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What is the expected reduction in global office facility investments in 2020 compared with 2019, and what is the reason for this reduction
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. Questions and Answers: Operator Thank you. [Operator Instructions] Our first question comes from Eric Sheridan from UBS. Your line is now open. Eric Sheridan -- UBS -- Analyst Thanks 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. Sundar Pichai -- Chief Executive Officer 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. Ruth Porat -- Chief Financial Officer And 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. As 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
[ "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" ]
2
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1
What is the total number of 5G devices that are being released right now
illimeter wave offerings from our customers for the past few years. So 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. If 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. So it sort of gives you maybe a framing on where we are. It's still very early days. Mehdi Hosseini -- Susquehanna International Group -- Analyst Thank you. Operator Your next question will come from Samik Chatterjee of J.P. Morgan. Please go ahead. Joe Cardoso -- J.P. Morgan -- Analyst Hi. 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. You 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. Ron Nersesian -- Chairman, President, and Chief Executive Officer Hi, 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. 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. We'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. Operator Your next question will come from John Pitzer of Credit Suisse. Please go ahead. John Pitzer -- Credit Suisse -- Analyst Yeah, 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. As 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? Satish Dhanasekaran -- Chief Operating Officer Yeah, 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. We 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
[ "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" ]
2
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1
What is the increase in the organic growth outlook for 2021 in terms of HTU shipments
ndars. To conclude, we've had a strong start to the year and look forward with confidence despite the continued uncertainty on the operating environment due to COVID. This is the same concluding slide I presented at Investor Day in February, as I believe our start to 2021 demonstrates all of the key elements of our longer-term trajectory. Through IQOS we are building a business with multiple levers to deliver superior and sustainable growth over the coming year through improved volume dynamic, excellent topline growth, strong margin expansion and fast-growing earnings. Moreover, while every adult smoker who switches to IQOS is good for our business, it is also a clear positive for our impact on society and public health. We manage our transformation with care and responsibility for our stakeholders, guided by our sustainability materiality framework to maximize our positive impact across our Tier one ESG and product areas. This is essential for the sustainability of our business, and for delivering superior returns for shareholders over the long term. The increase in our organic growth outlook for 2021 is another step on this journey, also putting us nicely on track to achieve our 2023 financial and HTU shipment targets. Thank you. I am now more than happy to answer your questions. Questions and Answers: Operator [Operator Instructions] Our first question comes from Vivien Azer of Cowen. Vivien Azer -- Cowen -- Analyst Good morning. Emmanuel Babeau -- Chief Financial Officer Good morning, Vivien. Vivien Azer -- Cowen -- Analyst So given some of the headlines coming out of the US yesterday, it might be helpful, please, for my first question, if you could just level-set on IQOS's designation in your international markets in terms of the type of tobacco product from the tax perspective. Thanks. Emmanuel Babeau -- Chief Financial Officer So, I guess Vivien, if I understand, well, your question is, how is our heat-not-burn offer and product classified versus combustible cigarette in our non-US geographies. Correct? Vivien Azer -- Cowen -- Analyst That's correct. Yes, please. Emmanuel Babeau -- Chief Financial Officer Right. So I'm not sure that I'm going to be able to give one general answer because the classification can be different from one country to the other. I would say, today, probably the fact that the excise duty applied to our IQOS product is differentiated in the vast majority of the markets show that the treatment is differentiated, so the product is addressed already in a distinct manner on that particular element recognizing that it's a different product with a different feature than the combustible cigarettes. So we are, of course, going to see some situation that can be different from one market to the other, we are certainly welcoming a regulation that will further clarify the fact that these heat-not-burn products are clearly different and a better alternative to combustible in the future and as I think I mentioned, we see the regulation progressing nicely country after country to take that into account, have been taking a few example during my previous speech and we expect that to continue. So, we expect more and more government regulated to further clarify distinction between heat-not-burn and other reduced risk products and combustible cigarettes and come as well with different regulation and as you know, we are calling for a differentiated approach on two items, certainly on the way we can communicate on these better alternatives and better product than the combustible cigarette. And also of course on taxation to make sure that we have an incentive to push the smokers to this better alternative for their health. Vivien Azer -- Cowen -- Analyst Certainly. That's helpful. Thank you very much. And then my follow-up, if you could just provide your assessment of the risk, other countries potentially implementing a nicotine cap on combustible cigarettes. Thank you. Emmanuel Babeau -- Chief Financial Officer Well, I think that is something that as you rightly say, Vivien, is not implemented anywhere today, and
[ "ndars.\nTo conclude, we've had a strong start to the year and look forward with confidence despite the continued uncertainty on the operating environment due to COVID. This is the same concluding slide I presented at Investor Day in February, as I believe our start to 2021 demonstrates all of the key elements of our longer-term trajectory. Through IQOS we are building a business with multiple levers to deliver superior and sustainable growth over the coming year through improved volume dynamic, excellent topline growth, strong margin expansion and fast-growing earnings. Moreover, while every adult smoker who switches to IQOS is good for our business, it is also a clear positive for our impact on society and public health. We manage our transformation with care and responsibility for our stakeholders, guided by our sustainability materiality framework to maximize our positive impact across our Tier one ESG and product areas. This is essential for the sustainability of our business, and for delivering superior returns for shareholders over the long term. The increase in our organic growth outlook for 2021 is another step on this journey, also putting us nicely on track to achieve our 2023 financial and HTU shipment targets.\nThank you. I am now more than happy to answer your questions.\nQuestions and Answers:\nOperator\n[Operator Instructions] Our first question comes from Vivien Azer of Cowen.\nVivien Azer -- Cowen -- Analyst\nGood morning.\nEmmanuel Babeau -- Chief Financial Officer\nGood morning, Vivien.\nVivien Azer -- Cowen -- Analyst\nSo given some of the headlines coming out of the US yesterday, it might be helpful, please, for my first question, if you could just level-set on IQOS's designation in your international markets in terms of the type of tobacco product from the tax perspective. Thanks.\nEmmanuel Babeau -- Chief Financial Officer\nSo, I guess Vivien, if I understand, well, your question is, how is our heat-not-burn offer and product classified versus combustible cigarette in our non-US geographies. Correct?\nVivien Azer -- Cowen -- Analyst\nThat's correct. Yes, please.\nEmmanuel Babeau -- Chief Financial Officer\n", "Right. So I'm not sure that I'm going to be able to give one general answer because the classification can be different from one country to the other. I would say, today, probably the fact that the excise duty applied to our IQOS product is differentiated in the vast majority of the markets show that the treatment is differentiated, so the product is addressed already in a distinct manner on that particular element recognizing that it's a different product with a different feature than the combustible cigarettes. So we are, of course, going to see some situation that can be different from one market to the other, we are certainly welcoming a regulation that will further clarify the fact that these heat-not-burn products are clearly different and a better alternative to combustible in the future and as I think I mentioned, we see the regulation progressing nicely country after country to take that into account, have been taking a few example during my previous speech and we expect that to continue.\nSo, we expect more and more government regulated to further clarify distinction between heat-not-burn and other reduced risk products and combustible cigarettes and come as well with different regulation and as you know, we are calling for a differentiated approach on two items, certainly on the way we can communicate on these better alternatives and better product than the combustible cigarette. And also of course on taxation to make sure that we have an incentive to push the smokers to this better alternative for their health.\nVivien Azer -- Cowen -- Analyst\nCertainly. That's helpful. Thank you very much. And then my follow-up, if you could just provide your assessment of the risk, other countries potentially implementing a nicotine cap on combustible cigarettes. Thank you.\nEmmanuel Babeau -- Chief Financial Officer\nWell, I think that is something that as you rightly say, Vivien, is not implemented anywhere today, and" ]
2
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1
What is the company's revenue for 2021-Q2
rs involved in seeing that getting realized. So I think China has the ability to move very fast once the policy framework is in place. Amit Dayal -- H.C. Wainwright & Co. -- Analyst Understood. And then on the stationary power side, right, it seems like that's a market that is maybe ready to go now with fuel cells, etc., with micro-grid adoption and all of the other sort of applications around stationary power. What are we doing from a business development perspective to sort of get a bigger share in that space? Even from an R&D perspective, what kind of resources are we sort of applying to maybe create a bigger presence on the stationary power side? Randall MacEwen -- Chief Executive Officer Yes. So good question. And really, we are, of course, seeing leverage off of the work we're doing in our technology and products, including the ability to use those products in a number of stationary power market applications. We have increased our business development activities globally. So in China, in Europe, in North America and in other markets as well, we've brought on additional resources. And there's a lot of active discussions underway with different companies in the value chain. And some of them quite large-scale companies that are looking to really game-change decarbonization and stationary power market segments. So still too early for us to comment on the progress we're making there on the business development side, but we hope to be able to provide more visibility later this year. But we're making the investments we need to, both on the technology as well as on customer engagement to move the yardsticks. Amit Dayal -- H.C. Wainwright & Co. -- Analyst Understood. That's all I have. Thank you Randy. Randall MacEwen -- Chief Executive Officer Thank you. Operator The next question comes from Craig Shere with Tuohy Brothers. Please go ahead. Craig Shere -- Tuohy Brothers -- Analyst Hi, thanks for the taking questions. Randy, I apologize. I'm not sure I reconcile answers to your couple of questions regarding hydrogen fuel supply. It sounds like the response to one was that, we need to leave this up to the big boys, the integrated energy conglomerates, industrial gas companies that will be the main supplier and relied upon. But in another question, it sounded like some turnkey Ballard electrolyzer application opportunities could have meaningful kind of turnkey, all quick adoption opportunities for end customers, and of course, some of that related to the Fusion-Fuel and other opportunities. Can you kind of help me understand how to triangulate all this? Randall MacEwen -- Chief Executive Officer Yes, Craig, great question, and we should be very clear about this. There's the difference between designing and manufacturing equipment that you sell versus being a supplier of hydrogen. And what we were describing before was the opportunity for Ballard, particularly with our PEM fuel cell capabilities to potentially look at PEM electrolyzer manufacturing downstream. So not being a supplier of hydrogen, but a supplier of electrolyzer equipment. So we don't discount that opportunity. That's certainly an opportunity that we have a high level of interest in, but we wouldn't be looking to sell hydrogen as a captive supplier as an energy company. Is that helpful? Craig Shere -- Tuohy Brothers -- Analyst That's helpful. But nonetheless, if the end user buys the fuel cell equipment and buys the electrolyzers, they have all they need to make the package work, right? Randall MacEwen -- Chief Executive Officer Right. So what you'll see typically is end users like a transit authority, would say to Shell, we'd like to have a fueling station built. Shell will then go to an electrolyzer company if they want on-site hydrogen production by the electrolyzer, put in place the compression and chillers and storage and dispensing equipment, own and operate that asset and sell the hydrogen fuel to that transit operator. So we would be OK being a provider of electrolyzer equipment in that model I just described, but we wouldn't be in the role of Shell wher
[ "rs involved in seeing that getting realized.\nSo I think China has the ability to move very fast once the policy framework is in place.\nAmit Dayal -- H.C. Wainwright & Co. -- Analyst\nUnderstood. And then on the stationary power side, right, it seems like that's a market that is maybe ready to go now with fuel cells, etc., with micro-grid adoption and all of the other sort of applications around stationary power. What are we doing from a business development perspective to sort of get a bigger share in that space? Even from an R&D perspective, what kind of resources are we sort of applying to maybe create a bigger presence on the stationary power side?\nRandall MacEwen -- Chief Executive Officer\nYes. So good question. And really, we are, of course, seeing leverage off of the work we're doing in our technology and products, including the ability to use those products in a number of stationary power market applications. We have increased our business development activities globally.\nSo in China, in Europe, in North America and in other markets as well, we've brought on additional resources. And there's a lot of active discussions underway with different companies in the value chain. And some of them quite large-scale companies that are looking to really game-change decarbonization and stationary power market segments. So still too early for us to comment on the progress we're making there on the business development side, but we hope to be able to provide more visibility later this year.\nBut we're making the investments we need to, both on the technology as well as on customer engagement to move the yardsticks.\nAmit Dayal -- H.C. Wainwright & Co. -- Analyst\nUnderstood. That's all I have. Thank you Randy.\nRandall MacEwen -- Chief Executive Officer\nThank you.\nOperator\nThe next question comes from Craig Shere with Tuohy Brothers. Please go ahead.\nCraig Shere -- Tuohy Brothers -- Analyst\nHi, thanks for the taking questions. Randy, I apologize. I'm not sure I reconcile answers to your couple of questions regarding hydrogen fuel supply. It sounds like the response to one was that, we need to leave this up to the big boys, the integrated energy conglomerates, industrial gas companies that will be the main supplier and relied upon.\n", "But in another question, it sounded like some turnkey Ballard electrolyzer application opportunities could have meaningful kind of turnkey, all quick adoption opportunities for end customers, and of course, some of that related to the Fusion-Fuel and other opportunities. Can you kind of help me understand how to triangulate all this?\nRandall MacEwen -- Chief Executive Officer\nYes, Craig, great question, and we should be very clear about this. There's the difference between designing and manufacturing equipment that you sell versus being a supplier of hydrogen. And what we were describing before was the opportunity for Ballard, particularly with our PEM fuel cell capabilities to potentially look at PEM electrolyzer manufacturing downstream. So not being a supplier of hydrogen, but a supplier of electrolyzer equipment.\nSo we don't discount that opportunity. That's certainly an opportunity that we have a high level of interest in, but we wouldn't be looking to sell hydrogen as a captive supplier as an energy company. Is that helpful?\nCraig Shere -- Tuohy Brothers -- Analyst\nThat's helpful. But nonetheless, if the end user buys the fuel cell equipment and buys the electrolyzers, they have all they need to make the package work, right?\nRandall MacEwen -- Chief Executive Officer\nRight. So what you'll see typically is end users like a transit authority, would say to Shell, we'd like to have a fueling station built. Shell will then go to an electrolyzer company if they want on-site hydrogen production by the electrolyzer, put in place the compression and chillers and storage and dispensing equipment, own and operate that asset and sell the hydrogen fuel to that transit operator. So we would be OK being a provider of electrolyzer equipment in that model I just described, but we wouldn't be in the role of Shell wher" ]
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What was the revenue generated by the Energy Systems segment in the 2021-Q3 quarter
ready. There seems to be pent-up demand which should accelerate near-term growth. Our largest segment, Energy Systems, has struggled in recent quarters from slow broadband orders. The MSOs had focused on increasing node capacity for their work-from-home demand. Those MSOs have now resumed strong orders for our products, which increased their networks power capacity. Even more encouraging, MSO participation in recent wireless spectrum auctions and their enunciation of their intention to carry their 5G and 4G traffic on their own networks validates the broadband growth assumptions of our Alpha acquisition strategy. Telecom 5G growth is also accelerating in the Americas, confirming their commitment to invest in their networks to increase capacity and reliability. Our 5G small cell powering project collaboration with Corning is progressing even better than we had hoped. In this quarter, we believe the network investment in 5G has, for the first time, surpassed the existing 4G network spend. It is also encouraging to see data center markets improving. In addition to our traditional businesses, renewable energy markets continue to expand with incredible opportunities for storage applications. The new administration has clearly focused on this emerging market. We plan to respond by updating our product offering using the same modular approach from our other lines of business. We will share more specifics with you on how we will participate in renewable energy storage and EV charging in coming calls. When you consider forklifts, we are currently the leader in charging electric vehicles globally, and this technology is easily transferred. Lastly, we are beginning to see the positive impact of the global alignment of the Energy Systems organization as we leverage regional expertise and key account development. Please turn to slide four. Our motive power business showed considerable improvement in the period compared to the second quarter, delivering higher sequential revenue and operating earnings. Our order rates have surpassed the pre-COVID levels of a year ago despite sporadic pandemic-related restrictions, particularly in EMEA. The Hagen, Germany restructuring is ahead of schedule and forecasted to beat its budget. Although those restructuring benefits have not yet impacted our earnings, they will grow in magnitude throughout calendar year 2021, reaching nearly a $20 million annual run rate by the end of fiscal year 2022. Another exciting development is the launch of our NexSys iON lithium motive power batteries. Several OEMs continue to accelerate their adoption of this chemistry, and our sales team is focusing efforts for NexSys iON products on the portions of the market with the most demanding duty cycles. Please turn to slide five. The third segment of our business, Specialty, maintained its positive momentum with another strong quarter, which was slowed only by the ongoing impact of COVID on our capacity ramp, thereby delaying our ability to meet surging demand. Our transportation backlog continued to grow as we added a significant number of customers to the ODYSSEY channels. We currently are working with nearly every major player in the aftermarket distribution channel, along with many key truck OEMs and fleet operators. TPPL gained further traction in the quarter. The high-speed line is up and running, and we are adding a second shift to our Springfield plant and bringing on additional oxide and pasting capacity. We're also encouraged by several new awards in our aerospace and defense business. Before wrapping up, I'd like to take a minute to talk about some exciting advancements we've made on the technology front. We mentioned our lithium launch for motive power. Our customers have begun to order our new NexSys iON products, and initial customer feedback is very positive. We have also achieved our first OEM approval and continue to work with other material handling manufacturers. The demand for fully integrated products has significantly increased for our Energy Systems group. To ensure necessary product development k
[ " ready. There seems to be pent-up demand which should accelerate near-term growth. Our largest segment, Energy Systems, has struggled in recent quarters from slow broadband orders. The MSOs had focused on increasing node capacity for their work-from-home demand. Those MSOs have now resumed strong orders for our products, which increased their networks power capacity. Even more encouraging, MSO participation in recent wireless spectrum auctions and their enunciation of their intention to carry their 5G and 4G traffic on their own networks validates the broadband growth assumptions of our Alpha acquisition strategy. Telecom 5G growth is also accelerating in the Americas, confirming their commitment to invest in their networks to increase capacity and reliability. Our 5G small cell powering project collaboration with Corning is progressing even better than we had hoped.\nIn this quarter, we believe the network investment in 5G has, for the first time, surpassed the existing 4G network spend. It is also encouraging to see data center markets improving. In addition to our traditional businesses, renewable energy markets continue to expand with incredible opportunities for storage applications. The new administration has clearly focused on this emerging market. We plan to respond by updating our product offering using the same modular approach from our other lines of business. We will share more specifics with you on how we will participate in renewable energy storage and EV charging in coming calls. When you consider forklifts, we are currently the leader in charging electric vehicles globally, and this technology is easily transferred. Lastly, we are beginning to see the positive impact of the global alignment of the Energy Systems organization as we leverage regional expertise and key account development. Please turn to slide four. Our motive power business showed considerable improvement in the period compared to the second quarter, delivering higher sequential revenue and operating earnings.\n", "Our order rates have surpassed the pre-COVID levels of a year ago despite sporadic pandemic-related restrictions, particularly in EMEA. The Hagen, Germany restructuring is ahead of schedule and forecasted to beat its budget. Although those restructuring benefits have not yet impacted our earnings, they will grow in magnitude throughout calendar year 2021, reaching nearly a $20 million annual run rate by the end of fiscal year 2022. Another exciting development is the launch of our NexSys iON lithium motive power batteries. Several OEMs continue to accelerate their adoption of this chemistry, and our sales team is focusing efforts for NexSys iON products on the portions of the market with the most demanding duty cycles. Please turn to slide five. The third segment of our business, Specialty, maintained its positive momentum with another strong quarter, which was slowed only by the ongoing impact of COVID on our capacity ramp, thereby delaying our ability to meet surging demand. Our transportation backlog continued to grow as we added a significant number of customers to the ODYSSEY channels. We currently are working with nearly every major player in the aftermarket distribution channel, along with many key truck OEMs and fleet operators. TPPL gained further traction in the quarter.\nThe high-speed line is up and running, and we are adding a second shift to our Springfield plant and bringing on additional oxide and pasting capacity. We're also encouraged by several new awards in our aerospace and defense business. Before wrapping up, I'd like to take a minute to talk about some exciting advancements we've made on the technology front. We mentioned our lithium launch for motive power. Our customers have begun to order our new NexSys iON products, and initial customer feedback is very positive. We have also achieved our first OEM approval and continue to work with other material handling manufacturers. The demand for fully integrated products has significantly increased for our Energy Systems group. To ensure necessary product development k" ]
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What is the company's revenue growth rate in the software product line in the next 12 months
ollar terms, overall, mid-single digits. I call it a slow-growth industry. Within it, however, it still evolves new generation of products constantly. That's the unusual, unique thing about semiconductors. It keeps evolving. Not disruptive, much as people like to say they are disruptive. My view is evolutionary. But that evolutionary creates new opportunities for basically selling a better product, a more valuable product to the same customer for the similar application, which the customer can then monetize back on their own. And that's really all it is. And what we are doing here in wireless is no different. And there is something also very interesting. Every product we sell in wireless is, in fact, a nonstandard product. It is customized. It is customized for the needs -- for the unique needs and particular requirements of that particular customer. That's what makes us so successful, and that's what makes the partnership so sustainable. We develop technology in the form of products that we do, whether it's an RF, with FBAR, front-end module, or whether it's pure silicon with some SDK -- a lot of SDK software, where some unique performance mixed signal, analog product. All of which we do to this customer, we do it to meet their particular requirements which allow their products to be at a level that's very differentiated from their own space -- in the competitive space they are in. And that's what makes it very unique, and that's what makes this thing keep going. But we're not looking for -- in any end market we are in, in any product line we are in, for high growth. High growth in semiconductor comes in spurts and do not last. If anybody tells you otherwise, please don't believe it because it has never happened. Edward Snyder -- Charter Equity Research -- Analyst Thank you. Operator Thank you. And we do have time for one final question from Vijay Rakesh with Mizuho. Please go ahead. Vijay Rakesh -- Mizuho Securities -- Analyst Yes. Hey, Hock, just a question on the networking side. Obviously, very strong growth, up 33% with the Tomahawk and DPU, I guess. What do you see the long-term growth there, meaning if you look at the next 12 to 24 months on the networking side? I had a follow-up. Thanks. Hock Tan -- President and Chief Executive Officer OK. The next 12 months is pretty good. We have visibility, and we kind of indicated that in our answers. Twenty-four months, harder for me to tell you. If you ask me what do you think over the next 10 years, I'll tell you what it is, mid- to high single digits. And because that's -- it's consistent inventory. There is no segment, don't believe anybody telling you otherwise, that will have a sustainable growth rate in this space. It's share changes maybe. So -- but next 12 months, very good growth rate is what I indicated. Vijay Rakesh -- Mizuho Securities -- Analyst Thanks. And one last question. On the software side, obviously, since December 8 when you announced the big buyback. Obviously, software valuations have become much more attractive in the last -- might be down 30%, 40% there. But do you have a target in mind as to what you think that software business should be, like 24%, 25% of revenues now? Are you looking to build it up to half of your business? Or is there a long-term target that you're putting out there? Thanks. Hock Tan -- President and Chief Executive Officer Hate to tell you, I don't have a strategic plan here. My plan are all a numbers plan. It's -- our strategy in acquisitions and growing this entire Broadcom platform is more about locating, identifying very, very strong assets out there and -- which are actionable, and then making a deal and buying them and integrating in our platform. They got to meet our requirements of quality of the assets, of the product -- of the business model. To some extent, the product characteristics being very mission critical. And then after that comes the price. For us, after that is the price. Because you'll recall, the way we run those software businesses tends to be different usually from the way the party we buy from runs
[ "ollar terms, overall, mid-single digits. I call it a slow-growth industry. Within it, however, it still evolves new generation of products constantly.\nThat's the unusual, unique thing about semiconductors. It keeps evolving. Not disruptive, much as people like to say they are disruptive. My view is evolutionary.\nBut that evolutionary creates new opportunities for basically selling a better product, a more valuable product to the same customer for the similar application, which the customer can then monetize back on their own. And that's really all it is. And what we are doing here in wireless is no different. And there is something also very interesting.\nEvery product we sell in wireless is, in fact, a nonstandard product. It is customized. It is customized for the needs -- for the unique needs and particular requirements of that particular customer. That's what makes us so successful, and that's what makes the partnership so sustainable.\nWe develop technology in the form of products that we do, whether it's an RF, with FBAR, front-end module, or whether it's pure silicon with some SDK -- a lot of SDK software, where some unique performance mixed signal, analog product. All of which we do to this customer, we do it to meet their particular requirements which allow their products to be at a level that's very differentiated from their own space -- in the competitive space they are in. And that's what makes it very unique, and that's what makes this thing keep going. But we're not looking for -- in any end market we are in, in any product line we are in, for high growth.\nHigh growth in semiconductor comes in spurts and do not last. If anybody tells you otherwise, please don't believe it because it has never happened.\nEdward Snyder -- Charter Equity Research -- Analyst\nThank you.\nOperator\nThank you. And we do have time for one final question from Vijay Rakesh with Mizuho. Please go ahead.\nVijay Rakesh -- Mizuho Securities -- Analyst\nYes. Hey, Hock, just a question on the networking side. Obviously, very strong growth, up 33% with the Tomahawk and DPU, I guess. What do you see the long-term growth there, meaning if you look at the next 12 to 24 months on the networking side? I had a follow-up.\nThanks.\nHock Tan -- President and Chief Executive Officer\n", "OK. The next 12 months is pretty good. We have visibility, and we kind of indicated that in our answers. Twenty-four months, harder for me to tell you.\nIf you ask me what do you think over the next 10 years, I'll tell you what it is, mid- to high single digits. And because that's -- it's consistent inventory. There is no segment, don't believe anybody telling you otherwise, that will have a sustainable growth rate in this space. It's share changes maybe.\nSo -- but next 12 months, very good growth rate is what I indicated.\nVijay Rakesh -- Mizuho Securities -- Analyst\nThanks. And one last question. On the software side, obviously, since December 8 when you announced the big buyback. Obviously, software valuations have become much more attractive in the last -- might be down 30%, 40% there.\nBut do you have a target in mind as to what you think that software business should be, like 24%, 25% of revenues now? Are you looking to build it up to half of your business? Or is there a long-term target that you're putting out there? Thanks.\nHock Tan -- President and Chief Executive Officer\nHate to tell you, I don't have a strategic plan here. My plan are all a numbers plan. It's -- our strategy in acquisitions and growing this entire Broadcom platform is more about locating, identifying very, very strong assets out there and -- which are actionable, and then making a deal and buying them and integrating in our platform. They got to meet our requirements of quality of the assets, of the product -- of the business model.\nTo some extent, the product characteristics being very mission critical. And then after that comes the price. For us, after that is the price. Because you'll recall, the way we run those software businesses tends to be different usually from the way the party we buy from runs " ]
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Who is Sal Dimiceli?
Atlanta (CNN) -- Jonathan Hanson and Katina Wright are determined to give their infant daughter a bright and stable future despite the cloud of uncertainty they face after years without steady work. Once successful real estate agents making six figures, Hanson and Wright are now living on the poverty line. "We made some good money," Hanson said. "But with new regulations in real estate and different laws and just the amount of foreclosures on the market, it literally took our business away." The last few years have been a downward spiral, says the Atlanta couple, who have been living off their savings. They've sold jewelry and cars, and now they're trying to sell their home to survive. Every day, they are faced with a tough decision. "You have to pick and choose what you want to do," Hanson said. "It's either eat that day or pay a bill." They're not alone. Millions of American families have slipped into what the U.S. Census Bureau defines as poor. About 46.2 million people are considered to be living in poverty, 2.6 million more than last year. "Those that are in dire need, they'll sell all their personal belongings to survive," said Sal Dimiceli, one of the top 10 CNN Heroes of 2011. Through his weekly newspaper column, Dimiceli hears from dozens of people each week who are facing hard times. And for decades, he has made every effort to help them get back on their feet. Through his nonprofit, The Time Is Now To Help, Dimiceli has provided about 500 people a year with food, rent, utilities and other necessities. "We get them back on a track (so) that ... their pride is given back to them," Dimiceli said this year. "They can catch up." There haven't been this many Americans living in poverty since 1993, according to the Census Bureau. More than 15% of the population is now considered poor. The rate is 22% for children, meaning at least one of every five U.S. kids is living in poverty. "If you qualify as being in poverty today, then you're really in deep poverty," said Mark Bergel, founder and executive director of A Wider Circle, a Maryland-based charity that provides furniture and other basic necessities to needy families. Bergel told CNN's Lisa Sylvester that the numbers used to define poverty today are extremely low and "based on an outdated formula from the '60s." The Census Bureau defines an individual as poor if they make less than $11,139 a year. The dollar amount rises for every member added to the household. For example, the average family of four is considered poor if they make less than $22,314. For a family of three like Hanson, Wright and their daughter, the threshold is just a little more than $17,000. "There's a lot of people suffering," said Karen Lee, a financial planner and author of several books, including "Simple Steps to Help People Get Unstuck Financially." Lee said it's important for people who've never faced poverty to keep a positive outlook and believe that things can get better. "I have seen people go from riches to rags to riches to rags," she said. "You can rebuild, and you can completely change careers and rebuild." That's what Hanson and Wright are doing. Hanson is betting on a new business he started: building security cages for air conditioners to prevent copper theft. Wright is teaching herself Web development. "I literally threw my Rolodex away, because it was all real-estate-related," she said. "It's no longer of any use to me. So being able to let go is going to be a person's biggest advantage."
[ "Atlanta (CNN) -- Jonathan Hanson and Katina Wright are determined to give their infant daughter a bright and stable future despite the cloud of uncertainty they face after years without steady work. Once successful real estate agents making six figures, Hanson and Wright are now living on the poverty line. \"We made some good money,\" Hanson said. \"But with new regulations in real estate and different laws and just the amount of foreclosures on the market, it literally took our business away.\" The last few years have been a downward spiral, says the Atlanta couple, who have been living off their savings. They've sold jewelry and cars, and now they're trying to sell their home to survive. Every day, they are faced with a tough decision. \"You have to pick and choose what you want to do,\" Hanson said. \"It's either eat that day or pay a bill.\" They're not alone. Millions of American families have slipped into what the U.S. Census Bureau defines as poor. About 46.2 million people are considered to be living in poverty, 2.6 million more than last year. \"Those that are in dire need, they'll sell all their personal belongings to survive,\" said Sal Dimiceli, one of the top 10 CNN Heroes of 2011. Through his weekly newspaper column, Dimiceli hears from dozens of people each week who are facing hard times. And for decades, he has made every effort to help them get back on their feet. Through his nonprofit, The Time Is Now To Help, Dimiceli has provided about 500 people a year with food, rent, utilities and other necessities. \"We get them back on a track (so) that ... their pride is given back to them,\" Dimiceli said this year. \"They can catch up.\" There haven't been this many Americans living in poverty since 1993, according to the Census Bureau. More than 15% of the population is now considered poor. The rate is 22% for children, meaning at least one of every five U.S. kids is living in poverty. \"If you qualify as being in poverty today, then you're really in deep poverty,\" said Mark Bergel, founder and executive director of A Wider Circle, a Maryland-based charity that provides furniture and other basic necessities to needy families. Bergel told CNN's Lisa Sylvester that the numbers used to define poverty today are extremely low and \"based on an outdated formula from the '60s.\" ", "The Census Bureau defines an individual as poor if they make less than $11,139 a year. The dollar amount rises for every member added to the household. For example, the average family of four is considered poor if they make less than $22,314. For a family of three like Hanson, Wright and their daughter, the threshold is just a little more than $17,000. \"There's a lot of people suffering,\" said Karen Lee, a financial planner and author of several books, including \"Simple Steps to Help People Get Unstuck Financially.\" Lee said it's important for people who've never faced poverty to keep a positive outlook and believe that things can get better. \"I have seen people go from riches to rags to riches to rags,\" she said. \"You can rebuild, and you can completely change careers and rebuild.\" That's what Hanson and Wright are doing. Hanson is betting on a new business he started: building security cages for air conditioners to prevent copper theft. Wright is teaching herself Web development. \"I literally threw my Rolodex away, because it was all real-estate-related,\" she said. \"It's no longer of any use to me. So being able to let go is going to be a person's biggest advantage.\"" ]
2
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How much did she charge?
BEIJING, China (CNN) -- Chen Xiao had pretty much given up making her own decisions and so decided to throw open her life to the whims of China's hundreds of millions of Internet users, known in China as netizens. Beijing resident Chen Xiao decided to put her life up for sale after an unhappy 2008. "It's your right to arrange Chen Xiao's life, and it's my obligation to serve you," read her online shop. Since December, Chen has been allowing others to decide what she will do each day, because, for the most part, last year was awful, she said. Her hometown was hit by blizzards, her country rocked by a devastating earthquake, friends divorced and her clothing shop went bankrupt. "Every time I had a plan for what I wanted my life to be like, nothing would come of it. It was very disappointing. I figured if other people came up with things for me to do, I might stumble upon something new and better," she told CNN. What she stumbled upon was not only a new life but a new way to make a living. She charges about $3 an hour, and she's been asked to do almost everything from delivering pet food to caring for stray cats to taking a hot lunch to a homeless man. What surprised her the most was not so much the varied requests but being able to find happiness in the process. "If somebody asks you to do something, something simple, and you do it, it can make you very happy. You can change from a gloomy person to a very bright one. It can help give you a new sense of self-esteem," she said. So far, the most meaningful assignment she was given was attending a child's birth -- the father was a complete stranger who just wanted someone to take pictures and share the moment. There are limits to what she will agree to do. She will not do anything illegal, immoral or violent, but she said that has not stopped some from asking. "When I first started there was this man who would send me these really disgusting text messages. His words were over the top... nauseating," she said. There was also a man who wanted to meet her for a few private hours at a ski chalet. When she turned up with a friend to take photographs, he backed out and then demanded a refund, but Chen refused. In many ways she is just a glorified errand girl, but with a unique China twist. Chen is another example here of how in China the Internet is crossing over from cyberspace to the real world. Chen does not know how much longer she will keep taking cyberrequests. For now it is a good way to survive the financial crisis when many others are losing their jobs and businesses are going broke. "When people stop needing me, I'll go back to my original life. But I don't know what will come," she said. China's netizens will most likely make that decision for her as well.
[ "BEIJING, China (CNN) -- Chen Xiao had pretty much given up making her own decisions and so decided to throw open her life to the whims of China's hundreds of millions of Internet users, known in China as netizens. Beijing resident Chen Xiao decided to put her life up for sale after an unhappy 2008. \"It's your right to arrange Chen Xiao's life, and it's my obligation to serve you,\" read her online shop. Since December, Chen has been allowing others to decide what she will do each day, because, for the most part, last year was awful, she said. Her hometown was hit by blizzards, her country rocked by a devastating earthquake, friends divorced and her clothing shop went bankrupt. \"Every time I had a plan for what I wanted my life to be like, nothing would come of it. It was very disappointing. I figured if other people came up with things for me to do, I might stumble upon something new and better,\" she told CNN. What she stumbled upon was not only a new life but a new way to make a living. She charges about $3 an hour, and she's been asked to do almost everything from delivering pet food to caring for stray cats to taking a hot lunch to a homeless man. What surprised her the most was not so much the varied requests but being able to find happiness in the process. \"If somebody asks you to do something, something simple, and you do it, it can make you very happy. You can change from a gloomy person to a very bright one. It can help give you a new sense of self-esteem,\" she said. So far, the most meaningful assignment she was given was attending a child's birth -- the father was a complete stranger who just wanted someone to take pictures and share the moment. There are limits to what she will agree to do. She will not do anything illegal, immoral or violent, but she said that has not stopped some from asking. \"When I first started there was this man who would send me these really disgusting text messages. His words were over the top... nauseating,\" she said. There was also a man who wanted to meet her for a few private hours at a ski chalet. When she turned up with a friend to take photographs, he backed out and then demanded a refund, but Chen refused. In many ways she is just a glorified errand girl, but with a unique China twist. ", "Chen is another example here of how in China the Internet is crossing over from cyberspace to the real world. Chen does not know how much longer she will keep taking cyberrequests. For now it is a good way to survive the financial crisis when many others are losing their jobs and businesses are going broke. \"When people stop needing me, I'll go back to my original life. But I don't know what will come,\" she said. China's netizens will most likely make that decision for her as well." ]
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1
what art wAs shown?
From a distance, it looks like an apparition: a huge multi-colored hot-air balloon floating in the Baghdad sky, bearing a large poster of Jesus Christ. Below it, an Iraqi flag. Santa and his helpers stand under palm trees at Baghdad's first public Christmas festival. Welcome to the first-ever public Christmas celebration in Baghdad, held Saturday and sponsored by the Iraqi Interior Ministry. Once thought to be infiltrated by death squads, the Ministry now is trying to root out sectarian violence -- as well as improve its P.R. image. The event takes place in a public park in eastern Baghdad, ringed with security checkpoints. Interior Ministry forces deployed on surrounding rooftops peer down at the scene: a Christmas tree decorated with ornaments and tinsel; a red-costumed Santa Claus waving to the crowd, an Iraqi flag draped over his shoulders; a red-and-black-uniformed military band playing stirring martial music, not Christmas carols. On a large stage, children dressed in costumes representing Iraq's many ethnic and religious groups -- Kurds, Turkmen, Yazidis, Christians, Arab Muslims not defined as Sunni or Shiite -- hold their hands aloft and sing "We are building Iraq!" Two young boys, a mini-policeman and a mini-soldier sporting painted-on mustaches, march stiffly and salute. Watch the celebration in Baghdad » Even before I can ask Interior Ministry spokesman Major-General Abdul Karim Khalaf a question, he greets me with a big smile. "All Iraqis are Christian today!" he says. Khalaf says sectarian and ethnic violence killed thousands of Iraqis. "Now that we have crossed that hurdle and destroyed the incubators of terrorism," he says, "and the security situation is good, we have to go back and strengthen community ties." In spite of his claim, the spokesman is surrounded by heavy security. Yet this celebration shows that the security situation in Baghdad is improving. Many of the people attending the Christmas celebration appear to be Muslims, with women wearing head scarves. Suad Mahmoud, holding her 16-month-old daughter, Sara, tells me she is indeed Muslim, but she's very happy to be here. "My mother's birthday also is this month, so we celebrate all occasions," she says, "especially in this lovely month of Christmas and New Year." Father Saad Sirop Hanna, a Chaldean Christian priest, is here too. He was kidnapped by militants in 2006 and held for 28 days. He knows firsthand how difficult the lot of Christians in Iraq is but, he tells me, "We are just attesting that things are changing in Baghdad, slowly, but we hope that this change actually is real. We will wait for the future to tell us the truth about this." He just returned from Rome. "I came back to Iraq because I believe that we can live here," he says. "I have so many [Muslim] friends and we are so happy they started to think about things from another point of view and we want to help them." The Christmas celebration has tables loaded with cookies and cakes. Families fill plates and chat in the warm winter sun. Santa balloons hang from trees. An artist uses oil paint to create a portrait of Jesus. In the middle of the park there's an art exhibit, the creation of 11- and 12-year-olds: six displays, each about three feet wide, constructed of cardboard and Styrofoam, filled with tiny dolls dressed like ordinary people, along with model soldiers and police. They look like model movie sets depicting everyday life in Baghdad. Afnan, 12 years old, shows me her model called "Arresting the Terrorists." "These are the terrorists," she tells me. "They were trying to blow up the school." In the middle of the street a dead "terrorist" sprawls on the asphalt, his bloody arm torn from his body by an explosion. Afnan tells me she used red nail polish to paint the blood.
[ "From a distance, it looks like an apparition: a huge multi-colored hot-air balloon floating in the Baghdad sky, bearing a large poster of Jesus Christ. Below it, an Iraqi flag. Santa and his helpers stand under palm trees at Baghdad's first public Christmas festival. Welcome to the first-ever public Christmas celebration in Baghdad, held Saturday and sponsored by the Iraqi Interior Ministry. Once thought to be infiltrated by death squads, the Ministry now is trying to root out sectarian violence -- as well as improve its P.R. image. The event takes place in a public park in eastern Baghdad, ringed with security checkpoints. Interior Ministry forces deployed on surrounding rooftops peer down at the scene: a Christmas tree decorated with ornaments and tinsel; a red-costumed Santa Claus waving to the crowd, an Iraqi flag draped over his shoulders; a red-and-black-uniformed military band playing stirring martial music, not Christmas carols. On a large stage, children dressed in costumes representing Iraq's many ethnic and religious groups -- Kurds, Turkmen, Yazidis, Christians, Arab Muslims not defined as Sunni or Shiite -- hold their hands aloft and sing \"We are building Iraq!\" Two young boys, a mini-policeman and a mini-soldier sporting painted-on mustaches, march stiffly and salute. Watch the celebration in Baghdad » Even before I can ask Interior Ministry spokesman Major-General Abdul Karim Khalaf a question, he greets me with a big smile. \"All Iraqis are Christian today!\" he says. Khalaf says sectarian and ethnic violence killed thousands of Iraqis. \"Now that we have crossed that hurdle and destroyed the incubators of terrorism,\" he says, \"and the security situation is good, we have to go back and strengthen community ties.\" In spite of his claim, the spokesman is surrounded by heavy security. Yet this celebration shows that the security situation in Baghdad is improving. Many of the people attending the Christmas celebration appear to be Muslims, with women wearing head scarves. Suad Mahmoud, holding her 16-month-old daughter, Sara, tells me she is indeed Muslim, but she's very happy to be here. \"My mother's birthday also is this month, so we celebrate all occasions,\" she says, \"especially in this lovely month of Christmas and New Year.\" Father Saad Sirop Hanna, a Chaldean Christian priest, is here too. He was kidnapped by militants in 2006 and held for 28 days. ", "He knows firsthand how difficult the lot of Christians in Iraq is but, he tells me, \"We are just attesting that things are changing in Baghdad, slowly, but we hope that this change actually is real. We will wait for the future to tell us the truth about this.\" He just returned from Rome. \"I came back to Iraq because I believe that we can live here,\" he says. \"I have so many [Muslim] friends and we are so happy they started to think about things from another point of view and we want to help them.\" The Christmas celebration has tables loaded with cookies and cakes. Families fill plates and chat in the warm winter sun. Santa balloons hang from trees. An artist uses oil paint to create a portrait of Jesus. In the middle of the park there's an art exhibit, the creation of 11- and 12-year-olds: six displays, each about three feet wide, constructed of cardboard and Styrofoam, filled with tiny dolls dressed like ordinary people, along with model soldiers and police. They look like model movie sets depicting everyday life in Baghdad. Afnan, 12 years old, shows me her model called \"Arresting the Terrorists.\" \"These are the terrorists,\" she tells me. \"They were trying to blow up the school.\" In the middle of the street a dead \"terrorist\" sprawls on the asphalt, his bloody arm torn from his body by an explosion. Afnan tells me she used red nail polish to paint the blood." ]
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0
What is the current coverage for Omnipod 5?
some sort of software function. So we have been building rapidly. And I think I look back and think about where we are in our in these final stages of the clearance for Omnipod 5. And I think it's so great we made these investments, and we've built such dramatic capabilities here because it is a moat for others behind us to get really good at remote insulin delivery from either a PDM and/or mobile phones. Those are not easy to do. And then obviously, all of the integrations with our partners. I wouldn't say we're done. This is an area that will be continued investment for us for quite some time to come. We have no shortage of really exciting disruptive innovation programs ahead of us, and we will continue to invest here. And we've always said we'll get a little bit more maybe public about what those programs might look like as we think about once we've got Omnipod five into full market release. But areas of investment for us are, for example, continuing to advance our algorithms because that will provide ease of use, more automation and better outcomes continuing to interface with, obviously, additional sensors but also additional phone platforms, continuing to build value in digital. So things like data, insights and decision support and serving up, generating insights for patients, payers and clinicians. Just as some examples. So we've got work going on in all those areas. And I don't think that's going to slow down anytime soon, and we'll continue to build capabilities there. And then the second question around Omnipod five and covered lives. As I mentioned in my prepared remarks, the teams are doing a great job here. We're really encouraged by the discussions that have been being had by payers. We're definitely educating the pharmacy channel for the first time on automated insulin delivery and the value of Omnipod 5. Those conversations are going well. We already have some coverage established. And as we've always said, as the clinical data gets published, we expect more coverage. And then, of course, on clearance, we expect more coverage. And so we're building -- we're right where we expect to be at this point. Really, really delighted with the team's work and really optimistic that we're going to launch with a decent coverage position. And also build very rapidly from there. So that -- and all of our tactics are really designed to make that happen. The ones that I mentioned in my script around leveraging the data, pricing at parity, all of that is designed to make sure that we establish rapid access. Operator Thank you. I show our next question comes from the line of Ravi Misra from Berenberg Capital, please go ahead. Ravi Misra -- Berenberg -- Analyst So I guess I just want to step back to the broader diabetes landscape, if I may, for a second. Becton announced that it's spinning off its business this morning in the diabetes world. And just looking at their revenue numbers and their kind of focus, can you maybe think about or maybe help us think about how you think about kind of where we are progressing as an industry? I mean, to me, I would think perhaps it's a signal that pumps are the way given that this is a business with flattish revenue focused on needles. But just curious to see how you guys are thinking about it up there. Thanks. Shacey Petrovic -- Director, President and Chief Executive Officer of Insulet Corporation and Director, Exact Sciences Sure. Yes, Ravi, good question. I mean I think you're right. We certainly believe and we've been very public about our belief that this market will double and that we're going to take a very exciting position in this fast-growing market and that is being driven by so many things. We've talked about what's been happening with CGM adoption. It's actually almost breathtaking when you look back five years and think about what's happened to the blood glucose monitoring business and what's happened with CGM. It's been a pretty remarkable transformation in the market and the value of real-time CGM data and what that has meant in terms of technology integration and techn
[ "some sort of software function. So we have been building rapidly.\nAnd I think I look back and think about where we are in our in these final stages of the clearance for Omnipod 5. And I think it's so great we made these investments, and we've built such dramatic capabilities here because it is a moat for others behind us to get really good at remote insulin delivery from either a PDM and/or mobile phones. Those are not easy to do. And then obviously, all of the integrations with our partners. I wouldn't say we're done. This is an area that will be continued investment for us for quite some time to come. We have no shortage of really exciting disruptive innovation programs ahead of us, and we will continue to invest here. And we've always said we'll get a little bit more maybe public about what those programs might look like as we think about once we've got Omnipod five into full market release. But areas of investment for us are, for example, continuing to advance our algorithms because that will provide ease of use, more automation and better outcomes continuing to interface with, obviously, additional sensors but also additional phone platforms, continuing to build value in digital. So things like data, insights and decision support and serving up, generating insights for patients, payers and clinicians.\nJust as some examples. So we've got work going on in all those areas. And I don't think that's going to slow down anytime soon, and we'll continue to build capabilities there. And then the second question around Omnipod five and covered lives. As I mentioned in my prepared remarks, the teams are doing a great job here. We're really encouraged by the discussions that have been being had by payers. We're definitely educating the pharmacy channel for the first time on automated insulin delivery and the value of Omnipod 5.\n", "Those conversations are going well. We already have some coverage established. And as we've always said, as the clinical data gets published, we expect more coverage. And then, of course, on clearance, we expect more coverage. And so we're building -- we're right where we expect to be at this point. Really, really delighted with the team's work and really optimistic that we're going to launch with a decent coverage position. And also build very rapidly from there. So that -- and all of our tactics are really designed to make that happen. The ones that I mentioned in my script around leveraging the data, pricing at parity, all of that is designed to make sure that we establish rapid access.\nOperator\nThank you. I show our next question comes from the line of Ravi Misra from Berenberg Capital, please go ahead.\nRavi Misra -- Berenberg -- Analyst\nSo I guess I just want to step back to the broader diabetes landscape, if I may, for a second. Becton announced that it's spinning off its business this morning in the diabetes world. And just looking at their revenue numbers and their kind of focus, can you maybe think about or maybe help us think about how you think about kind of where we are progressing as an industry? I mean, to me, I would think perhaps it's a signal that pumps are the way given that this is a business with flattish revenue focused on needles. But just curious to see how you guys are thinking about it up there. Thanks.\nShacey Petrovic -- Director, President and Chief Executive Officer of Insulet Corporation and Director, Exact Sciences \nSure. Yes, Ravi, good question. I mean I think you're right. We certainly believe and we've been very public about our belief that this market will double and that we're going to take a very exciting position in this fast-growing market and that is being driven by so many things. We've talked about what's been happening with CGM adoption. It's actually almost breathtaking when you look back five years and think about what's happened to the blood glucose monitoring business and what's happened with CGM. It's been a pretty remarkable transformation in the market and the value of real-time CGM data and what that has meant in terms of technology integration and techn" ]
2
[ 0, 0 ]
0
What was the organic growth rate of GMF's total revenue in the second quarter
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. As 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. Electronic 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. Margin 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. As 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. 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. As 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. We 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. As a result, at quarter end, we had $245 million of cash and a revolving credit facility of $233 million available. So in total,
[ "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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What is the expected volume for CXL buffer in earnest to start in 2023 and 2024
w, when there's a market share change between the two, we continue to grow. And that's also true for the next generation of memories. We engaged with the two main vendors there. We also engaged with, I would say, nascent vendors who are starting to develop their own processors for data centers. And that will create some additional opportunity down the road, not this year or next year, but the year after. So we try to engage with everyone developing chips for data centers, whether it's the traditional AMD or Intel or the people developing their own chips, especially the cloud guys. John Pitzer -- Credit Suisse -- Analyst And then, Luc, as my follow-up, you've talked about kind of the long design cycles as we go from DDR4 to DDR5 and your optimism around kind of your ability to continue to grow share through that transition. I'm curious, is it too early on the CXL side to talk about what the design funnel looks like and kind of what your position is in that design funnel? Luc Seraphin -- Chief Executive Officer It's a bit early to say where we are in the design funnel. What I would say is we think the industry first has converged mostly to the CXL interface. The architecture of the chips for sector interfaces are being defined as we speak. And we are thankful to those discussions with memory vendors, processor vendors, and the cloud guys. I think we are in the phase of defining chip architectures and memory subsystem architecture. And we're taking a good part or a central part to those discussions. Then we will go into a phase of development and market ramp, as I said, you know, the volume for CXL buffer in earnest will start sometime in 2023 and 2024. But the things that have changed since last time we've talked is that the industry has aligned around CXL interfaces. The architectures are being defined, and we are part of those discussions with the industry. The other thing that is happening for Rambus, and I think we're uniquely positioned for that is that a lot of the IP contained is CXL buffer, IP that we have developed as part of our IT business. CXL interface is actually 32-gig PHY and a controller. We have part -- we have this as part of our offering in our IT core business. The CXL buffers will require security functions. We have this as part of our IT business. So from an IP content standpoint, that goes into these chips. I think we're uniquely positioned to be successful in that space. John Pitzer -- Credit Suisse -- Analyst Perfect, thank you. Operator [Operator instructions] Your next question comes from the line of Mark Lipacis with Jefferies. Your line is open. You may ask your question. Mark Lipacis -- Jefferies -- Analyst Hi, thanks for taking my questions. A couple of questions. Luc, you -- in the past, you've successfully used inventory strategically to meet upside. And today, you had mentioned again that, you know, you often have -- or you have like some strategic inventory placed in the supply chain. Can you -- if I look at your balance sheet, it looks like your inventories are kind of flattish year on year, but you're expecting more revenues this year. So where is the strategic inventory? Is it on other -- is there other places in the supply chain not showing up on your balance sheet where you have access to it? If you could help explaining like how you're positioned right now with the ability to meet upside should it manifest? Rahul Mathur -- Chief Financial Officer Hey, Mark, it's Rahul. Thanks, and it's a great question. What I'll tell you is that inventory report is at a point in time at the end of the quarter. And so clearly, over the -- some part of the quarter, it will go up a little bit higher and sometimes it will go a little lower. We do have some inventory that's placed with some distributors, and that helps us solve the inventory or request from partners on a quick basis. And so that's not going to show up in our balance sheet. But hopefully, that's a little bit of additional color. Mark Lipacis -- Jefferies -- Analyst That's helpful. Thank you. And then a follow-up, if I may. Can you talk
[ "w, when there's a market share change between the two, we continue to grow. And that's also true for the next generation of memories. We engaged with the two main vendors there. We also engaged with, I would say, nascent vendors who are starting to develop their own processors for data centers.\nAnd that will create some additional opportunity down the road, not this year or next year, but the year after. So we try to engage with everyone developing chips for data centers, whether it's the traditional AMD or Intel or the people developing their own chips, especially the cloud guys.\nJohn Pitzer -- Credit Suisse -- Analyst\nAnd then, Luc, as my follow-up, you've talked about kind of the long design cycles as we go from DDR4 to DDR5 and your optimism around kind of your ability to continue to grow share through that transition. I'm curious, is it too early on the CXL side to talk about what the design funnel looks like and kind of what your position is in that design funnel?\nLuc Seraphin -- Chief Executive Officer\nIt's a bit early to say where we are in the design funnel. What I would say is we think the industry first has converged mostly to the CXL interface. The architecture of the chips for sector interfaces are being defined as we speak. And we are thankful to those discussions with memory vendors, processor vendors, and the cloud guys.\nI think we are in the phase of defining chip architectures and memory subsystem architecture. And we're taking a good part or a central part to those discussions. Then we will go into a phase of development and market ramp, as I said, you know, the volume for CXL buffer in earnest will start sometime in 2023 and 2024. But the things that have changed since last time we've talked is that the industry has aligned around CXL interfaces.\nThe architectures are being defined, and we are part of those discussions with the industry. The other thing that is happening for Rambus, and I think we're uniquely positioned for that is that a lot of the IP contained is CXL buffer, IP that we have developed as part of our IT business. CXL interface is actually 32-gig PHY and a controller. We have part -- we have this as part of our offering in our IT core business.\n", "The CXL buffers will require security functions. We have this as part of our IT business. So from an IP content standpoint, that goes into these chips. I think we're uniquely positioned to be successful in that space.\nJohn Pitzer -- Credit Suisse -- Analyst\nPerfect, thank you.\nOperator\n[Operator instructions] Your next question comes from the line of Mark Lipacis with Jefferies. Your line is open. You may ask your question.\nMark Lipacis -- Jefferies -- Analyst\nHi, thanks for taking my questions. A couple of questions. Luc, you -- in the past, you've successfully used inventory strategically to meet upside. And today, you had mentioned again that, you know, you often have -- or you have like some strategic inventory placed in the supply chain.\nCan you -- if I look at your balance sheet, it looks like your inventories are kind of flattish year on year, but you're expecting more revenues this year. So where is the strategic inventory? Is it on other -- is there other places in the supply chain not showing up on your balance sheet where you have access to it? If you could help explaining like how you're positioned right now with the ability to meet upside should it manifest?\nRahul Mathur -- Chief Financial Officer\nHey, Mark, it's Rahul. Thanks, and it's a great question. What I'll tell you is that inventory report is at a point in time at the end of the quarter. And so clearly, over the -- some part of the quarter, it will go up a little bit higher and sometimes it will go a little lower.\nWe do have some inventory that's placed with some distributors, and that helps us solve the inventory or request from partners on a quick basis. And so that's not going to show up in our balance sheet. But hopefully, that's a little bit of additional color.\nMark Lipacis -- Jefferies -- Analyst\nThat's helpful. Thank you. And then a follow-up, if I may. Can you talk " ]
2
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1
What is the sequential growth rate from Q4 to Q1 for Segment, normalized for Q4
t's the power of software. And so that's what we're seeing the Super SIM and a really powerful opportunity to make it. So once devices leave the factory, they continue their connectivity stories, the performance of that connectivity, the cost of that connectivity is getting better all the time because it's expensive to manufacture. As you imagine, you've got an IoT humidifier, or truck, or garbage dumpster, or trombone, you don't want to have to remanufacture that thing every time you get better connectivity technology. You want to be able to continually silently upgrade it in the background. That's what Super SIM enables companies to do because their connectivity is not something that is set into the device, and it's something that they can continually evolve in the cloud. And so we took that whole layer of connectivity and we moved it to a software value proposition that runs in the cloud. I will say I think the IoT world is a little challenged right now because of manufacturing and global supply chain issues that we've seen in every industry. It has set back some of these IoT use cases. They struggled to get supply chains and things like that set up. And that's something I think we've seen across the industry of IoT especially industrial IoT and things like that. But I expect that that's not a durable trend and that will -- in the long scheme of things the 5G rollout and the narrowband implementations that use far less energy and that are far more oriented toward a wide breadth of devices. A much lower price point will actually enable a whole slew of innovation in the years to come. Fred Havemeyer -- Macquarie Group -- Analyst Thank you. Thank you, Jeff. And then another question, can you give us an update on how your relationship with Syniverse is progressing? Are you at a point where you're materially routing A2P messages for Syniverse with your wholesale agreement? Jeff Lawson -- Co-Founder and Chief Executive Officer I'll take that. So you know just for background, we've worked with Syniverse for a long time so they've been a partner of ours for many years. And so there hasn't been -- we didn't need to like make a material change to our business, as a part, where really that I feel is about cementing our relationship. But as you pointed out, we haven't closed the partnership yet, that's still pending. And so a lot of that work still is forthcoming as we close that partnership that we previously announced. Fred Havemeyer -- Macquarie Group -- Analyst Thank you very much. Congratulations on the quarter. Jeff Lawson -- Co-Founder and Chief Executive Officer Thank you. Operator Your next question comes from Alex Zukin with Wolfe Research. Your line is open. Alex Zukin -- Wolfe Research -- Analyst Hey, guys. Thanks for taking the question. I've got two sort of metrics focused ones. I think it would be pretty helpful just -- you know going back to Michael's original question about Segment, if we normalize in Q4 for Segment, the sequential growth from Q4 to Q1, you know something in the high teens, maybe 20%, and it's stepped down to 4.5%, could we just get a better understanding for what is their heightened seasonality with this business later in the year? Because it would help us you know not get ahead of ourselves to just understand the seasonal kind of patterns of that business. And then I've got a quick follow-up. Khozema Shipchandler -- Chief Financial Officer Is the follow-up on Segment? Do you want to ask that question now as well? Alex Zukin -- Wolfe Research -- Analyst No, the follow-up is on A2P.  Khozema Shipchandler -- Chief Financial Officer OK. Let me take the Segment question first, Alex. So I would say in general, you know there's not like per se a seasonal dynamic that I would necessarily point to. I think in general, I mean we feel great about the way that the acquisition is performing as we've noted several times during the course of this call. We feel quite good about the way that that business is digressing. Some of the products that they've announced. I think anything that you're seeing in terms of
[ "t's the power of software. And so that's what we're seeing the Super SIM and a really powerful opportunity to make it. So once devices leave the factory, they continue their connectivity stories, the performance of that connectivity, the cost of that connectivity is getting better all the time because it's expensive to manufacture.\nAs you imagine, you've got an IoT humidifier, or truck, or garbage dumpster, or trombone, you don't want to have to remanufacture that thing every time you get better connectivity technology. You want to be able to continually silently upgrade it in the background. That's what Super SIM enables companies to do because their connectivity is not something that is set into the device, and it's something that they can continually evolve in the cloud. And so we took that whole layer of connectivity and we moved it to a software value proposition that runs in the cloud.\nI will say I think the IoT world is a little challenged right now because of manufacturing and global supply chain issues that we've seen in every industry. It has set back some of these IoT use cases. They struggled to get supply chains and things like that set up. And that's something I think we've seen across the industry of IoT especially industrial IoT and things like that.\nBut I expect that that's not a durable trend and that will -- in the long scheme of things the 5G rollout and the narrowband implementations that use far less energy and that are far more oriented toward a wide breadth of devices. A much lower price point will actually enable a whole slew of innovation in the years to come.\nFred Havemeyer -- Macquarie Group -- Analyst\nThank you. Thank you, Jeff. And then another question, can you give us an update on how your relationship with Syniverse is progressing? Are you at a point where you're materially routing A2P messages for Syniverse with your wholesale agreement?\nJeff Lawson -- Co-Founder and Chief Executive Officer\nI'll take that. So you know just for background, we've worked with Syniverse for a long time so they've been a partner of ours for many years. And so there hasn't been -- we didn't need to like make a material change to our business, as a part, where really that I feel is about cementing our relationship. But as you pointed out, we haven't closed the partnership yet, that's still pending.\nAnd so a lot of that work still is forthcoming as we close that partnership that we previously announced.\n", "Fred Havemeyer -- Macquarie Group -- Analyst\nThank you very much. Congratulations on the quarter.\nJeff Lawson -- Co-Founder and Chief Executive Officer\nThank you.\nOperator\nYour next question comes from Alex Zukin with Wolfe Research. Your line is open.\nAlex Zukin -- Wolfe Research -- Analyst\nHey, guys. Thanks for taking the question. I've got two sort of metrics focused ones. I think it would be pretty helpful just -- you know going back to Michael's original question about Segment, if we normalize in Q4 for Segment, the sequential growth from Q4 to Q1, you know something in the high teens, maybe 20%, and it's stepped down to 4.5%, could we just get a better understanding for what is their heightened seasonality with this business later in the year? Because it would help us you know not get ahead of ourselves to just understand the seasonal kind of patterns of that business.\nAnd then I've got a quick follow-up.\nKhozema Shipchandler -- Chief Financial Officer\nIs the follow-up on Segment? Do you want to ask that question now as well?\nAlex Zukin -- Wolfe Research -- Analyst\nNo, the follow-up is on A2P. \nKhozema Shipchandler -- Chief Financial Officer\nOK. Let me take the Segment question first, Alex. So I would say in general, you know there's not like per se a seasonal dynamic that I would necessarily point to. I think in general, I mean we feel great about the way that the acquisition is performing as we've noted several times during the course of this call.\nWe feel quite good about the way that that business is digressing. Some of the products that they've announced. I think anything that you're seeing in terms of" ]
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Who called the attack a violation of U.N resolution?
BEIRUT, Lebanon (CNN) -- Lebanon's prime minister condemned the firing of rockets into northern Israel after an attack wounded two Israelis on Thursday. He said his government is trying to determine who was responsible. U.N. soldiers on Thursday inspect the site in Lebanon thought to be the source of rockets fired into Israel. Israel's military warned Israeli civilians to stick close to shelters after police said at least four rockets hit near the city of Nahariya, about 6 miles (10 kilometers) south of the Lebanese border. The Israeli military said it returned fire across the border with mortars. Schools and kindergartens were closed in Nahariya and the nearby town of Shlomi, the Israel Defense Forces reported. "What happened in the south [of Lebanon] is a violation of Resolution 1701 and is rejected by Lebanon," Lebanese Prime Minister Fouad Siniora said, referring to the U.N. resolution that ended the 2006 conflict between Israel and Lebanon's Hezbollah militia. In a statement issued by his office, Siniora said he has asked Lebanese authorities to investigate the attack alongside troops from the U.N. peacekeeping force deployed along the border. He also condemned the Israeli retaliatory strikes, which the Lebanese military said inflicted no casualties. Watch CNN's Christiane Amanpour discuss rocket attack » There was no immediate claim of responsibility for the attacks, which came as Israeli airstrikes on Gaza, to the south, entered a 13th day. The Israeli campaign in Gaza is aimed at halting rocket fire from the Hamas-ruled Palestinian territory. Israel fought a similar battle against the Lebanese Shiite Muslim militia Hezbollah in 2006, during which Hezbollah rained rockets on cities in Israeli's north for a month before a cease-fire was reached. But Hezbollah has kept a tight rein on its forces in southern Lebanon since the cease-fire, and a number of Palestinian factions operate in southern Lebanon as well. Andrea Tenenti, a spokesman for UNIFIL, the U.N. peacekeeping mission in Lebanon, said the rockets appear to have been fired from a point about 4.5 miles east of Naqoura, where the peacekeepers are headquartered. "We've been intensifying our patrols on the ground in order to prevent any further incident," Tenenti said. He said UNIFIL's commander, Maj. Gen. Claudio Graziano, is in "constant and close contact" with both sides "and has urged maximum restraint in order to prevent any escalation of the situation." CNN's Michal Zippori in Jerusalem and Cal Perry and Nada Husseini in Beirut contributed to this report.
