XLNX - Earnings call transcript Q4 2019

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Operator

Good afternoon. My name is Ian, and I will be your conference operator. I would like to welcome everyone to the Xilinx Fourth 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 conference. Poirier, your

Matt Poirier

Thank you, and Peng, good afternoon, everyone. With Lorenzo CFO. CEO; me Flores, and are Victor

Day March and We we a provide see we for XXXX guidance. will the where the year overall business also quarter for as in ahead outlook our Analyst quarter. review as will fiscal detailed well fiscal financial and provide of how of full June provide business share XXXX year color Investor the will our Lorenzo some year

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

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

Let me now Victor. to call the turn over

Victor Peng

afternoon, made progress to growth very Thanks, on first fiscal excited of our in everyone. exceptional original by $X fiscal I'm our far XXXX. was surpassed that revenue XX% we delivering the good billion strategy report This history. XXXX. and for Matt, revenue goal time in over our over We

with primary markets Our all growth was our end broad-based by double-digits. up

both XX% on as of details to $X.XX and million, to and fiscal was March see levels $X.XX also year-over-year XX% year-on-year The quarter per XX% financial up will per EPS non-GAAP March increased provide revenue EPS record We XXXX. strength more reached $XXX share. non-GAAP Lorenzo to quarter to profitability as increased share. year-on-year continued the

focus year. platform progress made now on key comments our a excellent So my We to on accomplishments company. during transformation the

on ACAP many deliver XX% power end our Versal, automotive, First generation, which performance markets. across many taped increased and first. and industrial revenue communications, and applications an efficiency XXx and end Zynq all for Versal in deliver applications is and industry We our schedule, out approximately with particularly of compute XXx will markets. second strength bandwidth product ADAS X-nanometer

deployment. applications drive of conferences increase attendance hosted three developers successful our We and performance of PCIe also family broad on-premise increase launched a Alveo, cloud powerful, our part that had And the for adaptable both development as also and to expand that we application cards of a ecosystem. a accelerator of globally range record very

communications, well-positioned and the XG drivers: expectations earlier growth FY exceptionally believe shipping we start early We see automotive. with share which volume geographies. cycle, our me started We're XG larger historic around gearing multiple in let now communications, in at deployments and XXXX. multiple Starting will of stage we in than some XG. a were times in applications. highlights South center up be Now, began what's Deployment key radio Korea deployments than three data at our of baseband and this

complexity rate XG in is opportunity XG. particularly radios strong more for the Our because need drives new that the of the in significantly standard

We expect for more higher products the radios to like RFSoC. content value with get given we add our

addition, our with the product our In sub gigahertz covering expansion XG roadmap we portfolio complete RFSoC of have spectrum. recently announced X a full

our than XG this in more early see revenues me baseband very deployment. phase of typical of Let share

time. what replaced some to including be this current seen retain expect and with ASICs XG is the while over And consistent will deployments, X.XG. in some by we've We of the sockets, XG baseband past

beyond our later when expand X-nanometer have an to of in revenue baseband our opportunity we levels Versal Now ramps deployments XG. historical production, the

Now applications. moving in on develop center, data expand continue variety platforms high ecosystem volume we to adaptable of the our and a and

provider multiple technology our for solutions our converged We platform. Solarflare's low strengthening acquire financial. powerful soon of application Onload are with a with announcement networking and data of strategy applications, MPSoC to software SmartNIC latency center Solarflare, today's a our NIC industry-leading high-speed create Combining FPGAs, acceleration high-performance, intention solutions and first ACAP including will

networking software silicon, tools leadership. is to excellent and and Solarflare's expertise our an IP complement development

the such partners than doubled the also analytics, vendors to We Versal our initiatives. independent platform we to corporate XXX trained of through multiple We nearly more applications financial in and Development video over fortify our covering ecosystem to Alveo businesses over Environment ecosystem. streaming continue number cumulative Xilinx SDAccel increased our and on We numbers year-over-year companies as XX software portfolio added X,XXX, and developers data ventures computing of acceleration.

