Xilinx (XLNX) 24 Jan 182018 Q3 Earnings call transcript

Company Profile

Participants

Rick Muscha	IR
Moshe Gavrielov	CEO
Lorenzo Flores	CFO
Victor Peng	COO
Ambrish Srivastava	BMO Capital Markets
Blayne Curtis	Barclays
C.J. Muse	Evercore
John Pitzer	Credit Suisse
David Wong	Wells Fargo
John Vinh	KeyBanc Capital Markets
Ross Seymore	Deutsche Bank
Tristan Gerra	Robert W. Baird
William Stein	SunTrust
Chris Caso	Raymond James
Chris Danely	Citigroup
Christopher Rolland	Susquehanna International
Srini Pajjuri	Macquarie Securities

Call transcript

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Operator

Good afternoon. My name is Victoria and I will be your conference operator. I would like to welcome everyone to the Xilinx Third Quarter Fiscal Year 2018 Earnings Release Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. now turn would to call I Muscha. Rick Instructions] like the to over [Operator you. Thank Mr. begin may you conference. Muscha, your

Rick Muscha

Thank you for COO. and CEO; good we'll of afternoon. With me and quarter, Flores, financial business then and the a December and the are CFO Victor provide Peng, call We'll open and review questions. Lorenzo Moshe Gavrielov,

Company. These future cause information and that our we conference to contained statements. materially. We predictions files performance or Relations other projections to Let is risk everyone factors during call that make you actual important financial documents the caution in me to from the based may you documents currently forward-looking open Investor future contain our statements can be materially wish with including may and events our and regarding the SEC, that remind from could of identify This are differ website. accessed is Xilinx to the actual results refer our being It the results conference that differ call XX-Ks, today, or statements available or those webcast live. and projections X-Ks. forward-looking Company We all XX-Qs such is on

to Let me Moshe. call now turn the over

Moshe Gavrielov

say lead has Thank over is thank Xilinx have years. you, great accomplished. the Rick. final you Welcome past everyone what extremely XXst Xilinx to my the a Needless to and I'm what privilege and for Xilinx joining earnings Been XX proud call. team

while XX% margin the growth growth our very straight trajectory a consistent side, having operating on quarter delivered questionably ninth the On just revenue target. business we're attaining

potentially our $X.X target this of year. billion in we'll a that In addition, revenue confident we're make exceed fiscal of row it quite XX

and customers strategic we've Xilinx thereby world silicon the On and leadership to This from developing a in of much technology Programmable the to call our CEO expand highly multi-market by XX This I'm of front Lorenzo. Company colleague reigns way our solution enabling the my broader to I'm both All and premier stewardship. over technology has roots a traditional and very optimized to contributor to the the facilitated delighted our class capability. transition FPGA the deeper delivered to over turn at over three long-term past future software this Xilinx Xilinx opportunity the our generations years. huge of in success consecutive participate market. Victor operations confident under time beyond have success in I'll Peng, hand this

Lorenzo Flores

to almost pleasure to years Thank you I've XX been almost past for been the you work over here you it's Moshe as years. a with two and CFO particularly serve the with

Moshe Gavrielov

great. is That

Lorenzo Flores

to the we $XXX.X our Gross than favorable forecast, last day line which wish we up was ninth was of $XXX I'm quarter I'll the the increased December to ninth advanced Operating new Operating not on script sequentially well. consecutive X% year-to-date basis. the adlibbing. of in million. products XX.X% a increased analyst Sales versus we XX% $XXX continue and to million, May. million prior quarter fiscal margin was the expected. to in with year-over-year sequentially But record. outlined quarter record expense by you mix plan growth our our It's for up at more of back now. execute our driven sequentially than a year. for grew the XX% but product as to go months quarter were do higher X.X% in to a X% year-over-year Sales the Revenue the for X% period guidance income same was the and up

schedule. one XX.X% hit operating Our ahead margin of quarter

by was remeasurement in the XX% in $XXX.X and As of the of Jobs XXXX, somewhat tax tax certain of tax incurred quarter. one-time rate offset we the December Act million on expense and Tax Cut the impact assets a of This a US and liabilities the transition tax earnings of result or foreign reduction enactment of the to accumulative a rate. related Statutory

for per share. $XX.X $X.XX was million Our net income or QX

had comparison per For if in middle have been would our forecasted purposes range, the our been our tax rate EPS $X.XX of share.

million of quarter the shares the flow onto cash $XX.XX cash Operating $X.X quarter in flows. million dividends approximately returned to an repurchase average million. was balance $XXX Now $XX share. billion in million debt. $XX per $XXX price the and cash net the and sheet in We the cash our shareholders X gross during form $X.X or of We billion after with ended and million,

During nine flow cash nearly repurchases. returned dividends the the in operating XXX% of and year fiscal of back our months share the of first we shareholders form to have

