QUALCOMM (QCOM) 1 May 242024 Q2 Earnings call transcript

Ladies and gentlemen, thank you for standing by. Welcome to the Qualcomm Second Quarter Fiscal 2024 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded May 1, 2024. The playback number for today's call is (877) 660-6853, International callers, please dial (201) 612-7415. The playback reservation number is 13745532.

to of call please Investor like Lopez-Hodoyan, to go now President Vice Relations. would turn over the Mauricio ahead. I Mr. Lopez-Hodoyan,

include Amon and remarks join addition, the you, good everyone. will call Thank session. afternoon, Alex Rogers by Akash and will Cristiano question-and-answer Palkhiwala, in Today's prepared

and our that slide accompany Relations this can access a Investor You call website. earnings release presentation on our

a this website replay being qualcomm.com, will later available is webcast In call and addition, our be on today. on

we non-GAAP to find financial today, our defined will Regulation G, can as call you in the the During use website. GAAP measures and reconciliations related on

differ will events, from our in statements. statements, business important We or recent those including Please future trends forward-looking our could SEC contain differ which refer industry most estimates forward-looking factors could materially or actual our business of that events forward-looking filings, cause statements. materially make from or to the XX-K, Actual including financial projected projections also results. to and results results or

now President from Executive Chief Qualcomm's and comments Amon. Cristiano Officer, And to

us Mauricio, joining everyone. reflect of billion. continued of strong earnings was our for smartphones of in share and demand afternoon, high Android fiscal billion, guidance. non-GAAP the In and of momentum end Thanks above good chipset Non-GAAP per we for from Revenues $X.X our $X.XX, you, revenues $X QX, Thank delivered today. business premium tier automotive.

were Licensing business revenues $X.X billion.

growth progress diversification made our well product also the technology significant executing maps on as opportunities. quarter, and we our During as road leading on and

highlights from the Let me business. key share some

next-generation robotics, and on-device and the enabling vehicles, more. ecosystem industrial GenAI edge, everywhere, develop networking we As computing devices, drive applications smartphones across XR intelligent commercialize PCs, we're to

models. applications. developers Xx devices Qualcomm launched AI Hub, features nonoptimized the for It pre-optimized models of inferencing end, to a powered AI Qualcomm on-device faster that for and platforms, by AI To of delivering at XXX library scale enable approximately commercialization gateway versus we a recently Snapdragon

As extremely given cloud capitalize to devices, that design automotive, on-device edge the are and growth leading AI opportunity, leadership win In expands billion. the increased to our at to including we Snapdragon is to the positioned approximately $XX announce pleased AI. solution, this we're our technology the technologies, well position rapidly Digital pipeline Chassis has from industry's on across

than more set our We're capabilities. GenAI of smartphones, than achieve market automotive In growing on in 'XX. to faster for continues platforms fiscal the remain the $X on-device mobile and track billion addressable and revenues to premium performance bar and high-tier Snapdragon

by globally, are flagship X launched China. Android strong X powered Snapdragon seeing Gen demand devices Recently especially in

Release broader X high-tier are Gen Snapdragon XX industry modems, XS on-device the we launching X In to second platforms of addition the Modem-RF We smartphones with advanced XXXX. AI advanced, the the Gen including XG cellular features. era in Snapdragon have again and established satellite XXX, after to mobile X extending System. a communications to and The most compliant with the a range the Snapdragon mobile benchmark supports most half capabilities, and in new sought leading of XG Plus XGPP direct new Series next XXX of XG X flagship world's

enterprise. to to solutions X expands gain as the transition traction continue networking our WiFi the Additionally,

and leader PCs. optimally to the Windows is and are device The Snapdragon We excited upcoming Elite AI by PCs X about on Windows AI to lead power Snapdragon. in the performance true for powered efficiency of the the next-generation launches AI positioned is transition ecosystem

ARX Gen we're powered device a In virtual momentum In Ray-Ban the reality. Snapdragon gain broader share glasses traction range tiers. that expanded platform pleased with and our to XR, also seeing Snapdragon the with compute to X which we continue is designed Meta recently portfolio X in platform. particular, of good I'm Plus augmented to by our consumers. address

on Horizon third-party the is and open now hardware makers. available to Additionally, Snapdragon OS Meta running

as milestone the significant expand a is they device will This ecosystem.

