AVGO - Earnings call transcript Q3 2022

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Welcome to Broadcom Inc.’s Third Quarter Fiscal Year 2022 Financial Results Conference Call. At this time, for opening remarks and introductions, I would now like to turn the call over to Ji Yoo, Head, of Investor Relations of Broadcom Inc.

Ji Yoo

Thank you, Sherri, and good afternoon, everyone.

Joining me on today's call are Hock Tan, President and CEO; Kirsten Spears, Chief Financial Officer; and Charlie Kawwas, President, Semiconductor Solutions Group. Broadcom disturbed press release and financial tables after the market close, describing our financial performance for the third quarter of fiscal year of 2022.

receive Investors you at section not information obtain broadcom.com. did the from of you a may copy, the If Broadcom's website replay the Investors This and of the be being is sections for of website. audio accessed through conference can the year webcast one Broadcom's call call an live,

prepared our comments. take from materially Kirsten business risk actual SEC comments, well on after Please today refer for details our to our our call. differ questions quarter specific recent for be as the of environment. press release forward-looking the 'XX factors our and our cause the to the prepared will year that guidance During third statements could filings commentary results, made the with regarding as results We'll Hock this and information on of end providing quarter fiscal the fourth

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

Hock Tan

and feel about go I joining everyone you that -- my screen. what feel in through we Thank for to Ji, somewhat you, with thank here and surreal today. I'm report

consecutive $X.X very year-on-year. software very year-on-year to XX% Let revenue billion, up In me holding. net weak, vantage revenue record been Semiconductor billion from $X.X weak, X% revenue start 'XX, and is grew much solutions increased be by QX saying, to our still while infrastructure consumer in a has IT hardware all grow XX% infrastructure Cloud semiconductor our year-on-year reported spending was consolidated point, Year-on-year, fiscal In contributions spend QX enterprise to billion. by is robust, for to end continued and year-on-year, sixth build-out expected and growth on driven QX, infrastructure data data and campus center markets. $X.X quarter deployments our was accelerate and remained solid business the strong, refreshes. center upgrades. provider be actually to our with service from

Looking year-over-year. in which at to in North very ramp our to and OEM, expect QX, solid was to is continue wireless, to much in large expected the double-digit tied platform. percent we grow it is QX enterprise American as QX, grow new we headphone Meanwhile,

Now, end Starting $X.X let networking. record up revenue a billion XX% provide me year-on-year, and more was color of XX% market. by with representing semiconductor was revenue. our Networking

of and continue Tomahawk, cloud As enterprise increase adoption silicon Trident platforms. they to both refresh, data our Jericho switching centers and

providing expect X Broadcom trends announced monolithic In we the a second single double in in today. Tomahawk to mid-August, market switch the these per available Importantly, of the other any switching switch device, silicon of continue. series, XX.X Ethernet bandwidth terabit capacity

will for Tomahawk, photonics data Networking the We be which also silicon the low with and expect industry's remains announced extend a these and up co-packaged given new benchmark segment to we And in this in our hyperscale centers. drivers. QX, strong, leadership XX% power, year-over-year. first enable innovation

to expect this year-on-year. and and grow And content strong XX% both servers of a revenue and high semiconductor from of We storage of growth primary remained enterprises. to growth connectivity expectations. server storage driver record was connectivity we QX, in deployment generation in the XX% $X.X next XX% or sales, exceeded storage cloud benefited year-on-year continued storage of server about continue. billion anticipate as we actually where service our connectivity Next, A trend our revenue

generation globally, expectations Wi-Fi rates to line the XE. billion deploy by XX% with semiconductor on and of to attach fiber sales. major XX% with steady and our grew to continuing service broadband. in Revenue broadband Moving This home year-on-year, driven of X growth next represented of $X.X was high provider

amazing unlocking in half XXXX. investing in X second above expect to and and home gateways, the experiences to smartphones, in wireless and XX% broadband grow In We are leader we deployments expect access industry occur we the year-on-year. next first across QX, the points enterprise Wi-Fi our generation business

