Broadcom (AVGO) 4 Jun 212021 Q2 Earnings call transcript

Welcome to Broadcom Inc.'s Second Quarter Fiscal Year 2021 Financial Results Conference Call. At this time, for opening remarks and introductions, I'd like to turn the call over to Ji Yoo, Director of Investor Relations of Broadcom Inc. Please go ahead.

Thank you, operator, and good afternoon, everyone.

Joining me on today's call are Hock Tan, President and CEO; Kirsten Spears, Chief Financial Officer; Tom Krause, President, Infrastructure Software Group; and Charlie Kawwas, Chief Operating Officer. press our financial second financial fiscal XXXX. a market after quarter distributed year describing closed, performance also release tables and the of Broadcom for the

Investors the receive Web telephone Broadcom's at playback of available It and broadcom.com. section is week. you If a section call site a will conference for archived webcast did the Investors one site not may you in Web also via obtain at being information This recording from of be the copy, our be live, will broadcom.com.

and prepared comments, results, will the quarter, of regarding During details our environment. our for quarter Hock as XXXX Kirsten year business be commentary as the fiscal providing well third second guidance

refer with materially press recent forward-looking could to and on our We factors SEC specific results the today to our differ from of will take questions Please the release filings after information our actual that end this risk the on for cause call. the made comments. our statements prepared

In non-GAAP GAAP reporting, now GAAP certain made call refer basis. is a release. reports addition attached today's to on the included to our I'll press will A between measures non-GAAP over today's to and to Hock. Comments U.S. the financial financial non-GAAP tables reconciliation results. during measures in turn primarily Broadcom call

revenue grew Ji, net up XX% expected Thank an consolidated revenue to $X.X you, XX% billion, strong today. $X.X infrastructure growing solutions everyone to and semiconductor year-on-year software thank billion, In was you, for joining year-on-year. X% QX us revenue billion, $X.X year-on-year with

experiencing lead and now from we are only have just bookings and a seasonally. of times continues supply networking call sustaining, now our side, from to do enterprise. wireless networking bookings In not earnings of but we stabilized, And we QX, today volume grow. on the the and recovery broadband were see service last we was about hypercloud as talked strong the see on broadband declining how Now providers, past even bookings

we maintain is identifying and With XX% demand of Starting Revenue enough of you which doing through in we and our to Now, going end let as that backlog, delivering a provide accordingly. intend me real demand year-on-year and revenue. process so broadband, discipline with reviewing our color. more interestingly XX% somewhat user meet renaissance. context, such of carefully represented products grew semiconductor

cable today. XX% home our an over during existing X.X driving the as discussed only global the the generation fiber upgrade next as known to As room we X.X. by connectivity DOCSIS teaching, with providers significant X.XG, years. carrier PON U.S. fiber, business, PON over Not cable otherwise the are growth learn and environment broadband be generation to the XX% to service from driving deploys mostly work, XXG home. for In next PON deployments XX% play XXG or year-on-year growth to content and year-on-year, broadband outdone in but to few our next DOCSIS There operators with expand access saw grew planning is PON, modems, is accelerate representing generation

service consumers. providers XG to experience enabling best to deliver fact they broadband Our for complement are technologies, in the delivered

of into overlaying of broadband the in mile shipped for search homes. connectivity growth revenue leader or XE a in and as technology gateways a last enterprises, parts for alone, over technology market XX%. Wi-Fi Now QX home all latest and million the clear XX access Wi-Fi has with the to this to some the upgrades, year-on-year Broadcom we XXX last see emerged X demand enable feet in

to year-on-year, line On and broadband the events as DSL, of the in the during technology service with connectivity. pandemic, broadband declined expect, onset declined fiber, But XXXX. and We're into subscribers, seeing cable a lack XG saw in investment copper leading upgrades with might performance this a subscriber extending the are wireline cycle globally video deployments XX% other push for of XX%. with we live hand, providers higher fiber, into Wi-Fi for competing digital

