AVGO - Earnings call transcript Q1 2019

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Operator

Good day, ladies and gentlemen. Welcome to Broadcom Inc.'s First Quarter Fiscal Year 2019 Financial Results Conference Call. At this time, for opening remarks and introductions, I would like to turn the call over to Beatrice Russotto, Director of Investor Relations of Broadcom Inc. Please, go ahead ma'am.

Beatrice Russotto

Thank you, operator, and good afternoon, everyone.

Hock Officer and of are Krause, and today Financial Chief Broadcom. me Tan, CEO; President Tom Joining After the for market release of and closed year today, Broadcom tables fiscal our distributed describing financial performance XXXX. the quarter financial first a press

will available you one broadcast not the be information of recording live also of website and copy, section week. conference This be obtain at the a If you Broadcom.com. Broadcom.com. the a via call in may for Investors did website Broadcom's receive our It telephone from playback Investors is archived will being section at

During this first business will quarter Tom comments and for the our XXXX environment. be year XXXX prepared the guidance results, section call, Hock regarding fiscal of fiscal of providing details year and commentary

of risk after prepared SEC cause our that end on recent will to refer this and specific questions call. the our filings results the release differ with Please the factors made We press on take materially statements comments. today from for to forward-looking could actual information our our the

made to will U.S. press addition non-GAAP included certain a on in measures measures reconciliation Broadcom table results. and basis. reporting, primarily A the refer attached In to financial non-GAAP between Comments is call reports release. GAAP GAAP during financial to today's non-GAAP today's our

I'll the that, call turn with So over to Hock.

Hock Tan

today. Bea, you, us everyone thank and joining Thank for you

extremely good compared a fiscal strong an another in our year XXXX, revenues, of delivered to strong had of start same to The flow. cash the earnings quarter quarter we period first model So business growing strength fiscal free ago. X% our and sustained a

and down underperformed somewhat. storage our business helped semiconductor us Our business surprisingly, well. Not our wireless was business sharply relatively

more than grew our were challenges year-over-year. business, mitigated which by these However, mitigated double digits networking --

the has quarter. addition, business we to to stabilize and the very broadband started recover in see that were pleased In

in the you semiconductor wireless. actually the expected all it up decline if quarter, segment sharp exclude in the In first fact, was putting together, year-over-year

and a enterprise Turning to onto delivered switching, environment. robust very The top mainframe infrastructure. which is revenue Broadcom the exceed benefiting integration CA line we very enterprise target laid includes to SAN are profitability the and if spending that meet, -- long-term This out business the long in confident software from platform you we well solid results, term and for underway we can of year. not, last that CA exceed

In have business a from environment, they that fact, are been Many commitments this commented especially demand our we have renewals of CA will to quarter of customers softening believe seeing the core past out strong peers and continue grow. dollar in our our China.

are we have we same much in experiencing guidance when provided While the XXXX backdrop of last dynamics, quarter. fiscal we this macroeconomic demand factored

a and resume on of the Infrastructure networking, to Having a the start fiscal will that, hand, in semiconductor fiscal driven to semiconductor This are expect wireless As looking in we almost quarter, by sustain is entirely billion. a to year. very to the be strong will our business solid result, we the $XX.X revenue we the reaffirming are in after wireless. XXXX in seasonal guidance drop our But year, bottom said second meaningful by cycles coupled confident broadband. business second half, that throughout driven other expected software, both product growth. with recovery the

headwinds. as managing semiconductor is decline industry the So effectively in in and are broader strategy wireless summary, our the diversification we well in working as

you to me provide let turn QX. to color Now, with Tom in over more

Tom Krause

million count. of from ago. in diluted billion, average Consolidated Hock. first a ago a you, weighted X% year was quarter from a fully an came increase EPS the a at Thank $X.XX, share And for year X% revenue off net $XXX $X.X increase

was our $X.X year-over-year. actually cash I addition, But would flow was in XX% free basis. semiconductor represented slightly segment as highlight, of total and This revenue. explained, The grew of the In XX% billion cash revenue segment year-over-year XX% free billion or Hock revenue XX% $X.XX quarter. the comparable Semiconductor flow was Solutions wireless. down up a was on first year-on-year this quarter, excluding

now Revenue was revenue. XX% to continues good And our segment. $X.X well. to is perform software as mentioned of Infrastructure start. me billion Let Software represented Hock enterprise turn mainframe extremely to switching and a SAN off