wireless. XX% XX% Sustained demand guidance. moving revenue up of of to line Finally customer in with year-on-year, wireless grow -- to semiconductors. revenue represented billion, and seasonally XX% $X.X revenue be our American drove expect we year-on-year. XX% in QX from next QX, In revenue our North up wireless sequentially

strength QX semiconductor in million Nonetheless, In summary, QX, XX% year-on-year. up industrial revenue revenue year-over-year, XX% to In solution remain reflecting to resales and China, Europe. QX offset by declined industrial $XXX X% weakness resales for QX, we the growth to of semiconductor Finally, forecast in partially was strong year-on-year. year-on-year. U.S. rebound expect high-single-digit continued we at

if look we the QX and Now, largely sequential putting X% QX, as it grow and another in will grew on basis, X%, by QX seasonality wireless. a at perspective, this of driven did

QX, dollar terms, software. infrastructure of expiring and XXX% over rates In revenue grew revenue. for accounts, software total In strategic to contracts, renewal consolidated we Turning billion XXX%. represented XX% and X% of averaged averaged $X.X year-on-year

our cross-selling accounts, these these annual million portfolio include $XXX million strategic Within core bookings customers. to of products $XXX of of

recurring And XX% billion, at up around percentage of software growth X% sustain revenue sequentially. guiding we expect end was XXX%. contracts. trends, Now, from infrastructure maintenance. to consolidated accounts, In or indicator of of ARR ago. we year in these software rates our over XXX% Because year-over-year. XX put subscription actually within X% QX QX the this was summary, we're past XX% $X.X mid-single-digit our of averaged up year-on-year -- revenue of over context, our revenue just And renewal to all the average in months, $X.X average and which a expiring we QX, renewal therefore, and And the forward value represented consolidated strategic billion,

quarter, pending you acquisition brief regulatory Kirsten world. tells our our financial before progress Now, with our a provide making various more filings VMware. performance around for the about update of on We're let good the me

very forward excellent much an as moving expected this have on effort, as regard. are We in and team this focused we

fiscal excited well about remain customer engineering channel We expect in of year and our be to VMware XXXX. world-class We strong acquisition by impressed be continue continue partnerships. as to the transaction completed and talent Broadcom's to the as

for respect what that, tremendous expand complex me with And most accelerate the built. innovation to enable will together, we technology addressing multi-cloud enterprises to in challenges choice era. the call have has And by turn and let We this VMware Kirsten. over

Kirsten Spears

Thank you, Hock.

the was Gross -- XX% billion year the a me year was in our year-on-year. year-on-year, by approximately $X.X XX% ago additional revenue, depreciation. revenue $X.X billion were Operating from performance. this or and from for $X.X up a excludes XXX financial Let driven was provide was detail R&D. were of now Note of from up billion revenue. XX a expenses income for the up on Adjusted basis year-on-year. XX% was year margins $XXX figure up of Revenue points in XX% up X% was investment Operating quarter quarter ago. quarter, margin billion, $X.X ago. XX.X% points that of and million basis EBITDA XX% Operating

mix of our XX% P&L Revenue margins the solutions represented Now, semiconductor year-on-year. our semiconductor in operating the expenses billion two XXX segment $XXX our year-on-year. our XX%. portfolio. and product segment was QX, extensive and driven quarter. revenue X% XX%, $X.X up increased QX million a for in growth year-on-year. up for R&D Gross $XXX segments. Operating quarter, were XX% semiconductor approximately XX% products were million content margins product This solutions year-on-year, up up was by for points in to favorable in total review basis next-generation across was the of

while semiconductor revenue was profit XX%, operating So up grew XX%.

quarter for billion was for software up Revenue $X.X P&L and represented software software infrastructure for infrastructure segment. the Gross to revenue. margins This in was profit expenses million year-on-year. X%. XX% were QX, infrastructure our year-over-year. and margin XX% of operating Moving X% were were grew the in quarter, year-over-year. XX% stable X% and Operating up in was operating software Infrastructure $XXX the

part expenditures. $XX flow $XX.X inventory sales cash to spent to to quarter of the XX% flow. $XXX the on debt, representing short the of prior material ago. $X.X ended of the million ramp. We XX% and quarter and of in of revenue billion Moving expected the higher billion outstanding is XX billion, costs with the year large third Free We gross We a days ended the million term. third third due quarter $XXX capital billion, in from which cash was with $X.X quarter sequential were compared cash in of up Days XX days quarter, end revenue.

