Xilinx Inc. (NASDAQ:XLNX) Q4 2019 Earnings Conference Call - Preliminary Transcript
Apr 24, 2019 • 05:00 pm ET
Te floor is now oen for questions.
Our first question is from te line of Jon itzer from Credit Suisse.
Tanks for ([Indecipherable]). Victor, in your reared comments you talked about normal com cycle, FGAs get a lot of content beginning and ten tere's some dislacement as te build-out continues. I'm curious, can you el kind of quantify you be te magnitude or te timing of wen you migt exect some of te baseband business tat you're winning today moving to Asia, fair?
Yes, tanks. First, I'm glad you modify tat wit baseband because radio is going be stronger tan ever and, as I said tey going be more radio, we're going to cature more content tere. So witin te baseband side, again we istorically ave already even after ASIC dislacement retain some revenue streams from te baseband, but it's very early start at te second alf of last year and coming into te beginning art of tis year, we still see continued iger tan tyical revenues.
I'd say kind of difficult to sort of call te exact transition because obviously tat deends on really external factors of wic we don't ave comlete visibility. I tink te takeaway is tat we build into te fact tat we see were we don't ave solid ersistence tat we do exect some of tat roll off, and so it's kind of built into ow we tink about tings. And again, you'll ear more details about FY '20 at Investor Day. But it's not on substantial owever, again, just tink about it tat we build tat into our lans.
Okay, so it's not like we're we exect to ave longer ersistence ten wat would be rudent.
And our next question is from line of Ambris Srivastava from BMO.
I, tank you very muc. I ad a question on gross margin, I'm going back to te last eak in wireless and around tat time, comany gross margin was between 68 and 69.5[/], if my istorical numbers are rigt. So te question is, is tere someting secific to 5G tat is more detrimental and I know your revenues are iger in Wireless versus wat tey were before? And ten my quick follow-u. It's a more, a blocking and tackling learn. So, wen you said, second alf gross margin comes back to te more normal level, ow do you define normal and does tat imly ten widely slows down considerably? Tank you.
So, let me like take te first question. So, look first of all, as you said, it's really a very different lace in terms of te magnitude and size. And by te way, I want to also clarify, we're far from eaking, rigt, because tis is just a very early stage of 5G. 5G is going to continue on for quite some time, because 5G is very ambitious, I mean we see 5G being factors larger tan 4G over its entirety. And te oter ting is tat we're talking about very diverse tecnologies rigt,