the IoT ecosystem. WiFi QCCXXX commercial the X lower Qualcomm at in micro-power Germany, SoC specifically battery Finally, featuring Embedded is power, applications, connectivity The World than previous industrial Gen for new for the Conference Qualcomm RBX QCCXXX consumption X consumer we in IoT platform. power in announced The and designed industrial, solutions XX% generations.

platform and of comprehensive for In operating solution of platforms. a also X of by hardware and the Gen a supported software types industrial designed Qualcomm package products, devices RBX for support including is and handheld feature for software the developer tools wide a Linux, our announced AI more. robots, complete RBX hub range and drones, IoT is The various recently system,

the summary, strategy. we're and on progress pleased continued with diversification growth very our In

Beyond to edge plan will we continue on the established across execute growth and and are and and to XR the for about do value in have We're industrial our and AI. networking automotive, deliver leadership well PCs, to for the shareholders. opportunities we handsets, ahead company positions long-term same positioned optimistic

now like would Akash. over call the I to to turn

I'll second good Thank fiscal you, earnings. our Cristiano, everyone. start afternoon, with quarter and

QTL are of and billion margin . We with of revenues of our $X.X expectations. XX%, line strong pleased to and non-GAAP of $X.X in of the was EPS billion our guidance end which of with quarter announce high revenues results above EBT range. were $X.XX, another

$X guidance EBT QCT billion automotive. platform. $X.X the of benefit launches Snapdragon at XX%, revenues handset powered of strength smartphone Android by billion of handset margin reflecting was revenues X range, delivered and included the which mobile of of QCT our end across flagship high and Gen our

which with dividends. sequentially launches Snapdragon X% billion and Automotive, We with the QCT our another on QCT expectations. than $XXX in $X.X reflecting million in million vehicle stock billion, quarter revenues XX% $X.X products. better by Chassis year-over-year stockholders a new $XXX increasing in basis, IoT increased record had in content returned including quarter, revenues increased We Digital during was to repurchases our to slightly

our growth. increase our an $X.XX share, in announced quarterly commitment dividends also consistent dividend to $X.XX we quarter, the to from During with per

of successfully sale system control business related acquisition of divestitures the the the businesses restraint non-Arriver completes the of to our Lastly, Veoneer.

the the vision software and and late targeting with team in development 'XX. pleased very stack, ADAS on computer starting executing Arriver is acquisition, vehicle policy drive launches our are this of We

to guidance. turning Now

forecast calendar unchanged on that basis. year-over-year Our 'XX. We units global remains will handset a up XG, for handset estimate flat for slightly XG, units global XG be to

digit This expected single of includes high growth in XG percentage low handsets. to double-digit

reflecting billion, quarter, forecasting and we of revenues In units. of QTL, seasonality for handset and EBT the For are third billion billion EPS XX%, $X.X $X.X $X.XX estimate $X.X non-GAAP to margins to to of XX% billion fiscal $X.X we $X.XX. revenues of normal to

revenues decline the expect to margins flagship handset billion by with quarter. billion our percentage In $X.X launches sequentially, we of seasonal trend QCT and to Consistent to we a QCT, XX%. revenues anticipate comments, absence EBT $X.X of handset reflecting mid-single-digit due in XX% to of previous the

grow IoT QCT impacting by mid-single-digit expect percentage as recovery see to revenues the to macro We sequentially the to factors continue we gradual industry. low from a

in pipeline revenue. performance fiscal low double-digit revenues second QCT the win record increase materialize quarter, as our to Automotive expect we percentage design into to in the continues a Following quarter-over-quarter grow by

approximately we Lastly, be billion. non-GAAP to $X.X operating expect expenses

and year. In financial closing, we fiscal for performance half of with execution the pleased our the first are

and from year-over-year competitive recovery 'XX, fiscal handset Chinese reflecting we of of positioning demand. by revenues increased Specifically, half XX% than our greater OEM in strong first our saw the

execute continue IoT us look fiscal customer strategy IoT, normalization diversification technology and 'XX. Looking In across base our and forward, positions forward our to automotive. our leadership we to on to demand exiting across

OEMs by PCs launch about excited our the we're platforms powered in starting Plus X and AI leading of addition, PC our all next-generation mid-'XX. X Elite In Snapdragon from

PCs has billion In deliver targets. long-term to September we providing increased in on-device from executing design $XX revenue GenAI These in to performance, 'XX battery are extended and pipeline industry-leading automotive, that $XX our and pleased will win our advanced approximately processor billion, features confidence life.

