Xilinx (XLNX) Tops Q2 EPS by 2c, Miss on Revenues; Offers 3Q18 Revenue Outlook

Xilinx (NASDAQ: XLNX) reported Q2 EPS of $0.65, $0.02 better than the analyst estimate of $0.63. Revenue for the quarter came in at $619.5 million versus the consensus estimate of $620.95 million.

Business Outlook – December Quarter Fiscal Year 2018

• Sales are expected to be approximately $615 - $645 million.
• Gross margin is expected to be 69% to 71%.
• Operating expenses are expected to increase to approximately $260 million.
• Other income is expected to be approximately $4 million.
• December quarter tax rate is expected to be approximately 11 - 14%.

GUIDANCE:

Xilinx sees Q3 2018 revenue of $615-645 million, versus the consensus of $626.06 million.

Product and Financial Highlights – September Quarter

• The Industrial, Aerospace & Defense end market set a quarterly record with revenues of $278 million, an increase of 17% from the same quarter a year ago, and constituted 45% of total Xilinx revenues. The success of this end market is a clear illustration of the robustness and diversification of the Xilinx product portfolio.
• The Advanced Products category continues to deliver solid revenue growth, posting an increase of 21% from the year ago quarter. Broad-based growth was driven from the Zynq SoC platform and from the industry-leading 20nm and 16nm technology nodes. Zynq revenue increased 65% from the same quarter a year ago with growth driven largely by applications in Advanced Driver Assist (ADAS), Industrial, and Aerospace and Defense. Revenues from the 20nm node increased more than 40% from the year ago quarter and revenues from the 16nm node nearly quadrupled during the same period, reflecting broader customer and multi-market adoption.
• Xilinx made several significant announcements highlighting strong momentum in its Cloud Computing market expansion opportunity. Xilinx announced availability of the software defined development environment, SDAccel, on Amazon Web Services (AWS) for use with F1 instances. In addition, Xilinx announced that Huawei has chosen the Company\'s high performance Virtex® UltraScale+™ FPGAs to power their first FaaS instance as part of a new accelerated cloud service. Lastly, Alibaba Cloud, the largest cloud service provider in China, recently announced its next generation FaaS F2 and F3 instances, based on Xilinx FPGAs.
• Xilinx, ARM, Cadence and TSMC announced a collaboration to build the first Cache Coherent Interconnect for Accelerators (CCIX) test chip in TSMC 7nm FinFET process technology for delivery in year 2018. The test chip aims to provide a silicon proof point to demonstrate the capabilities of CCIX in enabling multi-core high-performance ARM® CPUs working via a coherent fabric to off-chip FPGA accelerators.
• Xilinx announced delivery of its Zynq® UltraScale+™ RFSoC family, a disruptive integration and architectural breakthrough for applications including 5G, cable and wireless backhaul. Based on Xilinx\'s 16nm technology, the RFSoCs integrate RF data converters for up to 50-75% system power and footprint reduction. With silicon samples already shipping to multiple customers, the early access program for this product family is now available.

For earnings history and earnings-related data on Xilinx (XLNX) click here.

You May Also Be Interested In

• Freightos Limited (CRGO) Tops Q2 EPS by 3c ; Offers Guidance
• Benchmark Reiterates Buy Rating on Odysight.AI Inc. (ODYS)
• DA Davidson Reiterates Buy Rating on Boost Run (BRUN)