SiTime (SITM) 1 Feb 232022 Q4 Earnings call transcript

Good afternoon, and welcome to SiTime's Fourth Quarter 2022 Financial Results Conference Call. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions] As a reminder, the conference call is being recorded today, Wednesday, February 1, 2023.

I would now like to turn the call over to Brett Perry of Shelton Group Investor Relations.

begin. may You

Officer. welcome conference and Rajesh fourth XXXX Chief quarter Chief Good On to today's results Financial Chadwick, Art call. Officer are call financial Executive afternoon and SiTime's from Vashist, SiTime

during of Before we begin, expected make of the would plans, like future may market discussion. results, call, company other statements position, timing the strategy, future out the and to this forward-looking course point I that areas regarding including and financial operations,

the company's can a for to statements. to contained predict the It of actual nor possible is factor on combination extent management all risks, may those cause in or results the impact any or not factors which any the assess to forward-looking company of from its differ all factors business materially

and those these could actual or and assumptions, forward-looking of not call from events results this light risks, adversely discussed anticipated may and the during In occur implied. differ materially uncertainties,

completeness the to nor company publicly any the call and or reason obligation statements no company update the statements Neither forward-looking at expectations. responsibility forward-looking to company's of these actual for to person for statements. to date in this undertakes any results The accuracy of changes the assumes conform the

the with subsequent For the risk as refer factors XXXX, filings more XX-K XX, the described with SEC. filed risks detailed company's information you on well associated as in we the business, to the on February

of GAAP. to, with prepared company's refer These and call, addition performance substitute certain be which the accordance during financial are we’ll important consider to in U.S. to or an superior a measures as provided non-GAAP the performance. of course measures for, of Also, to financial we not non-GAAP financial in measure measures,

and the GAAP only GAAP press compensation results detailed company's financial Please and release to refer expense results. and The reconciliation stock-based today between issued related non-GAAP a payroll taxes. for between is difference non-GAAP

ahead. please now SiTime's over pleasure CEO. turn go call to to With that, the my it’s Rajesh,

Good afternoon. Brett. you, Thank

First, to leader as earnings well as applications automated is In category you investors to is created I'd a a driving, timing like systems. and needs in new IoT. Timing. existing ensures of XXXX product QX of the electronics, timing SiTime service like precision and Precision ubiquitous SiTime’s dynamic to reliable XG, functioning enterprise welcome SiTime call. called

We early precision $XX billion timing we growth in timing SiTime a customers applications. are has XX,XXX in as to billion X transform XXX chips market. shipped the

had though the a was year, is of $XXX.X was We ’XX and million for the fourth and the even revenue. income quarter was $XX.X is which This solid revenue was $XX.X previous million half quarter million. year second of the for over the $XX.X growth XX% Revenue for quarter. Non-GAAP XXXX for million XX% a challenging.

introduced indicators On ASPs Previously, source and earnings had as the product future SiTime four last we the key new revenue, metrics single call. business. expansion, SAM of performance since side, products introduced four design wins,

While this on ongoing we business don't these time. our the giving market insight given using by into expect we're to conditions, this current an metrics further basis, do

four more in market products, we five our introduce and advantages. call, Since a to expand new we track last SiTime to continue on earnings where We're billion. billion. XXXX, we of $X by end grew get billion In timing highly In precision a the was $X With to track on SAM XXXX, $X differentiated our to it to is creating are introduced XXXX. our products XXXX.

and Aerospace for and sampling, Seven activity Defense. new robust. to architectural Enterprise, in Automotive segments, our includes be products these nine products, discussions which focus Comms nine continues Customer these of are

that operate synchronization crucial tactical navigation times to Both network resilience, environmental XX applications and new is timing, communications, two families harsh introduced up that as service we and the in presence expand week, in in Endura environments. applications such which product our aerospace products market better PNT, surveillance. Last defense deliver for these position,

the Our continue in design wins quarters. In XX% grow funnel higher QX than ‘XX. over previous a at in grew ‘XX, our and period design same wins to rates

