Marvell Technology (MRVL) 25 May 232024 Q1 Earnings call transcript

Good afternoon, and welcome to Marvell Technology Inc.’s First Quarter of Fiscal Year 2024 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. Please note, this event is being recorded today.

I would now like to turn the conference over to Mr.

President Relations. Vice Senior Saran, of Investor Ashish Please, go ahead.

everyone. Marvell's first you, and quarter to afternoon good call. Thank fiscal Welcome XXXX earnings

today Marvell's Murphy, Meintjes, are CEO; me Willem our President and CFO. Joining and Matt

which our everyone expectations. remind management's and made forward-looking significant certain Let to are could differ me to cause that subject that current results today comments include statements, actual uncertainties from risks materially

today cautionary and filed most our the review SEC posted earnings statements. with statements we intend release, which recent We factors website, in Please our forward-looking not and contained press our the update as XX-Q and on as our to do risk well filings. XX-K

financial section to our non-GAAP our A financial measure today, of in measures. non-GAAP between is Investor the our will During available call website. Relations refer certain reconciliation and we GAAP

turn comments his I'll Matt that, on our the call to Matt? over for With performance.

Thanks Ashish, good afternoon and everyone.

XXXX, the earnings Higher was quarter revenue were first revenue to of sequential X.XXX the Marvell's guiding the to revenue share accelerate the per drove will the half above billion, the in revenue to at and $X.XX for mid-point $X.XX, of mid-point. For XXX go quarter growth above expect fiscal We guidance. of our the fiscal second second midpoint billion non-GAAP year.

changing to Generative for of and new one its has increased represents Marvell. be opportunity In for within rapidly end get AI the market, we the customers. AI our that investment AI cloud and is driving let applications our to importance each we results for the cloud, discussing the Before opportunity me dramatically. priorities start applications therefore tremendous by many considered but past,

architecture socket block this data massive efficiently interconnected to thousands at process large building for of is dual the is cloud sized center orders cloud form required element accelerators than different infrastructure. AI are in require datasets. magnitude these significantly as a servers what's GPUs. the AI systems workloads Iraq, primary data, cluster, truly standard AI of multiple standard than than AI core systems in containing Today's system these Rather In centers and data higher such To deployments, the a interconnect to infrastructure. is in

idea, bandwidth. To data in can gigabits containing the X per server example support that the contrast, up an of drive contains close interfaces duplex an AI advanced full dual to cloud to of you drive center XX the to can latest CPU second terabits today IO In and bandwidth. give an network XXX accelerators system of

to to of each keep for traffic. these network of more a maximum cloud connect required these together, of in of single As tens capable connect systems [meeting of these provide in centers terabits hundreds driving systems bandwidth customers their scalability of times mind, [ph] cluster data] systems thousands with

within And cluster latency in over possible create high These operate center data reasonable be to at able need scale, clusters sizes needs ultra-low at order to And increasingly the a power of of distances. high provided a staggering to connections require amount which connectivity, and all bandwidth reliability. be these largest to long outlook.

proprietary such infrastructure, see breadth and PAMX we fully and with a optical our is This growth DSP driver AI is of other is as are these connectivity variety fabric strong platform. capacity InfiniBand, utilizing optically for best note solutions compatible as provided And Ethernet, high maximum processing DSPs switches. connected for important protocols to it that network flexibility. by latency low why signal This a and digital

trend this we accelerating. forward, Going see only

are by of [X that external AI Take system the I [ph] performance most current accelerator] might While already to network implementations advanced constrained still AI are the systems interfaces today's using the surprise you highest discussed it AI bandwidth available, scale learn XXX capacity. an driving close connectivity, four contain per of in typically today aggregate capable X.X systems second system bandwidth. of to interfaces of Those that is But for example. which a bandwidth. per provide that optical XXx for earlier, gigabit terabits second

per the bridge gap, scale. to AI the system these To of interfaces capability more expect as compute accelerators higher next bandwidth clusters expected continue and optical have this to grow we And that are generation number of even requirements. to

the at X months standard is refresh is AI Given months at in speed infrastructure versus technology which advancing, infrastructure. years XX XX happening plus rate the to

higher and massive a major of refresh a connectivity rates amount faster to platform. increasing drivers speed expect these of demand for we interfaces, clusters, in AI PAMX Altogether, DSP adoption be optical our

that entirely ramp by XXX industry our was we applications. AI DSP in earnings call, the In leading platform in gig our last indicated almost fact, driven

announced We from as DSP the industry's expect current adoption to the platform, well. first of have products throughput terabit drive we and PAMX the doubling also these generation, initial the AI X.X

has In Marvell noticed and DCI, addition, by connected data a bandwidth pioneer or links be as interconnect multiple data in they inference regional technology This high center over has is this kilometers. latency deployed centers, to need tens of at market. been low optical

created already We our demand AI industry's per now XXX module centers are data increase cloud latest seen XXX in a we that and gigabits for providing product significant DCI, DCI driving are pluggable first solution. the in second ZR for line. We

implementations products clustering DCI next Another on across demand the driver sites. planning that accelerators AI for are is different our generation

inside leading built latency position switching our generation the the announced technology next also on growing nanometer demand from recently key platform. acquired latency for We a low is growth a products. ethernet Marvell XX.XT switches, Platform market Marvell's and architecture we on seeing based XX X Teralynx strong our the capacity platform. Innovium data are of high we for in and has for center. is switching AI demand driver low is

strong are We for product. seeing interest this

lead to industry's transition XX.XT from XX.XT enabling network quadrupling bandwidth. to switches AI a and expect the today's We

market. leading has We network growth for a together, Putting expect both XX.XT adoption for semiconductor will and it be a all driver Marvell AI. the built position networking connectivity strong

growing the in solutions by growth We for fueled AI. DCI optics Ethernet investment expect and tremendous our PAMX switching

optimized exciting address opportunity more even AI our to cloud platform. through is Perhaps Marvell's silicon in compute

of by are accelerators the earlier, center networking data In primarily architecture compute security. off-load bulk used fundamentally heard an for cloud while as AI standard the different. infrastructure, CPUs, and is is tasks, you such of the As performed

