Q1 2021 SiTime Corp Earnings Call
Yeah.
Yeah.
Good afternoon, and welcome to <unk> first quarter 2021 financial results conference call.
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If anyone needs for question at any time during the conference call. Please press the star key followed by the zero on your Touchtone phone.
As a reminder, this conference call is being recorded today Tuesday may for its 2021.
I would now like to turn the call over to Leann Sievers of Shelton Group Investor Relations Liane. Please go ahead.
Good afternoon, and welcome to <unk> first quarter 2021 financial results conference call on the call from sites from them over just for shift Chief Executive Officer, and Art Chadwick Chief Financial Officer before we begin I'd like to point out that during the course of this call. The company may make forward looking statements regarding expected future.
Including financial position strategy and plans for future operations tiny market in other areas of discussion.
Not possible for the company's management predict all risks nor can the company assess the impact of all factors on its business or the extent to which any factor for combination of factors may cause actual results to differ materially from those contained in any forward looking statements in light of these risks uncertainties and assumptions the forward looking events discussed during this call.
May not occur and actual results could differ materially and adversely from those anticipated or implied neither the company nor any person assumes responsibility for the accuracy and completeness of the forward looking statements. The company undertakes no obligation to publicly update forward looking statements for any reason after the date of this call to conform these statements to actual results.
Or to changes in the Companys expectations for more detailed information on risks associated with our business. We refer you to the risk factors described in our 10-K filed on February 16th 2021, as well as the company's subsequent filings with the SEC also during this call we will refer to certain non-GAAP financial measures, which.
Measure of company performance. These non-GAAP financial measures are provided in addition to and not as a substitute for or superior to measures of financial performance prepared in accordance with U S. GAAP. The only difference between GAAP and non-GAAP results is stock based compensation expense. Please refer to the press release issued today for a detailed reconciliation.
Between GAAP and non-GAAP financial results I'd now like to turn the call over to Jeff. Please go ahead.
Thank you Leann good afternoon, and thank you for joining on today's call.
I am pleased to report to the first quarter was another solid quarter with revenues of $35 5 million representing growth of more than 63% year over year and above the high end up for guidance.
Come on Gulf of a very strong fourth quarter, we have continued to see increasing order rates for our timing solutions.
There are several reasons for site times tremendous year over year growth.
First of all with the only semiconductor company that is solely focused on timing as we have mentioned a few times. We're also the only company to all for all high volume timing categories oscillators clocks and resonators.
Moreover, we are committed to developing the higher value products that solve difficult timing problems. We use the systems level approach that is supported by a deep expertise in mems and analog packaging and algorithms.
As a result products like elite and Emerald perform up to 20 times better than our competitors cash.
<unk> recognized this focus and the value that we bring to them and they place their trust in us.
As an example of distrust during Q1, we secured more than 40 design wins for elite Emerald and the enduro product line, which is in comps or communications applications, such as <unk> <unk> small sales remote radio heads and optical modules as well.
In aerospace defense applications, such as satellite Communications G. P. S. G N S Hudson transponders.
Each of these applications the site on device was chosen because it solve a very specific problem.
And we believe that this is only the starting from scratch.
Sure.
This is only the startup of our journey.
With these customers.
As we have deep technical engagements with key customers, we understand for customers' roadmap, which enables us to do develop better major what we call platform products.
As leaders, we also uncovered specific opportunities that can be addressed by a rapid release strategy, which we call derivative products, which are simpler modifications off on existing platforms.
By more stringent future technical requirements and communications in cloud infrastructure automotive and mobile Iot, we plan to expand into higher value oscillators and clocks over the next five three to five years, and we expect to deliver over 100 platforms and derivatives in that timeframe.
About a year ago, we reevaluated, our pricing strategy and decided to change prices on a lower margin business, primarily in the applications, where we had on offered shorter lead times.
We've expanded that effort to more applications in 2021, where we'll see the full year benefit of that.
