XLNX - Earnings call transcript Q4 2020

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Operator

Good afternoon, my name is Christina and I will be your conference operator today. I would like to welcome everyone to the Xilinx Fourth Quarter and 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. [Operator Instructions]

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

Matt Poirier

outlook Thank and you, CFO; the will good only the CEO; of our Christina. last And review Accounting financial recently Brice the Victor me Chief quarter. March for this wasn’t the Hill, and Peng, joined are quarter, Xilinx the business our here Since for June provide new Officer. and business and Gagneja, afternoon Sumeet quarter Brice everyone. during With Victor call,

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

to acquisitions. amortization excluding supplemental operations financial items of comparability will business measures, unusual period items addition of to In GAAP for as to measures continuing be non-GAAP disclosing purposes effects certain evaluating by used the financial period intangibles related we measures one-time non-recurring results. facilitate these to such to certain company’s financial of evaluate management by the and and We provide

in live. website. website. Xilinx earnings financial is ongoing conference accessed business. be the can call to and is included We been Relations Investor This has our Investor posted open GAAP release Relations information measures all measure A helpful reconciliation believe being It analyzing our and that be and webcast on will our non-GAAP from non-GAAP investors core these to in is closest of for company’s the sharing analysts

Let over the to me turn Victor. now call

Victor Peng

am thanks CFO today. excited and Xilinx Matt I new Brice today’s Brice have call. earnings your call. us to Thanks welcome to first Hill, everyone our for joining joining

Brice Hill

Thank all the of thrilled strategy, of future. and I meet the join am am virtually contribute products, and I to to you with just specially the the and Xilinx. the to nice Victor. you impressed leadership company It’s to online excited vision team

So thanks Victor.

Victor Peng

Thanks, Brice.

me XX outlook business to our a let and impact few we’re for on our to potential assessment on spending start by results minutes before and actions QX. our taking COVID-XX address of FY QX moving So to challenges

the each coronavirus, guidance be Because of environment business safe to and I of uncertain due we one hope XX. year FY families your that are staying and not providing healthy. you will for full

to express century I the globe are want Our this by fighting hearts been those take a frontlines personally impacted our pandemic. of who go COVID-XX. to have who gratitude healthcare on once this all also opportunity sincere to in to out workers around the

As mental employees ways our highest working, being well we’re to of and adapting of living our and priority. the all remains new physical

return health except hard work-from-home restrictions we’ve globally, worked of many part China employees social our their as work-from-home to to have We’ve where implemented measures and practices, work. productivity. employees for We travel in We’ve safety enforced improve strict the been distancing have taken other adopted allowed employees. experiences of the to have also and our

expenses than year. I’ve communications there enable means items informed communicated enhancements, better to this internal appropriate addition as the of alleviate job no the be rest focus, by that both We’ll To increased our In to anxiety workforce we’ve other some employees engaged. connectivity will and calendar reductions keep control elimination. and during

our we’re As fight COVID-XX. doing to part company, a

expedite and to ICU beds healthcare provide formed which patient ventilators, product we’ve shipments. I respirators, our powers monitors, in customers, millions play that industry force role like medical task a of patient assistance, proud devices our am a For fulfillment combating special technology coronavirus. prioritize the

thousands medical late we FPGAs of Spartan-X systems. In maker with China’s monitoring to Mindray January, power patient supported largest equipment

the to We’re GE well such supply medical suppliers and Europe working companies as support largest currently some in U.S., COVID-XX. Asia and of testing as as the to for products in Healthcare treating

several $X.X addition, In total WHO, of non-profit institutions. and donated as well the a Xilinx local to million organizations regional as including

update our our supply on from to and now impact chain demand Turning COVID-XX.

intact remains chain significant Our supply without disruption.

seeing weakness our impact related midway COVID-XX and quarter the Automotive, demand in through started we with However, business. Broadcast Consumer

and automotive China around weakness sales as the business the significantly. car more The declined pronounced globe in was in

the We quarter broadcast business the our was within also well our us keeping relatively executed and range. extremely has in team guidance saw overall Nonetheless, in modest impact in weakness China businesses. channel the

about was anticipated. I’ll talk year XXXX. our we Fiscal more much Now than fiscal XXXX challenging

coupled in market to with X% the Our of restrictions another in global general export weakness the challenges, business billion fiscal impacted is and semiconductor materially early year Despite calendar these the we Huawei had growing overall challenging revenues U.S. by year-on-year. record in environment, $X.X year trade XXXX. with the

a to the diversity back operations leadership. to million million returned over markets of spending buy FY from it our our flow serve the $XXX of testament dividends of to the we is In cash XX.X in billion resilience and and with shares. the significant product to This in attribute back business we XX, and strength shareholders which $X.X paid billion $X.X generated value also

Automotive the and Zynq-based represented constituted fourth revenues. Now approximately in Advanced win design and strong across of revenue revenues. year-over-year The continues our businesses impact XX% XX% highlights. markets. total Zynq to and target our despite Products total quarter momentum and weakness grew be category X% to the of of revenues Wireless, on the moving Wired

as beamforming market, the we by for Versal well as XG ACAP. compelling particularly on for the AI commitment engagement engine our proposition, Versal Samsung communications our and engagement to platform customers. with our is radio In a based deliver announced This recently optimized solutions includes second-generation differentiated strategic design that our architecture value their X-nanometer driven

carrier next telecoms using plan other collaborating to build radio networks multinational O-RAN a leading announced with wireless its and Xilinx generation Telefonica, companies.

XG their be XG will products and radios. in RFSoC used Our

announced the Xilinx’s Center, and SmartNIC combines SmartNIC platform, powerful a FPGA the UXX. It highly the In Alveo based optimized we comprehensive flexible engine. platform Data of first

In group storage SmartSSD to and deliver addition, Samsung’s computational we’re working FPGA storage intelligent with based using Nimbix accelerators.