In combined a GPUs and [ph] standard centers while infrastructure, infrastructure. XXX contrast compute are for AI with from a dominate CPUs purposes, cloud accelerators compute investment degree driving towards incremental accelerators AI used reversal proportion of CPUs like in to AI the primary now This compute difference a opportunity. results engines, [PAM] to data accelerators increase is the are Fundamental of in accelerators. control cloud ratio in the higher sharp higher with in

see October their by much specific their accelerators a and AI grow cloud revenue and Day enhancing to of set of customers This address to custom larger were and ramp production. we our a Marvell's infrastructure. offerings optimized in own Today, silicon opportunity faster designed the all we opportunities growing in building at annually When see previously custom our once we revenue cloud we cloud compute expectations wins AI needs. first from Investor discussed $XXX is and the strategy, for projected part their million programs XXXX, optimized to silicon design now of core

at with computing These video in security, of including several today design the applications and driven from significantly. projected XX% AI, total we prior same designs lifetime time, the of these look relative to AI, has a proportion Same AI increased of lifetime included networking set our revenue wins, revenue along today. from half expectations by accelerated over from applications. forecast When variety storage, approximately our increased have well

demand driver projection XXX largest applications revenue As over platform. programs set those grown these to and prior as become AI, opportunity from million the annual AI a same result, increase single exceeding see optimized now time. design well cloud in revenue silicon of optimized continuing cloud we has computing wins, for Marvell's and the from The ramp

year. ramp we tied AI production custom have fact, volume a In silicon of number to to into expected next products

samples an and year. example to already programs, up for deliver and well. lab these proceeding one As of we out And first case, initial other our take quarter expect customer's this at the qualification calendar and before of end in silicon the is running are

our in for we compute in addition the can network position As you we believe strong to see, address opportunity. to are well-positioned AI, connectivity

AI and from track Over time. taken our over map the can last its time progress few months, revenue we carefully we so have

we accelerated pace. an the Given the demand from customers, recent our at revenue increases including our expecting driven grow we've are made, progress tremendous to applications AI by

our In year. we prior very AI approximately estimate was these fiscal This revenue call XXXX, bookings Since our for products early earnings PAMX the our increased in from last XXX that revenue XXXZR million, have products. significantly. from DCI dramatically primarily optics and March, was up

double As at Marvell's in AI a overall we result, fiscal to revenue least XXXX. expect

again year. we growth cloud In AI for we on is robust we call. XXX% growth In expect Looking our growth foresee of other next XXXX we over to in ramp revenue top Layering double of fiscal to the earlier revenue fiscal network connectivity. optimized an to AI the this over the words, XXXX, are expect from XXXX from programs CAGR AI aggregate, discussed we the at continue forecasting frame. time the overall to least

implementations and both and and tailwind we exabyte storage to in In future, the growth, overall HDD to involving expect generative Flash. video AI images a provide

difficult is AI. accurately from to to business specifically it revenue However, allocate storage our

AI I revenue forecast the include not contributions. does So, storage any discussed just

our semiconductor which to portion and becoming our in in also is In network networking, trend AI for storage. a scarce tailwind aspects few plan customers addition, of one and systems, of increase AI over traffic enable their captured spending portfolio three that compute, companies of uniquely able in We've cloud the we we shifts AI rapid revenue not seen on forecast. in believe We bigger time, from yet positioned will have a to to expect a AI provide participate networking Marvell broader this much all is infrastructures our CapEx.

in successfully technology, the is customer strategy, market. team, relationships this at infrastructure right this XXXX Marvell With becoming the pivot incredible lead AI and and data out infrastructure set Marvell to forming application, have to executed of transformation. in ultimate data the to center We that

one vision. in that customers our semiconductor the continued to confident help sharing We companies future. our We forward look their are be in most of relied to the on AI will progress we achieve

me XX% expectations quarter declining market, Let now center was end market XXX first and by revenue on million, the and our data our data move for end year-over-year results reviewing with sequentially. XX% to center. In starting

was expanding guidance higher first deployments. we revenue our where interconnect products Our saw cloud than in center by quarter demand driven optical center overall data stronger for the AI data from

our was to the in overall the and responsible majority we although grow for growth are half. center data in continue of sequential storage in quarter sequential start in expected, As the second decline business to data center our forecasting revenue storage second the quarter, the first

for second cloud center grow market, overall our the XX% quarter to to data end expect revenue ahead over Looking sequentially. we

of our to decline center cloud. portion on-premise we However, enterprise data end are growth from the expecting an offset market

we end a data from revenue be in the overall expect As flat result, second our sequentially center market quarter. to

end first wireless our Turning sequential This specific and along market, We Partially demand year-over-year the customer million our offsetting wireless expand for XXX wired product XG wireless as in infrastructure adoption to of new XX% quarter was with growing digestion to regions saw was end continued ramps. for revenue. carrier our strong start X% approximate revenue growth in the our in geographic market. sequentially. growth XX% resulted inventory in our products,

revenue Moving market our on digestion due wired sequentially, decline to to from for expect end market. mid-single-digits we the quarter, inventory end the carrier in our outlook continued overall to in our next

first networking end flat quarter year-over-year enterprise market. is Revenue our to our was better guidance. the than XXX which XX% and million, for on sequentially, growing Moving

quarter by a and customer channel ramp reduction strong first our planned our in inventory offset products. ASICs results of merchant in reflected enterprise Our networking custom

our inventory than quarter fiscal project second we by due of decline corrections more the in end to sequentially, market. revenue ahead to enterprise this XXXX, to Looking networking XX%

was year-over-year Turning industrial flat end revenue declining sequentially. and quarter market, the to XX% our first automotive in and million, XX

business gains our automotive both growth continues sequentially, decline by our deliver a While were business. year-over-year in these offset to strong and industrial

basis. percentage XXXX, industrial revenue to the Looking low end sequentially on our auto we project from and market second grow to fiscal quarter teens the of a in

Moving for XX% and declining the our was below our end market, revenue guidance XXX million consumer first on to sequentially. quarter XX% year-over-year

by Looking ahead custom forecasting strong in driven we demand for range, are our to to the grow controllers. quarter, seasonal sequentially revenue SSD the growth second in mid-XX%

start our to as shipping In addition, controllers we from growth closer expecting consumption. market are we end ACD

due corrections. second remain our to sequential markets will second the year. end In summary, we in choppy starting we guiding the from enterprise quarter expect markets growth inventory are down the and and with and uncertainty fiscal wired growth continue we trend and to macroeconomic of resume to expect accelerate half to revenue Few

We declining from wireless the step-up fourth quarter revenue and expect before our a in end the in quarter. third taking to market pause

end positive many our see signs We data markets. in center

revenue start our to center we to center key forecasting storage quarter cloud growth demand. our in the continue data the are and shipping data aside we improve storage, We closer to market revenue. be resume Putting as for growth expect to second driver end

to demand rest year. We seeing are the over from revenue and sequentially in grow we guiding second our the the in cloud are increase of a significant for quarter, AI XX%

