- Earnings call transcript Q4 2022

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Operator

Welcome to Broadcom Inc. Fourth Quarter and Fiscal Year 2022 Financial Results Conference Call. At this time, for opening remarks and introductions, I would 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. release financial tables quarter performance year press closed, the and a XXXX. our describing for distributed and after financial market fiscal Broadcom the fourth

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

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

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

Hock Tan

Well, thanks, for today. thank And us Ji. you, joining everyone,

fiscal QX our ‘XX. on what me in put achieved let color results, provide I Before year perspective we in

XX% by technologies. by pleased partnerships operating accelerated robust adoption R&D grew billion, model, growth. year year-on-year customers cash share our I’m our organic our year, that of increased With revenue $XX.X another driven growing free growth profit and with the For our by per yet of business report fiscal strong flow which was and of our This a year-upon-year. year-on-year, we enable consolidated next-generation hit XXXX to XX% XX% investments, record double-digit

service hyperscale, in $X.X was revenue North grew end as semiconductor this, year-on-year these backlog fiscal increased In customer. shipping to up discuss results, In solutions perform strong net the ‘XX, continued up to XX% sequentially year-on-year. and revenue ramp we billion, billion, top and infrastructure Now Semiconductor On platform our QX fiscal grew In consolidated by a wireless and software of our new our our details across our American emphasize, demonstrate to year-on-year record QX, needed when I’d business QX. enterprise. and discipline continued of revenue to our providers our billion. only as $X.X to well $X.X reporting we XX% X% customers. like

contrast in we spending remains today markets, So, this to demand we in believe to overall spending experience and weak see continue what we QX. in of is consumer our to and recession, global continue and sustained infrastructure electronics most of concerns despite end a strong,

And see billion routing custom actually service compute So, offload for cloud Tomahawk core data record billion Jericho Starting in solutions let was Networking deployment And center from in to networks and with edge and next-generation at the cloud delivering and ‘XX. in of lead at upgrades providers. our surpassed accelerators portfolio continue fiscal revenues $X we customers, representing multiple expand We amount of and growth on hyperscale semiconductor me with see we $X.X up customers. this. at networking. revenue XX% strong revenue. X was year-on-year, our of switching for a XX%

XX% to grow expect strong be Looking about year-over-year. and we into networking revenue QX, do

record of billion XX% was our storage year-on-year. revenue XX% Next, semiconductor connectivity and revenue up $X.X a or

in and we to connectivity trend we XX% previous storage customers are in QX, earnings above revenue will storage This our expect from content and as call, mentioned we benefiting increases continue here year-on-year. substantial adopt enterprise both, MegaRAID grow cloud As have and next-generation adapters. server

XX% of represented Revenue broadband. of to Moving on semiconductor billion year-on-year revenue. and $X XX% grew

XE. our is business business PON and embedded from strong we and broadband to about to North X be ongoing benefiting X.X drivers DOCSIS of continue at growth. XX% and behind the providers European QX, with deployments year-on-year Wi-Fi XX-gigabit multiyear broadband and Our In American service expect by secular

wireless. and represented to coming the on QX Moving of from revenue expect increase we single to content. QX, XX% semiconductor low digits be revenue of in largely billion year-on-year sequentially XX% $X.X with revenue year-on-year. higher And wireless flat up

in QX North year-over-year In percent growth we resales resale continue as to European China automotive. year-on-year. offset the industrial X% $XXX million softness grew QX, forecast American low trend of Finally, industrial in mostly single-digit and the of strength

solutions semiconductor expect summary, And QX, XX% year-on-year. QX year-on-year. approximately at in XX% growth And to so revenue sustain was we up in revenue semiconductor