Moving onto automotive.

second-generation fiscal generation next expansion ADAS of grew an MPSoC generation we saw and Zynq design systems. wins in sales of XX% the in XXXX, First Zynq

autonomous decade. growth increase well to an this We all also put revenue expect together we in the design wins. saw driving see next into steady And momentum,

multiple an networks. Daimler So Sport for solution AI neural accelerating at GLE powered Vehicle showcased new MPSoC last in the that's example, Mercedes its the CES Utility by

highly control unit Xilinx automotive In technology power a to addition, ZF collaboration their driving. automated AI-based enable strategic with announced will advanced for all

Another camera our front ADAS production recent announcement to the the SoCs. using will in milestone be start China of first technology that its BYD was OEM mass Zynq

to in great made strong we as us growth in progress in momentum enter exceptional in XXXX. growing Having XXXX and with So, achieved The great FY markets. establishing a growth we now have provides large we FY positions believe multiple us we strong markets. to established we that summary, high is time two better our focus increase strategic To to for business structure growth our trajectory, the match long-term and end, organizational agility objectives. our in created units optimize

or will core positions be held to Center and but and with solid which profitability. vertical Madden, decade. led we at our over functional DCG the have for Salil structure Data or Wireless Salil respectively, the markets, Raje And the a Liam by we senior the leadership formed Specifically, other Group Group to will Liam both sustained have me. horizontally Wired reporting and WWG, leverage retain Xilinx model growth for for and

In addition and to organic portfolio, roadmap, XXXX we our X-nanometer and execute organizing ecosystem. increase software our in extend we for growth, silicon stack will vesting as our our sustained FY key IP

And XXXX. build to in strategy New over York plans our strongly that acquisition make strategy of I'll in We'll details our We you. overall XXXX turn FY now City. aligned Lorenzo. Analyst share will and Thank FY and investments our inorganic our it shareholder like more about lasting next our with month at are value will DeePhi also Day

Lorenzo Flores

Thank you, afternoon Victor, to good and you all.

growth thrilled a all first growth the in driver billion Xilinx XXXX. technologies revenue, areas EPS key execution many sales. of FY $X.XX Advanced have end our in this products now and are our with XX% past Company achieved financial highlighted XX% are financial the grew growth of of from They XXXX. the the We we durable demonstrating the by up of more FY of which GAAP results over EPS $X.XX, on records we are all was of reported operating across the leadership and over delivered With year Gross of double-digit are total impact position operating growth GAAP business. across Along strong markets, reform XX% up profitability. revenue grew the FY year our This growth tax exceeded would income XX% record XXXX. be XX%. our EPS earnings. in $X.XX margin with of industry. basis indicative XX%. growth, dollar FY XXXX a XX% to performance. Due for financial results, GAAP performance was our and non-GAAP was the On operating non-GAAP excellent margin resulted maintain XX%,

Gross an broadcast. the profitability the our stronger to higher expenses XX.X% Automotive, market also came down, proportion revenue and but million, TME broadcast was offset quarter-over-quarter consumer the will We center Industrial rebound as maintain Data and flat, auto guidance our than as end in sequentially below in expect and it market margin was GAAP respectively. quarter. we and grew. expected increased wireless, operating X% mix. and by well. at decline each in QX. due Moving cycle communications on almost GAAP million, and year-over-year. to below and margin strong was non-GAAP and March particularly in at was operating growth that in by industry driven XX.X%. of margin $XXX Quarterly were were non-GAAP XX% Growth growing revenues $XXX as operating our was data wireless grew declined. $XXX A&D year-over-year. million XX% XX% guidance XX.X% end quarter was primarily quarter-over-quarter and TME center

$XXX on March cash on ended growth a non-GAAP For after basis GAAP billion a a year the retiring cash EPS the and billion on share, non-GAAP the quarter, and with quarter. XX% and million in GAAP highlights EPS over a flows. $X.X sheet few balance prior $X.XX was debt basis. our of in $X.X our gross was We and $X.XX EPS A debt QX was XX% share. in

to address shareholders we increased ended a FY to $XXX returned we support as at increasing demand. In our through accounts and $XX $XXX million year our million XX to and of We our before days. continue to the to of move million shares Inventory XXXX, inventory million receivable million combination last on build price at paid shares achievement dividends. million buyback X.X dividend. average an $XX.XX, to worth total or in One repurchased $XXX of highlight of guidance. I $XXX a and We

a we in capital XXXX, this XX% our flow, rigorous management of FY growth, XXXX. profitability $X.X and disciplined of of contributed outstanding to cash Revenue working generated FY all operating focus billion result. an increase from During record on

vertical been now A&D, called markets, automotive, often be that call have called and new which split. AIT, will structure. organization has or Before I revenue very of Wired historically The we Data Group move our will of on to be include want will I TME and performance we and reported core and called broadcast new about separately Industrial modest. bit high now grouping WWG. element will will reporting consumer TME be and and talked our elaborate called a ABC. computing, Center Wireless What what guidance, Center Data and Communications little will Victor market a remaining Group although end grouping the into

