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[ "Edson Arantes do Nascimento (Brazilian Portuguese: [ˈɛdsõ aˈɾɐ̃tʃiz du nasiˈmẽtu]; 23 October 1940 – 29 December 2022), better known by his nickname Pelé (Portuguese pronunciation: [peˈlɛ]), was a Brazilian professional footballer who played as a forward. Widely regarded as one of the greatest players of all time, he was among the most successful and popular sports figures of the 20th century. In 1999, he was named Athlete of the Century by the International Olympic Committee and was included in the Time list of the 100 most important people of the 20th century. In 2000, Pelé was voted World Player of the Century by the International Federation of Football History & Statistics (IFFHS) and was one of the two joint winners of the FIFA Player of the Century. His 1,279 goals in 1,363 games, which includes friendlies, is recognised as a Guinness World Record.\n\nPelé began playing for Santos at age 15 and the Brazil national team at 16. During his international career, he won three FIFA World Cups: 1958, 1962 and 1970, the only player to do so and the youngest player to win a World Cup (17). He was nicknamed O Rei (The King) following the 1958 tournament. Pelé is the joint-top goalscorer for Brazil with 77 goals in 92 games. At the club level, he was Santos's all-time top goalscorer with 643 goals in 659 games. In a golden era for Santos, he led the club to the 1962 and 1963 Copa Libertadores, and to the 1962 and 1963 Intercontinental Cup. Credited with connecting the phrase \"The Beautiful Game\" with football, Pelé's \"electrifying play and penchant for spectacular goals\" made him a star around the world, and his teams toured internationally to take full advantage of his popularity. During his playing days, Pelé was for a period the best-paid athlete in the world. After retiring in 1977, Pelé was a worldwide ambassador for football and made many acting and commercial ventures. In 2010, he was named the honorary president of the New York Cosmos.\n\n", "Averaging almost a goal per game throughout his career, Pelé was adept at striking the ball with either foot in addition to anticipating his opponents' movements on the field. While predominantly a striker, he could also drop deep and take on a playmaking role, providing assists with his vision and passing ability, and he would also use his dribbling skills to go past opponents. In Brazil, he was hailed as a national hero for his accomplishments in football and for his outspoken support of policies that improve the social conditions of the poor. His emergence at the 1958 World Cup, where he became a black global sporting star, was a source of inspiration. Throughout his career and in his retirement, Pelé received numerous individual and team awards for his performance on the field, his record-breaking achievements, and his legacy in the sport.\n\nEarly years\n\nBorn in Três Corações in Minas Gerais state in Brazil in 1940, Pelé has a street named after him in the city – Rua Edson Arantes do Nascimento. A statue of Pelé is also prominently placed in a plaza near the city's downtown.\nPelé was born Edson Arantes do Nascimento on 23 October 1940 in Três Corações, Minas Gerais, the son of Fluminense footballer Dondinho (born João Ramos do Nascimento) and Celeste Arantes. He was the elder of two siblings, with brother Zoca also playing for Santos, albeit not as successfully. He was named after the American inventor Thomas Edison. His parents decided to remove the \"i\" and call him \"Edson\", but there was a typo on his birth certificate, leading many documents to show his name as \"Edison\", not \"Edson\", as he was called. He was originally nicknamed \"Dico\" by his family. He received the nickname \"Pelé\" during his school days, when, it is claimed, he was given it because of his pronunciation of the name of his favourite player, local Vasco da Gama goalkeeper Bilé, which he misspoke, but the more he complained the more it stuck. In his autobiography released in 2006, Pelé stated he had no idea what the name means, nor did his old friends. Apart from the assertion that the name is derived from that of \"Bilé\", the word has no meaning in Portuguese.[note 2]\n\n", "Pelé grew up in poverty in Bauru in the state of São Paulo. He earned extra money by working in tea shops as a servant. Taught to play by his father, he could not afford a proper football and usually played with either a sock stuffed with newspaper and tied with string or a grapefruit. He played for several amateur teams in his youth, including Sete de Setembro, Canto do Rio, São Paulinho, and Ameriquinha. Pelé led Bauru Atlético Clube juniors (coached by Waldemar de Brito) to two São Paulo state youth championships. In his mid-teens, he played for an indoor football team called Radium. Indoor football had just become popular in Bauru when Pelé began playing it. He was part of the first futsal (indoor football) competition in the region. Pelé and his team won the first championship and several others.\n\nAccording to Pelé, futsal (indoor football) presented difficult challenges: he said it was a lot quicker than football on the grass, and that players were required to think faster because everyone is close to each other in the pitch. Pelé credits futsal for helping him think better on the spot. In addition, futsal allowed him to play with adults when he was about 14 years old. In one of the tournaments he participated in, he was initially considered too young to play, but eventually went on to end up top scorer with 14 or 15 goals. \"That gave me a lot of confidence\", Pelé said, \"I knew then not to be afraid of whatever might come\".\n\nClub career\nSantos\nMain article: Os Santásticos\n1956–1962: Early years with Santos and declared a national treasure\n\n", "Pelé in 1962, by then rated the best player in the world\nIn 1956, de Brito took Pelé to Santos, an industrial and port city located near São Paulo, to try out for professional club Santos FC, telling the club's directors that the 15-year-old would be \"the greatest football player in the world.\" Pelé impressed Santos coach Lula during his trial at the Estádio Vila Belmiro, and he signed a professional contract with the club in June 1956. Pelé was highly promoted in the local media as a future superstar. He made his senior team debut on 7 September 1956 at the age of 15 against Corinthians de Santo André and had an impressive performance in a 7–1 victory, scoring the first goal in his prolific career during the match.\n\nWhen the 1957 season started, Pelé was given a starting place in the first team and, at the age of 16, became the top scorer in the league. Ten months after signing professionally, the teenager was called up to the Brazil national team. After the 1958 and the 1962 World Cup, wealthy European clubs, such as Real Madrid, Juventus and Manchester United, tried to sign him in vain. In 1958, Inter Milan even managed to get him a regular contract, but Angelo Moratti was forced to tear the contract up at the request of Santos's chairman following a revolt by Santos's Brazilian fans. Valencia CF also arranged an agreement that would have brought Pelé to the club after the 1958 World Cup, however after his performances at the tournament Santos declined to let the player leave. In 1961 the government of Brazil under President Jânio Quadros declared Pelé an \"official national treasure\" to prevent him from being transferred out of the country.\n\n", "Pelé won his first major title with Santos in 1958 as the team won the Campeonato Paulista; he would finish the tournament as the top scorer, with 58 goals, a record that still stands today. A year later, he would help the team earn their first victory in the Torneio Rio-São Paulo with a 3–0 over Vasco da Gama. However, Santos was unable to retain the Paulista title. In 1960, Pelé scored 33 goals to help his team regain the Campeonato Paulista trophy but lost out on the Rio-São Paulo tournament after finishing in 8th place. In the 1960 season, Pelé scored 47 goals and helped Santos regain the Campeonato Paulista. The club went on to win the Taça Brasil that same year, beating Bahia in the finals; Pelé finished as the top scorer of the tournament with nine goals. The victory allowed Santos to participate in the Copa Libertadores, the most prestigious club tournament in the Western hemisphere.\n\n1962–1965: Copa Libertadores success\n\"I arrived hoping to stop a great man, but I went away convinced I had been undone by someone who was not born on the same planet as the rest of us.\"\n\n—Benfica goalkeeper Costa Pereira following the loss to Santos in 1962.\nSantos's most successful Copa Libertadores season started in 1962; the team was seeded in Group One alongside Cerro Porteño and Deportivo Municipal Bolivia, winning every match of their group but one (a 1–1 away tie versus Cerro). Santos defeated Universidad Católica in the semi-finals and met defending champions Peñarol in the finals. Pelé scored twice in the playoff match to secure the first title for a Brazilian club. Pelé finished as the second top scorer of the competition with four goals. That same year, Santos would successfully defend the Campeonato Paulista (with 37 goals from Pelé) and the Taça Brasil (Pelé scoring four goals in the final series against Botafogo). Santos would also win the 1962 Intercontinental Cup against Benfica. Wearing his number 10 shirt, Pelé produced one of the best performances of his career, scoring a hat-trick in Lisbon as Santos won 5–2.\n\n\n", "Pelé with Santos in the Netherlands, October 1962\nPelé states that his most memorable goal was scored at the Estádio Rua Javari on a Campeonato Paulista match against São Paulo rival Clube Atlético Juventus on 2 August 1959. As there is no video footage of this match, Pelé asked that a computer animation be made of this specific goal. In March 1961, Pelé scored the gol de placa (goal worthy of a plaque), against Fluminense at the Maracanã. Pelé received the ball on the edge of his own penalty area, and ran the length of the field, eluding opposition players with feints, before striking the ball beyond the goalkeeper. A plaque was commissioned with a dedication to \"the most beautiful goal in the history of the Maracanã\".\n\n\n", "Pelé before facing Boca Juniors in the second leg of the 1963 Copa Libertadores Finals at La Bombonera.\nAs the defending champions, Santos qualified automatically to the semi-final stage of the 1963 Copa Libertadores. The balé branco (white ballet), the nickname given to Santos at the time, managed to retain the title after victories over Botafogo and Boca Juniors. Pelé helped Santos overcome a Botafogo team that featured Brazilian greats such as Garrincha and Jairzinho with a last-minute goal in the first leg of the semi-finals which made it 1–1. In the second leg, Pelé scored a hat-trick in the Estádio do Maracanã as Santos won, 0–4, in the second leg. Santos started the final series by winning, 3–2, in the first leg and defeating Boca Juniors 1–2, in La Bombonera. It was a rare feat in official competitions, with another goal from Pelé. Santos became the first Brazilian team to lift the Copa Libertadores in Argentine soil. Pelé finished the tournament with five goals. Santos lost the Campeonato Paulista after finishing in third place but went on to win the Rio-São Paulo tournament after a 0–3 win over Flamengo in the final, with Pelé scoring one goal. Pelé would also help Santos retain the Intercontinental Cup and the Taça Brasil against AC Milan and Bahia respectively.\n\nIn the 1964 Copa Libertadores, Santos was beaten in both legs of the semi-finals by Independiente. The club won the Campeonato Paulista, with Pelé netting 34 goals. Santos also shared the Rio-São Paulo title with Botafogo and won the Taça Brasil for the fourth consecutive year. In the 1965 Copa Libertadores, Santos reached the semi-finals and met Peñarol in a rematch of the 1962 final. After two matches, a playoff was needed to break the tie. Unlike 1962, Peñarol came out on top and eliminated Santos 2–1. Pelé would, however, finish as the top scorer of the tournament with eight goals.\n\n", "1966–1974: O Milésimo and final years with Santos\nIn 1966, Santos failed to retain the Taça Brasil as Pelé's goals were not enough to prevent a 9–4 defeat by Cruzeiro (led by Tostão) in the final series. The club did, however, win the Campeonato Paulista in 1967, 1968, and 1969. On 19 November 1969, Pelé scored his 1,000th goal in all competitions, in what was a highly anticipated moment in Brazil. The goal dubbed O Milésimo (The Thousandth), occurred in a match against Vasco da Gama, when Pelé scored from a penalty kick, at the Maracanã Stadium.\n\nIn 1969, the two factions involved in the Nigerian Civil War agreed to a 48-hour ceasefire so they could watch Pelé play an exhibition game in Lagos. Santos ended up playing to a 2–2 draw with Lagos side Stationary Stores FC and Pelé scored his team's goals. The civil war went on for one more year after this game. During his time at Santos, Pelé played alongside many gifted players, including Zito, Pepe, and Coutinho; the latter partnered him in numerous one-two plays, attacks, and goals. After Pelé's 19th season with Santos, he left Brazilian football. Pelé's 643 goals for Santos were the most goals scored for a single club until it was surpassed by Lionel Messi of Barcelona in December 2020.\n\nNew York Cosmos\n\n", "Pelé signing a football for US president Richard Nixon at the White House in 1973, two years before joining the New York Cosmos\nAfter the 1974 season (his 19th with Santos), Pelé retired from Brazilian club football although he continued to occasionally play for Santos in official competitive matches. A year later, he came out of semi-retirement to sign with the New York Cosmos of the North American Soccer League (NASL) for the 1975 season. At a chaotic press conference at New York's 21 Club, the Cosmos unveiled Pelé. John O'Reilly, the club's media spokesman, stated, \"We had superstars in the United States but nothing at the level of Pelé. Everyone wanted to touch him, shake his hand, get a photo with him.\" Though well past his prime at this point, Pelé was credited with significantly increasing public awareness and interest of the sport in the US. During his first public appearance in Boston, he was injured by a crowd of fans who had surrounded him and was evacuated on a stretcher.\n\n\n", "Pelé entering the field to play his first game with the Cosmos, 15 June 1975\nPelé made his debut for the Cosmos on 15 June 1975 against the Dallas Tornado at Downing Stadium, scoring one goal in a 2–2 draw. Pelé opened the door for many other stars to play in North America. Giorgio Chinaglia followed him to the Cosmos, then Franz Beckenbauer and his former Santos teammate Carlos Alberto. Over the next few years other players came to the league, including Johan Cruyff, Eusébio, Bobby Moore, George Best and Gordon Banks.\n\nIn 1975, one week before the Lebanese Civil War, Pelé played a friendly game for the Lebanese club Nejmeh against a team of Lebanese Premier League stars, scoring two goals which were not included in his official tally. On the day of the game, 40,000 spectators were at the stadium from early morning to watch the match.\n\nPelé led the Cosmos to the 1977 Soccer Bowl, in his third and final season with the club. In June 1977, the Cosmos attracted an NASL record 62,394 fans to Giants Stadium for a 3–0 victory past the Tampa Bay Rowdies with a 37-year-old Pelé scoring a hat-trick. In the first leg of the quarter-finals, they attracted a US record crowd of 77,891 for what turned into an 8–3 rout of the Fort Lauderdale Strikers at Giants Stadium. In the second leg of the semi-finals against the Rochester Lancers, the Cosmos won 4–1. Pelé finished his official playing career on 28 August 1977, by leading the New York Cosmos to their second Soccer Bowl title with a 2–1 win over the Seattle Sounders at the Civic Stadium in Portland, Oregon.\n\n", "On 1 October 1977, Pelé closed out his career in an exhibition match between the Cosmos and Santos. The match was played in front of a sold-out crowd at Giants Stadium and was televised in the US on ABC's Wide World of Sports as well as throughout the world. Pelé's father and wife both attended the match, as well as Muhammad Ali and Bobby Moore. Delivering a message to the audience before the start of the game—\"Love is more important than what we can take in life\"—Pelé played the first half with the Cosmos, the second with Santos. The game ended with the Cosmos winning 2–1, with Pelé scoring with a 30-yard free-kick for the Cosmos in what was the final goal of his career. During the second half, it started to rain, prompting a Brazilian newspaper to come out with the headline the following day: \"Even The Sky Was Crying.\"" ]

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[ "In the 1948–1949 season, Wooden was hired by the University of California, Los Angeles, to be the fourth basketball coach in the school's history. He succeeded Fred Cozens, Caddy Works, and Wilbur Johns; Johns became the school's athletic director. Wooden signed a three-year contract for $6,000 in the first year. Prior to being hired at UCLA, he had been pursued for the head coaching position at the University of Minnesota, and it was his and his wife's desire to remain in the Midwest, but inclement weather in Minnesota prevented Wooden from receiving the scheduled phone offer from the Golden Gophers. Thinking that they had lost interest, Wooden instead accepted the head coaching job with the Bruins. Officials from the University of Minnesota contacted Wooden immediately after he accepted the position at UCLA, but he declined their offer because he had already given his word to UCLA.\n\nWooden had immediate success, fashioning the mark of the rarest of coaches, an \"instant turnaround\" for an undistinguished, faltering program. Part of this success was due to his unique offensive system, the same system that countless coaches use today. John Wooden stated, \"I believe my system is perfectly suited to counter all the modern defenses I have seen, and that includes run-and-jump, 1–3–1 trapping, box-and-one, triangle-and-two, and switching man-to-man.\"\n\nPrior to Wooden's arrival at UCLA, the basketball program had only had two conference championship seasons in the previous 18 years. In his first season, he took a Bruins team that had posted a 12–13 record the previous year and transformed it into a Pacific Coast Conference (PCC) Southern Division champion with a 22–7 record, the most wins in a season for UCLA since the school started playing basketball in 1919. He surpassed that number the next season with 24–7 and a second division title and overall conference title in 1950, and would add two more in his first four years. Up to that time, UCLA had collected a total of two division titles since the PCC began divisional play, and had not won a conference title of any sort since winning the Southern California Intercollegiate Athletic Conference in 1927.\n\n\n", "Wooden in 1960\nIn spite of these achievements, Wooden reportedly did not initially enjoy his position, and his wife did not favor living in Los Angeles. When Mel Taube left Purdue in 1950, Wooden's inclination was to return to West Lafayette and finally accept the head coaching job there. He was ultimately dissuaded when UCLA officials reminded him that it was he who had insisted upon a three-year commitment during negotiations in 1948. Wooden felt that leaving UCLA prior to the expiration of his contract would be tantamount to breaking his word, even though Purdue offered more money, a car and housing.\n\nBy the 1955–56 season, Wooden had established a record of sustained success at UCLA. That year, he guided the team to its first undefeated PCC conference title and a 17-game winning streak that came to an end only at the hands of Phil Woolpert's University of San Francisco team (who had Bill Russell and K.C. Jones) that eventually won the 1956 NCAA tournament. However, UCLA was unable to advance from this level over the immediately ensuing seasons, finding itself unable to return to the NCAA Tournament, as the Pete Newell-coached teams of the California Golden Bears took control of the conference and won the 1959 NCAA tournament. Also hampering the fortunes of Wooden's team during that time period was a probation that was imposed on all UCLA sports teams in the aftermath of a scandal that involved illegal payments made to players on the school's football team. The probation was also extended to three additional schools: the University of Southern California, California and Stanford. The scandal resulted in the dismantling of the PCC conference.\n\n", "By the 1961–1962 season, the probation was no longer in place and Wooden returned his team to the top of the conference. This time, however, they would take the next step, and in so doing, unleash a run of dominance unparalleled in the history of college basketball. UCLA reached the Final Four of the NCAA tournament for the first time in school history. A narrow loss, due largely to a controversial foul call in a 1962 semi-final game against Ed Jucker's eventual national champion Cincinnati team, convinced Wooden that his Bruins were ready to contend for national championships. Two seasons later in 1964, the final piece of the puzzle fell into place when assistant coach Jerry Norman persuaded Wooden that the team's small-sized players and fast-paced offense would be complemented by the adoption of a zone press defense, which increased the probability of turnovers by the opposing team. The result was a dramatic increase in scoring, giving UCLA a powerhouse team that went 30–0 on its way to the school's first basketball national championship and first undefeated season as the Bruins beat Vic Bubas' taller and slower racially segregated Duke team 98–83 in the final. Walt Hazzard fouled out of the game late in the second half on a player control foul, but this was irrelevant when he cut down the net in celebration and was named tournament most valuable player. Gail Goodrich, Keith Erickson, Fred Slaughter, and Jack Hirsch contributed to the UCLA win. With no player taller than 6 feet, 5 inches, the Bruins' speed and zone press forced 29 turnovers and nullified the height advantage of Duke's Hack Tison and Jay Buckley, two 6-foot, 10-inch players.\n\n", "In the 1964-1965 campaign, the defending NCAA champions got off to an ominous start when UCLA lost to Illinois by 27 points in its opening game. It was all uphill after that as the squad repeated as national champions with Gail Goodrich, Kenny Washington, and Doug McIntosh. The Bruins upended Dave Strack's Michigan team 91–80 in the finals of the NCAA tournament. Goodrich shared Player of the Year honors with Princeton's Bill Bradley. The 1966 squad was denied a chance at a triple crown when it finished second to Oregon State in the Athletic Association of Western Universities (now the Pac-12). UCLA was ineligible to play in the NCAA tournament that year because in those days only conference champions received a bid to the tournament. The Bruins' 1967 incarnation returned with a vengeance with sophomore star Alcindor, reclaiming not only the conference title, but the national crown with another 30–0 season, and then retaining it every season but one until Wooden's retirement immediately following the 1975 NCAA championship.\n\nThe resurgence of the Bruins under Wooden made it obvious that they needed a new home. Since 1932, the Bruins had played at the Men's Gym. It normally seated 2,400, but had been limited to 1,500 since 1955 by order of the city fire marshal. This forced the Bruins to move games to Pan Pacific Auditorium, the Los Angeles Memorial Sports Arena and other venues around Los Angeles when they were expected to attract larger crowds—something that happened fairly often after the Bruins' first national title. At Wooden's urging, a much larger on-campus facility, Pauley Pavilion, was built in time for the 1965–66 season. The building in Westwood was christened on November 27, 1965, in a special game that pitted the UCLA varsity against the UCLA freshmen. It was Lew Alcindor's (later Kareem Abdul-Jabbar) freshman season (freshmen were ineligible to play on the varsity in those days). UCLA was the defending national champion and ranked number 1 in the pre-season poll. The freshmen easily won the game by a score of 75–60. It was a powerful indication of things to come.\n\n", "A rule change was instituted for the 1967–1968 season, primarily because of Alcindor's towering play near the basket. The dunk shot was outlawed and would not be reinstated until the 1976–1977 season, which was shortly after Wooden's retirement. This was at least the second time that the rules committee had initiated change in response to the domination of a superstar player; in 1944, the goaltending rule was instituted to counter George Mikan's dominant defensive play near the basket. In January, UCLA took its 47-game winning streak to the Astrodome in Houston, where the Bruins met Guy Lewis' Houston squad, who had Elvin Hayes and Ken Spain, in the Game of the Century in the nation's first nationally televised regular season college basketball game. Houston upset UCLA 71–69, as Hayes scored 39 points. In a post-game interview, Wooden said, \"We have to start over.\" UCLA went undefeated the rest of the year and thrashed Houston 101–69 in the semi-final rematch of the NCAA tournament en route to the national championship. Sports Illustrated ran the front cover headline Lew's Revenge. The rout of Houston. UCLA limited Hayes to only 10 points; he had been averaging 37.7 points per game. Wooden credited Norman for devising the diamond-and-one defense that contained Hayes. The Game of the Century is also remembered for an incident involving Wooden and Edgar Lacy. Lacy was ineffective on defense against Elvin Hayes, and Wooden benched him after 11 minutes. Lacy never re-entered the game. Furious with Wooden, Lacy quit the team three days later, telling the Los Angeles Times \"I've never enjoyed playing for that man.\" UCLA's talent during the 1968 NCAA tournament was so overwhelming that they placed four players on the All-Tournament team. In addition to Alcindor, Lucius Allen, Mike Warren, and \"Lefty\" Lynn Shackelford were given accolades. Kenny Heitz was also a member of UCLA's 1968 team.\n\n", "Lew Alcindor finished his career at UCLA in 1969 with a third consecutive national championship when the Bruins beat George King's Purdue team 92–72 in the title game. The three straight titles were matched by three consecutive MVP awards in the tournament as Alcindor established himself as college basketball's superstar during the three-peat performance. Alcindor and Wooden would continue their communication even after he left UCLA. In 2017, Jabbar wrote a book, \"Coach Wooden and Me\", which details their long-standing friendship.\n\nA sportswriter commented that everybody outside of UCLA would be happy that glorious day in June when Alcindor finally graduated and college basketball could go back to the routine method of determining a national champion. This prophecy would prove to be ludicrous over the next six years. The 1970 squad proved that nobody was indispensable to the success of the UCLA program, not even Alcindor, as Sidney Wicks, Henry Bibby, Curtis Rowe, John Vallely, and Kenny Booker carried the Bruins to their fourth consecutive NCAA title with an 80–69 win over upstart Jacksonville, coached by Joe Williams. Wicks and Rowe double teamed 7-foot Artis Gilmore on defense and shut down the high-powered Jacksonville offense, which had been averaging 100 points per game. Gilmore and 5'10\" Rex Morgan had been dubbed \"Batman and Robin\" by the press.\n\nIn the 1971 NCAA championship game, Steve Patterson outscored Howard Porter of Jack Kraft's scandal-plagued Villanova squad as UCLA won 68–62. The following year, UCLA had its closest game in all of Wooden's 10 championships, beating Hugh Durham's Florida State team 81–76 to take the 1972 title. After the game, Bill Walton said, \"We didn't play well.\"\n\n\n", "Wooden with Digger Phelps in 1973, after UCLA beat Notre Dame for their NCAA-record 61st straight win\nThe 1972–1973 season was one of the most memorable campaigns in the history of UCLA basketball. Freshmen became eligible to play varsity ball again, and the Bruins went 30–0 and stretched their winning streak to a record 75 straight in breezing through the NCAA tournament by blowing out Gene Bartow's Memphis State team 87–66 in the final, as Bill Walton hit an incredible 21 of 22 field goal attempts. Walton and Wooden were everybody's Player and Coach of the Year again. Keith Wilkes, Greg Lee, and Larry Hollyfield were members of that team, and Wilkes would go on to win four NBA championships as well.\n\nUCLA's two big streaks came to an end during the 1973–1974 season. In January, the winning streak stopped at 88 games when Digger Phelps's Notre Dame squad upended the Bruins 71–70 in South Bend. Two months later, Norm Sloan's North Carolina State team defeated UCLA 80–77 in double overtime in the semifinals of the NCAA tournament. David Thompson was NC State's All-American, and Tom Burleson did an excellent job on defense against Bill Walton. UCLA had beaten the Wolfpack by 18 points early in the season, but things were different when they met in March.\n\nWooden coached what would prove to be his final game in Pauley Pavilion on March 1, 1975, a 93–59 victory over Stanford. Four weeks later, following a 75–74 overtime victory over former player and former assistant coach Denny Crum and Louisville in the 1975 NCAA Tournament semifinal game, Wooden announced that he would retire at age 64 immediately after the championship game. His legendary coaching career concluded triumphantly when Richard Washington and David Meyers combined for 52 points as UCLA responded with a 92–85 win over Joe B. Hall and Kentucky to claim Wooden's first career coaching victory over the Wildcats and his unprecedented 10th national championship. Marques Johnson and Andre McCarter were also key contributors on Wooden's final championship team. The success of Wooden's last team was particularly impressive because it had no marquee stars such as Alcindor, Walton, Hazzard, and Goodrich; the team was a group of rugged opportunists.\n\n", "Andy Hill, who was on three Bruin teams under Wooden that won NCAA championships from 1970 to 1972, decades later co-wrote with Wooden the 2001 book Be Quick—But Don't Hurry! Finding Success in the Teachings of a Lifetime. The bestseller details how Hill applied his experience as a player under Wooden to achieve success in his career as a television executive. His goal was to demonstrate the relevance of Wooden's coaching style to the business world. The book also delves into his personal relationship with Wooden as his coach and mentor.\n\nIn 2004, a 93-year-old Wooden stated that he would not mind coming back as an assistant who could help players with practices and other light duties.\n\nDuring his tenure with the Bruins, Wooden became known as the \"Wizard of Westwood\", though he personally disdained the nickname. He gained lasting fame with UCLA by winning 620 games in 27 seasons and 10 NCAA titles during his last 12 seasons, including seven in a row from 1967 to 1973. His UCLA teams also established an NCAA men's basketball record winning streak of 88 games and four perfect 30–0 seasons. They also won 38 straight games in NCAA tournaments and 98 straight home wins at Pauley Pavilion.\n\n\"He never made more than $35,000 a year salary (not including camps and speaking engagements), including 1975, the year he won his 10th national championship, and never asked for a raise\", wrote Rick Reilly of ESPN. He was given a Bruin powder blue Mercedes that season as a retirement gift. According to his own writings, Wooden turned down an offer to coach the Los Angeles Lakers from owner Jack Kent Cooke that may have been ten times what UCLA was paying him." ]

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[ "The story begins only days after the conclusion of Taran Wanderer. With winter approaching, Taran and his companion Gurgi return from their wanderings to Caer Dallben after getting news from Kaw the crow that Princess Eilonwy has returned from the Isle of Mona. Indeed, they find her at home, along with her escort King Rhun of Mona and the former giant Glew, who had been magically restored to human size by a potion from Dallben.\n\nBefore Taran can propose to Eilonwy, the bard-king Fflewddur Fflam and his mount Llyan arrive with a gravely injured Gwydion, Prince of Don. Servants of Arawn had assaulted them and seized the magical black sword Dyrnwyn. Fflewddur also states that Taran was involved in the ambush, baffling everyone. With Achren's help, the truth is determined: Arawn himself has come from Annuvin to the verge of Caer Dallben in the guise of Taran, in order to lure Gwydion into the ambush.\n\nBecause Dyrnwyn may be pivotal as a threat to Arawn, Dallben consults the oracular pig Hen Wen to determine how it may be regained. During the reading, the ash rods used to communicate shatter and the two thirds of Hen Wen's answer are discouraging and vague. When Gwydion heals sufficiently, he sets out with Taran and others to meet with King Smoit. Gwydion insists that he alone should enter Annuvin to seek the sword, but Smoit's Cantrev Cadiffor is on the way. The small party divides, as Rhun and Eilonwy intend to visit the ships of Mona en route.\n\n", "When Gwydion, Taran, and others reach Caer Cadarn, they are imprisoned by Magg, the treacherous former Chief Steward of Mona, who has entered service with Arawn and taken over the fortress. When Eilonwy approaches with the other party, she detects something amiss and they cautiously send Fflewddur Fflam to the fortress as a bard. After entertaining the soldiers for a night, he returns with the bad news. Then the companions encounter Gwystyl of the Fair Folk outside the stronghold, en route home after closing the waypost near Annuvin, personally bearing final observations to King Eiddileg about preparations for war by Arawn's forces. With Gwystyl's assistance and store of magical smokes, fires, and concealments, the companions break in and free the prisoners. The plan goes awry, however; King Smoit and his men are finally able to regain control only by Rhun's intervention, which costs his life.\n\nLearning from Gwystyl of the activities in Annuvin, Gwydion turns from the quest for Dyrnwyn to planning for battle at Caer Dathyl. Gwystyl, Fflewddur, and Taran leave to gather support, respectively from the Fair Folk, the northern realms, and the Free Commots. Kaw, sent out by Taran to reconnoiter the enemy, is attacked by Gwythaints while spying near Annuvin, but manages to reach Medwyn, who asks all the creatures of air and land to oppose the forces of Arawn. Taran, Coll, Eilonwy, and Gurgi muster the Commots, who rally to their friendship with Taran, and sends them marching in groups to Caer Dathyl while the smiths and weavers rallied by Hevydd and Dwyvach work day and night to equip them.\n\n", "Soon after Taran and the last Commots reach Caer Dathyl, King Pryderi arrives from the western realms. In council he announces his new allegiance to Arawn, for the good of all, because \"Arawn will do what the Sons of Don have failed to do: Make an end of endless wars among the cantrevs, and bring peace where there was none before.\" He is rejected utterly but permitted to return unharmed to his army, and at the next day the battle begins. Although the Sons of Don and allies initially have the best of it, the Cauldron-Born arrive en masse before evening, overwhelming the allies and razing Caer Dathyl to the ground.\n\nWith High King Math killed, Gwydion is proclaimed the new High King. With the bulk of the Cauldron-Born deployed outside of Annuvin, Gwydion determines that the best chance is to attack while it is guarded by mortal men alone. He will lead the Sons of Don to waiting ships on the north coast and attack by sea, while Taran leads the Commots to delay the Cauldron-Born's return march, as their power wanes with time and distance from Annuvin.\n\nTaran and his army are able to hold the tired Cauldron-Born warriors beyond arm's length by brute force, and turn the march from a straight and easy route into the rugged hills, although Coll dies in battle. Thanks to a company of Fair Folk, and to the animals sent by Medwyn, they destroy most of the Huntsmen who accompany and lead the undead. At last the Cauldron-Born break free of the hills and return to the lowland route. Regaining strength as they near Annuvin, it would be futile for the exhausted allies to meet them head-on again, so inevitably they take the long, easy route to Arawn's stronghold.\n\n", "Taran and the remainder of his army finally reach Annuvin by a combination of the direct route, a mountain path of Doli's, and a secret pass over Mount Dragon shown to them by Achren. Taran sees that victory is nearly in Gwydion's hands, but also that the Cauldron-Born are about to reach Annuvin. In his alarm, Taran nearly falls off Mount Dragon, but is saved by the now-grown Gwythaint he had rescued so many years ago (The Book of Three). In a desperate attempt to fight off a group of Cauldron-Born who have discovered him on the mountain, he rolls a rock at them, and discovers Dyrnwyn in the hollow the stone occupied. Wielding Dyrnwyn, Taran slays the undead warrior who approaches to slay him, and at that instant all of the Cauldron-Born die as one.\n\nTaran's group enters the fray, and the battle continues through the halls of Annuvin. Taran is almost deceived by Arawn - who has taken the guise of Gwydion - into giving up the sword. After the chaotic defeat of Arawn's forces, the companions gather before the Great Hall. Achren identifies Arawn in the form of a nearby serpent preparing to strike Taran and grabs him. He strikes her fatally, but Taran kills him with Dyrnwyn. With the death of Arawn, the stronghold of Annuvin bursts in flame and falls in ruins, destroying all of the magical implements inside; only Gurgi manages to save several scrolls containing knowledge of farming, smithing, and other crafts. The sword Dyrnwyn begins to fade, losing its magic.\n\nThe allies travel to Caer Dallben, where Gwydion tells them that in victory the Sons of Don, with all kinsmen and kinswomen, must return to the Summer Country. Indeed, all those who still have magic will depart, and the Fair Folk and Medwyn have closed their realms to outsiders. Dallben and Eilonwy must also go, and others who have served well, Taran among them, are given the chance to accompany them. Taran proposes to Eilonwy at last, and she accepts.\n\n", "The Sons of Don plan to leave the next day. However, Taran becomes uncomfortable about his decision overnight. The witches Orddu, Orwen and Orgoch appear before him and reveal that they too are departing, and leave him with an unfinished tapestry depicting his life. He realizes there is much work to be done to rebuild Prydain, and he has made many promises; so he determines to remain behind. Eilonwy is able to willingly give up her magical nature in order to remain with him, and the two are married.\n\nDallben reveals that with this last quest, Taran has completed a path prophesied in the Book of Three whereby an orphan of \"no station in life\" would succeed the Sons of Don as High King. Dallben had traveled to seek such a one and try to hasten the day of Arawn's defeat; on this journey, he found a baby, hidden in the trees beside a battlefield and without any token of parentage, and took it in under the name Taran. Taran receives many gifts, including The Book of Three itself, although its powers, like all magic in Prydain, have also faded away with Arawn's demise, leaving it only as a mere chronicle of Taran's life. With Eilonwy by his side, Taran accepts his new responsibility and is hailed by his friends and battle companions as the new High King." ]

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[ "nalized the -- I think finalized the place and we will announce that. Thank you. Gary.\nGary Zhou -- Credit Suisse -- Analyst\nOkay, thank you. Yes. So my last question is, so I know it might too early to tell, but just wondering if management can share with us your view for the kind of the longer-term polysilicon price outlook? So, for example, by 2023. So, when there may be more polysilicon capacity to be commissioned. So when do you be or where do you think the -- probably the kind of a more sustainable polysilicon price can achieve? Thank you.\nLonggen Zhang -- Chief Executive Officer\n", "I think I just answered, Philip, the question about you know the ASP of this year and next year. So yes, for 2023, 2024, really we have to considering the demand and the supply. From a supply side, we continue to see, I think China, a lot of I think existing player continue to expansion plus some new I think comer. But you have to consider that as the technology continue to improve, maybe I think in the next generation the P silicon sale to change to N sale, that's asking for high quality. So, who can produce N-type polysilicon that's most important, the market share, you can continue to have the market share. Second, we just mentioned that this is a CMC, it's a chemical manufacturing control. It's not easy for a new comer, even let's say, existing player new hopes to be the mono-silicon, I think, the structural percentage only I think around 50%. We can reach almost a 99.5%. So, I think the quality, also I think that it's a chemical, I'd say. the ramp up to reach I think the real supply, we'll call, it take a time, so I think that from supply side. From demand side, really, I can't tell you because, look at the global, I think the carbon, I think neutrality targets, I think -- we think at least, I think the compound growth rate should be around 20%. China right now, If you look at account level, distributed generation, it's a very, very -- I think potential market is very, very big. Besides of course the U.S. and China I think the trader war. I think, but I still think, New Energy, the renewable energy is the future. This is the major toll to reach the global, I think the carbon-neutrality targets. So, from I think the demand side really, Gary, you may be the expert because we really don't know. Some people they think as advice, but some people said that the 500 kilowatts maybe by 2025 and Mr. Li. I think if I'm lucky, he estimated as maybe even by 2030, 1,000 gigawatts. So, it's a need a lot of silicon, high quality silicon, it's around like 300,000 -- no, it's a 3 million tonnes -- metric tons. So, we not worry about that. ", "The reason is because we think we own the largest scale, larger scale capacity in Xinjiang, which is as soon as we finish, I think 4B, our capacity maybe around 123,000 to 130,000 tons. Then we have another new place. We are looking for maybe by the middle of the 2022 come to -- put that into -- try pull back in. It's around 1,000 tons and continue to add another 1,000 tons. We think we are -- we have the competitive edge. So that's all our I think a long-term strategic plan.\nGary Zhou -- Credit Suisse -- Analyst\nOkay. Yes. This is a very helpful and those are all the questions from me. Thank you.\nMing Yang -- Chief Financial Officer\nGreat. Thank you, Gary.\nOperator\nThe next question comes from Tony Fei with BOCI. Please go ahead.\nTony Fei -- BOCI -- Analyst\nHi. Good evening management. This is Tony from BOCI. Three questions from my side. And the first one is still regarding the industry capacity expansion. So, just yesterday, the NRDC had a conference to update on the energy consumption status in China, according to which there was -- nine provinces in China has been increased in the energy intensity in the first half of this year including Xinjiang, Qinghai, and Ningxia. So, we know these three provinces hosts most of the new capacity announced by your peers. So, do you think this will slow down their pace in terms of the new capacity expansion?\nLonggen Zhang -- Chief Executive Officer\nYes. Everybody read that -- t" ]

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[ " 1990 levels. The European Council is expected to make a final decision in December. In September, China announced a commitment to reach carbon neutrality by 2060, and, at the Beijing wind show in October, the wind industry pledged to provide more than 50 gigawatts of wind per year in China through 2025 and 60 gigawatts per year thereafter.\nIn India, Prime Minister Modi has committed to increase its renewable energy capacity to 450 gigawatts by 2030 and has committed to 40% nonfossil fuel energy by 2030 as part of the Paris Agreement. These are a few examples of the accelerating energy transition we are seeing on a global basis. According to BloombergNEF's 2020 New Energy Outlook climate scenario, to meet a well below two-degree emission scenario, which is the key aim of the Paris Agreement, over 11 terawatts of onshore and one terawatt of offshore wind would need to be installed by 2050. This represents about three times more than the economic transition scenario or their base case. Under the climate scenario, one would represent 45% of global electricity in 2050. Back to the economics of wind, according to Lazard's Levelized Cost of Energy Analysis version 14.0, the unsubsidized levelized cost of energy of the most competitive new wind projects is equal to or lower than the marginal cost of operating existing combined cycle natural gas, nuclear and coal plants. Furthermore, utility-scale wind LCOE remains at or below that of utility-scale solar on an unsubsidized basis and, in the best locations, significantly cheaper on a subsidized basis.\n", "Utility-scale wind LCOE has been reduced by 71% since 2009 according to Lazard, and we and the industry are working hard to continue to drive LCOE down and keep wind as the most cost-effective source of new energy generation. We believe the future for wind energy will continue to strengthen, given some of the recent initiatives and goals to promote the acceleration of an energy transition that I just noted. However, our current long-term goals that we have discussed publicly, including 18 gigawatts of capacity, 20% market share and $2 billion of wind revenue are based on older and more conservative industry forecasts that do not factor in these new initiatives and goals. Stay tuned as we will review and update our long-term goals in light of these new initiatives, including the optimization of our global footprint. Turning to Slide eight. We now have a total potential contract value of up to approximately $5.1 billion through 2024, and the minimum guaranteed volume under our supply agreements is $2.9 billion. This is a net decrease from $5.4 billion and no net change from $2.9 billion from last quarter as a result of extending existing contracts, offset by third quarter sales.\nThe potential and minimum contract values do not include the two lines in China that we are operating under a short-term contract this year, nor does it include the impact from some of the anticipated, new, larger-blade models that we expect to produce after the anticipated 2021 transitions or additional contract extensions. While the health and safety of our associates remains our primary objective, we remain focused on our operating imperatives, including the integration of our key ESG activities to drive profitable growth and long-term shareholder value.\nWith that, let me turn the call over to Bryan.\nBryan Schumaker -- Chief Financial Officer\n", "Thanks, Bill. Please turn to Slide 10. All comparisons made today will be on a year-over-year basis compared to the same period in 2019. For the third quarter ending September 30, 2020, net sales increased by $90.3 million or 23.5% to $474.1 million. Net sales of wind blades increased by 27.8% to $450.1 million. The increase was primarily driven by a 20% increase in the number of wind blades produced year-over-year, largely as a result of increased production at our China, Mexico, Iowa and India facilities. We estimate that our net sales were adversely impacted by approximately $8 million based upon when blade sets, which we had forecasted to produce in the period unde" ]

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[ "ing to see that the pipeline grow, where we see Micro LED becoming a really big deal in, I don't know, one to three or four years. How do you look at that?\nRussell Ellwanger -- Chief Executive Officer\nWell, we know that our customers -- I mentioned again today, our customer there is Aledia. And as I stated, I really don't want to talk about Aledia's guidance to us. Number one, it's not proper for me to. As far as Micro LED, I think it's the right way to go. I think nanowire is a very, very exciting technology. I think that Aledia has an incredible technology and very strong differentiation. But will Micro LED grow? Certainly. Is it done 2021? I don't think so. Is it 2022? I think that that will start and I think 2023, 2024 will be very big or will become very big during those years. But I don't think 2021 is going to be huge at all for that. But I think it will start to grow in '22 and will become significant in '23, '24, '25. What is your thought?\nRichard Shannon -- Craig-Hallum Capital Group LLC -- Analyst\nI'm hearing similar timeframes but just want to get your sense as well and that's helpful. I'm glad it fits roughly speaking there. So, I think that's all my questions. Thank you, Russell.\nRussell Ellwanger -- Chief Executive Officer\nThank you.\nOperator\nNext question is from David Duley a Steelhead Securities. Please go ahead.\nRussell Ellwanger -- Chief Executive Officer\nHey, David.\nDavid Duley -- Steelhead Securities -- Analyst\nHey. Thanks for taking my question. Nice results. Could you help just frame what you think or help us understand what the size of the photonics business is now perhaps in 2020, and what your goals or aspirations are for that business?\nRussell Ellwanger -- Chief Executive Officer\n", "Okay. I know exactly what it was in 2020 for us. In 2020, it was just shy of $8 million. If I look at 2021 by forecast, it's -- a substantial increase of that maybe close to 3 times increase in what we're seeing. Where do I think it will get to? I think it will get to, for us, I mean our targets would be to be in the several hundred million. So, I think that it's very possible for it get there. But yeah, that would be our target is for the photonics business to be sitting within some small amount of years, certainly upwards of $100 million. And I think with the target of getting between $200 million and $300 million.\nDavid Duley -- Steelhead Securities -- Analyst\nAnd does this -- would the photonics revenue have above-average gross margin similar to silicon germanium?\nRussell Ellwanger -- Chief Executive Officer\nPresently it certainly has well above average gross margin. It's very, very high margins at present. As anything goes into high volume, margins come down but I believe it will stay very high margin. It'll -- yeah, I think it will be among the highest margins we have in the company.\nDavid Duley -- Steelhead Securities -- Analyst\nExcellent. And then in your prepared remarks you mentioned something about a long-term contract and I had some audio difficulties and so I just don't -- could you just elaborate about what you were talking about there?\nRussell Ellwanger -- Chief Executive Officer\nIf I recall the exact statements it was -- I'm now paraphrasing, it said that as a validation to the strength of the power platforms that we have, we have multiple customers asking us for a long-term supply agreements. Now, when they're asking for a long term supply agreement that takes on some term or some type of a take-or-pay agreement to where there's a certain volume that they're committed to buy and there's a certain volume that we committed to them. Now, customer really won't give you that unless your platform's very powerful because they're committed to use that platform. So, that was the statement that I made. And to add color to it, that is color now, that it would be involving to some level a take-or-pay agreement.\nDavid Duley -- Steelhead Securities -- Analyst\nSo we would expect the customer deposit liability number to be going up over time.\nRussell Ellwanger -- Chief Executive Officer\n", "Not necessarily. A take-or-pay" ]