As an example on one of our popular product families.
ASP or average selling price increased by 20% from 'twenty 'twenty to 2021, all other gross margin improvements airports, such as product mix changes, which are in favor of higher ASP products and lower product costs continues strongly of course as well.
In the current tight supply chain environment site times, Fabless model and product program ability continue to provide significant differentiations.
As a reminder, site EMS products are 100% programmable and we can be more responsive than our competitors, who are reliant on the courts based fixed frequency solutions.
Customers are also taking comfort in.
Having a non overlapping supply chain from say time and many of them have approached us recently to help in their in their supply chain environment.
We have selectively engaged with about 25 key customers, where we believe we provide exceptional value.
And a developing multiyear commitments with them.
Also in anticipation of the rising demand customers are also placing orders much earlier in fact more than half of our bookings in Q1, 2021, well for deliveries, which were 5% to 12 months out in the future, which gives us unprecedented visibility into 2021 revenue.
Sure.
We believe that as customers experience the benefits of using <unk> technology.
Tend not to go back to the older Court suite solutions and this results in even more opportunities in the future.
From a longer term perspective, and looking at the entire semiconductor industry I believe that we're in a golden age.
And we expect it to continue for the next few years.
At same time, we believe that we also have a multi year growth opportunity in timing specifically as connected devices proliferate in all parts of our lives.
In order to pack more features and functionality these devices need timing chips with higher precision smaller size and higher resilience and other features.
As the leading provider of high value timing site and can only stand to gain tremendously from this key trend.
With that I'll now turn the call over to art to discuss for first quarter results in more detail and provide our outlook for the second quarter of 2021.
Bart.
Great. Thanks for Jeff and good afternoon, everyone.
So today I will discuss first quarter 2021 financial results and provide some guidance for the second quarter of 2021.
I'll focus my discussion on non-GAAP financial results and refer you to today's press release for a detailed description of our GAAP results as well as a reconciliation of GAAP to non-GAAP results, which exclude stock based compensation and related payroll tax expense.
So as rich mentioned the first quarter was another great quarter for US we had strong year over year revenue growth continued gross margin expansion and strong year over year growth in non-GAAP net income.
Revenue for the quarter was $35 $5 million up 63% over the same quarter a year ago with.
With revenue growth in each of our major market segments.
Sales into our mobile Iot and consumer segment, which consists of sales into mobile phones wearable devices and consumer products for $22 $4 million up 81% over the same quarter last year.
Sales into our industrial automotive and aerospace segment, which includes sales into automotive industrial medical aerospace military and broad based sales were $7 3 million up 31% year over year.
And sales into communications and enterprise, which consists of wireless infrastructure, including five G data center and networking for $5 8 million up 32% year over year.
Our largest customer accounted for 37% of sales this quarter.
Gross margins continued to expand non-GAAP gross margins were 54, 1% up 60 basis points sequentially and up more than 700 basis points over the same quarter last year.
Non-GAAP operating expenses were $15 $3 million comprised of $8 2 million in R&D and $7 1 million in SG&A.
This was up from $13 3 million in Q4, as we expanded our workforce by more than 10% this quarter primarily in R&D.
As we continue to invest in advancing our technology and expanding our product portfolio.
Non-GAAP net income was $3 $8 million for 19 per share compared to a $2 2 million dollar loss in the same quarter last year.
Stock based compensation expense and related payroll taxes were $7 $4 million up from $6 2 million in the fourth quarter due to new employee stock grants and our performance stock based bonus plan.
Our big financial event. This quarter was the follow on stock offering in February we sold one 5 million shares of stock at $127 per share net $181 $6 million after fees and expenses.
Mega chips also sold one 5 million shares, which increased the public float and liquidity of our stock and reduce their ownership to just under 32%.
Trade receivables for.
$22 2 million with Dsos of 59 days.