In expect outlined silicon addition, programs during the in-line meaningfully the revised expectations we call. optimized cloud year more to our progresses, ramp last we as quarter's with

result, our of for half the year. the second expectations for higher a are the in we company confident As growth in

significant expect also We forward. going to drive margin improvement

driven about are will Marvell's corrections growth resumption be behind that end us product revenue specific mostly ramps. excited anticipate we this We by by of the of and year, the inventory

laser a cost number been of gross actions margin. on We improvement have improve focused to

have return our As fourth non-GAAP we this range for to the fiscal our least to the margin forecast in confidence a target our low-end at in quarter year. gross result, of of

customers been clear We've extensive view our and discussions in a road of current have their maps. with

pushed been been others have accelerated. programs have out, some While

We the of front aligning are in highest opportunities investments, us. reprioritizing ROI our to aggressively

our We additional operating focused are efficiency reduce on also driving further to expenses.

are to the businesses and road changes map market. our reflect some in We combining making strategic of adjustments

from product improvements. compute, our Other single into on custom resulting and example, are growing an teams As ASIC our needs efficiency custom a we've customers' working for organization. also combined groups processor

rate exit his operating than and As XXXX forward. will strong provide a to carry This communicated. help at run lower our fiscal expect commentary. deliver OpEx in on going expected to to previously discipline result, a is expenses into we us more Willem details leverage

to a of ago shareholders. term. Before during customers, years the Marvell closing, will current his X moved as end the little Board my joined Chairman appreciation time. at difficult who the a to Marvell and express reassuring stabilize from Rick to quickly and very be like Board I'd Hill, of personally Rick CEO He the employees, over acting company, retiring

company It helped in executives. of group board first key generation who is establish impart recruiting and large and I of because thrive for joined Marvell to seeing succeed. contribute Rick. He is world-class part and the to and find their individual an willing the a instrumental of of others very in was the the wisdom their next time to energy directors rare leaders satisfaction of a

over team At back company. past honor us his the and the critical moments would years, me as him Marvell, Rick grateful X transform the I'm to always steps leadership it's Without his Rick it for an Marvell today. had enabled take contributions most Marvell and teams belief mentorship, to the not to his the bold in Chair. truly where is for succeed Board and exceptional to be to

be from his June. Marvell. my and Board when Ed joined for will retiring grateful appreciation Cavium dedicated term Ed service in years us director has I been like I'm the Marvell who an expires to Additionally, in his would express to for to of Board to XXXX. Ed Frank, outstanding Dr. the

Finally, dedicated I are moving yet days we to confidence our are come. forward with employees. of want Marvell's that thank team to Together, best

turn With to that, recent for detail the call Willem on results I'll outlook. and more over our

good afternoon and Matt, everyone. Thanks

guidance at quarter first revenue Data Enterprise XX% for carrier the fiscal industrial Let of infrastructure with X% of our at X% X%. was me total sequentially. financial next declining results of followed XX%, networking at by largest XX% and Revenue end auto XXXX. center was driving of consumer of midpoint XX%, in start the market and was largest total summary revenue. a first with exceeding billion, the the quarter our year-over-year X.XXX our

gross was was GAAP XX% gross guidance. in-line XX.X%. Non-GAAP margin margin with

based reflected adverse results were operating million, and margin headcount revenue acquired forecasted gross GAAP compensation, had this Our mix the related share restructuring amortization assets, costs. XXX intangible related we for costs reductions, of expenses quarter. to acquisition first including

guidance. slightly XXX million, were Non-GAAP operating expenses below

prior to increases. reflected XX.X%. GAAP was expenses and taxes seasonality payroll employee and was operating quarter XX.X%. salary the First step-up margin quarter, from operating the Non-GAAP merit operating margin typical due negative

$X.XX. loss midpoint $X.XX per first GAAP diluted was of diluted the share the income quarter, per $X.XX, guidance. For above share was Non-GAAP

flow Now, turning cash to and our sheet. balance

XXX cash long-term previously was payments. from During This operations included flow the for committed capacity in XX payments million. quarter, million

Looking fiscal minimal currently of ahead, rest payments the for XXXX anticipating capacity we beyond. additional are for and

As XXX the at the a million. result, cash payments totaled capacity a XX to expect approximately was X.XX compared of we end sequentially. much to quarter first flow fiscal where operating long-term reduced headwind for million decreasing as by Inventory billion, XXXX,

quarter. a million days prior XX XX Our returned the days, days cash was sales to through decrease We of outstanding from X shareholders dividends.

end first were cash our is and almost billion, quarter, fiscal of systemically As in held important cash which of X.XX of the banks. the equivalents all

XXX billion, drawdown from of Our line credit. total of our revolving was debt included a which X.XX million

to and was debt X.Xx. X.Xx net gross Our EBITDA ratio was debt-to-EBITDA ratio

me provide allocation specific quarter, year. capital of the for I operating Before for second rest guidance describe the the plan margin, and for expenses, gross our let

you aware, caused an our certain As margin. mix, adverse gross inventory significant impacted are corrections businesses in which revenue

that largely optimistic done at closer time. corrections to will fourth are be that shipping the be we quarter by and end inventory will We that demand

suppliers reduction we put efforts further operations. also are multiple have streamlining Internally, efficiency and gross with in the optimizing We continue chain. to Externally, headcount to partner margin. to we supply drive improve our place strategic more in cost

result and of margin are confident improvement will our that to We gross start efforts, improve. non-GAAP reduction cost a mix as our

return the XX% our at low-end third of in XX%. improvement fourth can We by least expect the of quarter to range and the target modest quarter, to we

outlook. all efficiencies told whilst and map making you, are our we additional maintaining Matt road growth long-term As adjustments driving strategic

fourth XXX As to expense to quarter operating million. our a be we non-GAAP reduce approximately the expect in result,

XX-week a XXXX The fourth quarter of fiscal quarter. is

in XX this the year on the for extra for is rate forecast this XXX million expenses our a approximately basis, So, million. included we expect OpEx normalized to be XX-week non-GAAP week. exiting Therefore, run in

to we look and payroll taxes ahead first cause and salary sequentially. employee XXXX, typical step-up OpEx quarter will in we fiscal seasonality the merit As increases expect that to

million first are of quarter modeling the sequentially we exit prior on result, quarter. fiscal a to percentage normalized As the from a OpEx XXXX XXX single-digits XX-week rate basis increase mid-to-high by in

sets tremendous We are drive confident up that to year. us operating next leverage this

we we flow. due of terms XXXX that of leverage balance capital planning meaningfully gross are and off cash debt cash paying in free going allocation, In our XXX our This will improve on January using have million our forward. total

payoff, this resume in our program the to Following we buyback expect third quarter.

to Turning of fiscal second quarter our for guidance the XXXX.

