Silicon Laboratories (SLAB) 24 Jul 242024 Q2 Earnings call transcript

Hello. My name is Tanya, and I'll be your conference operator today. Welcome to Silicon Labs Second Quarter 2024 Fiscal Earnings Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to turn the conference over to Giovanni Pacelli, Silicon Labs Senior Director of Finance. ahead. go please Giovanni,

and everyone. Tanya, good you, morning, Thank

We be the available this meeting Investor replay will and a investor.silabs.com. for at section our are of recording Relations website X weeks on

website. accompanying press earnings are on release the Our financial and also tables available our

today second and Executive Joining activities. and recent quarter Johnson; financial are Officer, They Butler. Labs, Officer, business Financial performance Chief Dean Silicon will Matt President me Chief and discuss our review

and include forward-looking will forward-looking our will call We to questions remarks risks the to conference results any forward-looking We prepared after statements risk of of from identify date assume in in available important these that and comments statements statements to to and take our information those to us that base subject contained as this filings, the are these today could cause uncertainties. We on which differ encourage factors no materially actual future. review obligation update statements. you our SEC

we release Chief refer the certain Officer, in website. I'd the results Additionally, to Matt Labs during GAAP company's of will call like non-GAAP Relations to the section to over Investor information. Matt? turn on our now press non-GAAP earnings The is Labs' the to included Silicon our reconciliation and today, Silicon of call Johnson. financial Executive

weekly second outliers indicates though bookings continued our the half year Many first of although Giovanni, even a still good end expectations. our report levels in level. the below customers top with of Silicon significant the of in exceeding morning, some reaching Labs everyone. revenue remain. delivered and Improved that Thanks, the are have patterns and bookings inventory survey results strong target second normalized, their quarter forecast excess earnings recovery the half,

The in pipeline is business. unit commercial business the business wins design on the particular industrial well the quarter. also Our in design record Smart a design strength on Cities in home set with with for record year track win

design management, meters. millions numerous units to management started and to wins smart shipping ramping insulin into pleased electronic customers, across and also [indiscernible] see shipping including we regions. and are We devices, labels customers production multiple of shelf

meter to care market support to expect products and our WiFi Japan. global and with the deployments into XXX new Japan also significant one This possibility metering And to win upcoming more Central these best-in-class of this in accumulatedly next-generation participating a gigahertz suppliers, U.S. programs. In smart We've business. unit to ramping of solution, design our We their large grow in ESL accelerate smart with our Europe. new X FG are market all the and top a largest deployments in XXXX Asia self-label markets time, market. of position has metering the begin in solution We're and continue to sub second solutions, expanding. X market globally and global the markets of meter deployments retail, designs momentum as including growth enable established continuing half and next a deployments America, the have domestic provider metering, and just smart providers like for in are like we become as secured support units We've both year year new shipped smart as working the ramping in in the XXX this X support the majority with into secured our to emerging global us servicing significant deployments capture outside the a the Southeast well a to our XX. with clear leadership million to this we electronic space. and will ESL and India, positioning application the smart see our China rollout of multi-protocol further customers. as fastest-growing we volume us accelerate metering award-winning ESL Last existing gains traction. In retail major meaningfully customers share We're

of convert has years. has solutions X the power Blue Series world's wins, opportunities we're of continues over of and consumption the we X WiFi at and seeing at believe The market the now meaningful past drive design largest our to manufacturers. it several the generate gains those including competing significant first market non-[indiscernible] Our in X potential opportunities products X and dozens share to to appliance product XXX to similar to

consumption, are maps. edge cases Series our importance As road into in use multiprotocol MLP integrate of Series and portfolio and power. proliferate, devices going industry seek security and engagement industry-leading our wireless its their X our products. were to securing power business security, integration new cases performance X our new first seeing to We edge unlock PSA as through result. Similarly, computing IoT early for Series multiple as into We're C the and potential now positioned is Level is a applications use product understand well customer they SSC strong X AI/ML to the also

in our of into of continue significant products, same have X started we transition the the current complementary performance, product and adoption We Series our time, capability. next-generation to architecture the platforms in sampling and exciting power and able advancements and momentum our platform. The is next-generation compute our will through X consumption scalable our at memory strong the Series of needed future. Further, based, us as while potential code that see to well current X from first common be strength X to customers highly generation going in are extremely generation positions Series Series

