Super Micro Computer (SMCI) 10 Aug 222022 Q4 Earnings call transcript

Ladies and gentlemen, thank you for standing by. And welcome to Super Micro Computer, Inc’s Fiscal Fourth Quarter 2022 Results 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] Thank you. you your Relations, Investor Noutsios, may conference. begin Nicole

today for Micro's the and call afternoon. With quarter, And discuss Chief Super you the thank me have is XXXX. close XX, for from Good Executive to Officer Founder, attending financial ended website. Weigand, June that Charles and are the company's Dave Liang, which should Chairman fourth was Financial available of of copy distributed By Officer. a Chief the regular company and trading the on you at now, received news results release

As will under available website a presentation section reminder, to during to is company's today's the Events call, & Relations the that Investor of refer company Presentations participants tab. the on a

for note our the you'll expenses, expenses, without margin, of We Super risk to year allocation have expectations. also of a potential materially operations. of other first today published are discussion limitation the management's gross and and scripted including forward-looking could some Please those hear information that statements, company’s during commentary operating income that consist and XXXX website. the and results full impact outlook, will year of on There guidance of on and XXXX results quarter number business Micro's of our the revenue, future including future factors business cause capital regarding of COVID-XX fiscal taxes, our differ the from

XXXX press our risks the XX-K these more release issued fiscal can You most about filings. other afternoon, and in recent earlier we learn filing for SEC this our

of presentation business results no We non-GAAP the forward-looking of are will Super of any refer IR and website. today's the to Most update to documents page these All statements. obligation outlook. assume available on financial Micro’s

our press published For non-GAAP accompanying to refer today. presentation measures, our the earlier release financial an please to of explanation

will remarks, press At Charles. reconciliation we GAAP the end of non-GAAP attached today's release over presentation. prepared today's In today's analysts results the a to turn for Q&A is in session addition, a questions. the to to and sell-side now will call I information have contained of supplemental ask to

Nicole, XX% Thank year announce with great afternoon, both ended bottom-line XXXX growing annual ended of billion year-over-year. Today, XX% QX pleased quarter to you, with and I'm year XX% revenue surpassing We growing of and and quarter-on-quarter, surpassing out X.X another revenues the X.XX estimates. fiscal record good milestone top with year-over-year, everyone. billion

Our given obtained year ago ago. are recently end quarterly and our our months results several guidance range three above exceed given weeks and

value three than due adopting total resulted and design based solution recognizing has a competitors' also scale at our plenty Our drive strong quarters strong are green the quarters design platforms. solutions minimum growth growth in our wins energy four will solutions environmental challenge and computing to especially run wins the strategy in story. and consecutive growth years. green solution and coming rack new total of on IT believe our on is GPU and And to solutions, fueled continue the of recent by AI solutions, times customers More I our rising in our accelerate and of growth cost. faster The computing

Now, look key some quarter. and highlights let's from the of year at the

year. billion of our totaled range our X.X First, guidance up revenue year-on-year XXXX, XX% quarter prior above

$X.XX end fiscal range year ago Our year per exceeded of $X.XX year-over-year which non-GAAP guidance grew to a of earnings our compared $X.XX. of higher $X.XX share XXX% the

$X.XX $X.X net billion billion guidance totaled to range year-on-year Our $X.X billion. above of fiscal up up revenue quarter XX% quarter-on-quarter XX% fourth and our X

IT preference range to high-end now to way USA our pretty and quarter has operating total Our ago of strong our fiscal in growth tripled solutions. share non-GAAP total $X.XX guidance robust year $X.XX of leverage per this much IT scale solutions year. fourth $X.XX was With experienced above year-over-year and was $X.XX more earnings a to compared the our and rack and

going to greater attraction domestic We even will gain continue forward.

total our both Asia years. expand to also will and IT Europe the solution We and coming markets quarters in

opportunity scale of global We plug become leader this IT are of solutions. rack play to generation and a excited as

year of results reinforced competence range. fiscal Based $XX And supply last in mission and guide the least preparing we sooner a target achieving billion much we at revenue robust quarter. $XX last billion Our our capacity, current mid-term our on our in that year. guidance are at now we midpoint than discussed our annual for

least EPS are conditions billion we at begin X see AI guidance continue with supply billion uncertainty, $X.XX, expect logistics will at macroeconomic and revenue platforms. X.XX prior of issue X.X From following and revenue forecasting order for optimistic for accelerating will also billion. subside. the chain the in to are confident above that billion of XXXX September compute billion that I'm demand to to be X in some X a be the perspective, to quarter. to fiscal market increasing upcoming revenue We we range the full now our We range

