XLNX - Earnings call transcript Q2 2019

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Operator

Good afternoon. My name is Erica, and I will be your conference operator. I would like to welcome everyone to the Xilinx Second Quarter Fiscal Year 2019 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 Poirier. Matt Instructions] like the to over [Operator you. Thank Mr. begin. may you Poirier,

Matt Poirier

Thank you, We'll XXXX. good quarter, and CEO; and Erica, the and review the and Victor me business for the Lorenzo Peng, business are revised outlook Flores, December the outlook CFO. of provide for financial afternoon, a September everyone. quarter With year fiscal

the We questions. for open call will then

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

Relations facilitate supplemental company's we financial to is posted been management Investor webcast website. related our from reconciliation is last quarter’s earnings being certain financial to unusual such items company's closest and analysts ongoing has as measures, items, live. used and of measures to included all evaluating call, information This intangibles to measure measures As the financial the the the we sharing analyzing and results. non-recurring will certain discussed continuing conference We and these period-to-period in of one-time non-GAAP our investors Relations financial can for purposes We measures Xilinx comparability that helpful It to believe for excluding call our non-GAAP amortization be these be website. disclosing core of business. business A operations, addition accessed evaluate is to by open effects by be release Investor GAAP earnings also in will acquisitions. and on of in in GAAP non-GAAP provide

turn Victor. over now me the Let to call

Victor Peng

and in is are very of to that on excited well everyone. results our strategy returning our executing good Matt new FYXX original Thanks, ahead report afternoon, I'm plan. that

year-over-year broad a have our non-GAAP with XXX and strength growth in EPS, the six markets. million, core QX the ourselves up of in of new up in our record We revenue nine accelerating in drove business quarterly of our XX% resulted which and growth Establishing in XX% center year-over-year. markets data in out end is

first our FYXX the for continued Given half billion markets, to we're be raising guidance between of FYXX we results near multiple in to $X.XX our and $X billion. strength term see all

feel carefully. we this Now environment watching the clear, the forward macro are be very Nonetheless, guidance. to is appropriate we

let share So some business recent me highlights.

communications So, some pre-XG and early LTE XG very strong was in upgrades, QX, by deployments. driven

baseband shipping grew Our wireless with we to broad and significantly multiple across ZTE. business and geographies strength both with applications radio major in resumed based OEMs very

applications, several to deployment. acceleration access companies business data to interconnect. the OTN hyperscale including next and momentum continue build In we in wired and segment, generation grew due center transitions product data to Our with customer Metro, center

Forum general coding platform our SSD the using how FPGA for their format, announced streaming year-long Day a new our live on a first FPGAs. their Samsung’s with at their of XX-nanometer to on a storage near Amazon, regard between occurred in our Alibaba China London, smart FAS availability Twitch, at Amazon access. access Web four the and was accelerated their Huawei’s this their Services product, June. Sydney, combines companies. position Tech X smart market leadership plus recently, falls program So FAS expanded, ultrascale Frankfurt, of our FPGA And And FAS, which Samsung zones all doubled the computing their general as collaboration adding SSD example, access most to VVX China. this shared industry’s quality and X, recently data. to that with subsidiary changed past and Developer’s technology achieved broadcast as a they video result from leadership With for accelerating store our beta service

the begins servers, Now FYXX. will very we on-prem a but the a cards our cloud very AI of both second very broad center increase continuing industry data adaptable in inference. in in ramp the for of accelerated data portfolio And our earlier including terms late performance the centers, platforms, really in applications ship range that revenue and revenue in powerful QX, month, did of this Alveo, of in announced Alveo standard half in

revenue good will but at to expect in terms, pace, FYXX. expect to grow in FYXX. We modest relatively for We a contribute revenue be absolute Alveo meaningful do

Now, excellent partnerships made we also progress data our and in center ecosystem.

of for next last the side, that in integration per on Inspur, technology cards database which AI Alveo investment at the a images integrating respect and and working to including technology. XX,XXX endpoints. is center DeePhi than can the And an Alveo AI in with XU an and Tech, we to at as highest did milliseconds Alveo well. accelerator a products qualifying performance a inference and factor computing their CPUs leading form server our going with what deploying acquisition use all solutions achieved are generation complete Company And Technology together together is in we in collaborating and So, epic quarter well data at capabilities our offer platforms. acceleration the be AI the Huawei applications with AMD, server strengthens of product an investments we cases to edge and ecosystem for foster quite with we in breadth mobility X are they'll acquisitions, other cards. provider Their applications that cloud cards center in as both cloud significantly throughput global for and with they portfolio announced ecosystems, industry packed second, and server announced latency, multiple applications, X made their and and less record China. we has acceleration, in markets data

