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

Jul 24, 2019 • 05:00 pm ET

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

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Presentation
Executive
Lorenzo Flores

organic and inorganic growth to our employee base. Non-GAAP operating expense will be approximately $322 million. While we expect Solarflare to close this quarter, precise timing of the close is uncertain. Therefore, we have not included revenue or expense estimates in our outlook for Q2.

Depending on the timing of the close, additional non-GAAP OpEx could be between $10 million to $15 million for the quarter as we onboard Solarflare employees. We also expect to have incremental revenue of mid to high single-digit millions in the quarter. This revenue would be a slightly higher than corporate gross margins.

GAAP and non-GAAP other income is expected to be approximately $11 million. Our tax rate is expected to be approximately 0% for Q2. This low rate is a one quarter phenomenon due to the tax accounting rules for share-based compensation.We expect the quarterly tax rate to normalize in the second half of the year to a range between 7% and 10%. We expect share count to decrease slightly in Q2, which is the net result of our share repurchases offsetting our annual stock grants.

As I close, Victor and I realize there will be a great interest in our outlook beyond Q2. At this point in time, we are monitoring the China trade situation and the overall economic environment. Given the uncertainty of -- regarding these important factors, we are not reiterating or updating our full-year guidance today. We expect to provide an update on our fiscal '20 outlook at our October earnings call.

Overall, we believe our long-term growth drivers remain very much intact. Although our FY '20 revenue expectations have been somewhat moderated by trade-related concerns, we continue to believe that the second half of our fiscal year will be better than our first half.

Let me now turn the call back to the operator for Q&A.