[ "BEIRUT, Lebanon (CNN) -- Lebanon's prime minister condemned the firing of rockets into northern Israel after an attack wounded two Israelis on Thursday. He said his government is trying to determine who was responsible. U.N. soldiers on Thursday inspect the site in Lebanon thought to be the source of rockets fired into Israel. Israel's military warned Israeli civilians to stick close to shelters after police said at least four rockets hit near the city of Nahariya, about 6 miles (10 kilometers) south of the Lebanese border. The Israeli military said it returned fire across the border with mortars. Schools and kindergartens were closed in Nahariya and the nearby town of Shlomi, the Israel Defense Forces reported. \"What happened in the south [of Lebanon] is a violation of Resolution 1701 and is rejected by Lebanon,\" Lebanese Prime Minister Fouad Siniora said, referring to the U.N. resolution that ended the 2006 conflict between Israel and Lebanon's Hezbollah militia. In a statement issued by his office, Siniora said he has asked Lebanese authorities to investigate the attack alongside troops from the U.N. peacekeeping force deployed along the border. He also condemned the Israeli retaliatory strikes, which the Lebanese military said inflicted no casualties. Watch CNN's Christiane Amanpour discuss rocket attack » There was no immediate claim of responsibility for the attacks, which came as Israeli airstrikes on Gaza, to the south, entered a 13th day. The Israeli campaign in Gaza is aimed at halting rocket fire from the Hamas-ruled Palestinian territory. Israel fought a similar battle against the Lebanese Shiite Muslim militia Hezbollah in 2006, during which Hezbollah rained rockets on cities in Israeli's north for a month before a cease-fire was reached. But Hezbollah has kept a tight rein on its forces in southern Lebanon since the cease-fire, and a number of Palestinian factions operate in southern Lebanon as well. Andrea Tenenti, a spokesman for UNIFIL, the U.N. peacekeeping mission in Lebanon, said the rockets appear to have been fired from a point about 4.5 miles east of Naqoura, where the peacekeepers are headquartered. \"We've been intensifying our patrols on the ground in order to prevent any further incident,\" Tenenti said. He said UNIFIL's commander, Maj. Gen. Claudio Graziano, is in \"constant and close contact\" with both sides \"and has urged maximum restraint in order to prevent any escalation of the situation.\" ", "CNN's Michal Zippori in Jerusalem and Cal Perry and Nada Husseini in Beirut contributed to this report." ]
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0.63093
What is the number of new development agreements signed in Central Asia
nnis Geiger with UBS. Dennis Geiger -- UBS Securities -- Analyst Great. Thanks for the question. And Todd and GP, thanks for the latest update on the international performance and the growth outlook. Just wondering, if you could talk a bit more about the international development opportunity. I think certainly, a big number announced this week for the U.K. and you highlighted Canada and some of the agreements in Central Asia just now. But just wondering if anything more to add on sort of the discussions with existing international franchisees, how they're thinking about the growth as well as those new partner discussions that you mentioned? I'm curious, if the COVID challenges at all have impacted those discussions or the pace of opens and any other kind of guideposts that we should be looking out for? Thank you. Gunther Plosch -- Chief Financial Officer Yeah, Dennis. Good morning. We're making steady progress on our development. As you know, it's one of the three strategic growth pillars. And we talked to you last time, eight weeks ago, since then, we actually signed a new development agreement in Central Asia with about 50 restaurants. So we also enabled a franchise flipping in Quebec, Canada that actually allows us to unlock that part of Canada, which is totally underpenetrated for us. So it creates growth for us. And we're getting more and more excited about the U.K., right? The U.K. consumer seems to be ready for us. We have built a robust franchise pipeline. We said it in the prepared remarks, about 20 franchisees put up their hands. So like I want to help you Wendy's grow in the U.K. And with that, a chief development officer said in one of the interviews in the U.K. that there is no reason to believe why the long-term potential of the U.K. for us shouldn't be 400 restaurants. Just to be clear, there's no development agreement signed for the U.K. It's a belief that we have and that we'll be going after and that's where we're going to make our investment. Operator And your next question comes from the line of Jeff Farmer with Gordon Haskett. Jeff Farmer -- Gordon Haskett -- Analyst Thank you. You briefly touched on it, but what your current staffing levels look like across the system? And what are some of the common themes of those franchisees that have had the most success with staffing in the current environment? Todd A. Penegor -- President, Chief Executive Officer and Director Yeah. As I mentioned a little bit earlier, staffing has gotten a little bit tighter out in our restaurants. We are really focused on ensuring that we're creating restaurants that are fun and energizing, leveraging technology to make them simpler to operate to make sure that our employees have a great experience. So in turn, our customers can have a great experience. So the focus is really on retention of the employees we have. We have seen folks paying a little bit more. We have seen folks doing things like paid time off. We're seeing folks do things like free lunches, and we're really trying to make sure that we're taking care of our existing employees. We're leveraging a lot of technology and tools that go out there and recruit even more folks to come into what we believe is a very great culture at Wendy's to work in our restaurants. And reimaging certainly helps to recruit employees into new restaurants, whether that's a new developed restaurant or reimaged restaurant, it certainly helps along the way. But it will be tight for a little bit for a variety of reasons, and we're managing through that as we look at where we're staffing folks in the restaurant and how we're positioning folks to drive the most throughput with how we're staffed. Operator And your next question comes from the line of Brian Mullan with Deutsche Bank. Brian Mullan -- Deutsche Bank -- Analyst Hey, thank you. Just another question on development. When you think about achieving 3% net unit growth next year, if you could just comment on the U.S. piece of that. Sitting here in May, are franchisees responding how you'd hoped to the incentives? And do you have a good se
[ "nnis Geiger with UBS.\nDennis Geiger -- UBS Securities -- Analyst\nGreat. Thanks for the question. And Todd and GP, thanks for the latest update on the international performance and the growth outlook. Just wondering, if you could talk a bit more about the international development opportunity. I think certainly, a big number announced this week for the U.K. and you highlighted Canada and some of the agreements in Central Asia just now. But just wondering if anything more to add on sort of the discussions with existing international franchisees, how they're thinking about the growth as well as those new partner discussions that you mentioned? I'm curious, if the COVID challenges at all have impacted those discussions or the pace of opens and any other kind of guideposts that we should be looking out for? Thank you.\nGunther Plosch -- Chief Financial Officer\nYeah, Dennis. Good morning. We're making steady progress on our development. As you know, it's one of the three strategic growth pillars. And we talked to you last time, eight weeks ago, since then, we actually signed a new development agreement in Central Asia with about 50 restaurants. So we also enabled a franchise flipping in Quebec, Canada that actually allows us to unlock that part of Canada, which is totally underpenetrated for us. So it creates growth for us.\nAnd we're getting more and more excited about the U.K., right? The U.K. consumer seems to be ready for us. We have built a robust franchise pipeline. We said it in the prepared remarks, about 20 franchisees put up their hands. So like I want to help you Wendy's grow in the U.K. And with that, a chief development officer said in one of the interviews in the U.K. that there is no reason to believe why the long-term potential of the U.K. for us shouldn't be 400 restaurants. Just to be clear, there's no development agreement signed for the U.K. It's a belief that we have and that we'll be going after and that's where we're going to make our investment.\nOperator\nAnd your next question comes from the line of Jeff Farmer with Gordon Haskett.\nJeff Farmer -- Gordon Haskett -- Analyst\nThank you. You briefly touched on it, but what your current staffing levels look like across the system? And what are some of the common themes of those franchisees that have had the most success with staffing in the current environment?\n", "Todd A. Penegor -- President, Chief Executive Officer and Director\nYeah. As I mentioned a little bit earlier, staffing has gotten a little bit tighter out in our restaurants. We are really focused on ensuring that we're creating restaurants that are fun and energizing, leveraging technology to make them simpler to operate to make sure that our employees have a great experience. So in turn, our customers can have a great experience.\nSo the focus is really on retention of the employees we have. We have seen folks paying a little bit more. We have seen folks doing things like paid time off. We're seeing folks do things like free lunches, and we're really trying to make sure that we're taking care of our existing employees. We're leveraging a lot of technology and tools that go out there and recruit even more folks to come into what we believe is a very great culture at Wendy's to work in our restaurants.\nAnd reimaging certainly helps to recruit employees into new restaurants, whether that's a new developed restaurant or reimaged restaurant, it certainly helps along the way. But it will be tight for a little bit for a variety of reasons, and we're managing through that as we look at where we're staffing folks in the restaurant and how we're positioning folks to drive the most throughput with how we're staffed.\nOperator\nAnd your next question comes from the line of Brian Mullan with Deutsche Bank.\nBrian Mullan -- Deutsche Bank -- Analyst\nHey, thank you. Just another question on development. When you think about achieving 3% net unit growth next year, if you could just comment on the U.S. piece of that. Sitting here in May, are franchisees responding how you'd hoped to the incentives? And do you have a good se" ]
2
[ 1, 0 ]
1
What was the growth rate of Google Other revenues in the first quarter of 2021
or the past four years, and we are working toward operating on carbon-free energy around the clock by 2030, a far more ambitious goal that we hope will be transformative for the industry. Five of our data centers in Europe and North America are already operating near or at 90% carbon-free energy around the clock. We are also working toward our commitment to help one billion people make more sustainable choices with our services by 2022. One example of how we are doing this is the new AI-powered feature in Maps that will show the route with the lowest carbon footprint when ETAs are the same. You'll also be able to compare the carbon impact between routes. Finally, as we look ahead to the rest of 2021, our four big themes continue to guide us: first, building and providing the most helpful products and services; second, continuing to earn the trust of our users by investing in high-quality information and keeping users' data safe and private; third, strong execution as a company, particularly as we start to reopen our offices; and fourth, building sustainable value in our own business and for our partners. As always, thank you to our Googlers around the world for a great start to the year. To everyone, I look forward to seeing you at IO. Over to Philipp. Philipp Schindler -- Chief Business Officer Thanks, Sundar, and good afternoon, everyone. It's great to be joining you again today. We're pleased with the strong growth in Google Services revenues in the first quarter. Year-on-year performance reflects elevated consumer online activity, broad-based strength in advertiser spend, and lapping of the initial impact of the pandemic on advertising revenues that began in March last year. In the first quarter in Search, we saw sustained strength across most categories led by retail. We also saw strong performance in tech and CPG. In YouTube, we had phenomenal growth driven by direct response followed by continued strength in brand. We've seen great momentum in TrueView for Action ads, with a number of advertisers using the format doubling over the past year. In Network, exceptional growth was driven by AdMob and Ad Manager with particular strength in app campaigns. Google Other revenues were driven by growth in Google Play and YouTube's non-advertising revenues, followed by hardware. I would now like to take a few minutes to dive deeper into the trends we're seeing in our business. As Sundar touched on earlier, the pandemic is evolving in different ways across the world. Some countries are in advanced stages of reopening, others are facing reacceleration of cases. And there is everything in between. It's never been more important to help businesses navigate the pandemic as circumstances change. On travel, we're starting to see renewed interest from users as they turn to Google to plan their next trip even before they're ready to book. Every travel partners looking to understand where demand is going and we are helping them to find these opportunities through insights and automation. For American Airlines, for example, that meant using our insight tools to anticipate demand on untapped routes. These newly prioritized routes had significantly higher booking rate in Search this quarter compared to last quarter. Also just last month, we made it free for hotels and travel companies to list their bookings links, similar to what we did with shopping last year. For consumers, it means more choice. For hotels and travel companies, it means free exposure on Google. For advertisers, it means paid campaigns can be augmented with free listings. We are already seeing positive results across the board. Let me switch gears now and talk about retail, where we had a very strong quarter. As you know, we've taken important steps over the past year to accelerate an open retail ecosystem. We made product listings free, removed commission fees and opened our shopping platform to Shopify and PayPal. We're also helping retailers with some key opportunities, such as innovating an omnichannel as the line between digital and physical retail continues to blur
[ "or the past four years, and we are working toward operating on carbon-free energy around the clock by 2030, a far more ambitious goal that we hope will be transformative for the industry. Five of our data centers in Europe and North America are already operating near or at 90% carbon-free energy around the clock. We are also working toward our commitment to help one billion people make more sustainable choices with our services by 2022. One example of how we are doing this is the new AI-powered feature in Maps that will show the route with the lowest carbon footprint when ETAs are the same. You'll also be able to compare the carbon impact between routes.\nFinally, as we look ahead to the rest of 2021, our four big themes continue to guide us: first, building and providing the most helpful products and services; second, continuing to earn the trust of our users by investing in high-quality information and keeping users' data safe and private; third, strong execution as a company, particularly as we start to reopen our offices; and fourth, building sustainable value in our own business and for our partners.\nAs always, thank you to our Googlers around the world for a great start to the year. To everyone, I look forward to seeing you at IO. Over to Philipp.\nPhilipp Schindler -- Chief Business Officer\nThanks, Sundar, and good afternoon, everyone. It's great to be joining you again today.\nWe're pleased with the strong growth in Google Services revenues in the first quarter. Year-on-year performance reflects elevated consumer online activity, broad-based strength in advertiser spend, and lapping of the initial impact of the pandemic on advertising revenues that began in March last year.\nIn the first quarter in Search, we saw sustained strength across most categories led by retail. We also saw strong performance in tech and CPG. In YouTube, we had phenomenal growth driven by direct response followed by continued strength in brand. We've seen great momentum in TrueView for Action ads, with a number of advertisers using the format doubling over the past year. In Network, exceptional growth was driven by AdMob and Ad Manager with particular strength in app campaigns. Google Other revenues were driven by growth in Google Play and YouTube's non-advertising revenues, followed by hardware.\n", "I would now like to take a few minutes to dive deeper into the trends we're seeing in our business. As Sundar touched on earlier, the pandemic is evolving in different ways across the world. Some countries are in advanced stages of reopening, others are facing reacceleration of cases. And there is everything in between. It's never been more important to help businesses navigate the pandemic as circumstances change.\nOn travel, we're starting to see renewed interest from users as they turn to Google to plan their next trip even before they're ready to book. Every travel partners looking to understand where demand is going and we are helping them to find these opportunities through insights and automation. For American Airlines, for example, that meant using our insight tools to anticipate demand on untapped routes. These newly prioritized routes had significantly higher booking rate in Search this quarter compared to last quarter. Also just last month, we made it free for hotels and travel companies to list their bookings links, similar to what we did with shopping last year. For consumers, it means more choice. For hotels and travel companies, it means free exposure on Google. For advertisers, it means paid campaigns can be augmented with free listings. We are already seeing positive results across the board.\nLet me switch gears now and talk about retail, where we had a very strong quarter. As you know, we've taken important steps over the past year to accelerate an open retail ecosystem. We made product listings free, removed commission fees and opened our shopping platform to Shopify and PayPal. We're also helping retailers with some key opportunities, such as innovating an omnichannel as the line between digital and physical retail continues to blur" ]
2
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1
What is the estimated revenue contribution from the deferral of TV+ subscriptions in the Services revenue for the 2020-Q1 quarter
u view 5G capability in a handset? And what's your view as to what the killer app will be from a consumer perspective? Tim Cook -- Chief Executive Officer We 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. Tejas Gala -- Senior Analyst, Corporate Finance and Investor Relations Thanks, Katy. Can we have the next question please? Operator We'll hear from Kyle McNealy with Jefferies. Kyle McNealy -- Jefferies -- Analyst Hi, 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? Tim Cook -- Chief Executive Officer I 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. Kyle McNealy -- Jefferies -- Analyst Okay, 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? Tim Cook -- Chief Executive Officer I'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. Tejas Gala -- Senior Analyst, Corporate Finance and Investor Relations Thanks, Kyle. Can we have the next question please? Operator Yes, Wamsi Mohan, Bank of America. Wamsi Mohan -- Bank of America -- Analyst Yes. 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? Tim Cook -- Chief Executive Officer I 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. Wamsi Mohan -- Bank of America -- Analyst Okay, 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. Luca Maestri -- Senior Vice President & Chief Financial Officer Yeah. 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,
[ "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," ]
2
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1
What was the non-GAAP operating income as a percentage of revenue in Q4 2020
ompounding the opportunity for selling RF, display driver and power management IC testers, handlers, and contactors. But the Cohu story is not limited to 5G. As mentioned earlier, we're capturing new customer opportunities in RF transceivers, Wi-Fi 6, general IoT, and even application processor test with some of these being new additions to our addressable market. Last year, we saw new U.S. export restrictions to Huawei. I believe everyone understands that smartphone demand is increasing. There has been a redistribution of business that translates into incremental orders for Cohu products from customers where we have greater share in new opportunities, particularly in China. There are significant positive trends in the Automotive segment, starting with many auto companies suggesting a complete transition to EV technology in the coming decade, and significant government mandates to go carbon-neutral in China, Europe, and the U.S. Another exciting trend is the rapid adoption of ADAS technologies in vehicles, which expands the use of processors, sensors, microcontrollers, displays and RF ICs. We believe our sales growth to the Automotive segment will benefit about equally from IC content growth in a projected vehicle SAR in the mid-teens this year. With the successful integration of Xcerra now behind us, we held an Analyst and Investor Conference early December describing a new target financial model in the path to 14% revenue CAGR to $940 million and 23% operating income over the mid-term. This comes from enabling testing of new high growth technologies in RF, battery management and ADAS processors, in gaining traction in automated optical inspection. Now, I'd like to turn it over to Jeff to provide details on fourth quarter results and share first quarter guidance. Jeffrey D. Jones -- Vice President, Finance and Chief Financial Officer Thanks, Luis. Before I walk through the Q4 results and Q1 guidance, please note that my comments that follow all refer to non-GAAP figures. Information about the non-GAAP financial measures, including the GAAP to non-GAAP reconciliations and other disclosures are included in the accompanying earnings release and investor presentation which are located on the Investor page of our website. Now turning to the financial results. Q4 revenue was $202.4 million and $4.9 million higher than the mid-point of our updated guidance range provided on December 1st. Fiscal year 2020 revenue was $636 million, growing 9% over 2019, and with nearly 19% CAGR over the last five years. In Q4 and fiscal year 2020, no customer accounted for 10% or more of sales. In the fourth quarter, Cohu's gross margin was 45%.Operating expenses were $51.7 million and lower than guidance as we continue to optimize our expense structure. COVID-19-driven temporary cost reductions were lifted at the beginning of November. Fourth quarter non-GAAP operating income was 19.4% of revenue and adjusted EBITDA was 20.9%. Return on invested capital was approximately 54% in the fourth quarter and approximately 26% for the full fiscal year 2020. The Q4 results exceeded our new target model objective to make investments with ROIC of 30% or higher. Cohu's non-GAAP effective tax rate for Q4 was approximately 11% and lower than guidance primarily as a result of losses generated in Europe, combined with U.S. income offset by NOLs. Non-GAAP EPS for the fourth quarter was $0.73 and $1.19 for the full year 2020. Now turning to the business model. We recently introduced a new mid-term target financial model that delivers higher profitability at all revenue points. Our new target model achieved $3.60 of annual EPS on revenue of $940 million versus $3 of EPS in our previous model. This represents a 20% increase in profitability at target revenue. On a quarterly basis, the new model reflects an increase in EPS of $0.10 growing to $0.15 at target revenue of $235 million. Gross margin expands with higher revenue and operating expenses are reduced from the previous model, but sufficient to support product development and other business investments. The com
[ "ompounding the opportunity for selling RF, display driver and power management IC testers, handlers, and contactors. But the Cohu story is not limited to 5G. As mentioned earlier, we're capturing new customer opportunities in RF transceivers, Wi-Fi 6, general IoT, and even application processor test with some of these being new additions to our addressable market. Last year, we saw new U.S. export restrictions to Huawei. I believe everyone understands that smartphone demand is increasing. There has been a redistribution of business that translates into incremental orders for Cohu products from customers where we have greater share in new opportunities, particularly in China.\nThere are significant positive trends in the Automotive segment, starting with many auto companies suggesting a complete transition to EV technology in the coming decade, and significant government mandates to go carbon-neutral in China, Europe, and the U.S. Another exciting trend is the rapid adoption of ADAS technologies in vehicles, which expands the use of processors, sensors, microcontrollers, displays and RF ICs. We believe our sales growth to the Automotive segment will benefit about equally from IC content growth in a projected vehicle SAR in the mid-teens this year.\nWith the successful integration of Xcerra now behind us, we held an Analyst and Investor Conference early December describing a new target financial model in the path to 14% revenue CAGR to $940 million and 23% operating income over the mid-term. This comes from enabling testing of new high growth technologies in RF, battery management and ADAS processors, in gaining traction in automated optical inspection.\nNow, I'd like to turn it over to Jeff to provide details on fourth quarter results and share first quarter guidance.\nJeffrey D. Jones -- Vice President, Finance and Chief Financial Officer\nThanks, Luis. Before I walk through the Q4 results and Q1 guidance, please note that my comments that follow all refer to non-GAAP figures. Information about the non-GAAP financial measures, including the GAAP to non-GAAP reconciliations and other disclosures are included in the accompanying earnings release and investor presentation which are located on the Investor page of our website.\n", "Now turning to the financial results. Q4 revenue was $202.4 million and $4.9 million higher than the mid-point of our updated guidance range provided on December 1st. Fiscal year 2020 revenue was $636 million, growing 9% over 2019, and with nearly 19% CAGR over the last five years. In Q4 and fiscal year 2020, no customer accounted for 10% or more of sales. In the fourth quarter, Cohu's gross margin was 45%.Operating expenses were $51.7 million and lower than guidance as we continue to optimize our expense structure. COVID-19-driven temporary cost reductions were lifted at the beginning of November.\nFourth quarter non-GAAP operating income was 19.4% of revenue and adjusted EBITDA was 20.9%. Return on invested capital was approximately 54% in the fourth quarter and approximately 26% for the full fiscal year 2020. The Q4 results exceeded our new target model objective to make investments with ROIC of 30% or higher. Cohu's non-GAAP effective tax rate for Q4 was approximately 11% and lower than guidance primarily as a result of losses generated in Europe, combined with U.S. income offset by NOLs. Non-GAAP EPS for the fourth quarter was $0.73 and $1.19 for the full year 2020.\nNow turning to the business model. We recently introduced a new mid-term target financial model that delivers higher profitability at all revenue points. Our new target model achieved $3.60 of annual EPS on revenue of $940 million versus $3 of EPS in our previous model. This represents a 20% increase in profitability at target revenue. On a quarterly basis, the new model reflects an increase in EPS of $0.10 growing to $0.15 at target revenue of $235 million.\nGross margin expands with higher revenue and operating expenses are reduced from the previous model, but sufficient to support product development and other business investments. The com" ]
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1
What was the non-GAAP gross profit for NXPI in Q4 2022
and down in the low 20% range versus quarter four '22. Mobile is expected to be down about in the mid-40% range, both on a year-on-year and sequential basis. Finally, communication infrastructure and other is expected to be about flat, both on a year on year and sequentially. In summary, as we head into 2023, our automotive and core Industrial businesses remained supply constraint in select areas. Within automotive, the increase of global production levels and the secular adoption of xEV are tailwinds to continued content increases. In industrial and IoT, we expect relative strength in the core industrial submarkets as our products enable critical infrastructure and companies to be more efficient. However, the consumer IoT and the mobile segment will continue to be dependent on a cyclical rebound. And lastly, in communications infrastructure, we expect our supply capability to improve against pent-up demand, specifically in our RFID packing solutions, secure access products, and e-government identification. Within the 5G base station markets, growth in '23 will be dependent on the build-out, especially in India. At the same time, we do believe from an external macro perspective, the general demand environment is offering much higher levels of uncertainty than last year. And in the very short term, we are expecting a dip in China due to the spike in infection rates following the policy shift relating to COVID. Additionally, we expect continued cyclical weakness in demand for consumer-oriented products and a potential correction of customer inventory. In this more uncertain demand environment, we will focus on prudently managing what is in our control. And especially while we have plenty of orders, we will continue to very vigilantly manage general inventory to a 1.6 months level, which is about a month's below our long-term target, equaling approximately 500 million of revenue. We intend to maintain that 1.6 months channel inventory in the first quarter, while we are well positioned with our on-hand inventory to increase channel inventory, if and when demand in China evolves. So, far, quarter to date, our distribution sales through in China is off to a slow start as is incorporated in our guidance. Over the midterm, we are cautiously optimistic given customer engagement levels, design win momentum in our strategic focus areas, and a potential rebound in China. And now I would like to pass the call to you, Bill, for a review of our financial performance. Bill Betz -- Chief Financial Officer Thank you, Kurt, and good morning to everyone on today's call. As Kurt has already covered the drivers of revenue during Q4 and provided our revenue outlook for Q1, I will move to the financial highlights. Overall, our Q4 financial performance was very good. Revenue was slightly above the midpoint of our guidance range, and both non-GAAP gross profit and non-GAAP operating profit were above the midpoint of our guidance. I will first provide full year highlights and then move to the Q4 results. Full year revenue for 2022 was 13.21 billion, up 19% year on year. We generated 7.64 billion in non-GAAP gross profit and recorded a non-GAAP gross margin of 57.9%, up 180 basis points year on year as a result of higher internal factory utilization and follow-through on higher revenue, which is at the high end of our long-term financial model. Total non-GAAP operating expenses were 2.86 billion or 21.6% of revenue of our lower long-term financial model. Total non-GAAP operating profit was 4.79 billion, up 32% year on year. This reflects a non-GAAP operating margin of 36.3%, up 340 basis points year on year and above our long-term financial model. Non-GAAP interest expense was 386 million; cash taxes for ongoing operations were 558 million; noncontrolling interests of 46 million; and stock-based compensation, which is not included in our non-GAAP earnings, was 364 million. Full year cash flow highlights include 3.9 billion in cash flow from operations and 1.06 billion in net capex investments, or 8% of revenue, resulting in 2.83 billion of non-GAAP
[ "and down in the low 20% range versus quarter four '22. Mobile is expected to be down about in the mid-40% range, both on a year-on-year and sequential basis.\nFinally, communication infrastructure and other is expected to be about flat, both on a year on year and sequentially. In summary, as we head into 2023, our automotive and core Industrial businesses remained supply constraint in select areas. Within automotive, the increase of global production levels and the secular adoption of xEV are tailwinds to continued content increases. In industrial and IoT, we expect relative strength in the core industrial submarkets as our products enable critical infrastructure and companies to be more efficient.\nHowever, the consumer IoT and the mobile segment will continue to be dependent on a cyclical rebound. And lastly, in communications infrastructure, we expect our supply capability to improve against pent-up demand, specifically in our RFID packing solutions, secure access products, and e-government identification. Within the 5G base station markets, growth in '23 will be dependent on the build-out, especially in India. At the same time, we do believe from an external macro perspective, the general demand environment is offering much higher levels of uncertainty than last year.\nAnd in the very short term, we are expecting a dip in China due to the spike in infection rates following the policy shift relating to COVID. Additionally, we expect continued cyclical weakness in demand for consumer-oriented products and a potential correction of customer inventory. In this more uncertain demand environment, we will focus on prudently managing what is in our control. And especially while we have plenty of orders, we will continue to very vigilantly manage general inventory to a 1.6 months level, which is about a month's below our long-term target, equaling approximately 500 million of revenue.\nWe intend to maintain that 1.6 months channel inventory in the first quarter, while we are well positioned with our on-hand inventory to increase channel inventory, if and when demand in China evolves. So, far, quarter to date, our distribution sales through in China is off to a slow start as is incorporated in our guidance. Over the midterm, we are cautiously optimistic given customer engagement levels, design win momentum in our strategic focus areas, and a potential rebound in China. And now I would like to pass the call to you, Bill, for a review of our financial performance.\nBill Betz -- Chief Financial Officer\n", "Thank you, Kurt, and good morning to everyone on today's call. As Kurt has already covered the drivers of revenue during Q4 and provided our revenue outlook for Q1, I will move to the financial highlights. Overall, our Q4 financial performance was very good. Revenue was slightly above the midpoint of our guidance range, and both non-GAAP gross profit and non-GAAP operating profit were above the midpoint of our guidance.\nI will first provide full year highlights and then move to the Q4 results. Full year revenue for 2022 was 13.21 billion, up 19% year on year. We generated 7.64 billion in non-GAAP gross profit and recorded a non-GAAP gross margin of 57.9%, up 180 basis points year on year as a result of higher internal factory utilization and follow-through on higher revenue, which is at the high end of our long-term financial model. Total non-GAAP operating expenses were 2.86 billion or 21.6% of revenue of our lower long-term financial model.\nTotal non-GAAP operating profit was 4.79 billion, up 32% year on year. This reflects a non-GAAP operating margin of 36.3%, up 340 basis points year on year and above our long-term financial model. Non-GAAP interest expense was 386 million; cash taxes for ongoing operations were 558 million; noncontrolling interests of 46 million; and stock-based compensation, which is not included in our non-GAAP earnings, was 364 million. Full year cash flow highlights include 3.9 billion in cash flow from operations and 1.06 billion in net capex investments, or 8% of revenue, resulting in 2.83 billion of non-GAAP" ]
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What is the expected gross profit margin for the company in the second quarter of 2021
h will expand the capacity at UMC Fab 12A P6 in Taiwan Tainan Science Park through an innovative win-win partnership model with several leading global customers. The P6 expansion is scheduled for production in the second quarter of 2023 with total investment for the project earmarked at TWD100 billion. In addition to UMC's previously announced 2021 capex of US$1.5 billion, the bulk of which is allocated toward equipment for the company's Fab 12A P5 sites, adjacent to P6. Total UMC investment in the Tainan Science Park will reach approximately TWD150 billion over the next three years. The P6 program is supported by a multiyear's product alignment between UMC and the involved customers that includes a loading protection mechanism that will ensure the P6 capacity is maintained at a healthy loading level. We look forward to leveraging our number one worldwide foundry market position in multiple areas, such as 28-nanometer OLED driver IT production, so we may further strengthen UMC industry relevance and capture new market opportunities, in capturing new market opportunities down the road. Now, let's move on to the second quarter 2021 guidance. Our wafer shipments were increased by 2%. ASP in U.S. dollar were increased by 3% to 4%. However, the surging NT dollar headwind may potentially offset benefits on Q2 shipments increase and ASP growth. Gross profit margin were a challenge 30%. Capacity utilization will be at 100%. Our 2021 cash-based capex will be budgeted at $2.3 billion, as Chi-Tung mentioned earlier. That conclude my comments. Thank you all for your attention. Now we are ready for question. Questions and Answers: Operator Yes, thank you President Wang.[Operator Instructions] Our first question is coming from Randy Abrams from Credit Suisse. Go ahead please, Randy. Randy Abrams -- Credit Suisse -- Analyst Okay. Yes, thank you. Congratulations on the result and margin improvement. First question I want to ask on the capacity expansion. Could you discuss the amount of capacity for the Fab 12A Phase 5 with the capex raise? And also how much capacity is planned for Phase 6 with the TWD100 billion plan and if there is a framework for total capex, if you also expect any spending to continue in China or other facilities. If there is a view the current year's spend may continue around this level for the next couple of years? Chi-Tung Liu -- Chief Financial Officer So Randy, for P6 alone, the total capex is around TWD100 billion. And it's likely -- the spending is likely to spread out through over the next three years, so, starting from latter part of this year, bulk of that in 2022 and also nearly one-third in 2023. So that will be the key part of our capex over the next three years. And for the original budget of TWD1.5 billion, the bulk of that will go to the 10,000 wafer 28-nanometer capacity per month at P5. That's already ongoing. And we are seeing the contribution earlier, maybe as early as next year For Xiamen, we are also already reaching to the target -- closing to the target level of 25,000, wafer per month. And as you recall, it was about, 17,000, 18,000 wafer by -- about the same time last year. But through the extension, now it's close to the focus of the capacity right now. So maybe Jason, you want to add to few more? Jason Wang -- Director and President I think the other data point is for the Tainan facility, after the P5, will be about 90,000 wafer capacity, total for the Tainan site, the 12A. And by adding the P6, we'll be on top of the 90,000. So we are approaching about 120,000 [Speech Overlap]. Randy Abrams -- Credit Suisse -- Analyst Okay. So, to clarify, it's 90K to 0K P5, P6 is 20K. So that brings it to 120. Okay. And the second question, it gets back to the mechanism and this new expansion schedule. If you could talk on how the pricing and margins as you expand and grow the business with the new capacity, how would that impact relative to your current margins where they're getting to 30%. And if you could give an updated view that the depreciation where it was originally on that kind of nice down tren
[ "h will expand the capacity at UMC Fab 12A P6 in Taiwan Tainan Science Park through an innovative win-win partnership model with several leading global customers. The P6 expansion is scheduled for production in the second quarter of 2023 with total investment for the project earmarked at TWD100 billion.\nIn addition to UMC's previously announced 2021 capex of US$1.5 billion, the bulk of which is allocated toward equipment for the company's Fab 12A P5 sites, adjacent to P6. Total UMC investment in the Tainan Science Park will reach approximately TWD150 billion over the next three years. The P6 program is supported by a multiyear's product alignment between UMC and the involved customers that includes a loading protection mechanism that will ensure the P6 capacity is maintained at a healthy loading level.\nWe look forward to leveraging our number one worldwide foundry market position in multiple areas, such as 28-nanometer OLED driver IT production, so we may further strengthen UMC industry relevance and capture new market opportunities, in capturing new market opportunities down the road. Now, let's move on to the second quarter 2021 guidance. Our wafer shipments were increased by 2%. ASP in U.S. dollar were increased by 3% to 4%. However, the surging NT dollar headwind may potentially offset benefits on Q2 shipments increase and ASP growth.\nGross profit margin were a challenge 30%. Capacity utilization will be at 100%. Our 2021 cash-based capex will be budgeted at $2.3 billion, as Chi-Tung mentioned earlier. That conclude my comments. Thank you all for your attention. Now we are ready for question.\nQuestions and Answers:\nOperator\nYes, thank you President Wang.[Operator Instructions] Our first question is coming from Randy Abrams from Credit Suisse. Go ahead please, Randy.\nRandy Abrams -- Credit Suisse -- Analyst\nOkay. Yes, thank you. Congratulations on the result and margin improvement. First question I want to ask on the capacity expansion. Could you discuss the amount of capacity for the Fab 12A Phase 5 with the capex raise? And also how much capacity is planned for Phase 6 with the TWD100 billion plan and if there is a framework for total capex, if you also expect any spending to continue in China or other facilities. If there is a view the current year's spend may continue around this level for the next couple of years?\n", "Chi-Tung Liu -- Chief Financial Officer\nSo Randy, for P6 alone, the total capex is around TWD100 billion. And it's likely -- the spending is likely to spread out through over the next three years, so, starting from latter part of this year, bulk of that in 2022 and also nearly one-third in 2023. So that will be the key part of our capex over the next three years.\nAnd for the original budget of TWD1.5 billion, the bulk of that will go to the 10,000 wafer 28-nanometer capacity per month at P5. That's already ongoing. And we are seeing the contribution earlier, maybe as early as next year\nFor Xiamen, we are also already reaching to the target -- closing to the target level of 25,000, wafer per month. And as you recall, it was about, 17,000, 18,000 wafer by -- about the same time last year. But through the extension, now it's close to the focus of the capacity right now. So maybe Jason, you want to add to few more?\nJason Wang -- Director and President\nI think the other data point is for the Tainan facility, after the P5, will be about 90,000 wafer capacity, total for the Tainan site, the 12A. And by adding the P6, we'll be on top of the 90,000. So we are approaching about 120,000 [Speech Overlap].\nRandy Abrams -- Credit Suisse -- Analyst\nOkay. So, to clarify, it's 90K to 0K P5, P6 is 20K. So that brings it to 120. Okay. And the second question, it gets back to the mechanism and this new expansion schedule. If you could talk on how the pricing and margins as you expand and grow the business with the new capacity, how would that impact relative to your current margins where they're getting to 30%. And if you could give an updated view that the depreciation where it was originally on that kind of nice down tren" ]
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what company was approved
BEIJING, China (CNN) -- Every day, tens of thousands of fertilized hen eggs are delivered to Sinovac laboratories in Beijing. Each egg is infected with the H1N1 virus, then incubated for three days. White-coated employees examine every egg individually before the virus is extracted and used to make a vaccine. Vials of H1N1 vaccine before they are labeled and packaged. Sinovac Biotech Ltd. was the first company in the world to successfully complete clinical trials for an H1N1 vaccine. It was also the first company approved by the Chinese government to produce millions of doses for the public. China is set to become the first country to begin mass inoculations sometime around the beginning of October. According to Sinovac CEO Yin Weidong, the secret lies in years of vaccine research and development. Sinovac was the first and only company ever to create a vaccine for Severe Acute Respiratory Syndrome (SARS), the worldwide pandemic that left almost 350 people in China dead. The SARS vaccine was never used. By the time it was discovered, the outbreak had subsided. However, the breakthrough has enabled Sinovac to stay ahead of the curve. Watch as the H1N1 vaccine is produced » "The SARS vaccine helped us achieve the H5N1 (bird flu) vaccine, which helped us get the H1N1 vaccine," says CEO Yin Weidong. "That's why we could be so fast and be the first." Since Sinovac's success, at least two other Chinese companies and several around the world have also produced H1N1 vaccines. China has reportedly ordered 3.3 million vaccines from Sinovac, 4 million from Hualan Biological and another 3 million from the Shanghai Institute of Biological Sciences. According to Yin, the main challenge for China will be providing enough vaccines for everyone. "A country with 1.3 billion people needs 1.3 billion vaccines," he says. Watch report on China's inoculation preparations » The Chinese government has long warned an outbreak of H1N1 could be catastrophic in a massive country with an underdeveloped health system. In recent weeks, the instances of H1N1 infections have risen dramatically throughout the mainland. There have been more than 9,000 cases of the H1N1 virus in China so far, and more than half of them have happened in the last few weeks alone. "It's basically affected all provinces of China and we're worried because of the sheer number of people involved," says Vivian Tan, communications director for the World Health Organization in China. "It's moving from the urban and coastal areas into more rural remote areas." According to the WHO, the rapid acceleration of H1N1 is occurring in part because flu season is starting, the weather is cooling down and school is back in session. More than 80 percent of China's swine flu cases have occurred in schools or due to school-related activities. China has had perhaps the most extreme and active response to the virus than any other country in the world. For months, masked Chinese officials have boarded international flights upon arrival, checking all passengers' temperatures and administered health surveys before granting entry. Thousands have been quarantined, including entire flights and school groups. Health authorities have heavily publicized the risks posed by the virus and rolled out a Traditional Chinese Medicine Treatment plan, as an alternative to the vaccines produced by Sinovac and others. Yet, some Chinese citizens remain skeptical that a vaccine is even necessary in the first place. "It doesn't seem like my baby is going to catch the swine flu," says one mother at a hospital in central Beijing. "And what if it affects his health in the future? I'm just going to avoid crowded areas." Like any vaccine, the WHO has warned the H1N1 vaccine may have negative side effects. Sinovac plans to track and test patients for several years after vaccinations are administered to determine if there are any dangers. Ultimately, in China, the central concern remains that the H1N1 virus itself could expand and spin out of control. According to Tan of the WHO, "I think one of our biggest fears is that (the H1N1 virus) could re-assort with
[ "BEIJING, China (CNN) -- Every day, tens of thousands of fertilized hen eggs are delivered to Sinovac laboratories in Beijing. Each egg is infected with the H1N1 virus, then incubated for three days. White-coated employees examine every egg individually before the virus is extracted and used to make a vaccine. Vials of H1N1 vaccine before they are labeled and packaged. Sinovac Biotech Ltd. was the first company in the world to successfully complete clinical trials for an H1N1 vaccine. It was also the first company approved by the Chinese government to produce millions of doses for the public. China is set to become the first country to begin mass inoculations sometime around the beginning of October. According to Sinovac CEO Yin Weidong, the secret lies in years of vaccine research and development. Sinovac was the first and only company ever to create a vaccine for Severe Acute Respiratory Syndrome (SARS), the worldwide pandemic that left almost 350 people in China dead. The SARS vaccine was never used. By the time it was discovered, the outbreak had subsided. However, the breakthrough has enabled Sinovac to stay ahead of the curve. Watch as the H1N1 vaccine is produced » \"The SARS vaccine helped us achieve the H5N1 (bird flu) vaccine, which helped us get the H1N1 vaccine,\" says CEO Yin Weidong. \"That's why we could be so fast and be the first.\" Since Sinovac's success, at least two other Chinese companies and several around the world have also produced H1N1 vaccines. China has reportedly ordered 3.3 million vaccines from Sinovac, 4 million from Hualan Biological and another 3 million from the Shanghai Institute of Biological Sciences. According to Yin, the main challenge for China will be providing enough vaccines for everyone. \"A country with 1.3 billion people needs 1.3 billion vaccines,\" he says. Watch report on China's inoculation preparations » The Chinese government has long warned an outbreak of H1N1 could be catastrophic in a massive country with an underdeveloped health system. In recent weeks, the instances of H1N1 infections have risen dramatically throughout the mainland. There have been more than 9,000 cases of the H1N1 virus in China so far, and more than half of them have happened in the last few weeks alone. ", "\"It's basically affected all provinces of China and we're worried because of the sheer number of people involved,\" says Vivian Tan, communications director for the World Health Organization in China. \"It's moving from the urban and coastal areas into more rural remote areas.\" According to the WHO, the rapid acceleration of H1N1 is occurring in part because flu season is starting, the weather is cooling down and school is back in session. More than 80 percent of China's swine flu cases have occurred in schools or due to school-related activities. China has had perhaps the most extreme and active response to the virus than any other country in the world. For months, masked Chinese officials have boarded international flights upon arrival, checking all passengers' temperatures and administered health surveys before granting entry. Thousands have been quarantined, including entire flights and school groups. Health authorities have heavily publicized the risks posed by the virus and rolled out a Traditional Chinese Medicine Treatment plan, as an alternative to the vaccines produced by Sinovac and others. Yet, some Chinese citizens remain skeptical that a vaccine is even necessary in the first place. \"It doesn't seem like my baby is going to catch the swine flu,\" says one mother at a hospital in central Beijing. \"And what if it affects his health in the future? I'm just going to avoid crowded areas.\" Like any vaccine, the WHO has warned the H1N1 vaccine may have negative side effects. Sinovac plans to track and test patients for several years after vaccinations are administered to determine if there are any dangers. Ultimately, in China, the central concern remains that the H1N1 virus itself could expand and spin out of control. According to Tan of the WHO, \"I think one of our biggest fears is that (the H1N1 virus) could re-assort with" ]
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What is the current market share of ACMR in China and outside China
market share has been pretty high. Right. So, inevitably, you need to spend to more new product for portfolio as you just mentioned like ECP advanced packaging etc. But on the other hand, previously that you are also trying to penetrating into overseas, leading semiconductor customers. So I'm just wondering, which targets are the priority right now and could you kindly give us some update on your expansion in the overseas market. Thank you. David Wang -- Chief Executive Officer Great, thanks. Okay. I should say both important right both the market in China is important and also outside China important and actually our long-term goal. Let me give you the long-term goal. We are trying to make our revenue 50% come from China market and 50% from outside China market and that's why we are actively agile higher building our strong team in the US to approaching leading customer US also enhance our team in Taiwan too right and reason. Also we have further enhance our sales team in Europe, we believe our core our proprietary technology like SAPS and TEBO for PDD cleaning with our energy and also a powerful product in our, with our I call so Vegas process and there also. And we, I should say that we also add additional new function, new requirement, and for the further strengthening our community product right among those 2. That was all innovation in hand, we are trying to first the demonstrate probably China and Korea market and we believe our product eventually or think in Apache. There are major companies in the world. We only key customer they neither technology, right. As I've said, again our proprietary technology and there is a real unique approach we're providing and with all the benefit we think are essential product we're getting into the market outside China and we're very confident and we see that a big movement and also duty as ordered in the US. So it. David, you want to participate better in a growth market in the US and also obviously you can see very growing market in Taiwan. And also, you know, and the potential from New York right if you can talk about the too. So as ACM today are really again equal important even revenue major compound in China right now. However, we do see our future growth. And also we're coming from outside China. Donnie Teng -- Nomura Instinet I have a follow-up for that, So, previously impression is like you put more focus on expanding overseas customers but in past few quarters is like, it looks like our new products or our new equipment expansion to be faster than expected, so we put more emphasize there, I'm just wondering if this kind of situation crack way to say or does the mean that we --our schedule with the offers these customers continuing to be postponed? David Wang -- Chief Executive Officer Well, again as say we are working closely right again as now there I sir. The final mature, not a final maturity yet, but again I don't think I think when we can progress. Right. And when the timing and the reaching was announced that at this moment is that we are very, very working closely with the customer. Mark McKechnie -- Chief Financial Officer Great. We should probably move on to the next question please. Operator [Operator Instructions]. We will now limit the question to one per participant to allow for other questions to be addressed. Our next question comes from the line of Charlie Chen from Credit Suisse. Your line is open. Please go ahead. Charlie Chen -- Credit Suisse Okay. Thank you, Lisa Dalian, so David, you give some color on SMIC and one piece. And can you talk a little bit about the XMT please. Because, I'm just curious as it has been doing pretty well with all the other major guys in China, but it seems that the business is a little bit lower with the XMT thank you. David Wang -- Chief Executive Officer Yeah, actually we do see that business pick up. Right. And probably the to location lines of aging the right and again we're working close with them. I will see that there some some I call order we already and from Beijing, the new factory to. I know they have a bigger 4
[ "market share has been pretty high. Right. So, inevitably, you need to spend to more new product for portfolio as you just mentioned like ECP advanced packaging etc. But on the other hand, previously that you are also trying to penetrating into overseas, leading semiconductor customers. So I'm just wondering, which targets are the priority right now and could you kindly give us some update on your expansion in the overseas market. Thank you.\nDavid Wang -- Chief Executive Officer\nGreat, thanks. Okay. I should say both important right both the market in China is important and also outside China important and actually our long-term goal. Let me give you the long-term goal. We are trying to make our revenue 50% come from China market and 50% from outside China market and that's why we are actively agile higher building our strong team in the US to approaching leading customer US also enhance our team in Taiwan too right and reason. Also we have further enhance our sales team in Europe, we believe our core our proprietary technology like SAPS and TEBO for PDD cleaning with our energy and also a powerful product in our, with our I call so Vegas process and there also. And we, I should say that we also add additional new function, new requirement, and for the further strengthening our community product right among those 2. That was all innovation in hand, we are trying to first the demonstrate probably China and Korea market and we believe our product eventually or think in Apache. There are major companies in the world. We only key customer they neither technology, right. As I've said, again our proprietary technology and there is a real unique approach we're providing and with all the benefit we think are essential product we're getting into the market outside China and we're very confident and we see that a big movement and also duty as ordered in the US. So it. David, you want to participate better in a growth market in the US and also obviously you can see very growing market in Taiwan. And also, you know, and the potential from New York right if you can talk about the too. So as ACM today are really again equal important even revenue major compound in China right now. However, we do see our future growth. And also we're coming from outside China.\nDonnie Teng -- Nomura Instinet\n", "I have a follow-up for that, So, previously impression is like you put more focus on expanding overseas customers but in past few quarters is like, it looks like our new products or our new equipment expansion to be faster than expected, so we put more emphasize there, I'm just wondering if this kind of situation crack way to say or does the mean that we --our schedule with the offers these customers continuing to be postponed?\nDavid Wang -- Chief Executive Officer\nWell, again as say we are working closely right again as now there I sir. The final mature, not a final maturity yet, but again I don't think I think when we can progress. Right. And when the timing and the reaching was announced that at this moment is that we are very, very working closely with the customer.\nMark McKechnie -- Chief Financial Officer\nGreat. We should probably move on to the next question please.\nOperator\n[Operator Instructions]. We will now limit the question to one per participant to allow for other questions to be addressed. Our next question comes from the line of Charlie Chen from Credit Suisse. Your line is open. Please go ahead.\nCharlie Chen -- Credit Suisse\nOkay. Thank you, Lisa Dalian, so David, you give some color on SMIC and one piece. And can you talk a little bit about the XMT please. Because, I'm just curious as it has been doing pretty well with all the other major guys in China, but it seems that the business is a little bit lower with the XMT thank you.\nDavid Wang -- Chief Executive Officer\nYeah, actually we do see that business pick up. Right. And probably the to location lines of aging the right and again we're working close with them. I will see that there some some I call order we already and from Beijing, the new factory to. I know they have a bigger 4" ]
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What was the year-over-year growth rate of Bigo Live's live streaming revenues in the third quarter of 2020
cial medium for consumer entertainment and social networking. As such, video is occupying an increasingly significant portion of users' time. During the third quarter of 2020, our platforms continue to gain user attraction, usage and engagement. Despite Indian government's measures to block certain Chinese-owned apps in its local market and other geopolitical risks, we achieved rapid growth in other regions and our global MAUs remained relatively stable, sliding only slightly by 4% year-over-year to 390.1 million. Such accomplishment is a result of our unwavering commitment toward globalization, proactive penetration into multiple overseas markets and reduced reliance on any single market. By overcoming geopolitical challenges, we have not only validated our business models' resilience, but also laid a solid foundation for the continued implementation of our global dual-engine growth strategy, driven by live streaming and short-form video. [Foreign Speech] Bigo Live maintained its robust growth trajectory during the third quarter 2020, and its MAUs outside of India grew to 26.5 million, representing an increase of 58% year-over-year and 16% quarter-over-quarter. [Foreign Speech] Bigo Live also remained focus on its business development efforts in several key markets during the quarter, including North America, Europe, the Middle East and regions of the Eastern Pacific, further diversifying its geographic coverage and thus reducing its reliance on any single market. Consequently, Bigo's live streaming revenues increased by 131% year-over-year to RMB3.28 billion, which is US$483 million. More specifically, on a year-over-year basis, Bigo's live streaming revenues from developed markets grew by 272%. European markets grew by 270% and Eastern Pacific regions grew by 231% year-over-year. [Foreign Speech] Our long-term commitment to localizing our overseas operations and team building has been instrumental to the success of Bigo Live. As the pandemic situation continued to evolve rapidly around the world, our internationally distributed team and extensive experience in multicultural and multilingual cross-regional operations enable us to quickly adapt to the changes in market dynamics and user needs. These efforts also allowed us to further strengthen Bigo Live's geographic expansion and launch highly localized campaigns during the pandemic. In Turkey, for example, Bigo Live introduced a large number of local KOLs, key opinion leaders on which platform during the stay at home period and reaching its content invigorating the interactions between Turkish users and their favorite KOLs doing live streaming sessions and significantly hosting social engagement on its platform. As a result, Bigo Live's user base in Turkey expanded significantly within a very short period of time. [Foreign Speech] Secondly, we implemented a series of product upgrades and marketing tactics to boost our user engagement continuously. During the third quarter, for example, we released a number of product upgrades and optimization designed to satisfy users' needs for online social networking, significantly boosting the number of users hosting live streaming sessions or posting content. Additionally, we continue to see high levels of user engagement across the platform with a percentage of total users who actively posted content consistently exceeding 10% in the period, and the number of user interactions as measured by likes and comments achieving high-single-digit growth on a sequential basis. [Foreign Speech] Our short-form video platform, Likee, also accelerated its global user base expansion in the third quarter. Despite Indian government's measures to block certain Chinese-owned apps in its local market and the resulting short-term impact on our operations, Likee maintained its solid user growth and its MAUs outside of India grew to 97 million, representing an increase of 147% year-over-year and 15.5% quarter-over-quarter. More specifically, Likee's MAUs in the Middle East, North America and Europe all achieved significant growth in the third quarter,
[ "cial medium for consumer entertainment and social networking. As such, video is occupying an increasingly significant portion of users' time.\nDuring the third quarter of 2020, our platforms continue to gain user attraction, usage and engagement. Despite Indian government's measures to block certain Chinese-owned apps in its local market and other geopolitical risks, we achieved rapid growth in other regions and our global MAUs remained relatively stable, sliding only slightly by 4% year-over-year to 390.1 million. Such accomplishment is a result of our unwavering commitment toward globalization, proactive penetration into multiple overseas markets and reduced reliance on any single market. By overcoming geopolitical challenges, we have not only validated our business models' resilience, but also laid a solid foundation for the continued implementation of our global dual-engine growth strategy, driven by live streaming and short-form video.\n[Foreign Speech]\nBigo Live maintained its robust growth trajectory during the third quarter 2020, and its MAUs outside of India grew to 26.5 million, representing an increase of 58% year-over-year and 16% quarter-over-quarter.\n[Foreign Speech]\nBigo Live also remained focus on its business development efforts in several key markets during the quarter, including North America, Europe, the Middle East and regions of the Eastern Pacific, further diversifying its geographic coverage and thus reducing its reliance on any single market. Consequently, Bigo's live streaming revenues increased by 131% year-over-year to RMB3.28 billion, which is US$483 million. More specifically, on a year-over-year basis, Bigo's live streaming revenues from developed markets grew by 272%. European markets grew by 270% and Eastern Pacific regions grew by 231% year-over-year.\n[Foreign Speech]\nOur long-term commitment to localizing our overseas operations and team building has been instrumental to the success of Bigo Live. As the pandemic situation continued to evolve rapidly around the world, our internationally distributed team and extensive experience in multicultural and multilingual cross-regional operations enable us to quickly adapt to the changes in market dynamics and user needs. These efforts also allowed us to further strengthen Bigo Live's geographic expansion and launch highly localized campaigns during the pandemic.\n", "In Turkey, for example, Bigo Live introduced a large number of local KOLs, key opinion leaders on which platform during the stay at home period and reaching its content invigorating the interactions between Turkish users and their favorite KOLs doing live streaming sessions and significantly hosting social engagement on its platform. As a result, Bigo Live's user base in Turkey expanded significantly within a very short period of time.\n[Foreign Speech]\nSecondly, we implemented a series of product upgrades and marketing tactics to boost our user engagement continuously. During the third quarter, for example, we released a number of product upgrades and optimization designed to satisfy users' needs for online social networking, significantly boosting the number of users hosting live streaming sessions or posting content. Additionally, we continue to see high levels of user engagement across the platform with a percentage of total users who actively posted content consistently exceeding 10% in the period, and the number of user interactions as measured by likes and comments achieving high-single-digit growth on a sequential basis.\n[Foreign Speech]\nOur short-form video platform, Likee, also accelerated its global user base expansion in the third quarter. Despite Indian government's measures to block certain Chinese-owned apps in its local market and the resulting short-term impact on our operations, Likee maintained its solid user growth and its MAUs outside of India grew to 97 million, representing an increase of 147% year-over-year and 15.5% quarter-over-quarter. More specifically, Likee's MAUs in the Middle East, North America and Europe all achieved significant growth in the third quarter," ]
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What is the growth rate of wireless broadband in Nigeria
um and so that's the first sign, I think, David, that we see. Because as I mentioned and as what you all know, spectrum is the lifeblood of being able to roll out any of these new technologies and for 5G to be able to truly realize the full 5G experience in terms of speed and latency, you need significant amounts of it. And so I look at -- and in my comment before on Europe, what we've seen in certain of those critical markets, critical countries in Europe, really stepping up to launching a lot of new spectrum and I think that's one of the reasons that we're really now starting to see some come outsized growth in those particular markets. Something that we hadn't seen for several years and that was really -- that really drove us to looking at some of the growth curves in that market, for us to even lean into some of the assets that are there and so that's just kind of the first sign of it, I think. You look at markets like Africa, though, I mean Africa, I think Rod had mentioned they're kind of in the 8%, looking at growing to the 9%, even kind of ending out the year. You look at markets like Nigeria and things like that, where we're talking kind of double-digit growth rate. I mean that's just because the wireline presence there just doesn't exist and wireless broadband is everything that our customers are investing in, so you have slightly different reasons for some of the growth. Many of the markets are just getting into 4G, so we're still on the front of that 4G curve. And Latin America, you look at Brazil growth, you look at the Mexico growth, I mean, they're in the kind of the 7%, 8% kind of growth range. So we're really excited about what we're seeing outside of the United States and what's really driving it clearly is more spectrum, more wireless penetration. Unfortunately, the pandemic has actually driven even more of a need for connectivity. And so we're seeing even more wireless usage in those markets in particular, again, because the wireline markets are just so foreign and nonexistent and so we would expect to see Europe kicking in with 5G. Africa continued growth as 4G becomes more of a reality there. Latin America, similarly, 4G into 5G ultimately and even in India, the growth there is strong. We've got the churn issues that we have to deal with in that particular market and we're getting our arms around and making sure that we really nail those there, but it's not a growth issue, they've got new spectrum, they've got 4G. You see the likes of Facebook. You see all of the big foreign investments that's coming into the marketplace and so it's really an exciting market from a broadband wireless perspective. So I mean that kind of gives it on a global scale and from a supply chain perspective, we don't see any impact on our side from a supply chain perspective at this point. I mean our customers are the ones that are kind of frontline with issues that they may have from some of the OEMs and things like that. But at least from our perspective, we're not seeing any impact from that perspective. David Barden -- Bank of America Merrill Lynch -- Analyst OK. Great. Thanks, Tom. I appreciate it. Tom Bartlett -- President and Chief Executive Officer Yeah. Sure, Dave. Operator Your next question comes from the line of Tim Long from Barclays. Please go ahead. Tim Long -- Barclays Investment Bank -- Analyst Thank you. I was hoping you could talk a little bit more. You talked about edge compute a little bit in your prepared remarks. Could you just kind of update us on how you're thinking about kind of the business model for AMT? And obviously, this is a longer-term trend, any more views on data center investments and how you think you might monetize that? And then I have a follow-up. Tom Bartlett -- President and Chief Executive Officer OK. No, I mean let me take a step back a little bit in terms of kind of what we're seeing from an evolution perspective, if you will. First of all, this whole market is, in fact, developing. With regards to specific to the edge, we are at kind of the beginning and we're seeing certain eleme
[ "um and so that's the first sign, I think, David, that we see. Because as I mentioned and as what you all know, spectrum is the lifeblood of being able to roll out any of these new technologies and for 5G to be able to truly realize the full 5G experience in terms of speed and latency, you need significant amounts of it. And so I look at -- and in my comment before on Europe, what we've seen in certain of those critical markets, critical countries in Europe, really stepping up to launching a lot of new spectrum and I think that's one of the reasons that we're really now starting to see some come outsized growth in those particular markets.\nSomething that we hadn't seen for several years and that was really -- that really drove us to looking at some of the growth curves in that market, for us to even lean into some of the assets that are there and so that's just kind of the first sign of it, I think. You look at markets like Africa, though, I mean Africa, I think Rod had mentioned they're kind of in the 8%, looking at growing to the 9%, even kind of ending out the year. You look at markets like Nigeria and things like that, where we're talking kind of double-digit growth rate. I mean that's just because the wireline presence there just doesn't exist and wireless broadband is everything that our customers are investing in, so you have slightly different reasons for some of the growth.\nMany of the markets are just getting into 4G, so we're still on the front of that 4G curve. And Latin America, you look at Brazil growth, you look at the Mexico growth, I mean, they're in the kind of the 7%, 8% kind of growth range. So we're really excited about what we're seeing outside of the United States and what's really driving it clearly is more spectrum, more wireless penetration. Unfortunately, the pandemic has actually driven even more of a need for connectivity.\n", "And so we're seeing even more wireless usage in those markets in particular, again, because the wireline markets are just so foreign and nonexistent and so we would expect to see Europe kicking in with 5G. Africa continued growth as 4G becomes more of a reality there. Latin America, similarly, 4G into 5G ultimately and even in India, the growth there is strong. We've got the churn issues that we have to deal with in that particular market and we're getting our arms around and making sure that we really nail those there, but it's not a growth issue, they've got new spectrum, they've got 4G.\nYou see the likes of Facebook. You see all of the big foreign investments that's coming into the marketplace and so it's really an exciting market from a broadband wireless perspective. So I mean that kind of gives it on a global scale and from a supply chain perspective, we don't see any impact on our side from a supply chain perspective at this point. I mean our customers are the ones that are kind of frontline with issues that they may have from some of the OEMs and things like that.\nBut at least from our perspective, we're not seeing any impact from that perspective.\nDavid Barden -- Bank of America Merrill Lynch -- Analyst\nOK. Great. Thanks, Tom. I appreciate it.\nTom Bartlett -- President and Chief Executive Officer\nYeah. Sure, Dave.\nOperator\nYour next question comes from the line of Tim Long from Barclays. Please go ahead.\nTim Long -- Barclays Investment Bank -- Analyst\nThank you. I was hoping you could talk a little bit more. You talked about edge compute a little bit in your prepared remarks. Could you just kind of update us on how you're thinking about kind of the business model for AMT? And obviously, this is a longer-term trend, any more views on data center investments and how you think you might monetize that? And then I have a follow-up.\nTom Bartlett -- President and Chief Executive Officer\nOK. No, I mean let me take a step back a little bit in terms of kind of what we're seeing from an evolution perspective, if you will. First of all, this whole market is, in fact, developing. With regards to specific to the edge, we are at kind of the beginning and we're seeing certain eleme" ]
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What was once the hub of the country's Sunni insurgency?
Coalition troops on Monday formally handed over security control of Iraq's Anbar province -- once the hub of the country's Sunni insurgency, to Iraqis on Monday. A U.S. soldier on patrol in Ramadi's market earlier this year. U.S. troops will remain in the province to support Iraqi forces. President George W. Bush described the transfer as a major victory against al-Qaeda extremists who once held sway in the area. "Today, Anbar is no longer lost to al Qaeda -- it is al Qaeda that lost Anbar," he said in a statement. Once dominated by Sunni insurgents, Anbar has been the scene of many attacks on U.S.-led troops in Iraq. Now a bastion of tribal opposition, it is also the scene of an internal Sunni political struggle between the Iraqi Islamic Party, one of Iraq's main Sunni parties, and the Awakening movement, the first anti-al Qaeda in Iraq movement established in the country. More than 25,000 U.S. troops serve in the sprawling Anbar province west of Baghdad; most of them Marines. They will remain for the time being but will shift their mission to supporting Iraqi forces, when needed The transfer is a "major progress" for all of Iraq, said Brigadier Gen. David Perkins, the spokesman for the Multi-National Force in Iraq. The transfer ceremony took place in Ramadi, the capital of the western province, and was attended by Iraqi officials and U.S. military brass. Watch U.S., Iraqi officials perform transfer » "We are all well aware of what the security situation was in Anbar even a year ago," Perkins said. "And the fact that that has been able to be turned around, that the Iraqi citizens that live there want to stand up on their own, [that] they want to take control of the province on their own ... it's a major progress not only for Anbar, but for all of Iraq." Anbar is the 11th of Iraq's 18 provinces to revert to local security control, but is the first Sunni-dominated one. The move comes amid a big drop in violence in Iraq and calls from Iraqis for the United States to come up with a troop withdrawal timetable. The other provinces that have transitioned to Iraqi security control are Duhuk, Irbil and Sulaimaniya in the Kurdish region, and Karbala, Najaf, Qadisiya, Muthanna, Thiqar, Basra, and Maysan in the Shiite south. CNN's Jomana Karadsheh and Arwa Damon in Baghdad contributed to this report.
