Q3 2025 Silicon Laboratories Inc Earnings Call

Speaker #1: Hello. My name is Dean Butler, and I will be your conference operator today. Welcome to the SILICON LABS, third quarter fiscal 2025 conference call.

Speaker #1: At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star 11 on your telephone.

Speaker #1: You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded.

Speaker #1: I will now turn the call over to Giovanni Pacelli. SILICON LABS Senior Director of Finance. Giovanni Please go ahead.

Speaker #2: Thank you, Dean. And good morning, everyone. We are recording this meeting and a replay will be available for four weeks on the investor relations section of our website at investor.silabs.com.

Speaker #2: Our earnings press release and the accompanying financial tables are also available on our website. Joining me today are SILICON LABS President and Chief Executive Officer Matt Johnson, and Chief Financial Officer Dean Butler.

Speaker #2: They will discuss our third quarter financial performance and review recent business activities. We will take questions after our prepared comments, and our remarks today will include forward-looking statements that are subject to risks and uncertainties.

Speaker #2: We base these forward-looking statements on information available to us as of the date of this conference call and assume no obligation to update these statements in the future.

Speaker #2: We encourage you to review our SEC filings, which identify important risk factors that could cause actual results to differ materially from those contained in any forward-looking statements.

Speaker #2: Additionally, during our call today, we will refer to certain non-GAAP financial information. Reconciliation of our GAAP to non-GAAP results is included in the company's earnings press release and on the investor relations section of our website.

Speaker #2: I'd now like to turn the call over to SILICON LABS Chief Executive Officer Matt Johnson. Matt?

Speaker #3: Thanks, Giovanni. Good morning, everyone. SILICON LABS delivered third quarter results consistent with our outlook, demonstrating strong sales and profitability growth driven by disciplined execution throughout the company.

Speaker #3: Based on our Q3 results and Q4 outlook, we expect full-year revenue growth of 34% compared to 2024. Even more exciting is the continued growth ahead with many customers at various stages of qualification and new production ramps, leading into 2026 and beyond.

Speaker #3: Our industrial and commercial business continue to strong performance in the quarter, extending the momentum we have seen throughout the year. Demand for commercial applications such as building safety, lighting, and access points experienced strong quarter-over-quarter sales growth, while normal variation in electronic shelf-label shipments drove softened quarter-over-quarter results.

Speaker #3: In industrial, smart meter demand continues to build as utilities worldwide deploy near real-time tracking of critical infrastructure and resource usage. The rapid rise of artificial intelligence is driving new growth in energy demand, increasing the need for intelligent load balancing across the world's electrical grids.

Speaker #3: In response, many regions including the United States, India, and Japan are expanding, upgrading, or installing new monitoring infrastructure to strengthen grid resilience. This trend reinforces the importance of connected solutions that enable efficient, data-driven management of energy systems.

Speaker #3: As the global leader in smart metering, we are well positioned to benefit from this trend. Our home and life business grew as expected, with smart home applications delivering another consecutive quarter of sequential growth, with medical customers up nearly 60% year over year as we ramp new programs and continue to expand our market share in this area.

Speaker #3: Our strong customer engagements with high win rates in this space validate our conviction that SILICON LABS wireless solutions are setting the benchmark for continuous glucose monitoring and remote outpatient care.

Speaker #3: Markets where reliability, performance, and security are critical. As connected health and smart living ecosystems mature, our differentiated portfolio positions us to capture substantial new design wins across next-generation monitoring, diagnostics, and wellness devices.

Speaker #3: At this year's works with Austin Summit, we were joined on stage by senior leaders from Amazon and Cisco as we introduced two groundbreaking design tools that are redefining how customers develop and deploy connected solutions.

Speaker #3: The first, Studio Six, is a fully revamped enablement platform that streamlines development, integration, and debugging, reducing complexity for engineers across product lines. It offers a powerful suite of tools that have become the hallmark of SILICON LABS' success and a key differentiator valued by our channel partners and broad base.

