Maxim Integrated Products (MXIM) 30 Apr 192019 Q3 Earnings call transcript

Good day, ladies and gentlemen, and welcome to the Maxim Integrated Third Quarter of Fiscal 2019 Conference Call. [Operator Instructions] As a reminder, today’s program is being recorded. I would now like to introduce your host for today’s program, Kathy Ta, Vice President of Investor Relations. Please go ahead, Kathy.

Thank you, Jonathan. Integrated’s quarter Maxim call. earnings to everyone fiscal XXXX third conference Welcome

me are Financial and today the Officer, Executive Kiddoo. Joining call Doluca; Chief on Officer, Tunc Bruce Chief

supplemental usual website. conference Relations information call. on our in the have of earnings external accompanies The process, presentation disclosures part to our our posted As this a financial financial this press presentation Investor and we in release

cautionary some I’d warnings forward-looking and made. Securities that call today’s cautioned to SEC materially statements. light During future appear in be risks forward-looking involve call, these differ Private filings. Act, statements will that of considered with that Investors that Litigation this in you making Reform the statements be in like are we remind events our the must the uncertainty In and may statements conjunction all from

the refer our and information, to Commission additional on company’s For posted which website. filings, Securities are please Exchange

the Tunc. turn call to I’ll Now over

you participants, Good Kathy. Integrated. you, Thank interest in appreciate thank afternoon us Maxim all our today. We your and for to joining

March the expectations to demand inventory stabilized. in to have distribution we and the to reduce results our quarter, Our appears In partners reduced days end-market shipments met channel. quarter our

expect the and ahead to the trending to the June quarter, with soft seasonality in from Looking Industrial both sequentially return we Automotive up markets end March quarter.

to manufacturing structure flexible our and remains profitability due model. in industry-leading at business cycle Our the levels overall

dividend. of or cash increased this XXX% We to track buyback year, more free share return are industry-leading to on with fiscal flow and shareholders

same This auto by our March for results strength car offset up management business quarter, products decline despite growth production with and from discuss outlook This In was We businesses and was Let X% up battery quarter the to body gains. production. impacted electric starting share production. be a year, was quarter and global with sequentially. March year-over-year quarter secondarily expected is Automotive battery and vehicles we current infotainment last in in now revenue. system by infotainment electronics me In from vehicle the and see in our which product softer from Automotive. quarter, revenue China. revenue, overall be the for growth strong strong electric BMS driver to growth in is June Maxim particularly continued The primarily correlated assistance Automotive car expect offset systems, management in demand

to secular growth continue prospects automotive the We products driver battery in systems, infotainment. and in long-term growth with business, management for believe opportunities assistance

growth higher expected assistance faster overall All higher content to electric cars of to car these grow and in per than are of production driver due car infotainment. and

next turn me same will environment. In Within to Industrial the distribution provide the products. up Let dynamics reflecting the by on strongly commentary in quarter distribution, were me. detailed In market. year, from Industrial seasonal. after business broad-based content was June the of sequentially, led quarter, quarter, soft last right Industrial the more the down factory we expect and resales XX% Bruce our demand in be March automation global Industrial growth to

to management deliver edge. power of the on products that In interface focused automation, factory in and the are communications intelligence we areas factory

Let down me was same XX% Center from Center. and and Comms In last Data quarter next the March discuss quarter, Communications year. the Data

of also infra broad demand optical lower hyperscale saw we applications. base in expected, center used a laser building data declined As for products. in block for products revenues XXXG modules driver Year-on-year

with the shipments calendar of laser continued XXXG block that base XXXX. will drivers second In of building in indicating the down excess June half of off anticipate softness in modules XXXG burn to are products. Comms and customers be a we Center driver quarter, by Our Data and the laser revenue inventory and sequentially broad

laser the of servers. drivers, data in transceiver for integrated However, long-term higher believe products rate products management market-leading and data opportunities in highly high XXXG strong with power the market density, pipeline our growth we center optical with

and power these serve XG have that and do we management the products. Additionally, products we optical started have early infrastructure shipments of market,

these year. significantly fiscal in products next ramp to expect the We

lower me quarter, quarter, Consumer sequentially quarter smartphone the business and with have In seasonal the Consumer. March company Maxim successful market to the was next and in in to tablets, summarize, in wearables Consumer we in for softness tablets, our offset same due consumer In expect to in the let down Finally, our the gaming, broad-based built to business. to environment growth from in business the turn flat be broad-based smartphones peripherals, weakness and upturn. year position To XX% be peripherals. last current June and wearables by we

design and new end Industrial. We life content and as such our are market, in cycle wins long product growing Automotive