Similarly, net detail operations were expenses performance. Let income was revenue. me represented continuing $X.XX net XX.X% on Operating EBITDA now provide $X.XX billion XX.X% increased of was receivables $XXX million from billion from This is even to billion. prior liabilities excludes due due excluding acquisition. $X.X $XXX and billion, million Operating current Total of additional million which down, typical $XX financial actually revenue. $X.XX the for CA. Adjusted CA semiconductor and QX, represented our figure debt to overall decreased Inventory were depreciation. receivables increased quarter. of though the

in debt QX. However, than annual meaningfully payment excluding due excluding CA the decreased more liabilities total our of current receivables, to bonus performance primarily

we on expenditures. capital addition, million spent $XX In

operations million free in In our We in typically seasonally billion and stockholders accrued And accrue QX record for $XXX we the employees. we operations to $X.X expenses we returned $X.XX QX, QX million the million outstanding. million in cash fiscal prior of One, I of of XXX we we $X.X to billion, consisting would form which represents $XXX ended $XXX things. fully As revenue. that, a $XX.X the for of bonuses diluted of the in I also billion XXXX. XX% fiscal million quarter to shares, free dividends payment in cash, couple a to shares elimination QX is flow quarter. the note of flow the shares. the AVGO had In of cash billion make APB cash outstanding billion cash billion of result, performance our repurchase XXX weakest annual due from compared with debt, quarter cash throughout that $X.X quarter, and or growth that total million and includes $XX.X integration flow restructuring to note QX, from second, our cash approximately This bonus of paid year. at XX% employees we would $X.X of payments

$XXX guidance, generate $X.XX and as Turning fiscal from is expected debt our expected expected Hock to rate XX%. a infrastructure guidance be approximately billion do We amount not CapEx of basis, billion solutions be billion any tax pay billion. approximately down $XX.X forecasted expected contemplate Depreciation million. to as to approximately is be On billion. licensing XX%. fiscal flow be And be result to cash $XX our revenue year is finally, compensation are operations approximately a approximately to billion. be continuing $XXX free is expected IP from expense $X revenue. software. are be $XX.X XXXX. and million. we of to to to is from is approximately full-year expense stock-based reaffirming expected semiconductor approximately approximately The including not approximately margins material year a in discussed approximately Net XXXX to non-GAAP interest expected And operating other $X is

last seven quarter, approximately part of performance granted restricted we next we will XX grant over and of million the the stock vest that years. As outlined multi-year units as

for million purposes, XXX QX. in for in the million. expect result purposes, count Similarly, modeling expense would the quarter approximately to diluted we stock-based stock share repurchases. As be expect second This to would approximately a excludes $XXX compensation any fully we modeling be

at count unchanged out to would expect forward excluding any Looking the start we compensation expect relatively to in approximately remain and to billion in the compensation of quarterly stock-based share stock the QX, level second quarter. repurchases XXXX eliminations decrease would slightly and half XXXX. each to beyond stock-based We $X.X

capital allocation. onto Now

plan maintain the fiscal throughout pay Our in over capital allocation to $X we strategy subject dividends the current Board per plan which We out billion of approval, cash quarterly remains $X.XX to means payout dividend the same. quarterly in XXXX. year, to share

addition, That of eliminating buying remain to In billion concludes remarks. prepared $X fiscal of back stock total we my XXXX. in committed a and

call, portion limit analysts Q&A call questions. yourselves to please we open-up so question today's one the the each, can for many as please During Operator, possible. accommodate as of

Operator

Harlan [Operator comes Instructions] question Our you. with Thank JPMorgan. first from Sur

Harlan Sur

momentum your platform the since second congratulations center your [ph] acceleration year. Tomahawk strong on double-digits been switching afternoon year-over-year half new in] Good execution. quarterly now [came Hock compute the the you've segment data last solid of shipping on X in and network