Moving bookings on of renewal of subscriptions $XXX rates cross-selling averaged to of X% year-on-year contracts. XXX% we software total of of and billion terms, X% Core revenue infrastructure year-on-year. to $XXX strategic included maintenance. spite ForEx our grew renewal And dollar of software. strategic recurring software Within in Over of our represented XX% our revenue million annualized impact value expiring averaged accounts, adverse and consolidated products these of $X.X accounts, In represented grew customers. in In revenue. QX, million XX% XXX%. portfolio the of

be year-on-year. In accounts, at year-on-year, revenue billion, mid-single-digit expect in segment revenue, Over averaged of up revenue, of revenue this, flat and is Brocade infrastructure $X.X ago. QX decline year-over-year, of year of growth in was expiring which enterprise of we’re the our end $X.X ARR, billion, revenue percent consolidated offset was a we business. from QX XX the XX% recurring QX, rates indicator by we summary, annual forward over consolidated months, averaged the XXX%. up a year-on-year core X% contracts. software our guiding last And software reflecting our which XXX% the And renewal to strategic in Because

booked are we providing are environment, year. we the not for While guidance fully this fiscal you in XXXX, for

VMware. tells me of you acquisition financial provide performance for a quarter, our Before about our on update the pending Kirsten brief more let

conclude will Broadcom VMware be fiscal that, in completed call of are era. that innovation is review. enabling turn other close choice various Canada and and this let anticipate that, extended and with Brazil, would in their to We key Kirsten. merger around Africa. complex we regulators having the in over our progress we’re making said they still regulatory technology about in me as received much that regions, world, accelerate enterprises multi-cloud combination this this confident this most addressing will that the time to With are clearance especially The process review transaction. the our of when XXXX. given the transaction And expect be size Having we South expand line by their confident for filings We more very and see challenges

Kirsten Spears

Thank you, Hock.

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

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

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

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

out XX of EBITDA our quarter with our billion, to in be point to days mix profitability, and $XX.X up projects. have QX was of because operating non-GAAP to In XX% up for ended XX% of we prior XXX is X% and R&D fourth which debt, $X.X the of step from points down for billion, roughly because forecasting with of the revenue on We that cash $X.X $X.X of cash quarter. higher fiscal up Moving to for of million trends billion gross we QX business of of is $XXX and guidance representing basis of sequentially of flow. quarter quarter end cost like were hiring short in current be revenues product in revenue. from in term. spending quarter gross on expenditures. could engineers of mix compared projected a We of materials. consolidated cash as conditions, and multiple spent such $XX.X could critical We XX the billion inventory would first we outstanding adjusted billion quarter Based margin fourth the days fourth of Free XXXX revenue. million third approximately expect changes, flow the $XXX quarter the the sales capital Days the the ended

our XXXX. financial recap Let me year performance fiscal for

billion, $XX.X billion, XX% year-on-year. up for Semiconductor $XX.X Infrastructure year up a was Our billion, XX%, was software revenue growing basis hit the $X.X year-over-year. year-on-year. record ago. points from up year revenue was a revenue solutions Gross margin X% XX% XXX

$XX.X million XX% year-over-year billion depreciation. EBITDA $XXX of flow to ‘XX year-over-year And billion, billion, XX% up grew revenue. up We This expenditures. revenue. was XX% Our $XX were on or figure represented and million year-on-year. revenue. operating XX% spent operating capital $X.X year-on-year XX% net $XX.X net up $XXX Fiscal cash XX% and free billion, was of excludes fiscal of income ‘XX expenses represented X% Adjusted of

to allocation. Turning capital

the we repurchase resume with the repurchase billion common soon our stock ‘XX, of billion share form consisting billion, in in SEC ended dividends spent We eliminations. as expect billion of of under and $X.X cash rules. and fiscal of and remaining $XX.X we authorized as year repurchases $XX programs can For $X to

in call count potential $XXX Aligned non-GAAP quarterly diluted with intend our XXXX in fiscal cash ability expect are common share. implies generate this dividend record flows target preceding to approval. $XX.XX Excluding announcing $X.XX impact of like a to increase fiscal This in for year, in annual prior annual increased cash our XXth repurchases, increase be in the of million. quarter. would any ‘XX, to fiscal since my throughout QX, open dividend maintain share share initiated an per XXXX this an be we from Board concludes subject increase to to please the to dividends we to the questions. the our QX quarterly that in prepared per That XX% the consecutive stock quarterly I common Operator, dividend stock represents share, we We XXXX. dividends highlight up the remarks. fiscal

Operator

Thank Instructions] go will today’s you. [Operator question Muse come from with C.J. And ahead. ISI. Please Evercore first

