Xilinx Inc. F3Q09 (Qtr End 12/31/08) Earnings Call Transcript

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2009-01-14 17:12:09.0

Tags: Xilinx Inc., Call Transcript, Earnings, Wireless, Percentage Basis, Wi-Fi, Wireless And Mobility, Seeking Alpha

Question-and-Answer Session

Operator

(Operator Instructions). Your first question will come from the line of Tim Luke.

Tim Luke - Lehman Brothers

Thank you so much. Jon, I was wondering if you could help us with some sense of what set of terms level may be required in looking at your guidance going forward, and separately, you mentioned in your comments that you expect the revenue in wireless and particularly from China to be sequentially lower this quarter and then perhaps improve in the June period and similarly in the military area, you suggested that having been weaker in March but in this full year you would expect some growth in military. Do those elements help you suggest that you would expect a flattish to slightly higher June or how should we think about that? Thank you very much.

Moshe Gavrielov

Let me talk about the turns business, Tim. I got number a little bit Tim as well. So, yes, from a percentage basis, it's a little misleading because we do go into the quarter with a much weaker backlog than we normally would see even though we would might have entering January, normally a slightly weaker backlog, but this is substantially weaker. So, the turns number from a percentage basis is actually higher than we've been experiencing in the last few quarters and I’d say more in the low 60's from a percentage basis, but that really doesn't tell the whole story. It's really the dollar value of the turns amount that we're expecting and we set our number at the mid point of our range at a level of turns that turns on a weekly basis that are less than $20 million a week, and we haven't experienced a quarterly run rate that low in the last four years.

So again, on a dollar basis, I think we've adjusted our turns down into a reasonable number that helps us land in that range, albeit a wide range, but on a percentage basis the way the numbers work out the percentages is going to make it look goofy to some extent. Your second question around the wireless business and a little bit of lumpiness here, and then what's really happening, what that going to mean as we go beyond March and into June?

Tim Luke - Lehman Brothers

Yes.

Moshe Gavrielov

From a wireless perspective, we see, I want to characterize this correctly. We had a strong September in wireless and improved in December and it's not like it's all going to go away and revert back to the previous June. It's just going to decline, and that decline is really because the initial build out of the TD-SCDMA technology is happening and there is some installation time and those kinds of things that happen.

 

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