Speaker #3: The second, the Simplicity AI Software Development Kit, or SDK, is a new platform we believe will become the de facto standard for IoT developers.

Speaker #3: It enables customers to leverage agentic AI trained directly on Silicon Labs' software design rules and frameworks, delivering a step-function increase in the speed, quality, and efficiency of customers' code creation and testing.

Speaker #3: While currently available to select customers, we believe this first move for advantage demonstrates our continued innovation and leadership in this space. The combined impact of these tools is powerful.

Speaker #3: Easier wireless adoption, faster development cycles, and over time, entirely new applications created through human AI collaboration. Another emerging trend we see as a significant future growth opportunity is accelerating demand for active wireless asset tracking.

Speaker #3: Customers increasingly want to monitor high-value assets in real time, moving beyond today's passive RFID tags and costly cellular solutions that limit scalability and battery life.

Speaker #3: SILICON LABS' latest solutions make this possible with advanced radio location features that deliver real-time beaconing with high accuracy and ultra-long battery life. This enables real-time GPS-like precision at a fraction of the cost, which is an ideal for an increasing set of emerging applications.

Speaker #3: As supply chains and operations become more data-driven, secure, and accurate asset tracking will become increasingly essential across logistics, shipping, retail, manufacturing, and so many other environments.

Speaker #3: Looking ahead, we believe our technology leadership and scale in IoT uniquely position us to enable a new wave of IoT growth. Consistent with our existing plans to strengthen our supply chain resilience, this past week we announced the expansion of our partnership with GlobalFoundries to manufacture industry-leading Series 2 wireless SOCs at its Malta, New York facility.

Speaker #3: This long-term partnership will add needed US capacity for competitive IoT wireless solutions for the next decade and beyond, and production will ramp over the next several years.

Speaker #3: Finally, the continued strength of our Series 2 platform, combined with the ramp of Series 3 that will be even more impactful, extends our leadership position and ultra-low power performance with next-generation compute, connectivity, and security to bring more secure, interoperable IoT devices to market faster.

Speaker #3: With SILICON LABS' team continues developing and deploying the next wave of IoT innovation, I'm proud of their consistent execution and remain confident in our strategic direction.

Speaker #3: Looking forward to next year, we expect continued momentum from our share gains converting into revenue, gross margin expansion, and the benefits of disciplined operational management; all of which will support our commitment to delivering sustained earnings growth.

Speaker #3: With that, I'll turn it over to Dean for a closer look at the financials. Dean?

Speaker #2: Thanks, Matt. And good morning to everyone. I'll first review the financial results for our recently completed quarter, followed by a discussion of our current outlook.

Speaker #2: Revenue for the September quarter was $206 million, up 7% sequentially and in line with the midpoint of our prior guidance. Year over year, consolidated revenue was up 24%, which is twice the performance of our most comparable peer.

Speaker #2: The industrial and commercial side of the business was $118 million, or 57% of consolidated revenue. Up 7% sequentially and up 22% from the same period last year.

Speaker #2: Sequentially, the growth was driven by a diverse set of industrial applications like building automation, commercial lighting, and access points. Strong demand from smart metering customers also contributed.

Speaker #2: Home and life, September revenue was $88 million, or 43% of consolidated revenue, up 6% sequentially and up 26% from the same period a year ago.

Speaker #2: Sequential growth was driven by strength in smart home automation customers and year-over-year growth is dominated by new ramps and continuous blood glucose monitors and other medical applications.

Speaker #2: During the quarter, distribution made up approximately 74% of our revenue mix. Channel inventory ended at $61 days and channel point of sale saw a sequential increase in the September quarter as some of the stocking activity is anticipation of customer production plans.

Speaker #2: September gross margins saw another positive progression driven by strength from our product mix and increasing sales through our distribution channel. Gap gross margin was $57.8%.

Speaker #2: Non-gap gross margin was $58%, which was above the midpoint of our guidance and up 170 basis points from the prior quarter, and better than the same quarter a year ago by 350 basis points.