C.J. Muse

guess, infrastructure I we’ve speak to weakness you seen been to You elsewhere segments. well up from has immune I most holding was date talked semis. the hoping infrastructure about across why could so more in

to ‘XX? you’re speak of hyperscale Thanks throughout versus you you perhaps fiscal see speak to you trends can can differences enterprise? And in much. these there? seeing Any trends how so also, Specifically, all

Hock Tan

even was broadband to see parts a are now, and a COVID-XX, trend multiyear. question. deployment out lot spending and Europe as there continues and is their current North growth of of Great strong; this of America, was consumption enterprise quarter we hyperscale quarter and What across invest because there right. lot plans -- of continues invest, these progress Asia simply strong; we All continues of last multiyear

areas So, I all as be on currently said, much exactly seen we’ve it. to very as these track continue

I’d as said shipping we again, I true just assure earnings want keep are just Now, to previous here today, in you, in we it’s demand. -- beyond and I call believe mind, don’t reemphasize

same quarter We continue ship consume we who much to to scrub it. pretty only backlog take can -- to also before and customers within we pains the do to we it have, basically judge the orders,

right what a as of see see the consume And tell, products so, customers our now. we as and based as we we on ship, far we can that’s to willingness accept what

take don’t Asking that. will continue products to my of place. do no, over orders the of consumption I me opinion. of tend know rest rest to our to What months, able and products. whether do I we the see next sustain we the is is for We see to see answer willing not the strength in the careful the being more I ‘XX, for to several still answer that ‘XX. in know be acquisition customers those in

we CIOs multiple, have talking enterprise out We customers have among there. to largest -- multiple

their We’ve it least about seen them will reduction have it many IT in We seen said will saying and a talk flat. at not others grow spending. remain

I about forward. guess, So, cautiously positive looking trends I’m

Operator

for will One you. come Seymore question. the our Please from Deutsche Bank. Thank line with Ross ahead. moment next That of go

Ross Seymore

on talked backlog. seen. in that’s it? Hock, different question alter to composition quarter’s your some about the was forward-looking since follow duration I your in growth? of some noticed to would I that backlog sustainability call pitfalls your demand, of last et view you a it similar in C.J.’s inventory ask avoid cetera? think and clearly, peers of change want sort kind slightly the those quarter, And and of way. you of helped last either Last you scrubbing a scrub actively changes but of need to actively X% have on maybe rate backlog But it, have your your that about how quarter, the up the or Any the metrics sequentially of aggressively of

Hock Tan

manner did it our comes continue ago. backlog last in a months or differently It we to simply very quarter, this six to no a down than quarter, we scrub year

the intact on focus very our changed wrong in people it who haven’t put not We products shelves. our ship the much, do on that ensuring very just very, still is view. That we to

backlog continues to us way be change. makes you’re and up there, Our right,

better would manner; goes and to. be following networking for also -- year-on-year from year-on-year it’s it growing hyperscale And a quarter and broadband particular networking see, one the the XX% and year-on-year, is As purchases you impacts it XX% XX% can growing growing XX%. word, their growing not it quarter, end just broadband bearing seasonal one markets in of

But in very strong doesn’t and mix we what any the vary, there’s backlog. change they backlog our And it demand that we’re very, what current still quarter for will we in reflecting which of change. we we products have is quarter, ship are end fact So is important most a and shipping, particular all a the believe, products. as

Operator

of our come the for next from will That question. Bernstein. Rasgon moment with Stacy One line

Stacy Rasgon

take. said ask question explicitly. times? and guess you were now? backlog quarter, where What are So just $XX the XX or numbers and where Hock, Like, I lead to Last give your those is billion I semiconductor times your was still lead think weeks, backlog are

Kirsten Spears

Stacy, Kirsten this Spears. is

going to the guide not We’re year.

So, we’re providing that... not

Stacy Rasgon

to guide asking year. you not guide the asking you to not year. I’m I’m the

Kirsten Spears

Right.

the fully We’re booked for year.

to So, if I year. give you the backlog number, I’m effectively guiding the you

this So, that we’ve at chosen not provide data to time.

Stacy Rasgon

I can just me, it Okay. or has tell up, gone flat guess, you down?