As in invest continue and position will the on we to continue capital we to have our our to business said shareholders. past, leadership our in capitalize return to

and that $XXX remaining have We on our are program repurchase on million authorization. executing still share

in the share March ending quarter range the expect shares. be of million count to $XXX to million $XXX in We diluted

be For and sales we're between quarter to guidance, $XXX the million. million in $XXX expecting March

Our consumer to also the up markets and quarter to A&D our is expect data and and to expect backlog flat. up. in regards is expected automotive communications be products. advanced strongly continue be we to growth Broadcast, end will grow. center approximately and as we With begin we Industrial

also volatile, auto this. amount consumer growing. still a as more durable Victor explanation. larger will it business. currency are business and some will broadcast become treated driving has fiscal the about We've as emergency more in bear is growth significant growth though talk markets of This potentially end in this QX set consumer has it from crypto A While which and be of

will the approximately XX% to gross quarter XX%. Our be for margin

expense to operating decrease $XXX million. to expect We core approximately

recognize approximately our CEO However, in one-time we transition. million this will quarter primarily related through $XX of expenses

Finally, be rate for impacted and Reform our expected to quarter as Tax tax by X% X% this between is the Act.

on to or us we're that all track parameters. quarter Our fourth operating meet to indicate guidance financial year-to-date our our and the annual guidance performance on for exceed

the now to Victor. turn Let call over me

Victor Peng

tremendous emerging at. and is Xilinx Moshe amounts I lives. all your capabilities By This both will machine an pace it of my an processed and you, stay I'm has well compute data to Enormous and capable impact shouldn't and optimize my outlook the I'm on era grew And we blow thanks our Good Thank and and the I this this honored Lorenzo And stored you, my first XG both in taking established value. delighted company well presents to values platforms about and autonomous this call. to be require Applications add because build but a potential. like take In and for of this would growth demonstrated presents our a in position. leadership quarter. fortunate of maximize Moshe to everyone. to unique excited is quarterly like we've XXst December consistent applications position adaptability. as right delivering people's first. our promise script the make call. time created, shareholder only assuming intensive going on execution traditional my dynamic the technologies Xilinx's comments sincere and where I'm Tomorrow's with areas to unique being the to to afternoon, earnings company with the this Xilinx Moshe. be on [ph] with learning, December our extremely truly computing to of particularly unprecedented delivering and acceleration not focusing opportunities and on Revenue you is enormous are probably And law Xilinx. leadership to said strength. I'm storage I'm markets, acceleration, great showed. as quarter million. the position, opportunity a have in to such help quarter driving and truly ninth pleased and very March industry. as results. wave revenue records next create the quarter as very with $XXX for consecutive Morris of on speaking

Additionally margin better margin. ahead exceeded quarter one expected gross than driven our our of by operating plan XX%

customers. increased nearly of wireless from consumer efforts unique revenue year-over-year. With significantly of products records. industry XX% multi-market our delivering products again now Revenue XX-nanometer the year growth XX% revenue markets SoC XX% in technology This our approximately represents by our from end driven our from success sales in node Zynq X,XXX sales category and portfolio a now XX% Both in to was and platform of industrial, had and all products. quarter XX-nanometer XX-nanometer advanced quarter from XX traction expansion our again Revenues and the up quarter. with the and platform Our ago ago. last to our we're XX% overall This an year established element market. our significant these automotive, XX% grow increased integral has sequentially significant leading March expected overall is

regards and finding that our market really products future noted, volatility being do success We're sales cautious and ago mining and system. test was Lorenzo million, growth emerging sequentially applications. With year As anticipate product crypto had this customer of support XX% both growth of to is in by the $XXX the increase this while fit driven some finding we capabilities With currency industrial, record. of and the about need the the end and segment. of our quarterly aerospace emulation semiconductor defense another markets quarter. X% markets an from This

has this Our driver performance. significant revenue a very been leadership for unrivaled setting technology record

storage as recently we're the our opportunities a announced Market plans specific data The continue Service. FX These And in data the one using expansion in Ultrascale and to momentum strong to acceleration, FPGAs for seeing market leader and two Xilinx strong opportunity. workload be long-term activity Our plus unabated. compute of beyond of center mix. key medium center public eye, FPGA. FX generation smart Alibaba continues

expect forward another by million our record If growth to this achieve of driven $XXX advanced product portfolio. to sales the with quarter, is Xilinx. guidance again of establish we million will our to we look guidance $XXX we continued be March the As

will mention, as our XX% and QX Our quarters confidence and for three of goal we a fiscal we of exceed reached [indiscernible]. $X.X us plus our guidance already through the overall gives revenue XXXX quarter that the plan we year margin our billion operating performance

to turn over Q&A. the operator back for it Now I'll

Operator

question from [Operator comes the Srivastava Instructions] Your BMO. of line Ambrish with first

Ambrish Srivastava

eye-to-eye I'm always as us not always very adlib Moshe. for here, gentlemen Thanks going treated to And but being years. these seen you a fairly. We've

the jump you, next that's target seems the case luck is that good the my margin So the as the step and a been How and model. of question on for also like up about a it FPGA think for Service forever sustainability kudos hitting you're increase innings. should given but the in the Victor. and and next we Question in more that and node also spending on on

has help basis this confidence been for a just bogey a understand on that been that consistent us So investors has how Xilinx. have should illusive

how about we you. So should think Thank that?