We revenue minus be in to X.XX are range or billion, X%. forecasting the of plus

expenses in the expect be our XX% non-GAAP anticipate range to expenses in XX%. will range XXX margin our We GAAP be project to We of operating gross will GAAP non-GAAP approximately XX.X%. XX.X% We operating project be million. to our to million. be the margin XXX gross our We approximately of

We on to XX expect including interest approximately our other and income debt be expense, million.

second non-GAAP quarter, For of we expect tax X%. the a rate

weighted million, million. basic be shares XXX outstanding be our shares weighted average XXX our and will diluted expect average will outstanding We

GAAP per income low-end a on share share we the result, diluted per earnings of in As per of an anticipate to a the the range high-end. $X.XX $X.XX on share of loss

of per $X.XX the diluted We share non-GAAP expect range income $X.XX. to in

move significantly to quarter, continue this in sequentially, improve fiscal In operating to to summary, gross continue as margin and through the grow project fourth year, step we our down. revenue expenses forward to to we

improvement. signs shown of DSO inventory have and Our already

looking we up year. strong over improvement flow driving for tremendous in setting a growth are to next As a leverage platform year, and generation while operating forward result, this cash significant

the open please Thank line announce instructions. Q&A you. Operator, and

question Please Ross Today's Instructions] Bank. Deutsche comes with go [Operator ahead. you. from Thank first Seymore

question. changed call, for It guys. since like last me sounds your Hi letting have significantly things Matt. a Thanks ask

AI accelerating? dive the the course great please? you find Is AI then cyclical side talk Is over quarter on that if I You cycle side bottom went the has just about wanted changed side into that's bit the you about of to just the a Just in sounds details little really you finally? how behavior it that bottoming. your the through behavior. could, side like it's customer and the it have

Yes, encouraging growth Yes. in Hey, think the it's second Thanks see I Ross. quarter. revenue the for question. to

by the up, you company see encouraging So pick total cloud overall, that's know, plus, sequentially with bottoming QX, growing to back driven and XX%, AI. of revenue kind in and then

So been that's certainly positive. a

talk of a I number just think, moving the the I'll pieces. There's maybe about of rest business.

much in terms A in lot etcetera. it like of automotive, came carrier, barely of pretty things line

is So, haven't behavior a think we change, that, seen say change to AI. related there. the I Really – biggest two things ton of I the would

is increased increase, our level just backlog, first a for positive. the significantly. products That's particularly optical of The has forecast bookings,

we in to, was second The the time a AI revenue coming manner, last took where it. stream, what's detailed really and is quarter our quantify quarter that between very from, this driving it

in it have market filter our can that embedded system actually as We by. a end we now separate

around know, positive last year. at at basically, a AI So, we they again really we the to take is a you you're we history, of this good you is good view $XXX of wanted And then million definitely a that communicated were know, what then, when rock least see seeing And the a and we solid. level doubling next year view have future. doubling so is time least numbers, And the of year. what revenue story, for which

change. and infrastructure the non-AI So, say the will definitely up some and the maybe that's is the well. grow grow here was actually it's also AI, a biggest next us. little quarter, a of side, but the the cloud set-up last just say, bit for year I'd and I'd which for great probably on quarter also year single been going as uptick picking throughout announcements behind second in has broader in And

gone that for things the deliberately include the call, AI this one at in I on. just are final we have in don't on remarks, on everybody but said storage – the those time we So, stuff, just prepared note And of AI. some my

to clean to systems there's given that for business time going exciting that map products, or a of the seeing over really very particular and know, directly not. what set very data that's you're think pretty found just number. is, amount be to AI get difficult We going AI to of need a tailwind it But to stored. so Clearly, you I

you. Thank

The comes Arcuri Please Timothy ahead. from next go question UBS. with

wondering back going can There's how Matt, be storage the due the the back think big inventories, thanks. grow of of networking sitting sounds in year. kind of back of of that's you year. enterprise you cloud you to the still half OEMs coming It to to center business Hi, a Cisco, on half if frame, wired like moving still the I'm is Data up is as to in revenue and many kind digesting and are some going of much lot there is parts inventory. But record know are well. Juniper. start Arista,

can revenue quarters? you of much for into fiscal QX Is those as digits can each how better think QX? even kind of you you it or and Thanks. mid-single So, reasonable frame sort just grow fiscal expect, get to of

Tim. Hey, Yeah.

some data, it. I’d you just think way of give sort what So, to about

with just we is, quarter. the first second think I start

Okay.

we're lot is server thing. So, been networking, seeing by weakness enterprise. as kind of sequential you've an the take when data piece. growth of cloud if you quarters, last And same again, the kind customer inventory five to a There's the sheet. read-through for, market on enterprise balance continued overall issue noted, you look the And probably of the being at offset that's in clearly The on-prem center growth.

some So, for signaled we time. have

throughout We the expect to continues year. that that correct

inflected really And We in I'd AI half. you we year, in in continued just look the our at has our in again, to you as the what mean, company infrastructure. know, know, back-up cloud terms kind is, growth of QX. I beyond you XXXX. see next second if out, point least we of even think the into I strong have you look the fiscal growth doubling

non-AI both as cloud, some cloud as the well That's coming storage programs. optimized back, driving and also growth as as well meaningful growth. So, optics,

very storage positive. It's a then QX, come you you know, continues that's next the year. still guide bottom for indicated, back, is next our as should low. know, to but off grow as in you So, be And year. Automotive you

of lot strong So, growth very drivers.

kind last And in the run line are is need some And enterprise. half XG way going is it offset, continue gets QX, more QX We where we about be drop own going, that over I long year. off actually several incredible carrier, It center. fourth think also said between to markets years. you got first So, product business the by but wireless which the – we've and in in the and to that cycles see after data draw a had next the but that that probably a in will our all of growth of our just you're now we've obviously, choppier right, is this the like thinking quarter run. than the in

or other would helpful. choppiness Hopefully, more for So, great kind the of in end that's any, AI comprehensive weakness and some than offset set-up of the second half. driven Really Cloud markets.

Matt. Thanks,

don't I to So, you number put you don't want it. a guess, on

you mid-single-digits, don't… like, So,

don't, yeah. We

off guide going but we're most the yet. We’re of – at today. are the companies, line half not we're specifically this accelerate where point, to we not not like to And is, clearly bottom going second

Perfect.

Thanks. Okay, Matt.

Yes.