Across markets, professional, capabilities new broadcast our core we markets. for range video products a advanced learning the machine and of announced our in audio,

this have had XX,XXX software downloads November. since announced past On over we Vitis the front, we Vitis

over of trained XXX% have an date, XX,XXX last year. to over We since developers increase

of a have We around software library growing application. X,XXX with us and working partners

year. since applications number Lastly, we production our of doubled previous the platform running on the

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

core due ISM recover revenues growth largely ramped expected prototyping saw at both as Our but multiple strong revenues A&D and as markets A&D We with performed growing and flat revenue as We up auto impacts. customers. were expected. double-digits. to are to had sequential auto emulation revenue COVID-XX expected programs

and As the were COVID-XX. weakness due but expected, AVB consumer pronounced weaker, was more to

particularly Group continues a We Center HPC, sequential strengths as by to video, both saw with acceleration, our opportunity due database of Data pipeline primarily to expected compute compute high SmartNIC and driven contributions strong from and notable growth a applications. digits, hyperscaler FPGA-based in a performance deployment customers. from The at fintech performed of double cloud grow DCG and mix

transport We expected performed due optical grew to decline and but The had the to Wired revenues Wired market to and access. shipments. than expected stronger than Wireless strength better expected. Wireless Group due radio better in networks some performed revenues

Lastly, largely as expected the complete. at talked ASIC the past, about we is which transition, length in

was impact fourth revenue up the quarter. for moving were fiscal to sequentially. guidance X% COVID-XX. our from line Wired X% sequentially. with million, Group XX% was Center Group sequentially. and QX revenue year-over-year increased Data the XX% the sequentially AIT and year-over-year. year-over-year, but XX% on revenue mid-quarter declined down down financials despite increased sequentially. X% Wireless XX% Now revenues XX% was was ABC year-over-year in up increased year-over-year and was $XXX down XX% and revenue Total XX% and revenues up range,

expenses margin operating due $XXX of non-GAAP expenses GAAP product XX% at was to and $XX expenses and the of GAAP and completed Gross both as in at that mix expected non-GAAP severance million to million than midpoint higher primarily margin were January. with expenses GAAP pay margin $XXX announced reduced XX%. of we charge gross operating restructuring gross pre-tax a we to guidance due related late below operating hiring included million spending. of discretionary

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

higher tax XX% tax rate GAAP tax rates rate approximately non-GAAP approximately and of larger related from higher The revenues XX%. primarily contribution were jurisdictions. to tax Our profitability was and was

a income share XX% a GAAP XX% was to sequential year-over-year from net $XXX million. year share count Non-GAAP last increase. $X.XX, EPS decreased million. a sequentially. million. per was Diluted income decrease and XX% X% a earnings diluted XXX.X increase net Diluted was $XXX was Non-GAAP and decline $X.XX

$X.XX increased quarter. we debt. billion long-term Gross days Accounts is compared million generated cash last was of billion $X.XX million receivables XX to $XXX XX operating Overall, at to days cash. in $XXX with

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

outlook the to XXXX. now Turning fiscal for first quarter

is $XXX first the million, quarter million X% approximately $XXX XX% midpoint year-over-year expect revenue be at down We sequentially. down between which and and to approximately

the incorporates of reflecting guidance also COVID-XX range environment. the impact with fluidity the assessment broader Our somewhat the from the current of

by decline. contributing which shortly, steeper dynamics, to and with also normal into than revenue entering ahead timing program confidence expectations. by The That average said, customer-related WWG. our historical revenue we’re addition, is of growth driven In be I’ll in quarter the go a backlog and partially first sequential the gives lower are expected sales, our offset in of degree DCG to AIT, ADC which quarter revenue decline us sequential in

fiscal in TME to customers record fiscal be very specific that’s sales a better in QX expected also at E&P coming customer modest program pace. A&D not sales a are meaningful to quarter purchase to QX. in but due repeating QX, decline off primarily more of of within AIT, down, a are continue as expected programs Now

market ISM COVID-XX is and the are related other meaningfully to weak the to down. due Broadcast Automotive to strength expected slightly All down, COVID-XX. headwinds being end and impacted are be expected by resulting is to from -- while be marketing expected medical despite markets the in medical Consumer be demand ABC markets. to flat

last sales expected are from quarter. decline to DCG

are improvement our fluctuations said businesses in we we but the other our As scale, over long DCG in some are continues revenue in of term. focused the I’ve is to annual of have double-digit growth laser to as on an DCG process me, past, lesser sustaining driving with the to greater -- business quarterly compared excuse business business. expected grow Wired on a basis modestly to extent, in and Wireless WWG extent

spending gross profile. be $XXX expected and expense is million million foreign is operating non-GAAP Fiscal Non-GAAP be XX%. due income million, other to interest and exchange between to adjusted to is Non-GAAP expected our hedging expected which reflects XX% primarily $XX $XXX margin QX approximately losses. to expense new be to expected between lower

to non-GAAP X% tax expected XX%. to between our Finally, is be rate

overall, while COVID-XX Turning core our to in believe we’re Industrial not markets, some FYXX related more test. Automotive, Consumer, year providing of of and be disruptions and will including impact Broadcast, semiconductor guidance, full portions evident the we

rest by the less COVID-XX, expect the are but to we our situation impacted relatively of We core monitor markets be very to closely. continuing

its modestly go slower hyperscalers. opportunities to customer to continue XG engagements see of build a at we deployment a into We strong pipeline also deployment WWG, expect in Despite to DCG pipeline ramp, continue as

strong preservation shareholder and with our as activity plan position. conservative more further our liquidity we return capital our focus to we programs, buyback improving be on Regarding

Our we Board remain the share increase $X.XX committed dividend quarterly approximately per has of over growing to and long our to approved X% a term. dividend

We being Xilinx’s good are drive stewards continue free to and on flow of cash generation. capital focused

for belief commitment running and pandemic. remain commitments proud employees grateful our the challenges, extremely Data keeping opportunities Center, to undiminished. growth Automotive customers our and So today’s and the our I’m business coping in our Despite with they’ve infrastructure our in and and the while conclusion, XG exhibited of dedication to markets COVID-XX in,

focused our the markets Zynq, adaptable Versal. for As strategy on across the value. and customers products with XXX% executing driving questions. We more deliver we’re Operator, empower core diverse call like powerful leader in our shareholder with and innovative gains and on resilient SAM expansion, share RFSoC long I’ll now term adaptable platforms platforms, to remain open

Matt Poirier

turn will for you we questions. Cristina to

Operator

the for [Operator Thank is now Toshiya this from Certainly. is Your At question everyone Instructions] like Goldman I Sachs. you. from remind Hari to open would questions. first time floor

line open. Your go Please is ahead.