Victor Peng

a but factors, factor of lot a is has that mix. big margin, gross a from So

of terms in came segments the So segment really generally which we strong very good had in value. have growth for out, the way we

doing lot Of course it's we're COGS that, forth. more a so of complicated the and for controlling there's things

I would the we so but, So me, can of say that's at obviously margin. was margin level terms referring to but true absolutely gross operating in that in margin terms operating all of I excuse

I also investing careful being think the been where mindful of see gross and very about returns bigger we on we've where margin are line. we

I think absolutely at that would a XXs do we investing into balancing we so. we're look by get things that to aggressively give and right. we return be give return I how we'll other the We think shareholders, upper going to of XXs range So those the places up want and further generally to the if

Moshe Gavrielov

ramp on guys which out a going I this. with other in earnings guess Ambrish, traditional think on I'll We're for the outside So little future. to specific I'm our then financial in detail QX some to bit - tax help stick at analyst going providing and day. guidance of maybe to of more I'm our you our cadence initially We're going call questions

to we're the I I fundamental to apply, the the Which So it principal mostly is Victor kind company we both be and laid shareholder. the return manage of continuing we're that and right? will to what in out think investing

Ambrish Srivastava

think a hear is is us as the to which reach from the hoping that's And and help the point you inflection you're about was to fund you, I FPGA you're piece I will scale reaching, that given what model, Service think that that. on I have the

Victor Peng

term saying I'm the I opportunity. in a question. answer perspective more mid-term I didn't we've revenue longer of pretty even a think mention, the consistent piece Service sorry I that been as is a Look FPGA didn't one From that to very data opportunity a center. also in segment material acceleration And only state. is segment our in of a FPGA is of not only out, Service point yet which as the is compute one that

but consistent have in think side. been compute opportunities the networking side saying only and we not I the in in storage we've pretty also that, many

that of think connected So your to operating I less sustainability a margin. question regarding the little

hand, we the of is the side on think on if the our operating other the do of seeing returning feel invest again to to there you're think there we margin have and ahead mindful I like we to is legs plan right right achieved shareholders. goal do but that we'll strong do the thing be growth, we'll value always that good ensure [ph]

Ambrish Srivastava

thank good luck. Okay, you

Operator

next line Your question of from with Barclays. comes the Curtis Blayne

Blayne Curtis

here. frame lot. Moshe, of you been driver in it Obviously just could about Maybe getting December just was I how the the March. if best for in and if and segment that crypto March that's big of wishes just much currency big the kind can is talk for adventure then consumer outlook is wondering on your about next how driver a the a you talk bucket.

Victor Peng

And glad Blayne the like we're talking flag volatility flagging and like not you this about wanted right. mention is that. to say We been not lot it we're because is in this this the of again because - the fact there's here. millions. a I'm because It's asked kind that of growing GPU materially that Lorenzo this however even of a and both past has of below really size I in you to heard tens exposure enough

magnitude. you new it's is negligible not we're thing. wouldn't very order and something of we're it we totally give I to volatile because you it's not just emerging model, So It very - and right now something suggest mentioning it's that's try but and

Blayne Curtis

Okay, thanks.

Operator

Your from Evercore. next line the question C.J. comes with of Muse

C.J. Muse

at Moshe - look kind my that as pleasure of about you start a your as I'll and for terms you guess beyond well. and you you XXXX. the into to as through to investments working R&D to thinking to with and think congrats, reform Victor, all does one, with change all head that if first maybe tax first of guess access cash, how fiscal congrats in working question I project follow-up I you forward

Victor Peng

It us there model. impact think of on our is tax operating a comes don't reform for into terms from I order capital in mostly first allocation. play

flow profitability So regardless think very regardless quarter-to-quarter very high of generation. of reform I tax maintain and and highly the specifics cash we'll

a uses as see basis. freer So primary tax as is the we benefit reform of on cash global

tax we'll can the talk about right we're more detail so payment, impacts the on term analyst understanding we influence we and allocation, cash it that use some some of now there capital again will day. into longer think that is to of order still the we're because I out second do future on at what as or reform detailed best aspects modeling we'll that impact probably in that works that's our more and of

C.J. Muse

and Do you or your analyst or a the day? rates gap cash for something of that's sense have tax

