Q1 2025 MaxLinear Inc Earnings Call
Yeah.
Speaker Change: Greetings and welcome to the Max when your first quarter of 2025 earnings call.
Speaker Change: At this time all participants are in a listen only mode. A question and answer session will follow the formal presentation.
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Speaker Change: A reminder, this conference is being recorded.
Leslie Green: Now my pleasure to introduce Leslie Green Investor Relations. Please go ahead.
Speaker Change: Thank you Joe Good afternoon, everyone and thank you for joining us on today's conference call to discuss <unk> first quarter 2025 financial results. Today's call is being hosted by Dr. Kishore Secret Booth, CEO, and Steve Litchfield, Chief Financial Officer, and Chief Corporate strategy Officer. After our prepared comments we will.
Speaker Change: Take your questions. Our comments today include forward looking statements within the meaning of applicable securities laws, including statements relating to our guidance for the second quarter of 2025, including revenue GAAP and non-GAAP gross margin GAAP and non-GAAP operating expenses, GAAP and non-GAAP interest and other expense.
Speaker Change: GAAP and non-GAAP income tax and GAAP and non-GAAP diluted share Count. In addition, we will make forward looking statements relating to trends opportunities execution of our business plan and potential growth and uncertainties in various product and geographic markets, including without limitation statements concerning the future.
Financial and operating results opportunities for revenue and market share across our target markets, new products, including the timing of production and launches of such products demand for and adoption.
Speaker Change: Adoption of certain technologies, and our total addressable market.
Speaker Change: These forward looking statements involve substantial risks and uncertainties, including risks outlined in our risk factors section of our recent SEC filings, including our Form 10-Q for the quarter ended March 31st 2025, which we filed today any forward looking statements are made as of today.
Speaker Change: And Max linear has no obligation to update or revise any forward looking statements. The first quarter 2025 earnings release is available in the Investor Relations section of our website at Max linear Dot Com. In addition, we will report certain historical financial metrics, including but not limited to gross margin.
Speaker Change: Operating expense in interest and other expense on both a GAAP and non-GAAP basis, we encourage investors to review the detailed reconciliation of our GAAP to non-GAAP presentation and the press release available on our website, we do not provide a reconciliation of non-GAAP guidance for future periods because of the any.
Speaker Change: The uncertainty associated with our ability to project certain future changes, including stock based compensation and its related tax effects as well as potential impairments non-GAAP financial measures discussed today are not meant to be considered in isolation or as a substitute for comparable GAAP financial measures we are providing.
Speaker Change: Isn't this information because management believes it is useful to investors as it reflects how management measures. Our business. Lastly, this call is also being webcast and a replay will be available on our website for two weeks and now let me turn the call over to Dr. Kishore syndrome to CEO next linear.
Speaker Change: Thank you Leslie and good afternoon, everyone. Our Q1 results reflect the continued growth and recovery of our business.
Speaker Change: We exceeded the midpoint of our guidance with $95 $9 million in revenue non-GAAP gross margin of 59, 1% and a meaningful reduction in operating expenses.
Speaker Change: We not only expect to be profitable on a non-GAAP basis in Q2, but also most importantly to be able to generate positive free cash flow in Q2.
Speaker Change: In total in Q1, we made strong progress towards a return to profitability and are solidly executing with new product wins in high speed data Center Interconnects.
Speaker Change: <expletive> Wi Fi and Ethernet.
Speaker Change: We had also seen meaningful improvement in our customer order rates and backlog.
Speaker Change: Give us confidence that we can continue to deliver growth in 2025 and 26.
Speaker Change: Looking at our key markets and infrastructure, the increasing demand for high speed data he's driving significant growth in design activity around high speed Interconnects in data centers cloud infrastructure and next generation Telecom networks.
We continue to make strong progress with product calls across multiple customers for our fine nanometer Keystone Pam four DSP product and.
Speaker Change: At the optical fiber conference, we demonstrated nearly a dozen keystone power optical and activate optical cable modules for OSB switches, but you also highlighted a reverse gear box application using Keystone for one of the world's leading module makers as well as our.
Speaker Change: Free timed active electrical cable wire cable solution ultra using Keystone our products with features and demo. The boots are several partners, which are in various forms of production our qualification stages.
Speaker Change: We're also pleased to showcase a live demo of our Rushmore one called one point thanks Jeremy.
Speaker Change: Gigabit per lead and Pam four DSP.
Speaker Change: Keystone, a rushmore family of Pam four D E and DSP spend one points instead of interconnections offers.
Speaker Change: Superior power and performance advantages.
Speaker Change: The basis of our competitive differentiation and design win success.
Speaker Change: We anticipate initial qualification and rollout for 800 gigabit and one points instead of Big data center applications throughout 'twenty five with exciting revenue growth in 2026.
Speaker Change: The wireless infrastructure at the mobile World Congress, we demonstrated a highly integrated theater radio system on chip is a complete open ran macro radio units illusion, which.
Speaker Change: Seamlessly interoperable with all major Gan power amplifiers suppliers utilizing <unk> proprietary digital bridge starts with technology.
Speaker Change: Our wireless fight <unk> acts as a single <unk> and our millimeter wave and microwave backhaul transceivers and modems.
Speaker Change: Essential to supporting increasing mobile usage of data reads as well as new functionalities, such as edge AI.
Speaker Change: We believe we are positioned strongly for content growth and share gains this year as service provider capital expenses improves and as our continued design wins at tier one customers begin to ramp later this year.
Speaker Change: Also within our infrastructure revenues, our banter family of hardware storage accelerator soc's he's strongly.
Speaker Change: <unk> position within the data center enterprise storage applications and the edge of the network with multiple design wins with major customers.
Speaker Change: And value added resellers across key geographies.
Speaker Change: It enables optimized cost follow performance and efficiency of storage and compute server systems by Offloading complex tasks that otherwise required long and costly CPU cycles to execute and sulfate.
Speaker Change: It provides unique and best in class capabilities around data compression integrity and security.
Speaker Change: For 200 gigabit per second throughput and the lowest latencies essential for AI applications.
Speaker Change: Shifting to broadband and Wifi connectivity in the near term, we feel increasingly confident in the ongoing recovery of the broadband and connectivity markets now.
Speaker Change: Now with several quarters of improvement behind US we are excited to begin to ramp up our single chip integrated fiber.
Speaker Change: <expletive> and 10 gigabit bras are gateway Soc, plus Tri band Wifi, seven single chip platform solution with the SEC.