remarks. prepared Back you, Mauricio. our concludes to This

we you, for questions. ready are Akash. Operator, Thank now

Instructions] One moment with for [Operator Ramsay Matt the Cowen. first question from please

compute applications the AI on phone up Cristiano, to a the I the likely era try of it's think of device. move modem and handsets you system we RF battery into as more in and handset, memory as I mobile for that we sort compute inference wanted to system of architecture these question of and where life sort devices, about AI potentially of take the ask the some

if it's how for why. phone or you wonder There I business. that RF think how the changes I as further bigger a on last But one of your night, RF was wonder it opportunity you does the with integrated compute I business guys. that picture and a the give modem subsystem puts question comment pressure might opportunities integration. your your that And modem on competitors potential think if and of went for socket you -- lost your to I about talked

Well, let unpack this. me

RF across the modern-RF, front AI, features think a RF, believe I we we comment, a unique have to but not as end competitive and portfolio, been have general as general I we as far power. related really very delivering comment. -- on as especially modem

device as of more models especially running on RF on AI new AI I modem real-time a at has and or of connectivity. important, running latency cloud AI think like importance becomes look the you things response hybrid

ability fact more I on leadership see is I is proud run leadership to as watt. devices advantage phones only compromising having actually well for think, has on best the the without been NPU AI, starting think important. real within modem-RF, technology created as the reflected and more pervasive very even possible we're performance is we cars. AI PCs The we're think that which becoming there that's that So the performance And both Qualcomm life. per though and modem I key, battery for on the position the the our not to of more position And

the from with next Our is Samik question of Chatterjee line JPMorgan.

more XQ terms lot performance any that just if to with conflicting market of mentioned in but because being can market, seeing you're in in a Cristiano sort you maybe taking a points what numbers strong the of Maybe breather. been then you the the maybe seeing you're details in market share about asking data the any strong relative start specific and there's can China I of

it ground curious phones sort you're seeing on the are of always technology doing AI been understand the of well. and in the leader there terms Also, like seems So market. it's to adopting in China new a what

rebound? after to And a quick of have market versus much the I a do AI-led follow-up cycle attribute how that. normal recent upgrade you So strength

you, Thank Samik.

what seeing the premium think China is mix tier. that to us high is So the and And improving. market what I moves for market in we're

the has market As form that's and return to continue of the the being premium and consumer. you to AI market, premium and on-device when actually increase, of and high And instances percentage stabilized, first GenAI really that that results. we the a with driving devices, within resonating what's has and been some tier What -- as is in very are we that well seeing liked and launched normality.

a that it's So trend positive we like.

our The premium other in we I'd weakness Android signs China, is, with not like market in add have especially to OEMs. color seen of the

a is I premium the increased So of lot the that overall entering really Honor, of Android. devices from Oppo, actually from Xiaomi, think OnePlus, TAM premium Huawei Vivo. market And strength coming

Samik, of points top. to data maybe, quick couple on add And a

As by and grew 'XX, we XX% mentioned our first that of from and in our half fiscal guidance. OEMs also our third year-over-year, remarks, greater reflected revenue quarter in than is prepared Chinese

CPU have a look up well. we'll new from a map it's later as forward. as our coming then in up Oryon we coming trend So this you premium launches tier perspective, year, And that's to custom in look holding as our addition GenAI, core's into road

So the we're about map. excited road very

follow-up, Got and rate seasonality quarter, for by being typical handset than seasonality you low that that seasonality more autos with about. you talked double for it. the revenue Akash, the maybe seasonal of this really is see is being when the driven the into I you. sort the my here about aggregate or results mean June you is And growth talked better

sort of very strong how but of this in improvement of of quarter-over-quarter Clearly, pace sustainable terms sort of pipeline wins, is revenue.

that drives get when of going auto strong start inflection pipeline quarter? given see have more Just we want sort better to September in the seasonal a revenues sense results is this even into and forward. you if to the

seeing perspective, way that automotive an our From you're know, revenue materializing what a out really on we've in pipeline greater is 'XX. than $X into Yes. our billion win target number. as you given to design revenue of fiscal And

as that's so framework And to I how it. about think the

points on of pipeline. win kind data key our Two design

-- September recall, ago, So had of $XX last as you'll about in number was The we number that just given the we updated billion provided September months XX is design $XX 'XX. wins. billion

is X/X that, a of obviously, significant ADAS. So And approximately very note, driven increase. by within

and ADAS in seeing adding pipeline. So success tremendous we're win that's to now our design

from Genuity. Our next Walkley Canaccord Mike question is with

XX% on expanding asked OEMs portfolio, the guidance. in shipments of through And this to on based is maybe quarter dip? June Chinese into sustainable increase you just the smartphone to half the quarter do calendar have AI the the holding just seasonal level off building trends device of your market back normal the the June of expect another kind demand year? Or after way,

Yes.