Inventory was 15.0 million up from $12 4 million at the end of Q4 as we ramped production this quarter in anticipation of higher Q2 sales.
In regards to cash flow, we generated 6.0 million and positive cash flow from operations.
We invested $4 2 million and equipment on assets.
We added a $181 6 million from our stock offering.
And as a result, we ended the quarter with just over a quarter billion dollars in cash and no bank debt.
I'd now like to provide some guidance for the second quarter of 2021 for.
First of all the trends that are driving the need for high performance timing solutions continue to drive significant year over year revenue growth.
Additionally, as Rick just mentioned many of our customers are now placing orders up to 5% to 12 months in advance, which is giving us the best visibility we have ever had.
For the second quarter, we accept we expect sales to increase 10% to 15% sequentially.
At the midpoint that would be about $40 million or 85% higher than the same quarter last year.
Sequential growth will come primarily from comms enterprise and industrial markets, while sales into mobile Iot and consumer will be essentially flat quarter to quarter.
From Q1 to Q2.
We expect continued gross margin expansion of at least 50 basis points sequentially.
Operating expenses will increase due to an expanding workforce. We expect Q2 non-GAAP operating expenses will increase about 10% sequentially to approximately $17 million.
Yes.
So we have a significant cash balance now interest rates are low which means our interest income will be relatively nominal.
<unk> is expected to be about $50000 for the quarter.
The basic share count on Q to be approximately 19.0 million shares and.
And the dilutive effect of employee Rsum will add approximately 2.0 million additional shares taking the total expected diluted share count to approximately 21.01 million shares.
Stock based compensation expense is expected to be approximately $7 $5 million.
And based on this guidance just given.
We expect second quarter non-GAAP EPS.
We'll be between 21 and 25 per share.
On a slightly different topic, ESG, which stands for environmental social and government governance is getting more on investor attention. These days and I would like to make a few comments.
First of all we believe the culture here at Si time, aligns very well with basic ESG principles.
We promote and inclusive environment by valuing the contributions of all employees and work to ensure our employees feel seen per valued and respected.
We believe diversity makes us stronger and diverse workforce supports creativity problem solving and better decision making.
We also believe it's important to minimize the environmental impact of our products and operations to ensure a sustainable future. We are working to enhance our sustainability practices by developing and implementing policies to reduce our carbon emissions and consumption of energy and water.
We recently went live with our ESG and corporate governance, what website and we encourage interested investors to visit.
So in summary, our workforce continues to perform extremely well while working from home our product portfolio continues to expand with differentiated products that address large and growing markets.
We have an enviable list of tier one customers and now and even stronger balance sheet. We believe 2021 will be a great year for us and with that I'd like to turn the call back to the operator for Q&A.
Okay.
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To ask a question press star.
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To withdraw your question press the pound key.
Please standby, while we compile the Q&A roster.
Your first question comes from the line of Tory Burch.
Burke with Stifel.
And your life.
Mr Van Berg.
Your next question comes from the line of Quinn Bolton with Needham.
Hey, guys. This is Michelle on for Quinn Congrats on the great results and thanks for taking the question.
For this for my first question I think it's been about a year since your first clock IC solution was launched for Cascade product.
I was wondering if you can give us an update on the progress you're making with that product family in terms of.
Design wins or customer reception has been like.
Relative to your expectations or whatnot. So just any color there would be helpful.
Sure.
You know our Cascade product line is really intended for our communications product line and enterprise and in that area. In particular, we have been doing great business with Cascade in the small sales in the day you are distributed unit.
In the edge server market.
And also.
In the smart smart Nic cards, and front haul and mid haul switches. So the names of some of the customers that we have talked about in these areas are of course.
Nokia.
We've been involved with Samsung networks Intel.
Xilinx Dell.
HP enterprise.
Das on some of these other customers. So I think we've done really well with that product.
And we fully expect to come out with more products in that space as we go forward because as we've mentioned before we use a companion approach, where we get the Cascade product line and other future emerging product lines to join with their oscillator products.