Toshiya Hari

Victor, your question. COVID-XX afternoon. Hi question ask taking Thank demand to and guys, good you a the the for impact business. you’re that I seeing wanted on in

in You in gave your quarter could the in little you standpoint. remarks, hoping I bit a terms great what color prepared saw elaborate of revenue from you but was a

numbers that you be some If impact, helpful. provide can around the would

to can what you’re level for helpful. quick seeing follow-up. of to of of of current quarter, those, then customer to relates there will across you if base, kind that you the appreciate that speak And kind then your speak uncertainty, but as COVID-XX, the projects? And Are great. be similarly exactly got a be cancellations, would downsizing If Thank push-outs, you. I’ve can it

Victor Peng

Okay. Sure, Toshi.

some did midway it modest, through things intuitively like because So impact, think and but say, expect. started on would Automotive, you considered, fourth -- we relatively as happening all I see the end I shared the markets quarter, just somewhat pretty quarter I’d

In quarter, meaningful terms more current the impact. obviously, of seeing we’re

range the due the in kind more to if providing to as is the COVID-XX, of I of through COVID-XX, the I to exposed and we’re markets I some single had then on that that. that, both the went one why and say remarks, to but would broader said point I only prepared not midpoint is end it’s thing think are

with course customers’ are our lot with the our supply of with only with so key increasing markets. chain, customers our our partner, We employees not a with and very Avnet, communications end customers all of our but much

can we collect this everything environment to doing information. a of we’re uncertain on So lot

than again historically bookings areas expensive I what around are have have. people creating so not ordinarily where do stock, backlog like We we higher not that, things you not And there because cancellations. material. would double are is we tell few see A concerns buffer but work of we is and very overall, seeing

the So say turns in look, time said, of we factored engaged. Right? that say, So because that of over uncertainty. I that territory. the definitely of uncharted we and degradation high have some have in just communication would do degree confidence some have because level that and we of, in That general we’re

balance really there. we that think hope to I I are the trying So do helps.

Toshiya Hari

hoping then us of with quantify Versal, help win And the next great. I sure over quick you on follow-up, couple that’s Yes, your of to again sort impact a I’m potential was as XG Samsung the can the business to of be kind but win this magnitude, meaningful can business? so going both time, that’ll timing, if well that, your some terms it’s touch specific of be as for how in could as much. So helpful. take Thanks on years. you

Victor Peng

Yes.

of we’re opportunity this their think engagement and very think what’s still a of customers our is in picture the we’re win break and early three bigger for is specifics XG is Samsung see, a least meaningful generation And generation don’t again, customer the So second and meaningful it talk of generations. development is of here us that’s -- I and pretty we stages what -- being revenue can as for you is, at today again second in I very shipping about XG, generation engaged but all much there and out for us. the first

still very large going term that us. for absolutely is this opportunity So stages we be confident to long we’re and early the still in are a

tends it uncertainly. we’ve lumpy thing, with the and be, is past said think the now more circumstances, it normal too, even adds in somewhat to in other COVID the I situation, as

we’ll I have we the the is year. with probably But to more would of pre-COVID, situation. and but in So year said the robust still the this more think now, calendar in is next then COVID challenged, sort course, timing being of that calendar later see have

Toshiya Hari

Thank you.

Victor Peng

Welcome.

Operator

Moore from comes Your Stanley. next Joe question from Morgan

open. Please ahead. is line Your go

Joe Moore

you. thank Great,

Following up the are question, last the segment, on that revenues WWG down.

infrastructure this Wireless to point. XG below down probably levels think I at

but you are more than opportunity missing out still Huawei opportunity. the growing under total impressive a what But business become like curve the in you pretty about transition, the by area to year, see last pretty At the expected forecast? seemed you that Day, seeing Do numbers, challenged. you expect didn’t ASIC two, see you you growth it years? XG how next from Analyst So, that obviously Huawei three even larger the talked compelling significantly

Victor Peng

Yes, great question. Joe,

tight to business. visibility and certainly, on that timeframe, two despite pandemic, of we the knock we kind it XG than three not wood, with the in well, having in we some of challenges will that be do think out, meaningfully the larger still Huawei out should, I see believe years

of considering there that been the off, innings this but even the early to strong our dropped again, have after gives I a thing I still us. this idea XG, for we that that again has -- know being $X of billion was north of is an And, this able one were fact top customers, of in you losing think,

of for term uncertainty, a So going near be opportunity definitely very still get yes, of we and kind when I to headwinds some through it’s think these us. significant

And is lines, bigger with to suppliers. going just a of our offering deployment be XG our lines between the Versal RFSoC a is heck of way lot because a this both value kind we’re working key again, and much more and we’re the

we’re get I with think them working their really optimized very architectures out. to closely

So we very about that. still solid feel

thing this the situation, thing how timing in the is And that and, it’s demand out what delay and recovers issue course, opposed that how some I disruption be think argue of of difficult. I could about is in the other there that, as plays really could or only I demand would say that you the delay disruption COVID one is guess guessing -- to markets,

Joe Moore

to mean I that believe. I selling to clarify think there Can your you’re about trailing edge is product to is, there Huawei just quantify then you And and forecast? Great. still some Huawei much

Victor Peng

of amount count much we it have more but pretty it’s something mean, from on and pretty really don’t we revenue. time, because I we deminimis. just Huawei time modest some Joe, count not on Yes. really is it’s it and

Joe Moore

you. Okay. Thank

Operator

from Your Evercore. from CJ next comes Muse question

is go is Your line open. open. your ahead. Please line CJ

Victor Peng

Maybe mute. on

Operator

Ross Deutsche to Bank. Seymore from on Moving

Please line go Your ahead. is open.

Ross Seymore

me? hear you can guys Hi

Victor Peng

Yes Ross.

