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

Apr 24, 2019 • 05:00 pm ET

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

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Presentation
Executive
Unidentified Speaker

now be reorted searately and will include ig erformance comuting, altoug tat element as been istorically very modest. Te remaining end markets wic we will often call core vertical markets, we'll ave a grouing of A&D Industrial and TME called IT and te grouing of automotive, broadcast and consumer called ABC.

Now onto te guidance. Revenue growt continues in Q1 wit te exected revenue between $835 million and $865 million. Te key driver of growt will be WWG wit bot -- wit growt in bot wired and wireless. Data center is exected to resume double-digit ercent growt. We exect AIT will be down meaningfully wit declines in A&D and TME, more tan offsetting growt industrial.

All end markets and ABC are exected to grow. Tis end market mix in Q1 leads us to forecast gross margin at aroximately 66%. In Q1, GAA oerating exense is exected to be $315 million and non-GAA oerating exense is exected to be $308 million. Wraing u our guidance, GAA oter income is exected to be aroximately $15 million in Q1 and our tax rate is exected to be between 7% and 9%.

Wile we rovide more details on FY '20 and our Analyst and Investor Day, we can rovide you now a framework for te remainder of FY '20. In te first alf, we exect Q2 revenue and gross margin to be similar Q1 wit a modest increase in oerating exense. In te second alf, we exect to return to growt wit strengt in data center, aerosace and defense. TME and auto wile oter businesses grow modestly or remain steady te rebalancing of our end market mix is exected to imrove our gross margin to more tyical levels.

Our oerating exense will also grow in te second alf as we realize te imact of our annual comensation increases across our emloyee base and increased tae out exenses. After excetional erformance in FY '19 we are eaded into FY '20 wit a great deal of momentum. We ave done, far more tan deliver one year wit great revenue growt and rofitability. We ave been successful in driving our strategy, exanding our leadersi and our market reac and establising our strengt across 5G, data center and automotive.

As Victor noted, our accomlisments also include te acquisition of []D5 [/] and te recent announcement to acquire solar flare, bot bringing talented teams and tecnologies aligned wit our strategy. Wit tese successes FY '20 is off to a solid start and we are looking forward to growing te Comany at double-digit rates. Wit tat let me turn te call over to questions.