Additionally, aerospace defense. of in XX% these design and enterprise, of automotive wins segments our were focus comms

prices average of the to customers. selling indication we or are that ASPs value provide an Higher

Our ASPs to in grow in continue expected to be and higher ‘XX. are than ‘XX

times meaningful As this and in We our of are past availability seeing not years, the we few competitors attribute their has of differentiated even nature highly the to increased any to business loss though shortened. products. lead have

a to tremendous importance is trust continue that customer of of earned has business ‘XX, a we of SiTime sourced. XX% as have The and expect sourced. to metric is single our that to that of business single is us percentage In

similar out, our and further market Looking geographies across single funnel a position is source in segments.

our Now QX for to guidance ‘XX. coming

shortages past earlier, contract they customers of the and more and quarters than purchase to is As we continuously at manufacturers SiTime few their contract manufacturers. evaluating situation needed. customers that XXX the their said our XX inventory top than more

informed new recently is development have that previously While largest inventory the our most their is than a as customer earlier, more historically that we customers’ subcontractors us thought. at they inventory forecasted

expected, the lead of QX revenue ‘XX in the business to being than lower will Despite this rest as previously thought.

in QX believe year will of second be XXXX lowest the as quarter we than half. be and expect growth to to the the to continue QX the higher resume QX We

healthy. be customer demand generally continues In end conclusion, to

grow. Our and expansion to SAM design wins continues

SiTime and timing, continues with precision is in closed customers the confident that success. Art? category are to future growing we our design a about leader we be connections wins. Our through and created

non-GAAP I'll comments year. XXXX everyone. you Today, provide our full-year for on XXXX a I'll discuss to Rajesh, of results. I'll GAAP focus release of good and and Thanks, Great. the the reconciliation of GAAP results press make description non-GAAP detailed fourth quarter first financial quarter guidance results, results, and as afternoon, and for to today's a discussion as well and refer on my some

million segment customer, full-year in was million is segment our of XX% XX% and Sales the $XXX.X $XX.X a $XX.X was sales. into quarter million fourth the were up included revenue were or and XX% in record IoT this total $XX.X XXXX. which million, our of or Revenue for sales. Sales over largest to mobile, XXXX consumer

million this into our sales. Excluding million XX% to and our million customer, XX% or XX% into sales. communications $XX.X our $XX.X of enterprise sales segment or of $X.X Sales Aerospace Industrial, largest sales were Sales segment and were sales. were or of Automotive segment into

Non-GAAP SG&A. essentially XX.X%. R&D gross quarter Expenses million about held were $XX.X XX.X%, for margins down margins were X the lower QX, operating from the $XX.X with the gross points were million Non-GAAP expenses we and million in QX. were revenue. as spendings flat $XX.X to full-year in due for Non-GAAP

income the from the to prior for up was $XX.X the share. million $XX.X yields. higher Non-GAAP $X substantially quarters, per million, XX.X% XX.X% for net was or Non-GAAP for the or investment million income for was were Non-GAAP due share. operating quarter and margins per year. $X.XX year quarter income $X.XX net Interest

DSOs million up chain end receivable was million, of Accounts to million the we in as safety from DSOs supply XX to at $XX.X and QX million end future with compared wafer the of or stock, bought the of of other quarter provide XX $XX.X in geopolitical any were days, the at issues. QX. additional $XX.X at cushion the the Inventory days event a of $XX.X quarter of end

essentially million million quarter. ended purchases $X million cash generated with in in cash, with $XXX and quarter invested short-term flat the cash capital we the equivalents in quarter, the prior from investments, During operations, $X and

some XXXX. quarter especially macro is on rates inventory provide having guidance This when with subcontract what now like challenging remains that reduce higher order many and first eased now. coupled bottlenecks environment supply excess demand. many The year. an is demand current through industry-wide manufacturers experiencing and last overordered inventory. financial they we clearly also led appears as are somewhat work to environment for their impact that semiconductor has customers of to And I'd it the It customers the