single a increase seasonal are by optimized development. lower meeting which our infrastructure plug at billing products growth create This our billing for IT supported us with demand We growth customers this solutions rack-scale savings. in XX total to TCO system cost over and allow with level play and rack-scale solutions highly are and significant both years our direct of

a streamline customers total [indiscernible] our approach integrated resulting integration, shorter solution IT solution quality much performance. design, for optimized dedication, which IT in Moreover, control. solution simplified times and lead and total our Our

center rich composer, these leverage efficiency. cloud-enabled other help orchestrator, analytics. In products [indiscernible] addition, only can Data cloud super manage products to grow and easily workload storage information security compute, can acceleration, at our building operator and including network

learning, our center cloud, and shop machine AI, we with draw defined stack XG, our market aligned infrastructure monitoring software management enable software a enhancing networking, and IT will shared being are for by functionality public and as validated a we one people telco. total business storage, to solution investment hybrid approach automation building secure This we a growth that more our certain expanding with configurator optimized solutions So, capability in value. data system as stop service emerging that service across we community are as and were speak. new more to intelligent in and previously our platform BXC application intelligent out our These much automation, methodology product used customer of that BXB leverage interface broader to base. auto will IoT We carry and our and is customer

tremendously service will our year. fiscal our pretty expect tool starting Most customer satisfaction and initiatives, that product much operations, base process this this design, help considerably We from grew improve the effectively. importantly, automation customer and will go-to-market grow

between billion in we global annual our to a XX build capabilities revenue support our continue in XX billion to ramp Our current as manufacturing scale and up capacity is scale facilities. to next

today [indiscernible]. play and have During the shipped we new quarter, double quarter, capacity with rack-scale our we -- XXXX September the over at in June building enhanced our plug rack, features

capacity XXXX quarter now. for to rack-scale be up direct Our can

activities with mix development with product close very to lines. grow line GPU top total Our HXXX our very NVIDIA continue strongly strong extending product and partnership including system

reduce gear, early our committed market and our to of ready just impact upcoming Switching and AMD lines in processor stay course lead deployment resource our operation. Intel programs available. be the solutions green Our Intel the waiting customers' to new environmental product with with AMD for computing designs we and both to saving are mostly

operation similar efficient but save has of glad our Higher and Mother $XX As XX we and total we Encouraging, focused solutions. IT do electricity more ago, to we Earth. we on data an from since to customers. more power for terra visions been that dynamic will our greener technology time strain or have challenge costs or solution ago. adoption this since are even at customers X.XX costs ever our XX TCO better of decade to of importantly, higher. forefront level, suppliers’ X.XX IT equal planet. for liquid at very fully From of quality more market fuel green this higher can than see increased center, a future. near air put cooling their By we and in saw building trees apply our energy to help and electricity here getting perspective in must with the computing turn Super our Personally, of cooling. continue to or We fossil calculations industry savings demand customers cost other many achieved will rack-scale to and green computing Micro is limitation for X rack-scale opportunity that DNA delivering for the even centers a to solutions companies [indiscernible] energy founding in solutions years our with billion much potentially usage equivalent the more our reduction industry temperature energy value solutions on eliminating our greatest seen saving and this employee solution the in go billion than evidence achieved I’m plants or

performance total least time our continue Xx and is strategy is to evidence believe expand accelerating. that grow will in with our continued years we at top room see year-over-year is bottom-line the our applications. Our another coming IT why that I solution to

intersection our business market verticals, we revenue billion most to Officer revenue Difficulty]. My and strategies future. the Financial short-term and to software and additional the capacity our target [Technical will escalate continue Dave and will We I and in now with the our of Thanks. the continue to new IT by $XX accelerating team growth provide quarter. is address pass to our which share call these to extend gain it to and enhancing Chief continue our and technology operating total scale billion Weigand, will capability to solutions, increase details timeline XX will the I

or to Charles. of you, revenues year-on-year billion quarter fourth and fiscal increase. pleased XX% XX% Thank quarter-on-quarter report I'm X.XX

billion initial to X.XX range of billion guidance exceeded billion. billion our range revenues updated to Our of X.XX recently X.X and our X.XX

year revenues representing fiscal year revenues over X.X XX, reported of fiscal billion. XX% For XX we of growth billion X.XX