[ "Coalition troops on Monday formally handed over security control of Iraq's Anbar province -- once the hub of the country's Sunni insurgency, to Iraqis on Monday. A U.S. soldier on patrol in Ramadi's market earlier this year. U.S. troops will remain in the province to support Iraqi forces. President George W. Bush described the transfer as a major victory against al-Qaeda extremists who once held sway in the area. \"Today, Anbar is no longer lost to al Qaeda -- it is al Qaeda that lost Anbar,\" he said in a statement. Once dominated by Sunni insurgents, Anbar has been the scene of many attacks on U.S.-led troops in Iraq. Now a bastion of tribal opposition, it is also the scene of an internal Sunni political struggle between the Iraqi Islamic Party, one of Iraq's main Sunni parties, and the Awakening movement, the first anti-al Qaeda in Iraq movement established in the country. More than 25,000 U.S. troops serve in the sprawling Anbar province west of Baghdad; most of them Marines. They will remain for the time being but will shift their mission to supporting Iraqi forces, when needed The transfer is a \"major progress\" for all of Iraq, said Brigadier Gen. David Perkins, the spokesman for the Multi-National Force in Iraq. The transfer ceremony took place in Ramadi, the capital of the western province, and was attended by Iraqi officials and U.S. military brass. Watch U.S., Iraqi officials perform transfer » \"We are all well aware of what the security situation was in Anbar even a year ago,\" Perkins said. \"And the fact that that has been able to be turned around, that the Iraqi citizens that live there want to stand up on their own, [that] they want to take control of the province on their own ... it's a major progress not only for Anbar, but for all of Iraq.\" Anbar is the 11th of Iraq's 18 provinces to revert to local security control, but is the first Sunni-dominated one. The move comes amid a big drop in violence in Iraq and calls from Iraqis for the United States to come up with a troop withdrawal timetable. The other provinces that have transitioned to Iraqi security control are Duhuk, Irbil and Sulaimaniya in the Kurdish region, and Karbala, Najaf, Qadisiya, Muthanna, Thiqar, Basra, and Maysan in the Shiite south. ", "CNN's Jomana Karadsheh and Arwa Damon in Baghdad contributed to this report." ]
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What was the gross margin for the EMS business in 2020
with my key customer, they really appreciate how Taiwan was managed throughout the pandemic, how the Taiwan semiconductor companies were managing the delivery in a very adverse supply chain environment, throughout the whole 2020. And I believe that would carry us far. For the partner that we support, they're gaining market share. And I think this is another reason that I believe not only we will grow or capture a huge chunk of the semiconductor growing logic space, we will also force and enable more outsourcing for IDMs. That I believe that in the next few years, we will enjoy a higher growth rate as a result of all of these factors. Charlie Chan -- Morgan Stanley -- Analyst Thanks for the insight, for the insight, Dr. Tien. I think that's a very clear. I mean, I also have a follow up, Roland's question about your gross margin trend. Sorry, I am not sure if you did give the gross margin guidance for this year? Can you kind of breakdown by your ATM business and the EMS business, the gross margin trend in 2021? And also, I know you don't go comment about the pricing, right? But may I know for flip chip and testing, do you expect the price to go up this year? Tien Wu -- Group Chief Operating Officer Joseph, you will comment on the gross profit? Joseph Tung -- Chief Financial Officer As I mentioned earlier on, I think the -- for 2021, I think we will continue to see margin improvement at the gross level with the steady or improving opex ratio. I think also on the operating margin, we'll continue to see improvement. And that comes from a lot of the efforts that we put in, in terms of improving our efficiency, creating synergy with SPIL, and also the higher loading facility, of course, it helps, a friendlier pricing environment also help. I think all these put together give us a very high confidence that we will be improving our margin going forward for ATM. As far as EMS's perspective, I think the more relevant margin is at the operating level. Because of the different product mix, it will have quite a bit of fluctuations on the gross level. So the more relevant or more meaningful benchmark is really on the operating level. For that, we are targeting a 4% operating margin for EMS business. That's slightly up from what we achieved in previous year, which was at 3.8%. Tien Wu -- Group Chief Operating Officer Okay, for the other line of business, flip chip, the fan-out and all of the others, we're also seeing a more friendly environment, but not as friendly as wirebond, they're friendly. Okay, I will not comment anymore. Charlie Chan -- Morgan Stanley -- Analyst That's OK. Okay, thanks, gentlemen. It's very helpful, thank you. Operator Next one to ask question, Sebastian Hou, CLSA. Sebastian Hou -- CLSA -- Analyst Thanks for taking my questions. So just follow on the pricing and the margin, that part. Just if I look at your Q4 2020 margin that has improved, I think there is a combination of the utilization rate improved, synergies, and then pricing. But looking now into your 1Q guidance, revenue and margin will be similar to last quarter. So, can we say that the pricing is not a factor anymore in this quarter to drive the margin for improvement? Joseph Tung -- Chief Financial Officer I think it's -- to have a similar margin for first quarter compared to last quarter, it's quite a bit of a challenge itself already, because we are facing further NTD appreciation, which will have a over 1% impact on the margin. We are going through Chinese New Year, and some of the factories are going through annual maintenance. So then we will have less working days. And also, throughout the -- there's a lot of homework that needs to be passed out. Overall, compensation expenses is going to be higher for the quarter. So all the things put together, I think we are doing a pretty good job in maintaining our margin at similar margin from fourth quarter. Tien Wu -- Group Chief Operating Officer I mean, just for clarification, the so-called seasonality is still here. In other words, some of the key customer run their high-volume device for consumer or
[ " with my key customer, they really appreciate how Taiwan was managed throughout the pandemic, how the Taiwan semiconductor companies were managing the delivery in a very adverse supply chain environment, throughout the whole 2020.\nAnd I believe that would carry us far. For the partner that we support, they're gaining market share. And I think this is another reason that I believe not only we will grow or capture a huge chunk of the semiconductor growing logic space, we will also force and enable more outsourcing for IDMs. That I believe that in the next few years, we will enjoy a higher growth rate as a result of all of these factors.\nCharlie Chan -- Morgan Stanley -- Analyst\nThanks for the insight, for the insight, Dr. Tien. I think that's a very clear. I mean, I also have a follow up, Roland's question about your gross margin trend. Sorry, I am not sure if you did give the gross margin guidance for this year? Can you kind of breakdown by your ATM business and the EMS business, the gross margin trend in 2021? And also, I know you don't go comment about the pricing, right? But may I know for flip chip and testing, do you expect the price to go up this year?\nTien Wu -- Group Chief Operating Officer\nJoseph, you will comment on the gross profit?\nJoseph Tung -- Chief Financial Officer\nAs I mentioned earlier on, I think the -- for 2021, I think we will continue to see margin improvement at the gross level with the steady or improving opex ratio. I think also on the operating margin, we'll continue to see improvement. And that comes from a lot of the efforts that we put in, in terms of improving our efficiency, creating synergy with SPIL, and also the higher loading facility, of course, it helps, a friendlier pricing environment also help. I think all these put together give us a very high confidence that we will be improving our margin going forward for ATM.\nAs far as EMS's perspective, I think the more relevant margin is at the operating level. Because of the different product mix, it will have quite a bit of fluctuations on the gross level. So the more relevant or more meaningful benchmark is really on the operating level. For that, we are targeting a 4% operating margin for EMS business. That's slightly up from what we achieved in previous year, which was at 3.8%.\nTien Wu -- Group Chief Operating Officer\n", "Okay, for the other line of business, flip chip, the fan-out and all of the others, we're also seeing a more friendly environment, but not as friendly as wirebond, they're friendly. Okay, I will not comment anymore.\nCharlie Chan -- Morgan Stanley -- Analyst\nThat's OK. Okay, thanks, gentlemen. It's very helpful, thank you.\nOperator\nNext one to ask question, Sebastian Hou, CLSA.\nSebastian Hou -- CLSA -- Analyst\nThanks for taking my questions. So just follow on the pricing and the margin, that part. Just if I look at your Q4 2020 margin that has improved, I think there is a combination of the utilization rate improved, synergies, and then pricing. But looking now into your 1Q guidance, revenue and margin will be similar to last quarter. So, can we say that the pricing is not a factor anymore in this quarter to drive the margin for improvement?\nJoseph Tung -- Chief Financial Officer\nI think it's -- to have a similar margin for first quarter compared to last quarter, it's quite a bit of a challenge itself already, because we are facing further NTD appreciation, which will have a over 1% impact on the margin. We are going through Chinese New Year, and some of the factories are going through annual maintenance. So then we will have less working days. And also, throughout the -- there's a lot of homework that needs to be passed out. Overall, compensation expenses is going to be higher for the quarter. So all the things put together, I think we are doing a pretty good job in maintaining our margin at similar margin from fourth quarter.\nTien Wu -- Group Chief Operating Officer\nI mean, just for clarification, the so-called seasonality is still here. In other words, some of the key customer run their high-volume device for consumer or" ]
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What is the weighted average tenor of debt for American Tower Corporation
us optimally to drive value from accelerating 5G deployments and next-generation technology evolutions, as Tom laid out earlier. We are also allocating capital toward higher growth earlier-stage markets that are typically at least five years behind the U.S. and Europe in their network deployments. Taken together, we believe that our global footprint positions us to capture multiple waves of investments across the globe over a sustained period of time. Finally, you can see that more than a quarter or around $9.5 billion of our deployed capital in the last five years has been distributed to shareholders in the form of dividends and share repurchases. We continue to view these components as critical to total shareholder returns. Moving to the right side of the chart. Supporting this phase of significant investment and growth has been our investment-grade balance sheet. We believe that our access to low-cost, diversified sources of financing has been a key differentiator and are proactively working to extend this critical competitive advantage into the future. In fact, incorporating our latest financing efforts, we now have a weighted average cost of debt of around 2.4%, a weighted average tenor of debt of approximately seven years, and over 85% of our balance sheet locked into fixed rate instruments. Finally, on Slide 13, and in summary, in Q3, we continue to capitalize on a strong global demand backdrop, delivering our highest quarter of consolidated AFFO per share on record. This was driven by solid organic growth, record-setting services volumes, disciplined cost controls, strategic balance sheet management, and accretive portfolio expansion. As we look ahead, we believe our existing global real estate portfolio is well positioned to drive long-term recurring growth as carriers augment and extend their networks. And with the strength of our investment-grade balance sheet and diversified pool of funding sources, we expect to continue to deploy capital toward accretive investments that can enhance our growth path and enable us to create additional value. Given our positioning at the intersection of real estate and technology in an ever more interconnected world, we are excited to continue to deliver connectivity to billions of people worldwide in a sustainable way while driving compelling total returns for our shareholders. With that, I'll turn the call back over to the operator for Q&A. Questions & Answers: Operator Thank you. [Operator instructions]. And we have a question from Michael Rollins with Citi. Please go ahead. Michael Rollins -- Citi -- Analyst Thank you. Good morning. Two questions, if I could. The first question is on the domestic environment. Just curious if you can give us an update on U.S. leasing, how it compared to your prior expectations entering into this year and what that means for the average organic tenant billings growth guidance that you provided. I think the average for '21 and '22 was about 2% on a reported basis and about 5% on a normalized basis. And then just, Tom, to follow up on your comments on the edge and data centers, is it inevitable that American Tower needs to either partner with a larger data center portfolio or directly own a larger data center portfolio? Thanks. Tom Bartlett -- President and Chief Executive Officer Yes. Thanks, Michael. Maybe, Rod, why don't you take the first part of the question and then I'll fill in on the second piece? Rod Smith -- Executive Vice President, Chief Financial Officer, and Treasurer OK, great. Good morning, Michael. Thanks for the question. So in terms of the U.S. leasing environment, we're seeing a very strong environment. Certainly, all the major carriers have been active. You've seen that show up most notably in our services environment. We've seen a tick-up in the contribution from colocation and amendment activity into our organic tenant billings growth. So that's been accelerating through each of the last three quarters, just as we expected from the outset in the year. So in terms of our expectations, everything really is right in line wit
[ "us optimally to drive value from accelerating 5G deployments and next-generation technology evolutions, as Tom laid out earlier.\nWe are also allocating capital toward higher growth earlier-stage markets that are typically at least five years behind the U.S. and Europe in their network deployments. Taken together, we believe that our global footprint positions us to capture multiple waves of investments across the globe over a sustained period of time. Finally, you can see that more than a quarter or around $9.5 billion of our deployed capital in the last five years has been distributed to shareholders in the form of dividends and share repurchases.\nWe continue to view these components as critical to total shareholder returns. Moving to the right side of the chart. Supporting this phase of significant investment and growth has been our investment-grade balance sheet. We believe that our access to low-cost, diversified sources of financing has been a key differentiator and are proactively working to extend this critical competitive advantage into the future.\nIn fact, incorporating our latest financing efforts, we now have a weighted average cost of debt of around 2.4%, a weighted average tenor of debt of approximately seven years, and over 85% of our balance sheet locked into fixed rate instruments. Finally, on Slide 13, and in summary, in Q3, we continue to capitalize on a strong global demand backdrop, delivering our highest quarter of consolidated AFFO per share on record. This was driven by solid organic growth, record-setting services volumes, disciplined cost controls, strategic balance sheet management, and accretive portfolio expansion. As we look ahead, we believe our existing global real estate portfolio is well positioned to drive long-term recurring growth as carriers augment and extend their networks.\nAnd with the strength of our investment-grade balance sheet and diversified pool of funding sources, we expect to continue to deploy capital toward accretive investments that can enhance our growth path and enable us to create additional value. Given our positioning at the intersection of real estate and technology in an ever more interconnected world, we are excited to continue to deliver connectivity to billions of people worldwide in a sustainable way while driving compelling total returns for our shareholders. With that, I'll turn the call back over to the operator for Q&A.\nQuestions & Answers:\nOperator\nThank you. [Operator instructions]. And we have a question from Michael Rollins with Citi. Please go ahead.\nMichael Rollins -- Citi -- Analyst\nThank you. Good morning. Two questions, if I could. The first question is on the domestic environment.\n", "Just curious if you can give us an update on U.S. leasing, how it compared to your prior expectations entering into this year and what that means for the average organic tenant billings growth guidance that you provided. I think the average for '21 and '22 was about 2% on a reported basis and about 5% on a normalized basis. And then just, Tom, to follow up on your comments on the edge and data centers, is it inevitable that American Tower needs to either partner with a larger data center portfolio or directly own a larger data center portfolio? Thanks.\nTom Bartlett -- President and Chief Executive Officer\nYes. Thanks, Michael. Maybe, Rod, why don't you take the first part of the question and then I'll fill in on the second piece?\nRod Smith -- Executive Vice President, Chief Financial Officer, and Treasurer\nOK, great. Good morning, Michael. Thanks for the question. So in terms of the U.S.\nleasing environment, we're seeing a very strong environment. Certainly, all the major carriers have been active. You've seen that show up most notably in our services environment. We've seen a tick-up in the contribution from colocation and amendment activity into our organic tenant billings growth.\nSo that's been accelerating through each of the last three quarters, just as we expected from the outset in the year. So in terms of our expectations, everything really is right in line wit" ]
2
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What was the operating earnings generated by the Motive Power business in the 2021-Q3 quarter
ready. There seems to be pent-up demand which should accelerate near-term growth. Our largest segment, Energy Systems, has struggled in recent quarters from slow broadband orders. The MSOs had focused on increasing node capacity for their work-from-home demand. Those MSOs have now resumed strong orders for our products, which increased their networks power capacity. Even more encouraging, MSO participation in recent wireless spectrum auctions and their enunciation of their intention to carry their 5G and 4G traffic on their own networks validates the broadband growth assumptions of our Alpha acquisition strategy. Telecom 5G growth is also accelerating in the Americas, confirming their commitment to invest in their networks to increase capacity and reliability. Our 5G small cell powering project collaboration with Corning is progressing even better than we had hoped. In this quarter, we believe the network investment in 5G has, for the first time, surpassed the existing 4G network spend. It is also encouraging to see data center markets improving. In addition to our traditional businesses, renewable energy markets continue to expand with incredible opportunities for storage applications. The new administration has clearly focused on this emerging market. We plan to respond by updating our product offering using the same modular approach from our other lines of business. We will share more specifics with you on how we will participate in renewable energy storage and EV charging in coming calls. When you consider forklifts, we are currently the leader in charging electric vehicles globally, and this technology is easily transferred. Lastly, we are beginning to see the positive impact of the global alignment of the Energy Systems organization as we leverage regional expertise and key account development. Please turn to slide four. Our motive power business showed considerable improvement in the period compared to the second quarter, delivering higher sequential revenue and operating earnings. Our order rates have surpassed the pre-COVID levels of a year ago despite sporadic pandemic-related restrictions, particularly in EMEA. The Hagen, Germany restructuring is ahead of schedule and forecasted to beat its budget. Although those restructuring benefits have not yet impacted our earnings, they will grow in magnitude throughout calendar year 2021, reaching nearly a $20 million annual run rate by the end of fiscal year 2022. Another exciting development is the launch of our NexSys iON lithium motive power batteries. Several OEMs continue to accelerate their adoption of this chemistry, and our sales team is focusing efforts for NexSys iON products on the portions of the market with the most demanding duty cycles. Please turn to slide five. The third segment of our business, Specialty, maintained its positive momentum with another strong quarter, which was slowed only by the ongoing impact of COVID on our capacity ramp, thereby delaying our ability to meet surging demand. Our transportation backlog continued to grow as we added a significant number of customers to the ODYSSEY channels. We currently are working with nearly every major player in the aftermarket distribution channel, along with many key truck OEMs and fleet operators. TPPL gained further traction in the quarter. The high-speed line is up and running, and we are adding a second shift to our Springfield plant and bringing on additional oxide and pasting capacity. We're also encouraged by several new awards in our aerospace and defense business. Before wrapping up, I'd like to take a minute to talk about some exciting advancements we've made on the technology front. We mentioned our lithium launch for motive power. Our customers have begun to order our new NexSys iON products, and initial customer feedback is very positive. We have also achieved our first OEM approval and continue to work with other material handling manufacturers. The demand for fully integrated products has significantly increased for our Energy Systems group. To ensure necessary product development k
[ " ready. There seems to be pent-up demand which should accelerate near-term growth. Our largest segment, Energy Systems, has struggled in recent quarters from slow broadband orders. The MSOs had focused on increasing node capacity for their work-from-home demand. Those MSOs have now resumed strong orders for our products, which increased their networks power capacity. Even more encouraging, MSO participation in recent wireless spectrum auctions and their enunciation of their intention to carry their 5G and 4G traffic on their own networks validates the broadband growth assumptions of our Alpha acquisition strategy. Telecom 5G growth is also accelerating in the Americas, confirming their commitment to invest in their networks to increase capacity and reliability. Our 5G small cell powering project collaboration with Corning is progressing even better than we had hoped.\nIn this quarter, we believe the network investment in 5G has, for the first time, surpassed the existing 4G network spend. It is also encouraging to see data center markets improving. In addition to our traditional businesses, renewable energy markets continue to expand with incredible opportunities for storage applications. The new administration has clearly focused on this emerging market. We plan to respond by updating our product offering using the same modular approach from our other lines of business. We will share more specifics with you on how we will participate in renewable energy storage and EV charging in coming calls. When you consider forklifts, we are currently the leader in charging electric vehicles globally, and this technology is easily transferred. Lastly, we are beginning to see the positive impact of the global alignment of the Energy Systems organization as we leverage regional expertise and key account development. Please turn to slide four. Our motive power business showed considerable improvement in the period compared to the second quarter, delivering higher sequential revenue and operating earnings.\n", "Our order rates have surpassed the pre-COVID levels of a year ago despite sporadic pandemic-related restrictions, particularly in EMEA. The Hagen, Germany restructuring is ahead of schedule and forecasted to beat its budget. Although those restructuring benefits have not yet impacted our earnings, they will grow in magnitude throughout calendar year 2021, reaching nearly a $20 million annual run rate by the end of fiscal year 2022. Another exciting development is the launch of our NexSys iON lithium motive power batteries. Several OEMs continue to accelerate their adoption of this chemistry, and our sales team is focusing efforts for NexSys iON products on the portions of the market with the most demanding duty cycles. Please turn to slide five. The third segment of our business, Specialty, maintained its positive momentum with another strong quarter, which was slowed only by the ongoing impact of COVID on our capacity ramp, thereby delaying our ability to meet surging demand. Our transportation backlog continued to grow as we added a significant number of customers to the ODYSSEY channels. We currently are working with nearly every major player in the aftermarket distribution channel, along with many key truck OEMs and fleet operators. TPPL gained further traction in the quarter.\nThe high-speed line is up and running, and we are adding a second shift to our Springfield plant and bringing on additional oxide and pasting capacity. We're also encouraged by several new awards in our aerospace and defense business. Before wrapping up, I'd like to take a minute to talk about some exciting advancements we've made on the technology front. We mentioned our lithium launch for motive power. Our customers have begun to order our new NexSys iON products, and initial customer feedback is very positive. We have also achieved our first OEM approval and continue to work with other material handling manufacturers. The demand for fully integrated products has significantly increased for our Energy Systems group. To ensure necessary product development k" ]
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What was the revenue growth rate for the laser solutions business in the 2020-Q4 quarter
panies like II-VI that are vertically integrated and have a compelling technology and product road map resulting from innovation at all levels of the transceiver design. Innovation in optical and electronics components technology, along with advanced packaging and assembly automation that enable new levels of performance and integration will become essential as the industry migrates to higher data rates in shrinking form factors. For example, we have been investing in the high-performance indium phosphide and gallium arsenide devices, including 100G data convexes, which enable 400-gigabit Internet transceivers for different reaches. Led by our CTO, Chris Koeppen, we have stepped up our investments in wafer-level integration platforms, including silicon photonics and have significantly increased our investment in integrated circuit technology, which we believe is critical to our road map and competitiveness. In telecom, we are seeing the strong customer demand for our 25G tunable transceivers for the 5G wireless front haul. And for our laser solutions, which grew 38% quarter-over-quarter, driven primarily by strong growth implant laser and our Wavelength Selective Switch product lines. For OEMs and module integrators, we are also ramping production of our components for 400G coherent optics, including our highly integrated tunable transmitter receiver assembly. Looking beyond the communications market, our aerospace and defense business grew over 20% in FY '20 for the full year. Aerospace and defense is increasingly turning into a significant growth market for us. In addition to our long-standing contribution to the F-35 aircraft and other strategic platforms that support vital intelligence, surveillance, reconnaissance and targeting applications, we are further positioning II-VI to address exciting new opportunities in hypersonics and directed energy as well as satellites and contested space.mOur 3D Sensing business, once again, grew sequentially and in a seasonally low quarter. This month, we began our fourth year of volume shipments in this important supply chain that started with our first shipments from our Warren plants. We have also accelerated the pace of development of our next-generation devices to increase our by shortening our time-to-market even further. The emergence of world-facing LiDAR sensors so smartphones and tablets underlines the strategic importance of 3D Sensing. We believe that world-facing LiDAR sensors will enable several applications, driving demand for 3D Sensing functionality in multiple end markets. We also believe it will increase the dollar content per device, it will be one of the growth drivers for 3D Sensing this year. We continue to be part of key next-generation 3D Sensing design engagements and are in a position to supply VCSEL products from our entirely U.S.-based vertical integrated facilities. We expect to continue to grow our VCSEL business and to gain market share in the upcoming product cycle by leveraging our state-of-the-art manufacturing operations in Sherman, which were qualified last quarter and where production continues to ramp. Finally, as it relates to our announcement yesterday, I reflect on our strategy and demonstrated ability to identify and execute on valuable long-term investments. We saw the INNOViON opportunity and the importance of ionic implantations years ago. We made our original investment in INNOViON in fiscal year 2018. Yesterday, we announced our plans to acquire all the outstanding interest of the owners of the parent of INNOViON. Along with our team and global footprint, INNOViON will make a great addition to our differentiated technology platforms. We similarly see significant long-term value and differentiation in Ascatron's silicon carbide epitaxy and device technology, and we're excited for them to become an integral part of II-VI too. With that, let me turn it over to Mary Jane. Mary Jane? Mary Jane Raymond -- Chief Financial Officer Thanks, Giovanni, and good morning. We closed our year with a strong performance that demonstrates our experience
[ "panies like II-VI that are vertically integrated and have a compelling technology and product road map resulting from innovation at all levels of the transceiver design.\nInnovation in optical and electronics components technology, along with advanced packaging and assembly automation that enable new levels of performance and integration will become essential as the industry migrates to higher data rates in shrinking form factors. For example, we have been investing in the high-performance indium phosphide and gallium arsenide devices, including 100G data convexes, which enable 400-gigabit Internet transceivers for different reaches. Led by our CTO, Chris Koeppen, we have stepped up our investments in wafer-level integration platforms, including silicon photonics and have significantly increased our investment in integrated circuit technology, which we believe is critical to our road map and competitiveness. In telecom, we are seeing the strong customer demand for our 25G tunable transceivers for the 5G wireless front haul.\nAnd for our laser solutions, which grew 38% quarter-over-quarter, driven primarily by strong growth implant laser and our Wavelength Selective Switch product lines. For OEMs and module integrators, we are also ramping production of our components for 400G coherent optics, including our highly integrated tunable transmitter receiver assembly. Looking beyond the communications market, our aerospace and defense business grew over 20% in FY '20 for the full year. Aerospace and defense is increasingly turning into a significant growth market for us.\nIn addition to our long-standing contribution to the F-35 aircraft and other strategic platforms that support vital intelligence, surveillance, reconnaissance and targeting applications, we are further positioning II-VI to address exciting new opportunities in hypersonics and directed energy as well as satellites and contested space.mOur 3D Sensing business, once again, grew sequentially and in a seasonally low quarter. This month, we began our fourth year of volume shipments in this important supply chain that started with our first shipments from our Warren plants. We have also accelerated the pace of development of our next-generation devices to increase our by shortening our time-to-market even further. The emergence of world-facing LiDAR sensors so smartphones and tablets underlines the strategic importance of 3D Sensing.\n", "We believe that world-facing LiDAR sensors will enable several applications, driving demand for 3D Sensing functionality in multiple end markets. We also believe it will increase the dollar content per device, it will be one of the growth drivers for 3D Sensing this year. We continue to be part of key next-generation 3D Sensing design engagements and are in a position to supply VCSEL products from our entirely U.S.-based vertical integrated facilities. We expect to continue to grow our VCSEL business and to gain market share in the upcoming product cycle by leveraging our state-of-the-art manufacturing operations in Sherman, which were qualified last quarter and where production continues to ramp.\nFinally, as it relates to our announcement yesterday, I reflect on our strategy and demonstrated ability to identify and execute on valuable long-term investments. We saw the INNOViON opportunity and the importance of ionic implantations years ago. We made our original investment in INNOViON in fiscal year 2018. Yesterday, we announced our plans to acquire all the outstanding interest of the owners of the parent of INNOViON.\nAlong with our team and global footprint, INNOViON will make a great addition to our differentiated technology platforms. We similarly see significant long-term value and differentiation in Ascatron's silicon carbide epitaxy and device technology, and we're excited for them to become an integral part of II-VI too. With that, let me turn it over to Mary Jane. Mary Jane?\nMary Jane Raymond -- Chief Financial Officer\nThanks, Giovanni, and good morning. We closed our year with a strong performance that demonstrates our experience " ]
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What was the percentage of net sales decline in Mobile Networks in the quarter
-centric than the other businesses. Of course, that means that if and hopefully when we get the volumes up, really up in the new focus segments, there should be a lot of additional margin potential yet. Right now, we are still doing a lot of portfolio cleaning. There are a lot of old products that are getting to the end of their economic life. There are also some nonperforming units, nonperforming products that we are cleaning up, and then we are increasing our focus and investment in the focus areas that I was talking about. And I believe that, that has the possibility to deliver good growth going forward. On top of all this, and I did talk about campus wireless also quite a lot, and then there is the strategic structural development that would start taking speed gradually, which is the development toward various as-a-service models where you actually want to offer certain functionalities, for example, in network security, network quality management and anomaly detection as-a-service. These are some of the initial services that we have just recently launched. And then one thing that I also talked about already last time, I think, is this evolution of open interfaces where you want to hide the enormous network complexity from developers and offer a simple set of APIs through which networking functionality. For example, industrial vertical applications can be offered to users and that way, engaging the developer community in a much more simple and straightforward way than what has traditionally been the case in this type of networking applications and communications networks in general. David Mulholland Thank you, Frank. We'll now take the next question from Alex Duval of Goldman Sachs. Alex Duval -- Goldman Sachs -- Analyst I had a quick one on the U.S. market in wireless and Nokia's position there. I wondered, firstly, if you could talk a bit about what you see in terms of market demand, both this year and next year for that particular market on the wireless side? And secondly, related to that, there have obviously been some historic share losses. I wonder to what extent you feel given what you're saying today about an improved wireless offering that you could potentially regain some share and how much progress we could expect from that. Pekka Lundmark -- President and Chief Executive Officer Of course, it goes without saying that the 16% decline in net sales of Mobile Networks in the quarter is not a good achievement. But the point here is that this is something that we had been trying to say throughout the year, that the seasonality would be different. And this again, these go back to decisions that customers made earlier in the year 2020. Now the good news is that after those decisions in typically around mid-2020, we have not lost any more market share in North America. We have had some smaller wins with some smaller operators. We, of course, then also secured a 5-year 5G deal with both T-Mobile and AT&T. So in the big picture, I would put it this way that we have now established a new baseline for our North American business, and that's not a bad baseline. On top of the Mobile Network position, we have strong position in Network Infrastructure and Cloud and Network Services, which were quite a lot actually able to compensate for what Mobile Networks lost in Q4 in North America. Now listening to the capex plans of the key customers in America that is, of course, a reason for optimism. We see continued strong market demand there. And now very importantly, when we have a completely different product competitiveness than we had a year or two -- even two years ago, we have every reason to be hopeful and optimistic. And I don't think that when we are talking about targets in general, not only in North America, but in general, to now start to go after increasing market share. I do not see that as an unrealistic target.Thank you, Alex.  David Mulholland Thank you, Alex. We'll now take our next question from Peter Nielsen at ABG. Peter, please go ahead.  Peter Nielsen -- ABG Sundal Collier -- Analyst Thank you very much. Ca
[ "-centric than the other businesses. Of course, that means that if and hopefully when we get the volumes up, really up in the new focus segments, there should be a lot of additional margin potential yet. Right now, we are still doing a lot of portfolio cleaning. There are a lot of old products that are getting to the end of their economic life.\nThere are also some nonperforming units, nonperforming products that we are cleaning up, and then we are increasing our focus and investment in the focus areas that I was talking about. And I believe that, that has the possibility to deliver good growth going forward. On top of all this, and I did talk about campus wireless also quite a lot, and then there is the strategic structural development that would start taking speed gradually, which is the development toward various as-a-service models where you actually want to offer certain functionalities, for example, in network security, network quality management and anomaly detection as-a-service. These are some of the initial services that we have just recently launched.\nAnd then one thing that I also talked about already last time, I think, is this evolution of open interfaces where you want to hide the enormous network complexity from developers and offer a simple set of APIs through which networking functionality. For example, industrial vertical applications can be offered to users and that way, engaging the developer community in a much more simple and straightforward way than what has traditionally been the case in this type of networking applications and communications networks in general.\nDavid Mulholland\nThank you, Frank. We'll now take the next question from Alex Duval of Goldman Sachs.\nAlex Duval -- Goldman Sachs -- Analyst\nI had a quick one on the U.S. market in wireless and Nokia's position there. I wondered, firstly, if you could talk a bit about what you see in terms of market demand, both this year and next year for that particular market on the wireless side? And secondly, related to that, there have obviously been some historic share losses. I wonder to what extent you feel given what you're saying today about an improved wireless offering that you could potentially regain some share and how much progress we could expect from that.\nPekka Lundmark -- President and Chief Executive Officer\n", "Of course, it goes without saying that the 16% decline in net sales of Mobile Networks in the quarter is not a good achievement. But the point here is that this is something that we had been trying to say throughout the year, that the seasonality would be different. And this again, these go back to decisions that customers made earlier in the year 2020. Now the good news is that after those decisions in typically around mid-2020, we have not lost any more market share in North America.\nWe have had some smaller wins with some smaller operators. We, of course, then also secured a 5-year 5G deal with both T-Mobile and AT&T. So in the big picture, I would put it this way that we have now established a new baseline for our North American business, and that's not a bad baseline. On top of the Mobile Network position, we have strong position in Network Infrastructure and Cloud and Network Services, which were quite a lot actually able to compensate for what Mobile Networks lost in Q4 in North America.\nNow listening to the capex plans of the key customers in America that is, of course, a reason for optimism. We see continued strong market demand there. And now very importantly, when we have a completely different product competitiveness than we had a year or two -- even two years ago, we have every reason to be hopeful and optimistic. And I don't think that when we are talking about targets in general, not only in North America, but in general, to now start to go after increasing market share.\nI do not see that as an unrealistic target.Thank you, Alex. \nDavid Mulholland\nThank you, Alex. We'll now take our next question from Peter Nielsen at ABG. Peter, please go ahead. \nPeter Nielsen -- ABG Sundal Collier -- Analyst\nThank you very much. Ca" ]
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What is the expected revenue from the Tier 1 in India project in the second half of 2022 and beyond
is India right now? And how big can you get next year, I'm hearing some major upgrades coming over the next couple of years? Charlie Vogt -- President and Chief Executive Officer Well, as I think, you all are aware, we did announce, I think, two quarters ago that we were awarded at least Phase 1 of a pretty significant Tier 1 in India. We see that opportunity expanding for us. And there's obviously different parts of the network that we participate in from the optical transport side to the OLT to the ONT to the in-home WiFi. And Phase 1 of that was with the ONTs, the second phase of that is OLTs, which comes with a much higher profile and margin profile. So we certainly are being really thoughtful about the opportunity in India. I mean, it clearly is a country that has opened up for companies like DZS to be able to participate in their aggressive cap and replacement of the China, the former China vendors in that particular region. I think it's important also for investors and shareholders to appreciate we are being thoughtful about it. We're not rushing into India to go chase low-margin deals. But there are different book ends that come with different margin profiles. Obviously, the ONTs are much lower margin profile. And to be able to complement that with the OLTs and the software attributed to the OLTs is what is in Phase II. So Phase 1 for us is the ONTs Phase 2 is the OLTs and middle mile transport, and that's something that we expect that we will book in the second half of this year and begin shipping in early 2023. Dave Kang -- B. Riley Financial -- Analyst Got it. And my next question is your APAC was fairly strong, but your mobile transport continues to be weak. I thought a significant portion of that was mobile. So can you kind of go over that? And what will get the mobile transport get going in the second half and beyond? Charlie Vogt -- President and Chief Executive Officer Well, in my comments, I did share with you that we did win a large mobile operator in Europe in Q2. We will begin shipping on that project, which is a high-margin project in Q3 and Q4. We did see, SoftBank drove a lot of our revenue over the last, let's call it, five, six, seven years. And in the first half of this year, they're going through a reevaluation of their next-generation phone-based mobile transport platform that we're working on with them. And so, the pause that I think you're seeing in some of the mobile transport revenue has to do with where SoftBank is in sort of their Phase 4 of their 5G mobile transport architecture with DZS, something that we anticipate. We will contract on in the second half of this year and begin to ship the next phase of that, which is a multiyear phase starting in '23. Dave Kang -- B. Riley Financial -- Analyst Got it. And my last question is regarding U.S. various government funds, such as ARDA, have they been released yet? Charlie Vogt -- President and Chief Executive Officer Yes, sure. I mean, we've got a lot of customers that are participating. I mean, I think what we've been articulating and I think it's fair to assess with our three peers in North America. I think for the most part, outside of what we would refer to as sort of new entrants into the traditional regional ILECs. Most of those funds are flowing to service providers and through to the equipment supplier partners that they have historically been using. Where we've been seeing a lot of excitement, frankly, is a lot of the new fiber overbuilders and some of the utility co-ops who are entering into the market, that gives DZS, frankly, an opportunity to participate where we weren't historically an incumbent. Dave Kang -- B. Riley Financial -- Analyst Got it. Actually, one more question because I get this question a lot, is that how solid is your backlog? Maybe can you go over like your contract policies, how much can be cancellable after so many months? Charlie Vogt -- President and Chief Executive Officer Well, ironically, we were just talking about this before the call. And I think it speaks volumes of the technology and the relationship
[ "is India right now? And how big can you get next year, I'm hearing some major upgrades coming over the next couple of years?\nCharlie Vogt -- President and Chief Executive Officer\nWell, as I think, you all are aware, we did announce, I think, two quarters ago that we were awarded at least Phase 1 of a pretty significant Tier 1 in India. We see that opportunity expanding for us. And there's obviously different parts of the network that we participate in from the optical transport side to the OLT to the ONT to the in-home WiFi. And Phase 1 of that was with the ONTs, the second phase of that is OLTs, which comes with a much higher profile and margin profile.\nSo we certainly are being really thoughtful about the opportunity in India. I mean, it clearly is a country that has opened up for companies like DZS to be able to participate in their aggressive cap and replacement of the China, the former China vendors in that particular region. I think it's important also for investors and shareholders to appreciate we are being thoughtful about it. We're not rushing into India to go chase low-margin deals.\nBut there are different book ends that come with different margin profiles. Obviously, the ONTs are much lower margin profile. And to be able to complement that with the OLTs and the software attributed to the OLTs is what is in Phase II. So Phase 1 for us is the ONTs Phase 2 is the OLTs and middle mile transport, and that's something that we expect that we will book in the second half of this year and begin shipping in early 2023.\nDave Kang -- B. Riley Financial -- Analyst\nGot it. And my next question is your APAC was fairly strong, but your mobile transport continues to be weak. I thought a significant portion of that was mobile. So can you kind of go over that? And what will get the mobile transport get going in the second half and beyond?\nCharlie Vogt -- President and Chief Executive Officer\n", "Well, in my comments, I did share with you that we did win a large mobile operator in Europe in Q2. We will begin shipping on that project, which is a high-margin project in Q3 and Q4. We did see, SoftBank drove a lot of our revenue over the last, let's call it, five, six, seven years. And in the first half of this year, they're going through a reevaluation of their next-generation phone-based mobile transport platform that we're working on with them.\nAnd so, the pause that I think you're seeing in some of the mobile transport revenue has to do with where SoftBank is in sort of their Phase 4 of their 5G mobile transport architecture with DZS, something that we anticipate. We will contract on in the second half of this year and begin to ship the next phase of that, which is a multiyear phase starting in '23.\nDave Kang -- B. Riley Financial -- Analyst\nGot it. And my last question is regarding U.S. various government funds, such as ARDA, have they been released yet?\nCharlie Vogt -- President and Chief Executive Officer\nYes, sure. I mean, we've got a lot of customers that are participating. I mean, I think what we've been articulating and I think it's fair to assess with our three peers in North America. I think for the most part, outside of what we would refer to as sort of new entrants into the traditional regional ILECs.\nMost of those funds are flowing to service providers and through to the equipment supplier partners that they have historically been using. Where we've been seeing a lot of excitement, frankly, is a lot of the new fiber overbuilders and some of the utility co-ops who are entering into the market, that gives DZS, frankly, an opportunity to participate where we weren't historically an incumbent.\nDave Kang -- B. Riley Financial -- Analyst\nGot it. Actually, one more question because I get this question a lot, is that how solid is your backlog? Maybe can you go over like your contract policies, how much can be cancellable after so many months?\nCharlie Vogt -- President and Chief Executive Officer\nWell, ironically, we were just talking about this before the call. And I think it speaks volumes of the technology and the relationship" ]
2
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1
who were killed in Iraq this week?
Darryl Mathis waits in his Pensacola, Florida, home for the body of his 24-year-old son to return home from Iraq. Mathis, a military veteran himself, was seething with anger Thursday as he spoke about the death of Army Staff Sgt. Darris J. Dawson. An unnamed U.S. soldier is accused of killing Army Staff Sgt. Darris J. Dawson in Iraq on Sunday. Dawson, and Sgt. Wesley Durbin, 26, are said to have been shot and killed by another U.S. soldier on Sunday at a base south of Baghdad. Darryl and his wife, Maxine (Dawson's stepmother), say the military has told them nothing about the incident: no details on his death, no information at all. His voice shakes as he says he believes that the military has let him down. "I'm very disappointed -- very," he said. "If I would get a straight answer, if they would actually tell me what's going on, I would have something to work on; but right now, I have nothing to work on. Everything I'm getting, I'm getting from the media." His wife sobs as she says her stepson's death was foreshadowed by a phone call he made to her from Iraq. "He said that he was more shaky sometimes of the soldiers than of the enemy, because of the young guys over there." She said she asked him, "What in the world do you mean? You're afraid of your own soldiers?" " 'These kids are trying to fight a war they know nothing about. ... They're jumpy. ... They're more scary than the enemy,' " she said he told her. "And I said, 'Oh, God,' " said Maxine Mathis. On any given day, CNN receives dozens of detailed news releases from the U.S. military, including those announcing U.S. military casualties. In the cases of Dawson and Durbin, there was no mention of their names, and the releases were terse. "A multi-national division center soldier died this morning of non-combat related causes," the first release read. "The cause of death is under investigation." A second release came later in the day. "A second multi-national division center soldier died this morning of non-combat related causes. The solider died of wounds September 14 at a coalition forces combat Army support hospital," it read. "The incident is under investigation." Inquiries Thursday from CNN were met with a news release that a press officer said had been drafted Wednesday. However, the release had not been e-mailed to reporters Wednesday, as is customary. After naming the two soldiers and giving their rank and unit, it reads, "A U.S. soldier is in custody in connection with the shooting deaths. He is being held in custody pending review by a military magistrate. The incident continues under investigation." The release gives no other details. The U.S. military is classifying the death of Sgt. Dawson as "non-hostile," something Dawson's father finds puzzling. "I don't know. I really don't know," he said. "I just can't get it together with that. I had never heard that before. 'Non-hostile' in a war zone?" Lt. Col. Paul Swiergosz is a public affairs officer for the area in Iraq where the incident took place. He says the "non-hostile" death classification was given "because the deaths were not the result of hostile enemy action." But details on what happened remain scarce. After asking, CNN received an e-mail press release from Gen. Tony Cucolo, commanding general of the Third Infantry Division that a press officer said had been drafted on Wednesday. The release, however, had not been e-mailed to reporters, as is customary. "We do know one soldier, a fellow noncommissioned officer, allegedly opened fire and mortally wounded his squad leader
[ "Darryl Mathis waits in his Pensacola, Florida, home for the body of his 24-year-old son to return home from Iraq. Mathis, a military veteran himself, was seething with anger Thursday as he spoke about the death of Army Staff Sgt. Darris J. Dawson. An unnamed U.S. soldier is accused of killing Army Staff Sgt. Darris J. Dawson in Iraq on Sunday. Dawson, and Sgt. Wesley Durbin, 26, are said to have been shot and killed by another U.S. soldier on Sunday at a base south of Baghdad. Darryl and his wife, Maxine (Dawson's stepmother), say the military has told them nothing about the incident: no details on his death, no information at all. His voice shakes as he says he believes that the military has let him down. \"I'm very disappointed -- very,\" he said. \"If I would get a straight answer, if they would actually tell me what's going on, I would have something to work on; but right now, I have nothing to work on. Everything I'm getting, I'm getting from the media.\" His wife sobs as she says her stepson's death was foreshadowed by a phone call he made to her from Iraq. \"He said that he was more shaky sometimes of the soldiers than of the enemy, because of the young guys over there.\" She said she asked him, \"What in the world do you mean? You're afraid of your own soldiers?\" \" 'These kids are trying to fight a war they know nothing about. ... They're jumpy. ... They're more scary than the enemy,' \" she said he told her. \"And I said, 'Oh, God,' \" said Maxine Mathis. On any given day, CNN receives dozens of detailed news releases from the U.S. military, including those announcing U.S. military casualties. In the cases of Dawson and Durbin, there was no mention of their names, and the releases were terse. \"A multi-national division center soldier died this morning of non-combat related causes,\" the first release read. \"The cause of death is under investigation.\" A second release came later in the day. \"A second multi-national division center soldier died this morning of non-combat related causes. The solider died of wounds September 14 at a coalition forces combat Army support hospital,\" it read. \"The incident is under investigation.\" ", "Inquiries Thursday from CNN were met with a news release that a press officer said had been drafted Wednesday. However, the release had not been e-mailed to reporters Wednesday, as is customary. After naming the two soldiers and giving their rank and unit, it reads, \"A U.S. soldier is in custody in connection with the shooting deaths. He is being held in custody pending review by a military magistrate. The incident continues under investigation.\" The release gives no other details. The U.S. military is classifying the death of Sgt. Dawson as \"non-hostile,\" something Dawson's father finds puzzling. \"I don't know. I really don't know,\" he said. \"I just can't get it together with that. I had never heard that before. 'Non-hostile' in a war zone?\" Lt. Col. Paul Swiergosz is a public affairs officer for the area in Iraq where the incident took place. He says the \"non-hostile\" death classification was given \"because the deaths were not the result of hostile enemy action.\" But details on what happened remain scarce. After asking, CNN received an e-mail press release from Gen. Tony Cucolo, commanding general of the Third Infantry Division that a press officer said had been drafted on Wednesday. The release, however, had not been e-mailed to reporters, as is customary. \"We do know one soldier, a fellow noncommissioned officer, allegedly opened fire and mortally wounded his squad leader" ]
2
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What is the estimated earnings from Dow's ethylene derivatives at the Thai joint ventures, polyethylene for high-performance packaging applications at its Alberta operations and surfactants for leading brand owners laundry and home care end markets in the next several years?
g-term value for all our stakeholders at our upcoming 2021 Investor Day on October 6, which will be hosted both virtually and in person in New York City. Stay tuned for more details. We look forward to engaging with you. On Slide 8, as we shared last quarter, we continue to see demand across our ethylene, polyethylene, polyurethanes, acrylics, and silicones value chains outpacing supply through 2021 and staying balanced in the near term. These market dynamics will be further supported through 2022 and beyond by the GDP-fueled market growth trends we just discussed. Some industry views call for softening conditions largely based on their view of announced capacity additions. However, they do not account for industry delays and cancellations, and when coupled with elevated demand growth from continued reopening of the global economy, will likely lead to tighter-than-forecasted market conditions, all of which will result in continued earnings, margin, and cash flow growth for Dow in the near term. And while we capture these improved earnings in our core businesses, our current slate of lower capital, faster payback, and higher return capacity expansions will generate an additional $1 billion of accretive earnings over the next several years, with many projects delivering earnings already this year, such as our ethylene derivatives at the Thai joint ventures, polyethylene for high-performance packaging applications at our Alberta operations and surfactants for leading brand owners laundry and home care end markets. And notably, in the second quarter, we progressed our polyethylene glycol incremental expansion, completing customer qualification ahead of schedule and beginning shipments of our industry-leading CARBOWAX SENTRY polyethylene glycol active pharmaceutical ingredients. Combined with favorable supply and demand fundamentals, these projects further enable Dow to continue to deliver significant value for our owners over this foreseeable future. We'll close on Slide 9. Our steadfast execution of the operational and financial playbook that we outlined at spin, combined with our agile response to market conditions over the past year, have enabled us to deliver strong performance and enhanced value to our shareholders. We are uniquely positioned to continue building on that strong foundation today. Our value proposition starts with our differentiated portfolio and an asset base that is characterized by, first, our feedstock flexibility and position, which supports our low-cost position and enables us to drive higher asset utilization and maximize cash margins as we quickly balance our feedstock and product mix to supply end demand dynamics. And second, our leading scale, global footprint, and differentiated portfolio provide us with access to high-growth end markets in all major regions. We have achieved strong performance in this early part of the economic recovery and remain advantaged through our participation in higher-margin functional polymers, silicones, and formulated systems. We continue to develop innovative solutions to address our customers' needs and capture the opportunities arising from critical market trends. Our high-value adhesives and innovative packaging solutions support the rapidly growing e-commerce sector. Through our mobility science platform, we are targeting low-carbon enabling, mobility, electric, and autonomous vehicle opportunities. More broadly, across our portfolio, we are enhancing the sustainability of our solutions and the value chains they serve. For example, deploying lower-carbon energy solutions in gas trading, carbon capture, and concentrated solar power at our operations. And through value chain collaboration, we are increasing post-consumer recycled content in our products and enabling the design of fully recyclable packaging. Today, more than 80% of Dow products for packaging applications are reusable or recyclable, and our research and technical teams are working actively on the remainder to achieve that same goal. Beyond the strength of our portfolio and our innovation investmen
[ "g-term value for all our stakeholders at our upcoming 2021 Investor Day on October 6, which will be hosted both virtually and in person in New York City.\nStay tuned for more details. We look forward to engaging with you. On Slide 8, as we shared last quarter, we continue to see demand across our ethylene, polyethylene, polyurethanes, acrylics, and silicones value chains outpacing supply through 2021 and staying balanced in the near term. These market dynamics will be further supported through 2022 and beyond by the GDP-fueled market growth trends we just discussed.\nSome industry views call for softening conditions largely based on their view of announced capacity additions. However, they do not account for industry delays and cancellations, and when coupled with elevated demand growth from continued reopening of the global economy, will likely lead to tighter-than-forecasted market conditions, all of which will result in continued earnings, margin, and cash flow growth for Dow in the near term. And while we capture these improved earnings in our core businesses, our current slate of lower capital, faster payback, and higher return capacity expansions will generate an additional $1 billion of accretive earnings over the next several years, with many projects delivering earnings already this year, such as our ethylene derivatives at the Thai joint ventures, polyethylene for high-performance packaging applications at our Alberta operations and surfactants for leading brand owners laundry and home care end markets. And notably, in the second quarter, we progressed our polyethylene glycol incremental expansion, completing customer qualification ahead of schedule and beginning shipments of our industry-leading CARBOWAX SENTRY polyethylene glycol active pharmaceutical ingredients.\nCombined with favorable supply and demand fundamentals, these projects further enable Dow to continue to deliver significant value for our owners over this foreseeable future. We'll close on Slide 9. Our steadfast execution of the operational and financial playbook that we outlined at spin, combined with our agile response to market conditions over the past year, have enabled us to deliver strong performance and enhanced value to our shareholders. We are uniquely positioned to continue building on that strong foundation today.\n", "Our value proposition starts with our differentiated portfolio and an asset base that is characterized by, first, our feedstock flexibility and position, which supports our low-cost position and enables us to drive higher asset utilization and maximize cash margins as we quickly balance our feedstock and product mix to supply end demand dynamics. And second, our leading scale, global footprint, and differentiated portfolio provide us with access to high-growth end markets in all major regions. We have achieved strong performance in this early part of the economic recovery and remain advantaged through our participation in higher-margin functional polymers, silicones, and formulated systems. We continue to develop innovative solutions to address our customers' needs and capture the opportunities arising from critical market trends.\nOur high-value adhesives and innovative packaging solutions support the rapidly growing e-commerce sector. Through our mobility science platform, we are targeting low-carbon enabling, mobility, electric, and autonomous vehicle opportunities. More broadly, across our portfolio, we are enhancing the sustainability of our solutions and the value chains they serve. For example, deploying lower-carbon energy solutions in gas trading, carbon capture, and concentrated solar power at our operations.\nAnd through value chain collaboration, we are increasing post-consumer recycled content in our products and enabling the design of fully recyclable packaging. Today, more than 80% of Dow products for packaging applications are reusable or recyclable, and our research and technical teams are working actively on the remainder to achieve that same goal. Beyond the strength of our portfolio and our innovation investmen" ]
2
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1
Whose strike kills 13 suspected terrorists west of Baghdad?
None of the 1,000-plus Iraqi detainees freed in recent weeks have broken a pledge not to return to the insurgency, according to the Marine general who oversees the U.S. detention centers in Iraq. A U.S. military panel reviews a detainee's case at Camp Cropper near Baghdad. Speaking in Arabic, Maj. Gen. Doug Stone on Wednesday reassured Iraqis about how the 25,000 detainees -- mostly Sunnis -- are treated after being taken into custody on suspicion of involvement in the insurgency. Stone described the detention system as "open and transparent," saying it makes the detainees better citizens and helps break the cycle of violence and poverty in the country. Stone said detainees get free medical care equal to what he gets as a general, food and water made to Islamic standards, educational opportunities, jobs skills and contact with families. The U.S. detention centers -- at Camp Bucca near the southern port city of Basra and in Camp Cropper near Baghdad -- are political sore points for Sunnis, who make up 83 percent of the detainees held. The main Sunni political coalition -- the Iraqi Accord Front -- cited the centers as one reason for quitting the government during the summer. Last month, the U.S.-led coalition launched Operation Lion's Paw in which between 50 and 70 detainees would be released daily during the Islamic holy month of Ramadan after taking a pledge not to rejoin the insurgency against the Shiite-led government. "This pledge is an Iraqi pledge, a pledge before an Iraqi judge, frequently with a family member present," Stone said. "I am pleased to tell you that in the more 1,000 that have gone through this program and taken the pledge, not one has returned to threaten Iraqi or coalition forces." Stone said the releases would continue at the same pace beyond Ramadan. Stone's description seems a far cry from the Abu Ghraib prison operated by the U.S. military in the first years after the invasion. That prison was closed down and razed in the wake of an international scandal over prisoner abuse. "There are no secrets that go on in detention," Stone said. "Our facilities are open to inspection by any agency that we in the federal government believe is credible. These agencies are welcomed because they are windows for the world." See what life's like inside Camp Cropper's walls » By the time of their release, "detainees grow in terms of working in an inter-sectarian environment," he said. Each detainee has a chance to take classes up to a sixth-grade level, and high school classes are being planned, Stone said. About one-third -- or 8,000 -- are in school, with 7,000 having passed the fifth-grade level, he said. The 860 detainees who are 17 or younger are all in school, Stone said. The average stay for a detainee is 300 days, but some have been detained for two years or longer, he said. A review board interviews detainees to decide if they are a threat to security, he said. If they are deemed not to be, they are offered freedom in exchange for taking the pledge. Only 280 detainees are foreigners, mostly from Syria, Egypt, Iran, Sudan and Saudi Arabia, he said. Other developments
[ "None of the 1,000-plus Iraqi detainees freed in recent weeks have broken a pledge not to return to the insurgency, according to the Marine general who oversees the U.S. detention centers in Iraq. A U.S. military panel reviews a detainee's case at Camp Cropper near Baghdad. Speaking in Arabic, Maj. Gen. Doug Stone on Wednesday reassured Iraqis about how the 25,000 detainees -- mostly Sunnis -- are treated after being taken into custody on suspicion of involvement in the insurgency. Stone described the detention system as \"open and transparent,\" saying it makes the detainees better citizens and helps break the cycle of violence and poverty in the country. Stone said detainees get free medical care equal to what he gets as a general, food and water made to Islamic standards, educational opportunities, jobs skills and contact with families. The U.S. detention centers -- at Camp Bucca near the southern port city of Basra and in Camp Cropper near Baghdad -- are political sore points for Sunnis, who make up 83 percent of the detainees held. The main Sunni political coalition -- the Iraqi Accord Front -- cited the centers as one reason for quitting the government during the summer. Last month, the U.S.-led coalition launched Operation Lion's Paw in which between 50 and 70 detainees would be released daily during the Islamic holy month of Ramadan after taking a pledge not to rejoin the insurgency against the Shiite-led government. \"This pledge is an Iraqi pledge, a pledge before an Iraqi judge, frequently with a family member present,\" Stone said. \"I am pleased to tell you that in the more 1,000 that have gone through this program and taken the pledge, not one has returned to threaten Iraqi or coalition forces.\" Stone said the releases would continue at the same pace beyond Ramadan. Stone's description seems a far cry from the Abu Ghraib prison operated by the U.S. military in the first years after the invasion. That prison was closed down and razed in the wake of an international scandal over prisoner abuse. \"There are no secrets that go on in detention,\" Stone said. \"Our facilities are open to inspection by any agency that we in the federal government believe is credible. These agencies are welcomed because they are windows for the world.\" See what life's like inside Camp Cropper's walls » By the time of their release, \"detainees grow in terms of working in an inter-sectarian environment,\" he said. ", "Each detainee has a chance to take classes up to a sixth-grade level, and high school classes are being planned, Stone said. About one-third -- or 8,000 -- are in school, with 7,000 having passed the fifth-grade level, he said. The 860 detainees who are 17 or younger are all in school, Stone said. The average stay for a detainee is 300 days, but some have been detained for two years or longer, he said. A review board interviews detainees to decide if they are a threat to security, he said. If they are deemed not to be, they are offered freedom in exchange for taking the pledge. Only 280 detainees are foreigners, mostly from Syria, Egypt, Iran, Sudan and Saudi Arabia, he said. Other developments" ]
2
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What was the percentage of total users who actively posted content on Bigo Live in the third quarter of 2020
cial medium for consumer entertainment and social networking. As such, video is occupying an increasingly significant portion of users' time. During the third quarter of 2020, our platforms continue to gain user attraction, usage and engagement. Despite Indian government's measures to block certain Chinese-owned apps in its local market and other geopolitical risks, we achieved rapid growth in other regions and our global MAUs remained relatively stable, sliding only slightly by 4% year-over-year to 390.1 million. Such accomplishment is a result of our unwavering commitment toward globalization, proactive penetration into multiple overseas markets and reduced reliance on any single market. By overcoming geopolitical challenges, we have not only validated our business models' resilience, but also laid a solid foundation for the continued implementation of our global dual-engine growth strategy, driven by live streaming and short-form video. [Foreign Speech] Bigo Live maintained its robust growth trajectory during the third quarter 2020, and its MAUs outside of India grew to 26.5 million, representing an increase of 58% year-over-year and 16% quarter-over-quarter. [Foreign Speech] Bigo Live also remained focus on its business development efforts in several key markets during the quarter, including North America, Europe, the Middle East and regions of the Eastern Pacific, further diversifying its geographic coverage and thus reducing its reliance on any single market. Consequently, Bigo's live streaming revenues increased by 131% year-over-year to RMB3.28 billion, which is US$483 million. More specifically, on a year-over-year basis, Bigo's live streaming revenues from developed markets grew by 272%. European markets grew by 270% and Eastern Pacific regions grew by 231% year-over-year. [Foreign Speech] Our long-term commitment to localizing our overseas operations and team building has been instrumental to the success of Bigo Live. As the pandemic situation continued to evolve rapidly around the world, our internationally distributed team and extensive experience in multicultural and multilingual cross-regional operations enable us to quickly adapt to the changes in market dynamics and user needs. These efforts also allowed us to further strengthen Bigo Live's geographic expansion and launch highly localized campaigns during the pandemic. In Turkey, for example, Bigo Live introduced a large number of local KOLs, key opinion leaders on which platform during the stay at home period and reaching its content invigorating the interactions between Turkish users and their favorite KOLs doing live streaming sessions and significantly hosting social engagement on its platform. As a result, Bigo Live's user base in Turkey expanded significantly within a very short period of time. [Foreign Speech] Secondly, we implemented a series of product upgrades and marketing tactics to boost our user engagement continuously. During the third quarter, for example, we released a number of product upgrades and optimization designed to satisfy users' needs for online social networking, significantly boosting the number of users hosting live streaming sessions or posting content. Additionally, we continue to see high levels of user engagement across the platform with a percentage of total users who actively posted content consistently exceeding 10% in the period, and the number of user interactions as measured by likes and comments achieving high-single-digit growth on a sequential basis. [Foreign Speech] Our short-form video platform, Likee, also accelerated its global user base expansion in the third quarter. Despite Indian government's measures to block certain Chinese-owned apps in its local market and the resulting short-term impact on our operations, Likee maintained its solid user growth and its MAUs outside of India grew to 97 million, representing an increase of 147% year-over-year and 15.5% quarter-over-quarter. More specifically, Likee's MAUs in the Middle East, North America and Europe all achieved significant growth in the third quarter,
[ "cial medium for consumer entertainment and social networking. As such, video is occupying an increasingly significant portion of users' time.\nDuring the third quarter of 2020, our platforms continue to gain user attraction, usage and engagement. Despite Indian government's measures to block certain Chinese-owned apps in its local market and other geopolitical risks, we achieved rapid growth in other regions and our global MAUs remained relatively stable, sliding only slightly by 4% year-over-year to 390.1 million. Such accomplishment is a result of our unwavering commitment toward globalization, proactive penetration into multiple overseas markets and reduced reliance on any single market. By overcoming geopolitical challenges, we have not only validated our business models' resilience, but also laid a solid foundation for the continued implementation of our global dual-engine growth strategy, driven by live streaming and short-form video.\n[Foreign Speech]\nBigo Live maintained its robust growth trajectory during the third quarter 2020, and its MAUs outside of India grew to 26.5 million, representing an increase of 58% year-over-year and 16% quarter-over-quarter.\n[Foreign Speech]\nBigo Live also remained focus on its business development efforts in several key markets during the quarter, including North America, Europe, the Middle East and regions of the Eastern Pacific, further diversifying its geographic coverage and thus reducing its reliance on any single market. Consequently, Bigo's live streaming revenues increased by 131% year-over-year to RMB3.28 billion, which is US$483 million. More specifically, on a year-over-year basis, Bigo's live streaming revenues from developed markets grew by 272%. European markets grew by 270% and Eastern Pacific regions grew by 231% year-over-year.\n[Foreign Speech]\nOur long-term commitment to localizing our overseas operations and team building has been instrumental to the success of Bigo Live. As the pandemic situation continued to evolve rapidly around the world, our internationally distributed team and extensive experience in multicultural and multilingual cross-regional operations enable us to quickly adapt to the changes in market dynamics and user needs. These efforts also allowed us to further strengthen Bigo Live's geographic expansion and launch highly localized campaigns during the pandemic.\n", "In Turkey, for example, Bigo Live introduced a large number of local KOLs, key opinion leaders on which platform during the stay at home period and reaching its content invigorating the interactions between Turkish users and their favorite KOLs doing live streaming sessions and significantly hosting social engagement on its platform. As a result, Bigo Live's user base in Turkey expanded significantly within a very short period of time.\n[Foreign Speech]\nSecondly, we implemented a series of product upgrades and marketing tactics to boost our user engagement continuously. During the third quarter, for example, we released a number of product upgrades and optimization designed to satisfy users' needs for online social networking, significantly boosting the number of users hosting live streaming sessions or posting content. Additionally, we continue to see high levels of user engagement across the platform with a percentage of total users who actively posted content consistently exceeding 10% in the period, and the number of user interactions as measured by likes and comments achieving high-single-digit growth on a sequential basis.\n[Foreign Speech]\nOur short-form video platform, Likee, also accelerated its global user base expansion in the third quarter. Despite Indian government's measures to block certain Chinese-owned apps in its local market and the resulting short-term impact on our operations, Likee maintained its solid user growth and its MAUs outside of India grew to 97 million, representing an increase of 147% year-over-year and 15.5% quarter-over-quarter. More specifically, Likee's MAUs in the Middle East, North America and Europe all achieved significant growth in the third quarter," ]
2
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1
What is the total amount of fuel and power optimization solutions investments made by AMT to date?