we from revenue be quarter, and on of QX Last XXXX reasons. said comments QX sequentially for offered down would that two

customer. the expected expected inventory. usual second, markets we our and enterprise customers with our slowdown through we seasonal work in largest in excess comms those lull sales a as First, And

largest with the last customer. consistent has Our view we to QX remains our exception comments and made on do that with quarter with one

be their our now customer to likely their This be have appears year. mentioned, enough manufacturers nominal As Rajesh and through needs subcontract not customer. clear, largest with of work inventory we it this levels Therefore, through sales both To starting the will in have means to QX. that this lost sales once should QX. the normal first-half more support any sockets they in inventory QX that to rebound

now a few plus we expect will and to or revenue result, the due a be and $XX lower points As minus XX% will $XX down between sales a be Gross somewhere point. million. million approximately be QX margins will

approximately $X million. XX will increase with $XX million approximately to Diluted $X.X count operating shares. will share be million. between and flat expenses so We relatively QX, Interest will million income hold somewhere

be So net approximately therefore at believe that midpoint of QX will breakeven. we non-GAAP the guidance, income

will We and will also revenue should low be the excess QX increase the That sales believe year. that in second in worked rebound year. for half down, gets QX that inventory the of nicely quarter once the

firmly I'd growth saying we are is our going by though story that through my even dip, that short-term like to believe conclude remarks intact. this we long-term

five expanding Our process product year quote to and about product expand coupled strong $X with product about SAM This billion products. families more expect been and with of spawning and activity from we this $X an introduce to planned; new a by new each that billion will at derivative growth. SAM long-term to numerous should lead continued our as Design least end ago developments introductions win the year continue XXXX. and has

to operator back on like that note, Thank Q&A. And the to hand you. call I'd the for

the with and first Instructions] from question Company. Thank line you. Bolton Our [Operator of comes Quinn Needham

line Your open. is

going think or think the consumption ramp and of the the at look on to fairly natural start start correction year, year? a in sense keep like so Hey might your of wanted of of what have Obviously, back half just like consumption, we inventory you do the we is level results running that the to half it in but I basis, quarterly wondering as Rajesh. snap I you some to demand if is to revenue comment products environment. the might the where that Art do depressed today first sounds what guess, you second with

Clearly a the Yes, gave that's quantify higher that the demand that is question, than It's to precisely. for QX. substantially great guide Quinn. we difficult

in inventory lot excess talked the As a and channel. about, is both there I of Rajesh

you lot are shortages and As think supply those customers folks, I and discussion, a there eased, and the I the manufacturers in mentioned a my go their advantage XXXX of a shortages subcontract back our lot of lot ordered. to took of over of in when industry and certainly

worked ended much has they too down. get that inventory up So to with

a substantially we revenue, I QX our to suppressing that I'm put say will on So QX. going and that number also would do is in But clearly not in it. certainly

numbers, historic year, we there's mean, XXXX our some at look and just you I for buying if million in think, in I over did $XXX the that.

I be think the that's half down, notch to first for number if clearly year. normalized a in But XXXX. of the you that going

think I dip. our growth we is term, longer And this intact rate through XX% get once

half what XXXX people definitely rate. what So can look should of of that look I triangulate and kind the should growth think kind given like back like

I add you So some didn't what color there. to I to give try numbers But earlier. know any said we

right? to million it be that that it ballpark and to in to could $XXX just frame It rate obviously run so $XX about, sounds the inventory $XXX trying $XXX is XXXX, closer maybe So million of million, like amount million million like sound to might included like sounds it a burn. $XX some sounds it, be

I would logic to I there not to think that founded. is an don't the down get number. number, dispute exact but I want tied

the just gross Great. troughing in the that think then followed would the the QX, a grows trended sequentially you or have I for And follow-up a margin revenue margins trend of guide that first through as to quarter quick that be that just the revenue. sort XX% the trough as higher? assume is would of also that since year and you rest expect revenue for year historically

ops depreciation absolutely. of manufacturing we the Yes, on group we that's back-end call what our and before. cost the located this of amount have fixed that And we've do OSATs. equipment a I fabulous, as some certain Even though we're overhead at our talked own about some of