on overall XX-nanometer XX quarter Now industrial robustly. Zync our moving applications achieved in advanced new mostly and that represents driver progress growing and very XX% of assist and company, communications, platform Growth product our systems markets. set sales end grow record, Zync a continue the broad ago a automotive, as to sales. a to families year of from XX% was across a

our NC’s and the that a quarter’s beyond was product RFSoC customers capabilities have pipeline see Zync products are milestone product ACAP And this platform the compute the is X-nanometer is finally, the stages Our of engagement prior and platforms had first acceleration revenue ACAP. adaptive revenue well and various digit that FPGAs. announcement we to category well most opportunity we versus in goes growth Versal official double of adaptable, for both by XXX approximately unique as hardware memory our for refresh growing new heterogeneous our family, your and compute Xx recent far at of stands a far scalable programmable. as percentages. are ACAPs software profound over

power full and fly that silicon range silicon. high the effectively infrastructure very connects them and cycles the cloud broad that and applications delivers embedded So a communications from could that Versal multiple them. endpoints the very systems. in AI of And use long end the to edge have across indeed will span applications, of custom applications and inference actual of without running they the to and the optimized AI accelerate Versal accelerate family development including markets and cost be on cases

So Versal quarter we TSMC tape on product to hope track the first next and out silicon we're year. X-nanometer later at this

year. innovation consistent the proud execution. fruits in I'm closing, excellence team’s our our expectations our and for in QX So of excited see and our full extremely the and efforts I'm of to fiscal

strategy continue long to sustained, executing robust be value. shareholder on deeply We our growth and revenue focused term for

So and I’ll turn thank over to it you Lorenzo. now,

Lorenzo Flores

everybody. Great. good afternoon, Victor Thank you, and

outlook several As and elaborate year. again financial and our the guidance very for fortunate with the FYXX. guidance quarter. after are rest records our are this reviewing on of I that we business pleased of Victor quarter performance fiscal increasing we established Xilinx position the said, the our in for will

end at which Revenue last It expected all-time an the declined year-over-year. Zync. X% the In and market of grew from both our end and strength increase year-over-year. center the businesses communications, and sales. QX. than strong. grew decline over consumer. of an products, in last broadcasting was XX% more wired decrease exceeded quarter we grew high than We TME perspective, expected as high of was XX% Victor to offset in primary our our progress a than A&D. from Data Automotive, of and particularly XX% highlights and and the saw strengths mostly four end stronger markets. $XXX advanced more expected grew with guidance quarter platform pointed was on million, From growing XX% company. for automotive Now A&D wireless strength with significantly growth and our three as a year-on-year as slight out contributing a consumer in broadcast Industrial of

remain our expense guidance. expectations million was of below A&D with our our and XXX operating operating inventory. guidance, GAAP revenue income slightly wireless operating we of GAAP million XX%, $XXX mix. XX.X% to lower was the million. Gross at million margin with or million, Finally, and market both was in or end expense XX.X%. and operating strength Note, target was line channel due levels was XX line income below was in non-GAAP $XXX in XXX non-GAAP channel

for the Our quarter. tax XX% was rate

The rates was to items these reform. X%. difference Our of rate related non-GAAP tax discrete primary between consist

operating income a quarter $XXX $XX a like average in and XXX quarter million $XX are Diluted $X.XX net cash price key to X.X was On we $XXX is There reducing of income Non-GAAP an and a equating share in level of in flat part We million, $XXX slightly earnings a quarter-on-quarter shares flow $X.XX down would to the was earnings. points X.X returned in due million I per earnings gross at flow $XX.XX record capital Xilinx. cash, share the net highlight. receivable We of to GAAP billion billion or the million, approximately million sheet ended debt. XX for Our million, to This XXX few repurchase million accounts net of and with of generated with balance allocation, cash for in share. to were shares. share. million at $XXX days. shareholders on dividends

the as updated allocation QX to On discussed, discussed buyback, of our Victor at our capital in our application guidance. reflects and quarter. the completed dividend the we As acquisition accelerate to This Day. strategy strategy, Analyst the acquisition, intended DeePhi and our of our FYXX

million. to grow million to QX expect We continue $XXX revenue between with $XXX and

is TME and and $XX GAAP defense. and industrial approximately in gross flat. center approximately defense, data expected the communications, our between in $XXX million. aerospace looks consumer revenue in XX% $XX in expense growth QX, and and expected and million In to be and forecasting is expected Channel million. of and and margin are TME. We range wireless to Particular strength be aerospace broadcast Automotive to come is operating

non-GAAP in approximately to increases will expected quarter-to-quarter expect $X XX%. including DeePhi We tax be and to operating $XXX and and be expense sharing is The in rate approximately increase XX% income be our million. the related Other full incentive integration profit to employee and operating of the between compensation, sales million expense acquisition. is