Speaker Change: Major tier one north American carrier later this year.
Speaker Change: This is both a major win and a significant validation of our technology and competitive positioning in the fiber bond market.
Speaker Change: We expect that it will drive meaningful growth for our fiber revenues in 2026 and give us a strong foothold to continue to expand our president skin <expletive> overall.
Speaker Change: Overall bookings have continued to strengthen and we are seeing incremental growth in demand for our cable data DOCSIS products as well.
Speaker Change: As our Wifi and Ethernet solutions with the <unk>.
Speaker Change: Broad portfolio of newly refreshed products ramping into this market and a healthier demand environment. We expect continued growth in these categories throughout the balance of the year.
Speaker Change: In conclusion, we view Q2 in 2025 as a year of strong growth and return to profitability transition as we begin to drive growth in strategic areas of our product portfolio and enjoy the incremental tailwind all of the ongoing recovery in our core markets.
Speaker Change: Investments made in high value categories, such as high speed interconnect with the data center multi gigabit access right.
Speaker Change: Wifi connectivity Ethernet stories accelerators in wireless infrastructure are resulting in strong product traction with tier one customers and partners. We believe this positions us well to accelerate our growth as these markets continue to gain traction in 2026.
Speaker Change: With that let me turn the call over to Steve Litchfield, Our Chief Financial Officer, and Chief Corporate strategy Officer.
Speaker Change: Steve.
Speaker Change: Thank you Kishore.
Speaker Change: Total revenue for the first quarter was $95 9 million up from $92 2 million in the previous quarter infrastructure.
Speaker Change: Revenue for the first quarter was approximately 27 million broadband revenue was approximately $41 million.
Speaker Change: Connectivity revenue was $20 million and our industrial Multimarket revenue was $8 million.
Speaker Change: GAAP and non-GAAP gross margin for the first quarter were approximately 56, 1% and 59, 1% of revenue.
Speaker Change: The delta between GAAP and non-GAAP gross margin in the first quarter was primarily driven by $2 6 million of acquisition related intangible asset amortization.
Speaker Change: First quarter GAAP operating expenses were $99 9 million and non-GAAP operating expenses were $58 4 million.
Speaker Change: The delta between GAAP and non-GAAP operating expenses was primarily due to stock based compensation and performance based equity accruals of $28 9 million combined restructuring costs of $7 9 million in acquisition related costs of $3 2 million.
Speaker Change: GAAP and non-GAAP loss from operations.
Speaker Change: For Q1, 2025 was 48% and 2% of net revenue.
Speaker Change: GAAP and non-GAAP interest and other expense during the quarter was $2 9 million and $2 7 million in respect.
Speaker Change: In Q1 cash flow used in operating activities was approximately $11 4 million.
Speaker Change: We exited Q1 of 2025 ahead of plan with approximately $104 million in cash cash equivalents and restricted cash.
Speaker Change: With the overall improvement of our business, we expect that in Q2, we will have positive operating cash flow and thus began to generate cash get.
Speaker Change: Our days sales outstanding was approximately 94 days in Q1.
Speaker Change: Gross inventory was down versus the previous quarter by approximately $4 3 million as we continue to make improvements with inventory turns at one three.
Speaker Change: This concludes the discussion of our Q1 financial results.
Speaker Change: Before providing our guidance for Q2 I'd like to comment on the tariff situation and the geopolitical dynamics around semiconductors.
Speaker Change: As you are all aware the market is.
Speaker Change: A tremendous amount of uncertainty with regards to the trade environment.
Speaker Change: We are working closely with customers to address the changing landscape and have taken the current environment into consideration with our guidance. It's.
Speaker Change: It's important to acknowledge though that the guidelines are still evolving so it's difficult to know exactly how the demand drivers will play out for the quarter and for the rest of the year.
Speaker Change: With that let's turn to our guidance for Q2 of 2025. We currently expect revenue in the second quarter of 2025 to be between $95 million and $115 million.
Speaker Change: Looking at Q2 by end market, we expect all end markets infrastructure broadband connectivity and the industrial multi market to be up in the quarter.
Speaker Change: We expect second quarter GAAP gross margin to be approximately 54, five to 57, 5% and non-GAAP gross margin to be in the range of $57 five and 65% of revenue.
Speaker Change: We expect Q2 2025, GAAP operating expenses to be in the range of $92 million to $98 million.
Speaker Change: We expect Q2 2025, non-GAAP operating expenses to be in the range of $55 million to $61 million.
Speaker Change: We expect our Q2, GAAP and non-GAAP interest and other expense each to be in the range of two to three months.
Speaker Change: We expect a $2 million to $4 million tax expense on a GAAP basis, and non-GAAP tax rate of 10, 5%.
Speaker Change: We expect our Q2, GAAP and non-GAAP diluted share count to be approximately 87.0 to $87 5 million.
Speaker Change: In closing another quarter of improvement in customer orders and continued new product traction gives us confidence that we will continue to see growth and recovery in 2025 and beyond.
Speaker Change: We're excited that our innovation and our investment in strategic applications, such as optical high speed interconnect wireless infrastructure storage Ethernet Wi Fi and fiber pawn gateways are beginning to deliver new and transformative business opportunities are continued growth coupled with our strong focus on operational efficiency.
Speaker Change: <unk> is positioning us for a sustainable return to profitability and cash generation this quarter.
Speaker Change: With that I'd like to open up the call for questions.
Speaker Change: Thank you.
Speaker Change: Ladies and gentlemen, if you would like to ask a question. Please press star one on your telephone keypad and a confirmation tone will indicate your line is in the question queue.
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Speaker Change: And our first question comes from the line of Christopher Rolland with Susquehanna International Group. Please proceed.
Speaker Change: Hey, guys. Thank you so much for the question and Ah I guess.
Speaker Change: Just as we all care about tariffs right now I'll ask on the supply chain and I understand the uncertainty, but if you could perhaps walk us through some of the risks that you see.
In your own but also your customers' supply chain like for example, I believe a lot of like broadband equipment is manufactured in China, how how transferable would this be to other geographies.
Speaker Change: Just just generally if you could give us a sense of these risks are you know how these risks could be mitigated in and if there's anything that kind of keeps you guys up at night.
Speaker Change: Yeah, Chris Thanks for the question and Theres plenty of keeping us keeping us up at night right now.
Speaker Change: So I mean, just maybe to start with look we don't have a lot of real direct impact right. I mean semiconductors are not included here. So we're not seeing a direct tariff so our supply chain actually is pretty good.