quarter. with proud of conference talking about work team's the execution and our series X this upcoming will last developers September. Overall, be more I'm We

metering down main anticipated, driver design second steadily and DSL of improving ramps areas, excess has win as us backdrop, insulin half. focus in year the inventory. sequential far to in this positions combined our As recovery their continue our inventory of driving the managing many growth so end customers such management, key been The with

our bookings into shipments driver in improvement this growth factors combination demand. our The That forward. and we hard channel of market the all future increase, timing and from of The moving remains an us these which provide will improve catalyst is said, will the of momentum third benefit to predict. for end X as

to remain profitability quickly laser-focused our on and we model. Lastly, possible as returning financial as executing for long-term

it hand the I'll financial over Dean Dean? for Now to update.

be CFO into Thanks, Matt. joining this QX. to stepped role great And it's having morning officially the everyone during

which sales and originally itself, of even the it'd than long a in player tremendously pipeline such markets importantly, financial base, years for diverse I'm discussing semiconductors, customer design impressive fastest-growing know as focus this as continues funnel The IoT. to life Those the the extremely market of convert end great me member breath company depth in Before an product products to design of more measurable the pleased belief for been the thought unique growth attributes be for line pipeline with growth future and to characteristics a of can business, the can line X begin cycles, semiconductor the happy many on is I've compelling our to by recover are with a you that I form engagements of customer observations. market-leading some into the we I'm EPS wins and a offer expenses outlook, to will organization operational I'm expansion. We admirer to and as product market to growth bottom who the diverse in applications and top focus come. as Silicon will a to clear is growth this bolster pricing become end industry. of and command that begun putting team. Silicon new now my understood. and thrilled and of long results our do emerging to Labs area pure ability that application valued the Labs helpful be in revenue that wins joined early to and renewed integrate our a are our I IoT us technology ensuring released singular and our We're A sales newest that such to of to central for key share be needs. Having know with as market. product robust improving highly the this the delivering report focus margins newest

sequentially and electronic Now quarter moving June revenue was prior $XXX in was the of midpoint was as sequentially XX% to was smart by XX% up driven and up XX% meters, down year-over-year. In above $XX revenue controls, building was delivering Commercial and strength results. double-digit applications shelf June such sequentially up June sequential Revenue growth. Home quarter recovery the business, our XX% increase forward path and $XX million labels, XX% XX% expected. million, our our all quarter million, Year-over-year, an Life, and The guidance smart revenue impressive Industrial year-over-year. as as retail and down hold. takes down

ramp During the health and quarter, of several CGM as in deliver begin completed continued continuous customers and new monitoring blood in Silicon products globally. to we're and tracking and to strength connected medical fitness are health-centric Labs these for qualification home to seeing and glucose growth security. In customers their the the saw at customers life are future we shipping customers automation has now multiple These production. applications business, forced

to direct increases faster but ASPs due our to quarter, the mix the were significantly, the Americas is inventory the below typical customers now and focus June revenue in compared unit excess sequential prior conditions. believe mix. Overall, growth volume sequential pleased than still all Distribution saw more our the of days but inventory of up mix that were approximately some our Even our EMEA customer prior the POS our XX has made product during Geographically, regions for and the long-tail increase is sales sequential the are quarter. APAC channel while up from to which the was in declined June continue being the down to on in we work during We channel, quarter, us an XX% encouraging quarter slightly versus of to level in more distribution driving quarter. this quarter, distributor growth. beginning distribution to up strong with

share-based our For a also in with line includes mix asset toward were intangible quarter, Non-GAAP margin operating compensation which our of operating expense reflected XX%. customers million, gross and of previously GAAP our was in we channel expenses guidance and direct Non-GAAP $XXX million gross was was range the amortization tilted the discussed. GAAP guidance million $X of which XX%, $XX million. versus June range. with as margin $XXX line was

and We non-GAAP loss operating on our was the continue capital non-GAAP diligent into cash quarter loss expense operating million million. operating while $XX losses. working our and experiencing for converting GAAP controls $XX focus back was