ht to be a meaningful player in the space. Meanwhile on the international side. Most of our markets are at least five years behind the US, in terms of deployed network technology. As a result, the edge compute opportunity and other potential 5G enabled business models are further down the road. The strategic advantage that we expect to have in these areas similar to what we did with our core tower business is the ability to prove out these models in the United States first, and then export them internationally when the time is right. Over time, we believe that our global interconnected reach will be critical in the context of an ever more global, multinational customer base, and their need to support their customer's global needs. In the meantime, one of the main focus areas of our platform extension efforts today throughout Africa and India especially, is on developing power as a service, to drive operational efficiency and cost savings, while materially reducing the carbon footprint of the wireless industry. Throughout much of Africa, and India, the electric grid is inherently unreliable. It is part of our service offerings, we are responsible for providing onsite power for our tenants. In the past, this was almost exclusively delivered through diesel generators with significant daily run times and diesel usage at considerable expense. More recently, as solar and lithium-ion battery technologies improve are becoming more cost-effective, we have accelerated our adoption of these technologies to make power provision in our sites more efficient, and environmentally friendly. In fact, at the end of 2019, we had 12.3 megawatts of solar capacity already online with more than 4,500 sites utilizing lithium-ion batteries. To date, we've invested nearly $135 million on fuel and power optimization solutions, and expect to continue to make these investments as we improve site reliability levels for our tenants. As we disclosed in our latest sustainability report, our long term target is to reduce our scope on fossil fuel consumption in diesel related greenhouse gas emissions in Africa, and India by more than 60%, or 140 million liters of diesel annually by 2027. Already, we have made significant progress toward that objective having reduced annual diesel consumption by 65 million liters since 2017, after normalizing for site count growth. To give you a sense of what that translates to, it's essentially the equivalent of taking more than 35,000 cars off the road for a full year or preserving more than 65,000 acres of forest. In addition, we are currently exploring the development of science-based emissions targets consistent with the Paris Agreement goals. These initiatives are in their early stages. We are excited about the impact that we can make going forward. Just like in the United States where we are seeking to leverage our expanding platform to augment the value of our communication sites, we believe that we can translate our expertise and industry leadership in fuel and power internationally into tremendous added value. Reducing the total cost of ownership for our tenants further improving up times and developing more efficient, clean, renewable networks will benefit stakeholders across the value chain. We're committed to making substantial additional progress over the long term. Just like in the United States where we are working on a number of other initiatives, we're continuing to look at things like fiber to the tower, fiber to the home, and other transport models. In many of our international markets as ways to further broaden our addressable market and add value. These valued propositions would all be predicated on long-term contractual commitments with multi-tenant and multi-service elements that mirror our existing tower model. in closing, on a global basis, we are in a time of tremendous technological digital transformation. Access to ubiquitous broadband connectivity has never been more important, particularly, in the context of the ongoing pandemic. There are new use cases emerging every day with modern wireless
[ "ht to be a meaningful player in the space.\nMeanwhile on the international side. Most of our markets are at least five years behind the US, in terms of deployed network technology. As a result, the edge compute opportunity and other potential 5G enabled business models are further down the road. The strategic advantage that we expect to have in these areas similar to what we did with our core tower business is the ability to prove out these models in the United States first, and then export them internationally when the time is right.\nOver time, we believe that our global interconnected reach will be critical in the context of an ever more global, multinational customer base, and their need to support their customer's global needs. In the meantime, one of the main focus areas of our platform extension efforts today throughout Africa and India especially, is on developing power as a service, to drive operational efficiency and cost savings, while materially reducing the carbon footprint of the wireless industry. Throughout much of Africa, and India, the electric grid is inherently unreliable. It is part of our service offerings, we are responsible for providing onsite power for our tenants.\nIn the past, this was almost exclusively delivered through diesel generators with significant daily run times and diesel usage at considerable expense. More recently, as solar and lithium-ion battery technologies improve are becoming more cost-effective, we have accelerated our adoption of these technologies to make power provision in our sites more efficient, and environmentally friendly. In fact, at the end of 2019, we had 12.3 megawatts of solar capacity already online with more than 4,500 sites utilizing lithium-ion batteries. To date, we've invested nearly $135 million on fuel and power optimization solutions, and expect to continue to make these investments as we improve site reliability levels for our tenants.\nAs we disclosed in our latest sustainability report, our long term target is to reduce our scope on fossil fuel consumption in diesel related greenhouse gas emissions in Africa, and India by more than 60%, or 140 million liters of diesel annually by 2027. Already, we have made significant progress toward that objective having reduced annual diesel consumption by 65 million liters since 2017, after normalizing for site count growth. To give you a sense of what that translates to, it's essentially the equivalent of taking more than 35,000 cars off the road for a full year or preserving more than 65,000 acres of forest. In addition, we are currently exploring the development of science-based emissions targets consistent with the Paris Agreement goals.\n", "These initiatives are in their early stages. We are excited about the impact that we can make going forward. Just like in the United States where we are seeking to leverage our expanding platform to augment the value of our communication sites, we believe that we can translate our expertise and industry leadership in fuel and power internationally into tremendous added value. Reducing the total cost of ownership for our tenants further improving up times and developing more efficient, clean, renewable networks will benefit stakeholders across the value chain.\nWe're committed to making substantial additional progress over the long term. Just like in the United States where we are working on a number of other initiatives, we're continuing to look at things like fiber to the tower, fiber to the home, and other transport models. In many of our international markets as ways to further broaden our addressable market and add value. These valued propositions would all be predicated on long-term contractual commitments with multi-tenant and multi-service elements that mirror our existing tower model.\nin closing, on a global basis, we are in a time of tremendous technological digital transformation. Access to ubiquitous broadband connectivity has never been more important, particularly, in the context of the ongoing pandemic. There are new use cases emerging every day with modern wireless " ]
2
[ 1, 0 ]
1
What is the expected burn rate for Inseego in 2022, considering the impact of the COVID lockdowns in Asia on new product launches and other factors
h and improved profitability. That is why we are being as, as transparent as possible and sharing with everyone the near-term challenges that face us. But as I said before, we believe these challenges will be measured in months, not quarters or years. I want to be clear on how excited I am about the opportunity that lies ahead in 5G for the enterprise. Inseego has become the leader in 5G edge with our high performance mobile and FWA solutions. In the coming months, the pieces will be put in place for mainstream adoption as the carriers evolves their 5G data plans, and we move beyond the renewed COVID lockdowns. We believe these factors, combined with our growing pipeline, and expanding go to market will put us back on track to achieving our financial goals. Thank you for your interest in Inseego. Now let's go to Q&A. Questions & Answers: Operator Thank you. [Operator instructions] Today's first question comes from Lance Vitanza with Cowen and Company. Please go ahead. Lance Vitanza -- Cowen and Company -- Analyst Hey, guys. Thanks, and congratulations on the nice quarter. I guess I had a couple of questions. The first is, Ashish mentioned the China lockdowns could cause a bigger impact in to 2Q, I think you mentioned in particular with respect to new product launches. Could you provide any more color on maybe the magnitude of the delay? And and is that revenue likely to-- I think you addressed this in terms of the months rather than quarters commentary. But specific to what you're seeing with those lockdowns, is this revenue that you think likely gets pushed into the second half? Or is there some risk that this revenue is lost forever for whatever reason? Ashish Sharma -- Chief Executive Officer Hey, Lance. Nice talking to you. Hope you're doing well. So, yes. To answer your question. It really is a slight delay, is how I would say it. We're working through all of the partners out there in Asia as they go to these lockdowns. It's just uncertainty. That's all I would say at this point. We could -- we'll come back and provide more details as we see how things unfold. It could happen, I -- that's why I said that these delays could happen. But we are really tightly managing them right now. But it's just the overall global uncertainty as that's kicked in through to what's happening with COVID in Asia. That's why we're just saying it's a little bit of a delay. But beyond that, I mean, we're working through all the challenges we are seeing out there. Lance Vitanza -- Cowen and Company -- Analyst So, on the last quarter, I think maybe the last couple of quarters, you guys obviously had talked about a -- in outlook for 2022 of for 25% year-over-year growth. Obviously, that's that pro forma for the Ctrack South Africa sale. And I think you'd also been expecting to be free cash flow positive by year end. I know that there's a lot of uncertainties here, but just in terms of thinking about how we model, the best that we can do at this point, -- would you be comfortable putting, is it -- should we be thinking more like a 15% year-over-year growth or or more or less than that? And could you help us think about that -- the magnitude of a potential when you finish the year, where do you think you'll be? Burning -- 10 million a year, burning -- more or less than that? Something that we can put some goalpost around those two things would be great. And then I have one follow up for Bob, if you don't mind. Ashish Sharma -- Chief Executive Officer Hey, Lance. I will answer and then have Bob provided the input. So as I said earlier, to me, this is more of delays than anything else. So what I would say is, is as things come back online quickly in China and as you know, the second point that that I mentioned earlier in the remarks was the 5G data plans get put in place by the leading carriers, we're really ready to go like we've got the portfolio, we've got the products, and we're super excited about all the pipeline of opportunities we are working through with lots of hundreds of enterprises right now. So to me, this is more of a delay. And if
[ "h and improved profitability.\nThat is why we are being as, as transparent as possible and sharing with everyone the near-term challenges that face us. But as I said before, we believe these challenges will be measured in months, not quarters or years. I want to be clear on how excited I am about the opportunity that lies ahead in 5G for the enterprise. Inseego has become the leader in 5G edge with our high performance mobile and FWA solutions.\nIn the coming months, the pieces will be put in place for mainstream adoption as the carriers evolves their 5G data plans, and we move beyond the renewed COVID lockdowns. We believe these factors, combined with our growing pipeline, and expanding go to market will put us back on track to achieving our financial goals. Thank you for your interest in Inseego. Now let's go to Q&A.\nQuestions & Answers:\nOperator\nThank you. [Operator instructions] Today's first question comes from Lance Vitanza with Cowen and Company. Please go ahead.\nLance Vitanza -- Cowen and Company -- Analyst\nHey, guys. Thanks, and congratulations on the nice quarter. I guess I had a couple of questions. The first is, Ashish mentioned the China lockdowns could cause a bigger impact in to 2Q, I think you mentioned in particular with respect to new product launches.\nCould you provide any more color on maybe the magnitude of the delay? And and is that revenue likely to-- I think you addressed this in terms of the months rather than quarters commentary. But specific to what you're seeing with those lockdowns, is this revenue that you think likely gets pushed into the second half? Or is there some risk that this revenue is lost forever for whatever reason?\nAshish Sharma -- Chief Executive Officer\nHey, Lance. Nice talking to you. Hope you're doing well. So, yes.\nTo answer your question. It really is a slight delay, is how I would say it. We're working through all of the partners out there in Asia as they go to these lockdowns. It's just uncertainty.\nThat's all I would say at this point. We could -- we'll come back and provide more details as we see how things unfold. It could happen, I -- that's why I said that these delays could happen. But we are really tightly managing them right now.\n", "But it's just the overall global uncertainty as that's kicked in through to what's happening with COVID in Asia. That's why we're just saying it's a little bit of a delay. But beyond that, I mean, we're working through all the challenges we are seeing out there.\nLance Vitanza -- Cowen and Company -- Analyst\nSo, on the last quarter, I think maybe the last couple of quarters, you guys obviously had talked about a -- in outlook for 2022 of for 25% year-over-year growth. Obviously, that's that pro forma for the Ctrack South Africa sale. And I think you'd also been expecting to be free cash flow positive by year end. I know that there's a lot of uncertainties here, but just in terms of thinking about how we model, the best that we can do at this point, -- would you be comfortable putting, is it -- should we be thinking more like a 15% year-over-year growth or or more or less than that? And could you help us think about that -- the magnitude of a potential when you finish the year, where do you think you'll be? Burning -- 10 million a year, burning -- more or less than that? Something that we can put some goalpost around those two things would be great.\nAnd then I have one follow up for Bob, if you don't mind.\nAshish Sharma -- Chief Executive Officer\nHey, Lance. I will answer and then have Bob provided the input. So as I said earlier, to me, this is more of delays than anything else. So what I would say is, is as things come back online quickly in China and as you know, the second point that that I mentioned earlier in the remarks was the 5G data plans get put in place by the leading carriers, we're really ready to go like we've got the portfolio, we've got the products, and we're super excited about all the pipeline of opportunities we are working through with lots of hundreds of enterprises right now.\nSo to me, this is more of a delay. And if " ]
2
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1
What was the gross margin of Skyworks in the first quarter of 2022
adoption of our solutions across 5G, IoT, automotive and wireless infrastructure, and an expanding set of new customers and markets from our recently acquired I&A business. Importantly, Skyworks continues to drive strong profit margins and exceptional cash flow. We achieved gross margin of 51.2% and operating margin of 38.8%. We posted earnings per share of $3.14, above consensus and up 20% sequentially. Finally, we generated record Q1 operating cash flow of $582 million. As our first quarter results illustrate the growth trajectory we established in fiscal 2021 is extending into fiscal 2022. We continue to see deployments accelerating with 5G cellular subscriptions predicted to grow from 700 million today to more than 4.4 billion by the year 2027. As connectivity becomes more vital to the ways we work, educate, and play, devices are increasingly integrating 5G with advanced WiFi, precision GPS, Bluetooth, Zigbee, and other wireless protocols, creating the seamless and ultrafast experience demanded by our customers. The rapid adoption of new wireless technologies enables a proliferating set of use cases with design wins spanning mobile and broad markets, further bolstered by contributions from our recently completed acquisition. Specifically in mobile, we shipped Sky5 platforms across leading smartphone OEMs, including Samsung, Oppo, Vivo, and Xiaomi, among others. In Enterprise and IoT, we supported WiFi access points at Siemens, powered NETGEAR's latest WiFi 6 and 6E mesh system, partnered with British Telecom to launch 5G home routers, ramped WiFi 6 and 6E modules at Juniper Networks and Telus, and provided digital isolation solutions for GE consumer appliances. Moving to automotive. We leverage Sky5 technology to enable telematics, security, driver assist, and other advanced services at leading OEMs. We scaled volume production of timing and isolation products enabling the leading EV manufacturers. And finally, across the infrastructure and industrial space, we captured design wins at Quectel for enterprise M2M platforms, delivered industrial IoT solutions to Itron, Honeywell, and Thales, supporting smart energy and factory automation. We also expanded our position in timing applications at the top five data centers. And as markets evolve, we expect to deploy billions of wireless devices, capitalizing on a strong multiyear growth trend. Advances in cloud and edge computing, autonomous vehicles and factory automation, together with the emergence of the Metaverse, we are intensifying the burden on existing networks, catalyzing demand for our highly integrated and customized platforms. From inception, Skyworks has been a driving force empowering the wireless network revolution, connecting people, places and things. We invested early and extensively to develop and fabricate cutting-edge technology at massive scale. Today, we're a global leader providing the essential elements required to deliver the highest performance connectivity platforms in the industry, producing billions of units integrating core technology nodes, including gallium arsenide, Belton surface acoustic wave, as well as the most advanced multi-chip module test and assembly capabilities in the world. Underpinned by this powerful foundation, we are leading the transition of 5G inspiring a new era of unrivaled innovation. The strength of our balance sheet and consistent outperformance demonstrates the significant value of our vertically integrated model and the compelling advantages it delivers. Looking forward, we are committed to supporting the strategic investments in technology, product development, and world-class manufacturing scale to further extend our market leadership. With that, I will turn the call over to Kris. Kris Sennesael -- Chief Financial Officer Thanks, Liam. Skyworks' revenue for the first fiscal quarter of 2022 was 1.51 billion, up 15% sequentially, driven by continued strong demand across our entire portfolio. Gross profit in the first quarter was 773 million, resulting in a gross margin of 51.2%, up 20 basis points sequentially. Ope
[ "adoption of our solutions across 5G, IoT, automotive and wireless infrastructure, and an expanding set of new customers and markets from our recently acquired I&A business. Importantly, Skyworks continues to drive strong profit margins and exceptional cash flow.\nWe achieved gross margin of 51.2% and operating margin of 38.8%. We posted earnings per share of $3.14, above consensus and up 20% sequentially. Finally, we generated record Q1 operating cash flow of $582 million. As our first quarter results illustrate the growth trajectory we established in fiscal 2021 is extending into fiscal 2022.\nWe continue to see deployments accelerating with 5G cellular subscriptions predicted to grow from 700 million today to more than 4.4 billion by the year 2027. As connectivity becomes more vital to the ways we work, educate, and play, devices are increasingly integrating 5G with advanced WiFi, precision GPS, Bluetooth, Zigbee, and other wireless protocols, creating the seamless and ultrafast experience demanded by our customers. The rapid adoption of new wireless technologies enables a proliferating set of use cases with design wins spanning mobile and broad markets, further bolstered by contributions from our recently completed acquisition. Specifically in mobile, we shipped Sky5 platforms across leading smartphone OEMs, including Samsung, Oppo, Vivo, and Xiaomi, among others.\nIn Enterprise and IoT, we supported WiFi access points at Siemens, powered NETGEAR's latest WiFi 6 and 6E mesh system, partnered with British Telecom to launch 5G home routers, ramped WiFi 6 and 6E modules at Juniper Networks and Telus, and provided digital isolation solutions for GE consumer appliances. Moving to automotive. We leverage Sky5 technology to enable telematics, security, driver assist, and other advanced services at leading OEMs. We scaled volume production of timing and isolation products enabling the leading EV manufacturers.\n", "And finally, across the infrastructure and industrial space, we captured design wins at Quectel for enterprise M2M platforms, delivered industrial IoT solutions to Itron, Honeywell, and Thales, supporting smart energy and factory automation. We also expanded our position in timing applications at the top five data centers. And as markets evolve, we expect to deploy billions of wireless devices, capitalizing on a strong multiyear growth trend. Advances in cloud and edge computing, autonomous vehicles and factory automation, together with the emergence of the Metaverse, we are intensifying the burden on existing networks, catalyzing demand for our highly integrated and customized platforms.\nFrom inception, Skyworks has been a driving force empowering the wireless network revolution, connecting people, places and things. We invested early and extensively to develop and fabricate cutting-edge technology at massive scale. Today, we're a global leader providing the essential elements required to deliver the highest performance connectivity platforms in the industry, producing billions of units integrating core technology nodes, including gallium arsenide, Belton surface acoustic wave, as well as the most advanced multi-chip module test and assembly capabilities in the world. Underpinned by this powerful foundation, we are leading the transition of 5G inspiring a new era of unrivaled innovation.\nThe strength of our balance sheet and consistent outperformance demonstrates the significant value of our vertically integrated model and the compelling advantages it delivers. Looking forward, we are committed to supporting the strategic investments in technology, product development, and world-class manufacturing scale to further extend our market leadership. With that, I will turn the call over to Kris.\nKris Sennesael -- Chief Financial Officer\nThanks, Liam. Skyworks' revenue for the first fiscal quarter of 2022 was 1.51 billion, up 15% sequentially, driven by continued strong demand across our entire portfolio. Gross profit in the first quarter was 773 million, resulting in a gross margin of 51.2%, up 20 basis points sequentially. Ope" ]
2
[ 0, 0 ]
0
What is the expected percentage decrease in retail traffic year-over-year in the first quarter of 2021
uestion of coverage versus capacity and speed improvements. And so... Simon Flannery -- Morgan Stanley -- Analyst Sure. Laurent Therivel -- President and Chief Executive Officer I haven't seen the silver bullet for the 5G use case beyond high-speed Internet. I have all the confidence in the world that it will emerge. I mean this industry has a long history of putting capacity in place. And then sitting down with our partners and our partners inevitably find really creative ways to fill up that capacity and deliver solutions that matter to our customers. So I would expect that, that connected health, connected education space is going to be very robust couple -- because you have the coupling of the technology in 5G going in place. And then I think that one of the silver linings of the pandemic is that you have customers now that are eager and are interested in solutions that might have been a little bit longer on the uptake in normal times that the pandemic is actually going to drive more accelerated development of those solutions. So those are a couple of spaces we're paying particular attention to. Simon Flannery -- Morgan Stanley -- Analyst Great. And then on digital transformation? Laurent Therivel -- President and Chief Executive Officer Yeah, thank you. So you're -- I mean, you hit the nail on the head. We -- I talked about slower traffic. And our traffic is down 25%, 30% year-over-year depending on which quarter you look at. We expect to that -- I don't really know what the holiday season is going to look like in terms of percentage but I feel pretty confident that it's going to be down from a retail perspective year-over-year and so you've got to have a robust digital solution. What we're really focusing our digital efforts on is around customer lifecycle management. I think that the -- lots of voices in the industry have harkened to the death now with physical retail for years and years, and I still think that in the long run this solution, the phone solution, let's call it the mobile solution, it's a big deal to our customers and driving switching behavior is very challenging. And so I expect that retail stores will continue to play a meaningful role in terms of switching. But after you've switched to customer, the digital experience is going to be critical in terms of maintaining that customer, delighting that customer and expanding ARPU over time. And so you will see increased investments from us in that digital lifecycle management area to make sure that we continue to see churn low and expand ARPU over time. It's going to be the focus of our digital efforts and you'll see investments behind it. Simon Flannery -- Morgan Stanley -- Analyst Great. Thanks a lot. Laurent Therivel -- President and Chief Executive Officer Thanks, Simon. Jane McCahon -- Senior Vice President, Corporate Relations Operator, we have time for one more question. Operator Our final question comes from the line of Sergey. Please go ahead. Your line is open. Sergey Dluzhevskiy -- GAMCO Investors, Inc. -- Analyst Good morning, guys. Thank you for taking the questions. Maybe two for LT. So on the previous call, you mentioned that you will be interested in exploring opportunities for more robust partnerships around products and infrastructure. And I think one of the examples that you gave is that AT&T in Mexico had a network-sharing relationship with Telefonica in that market. So could you maybe point us to any other examples where you UScellular potentially could be focusing on the partnership front in the future? And these are a way for UScellular to better align itself as one of the national operators and what could it look? Laurent Therivel -- President and Chief Executive Officer Hey, Sergey, great question. Yeah, you're correct. And if I think about the priorities for next year, Slide 6 lays out our priorities for 2020 and you shouldn't expect a dramatic change in 2021, right. Growth is going to be a priority, profitability is a priority but the one thing I would add to that list for 2021 is an increased focus on partnerships. You know t
[ "uestion of coverage versus capacity and speed improvements. And so...\nSimon Flannery -- Morgan Stanley -- Analyst\nSure.\nLaurent Therivel -- President and Chief Executive Officer\nI haven't seen the silver bullet for the 5G use case beyond high-speed Internet. I have all the confidence in the world that it will emerge. I mean this industry has a long history of putting capacity in place. And then sitting down with our partners and our partners inevitably find really creative ways to fill up that capacity and deliver solutions that matter to our customers. So I would expect that, that connected health, connected education space is going to be very robust couple -- because you have the coupling of the technology in 5G going in place. And then I think that one of the silver linings of the pandemic is that you have customers now that are eager and are interested in solutions that might have been a little bit longer on the uptake in normal times that the pandemic is actually going to drive more accelerated development of those solutions. So those are a couple of spaces we're paying particular attention to.\nSimon Flannery -- Morgan Stanley -- Analyst\nGreat. And then on digital transformation?\nLaurent Therivel -- President and Chief Executive Officer\nYeah, thank you. So you're -- I mean, you hit the nail on the head. We -- I talked about slower traffic. And our traffic is down 25%, 30% year-over-year depending on which quarter you look at. We expect to that -- I don't really know what the holiday season is going to look like in terms of percentage but I feel pretty confident that it's going to be down from a retail perspective year-over-year and so you've got to have a robust digital solution.\nWhat we're really focusing our digital efforts on is around customer lifecycle management. I think that the -- lots of voices in the industry have harkened to the death now with physical retail for years and years, and I still think that in the long run this solution, the phone solution, let's call it the mobile solution, it's a big deal to our customers and driving switching behavior is very challenging. And so I expect that retail stores will continue to play a meaningful role in terms of switching.\n", "But after you've switched to customer, the digital experience is going to be critical in terms of maintaining that customer, delighting that customer and expanding ARPU over time. And so you will see increased investments from us in that digital lifecycle management area to make sure that we continue to see churn low and expand ARPU over time. It's going to be the focus of our digital efforts and you'll see investments behind it.\nSimon Flannery -- Morgan Stanley -- Analyst\nGreat. Thanks a lot.\nLaurent Therivel -- President and Chief Executive Officer\nThanks, Simon.\nJane McCahon -- Senior Vice President, Corporate Relations\nOperator, we have time for one more question.\nOperator\nOur final question comes from the line of Sergey. Please go ahead. Your line is open.\nSergey Dluzhevskiy -- GAMCO Investors, Inc. -- Analyst\nGood morning, guys. Thank you for taking the questions. Maybe two for LT. So on the previous call, you mentioned that you will be interested in exploring opportunities for more robust partnerships around products and infrastructure. And I think one of the examples that you gave is that AT&T in Mexico had a network-sharing relationship with Telefonica in that market. So could you maybe point us to any other examples where you UScellular potentially could be focusing on the partnership front in the future? And these are a way for UScellular to better align itself as one of the national operators and what could it look?\nLaurent Therivel -- President and Chief Executive Officer\nHey, Sergey, great question. Yeah, you're correct. And if I think about the priorities for next year, Slide 6 lays out our priorities for 2020 and you shouldn't expect a dramatic change in 2021, right. Growth is going to be a priority, profitability is a priority but the one thing I would add to that list for 2021 is an increased focus on partnerships. You know t" ]
2
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0.63093
What is the estimated revenue contribution from the amortization of the content cost associated with TV+ in the Services revenue for the 2020-Q1 quarter
u view 5G capability in a handset? And what's your view as to what the killer app will be from a consumer perspective? Tim Cook -- Chief Executive Officer We 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. Tejas Gala -- Senior Analyst, Corporate Finance and Investor Relations Thanks, Katy. Can we have the next question please? Operator We'll hear from Kyle McNealy with Jefferies. Kyle McNealy -- Jefferies -- Analyst Hi, 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? Tim Cook -- Chief Executive Officer I 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. Kyle McNealy -- Jefferies -- Analyst Okay, 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? Tim Cook -- Chief Executive Officer I'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. Tejas Gala -- Senior Analyst, Corporate Finance and Investor Relations Thanks, Kyle. Can we have the next question please? Operator Yes, Wamsi Mohan, Bank of America. Wamsi Mohan -- Bank of America -- Analyst Yes. 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? Tim Cook -- Chief Executive Officer I 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. Wamsi Mohan -- Bank of America -- Analyst Okay, 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. Luca Maestri -- Senior Vice President & Chief Financial Officer Yeah. 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,
[ "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," ]
2
[ 1, 0 ]
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What is the expected sequential improvement in pricing from Q4 to Q1
undation of our growth. Some of these ideas are delivering now and on the platform for accelerated growth in 2022 as well. These ideas relate to the pillars of our universal strategy for growth that we presented at our Investor Day earlier in the year and include connected products, energy efficient, sustainability, and creating a differentiated and superior customer experience. Our VPI investment is paying off as well as we are now shipping product from our new East Coast facility and expect significant growth in 2022. New product introductions will also spur growth, including the new composite window product lines, energy efficient platforms, sustainable and connected door and window products. We look forward to sharing even more innovation with you in the coming quarters. The continued benefits of our operating system and premier performing culture coupled with our internal investments in innovation and new product offerings give us confidence in our ability to accelerate growth in 2022 and achieve our 2025 growth targets set forth in May, including 6% to 8% annual organic growth and 15% to 17% adjusted EBITDA margin. Thank you for joining us today. John and I will now take your questions. Questions and Answers: Operator Thank you. [Operator Instructions] And your first question comes from Deepa Raghavan with Wells Fargo Securities. Please go ahead. Deepa Raghavan -- Wells Fargo Securities -- Analyst Hi, good morning, Gary, John. Thanks for taking my questions. Just focusing a little bit on your sales guidance, your Q4 sales growth implied has a wide range, you kept your full year sales outlooks even though you pulled down your EBITDA a little bit understandably so, but looking at your Q4 sales growth range of low-single digit to high-single digit, what does your current throughput and conversion indicate? Does it indicate revenue growth at the midpoint at mid-single digits for example for Q4? John Linker -- Executive Vice President and Chief Financial Officer Good morning, Deepa. In terms of the full year guide on the revenue side is left unchanged as you noted. What I would say around your question is we do expect a sequential improvement in pricing moving from the third to the fourth quarter and we do expect sequential improvement here in the fourth quarter and then back to being relatively neutral in the fourth quarter. Deepa Raghavan -- Wells Fargo Securities -- Analyst Okay, that's fair. Thanks for that. Well, let me just switch gears and ask about your lowered capex output. What kind of projects are you eliminating at this point in time? And is that pretty much because of the material and labor constraints that you're seeing or did something else change over the course of the quarter? Gary S. Michel -- Chairman, President and Chief Executive Officer Yeah, I wouldn't characterize it as we're not investing in something, it's really just a timing issue of when the projects are ready to be invested quite frankly. We're investing in a lot of growth opportunities and we continue to invest in our JEM productivity and operational pieces. What we're finding with JEM, in particular, is we're at that point where we're in that virtuous cycle now where it doesn't take as much investment to continue to get productivity and throughput improvements because we're continuing to do rapid improvement events. We're focused on our model value streams that we're starting to get the benefit without the necessity of significant capital investment there. But also as we pointed out at the end, Deepa, of the prepared remarks, we are investing quite a bit in innovation and we have been for the last several years. So we're starting to see that come into its own as we're beginning to launch projects and products around VPI and multi-family, our composite windows, energy efficient products to meet regulations around the world, but also to continue to move that forward in our ENERGY STAR and then some really nice new products in the connectivity space and as well as sustainability. So we're continuing to invest. It's really a matter of timing
[ "undation of our growth. Some of these ideas are delivering now and on the platform for accelerated growth in 2022 as well. These ideas relate to the pillars of our universal strategy for growth that we presented at our Investor Day earlier in the year and include connected products, energy efficient, sustainability, and creating a differentiated and superior customer experience.\nOur VPI investment is paying off as well as we are now shipping product from our new East Coast facility and expect significant growth in 2022. New product introductions will also spur growth, including the new composite window product lines, energy efficient platforms, sustainable and connected door and window products. We look forward to sharing even more innovation with you in the coming quarters.\nThe continued benefits of our operating system and premier performing culture coupled with our internal investments in innovation and new product offerings give us confidence in our ability to accelerate growth in 2022 and achieve our 2025 growth targets set forth in May, including 6% to 8% annual organic growth and 15% to 17% adjusted EBITDA margin. Thank you for joining us today. John and I will now take your questions.\nQuestions and Answers:\nOperator\nThank you. [Operator Instructions] And your first question comes from Deepa Raghavan with Wells Fargo Securities. Please go ahead.\nDeepa Raghavan -- Wells Fargo Securities -- Analyst\nHi, good morning, Gary, John. Thanks for taking my questions. Just focusing a little bit on your sales guidance, your Q4 sales growth implied has a wide range, you kept your full year sales outlooks even though you pulled down your EBITDA a little bit understandably so, but looking at your Q4 sales growth range of low-single digit to high-single digit, what does your current throughput and conversion indicate? Does it indicate revenue growth at the midpoint at mid-single digits for example for Q4?\nJohn Linker -- Executive Vice President and Chief Financial Officer\nGood morning, Deepa. In terms of the full year guide on the revenue side is left unchanged as you noted. What I would say around your question is we do expect a sequential improvement in pricing moving from the third to the fourth quarter and we do expect sequential improvement here in the fourth quarter and then back to being relatively neutral in the fourth quarter.\nDeepa Raghavan -- Wells Fargo Securities -- Analyst\n", "Okay, that's fair. Thanks for that. Well, let me just switch gears and ask about your lowered capex output. What kind of projects are you eliminating at this point in time? And is that pretty much because of the material and labor constraints that you're seeing or did something else change over the course of the quarter?\nGary S. Michel -- Chairman, President and Chief Executive Officer\nYeah, I wouldn't characterize it as we're not investing in something, it's really just a timing issue of when the projects are ready to be invested quite frankly. We're investing in a lot of growth opportunities and we continue to invest in our JEM productivity and operational pieces. What we're finding with JEM, in particular, is we're at that point where we're in that virtuous cycle now where it doesn't take as much investment to continue to get productivity and throughput improvements because we're continuing to do rapid improvement events. We're focused on our model value streams that we're starting to get the benefit without the necessity of significant capital investment there.\nBut also as we pointed out at the end, Deepa, of the prepared remarks, we are investing quite a bit in innovation and we have been for the last several years. So we're starting to see that come into its own as we're beginning to launch projects and products around VPI and multi-family, our composite windows, energy efficient products to meet regulations around the world, but also to continue to move that forward in our ENERGY STAR and then some really nice new products in the connectivity space and as well as sustainability. So we're continuing to invest. It's really a matter of timing " ]
2
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What is the expected impact of the $280 million goodwill impairment charge on the overall portfolio of the company
ons in memory. We also secured an advanced dielectric position with a major logic producer And then a bunch of pad opportunities that were able to be secured as well, including some consumable sets. So what we're seeing is not only a strong overall growth environment, but we're also winning new opportunities that, obviously, they ramp up or different trajectories over time. But I think the end state will be increased participation for us, as we've talked about. And so we're really pleased with CMP. One thing I'd note is that I think there's a lot of industry growth numbers that are being talked about probably in the kind of mid- to high single-digit range for the industry as everything is running pretty full. I'd say when you think about CMP, different parts of that semiconductor market are going to grow at different rates. We think CMP is probably growing at mid-single digits. So that gives you a proxy about how well we're doing in that area. I think we've outpaced CMP for a while now, and we continue to have plans to do so. So that gives you a little bit of background on slurries and pads. On the EC side, yes, it's a different business for us. Obviously, it's a lot more regional. We participate in North America, Europe and a bit in Southeast Asia. Those markets are doing OK. But I think of EC as more of a solid growth business. It's not going to be as dynamic. It is a little bit more transient at least at the time -- since we've had it, under our portfolio. I would say that we're making some investments to improve our quality, to improve the technology of our offering and the supply chain. And I think that's going to further differentiate us from the other participants in that EC market. The other thing I would note is that a lot of the recent capacity expansions are in the U.S., particularly like TSMC and Intel. And so that should offer us additional growth opportunities for EC. But the growth trajectories are different for those different parts of our business. Toshiya Hari -- Goldman Sachs Group, Inc -- Analyst Got it. That's super helpful. And then as a quick follow-up on the PM side. You guys booked a $280 million goodwill impairment charge. And I think in the prepared script, you talked about a lower-than-anticipated recovery post the pandemic and an increase in raw material costs. If you can kind of elaborate on those two points, what's changed over the past three months? And perhaps more importantly, post this writedown, Dave, how would you characterize the importance of the DRA business within the context of your overall portfolio? Scott D. Beamer -- Vice President and Chief Financial Officer Yes. So Toshiya, I'll start. Yes, you listed the two items that we mentioned in our materials. And I think as the raw material cost in the near to midterm, that's a supply demand issue in the marketplace. We won't be too specific about any particular material. But of course, you can expect us to work to manage that. So it doesn't have a significant impact in that over our rest of the year for our business. And any impact of that is included in the guidance that we increased both the top and the bottom end of that range. As we think about the lower than initially expected recovery, I think the accounting nuance aspect of this is important. And you think about the strategic objectives of our business, which we are -- the team is working on may include things like continuing to develop our R&D portfolio, addressing some market adjacencies and other wind capture in the marketplace. We expect to get this business to a better level in the future. However, those sort of strategic objectives You're really not able to count much of those or perhaps any of those in the accounting model test. So we know this is a business that's been impacted by the pandemic. That is the big driver as we look forward in our future expectations of the business, That base business is challenged. That's going to be a lower type of recovery, but we expect that we're going to deliver on strategic objectives to get this business to a different place. But
[ "ons in memory.\nWe also secured an advanced dielectric position with a major logic producer And then a bunch of pad opportunities that were able to be secured as well, including some consumable sets. So what we're seeing is not only a strong overall growth environment, but we're also winning new opportunities that, obviously, they ramp up or different trajectories over time. But I think the end state will be increased participation for us, as we've talked about. And so we're really pleased with CMP. One thing I'd note is that I think there's a lot of industry growth numbers that are being talked about probably in the kind of mid- to high single-digit range for the industry as everything is running pretty full. I'd say when you think about CMP, different parts of that semiconductor market are going to grow at different rates. We think CMP is probably growing at mid-single digits. So that gives you a proxy about how well we're doing in that area. I think we've outpaced CMP for a while now, and we continue to have plans to do so.\nSo that gives you a little bit of background on slurries and pads. On the EC side, yes, it's a different business for us. Obviously, it's a lot more regional. We participate in North America, Europe and a bit in Southeast Asia. Those markets are doing OK. But I think of EC as more of a solid growth business. It's not going to be as dynamic. It is a little bit more transient at least at the time -- since we've had it, under our portfolio. I would say that we're making some investments to improve our quality, to improve the technology of our offering and the supply chain. And I think that's going to further differentiate us from the other participants in that EC market. The other thing I would note is that a lot of the recent capacity expansions are in the U.S., particularly like TSMC and Intel. And so that should offer us additional growth opportunities for EC. But the growth trajectories are different for those different parts of our business.\nToshiya Hari -- Goldman Sachs Group, Inc -- Analyst\n", "Got it. That's super helpful. And then as a quick follow-up on the PM side. You guys booked a $280 million goodwill impairment charge. And I think in the prepared script, you talked about a lower-than-anticipated recovery post the pandemic and an increase in raw material costs. If you can kind of elaborate on those two points, what's changed over the past three months? And perhaps more importantly, post this writedown, Dave, how would you characterize the importance of the DRA business within the context of your overall portfolio?\nScott D. Beamer -- Vice President and Chief Financial Officer\nYes. So Toshiya, I'll start. Yes, you listed the two items that we mentioned in our materials. And I think as the raw material cost in the near to midterm, that's a supply demand issue in the marketplace. We won't be too specific about any particular material. But of course, you can expect us to work to manage that. So it doesn't have a significant impact in that over our rest of the year for our business. And any impact of that is included in the guidance that we increased both the top and the bottom end of that range. As we think about the lower than initially expected recovery, I think the accounting nuance aspect of this is important.\nAnd you think about the strategic objectives of our business, which we are -- the team is working on may include things like continuing to develop our R&D portfolio, addressing some market adjacencies and other wind capture in the marketplace. We expect to get this business to a better level in the future. However, those sort of strategic objectives You're really not able to count much of those or perhaps any of those in the accounting model test. So we know this is a business that's been impacted by the pandemic. That is the big driver as we look forward in our future expectations of the business, That base business is challenged. That's going to be a lower type of recovery, but we expect that we're going to deliver on strategic objectives to get this business to a different place. But " ]
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What was the monthly active user growth of Pluto in 2020
onal streaming Thanks, Tom. 95% of the world's population, 7.5 billion people live outside of the U.S. The international opportunity in streaming is massive. Let's start with Pluto. Since ViacomCBS acquired Pluto and began expanding outside the U.S., our monthly active user growth has gone through the roof. In 2020, with growth in the U.K. and Germany as well as new launches in Latin America and Spain, our international monthly active users jumped from 1 million to 13 million. This year, with Pluto's expansion in France and Italy, we expect that incredible growth to continue. The SVOD space is still early in international markets. We expect over 350 million new subscriptions to come online in the next three years, giving us a lot of room to grow. With Paramount+, we have a four-pronged strategy to meet this global opportunity. First, we start with a truly global brand, an average of 91% of people in key markets we tested know the Paramount brand and 96% have a positive association with it. Around the globe, the Paramount brand means premium content, blockbuster films and must-see TV. Second, we deliver a powerful mix of global and local content that lives up to that storied reputation. Internationally, Paramount+ will be the home of Paramount movies with select first run movies in certain markets, as well as some of the world's biggest scripted dramas from Showtime, CBS Studios and others. This new service will feature many of the exciting Paramount plus series you've heard about today including originals such as The Man Who Fell to Earth, Halo and Kamp Koral, as well as fan favorites, like NCIS. Paramount+ will also be the international home to many of the fantastic Showtime titles you just heard about including new ads like the First Lady and American Rust, as well as classics such as Dexter and Bllions. You will also see widely acclaimed dramas from third-party studios in select markets including award-winning shows like The Handmaid's Tale and Killing Eve and local formats of some of MTV's biggest global reality franchises such as Acapulco Shore and And Are You The One: Brazil. All of these will be available to international consumers as part of a single subscription. Here's a quick look. [Video playing] Offering this unparalleled collection of global content is key to our strategy and through ViacomCBS International Studios, we're also working closely with top global content creators to ensure we have a robust offering of premium scripted local dramas. These include The Envoys, a supernatural thriller produced with Academy Award winning director and screenwriter, Juan Jose Campanella. Cecilia, a female-led dramedy from renowned Argentine writer and director, Daniel Burman and Last King of the Cross and organized crime drama, based on the best selling autobiography by John Ibrahim. We'll premier all of these in 2021 with more to come in 2022. The third pillar of our strategy is to provide this premium content experience at a value price point, creating a must-have service. That's why all of this incredible content from Paramount, Showtime, and our global content creators, will come at a considerably lower price than competitors in each market. Finally, we are leveraging the massive global reach of ViacomCBS to distribute this service. We have a deep history of relationships with the MVPDs and telco partners in every major market around the world and we are thrilled to announce that our service will have broad distribution across dozens of platforms in Latin America and the Nordics in addition to our direct-to-consumer distribution. Paramount+ will also be made available internationally through our global relationships with major platform partners such as Apple, Amazon, and Google. With a universally recognized brand and unparalleled collection of local and global content offerings, a value price point and a massive network of distributors, we are well positioned for rapid growth. So on the same day we launched in the U.S., we'll launch in all Latin American markets and in Canada. Just a few weeks after that, we will
[ "onal streaming\nThanks, Tom. 95% of the world's population, 7.5 billion people live outside of the U.S. The international opportunity in streaming is massive. Let's start with Pluto. Since ViacomCBS acquired Pluto and began expanding outside the U.S., our monthly active user growth has gone through the roof. In 2020, with growth in the U.K. and Germany as well as new launches in Latin America and Spain, our international monthly active users jumped from 1 million to 13 million. This year, with Pluto's expansion in France and Italy, we expect that incredible growth to continue. The SVOD space is still early in international markets. We expect over 350 million new subscriptions to come online in the next three years, giving us a lot of room to grow.\nWith Paramount+, we have a four-pronged strategy to meet this global opportunity. First, we start with a truly global brand, an average of 91% of people in key markets we tested know the Paramount brand and 96% have a positive association with it. Around the globe, the Paramount brand means premium content, blockbuster films and must-see TV. Second, we deliver a powerful mix of global and local content that lives up to that storied reputation. Internationally, Paramount+ will be the home of Paramount movies with select first run movies in certain markets, as well as some of the world's biggest scripted dramas from Showtime, CBS Studios and others. This new service will feature many of the exciting Paramount plus series you've heard about today including originals such as The Man Who Fell to Earth, Halo and Kamp Koral, as well as fan favorites, like NCIS.\nParamount+ will also be the international home to many of the fantastic Showtime titles you just heard about including new ads like the First Lady and American Rust, as well as classics such as Dexter and Bllions. You will also see widely acclaimed dramas from third-party studios in select markets including award-winning shows like The Handmaid's Tale and Killing Eve and local formats of some of MTV's biggest global reality franchises such as Acapulco Shore and And Are You The One: Brazil. All of these will be available to international consumers as part of a single subscription. Here's a quick look.\n[Video playing]\n", "Offering this unparalleled collection of global content is key to our strategy and through ViacomCBS International Studios, we're also working closely with top global content creators to ensure we have a robust offering of premium scripted local dramas. These include The Envoys, a supernatural thriller produced with Academy Award winning director and screenwriter, Juan Jose Campanella. Cecilia, a female-led dramedy from renowned Argentine writer and director, Daniel Burman and Last King of the Cross and organized crime drama, based on the best selling autobiography by John Ibrahim.\nWe'll premier all of these in 2021 with more to come in 2022. The third pillar of our strategy is to provide this premium content experience at a value price point, creating a must-have service. That's why all of this incredible content from Paramount, Showtime, and our global content creators, will come at a considerably lower price than competitors in each market. Finally, we are leveraging the massive global reach of ViacomCBS to distribute this service.\nWe have a deep history of relationships with the MVPDs and telco partners in every major market around the world and we are thrilled to announce that our service will have broad distribution across dozens of platforms in Latin America and the Nordics in addition to our direct-to-consumer distribution. Paramount+ will also be made available internationally through our global relationships with major platform partners such as Apple, Amazon, and Google.\nWith a universally recognized brand and unparalleled collection of local and global content offerings, a value price point and a massive network of distributors, we are well positioned for rapid growth. So on the same day we launched in the U.S., we'll launch in all Latin American markets and in Canada. Just a few weeks after that, we will " ]
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0
She was addicted to drugs?
Crack-addicted Felicia Anderson was pregnant with her third child when an ultrasound changed the direction of her life. After inpatient rehab, Felicia Anderson sought help from Mothers Making a Change to help beat her addiction. "You could hear that baby's heartbeat strong and steady. Really, that's her personality today, a strong, vibrant little girl. And at that time, laying there, tears starting rolling down my face," Anderson, 44, recalled. In that moment, Anderson vowed to stay off drugs, something she'd been unable to do in more than a decade addicted to crack cocaine, even when she was pregnant with her first two children. Anderson didn't think she could do it alone, so, like almost 2 million Americans a year, she entered a treatment program. Anderson spent three weeks in residential treatment -- all she could afford -- but didn't think that was enough, so she enrolled in Mothers Making a Change, a year-long outpatient drug and alcohol program in Atlanta, Georgia. Three times as many Americans choose outpatient treatment as residential treatment, or rehab. It costs less, is more likely to be covered by insurance and does not require participants to leave work or their families for a month or more. The outpatient program Anderson chose, Mothers Making a Change, is designed especially for pregnant women and women with young children. Anderson was both. At the time, her oldest daughter, Sierra, was 5; her middle child, Anicia, was almost 2. In addition to therapy and education, Mothers Making a Change provided transportation and offered free child care while Anderson was there. When she completed the program, Mothers Making a Change helped her find a job. "I can say with everything in me, with every bit of my breath, that program helped me turn my life around," said Anderson, who now runs a program to help the developmentally disabled in DeKalb County, Georgia. Interactive: Addiction and the brain » Like most programs, residential or outpatient, Mothers Making a Change is built on the 12 steps pioneered by Alcoholics Anonymous. Among them: Admit you're powerless over your addiction, and turn your life over to a higher power. "It's important in my opinion to have a connection with your spiritual world, your higher power," Anderson said. "So I thank God, first of all, for giving me a second chance in life." Anderson began drinking and smoking marijuana in high school. She moved on to snorting cocaine and then smoking it. She said her drug use began spiraling out of control when her husband, an Army infantryman, committed suicide after returning from Operation Desert Storm. She said the crack numbed her pain. Watch Felicia Anderson describe her experience » Anderson tried to hide her addiction, but the lies became harder to maintain. She lost weight. She couldn't keep a job. And she began stealing to keep her children clothed and fed and to support her habit. She even stole their Christmas presents. "The gifts would be under the tree, and I needed some crack, and I would take whatever present was there," Anderson recalled. "The crack was my friend. The crack was my job. The crack was my children. You know, it was my life. So no matter how bad I wanted to stop, I couldn't stop," she said. Anderson said she even smoked crack as she went into labor with her second child. "That's to tell you how bad off, how out of control, how much it didn't matter," she said. "But I couldn't stop. I couldn't stop." Caught shoplifting repeatedly, Anderson said, she was facing a five-year prison sentence in Maryland for violating probation when her brother Brian Robinson intervened. He convinced the judge to let Anderson and her two daughters come to Georgia with him and to let his sister check into rehab instead of going to jail. Like many
[ "Crack-addicted Felicia Anderson was pregnant with her third child when an ultrasound changed the direction of her life. After inpatient rehab, Felicia Anderson sought help from Mothers Making a Change to help beat her addiction. \"You could hear that baby's heartbeat strong and steady. Really, that's her personality today, a strong, vibrant little girl. And at that time, laying there, tears starting rolling down my face,\" Anderson, 44, recalled. In that moment, Anderson vowed to stay off drugs, something she'd been unable to do in more than a decade addicted to crack cocaine, even when she was pregnant with her first two children. Anderson didn't think she could do it alone, so, like almost 2 million Americans a year, she entered a treatment program. Anderson spent three weeks in residential treatment -- all she could afford -- but didn't think that was enough, so she enrolled in Mothers Making a Change, a year-long outpatient drug and alcohol program in Atlanta, Georgia. Three times as many Americans choose outpatient treatment as residential treatment, or rehab. It costs less, is more likely to be covered by insurance and does not require participants to leave work or their families for a month or more. The outpatient program Anderson chose, Mothers Making a Change, is designed especially for pregnant women and women with young children. Anderson was both. At the time, her oldest daughter, Sierra, was 5; her middle child, Anicia, was almost 2. In addition to therapy and education, Mothers Making a Change provided transportation and offered free child care while Anderson was there. When she completed the program, Mothers Making a Change helped her find a job. \"I can say with everything in me, with every bit of my breath, that program helped me turn my life around,\" said Anderson, who now runs a program to help the developmentally disabled in DeKalb County, Georgia. Interactive: Addiction and the brain » Like most programs, residential or outpatient, Mothers Making a Change is built on the 12 steps pioneered by Alcoholics Anonymous. Among them: Admit you're powerless over your addiction, and turn your life over to a higher power. \"It's important in my opinion to have a connection with your spiritual world, your higher power,\" Anderson said. \"So I thank God, first of all, for giving me a second chance in life.\" Anderson began drinking and smoking marijuana in high school. She moved on to snorting cocaine and then smoking it. ", "She said her drug use began spiraling out of control when her husband, an Army infantryman, committed suicide after returning from Operation Desert Storm. She said the crack numbed her pain. Watch Felicia Anderson describe her experience » Anderson tried to hide her addiction, but the lies became harder to maintain. She lost weight. She couldn't keep a job. And she began stealing to keep her children clothed and fed and to support her habit. She even stole their Christmas presents. \"The gifts would be under the tree, and I needed some crack, and I would take whatever present was there,\" Anderson recalled. \"The crack was my friend. The crack was my job. The crack was my children. You know, it was my life. So no matter how bad I wanted to stop, I couldn't stop,\" she said. Anderson said she even smoked crack as she went into labor with her second child. \"That's to tell you how bad off, how out of control, how much it didn't matter,\" she said. \"But I couldn't stop. I couldn't stop.\" Caught shoplifting repeatedly, Anderson said, she was facing a five-year prison sentence in Maryland for violating probation when her brother Brian Robinson intervened. He convinced the judge to let Anderson and her two daughters come to Georgia with him and to let his sister check into rehab instead of going to jail. Like many" ]
2
[ 1, 1 ]
1
What is the company's current return on invested capital
Investor Day event on March 23 in which we unveiled several growth initiatives that we believe will help us continue our track record of above-market growth through a combination of organic and inorganic opportunities. Our organic opportunities are focused on expansion into new markets within our core competencies of wood and concrete products. Our inorganic opportunities will be focused on licensing, purchasing IP and traditional M&A. As a reminder, our growth initiatives focused on the following markets, which I'll list in no particular order of priority: OEM, original equipment manufacturers; repair remodel, the do-it-yourself market; mass timber, concrete and structural steel. In order to appropriately grow in the first three markets that being OEM, retail -- R&R as well as the DIY and mass timber, we aspire to be a leader in engineered load-rated construction fastener solutions, given that each of these markets have a broader product opportunity within the fastener solutions. In addition, we're striving to be a stronger leader in customer-facing technology, which has been a focus of ours for a number of years. Here I'm referring to software that helps our customers better run their business by providing them with the proper tools to design, select and specify the right Simpson solutions for the job. We expect technological advancements will drive enhanced growth in all of our key growth initiatives as well as across all of Simpson Manufacturing in general. We believe our business model will support our ability to be successful throughout each of these areas, given our engineering expertise, our deep-rooted relationship with top builders, engineers, contractors, code officials and distributors, along with our ongoing commitment to testing, research and innovation. Importantly, we currently have existing products, test results, distribution and manufacturing capabilities for all five of our growth initiatives. This is also important to note that these initiatives are currently in different stages of development. Our successful growth in these areas will ultimately be a function of expanding our sales and marketing functions to promote our products to different end-users and distribution channels, expanding our customer base, and potentially introducing new products in the future. We will keep you appraised of significant updates regarding our key growth initiatives as they arise. I'd also like to highlight our five-year Company ambitions that we unveiled at our Analyst Investor Day. First, we want to strengthen our values-based culture. Barclay Simpson founded our Company on the nine principles of doing business, which continue to guide our organization today. Our Simpson Strong-Tie employees are our most important asset. So we spend a significant amount of time communicating with them to ensure a relentless customer focus, involving them in leadership programs and instilling a safety-first culture. Second, we want to be the partner of choice. This ambition takes on many meanings. It means we want to be your solution provider, your trusted brand to provide you a solution and quickly get that product out to your job site and we want to make it easy to do business with us. We aspire to be the partner of choice in all aspects of our business. Third, we strive to be an innovative leader in product categories. If we can accomplish this, we have no doubt we will be able to accomplish ambition Number 4, which is to continue our above-market growth relative to U.S. housing starts. This we will continue to expand our operating income margin to remain within the top quartile of our proxy peers. And finally, we will continue expanding our return on invested capital to remain in the top quartile of those peers. After building our strong foundation through the 2020 plan, we look forward to an even stronger future ahead. Before I close today, I'd like to briefly touch on our capital allocation strategy. As our business continues to generate strong cash flows, we remain focused on appropriately balancing our growth and stockholder
[ " Investor Day event on March 23 in which we unveiled several growth initiatives that we believe will help us continue our track record of above-market growth through a combination of organic and inorganic opportunities. Our organic opportunities are focused on expansion into new markets within our core competencies of wood and concrete products. Our inorganic opportunities will be focused on licensing, purchasing IP and traditional M&A.\nAs a reminder, our growth initiatives focused on the following markets, which I'll list in no particular order of priority: OEM, original equipment manufacturers; repair remodel, the do-it-yourself market; mass timber, concrete and structural steel. In order to appropriately grow in the first three markets that being OEM, retail -- R&R as well as the DIY and mass timber, we aspire to be a leader in engineered load-rated construction fastener solutions, given that each of these markets have a broader product opportunity within the fastener solutions.\nIn addition, we're striving to be a stronger leader in customer-facing technology, which has been a focus of ours for a number of years. Here I'm referring to software that helps our customers better run their business by providing them with the proper tools to design, select and specify the right Simpson solutions for the job. We expect technological advancements will drive enhanced growth in all of our key growth initiatives as well as across all of Simpson Manufacturing in general.\nWe believe our business model will support our ability to be successful throughout each of these areas, given our engineering expertise, our deep-rooted relationship with top builders, engineers, contractors, code officials and distributors, along with our ongoing commitment to testing, research and innovation. Importantly, we currently have existing products, test results, distribution and manufacturing capabilities for all five of our growth initiatives. This is also important to note that these initiatives are currently in different stages of development.\nOur successful growth in these areas will ultimately be a function of expanding our sales and marketing functions to promote our products to different end-users and distribution channels, expanding our customer base, and potentially introducing new products in the future. We will keep you appraised of significant updates regarding our key growth initiatives as they arise.\n", "I'd also like to highlight our five-year Company ambitions that we unveiled at our Analyst Investor Day. First, we want to strengthen our values-based culture. Barclay Simpson founded our Company on the nine principles of doing business, which continue to guide our organization today. Our Simpson Strong-Tie employees are our most important asset. So we spend a significant amount of time communicating with them to ensure a relentless customer focus, involving them in leadership programs and instilling a safety-first culture.\nSecond, we want to be the partner of choice. This ambition takes on many meanings. It means we want to be your solution provider, your trusted brand to provide you a solution and quickly get that product out to your job site and we want to make it easy to do business with us. We aspire to be the partner of choice in all aspects of our business.\nThird, we strive to be an innovative leader in product categories. If we can accomplish this, we have no doubt we will be able to accomplish ambition Number 4, which is to continue our above-market growth relative to U.S. housing starts. This we will continue to expand our operating income margin to remain within the top quartile of our proxy peers. And finally, we will continue expanding our return on invested capital to remain in the top quartile of those peers. After building our strong foundation through the 2020 plan, we look forward to an even stronger future ahead.\nBefore I close today, I'd like to briefly touch on our capital allocation strategy. As our business continues to generate strong cash flows, we remain focused on appropriately balancing our growth and stockholder " ]
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0
What is the company's operating expenses for 2021-Q1
full spectrum coming to bear. And it really is that combination of world-class foundry, world-class IP, world-class assembly package and test that we think gives us a unique proposition in the industry. And so far, the enthusiasm is very high for that offering. George Davis -- Chief Financial Officer Yes. And, Pierre, I would add, as you talk about the two different alternatives, one of the things to remember is that if you look at our internal road map, people are used to seeing a highly differentiated and very specific to Intel set of IP capabilities. We've said over time that it's very clear that we're going to be adopting more and more of the industry ecosystem, IPs and libraries because it makes sense to do it, and it makes sense in terms of cycle time, in terms of taking advantage of capabilities that already exist out there. So we're closing -- we're not going to -- when we intercept on some of these windows, we're not going to be as far away, I think, as people might think in terms of being able to demonstrate a lot of knowledge around many of the IP blocks that our customers depend on today. Pat Gelsinger -- Chief Executive Officer Yeah. And let me just add to that. I think it's a great point, George, because every IP that I generate from the industry increases the IP available to my internal design teams. Every piece of IP I develop internally is going to be made available to the industry, right, for their use as well. This becomes a powerful reinforcing cycle, right? Also, wherever we're being benchmarked against the industry for our process technology as we move to industry-standard PDKs, right, we're seeing strong embrace from the EDA suppliers. So we see all of this as it makes our process better. It makes our products better. It increases our efficiency and takes our clock rate of innovation up with the industry. It's a powerful strategy. Operator Our next question will come from the line of Chris Danely from Citigroup. You may begin. Chris Danely -- Citi -- Analyst Thanks, guys. So it seems like we're in the middle of this never-ending fuselage of ARM products out there, both from a merchant and a captive perspective. So Pat, I just appreciate your thoughts on, I guess, where you see things shaking out on an x86 versus ARM, both in the PC and the data center space. And would you guys ever consider maybe licensing the x86 technology to some of your hyper-scale customers and having them design their own products with the foundry? Pat Gelsinger -- Chief Executive Officer The simple answer to the last part of the question is, yes, that's what we just announced, right? x86 cores will be available on our foundry services and available for people to design with them. So that will include the cloud service providers to take advantage of that. So the simple answer is yes. And we do believe that the ability for our customers to take advantage of x86 this way will be a meaningful shift in how people think about ARM versus x86 because part of it was we weren't giving them the flexibility to design, to co-mingle IP as I've described it. So they really -- if they were trying to do unique design work, they didn't have a good x86 choice. We gave them our standard products, which have lots of capabilities. But in some of -- particularly for the cloud guy, I'd say, "Boy, I don't use those particular features. I really could optimize with a few of these other things in the network and the memory hierarchy." And now we're saying, "Absolutely. Come on in." And we're opening the doors of our IP, the doors of our leading process and packaging technology to be able to say let's do this together or let them do their own designs in our foundry as well. It's a very powerful strategy that I think will be a meaningful shift in the exact question that you asked. Overall, we do think that making the x86 available this way is powerful. There are trillion lines of code that have been optimized for the x86. This is a powerful ecosystem that continues to have very great innovation and capabilities associated with it. And we're enhancing th
[ "full spectrum coming to bear.\nAnd it really is that combination of world-class foundry, world-class IP, world-class assembly package and test that we think gives us a unique proposition in the industry. And so far, the enthusiasm is very high for that offering.\nGeorge Davis -- Chief Financial Officer\nYes. And, Pierre, I would add, as you talk about the two different alternatives, one of the things to remember is that if you look at our internal road map, people are used to seeing a highly differentiated and very specific to Intel set of IP capabilities. We've said over time that it's very clear that we're going to be adopting more and more of the industry ecosystem, IPs and libraries because it makes sense to do it, and it makes sense in terms of cycle time, in terms of taking advantage of capabilities that already exist out there. So we're closing -- we're not going to -- when we intercept on some of these windows, we're not going to be as far away, I think, as people might think in terms of being able to demonstrate a lot of knowledge around many of the IP blocks that our customers depend on today.\nPat Gelsinger -- Chief Executive Officer\nYeah. And let me just add to that. I think it's a great point, George, because every IP that I generate from the industry increases the IP available to my internal design teams. Every piece of IP I develop internally is going to be made available to the industry, right, for their use as well.\nThis becomes a powerful reinforcing cycle, right? Also, wherever we're being benchmarked against the industry for our process technology as we move to industry-standard PDKs, right, we're seeing strong embrace from the EDA suppliers. So we see all of this as it makes our process better. It makes our products better. It increases our efficiency and takes our clock rate of innovation up with the industry.\nIt's a powerful strategy.\nOperator\nOur next question will come from the line of Chris Danely from Citigroup. You may begin.\nChris Danely -- Citi -- Analyst\n", "Thanks, guys. So it seems like we're in the middle of this never-ending fuselage of ARM products out there, both from a merchant and a captive perspective. So Pat, I just appreciate your thoughts on, I guess, where you see things shaking out on an x86 versus ARM, both in the PC and the data center space. And would you guys ever consider maybe licensing the x86 technology to some of your hyper-scale customers and having them design their own products with the foundry?\nPat Gelsinger -- Chief Executive Officer\nThe simple answer to the last part of the question is, yes, that's what we just announced, right? x86 cores will be available on our foundry services and available for people to design with them. So that will include the cloud service providers to take advantage of that. So the simple answer is yes. And we do believe that the ability for our customers to take advantage of x86 this way will be a meaningful shift in how people think about ARM versus x86 because part of it was we weren't giving them the flexibility to design, to co-mingle IP as I've described it.\nSo they really -- if they were trying to do unique design work, they didn't have a good x86 choice. We gave them our standard products, which have lots of capabilities. But in some of -- particularly for the cloud guy, I'd say, \"Boy, I don't use those particular features. I really could optimize with a few of these other things in the network and the memory hierarchy.\" And now we're saying, \"Absolutely.\nCome on in.\" And we're opening the doors of our IP, the doors of our leading process and packaging technology to be able to say let's do this together or let them do their own designs in our foundry as well. It's a very powerful strategy that I think will be a meaningful shift in the exact question that you asked. Overall, we do think that making the x86 available this way is powerful. There are trillion lines of code that have been optimized for the x86.\nThis is a powerful ecosystem that continues to have very great innovation and capabilities associated with it. And we're enhancing th" ]
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What is the current percentage of time that people spend on Facebook that is dedicated to Reels?