Speaker Change: So we feel pretty good about that.
Speaker Change: Your second part of your question you kind of alluded to the customers I think where we're at.
Speaker Change: Just watching closely is what's customer demand look like.
Speaker Change: Does that you know how did the tariffs kind of gets transferred to the consumer ultimately does that slow demand. So we're watching that.
Speaker Change: In between all of that.
Speaker Change: And Odm's and Oems and how they're navigating this environment you mentioned that China is.
Speaker Change: Bigger kind of box manufacturing broadband that's a whole lot less true today that it was five years ago five years ago, we saw some impacts here.
Speaker Change: Most of those those customers have moved out of China. So, we actually see less of a risk around that but.
Speaker Change: But as you know there's tariffs that are being proposed on all of the countries I think the one that everyone seems to be circling around as China, having the biggest impact and so that's the one that we're watching closely it seems like a lot of the other ones hopefully.
Speaker Change: We will be reduced a little bit and have less of an impact at least on our ecosystem anyway.
Speaker Change: Okay. Thank you.
Speaker Change: Yeah, No no I didn't say that.
Speaker Change: That's great Yeah, I see that all of our.
Chris: Hey, Chris I would say that.
Chris: None of our broadband CPE customers make any boxes in China for our customers. So I can I can say that not all malls. It's all of them. So we are saved from a China manufacturing perspective, we don't have any exposure there, but more importantly, I think our bookings have been pretty strong even oh, let's say so.
Chris: If we look at it in two buckets.
Chris: The craziness that May come later, where it says what was let's say two weeks ago and our bookings have been very strong we had been taking bookings even into Q3 Q4. So we are seeing.
Chris: A nice recovery has now been going on for several quarters on our broadband business. So I would put it in two categories are in terms of what is the true demand versus what is the supply chain driven yanking, whether it's you know accelerated demand versus maybe a delayed demand we see both sides of it so but from our perspective either.
Chris: Lead times for manufacturing being anywhere between 16 to 20 weeks any.
Chris: Gyrations that come from the 90 D. It's added Paul a pause is not going to have any effect on our on our EBITDA on our ability to supply chips in an accelerated manner or a decelerated manner.
Chris: We're well past that.
Speaker Change: Great. Thank you guys and I also just as you brought up bookings Kishore.
Speaker Change: I was just wondering you know it was great that you think everything is going to be up next quarter, but if you look at bookings. If you look at that order book, If you take a gas and maybe you can fill us in in those inventory situations per end market.
Speaker Change: Could you force rank those segments for us.
Speaker Change: Into a into the next quarter.
Speaker Change: By strength.
Speaker Change: I think in general all or problem is very different from the ones. We have been enjoying the demand in the data center for some time now right. We are recovering from a what was a 2022 peak.
Speaker Change: The consumption of our products, specifically broadband and telecom markets. So that depletion is he is almost fully setting now and that's what we're seeing we're reaping the channel inventories are lower than they should be so we see strong bookings from Q4 onwards, even from Q3 last year and.
Speaker Change: We are actually now taking bookings for Q3 Q4 so.
Speaker Change: I I believe that the channel inventory issues that may develop because of for some of the customers are not necessarily particular too.
Speaker Change: The issues, we faced in the previous two years. So we are pretty much right now in our filling pattern rather than waiting to deplete bedroom.
Speaker Change: Okay did you see any strength you know one segment versus the other.
Speaker Change: Yeah.
Speaker Change: Actually we are seeing.
Speaker Change: We are seeing straight generally broad based strengthening of demand.
Speaker Change: Except we are seeing some weakness in our industrial market studies in China that has got China exposure.
Speaker Change: From an end demand perspective, but otherwise we are feeling pretty positive that we will continue to grow strongly for the rest of the year and beyond.
Speaker Change: Great. Thank you so much for the update guys I appreciate it.
Chris: Thanks, Chris.
Speaker Change: And our next question comes from the line of David Williams with the Benchmark Company. Please proceed.
David Williams: Hey, good afternoon, Thanks for taking my questions and congrats on the stabilization and the positive outlook here.
Speaker Change: So.
Speaker Change: My first question is maybe Kishore you had pointed to the design win progress on the DSP side for Keystone and that continued through the quarter can you help us try to understand the magnitude of maybe that progress and where you are in terms of the design wins and maybe that ramp as we think about the next maybe six to 12 months.
Speaker Change: So David Thank you you'll be feeling very very positive finally, right. When you reach that he is only one then you can sort of you know exhale. So we're very happy that we are expecting to breakeven in Q2, and turn cash flow positive as well, it's a major milestone given what's happened in the last few quarters right. So that's the good.
Speaker Change: Use.
Speaker Change: And and we think that the rest of the year, we will keep generating positive cash flow. So moving to the data center at the optical fiber conference.
Speaker Change: We displayed about 20 designs on display that are done.
Our party in our booth and.
Speaker Change: There are partners, who are showing that there was all the actually Keystone based in Vienna for demonstrations of evaluation platforms, where our Rushmore design. So if you look at those 20 design. That's one way to look at all of those 20 designs that are in various stages of qualification and I think Steve has already guided in the last earnings call.
Speaker Change: That'd be woodlands, I'm, there between $50 million to $80 million that things, specifically is that $60 million to $70 million, which would be a doubling of last year's revenue. So I would say given how long it takes to qualify in this market.
Speaker Change: You know and because they're pretty highly demanding market is a pretty complex product, even though you're calling deal with S. P. A.
Speaker Change: So the fact that we can double our revenue is proof that the quality of our designs and the caliber of our customers.
Speaker Change: Quite different from last year, otherwise you won't be able to double your revenue. So we feel very good and at least at least my all of that sort of you know musings. What does next year look like obviously, we hope that in the calls all good in a nice way can be doubled from here and in 'twenty 'twenty six but that requires some key calls to complete.
Speaker Change: And it all slated for the second half of this year and we expect all the revenue next year actually coming from Keystone.
Speaker Change: While okay I hope that's helpful.
Speaker Change: Fantastic color. Thanks. Thanks, so much there and then maybe just secondly on the North American that second tier one.
Speaker Change: It sounds like Youre expecting that kind of ramp in the back into the year and then more fully next year can you kind of talk maybe size the magnitude of that and how we should think about that ramp.
Going forward. Thanks.
Speaker Change: So I'd say on the broadband <unk>.
