XLNX - Earnings call transcript Q3 2020

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Operator

Good afternoon. My name is Rob and I will be your conference operator. I would like to welcome everyone to the Xilinx Third Quarter Fiscal Year 2020 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. Instructions] [Operator

like Mr. call your Poirier, now Poirier. to conference. turn you. Thank you to would over the Matt I may begin

Matt Poirier

CEO; Officer. Thank are Corporate afternoon. good President and Peng, Vice Accounting you our Sumeet Chief With and Gagneja, and Victor me

for the Chief Financial and search the the outlook December this quarter ongoing; Officer and financial March new in provide a the of needed. participate fiscal will for Sumeet will and I Victor a our year quarter business a remains for portion As call, review XXXX. as of of business Q&A call

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

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

It to This accessed conference open call our from is live. Investor website. all is Xilinx being can be webcast and Relations

turn now the me Let over to call Victor.

Victor Peng

good and Matt afternoon, Thanks, everyone.

expected into results and provide on reduce played million the achieve to we the of operating near quarter share jump of better-than-expected fourth fiscal earnings an We out for were our the non-GAAP Overall, the XXXX. per earnings anticipated. quarter margin GAAP me for expectations effort $X.XX largely $XXX.X quarter Let right revenues midpoint our and range. Total a as our expenses made update of and concerted share $X.XX. operating third of operating per revenue

highlights quarter, Zynq approximately Now, XX% year-over-year for and decrease The a which higher The Advanced nanometer MPSoC at I’ll revenues turn to despite both at Products includes of the platform, and a in XX% and than total of wired XX third wireless Zynq-based period. which RFSoC year-over-year. year-ago revenue constituted X% third SoC impact weaker of total quarter. nanometer, revenues, grew is the the represented Zynq XX% category business. XX of

our of tracked strong is indicator see platforms. in Zynq markets, across target a transitioning progression to which continue our positive to We

as beamforming our on Our overall XG center, with growth the generation that communication the the growth engaged we XG build continues and executing OEM market customer by and a based includes is for X-nanometer radio as global automotive Versal our in ACAP. core design we actively second in our In data the markets. of engagement non-Chinese are markets, for to as positioned momentum growth strategy long-term on well profitable accelerating

to FY Versal by communications, well shipment XXXX. begin late Versal continues several of markets. production end across be Beyond Well, customers expected to received our is in

to revenue initial We from already early recognized customers. shipments have

also on by their platform their reliability shared that and center that running in and customers. In traffic They of Singles the is unprecedented announced the powering services is systems Cloud data used Xilinx security RFPGAs. during proven the center, being China data enterprise Day Alibaba has cloud

demanding unveiled in of cloud. Supermicro the two algorithmically some addition enterprise in platforms systems new In workloads the Alveo to that power and most the compute accelerate

now earlier, On users, announced development the free the Alveo software latest board. as Vitis front, download platform for available is purchased who and to

the Vitis Caffe. We utilize availability framework also announced that AI learning of TensorFlow developers platform inference development software and acceleration deep to the empowers like

dedicated Computing computing announced for we is Zynq the industry’s Apollo Lastly, parking, this Baidu’s production-ready automotive valet application. emerging Unit solution MPSoC powering our for automated first

Moving groups to markets business of third review and core a of the our quarter.

ABC declines Our and TME and and impacted mix our A&D core related less-than-expected automotive more-than-expected. markets. mix expected in market, We This higher albeit helped trade ISM blended across AIT drive gross performed and saw headwinds revenue macroeconomic some in the adjustments markets We with customers margin of as prototyping emulation while somewhat quarter. in less-than-expected. from revenue corporate and saw a increased

and compute customers. The to as expectations somewhat sales group hyperscale the and Solarflare data revenue from networking center in quarter. from benefited both Networking performed outperformed products of expected

of global We delays revenue shipping by performed sequentially. and from class and some revenue group largely anticipated with wired as demand high-performance was anticipated customers. however, transition OEMs. wireless this from and ASIC weaker also with our Wireless some offset of and storage program related both wireless saw computing declined crypto the down increased customers meaningfully one memory; The baseband because wired

