Marvell Technology (MRVL) 7 Mar 242024 Q4 Earnings call transcript

Good afternoon, and welcome to the Marvell Technology Inc. Fourth Quarter and Fiscal Year 2024 Earnings Conference Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Mr.

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

good Year Welcome XXXX and Quarter Marvell's and Fiscal Earnings afternoon, you, to everyone. Fourth Thank Call.

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

made posted me expectations. the today subject Let Please significant uncertainties results do the on earnings our press review our which SEC in and as cautionary today with most forward-looking could risks XX-Q and that from to to everyone website certain differ to contained XX-K include statements, materially factors which risk our remind our our we forward-looking release, well are not as and cause actual filed and that statements update comments statements. management's recent current filings. intend We

held refer on reconciliation Investor investors measures. on non-GAAP event, our financial we for see look growth updating to will to accelerated will in Relations and the our non-GAAP today, from for During certain April forward us more between exciting ERA is GAAP of the details. accelerated New our A opportunities release available in section announced infrastructure measures Investor of to today, refer be in financial our the website. Earlier call we our press we which the Please We XX. in front infrastructure. York AI

now Let Matt? call his quarter. over turn the the comments me to Matt on for

everyone. afternoon, good and Ashish, Thanks,

X% sequentially midpoint of fourth quarter the fiscal XXXX, billion, Marvell above the growing of guidance. For revenue delivered of $X.XX

the earnings of plan XX% we sequential team the reduction execution in earlier completed a growing In in gross on a addition, substantial XXX the on increase $X.XX, year basis per point basis, drove sequentially. non-GAAP delivered Marvell OpEx share and outlined margin

tell we operating another in you quarter share increased also will of drove repurchases. detail, Willem As cash and strong greater

to guidance, XX% driven $XXX market of record XX% what center by the year-over-year center above results our data sequentially. The quarter, portion and We a the market. environment. In growth macro data growing in for million, these drove cloud revenue was you remains of quarter end end our strong revenue challenging to fourth report are pleased we our and the

driver, quarter, next AI that cloud every see been am I that and grown infrastructure key While standard we has revenue a also continuing has our year. growth pleased

in Our solutions fourth led quarter. PAM XXX-gig our growth the

benefited also for We from our products continues its center sequential Revenue market of from that our the storage higher our also portion switches demand Teralynx, quarter. end as sequentially Ethernet in recovery. grew data

XXXX. of Turning to first the quarter fiscal

on center percentage expect to a overall grow in single We data basis. digits our revenue the sequentially low

both cloud grow AI centers and to project cloud standard continue benefit seasonal continue [ a are expect our enterprise We decline revenue from be from than ] the silicon to from also growth, expect and to revenue our data AI strong, in revenue to more Electro to we of optimized this sequentially. optics projecting initial we data offsetting on-premise centers. Partially programs. shipments We sequential

the data are and technology, a in innovation. is Over past new to through infrastructure. shift several center invested strategically become lead and has actively market of acquisitions of to The years, wave driven by opportunities, seismic accelerated both in investing critical the we the organically next enabler Marvell AI creating

platform, the our of compute, interconnect, full data uniquely and We one-stop suite into have ability together true switching for solutions a a unified center a data these in customers. across place and stitch center to shop

X.XT PAM for AI XXX-gig workhorse solutions. customers lane XXX-gig currently per PAM our next-generation data XXX-gig are per begun qualifying products interconnect Lane our centers, the have While inside

cloud customers a to electrical PAM we Marvell completely This be to and X DSPs start products for cables. to end year. deployments for of ramping is first new optical our Complementing this expect this expect towards to start shipping the year. interconnect additive we expect active and We solutions, market multiple Tier our

ahead Our to data which cloud see provide from in do between new and data centers. very well. DCI opportunities success our build We us new continue exciting driving to AI are products, customers applications, to critical of centers customers' connectivity growth generative

uplift data increased We expect drive will positive inferencing, investment in a bandwidth more centers. which from also between