Speaker Change: The tier one operator in North America, Yes, I mean, we're pretty excited we were the we were the first ones to be selected for the new new category of high end box as against what you all noise it pretty vicious competition right and so it would be a nice anchor that adds to our other tier one operator in North America for the Gateway design.
Speaker Change: But it is clearly the bigger player. So we're very excited about it and I think one of these guys ramp will be ship a few quantities. They have ER. This year towards the end of the year for sure of course, but next year would be the ramp and hopefully we're the first ones to ramp before the second supplier. It comes online and we seem to have a.
Speaker Change: Good lead lead on that so we should enjoy significant growth. So you can think of a bond revenue today, yes, I mean, the $50 million range next year can you double overall, absolutely that's the goal here.
Speaker Change: Yeah.
Speaker Change: Thanks, so much.
Speaker Change: Our next question comes from the line of Jeremy Kwan with Stifel. Please proceed.
Jeremy Kwan: Yes. Good afternoon, let me add my congratulations on.
Speaker Change: Yes, the recovery here I.
Speaker Change: I guess maybe.
Speaker Change: Many absolutely end market question, just on a longer term basis, it looks like you're seeing some nice recovery in broadband connectivity infrastructure.
Speaker Change: It looks like it's going to be a nice growth driver.
Speaker Change: Would you.
Speaker Change: Can you rank order those for US maybe as we look out to calendar 2006 and two.
Speaker Change: Terms of the growth contribution.
Speaker Change: So let me maybe Steve can answer those corner Iridium question, a little bit better than I can but I would just say that infrastructure is clearly been the focus of a massive investment for us strategically important because I look at your perspective, a very very core American market right. If you really look at it there are two markets.
Speaker Change: That are the biggest ones one is the enterprise infrastructure market, which is now primarily the cloud market. The other one is the consumer market and we are not a consumer products company. So for us being an infrastructure monitoring is a strategic imperative.
Speaker Change: And it drives a lot of differentiation.
Speaker Change: And gross margin improvement for the company.
Speaker Change: So I would think that the infrastructure would be the most exciting growth on our new product cycle basis right.
Speaker Change: What you will see in broadband is some level of pretty rapid recovery.
Speaker Change: I'm talking of I'm, not going to comment on tower C. It right I'll just leave that aside if you just look at it in a secured term there.
Speaker Change: Well, we are going to be a strong growth driven by recovery in the core market.
Speaker Change: And a pretty decent teens sort of growth from new product cycles.
Speaker Change: That's a pretty healthy product and.
Speaker Change: Then.
Speaker Change: You add to that what's happening in.
Speaker Change: The new product like Poland, We talked about I gave gave the size of it but it is a pretty east cable also we should start seeing some oh sort of falling in the cable DOCSIS data market Doe netbooks are being still being upgraded there's a lot of demand for increasing their competitive position against <expletive>.
Speaker Change: I think for us broadband actually it's kind of exciting, though data center and infrastructure.
Speaker Change: Strategic imperative on wireless in particular.
Speaker Change: Good things are happening actually would have very strong growth in 26 on the backhaul with Sierra product access market, we will start pivoting towards being maybe one of the top silicon providers as a merchant silicon providers. So yeah.
Speaker Change: I would say infrastructure broadband would be the new product cycle growth and then you have a you know we'll have some other new products like <unk>, but it won't be as exciting in the industrial markets because the market is up and down in some areas. So those two would be I would rank pretty high.
Speaker Change: Great. Thank you.
Speaker Change: Yes.
Speaker Change: Maybe digging a little deeper into the us towards accelerating market it sounds like that's silly.
Speaker Change: Two contribution can you give us an idea of maybe what are some of the key applications any sense of how many.
Speaker Change: Customers you can talk about.
Speaker Change: Quantity wise.
Speaker Change: And.
Speaker Change: Is it more enterprise or is it more data center.
Speaker Change: Could you provide would be very helpful.
Speaker Change: So at the end of the day, even if his enterprise I just wanted to make sure that they are selling these boxes to the storage appliance silver a compute silver boxes. They are all they're all ending up in some form of AI edge data center or in the data center, having said that we are 20 odd proof of concepts going on right.
Speaker Change: The revenue, we talk about somewhere between $10 million to $20 million in 2025 is <unk>.
Speaker Change: He has driven by enterprise storage today, and some some royalty software license revenues as well because you also have it.
Speaker Change: <unk>.
Speaker Change: Our padded offering on the store using OSM, Peter the algorithms for better accomplished in storage in the traditional systems.
Speaker Change: And then we had these compute.
Speaker Change: The servers that are being.
Speaker Change: That would be actually that'd be demonstrated ranked via the Atlanta Supercomputing conference, maybe demonstrative with Q T because a major.
Speaker Change: Compute server manufacturer there they use storage compression, but the key point is why do they need it.
Speaker Change: It's not just about <unk>.
Speaker Change: Compression and security, but it using the amount of storage space is actually a wrap a very very powerful enabling capability may be reduced feed agency of compute by really having a very very low latency storage with very very high density completion.
Speaker Change: So what that does is when you look think about AI type of applications, whether it is.
Speaker Change: Inside the data center outside the data center it becomes very critical not to have bottlenecks in the whether it's training or inference systems. So I think at this point to be honest with you. We are revenues are coming from.
Speaker Change: Our enterprise and we just basically storage appliances and compute servers, how would it be X. We have a lot of strong traction after a reference platform announcement with AMD, a joint development platform, but we're getting a lot of attraction in the other non enterprise markets as well.
Speaker Change: So if.
Speaker Change: Just fast forward this year $10 million to $20 million get a double or triple next year, absolutely because once you qualify it. It just takes off and then Paul as I had told a year ago that in two to three years, we should see based on enterprise storage alone is up there.
Speaker Change: Speaking of maybe $75 million revenue, I said $50 million to $75 million I think yes.
Speaker Change: Yes, it's delayed a little bit, but nothing beyond what we had forecast and maybe we should be able to hit that benchmark purely of enterprise storage now if we were to get one or two calls of the compute compute side I think this could easily be a two.
<unk> on that in a five to seven year window, so very very nice differentiated product that nobody else, having such an offering in the world.
Speaker Change: Okay.
Speaker Change: Perfect. Thank you very much.
Speaker Change: Okay.
Speaker Change: And our next question comes from the line of Quinn Bolton with Needham <unk> Company. Please proceed.