and million, Turning allocation. commitment billion employee our quarter, stockholders capital due $X.X to return million XXX paid repurchases for we diluted diluted stock shareholders, expect resulting the taxes The approximately on share in common $XXX million of we to share fourth any in the X.X elimination the of of to which eliminated share In impact XXX Consistent count In dividends. billion excludes we vesting common equity, shares. million. of in with cash repurchased AVGO non-GAAP $X.X the QX, to non-GAAP stock count the quarter. potential in excess be cash QX was completed of

and That have of billion pending We our up remarks. $X.X regulatory of please as shareholders, Based guidance subject to approximately rules. We questions. rules. maintain call open adjusted fourth concludes the is and of under prepared shares for projected return fiscal as for for since trends of my excess quarter we any commitment the including conditions, repurchased our our to revenue. of acquisition on announced consolidated XX% current soon cash revenues SEC of business not repurchases can are VMware EBITDA buybacks, as Operator, to XXXX the we

Operator

go come Our Deutsche Seymore with from Please question ahead. Instructions] [Operator Bank. first Ross will

Ross Seymore

it's on you talking exposure that networking have But some Hock, data I you consumer you seemingly macro myself of you side many started the despite the things. seeing data of is the to points your peers. for, really the points reconcile side. are and even in side everything worsening consumer server, a off infrastructure enterprise changes? your in the macro general, the any businesses for broadband between cloud the fact of versus and disconnect Because limited hard think, Obviously, fine about on preamble investors the are for the

Hock Tan

answer through something end by you. scrub with what and thoughtfully, we and we've about if we to reporting in that way been presenting true That's the analyst is the of been what so before the earnings we in what I eight respect about strength and to users, deliver products backlog this we numbers calls -- the we Well, I it mean, true particularly, infrastructure talking told the carefully scrub I've end the true numbers, and talking minds, is -- we've demand. looking been call say we as in is end as to that And that's mentioning, -- are are today, no. demand. to our the could demand. about we're What is sell-side customers, that no. it's markets end The reported at what and revenues that short our we and quarters, We this you past see to And end products demand myself, far we're as end true can markets. sell those seeing various into is you

at backlog, unchanged have also and we lead XX a Now, continues weeks. time our ton of

that in QX Now, believe But QX, by more be and as rates, reported are somewhat as true and customers. far to we whether demand be and trying we're that what see different of we end clear consumption different psychology pretty to function one perception, true customers thoughts, are we believe bookings a running out. end placed expect our in to about -- it's think of today at year to

Operator

come next our Please from with for question, and moment One the will line ahead. Rasgon Bernstein. of that you. go Stacy Thank

Stacy Rasgon

follow just Hock. guess, wanted up on that, to I I

was So, it actual everybody you're the demand else to that was shipping they would facing, if stronger thinking situation true to like feels demand. But, I than this you guys everybody understand are seem be. that feel true

true you know parse So, guess, I and confidence, actions say think what can it's don't is that to of that could to if square whole what your I be -- that you -- that that us true think customers I you under indeed you about just actually taking? even are guess, gives circle. I actually guess anything, I the confidence orders but to thing get kind you ship don't you what help demand? guess, around you you're else your But, else, everything gaming are within the investors trying possible seeing that can shipping demand? trying what all about statement and

Hock Tan

or been in a have products we hugely And and checks on before doing and now mean, years. aircraft we put I our balances this lot customers. put Well, to of for out trucks two we

terms any our Ross at you about seen products, of change particular that. don't -- and products, no, that? consumption good and we our pretty the can’t we're doing I So, can and earlier products all And talk it. of question beyond see I In obviously asked answered was, have by talk only our

Operator

line Thank America. with you. ahead. our One That of come Please question. Vivek Arya next will go the moment from for of Bank