We in XXXX, volume with customers. in you strong design our at our to significantly shipping customer multiple base seeing our also we data XXX-gig center interest and today are are XXX-gig for report products to DCI next-generation pleased I'm products. DCI expanded that high wins very fiscal

begin expect ramping We to next year. these wins design

remember you has technology been will our a modules. enabler calls, photonics from silicon As DCI Marvell critical prior of

very AI enable about XX.XT next-generation center Teralynx deploy track are larger products plan This you successful shipments more photonics for switching in XX.XT particularly line, ship our development density, carrier higher team field-proven enterprise deployments. product and Combine volume to this opportunities, OFC our next-generation to our switch hear acquisition. and event organization. at later to lower recall, silicon address how switching, enables our we our scale and on Marvell The accelerate continue we will will our high switching power data production of the Innovium in Teralynx year. AI to came Marvell's for upcoming cloud Innovium to with You now new technology interconnects. In from

funnel both opportunity new expanded the over We has existing cloud encouraged by traction our dramatically are are customers, the and we for switching year. with past seeing which

set platform. silicon first Investor cloud the significant our outlined last to We're with optimized design wins of our seeing Day. progress Turning during

bring compute quarter a we these expect for and the well, in to and year two of AI view in both on are fiscal enable have now extremely We of demand programs for expectations shipments the as up Customer to well for the track second XXXX. going the this production. We lockstep volume start of half fiscal substantial in initial a ramp are and year. first on working clear them very programs our as with tightly aligned is fiscal

working we our for with We capacity closely been confident ramp. and that suppliers secured have are have the

are scale for revenue this long-term Marvell the these for have we we visibility along very about opportunities, new programs, from now with business. of potential many the excited With

As to data potential fiscal which, the XXXX. rival silicon revenue run to cloud rate, optics grew design fast-growing business, reach wins from annual its $X in initial has for over we billion our set the of full optimized reference, expect center

With optimized has investment and computing, AI exploding cloud grown in for silicon significantly. the demand accelerated the

successfully a design chip our of well and engagements executed key to designs multiple increasing last substantial in strength and this We in many the the size with have driving for X-nanometer the with AI ASIC new engaged X-nanometer on two These years platform. partner as cadence increase is of customers Marvell's releases our a customers cloud proven cloud opportunities. deeply are plays new are a funnel.

broad high-speed differentiated packaging, compute, armed storage ultra of including a and suite including security, interconnects IP, have We die-to-die chiplets. SerDes, advanced and

cloud for multiplier custom We are act to scale programs positioned succession. quick multiple customers, a to them as enabling well in force our

let Now me markets to together. turn Marvell's and enterprise carrier end

of been end a dealing been industry period soft communicating, these have have with markets we As demand.

sequentially networking again result, quarter enterprise and in XX%. from in basis, first first both were and the fourth approximately we carrier a XX% a decline As expect in quarter. them sequential revenue to by down decline the to decline On we by approximately expect the to quarter

global second first these to Looking after markets, be fiscal markets quarter enduring end the year. half end us term, to recovery of ahead, declines economy. in are which expect we are and the the large Longer the critical these in forecast a revenue and behind

a markets each product eventually over basis an Marvell-specific normalizes, $X to of we realize in both upcoming begin to on and these As to once end cycles. revenue of return annual result, demand contributing expect benefits we billion the

sequentially declined as in console Revenue This the projected end market. in completion significantly expected demand program deliveries consumer the Turning reflects for first to quarter the an end-of-life weaker the as quarter. from is and quarter approximately as prior well decline forecast the XX% the game market. fourth in of to

to XX% million, in end automotive industrial Turning $XX sequentially. was year-over-year quarter market, declining fourth our and XX% and the Revenue

double on driven As quarter. in year-over-year delivered by basis. expected, was primarily XXXX, the in this digits end percentage automotive patterns Fiscal with our sharp revenue year, order sequential decline any can the in lumpy portion of growing given a another a market, industrial be where business the strong weakness

We are new a bandwidth. We've swath design coupled Ethernet accumulate OEMs. content need broad connected for the in automotive an in number with of driven in Ethernet across Marvell of benefiting continued to by more the from wins growth endpoints increase cars,

While also on automotive have we wave revenue to internal our high-volume be of covering and EVs the was vehicles major now initial hybrids, driven auto nature, multi-platform with numerous primarily wins combustion by tend models simultaneously. in These OEMs.