$X and be be expense to FYXX expected would is XX% approximately million XX%. non-GAAP Gross XX% revenue of non-GAAP to year and the midpoint, other operating the expected full other expected forecast, between growth. million. expecting the revenue income. to margin expense $X.XXX for are operating approximately $X.XXX for At and will $X.XXX $XX GAAP this billion is of GAAP be is be year be income For to now our year year-over-year between for billion. we be income will income million billion be year the approximately and $X approximately the

be flat between In the to up between Share show Our non-GAAP count year. and GAAP expected and the be is summary, expected year to and the to we rate of very year X% XX% slightly the XX% revenue in for the growth profits. rest exceptional to for is rate expect and tax XX%.

realizing our ahead opportunities of our stages initial execution and the of our we at are are excited see of strategy and benefits expectations. developing to the We

now turn call Q&A. for operator back the me to Let the

Operator

first Your [indiscernible] Bank from comes Instructions] of America. [Operator question from

Unidentified Analyst

commerce your This is My question. taking business. to Thanks for [indiscernible]. relates my question

for this Just geographic new trends the market more communications you to to can can quantify concentration expect exposure Thanks. your any are the baseline be excluding China into and XXXX? you specifically, sustainable you talk you and about the about we these the there, move business, talk growth, China as should have how

Victor Peng

growth market, that but all an we is said customers comments the segment in in my with China saw top worldwide. as I that important Well, actually

areas, say seeing would is that a growth in I we're although So number China important. of

on have happening one I in in think an maybe any there's event, of the mentioned we forums in where acceleration – of XG actually. areas Korea that deployments the

China in again we're So while seeing important, actually is multiple geographies. growth

said it's happen appear it’s It in will it happening large of carry XXXX, XXXX. that that starting past indeed and We We that we bit a earlier. course appear the ramp past, believe earlier. the really that to have over bit -- consistently, build does it does it's a still continue to happening expected but

that's new from that I perspective, think a recent trend So suppose. I

Operator

Morgan Stanley. with Your question next Moore from comes Joe

Joe Moore

there. you Are might not sockets you very integration what's ramp Zync. you've not this the growth have had your Zync seen had growth TAM How had, You visibility expanding you talked you That or the do in impressive these was it? strong pretty continuing Zync? see on that about and in that

Victor Peng

perhaps, Yeah. that we would in pioneered think exciting so and but broad other software seeing that just bit very what's about is from on -- and the thing it, from controllers ADCs that that that we're the was ASSPs, some that, before integrated it it’s with time I and gain on was strength Other and I it which some that seeing while, are based performance that certainly and RFSoC -- the other very board took broad work really think we now took taking what a the types Joe, early you based, things that little As to a of quite everywhere we solutions, DACs. we’re and more mean, now away and that we days, the capturing we're second is but see more there right. MPS FPGA we generation longer it an know, ago do of is something certainly is Zync added is high will right? were and just embedded say I

expanding the made still as of revenue fact front XX-nanometers. uptake tremendous So, seeing we on of as in footprint the I the would us. we but a most of that Zync revenue in XX-nanometer is well in that is terms the Indeed, design-ins say back for We're the are the most investment still Zync. XX-nanometer, of

Joe Moore

And to Xilinx a do it think of How applications. tie a How but more revenue, like from investment of forum with you heard your lot. fairly I we’d guess direct be use then more you that do It obviously IP balance? your standpoint? if I’m the and able heard of had of libraries, specifically that about, about several the and some out about of at customers developers there I is and an developing takes we to think we seems comment Zync the sort kind more Xilinx use generated

R&D we at So that maybe as you balance look in Should those environment? move continue how to you opportunities? up, expect to growth this do

Victor Peng

good we're really of continuing point balance very keep to this can growth, invest. very work to a but also to strong and We It's return trying again the investors. on that

putting and hear also hopefully I will me And that's much ecosystem. we're headcount so above you the we're software if took away in from trying basis, percentage a said you some driving our developer’s IP more. on in you and growth that, think really silicon that you focus, forum level see we're and a and Having highlights big our why things the will increasing

but partners AND, Xilinx like and Samsung ecosystem the it’s So as just budget others. budget, as collective it's the like well of the R&D not

and try in things. returns the as we're balance it’s higher those can deliver of that all an on So so our going and model. of it do to all those more leverage part things, as and But, to get invest, continue is we we leverage well how

Operator

comes with question next Your Evercore. C.J. from Muse

C.J. Muse

importantly, first is or and learned now you've deployment, into a early translates what I speak and today question, basis growth and and guess, XG sustained into guess just this wireless content can how relates that to, you it XXXX prototyping to other then on I whether as beyond?