Speaker #2: Gap operating expenses were $131 million, which includes share-based compensation of $20 million and intangible asset amortization of $2 million. Non-gap operating expenses of $109 million, which consistent with our expectations.

Speaker #2: Gap operating loss was $12 million, and non-gap operating income was approximately $11 million. Our non-gap tax rate remained 20%. Gap loss per share was $0.30, and non-gap earnings of $0.32 per share beat the midpoint of our guidance by $0.02, driven by our better-than-expected gross margins in the quarter.

Speaker #2: Turning to the balance sheet, we ended the quarter with $439 million of cash, cash equivalents, and short-term investments. Our days of sales outstanding was approximately 30 days.

Speaker #2: Balance sheet inventory remained essentially flat, ending the quarter at $82 million of net inventory. Days of inventory on hand was also relatively unchanged at $85 days at quarter end.

Speaker #2: Our normal survey of end customers shows further decreasing of customer inventory and is now at the lowest levels since we began tracking this data point.

Speaker #2: Turning to our current outlook, we anticipate the revenue in the December quarter to be in the range of $200 million to $215 million, which at the midpoint would imply a 25% year-over-year growth.

Speaker #2: And continued sequential growth. Q4 sequential revenue factors in seasonality effects which is historically flat to slightly down sequentially. Product mix continues to support a further expansion of our gross margins into the September and December quarter, with both gap and non-gap gross margins expected in the range of 62% to 64%.

And congrats on the progress here. Um, but first question is on the gross margin guidance for Q4 uh, Dean. So, um, you talked about the the 1 time benefit, uh, maybe you could uh, clarify exactly what that is. Even without that benefit, you know, gross margin is up uh, you know, pretty significantly. Uh I think you mentioned. Mix was the main reason but just just wondering how we should think about that Dynamic especially going into 2026. Uh yeah just giving how much higher the gross margin guidance was. Yeah, Tori. Good question, on on Gross margins this is an area I think the company's done really well for the past year as you know continue to improve our growth margins. Uh last quarter we ended at the high end of our long-term stable rate. Now we're pressing up above that uh you're right to have caught about 200 basis points.

Is a 1-time benefit that we'll get into summer quarter.

It's a credit that we're receiving. And the way to recognize the credit is it has to be recorded all in, in 1 period. That's not expected to continue, uh, to to on a go forward basis, which means that the midpoint 63% backing out 200 basis points, uh, were sort of at a stabilized 61

um, when I look into 2026,

Before. Yeah, if that's helpful.

That's very helpful. Thank you. Um, just my follow-up is for Matt. Uh, you know, Matt, you talked about the works with conference and you introduced those 2 new tools, um, and, and particularly interested in the, um,

The SDK based Studio AI that you announced. Uh, you know, I'm just trying to understand, you know what that means for you financially over time? Uh, because, you know, uh obviously this is going to really Excel accelerate. The, the way third party developers designing your product. So, you know, sort of any Financial, uh, impact you could talk about, you know, from that new tool would be really interesting. Thanks. Yeah, absolutely. So, uh, you know, just a reminder for everyone. What, what this is is an agentic AI development environment for our customers and what we showed them is using this environment. It, it absolutely, uh, streamlined. Uh, the steps, it accelerates the time, uh, and really eases the development. So what I would expect toy to be very direct is for experienced developers. This will allow them to be more efficient for uh, new entrance. It'll allow them

Them to, uh, you know, lower the bar in terms of what they need to know in terms of entering the iot space and developing with a wireless solution. So what this should do over time is allow us to scale faster because 1 of the toughest things in the wireless domain is for someone who doesn't know how to use wireless technology to adopt Wireless technology. So this essentially makes it easier and opens the door to more people being more efficient faster time to Market with their iot Wireless developments. So, for us, it should result in scalability and more efficiency in terms of acquiring, customers, designs and scaling not going to happen overnight. But we're already working with our first customers there. And as you've all seen this space is moving fast. So, uh, we're pretty excited about this and our customers are excited about it now, too.