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[ " space that are sort of starting to mature. I think they are years away from implementation and no one's really committed to implementing them yet. So I think that's a longer-term trend that will happen in the industry that we obviously will keep track of and consider how we might evolve to it.\nBy the way, our underlying systems continue to sort of evolve to meet what I would call 5G or 3G PP kind of standards overall. In terms of the overall smartphones, obviously, I've responded to that in the last several earnings calls, told you that we believe that's a strong focus for us. You can tell in our results that we are ideally positioned for personal communications across a wide variety of areas, both stand-alone, and we believe long term in terms of supporting that in all kinds of consumer devices, including smartphones. I'm not really prepared to talk any further about sort of detailed plans on that until we're able to give plans, but we have been working on it for quite a while.\nRic Prentiss -- Raymond James -- Analyst\nThanks, guys. Continue to be well.\nMatt Desch -- Director and Chief Executive Officer\nThanks, Ric.\nOperator\nThe next question comes from Landon Park with Morgan Stanley. Please go ahead.\nLandon Park -- Morgan Stanley -- Analyst\nGreat. Thank you. And I was wondering if you could update us on the broadband side and just how you think the cadence is going to look for the full year? And maybe on the Certus 100 side, are there any particular new products that you see coming that are particularly exciting from your standpoint?\nMatt Desch -- Director and Chief Executive Officer\n", "OK. Well, broadband continues to, I think, pace our expectations here as we continue to have more products from our partners that we're able to meet more market segments like moving beyond maritime and land into aviation and government as we move down from the original sort of Certus 700 products to Certus 200 and Certus 100, we continue to see growing activations, growing adoption. I think I think we're kind of becoming the de facto L-band standard for anything non-Inmarsat in the industry, which are all the VSAT players that do not make up the sort of ViaSat Inmarsat continuum, continuing to kind of be able to be more and more cost effective to go from the larger ships to smaller ships or from commercial aircraft to general aviation and UAV. So I would say -- I'd expect continued kind of quarter-over-quarter growth, particularly as we progress through the year and into the bigger parts of the summer, and that continues to be a strong market for us.\nIt's obviously growing at double-digit rates, and we expect that will happen for a long period of time. As far as Certus 100 goes, you have the portfolios of products that our partners are putting together continue to expand. We're seeing initial activations and across a wide variety of areas from drones to devices on chips to systems on aircraft and land mobile applications. We're going to see, I think, more IoT services coming about.\nI'd say ones I'm particularly excited about, I'm excited about all of them. I think you're going to start sort of seeing that product hit the consumer segment this year and next year where anybody can sort of buy a product that could work say on the clear sheet of a small airplane or on a boat or on -- it can be portable devices, moving from sort of power devices into the portable range. So yes, I'm very bullish on what Certus 100 will kind of do to us long term. It's really a sweet spot for us.\nLandon Park -- Morgan Stanley -- Analyst\nGreat. And just one clarification on the SG&A guidance. So should we be looking at about $120 million for the full year? Is that the right number?\nTom Fitzpatrick -- Chief Financial Officer\nWell, we said it would be about 20%. So --\nLandon Park -- Morgan Stanley -- Analyst\nOK. OK. Thanks very much.\nThanks, Landon.\nOperator\nThe next question comes from Greg Burns with Sidoti & Company. Please go ahead.\n", "Greg Burns -- Sidoti and Company -- Analyst\nMorning. So in terms of the guide, maintaining the service revenue growth target, I wo" ]

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[ "In 1383, John I of Castile, husband of Beatrice of Portugal and son-in-law of Ferdinand I of Portugal, claimed the throne of Portugal. A faction of petty noblemen and commoners, led by John of Aviz (later King John I of Portugal) and commanded by General Nuno Álvares Pereira defeated the Castilians in the Battle of Aljubarrota. With this battle, the House of Aviz became the ruling house of Portugal.\n\nThe new ruling dynasty would proceed to push Portugal to the limelight of European politics and culture, creating and sponsoring works of literature, like the Crónicas d'el Rei D. João I by Fernão Lopes, the first riding and hunting manual Livro da ensinança de bem cavalgar toda sela and O Leal Conselheiro both by King Edward of Portugal and the Portuguese translations of Cicero's De Oficiis and Seneca's De Beneficiis by the well traveled Prince Peter of Coimbra, as well as his magnum opus Tratado da Vertuosa Benfeytoria. In an effort of solidification and centralization of royal power the monarchs of this dynasty also ordered the compilation, organization and publication of the first three compilations of laws in Portugal: the Ordenações d'el Rei D. Duarte, which was never enforced; the Ordenações Afonsinas, whose application and enforcement was not uniform across the realm; and the Ordenações Manuelinas, which took advantage of the printing press to reach every corner of the kingdom. The Avis Dynasty also sponsored works of architecture like the Mosteiro da Batalha (literally, the Monastery of the Battle) and led to the creation of the manueline style of architecture in the 16th century.\n\nPortugal also spearheaded European exploration of the world and the Age of Discovery. Prince Henry the Navigator, son of King John I of Portugal, became the main sponsor and patron of this endeavour. During this period, Portugal explored the Atlantic Ocean, discovering the Atlantic archipelagos the Azores, Madeira, and Cape Verde; explored the African coast; colonized selected areas of Africa; discovered an eastern route to India via the Cape of Good Hope; discovered Brazil, explored the Indian Ocean, established trading routes throughout most of southern Asia; and sent the first direct European maritime trade and diplomatic missions to China and Japan.\n\n", "In 1415, Portugal acquired the first of its overseas colonies by conquering Ceuta, the first prosperous Islamic trade centre in North Africa. There followed the first discoveries in the Atlantic: Madeira and the Azores, which led to the first colonization movements.\n\nIn 1422, by decree of King John I, Portugal officially abandoned the previous dating system, the Era of Caesar, and adopted the Anno Domini system, therefore becoming the last catholic realm to do so.\n\n\nThroughout the 15th century, Portuguese explorers sailed the coast of Africa, establishing trading posts for several common types of tradable commodities at the time, ranging from gold to slaves, as they looked for a route to India and its spices, which were coveted in Europe.\n\nThe Treaty of Tordesillas, intended to resolve the dispute that had been created following the return of Christopher Columbus, was made by Pope Alexander VI, the mediator between Portugal and Spain. It was signed on 7 June 1494, and divided the newly discovered lands outside Europe between the two countries along a meridian 370 leagues west of the Cape Verde islands (off the west coast of Africa).\n\n\n", "In 1498, Vasco da Gama accomplished what Columbus set out to do and became the first European to reach India by sea, bringing economic prosperity to Portugal and its population of 1.7 million residents, and helping to start the Portuguese Renaissance. In 1500, the Portuguese explorer Gaspar Corte-Real reached what is now Canada and founded the town of Portugal Cove-St. Philip's, Newfoundland and Labrador, long before the French and English in the 17th century, and being just one of many Portuguese colonizations of the Americas.\n\nIn 1500, Pedro Álvares Cabral discovered Brazil and claimed it for Portugal. Ten years later, Afonso de Albuquerque conquered Goa in India, Muscat and Ormuz in the Persian Strait, and Malacca, now a state in Malaysia. Thus, the Portuguese empire held dominion over commerce in the Indian Ocean and South Atlantic. Portuguese sailors set out to reach Eastern Asia by sailing eastward from Europe, landing in such places as Taiwan, Japan, the island of Timor, and in the Moluccas.\n\nAlthough for a long period it was believed the Dutch were the first Europeans to arrive in Australia, there is also some evidence that the Portuguese may have discovered Australia in 1521. From 1519 to 1522, Ferdinand Magellan (Fernão de Magalhães) organized a Spanish expedition to the East Indies which resulted in the first circumnavigation of the globe. Magellan never made it back to Europe as he was killed by natives in the Philippines in 1521.\n\nThe Treaty of Zaragoza, signed on 22 April 1529 between Portugal and Spain, specified the anti-meridian to the line of demarcation specified in the Treaty of Tordesillas.\n\nAll these factors made Portugal one of the world's major economic, military, and political powers from the 15th century until the late 16th century." ]

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[ "t it's also the worst of times, because you cannot get all the product you need when you need it. We continue to manage but I think it's fair to say there is a meaningful chunk of revenue that we could have realized in this quarter that we push out into the future quarters. And we are only seeing that trend accelerating and continue to get stronger as various European countries embark on running fiber to practically every home and we see more and more programs being rolled out and increasing number of requests coming in. So, fiber continues to be very strong. That said, we are also starting to see a lot more activity around 5G wireless deployment as plans are starting to come to fruition and major operators starting to move to start doing initial deployment. It's clearly still not as big as we expect it to be within the next six months. It's the early stage. But we are seeing the progress being made in that area as well.\nSamik Chatterjee -- JPMorgan -- Analyst\nThat's great. And Oleg, if I can follow up, if you can give us an update on where the processes with EXFO, relative to the different actions you've taken there, what do you think are kind of next steps and as a side note, you have been building cash, you're generating quite a substantial amount of cash now on a yearly basis. Outside of EXFO, what else is kind of in thought process or alternatives that you could explore to use the cash that you're generating?\nOleg Khaykin -- President and Chief Executive Officer\n", "Well, I mean, the cash is not burning hole in our pockets. I mean we remain very disciplined. I mean, in the case of EXFO, devaluation put forward by the Chairman and Founder of the company was a no-brainer for us and we knew full ahead fundamentally there is no deal unless Germain Lamon decides to sell, but we felt it was compelling and necessary for us to put a strong offer on the table to signal the value of the business because it's effectively it's our business as well. And the bullishness with which we view that environment and we will see tomorrow I think is the day when their shareholders get to vote. If they vote to -- majority of the minority shareholders vote to decline the offer, then maybe there'll be further discussions. If they vote to accept it, then they get what they deserve, which is selling their shares subpar. So I mean, there's really not much more to it. In the end, it's really very much up to the Chairman and Founder, what he wants to do with the company. But we felt we owed it to our shareholders to signal that we're not afraid to be aggressive and put an offer on the table. And there are other targets potentially out there and in due time, we'll bring them up to the forefront as well.\nSamik Chatterjee -- JPMorgan -- Analyst\nGreat, thank you. Thanks for taking my questions.\nOleg Khaykin -- President and Chief Executive Officer\nSure. Thanks.\nOperator\nYour next question comes from the line of Alex Henderson with Needham. Your line is open.\nAlex Henderson -- Needham -- Analyst\nThanks. I was hoping you could talk a little bit about the magnitude of the impact from the supply chain challenges. To what degree, your order rate is above 1.0 and how much of that you might have been able to ship had you had the product and any granularity around which particular products were the most impacted?\nOleg Khaykin -- President and Chief Executive Officer\n", "Thank you Alex. Well, I mean the order rate in fourth quarter was significantly above 1 point. I mean -- and by significant I mean by big margin right, which -- we always caution people about book-to-bill ratio because remember a lot of our products are shipped within the same quarter. So clearly, when you have a very big book-to-bill index, it just basically tells you have a pretty good start in the first month of the next quarter. And usually -- especially in NSE most of our products in NE in particular are shipped within three to four months. So it's all going to ship -- a big chunk of it is book ship. The shortages that we see, I mean whereas we are able to pretty much manage most things pretty w" ]

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[ "other growth year for CEVA as the momentum in our business continues. We are forecasting total revenue to be just over $106 million -- $106 million for 2021 with growth in both royalties and licensing. Specifically, in regard to royalty revenue forecast, we are taking a wait and see approach, as the semiconductor industry has experienced extended lead times for chip orders and lean inventories, which we expect to last through the first half of the year.\nOur licensing business continues to be solid with growing opportunities in 5G, Wi-Fi 6, TWS earbuds and automotive, as Gideon earlier elaborated earlier. We are targeting another record year for licensing, which will set the stage for additional new streams of royalties in the years to come. On the royalty front, we are expecting a decline in royalties from a leading smartphone OEM, who has switched to another baseband supplier for its recently launched 5G smartphone lineup.\nWith that said, we do maintain our presence in its 4G smartphones that are still expected to ship volume this year. We also see continued progress for our China-based customer, who has recently regained good momentum in low cost smartphones for emerging markets, and has also recently launched its first CEVA-powered 5G chip in China. In our base station and IoT product category, we expect to continue to outgrow the markets we are targeting. Overall, we believe that new royalty growth drivers will more than offset the decline in royalties from the 5G smartphone supplier switch.\nOn the expense side, we forecast approximately $3 million additional expenses in 2021 versus 2020 that relates to the devaluation of the US dollar compared to other currencies that we use mainly the shekels and euros. On the cost of goods, we expect higher non-GAAP expenses of approximately $0.5 million due to more sensor fusion chip sales and other project expenses.\n", "On opex, with our strong licensing execution in 2020 and even stronger expectations for 2021, we will continue to support these new customers and reinforce our leadership with disciplined investments in R&D. Overall, non-GAAP opex increase will be approximately $6 million, half of it, $3 million is attributed to the FX, as I stated. Equity-based compensation is forecast to be approximately the same as 2020, around $13.3 million. Annual gross margins are forecasted to be similar to 2020, in the region of 89% on a GAAP basis and 91% on a non-GAAP basis.\nInterest income is forecasted to be lower than 2020 due to lower interest rate environment at around $600,000 per quarter. Tax rate is expected to be higher on an annual basis due to higher taxes in France for our RivieraWaves business, Bluetooth and Wi-Fi. Approximately 22% of pre-tax income on a non-GAAP basis, this is compares to 2020 level excluding $3 million of expenses due to withholding taxes, which could not be utilized in future years. Last, share count for 2021 is expected to be approximately 23.5 million shares.\nSpecifically for the first quarter of 2021. Gross margin is expected to be approximately 89% on a GAAP and 91% on a non-GAAP basis. Opex for the first quarter is expected to be slightly higher than the fourth quarter of 2020. Non-GAAP opex is expected to be in the range of $23.2 million to $24.2 million. Of our anticipated total operating expenses for the first quarter, $3.1 million is expected to be attributable to equity-based compensation expenses and $0.6 million to amortizations.\nOur non-GAAP opex for the first quarter is forecasted to be in the range of $19.6 million to $20.6 million. Net interest income that is expected to be about $600,000. Taxes for the first quarter a bit higher, they're staying $0.5 million in both GAAP and non-GAAP basis. And share count for the first quarter is expected to be around 23.3 million shares.\nNicole, you could now open the Q&A session, please.\nQuestions and Answers:\nOperator\n", "We will now begin the question-and-answer session. [Operator Instructions] Our first question today will come from Matt Ramsay with Cowen. Please go ahead.\nMatt Ramsay -- Cowen -- Analyst\n" ]

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[ "5G cores and we're in the process of doing First Office Applications and pilots and things like that before going into production in the next six to 12 months. So it's a hardware expansion opportunity today and over the next 12 months, it will move to be a software opportunity in 5G cores for F5.\nSamik Chatterjee -- J.P Morgan -- Analyst\nOkay. Got it. Francois, just as a follow-up. Looking at the growth trends across the different geographies, I'm just trying to get a better sense of the variability we are seeing, like Americas was a strong growth -- strongest growth geography for you last quarter. It's moderated significantly in terms of the growth rate while still growing, whereas EMEA and APAC aren't driving the growth this quarter. Is it like something on the ground that's impacting it in terms of like sales force, etc., like what's really driving that amount of variability in the performance by geography?\nFrancois Locoh-Donou -- President, Chief Executive Officer and Director\nThere isn't really anything of note. I would say the service provider vertical, we had some important expansions in EMEA and APAC that help drive the growth there. but I wouldn't put too much into the quarter-to-quarter variability into the geographies. Overall, Samik, we're -- the strength in demand that we are seeing both in hardware and in the software subscriptions that I've talked about that is across the board and across geographies.\nSamik Chatterjee -- J.P Morgan -- Analyst\nThank you. Thanks for taking the questions. Certainly. Your next question comes from Alex Henderson from Needham.\nAlex Henderson -- Needham & Company -- Analyst\n", "Thank you very much. So I was hoping you could talk a little bit about the transition to hardware in the context of the launch of the integration of the Beacon technology in a platform last year in the spring, which doest tie in the Kubernetes-NGINX oriented products back to the BIG-IP and to what extent you may be seeing some refresh there in those systems because the admin -- IT administrator, the CIO is able to bring some control back into the DevOps process and use that integration between the BIG-IP to the NGINX product to put guardrails in front of the DevOps people. Is that part of what's going on here as well or is it just simply that last year, you couldn't do installs because things were so locked down, but the installed base you've gauged in your report needed upgrade, is it -- could you give us a little bit more clarity around that?\nAnd then the other piece to that is with Kubernetes' adoption according to recent plug thorough and numbers -- the 2x what it was a year ago and 96% of that -- of companies saying they're going to go with multi-cloud, can you talk a bit about what kind of integration you're doing with Hashi and partnering -- how your partnership with HashiCorp is starting up? Thanks.\nKara Sprague -- Executive Vice President and General Manager, BIG-IP\nHi, Alex, it's Kara.\nAlex Henderson -- Needham & Company -- Analyst\nOkay\nKara Sprague -- Executive Vice President and General Manager, BIG-IP\nI'll start on the -- good to talk to you. On the transition to hardware, I mean we talked through a number of factors that are driving the strength and the robust demand that we're seeing in hardware today. One of those factors I do believe is around the strength of the portfolio is coming together and customers are seeing F5's relevance in modern applications and strong relevance in security use cases. And certainly, that's playing into some of what we're seeing. But I have to -- I really do think if you go back to the script and what Francois has already addressed in the questions, the robust demand that we're seeing is really more of the latter -- that latter factor that you described. So that at least the answer to your first question.\n", "On the second question in terms of what we're doing with Hashi. We have a partnership with Hashi. We have several integrations in the BIG-IP space around various elements including we make strong use of Terraform integrations to enable automation for our customers " ]

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[ "ng demand in the long dormant automotive test market with orders for our Eagle Test product lines surging. Smartphone shipments are expected to grow in 2021 after contracting about 10% in 2020 and 5G content should increase. On the other hand, the SOC test market in China will likely be down in 2021 due to the expanded and full year effects of trade restrictions that were widened in 2020. Also as always, tester demand from our largest customer will remain opaque until some time in Q2. Additionally, the global economic impact of COVID and its impact on electronics demand after a surge in 2020, It's hard to forecast with arguments for both positive and negative effects.\nTaking all of that into account, we have a bit wider range in our SOC market size estimate for 2021 at $3.3 billion to $3.8 billion, up slightly from 2020 at the midpoint. In Memory Test, the transition to LPDDR5 and DDR5 should gain momentum in 2021 and beyond. After growing about 50% in 2020, we view the memory market to be in the $800 million to $1 billion range in 2021about even with 2020 at the midpoint.\n", "In Storage Test, the underlying demand drivers of increased density and HDD and increased complexity in Semi Devices driving system level test remain in place. However, visibility is limited and annual shipments can be very lumpy. After more than tripling over the last 3 years, we expect 2021 sales to be in a band of plus or minus 20% from the 2020 level. For the rest of our test businesses, we expect growth in the 5% to 10% range in 2021. In Industrial Automation, 2021 is starting off on a strong footing. Barring any additional COVID related manufacturing sector shutdowns, we expect to deliver the highest ever first quarter sales in each of our automation businesses and we are well positioned to grow in excess of 30% for the year. 2020's results reflect well on Teradyne strategy, execution, and efficiency. Our test businesses show the successful results of R&D bets in years past, and enable us to increase those bets for the future. Our industrial automation investments continue undeterred by short-term impacts of COVID and we are well positioned to capitalize on a world emerging to invest even more in automation to improve resilience and productivity. Equally significant, 2020 shows the resilience of Teradyne employees, our global suppliers, and our operating model. In the face of unimaginable challenges across communities worldwide, the team dealt with health, safety, and operation obstacles daily, met R&D milestones, executed steep new product ramps, and delivered record shipments of SOC, memory and storage test products to meet our customers' needs. We did all this while exercising the cost and schedule discipline expected at Teradyne. This is truly extraordinary and I am very grateful to be part of such a powerful team.\nAs we move into 2021, the outlook appears bright across all our markets. As Sanjay will detail, we are returning to our share repurchase program and have an active M&A pipeline. As 2020 taught us, no matter what comes our way in the short term, I am confident our global team and market strategy will deliver exciting long-term returns for our customers, investors, and employees. Sanjay will now take you through the financial and modeling details. Sanjay?\nSanjay Mehta -- Vice President, Chief Financial Officer\n", "Thank you, Mark. Good morning, everyone. Today, I'll cover the financial highlights of Q4 and review the financial details of 2020. Looking forward, I'll provide our Q1 outlook, an update to our mid-term earnings model, and our capital allocation plans. Now to Q4.\nRevenues were $759 million, which were $19 million above the high end of the guidance range. We delivered a non-GAAP operating profit of 30% and EPS of $1.10. Semi Test revenue of $524 million was driven by SOC and Memory Test demand enabling 5G handsets and higher speed flash and DRAM devices. System test group had revenue of $104 million down quarter-over-quarter driven by lower Storage Test shipments. Industrial automation or IA revenue of $92 million had a seasona" ]

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[ "o look closely at our cost structure and to be more efficient as a company. That's -- one always has to do that in a crisis, and just thinking about our core beliefs and what do we want to do. And we came to a conclusion that, that the right move was actually to continue to expand rapidly, continue to invest in the future and in new technologies, even though it is risky. And we've talked to some of our key investors, and they support that approach as well. So I think that there's clearly an uncertain future ahead. It's a bit of a bumpy road. But I think the long-term prospects are extremely good. Anything you guys want to add?\nZachary J. Kirkhorn -- Chief Financial Officer\nYeah, I agree with that, Elon. The prioritization on the key projects will enable us to execute more efficiently and faster on them, which I think is great. The other one that I would add is, it's always been our vision at Tesla to improve the customer experience and make that as digital as possible.\nElon Musk -- Co-Founder and Chief Executive Officer\nYeah. Touchless delivery.\nZachary J. Kirkhorn -- Chief Financial Officer\nYeah, So touchless delivery, mobile service touchless sales has been something that we've been very focused on and made a lot of progress on.\nElon Musk -- Co-Founder and Chief Executive Officer\nYeah. Tesla is the only car that you can literally order in less than five minutes on your phone, you can order a car and have it delivered to your doorstep with all the paper and everything done. That's it. Effortless.\nZachary J. Kirkhorn -- Chief Financial Officer\nAnd many customers do that.\nElon Musk -- Co-Founder and Chief Executive Officer\n", "And they're doing it, yes. In fact, a big part of it is just trying to communicate to people that this is something you can do, because normally, buying a car is quite a pain -- for most people, they would rather go to the dentist than buy a new car. Actually, my dentist is very -- but it's really like quite an arduous thing. When the typical retail experience for buying a new car is more painful to people than having a root canal done, you have to say, well -- and for Tesla, it is completely as easy as ordering something from the Apple App Store or something on Amazon and, except it's a car. Yeah. All right. And five minutes is a, if you really went fast, I think you could order a car probably in 90 seconds, so.\nMartin Viecha -- Senior Director for Investor Relations\nThank you. The next question from institutional investor is, can you give us a brief preview of the Battery Day by generally highlighting steps Tesla is taking to improve self energy density and time line for introduction?\nElon Musk -- Co-Founder and Chief Executive Officer\nYeah. Actually, we were just -- we don't want to pre-empt Battery Day. We want to -- leave the exciting news for that day, but there will be a lot of exciting news to tell. And I think it would be one of the most exciting days in Tesla's history and we're just trying to figure out the right timing for that. We think probably the right timing will be the -- probably the third week of May. Not giving a firm date, but we think that probably that's the right timing. And depending upon what we're allowed to do, it will either be in California or Texas.\nMartin Viecha -- Senior Director for Investor Relations\nOkay. And the last question from institutional investors, could you please update on progress stores development and commercialization of Full Self-Driving? How much revenue have you recognized so far?\nZachary J. Kirkhorn -- Chief Financial Officer\nSo there is a couple of things on the financials for Full Self-Driving. And so, currently, in North America, it's sold for $7,000 as an option. We take roughly half of that as revenue, and the other half of it goes into deferred revenue. That's associated with features that will be released with time.\n", "Our deferred revenue balance is continuing to grow. It's a little bit over $600 million. And so as we release features with time, at the end of every quarter, we take a look at what features have been released, associated value an" ]

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[ "you thinking some of these international awards could continue to trend, especially given the focus that you have here on growing international backlog while the U.S. takes time to recover?\nSean Hunkler -- President and Chief Executive Officer\nWe certainly see the opportunities in Europe for sure. We see opportunities in Southeast Asia, in Africa and pretty much all around the globe, where we have boots on the ground. In addition, because of the HX acquisition, we think it's going to help really open up the market in China as well. And it's also going to help us in other markets to have a really high quality 1P Tracker from HX as well.\nSo we're really, frankly speaking, we're excited about the opportunities around the globe. The new opportunities that we talked about came from Southeast Asia, came from Africa. And as I mentioned before, our pipeline is up to 64 gigawatts and half of that now is international, 20% growth internationally so far this year. And we're really quite excited about that.\nLet me also have Patrick Cook, our chief commercial officer comment.\nPatrick Cook -- Chief Commercial Officer\nYeah, from our perspective, what we're seeing, I'd say, in the last three to four months, definitely an uptick in activity in the European market. And we've had a team on the ground there for about a year developing relationships and partnerships with folks in that region, similar what we did in Southeast Asia, sub-Saharan Africa and Australia. And so we've definitely seen an uptick in the level of activity in terms of bidding in that region, and we hope to be able to take advantage of that activity in terms of project wins because we have those relationships with the EPCs and developers.\nJulien Dumoulin-Smith -- Bank of America Merrill Lynch -- Analyst\n", "And then maybe can we talk a little bit about the -- just the EBITDA trend here and balance sheet a little bit further? Just how are you thinking about the cash burn rate? Obviously, in the quarter, you saw some working capital outflow contribute alongside EBITDA burn. Can you talk about how you see that trending in 2Q and 3Q? Obviously, you're talking about an improvement here in the third-quarter timeframe here, obviously, pulling back guidance in the context of having a little bit less clarity in the near-term. So I appreciate the opacity to the situation, but how are you thinking about sort of managing the liquidity side of this? Obviously, 2Q with an EBITDA burn, how do you think about AR in 2Q? And how do you think about the levers that you have as you think about 3Q even?\nSean Hunkler -- President and Chief Executive Officer\nSo we're definitely seeing progress in AR. I mentioned before at the end of Q1, we had $130 million in receivables, and we've made really good progress in terms of collections on those receivables. And definitely, we'll see a continued improvement in cash. And so honestly speaking, I feel good about the improvement we made even so far in the current quarter, and I expect it to continue.\nIn addition, we also have the $100 million revolver. It's completely undrawn, and so we have that as well. And again, I feel good about the progress we've made in terms of cash and we'll continue to make. Let me let our CFO, Phelps Morris comment on that as well.\nPhelps Morris -- Chief Financial Officer\nYeah. So as Sean mentioned, right, we had some timing issues at the end of Q1, where a number of invoices were due. We've done a really good job on collecting those as we moved in this quarter. We do anticipate for this quarter Q2 that we will be able -- a net increase in terms of cash despite the guide in terms of the negative EBITDA.\nSo as we talk about with the kind of the second half, just ranges in terms of margins, we do anticipate margins to increase sequentially throughout the year. And so we do have multiple levers, as Sean mentioned, untapped revolver, etcetera, that will help us manage through any liquidity issues.\nSean Hunkler -- President and Chief Executive Officer\n", "So the other thing, too, I would add, Julien is we -- obviously, we have a lot of focu" ]

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[ "t off, I just want to just talk on systems growth and what you've seen so far it sounds to be much better than the Horizon 2 all the long-term target. So you just remind us what is driving that growth? And should we think what this means for Horizon 2 growth for the systems?\nFrancois Locoh-Donou -- President, Chief Executive Officer and Director\nYes, I mean -- the, what's driving the systems growth. I think, there are few micro sectors in the sense that I think the IT spending environment right now is fairly healthy and there is also a lot of consumption of digital services by consumers and that in turn is fueling growth in application. So growth in demand for application. I would say that is kind of the biggest micro factor because what we see is a lot of our customers when they're refreshing their appliances, they don't go just for a refresh, they go for refresh and capacity expansion and sometimes it's capacity expansion and transformation because they want to move in a private cloud environment and that's driven by there just more traffic and more usage of it even their traditional applications. We see, as I said earlier, growth with digital and fast service providers and for them the growth comes from -- they're are sometimes their services, but demand for their services whether it's collaboration platforms or e-commerce platforms or even SaaS providers, the demand for their services are growing rapidly and we are built into their infrastructure and so that drives demand for our hardware, our systems into their infrastructure.\n", "And I would say, generally there is also a fundamental change in stance, Amit, from when you go back three, four years ago. I would regularly hear from customers four years ago, look we don't want to buy more hardware because we're going to move everything to the cloud, we're going to be out of our data centers. We've got to figure out our architecture, and at the time we said there was a pause because people were thinking their architecture. There is not a single CIO that has told me this in the last 12 months. Every one of them -- I think a lot of people have learned from the first implementations in public cloud, sometimes the cost and time associated with refactoring applications. And generally, I think people are more comfortable that they're going to be in a hybrid environment for a very, very long time to come. It's not forever. And so they're comfortable growing their on-prem presence with hardware where it makes sense and leveraging the public cloud for other initiatives. And I think that that halo, that environment is very different than it was four years ago.\nAnd then the last factor that has an impact on our systems business, I mean it is security. I said earlier that we had very strong growth in SaaS security with Shape subscription, security with NGINX. But we also have very healthy double-digit growth in hardware security and that's because the -- all of these apps need to be secured and customers are aware of the risks, so they're moving forward with application security.\nAmit Daryanani -- Evercore ISI -- Analyst\nGot it. that is really helpful. If I could just maybe ask you to clarify a little bit more for me. I think a lot of folks tend to think that if the software business grows 35%, systems has to be planned, its a bit of a either [Indecipherable] sometimes for people. Is it fair to say given what you just outlined with hybrid being the reality that you could have systems growth and software growth be more durable over time versus not?\nFrancois Locoh-Donou -- President, Chief Executive Officer and Director\n", "Yes, is the potentially a possible scenario. I would separate though. When you look at our software business, you've got NGINX and Shape, and I don't think there's any relationship between the growth of that part of our software portfolio and the growth in hardware. When you look at BIG-IP per se, this is where we have seen and we try to continue to see some customers that we would have expected to have moved to software form factor right now that are delaying or reconsid" ]

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[ "itioned to navigate through that. We definitely have the technology that is needed to make that lift in China. And our numbers there continue to look very strong.\nSo, it's a great part of the portfolio. It definitely is an opportunity to kind of enrich the technology within those phones. They're still a little bit lighter than some of the flagships that we have in the U.S. But we have to know how to do it.\nThe other thing about the China market is they want integration. They want labs to fast types of products. They want our applications engineers. They need people that can make the job easier for them and fulfill a smooth transition to the consumer.\nSo, all that stuff around the edges, that's our bread and butter. So, we are a great advocate there, and we're a great partner to those OEMs.\nHarsh Kumar -- Piper Sandler -- Analyst\nThanks, Liam.\nOperator\nThank you. Your next question comes from the line of Timothy Arcuri from UBS. Please proceed with your question.\nTimothy Arcuri -- UBS -- Analyst\nThanks a lot. Kris, now that the fiscal year is over, can you give us a sense of what your top customer was for fiscal '21?\nKris Sennesael -- Chief Financial Officer\nYes. The top customer came in at 59% of total revenue on a full-year basis. By the way, in Q4, that was approximately the same 59%, which is slightly up from the Q4 of fiscal '20, which was at 56%. But of course, you have to take into account the timing of the launch of some of the new smartphone platforms there.\n", "I mean, this is a big number, but it really underscores the deep customer engagement that we have with this customer, by the way, not only in their smartphone lineup but almost in every other product that they have and that they sell, you will find Skyworks inside. Also, in Q4, the quarter we just closed, the Skyworks team really executed well, supporting the launch and the ramp of a new smartphone platform that yet again, for now almost 10 or 13 times in a row, we were able to obtain higher dollar content per phone as witnessed by the tier downs that came out when the phone came out. And you can see when you look at the tier downs, we really provided multiple high-performance, very complex, highly integrated solutions, multiple sockets in that form that includes, in many cases, multiple best-in-class filters, including TC-SAW and bulk acoustic wave technology across the transmit chain, the receive chain, as well as many other functionalities, including GPS and WiFi, of course. So, great execution there by the team.\nTimothy Arcuri -- UBS -- Analyst\nThanks a lot for that, Kris. I guess as my follow-up, there's kind of a lot of noise in the China market. I know that you don't have as much exposure to the domestic market or at least the Chinese OEMs as some of your peers do, but there's some diverging data points. I mean, end market sell-through is not great.\nBut definitely, the high tier seems pretty tight. So, can you just talk about what you're seeing in China maybe -- and maybe you can have a distinction between sell-in and sell-through? Thanks.\nLiam Griffin -- Chairman, Chief Executive Officer, and President\nYeah. I mean, the China market is important to us, and we've played that quite well. We have great partnerships with all the leading brands. I think the key here, and Kris kind of mentioned it, it's all about performance.\nIt's not just -- it's not phone to phone, it's technology to technology. And you see a very, very different technology in the higher-end players in China, where they are embracing the kinds of increasingly complex signals that Kris mentioned, using bulk acoustic wave, using our TC-SAW, using an integrated approach, a Sky5 approach. In that side of the field, it's great, and we have a tremendous opportunity. We're continuing to grow the content because the complexity is going up.\n", "The complexity is what's driving the content. So, we're making that adoption happen rapidly depending -- independent of market conditions. And we're also trying to uplift the lower end. There's still a pretty high percentage of lower-end phones in China that we" ]

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[ "other growth year for CEVA as the momentum in our business continues. We are forecasting total revenue to be just over $106 million -- $106 million for 2021 with growth in both royalties and licensing. Specifically, in regard to royalty revenue forecast, we are taking a wait and see approach, as the semiconductor industry has experienced extended lead times for chip orders and lean inventories, which we expect to last through the first half of the year.\nOur licensing business continues to be solid with growing opportunities in 5G, Wi-Fi 6, TWS earbuds and automotive, as Gideon earlier elaborated earlier. We are targeting another record year for licensing, which will set the stage for additional new streams of royalties in the years to come. On the royalty front, we are expecting a decline in royalties from a leading smartphone OEM, who has switched to another baseband supplier for its recently launched 5G smartphone lineup.\nWith that said, we do maintain our presence in its 4G smartphones that are still expected to ship volume this year. We also see continued progress for our China-based customer, who has recently regained good momentum in low cost smartphones for emerging markets, and has also recently launched its first CEVA-powered 5G chip in China. In our base station and IoT product category, we expect to continue to outgrow the markets we are targeting. Overall, we believe that new royalty growth drivers will more than offset the decline in royalties from the 5G smartphone supplier switch.\nOn the expense side, we forecast approximately $3 million additional expenses in 2021 versus 2020 that relates to the devaluation of the US dollar compared to other currencies that we use mainly the shekels and euros. On the cost of goods, we expect higher non-GAAP expenses of approximately $0.5 million due to more sensor fusion chip sales and other project expenses.\n", "On opex, with our strong licensing execution in 2020 and even stronger expectations for 2021, we will continue to support these new customers and reinforce our leadership with disciplined investments in R&D. Overall, non-GAAP opex increase will be approximately $6 million, half of it, $3 million is attributed to the FX, as I stated. Equity-based compensation is forecast to be approximately the same as 2020, around $13.3 million. Annual gross margins are forecasted to be similar to 2020, in the region of 89% on a GAAP basis and 91% on a non-GAAP basis.\nInterest income is forecasted to be lower than 2020 due to lower interest rate environment at around $600,000 per quarter. Tax rate is expected to be higher on an annual basis due to higher taxes in France for our RivieraWaves business, Bluetooth and Wi-Fi. Approximately 22% of pre-tax income on a non-GAAP basis, this is compares to 2020 level excluding $3 million of expenses due to withholding taxes, which could not be utilized in future years. Last, share count for 2021 is expected to be approximately 23.5 million shares.\nSpecifically for the first quarter of 2021. Gross margin is expected to be approximately 89% on a GAAP and 91% on a non-GAAP basis. Opex for the first quarter is expected to be slightly higher than the fourth quarter of 2020. Non-GAAP opex is expected to be in the range of $23.2 million to $24.2 million. Of our anticipated total operating expenses for the first quarter, $3.1 million is expected to be attributable to equity-based compensation expenses and $0.6 million to amortizations.\nOur non-GAAP opex for the first quarter is forecasted to be in the range of $19.6 million to $20.6 million. Net interest income that is expected to be about $600,000. Taxes for the first quarter a bit higher, they're staying $0.5 million in both GAAP and non-GAAP basis. And share count for the first quarter is expected to be around 23.3 million shares.\nNicole, you could now open the Q&A session, please.\nQuestions and Answers:\nOperator\n", "We will now begin the question-and-answer session. [Operator Instructions] Our first question today will come from Matt Ramsay with Cowen. Please go ahead.\nMatt Ramsay -- Cowen -- Analyst\n" ]

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[ "hat you've heard in our prepared remarks and what Kishore shared already. I do feel confident that you're going to continue to see growth there. I mean, as I look into next year, we're continuing to see really nice growth in that business from a year-over-year perspective. And so supply chain constraints are going to push some of that to the back half of the year and into '22. But I mean, we're seeing very solid demand in '22 already.\nBill Peterson -- JP Morgan -- Analyst\nThat's really good color. Maybe more specifically coming to the infrastructure and in particular access. We're hearing more about O-RAN coming. You kind of mentioned the Facebook opportunity, on one hand it feels like it's still few years away, but I guess, when do you really expect some of these O-RAN developments to start and how is MaxLinear positioned, you talked about the 8x8, but obviously, we've seen some announcements from some of your peers that they're working closely with some of the compute companies or other companies that have already sort of started some initial O-RAN deployments?\nKishore Seendripu -- Chairman, President and Chief Executive Officer\nBill, obviously, we are working with all of those. If you're on the Facebook Evenstar program they're all natural allies and partners, and cool developers on the full solution. And so as being selected at the front end transceiver DFE, O-RAN single chip or macro base station applications, we are a big part of that game plan. Regarding things pushing out to years on shipment, my gosh, I mean we have been investing for three years now in wireless infrastructure and it seems like this is the nature of the beast.\n", "O I think that if you are going to invest infrastructure and this is good in the optical side as well, is that you are in for the long haul. We are committed. The TAM is wonderful. It's very high quality product that really very complementary to our great engineering skills. And so we are in this for real and for the long-term. So while we live in this quarterly world of earnings this thing, my focus is the long-term and I think we should feel really, really good because we combine the analog RF mixed signal capabilities with really high end at the tip of the spear, 5-nanometer technology capabilities. I dare say among the players that are present today in this ecosystem, maybe there have been future ones. You can't pick anybody who can match it right now, right? It's a matter of getting into the customer and getting the sales to ramp and that's going to take at their pace, and that's OK. I've been patient now for 15 years in my life, I got 15 more to go.\nBill Peterson -- JP Morgan -- Analyst\nIt's good to hear that you're comparative in the space, and we look forward to seeing the progress. Thank you.\nKishore Seendripu -- Chairman, President and Chief Executive Officer\nThanks, Bill.\nOperator\nThank you. Our next question comes from Sam Peterman with Craig-Hallum Capital Group. Please proceed with your question.\nSam Peterman -- Craig-Hallum Capital Group -- Analyst\nHi, guys. Sam on for Richard here. Thanks for taking my questions. I want to ask about MIMO. I'm curious what kind of share you guys think you can get with your SoCs from MIMO, particularly the 8x8 that you're coming to market toward the leading edge with you've named Texas Instruments, maybe [Indecipherable] your biggest competitors. Curious how you expect share to shake out and does Nokia ramping the recharge SoCs in 2021 effect at all? Thanks.\nKishore Seendripu -- Chairman, President and Chief Executive Officer\n", "You ask a very, very hard question, because nobody is shipping 8x8 right now, have some design wins been awarded, yes. And you really need to keep in mind that the Chinese OEMs are not part of the configuration right now for the most part for anybody, they are now reverting to the older platforms and shipments given the the regulatory restrictions, trade restrictions that both Huawei has been put under.\nSo now the whole dynamic has changed, and 8x8 is going to be driven by the western OEMs, and the Japanese and the Korea" ]

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[ "o look closely at our cost structure and to be more efficient as a company. That's -- one always has to do that in a crisis, and just thinking about our core beliefs and what do we want to do. And we came to a conclusion that, that the right move was actually to continue to expand rapidly, continue to invest in the future and in new technologies, even though it is risky. And we've talked to some of our key investors, and they support that approach as well. So I think that there's clearly an uncertain future ahead. It's a bit of a bumpy road. But I think the long-term prospects are extremely good. Anything you guys want to add?\nZachary J. Kirkhorn -- Chief Financial Officer\nYeah, I agree with that, Elon. The prioritization on the key projects will enable us to execute more efficiently and faster on them, which I think is great. The other one that I would add is, it's always been our vision at Tesla to improve the customer experience and make that as digital as possible.\nElon Musk -- Co-Founder and Chief Executive Officer\nYeah. Touchless delivery.\nZachary J. Kirkhorn -- Chief Financial Officer\nYeah, So touchless delivery, mobile service touchless sales has been something that we've been very focused on and made a lot of progress on.\nElon Musk -- Co-Founder and Chief Executive Officer\nYeah. Tesla is the only car that you can literally order in less than five minutes on your phone, you can order a car and have it delivered to your doorstep with all the paper and everything done. That's it. Effortless.\nZachary J. Kirkhorn -- Chief Financial Officer\nAnd many customers do that.\nElon Musk -- Co-Founder and Chief Executive Officer\n", "And they're doing it, yes. In fact, a big part of it is just trying to communicate to people that this is something you can do, because normally, buying a car is quite a pain -- for most people, they would rather go to the dentist than buy a new car. Actually, my dentist is very -- but it's really like quite an arduous thing. When the typical retail experience for buying a new car is more painful to people than having a root canal done, you have to say, well -- and for Tesla, it is completely as easy as ordering something from the Apple App Store or something on Amazon and, except it's a car. Yeah. All right. And five minutes is a, if you really went fast, I think you could order a car probably in 90 seconds, so.\nMartin Viecha -- Senior Director for Investor Relations\nThank you. The next question from institutional investor is, can you give us a brief preview of the Battery Day by generally highlighting steps Tesla is taking to improve self energy density and time line for introduction?\nElon Musk -- Co-Founder and Chief Executive Officer\nYeah. Actually, we were just -- we don't want to pre-empt Battery Day. We want to -- leave the exciting news for that day, but there will be a lot of exciting news to tell. And I think it would be one of the most exciting days in Tesla's history and we're just trying to figure out the right timing for that. We think probably the right timing will be the -- probably the third week of May. Not giving a firm date, but we think that probably that's the right timing. And depending upon what we're allowed to do, it will either be in California or Texas.\nMartin Viecha -- Senior Director for Investor Relations\nOkay. And the last question from institutional investors, could you please update on progress stores development and commercialization of Full Self-Driving? How much revenue have you recognized so far?\nZachary J. Kirkhorn -- Chief Financial Officer\nSo there is a couple of things on the financials for Full Self-Driving. And so, currently, in North America, it's sold for $7,000 as an option. We take roughly half of that as revenue, and the other half of it goes into deferred revenue. That's associated with features that will be released with time.\n", "Our deferred revenue balance is continuing to grow. It's a little bit over $600 million. And so as we release features with time, at the end of every quarter, we take a look at what features have been released, associated value an" ]