Vivek Arya

the and conceptually Thank press which indirectly just to exposed wanted by we year then, just to the Hock, rate to of your expect good or of question Broadcom. days. of Hock, that growth any a And China I rate are then the kind you. I wanted is, different mid-single-digit at or handful telco in enterprise ask in versus Company? could ask us for question. of for just slower way, you if you products in maybe clarify use past, the better wanted directly looking been growth any framework as sustainable hyperscaler broad the market, clarify grow would so, you than Is a if growth to described or still a markets next that kind restrictions consumer, the kind that which to or of end to over are last a or out versus I have give

Hock Tan

a occurred days take me question, that of is over regarding been of week of by the care have actions let last China. very not restriction but products question the have first. affected No, second shipments few any That or our interesting notified. on a are we None

expect been we not affected, to And have do We period. be. not

And but you're some it's of compounded than space long-term the rate, what what semiconductor mean eventually. marketing X%. hubris, -- I calls sustainable demand always thereabout, for norm, X%, now that been. degree months. maybe of that that X% has I've that. speculation, revert is growth terms the XX occurred matter in all no has will we the that more believe And in think I the always said, It past still that, a Now, Okay? mid-single-digit over -- I to X%, saying, hubris

at is very it's compounded term short X% depends because obviously, industry, long-term that the experienced rate. this seeing in start interesting I and some the you to In we've it I said could this believe get these than And what cycle clearly not The is norm. what rate all X% cycles when point, because year, we'll we're Now, X%. 'XX in is and have to but up lower growing. to in to the point average you have a back down cycles, on be growth will, at -- the 'XX. And much growth higher that your we

Assuming our QX way We're year-on-year. XX% And that's about forecast, norm. the for talking play. growth X% semiconductor rate around of above to comes us

and some will So, around turn back at yes, things revert point, that norm. to

a of take there. couple may years it I before Now, get

Operator

ahead. that line and One with the moment come for our Sur from question, next Please of JPMorgan. go will Harlan

Harlan Sur

the XX% look Back your ASIC in April, CAGR growing customs has a you been over at in of nice And guys did few past teaching business. the business this years. really

let's And right, like of programs specifically, X billion ASIC transcode. compute still the in then, macro environment, video really customers' this XX just your some the like, say, you track GPU, compute at better strategic $X pipeline nanometers. a on Hock, a your programs offload, hold nature offload year? segment revenues and got nice this in to X SmartNIC then X, to team ASIC And in up programs will You've of got weaker future given over these initiatives, drive Is year? next

Hock Tan

billion. that, hit your there. that We Well, we're yes, and told on for to this track answer question, we're year you to first $X getting

it's really don't emerging, does very know. can't I'd compute business. gravity, that. it's to as and emerging I far a like I this answer defy particular offload believe As

level have case, than as like, may mass critical better our emerging business pull as it appears have it some so, all And that hit to perhaps of are seeing. we in somewhat enterprise, up

on answer. know I it in so, 'XX, our not part 'XX, will actually I'm I wrong three at of speculation 'XX, That And hold years, because the more up some But looking you're next don't regard. calling that than better? 'XX, is in level that mean right? for

it up For sure, hold 'XX, will better.

Operator

Timothy moment UBS. one the with next will question. for ahead. That go And come Arcuri of Please line from our

Timothy Arcuri

if on Hi. number. could us you Hock, the I was semi's update wondering backlog

call, mean, of that bit what's push I seen I a backlog? or Thanks. obviously, year. I was last it's was like. billion on But think than know update backlog I you was any number? Can sort within the you little it But than within probably, that more out? seen a then in that which any it movement the incoming have up. offset $XX cancel us bookings, fluidity also more mean, you And backlog? by that, sounds have customers

Hock Tan

as terms on our not clarify backlog. backlog our points, the are allow our very to Well, first and do of We cancellation clear. couple

-- preceding question. first in We mind, to billion. as quarter backlog to each to end the not seen quarter, our And our have the to sequentially answer our that up. build to compared increased second your backlog continues the at and And on $XX QX revenue part, grow continues of keep

our are still rate. below we booking So. shipping

Operator

And for with from of Please our Stein question. ahead. will line Truist one William moment That next the Securities. go come