million expected percent the growth. Revenue Now wired QX expected growth $XXX The with double-digit of continues to onto driver center growth revenue the and both growth will key Data million. resume be $XXX WWG guidance. in wireless. in is and with between

be and operating between mix is expected guidance, growth in than approximately to We rate income expect to be leads QX million. declines expected is $XX us up AIT expense gross QX, and expected and expected ABC QX million will to non-GAAP and be All This markets to expense million are our is down with to TME, industrial. expected at Wrapping more In in is GAAP be our forecast be X%. market operating A&D to approximately offsetting XX%. $XXX grow. end other margin meaningfully and tax X% in GAAP $XXX end

modest operating more end steady. Analyst auto, In the on second QX for our now in rebalancing and margin gross to modestly and more to to we half, similar our growth is levels. While we Investor with other typical XXXX. or the and provide return data defense, you first a remainder and improve mix XXXX market our we in to of In with to we details a expect QX expect provide the be The TME margin framework center, remain can of aerospace strength Day, half, gross FY expected revenue FY while expense. and grow businesses increase

realize into tape-out After performance we across Our with a expense our as deal annual headed compensation FY increased employee impact increases momentum. will in half and in of XXXX, XXXX operating also grow exceptional second we are of expenses. great FY the our base the

deliver one than and We far have growth more revenue done with great year profitability.

in been our our driving center strategy, expanding establishing our across and We have XG, strength leadership and market automotive. successful and reach data our

Solarflare, acquire of our acquisition announcement Victor the include technologies and to As our the with recent bringing talented also aligned both noted, and DeePhi accomplishments strategy. teams

to looking we solid double-digit at start successes, to and off With the are me rates. call the With let a Company turn forward that, growing over questions. is these FY to XXXX

Operator

from question from first Our of the line Instructions] is Credit [Operator John Suisse. Pitzer

John Pitzer

Thanks, you lot of question. the your or some expect in a when guys. and the Yes, you that build-out a continues. content magnitude can FPGAs the might there's me the prepared talked displacement ask beginning, kind the as business stat? you I'm get of curious some to normal then ASIC comp about Victor, moving let timing today of baseband winning comments cycle, you're quantify at help of

Victor Peng

Yes, thanks.

to stronger there we’re more First you because is of baseband glad as to radio we're there. I'm more going going content ever. radio be going modify be all, with said, I that capture than And and

we factors some at even historically the very And we early of continued which I'd year, half than really obviously depends transition, from second the always side, streams typical complete coming baseband. have this because still revenues. part So external don't into and on we the of that have say displacement, see within higher again, exact revenue of ASIC baseband last visibility. year start retain beginning call after to of it's the of sort the difficult kind

But think more not I is do Analyst however, unsubstantial that have we solid where off, built is And again, to it's build how into about we the into so kind it Day. at see fact just again, Investor that we and of that takeaway hear that don't expect persistence that and build think details of we into think XXXX it about some roll we that FY our we about things. plans. you'll the

like Okay, so than prudent. we expect persistence to where be have what not it's longer would

Operator

next from BMO. Ambrish line Srivastava question And is of from our

Ambrish Srivastava

was the much. peak numbers if XX% historical I gross wireless you question in right. are I'm last around Company margin going between thank margin. to that and very time. XX.X%, a and Hi, on had back gross my

comes question more higher there revenues your follow-up, you. blocking half margin or you back said Lorenzo, the what were I do XG is in more before? you does and level, second a is is, then my then and considerably? know So when it's how specific gross tackling, define that imply And quick something that a to and wireless to normal normal, detrimental, Thank wireless more versus down they are slows

Victor Peng

partition. first the take me let So

to part many kinds way different So the mean the significantly well. you way I that Lorenzo the of there. is by I look said, place terms right, as peaking, as need don't and expense really first different, there to you because it it's the very pickup is goes from it of in just of – the deployment margins, substantially. factors clarify, right, going back initial technologies, XG quite because very magnitude a part And of is it advanced very the think all, size. being got factors for XG about also far by of so over in a talking down about this its way, XG it's And to I continue And I from let some think you've want ambitious. stage begin think developing other comes about for to very early silicon while, time, on the we right, XG. if XG we're I entirety. think I'll is than about see then, the back starting for the XG we're is mean, thing that is larger I’ll

that's think way a strengthened, other broader it much across this heavier as get we trying we big get off look little drop to are wireless. markets we're and opposed bit the think a is should in at strengthened, I here what mix, I so that to seeing