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[ "t off, I just want to just talk on systems growth and what you've seen so far it sounds to be much better than the Horizon 2 all the long-term target. So you just remind us what is driving that growth? And should we think what this means for Horizon 2 growth for the systems?\nFrancois Locoh-Donou -- President, Chief Executive Officer and Director\nYes, I mean -- the, what's driving the systems growth. I think, there are few micro sectors in the sense that I think the IT spending environment right now is fairly healthy and there is also a lot of consumption of digital services by consumers and that in turn is fueling growth in application. So growth in demand for application. I would say that is kind of the biggest micro factor because what we see is a lot of our customers when they're refreshing their appliances, they don't go just for a refresh, they go for refresh and capacity expansion and sometimes it's capacity expansion and transformation because they want to move in a private cloud environment and that's driven by there just more traffic and more usage of it even their traditional applications. We see, as I said earlier, growth with digital and fast service providers and for them the growth comes from -- they're are sometimes their services, but demand for their services whether it's collaboration platforms or e-commerce platforms or even SaaS providers, the demand for their services are growing rapidly and we are built into their infrastructure and so that drives demand for our hardware, our systems into their infrastructure.\n", "And I would say, generally there is also a fundamental change in stance, Amit, from when you go back three, four years ago. I would regularly hear from customers four years ago, look we don't want to buy more hardware because we're going to move everything to the cloud, we're going to be out of our data centers. We've got to figure out our architecture, and at the time we said there was a pause because people were thinking their architecture. There is not a single CIO that has told me this in the last 12 months. Every one of them -- I think a lot of people have learned from the first implementations in public cloud, sometimes the cost and time associated with refactoring applications. And generally, I think people are more comfortable that they're going to be in a hybrid environment for a very, very long time to come. It's not forever. And so they're comfortable growing their on-prem presence with hardware where it makes sense and leveraging the public cloud for other initiatives. And I think that that halo, that environment is very different than it was four years ago.\nAnd then the last factor that has an impact on our systems business, I mean it is security. I said earlier that we had very strong growth in SaaS security with Shape subscription, security with NGINX. But we also have very healthy double-digit growth in hardware security and that's because the -- all of these apps need to be secured and customers are aware of the risks, so they're moving forward with application security.\nAmit Daryanani -- Evercore ISI -- Analyst\nGot it. that is really helpful. If I could just maybe ask you to clarify a little bit more for me. I think a lot of folks tend to think that if the software business grows 35%, systems has to be planned, its a bit of a either [Indecipherable] sometimes for people. Is it fair to say given what you just outlined with hybrid being the reality that you could have systems growth and software growth be more durable over time versus not?\nFrancois Locoh-Donou -- President, Chief Executive Officer and Director\n", "Yes, is the potentially a possible scenario. I would separate though. When you look at our software business, you've got NGINX and Shape, and I don't think there's any relationship between the growth of that part of our software portfolio and the growth in hardware. When you look at BIG-IP per se, this is where we have seen and we try to continue to see some customers that we would have expected to have moved to software form factor right now that are delaying or reconsid" ]

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[ "o look closely at our cost structure and to be more efficient as a company. That's -- one always has to do that in a crisis, and just thinking about our core beliefs and what do we want to do. And we came to a conclusion that, that the right move was actually to continue to expand rapidly, continue to invest in the future and in new technologies, even though it is risky. And we've talked to some of our key investors, and they support that approach as well. So I think that there's clearly an uncertain future ahead. It's a bit of a bumpy road. But I think the long-term prospects are extremely good. Anything you guys want to add?\nZachary J. Kirkhorn -- Chief Financial Officer\nYeah, I agree with that, Elon. The prioritization on the key projects will enable us to execute more efficiently and faster on them, which I think is great. The other one that I would add is, it's always been our vision at Tesla to improve the customer experience and make that as digital as possible.\nElon Musk -- Co-Founder and Chief Executive Officer\nYeah. Touchless delivery.\nZachary J. Kirkhorn -- Chief Financial Officer\nYeah, So touchless delivery, mobile service touchless sales has been something that we've been very focused on and made a lot of progress on.\nElon Musk -- Co-Founder and Chief Executive Officer\nYeah. Tesla is the only car that you can literally order in less than five minutes on your phone, you can order a car and have it delivered to your doorstep with all the paper and everything done. That's it. Effortless.\nZachary J. Kirkhorn -- Chief Financial Officer\nAnd many customers do that.\nElon Musk -- Co-Founder and Chief Executive Officer\n", "And they're doing it, yes. In fact, a big part of it is just trying to communicate to people that this is something you can do, because normally, buying a car is quite a pain -- for most people, they would rather go to the dentist than buy a new car. Actually, my dentist is very -- but it's really like quite an arduous thing. When the typical retail experience for buying a new car is more painful to people than having a root canal done, you have to say, well -- and for Tesla, it is completely as easy as ordering something from the Apple App Store or something on Amazon and, except it's a car. Yeah. All right. And five minutes is a, if you really went fast, I think you could order a car probably in 90 seconds, so.\nMartin Viecha -- Senior Director for Investor Relations\nThank you. The next question from institutional investor is, can you give us a brief preview of the Battery Day by generally highlighting steps Tesla is taking to improve self energy density and time line for introduction?\nElon Musk -- Co-Founder and Chief Executive Officer\nYeah. Actually, we were just -- we don't want to pre-empt Battery Day. We want to -- leave the exciting news for that day, but there will be a lot of exciting news to tell. And I think it would be one of the most exciting days in Tesla's history and we're just trying to figure out the right timing for that. We think probably the right timing will be the -- probably the third week of May. Not giving a firm date, but we think that probably that's the right timing. And depending upon what we're allowed to do, it will either be in California or Texas.\nMartin Viecha -- Senior Director for Investor Relations\nOkay. And the last question from institutional investors, could you please update on progress stores development and commercialization of Full Self-Driving? How much revenue have you recognized so far?\nZachary J. Kirkhorn -- Chief Financial Officer\nSo there is a couple of things on the financials for Full Self-Driving. And so, currently, in North America, it's sold for $7,000 as an option. We take roughly half of that as revenue, and the other half of it goes into deferred revenue. That's associated with features that will be released with time.\n", "Our deferred revenue balance is continuing to grow. It's a little bit over $600 million. And so as we release features with time, at the end of every quarter, we take a look at what features have been released, associated value an" ]

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[ " we foresee those structural catalysts will continue to drive, including the 5G transformation, the EV and IoT devices. And those megatrends are still representing significant growth on a year-over-year basis. And we do anticipate those structural drivers will continue to fuel our growth including the OLED driver, the ISP, the WiFi-6, RF switch, MCU, PMIC, and so -- and which also lead to a higher silicon content. So we are convinced that most of those demand surge are here to stay largely driven by those structural needs.\nSo given those catalysts, and we have certain confidence. And -- I mean, in addition to that, based on our efforts and market position, that gives us that confidence that the 2022 will be another strong year for UMC to gain market share.\nCharlie Chan -- Morgan Stanley -- Analyst\nYes. But the consensus for TSMC is like next year to grow 15% to 20%. So do you think you can perform similar or even better than this key foundry peer?\nJason Wang -- Director and President\nOur estimate on the foundry industry growth in 2022 at this point is about 12%.\nCharlie Chan -- Morgan Stanley -- Analyst\n12%. I'm sorry. Okay.\nJason Wang -- Director and President\n12%. Yes. And for our business outlook, I think we'll be higher than this current foundry industry projection.\nCharlie Chan -- Morgan Stanley -- Analyst\nOkay. And lastly, variable cost. I mean that is a key reason why foundry peers want to hike the price, right? So variable cost no matter percentage or per wafer number. So can Chitung give us some kind of comment about the trend? For example, this year-over-year, what was the growth for the variable cost? And what would be the variable cost growth for the coming two years?\nQi Dong Liu -- Chief Financial Officer, Senior Vice President, Head of Corporate Governance and Company Secretary\n", "Yes. For the operating expenses, it will be growing along with our enlarged revenue. However, as a percentage of revenue, we hope it will be flat to down, under control. So the revenue growth will outpace the operating expenses. As for raw material like raw wafer and also labors that were also on the rise. But altogether, I think we are commenting that because of our production efficiency improvement, our improved economy of scale, and also with a good outlook for both demand as well as pricing for 2022. I think there's still further upside for our margins -- profit margins.\nCharlie Chan -- Morgan Stanley -- Analyst\nGot you. Thank you that's super helpful. Thanks gentlemen.\nOperator\nThe next question is coming from Roland Shu of Citigroup. Go ahead please.\nRoland Shu -- Citigroup -- Analyst\nGood afternoon. So your Xiamen fab began production from 4Q 2015. It was still loss-making last year, and I think it is still loss-making now. So with the better pricing, when do you expect Xiamen fab is going to be turned around? And also how many margin upside or earning upside to UMC once Xiamen fab is breakeven?\nQi Dong Liu -- Chief Financial Officer, Senior Vice President, Head of Corporate Governance and Company Secretary\nXiamen should be able to be profitable in 2022. As a matter of fact, they are profitable in single quarters of 2021. So we are very close to breakeven in 2021. And it is expected to be profitable in 2022. However, it will still below corporate average in terms of profit margin in 2022. And there's still room for Xiamen to catch up to the level of UMC's corporate average.\nRoland Shu -- Citigroup -- Analyst\nUnderstood. Yes. Do you have the time frame of when this Xiamen fab gross margin is going to approach corporate average?\nQi Dong Liu -- Chief Financial Officer, Senior Vice President, Head of Corporate Governance and Company Secretary\n", "No, we don't have a time frame. We -- all we can say is I can give you a rough comparison. Currently, our Singapore fab has higher gross margin than corporate average. And the Japan fab is catching up to almost identical to the UMC corporate average. And the Xiamen is, as I mentioned, coming out of loss-making to nearly breakeven this year. And it will be profitable next year, but still away " ]

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[ ", on the other hand, grew because we are investing in the 5G portfolio. So, you see growth by 2.6 billion year over year here. We invest in cloud-native, 5G portfolio in digital services. And in Networks, of course, in our 5G portfolio, plus the Cradlepoint acquisition, which also contributes here.\nEBITA margin came out at 14.6%. And as you know, this is the metric we use for the long-term target. And as Borje now said, and this is an important piece of the report today, that we said that the long-term target is now going to be reached. That's our expectation and ambition within two, three years.\nSo, continuing down the P&L and the EBIT margin here, 32.3 billion, excluding restructuring, up from 29.1 billion. This is then an EBIT margin of 13.9%, which is just at the upper part of the range for the 2022 target, which thereby is reached one year early, as Borje said already. Also, a few comments on tax then. So, as now, our profitability grew.\nWe were also able to utilize a bit more of the tax assets we have, the withholding tax assets. And effective tax rate now came out at 21% compared actually with 35% in 2020. But there was a one-off benefit from impaired withholding tax assets that we were now able to utilize in the fourth quarter. So, if we add that back as a bit of a one-off, the effective tax rate would be at 25%, still down 10 percentage units then from 2020.\nEarnings per share fully diluted 6.81. And I want to mention return also, return on capital employed came out at 18.4%, which is an increase from 17% last year. And both of these numbers include the cash position to the full extent, but we can also calculate excluding cash, and then ROCE would then have been 37%. So, let's move from P&L metrics into cash flow and look at how the earnings translated into free cash flow then.\n", "First of all, on cash flow from operating activities increased to 15.2 billion in the quarter. And that led us to a full-year outcome of 39.1 billion, and this is about 10 billion better than 2020. We do put a lot of focus on working capital in our company end to end. And we have seen the curve improve overall this year since 2017.\nAnd of course, this year, I can say the working capital was -- or this quarter, I should say, the working capital was helped by certain prepayments also by customers. And the other important factor that happened in working capital is really the increased investments in inventory levels to manage the supply situation. But on the other hand, that was offset at least partly by an increase in accounts payable during the quarter. So, if continued down this table, then you see the free cash flow of 13.5 billion.\nAnd this is really the key metric for us, free cash flow before M&A. And that led us to a free cash flow before M&A for the full year of 32.1 billion, which is an increase of 10 billion from the year before. And that, in turn, was actually an increase of about 15 billion from the previous year 2019. And this translates for the full year into 13.8% free cash flow as a percentage of net sales.\nAnd as you know, we have talked about the long-term target on this metric between 9% and 12%, so we clearly beat that target also in 2021. And on the back of this strong cash flow generated during the year and in the quarter, we managed to increase our net cash position with 10 billion. It now amounts to 65.8 billion, and the gross cash position is 97.6 billion, up around 26 billion if you compare with a year ago. And the majority of that increase comes from cash flow that we have generated in the business and a smaller part, say, about 2 billion comes from net activities from long-term debt.\n", "And we have checked the history books of Ericsson, and so far, we haven't found a higher net cash position than the 65.8 billion in the history of the company. Vonage, mentioned already by Borje, expected to close now Q1 or Q2. And that's, as you know, a $6.2 billion acquisition. And now, of course, we have -- as we have continued to build up the cash position now compared with when we announced the acquisition, we are going to be ab" ]

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[ " than the generic market itself.\nMark Connelly -- Stephens -- Analyst\nSuper. Thank you.\nOperator\nAnd the next question will be from Vincent Andrews of Morgan Stanley. Please go ahead.\nVincent Andrews -- Morgan Stanley -- Analyst\nThank you very much. Good morning, everyone. Maybe just to get back to the Asia or India discussion a little bit, just wondering, sort of as you look at the growth plan there, how much of it is just going to come down to continuing to penetrate your existing molecules versus is there going to be -- and I don't want to front run your R&D day either but, is there going to be a story about some new products that are going to have good applicability there? Or is there also, maybe an M&A role up opportunity in the region that might make sense or is it a bit of all three? Thank you.\nMark A. Douglas -- President and Chief Executive Officer\n", "Yeah, it's a bit of the first two, not necessarily the last one I think, Vincent. Yes, we do have geographic expansion and also crop expansion in India. Those fruit and vegetable markets themselves are highly fragmented. So, we've talked before, as I said about the registration profile and how we're increasing that. India plays a significant role in getting our products onto more crops in different parts of the country. Certainly, I'm not going to go into all the details of the pipeline. I'm going to do that in two weeks. But yes, the pipeline has applicability in India. I also think there are some agronomic changes going on that we see that are benefiting us. I'll give you an example. In Brazil, the sugarcane business is highly mechanized. In India, it is not, yet there are labor shortages. So in Brazil, where we are a leading provider of herbicides for the sugarcane market. We're now building a pre-emergent herbicide business in sugarcane in India, which is a brand new market. It used to be manually controlled and now they're using -- starting to use pre-emergent herbicide. That's a great example of the market that didn't exist a few years ago that is now growing rapidly and we can transfer technology and knowhow from Brazil to India. And in fact, in the past -- in the past few years, we have had India sugarcane growers go to Brazil to see the difference between the agronomic practices. That's all investment that allows us to continue to expand our market share and our market growth.\nOperator\nThank you. And the next question will be from John Roberts with UBS. Please go ahead.\nJohn Roberts -- UBS Research -- Analyst\nThank you. Maybe just to give us a little bit of preview of your technology day. It sounds like you're having good success in the combinations of the diamides, maybe you could comment what percent of that diamide sales are currently in combinations and what would you think that will be a few years from now?\nMark A. Douglas -- President and Chief Executive Officer\n", "Yeah, John, we don't actually break out what are straight products versus what are formulated products, but certainly we are having success. We talk about the Elevest we just launched. We've got a couple of others coming this year. I don't think it will ever make up the vast majority of ourselves into this space. But certainly as we fragment the market and some of the partners that we're working with, as they look at the sales, they are also likely to have a mixture of products that they will do. So it may not be that FMC has those mixture partners, all those formulated products, but our partner companies will have. So you will see a growth in that type of -- part of the market but we might not necessarily have that ourselves. We will have some, obviously, because we're working on that but I think the general market itself will continue to fragment with more formulated type products.\nJohn Roberts -- UBS Research -- Analyst\nThank you.\nOperator\nAnd the next question is from Frank Mitsch with Fermium Research. Please go ahead.\nFrank Mitsch -- Fermium Research -- Analyst\nYeah, good morning folks and an impressive results here in the third quarter. So as I look at your results for this year and the g" ]

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[ "d of show how all these models into value creation for our shareholders.\nStephen Scherger -- Executive Vice President & Chief FInancial Officer\nThanks, Mike. I'd be glad to do that. We'll wrap up our prepared remarks and then move into Q&A after that. But yeah, bringing that all together and looking out over the next several years, as Mike mentioned earlier, we're thrilled that we're able to actually make our goals for 2025 stronger, more enhanced, and actually stretched beyond that which we saw was possible back in September with the goals that we're sharing with you today.\nSo, what I'd like to do is just kind of give you a sense for what's the path there? What do you have to believe? What do we believe that gives us confidence that this is a trajectory that we can achieve over the next really the four years? If you look at progress to date, I'll focus on kind of the 2019 to 2022. The progress that we will have experienced from 2019 to what we expect to achieve here in 2022 is substantial. Integration rates up significantly. We're going to talk about a path to 90%.\nYou've seen us go from 68% to 75%, very significant. Size of the company, up 50%, $6 billion heading toward $9 billion. Margins are going to move significantly positive this year, coming off of the price-cost dislocation in '21 to be at or above where we were back in the 2019. Time horizon as such, ROIC above cost of capital on a path to being more significantly.\nSo -- and you can see a more than doubling of EPS on an adjusted basis even stronger as you look at it on adjusted excluding the amortization. And as Mike talked, what we want to talk about a little bit too is the utilization of capital. And I'll come back and talk about that momentarily. But the progress from 2019 to 2022 and what we can see possible this year sets the stage for what we believe can be a path toward the updated and enhanced Vision 2025 that we'll talk about here in a moment.\n", "The path that we can see from 2022 out to 2025, just a couple of things to lay out for you. 2022 kind of on the left side of the chart there, that's, for the most part, our guidance for the year. With what we have in front of us today, excluding any additional acquisitions, we can see a path to the middle there. We can see a path from $9 billion into the mid-9s driven by our organic growth profile predominantly.\nWe can see a path of EBITDA from $1.4 billion to $1.6 billion, up into the $1.8 billion, $1.9 billion range, margins approaching the aspirational 20%. Another $1-plus of EPS over that four-year period of time. And capex more likely to be putting money to work thoughtfully with returns in mind, and I'll take you through that here in a moment in that 5% to 7% range. But the middle column ends up in a few years with a business that's levered in the 1.5 to 2 times range, which is interesting.\nBut we'll put that to work where we identify thoughtful acquisitions to allow us to then move to the enhanced goals that we've described is $10 billion to $12 billion, putting some of the balance sheet and the cash generation to work, and move toward those 20% margins and $3-plus on adjusted EPS basis, even higher excluding amortization. And all within the window of the 2.5 to 3 times leverage that we like to operate inside of. So, I wanted to give you kind of a trajectory of that, which we have and know, without acquisitions, gets us a long way there, then put the money to work thoughtfully relative to acquisitions that help drive integration, help drive returns, and build up, really, the packaging company that we are at the 90% integration rate that I'll take you through here in a moment. One thing that we wanted to share that is new when it comes out of the acquisitions that we've done, the global footprint that we've expanded, AR Packaging very specifically.\nIf you kind of look at who will be in 2022, our $9 billion of top line will require about 5 million tons of paperboard. We'll produce 4 of that. We'll purchase a million tons. A lot of it's in Europe, but it's really around the globe.\n", "It supports our businesses i" ]

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[ "ks about it at all right now, just wait for a couple -- three years and see. But I believe our OEMs will be leading the pack in that, but there are other independent people out there, other technologies that is going to be interesting to watch.\nAnd we'll have our eyes out there, but I do believe in our OEMs and their capabilities to meet the changing technologies that are going to be demanded by the governments, but I do believe we might be pushing a little too far. I think that some of the demands when we talk about electric and hydrogen and fuel cell and all the other good stuff, the governments better be careful pressing it too hard because we got to catch up to what we want. I know we've got to clean things up, but those types of things will be where opportunities might come that I can't see right now, but I am very comfortable with the OEMs I have, participating in that transition. This is a transitionary decade like never seen. Transition creates a little bit confusion, which creates opportunity, trust me, we're poised.\nJoel Tiss -- BMO Capital Markets -- Analyst\nAnd just last, and maybe you're kind of already answered it that it's too far away. But any -- do you feel any need to get into like EV charging business or anything like that, like things that you're thinking about kind of a couple of years out or it's just very too early?\nW.M. Rusty Rush -- Chairman of the Board, Chief Executive Office and President\n", "No, I know it's not very too early. We're looking at a lot of stuff. By this time next year, every store in California will be solar and have all the charging stuff, OK? Obviously, we've got to meet the needs of the -- California is the leader in it, right? So we'll be there a year from now. That will be -- we're learning, right. We're learning with customers. We have trucks we sold. We have electric trucks we sold in different marketplaces. I'm not going to get into the specifics. And we look forward to doing more around that space, but again, I believe, I'm not here -- you all don't want to listen to me talk. You've probably heard enough, but I believe it's going to market segment driven as to what technologies went up. Obviously in Class 6, 7, we get to the end of this decade, but I'm sure we will be 50% or more.\nElectric, it's not going to be that way on heavy. We're going see that on the TL side. You'll get it in certain applications and certain market segments, but that's not going to, I believe, work for just pure TL over the road, at least not now. It could be in 20 years or so, but I don't think we're there with that, but you've got folks that -- I know hydrogen is something we will go \"Oh yeah\" There's a lot of things going on, and that's what going to create some confusion as things transition over the next decade, driven by -- we all have to deal with ESG and it's real, the environmental piece, but I think as I said, technologies will be driven just by market segments, we'll adapt to whatever makes sense.\nDiesel was not -- diesel will be phased out over time, it needs to be, but it's not going away right now, OK? We're going to be multi-pronged and working with whatever technologies out there, but always trying to be on the leading, not bleeding edge.\nJoel Tiss -- BMO Capital Markets -- Analyst\nOkay. That's awesome. Thank you so much.\nW.M. Rusty Rush -- Chairman of the Board, Chief Executive Office and President\nThank you, Joel. See you soon.\nOperator\n", "And thank you. And I'm showing no further questions. I would now like to turn the call back to Mr. Rusty Rush, Chairman, CEO and President, for closing remarks.\nW.M. Rusty Rush -- Chairman of the Board, Chief Executive Office and President\nThank you. Well, I appreciate everybody's time. Obviously, it will be a long time period till we talk in February. So I want to wish everyone happy holidays to you. Enjoy your families, and enjoy the time that you get to spend with them. And we will talk to you in February. Thank you very much.\nOperator\n[Operator Closing Remarks]\nDuration: 43 minutes\nCall participants:\nW.M. Rusty Rush -- Chairman of the Board, Chie" ]

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[ "'s pea protein or specialty proteins in Campo Grande. So, we're going to have harvesting for many years down the road, hopefully.\nI would say the 2021 is a year of heavier investments, if you will. Again, another round of investment. Some of those things are capabilities, whether it is customer insights and marketing, whether it is new digital connections to customers, new models to innovate virtually. And even a lot of organic growth. We have -- we kind of went live in organic growth projects in animal nutrition during 2020 because we were working on the synergies. And to be honest, because the COVID environment didn't allow for a lot of project work. And now, we are going into more of that. So, you're going to see 2021 being a little bit heavier investments in that, in capabilities and plants.\nAnd we see -- some of these, you don't see because it's building the foundations. We are a science-based nutrition company. But you see, for example, in the quarter, we got two awards. We got the FiE award for innovation in pea protein and we got the BIG Innovation Award for BPL1, one of our probiotics. So, we continue to invest in science, in customer insights and in organic growth in this business as we harvest -- and the harvesting, you see in how our ROIC continues to grow in that business. And you see the success of our value proposition in how the EBITDA margins continue to grow in our business.\nSo, we are very happy. But, Eric, we are at the early stages of building the best nutrition company out there. We are probably halfway through that build.\nEric Larson -- Seaport Global Securities LLC -- Analyst\n", "Okay, great. Thanks for the color there. So, Juan, the question that I haven't -- you've talked a lot about demand around the world, which is even surprisingly strong despite the grain pricing environment that we have, which is pretty high, and we're still seeing good exports, but when you look at the US crop, upcoming planting season this year, you look at what's going on in South America, which is -- clearly, the world needed 140 million metric tons of soybeans out of Brazil and they're not going to get that. We're seeing wheat in Russia. It seems to me when you just put all the numbers together on a global basis, we are not going to rebuild these global supplies in a single year. It might take a couple of years of good weather and all of that to sustain demand. Can you kind of encapsulate how ADM is looking at the next two years regarding demand and supply of global grains?\nJuan R. Luciano -- Chairman of the Board of Directors, President and Chief Executive Officer\nYes. We see an environment of real demand, real effective demand happening out there. And to be honest, our customers don't have a lot of inventory because everybody has been destocking, going hand to mouth with this inverse. So, we see truly a strong demand. And tight balance sheets. As you said, corn and oilseeds, I think they're going to touch a pipeline balance sheet. Wheat is a little bit stronger, but the Black Sea has not had a great wheat season, although Australia has a wheat growing season. So, we see -- this is going to take 18 to 24 months for this supply demand balances to be rebuilt. So, we see these conditions subsisting for the next couple of years, even with farmers, imagine like you, trying to plant more because I think that these prices will bring more acres into production. But we need those extra acres right now.\nEric Larson -- Seaport Global Securities LLC -- Analyst\nYeah. Not only plant more acres, but we'll also try to maximize our yield. So, it's a combination of both. So, thank you, gentlemen. I'll pass it on.\nJuan R. Luciano -- Chairman of the Board of Directors, President and Chief Executive Officer\nThank you, Eric.\nOperator\nYour final question is from Ben Theurer of Barclays.\nBenjamin Theurer -- Barclays Capital -- Analyst\n", "Yeah. Good morning, Juan, Ray. And congrats on the results. Just wanted to follow up on the CapEx related to the different businesses. And clearly, you've been putting a lot of emphasis on the growth and the prospe" ]

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[ "to be used for 5G.\nEarlier this month, we became the exclusive Canadian member of the new 5G Future Forum, a 5G and mobile edge computing alliance that includes Verizon, Vodafone, Telstra, Korea Telecom, and America Movil. The global alliance will create a common framework for 5G applications across the Americas, Asia-Pacific, and Europe. Over the next several years, 5G will start to transform businesses and industries with increased speed and capacity, more efficient use of spectrum, improved battery life, and lower latency. The 5G is more than just speed. Over time, 5G will support a massive increase in the number of connected devices. These devices will require near instantaneous connections for smart cities, for remote patient healthcare, robotics, driverless vehicles, virtual reality, and gaming. 5G will touch every industry and transform our world unlike any other wireless technology.\nAs you know, Rogers is partnered with Ericsson, North America's 5G partner of choice. We have established key partnerships to research, incubate, and commercialize made in Canada 5G technology. This includes R&D partnerships with the University of British Columbia, the University of Waterloo and Communitech. It includes collaboration with government and industry through Ryerson University and ENCQOR 5G. These relationships are not only advancing 5G, they are attracting young talent who want to shape Canada's 5G roadmap with us.\n", "Investment is the lifeblood of wireless networks. Investing in 5G is not only critical to Canada's digital economy, it is critical to Canada's global competitiveness. The race to 5G is not with other companies, it is with other countries. Over the past 35 years, we have invested over CAD30 billion to bring Canadians the best wireless networks in the world. We invested because we have the right public policy, the right regulation to spur investment and spur innovation. In 2020 alone, we plan to spend almost CAD3 billion in capital to build Canada's communications infrastructure. This capital and this investment is at risk. We do not have the right regulation. As we enter the world of 5G, regulatory certainty is critical to investment. We need regulation that encourages investment and fuels innovation. Punitive regulation will slow or worse stall 5G deployment. And expansion of rural connectivity will happen at a snail's pace, if at all. Ultimately, it is about balancing affordability with investment. Striking the right balance is key to Canada's digital future. The government has shown they can effectively achieve this balance and they must do it again for Canada. Looking ahead, we are well positioned to drive long-term growth, deliver the most advanced networks, and dramatically improve our customers' experience.\nAnd with that, let me turn over to Tony. Tony, over to you.\nTony Staffieri -- Chief Financial Officer\nThank you, Joe and good morning, everyone. Overall, we're pleased with the momentum with which we exited the fourth quarter of 2019, particularly on the subscriber front. We had strong subscriber metrics in both our Wireless and Cable offering, driven by the continued transition associated with our unlimited data Infinite plans. Customers continue to embrace these plans and the revenue improvement, ARPU lift, and efficiency benefits associated with these plans should contribute to healthy financial growth in the second half of 2020. I will provide more color on our guidance for 2020 momentarily, but let me give you a quick recap of the quarter.\n", "In Wireless, service revenue decreased 1% year-on-year, driven by a reduction in blended ARPU as a result of reduction in overage fees. Importantly, however, the year-over-year rate of decline in ARPU in the fourth quarter is already starting to improve compared to Q3, as overage decline slowed and more customers came in on Infinite plan. Gross and net postpaid subscriber additions as well as subscriber adoption of our Infinite plans were strong in Q4. Net postpaid loading was up a healthy 17%, as we added 131,000 postpaid subscribers. This robust growth was dri" ]

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[ "rom the government with respect to the 5G timeline. Meanwhile, we continue our preparation for the 5G and we are ready to get 5G spectrum and license. And also, as a recent development, we are working very hard on the preparation of 5G. And in June, we launched commercial 5G app on roaming services, so that Turkcell subscribers can now use 5G services in 29 countries. Overall, we don't have any official timeline for 5G. However, we already have a strong 4.5G network, which we believe is the 5G transition. Our extensive tests with the different partners on different use cases will also help us to offer a quality 5G service going forward.\nRegarding capex side of the 5G, as I said, we don't have clear schedule for the 5G auction. And obviously, when you wait more, your capex demand decrease, because the cost of equipment by nature of the technology decrease. So, we'll see what's going to happen, but obviously the announcement is there, Not official announcement, but it's an announcement. Regarding electrical vehicle project, our capital commitment to the -- to this project is around EUR115 million. So far, we have invested around EUR25 million already. So, going forward, we will continue to release its capital during the project phases, and depends on where we need, when we need, it really depends on the project plan and the progress of the EV company.\nDegtyarev Vyacheslav -- Goldman Sachs -- Analyst\nThank you. Can you maybe elaborate on the synergies you see with Turkcell?\nMurat Erkan -- Chief Executive Officer\n", "Regarding synergy, it's -- e-mobility is everywhere. So, when we joined this partnership, the TOGG partnership, everyone was thinking that why telco operator joining this EV consortium. But everybody right now, since that e-mobility is trend, the connectivity, entertainment and the car without driver is very important, which needs high speed, low latency and strong customer engagement. So that's the main reason that we have synergies. So Turkcell and TOGG can have lasting together, including smart-living solution in smart city, smart charging, data-based business model, suppliers and partners with no competencies and so on. There are integrated digital services and payment. Payment is very important as well, charging solution and infrastructure, IoT is there. So, there are many, many things may come during the road map, but we'll see what we can help on this side. But I think clearly, Turkcell has vision to finalize this synergy.\nDegtyarev Vyacheslav -- Goldman Sachs -- Analyst\nThank you very much.\nOperator\n[Operator Instructions] Our next question is from the line of Mandaci Ece with UNLU Securities. Please go ahead.\nMandaci Ece -- UNLU Securities -- Analyst\nHi. Thank you very much for the presentation. I have a couple of questions. The first one is on your hedging and FX costs. Compared to the last two years average, we are seeing a higher level FX loss -- net FX loss, when we also include the fair value adjustments. So the currency and fixed rates were also volatile in the previous quarter. So what else has changed specifically for this quarter? Is this TRY518 million FX loss, is there any one-offs in that? Or is this the new base now? Should we consider such a number as quarterly FX losses going forward? And secondly, I want to also ask about your deferred income you have generated for this quarter due to accounting change. Is this also one-off or, we will -- will we going to see such effects in the coming quarters? And thirdly, two days ago there was the emerging market news that you were in talks or started the process for the sale of stake sale in Paycell, minority stake sale in Paycell. Could you also provide your prospects regarding the potential asset sale, and when this could be official or when we should expect such news? So, thank you very much.\nMurat Erkan -- Chief Executive Officer\n", "Ece, thank you very much. Let me ask -- let me give the floor to our CFO, Osman, to answer all three questions, and then maybe I can comment at the end of the -- his comment.\nOsman Yilmaz -- Executive Vice President-Finance" ]

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[ " than the generic market itself.\nMark Connelly -- Stephens -- Analyst\nSuper. Thank you.\nOperator\nAnd the next question will be from Vincent Andrews of Morgan Stanley. Please go ahead.\nVincent Andrews -- Morgan Stanley -- Analyst\nThank you very much. Good morning, everyone. Maybe just to get back to the Asia or India discussion a little bit, just wondering, sort of as you look at the growth plan there, how much of it is just going to come down to continuing to penetrate your existing molecules versus is there going to be -- and I don't want to front run your R&D day either but, is there going to be a story about some new products that are going to have good applicability there? Or is there also, maybe an M&A role up opportunity in the region that might make sense or is it a bit of all three? Thank you.\nMark A. Douglas -- President and Chief Executive Officer\n", "Yeah, it's a bit of the first two, not necessarily the last one I think, Vincent. Yes, we do have geographic expansion and also crop expansion in India. Those fruit and vegetable markets themselves are highly fragmented. So, we've talked before, as I said about the registration profile and how we're increasing that. India plays a significant role in getting our products onto more crops in different parts of the country. Certainly, I'm not going to go into all the details of the pipeline. I'm going to do that in two weeks. But yes, the pipeline has applicability in India. I also think there are some agronomic changes going on that we see that are benefiting us. I'll give you an example. In Brazil, the sugarcane business is highly mechanized. In India, it is not, yet there are labor shortages. So in Brazil, where we are a leading provider of herbicides for the sugarcane market. We're now building a pre-emergent herbicide business in sugarcane in India, which is a brand new market. It used to be manually controlled and now they're using -- starting to use pre-emergent herbicide. That's a great example of the market that didn't exist a few years ago that is now growing rapidly and we can transfer technology and knowhow from Brazil to India. And in fact, in the past -- in the past few years, we have had India sugarcane growers go to Brazil to see the difference between the agronomic practices. That's all investment that allows us to continue to expand our market share and our market growth.\nOperator\nThank you. And the next question will be from John Roberts with UBS. Please go ahead.\nJohn Roberts -- UBS Research -- Analyst\nThank you. Maybe just to give us a little bit of preview of your technology day. It sounds like you're having good success in the combinations of the diamides, maybe you could comment what percent of that diamide sales are currently in combinations and what would you think that will be a few years from now?\nMark A. Douglas -- President and Chief Executive Officer\n", "Yeah, John, we don't actually break out what are straight products versus what are formulated products, but certainly we are having success. We talk about the Elevest we just launched. We've got a couple of others coming this year. I don't think it will ever make up the vast majority of ourselves into this space. But certainly as we fragment the market and some of the partners that we're working with, as they look at the sales, they are also likely to have a mixture of products that they will do. So it may not be that FMC has those mixture partners, all those formulated products, but our partner companies will have. So you will see a growth in that type of -- part of the market but we might not necessarily have that ourselves. We will have some, obviously, because we're working on that but I think the general market itself will continue to fragment with more formulated type products.\nJohn Roberts -- UBS Research -- Analyst\nThank you.\nOperator\nAnd the next question is from Frank Mitsch with Fermium Research. Please go ahead.\nFrank Mitsch -- Fermium Research -- Analyst\nYeah, good morning folks and an impressive results here in the third quarter. So as I look at your results for this year and the g" ]

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[ "you thinking some of these international awards could continue to trend, especially given the focus that you have here on growing international backlog while the U.S. takes time to recover?\nSean Hunkler -- President and Chief Executive Officer\nWe certainly see the opportunities in Europe for sure. We see opportunities in Southeast Asia, in Africa and pretty much all around the globe, where we have boots on the ground. In addition, because of the HX acquisition, we think it's going to help really open up the market in China as well. And it's also going to help us in other markets to have a really high quality 1P Tracker from HX as well.\nSo we're really, frankly speaking, we're excited about the opportunities around the globe. The new opportunities that we talked about came from Southeast Asia, came from Africa. And as I mentioned before, our pipeline is up to 64 gigawatts and half of that now is international, 20% growth internationally so far this year. And we're really quite excited about that.\nLet me also have Patrick Cook, our chief commercial officer comment.\nPatrick Cook -- Chief Commercial Officer\nYeah, from our perspective, what we're seeing, I'd say, in the last three to four months, definitely an uptick in activity in the European market. And we've had a team on the ground there for about a year developing relationships and partnerships with folks in that region, similar what we did in Southeast Asia, sub-Saharan Africa and Australia. And so we've definitely seen an uptick in the level of activity in terms of bidding in that region, and we hope to be able to take advantage of that activity in terms of project wins because we have those relationships with the EPCs and developers.\nJulien Dumoulin-Smith -- Bank of America Merrill Lynch -- Analyst\n", "And then maybe can we talk a little bit about the -- just the EBITDA trend here and balance sheet a little bit further? Just how are you thinking about the cash burn rate? Obviously, in the quarter, you saw some working capital outflow contribute alongside EBITDA burn. Can you talk about how you see that trending in 2Q and 3Q? Obviously, you're talking about an improvement here in the third-quarter timeframe here, obviously, pulling back guidance in the context of having a little bit less clarity in the near-term. So I appreciate the opacity to the situation, but how are you thinking about sort of managing the liquidity side of this? Obviously, 2Q with an EBITDA burn, how do you think about AR in 2Q? And how do you think about the levers that you have as you think about 3Q even?\nSean Hunkler -- President and Chief Executive Officer\nSo we're definitely seeing progress in AR. I mentioned before at the end of Q1, we had $130 million in receivables, and we've made really good progress in terms of collections on those receivables. And definitely, we'll see a continued improvement in cash. And so honestly speaking, I feel good about the improvement we made even so far in the current quarter, and I expect it to continue.\nIn addition, we also have the $100 million revolver. It's completely undrawn, and so we have that as well. And again, I feel good about the progress we've made in terms of cash and we'll continue to make. Let me let our CFO, Phelps Morris comment on that as well.\nPhelps Morris -- Chief Financial Officer\nYeah. So as Sean mentioned, right, we had some timing issues at the end of Q1, where a number of invoices were due. We've done a really good job on collecting those as we moved in this quarter. We do anticipate for this quarter Q2 that we will be able -- a net increase in terms of cash despite the guide in terms of the negative EBITDA.\nSo as we talk about with the kind of the second half, just ranges in terms of margins, we do anticipate margins to increase sequentially throughout the year. And so we do have multiple levers, as Sean mentioned, untapped revolver, etcetera, that will help us manage through any liquidity issues.\nSean Hunkler -- President and Chief Executive Officer\n", "So the other thing, too, I would add, Julien is we -- obviously, we have a lot of focu" ]

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[ "o look closely at our cost structure and to be more efficient as a company. That's -- one always has to do that in a crisis, and just thinking about our core beliefs and what do we want to do. And we came to a conclusion that, that the right move was actually to continue to expand rapidly, continue to invest in the future and in new technologies, even though it is risky. And we've talked to some of our key investors, and they support that approach as well. So I think that there's clearly an uncertain future ahead. It's a bit of a bumpy road. But I think the long-term prospects are extremely good. Anything you guys want to add?\nZachary J. Kirkhorn -- Chief Financial Officer\nYeah, I agree with that, Elon. The prioritization on the key projects will enable us to execute more efficiently and faster on them, which I think is great. The other one that I would add is, it's always been our vision at Tesla to improve the customer experience and make that as digital as possible.\nElon Musk -- Co-Founder and Chief Executive Officer\nYeah. Touchless delivery.\nZachary J. Kirkhorn -- Chief Financial Officer\nYeah, So touchless delivery, mobile service touchless sales has been something that we've been very focused on and made a lot of progress on.\nElon Musk -- Co-Founder and Chief Executive Officer\nYeah. Tesla is the only car that you can literally order in less than five minutes on your phone, you can order a car and have it delivered to your doorstep with all the paper and everything done. That's it. Effortless.\nZachary J. Kirkhorn -- Chief Financial Officer\nAnd many customers do that.\nElon Musk -- Co-Founder and Chief Executive Officer\n", "And they're doing it, yes. In fact, a big part of it is just trying to communicate to people that this is something you can do, because normally, buying a car is quite a pain -- for most people, they would rather go to the dentist than buy a new car. Actually, my dentist is very -- but it's really like quite an arduous thing. When the typical retail experience for buying a new car is more painful to people than having a root canal done, you have to say, well -- and for Tesla, it is completely as easy as ordering something from the Apple App Store or something on Amazon and, except it's a car. Yeah. All right. And five minutes is a, if you really went fast, I think you could order a car probably in 90 seconds, so.\nMartin Viecha -- Senior Director for Investor Relations\nThank you. The next question from institutional investor is, can you give us a brief preview of the Battery Day by generally highlighting steps Tesla is taking to improve self energy density and time line for introduction?\nElon Musk -- Co-Founder and Chief Executive Officer\nYeah. Actually, we were just -- we don't want to pre-empt Battery Day. We want to -- leave the exciting news for that day, but there will be a lot of exciting news to tell. And I think it would be one of the most exciting days in Tesla's history and we're just trying to figure out the right timing for that. We think probably the right timing will be the -- probably the third week of May. Not giving a firm date, but we think that probably that's the right timing. And depending upon what we're allowed to do, it will either be in California or Texas.\nMartin Viecha -- Senior Director for Investor Relations\nOkay. And the last question from institutional investors, could you please update on progress stores development and commercialization of Full Self-Driving? How much revenue have you recognized so far?\nZachary J. Kirkhorn -- Chief Financial Officer\nSo there is a couple of things on the financials for Full Self-Driving. And so, currently, in North America, it's sold for $7,000 as an option. We take roughly half of that as revenue, and the other half of it goes into deferred revenue. That's associated with features that will be released with time.\n", "Our deferred revenue balance is continuing to grow. It's a little bit over $600 million. And so as we release features with time, at the end of every quarter, we take a look at what features have been released, associated value an" ]

