Q2 2024 Astera Labs Inc Earnings Call

Audra: Good afternoon, my name is Audra, and I will be your conference operator today. At this time, I would like to welcome everyone to the Astera Labs Q2 2024 earnings conference call. All lines have been placed on mute to prevent any background noise.

Good afternoon, My name is Andre and I will be your conference operator today.

Speaker Change: I would like to welcome everyone to the Aspira Labs Q2, 2024 earnings conference call. All lines have been placed on mute to prevent any background noise.

Speaker Change: After management's remarks, there will be a question and answer session. If you would like to ask a question. During this time simply press star followed by the number one on your telephone keypad.

Speaker Change: If you would like to withdraw your question simply repress star one again, thank you.

Audra: After management's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, simply press star 1 again. Thank you. I will now turn the call over to Leslie Green, Investor Relations for Astera Labs. Leslie, you may begin.

Speaker Change: I will now turn the call over to Leslie Green Investor Relations for Aspira Labs, Leslie you may begin.

Leslie Green: Good afternoon, everyone, and welcome to the Astera Labs Second Quarter 2024 Earnings Conference Call. Joining us on the call today are Jitendra Mohan, Chief Executive Officer and Co-Founder, and Sanjay Gajendra, President and Chief Operating Officer and Co-Founder, and Mike Tate, Chief Financial Officer.

Leslie Green: Good afternoon, everyone and welcome to the a sterile lab second quarter 'twenty 'twenty four earnings conference call joining us on the call today are to tender Mohan Chief Executive Officer, and co founder and Sanjay Good Jindra, President and Chief operating officer, and cofounder and Mike <unk>, Chief Financial Officer before we get started.

Leslie Green: Before we get started, I would like to remind everyone that certain comments made in this call today may include forward-looking statements regarding, among other things, expected future financial results, strategies, and plans, future operations, and the markets in which we operate. These forward-looking statements reflect management's current beliefs, expectations, and assumptions about future events, which are inherently subject to risks and uncertainties that are discussed in detail in today's earnings release and the periodic reports and filings we file from time to time with the SEC, including the risks set forth in the final perspectives relating to our IPO.

Speaker Change: I would like to remind everyone that certain comments made in this call. Today may include forward looking statements regarding among other things expected future financial results strategies and plans future operations and the markets in which we operate these forward looking statements reflect management's current beliefs expectations and assumptions about <unk>.

Speaker Change: Sure events, which are inherently subject to risks and uncertainties that are discussed in detail in today's earnings release, and the periodic reports and filings that we filed from time to time with the SEC, including the risks set forth in the final prospectus relating to our I P. O. It is not possible for the company's management to predict all.

Leslie Green: It is not possible for the company's management to predict all risks and uncertainties that could have an impact on these forward-looking statements or the extent to which any factor or combination of factors may cause actual results to differ materially from those contained in any forward-looking statement. In light of these risks, uncertainties, and assumptions, the results, events, or circumstances reflected in the forward-looking statements discussed during this call may not occur, and actual results could differ materially from those anticipated or implied.

Speaker Change: All risks and uncertainties that could have an impact on these forward looking statements or the extent to which any factor or 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 results events or circumstances reflect.

Speaker Change: <unk> in the forward looking statements discussed during this call may not occur and actual results could differ materially from those anticipated or implied all of our statements are based on information available to management as of today and the company undertakes no obligation to update such statements. After the date of this call to conform.

Leslie Green: All of our statements are based on information available to management as of today, and the company undertakes no obligation to update such statements after the date of this call to conform to them as a result of new information, future events, or changes in our expectations, except as required by law. Also, during this call, we will refer to certain non-GAAP financial measures, which we consider to be an important measure of the company's performance.

Speaker Change: Through these as a result of new information future events or changes in our expectations, except as required by law.

Speaker Change: Also during this call we will refer to certain non-GAAP financial measures, which we considered to be an important measure of the company's performance. These non-GAAP financial measures are provided in addition to and not as a substitute for or superior to financial results prepared in accordance with U S. GAAP a discussion of why we use dawn.

Leslie Green: These non-GAAP financial measures are provided in addition to and not as a substitute for or superior to financial results prepared in accordance with U.S. GAAP. A discussion of why we use non-GAAP financial measures and reconciliations between our GAAP and non-GAAP financial measures is available in the earnings release we issued today, which can be accessed through the Investor Relations portion of our website and also be included in our filings with the SEC, which will also be accessible through the Investor Relations portion of our website. With that said, I would like to turn the call over to Jitendra Mohan, CEO of Hysteria Labs. Jitendra? Thank you, Leslie.

Speaker Change: GAAP financial measures and reconciliations between our GAAP and non-GAAP financial measures is available in the earnings release, we issued today, which can be accessed through the investor relations portion of our web site and also be included in our filings with the SEC, which will also be accessible through the investor relations portion of our website.

Speaker Change: With that I would like to turn the call over to Jay tender Mahan CEO the stair lap to tundra. Thank you Leslie and good afternoon, everyone and thank you for joining our second quarter conference call for fiscal 2024.

Jitendra Mohan: Leslie, good afternoon everyone, and thanks for joining our second quarter conference call for Fiscal 2024. AI continues to drive a strong investment cycle as entire industries look to expand their creative output and overall productivity. The velocity and dynamic nature of this investment in AI infrastructure is generating highly complex and diverse challenges for our customers. Astera Labs' intelligent and flexible connectivity solutions are developed from the ground up to navigate these fast-paced, complicated deployments. We are working closely with our hyperscaler customers to help them solve these challenges across diverse AI platform architectures that feature both third-party and internally developed accelerators.

Speaker Change: Yeah, I continues to drive a strong investment cycle and diet industries look to expand their creative output and overall productivity.

Speaker Change: The velocity and dynamic nature of this investment in our infrastructure is generating highly complex and diverse challenges for our customers.

Speaker Change: Instead of labs, intelligent and flexible connectivity solutions or develop ground up and navigate these fast paced complicated deployments.

Speaker Change: We're working closely with our hyperscale customers to help them solve these challenges across diverse platform architecture of the.

Speaker Change: The future both third party and internally developed accelerators.

Jitendra Mohan: In addition to these favorable secular trends, we're also benefiting from new company-specific product cycles across multiple technologies, which will also contribute to our growth in the form of higher average silicon content for our AI platform. A strong leadership position and great execution by our team resulted in record revenue for Astera Labs in the June quarter, supports our strong outlook for the third quarter, and gives us confidence in our ability to continue outperforming industry growth rates.

Speaker Change: In addition to being a favorite at both secular trends. We are also benefiting from new company specific product cycles across multiple technologies, which will also contribute to our growth in the form of higher average silicon content Party I platform.