Our and company flexible analog consistent ensured strategy business and stability. model manufacturing profitability

to of this all flow, strong, All Bruce. of the results we turn I’ll now free in which over shareholders. cash With predictable call to that, return

with Thanks, million, but down down line year XX% quarter was the $XXX and expectations, Tunc. sequentially QX for in from a Revenue same X% ago.

to While are environment. soft demand, perform this built period of any clearly is in we a

Our XXXX, grew payment excluding from QX of XX-month year in free cash X% XX-month FY last trailing XX% flow, our tax revenue. trailing and onetime was

fiscal more current cash in We shareholders of executing on plan the return are flow our free to year. or XXX% to

X% Automotive, in Consumer, XX% XX% revenue Industrial, Center and QX mix major was and markets Data approximately XX% Computing. Our by Communications XX%

Industrial high revenue Our comprised been Automotive and Maxim. which have in XX% at the since is I all-time businesses an our quarter, of

partners. by but were the from in Maxim’s channel, quarter distribution quarter. a distribution our inventory the XX management same of into to Distribution the X% revenue of decreased March prior with XX% to were year ended Channel in down due Turning Resales most shipments across We the ago, QX comprised the distribution days in days XX channel. from geographies. XX% of dollars seasonal quarter. down inventory

target committed We days to our or the remain distribution supply channel our We bring given in days our of in channel continue to XX the distributors’ chain, and performance manage less. down of our industry. closely inventory inventory to uncertainties the our

P&L. the operating XX% the earnings lower by Turning gross the line Operating of special special tax income, excluding a XX%. same prior excluding items, excluding quarter QX from from special to revenue items items, GAAP to points million. gross was prior year $XXX excluding was share, inventory reflecting quarter XX.X%, down the margin the due QX $X.XX margin. was GAAP tight our down rate, from below and but down was controls. quarter with and excluding revenue, cost items, $XXX margin, higher down QX. driven special percentage GAAP per ago. was items X.X expectations, Operating X% decrease expenses, in XX% Maxim’s quarter, prior reserves lower guidance, special were in from the the million, with

investments quarter. were same the of million and and Adjusted cash FY equivalents third QX the from to and million inventory the Turning of flow. over days inventory months flow quarter. balance trailing year. QX XXX, which cash in the in free flow the XX XXXX. days Overall, decreased to total down million dollars Capital cash, up to $XX X% by were cash XX% quarter or last in ended from three is quarter expenditures XXX% $X.X $XXX at free billion sheet cash X% short-term revenue, $XX returning prior down due was

X.X% flow Our yesterday’s yield price. is stock free closing at cash

Our free flow share per $X.XX. cash was

$X.XX For we closing $XXX or totaled yield X.X share. million as million shares. million bought back capital Dividends approximately return, Based share our is price, QX, the repurchases totaled on in dividend X.X%. stock quarter per in $XXX yesterday’s

and $XXX QX to controls to QX backlog significantly beginning mix. This in broad-based due million. Our QX, revenue, revenue margin, QX million result continued in growth backlog lower low sequential on factory inventory higher the and Based response special cost improved businesses be beginning we special are soft turns, with excluding our operating gross was expected of XX%, is reserves at million. content the items, forecasted of environment. automation to $XXX Industrial. in XXXs QX product excluding to forecast $XXX in Automotive the and expenses, tight this and growth expected to from and items, up is XX%

flat the excluding expected quarter. Our for items, be is prior XX%, with tax QX, rate to special

GAAP excluding we $X.XX to For of special expect earnings per to $X.XX. QX share items, range

expenditures revenue FY of one just we our upgrades fab. revenue to facility and X% XXXX, at targeted of internal capital range lower to expect to X% be our due For above

or We cash track of XXX% flow to are return free more in on fiscal XXXX.