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[ " we foresee those structural catalysts will continue to drive, including the 5G transformation, the EV and IoT devices. And those megatrends are still representing significant growth on a year-over-year basis. And we do anticipate those structural drivers will continue to fuel our growth including the OLED driver, the ISP, the WiFi-6, RF switch, MCU, PMIC, and so -- and which also lead to a higher silicon content. So we are convinced that most of those demand surge are here to stay largely driven by those structural needs.\nSo given those catalysts, and we have certain confidence. And -- I mean, in addition to that, based on our efforts and market position, that gives us that confidence that the 2022 will be another strong year for UMC to gain market share.\nCharlie Chan -- Morgan Stanley -- Analyst\nYes. But the consensus for TSMC is like next year to grow 15% to 20%. So do you think you can perform similar or even better than this key foundry peer?\nJason Wang -- Director and President\nOur estimate on the foundry industry growth in 2022 at this point is about 12%.\nCharlie Chan -- Morgan Stanley -- Analyst\n12%. I'm sorry. Okay.\nJason Wang -- Director and President\n12%. Yes. And for our business outlook, I think we'll be higher than this current foundry industry projection.\nCharlie Chan -- Morgan Stanley -- Analyst\nOkay. And lastly, variable cost. I mean that is a key reason why foundry peers want to hike the price, right? So variable cost no matter percentage or per wafer number. So can Chitung give us some kind of comment about the trend? For example, this year-over-year, what was the growth for the variable cost? And what would be the variable cost growth for the coming two years?\nQi Dong Liu -- Chief Financial Officer, Senior Vice President, Head of Corporate Governance and Company Secretary\n", "Yes. For the operating expenses, it will be growing along with our enlarged revenue. However, as a percentage of revenue, we hope it will be flat to down, under control. So the revenue growth will outpace the operating expenses. As for raw material like raw wafer and also labors that were also on the rise. But altogether, I think we are commenting that because of our production efficiency improvement, our improved economy of scale, and also with a good outlook for both demand as well as pricing for 2022. I think there's still further upside for our margins -- profit margins.\nCharlie Chan -- Morgan Stanley -- Analyst\nGot you. Thank you that's super helpful. Thanks gentlemen.\nOperator\nThe next question is coming from Roland Shu of Citigroup. Go ahead please.\nRoland Shu -- Citigroup -- Analyst\nGood afternoon. So your Xiamen fab began production from 4Q 2015. It was still loss-making last year, and I think it is still loss-making now. So with the better pricing, when do you expect Xiamen fab is going to be turned around? And also how many margin upside or earning upside to UMC once Xiamen fab is breakeven?\nQi Dong Liu -- Chief Financial Officer, Senior Vice President, Head of Corporate Governance and Company Secretary\nXiamen should be able to be profitable in 2022. As a matter of fact, they are profitable in single quarters of 2021. So we are very close to breakeven in 2021. And it is expected to be profitable in 2022. However, it will still below corporate average in terms of profit margin in 2022. And there's still room for Xiamen to catch up to the level of UMC's corporate average.\nRoland Shu -- Citigroup -- Analyst\nUnderstood. Yes. Do you have the time frame of when this Xiamen fab gross margin is going to approach corporate average?\nQi Dong Liu -- Chief Financial Officer, Senior Vice President, Head of Corporate Governance and Company Secretary\n", "No, we don't have a time frame. We -- all we can say is I can give you a rough comparison. Currently, our Singapore fab has higher gross margin than corporate average. And the Japan fab is catching up to almost identical to the UMC corporate average. And the Xiamen is, as I mentioned, coming out of loss-making to nearly breakeven this year. And it will be profitable next year, but still away " ]

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[ "icant do you anticipate the 5G rollout could be to overall ThingWorx adoption in the near term?\nJames Heppelmann -- President and Chief Executive Officer\nWell, I think it's very helpful. It's 1 more reason why industrial companies should go back into their factories and look to make changes. If somebody's going to put in 5G, they're going to put in an application like ThingWorx at the same time because if you suddenly have all this access to data and mobility and high speed connectivity, what are you going to do with all the data? And that's really where ThingWorx and ultimately, Vuforia and products like that fit in. So I think 5G is helpful. It's a tailwind.\nWe've been building a decent business without 5G, but 5G is certainly in the category of nice tailwind more so than anything else.\nOperator\nAnd your next question is from Adam Borg with Stifel.\nAdam Borg -- Stifel -- Analyst\nMaybe for Jim, just on Rockwell, it was great to see the strength in the quarter on the partnership. And I was just curious, it's always been a couple of quarters since that new extended agreement that you guys have had, expanding beyond IoT. And I'm just curious, was this strength that you've seen, just focused on the IoT and AR side? Or was there any early green shoots around Rockwell being able to sell Windchill and Onshape?\nJames Heppelmann -- President and Chief Executive Officer\n", "No. I mean, honestly, and I would characterize it as IoT and AR. Rockwell, and I think I was transparent on this. That new agreement gave Rockwell the right to sell more products because sometimes they come across those opportunities. But it wasn't really changing the center of gravity of the partnership. I think if you look at what's driving a little more momentum with Rockwell, it's 2 things. First of all, Rockwell brought in some new talent. And I'll just say from the sidelines as a partner, these guys are making a difference. They're shaking some things up and really creating some energy. And then the second thing is Rockwell had a good quarter overall. Particularly on the orders front. I saw they announced today and their order book was up double digits and so forth. So I imagine some of those orders ended up flowing our way. So I think it's really more improving economic situation in the world of industrial automation, coupled by new talent.\nIt's not really a mix shift in the product line up to sell it.\nOperator\nAnd next question is from Sterling Auty with JPMorgan.\nMile -- JPMorgan -- Analyst\nThis is Mile on for Sterling. I was hoping you could just maybe give more of a demand breakdown between CAD, PLM, IoT and AR? And then are there any vertical end markets that you aren't seeing a bounce back in demand yet as the economy is reopening?\nJames Heppelmann -- President and Chief Executive Officer\nOkay. The first part of your question was breakdown demand between Creo and Windchill? Did I get that right? The whole portfolio? Well, I think the demand sort of mirrors the growth rates. As you might expect, some of the products with the highest growth rate, of course, in order to sustain those growth rates, they have the highest bookings. And in some cases, higher churn as well with newer technologies and so forth. And then when you get to a product like Creo, churn is very low. So we can build a growth business of less aggressive bookings coming in the top. So I would say, yes, demand is strongest for Vuforia and Onshape. At the next level, it's really ThingWorx. And then below that, PLM and below that CAD, just in terms of demand.\n", "But it's again a function of the maturity of these products. It's a function of the growth rate of the markets, which is sort of a function of the maturity of the markets and so forth. Hopefully, that hits your question. I guess it was the second part, I mean.\nOperator\nAnd for our last question, we have Jason Celino with KeyBanc Capital.\nJason Celino -- KeyBanc Capital -- Analyst\nPLM, very helpful slide, as always, it's been quite strong for a couple of quarters now, but maybe taking a step down in terms of the strength, customer size " ]

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[ "mmitted to maintaining.\nOur 2020 performance amid the pandemic demonstrates GoPro's enduring relevance as a personal experience sharing solution for consumers and powerful creative tool for professionals. Looking ahead, our plan is to continue super serving our core customers with outsized GoPro subscriber benefits, while expanding our relevance to users of other cameras and smartphones through software subscription offerings. We believe we can maintain our rapid pace of innovation, launching exciting new hardware and software products backed by significant world-class marketing, all within reasonable spend levels that are directionally in line with 2020.\nWe are excited about 2021, even amid the pandemic. We've proven time and again that GoPro can thrive during challenging times. We believe the steps we're taking to strengthen our business today will benefit us in spades when the world eventually rebounce from the pandemic in earnest, but fortunately as a business, we do not have to wait for that to happen. I want to thank our employees around the world for their resilience and adaptability throughout 2020. Your dedication and world-class execution is why we are well positioned for the future.\nAnd now, operator, we're ready to take questions.\nQuestions and Answers:\nOperator\n[Operator Instructions] All right. We'll take the first question from Paul Chung with JP Morgan.\nPaul Chung -- JP Morgan -- Analyst\nHi. Thanks for taking my question. So just on your full-year '21 guidance, given the large kind of seasonal mix in second half. What kind of gives you the confidence in providing some visibility there and what kind of large factors can sway this higher, maybe possibly rebound to that 4 million kind of units selling for the year than in the past. And then I have follow-up?\nBrian McGee -- Executive Vice President, Chief Financial Officer, Chief Operating Officer\n", "Yes. Hi Paul, this is Brian. Well let's talk about 2020 we sold through 3.6 million units and we shipped in about 2.8 million units and that delta is because we took channel inventory down about 800,000 units and ended the year at about 650,000 units in that channel. So that's an important distinction to make. And we think we've got the right channel inventory in place. As we look to '21, we expect to continue on the D2C transition and shift our revenue up from the 32% that we had in 2020 to 38% to 42% in 2021 that's why we have very good visibility into the first quarter and our trends on the sell-through and selling perspective are hitting the mark related to our guide of $185 million in Q1.\nAnd so, we think on a range that sell-through is going to gain 2.4 million units to 2.6 million units right now and settling in kind of 3.2 million units to 3.4 million units. So we may see about 100,000 units or so reduction in the channel even in '21 and that's really due to the fact that we're growing -- our expectation is to grow more in D2C and so we would continue to trim retail inventories a bit and keep them at healthy levels going into the end of '21 and into 2022.\nPaul Chung -- JP Morgan -- Analyst\nGot you. Thanks for that. And then your unit sell-through was off by maybe around 100,000 relative to guidance, kind of what drove the difference there, I noticed regionally EMEA and Asia were a bit softer and you mentioned the pandemic, is there kind of more preference for North American consumers to kind of go to the website and what's been the split overseas for GoPro.com sales and how are you driving more traffic there? Any comments you can make. Thanks.\nNicholas Woodman -- Chief Executive Officer and Chairman\n", "Yes, GoPro.com did great, record quarter. We doubled the business year-over-year basis in that 92% sequentially, so terrific performance on GoPro.com. Our revenue came in within our guidance. Within the split between retail and consumer, we were within like 5% of our revenue was kind of split between a little bit more heavy to retail than D2C. We definitely saw some slowness in EMEA and APAC channels, largely related to COVID and North America did do well and bet" ]

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[ "obably be able to demo or could do POCs with the customers out there and really fully operational systems about that number. We target a year, but it's a very aggressive type of targeting, about a year after tape-out. Usually, somewhere between a year and 18 months is the more type of reasonable type of assumption for getting a product out.\nBut let's remember that this is not the whole strategy. This is the longer-term strategy. The 5G deployment strategy that we're doing today is done around the products we just released over the last two quarters around our IP-50 family, which is winning in the markets right now. The whole chipset is targeted for the second wave of 5G when capacities really, really soar.\nFor the current design wins and that we're having and where we have a significant lead over the competition, the 50 family gives us the capabilities, both for 20 gigs in E-band, gives us capabilities like very wide channels in Europe for winning -- for being able to deploy macro 5G base stations with 4 and 8-gig capabilities with very, very small footprint. So, it's a whole evolution which I mentioned. And I think that's the same story we had around the 4G, it's a set of products that continuously rides the wave, starts with a certain sort of products in which we have ready at this point, and then additional products and services both in the radio domain, in the networking domain, in the management domains which help the customers really deploy the 5G. So, it's that whole sequence that we are walking -- deployed walking with customers and it's not just one point of time which is OK, yes, that's the next step, a very important step, a leading step, which I think very hard for others will be to catch up there, but that's only part of the story.\n", "The whole story is the whole strategy we've been building on how do we very fast ride the 5G wave in different places around the world starting in Europe, U.S., Pacific Rim, and then later on a in the emerging market types of places where we have seen that. As an interesting point on this, we've been talking that we won and we moved in the last quarter from five to nine design wins, an interesting point this quarter, I think we are close to 10. I got news from one customer, a very important one, that they selected us and -- but I want to see I'll count it as 10 when I'll see the official paper on the table.\nGeorge Iwanyc -- Oppenheimer & Co. Inc. -- Analyst\nOK. And then, I guess following up on the -- the 9, 10 design wins. Can you give us a sense of how rich the pipeline activity is both on the 4G side and the 5G side for the -- the next six months? And then, just maybe a bigger picture question about that which will be my last question. It's like the puts and takes on your annual guidance like what -- what would be something that accelerates it toward the higher end and what would pull it down toward the lower end of the range?\nIra Palti -- President and Chief Executive Officer\nSo, let's start, because I think the questions were focused on the profitability, but let's start with Q4 and the pipeline. Q4 was at the high end of our revenue run rate. '19 -- even with COVID we had higher bookings than we had in 2019. So, in 2020, higher bookings with COVID, around 4G, a little bit than in '19.\nSo, we are running. And I think that we're running in two areas. One, we continue to see significant 4G deployments in a lot of places where we do not see 5G yet for all sorts of reasons like handset pricing, technology readiness, and others, and people are deploying and delivering still a lot of capacity around 4G. See India, see Africa, see LatAm -- LatAm alone time slowed down because of capex from COVID in different places.\n", "The 5G that we see right now and as the pipeline on the table, not large, and that's why we say the second half. Reason is that when we look at the 5G design wins, they are all initial deployments where we start to see the deployments. The initial deployments are mainly on fiber. I won't say even the second wave, but it's when you start going a little bit outside the cen" ]

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[ "icant do you anticipate the 5G rollout could be to overall ThingWorx adoption in the near term?\nJames Heppelmann -- President and Chief Executive Officer\nWell, I think it's very helpful. It's 1 more reason why industrial companies should go back into their factories and look to make changes. If somebody's going to put in 5G, they're going to put in an application like ThingWorx at the same time because if you suddenly have all this access to data and mobility and high speed connectivity, what are you going to do with all the data? And that's really where ThingWorx and ultimately, Vuforia and products like that fit in. So I think 5G is helpful. It's a tailwind.\nWe've been building a decent business without 5G, but 5G is certainly in the category of nice tailwind more so than anything else.\nOperator\nAnd your next question is from Adam Borg with Stifel.\nAdam Borg -- Stifel -- Analyst\nMaybe for Jim, just on Rockwell, it was great to see the strength in the quarter on the partnership. And I was just curious, it's always been a couple of quarters since that new extended agreement that you guys have had, expanding beyond IoT. And I'm just curious, was this strength that you've seen, just focused on the IoT and AR side? Or was there any early green shoots around Rockwell being able to sell Windchill and Onshape?\nJames Heppelmann -- President and Chief Executive Officer\n", "No. I mean, honestly, and I would characterize it as IoT and AR. Rockwell, and I think I was transparent on this. That new agreement gave Rockwell the right to sell more products because sometimes they come across those opportunities. But it wasn't really changing the center of gravity of the partnership. I think if you look at what's driving a little more momentum with Rockwell, it's 2 things. First of all, Rockwell brought in some new talent. And I'll just say from the sidelines as a partner, these guys are making a difference. They're shaking some things up and really creating some energy. And then the second thing is Rockwell had a good quarter overall. Particularly on the orders front. I saw they announced today and their order book was up double digits and so forth. So I imagine some of those orders ended up flowing our way. So I think it's really more improving economic situation in the world of industrial automation, coupled by new talent.\nIt's not really a mix shift in the product line up to sell it.\nOperator\nAnd next question is from Sterling Auty with JPMorgan.\nMile -- JPMorgan -- Analyst\nThis is Mile on for Sterling. I was hoping you could just maybe give more of a demand breakdown between CAD, PLM, IoT and AR? And then are there any vertical end markets that you aren't seeing a bounce back in demand yet as the economy is reopening?\nJames Heppelmann -- President and Chief Executive Officer\nOkay. The first part of your question was breakdown demand between Creo and Windchill? Did I get that right? The whole portfolio? Well, I think the demand sort of mirrors the growth rates. As you might expect, some of the products with the highest growth rate, of course, in order to sustain those growth rates, they have the highest bookings. And in some cases, higher churn as well with newer technologies and so forth. And then when you get to a product like Creo, churn is very low. So we can build a growth business of less aggressive bookings coming in the top. So I would say, yes, demand is strongest for Vuforia and Onshape. At the next level, it's really ThingWorx. And then below that, PLM and below that CAD, just in terms of demand.\n", "But it's again a function of the maturity of these products. It's a function of the growth rate of the markets, which is sort of a function of the maturity of the markets and so forth. Hopefully, that hits your question. I guess it was the second part, I mean.\nOperator\nAnd for our last question, we have Jason Celino with KeyBanc Capital.\nJason Celino -- KeyBanc Capital -- Analyst\nPLM, very helpful slide, as always, it's been quite strong for a couple of quarters now, but maybe taking a step down in terms of the strength, customer size " ]

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[ "d operating margin to be in the range of 23.5% to 24%.\nThat covers the 2020 guidance. Before discussing our preliminary 2021 targets, we want to remind you that the views we have today are subject to a variety of factors that may manifest themselves over the upcoming months. And hence, are subject to change, so appropriately conservative for the environment in which we are operating. We expect to provide formal 2021 guidance on our 4Q, 2020 call next year. One final note before going further, our preliminary 2021 targets reflect year-over-year growth rates that are based on the midpoint of our updated 2020 guidance for the respective metrics.\nSo at a high level, we view 2021 currently as a tale of two halves. Specifically we expect H2 will be stronger than H1 provided an economic recovery picks up steam in the back half of the year. Our continued business transition is masking our underlying growth and value creation, due to both license are trading to cloud and global Tier 1 customers ramping up their global footprints over multiple periods. We continue to believe RPO is the best go-forward metric in tracking the progress of our transition.\nOur 2021 full-year total revenue range is now expected to be between $585 million to $625 million, representing a 1% to 8% year-over-year growth range. Our target objective is to achieve $605 million, representing 5% growth, excluding our declining license impact year-over-year total revenue growth is 8%.\nAs you know Q1, 2020 was an all-time record Q1 revenue performance pre-COVID creating a tough comp for Q1 2021. We expect Q1, 2021 total revenue to be down 7% to 9% over Q1, 2020. We expect our H1 total revenue split to be about $292 million with 1% year-over-year growth given the Q1 COVID comp and H2 split to be about $313 million, this is the revenue split with a 9% growth rate.\n", "For software revenue, we are estimating $123 million to $130 million with a midpoint growth of 13%. We are targeting a $108 million to $110 million in cloud growth with midpoint growth of about 40%. Importantly, we expect license revenue to decline, almost 50% in 2021, as customers and prospects choose our cloud solutions. License revenue will be in the $15 million to $20 million range with a midpoint of $17.5 million.\nRegarding 2021, RPO our preliminary estimate is between $385 million to $390 million, up about 40% over 2020. And as Eddie mentioned we are off to a very good start in Q4 on strong cloud demand. With the backdrop of COVID, government elections and retail peak season in play and a second full selling quarter of Manhattan Active WM under our belt, this will certainly help us calibrate the camshafts on our RPO entering 2021.\nFor consulting services, we are targeting $306 million to $334 million with a $320 million midpoint, representing about 5% year-over-year growth. We expect H1 revenue to be down about 3% to 5% year-over-year with Q1 being down 15% against 2020's record services comp. The rate of year-over-year growth in services will be dictated by the pace and cadence of economic recovery for the balance of 2021.\nAnd for maintenance, we are estimating $140 million to $145 million or 4% decline to flat growth year-over-year, as we expect more existing customers to convert to cloud subscriptions. That covers the critical revenue targets.\nOur full-year 2021 adjusted earnings per share range is $1.37 to $1.54 with a midpoint of $1.46. H1 to H2 percentage splits will be 45% H1 and 55% H2 for the annual EPS splits. Q1 will be our lowest EPS quarter totaling about 21% of full-year EPS or $0.31. The primary drivers of lower year-over-year earnings per share is related to three major components. First, the continued decline of license revenue. Second, the reversal of prior cost actions we took in April of this year. And third, continued strategic investments in innovation and tooling for cloud ops to execute on the cloud growth we see in front of us.\n", "Adjusted operating margin is expected to decline year-over-year to 20% to 21%, reflecting the operating imperatives covered in our outlook for EPS. Yo" ]

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[ "ing to see that the pipeline grow, where we see Micro LED becoming a really big deal in, I don't know, one to three or four years. How do you look at that?\nRussell Ellwanger -- Chief Executive Officer\nWell, we know that our customers -- I mentioned again today, our customer there is Aledia. And as I stated, I really don't want to talk about Aledia's guidance to us. Number one, it's not proper for me to. As far as Micro LED, I think it's the right way to go. I think nanowire is a very, very exciting technology. I think that Aledia has an incredible technology and very strong differentiation. But will Micro LED grow? Certainly. Is it done 2021? I don't think so. Is it 2022? I think that that will start and I think 2023, 2024 will be very big or will become very big during those years. But I don't think 2021 is going to be huge at all for that. But I think it will start to grow in '22 and will become significant in '23, '24, '25. What is your thought?\nRichard Shannon -- Craig-Hallum Capital Group LLC -- Analyst\nI'm hearing similar timeframes but just want to get your sense as well and that's helpful. I'm glad it fits roughly speaking there. So, I think that's all my questions. Thank you, Russell.\nRussell Ellwanger -- Chief Executive Officer\nThank you.\nOperator\nNext question is from David Duley a Steelhead Securities. Please go ahead.\nRussell Ellwanger -- Chief Executive Officer\nHey, David.\nDavid Duley -- Steelhead Securities -- Analyst\nHey. Thanks for taking my question. Nice results. Could you help just frame what you think or help us understand what the size of the photonics business is now perhaps in 2020, and what your goals or aspirations are for that business?\nRussell Ellwanger -- Chief Executive Officer\n", "Okay. I know exactly what it was in 2020 for us. In 2020, it was just shy of $8 million. If I look at 2021 by forecast, it's -- a substantial increase of that maybe close to 3 times increase in what we're seeing. Where do I think it will get to? I think it will get to, for us, I mean our targets would be to be in the several hundred million. So, I think that it's very possible for it get there. But yeah, that would be our target is for the photonics business to be sitting within some small amount of years, certainly upwards of $100 million. And I think with the target of getting between $200 million and $300 million.\nDavid Duley -- Steelhead Securities -- Analyst\nAnd does this -- would the photonics revenue have above-average gross margin similar to silicon germanium?\nRussell Ellwanger -- Chief Executive Officer\nPresently it certainly has well above average gross margin. It's very, very high margins at present. As anything goes into high volume, margins come down but I believe it will stay very high margin. It'll -- yeah, I think it will be among the highest margins we have in the company.\nDavid Duley -- Steelhead Securities -- Analyst\nExcellent. And then in your prepared remarks you mentioned something about a long-term contract and I had some audio difficulties and so I just don't -- could you just elaborate about what you were talking about there?\nRussell Ellwanger -- Chief Executive Officer\nIf I recall the exact statements it was -- I'm now paraphrasing, it said that as a validation to the strength of the power platforms that we have, we have multiple customers asking us for a long-term supply agreements. Now, when they're asking for a long term supply agreement that takes on some term or some type of a take-or-pay agreement to where there's a certain volume that they're committed to buy and there's a certain volume that we committed to them. Now, customer really won't give you that unless your platform's very powerful because they're committed to use that platform. So, that was the statement that I made. And to add color to it, that is color now, that it would be involving to some level a take-or-pay agreement.\nDavid Duley -- Steelhead Securities -- Analyst\nSo we would expect the customer deposit liability number to be going up over time.\nRussell Ellwanger -- Chief Executive Officer\n", "Not necessarily. A take-or-pay" ]

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[ "ve the right platform for that. So we are investing some money in our basic platform, our basic infrastructure, IT, finance, all of that to make sure that if we did participate in that, that we could integrate a company very well and move forward. So we've been doing some of that. We'll do more of it. And then more broadly, obviously, there's continuous innovation in this industry.\nWe are the largest player in the industry. So scale is always helpful, additional scale. But for us, it's probably more around technologies, and there's three of them. There's printing, there's materials and there's software. So those three will encompass our focus.\nAnd I would again come back, Greg, to biotech. I just think -- I think the next horizon for additive manufacturing, there's an enormous runway for current applications in both industrial and Health care. But when you look out past those, there is a whole new horizon on biotech for printing. And I'm really excited to be making -- to position ourselves well for that market as well. So hopefully, from our shareholder standpoint, investors, the very short term -- good short-term benefits by growth in the existing markets and the adoption of additive for healthcare and industrial and then you provide a long-term value play in the biomedical space, biotech space with regenerative medicine. Does that make sense?\nGreg Palm -- Craig-Hallum -- Analyst\nYes. All good. Appreciate all the insight. Thanks. I'll hop back in queue.\nJeffrey A. Graves -- Chief Executive Officer and President\nThanks, Greg.\nOperator\nThank you. Our next question is coming from Sarkis Sherbetchyan of B. Riley FBR. Please go ahead.\nSarkis Sherbetchyan -- B. Riley FBR -- Analyst\nHey, good morning and thank you for taking my question here.\nJeffrey A. Graves -- Chief Executive Officer and President\nGood morning, Sarkis.\nSarkis Sherbetchyan -- B. Riley FBR -- Analyst\n", "Yes. So first question just really revolves around the revenue from divestitures that's called out for both fiscal '19 and '20 on the bottom of the release. I think it sum totals to, let's call it, a range of $40 million to $50 million on the year. But in the prepared comments, I think you mentioned the quarterly run rate of the revenues from divestitures are $25 million. So that adds up to $100 million. So I just wanted to get a sense if the revenues called out in the press release were from GibbsCAM, Cimatron and the other revenues that you called out in the earnings deck. Is that for the businesses pending divestiture in 3Q?\nJagtar Narula -- Executive Vice President, Chief Financial Officer\nYes. Sarkis, you got that exactly right. So what's called out in the release is to reconcile to organic growth. So those are only the acquisitions that have already closed -- or sorry, the divestitures have already closed, which is GibbsCAM, Cimatron and a couple of small divestitures that we did last year, our ODM business in China and Australia, and that's the $40 million to $50 million that you're referencing of revenue.\nThe $25 million I referenced in my prepared remarks are for the divestitures that we have not yet closed. That's the on-demand parts business and the Simbionix business. And we expect that to close midway through the second quarter at some point versus third quarter at some point.\nSarkis Sherbetchyan -- B. Riley FBR -- Analyst\nOkay. So just to use some crude math here, if I simply take the sum total of the '19 as a base line, right, ex the divestitures and then remove about $100 million in top line, I get to about $500 million or so in, let's call it, pro forma top line. We should grow the business from that point forward and then kind of take your margin range of, I think you said 40% to 44% still and kind of work with that, correct?\nJagtar Narula -- Executive Vice President, Chief Financial Officer\nYes, that's absolutely correct. That's -- I think I mentioned in my prepared remarks that we would expect to be in the order of $500 million revenue company post divestitures, profitable. And so I think you've got it exactly right.\n", "Sarkis Sherbetchyan -- B. " ]

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[ "an imagine, this is a very beneficial trend for us. We also believe it's a strong vote of confidence in Atomera's technology when companies with very limited R&D wafer capability are allocating it to development using MST technology.\nWe continue to see very strong CapEx growth by almost all players in the semiconductor industry. Inevitably, the most advanced nodes are getting a lot of that CapEx, but legacy nodes are now starting to get long-overdue attention with capital directed toward building new factories or expanding production in existing fabs to correct long-term capacity issues. Today's Intel announcement of the Tower acquisition is a good example of this type of investment. We believe this allocation of capital provides a very strong opportunity for Atomera since MST can uniquely enhance older nodes that have run out of other options.\nOur MST-SP product is a great example of how our technology can be used to improve both performance and die size, and therefore, capacity in a legacy fab. We are at the beginning of an unprecedented period of CapEx growth in the semiconductor industry, and with that growth come exceptional opportunities for Atomera. I think you can agree that the last three months have been very productive for Atomera. Our company achieved several important milestones, including publicly announcing MST-SP, reaching 300 patents granted and pending, inclusion in Forbes List of Best American Small Companies for 2022, and more recently announcing a new license with a foundry and fulfillment of the technical milestones specified in our JDA.\nWe are clearly entering 2022 with strong momentum, which is something we hope to carry forward through the remainder of the year. Now Frank will review our financials.\nFrank Laurencio -- Chief Financial Officer\nThank you, Scott. At the close of the market today, we issued a press release announcing our fourth quarter and full-year 2022 results. This slide shows our summary financials. Our GAAP net loss for the year ended December 31, 2021, was $15.7 million or $0.70 per share, compared to a net loss of $14.9 million or $0.79 per share in 2020.\n", "Revenue increased by $338,000 from $62,000 in 2020 to $400,000 in 2021. GAAP operating expenses were $15.9 million in 2021, which was an increase of $960,000 from $15.0 million in 2020. Non-GAAP net loss for 2021 was $12.5 million and reflected $12.9 million in non-GAAP operating expenses. In 2020, our non-GAAP net loss was $11.7 million, the same as our non-GAAP operating expenses for that year.\nStock compensation expense, which is the largest component of non-GAAP costs, was $3 million in both years. Our press release and this slide contain a reconciliation between our GAAP and non-GAAP results. In the fourth quarter of 2021, our GAAP net loss was $4.2 million or $0.18 per share compared to a net loss of $3.9 million or $0.19 per share in Q4 of 2020, reflecting higher operating expenses. Sequentially, the Q4 net loss in 2021 was approximately flat compared to Q3.\nOn a non-GAAP basis, our Q4 2021 net loss was $3.4 million compared to a loss of $3 million in Q4 2020. The $3.4 million in non-GAAP net loss in Q4 was unchanged sequentially from Q3 2021. Focusing now on the components of operating expenses, our full-year research and development expenses in 2021 were $8.8 million, an increase of $355,000 from $8.4 million in 2020. This increase was mainly due to the new epi tool lease, which we started making payments on in August of 2021.\nGeneral and administrative expenses increased to $6.2 million in 2021 from $5.6 million in 2020, mainly reflecting higher insurance and payroll costs. Sales and marketing expenses in 2021 were $986,000 compared to $921,000 in the prior year. Our cash balance at December 31, 2021, was $28.7 million, compared to $37.9 million at the end of 2020. The $9.2 million decline over the year reflects $12.4 million of cash used in operating activities, offset by $3.3 million of cash received from financing activities.\n", "As of December 31, 2021, we had 23.2 million shares outstanding. Last year, we recognized" ]

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[ "fficer\nSo John, just kind of commenting briefly on the level of activity we are seeing because that, in many ways, is that leading indicator. So we're seeing proposal activity increasing. We're seeing that increasing in the U.S. We're seeing it increasing across Asia. I think about China, South Korea, India, a couple of the ASEAN markets as well. So we're seeing a lot more projects. Now, a part of these projects are electronics. You've heard me talk about electronics before, what a strong growth we've seen in the quarter. And my expectation is that we will see a lot more of electronic project growth happen as we see these new fab buildups happen as well. They are progressing well. They are all on track, and you've seen a number of announcements, I'm sure, from TSMC, Samsung, Intel and so on and so forth. So those are all looking to be on track and part of that activity. I also have to say that the other piece I'm a little more -- I'm a little more positive on is the more traditional markets, steel, chemicals, refining, also project activity actually picking up over there as we see. So I'm not going to comment particularly on if we are seeing potentially this as a snapback. I see this as fundamental underlying activity picking up and translating them into projects that people are pursuing, and we are getting a chance to participate in.\nJohn McNulty -- BMO Capital Markets -- Analyst\nGreat. Thanks very much for the color.\nOperator\nThank you. And our next question comes from Peter Clark from Societe Generale. Your line is open.\nPeter Clark -- Societe Generale -- Analyst\n", "Yes. Good afternoon everyone. I've got two questions. First one for Sanjiv, I think. About the productivity being embedded, obviously, in the PLC. Is the story now on productivity more about not adding costs back if the volumes continue to grow rather than savage cost cutting as such? Because I did notice, obviously, Q4 -- we'll get the Q1 numbers later in terms of the headcount and the severance costs. But they did slow, obviously, in the fourth quarter from the pace earlier in the year. And then for Matt, on the cash flow, I mean, the Q1 performance now is what we would normally see in the legacy companies, usually in Q4, which is normally the strongest quarter. I'm just wondering how that progresses through the year, given that you always make more money in the second half? Thank you.\nSanjiv Lamba -- Executive Vice President and Chief Operating Officer\nPeter, thanks. I'm going to give you a quick view on productivity. So you've heard me say this before, and I think Matt kind of made a very good observation earlier on, which is that we are always going to be very, very focused on managing our cost base. Our total cash fixed cost is something we kind of discuss every month at the business reviews that we carry out. So adding cost back is something we kind of manage actively. I think it doesn't necessarily translate into productivity because for productivity, we want to see that incremental action as well, which makes it tough. But it is in the DNA of the organization, Peter, and you've heard me talk kind of passionately about the fact that every individual in our organization has got a mandate to go out and look for productivity every day.\n", "It's thousands of projects, which add small benefits but actually flow into the entire productivity part that we put together. There's one other thing which I think is now enabling that or helping us accelerate that, and that's around digitalization. And again, hopefully, you've heard me speak about this as well before. We're using digitalization, not as a significant tool that's going to create Earth-shattering new discoveries for us, but it's something that we apply in our business to deal with pain points every day. Our organizational model is embedded within the organization. So digital kind of expertise is being built up within every business across the world, and we are encouraging them. And in fact, I track it every quarter to ask them what percentage of productivity is coming from digital work or initiatives that w" ]

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[ "ng demand in the long dormant automotive test market with orders for our Eagle Test product lines surging. Smartphone shipments are expected to grow in 2021 after contracting about 10% in 2020 and 5G content should increase. On the other hand, the SOC test market in China will likely be down in 2021 due to the expanded and full year effects of trade restrictions that were widened in 2020. Also as always, tester demand from our largest customer will remain opaque until some time in Q2. Additionally, the global economic impact of COVID and its impact on electronics demand after a surge in 2020, It's hard to forecast with arguments for both positive and negative effects.\nTaking all of that into account, we have a bit wider range in our SOC market size estimate for 2021 at $3.3 billion to $3.8 billion, up slightly from 2020 at the midpoint. In Memory Test, the transition to LPDDR5 and DDR5 should gain momentum in 2021 and beyond. After growing about 50% in 2020, we view the memory market to be in the $800 million to $1 billion range in 2021about even with 2020 at the midpoint.\n", "In Storage Test, the underlying demand drivers of increased density and HDD and increased complexity in Semi Devices driving system level test remain in place. However, visibility is limited and annual shipments can be very lumpy. After more than tripling over the last 3 years, we expect 2021 sales to be in a band of plus or minus 20% from the 2020 level. For the rest of our test businesses, we expect growth in the 5% to 10% range in 2021. In Industrial Automation, 2021 is starting off on a strong footing. Barring any additional COVID related manufacturing sector shutdowns, we expect to deliver the highest ever first quarter sales in each of our automation businesses and we are well positioned to grow in excess of 30% for the year. 2020's results reflect well on Teradyne strategy, execution, and efficiency. Our test businesses show the successful results of R&D bets in years past, and enable us to increase those bets for the future. Our industrial automation investments continue undeterred by short-term impacts of COVID and we are well positioned to capitalize on a world emerging to invest even more in automation to improve resilience and productivity. Equally significant, 2020 shows the resilience of Teradyne employees, our global suppliers, and our operating model. In the face of unimaginable challenges across communities worldwide, the team dealt with health, safety, and operation obstacles daily, met R&D milestones, executed steep new product ramps, and delivered record shipments of SOC, memory and storage test products to meet our customers' needs. We did all this while exercising the cost and schedule discipline expected at Teradyne. This is truly extraordinary and I am very grateful to be part of such a powerful team.\nAs we move into 2021, the outlook appears bright across all our markets. As Sanjay will detail, we are returning to our share repurchase program and have an active M&A pipeline. As 2020 taught us, no matter what comes our way in the short term, I am confident our global team and market strategy will deliver exciting long-term returns for our customers, investors, and employees. Sanjay will now take you through the financial and modeling details. Sanjay?\nSanjay Mehta -- Vice President, Chief Financial Officer\n", "Thank you, Mark. Good morning, everyone. Today, I'll cover the financial highlights of Q4 and review the financial details of 2020. Looking forward, I'll provide our Q1 outlook, an update to our mid-term earnings model, and our capital allocation plans. Now to Q4.\nRevenues were $759 million, which were $19 million above the high end of the guidance range. We delivered a non-GAAP operating profit of 30% and EPS of $1.10. Semi Test revenue of $524 million was driven by SOC and Memory Test demand enabling 5G handsets and higher speed flash and DRAM devices. System test group had revenue of $104 million down quarter-over-quarter driven by lower Storage Test shipments. Industrial automation or IA revenue of $92 million had a seasona" ]

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[ " the U.S., but on a global scale. So three of our big strategies incorporate a global supply chain, which is a key focus, a global tech stack, which we've already started the investment in and making sure that we become one global brand as a company. And you're going to start to see this continue to evolve. Certainly, we want those international markets to open back up and gain more traction as we expected, but we've lost over the last 16 or so months. And then you'll see Wingstop really start to evolve into that global brand well on our way to being one of those top 10 global brands where systemwide revenues should be substantially greater than where they are today. So hopefully, that gives you some context on that.\nAndrew Strelzik -- BMO Capital Markets Equity Research -- Restaurants Analyst\nVery helpful, I appreciate it. Thank you very much\nOperator\nThe next question will come from Michael Tamas with Oppenheimer & Company. Please go ahead.\nMichael A. Tamas -- Oppenheimer & Co. Inc. -- Associate\nHi thanks. You guys talked about your digital evolution as you gain more customers and launching Thighstop virtually. So can you maybe first remind us where does your 25 million customer database stand compared to a year ago or maybe the beginning of this year? And then what's shifting in your data strategy? If you could highlight maybe some of those levers that you believe you have left to pull? Thanks\nCharles R. Morrison -- Chairman, President & CEO\n", "Yes, that database, I don't have a specific number, but I can tell you that even since the pandemic started back in March, April of last year, we were adding new guests at a rate of over one million a month. That's tapered a little bit over the course of the last few months. But nonetheless, it's been a substantial increase. And so it's growing very rapidly. I think the last report out, we had a little over $20 million. We're now up to 25 million. So you get a feel for -- and I think important to recognize, too, our digital mix has maintained and actually increased sequentially quarter-to-quarter, which we think is unique in the marketplace and worth discussion. So as we continue to evolve our approach, we're going to behave a little bit more in a platform manner, making sure that we bring guests closer to us that we spend more time one-to-one engaging with them. We've put a robust CRM system on top of this to make sure we understand a lot more about who they are and driving additional business in the future.\nThe way we can expand on that digitally is to identify their patterns, their preferences, understand more about those customers and bring solutions to them that are tailored specifically to them. So less perhaps of a promotional approach where we have to bring products to the table to demonstrate news and instead focus that attention one-to-one with each and every guest. And that's where the future will be for this brand as we continue to invest heavily in our technology.\nMichael A. Tamas -- Oppenheimer & Co. Inc. -- Associate\nGot you. And then just a follow-up. I think it was Jon's question on your New York City plan. Are there other markets similar to New York City where you're planning to do this strategy? And about how many units do you think annually that might be?\nCharles R. Morrison -- Chairman, President & CEO\n", "Hard to say on how many new units we get, but I think the demonstration of a partnership approach with some of the key ghost kitchen providers is going to be to our advantage. We fit beautifully into those models. We can obviously expand them very rapidly because it doesn't take very long. Once they've got the kitchen in place, we're in. And there -- yes, it takes us maybe six weeks to actually get a restaurant open. So we've really compressed the time line. We already have a lot of experience. London is a great example. What we've done in London to expand that market as rapidly as we have with both street side and ghost kitchens is a playbook that we're using here in Manhattan. Other markets with potential for that, Boston, Philly, San Francisco, we're already " ]

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[ "itioned to navigate through that. We definitely have the technology that is needed to make that lift in China. And our numbers there continue to look very strong.\nSo, it's a great part of the portfolio. It definitely is an opportunity to kind of enrich the technology within those phones. They're still a little bit lighter than some of the flagships that we have in the U.S. But we have to know how to do it.\nThe other thing about the China market is they want integration. They want labs to fast types of products. They want our applications engineers. They need people that can make the job easier for them and fulfill a smooth transition to the consumer.\nSo, all that stuff around the edges, that's our bread and butter. So, we are a great advocate there, and we're a great partner to those OEMs.\nHarsh Kumar -- Piper Sandler -- Analyst\nThanks, Liam.\nOperator\nThank you. Your next question comes from the line of Timothy Arcuri from UBS. Please proceed with your question.\nTimothy Arcuri -- UBS -- Analyst\nThanks a lot. Kris, now that the fiscal year is over, can you give us a sense of what your top customer was for fiscal '21?\nKris Sennesael -- Chief Financial Officer\nYes. The top customer came in at 59% of total revenue on a full-year basis. By the way, in Q4, that was approximately the same 59%, which is slightly up from the Q4 of fiscal '20, which was at 56%. But of course, you have to take into account the timing of the launch of some of the new smartphone platforms there.\n", "I mean, this is a big number, but it really underscores the deep customer engagement that we have with this customer, by the way, not only in their smartphone lineup but almost in every other product that they have and that they sell, you will find Skyworks inside. Also, in Q4, the quarter we just closed, the Skyworks team really executed well, supporting the launch and the ramp of a new smartphone platform that yet again, for now almost 10 or 13 times in a row, we were able to obtain higher dollar content per phone as witnessed by the tier downs that came out when the phone came out. And you can see when you look at the tier downs, we really provided multiple high-performance, very complex, highly integrated solutions, multiple sockets in that form that includes, in many cases, multiple best-in-class filters, including TC-SAW and bulk acoustic wave technology across the transmit chain, the receive chain, as well as many other functionalities, including GPS and WiFi, of course. So, great execution there by the team.\nTimothy Arcuri -- UBS -- Analyst\nThanks a lot for that, Kris. I guess as my follow-up, there's kind of a lot of noise in the China market. I know that you don't have as much exposure to the domestic market or at least the Chinese OEMs as some of your peers do, but there's some diverging data points. I mean, end market sell-through is not great.\nBut definitely, the high tier seems pretty tight. So, can you just talk about what you're seeing in China maybe -- and maybe you can have a distinction between sell-in and sell-through? Thanks.\nLiam Griffin -- Chairman, Chief Executive Officer, and President\nYeah. I mean, the China market is important to us, and we've played that quite well. We have great partnerships with all the leading brands. I think the key here, and Kris kind of mentioned it, it's all about performance.\nIt's not just -- it's not phone to phone, it's technology to technology. And you see a very, very different technology in the higher-end players in China, where they are embracing the kinds of increasingly complex signals that Kris mentioned, using bulk acoustic wave, using our TC-SAW, using an integrated approach, a Sky5 approach. In that side of the field, it's great, and we have a tremendous opportunity. We're continuing to grow the content because the complexity is going up.\n", "The complexity is what's driving the content. So, we're making that adoption happen rapidly depending -- independent of market conditions. And we're also trying to uplift the lower end. There's still a pretty high percentage of lower-end phones in China that we" ]