Speaker Change: Our strong leadership position and great execution by our team resulted in record revenue, but I start to lapse in the June quarter.

Speaker Change: Reports, a strong outlook for the third quarter and gives us confidence in our ability to continue outperforming industry growth rates.

Jitendra Mohan: Astera Labs delivers strong Q2 results, setting our fourth consecutive record for quarterly revenue, strong non-gap operating margin, and positive operating cash flow. Our revenue in Q2 was $76.9 million, up 18% from the previous quarter, and up 619% from the same period in 2023. Non-GAAP operating margin was 24.4%, and we delivered 13 cents of non-GAAP diluted earnings per share. Operating cash flow generation was also strong during the quarter, coming in at $29.8 million.

Speaker Change: I thought I'll ask delivered strong Q2 results I think our fourth consecutive record for quarterly revenue.

Speaker Change: non-GAAP operating margin and positive operating cash flows.

Speaker Change: Revenue in Q2 was $76 $9 million up 18% from the previous quarter and up 619% from the same period in 2023.

Speaker Change: non-GAAP operating margin was 24, 4% and we delivered 13 cents of non-GAAP diluted earnings per share.

Speaker Change: Operating cash flow generation was also strong during the quarter coming in at $29 $8 million.

Jitendra Mohan: With continued business momentum and a broadening set of growth opportunities, we are investing in our customers by rapidly scaling the organization. During the quarter, we expanded our cloud scale interop lab to Taiwan and announced the opening of a new R&D center in India. We also announced the appointment of Bethany Mayer to our board of directors, bringing additional strategic leadership to the company.

Speaker Change: With continued business momentum and a broadening set of growth opportunities, we are investing in our customer spread rapidly scaling the organization.

Speaker Change: During the quarter, we expanded our cloud scale Interop lab in Taiwan and announced the opening of a new R&D Center in India.

Speaker Change: We also announced the appointment of Bethany Mayer to our board of directors, bringing additional strategic leadership to the company.

Jitendra Mohan: Today, Astera Labs is focused on three core technology standards: Fishexpress, Ethernet, and Computexpress Link. We are shipping three separate product families, supporting these different connectivity protocols, all generating revenue and in various stages of adoption. Let me touch upon our business with each of these product families and how we support them with our differentiated architecture and Cosmos software solutions. Then I will turn the call over to Sanjay to delve deeper into our growth strategy. Finally, Michael will provide additional details on our Q2 results and our Q3 financial guidance. First, let's talk about Pisa Express.

Speaker Change: Good day yesterday labs is focused on three core technology standards.

Speaker Change: <unk> Ethernet and compute expressly.

Speaker Change: We are shipping three separate product families supporting these different connectivity protocols.

Speaker Change: Forget anything revenue and in various stages of adoption.

Speaker Change: Let me touch upon our business with each of these product families and how we support them with our differentiated architecture and Cosmos software suite.

Speaker Change: Then I will turn the call over to Sanjay to dive deeper into our growth strategy.

Speaker Change: Finally, Mike will provide additional details on our Q2 results and our Q3 financial guidance.

Sanjay: First let's talk about PCI Express.

Jitendra Mohan: During the quarter, we saw continuous strong demand for our ARIES product family to drive reliable PCIe Gen5 connectivity in AI systems by delivering robust signal integrity and link stability. While merchant GPU suppliers drove early adoption of PCIe Gen 5 into OS systems over the past year, we are now also seeing our hyperscaler customers introduce and ramp new AI server programs based upon their internally developed accelerators utilizing PCIe Gen 5. Looking ahead, AI accelerator processing power is continuing to increase at an incredible pace.

Speaker Change: During the quarter, we saw continued strong demand for our <unk> product family to drive reliable Pcie Gen. Five connectivity in aerie systems by delivering a robust signal integrity and linked stability.

Speaker Change: While marketing Gpus suppliers drove early adoption of Pcie Gen five into a systems over the past year. We are now also seeing that hyperscale customers introduce and ramp new AI server programs based upon their internally developed accelerators utilizing pcie Gen five.

Speaker Change: Looking ahead, yeah accelerator processing power is continuing to increase at an incredible pace.

Jitendra Mohan: The next milestone for AI technology evolution is the commercialization of PCIe Gen 6, which doubles the connectivity bandwidth within AI servers, creating new challenges for link reach, reliability, and latency. Our 86 PCIe timer family helps to solve these challenges with the next generation of our software-defined architecture, offering a seamless upgrade path to our widely-deployed and field-tested Gen5 solution. We have started shipping initial quantities of pre-production orders of our PCIe Gen6 solution 86.

Speaker Change: The next milestone for the AI technology evolution in the car.

Speaker Change: Most utilization of Pcie Gen, six which doubles the connectivity and bandwidth within AI servers, creating new challenges for linked reach reliability and latency.

Speaker Change: 86, B say anytime with family has to solve these challenges with the next generation of our software defined architecture offering a seamless upgrade path to our widely deployed and field tested Gen five solutions.

Speaker Change: You started shipping initial quantities of preproduction orders off our pcie Gen six solution 86.

Jitendra Mohan: We ship and support our hyperscaler customers' initial program developments that are based on NVIDIA's Blackwell platform, including GB200. We look forward to supporting more significant production ramps in the quarters to come. Next, let's talk about Ethernet. Our portfolio of Torus Ethernet smart cable modules helps relieve connectivity bottlenecks by overcoming reach, signal integrity, and bandwidth issues by enabling robust 100 gigabit per lane connectivity over copper cables or AECs. Today, we are pleased to announce that our 400 gigabit Torus Ethernet SCMs have shifted into volume production with an expected ramp through the back half of 2024. This ramp is happening across multiple platforms in multiple cable configurations, and we are working with multiple cable partners to support the expected volume.

Speaker Change: These shipments support our Hyperscale customers initial program developments that are based on Nvidia Blackwell platform, including give me 200.

Speaker Change: We look forward to supporting more significant production ramps in the quarters to come.

Speaker Change: Next let's talk about Ethernet.

Speaker Change: Our portfolio of taught us Ethernet Mark gable modules has to leave connectivity bottlenecks by overcoming the beach signal integrity and bandwidth issues by enabling a robust 100 gig Berlin connectivity over copper cables or AUC.

Speaker Change: Today, we are pleased to announce that our 400 gig taught us Ethernet at CMS have shifted into volume production with an expected ramp through the back half of 'twenty 'twenty four.

Speaker Change: This ramp is happening across multiple platforms and multiple cable configurations, and we are working with multiple cable partners to support the expected volumes.