Victor Peng

Yes.

we're that part been think what of proof quarters for it, of seeing it's, is the concepts on So I we've saying early I not mean, we're now the and prototyping. first some prototyping. inversely

you're So and radio now, of the what say and going I heard me comment you baseband. make and sort of that is then seeing into of some production would

have still more in absolutely is power efficient and RFSoC. we and terms most really than is see there effective, form product production. size had like have based another one actually of element out is do traditionally. So, factor and that cost the has that we what No and RFSoC emerging solution there. content weight It we’ll is

strong. pretty it's yeah, So,

Sorry, second the part question of regarding.

C.J. Muse

revenue looking we from today early like, to the as What as you’re as contributions deployments the what go look into deployment? can

Victor Peng

we mean, XG be that we the to overall, I times for [indiscernible] although industry still And I very will continue see strong. the will has deployment think seen. largest ending at up year things expect the wireless Yeah. be or

extremely so, I position. I particularly Yeah. the And RFSoC, well extremely we we're think have think for with again, positioned that. strong I on radio, an mean,

I as be still through. no some doubt right, this but do there'll we build, that lumpiness, So will again go think

C.J. Muse

your Great. Developer’s I Forum, follow-up guess as a launched and Versal. at here, you

Joe's key developer’s should think curious to milestones so I software follow we about what instances, the in be there focused training question, how terms of should was of on? up one be key on thinking questions we

Victor Peng

that. just accelerate the about in in focus Indeed, right. a to mean, SSD of product, of storage. bit those you of not compute, center It’s little us but Samsung mean, we said, also be but I data expansion of elements, to there each Yeah. FAS, share as all We're just trying certainly I non-FAS. tends

in also converse We have mix mix. positions smart and

of board I I way and that. right, and we Analyst Day to our there is little our of networking which business. think back the strong execute very a business, bit the in would think a trend ecosystem the side foreshadowing, then we the all the There's gave

to to we're things. be shareholders up On I and can meaningfully return watch level, think of great this board that to business next going many So fiscal another will reinvest to – are if we're offering how that growth, and board in people firewall going board some that contributes as more this keep sign those spinning. to see and we year, developing to investment revenue keep

Operator

comes question Pitzer next from Your Suisse. from John Credit

John Pitzer

wondering that kind you what Victor, more, I for a bit answer on question, markets? for the worried influence picking December we’re kind backdrop strong in industrial for despite macro I up most if that quarter. you're square And about, you’re and could the Curious was that A&D. of look talk you of probably your comments, you it’s could said have if macro you your in elaborate if little maybe businesses prepared might you, those eye the that a gains at yet and and as macro are share all pretty be guiding you the end growth circle me about that

Victor Peng

forward, strengthen actually actually again. the current in already to well. very was up and quarter going going that’s we that a but was Yeah believe off strong down that A&D quarter,

of where So that. basket. you we sub-segment see a we I'll as any area for A&D in our overall actually one don't give sensitive the signs do to

Within emulation know, you are prototyping. right, and there semiconductor within as tests so expect you seeing measure that. that, weakening are are pretty might and our As test and we baskets big,

great emulation we're other and the hand, seeing On strength. prototyping,

for on those TME of puts takes, is we’re seeing excellent So still and given all an year. track

XG there's there also strength as for So, we’re like equipment seeing test, a and special, just test and within very good reasons. obvious also including

not the and -- have than out just options think this of to for strength right. are it’s we that is perhaps, that to of have or products switch are just core in – innovation that in system, or part the other that high value and also So, there the more not we people and sensitive I this value is diversity less we're as the available to high

environment, FYXX, one aspect good backlog. that's it. the of about give we’ve mean, again, then Analyst very Day And between at walked good of that looked we're we signals this will we a and seeing but lot into we our just think in we're it strong and I and with of then, very again, course now for keenly certainly So certainly, we and business. feel I the earn aware quarter guidance the

John Pitzer

helpful. That's

The other follow-up, just relative to. Go ahead, Lorenzo.