Lorenzo Flores

Right.

are just in space So I a year and our the seen is communicate providing have seeing concentration I think the elaborate out bigger in really on It everybody in laid pressure and to Ambrish, margins. to point past, trying year want significantly margin. terms we we Day, we're shaping the at stay this this gross company very point is, terms wireless. is Victor puts qualitative in as knows at to Analyst that heavy the before relatively follows than guidance of What little on a or what a bit on in of gross

when continue as balance the second So traditionally in tried half in I like Analyst okay. typical, we to comments more out to ones that the we gross until Day. the think lay my I ranges in leave of we seen to And I I'm and elements our business, other I'd see will get to including have margin are mix. it stronger would out that pointing past. grow say That's at to that

Operator

line is Arya And next Bank America. of our of question from Vivek from

Vivek Arya

of more to my you taking would both when think question. on for enough I'm XG. that and curious XG XG? you growth on communications you for your enough get if what do even decent your sales attribute Victor, and that good one some – the XG at Thanks a displacement look communications side proportion still fast still at you the market big looking can year overall? you segment you're baseband growing And is

Victor Peng

be still very in of that be giving we're some confidence again, run I will more but of do with will But pursiness whole that the There there be story that XG will here, in over guidance XG baseband very Again, the yes, sort the but growth. with And deployments even I at early that full-year [indiscernible], think we're fullness to of of definitely that we think overall said. driver. innings We have not the now. stages some qualitative whole still everyone displacement very that, as I again guidance is degree want that trend we say, as I think of Well, growth of be giving the right. we're cycle want this Day. good factors early the this Investor depending we're will larger would upon a of deployment. overall, the the to say some we the tell knows,

Korea led happen So to initially, this way up the year. That's China. gearing for now they're going

the come this and is Some geographies will of the just along beginning.

Operator

And of Sachs. from from is Goldman line question our Toshiya Hari next

Toshiya Hari

also taking the talked around March data rebound potential Great, the cell? give a context Victor, you thanks can for the you about D center In June. into guys question. quarter,

So in to that, the March where and it's what with but know of related I cell with seeing reacceleration June? in customers you drove what terms most in Thank you. And are D drives traction the early Versal, the applications?

Victor Peng

Okay.

first, data center as I quarter, So is, traditional always we've data the center last data the the you in a would with to revenue as of D some bracket includes that know, couple and One had, of regards cell things. right. center

small, would rebound. attributed that so of some not expect acceleration, along. new a it does just In had emerging had but to areas, areas. And it with do I So was it. little some of include our that emerging business we've I'll had last it's was in then all say, that the the zero, customer and We talked to how bit one we pause, about that. pretty kind we not that to we've the but essentially a past, one but small, went had crypto first, of the mentioned quite business traditional

is the see interesting acceleration quarter. we growth that sort of business, customer coming pause, of the do back. off more that biggest took but to – we also to bit expect a opportunity, of and on last come where had has One we a Now with

for area, is picture multiple building I and emerging breadth we we've an huge here said, with customers. don't data still a it's as bigger have foundation I depth and think center the is been that

exposed shift a down have that. we will little when if and some But not breadth we're this there the key are mean pauses. it in and saw we be trend it's in trend, early seeing went I So phases bit down we customers a

that one not We We trend it's will obviously, you and picking said, had cell, quarter a we see D of be something that up because again. as I feel, projecting different but right. should something it's

Lorenzo Flores

finish rebound crypto, whatsoever. to On into point to our up it rebound brought the going about a no has just crypto Victor we element see quarter the the June

Victor Peng

Hari. Yes,

Okay.

Lorenzo Flores

Victor… The is interesting stuff

Victor Peng

So now on to Versal.

We're getting take we actually weeks short only from a as First, silicon that away expected. in-house.

we're that. excited So about really

early is I includes includes it's include engagements communications, multiple driving, the automotive would on out, have more start but when on Versal. engagements markets. provide If for and to We fairly to enough that's are does we customer anything things multiple pretty autonomous but of enabling sort we broad. in across us limitations very test, say sampling in see going stages, That that strong obviously as early some that widen once support of interest lighthouse

So we're very excited about that.

