Q1 2020 Earnings Call
Later, we will conduct a question and answer session to ask a question. During this session you'll need to press star one on your telephone as reminder, taste program is being recorded I would now like to introduce your host for today's program Kathy Todd Vice President Investor Relations. Please go ahead Kathy.
Thank you Jonathan.
Welcome everyone to Maxim Integrated's fiscal first quarter 2020, <unk> earnings conference call joining.
Joining me on the call today, our Chief Executive Officer change to loser and Chief Financial Officer, Brian White.
As a part of the usual process, we have posted a supplemental financial presentation to our external investor Relations website.
The information in this presentation that accompanies the financial disclosures in our earnings press release and on this conference call.
During today's call, we will be making some forward looking statements in light of the private Securities Litigation Reform Act I'd like to remind you that these statements must be considered in conjunction with the cautionary warnings that appear you don't FCC filings.
Testers are cautioned that all forward looking statements in this call involve risks and uncertainty and that future events may differ materially from the statements made.
For additional information please refer to the company's Securities Exchange Commission filings, which are posted on our website.
Now I'll turn the call over to change.
All right. Thank you Kathy good afternoon to all our participants.
We appreciate you joining us today and your interest in Maxim integrated.
Let me first summarize last quarter's results and our outlook.
Our September quarter results met our expectations, while maintaining lean inventory levels.
Looking forward to the December quarter, we expect sequential growth in communications and data center in automotive and industrial partially offset by smartphone related headwinds and holiday seasonality in consumer.
We continue to be cautious given the persistent macro and create uncertainty with demand trends are stable.
Given the soft environment, we will continue to tightly manage inventory and spending in the December quarter.
Well, let's provide color by end market.
As a reminder, we have improved or revenue mapping by end market to be more automated system.
Well my commentary is based on our new mapping.
In year on year comparisons, we also use the updated mapping methodology.
I will begin with automotive.
In the September quarter, or automotive business was down 9% sequentially and down 4% from the same quarter last year.
This reflects the effects of a year over year decline in global car production.
However, we continue to see strong growth driver assistance Angeles vehicle content compared to the same quarter last year.
In the December quarter, we anticipate strong growth sequentially in automotive driven by driver assistance and battery management system content.
And a return to growth in our infotainment business.
Growth in battery management system revenue is expected to come from a mix of geographies.
And driver assistance, we expect to recognize revenue from new design wins, the Chinese car makers with our serial link products.
Finally, infotainment system revenue is expected to grow sequentially the across a broad range of customers.
Let me next turn to the industrial market.
In the September quarter, industrial was down 8% from the June quarter, this was softer than seasonality and modestly below our expectations.
We experienced this broad base weakness across our industrial markets.
In the December quarter, we expect both seasonal sequential growth in industrial from a broad set of customers.
This growth is from a low base slowing in the September quarter and assumes continued stability in the run rate of bookings and lead times in the quarter.
Let me next discuss communications and data center, which now includes computing.
In the September quarter cones, and data center was down 7% sequentially.
Broad base weakness in communications infrastructure was partially offset by an uptick in demand were 100, you laser driver products for datacenter applications.
And the December quarter, we anticipate comes in data center revenue to be up strongly from the September quarter.
We expect strong growth in 100, GE laser driver shipments for data centers and growth in 20, Fiveg optical products for Fiveg base station applications.
Finally, let me turn to consumer.
In the September quarter consumer was up 5% sequentially.
We experienced weakness in smartphones offset by growth in tablets, Wearables and peripherals.
Smartphones comprised approximately 35% of our consumer business in the quarter with Samsung smartphone revenue declining less than expected.
In the December quarter, we expect consumer to be strongly down sequentially with the peak of the holiday shipments for consumer electronics, having occurred in the prior Corp.
To summarize we have built maxim to be resilient and to position the company to outperform into next Mark adopter.
Well, we are clearly in a period of soft demand in certain mic uncertain macroeconomic conditions, we expect sequential revenue growth in communications and data center in automotive and industrial.
We are executing on our strategy to grow revenue with new design wins in long lived products no automotive and industrial.
Our analog business model and flexible manufacturing strategy enable consistent company profitability and stability.
Now I'll turn the call over to Brian for his first call as Maxim CFO right.
Thanks to each and thank you to everybody on the call today.
Very pleased to officially joined the box of team.
I was able to meet some of our analysts and investors last quarter and I look forward to meeting everyone in the coming months during our normal schedule of investor events.
Turning to our results revenue for fiscal Q1 was $533 million.