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[ "'s pea protein or specialty proteins in Campo Grande. So, we're going to have harvesting for many years down the road, hopefully.\nI would say the 2021 is a year of heavier investments, if you will. Again, another round of investment. Some of those things are capabilities, whether it is customer insights and marketing, whether it is new digital connections to customers, new models to innovate virtually. And even a lot of organic growth. We have -- we kind of went live in organic growth projects in animal nutrition during 2020 because we were working on the synergies. And to be honest, because the COVID environment didn't allow for a lot of project work. And now, we are going into more of that. So, you're going to see 2021 being a little bit heavier investments in that, in capabilities and plants.\nAnd we see -- some of these, you don't see because it's building the foundations. We are a science-based nutrition company. But you see, for example, in the quarter, we got two awards. We got the FiE award for innovation in pea protein and we got the BIG Innovation Award for BPL1, one of our probiotics. So, we continue to invest in science, in customer insights and in organic growth in this business as we harvest -- and the harvesting, you see in how our ROIC continues to grow in that business. And you see the success of our value proposition in how the EBITDA margins continue to grow in our business.\nSo, we are very happy. But, Eric, we are at the early stages of building the best nutrition company out there. We are probably halfway through that build.\nEric Larson -- Seaport Global Securities LLC -- Analyst\n", "Okay, great. Thanks for the color there. So, Juan, the question that I haven't -- you've talked a lot about demand around the world, which is even surprisingly strong despite the grain pricing environment that we have, which is pretty high, and we're still seeing good exports, but when you look at the US crop, upcoming planting season this year, you look at what's going on in South America, which is -- clearly, the world needed 140 million metric tons of soybeans out of Brazil and they're not going to get that. We're seeing wheat in Russia. It seems to me when you just put all the numbers together on a global basis, we are not going to rebuild these global supplies in a single year. It might take a couple of years of good weather and all of that to sustain demand. Can you kind of encapsulate how ADM is looking at the next two years regarding demand and supply of global grains?\nJuan R. Luciano -- Chairman of the Board of Directors, President and Chief Executive Officer\nYes. We see an environment of real demand, real effective demand happening out there. And to be honest, our customers don't have a lot of inventory because everybody has been destocking, going hand to mouth with this inverse. So, we see truly a strong demand. And tight balance sheets. As you said, corn and oilseeds, I think they're going to touch a pipeline balance sheet. Wheat is a little bit stronger, but the Black Sea has not had a great wheat season, although Australia has a wheat growing season. So, we see -- this is going to take 18 to 24 months for this supply demand balances to be rebuilt. So, we see these conditions subsisting for the next couple of years, even with farmers, imagine like you, trying to plant more because I think that these prices will bring more acres into production. But we need those extra acres right now.\nEric Larson -- Seaport Global Securities LLC -- Analyst\nYeah. Not only plant more acres, but we'll also try to maximize our yield. So, it's a combination of both. So, thank you, gentlemen. I'll pass it on.\nJuan R. Luciano -- Chairman of the Board of Directors, President and Chief Executive Officer\nThank you, Eric.\nOperator\nYour final question is from Ben Theurer of Barclays.\nBenjamin Theurer -- Barclays Capital -- Analyst\n", "Yeah. Good morning, Juan, Ray. And congrats on the results. Just wanted to follow up on the CapEx related to the different businesses. And clearly, you've been putting a lot of emphasis on the growth and the prospe" ]

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[ "enable our associates to work safely and continue to meet our customers' demands. We also continue to drive the operational imperatives we outlined in 2020 and recommitted to in 2021 to reduce cost and improve our operations globally. We are making very good progress on these imperatives, notwithstanding the challenges created by COVID-19.\nTurning to slide six. I'll now give you a quick update of our global operations as well as a market update. During the fourth quarter, we continued to operate all of our facilities at normal levels. In China, we delivered more volume than our original 2020 plan, demonstrating what an outstanding group of associates we have there. However, at the start of 2021, five lines were removed from production, and we expect the remaining lines will run at lower utilization during 2021, and therefore our volumes will be down year-over-year in China. We will continue to explore opportunities for that capacity, including Chinese OEMs, but the shifting of capacity from geography to geography over time is consistent with our strategy to manage risk and optimize our footprint to enable the highest utilization and competitive advantage for TPI and our customers.\n", "In India, we ramped up the first four lines of the facility for Vestas, and we are starting production on two lines for Nordex as we speak. The Vestas ramp went remarkably well, even though we were in the middle of a pandemic. In Turkey, production continued as normal, while we started the transition of three lines during the fourth quarter. That transition is continuing into the first quarter of 2021. In Mexico, production also continued at normal levels. We are currently in the midst of a transition of two lines in Matamoros as well as one line in Juarez. And we plan on having as many as seven more lines in transition in Mexico during 2021. In the U.S., blade and transportation production has continued uninterrupted. On the service side of the business, we made very nice progress in 2020, securing new deals with OEMs as well as asset owners, and are working hard to build out our global service team to execute our growth strategy in 2021 and beyond. To accelerate our growth and to deal with the shortage of qualified technicians, we opened a new training center in Santa Teresa, New Mexico to increase our training capabilities and support our rapidly growing need for qualified blade service technicians. We are also continuing to evaluate blade recycling options and look forward to being able to share more on this effort during 2021 as some significant progress was made during 2020. The global transportation industry is working to rapidly increase the electrification of vehicles to reduce the impact on the environment.\nAccording to BloombergNEF, electric bus sales are anticipated to grow almost threefold in the U.S. from 2021 to 2025. The sales of commercial electric vehicles are expected to grow into the hundreds of thousands by 2030 as e-commerce continues to rapidly rise and consumers are driving demand higher for passenger electric vehicles. We expect there will be an increased demand for composite components and structures for electric vehicles, as composite material systems can be the key material building blocks for purpose-built vehicles. Our composite solutions are ideally suited for transportation applications because of the benefits resulting from weight reduction and therefore extended range for EVs, corrosion resistance, strength, durability, the ability to scale production with lower upfront production investment, and lower total cost of ownership for end users. The level of interest in our capabilities continues to grow. We are collaborating with our customers to develop innovative composite solutions for vehicles across passenger automotive, bus, truck and delivery vehicles.\n", "Today, we are building composite bodies for buses and delivery vehicles, collaborating on Class eight vehicle programs and manufacturing components for multiple passenger EV platforms. Since 2018, we have invested approximately $50 million in our transportatio" ]

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[ "d operating margin to be in the range of 23.5% to 24%.\nThat covers the 2020 guidance. Before discussing our preliminary 2021 targets, we want to remind you that the views we have today are subject to a variety of factors that may manifest themselves over the upcoming months. And hence, are subject to change, so appropriately conservative for the environment in which we are operating. We expect to provide formal 2021 guidance on our 4Q, 2020 call next year. One final note before going further, our preliminary 2021 targets reflect year-over-year growth rates that are based on the midpoint of our updated 2020 guidance for the respective metrics.\nSo at a high level, we view 2021 currently as a tale of two halves. Specifically we expect H2 will be stronger than H1 provided an economic recovery picks up steam in the back half of the year. Our continued business transition is masking our underlying growth and value creation, due to both license are trading to cloud and global Tier 1 customers ramping up their global footprints over multiple periods. We continue to believe RPO is the best go-forward metric in tracking the progress of our transition.\nOur 2021 full-year total revenue range is now expected to be between $585 million to $625 million, representing a 1% to 8% year-over-year growth range. Our target objective is to achieve $605 million, representing 5% growth, excluding our declining license impact year-over-year total revenue growth is 8%.\nAs you know Q1, 2020 was an all-time record Q1 revenue performance pre-COVID creating a tough comp for Q1 2021. We expect Q1, 2021 total revenue to be down 7% to 9% over Q1, 2020. We expect our H1 total revenue split to be about $292 million with 1% year-over-year growth given the Q1 COVID comp and H2 split to be about $313 million, this is the revenue split with a 9% growth rate.\n", "For software revenue, we are estimating $123 million to $130 million with a midpoint growth of 13%. We are targeting a $108 million to $110 million in cloud growth with midpoint growth of about 40%. Importantly, we expect license revenue to decline, almost 50% in 2021, as customers and prospects choose our cloud solutions. License revenue will be in the $15 million to $20 million range with a midpoint of $17.5 million.\nRegarding 2021, RPO our preliminary estimate is between $385 million to $390 million, up about 40% over 2020. And as Eddie mentioned we are off to a very good start in Q4 on strong cloud demand. With the backdrop of COVID, government elections and retail peak season in play and a second full selling quarter of Manhattan Active WM under our belt, this will certainly help us calibrate the camshafts on our RPO entering 2021.\nFor consulting services, we are targeting $306 million to $334 million with a $320 million midpoint, representing about 5% year-over-year growth. We expect H1 revenue to be down about 3% to 5% year-over-year with Q1 being down 15% against 2020's record services comp. The rate of year-over-year growth in services will be dictated by the pace and cadence of economic recovery for the balance of 2021.\nAnd for maintenance, we are estimating $140 million to $145 million or 4% decline to flat growth year-over-year, as we expect more existing customers to convert to cloud subscriptions. That covers the critical revenue targets.\nOur full-year 2021 adjusted earnings per share range is $1.37 to $1.54 with a midpoint of $1.46. H1 to H2 percentage splits will be 45% H1 and 55% H2 for the annual EPS splits. Q1 will be our lowest EPS quarter totaling about 21% of full-year EPS or $0.31. The primary drivers of lower year-over-year earnings per share is related to three major components. First, the continued decline of license revenue. Second, the reversal of prior cost actions we took in April of this year. And third, continued strategic investments in innovation and tooling for cloud ops to execute on the cloud growth we see in front of us.\n", "Adjusted operating margin is expected to decline year-over-year to 20% to 21%, reflecting the operating imperatives covered in our outlook for EPS. Yo" ]

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[ "itioned to navigate through that. We definitely have the technology that is needed to make that lift in China. And our numbers there continue to look very strong.\nSo, it's a great part of the portfolio. It definitely is an opportunity to kind of enrich the technology within those phones. They're still a little bit lighter than some of the flagships that we have in the U.S. But we have to know how to do it.\nThe other thing about the China market is they want integration. They want labs to fast types of products. They want our applications engineers. They need people that can make the job easier for them and fulfill a smooth transition to the consumer.\nSo, all that stuff around the edges, that's our bread and butter. So, we are a great advocate there, and we're a great partner to those OEMs.\nHarsh Kumar -- Piper Sandler -- Analyst\nThanks, Liam.\nOperator\nThank you. Your next question comes from the line of Timothy Arcuri from UBS. Please proceed with your question.\nTimothy Arcuri -- UBS -- Analyst\nThanks a lot. Kris, now that the fiscal year is over, can you give us a sense of what your top customer was for fiscal '21?\nKris Sennesael -- Chief Financial Officer\nYes. The top customer came in at 59% of total revenue on a full-year basis. By the way, in Q4, that was approximately the same 59%, which is slightly up from the Q4 of fiscal '20, which was at 56%. But of course, you have to take into account the timing of the launch of some of the new smartphone platforms there.\n", "I mean, this is a big number, but it really underscores the deep customer engagement that we have with this customer, by the way, not only in their smartphone lineup but almost in every other product that they have and that they sell, you will find Skyworks inside. Also, in Q4, the quarter we just closed, the Skyworks team really executed well, supporting the launch and the ramp of a new smartphone platform that yet again, for now almost 10 or 13 times in a row, we were able to obtain higher dollar content per phone as witnessed by the tier downs that came out when the phone came out. And you can see when you look at the tier downs, we really provided multiple high-performance, very complex, highly integrated solutions, multiple sockets in that form that includes, in many cases, multiple best-in-class filters, including TC-SAW and bulk acoustic wave technology across the transmit chain, the receive chain, as well as many other functionalities, including GPS and WiFi, of course. So, great execution there by the team.\nTimothy Arcuri -- UBS -- Analyst\nThanks a lot for that, Kris. I guess as my follow-up, there's kind of a lot of noise in the China market. I know that you don't have as much exposure to the domestic market or at least the Chinese OEMs as some of your peers do, but there's some diverging data points. I mean, end market sell-through is not great.\nBut definitely, the high tier seems pretty tight. So, can you just talk about what you're seeing in China maybe -- and maybe you can have a distinction between sell-in and sell-through? Thanks.\nLiam Griffin -- Chairman, Chief Executive Officer, and President\nYeah. I mean, the China market is important to us, and we've played that quite well. We have great partnerships with all the leading brands. I think the key here, and Kris kind of mentioned it, it's all about performance.\nIt's not just -- it's not phone to phone, it's technology to technology. And you see a very, very different technology in the higher-end players in China, where they are embracing the kinds of increasingly complex signals that Kris mentioned, using bulk acoustic wave, using our TC-SAW, using an integrated approach, a Sky5 approach. In that side of the field, it's great, and we have a tremendous opportunity. We're continuing to grow the content because the complexity is going up.\n", "The complexity is what's driving the content. So, we're making that adoption happen rapidly depending -- independent of market conditions. And we're also trying to uplift the lower end. There's still a pretty high percentage of lower-end phones in China that we" ]

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[ "obably be able to demo or could do POCs with the customers out there and really fully operational systems about that number. We target a year, but it's a very aggressive type of targeting, about a year after tape-out. Usually, somewhere between a year and 18 months is the more type of reasonable type of assumption for getting a product out.\nBut let's remember that this is not the whole strategy. This is the longer-term strategy. The 5G deployment strategy that we're doing today is done around the products we just released over the last two quarters around our IP-50 family, which is winning in the markets right now. The whole chipset is targeted for the second wave of 5G when capacities really, really soar.\nFor the current design wins and that we're having and where we have a significant lead over the competition, the 50 family gives us the capabilities, both for 20 gigs in E-band, gives us capabilities like very wide channels in Europe for winning -- for being able to deploy macro 5G base stations with 4 and 8-gig capabilities with very, very small footprint. So, it's a whole evolution which I mentioned. And I think that's the same story we had around the 4G, it's a set of products that continuously rides the wave, starts with a certain sort of products in which we have ready at this point, and then additional products and services both in the radio domain, in the networking domain, in the management domains which help the customers really deploy the 5G. So, it's that whole sequence that we are walking -- deployed walking with customers and it's not just one point of time which is OK, yes, that's the next step, a very important step, a leading step, which I think very hard for others will be to catch up there, but that's only part of the story.\n", "The whole story is the whole strategy we've been building on how do we very fast ride the 5G wave in different places around the world starting in Europe, U.S., Pacific Rim, and then later on a in the emerging market types of places where we have seen that. As an interesting point on this, we've been talking that we won and we moved in the last quarter from five to nine design wins, an interesting point this quarter, I think we are close to 10. I got news from one customer, a very important one, that they selected us and -- but I want to see I'll count it as 10 when I'll see the official paper on the table.\nGeorge Iwanyc -- Oppenheimer & Co. Inc. -- Analyst\nOK. And then, I guess following up on the -- the 9, 10 design wins. Can you give us a sense of how rich the pipeline activity is both on the 4G side and the 5G side for the -- the next six months? And then, just maybe a bigger picture question about that which will be my last question. It's like the puts and takes on your annual guidance like what -- what would be something that accelerates it toward the higher end and what would pull it down toward the lower end of the range?\nIra Palti -- President and Chief Executive Officer\nSo, let's start, because I think the questions were focused on the profitability, but let's start with Q4 and the pipeline. Q4 was at the high end of our revenue run rate. '19 -- even with COVID we had higher bookings than we had in 2019. So, in 2020, higher bookings with COVID, around 4G, a little bit than in '19.\nSo, we are running. And I think that we're running in two areas. One, we continue to see significant 4G deployments in a lot of places where we do not see 5G yet for all sorts of reasons like handset pricing, technology readiness, and others, and people are deploying and delivering still a lot of capacity around 4G. See India, see Africa, see LatAm -- LatAm alone time slowed down because of capex from COVID in different places.\n", "The 5G that we see right now and as the pipeline on the table, not large, and that's why we say the second half. Reason is that when we look at the 5G design wins, they are all initial deployments where we start to see the deployments. The initial deployments are mainly on fiber. I won't say even the second wave, but it's when you start going a little bit outside the cen" ]

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[ "fficer\nSo John, just kind of commenting briefly on the level of activity we are seeing because that, in many ways, is that leading indicator. So we're seeing proposal activity increasing. We're seeing that increasing in the U.S. We're seeing it increasing across Asia. I think about China, South Korea, India, a couple of the ASEAN markets as well. So we're seeing a lot more projects. Now, a part of these projects are electronics. You've heard me talk about electronics before, what a strong growth we've seen in the quarter. And my expectation is that we will see a lot more of electronic project growth happen as we see these new fab buildups happen as well. They are progressing well. They are all on track, and you've seen a number of announcements, I'm sure, from TSMC, Samsung, Intel and so on and so forth. So those are all looking to be on track and part of that activity. I also have to say that the other piece I'm a little more -- I'm a little more positive on is the more traditional markets, steel, chemicals, refining, also project activity actually picking up over there as we see. So I'm not going to comment particularly on if we are seeing potentially this as a snapback. I see this as fundamental underlying activity picking up and translating them into projects that people are pursuing, and we are getting a chance to participate in.\nJohn McNulty -- BMO Capital Markets -- Analyst\nGreat. Thanks very much for the color.\nOperator\nThank you. And our next question comes from Peter Clark from Societe Generale. Your line is open.\nPeter Clark -- Societe Generale -- Analyst\n", "Yes. Good afternoon everyone. I've got two questions. First one for Sanjiv, I think. About the productivity being embedded, obviously, in the PLC. Is the story now on productivity more about not adding costs back if the volumes continue to grow rather than savage cost cutting as such? Because I did notice, obviously, Q4 -- we'll get the Q1 numbers later in terms of the headcount and the severance costs. But they did slow, obviously, in the fourth quarter from the pace earlier in the year. And then for Matt, on the cash flow, I mean, the Q1 performance now is what we would normally see in the legacy companies, usually in Q4, which is normally the strongest quarter. I'm just wondering how that progresses through the year, given that you always make more money in the second half? Thank you.\nSanjiv Lamba -- Executive Vice President and Chief Operating Officer\nPeter, thanks. I'm going to give you a quick view on productivity. So you've heard me say this before, and I think Matt kind of made a very good observation earlier on, which is that we are always going to be very, very focused on managing our cost base. Our total cash fixed cost is something we kind of discuss every month at the business reviews that we carry out. So adding cost back is something we kind of manage actively. I think it doesn't necessarily translate into productivity because for productivity, we want to see that incremental action as well, which makes it tough. But it is in the DNA of the organization, Peter, and you've heard me talk kind of passionately about the fact that every individual in our organization has got a mandate to go out and look for productivity every day.\n", "It's thousands of projects, which add small benefits but actually flow into the entire productivity part that we put together. There's one other thing which I think is now enabling that or helping us accelerate that, and that's around digitalization. And again, hopefully, you've heard me speak about this as well before. We're using digitalization, not as a significant tool that's going to create Earth-shattering new discoveries for us, but it's something that we apply in our business to deal with pain points every day. Our organizational model is embedded within the organization. So digital kind of expertise is being built up within every business across the world, and we are encouraging them. And in fact, I track it every quarter to ask them what percentage of productivity is coming from digital work or initiatives that w" ]

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[ "icant do you anticipate the 5G rollout could be to overall ThingWorx adoption in the near term?\nJames Heppelmann -- President and Chief Executive Officer\nWell, I think it's very helpful. It's 1 more reason why industrial companies should go back into their factories and look to make changes. If somebody's going to put in 5G, they're going to put in an application like ThingWorx at the same time because if you suddenly have all this access to data and mobility and high speed connectivity, what are you going to do with all the data? And that's really where ThingWorx and ultimately, Vuforia and products like that fit in. So I think 5G is helpful. It's a tailwind.\nWe've been building a decent business without 5G, but 5G is certainly in the category of nice tailwind more so than anything else.\nOperator\nAnd your next question is from Adam Borg with Stifel.\nAdam Borg -- Stifel -- Analyst\nMaybe for Jim, just on Rockwell, it was great to see the strength in the quarter on the partnership. And I was just curious, it's always been a couple of quarters since that new extended agreement that you guys have had, expanding beyond IoT. And I'm just curious, was this strength that you've seen, just focused on the IoT and AR side? Or was there any early green shoots around Rockwell being able to sell Windchill and Onshape?\nJames Heppelmann -- President and Chief Executive Officer\n", "No. I mean, honestly, and I would characterize it as IoT and AR. Rockwell, and I think I was transparent on this. That new agreement gave Rockwell the right to sell more products because sometimes they come across those opportunities. But it wasn't really changing the center of gravity of the partnership. I think if you look at what's driving a little more momentum with Rockwell, it's 2 things. First of all, Rockwell brought in some new talent. And I'll just say from the sidelines as a partner, these guys are making a difference. They're shaking some things up and really creating some energy. And then the second thing is Rockwell had a good quarter overall. Particularly on the orders front. I saw they announced today and their order book was up double digits and so forth. So I imagine some of those orders ended up flowing our way. So I think it's really more improving economic situation in the world of industrial automation, coupled by new talent.\nIt's not really a mix shift in the product line up to sell it.\nOperator\nAnd next question is from Sterling Auty with JPMorgan.\nMile -- JPMorgan -- Analyst\nThis is Mile on for Sterling. I was hoping you could just maybe give more of a demand breakdown between CAD, PLM, IoT and AR? And then are there any vertical end markets that you aren't seeing a bounce back in demand yet as the economy is reopening?\nJames Heppelmann -- President and Chief Executive Officer\nOkay. The first part of your question was breakdown demand between Creo and Windchill? Did I get that right? The whole portfolio? Well, I think the demand sort of mirrors the growth rates. As you might expect, some of the products with the highest growth rate, of course, in order to sustain those growth rates, they have the highest bookings. And in some cases, higher churn as well with newer technologies and so forth. And then when you get to a product like Creo, churn is very low. So we can build a growth business of less aggressive bookings coming in the top. So I would say, yes, demand is strongest for Vuforia and Onshape. At the next level, it's really ThingWorx. And then below that, PLM and below that CAD, just in terms of demand.\n", "But it's again a function of the maturity of these products. It's a function of the growth rate of the markets, which is sort of a function of the maturity of the markets and so forth. Hopefully, that hits your question. I guess it was the second part, I mean.\nOperator\nAnd for our last question, we have Jason Celino with KeyBanc Capital.\nJason Celino -- KeyBanc Capital -- Analyst\nPLM, very helpful slide, as always, it's been quite strong for a couple of quarters now, but maybe taking a step down in terms of the strength, customer size " ]

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[ "based on the automotive, clearly you see more semiconductor in the latest via 5G phones. You've seen the AIP. You have seen the fan-out module. You have seen the PA. You're also seeing more semiconductor content. But in terms of the packaging,versus your overall increase in semiconductor content, my perspective is you will see that percentage going up. I don't believe the packaging costs should be going up as fast as foundry. Because the foundry, the investment versus return, the business model are completely different. But I do believe, because of the complexity and the nature of the heterogenous integration, you will see the packaging content, when you normalize things, I do believe that trend is going up.\nZheng Lu -- Goldman Sachs Group, Inc. -- Analyst\nYeah. But what's difficult for us to see that from the revenue growth side because -- for example, like smartphone chip, it's so clear for the wafer side, but it's not clear at all for the packaging side. So it's difficult for us. Can you give us certain quantitative analysis for that?\nTien Yu Wu -- Group Chief Operating Officer\nI don't think I have that number. My apologies.\nZheng Lu -- Goldman Sachs Group, Inc. -- Analyst\nNo worries. So the next question -- I'm sorry?\nTien Yu Wu -- Group Chief Operating Officer\nYeah, go ahead.\nZheng Lu -- Goldman Sachs Group, Inc. -- Analyst\nOkay. So the next question is that one of your supply chain got serious fire a couple of days ago. What kind of impact to your business? Because one of the key customers is your key customers as well. So what kind of business impact you included in your forecast for the fourth quarter?\nTien Yu Wu -- Group Chief Operating Officer\n", "Well, thank you for asking that question. We will not comment on that particular incident because we're still going through the clarification. So we're waiting for further report. But having said that, we do have multiple important customers who are affected by this particular fire. But just like all of the supply chain scenario, when you have a position, chances are, it is easier for us to go through the supply chain and get replacement as well as get priority. During the last two days, we have collaborated with all of our customers. So I can tell you with confidence in Q4, our revenue has already been factored and impact is less than 1%. So that has already been factored in. Today, we're working on the alternative supply for all of the key customers in the -- of our global substrate suppliers. We believe the situation is complicated, but like everything in the past, this is not the first time we encountered supply chain disruption. We had much worse scenario and we handled that pretty well. In this round, I hope our particular partner in Taiwan can recover soon. But as of today, the situation is manageable.\nZheng Lu -- Goldman Sachs Group, Inc. -- Analyst\nOkay. Can ask one more question, which is for the ASP. Management was talking about ASP will be friendly in 2021. Does that friendly situation only happens in wirebond or it happens in chip testing or overall? And what about the SiP pricing environment?\nTien Yu Wu -- Group Chief Operating Officer\nAll right. I guess the best way to answer is the -- it's more friendly in wirebond. Other products are also friendly compared to last year. All right. My apology. That's pretty much all I can tell you.\nZheng Lu -- Goldman Sachs Group, Inc. -- Analyst\nHow about SiP?\nTien Yu Wu -- Group Chief Operating Officer\nSiP, same. Because chances are, when you have like an allocation in a particular package type, it basically cascaded down to all other products.\nZheng Lu -- Goldman Sachs Group, Inc. -- Analyst\nOkay, thank you. I'll go back to the queue.\nOperator\nNow the line is open to Szeho Ng, China Resonance. Go ahead please.\nSzeho Ng -- China Renaissance Securities (US) Inc. -- Analyst\n", "Hi, good afternoon, gentlemen. My first question is regarding the capex. You mentioned that next year's capex will be going back to the 2018 level. That would represent quite a sharp drop compared with this year's level. So I just wondered, which areas " ]

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[ " the corporate average obviously.\nSo could you give us a view of the parts of businesses where you're getting more traction? And what should continue to work here in the second half despite the comments you made about China and a couple other geographies? Just help us understand what you continue to accelerate in the Project Accelerate or where else that can help.\nFrank Laukien -- President and Chief Executive Officer\nYes. I mean, not very much change, Puneet, from what we discussed in New York. So also, high field structural biology, we're optimistic about that. That's progressing, and we expect that to hopefully continue to ramp up in the next year.\nMicrobiology is doing really quite well, so that continues to be in a good trajectory. Proteomics or omics in general, we're seeing, you know, early, early, early growth there. It's not enormous for us yet, but it's becoming -- as we had predicted at the beginning of the year, it's beginning to kick in to where it is, beginning to positively move the needle. And our pharma business, our pharma business has continued to grow in terms of revenue very significantly.\nThat's also worked well for us last year, if you recall. So on the negative side, semiconductor isn't recovering. It's not recovering in the second half of this year as some might have hoped earlier in the year. We actually didn't bet on that anyway.\nAnd so now, it's predicted. So I'd say those -- all the drivers are more or less along the lines of what we discussed in New York at the investor day. So a lot of good secular trends that we've positioned now, a lot of good product innovation. So with that, even with a potentially weaker or likely weakening China and weakening industrial, I think we will continue to do quite well.\nPuneet Souda -- SVB Leerink -- Analyst\n", "OK. Thanks. And then on the NMR front, could you tell us where the 1 gigahertz, was it North America, Europe and other geography? And then one of those is in the revenues, but [Inaudible] are suggesting there is another gigahertz in the field at the customer lab already installed and operating. So just trying to understand sort of what's keeping that out of the guidance that's still in the second half here? And then what's maybe the caution there? And then when should we expect the 1.2 gigahertz within the factory to be shipped out to the customer? I assume that's a 2020 event.\nThank you.\nFrank Laukien -- President and Chief Executive Officer\nRight. Working backwards then. 1.2 gigahertz shipment from factories. We have not set a target date for that.\nI would tend to agree with you that's more likely to be -- I mean, it's certainly not a 2019 revenue event. That's impossible. And when exactly we ship that, perhaps this winter. But that could obviously also go into 2020.\nAnd then typically, it takes more months to install those. So there's more uncertainty around that. Then the 1.0 gigahertz on which we had revenue recognition was in Israel, and we are, as you know, we've shipped another 1.0 gigahertz. We're not guiding one way or another of whether that's going to be in our revenue in the second half of the year.\nAnd we're not reluctant about that. It is just something that we -- we can't really call the quarter when these things happen. And maybe the one thing, if I may add to that, don't think of those generally as something that's on top of everything else sort of as a bonus in the quarter. We look at our acquired growth.\nWe look at our best growth. We look of course where there's a gigahertz in the mix or not in any given quarter. And then you know, those are all the pieces along that we've used for planning our quarters to try to deliver and beat the quarters if we can. And of course, with a full focus on the annual guidance to which we are committed.\n", "So in short, we're not guiding on this one way or the other. It is possible that a second one could be in revenue, but we're non-committal about it simply because it's not that easy to predict. It also doesn't matter that much. It's not something that we couldn't come on top of everything.\nSo whatever w" ]

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[ " the corporate average obviously.\nSo could you give us a view of the parts of businesses where you're getting more traction? And what should continue to work here in the second half despite the comments you made about China and a couple other geographies? Just help us understand what you continue to accelerate in the Project Accelerate or where else that can help.\nFrank Laukien -- President and Chief Executive Officer\nYes. I mean, not very much change, Puneet, from what we discussed in New York. So also, high field structural biology, we're optimistic about that. That's progressing, and we expect that to hopefully continue to ramp up in the next year.\nMicrobiology is doing really quite well, so that continues to be in a good trajectory. Proteomics or omics in general, we're seeing, you know, early, early, early growth there. It's not enormous for us yet, but it's becoming -- as we had predicted at the beginning of the year, it's beginning to kick in to where it is, beginning to positively move the needle. And our pharma business, our pharma business has continued to grow in terms of revenue very significantly.\nThat's also worked well for us last year, if you recall. So on the negative side, semiconductor isn't recovering. It's not recovering in the second half of this year as some might have hoped earlier in the year. We actually didn't bet on that anyway.\nAnd so now, it's predicted. So I'd say those -- all the drivers are more or less along the lines of what we discussed in New York at the investor day. So a lot of good secular trends that we've positioned now, a lot of good product innovation. So with that, even with a potentially weaker or likely weakening China and weakening industrial, I think we will continue to do quite well.\nPuneet Souda -- SVB Leerink -- Analyst\n", "OK. Thanks. And then on the NMR front, could you tell us where the 1 gigahertz, was it North America, Europe and other geography? And then one of those is in the revenues, but [Inaudible] are suggesting there is another gigahertz in the field at the customer lab already installed and operating. So just trying to understand sort of what's keeping that out of the guidance that's still in the second half here? And then what's maybe the caution there? And then when should we expect the 1.2 gigahertz within the factory to be shipped out to the customer? I assume that's a 2020 event.\nThank you.\nFrank Laukien -- President and Chief Executive Officer\nRight. Working backwards then. 1.2 gigahertz shipment from factories. We have not set a target date for that.\nI would tend to agree with you that's more likely to be -- I mean, it's certainly not a 2019 revenue event. That's impossible. And when exactly we ship that, perhaps this winter. But that could obviously also go into 2020.\nAnd then typically, it takes more months to install those. So there's more uncertainty around that. Then the 1.0 gigahertz on which we had revenue recognition was in Israel, and we are, as you know, we've shipped another 1.0 gigahertz. We're not guiding one way or another of whether that's going to be in our revenue in the second half of the year.\nAnd we're not reluctant about that. It is just something that we -- we can't really call the quarter when these things happen. And maybe the one thing, if I may add to that, don't think of those generally as something that's on top of everything else sort of as a bonus in the quarter. We look at our acquired growth.\nWe look at our best growth. We look of course where there's a gigahertz in the mix or not in any given quarter. And then you know, those are all the pieces along that we've used for planning our quarters to try to deliver and beat the quarters if we can. And of course, with a full focus on the annual guidance to which we are committed.\n", "So in short, we're not guiding on this one way or the other. It is possible that a second one could be in revenue, but we're non-committal about it simply because it's not that easy to predict. It also doesn't matter that much. It's not something that we couldn't come on top of everything.\nSo whatever w" ]

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[ "The Spanish–American War (April 21 – August 13, 1898) began in the aftermath of the internal explosion of USS Maine in Havana Harbor in Cuba, leading to United States intervention in the Cuban War of Independence. The war led to the United States emerging predominant in the Caribbean region, and resulted in U.S. acquisition of Spain's Pacific possessions. It led to United States involvement in the Philippine Revolution and later to the Philippine–American War.\n\nThe 19th century represented a clear decline for the Spanish Empire, while the United States went from becoming a newly founded country to being a medium regional power. In the Spanish case, the descent, which already came from previous centuries, accelerated first with the Napoleonic invasion, which in turn would cause the independence of a large part of the American colonies, and later political instability (pronouncements, revolutions, civil wars) bled the country socially and economically. The U.S., on the other hand, expanded economically throughout that century by purchasing territories such as Louisiana and Alaska, militarily by actions such as the Mexican–American War, and by receiving large numbers of immigrants. That process was interrupted only for a few years by the American Civil War and Reconstruction era.\n\nThe main issue was Cuban independence. Revolts had been occurring for some years in Cuba against Spanish colonial rule. The United States backed these revolts upon entering the Spanish–American War. There had been war scares before, as in the Virginius Affair in 1873. But in the late 1890s, American public opinion swayed in support of the rebellion because of reports of concentration camps set up to control the populace. Yellow journalism exaggerated the atrocities to further increase public fervor and to sell more newspapers and magazines.\n\nThe business community had just recovered from a deep depression and feared that a war would reverse the gains. Accordingly, most business interests lobbied vigorously against going to war. President William McKinley ignored the exaggerated news reporting and sought a peaceful settlement. Though not seeking a war, McKinley made preparations for readiness against one. He unsuccessfully sought accommodation with Spain on the issue of independence for Cuba. However, after the U.S. Navy armored cruiser Maine mysteriously exploded and sank in Havana Harbor on February 15, 1898, political pressures pushed McKinley into a war that he had wished to avoid.\n\n", "As far as Spain was concerned, there was a nationalist agitation, in which the written press had a key influence, causing the Spanish government to not give in and abandon Cuba as it had abandoned Spanish Florida when faced with a troublesome colonial situation there, transferring it to the U.S. in 1821 in exchange for payment of Spanish debts. If the Spanish government had transferred Cuba it would have been seen as a betrayal by a part of Spanish society and there would probably have been a new revolution. So the government preferred to wage a lost war beforehand, rather than risk a revolution, opting for a \"controlled demolition\" to preserve the Restoration Regime.\n\nOn April 20, 1898, McKinley signed a joint Congressional resolution demanding Spanish withdrawal and authorizing the President to use military force to help Cuba gain independence. In response, Spain severed diplomatic relations with the United States on April 21. On the same day, the United States Navy began a blockade of Cuba. Both sides declared war; neither had allies.\n\nThe 10-week war was fought in both the Caribbean and the Pacific. As United States agitators for war well knew, United States naval power would prove decisive, allowing expeditionary forces to disembark in Cuba against a Spanish garrison already facing nationwide Cuban insurgent attacks and further devastated by yellow fever. The invaders obtained the surrender of Santiago de Cuba and Manila despite the good performance of some Spanish infantry units, and fierce fighting for positions such as El Caney and San Juan Hill. Madrid sued for peace after two Spanish squadrons were sunk in the battles of Santiago de Cuba and Manila Bay, and a third, more modern fleet was recalled home to protect the Spanish coasts.\n\nThe war ended with the 1898 Treaty of Paris, negotiated on terms favorable to the United States. The treaty ceded ownership of Puerto Rico, Guam, and the Philippines from Spain to the United States and granted the United States temporary control of Cuba. The cession of the Philippines involved payment of $20 million ($650 million today) to Spain by the U.S. to cover infrastructure owned by Spain.\n\n", "The Spanish–American War brought an end to almost four centuries of Spanish presence in the Americas, Asia, and the Pacific. The defeat and loss of the Spanish Empire's last remnants was a profound shock to Spain's national psyche and provoked a thorough philosophical and artistic reevaluation of Spanish society known as the Generation of '98. The United States meanwhile not only became a major power, but also gained several island possessions spanning the globe, which provoked rancorous debate over the wisdom of expansionism." ]

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[ "obably be able to demo or could do POCs with the customers out there and really fully operational systems about that number. We target a year, but it's a very aggressive type of targeting, about a year after tape-out. Usually, somewhere between a year and 18 months is the more type of reasonable type of assumption for getting a product out.\nBut let's remember that this is not the whole strategy. This is the longer-term strategy. The 5G deployment strategy that we're doing today is done around the products we just released over the last two quarters around our IP-50 family, which is winning in the markets right now. The whole chipset is targeted for the second wave of 5G when capacities really, really soar.\nFor the current design wins and that we're having and where we have a significant lead over the competition, the 50 family gives us the capabilities, both for 20 gigs in E-band, gives us capabilities like very wide channels in Europe for winning -- for being able to deploy macro 5G base stations with 4 and 8-gig capabilities with very, very small footprint. So, it's a whole evolution which I mentioned. And I think that's the same story we had around the 4G, it's a set of products that continuously rides the wave, starts with a certain sort of products in which we have ready at this point, and then additional products and services both in the radio domain, in the networking domain, in the management domains which help the customers really deploy the 5G. So, it's that whole sequence that we are walking -- deployed walking with customers and it's not just one point of time which is OK, yes, that's the next step, a very important step, a leading step, which I think very hard for others will be to catch up there, but that's only part of the story.\n", "The whole story is the whole strategy we've been building on how do we very fast ride the 5G wave in different places around the world starting in Europe, U.S., Pacific Rim, and then later on a in the emerging market types of places where we have seen that. As an interesting point on this, we've been talking that we won and we moved in the last quarter from five to nine design wins, an interesting point this quarter, I think we are close to 10. I got news from one customer, a very important one, that they selected us and -- but I want to see I'll count it as 10 when I'll see the official paper on the table.\nGeorge Iwanyc -- Oppenheimer & Co. Inc. -- Analyst\nOK. And then, I guess following up on the -- the 9, 10 design wins. Can you give us a sense of how rich the pipeline activity is both on the 4G side and the 5G side for the -- the next six months? And then, just maybe a bigger picture question about that which will be my last question. It's like the puts and takes on your annual guidance like what -- what would be something that accelerates it toward the higher end and what would pull it down toward the lower end of the range?\nIra Palti -- President and Chief Executive Officer\nSo, let's start, because I think the questions were focused on the profitability, but let's start with Q4 and the pipeline. Q4 was at the high end of our revenue run rate. '19 -- even with COVID we had higher bookings than we had in 2019. So, in 2020, higher bookings with COVID, around 4G, a little bit than in '19.\nSo, we are running. And I think that we're running in two areas. One, we continue to see significant 4G deployments in a lot of places where we do not see 5G yet for all sorts of reasons like handset pricing, technology readiness, and others, and people are deploying and delivering still a lot of capacity around 4G. See India, see Africa, see LatAm -- LatAm alone time slowed down because of capex from COVID in different places.\n", "The 5G that we see right now and as the pipeline on the table, not large, and that's why we say the second half. Reason is that when we look at the 5G design wins, they are all initial deployments where we start to see the deployments. The initial deployments are mainly on fiber. I won't say even the second wave, but it's when you start going a little bit outside the cen" ]

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[ "ks about it at all right now, just wait for a couple -- three years and see. But I believe our OEMs will be leading the pack in that, but there are other independent people out there, other technologies that is going to be interesting to watch.\nAnd we'll have our eyes out there, but I do believe in our OEMs and their capabilities to meet the changing technologies that are going to be demanded by the governments, but I do believe we might be pushing a little too far. I think that some of the demands when we talk about electric and hydrogen and fuel cell and all the other good stuff, the governments better be careful pressing it too hard because we got to catch up to what we want. I know we've got to clean things up, but those types of things will be where opportunities might come that I can't see right now, but I am very comfortable with the OEMs I have, participating in that transition. This is a transitionary decade like never seen. Transition creates a little bit confusion, which creates opportunity, trust me, we're poised.\nJoel Tiss -- BMO Capital Markets -- Analyst\nAnd just last, and maybe you're kind of already answered it that it's too far away. But any -- do you feel any need to get into like EV charging business or anything like that, like things that you're thinking about kind of a couple of years out or it's just very too early?\nW.M. Rusty Rush -- Chairman of the Board, Chief Executive Office and President\n", "No, I know it's not very too early. We're looking at a lot of stuff. By this time next year, every store in California will be solar and have all the charging stuff, OK? Obviously, we've got to meet the needs of the -- California is the leader in it, right? So we'll be there a year from now. That will be -- we're learning, right. We're learning with customers. We have trucks we sold. We have electric trucks we sold in different marketplaces. I'm not going to get into the specifics. And we look forward to doing more around that space, but again, I believe, I'm not here -- you all don't want to listen to me talk. You've probably heard enough, but I believe it's going to market segment driven as to what technologies went up. Obviously in Class 6, 7, we get to the end of this decade, but I'm sure we will be 50% or more.\nElectric, it's not going to be that way on heavy. We're going see that on the TL side. You'll get it in certain applications and certain market segments, but that's not going to, I believe, work for just pure TL over the road, at least not now. It could be in 20 years or so, but I don't think we're there with that, but you've got folks that -- I know hydrogen is something we will go \"Oh yeah\" There's a lot of things going on, and that's what going to create some confusion as things transition over the next decade, driven by -- we all have to deal with ESG and it's real, the environmental piece, but I think as I said, technologies will be driven just by market segments, we'll adapt to whatever makes sense.\nDiesel was not -- diesel will be phased out over time, it needs to be, but it's not going away right now, OK? We're going to be multi-pronged and working with whatever technologies out there, but always trying to be on the leading, not bleeding edge.\nJoel Tiss -- BMO Capital Markets -- Analyst\nOkay. That's awesome. Thank you so much.\nW.M. Rusty Rush -- Chairman of the Board, Chief Executive Office and President\nThank you, Joel. See you soon.\nOperator\n", "And thank you. And I'm showing no further questions. I would now like to turn the call back to Mr. Rusty Rush, Chairman, CEO and President, for closing remarks.\nW.M. Rusty Rush -- Chairman of the Board, Chief Executive Office and President\nThank you. Well, I appreciate everybody's time. Obviously, it will be a long time period till we talk in February. So I want to wish everyone happy holidays to you. Enjoy your families, and enjoy the time that you get to spend with them. And we will talk to you in February. Thank you very much.\nOperator\n[Operator Closing Remarks]\nDuration: 43 minutes\nCall participants:\nW.M. Rusty Rush -- Chairman of the Board, Chie" ]

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[ "omentum pick up on a global basis. North America, we've recently -- obviously, the C-band auction is complete, and we're beginning to see orders today that we expect will accelerate during 2022 and beyond. Even in Europe where there has been relethargy in upgrading their communication systems in general over the last several years, we're beginning to see signs of life in the deployment of 5G. India is also -- India has a significant government-funded program to make 5G a reality there. We're beginning to participate in trials. And last but not least is O-RAN, we already have revenue as a company with Rakuten, the online shopping company in Japan. And we're very well positioned given our ecosystem position there to unlock potential in what is a brand new stream of revenue, particularly I think as it gets deployed into private networks for machines.\nRoss Seymore -- Deutsche Bank -- Analyst\nPerfect. Prashanth, one quick clarification.\nMichael Lucarelli -- Senior Director of Investor Relations\nThank you, Ross. Go for it.\nRoss Seymore -- Deutsche Bank -- Analyst\nJust one quick clarification from what Prashanth said. Double-digits in the wired, was that a year-over-year or sequential comment? Thank you.\nPrashanth Mahendra-Rajah -- Senior Vice President, Finance and Chief Financial Officer\nThat would be year-over-year.\nRoss Seymore -- Deutsche Bank -- Analyst\nThank you.\nMichael Lucarelli -- Senior Director of Investor Relations\nThanks, Ross. Next question, please.\nOperator\nThank you. Our next question comes from Stacy Rasgon from Bernstein Research. Please go ahead. Your line is open.\nStacy Rasgon -- Bernstein Research -- Analyst\n", "Hi guys, thanks for taking my question. I actually wanted to follow up on the comm question. So, if I go back last quarter, you'd kind of talked the comm trajectory down a bit and it was at China statement. So I just want to clarify, is that -- it doesn't sound like that's changed, it does sound like the uptick you're seeing right now is outside of China, U.S., Europe, India. I guess, is that correct? I guess, why didn't you see that uptick 90 days ago -- expectations for that uptick 90 days ago versus today? And then what are your broad thoughts on 5G rollout in China going forward from here? How does that -- how does the rest of that play out given all the dynamics that are happening there?\nVincent Roche -- President and Chief Executive Officer\nYeah. So, I think first and foremost, China's opportunistic for ADI at this point. We will sell, I think, a lots of components, and therefore, it is more opportunistic. Prashanth, you can talk about the specifics.\nPrashanth Mahendra-Rajah -- Senior Vice President, Finance and Chief Financial Officer\nYeah. I think, Stacy, we have always said that we expected 5G deployments in North America to come next and be followed by Europe. When we gave you the commentary for the -- leading into the second quarter, we were focused on the pause in China. But we have seen now the auctions are complete, and particularly, Verizon being much more public about what they are -- what they intend to do in the 5G space, as Vince mentioned, orders are starting to come in for that. So, the trajectory for communications or for wireless specifically, it's going to be up in the second half.\nMichael Lucarelli -- Senior Director of Investor Relations\nThanks, Stacy.\nStacy Rasgon -- Bernstein Research -- Analyst\nThank you.\nMichael Lucarelli -- Senior Director of Investor Relations\nCan we go to our last question, please?\nOperator\nThank you. And our last question comes from William Stein from Truist Securities. Please go ahead. Your line is opened.\nWilliam Stein -- Truist Securities -- Analyst\n", "Great. Thanks so much for squeezing me in. Guys, I'd like to ask about the cost function. We have two potential looming problems. I think one is inflation broadly, not just materials, potentially labor as well. And then on the OpEx side, the return to work face-to-face sort of operations suggest maybe we start spending on travel and things like that. And I wonder if you can comment as to how we might sen" ]