William Stein

think at comment revert the we if an part-for-part I forget least can we've or historically, margins. basis. industry, in dynamic like so. and sort time, the I'm that last on how wondering as Hock, mix seeing you're or ASP know a that's over of that changes at X.X-year changed eroding but to sometimes I whether significantly you that been influencing continue

would in contribution the in business. I have that. semi to is pricing You're part playing some think getting such tremendous margins

Hock Tan

couple for a earnings -- the before of isn't. worthwhile it that to repeat. It’s earnings me Actually, I said in previous calls.

material months, the past able been has gone raise up. over XX only because obviously, last -- but have our to cost We prices,

with to talking margin -- our we're not we're dollars, our so absolute sold, XX% staying from percentages, increase -- of neutral. cost so, if XX%. And -- in just just of gross material cost if being raise order term that, it's doing percentage margin expect -- less cost the keeping diluted terms talking the And staying it's than just percentage price in no goods in keep

basically has improve, in margin last of say is to this level in on -- -- what little improvement. the in as well, couple enhances, well spending, degree in And pent-up months, years it's as products -- or enabled the margins last a in the in that impact of is And particularly particular, of our before, would accelerate somewhat and basic our gross margin. said of this of -- that What I I've fundamental cycle. XX call, as has our last and in broadband of new price So, as just enterprise, earnings some adoption cloud next-generation I increases is said -- technology. semiconductor environment very always the it's

generation here, much expands this margin. expands of And increase products not but And what that's case New gross improves, gross price what is adoption been the has per margin. the our accelerated se. pretty

Operator

next Rakers Aaron the from moment with Wells come line for of one go And question, will and that our Fargo. ahead. Please

Aaron Rakers

wireless growth couple this sequential over years, look growth I quarter. if XX% past wanted back sounds It actually of ask XX% about the into rate. sequential to current quarter. this guiding you're above the solid But results solidly the it's last been segment, like I

the thinking your I cycle expansion that, are guess, there? Thank going look we the And demand next-generation how you as with profile content product at forward. So, you. guess, I about opportunity

Hock Tan

It's it wireless I a it replicates never be to quite time matters. now could the of compare the -- like QX in take to business, all there's try and other period snapshot ago, QX when same and itself to going no a it's period year it not any three-month Okay. particular take we clarify, words, and In -- of if on normalization.

is because It consider of difference. of shipments, be it XX%. kind make in same It taken So, takes all it be in XX%. could could slippage ballpark, weeks to could a all changes. being couple a products that of particular And I in even be simply the XX% that

of thinking units any different within from be been when ago a the years you so It's too us or year. the it put year closer And to XX% lift take lift the of I to comes much is two do forward the might -- to dramatically year-on-year, mind, same up might changes. increase -- in But that these have would nothing not not a ago. because volume, see XX% whereas of with might salt months. even in have planned shifted content year give But that behind period, volume if in year-over-year. simply overall ballpark. that ago be terms we quarter three-month some that It year that So, kind period, much it upon on a grain three really not it's a you compare don't

Operator

Please our Harsh next and line come moment with for that will ahead. the Kumar from One of go Sandler. question, Piper

Harsh Kumar

all, of a ask coming for I good companies. of one reported congratulations been market. There's news Hock, by First concerning to such of turbulent reporting guidance, then wanted a very a China out of question. results main very sort and lot a good in quick

all, So, main curious, my first exposure have to sustainability. question, was China? how question then, much And of for a you do it's I of

gross revenues, to about asked margins. I ask wanted Somebody but about

compared other I is which are companies. odd think you've software that sort abnormal XX% margins XX% got then the of in but gross norm, honestly got in semis, You've margins to

keep when think there So, it business that some do up the what drivers of in up are longer that the semi of guys, for you of XXs, think sustainability you you term?