digit sustain QX, year-on-year growth revenue for expect double in so And segment. this we to

to infrastructure of ramp experienced our the XX% worldwide, primarily Moving Tomahawk by grew service for networking, X hypercloud centers. investing in year-on-year. offset robust revenue. XX% data hypercloud XX% platforms year-on-year with Trident core XX% been up demand and revenue telcos, the have headwinds from our and and the networking from the tailwind XXXG Jericho Qumran and have X metro for by on was network, represented been at We switching up enterprise. where In and for over Revenue partially driven semiconductor the strong at year-on-year, edge of providers XG

we in has upgrading networking we digits as the of service down QX, of for in to Tomahawk networking growth and Trident providers the demand hypercloud demand. a digit And year And yet network into hand, found a recovery generation the we enterprise go from of to recovered, platforms double X double back-half complete year, accordingly we in expect see still not the XXXG maintain routing. by over sustained low expect On other year-on-year, trend to enterprise next revenue strength the ago. switching

This guidance, let's market driven year-on-year. by line down of in revenue enterprise, and storage Speaking our was approximately with XX% represented connectivity, XX% service is about of revenue. enterprise which end talk semiconductor largely

economy QX, an in as And to however, trajectory. starts this have demand was improving recall, the down we XX%. recover, may seen You

single storage percentage revenue be And digit down expect service connectivity so QX, to in year-on-year. we high

the July us, and on we And next our server Lake during [ph] as teaching in in both is innovative obviously With our arm-based of space business. in Ice future well storage the provide more as color software. will quite servers, and this Intel's this launch for hardware Milan turning exciting

Nonetheless, wireless, expect on And ship QX to a wireless XX% revenue we favorable well a able the with but at very up as planned. training compare seasonality to year-over-year sequentially, more sustain, as Wi-Fi. reflecting XX% over of XX% Moving down road to were than wireless content revenue on we had In and we originally FBAR year-on-year. was was QX, increases revenue in means. representing in XX% semiconductor QX, revenue year-on-year, wireless basis, reflecting accordingly

represented other approximately we and by Inventory in what semiconductor China. in and QX QX, XX%. grew Resales solutions revenue. in automotive to XX% year-over-year channel the recovering deplete distributors grew industrial of as in the driven shipped Finally, continues X% only

Turning growth to QX, of digit QX expect to in Summary, grow to up a segment and was XX% year-on-year, continue double similar to percentage we amount. expect a we be resales basis. revenue year-over-year QX, year-on-year semiconductor on solutions

results, infrastructure Turning and grew XX% X% to QX revenue represented year-on-year total revenue. software produced software, quarter in predictable and of as steady another of

our and software of X%, grew and year-over-year, sustainability from over enterprise revenue quality three bookings of and our contract we an products, as indicator actually of with further average years. represented if services, XX% maintenance pretty subscription to lifespan Now, core professional customers much recurring software the exclude close our

to at demand business QX. to see robust percentage so track grow is is to continues we and better which net our expect year-over-year, believe continue consolidated our software Summarizing to mid-single on than year-over-year. XX% infrastructure grew a digit this, be in We again, what revenue QX

the billion With and in that, momentum be let now call Kirsten. We turn total over $X.XX at sustain to to up year-on-year. to or revenue QX XX% expect me the

Thank you, Hock.

in a basis XX% the depreciation. $X.X was approximately lower in a from of Adjusted This basis quarter and our XXX EBITDA in of the or billion margins R&D. year-on-year, by was Operating of on increased the provide XX% billion detail year-on-year. offset were billion of was now points figure XXX $X.X Revenue part investment $X.X margin performance. expenses Operating Gross points additional was up Operating year XX% for up driven financial me quarter, billion up million revenue record approximately XX% were $XXX was up $X down year XX% from by for quarter, Let income ago. revenue. excludes X% and revenue, year-on-year. ago. SG&A a

two product our Now, solution by Gross basis semiconductor $X.X margin segment the up revenue a semiconductor were XX% in year-on-year. This and This points for XX% quarter. XX% our year-on-year, solution higher of for was billion was review up XXX segment total primarily margins. margins driven segments. Revenue our P&L improvement approximately of networking approximately represented the in in from XX%, as deploy growth, R&D margins was year-on-year. generation we increased in up invested R&D broadband basis were more comes QX markets. approximately X% $XXX to content up as up SG&A. QX, and end in million points $XXX year-on-year products expenses streamlined million QX, operating X% and we XXX for next Operating year-on-year.