Now, moving the financials. onto

than revenue year-over-year was Data $XXX.X XX% mentioned, down in XX% a sequentially. revenue sequentially. from group X% declined quarter. sequentially. million XX% was that and group record and X% Wired increased I down down was and XX% sequentially X% revenues up center down As year-over-year revenue was XX% declined and quarter. year-over-year and ABC XX% sequentially. year-over-year Note that revenue increased XX% one customer XX% was AIT year-over-year wireless that we revenue total of third the greater had communications represented down

at below reduced $XXX hiring and due discretionary million line Gross growth gross $XXX of with OpEx $XXX GAAP to with of both at in and spending. significantly margin non-GAAP non-GAAP meaningfully XX%. and margin margin GAAP expense million XX% was expectations were of operating million guidance

GAAP operating operating million million Non-GAAP $XXX operating was income margin. or $XXX margin. operating or XX% was income XX%

X% approximately was and tax non-GAAP X%. rate approximately Our GAAP was rate tax

diluted GAAP net $XXX XX% billion we $XXX.X $X.XX, billion in from in was million was year-over-year decline $XXX and year. $X.XX, quarter. income share million earnings count XX EPS income to a was and XX operating is decrease. per from a at XX% days down gross cash Diluted cash $XXX long-term non-GAAP share with to was flow. $X.X Accounts last last million $X.X $XXX Non-GAAP decreased Overall, generated million diluted were net decreased days receivables million debt. and and

$XX.XX at of dividends price approximately and of X.X million. paid an average per shares share During the quarter, repurchased we’ve $XX million

from Turning revenue We now quarter perspective. QX will still for be the to outlook the low fiscal fourth XXXX our for quarter. a believe

our However, gradual more recovery quarter. now had to is than we at anticipated expected last the revenue the of be start

which fourth to of approximately $XXX million $XXX approximately X% the but million, at quarter revenue guidance total between the is down sequentially. and be expect We midpoint X% year-over-year, up

revenue greater-than-anticipated being meaningful it’s improvement growth our and quarter is weakness significantly WWG. offset by moderate markets in core by in in Fourth driven growth DCG, but

distribution from growth our modest channel. expect We

on AVP be somewhat QX. ADAS and to be Both also QX expected prior to for multiple in customers’ sequential with demand increases are are programs growth up we A&D and markets, ramp. our Auto to strong core to as emulation expected QX. is consumer prototyping for as relative weaker. expectations ISM recover expected For track and revenue are in

The is less moderately, DCG revenue grow expected expectations. somewhat than albeit to prior

continued a contributions compute by and expect cloud from driven performance We acceleration high of mix compute customers.

continue expect and slower from production. storage stages the we see additional cloud be customers, to that and networking early the to will given the expect to DCG likely move we’re of into revenue scaling lumpy ramp revenue business. customer POCs We in The

result revenue both declined for now more The wired and XG expect take rollout wave across outlook infrastructure to WWG. a a of in multiple our as slowdown previously additional QX wireless The negative significant before than from many pause the of has wireless in most are regions change deployment. business operators impact anticipated. next We is customers a

based wired a multiple are being impacted customers. addition, by in demand revenues In across broad weakness

loss in the XXXX QX gross headwinds to Now, XX.X%. FY of WWG to impact of may. be expect the revenue margin FY now XXXX. that from Fiscal improve in to We non-GAAP revenue approximately to since expected Huawei is down these are last versus addition

actions our global reduce more and we’re a headwinds we’re the revenue operating to meaningfully facing, to by force targeted X% persistent structural drive efficiencies plan several approximately to replacement. slower taking Given workforce company. We the of attrition reduction across

efficiencies several addition discretionary we across the spend realize In to operating additional business. taking are and actions reduce

approximately by in quarter legal to to expenses million actions approximately we million, in $XXX Excluding reflects from is savings quarter. This expense to the the of tape-out reduction spending This profile. to of reduction be offset $XX expected expense operating plan related million the and take fourth various severance non-GAAP is X-nanometer the to adjusted expenses. increased operating force, related which $XX includes charges

