Xilinx Inc (NASDAQ: XLNX) reported its Q12021 earnings on 30th July 2020. XLNX earnings beat analyst forecasts. Revenue for the quarter was $727 million while earnings per share was $0.65. Analysts had expected revenue of around $720 million and earnings per share of $0.53. The earnings per share for Q12020 was $0.97 while revenue was $849 million. So, even though revenue and earnings per share has dropped on a Y-o-Y basis, the street was expecting a much steeper fall in performance.
According to Victor Peng, CEO, Xilinx, “We also saw some benefit in Q1 from customers accelerating orders due to the U.S. Department of Commerce removal of License Exception Civil End Users, also known as CIV licenses. Given the better-than-expected performance, and recent actions impacting our tax rate we provided an appropriately revised guidance in late June.”
The data center group revenue for the company increased by a significant 104% on a Y-o-Y basis. Wired and wireless revenue group declined 33% Y-o-Y. Management attributed this decline to restrictions on Chinese firm Huawei. Xilinx has forecasted its Q22021 revenue to be somewhere in the range of $730 million to $780 million as rising sales of its chips to data centers drive business growth.
In other Xilinx news, iWave has recently released Corazon-AI which enhances the performance of Xilinx FPGA products. During Q12021, the company has also made significant progress in its DCG business. The company recently announced Xilinx Adaptive Compute Clusters to train software developers on its powerful adaptable platform.
Xilinx has also declared a dividend of $0.38 per share. Xilinx stock closed at $106.39 on 3rd August 2020, up 4.2% for the past month. The stock has returned 4.66% since the beginning of 2020 as compared to the S&P500’s 1.13% return year-to-date.