Quinn Bolton: Hey, I just wanted to come back just a couple of clarifications on tariffs one you'd mentioned none of the CPE box is manufactured in China, but my guess is they're probably at a number of them manufactured elsewhere in South East Asia, where there are no reciprocal tariffs I know theres been paused for 90 days, but to the extent that those aren't totally.
Quinn Bolton: Taken away would you expect some greater tariff effect, possibly in the second half of the year and then the second clarification is you guys manufacturer everything overseas right. So there's no reciprocal tariffs for any semiconductor chips, you shipped into China, whether it's consumed in China, whether it's re exported rights or no.
Quinn Bolton: No tariff costs on your products to the extent that they flow through China.
Quinn Bolton: That's correct Glenn.
Quinn Bolton: With regard to the first part of your question.
Speaker Change: Yes, I mean, all of the other south east.
Quinn Bolton: Asia countries, where a lot of these boxes are manufactured or at least currently planned to be subject to these tariffs right and.
And I think this is the part that there's plenty of uncertainty.
Quinn Bolton: And trying to figure out.
Quinn Bolton: How things move around right and what the Odm's and Oems kind of decided to do on this front.
And we don't have 100% clarity is all pretty new right now and so this is where I mentioned kind of working with the customers trying to help them.
Quinn Bolton: Get get those boxes kind of through.
Quinn Bolton: Through the whole tariff.
Quinn Bolton: <unk> if you will.
Quinn Bolton: And that's what we're doing right now.
Quinn Bolton: All of our if you really step back a little bit.
Quinn Bolton: The broadband <unk> have been.
Quinn Bolton: Tired offerings for the last two or three years because of the excess inventory in the system.
Quinn Bolton: But now the transit transitioning to a new generation boxes, but there's 10 gigabit PON or and so on and so forth. So Omani surmise is that is that these are needed to be competitive offerings, and that's where the applications are going on.
Quinn Bolton: While I cannot I'm.
Quinn Bolton: I'm not a macro economist, but I think that you know the demand is the demand and and then you know the price has been.
Quinn Bolton: Be adjusted within the supply chain here.
Quinn Bolton: But but I don't think the demand goes away because I think broadband is a very elastic market what makes it boring and what makes it exciting from it depends on which viewpoint you take and so I feel very comfortable that we will be able to continue.
Quinn Bolton: Continue to grow in broadband.
Speaker Change: Got it and then.
Speaker Change: Maybe just you know given all of this uncertainty can you give us a sense like how you approached guidance in this in the site is the 105 million mid point did you kind of say hey, we're going to take our forecast judge it down and you came up with $105 million at the midpoint or is 105 kind of where you think things fall and then you just.
Speaker Change: Broadened out the range given the uncertainty just any any sort of sense. How you might've accounted for this tariff uncertainty in the guidance and then I do have one business question, if I could squeeze in a third.
Speaker Change: Yeah look I think I covered this in the prepared remarks.
Speaker Change: We've done our best to anticipate the tariffs that we have in front of us.
Speaker Change: And that's what we based our guidance on.
Speaker Change: What was your other question.
Speaker Change: The other question is just I think last quarter, you talked about you know some variability in the optical DSP ramp dependent on the timing of hyper scaler 800 gig ramps in the second half of 2025 wondering you know as you sit here today, how are you feeling about timing of those 800 gig ramps are you feeling better that.
Speaker Change: Those hit in 2025 is there still some uncertainty on Windows 800 gig deployments at the hyper scaler.
Speaker Change: Start to kick in.
Speaker Change: So I think you covered this in his question I mean, we've had a guidance of 60 to 70 million I think we stand by that and we're comfortable with that as you're well aware I mean, most of those 800 gig.
Speaker Change: Rents are in the second half of the year. So that's also consistent with the way we've talked about them and I think.
Speaker Change: We're completely comfortable with that.
Speaker Change: Okay, great. Thank you.
Speaker Change: Okay. Thank you.
Speaker Change: Yeah.
Speaker Change: And our next question comes from the line of Ananda Baruah with loop capital markets. Please proceed.
Ananda Baruah: Hey, guys good afternoon.
Speaker Change: Thanks for taking the class it after maybe only three Chad yeah. Good to talk to you guys.
Speaker Change: I guess Kishore and Steve you just may be implied and all of the comments you guys have already made.
Speaker Change: <unk> demand environment.
Speaker Change: But let me just let me also just ask it this way to make sure I cover that cover the basis here. So it sounds like Kishore.
Speaker Change: No macro no no no no signs of macro impact yet.
Speaker Change: In your order book.
Speaker Change: And let me also ask do you think you are seeing any pull forward.
Speaker Change: Revenue it doesn't sound like it but let me ask that question as well.
Speaker Change: Yeah.
Speaker Change: Was wondering when that question was going to come of the pull forward it looks like Colgate huh.
Speaker Change: Not really.
Speaker Change: Yeah. Okay. We are pretty early in our earnings call in that 90 day window of pause announcement, a few days ago right. So the reaction time is it'll take a little longer. So if add then booking spike up let's say this week or next week. Some some people have talked about it.
Speaker Change: And we talked to colleagues in the industry.
Speaker Change: We will take them with a more than a grain of salt lets put it that way and we've been trying to be measured about it but I wonder repeat again that our lead time for chips.
Speaker Change: Is it about 16 to 20 weeks. There is nothing you can do in the 90 days, that's going to change our ability to ship product. So it would be would not be we will not be able to mobilize even if they were to spike orders on us. So that's the reality.
Speaker Change: And then.
Speaker Change: Maybe.
Speaker Change: I'll just echo the overall demand I mean, because.
Speaker Change: Yes, the world has kind of been turned upside down in the last two weeks, but.
Speaker Change: I really want to echo the last quarter or two or three quarters for that matter. We continue to see improvements right. That's the recovery there.
Speaker Change: We've talked about a little bit earlier in the prepared remarks.
Speaker Change: That backlog has continued to improve the bookings have continued to improve for six quarters now.
Speaker Change: And so yeah, a lot of encouraging signs on the new products as well as our existing products.
Speaker Change: That's super helpful and I guess, just my quick follow up on the demand side is it.
Speaker Change: Kishore you comments about data center and make it it sounds like this all applies to the datacenter as well in the data centers are I'm paraphrasing here, you say full speed ahead, and maybe I'm, making that up but I thought there was some comment about data center energy spend than AWS.
Speaker Change: AWS and Google has come out in the last couple of weeks and reaffirmed spending plans, where it is this morning, it looks like Super bullish not just for Hyperscale clouds and color. So I guess why that just sort of clarify that it sounds like youre seeing.