XX% lower, XX% in announced the sorry, to and -- is to XX% that's is QX. There the revenue rate I'm was about -- QX. guide points and that down just So of what change lower and margins down my we so from to that's XX margin, lower quarter QX, in in absorption gross drove when and the down

to our year So historic exit the margins close the as your would direct gross is able with that And XXXX. margins will exiting margins gross can we full-year think to margins gross ended. we over increases. had to be answer question non-GAAP I expect that level yes, we XX% margins increase again, gross to get I just back revenue just should over the we -- year just for this that

you Art. color, Thank additional the Perfect. for

stand Thank for you. by question. our Please next

next comes the line question Suisse. of from Credit Our Caso with Chris

open. is line Your

afternoon. good Yes,

revenue your around for additional based imply provided the seems guess the guidance both main segments. color could first you kind in Any on I decline for it aero, expectation? a So And the Is question, seasonal of sort consumer flattish of what just that like part give if seems auto, in enterprise. you I -- on guidance, some mean, of, industrial the to color of customer. can provide that's I then outside reasonable that? kind you

Yes.

substantially Again, for largest customers that that inventory QX get segment quarter. pretty I that's in them enough good have I lower be plural reasons through think our that's the from mentioned that will comms and and QX enterprise first to the is a to analysis.

rates order their relatively low So for are QX.

So comms the would in biggest and enterprise. decline be

In be down in to customer And QX. largest less customer will very our total, them then QX. going million it be $XX.X our be excluding in segment, Revenue and that's will mentioned be and to in quite our consumer was than and our of from flattish, flattish, auto course will as million I space but think largest means I $X QX Nominal nominal. to substantially. QX IoT industrial

Okay. That's clear. Thank you.

of about But you that your you risk products and see between more more follow-up, of of are the product quartz knowing right the decline the sourced conventional the kind seeing see and/or SiTime’s are gap just pricing if are remainder pricing of your to the are majority speak and as could a what performance. customers large Is it What you widened there that number, made products market for some that and in clear the you vast As sole the some pricings products for telling pressure? do the buying in that pricing. the conventional you a point now? customers those

no comparable other significant Right. see and no are providing business. our this, That's and SiTime’s pricing, On military true on lower let's no that it products our have The in is product. there clearly of significant also competition, quest aerospace that of but products one. would comms auto see clearly some unique I enterprise way we just understand in I the part that in say of customers value. because for focus some products, this our we see how in are in

products that do means Chris, recall, industrial, of telecommunications. typically in premium in consumer, product, a end way in able higher volume, That growth maybe continues end to -- impact doesn't that last blended networking price. our pin the we for including of the for compatible, a in also we sell particular lower that quarters. some extent it which that in pressure. that customer are those have And us. don't at it higher for pin we we to adjust any that pricing in several there, the to On our we lead to customer's see even And Even pricing, means still markets, perhaps in sell the largest been

whether products, focus markets. primarily highly non-focus SiTime is So confident that in a of in our they differentiated position, a because or markets the in I'm good very are

Got it. Thank you.

Yes.

Thank our question. for you. standby Please next

question from Vecchi William the next line Alessandra Our comes with of Blair.

open. is line Your

Hi, question. taking my thanks for

plus? about about to two the we they've next look revenue that Just the be more color Or much last like customer. on that in future? we the year some kind like XXXX, rates can thinking building Should largest you for do take point of really inventory normalized quarters at think out they be for some levels timeframe? over XXXX customer been additional get your that XXXX thinking to in Should the back

Yes.