revenue quarter fiscal flat of forecast now expect industrial we and our in XXXX, to delivered to $X.X total be end Turning revenue overall we from fiscal of XXXX, market sequentially. In auto the summary, for billion. first our

more to about from company accelerated fourth first the total revenue quarter the than the throughout growing center revenue data half Our X/X quarter. in of exiting year,

growth we traditional underscores expect continue to company. investment forward. drive majority to shift a our customers data to infrastructure center into revenue This AI Marvell's going the center leading transformation data As transition increase was from prior our above accelerated This growth total initial center a forecast. our over a well X% data of key approximately in the XXXX, revenue, fiscal of in from company driver contributing was year. XX% substantial of

the revenue Our strong $XXX for this the million data trend we fiscal end In another year driven well mostly with market. momentum to over fourth year AI XXXX, fiscal Optics. continue in from our driving accelerated center throughout expect quarter,

those continue remain revenue a expect accelerator grow, we to benefit electro-optics expect from We should correlated substantial accordingly. base to as AI to And shipments. of

addition, project couple fiscal of million XXXX. estimate AI In significant well optimized we dollars of in programs excess our of from hundred our prior revenue cloud a in contributions

expect cloud fourth optimized optimized cloud we exceed our as exiting fact, silicon In overall million programs high-volume revenue our quarter. reach production, to AI the $XXX

million momentum the provided expect in overall run Day. target had fiscal result, a XXXX, continued the In in last the revenue full rate a and see a year, of annual of $XXX contributions our setup by growth second Investor fiscal carrier, we end market, on of enterprise ahead growth our And recovery to this year automotive, consumer. cloud way with half center put optimized be the silicon this favorable our and would driven prior we at ongoing a basis, above for aggregate, data target. from from we As

we on drive continue cash flow strong As focused investors. returning we to remain growth, and revenue capital to generation

inflections one has saw opportunity. on our approved of thank our capitalize technology the in As Marvell's remarkable repurchase history. of strategy dedicated the the on our most our emergence all today, earlier leaders executing view Board employees as time. I this to authorization for largest We significant accelerated infrastructure of fully and you

we industry, workloads. accelerated destiny During to [ the we ] deliver will semiconductor enable power X-nanometer TSMC today, period long-standing control in the a our platform of infrastructure. tumultuous new strategically first Earlier investing area produce with announced industry's extension have critical for to collaboration the are develop for next-generation win. to taken semiconductors our of performance, technology Marvell This advancements to platform accelerated for optimized substantial and and

very our to are I'll We AI City. With us look of role about April to in updating infrastructure. New ERA and in our for opportunity outlook. on optimistic the over and that, in massive our for investors forward more enabling front growth the Willem results recent XX on our the call detail infrastructure accelerated York turn event at We accelerated prospects on

Thanks, Matt, good and afternoon, everyone.

diluted year data center data over of results. operating Let performance per center revenue delivered $X.X half half. a XX.X% our negative half fiscal margin share end margin approximately our from was applications, me was GAAP start second first grew driven our market, gross with GAAP with GAAP was XX% billion by and XX.X%, $X.XX. by in loss a revenue AI in the the strong summary second Marvell XXXX

dividends gross returned Our per XX%. was buybacks. $X.XX. margin And and $XXX million earnings non-GAAP was was We operating margin to XX.X%. diluted share through shareholders Non-GAAP non-GAAP our

sequentially, results Data our the was largest a midpoint quarter. XX% was billion, was sequential our to market, revenue. largest had basis. fourth driven the and carrier X%. was enterprise XX%, we XXX of gross networking expected. with for better XX% financial our growing XX.X%. and growing at on margin gross the year-over-year GAAP by driving X% was end in Moving by industrial margin mix as exceeding basis a at of XX% product guidance, at significantly infrastructure total quarter XX.X%, Revenue next Non-GAAP followed auto points and fourth $X.XXX The consumer on center

acquisition-related we non-GAAP in Moving million, plan Non-GAAP costs assets, operating results the fiscal the GAAP were on These $XXX million, were XX.X%. completion GAAP had intangible margin reduction and successful our reflect was cost of beginning operating including expenses the year. operating compensation, our at operating amortization guidance. negative with margin outlined XXXX acquired X.X%, was expenses $XXX to of while of restructuring line expenses. costs. operating stock-based

share diluted growing per loss GAAP share $X.XX, quarter, sequentially. was non-GAAP $X.XX, diluted fourth was the For income per XX%

in $XXX cash to over balance the million, turning from pleased fourth Cash report straight was our to quarter, flow operations million. you Now I'm flow second flow to quarter delivering of operating sheet. and cash robust our $XXX

inventory the $XXX was decreasing Our of end million at quarter from million, fourth quarter. prior the by the $XX

from Our to million DSO a by was the dividends. through shareholders XX prior cash quarter. day returned days, $XX decreasing We

the addition, In during repurchased stock from of quarter, doubling prior $XXX million we the our fourth quarter.

expect quarter of the We in fiscal first repurchases further increase to XXXX.