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[ "ty.\n5G will come in tranches. The first tranche is already happening as 5G iPhones and 5G Samsung phones hit the market. We will see more of those in our base, and given some of the capabilities of 5G architecture, we have a better ability to deliver a gig of data at a better unit cost. And when Canada sits at 3 gigs a month on average and the US is closer to 10 gigs, and Korea is closer to 30 gigs a month, we're on that path and the ability to do so in a way that's far more cost effective is important to the economics of this industry. So that's sort of the first prize. The first prize is really kind of economics of bandwidth. The second prize around 5G, I think will be a series of applications that come to light along the way. One of them will certainly be fixed wireless access. I mean, you've seen the beginnings of what I would call 4G fixed wireless access in the industry. 5G will make those economics and that capability and population density, enable them even better around that front. How far away is that, that's in the next, call it, one to two years away.\nAnd then, the one that gets all the media attention is around one of the IoT low latency type applications. I would tell you that they are being worked on right now. And there is evidence of some of those already in the market, like the automation we've done in the City of Kelowna, for example, that's been publicized, or some of the work that we're doing with mining companies around using 5G capabilities to create more automated capabilities on the mine site, etc. These are B2B applications, and they will happen as each of the B2B verticals matures. And some verticals will mature more quickly than others.\n", "So I mean, if you're looking for a full P&L on 5G, I think -- a real material P&L is in that three year to five year time zone away, but we got to invest now, because these things take time and effort. 70% of the work in network investment is civil engineering work, 70% percent is people digging trenches -- trenches, acquiring sites, building towers, bringing fiber, and you can't turn those things on at the time, you've got to do them years ahead of time, and that's what you're seeing coming from us as an organization.\nAnd along the way, what you're hearing us say as well[Phonetic] is we've got a great network. We've got the best network, and we continue to get accolades for an all-around. It was on this call, a few years ago that people were asking how the Rogers network doing? A lot of questions around capability and performance. I would tell you that we have best-in-class networks, and we lead the industry, and it's more of a reinforcement, but that's a crown that we're never letting go off. And 5G is also a sense of pride for this organization and being first in driving the largest opportunity. And I think a sense of pride innovation in the hearts and minds of engineers is important to the culture of a tech -- of a telecom company. So I think that's -- those are the honest to goodness mindset reasons around it.\nWe're blessed in Canada with very good 4G networks, LTE networks, and when you look at the countries that have a lackluster 4G networks, 5G is taking a lot more prominence. So the contrast between 4G and 5G will come over time as I've said. But one thing we have to do to get ready for 5G is we have to launch unlimited. We have to, like we -- we couldn't have a overage based regime around the customers that want to use the most data that was in a paradigm that came out of 3G and 4G and expect to ever take advantage of 5G, and look at some of the early gaming apps. They can burn up 10 gigabytes in a few minutes, right?\n", "So my point is, this is all the orchestration toward a 5G future. And I would say that later on this year, we'll probably, once again, have a bit of a 5G [Indecipherable] going for Rogers discussion. Once we come out of the quiet period around the spectrum auction, I think there'll be a great thing to do and all set it up for the investment community.\nJeff Fan -- Scotia Capital Markets -- Analyst\nThanks, Joe.\nPaul Carpino -- Vice Preside" ]

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[ "hat you've heard in our prepared remarks and what Kishore shared already. I do feel confident that you're going to continue to see growth there. I mean, as I look into next year, we're continuing to see really nice growth in that business from a year-over-year perspective. And so supply chain constraints are going to push some of that to the back half of the year and into '22. But I mean, we're seeing very solid demand in '22 already.\nBill Peterson -- JP Morgan -- Analyst\nThat's really good color. Maybe more specifically coming to the infrastructure and in particular access. We're hearing more about O-RAN coming. You kind of mentioned the Facebook opportunity, on one hand it feels like it's still few years away, but I guess, when do you really expect some of these O-RAN developments to start and how is MaxLinear positioned, you talked about the 8x8, but obviously, we've seen some announcements from some of your peers that they're working closely with some of the compute companies or other companies that have already sort of started some initial O-RAN deployments?\nKishore Seendripu -- Chairman, President and Chief Executive Officer\nBill, obviously, we are working with all of those. If you're on the Facebook Evenstar program they're all natural allies and partners, and cool developers on the full solution. And so as being selected at the front end transceiver DFE, O-RAN single chip or macro base station applications, we are a big part of that game plan. Regarding things pushing out to years on shipment, my gosh, I mean we have been investing for three years now in wireless infrastructure and it seems like this is the nature of the beast.\n", "O I think that if you are going to invest infrastructure and this is good in the optical side as well, is that you are in for the long haul. We are committed. The TAM is wonderful. It's very high quality product that really very complementary to our great engineering skills. And so we are in this for real and for the long-term. So while we live in this quarterly world of earnings this thing, my focus is the long-term and I think we should feel really, really good because we combine the analog RF mixed signal capabilities with really high end at the tip of the spear, 5-nanometer technology capabilities. I dare say among the players that are present today in this ecosystem, maybe there have been future ones. You can't pick anybody who can match it right now, right? It's a matter of getting into the customer and getting the sales to ramp and that's going to take at their pace, and that's OK. I've been patient now for 15 years in my life, I got 15 more to go.\nBill Peterson -- JP Morgan -- Analyst\nIt's good to hear that you're comparative in the space, and we look forward to seeing the progress. Thank you.\nKishore Seendripu -- Chairman, President and Chief Executive Officer\nThanks, Bill.\nOperator\nThank you. Our next question comes from Sam Peterman with Craig-Hallum Capital Group. Please proceed with your question.\nSam Peterman -- Craig-Hallum Capital Group -- Analyst\nHi, guys. Sam on for Richard here. Thanks for taking my questions. I want to ask about MIMO. I'm curious what kind of share you guys think you can get with your SoCs from MIMO, particularly the 8x8 that you're coming to market toward the leading edge with you've named Texas Instruments, maybe [Indecipherable] your biggest competitors. Curious how you expect share to shake out and does Nokia ramping the recharge SoCs in 2021 effect at all? Thanks.\nKishore Seendripu -- Chairman, President and Chief Executive Officer\n", "You ask a very, very hard question, because nobody is shipping 8x8 right now, have some design wins been awarded, yes. And you really need to keep in mind that the Chinese OEMs are not part of the configuration right now for the most part for anybody, they are now reverting to the older platforms and shipments given the the regulatory restrictions, trade restrictions that both Huawei has been put under.\nSo now the whole dynamic has changed, and 8x8 is going to be driven by the western OEMs, and the Japanese and the Korea" ]

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[ "u view 5G capability in a handset? And what's your view as to what the killer app will be from a consumer perspective?\nTim Cook -- Chief Executive Officer\nWe don't comment on future products. And so, I'll try to sidestep a bit. With respect to 5G, I think it's -- we're in the early innings of its deployment on a global basis. We obviously couldn't be prouder of our lineup and is -- and are very excited about our pipeline as well and wouldn't trade our position for anybody.\nTejas Gala -- Senior Analyst, Corporate Finance and Investor Relations\nThanks, Katy. Can we have the next question please?\nOperator\nWe'll hear from Kyle McNealy with Jefferies.\nKyle McNealy -- Jefferies -- Analyst\nHi, thanks a lot. So we're seeing some signs of new spectrum being deployed for 5G deployments and even additional 4G capacity, and it's already having a positive impact for handset upgrades to use that new capacity. Do you get the sense that wireless carriers are getting more incentivized to upgrade handsets to get leverage out of these new network investments? How much might this be helping and do you think it will continue to accelerate?\nTim Cook -- Chief Executive Officer\nI think that we've had some great partners, not only in the US, but also around the world that was really helpful this quarter as partners. And so, I think probably a part of that is the level of investments they have and then a part of it is probably making sure that those customers stick with them in an environment where there's a lot of trading back and forth. So I'm optimistic that it will continue.\nKyle McNealy -- Jefferies -- Analyst\nOkay, great. And then the comment that you made about capacity in your Wearables division with AirPods Pro and Apple Watch 3, what should we think about the timeline of when there is capacity constraints might be alleviated and will they come from capacity additions or the natural work out of kind of unit shipments and something on the demand side?\nTim Cook -- Chief Executive Officer\nI'm hopeful that the Series 3 will come into balance during this quarter on AirPods Pro. I don't have an estimate for that for you. I just can't predict when at this point. We seem to be fairly substantially off there, and we're working very hard to put in additional capacity.\nTejas Gala -- Senior Analyst, Corporate Finance and Investor Relations\n", "Thanks, Kyle. Can we have the next question please?\nOperator\nYes, Wamsi Mohan, Bank of America.\nWamsi Mohan -- Bank of America -- Analyst\nYes. Thank you. Tim, Apple has a very valuable installed base of users. Can you see a future where Apple can become larger in the advertising market as you build out TV+ given you could have the unique position and ability to drive targeted ads to users without compromising on privacy?\nTim Cook -- Chief Executive Officer\nI think it's -- I think it is possible to have advertising in a straightforward manner that doesn't encroach on people's privacy. I wouldn't want to conjecture about us in that business. I think for the TV+ business, we feel strongly that what that customer wants is an ad free product. And so, that's not our aversion to ads. It's what we believe that the customer wants.\nWamsi Mohan -- Bank of America -- Analyst\nOkay, thank you. And Luca, can you just clarify if the Services revenue this quarter had any impact of deferrals associated with TV+ at all and how can you help us maybe size the impact of the amortization of the content cost associated with TV+ as we think about the next couple of years? Thank you.\nLuca Maestri -- Senior Vice President & Chief Financial Officer\nYeah. So yes, of course, we launched the service. And so, there was a very small contribution to revenue from the deferral, and there was also contribution to revenue from the people, the subscribers that are actually paying for the service. When you think about what goes into the Apple TV+ revenue at this point, there are two components, the paid subscribers. These are customers that pay for the service. And we recognize revenue over the subscription period. And then, we've got the, what we call," ]

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[ "ear now that we've been implementing this more disciplined approach.\nMichael Feniger -- Bank of America -- Analyst\nGot it. And I recognize that there's some -- the comps in China in the second half and that seasonality conversation is kind of difficult. If we just fast forward to 2022, if we're looking at a GDP of 5%, like global GDP, like how do you -- does IPG growth profile look in that backdrop? Is there going to be a potentially different mix of geography, new products, end markets as you're starting to see some of the secular discussions around energy efficiency and electrification start to evolve and pick up more steam?\nTimothy P.V. Mammen -- Senior Vice President and Chief Financial Officer\nI think, I mean if you got GDP growth rates that's sustained on a global basis of 5%, you'll see the overall laser market grow at a very significant premium to that. We'd expect to continue to execute very well, for example, in the laser welding applications, which we think would be a very strong growth area, potentially see some continued growth, obviously, in EV sales, like overall EV capacity over the next three or plus -- 3-plus years is estimated to triple. I think it's about 500 megawatts of capacity installed now. That's expected to get to $1.4 trillion -- 1.4 terawatts.\nSo that will be a core driver. And then you've got all of our new applications, right? So you've got the medical applications. You've got some of the solar cell applications. So if GDP holds up and PMIs remain strong, that will be a complement to our business and the new product growth will add an additional layer of growth on top of that. I'd certainly be very pleased to see global GDP transition into a 5% growth rate next year.\nOperator\n[Operator Instructions] Our next question comes from Paretosh Misra with Berenberg. Please proceed with your question.\nParetosh Misra -- Berenberg -- Analyst\nThank you and good morning. And congrats to Valentin and Eugene for the phases in their career. First, a question on the chip shortage issue in the automotive business. Were you impacted by that much in Q1? And is your automotive business, what's the geographic exposure there? Is China the biggest piece there? Or the rest of the world is bigger?\n", "Eugene Scherbakov Ph.D. -- Chief Operating Officer, Managing Director of IPG Laser GmbH, Senior Vice President, Europe and Dire\nFirst of all, we don't have any problem with -- now with such kind of chips because they're leaving deals and don't use in our products such kind of chip. The second, no, our big activity not in China, automotive, it's rest of the world, first of all, Germany, of course, and United States also.\nParetosh Misra -- Berenberg -- Analyst\nGot it. And then just want to come back on the -- some of the -- your comments on the welding market. For the electric vehicle battery welding, what are the most important products? Is it the CW-type products or maybe the QCW is the most important product that you're selling for that end market?\nEugene Scherbakov Ph.D. -- Chief Operating Officer, Managing Director of IPG Laser GmbH, Senior Vice President, Europe and Dire\nOf course, we have to ask our customers. But our opinion, it's important all CW and also pulsed -- because of the different kind of applications, not the same processes, which we are making this CW and pulsed lasers. For example, CW is usually used for welding applications, welding cars and welding some parts of the battery. Pulsed laser, as usual, they're used for cleaning and for cut foil -- cutting foil or is used for producing this battery, different applications and, of course, important, also welding and cutting and cleaning.\nValentin P. Gapontsev -- Chief Executive Officer and Chairman of the Board\nPulsed laser for welding also, especially is battery contacts, it's very important, the most critical, sensitive. And with the -- we have two machines, the two different kinds of machine and now going to -- more and more customer looking at buying this machine from us.\nAnd regarding this Genesis, I have to add that we developed robotics, this year int" ]

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[ "It's midnight on the streets of Atlanta, and bar owner Rufus Terrill patrols his neighborhood with a rolling crime fighter of his own creation. Meet \"Bum-bot,\" as Terrill describes it; others in his neighborhood call it simply, \"Robocop.\" This former BBQ smoker is armed with a water gun to chase off bums and drug dealers in downtown Atlanta. It's a barbecue smoker mounted on a three-wheeled scooter, and armed with an infrared camera, spotlight, loudspeaker and aluminum water cannon that shoots a stream of icy water about 20 feet. Operated by remote control, the robot spotlights trespassers on property down the street from his bar, O'Terrill's. Using a walkie-talkie, Terrill belts out through the robot's loudspeaker, \"That's private property. You guys need to get out of here.\" Terrill is chasing out unsavory-looking characters from a street corner that resembles a drug dealer's dream at night. More than 20 suspicious people were seen huddling in the dark in the front driveway and side parking lot on this night. Some were seen openly making drug deals. Watch \"Bum-bot\" in action » But during the day, it's where young children frolic on a nearby playground at a the Beacon of Light Daycare Center in downtown Atlanta. It has become a nightmare for day care operator Lydia Meredith. \"This whole square is enveloped with homeless people and drug dealers, defecating, urinating, prostituting -- the whole nine yards. And the overflow of that behavior, we get to cleanup every morning,\" she says. Meredith says people often toss used syringes and condoms onto the playground. Terrill, an engineer by trade, is also a board member at the day care center. Tired of cleaning up after the shady characters, he decided to take action. That's when he built his downtown Darth Vader of sorts. \"He's a neighborhood vigilante,\" says Meredith, \"and when he came up with this -- you know, I call it Robocop -- I said, 'Praise God.' \" The daycare center is a block from a homeless shelter. Meredith has a security guard at the center who leaves in the early evening. \"They know when the guard leaves,\" she says. \"They know when the cleaning crew leaves and then here comes the drug dealers to prey on the homeless people.\" Anita Beatty, the director of the shelter, is suspicious of the barbecue-smoker robot. ", "\"I just think the whole 'Robocop' spraying people is a little freaky. We really need some police protection in this neighborhood. I think it's confusing the issue. I think the issue is homeless people. They are being confused with the folks who prey on them and sell them drugs,\" she says. Atlanta police patrol the area, but say it's difficult to stay on top of the large number of people who roam the streets in the area late at night. Police Major Lane Hagin says the robot is definitely a different crime-fighting idea. \"There's no problem with the robot going up and down the street or being visible or any of the other things it does -- with the exception of spraying water on people.\" Hagin adds, \"Then, it becomes an assault no matter where it happens.\" So far no one has filed charges against Terrill or the robot. But one homeless man who declined to give his name followed Terrill and his robot down the street and laughingly told him, \"I know about you. I can sue you for assault.\" Terrill says he's not hurting anyone and often sprays the water to the side of loiterers as a ploy to get them to move on. He's also not about to back down. \"If you're throwing condoms out on the side of the playground, if you're throwing needles, you're throwing crack pipes out there, I'm not going to let those kids be out there like that. I'm going to stop" ]

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[ "ment by hand. And we're building technology tools that will help us do that and make better trade off decisions.\nMark Connelly -- Stephens, Inc. -- Analyst\nThat's super. I appreciate it. I mean obviously IP has been a leader in that space. It's nice to see you making even more progress.\nOperator\nAnd we do have time for one last question. And our last question will come from the line of Neel Kumar with Morgan Stanley.\nNeel Kumar -- Morgan Stanley -- Analyst\nHi, good morning. In terms of the OCC prices, we've seen them to start run up a bit recently. Can you just give us a sense of your expectations for how OCC prices evolved through 2021 as well as longer term? And then in terms of China's ban of OCC imports, it seems that since it's already facing a shortage of fiber, do you have any thoughts on whether China's ban will stick and how they'll address their fiber needs going forward?\nMark S. Sutton -- Chairman and Chief Executive Officer\nWe couldn't hear exactly. I think you asked about OCC prices but you broke up a little bit at the beginning of your question. Is that what you were asking, OCC prices?\nNeel Kumar -- Morgan Stanley -- Analyst\nYes. I was just asking about what your price expectations are for OCC in 2021 and the longer-term.\nTim S. Nicholls -- Senior Vice President and Chief Financial Officer\nNow 2021, the crystal ball is not that clear going out toward the second half of the year. In the quarter, we expect the trend that we saw in the fourth quarter to continue in the first. And so on average, I think we're expecting $15 to $20, maybe a little bit more than that on OCC. But it really will depend. It's such a fast reacting market to circumstances and conditions. So we'll have to see what happens as we're going from first into second quarter.\nNeel Kumar -- Morgan Stanley -- Analyst\nGreat. And then just in terms of China's ban of key imports. So you think that's going to stick or how they're going to address their fiber needs going forward?\nTim S. Nicholls -- Senior Vice President and Chief Financial Officer\n", "Well, we -- again we always have said, we take them at their word, and I think you've already seen the market beginning to adjust, adjusting last year and maybe even late 2019 in anticipation of this. So I think you see some of that rotation from one fiber tie to another in China and you see a rebalancing across other export markets for OCC. So yes, I think that probably stays in place.\nNeel Kumar -- Morgan Stanley -- Analyst\nGreat. Thank you.\nTim S. Nicholls -- Senior Vice President and Chief Financial Officer\nThank you.\nMark S. Sutton -- Chairman and Chief Executive Officer\nSo thanks everyone for joining us today, and for the call -- for the questions, excuse me. Just a closing comment. We are excited about what's in front of us with International Paper. We have strong demand in packaging in cellulose fibers business. Our Paper business is recovering. We're still not gating the pandemic but as I said in my comments, I have total confidence in our employees to be able to continue to do that. We have improving market conditions. And so we're excited about the way 2021 is going to unfold and lead us into a very strong position as we enter 2022, and what I'm very hopeful is a pandemic-free economic playing field. So thank you again for your interest in International Paper.\nOperator\n[Operator Closing Remarks]\nDuration: 62 minutes\nCall participants:\nGuillermo Gutierrez -- Vice President, Investor Relations\nMark S. Sutton -- Chairman and Chief Executive Officer\nTim S. Nicholls -- Senior Vice President and Chief Financial Officer\nPhilip Ng -- Jefferies Group -- Analyst\nGabe Hajde -- Wells Fargo Securities -- Analyst\nMark Wilde -- Bank of Montreal -- Analyst\nGeorge Staphos -- Bank of America -- Analyst\nAnthony Pettinari -- Citigroup Inc. -- Analyst\nAdam Josephson -- KeyBanc Capital Markets -- Analyst\nMark Weintraub -- Seaport Global Holdings -- Analyst\nMark Connelly -- Stephens, Inc. -- Analyst\nNeel Kumar -- Morgan Stanley -- Analyst\nMore IP analysis\nAll earnings call transcripts\n\n\n\n\n" ]

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[ "garded products across new geographic regions. This change in strategy has shown early indications of success as we are growing and winning new business with other data center customers. For example, in the quarter, we secured our first order with a major cloud computing customer in Europe for shipment in fiscal '21. This is a key component of our growth strategy moving forward.\nLooking ahead, we see our markets starting to pull back a little bit, but they will remain generally positive throughout the calendar year. Within that we expect to see stronger growth in key markets as macro trend should remain strong. For data centers, strong growth continues in the colocation and cloud data center space. Given our strong presence in the UK markets, the increased certainty around Brexit should provide some stability into the general HVAC market. We anticipate UK banks to release capital funding for construction, open the door to growth again. As I mentioned earlier, our newly engaged global data center team has solid plans to grow and diversify this business with new customers in fiscal '21.\nWith that, I'd like to turn it over to Mick for an overview of our consolidated results and an update to our outlook for fiscal 2020.\nMichael B. Lucareli -- Vice President, Finance, and Chief Financial Officer\nGood morning, everyone. Please turn to Slide 7. As we anticipated and detailed by Tom, market softness continued well through the quarter. VTS and CIS segments were the primary drivers of our revenue decline, which resulted in difficult year-over-year comparisons. As reported, third quarter sales declined $68 million or 12%, of the $68 million decline over $50 million was the result of decline in truck and off-highway sales along with the drop to our largest data center customer.\nGross profit of $74 million declined 20%, resulting in a gross margin of 15.5%. The 27% downside conversion was in line with our expectations and based on standard fixed and variable cost structures. Besides the lower sales volume, CIS was negatively impacted by sales mix, resulting from the decline in data center sales. Also impacting gross profit was approximately $2 million of costs relating to the product and equipment transfers in support of our automotive exit strategy. Materials and metals had no impact on the quarter and strength in building HVAC continued, with a gross margin improvement of 120 basis points.\n", "SG&A for the quarter was $64 million. There were two main drivers behind the SG&A numbers. First, we had lower compensation expenses this quarter and began seeing the benefits of our cost reduction plan. Second, we have the temporary costs related to our automotive exit strategy. Preparing to exit the automotive business is a complicated and expensive process, including all of the separation and program management work. To facilitate this process, we created a program management office to support all of the work streams necessary to support the business and transfer products to fully separate our plants.\nAs discussed previously, the auto business needed to be separated and stood up as a stand-alone fully functioning business. This required that we carve out a quarter of the company that have been previously embedded within multiple locations throughout our global VTS segment. Last, our actual deal related and transaction work stream, since launching a formal sales process, we incurred costs related to seller due diligence, accounting, legal and other advisory services. During the quarter, we incurred $12.6 million of costs related to all of this work, including the separation and sale process, approximately $3 million was primarily related to project management costs. Also during the quarter we incurred approximately $7 million of cost to separate the business. These costs included IT, human resources, accounting, tax, legal and audit fees. Last, there were costs tied to the sale process and related to seller due diligence, legal and other advisory costs. During the quarter these costs were approximately $2 million. I am encouraged that the vast " ]

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[ "ear now that we've been implementing this more disciplined approach.\nMichael Feniger -- Bank of America -- Analyst\nGot it. And I recognize that there's some -- the comps in China in the second half and that seasonality conversation is kind of difficult. If we just fast forward to 2022, if we're looking at a GDP of 5%, like global GDP, like how do you -- does IPG growth profile look in that backdrop? Is there going to be a potentially different mix of geography, new products, end markets as you're starting to see some of the secular discussions around energy efficiency and electrification start to evolve and pick up more steam?\nTimothy P.V. Mammen -- Senior Vice President and Chief Financial Officer\nI think, I mean if you got GDP growth rates that's sustained on a global basis of 5%, you'll see the overall laser market grow at a very significant premium to that. We'd expect to continue to execute very well, for example, in the laser welding applications, which we think would be a very strong growth area, potentially see some continued growth, obviously, in EV sales, like overall EV capacity over the next three or plus -- 3-plus years is estimated to triple. I think it's about 500 megawatts of capacity installed now. That's expected to get to $1.4 trillion -- 1.4 terawatts.\nSo that will be a core driver. And then you've got all of our new applications, right? So you've got the medical applications. You've got some of the solar cell applications. So if GDP holds up and PMIs remain strong, that will be a complement to our business and the new product growth will add an additional layer of growth on top of that. I'd certainly be very pleased to see global GDP transition into a 5% growth rate next year.\nOperator\n[Operator Instructions] Our next question comes from Paretosh Misra with Berenberg. Please proceed with your question.\nParetosh Misra -- Berenberg -- Analyst\nThank you and good morning. And congrats to Valentin and Eugene for the phases in their career. First, a question on the chip shortage issue in the automotive business. Were you impacted by that much in Q1? And is your automotive business, what's the geographic exposure there? Is China the biggest piece there? Or the rest of the world is bigger?\n", "Eugene Scherbakov Ph.D. -- Chief Operating Officer, Managing Director of IPG Laser GmbH, Senior Vice President, Europe and Dire\nFirst of all, we don't have any problem with -- now with such kind of chips because they're leaving deals and don't use in our products such kind of chip. The second, no, our big activity not in China, automotive, it's rest of the world, first of all, Germany, of course, and United States also.\nParetosh Misra -- Berenberg -- Analyst\nGot it. And then just want to come back on the -- some of the -- your comments on the welding market. For the electric vehicle battery welding, what are the most important products? Is it the CW-type products or maybe the QCW is the most important product that you're selling for that end market?\nEugene Scherbakov Ph.D. -- Chief Operating Officer, Managing Director of IPG Laser GmbH, Senior Vice President, Europe and Dire\nOf course, we have to ask our customers. But our opinion, it's important all CW and also pulsed -- because of the different kind of applications, not the same processes, which we are making this CW and pulsed lasers. For example, CW is usually used for welding applications, welding cars and welding some parts of the battery. Pulsed laser, as usual, they're used for cleaning and for cut foil -- cutting foil or is used for producing this battery, different applications and, of course, important, also welding and cutting and cleaning.\nValentin P. Gapontsev -- Chief Executive Officer and Chairman of the Board\nPulsed laser for welding also, especially is battery contacts, it's very important, the most critical, sensitive. And with the -- we have two machines, the two different kinds of machine and now going to -- more and more customer looking at buying this machine from us.\nAnd regarding this Genesis, I have to add that we developed robotics, this year int" ]

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[ "transactional velocity deals as we look internationally versus domestically?\nJay Kreps -- Co-Founder and Chief Executive Officer\nYes. Yes. So international has continued to outpace U.S. growth.\nKind of in just observing and talking with customers, I would say they're probably a little bit behind the curve on overall cloud adoption and a little bit behind on streaming, but catching up quickly. I think that in all regions, I've met with customers who are kind of going big at very senior levels, I think that's an exciting thing to say. So for us, the regional differences at this layer of the stack, they're not huge, right? There's many other products that have much bigger differences. By and large, I feel like this type of technology is kind of very international.\nBut it is true that I would say the European companies were a little slower on cloud, so just the total dollar spend in cloud is not at the same level yet as the counterparts -- similar sized company in the same industry would be at in the U.S. And then maybe a little bit, maybe a year behind the curve across the board on the world of streaming. But by and large, doing exactly the same projects in exactly the same way, so we see that as a super healthy thing as that business is kind of catching up to what we see in the U.S. You may have bits to add to that, Steffan, but those are my observations.\nShane Xie\nAll right. We'll take our next question from Brad Sills of Bank of America.\nAdam Bergere -- Bank of America Merrill Lynch -- Analyst\nThis is Adam on for Brad. So just as you guys see deals get bigger, can you just remind us how we should be thinking about seasonality again? For example, like should we expect to see a more pronounced Q4 this year than maybe last year or the year prior?\nJay Kreps -- Co-Founder and Chief Executive Officer\nYes. Do you want to speak to that, Steffan?\nSteffan Tomlinson -- Chief Financial Officer\nSure. When we think about seasonality, it's really from a bookings basis primarily. That's where we start. And given the way that business is done in the enterprise, typically near the end of the calendar year, larger deals have more momentum, and we -- in deals in Q4, and it's also aligned with sales compensation plans.\n", "But we're looking at doing very substantial deals throughout the whole year, but it just so happens the way that the enterprise business works. It tends to be -- Q4 tends to be higher from a booking standpoint. When you look at revenue, there's going to be a little bit of variability in our revenue on a quarter-to-quarter basis in terms of growth rates, and that's because we have a hybrid revenue model. Part of our model has Confluent platform, which you have part of it upfront and then the balance recognized ratably.\nWe are seeing an increased impact -- positive impact around our consumption business. And we talked about that there are some either seasonality or cyclicality type of dynamics to a consumption-based model. And so you could have Q4 to Q1 having less sequential consumption growth. But that's normal, and there are lots of different companies that are out there with a hybrid revenue model that sees that on a consumption basis.\nBut we're talking about this in the context of us continuing to raise numbers. We're leaning into a $50 billion-plus market. We're also leaning into improved visibility around how we're managing growth and profitability. And so I devoted a little bit of my comments to this in the script, but we remain committed to delivering high revenue growth and annual operating margins, operating margin improvement in FY '22.\nWe plan on accelerating that in FY '23 from an operating margin standpoint, and we plan on exiting Q4 '24 with positive non-GAAP operating margin, and we're doing this all in a high-growth format. And the last point I want to make on that is, if you think about the importance of managing growth and profitability and the timing of when we are achieving positive non-GAAP operating margin, we're a 2014 vintage company, and we have laid out basically like a 10-year dynamic from 2014 to Q4" ]

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[ "izon's fixed wireless broadband product.\nAnd if so, how does your message around 5G resonate against their $30 pricing?\nMike Sievert -- President and Chief Executive Officer\nTerrific. OK. First to Peter.\nPeter Osvaldik -- Chief Financial Officer\nYes, absolutely. And look, Jonathan, I think the important thing is, at some point, this industry will probably normalize more to pre-pandemic levels, right? No doubt about it that it will happen at some point. It might come in ebbs and flows. The most important thing is in what we provided you from a net add guidance and what we, of course, delivered in 2021 that you have to ask yourself is, who really has a clearly articulated strategy backed up with proof points in terms of how they're going to generate their growth.\nAnd that's why we're so excited about the guide that we gave you because of all the underpenetrated opportunities that we have, smaller markets and rural areas, you just heard Mike Katz talk about enterprise and government, of course, what we have in terms of high-speed internet, and we're going into all of these areas while we're building a completely differentiated network that is going to stay ahead. And that's going to fuel the opportunity to bring the best product and the best value and fuel the growth that we're seeing and the momentum and the stats that you've heard, whether it's from smaller markets and rural areas that are generating that account growth. We're just tremendously excited about it. And so, despite what the industry does in 2022, we feel very confident in the guide that we gave because of, again, the product differentiation on the network and our ability and traction and growth opportunities in these underrepresented areas.\nMike Sievert -- President and Chief Executive Officer\nYes. And on mobile broadband or fixed wireless, no, we're not really running into that. But remember, we're just operating at a different scale. So, in Q4, we delivered more net adds than Verizon has delivered in the entire time frame they've been swinging the bat on fixed wireless, three years-plus.\n", "So, we're operating at completely different scales. And you have to remember that while they're starting with mid-band 5G, they're starting with a very small amount of geographic coverage and concentrating POPs in urban areas where it's easiest to do deployment. We know. We started planning our mid-band 5G in 2018 with permitting and licensing and started rolling it out in earnest over two years ago so -- or about two years ago.\nSo, we know that that's a different opportunity. So, we're not really running into them much. As to their pricing, it's interesting. We'll have to see where that goes.\nI'll tell you this, the response we're getting to our offers is phenomenal. The idea of being able to have a product with massive capacity and mainstream usage across vast swaths of this country for $50.00, including all taxes and fees and no promotional gotchas like our WIRED into the fine print on that Verizon offer. That's really cool, and it's resonating, and we're really not out to respond to other people's initiatives. We're out to delight customers with an offer we're proud of.\nAnd the thing that I think they will see is that it's backed by this massive capacity network. And others -- it just kind of shows the time-to-market advantage. Others do have massive capacity in a few places with millimeter wave, but there are also demonstrated issues there with self-install and other complications. And so, we feel like we've got the right sweet spot, and we're just, heads down, executing our strategy and really not worrying about all the noise.\nJonathan Chaplin -- New Street Research -- Analyst\nGreat. Thanks, guys.\nOperator\nWe'll move next to Simon Flannery of Morgan Stanley.\nSimon Flannery -- Morgan Stanley -- Analyst\nGreat. Thank you very much. Neville, I wonder if you could just talk a little bit about some of the key priorities for the capex program. I think we were a little bit surprised about last month when the guide -- or in December when the guide went up year over year given " ]

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[ "medical applications. In mobile, we are leveraging our Sky5 platform across multiple flagship 5G launches including Samsung, Oppo, Vivo, Xiaomi and other Tier 1 players and expanding our technology reach across our customized Diversity Receive platforms with new 5G-centric solutions driving sharp gains in design win count. In IoT, we are supporting high-performance 5G and Wi-Fi enabled tablets specifically developed for health, safety, and telemedicine applications.\nAcross mobile operators, we are powering 5G hotspots with Verizon and AT&T supporting the expanding work-from-home trend. We're extending our market leadership in Wi-Fi 6 with home and enterprise gateways at Cisco. We're enabling home security applications at Honeywell and ramping remote patient monitoring systems with GE. We're also launching asset tracking and fleet management solutions with Juniper and BlackBerry.\nMoving to the infrastructure space, we're supporting 5G Massive MIMO and small cell base station deployments across the U.S., Europe, and Japan and in automotive, we're accelerating connectivity content with leading brands including Volkswagen, Renault, Hyundai, and Nissan. These highlights demonstrate our technology leadership underpinned by a diverse and growing set of critical product categories resolving increasingly complex architectures and preparing our customers for the performance gains demanded in 5G.\nIn these unprecedented times, our existing technologies and connectivity protocols are processing extraordinarily high data traffic. This explosion in data consumption is taxing networks with real-time video, high-speed processing, streaming content, and a long list of critical services, all dependent upon seamless, reliable, and ubiquitous connectivity.\nTo illustrate how the pressure on the network capacity is intensifying, just over the last few months, we've seen visits to Amazon website rise more than 30% year-over-year, Zoom Video conferencing passing a milestone of 300 million daily participants, Microsoft Teams platform logging a single day record of 2.7 billion minutes and now with 5G just beginning to launch, the average user today is still working with legacy technologies showing system weakness in this high data demand environment.\n", "Clearly more than ever, always on connectivity is paramount. Skyworks and our partners in the mobile and wireless ecosystems are anticipating and accelerating the development and delivery of much needed cutting-edge technologies led by 5G, Wi-Fi 6, enhanced GPS, and other networking protocols. As Skyworks and the world navigate this challenging environment, our focus will continue to ensure streamlined high-speed connectivity delivering a path for reliable, constant, and safe communication reaching all of our customers and their varied applications. With that, I will turn the call over to Kris for a discussion of Q2 and our outlook for Q3.\nKris Sennesael -- Senior Vice President and Chief Financial Officer\nThanks, Liam. Skyworks revenue for the second fiscal quarter of 2020 was $766 million, in line with the March 4 updated outlook where we reduced our revenue guidance for the COVID-19 impact by approximately $45 million. At $766 million, revenue is down 5% year-over-year. However, excluding Huawei-related revenue in both Q2 of fiscal '19 and fiscal '20, revenue is up 4% year-over-year despite the negative impact from COVID-19. Gross profit in the second quarter was $384 million resulting in a gross margin of 50.2%. Operating expenses were $135 [Phonetic] million, flat year-over-year as we continue to prudently manage opex while making the necessary investments to accelerate future growth of the business. We generated $249 million of operating income translating into an operating margin of 32.5%. Other income was $4.5 [Phonetic] million and our effective tax rate was 9.4% driving net income of $230 million or $1.34 of diluted earnings per share.\nTurning to the balance sheet and cash flow. Second fiscal quarter cash flow from operations was $280 million and capital expenditures was $60 [Phonetic] milli" ]

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[ "e bigger than expected. I don't know the long-term trajectory there. You would think at some point in the long term, China will rebound and that business should see growth.\nBut I'm sure the timing on that is uncertain. If you think about other puts and takes, I think emerging market strength. If you look at our 18% same-store sales growth in emerging markets, that's a great sign of recovery and a big important part of our business. So that's a place where you might see upside.\nOf course, on the flip side, we'll continue to navigate the really dynamic environment around inflation, pricing and how those are playing out in each of our markets around the globe. Right now, we think we're dealing with those incredibly well. Our scale gives us advantage and gives our franchisees advantage in dealing with those. But -- a very dynamic environment, but we feel really good about the overall profit engine of the business.\nJodi Dyer -- Vice President, Investor Relations\nOperator. We have time for one more question this morning.\nDavid Tarantino -- Robert W. Baird and Company -- Analyst\nThank you.\nOperator\nOur final question this morning is from Brian Mullan of Deutsche Bank. Your line is now open. Please go ahead.\nBrian Mullan -- Deutsche Bank -- Analyst\nThank you. Just kind of a big picture question, but do you see any potential one day for a cross-brand loyalty program at Yum!? Is that something that you think could potentially work in the quick service restaurant industry in the U.S.? Or conversely, are there some reasons why that wouldn't work or wouldn't be a good idea maybe from a consumer perspective or a franchisee perspective?\nChris Turner -- Chief Financial Officer\nYes. So Brian, good question. Loyalty is becoming an increasingly important part of our business, increasingly important part of our digital experience that we provide to customers. More than half of our restaurants around the globe are part of a loyalty program.\nTaco Bell in the U.S. is a great example of how we're driving excitement through loyalty. That's what we did with the Taco Lover's Pass. And that helps to drive app downloads and people signing up into the program, and we continue to see significant growth in membership in that program.\n", "Pizza Hut obviously in the U.S. has a large and very impactful loyalty program. And KFC has great loyalty programs in a number of markets around the globe. So we're going to continue to focus on that, implementing it in markets where it makes sense.\nInteresting question. Obviously, we thought about it in terms of cross-brand loyalty. Right now, we're focused on maximizing the value of our brand-focused loyalty programs. But obviously, as our data and analytics capabilities continue to evolve, all sorts of possibilities are out there in the future.\nBut for the time being, we'll remain focused on brand-specific loyalty programs.\nDavid Gibbs -- Chief Executive Officer\nSo thank you, everybody. I appreciate your time. Just to wrap up, it was another strong quarter obviously with good top line sales growth, all brands growing. The development numbers, obviously, we continue to set records, which we're very proud of.\nAnd that's widespread, right? All of our brands grew at least 5% on a net new unit basis in the quarter. Another digital sales record, which we keep saying on every call and we just keep on delivering on. And then this time, we passed that important milestone of 40% digital mix. And I just think, in total, the quarter represents our brands all around the world are healthy and can perform in any environment.\nThis is certainly one of the most challenging ones we've ever had to deal with, proving the resiliency of our business model. Thank you for your time.\nOperator\n[Operator signoff]\nDuration: 55 minutes\nCall participants:\nJodi Dyer -- Vice President, Investor Relations\nDavid Gibbs -- Chief Executive Officer\nChris Turner -- Chief Financial Officer\nDennis Geiger -- UBS -- Analyst\nJohn Glass -- Morgan Stanley -- Analyst\nJon Tower -- Citi -- Analyst\nDavid Palmer -- Evercore ISI -- Analyst\nJohn Ivankoe -- JPMorgan Chase a" ]

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[ "of compare/contrast and you expect that ecosystem around 5G is likely your most robust factor in fiscal '21 at this early juncture?\nSundaram Nagarajan -- President and Chief Executive Officer\nYeah, the 5G -- 5G activity -- the activity remains strong. Project activity remains strong. We get invited to lots of different projects where we're working on. But it is, at least for the moment, it has got a lot of promise, as we've talked about in the last couple of quarters, lots of promise, a big secular driver for this business, but not a needle mover at the moment for us.\nBut why we're excited about 5G is, not only just the handset. We really want to think about 5G in a broader terms around the base station infrastructure build-out, which is sorely behind. You really find there is a lot of advertisement and marketing around 5G. Really, the usefulness of any of that only depends on if you are near the cell tower. Remember, these are fairly weak signal, so you've got to really be almost on top of one of these things to experience this awesome technology that is coming. But eventually it will happen. So we are excited about the base station opportunity. It's slow to roll out.\nAs you know, there are a number of geopolitical competitive things going on around that that certainly strains it. We certainly like all the advanced components that are getting developed. So we really like that. Auto electronics will be a big player of 5G because they are going to get incorporated. IoT devices are going to be another big area where 5G is going to get incorporated. So lots of different nuances to 5G beyond just the handset. But the handset is probably what takes up most of the press time. So overall good activity; still continuing to participate in projects; just not a big needle mover at the moment for our Company.\nChristopher D. Glynn -- Oppenheimer & Co. -- Analyst\nYeah. We know it's not now, but it sounds like the timing visibility is kind of quixotic, I guess?\nSundaram Nagarajan -- President and Chief Executive Officer\nYeah, yeah, a good word to use.\nChristopher D. Glynn -- Oppenheimer & Co. -- Analyst\nThank you.\nSundaram Nagarajan -- President and Chief Executive Officer\nThank you, Chris.\nOperator\nNext question comes from Mike Halloran with Baird.\n", "Michael Patrick Halloran -- Robert W. Baird & Co. -- Analyst\nHey, good morning, everyone.\nSundaram Nagarajan -- President and Chief Executive Officer\nGood morning, Mike.\nMichael Patrick Halloran -- Robert W. Baird & Co. -- Analyst\nA couple of -- a couple of margin questions here. So on the ATS, if you think about the sequential margins going into the -- into the fiscal fourth quarter, same mix pressures -- that appears to be the assumption, but the same mix pressures that were there in the fiscal third quarter probably than just for the fiscal fourth quarter?\nJoseph P. Kelley -- Executive Vice President and Chief Financial Officer\nYeah. So I think similar -- in ATS, the mix pressure will be there, as assumed to be there, in the fourth quarter that was there in the third quarter based on some of the end market demand that Naga just reviewed.\nMichael Patrick Halloran -- Robert W. Baird & Co. -- Analyst\nThat makes sense. And then the inefficiencies you referenced for the industrial precision business. Maybe some context on those and how long do you think they linger?\nSundaram Nagarajan -- President and Chief Executive Officer\nYeah. So as our factories initially responded during the COVID crisis and our efforts to keep employees safe but continue to meet customer needs, we had significant factories -- while they remained open, we were precautionary quarantining several people. When you think about some of our clean rooms, we also had to put in social distancing and so our -- some of our manufacturing processes weren't as efficient from a direct labor standpoint. And so we've been working through that, getting the proper PP&E, the proper staffing and people coming back from quarantine. And so we're kind of working through those kinks. We've made progress, I would tell you, in the quarter -- from" ]