During approximately $XX tax of the quarter, expense we reported a GAAP million.

was share and of $X.XX than per non-GAAP tax range. guidance our non-GAAP loss $X.XX, rate at Our was remained better XX%. GAAP per share loss

Turning cash, sheet. to the the ended of balance investments. cash equivalents We short-term million with $XXX quarter and

sales of XX days outstanding days. Our was approximately

quarter, the which inventory. depleted $XX internal million the our inventory, net ended we quarter down of of million to During $XXX

days in of expect inventory improve. sheet Our on balance our days, reduce sales quarters and inventory subsequent XXX as further levels improved we to hand to position the

turn September Now to let our outlook. me quarter

inventory distribution our and direction this our limited, While excess rapidly right have moving is customers to ability is of throughout the bookings POS the somewhat year. course and improved in the

range to rate drive the $XXX quarter confident in in ability half year. uncertain, continue second be the $XXX revenue pace still in remain of is We and Although of recovery to to anticipate million. we the the the million the growth to somewhat in September of sequential our

but We across well the the with be as quarter being and broadly units up home home in returned commercial led and life to products both growth also the by business September and life, applications. the expect as in industrial sequentially

the We GAAP margin XX% be range September gross the expect XX%. to to in our in of quarter

to to which non-GAAP range the be of marked from improvement strong XX% We expect the sequential our also in gross prior both quarter. of margin XX%,

distribution to [ rate, M& more ]A mix the expect continue increase. those and run to As recovers towards would improves, normal a further margins our we

the range $XXX in to be to $XXX in million. We expect September expenses million the operating GAAP quarter of

$XXX to per loss to GAAP be the Giovanni be over to session. million. loss. I'll and of loss expected expenses of we to to million expect $X.XX range call for operating hand the in the We $X.XX non-GAAP And finally, we $X.XX $X.XX is the expect back the range expect in non-GAAP to loss of share Giovanni? Q&A $XXX range be to share per now in

Thank you, Dean.

XXXX Hardware in follow-up. IP accommodate call for Evercore the and banks, technology, Semiconductor, possible Networking X ask I your many light our we open to announce people Chicago and for up in semiconductor opens, Vail open and before the Before X you August in to and that and Technology limit call form I'd up key leadership markets, like Communications Conference as Tanya? capital also Augusta. [indiscernible]. in Q&A, We'll market in as IT ISI's participation now Conference Jeffrey Chicago to questions in question time the Hardware

TD [Operator Instructions] Ramsey Matt which Cowen. will of come from

I dig of guess to my into wanted for first a Matt, markets. the question, I end couple

you economics? could the company, there's about a the back market, out that the to I trajectory think the of that on the but works minutes size like a spend guys. following you on the bit how some then market, of recovery X we're a wanted the little of all Maybe the couple for obviously market. labeling unit market of of bit. company And growth for little And first just shelf electronic new a drivers I into dig your cyclical this is

an you see fast, unit roll directly, things as regionally, of off. the once do of make economics do go growth head go around do get the they decision go You you they trying the to does dynamics market through to that takes retailer it some my out and it retailers the intermediary, to electronic, super just

lot starting the we top these of don't a labels. electronic on, just overnight. shelf happen maybe with at or digital So things areas Like focus that

multiyear multiyear a partnerships this has a and there. customers been lot investment of So out with

we So first questions, answer being some work customers those the to label our with suppliers. directly of shelf is do

those label strategy, and and the maturity work technology. reliability. those not they the They've are kind products there interoperability, by roll a of seen terms dynamics. really for and of real actually the time, make now deployment technologies long a technology would with the of but is a we've So they the new in on increase of would retailers technologies. Shelf few is, labels around off as shelf the led a then I adoption One the robustness, in been think

now battery is factor years, they key, battery is on and return. that of not key about life here retailers we've reliability the of They Another replace. round And these do enough then last then also depending the the use labels is key the seen software may is life, I can the critical. worry where how that to think

