Xilinx Inc. (NASDAQ:XLNX) Q1 2020 Earnings Conference Call - Final Transcript

Jul 24, 2019 • 05:00 pm ET


Xilinx Inc. (NASDAQ:XLNX) Q1 2020 Earnings Conference Call - Final Transcript


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Good afternoon. My name is Catherine, and I'll be your conference operator. I would like to welcome everyone to the Xilinx Q1 FY '20 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]

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, Catherine, and good afternoon, everyone. With me are Victor Peng, CEO; and Lorenzo Flores, CFO. We will provide a financial and business review of the June quarter and a business outlook for the September quarter.

Let me remind everyone that during our conference call today, we may make projections or other forward-looking statements regarding future events or the future financial performance of the company. We wish to caution you that such statements are predictions based on information that is currently available and that actual results may differ materially. We refer you to the documents that the company files with the SEC, including our 10-Ks, 10-Qs and 8-Ks. These documents contain and identify important risk factors that could cause the actual results to differ materially from those contained in our projections or forward-looking statements.

In addition to GAAP financial measures, we will be disclosing certain supplemental non-GAAP financial measures used by management to evaluate the company's financial results. We provide these measures 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.

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 has been posted on our Investor Relations website.

Please note that we have also posted a document to our IR website that contains flat quarter historical data for the new end-market classification we adopted in May 2019. 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

Thanks, Matt, and good afternoon, everyone. I'm pleased to share our results today as they exemplify the durability and resilience of our business. We saw solid growth in our WWG, AIT and ABC end markets, which enabled us to achieve the midpoint of our Q1 fiscal 2020 revenue guidance despite unexpected challenges.

I'm proud of the tremendous effort by our employees to achieve our target despite the Huawei shipping restrictions, which occurred midway through the quarter, as well as the general uncertainty in the current global trade environment.

Now, let me share some highlights around our business units in core vertical markets. I'll start with WWG. Despite our complete suspension of shipments to Huawei in the middle of the quarter, we saw continued strong demand at