portant, both for our mission and business comparable and value to the leading mobile platforms today. Now I recognize that it's expensive to build this. It's something that's never been built before. And it's a new paradigm for computing and social connection. So over the next several years, our goal from a financial perspective is to generate sufficient operating income growth from family of apps to fund the growth of investment in Reality Labs, while still growing our overall profitability. Now unfortunately, that's not going to happen in 2022, given the revenue headwinds. But longer term, that is our goal and our expectation. Of course, our priority remains building for the long term. So while we're currently building our plans to achieve this, it is possible that prolonged macroeconomic or business uncertainty could force us to trade off against shorter-term financial goals. But we remain confident in our long-term opportunities and growth. Now with that, I want to dive deeper on what we're seeing in three of our main investment priorities that I expect to drive this growth: Reels, ads, and the Metaverse. So let's start with Reels. There are two key trends that we're seeing here. First, the increasing popularity of short-form video; and second, the advancement of AI recommendations driving more of our feeds rather than just social content. On the first point, since I started Facebook 18 years ago, we've seen multiple shifts in the media types that people use. And we started as a website primarily with text, then people got phones with cameras and the main format became images on mobile apps. In the last several years, mobile networks have gotten faster and now video is the main way that people experience content online. Short-form video is the latest iteration of this, and it's growing very quickly. Reels already makes up more than 20% of the time that people spend on Instagram. Video overall makes up 50% of the time that people spend on Facebook and Reels has grown quickly there as well. The second point is that while we're experiencing an increase in short-form video, we're also seeing a major shift in Feeds from being almost exclusively curated by your social graph or follow graph to now having more of your feed recommended by AI, even if the content wasn't posted by a friend or someone you follow. Social content from friends and people and businesses you follow will continue being a lot of the most valuable, engaging, and differentiated content for our services, but now also being able to accurately recommend content from the whole universe that you don't follow directly, unlocks a large amount of interesting and useful videos and posts that you might have otherwise missed. Overall, I think about the AI that we're building not just as a recommendation system for short-form video, but as a discovery engine that can show you all of the most interesting content that people have shared across our systems. In Facebook, that includes not just video, but also text posts, links, group posts, reshares, and more, on Instagram that includes photos as well as video. In the future, I think that people will increasingly turn to AI-based discovery engines to entertain them, teach them things and connect them with people who share their interests. And I believe that our investments in AI, all the different types of content we support, and our work to build the best platform for creators to make a living will increasingly set our services apart from the rest of the industry and drive our success. And we're also finding that having an ambitious vision around building the world's discovery engine is attracting a lot of the most talented AI folks to work on this program. Next, let's talk about Ads. Sheryl will discuss this in more detail, but I want to highlight that this is also a large AI investment for us. There are three main trends to highlight in our Ads business right now. First, we're managing headwinds from the shift to short-form video that I just mentioned. In the near term, this is a drag on revenue because real monetiz
[ "portant, both for our mission and business comparable and value to the leading mobile platforms today. Now I recognize that it's expensive to build this. It's something that's never been built before.\nAnd it's a new paradigm for computing and social connection. So over the next several years, our goal from a financial perspective is to generate sufficient operating income growth from family of apps to fund the growth of investment in Reality Labs, while still growing our overall profitability. Now unfortunately, that's not going to happen in 2022, given the revenue headwinds. But longer term, that is our goal and our expectation.\nOf course, our priority remains building for the long term. So while we're currently building our plans to achieve this, it is possible that prolonged macroeconomic or business uncertainty could force us to trade off against shorter-term financial goals. But we remain confident in our long-term opportunities and growth. Now with that, I want to dive deeper on what we're seeing in three of our main investment priorities that I expect to drive this growth: Reels, ads, and the Metaverse.\nSo let's start with Reels. There are two key trends that we're seeing here. First, the increasing popularity of short-form video; and second, the advancement of AI recommendations driving more of our feeds rather than just social content. On the first point, since I started Facebook 18 years ago, we've seen multiple shifts in the media types that people use.\nAnd we started as a website primarily with text, then people got phones with cameras and the main format became images on mobile apps. In the last several years, mobile networks have gotten faster and now video is the main way that people experience content online. Short-form video is the latest iteration of this, and it's growing very quickly. Reels already makes up more than 20% of the time that people spend on Instagram.\n", "Video overall makes up 50% of the time that people spend on Facebook and Reels has grown quickly there as well. The second point is that while we're experiencing an increase in short-form video, we're also seeing a major shift in Feeds from being almost exclusively curated by your social graph or follow graph to now having more of your feed recommended by AI, even if the content wasn't posted by a friend or someone you follow. Social content from friends and people and businesses you follow will continue being a lot of the most valuable, engaging, and differentiated content for our services, but now also being able to accurately recommend content from the whole universe that you don't follow directly, unlocks a large amount of interesting and useful videos and posts that you might have otherwise missed. Overall, I think about the AI that we're building not just as a recommendation system for short-form video, but as a discovery engine that can show you all of the most interesting content that people have shared across our systems.\nIn Facebook, that includes not just video, but also text posts, links, group posts, reshares, and more, on Instagram that includes photos as well as video. In the future, I think that people will increasingly turn to AI-based discovery engines to entertain them, teach them things and connect them with people who share their interests. And I believe that our investments in AI, all the different types of content we support, and our work to build the best platform for creators to make a living will increasingly set our services apart from the rest of the industry and drive our success. And we're also finding that having an ambitious vision around building the world's discovery engine is attracting a lot of the most talented AI folks to work on this program.\nNext, let's talk about Ads. Sheryl will discuss this in more detail, but I want to highlight that this is also a large AI investment for us. There are three main trends to highlight in our Ads business right now. First, we're managing headwinds from the shift to short-form video that I just mentioned.\nIn the near term, this is a drag on revenue because real monetiz" ]
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What is the current revenue generated by the product and what is the projected revenue for the next quarter?
on and do I think we'll do it in a reasonable time? $5 billion [Indecipherable] yes, I do. And I think it's done. The growth rate here is reflective of not only the size of the market, but the need and utility and affordability of the product. And I think it's just as I've said many times, it's a very different market where affordability and the utility, the access, all those things make this a mass market product, not a niche. And it's designed for that, it's priced for that, it's a very profitable product. And we're going through the large-scale scale up of addressing that kind of growth, which is unprecedented for products in our space. So do I think it can grow to that sort of level? I won't -- I won't jinx anything by trying to make some prognostication about $10 billion, but I would say that I think it's got enormous potential and it's got potential beyond glucose. It's got potential as a wearable in other analytes and other products over time. We have R&D programs under way, not only for the repeated enhancement improvement, expansion of Libre, but also into other categories beyond diabetes and other analyzers and so forth. So I think that there's just a lot of things that will evolve over the coming years here that today people aren't even contemplating with the product. We're going as hard as we can at the glucose opportunity, which is enormous, but there is so much more beyond that, that I think at least your aspirational consideration to be honest has validity [Phonetic] I just -- I'm not ready to put any numbers around it. Matthew Taylor -- UBS -- Analyst Thanks. And then maybe one last follow-up. That was a great answer, but just wanted to get your feedback on what you think is misunderstood about Libre today when you get feedback from investors that bubbles up to you, where do you think that the internal view of Libre really differs from the Street's perception or people's perception? Miles D. White -- Chairman of the Board and Chief Executive Officer [Indecipherable] only ask the COO. He's been living with it a long time. Robert B. Ford -- President and Chief Operating Officer Yeah, I think when we went out about this several years ago, the challenge here, Matt, wasn't to get an accurate reading of glucose from the interstitial fluid. Navigator when we had launched it back in 2008, we were able to do that. It was very accurate and we were able to get an accurate reading. The challenge that we went about with Libre is how to do that in a way that is cost-effective for the health systems and for consumers and for -- and for all of that. So that was what we really went after is, how can you get that accurate reading at a cost position at the core of Libre and you might remember at the time Navigator at the time was considered the most accurate sensor. In the core of Libre is that chemistry, is that core technology of Navigator, which provides accurate reliable readings. But we're able to do that a cost position that now makes sense for the insurance and for the payer community, and the health systems to cover it. It wasn't a question of whether the outcomes were right or whether the outcomes were enough. They were convinced that the outcomes were there for sensor based glucose monitoring. It was just -- can I now do it in a way that makes sense for me to do it on a mass scale and Miles has talked about this about mass scale, that's what we went after 10 years ago. And that's at the core and I think maybe that's misunderstood because a lot of this discussion gets focused on well accuracy at this level and accuracy at that level. And the reality is accuracy is obviously important, but our goal here is to make this massively available without having to sacrifice accuracy and the fact that we price it at a different price point, wouldn't say necessarily imply that it's somehow missing something. We just had a different strategy, and different view of what we could do. Miles D. White -- Chairman of the Board and Chief Executive Officer The only product out there that the Street has been able to compare it to is ex
[ "on and do I think we'll do it in a reasonable time? $5 billion [Indecipherable] yes, I do. And I think it's done. The growth rate here is reflective of not only the size of the market, but the need and utility and affordability of the product. And I think it's just as I've said many times, it's a very different market where affordability and the utility, the access, all those things make this a mass market product, not a niche.\nAnd it's designed for that, it's priced for that, it's a very profitable product. And we're going through the large-scale scale up of addressing that kind of growth, which is unprecedented for products in our space. So do I think it can grow to that sort of level? I won't -- I won't jinx anything by trying to make some prognostication about $10 billion, but I would say that I think it's got enormous potential and it's got potential beyond glucose. It's got potential as a wearable in other analytes and other products over time.\nWe have R&D programs under way, not only for the repeated enhancement improvement, expansion of Libre, but also into other categories beyond diabetes and other analyzers and so forth. So I think that there's just a lot of things that will evolve over the coming years here that today people aren't even contemplating with the product. We're going as hard as we can at the glucose opportunity, which is enormous, but there is so much more beyond that, that I think at least your aspirational consideration to be honest has validity [Phonetic] I just -- I'm not ready to put any numbers around it.\nMatthew Taylor -- UBS -- Analyst\nThanks. And then maybe one last follow-up. That was a great answer, but just wanted to get your feedback on what you think is misunderstood about Libre today when you get feedback from investors that bubbles up to you, where do you think that the internal view of Libre really differs from the Street's perception or people's perception?\nMiles D. White -- Chairman of the Board and Chief Executive Officer\n[Indecipherable] only ask the COO. He's been living with it a long time.\nRobert B. Ford -- President and Chief Operating Officer\n", "Yeah, I think when we went out about this several years ago, the challenge here, Matt, wasn't to get an accurate reading of glucose from the interstitial fluid. Navigator when we had launched it back in 2008, we were able to do that. It was very accurate and we were able to get an accurate reading. The challenge that we went about with Libre is how to do that in a way that is cost-effective for the health systems and for consumers and for -- and for all of that.\nSo that was what we really went after is, how can you get that accurate reading at a cost position at the core of Libre and you might remember at the time Navigator at the time was considered the most accurate sensor. In the core of Libre is that chemistry, is that core technology of Navigator, which provides accurate reliable readings. But we're able to do that a cost position that now makes sense for the insurance and for the payer community, and the health systems to cover it. It wasn't a question of whether the outcomes were right or whether the outcomes were enough. They were convinced that the outcomes were there for sensor based glucose monitoring. It was just -- can I now do it in a way that makes sense for me to do it on a mass scale and Miles has talked about this about mass scale, that's what we went after 10 years ago. And that's at the core and I think maybe that's misunderstood because a lot of this discussion gets focused on well accuracy at this level and accuracy at that level.\nAnd the reality is accuracy is obviously important, but our goal here is to make this massively available without having to sacrifice accuracy and the fact that we price it at a different price point, wouldn't say necessarily imply that it's somehow missing something. We just had a different strategy, and different view of what we could do.\nMiles D. White -- Chairman of the Board and Chief Executive Officer\nThe only product out there that the Street has been able to compare it to is ex" ]
2
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0
What is the expected deployment timeline for 5G in the US market?
have initial deployment, followed by densification and then more and more geographies have been a rollout. It's similar to what we saw with our 3G and things like that. So how aggressively things start, I think it's already happening in countries like Japan and we are seeing some pretty good traction and even though, we are in the home turf, one of our major competitors. We are doing pretty well in that market, which gives me confidence that our products are quite good. In terms of the U.S., I think U.S. will be the next thing, I mean clearly, there is China, and that's already been going on for quite a while. In terms of the next big deployment, markets will be U.S., and in U.S., we have an interesting situation of three players now vying for the 5G crown. That's why I think we will probably see things happening sooner rather than later, because there is now a competition. It's no longer a duopoly with two major players kind of moving at a kind of link-link node-node type pace, where they take the time. Right now there's three players, it's very difficult to sustain a collusion or anything like that. So I think things are going to happen much quicker in U.S., maybe starting sometime next year, later this year. I think that the next one would be Europe and I think Europe is really about a year behind U.S. into some deployments and we probably should start seeing some things happens in Europe sometime next year. Richard Shannon -- Craig-Hallum Capital Group LLC -- Analyst Okay, great. Thanks for that color. Oleg, my follow-on question is in your fiber business, you've talked, I think, for at least couple of quarters about a fairly robust cycle 400-gig, maybe if you can give us a sense of when that turns into a robust cycle in terms of fiber. And then how do you see the 400-gig generation versus the last two generations of at least as positive or even better. How do you view that? Oleg Khaykin -- President and Chief Executive Officer Well, I think, if anything, I see like -- when we went from one-gig to 10-gig, 10-gig to 100-gig, what I've seen with each one is deterioration. The amount of time between the start of deployment of one and started deployment of another technology node that time has been getting shorter and shorter. I mean, we only went to 100-gig in earnest, a couple of years ago. And now we are already seeing 400-gig and we already, our customers want to see 800-gig. So I think the fiber is really, from my perspective, I think the time of each node deployment is shortening and we may see multiple technology core exist. I mean we may see data centers moving to higher bit-rate sooner and metro areas kind of transitioning from 10-gig to 100-gig slower, but we will be seeing all these nodes co-existing in parallel rather than with one ramping up the other one ramping down. And just completely new customer segments, it's no longer the traditional telecom transport. I mean we see the back lane overall the data center boxes is becoming optical and that's really driving a lot of the fiber demand. Richard Shannon -- Craig-Hallum Capital Group LLC -- Analyst Okay, great. That's a great perspective, Oleg. Thanks for that. Operator Next up, we have Tim Savageaux from Northland Capital. Your line is open. Tim Savageaux -- Northland Securities Inc. -- Analyst Good afternoon and congrats on the results. A couple of questions here. First, over on the OSP side or 3D sensing, in particular, you had mentioned and we've heard a little bit of this before today, about an increasing level of activity around world-facing in the Android universe and you'd also mentioned that there is a potential source of upside, and I think your Android contribution to 3D sensing to date has been pretty low, if not minimal. And so my question is basically an upside to what baseline, when you say that which is to share with a robust Android rollout in second half of calendar '21, your fiscal '22 drive the same sort of double-digit growth you're seeing in 3D sensing next year even with, say your top customer sort of flattish. Oleg Khaykin -- Preside
[ " have initial deployment, followed by densification and then more and more geographies have been a rollout. It's similar to what we saw with our 3G and things like that. So how aggressively things start, I think it's already happening in countries like Japan and we are seeing some pretty good traction and even though, we are in the home turf, one of our major competitors. We are doing pretty well in that market, which gives me confidence that our products are quite good. In terms of the U.S., I think U.S. will be the next thing, I mean clearly, there is China, and that's already been going on for quite a while. In terms of the next big deployment, markets will be U.S., and in U.S., we have an interesting situation of three players now vying for the 5G crown. That's why I think we will probably see things happening sooner rather than later, because there is now a competition. It's no longer a duopoly with two major players kind of moving at a kind of link-link node-node type pace, where they take the time. Right now there's three players, it's very difficult to sustain a collusion or anything like that.\nSo I think things are going to happen much quicker in U.S., maybe starting sometime next year, later this year. I think that the next one would be Europe and I think Europe is really about a year behind U.S. into some deployments and we probably should start seeing some things happens in Europe sometime next year.\nRichard Shannon -- Craig-Hallum Capital Group LLC -- Analyst\nOkay, great. Thanks for that color. Oleg, my follow-on question is in your fiber business, you've talked, I think, for at least couple of quarters about a fairly robust cycle 400-gig, maybe if you can give us a sense of when that turns into a robust cycle in terms of fiber. And then how do you see the 400-gig generation versus the last two generations of at least as positive or even better. How do you view that?\nOleg Khaykin -- President and Chief Executive Officer\n", "Well, I think, if anything, I see like -- when we went from one-gig to 10-gig, 10-gig to 100-gig, what I've seen with each one is deterioration. The amount of time between the start of deployment of one and started deployment of another technology node that time has been getting shorter and shorter. I mean, we only went to 100-gig in earnest, a couple of years ago. And now we are already seeing 400-gig and we already, our customers want to see 800-gig. So I think the fiber is really, from my perspective, I think the time of each node deployment is shortening and we may see multiple technology core exist. I mean we may see data centers moving to higher bit-rate sooner and metro areas kind of transitioning from 10-gig to 100-gig slower, but we will be seeing all these nodes co-existing in parallel rather than with one ramping up the other one ramping down. And just completely new customer segments, it's no longer the traditional telecom transport. I mean we see the back lane overall the data center boxes is becoming optical and that's really driving a lot of the fiber demand.\nRichard Shannon -- Craig-Hallum Capital Group LLC -- Analyst\nOkay, great. That's a great perspective, Oleg. Thanks for that.\nOperator\nNext up, we have Tim Savageaux from Northland Capital. Your line is open.\nTim Savageaux -- Northland Securities Inc. -- Analyst\nGood afternoon and congrats on the results. A couple of questions here. First, over on the OSP side or 3D sensing, in particular, you had mentioned and we've heard a little bit of this before today, about an increasing level of activity around world-facing in the Android universe and you'd also mentioned that there is a potential source of upside, and I think your Android contribution to 3D sensing to date has been pretty low, if not minimal. And so my question is basically an upside to what baseline, when you say that which is to share with a robust Android rollout in second half of calendar '21, your fiscal '22 drive the same sort of double-digit growth you're seeing in 3D sensing next year even with, say your top customer sort of flattish.\nOleg Khaykin -- Preside" ]
2
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What was the growth rate for CMR (consumption management revenue) in the annual fiscal year 2021
Turning now to globalization. As was mentioned in my speech earlier, we're very pleased that we now have 240 million international AACs, and we hope to double that figure going forward. So, growing the international user base is also very important to us. Daniel Zhang -- Chairman and Chief Executive Officer [Foreign language] Unknown speaker Finally, I'd like to talk briefly about technology. We see the cloud as epoch-defining opportunity and we'll continue to invest in cloud technology but also in big data and other kinds of technology, as well as including technology to enable the next-generation consumption experience to better support logistics services. And in other areas, to ensure that technology is supporting the realization of our domestic consumption strategy, our globalization strategy, as well as our cloud, and high-tech strategy. We want to enable all of these strategic areas to benefit from further improvements in our technology capabilities. Rob Lin -- Head of Investor Relations OK. Next question, please. Operator Thank you. Yes. Our next question is from the line of Thomas Chong of Jefferies. Your line is open. Please go ahead. Thomas Chong -- Jefferies -- Analyst Hi. Good evening. Thanks to the management for taking my questions. May I ask about the trend in terms of the CMR. Given that we have seen the CMR of late as where we sold it, can you comment about the FY '22 outlook? In particular, how we should think about the tech weight trend for this year? And my second question is about the competitive landscape. Given that we have a wide port of selections and very strong technology, how would we leverage our core capabilities in different areas like lower-tier cities' penetration, as well as our strategic initiative in local service and the TAM. Thank you. Unknown speaker [Foreign language] Maggie Wu -- Chief Financial Officer Yeah. Hi, Thomas, In terms of CMR growth, you've seen that we reported a 24% year-on-year growth for the quarter. And if you look at the past few quarters, it's been growing strongly considering its, you know, large base. I believe the CMR growth going to be -- have -- continue to have high potential. If you look at this revenue, actually the TAM is merchant's budget, right? To pay for the services and -- we've provided. Currently, our take is somewhere around 4%. This is mainly where merchants are paying for the sales and marketing branding services we've provided. So, even in this small area, we still have a lot of potentials. And there are also other areas that we could provide merchant service. So, the take rate has been growing over the past years. I think this year, as we talked about, we're going to provide more support to the merchants. In our last call, we talked about the details on how we support our merchants. These include waiving certain charges, fees. And also, we lessened the platforms, the infrastructure support to merchants. So, we're not aggressively monetizing the value we creating -- created for the merchants actually. The one thing worth to mention is that CMR currently accounts for approximately 43% of our total revenue. If you look at three years ago, five years ago, it used to be like 70%, 80%, right? So, it has been growing there fast. As the percentage of revenue coming down, I think that trend will continue. That is because of our mark engine strategy. We have so many new businesses and revenue contributed from these new seats that become more and more important and significant to our total revenue. Unknown speaker [Foreign language] Maggie Wu -- Chief Financial Officer Yeah. Just one minor correction. The 24% year-on-year growth is for the annual -- fiscal 2021. For this quarter, the growth rate for CMR was 40%. Unknown speaker [Foreign language] Joe Tsai -- Executive Vice Chairman Let me answer the second question in terms of the technology, how to apply technology into the competition. Actually, we always believe that technology is so critical in the competition and we are proud of our technology development and integration with the real operation, a
[ " Turning now to globalization. As was mentioned in my speech earlier, we're very pleased that we now have 240 million international AACs, and we hope to double that figure going forward. So, growing the international user base is also very important to us.\nDaniel Zhang -- Chairman and Chief Executive Officer\n[Foreign language]\nUnknown speaker\nFinally, I'd like to talk briefly about technology. We see the cloud as epoch-defining opportunity and we'll continue to invest in cloud technology but also in big data and other kinds of technology, as well as including technology to enable the next-generation consumption experience to better support logistics services. And in other areas, to ensure that technology is supporting the realization of our domestic consumption strategy, our globalization strategy, as well as our cloud, and high-tech strategy. We want to enable all of these strategic areas to benefit from further improvements in our technology capabilities.\nRob Lin -- Head of Investor Relations\nOK. Next question, please.\nOperator\nThank you. Yes. Our next question is from the line of Thomas Chong of Jefferies. Your line is open.\nPlease go ahead.\nThomas Chong -- Jefferies -- Analyst\nHi. Good evening. Thanks to the management for taking my questions. May I ask about the trend in terms of the CMR.\nGiven that we have seen the CMR of late as where we sold it, can you comment about the FY '22 outlook? In particular, how we should think about the tech weight trend for this year? And my second question is about the competitive landscape. Given that we have a wide port of selections and very strong technology, how would we leverage our core capabilities in different areas like lower-tier cities' penetration, as well as our strategic initiative in local service and the TAM. Thank you.\nUnknown speaker\n[Foreign language]\nMaggie Wu -- Chief Financial Officer\nYeah. Hi, Thomas, In terms of CMR growth, you've seen that we reported a 24% year-on-year growth for the quarter. And if you look at the past few quarters, it's been growing strongly considering its, you know, large base. I believe the CMR growth going to be -- have -- continue to have high potential.\n", "If you look at this revenue, actually the TAM is merchant's budget, right? To pay for the services and -- we've provided. Currently, our take is somewhere around 4%. This is mainly where merchants are paying for the sales and marketing branding services we've provided. So, even in this small area, we still have a lot of potentials.\nAnd there are also other areas that we could provide merchant service. So, the take rate has been growing over the past years. I think this year, as we talked about, we're going to provide more support to the merchants. In our last call, we talked about the details on how we support our merchants.\nThese include waiving certain charges, fees. And also, we lessened the platforms, the infrastructure support to merchants. So, we're not aggressively monetizing the value we creating -- created for the merchants actually. The one thing worth to mention is that CMR currently accounts for approximately 43% of our total revenue.\nIf you look at three years ago, five years ago, it used to be like 70%, 80%, right? So, it has been growing there fast. As the percentage of revenue coming down, I think that trend will continue. That is because of our mark engine strategy. We have so many new businesses and revenue contributed from these new seats that become more and more important and significant to our total revenue.\nUnknown speaker\n[Foreign language]\nMaggie Wu -- Chief Financial Officer\nYeah. Just one minor correction. The 24% year-on-year growth is for the annual -- fiscal 2021. For this quarter, the growth rate for CMR was 40%.\nUnknown speaker\n[Foreign language]\nJoe Tsai -- Executive Vice Chairman\nLet me answer the second question in terms of the technology, how to apply technology into the competition. Actually, we always believe that technology is so critical in the competition and we are proud of our technology development and integration with the real operation, a" ]
2
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1
What is the current market size for Bluetooth units and what is the expected growth rate for Wi-Fi units relative to Bluetooth units in 2021?
answered to Matt as well. The category outside of the mobile and PC, whether it's Wi-Fi, whether it's Bluetooth, whether it's cellular IoT, we see a big momentum there. I mean tons of product coming very fast, I mean we -- all sort of product, if you go to Asia, I don't think of any -- I cannot think of any electronic products that doesn't found with connection with the Internet. So that's the excitement and that's what we are going to see a strong impact in the coming year. The other category, of course, is the 5G base stations. Here, I think in China next year -- this year is going to be stronger, this is a flat and the second customer is coming out as well. What ahead of us and we don't see it -- we don't -- we cannot see it now, is the [Indecipherable] use cases of 5G. In the prepared remark, I mentioned private networks, you have so many manufacturing factories that are going into private network with the wrong cellular network secured and reliable in the small cells and Fixed Wireless Access. These are all designs that we see the rollout of this one, but when it's -- becomes real in those market could be this year or could be next year. Suji Desilva -- Roth Capital -- Analyst Okay. And then lastly, on the connectivity -- Go ahead. Sorry, Gideon. Gideon Wertheizer -- Chief Executive Officer [Indecipherable] is, when you go to small cells, private fixed wireless access speak about volume, speak about -- of the millions of the product. Suji Desilva -- Roth Capital -- Analyst Okay. Great. And then lastly on connectivity, Bluetooth is very strong over 500 million units last year, what's the expectation for Wi-Fi units relative to Bluetooth? Is it an order of magnitude lower with a higher ASP or kind of approach something like a Bluetooth size unit market, understanding the Wi-Fi TAM would be helpful? Yaniv Arieli -- Chief Financial Officer So Wi-Fi is a growing market for -- both for us and overall, the world as well and much more used and adopted these last couple of years than four, five years ago when we bought RivieraWaves back in 2014, nobody was using IP for Wi-Fi, it was just merchant chips at that time, and the whole this has completely changed with dozens of deals that we have signed six-fold unit growth in 2020. And I would add that to give you a list and your first question, what are some of the exciting opportunities, Wi-Fi unit growth in 2021 for sure needs to climb significantly with many more products that are out there. Suji Desilva -- Roth Capital -- Analyst Okay. Thanks, guys. Yaniv Arieli -- Chief Financial Officer Thank you, Suji. Operator And our next question will come Tavy Rosner with Barclays. Please go ahead. Tavy Rosner -- Barclays -- Analyst Hi. Thanks for taking my questions and congratulations on the strong results. I just wanted to get back to the guidance for 2021. Maybe I didn't hear properly but with regards to the royalty forecast, you mentioned that you guys are taking a wait and see approach because of some of the slowdown in the semi industry. I guess, do you have a way to normalize that assuming that there is a recovery sooner than expected or how meaningful would it be to your revenue forecast? Yaniv Arieli -- Chief Financial Officer Hi, Tavy. Good morning. So let me one thing, correct you, really important, the business slowdown in the semiconductor industry, the problem is the opposite. There is huge demand in the semiconductor industry all over the place and this what's causes the inventory issue, the lean inventories than [Phonetic] the long lead-times, the salary are thus fully utilized, it's a great prompt to have if you're in the semiconductor space, it's not great to be -- if you're an OEM and you need to get those chips and you need to build those cars and get them out the door, that's what the problem is, so eventually when there will be enough manufacturing capabilities that not demand to fulfill the demand, we should see both our customers ship more, for us to recognize more revenue on these royalties. This is what we alluded to, you could see that many companies in th
[ " answered to Matt as well. The category outside of the mobile and PC, whether it's Wi-Fi, whether it's Bluetooth, whether it's cellular IoT, we see a big momentum there. I mean tons of product coming very fast, I mean we -- all sort of product, if you go to Asia, I don't think of any -- I cannot think of any electronic products that doesn't found with connection with the Internet. So that's the excitement and that's what we are going to see a strong impact in the coming year.\nThe other category, of course, is the 5G base stations. Here, I think in China next year -- this year is going to be stronger, this is a flat and the second customer is coming out as well. What ahead of us and we don't see it -- we don't -- we cannot see it now, is the [Indecipherable] use cases of 5G. In the prepared remark, I mentioned private networks, you have so many manufacturing factories that are going into private network with the wrong cellular network secured and reliable in the small cells and Fixed Wireless Access. These are all designs that we see the rollout of this one, but when it's -- becomes real in those market could be this year or could be next year.\nSuji Desilva -- Roth Capital -- Analyst\nOkay. And then lastly, on the connectivity -- Go ahead. Sorry, Gideon.\nGideon Wertheizer -- Chief Executive Officer\n[Indecipherable] is, when you go to small cells, private fixed wireless access speak about volume, speak about -- of the millions of the product.\nSuji Desilva -- Roth Capital -- Analyst\nOkay. Great. And then lastly on connectivity, Bluetooth is very strong over 500 million units last year, what's the expectation for Wi-Fi units relative to Bluetooth? Is it an order of magnitude lower with a higher ASP or kind of approach something like a Bluetooth size unit market, understanding the Wi-Fi TAM would be helpful?\nYaniv Arieli -- Chief Financial Officer\n", "So Wi-Fi is a growing market for -- both for us and overall, the world as well and much more used and adopted these last couple of years than four, five years ago when we bought RivieraWaves back in 2014, nobody was using IP for Wi-Fi, it was just merchant chips at that time, and the whole this has completely changed with dozens of deals that we have signed six-fold unit growth in 2020. And I would add that to give you a list and your first question, what are some of the exciting opportunities, Wi-Fi unit growth in 2021 for sure needs to climb significantly with many more products that are out there.\nSuji Desilva -- Roth Capital -- Analyst\nOkay. Thanks, guys.\nYaniv Arieli -- Chief Financial Officer\nThank you, Suji.\nOperator\nAnd our next question will come Tavy Rosner with Barclays. Please go ahead.\nTavy Rosner -- Barclays -- Analyst\nHi. Thanks for taking my questions and congratulations on the strong results. I just wanted to get back to the guidance for 2021. Maybe I didn't hear properly but with regards to the royalty forecast, you mentioned that you guys are taking a wait and see approach because of some of the slowdown in the semi industry. I guess, do you have a way to normalize that assuming that there is a recovery sooner than expected or how meaningful would it be to your revenue forecast?\nYaniv Arieli -- Chief Financial Officer\nHi, Tavy. Good morning. So let me one thing, correct you, really important, the business slowdown in the semiconductor industry, the problem is the opposite. There is huge demand in the semiconductor industry all over the place and this what's causes the inventory issue, the lean inventories than [Phonetic] the long lead-times, the salary are thus fully utilized, it's a great prompt to have if you're in the semiconductor space, it's not great to be -- if you're an OEM and you need to get those chips and you need to build those cars and get them out the door, that's what the problem is, so eventually when there will be enough manufacturing capabilities that not demand to fulfill the demand, we should see both our customers ship more, for us to recognize more revenue on these royalties.\nThis is what we alluded to, you could see that many companies in th" ]
2
[ 1, 0 ]
1
What was the increase in channel inventory in days
cracks in the armor yet in terms of the tightness that we're seeing. And certainly, as new fab capacity ramps toward the end of next year, I think that that should get us to the point where we can get back to serving the demand. Raji Gill -- Needham & Company -- Analyst And if I could just squeeze one more in terms of the IoT you had mentioned broad based growth across wireless but kind of specific focus on some traction on WiFi; any update there in terms of your WiFi efforts? Thank you. Matt Johnson -- President Yeah, this is Matt. So on the WiFi piece; it's been over a year since we completed the acquisition of Redpine. We're very happy with the way that's gone. We've integrated the team, we've seen good market response to the technology and now we're integrating that capability into our ongoing roadmap. It came off from a small base, but we're actually seeing the growth of those WiFi products above the average of our other wireless technologies. So we're seeing good uptick in momentum there. And the fundamental thesis or strategic backdrop for why we did this hasn't changed, if anything we've seen in the last year or two, it's accelerated. So we're happy with where it's at. And we see continuing momentum there. Raji Gill -- Needham & Company -- Analyst Appreciate it. Thank you. Operator The next question comes from Srini Pajjuri from SMBC Nikko Securities. Please go ahead. Srini Pajjuri -- SMBC Nikko Securities -- Analyst Thank you, good morning guys. And let me echo my congrats as well for Tyson and Matt. A couple of questions. First, John, can we talk about the channel inventory. I think you said, it went up four days. Could you put it into perspective and also are you comfortable where the inventory is? Or do you plan to kind of try to build additional level of inventory as we head into the second half of the year? Tyson Tuttle -- Chief Executive Officer Yeah, Srini, I mean the main thing to say about this is our operations team has done a great job executing more supply get into shipments out and ensuring that we have adequate channel inventory. The inventory is falling, but we are pleased that we're able to elevate our unit shipments on a sequential basis in the second quarter. I mean anticipate doing that again in the third quarter. So that is a relatively normal level of inventory. Ideally, yes, we would like to increase it from, but overall, that is a relatively normal level. Srini Pajjuri -- SMBC Nikko Securities -- Analyst Got it. And then, just a follow-up on gross margins, John. So your longer-term model is for mid-50%. I'm just trying to understand how we get to mid-50% from the current levels obviously you said there was some benefit in the quarter. But as we go through the next few quarters or next couple of years, should we assume that this is going to be a gradual decline or I mean do you even that -- I mean should we even expect a decline or do you think the mix itself will take care of itself? Or are there any other factors that we should be aware of as we model gross margins? John Hollister -- Chief Financial Officer Srini it's of course it's a hard thing to predict, but over time as this market grows and evolves, competition is presence in the market and we're allowing for the possibility of some slight declines over time as we scale the business and building our model to comprehend the possibility if that happen. It may not happen, but we're acknowledging that it's possible that it might happen. Srini Pajjuri -- SMBC Nikko Securities -- Analyst Got it. Thank you. Operator The next question comes from Tore Svanberg from Stifel. Please go ahead. Tore Svanberg -- Stifel Nicolaus -- Analyst Yes, thank you and congratulations to Matt and Tyson. Tyson, we're going to miss you a lot. And before we let you off the hook, I was hoping you could just talk a little bit more again about the long-term vision in IoT? Obviously you become a semiconductor leader. I know you've invested a lot in software and security. So as we look in the next few years, how is this IoT business is going to evolve for the company
[ " cracks in the armor yet in terms of the tightness that we're seeing. And certainly, as new fab capacity ramps toward the end of next year, I think that that should get us to the point where we can get back to serving the demand.\nRaji Gill -- Needham & Company -- Analyst\nAnd if I could just squeeze one more in terms of the IoT you had mentioned broad based growth across wireless but kind of specific focus on some traction on WiFi; any update there in terms of your WiFi efforts? Thank you.\nMatt Johnson -- President\nYeah, this is Matt. So on the WiFi piece; it's been over a year since we completed the acquisition of Redpine. We're very happy with the way that's gone. We've integrated the team, we've seen good market response to the technology and now we're integrating that capability into our ongoing roadmap. It came off from a small base, but we're actually seeing the growth of those WiFi products above the average of our other wireless technologies. So we're seeing good uptick in momentum there. And the fundamental thesis or strategic backdrop for why we did this hasn't changed, if anything we've seen in the last year or two, it's accelerated. So we're happy with where it's at. And we see continuing momentum there.\nRaji Gill -- Needham & Company -- Analyst\nAppreciate it. Thank you.\nOperator\nThe next question comes from Srini Pajjuri from SMBC Nikko Securities. Please go ahead.\nSrini Pajjuri -- SMBC Nikko Securities -- Analyst\nThank you, good morning guys. And let me echo my congrats as well for Tyson and Matt. A couple of questions. First, John, can we talk about the channel inventory. I think you said, it went up four days. Could you put it into perspective and also are you comfortable where the inventory is? Or do you plan to kind of try to build additional level of inventory as we head into the second half of the year?\nTyson Tuttle -- Chief Executive Officer\n", "Yeah, Srini, I mean the main thing to say about this is our operations team has done a great job executing more supply get into shipments out and ensuring that we have adequate channel inventory. The inventory is falling, but we are pleased that we're able to elevate our unit shipments on a sequential basis in the second quarter. I mean anticipate doing that again in the third quarter. So that is a relatively normal level of inventory. Ideally, yes, we would like to increase it from, but overall, that is a relatively normal level.\nSrini Pajjuri -- SMBC Nikko Securities -- Analyst\nGot it. And then, just a follow-up on gross margins, John. So your longer-term model is for mid-50%. I'm just trying to understand how we get to mid-50% from the current levels obviously you said there was some benefit in the quarter. But as we go through the next few quarters or next couple of years, should we assume that this is going to be a gradual decline or I mean do you even that -- I mean should we even expect a decline or do you think the mix itself will take care of itself? Or are there any other factors that we should be aware of as we model gross margins?\nJohn Hollister -- Chief Financial Officer\nSrini it's of course it's a hard thing to predict, but over time as this market grows and evolves, competition is presence in the market and we're allowing for the possibility of some slight declines over time as we scale the business and building our model to comprehend the possibility if that happen. It may not happen, but we're acknowledging that it's possible that it might happen.\nSrini Pajjuri -- SMBC Nikko Securities -- Analyst\nGot it. Thank you.\nOperator\nThe next question comes from Tore Svanberg from Stifel. Please go ahead.\nTore Svanberg -- Stifel Nicolaus -- Analyst\nYes, thank you and congratulations to Matt and Tyson. Tyson, we're going to miss you a lot. And before we let you off the hook, I was hoping you could just talk a little bit more again about the long-term vision in IoT? Obviously you become a semiconductor leader. I know you've invested a lot in software and security. So as we look in the next few years, how is this IoT business is going to evolve for the company" ]
2
[ 0, 0 ]
0
What is the company's revenue and net income guidance for the second quarter?
an Zhang -- Diamond Equity Research -- Analyst Hello.  Bob Shen -- Deputy Investor Relations Director Hi.  Vivian Zhang -- Diamond Equity Research -- Analyst Hello, this is Vivian from Diamond Equity Research. Thank you, management, for taking my question. So we have seen COVID-19 third wave hitting globally, especially in India, Japan, and Southeast Asia since April. So my first question is how will this affect your overseas business? Will the company adjust to your international strategy and growth expectations for the second quarter? Do you provide any guidance on revenue or net income? My second question is could you please give us more color about your 5G-related technology and business? And will this -- will -- and how this will contribute to your future growth while overseas traveling is still down with too many restrictions? Thank you. Yimeng Shi -- Chief Financial Officer Thanks, Vivian. The first question regarding the impact of COVID-19. Yes, as we, you know, as only released and the -- we have impacted by the COVID-19 -- we -- so far. And so we expect that the implications of COVID-19 will continue through the years, the remainder of the year. So we think our other look business, we expect more came from the local connectivity service, local mobile broadbands demand. So their growth as a market mainly came from the Japanese market, which is the biggest drivers for growth in the first quarter of this year. And we believe that the main drivers of growth for the second quarter came from the Japanese markets as well. So for the second 5G-related, we have our CEO, Mr. Chen, to answer. Chaohui Chen -- Co-Founder, Director, and Chief Executive Officer I'm Chen. Let me answer your 5G questions. Because we understand 5G radiofrequency is higher than the 4G. So that means that the same coverage like 4G, 5G need around four times space station number. That's a huge investment. So we understand although coverage maybe it's good. But most challenges indoor coverage because 5G in some places one to build a more viable to replace the fixed broadband. So indoor, how to improve the indoor coverage become a challenge. So that's a bigger question. Our hyper-connectivity technology will improve this part. So for example, like highway. One then is easy to block, and then maybe another carrier in this region to have coverage. So a different carrier may have different coverage. So in one location with a multi-network, we will improve the indoor coverage of plasma Wi-Fi. So Wi-Fi, 5G, 4G, and the available network indoor, we will reselect and evaluate the network. That means we can enable mobile phones, mobile cellular indoors and replace the phase often. That will happen. Let me answer, we will accelerate the 5G coverage and experience, especially in DAT. For the initial stage of the 5G number, the pre-paid number is so many, the coverage is poor. If we can let cross multi-carrier network for 5G coverage, we could improve the whole country, the whole 5G coverage. That means that we can accelerate the 5G to become popular. Currently, I think 5G's most typical application is enabled more by a cloud but the base needs good coverage for this to happen. So that's the first part. And the second part is the 5G roaming globally. So we understand 5G roaming is known to really stuck. For 5G, we haven't -- for 4G roaming, we have solved the problem, and 5G under the phase that's more challenging. So with our technology, we are changing more easily to land a 5G roaming to happen. For example, any device or handset embeds our hyper-connectivity solution processing inside. That means we can let this device use anywhere in the world of the 5G network without, you know, a complicated roaming barring. You just have to acquire a low-cost SIM card and wire our application then use the device -- can use the 5G network device. We create a new way for 5G roaming, simplify the 5G roaming. Another -- also, by the way, we can, you know, improve 5G roaming time latency. So we understand latency is a key point for people with 5G, not only with the people wit
[ "an Zhang -- Diamond Equity Research -- Analyst\nHello. \nBob Shen -- Deputy Investor Relations Director\nHi. \nVivian Zhang -- Diamond Equity Research -- Analyst\nHello, this is Vivian from Diamond Equity Research. Thank you, management, for taking my question. So we have seen COVID-19 third wave hitting globally, especially in India, Japan, and Southeast Asia since April. So my first question is how will this affect your overseas business? Will the company adjust to your international strategy and growth expectations for the second quarter? Do you provide any guidance on revenue or net income? My second question is could you please give us more color about your 5G-related technology and business? And will this -- will -- and how this will contribute to your future growth while overseas traveling is still down with too many restrictions? Thank you.\nYimeng Shi -- Chief Financial Officer\nThanks, Vivian. The first question regarding the impact of COVID-19. Yes, as we, you know, as only released and the -- we have impacted by the COVID-19 -- we -- so far. And so we expect that the implications of COVID-19 will continue through the years, the remainder of the year.\nSo we think our other look business, we expect more came from the local connectivity service, local mobile broadbands demand. So their growth as a market mainly came from the Japanese market, which is the biggest drivers for growth in the first quarter of this year. And we believe that the main drivers of growth for the second quarter came from the Japanese markets as well. So for the second 5G-related, we have our CEO, Mr.\nChen, to answer.\nChaohui Chen -- Co-Founder, Director, and Chief Executive Officer\nI'm Chen. Let me answer your 5G questions. Because we understand 5G radiofrequency is higher than the 4G. So that means that the same coverage like 4G, 5G need around four times space station number.\nThat's a huge investment. So we understand although coverage maybe it's good. But most challenges indoor coverage because 5G in some places one to build a more viable to replace the fixed broadband. So indoor, how to improve the indoor coverage become a challenge.\nSo that's a bigger question. Our hyper-connectivity technology will improve this part. So for example, like highway. One then is easy to block, and then maybe another carrier in this region to have coverage.\n", "So a different carrier may have different coverage. So in one location with a multi-network, we will improve the indoor coverage of plasma Wi-Fi. So Wi-Fi, 5G, 4G, and the available network indoor, we will reselect and evaluate the network. That means we can enable mobile phones, mobile cellular indoors and replace the phase often.\nThat will happen. Let me answer, we will accelerate the 5G coverage and experience, especially in DAT. For the initial stage of the 5G number, the pre-paid number is so many, the coverage is poor. If we can let cross multi-carrier network for 5G coverage, we could improve the whole country, the whole 5G coverage.\nThat means that we can accelerate the 5G to become popular. Currently, I think 5G's most typical application is enabled more by a cloud but the base needs good coverage for this to happen. So that's the first part. And the second part is the 5G roaming globally.\nSo we understand 5G roaming is known to really stuck. For 5G, we haven't -- for 4G roaming, we have solved the problem, and 5G under the phase that's more challenging. So with our technology, we are changing more easily to land a 5G roaming to happen. For example, any device or handset embeds our hyper-connectivity solution processing inside.\nThat means we can let this device use anywhere in the world of the 5G network without, you know, a complicated roaming barring. You just have to acquire a low-cost SIM card and wire our application then use the device -- can use the 5G network device. We create a new way for 5G roaming, simplify the 5G roaming. Another -- also, by the way, we can, you know, improve 5G roaming time latency.\nSo we understand latency is a key point for people with 5G, not only with the people wit" ]
2
[ 0, 0 ]
0
What is the expected capital expenditure for the company in 2022?
nd small cells and towers really helped us as we looked at our growth rate last year. And this year, moving the other direction and an allocation more toward towers and one that we think continues into 2022 as the carriers focus on upgrading their macro sites. And I think -- and maybe this is kind of at the heart of your question around the activity. The carriers, it's very common for them in the -- through past technological upgrade cycles, and we think this will be true in 5G. They'll go back to the sites that they're already on and upgrade those sites for the new technology. That will drive activity. And then as they move toward densification activities, then we'll see more of that focused on small cells and then also some on the macro sites as they go on towers that they're not on currently. But we're in the cycle of the long cycle of upgrading to 5G, those early stages. They're focused on upgrading the sites that they're already on. Simon William Flannery -- Morgan Stanley -- Analyst Great. And just one follow-up on the capex point. I know you're not giving 2022 guidance, but is it fair to think then given 5,000 this year, 5,000 next year, the discretionary capex should be similar to 2021? Daniel K. Schlanger -- Executive Vice President and Chief Financial Officer Yes. I mean I'm going to say yes to everything you just said there, Simon. We don't want to give into the guidance right now. We'll do that in three months. It's not that far from now, and we will get there. But yes, the capex does follow activity levels. So, we'll follow that along and give more specific guidance in October. Simon William Flannery -- Morgan Stanley -- Analyst Thanks. Operator Thank you. We'll hear next from Matt Niknam with Deutsche Bank. Matthew Niknam -- Deutsche Bank -- Analyst Hey, guys. Thank you for taking the question. First, just to go back on small cells. I'm just wondering, you highlighted three points in terms of what drove the lowered outlook for this year and next. I'm just wondering, is there a risk or are you starting to see more self-filled from the carriers taking a greater share of some of the newer small cells coming on there. And then secondly, I hate to go to 2022. But just given the strength in services, you've increased the outlook for services the second time this year. Any initial thoughts you can share in terms of how tower site leasing growth could be trending into next year just as you're seeing momentum on the tower side pick up? Thank you. Jay A. Brown -- President and Chief Executive Officer Yes, Matt. On your first question, I don't see it as a risk to small cells. One of the things that we have been a hallmark of the way we thought about capital investment has been a rigorous process where we consider how we invest capital. And that process that we go through analyzes where we think demand is going to be not in the near-term, but over the long-term for a particular asset. As we're investing in assets like on the small cell side, where we're putting assets in at an initial yield of 6% to 7%, we have to depend on and count on future lease-up of those assets over a long period of time. And so we analyzed the opportunity to invest in those assets based on what do we believe the long-term prospects for lease-up against those assets will ultimately be. There are plenty of places around the U.S. where I think small cells will be built, that our analysis will point to an answer that says that doesn't make sense for us to invest our capital there. We've tried to allocate our capital to the places that have the highest return and the lowest risk against that potential lease-up. And as we talk about the cohort and look at these markets, they have a lot of similar characteristics in terms of what's driving that co-location. And obviously, given the amount of co-location that we've seen, even in just those cohorts that we were talking about this morning, have a lot of data around what leads to that co-location. And so we're trying to make sure we allocate capital based on the lessons that we've learned thus far and whe
[ "nd small cells and towers really helped us as we looked at our growth rate last year. And this year, moving the other direction and an allocation more toward towers and one that we think continues into 2022 as the carriers focus on upgrading their macro sites. And I think -- and maybe this is kind of at the heart of your question around the activity. The carriers, it's very common for them in the -- through past technological upgrade cycles, and we think this will be true in 5G. They'll go back to the sites that they're already on and upgrade those sites for the new technology. That will drive activity. And then as they move toward densification activities, then we'll see more of that focused on small cells and then also some on the macro sites as they go on towers that they're not on currently. But we're in the cycle of the long cycle of upgrading to 5G, those early stages. They're focused on upgrading the sites that they're already on.\nSimon William Flannery -- Morgan Stanley -- Analyst\nGreat. And just one follow-up on the capex point. I know you're not giving 2022 guidance, but is it fair to think then given 5,000 this year, 5,000 next year, the discretionary capex should be similar to 2021?\nDaniel K. Schlanger -- Executive Vice President and Chief Financial Officer\nYes. I mean I'm going to say yes to everything you just said there, Simon. We don't want to give into the guidance right now. We'll do that in three months. It's not that far from now, and we will get there. But yes, the capex does follow activity levels. So, we'll follow that along and give more specific guidance in October.\nSimon William Flannery -- Morgan Stanley -- Analyst\nThanks.\nOperator\nThank you. We'll hear next from Matt Niknam with Deutsche Bank.\nMatthew Niknam -- Deutsche Bank -- Analyst\n", "Hey, guys. Thank you for taking the question. First, just to go back on small cells. I'm just wondering, you highlighted three points in terms of what drove the lowered outlook for this year and next. I'm just wondering, is there a risk or are you starting to see more self-filled from the carriers taking a greater share of some of the newer small cells coming on there. And then secondly, I hate to go to 2022. But just given the strength in services, you've increased the outlook for services the second time this year. Any initial thoughts you can share in terms of how tower site leasing growth could be trending into next year just as you're seeing momentum on the tower side pick up? Thank you.\nJay A. Brown -- President and Chief Executive Officer\nYes, Matt. On your first question, I don't see it as a risk to small cells. One of the things that we have been a hallmark of the way we thought about capital investment has been a rigorous process where we consider how we invest capital. And that process that we go through analyzes where we think demand is going to be not in the near-term, but over the long-term for a particular asset. As we're investing in assets like on the small cell side, where we're putting assets in at an initial yield of 6% to 7%, we have to depend on and count on future lease-up of those assets over a long period of time. And so we analyzed the opportunity to invest in those assets based on what do we believe the long-term prospects for lease-up against those assets will ultimately be. There are plenty of places around the U.S. where I think small cells will be built, that our analysis will point to an answer that says that doesn't make sense for us to invest our capital there. We've tried to allocate our capital to the places that have the highest return and the lowest risk against that potential lease-up. And as we talk about the cohort and look at these markets, they have a lot of similar characteristics in terms of what's driving that co-location. And obviously, given the amount of co-location that we've seen, even in just those cohorts that we were talking about this morning, have a lot of data around what leads to that co-location. And so we're trying to make sure we allocate capital based on the lessons that we've learned thus far and whe" ]
2
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0
How many years was the woman help prisoner for?
Austrian police believe a 73-year-old man held his daughter captive in his cellar for the past two decades and fathered at least six children with her, according to police and state-run news reports Sunday. The woman, identified as 42-year-old Elisabeth F., has been missing since 1984, when she was 18 years old, police said at a news conference. The situation came to light earlier this month after her daughter -- a 19-year-old woman, identified as Kristen F. -- was hospitalized in Amstetten after falling unconscious, according to police. She was admitted to a hospital in Amstetten, outside Vienna, by her grandfather with a note from her biological mother requesting help. Amstetten is a rural town about 150 km (93 miles) west of Vienna. But police said a DNA test later revealed her grandfather, Josef F., was also her father, according to ORF, Austria's state-run news agency. That sparked a police investigation, which revealed that Josef F. may have fathered at least six children with his daughter, forcing her and three of the surviving children to live in the cellar of his house, according to ORF's Peter Schmitzberger. The children are now between 5 and 19 years old. Police are awaiting DNA tests to verify their relationship to Josef F., who faces arrest for "severe crimes against family members," according to police. So far, he has not given a statement to police. Police spokesman Franz Polzer told ORF that the 73-year-old has led police to several hidden rooms in his cellar accessible only by an electronic passcode that he provided to police. Watch a report on the discovery » On Sunday, police searched the hidden rooms where Josef F. admitted he kept his daughter and their children, Polzer told ORF. The rooms included sleeping quarters, a kitchen and a bathroom, which Josef F. told police he built, Polzer said. Neighbors told ORF they were shocked to hear the news, and had no indication such horrors were taking place in their town. "One can't imagine how it could happen, how nobody could realize anything of what was going on in the cellar of this house," Schmitzberger told CNN. "It's quite unimaginable." Acting on "a confidential tip," Amstetten police apprehended Josef F. and Elisabeth F. on Saturday near the hospital for questioning, according to a police statement. Once police assured the daughter that she would never have contact with her father again, "she was able to tell the whole story," Schmitzberger said. Josef F. lived upstairs with his wife, Rosemarie F., who police said had no idea about her husband's other family living in the cellar. Josef F. and Rosemarie F. had adopted three of the children that he had with his daughter, according to police. He told his wife that his missing daughter had dropped the unwanted children off at the house because she could not take care of them, police said. The other three children -- Kerstin, 19; Stefan, 18; and Felix, 5 -- remained locked in the basement with their mother, according to police. None had seen the light of day during their entire time in captivity, police said. After she was detained Saturday, Elisabeth F. gave police a "psychologically and physically disturbed impression," police said in a statement. She told them her story after she was assured her children would be protected from further harm. She said her father began sexually abusing her at age 11. On August 8, 1984 -- weeks before she was reported missing -- her father enticed her into the basement, where he drugged her, put her in handcuffs and locked her in a room, she told police. For the next 24 years, she was constantly raped by her father, resulting in the six surviving children, she said, according to the police statement. She told police she gave birth to twins in 1996, but one of the babies died a few days later as a result of neglect, and Josef F. removed the infant's body
[ "Austrian police believe a 73-year-old man held his daughter captive in his cellar for the past two decades and fathered at least six children with her, according to police and state-run news reports Sunday. The woman, identified as 42-year-old Elisabeth F., has been missing since 1984, when she was 18 years old, police said at a news conference. The situation came to light earlier this month after her daughter -- a 19-year-old woman, identified as Kristen F. -- was hospitalized in Amstetten after falling unconscious, according to police. She was admitted to a hospital in Amstetten, outside Vienna, by her grandfather with a note from her biological mother requesting help. Amstetten is a rural town about 150 km (93 miles) west of Vienna. But police said a DNA test later revealed her grandfather, Josef F., was also her father, according to ORF, Austria's state-run news agency. That sparked a police investigation, which revealed that Josef F. may have fathered at least six children with his daughter, forcing her and three of the surviving children to live in the cellar of his house, according to ORF's Peter Schmitzberger. The children are now between 5 and 19 years old. Police are awaiting DNA tests to verify their relationship to Josef F., who faces arrest for \"severe crimes against family members,\" according to police. So far, he has not given a statement to police. Police spokesman Franz Polzer told ORF that the 73-year-old has led police to several hidden rooms in his cellar accessible only by an electronic passcode that he provided to police. Watch a report on the discovery » On Sunday, police searched the hidden rooms where Josef F. admitted he kept his daughter and their children, Polzer told ORF. The rooms included sleeping quarters, a kitchen and a bathroom, which Josef F. told police he built, Polzer said. Neighbors told ORF they were shocked to hear the news, and had no indication such horrors were taking place in their town. \"One can't imagine how it could happen, how nobody could realize anything of what was going on in the cellar of this house,\" Schmitzberger told CNN. \"It's quite unimaginable.\" Acting on \"a confidential tip,\" Amstetten police apprehended Josef F. and Elisabeth F. on Saturday near the hospital for questioning, according to a police statement. ", "Once police assured the daughter that she would never have contact with her father again, \"she was able to tell the whole story,\" Schmitzberger said. Josef F. lived upstairs with his wife, Rosemarie F., who police said had no idea about her husband's other family living in the cellar. Josef F. and Rosemarie F. had adopted three of the children that he had with his daughter, according to police. He told his wife that his missing daughter had dropped the unwanted children off at the house because she could not take care of them, police said. The other three children -- Kerstin, 19; Stefan, 18; and Felix, 5 -- remained locked in the basement with their mother, according to police. None had seen the light of day during their entire time in captivity, police said. After she was detained Saturday, Elisabeth F. gave police a \"psychologically and physically disturbed impression,\" police said in a statement. She told them her story after she was assured her children would be protected from further harm. She said her father began sexually abusing her at age 11. On August 8, 1984 -- weeks before she was reported missing -- her father enticed her into the basement, where he drugged her, put her in handcuffs and locked her in a room, she told police. For the next 24 years, she was constantly raped by her father, resulting in the six surviving children, she said, according to the police statement. She told police she gave birth to twins in 1996, but one of the babies died a few days later as a result of neglect, and Josef F. removed the infant's body" ]
2
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0
What is the company's guidance for the outlook on an annual year-over-year basis for the first quarter of 2022
in the U.S. first. And we've certainly seen that trend in -- as 5G has started to be deployed. I think that's one of the reasons why we have industry-leading tower revenue growth at 6%. I also think it's indicative of what we're going to see on the small cell side. The vast majority of the investment that we've made in fiber and small cells has been in those top 30 markets in the U.S. It's the locations where we believe the vast majority of the capital will be going for the densification efforts, at least in the near to medium term. And over the long term, we think those assets, much like towers have in those urban areas, the investment will skew toward that urban activity and future densification. So some of the best assets are in those dense urban areas. We think we'll see a similar thing with fiber and small cells that we've seen historically with towers and are experiencing as we move into 5G already with the tower footprint. On your second question, we certainly believe that there's an opportunity around edge data centers and have positioned ourselves several years ago with our investment in Vapor to take advantage of that opportunity. I would put that in the category of -- that's an upside case for us. If data traffic gets to the point where edge data centers become a meaningful component of the overall wireless network, an upside case in our investment in small cells and fiber. We did not underwrite that in our base case nor are we underwriting it day to day as we invest in fiber and small cells. But if you're a believer that ultimately, there's going to be so much data traffic in the network that these metro data centers or edge data centers are going to be necessary for wireless, we're going to be in the upside outcomes for our small cells and fiber. And so we're certainly positioned well for that opportunity. And I would say, today, it seems more probable that that's a likely outcome than what we would have said several years ago, but it's not in our base case underwrite as we think about what the growth and returns will be on the assets. But there are certainly some signs as referenced earlier in some of the questions -- in the question around fixed wireless that would suggest maybe that opportunity is growing and becoming more likely. And I would start first with the benefit we're going to get out of fiber and small cells as a result of that. And I think we're really well-positioned vis-a-vis the fiber and our investment in Vapor to benefit if we get all the way to the upside cases where these edge data centers are necessary and critical components for the wireless networks. Michael Rollins -- Citi -- Analyst Thanks. Operator We'll hear next from Phil Cusick with J.P. Morgan. Phil Cusick -- J.P. Morgan -- Analyst Hey, guys. Just a summary, and I apologize if you pressed a few of these already. But as you think about the activity through this year, do you expect activity to be ramping through this year? It sounds like it. And then do you think that can be maintained next year? Or are there other carriers that are sort of going to be coming down, do you expect? Jay Brown -- Chief Executive Officer Phil, as we think about any given year, and I think we've talked about some on the call as we've tried to point to some of the onetime items in the first quarter. When we think about the guidance and the outlook on an annual year-over-year basis because we think it's the best way to look at the business, as we get further into the back half of the year, maybe we can be a little bit more descriptive about the ramp in activity and what we're seeing is falling into the first half versus the second half of the year. But in general, this is shaping up to be a pretty normal year in terms of the way the activity is loaded into a calendar year. I don't want to really get into giving guidance for 2023. We typically or historically have done that in October, and we would expect to do that again this year. So we're two calls away from giving you an outlook for 2023. Phil Cusick -- J.P. Morgan -- Analyst I guess. Thank you. Oper
[ " in the U.S. first.\nAnd we've certainly seen that trend in -- as 5G has started to be deployed. I think that's one of the reasons why we have industry-leading tower revenue growth at 6%. I also think it's indicative of what we're going to see on the small cell side. The vast majority of the investment that we've made in fiber and small cells has been in those top 30 markets in the U.S.\nIt's the locations where we believe the vast majority of the capital will be going for the densification efforts, at least in the near to medium term. And over the long term, we think those assets, much like towers have in those urban areas, the investment will skew toward that urban activity and future densification. So some of the best assets are in those dense urban areas. We think we'll see a similar thing with fiber and small cells that we've seen historically with towers and are experiencing as we move into 5G already with the tower footprint.\nOn your second question, we certainly believe that there's an opportunity around edge data centers and have positioned ourselves several years ago with our investment in Vapor to take advantage of that opportunity. I would put that in the category of -- that's an upside case for us. If data traffic gets to the point where edge data centers become a meaningful component of the overall wireless network, an upside case in our investment in small cells and fiber. We did not underwrite that in our base case nor are we underwriting it day to day as we invest in fiber and small cells.\nBut if you're a believer that ultimately, there's going to be so much data traffic in the network that these metro data centers or edge data centers are going to be necessary for wireless, we're going to be in the upside outcomes for our small cells and fiber. And so we're certainly positioned well for that opportunity. And I would say, today, it seems more probable that that's a likely outcome than what we would have said several years ago, but it's not in our base case underwrite as we think about what the growth and returns will be on the assets. But there are certainly some signs as referenced earlier in some of the questions -- in the question around fixed wireless that would suggest maybe that opportunity is growing and becoming more likely.\n", "And I would start first with the benefit we're going to get out of fiber and small cells as a result of that. And I think we're really well-positioned vis-a-vis the fiber and our investment in Vapor to benefit if we get all the way to the upside cases where these edge data centers are necessary and critical components for the wireless networks.\nMichael Rollins -- Citi -- Analyst\nThanks.\nOperator\nWe'll hear next from Phil Cusick with J.P. Morgan.\nPhil Cusick -- J.P. Morgan -- Analyst\nHey, guys. Just a summary, and I apologize if you pressed a few of these already. But as you think about the activity through this year, do you expect activity to be ramping through this year? It sounds like it. And then do you think that can be maintained next year? Or are there other carriers that are sort of going to be coming down, do you expect?\nJay Brown -- Chief Executive Officer\nPhil, as we think about any given year, and I think we've talked about some on the call as we've tried to point to some of the onetime items in the first quarter. When we think about the guidance and the outlook on an annual year-over-year basis because we think it's the best way to look at the business, as we get further into the back half of the year, maybe we can be a little bit more descriptive about the ramp in activity and what we're seeing is falling into the first half versus the second half of the year. But in general, this is shaping up to be a pretty normal year in terms of the way the activity is loaded into a calendar year. I don't want to really get into giving guidance for 2023.\nWe typically or historically have done that in October, and we would expect to do that again this year. So we're two calls away from giving you an outlook for 2023.\nPhil Cusick -- J.P. Morgan -- Analyst\nI guess. Thank you.\nOper" ]
2
[ 0, 0 ]
0
Who does the Iraqi woman care for?