Ross Seymore

button work. Perfect. doesn’t mute Glad my

Victor, do or buffer what said double question much -- end you couple if you how of. up it seeing of popped pull-ins you judge of noticed highest turns in I kind and so on those wasn’t had I the ordering, the up have no to Just would the higher-end guys a why last do to turns guess, whether speak pull-in you of your years. the are no the behavior? popped really

Victor Peng

obviously, to cover look, you is, we there where on little say, I’d that’s they’re since some markets, it deployments. coming different aspect think But pretty and depends shut kind committed I can after bit Well, imagine, a many what XG But, down areas. back is of one China driving catch-up. their so

think maybe areas or not are times I some deliver to the and other -- of lead our people and affected. been although concerned, our people ship for ability have

that, cancellations doing But, we putting a it it’s any closely. that, not are change, pretty we of to so but understand and we which we a are had absolutely again range and we’re still also are in very factored midpoint. is have in -- things again where far. everyone that instances there modest could that bit people into that why be talking because could But of some broad And but our

Ross Seymore

Got question. it. longer-term And then one

the on all their customers the side development one growth, because change etc. COVID those have array activity you financed the customer can see you’ve engagements at software development, Data about wide that mentioned and can Center just in if during of going the well wondered on longer-term keep so You your your side, that etc, benefit I Group. that they’re seen are hand,

would down are of new planned some clamp that your from a launches the fearing were gets company those recession on otherwise benefit lot market, But the that that people nasty, launches. and new even would if

the activity perspective of well seeing the of sort you’re any level longer-term a update from from term? engagement an as near So kind as on

Victor Peng

and really something pretty I Yes, specifically question group to And talk are good that’s my sales team remarkable. a people it’s the about. and

-- meaningful customers I current customers, our production, there. the proof-of-concepts things current think, kind excuse we’ve to of seeing not some businesses and engaged to that any trial me, our and fall-off we’re in getting

there. if gaining running. now, and would a period try a we prolonged opportunity could driving current to for we But as we’ve suppliers of see, over you saying, good capturing keep to is impact we’re I Where a already well this time, as say, their businesses anything deal whole everybody focused long on new sure committed is know, as that. is if done are mean, share very material right I’m what see But and now. this of customers, expansion prolongs of don’t I just SAM course or pretty time, their and we no see people mainly right they’re not pipelines anything. doing very

Ross Seymore

Thank it. Got you.

Operator

from question Aaron Wells from Your next comes Rakers Fargo.

is go open. line Please ahead. Your

Aaron Rakers

I much production you’re obviously, follow-up. have proof-of-concepts deployment. seeing Center a bit you’re you’re Yes, business. a Data to the bit little of then seeing moving Can traction more you Alveo thanks talk category, about wanted that It the the for bit seeing SmartNIC kind have the taking question. been confident just talk products? on and into more a sounds UXX in Solarflare about little from visibility And the a I you what there how like

Victor Peng

again, the in think intensity I that, they of it see new in engagements Yes, getting. though of that and the is seeing a there’s expansion that do results what platform, they’re even quality to and of move about goes. front really very as that, to very still kind also we’re Alveo I the line we’re new a when people far interest of -- -- going fact and platform significant mean if the are as improvements again, seeing to your’e back only people strong revenue the encouraged gets they we’re us out our and

a genomic guess light I we can some power what think, say their for that’s the our our these pandemic, applications. and accelerate to bright and that simulations also of are accelerators things some have technology again in acceleration using the that and shining like of even of customers analysis on I’ll so do I it,

uncertainty going or to that the is up be into. impending the encouraging. looming So said, recession tends and seem there That all ramps timing here bursty we exact the going how that be that definitely of little with to be a again, bit is to a

Aaron Rakers

heels the we again Fair lineup expansion stand, revenue product, we then you’ve the coming obviously that product materializing some on are can us Thank you the just about where on enough. you And outlined? think still track announcement, of off previously and Samsung of should remind Versal contributions of or you. with the how

Victor Peng

again, late announced Yes, some -- we January, making of very in that and do we force the were and the when going expense in reduction and not and we anything reduction other to to that term measures, thoughtful sure we to this to sustained continue any posture did double-digit growth managed drive long that to we’ve objective the think even downturn. harm in strategic going to were our long and term. we’re I And that through take do

levers we’re but have pull, in worsen, that way. recovery can make the we when do We to that do advantage take sure should occur of we’re is this does to a that going very positioned fulsome other what

We so don’t are very good we a customers key trying very things, also do supplier are committed to manage but and to all basically, during time we to things program. longer-term very want going be this jeopardize our a responsibly, that to

as getting that’s And way, development only the few and made you traction and about ready software is, in the in factors Vitis heard made for there. just the for the ecosystem, talk tape-outs, we’re in improvement download we not we me being that the months by

to going to the keep key ecosystem definitely So we’re driving the the as speak, gas well in pedal, so programs. as on

Aaron Rakers

to the late expect toward this you the end to that would revenue year? specifically in just in contribute of And, year, X-nanometer,

Victor Peng

and of will the first part, production but mean position years. next we next for several then the I Yes, year through

doing points. market a know, different tape-outs price you broad lots will very product As family and segments at and and of many performance we’ll that it’s different power be address

that, So into will late fiscal ramp it to in of become would but to year. we yes, poised still early as we’re But, this it production the I are will start far next go X-nanometer, really as days year, say.