Board As saw you repurchase billion. has authorization billion, increasing $X.X available our our authorization today, earlier plan total which by the history, to Marvel's approved current in largest brings our $X

total billion. Our $X.XX debt was

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

were of end million, As cash of $XXX quarter, from quarter. and the million equivalents increasing cash $XXX prior fiscal by the the fourth our

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

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

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

to non-GAAP to range the XX%. We XX% of in margin expect our be gross

forecasting to cost are gross non-GAAP margin revenue decrease impacting sequential lower absorption. We in a due fixed

Looking level of gross remain the that key we margin our will forward, revenue in expect any product quarter. of given overall and determinants mix

our expenses be seasonality taxes step-up increases. to be our quarter due forecast operating million. approximately $XXX to million. payroll operating GAAP approximately and For We typical This employee to quarter, we expenses first a merit prior anticipate salary the $XXX includes the from in non-GAAP project

on expense For approximately the we first be other quarter, debt including million. income to expect and interest $XX our

non-GAAP our first rate expect of the We X% tax for quarter.

weighted diluted outstanding of loss share shares diluted $X.XX be GAAP to $XXX in to a basic weighted our million. per $X.XX. range $XXX million our We expect shares anticipate to and average loss outstanding be We a earnings the average of of

diluted share please the $X.XX income We Q&A you. the Thank line and to in $X.XX. Operator, of expect per instructions. range non-GAAP announce open

with first Deutsche Instructions] will Ross question from Seymore [Operator Our come Bank.

side and be it's not much. two AI center so tale cities, the of kind going is of a strong, Clearly, the it to really data of rest

versus just something going it cetera, of cyclical just of ] of data get shocking. kind XG, to the et that come So your of why what Some using you first. then we as walk through way snapback you the should news magnitude The don't is that us ensue [ not medicine how is of taking the do are ex thereafter? much a out the the drops Can bad center back? and view soon just

a definitely Yes, tale of X cities.

that's those side, the consumer the The We're drops time, way through. and sure, peak, about about long been together, in steep in this enterprise of and $X.X supply downturn on. pretty seen billion went doing their during is and you've the is, going cyclical be to would of chain the sort both carrier way what some the about to revenue, at in were we're businesses pandemic think that of that happen, On and definitely so a are QX the industry, issues think and they we've it this have QX. going through a I,

now shipping that. well we're You below can see

these both $X And these question to for Ross, X revenue. very life is prepared solid typically businesses, will recover billion Marvell. time, in very greater like cycles, product years And Both I over remarks, are said as than long in are in the of remember so within well, my production. when. these businesses,

won just won ago. are them cases, we X ago, designs. In years some a these we of So X or X or some X, year

when they of due going be some to specific, we but us. So good to product normalized And drivers about back growth share do behind that but demand very expect growth these drive softness enterprise a to those or in going any are to of feel run this and businesses, correction, And we back carrier inventory segments, is and see in none business Marvell we "coming recover not have both some through things rate, forward. fact, loss". that's to

managing So it short we're through in just term. the

The question will Matt from with come Ramsey next Cowen. TD

business. kind guess of the on custom question I silicon a X-part

is off and hard being the on rapid how technology space. idea to of space's just years but programs might out evaluate sense. would as I'm trying volatility with that sort trying the quickly the when you of advancements those map those how makes lots goal, shots shipping be maybe industry probability of for gave size do wonder And when as innovation. how won us it, you X, for of guess the Hopefully, is business just a how pace large you've expected come? And is evaluate than of happening scale. orders you the each observation road more will you the business concern just billion [indiscernible] or my the Like the how piece for second the business get years rest in X, 'XX the question, what's year part taking given your to with kind good and first very programs one there the X custom in you the of and in the guys of this figure ongoing that is scaling $XXX for $XXX given gauge on in and of could all shots today I potentially an be the guess moving. you million AI But if probably those player the goal out opportunities [ be that you're X on successful or color given dominant at ], that, of to exiting see larger business circle the million of the more referenced trend. I you silicon could The I shots my or dollars for square fiscal have Matt, to [ some in advance a each X the on and goal part of to of script exceeding guys potential b align those and ] of shots

Okay.

just them me Let tackle both.