Speaker Change: No change in activity in the data center space either.
Speaker Change: Okay.
Speaker Change: For us it's all it's still about.
Speaker Change: Right.
Speaker Change: <unk> the products together, so to speak right quantifying and that sort of work right Oh.
Speaker Change: We don't have the levels of our incumbency that are where the dialogue is very different. So I think at this point no change for us, though we have to go about our actions.
Speaker Change: So I really cannot comment on what a large incumbent.
Speaker Change: Folgers mean to these situations.
Speaker Change: Okay. That's helpful. I appreciate it thanks guys.
Speaker Change: Yep. Thanks.
Speaker Change: And our next question comes from the line of Richard Shannon with Craig Hallum. Please proceed.
Richard Shannon: Thanks, guys for taking my questions I'll ask one on the wireless infrastructure side Kishore, a sticky French and just briefly here, we'd love to get a sense of of your confidence of the.
The ramp up here later this year, maybe you can talk to the extent to which you see the revenue growth coming more from the content side or also from unit side as well.
Richard Shannon: Yeah.
Richard Shannon: Absolutely if you look at it.
Richard Shannon: Sure.
Richard Shannon: Up until now our revenues were primarily countries drove two parts to our wireless infrastructure right monies millimeter wave and microwave backhaul transceivers and modems and last year.
Richard Shannon: And this year sort of you know suddenly not loss and this year. The revenues came really really down because the telco stopped spending because.
Richard Shannon: But however, we are now.
Richard Shannon: See bookings picking up very nicely.
Richard Shannon: Strengthening and we we hope to double from what we did last year on that product line alone. But in addition, the axis, we ever see a product where the content in the platform is going to increase quite a bit. It's a it's a single chip macro radio unit.
Richard Shannon: He's a very good customer design win traction in mobile World Congress, we had so much.
Richard Shannon: What sort of president and traction in terms of all the things we were showcasing so we expect there'll be a strong driver next year.
Richard Shannon: Darts picking up this year.
Richard Shannon: And that's a brand new platform, because we own the platform just like in the.
Richard Shannon: On the microwave and millimeter wave backhaul, we expect revenues to access to continue to grow over the next five to six years on the backhaul side, there's lot of strong demand in all of our events that means that these E edge applications are driving more and more data requirements and so we see demand for millimeter wave.
Richard Shannon: Products, which did not exist in the previous revenues. So we are actually seeing strong growth in the millimeter wave transceivers and backhaul motives. So those two would be the big drivers of growth.
Richard Shannon: On top of that we expect a recovery of the normal core business as well so right. So that would be the layering of it. So you will see a strong.
Richard Shannon: Strong revenue growth coming from just recovery and then product cycles secular growth over the next few years by content growth more millimeter wave microwave modems and Transceivers and also the brand new category of single chip macro platform.
Richard Shannon: C N type product.
Richard Shannon: But at these stations.
Speaker Change: Okay, and if I can just confirm one of your commentary I think you said doubling from last year alone I didn't know if that wasn't a comment across the whole wireless exposure or something specific can you clarify that please.
Speaker Change: Yes, it's across the whole wireless exposure.
Speaker Change: Got it okay. Perfect. My follow on question is related optical DSP here I guess I'm wondering to get a sense of when and how do you expect to get in and look for a higher allocations of share with your Keystone platform at <unk> to what degree do you see that success, there happening and also being applied to Rushmore as well.
Speaker Change: Okay.
Speaker Change: We're very very good question, but let me first answer the reservoir scenario look we are on the first one with a small product, but our general competitive.
Speaker Change: The anchor is extremely low power and superior performance right. That's the focus on and it's just the way the cycle plays out right, but the only only customer who is deploying a the one one points extended platform within media and they have made their choices.
Speaker Change: So if any opportunities come we will have to come later on when they actually start shipping reasonable volumes right now the volume is not that much and then they need a third supplier right just to diversify the change. So all the entire premise is anchored on really penetration on the known Nvidia type market.
Speaker Change: And those items won't happen until the latter half of next year I'm sure. There are some that are happening now, but our product will really be the end of 2006 revenues on the one point, it's extremely bitter export product.
Speaker Change: We showcased in demo a we'd have to do an evaluation sampling to customers and then we are qualified for production and then you know the interim qualification and so on so it's a bit of a train there where to get through.
Speaker Change: So the revenue banking is really one of our Keystone product, which is the 400 gigabit per second applications eight and that gave me gigabit per second applications.
Speaker Change: And there are.
Speaker Change: The U S is going to more and more transition to 800 gigabit per second.
Speaker Change: China Hyperscale, there's sort of more really transitioning heavily into 400 gigabit per second and later do agents gigabits per second.
Speaker Change: So do we think about these markets over the next five years about 70% of the market would be the 800 gigabit category and the 30% of the market would be the one six terabits category. So.
Speaker Change: From an allocation perspective, we expect that over the course of over the course of time.
Speaker Change: We expect and plan the business to be about 20% of the market.
Speaker Change: And that's all we get over the next three years or four years about.
Speaker Change: Elevated between 202, we've given a range of outcomes that maybe it would be you know, let's call it $100 million revenue.
Speaker Change: That's the that's the business plan okay.
Speaker Change: With regard to one set of six database, it's a continuation.
Speaker Change: Credibility and our commitment to the market investment, but Keystone will be the bigger anchor of revenues in the near to midterm.
Speaker Change: I appreciate all that and say okay sure. Thank you.
Speaker Change: Yes.
Speaker Change: Yeah.
The next question comes from the line of Sushi de Silva with Roth Capital. Please proceed.
Speaker Change: Thank you sure Hi, Steve maybe the same question is Richard asked a few questions ago, but on the broadband side is there a content gain a booster to the unit recovery or growth youre seeing in broadband from excellent here.
Speaker Change: Very good question. Indeed, the prepared remarks, I don't know if you mentioned this or not but all the new product revenue cycles are based fall volume expansion.
Speaker Change: And here is the where the ballroom expense proceed upon the bond world is transitioning to X gene one right and then that means you you have a hefty a processor you have a more bulky modem and then the Wi Fi that goes with it is one seven is all of them or Wi Fi six right. So on the cable side.
Speaker Change: The new product cycles are driven by DOCSIS four going to more precisely ultra DOCSIS right, that's going to be the real driver more than Mdx DOCSIS 4.0, yes, that'd be delayed from pretty 20 by 2026 due to network upgrades.