Aaron Rakers

you. Thank

Operator

Your BMO. from next Ambrish question is Srivastava from

open. is Your go Please ahead. line

Ambrish Srivastava

‘XX? be would just are and perspective you question confused, thank the a backlog heading representative ripping from us Yesterday on of up revenue. playbook XXXX, we into what not XXXX think very is a is are into -- little that kind Yes, was I opening he tell ripping, your versus Victor, why heading up ‘XX this where or had the much. we and on open he I had what is through we TI to

And longer lived having we’re your one? bit the then I term what had what through many a cycles, So product little question. into is on heading versus last perspective

Victor Peng

guess I one the backlog, upon -- they I OEMs. depending about us. Automotive, what significant said mean, is the very their again I mean, than Well, first down I they Okay. that point supplies is mean, the from different major more markets. that gave originally it way very forecast meaningfully very customer the

We of said, obviously, see I as in also AVB. strong amount pretty weakness

delayed by There’s sporting the year. Olympics no is a events,

unaffected. the pretty So those Defense, some of Aerospace on there. But things obviously really are clear it’s and and other so hand, we’re not seeing backlog

I areas how. little increase the in upside. a that, term, It’s are to hard know potential long would or the think certain there actually when

increase. But transcoding to that’s have accelerating doesn’t clearly anything which and entertainment a processing good processing. do really to homes, actually and of kinds applications. one as other from at well is of as, video And some work-from-home, those was there just is lot more do of we And that and applications with the together the that’s video AI with could go coupled AI video both, hot also before streaming pandemic, clearly going activity video so

to a but I to out, going more it’s think plays have also how is CapEx just be we’ll infrastructure, see lot traffic. that the communications -- again,

some of that very sure nature. make isn��t And probably things of sensitive I elements So why are that just to occurred. again, inventory think that imagine, builds we’re those as can you or

about and the revenue. be XX% future we I trying to as looking well I the looking on XXXX. from think multiple I inform company think prepared So downsides as mean, we’re looking we that have and I definitely other doesn’t are tell of include you at scenarios. that part at Right? does that XXXX, And well about question but XXXX, the think from in upsides XXXX, over we very more won’t how so different a

just RFSoC, product back right? Data let We didn’t ACAP big -- that AI exist let even weren’t exist, and market, to Zynq even as bring opportunities. didn’t Center perspective, that didn’t alone pursuing the alone Versal then, to of kind exist, any as we far

So that we that, anyway, the consider decision feel us not is about right our think that’s we while we blueprint. that, for

is at In unclear territory. this it. any the It’s blueprint, from there’s look we really uncharted existent way at fact, least

So of are you... last the question, part your

Ambrish Srivastava

you. pretty a actually Yes, thank no, I question. had helpful perspective, Victor, products That’s related

I the gentlemen Samsung come the guys I’m mean, presented and and from you them. and On the design forgot, I win, relationship Samsung back [indiscernible]. just to had the going between

Can is gen. cricket you from this in kind ASIC using the you my terms So for and losing us you back help ASSP just analogy I’m design the of old have on out an because cricket guys been wins days, foot, and understand solutions. of replacing next other

in and any Thank pretty like sounds That helpful. us competing against what something this So the frame be help just you. against first not had gen necessarily the would opportunity you competitor. meaningful versus and solutions,

Victor Peng

there multiple is lot recognize awful here. different players just for going an of I narratives And Okay. that on

production persistently. and is were, we larger pretty I I’ve being I expected an had think, that had we to to the that up consistent initial think, much -- on open So in candid part, we but which base I been hold just ended in shipped when we will something say, saying down not and

a radio, in that then further is density, integration family historically radio it significant and been the it’s compared and like We’ve even the compute it’s always right, solution. our right, to the RFSoC a ASSPs strengthen ASIC the and but strong we’ve powerful not opportunities fact increase of capabilities with I’ve that once we that feel it’ll have said further we -- such level true strengthened because we fixed platform, out, Versal comes always and said in true,

I’ve always out. Versal was felt not we’re bearing engagement, significantly Samsung our that, with improve to positioning. Versal is in production that competitive And And, yet. going remember I again, think, that the

end year prepared the you’re of the of train be go to calendar out. the into all will We to this production seeing products other going then and start coming at

in I’ve And very a nothing we’re competing said right. have is past in at the new, going been that XG I core I think very we we up unable it to we I obviously market. Huawei. for customers position. known work market now then So But that too same we’ve the definitely to back about we’ve it’s the But picked doing that significant is competitive Essentially decades. feel a are mean generation. ASICs mean and a with

Ambrish Srivastava

Thank Okay. you.

Operator

comes from Gerra Tristan Baird. from question next Your

Your ahead. Please line is open. go

Tristan Gerra

guidance? little at in Hi, inventory chain Could changes a meaningful distributors about and impacted good supply your levels you potential afternoon. any that disruptions any QX the bit talk

Victor Peng

of minor of there. terms we that are it’s way, inventory, Avnet, it’s in with did We and it course, you inventory By talk very specifically, slightly. so see really but about channel not fluctuations, issues pretty some but all. about so any There the our channel do we’re closely our much. concerned know Yes, I reduce own at don’t not asked

again, fiscal we guidance, -- QX In terms you I meant for supply QX disruption. think, us chain but think don’t have guidance, of I said QX, you

we don’t with any terms are so in fact, relations don’t really meaningful all had And which chain strategic excellent and to in And we deliver in with reassure still to lead our times that. supply them. the our itself, have we them see China We to customers for biggest ability our we, reached have impact. our of out suppliers, obviously TSMC so and have

supply not don’t chain So impacts. it’s we -- see related

Tristan Gerra

providing making And how I metrics know you’re that see and to a and Okay. with Any follow-up, progress. compatibility that in that so as then work us you obviously software a the you it’s the of platform Vitis the will trying progress that far you’re us to as how anything have type and Vitis is you’re year? allow TensorFlow the targeting -- currently many gauge provide such maybe or gauge with what that functions traction supporting for will next much could

Victor Peng

in if November. Yes, can, you only know don’t in I had we But can my think thing I we’ve functions, others and of announced but course. TensorFlow I downloads again, group this that, mean give I XX,XXX

customers, interest also early days. very strong. also we right? pretty think engagement but static I picture, have But know it it’s We not is the is we do training, -- have done a we’ve with So

open provide by for we to other we also continue which optimized that. way, we all some markets, neural source applications different reference add more libraries of libraries, of and are provide kind networks the We of

will are time and But flow excited So some about But course we that good to we’re of we seeing far. and take encouraged course. of momentum. for very so really it through very actual have encouraging activity very revenue, the traction

Tristan Gerra

Great. Thank you.

Operator

And your next question comes from from Evercore. Muse CJ

Please open. is line Your go ahead.