content return seasonal Looking to forward fiscal continue In continued XXX% growth cash to Automotive in factory management free systems. and by in flow in by led led increases summary, plan to to investors. of revenue return Industrial to we XXXX, expect automation a battery QX we

Automotive, are data conditions and for secular industry long-term Industrial soft, remain growth we high-quality, While drivers believe Maxim. center

earnings high-quality control will plans strategy manufacturing to and continue capital flow, us XXX% high cash to These expenses. will free Our return tightly shareholders. result we enables support profitability, of factors in flexible and operating and cash strong our to which to maintain

we the Kathy. a As period I’ll over call result cycle, back with greater to will the that, during earnings power. the turn With exit of increased buyback this

our Jonathan, please Thanks, Instructions] could first questions. concludes our we and we remarks, call Bruce. now for [Operator That will the open question? prepared have

Certainly.

comes of JPMorgan. from line the question first from Our Sur Harlan

please. Your question

afternoon Good on and congratulations the execution. strong

June proxy for for trends. this view in a – On here somewhat manufacturing the good in always demand the I sort global outlook this Industrial quarter, strong as the growth of and of

basis, that broad-based just plus think some Is September profile, think color. China? I And Thank you a geographies across catalog seeing of strong, gave business visibility, a strong which sequential given the all customers. sort including your a Factory of quarter is or minus? SNB driving us on I then normal automation anticipate you. do seasonal you kind flattish growth servicing the you’re

Harlan. is Hi, This Bruce.

about strongly, So think it’s and I when couple that things. a business we of think up our guiding industrial

of our our in nice We seasonality Industrial. return of business, business. have In the the distribution largest strength broad-based kind seen we also but component automation, saw to factory that our distribution is in

into lower so I in area the But in we kind and our seasonality And were some basis, that as and see in – look there, on Europe geographies. we – would one quarter, Americas on the seasonal we was in continued quarter-over-quarter below albeit Japan. China quarter. a have seen Similar of third both the look QX we base. seasonality when say story third those for a seasonality

of about additionally September, us, visibility don’t the – Speaking see immediately we sort giving in to quarter it’s the kind in this before. can backlog and have environment, obviously, we front what of still guidance we trends one talk even and guidance is have And of that to what based right, September. we’re, we’re giving of certainly, the for

Thank Great. you.

Yes.

Thanks, Harlan.

you. Thank

comes the next Our from Deutsche Bank. from Ross question Seymore line of

Your please. question

solid results. on Hi, Congrats guys. the

talk side of want bit little to a the things. Just about automotive

and what was very helpful. happening color You BMS and that ADAS gave some about in was

of to turned half what As the of And tell? that any it the new what customers telling is back the traction can you a within that you have your might in dynamics things, think what tailwind there and are about side BMS of the business? impact, are that as some about SAAR getting side market changing companies competitive from year? And entered some we albeit

question, There to time Ross, have we that. okay, few I’ll answer them. that were questions but take I think in one a combined

So XXXX more are calendar slightly This production year market, in are in market if a really for terms of – Xs, what we is too I about don’t who markets Tier that much saying. we’re from or last what is data in to was general, lot. XXXX, look year, the ones detail really so. down at X% flat automotive car or the car mean, production, about talk is seeing you the get the We year

go market growth a half. XXXX numbers lot we so marketing of by year and the the calendar companies, – that expecting usually from in second is are So what

a we’re what that’s seeing So market standpoint. from

automotive a In terms of the growth. mean for area I is good competitive environment,

changed. our not the companies, in The obviously, done one company sees well. our production. haven’t the There We’re as always received. And which talked been very quite faster, market, we’ve than that the about, And dynamics are only products are well It’s grab of have BMS We’ve car growing as is well that. that because share competitive they way. done you been really want vehicles electric kind other that to that much obviously, can.

are year, also So share we’ve we out that that the there. market. there period think doesn’t our say They last in Well, in the competitors. that are increased no

products keep features because our which to them. the of is if integrity selecting or rating our top you them. very D communications ASIL safety have and at a better robust why performance customers And We ahead products ASIL our have look in

why the we’ve doing But that’s market. been said, as I So are well there in competitors.

is which geographies got recently helps, and in that design to we’ve and wins we’ve win have back the really We pretty actually then China, in world. have around is good we the through go growth much designs. come all is where to had success where great that biggest The news the

So strength and our the that kind line product of technology. of talks to our

Thank you.