The Bank Arya question go from with America of is next Vivek ahead. Securities. Please

in Matt, wanted just Thanks for I is year. to the what understand AI question. specifically included this

just year? I think switches million How are much optics, last this terms I this what to that, three what XXX number year, you're you about and suggesting are so million among silicon, optimized And us going your will double electro clarity is was double from of where a next again exactly of think is in for little XXX one a what when those for your around the year including you the grow going exactly that spoke about in included give pieces, year? is that, this is AI and all for the it double, for grow in could about included So, you next of if cloud to or to year. AI three Innovium more? potential year? more So, what

Vivek. question, Great Yeah.

doubling. least we year, know, you think it's – this when So, said about at it's, you

it by DCI know, So, be that. way, some optics, wants think DSP, that's of traffic and working center. almost more, as PAMX stuff of driving of almost, by and as regional completely is on driven the it and we're well to the as That PAMX XXX you plus AI a data lot our

mostly think by So, optics. it as of driven

Some little layer XXX and as ramp next optimized of That but continues cloud bit probably just we're it in networking out optimized, cloud think we into PAMX. you mostly point year, the a that strong seeing then as in but well. really of ramps gig as

growth able doubling the, contribute incremental the little year to through into bit as this next to quantify sort we'll year. both the Vivek, the And those And a get of more. be so and of we over

mean, you incredibly exciting, sort updates. this daily almost say And on area. things fast imagine can it's how It's and of or there's, I every positive. a basis, I'd day moving other incremental dynamic, incredibly in new are positive

the the our those as it. what's think Analyst forward, we of layering of Day. share into the right So, this running articulated really we wins train think several XXXX and but as And start ago, is we said top prepared I more, go remarks, we cloud year, as then on at in it optimized exciting years PAMX we'll strong year and really very next

products ramp. products are months a normally, been to So, now. of then XX XX months know, take some on period we've And, time time you and for about working these develop to to

timing the good. next really year, So, looks

for this for the optimized number it On in XXX cloud And Sorry, is year, year? million then this cloud for so partially is next AI? what Matt. still optimize,

Sure.

it potentially there what So, we those last lot the lifetime increased And higher, think detail, I'd level, million. tracking the actually I is, exceed situation at think, was updated the number was guys in, XXXX at time, number AI. then said, that's given those was but it what now I sort to Analyst gave of of say, XXXX has XXX given XXX and actually what And gave say meaningfully the reconfirmed the just not that just number. we said, frame. a estimate know, going the did a you total we year. million, dynamic the for safe that how we're significantly. specific at fiscal have, that in but that moved a next and XXXX I wins is volume you to percentage which I in has million And when was the what a revenue high we peak XXX to on is, we're we was the then guiding back original, it then of call time the kind design pretty towards you the the same Day of But

see all goes. how the and for this for right we'll So, it's in direction it year then next tracking year

really call I quite know, want early it's a to too don't cap even it and number. You frankly, to

Understood. Thank you, Matt.

The Ambrish with next question is from Srivastava ahead. Please go BMO.

there, I lot you helpful details the wanted actually Thank Willem to much. very side. margin gross a on Hi. very Matt. on of That's turn to

are convicted has quarter, what top it that, of assumptions is in line it as of much sound how because some recovery well, the the assumptions, that the So, just understand – fourth the confidence based So, word, right to on hitting give just know please. So, fourth don't be for the you very, of on about us if kind right? I us help guys it’s quarter? the

question. Yes. Ambrish, the thanks for

So, our yes, QX. we're very back range to in confident end of the bottom on getting

and quarter. products main the really to storage through Some by also out, continue I expect a AI. in pointed seen recovery step we then to and carrier, wireless to down third and We've we the I'd of quarter to that expect then, take point that QX. And through as the that optical Matt really to drivers, the think, strong starting, fourth be continue the

seeing through those in the addition to of as the doing initiatives OpEx that, reduction driving work well all strength pick our supply then gross the our very much internally, we're as year. margin. that accretive We're we're that all are chain. to But And with up that

We expect in our meaningfully impact that QX. all more really to P&L

So, confidence. would that Thank that gives clarify. Hopefully, us you.

Yes.

tied inventory because that, clarification excess a just over to largely said you be the So, would inventory.

fair is it the way to about remain terms that side And is year? is networking that So, it assume behind where towards to sounds that right like excess end inventory? cloud is of of the the the us. Matt, the it vestiges think in on

Yes.

not let out me I of yet think say, the I'd cloud. well, clarify thing. – I woods on completely would one we're

can also the is dramatically, it clear. traditional as up. positive, of the think think kind still is it – of by happy way infrastructure the up is you which side really it the AI moving about say got but I'd back it’s to to way. bit as portion of the is But quite growth, The XX% imagine. So, going up, to a sequential inflect that little We're see

there digestion of would a the stuff. kind say bit be, So, side, of on which in terms additional actually, tailwind cloud little inventory more I'd there's

we're that demand. So kick still in. then shipping under way is And would still – storage

will a took all like it then, own, some you're year. positive that And enterprise yes, the quite our QX in be on some that So exiting done. didn't actions get right, in we

we're inventory So, more when year, it These in exit – all down, the more of so rest the are that in of us we it QX. working it getting rebalanced. driving it's done terms

like overhang, few up AI stepped there's where mean an obviously, that a just XX% wireless sequentially. pockets still XG, and So, then inventory there's something not, some I is

up. programs that, margin. own for to that demand it’s So, ensure top course, we've the gross yes, be margins gross Willem's back normalized of good we But driving in pretty one. terms product of it's just success it have kind tailwind just then, board, was we definitely to of the demand you to been these some rate, point, shipping back of on they And get But we're a that few should all pieces. shipping come when across see shipping of a to normal to pretty lines in there's would what we when really shape on run back that hard be. And our add up, our

you. helpful. Thank it. Got Super

with is The Please Blayne go from next ahead. question Curtis Barclays.

question. taking to it some thought just to Matt, for was I go Thanks AI I wanted the interesting. super of your comments,

about But trying that then new of also you lifetime from that was I to You mean so it understand, your there. view, influx suggest moving shifted projects of us guess, an extra giving pretty XX% revenue mean, have mix seen XX%. that And gave some of come then? an high of the kind then I extra would the out-year out so just a why I'm to of mix year. you us talked you've started that would works And I much? conceptually you're kind percentage this in just of before? maybe

just curious of So, last how kind all this the unfolds over quarter?