retailers positioned seeing those Our not be accelerate. together. adoption consumers going All are new And of returns seeing products. unique things to seeing secure, leading experiencing last to that's to a attractive a work environment them. lot they're as this we've is areas as result a We're retailers of that X that really actually we many work seeing retailer, well phenomenon retail implementation, time. coming see together, to critical deploy in in And customers we're space thrive really is ourselves a are our broad of, a that perspective, products all as develop And a proprietary technology, where supplier we We the life as which globally trend. [indiscernible]. one, the said, battery underlying in they're as liable, very this because of our a and a know and they how these of things are IoT. a well, they From long are X well things

of then our also within I They'll think they'll we've geo in shipping days in So market. happening, a add ways customers region to within think unit those still about last stores a terms of And then volume. these project think deployments, we're keep I'd though most what's and see going. configuration. in expand and a the [indiscernible] retail lot this or even of years, few I early the over started that

is the of think because the it's We and early still days, is progress strong. really here position a the one, and again, of, like technology this we but maturity And the durable trend. we So see. our returns

excited we're So about this.

the details Thank you, for all Matt, there.

smart think on point metering for guess it's important as the second but market. of the customer. my sort on I similar, I question, an the returns

the different Matt. that set the a in should success level market the prepared of ago, and Japan don't I next, different years months? of kind in some lot their on regions script, in a there's of countries, flight us in that And it what developments just seems XX some in and know, customers like your your maybe different and you we now had guys mentioned You few U.K. the programs from programs have expect in

more meters seeing the and the together, in peak these rollout they a it's as if you'd takes I resilient its as and of One on the a moves, the remarks. roll-ups of terms is Sure. all DSL leader. is things the to maybe life XX are WiFi, customers it started, kind years you once you or the rate at we off, saturation, XX a compare much gigahertz kind to to And [indiscernible]. market cycles. of we you which the having expect things, to roll in contrast what mature the in because little mentioned, scheme years function that terms to durable technologies That start in U.K., leadership we the across coming end the it be just all good market deployments pace gets of together we're of there then out more but multiple dynamic positioned Bluetooth, saw could grand different can very mentioned in back need, X our very prepared these renewing market of the expect of business way will, Again, couple it's and sub in market is for not and technology, happen that. well rollout But record technologies then picture. is the bring of for

the the technology you that meters, Anything see see we're those customers. return it. just the seeing of again, more mature important, the I deployments. and have new those there. And know that's you And what technology, reliability, that becomes in So this So accomplish, and returns this geo technology more expected, think deployment really care get electric. for geos, give see to is inside a that you only been go brought trying across has originally this we're Putting and -- maturity than what and gas, is combination of seeing depending stability they applications right? And a they each to deployments intelligence out leadership then the as also license water new and different globally. lot new has the see and robustness the and position the point the they're the and on abouts and we their but returns for maturity can

we still So sense that's don't X new positioned technologies take days. we're not coming continuing what the continue think doing we done. and is And space reliable that have space It's to Series to and us. that But the robust with long-term, leadership bringing Series victory and for X. early granted, lot this with and a very in that what's for we're a we in well

be our from Barclays. of Thomas next question will O'Malley coming And

first Or quarters get upswing. upgrades revenue taking bit midpoint Is driven was It's any the just just tailwind of guys products? held September, it about thinking better your about by little that the sort robust of really a seeing assumes your of some than look of on guidance we we Could you decrease, of be in the should would be couple on My in another we next Is assumption talk how to you the of last the the the pricing newer should of units? some kind over pricing couple as a ASP step-up units. largely of quarters. lot X just when of imagined upswing. at on have kind

for good question. Tom, This is Thanks welcome. Dean. the warm Yes,

quarter versus ended channel it of function quarter the shipping In the were What find products of versus and is we nature of what quite in you long largely look we September saw large the now the a direct mix actually, bit just is primarily that we into in would. bit the front, ASP the June is between tail guidance we customers. On a customers more would as different consolidated and then June a little ASPs than mix. quarter, direct the typically up

can So I in at we on a look stable. I too much. think continues front, There wouldn't that if all what see the quarters next see much lot been Tom. be change into whole least hasn't helps relatively I of you'll like-to-like, the from I visibility the last change ascertain, and can from of at read what couple probably of a customer forward as Pricing quarters, to couple of don't change sort ASP that into on customer

what that out as said, the And in easy to add exactly. right really it is, there. the seeing our mix. about way function environment just no now to I we're is big And price a think change of we

is goes that up margin mix for gross as what that's see QX guiding QX, understand. people you'll revenue important change, improve, from we're to continues and really So and the which to to