Jitendra Mohan: TORUS will be ramping across a multitude of 400 gigabit applications to scale out connectivity on both AI compute platforms, as well as general purpose compute. We are excited about the breadth and diversity of our Torus design wins and expect the product family to be accretive to our corporate growth rate going forward. Next is Compute Express Link, or CXL. We continue to work closely with our hyperscaler customers on a variety of use cases and applications for CXL.

Speaker Change: So all that's going to be ramping across a multitude of 400 gig applications to scale out connectivity on both AI compute platforms has been a general purpose compute systems.

Speaker Change: We're excited about the breadth and diversity of Portola, the design wins and expect a product family to be accretive to our corporate growth rate going forward.

Speaker Change: Next is computer express link our fee etc.

Speaker Change: We continue to work closely with our Hyperscale customers and a variety of use cases and applications for EXL.

Jitendra Mohan: In Q2, we shipped material volumes of our Leo products for pre-production, rack-scale deployment in data centers. We expect to see data center platform architects utilize CXL technology to solve memory bandwidth and capacity bottlenecks using our Leo family of products. The initial deployments are targeting memory expansion use cases with production ramps starting in 2025 when new CXL-capable CPUs are broadly available. Finally, I would like to spend a moment on Cosmos, which is a software platform that brings all of our product families together.

Speaker Change: In Q2, we shipped material volume of our newer products for pre production that scale deployment in data centers, we expect to see data center platform architect utilize <unk> technology to solve memory bandwidth and capacity bottlenecks using our <unk> family of products.

Speaker Change: The initial deployments are targeting memory expansion use cases with production starting in 2025 when used vehicle capable Cpus are broadly available.

Speaker Change: Finally, I would like to spend a moment on Cosmos, which is a software platform that brings all of our product families together.

Jitendra Mohan: We discussed how Cosmos not only runs on our chips but also on our customers' operating stacks to deliver seamless customization, optimization, and monitoring. The combination of our semiconductor and hardware solutions with Cosmos software enables our product to become the eyes and ears of connectivity infrastructure, helping fleet managers to ensure their AI and cloud infrastructure is operating at peak utilization. By improving the efficiency of their data centers, our customers are able to generate higher ROI and reduce downtime.

Speaker Change: We have discussed how cosmos not only runs on our ships, but also in our customers operating stats to deliver a seamless customization optimization and monitoring.

Speaker Change: The combination of our semiconductor and hardware solution with Cosmo software enables our product to become the eyes and ears of connectivity infrastructure had been fleet managers to ensure the AI and cloud infrastructure is operating at peak utilization.

Speaker Change: By improving the efficiency of their data centers, our customers are able to generate higher ROI and reduce downtime.

Jitendra Mohan: To summarize, secular trends in AI adoption, design wins across diverse AI platforms at hyperscalers, featuring both third-party and internally developed accelerators, and increasing average dollar content in next generation GPU-based AI platforms give us confidence in our ability to outperform industry growth. With that, let me turn the call over to our President and COO, Sanjay Gajendra, to discuss some of our recent product announcements and our long-term growth strategy.

Speaker Change: To summarize.

Speaker Change: And secular trends in AI adoption design wins across diverse AI platforms at Hyperscale US featuring both third party and internally developed accelerators and increasing average dollar content in next generation GPU based air platforms.

Speaker Change: This confidence in our ability to outperform industry growth rates.

Speaker Change: With that let me turn the call over to our President and C O San Diego agenda to discuss some of our recent product announcements and our long term growth strategy.

Sanjay Gajendra: Thanks, Jitendra, and good afternoon, everyone. We're pleased with our robust Q2 results and strong top line outlook for Q3, but we're even more excited about the volume and breadth of opportunities that lie ahead. Today, I will focus on five growth vectors that we believe will help us to grow our business faster than industry growth rates over the long term. First, Estera Labs is in a unique position with design wins across diverse AI platform architectures featuring both third-party and internally developed accelerators. This diversity gives us multiple paths to grow our business.

Speaker Change: Thanks, Keith and good afternoon, everyone.

Speaker Change: We are pleased with our robust Q2 results and strong top line outlook for Q3.

Speaker Change: But we're even more excited about the volume and breadth of opportunities that lay ahead.

Speaker Change: Today I will focus on five growth vectors that we believe will help us to grow our business faster than industry growth rates for the long term.

Speaker Change: First as total apps is in a unique position with design wins across diverse AI platform architectures, featuring both third party and internally develop accelerators.

Speaker Change: This diversity gives us multiple paths to grow our business. This hybrid approach of using third party and internally develop accelerators allows hyperscale is to optimize the fleet to support unique workload requirements and infrastructure limitations, while also improving.

Sanjay Gajendra: This hybrid approach of using third-party and internally developed accelerators allows hyperscalers to optimize their fleet to support unique workload requirements and infrastructure limitations, while also improving capital investment efficiency. Our intelligent connectivity platform, with its flexible software-based architecture, enables portability and seamless reuse between platforms while creating growth opportunities for all our product families. In addition to the third-party GPU platforms, we also expect to see several large deployments based on internally developed AI accelerators hitting production volumes over the next few quarters and driving incremental PCIe and Ethernet volumes for us. Second, we see increasing content on next-generation AI platforms.

Speaker Change: Capital investment efficiency.

Speaker Change: Our intelligent connectivity platform with its flexible software based architecture enables portability and seamless reuse between platforms, while creating growth opportunities for all our product families.

Speaker Change: In addition to the third party GPU platforms. We also expect to see some good large deployments based on internally developed AI accelerators, hitting production volume or the next few quarters and driving incremental pcie and Ethernet volumes for us.

Speaker Change: Second we see increasing content on next generation AI platforms.

Sanjay Gajendra: NVIDIA's Blackwell GPU architecture is particularly exciting for us, as we expect to see strong growth opportunities based on our design wins as hyperscalers compose solutions based on Blackwell GPUs, including GB200, across their data center infrastructure. To support various AI workloads, infrastructure challenges, software, power, and cooling requirements, we expect multiple deployment variants for this new GPU platform. For example, NVIDIA cited 100 different configurations for Blackwell in its most recent earnings call.

Speaker Change: <unk> Black Jewel GPU architecture is particularly exciting for us as we expect to see strong growth opportunities based on our design wins as Hyperscale is composed solutions based on Blackberry Gpus, including GBP 200 across their data center infrastructure.

Speaker Change: To support various AI workloads infrastructure challenges software power and cooling requirements, we expect multiple deployment variance for this new GPU platform.

Speaker Change: For example, Nvidia cited 100 different configurations for black Jewel in their most recent earnings call. This growing trend of complexity and diversity presents an exciting opportunity for us to their labs as a flexible silicon architecture and cost more software suite.