enterprise revenues across and verticals, and to and organic hybrid targeting platform. We growing recorded complement resilient Our expanding our with market million of and our of in XXX all three and with AI the the total drivers our operating GPU leverage. networking, XG end diversified representing margins channel balanced AI software customers customers, strength, markets. and our In nature XX% and workloads, markets achieved quarter, with traditional enterprise demonstrating QX gaining and growing Edge quarter-over-quarter. was revenue XX% of momentum growth list and These Micro our of last XX% initiatives product driven year-over-year new growth, and fiscal customers growth IoT offerings. OEM quarter enterprise public in fourth this accelerated IT storage new cloud growth revenues and solutions large channel fast The segment Super defined flat and up are by versus leading revenues accelerated year-over-year

XX% up and XXX of year, XX% driven quarter-over-quarter segments data appliance growth year-over-year OEM QX and new up representing data large XX% center and revenues strong large revenues customers appliance achieved by Our and XX% OEM versus with existing in center million customers. last

segment revenues slightly Our last achieved was year-over-year X% in QX telco and of quarter-over-quarter. X% IoT versus representing X% revenue XG up million edge down XXX% quarter XX and by

full organic to For enterprising revenues. revenues grew year the our year of our and XX% fiscal channel XX fiscal AI and XX% XXXX, represent

and of center Our revenues. large XX% OEM XX% data represent grew and appliance segment

and telco emerging Our IoT XXX% of represented X% total XG, and edge revenues. segment grew

U.S. revenue. of node and complete a quarter-over-quarter a XX% year-on-year comprise IT market basis, revenues, X% high and and year-over-year volume customer accessories gained had mix. IT system XX% geographies, the systems Asia basis the world basis, of has Europe nodes of product total shipped Systems U.S. share QX as been the a with to with total due on mix also workloads. systems well total Rack-scale QX representing We for revenues increasing On revenue and increased of emerging and distribution XX% XX%. revenues across Our Solutions our XX%, and advanced as of balanced subsystem ASP growth as XX% of steadily. rack-scale server On solutions increased represented a rest

up In points of due X%, price improving year-on-year increased basis QX XX%, Asia higher non-GAAP from up from decreased Europe the XX% the increased factor XXX X% lower quarter-over-quarter world basis, the our XX%, basis mix. operating revenues and increased rest discipline, increased continually in margin of world and leverage increased customer utilization, XXX a rest product was the Europe points efficiencies gross XX.X% XX%. and Asia QX quarter-over-quarter freight U.S. to X%. and On costs,

success controlling While some costs execution. other the achieved in logistics chain supply disciplined freight through disruptions and

long-term total Our target above QX XX% gross was our success margin demonstrates to and of of the high-end the of IT new our range high model solutions. XX% value

basis year-on-year slightly Turning to XX% OpEx a XXX.X and operating GAAP operating and X% million. increased year-on-year a non-GAAP XX% On quarter-on-quarter QX million. basis increased from expenses expenses. to quarter-on-quarter on increased XXX by X%

customer quarter demonstrating improvements operating versus in X.X% to expense revenue XX.X% year significantly with driven along and ago, and gross the by margin operating for a last X.X% margin Our higher and by driven disciplined new mix increased quarter non-GAAP both product leverage control.

margin operating XX.X% exchange of X.X of target income X% for to income in interest our by foreign expense expense and FX gain billion QX approximately X gain expenses in range and compared $X of million non-GAAP of model million to was offset X.X Our in million interest also X%. last quarter. above in million as Other X.X consisting

as utilize and before line credit we accounts sequentially short-term increased expense financing our interest inventory Our receivable.

on recent short-term rates by borrowings driven We higher also experienced interest fed-ex.

a million GAAP the basis a This basis. XX.X non-GAAP quarter tax million was on XX.X provision on

and XX.X% tax GAAP Our was our for non-GAAP tax was XX.X. rate QX rate

increased the expenses pre sequentially. lower higher of were non-GAAP tax but GAAP Our rates profit, levels though tax and