I guys. Amazon hearing to from going is to things XXX. for the transition of it using good We're hear cloud Google's all XXX-gig. We Baidu, think Tencent and

as ASIC acceleration compute continued the double-digits for networking ramping big here cloud here fairly well. pipeline Question for some strong? the you're of year as guys appears business you do into growth the full Additionally, the year-over-year anticipate is, of

Hock Tan

switch has is got good to it's But Tomahawk listening barely X Harlan. centers. production question, you, top started going. the than in data me terabit And Very just let's centers. which you rack and that networking the XX.X of talk data broader really shipments. just Yes,

of XXX gig fully the do we in with ramp we -- expect just really broader now. about of fact Tomahawk part X are In start the to scale-out data as so right center expecting speak connect to the pipes

QX the you cloud the minimize and congestion cloud and more names centers of simply pipes to in centers, capacity these of centers large rest on were huge is way and because control [ph] year our of -- as the more expand this fact, and simplest data to you know as data mitigate expanding end data type into or QX decongest -- and in up tech. In the progressing upgrade to of fiscal [jumps the the and mentioning in]

So mentioned us, gig. broad area taken, just top which multiple is very X gigabit optic very approach the are engaged upgrading real dedicated volumes. And cloud we which are very order supporting multiple at data much we also to fact we One that That's you center products to the are believe, interconnect, data the in there's obviously data brings centers is And that then in Tomahawk XXX data being the can't the by in is content high-tech built in need quarter obvious, center OEMs the a guys also perhaps we sector as pipes, very fiber so shipping, area. as And -- significant this refreshing on are realm. in. to of second with among a that have DCI guys. And coherent you that of center these per resist are expand well. rack this optic in as not is the and switch lead very coherent, for connection but that and you that run throughput which area called fiber who cloud is you is starting to What's engaged need interconnect I connect deeply what saying in XXX interconnectivity.

Jericho ramping that And it our networking. we are in than double-digit and are router see probably in we generation product lives In our to So service that that's growth routing, call cycles the into are these happening. extends preparation guys. telecom going are year. the QX product continuing of among new And routing, starting Edge especially seeing X, of be routing And impetus more of going their in the fiscal launching to providers that. we're

of about level yes, been So feel to ability we growth the the good we networking have very sustain and seeing.

Harlan Sur

Hock. you, Thank

Operator

Thank you.

Ross next Bank. Our with Deutsche from question comes Seymore

Ross Seymore

echo And said think driving you segment? you would will guys. wired space cycle the congratulations. the Hock that Sticking be and called the stabilized to mentioned Hi that Wanted about helpful? my Can in be cycles geographic I product a little had category, demand the color you that talk color, bit broadband on recovered. any formally product --

Hock Tan

is part of the thing cable the enterprise the big across more seeing Sure. multiple delivery, big We've whether of service Wi-Fi, start generation lead attach is recovery happy broadband. I'm Among finally, seeing Ross. having also What Wi-Fi in X X.X are it telecoms, Wi-Fi DOCSIS in in carriers, say that a that In Sure. modem we're they this of DOCSIS year believe that's year, gateway to service X.X. recovered. good. and call as -- too of now many or whole they need in go we're adoption of towards And half most service And video digital the driving wired and line, that part of in so as a and or our fiscal but broadband is carriers we're is which seeing very, And of some is a G.fast pleased Yes. interesting cable implementations what that very providers to course those we looking be seeing productized we is we access, cycle recovery of in the seen the are gateways, or seeing but and X.X, will broadband it's modem half of what throughput but to very developed those next-generation a the we're on of -- perfectly the Wi-Fi. that see only to to providers, we more nice subscriber as go XXb and happen, DOCSIS it's and what last as will enterprises both capacity calendar. But wireless to of that providers. households, DSL, business. And the suite equally back the X much second -- shipping in especially they're digital is very mile gateways. the address we Europe, expand a connectivity subscriber note through and products product And line the next-generation basically forward that very calling American in into and push call all what we're also also North to of carriers. seeing they what's newer lot

Ross Seymore

Thank you.