Hock Tan

Our want it to continue -- the call our telling don’t it’s not base it, what not continue grow. for you the year, -- if forecast that, We’ll forecast. backlog, forecast guide. I’m to for Other is. we’ll you We year, than our

Stacy Rasgon

you’re saying? backlog Got it. But is what that you for think year will the grow

Hock Tan

Our will year forecast grow.

Stacy Rasgon

Got it. Thank it. Got you.

Operator

Harlan Please go Sur the you. of line Thank will moment JP our with ahead. question. That for from next come One Morgan.

Harlan Sur

XX% importantly, about sustain in server has And fiscal the storage to continues on is We business diverse much HDD outlook. preamps, that think business business tend but been quarter up connectivity to more ‘XX. your more January right, than plus your controllers this. strong, extremely Hock, typically and based

customers maybe business, So, HDD which and of MegaRAID, can near-term the storage major controller segment? many in connectivity or your this storage of first walk is is weakness I And competitors seeing in PCIe what through versus just, what’s storage your like preamps? the what controller are franchise us you call growth storage and overall all, when percentage primarily driving

Hock Tan

and what question. call, my includes we you’re which And have what broad. is. included connectivity interesting connectivity, -- exactly on-prem I is storage nearline adapters which right, bus host storage on some, mind drives, -- Well, our includes server an hard don’t the that’s It’s server it numbers

particularly due broad-based, our of indicated as as I before, the growth, of said, a the dollar part is fact I Just the generation the big products all MegaRAID growth, from that boards. -- the are big new the percentage big subsystems, to business,

chips. We’re just not shipping

is growth ship that not grows. not unit content much XX% XX% part subsystems big but obviously. the board, we of A and counts overall, unit announced, big of growth is as growth So, said as for [ph] and part even up, But we Notwithstanding, then growth. a that enough as it’s chips. everything and it is the grows. But versus it’s boards that across up, the

Operator

One the moment with Arcuri That question. UBS. for Timothy of our next from will come line

Timothy Arcuri

consumption. and think demand scrubbing on you keep is to what you Hock, shipping you’re

changed So call in to between a imagine that you’re I some that delinquency it call your what there’s delinquencies, we what what and I could you’re others haven’t guess between want delinquencies. customers this in would or you any gap I believe shipping take that gap still want, probably this that’s quarter, your that I given guess and a approach, declining. but quarter Obviously, customers shipping what

is, So question gap Thanks. smaller? gap? you the getting the can is quantify I guess the And

Hock Tan

an of really to a or -- don’t excited, quantify to know customer request backlog characterized the overly -- it -- question. it’s That’s guys try want under big very or customer And categorized part is often And you you gap. is we interesting don’t I CRD dates. but sometimes get

and months ship in way amount actually up. this quarter, higher much from do. ago? last actually shipped, in last the what only But forum in than I was backlog what we Has CRD’s customer was still it instance, thing got there’s -- of quarter to requests a we Our six this want for it last and big much, guess, is better months six can of particular the our same ago. I date excess particular

Operator

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

Vivek Arya

have actually clarifications. quick very Thank two you. I

to in mix-related, I for or business And is down wireless you should QX. in something QX. your heard we of QX. then doesn’t your -- there’s there’s all sequentially see should there prepared you I be really anything Is China impact business just in keep in seen in mind? impact I semiconductor wondering know the lockdowns in gross thought to on nothing gross Hock, First, impact a any have we in QX? I expect margin be margin, seem or the goes like-to-like if was that that

Hock Tan

Okay.