first years a the yes, on of about super custom now won one, the ramp back. silicon the seeing we On excited we're couple programs

both in being at fantastic. and shipping on It's in sort this we don't million point, from some the QX way programs, then cap prepared as want plus. I to the about color exit the we're certainly, that it So $XXX rate We go floor, there. think remarks on gave the that's of to but

we're and seeing So still much $XXX obviously, had in we a think forecast And from from that early than excited still fiscal but customers. million the the 'XX, I bullish dynamic we're imply, our larger called out. would again, number it's very

looks from we've the plan way programs strong be ways very we we 'XX that So articulated and ahead the of a won, had should back. that

I that's day. the said, right a question, And that's as creating more about dollars talking win be yes, custom specifically sort that's TAM optics, transformation us. But second you I very in silicon, data this in of going merchant ever of and On center think for AI view tens I the range. going creation in of to significant in design now, custom as architectures is massive about And opportunity of seen that complementary at front this billions it, activity the being of that it, very leader don't I've our in this the mean, AI, to space. on career whole emerging talk we're my opportunity we'll more portion that on networking name Marvell

needed. for a I the it's I scale a don't of required, zero-sum saying have that's think while. workloads this place are computing think And been game. the given that both I've a given

both to to side side as I grow are segments, the well very as enormous TAMs. the think merchant be custom going

and the the we're on right yes, in opportunities so all And programs. major mix

robust incredible TSMC technology. next have with our AI computing announced the address IP full road specifically for team, of generation. and very an to an We with today technology a map and of partnership portfolio We continued accelerated assembled and applications incredible

So that's got customers with excitement of the lot a as well.

going few years very a overall, So that opportunity are and we we're creates this a new on -- the to Marvell certainly huge whole we bullish, think have yes, and TAM the all lift ago. for really just didn't one boats

The next with Susquehanna. Christopher Rolland question will from come

opportunity again. guess, giving for the Matt, numbers I ASIC first all, custom of thanks

strong I down you means that drill guys probably a think pretty more. pipeline. little love to But means would have that I bit a on

at do all, So just you sauce that that's driver those training really a these I of the landing versus leading maybe guess, special IP you the as compute? that your kind there SerDes these? that how first perhaps Like competitor can see inference, edge something has wins. opportunities, -- time, of secret winning And are you Is have there sauce of have what's used you then versus a talk about some these?

this the it's was. that that there interest numbers year helpful. a where was the is. in Investors hopefully, what size were some think that the to of now last Yes, got start visibility, year, lot and sort of we've And of custom of articulating we great

a to I us pretty going the calling your on we're second mean okay? And in inference be think years sort I'm we our it. applications, -- bucket of ] think terms X I that Chris, know versus relative At in this it would for piece are call designs think I slice just is 'XX. out. in I X-nanometer, to X-nanometer X was and road all But opportunity partnerships it certainly of of relative even even to TAM that I which And we set we don't to the back your exact to was SerDes large and those if strategic in significant where fruition When this at would on 'XX it's in funnel point, of then us as purchase put technology, is about we during say I crosses first origins win opportunity don't time around I'm especially won, split. Marvell our that compute. chain, XXXX. enabled very that The after astonishing this where of prepared competitiveness, question decabillions to training in of [ know to creation. you what this won close really center. share from way fiscal a competitive, supply part a in data here packaging We which big our up business set business, coming the it and down followed ASICs and to XX-nanometer competing time been that now though in of and to in has all to X-nanometer the of first up compete Avera interconnect, the and right that this of our manufacturing in with dependency our the was map now We segment, pivoted go technology, technology we're out, our scale, in platform, today. of the the

about We different are leaning okay, position packaging, the relative to SerDes had the not just we and really chiplets their And really that, in this them in on we're of to with now look completely trustworthy learnings, think readiness. to for a needs And technology, mindset long-term we a and of in how our now solid, our top realize strategic scale to being partnerships, but together. had partner nanometers, in, help and we die-to-die of X-nanometer interconnect, like stitch really optics because first really around terms silicon AI the their an Marvell all incredibly ambitions. customers

today. I future. do Thanks. do great in we're and we great we're on X-nanometer, we on that's So did where going to mean going great X-nanometer, the to are