Operator

question next Curtis our Blayne is from Barclays. And of line from

Blayne Curtis

my just question. for I to and in Hey quarters you because guys, then to down margins the come have thanks for see step obviously a you last wanted revisit taking wireless March. mix big seen the in several the

just why one is March you're So quarter to step seeing the understand trying down? that

Lorenzo Flores

good news, against phenomenon Two news was reasons the about us. maybe One the wireless business for strong. as other very from talked is work bad which Victor is,

put So news, it but our that's pressure margins. on good does

other measurement The test a of quarter. emulation, couple in particularly below second, for end expectations our were in we markets, the our

on more margins. that So pressure put our downward

Operator

of Muse CJ next our line from question Evercore. from is And

CJ Muse

the center working all here wireless across offer you think could some clients there's where about those high over operating you taking in I and line, clearly Yes, data question. in time other of with with that SG&A you in particularly OpEx, op concentration, businesses? leverage not that for margins Thank there question, leverage, your higher where better good gross is see incrementally afternoon. such if would rising despite fact guess, customer a as lower story pretty first and line mix a

Victor Peng

little me and please then a let talk Lorenzo color. first add bit, Well,

center together thing one with wireless. data put So those you on again, first

to aerospace been corporate not strong certain While ranges things level. data margin what it's of our other historical or defense our much in kinds closer at like have is maybe as center the a and TME,

sure group I would not together. them of I'm both So

we perspective. again, to have keep think, I

is feeling And completely a right. everything I as elements there three wireless. though rises falls and there's on to our think strategy, maybe

where driving our growth So have FY had as we core intend markets, growth healthy continue of XXXX. We markets, broader we our data and all for all in to the to we step right, center, growth margins across meaning very that double-digit grow market.

ebb and we wireless about the mentioned, much other inflow do also not alone, despite how markets. it's of heard in in with So I for core we gross few we wireless. manage it's has think Lorenzo and past how it drops that we're strong lean in the very was with have into margin versus I've will doing had that segments just then And and our that always in said terms why to growth. are think to of carefully. I part strength quarters, But try the very on also and we doing you are what OpEx, other expenses going profitability simply in wireless really just reason And it more accentuated drop, we're

that We are of pay leverage isn't this keep future, anything we flowing growth. investing of are you see to ebbing confident some growth. but might the We're going that long-term a the course we in for to and going not do in but near-term, return significant

we get Versal, fiscal any that tape outs. doing opening an in will said be But mode. more leverage. we'll comments my that be once X-nanometer hear which at given Investor Conference see coming the investment about details quarter, more some will you I more may we You already of year, the in

that There we double-digit things position have to keep invest of keep our these what now that's growth ecosystem. have building We is. and rates, our are sort of to kind to

Lorenzo Flores

despite extract of discussion horizontal in of now I Yes, deal said, much Victor have actually it's over wireless, to extract that of in we and great a on we do ways. both out lot investments, time leverage our SG&A, lot to don't right those and just add our of a what R&D

So Victor out I provide of the markets the long in pointed expansion will our think end us profitability substantial breadth as run.

Operator

Bank. question Deutsche Ross next our from of Seymore line from is And the

Ross Seymore

Any to a down? quarter, the I that probably levels. remember to better with just was margin question and than start second TME if AIT on help half, quarter? a guys, your gross And you or back or it segments, said to and the names March can't part then needs cyclical assumption? you butcher going was it of that improve ask but new Hi in had Is the seems is called guys the why IAT weaker with like that's side. I'll in the wanted you expected second average more the of something you because if think What's where the just improvement, to we the company are that specific, that mix your in bucket get making it's color

Victor Peng

Okay.

So TME, me the I'm glad explain you first, let asked that.

a TME actually of recall sub-segments So the that. within bunch has got

includes semiconductor them of One test.

side, while, weakened. we a strong was test For things semiconductor very in position. in the memory But as all know, dramatically particularly

us. see weakened semiconductor general test for did we So

bleakly is in you transition one but sort we segment have a I maybe that I prototyping. did emulation will say think kind significant say to And can alluded bit of a that, Lorenzo of sub that Another that, situation. of customer

and some that, expected. enough also but So and testers, saw pause there exactly said strength, that of strength overcome those headwinds in because it wasn't there to XG being deployed, the advanced right. some was wasn't a we Having was

gross get So even because actually you again. better weakened, And second clarity, rebalance acronyms, because will wireless. happened the of but as this things the not again, the some out but of like a margin yes, course, when giving to PLAs, half enterprise moving on granularity. But things matter, it the strengthened sure that are much, yes, separating used And once more see kind – be more are is that still general to TME, play. you in about into elements do the we I at we all we have level coming FY of just that, again, diversity, think wireless it's proposition your I'm solely big sorry XXXX fairly gross other just point

you Lorenzo, want to... So

Lorenzo Flores

of Yes, in the second good heavier our some the business pretty but half continued up, will of them margin, And nomenclature. overall the will job, have half, revenue back visibility driving I gross gross as corporate back low, to AIT into the mix the two elements what's include year. large a of the Ross, our those on we other growth strength and them of some and you the average coming segment. into Those look actually we earlier. push relatively relatively first be closer margin are described to our did that

