Xilinx calendar Q1 up 12% y-o-y
Author: EIS Release Date: May 12, 2020
Xilinx had calendar Q1 (FY Q2) sales of $833 million down 2% from the prior quarter and up 12% y-o-y. Operating income was $240 million and net income $217 million.
For the full fiscal year to the end of March, Xilinx had $3.2 billion of revenues, which was up 3% y-o-y, for a net income of $792 million.
“Overall, the first half of our current fiscal year remained strong despite the impact of continued business restrictions related to Huawei which was offset by higher than expected 5G product demand from other global communications OEMs and stronger than expected growth in our data centre business,” said CEO Victor Peng (pictured).
“However, we are seeing a combination of headwinds in the second half related to continuing business restrictions, weaker demand for communications products and macro-related weakness offsetting strong overall growth in data centre and improvement across our core vertical markets. For fiscal 2020, we believe that third quarter (calendar Q2) will be our low point and we expect to see a return to sequential revenue growth in our fourth quarter. Despite the weaker third quarter, we expect fiscal year 2020 revenues to grow approximately six percent compared to fiscal year 2019.”
The company started seeing coronavirus-related demand weakness halfway through the quarter, with its automotive business impacted the most as car sales declined significantly in China and globally, Peng said.
On 5G deployment, Peng said that 5G equipment makers were expected to resume rolling out networks in China later this year and that networks in North America and Europe would still come online over the next few years despite the pandemic.
“Near term, it’s a little challenged, but if you step back the only thing that’s been deployed is the first wave,” Peng said, “even if there are delays, it’s just delays, and not demand destruction.”
Xilinx said it expects first-quarter (calendar Q2) revenue between $660 million and $720 million. The company had revenue of $849.6 million in the same quarter last year.