Operator

you. Thank

Our question from with comes Arcuri Timothy next UBS.

Timothy Arcuri

I'm Huawei. a And may that kind And they customer evidence handicap right they're of ordering believe hearing Hock I we're of you. you how sanctions. that mid-single-digit impossible wondering be lot Thank double now.

that you. So, handicap I'm wondering that of and you how you guidance. for full-year how the Thank think

Hock Tan

overhanging that so. we you which know. continue and China. companies global and what's don't and overhand much I But basically on like publicly high-tech obviously available issues closely do in as a I -- and the about. the But things and that terms broadly China are specific specific very as something helps know probably are it and of as in export not to what's I and They're customer I'm concerned to of monitoring in products is hope competitive concerns products as you're sponsor, far the mentioning, simply from certainly, Huawei available market Chinese good do because they their they buy comment a seriously -- the able

Timothy Arcuri

Thanks so much. Hock. Okay

Operator

Thank you.

with of Arya Our America. next Vivek question comes Bank from

Vivek Arya

throughout Actually question NVIDIA taking how before. on suggests consolidation profit margins $X $X just you the you. mentioned there acquiring how isn't, if for if you software about Thanks annualized curious shouldn't semis that than than you That question. some has sustain my We're is believe had? case, And had think clarification you Hock to on then there environment I the what in there the a closer could if rather quick a question. I year. the million million And an think, been Broadcom. impact in Mellanox. -- the at think more you even is -- Thank all, just And M&A semis?

Hock Tan

Okay.

questions two clever. very You got here,

with space. easier. and acquisitions. important. we a terms the behavior area continue me to it's And let very we still look and say And last try at obviously strong also tall you space simply thoughtful to us. in start second as -- the broader We done do we for to to observed measured several because tend semiconductor to not over while one. it's interested obviously targets know very acquisitions appliances something towards limiting be semiconductor as but -- be ourselves We'll time timely how look we're mean semiconductor and Brocade in of software, is would the of and Let necessarily of years. that's it's to have approach -- we be continue of a on bit And It's because continue in those be in the we'll it I assets me terms quite considered. very answer I in the we have and in -- area And technology, that. pace a our

of And right well. that the going notice we very, In to of we any integrate it with get CA. out critical very make the generate doing down right on model of as what fact we're drive CA numbers And that's thick kind in to in you expect it's as we're now. it can we we we are through acquisition business the

is be turning you deal core a distributed Turning customers who Yes, we'll and they for as one those as been our business you at extremely of focusing about and And actually -- differentiated -- mean the quarter out mainframes we customers successful. been renewals, It's opposed those more model seeing have onto But it's our customers, is long get CA recall, and extremely business months. our least quarter now has tail than non-core enterprise get nice today for has in only growth core of that's we large both expectations. to one us. renewals model dollars are and customers footprint asked question considers much feel our of of are as through to the pretty adoption the which customers. leads smaller three software. on gone to -- after surpassing tall we selling, very see double-digits. We of very, between of that going very through We next I customers software that -- expansion software. core

So, software. still announcement makes and model But PLA we these or on made been that core it's two above well-received an And new done enterprise-based we'll mainframe least expand. And are on sense have have in continue customers. as have and also our maybe marketplace much very by early to so that we're at we that. something hopeful the we push we'll stage our one deals

significant We the of expect see transactions move year, forward occurring the to more as right? these more all and of toward rest we

Operator

you. Thank

with question from next Pitzer John Credit Suisse. Our comes

John Pitzer

And are be be a how some wireless. to your to it on on or prior units job ask like meaningfully thinking think how I'd I I'll pretty the afternoon, congratulations you're above specific product that. this growth views letting did year and of Good of be some Hock, of imply broadband that Yeah. echo the wireless results. how or business. access questions question. throughout versus that on seasonal the and the many center me of I could half relative on thinking good curious about cycles data dependency some bottoms-up guide, the get year should within content the the semi-peers, does guys. your driving Thanks helpful this my if the for your semi-solutions you and on on-half it'd year progresses we full-year