Victor Peng

okay X% unfair to X% considered think actually that. now totally said we next caveats any to I the forward it this, be you with one but and as not it's going understand guys XX% quarter XX%, between you it's past leave We all guidance Like wrap be to the I quarter should XX%. around rate Sure. tax right our and to say

the like experienced in much we pretty So recent past. had

on caution regulatory in the now, right out but as So of best can without technical but aspects the changes guidance more comes not get. now potential that's obviously right some it's we our guidance that, it's best for different

C.J. Muse

you. Thank

Operator

Credit Suisse. John Your comes line next of the Pitzer question from with

John Pitzer

greatly on to margin Thanks the the And helping sort Xilinx for really the appreciated. XX% I to that the side. want sentiment. can question help in the guess gross focus above follow-up This mix. you've is corporate echo model time of side. only our had I that in is Moshe all on history second margin and margins the importance of my I I'll years, the understand through understand I see Victor gross -

So just what more your me from things help I the of is, understand against the And to I the the think we that of happened one importantly given quarter in apologize a guess your - perspective overtime. lead address, being rich. should guess this broadening you you mix question can part structural competition for and upward margins can continued why is XX% no gross The caveat margin. have of a that applications broadening number there biased on shouldn't that one to make gross

Moshe Gavrielov

for that. Thanks

Victor Peng

thanks Yes, for that.

As where one of delivered what where the recent data digital for cost, class done creating about I said are things. executed XX-nanometer Right. the we RFSoC, said the talked that we lot saving whereas integrated most well these instance a really process. all weight on oversimplification. Look was but because I size, not products, our one our we've Where value, customer the and that's mix only we've RF monolithically leadership we hand, converters power, innovations

the by capacity of some other And the larger areas we factor. have

levels So part and that be to There is course just and you out of have you to creating right. is of top that, margin, get mixed is, value the and on right and different execute forth if segments that you're value. you do so and different you natural piece of also this the get of going natural then the factor, got

places is of get you're challenges, if in extent instance but play defense the that so play value. that can more course we and consumer crypto side, currency general value we and more the leanness aerospace So to in delivering well forth for price other you margin

can become and would up doing and think change have variability that pick will that always they the So when that certain very have you think value getting competitive that we're the but They we that we're course. market and get value strongly agree giving and can you on you innovation products markets hand does solid with with know I and leadership and customers, gross to and that we're But innovation I the that, generation in one mix. ASPs is what certainly of continue to naturally if and know in the we more they're with margin. variability good you have our then

Lorenzo Flores

The had gross one and approach remind There I long solid the does improving we're to not of a gross legacy we've only quarter a now are strong decade But those very of it and where said gross It's in you're in know shift think under margins to reflective basis margin. before. just markets expectations company the is markets just all the conversation on mix. in the of of competitive this Victor of focus margin John, our with us I nature consistently it, provide as markets on in places for lot pressure. consistent cost by you

So yes I saying aggressive. probably keep it's a have little basis we're firm a we think while growing it,

John Pitzer

about specifically such what quarter mix Lorenzo, And tailwind. a this was

Lorenzo Flores

our we So we mentioned be our happened from had products Moshe newer those actually the and both advanced which value and for product which measurement particularly an end test industrial products we can also good benefit aerospace, growth defense provide to the the generally structure. uplift markets highest business in our uplift and had margin and in general, provide, and Victor the provided emulation

John Pitzer

very lot, a helpful. Thanks

Operator

comes line with the Wells Your Fargo. question David from next Wong of

David Wong

overall how in script. my much year-over-year? from fill carefully crafted you automotive revenues came automotive Reading was that percent off on and Can us of questioned what

Lorenzo Flores

little year this of and but We was of I is and we had measurement think than and somewhat point going year-over-year based Zynq forward. a overall still most is business up quarter that ADAS a last related in it of the more seeing sales. that's are in anomaly. bit low of of of us ADAS again around Most growth XX%, for little Auto the a auto on X%-ish order

David Wong

Great. Thanks much. very

Operator

John with question comes of line Your Markets. from Vinh KeyBanc next Capital the

John Vinh

and area in, your be sort slightly Moshe comment to between luck they're in in Good Victor, that you new question you're expecting you you guide if role. of maybe that if it terms on as comms seeing where came on comms you trends what below us what of you, source color you're up also great. like but of kind comms so around seeing. demand give My you wireless is of you're to could of could last wireline, some out It TI weakness call night March, did there congrats and looks seeing will what and wondering heard a be

Victor Peng

Sure.