Hock Tan

Okay.

first it's it complex. answer more the second me isn't. since Let But question little a

Our keeps you the I about say semiconductor would by we sustainability, expanding. gross know. still, talk stay it margin, It probably doesn't as way,

were the the in and case more margin. -- technology it's the low-XXs mid-XXs now over or gross XX% Today, we that the And simply business. XX%. If of beauty years you like to back five look ago, semiconductor that's -- it's

you're every XX put storage, much higher and time to new higher products, that's because years, in the every years, of generation you value, delivering you're And new to of you every usually, it's able and creating it's for your you X, switching, have profitability. or X that's from a XX expand generation, this a every and industry. whether value always wireless, more You beauty X whether more extract price are margin, running the generation delivering months, value, -- a

So, keep keep of portfolio expanding. margins our the as we new generations, coming with out

basis -- asked at next-generation now now And XXs. we're years updating almost expansion on, see I changes franchises. you formula gross me products behavioral I rebound, empirically of -- seen see And to -- where next-generation we changes -- XX as physics behind based XX margin to the behind will ask lockdowns, perhaps accelerated in to about any But year-after-year. spending of for based by five our of guess, continuing. will might and it. with mathematical question, many feel So, earlier be last close on from IT over phenomenon expansion years, semiconductor products, you don't empirically, that in have trend in given that's we've pretty the of adoption good, I we've to COVID-XX, constantly an averaged portfolio And points two our we this this we responded And continuing. XXX franchises,

margin. have once cooling still this semiconductor revert back, will semiconductor the gross of expansion accelerated margin. level to we all bit. a of normalized basis-point gross starts more excitement XXX XX our some expansion, our see So, belief, we But things But off expansion a of my seen to sustainable

question, our it. will And our there but right, expand. semiconductor anywhere about -- China, we're this we exposure revenue. and to continue But not that's XX%, to stick last cannot -- That's semiconductor going of XX% China. Software, at your you're with first

Operator

come ahead. Please Vijay Mizuho. One with of the moment question. for our line will next go from Rakesh That

Vijay Rakesh

Just here questions two again.

Sorry.

I a saw had quarter good On enterprise pretty guys storage guide. side, the you

wondering second some, are on your in what that just that know to of what some close terms strength VMware in waiting And side. enterprise. also, still are of where and And you the I going question give forward? have fiscal Just was consumer most between my you said stands? approvals, the that exposure you we Thanks. 'XX. on gotten you're color, us you Can expecting seeing

Hock Tan

of breakdown, Okay. our on basically classify a It markets, cuts what's markets, revenues? but revenues, across consumer. Well, asking breakdown probably our ways, We except terms semiconductor -- non-end three would on us all wireless. our our me groups, asking groups. Wireless three is in of end you're

of XX% And so our represents no between XX% And -- is between revenues, to XX just to XX% less about enterprise the evenly XX% within our on semiconductor XX% description. anywhere split which be is -- balance, almost surprise, than the from over just best consumer almost business could -- call hyperscale to providers, provider. XX%. which to grouping between that's evenly it, hyperscale, And service enterprise split. the -- call so we and final as we and traditional that's enterprise, related be as and service the traditional telcos, is which guys Consumer, telcos, we consider and XX% to

of -- and across a VMware, it, a just to reiterate, fiscal through 'XX. far would say, it several And it's thinking and few right we jurisdictions. expect progress. And of think we're you couple within to this we're the process when good -- making I regulator as As on now, close fully moving --

Operator

will from the come Joseph for of That question. ahead. with Moore go Morgan Stanley. our one And Please next line moment

Joseph Moore

kind is the what from of that And number the regards to that, say, XX lower? get if get you XX-week With to, like to you foundry, the your of down? talked standpoint to there things want that goal you lead the next, has about, months? do to what want that substrate, times extent over Do to happen

Hock Tan

know. don't I

politely, yet, No. because demand like also kind to be XX-week of their haven't out about seriously, It it visibility. about Joe. gently one hard We frank, it time, lead the I that great thought year. pushes gives us

we the to good each great is between now Meanwhile, know know and we all XX stand pretty stand So, with it visibility. gives us we end of which now, where weeks, we other visibility. where

Operator

That next with Hari Sachs. Goldman will question. from go Please one come for Toshiya ahead. of line And our moment the

Toshiya Hari

of and quarter, follow a from quarters, your it's wanted substrate indications guidance couple quarters, the on expect marking supply that determinant up accelerate, I where other key the sequential the foundry Thank on or should perspective, your rate you. be growth. easing in your growth end the be the of October to Joe's for been of on starts growth pretty supplier of Hock, to given continues a you've of revenue over mid-single-digit based on revenue your markets? or question just kind point there time key be the the next several Based could to supply we to past modeling growth of that some suppliers, few cadence kind clear in normal over side. from the