JV and of to from mix manufacturing of exceeded our Difficulty] EPS due non-GAAP were original XXX to range QX a updated price this discipline, We XXX, quarter leverage. [Technical higher compared which customer recently end increases margins XXX. income to Lastly, $X.X to higher of efficiency, The share of revenues, high last from delivered product XXX as range gross of diluted was to XXX of combination and and quarter. million the operating our guidance the strong our EPS

and X% XXX. accounts to XXX EPS For versus to flow non profitability, in while initial receivable XX% to due due the QX up used sequentially of sequentially GAAP EPS the increase our million compared with payments capital. operations payable due to revenues, inventory the was Accounts XXXX, million of to full $X.XX for QX operations our and by along flow quarter-over-quarter. XX revenues, inventory fiscal in we our Despite XXXX guidance higher improved vendors. working quarter-over-quarter management trimmed better used year-over-year cash of was reported in timing Cash of higher which increased non-GAAP diluted decreased year than our for diluted of our fiscal XXX XXX% of

was $XX QX cash of quarter. cash last CapEx negative negative flow flow free million for XXX Our XX versus of million free million bookings and

design bank utilized ramped XXX Difficulty] as while globally. debt those sheet we production closing of position Our cash credit XXX was lines bank revenues balance and [Technical for higher million we was our million, of receivable as new wins accounts

revenue chain robust confident expect share and platforms win, together logistic new flow. of global management our to to profitability We capital look to with remain the gain outlook supply that and and improved free fiscal our we by costs significant begin and in As ahead operating engagement XXXX, leads working design our We're with we growth long-term revenue driven new in better continued leading-edge growth and some cash optimistic customers. stabilize. for market that profitability

-- announcing program XX, Difficulty] are million $XXX buyback X.X. We also January through stock attribute today [Technical

of days, QX XX versus and efficiently. decrease with XX is that sales prior quarter while XX outstanding XX days [Technical of by versus XXX three the managed days above balance was XXX XX inventory cash a target and of QX the cycle Day of XXX more payable to days to quarter, XX Turning quarter-on-quarter to Days XX outstanding days Days. came range representing was to our metrics our up capital days. Difficulty] to last down by our days inventory sheet conversion working compared in days,

about sales continuing disruptions income billion share wins range the sale per to XX, GAAP for share macroeconomic $X.XX the turning per net design remain for markets. carefully IT outlook X.XX solutions of ramping $X.XX September of up income to and global our in to play diluted the We're multiple we supply ending non-GAAP we and expect business, enthusiastic net plug total chain flag billion. in XXXX situation, first the Now quarter diluted and $X.XX in X.XX to to net XXXX, fiscal $X.XX. watching

they to personnel are in in XXX to and We be operating higher included operating continued are million not operating GAAP GAAP approximately to to expenses non-GAAP margins stock-based to X.X compensation expected million increase and expenses million other QX in investment expect expenses gross be and expected costs. that X.X similar R&D in due non-GAAP are levels. expenses. include

including a net our net diluted nominal income million income joint expense, other rate approximately non-GAAP expect X.X interest and of a XX.X%. of company's The contribution from and We and a to GAAP expense be expect assume projections expense per share, venture. tax GAAP for

for shares non-GAAP million rate fully for XX.X GAAP of a and million tax count share Our of non-GAAP. XX.X% XX.X and diluted

the billion. for quarter first XXXX of range $X of to CapEx be expect billion We $X in fiscal the

in non-GAAP XX, X.X giving income revenues least projections XX.X ending and $X.XX of For diluted a share range of for The $X.XX. net income diluted June for at rate of XX.X income the of net tax billion. XXXX, fiscal rate per billion X and XXXX, a for net we GAAP annual per share non-GAAP procurement of company's year net guidance are to GAAP income.

For year count XX we share effects GAAP GAAP The for and approximately are per net XX.X diluted, shares of from shares net and XX.X stock-based XX, fully for non-GAAP outlook of fully for expenses compensation that other per share income share. are and million includes XXXX diluted million million a assuming fiscal tax earnings excluded non-GAAP. expected fiscal

it to will you.. back Nicole, Now, turn

the up open questions. for can you line Operator

Your first comes Chokshi [Operator Nehal question Instructions] with from Capital Northland Markets.

open. is Your line

amazing clearly results. sustainable Amazing on Congratulations share gains story guidance showing here.

gross Let's but expansion, driver Super as first in I talk believe talk margin, prices the versus you heard now great, think is existing of your the prices for delve which this do about gross time I've a into why margin Micro you better is the about can past?