I to that the And second part back Yes. is of mix obviously think [indiscernible]. that the

So you XX said [indiscernible] was days.

terms XX% If just can look the what's from takes? [indiscernible] gone get norm, place Disti being how like XX% see math, that back and about going do of XX% XX think to revenue. there? like like a to of similarly, to last you you you've is Like Can think long is you Like for you're to of guys days X the over like where which right target talk in start these quickly do some was by more quarters, the you to how the cadence you aggressive? low what

that's Yes, right.

channels were the and I look has gotten What burn quarters that's inventories. down think and we pushing than of to all at today. X of Look, happened is I nobody inventory is [indiscernible] probably down healthy sort into the to of inventory deliberately shipping Typically, kind let quickly, typically watching channel to call going XX we to -- it customers at customers it sort said, we for days been sort not I'll is replenish that we're as replenishment obviously keep burn also and would channel of think that. we've try moving. for XX, as to distributors, to some, and XX continue lower the expect. look roughly mix Look, -- they're the you like

be typically, to direct. revenue channel of XX% like said, of our quarter from I think you the and it. based about do coming we're XX% Just kind about clear ended at we about channel, XX%

So next are channel I that into that through then think more a I to we'll and down, holding like customers as couple level. start days. of back the is hopefully, not turn in tail to just we're XX, set up back rate, see to and And more we'd come quarters, to final distributors would that XX contemplating pushing the But moving those said, of comfortable inventory the not we do that, start long September something guide direct as normal reiterate, inventory for normal towards replenish we're your that I course And like opted. access a the run over keep inventory their end coming normal distribution of versus business.

of Our Needham. next Bolton question will be from coming Quinn

clarification answer sounds does normalize. to Just on sort saying implying like of Disti Dean, the it that a Tom's or quick your you're question there.

sales Disty a I little do bit think said you the mix back think think level. kind you typical get end to takes down Or into to before over Do you of calendar year? I 'XX it this but of more. you hoping of XX% you by the a couple pin that quarters, more to normalizes try

a Quinn. you're the highest I there would person, rather of odds I put betting ball, crystal But back way the sort were really a on Yes. have of normal this than calendar I if all early don't end year. getting by to perfect XXXX

than probably and see behave the I customers So end and backlog that's 'XX. what of for on rather early an XXXX way it's can an

my basis helping margin in all I of roughly feels is -- towards question disty that fully in September not September. it's the the entirely is first some kind Disti improvement is It point of that mix probably mix. quarter, the like but XXX guess you're knowing somewhat, there

are us the of margin drivers of the just gross can And the biggest Disti. what towards walk in the mix so beyond kind September you quarter improvement back through

channel, product Yes. and there's I then there's absorption overhead. there's of mean specifics

to guiding mix. think channel move and In different I now September quarter X that the quarter XXX basis points. to around It's XX So levels. all contribute product June from largely XX,

looks continue or then we forward for from as on of products I less few is set as of channel at a if an sort is in it growing And back September And an overhead list And when and absorption than customers a quarters. over forward So has less look you as I being range. contribution the September in the sort think to like of probably there then think specific normal million by -- well. revenue. mix essentially about look to is September factor specific degree, contributing a a margin third as then I of progress then kind will of contributing XX% shift going points probably to overall are of better make into quarter. revenue the but next go it, products likely Channel sort the XXX contributing so okay, certainly and the that probably set overhead about as there, $XX basis and the quarter, sequentially of I sort some

to you'll Got digest see And continuing year. I happens you -- be the it. largely 'XX. at consumption. just inventory customers think with obviously, lower line second shipping guess of to you some when thoughts Could think the back Is you to year-end? Any half something in by updated continuing early albeit on rate that a into

when Just thoughts updated in on line to largely think any shipping you're back you with consumption.