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[ " more strongly with Prime benefits in 2020, and we think that will have a lasting impact both from the purchase frequency amount they purchase, use of digital benefits, etc. So, we are going to have to build probably for multiple scenarios and any on this upsy world. It's hard to turn that capacity on quickly, so generally means you may have to overbuild to protect the customer experience. On transportation, we made large investments in our transportation network in 2020.\nWith that work's not done yet. We have a lot of continued expansion. So, we see that over definitely through 2021. I can't quantify it right now.\nOnly -- I'm only giving guidance through Q1 right now, and we are still working -- through some of the plans as we do this time of year. And then infrastructure will remain a healthy part of our investment as well. We're supporting aid of U.S. business that is growing at a rapid clip both in usage and in revenue.\nWe're expanding regions globally and have a lot of upside in that area talking with customers on their transition plants to the cloud. So, we definitely do not want to run out of capacity, and we work to not do that. So there could be a risk of forwarding spend in 2021 due to uncertainty, but we'll see them, as we move through the year.\nOperator\nOur next question comes from Doug Anmuth with JP Morgan. Please, proceed with your question. Doug, your line is open. Please, proceed with your question.\nDoug Anmuth -- J.P. Morgan -- Analyst\nSorry. I muted. I apologize. Brian, I hope you could talk more about the importance of AMC Yellow Amazon logistics during the holiday season.\nIf you could talk more about the percentage of packages, perhaps shipped from your fulfillment centers, and then where this can go in the coming years. And then also a quick comment on the COVID costs, you mentioned $2 billion in 1Q. Just curious how you think about it more on a full-year basis with some of the puts and takes that can be there. Thanks.\nBrian Olsavsky -- Chief Financial Officer\n", "Yeah. So, yeah for the full year were again $11.5 billion was our gross cost for 2020, $4 billion of that in Q4. We see a step down to closer to $2 billion in Q1 that compares with a $600 million spent last Q1 as the pandemic just started and we start reacting in March and, obviously, this cost escalated in Q2 and Q3. So, if we look at the core components of that right you know there's productivity that a lot of productivity drags from hiring, so many new employees, and also having a physical separation.\nThat gets better all the time. It was exasperated a bit in Q4 because of all the new hires that we brought on over 170,000 new people that should moderate. That's why one of the reasons that we were -- we see a step down in Q1 versus Q4 volume related and also mix of employees. After that we're going to see again, hopefully, the vaccine gets going.\nEveryone gets vaccinated and we return it to normalcy that would be very helpful on a lot of fronts for everybody. And if not, there'll be a continuation of some of these costs. I will say that while we are very transparent, I try to be on the costs that we're seeing specifically around COVID. There are some positive things happening that counteract a bit of that.\nThat's the least of which is the top line volume. In 2020, we grew 37% and an FX-Neutral basis versus growing 22% in 2019. And the fact that we've been running pretty full out since arguably in April but definitely into May has created operating efficiencies of its own as a counterbalance to the physical separation and the training of new employees. So there's a lot of moving parts in here.\nWe're able to save about a billion dollars in transportation costs this year, excuse me in 2020 as virtually all travel was shut down and our sales teams found new ways to reach customers. We'll see how that develops over time. Marketing although it got back to probably more healthy levels in Q3 and Q4, definitely was lower in Q2 as we work through some capacity issues and it wasn't fruitful to invest in marketing when you're having trouble hitting exis" ]

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[ "It's a neighborhood of shotgun houses painted a rainbow of colors, a community of artists, workaday folks and students where everyone knows everyone's name. Destruction in Atlanta's historic Cabbagetown district, which many artists call home. Saturday morning, people were out walking their dogs, sipping coffee and taking a look at who was hit the worst in Atlanta's Cabbagetown district. It appeared Friday night's 130 mph tornado had delivered its wrath randomly -- some houses were perfectly intact while others were flooded and smashed. \"It's a sad thing,\" said 56-year-old Bertha Wise, standing next to a splintered tree that had buried her car and blocked a side-door to her yellow and cobalt-blue house. A sign advertising her hand-crafted art, which she sells from her home, hung slightly askew. \"I was cooking dinner and the lights started to flicker,\" she said. \"There was no warning. My door flung open and papers went flying. By that time, there was nowhere to go.\" Without a basement, she hunkered down and hoped for the best. But Wise fared well compared with her neighbors in this historic neighborhood, which has gone from crime-ridden to cool in recent years. A few blocks down, a woman named Rebecca -- too distraught to speak with a reporter -- carried what belongings she had left out of her rental home, which had been split in half by a giant oak tree. Watch residents describe the storm's quick arrival » She wasn't at home at the time, her landlord Mark Rogers told CNN, which was a good thing for her safety. But in the early morning hours, looters got there before she had and took almost everything. Looting was a problem throughout the neighborhood, many said. See photos of the damage » A few doors down from her, Pastor Richard Davis stared up at the tire-size hole in the roof of his Eastside Christian Community Pentecostal Church. He has been preaching in its single room for 10 years. \"Yes...well, that is something isn't it?\" he said, then gestured to the church's bathroom -- a brick yellow outhouse. \"That's still here though. We'll be OK.\" He plans to give a sermon on Palm Sunday and ask his parishioners to pray hard that lack of insurance won't force him to close his doors. ", "Steven and Laura Powell, thinking they were in store for a short lightning storm, were startled by the storm's quick escalation. They were frightened when they spotted the storm beginning to circulate in the distance from their tiny home, and rushed to scoop up their sleeping 5-week-old Audrey. Bundled in a soft pink onesie, Audrey was still sleeping Saturday morning as her parents walked the neighborhood, amazed that their home had not been damaged -- and that their daughter had snoozed through the entire ordeal. \"I just put myself on top of [Laura] and the baby and we got under the strongest beam in the house,\" said Steven Powell. \"I thought that if a tree came crashing through, I'd take the brunt of it.\" Cabbagetown's houses were built for the workers at the local Fulton Cotton Mill. The mill closed and the neighborhood slid into decay. The renaissance of Cabbagetown began when the mill buildings were converted to the trendy Fulton Cotton Mill Lofts and the artists and urban pioneers moved in. In addition to hitting the houses, Friday night's tornado seriously damaged the top floor of the lofts. Remarkably, nobody was hurt. Cabbagetown residents remember when the under-construction lofts survived a five-alarm fire in 1999 -- and say they plan to rebuild and survive this disaster as well. E-mail to a friend" ]

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[ "f similar ways. AEC is already investing really significantly ahead of the market in terms of their digitization efforts. You kind of saw early evidence of that with the EBA business we did.\nThe record number EBAs we did in Q4 relative to previous years. In manufacturing, you kind of see the same accelerated interest in digitalization and new cloud-based workflows, especially surrounding what we're seeing in fusion. The same goes in media entertainment. The media entertainment business, which was classically a laggard on some of these highly digital, highly cloud integrated workflows is moving to the cloud in a big way.\nNow geographically kind of in a broad-brush, I kind of highlighted in the opening remarks that, we saw a broad recovery in Europe and Asia to pre-COVID levels of monthly active usage. And we saw a little bit of a lag in the U.S. and the UK. I think we're going to see that kind of geographic fraternity new business in that cascade.\nIt's going to be strong in APAC. It's going to get strong in Europe, and then it's going to start to come back in the U.S. and the UK. Q1 will be the trough of this new business growth, and we're going to accelerate right out of that into the rest of the year.\nSaket Kalia -- Barclays -- Analyst\nGot it. That's really helpful. Maybe for a follow-up, understanding that Innovyze hasn't closed, it isn't included in guidance. Can you just give us some broad brushes on maybe how big that revenue scale there is, and maybe just touch on whether there are any significant differences in the business model versus Autodesk?\nAndrew Anagnost -- Chief Executive Officer\nYes. Differences in opportunities, Saket. So first off, let's just kind of just level set on why we did Innovyze. I think we've been super clear that infrastructure is one of these really big growth opportunities for us long-term.\nInfrastructure projects take a long time to design and plan, and they last even longer after that. So an investment in infrastructure is an investment in the long-term health of Autodesk. And I think we just have to be super clear about that. Water was one of those areas where it would have taken us all a lot of time to catch up organically, whereas road and rail is an area we've been highlighting to you that we've been investing in organically with our portfolio and really making great strides there.\n", "When you look at the business at a high level, in terms of the differences and where the revenue is going to come from. So look, at a high level, Innovyze is going to be accretive to our revenue growth, roughly to a percentage point, as we head into this year that includes deferred revenue write-offs and the fact that we have a partial year in here, it's probably going to be dilutive this year about a percentage point off of operating margin. But here's the opportunity that I want to make sure you highlight. You actually poked out a little bit between the differences in our business model.\nNot only are we going to plug Innovyze into our sales engine, in terms of named accounts, channel sales and international expansion. We're also going to apply our expertise on business model transformation to the Innovyze product portfolio. And I think that's going to be an important transitional element of how we absorb Innovyze into the company. We're good at this.\nWe know how to do this, and we know how to navigate this. So what you're going to see in FY 2023 is you'll probably see a little bit of a depression of Innovyze's revenue growth in isolation, because we're going to be applying the business model transformation. And as you know, with the business model transformation, there's downward pressure in revenue as a result, but acceleration of revenue as you head out onto the other side of the business model transformation. So if we look at FY 2023, it's probably going to be neutral to the overall revenue growth of the company.\nIt's not going to touch the free cash flow number $2.4 billion is going to come out Innovyze or no Innovyze. And they'll probably be a little bit more of a headwind operating margin, maybe be" ]

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[ "illimeter wave offerings from our customers for the past few years.\nSo we expect it to continue to grow. Again, we're on the front end of something that's going to play out over the next decade because of the progression in millimeter wave spectrum from 20 to 40 to 70 to 90 gigahertz. And then with 6G coming in with terahertz, so there is a big long-term road map that's playing out. Specific to your question on 5G, maybe I can offer a data point.\nIf you think of the certification being a critical parameter for 5G devices, about 150 devices are being certified right now. About 30% of them have millimeter wave in it. So, you know, that paints the picture, hopefully. And the total number of 5G devices right now that are being released is about 700.\nSo it sort of gives you maybe a framing on where we are. It's still very early days.\nMehdi Hosseini -- Susquehanna International Group -- Analyst\nThank you.\nOperator\nYour next question will come from Samik Chatterjee of J.P. Morgan. Please go ahead.\nJoe Cardoso -- J.P. Morgan -- Analyst\nHi. Yes, this is Joe Cardoso on for Samik Chatterjee. I just wanted to follow up on the last question, particularly around the supply chain issues that have been impacting companies industrywide. I guess just a clarification on my part.\nYou know, in this quarter, did you see an impact from supply issues on your top line and margins? And if so, what was the impact -- can you quantify the impact? And then relative to the guidance, are you guys baking in any headwind, material headwinds on the top line, or margins? Thank you.\nRon Nersesian -- Chairman, President, and Chief Executive Officer\nHi, this is Ron. As you know, in the last quarter, we exceeded our revenue guidance. And you've seen our guide for the next quarter, very pleased with the performance and how we've been able to deliver the revenue despite what's going on in the world. Of course, we see some COVID manufacturing decreases in capacity, as well as some supply chain components shortages.\n", "However, we planned ahead. We fought for those. And the most important part is that when you look at custom ICs, which have a very, very long lead time for many folks in the industry, we have an on-site fab that creates and produces all of our custom ICs. So that enables us to basically have complete control of that supply chain for the critical custom parts.\nWe're very confident in the guide that we have. But there's no doubt that we have built backlog and our order book is strong. So as the world situation unravels, we could increase revenue even more and more in the future.\nOperator\nYour next question will come from John Pitzer of Credit Suisse. Please go ahead.\nJohn Pitzer -- Credit Suisse -- Analyst\nYeah, good afternoon, guys. Congratulations on a strong quarter. Ron, I'm just kind of curious, with the recent C-band auctions in the U.S. now behind us, can you help me better understand how that kind of impacts your view on your comms business as we go throughout the balance of this year? And as you do that, I'd be kind of curious as to the sort of geographic distribution specifically.\nAs you think about next quarter and beyond, how much more important is China? Or are you actually starting to see things percolate in the U.S. and beyond?\nSatish Dhanasekaran -- Chief Operating Officer\nYeah, John, you know, it's a good question. With regard to the deployment scenarios globally, you know, as we all know, China started to lead the 5G deployments. And with the C-band auction coming in, the major announcements from the U.S. operator referencing a road map to deploy more 5G in the country, we view it as a positive.\nWe saw an uptick of our -- in our business in the U.S., specifically for capabilities in the C-band this quarter, and we view the funnel and pipeline to be strong there. But again, not to get too siloed on one spectrum, because at the end of the day, our customers are looking to test for creating devices and products that cater to the global marketplace. And right now, we have 9,000 different band combinations that our customers have to test for" ]

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[ "One day while driving with her father, Hannah Salwen noticed a Mercedes stopped next to a homeless man sitting on the curb. The Salwen family of Atlanta, Georgia, has decided to sell this house and give half the proceeds to charity. \"I said to my dad, 'If that guy didn't have such a nice car, then that guy could have a nice meal,' \" the 15-year-old from Atlanta, Georgia, recalled. And so began the tale of what the Salwen family calls \"Hannah's Lunchbox.\" Watch why family wants to give away $800K » It started as family discussions about what they needed versus what was enough. Hannah's father Kevin, an entrepreneur, is on the board of the Atlanta Habitat for Humanity and is no stranger to community work, but he said this family conversation was life-changing. \"We stopped and paused and thought about what are the things in the world that could really make a difference, a little bit of difference in the world,\" he said. They talked about selling their cars or other things, but it was Hannah's mother, Joan, who came up with selling their 6,500-square-foot house, donating half the proceeds and then moving into a house half the size. For nine years, the family lived in a historic 1912 mansion near downtown Atlanta. It boasts five bedrooms, eight fireplaces, a kitchen that would make any cook jealous and even an elevator. See the new and old houses, side by side » When Hannah would bring friends over, she said, often their jaws would drop and they'd gasp, \"Wow, you live here?\" Like most teens, Hannah loves to shop, and she jammed every space of her massive walk-in closet full of clothes. But she also knows many people are less fortunate; she volunteers at a local community food bank and other relief agencies. Joan Salwen, a teacher, said the mansion was her dream home. \"It was a challenge,\" she said of giving up that house. \"It was a test, almost, to see: How committed are we? I mean, how serious are these kids about what we should do? And they all nodded and there we were.\" So the Salwens put the house up for sale in May 2007 and started figuring out what they would do with half the proceeds, which would amount to more than $800,000. ", "They spent six months researching charity organizations before deciding on the Hunger Project, an organization dedicated to helping end world hunger through people helping themselves. Hunger Project Vice President John Coonrod said the family met with organizers in New York and notified them months later that the charity was the winner. When the Salwen house sells, the money will be channeled through The Community Foundation for Greater Atlanta over a six-year period and end up in Ghana, Coonrod said. \"This will underwrite a process in more than 30 villages to enable people to meet all of their basic needs on a sustainable basis,\" he said. \"They will be able to grow enough food, to build clinics and schools, and the villagers will be doing the lion's share of the work.\" Coonrod said he'd never heard of a family donating in this way. \"Hannah's awakening to social injustice, and her family's ability to make a difference in that issue will make a profound difference in the lives of tens of thousands of people,\" he said, estimating the money could affect more than 20,000 people in Ghana. Hannah's 13-year-old brother, Joseph, was so impressed with his big sister's ideas that he made a three-minute video of the family's project. Watch Joseph's video The video won the grand prize in the 2008 \"My Home: The American Dream\" contest, sponsored by Coldwell Banker and Scholastic Publishing. In the video, Joseph tells viewers, \"We're showing you can redefine the American dream.\"" ]

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[ "r outstanding quarter as our technology investments, portfolio management and operational discipline continue to yield strong and consistent results. Upside during the quarter was attributable to new product cycles across our largest customers. In mobile products, the trend toward integration is driving our industry and integration is all the more important with the introduction of 5G.\nQorvo is securing significant content in 5G smartphones with our premium technologies and are highly integrated modules, enabling our customers to enhance system performance, overcome design challenges and bring their smartphones to market faster than ever. In IDP, our markets are supported by secular trends, including the deployment of 5G as well as the proliferation of IoT, the adoption of WiFi 6 and the performance advantages of GaN technology in defense, broadband and massive MIMO base station applications. Looking at our September quarter by business, our performance in mobile products was driven by multiple customers and product segments. Samsung was a standout as we expanded our participation in their mass market phones.\nQorvo's broad portfolio of enabling technologies, coupled with a robust supply chain and solid product execution, is allowing us to solve our customers most challenging problems across all tiers of their portfolio. To that end, we're enjoying significant traction with our four largest customers in China, designing our low, mid-high and ultrahigh band solutions into their upcoming 5G smartphones. Our wins are broad-based and our solutions are mated with all the major chipset providers, including SLSI, Qualcomm, MediaTek and HiSilicon. In mobile WiFi applications, we are ramping our recently launched WiFi 6 FEMs in support of multiple leading China-based smartphone OEMs.\nTurning to IDP. In our defense business, we are a lead participant in a U.S. government program to advance the state-of-the-art and RF integration packaging and test. We are also increasing our GaN opportunities with the U.S.\nprimes, and we secured wins for our GaN amplifiers and integrated front-end modules for X-band and Ka band, defense radar and communications programs. In infrastructure, the ramp of 5G appears to be rolling out faster than the ramp of 4G. Activity is primarily in the sub-six gigahertz frequencies, and Qorvo's GaN technology is increasingly the technology of choice. During the quarter, we secured new GaN design wins for sub-six gigahertz, massive MIMO deployments, expected to span multiple years.\n", "Among China-based carriers, it's been widely published that China Unicom and China Telecom will share cell sites to accelerate 5G deployments. This development will drive the need for broader band and higher power amplifiers, favoring Qorvo's GaN solutions. GaN enables operators to drive more power through smaller form factors and achieve better performance at higher frequencies. In IoT, the ratification of WiFi 6 is a catalyst for the industry and design wins for Qorvo's WiFi 6 solutions are building.\nDuring the quarter, we launched the world's first WiFi 6 dual-band front-end module and the world's first WiFi 6 iFEM for CPE applications expanding our product portfolio for retail, enterprise and network operators. In automotive, we commenced production shipments of our WiFi FEM supporting multiple automotive OEM platforms. And notably, our V2X co-existence BAW filters for 5.9 gigahertz were recently selected by a top automotive OEM for models shipping next calendar year. With the continued expansion of IoT devices and smart home control, Qorvo is uniquely positioned to combine WiFi 6 iFEMs with advanced filtering and multi-protocol SoCs into highly integrated solutions reducing time to market and supporting smaller end devices.\nWe expect many of today's gateway devices and voice assistance products to incorporate all of these technologies enabling interim control of the entire smart home. In programmable power management, Qorvo is at the forefront of multiple trends, including the trend toward brushless D.C. motors. During the quarter, w" ]

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[ "nic growth of 21%, a favorable palladium impact of 4% and an 8% benefit from FX translation. Organic growth in chemistry revenue for Electronics was 9% in the quarter, underpinned by the strong growth in the smartphone market as well as sustained growth in the high-performance PCB and semiconductor-related businesses.\nAs mentioned in May, this growth has been anticipated, and we are pleased to see it unfold. That said, please keep in mind that 2020 saw some shifts in typical seasonality. Work from home created stronger demand for laptops in the third quarter and a well-known OEM shifted its product launch patent into the fourth quarter. As we lap this quarter, the base effect may cause mathematically lower growth rates compared to what we reported in the first half of 2021.\nElectronic equipment sales enjoyed another outstanding quarter with organic revenue up 115%. The demand stems from the sources we have outlined previously, the full transition to 5G for the smartphone manufacturers with a high demand for computing. Our next-generation machines are in high demand as OEMs and PCB manufacturers seek to meet consumer demand. Electronics generated $85 million of adjusted EBITDA in the quarter, a $23 million or 36% improvement over the prior year period, primarily driven by the strong organic volume growth and our lean cost structure.\nMargin was 34.3% in the quarter, up 20 basis points, which is a reflection of the robust organic volume growth, partially offset by product mix effects from high equipment sales and the palladium pass-through. Moving to Slide 6 now. GMF total revenue grew 71% to $129 million in the second quarter, comprised of organic growth of 59%, a 1% positive impact from palladium and an 11% tailwind from FX. From a mix perspective, chemistry revenues grew organically 59% and equipment revenue rose 48% from a low base.\nAs Geoff said, this rebound is partly a reflection of the annualization of the quarters heavily affected by the COVID-19 pandemic. We also observed that high-end automobile and construction applications were stronger than expected. Automotive producers are still operating below full capacity due to the semiconductor shortage but the demand environment is intact. So we believe that demand is simply being pushed out possibly even into 2022.\n", "In the meantime, we are also experiencing promising project wins outside the auto market and strong demand for our sustainability-focused solutions. As Geoff touched earlier, we have seen an increase in interest for our sustainability-related products. As CFO, it's worth noting that our preparation to meet this opportunity rests on many years of development and investment. For example, the cumulative spend on R&D for the Covertron system has been nearly $20 million, spread over more than a decade.\nAs we look to earnings, GMF adjusted EBITDA hit $33 million in the quarter and the adjusted margin was 25.8%. The growth in adjusted EBITDA reflects our strong operating leverage partially offset by the higher freight expenses as a result of the well-known supply chain disruptions and the mentioned higher material inflation. The recovery of the adjusted EBITDA margin to 25.8% is thanks to similar effects, and it's worth noting that we're now back on the path to normalized margins. Let's now move to Slide 7.\nWe generated strong free cash flow of $86 million before debt service, returning to adjusted cash flow conversion rate more in line with our long-term targets of greater than 60%. The strong cash flow was also a function of our efficient working capital management, with working capital at 16% of revenues in the second quarter as well as our efficient capex, which was 2% of revenue. Please note that we have a typical seasonality to our capex, with the majority coming in the second half of the year. So although the spend as a percentage of revenue was lower than our full year guidance, we're fully aligned with our internal expectations.\nAs a result, at quarter end, we had $245 million of cash and a revolving credit facility of $233 million available. So in total," ]

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[ "In 1988, a relatively unknown rock and blues guitarist named Warren Haynes got some of his friends together to play music in Asheville, North Carolina. It was just an opportunity for local musicians to jam during the holidays, the one time of year they were all in town together. Warren Haynes' good work has been noted by the street named after him. The artists also wanted to give back to the community, so they gave the money raised by their show to various charities. The tradition has continued. Now celebrating its 20th anniversary, Haynes' Christmas Jam has evolved into an epic annual event for the musicians, fans, and particularly Habitat for Humanity. \"We need Habitat For Humanity more now than ever, with the whole mortgage crisis that put us where we are now, and the fact that Habitat is about building homes for people that can't afford homes as opposed to lending money to people who can't afford homes,\" Haynes told CNN. Haynes and his wife, Stefani Scamardo, decided to donate 100 percent of the Christmas Jam proceeds to Habitat for Humanity years ago because they could see exactly where the money was going. They go back each year and meet the families they helped build homes for. Singer Joan Osborne echoed Haynes' thoughts. \"It's a scary time. A lot of people are losing their homes so it's good to be able to do something that helps with that specific problem,\" she said. Going into 2008's shows, which were held December 12 and 13, the Christmas Jam had raised more than $665,000 for Asheville's Habitat For Humanity. The money has gone into building 12 houses in Enka Hills, a wooded community surrounded by mountains on a street the organization appropriately named Warren Haynes Drive. (In 2005 Habitat also built a house in the New Orleans Musicians Village.) The Thursday before the show, Haynes presented the key to a new home to single mother Suzie Cromer and her 8-year-old daughter. \"Meeting the families and seeing the work that Habitat's doing with our help -- you know its hard to see that and not get emotional,\" Haynes said. \"Warren is a hero in our mind,\" said Habitat's Arianne Kjellquist. \"In western North Carolina, the housing costs are really out of whack with what the local wages are, so there's a big discrepancy there. There are more people that maybe would have been approved previously when the lending standards weren't so strict.\" ", "This year's Christmas Jam lived up to the long-lasting and crowd-pleasing traditions of previous shows. The first night's show ran more than nine hours, ending with an Allman Brothers set after 4 a.m. The second night's show ended at 3:30 a.m. Performers included Ben Harper and Relentless 7, Travis Tritt, Michael Franti, Osborne, Ivan Neville's Dumpstaphunk, Steve Earle and Haynes' band Gov't Mule. Perhaps the most anticipated addition this year among both fans and artists was former Led Zeppelin member John Paul Jones, who played acoustic mandolin, bass and keyboards throughout the weekend with just about everyone. Jones said he was happy to pitch in. \"In the economic climate like this, people really just want to get out and enjoy themselves and forget about the day to day stuff that they have to deal with. So it works on many levels,\" Jones said. \"The fact that it is for a good cause is just a huge bonus.\" Haynes says the 20-year evolution of the Christmas Jam reflects his career. \"We've grown up together. Its a parallel of the progress that I have achieved, and the event reflects not only the philosophy I share with these people but the mission.\" And as fans danced the night away while the artists played their hearts out, families' dreams of owning their perfect home come true. \"I would have never imagined or dreamed that it would turn into what its turned into,\" Haynes reflected with a huge smile." ]

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[ "w. As you say, we've really built out a portfolio that really can take advantage of the secular drivers around sustainability and, quite frankly, worker safety. And so we feel good about that. I think the Intelex platform itself adds tremendous value. As I mentioned in the prepared remarks, we use it for our own sustainability assessment, and it's a wonderful tool to help us understand how to think about goal setting and how to drive action to really improve, not just -- not just report on sustainability, but more importantly, take action. So I think we feel very good about the platform. We think there's investment opportunities in the future that we can make. So I think relative specifically to your question, Intelex has been a double-digit grower for us. It's mostly been in the teens. I think as we continue to build on it, really, as we hit the accelerator with some of the machine learning opportunities that we've really got with ehsAI, we'll start to see some of those things in the back half of the year. I think we can continue to move that growth rate. I'd like to think we can go beyond that. But I think in the near term, we certainly think it's a double-digit grower for sure.\nAndy Kaplowitz -- Citigroup -- Analyst\nAppreciate the color, Jim.\nJames A. Lico -- President and Chief Executive Officer\nThanks, Andy.\nOperator\nYour next question is from the line of Deane Dray with RBC Capital Markets.\nJames A. Lico -- President and Chief Executive Officer\nHi, Deane.\nDeane Dray -- RBC Capital Markets -- Analyst\nThank you. Good afternoon.\nJames A. Lico -- President and Chief Executive Officer\nGood afternoon.\nDeane Dray -- RBC Capital Markets -- Analyst\nI want to circle back on the implications of getting more site access. Could you give us a sense of maybe on a percent basis, how much has opened up? But more importantly, what are the implications? Is there a pent-up business that really has been depending on being able to get back in? Should we think about a catch-up here?\nJames A. Lico -- President and Chief Executive Officer\n", "Yes. Look, I think site access comes in the way of two -- it comes in the form of two ways. Number one, I think on our -- anywhere where we have service businesses, but let's call it, non-healthcare. We certainly -- we've gone to remote capability, but it takes longer to turn customers on and software as an example. And so I think there is some pent-up demand. But I think, to be honest with you, Deane, we've had such little access here over the last several-several months that it's hard to predict how quickly it will open up, particularly when you think about that on a global basis. So we certainly believe it's going to continue to improve, but I wouldn't say necessarily that we think it's going to all be better by the end of the year. We just don't have enough visibility yet to -- I think most customers aren't really opening up here until maybe the third quarter. So I think it's still a little early to predict it. But I think the predictions that we have are really based on some of the trends we've seen, which we feel good about. But I think they could get better if we could see vaccinations get more -- more prolific here and start to see more opening up of businesses. So that's on -- that's everywhere from Gordian and Accruent to eMaint to those -- even like our Tektronix Calibration business, which some of it is on site. On the healthcare side, we certainly think that we can continue to have access. We're in hospitals today doing service for the most part, but everything is a little slower. We mentioned in the Censis prepared remarks, though, that we are starting to see purchasing decisions free up a little faster. And again, that's all built into our guide as well that we think we continue to get better. But I think at the end of the day, it is because pockets in the United States plus the nations, it's really too hard -- it's still a little difficult to necessarily predict exactly how that opens up in a sense of any of the pent-up demand, if you will.\nDeane Dray -- RBC Capital Markets -- Analyst\nGrea" ]

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[ "Multiomics, multi-omics, integrative omics, \"panomics\" or \"pan-omics\" is a biological analysis approach in which the data sets are multiple \"omes\", such as the genome, proteome, transcriptome, epigenome, metabolome, and microbiome (i.e., a meta-genome and/or meta-transcriptome, depending upon how it is sequenced); in other words, the use of multiple omics technologies to study life in a concerted way. By combining these \"omes\", scientists can analyze complex biological big data to find novel associations between biological entities, pinpoint relevant biomarkers and build elaborate markers of disease and physiology. In doing so, multiomics integrates diverse omics data to find a coherently matching geno-pheno-envirotype relationship or association. The OmicTools service lists more than 99 softwares related to multiomic data analysis, as well as more than 99 databases on the topic.\n\nSystems biology approaches are often based upon the use of panomic analysis data. The American Society of Clinical Oncology (ASCO) defines panomics as referring to \"the interaction of all biological functions within a cell and with other body functions, combining data collected by targeted tests ... and global assays (such as genome sequencing) with other patient-specific information.\"\n\nSingle-cell multiomics\nA branch of the field of multiomics is the analysis of multilevel single-cell data, called single-cell multiomics. This approach gives us an unprecedent resolution to look at multilevel transitions in health and disease at the single cell level. An advantage in relation to bulk analysis is to mitigate confounding factors derived from cell to cell variation, allowing the uncovering of heterogeneous tissue architectures.\n\nMethods for parallel single-cell genomic and transcriptomic analysis can be based on simultaneous amplification or physical separation of RNA and genomic DNA. They allow insights that cannot be gathered solely from transcriptomic analysis, as RNA data do not contain non-coding genomic regions and information regarding copy-number variation, for example. An extension of this methodology is the integration of single-cell transcriptomes to single-cell methylomes, combining single-cell bisulfite sequencing to single cell RNA-Seq. Other techniques to query the epigenome, as single-cell ATAC-Seq and single-cell Hi-C also exist.\n\n", "A different, but related, challenge is the integration of proteomic and transcriptomic data. One approach to perform such measurement is to physically separate single-cell lysates in two, processing half for RNA, and half for proteins. The protein content of lysates can be measured by proximity extension assays (PEA), for example, which use DNA-barcoded antibodies. A different approach uses a combination of heavy-metal RNA probes and protein antibodies to adapt mass cytometry for multiomic analysis.\n\nMultiomics and machine learning\nIn parallel to the advances in highthroughput biology, machine learning applications to biomedical data analysis are flourishing. The integration of multi-omics data analysis and machine learning has led to the discovery of new biomarkers. For example, one of the methods of the mixOmics project implements a method based on sparse Partial Least Squares regression for selection of features (putative biomarkers).\n\n\nhttps://en.wikipedia.org/wiki/Multiomics" ]

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[ "ed about the international prospects. So I'm always -- I start macro, which is we're a few years away from being at that $1 trillion TAM. And roughly 60-plus percent of that is outside of the United States or outside of North America.\nSo of course, we want to capture that opportunity. And because we work with the biggest brands in the world who advertise all over the world, they don't want 200 DSPs as partners. They would like one to take them all over the world and especially to use their learnings in any market to benefit all the other markets. And so as, of course, you know, our focus has been on expanding CTV all over the world.\nCTV more than doubled across APAC. CTV in EMEA grew by more than four times in 2021. Shanghai and Hong Kong have been driving our growth in Northern Asia Pacific and just some amazing partnerships across APAC, with Samsung smart TV devices now reaching over 50 million viewers, and thus having access there. Xiaomi in India or Disney+ Hotstar in India.\nAgain, China was our fastest-growing office again, which when the numbers are small, that's less significant. But when you do it over and over again, it continues to be especially significant. Especially when you look at China and just say that's the second-largest media market in the world, it's roughly half the size of the U.S., but it's growing at twice the pace. So with that being true, we think that represents a tremendous opportunity.\nAnd that we're in a unique position to many others who are looking at that market in that we are representing the largest brands in the world who wants to spend in China. So unlike many other non-China-based companies who have been hurt by trying to go into market in China, we come to the market mostly with a focused spend in market and then to do extension where Chinese brands and products will reach all over the rest of the world, which, of course, they want more distribution. So I'm very encouraged by the fact that we've seen all this growth in those areas. But I can't underscore enough how important it is for us to continue to lead in CTV.\nWe believe we've done that in the U.S., and we've proved that in the U.S. and Australia arguably years ago in 2020. In 2021, I think we started to show amazing green shoots across other markets in EMEA, most notably in the U.K. and Germany.\n", "So with all of the progress of CTV around the world and the pressure on content owners, that is sometimes slightly different in other markets, but the general trend that is happening in the U.S. is happening there, too, just with slightly less content. But that makes AVOD even more valuable in some way that makes the ads more scarce, but it makes auction dynamics and real-time pricing even more valuable for those markets, which we think then just lends to our business model. So we expect to continue to lead in CTV around the world. \nBlake Grayson -- Chief Financial Officer\nAnd then following up on your Q4 question. The quarter was fundamentally really strong. We have the hardest comp that -- in a long time in Q4 -- comparing against Q4 of '20, not just because of the elections, but also because we had that ramp back out of COVID that was a real accelerator for us in 2020. So thinking about those issues, I think that the Q4 looked really good.\nNo supply chain issues to call out at all. I think another data point is if you just look at a two-year simple stack on growth rates in Q4, just the year-over-year '20 and '21, Q4 was faster than the full year for us. And so it just goes to the strength and the momentum that we've seen in that we've now kind of disclosed now into our guidance. So we're really excited about it.\nBrent Thill -- Jefferies -- Analyst\nThanks. \nOperator\nThank you. Our final question comes from Matt Swanson at RBC. Your line is live.\nMatt Swanson -- RBC Capital Markets -- Analyst\nAll right. Thank you, guys, so much for squeezing me in here. I'll ask two quickly. The first for Jeff.\nThinking about ramp time for shopper data -- and kind of in two ways: one, as far as how long it takes a partnership like what we're seeing w" ]

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[ "se areas.\nDespite the ongoing inventory correction, our customers' demand continue to exceed our ability to supply. We expect our capacity to remain tight throughout 2022 and our full-year growth to be mid-30% in U.S. dollar terms. Three key factor in supporting TSMC's strong structural demand are our technology leadership and differentiation, our strong portfolio in high-performance computing and our strategic relationship with customers.\nAll of these factors are TSMC's strength in the foundry industry. First, on technology leadership and differentiation, TSMC's technology position is much stronger today as compared to previous years. Looking ahead to 2023, we are working diligently to provide the industry most advanced technologies and making it available to all the product innovators with the successful ramp of N5, N4P, N4X, and the upcoming ramp up of N3, we will expand our customer product portfolio and increase our addressable market. The macroeconomic uncertainty may persist into 2023.\nOur technology leadership will continue to advance and support our growth. Secondly, the massive structural increase in the demand of computation, underpinned by the industry megatrend, continues to fill greater need for performance and energy-efficient computing, which require use of leading-edge technologies. Through our comprehensive IP ecosystem and optimized process technology, we are able to address and capture the structural demand and build a strong portfolio in high-performance computing. We expect HPC to be the main engine of TSMC's long-term growth and the largest contributor in terms of our incremental revenue growth in the next several years.\nThird, our strategic relationship with our customers are long term in nature, developed and built through many years of collaboration and investment to enable customers' success in the high-end market. We continue to work closely with our customer and technology development, capacity planning and pricing to support their long-term demand and growth. With all these three differentiating factors, we expect our capacity utilization to remain healthy in 2023. And our business to be less volatile, they're more resilient, supported by the strong demand for our differentiated and leading advanced and specialty technologies.\n", "Now let me talk about TSMC's long-term growth outlook. While macroeconomic headwinds bring near-term uncertainties that may persist, we believe the fundamental structural growth trajectory in the long-term semiconductor demand remains firmly in place. We continue to observe silicon content increase across many end devices, fueled by process technology migration and increased functionality. For example, the number of CPUs, GPUs, and AI accelerators in the data center are increasing.\n5G smartphone carries substantially higher silicon content as compared to 4G smartphone. The amount of silicon content in today's car continue to rise. While the device unit growth of many electronics device may be flattish to low single-digit percentage range, in the next several years, the silicon content growth will be higher, in the mid- to high single-digit percentage range and support the long-term structural semiconductor demand and increase our addressable wafer demand. TSMC's capex and capacity planning are always based on the long-term structural market demand profile, not near-term factors.\nWe are working closely with our customer to plan our long-term capacity and investing in leading edge and specialty technology to support their growth. We will manage our business prudently through the near-term uncertainties, and we remain highly confident in our long-term growth outlook. With our technology leadership, manufacturing and capacity support and customers trust, TSMC is well positioned to capture the strong multiyear growth from the favorable structural megatrend of 5G and HPC-related applications and deliver profitable growth for our shareholders. We reiterate our long-term revenue to be between 15 and 20 CAGR over the next several years in U.S.\ndollar terms. Next, let me talk ab" ]

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[ "ifying where wireless networks are going and investing early to position the company to capitalize on future opportunities, as we have done with small cells, edge computing and CBRS.\nOne of the core principles underpinning our strategy is to focus on the U.S. market, because we believe that represents the best market in the world for wireless infrastructure ownership, since it has the most attractive growth profile and the lowest risk. And we believe this dynamic of higher growth and lower risk will continue into the future, which is why we expect our U.S. based strategy will drive significant returns for shareholders.\nWith that in mind, we have invested nearly $40 billion in towers, small cells and fiber assets in the top market that are all foundational for the development of future 5G network. We believe our unique strategy, portfolio of the infrastructure assets and proactive identification of future opportunities provide a platform for sustained long-term dividend growth as wireless network architecture evolves and our customers' priorities shift over time.\nToday, our customers are primarily focusing their investment on macro sites as towers remain the most cost-effective way to deploy spectrum at scale and established broad network coverage. With our high quality towers concentrated in the top markets, we are clearly benefiting from this focus with an expected 6% organic growth for our Tower segment in 2021 and an expected 20% increase in tower core leasing activity next year when compared to these 2021 levels. With history as a guide, we believe the deployment of additional spectrum on existing cell sites will not be enough to keep pace with the persistent 30% plus annual growth in mobile data traffic.\nAs a result, we expect cell site densification to remain a critical tool for carriers to respond to the continued growth in mobile data demand as it enables our customers to get the most out of their spectrum assets by reusing the spectrum over shorter and shorter distances. When the current cell site upgrade phase shift to densification phase, we believe the comprehensive offering of towers, small cells and fiber will be critical for our customers and provide us with an opportunity to further extend the runway of growth in our business.\n", "While we expect the densification phase of build out will drive additional leasing on our tower assets for years to come, we believe small cells will play an even greater role as the coverage area of cell sites will continue to shrink due to the density of people and therefore the density of wireless data demand. With more than 80,000 small cells on air or committed in our backlog, high capacity fiber assets and the vast majority of the top 30 markets in the U.S. and industry-leading capabilities, we believe we are well positioned to deliver value to our customers as their priorities evolve, driving meaningful growth in our small cell business.\nBigger picture, when I consider the durability of the underlying demand trends we see in the U.S., how well we are positioned to consistently deliver growth through all phases of the 5G build out with significant potential upside in our comprehensive asset base as wireless networks continue to evolve. Our proven ability to proactively identify where wireless network architecture is heading and to be an early investor in solutions to help future networks, the deliberate decisions we have made to reduce risks associated with our strategy and our history of steady execution.\nI believe that Crown Castle stands out as a unique investment, that will generate compelling returns over time. In the near term, as I mentioned before, we expect to deliver outsized AFFO per share growth of 12% in 2021. We expect to generate 8% growth in AFFO per share in 2022 at the high end of our long-term growth target and supported by an expected 20% increase in tower core leasing activity and we increased our common stock dividend by 11% for the second consecutive year.\nLonger term, we believe Crown Castle provides an exciting opportunity for shareholders to invest in" ]

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[ "it's a lot of concrete, steel and fiber, et cetera. We believe, over time, there is an opportunity for the wireless operators to actually lower capex, while the active part of the network will increase in importance. So there is a mix shift going on here where we see that our -- the market we address actually can continue to grow even though capex in the industry probably will start to taper off in the next few years. So we remain very, in that sense, confident that we're going to see a long-term growing market for 5G.\nBut then, of course, short-term fluctuations, but that should shrink through good demand.\nCarl Mellander -- Chief Financial Officer\nShould I take the second one there? Alex, you asked about DGS or digital services there. And I would maybe start on the big picture there. The customers now are moving into -- obviously, into 5G, and it's about cloud technologies and what we call intelligent automation. And 5G core, of course, plays such a critical part in that as well to enable, if you will, the full potential of 5G networks.\nThat's exactly where we play. And that's where you see the 5G core contracts coming in, and we have gained so many of them, even 80%, as we said. So that's really the big picture. And then now we are in implementation of those initial contracts.\nIt takes a bit of initial cost. But of course, as soon as we -- as those networks go live and we start to -- customers start to migrate subscribers over there, we will see revenue take off. And actually, we saw strong growth of the 5G core contracts in this quarter already. But still, there's much more to come, obviously, on that side.\nAnd that is one of the key pillars in the entire turnaround here of digital services going forward.\nPeter Nyquist\nThanks, Carl, and thanks, Alex. We will move to the next question, which comes from Peter Kurt Nielsen at ABG. Hello, Peter Kurt. Good morning.\nPeter Kurt Nielsen -- ABG Sundal Collier -- Analyst\nHi, Peter. Good morning, gentlemen. Just a question, Carl, if I can stay with digital services. You spoke extensively at Q1 about the need to -- for improving sales execution.\n", "And as has just been highlighted, you are seeing organic growth in Q2. Is that simply, Carl, a function of the better market and the 5G Core market picking up, as you said? Or have you seen early signs of your own execution improving here? And are you sort of confident that you can improve that going forward? And to what degree do you expect the new structure and the merger with managed services will help you on that? Any color here would be appreciated. And perhaps if you could talk a bit about how you see -- how we should view seasonality for the second half of the year.\nCarl Mellander -- Chief Financial Officer\nAnd maybe on the first point, I mean as we get further and further into this initial contracts, we also -- we learn and we improve and we get to the milestones in the projects, and that's then reflected in the growth we see in those contracts. And that will, of course, continue. 16 out of the 20, as you know, of the largest operators have chosen Ericsson for 5G core, and we are in the midst of implementing those contracts now. Of course, that is going to drive revenue and profitability for the period -- for the coming periods.\nThat's quite clear. Then when it comes to the new structure, maybe would you like to take this one? Because of course, there we see a clear benefit in merging the managed services and the digital services part.\nBorje Ekholm -- Chief Executive Officer\nYes. And the key here is there are increasing convergence between managed services and digital services in sense of automation, orchestration of the network. And we believe we can get both -- or call it some -- there are going to be some cost synergies, clearly, and some synergies from consolidating our offerings and focusing really just having one solution, so to say. But we think also that's going to lead to better sales execution.\nIt's easier to go to customers with a clear solution argument when we can offer an orchestration solution and automation solutio" ]

