Xilinx Inc. (NASDAQ:XLNX) Q4 2019 Earnings Conference Call - Final Transcript

Apr 24, 2019 • 05:00 pm ET


Xilinx Inc. (NASDAQ:XLNX) Q4 2019 Earnings Conference Call - Final Transcript


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Victor Peng

and fiscal 2019. So now focus my comments on key accomplishments during the year. We made excellent progress on our transformation to a platform company. First and second generation, zinc product revenue increased approximately 60% with strength and many applications in communications, automotive, particularly ADAS and industrial end markets. We taped out our 7-nanometer Versal ACAP on schedule, which is an industry first. Versal will deliver 10x compute performance and 10x bandwidth and deliver power efficiency for many applications across all of our end markets. We also launched Alveo, a family of powerful, adaptable PCIe accelerator cards that increase the performance of a broad range of applications for both cloud and on-premise deployment. And we also hosted three very successful developers conferences globally that had a record attendance as part of our drive to increase application development and expand our ecosystem.

Now, let me share some highlights around our three key growth drivers: communications, data center and automotive. Starting with communications. 5G deployments began earlier than our expectations at the start of FY '19. We were exceptionally well positioned at this early stage of what's a historic 5G cycle, which we believe will be multiple times larger than 4G. Deployment started in South Korea and now we see deployments gearing up in multiple geographies. We're shipping in volume in radio and baseband applications. Our opportunity in 5G rate is particularly strong because of the complexity of the new standard drives the need for significantly more radios than in 4G. We expect to get more content given the higher value we add for radios with products like our RFSoC.

In addition, we have a complete product road map with our recently announced expansion of our RFSoC portfolio covering the full sub 6 gigahertz 5G spectrum. And we've seen more than our typical share of baseband revenues in this very early phase of 5G deployment. We expect to retain some of the current 5G baseband sockets, while some will be replaced by a ASICs over time. And this is consistent with what we've seen in the past deployments, including 4G and 4.5G. Now when our 7-nanometer Versal ramps the production, we have an opportunity to expand beyond our historical baseband revenue levels in later deployments of 5G.

Now moving on the data center, we continue to develop and expand our ecosystem and adaptable platforms in a variety of high-volume applications. We are strengthening our data center first strategy with today's announcement of our intention to acquire Solarflare, a provider of high-performance, low latency networking solutions for multiple applications, including financial. Combining our industry-leading FPGAs, MPSoC and soon ACAP solutions with Solarflare's high-speed NIC technology and onload application acceleration software will create a powerful converged SmartNIC platform. Solarflare's software and networking expertise is an excellent complement to our silicon, IP and development tools leadership.

We also continue to fortify Xilinx platform and Alveo partners ecosystem through our corporate ventures initiatives. We nearly doubled the number of companies in our Versal portfolio year-over-year to