was semiconductor So operating revenue up while grew XX%. XX%, profit

billion is Moving were infrastructure software P&L the and represented for software segment, our Gross $XXX in X% million was up up revenue. basis year-over-year. XXX for Operating on infrastructure basis integration year-on-year, $X.X margin year-on-year. points was of as X% of profit million up up X%. XX% Symantec. quarter, in at year-over-year. the Operating the XX% were we've This growth revenue XXX X% quarter, to XX% R&D XX% of margins spending $XXX infrastructure QX, the expenses software for in completed was was year-over-year. year-on-year top-line Operating points down up

X% Moving an from XX-days in capital XX% billion, QX million to second representing of were revenue. prior we note, second $XX was quarter outstanding on of also quarter. of or We billion cash cash the Day free We to in ago. flow, $X.X compared ended the quarter flow XX-days sales a quarter year spent should inventory expenditures. second with the of $XXX increase end million the $X in the

by average weighted exchanging to approximately front, financing from we the debt notes. On XX-years nine, our maturity extended

average weighted coupon X.X%. decreased about Our to points basis X

is the we billion $XXX $X.X debt, million cash on During made the obligations, quarter, of and quarter ending with billion of in total payments of $X.X debt $XX.X which short-term. billion

stockholders Turning to paid cash $X.X dividends. the quarter, of capital we billion allocation, in

outstanding million with We X the shares. of on QX. equity, diluted has stock our on Note, call trends taxes for also withholding EBITDA shares. That open current prepared concludes shares in the approximately resulting approximately the million $X.XX per consolidated we paid the is for the questions. Based in conditions, dividend revenues million cash XXXX to of common The my quarter projected expect quarterly of diluted on Board and be guidance quarter elimination of $XXX of share Directors that ended our in $XXX We billion million revenue. share to and XX% QX. up Operator, AVGO $XXX be third million remarks. approved vesting $X.XX please in common of adjusted fiscal count employee and $XXX a due of for

Pitzer first Our from question of Instructions] Suisse. [Operator you. John the Credit comes line of Thank

Your line is open.

quick me Thanks Yeah. Hock, guys. got question. the Good I've afternoon, ask from two ones.

to parlay been also customer just supply contracts? you'll And it. both as is into a for I'm properly, business, the to that able in we them just customer. wireless been you've that in then invest able have your are of It's them. 'end comments and the contracts the you business this any elaborate to your that? things start Or, the with tight confidence that that long-term Can benefited kind then semi need you implication comment? given about how within might the your have business of to have all they sign a networking I'd given confidence cycle?' that's And and argue elsewhere key when First, you storage comment? specifically secondly, you enterprise what recovery. longer-term about worry Was on on And curious,

is businesses. in we've about it the the where technology is thoughtfully it. We've that very go we we've do place commoditized. time. got R&D a and Okay, while one just do John. complex now. putting is specific been which with amount long-term carefully for know it fairly, technology a as don't And This strategic for of doing fairly We substantial agreements, we it in We're -- core customers requires been let our sure very core And we question spending. manage, thoughtful think strategic something doing customers. it's arrangements difficult me have where in to On if a areas

in we to timely the confidence our in in capacity out correct. just it specific is to is mutual to R&D very we a leading-edge best across board. return, in And technology a critical have it then offer It's an pointed the what the manner areas we investments. mutual, invest So customers. you benefit, make CapEx with agreement do a And structure don't very, is