Lorenzo Flores

No.

were -- expecting you the industrial an whether John growth I just think referring I and sure overall wasn't A&D. quarter-on-quarter we're that to or if you’re

about wireless. XG. out in didn't the continuing XG, is with growth LTE in the think of talk we communications, We fill the in strength continued One that pieces and aligns particularly both

So I'm overall then, that's the story. last piece go growth of the And sorry, ahead.

John Pitzer

a I as follow-up, intrigued Victor, about guess, comments datacenter I then in FYXX. growth was by And in your

to Your know, to like a probably this a opportunity help confidence customers, got seems pretty high. just good line on elaborate is that this there talk can confidence, and I is give about, you gives new Maybe I if of that Seems of but board. kind the parse you us level that you’ve out. to sight. comment can't you wanted is silicon you lot what

Victor Peng

don't UXXX. and Yeah. And, way, at the for through it's have they Alveo next small some board, we the Well, end course by But from the get QX of very said actually, of actually are but and I a going launch good more boards, grow We the actually I well boards quarters. as very that of the rate, to we revenue UXXX boards a blend, said. two number. have one at number it's starting a did we short only

FYXX not it's So but meaningful. be meaningful, will

a all, board’s stream have if right. we So I revenue step back, mean, you didn't at

is certainly contributing to that. that So

memory is SSD, very to major you able speak we who. can -- a mentioned a but get DIM tell smart I cannot that say memory smart supplier, that win to am I but I now, of so I I The did with design a thing say, lot do games really a can't right Samsung’s there's have launched other they to I that.

a I feel close but we of chest, know, and then, you meaningful seeing year, it’s as So, fiscal the the customers, much for competitive revenue. we’re relatively more next start really think and particularly in to that lot a reasons, will we saying We've a coming that segment, next of together. in datacenter back smaller that the percentage seeing been we it's see going as half, year, to growth do number but good fiscal start

Operator

next Your comes from BMO. question with Ambrish Srivastava

Ambrish Srivastava

to wanted XG to as Lorenzo, the I for? just is I kick sure in and it the confidence well Victor, is make other full guiding it I'm and year. the for about beginning understood XG, the talking dependent on you're segments, as what comps, quarter so LVO that beyond

Victor Peng

from into this and give we is to this me appropriate reasons we Let as and the mean, very I and briefing situation, carrying colors dialed saw feel Lorenzo we quarter to while over I in because also the macro can watching fourth. think, of we're in let the the I’ll breath mentioned well. also one still I a which guide see that QX, of of strength that is for the what the add

initial came other pointed those in beyond seeing boards, but we're there data markets, generalizing yes, it your though the that, clearly the that year, say, you stronger so just it's than first and as our So, I so the breadth, statement, for the in of out would within means half expectations all some communication center are and weaknesses. even strength then because markets, goes

market weaknesses for we end bucket, TME, really that larger report I that overall within are As but the the segments in good of there out year. some the said, looks

Lorenzo Flores

-- I large dollar in the of a don't end talked we more I to just the relative the dynamic that in mean portfolio much continues it’s the have we communications, broad obvious, support. about, kind end that size much but contributor, markets is with given of add. is markets growth of that it that the and than

Ambrish Srivastava

well within level then but to has it if remember the ago. we if number peak us I correctly, XX% was -- the could be we it give said go years saw back, a sense a you year-over-year, for you communications, below And few up

so far have now, should how we that Thank from the in into from rollout, So XG as last and number quarters are or that six we level what content, expect you you build? now below broader get we than should did you. the higher be eight more

Lorenzo Flores

wireless second Give is sure below me three But I it, other both end end one the about in of growth it's It communications, seen, markets thing the our smaller to for of highs just ago. the five years overall also, make past, meaningfully still wired of from we've still, and and not business. the in think think it given things. a other I'm our both the percentage to misaligning is markets,

the Our to as overall headroom, past levels to exposure we’ve at but wireless have point historic that both the expect and that we is get do we in smaller, some discussed wired in future.

Operator

Your next question Goldman comes from with Sachs. Toshiya Hari

Toshiya Hari

test, an where them. idea, of markets, give these concerns? markets sort like end bit addressed Can of half as industrials, us you we of have some embedded sort a in quite what’s end semi of concern automotive, for back guide is there obviously, around Victor, do your you

Victor Peng

areas, some bit are Well, in then the some areas I think I there but Yes, TME, some right. up. are about weakness talked a