Basically work is that many sub system for our customers and thats a immense value to them.
Great. Thanks.
Maybe just one quick one for our I think.
Last quarter there is.
And then.
Maybe you mentioned.
That the first half of 'twenty, one revenues for probably going to be higher than normal.
Percentage of the annual revenues that is so I'm just wondering as you look out to Q Q do you still or I'm, sorry, not to keep second half.
Do you still see the first half being a higher than normal percentage of annual revenues or or is there an update to that kind of that outlook and also if you don't mind just quickly on the gross margin guidance did you say expansion sequentially 50 basis points. So if you could just clarify that.
Yes, so great questions I'll start with the latter yes up at least 50 basis points from Q1 to Q2.
And also as I mentioned on the call. Our gross margins have expanded really dramatically over the last year just to repeat in Q1, our gross margins were up over 700 basis points over what they were just a year ago in Q1 of 2020.
To answer your other question yes.
We are expecting less seasonality this year than we've seen in past years.
And I think that remains to be true.
If you look at our sales growth in Q1 that was up 63% over the same quarter last year and at the midpoint of my guidance Q2 would be up 85% year over year.
I expect very nice growth in Q3, and Q4, but the percentages year over year will not be as high as what we saw in the first half of the year.
Primarily because we're just seeing less seasonality its not going to be as backend loaded this year as it was in past years.
Got it okay. Thanks, that's all for me.
Congrats again.
Yep. Thanks, Thank you.
Your next question comes from the line of Alex <unk> with William Blair.
Hi, everyone. This is Jake on for Alex Congrats on the great quarter. So you discussed for your design wins, which is up from 30 last quarter can you walk us through whats keeping that help you increase these win rates versus the competition and how are you expecting that to progress throughout the year.
Yeah I mean.
At at the highest level, it's the introduction of our new products typically we've announced the Cascade product line, the Aetna product line.
Those have helped us and we have maintained traction with elite enduro.
As well as our Emerald product line, so new product introductions and traction with older products that have been in the market for a while.
Second is I think an overall shortage situation in semiconductors in general and timing and specific has given us a boost as well.
While as I explained in past times.
Many of our design wins come as a result of higher performance, but I've also maintain debt because of our advantages on the business side, which include supply chain benefits quality reliability.
And.
And semiconductor supply chain because of all of these customers in the state.
Times have discovered the value proposition around debt and we are certainly expecting and and getting in getting customers who value. These pieces of it. So I think all in all it's a combination of our products and some very specific conditions that we bring to bear.
In the tightening market.
Thanks for the color congrats again on the great quarter.
Great. Thanks.
Up next is Chris Caso with Raymond James.
Yes. Thank you good evening.
I Wonder if you could expand a little bit on the comments you made in the prepared remarks on on pricing.
And the extent to which you were able to get some some higher prices from your customers is this.
A function of new design wins, perhaps raising prices are you able to raise prices on existing customers given the environment.
Yeah. So thanks.
We did take a very close look at some of our lower margin.
Revenue.
Last year and this year and we basically looked at that and decided that was time, we started to move some of that app can do more close to our corporate levels and so most of our most.
Most of these products were in the consumer space some of them on the mobile space somewhere of them were on the lower industrial space. So we were able to as we rollout our pricing in a very.
In a very.
Coordinated way with our customers.
Think we were able to retain most of them because they saw the value proposition that we had thought as far as the new business goes most of our newer products, particularly tend to be in the networking industrial.
Automotive enterprise data center space and they tend to be higher pricing as we have discussed anyway, because that's more of a premium part this was bringing somewhat for legacy business up up too.
Corporate levels as.
As well.
Alright, thank you.
As a follow up.
Obviously, there are a lot of supply constraints around debt.
Yet you do use foundry for the analog portion of your product and it does sound like Youre getting some some some good bookings farther out.