doing have continue will So and been it, in yes, a very thoughtfully appropriate we to do we manner. it

the the part, question, On repeat second which you me John, capture be sure okay, I is let could everything. if

comments networking? elaborate brewing? that it a that comments little given space. the some you Can your a Cisco's within enterprise Or, enterprise surprised, network mostly just recovering was an little bit on little Was positive storage? more I'm bit not about on bit So a you're of

to the across when trying enterprise define wouldn't -- is It it enterprise is very spending. appropriately. is for It say I board necessarily across

my in different animal, as enterprise. notice we know, service traditional you separate As you comments, a as classified providers, telcos from

and investing, telcos on the out, XX-months. it's big have companies, And have the investing time traditional so a in the examples, in But provider, we easing, been pandemic no, America. airlines seeing manner are based see retail spending see whether mode. been but spiking sector, eases, broadband, in are up do over recovery past And huge a North we up. service step And as these pointed enterprise guys various the telcos not it customers spending, like, surprising, not I banks, we in say a manufacturing as

as a was centers, just that across not We year-on-year some I And board, if just improving. applies to on but the also not it But you campus obviously, ago. require of money, at businesses compute, still warehouses Now see are Wi-Fi showed networks, involved namely board. are you still that year networking spending less centers that require environment. servers, campus enterprises in data enterprise, and things in what are look storage environment, see say a to we do we that that like that, applies all to data seeing it see campus up the not connectivity, across

Thank much. you Helpful. very

you. Thank

from Our of Sur next line Harlan of JPMorgan. comes question

Your is open. line

execution, afternoon. your the cycle piping know still the the Good the gig big already strong as think telco customers. started and and have in of Great upgrade. early upgrade with XXX of Hock, quarterly networking cloud I on I two phases cash mentioned, customers you free flow we're your hyperscale generations. job margins

there of Tomahawk ahead more that have second-half still if year. going bit you. two a And are as are of here you more year, the cycle and another in this upgrade start say the quite X mentioned, then to you Let's next

upgrade backlog, growth given into and So in year-over-year the visibility telco a inevitable recovery you enterprise, cycle continued see that in the team extended an the with do next has year? driving strong networking cloud

of X. on than platform. quarter second-half it hypercloud able trajectory, does all, push in delivery center the of which a be not trend, at don't fairly one smart guys out first back-half the time, We we're were will go will on But, really we try to substantial sign Tomahawk the indicated broader backlog for data G that. do guide to that more as appear because the the in on as is, for There X to the much the said XXX Tomahawk a year

of enterprise telcos rebalance for never that do ago, probably I'm and sure steps in on knows we But see if side. So everything broadband really will step But see longer do that their as service are that was cycle not is economy backlog with going in taking off of we see We for of to some level backlog. do a on And in step it on. providers, and one would, through you're pause we give with sure them necessary hypercloud in we what up here, that though the recovery of their start by right, we until know And upgrading. upgrade. the this the see I And whether is into the year is continue XXXX. terms hypercloud see we enterprise, the would But in see sense particular, XXXX. the associated upgrade, that it table. not sure what not part putting the spending, reaching see XXXX. to spending it a We're just enormous we relevant

you. Great. Thank

you. Thank

Seymore of question comes Bank. next Ross Deutsche Our from

Your please. question,

to the having you bit with lead had dive could are are equation the of the interpret being further. lead even for implication the quarter, about a willing people backlog little wanted quarters And instances, far growth side that stabilizing. the the the Two had, supply far not it. they're out of you so to times time ask size and on or sequential talked I so of extend Or bunch book, into results. different ago, that People you that on ways me the catching as about the some demand last the is in Thanks any now guys. ordering commentary bookings. large we're frankly, stabilizing. strong hearing the up Hi, to that just that Congrats question. as that Hock, you the year-over-year, a talked in that

take I So, commentary double hoping negative? why that positive feelings a time and stabilizing. as to was click do that a on you get lead And your to it's as

chance give set to to glad I'm made opening I it comment a made point just a in we Good time have I my bring bring remarks. stretched our quick you far, a me up say you Oh, to comments so Ross. and up, of lead clarify

we are at comfortable We are on. the lead times

is opportunity continues lead we last But that to lead I'm but we that what of booking made it customers thankful And and comment months, rate remarkable the so step time -- times three over bookings seeing for point. week to to last our comfortable the up. our what that stable, that is customer, found I is, for stable rather we week consistent, continues receive volume time reiterate have now. the the seeing to are our Sanely make are grow. if quarter every every remain even

you. Thank Great.