3 million above the midpoint of our forecast range entering the quarter, but down 4% sequentially and down 17% from the same quarter a year ago.
As change mentioned, we are now using an automated system to map revenue to end markets.
As most of you know end market mapping can be a challenge in our industry.
Given that we have thousands of products and thousands of customers.
This updated mapping does result in some changes to our revenue breakout by end market starting with the currently reported quarter.
As an eight to investors, we're providing four quarters of history under the new mapping on our website.
Also what we previously categorized as computing, which is primarily personal computing.
It's now combined with communications and data center.
This now combined Pcs and peripherals into the same category as servers.
Our commentary and supplemental earnings presentation published on our website referenced this new mapping.
Our revenue mix by major markets in Q1 was approximately 30% industrial 27% automotive.
24% consumer and 19% cons and data center.
Combined automotive and industrial was 57%.
Let me now turn to the distribution channel.
Distribution comprised 50% of maxims revenue in Q1.
We ended the quarter with just 48 days of channel inventory.
Down 11 days from the prior quarter and well below our long term target of 60 days.
The significant decrease in channel inventory was driven by the combination of our tight inventory management.
Along with stronger than expected resales in China.
China results were strong across multiple product lines.
But particularly for optical and BMS products.
Despite this strength, we believe that it's too early to interpret this as the beginning of a broad sustained upward trend in China and demand.
Given the potential impact the trade tensions maybe having on buying behavior.
Turning to the piano maxims gross margin, excluding special items was 65%.
20 basis points from the prior quarter and above the midpoint of our guidance.
The increase driven by favorable manufacturing efficiencies combined with lower inventory reserves.
Operating expenses, excluding special items were $185 million up from the prior quarter.
Reflecting impact of annual merit increases for employees.
Combined with higher R&D spending in support of new product development.
Q1, GAAP operating income excluding special items was $161 million.
Operating margin was 30.3% of revenue.
Down from the prior quarter due to lower revenue.
The Q1 GAAP tax rate, excluding special items was 13% and equal to our current outlook for the remainder of this fiscal year.
GAAP earnings per share excluding special items was 52 cents.
Three cents above the midpoint of our guidance range due to higher profitability.
Turning to the balance sheet and cash flow.
Total cash cash equivalents in short term investments were $1.8 billion down 105 million from the prior quarter.
Q1 inventory days ended at 115.
Up one day from Q4 due to improved gross margin, while inventory dollars were down 4% from the prior quarter.
Capital expenditures for 21 million.
Trailing 12 month free cash flow defined as cash from operations less capital expenditures.
The $725 million or 33% of revenue.
Free cash flow per share it was $2.64.
Our free cash flow yield this 4.6%.
Yesterdays closing stock price.
For capital returns share repurchases totaled $94 million in Q1, as we bought back approximately 1.6 million shares.
Dividends totaled $130 million in the quarter.
Based on Yesterdays closing stock price in our quarterly dividend of 48 cents per share our dividend yield is 3.3%.
Total return of cash through dividends and share repurchases was 142% of free cash flow on a trailing 12 month basis.
Now I'll turn to our outlook for the December quarter.
Our beginning fiscal Q2 backlog was $402 million.
Based on this beginning backlog and expected turns we forecast Q2 revenue to be between 525 and $565 million up 2% from the prior quarter.
Q2 gross margin excluding special items is forecasted at 64% to 66% flat with Q1.
Q2 operating expenses, excluding excluding special items are expected to be up approximately $2 million from Q1.
Driven by the full quarter effect of annual Merit increases, partially offset by continued tight spending controls.
Our tax rate for Q2, excluding special items is expected to be 13% flat with Q1.
For Q2 GAAP earnings per share excluding special items, we expect a range of 49 to 57 cents.
Fiscal Q2 capital expenditures are expected to remain in a similar range as Q1 at approximately 3% of revenue.
We expect Capex will decline towards the midpoint of our targeted range of 1% to 3% in the second half of our fiscal year.
In summary, given the current environment, we are tightly managing spending in inventory.
Both internally and in the channel, while continuing to invest prudently in our long term secular growth drivers.
Our financial model enables us to generate strong consistent cash flow and we remain committed to return, 125% or more of that free cash flow to investors.
With that I'll turn the call back over to Kathy.
Thanks, Brian .
That concludes our prepared remarks, and we will now open the call for questions.
We'd like to continued same Q and a process if you've used in previous calls we'll take one question from each caller. So we can get to as many people as possible.