that. kind I of to think, of a there's Well, couple Blayne, Yes. pieces

$XXX sort to and now XX% terms roughly time So, is, that going And AI, you infrastructure. at Day. XX% million. then Investor of the was in sized out, take-off at lifetime seen, as for was $XXX of the for of initial we million that revenue cloud an XXXX And the we piece first that design set wins October of And of was articulated the this pointed AI expectations we've really it. sort for traditional had

is – that we that going clarify, two just communicated to ago. apples-to-apples years what So, just with

would I data are company incremental just sort I mean much are And since – are a our would just just year be very and from design those that now that win wins. was level, the expanded in is design at – of coming funnel, have And also we next new to layered are after. not who's the that from of portion cloud design then those those the coming revenue be, with I mean, dramatically this that win I But biggest underway, funnel. number the time, our as projects and add of those year, to reviewing fruition. but now those of just probably clear, significant many

years the can versus imagine of portion where it AI very ago. X or was cloud, then you has the And become significant X

wins indicate a activity our a production. higher AI even X in say number then of the potential. wins then, on ago number And funnel go since would years and I'd extremely long-term we aspects, claimed So, robust. into of terms Incremental looks so that

a, And go think, through. outlook a these takes sort long X so bright X on how this can of flow to in that to where next I years terms of the it to, all all very leads over depending

innings we're I So, you imagine. the can in very think, as here, Blayne, early

the for side. want I Thanks carrier follow that. up just on to

in India that would the you maybe talked think past, source I about growth. of be

of growth, be a saying expectation trying would did change a of quarters other with I to or understand, after bunch regions? maybe your it I’m rollout softness is just the something the it the now in think that India bit. you're down in inventory for just

remain the excited, of to last, It's in up had this step right? you if quarter. And I'd it's X coming QX, Blayne, $XXX it, QX years. kind of were year, actually at generally, the XG is QX way has think we call then virtually which last about big story about. think, XX% had we we talked I been pretty for bogey hit sequential in every almost to and to we Yes, time of QX. We of say, million our we going the continue off probably where off through it over strong And grown said as is, look were unfolded

concern around some at lumpy, CapEx is deployment. station especially market So, lot base the this of a There's out point, pretty there.

XG took lot yes, mostly Some power we're through. we've have able people have to we a new given seen in and already, products, of sort then it, comprehended think step-up XX% this before very but definitely the really QX. overhang, we three that year this in quarters of But I don't we India been a stuff off in and drop see is strong already

year, some think next But we've at pretty people I hot. it's are in growth of much outperforming some the again sometime running we'll in point. in other pretty market. way terms telecom then have been what And been seeing And

Svanberg question from next Stifel. go ahead. with The is Tore Please

and about storage, a the congrats on Matt. had question Yes, turning here. ship around I you thank

think and on could would related how either. is next as AI already going pull-in you, want about some So, some you that CXL, was to there's, I know you don't of much know driving number kind especially for that identify we start technologies, think you a year. that next-generation give for to I it's But forward of because these opportunity AI be now an to hard to

So, us any storage give over in how can next color you could the big on business AI few the be years?

bring good you Tore, up a very Yes. it. point. Got

let's which have, controllers, lines haven't it controllers. tremendous memory we we months, about, for really now. time was be the a especially as earlier, demand spent in I is I that, hard we just talked and systems, on it which one, when it the ultimately, disk We DRAM to primarily have the very said, it to there's something X on these a And a dramatically. in and keep large the scale really going to just needs pretty product of flash preamplifiers, referred out to map – existing that we So, trying lot good and last point drive is tried. storage But over CXL for you

get and seeing of are those of the lot we're a scheduled on pressure is under lead solutions kind need. customers it product strong to we doing pull out from of the And because

in very which extremely segment another the is product us. say over there. that things time. that's it's can So, traction, kind other we've I in think whole happy strong out but comprehended invested to that's in in there's per something not that's another AECs, of a for stool. numbers really next se, I think definitely with category like again I'd leg layer our, there. getting And That's going the that also our year to That's drive progress

of not the that be DSP, more And try it's a customers you systems, a core and hops supplier continue DSP to again, silicon on really analog of all goal sort then, that exciting we to to [hops] optics, lead and that custom solutions, in are as and if can. company exciting, out whether broad-based the mixed as [ph], our has about, all DCI. these ACs, in we're opportunity leverage as the be we we And have area. the there's other So, to more think course, go for really the signal PAMX CXL, we data but have want coming and inside capability of few leverage these And to shots Marvell. those of going the

going stuff of lot on. a So,

Thank you. perspective. Great

Evercore. comes question C.J. next The Muse from go with ahead. Please

half, afternoon in taking the consumer. and through and the A to storage center ramp thank think both Good you really for for Yes. trying second question. the data on and question follow-up

trough, just the was For peak data think million I business that for to controller probably center, $XXX down side.

up, on side, And Is sequentially the sustainable that business about that and into so October so, Thanks in second the July. January? about same year? then of much. into step-up consumer think the should I million And think, that curious half how $XX we is implied thing the

Sure.

take it Let in two me pieces.

So, in the side, data on center did QX. out bottom it

it third it be XXX% very kind in in where up a it point of But QX. QX even recover the even quarter, So, – back like QX, and bit grow I doesn't in will will the fourth don't quarter. more way, think not comes think all QX up throughout recovers QX And it then recovers in getting step-up low. it the of and will half quarter, January very, it little being not but was. at to and probably this but we're then year, in really back QX – it second if of as And it modeling it really the the by – C.J., mostly the

should I models, time, think, just to we're just But at be in XX%, to own over probably normalize. conservative. our that XX% certainly,

will center and the get come one. that's in is, bottom second it's growing QX in the it's good and the better So data off The news half.

funky not those XX% the of side, range this It's was where bit got on normalize strategic is looked There's this probably it in end us. at, a little of two. flash QX, That's should if has consumer the On it kind of you yes, super market pieces. the a some be. QX side, moving for kind low, growth.

if actually of ago, model Just lot about trend our strength. over time. you of to going a overall think seen – years Day the few and it’s point, it's was consumer way a it's Investor kind But our to, to outperformed back down went always is, at model some to

great. and half starts that get say if year. And a in we probably would that's look, continues I second the through next bluebird,

at trends Hopefully, the lower more over way model. R&D got lot time, Investor QX think with is probably about to that's few we lot a the the over talked just and just you we we know, and But second is about half assume years. QX, a given then bluebirds never of helpful. in-line down the last it, Day put You don't what it just of behind consumer got

Great. Thank you.

Ackerman next Paribas. with comes Please Karl The question from BNP ahead. go

Thank a center data Gentlemen, their your quite you. business from uptick was your in ASIC the opportunity from of coming expanded outlook networking TAM how investment much where exiting competes the is I competitor of Innovium business wondering well? division

talking Karl? Oh, the see. portfolio, you're Yes, I about switching

Correct.