The Company. Quinn next from Bolton Needham come question will & with

coming the also margin I at to look at follow question on well. the that to going pretty certainly I'm It have the guess costs memory. high-bandwidth But as you integrate perspective. it cloud but they that Matt, a extent you may I'm up there's some ASP, through. from of significant nice the these pass on ASIC programs to does to things a side compute cloud

especially ASIC corporate to are margin which that And the very, with changing as can follow-up, it if so the quick then strong to know you optics, ramp you to mix in. see I've do the similar be cloud ASIC margins does this I good of And how about a how got can now margins, programs? talk get sneak cloud ASICs And on wondering, of I'm average? platforms, gross ramp, compare you size these some in if I very the

little happens large volume margin [ business to is Sure. in and a company Yes. same business, and margin still be drive the that happens about margin gross business average really strong of would model. a is to will the lower nature gross scale to we've in if ] always what remember, time, targets. company storage the I gross total. I profile. way custom we the ] that to tend in programs, in the in the due to the just the given got Avera line you've have merchant talking the the over of would these very, this nature the automotive. same and mean line sometimes actually time, you the with opportunity OM we'll say, on When lot ], and very than start very it margins at operating receive of overall talked leverage of since part [ about competitive NRE that because follow-on of company nonrecurring though, at the always the due programs, overall engineering GMs the funding on the be as and time, that because businesses customer that our target. of At be the lower of we see very a these and And XXXX networking, But sort bit [ than model of business

now. under-shipping were Some right of those demand even

stuff. plays back custom year to some businesses be that some a the margin of and should as the those of So out, of little offset bit a will come

target yes, gross especially cloud [ lower these stuff, we're our model. long-term But to So ] margin. certainly volumes if the managing still

[indiscernible]. You got a quick got one for the we've second? it, We can otherwise, to do

second. one on quick the Yes,

of AECs sort multiple mentioned hyperscalers ramping at You year. this

Any some us ramp? might to give able on magnitude sense that of wondering that Just be you if sense. Is meaningful? the

Yes.

that I think Inphi, what some time. way on goal that back sort a we thought We say shot absolutely for we is real possible. market. Even was acquired a was felt I'd of when it's

fiscal the of 'XX I full solid really big an get now this think we're very and go where year. older based in qualifying is news year-ish additive PAM We'll wave category is high-speed modulation that but incremental starting which inflecting technology, a before We're which of the into more at leverages now. to And didn't our ramp to techniques hyperscalers on high-performance nice, production kind DSP definitely it's Marvell. in it was really this we or it multiple AC participate.

let's really more yes, let it, out quarters. but it for few about excited play a So

Piper question will come Harsh Sandler. next from Kumar with Your

Matt.

So AI no there's is it. to way other put hot,

business? say do expect time to bottom you bottom of the consumer Matt, see us the [ You ]. business, it? think kind you and us or you off kind a of helps give expect bottom like the And in this from piece frame, year? pole for kind will And XQ? also XQ your you last is that either size a optical the be position this some come will networking in Or steel come the are can the the what that with do you pieces in in to bottom you when growth Anything size [ magnitude of what of sense off us Can XQ? rate provide of then, of piece the ] piece quarterly all pieces of

Okay.

one, first Let second the me take let I'll do the one. Willem I'll take and this.

and the $XXX breather some bulk north answer if first I AI, that, you a it, right, take on color. of exit And good can was QX about of as think question. Yes, million. in the gave your the optics. you we also well mean, was we can said, one, on he I think rate So can pretty I

that and the start then you got very -- in well if revenue how jeez can ], standard getting of side got we the and to on is side, optics, There's just on have. extrapolating and And about up stuff in Inphi the talking that's coherent that Marvell we on [ chunk. you I'm much cloud the ] then add you carrier ASICs have some So another some now, that nice DSPs. you've shows [

have, going just with asset to that, than so just So that it back. Willem, [indiscernible] it has technology think you're opportunity years larger terms want since we an the it? model be to I were a up, positive if the the we strategic just do in business, and Inphi we few lines deal of product outperformed other the overall second of though has clearly and super become looks we other for just the us, take what the like bought the in much is you asking, team, the and picked synergy but that's whole part incredibly about portfolio, both

to Yes, second the networking, that Yes. bottom, and being just make really Thanks, and we this enterprise then us see Matt. in growth growth so we resuming focus quickly QX really really sure working that's customers confident bottom. And really carrier on trying to the the half the that, second behind put we're so consumer see across with half. in

The from Bank will come next Vivek America. of Arya with question

more on one electro-optics. had I

seen I've term, accelerator near if XXX%, is strong there's related after should the should that But several proportional it grow question a seems assume to growth little we quarters. to this year, of QX, look for optics growth. think breather more accelerators? example, that to the important in somewhat I of in between a AI at your year-on-year probably XX% various bit kind that electro- numbers you growth is So