Non-GAAP other was million income customer for be IP recently the to that acquired. approximately settlement due primarily to is an expected $X anticipated

Finally, our approximately expected rate tax be is X%. to

and stakeholders. In painful, trade-related business all and believe of that other persistent our we impacts headwinds. faced with taking best actions were the closing, we interest decisive are with are We Xilinx’s thoughtful were in

growth the gains see our opportunity extremely core well We and infrastructure and to as platforms. remain as long-term leader across continue XG adaptable trends expansion foundational committed and secular markets great our to in data a We automotive profitable drive share second center, a TAM growth as strategy to markets. in in focused

Operator, we open now the questions. for call

Operator

Morgan comes And Joe line of from from first Stanley. Instructions] [Operator Moore your the question

Your line is open.

Joe Moore

March that transition and kind still I that Great, Huawei you – would wireless there? baseband there? said back as are is we of the wonder progression the about do the had know, awhile? it grow from you thinking beyond thank going Is you the assuming you is to are that done particularly mix. what think the you progression quarter before case the be of the largely take you. don’t that of into Just Can what by you what impact get

Victor Peng

as I Joe, what last baseband did Yes, impact we the in is quarter expected. mean, the occur said

applying, you’re that’s not that’s if correct, new news. So – you’re

guide quarter kind multiple in overall weakness slowdown did news. of – from the wired That the anticipate and geographies not on for That’s wireless then you both deployments right. level we’re the additional last we pressure gave both the on is not side. the You’re when in across second half. as new the Really, of quarter weakness well the feeling side current

think about the would at how giving broader in be some list. of terms the is, clearly, picture levels the in going would Huawei forward, that that I from is I we entity be. to change on if account it to really that that even perspective, revenue that in but were don’t that but entity remains think list meaningful things used I guidance say we have what In here, XXXX, not for we’re FY we guess headwinds near-term, a see

of it I think reality now. we how it’s just think the about and it that’s

we’re longer-term, that’s And engagement we’ve got still things actually been opportunity good talk certainly in sure second wave, about some a However, reviewed our the challenges with already so comments relatively all and days for first of our this XG. been other because talked and had for non-Versal heard still is the some rollouts. generation, like really waves when growth customers it’s first technology speaking Particularly, and when good about they I the I’m like we’ve people customers, ACAP. see the to innovating think RFSoC we as my And you’ve we three more using but prepared we me with and design. ACAP. point think of Versal

how that’s about the picture. think So, big we

Joe Moore

is clarify of an mostly done headwind or Great. to And quarter baseband beyond to the March in in impact transition. terms there just the question that of the the ongoing my quarter? kind current is

Victor Peng

it’s happen quarter a that it not we out. it, – about It we and keep Exactly. not did in. happen. It’s one-time way event. was the it’s would it’s we it we I mostly like guess, It think factored done, – expected in

Joe Moore

Okay. Thank you.

Operator

question the Goldman line next from Your Toshiya comes Sachs. Hari from of

open. line Your is

Toshiya Hari

program market much insignificant those delay for you transition, wireless in or something the talked were guys. your you to anything mentioned remarks, business Thank four has I the And your three or is ASIC stations, two question. given higher and still more December opportunity issues, about talking quarter? dynamics higher importantly, having XG on Hi share. much of long-term? about how relative guess content significant Outside more you about one about there Thanks intact more taking Investor Huawei, the at customers, prepared of were Day, base you the your to very changed everything X in very in talked guys our you. Victor, when XG

Victor Peng

Sure.

of than – that, do Huawei said, portion but opportunity we it’s as significantly you larger if you a Let that understand from me do move okay, last XG. it’s the on is exactly think first, still sort significant, and

different to Now bigger issue in we hired of storm perfect which from one anticipate us the really in have general OEMs that a the QX delay order the affected, of I a we’re was and of pause working customers and or with, a kind you about that that’s is carriers multiple the still really QX, with. program on should reflected in a didn’t work confluence around a bit The delay, the allowed back just causing them right, sort the kind we’re deployment think customers gradual be seeing the way across bit highest recovery slowdown seeing all that deployment the and working the it with see regions. was to in are going program thing. but think more we a from another in of all OEM geographies is essentially of slower we’re Is multiple the that headwinds that factor, the to to that’s we