Speaker Change: Making sure everything is fine, but that would drive the content increase as well and then you know in these platforms, but it is a mood and Moura gateway you get content expansion, even on the Ethernet side right because all of these airports for Ethernet.
Speaker Change: For months airports multi gigabit multi.
Speaker Change: Or we're not gigabit Ethernet and gigabit Ethernet Phy solutions going forward or a new important zone and then you know you also add.
Speaker Change: The fact that.
Speaker Change: You know all of these require.
Speaker Change: Upgraded sort of you know capability to support so much content for power efficiency is wonderful. So it's all new product cycles of content expansion and the quality of the market is going to be driven by income. He committed solutions, if you call them legacy Sobeit.
Speaker Change: <unk> six and DOCSIS three one.
Speaker Change: And tuneup gigabit pulling other prevailing solutions okay.
Speaker Change: Yep, so 30% Bom expansion on legacy platforms that the transition is a normal metric to use for bone which function.
Speaker Change: Okay appreciate them, putting Nebraska, and then a question for Steve QQ guidance for core expenses kind of reflect some of the cost efforts.
Speaker Change: As the two key levels or the new baseline to go forward or are there more.
Speaker Change: Cost restructuring benefits that would flow through the second half before we get to a new level.
Speaker Change: Yes, So I think we've made some great press.
Speaker Change: You know kind of post some of the announcements that we made in Q3 of last year. So as projects kind of ramp down then you're you've seen us come down. So I do think there's a little bit further to go where were see kind of another step down in the back half of the year on the Opex side.
Speaker Change: Okay, great. Thanks, Dan Thanks, guys.
Speaker Change: Yeah.
Speaker Change: Yeah.
Speaker Change: And the next question comes from the line of Tim salvage along with Northland Capital markets. Please proceed.
Tim Salvage: Hey, good afternoon.
Tim Salvage: A couple of questions to start with just about moving parts.
Tim Salvage: Within the segments in Q1.
Tim Salvage: <unk> came in much better than expected.
Tim Salvage: Nearly 40% sequential.
Speaker Change: And I was wondering if there were any particular drivers there on either the PON or cable side for that upside and then I'll follow up.
Tim Salvage: Yes, Tim.
Tim Salvage: It wouldn't you are right to point out it was it was up a little more than what we'd expected kind of had seen this coming for a while and so youre kind of seeing a follow through it was particularly high for kind of a typically seasonal Q1 and broadband. So so it was up quite a bit more it was kind of across.
Tim Salvage: The board honestly.
Speaker Change: And because I think Kishore mentioned this previously but like some of the bigger pond ones really don't even around until late this year or next year. So some of the newer PON stuff is still to come but so it was mostly across the board.
Speaker Change: Okay. It sounds like cable, that's what I would take away on that.
Speaker Change: And similar question on the infrastructure side, where you were flat in the quarter.
Speaker Change:
Speaker Change: And I know you had a big Q4 on the AI kind of optical side.
Speaker Change: I don't know whether that might have backed off a little bit who saw growth elsewhere, but looking for color there.
Speaker Change: And at this point I'm, assuming that you're.
Speaker Change: AI optical chip business is more than half of infrastructure revenue.
Speaker Change: In Q1 at least.
Speaker Change: I mean, so I mean.
Speaker Change: I think the only color around infrastructure in the quarter I mean, as you know optical will grow quite a bit this year and start to be a more meaningful percentage of the infrastructure business.
Speaker Change: It's on track I think that performed as expected in the quarter.
Speaker Change: We've been talking about wireless a little bit today. That's the piece that you know is still kind of recovering.
Speaker Change: And I would expect to see more growth is that growth out of that in the second half of the year than we saw in the first quarter.
Speaker Change: Okay, Thanks onward and upward.
Speaker Change: To the final question and that's you mentioned OFC.
Speaker Change: Yes.
Speaker Change: A lot of module is running in a lot of places with your chips in them I think in your booth.
Speaker Change: Guys, who are potentially facing some really high volumes complied opto and currently seeing them like coherent.
Speaker Change: Jabil has seem to have a pretty good show Cisco is talking more about client optics I mean as you look at this group.
Speaker Change:
Speaker Change: I guess, how how concentrated or not would you expect.
Speaker Change: Your your AI optical revenue to do.
Speaker Change: This year going out into next year and.
Speaker Change: Should we look at it as fairly broad based or do you have a couple of real important design wins and you have some guys in China to that that we should be thinking of thinking of us as key drivers for the business.
Speaker Change: Look I mean, if you just round up the data center module makers.
Speaker Change: There are five big ones right.
Speaker Change: And if you do not have.
Speaker Change: Have a damn all of them or at least the majority of them. There is no way you can build up your revenue so by definition that concentration.
Speaker Change: And the remaining five are will be there to sort of do the other the other.
Speaker Change: 30% of your revenues, let's call it that right. So I think with the size of these revenues you should expect a two thirds one third spread no. This is a very theoretical solution. So as we build up more customers.
Speaker Change: Usually the way it starts initially you all your revenues are.
Speaker Change: A bunch of guys right. This will be a market player then you'll you'll get that Texas and then Monday Guide comes online then you get a couple of others and then from there on it's you grow with the market you grow share in that sort of a thing I think I played the classic trend. So I think in the long term you should expect two thirds, one third two thirds coming from.
Speaker Change: All the players and the remaining one third coming from a range of players I think that's the way I would distribute them.
Speaker Change: Nope, that's great color I appreciate it.
Speaker Change: Yes.
Speaker Change: Yeah.
Speaker Change: And our next question comes from the line of Karl Ackerman with BNP Paribas. Please proceed.
Speaker Change: Yes, Thanks, gentlemen, I wanted to circle back on broadband and connectivity for sure I think you indicated.
Speaker Change: That that combined business could double next year and just.
Speaker Change: And.
Speaker Change: Steve you were talking about how they pan content is in front of you. So if I just tie those two together is the.
Speaker Change: Perhaps doubling or the opportunity to double this business next year is that driven primarily by a cyclical recovery in cable near term or is that driven by just growing mix toward a fiber PON and perhaps the opportunity you see with <unk>.
Speaker Change: You know your integrated hydropower and 10 gig Gateway is let's see I have a follow up please.
Karl: Yeah Karl.
Speaker Change: Sorry.
Speaker Change: I mean, there might have been a miscommunication there because I think you said was talking about the doubling on the wireless.
Speaker Change: Side not on the broadband side I mean with regard to broadband as you know we've had more.