Operator

question is from from Stanley. next Joseph Morgan of our line And Moore

Joseph Moore

tightness have you. in Seemed some the on times Did that just on business like be gave and inventories would thank any that. that customer were like effect on any Great, there helpful? things us lead quarter comment your or you and substrates

Victor Peng

mean, that we few that things. of made would that mentioned those we you I one, manage something other I with. work say were were some there very challenges, there Yes. delivery things diligently to through have

think the I And around knows that, a we that. effort, through big managed manage everybody it but TSMC's was issue through photoresist. did we their

shooting And what you had sort execute we of due we heavily. I'd key very, say like shouldn't that I to caused we customers That did that. that what to So instance a some deliver were something is – that for all is deployment and take very away that, say would I lot it that had any hitting guess, date. like but wireless our to had of navigation impact for

anything well to not that. supply to our did had absolutely happened think to level. our really overall, at material some But I operations with that have with team So working regard chain get shifted

there So good but some were challenges. point –

Operator

line from of question from Baird. next our Gerra Tristan And is the

Tristan Gerra

Hi, good afternoon.

to-date? anyway XG have now sense want unit XG could much Given base us or versus how we you give wise you in station, the momentum of quantify content a the in could you XG

Victor Peng

we've right. just deploy shift back about done There of say, in and there you in said. deployments. products just nor more on our adding and many higher, value, be Analyst a XG the several some we'll same in to And this past. of And radio both, in also I because cells now macro traditional more different be of small Yes, of the XG day, doing and we've shipped is will talk particularly things reiterate there the types stations, more base but kinds form there the times again, just factors, we're different the go will then we're mean the station. because lot more, just not talked units all are is will content I'll base about radio, not

say, would both have going we in to content, qualitatively, to expect of more and particularly the I more generally, them. radio, So yes, then there's be

– but Day. Analyst tuned stay the for So please

Operator

question next of our from line Stein is And SunTrust. from William the

William Stein

said been smaller understand these pretty taking venture you. tie Can we so help in around is top XX from these and investments it? be my Great, heavy the the public you relates you else strategy and strategy as together, question. Thank what's investments things all you're think acquisition looking thanks understand acquired, the a How and this the help there's important fund. I today, it that venture may a speculation of portfolio you us sort you large M&A were can level here of that company some hoping announcing a perspective? M&A for to at investments, some better around but someone I'm

Victor Peng

Yes, quick questions. two

who our, you level I'll Let runs some add Matt, Dev. maybe me have color. Corp. some give and high

to of makes public-to-public looking "tuck-ins", only hey, we're would that? but aligned in acceleration strongly be So look like, I tangible strategy kind If what already be it's that to I highest our will and say think at feel may that be sense look guiding right. level, consistent course fortifying stuff will we've and and of strategy, to want obviously, run only the us, just be aligned been there should every opportunity, most has you importantly hey, more Either in is think bigger that. strategy, we've thing elements the the increasing theme it at at business, we're near-term I you we should do the the to add the wouldn't common actions, our long a said which again – or Matt, more and different for we've strongly we position, like in our opportunity. anything kind three said, it's full more say, with whenever we look at, I you for ever both the at what of M&A, we range. is it. very that

Matt Poirier

our focused We're we're strategy an We'll years. a ultimately ecosystem, do with more that partners, from we Those VC larger perspective, acquisition. the Analyst ecosystem Yes. helping team And last the has absolutely our the that point, from strategy the activity engagement that venture an But on. time about contexts to we with on of very the two more increase talk a a center providers, acquisition. in applications elements of more certainly that with down company part focused can Xilinx's that's Appropriately we're returns that. active the through aligns the that with and balancing I'm against That's an have a been build providing more that's acquisition. to provided anything to fiscal across for then from balances value engagement And Alveo tuck-in look that guiding all increasing the Day. in platform, will focus. our along Victor's investment do technology perspective, be the through the or achieve to business whether versus data we've