a Let’s it a take few go to is interesting, here. your interesting first and second then connects dots question, first which question more because

to one, first really that shutdown that’s QX and inter-quarter -- and our all is is why a slow But as as don’t give obviously of our movements any the for and like, sense the see -- On -- numbers QX does down customer, shipments. you kind is me you single is wireless one of COVID our away know, too and nothing between good far measure. what does accuracy year-on-year But QX reflect. pretty is which but we

and -- logistics see was just I to you in some year-on-year was As that -- XX% I’m impact the and but and really was actually with X% of still -- do QX logistics picture. shouldn’t in say largest sure QX chain has but I but movements on there, up, COVID -- tell customer, can’t just obviously bigger something XX%, between, there’s our

visibility. QX, don’t any positioned Now I’m certainly indication. switching to give have and you on not We

to particular -- broadly, I’ve we it products broadband; gives because the And you to highest gross Now sense, are each in. of turning and you of nature color, collectively as a product question the wireless even look more vary, simply depending our of to broadband, wireless market more of on that than QX, it, a higher niche times markets, though give part many somewhat margin, in conditions, networking participate before, mix. and course, to ship, when receded And QX some we the your tends shifts we markets hasn’t gross as it’s it’s some have because mix and and the products you at of has margin, much said those that those have margins But percent. all lowest. the perhaps a product margin the still big it’s the all the of there mix does from away product networking ecosystem remains margin, chunk the on second to of

than on can inventory sequentially. and mix way So, see we actually that’s And from that more of margin one natural Nothing our gross impact the those products see it gross on too. products the the margin grew, just vary with the we you ship why other.

And to revenue As our positioned on ending remains inventory QX, we inventory X% in obviously, pretty as that increase before. -- reported, Kirsten QX, QX from QX as about our and even flat. ending grew that the guidance see you ship the quarter is

Operator

with for Moore next line the One our Stanley. question. That come moment Morgan Joseph will from of

Joseph Moore

Great.

guess, adjustment your a much being try about for next next you non-cancelable booked visibility what’s backlog think How if customers to going to talked the year And with year. in you to that you make whole be You potentially come period philosophy gives do and an economic year? really? I weaker

Hock Tan

orders Let’s mean, we’re the committed ship. for they we’re when booked. non-cancelable And that that. I know to we really know, first got orders you have paper start us I booked, our are Customers orders. as with mean says part.

the the We when are we it backlog paper. say we have fully booked, there. means have sitting we And

depression year, second collapse not and My you all in we’re is and which or the Now, What guidance. months, is next question. answer around asked recession, annual would recession, more giving things hit why a months, a X if we next don’t is years, partly massive you customers do? the we know, late -- interesting question what really X I

point, We will to do. circumstances But react orders. as this we require the and have us when at

Operator

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

William Stein

you’re that seems to at -- least Great. outlook flow, did. in cash Thanks capital the didn’t relative for tactics the ratio my and terms The and the payout on -- of but maybe is the taking Does discuss outlook. question, were policy the policy the you’re indication a view made. The or allocation results and And that why good free it congrats reflect the setting timing change, Thank changing or resuming hoping you these anything the VMware close, else? bit the about you. of it can to lower than or just XX%, buyback. it an little around related concerns macro decisions I’m a

Kirsten Spears

Well, flows. we I increase preceding would of a seeing, this And we’re the all that XX% say year-over-year XX% is dividend. policy-wise, always out in said believe we would free a year’s economic pay that -- we’ve that are we approximately cash robust environment

And so with yes, we’re that. quite happy

Hock Tan

And buyback we’re start rules do going us that. don’t forget, once to allow the to

And so, get that’s shareholders, and cash we another as of as intend soon return going to that fully to we could.

Kirsten Spears

As soon as have billion we that still can, and under we $XX program.

Operator

And Ramsay next go will Cowen. Matt come And one line the that moment our question. for ahead. from Please with of

Matt Ramsay

point. last the Hock, higher I year third that seeing the sort Thanks. think in just stack? than a kind interested hyperscale script was leveled $X volumes you like be per go and terms revenue. tape-out there. the that’s seeing is disclosed down the a acceleration are in fiscal some higher base you And of guys bit now it things then did maybe in of ‘XX seems or really And about -- the offload in of node of I’d in offload business you franchise, looks prepared at business. could a up It guess, trends the like this of there. compute think billion. you a a I I on It jumped that And was really the trends the in maybe broadening big, wants custom the of that pretty this some compute you ASIC silicon that year. an talk off as guys year, you’re of bit event little some earlier fiscal in customer Maybe and