Jonathan could we please have our first question.
Certainly your first question comes on line of Ross Seymore from Deutsche Bank. Your question. Please.
Hi, everybody congratulations on the solid results.
The Big picture question for you the inventory came down way more than you thought in the quarter you guys are guiding better than people expected. So can you just give us a view and do you think end demand is actually improving much or is the difference between your fiscal one Q in Twoq, just an inventory dynamic and you can break that down to any specific end markets. If you choose that would.
Be helpful as well.
Okay, we're happy to too.
So first of all.
What we're seeing is.
Lastly, we were not expecting the.
Shipments from distributors to be a strong as expected I think thats broadly because of some specific markets, where the demand was strong and.
Brian Express what those were bemis.
So are BMS products.
And some of our optical products.
But there was also a drawdown from other markets to a lesser extent I.
I think the best way to characterize the market is that.
The weakness that we had seen in the past.
Several quarters is there, but it is stable and for US we've seen a pockets, where we're seeing growth for our product lines and I summarize those in my prepared remarks, so I think that.
Even though obviously, it's a tailwind to be able to replenish distribution. We are also seeing growth in some of our markets. If you look at our.
The man or revenue picture going from quarter to quarter. We basically said the three over markets are major markets, we're going to be up.
In this quarter compared to the was the only one the other direction as consumer and Thats, mostly because of smartphones and because of the holiday shipments occurring in the previous quarter. So.
I think to summarize ending the broad based it's still pretty stable.
And there are areas are pockets of growth for the company. We're we're definitely seeing some strength.
Thank you.
Thanks Ross.
Your next question comes on line of Ambrish Srivastava from BMO. Your question. Please.
Hi, Thank you very much I just wanted to focus on the automotive segment today.
If I look at the last several quarters.
You your auto business is done much better than your peers and it's not a small business anymore.
Whether as a percent or on an absolute basis. So the question is is there a twofold one is.
Maybe yours.
So not indicative of the of the market, but just wanted to get a sense from you. What are you seeing in the end market because solid has come down this year versus early expectations and so are you seeing a stabilization and a pickup in sorry, because you're guiding your infotainment up as well, which had been specific is more solid related and then does the second part of the question is how.
How much of you talked about BMS doing better and that was the detractor last quarter. So.
Is that some specific programs that are ramping and just help us understand the auto performance not just near term, but just kind of the cadence over the last quarters in the going forward. Thank you.
Alright, alright, so let me try to summarize so you're.
You gave the answer partially through question on infotainment is our largest piece.
It will be the most correlated to a car production in the World and then obviously one car production was down last year. It was the one that had the biggest effect.
However, we are seeing strength in that and weve and strengthen that for the quarter. We're in right now to some of that businesses is coming back.
Some of it we're really guessing it's because of.
You know people adjusting to car production being down and obviously that has some effects on them drawing down on inventories. So I think that that's kind of looks like it's getting behind us on the Vms front. It was a bit of a headwind last quarter, but it's coming back pretty strong.
No.
In this quarter.
Even though it was a headwind last quarter by the way Vms was still up double digits on a year over year basis. So essentially.
We're still happy with either.
Position in that market and we're still expecting it to be growing strongly again this quarter as well.
The other bright spot there is really in or serial link business, which is which is doing very well.
And we think that that too is helping us.
Get numbers that are better than units car growth, but if you recall that's been our model all along so we.
We are.
Please with the results were getting right now and if you remember last quarter, we disclose that were over $1 billion of design wins lifetime revenue design wins last year, which was the 26% increase from the previous here. So we're very happy with our performance on the automotive side.
Thank you.
Thanks Ambrish. Thank you aren't next question comes from the line of Harlan sur from JP Morgan Your question. Please.
Good afternoon solid execution on the quarter guys and welcome to the team Brian look forward to working with you again, maybe a similar question.
Similar to Ross and Ambrish, but focused more on the industrial segment very broad base, we'll take that business declined slightly more than expected in September was just a final lay those inventory drawdown is your channel inventories were down so much and looking at the growth in the December quarter.
We still are looking have been looking good is simply that you're not catching up to consumption versus shipping below consumption.
And where are you seeing the most momentum is it SMB the broad based business versus some other verticals like factory automation any color here and industrial would be great.
Yes, so so on the industrial side, it's a mix of things Theres definitely.
One of the questions that we sometimes get asked is no. It's it appears that your shipments are below what the industrial customers revenues are which definitely is true.