Welcome.

Thank you, Ross.

Thank you.

from of Markets. the next comes Srivastava Ambrish Our line question Capital from BMO

Your question please.

Hi. structure Thank brought about several down quarters. How Tunc, a OpEx, Bruce the over we bit very you we fair guys much. should fiscal as you have think and through thinking be last the XXXX? cost

Sure.

said, this if kind quarter. look $X be As – of QX year-over-year, you million we we right, down we it down actually guidance X% at down we’ll brought in the low-XXXs, probably the gave roughly. for It’s

done good current the job soft a environment. So to I think responding we have

we’re kind around will I price of, to have think of to continue industry. spending in controls until returning be our we and growth, the diligent confident kind

trailing at the XX-month a OpEx about always of model on Our grow we’ll has revenue half basis. rate been that

strong we we’re if ramp going make year, we’ve doesn’t to and of necessarily example, the OpEx. half before we ahead for revenue continue a even second be a up ramp achieve to cautious for that, the growth of right? We’ll sure So mean forecast that OpEx have actually

Okay. Thank That’s helpful. you.

Ambrish. Thanks,

you. Thank

Vivek Bank America Our from of next Arya line the Lynch. question from comes of Merrill

Your please. question

growth more question. Texas taking Tunc return from or then or recovery seasonal demand Bruce, heard NXP. optimistic for you’re and about what sounding Instruments we Thanks to my versus

anything difference? to I different heard your are June else Thank than you some create outlook. and subdued we about back is would outlook design some So Is of you. more tone of What the wanted big seeing from question to that difference kind a the just a peers? yourself in that company-specific peers go June there wins? quarter of that so is is there more it is, between your And quarter

Yes.

that When others, guidance in can probably our space. add, and is difference at others. versus seeing areas we think, if Industrial some take better might bit one be a I’ll where one the So our little wants. he we Bruce But a the is than I look guidance of

This First there’s impacted of – special the in environment. with Industrial is true – other by no so there’s for is there. that companies, doubt nothing business there’s all, slower is whole this line the

also the in is continuing signs resales indicator in I the trends seen stabilization have to difference we is think inventory we’re some seeing good took QX, a into now that of in returning is there, us that a And – thesis because decline be a quarters headwind had in might of dollars inventory channel the for two this for down less in we’ve also maybe and it and we’ve row. seasonal QX.

a that So Industrial of think it, we’re you March lower over kind revenue is declined mean I improving in and our base, XX% about of year-over-year took it we earlier. the if quarter. off possible the medicine

decline. pretty So big that’s a

explanation low earlier of part suppliers, the of got I’ve better that side. decline might that’s other the it’s now and So it kind be of seen on looking we’ve a off a I than Industrial mean base.

more muted and we’re the think pretty long-term low-teens was side, don’t below is impacted infotainment and that bit growth companies. growth forecast our other a the for than quite in definitely forecast. that Remember, our And is than On that our that business. I significantly Automotive we’re saying different Automotive gets much original

with So of the more business, finally, now it’s likely look Industrial in is base balanced kind a the space. markets. thesis at to of broader exposure biggest Consumer our more if And you

on it’s well. least falling, as a at kind keeping not of helps which also helping of kind that’s So quarter-over-quarter basis

we So that’s other kind companies. of have the observations that versus

Thank Tunc. you,

Vivek. Thanks,

Thank you.

the from Our question Stanley. Morgan next of Craig from comes line Hettenbach

Your question, please.

from inventory weaker But a said Tier infotainment. discussions from you there’s Thank sense where are areas in And In get OEMs in a market, environment? think you they’ll suppliers, managing and with you. snapback clearly, automotive this your in see managing production they’re do level autos? actually how just some have X Yes. the some impact in like you’d perspective when of from to inventory like terms an