more Clearly, customer with haven't And overbought But they're a precisely any of work I they there. XXXX think levels. to sockets back closely can or subcontractors overbought. We ours. their they them. lost very get great we

types get back I those So we to numbers. can of yes, think

CMs there's a -- of well. in from had host the else, we've I been generally think, And decline Alex, them. in general, they But is I they in they probably on think they very have to more that. complex, it for we that a -- in figure natural It's methods as between them, discussions took have to some them but anybody CMs. forecasting than news out, their demand. it and any the some a while changed forward did. And And it look whole

a But to as talking like of, increased just to, the more quarter, similarly, Perfect. QX? then would believe sequentially on about segment over bleed we've normalized go but maybe back be revenue, customers That's you harp in allowed on to I consumer of, trying fourth looks to And portion in had sort flattish think consumer the time in it non-apple out about said the court. general, was being not helpful. it level. and I sort conversations

Can what terms about should in their stay or we over appetite to customers how on two? the to back you color courts that you? go next with you're year add from think And seeing some of versus

In differentiated when -- tend wherever our they have Yes. see said have products, we as customers to I earlier, that they use general, SiTime.

if consequence of of little, de as very the any, loss of business found crystal. have availability we increased so quartz And almost minimis a

continue nice us think our that business half second And So largest consumer year, of help customer our fact, wins that solidly. in that the will quite I well, to the some we design in we with ex continues as believe. get

another I'll And Alex, add that. to just comment

going as where are we value. not but time, in the to over real still declining segment provide mentioned, customers that space about Rajesh zero. talked consumer have We There

in was fourth as it to up script, go a numbers So million from $X million we're what mentioned not those $X.X was I maybe expecting my $X.X quarter, that And zero. to QX. in million

rate I over So if us up. think I that run right there. reasonable customers And time, the that's have mean could even for a we go

helpful. That's Thank Great. you. very

question. our standby Thank you. Please for next

the ROTH. comes Our Desilva line next question of from with Suji

open. is line Your

mid-XXs I Hi, or if Art. going that and blended Appreciate, year want from to understand has steady Rajesh. pricing margin pricing assumption end Hi, assumption gross I of towards market Art an imply to there. or guidance the -- improved the if confidence the there's to end is the that mix uplifts? product back been imagine

that I we got of and high-XXs our margins gross that the full-year mean, that higher segments Is products and performance XX% we markets, our generally on one expand just focused most ago the gross of years one finished. public Rajesh of are basic we the are get ways three that new mentioned, to themes higher which for margins. market Well, to the from ASPs went our higher when we

that So become this see number out we'll think percentage our help I a over and continue for will And time, certainly years. those sales, of of of going as some to products year new our in expand a gross half of back the larger margins. that

think the That's of I Suji gave are metrics that we some right. the confidence, And related. all

that see to coming the and benefit come But real have. is why the the in ASP's SAM related They're XXXX related XXXX of benefit a strategy. differentiated and on. highly going four all just short-term we Our got I it's our that in relatively together, is products is it's to to in course, tied growth of one expansion. our It's so new stickiness that source. products and quarters. And growth to solidity customers related of in and all think, Deliver part which for single to and the

will as I we products get good. unfold, in as it think products, design they really I we marketplace So be about the think nine those the wins, as talked

as announced non-consumer when to see question ramps? the is cycle these then Okay, to of elbow start in of ramp? through presume is programs new sort those they're that and them more we coming markets, products data those design center. them focused they're products auto, some my in great. infrastructure were And an late ‘XX point in I come there And design win new and winning. the follow-up What's there on

Yes.

seven our be in automotive, actually or of thumb So aerospace That said, sometimes ramp rushed XX-months it's to we say to a thing enough that a revenue. the than that year it IoT meant balance comms to being -- desire of nine of shorter rule fact ever don't be less get out enterprise, are mobile. remaining we by than products time that to defense, typical for these thought. while Also of would those consumer, the segments, would they markets about let's see quicker and revenue a And for less say, the products in win, are than to design in year. these shorter two for a out forget focus a fact and

to from a time years have And think a ago, for its I our still none continue to that we ever areas. XX-years So the in so three they product takes the again, get of been But focus to glory, reminder XX-years full it obsolete products ago, sell. them maybe introduced

So that's of an the important way value. understanding

helpful, Thanks Rajesh. Very guys.

forward, again, but last year going this looks products, products XXXX Yes. these And we to and in back and introduced a XXXX. lot of also new

of of even a the though have cycles one, yes. two in number cycles, So or these design that years, those can we are products three middle be of design some

Okay, great.

