Advanced Products: Alveo, 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 FY 2020 | Q1 FY 2020 | Q2 FY 2019 |
|
|
|
|
Annual Return on Equity (%)* | 34 | 35 | 34 |
|
|
|
|
Operating Cash Flow | $224 | $298 | $313 |
|
|
|
|
Depreciation Expense (including software amortization) | $22 | $20 | $16 |
|
|
|
|
Capital Expenditures (including software) | $34 | $29 | $14 |
|
|
|
|
Inventory Days (internal) | 104 | 107 | 96 |
|
|
|
|
Revenue Turns (%) | 37 | 24 | 48 |
|
*Return on equity calculation: Annualized year to date GAAP net income/average stockholders' equity |
Product and Financial Highlights – Fiscal Second Quarter 2020
- The Advanced Products category increased 29% year over year and constituted approximately 74% of total revenues in the second quarter. Our 16 nanometer (nm) node continued its accelerated ramp, with revenues increasing over 3 times year-over-year, primarily driven by customers in 5G and Data Center.
- Xilinx announced the expansion of its 16nm Virtex® UltraScale+™ family to include the world's largest FPGA — the Virtex UltraScale+ VU19P. With 35 billion transistors, the VU19P provides the highest logic density and I/O count on a single device ever built, enabling emulation and prototyping of tomorrow's most advanced ASIC and SoC technologies, as well as test, measurement, compute, networking, aerospace and defense-related applications.
- Zynq-based revenues grew 61% year over year, with continuing business momentum from a broad base of end markets including Communications, Automotive and Industrial. The Zynq SoC platform, which includes Zynq at 28nm and both MPSoC and RFSoC at 16nm, now represents 26% of total revenues, indicating significant progress in Xilinx's transformation into a platform company.
- Xilinx announced the expansion of its Alveo accelerator card portfolio with the launch of the Alveo™ U50. The Alveo U50 is the industry's first low profile, half-height, half-length accelerator card with PCIe Gen 4 support and delivers between 10-20x improvements in throughput, latency and power efficiency.
- At the third annual Xilinx Developer Forum held in San Jose, California, Xilinx announced Vitis™, a unified software platform that enables a broad new range of developers – including software engineers and AI scientists – to take advantage of the power of hardware adaptability. The Vitis unified software platform automatically tailors the Xilinx hardware architecture to the software or algorithmic code without the need for hardware expertise. Rather than imposing a proprietary development environment, the Vitis platform plugs into common software developer tools and utilizes a rich set of optimized open source libraries, enabling developers to focus on their algorithms.
- Xilinx repurchased 1.5 million shares of common stock at an average price of $103.60 per share and paid dividends of $93 million during the quarter.
Business Outlook – Fiscal Third Quarter 2020 & Fiscal Year 2020
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 actual results may differ materially, as a result of, among other things, the important factors discussed and referred to at the end of this release.
Xilinx's fiscal third quarter and fiscal year 2020 guidance takes into account the impact from the U.S. government's announced export restriction to one of our customers in China and assumes no revenues from that customer.
Fiscal Third Quarter 2020
| GAAP | Non-GAAP
| Non-GAAP |
Revenues | $710M- $740M |
| $710M- $740M |
Gross Margin | 66% - 68% | 1% (1) | 67% - 69% |
Operating Expenses | ~$336M | $6M(2) | ~$330M |
Other Income | ~$1M |
| ~$1M |
Tax Rate | 4%-6% |
| 4%-6% |
Fiscal Year 2020
| GAAP | Non-GAAP
| Non-GAAP |
Revenues | $3,210M-$3,280M |
| $3,210M-$3,280M |
Gross Margin | 65.5% - 67.5% | 1% (1) | 66.5% - 68.5% |
Operating Expenses | ~$1,330M | $24M(2) | ~$1,306M |
Other Income | ~$25M |
| ~$25M |
Tax Rate | 4%-5% |
| 4%-5% |
Diluted Share Count | 256M |
| 256M |
| |
Notes regarding Non-GAAP Adjustments: | |
| |
| (1) Amortization of acquisition-related intangibles and inventory valuation adjustment |
| (2) M&A related expenses and amortization of acquisition-related intangibles |