Great caller. Thank you.

Thank you.

And our next question comes from Christopher Ron of cesco Hannah, your line is open.

Hey guys, thanks for the questions. Um, I guess mine, uh, are around both Channel, and customer inventories, uh, which you did address.

In the prepared remarks, um, I guess, first of all, you know, good job on filling the, the, the disc the channel, uh, a little bit more here. Um, I was wondering, you know, what your expectations are? There could we eventually get to the 7075 Target and, um, how long might that take? And on the customer side, you guys talked about kind of the lowest days ever. Perhaps, if you could, I know this isn't a perfect science, but if you could talk about a range and obviously, we're at the bottom of the range but you're uh, your expectations for for customer replenishment as well over the next few quarters.

Uh, yeah. So the egg crust isn't that. Uh, so quick answer customer side, you know, I'd say any excess inventory effects at end customers are effectively gone. Now I I think we can say that, uh, with confidence and, you know, we're we're, you know, now operated with the market again, and those inventory effects are gone. So that's an important Milestone. And that's been something that, you know, we've been dealing with for a pretty long time as part of the cycle. So that's 1, um, I think 2 on the Disney side, you know, we've been running on the the lower end of our DSi, you know, closer to 50 with a target of, you know, 70 to 75 days and a goal of working that up, each quarter if we can, uh, you know, on average around 5 days and this 4

We went up around 10, uh, and it's important, you know, we saw strong POS growth, but we did make progress on, you know, those 5 days we wanted to make. And in addition to that, we had another 5 days that was around strategic, stalking agreement with a customer in anticipation of their rank.

So that the combination of those is how we got to the, uh, 10 days moving forward. We're going to keep trying to push around 5 days until we get to our Target. Uh, you know that hasn't been linear, it's been lumpy. So, you know, I I wouldn't expect, uh, it's perfect each quarter, but that's our goal. And, and we're continuing to push in that direction and we'll get there over the coming quarters.

Being too specific. Maybe broad Strokes.

Uh, for next year for 26. How you guys see that setting up? I guess, starting in March. Uh, I think you guys are you. You seasonally Buck, uh, some of the other guys that are down in March, um, uh, perhaps if you could give us the setup for that year and which products, uh, are you kind of most excited about or do you think are going to carry growth? Uh, the, the, the best through 26.

Okay, sure. So, you know, obviously, we're not we're not calling 26 and I I think it's a, a difficult time to call the the broad Market or, or macro with the uncertainty that's out there. But what we can say with confidence is just like this year. I think this year, you know, full year with this guy for Q4 Chris will be at around 34%, uh, year-over-year for 25 versus 24 which I think is, is really strong. And, you know, at the same time, we've seen really good progress on gross, margin and DPS. Uh, next year, no, not calling the market, but whatever. The market ends up being, we see a path to doing better than the market and taking a continued market share. And as Dean was indicating, you know, we see, you know, strong gross margin in there as well, and a solid DPS progress over that time frame, in terms of what's driving? That it it's the same stuff. So we've been talking

About the strength of Series 2 and increasing strength of Series 3 mixing in and, you know, we have our metering space, that's continuing to drive, strength, ESL and CGM. We like what we see in each of those areas. We also shared that we're seeing increasing strength in asset tracking as uh, you know, a category that'll mix into our growth over time. And I'd also add 1 other, uh, to kind of Tailwind is, you know, we've been talking about matter for a long time. I think next year, you're going to start to see matter Revenue Feathering in as well. Which, you know, all of these serve as the foundation for continued growth for the years beyond that. So we're excited for 2026 and and maybe, you know, easy takeaway

We have a positive bias right now. All things considered.

Excellent. Thanks Matt.

Thank you.

And our next question comes from Kodiak, Cree of The Benchmark company. Your line is open.