So wireless up some. is actually

we've there. prototyping the times pre-XG mentioned some so think virtually we growth I of several we're saw that all

We in look some strength products, slowdown in of the deployments of to also probably be and wireless flattish. will quarter back XG see we we saw current be about Wired mainly wired deployment some some India. will some due when that up but at

John Vinh

Thank it. you. Got

Lorenzo Flores

It's with inflection will XG we've wireless not saying, point. the inconsistent around we bounce level what until been this see

John Vinh

M&A a the a and activity how more starting does ability repatriate. cash Great. on proactive really opportunity tax follow-up that of like And sector to us bit M&A. seems One the Thanks opportunity activity an you pick little reform like remind and an had give can up. up to question in in it be seems terms I will on you to is could M&A also to with much you repatriate pick offshore have seem front. cash the

Lorenzo Flores

me So more question, specific take the cash first. let the

pay for eight is can the move is a think the our book M&A. Pretty I think for which is, tax about years. the is most the balance way over much after to we structure easiest elaborate free right part transition deferred number to about it the the cash Victor market situation now because on world.

the cash but assessment won't in disincentive cash use we're that's at utilization gross cash billion. economic be penalty it foresee for doing than part seeing maybe of cash we've We or on past, there billion [indiscernible] $X.X the tax it. that better restrictions that tax put any on will this doing anywhere be anywhere. have We'll ongoing which in world So on higher sort cash $X.X a overall limitation or so don't of deploying basis of to experienced net

tax of reform for good that's news So part us. a

Victor Peng

and and what maximize shareholder all to is so what a Ultimately that the option. accomplish it and tool financial add, M&A M&A look the sort could the consider if you goal is is thing as of On is that to say way to focus many objective M&A viewed the at would that our we want the trying that strategic as the with we considered course I along along our value goal. that to obviously further are be other concepts our side option. options and and then that is think But focus about would main strategic in sectors with I be we're of

on that call, this Now clearly kind this isn't the of time to about vision. talk

there think in bit I quarter direction have later opportunity the in a we'll talk about where will be time the to more little vision.

Operator

Your comes Bank. from next with line question the Ross Seymore of Deutsche

Ross Seymore

to congratulations and I to Moshe want the Also Victor. echo

on the Just follow-up splits. market wanted to end

You given data side guys what basis it's what job by and with delivered been range, those and big done guidance for very but well there pretty sounds a a but sequential segment beat center aerospace annual consecutive think guided helpful you some great and well growing between deltas the nine comms this year I on industrial, you're it and the guidance quarters you being you've and being going defense fiscal is above. for have to the is your like below

duration with and originally surprising being trajectory. versus what those all question thought you the said the is what's in guess So new two the that I segments was of what

mean the week think and side phased You on in one revert the strong something [ph]. is it's other this in or

Lorenzo Flores

markets to sustainable. of to being being like The The business year. broadcast without be are direction forward, and we as could characteristics consumer you've markets some bouncy automotive later and we the and about their said with us includes industrial collectively markets. We're that specific the industrial But as tough predict very we'll been and track The a the good we A&D in much not and and with. as that provide is wired talked I ADAS was automotive those seemed this we more I as the driving about, on think this to platform that wired see go thought, upside is now not talk on true and applications our end is currency think the characteristic the, which are Wireless, the where across initially to continue very And emulation. think going so partially board with and the XG have we from to I underperformed sentiment we point and but good I in we versus as A&D we're because that crypto same have of as which that from gotten data surprise data year defense to broadcast and and center and wireless we like and until earlier primary future. it look thought going applications position wireless, measurement industrial, in strong center thought and consumer wired see the pretty basic about strength maintain that's end to maybe test still market with pleasant we data So we still automotive. slow and flattish growing up communications as for is aerospace then automotive center strong and in downs said growth.

Victor Peng

surprise to I'm add little do is not and emulation. applications. that certain is strong just that's going I and just? - definitely we I that a Can measure that has been I something frankly something is a want see and been to strongly test A&D that not continue think

expected, I we little be to but say stronger surprise. maybe a than a I strong is wouldn't think we expect it's

say break we anticipate if the bucket you I that just I very a that lot overall agree, also things I don't segments. these mentioned think that strengthening to down Lorenzo my talked mean see as of would think happens said didn't you that in sub there it talking Lorenzo about the I think of by comments we're in multiple other shared I single platform some segments. want strong if remarks a across We I multiple market. I is that but fact growth of that also good the growth is in that right, I we some sell general also in about

we've and definitely are there areas think where I we been sustained. seeing that So see

Ross Seymore

you. Thank color. helpful That's

Operator

of line the Gerra Tristan from comes question Robert next Your Baird. with

Tristan Gerra

many my also join new congratulate of achievements Victor both significant on peers and role. Moshe on your and I'll years

is such it based we based that so small more could is overtime. as to of can fair should and us XG Regarding cells field ramp content this little ramp perhaps be on [indiscernible] view and versus if lower assume potentially base going the when higher more unit test being you as station bit to become meaningful you more beyond a a but XG refresh think opportunity