Sanjay Gajendra: This growing trend of complexity and diversity presents an exciting opportunity for Astera Labs as our flexible silicon architecture and Cosmos software suite can be harnessed to customize the connectivity backbone for a diverse set of deployment scenarios. Overall, we expect our business to benefit from the Blackpool introduction with higher average dollar content of our products per GPU driven by a combination of increasing volumes and higher ASPs. The next growth vector is the broadening of applications and use cases for our Aries product family.

Speaker Change: Can be harnessed to customize the connectivity backbone for a diverse set of deployment scenarios overall.

Speaker Change: Overall, we expect our business to benefit from the Blackstone introduction with higher average dollar content all four products per GPU, driven by a combination of increasing volumes and higher asp's.

Speaker Change: The next growth vector is the broadening applications and use cases for our <unk> product family.

Sanjay Gajendra: ARIES is in its third generation now and represents the gold standard for PCIe retimers in the industry. The introduction of the new 86 re-timers built upon the company's widely deployed and battle-tested PCIe5 re-timers and the industry transition to PCIe Gen 6 will be a catalyst for increasing PCIe re-timer content for Astera. Our learnings from hundreds of design wins and production deployment over the last several years enable us to quickly deploy PCIe Gen 6 technology at scale. As Jitendra noted, we are now shipping initial quantities of pre-production volume for 86 and currently have meaningful backlog in place to support the initial deployment of hyperscaler AI servers featuring NVIDIA's Blackwell GPUs, including GB200.

Speaker Change: It is the incentives third generation now and represents the gold standard for Pcie lead time list in the industry the introduction.

Speaker Change: Of the new 86, three time was built upon the companies widely deployed and battle tested Pcie fight the timeless and the industry transition to Pcie Gen. Six will be a catalyst for increasing pcie lead time of content for us.

Speaker Change: Our learnings from hundreds of design wins and production deployment or the last several years enables us to quickly deploy pcie Gen. Six technology at scale as to tender noted we are now shipping initial quantities of pre production volume for 86 and currently have.

Speaker Change: Meaningful backlog in place to support the initial deployment of Hyperscale AI servers, featuring Nvidia is blackwill Gpus, including GBP 200.

Speaker Change: We're also very excited about the incremental pcie connectivity market expansion that will be driven by multi rack GPU clustering.

Speaker Change: Similar to the dynamic within the Ethernet ASC business the reached limitations of passive pcie copper cables are a bottleneck for.

Speaker Change: With a number of gpus that can be clustered together.

Speaker Change: Our purpose built <unk> smart cable modems. So all these issues by providing robust signal integrity and linked stability or materially longer distances, improving rack airflow, while actively monitoring and optimizing link hook.

Speaker Change: This pcie AUC opportunity is in the early stages of adoption and deployment and we view the multi rag GPU clustering application at the new and growing market opportunity for our <unk> product family.

Speaker Change: In June we announced the industry's first demonstration of end to end pcie optical connectivity to provide unprecedented reach for larger GPU clusters, we are proud to broaden our pcie leadership once again by demonstrating robust.

Sanjay Gajendra: This breakthrough expands our intelligent connectivity platform to allow customers to seamlessly scale and extend high-bandwidth, low-latency PCI interconnects over options. Overall, we expect our Ares PCIe retimer business to deliver strong growth as system complexity, platform diversity, and speeds continue to increase, and on average, result in higher retimer content per GPU in next-generation AI platforms. Next, in addition to the strong growth prospects of our ARIES product family across the PCIe ecosystem, we're also seeing our TORUS product family for Ethernet AEC applications start to meaningfully contribute to growth in the back half of 2024.

Sanjay Gajendra: What is exciting about these ramps is the diversity in applications and use cases. We are seeing demand for our TORUS product family for both AI and general compute platforms. We are supporting the market with multiple cable configurations, including straight, Y cables, and X cables. We will be shipping volume into hyperscaler buildouts, supporting multiple cable vendors to enable a diverse supply chain that is crucial for hyperscalers. Overall, we remain very excited about the potential of CXL in data center applications.

Speaker Change: What is exciting about this France is the diversity in applications and use cases.

Speaker Change: We're seeing demand for our Polish product family for both AI and general compute platforms. We are supporting the market with multiple cable configurations, including straight why cables and ex cables, we will be shipping volume into hyper scaler Buildout supporting <unk>.

Speaker Change: Multiple cable vendors to enable a diverse supply chain that is crucial for hyperscale as well.

Speaker Change: Overall, we are very excited about <unk>, becoming yet another engine of growth as we look to expand the top line, while also diversifying our product family contributions.

Speaker Change: Last but not least.

Speaker Change: <unk> is an important technology to solve memory bandwidth and capacity bottlenecks in compute platforms. We are working closely with our Hyperscale partners to demonstrate various use cases for this technology and starting to deploy our <unk> controllers in preproduction.

Speaker Change: <unk> racks and data centers, we have incorporated the learnings customization and security requirement into our cost more software and have the most robust cloud ready CSL solution in the industry, we have demonstrated that our <unk> XL smart memory controllers.

Sanjay Gajendra: Finally, our close collaboration and front row seat with hyperscalers and AI platform providers continues to yield valuable insights regarding the direction of compute technologies and the connectivity topologies that will be required to support them. This close collaboration is helping us identify new product and business opportunities and additional engagement models across our entire intelligent connectivity platform, which we believe will drive strong, long-term growth for Astera.

Michael Tate: Thanks, Sanjay, and thanks to everyone for joining the call. This overview of our Q2 financial results and Q3 guidance will be on a non-GAAP basis. The primary difference in Astera Labs' non-GAAP metrics is stock-based compensation and its related income tax effects. We recognize revenue across all three of our product families during the quarter, with the Ares product being the largest contributor, benefiting from continued momentum and its AI-based platform. In Q2, Taurus revenues continued to primarily ship into 200-gigabit Ethernet-based systems, and we expect Taurus revenues to now diversify further as we begin to ship volume into 400-gigabit Ethernet-based systems in the third quarter. Q2 LEO revenues were largely from customers purchasing pre-production volumes for the development of their next-generation CXL-capable compute platform with our customer's production launch. Interest income in Q2 was $10.3 million.

Speaker Change: 2024, <unk> labs delivered record quarterly revenue of $76 $9 million.

Speaker Change: Which was up 18% from the previous quarter and 619% higher than the revenue in Q2 of 2023.

Speaker Change: During the quarter, we shipped products to all major Hyperscale and AI accelerator manufacturers.

Speaker Change: We recognize revenue across all three of our product families. During the quarter with the Aries product being the largest contributor that is being from continued momentum in AI based platforms.

Speaker Change: In Q2 tourist revenues contributed to continued to primarily shipped into 200 gig Ethernet based systems and we expect <unk> revenue to now diversify further as we begin to ship volume into 400 gig Ethernet based systems in the third quarter.