And obviously they have to adjust to what's happening to them and there is a low channel of inventory theres. So much distribution there so with the customer. So therefore, I think we believe theres no real way Harlem to get this data very accurately we believe that they have drawn.
Down most of their inventory.
And clearly in distribution.
Inventories have gone down as well for us.
So.
From a short term outlook. It seems like there is some stabilization that's happening in the channel so.
For the broad based the customers that is that is what we're seeing.
There are also some parts of the verticals.
That are actually doing better than than they have been in the past.
And they are expected to do better this quarter as well.
I think if you remember verticals or markets like 80 and financial terminals in those are.
Beginning to do better for US is will in Q2, so it's kind of a mix.
I think that it seems like.
Some of the inventory correction in the.
Hello, and customers is is happening and we're kind of seeing the effects of that.
Great. Thank you.
Thank you haven't.
Thank you. Our next question comes from the line of CJ Muse from Evercore. Your question. Please.
Yes. Good afternoon. Thank you for taking the question.
Very impressive gross margins in the current environment.
Curious if you can kind of walk through.
How we stair step from 65% potentially the high end of your target model model of 70%.
What are the key assumptions.
Mentally topline but.
Elsewhere. Thank you.
Hi, This is Brian so I think that there's there's a couple of things. There is certainly the overall revenue level on we've been at a depressed level.
More recently at 65% gross margin in the September quarter at 533 million.
We feel like that that's a solid base and.
Get above that can get up into our stated target range of let's begin at 67%, we really need to get back to that 600 million dollar per quarter revenue run rate and then to get to the high end of the range we need to get.
Beyond that 600 million Mark so that'll come with higher.
Higher factory utilization.
It would also probably entails an improved mix with industrial coming back which is our highest growth margin gross margin end market. So I think that's the path where we are today at 65, we feel is solid and we have the ability to build off that base and looking for some additional revenue growth.
Helpful. Thank you.
Thank you Jay.
Thank you aren't next question comes on line of FX area from Bank of America. Your question. Please.
Hi, This is Jay Muzak look on for the back thanks.
We ask the question.
So we've seen a wide difference in earnings outlook for the quarter from companies that are exposed to mostly the same end markets like you tie NXP. So I'd be interested in any color you can provide on what you think could be causing this discrepancy is it customers reacting differently to analog for us.
Solar products or you asked for non U.S. or or something else any color there would be great.
Yes, Jim yet I mean, it's a good question are we really mainly see what we're experiencing and we don't have the details of what others are experiencing but im going to repeat what I said earlier Ross.
We are.
We've been in to a broad market weakness.
For for the last several quarters, but it's quite stable when we're not seeing the weakening in that.
Some of the forecast, we're giving with growth in three of our end markets is really coming from.
The strength of the product line.
In those in those markets for us and the fact that our inventories are very lean both at the company in distribution, obviously helps us a lot. So we're very well positioned for strong performance when theres any turn in the market is to.
Messages given by other companies you really have to no other details.
Of those companies and it's not I don't think its.
We haven't of data really tell you what's the difference between the three companies that you just mentioned.
Got it thanks.
Thank you Jamie.
Thank you. Our next question comes on line, Okay gotten back from Morgan Stanley . Your question. Please.
Yes, thanks tons, just a question on the common infrastructure market, which is notoriously volatile can you talk about just data centers versus traditional wireline and kind of what you're seeing from a capex perspective.
Okay. So.
Let me do my best here so.
Our focus in Comms and data center really has been mostly on the data center side.
And less on the on the wireline side.
So in the datacenter side, we had and it's it is pretty volatile as you said.
We did have some strong growth in or one hundredg products last year. If you recall and then we went into a period were.
There was over inventoried market. So it kind of went away and that we were signaling that that was beginning to show signs of coming back.
And we are seeing that coming back basically but it is I mean, there's no doubt that the datacenter business is going to grow but trying to figure that out from the semiconductor side is actually very difficult because it's very masked by what's happened in the chip what happens in the channel.
All I can tell you is that the 100, Jean Marc good for us or it seems to be back and we have.
Strong shipments in the.
On the on the.
On the communications wireless side, I think we talked about that as well our 20 fiveg products are pretty strong and in general the broad base of.
Let's say wireline communications products have been weak for us and this is where we so most of our older product lines that are analog.
Housekeeping products et cetera, and that has not been is strong market for us and frankly in the long term as I said, it's a dated product line. So we don't expect it to be good we expect our growth to really come from optical products in this market and also from power management products in this work.
Got it thanks.
Thank you Craig.