direction. consumption. to at we're looking that don't of on precision difficult They this know back things people direction, up, excess when the consumption have top bookings It's actually call a sort back, sort -- we the in I do indicators don't is know. I the we the I it's full that off. down get all our normalized regular back sort the we're their right to it's bleeding a trending our coming don't tell. prediction. anybody think of us, to look, customers the have Those has for I are it, any When great tough of Look, a lot therefore, coming surveyed are question. right and, one. of rate. of coming list, on regular trends. POS inventory and great going

no it's of of a hit contributing, going now designs fit that like great to production Labs to a imagine by to [ be X starting to you customers. degree. well number I thousands ] company also but also clouded mass Silicon There's And that's new are are with some think for that everything. as generic have it a answer

So of think when we're you call but short, yet, is. I to want consumption normal long if and quite add Matt, level kind don't that tough what to know, don't story there really anything.

design XXX% Dean to it. the kind either is I it's thing and about we've of going No, clearly, we've guide. design cycle, we're but to on an QX finally The early of that's pillars that design QX are, throughout is think design think is level pace direction, driving is incredible been consumption which is X ramping. but win not annually add right our inventory over drive and the at ], growth. remarkable, days, yet, are last said, we've as they our And been win to years, ramps see this those win [ done ramp encouraging starting talked only stacking the not the in few Maybe I growth

like end But a is like there. most that uncertainty obviously to destocking fair which end still to design the the some of the market, to starts market us out watching on in give progress wins the forward difficult then the still is as to the point. third progress pillar on there's moving wind going that's lift down amount And some So the call. at destocking, addition

And Pajari from be Sony Raymond. our coming next of question will

Matt, for Maybe pretty smart can being talked metering. one on about you here talked I win strong. particular, progress WiFi the design us market. know in you Matt. you first some on update, about Maybe the momentum an give

this Just what When target obviously, of And what as addressing? from your metering, do about XX smart of I think how is XX much next -- outside are talk as kind should to about we a to SAM this market. months? you curious with the markets about as end you're just to curious overall mean, you we of large product? And think think revenue Wi-Fi, market WiFi how the contribution very

just a that much as Yes. there. as I if can of answer See possible. I was lot of taking notes

days early in are we First, WiFi.

which said, exciting we've shared in introducing the product our first we a company, or the to to on often see design, market starting those a those product is funnel the We've prepared going product, year it's start getting you're have a opportunity you as going cetera, X take really is customers design shared to What many that introduce depending to see. Once to as opportunities remarks, we're first As , the space. great us in we product wins, ramp. we're that record to to -- reception. for convert as was that application in et is is see

would quick continuing answer 'XX expect growth going and I 'XX. not to is, see WiFi the So into accelerated just and

of types those product the sand, the of questions. terms In

for sale bringing on And as WiFi power said we're life brands our a is, now lack there world's the few the I've what our times, of X And right edge. applications IoT backyard. one-by-one battery are use is a better We leading the applications. which focused for at backyard WiFi consumption term, is

So longer serve where having customers. Because designs in base pull-through those those technologies together instant also in We And interest with life wins see we seeing the supplier customers a things almost where existing put lot large markets wireless for seeing of of battery all design, of and a where X and other design spaces. opportunity someone seeing in our customers. we're needs these we're that's our meaningful. of we're lot

that. and it as So that's big and way is is this think time. you quick to important the a of the And answer said, market, these ware of kind of take things

in position, should expand So of the to customers as and SAM work, the direction, but first increase product of those and continue see like that seeing what coming that the multiple out the that the a to offer and build lot we right going to we forward it's gate, expect out capability in markets. it's offering we're you products move

Got in And on in question China. Very have then I helpful. a it. competition, particular,

in You mirroring talked China like sounded metering. the you're smart market. about participating smart not It

about competition for that? in from any been suppliers. And domestic hearing wondering we've Just there's general, if increased reason

that that So be will market, if what about you helpful. seeing could you're in very talk

Yes, sure.