Speaker Change: Q2, <unk> revenues were largely from customers purchasing preproduction volumes for the development of their next generation <unk> capable compute platforms.

Speaker Change: With our customers' production launch.

Speaker Change: Timing being dependent on the datacenter server CPU refresh cycle.

Speaker Change: Q2, non-GAAP gross margins was 78% and was down 20 basis points compared to 78, 2% in Q1 of 2024 and better than our guidance of 77%.

Michael Tate: Cash flow from operating activities for Q2 was $29.8 million, and we ended the quarter with cash, cash equivalents, and marketable securities of just over $830 million, up roughly 24% to 30% sequentially from the prior quarter. We believe our Ares product family will continue to be the largest component of revenue and will be the primary driver of sequential growth in Q3, driven by growing volume deployment with our customers' AI servers. We also expect our Taurus family to drive solid growth quarter over quarter as design wins within new 400 gigabit Ethernet based systems rampant to volume production.

Speaker Change: To ramp into volume production.

Michael Tate: We expect non-gap growth margins to be approximately 75%. The sequential decline in gross margin is being driven by an expected product mix shift toward hardware solutions during the quarter. We expect non-GAAP operating expenses to be in a range of approximately $46 million to $47 million as we remain aggressive in expanding our R&D resource pool across headcount and intellectual property. Interest income is expected to be approximately $10 million. Our non-GAAP tax rate should be approximately 20%.

Speaker Change: We expect non-GAAP gross margins to be approximately 75%.

Speaker Change: Sequential decline in gross margin is being driven by an expected product mix shift towards hardware solutions during the quarter.

Speaker Change: We expect non-GAAP operating expenses to be in the range of approximately 46 million to $47 million as we remain aggressive in expanding our R&D resource pool across head count and intellectual property.

Speaker Change: Interest income is expected to be approximately $10 million.

Speaker Change: Our non-GAAP tax rate should be approximately 20%.

Speaker Change: And our non-GAAP fully diluted share count is expected to be approximately 177 million shares.

Speaker Change: Adding this all up we are expecting non-GAAP fully diluted earnings per share of a range of approximately 16.

Speaker Change: To 17.

Michael Tate: And our non-GAAP fully diluted share count is expected to be approximately 177 million shares. Adding this all up, we are expecting non-GAAP fully diluted earnings per share in a range of approximately 16 cents to 17 cents. This concludes our prepared remarks, and once again, we are very much appreciative of everyone joining the call, and now we will open the line for questions. Operator?

Speaker Change: This concludes our prepared remarks and once again, we are very much appreciative of everyone. Joining the call and now we will open the line for questions operator.

Audra: Thank you. At this time, I would like to remind everyone that in order to ask a question, press star, then number one on your telephone keypad. We'll take our first question from Harlan Sur at J.P. Morgan.

Speaker Change: Thank you at this time I would like to remind everyone in order to ask a question Press Star then the number one on your telephone keypad.

Harlan Sur: We'll take our first question from Harlan sur at Jpmorgan.

Harlan Sur: Good afternoon. Thanks for taking my question and congratulations on the strong results. You know, during the quarter, lots of concerns around your large GPU customer and one of their next generation GPU SKUs, the GB200. Glad that the team could clarify that your dollar content across all Blackwell GPU SKUs is actually rising versus prior generation hoppers. But as you guys mentioned, the AI ASIC accelerator mix is rapidly rising. And actually, we believe it will outgrow GPUs both this year and next year and account for like 50% of the XPU mix sort of next year, right?

Harlan Sur: Good afternoon. Thanks for taking my question and congratulations on the strong results.

Harlan Sur: And with ASICs, it's 100% PCIe based. And as you pointed out, right, many of these ASIC customers are still in the early stages of the ramp. So given all of this, given some of the new product ramps with your AEC solutions, you know, what's the team's visibility and confidence level on driving continued quarter-on-quarter growth from here, maybe over the next several quarters?

Jitendra Mohan: Harlan, thank you so much for the question. It's great to be in the place that we are today.

Jitendra Mohan: We feel very confident about what is to come. Clearly, we don't guide more than one quarter out, so please don't take this as any guidance. But we really believe that we are in the early innings of AI here. All of the hyperscalers are increasing their CAPEX targets for the rest of the year. 2025 is expected to be even higher. We heard that the Lama model required 10 times more computing power in order to solve that.

Jitendra Mohan: So all of these trends are basically driving a radical shift in technology. We are seeing, as you correctly pointed out, a lot of our hyperscaler customers ramp up their internally developed AI accelerators in addition to deploying third-party AI accelerators. And we are very pleased that we have designed ways across all of these different platforms. Our customers are ramping up their platforms, and we are ramping up multiple product families. As Sanjay mentioned, both Ares and Taurus are ramping up to these new platforms. So we feel very good about what is in store for the future and feel that with the rising content on a per-GPU basis, we'll be able to outpace market growth in the long term.

Jitendra Mohan: Oh, I appreciate that, and on top of the strong AI demand trend pulls, on top of the new product ramps that you guys articulated today, you know, one thing I haven't baked into my model is the penetration of your retimer technology into general purpose servers, right? And the good news is that we're finally starting to see flash vendors aggressively bringing Gen 5 PCIe SSDs to the market, which could potentially unlock retimer opportunities in general purpose servers, where the Gen 5 retimer content today is still zero.

Speaker Change: Strong AI demand trend pulls on top of the.

Speaker Change: New product ramps that you guys articulated today.

Speaker Change: One thing I haven't baked in to my model the penetration of your re timer technology into general purpose or was right and the good news is.

Speaker Change: We're finally, starting to see the flash vendors aggressively, bringing finally, bringing gen. Five pcie ssds, the market, which could potentially unlocks a retirement opportunities in general purpose servers, where the gen. Five re timer content today is still zero. So what's the team's outlook do you see that.

Jitendra Mohan: So what's the team's outlook? Do you see that there may be some penetration starting in 2025 of your retimer solution into general purpose servers, and maybe if you could size that potential opportunity for us? Absolutely. Harlan, Sanjay here. Good to hear your voice.

Speaker Change: There may be some.

Speaker Change: Some penetration starting in 2025 of your retirement solutions into general purpose server and maybe if you could size that potential opportunity for us.

Sanjay: Yeah, absolutely Harlan Sanjay here good to hear your voice yeah. So in general that's a that's a correct.

Sanjay Gajendra: Sanjay here. Good to hear your voice. Yeah, so in general, that's a correct statement. We have several design wins on the compute side. Just for reasons like you highlighted, either SSDs not being Gen5 ready or for dollars being sort of sucked away into the AI platforms, there has been slower than expected growth in general compute. But at some point, like we keep saying, the servers are going to fall off the rack at some point, given how long they've been in the fleet.