X.XX, part your sorry, X.XX, is a the there business? electro-optics And that? grow then X.XX, So with AI kind start when [ ] role does to that commensurate should of your of vendors in play electro-optics something different? Or

you think sequential maybe from a the I QX, have on it's got strong but see, that just QX, it's basically, Electro-optics down. And mean, to the feel then of I the I growth significantly, breather so slow QX -- let's you it one. in QX, QX I seen definition second Well, your ramped like ] [ still the business depends use, we right? on view, up to -- how and breather of not staying point

second in on a The The announced And question your I'll bring ] and second. X.XX, [ AI? at interest. second going up. to a to come year third this one on one and later back then was product well. really and year. demand the That's OFC lot sorry, your gone is last We ramp That quals of

Yes.

electrooptics kind in Yes. So should your [indiscernible]. the proportional grow to of growth

Yes.

yes, Sorry, the accelerator.

is -- issues a should way unit think timing about in with -- we business the year-over-year it terms think about The growth. there's shipments. of Accelerator chain -- correlated we some simple is very this grow view got things we In that. model as Obviously, -- I like think everyone's what correlated in sure. to accelerator of view business. For at is, we're way that about supply it that's and line that should to point But and different little a bit but it, number a our highly our optics accelerator

Mobley Wells Fargo. Gary The will from next question with come

hit well should increasing future, think in and when environment versions rate from prospective with [ ecosystem it's way the the specifically about design all as arm the the with As total about your it's ASIC or customers ], for think business subsystems design ASIC we competitive win compute Neoverse ] ecosystem, a engaging custom community. [ armed than how to the more

all, way as you of about in that a feel against about well. you'll you compete becoming How of more do And which how and do then essentially succeed? First think the ARM competitor?

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believe, evolve, has products too. We out our of they for a we'll the the all figure And use long in And so others that place. Arm down with been in But and execute kind time. require to them over evolve mission-critical volume large these compute techniques big as our to the and manufacturing for it's design Marvell the comes we silicon going really to, a it chips it. somebody scale, partner know-how end, like

so and them be it's in and quickly in a even And any back, derivatives can to your have haven't more higher increasingly then hard there. faster you sort more -- beyond, who when got beat of seen spend like fact, production obviously to I think who's now at partner at going we're we going node the rate X-nanometer given environment. to critical And quickly, and what's ramping of and help to are get the competitive released products needed, very is SKUs, looking which be quickly change terms

The will Sur with JPMorgan. next come question from Harlan

you Matt, last of in because programs I you the were these Can you program. ASIC shipments your updated us, qualification. mentioned initial clarify AI just know

enough given of still the tail got have programs these of [ is you production programs? on you've both you're So the importantly, Qual of [ ramp? it ] guys have you but Qual this these initial to two of secured end ], maybe And the you're And just AI ] Qual at the passing process? in sort projects? for full guys initial line more passed [ the Or start maybe follow-on sight

production the think, see believe, And on in now single across we every initial are in, significant, as funnel products. the is we the follow-on, of opportunities various the of opportunity all I we then yes, one of as both them. So involved like the said, ramp start far we're we and right

business advanced other side by it's custom the high-performance would So hit this to businesses win technology encouraging rate our our our AI yes, X-nanometer for sort and gives is is just in is headed. that funnel switching, for has X-nanometer cetera. all benefits the rate pulling very like and of benefit It development DSP tremendous say ASIC design at it come our confidence technology Marvell, along optics, also this a our there'll in driving and et where be really this I more the side, and us day, but

kind happening opportunity to though. able actually cycle where size [indiscernible]. there's silicon, virtuous road show strategy the a of at best-in-class interoperate is and our So that this there. custom overall bleeding at map now more the being But with we're solutions that really a on other edge AI

from come Svanberg will question next Tore Stifel. with Your

Matt, upgrade on I had question a XXX-gig the cycle.

