Xilinx Inc. (NASDAQ:XLNX) Q2 2019 Earnings Conference Call - Final Transcript

Jul 25, 2018 • 05:00 pm ET


Xilinx Inc. (NASDAQ:XLNX) Q2 2019 Earnings Conference Call - Final Transcript


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Good afternoon. My name is Katherine, and I'll be your conference operator. I would like to welcome everyone to the Xilinx First Quarter Fiscal Year 2019 Earnings Release Conference Call. (Operator Instructions) I would now like to turn the call over to Matt Poirier. Thank you. Mr. Poirier, you may begin your conference.

Matt Poirier

Thank you, Katherine, and good afternoon, everyone. With me are Victor Peng, CEO, and Lorenzo Flores, CFO. We'll provide a financial and business review of the June quarter, the business outlook for the September quarter and the revised outlook for fiscal year 2019. We'll then open the call for questions.

Forward-Looking Cautionary Statements)

Beginning in Q2, in addition to GAAP financial measures, we expect to disclose certain supplemental non-GAAP financial measures used by management to evaluate the company's financial results. These measures are disclosed to facilitate period-to-period comparability for purposes of evaluating continuing business operations by excluding the effects of non-recurring and unusual items such as amortization of intangibles and certain one-time items related to acquisitions. As inorganic growth becomes more significant to our overall strategy, we believe that sharing these non-GAAP measures will be helpful for analysts and investors in analyzing the Company's ongoing core business. A reconciliation of non-GAAP financial information to the closest GAAP measure is included in our earnings release and also posted on our IR website.

This conference call is open to all and is being webcast live. It can be accessed from our Xilinx Investor Relations website. Let me now turn the call over to Victor.

Victor Peng

Thank you, Matt, and good afternoon, everyone. I'm delighted that our efforts to drive growth in our core markets have delivered record revenue and EPS for the quarter.

The June quarter revenues of $684 million were up 14% year-over-year, with growth across the majority of our business as six of our nine end markets increased in the quarter. Our strategy to drive accelerated top line growth is delivering results. We're confident we can build on the momentum we established in Q1 through the rest of the fiscal year. Consequently, we are raising our guidance for the full year based on the strength of our business across multiple end markets, including the data center and TME markets and the communications market. Lorenzo will discuss both the fiscal second quarter and the full year guidance in his remarks.

We made significantly progress on our data center strategy, getting key design wins from hyperscalers and acceleration in use cases beyond FPGA as a Service or FaaS. On the FaaS front, Huawei announced general access to their FaaS offering. We also continue the extension of our software ecosystem with an additional 500 AWS F1 developers trained in the quarter, bringing the cumulative number of trained developers to over 900.

On the inorganic front, we acquired DeePhi Tech, which significantly strengthens our capability in artificial intelligence from the cloud to the edge. DeePhi is a Beijing-based company with industry-leading capabilities in AI, specializing in compression, pruning and system-level optimizations of Deep