on, repre­sen­ting 42% of revenue

SAN JOSE, Calif.–Xilinx, Inc. (Nasdaq: XLNX), the lea­der in adap­ti­ve com­pu­ting, today announ­ced record reve­nues of $879 mil­li­on for the fis­cal first quar­ter, up 3% over the pre­vious quarter.

GAAP net inco­me for the fis­cal first quar­ter was $206 mil­li­on, or $0.83 per diluted share. Non-GAAP net inco­me for the quar­ter was $236 mil­li­on, or $0.95 per diluted share.

Addi­tio­nal first quar­ter of fis­cal year 2022 com­pa­ri­sons are pro­vi­ded in the charts below.

“Xilinx deli­ver­ed ano­ther record quar­ter as the demand for our pro­ducts remains robust, despi­te an unpre­ce­den­ted and chal­len­ging sup­p­ly cons­trai­ned envi­ron­ment,” said Vic­tor Peng, Xilinx pre­si­dent and CEO. “Our stel­lar results were dri­ven by strength across our diver­si­fied end mar­kets. We con­ti­nue to actively mana­ge the sup­p­ly situa­ti­on with our part­ners, inclu­ding qua­li­fy­ing a new sup­pli­er in a key part of our sup­p­ly chain, to meet strong cus­to­mer demand. In addi­ti­on, we con­ti­nue to exe­cu­te extre­me­ly well on our road­map as we have broa­den­ed the Ver­sal port­fo­lio with the Ver­sal Edge and Ver­sal HBM series announce­ments. We are working every day to impro­ve sup­p­ly for our customers.”

“Record Q1 reve­nues were dri­ven by strength in the Data Cen­ter end mar­ket, as well as a record quar­ters for our Indus­tri­al, Broad­cast and Con­su­mer end mar­kets. This dro­ve 3% sequen­ti­al and 21% year-over-year growth,” said Bri­ce Hill, Xilinx CFO. “Advan­ced Pro­ducts grew 2% sequen­ti­al­ly and 27% annu­al­ly, and repre­sen­ted 72% of total reve­nue. Top line per­for­mance dro­ve record free cash flows of $373 mil­li­on, or 42% of revenue.

“While days of inven­to­ry are near his­to­ri­cal lows due to the sup­p­ly chain cons­traints, we expect inven­to­ry to remain rela­tively sta­ble at cur­rent levels as some expec­ted sup­p­ly increa­ses will be off­set by con­tin­ued strong cus­to­mer demand. COVID sur­ges in Sou­the­ast Asia during Q1 resul­ted in hig­her quar­ter-end ship­ments to dis­tri­bu­tors resul­ting in tran­si­to­ry hig­her chan­nel inven­to­ry. Chan­nel inven­to­ry levels decreased by the ear­ly part of fis­cal Q2 as pro­ducts ship­ped through to end cus­to­mers, and remain lean. We are very proud of the effort and agi­li­ty of our employees and part­ners in sup­port of our customers.”

Pro­ducts are clas­si­fied as follows:

Advan­ced Pro­ducts: Ver­sal, UltraS­ca­le+, UltraS­ca­le and 7‑series pro­duct fami­lies, and pro­duc­tion boards busi­ness com­po­sed of Alveo, Solar­fla­re, Net­work, and System-On-Modules.

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.

Pro­duct and Finan­cial High­lights — Fis­cal First Quar­ter 2022

• Xilinx unvei­led the Ver­sal™ AI Edge series, desi­gned to enable AI inno­va­ti­on from the edge to the end­point with 10x grea­ter com­pu­te den­si­ty ver­sus pre­vious-gene­ra­ti­on adap­ti­ve SoCs. Tar­get appli­ca­ti­ons include auto­ma­ted dri­ving, col­la­bo­ra­ti­ve robo­tics, pre­dic­ti­ve fac­to­ry and health­ca­re sys­tems, and mul­ti-mis­si­on pay­loads for the aero­space and defen­se end markets.
• Xilinx also intro­du­ced the Ver­sal™ HBM series, archi­tec­ted to keep up with the hig­her memo­ry needs of the most com­pu­te inten­si­ve, memo­ry bound appli­ca­ti­ons for data cen­ter, wired net­wor­king, test and mea­su­re­ment, and aero­space and defen­se end markets.
• Xilinx intro­du­ced Viv­a­do® ML Edi­ti­ons, the industry’s first FPGA EDA tool suite based on machi­ne-lear­ning opti­miza­ti­on algo­rith­ms, as well as advan­ced team-based design flows, for signi­fi­cant design time and cost savings.
• Xilinx released Vitis™ AI 1.4 fea­turing sup­port for the Company’s 7nm Ver­sal ACAPs and the 16nm-based Kria™ SoM pro­vi­ding more pos­si­bi­li­ties for users to achie­ve hig­her-per­for­mance, sca­la­bi­li­ty and cloud-to-edge deploy­ment opti­ons in AI productization.
• Xilinx acqui­red Sil­e­xi­ca, a pro­vi­der of C/C++ pro­gramming and ana­ly­sis tools who­se SLX FPGA tool suite will be inte­gra­ted with the Xilinx Vitis uni­fied soft­ware plat­form to redu­ce the lear­ning cur­ve for soft­ware deve­lo­pers buil­ding appli­ca­ti­ons on Xilinx technology.

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 first quar­ter 2022 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.

XLNX‑F

Source: Xilinx Newsroom