Toshiya Hari

you. Thank

Operator

comes question of line the Susquehanna. from next Christopher Your Rolland from

Your open. is line

Christopher Rolland

the guys, question. Hey for thanks

on first guess I WWG. So,

moving it RFSoC is MIMO. purely with will where could do head and or it example, that to is it also, you then does from radio pause, this how if massive to are addressing, applications the or about something think with have remote that basebands, So, talk you we are rollout go? And geographic for

Victor Peng

Yes.

are do right; the think are of particular fall that multiple though it different On of to with there broader carriers a our you’re XG. that that to as we any is types question, under the of seems see invest. operators we fairly umbrella a I that regions just the in and as rollout for It technology technologies a OEMs deployments well don’t done some my more pause, taking both has seeking position cover profitability multiple they event, just they’re initial are But and broad. as further and talked

perspective view again guess back, think to And a phase didn’t view the I come very it’s I us. opportunity of again, then seems – very for have right have longer-term very still in we and keep now like the deployments long-term that all we’re in the that terms first So, anticipate. that, a and like pause again, in just we will only good we that

Christopher Rolland

Great. data center… And then on

Victor Peng

quite your just what answer realized, sorry, I’m I I didn’t RFSoC.

Christopher Rolland

Oh, sorry.

Victor Peng

that multiple being we regions and So different OEMs millimeter both in RFSoC, but in well, wave cover there with we do different have think as sub-segs, deployed bands. that also there’s some strength

the deployed. early still We’re in is speaking stages, but relatively it

out So, multiple regions it is OEMs. in the multiple there and through

apologize, cover that initially. I didn’t I quite So,

Christopher Rolland

the or coming talk customers? Thank data and any progress even Victor. And AI think had problem. there feedback are Alveo nice I in No actually cards. any your or side, soon the you either have where roadmap, hyperscalers core center we you, on on from out a Maybe, you now. had But sampling maybe about

Victor Peng

so. think I Yes,

talking some you’re the respect Versal board. product the – and think have our Versal to we when that’s about I development do think I early AI engine,

the So, clarify of some brand just to names.

is the excitement and in think application let’s do camera, are but markets; I in some in also deployments good augmented I an that’s silicon, interesting in kind even of where XG, some being other to markets recognition experience. terms well, of in people a image high-resolution for just evaluated though certainly, one multiple that the it’s already doing also very entertainment as data even doing center, in see – there alluded some initial reality they’re to

the not quality in a just but so on right. would initial that the good cloud, our what’s call the some also application, that, using you of might of people maybe, but platform, AI not that people breadth And that edge are considered silicon, that’s indicator think I an only call

we’re early it’s So, diversity – that pretty about still days, the getting. was we’re but traction and excited the it

Christopher Rolland

Thanks, Victor.

Operator

Your of CJ next Muse from comes question the from Evercore. line

Your open. line is

CJ Muse

subdued guess of a versus is taking for walk kind you question. in the the as the permanent few as years? plan will Can you software well on Thank understand as more margins guess coming can restructuring. afternoon. importantly how Thank you. help temporary what – and the both obviously through you Good as I Yes. invest, you question the us environment well this I in in deliver the coming most to operating stack

Victor Peng

of of trade persistent China-U.S. a ongoing what the Yes, mean, it these happened reflected that Look, weakness, company situation something we some good that we do of of is, proactive now saw clear I as attrition our we and for reducing I the and was as actions from in reduction to through the of that that’s more CJ. question. reflected, started matter when a think it’s controlling as even some walked the It to structural, some force us our late whole painful something had targeted employees. that in this to was replacement. seeing But portion significantly effects as Really were impact Huawei year, labor took right. control a some QX. that’s good in very well both severe that first headwinds and we expenses was also, just it the business that more we a is

