Xilinx Inc. (NASDAQ:XLNX) Q3 2020 Earnings Conference Call - Final Transcript

Jan 28, 2020 • 05:00 pm ET

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Xilinx Inc. (NASDAQ:XLNX) Q3 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good afternoon. My name is Rob, and I'll be your conference operator. I would like to welcome everyone to the Xilinx's Third Quarter Fiscal Year 2020 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.

Executive
Matt Poirier

Thank you, and good afternoon. With me are Victor Peng, our CEO; and Sumeet Gagneja, our Corporate Vice President and Chief Accounting Officer. As a search for our new Chief Financial Officer remains ongoing, for this call, Victor will provide a financial and business review of the December quarter and the business outlook for the March quarter of fiscal year 2020. Sumeet and I will participate in the Q&A portion of the call, as needed.

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 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.

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.

Executive
Victor Peng

Thanks, Matt, and good afternoon, everyone. Let me jump right into our results for the third quarter and provide an update on our expectations for the fourth quarter of fiscal 2020.

Overall, the quarter played out largely as we anticipated. Total revenues were $723.5 million, near the midpoint of our expected revenue range. We made a concerted effort to reduce operating expenses and achieved better than expected operating margin and GAAP earnings per share of $0.64, non-GAAP operating earnings per share of $0.68.

Now I'll turn to highlights for the third quarter. The Advanced Products category constituted approximately 70% of total revenues in the third quarter, a decrease of 4% year-over-year. Zynq-based revenue grew 26% year-over-year,