Hey guys, thanks for taking my questions and congrats on the great numbers. Um, Danny if you can maybe talk a bit about uh, the gross margin incremental, uh, for Q4. Um, even with the 1 time and I, you know, I just the the sequential bump is much more than I would think. Uh just normal uh mix shift would uh, would entail. So can you just talk about the details of the driver sequentially?

Yeah, Cody, there is with within the mix. There are a couple of specific parts that you know, have you know, much better margins than the rest of the profile, which, which is actually, you know, incrementing it up. Um, we don't want to get into too much detail on which specific part that is, uh, that way we, you know, customers don't get upset at us. Uh, that might be buying that the other element that, you know, we've also returned back into is above 70% of your distribution. Uh, is coming. Our sales we just ended Q3 at 74.

Uh that continues to sort of move margin up, but I would say within the mix probably there's a couple specific parts, that's driving it, you know, incrementally higher uh throughout the year just sort of as as a macro trend for the last, you know, kind of 4 quarters or so, industrial has been performing extremely well for the company. Uh, that tends to come a little bit better growth margins for us as well, and that's sort of been kind of the yearly March, as we've gone forward these last 4 quarters

Uh, and so hopefully that that helps give you a little bit more color coding.

Uh sure, thanks for that. And then I guess, just any directional uh color on your different segments home and life in Inc.

Um, this 1 we you've gotten this wrong a couple of times so I hesitate to give you sort of a formal guide uh look you know I will say it the way I said it last quarter which is a knowing know you know real differences probably we're looking at a similar mix sort of quarter on quarter.

Only hesitation.

Great. Thanks for asking, congrats.

Yeah, thank you. Thank you.

And our next question comes from Tripp Smith of barklay. Your line is open.

Hey guys, this is uh, Kyle Blue seen on for Tom Ali. I wanted to dig into the gross margin commentary, a little bit more. I was just kind of curious like what has changed since the analyst day like as the product, mix surprised you at all. And then when you're talking about it, being stable for the next few quarters and coming back down, is that again on the mix side, or is there anything to do with pricing just cut off your thoughts there?

Yeah, it's nothing's really changed Kyle. Just just to give you a little context from analyst day. You know, that's intended to be our. Our long-term sort of sustainable range that we think we run in and that's 56 to 58. Uh, throughout the year, we've been pressing into that range and then at the high end of that range is where we landed at the end of the September quarter.

Uh, now, you know, piercing above 60%, sort of, you know, mid of our guide at 63, that's really a relatively short-term phenomenon. I would probably see that for the next few quarters and, you know, Cody Aspen his question on on sort of specific product mix that's specific product. Mix probably is not a long-term multi-year sort of sustainable mix. I do think uh, as we come up into the 60s, it takes a few quarters but we'll gradually.

Start moving back toward kind of the the stated long-term range. Uh but at least from what we can tell right now, that's not a fast moving back down. I think it's a a fairly gradual movement back down

So I wouldn't say anything's really changed other than you know a couple of products specific things that have have done better and of course you know, I also gave Cody some additional color on Industrial throughout the years done better as well distribution. We're making progress. So all those things sort of help

Uh, so hope hope that's uh answers your question. Kyle.

Okay, that's helpful. And then just for my follow-up. Can you kind of give an update on how the series 3 roll out, is going either in, like expected percent of the mix and then just overall as that kind of ramps into your product, before, you know how we should think about overall pricing trends,

Uh, yeah sure. This is Matt I'll I'll take that. Uh, so uh the easy setup to, to remember is, you know, Series 2. Uh you know we've stated you know even at our analyst day, we have not even ramped uh you know, we've ramped a small portion of what we've won there in the current platform and we're still winning in series 2. So, you know, Series, 2, we're looking at, you know, many years of growth before we see that peaking and, you know, as a, I think data point or Testament to that, you know, we just announced the partnership with global Founders to bring Series 2 to the US, uh, as a US.