So, ongoing labor component obviously that thing. an is

looked the many just other we’re that of at some but discretionary programs. doing spend, terms Now, in also actions things of other even we

of long-term of how is near-term goal that’s degrade we our that here think our I very in. coming remain We’ve both to. further and spent because time out nor business achieved confident you’re thinking I alluding which what and a not that opportunity, we’ve to about course; lot think we’re impact

expect a in quarter, seven we the OpEx And in we’re doing certain in I the prepared think in nanometer but you the tape-out mention quarter. level heard savings that a remarks of me

that. of somewhat offsets So all that

reasonable matter, in much for I profitability some So, bring And sort strategy. or again, in we a but I subdued, here, but future will still committed balance of we’ve not good think, business. said, in executing profile, to difficult any the things very materially way more us think of that in that are you like decisions a anything there’s a near-term more the impacting environment, even revenue near-term struck

that out efficiency knows towards we drive maybe very get business those to our the as recovering, in leverage, because and back of in do watch will even it, growth carefully as grow trends. more have I think we we OpEx position

CJ Muse

you. Thank

Victor Peng

welcome. You’re

Operator

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

open. is line Your

Tristan Gerra

give you started. see on commentary Hi, are wired the to taking good barely U.S., across the ramp afternoon. the that deployments I’m in color the some weakness pause you Also, us trying Could reconcile Xg business? a has geographies, in but the wireless

So U.S.? and you and you’ve on few the could specifically in do topic, reasons the could if the I the if but the maybe, pause rebound when ramp got know expect on of with you a you elaborate already questions elaborate and to

Victor Peng

broad now this right don’t again, persist to deployment, is multiple now, Yes. and talked U.S. it’s to customers. we geographies, as just virtually well, – different after until support but see done they’ve mean, as you of course, the that serve it I the that’s now. just the the some that and tell that know, We second across be clearly is and a comes. do materialize all getting really to without feedback softness that also we’re pause into think something we what the specific includes It’s including OEMs carriers we that all OEMs the going necessarily wave the this some that hard is that’s regions the because seeing do see visibility getting I demand not when both seems they’re there from is necessarily and the to something we’re not U.S. think I right appears

about next predict us the equipment, for recover. I Yes, I when the back obviously, the when rule have wave restarts. hard current business again, deployment, come good of already But that going of feel that could to timing actively opportunity that to, our more then have there. we of look also in at good help generation still I there’s equipment. and when it’s we exactly engagements, the

Tristan Gerra

mix then nanometer? a And could quick you your at give XX seven us versus sense nanometer Okay. of

Victor Peng

is track with is product most generation. our all we have the successful hold family and XX in the XX in back – programmable break Yes. there portfolio our space nanometer nanometer that the the seventh is on to series XX records we

the is for a We’re innovations grow have not the fact clearly we areas, executed, to number number but tremendously revenue and RFSoC to going out years. outpacing that of continue that’s are and due with that, and successful MPSoC, to that’s some we of only other that

ramp Seven and one more production. traction and good lot defense, as the But of nanometers, the of remember of revenue data a in we’re time So, looks, video for already, does area of I But just sampling will we’re of in in getting markets revenue. And kind more that we’re markets, particularly aerospace right? and sort But we know, board. of it some us these stage, still is mentioned that you getting have multiple strong not communications. usually very area, to good center, broadcast lot in a take the development to demand. meaningful

encouraging a So, sign. very

Tristan Gerra

Great. Thank you.