Thank you. Our next question comes from the line up John Pitzer from Credit Suisse. Your question. Please.
Good afternoon, guys congratulation on a strong results. So I just want to go back to the December guide. If you look at sort of this correction for the industry your year over years.
Worse early on and so I guess it makes sense to me that perhaps your year over year start to get better more quickly than the industry as well, especially given your product portfolio, but I'm just kind of curious given how much inventory came down in the calendar third quarter, especially in Disti. When you look to into sort of the December quarter guide towards.
And do you think what do you think inventory is going to end up in disti by the end of the quarter to what extent as this kind of just we got we to lean in the Disty channel and you're benefiting from that versus kind of real demand in December quarter.
Hey, John I'll try to take that this is Brian .
No we should get some some revenue growth associated with channel replenishment and we would expect days of inventory in the channel.
To come up from what was an extremely low level in the September quarter, but I think in terms of trying to forecast exactly where that number lands.
It is highly dependent upon resales and and that's the piece of the puzzle that it's hard to forecast so we've seen.
Steady order trends, we've seen very steady resale activity, but how that tracks between now and the end of quarter.
Is is opened to variability and so that's that's a variable that makes it hard to pin down.
The answer with precision, but we would expect some tailwind from.
An increase in the channel inventory level.
Thanks.
Did let me just add to that I think when we discuss this internally, we said that we would improve it but not likely to go all the way back to our target in one quarter, so hopefully that helps as well.
Perfect. Thanks terms, that's very helpful.
Well. Thank you John Thank you. Our next question comes from the line that Matt Ramsey from Cowen Your question. Please.
Hi, This is Josh Buckhalter on behalf of Matt. Thanks for taking my question and congrats on a solid guidance.
There's been a lot of questions on inventory in the channel I wanted to ask a bit.
Longer term one.
Given the debate following a T.I.s distribution strategy maybe helpful to here I guess, how you guys are thinking about it and if there's any potential impact competitively from T.I.s decision to deemphasize the channel. Thank you.
Sure I'll take that one.
So.
There was obviously a big announcement made by Texas instruments like you mentioned.
We are as you know when it is our franchise distribution partner.
We expect the.
The change that Texas instruments announced to be beneficial to us and we're discussing opportunities with avnet.
But as you know most high performance analog sockets are not pin for pin compatible so we would not anticipate an overnight change to our business.
We continue to view distribution as a valuable partner.
Of our global reach the customers. So we think we can benefit from it it's not going to happen quickly because of the nature of the product line that we have.
But we're definitely working with our distributors too.
We can take advantage of it.
That's very helpful. Thank you.
Thanks, Josh.
Thank you. Our next question comes liner toys funds from Stifel. Nicolas Your question. Please.
Yes, Hello, This is Jeremy Kwan for Tory.
Just wanted to you.
Maybe focusing on lead times I know you mentioned a little bit.
On the call, but just wondering what your customers are sharing with you in terms of.
Returns on you and also what your according to customers and maybe if you also provide a little bit colour on the linear during the quarter, how it's been thus far in in the fourth quarter.
Okay. So.
Brian can help you out on this one but.
Customer given lead times to Maxim have been fairly consistent.
It's really not been changing a lot in the last few quarters. So it's pretty consistent so no behavior change from from the customer standpoint.
Your other question about linearity was that when we provided our guidance.
We assume that.
Bookings in the lead times, we're getting from customers.
Would be good enough to support that.
And and I think that.
This quarter is a little bit tricky because it had it ends in December so, it's really hard to exactly model, but the linear it looks like frankly so.
I know they were going to be able to give you a lot of data based on the but.
Customer order lead times look normal and we don't see anything out of the ordinary and.
I think we are starting with a pretty strong backlog for the quarter as well as.
Brian mentioned earlier.
Thank you.
Hey, Thanks, Jeremy.
Thank you. Our next question comes from the line of Mitch Steves from RBC capital markets. Your question. Please.
Hey, guys. Thanks for taking my question I, just had one just more kind of high level. So one thing thats kind of coming up in the semi space. It looks like legacy products, having a harder time kind of getting the components any whether it be lccs capacitors in kind of smaller products like that and so I'm wondering is is that potentially one of the reasons. Why you guys are seeing better demand.
Yes, you are selling into higher end products or are you guys see basically better demand across the board. So I guess I guess the crux. My question is if you guys are say more upside from high end products and that's why gross margin went up or if it's really just a function of demand.
Hi, I'm not sure.
We've not seen.