CJ Muse

hi. Yes,

should was to your and in for question, outside terms wireline you how seeing doing and over you’re that for thank I of can earlier. networking Sorry you’re business? comment guess overall, I and to question. taking back about about we to what legacy and wireless of what on head hoping XG business WWG both in think trends you Samsung Versal guess the I first And

Victor Peng

are do XG business there’ll think still and that even, still XG there starts fulsomely be even shipping ramping. some We ongoing as we more

on wireless there. see, side, the do we business So

that as Wired, it was to and be stronger. was we actually bit said, the On a weaker thought we little going

clearly going there And a well. of lot be then networks because obviously have of two also ultimately there’s kinds and core but on, streaming bandwidth things, as the all both work-from-home, of commercial to there, upgraded more think out traffic build as right, I think is just infrastructure do activity again, wireless I with

we that again, Wired both, the But will side. go engagements we So in I see that will as the production. be have of percentage some we and in there. will it of term but than quite be, near get still Again, over the there Wireless to a some growth, think strength development opportunity robust maybe full stronger through expect be we be won’t we uncertainty once see from as time do Wireless definitely

CJ Muse

full year on you. giving but can you through And with offer not any sense how curious Got what perfect guide thoughts control. helpful. on makes Very we you OpEx year? the Can understandably about COVID, think should

Victor Peng

had already of for reductions -- [$X.XX] some leaner we that in before mode. ended is up [$X.XX] we done somewhat in a Since we’re being it Yes.

we levers some plays pull be this deeper, there that think could out are that whatever. to as additional longer, I out, turns if it

C.J., like manage if company -- are sure if it does At what the you to we’re well going as through crisis. improve. way about positioned we’re is we that the is financial as and do more time, it gets try the stronger to I’d We a than think to severe bigger, absolutely make same

building after right. strategic the a to going customers more with we’re number back our relationship new We’re Right? hyperscalers, those customers weren’t like then. We of and the in new key even

there deliver they So things just when we products need the to them they even we that to make to we’re there in or make starting could we sure -- want absolutely even what to be them. sure are want either for downturn for inflect,

customers we’ll to think and want So again here, go make that you to to I but downturn. we’re our we’re ourselves this even come out as to well try going that don’t going definitely help wild sure stronger and from

CJ Muse

Great. Thank you.

Operator

comes John question from next from Credit Your Pitzer Suisse.

open. ahead. Your line go is Please

John Pitzer

Yes, good question. afternoon, me for Victor. the Thanks ask letting

we’re to the how some term? people that of from your Just of of along kind assessment customer engagement in sort penetration home? that in in customer just growth Is working work business place does are sort How where is team DCG that to lines much sheltered qualitative give it think longer try and adoption of -- of many you the you curious, very an story. drive story a is given of us rate environment can a doing

Victor Peng

of think probably forth. just are have to from are deep They’re at of absolutely that proceeding. more That’s home, able we kind again, those engagements switch proficient not really and collaboration ones that those so course, the I at of since And customers in kind markets, the Yes, the are technical of commercial the engagements. level. all, working to being

people with these Our place, for that have and we technology teams kinds the calls collaboration days. same are meetings whiteboard of, are the having engine some and in weekly able to

So that’s driving issue. And kind I not kind people doing to I cases, an to people this I to acceleration applications, that. said, even and putting more been that of look really kind place. some want as seeing in for vigorously definitely again of genomics is we’re in of think acceleration referred those

was doing is. everybody their and entertainment we so, We’re whatever it’s because about -- also more again streaming videos of just before, seeing think I more now is big even tik-tok streaming are creating course, who talked people own even it or

think continuing be greater. kind could do should opportunity argue that really that when interruption to any I of down, that’s So settle that again, drive and maybe things even it without you

John Pitzer

actually of a it’s of some talk your in investors. question like into should devices. administration a has often between and China. there of a ban popular been helpful, this Victor. that I mitigation curious, to of me potentially FPGAs think and And But one I then, That’s all the rhetoric and get handicap Victor, general-purpose that not but asked you kind because press difference argument I’m going slope apologize for feels just help about that factors lot by computing can might the this It sort slippery that how we us on end? sure risk I’m

Victor Peng

engaged global of both them chain help many issues. of the we trying trade on the about the and care the and supply and SIA individually know, to the understand the the probably are to certainly SIA both key semiconductors complexity in you as and government some think Board of also meaningful for drive constructive I’m I Well, dialog with they’re

a SIA damage to of been Xilinx as sort kinds and of very blanket These to like we’ve own that. things part do However, bludgeon our both of hammers going that clear, on are material is to U.S. the and whole thing the as the want the industry industry leader is semiconductors in whole. the last do damage as to and world you really a do

of issues. -- about clear we think approach so the do we’ve that’s And some resolve effective not these We and to don’t been that.

of I consequent license that FPGA that’s damage. any clearly things, revenue from unintended other and get Huawei them thing. be infrastructure. than forever of I to debate technology still the just of some one be about only put technology I more China other XG precluded everything I whether a period shipping examples to as I into mean say of think Those kind and what withheld think can blanket, specific it’d -- instrument finding kind or some So and the but won’t over build looks right? they’re way like going details, from specifically are needs doing a it’s thing of some hard to long sort time a were how

we to again don’t to had -- conversation. how I good were C.J. clear I hope be and we’ve about understand. constructive on some I probabilities know positions you put honest, So But this, think good

that. about sorry So,

John Pitzer

Appreciate the answer.

Operator

comes question SunTrust. William Your next Stein from from

is line Please Your go ahead. open.