Operator

line question comes from Ramsay next of Matt Cowen. from Your the

line open. is Your

Matt Ramsay

helpful. you. second part changed the question Thank of in introduced? the I Vitis software business. there’s question force, like guys as the very but level cuts you guess being And customers investment level guys that to forward, Yes, thank the wanted in related anything progression, And is stack investment, reduction of going that ask across and more with engagement prudent investment if and software the the the to guess I that CJ’s cost – early the much. has little to specifically, the on and look you that it’s would a afternoon. be there on of you from Victor, I how bit that at on Good highlight really separate stack

Victor Peng

a in relative SG&A we’re of didn’t that Okay. R&D I guess, part the doing touch basis, relative general, basis, in on say Yes. related we’re to like I productions on okay. maybe, first, a in than so on labor doing some more that we’re Yes, thanks. it. going to of

in growth. areas invest also again, to are continuing We critical that are for the our

on making also So, software just and silicon I and fully it’s we’re what forth not the you’re that point agree. we the doing think both so roadmap, IP it’s

So, we at that my to mean didn’t tape-out. just comments weren’t imply sort – looked of

all – we items We of, yes, execute when focused to on platform. more platforms and terms are we a are out the dial-ins need, strategy move towards more we we need immediately. new targeted also also they instance, we and everything see fill announced Vitis for Everything mainstream be those be into much in webinars or training,

So just It’s that’s when for in training. really developers, of but everyone’s promising. encouraging. as end the on are we at day, terms certainly revenue, to other the all terms in I look looking that very in know get videos various at – we do of the looking hits of things we I measure

So…

Matt Ramsay

and be win Thank follow-up. having quick portfolio, the guys you on I on traction revenue SmartNIC company might and just Thanks. the next the that can the XX, you. you design us to to a data an update material the In wanted as space months. side center over And if XX ask give be to the

Victor Peng

I for revenue quarter was think, I little mentioned Yes, kind that Solarflare instance, higher-than-expected. a last of

It’s that record think for modest still a relatively revenue. was them. I

in will on – and software fully expertise think going platform. that clearly, bode And all our think their realize we very expertise execution stronger integration really position hardware when the I system we that the And with even positive synergies level does I well. well. of get is

a significant. I I opportunity it’ll in reasonable. the do year think multiple And be is years. for is And I think, that beyond think grow it’ll – terms So, and smartNIC thinking of

Operator

from And the Srivastava open. is your Ambrish your next of line from comes line question BMO.

Ambrish Srivastava

the i.e. this this seems target and to not time. so again, again, would you again, And a or Victor, a growth the mid-teens not for wireless you experienced to see about you ASIC the said you. first done, it’s and see when the us repeat then of question it just I say that that just second and repeat why longer-term you’ll Hi, ramp – would had headwind is was but should the dynamic on does reduction, you. my growth out a again? sizable thank you it – was, starts a it company? be kind this that transition this one-time the understand Thank question. help what pretty what And was laid have the given occur why

Victor Peng

part, think replacement I when expected the on look, that we we the said in ASIC basement. first Yes.

the stages when had I wins and said and ordinarily way get Korea there in deployment, baseband an think we strong from in anybody and very don’t rapid early that South Xg upside was only the we deployment we early because which get to using our to of get people can there. the had enable market was adds but that, technology, had is was We one market be the we and value didn’t now we we that quickly. agile things longevity expect

back clearly, other and over one take I time. at that a hears So, to, for for – aware long meaningful weren’t ASIC the everybody impact I know by I want guys are ASIC our totally high silicon lightly, is ship and when Huawei. against don’t silicon we’ve I we well example. about Clearly, this by mean teams, by means I is we and nothing OEMs That’s right? with high Huawei I people familiar has just you bring don’t decade. new. ASIC know replaced either. a Huawei a they couldn’t all mean, have the was competed a any marketplace, to had silicon has but competitive it’s I there that. that everybody high customers

things against RFSoC, Versal own side. IP with able still we are like on win are – even we customers, with the think things our I to because like ASIC, continuing software and innovative to innovate

could mean, good strength but I in So look, yes, could. we again? really traditionally this happen radio. have It

innovating, and business. we on we’re be focused We’re this very rapidly to continue moving

very significant very is that of impacts maintain this situation feel here. we trade the despite those a like long-term the big So, we in opportunity that

that side, ASIC part was repeat second So all on the question? sorry, you of can so I’m the

Ambrish Srivastava

Yes. Yes.