Victor Peng

first. and Let me last answer that part

we there and we've really think I see ramp really then I going XXXX that's saying in is and out. concepts timeframe. of course referred just early the of proof mean in consistent some got but product getting RFSoC been XX% also I those of to early now we've and So on pretty approximately pre-XG like the in things the disruptive more

small terms other transition [indiscernible] infrastructure architecture start a just in it's Yes general very kind say really wireless I deal me part small that's of moved wouldn't MIMO mean but of not massive but first technology it's in different trend in that infrastructure just Now to And adjacent something cells. to I it's only RFSoC very being even that a so with it's cells. of is that really to right. think I any of that? applications, that's is then XG, answer cells a in and of across in that's types range with so your small something not RFSoC in regard, that right a way the is the let is large that and the

People we're the and we strong see this meaningful would but position with general ramp revenue there as at the in to point. timeframe into production good momentum, this is year. So are I in it's very design goes more as really that seeing not again just but RFSoC starting great that, far XXXX in a say calendar

Tristan Gerra

Okay great a and follow-up. then quick just

So two more that we at want [indiscernible] it that of see point a the a forward year may and timing potentially look ramp, the quantification the had or a for there put any this you customer. inflection next to from data center which gets and looks of like at millions should tens bit, this revenue year for for [indiscernible] fiscal we out pushed target how is you little

Victor Peng

were of you referring to could the pushed sorry on millions I'm you? out, tens being

Tristan Gerra

this had somewhat that ramp. put place of target in Xilinx I a in data soft of terms think was that year fiscal regarding center

Victor Peng

kinds see storage, what of been data that, larger part center all of The right, past only data portion the overall. Okay, say still is in that I the mean is deployments revenue the revenue I of the would actually again our storage in largely not first in we've traditional of I center. but

I as mean think is that think referred really smaller this in discussion about, the that number millions, now you're early it's don't revenue the is talking what a and to the targeting so emerging that you're and I push out. that's, in I we FAS about see those of the forth. I probably part tens still

we're getting we've the is think I that, this an ecosystem period the much saying been and pretty and building out where consistent we're forth. applications, the infrastructure in we're so tools there, building

and XXXX, since they when Just that's Amazon re:Invent fact accelerated actually many and deployed just had they of didn't of deployments, or are [indiscernible] in just FPGA there three perspective back again past online They the announced that announced think as one XXXX announce but until they a this in including first have regions. April, Amazon XX a Conference which we to now just announced are online. November going that start coming ones to US November. total even I have now of region, put region GovCloud this the secure announced were In time but FPGA it five instead the it, They them the FAS re:Invent the that Service. had in Conference

getting good se, momentum engagements I the I'm think on that think deployments I that we're foundation difficulty]? out This perspective. out push these applications, getting don't and trying talking there about building the [technical is revenue see per all about the to going. that just big not where this infrastructure, is stage is here building at that, the and applications very that it's growth. it is suggest the again I a seeing So and getting Does what we're

Tristan Gerra

Very useful. you Thank very Great. much.

Operator

William Stein line Your with from the question next comes of SunTrust.

William Stein

congrats well. to my as Moshe again And

help will could the commentary crypto helpful. be you understand If on us it

[indiscernible] demand Thank think trends saying marketplace. market position durable you're about in maybe sustainability that something that Specifically that that reflect it's you. in there think or or sustainable, more you something you your indicates is

Victor Peng

that The crypto sort what one so hard change is, things much it's volatile so currency some situations to in and sense extremely in that is predict. happens I that think of A;

we as continuing, that of for are see millions, we also of the of tens see these of that we've though had support level do but terms kind do revenue providing In sustainability see we said, we customers. in we low revenue the

secret and not there for GPUs. doing ASICs there's custom much so that involved also using they're it's this people Okay,

are see in there we in nonetheless exposure, and of some bigger just where why they've had gets point it Now things change don't saying, of it not right? we a dynamic the to cautious kind the the lot is different that currencies of we're to because of has much so have with flexibility really but lot a don't But here flip space of there what volatility different multiple you that because very is to we TPU very to is we rate. read here that value. we it's want it's situation and happening, reason lease and but want a the to press, why the do gotten Bitcoin over have That's

Lorenzo Flores

future understand I said bit we're business, plans and book. any line products. any sight potential better durability as the demand sight something business it, we didn't in saw of macro we was cautious what business we really what of going to little future the saying now to the I drive when comes again the was significantly these line of small think from it's first but that's what it better, currently a their very path some after was the customers working that then about core the grew for we We when closely keep of it I have by with these but because that point are have and factors

William Stein

you. helped. Thank It

Operator

Caso the Chris comes line of from next question Your with Raymond James.

Chris Caso

seeing The the business of time. lead and seems visibility have to it perspective how are function question that could now, explain you about dropping you gives where is before the you're both revenue turns for a you're product what times that steadily [ph] turns seeing if that been lead basically relationship percentage

Victor Peng

plan that's really appreciated one a on of variability from way any about soon help of the does us them. just our not it We more business but have it the the business don't it does that to effort will customers be we're get making us as on we deliberate us if to time it and to can things downside us, our trying I and orders to say support ever occurs. have the and be lead ability some orders We help the book. the which book function the actually and drive continuing get - issues as to this always do it's drive think

Chris Caso

Thank you.