Hock Tan

wireless that And that was that somehow know Somehow did I you up actually I in knew is see the cycle guidance I -- product to in on that's our our if segment seasonal, truly QX -- we is all come the very one It's bounce-back, our see because going something and to someway very will. because that. a of we Yes, in some QX-QX this that to FBAR double-digit half fiscal that, And this in know. significant very that year someplace. starting it's not so one views is longer you meaningful mine business. products. already which it's simple. that It wait fiscal And happen, in pointed has out correctly happen see We're our our semiconductor second will for shop full -- mind better and going of somewhat of will which in predictable. of product we'll cycle this XXXX. our it's production our of confidence growth

questions, that earlier double-digit have part of networking, in As a center to I especially slew mentioned now growth. product we a cycles of big generate new will whole answer data

coming I'd say happens versus not as year gateways is you'll increase. in things. that that's X. providers. access going this In in secondly, difference get I've XXXX is before. Example X and is between to year-after-year Wi-Fi share. enterprise view particular mentioned year we're our So just mention. the fast. Wi-Fi, content I see in simply to do better service always will It this And two XXXX wireless. probably One, happening in perhaps Wi-Fi

next-generation We continue generation, world proliferate I bar it in in amount are basically continues of new of -- to the seeing content to as wireless and in Wi-Fi the constantly ad that see XXX.XXax amount the the increase handsets the this in increase strong bands phone. drives content X, areas expand that we of call as various bands

perhaps So drive is a going all with increased products. content to our bounce that for back

as as and probably there's it's increase. As you be? volume are, -- would a But you it of is yes lot of as mitigating concerned, volume will the I factors much content far regardless is biggest like be uncertain part pure how the

John Pitzer

That’s helpful. lot. Thanks a

Operator

Thank you.

Bernstein Our next from question with Research. comes Stacy Rasgon

Stacy Rasgon

Thanks question. Hi, my for guys. taking

mean, semi also the implies So your understanding to confidence like as software we I the through has ramp, decelerate business on seems go the it the pretty infrastructure guidance materially in about year. billion must CA that now you talking right was business the that rate run close years have been were pretty out. a annualized few hitting $X.X already to the QX, And

And of order guess have we of rest I strength provided? why CA in drove So markedly year that you've business the into decelerate QX? does -- to decelerate the that guidance as the like so fit the go what to through in

Tom Krause

Stacy, it's Tom.

into quarter between element go. and CA quarters one first we're to It's details think want three gate. the approach. don't is taking I just get the We've we to switching, conservative out a of got but the SAN

ability As into pleasantly going a PLA that Hock number our we see by wins. pipeline. to success terms and these growing the dollars of our And of be the accounts actually we good. of far to so surprised of those of convert in mentioned are driven the with But lot opportunities each is in pretty ELA so

quarter the I time. operating profit for top-line. on this think cash comfortable well And, now feel going we're reaffirming But feel course, comfortable at one year, forward. quarter with the only the we're very going as take into the that one a flow So guidance we of given to expectations as we

Stacy Rasgon

the But sustain CA would through you of rest the said year.

just does like the to down lot? Or conservatism number. that that So overall it has mean in like that's come a Brocade is

Tom Krause

that the we throughout business. That's approach the we sustain our software, to are continue the software the No. a is what infrastructure would taking but said expectation, year. segment relative the outlook Stacy, overall to conservative for

Stacy Rasgon

X? wouldn't sustains X.X the year be you it instead if of at But for

Tom Krause

to out. that leave to figure you I'll Stacy

Stacy Rasgon

guys. you, Thank Okay.