Yes.

is out on really that got product would do Marvell right, the but second this, some reasons things a get spend And question to why do get that? traditional seen cloud Do of lot much investors other of I'll a way or I less definitely mean, going which have, repositioning there. and one that? to I that use see solution impacted example, We the that they've Karl, maybe one side? or I kind then you've how about of CapEx say, line. infrastructure you about by happens take like an for No, a sort is, Okay. maybe very hadn't just if shifting bigger mean networking think all answer, companies. Does of the the of by this hey, that's to optics less traction AI, of it the just spend? what reprioritized, switches, aware to as get just think that you we – can

left be of think actually amounts badly out and centers between of make that the going spend entire sure of the the upgraded. dollars growth is AI some still to the the our also to and into the inside switching that's back portfolio AI centers, But that's for needed the to all, all is see which, bandwidth move to which say, But connections the if platforms, traditional in as just I'd very the way, of vast see the to that obvious CapEx you of and go sort be still trend going So, front-end first move are network those required about data definitely one, by includes our that infrastructure, going we that's to get that there. needs – all of data well. will we data strong

broader product half We've doubled traditional So, strongly in and really portfolio see growing I next this this portfolio line. with in area, technology. map. our managing We're of higher taken reporting even brought is think very cloud optics road second year it. and switching with directly manager our our a that still it We Innovium the combined We've who and me switching new optics We've organization. networking leveraging of long-term, the infrastructure part down co-packaged year of to our general layer Karl. we switching was all

how with lot So, XX.XT, very excitement, a looks recently, is of announced which at our it of lot now and first it's we're back. X-nanometer, investment, and in we a happy product

I going and We exiting. higher is for, that market layer more networking the a real don't any people a So, look high-performance, to all growing just going competitor from Karl. market, all We grow that's opportunity see large lot. there's impact provide well, think, technologies who the a growth to at

follow-up. in Could I hyperscalers, houses debate opportunity ask about but helpful? another AI the a landscape programs, like extended just winning Thank sound on revenue perhaps different put the from altered finer you. areas of could that offload if dynamics of AI. view There quite AI ASIC could that, you in today if Perhaps you spoke would the some discuss helpful. has point competitive very on be it your the you design that That's you your have doesn't in see of long-term been given compute AI, designs trajectory of China competitive Yes. but the

wins as we expanded, signed little we're at a and have few I yes, maybe years which we think, we thought had we appropriately. yes, developed. time, developing thought a you sized Well, we even comments, appropriately, have already them are got I the conservatively, those products think the heard Those but from our or ago,

kind thing of other it of And computing. AI, look there. custom compute and but so design dramatically the of in and the win offload lot I expanded the that's a I at And is is across board sort that, acceleration, opportunity for that's funnel, already guess

X-nanometer, you X-nanometer, a U.S.-based these is a concern systems. competitors. And at some for that national point, companies standpoint, from in bleeding-edge strong type technology, maybe mean, to of nature belief of type I'd of portfolio, even you this of able presence, that the invest say given strong overseas criticality the it. IP I just mentioned competitive like technology road have of security potentially types like the my name the AI map, and

into can think and it. one long-term, to Those have going is capacity to are high that really, the going at just companies of scale do probably level. design there. for able are the out a of and largest the may question. just I these Thanks really only to There the the to ones one-offs not but Karl chips, win compete do there And couple to that. that be But and them look here suppliers volume them. manufacture scaled are largest support up Appreciate to that – companies the be and Marvell

you. Thank Helpful.

next question JPMorgan. ahead. Harlan comes The from Sur go Please with

taking the question. question to Thanks quick my Hi, last good a on for just switching. follow-up afternoon. Maybe

high-speed expanding so And chipset, just significant on blocks, your right, silicon libraries, do Teralynx switching might October, have I team Matt, I X-nanometer on So, funnel cores, at samples silicon to the or design their the XX first customers? Did wanted right? I but ship then is idle [indiscernible] it building performance any next-generation the back was your last clearly XX.XT think feedback think you ARM-based announced team to mentioned, this library. you win pace, as mentioned a IP get verify. you

engaged So, design wins on is already on starting has this team the X-nanometer? funnel, and new expanding win design already

of questions. couple great Yes,

Teralynx TLXX the looking we It's call think first which pretty product good. I in is hand. product, the have or one XX, we simple,

able all a I’d well. of to, ourselves to activity product the bid frankly, X-nanometer. where ramp best of X-nanometer, X-nanometer, Harlan, fast positioned competitively readied That's And demand similar with at best as say, have we can. lot the well We to extremely there. I'd time really the on pretty say And going to up, out we're right today a there, this try we on as to of be quite lot to

to more be think power, a conversations. ton cost, weighing I'd of versus going all are in – needs I think just said about steady we're X-nanometer though we're a say more – sort as automatic. of to workhorse we going to be continue would those when think a really say for I sort customers be of of choosy X-yards long, I long And timing, general, and to previously, kind in time. leading is you there's just that lot I to this activity, in general, technology serves of a it's it going schedule, the that used very get and performance, the at, be edge this just whole to

you when and serve. to people XX, you then went – that they of going just jump. just, the went these of You then XX, was from place went terms to to went think you then And sort it's I just you and you XX, in each like, application is set to of have their

some But major almost end across on the pretty discussions both. really well-positioned our middle certainly we're exciting in of well So, for X-nanometer, of we're all markets.

for the Perfect. Thank you Matt. update

Thanks, Harlan.

maybe – questions, couple we and think then more it. I we'll a wrap

from question Cowen. next go Matt ahead. The TD Please with Ramsay comes

you here. getting guys. [Indiscernible] taking Hey very Thank for much questions. my

appreciate So, it. I

I So, for They're questions two different have you guys. unrelated.

snapback spend off China The first notebook your the confidence mean some here be is, a and more return would just understand of one just certainly, sustainability that. that that this, recovery, trying in growth. is in pretty in markets of sort could I of little color bit to like concerns in is bottom? SSD helpful. of it market, pace some us enterprise, I'm give the seen – a given things sort driving like color you like on short-term, ability maybe guidance are consumer there of seems strong or the there Any certainly just the of of And

these, been back-up less. And I my But in hear question, encouraging the second storage to the if pipeline. few to obviously, And XX,XXX-foot correction seems pushouts. design view, guess and there sort in of you near-term all was about against really like win really, more belt rather have guys be that and I'm things OpEx investing seems to tightening cuts trying really momentum than time it and has like to momentum some still and you strong, be business really, the would other the done, that juxtapose which this a

just I'm makes Hopefully, square So, sense. Thanks. circle. that that trying to

both in and on the Totally. Willem me at Yes, let answer to if wants one jump second can. the end, he

we one, the number The would customized about wouldn't I business storage really this consumer really into – as limited average it's that's hey, kind plus one, read sort of evolved has [ph] think half, wouldn't this] much probably said, first out, to way QX products. earlier They're think bit of there's a little that first you that may lumpiness. I have been [security how of QX, say. I is, through going of just where I And designs, that basically On yes, the – Matt. a somebody too assume