William Stein

Victor, for this on I thanks to you ask made know on taking going ASIC could earlier comment I’m about question transition. the linger my this but question. Great, you answered already, if you a

have Maybe in largely designed you you the to can you it’s where I that that what of it’s I confirm in just both out and have XG content historically XG. transition, of complete. that do and Thank can a long heard XG one. places where relates that it a position retain as station get is played think said you have that you question, a didn’t correctly, and base in my you It’s you. complete you already only in you remind sort us

Victor Peng

baseband, some had in typically had I in we’ve but we’ve a other a and you make percentage our Sure. sound Look, smaller much smaller content. the had In strength will, where been I it’s that’s radio it traditionally content baseband no mean, with some had ASSP. what we’ve we’ve like to whether -- is position or persistence. sort companion don’t other want of more we’ve if a in together words, ASIC the terms FPGA, in had an of

everybody baseband, that we were people not content well it’s have not of to than look, markets. of as other in and in thought the we the in sooner the we started baseband in don’t that XG expect any both haven’t in that a was part shipped we beginning, Korea that South as but had saw recalls, said, So South deployment of level kind there. Korea, radio, the and bit that the in we And persist being as just what

over, was it’s I largely what when I that’s say to. so referring And

but will don’t and customers value have Now, replacement okay, to engage. what we We value do, the competitive we’ll want we closely deliver not our to which significantly that’s always no do just Look, to look, to increase aim that, I also customers say there sort the of is to we’re just FPGAs. it’s doing We a market. and why that, only be continue deliver whatsoever. that how in not pure products, we to our

collaborative their to We’re I’d them doing help a almost work together to goals. lot of deliver engineering say, close,

So I combination think it’s all of those. a of

compete complete So Samsung I more that everything as time. course, on think the hear the we’ll to you’ll and it’s far over -- And continue but horizon. vigorously is we as of example. see And win one

William Stein

Victor. Thanks

Operator

from Cowen. Your next Matt question Ramsay comes from

is open. line Your Please ahead. go

Matt Ramsay

Thank you very much. Good afternoon, guys.

Just related one quick a one and product follow-up.

segment The going Automotive challenged. ABC just to be is within obviously first is question since your

big sharp of If the you auto could a be how maybe the production got of then you’re given segment of the that’d within helpful. give and declines magnitude I’ve picture a And us a etc, Thanks. rough bit seeing, just just business follow-up. in that kind quarter Automotive little that June into is the the of drawdown

Victor Peng

So, you markets. kind out work is out okay, that’s similar certainly just on to of models. order order through. for if is that bit exact be right? of knows of Auto ABC. is That’s one a and going big to an details that years the XG, $XXX there as to the million, are say opportunity to the again, still part And very It’d Auto, Because that challenging. going of still probably beyond, far basket longer quite of we thing I give rolling auto somewhat annual ABC OEMs on But go new -- as here, be terms take a basis the three $XXX-ish question but instance, to would of I million don’t everybody on the magnitude so, in over okay. think

here, strong with of into kind be of only people’s lineups. but parts into standard systems up and We have now deliver advanced to right? systems equipment premium standards options a in spreading range, very driver keeps capability are safety safety assist to even for model have going not position in value they and mid those more even safety used and like the each So what

will being up monitoring sales have very to passenger is three-year on strong timeline take autonomous well, do a driving, new get and a like systems, have those that further -- systems camera, then in for even well have and out we is positions safety into probably view, content up, is surround going certainly two as the be and unit thing forth automobile feel as then you timeframe, going because challenging good standards and end to meet fully well. when a automated there strong out, so we are for front as designed is to and We they things opportunity there monitoring still definitely driver to it’d So while things when go there valet parking. we’ll more and

that, probably situation three I growth of said out XG Data that and of already big longer the more. even tends Auto, think This we’ve just take before drivers to Auto was that Center, pushes right. this time something anyways, a bit

Matt Ramsay

there, and Got it. Victor. Thanks for the granularity the context

follow-up, a you. the your bit and the side, engagements networking general just about been to compute ACAP Thank that business, those Center in in I’m and engagements? different and ask and purpose business specifically ACAP I the talk is wondering PLD As mixes compute storage Data addition and accelerators how logic and a been software on of sliver that compute but the going? there little the to is product how just within very Versal the has wanted just of type you the have a could specifically, obviously pieces, reception

Victor Peng

would build first also sort having opportunity. heavy I covering the long in the that of the is ecosystem, see terms the biggest applications. think compute Yes, said our and always term, right, most But area segment, applications, we lift different we’ve requires of say, that and set in the in in be ISVs just maybe that fulsome out the I’ll of general, that

don’t in So things. then progress things good -- like those the the you SmartNIC smart but areas, there, but making and course, the need we’re meantime in sorts meantime, of storage of

more And so with the the technical much customers. of a highly it’s direct engagement teams

others. -- SmartNIC like and good seen some why So you you’ve activities that’s us about hear recently talk

of a the and Vitis done is, released these has being new seeing done, one you especially traction kind boards the there’s our factor. see pretty I’d high we say we’re it’s but Alveo for that, and got early and that and just also to things, days, few back being have on that coming it’s now that’s some really side, instance, did architectures, But still there. compute as is good which Versal announce still the HBM our half work that’s of form we’ve boards like length UXX, of UltraScale work lot memory new --

So in dense factor. really, that density really compute form

SmartNIC, time first that for the that then out. And have UXX now we

that are applications of there compute traction seeing terms So within the I think in we side. good

I think times. mentioned we’ve video several

think is another one. analytics I database

a see that to and time now interesting takes in And is genomics high-performance and some medical starting happening now. done computing. a little then typically but We’re traction more good accelerated something there’s that’s we’ve fintech long bit too,

of lot a are there applications. So different

production. product first the to a take there, are it, think again makes will Versal of, I’d once is and that’s bit because a But we’re very a to powerful very very going it that’s barriers degree I element software the high, just stickier. because we high And there say, architecture in again just which longer very think

Matt Ramsay

much. very Thanks

Matt Poirier

have we questions. think time I operator a for And more couple

Operator

comes from Susquehanna. Certainly, your next question Rolland Christopher from

Your line is go open. ahead. Please

Christopher Rolland

and to quick the try think expecting a storage, to Great, relation is question, large you called how your segment thanks think question. of double-digit SmartSSDs. is about just in I do just if overall? computational ones. percentage talk you this versus growth growth I you Maybe the could do you what the first last that time I’ll DCG kind as the of first, for two guess rate rate out are