So recall, from financial third we given of to Mike, that quarter true. holds still a as earlier That quarter seasonality you'll we said low business. perspective, our the the expect the had be just

is So fourth expect OEMs. new as happen December across all we go quarter, quarter into quarter, from fiscal we phones major the growth third which to then launches and as first of

what excited launches of will And our Gen earlier, the year. as X chip later to Snapdragon in does have and the that about I extremely chip X said come the we're well, through that launch chip as we're that and going

quarter, think third we'll that fourth 'XX, EPS fiscal be grow the to Specifically, beyond December from growth expect quarter the fourth consistent as and you quarter. to we with into about then

the Great. as And That's the us very you you're you IoT X Can maybe laid just just March sounds terms in maybe is follow-up correction? bottom, the what on on segments, a of business. update inventory the seeing quick for It like out. helpful.

Yes.

We into December bottom March mid-single-digit we're So by than that quarter. grew was now Mike, first growth. September low as into quarter. X% about fiscal the And talked expectations. guiding then which our we had growth quarter to the better sequential from

the at it hold it's year, -- the through outlined would that fourth to quarter and the had as holding, the is of we year, trend we improvement beginning see as we So well. fiscal and expect in

consumer more IoT, In phones. terms within with of parts is aligned different

and we've faster. peers So is our And are industries industrial time line recover aligned the that. within that then those seeing recovery with networking the consistent what with seen is

step our that are products kind and there, coming think you of back we're pretty about out. If new about business excited

to set PC coming out the this segment But will that later addition this about talked we IoT have growth this later year, also in that, coming and X as year. Cristiano So launch device of drive products industrial in products into well. out new WiFi then

comes question Stacy Our Bernstein from with next Rasgon Research.

just on are sound for For back outlook, PC devices my it question, first the purchase available to going does be like in the half.

does should PC in second see actually is QX numbers the And beyond, we the when like enough expect for to the and PC PC much big for how outlook? the what half actually like So in us get into like it?

Stacy, thanks for the question.

the lot of to of all right especially I momentum We event, everybody happening have device product the a and now is AI. and launches. a or product on what watch with encourage with Build There's lot especially go would launches, Microsoft momentum

add, terms of Anything are Akash? ramp up be in started going a devices to those event going material to of school, being to back like of in IoT And them be volume. it's to more As segment. since you'd the fiscal lot within 'XX a

our material volume isn't in in forecasted June maybe Just PC quarter our numbers. there guidance,

going just -- a quick. this real on we to going like detailed sorry, we're to especially to on PC, update provide auto we're to update One quarter launched. thing provide do thing next more do, are as an We're devices quarter. those One have going we're going

That's Got helpful. very it.

ask For my revenues. follow-up, wanted about to Huawei I

beyond revenue the Q, the year. the says So any calendar in end expecting Huawei further not product that from you're it of

that's calendar but going now end? into I numbers that So it's will only of much XG big away the low is left, know year? end the in in that How the how like be

Yes.

already in have devices. look those from spectrum. chips. XG rightly in any So XG we all is out, the business tiers you've Huawei the Huawei, shipping revenue What devices expect the the are that eventually devices for What pointed And Q And license low point multiple have at at in own at this since don't is we participate as launched clearly, with their we XG, product you to it's of don't you the we we end chips. as 'XX. they outlined Stacy, of will if seen, is transition

Caso line Wolfe Research. the Chris next with comes Our from of question

you lag your of what on is Can and that improvement OEMs some to of QTL. the segments talk the those breaking business. level Question in that the optimism in starting particularly sort between about out or this QTL among in the to QCT see not for business. of sort like QTL recovery thus far has . of business. China it the is of And translated range hasn't But -- degree sounds the you're

Yes.

market. So the up the the as the royalty business driven royalty ASPs, rate -- on to cap applies. you the is by percent know, is of total rate size there well, And a QTL which really

we side the above is $XXX QTL a that in the by benefit have the units It especially does is lot it's program way as on business price. not royalty something seen So at structured. tier, premium -- the driven the directly, the more QCT not benefits