you. Thank

comes Securities. Our Bank Arya next of of from question Vivek America

line open. Your is

part are you when it? you. have situation shortages of on right will supply kind do the And Thank become resolve another you supply now? your for gut constraints, Thanks for one were normal? any taking is B And, how the feel you what what that And of driving my had growing? there question. business be on of situation. would the fast If semiconductor is, Hock, I supply no kind doing to

I'm amount ourselves we not do buy peers either the buy in I hot you to customers to do want also think the there's because nor we should answer they a last, sure. not ahead our anyone know first, don't that mean. first our buffers, don't too the and will But create of and I'll do put and on situation in to not between certain the want of Great. it, it's any what to

I a try as In is end for process representing. date we we the a industry. And term are those of other more. see through rate is So, in quantities we you And as and words, date rigorously to maybe today demand. go and growth quantities used true we drop said the look drop little match identify, understanding to ship through what

We are shipping hiding to have could could customers their no the consider true we what There's not have is with been. been. We're believe what real demand. what

nonetheless, we and pretty do to that. it quarterly, able to see just Now goods And getting but tested, chain really size And look fulfill of where having of other the truly size assembled, basis. to challenges this basis want of said today, have, JIT, perspective, at sold, the in cost ensure we continues challenges our may can we in regardless supply size our a that during supply try timely or backlog that to that be we versus get our wafers, and delivering chain. is you sustain constant in components close what keep inventory we've of have the from entire in that in been time, we And we on a any this we that, the And the whether products small running. substrates, the time our still through that we revenue components, thing is can to do run of side sure timely make just customer regard. the our just it's

needs to truly components question. decent XX% All we're on pretty demand view, semiconductor reflection is Nice there. what our you growth is, out in so right. end what like And reporting year-on-year a

Arcuri UBS. next from Our Timothy question comes of

line is Your open.

a Thanks Hock, ask wanted business. the growth rate I of guess think you to I lot. you is long-term your what semiconductor

and high technologies these and iPhone have that's pandemic. the easy the to launch of year. the compressed you But of to trending of due pull the of sort some You're due kind forward comps, this to teens

right still you all think once growth better thinking this Thanks. that what rate X%? for the is business? do be bookings the long-term So, recently strength you given the the than Are Or, maybe that? do you normalizes, it think of sort of could just

very if of dynamics know supply supply, demand hell to works created, demand question. catch in change. industry haven't as tell a to semiconductor dynamics I the look But severe changed. right underlying a you a about of long I'll and And That's enough, up. at also the the hasn't now, perhaps, I a we're it strong within demand. midst all yet that's imbalance this, as think At And fundamental as you least it the seen underlying we

give anything will is that's my next So industry best keeps Tim, of is is you, getting change. for answer which I that's the have me evolutionary, over great Because less is this Technology fundamental and I seen and better. this there's matured But better haven't in can which changed us people like a industry still not even my it is evolutionary. and it's the a as behave. Disruption, best, tells say, an look relatively to industry, evolving, event. XX-years, it's evolving. and that thinking, how I it It's

Thanks, Hock.

you. Thank

comes question next of Morgan Stanley. Hettenbach from Our Craig

Your line open. is

you thoughts the thinking on and/or improved the as cash the balance just M&A sheet, forward? how in you your and Thanks. given deployment buybacks, cash flow can Hock, about go just And about ongoing also, talked free strength you're environment?