Okay.

said Nehal. you little missed just bit I what of So a

what said was You the question?

about a driver gross of first time you expansion. this heard I guys price is being talk margin I've believe, discipline the

that is understand And so I'd to like now? happening why

you. Got Okay.

time also us finally to rising costs and tailwind XX% costs component -- adjust from adjust freight qX. we And some have properly. so freight in from another costs some to to we we the those it So, and got took then, down coming managed

So to those margin. combined two a things have allowed higher gross us

product very grow have net margin. higher and -- scale margin continue will to scale a when scale our good line building a building we gross Essentially we yes, maintain also and growth, and

large can was segments? the it. bit which quarter -- detail the vertical little of driver a data OEM appliance more and And the you strength in Great. on then, in solutions center edge Got leading give

indeed have AI them including high-end we of Recently indeed most Yes. platform. win handled product a really good of four

AI to and market continue play. platform plug our share So rack-scale gain especially and

a it's so have install most We And are of rack then rack customer complete it cable and power see easier. to run. starting just cable customers and then ready makes much there to job what

So that some really customers. attract

within Was on about side? What there OEM driver the the side? OEM

[indiscernible] indeed product. it's pretty much our standard

Our company highest around standard really for some XX the we customer, world. product top value want

cycle great. down appears what conversion the is Okay, be are cycle And then expectations to cash semi now? your entering for finally, cycle a

reasons. increasing. been our Well, come conversion able secondly, our we for to we've And better. to down inventories profitability one, cash a cycle has expect our manage Nehal, Number been couple of

is So that to wins. of those really QX, that out really, even and of we design got And allowed our inventory. as were and were launch traction to building inventory in start for we design reason the some the us ready getting wins kind

our cash and expect cash flow conversion to cycle improve. we So

Great, congratulations.

Your Baruah question with comes from of Capital. the Loop next line Ananda

Your open. line is

strong congrats taking for that. execution. results solid question. Congrats Thanks. thanks on And very Yes, guys. afternoon, good Hey, and the on

on piggybacking Are other rate? seeing are Kind like I couple to could. if acceleration I accelerated question, guess, last that of key gain? any of guys leaving a things you And are what in there guess of aspects the in seeing the going that's generation? quarters context, revenue leading Nehal's this bigger you is So revenue picture run kinds a I of been the generation guys share to all there Charles, other ongoing it few

ago, Thank the order, were it where total since where, we from do last on and sort chained. gets to make so [indiscernible] and an how to you. of Indeed, play point rack-scale three start plug where people our to the rack-scale years we folks solution,

country deal, more remodeling started top around again especially or start we XX the XX now highest top world. [indiscernible] So

very high-end solution? in or complete convenient solution, So we were if [indiscernible] using comfortable, to more plug total rack-scale win we and the switch, are kind play again, platform of and including including AI storage,

Hey, got it. I it, got

like solutions it and in sounds it So to Both actually what big the provide this share, with like the resonate component you're total continuing sounds able customer that is a solution. marketplace. the it of in total and to really to

use, things like, your opinion to Well, your seen of guys So end it that say, of days? days product, like stronger of backdrop? sounds versus love But marquee It key markets yes, tenor from state demand just I what's last of are And seeing like seems prior accelerate? combined. those would as would you the in of actually the it's the I on and know, shared characterize some parts kind aspects your just XX just areas you've easier acceleration it's particularly gain. you macro kind how the guess I'd to two XX the the actually in

say actually to I we compared enabled including lots may all kinds the learning, continuing cloud heavily matter, I of high volume areas. platform lots around or end, for AI high Yes, that for it's deep like enabled. mean, And -- now company of you really or world, of metaverse, those invest to being would pace AI, enabled have in customer, grow, or doesn't to exactly know, platform rack-scale

especially, lead we times the shorter, two in cluster, well. takes most optimize three us miles a that investment inventory them much appreciate people in customer we of because our ship a and that to attention start industry, maybe really it much to and solution total rack miles scale, customer as three the finish and and to shorter with it So time their the gain save big as shipping, time customers take to

don't I'll Appreciate [indiscernible] Sorry, Charles. Thanks. That's you for great to want now. off. content no, I cut it. see

Your Securities. next question comes CJS from with Jon Tanwanteng

open. Your line is

questions. my hear Can taking for Thanks guys. you Hi, me?