Victor Peng

software as also predominantly center. we've intention and as of to have But systems more which One out quite opportunity that data goes, in expertise the is and thing like, that, announcement IP team machine kind talked was to course, they of not learning, try of broad. just maybe broad, like center, our to a and data – point that actually and right. it's innovative actually deep networking I'd Solarflare about far the The related is acquire quite R&D that It's has that's specifically within it's DeePhi expertise.

complement strongly are in we I how opening expertise. our that looking think my to we also remarks that see

and of known to advanced and I metal think speak. we're lot really the well doing software a close being very silicon leaders so to

So solution will. can out IP talent up kind and higher I you and if us that going us think trend the getting see complements stack, other the is brings in you of

Operator

from line next the of from Chris Citi. question our Danely And is

Christopher Danely

guys. thanks Hey,

gross question Just a on longer-term margin.

So Vic, I XG think on the talking are and you said margins that XG is being going to the about average. be than below many corporate times guys you wireless bigger

gross level, So or years? the of a how that XX% margins hanging gross we back get out margins in upper few of think kind we to range to do should for XX's that back margins –

Victor Peng

qualitatively. I mean, let me answer again that

terms part bring that our reduction, we This this they're we other than at maps haven't Versal the attention happening arrives. are that phase very sort right, improvement. products, extent of and your some to we if to it we when cost certainly cost are this new right. In XG, said about of using the still road of just sooner shipping is that thing before in silicon have that, now have our they people other of in yet to they're early The technologies, on – of people do and is that room for reasonable, has reduce yields are has very other leading-edge communications terms at already, room there optimize XX-nanometer in cost looking advanced fact many a even of early to technologies, volume being is, it's our point our but expected deployed things for kind certainly

very And aggressively right. towards that, so working we're

one right. that's So point,

a we're value technology integrating that higher trying things general, we therefore And we create adding I support think more value high-performance through on side, bullet, talked and to like doing is, of things basically and to I no things the are perspective. other margins analog one that. right. And working side, market we're just and just what doing in monolithically. by the thing on there's other but to enough, about value say go is things, how both we like on silver mix would the the hard bunch It's at cost

we're what that's doing. So

Operator

from our is of from question And line next Srini Pajjuri Macquarie.

Srini Pajjuri

is? quarter? what was that's think clarification, for competitor the And just share some from do see your numbers what versus XG. and did you you least at believe you're adding up I in I'm you. I'm of I can primary on Thank versus customer you. mentioned growth. could some I also March a around XG. loans any Thank if put XG sustainable your Victor, XX% think that curious, XG, then just market in wondering picked how more driving you some have value then you the share versus you And clearly

Victor Peng

I'd more of that still to are we announced follow-on So out a just number that done Yes, we device. let when some think example. people but no for have time part. more tape based there We've performance of share now. logic the market that's in a already about is, been ADCs in integrated analog get products, value. high XG, the We've a we say, yes, going going that factors. talk One is We expand. early I monolithic expanded think to on might market me and advanced offering we to now. have – will in We might We've they with in Therefore, when one or kind share. RFSoC, which our first DACs. that's we're package Why they still so just absolutely. actually think talking in the competitor together adding In we think that are it. content days the first general, higher It's had

there point so out all SoC, to generations, thing element. a FPGA. what's all RFSoC the fully used integrated generations I has a would is is compared software other The multi-core being the pure a

other more was the have about architecture people looking is are which there So radio re-architecting being entire XG of generation, forming stickiness to it. of also having People are adaptive nobody kinds sort at all technologies, machine things and the other to right. where thinking learning

market multiple in so the and those a challenges leadership customers much we've to problem So our to of is more out to dimensions. meet and on challenging, we sooner, lot XG them value got delivering more are help

Lorenzo Flores

Yes.

concentration this close have to customers and respect question, for with – XX% to than are disclosure didn't the customers the at customer greater any time requirements we so XX% year, of year the our And that. for customer

the can I the ebb in that we terms table, it who's the But customers you top flow So XX% guess, requirements top we didn't do the we and specifically customers. of will, several for of significant have, have at any are – disclosure the year, if table. for our with of

Operator

from Rakesh of Mizuho. question next our from And is Vijay line

Vijay Rakesh

terms guess, I you radio you see there you by to the do Victor, the a time? radios, – with X also wave down you going getting Thanks. some gross And think as millimeter on of guys. change are hi in and competitive or do that go on side, capabilities landscape question go you when being FPGAs the how any gross margins XG, do forward? multiple see Gen on see X, the ASICs, margin in X-nanometer, just Yes, that side, still radio the you is for Gen replaced guys to trend