To what extent are you also seeing supply constraints are there any constraints within your manufacturing network, which would tend to put a cap on the revenue opportunity for you.
Yes, I think while we haven't had any specific timing constraints and we've been well served by our suppliers like Bosch and TSMC and our Oss. It is fair to say that.
We do tend to.
We do tend to juggle some of the new business coming in.
There is the tightness that is that is impacting everybody. It has not curtailed any of our revenue or revenue growth, but it does produce put a little bit extra burden on the operations and sales operations teams and managing the business I don't think it's on anything which is particularly.
Significant it is it is onerous, but it's not done.
For dealer business any anyway.
And at this point, we feel pretty good debt because of our relationships with our suppliers and because of the fact that we are a net add to the Tam that we continue to get.
All the all the wafers that we need.
Got it very helpful. Thank you.
Great. Thanks, Chris.
Your next question comes from the line of Blayne Curtis with Barclays.
Hey, guys. Thanks for taking my question and congrats on a great quarter.
Maybe just from a very high level can you just help us for the June guidance.
50% of your business was flat year, obviously, then seeing some pretty sharp sequential growth you mentioned com enterprise and industrial if you could maybe speak to the products for applications that are kind of driving that it's because it's a very nice acceleration from what you've seen on those segments.
Sure. So I'll make one comment on comps in enterprise in Q1.
As <unk> mentioned we.
Have have worked very diligently to make sure that we don't have any supply constraints on our ability to satisfy our customers, but some of our customers have been challenged to get sufficient parts for their products and we actually had one com's customer in Q1 that could not secure enough.
Parts from one of their other vendors and that reduced what we were able or what they needed from us in Q1, So our comms enterprise revenue in Q1, even though it was up 33% year over year. It was down just slightly from Q4 because of that it will come back very strong in the <unk>.
Quarter, and it's kind of across the board for US It's in data center.
It's in <unk> applications.
Basically.
All of those areas that drive our comps and enterprise is kind of across the board and we're expecting to see a pretty strong uptick from Q1 to Q2.
Yes.
Go ahead and read Josh I don't know if you'd add to that yes.
Yeah, I was just going to say a little bit more color the data center market.
Whether it's on the surface side on the switch side alone is about <unk>, but about $100 million market for us and we continue to find a lot of design wins in that space.
Also find alert on design wins in the optical modules that had been growing we've mentioned that before in previous.
Previous earnings calls and finally.
The market for the switches the front.
The front and backhaul switches as well as the servers in the in the edge continues to be a very good very good market for us so far.
Great. Thanks, and then I was just.
Wanted to ask you you mentioned 25 key customers I guess, so these are existing customers and I guess.
One and then I was just kind of curious.
The nature of the multiyear agreements here.
Is it that they are worried about supply or kind of whats the catalyst I guess for engagement.
Switching to these multiyear agreements with these customers.
Yes, I think some of them are in fact, new customers that came to us because they saw this tightness of supply.
They had been talking to us.
Or we're looking at some products and then they accelerated those when the tightness of supply is starting to happen and in fact, we actually got.
A lot more than these 25.
Coming into the pipeline, but we looked carefully at where we are clearly providing value and where it was not someone who is trying to buy from us on a panic basis.
And wouldn't be a long term customer for us. So I think we're pretty diligent in doing that.
The second part is that the.
The.
The belief that we have is that.
<unk>.
This is evenly weighted between people who come to us for performance as we've mentioned in the past and now increasingly those who are seeing the benefits of diversifying their supply chain away from courts, which is kind of monolithic and has some chokepoints, which would not be evident before for them.
<unk>.
And in recent days recent months with recent events have.
Have become much more evident to our customers that the debt the men's or semiconductor based supply chain is a lot more robust and resilient not to mention of course, the quality and reliability. So these are the factors and as I've mentioned before once the as they come to side time, they almost never leave site on.
Unless we.