Manufacturing option uh because you know given the life we see there uh that's going to be needed. So

Series 2, think of that. As Ultra successful, the facto standard in the market today, as we see it, then bring in series 3, which our expectation based on what we've done, there will be even more impactful than Series 2. Um, you know, it's early days. We're just ramping our our first product and we're going to start, you're going to start seeing a series of products come up and increasing acceleration. Uh, so each year more products coming off of that base platform and IP and it will start Feathering into our design wins and revenue over time. But just like Series 2, these things take time. So I wouldn't over-index on the revenue impact, you know, this year, next year. I think you're looking after that before, you know, material impact come. But why that matters is it. It's all about setting ourselves up for the future. And Series 3 is set up for the future just like Series 2 was, and that's why it's so successful now.

Uh, and that that's important because, you know, I can say here, you know, and I'm proud of this. We have the largest opportunity funnel as a company we've ever had, because of now the combined strength of these 2 platforms, and remember their software compatible which is an awesome strength and we're on track to record design wins once again. So

The combination of all those things. Really sets us up good for the next few years and Beyond. And, and we're excited and proud of that. Uh, and you know, that's why I think we can say. We have a, a positive bias sitting here today.

All right, thank you guys.

Thank you.

Hey guys. Congratulations on the nice. Uh uh Outlook special on the margin side. Wanted to just come back to the active asset tracking. Matt that you talked about in the prepared, comments sounds like it could be a you know, pretty meaningful opportunity. Um you know in the past you guys have talked about CGM. Smart Meters, ESL is 3 of your more, you know, company specific product Rams, that that can drive outsized growth wondering, you know, would you start thinking about active asset tracking is is maybe a fourth company, specific driver, or would you not put it in in the same sort of magnitude as the other 3 that you've previously talked about?

So you know we're being uh in intentional and and deliberate Quinn about introducing this uh as a concept and that means we believe that has a lot of growth potential as an End Market. And we believe that we have a lot of potential for strength in that market. We don't want to be talking to you all about a space. That's not growing, long term and we don't have a very strong position, so we think it has that potential. That being said, it's early days. We're just introducing it, uh, as, as a, you know, concept for y'all. But it does have that recipe and we do see in an acceleration in our engagement and position in that space. Uh, you know what we have as a company, is very attractive to customers just a great fit for us in terms of what we can do in technology. Uh, we're the largest company,

In the space, that's our something, our customers want to see. And we have the ability to turn products really quick to address the needs of this this Marketplace. So, yeah, it has potential, and we're excited about it, you know, don't want to over-index on it. It it's early but I think over time it has really exciting potential.

It matches maybe a quick follow up there was that the, the Bluetooth 6, I think it's Channel sounding technology. That That's the basis for that active asset tracking or is it another wireless technology? Uh, yeah. Billy was, uh, channeling is and can be used in those applications. And is interesting to a lot of those customers because not only can, uh, they kind of figure out where the the things are. But they can figure out where they are relative to each other which is really important in some applications. So that that is 1 of the things that is driving interest.

Okay, great. And then the follow-up question, just uh, you know I think in the past you you thought the CGM, you know, could get to 10% of Revenue by Q4 of 25 to the second quarter of 2026. Is that timeline still sort of uh, in the cards for the uh, continuous glucose monitors. So the, the last thing I remember is us us believing, there's a path of being 10%, the first half of next year and we still see that path.

Perfect. Okay. Thank you very much.

Thanks Quinn. Thank you.

And our next question comes from Joe Moore of Morgan Stanley. Your line is open.

Great, thank you. Um and congrats on the good margin performance here. Um, I wonder if you could talk about uh

Sort of inorganic opportunities at the analyst day. You said that you were open to that. Is that still something that you're contemplating? It's like you know you have a lot of organic growth here. Just how are you thinking about m&a opportunities?

Yeah, Joe if you recall the analyst day we said you know we are open to m&a you know opportunities but we have a pretty tight filter uh and I think that hasn't changed which means you know we're looking for things that can help accelerate our growth level uh which which is a tough filter to Define these days, sort of, you know, with the Silicon Labs just posting a 34%, you know, year on year. Um, you know, and that growth doesn't look like it's changing anytime soon.