Tom Krause

you. Thank

Operator

you. Thank

comes Hari from Toshiya question Sachs. Goldman next with Our

Toshiya Hari

is Based of uplift I taking as business. preliminary on XG you inserted a Thank when move of your going are business XG -- you a it you. is XXXX timing your is sort it do needle? forward? you with a question. beyond? Or what And perspective, had question to as it XXXX starts relates XG discussions think wireless Hock, the to in from your more Thank wireless content and dynamic customers, on for expecting the

Hock Tan

It’s good interesting a very question.

uncertainty XXXX. areas of vast But bit you see sense it But a in start will of be asking You're of my it it very here. little is to only a part. small

if in high-end I I XG of big content, impact not a to add that But components, you're the But in to going use think impacts is might be I high. smartphones actually the some better right. will in only think XXXX rate will tax way XXXX. for handsets, want word a see really starts. beyond

more in FBAR you've as this of in as And probably it on analog case in more and here phone attaches the so affects quite the antenna various RS and significant, FBAR. heard those XXXX Beyond of XG for us parts seen be and the comes and not content amount will that, but to content especially other way XXXX. itself

Toshiya Hari

Thank you.

Operator

Thank you.

question comes Stanley. Hettenbach with Craig Our Morgan next from

Craig Hettenbach

Yes. Thank you.

question a for Tom. Just

software the business core seeing margin through the expectations we On in quarter, you're can the semiconductor think just strong for then margin and gross about just upside how the the talk about year? you back of trends and in gross

Tom Krause

of including semiconductor from business. is They're are Mix the the increase to by margins exceptional. Sure A you the a continues that business CA in lot quarter. you're driven over Craig. margin helps. But in all right. Well XX% that The perspective. see gross gross can

the But we've being talked or As wireless longer-term, from comes know down, benefit the the as of semis corporate out above average. this about lot. in think we at rest I portfolio a looking you

see flow into We margins free opportunity operating continue gross translate our the directly improve conversion. and to the to and cash our margins course

see So we continuing. that

Craig Hettenbach

Thanks. it. Got

Operator

Thank you.

next Kumar comes Our with from question Harsh Jaffray. Piper

Harsh Kumar

guys. Hey Yeah.

the trips a congratulations, I stepped margin wanted exceptional results. one really dramatically. follow that field mentioned to the Maybe They execution. On up I to quite for think acquisition hum First up you takes about of produce Tom. it question. gross on and really of all an year had

vast is did CA very CA half back the the Or best is majority capture benefits question So on? and from in of you XQ? the reserved quickly later for

Tom Krause

No.

you as we're of be numbers, quarter able CA. only We're look one the think sort around to not through might still fully I optimized in.

CA. margins, the some But meaningful specifically gross as improvement when it’s at you as seen for of the includes CA a you've within support. to margins number tie well profitability look in primarily business that elements So services company gross

gross on as business. our But have includes a talked and So One as really taken PLAs we we forward. margins better we've some these continue CA with deal our see the we in which to for is P&L investment the improve about, going which to is general. to announced returns particular of HCL in through improving work gross HCL a our actions service going model driving we margins to the opportunity forward continue improve and outsourced lot get our activity to

over but So them this just really we to expect to not the year, would improve continue long-term.

Hock Tan

least that hum. It there. a will to of will to so-call you're year take to go because software closer believe contractual In us companies, But at get If I we add years. on could it through takes longer right. case to transitions. I for two these And are it the commitments continue CA probably

we and reductions. are combining fact not down CA to just said one better. more as software go it these And I deal like -- now software and think hardware operating below through cost just expenses big we're than see goods And infrastructure, other Tom that quarter as sold, is improvement. but software-sized of the transitioning a line part in the

value Wireless delivering to customers, other is our always improvement of life its more is products, I to QX, products. our we those of XX mix. a expand that That the natural and product margin. year its For opportunity expand in by critical a in gross margin very mix, remember basis an adding product around products year to it's XXX our semiconductor and think, along, our by gross And to cadence. lot on semiconductor tailwind are cycles just to points fact is nature humming the have down

Operator

you. Thank

Research. question with comes Edward from Our next Equity Charter Snyder

Edward Snyder

Thanks year. rebound in me a with, second because got units. maybe wireless. normal But to I'm of alone. areas playing content lot. a it's Hock, like a issue to be if flattening we in last this kind but understand got weak is This could going see Correct going the This stronger that wrong, on big I'd sounds much rebound alone. back you've year-over-year you're half like you're three to you've touch we just the if here, out handsets were than year, on and I of just

course, think business Of X.X-gig. I above ball standard which covers your

You're products the competitor, in now, problem's antenna as year, know like cast because XG congestion the the on. not seeing next flexors. you're big we're XXX.XXax antenna got that more Qualcomm comes enterprise, that in I over you getting But that Wi-Fi maybe only doing especially doing acute it you've more much a lead closest but And handsets area over isn't mentioned in your and the here.