I that lot don’t that but inventory mean say what obviously, their I’ll we in what know one, ECUs, they access visibility Xs, we terms in talk have good – Maxim. to don’t are. for. a take have goods really of Yes, do, We product I – Tier to their have finished too. levels in with to we But we have from kind how of don’t their of of pull they or have

us really is for that it answer hard to So question.

to the approach a just Maybe they the if shifts, quarter are And is terms some different through Okay. in of how of last work if kind weakness? pulling just they inventory? seeing any you’re of

business said our we up be strongly. thing basically we can Automotive up only quarter, The this that say and is, not it’s would really

feels data are you half still year. maybe they So if it’s market say that’s until to it’s that indication but the comes, that I’d look our like over say second hard products, really using an until the at

Bruce and what When to the at reiterate this X% add Craig, his remarks. And really little March year-over-year. opening color more Yes. in just it look so said is in roughly was Tunc just up to business a we quarter, Automotive

We battery assistance continue our see driver products. serial and very management in systems growth link both in our to strong

content which was quarter. from That And well so that’s the in done as with long that it’s growth demand. infotainment business story while the as the overall mature, we year-over-year story, our been somewhat market market, March more would more still know, term, correlated a have larger, insulated overall said, has but content

content story, global kind us the demand exactly for have impact, we source. which, to it of a we auto bit have but on So impact what’s that out seen parse again, do of the little harder is makes

well. as in Bruce looks a June March probably And that, it to will it just said, down this be to as quarter add year-over-year. done on quarter I like basis, mean, Yes. year-over-year And infotainment the was

the Thanks. Appreciate color. all

Thank you.

Thank you.

of from Our from the next Stifel. line question Svanberg Tore comes

Your question, please.

where on orders? you be Would comment And any variations to linearity of there you. geographically? Thank Yes. able

Bruce. is this Tore, So

it’s units, pretty we have from million think XXX linearity broad-based backend not majority a were – of so to business We’ve shipped still products that loaded. our because I to ships the our predictable. ship been and our linearity. that company And never Asia. that our We is has basis,

any change that’s where to view point mainly we from from of so track of goes wasn’t can real And just ship they to geographic because how that but linearity, there influenced primarily of Asia. a point view,

asking of the or Tore, shipments? you of the where the orders linearity

about asking quarter? was throughout the linearity I of Yes, orders the

QX. the Throughout

Yes.

turns just had I nice some there – we good, then some So and because early had of say say half to kind And wanted I we it strength people quarter, so low quarter. would we and think I think some I of the the saw very December second very, early on the stabilized throughout turns in would good some booking.

you. Thank helpful. Very

Thank you.

Thank you.

question line Caso from next of Our Raymond Chris James. comes the from

please. question, Your

Yes, how Additionally, quarter? thank get first, to some of June you. in comments March long your This target? distribution are particularly that drag around in distribution how take And follow-up do question how a on prepared down much revenue the expect I guidance? the XX-day is much to – the the of on for channel. contemplating was And quarter you guess a inventory, on you to

Yes.

output. other are are And we goal Obviously, resales, to shipping can it’s XX. based to goal our much down how with. know, how XX. of partners, distribution very is have extent we and for those the forecast, XX our that’s as control same details backlog what big from It’s we current forecast days And resales is business. we then days So is to items that but the certain how – resales inventory we is us Because what our difficult we have much factors bring we amount like that difficult shipping. distribution are like for there. to of channel, it’s you here the the manage get a I the our the of down amount inventory do in on two much forecast partners. mean of through harder forecast One and much Obviously, don’t – to that the

shipments decline hard and obviously very combination that. both the forecast some in in declined, with lower So four-day the us at to of and for – you look quarter-over-quarter. And improvement that, resale it’s when the the

inventory to say slowdown, industry of exactly in our out kind have can’t the do take don’t sure this benefit. view kind up. we’re we ramps Clearly positioned we though, make as of on said, Tunc some much of you business coming from of how because did sort well want So our and overall medicine point of drag March as extended an we quarter the

the from sorry, impact I’m are revenue that terms March in sell-in on and of quantify how able least at difference to what’s you between the much quarter sell-through? –

No.