Speaker Change: It meant we have several design wins on the compute side or just for reasons like you highlighted either SSD is not being gen, five ready or $4 being sort of sucked away into the AI platforms.

Speaker Change: There has been a slower than expected growth on the general compute but at some point like we keep saying that surplus are going to fall off the rack.

Sanjay Gajendra: So we do expect the general compute to start picking up, especially as both AMD and Intel get to production with their Turin and the Planet Rapids-based CPUs. So overall, by 2025, we do expect that the compute platform will start figuring in terms of meaningful revenue growth. Like I noted, we do have design wins already in these platforms for ADS-3 timers. But also, I would like to add that we do have design wins for our Taurus Ethernet module application as well in general compute.

Sanjay Gajendra: So we should see sort of the two-engine growth story along with the general compute to go along with all of the things we shared on AI, both for third-party or merchant GPUs, as well as the big change that we're seeing now is the ramp in internally developed accelerators, those things being a meaningful and a significant driver for our growth. Thank you. We'll move next to Joe Moore at Morgan. Great, thank you.

Joe Moore: We'll move next to Joe Moore at Morgan Stanley. Great, thank you. I wonder if you could talk about the

Unknown Executive: Absolutely. Let me take that, Joe.

Unknown Executive: So overall, this is a big and growing market. I think that that fact is clear. I mean, the fact that you have larger names jumping into the mix sort of validates the market that the ReTimer represents.

Unknown Executive: Now, a couple of points to keep in mind are that connectivity products, especially PCI Express, tend to have a certain nuance to them, which is the fact that we are the device in the middle. We're always in between GPUs, storage, networking, and so on. And interoperation, especially at high volume, cloud-scale deployments, becomes critical. So what we have done in the last three, four years is really work shoulder to shoulder with our hyperscaler and AI platform providers to ensure that interoperation is met.

Unknown Executive: The platform level deployment, whether it is diagnostic, telemetry, and firmware management, is all addressed, including the Cosmos software that we provide from a management, fleet management, and diagnostic type of capability. Those have all been integrated into our customers' operating stacks. So in general, the picture I'm trying to paint here is that the tribal knowledge that we have built, the penetration that we have, not just with these silicon, but also with software, does give us a significant advantage compared to our competitors. So overall, we feel good about the position that we are in, both in terms of Gen 5, as well as transitioning those design ends to Gen 6 as the platforms develop and grow.

Speaker Change: Are those all have been integrated into our customers' operating stacks. So in general the picture I'm trying to paint here is that the tribal knowledge that we have built the penetration that we have not just with the silicon, but also software does give us a significant advantage compared to our.

Speaker Change: Now having said that we will continue to work hard we have several design wins for Pcie Gen. Six like we shared in todays call that are all designed around the next generation.

Speaker Change: <unk> platform, specifically, specifically the Blackfoot based Gpus from from Nvidia, which have publicly noted to support Gen. Six so we'll continue to work through them and we are currently shipping preproduction volume to support some of the initial ramps, including for GBP 200 based platforms.

Speaker Change: So overall, we feel good about the.

Speaker Change: The let the position that we're in both in terms of Gen five as well as transitioning those design.

Speaker Change: Into Gen six as the platforms.

Speaker Change: Develop and grow.

Speaker Change: Great. Thank you.

Speaker Change: We'll move next to Blayne Curtis at Jefferies LLC.

Blayne Curtis: Hey, Thanks for taking my question I just wanted to ask you.

Unknown Executive: Yeah, Blayne. The margins will come down to the extent that we show more hardware versus silicon. So TORUS is definitely one of those drivers. Also, we do modules on the ARIES side, and we're seeing growth in both of those. So when you look at the growth guidance we're giving for the third quarter, you know, you have the contribution from TORUS, you have the incremental modules on ARIES, but also we're seeing a lot of growth just from ARIES Gen 5 going into AI servers and a lot of new platforms, and the platforms generally are getting more content per platform. So when you look at the growth, I think it's kind of balanced between those three, those three

Unknown Executive: Great, thank you. And if I could squeeze one last question in,

Speaker Change: A different customers use different architectures to craft their systems. If you look at Nvidia based systems. They do use NV link which is of course, a proprietary closed interface. The rest of the world largely uses protocols that are either PCI Express our Ethernet, albeit based on PCI Express and Ethernet and the choice of particular protocol as the.

Speaker Change: Really dependent upon the infrastructure that the hyperscale is half and how they choose to deploy this technology clearly we play in both our daughters are Ethernet Smart cable module support Ethernet and now with our <unk> Smart cable modules, you are able to support our PCI express as well.

Speaker Change: We think about the evolution, we started with Aries the timeless for driving mostly within the box connectivity and shorter distance connectivity over passive cables as you said networking Arctic architectures evolve and you needed to cluster more Gpus together, we went with the 80 smart cable modules that allow you to connect multiple racks together up to <unk>.

Speaker Change: Metres of copper cables and as it expands into even further distances. We go into optical where we demonstrated running a very popular GPU over 15 meters of optical fiber.

Speaker Change: So these are all of the tools that we are making available to our Hyperscale partners.

Two for them to cross their solutions and deploy AI at the datacenter scale.

Speaker Change: Helpful. As a follow up I know this is a bit of a tougher question, but I do think that theres a lot of confusion out there and just would appreciate your thoughts you mentioned in the prepared remarks.

Speaker Change: Hey guys, thanks for taking my question. I guess maybe a follow-up just on the Blackwell question. Looks like there have been some...

Jitendra Mohan: Jitendra Mohan, Unknown Executive

Speaker Change: and perhaps a de-emphasis in the HGX platforms. Just wondering if you see any shifts in content, if that's favorable, if it's about a wash going from one platform to the other, and then I've got a follow-up.

Speaker Change: Thank you, Quinn. Unfortunately, it would not be appropriate for us to comment on rumors and third-party information that seems to be circulating around. What we will say is that we are committed to whatever platform our customers want to deploy.

Speaker Change: Whether it's a full rack or it's an SGX server or something in between, we are working with them very, very closely.

Speaker Change: shoulder-to-shoulder every day. As Sanjay mentioned,

Sanjay: We already have multiple design wins in the Blackwell family, including the GB200. We are shipping initial quantities of pre-production to the early adopters, and we do have a backlog in place that serves the Blackwell platform, including GB200.

Speaker Change: Got it. Okay. Thank you for that and just maybe a clarification on on the TORUS 400 gig ramp as well as the ARIES SDM

Speaker Change: ramps. Are those ramping across multiple hyperscalers or are they driven by a lead hyperscaler initially and then you would expect a broadening out to other hyperscalers as we move into 2025?