The is the answer quick for the quick So China not there. lack is why terms solutions. answer it's market local in a of of not competitive

would you world's see but of one go to That's consumed We way that data. of the technology full inside China. meters the ones opportunities answer have want intelligent the not for do China of not leading the That's providing the fastest solutions export that infrastructure. they We be to in can imagine the to foreign outside a China, supplier that do behind for question. that

see don't think within anyone. be Chinese deals considered I Europe, we So U.S. think and where pretty in other dynamic supplier for smart I surprising that a the be infrastructure. similar don't would to common what should and metering It's

right of years. suppliers now China. new banking have It's kind alternative of a end if for you some but design that terms strong nothing the That's no that is win it's are the not seen and weak, strength favored. terms only numbers. have in of on we're In solution amplify probably But next few last forecast win there's What in the building improvement. still you of It's that, local momentum China, we although nothing into question is we're up seeing new. over gone still us, on a in or our market, relatively to

helpful. So hopefully, that's

of Stifel. will question Smith Kyle from next coming our be And

could markets I on congrats end in the there. start off, quarter. this wins and growth record First design sequential past continued multiple Maybe

you don't the in design great. And lifetime commentary leasing if on seeing I wins -- color any revenue maybe trends additional within talked prior the of So about value quarter. you're streams be on would we've have bit, a pricing that this but any

Okay.

try win try piece. let So design the I just X -- to me to

So the quick design of answer is, about we've wins. the trend a talked quite bit our

time. shared targets sense we're need we always of the think things you're model the we We that what do to aware, which that all design growth about way levels about, design talked magnitude XX% our is look well driving financial is wins But the sure revenue combinated over the the in of magnitude. win we as at haven't considered to make

cycle years, you So strength. of any seen design wins grow few consider and seeing do annual And seen and normally more. those a growth which we've you basis, design go not if been wins incredible market securing trough you throughout an that. see, somewhat of that continue amount to really annually have see is down, part when successfully that We've over last we the to this on not usually if cycle, wins the you design in go revenue we're correlate or entire through

been exciting. That's encouraging. that's we what bought. So That's

lot last X last wins last of a starting when I a we it have lot And that broad those geo. to to didn't for the serve, We're not really product think starting away, for X a duration to, are market exciting. the expected on X of when to reasons, wins that constraints, design sharing ramp they and We're piece We're years. or to surgery through wins strategy and that's for across talking and been for see see that's part, we X as to wanted years, not Some to happen or share to right? there, year. decades, maybe some expected But the X this the starting applications. is most is as delayed. customer, multiple last of lot those are ramp see those design the as those works those disappointing, were starting but but lost, not we we we're various supply today, stock going [indiscernible]

I trend here. days think from will give to early the say growth but sequential we can the So confidence that to we we're like seeing. that continue drive us And

I ask, being mentioned how on would and are color that expected life. and grow additional the And a in that revenue segments September exiting Maybe the bit in quarter. September you business Great. to you more With any both by growth could split, know for if you great. home my little follow-up, both I see year, add be would there that

to a upcoming and forward. it the A home one, the bit Yes. the give grow life September the guide sort down quarter and split guidance We that actually X of couple cycle we've different of areas couple than little the earlier the see when a specific into between commercial. [indiscernible] as we went industrial the life factors, commercial. and into home don't up, than in the is But likely quantified faster quarters going industrial seen do of look we we observations

XX% sort X industrial a grew in line, September are what pulled just sequential that ones see. has does that rather some bit to though the that consistent see [indiscernible]. Home little pretty that And can pretty than Life quarter, to starting we growth, to can in take I to the both those the ramps June commercial. product Home favor starting emerge foot the growth, we're and be So of quarter growth just has we [indiscernible] think in just to of between more businesses much see Life so of XX% specifically attach and new even

growing prepared our of in end we applications. multiple Although willing are across remarks, like both said, are their and both

from And Company. the Cody Acree coming be of our Benchmark will next question

new currently shipping I September. what when on start that color to guess in is you or expected you've taken at function. a consumption back level be the stab any But

PYes.