Yeah, they almost never leave site on them. So I think it's a great place to be.
And then maybe just finally for art I was just curious on the Opex.
I guess for bringing it up kind of commensurate with revenues or particular areas that you're investing in and that's why it's coming up and kind of any way to think about the rest of the year.
Yes, so we have been stepping up our opex, but that's because revenue has been.
Growing very substantially we're still pretty much keeping to our model.
My guide for Q2 for example.
Revenue would be up 85% year over year.
Opex guide would be up I calculated 28% year over year, so that's well less than half of my topline growth, but with a higher topline growth rate. We are hiring we're hiring primarily in R&D as I mentioned in my in my discussion.
And thats kind of across the board in R&D, we've hired a number of folks into our Mems group a number of folks into our analog group and a number of folks into our systems group.
No.
We're investing much more heavily and we think this will pay off.
Going forward by improving our technology, continuing to improve our technology and expanding our product portfolio.
And I don't know for retail.
What are you specifically, yeah and very specific to you had mentioned the 100 platforms and databases that we intend to all for I think we've certainly given that.
Significant boost.
Then than in previous times, because of the recent successes and growth and the opportunities that we see.
Great. Thanks.
Thanks, Brian.
Your next question comes from the line of Corey.
Barrick with Stifel.
Yes. Thank you <unk> art congrats on another great quarter I apologies for my technical issues before.
On my first question is on your Programmability.
How how is that helping you.
Manage your own inventories and also help customers to increase their reliance there is their resilience and their supply chains, because obviously there.
Probably dealing with very very extended lead times right now from the discrete company. So yes.
Yes, if you could talk little bit about how the Programmability factor is helping you.
Get some more design wins right now.
Yeah.
So.
Customers have a couple of things going on.
One is that there is the tightness of supply of course, and so they can't get as much per second thing, which comes together is that they have.
On unpredictability of supply in other words, they may not have product and then they suddenly have product.
So in these times the Programmability very specifically is upheld.
Some of the customers because this has been day urgently tend to need a product or.
They were expecting to use a product with X frequency.
And they started to get.
More availability and on other product until now.
Wanted our product to be a wide frequency is an example of programmability. So I think.
That's one way to do it the second is that.
In general.
As lead times of other timing products, particularly in the area of courts tend to go out even longer than they normally have.
Customers still find that in spite of the fact that we've increased our lead times were.
Still.
At a relatively reasonable level of lead time advantage and so they tend to naturally gravitate to that because it's a much more reliable source of supply.
For them.
So I think that our programmability stands us in good stead.
In these two waves.
Great and as my follow up could you just elaborate a little bit on the pricing increase for the one sort of legacy product family.
Just trying to understand the rationale there.
Did you just see more use cases for it with more customers.
Yep.
Yeah, Yeah, so basically what happened is that.
As you know we've talked in the past about being a premium supply chain vendor.
And our products delivering exceptional value and therefore being priced at the premium level.
Also happen to have other products from as you said, the legacy which are not necessarily significantly differentiated.
Across performance, but what we did find is that at this time of tightness. It did make sense for us to have.
Any revenue coming from lower gross margin than what we think it was debt that is debt up products deserve. So we went out and started.
Increasing prices last year as well as through this year.
At some of our customers, where we think it warranted it and actually the response was pretty positive by and large most of our customers stayed with us and in fact, we discovered.
The ability to.
Longer term relationships with them because they showed us the appreciation.
Off the support we've given them in the past and future support by signing long term contracts for that.
Great color, Thank you and congrats again.
Great. Thanks Jordan.
Your next question comes from the line of John Pitzer with Credit Suisse.
Yes, good afternoon for gesture alright, thanks for letting me ask for questions. Congratulations on the solid result.
I'd like to go back to your prepared comments around bookings.
I think I heard you say that about half your bookings now or somewhere between 5% to 12 months in duration, implying pretty good visibility I was hoping maybe you could put some context around what kind of a normal bookings pattern looks for you and as you think about the improved visibility on how much of this is just a reflection of sort of the tight.