We that, with were half down, of in be down time, in second QX. if trend for just in-line us should QX. over model. down in But Investor over the Day and up consumer kind will look It's kind you half our it at half, of back going

would But I view would on great. of I take not ago, it, that sort designs to sort are something R&D of time does a put going. consumer wouldn't These it business. bit from of little a anymore. it very our in just assume demand. So, on better, be and I just a bank it's And not if put lot QX, of – keeps there's cash conservative kind and check. the that, away a some We would that the just of we dynamic QX funky

I read too into that. So, wouldn't much

asked OpEx. the you on glad I'm

just can in. you and take me Willem give chime Let my

Marvell August, in So, annual of strategic we when – look, kind every our September. usually plan do

Interest major of is last different. that and It's did between And in world our we then, changed. of some what's changed so, now year. And the the different. are really The has terms happening customers. economy market dynamics, rates with macro

sort year of right? summer it, of name It's versus You last now.

very always thoughtful allocation. we're R&D we capital so, And about about think how our and

that it's future mean, things going be I changed. important is not. mind, to do, we lever That And my our or really okay? Matt, the thing, in most have

customer we the And last our we estimates, business by for at extensive the decisions in changed. review what quarter, number or some to programs original least they were it. posted all sponsorship were by wasn't very we did compare so, unit, they really or methodically how at the programs where the line, a of flight there made on estimates their plans last of wavering very looked our And time a product

you've got this AI optics, same you for it. name things, And at the time, type demand surge in where inflection huge of

spending pretty so, done our in repositioning And aggressive terms of footprint. we've some

than almost more R&D a We've exit allocated our a footprint see so, similar an incredibly we're areas the where I today, as a we're at of the than of growth. R&D healthy but spending larger And running level. it's lower sort to all able just even we or lot year OpEx peers we're of, activity to in more percent of some key mean, size. of still of and

it's lower in that some individual In by level a group I group. up certain an then than group at on cases, some example, cases, was of a end legacy And it mean of groups IP. they dealing up, Maybe It's product maybe two just that basis. their as the the joint in individual all teams rightsized over sort end sharing we've we're took with And we unit our business. different. our same and running just is at processor new getting reality before. business more time, We're an We're together. kind those ASIC custom customer, meetings efficiency.

that, And you so, to I made was think when into which you which decision, get combine organization. savings. some single do typically Hussain spot-on, those is efficiency Raghib And a the

So, year. exiting company the in profile confident the very of OpEx I feel the

of in. companies a right, now terms being the doubled, the very we're effectively we're pre-pandemic we We lot revenues. of years. more to acquired from getting there] of a about frankly, in over do conditions judicious for appropriate it's had how couple And quite [ph]. think it. few Marvell areas [growth just I we The growth last of kind are and

kind run through that, a with what And in we systematically really at spending it of enable these a and profile of level with kicking financials year need really company OpEx setup for new run the tremendous as so, through, to drop in. with do and there go get leverage compelling was bottom opportunity wins we sort of just line to and look next some to design to an this

And just rate payroll going tax ahead, kind the growth thoughtful revenues for way. would hang back improve basis. keep QX that's at that the our opportunities as we out year, right the merit. at next evaluating see we really where But of about. systematic take the a so, normal in, normal and all we'll layer to in And look, Willem kind on now, which least we're this a exit as be and And talked some QX, There'll probably, then first time. in step-up half be of of

sacrificed next going through, not but through revenues we'll and right it, flow have and we're strong gangbusters growth have at drop opportunities. and year change things if to set-up a any now something sort very Again, look of

I but the want team cover answer, it Long whole did out investor to for there.

Can get please. question you last the

last the yeah. question, That's

I there's one think more, Matt.

from ahead. The Srini go Raymond James. question Please today will last with Pajjuri come

like squeezing curious, your macro Thanks has next half, year, the at which you're very right XG as of point And where softer looks enterprise of we kind last in obviously, guiding and enterprise, sense. years. exactly a is and most in. they've encouraging I'm of Matt, grown into just for, Yes, second for the couple somewhat go world not me the XG. it business now. thank networking you. strongly is carrier, in the now makes

the in into next growth thoughts first we segments about you're So, go year? half on just the curious to of as thinking those how hear your

we've on I got of kind Sure. Srini. view these, practical questions. And Yes, great very, think a

ASICs. at progress mean, indicated enterprise, really we outperformed in new XXXX. to content up, we of in gains, like you your on share like I business question, part Investor on think So, this great our actually multi-gig of as things things the your is ramped Day gains custom set Lot I added expectations relative

the but was because market business that also sort doing. own outperformed outperformed, good, So, really but has of of it's our because

so, correct. time, to And for some it's we've been going saying

– of But is I enterprise, year-on-year of sort of inventory flattish. more. even if if think some in there's It where at that grower quarters some down at it a next to it's story sure, there'll yes, do got than of or kind if not kind QX, you – QX. couple will. – And normalize be however it it's last or year, from I it there'll and least underneath, but quarters this of be come have, takes if thought least year you've at it's better year, long down clearing. strong there'll be got we correct. it, But did still environment in a you, We've sort will think now saying of it's you of we're sort for look But a we

deployments especially I on worldwide. carrier, right think robust very been you're on overall XG. There's

You have us. time, things front market still are content be At that and the more will there'll overall, think still in other I the down. this gains got like India, do But side move which year, year. next probably we same of regions happening

that's kind socket an little bigger of at ramped. that So, least There's offset. still a bit of still one hasn't

it's content through do still pretty year, our think pretty we think going But content we've visibility is XG. this look, I quarter story in good So, that, got third good the of after some year in kind say, but early, then bit of there, next at little we in it QX, drop is, where point, have and to up a too. I'd ends layers that

like helpful but stay hopefully, pounding So, something modeling. continued actually picture, growth in time. into that table these telecom to weak XXXX. we're to then be wired, And to that's not we're pretty drivers We're for modeling going kind still paint a the of some are it

takes, there's So, puts obviously, business. in overall the and some

Thanks it. Got Matt.

With want afterwards. backs to But make We appreciate I the think wrap and forward I know. to to everybody A we that I we it. lot questions, participation of everybody's call sure could today. talking all. them we look answered

very thanks much, everybody. So,

you Thank question-and-answer presentation. for today's session. attending our concludes This

now disconnect. may You