So the disconnect X. that's the between

That's helpful. it. Got

of AI with a to into gives the on handsets the are for what is, AI you're what follow-up, applications, reasons about And some the will the that pipeline upgrade questions are doing, hub regard why? we this a to drive running, that talked the perhaps going developer their the of on lot consumer what are a As what's handsets, that the handset you in receive to Cristiano, insight you sales? developers that these AI. sort

in Look, devices. benefit question. think to step I is the a all I And going great to general, want and say, it's back AI

benefit besides They working security, I alongside cloud. et costs, new privacy, cases, think AI when extends use the to latency, device running have of completely on cetera. the personalization,

started, the experience. user that apps, grew the was to hundreds handful in this. have same you and a smartphone of thousands the really that thousands apps how eventually and look of of way into Here's you that should when

in I very some you see think those that and And use have of to stage. you're we're the cases exactly starting early moment.

XX of the for little different of one works a about it industry. they're than phones apps is reasons app And a the I It's new, store. traditional we growing. Some because different. you this have moment have and think, bit the AI hub think the the how

You any run They can source device the they on built models, a open or in can into have many be models, application. attached and many

So see is a I of lot to think starting developer interest. we're

models, OpenAI when remarks, NPU than are the we optimization. from from said different using models they're Llama As the the without XXX they optimized over quantize many, X run faster we to and tool, -- prepared in have optimized Xx and they the to model

And and an camera, cases associated it's those to image or models apps, started use with implemented whether a associated those language. be with in it's

So really it's see reason same It's transition. as to and to creating it's really buy same people to in we beginning well going come cars as the the in to we're We of for because new that they what industrial. a on be like device, PC. the be going a

So I strategy it's exciting actually edge. the connectivity an our at driving tailwind, computing of think, and for

from with next of is line the Arcuri question UBS. Our Timothy

wanted where back business. the of a fiscal time. And distance China were half. basis of fiscal Akash, as is within obviously in up in quite the it XX% mix it's building peaked that first at said, when they you on kind to 'XX well. quarterly about year-over-year over I of But the ask shouting It's up holding

How happening growth units year-over-year a talk the much you what's can bit pricing? about is there? So little of versus

the is tiers, it's said mix And that's we the positioning as earlier, Thanks, us. are It's know, being is you biggest competitive helping and -- benefit at are Tim. seeing so Yes. higher stronger we really we as stronger. the

but look chips not at integrated capable over the between capabilities when chips, more GenAI, competition OEMs. the are especially as -- being into additional is, tier at the the other premium strong second are and just more generation The you the generation, getting

So there's demand for those capabilities.

very we come is with a flat that seeing through versus says The And year. as is are seeing combination market we're it's a aligned unit which really much strength those last market the versus forecast, things that unit well. So size upside. of driving

Got it.

that wins of we part follow-up. this modem. are consider then sustainable that these obviously as kind phone? RF Should just And gotten Okay. as of you've a for quick How upcoming the

RF goes So modem when the away? away, also the go wins

an us So go and first of course, but will terms here, to how when advantage for specific talk think of well. for thing for is of our develop sustainable question market advantage The to I'd the us we'll end-to-end very back forward together, And not as I performance, terms customer that's that in for key answered. that in it Cristiano we the time customers a going architecture the us. about modem-RF creates any stay

of Liani with next Bank from of line is question America. Our Tal the

at numbers, QTL of rest for on handsets. When and trying to the the course. I both how China understand versus is of of your bid you numbers I'm And look the mainly QCT, outperformance It's the just world. much

look you And now world, we of your in -- China, half when there right? when mainly There of is trends is year. ongoing from last QCT at growth, comes recovery what the the the are the within it seeing first then year is to QTL? in the were So cycle, the shipments we what rest recovery and are where but

now demand? the you at here, levels? trend Or from are And from of on still it should recovering we normally year? normal last are low based So

Yes.

couple comments. a of So

OEMs. on is across picture the overall First

very a well. saw strength we ecosystem as parts but other Android across had benefit, China So significant the of

X discussed was represented just in we not isolated mix the OEMs. so And shift X and market. it's is overall something to the broad the a of that It that trend that overall was or market

that On that handsets, we a our trend forward. we go as strength is not inventory. are your This think optimistic we this as holds forward, second question, about in about very is

and trends really by increased market the aligned I of mix driven units the content. are and actually As said the size earlier, the with are

Got it.

