"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: |
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| Percentages |
| Growth Rates |
| |||
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| Q3 | Q2 | Q3 |
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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% |
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Net Revenues by End Market: |
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| Percentages |
| Growth Rates |
| |||
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| Q3 | Q2 | Q3 |
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| |
FY 2020 | FY 2020 | FY 2019 | Q-T-Q | Y-T-Y |
| ||
A&D, Industrial and TME | 40% | 36% | 40% |
| -5% | -10% |
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Automotive, Broadcast and Consumer | 19% | 16% | 15% |
| 2% | 10% |
|
Wired and Wireless Group | 31% | 38% | 35% |
| -29% | -18% |
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| Data Center Group | 9% | 10% | 8% |
| -16% | 8% |
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| Channel | 1% | 0% | 2% |
| NM | NM |
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Net Revenues by Product: |
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| Percentages |
| Growth Rates |
| |||
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| Q3 | Q2 | Q3 |
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| FY 2020 | FY 2020 | FY 2019 | Q-T-Q | Y-T-Y |
| ||
| Advanced Products | 70% | 74% | 66% |
| -18% | -4% |
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| Core Products | 30% | 26% | 34% |
| 1% | -21% |
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| 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. |