Speaker Change: Yeah, good question. Let me take that. So if you think about AECs, in general, 800 gig, you know, where you're running 100 gig per lane is the first broad use case that we believe for AEC applications.

Speaker Change: If you look at data rates lower than that, let's say 400 gig and so on, it tends to be very frankly case by case, depends on the topology, application and so on.

Speaker Change: So the good thing about the design wins we have is that these scale across multiple platforms both from an AI and general compute standpoint and supporting various different topologies.

Speaker Change: And the revenue drivers that we are essentially highlighting for 3Q and beyond is based on supporting these applications. With 800 gig, it becomes much more broader with several different customers essentially requiring AACs.

Speaker Change: And is it similar for the ARIES SCMs for back-end clustering as well?

Speaker Change: Exactly. It depends on the topology for what it is in terms of how the back-end networks are designed for the AI subsystems.

Speaker Change: In general, all of this, when it comes to active cabling type of technology, it becomes case by case depending on the infrastructure.

Speaker Change: and how exactly systems are being put together compared to a component like a PCIe timer that goes across a broad array of use cases across multiple different deployment scenarios. So that's a nuance to keep in mind when you look at AEC markets.

Speaker Change: Got it. Thank you.

Speaker Change: Yeah, but still the volume and the deployment scale tends to be very broad, right, if you're looking at how.

Speaker Change: infrastructures are being put together.

Speaker Change: It is one of those things where you look at case by case, but as long as you're able to address a wide variety of applications, it does very significantly add up.

Speaker Change: We'll take our next question from Ross Seymour at Deutsche Bank.

Ross Seymour: Hi guys, thanks for asking the question. Apologies to go back to one that's been hit on a couple times, so I want to do it nonetheless and kind of the Blackwell topic and the content topic. You guys gave us the punchline that you believe your content on average will go up.

Speaker Change: per GPU generation to generation. It also seems like you're getting across that the customization of it is still very broad based. And so just looking at the vanilla system SKUs and reference design NVIDIA itself has might be misleading.

Speaker Change: Two-part question to this. Are you of the belief that your content is equal across the board in the same way it was in Hopper, or do things get more skewed, where there'll be places where you'll have a significant step up in content in some configurations, and others where you'd have a significant step down, and the difference between those two might be where investors are getting a little bit confused?

Speaker Change: Let me try to add a little bit more color on that. But before I do that, let me give you and remind two data points we've already covered in the Q&A so far.

Speaker Change: First point, let's be very clear that our PCIe retimer content per GPU on average will continue to grow as the AI systems

Ross Seymour: scales across various different topologies. And this applies to both third-party, like standard merchant GPUs, as well as internally developed GPUs.

Unknown Executive: The second reminder that I want to kind of note is that specifically for Blackwell, we expect our PCIe content per GPU to go up. Now, what you're asking is specifically about the deployment scenarios, which are evolving right now.

Ross Seymour: The second reminder that I want to kind of note is that specifically for Blackwell, we expect our PCIe content per GPU to go up.

Ross Seymour: Now, what you're asking is specifically about the

Unknown Executive: So we have design wins for several different topologies, including the GB200. But if you look at the various different options that NVIDIA is offering and how those are being composed and considered by the hyperscalers, that situation is evolving at the moment. The key message that we want to deliver is that overall, our PCIe content is going to be higher than the Hopper generation. We expect that the design wins that we're starting to see, and we're starting to ship from a production, pre-production standpoint are all meaningful. That will essentially allow us to continue to have a robust growth engine as far as our PCIe retimer business is concerned.

Ross Seymour: The Deployment Scenarios

Ross Seymour: which right now is evolving.

Speaker Change: Right, so we have design wins.

Ross Seymour: for several different topologies, including the GB200. But if you look at the various different options that NVIDIA is offering and how those are being composed.

Ross Seymour: and considered by the hyperscalers, that situation is evolving at the moment.

Ross Seymour: The key message that we want to deliver is that overall our PCIe content is going to be higher than the Hopper generation.

Ross Seymour: We expect that the design wins that we're starting to see and we're starting to ship from a production, pre-production standpoint are all meaningful, that will essentially allow us to continue to have a robust growth engine as far as our PCI retirement business is concerned.

Speaker Change: Thanks for that. I guess as a follow up, you guys have focused more on this call about the internally developed accelerator than you have in calls in the past, and I realize there haven't been too many since your IPO.

Speaker Change: But are you trying to get across the key message that those are really growing as a percentage of your mix, that those are penetrating the market and, you know, kind of catching up and taking relative share from the GPU side of things? Or is your commentary meant to get across that Astera itself with its re-timers and other components?

Speaker Change: will take significant share in that kind of ASIC market relative to the GPU side.

Speaker Change: Yeah, it's probably both, to be honest with you.

Speaker Change: In the sense that we do see it, it's no secret, right? I think many of the hyperscalers are doing their own accelerators, which are driven by the workloads or the business models that they pursue.

Speaker Change: I think that.

Speaker Change: will continue as a macro trend in terms of internally developed accelerators going hand-in-hand with GPUs that are available from NVIDIA or AMD or others. So that's the model that we believe will be here to stay, that high-grid approach.

Speaker Change: And for us, really, the reason we are highlighting is that, of course, you know, we have had a significant business that has grown in the last year or two years from the designs that we have been supporting with the merchant GPU deployments that have happened.

Speaker Change: But at the same time, now we're reaching a point where the accelerator volumes are also starting to ramp up.

Speaker Change: And for us, the good news is that we are on all the major AI accelerator platforms from a design wind standpoint, or at least all the major ones that are out there.

Speaker Change: And for us, we have multiple paths to grow our business. And that is a very positive thing that we believe will continue to allow.

Speaker Change: As to keep delivering the kind of results that we're doing and as new CPU GPU architectures come about just

Speaker Change: just like the NVIDIA's Blackwell platform, we do expect to gain from it both on the retimer content as well as other products that we can service to the space.

Speaker Change: Thank you.

Speaker Change: We'll take our next question from Richard Shannon at Cray-Callum Capital Group.

Richard Shannon: Well, hi guys, thanks for taking my question.

Richard Shannon: Maybe a question on PISAxpress Gen 6 here. Last call you talked about some of the WINS designs being decided in the next six to nine months or obviously three to six months.

Speaker Change: three more months farther forward here. Obviously, you've got some wins already on Gen 6, but I just want to get a sense of the share of the market looking backwards. How much of that market has been decided versus up for grabs? Even help characterize what's left here to win in the next three to six months.

Speaker Change: I'm trying to see how best to answer that question. So you got to, let me try to provide some color.

Speaker Change: The design when Windows is.