last you the reduction mid-teens was helpful the was a that I for that’s big perspective. for that, for remember reduction growth that that. have seems What to does time given out you So we but what asking what can’t speak the guys, saw such company. the laid Thanks I

Victor Peng

not Yes. as I not, say to to back in getting I Look, But said we guidance do growth. look to would what double-digit I we’re that call. give going that we’re is next FY to XXXX absolutely are the committed before, – now. of We

is rate. kind that of it’s more this run to up come the of that little fact bit to going think I a a to gradually a recognition get

committed We’ve We’re going steps to execute some opportunity a XG, in core building not longer. think, automotive again, to – here, this only had center, we’re and very but take and to difficult that that because is doing our strategy markets data well. significant I and continue to we’ve have I to as it our take fulfill, but recognized we think

Ambrish Srivastava

Okay. Thank you. Good luck.

Victor Peng

you. Thank

Operator

question next your from the of from Bank. Deutsche And comes line Seymore Ross

open. Your line is

Jihan Shang

It year be Hi, this like for Jihan for letting looks some looks XX% you XX%. Ross. versus Thank ask DCG, is the question. me the the the guidance for quarter; March up up growth prior in to with potentially even were moderating

to the Are I has changed transitions what guess some proof-of-concept So, moving customer in growth? actually being from slower-than-expected production previously? of a DCG

Victor Peng

And double-digit. this you giving But be not we’re in mean I out that’d consecutive when double-digit. it is still I of that. reassessment two the an we years think, Look, Yes. growing takeaways, year, fact, close fiscal of overall

proof-of-concept of things taken have it’s general, said reflection like you these think a a as in bit I still longer. some

an other sense, It’s small and than it’s scale, emerging far the well. market. we’re also business. not are even you little it’s growing where it’s you maybe, get think in takes the so though an very slower it’s get quite a bit puts just, usual absolute upsides, fairly of business things certain I growing

the the continued call engagements very And said growth think, we the just still where on of I a diversity and of previous that I double-digit think, business. I we higher measure different that think the get as we and get that and on less for of good design near-term, quality the about quarter-to-quarter we’re that programs I’ve feeling to wins sustaining the better of is those the more bases, see wins are we different But see kind have and we’ll volatility. that scale do good of timing kind

Jihan Shang

And Intel's clearly the if good to some calendar the as company, had Okay. has growth compare market just Xilinx gains last business, Thank share Xilinx’s you. we year. PSG in

within even of Huawei face the guess I So, challenges. head

can little the guess So, dynamic? you I about competitive bit a talk

Victor Peng

it’s grow gains, transitions prepared if those very but right. things has early continue markets, of a very, in But been And it’s to just of point, Yes. to market. TAM some some right? in I are to different played also a strong; few how our markets, little mean profiles, that very quite and strong also we’re played my design have the be of in even is at mentioned markets. key progressing take strategy And of right? RFSoC, activity to of out, times growth move our but that I because how will, core some you accelerate seeing expect continue quickly if well our that being core a haven’t and to the look Zynq our do markets to tends out, interest our markets business TAM, a expansion, longer, markets we the to in bit to fully solidly, share, and time types Those a constant fully in share key that core of growing part it’s your you terms

Operator

comes your And line of question from America. bank Vivek Arya from next the of

line Your is open.

Jamie Zakalik

this pace similar is Jamie FPGA me cycles is that for you’ve Hi, it to product? the a the you front-end or competitor Zakalik pace do radio in for more the Avera see direct as on in ask the of is a limited and seen Is replacement Vivek. side, past a digital business this And letting Thanks Marvell’s complimentary on question. baseband? replacement Xg a then the to

Victor Peng

I I really I say the and there’s hype it of of to must similar guess is I first, to really marketing of standards, think must that but say, or sets similarity? Xg a of about standards of more around been is level the set thing lot And Xg XG, radically as what disruptive how the technologies. know a