Thanks good. guys. Sounds

next Instructions] Our of the with comes Svanberg from Tore line [Operator Thank you. question Stifel.

Your open. line is

wondering Art. Yes. Especially too. the build front reduction, if more do has think purely of building manufacturing I'm or the when short? mean, to you, largest around. you base and Thank this of tumor domain the is And some manufacturers inventory about I supply supply far anything just in were of as of this moving subsequent diversification Thank sort had I think your question the I public Rajesh. customer. just as then manufacturing you, a is this

else, tricky think things to CMs too it's talk and they anybody want I ask some have But about much. do to there question Yes, are than don't a we point that's more one.

reasons. in that a CMs The tough we is all second of for that many times, variety over understand order point CMs,

of largest not good the case ones. past have and forecast time largest, lot to it in a comparing them at historically the years so we CMs. In spent some customer, Some directly the of looking forecast our from ones, good from

that ways, can real in somewhat parties what understand was. we in some helping situation almost say were instrumental all You the

player of So SiTime value-add all in has this. been a

perspective, my follow-up, great that's Yes, as your Rajesh. inventories. And

wafer again, largest be nominal is $XX two us in customer So just most off that the mentioned that to of again, of raw it should your inventory? going be just your basically about given Can million next should half in we some -- sales $XX in in how that You quarters. to the think million in or So wondering materials? year? the drop given you the this big give confidence first

Yes.

So quarter. our from times, all, talked last any many of can Bosch the wafers and we've to $XX.X end is and wafers from all have we you about a there's stock, in at first issues number of inventory, million sales. a TSMC. buffer we type of our we increased factory. get of the If did it our that wafer of increase mentioned stock get out so there's bought provide both with type And wafers of wafer quarters any worth supply Bosch, our if from geopolitical process we TSMC issues chain support stock. we there, And there, as CMOS MEMS out it’s we And consciously as their

years and the that And for They're not remember, These sit obsolete. sit long. do go on they on years to for if shelf going do can bad, and needed. years not the wafers go shelf not

over it to the start of next will down couple quarters. work We

comfort if any during So many customers quite you with to to the type us, are comfort. of And for gives would supply for And cannot of with go this mentioned, a of certain gives us them. they down a out not to afford a expect the chain of being it lot the so be course bad. ship reasons there do customers come issues that to extent, sourced to single I our able honestly, that wafers something our but not there just year lot us of

Right.

deliberately underline obsoleted three said. our some with reason wanted go this in I what and none Art more of company reasons. bad." to our that's comfortable we out, one. history as very been and we've two, wafers One the have yes, somewhat So, on done pointed is, "don't inventory I'm products of the for

is markets, of second our business safe The is enterprise, automotive comms are it's single in that XX% into and reassure to pair defense they the important of customers we source for and our as hands. head aerospace us

to that our SiTime real that, think we as proposition, our in third to opportunistic well. that will for a second defensive or the saying offensive. curve, snapback of a is more half. a whether gives first to the We with that back and to -- capitalize programmability expect think it that The knows to made able snapback to is a makes more case value for half, a just made great big big that position not be. sense Nobody and I'm in be to demand this than the be be less definitely if on there's it I'm speculating that with it reason but it half be year it is, right? I be it be for

Very much. so you helpful. Thank

Thanks, Tore.

standby for Please our question. you. Thank next

of comes from with Our the next question line Fabricated Doug O'Laughlin Knowledge.

open. is line Your

will Rajesh. I Hey, don't was Art. just demand. I the full like. just for wondering Hey, we looks half the shipping you the know what mean XXXX, run second be below rate

possibility a that the inventory? have there's entirety be a if And of wondering was the follow-up. moving the I down you'll Now then I year,