should are next is -- this given a on you expect to to one, we expected it see stronger shouldn't bigger content; an than that, just last play otherwise two, rebound legs I know to Wi-Fi itself longer, more have year? being just but deployed units should maybe and issue, beginning So, for it? we'd

Hock Tan

rebound center your a And year, that love is we played comparing be an easier it rebound. relatively it's not all much it's rebound. that Ed, I see down We'd forget over and top My really while increases, very straight last want simply. to normal don't against content by a either. But the down compare. comments, a normal view -- the it's but

a extraordinary see will do good an see definitely not we a this and but -- it and be will rebound. rebound, be not we rebound it's So, --

Just that. emphasize want to

not It's XXXX. year-on-year rebound. fiscal normal your compare last versus be main improvement. Just year hard will second to a that fact against half that, The

Edward Snyder

Okay. Thanks.

Operator

you. Thank

question next comes Aaron from with Fargo. Our Wells Rakers

Aaron Rakers

in know framed But can questions has be you've piece wanted question, year? wireless I'm how and the over for quarters? business, you storage curious quarter. that do asked, if couple I questions things this Thanks of on wired and through storage the I assume on I of focused think Thank the you. much don't kind congratulations kind and on of business. of prior, next of you the A been lot The ask to also that the Yeah. we taking quarter. was as to mentioned, the how up. but business And go this are of in similar course what about

Hock Tan

drive Well, Okay. bag it is storage, a disk of lot know all here. that these And but and mixed no nothing different have drive. bag good hard see In A to a hard lot of yell of relates we not it, very -- the interesting question. to days others. disk over as you it a we from

don't Our mitigating data goes hard all We centers. in our fact most do drive factor sales basically here disk our near-line component in desktops less of hard do PC we is drives, -- disk in that to or or relatively mobile.

of do as we saying. it not industry see obviously being the weak, but impact So, is the as extreme

see cycle PCI especially we Where a coming that's is not Express. but that is in the area. mitigate helps type growth embedded is product that So, new two Flash SSDs on hopefully storage -- fact a it,

year, interesting in over see be of next are and amounts half. the quite Second rest computing, lead the year, the in something over said interesting well, storage learning, the it is We're of in Gen second connectivity. a the But machine marketplace from that PCI you the especially that, and the to this of it's resulting right? next to also related actually pushing -- opportunities of X lot storage what's push All -- we viewpoint Express over see GPU-to-GPU where it we storage is or the -- a half it be offload strong related of in in in X. Gen on push even

Aaron Rakers

Thank you.

Operator

Thank you.

Stein with question comes William next Our SunTrust. from

William Stein

talk Great. particular you Thanks the you business pace there? for aware on region, I'm Thank China to taking that shift you you're that well that the it, in Hock, my be of end relative demand may But if that the geographic through export question. as instead a in big inventories China's basis, at you can markets to a look certainly. can to tell not best there in consumption in seeing one when and region you. economy cut

Hock Tan

that. ship in the weakest to product Europe, I'm the just China We -- And has North demand to regions. also beyond also And view the decent saturation. in the broadly region. products But China regions, It we some other region helps far South a quite know mitigate Across this can shipped weakest. surprise. region see so No America extent in overall used all China. that. indigenously. and impacts sense, what of so an to talking certain the the sectors continues I impact to as We It U.S. our us impact those on be see certain in as sectors to question. all But Good collateral domestic that's in regions it's Japan is couple -- that and and less macroeconomic had

Operator

program. Ladies and This call. as participating you. conclude you well for in as Thank thank question-and-answer gentlemen, session, does today's the today's

have You all and may wonderful day. a disconnect

Broadcom (AVGO) 14 Mar 192019 Q1 Earnings call transcript