The environment, we find ourselves in how much of it is kind of company specific demand drivers that just looked good as the year unfolds.
Yeah.
So welcome John.
So.
We find that in the past, there's two things going on so the answer to what has been typical isn't as clear for two reasons. One is that our products in the last year and a half have tended to be much more higher end, which is for us means communications and.
And enterprise.
So there is that trend going on overlay that with the tightness in the supply overall and then the particular tightness in timing supply.
I would just say, though I would guess to say that.
Sure.
Deliveries were.
For more like.
Three two.
Eight months out in the future.
Now, they're five to 12 months out in the future.
I believe that this trend is going to continue for a while again because of a macro event, which is I believe this tightness will continue for a while.
Maybe a year on a half maybe two years I think that our products from continued to be those debt.
Net tend to be longer longer term and higher value and I also believe finally debt, even those customers that come to us because of supply chain issues.
Are unlikely to go away so.
Even though it just remains to be seen we don't have data on this I would say that I would I would expect that we maintain this kind of visibility going forward into the future.
That's helpful. And then maybe my follow up on last quarter, and you are probably going to regret doing. This you were helpful enough to kind of give us a sense of what the largest customer might look like when you guided margin and you've got pretty close to that number.
You guided mobile Iot consumer flat sequentially can you differentiate between largest customer and other the reason why I ask is if you exclude the largest customer and margin you saw really good sequential growth in that business and I'd be curious as you answer the question what drove the strength ex the large customer in March yes. So.
So I can offer some color on that.
Expect our largest customer.
In Q2 will be somewhere less than 25% of revenue. So that's down from 37% in Q1, which means that.
Our consumer Iot ex our largest customer should see some very nice growth from Q1 to Q2.
And let me just let me just add a comment to that I don't want people thinking that our largest customers going away by any means we expect sales to that customer to increase very nicely in the back half of the year as it as it has in past years.
Perfect. Thank you.
Sure. Thanks.
Your next question comes from the line of <unk> Desilva with Roth.
Cash at all.
Hi, Josh Hi, art, congratulations on the progress here.
A follow up on the lead time question can you guys talk if the extension of lead times and the significant lengthening applies across all the segments equally or are there some that are particularly.
Extended versus others.
End market segments, I think yes, I think that they're all pretty tight.
They're just very different I think the consumer segment is pretty tight.
I think.
The Iot segment is pretty tight.
The.
The comps enterprise data centers pretty tight automotive.
It's very tight automotive as you know has made all the headlines for the Boston lender.
On the probably the one that's not particularly tight most surprised mil aero.
But it still continues for robustly and it's such a sort of a cranking away kind of business that debt.
It's hard to tell but I would say, it's pretty across the board.
Okay.
And then you talked a lot about consumer and Iot, but the infrastructure side. The <unk> build out globally have you seen the.
The pauses or push outs, there affecting you or perhaps are you in doing the build and the product cycles. So it's not as impactful to any color there would be helpful. Thanks.
Yeah, I think it's been it's been steady remember that when we say comps when you say Gee, we sometimes use debt loosely because it's not really high G is really more about communications, even though <unk> is a big portion of it.
So I would say that it's a pretty steady rollout it doesn't do anything which as you know.
Particularly spiky rollout yet.
But we do get everything else in the mid haul in the.
In the core.
And then the data centers so.
It's pretty evenly spread for all of us for all our products.
Okay. That's very helpful. Thanks for Jefferies. Thanks Art.
Sure great. Thanks Surjit.
And there are no further questions. So I will now turn the call back over to Mr. Art Chadwick for any closing remarks great.
Great. Thank you for that pretty much concludes our conference call today I want to thank everybody for joining us on this call. We appreciate all of your support and we hope you have a great day. Thanks again, everyone by now.
Thank you.
Okay.
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