Shada's back aches more and more each day as she literally bears her family's burden. Clothed in a black robe, she strains under her husband's weight. Shada now carries her husband around the house. His legs were blown off in a bombing. Murtada, a 29-year-old taxi driver, was once a proud husband and father. But one morning last October, he kissed his family good-bye and set off to work. Within hours, their world was shattered. A bomb blew off both his legs above the knee. "I lost consciousness for a bit. I knew I was wounded," he says. "I was under the car. I saw my legs were severed, just flesh and skin. I was holding my legs, bleeding." Watch Shada strain to carry her husband » Helpless, the daily burden is now on Shada. She carries Murtada when he needs to be moved. She can't even leave the house because of the constant care she provides her husband. "I want to work, but I can't really because then who will stay with my husband?" she says. "Who will take him to the bathroom? My first concern every morning is my husband." See the struggles of Iraqi women » The attack did to Murtada what roadside bombs, rocket fire, and sniper shootings have done to thousands of Iraqis. Since the war began, the estimates of wounded Iraqis have ranged from tens of thousands to hundreds of thousands of people. Go inside Iraq with CNN's Arwa Damon » According to Iraq's Health Ministry, 25 percent of the wounded have lost at least one limb. Murtada is one of these grim stats, and his life is now a nightmare. He has stumps where his legs used to be and hasn't been able to get prosthetics. He moves around by lifting himself with his arms, riding in a wheelchair or being carried by his wife. Life has forced Shada to tap into a physical and emotional strength she did not know she possessed. Their 3-year-old son helps care for his father. One time, Murtada admits his thoughts turned dark. "I was thinking, 'Is this really going to be my life?' And then I was thinking about my son and how I can't provide for him, and then I began thinking about poisoning myself." This small family lives in a small rented house in a Shiite neighborhood in western Baghdad. Shada has endured many tough times amid war and conflict. Her brother was shot dead and her father died because of poor health care. Neighbors have helped the family financially, and Shada tries to make ends meet by selling gasoline on the street. But the circumstances have forced the man she relied on to rely on her. "I look at him like a baby, with the needs of a baby," she says. "Nobody but me can help him. I cannot go to the markets because of him. I am asking people for help because I cannot leave him alone in the house." E-mail to a friend
[ "Shada's back aches more and more each day as she literally bears her family's burden. Clothed in a black robe, she strains under her husband's weight. Shada now carries her husband around the house. His legs were blown off in a bombing. Murtada, a 29-year-old taxi driver, was once a proud husband and father. But one morning last October, he kissed his family good-bye and set off to work. Within hours, their world was shattered. A bomb blew off both his legs above the knee. \"I lost consciousness for a bit. I knew I was wounded,\" he says. \"I was under the car. I saw my legs were severed, just flesh and skin. I was holding my legs, bleeding.\" Watch Shada strain to carry her husband » Helpless, the daily burden is now on Shada. She carries Murtada when he needs to be moved. She can't even leave the house because of the constant care she provides her husband. \"I want to work, but I can't really because then who will stay with my husband?\" she says. \"Who will take him to the bathroom? My first concern every morning is my husband.\" See the struggles of Iraqi women » The attack did to Murtada what roadside bombs, rocket fire, and sniper shootings have done to thousands of Iraqis. Since the war began, the estimates of wounded Iraqis have ranged from tens of thousands to hundreds of thousands of people. Go inside Iraq with CNN's Arwa Damon » According to Iraq's Health Ministry, 25 percent of the wounded have lost at least one limb. Murtada is one of these grim stats, and his life is now a nightmare. He has stumps where his legs used to be and hasn't been able to get prosthetics. He moves around by lifting himself with his arms, riding in a wheelchair or being carried by his wife. Life has forced Shada to tap into a physical and emotional strength she did not know she possessed. Their 3-year-old son helps care for his father. One time, Murtada admits his thoughts turned dark. \"I was thinking, 'Is this really going to be my life?' And then I was thinking about my son and how I can't provide for him, and then I began thinking about poisoning myself.\" This small family lives in a small rented house in a Shiite neighborhood in western Baghdad. Shada has endured many tough times amid war and conflict. ", "Her brother was shot dead and her father died because of poor health care. Neighbors have helped the family financially, and Shada tries to make ends meet by selling gasoline on the street. But the circumstances have forced the man she relied on to rely on her. \"I look at him like a baby, with the needs of a baby,\" she says. \"Nobody but me can help him. I cannot go to the markets because of him. I am asking people for help because I cannot leave him alone in the house.\" E-mail to a friend" ]
2
[ 1, 0 ]
1
What is the growth rate of the wireless market in terms of CAGR
? Tyson Tuttle -- Chief Executive Officer Yeah, Tore. Thanks a lot for the kind words. I'm going to miss traveling with you and your thoughtful reports and questions. So -- but we're not done yet here, we got to get a little bit of time to go. We started out over a decade ago, I think you remember when we said, hey, we're going to pivot the company to IoT and we had been a high performance mixed signal an RF provider of various components across a diverse set of markets. But we viewed the IoT as kind of the next frontier where we're integrating wireless connectivity into everything outside of the PC and handset. And we predicted there would be tens of thousands of customers and thousands of applications, but that technology over time and that that would be a long-term growth trend where we could be able to control the integration path to not just do the SoC and the chips to integrate wireless and battery management and processing in memory and sensor interfaces and now security and AI and a lot of things but also build on top of that, build our differentiation to where you have communication protocol stacks and they become experts in networking and communication standards to develop tools and the channel to sell across all of those markets, effectively and to drive simplicity so that we're able to effectively support those customers. And we've seen that business grow from several hundred million to now over $650 million this year and divesting our Infrastructure and Automotive business, which was essentially the legacy business to be able to focus on this is I think a real testament to how that that strategy has played out here over the last decade. And as we look forward, we see our position is strong and growing and strength. We've now -- we're now supporting a multitude of wireless standards to a very -- to address various segments of the market. We've got, we're supplying solutions to industry leaders. We've got a huge pipeline of design wins and decades of growth ahead in terms of the wireless market is growing at about a 15% CAGR so 5 times or more GDP. And so that puts the company on a really good footing. And there's a lot of work to do to get out our new products and to continue to innovate, to continue to build out those teams, to continue to support customers in a more efficient way, so that we can continue to gain leverage off of the bottom line as the revenue grows. And I couldn't be more excited about what we -- more proud of what we've created and more excited about the path ahead and I'm delighted. I've been working with Matt here for the last three, four years, you actually the last year, it seems like even longer than that, but he is a fantastic leader of the team. And the team really rallied around him and he has got energy and passion and is going to do a great job carrying our values and our strategy and then evolving that into the future and leading the team. So thank you all for your patience over the last decade. It's been a really, really exciting time. And I think the future is very, very bright for Silicon Labs as I move onto the Technical Advisory Board and get to chair from the sidelines. Tore Svanberg -- Stifel Nicolaus -- Analyst Thank you for that, Tyson. As a follow-up, John, you mentioned, total bookings of $400 million, which translates to a book to bill of 1.43. Could you calibrate that number a little bit more, I mean is the bulk of those bookings in IoT any other color you can share? John Hollister -- Chief Financial Officer Yeah, Tore, the majority of the bookings are in IoT and the calibration you're correctly viewing that it's very high, and it has been high now for three quarters. And what that means is, we have an extraordinarily high level of backlog coverage in the business right now. It really is a supply constrained in the -- as we've been indicating we're working constantly to activate as much supply as we can to drive the growth, but it is a very high level of bookings. Tore Svanberg -- Stifel Nicolaus -- Analyst Sounds great. Thank you very much. Operator This concludes o
[ "?\nTyson Tuttle -- Chief Executive Officer\nYeah, Tore. Thanks a lot for the kind words. I'm going to miss traveling with you and your thoughtful reports and questions. So -- but we're not done yet here, we got to get a little bit of time to go. We started out over a decade ago, I think you remember when we said, hey, we're going to pivot the company to IoT and we had been a high performance mixed signal an RF provider of various components across a diverse set of markets. But we viewed the IoT as kind of the next frontier where we're integrating wireless connectivity into everything outside of the PC and handset. And we predicted there would be tens of thousands of customers and thousands of applications, but that technology over time and that that would be a long-term growth trend where we could be able to control the integration path to not just do the SoC and the chips to integrate wireless and battery management and processing in memory and sensor interfaces and now security and AI and a lot of things but also build on top of that, build our differentiation to where you have communication protocol stacks and they become experts in networking and communication standards to develop tools and the channel to sell across all of those markets, effectively and to drive simplicity so that we're able to effectively support those customers. And we've seen that business grow from several hundred million to now over $650 million this year and divesting our Infrastructure and Automotive business, which was essentially the legacy business to be able to focus on this is I think a real testament to how that that strategy has played out here over the last decade. And as we look forward, we see our position is strong and growing and strength. We've now -- we're now supporting a multitude of wireless standards to a very -- to address various segments of the market. We've got, we're supplying solutions to industry leaders. We've got a huge pipeline of design wins and decades of growth ahead in terms of the wireless market is growing at about a 15% CAGR so 5 times or more GDP.\n", "And so that puts the company on a really good footing. And there's a lot of work to do to get out our new products and to continue to innovate, to continue to build out those teams, to continue to support customers in a more efficient way, so that we can continue to gain leverage off of the bottom line as the revenue grows. And I couldn't be more excited about what we -- more proud of what we've created and more excited about the path ahead and I'm delighted. I've been working with Matt here for the last three, four years, you actually the last year, it seems like even longer than that, but he is a fantastic leader of the team. And the team really rallied around him and he has got energy and passion and is going to do a great job carrying our values and our strategy and then evolving that into the future and leading the team. So thank you all for your patience over the last decade. It's been a really, really exciting time. And I think the future is very, very bright for Silicon Labs as I move onto the Technical Advisory Board and get to chair from the sidelines.\nTore Svanberg -- Stifel Nicolaus -- Analyst\nThank you for that, Tyson. As a follow-up, John, you mentioned, total bookings of $400 million, which translates to a book to bill of 1.43. Could you calibrate that number a little bit more, I mean is the bulk of those bookings in IoT any other color you can share?\nJohn Hollister -- Chief Financial Officer\nYeah, Tore, the majority of the bookings are in IoT and the calibration you're correctly viewing that it's very high, and it has been high now for three quarters. And what that means is, we have an extraordinarily high level of backlog coverage in the business right now. It really is a supply constrained in the -- as we've been indicating we're working constantly to activate as much supply as we can to drive the growth, but it is a very high level of bookings.\nTore Svanberg -- Stifel Nicolaus -- Analyst\nSounds great. Thank you very much.\nOperator\nThis concludes o" ]
2
[ 0, 0 ]
0
What was the revenue growth rate for Xylem's emerging markets team in the first quarter of 2021
ow please turn to Slide 9, and I'll turn the call back over to Patrick. Patrick Decker -- Chief Executive Officer Thanks, Sandy. I'd like to revisit the three focus areas we highlighted coming into the year: the performance of our growth platforms, the team's operational discipline and our progress on sustainability. Turning first to our growth platforms. You've already heard about our emerging markets team's exceptional first-quarter performance with revenue and orders up 33% and 21%, respectively. Up until now, China and India have taken the spotlight. In both countries, our investments in capabilities and localization have created strong engines for sustainable growth. But of course, other areas of the emerging markets also represent great opportunity for us. Many countries in Eastern Europe, for example, continue to modernize their economies and represent a long runway of investment in water infrastructure. And in Africa, there are clearly big water challenges to solve as the higher-growth nations continue to urbanize. We expect emerging markets, overall, will continue to be a source of healthy, sustainable growth for the foreseeable future. The second platform that continues to underpin sustainable growth is our digital strategy. Our broad portfolio enables us to combine multiple digital technologies into integrated offers, including AI-enabled software platforms, advanced communications networks and automated end points. Those capabilities have been key to our commercial momentum over the last several quarters with customer adoption of digital solutions accelerating through the pandemic. We've spoken previously about our headline wins in Texas and Ohio. In Q1, we added a large transformation project in Greensboro, North Carolina, and we have just signed another exciting deal to be announced in the next few weeks. All of these projects deliver network as a service, software as a service and advanced analytics. In each case, Xylem's ability to bring a suite of transformational capabilities distinguished us and was essential to winning. And just last week, we further extended the digital capabilities we can offer our customers by partnering with Esri. Esri is the global leader in geographic information systems, GIS for short. These systems are an essential component of utility's operating environment. By integrating their technology with our advanced digital solutions, water operators achieved unprecedented network visibility and a clear path to increased operational efficiency and sustainability. And with last week's agreement, Xylem and Esri are bringing that powerful combination to the water sector together. Our partnership includes developing joint solution road maps and joint selling to water utilities around the world. We are very excited about this partnership and about the value we can deliver to customers together. Turning next to operating discipline. Our operational capabilities were absolutely key to coming through 2020 on strong foundations. As you know, last year, we made difficult but essential decisions on structural cost. And we're now clearly seeing the benefit of those actions. In addition, the team drove strong productivity gains in the first quarter, which offset the early impact of rising inflation. The result was solid margin expansion with incremental margins coming in at 55%. Over the last year, we've learned that we can do more with less, and we will remain absolutely vigilant on cost as economies reopen and demand continues to recover. That said, we are expecting some impact from the broad-based inflation and component supply challenges that are affecting the industrial and tech sectors. Now we've already taken action by strategically investing in inventory to support areas of strong demand, and we will continue driving productivity and pricing to mitigate inflation. Still, the supply environment is likely to remain challenging for some time. The third focus area we highlighted coming into the year was sustainability. I think many of us worried that the cause of sustainability might suffer s
[ "ow please turn to Slide 9, and I'll turn the call back over to Patrick.\nPatrick Decker -- Chief Executive Officer\nThanks, Sandy. I'd like to revisit the three focus areas we highlighted coming into the year: the performance of our growth platforms, the team's operational discipline and our progress on sustainability. Turning first to our growth platforms. You've already heard about our emerging markets team's exceptional first-quarter performance with revenue and orders up 33% and 21%, respectively.\nUp until now, China and India have taken the spotlight. In both countries, our investments in capabilities and localization have created strong engines for sustainable growth. But of course, other areas of the emerging markets also represent great opportunity for us. Many countries in Eastern Europe, for example, continue to modernize their economies and represent a long runway of investment in water infrastructure.\nAnd in Africa, there are clearly big water challenges to solve as the higher-growth nations continue to urbanize. We expect emerging markets, overall, will continue to be a source of healthy, sustainable growth for the foreseeable future. The second platform that continues to underpin sustainable growth is our digital strategy. Our broad portfolio enables us to combine multiple digital technologies into integrated offers, including AI-enabled software platforms, advanced communications networks and automated end points.\nThose capabilities have been key to our commercial momentum over the last several quarters with customer adoption of digital solutions accelerating through the pandemic. We've spoken previously about our headline wins in Texas and Ohio. In Q1, we added a large transformation project in Greensboro, North Carolina, and we have just signed another exciting deal to be announced in the next few weeks. All of these projects deliver network as a service, software as a service and advanced analytics.\nIn each case, Xylem's ability to bring a suite of transformational capabilities distinguished us and was essential to winning. And just last week, we further extended the digital capabilities we can offer our customers by partnering with Esri. Esri is the global leader in geographic information systems, GIS for short. These systems are an essential component of utility's operating environment.\n", "By integrating their technology with our advanced digital solutions, water operators achieved unprecedented network visibility and a clear path to increased operational efficiency and sustainability. And with last week's agreement, Xylem and Esri are bringing that powerful combination to the water sector together. Our partnership includes developing joint solution road maps and joint selling to water utilities around the world. We are very excited about this partnership and about the value we can deliver to customers together.\nTurning next to operating discipline. Our operational capabilities were absolutely key to coming through 2020 on strong foundations. As you know, last year, we made difficult but essential decisions on structural cost. And we're now clearly seeing the benefit of those actions.\nIn addition, the team drove strong productivity gains in the first quarter, which offset the early impact of rising inflation. The result was solid margin expansion with incremental margins coming in at 55%. Over the last year, we've learned that we can do more with less, and we will remain absolutely vigilant on cost as economies reopen and demand continues to recover. That said, we are expecting some impact from the broad-based inflation and component supply challenges that are affecting the industrial and tech sectors.\nNow we've already taken action by strategically investing in inventory to support areas of strong demand, and we will continue driving productivity and pricing to mitigate inflation. Still, the supply environment is likely to remain challenging for some time. The third focus area we highlighted coming into the year was sustainability. I think many of us worried that the cause of sustainability might suffer s" ]
2
[ 0, 0 ]
0
Who picked up interest on subsidized Stafford loans?
Do you need to borrow to fund a college education for yourself or your child? Be sure you're taking my "Clark Smart" approach to borrowing. Clark Howard: If a four-year college is too cost prohibitive, try a two-year institution at a fraction of the cost Subsidized Stafford loans are the single best source of money you can borrow. The interest is picked up by the federal government -- courtesy of your fellow taxpayers -- while you're in school and for a six-month grace period following graduation. Once the loans go into repayment, subsidized Stafford loans taken out during the 2009-10 school year carry a fixed interest rate of 5.6 percent. The rate will be lower still at 4.5 percent for loans originating during the next school year, and all the way down to 3.4 percent the following year. There are, however, limits to the amount you can borrow. Freshman can get up to $3,500 annually; sophomores can borrow $4,500 each year; and juniors and seniors cap out at $5,500. Once you exhaust your subsidized Stafford stockpile, you want to move on to unsubsidized Stafford loans, which are now offered at 6.8 percent. Remember, though, to borrow as little as possible because the interest on these unsubsidized loans accumulates while you're in school. Watch smart choices when paying back the loans » As a third option, parents can take out PLUS loans, which are issued at a fixed rate of 8.25 percent. Visit FAFSA.ed.gov to determine your eligibility for all these loan options. What's one type of loan you do not want to take out? Private student loans. Back in 2005, the private student loan industry used its political influence to gain the right to use any and all tactics (short of threatening bodily harm or actually causing it) in their efforts to collect money. In fact, private student loans typically can't even be dismissed in bankruptcy. Remember my rule of thumb when it comes to determining what level of borrowing you can comfortably handle: Do not take on a total loan amount that exceeds the likely first-year earnings in your field. If college is still too cost-prohibitive after you've gotten all the financial aid and loans you can, I'd love for you to think about starting your degree at a two-year community college. The cost of a community college can be as little as one-tenth to one-twentieth that of a private college, as I discovered when I researched schools with my eldest daughter. Let's say you decide to do your first two years at a community college. People often worry about the lack of prestige associated with these kinds of schools. But most employers only look at the name of the traditional college that issues your degree after you've put in your time at a community school. In fact, an employer might even prefer someone who worked their way through a community college and had to struggle financially. Doesn't that show more fortitude in a job candidate than the person who cruised through a 4-year college on the silver-spoon plan? And for those of you already dealing with paying off student loan debt, there's a radical change coming that I want you to know about. Effective July 1, an income-based repayment plan (IBR) became available to borrowers with Stafford loans and Grad PLUS loans. Under the new program, your payment will be based on your current income and family size. That means your monthly payment could be an unprecedented zero dollars if you qualify! Contact your lender to see if you qualify and to apply for the IBR. In addition to the IBR, other new provisions that went into effect July 1 include loan forgiveness options for certain workers. Nonprofit workers and some government employees are eligible for loan forgiveness after making on-time monthly payments for 10 years. If you work in the traditional for-profit sector, it will take 25 years of on-time payments before you're eligible for loan forgiveness. Visit LoanConsolidation.ed.gov for more information.
[ "Do you need to borrow to fund a college education for yourself or your child? Be sure you're taking my \"Clark Smart\" approach to borrowing. Clark Howard: If a four-year college is too cost prohibitive, try a two-year institution at a fraction of the cost Subsidized Stafford loans are the single best source of money you can borrow. The interest is picked up by the federal government -- courtesy of your fellow taxpayers -- while you're in school and for a six-month grace period following graduation. Once the loans go into repayment, subsidized Stafford loans taken out during the 2009-10 school year carry a fixed interest rate of 5.6 percent. The rate will be lower still at 4.5 percent for loans originating during the next school year, and all the way down to 3.4 percent the following year. There are, however, limits to the amount you can borrow. Freshman can get up to $3,500 annually; sophomores can borrow $4,500 each year; and juniors and seniors cap out at $5,500. Once you exhaust your subsidized Stafford stockpile, you want to move on to unsubsidized Stafford loans, which are now offered at 6.8 percent. Remember, though, to borrow as little as possible because the interest on these unsubsidized loans accumulates while you're in school. Watch smart choices when paying back the loans » As a third option, parents can take out PLUS loans, which are issued at a fixed rate of 8.25 percent. Visit FAFSA.ed.gov to determine your eligibility for all these loan options. What's one type of loan you do not want to take out? Private student loans. Back in 2005, the private student loan industry used its political influence to gain the right to use any and all tactics (short of threatening bodily harm or actually causing it) in their efforts to collect money. In fact, private student loans typically can't even be dismissed in bankruptcy. Remember my rule of thumb when it comes to determining what level of borrowing you can comfortably handle: Do not take on a total loan amount that exceeds the likely first-year earnings in your field. If college is still too cost-prohibitive after you've gotten all the financial aid and loans you can, I'd love for you to think about starting your degree at a two-year community college. ", "The cost of a community college can be as little as one-tenth to one-twentieth that of a private college, as I discovered when I researched schools with my eldest daughter. Let's say you decide to do your first two years at a community college. People often worry about the lack of prestige associated with these kinds of schools. But most employers only look at the name of the traditional college that issues your degree after you've put in your time at a community school. In fact, an employer might even prefer someone who worked their way through a community college and had to struggle financially. Doesn't that show more fortitude in a job candidate than the person who cruised through a 4-year college on the silver-spoon plan? And for those of you already dealing with paying off student loan debt, there's a radical change coming that I want you to know about. Effective July 1, an income-based repayment plan (IBR) became available to borrowers with Stafford loans and Grad PLUS loans. Under the new program, your payment will be based on your current income and family size. That means your monthly payment could be an unprecedented zero dollars if you qualify! Contact your lender to see if you qualify and to apply for the IBR. In addition to the IBR, other new provisions that went into effect July 1 include loan forgiveness options for certain workers. Nonprofit workers and some government employees are eligible for loan forgiveness after making on-time monthly payments for 10 years. If you work in the traditional for-profit sector, it will take 25 years of on-time payments before you're eligible for loan forgiveness. Visit LoanConsolidation.ed.gov for more information." ]
2
[ 1, 1 ]
1
What is the name of the journalist launching a consulting business?
Jennifer Thomas was looking at life with renewed energy: She had just survived a serious operation, and she was at a crossroads in her career. After 20 years as a producer in the stressful business of TV news, the challenge wasn't there for her anymore. For eight weeks, as she recovered from the removal of a large noncancerous tumor from her uterus, Thomas thought about her next steps. "I told myself I was going to work to do the things that I enjoy, things that are related to the news," she said. Thomas had recently conducted news production workshops for kids, so she already knew that she "loved people and talking to people about the news. That made me start thinking that if I could do it all the time and get paid for it, I'd really enjoy it." Within a year, Thomas had left her job at CNN's HLN network to start a Georgia-based media consulting business with clients such as singer/actress Jennifer Holliday, former Bell Biv DeVoe singer Ron DeVoe, actor Boris Kodjoe, actress Nicole Ari Parker and former supermodel Beverly Johnson. During her journey, Thomas learned that working for yourself often requires scary first steps, generous friends and mentors, and maintaining a healthy work-life balance. She's the first to say that her story is not typical in any way, as she seemed to meet good luck at every turn. After her surgery, Thomas, who also had worked at CNN and NBC, began saving money and planning her business. As if on cue, HLN offered her a buyout to leave the company as part of a downsizing. "It was my light bulb 'a-ha' moment," Thomas said. "I was excited because in the back of my mind, it was what I had been praying for." An opportunity to write a blog for a popular local women's magazine got her some local attention. A journalist friend e-mailed Thomas, saying that he had connected with Johnson and suggesting that they meet. "She called out of the blue," Thomas said. " 'Hi, Jennifer! It's Beverly -- the model!' I was shocked." Johnson needed no introduction. Thomas was very familiar with the first African-American model to win a cover on American Vogue magazine. In that year, 1974, Thomas said Johnson's beauty and status spoke volumes to her as a role model. "When she called, I was like, 'shut up!' We were all like, 'no way!' I didn't think anything would come from it, but eventually, she said she would love to be my client." Thomas made short work of helping Johnson successfully pitch her women's health campaign to CNN, NBC and ABC. "It was huge for me," Thomas said. "It showed me that the skills I may have taken for granted were very valuable to others. Here I was doing what just came natural to me -- working with the media -- and I'm helping an iconic figure. It gave me such a feeling of gratification, and it gave me so much more confidence." But snagging Johnson as her first client wasn't easy. She had to start with smaller steps -- and the first step was a doozy: dealing with the fear. "For me, it was fear of failure," she said. "Anyone who has worked with me knows I am driven to succeed, and failure is not an option." "But I'm a woman of faith," said Thomas, a preacher's daughter with strong ties to her church. "Friends told me that 'faith will give you the wings to fly when you jump off that cliff.' " One way new consultants can boost their confidence is by compiling a list of experience and skills they've gained during the past five years -- including successful projects, implementations and innovations. Experts recommend referring to that list whenever confidence dips. Thomas said
[ "Jennifer Thomas was looking at life with renewed energy: She had just survived a serious operation, and she was at a crossroads in her career. After 20 years as a producer in the stressful business of TV news, the challenge wasn't there for her anymore. For eight weeks, as she recovered from the removal of a large noncancerous tumor from her uterus, Thomas thought about her next steps. \"I told myself I was going to work to do the things that I enjoy, things that are related to the news,\" she said. Thomas had recently conducted news production workshops for kids, so she already knew that she \"loved people and talking to people about the news. That made me start thinking that if I could do it all the time and get paid for it, I'd really enjoy it.\" Within a year, Thomas had left her job at CNN's HLN network to start a Georgia-based media consulting business with clients such as singer/actress Jennifer Holliday, former Bell Biv DeVoe singer Ron DeVoe, actor Boris Kodjoe, actress Nicole Ari Parker and former supermodel Beverly Johnson. During her journey, Thomas learned that working for yourself often requires scary first steps, generous friends and mentors, and maintaining a healthy work-life balance. She's the first to say that her story is not typical in any way, as she seemed to meet good luck at every turn. After her surgery, Thomas, who also had worked at CNN and NBC, began saving money and planning her business. As if on cue, HLN offered her a buyout to leave the company as part of a downsizing. \"It was my light bulb 'a-ha' moment,\" Thomas said. \"I was excited because in the back of my mind, it was what I had been praying for.\" An opportunity to write a blog for a popular local women's magazine got her some local attention. A journalist friend e-mailed Thomas, saying that he had connected with Johnson and suggesting that they meet. \"She called out of the blue,\" Thomas said. \" 'Hi, Jennifer! It's Beverly -- the model!' I was shocked.\" Johnson needed no introduction. Thomas was very familiar with the first African-American model to win a cover on American Vogue magazine. In that year, 1974, Thomas said Johnson's beauty and status spoke volumes to her as a role model. \"When she called, I was like, 'shut up!' We were all like, 'no way!' ", "I didn't think anything would come from it, but eventually, she said she would love to be my client.\" Thomas made short work of helping Johnson successfully pitch her women's health campaign to CNN, NBC and ABC. \"It was huge for me,\" Thomas said. \"It showed me that the skills I may have taken for granted were very valuable to others. Here I was doing what just came natural to me -- working with the media -- and I'm helping an iconic figure. It gave me such a feeling of gratification, and it gave me so much more confidence.\" But snagging Johnson as her first client wasn't easy. She had to start with smaller steps -- and the first step was a doozy: dealing with the fear. \"For me, it was fear of failure,\" she said. \"Anyone who has worked with me knows I am driven to succeed, and failure is not an option.\" \"But I'm a woman of faith,\" said Thomas, a preacher's daughter with strong ties to her church. \"Friends told me that 'faith will give you the wings to fly when you jump off that cliff.' \" One way new consultants can boost their confidence is by compiling a list of experience and skills they've gained during the past five years -- including successful projects, implementations and innovations. Experts recommend referring to that list whenever confidence dips. Thomas said" ]
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What is the estimated capex for 2020
-- Analyst OK. Great. And then my second question, I think the big fund, the National IC Industry Investment Fund is about to kick off its big second phase of capital investment. It -- to the local chip guys in China. Is that supportive of your solid outlook for this year or could there actually be upside to your estimates as that begins to flow in the marketplace? David Wang -- Chief Executive Officer Yes. Actually, as mentioned, I feel [Inaudible] is really boosting for their -- actually, their fiber building and fiber expansion plan. As we mentioned a couple times, China customer and they're really under multi-year expansion plan, either you called it YMTC or Huali Huahong Group and all the SMIC and other -- also other new DRAM customers too. So they have a multiyear expansion plan, and obviously this is the new founding injection into their -- our customer side and what -- that may be improving our visibility and give us more of an opportunity. Beyond that, it's also [Inaudible], I should say, power device fab is also gaining the support in some -- those funds. So we see that expansion of new fab will give us a new opportunity too. Operator Thank you. Next question comes from the Patrick Ho with Stifel. Please go ahead. Patrick Ho -- Stifel Financial Corp. -- Analyst Thank you very much, and congratulations, and glad to hear everyone well. Maybe first off in terms of the supply chain. You mentioned on the prepared remarks that it's fine and everything is going well. Can you discuss any potential disruptions that you did have over the last few months, and whether that's part of the reason why you're pushing out some of the system deliveries into the second and third quarters. And what gives you confidence that it's now resolved where you don't have to use, I guess, second or third source suppliers? David Wang -- Chief Executive Officer OK. Great. Actually, just for the supply chain EBITDA line first, at this moment, I should say probably our major supply and probably 70% come from outside China. In that pouring, I call the import from China in which probably most of them from Japan and some are also from Korea. And we do have about less than probably 10% from U.S. and 10% from Europe. That's our supply chain distribution. In the last two months, three months, we didn't see any supply chain delay, right? Until that time obviously China got to suffer. We do have seen some of our machine shop and gather people not on time return to the job. But at this moment, all our supply in China for machine shop have been on the line already. So as I see that is our major tool pushing from the Q1 to Q2 is obviously you see that is -- in the Wuhan, our customer YMTC, they do have manpower or they subcontract. They cannot go through the Wuhan restrictions, so that's why some tool we suppose ship to the YMTC in the Q1 was pushed to the Q2. That's the major reason, right? So, obviously, we will watch carefully for our supply chain now since the coronavirus has kind of spread out and -- however, we're lucky to see Japan and Korea that is stable and hopefully in a few months, we are going to see U.S. and Europe get stable. So we are, so far, cautious watching. We feel probably OK for a real long -- I call it, for imported components at this moment. Patrick Ho -- Stifel Financial Corp. -- Analyst Great. That's helpful. And maybe a question for you, Mark, in terms of capex for this year, especially as you get the third facility signed on and begin the process there, can give a little bit of color on how much you think potentially you're going to invest in capex for 2020? Mark McKechnie -- Chief Financial Officer Yes. Hey, Patrick, thanks for the question. So the capex for 2020 is just normal run rate operations, $2 million to $5 million is what we're looking at, adding a second floor to production at our second factory and some other upgrades. So that's kind of our normal run rate. We did talk about the land for our new production in R&D site out there in Lingang. So if we reach agreement on that, we could see putting some money down for t
[ " -- Analyst\nOK. Great. And then my second question, I think the big fund, the National IC Industry Investment Fund is about to kick off its big second phase of capital investment. It -- to the local chip guys in China. Is that supportive of your solid outlook for this year or could there actually be upside to your estimates as that begins to flow in the marketplace?\nDavid Wang -- Chief Executive Officer\nYes. Actually, as mentioned, I feel [Inaudible] is really boosting for their -- actually, their fiber building and fiber expansion plan. As we mentioned a couple times, China customer and they're really under multi-year expansion plan, either you called it YMTC or Huali Huahong Group and all the SMIC and other -- also other new DRAM customers too. So they have a multiyear expansion plan, and obviously this is the new founding injection into their -- our customer side and what -- that may be improving our visibility and give us more of an opportunity.\nBeyond that, it's also [Inaudible], I should say, power device fab is also gaining the support in some -- those funds. So we see that expansion of new fab will give us a new opportunity too.\nOperator\nThank you. Next question comes from the Patrick Ho with Stifel. Please go ahead.\nPatrick Ho -- Stifel Financial Corp. -- Analyst\nThank you very much, and congratulations, and glad to hear everyone well. Maybe first off in terms of the supply chain. You mentioned on the prepared remarks that it's fine and everything is going well. Can you discuss any potential disruptions that you did have over the last few months, and whether that's part of the reason why you're pushing out some of the system deliveries into the second and third quarters.\nAnd what gives you confidence that it's now resolved where you don't have to use, I guess, second or third source suppliers?\nDavid Wang -- Chief Executive Officer\nOK. Great. Actually, just for the supply chain EBITDA line first, at this moment, I should say probably our major supply and probably 70% come from outside China. In that pouring, I call the import from China in which probably most of them from Japan and some are also from Korea.\n", "And we do have about less than probably 10% from U.S. and 10% from Europe. That's our supply chain distribution. In the last two months, three months, we didn't see any supply chain delay, right? Until that time obviously China got to suffer.\nWe do have seen some of our machine shop and gather people not on time return to the job. But at this moment, all our supply in China for machine shop have been on the line already. So as I see that is our major tool pushing from the Q1 to Q2 is obviously you see that is -- in the Wuhan, our customer YMTC, they do have manpower or they subcontract. They cannot go through the Wuhan restrictions, so that's why some tool we suppose ship to the YMTC in the Q1 was pushed to the Q2.\nThat's the major reason, right? So, obviously, we will watch carefully for our supply chain now since the coronavirus has kind of spread out and -- however, we're lucky to see Japan and Korea that is stable and hopefully in a few months, we are going to see U.S. and Europe get stable. So we are, so far, cautious watching. We feel probably OK for a real long -- I call it, for imported components at this moment.\nPatrick Ho -- Stifel Financial Corp. -- Analyst\nGreat. That's helpful. And maybe a question for you, Mark, in terms of capex for this year, especially as you get the third facility signed on and begin the process there, can give a little bit of color on how much you think potentially you're going to invest in capex for 2020?\nMark McKechnie -- Chief Financial Officer\nYes. Hey, Patrick, thanks for the question. So the capex for 2020 is just normal run rate operations, $2 million to $5 million is what we're looking at, adding a second floor to production at our second factory and some other upgrades. So that's kind of our normal run rate.\nWe did talk about the land for our new production in R&D site out there in Lingang. So if we reach agreement on that, we could see putting some money down for t" ]
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What is the expected growth rate for BIOSPIN, CALID, and BEST for the full year, taking into account the acquisitions and the impact of the tariff decision announced today
. Obviously that's been traumatic [Sp] throughout this earnings season, so could you just talk a little bit about your expectations for NANO and also for China? And given the tariff decision announced today, has that been any [Inaudible]? Frank Laukien -- President and Chief Executive Officer Yes. So yes, if you take it all in for the full year, NANO is going to grow a little bit more slowly. Organically at least. They had some acquisitions, very good acquisitions. But organically, it's going to grow more slowly than we had anticipated at the beginning of the year. On the other hand, BIOSPIN has stepped up. CALID has continued to do very well. And also notably, BEST has stepped up compared to our expectations at the beginning of the year, which all in, as you've seen, we're comfortable with our annual guidance. So NANO also has some emerging life science drivers. We think it's semiconductor business could conceivably recover in 2020, possibly before an industrial recovery. So there's different drivers under the hood at NANO that -- and oh, most importantly, most of the Bruker NANO spending is also academic government, which you know, even in a downturn, tends to be very resilient and still shows some, at least modest growth. But NANO is there's more economic uncertainty for sure, and a lot of that comes from China or some of the economies that export into China quite a bit. And they are the industrial spending -- industrial spending patterns seem to be not surprisingly to us and compare to also what we've seen from any other companies are becoming -- appear to becoming weaker, and we see some of that as well. There's more uncertainty in China. Even when we get orders, sometimes until we have letters of credit and end user certificate and other paperwork, everything seems to be moving a little bit more slowly, and that's not unexpected from our perspective either. And it probably confirms what you've heard elsewhere, at least from some some that have reported recently. Tycho Peterson -- J.P. Morgan -- Analyst OK, and then a follow up for Gerald, just on free cash flow. It was a pretty significant step down. Obviously you have the inventory build up dynamic that you have [Inaudible] can you just talk a little bit about you know where are we in the inventory build cycle and how should we think about free cash flow potentially recovering, if at all, in the back half of the year? Gerald Herman -- Chief Financial Officer Yes. I'd say, as you already know, I think our free cash flow fluctuates quite considerably quarter to quarter. We have a build up here relative to our Penang facility, as well as our gigahertz NMR activity. We also had a little bit of delayed shipments in the quarter, which drove collections and receivables to a different place. We also have a bit of a pickup, as I think we commented on in the past for the year in CAPEX, so those are all factors. So I do expect this fluctuation to continue from a quarter-to-quarter perspective, but I would also say we do have more activity from a revenue perspective and certainly from a profitability perspective in the latter half of the year. So we're not expecting any major change from our previous view on free cash flow going forward. Frank Laukien -- President and Chief Executive Officer What that means, if I may expand, since we had negative free cash flow in the first half of the year, while we don't guide on this quarterly, we expect to have -- to come back to your specific question, Tycho, I think we're probably at the peak of the inventory buildup or at least very close to it. So we would expect positive free cash flow in the second half of the year. Tycho Peterson -- J.P. Morgan -- Analyst OK, thank you. Operator Our next question comes from Puneet Souda from SVB Leerink. Please go ahead with your question. Puneet Souda -- SVB Leerink -- Analyst Yes, hi, Frank. Thanks. And on the quarter, just help me understand on Project Accelerate if you could. You obviously had a good set of growth here for the last couple of quarters, and now you're above -- the growth is above
[ ". Obviously that's been traumatic [Sp] throughout this earnings season, so could you just talk a little bit about your expectations for NANO and also for China? And given the tariff decision announced today, has that been any [Inaudible]?\nFrank Laukien -- President and Chief Executive Officer\nYes. So yes, if you take it all in for the full year, NANO is going to grow a little bit more slowly. Organically at least. They had some acquisitions, very good acquisitions.\nBut organically, it's going to grow more slowly than we had anticipated at the beginning of the year. On the other hand, BIOSPIN has stepped up. CALID has continued to do very well. And also notably, BEST has stepped up compared to our expectations at the beginning of the year, which all in, as you've seen, we're comfortable with our annual guidance.\nSo NANO also has some emerging life science drivers. We think it's semiconductor business could conceivably recover in 2020, possibly before an industrial recovery. So there's different drivers under the hood at NANO that -- and oh, most importantly, most of the Bruker NANO spending is also academic government, which you know, even in a downturn, tends to be very resilient and still shows some, at least modest growth. But NANO is there's more economic uncertainty for sure, and a lot of that comes from China or some of the economies that export into China quite a bit.\nAnd they are the industrial spending -- industrial spending patterns seem to be not surprisingly to us and compare to also what we've seen from any other companies are becoming -- appear to becoming weaker, and we see some of that as well. There's more uncertainty in China. Even when we get orders, sometimes until we have letters of credit and end user certificate and other paperwork, everything seems to be moving a little bit more slowly, and that's not unexpected from our perspective either. And it probably confirms what you've heard elsewhere, at least from some some that have reported recently.\nTycho Peterson -- J.P. Morgan -- Analyst\nOK, and then a follow up for Gerald, just on free cash flow. It was a pretty significant step down. Obviously you have the inventory build up dynamic that you have [Inaudible] can you just talk a little bit about you know where are we in the inventory build cycle and how should we think about free cash flow potentially recovering, if at all, in the back half of the year?\n", "Gerald Herman -- Chief Financial Officer\nYes. I'd say, as you already know, I think our free cash flow fluctuates quite considerably quarter to quarter. We have a build up here relative to our Penang facility, as well as our gigahertz NMR activity. We also had a little bit of delayed shipments in the quarter, which drove collections and receivables to a different place.\nWe also have a bit of a pickup, as I think we commented on in the past for the year in CAPEX, so those are all factors. So I do expect this fluctuation to continue from a quarter-to-quarter perspective, but I would also say we do have more activity from a revenue perspective and certainly from a profitability perspective in the latter half of the year. So we're not expecting any major change from our previous view on free cash flow going forward.\nFrank Laukien -- President and Chief Executive Officer\nWhat that means, if I may expand, since we had negative free cash flow in the first half of the year, while we don't guide on this quarterly, we expect to have -- to come back to your specific question, Tycho, I think we're probably at the peak of the inventory buildup or at least very close to it. So we would expect positive free cash flow in the second half of the year.\nTycho Peterson -- J.P. Morgan -- Analyst\nOK, thank you.\nOperator\nOur next question comes from Puneet Souda from SVB Leerink. Please go ahead with your question.\nPuneet Souda -- SVB Leerink -- Analyst\nYes, hi, Frank. Thanks. And on the quarter, just help me understand on Project Accelerate if you could. You obviously had a good set of growth here for the last couple of quarters, and now you're above -- the growth is above" ]
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What is the expected impact of ZR on the DCI segment's pricing and market share
he network, where you're obviously talking about investments. But as some of the discussions around 5G picks up, and Nokia being the large incumbent there, how should we be thinking about the opportunity for share gains over the next few years in that part of the network? And I have a follow-up. Gary B. Smith -- President and Chief Executive Officer Scott, you want to take it? Scott McFeely -- Senior Vice President, Global Products and Services, Ciena Yes. So first of all, our Edge and Access piece, our next generation metro included in that, 5G is one driver there, also the evolution of an enterprise business services in general is another driver. I think we've talked in the past around our existing businesses, very strong in those areas, wireless backhaul and enterprise services in North America and India, I'll just say under distributed in the rest of the world, partially because historically it was not playing in the IP space. The investments that we're making there is really around our next generation IP capability with a ground-up IP OS integrated with our optics, integrated with our multilayer domain controllers, and then a series of products optimized for things like 5G, fiber deep and the next generation sort of aggregation networks for converged traffic. All of those things we think is an opportunity that will show up in our Metro and our Packet business, and we expect that to grow faster than our aggregate part of the business going forward. Now, 5G specifically, I think what's going on right now is sort of augmentation on their existing architectures, that will benefit us where we have wireless backhaul instalments today, but our real opportunity longer term is as they start to look at stand-alone architectures and make architectural decisions, that will allow us to expand our addressable market beyond our historical installed base of wireless backhaul. Samik Chatterjee -- JP Morgan -- Analyst Got it. And if I can follow-up with a question for Jim, just if you can give us some color on, you talked about the investments that are kind of probably going to be elevated for a bit here. But how long is that going to run for? Primarily, because if I think about what you said for your three-year outlook and you ended the year with 17.6% margin, which is higher than your long-term range. If I think about gross margins moderating a bit, but you also guided to having opex leverage for the three-year. Do we end up kind of three years out about the long-term range that you provided of 16% to 17%? James E. Moylan, Jr. -- Senior Vice President, Finance & Chief Financial Officer Without giving a specific number, I would say that we would expect operating margin to increase from what we're going to deliver in 2021, if we hit our plan. So yes, we said that we are going to grow opex more slowly than revenue would grow in the two years beyond 2021. We did indicate that our gross margins, we think our base rate of gross margins have improved a little bit. So yes, we do expect our operating margin over the next couple of years to increase than what we're going to post in 2021. Gregg Lampf -- Vice President, Investor Relations Thanks, Samik. Samik Chatterjee -- JP Morgan -- Analyst Thank you. Operator Your next question comes from Ryan Koontz of Rosenblatt Securities. Your line is open. Ryan Koontz -- Rosenblatt Securities -- Analyst Hi. Thanks for the question. As you look ahead to the impact from ZR on the DCI segment, assuming you're able to retain share with your incumbent customers there, how should we think about the deflationary price per wavelength there? Seems like pretty disruptive impact to pricing and when we think about that deflating the market there a little bit? Thank you. Gary B. Smith -- President and Chief Executive Officer Yes, Ryan, here's how I think about it, if you drive sort of the typical price erosion curve over the last decade in the optical space and you think about the timing of ZR and some of the price point that we sort of see in the marketplace, you can extrapolate that curve. It's the natural price
[ "he network, where you're obviously talking about investments. But as some of the discussions around 5G picks up, and Nokia being the large incumbent there, how should we be thinking about the opportunity for share gains over the next few years in that part of the network? And I have a follow-up.\nGary B. Smith -- President and Chief Executive Officer\nScott, you want to take it?\nScott McFeely -- Senior Vice President, Global Products and Services, Ciena\nYes. So first of all, our Edge and Access piece, our next generation metro included in that, 5G is one driver there, also the evolution of an enterprise business services in general is another driver. I think we've talked in the past around our existing businesses, very strong in those areas, wireless backhaul and enterprise services in North America and India, I'll just say under distributed in the rest of the world, partially because historically it was not playing in the IP space. The investments that we're making there is really around our next generation IP capability with a ground-up IP OS integrated with our optics, integrated with our multilayer domain controllers, and then a series of products optimized for things like 5G, fiber deep and the next generation sort of aggregation networks for converged traffic.\nAll of those things we think is an opportunity that will show up in our Metro and our Packet business, and we expect that to grow faster than our aggregate part of the business going forward.\nNow, 5G specifically, I think what's going on right now is sort of augmentation on their existing architectures, that will benefit us where we have wireless backhaul instalments today, but our real opportunity longer term is as they start to look at stand-alone architectures and make architectural decisions, that will allow us to expand our addressable market beyond our historical installed base of wireless backhaul.\nSamik Chatterjee -- JP Morgan -- Analyst\n", "Got it. And if I can follow-up with a question for Jim, just if you can give us some color on, you talked about the investments that are kind of probably going to be elevated for a bit here. But how long is that going to run for? Primarily, because if I think about what you said for your three-year outlook and you ended the year with 17.6% margin, which is higher than your long-term range. If I think about gross margins moderating a bit, but you also guided to having opex leverage for the three-year. Do we end up kind of three years out about the long-term range that you provided of 16% to 17%?\nJames E. Moylan, Jr. -- Senior Vice President, Finance & Chief Financial Officer\nWithout giving a specific number, I would say that we would expect operating margin to increase from what we're going to deliver in 2021, if we hit our plan. So yes, we said that we are going to grow opex more slowly than revenue would grow in the two years beyond 2021. We did indicate that our gross margins, we think our base rate of gross margins have improved a little bit. So yes, we do expect our operating margin over the next couple of years to increase than what we're going to post in 2021.\nGregg Lampf -- Vice President, Investor Relations\nThanks, Samik.\nSamik Chatterjee -- JP Morgan -- Analyst\nThank you.\nOperator\nYour next question comes from Ryan Koontz of Rosenblatt Securities. Your line is open.\nRyan Koontz -- Rosenblatt Securities -- Analyst\nHi. Thanks for the question. As you look ahead to the impact from ZR on the DCI segment, assuming you're able to retain share with your incumbent customers there, how should we think about the deflationary price per wavelength there? Seems like pretty disruptive impact to pricing and when we think about that deflating the market there a little bit? Thank you.\nGary B. Smith -- President and Chief Executive Officer\nYes, Ryan, here's how I think about it, if you drive sort of the typical price erosion curve over the last decade in the optical space and you think about the timing of ZR and some of the price point that we sort of see in the marketplace, you can extrapolate that curve. It's the natural price" ]
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Using examples taken from the paragraph, provide the major risks to humans with climate change in a short bulleted list
The effects of climate change are impacting humans everywhere in the world. Impacts can now be observed on all continents and ocean regions, with low-latitude, less developed areas facing the greatest risk. Continued warming has potentially “severe, pervasive and irreversible impacts” for people and ecosystems. The risks are unevenly distributed, but are generally greater for disadvantaged people in developing and developed countries. The WHO has classified climate change as the greatest threat to global health in the 21st century. Extreme weather leads to injury and loss of life, and crop failures to undernutrition. Various infectious diseases are more easily transmitted in a warmer climate, such as dengue fever and malaria. Young children are the most vulnerable to food shortages. Both children and older people are vulnerable to extreme heat. The World Health Organization (WHO) has estimated that between 2030 and 2050, climate change would cause around 250,000 additional deaths per year. They assessed deaths from heat exposure in elderly people, increases in diarrhea, malaria, dengue, coastal flooding, and childhood undernutrition. Over 500,000 more adult deaths are projected yearly by 2050 due to reductions in food availability and quality. By 2100, 50% to 75% of the global population may face climate conditions that are life-threatening due to combined effects of extreme heat and humidity. Climate change is affecting food security. It has caused reduction in global yields of maize, wheat, and soybeans between 1981 and 2010. Future warming could further reduce global yields of major crops. Crop production will probably be negatively affected in low-latitude countries, while effects at northern latitudes may be positive or negative. Up to an additional 183 million people worldwide, particularly those with lower incomes, are at risk of hunger as a consequence of these impacts. Climate change also impacts fish populations. Globally, less will be available to be fished. Regions dependent on glacier water, regions that are already dry, and small islands have a higher risk of water stress due to climate change. Economic damages due to climate change may be severe and there is a chance of disastrous consequences. Climate change has likely already increased global economic inequality, and this trend is projected to continue. Most of the severe impacts are expected in sub-Saharan Africa, where most of the local inhabitants are dependent upon natural and agricultural resources and South-East Asia. The World Bank estimates that climate change could drive over 120 million people into poverty by 2030. Current inequalities based on wealth and social status have worsened due to climate change. Major difficulties in mitigating, adapting, and recovering to climate shocks are faced by marginalized people who have less control over resources. Indigenous people, who are subsistent on their land and ecosystems, will face endangerment to their wellness and lifestyles due to climate change. An expert elicitation concluded that the role of climate change in armed conflict has been small compared to factors such as socio-economic inequality and state capabilities. Low-lying islands and coastal communities are threatened by sea level rise, which makes flooding more common. Sometimes, land is permanently lost to the sea. This could lead to statelessness for people in island nations, such as the Maldives and Tuvalu. In some regions, the rise in temperature and humidity may be too severe for humans to adapt to. With worst-case climate change, models project that almost one-third of humanity might live in extremely hot and uninhabitable climates, similar to the current climate found in the Sahara. These factors can drive environmental migration, both within and between countries. More people are expected to be displaced because of sea level rise, extreme weather and conflict from increased competition over natural resources. Climate change may also increase vulnerability, leading to "trapped populations" who are not able to move due to a lack of resources.