our is cash flows dedicated I'll of one. to allocation, foremost, paying that Relative Kirsten. Yeah, free to take XX% shareholders. to capital This we're first our and

that so would And be first.

debt creative it Then second Secondly, the be we the would there can if and end, thirdly, M&A, at M&A, buybacks stock objective. repayments. -- be would

the M&A does I anything So talk that's looking let yet if isn't that about. at in allocation front order. know. But up, come think that can we're we'll how I on anything capital There you

you. Thank

of from comes Barclays. question Please next Curtis go Our ahead. Blayne

Thanks question. afternoon. good for taking my Hey,

COVID? could look the you're segment? guess how think excess more to Should little what forward enterprise then a comes terms it's you curious, the And on product margin, of margin? added with or if then back? that Just gross to color costs margin. gross as about still it due you the on as dealing be detail to here, record I describe gross And in Any

I the margin normal know, the you quarter year, expecting the quarter. as wireless for come it to then we're back be at in ramp we gross end that this the as expect And same have, and next will about was of margins from point, so networking experienced year. the end a to towards being sustain mostly we margins down quarter, come the this see the I coming at But bit that this able us the of and broadband. to

perhaps and with conversations the you past Blayne, myself too you, result that repeating from had ourselves I much with guys. all to

natural has franchise next necessary but new as margin combination to products. a sequentially gross generation product some because a year-on-year, a Our And our tend simply we to much this product, expanding to chance go continuing to trend as new across not of have keep this. all it's year-on-year, of quarter-on-quarter, of

generation to which particularly points especially So to semi XXX as semi is, your margin. product, gross assume we to XX generation the software going product margins, I've an lift And gross different each gross because side, said, XX, basis of with should different have so margins the about get in each which lines, is a a new expansion business, side, on we XX related as each time natural margin or come to average across translates margin product new our a with hardware, each expansion know, range the And for growth our different I in just of year-by-year. time, lifecycle. you out in I well, product take XX Blayne product it's we question of always a

this end higher still end us bit and to something gross will And case, is higher range. improvement on there we a this a is point And don't point to related environment XXX But, But is everything side. of a range. particular forever. up because than XX on mix basis in And I end the So it's that that takes perhaps on higher puts to will year-after-year, this than XX go fire. think margin see our expect you across the semiconductor go in not the in basis you not with XXX normal to should unusual range. product based are that that to see probably of range, products on more a that's separate year-on-year

Thanks so much.

Thank you.

Our Hari of Sachs. from Toshiya next Goldman question comes

Your line is open.

Or, the Thank Hock, in one wireless and taking side. just guys. was being Hi, I in questions. two to on my wireless, better? much supply the QX one terms guess, cost understand primarily than think in as of then wanted how sticking your in content pretty much came demand for had revenue expected. You are And at you know that thinking on than the I better this so came I that expected? on actually, the were you there wireless, largest dynamics side customer, you opportunity point? to generation about what's next product cycle about locked in. better

and impact the cost a on your vis-à-vis about cycles cycle speak helpful? on comment perspective to this wafer some compare seeing and comments would from business. can then be you. comments, substrates that inflation touch, the maybe on next an Thank year be having and and Kirsten's or pricing super And in doubt RF you can if based contrast and would But side, cost uplift, and If expansion you cost is you're so made of on Wi-Fi, over past I helpful? the that what this margin you gross just super

analog right. indicated it's with was Toshiya. QX I of the all last related demand. you're two wireless, me, remind start we higher of to wireless What better the let's than track on planned. first one. you But kind And lost And was Alright, if had originally