Yes.

customers to work some their because clearly below right, will end inventory. of through our demand, be we shipping So have

we end up higher. have shipping been So the whatever demand end will

inventory. if So know your with I has don't do that's question to it or our if

Okay.

trying from trying pretty get to side, ask essentially on essentially but forecast. hard and right no if trying the for there really Like is get customer to in was could amount, of QX more at better to QX what zero a the to understand half, I example, trajectory just was just I just largest your some -- that's right? other like some but I QX, So now, to QX, I'm to shape. like goes point look second way know the

ask So could another I question…

inventory. Let me Yes, to come going we that disappears customer disappear in that One, provide the half back to business year. consume the of sales traditionally -- first has the in in half. second strongest is half have on our will for our always to second customer the back comment situation largest this that in been two That some they're half, piece with reasons. that. And back believe of the the this

go first back we years, to year. that at of the more and the -- half half is lot back a you in If look of than them the year preceding ship the

sales customer I the believe will come So strongly that of firmly in relatively to half the back that year. back our

on Okay. win guys the the design is -- that's talked over, there there application then much way Perfect. about some in or you track of see prepared a you XXX to do the remarks. expansion? applications And how Is say, kind side, XXXX? expanded And ‘XX

design the metric. -- I that number a it the track it's went say of of than But have we applications. we as don't We secondary public, the we've to time one It's from rather in particular our that gone about particular applications. wins safe metrics. we track think primary What segments in doubled

applications sub-XXX from So to continue probably other every applications, XXX we've really. gone add and in we to words, month,

that again? with tail? going design are these that current the Or is a that of being more kind forward just a sense? going of if double like applications of get trying just be Like think wins and any do makes sold similar group number like able it you'll from design wins, magnitude to more, be you I'm to into And Okay. of to the longer

And so a our funnel solidly been our as here, source, new to it's been adding funnel that's year-on-year. products, we've been as every around continues, is right? surprise no lot. stronger long particularly around very Our grow marketing our and growing that single we've given very and our on. we've products. continues Right. around growth Like funnel markets, strong, differentiated particularly that year very, focus higher particularly been

give will quite will But whether grow, think that that double, think I we the precision. but I couldn't naturally. they I wins they design follow and say you of level couldn't that

And those products lot. is SAM how calculate looking we our will to it at So about our different and Doug, a applications applications. we way different talk apply that to another think about by SAM the

$X billion Our ago. year SAM was a

the call, that billion. And as the it's recently, now. to applications. lot it new that are new essentially by comes Rajesh SAM going about mentioned $X of XXXX, billion from expansion a we goes on Just And products of think end $X we into think

Alright, perfect. Thanks guys.

Thank management you. now would like questions I the remarks. over I'm no the showing for to further call turn back closing to queue. in

but feel helped the the like largest say I in well situation our customer's said, comfortable. get I our not liking, just understand in I'd some to revenue as to Yes. is that because, we it. we very decline very Obviously, clarification

So we have good insight into that.

by quite are the the mentioned of our that in well. confident on business. the business of continues also rest the business, year, Ex to as second Art of We half growth their do

We up. ramp is, continue start that we to get the that starts QX it QX, to QX to fact, in back and believe -- in and QX, bottom the

is? ASPs though, feel views We're of on now, Clearly, our that just ramp what but we that strong the for unfolds. as grow. that, level where watching me very know watching and let of we'll this, about in have carefully. to we're makes the all continue place you good We it is What are obviously

single-source XX%. continues position to at Our be

funnel grow. to Our continues

Our we out time. the with products the bring are are in given of them to able on complexity, and customers. even right -- our connect And spite

in very So we'd further the as quarter. you all information much. all, in think go Thank love give we're a to more in you great and I shape, we

Great. Thank you everybody.

and conference concludes this call. Thank your Ladies today's participation. for gentlemen, you

disconnect. You now may