Jon. Yes,

over you high-end The changing a range that about this be do long-term that sustainable Okay, of you And bit? think range, your is year? target gross your the should great. XX%, margins

And target a it's mentioned, to solutions and is Charles it customers. yes, And will reviewing special to them. our And we've come But be is, value these customers the as a have answer our high design The value. sustainable. solutions very of they're and levels. really, lot we industry new us, to we've for had

-- so the up price say we've are higher solutions. we've solutions. to enough being I to of And those ramp secure of we for discipline, and when And some realized, start good fortune had to of value able our supply

great news. That's assumptions, Thanks. And maybe risk? pressures all? any, And your then, at or customers along indications regarding that are being do of you go any macroeconomic your with see if geopolitical by recessionary impacted what guidance in

depends. It

customer, them customers, other Some a AI saw technology, or I increase platform way, indeed, by to for but the their products. future demand, coming for there And, slow high-end down, mean, those lot continue especially of for new we not quarter-out-quarter out month-after-month.

demand So this growing. but ADP, our down should believe slow moment, macro our continue we at may economy at

more that at the that for midpoint? Okay, seasonality seeing? you that supply? great. your that this or is of are more the decline just macro maybe gave it Is quarter guidance the some sequential slowdown And customers maybe of next of Or indication

chain chain. Two reasons, constraints. is still facing We some one supply supply

have shortage lots parts last past than before that's of thing. been Some one year available more year, in

our be September quarter Second slow to thing, season. used our in

we both and So be to more conservative. that's reason, tried why

up XX current have XX current about think And your to probably you I in capacity. understood. guys it need investing pretty one to rate, last growth billion in have you billion but you know just thinking facilities, if about when new at Okay, to may, your to soon. start I do

to get I just if if might investing And you So need do your was start you are, to wondering so? need where plans what you there.

really that, [indiscernible] are to still we some because mean. strong pretty very global we other some in market yet, in countries, we countries, addition but In are territory,

where and more to power away with ready. We our far So assumption we replicated haven't higher then and we warehouse, more making are more are we, a has how need customer achieve as the just more product premium grow market already far much can end productive we scale. production, a been to from as able And product. is countries solution

Thanks, a congrats guys. again, on And Okay, great. quarter. fantastic

[Operator with Ananda Capital. Instructions] Baruah Loop comes next from question Your

line Your is open.

there Oh, the that meaningful God. to appreciate Thanks, just guys it. remarks, be little Or of any mix talked other you I should that to dynamic. that is a resonating dynamic? love primarily of and like in Charles his aware we are context components of on about is mix I the mix increasingly? Are solution. that more get the aspects it it guys. a contributing total you solutions sounds total

Very and good plug years prepare, rack-scale play that's three why to Indeed, start ago. we question. about

finally took a April it positive in those it And a continued continue gain moment, So I this pretty or networking us we communication start the acquired to win. and single every more design in especially facility growth customer, gain components make design will -- our people or ad lot wins to of areas. feel more to I device. believe street at train those ready,

across targeted just more to scales at awesome. the has That's all those they'll you Do are a scale tend any rack or really verticals that think resonate of your place? with sort verticals? that go rack or And particular or there into more, real

at omniverse the AI, high gaming, beginning, and application. learning, end people automation, metaverse, scientific

a it So even lack is local also of company, strong demand. of area, some kind having forecasting

helpful context super always. That's as

to here. guess, last I quick me ones just Just, let two up

grew probably last over backlog constraints. comment Is XX the around given like again, your the that accurate? Sounds days,

demand. our we image are here that a that's can so Yes, growth [indiscernible]. is Basically, And we continual inventory, support our why in because, healthy. they keep pretty not

some have but volume under are they high We inventory, strong demand.

about So like, at worry this inventory I moment, level. don't

level Charles, guys. me, utilization just would for one on an there you characterize last the Taiwan? then And Is update Great. now? How

always supply nine It’s months, that growing suffering in already. faster. chain But we shortage

moment, continue So the I reckon Taiwan happen, in Taiwan, the be believe better. improved. about And that rate get I so. only once supply or hope can I At evaluation XX% to chain our much will

XXX so to where what expected, contribution And utilization. to guys that are right is Dave? a a normalized of of get you before of top gross Does [indiscernible] XX utilization, Dave, when it's sort now? mean on -- margin Dave, like was which guys you say still it let's sort XX%

said From Yes, We right. their shipments. from Taiwan. that's XXX XXX to

from So XXX XXX not XXX. to XXX Taiwan to

So overall XXX XXX the P&L, to XXX to it's not to it's XXX...

That's correct. Yes.

Got you.

Taiwan to point. volume Now approaching is going some year at half be

long-term XXX points of overall would to So that be P&L. the basis sort to XX

way at That's looking of a it. fair

awesome. Okay, guys. it. you, Thank Appreciate

further call. no time. at are conclude for this conference you This does questions today's joining. There Thank

You now disconnect. may