Xilinx Inc. (NASDAQ:XLNX) Q1 2020 Earnings Conference Call - Final Transcript
Jul 24, 2019 • 05:00 pm ET
[Operator Instructions] Your first question comes from Vivek Arya with Bank of America.
Thanks for taking my question. Victor, since Huawei is of so much importance to investors, I was really hoping if you could give us some rough sense of how large it was as a customer in your last fiscal year. I realize that it was not 10%. So you have not disclose that. But any rough sense would be really helpful. And then how much of a headwind was it in June and how you're thinking about it in the September quarter, just because it's such a large variable in thinking about the business in the near term? Thank you.
Yeah, well, look again Huawei is a very important customer to us. And, but as you said, we had no 10% customer in FY '19 nor in first quarter of FY '20. Huawei, is important. That said, we are able to hit the midpoint to our guidance, because we were able to ship for half the quarter but as I said, the resilience of the business and all the other markets being very strong, particularly AIT, also seeing some more strength in some of the other wireless, as well as the wired growth as we expected and just plain a lot of hard work, we managed to offset that.
I think you should take away the fact that at our Analyst Day we had said that Q2 would be flattish to Q1 and now we're guiding slightly down from that shows that clearly there is impact despite the fact that we're able to hit the mid range. And just in terms of the general size, I mean clearly as Lorenzo said this range that we gave of Q2 shows that our current expectations well, less than half than what we thought of begin with. So the way you should think about this is kind of the exposure to volatility around this is greatly reduced now because of how we're thinking about the business.
Your next question comes from the line of Joe Moore with Morgan Stanley.
Great. Thank you. I wonder if, obviously there's variability in the second half of the year. That's pretty clear. How are you thinking about OpEx in that context? Could you see OpEx come down if the revenue expectations come down or just what's the flexibility around that?
Joe, I mean, look, I think if you, if you take a step back and say, other than this trade situation, our main thesis of everything we said during Analyst Day remains intact. Right, that's what Lorenzo closed with the fact that we have really still strong growth drivers in 5G. Yes, Huawei is an impact, but the rest of 5G is still there. Data center, automotive in the longer term and built on top of all the multiple diverse slots [Phonetics] that we have and so forth.
So, I think when we think about it, we said -- and we are investing in order