Xilinx, Inc. (NASDAQ: XLNX) stock lost over 2.5% on 25th July, 2019 (as of 11:06 am GMT-4; Source: Google finance) after the company posted mixed results for the first quarter of FY 20. The company had resumed some sales to Huawei Technologies Co Ltd but forecast current-quarter revenue below Wall Street estimates, citing the impact of U.S. restrictions on selling to the Chinese telecommunications firm. Non-GAAP net income grew 29% to $249 million. Gross cash was $2.9 billion with $1.2 billion in long-term debt. Accounts receivable declined to $306 million and is at 33 days. Inventory increased $21 million to $337 million for future demand, particularly in 16 nanometer.
The company did not disclose how much revenue the Xilinx derives from Huawei, but said no single customer accounted for more than 10% of its revenue and that Xilinx has cut its sales expectations for Huawei by more than half.
XLNX in the first quarter of FY 20 has reported the adjusted earnings per share of 97 cents, beating the analysts’ estimates for the adjusted earnings per share of 94 cents, as per Zacks Investment Research. The company had reported the adjusted revenue growth of 24 percent to $849.6 billion in the first quarter of FY 20, missing the analysts’ estimates for revenue of $850.5 million.
The continued 5G build-out drove the growth in Wired and Wireless Group, with revenue expanding 66% year-over-year and 2% quarter-over-quarter. Quarter-to-quarter, wireless declined slightly and wired grew. The broad customer base drove this growth in the quarter, although less than expected due to the Huawei shipping restriction. Revenue from the Data Center Group was below the guidance, declining 13% year-over-year and 4% quarter-over-quarter. The company showed growth in multiple hyperscalers and broader accounts, but the Huawei ban did have an effect on DCG. In AIT, all end markets outperformed expectations with strength in industrial and less than anticipated declines in aerospace and defense and TME. AIT grew 10% year-over-year and 2% quarter-on-quarter.
XLNX has declared a quarterly cash dividend of $0.37 per outstanding share of common stock payable on August 27, 2019 to all stockholders of record at the close of business on August 7, 2019. During the quarter, the company also repurchased approximately 3 million shares at an average price of $105.50 per share.
The company said it expects second-quarter revenue of between $800 million and $850 million, below analysts’ average estimate of $852.5 million, according to IBES data from Refinitiv.