Xilinx Reports Fiscal Third Quarter 2020 Results

Xilinx also announced cost-saving measures designed to drive structural operating efficiencies across the company. Xilinx expects to reduce its global workforce by approximately 7% through a targeted reduction in force and meaningfully slower hiring to replace attrition. In addition to the targeted reduction in force, Xilinx is taking other measures to reduce operating expenses, including further reducing discretionary spend and targeting additional operating efficiencies across the business. As a result of these measures, Xilinx expects to generate non-GAAP cost and operating expense savings of approximately $17M to $20M in the fourth quarter. Additionally, Xilinx expects to incur a GAAP pre-tax charge of approximately $25M to $30M in the fourth quarter of fiscal 2020 primarily related to severance pay expenses.

"As expected, our fiscal third quarter was a challenging quarter and our revenue came in near the midpoint of our guidance. Given the revenue headwinds we experienced during the quarter, we took actions to reduce our operating expenses which delivered earnings greater than our expectations.

"Fiscal fourth quarter revenue is expected to grow on a sequential basis as a result of strength in our core vertical markets and a moderate resumption of growth in our data center business. However, we are seeing greater than expected weakness in our wired and wireless business due to a slowdown in both 5G and wired infrastructure deployments, in addition to ongoing global trade headwinds.

"We expect some of these headwinds in our wired and wireless business to be persistent, resulting in revenue growth lower than our prior expectations. We are, therefore, taking several actions to further reduce our operating expenses this quarter.

"These are difficult actions, but we believe the decisive steps we are taking to reset our operating expenses will allow us to drive our growth strategy and technology roadmap while enabling a more appropriate level of operating profitability. We remain extremely focused on our mission and long-term growth opportunities as the leader in adaptable platforms from the cloud to edge to endpoints," said Victor Peng, president and chief executive officer.

Net Revenues by Geography:
	Percentages			Growth Rates
	Q3	Q2	Q3
	FY 2020	FY 2020	FY 2019	Q-T-Q	Y-T-Y
North America	28%	28%	28%	-13%	-10%
Asia Pacific	48%	51%	46%	-19%	-6%
Europe	16%	15%	18%	-4%	-19%
Japan	8%	6%	8%	8%	-4%


Net Revenues by End Market:
	Percentages			Growth Rates
	Q3	Q2	Q3
	FY 2020	FY 2020	FY 2019	Q-T-Q	Y-T-Y
A&D, Industrial and TME	40%	36%	40%	-5%	-10%
Automotive, Broadcast and Consumer	19%	16%	15%	2%	10%
Wired and Wireless Group	31%	38%	35%	-29%	-18%
Data Center Group	9%	10%	8%	-16%	8%
Channel	1%	0%	2%	NM	NM

Net Revenues by Product:
	Percentages			Growth Rates
	Q3	Q2	Q3
	FY 2020	FY 2020	FY 2019	Q-T-Q	Y-T-Y
Advanced Products	70%	74%	66%	-18%	-4%
Core Products	30%	26%	34%	1%	-21%

Advanced Products: Alveo, UltraScale+, UltraScale and 7-series products.

Core Products: Virtex-6, Spartan-6, Virtex‐5, CoolRunner‐II, Virtex-4, Virtex-II, Spartan-3, Spartan-2, XC9500 products, configuration solutions, software & support/services.

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