wondering year. early to we XXX-gig Or later the broad-based understanding still ramping XXX X.X a in X.XT also you we're ramping cycle expect take see kind both that of time? I'm upgrade gig. if before off? stages the you So of you more starts mentioned mentioned but Terabit potentially just that at the ramping, this And same My is will really

pieces different should talk three about. there's think I Yes, we

an volumes XXX I'd the really, to tons follow. it's also then going And very, you're what's But call strong to obviously The going very just of half, I of what gig is and transition legs, there'll right? next thing call in early the you're of and that's point, we're be second then strong then going traditional that year year. to first end ], either planning over still first at very indicating So adoption of or And more on time. because [ would true some is from very, be early that this very that's some technology. it's XXX-gig XXX-gig And type transition shipments, also for something XXX-gig infrastructure X.XX I year, the year. the And got that cloud think XXX-gig see in next to promising AI has for. is,

right? in X.XX going think end You're leading-edge I ]. a to people little happening parallel [ adopting up have all going -- bit, they're them kind don't to of I So

the side have PAM have well few to going a You're the you're that's going still as and years. driving traditional AI, then going next volume to to the on for on of bulk XXX-gig transition upgrade. the

best customers, performance So the the parallel up in can best be that is and which and a in being production of that it great reasons, we're they're to going systems for optimize because people ends their SKUs just they solutions rich kind offering so that TCO portfolio of multiple I for all multiple need. different think

last take with question will today James. Srini Pajjuri from We our Raymond

custom what so them know silicon And most or four X are just follow-up based custom Matt, Matt, there far, big the cloud investing hyperscale X one opportunity either customers. seem previous in silicon a questions, going of on we the forward. customers, chips. of Obviously, be to to about

it the like are small. of relatively opportunities So does feel number

are these large course, very Of opportunities.

out Just customers, I Just curious, are which seeing hear AI guess, of bigger or to are multibillion you how more X spreading becomes do as Do your programs you evolving? with that broader? continuing as or that. and each this want opportunities see kind thoughts for in on -- see you a X opportunities we diverse

that you sort there way a years, the it several when if just couple a kind would probably was back the for X years, next about I approach, is was up you was serial one. happen. then type of of that In program and gear would definitely It X AI go of think was And take of emerging, chip, there fine.

point the now your customers all to that's what think I'd I multiple seen, where we've key programs it. across really is leave kind of and

much so customers. to say far. a getting own But by that we've I meeting hear much really of more a respect than each seen far SKUs very them I don't want what do we more with just would for differentiated need more to think very at their specific, rapid my solutions, unique rate is I and meeting

account think then now just back wasn't you it's so in that's you that we're larger X-nanometer we it's X-nanometer, if X-nanometer they of cycle at at the said, fact had And I these chips have the I And in, some saw think, significantly want kind -- if even the of this that than speed to it's of custom the dollars for are I TAMs opportunity I the terms earlier why go. look before a of very available, know silicon way just [ you creating think number creating there and I gone significant, think really ], a just partners. next that in that total high-volume lot lot the time. few activity went of just to of factor in more. if up by design, here. Was line, I data There's of for And the years. operator? is a the in, But down always question product a any key But going concentrate going even always the exciting way, lot business to That's center because looking market up, last that's a applications what continue super are few any the sure, works. we're to the that by sort at that the

sir. ahead take Yes, Go floor. the sir, [indiscernible].

All Excellent. right.

sort we largest and it's the accelerated big to putting market, and years our really includes than win market, market it's thought the we in. in ago here. So the now most this and results an of for our transformation transform the chose of overhaul a become of very ago, center with to part in we're a larger company seen time years We the is effort, majority Marvell, that complete from first, everybody see appreciate chose computing been on levered to to of recent few R&D you've opportunity to years ourselves a strategy where positioning now infrastructure our being much as that's fundamentally center it's a X the X architectures. And a of the semiconductor data centers exciting underway last the piece clearly a end And we've participation journey or the and really transition data of company. into data on today. be right we're industry the invest prominent AI, the call us. huge relative which to It's in opportunity but front We

lot very about the that. expecting We're coming We're center of excited business. our growth data year a in in

of some the of some started, them getting second they're just in ramping and half. indicated, I as programs are these And

that with now, the a we about this setup our call, over and Some chat ramp months here past I confidence the later our only there a them on for and programs it December. we ], a say work of the of had final gives lot ramps. to stronger because this Harland couple of 'XX. And gained about point starting great did did in call this at that only after are production I and sitting lot thought I but at confidence would January, these lot And couple has of kind early our a of our robustness comments. was increased. of fiscal just with JPM excitement some year break us really now of fireside get a a and [ growth of of -- customers gotten

seeing hard, forward working about the So is Marvell. appreciate the to I extremely Day. not positioned. everybody Team at will we're AI disappoint. they in interest And support is very excited where everybody's company and and I look

So We'll thanks, soon. see Bye. everybody. you

attending for presentation. today's Thank you

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