On all of our discussions with.
The sales team and the business units, we've not seen anybody brings us up as a correlation.
Our products.
Seeing more demand returning because we're in the high performance, sorry, I've not heard that.
Internal discussions so I won't be able to really comment on that frankly.
I think that what's helping us is that we really managed through.
Week period by keeping inventories low and.
The margins are being helped by the fact that inventories being low also helps your inventory reserves.
Brian talked about.
So it's kind of its really running a tight ship basically is what we things happening in terms of margins.
And on the demand side.
I don't know how to form this correlation that.
You are seeing might be there might be there might not be there.
I kind of doubt frankly.
Understood. Thank you.
You're welcome Thanks Mitch.
Your next question comes on line that William Stein from Suntrust. Your question. Please.
Great. Thanks for taking my question, Tony I think you talked about strength in China, and I just want to make sure I understand I think you said, it's in optical components and then also in battery management systems I get that right or is there something else. There is that all in the channel or any of that direct and then.
Also related to this.
Have you considered whether some of this might be.
Pull in relative to tariffs.
Or do you think this is real demand. Thank you.
Yes, so I think on the specific I think your question is mostly about.
The distribution.
We're in market sales or are you asking about the current quarter Eve well either I think you mentioned these two a strengths and I'm just not sure. If I heard this is part of the distribution commentary or.
Or if this is the direct business I see okay. I'm curious about in China generally do we think that that you're seeing pull ins because of some concern about tariff rules tariffs getting more problematic.
Yeah, it's actually not that easy to two to three pseudo all the way to that.
The strength, we're seeing is.
In China is mostly on.
The year very management system products, especially this quarter.
And we're seeing it on the optical products.
And those are the largest ones that we see.
No I don't think those are related to terrorists.
And the.
Question that we sometimes get is the tariffs that are scheduled to be added.
And I think in mid December which affects a lot of consumer products.
I don't it's for that because most of our consumer shipments have already happened.
And that all occurred in Q1 so.
We don't really see this correlation but I'd have to be the first to admit it's really hard to.
Get this question even answered by Conns customers. They don't want to really talk about it so.
We are feeling is that its unrelated, but we can't say that.
Definitely.
Thank you.
Thanks.
Thank you as a reminder, ladies and gentlemen, if you do have a question at this time. Please press Star then one.
Our next question is a follow up from the line of Harlan sur from JP Morgan Your question. Please.
Great. Thanks.
For taking my follow up so let me think about the March quarter, you know the tempted to historical tailwind for the business.
In the rapidly your smartphone customer and positive seasonal trends in your industrial business and typically it's up quarter over quarter in March I know you probably don't have a lot of bookings visibility our backlog visibility from March well. What you do have is three month and six month customer forecasts.
And so I guess the question is without without really handset customer, but with other let's say positive seasonal trends in the other businesses do you think that the seasonal pattern changes much relative to kind of historical patterns.
Harlan you know is pretty well.
So obviously.
I want to give guidance out to the March quarter.
Historically, what you've said.
It is not just for us, but in general is true industrial kind of gets stronger.
In the March quarter.
Our consumer business, which was very much tied to Samsung would get very strong in the March quarter, but I want to remind you that we have less content in some signal so that should not be big effect. I mean, we we think that our projection is that our content that Samsung will be.
In the mid single digits this year versus about 10% last year I'm talking about fiscal years, though.
So some of the seasonality is changed especially on the consumer side.
The others, we expect to be kind of similar.
But I don't think we have enough information to go really go beyond that to reach and give a.
You know guidance into the March quarter.
Okay. Thank you.
Okay. Thanks.
Thank you. Our next question comes on line of Christopher Rolland from Susquehanna. Your question. Please.
Hi, This is David I rely on behalf of Chris. Thanks for taking my question just really quick I wanted to ask about why way, which last quarter you guys pointed out as a headwind for the business. Just is there any update there were able to ship anything to them in the quarter. Just just any color on the white thing would be great.
Sure David.
In the September quarter, we shipped about a million dollars of revenue to walk away.
And in our December quarter forecast, we're assuming approximately the same amount of revenue.
Does that answer where you were looking for thank you very much.
Youre welcome. Thank you David.
Thank you. This does conclude the question and answer session of today's program I'd like to and the program back to Kathy for any further remarks.
Thank you Jonathan that does conclude today's conference call. Thank you for your participation and for your interest in Maxim.
Thank you, ladies and gentlemen for your participation in today's conference. This does conclude the program you may now disconnect good day.