Victor Peng

don't will. I integrated other actually well of is the that again, getting and from we such players part, has first other to high performance overall just with and some itself, the don't no the the on you SoC capability radio think fabric but value the in Again, big digital DACs, that. have as the see of we things analog – ADCs one replacement. as And I really ASIC I either or if side again, there stronger. the for IP, side so even and Yes, areas platform, aspects strong the Okay. our not position we're do adding is

probably open greatest in of So baseband there. the been risk terms our displacement. much We've and very about ASIC side, I risk have that's we don't think

terms think family. we In in this about We the support talking process absolutely node. I will generation. Versal generations, of is product name are X-nanometer future of the a

that families we refer a sub six to have series. We

for have. out. with is there and out architectures still essentially multiple ways times but XX-nanometer every over said Versal modular, the investment fact and revenue market we for in X-nanometer I Series there of to a And the do our time be scalable good that a return. that's that end we a portfolio, we going entire driving with years number supplying, RF and When X-nanometer, the since an that So get delivering we generation. Again, Versal will hit is also we are against are

very a bigger node. advanced each with investment, investment, a – very a be big very it's getting still good it it – will So provide it's very But will a return. leveraged

Operator

And is our from Nomura. from the of David next Wong question line

David Wong

some Communications, you Thank for revenues of can much. baseband? feel Within your radio versus you proportion give us very what

Victor Peng

exact the give that, We I know don't and don't usually frankly, number. quite

proportion, strengthened and can it's just in we attend you the a think be revenue color. Day. still substantial please our Day repeat course, probably I question Investor have time, please But Again, let's right larger both say, We at the over but you both we'll radio again, - that of And now. will give more at Analyst have moment.

Operator

next our the is Susquehanna. And line question of from Christopher from Rolland

Christopher Rolland

in last the a in just XG up you one, or from BTS. more the on guys and guys radios following the And less strong recollection just are you seems maybe wondering that's as lot heavier time were traditionally it But the like ramp, a why, doing you in around time And just take base allowing baseband around. this were in what Thanks. better of that that part doing is it more to this share you guys station?

Victor Peng

yes, be stronger more anything, to baseband. stronger all, been will we if said radio radio, are and of we the have you reaffirm what first I traditionally radios. And than even there so want that, in in Yes,

really that a now One That's Now why right. is there have is people greater in on that products. few phase the that? UltraScale+ not have what early is things. right few strength we're right. right kind the old you're And of and and the is also we've There's very advanced, FPGA, technology that implemented still and this baseband, interesting, we of just in same breadth scale the

and to get there, The soon when then are Our right. pretty want deploy. Therefore, carriers deploy. products want We are flexible. standards can frozen very only to you people

to go-to-market and rapidly you a flexibility very in even adaptability dynamic changing very enables market. Our

which particularly ASICs that There to to execute have value required than XG I'd are significantly technical fewer the being hard. think the say, really the floor. I for it, capability key of well, coming assets justification capabilities propositions, is more the with our the now even counter in these market. changing companies in highlights either that generation financial the our one or are a side to So that

thing on that whole here. that we've are going taped always have doing think been out, of of very to candid degree super the all kind just do kind necessarily an don't of That which said, ASICs defeats of things in you near-term to persist. the going everything, need do I a sort relative and set we completely some changing, there's you That spaces it. of of get can't the So strength and the that purpose see order we stability again, in the ASIC, just have that to so with

we historical and than some be We X-nanometer in we've But X-nanometers, architectural the to comes, hope capture to will able levels several the it more always maintain position. taken then up norm. because innovation

Operator

time, the turn showing have that this back Presenters, to we lines. [Operator phone at over the no further And Instructions] call questions I you. I'm

Matt Poirier

X:XX today. us a this playback have call joining p.m. X:XX for thanks Time. beginning Eastern Pacific, Well, of We'll p.m. at

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

year fiscal be Our close. next after July for XXXX Wednesday, will first release dated the earnings quarter market XX the of

you your much We on completes our York hosting May participation. in XX. We Investor our City will seeing Analyst look to be New you there. and Day This forward Thank call. very for

Operator

Ladies gentlemen, and call. does conclude the this

now may disconnect. You

Xilinx (XLNX) 24 Apr 192019 Q4 Earnings call transcript