Hock Tan

semi-custom from multiple hyperscalers that the we -- largely have all offload they own. in their or as that we custom have call right or you’re And Yes, collectively regard programs on compute. do silicon,

me of to all you So, to the out come a one for revert continuing next unless ask in technologies for and it large is you to we to positive lumpy. and way the that use hard us and lumpy very a $X an ongoing very that’s figure these harder fairly a deployed. be an why But tricky the is it’s this look hyperscalers lumpy, I’m correctly ASICs, to chart is will now, not five But you years. that’s versus billion opportunistic programs, ago. a ask becomes you a another even issue ramp to it on, would if from it get very merchant question will trend over you And say poses be it five to raise very On for of say, silicon it forecast. as or the over to increase custom for me then, These for for go, year are and which third honest where year -- basis, rate me next -- I’d if the more and can give two, really out. is good positioned years, And in predict. our thing like,

Operator

question. Aaron And will Wells one Rakers next with Fargo. the come moment our That of from for line

Aaron Rakers

to had clear comment I the to on make you want back Hock, go it. made, prior wanted to and sure I I’m

customers, think that I that comment lead context bit of of it notably not appreciating that earlier. were forecast the time I just about around a talked times, of I possibly discussion be longer. within was giving you any giving context want lead Any think understand kind you the you’re of helpful. little behind backlog, context kind that to -- would

Hock Tan

the practice And relates major we of have in really as to I’ve previous that times we on kind said about not means, forecast, comment. mode. any and changed way talking along any as We our before, go we’re by haven’t it but lead substantive forecast either

the papers, depending before, scrub I out in referring request ship our as the what think it the I indication backlog. before But of backlog And you shipments, point and said forecast this current we then we for we use. on demands giving was to through dates still those I at each preceding quarter grinding customer of simply date that it that have don’t are we and we quarter, -- our on we with is. paper because any forecast. But scrub not even or those way we’re have obviously, we

Operator

will One our That question. moment for Goldman line Hari of next the Toshiya come with from Sachs.

Toshiya Hari

of But hoping you talk consumption perspective little in at you I are what much about enterprise, fiscal a cloud ship Thank And a have visibility about end end customer trends customers? in ‘XX? talk seeing expectations And bit terms into what’s service being your could How going business was was in the your from forward? don’t kind what would end know your be perspective. I are hearing can you you’re that you. from of helpful. what perfect of to and consumed significant across Hock, providers, level. you from not headwind a -- China, so China if

Hock Tan

your than today. in yes, compared see our of But China, slowed down. in indicated slowed China it in and I Well, in slowed revenues But industrial, strength North products is directly They’re mind, weakness prepared has America to industrial seen just in ago. China question the our particularly But collapsed, what but industrial we less but in total consumption big especially of beyond of my in our remarks, side, slowed even slowdown. XX% have still not represents is IT in a to in that, -- that were we part of which that. Europe, business, automotive, terms strength It totally that’s across a we as down, keep business has which infrastructure. across down a down we answer year -- they have and see they taking

our for some of has obviously effect, have it launch while impact to that it’s on trend the not overall company. much sufficiently level offsetting growth entire So,

Toshiya Hari

too or improvement side, tell? is it of Hock, to on signs early IT any the forward, And going

Hock Tan

I of some too point -- a down for It’s there’s me a when things to in But early wrong might month’s call. chance I call, sense at think make a good could make it’s this a reopening. be if shut time again. I

Operator

question. from our of Susquehanna. for will moment come Christopher the with line Rolland One next That

Christopher Rolland

trend here, on bucking semis the Congrats on Hock.

divergence, kind the between wanted and was So, but my one, on enterprise networking. addressed question, maybe the talk to I about it of China particularly last storage

guys in core there. And if a it, a large explanation disk an the was talked and in perhaps happening inventory had hard China well, you divergence seemingly other such build, a storage, for your wondering of there’s about why similar competitor as you -- big some You -- networking and and downturn difference. drive, had I have call that a something demand, in in, lot

Hock Tan

was The service is only to storage broad-based. our question an explanation earlier portfolio in pretty

areas with RAID, Now, but large more MegaRAID, have. we they than pretty MegaRAID of much, that very like are a are areas couple particularly

are It’s You’re there we some see and obviously. But tell broad-based. pretty overall, puts we takes, correct. And what you.

