Xilinx Inc. (NASDAQ:XLNX) Q3 2020 Earnings Conference Call - Final Transcript
Jan 28, 2020 • 05:00 pm ET
The floor is now open for questions. [Operator Instructions] And your first question comes from the line of Joe Moore from Morgan Stanley. Your line is open.
Great. Thank you. I wonder before you had said that the impact of the baseband transition would be largely done by the March quarter, is that still the case? And what are you kind of thinking about the progression of wireless beyond that, particularly as you know, assuming that we don't get Huawei back into the mix. Can you grow from there? Is it going to take a while? Just what do you think is the progression there?
Yeah. Joe, I mean, what we said is the baseband impact did occur in the last quarter as expected. So that -- you're correct if you're implying that's not new news. You're right. That's not new news. Really, the additional pressure we're feeling in the current quarter is from slow down in deployments across multiple geographies and then both weakness both on the wireless side as well in the wired side, that level of weakness we did not anticipate last quarter when we kind of gave the overall guide for the second half.
In terms of how we see things going forward, we're not giving guidance for FY '21, but I guess broader picture, what I would say is, clearly in the near term, we have some meaningful headwinds here. Huawei remains on the Entity List and that I really think that from that perspective, we don't think about that is even if that were to change in the Entity List that account revenue would be at levels that it used to be. I think it's just the reality of it and that's how we think about it now. However, we're still relatively speaking in the first phase of the point for 5G and you've heard me and I'm sure other people talk about, when we talk to all our customers, they feel like three waves of technology roll-out. And so, it's certainly been more challenge as first wave. When we think about the longer term, we still think this is a good growth opportunity for Xilinx, particularly because we've been innovating with things like RFSoC and Versal ACAP. And we've got really good engagements as I had alluded in my prepared comments, already with some customers for the second-generation and that's actually using our 7 nanometer Versal ACAP. So that's how we think about the big picture.
Great. And just to clarify my question in terms of the baseband transition. Is that an ongoing headwind beyond the March quarter or the impact of that kind of mostly done in the current quarter?
I guess, the way we think about it, it's mostly done, it's factored in exactly. If not, it's not like a one-time event, it was -- we expect it would happen -- it did happen in that quarter and we keep it out.
Okay. Thank you.
Your next question comes from the line