answer levels earlier, quick is, a and the not QX is QX are think I the consumption. guide not I is as consumption mentioned a

far in as articulate we've that. to trying that's gone as So

I who remarks, than think the the of piece more some the caring improvement inventory getting other customer is of is as we should. we -- the But the in still inventory which number out end are or they level in see have said big improving. to while of still we there right customers levels inventory we customers excess prepared

but to to obviously of outlook. sequential make And a that's yet Anything that deceleration out, not about QX it growth. or your somewhat deceleration? but got what is say with QX number $XX your million we see how that those increase, QX. there your I December factors good So And play in guidance, very a does your guess, from

across probably Probably the for quarter. earnings I think the We're to peers. So, in out shakes I it's it semiconductor the relative of early sort just strongest of sequential strong of September take it's everybody this of that you'll where of on would probably see sort see still But year many do basis, you'll as probably probably quarter. we'll coming so see the cycle, in growth a most the X numbers.

made I think I is was think of thing at given fact that would you the logically the last and would progress say some team quarter downturn quarter. the other year, what I jumps. and sort finer has from every the starting QX really quarter details the would actually uptick point, rather big And a in you million jumps The good sort had March in to a probably June big rapid of very of pretty be $XX this. here, my working we're just we're And than of expectations, normally will increase continuing of and sort the smaller see just such for don't be see is out we see see

X ramp pillars trying important to of encouraging in design to it's right remember we're that the very market and Between signs call. win to the consistent then it's inventory are while we're seeing that that be fairly the the And itself, end direction. trends difficult and stocking,

right of encouraging, had is I there, and course, ball the which think a important. most perfect trend helpful be crystal the in but we -- is if that So would

question our JPMorgan. coming Puk next will be Peter from of And

it want could point. it market to rebounding, quarter, Maybe was that just your for what about but seems if are just seeing you of the not talk China longer up like follow you are XX% sales. is heard yet. from guys a few of term? China We I on Last like this peers your expectations market

Sure. Yes.

are answer. think future banking as we quick I is there. a answer But the not quick some we're improvement on seeing our

to I up think going revenue going probably that of is it to lowest up XX%. our XX% China was XX%,

is our well. as growing and total revenue So

headwinds. that that earlier of favorite some lot we end important I a around But market. There's about think accordingly, that uncertainty and lot We in there. really still So it's local there's of we're a set talked improvement geopolitical seeing challenges still supplier. expectations

don't get future opportunistically and numbers it the will there for everything we wins deliver our we banking regain we talk need So can it to we're anything do we on progress, to that about. but and design not and

So hopefully, it. frame that helps

minutes you your platform. prepared into in you. your from And of then talking seeing can remark, customers? use about cases Thank AI/ML so the TX spend Series Maybe your you and talked you're Great, some for forth about few what some integration

Yes, sure.

So understand. technology in of there for parallels, prepared to what we're we market. What the areas other said remarks, I seeing that hopefully, was lot in brought helpful people seen we've as that a and to

offers. like we the people we Security bring into of of first think that's levels we something customer is is time, ahead X to that overkill. needs that introduce what market had dynamic where portfolio moved this recurring and like securities customer example. that So the and over a Series half PSA When the X great Level

now multiprotocol, Now we're that's it. winning And many wireless after that, how A design the because lot got the different of [indiscernible] design the meet happening the we level technologies the of will design competitive. applications from see of and market. multiprotocol we performance all coexistent

really solutions You AI/ML we've accelerators in machine and ultra-low are AI, our brought on are built to core space. same specifically, that machine allow bear the that to applications. brought well taken we learning in that that markets power see of the battery-powered our have production multiple expertise to the learning edge as this at are interims thing. And exact We've to

see areas. high we're rate Customer So customer customers or learning in of we the front we increasing and I and in it accelerating other the terms adoption. the direct of and because strength work year see days the and it their we they is of X. over the seeing in early our of that But to still last call offering, how is terms be get through engagement, be the deploy what these can will applications, working interest machine

we today.p already So industry-leading very lot solutions And on machine going production there. But we learning perspective bring we're and announced Series trend to is which ML like that already will I new seeing a think the that to capabilities X the have you're also we've the continue, that exciting. IRP, to of our an a whole see as in

back call the hand now I'll to Giovanni Pacelli.

all This and us Thank call. morning. thank for joining concludes you, you this Tanya, today's

Thank for call. you This today's conference concludes participating.

You may disconnect. now