IoT, how is which the it’s about. how data will companies is different, XG much to so are be many all automobiles, think right, saying homes, once things and your it which have I fully why not So, voice, change we it deployed, works much significantly changed; it’s it’s the is from invested going and simply other and

of different think when So, through I meaningfully really do some cut buzz. it is even marketing you the

where value are in a FPGAs powerful right. – FPGAs – A just era. pure than portion side our upgraded, the Xg now our in XG it, the is our of are our not in good also products and Now, of customers we deliver more much so to state-of-the-art different good meaningfully meaningfully back to,

with fronts, is of larger. There’s up the been pretty are what game. magnitude left think that their customers, we So, into I have what don’t again right, would to out. the value. at then we the is including anything to included. larger. and us to specific opportunity, the bring own easy do, on real side, And I lot people ASSP players the our a about solutions. on want consolidated All everybody’s specifics I say not from competition ASIC not table it’s good ASIC ourselves have a of both not disruption it’s to they is new compete get competitor. create solutions new. for It’s solutions with

and what quality the provide support, to on. excellent will that that’s have those We doing, focused been are things we we’ve great remain and

Jamie Zakalik

Thank revenue on some any from was was Great. If it forward-looking the of removing And details Huawei? in follow-up, not, guide? give percent QX. a Huawei you Was quarter you. you give what this just Could was? customer one Huawei that XX% mentioned then still in details and you’re on I you on could confirm – than greater of think quick customer, sales that who

Victor Peng

any meaningful only don’t with. because Okay, have so revenue there’s We from Huawei, still quick entities clarification.

we like basis, starting pretty if comments even Huawei were on So quarter clear the any, it’s – and go-forward last taken from now. from even is moved they out had about, really Huawei a about

list that used to remained level be we the never at they’ve that long as they that, only will the that revenue have as Given in have.

So, it’s the definitely specific not for Huawei, but we XX%. don’t share of the details customer

Jamie Zakalik

Got Thank it. you.

Operator

are call some this over turn questions Victor to there time. remarks. closing no at CEO Peng, further I back the mr. will for And

Victor Peng

the fiscal close back call, to that year. before where we clearly, Yes. not want we if end the to expect I we be this to share of go just Okay. this start of Look,

trade, important relations of and really unfortunate has right the I U.S.-China on think some specifically, time of made in few industry we’ve It’s the on in unprecedented our the We beginning deployment part both change marks discussed business an XG. basis. proactively QA clearly, accelerate in in growing impact I and the to is thing a that’s at of including well think appropriate a what do, business once slower, one position back trajectory an painful very But in the and of do And times, to difficult very, very the revenue get as in But us given force. that reduction decisions a as a terms is in targeted does It’s it’s near-term to that markets very I trajectory. the that the think doing growth very a I as that fact of at sight lose we is, again annual efficiency of to a think strategy our growth solid. prepared growth. very well core leverage. well our not a core

And business, like even remember see to talked the we continue early It market basis on from at for consecutive quarter-to-quarter there. fully time, looks still will relatively a while scale, is to same we data about a XG, greater predicted. an the At tends And people and we’re much and basis, bit. not important annual with stronger double-digit XG two some it [ph] that innings it’s still started an on achieve emerging in and than out quite it worthiness earlier center years. out we’ve growth opportunity

engaged. we’re but spot, soft a having we’re Now,

with may kind innings come. to OEMs more and engagements We there’s top have right of the still

bullish overall outlook long-term drivers. in terms our of remain those growth we in So,

being So the it call with turn to for back that, Matt. on over thank and you

Matt Poirier

today. joining playback Pacific, time beginning of this PM thanks We’ll So, call for at Eastern us X:XX a PM today. have X:XX

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

close. live Our fiscal next for we Both will be attending events note This Stanley Wednesday, April in your quarter Please March. after for market Morgan completes accessible be the Thank of be release in the Goldman conference very be participation. that year webcast and XXXX our fourth will IR date XXnd will conference much the website. you the our and Sachs will February through call.

Operator

concludes conference and Thank call. today’s Ladies this you gentlemen, for participating.

disconnect. You may now

Xilinx (XLNX) 28 Jan 202020 Q3 Earnings call transcript