Okay.

XX%, can of probably Chris, our business? is calculate yourself. Yes. what Distribution it XX% about you

Yes, XX%.

in Four it hide days. We numbers. have front of of don’t We us. kind the

calculate it. probably can You

Thank Okay. you.

you. Thank

Thank you.

from Our the Pajjuri Macquarie of line Securities. next Srini from comes question

please. question, Your

be Thank a expecting. you. you seems mentioned, as the play any on bit market to Tunc, here? give I’m are was well on longer what’s color you then share there? least a I going than just dynamics correction the data inventory there Could taking curious center at at us to business, more little that to it as as And

taking longer it’s expected, I also. Well, honestly, than

supply I So generation it customers won, for components driven burn really hyperscale and that of probably products. end share us the of this the their and feel here. that of shortages way market year chain. customers so markers especially we’re Most the last maintaining. over designs of we like is module But longer redesigning by systems issue off think, it taking and we partially there’s any in interested this customers, The were concerns like the that overpurchasing doesn’t to – seems the to on, in not are for that’s any

is – will will half products revenues that getting shipments customers these and returning. year, resuming for more burn but anything wouldn’t that, that are We I read those resume into off the the shipments in indications most than likely calendar of it second and from

you. Got it. Thank

you. Thank

you. Thank

comes next Muse of from the from C.J. Evercore. question Our line

please. question, Your

a afternoon. question Thanks Yes, taking gross the I good guess margins. question. for on

well think as modest I miss June September about you’ve beyond, and how good that? your the some across as to I just provide inventory gross you. think a a about both you down the guess and work from the March. said think bad mix of margins then desire the on to into you recovery? we and considering going issues to you led that outlined And some reserves and clarity inventory should as outlook that into different Thank Can segments,

Yes.

sort at and March we of in. quarter, what that that’s come reserve. did a inventory and We to below have our two that equal an kind years inventory was come inventory have to. to non-cash look had product at the of forecast you’re the look is reserves we we extent charge, the for the one compare have right, is just by than to more about where which point And we we basically we that when and demand to So and drives expected we then inventory

little are from long-term in of might a expect bring a As forecast. psychology when kind you of bit slowdown, a you people forecasting, down the

We’re very never up or points one good down. at – is inflection forecasting no

that we happens, and down long-term in generally an reserve that And charts. the results when so inventory forecast bring

business consistent back a situation, We cycle. the we as ship impact bps about that throughout XXX we would have this higher-than-normal extent XXX% up point with in a the ended follow reserve. that products for, to at inventor previously – due margin. gross we we as But methodology. And come in we comes and ship that those Now we reserve to the that

little quarter benefit the in both the return our that range of midpoint XX% target with of better XX.X% XX%. Industrial As about a for I’m back highly Obviously, of get the as June confident we return back – to going about up. normal – to bit to strongly and to we’re gross confident forecasting kind up we’re reserves think margin inventory at into forward, that that’s mix will

that remaining fab March see quarter loan improve, lost well. we’ll that our for a to as continues revenue point – in utilization improve and Assuming facilities, the in our and test back-end will we

range So – I our in back if think kind look over up. margin. $XXX when get roughly, we be gross we target you over you historically when million, we that back should get gets for And of

favorable the business. grow all we as forward, at business same kind going the Industrial, there as exist of out Oregon, of in So fab distribution pricing tailwinds maximizing us our we mix our for the environment, up remaining grow utilization

will gross continue the and term confident that’s those for of we’ll to provide margin expand All still long gross we’re long target that, range. within tailwinds margin very term, our

you. All right. Thank

Thank you.

you. comes of Instructions] line from next Stein William Our [Operator Thank SunTrust. question the from

question, Your please.

comps I’m are exclude Great. market hoping optical end please? out the trends the XXX-gig quarter? the you in you my expecting about market, talk both Thanks next couple as end if over question. can what you for quarters, that the taking you in look guided of And

So Maxim. Those market, center optical are call In comps are obviously look talk basically data if Obviously, opportunities if there new little for comps, backlog. you’re it, just opportunities exclude for or bit of a talked whatever the I are you I you remarks believe in the some have at base them. XXXG This generation you asking. of and infrastructure there for products comps infrastructure XG about station or we plus which XG there prepared opportunities there us.