So quite think up nicely but business. that X% of automotive of the our sort to sort see, about – automotive, from TME I and still we continue, we is overall we in to the semiconductor for we we're about how in that put just around what again, can will seeing it – of test. is growth talked the first be and certainly including year, strong, expect think context, semi half, right, in On everything do

the like, affected are in dynamics the since but some it just not in context, it, strength in put they watch right, to we back broad decided have So, operators be yes, we so to won't such fluctuation know off. very on even just are that of since not feel we there's say but I some to want that because be to these I will repetitive, such that some again, mean, they segments that, they pull going if areas carefully would XG, in

right, the to would then later ramp, said has modulate, have three the is been we continues. and a We some because planning accelerated which that just upside, but like more had liked the were really that. this ramp extent, may before, still just they that have of in product right since we've this Now, the RFSoC, timeframe always last never more we quarter, that wars fact

the so, will radio to more have and And in we going be value that’s there is more side deployed. radio

have, we're because affected, don't think some are are very there yes, the going watch as strength that to of to again be and of some So, course but broad areas going the I that this but we product of carefully. weaker, we’re leadership

Lorenzo Flores

good a into our where value we've to with in platforms be products position the even that areas in auto, high in phase. We're in products, like ramp our the designed are obviously tending wireless Yeah. and been

some gaining but So end markets, in multiple while puts impact may it, position. good macro in they're in it us a factors versus still pretty ways share alternatives

Toshiya Hari

quick Alveo of sure with as been been customers, road I'm a so you've specifically, up, then a Great. conversation and hosting had And follow a bit far. what's you've but a feedback lot quite Victor, for obviously, on sessions the the

into magnitude so ramp for about ’XX, again into the and how think about calendar we specifically? the more of talked should You Alveo ramp that December

Victor Peng

Yes.

very For zero, starting at last quarter. from effectively the FYXX, right, just again, it’s of end

will basis, to comments, be my So, course FYXX, percentage I meaningful of it very as but that be said through the saying not material. will it revenue. But grow a in on we're

Forum I certainly early is being high. much upside do think think it some also getting fact little how you education around we we strong and things versus a right. that questions of the the interest and bit more there, in that's a moderate, hopefully and I some Developer’s the the momentum application did saw so is that maybe that in forth of why development, just there degree around are of the interest

So being but there's we timeframe, not it's FYX. interest early feel of lot like and are, a days, meaningful the FYXX do in signals revenue

Operator

Baird. from Your comes next from question Gerra Tristan Robert

Tristan Gerra

part can RF you talk addition that that has to universal semiconductor as starting could You’re are the the What FPGA play been adjacency content and go integration adjacent in any, seeing discrete other now after to and DACs as be about going if such FPGA that opportunities to candidate, forward. you ADCs of chips, series. are the traditionally content

Lorenzo Flores

Yeah.

some of is, because a got and sub got that. it's a not before series an and we reason AI AI new, hardware, to trying degree, that all SOCs, like programmable is people It's the types call and different core got network chip, of series -- the them, families into it, the fabric richness make of on this compute built the generation the distributed engine. for of Versal, instance it's that’s to you architecture, one of the if got the adaptive have FPGA it's appreciate we've the infrastructure So look multiple keep some exactly this in multi-core the next at it's why products, engines the a memory new will sure

to series, you integrated And so of part if silicon of and a interposer. all high powerful and still multi-MACs, HVM platform. complete to some really, talk look that is course just will level It's at speeds really a the on going have integration the

And and in whole to delivering around so been then an because other that, direction we're in So area so more is increasing FPGAs. focused and on and of so exactly driving competition expand just indeed It’s SAM expand a will can isn't we're software lot we're good a that's there's get we and we stack why the that and around and this that. beyond well that leverage of then our ecosystem the more questions that. the going that

So integrating Versal products. of into yes, our capability amount we’re a tremendous

Tristan Gerra

making very of see market any market of revenue conservative back probably that assumptions, half for rate adoption the could share share give targeted, reconcile or to this to any the to incremental rate coming with or adoption revenue center the And you that type suggest from assume trying less you’ve data that ASPs then just even while that of are assumption that price if in we guidance. terms get your your the, stream new you opportunity, on you’re us mentioned, going color

Victor Peng

being said, early interest. Well, days. to measured, certainly that it us. strong what as But we're is new very say for It’s say conservative, that, but we just trying I seeing I I are we would we're pretty wouldn’t be is -- because

go have to whole out, -- build actively building to market also we the think out I are. which we channels. we We're

applications, competitively, to deliver we the but to feel we a that being the product be -- share. of a that we to going priced going right, start do that's mean, is chip, to would we see this of is lot new again that area. to All why and I then produced, both market and don't we pricing so because we’re a as relatively emerging is we say people awful value, so but with with way are value whole we're segment like an I acceleration will people an whole right, value new but accelerate stream again, think capture as have getting it’s revenue well

Operator

Your question KeyBanc from [indiscernible] comes from next Capital.