[ "The effects of climate change are impacting humans everywhere in the world. Impacts can now be observed on all continents and ocean regions, with low-latitude, less developed areas facing the greatest risk. Continued warming has potentially “severe, pervasive and irreversible impacts” for people and ecosystems. The risks are unevenly distributed, but are generally greater for disadvantaged people in developing and developed countries.\n\nThe WHO has classified climate change as the greatest threat to global health in the 21st century. Extreme weather leads to injury and loss of life, and crop failures to undernutrition. Various infectious diseases are more easily transmitted in a warmer climate, such as dengue fever and malaria. Young children are the most vulnerable to food shortages. Both children and older people are vulnerable to extreme heat. The World Health Organization (WHO) has estimated that between 2030 and 2050, climate change would cause around 250,000 additional deaths per year. They assessed deaths from heat exposure in elderly people, increases in diarrhea, malaria, dengue, coastal flooding, and childhood undernutrition. Over 500,000 more adult deaths are projected yearly by 2050 due to reductions in food availability and quality. By 2100, 50% to 75% of the global population may face climate conditions that are life-threatening due to combined effects of extreme heat and humidity.\n\nClimate change is affecting food security. It has caused reduction in global yields of maize, wheat, and soybeans between 1981 and 2010. Future warming could further reduce global yields of major crops. Crop production will probably be negatively affected in low-latitude countries, while effects at northern latitudes may be positive or negative. Up to an additional 183 million people worldwide, particularly those with lower incomes, are at risk of hunger as a consequence of these impacts. Climate change also impacts fish populations. Globally, less will be available to be fished. Regions dependent on glacier water, regions that are already dry, and small islands have a higher risk of water stress due to climate change.\n\nEconomic damages due to climate change may be severe and there is a chance of disastrous consequences. Climate change has likely already increased global economic inequality, and this trend is projected to continue. Most of the severe impacts are expected in sub-Saharan Africa, where most of the local inhabitants are dependent upon natural and agricultural resources and South-East Asia. The World Bank estimates that climate change could drive over 120 million people into poverty by 2030.\n\n", "Current inequalities based on wealth and social status have worsened due to climate change. Major difficulties in mitigating, adapting, and recovering to climate shocks are faced by marginalized people who have less control over resources. Indigenous people, who are subsistent on their land and ecosystems, will face endangerment to their wellness and lifestyles due to climate change. An expert elicitation concluded that the role of climate change in armed conflict has been small compared to factors such as socio-economic inequality and state capabilities.\n\nLow-lying islands and coastal communities are threatened by sea level rise, which makes flooding more common. Sometimes, land is permanently lost to the sea. This could lead to statelessness for people in island nations, such as the Maldives and Tuvalu. In some regions, the rise in temperature and humidity may be too severe for humans to adapt to. With worst-case climate change, models project that almost one-third of humanity might live in extremely hot and uninhabitable climates, similar to the current climate found in the Sahara. These factors can drive environmental migration, both within and between countries. More people are expected to be displaced because of sea level rise, extreme weather and conflict from increased competition over natural resources. Climate change may also increase vulnerability, leading to \"trapped populations\" who are not able to move due to a lack of resources." ]
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What is the expected long-term driver of significant value for the distributed compute solution in the United States
t on more of our sites, as carriers deploy massive MIMO, and utilize DSS, or and then, any other tools they have at their disposal to optimize their network performance and efficiency. In addition, as 5G and the surrounding ecosystem develops in the US, and is network technology continues to advance throughout our international footprint. We expect to have compelling opportunities to extend our core value proposition, into new related creative product and service offerings to expand our total addressable market. One of the key trends driving these opportunities is the continued convergence of wireless and wireline networks. We believe that this convergence along with increasing digitalization, network virtualization, and the agility of cloud-native software-defined services will lead to increasing demand for distributed, interconnected global edge compute processing. As a result, the first mile of cloud on-ramps at this edge should become a more critical component of our customer's network architecture, and notably, this age is exactly where our exclusive communications, real estate assets are located. To capitalize on the opportunities this network evolution is likely to present, we are focused on developing communications infrastructure business models that augment the value of our existing assets, expand our revenue base beyond traditional tenants, and enhance our leadership role in the wireless ecosystem. At the highest level, our goal is to selectively extend our digital infrastructure core capabilities to further encapsulate neutral hosted wireless connectivity, transport, and compute functions as part of our comprehensive ATC platform. We can then offer tenants an integrated suite of complementary solutions to fit well within their ever more complex network designs. Within this framework, we intend to remain disciplined in terms of how we deploy capital and believe ventures with select partners could be the most efficient way to develop this platform extension. We expect our investments to focus on business models with several key elements: first, contracted long term revenue commitments from Tier 1 customers.; Second, increasing ROIC with multi-tenancy, and multi-service offerings requiring modest ongoing maintenance capex; third, operating leverage characteristics similar to towers, we focus on our fixed costs; and for synergies and adjacencies with existing ATC assets and skillsets. So that General backdrop in mind, let me dive deeper into a few specific areas where we are currently focusing our efforts with one example in the United States, and one offshore. In the United States, as 5G deployments accelerate, we expect the proliferation of lower latency applications, and incremental cloud-based customer demand for application level and network compute functions at the edge. There are two distinct solutions within this emerging ecosystem that we are paying attention to. Distributed compute, and mobile edge compute. We believe that these two offerings will develop at different timelines and will allow us to provide differentiated valued propositions for our customers. On a distributed computing side, enterprise workloads continue to move to the public cloud. And a growing near-term market segment is the use of on or off-prem private cloud computing is a hybrid solution. Small and medium-sized businesses are often willing to move legacy workloads to more responsive, proximate, cost-effective data centers, and we believe that many data centers at some of our macro towers can represent optimal locations for these installations. We have started to deploy micro data center facilities at select tower sites, and have seen early indications of solid demand in collaboration with partners like Flexential. In the near-term, this solution enables us to develop operational excellence around the technology and iron out the kinks on a small scale. With that said, we don't necessarily think this use case alone will be the long-term driver of significant value for us. We expect true 5G mobile edge compute solutions to represent
[ "t on more of our sites, as carriers deploy massive MIMO, and utilize DSS, or and then, any other tools they have at their disposal to optimize their network performance and efficiency.\nIn addition, as 5G and the surrounding ecosystem develops in the US, and is network technology continues to advance throughout our international footprint. We expect to have compelling opportunities to extend our core value proposition, into new related creative product and service offerings to expand our total addressable market. One of the key trends driving these opportunities is the continued convergence of wireless and wireline networks. We believe that this convergence along with increasing digitalization, network virtualization, and the agility of cloud-native software-defined services will lead to increasing demand for distributed, interconnected global edge compute processing.\nAs a result, the first mile of cloud on-ramps at this edge should become a more critical component of our customer's network architecture, and notably, this age is exactly where our exclusive communications, real estate assets are located. To capitalize on the opportunities this network evolution is likely to present, we are focused on developing communications infrastructure business models that augment the value of our existing assets, expand our revenue base beyond traditional tenants, and enhance our leadership role in the wireless ecosystem. At the highest level, our goal is to selectively extend our digital infrastructure core capabilities to further encapsulate neutral hosted wireless connectivity, transport, and compute functions as part of our comprehensive ATC platform. We can then offer tenants an integrated suite of complementary solutions to fit well within their ever more complex network designs.\nWithin this framework, we intend to remain disciplined in terms of how we deploy capital and believe ventures with select partners could be the most efficient way to develop this platform extension. We expect our investments to focus on business models with several key elements: first, contracted long term revenue commitments from Tier 1 customers.; Second, increasing ROIC with multi-tenancy, and multi-service offerings requiring modest ongoing maintenance capex; third, operating leverage characteristics similar to towers, we focus on our fixed costs; and for synergies and adjacencies with existing ATC assets and skillsets. So that General backdrop in mind, let me dive deeper into a few specific areas where we are currently focusing our efforts with one example in the United States, and one offshore. In the United States, as 5G deployments accelerate, we expect the proliferation of lower latency applications, and incremental cloud-based customer demand for application level and network compute functions at the edge.\n", "There are two distinct solutions within this emerging ecosystem that we are paying attention to. Distributed compute, and mobile edge compute. We believe that these two offerings will develop at different timelines and will allow us to provide differentiated valued propositions for our customers. On a distributed computing side, enterprise workloads continue to move to the public cloud.\nAnd a growing near-term market segment is the use of on or off-prem private cloud computing is a hybrid solution. Small and medium-sized businesses are often willing to move legacy workloads to more responsive, proximate, cost-effective data centers, and we believe that many data centers at some of our macro towers can represent optimal locations for these installations. We have started to deploy micro data center facilities at select tower sites, and have seen early indications of solid demand in collaboration with partners like Flexential. In the near-term, this solution enables us to develop operational excellence around the technology and iron out the kinks on a small scale.\nWith that said, we don't necessarily think this use case alone will be the long-term driver of significant value for us. We expect true 5G mobile edge compute solutions to represent " ]
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What was the growth rate for the consumer side in 2019
n a little bit 5G performance is actually going to be, especially on the mobile side, going to start ramping and we believe that will be definitely boost up some of the areas -- in this area. On top of that, there is also the routers and switch related to the 5G. So we think this is going to be a bright spot for us. For the computing as well, right, if you really think about and we talk about the data rate, we talk about the speed. So we believe the computing, especially high-end server and router and storage will continue to drive some of the upside momentum and opportunity for us, right? I think for consumer side, right, the IoTs, even related to 5G, that's actually going to drive some of the new demand in this area. So we pretty confident we continue to focus on the areas we've been talking about, right, 5Gs within communication, high-end server, storage within the computing area and IoT on the consumer side on top of the industrial automotive that we showed significant performance in both of those areas already, right. So that's -- we will continue to focus and that's not going to change in 2020. Tianyan Goellner -- Sidoti -- Analyst Okay. But in 2019, I think all those three end markets were down like single digits or low-single digits. So should we expect the trend would be very similar in 2020? Emily Yang -- Vice President, Worldwide Sales and Marketing When you say single-digit, you mean the growth in single-digit? Tianyan Goellner -- Sidoti -- Analyst Yeah, correct. Yeah, correct. Emily Yang -- Vice President, Worldwide Sales and Marketing Right. But if you can see the overall market in Brett's comment, the overall market with our participated area 6.6% drop, right. So even with the single-digit growth, from Diodes, that still outperform compared to all our other peers in the industry, right. Keh-Shew Lu -- Director, President and Chief Executive Officer If you look at minus 6.6%, plus 2.9%, then actually it's almost 10%. Emily Yang -- Vice President, Worldwide Sales and Marketing Right. Right. Keh-Shew Lu -- Director, President and Chief Executive Officer Okay, so. Emily Yang -- Vice President, Worldwide Sales and Marketing And then also, for example, in the computing area we are all aware off the Intel chipset shortage and stuff like that. We believe in 2020, the situation will improve based on Intel's announcement. So that's the other area that -- it's also driven by the market and also driven by the other vendors that are driving the market, as well. Tianyan Goellner -- Sidoti -- Analyst Okay. That's very good. So my last question, if I may, would be for Brett, on the capex. You just mentioned that in the prepared remarks, that 5% to 9% of revenue would be the good assumption. So I'm wondering, considering in the third quarter and fourth quarter, that capital intensity was at like 7.9%. Should we assume at higher end of 5% to 9% or just the midpoint? Keh-Shew Lu -- Director, President and Chief Executive Officer Well, let me answer this because I will not allow, OK, the capex above our model, because our model is 5% to 9%. So I will not allow it. But only one case, if we alter the space in Chengdu then we will build at Chengdu another big building, another facility and the equipment and all. So when we -- out of the capacity of space for Chengdu, we do need to build the building, then that will be boost up our capex a little bit more. But fortunately, they are not depreciated in five years. They are depreciated in 15 -- it's 15 years. So it's not a big depreciation. Okay. So we will still try to keep it -- we will still keep it at 5% to 9% model. Tianyan Goellner -- Sidoti -- Analyst Okay. Thank you. So that's all from -- for me. Operator Thank you. At this time, I'm showing no further questions. I would like to turn the call back over to Dr. Lu for closing remarks. Keh-Shew Lu -- Director, President and Chief Executive Officer Okay. Thank you for your participation on today's call. Operator, you may now disconnect. Operator [Operator Closing Remarks] Duration: 50 minutes Call participants: Leanne Sievers --
[ "n a little bit 5G performance is actually going to be, especially on the mobile side, going to start ramping and we believe that will be definitely boost up some of the areas -- in this area. On top of that, there is also the routers and switch related to the 5G. So we think this is going to be a bright spot for us.\nFor the computing as well, right, if you really think about and we talk about the data rate, we talk about the speed. So we believe the computing, especially high-end server and router and storage will continue to drive some of the upside momentum and opportunity for us, right?\nI think for consumer side, right, the IoTs, even related to 5G, that's actually going to drive some of the new demand in this area. So we pretty confident we continue to focus on the areas we've been talking about, right, 5Gs within communication, high-end server, storage within the computing area and IoT on the consumer side on top of the industrial automotive that we showed significant performance in both of those areas already, right. So that's -- we will continue to focus and that's not going to change in 2020.\nTianyan Goellner -- Sidoti -- Analyst\nOkay. But in 2019, I think all those three end markets were down like single digits or low-single digits. So should we expect the trend would be very similar in 2020?\nEmily Yang -- Vice President, Worldwide Sales and Marketing\nWhen you say single-digit, you mean the growth in single-digit?\nTianyan Goellner -- Sidoti -- Analyst\nYeah, correct. Yeah, correct.\nEmily Yang -- Vice President, Worldwide Sales and Marketing\nRight. But if you can see the overall market in Brett's comment, the overall market with our participated area 6.6% drop, right. So even with the single-digit growth, from Diodes, that still outperform compared to all our other peers in the industry, right.\nKeh-Shew Lu -- Director, President and Chief Executive Officer\nIf you look at minus 6.6%, plus 2.9%, then actually it's almost 10%.\nEmily Yang -- Vice President, Worldwide Sales and Marketing\nRight. Right.\nKeh-Shew Lu -- Director, President and Chief Executive Officer\nOkay, so.\nEmily Yang -- Vice President, Worldwide Sales and Marketing\n", "And then also, for example, in the computing area we are all aware off the Intel chipset shortage and stuff like that. We believe in 2020, the situation will improve based on Intel's announcement. So that's the other area that -- it's also driven by the market and also driven by the other vendors that are driving the market, as well.\nTianyan Goellner -- Sidoti -- Analyst\nOkay. That's very good. So my last question, if I may, would be for Brett, on the capex. You just mentioned that in the prepared remarks, that 5% to 9% of revenue would be the good assumption. So I'm wondering, considering in the third quarter and fourth quarter, that capital intensity was at like 7.9%. Should we assume at higher end of 5% to 9% or just the midpoint?\nKeh-Shew Lu -- Director, President and Chief Executive Officer\nWell, let me answer this because I will not allow, OK, the capex above our model, because our model is 5% to 9%. So I will not allow it. But only one case, if we alter the space in Chengdu then we will build at Chengdu another big building, another facility and the equipment and all. So when we -- out of the capacity of space for Chengdu, we do need to build the building, then that will be boost up our capex a little bit more. But fortunately, they are not depreciated in five years. They are depreciated in 15 -- it's 15 years. So it's not a big depreciation. Okay. So we will still try to keep it -- we will still keep it at 5% to 9% model.\nTianyan Goellner -- Sidoti -- Analyst\nOkay. Thank you. So that's all from -- for me.\nOperator\nThank you. At this time, I'm showing no further questions. I would like to turn the call back over to Dr. Lu for closing remarks.\nKeh-Shew Lu -- Director, President and Chief Executive Officer\nOkay. Thank you for your participation on today's call. Operator, you may now disconnect.\nOperator\n[Operator Closing Remarks]\nDuration: 50 minutes\nCall participants:\nLeanne Sievers --" ]
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What is the percentage of OnZoom's beta stage customers who are enterprise customers
ou. Operator Next question is from Sterling Auty with J.P. Morgan. Sterling Auty -- J.P. Morgan -- Analyst Yeah. Thanks. Hi, guys. So were you successful in rolling out all of the countries that you wanted to for Zoom Phone during calendar 2020? What's the plan for 2021? And can you eliminate the need for the bring-your-own-carrier program that you launched with? Eric Yuan -- Founder and Chief Executive Officer Yeah. So first of all, if you look at our international penetration, it consists of 42 countries if you look at our Zoom Phone and the service. I think look at our phone -- the growth, 40% are from the up-market. 60% are from SMB market. If you talk about up-market, I think more and more opportunities will come from international customers. The reason why, when we started, right, we lead the folks on North American market since last calendar year. As we started rolling out to more and more international customers, I think the international penetration, I think will be the catalyst for our future Zoom Phone growth. Sterling Auty -- J.P. Morgan -- Analyst Got it. Thank you. Operator Our next question is from Meta Marshall with Morgan Stanley. Meta Marshall -- Morgan Stanley -- Analyst Great. Thanks. As you think about leveraging your platform, digital events is something you talked about at Zoomtopia with OnZoom as another kind of natural adjacency. Any traction here to call out on OnZoom? Or just how do you think about kind of finding other use cases or platforms for video usage? Eric Yuan -- Founder and Chief Executive Officer Yeah. Kelly, feel free to chime in. Actually, in terms of OnZoom, we launched OnZoom on-prem last October at our Zoom annual user conference. But now, it's in the beta stage now, right? And based on our talk with those early adopters and also based on the progress, we think OnZoom is not only designed for the normal workers for [Inaudible] consumer, right, to learn yoga class. And also another part of OnZoom is about the overall business customer -- enterprise customer online virtual event. Like this year at Zoomtopia, we hold that event completely on Zoom platform. Essentially, OnZoom two parts: consumer-driven OnZoom to allow the knowledge workers to make a living, to sell a yoga class, teaching anything online over Zoom platform; and also, we are beginning to expand our webinar platform to be an end-to-end corporate virtual event platform. That market also has huge growth opportunity. Meta Marshall -- Morgan Stanley -- Analyst Great. Thanks, guys. Eric Yuan -- Founder and Chief Executive Officer Thank you. Operator Our next question is from Philip Winslow with Wells Fargo. Philip Winslow -- Wells Fargo Securities -- Analyst Hey, guys. Thanks for taking my question. I also just wanted to dig in on Zoom Phone. One of the things that jumped out at me was the 18 customers with more than 10,000 seats. I was wondering, is there any sort of, I guess, cohort so to speak, what you're seeing here? Are these larger customers from a particular industry? Is their workforce more distributed than others? I mean, anything that you comment on and sort of how -- sort of what the type of customer profile is for Zoom Phone, especially with those bigger transactions and how you think about that going forward. Kelly Steckelberg -- Chief Financial Officer I think the great news, Phil, is that it's actually spread across all industries. You saw those names that we talked about, right? We had a university, we had an entertainment organization and a technology company. And I think the success of Zoom Phone from the very beginning is it's really appealed well to small and large enterprises alike and across all industries. And the reason that we win, right, is based on, as Eric mentioned, the trust that they already have in us, as well as the usability and the total cost of ownership, which plays well across all industries. Eric Yuan -- Founder and Chief Executive Officer Yes. Philip Winslow -- Wells Fargo Securities -- Analyst Got it. And then just a follow-up on that, theoretically, as companies are ramping up to
[ "ou.\nOperator\nNext question is from Sterling Auty with J.P. Morgan.\nSterling Auty -- J.P. Morgan -- Analyst\nYeah. Thanks. Hi, guys. So were you successful in rolling out all of the countries that you wanted to for Zoom Phone during calendar 2020? What's the plan for 2021? And can you eliminate the need for the bring-your-own-carrier program that you launched with?\nEric Yuan -- Founder and Chief Executive Officer\nYeah. So first of all, if you look at our international penetration, it consists of 42 countries if you look at our Zoom Phone and the service. I think look at our phone -- the growth, 40% are from the up-market. 60% are from SMB market.\nIf you talk about up-market, I think more and more opportunities will come from international customers. The reason why, when we started, right, we lead the folks on North American market since last calendar year. As we started rolling out to more and more international customers, I think the international penetration, I think will be the catalyst for our future Zoom Phone growth.\nSterling Auty -- J.P. Morgan -- Analyst\nGot it. Thank you.\nOperator\nOur next question is from Meta Marshall with Morgan Stanley.\nMeta Marshall -- Morgan Stanley -- Analyst\nGreat. Thanks. As you think about leveraging your platform, digital events is something you talked about at Zoomtopia with OnZoom as another kind of natural adjacency. Any traction here to call out on OnZoom? Or just how do you think about kind of finding other use cases or platforms for video usage?\nEric Yuan -- Founder and Chief Executive Officer\nYeah. Kelly, feel free to chime in. Actually, in terms of OnZoom, we launched OnZoom on-prem last October at our Zoom annual user conference. But now, it's in the beta stage now, right? And based on our talk with those early adopters and also based on the progress, we think OnZoom is not only designed for the normal workers for [Inaudible] consumer, right, to learn yoga class.\n", "And also another part of OnZoom is about the overall business customer -- enterprise customer online virtual event. Like this year at Zoomtopia, we hold that event completely on Zoom platform. Essentially, OnZoom two parts: consumer-driven OnZoom to allow the knowledge workers to make a living, to sell a yoga class, teaching anything online over Zoom platform; and also, we are beginning to expand our webinar platform to be an end-to-end corporate virtual event platform. That market also has huge growth opportunity.\nMeta Marshall -- Morgan Stanley -- Analyst\nGreat. Thanks, guys.\nEric Yuan -- Founder and Chief Executive Officer\nThank you.\nOperator\nOur next question is from Philip Winslow with Wells Fargo.\nPhilip Winslow -- Wells Fargo Securities -- Analyst\nHey, guys. Thanks for taking my question. I also just wanted to dig in on Zoom Phone. One of the things that jumped out at me was the 18 customers with more than 10,000 seats.\nI was wondering, is there any sort of, I guess, cohort so to speak, what you're seeing here? Are these larger customers from a particular industry? Is their workforce more distributed than others? I mean, anything that you comment on and sort of how -- sort of what the type of customer profile is for Zoom Phone, especially with those bigger transactions and how you think about that going forward.\nKelly Steckelberg -- Chief Financial Officer\nI think the great news, Phil, is that it's actually spread across all industries. You saw those names that we talked about, right? We had a university, we had an entertainment organization and a technology company. And I think the success of Zoom Phone from the very beginning is it's really appealed well to small and large enterprises alike and across all industries. And the reason that we win, right, is based on, as Eric mentioned, the trust that they already have in us, as well as the usability and the total cost of ownership, which plays well across all industries.\nEric Yuan -- Founder and Chief Executive Officer\nYes.\nPhilip Winslow -- Wells Fargo Securities -- Analyst\nGot it. And then just a follow-up on that, theoretically, as companies are ramping up to " ]
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What was the percentage increase in revenue for Qorvo's mobile products segment in the 2020-Q2 quarter compared to the previous quarter
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. Qorvo 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. Qorvo'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. Turning 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. primes, 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. 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. During 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. We 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
[ "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" ]
2
[ 0, 0 ]
0
What was the revenue generated by AXT in Q4 of 2020 from gallium arsenide
ates for us, too. We hope to file the application with the China Securities Regulatory Commission by the end of June. There's a lot to accomplish to achieve that goal, and it will be a busy four months for us. OK. This concludes the financial review. I'll now turn the call over to Dr. Morris Young for a review of our business. Morris? Morris Young -- Founder and Chief Executive Office Thank you, Gary, and good afternoon, everybody. 2020 was a year of solid achievement for AXT, capped off by the growth in Q4, which is typically a seasonally down quarter. We completed the relocation of our gallium arsenide manufacturing, elevated our business and manufacturing processes to meet tier one standards, and expanded capacity in response to increasing demand. Now, with the gathering momentum of 5G and its related technologies, new applications emerging in healthcare and consumer devices, and the technology progression and data center connectivity, we believe AXT is in a strong, competitive position to lead our industry and enable many of the defining trends of the coming decades. And we are ready. In fact, we don't often make fiscal-year projections, but I will give you a few today. First, in 2021, we expect to bring eight-inch gallium arsenide and six-inch indium phosphide to market. We expect to exceed that elusive $30 million revenue quarter-per-quarter mark. We expect to ramp up production with multiple tier one companies. And finally, we're excited to successfully move AXT toward a 2022 listing on the STAR Market in China. We believe this year will be transformative for AXT, and in turn, for our employees, our customers, and our shareholders. While we said it before, I am truly excited to report to you on our progress. So let's now get started with indium phosphide. Q4 of 2020 was a strong -- second strongest revenue quarter for our indium phosphide portfolio in the history of AXT. Our results were exceeded only by Q2 2019 when we received a very large order from a single customer, who we believe is building an inventory for expected future demand. In Q4 of 2020, however, our revenue achievement was spread across many customers and money applications. We believe the current revenue diversity demonstrates the broad and sustainable nature of our growth opportunities in indium phosphide. It was in April of 2019 that we first mentioned 5G revenue on our earnings report. Let's say, a year later, 5G and its closely related power applications are driving significant growth in our indium phosphide revenue. Demand had been particularly strong in China and Taiwan, and we don't see any slowing in 2021, as 5G continues to roll out worldwide. We believe capacity in our industry remains very tight. We have and will continue to run capacity at our Beijing facility to keep pace with customer demand. Scaling quickly and cost it effectively is something AXT is uniquely able to do, and we expect to gain market share because we have the shortest lead time among our primary competitors. In data center connectivity, the ever-expanding number of users, devices, and applications is driving the transition to technology that transports faster, more scalable infrastructures. High-capacity connectivity will continue to be essential. In fact, many believe that the evolution from 100G to 400G will happen faster than the move to 100G. We are seeing this growth in silicon photonics reflected in our steady, strong demand in data center-related revenue. Moreover, we are pleased with the highly productive customer relationships we are developing in this area of our business, and we are applying the tier one processes we have developed to benefit customer experiences across our portfolio. In 2021, we expect to see the meaningful emergence of additional new applications for indium phosphide in such areas as healthcare monitoring and consumer devices. Money are being innovatively driven by tier one players and showcase the unique properties of indium phosphide. These applications have the potential to represent an entirely new growth area, for which we are well-
[ "ates for us, too. We hope to file the application with the China Securities Regulatory Commission by the end of June.\nThere's a lot to accomplish to achieve that goal, and it will be a busy four months for us. OK. This concludes the financial review. I'll now turn the call over to Dr.\nMorris Young for a review of our business. Morris?\nMorris Young -- Founder and Chief Executive Office\nThank you, Gary, and good afternoon, everybody. 2020 was a year of solid achievement for AXT, capped off by the growth in Q4, which is typically a seasonally down quarter. We completed the relocation of our gallium arsenide manufacturing, elevated our business and manufacturing processes to meet tier one standards, and expanded capacity in response to increasing demand. Now, with the gathering momentum of 5G and its related technologies, new applications emerging in healthcare and consumer devices, and the technology progression and data center connectivity, we believe AXT is in a strong, competitive position to lead our industry and enable many of the defining trends of the coming decades.\nAnd we are ready. In fact, we don't often make fiscal-year projections, but I will give you a few today. First, in 2021, we expect to bring eight-inch gallium arsenide and six-inch indium phosphide to market. We expect to exceed that elusive $30 million revenue quarter-per-quarter mark.\nWe expect to ramp up production with multiple tier one companies. And finally, we're excited to successfully move AXT toward a 2022 listing on the STAR Market in China. We believe this year will be transformative for AXT, and in turn, for our employees, our customers, and our shareholders. While we said it before, I am truly excited to report to you on our progress.\nSo let's now get started with indium phosphide. Q4 of 2020 was a strong -- second strongest revenue quarter for our indium phosphide portfolio in the history of AXT. Our results were exceeded only by Q2 2019 when we received a very large order from a single customer, who we believe is building an inventory for expected future demand. In Q4 of 2020, however, our revenue achievement was spread across many customers and money applications.\n", "We believe the current revenue diversity demonstrates the broad and sustainable nature of our growth opportunities in indium phosphide. It was in April of 2019 that we first mentioned 5G revenue on our earnings report. Let's say, a year later, 5G and its closely related power applications are driving significant growth in our indium phosphide revenue. Demand had been particularly strong in China and Taiwan, and we don't see any slowing in 2021, as 5G continues to roll out worldwide.\nWe believe capacity in our industry remains very tight. We have and will continue to run capacity at our Beijing facility to keep pace with customer demand. Scaling quickly and cost it effectively is something AXT is uniquely able to do, and we expect to gain market share because we have the shortest lead time among our primary competitors. In data center connectivity, the ever-expanding number of users, devices, and applications is driving the transition to technology that transports faster, more scalable infrastructures.\nHigh-capacity connectivity will continue to be essential. In fact, many believe that the evolution from 100G to 400G will happen faster than the move to 100G. We are seeing this growth in silicon photonics reflected in our steady, strong demand in data center-related revenue. Moreover, we are pleased with the highly productive customer relationships we are developing in this area of our business, and we are applying the tier one processes we have developed to benefit customer experiences across our portfolio.\nIn 2021, we expect to see the meaningful emergence of additional new applications for indium phosphide in such areas as healthcare monitoring and consumer devices. Money are being innovatively driven by tier one players and showcase the unique properties of indium phosphide. These applications have the potential to represent an entirely new growth area, for which we are well-" ]
2
[ 1, 1 ]
1
What was the revenue for the fourth quarter of 2020 for Intel
experiences for customers such as Tencent. We also announced the gold release of one API, our cross-industry open standards-based unified programming model that delivers a common developer experience across architectures. Second, we've made strong progress extending our reach to accelerate our growth. Over the past several years, we have been making investments that have positioned us to lead key technology inflections such as AI, 5G network transformation, and the intelligent autonomous edge. We infuse AI capabilities into everything we make from the cloud to PCs and we see tremendous growth prospects as we build our position in data center training to complement the strength of our Intel Xeon for inference. We made a significant step in AI this quarter when Amazon announced EC2 instances that will leverage up to eight of our Habana Gaudi AI training accelerators, and deliver up to 40% better price-performance than current GPU-based EC2 instances for machine learning workloads. We've also invested to drive networking workload convergence on Intel silicon. In 2020, we expanded our footprint into the Radio Access Network delivering Xeon SoCs, FPGAs, and custom solutions for 5G base station designs and reaching our goal of 40% share, two years ahead of our original target. Today, we are the leading network silicon provider winning in the wireless, enterprise, and cloud networks, and delivering $6 billion in revenue this year, up approximately 20% versus 2019. Finally, we have enviable assets to lead the explosive growth of intelligent and autonomous edge computing. Our IOTG and Mobileye businesses have combined annual revenue of $4 billion. Mobileye delivered a record fourth quarter and had an explosive start to 2021 with a number of exciting CES announcements. Third, we've maintained our discipline in thoughtfully allocating our shareholders' capital. Since 2015, we have grown revenue by more than $22 billion and more than doubled EPS. We've driven spending from 36% of revenue to 25% of revenue while investing in manufacturing capacity expansion, adding more than $1 billion of R&D targeted to higher growth initiatives, and focusing our product portfolio. As a result, we anticipate approximately $12 billion in proceeds from our NAND and McAfee exits over time. At the same time, we've been delivering substantial capital returns to shareholders, including $19.8 billion in 2020 alone through dividends and share buybacks, the latter of which included a $10 billion accelerated share repurchase announced in August. Building on this, today, we announced that we are increasing our annual dividend by $0.07, or 5% from $1.32 to $1.39 per share. Before I pass it to George for more details on our fourth-quarter results, I want to reiterate that I couldn't be more proud of the team at Intel and I cherish the time I've spent here. I look forward to watching Pat and the team's continued progress as they build on Intel's purpose to deliver breakthrough technology that enriches the lives of everyone on the planet. I also thank our investors and analysts on the line today for their continued support of Intel and for our valued engagements over the years. George Davis -- Chief Financial Officer Thanks, Bob, and good afternoon everyone. Q4 marked a much stronger than expected finish to a record year. Both Mobileye and our PC-centric segment achieved record quarters. Q4 revenue was $20 billion, exceeding our guidance by $2.6 billion. The revenue beat was broad-based led by stronger than expected notebook and cloud demand, along with contributions from desktop and enterprise and government. Datacenter related demand also led to stronger revenues in NAND. The gross margin for the quarter was 58.4%, exceeding the guide by 3 points due to flow through on higher revenue, and the benefit of Ice Lake server achieving production qualification prior to year-end. Q4 EPS was $1.52, $0.42 above our guide due to strong operational performance, and further boosted by gains from our ICAP portfolio. Excluding a one-time tax adjustment, about two-thirds of our
[ "experiences for customers such as Tencent. We also announced the gold release of one API, our cross-industry open standards-based unified programming model that delivers a common developer experience across architectures.\nSecond, we've made strong progress extending our reach to accelerate our growth. Over the past several years, we have been making investments that have positioned us to lead key technology inflections such as AI, 5G network transformation, and the intelligent autonomous edge. We infuse AI capabilities into everything we make from the cloud to PCs and we see tremendous growth prospects as we build our position in data center training to complement the strength of our Intel Xeon for inference. We made a significant step in AI this quarter when Amazon announced EC2 instances that will leverage up to eight of our Habana Gaudi AI training accelerators, and deliver up to 40% better price-performance than current GPU-based EC2 instances for machine learning workloads.\nWe've also invested to drive networking workload convergence on Intel silicon. In 2020, we expanded our footprint into the Radio Access Network delivering Xeon SoCs, FPGAs, and custom solutions for 5G base station designs and reaching our goal of 40% share, two years ahead of our original target. Today, we are the leading network silicon provider winning in the wireless, enterprise, and cloud networks, and delivering $6 billion in revenue this year, up approximately 20% versus 2019. Finally, we have enviable assets to lead the explosive growth of intelligent and autonomous edge computing.\nOur IOTG and Mobileye businesses have combined annual revenue of $4 billion. Mobileye delivered a record fourth quarter and had an explosive start to 2021 with a number of exciting CES announcements. Third, we've maintained our discipline in thoughtfully allocating our shareholders' capital. Since 2015, we have grown revenue by more than $22 billion and more than doubled EPS.\n", "We've driven spending from 36% of revenue to 25% of revenue while investing in manufacturing capacity expansion, adding more than $1 billion of R&D targeted to higher growth initiatives, and focusing our product portfolio. As a result, we anticipate approximately $12 billion in proceeds from our NAND and McAfee exits over time. At the same time, we've been delivering substantial capital returns to shareholders, including $19.8 billion in 2020 alone through dividends and share buybacks, the latter of which included a $10 billion accelerated share repurchase announced in August. Building on this, today, we announced that we are increasing our annual dividend by $0.07, or 5% from $1.32 to $1.39 per share.\nBefore I pass it to George for more details on our fourth-quarter results, I want to reiterate that I couldn't be more proud of the team at Intel and I cherish the time I've spent here. I look forward to watching Pat and the team's continued progress as they build on Intel's purpose to deliver breakthrough technology that enriches the lives of everyone on the planet. I also thank our investors and analysts on the line today for their continued support of Intel and for our valued engagements over the years.\nGeorge Davis -- Chief Financial Officer\nThanks, Bob, and good afternoon everyone. Q4 marked a much stronger than expected finish to a record year. Both Mobileye and our PC-centric segment achieved record quarters. Q4 revenue was $20 billion, exceeding our guidance by $2.6 billion.\nThe revenue beat was broad-based led by stronger than expected notebook and cloud demand, along with contributions from desktop and enterprise and government. Datacenter related demand also led to stronger revenues in NAND. The gross margin for the quarter was 58.4%, exceeding the guide by 3 points due to flow through on higher revenue, and the benefit of Ice Lake server achieving production qualification prior to year-end. Q4 EPS was $1.52, $0.42 above our guide due to strong operational performance, and further boosted by gains from our ICAP portfolio.\nExcluding a one-time tax adjustment, about two-thirds of our" ]
2
[ 0, 1 ]
0.63093
What is the expected growth rate for mobile data in the US market
ll discuss the expected financial impact of this agreement later in the call. Turning back to our focus on generating superior long-term returns, one of our core principles of our strategy is to remain U.S. only because we believe it represents the best market 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 to drive significant returns for our shareholders. Starting with the higher growth we see in the U.S., the demand for our shared infrastructure offering across towers, small cells and fiber is tied to the robust demand for mobile data in the U.S., which continues to increase by more than 30% annually. Because the outlook is so compelling, the U.S. wireless market continues to attract a disproportionate amount of global capital investment. This is likely due in part to the fact that the durability and scale of wireless data growth in the U.S. has repeatedly outperformed expectations. I remember fielding questions from investors and analysts nearly a decade ago, trying to understand why we were not expanding our tower business and the less established international markets that offer the promise of outsized growth to compensate for the outsize risk. The core set of assumptions underpinning that line of questioning included a view by many that it was inevitable that U.S. growth rates would flow. Leading to a desire to augment that growth by investing in international wireless markets, that hopefully would develop the same key set of fundamentals over time, that has made the U.S. market so successful for decades. We didn't buy into that argument at the time and sitting here today on the doorstep to 5G, we reach a similar conclusion that the U.S. is still among the highest growth markets for wireless infrastructure. Importantly, in a shared infrastructure business with long-term investment horizon, we have benefited from these superior growth rates while avoiding the risks associated with investment opportunities in less established international wireless market. These risks can have a meaningful impact on long-term returns and many have materialized in recent years, including the outsized churn due to less favorable industry dynamics relative to the U.S., sustained foreign currency devaluation that results in revenue churn, and disruptive social or governmental environments in less developed countries. Because we believe the U.S. has both greater potential for growth and lower risk, we are focused on growing cash flows on our 40,000 towers by providing access to existing and new customers that are building 5G wireless network. We are investing in new small cell and fiber assets that our customers need for their wireless networks, which we believe increases our ability to capitalize on the 5G growth trends in the U.S., and we are developing new capabilities and offerings that will leverage our existing assets to drive innovation. And we believe we'll further extend our growth opportunity, such as CBRS and edge computing. I believe that Crown Castle offer shareholders an unmatched opportunity to benefit from the launch of 5G wireless networks in the U.S. In the near to medium term, we expect to deliver outsized AFFO per share growth of 11% this year, as we translate this increasing 5G activity in the very attractive bottom-line growth. We expect to once again deliver the highest tower revenue growth rate in the U.S. among our public tower peers in 2021. And our customers are affirming the value we bring with our comprehensive portfolio of shared wireless infrastructure assets by entering into long-term agreements to access those assets. Longer term, we believe Crown Castle provides an exciting opportunity for shareholders to potentially compound double-digit total returns over a long period of time with a high-quality dividend that currently yields 3% and that we expect to be able to grow 7% to 8% annually. When I consider the dura
[ "ll discuss the expected financial impact of this agreement later in the call.\nTurning back to our focus on generating superior long-term returns, one of our core principles of our strategy is to remain U.S. only because we believe it represents the best market 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 to drive significant returns for our shareholders.\nStarting with the higher growth we see in the U.S., the demand for our shared infrastructure offering across towers, small cells and fiber is tied to the robust demand for mobile data in the U.S., which continues to increase by more than 30% annually. Because the outlook is so compelling, the U.S. wireless market continues to attract a disproportionate amount of global capital investment. This is likely due in part to the fact that the durability and scale of wireless data growth in the U.S. has repeatedly outperformed expectations. I remember fielding questions from investors and analysts nearly a decade ago, trying to understand why we were not expanding our tower business and the less established international markets that offer the promise of outsized growth to compensate for the outsize risk.\nThe core set of assumptions underpinning that line of questioning included a view by many that it was inevitable that U.S. growth rates would flow. Leading to a desire to augment that growth by investing in international wireless markets, that hopefully would develop the same key set of fundamentals over time, that has made the U.S. market so successful for decades. We didn't buy into that argument at the time and sitting here today on the doorstep to 5G, we reach a similar conclusion that the U.S. is still among the highest growth markets for wireless infrastructure.\nImportantly, in a shared infrastructure business with long-term investment horizon, we have benefited from these superior growth rates while avoiding the risks associated with investment opportunities in less established international wireless market. These risks can have a meaningful impact on long-term returns and many have materialized in recent years, including the outsized churn due to less favorable industry dynamics relative to the U.S., sustained foreign currency devaluation that results in revenue churn, and disruptive social or governmental environments in less developed countries. Because we believe the U.S. has both greater potential for growth and lower risk, we are focused on growing cash flows on our 40,000 towers by providing access to existing and new customers that are building 5G wireless network.\n", "We are investing in new small cell and fiber assets that our customers need for their wireless networks, which we believe increases our ability to capitalize on the 5G growth trends in the U.S., and we are developing new capabilities and offerings that will leverage our existing assets to drive innovation. And we believe we'll further extend our growth opportunity, such as CBRS and edge computing. I believe that Crown Castle offer shareholders an unmatched opportunity to benefit from the launch of 5G wireless networks in the U.S.\nIn the near to medium term, we expect to deliver outsized AFFO per share growth of 11% this year, as we translate this increasing 5G activity in the very attractive bottom-line growth. We expect to once again deliver the highest tower revenue growth rate in the U.S. among our public tower peers in 2021. And our customers are affirming the value we bring with our comprehensive portfolio of shared wireless infrastructure assets by entering into long-term agreements to access those assets. Longer term, we believe Crown Castle provides an exciting opportunity for shareholders to potentially compound double-digit total returns over a long period of time with a high-quality dividend that currently yields 3% and that we expect to be able to grow 7% to 8% annually.\nWhen I consider the dura" ]
2
[ 0, 0 ]
0
What was the full cost of the Lasergen program in the Q2 results
? What's your outlook, maybe again? Not asking for guidance by any means, but over the next six months to 12 months, does this have the potential to linger versus some of the other ones that should snapback with? Mike McMullen -- President and Chief Executive Officer In my prepared remarks, we basically said we expect this segment to be subdued for the foreseeable future. So it's really just tied to events that I'm just not smart enough to figure out myself, which is when does global growth start to get solidified and when does it start to turn. I think what we wanted to point out, there actually are some little glimmers of positive aspects of C&E business, particularly the COVID-19 has exposed the fragility of the world's supply chain. And we're seeing many customers and many governments, they want certain critical components made in their country and made in their region. So we are seeing indications across multiple industries of onshoring initiatives actually starting, which would speak to some longer-term growth prospects in this space. But don't get too excited. This -- I would just say, let's assume that it's going to stay subdued for a while, as we're thinking about it right now. Hence, the reason why we went through the guidance in Q2, because some of these are just too difficult to predict the timing of transition. Robert W. McMahon -- Senior Vice President, Agilent Chief Financial Officer Yeah. And I would say, Patrick, just on that, obviously, the more subdued piece is the instrumentation... Mike McMullen -- President and Chief Executive Officer Yeah, absolutely. Robert W. McMahon -- Senior Vice President, Agilent Chief Financial Officer And we will see the snapback or the improvement first in the ACG business. Mike McMullen -- President and Chief Executive Officer Yeah. Absolutely. Patrick Donnelly -- Citi -- Analyst That's really helpful. And then a very quick cleanup on NASD, following up Tycho's question there. Do you guys have capacity to increase the address demand from COVID or are you already kind of maxed out in terms of the build out and just as you build out capacity, it's kind of addressing? Mike McMullen -- President and Chief Executive Officer We are not capacity constrained. And now, we continue to build out the new facility in Frederick as well as optimizing our Boulder facility. And while I can't share specific names, I can tell you that there are programs under way that aren't in the revenue yet right now that are related to COVID-19 work. Patrick Donnelly -- Citi -- Analyst Great. Thanks a lot, Mike. Mike McMullen -- President and Chief Executive Officer You are quite welcome. Operator Our next question comes from the line of Derik de Bruin of Bank of America. Please go ahead. Your line is open. Mike McMullen -- President and Chief Executive Officer Hey, Derik. Derik de Bruin -- Bank of America -- Analyst Hello. Good afternoon. Hi. Couple of questions, just a couple of cleanups. The NASD base now in 2Q, what's that -- where are we in terms of revenues? That was up 35%. I'm just curious on the base. Mike McMullen -- President and Chief Executive Officer Yeah. It's tracking well to the number that we talked about at the -- or what people have estimated, ramping up to $150 million kind of run rate. It's tracking well to that. Derik de Bruin -- Bank of America -- Analyst Great. And what are you going to do with the -- are you reinvesting the Lasergen money into the business or is that going to drop through? Are you going to -- and can you remind us on what you were spending on that I think it was around $50-ish million. Mike McMullen -- President and Chief Executive Officer Yeah. No, it was about $30 million a year. That was what was kind of forecasted this year. We've spent basically half of that. So the second half of the year, that'll be a combination of reinvesting where appropriate and also managing the dynamic situation that we're in, in terms of COVID-19. Hey, Bob, I think we had the full cost of the program in our Q2 results, in our next quarter results. Robert W. McMahon -- Senior Vice
[ "? What's your outlook, maybe again? Not asking for guidance by any means, but over the next six months to 12 months, does this have the potential to linger versus some of the other ones that should snapback with?\nMike McMullen -- President and Chief Executive Officer\nIn my prepared remarks, we basically said we expect this segment to be subdued for the foreseeable future. So it's really just tied to events that I'm just not smart enough to figure out myself, which is when does global growth start to get solidified and when does it start to turn. I think what we wanted to point out, there actually are some little glimmers of positive aspects of C&E business, particularly the COVID-19 has exposed the fragility of the world's supply chain. And we're seeing many customers and many governments, they want certain critical components made in their country and made in their region.\nSo we are seeing indications across multiple industries of onshoring initiatives actually starting, which would speak to some longer-term growth prospects in this space. But don't get too excited. This -- I would just say, let's assume that it's going to stay subdued for a while, as we're thinking about it right now. Hence, the reason why we went through the guidance in Q2, because some of these are just too difficult to predict the timing of transition.\nRobert W. McMahon -- Senior Vice President, Agilent Chief Financial Officer\nYeah. And I would say, Patrick, just on that, obviously, the more subdued piece is the instrumentation...\nMike McMullen -- President and Chief Executive Officer\nYeah, absolutely.\nRobert W. McMahon -- Senior Vice President, Agilent Chief Financial Officer\nAnd we will see the snapback or the improvement first in the ACG business.\nMike McMullen -- President and Chief Executive Officer\nYeah. Absolutely.\nPatrick Donnelly -- Citi -- Analyst\nThat's really helpful. And then a very quick cleanup on NASD, following up Tycho's question there. Do you guys have capacity to increase the address demand from COVID or are you already kind of maxed out in terms of the build out and just as you build out capacity, it's kind of addressing?\nMike McMullen -- President and Chief Executive Officer\n", "We are not capacity constrained. And now, we continue to build out the new facility in Frederick as well as optimizing our Boulder facility. And while I can't share specific names, I can tell you that there are programs under way that aren't in the revenue yet right now that are related to COVID-19 work.\nPatrick Donnelly -- Citi -- Analyst\nGreat. Thanks a lot, Mike.\nMike McMullen -- President and Chief Executive Officer\nYou are quite welcome.\nOperator\nOur next question comes from the line of Derik de Bruin of Bank of America. Please go ahead. Your line is open.\nMike McMullen -- President and Chief Executive Officer\nHey, Derik.\nDerik de Bruin -- Bank of America -- Analyst\nHello. Good afternoon. Hi. Couple of questions, just a couple of cleanups. The NASD base now in 2Q, what's that -- where are we in terms of revenues? That was up 35%. I'm just curious on the base.\nMike McMullen -- President and Chief Executive Officer\nYeah. It's tracking well to the number that we talked about at the -- or what people have estimated, ramping up to $150 million kind of run rate. It's tracking well to that.\nDerik de Bruin -- Bank of America -- Analyst\nGreat. And what are you going to do with the -- are you reinvesting the Lasergen money into the business or is that going to drop through? Are you going to -- and can you remind us on what you were spending on that I think it was around $50-ish million.\nMike McMullen -- President and Chief Executive Officer\nYeah. No, it was about $30 million a year. That was what was kind of forecasted this year. We've spent basically half of that. So the second half of the year, that'll be a combination of reinvesting where appropriate and also managing the dynamic situation that we're in, in terms of COVID-19. Hey, Bob, I think we had the full cost of the program in our Q2 results, in our next quarter results.\nRobert W. McMahon -- Senior Vice " ]
2
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1
What kind of homes were there?
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
[ "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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1
What is the expected free cash flow for the combined UPC Sunrise operation in the long term
ash to shareholders this year. The other major factor here is continuous innovation across our product and technology road maps. In Holland, VodafoneZiggo is rolling out a nationwide one gig network. They were the first to roll out 5G, and they've embraced our Horizon entertainment platform. And that sort of innovation is occurring across the European footprint. It all begins with network superiority in markets like the U.K., for example, where Project Lighting has been a resounding success. In fact, we've included the latest figures in the appendix of this deck, so check them out. And we continue to be bullish on continued expansion of Lightning. We're also working on a clear path to 10G or 10 gigabits per second using a combination of HSC and fiber to the home. The pace of innovation of 5G mobile is equally critical, with VodafoneZiggo and Sunrise and others leading the way in their markets. Robust and reliable network support innovation and connectivity, which is where this all began, and we've led the way with smart and intelligent WiFi and better, faster and cheaper CPE. And then finally, our entertainment platform continues to delight customers with the best user interface, seamless integration of apps, voice control and tons of other features. And importantly, Horizon has also laid the groundwork for our migration to an all IP video services platform with our Apollo Box. This is network agnostic, app centric, portable and low cost. This is where the entertainment business is headed. And we're leading the way again in Europe. Now our success in Holland and Belgium really underscore our excitement about the Sunrise acquisition, which we recap a bit for you on Slide seven. The main driver here is scale. UPC and Sunrise together create a clear number two to Swisscom, one of Europe's most attractive and stable markets, with around a 30% share across all services and a significant opportunity to grab meaningful share in B2B. Now like our other FMC deals, the combination is anchored in best-in-class networks. Right out of the gate, UPC Sunrise will reach 90% of the fixed market with one gig services. Now they'll have leadership in 4G mobile and the largest and fastest 5G network in the country. Now the synergies are also substantial. You'd expect that with an NPV of over CHF three billion, about 80% of which is attributable to opex and capex efficiencies. The real opportunity here is to deliver the sort of combined financial growth profile that we've seen in Holland. I'm not saying the numbers will be the exact same, but we're convinced that scale, market strength and synergies will deliver stable free cash flow for a very, very long time. It's also worth mentioning that both operations had a strong Q3. As you can see from the charts on the right, UPC continues to deliver improved subscriber trends with a record sales month for mobile in September and consistent improvement in broadband. Sunrise released their results earlier today, also a very strong quarter with positive service revenue growth despite roaming headwinds, positive EBITDA growth, which reflects strong cost management. They also delivered their best quarter of postpaid mobile ads in a decade and really strong broadband and TV customer growth. So far, the premerger integration work here has validated the synergy estimates and clearly establish the opportunity for Sunrise and UPC together to give Swisscom a run for its money. I'll end on Slide eight with a quick look at Liberty Global, what we look like pro forma for both the Swiss and the U.K. transactions. Now most of you know this, but it's really, really important to continually reinforce the narrative of how we've transformed this company. After spending over a decade, consolidating cable and chasing broadband market share, we saw the fixed mobile convergence story developing in Europe around five years ago. Around that time, the incumbent telcos started prioritizing their fixed networks and broadband growth together with wireless. And they left the other three to four mobile operators struggling to com
[ "ash to shareholders this year.\nThe other major factor here is continuous innovation across our product and technology road maps. In Holland, VodafoneZiggo is rolling out a nationwide one gig network. They were the first to roll out 5G, and they've embraced our Horizon entertainment platform. And that sort of innovation is occurring across the European footprint. It all begins with network superiority in markets like the U.K., for example, where Project Lighting has been a resounding success. In fact, we've included the latest figures in the appendix of this deck, so check them out. And we continue to be bullish on continued expansion of Lightning. We're also working on a clear path to 10G or 10 gigabits per second using a combination of HSC and fiber to the home. The pace of innovation of 5G mobile is equally critical, with VodafoneZiggo and Sunrise and others leading the way in their markets.\nRobust and reliable network support innovation and connectivity, which is where this all began, and we've led the way with smart and intelligent WiFi and better, faster and cheaper CPE. And then finally, our entertainment platform continues to delight customers with the best user interface, seamless integration of apps, voice control and tons of other features. And importantly, Horizon has also laid the groundwork for our migration to an all IP video services platform with our Apollo Box. This is network agnostic, app centric, portable and low cost. This is where the entertainment business is headed. And we're leading the way again in Europe. Now our success in Holland and Belgium really underscore our excitement about the Sunrise acquisition, which we recap a bit for you on Slide seven.\n", "The main driver here is scale. UPC and Sunrise together create a clear number two to Swisscom, one of Europe's most attractive and stable markets, with around a 30% share across all services and a significant opportunity to grab meaningful share in B2B. Now like our other FMC deals, the combination is anchored in best-in-class networks. Right out of the gate, UPC Sunrise will reach 90% of the fixed market with one gig services. Now they'll have leadership in 4G mobile and the largest and fastest 5G network in the country. Now the synergies are also substantial. You'd expect that with an NPV of over CHF three billion, about 80% of which is attributable to opex and capex efficiencies. The real opportunity here is to deliver the sort of combined financial growth profile that we've seen in Holland.\nI'm not saying the numbers will be the exact same, but we're convinced that scale, market strength and synergies will deliver stable free cash flow for a very, very long time. It's also worth mentioning that both operations had a strong Q3. As you can see from the charts on the right, UPC continues to deliver improved subscriber trends with a record sales month for mobile in September and consistent improvement in broadband. Sunrise released their results earlier today, also a very strong quarter with positive service revenue growth despite roaming headwinds, positive EBITDA growth, which reflects strong cost management. They also delivered their best quarter of postpaid mobile ads in a decade and really strong broadband and TV customer growth. So far, the premerger integration work here has validated the synergy estimates and clearly establish the opportunity for Sunrise and UPC together to give Swisscom a run for its money.\nI'll end on Slide eight with a quick look at Liberty Global, what we look like pro forma for both the Swiss and the U.K. transactions. Now most of you know this, but it's really, really important to continually reinforce the narrative of how we've transformed this company. After spending over a decade, consolidating cable and chasing broadband market share, we saw the fixed mobile convergence story developing in Europe around five years ago. Around that time, the incumbent telcos started prioritizing their fixed networks and broadband growth together with wireless. And they left the other three to four mobile operators struggling to com" ]
2
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1
What is the total international tower and DAS investments in the company
increases, mobile network operators continue to deploy meaningful wireless capex. Service providers in the international markets, where we have a presence, are expected to spend approximately $30 billion on their networks in 2020, in essence doubling the TAM of our U.S. market alone. With mobile broadband penetration growing, we continue to expect to generate higher organic growth rates internationally than in the United States over the long term, while driving meaningful expansion in our international return on invested capital. Fundamentally, we are utilizing our international strategy to increase and extend our overall global return profile. The ongoing COVID-19 pandemic has served to further highlight the criticality of wireless connectivity internationally, particularly in markets where fixed-line penetration is minimal. Unlike in the United States, where most of us are plugging into our Wi-Fi-enabled fixed-line connections as we work from home, mobile networks serve as the backbone of virtually all work-from-home functions in these international locations. And as you can imagine, broad-based stay-at-home orders and other restrictions that have been implemented in these markets over the last several months have led to additional strain on existing mobile networks. For example, Vodafone Idea in India noted that they experienced a year's worth of data traffic across their network in a single week following the implementation of lockdown measures. Similarly, major carriers across Latin America, Africa and Europe have outlined significant spikes in data usage, and regulators have allocated additional temporary spectrum and implemented other policies to help maintain connectivity. As I mentioned earlier, we are committed to doing everything we can to support our tenants as they deal with the strain of this increased usage on their networks. Now I'd like to take a few minutes to discuss the attractive economics that we were driving across our international business. In the second quarter, our international operations accounted for roughly 43% of our property revenue and about one-third of our property operating profit. Our international tower and DAS properties drove an annualized cash gross margin of over $1.8 billion in the quarter, resulting in a nearly 9.5% NOI yield on our more than $19 billion in total international tower and DAS investments, as you can see on Slide 6 of our earnings presentation. This NOI yield includes both sites that we have recently acquired as well as sites that have been in our portfolio for a number of years, benefiting from long-term tenancy and revenue growth. Our most seasoned vintage of international sites, those built or acquired prior to 2010, is yielding approximately 24% in U.S. dollar terms, illustrating the power of operating leverage within our business. We view this type of return profile as a clear indication that international tower assets have the capacity to drive economics that are equal to or better than the United States' tower model over the long term. Importantly, I'll note that the NOI yield numbers I'm referencing today are U.S. dollar equivalents, that is, they take into account any foreign currency devaluation in the numerator while freezing the denominator at historical exchange rates in the period in which the sites were acquired or built. Over the last 20 years, especially since 2007, we have been steadily growing our international portfolio with a focus on macro towers in some of the largest free-market democracies worldwide. Through a combination of our highly efficient new build programs and selective acquisitions, including the Eaton Towers deal we closed at the end of last year, we've added more than 130,000 international sites in just the last decade, including more than 24,000 sites we built ourselves. These sites typically have lower initial returns due to lower initial tenancy. You can see this on the slide, where sites we've added to our international portfolio between 2010 and '14 are generating yields of 10%, and those added since 2015 are generating yi
[ "increases, mobile network operators continue to deploy meaningful wireless capex. Service providers in the international markets, where we have a presence, are expected to spend approximately $30 billion on their networks in 2020, in essence doubling the TAM of our U.S. market alone.\nWith mobile broadband penetration growing, we continue to expect to generate higher organic growth rates internationally than in the United States over the long term, while driving meaningful expansion in our international return on invested capital. Fundamentally, we are utilizing our international strategy to increase and extend our overall global return profile. The ongoing COVID-19 pandemic has served to further highlight the criticality of wireless connectivity internationally, particularly in markets where fixed-line penetration is minimal. Unlike in the United States, where most of us are plugging into our Wi-Fi-enabled fixed-line connections as we work from home, mobile networks serve as the backbone of virtually all work-from-home functions in these international locations.\nAnd as you can imagine, broad-based stay-at-home orders and other restrictions that have been implemented in these markets over the last several months have led to additional strain on existing mobile networks. For example, Vodafone Idea in India noted that they experienced a year's worth of data traffic across their network in a single week following the implementation of lockdown measures. Similarly, major carriers across Latin America, Africa and Europe have outlined significant spikes in data usage, and regulators have allocated additional temporary spectrum and implemented other policies to help maintain connectivity. As I mentioned earlier, we are committed to doing everything we can to support our tenants as they deal with the strain of this increased usage on their networks.\nNow I'd like to take a few minutes to discuss the attractive economics that we were driving across our international business. In the second quarter, our international operations accounted for roughly 43% of our property revenue and about one-third of our property operating profit. Our international tower and DAS properties drove an annualized cash gross margin of over $1.8 billion in the quarter, resulting in a nearly 9.5% NOI yield on our more than $19 billion in total international tower and DAS investments, as you can see on Slide 6 of our earnings presentation. This NOI yield includes both sites that we have recently acquired as well as sites that have been in our portfolio for a number of years, benefiting from long-term tenancy and revenue growth.\n", "Our most seasoned vintage of international sites, those built or acquired prior to 2010, is yielding approximately 24% in U.S. dollar terms, illustrating the power of operating leverage within our business. We view this type of return profile as a clear indication that international tower assets have the capacity to drive economics that are equal to or better than the United States' tower model over the long term. Importantly, I'll note that the NOI yield numbers I'm referencing today are U.S.\ndollar equivalents, that is, they take into account any foreign currency devaluation in the numerator while freezing the denominator at historical exchange rates in the period in which the sites were acquired or built. Over the last 20 years, especially since 2007, we have been steadily growing our international portfolio with a focus on macro towers in some of the largest free-market democracies worldwide. Through a combination of our highly efficient new build programs and selective acquisitions, including the Eaton Towers deal we closed at the end of last year, we've added more than 130,000 international sites in just the last decade, including more than 24,000 sites we built ourselves. These sites typically have lower initial returns due to lower initial tenancy.\nYou can see this on the slide, where sites we've added to our international portfolio between 2010 and '14 are generating yields of 10%, and those added since 2015 are generating yi" ]
2
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0
What is the expected revenue for the T-Mobile deployment in the long term?
really again to come back to driving tower-like communications infrastructure business models. So that's it. I'm a short setting couple of soundbites, and you'll continually hear more and more about our strategy there as it develops. And as we continue to go down the journey. Sami Badri -- Credit Suisse -- Analyst Got it. Thank you. That was actually a lot of detail. Just one quick follow-up on that and this fall mainly has to do with domestic versus international and this micro opportunity. A lot of the focus and the commentary has been focused on the domestic deployment of micro data centers. But what about international, right. There are clearly big differences in terms of how the network looks abroad. And do you see edge being a much bigger opportunity abroad versus domestic at least it's in the next two to three years, or is it going to be predominately focused on domestic opportunities for now. Tom Bartlett -- President and Chief Executive Officer As I mentioned before traditionally, our international markets are a couple of technologies behind where they are in the United States. Having said that though, I think one of the real advantages that we bring to a venture is our global reach. And the lack of really processing capability in many of the emerging markets that we have today. And so while I think this strategy will probably more initially develop in the United States, I think the real value ultimately, particularly, as the world shrinks, and as the cloud learns -- will connect us a whole and does move to the edge. I think our global reach is actually a really interesting element. To what as I said, we bring to the party, and so it's difficult to say how the outside the United State market might develop. We might find in certain markets that it may develop more quickly and that the edge compute capability turns into more than just an edge. You may be able to cluster certain edges to provide more of a metro data facility. Again, particularly, in areas of the world where there really isn't a lot of data center presence. So it'll be a very interesting question. And one, we're getting our arms around and understanding exactly what are the benefits as a result of having that global reach. I think candidly that they're significant, and we'll try to leverage that as much as we possibly can. Sami Badri -- Credit Suisse -- Analyst Thank you, very much. Operator And our final question comes from Batya Levi with UBS. Please, go ahead. Batya Levi -- UBS -- Analyst Great. Thank you. A couple of follow-ups under Timor MLA again. I think you adjusted the straight line for this year, $20 million higher than the original guidance. What drove that. And second, in terms of as you look at the T-Mobile deployment, you have a pretty good insight into the long term and that will expand. Would you be able to provide some color if you think that you took a larger share of Timor's future activity with this long term contract. And also to the extent that T-Mobile acquires more spectrum or builds more sites do you -- can you give us some commentary in terms of could there be upside to this existing MLA, or is it mostly captured at least for the next few years. Tom Bartlett -- President and Chief Executive Officer Yeah. No thanks. Let me start in a right to get in to add any additional color. On the straight line, I mean it's -- we're just refining the calculations as you might expect it. It's a very complicated calculation. And so it was just the refinement of the calculation is that we are able to do so. There's nothing remarkable I think going on with regards to the actual straight-line calculation. And with regard to your other question, I mean all of our contracts are designed to take more than our fair share of the business. And as I mentioned before historically in the United States, we've captured over 50% of the new business in the United States. And so our contracts are designed to do that but in a way that's providing a meaningful capability and service to our customers. And so with regards to that the agreement that we put in
[ " really again to come back to driving tower-like communications infrastructure business models. So that's it. I'm a short setting couple of soundbites, and you'll continually hear more and more about our strategy there as it develops. And as we continue to go down the journey.\nSami Badri -- Credit Suisse -- Analyst\nGot it. Thank you. That was actually a lot of detail. Just one quick follow-up on that and this fall mainly has to do with domestic versus international and this micro opportunity.\nA lot of the focus and the commentary has been focused on the domestic deployment of micro data centers. But what about international, right. There are clearly big differences in terms of how the network looks abroad. And do you see edge being a much bigger opportunity abroad versus domestic at least it's in the next two to three years, or is it going to be predominately focused on domestic opportunities for now.\nTom Bartlett -- President and Chief Executive Officer\nAs I mentioned before traditionally, our international markets are a couple of technologies behind where they are in the United States. Having said that though, I think one of the real advantages that we bring to a venture is our global reach. And the lack of really processing capability in many of the emerging markets that we have today. And so while I think this strategy will probably more initially develop in the United States, I think the real value ultimately, particularly, as the world shrinks, and as the cloud learns -- will connect us a whole and does move to the edge.\nI think our global reach is actually a really interesting element. To what as I said, we bring to the party, and so it's difficult to say how the outside the United State market might develop. We might find in certain markets that it may develop more quickly and that the edge compute capability turns into more than just an edge. You may be able to cluster certain edges to provide more of a metro data facility.\nAgain, particularly, in areas of the world where there really isn't a lot of data center presence. So it'll be a very interesting question. And one, we're getting our arms around and understanding exactly what are the benefits as a result of having that global reach. I think candidly that they're significant, and we'll try to leverage that as much as we possibly can.\nSami Badri -- Credit Suisse -- Analyst\nThank you, very much.\nOperator\nAnd our final question comes from Batya Levi with UBS. Please, go ahead.\n", "Batya Levi -- UBS -- Analyst\nGreat. Thank you. A couple of follow-ups under Timor MLA again. I think you adjusted the straight line for this year, $20 million higher than the original guidance.\nWhat drove that. And second, in terms of as you look at the T-Mobile deployment, you have a pretty good insight into the long term and that will expand. Would you be able to provide some color if you think that you took a larger share of Timor's future activity with this long term contract. And also to the extent that T-Mobile acquires more spectrum or builds more sites do you -- can you give us some commentary in terms of could there be upside to this existing MLA, or is it mostly captured at least for the next few years.\nTom Bartlett -- President and Chief Executive Officer\nYeah. No thanks. Let me start in a right to get in to add any additional color. On the straight line, I mean it's -- we're just refining the calculations as you might expect it.\nIt's a very complicated calculation. And so it was just the refinement of the calculation is that we are able to do so. There's nothing remarkable I think going on with regards to the actual straight-line calculation. And with regard to your other question, I mean all of our contracts are designed to take more than our fair share of the business.\nAnd as I mentioned before historically in the United States, we've captured over 50% of the new business in the United States. And so our contracts are designed to do that but in a way that's providing a meaningful capability and service to our customers. And so with regards to that the agreement that we put in" ]
2
[ 1, 0 ]
1
What is the company's gross margin for the 2023-Q1 period
t the company is making to society by providing these jobs. Of course, it's also something that Alibaba very much needs. We need to continue to stay fresh. We need to take on that fresh blood, if you like, this is refreshing the metabolism of our company, which is indeed a young Internet company, but one with some considerable history that needs this kind of ongoing refreshment. Daniel Zhang -- Chairman and Chief Executive Officer [Foreign language] Unknown speaker And then, Alicia, the other part of your question had to do with new investment opportunities in emerging new growth areas. The fact is that there will always be an infinite number of new technologies and new industries on the rise but for any company and for Alibaba, we need to view those opportunities through the lens of our core strategy. Daniel Zhang -- Chairman and Chief Executive Officer [Foreign language] Unknown speaker New energy is, of course, a huge opportunity. And for Alibaba, we seek to leverage that opportunity mainly in the context of our cloud business because as I've talked about, in the Sunrise industries, new and emerging industries, it's possible to leapfrog to a higher level faster jumping past the previous development stages. You can quickly adopt these new technologies and fresh approaches. The same is also true of autonomous vehicles and the metaverse as well, linking that to our business, consumption and logistics. So the metaverse in relation to consumption and autonomous vehicles in relation to our logistics, New energy is very much linked to our cloud business. So we're finding opportunities to leverage the emergence of these new technologies and these new industries in our existing businesses, viewing it through those lenses. The other piece is, of course, globalization. I've often talked about our three core strategies of consumption, cloud and globalization to horizontal and one vertical. So we're looking at how we can leverage these technologies in terms of commerce, consumption and cloud, but also looking at whether some kinds of know-how from China can be taken into global markets or whether in global markets, there are opportunities that can be pursued there. But those continue to be our three core strategies. Rob Lin -- Head of Investor Relations OK. Well, thank you, everyone, for joining our conference call today. If you have any questions, please feel free to reach out to the Alibaba IR team. Thank you. Operator [Operator signoff] Duration: 0 minutes Call participants: Rob Lin -- Head of Investor Relations Daniel Zhang -- Chairman and Chief Executive Officer Toby Xu -- Chief Financial Officer Ronald Keung -- Goldman Sachs -- Analyst Unknown speaker Thomas Chong -- Jefferies -- Analyst Alex Yao -- J.P. Morgan -- Analyst John Choi -- Daiwa Capital Markets -- Analyst Yang Bai -- CICC -- Analyst Alicia Yap -- Citi -- Analyst More BABA analysis All earnings call transcripts
[ "t the company is making to society by providing these jobs. Of course, it's also something that Alibaba very much needs. We need to continue to stay fresh. We need to take on that fresh blood, if you like, this is refreshing the metabolism of our company, which is indeed a young Internet company, but one with some considerable history that needs this kind of ongoing refreshment.\nDaniel Zhang -- Chairman and Chief Executive Officer\n[Foreign language]\nUnknown speaker\nAnd then, Alicia, the other part of your question had to do with new investment opportunities in emerging new growth areas. The fact is that there will always be an infinite number of new technologies and new industries on the rise but for any company and for Alibaba, we need to view those opportunities through the lens of our core strategy.\nDaniel Zhang -- Chairman and Chief Executive Officer\n[Foreign language]\nUnknown speaker\nNew energy is, of course, a huge opportunity. And for Alibaba, we seek to leverage that opportunity mainly in the context of our cloud business because as I've talked about, in the Sunrise industries, new and emerging industries, it's possible to leapfrog to a higher level faster jumping past the previous development stages. You can quickly adopt these new technologies and fresh approaches. The same is also true of autonomous vehicles and the metaverse as well, linking that to our business, consumption and logistics.\nSo the metaverse in relation to consumption and autonomous vehicles in relation to our logistics, New energy is very much linked to our cloud business. So we're finding opportunities to leverage the emergence of these new technologies and these new industries in our existing businesses, viewing it through those lenses. The other piece is, of course, globalization. I've often talked about our three core strategies of consumption, cloud and globalization to horizontal and one vertical.\nSo we're looking at how we can leverage these technologies in terms of commerce, consumption and cloud, but also looking at whether some kinds of know-how from China can be taken into global markets or whether in global markets, there are opportunities that can be pursued there. But those continue to be our three core strategies.\nRob Lin -- Head of Investor Relations\nOK. Well, thank you, everyone, for joining our conference call today. If you have any questions, please feel free to reach out to the Alibaba IR team. Thank you.\nOperator\n[Operator signoff]\nDuration: 0 minutes\nCall participants:\nRob Lin -- Head of Investor Relations\nDaniel Zhang -- Chairman and Chief Executive Officer\nToby Xu -- Chief Financial Officer\n", "Ronald Keung -- Goldman Sachs -- Analyst\nUnknown speaker\nThomas Chong -- Jefferies -- Analyst\nAlex Yao -- J.P. Morgan -- Analyst\nJohn Choi -- Daiwa Capital Markets -- Analyst\nYang Bai -- CICC -- Analyst\nAlicia Yap -- Citi -- Analyst\nMore BABA analysis\nAll earnings call transcripts" ]
2
[ 0, 0 ]
0
Where will treatment be administered?
Dressed in a Superman shirt, 5-year-old Youssif held his sister's hand Friday, seemingly unaware that millions of people across the world have been touched by his story. Nearby, his parents talked about the new future and hope they have for their boy -- and the potential for recovery from his severe burns. Youssif holds his sister's hand Friday. He's wearing a facial mask often used to help burn victims. It's the best birthday present the Iraqi family could ever have imagined for their boy: Youssif turns 6 next Friday. "I was so happy I didn't know what to do with myself," his mother, Zainab, told CNN, a broad smile across her face. "I didn't think the reaction would be this big." His father said he was on the roof of his house when CNN called him with the news about the outpouring of support for his son. "We just want to thank everyone who has come forward," he said. "We knew there was kindness out there." Like his wife, he couldn't stop smiling. He talked about how he tried in vain to get help for his son in Baghdad, leaving "no stone unturned" on a mission to help his boy. There were many trips to the Ministry of Health. He says he even put in a request to Iraq's parliament for help. The family eventually told CNN their story -- that Youssif was grabbed by masked men outside their home on January 15, doused in gasoline and set on fire. Simply by coming forward, his parents put themselves in incredible danger. No one has been arrested or held accountable in Youssif's case. Watch CNN's Arwa Damon describe 'truly phenomenal' outpouring » Shortly after Youssif's story aired Wednesday, the Children's Burn Foundation -- a nonprofit organization based in Sherman Oaks, California, that provides support for burn victims locally, nationally and internationally -- agreed to pay for the transportation for Youssif and his family to come to the United States and to set up a fund for donations. You can make a donation at the foundation's site by clicking here. There's a drop-down menu under the "general donation" area that is marked "Youssif's fund." The foundation says it will cover all medical costs -- from surgeries for Youssif to housing costs to any social rehabilitation that might be needed for him. Surgeries will be performed by Dr. Peter Grossman, a plastic surgeon with the affiliated Grossman Burn Center who is donating his services for Youssif's cause. Officials are still trying to get the appropriate visas for the family's travels. "We are prepared to have them come here, set them up in a housing situation, provide support for them and begin treatment," said Barbara Friedman, executive director of the Children's Burn Foundation. "We expect that the treatment will be from between six months to a year with many surgeries." She added, "He will be getting the absolute best care that's available." Youssif's parents said they know it's going to be a lengthy and difficult process and that adjusting to their stay in America may not be easy. But none of that matters -- getting help for their boy is first and foremost. "I will do anything for Youssif," his father said, pulling his son closer to him. "Our child is everything." His mother tried to coax Youssif to talk to us on this day. But he didn't want to; his mother says he's shy outside of their home. The biggest obstacle now is getting the visas to leave, and the serious security risks they face every day and hour they remain in Iraq. But this family -- which saw the very worst in humanity on that January day -- has new hope in the world. That is partly due to the tens of thousands of CNN.com users who were so moved by the story and wanted to act. CNN Iraqi staff central to bringing this story together were also overwhelmed with
[ "Dressed in a Superman shirt, 5-year-old Youssif held his sister's hand Friday, seemingly unaware that millions of people across the world have been touched by his story. Nearby, his parents talked about the new future and hope they have for their boy -- and the potential for recovery from his severe burns. Youssif holds his sister's hand Friday. He's wearing a facial mask often used to help burn victims. It's the best birthday present the Iraqi family could ever have imagined for their boy: Youssif turns 6 next Friday. \"I was so happy I didn't know what to do with myself,\" his mother, Zainab, told CNN, a broad smile across her face. \"I didn't think the reaction would be this big.\" His father said he was on the roof of his house when CNN called him with the news about the outpouring of support for his son. \"We just want to thank everyone who has come forward,\" he said. \"We knew there was kindness out there.\" Like his wife, he couldn't stop smiling. He talked about how he tried in vain to get help for his son in Baghdad, leaving \"no stone unturned\" on a mission to help his boy. There were many trips to the Ministry of Health. He says he even put in a request to Iraq's parliament for help. The family eventually told CNN their story -- that Youssif was grabbed by masked men outside their home on January 15, doused in gasoline and set on fire. Simply by coming forward, his parents put themselves in incredible danger. No one has been arrested or held accountable in Youssif's case. Watch CNN's Arwa Damon describe 'truly phenomenal' outpouring » Shortly after Youssif's story aired Wednesday, the Children's Burn Foundation -- a nonprofit organization based in Sherman Oaks, California, that provides support for burn victims locally, nationally and internationally -- agreed to pay for the transportation for Youssif and his family to come to the United States and to set up a fund for donations. You can make a donation at the foundation's site by clicking here. There's a drop-down menu under the \"general donation\" area that is marked \"Youssif's fund.\" The foundation says it will cover all medical costs -- from surgeries for Youssif to housing costs to any social rehabilitation that might be needed for him. Surgeries will be performed by Dr. ", "Peter Grossman, a plastic surgeon with the affiliated Grossman Burn Center who is donating his services for Youssif's cause. Officials are still trying to get the appropriate visas for the family's travels. \"We are prepared to have them come here, set them up in a housing situation, provide support for them and begin treatment,\" said Barbara Friedman, executive director of the Children's Burn Foundation. \"We expect that the treatment will be from between six months to a year with many surgeries.\" She added, \"He will be getting the absolute best care that's available.\" Youssif's parents said they know it's going to be a lengthy and difficult process and that adjusting to their stay in America may not be easy. But none of that matters -- getting help for their boy is first and foremost. \"I will do anything for Youssif,\" his father said, pulling his son closer to him. \"Our child is everything.\" His mother tried to coax Youssif to talk to us on this day. But he didn't want to; his mother says he's shy outside of their home. The biggest obstacle now is getting the visas to leave, and the serious security risks they face every day and hour they remain in Iraq. But this family -- which saw the very worst in humanity on that January day -- has new hope in the world. That is partly due to the tens of thousands of CNN.com users who were so moved by the story and wanted to act. CNN Iraqi staff central to bringing this story together were also overwhelmed with" ]
2
[ 0, 0 ]
0
What is the estimated growth in wireless data usage in the U.S. for the next several years
ses today given the limited coverage and low 5G device penetration, but we don't think that will be the case for long. The 5G network revolution is under way and it's quite possible, perhaps even likely. The current growth projections for U.S. mobile data usage will prove to be conservative much like what we've seen in the past. The development of 5G-related low-latency applications and services, additional growth from enterprise accounts, and even fixed wireless applications in the home, could all drive usage much higher over time. We expect that the increased availability of spectrum in the marketplace, particularly on the mid-band side will help enable this usage growth going forward. Spectrum has always been the lifeblood of the wireless industry and given the capacity necessary to provide users a true 5G experience, it is more important today than ever before. Particularly significant, in our view, our mid-band spectrum assets, like 2.5 gig in the newly acquired C-band frequencies, as they provide our customers with a crucial middle ground between the attractive propagation characteristics of low-band spectrum and the deep capacity characteristics of higher band. We believe the results of the most recently completed C-band auction underscore the importance of this spectrum to our customers as they look to monetize the benefits of 5G. Importantly, as the carriers emphasized in their public comments after the auction, we expect this spectrum to be deployed quickly. The wireless industry is in a strong financial position and numerous steps have been taken by the carrier to, not only fund the upfront purchase price of the spectrum, but also to effectively deploy it. In fact, we are already seeing sizable increases in activity in our own services segment. And consistent with our long-term outlook expectations, we expect to see higher levels of gross new business in our property segment beginning later this year particularly in '22 and beyond. Part of this uptick in activity is in rural area, as stimulus funds from the government support smaller companies to effectively deploy wireless Internet services and as the major operators continue to fill in the white spaces in their network. The deployment of fixed wireless for households around the country using mid-band spectrum as our customers are planning could also provide further opportunities for us going forward. Taking all of these factors into account, we believe we have a highly attractive, long-term monetization opportunity in front of us. The carriers further identify their network and add more equipment to existing lease sites to support their incremental capacity needs. A significant portion of this growth is locked in to our existing contractual relationships. Other components of the growth may be more variable, either way, we expect to see higher levels of activity in the marketplace, accompanied by increasing wireless capex spend. On this point, analysts are projecting more than $35 billion in average annual capital spending from our customers over the next several years which would represent industry record. Put that in perspective, that average annual rate is more than double what the carriers spent back when 2G was actually deployed. While each of our customers have slightly different strategies to deploy 5G, we are confident that they will be successful in doing so. We also believe that our macro tower-oriented U.S. portfolio of over thousand sites is optimally positioned to benefit from these accelerating deployment. Macro sites continue to be, by far, the most cost-effective RF-efficient network engineering option and are also optimally located to help deliver coverage and capacity for hundreds of millions of people nationwide. As a result, we continue to believe that the vast majority of mid-band deployments in the U.S. for the foreseeable future will be on macro towers. As our network infrastructure was ideally suited for our customers' needs for 2G, 3G, and 4G, we have no reason to believe that 5G will be any different. While we do expect to be unique
[ "ses today given the limited coverage and low 5G device penetration, but we don't think that will be the case for long. The 5G network revolution is under way and it's quite possible, perhaps even likely.\nThe current growth projections for U.S. mobile data usage will prove to be conservative much like what we've seen in the past. The development of 5G-related low-latency applications and services, additional growth from enterprise accounts, and even fixed wireless applications in the home, could all drive usage much higher over time. We expect that the increased availability of spectrum in the marketplace, particularly on the mid-band side will help enable this usage growth going forward.\nSpectrum has always been the lifeblood of the wireless industry and given the capacity necessary to provide users a true 5G experience, it is more important today than ever before. Particularly significant, in our view, our mid-band spectrum assets, like 2.5 gig in the newly acquired C-band frequencies, as they provide our customers with a crucial middle ground between the attractive propagation characteristics of low-band spectrum and the deep capacity characteristics of higher band. We believe the results of the most recently completed C-band auction underscore the importance of this spectrum to our customers as they look to monetize the benefits of 5G. Importantly, as the carriers emphasized in their public comments after the auction, we expect this spectrum to be deployed quickly.\nThe wireless industry is in a strong financial position and numerous steps have been taken by the carrier to, not only fund the upfront purchase price of the spectrum, but also to effectively deploy it. In fact, we are already seeing sizable increases in activity in our own services segment. And consistent with our long-term outlook expectations, we expect to see higher levels of gross new business in our property segment beginning later this year particularly in '22 and beyond. Part of this uptick in activity is in rural area, as stimulus funds from the government support smaller companies to effectively deploy wireless Internet services and as the major operators continue to fill in the white spaces in their network.\nThe deployment of fixed wireless for households around the country using mid-band spectrum as our customers are planning could also provide further opportunities for us going forward. Taking all of these factors into account, we believe we have a highly attractive, long-term monetization opportunity in front of us. The carriers further identify their network and add more equipment to existing lease sites to support their incremental capacity needs. A significant portion of this growth is locked in to our existing contractual relationships.\n", "Other components of the growth may be more variable, either way, we expect to see higher levels of activity in the marketplace, accompanied by increasing wireless capex spend. On this point, analysts are projecting more than $35 billion in average annual capital spending from our customers over the next several years which would represent industry record. Put that in perspective, that average annual rate is more than double what the carriers spent back when 2G was actually deployed. While each of our customers have slightly different strategies to deploy 5G, we are confident that they will be successful in doing so.\nWe also believe that our macro tower-oriented U.S. portfolio of over thousand sites is optimally positioned to benefit from these accelerating deployment. Macro sites continue to be, by far, the most cost-effective RF-efficient network engineering option and are also optimally located to help deliver coverage and capacity for hundreds of millions of people nationwide. As a result, we continue to believe that the vast majority of mid-band deployments in the U.S.\nfor the foreseeable future will be on macro towers. As our network infrastructure was ideally suited for our customers' needs for 2G, 3G, and 4G, we have no reason to believe that 5G will be any different. While we do expect to be unique " ]
2
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1
Who is CNN Hero?