whole this both units bunch units go We remote of end general-purpose as a that in have power management products in market. up products base to and as radio the other well the fan

and the opportunity is received that which in space we So definitely opportunity Maxim’s is products of chain not question for large what well. our some is about XG. as have as It in an as us, it single exposure competitors, but

weak. mostly infrastructure, if comp’s parts. an we pretty in couple products it’s of So last are quarters the see into general, older-type in been base you It’s station that In at general-purpose opportunity. that the look the revenue our as

to well. terms we the that of the – I those looks been beginning to expect growing So selling XG XXXX. start broad base of in we half like second But the just year that general-purpose selling we’re in calendar opportunity, have not the and products of products it mentioned grow ramp

you. Thank

you. Thank

you. Thank

the Markets. comes Capital from line question Steves RBC Our next from Mitch of

please. question, Your

Hey for a guys. just taking Thanks segment. bit to I shift wanted Consumer question. the my the focus to

that’s some improved. a coming guys but back, I with the guess, business, then lighter-than-expected, printed kind it getting you points data Consumer sounded We’re differentiated of markets but

on expect you So can full more update what – the the smartphone on side year? you calendar happening of granular business? maybe year us And of provide second half guys what’s a the full the

So one. that let me take

business, look if give hearables, business smartphones Consumer mix half our in of you Consumer of types of is is and other just you other So kinds tablets wearables to the about half and at some and products. gaming, of all color, our

been the that doing been have and we viewpoint, Consumer part so have the revenue our diverse that that’s we’ve a from in strategy the diversity the increase that grown successfully revenue. of business, to So of base piece executing the we

revenue Going seasonality forward, our has different than a smartphone business. that

we what So offsetting because flat the fewer in broad-based piece is about each we content in to the have those our come they phones phones. markets quarter and selling was weakness this in which less largest Longer-term, basically smartphones customer, are other we other. beginning we in being basically have and seasonality see we have back, said

the that’s And that other on stable. So more headwind we side. continue the of and business, the to smartphone is have which we diversified the grow piece more

dynamics. of kind the that’s So

most growth expect points, to maybe Consumer, or a not but it’s likely. be going percentage be a flat for slightly the So up area company in long-term big we few to

Got it. Thank you.

Thank you.

you. Thank

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

Your question, please.

for for a profiling you diversification that the sequentially. actually, is sort been your up growing this question stronger seasonally the because meaning as business of away like question you as it’s on And with last second of Thanks follow-up September gear quarter smartphones, been more Consumer Consumer last from actually half, traditional couple the a has the to years, follow-up. for the mentioned,

your and think I power a got customer on. new you’ve flagship ramping year, you’ve gaming new platform products, tablets got your with wearables, so this management

Consumer that fair normal up is quarter? you of is the guys sequentially so in sort September this probably seasonal assessment now And a for

September while. trouble, job seasonality, than I and Harlan, it mean certainly, forecast a mean quarter. have a quarter. Bruce. traditional is I more stronger follow so talked Whenever more which that now going as seasonality to probably Yes. I to is Historically, such in this Consumer I about been a generally for whenever Consumer changing we’re out I in talked we’ve doing this get the well. Tunc try is our

does are the but this June thing that, in product that. in September base the in there out, do with wearable out the to extent and there are quarter. within gaming then called the area. seasonality whether, for broad other launches same certain to said example, of now And in normal as some We there see accurate going dynamic upsides Consumer, we not that is is seeing in as you’re sort stronger we upside launches of quarter, The you I’m occur tablets there, devices. So product are that that

have normal So on top sort of you our by of customers. of introductions and Consumer have you product that then kind that seasonality a

you. I Thank insights. the appreciate

you. Thank

And any to I’m you. I’d queue back time. for not in Thank remarks. you showing any hand the program further this further questions like to the at

participation Okay. Thank in and for That call. conference today’s your you Thank you, your Jonathan. interest for does conclude Maxim.

Thank you, program. conference. ladies participation for and in today’s does gentlemen your This the conclude

Good You day. disconnect. may now