Unidentified Analyst

very a customers that points expectations on growth with internal of to potentially It forward seems I to forward can seems think similar potentially that will of asked kind happening you question in center we've one one like of Huawei, just you've we potential Catapult. customers can your center? move it that's year, good for of data adapting is was or with at like an more WS, but customers case meaningful wanted FAS, with there's now your move like into if more follow-up convince to much something We data proof think right acceleration your customers to earlier. got the use meaningful seen baked take that for Baba and that about opportunity, several architecture, what it your and next

Victor Peng

heard, just we're it's did group, I video, many point, and acceleration the fast working back mean The agree that right. said, sure on they memory like it’s unlike storage, agree just just I is that. suppliers, in center world us, about right, not earlier, compute, other and like I I to even not data that Well, for look, indeed, and mix. opening and comments your we're heard you I'm my in right, now Twitch on But and in smart to conversion

show So involve machine yes, not. working things Again, some we but always we just that of for again, be engagements many bit just and a with learning, do have we when in to which some and shared, others. can acceleration, goes which challenging terms are do do internal it's

again Alveo to it lowers going develop the on-prem. also I is think for bring also that, barrier applications significantly that people to to and because help

So, it’s not right. everything that’s around cloud, in public

that So hope share I agree going forward. I and that of with I you can more

Unidentified Analyst

approaching FPGAs, the RFSoC And Do some and in with then you talk expectations of performance to does customers MPSoC XG combination just your kind is a your of savings, as are an opportunity? It customers ASIC more customers seems your give XG. the my the other expect XG. your like RFSoC about BOM and can using and to integration in move you follow-up on XG you for power late cost consider the because of reversion as staying of and cycle that majority

Victor Peng

Absolutely.

are not kinds it massive based I like that just couldn’t it's we MIMO other by same statement RFSoC like better We radar articulate. the look, applications. mean, than or architecture, has their I radio I any it is hype. see the think And of the XG, right. this. not have that kind and you cable, on there's mean, I architecture, people mean, see I in way, just application. like, changing nobody it's of made product the antennary in really a it’s

being sticky. And started, what particular right. getting see and it's that really in deploying. people instance, to so, recently that production in sense, just able people are and went disrupt We into that it’s pretty just I don't certainly

will RFSoC very, not be RFSoC. think but I strong. you're was very And, just So right, certainly it

as seeing node. our FPGAs, XX-nanometer at We’re other as well usage of MPSoCs just the

are will to a think moving now, in that -- have as I actually so suggesting I'm – in right. will and happen That happening position baseband so a isn't quickly. of dynamic the probably happening and instance, bit I XG longer, is and things I so right. that that's think, are our is time course over not many to things necessarily there's right Some for already so durable roadmap, radio radio, of position we our that mean, for be but going that could as ambitious but go that, and things

the RFSoC. generation first as the next just not in We X-nanometer. already product, have as it's generation So the well

Operator

question Seymore Bank. comes from Deutsche next Ross Your with

Unidentified Analyst

Hi. Thanks Jay me is question. ask a letting This Ross for for Seymore.

You perspective. XG benefit touched transition, to do this view the from but transition as and previously, compared perhaps from XG on duration magnitude you Xilinx’s the how a

Victor Peng

the being really much past standard, as going a isn’t communication XG broader term bigger opportunity it's Yeah. a to expand us, a from There so it perspective more disruptive. necessarily was really for a it, it's including for because XG technology and is basket XG also what industry It's I it's and as just MIMO, a being well and technology, think XG. but is much significantly on which is I mean the inherently things like used automotive. overtime of of IoT massive is associated, not as both to clearly that's

innovative, it's then the like for more also And we it's bigger, broad, is ambitious. not value again, like So, because just we're RFSoC very in we're it's very of added adding segment value instance. that

back DACs high we and have in RFSoCs integrated. the performance matter, integrated didn't we that monolithically XG, but didn't MPSoC, have and really For multi-core ADCs

our general significantly time broader over be think So and will be and opportunity yes, bigger larger. I the think, I market will

Unidentified Analyst

on the you need on follow far are slow structural do the As along engagement persist investments investments OpEx do to side, center a data they those in of or efforts, customer software up expect customer or by how a Xilinx’s basis? support to

Victor Peng

to could values to I still what’s affordable, think, Well, certainly need strokes, within and going reasonable I to, that we broad so mean in return and it's slow. we invest. continue shareholders fact, in to not

headcount software doing ecosystem partnerships. also investing probably we’ll we invest the would perspective level. than said, the a said we in fortunately silicon and and from in I Having are things silicon about more As that, at