Victor Peng

today, think, but we I each those. of don’t say of some very there. for a revenue, that the break wouldn’t do serviceable think, that I engagements into Yes, good fine it’s I pretty granularity, us. it’s, market over think time, Again, substantial got portion a we’ve we large

about think $XXX kind kind years, be you could of this If three million opportunity. go of level we of maybe out

necessarily the I relatively it’s of want I the in our revenue of think again early of to sizable. breakdown we’re that. don’t the that is say opportunity but So today stages, still reflective

lot the use Data really in knows so data to don’t disruption around. lot Data storage everybody and there’s closer bandwidth think computes a you a I movement and toward and Center is, do do of burn entire power where to lot of of the a you data Center -- the across there’s where that compute the trying the moving

it’s I today, a modest. it’s opportunity, So I think good but say, would relatively

Christopher Rolland

changes. But of we does should or like at X-nanometer while, other? and decisions speed the push to will my guess you inform And didn’t X where Great. guys and you you the all leadership, in understand it seem Altera days, why next your I the to a who the taken I’ve getting pay? that believe been emphasized one is following Why then, well approach in I node versus Xilinx that, simultaneously? X your a Victor, architecture us you’ve over used be And question it different should and node first you’ve you also for then which made as that under is really it’s to old

Victor Peng

you understand what really, to X, I in didn’t we Is push mean, why to? that quickly? me you’re sure trying push let So you we just I didn’t just just why think out what X? say, when really referring make get

Christopher Rolland

used race be out almost Exactly. old so next you X has the why node. move more a a been In days, quickly? to it the to while, didn’t for

Victor Peng

value I basically was right? pure the producing being implement capacity think a node old why it And main former deliver days how your race because way were gates, the both, Yes. FPGAs. to was and to the of you us next again, a functions. Altera more reason customer increasing your in the FPGA, the it pure Because that’s by they And is just

first node we So density value to gates you’re of customer if delivering a you and more next higher the have the get quicker. then usable

started why a of adding oversimplification, could best other bit have obviously but doing by pure and just you’re like, sturdiest when other doing I to it started like it’s things. gate. adding We a next multi-core deliver really really gate things the industry SoC, Now, things, programmable back Zynq, right? race increasing programmable right. with devices, was some then we not of little an our just count, mainly in quality like the a Once value we the that we certain was mean

very CoWoS calls since what chip generation. as that, XX-nanometer and forms I point SSIT doing also widths advance TSMC out the or hot technology now on their other is we’ve will integration. been everybody know, of you And

we more you all that, And want to SSIT already there Right? So because we’ve already I’ll our back load, FPGAs, were also since. portfolio do than we was massively product point ever of XX-nanometers. portion are out our in mode able well, did if large had

another combination case very integrating together of form leader So of architectural integration advanced integration that forms digital I RFSoC, technology, of and in think a the with innovation, on. analog beyond monolithic we’ve it’s other been just that’s of a yet

sense? more So, to think the each getting not node. integrate that solely I guess, way value generation. maybe Does the for it But doing really to make we’ve about it we’re next is, to continued

Christopher Rolland

couldn’t we you might anything wondering I’m both and change X-nanometers. does. do It whether once why to as just move at

Victor Peng

that’s the that next UltraScale+ order -- down to an successful I in is is on detail guess higher of bit. if that the go level extremely keep Well, you mind product.

So maximum and also released and with MPSoC, pure large and leader and RFSoC the increase that to continued end of away we’ve capacity really far we there then is just just was just in the terms have -- FPGAs high we capacity. VUXXP, just the by right, because have also recently on the

is a our the also complex of to it then node of So [nanometer] and the part a -- great such doesn’t Versal didn’t products. of us just require success racing ACAP this the is next is part powerful while but our It sort customers for it, take and to of it of believe. quite to incumbency, to adopt. level develop But they that it’s I very fully a takes architecture once a while going will adopt strong be

Matt Poirier

think we operator time And for have question. one I more

Operator

Thank you.

question Your Rakesh next comes Mizuho. Vijay from from

is Your open. go ahead. Please line

Vijay Rakesh

Yes, hi, guys.

at look ASIC fiscal you mostly you complete. transition when mentioned wondering, Just your ‘XX,

the have follow-on. one don’t And headwind. now I that growth see have WWG, in you how you wondering ASIC Just that the

Victor Peng

is and of not sort to because guidance the to able a overall going still Well, uncertainty very back the feel of for full-year we we’re anymore. guess XG I all being that to despite to I again, be providing Huawei but in go environment, comment want even my us not big opportunity

us the we have still although So with in get Versal. about that volume very deployments growth in feel different in Versal great us, to Right? run. different deployment of win of Most front the and the good That’s had with getting first we’re design OEMs and about we’re is continued in us. over traction. very volume geographies is front long in we just all front time of of talking then RFSoC has

wouldn’t to feel we now see the in try So I right opportunities about FYXX. WWG, very good predict we but

Vijay Rakesh

actually, Got you already it. don’t on answered I for, mentioned believe you if I one beamforming and know with on the computing Samsung. two XG one at this, but Versal Samsung, wins radar And, for side

the the wondering Thanks. at look both you ramps sized there. as you Just opportunities if

Victor Peng

the we Samsung think XG about talked Versal engagement. I mostly

storage multiple served engagements in nothing have engagement. XX-nanometers as Versal. as with well SmartSSD to about other their our talking customers that we Center with about yes, But XX-nanometer got with key our moment. in Samsung the referenced together all customers, that roadmap, to specific Samsung we’ve traction Data clearly, but good really Versal say complete The with based good in But, respect at UltraScale+ we’re the and

Vijay Rakesh

Great. Thanks.

Victor Peng

welcome. are You

Matt Poirier

we’ll think up X wrap us time. I I everyone joining it this pm there. Eastern want of for pm X to Pacific have Christina, call thank We’ll a at playback So beginning today.

of copy our a investor our For website. visit please earnings relations release

much our thank Our will Thursday for This and of call XX, market next after XXXX fiscal for first July very date you participation. your year quarter earnings release be close. completes the the

Matt Poirier

everyone. Thanks

Operator

this and Ladies conference gentlemen concludes today’s call.

You may now disconnect.

Xilinx (XLNX) 22 Apr 202020 Q4 Earnings call transcript