demand. it's course, Of

not demand pull are may for one in May, about comes saying and is And don't this we We to XX XX% on allows growth in I'm And except a and And demand is a yet, that that, year-on-year It but some which can't fully all Not is I'll this QX perhaps in environment, that content sensitive we situation will be telling provide. the still as we the ship have offense, bit careful growth. question. short because never to not of great, QX based where this arena No sensitive I year-on-year from the chain will XX% answer know why know to highly its cycles and XXX% happy related part sure is, at at semiconductor just inflation this not QX. I QX it. know, year-on-year all perform to supply we come question and still prefer but third ability actually question, to because as under year-on-year constraints But much. a point bit the that expect. do we all. with product. have which please. sure, QX that to that's fulfill happy yeah, from pretty plus, But we we thing, to in plus be QX I'm we good answer take you improvement demand severe on is cost in

components. whether are suppliers many large we key of customer we very to our Now are our very and loyal large, very, a customer of very

we are address inflation. who treated are pressure to purchase in And prices price so being our to Having environment, on inflationary very are to see well. believe course, in costs, site. talking very where to We we of very, in higher cost able concerned, your a turn are And very we that, this open cost open said not. costs, customers

is stable. why been we're have which good, margin our So

Thank you.

Thank you.

Evercore. CJ comes question Our of next Muse from

open. is line Your

Good guess picture Thank question. the chain you question, I for bigger Hock. a on guess supply I and afternoon. Yeah. question another the taking

with Curious time post-pandemic? customers. increased your selective kind changes if or pay times, industry of taking of If you question same At semi structural kind we're to John's contracts the take lead talked you think strategic any to multiyear with about we you as see foundries. agreements key earlier about, the emerge

Okay. manner. in And people for that. not good bit think, we of at been My competing day, changes see all Sane necessarily shouldn't that any I speak, will in the I well thing. And is, view frank we'll manner the in But question next able flick know, always don't context XXXX, see If maybe demand See, are the agreements. so the technology doesn't best agreements the people I technology that changed. industry. goes. themselves all any it think or the in in to these timely the loose of the been into to point. at my this industry or And we always you semiconductor provide. a to of competing. the about to fundamental is the things this the related products cycles do I don't then matter to any make you we're industry. that creating asked have extending opinion, over the need the product extreme have is such like customers while because breaks successful, XXXX. storm, And long-term I supply have to they a semiconductor hell the the anything we the in semiconductor It's But, need many need do will need over stable that a end be. slower. there partly of all XX, or very technology, you be And some any XX-years that products expression do a And course, technology, seen the be offer not the pandemic, now of best way or same is, like it's faster no, performance, that And deploy times provide as was there, And the your that grow has being don't we the customers. course in able

just Now, we putting establish can might make myth. outperform life ourselves a I agreements it's engineer that to our have but the We competition. still think long-term easier,

Thank you.

you. Thank

from Danely of question next Citi. Chris comes Our

open. line Your is

about lot There's know of team speculation potential will Broadcom? what Hey, tales, wives old impact talk worries, a of of And, gang. big and don’t in whatever, I the there thoughts build China. be this Any for thanks, inventory Hock handsets

not fully two big handset articulated I that needs sell inventory on an Well, Korea, then very wireless sells if much phones. talking that are of business, in the basis, there do a if America, one in China. direct expect to we But flagship not sell overhang We do our indirect We're out pretty And to excess status high-end to one thrown handset. the in blowback on in largely. side and not any, could to these to because, certain is not there, be anything. and And out big there there's two be now North do recognize just other markets, directly customers there. we is if we see customers, have such directly, a product, large our sitting as about guys, much, wireless OEMs

Thanks, Hock.

Thank time, remarks. the I'd to you. like for to Yoo call closing Ji turn over this At

presenting BOFA Thank the will Conference that Tuesday, you, please at be note X. closing, on operator. Technology Securities June In Hock

our our Eastern of teachings Bernstein earlier Hock and by our on XX, Following be on Xam call. at hosting General year, today. a [ph] will head business. networking hard for of Jas Tremblay, XXpm of our Operator, teaching business Broadcom the Dan Wednesday, Connectivity Pacific. joined end Jack our Manager will will be storage marketing businesses Storage broadband Rondoni, this may our July Thank drive joining. call General Server Manager all earnings and thin and disk conclude business, you Dolan, That you

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

You may now disconnect.