Operator

next Your Chris question the with of Citigroup. from comes line Danely

Chris Danely

the your rate relative Moshe through went the three in markets if thanks there. for just you the main guys [Foreign could don't run know don't into quick. caim years. calendar guys. if you growth expect real end those know That's know you sheli. for I over if you years, Anyway. of those for I don't Mazel everything who Hebrew Tov you out Language].

Victor Peng

quarter. or said I'm for calendar last the year the sorry, so you for

Chris Danely

year calendar this growth what's relative expectations industrial and broadcast. your For comm, between rate

Victor Peng

I the where that industrial, calendar that in in we to quarter. year of but I for think we're strong be guidance on basket. I give see the the quarter, a we call will that aerospace, quarter very that for definitely don't I want now this in, mean A&D see right. mean But overall the terms

holding AVB up. the think will I be and consumer auto slightly

Lorenzo Flores

and fiscal we'll the so guidance think Day. first that over at so quarter with in third the end I mean quarter the more But quarter I Analyst quarters is year fourth guess this had next this current year for my completely do the well year to Yes, reference three for earlier. then I with piece the in what quarter Chris the at calendar and of respect I guidance

Victor Peng

pretty Yes, fiscal to I sorry. going year. I'm was talking strong fiscal was show growth. year which I sub of segments about to this was the referring

Lorenzo Flores

But and time that's set little will about that's aerospace slightly got emulation. The sorry communications we that. test data we've question, and on about growth quarter record and that. the up automotive your so broadcast will up a where Yes, right measurement flattish from and offsets aerospace and defense where actually and currency two business bucketed and industrial be more crypto relatively the market will the the the and I a center performance business spent horizon setting and segment end I bit and this consumer bit now both little end think we're explaining markets as be the decline for confused be industrial, time defense

Victor Peng

quarter. for that's And the

Lorenzo Flores

For the quarter, yes.

Victor Peng

would were Sorry, saying how I when thought we the you complete it year, fiscal look?

Chris Danely

wait the guidance for for I'll long-term the Yes, analyst day.

Lorenzo Flores

thanks. great yes Okay,

Chris Danely

guys. Thanks

Operator

question International. the with Next Christopher Susquehanna of Rolland comes from line

Christopher Rolland

on Victor Moshe a Congrats the on career. promotion congrats and great

So I first. Victor wanted just clarification

last quarter at millions and quarter for here. then I weighted heavily or this the most low crypto for that's auto growth. said from job also full growth year-over-year And what and of So asked per you assume year great consumer Thanks. Dave was tens growth about the And But XX% here. there. know consumer growth I auto, and broadcast in already broadcast was then

Victor Peng

how of the up kind terms we general of you on was that that when like crypto of know kind actually to sort in year, year order said pretty said basis, it, a ago of a guess very I from in for low quickly, number quarterly you would that the virtually like whole from came was tens a in currency be of came it zero. but that so

in yes. for you it's so is the is but stronger the Yes, order that to year magnitude. it recent still part know yes, be the in first of answer So quarter

Lorenzo Flores

business, end predictor data some around of just but that and substantially way a more I business markets aspects up you had future are other because anomalies that consumer business the the is is as up the that wouldn't So on use there bounced want of again the historically. AVB of the order the think to XX%

Victor Peng

something we that in the you from that see on that it you the as a is when essentially zero markets. after Again in other some emphasis we in again that crypto quickly that opportunities consumers the doesn't we one have know general hand flag. And flagged of for because opportunistic more kind the other to of definitely are we wanted have very to certain go us, became -

Christopher Rolland

you I leave anything certainly on understand don't want table. to guys. Thanks Yes, the

Victor Peng

Yes, we that. won't do

Operator

Suisse. John follow-up You with Credit from Pitzer have a question

John Pitzer

having balance what Just little a availability any we this sheet. or how thought quickly I the a for and I were new have Inventories would expect the should than that. quarter Lorenzo more know on into bit about you. up should norm March you so inventories, receivables about we are not Thank issues. so Is think talked just going and

Lorenzo Flores

there's our we inventory think area inventory and We've In I was builds. ramp and I dollar the that getting particularly just I actually in the think think specific Again in past we're wireless for business that inventory will grow that was broader of value see in ready business. anticipation had case, the see but strength one for you quarter to had higher general in a of last products generation. market we our end advanced focusing support was our general that

a high of should in what as relatively actually and but on is business purely down timing and others drain you is the couple payment in seeing reassure consistent that's times have shipments and AR, been we a a driven told is see growth will a all market. by and it grows, thing. I build on again up just the the it during how will consumers the what that quarter story and high issues so collectability is take I AR, business. with I've patterns. it just bit periods it's a you'll quality this it bit, no the the think On inventory little little will we're It quite So number depending

John Pitzer

guys. Thanks Perfect.

