Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
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| So that, of course, helps and that enables us to outpace the overall market growth that I suspect that you are seeing and comparing us to |
| And on the back of it, we had a number of strong design wins with Tier 1 OEMs who’s in turn supplied to the data centers |
| Wireless infrastructure had a highlight quarter recording 45% sequential and 41% year-on-year growth, along with strong forward growth momentum |
| So I think we've made good progress there |
| All in all, we've always done the most exciting work in a tough time, which has been our track record |
| We believe that these initiatives will drive future market share gains and further expand silicon content in our proven customer platforms |
| And so we think that we can continue to lower that cost structure and see better gross margins |
| We're excited |
| Due to the highly differentiated performance, power and cost benefits, we expect our WAV700 products to both improve average selling price and drive higher attach rates in our broadband and connectivity businesses |
| Regarding our broadband access market, though demand continues to be soft due to excess channel inventory, we are confident in and excited by the longer term outlook as the multiyear upgrade cycle of infrastructure modernization by both MSOs and telco carriers firmly takes hold |
| We have solid market traction with our industry leading single-chip integrated fiber PON and 10-gigabit processor gateway solution |
| Our PON access revenue increased fourfold in 2022 and we are well positioned for continued share gains in 2023 due to the breadth of our integrated access and connectivity technologies |
| As the industry migrates from legacy DSL and older PON technologies to 10-gigabit PON, we expect to grow our revenues by expanding market share and customer platform silicon content |
| We see strong growth momentum throughout 2023 as 5G wireless backhaul deployments of multiband and hybrid millimeter wave and microwave radios double the silicon content per platform of our modem and RF transceiver products |
| We are very well positioned to benefit from the expanding rollout of E-Band millimeter wave technologies across several large geographies, including India, in conjunction with the proliferation of 5G networks |
| With regards to the burning of the inventory in the data center for these DSPs accelerating our momentum |
| In high speed optical data center interconnect, we are in a leading strategic position and have a strong design win pipeline for our second generation and industry's only 5 nanometer CMOS 400-gig and 800-gig PAM4 production ready silicon |
| We are making good progress with the ongoing qualifications for data center deployments that will ramp production shipments late this year and continue to do so over the next two years |
| Obviously, we've got an exciting competitive positioning relative to strengthening optical data center infrastructure, the 5-nanometer product and in the wireless infrastructure as well |
| We entered 2023 with a strong product portfolio, significant market traction and robust designing activity across all our strategic markets |
| Even as we navigate the ongoing macro demand weakness with extreme fiscal discipline, we are excited by our design win momentum and are strengthening strategic customer and partner relationships, vertically in Wi-Fi, fiber access and wireless and optical data center infrastructure |
| We believe that our platform approach driven by strong technology innovation is enabling us to not only secure new business opportunities but also further expand our silicon content areas where we have proven success |
| So we feel better that we've got a little bit better visibility at this point |
| Our infrastructure end market had strong growth sequentially in Q1 as a result of solid demand and growing market opportunity |
| And so we feel very, very good that we will be in a position to gain some significant market share as 800 gig rolls out |
| We continue to be encouraged by the strong market adoption of our Wi-Fi 6 and 6E access point solutions and the growing pipeline of new and existing customer design wins in both service provider gateways and third party standalone routers |
| So feel really, really good |
| And I feel really good about where we are |
| Meta may have positive remarks right now, they had a good quarter |
| In infrastructure, we are expecting revenue to increase compared with Q1 as demand for our products continues to be strong |
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| Our Q1 revenue of $248.4 million was down 15% sequentially and 6% year-on-year basis |
| However, our broadband access and connectivity businesses were challenged due to excess inventory in the channel along with seasonality in Q1 |
| Total revenue for the first quarter was $248.4 million, down 15% versus Q4 and down 6% year-over-year |
| Broadband revenue was $82 million, down 18% versus Q4 and down 39% year-on-year and was in line with our expectations entering the quarter |
| Lastly, we expect our industrial multimarket revenue to be down quarter-over-quarter |
| Quinn Bolton Obviously, a tough guide for the second quarter, down over 20% sequentially |
| We had some large router shipments in Q4 and those were coming down in Q1 kind of as expected to some degree |
| Connectivity revenue in the quarter was $66 million, down 37% sequentially but up 10% year-on-year |
| Looking at Q2 by end market, we expect broadband and connectivity revenues to be down quarter-over-quarter |
| I mean, we definitely continue to see pressure on the broadband and the connectivity businesses, I mean, our infrastructure business, we think, will be up next quarter and then industrial multimarket is a little more flat to slightly down |
| Some of our Wi-Fi products, for example, we see pricing pressure from time to time there |
| On the gross margin side, I mean, look, there's plenty of uncertainty in the world right now |
| I mean, the bigger issue for us right now that we see is just the inventory in the channel |
| Definitely, I'm sure you and many others have seen some of the slowdowns in some of those key customers |
| I know you had said that, that business was constrained from substrate availability in 2022 |
| Kishore, the high speed optical business, I know it's taken much longer than you would have expected |
| It looks like that could be down, I don't know, 60%, 70% year-over-year |
| So I don't, by any means, feel like we're creating this big inventory glut in Q1 and Q2 |
| Additionally, we will make forward-looking statements relating to the completion of the pending Silicon Motion transaction and anticipated timing These forward-looking statements involve substantial risks and uncertainties, including risks arising our proposed merger with Silicon Motion, including the anticipated timing of the People's Republic of China State Administration for Market Regulation, or SAMR, review; risk related to increased indebtedness competition, the impact of global economic downturn and high inflation; the cyclical nature of the semiconductor industry, our ability to obtain or retain government authorization to export certain of our products or technology; ability to support current level of revenue, including the impacts of excess inventory on our customers; expected demand for certain of our products and the failure to manage our relationships with or negative impacts from third parties |
| But if we see a recession, if we see a major pullback in spending, then yes, that could change the demand levels a little bit |
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