You had more exposure in the cable market, but we're seeing additional traction with PON. We spoke of the other big North America Guy that we've closed and that's expected to ramp late this year early next year. So we do expect to see PON revenues Ram DOCSIS four O ramp.
Speaker Change: Three one ultra <unk>.
Speaker Change: At some point next year.
Will definitely contribute and so as we see I think a broadband kind of you'll see a nice recovery. This year and then you're going to see some good follow on growth as we.
Speaker Change: Bring on either more customers or more wins or more market share gains in all of our markets.
Speaker Change: Yeah.
Speaker Change: Got it yep that thank you for that clarification I wanted to go back to.
Speaker Change: Bookings and visibility you spoke earlier, how you're not seeing any pull forward.
Speaker Change: Two any tariff impact just given the fact that lead times for chips remains in the 16 to 20 week window.
Speaker Change: You also spoke about how bookings are.
Speaker Change: Growing and perhaps are seeing bookings extend beyond Q2 and into Q3 and Q4 I was hoping with that backdrop, you could give a bit more color on.
Speaker Change: You know, whether you're seeing a similar dynamic play out across all end markets and across geographies.
Speaker Change: Or are you seeing perhaps a a larger amount of order visibility in.
Speaker Change: In certain geographies and end markets and others. Thank you.
Speaker Change: So I would say that you know.
Speaker Change: It's pretty much the orders track our growth in.
Speaker Change: In revenues right they have to add some core level and.
Speaker Change: And when I talk of no spike into band I'm, just saying, it's too fresh lost two weeks one to really the 90 day pause or 90 day tariff window to create the spike right and even if what we were saying even if there's a spike we won't be able to supply that spike in demand.
Speaker Change: That's the reality of it so the bookings may be deferred to ease we are referring to prior to this are tired of vacillation right. So based on that we are seeing strong bookings because of recovery in our core business that both Steve and I referred to in our script. So.
Speaker Change: I think that.
Speaker Change: You shouldn't worry about.
Speaker Change: What he did he despite whats going to mean for us right.
Speaker Change: So when you look at the market.
Speaker Change: I mean, if you look at our revenues.
Speaker Change: Almost all of our revenues are in outside of broadband and data center.
Speaker Change: I would say, 80%, 90% outside the U S. So that that should not have an impact on that.
Speaker Change: But if you look at the revenues in the U S. It's broadband and data center.
Speaker Change: So that's.
Speaker Change: That's how I would.
Speaker Change: Categorized them so therefore.
Speaker Change: We started is really primarily a U S scenario and.
Speaker Change: So and then I would categorize it more broadband if and when it materializes. So far we don't have any reason to.
To say that the macro demand is impacted or not impacted so.
Speaker Change: So that's how I would explain the story.
Speaker Change: Thank you.
And the next question will come from the line of Toy Svanberg Stifel. Please proceed.
Speaker Change: Yes. Thank you I just had a couple of follow ups.
Speaker Change: And sorry for staying on the topic of tariffs Kishore, but.
Speaker Change: I understand the order discussion in relation to lead times.
Speaker Change: Had conversations with your customers or supply chain members about contingencies.
Speaker Change: I mean, it sounds like the supply chain do you use this.
Speaker Change: Tariff messes transitory, but have you started having conversations with them about.
Speaker Change: Some contingencies, especially if some tariffs.
Speaker Change: We're going to be higher in certain regions versus others.
It's too chaotic for us we have conversation, but we've all agreed chaotic right. So.
Speaker Change: So it's like a slow moving train the response right.
Speaker Change: I don't think you can respond to these unprecedented changes in.
Speaker Change: Daily sort of changes in the policy rate. So it's really hard to have cogent conversations.
Speaker Change: Especially because we don't build systems, we sell chips.
Speaker Change: It's a it's a very different discussion.
Speaker Change: Right No that's fair as my follow up.
Speaker Change: The multimedia and industrial business continues to be very very volatile and know you pointed out.
Speaker Change: Some China volatility there but.
Speaker Change: Kishore, Steve could you just explain why that business is so volatile quarter to quarter.
Speaker Change: Yes.
Speaker Change: It has been volatile I mean, as you know the industrial market been soft.
Speaker Change: And I think just layer on the China <unk>.
Speaker Change: <unk> that have just made that a lot worse and I think you know just softness in Q1 in general So yeah. There was a big downturn or do you expect to improve nicely.
Speaker Change: In Q2, but.
Speaker Change: It's definitely been volatile you're right George.
Speaker Change: Great and just one last one you guided to.
Speaker Change: Operating cash flow positive for Q2, obviously at the 105 run rate.
Speaker Change: Just curious you know now that you are sort of starting that recovery phase with cash flows.
Speaker Change: What's your inventory days target I know it sort of was flattish maybe it came down a little bit this quarter, but.
Speaker Change: Where would it eventually land sort of in the $121 30 range or.
Speaker Change: Or even lower than that.
Speaker Change: Yeah, well I mean, I think we've got another couple of quarters of it coming down.
Speaker Change: And then but yet.
Speaker Change: You know again as we said earlier tariffs aside.
Speaker Change: Oh.
Speaker Change: I would expect it to come down for another couple of quarters and then at some point, we're gonna have to start to build again as the growth outlook you know starts to improve.
Speaker Change: So.
Speaker Change: <unk> for the next two quarters, and then probably kind of stabilize even with whatever you'll see we are building for the new products that we are in the pipe.
Speaker Change: So we are building inventory also for the right product mix you know the so that'd be an odd running short in supply for the new product cycle ramps. So.
Speaker Change: Very good thank you.
Speaker Change: Thanks, Tori Thank you dori.
Speaker Change: Yeah.
Speaker Change: Thank you this will conclude the question and answer session.
Kishore: Call back to Kishore singer for closing remarks.
Kishore Singer: Well thank you all.
Kishore Singer: We're very excited about the turning point in our business here to returning to cash flow positive.
Kishore Singer: And also on an earnings on a non-GAAP earnings basis.
Kishore Singer: So this quarter. We also have many number of financial conferences and virtual events and then we'd be party city.
Kishore Singer: And we will post details on these on our Investor Relations page.
Kishore Singer: So with that thank you all for joining us today, and we look forward to speaking with you again soon.
Kishore Singer: This concludes today's conference you may disconnect your lines at this time and enjoy the rest of your day.
Kishore Singer:
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Kishore Singer: Yeah.
Kishore Singer: Okay.
Kishore Singer: Uh-huh.
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