Speaker Change: Whatever, for this platform, it's...

Speaker Change: You're looking at, once GPUs become available, you're looking at, you know, 6 to 12 months before they go to production.

Speaker Change: So that's one thing to keep in mind. But also, please also think about how hyperscalers go about doing their stuff, right? Everyone is...

Speaker Change: is in an arms race right now, getting to production as quickly as possible. In many different situations, you know, resources are also limited, meaning for every 10 engineers that they may need, they might have two or three, just given the number of platforms and how quickly everyone is trying to move.

Speaker Change: And to that standpoint, what is happening is that many of these engineers are familiar with our Gen 5 retimers.

Speaker Change: designed it across multiple platforms, they built software tools and capabilities around it.

Speaker Change: And now our Gen 6 re-timers are essentially a seamless upgrade from a software standpoint, from a hardware standpoint.

Speaker Change: So it does offer a lowest risk and fastest path to our customers.

Speaker Change: And that plays well within their own objectives of trying to get something out quickly and dealing with resources that might not be available at the levels that are required. So overall, we are starting to gain from it and we are essentially, you know, being the

Speaker Change: Being the leader in the space, being the one that is getting the first crack at these opportunities, and we are doing everything we can to convert those things into design wins and revenue.

Unknown Executive: Okay, great. My follow-on question is a pretty simple one. Just looking at the TORUS line here, great to see the ramp here at 400 gigabits, and I don't want to get too far ahead of what looks to be a pretty nice ramp here in the second half of the year, but I think you've talked about the 800 gigabit generation ramping later in 2025. Any update on that timing, and how are your design ones looking so far?

Speaker Change: Okay, great. My follow-on question is a pretty simple one. Just looking at the Taurus line here, great to see the ramp here at 400 gig, and I don't want to

Jitendra Mohan: Jitendra Mohan, Unknown Executive

Speaker Change: Good question. So the 800 gig timing we believe is going to be late in 2025. Right now what we are seeing is

Jitendra Mohan: 400 gig applications for some of the AI systems as well as actually we are seeing them for general purpose compute as well where you are doing the traditional server to top of the rack connection.

Jitendra Mohan: So that will continue on for the rest of this year for 400 deployments.

Jitendra Mohan: And then as we get some of the newer NICs that are capable of 100 gig and 200 gig per lane, et cetera, try to get to 800 gig, is where we see broadening of this market and more deployments across different hyperscalers, across different platforms in the later half of 2025.

Speaker Change: Okay, great. Thanks, guys.

Speaker Change: We'll go next to Suji DeSilva at Roth Capital.

Suji DeSilva: Hi Jitendra, Sandra, and Mike, congrats on the progress here. This question may not have been asked explicitly, but

Unknown Executive: Can you give us a relative content framework for internally developed versus third-party processors and accelerators? Is it higher for internally developed on average, or is it hard to generalize?

Suji DeSilva: Can you give us a relative content framework for internally developed versus third-party processors, accelerators, is it higher for internally developed on average or is it hard to generalize like that?

Speaker Change: I would say it's a little bit hard to generalize. It varies quite a bit. Even one particular platform, you can have different form factors. Even if you look at, let's say, Blackwell.

Speaker Change: You have ATX, you have MTX, you have NVLs, you have custom racks that are getting deployed.

Jitendra Mohan: And if you look at each one of them, you will find different amount of content. The number of retimers will vary, where they get placed will vary, but what is very consistent is that the overall content does go up for us. Now, the other factor to consider is the choice of back-end network.

Jitendra Mohan: Again, for example, if you look at the Blackwell family, they use NVLink, which is a closed proprietary standard, which we do not participate in.

Speaker Change: But when somebody uses a PCI Express or PCI Express-based protocol as their back-end connectivity, then our content goes up pretty significantly because now we are shipping not only our re-dammers, but also the smart cable, AD smart cable modules into that application.

Speaker Change: Similarly, if the back-end interconnect is Ethernet, that will benefit our TORUS family of product lines. So it really varies greatly on what the architecture is of the platform and what form factor is getting deployed in.

Jitendra Mohan: Jitendra Mohan, Unknown Executive

Speaker Change: Okay. Okay, great. That's a very helpful color. Thanks. And then just a quick follow-up here. Was there something inherent in the Blackwell transition from Hopper that made this much platform diversification and architecture diversification possible? Or was it just the hyperscalers getting more sophisticated about what they are trying to do? Or was it availability of things like Astera's PCI products? Any color there would be helpful as to how this kind of proliferation of architectures kind of came about.

Speaker Change: I mean, if you look at the Blackwell family, it's like a marvel of technology, the amount of content that is being pushed into that platform is incredible.

Speaker Change: So, what the hyperscalers are doing is they're taking these raw platforms, raw technology, and trying to adapt it so that it fits into their data centers.

Speaker Change: And that's where we see a lot of opportunity for our existing products, the ones that we've talked about, as well as some new products that we've been working on. Again, shoulder to shoulder with our hyperscaler and AI platform customers.

Speaker Change: We're very excited to see how these new platforms will get rolled out, including Blackwell, including the hyperscaler internal AI platforms, and the increased content that we have there.

Speaker Change: Okay, it's a black, well, push the envelope. Great, thanks for the color there.

Unknown Executive: Hey, guys, just a quick follow-up. I know you had the potential for an early lockup expiring Thursday morning. Just wanted to see if you guys could confirm that we are still within the 10 day measuring period so that you could trigger that early lockup? Or does the release of the second quarter results sort of end that period, and we're now looking at a September 16th lockup expiration? Thank you.

Cranbolt: And finally we'll move to Cranbolt and Needham & Company.

Speaker Change: Hey guys, just a quick follow up. I know you had a potential for an early lockup expiring Thursday morning.

Speaker Change: Just wanted to see if you guys could confirm, are we still within the 10-day measuring period so that you could trigger that early lockup, or does the release of second quarter results sort of end that period, and we're now looking at a September 16th lockup expiration? Thank you.

Speaker Change: Yeah, the release of our earnings today, releases at lockup, that opens up on Thursday.

Unknown Executive: It's open Thursday. Okay. Thank you. And the other lockup had already expired long ago.

Speaker Change: It's open Thursday. Okay. Thank you. And the other lock-up already expired long ago.

Speaker Change: But

Jitendra Mohan: Jitendra Mohan, Unknown Executive

Cranbolt: And there are no further questions at this time. I will turn the call back over to Leslie Green for closing remarks.

Leslie Green: Thank you everyone for your participation and questions. We look forward to updating you on our progress during our Q3 earnings conference call later this fall. Thank you.

Speaker Change: And this concludes today's conference call. Thank you for your participation. You may now disconnect.

Speaker Change: [music].