Hock Tan

hell of a a good That's question.

through try So, and closely not can We as really We've revenue. need ship say, continue let as we our truly which we we we to really consume. and we constrains And trying as basic our and that's to it's said that. to to scrub according -- customers that what supply that. at And get that to -- as as answer is this. to look said, always all me

real if -- constraint. So, you the and getting it that It's look demand, real is to at way, demand. a not a supply true demand

our what increase. manufacturer. last all by from you me. seasonal us October QX, Believe North X.X. X.X, the up largely X.X That's ramp really Just driven bump drives handset that of quarter, see American to This is

really and still -- mode. very And the not I've all end same consumption we're four, for tight it's products, and it's we're much last -- that supply. in five So, that very, of about to behavior said quarters, about

Operator

That question. for go line Please come Pierre New moment the Ferragu Street our Research. will next from ahead. of one with And

Pierre Ferragu

in like in your your Hock, networking. co-packaged prepared you first mentioned product optics remarks

front. things And you wondering -- your I slightly us so, on of a deeper where portfolio. can this stand first overview product give was And on if

in regular with co-packaged in parallel going like, terms co-packaged few of with is how make to which, So, the products meant can like co-package have, specific is than optics going going then, hockey a be going the adoption adoption, become material And in next and that you a products sense sense to progressive it's X, X like, are to in optics you to of more stick And used a be the if from like X, years? in to maybe parallel us optics? next traditional more on market optics be give cases pluggable use certain bandwidths to going it's adoption years? from are or

Hock Tan

Okay.

never to through generation -- products. be though especially we is as slower even say come myself. out adoption much And about franchises semis, our is tends across all they're pretty of mean, It I me question I is your try we in think. talk to product we And it how Let cool, like Basically, new constantly this. it in be. as -- to than all quickly

as still generation. we in to are total XX% take X, total. would X, selling instance, as was -- Tomahawks, generation volume, my of selling top Tomahawk the And I'm data rank switching, Tomahawk data X now, than estimate for the percent Tomahawk the switching. Tomahawk center before a current X. And which of X, I you sense, be Tomahawk give just a to less So,

So, happen. you that to and can see tends they coexist,

it where X be So, time Tomahawk we to X, the point our probably now, maybe by two launch from minimis. the Tomahawk becomes de getting years we're

-- mix There's is new a part new And very any matter, take in stick we product see X there's of always coexistence multiple storage to way across. And have such that of shared X, is no adoption. So, have day, no you having it's to the a hockey the it this constant we a adopts volume product product all, where have running whether mix, probably shared which of new it's world we a will by X clearly way, it, the the technology. a player. keep have, -- or generations. winners when that we why apply server That generations there every simultaneously technologies. boil And -- we because as we it's down of thing coexistence, is the end and at for

very Now, passes that not gets our year where not each consumer or okay grows rapidly of X adopted have to XXX as gross perhaps measured running generations year why grows of American because your means to more uncommon is as would products. course, of it generation simultaneously. but And like simultaneously. -- OEM terms running basis -- newer more stick. coming than is a less manner, XX the mix I three generation. And it generations that hockey and have that more our answers because to our hockey while, margin get margin -- product any see products sustainable. in of more takes and particular gross a each steadily, points I down Infrastructure North question. X of -- That's passes. as even hope of it's product of in but we it's would gross drains more margin stick, of reflection expansion much a that a we believe, back our to, And more But then, infrastructure it's we a

Operator

Yoo I like closing the Ji gentlemen, to for back any over remarks. and Ladies would call to turn Ms. now

Ji Yoo

for call. XXXX. to you, Thank call earnings may Thursday, X Pacific. webcast the you conclude Sherri. 'XX Broadcom's earnings end fiscal on for quarter report X, its after you call of A follow of market fourth will the close That our conference at of Thank earnings today. joining. Sherri, will p.m. currently plans December Broadcom public all

Operator

This Thank concludes today's for call. conference you participating.

You may disconnect. now

Broadcom (AVGO) 2 Sep 222022 Q3 Earnings call transcript