Okay.

is when to you? if non-AI where the be on look AI grow I that if to it's but all. price QCT theoretical, in semiconductor contribution, don't the you comes you there possible doesn't versus the if at grow, just But for the a contribution quantify mean to at can is more it market the it mix, know That's even So there the AI. in just expensive, AI. the isolate increase the QCT question, Second impact Does to of to going market is AI trying number an shifting by higher phone. AI? per content I'm included

to A answer help you ASP this. of QCT of try a [indiscernible]. compute by premium an more been who performance chipsets, maybe driven me to give first explain the the lot people in the And including In But on NPU. part. on content let step, it's has lot increased the compute, CPU, GPU,

been the chips. NPU those Second, of silicon has the in largest growth area

has So to over one AI, those devices lot generation improvements the AI expected of content those because generation, for capability largest in driving and the the been is silicon models. NPU run of computational a

The you're see of which that mix. I that to AI. the way can to to think in phone the starting probably right now, Users benefit it's going run come a beginning want improves more financially the it capable buy

want buy mix towards of and improvement So here, we new an it upgrade to about as share gains people market then richer think should it how a a higher phones. in cycle the drives That's phone.

little a PC is different.

enter AI a I be peers the tailwind laptop, to AI better I the it's PC, going any the think think As on our run we on ability a of device than the and capability. to to

those of platforms, GenAI able those a were of commercialized run upgrade the can top with the do -- we be in platforms more builds on many to it that vehicles. that win and pipeline, value being design to Car, the increase especially are softer on of

for So microcontrollers that's part new I higher performance that computing answer from Qualcomm. this to high-performance which trying industrial, upgrade is think of how going to The area my a materialize to we're is connectivity. last is to

attribute is going forward. of AI a Edge market proving think to key I be this

the from is Muse question line of C.J. Cantor Fitzgerald. final Our with

QCT, I that the like margins it think flat you down is auto, I on did should hoping revenues gross AI quarter, this growing was the well to might we the thinking for as about IoT They just how despite impressively as incremental margins. question be speak model, real revenues X%. could guess not PC you look but backlog. we non-handset I gross how particularly here and guess And what as bring QCT as given you about to held

of I seen mix strength yes, it's quarters we've fiscal call. C.J., first discussed quarter decline, seen is in by reflecting definitely margin, sequential of for that again, third Thanks the on and -- we've What a of think year, driven change the going we're lack couple to of this been operating quarter. before. in and on launches kind the gross kind we've end we've We've framework it a No the of but said range, the the no on of flagship what change guiding the high fundamentally given range, of margins at the return forward.

Great.

Or As faster on come thinking talked you auto plus. be about billion in side, 'XX-'XX? growth. the sooner of reiterated the a with quick $X that follow-up, we amortizing about fiscal percent might kind higher Should the that XX-plus growth into equally

Yes.

data of obviously, of current billion it. increase far X out this towards about is thinking the growth points reasonable But quarters a are way forward -- $X generally kind point. guiding you kind of the rate of if at not slope run and between extend the mean, we x it I slope kind So that take target,

to question-and-answer further concludes you session. That today's call? add have adjourning do before Mr. anything Amon, the

Yes.

more Snapdragon questions, Just going everyone much forward the that's I to I from to into really Microsoft think as drive our a announcement few with and incredibly road the Qualcomm product to during the we're how PCs next-generation And said Build we're encourage I at pleased call, our technology platform. evolution. AI look map with and looking

market, Same to new a a to to from we go just We building set we went And ourselves Every we very company. execution with or of mobile going all RF when to I end thing front-end, #X. became the strong to time enter the we and about you a a was we leave new thought. One things great up market position. WiFi. went

it something the ambition we Automotive, build diversification. was to as had that part of

I think we're choice. quickly partner becoming of the industry

PC, we of are absolute clearly platform, we translate We coming that And financial believe momentum with And reality. product the opportunity leading in the a now there hopefully with long-term augmented the virtual the majority have we that the we will and reality, the is -- year. have build designs. in

wanted Thank feel and capabilities the call. good how you Thank to technology your state about talking you just next diversification much in for I the for So very our you looking forward I'm company all we're to employees, shareholders. that to and growth we and to support. driving

Ladies and today's concludes gentlemen, call. conference this

You now disconnect. may