Operator

from comes line question with next Stanley. Joe Moore Morgan of Your

Unidentified Analyst

Vinayak for calling your Joe. wanted follow-up in to is on ADAS This I business.

using seen you traction product. where for have good that's one Now space

could applications at you your how look the going [indiscernible] what of applications customer your overtime design and happy and when just most So evolved pipeline, and are sort discuss forward? you ADAS

Victor Peng

I been have one automotives of has that ADAS is the mentioned areas as [indiscernible] we Zynq again strength. for

way, the already XX-nanometers quite standard, all by next part the they most there this for generation the ADAS market activity been keep raising is so for safety bit the ins and requirements the a the right up, For and design is keep right going course ADAS. of

activities driving of driver the us As to design earlier wins development lot in more that set excitement assist move systems and and also these there evolving a whole of natural fact to so we autonomous frankly events things knows towards are systems a advanced some relationships, driving, autonomous sophisticated or assist is along around earlier and ones driver the that autonomous from everybody continuum levels have that driving.

our some the So architecture we're sensors, yes so sub we major aggregation participating unit, have it's that we're and I forth. of all of meaning the because think entire points that we're we in flexibility definitely the of evolution the portions of central in where participating have [indiscernible] like engagements

good, and think engaged definite one we're there So well quite we that's of traction. very yes, in out think good areas the

our well. in generation MPSoC XX-nanometer as First

Unidentified Analyst

helpful. very you. Thank it Got

Operator

have You Blayne follow-up with question Barclays. Curtis another from

Blayne Curtis

I for the on just to follow-up guidance consumer. March want

and strong between in segments unpredictable could the it's the seasonally up maybe the but at look color automotive double just March you it's kind path sequential of because and should of typically sometimes we just had you business your strong up Given like said kind [indiscernible] growth larger if there. get is digits currency. trying talked how obviously understand to has seems I'm crypto that about be any

Victor Peng

as low the will will substantial AVB out. That's pointed grow percentage sort just market Both single-digits. of basis, the in grow the more in consumer you and a aspect end auto

Blayne Curtis

Thanks. helpful. Very

Rick Muscha

can one we more Victoria, question. take

Operator

Certainly.

the question with come from line Macquarie Srini last Pajjuri Securities. of will Your

Srini Pajjuri

again congrats my all over echo for me the your help let years. thanks Moshe, and

Just a a you but CPUs quick sit question to them. make do I don't next know of guys lot you

near any impact know directly the curious any other, Do and with Just the or if from term. indirectly the one impact those you're and or if expect recent issues issues? Meltdown you Spectre security you seeing way in

Victor Peng

lively I know topic. quite that's a a

FPGA know from Programmable in integrating lead license as Of those and we All industry ARM. the in we cores RMSoC so into course you

that and believe we the susceptibilities closely work any there of according implementation ARM is We we susceptibility say to of meltdown to I'll is very the we cores information, Arm one it. that So is, absolutely aspect with specific no from don't Xilinx ARM. know the there that of license

unlikely Regarding that's that's there will MPSoC Zynq of that out however if first which the Zynq do Spectre in highly exposure known having susceptibility that. most that our to there the in And be we point systems. use closed A-X generation the of of there of has SoC, that, no Cortex XX-nanometer and ARM terms some embedded I'll customers case the of the terms is and possibility

addition if unlikely. that is authentication, they user get, of same if security customer exposure does have then to features kind thing code also In gets the are use highly something exposure there that

we're anything any customers ARM or working haven't we closely from We further very closely heard news and monitor mitigation. on of with but that course very

round that Spectre. to out know the we've Does so that? there had Microblaze Just either our in basis, no vulnerability the that proprietary no is is the there way the SoC vulnerability [ph] by processor. simplistic We or is of embedded there in architecture Meltdown very

Srini Pajjuri

That's Great. Yes. it.

Rick Muscha

today. for Eastern call thanks beginning Time Pacific us Well Great. X PM Time, joining have this playback at today. X of PM a We'll

release, For Relations our earnings of a please Investor visit website. copy our

The March this Taiwan San we'll City will will following hosting you also on to quarter: meeting Sachs date XX. to fiscal the completes Internet in Stanley please in you XXnd, This Wednesday, and Our market for Technology fourth and be many we after XXXX save much Also May and very April call. the Conference there Thank the XXth more analyst in our do next in and The San seeing York participation. for February details BofAML APAC Conference be quarter earnings We'll XX on in forward date be February an conferences Morgan New your year on XX. the Conference TMT close. release look have follow. Goldman Francesco Francesco the attending

Operator

conference This concludes call. today's

Thank You may you for your participation now disconnect.

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