So we're footprint. expand really trying to the

us. just So it's not

part that top is closely make right, to other There's investing we a big that customers. customers. are customization. work really, of their also as There's to well some you select the that really very the with needs true, alluded Now, things the lot and to obviously sure we deliver for we that and of doing

IT some broad major the just related and and those reasons, are as we of be So well investing on investment software customers, both will more horizontal for yeah we things. key and as

Operator

Blayne And your with from Curtis question comes Barclays. next

Blayne Curtis

that and versus curious, into were guided? talked then XG. just planning longer was back, was quarter, ZTE what you maybe term, curious curious just much how you Just you the mentioned earlier September about you just when And

of of few XG you like sounds just the If of even quarters may as the then be and quarters it you two curious, versus years, ’XX lived, over fell. a XG. XG of relate little just It or longer XG. trajectory in out kind ramp beginning can of next sharp to kind the That’s all the look

Victor Peng

Okay.

and is from ZTE early everybody, be the say ZTE, is certainly ’XX, to ZTE deployments our because, very so say that de not as so we wasn't seeing the would XX% just the customers client original our a our wireless. to we of happened want one start order mean I they at would start we remind that, but part and when as we first want said don't Having original was knew of honest. ZTE. the an like appropriately. above strength to fiscal component adjusted anyone to XX% we plan. again, of plan. being near have back see once to though we occurred I said major we even it's customer I first and that just are it but had I novo take it any at customers So that over was fiscal last that obviously, not -- quarter to have them out it's emphasize or growth, year, the ship important but in, then There in, did wasn't But just about that other we’re that’s

Okay.

think ramp, will So of definitely, of I larger. XG terms it kind before, I be then as said in

the so model I we it’s calling level weren't we innovation that I see much the heck, to the going were ambitious because with to think and at what's mean, so of – is -- business last you But there even last mean, exactly quarter, so I happen many longer, XG. so know, it going many saying shape, it. will there’s

lo mainly, XXXX but we're Now, next we're maintaining wanting now, people do year. that are to that and that saying behold, -- deployment start appears it

out. bandwidth. telling that, totally that think how be and I I’m why to but that's it's nothing feel you us don't exactly be for because it opportunity is latency it and high So on people to a time, and over a bandwidth will I want I be big will opportunity rolls going still crazy somewhat people data there, do caution and long comfortable. integrate low want

by is So get only go the and entire the be has upgraded. out very mean, going wires to way, to substantial. build that Not that's too, I network wire

Operator

comes from question Chris from last Your Danely Citigroup.

Chris Danely

way. of been plan Thanks XG How XG, long. doing guys. one, I would in but another is you know for too right three guess not ask I'll and of how think at going go know that thought I back do then that you this the question longer I’ve talk quarters was standards, or XG a curve, could interface excuse and you original the in like air way try we revenue far not look peak it you're at the you and ramp from this about now, you but sort of one, look ahead and give to you’re ahead the where your us the peak? have if the be revenue, previous going me, that are I initial then long if upgrades be the ramp to the until from initial until two,

Victor Peng

Okay.

say. of ahead you two, more what So, probably I you’re far three said in than probably is kind ish, would order three. of and question right, how magnitude, two, the of part one, your I say, or I first guess people. right vision not to that of, tougher. terms a claim quite And then again, really would going technologist do that’s customers the lot to But candid. I look, in I'm I of and talk be and

everybody macro artificial to going would having another is another way broader. level what It whole is very the this, and I add things. at that, machine of network. Right. ambitious to in by looking a the So big bring that, very, learning intelligence, into definitely to is this said and say trend be is That's going

ambitious how is will smart the I hard to when given do how it, closer this are be going think traditional just future. don't lot what, markets. would enough get broader. delta to especially just and the I’m future qualitative. So be, is That I predictions to But, certainly to not hard, the the The know it the predict. my be think just peak. you whole to a call we about changing

Operator

this at no questions are further And time. there

Matt Poirier

PM call, playback joining Great. everyone Well, X thanks PM X Pacific, at this a today, of and today. we’ll for Eastern us have beginning

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

fiscal closed. will Wednesday earnings the third be next year market for after on date release XXXX of January Our quarter XX the

our attending call As far we you conference be and will Credit Suisse this your the November for participation. thank on very Conference participation as XX. much quarter, This completes Technology

Operator

you. This does call. today's conclude Thank conference

You may now disconnect.

Xilinx (XLNX) 24 Oct 182019 Q2 Earnings call transcript