Operator

will come That Edward with for our moment line the next from Equity Research. Snyder One of Charter question.

Edward Snyder

pressures about Hock, I’d recessionary you bit to the talk any this like be to one business, him first more solid. your really I wireless a guide you and if little which see retail-focused will probably know is them.

for get that some what give order a First, firm would you book. us firm number year, order some for on starts total but when of idea projection your year I for get don’t the the you a know time. model the be

of if the competition your areas, largest -- XX-day? and So maybe it help is to custom kind what or was think content obviously And orders your in overall you wait so firm there next then shift just about focus there’s would looking stuff core for into signal -- we of what Thanks. if could some should the maybe se? at some would increased a per some of change how that and Is if see you’re your you of mixed how year customer wondering I on more in of the XX-day, for anticipate RF. book order or that characterize a be. you would touch you when So because

Hock Tan

question. Okay. Interesting

that. Let address and me try

you non-cancelable. QX, assume all when on you forecast imply or been I are real say orders have These guide give we only paper, shipments, QX. only we so orders. And First, on it’s all -- I can you orders,

about have So, end it. you we committed ends, are all, far talk to orders. think QX, numbers you as at we These when way, forecasts intend by the customer we’re that These the not And we that we giving can are needs ship scrub. especially of which as January.

beyond as orders end have of is. January it We

pretty And revenue in are forecast. these same that orders. that by committed So, committed very -- token,

to it Just clear. make

way, pretty by good and customer, visibility we from -- have that for particular -- too. right You’re the

delivering front every of this well part still second is we’re in it, And franchise years, performance, call the this North believe the the of that’s as mixed we else. question, only no American their necessarily, technology best, the controllers, we’re Wi-Fi, to positioned competitors and I pleased -- have we not something focus increase to you very to see those value not I in customers. content find best to reason because high over few know. could we we very, our -- these can our single. that, we -- are my this Bluetooth, we year this the And apply beyond gain increase. have from customers. and best areas we in your end, else are same experienced, very RF and to someone where product where and that our Now yes, content you’re is line thinking. a hope all lines on And in But with period are, touchscreen always product is There’s that’s share almost that

Edward Snyder

so, the see don’t in that, more you difficult franchises competitive shifting year for you coming franchises section the especially you... or landscape the and RF think next things in making or in your you your and But

Hock Tan

Answer is no.

Operator

with And our line New come Street of last Pierre from the will Research. question the of Ferragu day

Pierre Ferragu

for booked you’re mentioned you XXXX. fully Hock,

questions of lot a had one. that You’ve on

look know like the And down you I that. give and least this things to fast, if where don’t your give where year very numbers, I growth full over growing tell you and But in you the booking dynamics, like So, squeezing one. could the if us at full as see advance books year you in in you one today, was see in for XXXX do for most wondering, the last I if it the apologize kind growth? I things of year. a completely us keep are accepted dynamics where can’t you guide. idea slowing of order like want you us could

Hock Tan

up as centers; to enterprise, broadband. and we across in in where reduction spending call finding looking we why do earlier, We we’re their building I hyperscale, XXXX. hard see we well, of imagine, Infrastructure very strength seeing infrastructure, and where is in made it, centers data to -- still continue the a so service do see IT we in their said in by infrastructure. we for data comment And providers, from broadband gateways our comes far. at to have like it see even in know And -- this telcos, people large holding components I where cross-section a that’s not access, enterprises, are not -- see

drop real We and have enterprise we customers, seeing -- their seen end-user who are too customers not I’m ‘XX. have come budget enterprise end-use many talking customers, across below not IT

of think that asked, clear need have modernizing they I was every continue me no all we that recession. was all is hear we a and up as to likelihood, keep most model. business to their given to global reduction their only even possibility flat explanation that the day even For the as there the or either digitizing platform and it’s -- have And compelling only why such workloads the

Operator

Thank you.

back remarks. for would Ji no in to the now I like call any As Yoo questions the there time, turn closing further to this queue over are at

Ji Yoo

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

Operator

you Thank concludes you. This conference for call. all today’s participating. Thank

You may now disconnect.

Broadcom (AVGO) 9 Dec 222022 Q4 Earnings call transcript