Uh, we also don't want to add on technology or end markets that are not in our wheelhouse, so it has to be in our wheelhouse with creativity to our growth. Uh, which really means that there are not a whole lot of assets that are going to fit that stage. We also have a lot of the technology that we need. Uh, and so while we're open, I think the reality would end up meaning is M&A is probably.

Um something we're open to but the more likely is to flow that excess cash flow back in terms of buyback, I think what the increasing profitability that we see now and as gross margins sort of keep going up and our operating expenses are starting to be held flat. You know, that looks like increasing excess cash flow and that's likely to lead us more down the path of BuyBacks. You know, going forward just giving that tight uh you know narrow lens on m&a.

You know, I guess just do you have conversations about some of the geopolitics of the situation and, you know, I, I just, I know you're not impacted by stuff like an Xperia, but it seems like that's creating lying down situations. Like the, the customer sort of feel like, okay. Given these geopolitical uncertainties, I need to hold more inventory or just, you know, I I don't think we've seen a lot of activity, and I'm a little surprised that we haven't

Yeah, we're we're not seeing uh, customers building inventory around this, in fact, broadly, it's it's come down not up so and we were watching that very closely. Um, I do think that the uncertainty Joe is just not helping anything. Uh, and and I think that's that's worth saying that, you know, when you talk to customers, they're trying to navigate all this and and they don't have as much Clarity and visibility as they'd like. So um, I do think that that weighs on their, you know, the way they talk about the future um but big picture, we're not seeing inventory builds around this. Uh you know, there might be a pocket here and there but broadly it's going the other way.

Great. Thank you.

Thank you.

And our next question comes from Peter ping of JP Morgan. Your line is open.

Hey guys, thanks for taking my question. Just to follow up to that point. So you guys are above 200 million dollars in Revenue levels and your and customers inventors are decreasing. Do you still do you believe you're still kind of under shipping to and and demand? And and if so you know how much

No, we we don't Peter, uh, we we think we're, you know, there's aligned with consumption is end, consumption? Is, is we've been in a very long time.

Got it, okay? And then my follow is just um on your Wi-Fi can you probably share some, you know, updates on that and and and some program ramps and and maybe you know, how are you thinking about that to decorate over the next, you know, year or 2?

Uh, great, uh, thank you for asking. I should have mentioned that more proactively. Uh, so you know, Wi-Fi this year, uh, you know, strong growth. I I can't remember the exact numbers by 30 to 40%, uh, you're on year. Uh, that's an area that, you know, is our newest of our 4 major technology cornerstones and it's, uh, growing in winning share. And we have our existing products out there. But also, you know, we, we started hinting and teasing as part of our

Series 3 platform. You're going to see a lot more from us in Wi-Fi and that's coming, uh, soon. So I think the combination of that sets us up really well for simply set, you know, relatively small compared to our other areas but accelerated growth and, you know, maybe easy framing right now. Bl's, our fastest growing Wi-Fi is our second fastest growing. Uh, even though we have leadership positions in the other 2 areas 154. And uh,

Be, yeah, that sorry. I just lost my train of thought guys, uh, 154 and, uh, sub gig. So, 54 sub gig leadership positions, strong growth. But the new areas, the newest areas for us are the fastest growing and we're making really fast progress there. So you know, easy way to frame it big funnel for Wi-Fi. Strong design, and momentum should set us up for continued growth and share gains and Wi-Fi for a long time to come, but it is still our smallest of the 4 areas.

Thank you.

Thank you. I will now hand the call back to Giovanni patellae.

Thank you DD. And thank you all for joining this morning and for your interest in the company.

Before concluding today's call, I would like to announce our upcoming participation in RBC Capital markets, global technology, internet media, and Telecommunications conference on November 19th, in New York City.

This now concludes today's call. Thank you.

this concludes today's conference call, thank you for participating and you may now disconnect