SAN JOSE, Calif., Jan. 29, 2020 — Xilinx, Inc., the leader in adaptive and intelligent computing, today announced revenues of $723 million for the third quarter of fiscal year 2020, down 13% from the prior quarter and down 10% year over year. GAAP net income for the December quarter was $162 million, or $0.64 per diluted share.  Non-GAAP net income for the December quarter was $171 million, or $0.68 per diluted share.

The Xilinx Board of Directors declared a quarterly cash dividend of $0.37 per outstanding share of common stock payable on February 20, 2020 to all stockholders of record at the close of business on February 11, 2020.

Additional third quarter of fiscal year 2020 comparisons are provided in the charts below.

Xilinx also announced cost-saving measures designed to drive structural operating efficiencies across the company. Xilinx expects to reduce its global workforce by approximately 7% through a targeted reduction in force and meaningfully slower hiring to replace attrition. In addition to the targeted reduction in force, Xilinx is taking other measures to reduce operating expenses, including further reducing discretionary spend and targeting additional operating efficiencies across the business. As a result of these measures, Xilinx expects to generate non-GAAP cost and operating expense savings of approximately $17M to $20M in the fourth quarter.  Additionally, Xilinx expects to incur a GAAP pre-tax charge of approximately $25M to $30M in the fourth quarter of fiscal 2020 primarily related to severance pay expenses.

“As expected, our fiscal third quarter was a challenging quarter and our revenue came in near the midpoint of our guidance. Given the revenue headwinds we experienced during the quarter, we took  actions to reduce our operating expenses which delivered earnings greater than our expectations.

“Fiscal fourth quarter revenue is expected to grow on a sequential basis as a result of strength in our core vertical markets and a moderate resumption of growth in our data center business. However, we are seeing greater than expected weakness in our wired and wireless business due to a slowdown in both 5G and wired infrastructure deployments, in addition to ongoing global trade headwinds.

“We expect some of these headwinds in our wired and wireless business to be persistent, resulting in revenue growth lower than our prior expectations.  We are, therefore, taking several actions to further reduce our operating expenses this quarter.

“These are difficult actions, but we believe the decisive steps we are taking to reset our operating expenses will allow us to drive our growth strategy and technology roadmap while enabling a more appropriate level of operating profitability.  We remain extremely focused on our mission and long-term growth opportunities as the leader in adaptable platforms from the cloud to edge to endpoints,” said Victor Peng, president and chief executive officer.

 

Product and Financial Highlights – Fiscal Third Quarter 2020

• Advanced Products constituted approximately 70% of total revenues in the third quarter, although revenues from the category decreased 4% year over year. Zynq-based revenues grew 26% year over year despite the impact of a weaker Wireless business, further validating Xilinx platform strategy. The Zynq SoC platform, which includes Zynq at 28nm and both MPSoC and RFSoC at 16nm, represented 23% of total revenues, higher than the year ago period.
• In early December, Xilinx announced that Vitis AI, its AI inference development platform was available for download. Combined with the Vitis unified software platform, Vitis AI empowers software developers with deep learning acceleration. Vitis AI integrates a domain-specific architecture (DSA) and configures Xilinx hardware to be optimized and programmed using industry-leading frameworks such as TensorFlow and Caffe. Xilinx has cumulatively trained over 8,000 developers to date and has over 900 independent software vendors as part of the ecosystem.
• Collaborating with Xilinx, Cortical.io a, leader in AI based natural language understanding , announced a new e-mail classification appliance. Using Supermicro servers and Xilinx Alveo accelerator cards, the appliance is expected to enable real-time filtering and classification of incoming and outgoing e-mails.
• Xilinx announced that Automotive Zynq UltraScale+ MPSoC is powering Baidu’s production-ready Apollo Computing Unit (ACU)- an advanced platform for automated valet parking (AVP), the industry’s first dedicated computing solution for AVP. Separately, Xilinx disclosed that SK Telecom adopted Xilinx Alveo Data Center Accelerator cards to power a real-time AI-based physical intrusion and theft detection service.
• During the XDF Europe keynote, CERN, a European organization for nuclear research, joined Xilinx onstage to discuss a network of Xilinx FPGAs housed 100 meters underground designed to instantaneously filter and identify novel particle substructures as evidence of the existence of dark matter and other physical phenomena. CERN said that Xilinx enabled a fixed, extremely low latency AI inference capability of about three microseconds per event, a feat that could not be achieved by CPUs or GPUs.
• During the XDF China keynote, Inspur Systems joined Xilinx onstage proclaiming that Xilinx ACAPs and FPGAs will be a cornerstone of Inspur’s future technology. Alibaba Cloud also highlighted how Xilinx technology is not only powering Alibaba’s own data center, but also that of its enterprise customers using Alibaba Cloud services. Alibaba noted that unprecedented traffic hosted during Singles Day in Asia has proven the reliability and security of its system platform running Xilinx FPGAs.
• Xilinx repurchased 2.8 million shares of common stock at an average price of $93.70 per share and paid dividends of $93 million during the quarter.

Business Outlook – Fiscal Fourth Quarter 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.

About Xilinx

Xilinx develops highly flexible and adaptive processing platforms that enable rapid innovation across a variety of technologies – from the endpoint to the edge to the cloud. Xilinx is the inventor of the FPGA, hardware programmable SoCs and the ACAP, designed to deliver the most dynamic processor technology in the industry and enable the adaptable, intelligent and connected world of the future. For more information, visit www.xilinx.com.

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Source: Xilinx