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[ "Wearing a plaid green A-line spring skirt from her new fashion line, paired with a black patent leather belt and black leather gladiator sandal stilettos, \"Sex and the City\" actress Kristin Davis is the perfect combination of sweet and fierce when we meet up after her fashion show at the Belk department store in Atlanta, Georgia. Kristin Davis surrounded by models and Belk store official Arlene Goldstein. It's a look that totally says her character, Charlotte, with a little bit of screen pal Carrie. Davis is so much like her character, adorable and upbeat, I expect Carrie or Samantha to drop in on our conversation and say something to shock her. As any true fan knows ... OK ... as every woman knows, watching \"Sex and the City\" was like being front row at a fashion show with a plot. TV show and movie costume designer Patricia Field dressed the characters in haute couture as they skipped down the streets of New York City in $600 stilettos. But is this reality? Most sane women wouldn't choose to walk even one city block in high heels. And most women certainly can't spend a month's rent on a belt or bag, even if they have a truly fabulous party to wear it to. So, what about us, the fashionistas on a budget? Are we to be ignored, forced to wear boring clothing and practical shoes? Luckily, no; designers are catching on. Target features affordable lines from high-end designers like Alexander McQueen and Isaac Mizrahi. All of the pieces in Sarah Jessica Parker's clothing line Bitten cost less than $20 before the clothing store that carried them went under. Davis is the latest celebrity to jump on the clothing label bandwagon, designing a line for Belk department stores. Will she meet the same fate as Parker? Davis has the following to be successful. Although her character was by far the most conservatively dressed (Carrie strolling through town in just a bra top, anyone?), she had the most wearable wardrobe, and Davis became a fashion icon along with the rest of the ladies. Her favorite piece from her line? \"I can't decide, impossible to choose!\" she says. So I choose for her: definitely the gladiator heels. \"It's important for women to have a strong shoe,\" she says. \"Then you can wear anything on top. With a strong shoe on, you're good to go.\" ", "She admits she didn't have a defined style before meeting Field, who bluntly told her that \"Sexy Secretary\" was going to be her look. Davis' philosophy is a good one: Stick with what works. She takes the look that Field defined for her \"Sex and the City\" character. Original it's not, but everything coming down the runway is something the stylish Charlotte York would definitely wear. Davis is in touch with all of us real women out there, saying, \"I don't want to make clothing that only skinny actresses could wear.\" Her solution? Dresses, shoes and swimsuits worthy of a \"Sex and the City\" episode that you don't need Park Avenue pockets to afford. It's versatile enough to look good on every body type. \"Everyone has body issues. I really wanted to create pieces that looked good on different kinds of bodies. I had all of my family members trying on the outfits!\" she says with a laugh. Davis won't spill any secrets from the scripts of the \"Sex and the City\" movie sequel, which comes out in May 2010, but she admits it's a \"happy\" movie. She does hint that our famous foursome might have to cut back a little on their clothing expenses as art imitates life. And she's willing to share some fashion tips: How to look like you stepped out of the wardrobe room on the set of the next \"Sex and the City\" movie? Green. \"It's THE color\" she says. And hey, who" ]

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[ "rket opportunity. We'll continue to invest to extend our technologies and expand our presence and these complimentary filtration markets. I've talked about the opportunities we have in specialty coatings with ITASA and with our digital transfer business.\nOur third platform engineered materials utilizes some of our most specialized material technologies in a growing market. This business is growing double digits top line and bottom line with future growth supported by recent investments that will increase our capacity, while our growth will come disproportionately from technical product, which is now 70% of Neenah. We're also successfully growing and premium packaging and consumer products. I mentioned earlier a few of these recent successes that are driving growth in these areas.\nFinally, I know that all four of our targeted growth platforms benefit from favorable macro trends, like the need for improved air and water quality, an aging population and a growing preference for sustainable products. And nation is also like key catalysts that will add to our growth rate. Well, always a part of our focus. I'm encouraged by the direction we're heading under our new Global Head of innovation. We've aligned our R&D teams to leverage their knowledge and skills across Neenah, and are tapping into employees and customers for input insights and ideas. This will allow us to identify and act more quickly on opportunities to unlock even greater value with existing and new customers and market. And I expect our pace of development to continue to increase over time.\nTurning next to margins, we expect both segments. Ultimately, to achieve sustainable mid team EBIT margins. Margins will benefit from an improving and diversified mix. As our faster growing and more advanced products tend to be the most profitable as our performance this quarter demonstrates. And our innovation efforts will also be pointed to these higher margin products and markets. The Neenah operating system is another way we'll continue to drive meaningful and sustainable margin improvement.\nAs a reminder, this global manufacturing initiative is based on lean principles. And we've recently begun implementation at two of our largest facilities. That's far results have exceeded our expectations. And ultimately, we expect to unlock $20 million of value annually and support our employees and customers with improved safety, quality, delivery and cost.\n", "As I said in our last call, none of this would be possible without the right people. I'm pleased with our talent and with a culture that makes safety the top priority if result oriented with a strong bias to speed, and it's collaborative and inclusive. We started off the year strong with our growth and margin engines delivering ahead of expectations. In the near-term, we are facing inflationary headwinds, and we're taking actions to overcome these just as we have historically, we have a strategy with clear catalysts and initiatives under way that will create long term value and continued Neenah's transformation into a faster growing more profitable specialty materials company.\nBefore we open the line for questions, I'd like to thank Bill McCarthy, who has been our Investor Relations leader from the start, and with over 66 quarters of earnings cloud experience with Neenah in addition to IR, Bill has been involved in multiple areas in Neenah and we have valued and benefited from his expertise guidance Like, internally and externally. On our next call, we'll introduce Kyle Anderson, who will be taking over the IR function, and his contact information is on our website. Kyle has deep and broad experience with Neenah. And I'm confident he will also be highly effective in this role.\nI'd now like to open the call for questions.\nQuestions and Answers:\nJulie Schertell -- Chief Executive Officer\nHi, this is Julie and Paul. I don't know if we have a bad connection. But if you can hear us ask questions, we're here and available to answer\nPete Lukas -- CJS Securities -- Analyst\nYeah, can you hear me?\nPaul DeSantis -- Chief Financial Officer\nY" ]

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[ ". We continue to lead the industry in both areas of technical development and mass production volumes. Currently, over 16 gigawatts of N-type TOPCon cell capacity in Hefei and the hedging that ramping up smoothly with mass produced cell conversion efficiency exceeding 24.6%. We are consistently investing in technology for new cell structure upgrades and new metallization methods to increase efficiency and reduce costs.\nRecently, we set a new world record for our N-type TOPCon cell with maximum conversion efficiency, reaching 25.7%. At the same time, we are also performing iterations on the N-type cell technology platform to optimize and apply the latest technologies for mass production and achieve technical leadership among other peers.\nLi Xiande -- Chief Executive Officer, JinkoSolar Holding Company Limited\n[Foreign language]\nStella Wang -- Investor Relations\nAs the prominence and benefits of the N-type module growth, we have been seeing wider acceptance and increasing demand from global customers for other N-type products. We are confident about ramping up to full capacity and increase the sales for the Tiger Neo modules, giving us the advantage of growing our classic shares and increase in profit. In addition, we are optimistic on China's demand and are expanding our resources and local deployment to grow in the domestic market for our DG business in China. At present, all our efforts on building different channels are already seeing results.\nIn future, we will further coordinate our market strategy, pricing systems, and brand development. We believe this will give us technical advantages in the distributed generation sector and bring low-carbon, reliable, and highly economical products and solutions to our customers.\nLi Xiande -- Chief Executive Officer, JinkoSolar Holding Company Limited\n[Foreign Language]\nStella Wang -- Investor Relations\nWe have successfully ramped up the 16 gigawatts of N-type cell's production capacity. Taking into account our advantages in N-type cells and strong market demand, we plan to invest in the second phase of N-type cells with a total production capacity of approximately 16 gigawatts. The increase in N-type cell production capacity will further optimize our production infrastructure and to reduce integration costs. As a result, we are increasing our full year guidance.\nAt this time, we are expecting the annual -- we are expecting the annual production capacity of mono wafer, solar cells, and modules to reach 55 gigawatts -- 55 gigawatts and 60 gigawatts, respectively, by the end of 2022.\n", "Li Xiande -- Chief Executive Officer, JinkoSolar Holding Company Limited\n[Foreign Language]\nStella Wang -- Investor Relations\nBefore turning over to Gener, I would like to go over our guidance for the second quarter of 2022. We expect the total shipments to be in the range of 8.5 to 9.5 gigawatts for the second quarter of 2022.\nGener Miao -- Chief Marketing Officer, JinkoSolar Holding Company Limited\nThank you, Ms. Li. Module shipments in the fourth quarter were approximately eight gigawatt and less than 400 megawatt of wafers and cells are sold in China additionally. By the first quarter, our accumulated global module shipment has surpassed 100 gigawatts, and thus, becoming the first company in the industry to achieve this historic milestone.\nRegarding regional landscape, Europe, Asia Pacific, and emerging markets were the regions with the most of shipments. In terms of absolute numbers, our shipments to Europe increased by more than 30% quarter over quarter, and our shipments in China nearly tripled year over year. In Europe, the Russia Ukraine war boosted solar demand, and it is expected to grow steadily in the future. The high demand of distributed generation combined with successful for large-scale projects continue to demonstrate strong growth momentum in the Chinese market.\nAlthough deliveries for some domestic projects, has been delayed due to logistic restrictions caused by the resurgence of COVID-19 and the supply chain disruptions, we are still bullish on China's market demand and are moving" ]

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[ "Investigators are trying to determine what caused the crash of an airplane with a good safety record, flown by a well-respected airline, at one of the world's most modern airports. One of the casualties is taken from the crash site. At least nine people were killed and 55 injured when the Turkish Airlines Boeing 737-800 crashed Wednesday in a field near Amsterdam's main airport, splitting into three parts, officials said. It is too early to determine the cause of the crash but the flight data and voice recorders have been recovered, said Michel Bezuijen, acting mayor of Haarlemmermeer municipality, which is home to Amsterdam's Schiphol Airport. He said investigators still need to determine what, if anything, the pilots said in the moments before the crash. The injured included both crew and passengers, he said. The names of the dead and injured will not be released before Thursday, Bezuijen said. \"It will take more time. Probably tomorrow afternoon we can tell you about the identity of the victims, including the fatalities,\" he said. Another official said earlier that both pilots and an apprentice pilot are among the dead. \"There are still three crew members in the cabin,\" said Bob Steensma of the Dutch Justice Department. \"I'm sorry to say they are dead. We leave them there because we have to investigate the cockpit before we take the cockpit apart.\" Turkish Airlines said earlier the plane was carrying 134 people -- 127 passengers and seven crew members. Six people were critically injured, Ineke Van Der Zande of Amsterdam Emergency Services told reporters at a briefing. Watch aerials from the crash site » Twenty-five passengers were severely injured, she said, and 24 were lightly injured. Some 60 ambulances transported 84 people to 11 hospitals throughout the region, she said. There was no word on injuries to the others who were transported. Witnesses said they saw the nose of the plane pitch up suddenly before the crash, according to RTL journalist Greg Crouch. The plane broken into three pieces. One break was in front of the wing, splitting the \"Turkish\" logo in two, and a larger break was farther back along the fuselage. Most of the injured were seated toward the back of the plane, which sustained the most damage, a passenger on the plane told Turkish station NTV. Many of the passengers simply walked off the plane through the cracks in the fuselage, witnesses said. ", "A passenger on the plane who spoke to Turkish network DHA said he saw injured people trapped and squeezed between the seats when he walked out. iReport: Send your videos, stories Flight 1951 was arriving at Schiphol from Istanbul, Turkey, when it went down around 10:40 a.m. (4:40 a.m. ET). It came to rest in a farmer's field about 500 yards short of the runway, near the major A9 highway. Crouch said the weather at the time was partly sunny with no wind or rain. No fire broke out after the crash, Bezuijen said. Watch how Twitter was first to report the crash » A bank manager who was a passenger on the plane told NTV that there were no emergency announcements. The crew's last word to the cabin was an announcement to fasten their seat belts and prepare for landing, the bank manager said. He said he felt the pilot giving more power to the engines before feeling \"turbulence,\" then a sudden drop. He described the crash as similar to a sudden impact that was over in a matter of seconds. The U.S. National Transportation Safety Board said it was sending a team of investigators to Amsterdam to assist in the crash investigation. The Boeing 737-800 is a reliable aircraft that has been successful and safe in service, said aviation expert Kieran Daly of Air Transport Intelligence. \"They really are pretty much state-of-the-art airlines with every imaginable technical benefit the industry has come up with over the years,\" Daly told CNN. \"You would be optimistic that they would be quite survivable" ]

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[ "hich we are well positioned. So we will continue to invest in these areas including Search, machine learning, and Google Cloud. Finally, with respect to capex, on the fourth quarter call, we shared our expectation that investments in both technical infrastructure and office facilities would increase compared to 2019. We now anticipate a modest decrease in the level of total capex in 2020 compared with last year. The biggest change in our outlook is a reduction in global office facility investments due to both the need to pause most of our ground-up construction and fit-outs in response to COVID-19 and our decision to slow down the pace at which we acquire office buildings. In terms of technical infrastructure, we expect a moderate reduction to our forecast relative to the beginning of the year given the impact of COVID-19 on data center construction delays as well as the benefit of our ongoing focus on server efficiency. Overall, we anticipate technical infrastructure investment to remain at roughly the same level as in 2019 with relatively more spend on servers than on data center construction. Thank you and Sundar and I will now take your questions.\nQuestions and Answers:\nOperator\nThank you. [Operator Instructions] Our first question comes from Eric Sheridan from UBS. Your line is now open.\nEric Sheridan -- UBS -- Analyst\nThanks for taking the question and hope all is safe and well with everyone on the team there at Alphabet. Two questions if I can. One, on the comment with respect to direct response advertising on YouTube, would love to get a little more color on how direct response advertising as ad units continue to evolve and perform and how advertisers are using those ad units as part of their broader advertising goals. And then maybe, Ruth, for you, on the comment on expenses, just want to understand a little bit of how much of what your messaging on expenses is efficiency gains that you were aiming for in 2020 before we got to COVID-19 versus elements of the cost structure that you're reexamining as a result of the pandemic. Thanks so much.\nSundar Pichai -- Chief Executive Officer\n", "Eric, Thanks for the wishes. On YouTube direct response, we definitely are seeing traction there. I think an area where it really works well for example is app installs. That's a great example of it. Gaming is another good example of it and we are working on iterating and making the formats work better so that it applies to more context as well, but in general, I think businesses are learning to adapt. Obviously, we've had great success with Search and so we are bringing a lot of those learnings and we're sharing it with our customers and so we expect to see more traction there over time.\nRuth Porat -- Chief Financial Officer\nAnd on your second question, I like the way you framed it. Yes, we do have efficiency efforts that we started that we had going as we entered this year, but as a result of what we're seeing in the environment, our view was that we should really double down on those. And so when we go through the various areas that I mentioned, we had started the year with an expectation about really optimizing headcount around the various areas. What we've determined is we're going to, at this point, slow the pace of hiring. To be very clear, we are continuing to hire, but we are slowing the pace of hiring and that's helping as we're driving a deeper look into how do you optimize within each area. The same is true for example in some of the comments on marketing. We are continuing to invest in marketing. As you know well, sales and marketing line, the majority of it is headcount related and we do continue to invest here in ads and in particular in Cloud.\nAs it relates to the marketing component, namely ads and promo spend, we did reduce it relative to our plans in the beginning of the year and we continue to have a healthy budget for ads and promo particularly in digital to support many business areas, but as with the other areas of investment, we're really focused on optimizing across products and services and with physical event" ]

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[ "t you're seeing as you're looking through the rest of this year, maybe a little further out? And if you feel like you need some significant, additional efforts there in that portfolio and maybe even the possibility of some M&A focus there?\nScott McFeely -- Senior Vice President, Global Products and Services\nLet me try, and then Gary can add some color. So first of all, what we believe is the winning hand in that part of the network is a combination of what we've called Adaptive IP, sort of the next generation. I think of it as an IP, not necessarily burdened by the applications or protocols of the router that was built for the Internet 15-plus years ago, combined with the convergence of best-in-class optics, an intelligent photonic layer. And the software automation tools that go along with that convergence in order to be able to operationalize that in the network.\nWe think that is the architecture of the future, and it's a long game. And we've been investing on that for a period of time now, and you're starting to see the products come to fruition from those investments, both in our routing the software -- or sorry, our Routing and Switching portfolio, but also in our software assets. Blue Planet, yes, but also in our domain controllers MCP.\nGary B. Smith -- President and Chief Executive Officer\nSo John, just to reemphasize that, this is not sort of, obviously, as Scott said, sort of an epiphany to us. So I think we've been talking around this kind of convergence, actually probably for decades in the industry. I really do think that opportunity is presenting itself as the metro edge, particularly evolves. And we've been investing heavily. I think, basically, we've doubled the amount of technical talent that we've had on this area in the last couple of years, and also invested heavily on the go-to-market side. We think we're very well placed. We have an architecture that we think delivers a much more simplified and operationally better economic solution. We think it's very compelling. We think we have all the elements for that to be successful. Obviously, wouldn't rule out additional scale and technology in that space, of course. But right now, we think we have a good path with the architecture and the investments that we've made.\nJohn Marchetti -- Stifel -- Analyst\nThanks very much.\nGary B. Smith -- President and Chief Executive Officer\nThanks, John\nOperator\n", "Next question comes from Tal Liani with Bank of America.\nTal Liani -- Bank of America -- Analyst\nHi, guys. I have two questions. First of all, probably I'm going to ask you for the next 25 years is if you can give us an update on Huawei share replacement share gain? And the second one, both of you cautioned us enough about second half guidance that I want to ask about the specifics of your guidance. Meaning, what are the projects with what type of customers -- maybe not customer names, but types of customers and types of projects that need to materialize in order for you to hit your second half guidance? What is assumed -- categorically, what is assumed in the guidance?\nGary B. Smith -- President and Chief Executive Officer\nOkay. Let me take the first part of that, and then I'll hand off to Jim. So the question you're going to ask me for the next 25 years. Same kind of answer, I think. I think I described the major opportunity with Huawei is really in Europe, and that's again, to your point, about 25 years, it's probably not that long. But we're in the infrastructure business, this takes time, both time for decisions, time to operationalize, and to get all the back office done. And that is a multiyear program. Whilst this has had a lot of focus for all the reasons that we know in the last sort of 18 months to two years, we saw signs of this before. Basically, just -- and I would describe it more around reducing dependency. Such a large market share in Europe in all facets of infrastructure. And I think the carriers began to realize that, frankly, about three years ago.\nWhen you look at some of the wins we've had with Deutsche Telekom, with Vodafone, etc., those wins" ]

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[ "BEIJING, China (CNN) -- The International Olympic Committee has asked gymnastics officials to look into whether China's women's gymnastics team used underaged competitors, an IOC spokeswoman said Friday. China's He Kexin kisses her gold medal last week after winning the Olympic women's uneven bars. The committee asked the International Gymnastics Federation to clarify the situation, said spokeswoman Giselle Davis. She said she wouldn't call it a formal investigation. The Chinese women's gymnastics team won a gold medal in a team competition at the Summer Olympics Games. Five members won medals in individual competitions. Yet commentators, bloggers and others have raised questions about whether about half the members of China's team were old enough to compete -- athletes must be at least 16 in the year the games take place. In women's gymnastics, younger teenage girls can have an advantage over older competitors due to their often smaller, more agile bodies and lighter frames. \"We have asked the gymnastics federation to look into what have been a number questions and apparent discrepancies on this case,\" Davis said. A top Chinese Olympic official said questions regarding the ages of the athletes have been dealt with previously. \"The eligibility of the athletes has already been investigated and authorized by the international federation and, if they hadn't been cleared, they wouldn't have participated in the games,\" said Wang Wei, executive vice president of the Beijing Olympic Committee. Chinese officials provided the Olympic committee with passports, showing that team members were of legal age, but numerous challenges have been made. The latest came from a blogger known as \"Stryde Hax.\" The blogger claims to have uncovered proof that Chinese gymnast He Kexin is only 14. Watch bloggers question China's gymnasts » In Internet searches, \"Stryde Hax\" allegedly uncovered Web pages showing lists complied by China's General Administration of Sport that show a 1994 date of birth for He. That would make her 14 -- too young to compete in the Olympic Games. CNN has not been able to independently verify the information, but snapshots of the Web pages appear to back up the claim. Other bloggers have joined the search and reported similar results. The New York Times conducted its own investigation, producing similar results that seem to implicate He and two other members of the team. The Times uncovered a 2006 biography on He that lists her birthday as January 1, 1994. ", "\"According to online sports registration lists in China, half the team - He Kexin, Yang Yilin, Jiang Yuyuan - would be under age,\" the Times reported in July. The International Gymnastics Federation, however, has said that those gymnasts were eligible and that the ages on their passports were correct. Chinese gymnastics coaches defended their team Friday. \"Our athletes participating in these games all conform to the age regulations of the Olympics,\" said Huang Yubin, head coach of the men's and women's teams. \"Asians have different figures than people from the West, so that's what caused their suspicion,\" Huang said, referring to media inquiries. \"They shouldn't be suspicious.\" CNN's John Vause contributed to this story" ]

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[ "r geographic expansion and revenue concentration. As noted earlier by Dan, we announced the number of new wins with leading international and domestic carriers.\nThese initial returns come after investing in long sales cycles and will help us diversify our revenue into fast growth markets. Second, is our focus on building industry-leading products. Despite the early nature of the 5G market, Inseego continues to be on the forefront of product development. We recently added a significant number of products to our portfolio, including a suite of fixed wireless access points. We will continue to push the boundaries to better serve our customers' needs. Third is our focus on software platforms. We believe that a great deal of our future success will be driven by our ability to differentiate ourselves within our software platform, Inseego Manage, which was announced during the quarter.\nWe realized a while ago that it was critical to build a cloud-based management and security platform that allowed IT teams to manage our products in a ubiquitous computing environment, which leads me to our fourth and final point, penetration of the enterprise. With the growth of 5G comes new connectivity needs that require advanced solutions. And we believe that is a natural extension of our R&D DNA to build comprehensive platforms for the enterprise. Building the products is actually the easy part. And we made several announcements during the quarter. The real focus for us was expanding our relationships with the system integrators and other go-to-market partners and making sure we'll have the right value proposition for customers.\nOne major development for us was the repackaging of our full offering into recurring revenue pay-as-you-go model we call Inseego Select, which we believe will be commercially aligned with our enterprise customers. With that, let's review our results for the fourth quarter. Net revenue of $86.1 million, down 4.6% sequentially and up 64.5% year-over-year. It should be noted the quarter included several initial stocking orders from the previously mentioned new customers. Turning to our business units, fourth quarter, IoT and Mobile Solutions revenue was $72.1 million, down 6.8% from the third quarter. We saw relatively stable demand for our legacy 4G products and received a series of stocking orders for a group of new customers. We are encouraged by our 5G revenue mix, which trended up during the quarter.\n", "Our Inseego Manage software continues to grow rapidly with the number of subscriptions increasing 18% quarter-over-quarter and is up 231% year-over-year. Fourth quarter Enterprise SaaS solutions revenue was $14 million, up $8.3 million from the prior quarter. For this line of business, COVID restrictions continue to have an impact on our ability to install our solutions in the field, thus impacting some of our bookings. We continue to monitor all of the counties' COVID developments very closely and expect some improvements over the coming periods. Additionally, the South African rand, which is our largest FX exposure versus the US dollar has continued to trend positively during the quarter. At the beginning of the quarter, the dollar-rand exchange rate was 16.8 and we ended the quarter with the rate at 14.6.\nIt has been a roller coaster of a year for this exchange rate and thankfully we will no longer have this complication after we close the sale of the South African Ctrack business unit in the second quarter. We closed the quarter with a cash balance of $40 million. With our new products and customers coming to market we expect inventory to continue to increase and we will not have a sense of expected run rate from these new customers for several quarters. From this point forward, I'll focus on non-GAAP measures. A reconciliation from GAAP to non-GAAP is detailed in our earnings release. For the IoT and Mobile Business, gross margins were 25.6% for the quarter, up approximately 160 basis points compared to last quarter and up 880 basis points versus the same period a year ago.\nWe continue to work on a series of initi" ]

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[ "of compare/contrast and you expect that ecosystem around 5G is likely your most robust factor in fiscal '21 at this early juncture?\nSundaram Nagarajan -- President and Chief Executive Officer\nYeah, the 5G -- 5G activity -- the activity remains strong. Project activity remains strong. We get invited to lots of different projects where we're working on. But it is, at least for the moment, it has got a lot of promise, as we've talked about in the last couple of quarters, lots of promise, a big secular driver for this business, but not a needle mover at the moment for us.\nBut why we're excited about 5G is, not only just the handset. We really want to think about 5G in a broader terms around the base station infrastructure build-out, which is sorely behind. You really find there is a lot of advertisement and marketing around 5G. Really, the usefulness of any of that only depends on if you are near the cell tower. Remember, these are fairly weak signal, so you've got to really be almost on top of one of these things to experience this awesome technology that is coming. But eventually it will happen. So we are excited about the base station opportunity. It's slow to roll out.\nAs you know, there are a number of geopolitical competitive things going on around that that certainly strains it. We certainly like all the advanced components that are getting developed. So we really like that. Auto electronics will be a big player of 5G because they are going to get incorporated. IoT devices are going to be another big area where 5G is going to get incorporated. So lots of different nuances to 5G beyond just the handset. But the handset is probably what takes up most of the press time. So overall good activity; still continuing to participate in projects; just not a big needle mover at the moment for our Company.\nChristopher D. Glynn -- Oppenheimer & Co. -- Analyst\nYeah. We know it's not now, but it sounds like the timing visibility is kind of quixotic, I guess?\nSundaram Nagarajan -- President and Chief Executive Officer\nYeah, yeah, a good word to use.\nChristopher D. Glynn -- Oppenheimer & Co. -- Analyst\nThank you.\nSundaram Nagarajan -- President and Chief Executive Officer\nThank you, Chris.\nOperator\nNext question comes from Mike Halloran with Baird.\n", "Michael Patrick Halloran -- Robert W. Baird & Co. -- Analyst\nHey, good morning, everyone.\nSundaram Nagarajan -- President and Chief Executive Officer\nGood morning, Mike.\nMichael Patrick Halloran -- Robert W. Baird & Co. -- Analyst\nA couple of -- a couple of margin questions here. So on the ATS, if you think about the sequential margins going into the -- into the fiscal fourth quarter, same mix pressures -- that appears to be the assumption, but the same mix pressures that were there in the fiscal third quarter probably than just for the fiscal fourth quarter?\nJoseph P. Kelley -- Executive Vice President and Chief Financial Officer\nYeah. So I think similar -- in ATS, the mix pressure will be there, as assumed to be there, in the fourth quarter that was there in the third quarter based on some of the end market demand that Naga just reviewed.\nMichael Patrick Halloran -- Robert W. Baird & Co. -- Analyst\nThat makes sense. And then the inefficiencies you referenced for the industrial precision business. Maybe some context on those and how long do you think they linger?\nSundaram Nagarajan -- President and Chief Executive Officer\nYeah. So as our factories initially responded during the COVID crisis and our efforts to keep employees safe but continue to meet customer needs, we had significant factories -- while they remained open, we were precautionary quarantining several people. When you think about some of our clean rooms, we also had to put in social distancing and so our -- some of our manufacturing processes weren't as efficient from a direct labor standpoint. And so we've been working through that, getting the proper PP&E, the proper staffing and people coming back from quarantine. And so we're kind of working through those kinks. We've made progress, I would tell you, in the quarter -- from" ]

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[ "ovation, and in fact technology is at the heart of our innovation agenda. A great illustration is our AI powered Microsoft myWizard platform, which you've heard us mention many times previously, which differentiates our service delivery by improving clients' business performance with superior productivity and predictability. And we continue to leverage our unique innovation architecture which integrates our capabilities from research, ventures, labs, innovation centers and delivery centers.\nSecond is our powerful ecosystem relationships as the largest independent provider of technology services. While scale is certainly a factor, it's also our ability to co-innovate with our partners, delivering outcomes and value at speed in The New and looking to the Next New that differentiates us in the marketplace.\nAnd the final piece that underpins our technology leadership and is pervasive across everything we do is our unmatched industrialized global delivery capability which uniquely positions Accenture to deliver large-scale complex programs.\nLet me now switch gears and comment on our continued commitment to invest for long-term market leadership, including operating investments related to assets and solutions, talent and innovation as well as capital investments to acquire critical skills and capabilities in strategic high growth markets. So far this year, we have deployed approximately $1.1 billion in capital on acquisitions, with the majority focused in The New and especially Accenture Interactive, where we've completed nine deals so far this year. I'm particularly pleased with the acquisition of Droga5, by far our biggest of the year, which has a large New York-based creative agency that significantly strengthens our capabilities to design, build and run customer experiences that grow brands and businesses.\nBut before I hand it back to KC, I want to take a moment to acknowledge some of the external recognition we've received. Accenture rose to number 28 on BrandZ's list of Top 100 Most Valuable Brands and we also achieved our highest ranking ever on Forbes' list of the top global brands, and we had our highest ever double-digit increases in brand value on both list. I'm also very pleased that we were named for the first time in two fast company rankings for innovation: first, in the category of world's most innovative companies, and second, for world changing ideas. And finally, Accenture was ranked number one on Barron's new list of the Most Sustainable International Companies.\nBefore I close, I want to briefly mention that our CEO succession process is going very well, and as I said last quarter, we expect to complete the process by the end of this fiscal year.\n", "With that, I'll turn it over to KC to provide our updated business outlook. KC?\nKC McClure -- Chief Financial Officer\nThanks, David.\nLet me now turn to our business outlook. For the fourth quarter of fiscal 2019, we expect revenues to be in the range of $10.85 billion to $11.15 billion. This assumes the impact of FX will be about negative 2% compared to the fourth quarter of fiscal '18 and reflects an estimated 5% to 8% growth in local currency.\nFor the full fiscal year '19, based on how the rates have been trending over the last few weeks, we continue to assume the impact of FX on our results in US dollars will be approximately negative 3% compared to fiscal '18. For the full fiscal '19, we now expect our revenues to be in the range of 8% to 9% growth in local currency over fiscal '18. For operating margin, we now expect fiscal '19 to be 14.6%, a 20 basis point expansion over fiscal '18 results.\nWe continue to expect our annual effective tax rate to be in the range of 22.5% to 23.5%. This compares to an adjusted effective tax rate of 23% in fiscal '18. For earnings per share, we now expect full year diluted EPS for fiscal '19 to be in the range of $7.28 to $7.35 or 8% to 9% growth over adjusted fiscal '18 results.\nFor the full fiscal '19, we continue to expect operating cash flow to be in the range of $5.85 billion to $6.25 billion, property and equipment addition" ]

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[ " AFFO benefits to American Tower have largely come through fuel savings we anticipate over time that our yields on these investments will further expand as we are able to lengthen battery and generator replacement cycles. Having already expanded our lithium ion-powered site count from 4,500 in 2019 to 6,700 in 2020, we are targeting another 8,000 sites by the end of 2022 and recently signed a multimillion dollar bulk battery purchase agreement in Africa in support of this goal. Importantly, we believe that energy efficiency, the use of renewables, and sustainability in our broader sense can represent an important competitive advantage for us, not only from the flow-through to AFFO, but also the differentiation in service quality for our customers. We continue to view sustainability as a critical component of our company culture, and we'll be highlighting our continued progress in future sustainability reports, which I encourage all of you to read by the way.\nIn closing, our excitement around 5G on a global basis continues to grow. Consumers and enterprises are using more advanced devices for more things, resulting in consistent elevated growth in mobile data usage, which, in turn, strains existing wireless networks and necessitates incremental densification and network improvement. Considerable new spectrum is being deployed. New entrants in select markets are building greenfield networks, and our macro tower-oriented portfolio remains well positioned to capture a significant portion of wireless investment activity.\nIn addition, through our platform expansion strategy, we are focused on ensuring that the company benefits from the ongoing convergence of wireless and wireline and the associated expansion of virtualization in cloud-native applications throughout the network ecosystem. Importantly, as we optimize our core business and look for ways to further enhance our growth path in the broader digital infrastructure world, we are as committed as ever to driving profitability, sustainability, and recurring growth. We're energized by the future and are excited to be in a vibrant industry that is helping to connect the world. With that, let me turn the call over to Rod to go through our third quarter results and updated full year 2021 outlook.\nRod?\nRod Smith -- Executive Vice President, Chief Financial Officer, and Treasurer\nThanks, Tom, and thank you, everyone, for joining today's call. I hope you and your families are well. Q3 was another quarter of strong performance for us. And as you heard from Tom, we are as encouraged as ever by the technological trends that underpin our long-term growth potential.\n", "Before digging into the details of our results and raised outlook, I'd like to touch on a few highlights from the quarter. First, we closed on our strategic partnership agreements with CDPQ and Allianz, through which they purchased an aggregate of 48% of our ATC Europe business for a total consideration of around EUR 2.6 billion. In addition, we closed the remaining 4,000 Telxius communication sites in Germany back in August. With the transaction now fully closed and funded, our teams are working to rapidly integrate the assets, and we are already seeing encouraging activity on the portfolio.\nSecond, we continued to strengthen our balance sheet, raising roughly $3 billion in senior unsecured notes, including our euro offering earlier this month. Through our financing transactions, we have been able to maintain an attractive weighted average cost of debt while also continuing to extend our maturities. As a result of this activity, along with the benefit from a nonrecurring advance payment received from a tenant during the quarter, we finished Q3 with net leverage of 4.9 times. While we expect net leverage to increase back into the low 5 times range in the fourth quarter, we are right on track with our overall post-Telxius delevering path.\nAnd lastly, we saw another quarter of record services activity in the U.S. as carriers accelerated 5G-related projects. We view this as a leading indicator of strong levels of gross leasin" ]

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[ "es, specialty fixed income, and Asian equities not previously available in the U.S. market, and we are adding resources and capital to our distribution efforts in support of this evolving product mix and the forward opportunity. We continue to expand our suite of in-demand strategies, especially in alternatives, including both liquid and illiquid alternatives, which will further differentiate AMG and our affiliates going forward. Recently, on the product development side, we supported Pantheon, PFM, and Artemis in developing, seeding, and launching additional private markets in ESG strategies, again, consistent with our overall focus in these secular growth areas.\nPantheon has recently filed for a listed infrastructure vehicle which will further expand their investor base as they continue to build on their position as a leading provider of private market solutions. PFM has introduced a growth equity fund dedicated to healthcare innovation, leveraging their strong long-term track record of late-stage private markets investing within their flagship fund. Additionally, Artemis launched its positive future fund following the recent lift out of its global sustainable equities team. These are all great examples of how AMG's central strategic capabilities and seed capital can meaningfully support our affiliates in areas of increasing client demand.\nA consistent theme across all of our client conversations today is the desire for an increasing focus on sustainable and active stewardship. As I have said before, sustainable investing requires an active approach and our affiliates are benefiting as clients increasingly engage high-quality active managers to generate positive impact in communities worldwide. Simultaneously, investors are also managing through an environment that has become increasingly complex and difficult to forecast and we believe that active managers, especially independent firms, are best-positioned to deliver client outcomes not replicable through passive investing. AMG Affiliates are among the highest quality independent active managers in the world, and given their excellent performance across a number of highly differentiated in-demand strategies, AMG is well positioned to benefit from the evolving environment.\nFinally, the strength and momentum in our business that I've been describing over the past several quarters continues to build. Looking forward, we see significant opportunity for continued growth as we execute our strategy and increase our exposure to secular growth areas. We will do this by continuing to invest in new and existing affiliates as well as leveraging AMG's strategic capabilities. And through the consistent execution of this strategy, together with share repurchases, we will further compound our earnings and create significant shareholder value over time.\nAnd with that, I'll turn it over to Tom to review the details of the quarter.\n", "Tom Wojcik -- Chief Financial Officer\nThank you, Jay, and good morning, everyone. Our strong third quarter results demonstrate the unique attributes of AMG's model as we continue to invest for growth. Strong affiliate investment performance, organic growth, affiliate investments, and share repurchases combined to produce our third consecutive quarter of year-over-year earnings growth in excess of 20%, and AMG delivered net inflows as we continue to evolve our business mix toward secular growth areas. For the quarter, adjusted EBITDA of $228 million grew 26% year over year and economic earnings per share totaled $4.\nNet client cash inflows were $3.3 billion for the quarter and $6.8 billion, excluding certain quantitative strategies. These results do not include net inflows from Parnassus which closed in early October. Overall, net inflows were driven by strong contributions from fast-growing areas, including private markets, specialty-fixed income, wealth management, and ESG. Turning to business performance by asset class and excluding certain quantitative strategies, in alternatives, we continue to see very strong fundraising levels across our private market " ]

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[ "magine. In addition, much of this activity should enable our customers to be able to wirelessly transmit data at a lower cost per bit. The overall increase in our tenants resulting value proposition, driven by continued 4G and new 5G network deployments on our infrastructure, will, we expect, continue to increase our NOI yields and returns on invested capital. While we expect to have 4G-related infrastructure on our sites for years to come, we believe ubiquitous 5G deployments are also on our doorstep.\nWhat is interesting is that, in fact, each of the major carriers have initially deployed 5G in their own unique ways. Multiple spectrum bands have been and will continue to be deployed, spanning the range from high-band millimeter wave in cities to low band, like 600 megahertz, in rural areas and will ultimately be coupled with mid-band spectrum to support their customers' needs around suburbs and highway corridors. Importantly, we continue to believe that the majority of the sub-6 gigahertz spectrum deployments throughout the country will be on macro towers, and that mid-band spectrum will be a critical component of our tenants' 5G networks. We continue to expect mid-band deployments to accelerate beginning in the second half of this year as the new T-Mobile builds out more of its 2.5-gig spectrum. For the foreseeable future. As I mentioned, we also expect spending on 4G networks to continue, given that the migration of the user base from 4G to 5G will take a number of years. Bottom line, we believe that as a result, a tremendous amount of incrementally more complex equipment should end up on our towers across the U.S. over the next five to 10 years, allowing our business to continue to excel.\n", "As I mentioned, we believe that over the next several years, the cloud is going to get closer to the edge. We're already seeing this trend from the major hyperscalers, and as a result, continue to evaluate the opportunities that might be there for us. What will also be interesting is how the hyperscale and cloud service providers will interact and position themselves with the carriers. So as a result, we continue to explore trials and partnerships with a variety of different players, including hyperscalers, cloud service providers, carriers, data center companies and equipment suppliers to see just how our infrastructure may plug into this new environment. Using our existing set of assets on the edge data center front, we continue to learn about the rapidly evolving edge ecosystem through our ownership of the metro interconnect facility in Atlanta and initial deployments of several trial edge data facilities at our tower sites. At a high level, we continue to believe that as information generation and processing progressively moves to the network edge, particularly with respect to advanced IoT applications, there will be a greater need for lower latency through distributed storage and compute functionality in close proximity to both wireless and wireline end consumers.\nEdge compute offerings may eventually serve autonomous vehicle networks, interactive and immersive media delivery, cloud gaming and any number of other products and services where lower latency is a must and/or data needs to be closer to the consumer machine, where we believe the opportunity for us can truly scale. And while the potential for a scaled mobile edge solution is likely several years away, we are seeing initial positive indications of customer interest in our assets and are also having numerous conversations with a number of parties that are likely to play a significant role in the edge going forward. One such example is with Microsoft through their Azure Edge Zones program, where we are now a named partner. As time goes on, we are hopeful that other partnerships will develop to help us accelerate the development of the edge data model. On the indoor connectivity side, we continue to explore ways to leverage carrier-grade Wi-Fi, 4G, 5G and CBRS spectrum to create converged networks.\nThese targeted neutral host solutions can make sense in a much broader arr" ]

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[ "ex with Goldman Sachs. Your line is now open.\nBrian Essex -- Goldman Sachs -- Analyst\nHi, good afternoon, and thank you for taking the question and congrats on a great set of results. Maybe, Ken, if I could ask, you've got a number of different product cycles ahead of you this year. You've got NP7, you've already talked about SD-WAN, you've got hyperscale penetration and potential exposure to 5G. Can you maybe talk about the contribution from each of those that's embedded in your guidance and what are you seeing currently in the market and what's yet to come?\nKen Xie -- Founder, Chairman of the Board, and Chief Executive Officer\nI think for NP7, is still in the ramp up stage. We continue to build new hardware platform with NP7, especially for the high-end and middle range. The FortiOS 7.0 is also a growth driver, but we are in the beta three process for an output [Phonetic] this quarter. That's will help in contribute to the additional growth, especially in the zero-trust setting environment and also the infrastructure security later this year, but it's -- so far, I see that the product grows like a 21%, it's a lot of contribution from whether the SD-WAN or because security-driven networking and also in the -- probably like one to two years ago when we released the SoC4, so that's a little bit toward the low end side of the FortiGate, which you can see nicely growth over there, and also the team doing great job in the sales and marketing.\nBrian Essex -- Goldman Sachs -- Analyst\nAnd the other exchange.\nKeith Jensen -- Chief Financial Officer\nYeah, I think the guidance setting process is not so much on individual products or even in some cases individual use cases. We identify 15 or 20 different use cases for firewalls. It's more about what we see in terms of market opportunity, what we see in pipeline. Then maybe by geography or deal opportunity or what have you is some of the key inputs that go into it. But I wouldn't really think of it is -- I certainly would not want you to walk away from the conversation thinking that the guidance that we provided is dependent upon some degree of 5G or SaaS or something that's above and beyond.\nBrian Essex -- Goldman Sachs -- Analyst\n", "Got it, that's helpful. And maybe just a quick follow-up. Nice large deal activity, certainly more than we picked up in the channel. Maybe if you could talk a little bit about the competitive dynamics on the large end of your market scale. Where you're seeing that business come from? How much is displacement and how much is expansion of I guess existing customer opportunity?\nKen Xie -- Founder, Chairman of the Board, and Chief Executive Officer\nYeah, definitely whether from our customer or our partner, they see starting to get a much better, more competitive and lot of advantage, using the Fortinet product, whether the FortiGate leverage new ASIC, the new OS with much more additional function compared to competitor. So that's where like increased the gap, we have been ahead of competitor now and that's likely helping to drive, to accelerate the product revenue growth. And on the other side, we have a little bit different approach for whether the SaaS or Cloud endpoint. So we more emphasize is integrate together automate together, especially in the OS level, that's none of our competitors have that. And also most of this also organically internally developed, designed to work together, automate together from day one. And that's also different from competitor come from acquisition, which are more difficult to integrate and also difficult to manage long-term. So we do feel we have a more advantage in the marketplace right now.\nBrian Essex -- Goldman Sachs -- Analyst\nGot it. Very helpful. Thank you again. I appreciate it.\nKen Xie -- Founder, Chairman of the Board, and Chief Executive Officer\nThank you, Brian.\nOperator\nThank you. Our next question comes from the line of Shaul Eyal with Oppenheimer. Your line is now open.\nShaul Eyal -- Oppenheimer -- Analyst\nThank you. Good afternoon, guys. Congrats on the ongoing strong execution levels. I want to start with a" ]

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