We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Xilinx Inc. delivered fourth-quarter fiscal 2020 earnings of 78 cents per share, exceeding the Zacks Consensus Estimate by 2.63%. However, the bottom line was 26% lower than the prior-year quarter’s 94 cents.
Revenues declined 9% year over year to $756 million but beat the Zacks Consensus Estimate of $754 million. Weakness in the WWG business is a major overhang on the company.
The impact of the Huawei ban and other trade-related uncertainties along with the adverse impact of the coronavirus pandemic on the business hurt the top line.
Continued softness in the WWG business was a dampener in the fiscal fourth quarter.
Product-wise, advanced product revenues declined 6% year over year, contributing 70% to total revenues. However, the revenues from core products (30% of total) decreased 14% from the year-ago quarter.
Despite the impact of a deteriorating wired and wireless business, Zynq-based revenues grew 2% on a year-over-year basis.
On the basis of end markets, WWG revenues (24% of total revenues) dropped 46% year over year. However, solid radio shipments and strength in optical transport networks and access were positives for this business.
Automotive, Broadcast and Consumer group (ABC) (16% of total revenues) increased 2% year over year. The automotive business suffered from macroeconomic and trade-related headwinds.
A&D, Industrial and TME (AIT) revenues (50% of total revenues) grew 15% on a year-over-year basis. The company witnessed increased revenues from emulation and prototyping customers in the TME market.
Data Center revenues (10% of total) surged 77% from the year-ago period, primarily owing to contributions from compute acceleration, driven by a mix of cloud and high-performance compute customers. Notable contribution from a hyperscaler deployment of an FPGA-based SmartNIC was a tailwind. Growing opportunity pipeline at DCG at a double-digit rate, particularly in video, HPC, database and fintech applications, was also a positive.
Geographically, the company registered a year-over-year decrease of 28% in the Asia Pacific, 4% in Japan and 11% in Europe. Meanwhile, revenues from North America grew 27% year over year.
Margins
Gross margin came in at 71%, up 350 basis points (bps) year over year.
Non-GAAP OpEx was $317 million, lower than the midpoint of the guidance range due to a reduction in hiring and discretionary spending.
The company posted non-GAAP operating income of $218.3 million, down 15.6% year over year. Operating margin contracted 220 bps to 29%.
Balance Sheet and Cash Flow
Xilinx exited the fiscal fourth quarter with cash, cash equivalents and short-term investments of approximately $2.27 billion compared with $2.43 billion sequentially.
The company has total long-term debt of $747.1 million.
Xilinx generated $345.4 million of cash from operations compared with $323.6 million in the previous quarter.
During the quarter, the company repurchased 5.7 million shares at an average price of $83 per share and paid out dividends worth $91 million.
Outlook
For the first quarter of fiscal 2021, the company expects revenues between $660 million and $720 million.
In the earnings call, management mentioned that the company forecasts the WWG business to grow in the fiscal first quarter.
However, lower AIT, ADC and DCG sales are expected to lead to a sequential decline in revenues in the fiscal first quarter.
Gross margin is forecast to be 68-70%. Operating expenses are projected in the range of $307-$311 million for the fiscal first quarter.
The company refrained from providing any guidance for fiscal 2021 as it is still assessing the expected impacts of COVID-19-related disruptions in some portions of its core markets, including Automotive, Broadcast, Consumer, Industrial and semiconductor test.
Long-term earnings growth rate for Zoom, Pixelworks and Avid is currently pegged at 26.56%, 20% and 20%, respectively.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
Image: Bigstock
Xilinx's (XLNX) Q4 Earnings & Revenues Surpass Estimates
Xilinx Inc. delivered fourth-quarter fiscal 2020 earnings of 78 cents per share, exceeding the Zacks Consensus Estimate by 2.63%. However, the bottom line was 26% lower than the prior-year quarter’s 94 cents.
Revenues declined 9% year over year to $756 million but beat the Zacks Consensus Estimate of $754 million. Weakness in the WWG business is a major overhang on the company.
The impact of the Huawei ban and other trade-related uncertainties along with the adverse impact of the coronavirus pandemic on the business hurt the top line.
Continued softness in the WWG business was a dampener in the fiscal fourth quarter.
Xilinx, Inc. Price, Consensus and EPS Surprise
Xilinx, Inc. price-consensus-eps-surprise-chart | Xilinx, Inc. Quote
Quarter in Detail
Product-wise, advanced product revenues declined 6% year over year, contributing 70% to total revenues. However, the revenues from core products (30% of total) decreased 14% from the year-ago quarter.
Despite the impact of a deteriorating wired and wireless business, Zynq-based revenues grew 2% on a year-over-year basis.
On the basis of end markets, WWG revenues (24% of total revenues) dropped 46% year over year. However, solid radio shipments and strength in optical transport networks and access were positives for this business.
Automotive, Broadcast and Consumer group (ABC) (16% of total revenues) increased 2% year over year. The automotive business suffered from macroeconomic and trade-related headwinds.
A&D, Industrial and TME (AIT) revenues (50% of total revenues) grew 15% on a year-over-year basis. The company witnessed increased revenues from emulation and prototyping customers in the TME market.
Data Center revenues (10% of total) surged 77% from the year-ago period, primarily owing to contributions from compute acceleration, driven by a mix of cloud and high-performance compute customers. Notable contribution from a hyperscaler deployment of an FPGA-based SmartNIC was a tailwind. Growing opportunity pipeline at DCG at a double-digit rate, particularly in video, HPC, database and fintech applications, was also a positive.
Geographically, the company registered a year-over-year decrease of 28% in the Asia Pacific, 4% in Japan and 11% in Europe. Meanwhile, revenues from North America grew 27% year over year.
Margins
Gross margin came in at 71%, up 350 basis points (bps) year over year.
Non-GAAP OpEx was $317 million, lower than the midpoint of the guidance range due to a reduction in hiring and discretionary spending.
The company posted non-GAAP operating income of $218.3 million, down 15.6% year over year. Operating margin contracted 220 bps to 29%.
Balance Sheet and Cash Flow
Xilinx exited the fiscal fourth quarter with cash, cash equivalents and short-term investments of approximately $2.27 billion compared with $2.43 billion sequentially.
The company has total long-term debt of $747.1 million.
Xilinx generated $345.4 million of cash from operations compared with $323.6 million in the previous quarter.
During the quarter, the company repurchased 5.7 million shares at an average price of $83 per share and paid out dividends worth $91 million.
Outlook
For the first quarter of fiscal 2021, the company expects revenues between $660 million and $720 million.
In the earnings call, management mentioned that the company forecasts the WWG business to grow in the fiscal first quarter.
However, lower AIT, ADC and DCG sales are expected to lead to a sequential decline in revenues in the fiscal first quarter.
Gross margin is forecast to be 68-70%. Operating expenses are projected in the range of $307-$311 million for the fiscal first quarter.
The company refrained from providing any guidance for fiscal 2021 as it is still assessing the expected impacts of COVID-19-related disruptions in some portions of its core markets, including Automotive, Broadcast, Consumer, Industrial and semiconductor test.
Zacks Rank & Stocks to Consider
Xilinx currently has a Zacks Rank #3 (Hold).
A few better-ranked stocks in the broader technology sector are Zoom Video Communications, Inc. (ZM - Free Report) , Pixelworks, Inc. (PXLW - Free Report) and Avid Technology, Inc. , all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rate for Zoom, Pixelworks and Avid is currently pegged at 26.56%, 20% and 20%, respectively.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>