Atlanta (CNN) -- Jonathan Hanson and Katina Wright are determined to give their infant daughter a bright and stable future despite the cloud of uncertainty they face after years without steady work. Once successful real estate agents making six figures, Hanson and Wright are now living on the poverty line. "We made some good money," Hanson said. "But with new regulations in real estate and different laws and just the amount of foreclosures on the market, it literally took our business away." The last few years have been a downward spiral, says the Atlanta couple, who have been living off their savings. They've sold jewelry and cars, and now they're trying to sell their home to survive. Every day, they are faced with a tough decision. "You have to pick and choose what you want to do," Hanson said. "It's either eat that day or pay a bill." They're not alone. Millions of American families have slipped into what the U.S. Census Bureau defines as poor. About 46.2 million people are considered to be living in poverty, 2.6 million more than last year. "Those that are in dire need, they'll sell all their personal belongings to survive," said Sal Dimiceli, one of the top 10 CNN Heroes of 2011. Through his weekly newspaper column, Dimiceli hears from dozens of people each week who are facing hard times. And for decades, he has made every effort to help them get back on their feet. Through his nonprofit, The Time Is Now To Help, Dimiceli has provided about 500 people a year with food, rent, utilities and other necessities. "We get them back on a track (so) that ... their pride is given back to them," Dimiceli said this year. "They can catch up." There haven't been this many Americans living in poverty since 1993, according to the Census Bureau. More than 15% of the population is now considered poor. The rate is 22% for children, meaning at least one of every five U.S. kids is living in poverty. "If you qualify as being in poverty today, then you're really in deep poverty," said Mark Bergel, founder and executive director of A Wider Circle, a Maryland-based charity that provides furniture and other basic necessities to needy families. Bergel told CNN's Lisa Sylvester that the numbers used to define poverty today are extremely low and "based on an outdated formula from the '60s." The Census Bureau defines an individual as poor if they make less than $11,139 a year. The dollar amount rises for every member added to the household. For example, the average family of four is considered poor if they make less than $22,314. For a family of three like Hanson, Wright and their daughter, the threshold is just a little more than $17,000. "There's a lot of people suffering," said Karen Lee, a financial planner and author of several books, including "Simple Steps to Help People Get Unstuck Financially." Lee said it's important for people who've never faced poverty to keep a positive outlook and believe that things can get better. "I have seen people go from riches to rags to riches to rags," she said. "You can rebuild, and you can completely change careers and rebuild." That's what Hanson and Wright are doing. Hanson is betting on a new business he started: building security cages for air conditioners to prevent copper theft. Wright is teaching herself Web development. "I literally threw my Rolodex away, because it was all real-estate-related," she said. "It's no longer of any use to me. So being able to let go is going to be a person's biggest advantage."
[ "Atlanta (CNN) -- Jonathan Hanson and Katina Wright are determined to give their infant daughter a bright and stable future despite the cloud of uncertainty they face after years without steady work. Once successful real estate agents making six figures, Hanson and Wright are now living on the poverty line. \"We made some good money,\" Hanson said. \"But with new regulations in real estate and different laws and just the amount of foreclosures on the market, it literally took our business away.\" The last few years have been a downward spiral, says the Atlanta couple, who have been living off their savings. They've sold jewelry and cars, and now they're trying to sell their home to survive. Every day, they are faced with a tough decision. \"You have to pick and choose what you want to do,\" Hanson said. \"It's either eat that day or pay a bill.\" They're not alone. Millions of American families have slipped into what the U.S. Census Bureau defines as poor. About 46.2 million people are considered to be living in poverty, 2.6 million more than last year. \"Those that are in dire need, they'll sell all their personal belongings to survive,\" said Sal Dimiceli, one of the top 10 CNN Heroes of 2011. Through his weekly newspaper column, Dimiceli hears from dozens of people each week who are facing hard times. And for decades, he has made every effort to help them get back on their feet. Through his nonprofit, The Time Is Now To Help, Dimiceli has provided about 500 people a year with food, rent, utilities and other necessities. \"We get them back on a track (so) that ... their pride is given back to them,\" Dimiceli said this year. \"They can catch up.\" There haven't been this many Americans living in poverty since 1993, according to the Census Bureau. More than 15% of the population is now considered poor. The rate is 22% for children, meaning at least one of every five U.S. kids is living in poverty. \"If you qualify as being in poverty today, then you're really in deep poverty,\" said Mark Bergel, founder and executive director of A Wider Circle, a Maryland-based charity that provides furniture and other basic necessities to needy families. Bergel told CNN's Lisa Sylvester that the numbers used to define poverty today are extremely low and \"based on an outdated formula from the '60s.\" ", "The Census Bureau defines an individual as poor if they make less than $11,139 a year. The dollar amount rises for every member added to the household. For example, the average family of four is considered poor if they make less than $22,314. For a family of three like Hanson, Wright and their daughter, the threshold is just a little more than $17,000. \"There's a lot of people suffering,\" said Karen Lee, a financial planner and author of several books, including \"Simple Steps to Help People Get Unstuck Financially.\" Lee said it's important for people who've never faced poverty to keep a positive outlook and believe that things can get better. \"I have seen people go from riches to rags to riches to rags,\" she said. \"You can rebuild, and you can completely change careers and rebuild.\" That's what Hanson and Wright are doing. Hanson is betting on a new business he started: building security cages for air conditioners to prevent copper theft. Wright is teaching herself Web development. \"I literally threw my Rolodex away, because it was all real-estate-related,\" she said. \"It's no longer of any use to me. So being able to let go is going to be a person's biggest advantage.\"" ]
2
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1
What was the revenue generated by the company's integrated metrology business in the second quarter of 2020
es. Our plan to increase production capacity specifically in this period is started to accommodate the supply chain disruptions as well as customers demand for shorter lead times. As a result, we may experience some inventory volatility during the next few months yet without changing our long-term operational model. Our confidence in our new product portfolio and our ability to transform short-term pipelines into long-term growth engine dictate our operational goals currently independent of the current interim disruptions. Turning now to our business highlights in the second quarter of 2020. Our performance continued to rely on breadth and depth of our customer mix, which was driven by five major customers, including three foundry logic customers and two large memory providers. As reflected in our customer mix, we are very proud to achieve two new share wins with both our stand-alone and integrated tools in China. This mix of customers highlights the growing demand for our solution in both memory and logic, which is affected by growing demand for NAND devices, as well as for wide range of logic devices, starting from 40 nanometer all the way down to 3 nanometer. This outcome represent the overall positive momentum in the semiconductor industry that is dictated by the COVID-19 implication on the way we work, communicate, interact, stream data and rely on remote applications. In our service business, we are expecting meaningful growth this year, as we continue to offer proactive service packages to our customers to improve their install base productivity and metrology capabilities as well. Beyond revenue contribution from service contracts and time and materials services, our goal is to significantly increase the overall contribution from value-added services that are developed specifically for our customers, enabling them to better utilize the aging install base and to extend their life cycle. Finally, for this part, I would like to mention again, our strong operational model, which is the basis for our continuous growth and ability to invest in our development roadmap, even when facing uncertainties. The value of our products, along with Nova's unique offering and efficient manufacturing capabilities, support our profitability model and are reflected in our strong cash flow generation during the first six months of 2020, which was much higher compared with the same period last year. Embedded in our strategy, this cash position should accelerate our organic and non-organic plans specifically in this period. Let me now provide some highlights as for our product portfolio and roadmap development progress. The first highlight to mention is our announcement from July 27, about new additions to our optical CD integrated solutions. The need for better in-die and in-wafer metrology performance in the most advanced logic and memory nodes is converging with our legit leadership in the integrated metrology market and supporting our aggressive future roadmap. Our tight partnership with customers and our leadership position were both reflected strongly in the second quarter with record high revenues for integrated metrology across all front-end segments. The new announced platform, the i570 and ASTERA extends Nova's leadership in integrated metrology process control and targets the development and manufacturing of next-generation IC architecture. The Nova ASTERA platform is the first of its kind in the industry, providing stand-alone level performance in a compact form factor of integrated metrology. The new platform utilizes multi-channel measurement, providing the best solution in the market in term of accuracy, precision, tool-to-tool matching and extendibility. This platform is targeted to support the development of next-generation device technologies beyond 3 nanometer logic and 256 layers multi-deck 3D NAND nodes, and as such is expected to enter the market over the course of the coming years through R&D line first. The second new solution is Nova i570, single channel -- sorry, single channel SR platform, which is in the center
[ "es.\nOur plan to increase production capacity specifically in this period is started to accommodate the supply chain disruptions as well as customers demand for shorter lead times. As a result, we may experience some inventory volatility during the next few months yet without changing our long-term operational model. Our confidence in our new product portfolio and our ability to transform short-term pipelines into long-term growth engine dictate our operational goals currently independent of the current interim disruptions.\nTurning now to our business highlights in the second quarter of 2020. Our performance continued to rely on breadth and depth of our customer mix, which was driven by five major customers, including three foundry logic customers and two large memory providers. As reflected in our customer mix, we are very proud to achieve two new share wins with both our stand-alone and integrated tools in China. This mix of customers highlights the growing demand for our solution in both memory and logic, which is affected by growing demand for NAND devices, as well as for wide range of logic devices, starting from 40 nanometer all the way down to 3 nanometer.\nThis outcome represent the overall positive momentum in the semiconductor industry that is dictated by the COVID-19 implication on the way we work, communicate, interact, stream data and rely on remote applications. In our service business, we are expecting meaningful growth this year, as we continue to offer proactive service packages to our customers to improve their install base productivity and metrology capabilities as well.\nBeyond revenue contribution from service contracts and time and materials services, our goal is to significantly increase the overall contribution from value-added services that are developed specifically for our customers, enabling them to better utilize the aging install base and to extend their life cycle.\nFinally, for this part, I would like to mention again, our strong operational model, which is the basis for our continuous growth and ability to invest in our development roadmap, even when facing uncertainties. The value of our products, along with Nova's unique offering and efficient manufacturing capabilities, support our profitability model and are reflected in our strong cash flow generation during the first six months of 2020, which was much higher compared with the same period last year. Embedded in our strategy, this cash position should accelerate our organic and non-organic plans specifically in this period.\n", "Let me now provide some highlights as for our product portfolio and roadmap development progress. The first highlight to mention is our announcement from July 27, about new additions to our optical CD integrated solutions. The need for better in-die and in-wafer metrology performance in the most advanced logic and memory nodes is converging with our legit leadership in the integrated metrology market and supporting our aggressive future roadmap.\nOur tight partnership with customers and our leadership position were both reflected strongly in the second quarter with record high revenues for integrated metrology across all front-end segments. The new announced platform, the i570 and ASTERA extends Nova's leadership in integrated metrology process control and targets the development and manufacturing of next-generation IC architecture.\nThe Nova ASTERA platform is the first of its kind in the industry, providing stand-alone level performance in a compact form factor of integrated metrology. The new platform utilizes multi-channel measurement, providing the best solution in the market in term of accuracy, precision, tool-to-tool matching and extendibility.\nThis platform is targeted to support the development of next-generation device technologies beyond 3 nanometer logic and 256 layers multi-deck 3D NAND nodes, and as such is expected to enter the market over the course of the coming years through R&D line first. The second new solution is Nova i570, single channel -- sorry, single channel SR platform, which is in the center" ]
2
[ 0, 0 ]
0
What is the expected growth rate for the broad markets business in the March quarter
y what is the direction of content that you are seeing in these 5G smartphones? And I think you mentioned integration. Is it kind of a winner-take-all in some of these initial wins or are you still kind of maintaining your share in the specific components that you have expertise in? Liam K. Griffin -- President and Chief Executive Officer Sure. Well, the way we're seeing it right now we believe we're absolutely gaining share in 5G and the rollout of these new highly complex phones are exactly what we want to see. We're continuing to gain share with our Sky5 platform. We're doing the very difficult things that we've been talking about in prior calls, really crafting and creating these wonderful devices that are going into 5G-enabled phones. We're seeing that across a number of customers, great position in China with a number of leading players, position at Samsung and then also with some of the larger players in the US that haven't even launched their 5G phone yet. So there's a lot of positive momentum there and we feel very -- very upbeat about where we're going in the second half. Vivek Arya -- Bank of America Merrill Lynch -- Analyst Got it. And my follow-up is kind of a strategic question. So you have been developing your internal ball capability for some time, but one of your competitors put up their RF assets for sale. I'm curious if those assets get sold to a potential competitor or a customer, what's the impact or are those assets something that you might be interested in taking a look at? Just how should we think about kind of the impact of this potential consolidation on Skyworks? Liam K. Griffin -- President and Chief Executive Officer Sure, sure. Appreciate the question. Well, we really can't get into any specifics around M&A. We're well aware of the opportunity that you just suggested, but at the same time we are really happy with what we're doing in our organic business and we see a tremendous opportunity there with 5G now just starting and the momentum in our demand really accelerating. So we feel good about it, but at the same time we have to look at M&A opportunities and I'm pleased to say that we have the powder and the cash flow to do deals when deals are necessary. But at this point, we really just can't comment on anything specifically. Operator And your next question comes from the line of Timothy Arcuri from UBS. Your line is open. Timothy Arcuri -- UBS -- Analyst Thanks so much. Kris, can you give us the splits for both businesses for December and how you think about it for the guidance for March? Kris Sennesael -- Senior Vice President and Chief Financial Officer Yeah. So our broad markets business in the December quarter was approximately 27% of total revenue. That is in line with what we saw last year. Keep in mind that December quarter is typically a very strong mobile quarter with obviously a lot of business with our large customer and then the ramp of 5G phones. So mobile was 73% of total revenue. Looking forward into the March quarter, that is where we see a little bit of a flip, right. This is typically a stronger broad markets quarter. We do expect some mid-single digit sequential growth in our broad markets business and we will see some mid single to -- yeah, mid single year-over-year growth in broad markets in the March quarter and then of course even further stronger growth in the second half of 2020. Timothy Arcuri -- UBS -- Analyst Great, thanks for that. And can you just talk about Huawei and how it ended up playing out? I think you expected about $10 million. And my guess is that it was maybe a little bit better than that. But how did it play out and sort of how do you think -- not just about them as a customer, but how do you think about how the export restrictions might change and how that is impacting what that customer and what's your other Chinese customers are pulling? How hard they might be pulling? Are they perhaps double ordering? Thanks. Liam K. Griffin -- President and Chief Executive Officer Sure. Well, obviously, it's an evolving situation and we have a really dynamic b
[ "y what is the direction of content that you are seeing in these 5G smartphones? And I think you mentioned integration. Is it kind of a winner-take-all in some of these initial wins or are you still kind of maintaining your share in the specific components that you have expertise in?\nLiam K. Griffin -- President and Chief Executive Officer\nSure. Well, the way we're seeing it right now we believe we're absolutely gaining share in 5G and the rollout of these new highly complex phones are exactly what we want to see. We're continuing to gain share with our Sky5 platform. We're doing the very difficult things that we've been talking about in prior calls, really crafting and creating these wonderful devices that are going into 5G-enabled phones. We're seeing that across a number of customers, great position in China with a number of leading players, position at Samsung and then also with some of the larger players in the US that haven't even launched their 5G phone yet. So there's a lot of positive momentum there and we feel very -- very upbeat about where we're going in the second half.\nVivek Arya -- Bank of America Merrill Lynch -- Analyst\nGot it. And my follow-up is kind of a strategic question. So you have been developing your internal ball capability for some time, but one of your competitors put up their RF assets for sale. I'm curious if those assets get sold to a potential competitor or a customer, what's the impact or are those assets something that you might be interested in taking a look at? Just how should we think about kind of the impact of this potential consolidation on Skyworks?\nLiam K. Griffin -- President and Chief Executive Officer\nSure, sure. Appreciate the question. Well, we really can't get into any specifics around M&A. We're well aware of the opportunity that you just suggested, but at the same time we are really happy with what we're doing in our organic business and we see a tremendous opportunity there with 5G now just starting and the momentum in our demand really accelerating. So we feel good about it, but at the same time we have to look at M&A opportunities and I'm pleased to say that we have the powder and the cash flow to do deals when deals are necessary. But at this point, we really just can't comment on anything specifically.\nOperator\nAnd your next question comes from the line of Timothy Arcuri from UBS. Your line is open.\n", "Timothy Arcuri -- UBS -- Analyst\nThanks so much. Kris, can you give us the splits for both businesses for December and how you think about it for the guidance for March?\nKris Sennesael -- Senior Vice President and Chief Financial Officer\nYeah. So our broad markets business in the December quarter was approximately 27% of total revenue. That is in line with what we saw last year. Keep in mind that December quarter is typically a very strong mobile quarter with obviously a lot of business with our large customer and then the ramp of 5G phones. So mobile was 73% of total revenue.\nLooking forward into the March quarter, that is where we see a little bit of a flip, right. This is typically a stronger broad markets quarter. We do expect some mid-single digit sequential growth in our broad markets business and we will see some mid single to -- yeah, mid single year-over-year growth in broad markets in the March quarter and then of course even further stronger growth in the second half of 2020.\nTimothy Arcuri -- UBS -- Analyst\nGreat, thanks for that. And can you just talk about Huawei and how it ended up playing out? I think you expected about $10 million. And my guess is that it was maybe a little bit better than that. But how did it play out and sort of how do you think -- not just about them as a customer, but how do you think about how the export restrictions might change and how that is impacting what that customer and what's your other Chinese customers are pulling? How hard they might be pulling? Are they perhaps double ordering? Thanks.\nLiam K. Griffin -- President and Chief Executive Officer\nSure. Well, obviously, it's an evolving situation and we have a really dynamic b" ]
2
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1
What is the expected revenue growth rate for PING in 2021
rowth. This is the second consecutive quarter you have had over 30% growth on a year-over-year basis. So can you just talk about how your products have evolved and what might be driving that inflection and growth? Andre Durand -- Chief Executive Officer Andy, this is Andre. Thanks for the question. Our product platform, the PingOne Cloud Platform is reaching a level of maturity. Now it's a combination of our Advanced Services coming online Q4 of last year, combined with several new services, some acquired some built organically, like Risk, Fraud, Verification, and those services coming online line as well. So it -- the story here really is the maturation of the Ping Cloud Platform being offered to existing customers, as well as new customers. Andrew Nowinski -- Wells Fargo -- Analyst Okay, great. And then, I want to ask about some of the recent acquisitions, including SecuredTouch in June and then now Singular Key here in September. How do you think those acquisitions fit into this product evolution, where your platforms headed to them? How should we think about the inorganic contribution from those acquisitions in 2022? Andre Durand -- Chief Executive Officer We have always had a vision that identity needs to be intelligent, informed by risk and fraud signals to make better authentication and authorization decisions. So SecuredTouch is consistent with that. We had introduced PingOne Risk, which was a risk service for our workforce use case earlier in the year. SecuredTouch completes that by offering risk and fraud signals now for the customer and consumer use case. So the entire notion that we are building a virtuous cycle, where risk and fraud signals inform the identity control plane how to behave. It's also instrumental toward our password list vision, there is no way to achieve a password list experience without leveraging the implicit signals that are available to us, such that if risk is low and trust is high, we just let the user in, so to speak. So that acquisition was part of our strategy around an intelligent identity control plane. The Singular or this -- yes, the Singular Key acquisition is a little bit different. If you step back identity is an integration game. We are trying to connect everyone to everything, speed of integration, time to value and the flexibility with which companies can actually integrate, not just the basic, but the more advanced identity technologies is critical to all of these large enterprises. Singular Key allows us to achieve a 10x on the time to value and the speed to integration. And it does so because much of the historical coding, as we say, the point-to-point hard coding has all been done in now Singular Key. So it allows the business to design user experiences without coding. So identity is an integration game, time to value, speed to integrate really matters, Singular Key allows us to orchestrate all of these identity experiences without coding. Andrew Nowinski -- Wells Fargo -- Analyst That's great. Any color on how we should think about their contribution in 2022 or is still too early? Raj Dani -- Chief Financial Officer Yes. Hey Andy, this is Raj. It is a little early. We are just a couple of weeks and a couple months into the -- into these integrations. So our first order of business right now is to integrate them with our own SaaS platform and continue to build pipe. What I will tell you is that, there's a ton of excitement from our customers, from our sales force, and just generally in the marketplace around these solutions; so just watch the space. Andrew Nowinski -- Wells Fargo -- Analyst Sounds good. Thanks very much. Andre Durand -- Chief Executive Officer Thanks, Andy. Raj Dani -- Chief Financial Officer Thanks. Operator We have your next question from Adam Tindle with Raymond James. Your line is open. Adam Tindle -- Raymond James -- Analyst Okay, thanks. Good afternoon. I wanted to start on ARR. Last year you had just over $250 million and based on guidance this year, it's going to be just over $300 million. So I look at the new ARR that you are adding about $50
[ "rowth. This is the second consecutive quarter you have had over 30% growth on a year-over-year basis. So can you just talk about how your products have evolved and what might be driving that inflection and growth?\nAndre Durand -- Chief Executive Officer\nAndy, this is Andre. Thanks for the question. Our product platform, the PingOne Cloud Platform is reaching a level of maturity. Now it's a combination of our Advanced Services coming online Q4 of last year, combined with several new services, some acquired some built organically, like Risk, Fraud, Verification, and those services coming online line as well. So it -- the story here really is the maturation of the Ping Cloud Platform being offered to existing customers, as well as new customers.\nAndrew Nowinski -- Wells Fargo -- Analyst\nOkay, great. And then, I want to ask about some of the recent acquisitions, including SecuredTouch in June and then now Singular Key here in September. How do you think those acquisitions fit into this product evolution, where your platforms headed to them? How should we think about the inorganic contribution from those acquisitions in 2022?\nAndre Durand -- Chief Executive Officer\nWe have always had a vision that identity needs to be intelligent, informed by risk and fraud signals to make better authentication and authorization decisions. So SecuredTouch is consistent with that. We had introduced PingOne Risk, which was a risk service for our workforce use case earlier in the year. SecuredTouch completes that by offering risk and fraud signals now for the customer and consumer use case. So the entire notion that we are building a virtuous cycle, where risk and fraud signals inform the identity control plane how to behave. It's also instrumental toward our password list vision, there is no way to achieve a password list experience without leveraging the implicit signals that are available to us, such that if risk is low and trust is high, we just let the user in, so to speak. So that acquisition was part of our strategy around an intelligent identity control plane.\n", "The Singular or this -- yes, the Singular Key acquisition is a little bit different. If you step back identity is an integration game. We are trying to connect everyone to everything, speed of integration, time to value and the flexibility with which companies can actually integrate, not just the basic, but the more advanced identity technologies is critical to all of these large enterprises. Singular Key allows us to achieve a 10x on the time to value and the speed to integration. And it does so because much of the historical coding, as we say, the point-to-point hard coding has all been done in now Singular Key. So it allows the business to design user experiences without coding. So identity is an integration game, time to value, speed to integrate really matters, Singular Key allows us to orchestrate all of these identity experiences without coding.\nAndrew Nowinski -- Wells Fargo -- Analyst\nThat's great. Any color on how we should think about their contribution in 2022 or is still too early?\nRaj Dani -- Chief Financial Officer\nYes. Hey Andy, this is Raj. It is a little early. We are just a couple of weeks and a couple months into the -- into these integrations. So our first order of business right now is to integrate them with our own SaaS platform and continue to build pipe. What I will tell you is that, there's a ton of excitement from our customers, from our sales force, and just generally in the marketplace around these solutions; so just watch the space.\nAndrew Nowinski -- Wells Fargo -- Analyst\nSounds good. Thanks very much.\nAndre Durand -- Chief Executive Officer\nThanks, Andy.\nRaj Dani -- Chief Financial Officer\nThanks.\nOperator\nWe have your next question from Adam Tindle with Raymond James. Your line is open.\nAdam Tindle -- Raymond James -- Analyst\nOkay, thanks. Good afternoon. I wanted to start on ARR. Last year you had just over $250 million and based on guidance this year, it's going to be just over $300 million. So I look at the new ARR that you are adding about $50 " ]
2
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0
What is the estimated growth rate for the process diagnostics and control business in calendar 2021
de-long trends that will underpin secular industry growth. As I've said before, digital transformation is built on silicon and broadens the drivers for semiconductor innovation. Demand for semiconductors is no longer about one or two killer applications, but rather an expansive, structural shift in the economy toward digitization and automation. Smart and connected devices at the edge not only consume more silicon. They are driving exponential growth in machine-generated data. To make sense and create value from the vast volumes of data available, new AI computing approaches are needed fueling further demand for current and next-generation semiconductors. While global consumption of silicon is accelerating, adoption rates of new technology vary considerably by region. As we showed at our investor meeting, we estimate that by 2025, China will have only reached the same levels of silicon spend per capita the U.S. saw in 2015. And India trails China by another eight to 10 years. Since the impact of digital transformation is so wide-reaching, national governments are increasingly recognizing the strategic importance of semiconductors. As government incentives become available in the U.S., Asia, and Europe, they can provide multi-year support as the industry moves from lean and just-in-time supply chains to more resilient, flexible, and secure approaches, including regionally distributed capacity. However, putting the right manufacturing infrastructure in place is only one piece of the puzzle. Investment in innovation infrastructure, to lead in the development and commercialization of next-generation technologies, is even more critical to winning the future. Early access to superior semiconductor technologies, or what I refer to as winning the PPACt race, will determine the countries and companies that thrive and those that won't. At Applied, we have a strong point of view that the industry's future will not be like the past, and we have aligned our strategy and investments accordingly. Our strategy has three pillars. First and foremost, we are focused on being the PPACt enablement company to provide the foundation for customers' power, performance, area, cost and time-to-market roadmaps. We have the broadest and most enabling portfolio of process technologies that we can co-optimize and combine in unique and highly enabling ways. Second, we are shifting more of our business to subscriptions as we believe this model provides significant benefits to customers and for us. We have already converted a meaningful portion of our installed base business to recurring revenues and we are starting to monetize new products and services using subscription approaches. And, third, we continue to optimize our portfolio of businesses that serve adjacent markets, including display, to drive profitable growth and higher free cash flows. This strategy is yielding results and 2021 is shaping up to be a strong year of outperformance for Applied. Starting with our unit process tools, we are seeing a very strong demand for our leadership products. For example, taking the midpoint of our fourth-quarter guidance, both our epi and thermal businesses are on track to grow more than 70% this fiscal year, while CMP will grow more than 60% and implant more than 50%. We're also seeing outperformance in our growth areas, especially process diagnostics and control, where we expect to grow more than 60% in calendar 2021. On top of this, we have strong momentum with our co-optimized and integrated solutions. By revenue, about 70% of the semiconductor products we sell today have already been co-optimized at some level. Co-optimization allows us to see and solve higher-value problems for customers, speed up technology transition to high-volume manufacturing, and make our solutions stickier. Beyond co-optimization, our integrated materials solutions called IMS combine multiple processes with customized metrology and sensors in a single system typically under vacuum. Our latest IMS product, that lowers interconnect resistance by 50% in advanced foundry-logic, direc
[ "de-long trends that will underpin secular industry growth.\nAs I've said before, digital transformation is built on silicon and broadens the drivers for semiconductor innovation. Demand for semiconductors is no longer about one or two killer applications, but rather an expansive, structural shift in the economy toward digitization and automation. Smart and connected devices at the edge not only consume more silicon. They are driving exponential growth in machine-generated data.\nTo make sense and create value from the vast volumes of data available, new AI computing approaches are needed fueling further demand for current and next-generation semiconductors. While global consumption of silicon is accelerating, adoption rates of new technology vary considerably by region. As we showed at our investor meeting, we estimate that by 2025, China will have only reached the same levels of silicon spend per capita the U.S. saw in 2015.\nAnd India trails China by another eight to 10 years. Since the impact of digital transformation is so wide-reaching, national governments are increasingly recognizing the strategic importance of semiconductors. As government incentives become available in the U.S., Asia, and Europe, they can provide multi-year support as the industry moves from lean and just-in-time supply chains to more resilient, flexible, and secure approaches, including regionally distributed capacity. However, putting the right manufacturing infrastructure in place is only one piece of the puzzle.\nInvestment in innovation infrastructure, to lead in the development and commercialization of next-generation technologies, is even more critical to winning the future. Early access to superior semiconductor technologies, or what I refer to as winning the PPACt race, will determine the countries and companies that thrive and those that won't. At Applied, we have a strong point of view that the industry's future will not be like the past, and we have aligned our strategy and investments accordingly. Our strategy has three pillars.\nFirst and foremost, we are focused on being the PPACt enablement company to provide the foundation for customers' power, performance, area, cost and time-to-market roadmaps. We have the broadest and most enabling portfolio of process technologies that we can co-optimize and combine in unique and highly enabling ways. Second, we are shifting more of our business to subscriptions as we believe this model provides significant benefits to customers and for us. We have already converted a meaningful portion of our installed base business to recurring revenues and we are starting to monetize new products and services using subscription approaches.\n", "And, third, we continue to optimize our portfolio of businesses that serve adjacent markets, including display, to drive profitable growth and higher free cash flows. This strategy is yielding results and 2021 is shaping up to be a strong year of outperformance for Applied. Starting with our unit process tools, we are seeing a very strong demand for our leadership products. For example, taking the midpoint of our fourth-quarter guidance, both our epi and thermal businesses are on track to grow more than 70% this fiscal year, while CMP will grow more than 60% and implant more than 50%.\nWe're also seeing outperformance in our growth areas, especially process diagnostics and control, where we expect to grow more than 60% in calendar 2021. On top of this, we have strong momentum with our co-optimized and integrated solutions. By revenue, about 70% of the semiconductor products we sell today have already been co-optimized at some level. Co-optimization allows us to see and solve higher-value problems for customers, speed up technology transition to high-volume manufacturing, and make our solutions stickier.\nBeyond co-optimization, our integrated materials solutions called IMS combine multiple processes with customized metrology and sensors in a single system typically under vacuum. Our latest IMS product, that lowers interconnect resistance by 50% in advanced foundry-logic, direc" ]
2
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0.63093
What is the expected growth rate of James' business in the longer term, given the adoption of massive MIMO, 5G, GaN, WiFi 6, and IoT in different markets, and the addition of power management
G opportunities are coming in maybe a little bit sooner than expected as you talk about the December. But I'm trying to get a feel for how you think the RF TAM should grow next year and the shape of the ramp? Our assumption is, it'll be somewhat second-half weighted. But -- and then within that how we should think about your business especially how it relates to the design wins you have, you talked about four large China makers, if you can help level set the market context, as well as the shape of your business in 5G. Eric Creviston -- President, Mobile Products Group Sure. Thanks, Bill. Yes, we have been saying since our Analyst Day in 2018 we expected about $1 billion increase in the RF TAM in calendar '20 due to 5G ramping. And it's certainly looking like it's going to be conservatively greater than that much closer to $2 billion probably. And it's equally weighted from, at least, our view currently between more units than we had originally expected and more content per unit. So we got both factors affecting it pretty significantly. And the higher units are really driven by this really rapid adoption and switch over of the handsets in China. It's clear from what we're seeing there that the 4G handsets that are going to be released are going to be dropping significantly in the very near term. Whether there's coverage or not, consumers are going to be buying 5G handsets, knowing that the network will be available at some time during that time they own that phone. So they're getting a real jump on it. Obviously, Samsung as well as is transitioning their portfolio rapidly to include 5G content. So that increases the number of 5G handsets well above the $200 million or so that we had originally modeled a couple years ago. But then in addition to that as I said, it looks like across the board, all the 5G handsets so far without any -- going the other way, they're all going to fully integrated 4G systems inside them. And part of that is just to get the size. I mean these are really cramming an awful lot of functionality into these handsets, so they need the integration for that, but it also helps them get to market faster and improves performance. So that integration turned for all the base content and 4G also has content. And then the last adder is the requirements from China Mobile, and so forth for band coverage. And so having n79 in every phone, for example, the requirements for dual signaling, and so forth, these are now being put in every single 5G handsets. So that's coming together to increase the total TAM in CY '20 well above what we had modeled previously. Bill Peterson -- J.P. Morgan -- Analyst OK. The -- moving to James, James' business has, obviously, seen really rapid growth that's accelerated here in the last few quarters, including the guide. I mean you talked over the potential return to year-on-year growth, but I guess, with Huawei significantly lower, what -- do you have an of sort of -- you mentioned you're broadening out your wireless infrastructure coverage customers, but how should we think the growth of that business as we look in the next year with March maybe returning to growth and then progressing to the next year, given that we have WiFi 6, defense and then additional customers for the infrastructure? James Klein -- President, Infrastructure and Defense Products Group Bill, this is James. Thanks for the question. The restrictions of Huawei have definitely limited our ability to grow in the near term. However, as Mark said, we hope to return to year-over-year growth in Q4. We're going to take a good step in that direction in Q3 with double-digit quarter-over-quarter growth. Longer term, we remain really positive about the underlying trends on the markets we serve, and that includes the adoption of massive MIMO and 5G, the adoption of GaN in several different markets, and the WiFi 6 coming on and IoT in both automotive and in the connected home. And the addition of power management has also improved our long-term outlook. And in fact, that business grew quarter over quarter about 40% and is very m
[ "G opportunities are coming in maybe a little bit sooner than expected as you talk about the December. But I'm trying to get a feel for how you think the RF TAM should grow next year and the shape of the ramp? Our assumption is, it'll be somewhat second-half weighted. But -- and then within that how we should think about your business especially how it relates to the design wins you have, you talked about four large China makers, if you can help level set the market context, as well as the shape of your business in 5G.\nEric Creviston -- President, Mobile Products Group\nSure. Thanks, Bill. Yes, we have been saying since our Analyst Day in 2018 we expected about $1 billion increase in the RF TAM in calendar '20 due to 5G ramping. And it's certainly looking like it's going to be conservatively greater than that much closer to $2 billion probably.\nAnd it's equally weighted from, at least, our view currently between more units than we had originally expected and more content per unit. So we got both factors affecting it pretty significantly. And the higher units are really driven by this really rapid adoption and switch over of the handsets in China. It's clear from what we're seeing there that the 4G handsets that are going to be released are going to be dropping significantly in the very near term.\nWhether there's coverage or not, consumers are going to be buying 5G handsets, knowing that the network will be available at some time during that time they own that phone. So they're getting a real jump on it. Obviously, Samsung as well as is transitioning their portfolio rapidly to include 5G content. So that increases the number of 5G handsets well above the $200 million or so that we had originally modeled a couple years ago.\nBut then in addition to that as I said, it looks like across the board, all the 5G handsets so far without any -- going the other way, they're all going to fully integrated 4G systems inside them. And part of that is just to get the size. I mean these are really cramming an awful lot of functionality into these handsets, so they need the integration for that, but it also helps them get to market faster and improves performance. So that integration turned for all the base content and 4G also has content.\n", "And then the last adder is the requirements from China Mobile, and so forth for band coverage. And so having n79 in every phone, for example, the requirements for dual signaling, and so forth, these are now being put in every single 5G handsets. So that's coming together to increase the total TAM in CY '20 well above what we had modeled previously.\nBill Peterson -- J.P. Morgan -- Analyst\nOK. The -- moving to James, James' business has, obviously, seen really rapid growth that's accelerated here in the last few quarters, including the guide. I mean you talked over the potential return to year-on-year growth, but I guess, with Huawei significantly lower, what -- do you have an of sort of -- you mentioned you're broadening out your wireless infrastructure coverage customers, but how should we think the growth of that business as we look in the next year with March maybe returning to growth and then progressing to the next year, given that we have WiFi 6, defense and then additional customers for the infrastructure?\nJames Klein -- President, Infrastructure and Defense Products Group\nBill, this is James. Thanks for the question. The restrictions of Huawei have definitely limited our ability to grow in the near term. However, as Mark said, we hope to return to year-over-year growth in Q4.\nWe're going to take a good step in that direction in Q3 with double-digit quarter-over-quarter growth. Longer term, we remain really positive about the underlying trends on the markets we serve, and that includes the adoption of massive MIMO and 5G, the adoption of GaN in several different markets, and the WiFi 6 coming on and IoT in both automotive and in the connected home. And the addition of power management has also improved our long-term outlook. And in fact, that business grew quarter over quarter about 40% and is very m" ]
2
[ 1, 1 ]
1
what did atf say
Walking into the Colur Tyme Tattoo Parlor is a lot like walking into a head shop. One wall is lined with gang monikers and symbols, the other with bongs for smoking marijuana and other drugs -- one even shaped like a skull. The Colur Tyme Tattoo Parlor was set up by authorities to get at the heart of gang members. Only this head shop was a setup. It was a police front in a sting operation to bust gangs in this Georgia river city that most people associate with the Masters Tournament -- not violent thugs with high-powered weapons. Authorities said some guns sold to the shop were used in crimes just hours earlier. The tattoo parlor was the brainchild of Richmond County Sheriff Ron Strength, who wanted to snuff out gangs carrying out violent crimes in his east Georgia community. The idea was to create a place where the gang members would feel right at home, said sheriff's Lt. Scott Peebles. And that they did. "We put the idea in their heads that there's no way these guys are in law enforcement," he said. On Wednesday, more than 100 sheriff's officers, state investigators and agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives carried out a major bust after an 18-month joint investigation into the gang activity. Watch cops set up tattoo parlor » Sixty-eight suspects were arrested on charges ranging from trafficking of illegal weapons to serious drug offenses. Authorities seized more than 300 weapons, including high-powered assault rifles. Rich Marianos, a special agent with the ATF, said such gang activity is spreading across the nation, with small-town gangs increasing their ties with gangs in major cities. For instance, New York gangs have begun moving as far south as the Carolinas, where they set up operations to buy and sell guns and drugs, he said. Chicago gang activity extends more than 60 miles into the Illinois city's suburbs for narcotics and weapons trading. In fact, Marianos said the ATF has begun seeing some Chicago gangs establishing a "pipeline" for illegal arms more than 500 miles away in Mississippi. "It's not just an urban problem," Marianos said. "We're seeing it all over the country." The ATF, he said, has seen one of the most dramatic increases in gang activity in the last three years and is cracking down. "We want to look at a way to go after these offenders and prevent it before it happens," he said. "[We're] making the community safer by disarming the bad guys -- not taking guns away from the American citizen, but going after the people who shouldn't have them in the first place." That's why setting up a tattoo parlor in Augusta was key. Strength, the Richmond County sheriff, said he remembers when the worst crimes in these parts were lawn mower thefts and vandals pushing over birdbaths. But those days are long gone, with gangs such as the Georgia Deadly Boys and Fairington Gangster Thugs causing mayhem on a regular basis. "In the past 2 1/2 years, we've noticed some major changes," he said, "with the type of criminal offenses they were involved in." So he devised the undercover business. The Colur Tyme Tattoo Parlor on Tobacco Road was set up on the outskirts of Augusta. It's a location not heavily patrolled by police, but staffed 100 percent by undercover agents. Business was slow at first, but then things took off. Gang members soon began dropping in to sell guns, drugs and even stolen cars, authorities said. Every transaction was recorded by surveillance cameras around the store. Soon the shop had so much business the Richmond County Sheriff's Office had to call in reinforcements from the ATF. Four federal agents helped the sheriff's deputies man the counters; others worked behind the scenes. Vanessa McLemore, ATF special agent in charge, said the teams had to coordinate their behaviors so it seemed like they fit in the store. "They spent a lot of time
[ "Walking into the Colur Tyme Tattoo Parlor is a lot like walking into a head shop. One wall is lined with gang monikers and symbols, the other with bongs for smoking marijuana and other drugs -- one even shaped like a skull. The Colur Tyme Tattoo Parlor was set up by authorities to get at the heart of gang members. Only this head shop was a setup. It was a police front in a sting operation to bust gangs in this Georgia river city that most people associate with the Masters Tournament -- not violent thugs with high-powered weapons. Authorities said some guns sold to the shop were used in crimes just hours earlier. The tattoo parlor was the brainchild of Richmond County Sheriff Ron Strength, who wanted to snuff out gangs carrying out violent crimes in his east Georgia community. The idea was to create a place where the gang members would feel right at home, said sheriff's Lt. Scott Peebles. And that they did. \"We put the idea in their heads that there's no way these guys are in law enforcement,\" he said. On Wednesday, more than 100 sheriff's officers, state investigators and agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives carried out a major bust after an 18-month joint investigation into the gang activity. Watch cops set up tattoo parlor » Sixty-eight suspects were arrested on charges ranging from trafficking of illegal weapons to serious drug offenses. Authorities seized more than 300 weapons, including high-powered assault rifles. Rich Marianos, a special agent with the ATF, said such gang activity is spreading across the nation, with small-town gangs increasing their ties with gangs in major cities. For instance, New York gangs have begun moving as far south as the Carolinas, where they set up operations to buy and sell guns and drugs, he said. Chicago gang activity extends more than 60 miles into the Illinois city's suburbs for narcotics and weapons trading. In fact, Marianos said the ATF has begun seeing some Chicago gangs establishing a \"pipeline\" for illegal arms more than 500 miles away in Mississippi. \"It's not just an urban problem,\" Marianos said. \"We're seeing it all over the country.\" The ATF, he said, has seen one of the most dramatic increases in gang activity in the last three years and is cracking down. \"We want to look at a way to go after these offenders and prevent it before it happens,\" he said. ", "\"[We're] making the community safer by disarming the bad guys -- not taking guns away from the American citizen, but going after the people who shouldn't have them in the first place.\" That's why setting up a tattoo parlor in Augusta was key. Strength, the Richmond County sheriff, said he remembers when the worst crimes in these parts were lawn mower thefts and vandals pushing over birdbaths. But those days are long gone, with gangs such as the Georgia Deadly Boys and Fairington Gangster Thugs causing mayhem on a regular basis. \"In the past 2 1/2 years, we've noticed some major changes,\" he said, \"with the type of criminal offenses they were involved in.\" So he devised the undercover business. The Colur Tyme Tattoo Parlor on Tobacco Road was set up on the outskirts of Augusta. It's a location not heavily patrolled by police, but staffed 100 percent by undercover agents. Business was slow at first, but then things took off. Gang members soon began dropping in to sell guns, drugs and even stolen cars, authorities said. Every transaction was recorded by surveillance cameras around the store. Soon the shop had so much business the Richmond County Sheriff's Office had to call in reinforcements from the ATF. Four federal agents helped the sheriff's deputies man the counters; others worked behind the scenes. Vanessa McLemore, ATF special agent in charge, said the teams had to coordinate their behaviors so it seemed like they fit in the store. \"They spent a lot of time" ]
2
[ 0, 0 ]
0
What is the company's target for cash flow breakeven
aphy for you. Can you give us some color there on what you're seeing in terms of the order book and pull through? And how do you see those trends evolving post-NMPA approval here? Christian Henry -- President and Chief Executive Officer Yeah. I think it's too early to say post-approval. I think we'll wait and see and talk to Barry. That's pretty fresh news. But I think in China, we're seeing the business continue to be strong. Hopefully, it continues to be decent. Susan Kim -- Chief Financial Officer It still continues to be strong, improving since COVID every quarter. Christian Henry -- President and Chief Executive Officer Yeah. It continues to improve. And so I think we're really bullish on China. I think there's macro factors that are completely outside of our control between the U.S. and China that maybe I start to lose sleep over a little bit, but they're completely out of our control. But based on what we control and what we can see and what customers are actually doing with our technology, we're quite encouraged, and we think the opportunity is still in front of us, quite frankly. Tejas Savant -- Morgan Stanley -- Analyst Got it. Really helpful. Thanks, guys. Christian Henry -- President and Chief Executive Officer Yup. Operator And for the next question, Dan Brennan of Cowen. Please go ahead, sir. Dan Brennan -- Cowen and Company -- Analyst Great. Thanks. Thanks for taking the question. Hey, Christian. Hey, Susan. Maybe just, Christian, you alluded to it a couple of times during the call, but just on the funnel itself, I don't know in the past kind of look on a clarity you provide on it. But just could you give a sense of what the funnel looks like today maybe like customer segment and kind of how it's evolved over the course of 2021? Christian Henry -- President and Chief Executive Officer Yeah. First of all, Dan, congrats on your new role. We're going to miss Doug, but it's good to have you on the ball club. With respect to the funnel itself, let's state that we haven't given a lot of color, and I don't think we will give a lot of color because those processes internally are evolving and are being built and improving all the time. We've spent a ton of time this year defining the funnel more, creating a common language from which the sales force can communicate with each other and with executives so that we get much better about forecast accuracy, so that we can stand up in front of you and give you what we hope to be pretty reliable projections. One of the things we talked about for the first time, kind of some of the segment, market areas that we're focused on and our relative revenues. The reality is that the company didn't have any of those capabilities, and we had to come in and build that. And so at this time, I really -- it's probably not appropriate for me to give you more color on the specific funnel other than the general comment that often use. This -- the increasing commercial footprint is directly impacting the quality and the size of the funnel, which does give us generally better visibility into the future than perhaps we've had in the past. But at any given quarter, since instruments are still such a significant part of our quarterly revenues and they're quite binary because they're large dollar numbers, they could have an impact on any given quarter. But if you look out over time, we're very encouraged what we see in the funnel that there is very strong demand for these products and platforms. This will help us grow. As we grow, we will be able to improve our gross margins. As we improve our gross margins, we'll be able to get better leverage across the business and make that push toward ultimately getting to cash flow breakeven and better. Dan Brennan -- Cowen and Company -- Analyst Great. No, that was helpful. Thanks, Christian. Maybe just a high-level one on kind of academic funding. Obviously, it seems to be pretty robust from the headline figures and entering '22. Is that something -- clearly you've got a lot of growth levers at your disposal, which you've discussed, but is that something
[ "aphy for you. Can you give us some color there on what you're seeing in terms of the order book and pull through? And how do you see those trends evolving post-NMPA approval here?\nChristian Henry -- President and Chief Executive Officer\nYeah. I think it's too early to say post-approval. I think we'll wait and see and talk to Barry. That's pretty fresh news.\nBut I think in China, we're seeing the business continue to be strong. Hopefully, it continues to be decent.\nSusan Kim -- Chief Financial Officer\nIt still continues to be strong, improving since COVID every quarter.\nChristian Henry -- President and Chief Executive Officer\nYeah. It continues to improve. And so I think we're really bullish on China. I think there's macro factors that are completely outside of our control between the U.S.\nand China that maybe I start to lose sleep over a little bit, but they're completely out of our control. But based on what we control and what we can see and what customers are actually doing with our technology, we're quite encouraged, and we think the opportunity is still in front of us, quite frankly.\nTejas Savant -- Morgan Stanley -- Analyst\nGot it. Really helpful. Thanks, guys.\nChristian Henry -- President and Chief Executive Officer\nYup.\nOperator\nAnd for the next question, Dan Brennan of Cowen. Please go ahead, sir.\nDan Brennan -- Cowen and Company -- Analyst\nGreat. Thanks. Thanks for taking the question. Hey, Christian.\nHey, Susan. Maybe just, Christian, you alluded to it a couple of times during the call, but just on the funnel itself, I don't know in the past kind of look on a clarity you provide on it. But just could you give a sense of what the funnel looks like today maybe like customer segment and kind of how it's evolved over the course of 2021?\nChristian Henry -- President and Chief Executive Officer\nYeah. First of all, Dan, congrats on your new role. We're going to miss Doug, but it's good to have you on the ball club. With respect to the funnel itself, let's state that we haven't given a lot of color, and I don't think we will give a lot of color because those processes internally are evolving and are being built and improving all the time.\n", "We've spent a ton of time this year defining the funnel more, creating a common language from which the sales force can communicate with each other and with executives so that we get much better about forecast accuracy, so that we can stand up in front of you and give you what we hope to be pretty reliable projections. One of the things we talked about for the first time, kind of some of the segment, market areas that we're focused on and our relative revenues. The reality is that the company didn't have any of those capabilities, and we had to come in and build that. And so at this time, I really -- it's probably not appropriate for me to give you more color on the specific funnel other than the general comment that often use.\nThis -- the increasing commercial footprint is directly impacting the quality and the size of the funnel, which does give us generally better visibility into the future than perhaps we've had in the past. But at any given quarter, since instruments are still such a significant part of our quarterly revenues and they're quite binary because they're large dollar numbers, they could have an impact on any given quarter. But if you look out over time, we're very encouraged what we see in the funnel that there is very strong demand for these products and platforms. This will help us grow.\nAs we grow, we will be able to improve our gross margins. As we improve our gross margins, we'll be able to get better leverage across the business and make that push toward ultimately getting to cash flow breakeven and better.\nDan Brennan -- Cowen and Company -- Analyst\nGreat. No, that was helpful. Thanks, Christian. Maybe just a high-level one on kind of academic funding.\nObviously, it seems to be pretty robust from the headline figures and entering '22. Is that something -- clearly you've got a lot of growth levers at your disposal, which you've discussed, but is that something " ]
2
[ 1, 0 ]
1
what are they seeking
BEIJING, China (CNN) -- Senior North Korean officials say the communist regime has "weaponized" its stockpile of plutonium, according to a U.S. scholar, in a move suggesting that North Korea may have significantly hardened its stance on nuclear negotiations. Selig Harrison said North Korean officials claimed to have enough plutonium for four or five warheads. Selig Harrison, one of the few U.S. scholars granted access to senior North Korean officials, said at a news conference in Beijing that the officials told him they had weaponized 30.8 kilograms of plutonium, enough for four or five warheads. The director of the Asia Program at the Center for International Policy, who just returned from a five-day visit to Pyongyang, said senior North Korean officials told him the warheads will not be open for inspection. If it is true, the news portends a gloomy outlook for the future of the six-party talks that began in 2003 with the goal of getting North Korea to end its nuclear program. "It does change the game," Harrison said. South Korea, the United States, Japan, China and Russia are participating in the talks. A 2007 agreement calls for scrapping nuclear weapons on the Korean peninsula in return for energy aid to the North, normalized relations between the North and the United States and Japan, and a formal peace pact. Watch a report on North Korea's nuclear negotiations » The North Koreans told Harrison they want the rest of the fuel aid that Japan has promised them. North Korea had agreed to disable the reactor that had produced plutonium for nuclear weapons. But the United States and its allies have asked it to give up the plutonium it already has, an estimated 30 kilograms, as well as details of any other bomb-producing programs. Harrison said one possible reason for Pyongyang's tough new stance could be the declining health of leader Kim Jong Il, who reportedly suffered a stroke last year and may no longer be involved in day-to-day decisions. "People I talked to have many indications that some important things are submitted to him, but he is not working in the way he used to," Harrison said. He said military hard-liners have taken the lead in demanding from the United States a full declaration and verification of all nuclear weapons sent to South Korea between 1957 and 1991. The hard-liners also seek full normalization of relations with Washington before more talks about scrapping their nuclear arsenal. On Tuesday, during her Senate confirmation hearing for the secretary of state position, Sen. Hillary Clinton made it clear: de-nuclearization first, then diplomatic normalization. President-elect Barack Obama has stated his willingness to talk to the North Korean leader. Harrison also said the North demanded the completion of the light-water reactors as compensation for the dismantling of the Yongbyon nuclear reactor. The light-water reactor, which is not capable of producing weapons-grade plutonium, was promised to North Korea in the early 1990s for the North giving up its nuclear weapons. Its construction has been suspended. North Korea has long considered its nuclear program integral to its national security. North Korea tested a nuclear weapon in 2006. In June, it acknowledged producing about 40 kilograms of enriched plutonium. CNN's John Vause contributed to this report.
[ "BEIJING, China (CNN) -- Senior North Korean officials say the communist regime has \"weaponized\" its stockpile of plutonium, according to a U.S. scholar, in a move suggesting that North Korea may have significantly hardened its stance on nuclear negotiations. Selig Harrison said North Korean officials claimed to have enough plutonium for four or five warheads. Selig Harrison, one of the few U.S. scholars granted access to senior North Korean officials, said at a news conference in Beijing that the officials told him they had weaponized 30.8 kilograms of plutonium, enough for four or five warheads. The director of the Asia Program at the Center for International Policy, who just returned from a five-day visit to Pyongyang, said senior North Korean officials told him the warheads will not be open for inspection. If it is true, the news portends a gloomy outlook for the future of the six-party talks that began in 2003 with the goal of getting North Korea to end its nuclear program. \"It does change the game,\" Harrison said. South Korea, the United States, Japan, China and Russia are participating in the talks. A 2007 agreement calls for scrapping nuclear weapons on the Korean peninsula in return for energy aid to the North, normalized relations between the North and the United States and Japan, and a formal peace pact. Watch a report on North Korea's nuclear negotiations » The North Koreans told Harrison they want the rest of the fuel aid that Japan has promised them. North Korea had agreed to disable the reactor that had produced plutonium for nuclear weapons. But the United States and its allies have asked it to give up the plutonium it already has, an estimated 30 kilograms, as well as details of any other bomb-producing programs. Harrison said one possible reason for Pyongyang's tough new stance could be the declining health of leader Kim Jong Il, who reportedly suffered a stroke last year and may no longer be involved in day-to-day decisions. \"People I talked to have many indications that some important things are submitted to him, but he is not working in the way he used to,\" Harrison said. He said military hard-liners have taken the lead in demanding from the United States a full declaration and verification of all nuclear weapons sent to South Korea between 1957 and 1991. The hard-liners also seek full normalization of relations with Washington before more talks about scrapping their nuclear arsenal. On Tuesday, during her Senate confirmation hearing for the secretary of state position, Sen. ", "Hillary Clinton made it clear: de-nuclearization first, then diplomatic normalization. President-elect Barack Obama has stated his willingness to talk to the North Korean leader. Harrison also said the North demanded the completion of the light-water reactors as compensation for the dismantling of the Yongbyon nuclear reactor. The light-water reactor, which is not capable of producing weapons-grade plutonium, was promised to North Korea in the early 1990s for the North giving up its nuclear weapons. Its construction has been suspended. North Korea has long considered its nuclear program integral to its national security. North Korea tested a nuclear weapon in 2006. In June, it acknowledged producing about 40 kilograms of enriched plutonium. CNN's John Vause contributed to this report." ]
2
[ 0, 0 ]
0
What is the current revenue for the WiFi market
dvanced engineering team to go after opportunities as they come in. I think Dave mentioned some of the opportunities. And I think it's the strength of the company being able to rapidly respond. We actually from a business process will look at opportunities as they come into the company, Pareto, those for opportunities and have the flexibility to shift. The beauty of what we are doing is we don't have to – we are not shifting technologies per se, the technologies that we are using with the exception of the WLP, have a relatively mature technologies, and we are pretty comfortable. So, we have the flexibility in the fab to run products from different markets. I think that's we have got very good supporting evidence that we can run dozens of different products in the fab just because it follows a very similar process flow. So, I think specifically, we certainly have moved resources from the 5G infrastructure small cell market. We have moved those on to – into the mobile market, as well as some of the advanced chips that we have been very vocal about in the WiFi, where we are integrating more than one filter into a module. And we do so really with the customer support and commitment. So, we have got agreements in place, as well as orders in place to actually produce those, as well as line of sight to programs. Anything you want to add to that, Dave? Dave Aichele -- Vice President of Business Development Yes. So Suji, a couple of comments that I would like to make is, early investments in the 5G infrastructure was primarily the China market, that return on investment has not really panned out, as well as we had hoped. And a lot of that is due to the way that China has been rolling out their spectrum. The infrastructure market is a little bit slow to adopt new standards. And the deployments in Europe and also in the U.S. is going to take a little bit of time. So, what we have been looking at is where is the really growth opportunities. And one of the things that is clear, at least with our engagements with the WiFi market is we are now recognized as one of the leading BAW filter suppliers. And the industry is starting to shift pretty significantly away from traditional type filters to more of these high performance filters. So, we see the activity in what we have established with 60 and upcoming seven. As a way to continue to leverage that we want to continue to have a portfolio of products that we will be the primary source that they go to, they would be in the end customer comes to us to have these engagements. So, with that and the activity level on mobile, we have had to put some design resources there. So, that's the main reason for some of the shifts. Suji Desilva -- ROTH Capital Partners -- Analyst OK. Thanks Jeff and Dave, that's very helpful color. And maybe just and this question may not be fair, but just to ask it. The mobile customers that are coming, versus the WiFi customers you have now, is there a way to kind of take the average run rate of the two over – as they mature over time and saying what kind of multiplier a mobile customer may have, customer [Inaudible] may have for you versus a typical WiFi customer? Dave Aichele -- Vice President of Business Development Yes. So, the multiples are pretty significant. And it really depends on if you are talking to Tier 1, or if you are talking to Tier 2. So, with respect to the Tier 1s, depending on the end platform that they are going after that multiplier can be pretty significant with respect to an OEM that we get in the WiFi market. So, that multiplier can be five times to 10 times with respect to what we are seeing right now on run rate on the WiFi side. So, that's something that, as we talked about that revenue will start layering on in calendar year 2023 and then going into 2024. Jeff Shealy -- Founder and Chief Executive Officer Yes. And Suji, I will just add to that that the pre-production levels for the mobile market are more in line with what the production levels are in the WiFi market, that's a another colorful way of saying what Dave said. Suji Desil
[ "dvanced engineering team to go after opportunities as they come in. I think Dave mentioned some of the opportunities. And I think it's the strength of the company being able to rapidly respond. We actually from a business process will look at opportunities as they come into the company, Pareto, those for opportunities and have the flexibility to shift.\nThe beauty of what we are doing is we don't have to – we are not shifting technologies per se, the technologies that we are using with the exception of the WLP, have a relatively mature technologies, and we are pretty comfortable. So, we have the flexibility in the fab to run products from different markets. I think that's we have got very good supporting evidence that we can run dozens of different products in the fab just because it follows a very similar process flow. So, I think specifically, we certainly have moved resources from the 5G infrastructure small cell market.\nWe have moved those on to – into the mobile market, as well as some of the advanced chips that we have been very vocal about in the WiFi, where we are integrating more than one filter into a module. And we do so really with the customer support and commitment. So, we have got agreements in place, as well as orders in place to actually produce those, as well as line of sight to programs. Anything you want to add to that, Dave?\nDave Aichele -- Vice President of Business Development\nYes. So Suji, a couple of comments that I would like to make is, early investments in the 5G infrastructure was primarily the China market, that return on investment has not really panned out, as well as we had hoped. And a lot of that is due to the way that China has been rolling out their spectrum. The infrastructure market is a little bit slow to adopt new standards.\nAnd the deployments in Europe and also in the U.S. is going to take a little bit of time. So, what we have been looking at is where is the really growth opportunities. And one of the things that is clear, at least with our engagements with the WiFi market is we are now recognized as one of the leading BAW filter suppliers.\n", "And the industry is starting to shift pretty significantly away from traditional type filters to more of these high performance filters. So, we see the activity in what we have established with 60 and upcoming seven. As a way to continue to leverage that we want to continue to have a portfolio of products that we will be the primary source that they go to, they would be in the end customer comes to us to have these engagements. So, with that and the activity level on mobile, we have had to put some design resources there.\nSo, that's the main reason for some of the shifts.\nSuji Desilva -- ROTH Capital Partners -- Analyst\nOK. Thanks Jeff and Dave, that's very helpful color. And maybe just and this question may not be fair, but just to ask it. The mobile customers that are coming, versus the WiFi customers you have now, is there a way to kind of take the average run rate of the two over – as they mature over time and saying what kind of multiplier a mobile customer may have, customer [Inaudible] may have for you versus a typical WiFi customer?\nDave Aichele -- Vice President of Business Development\nYes. So, the multiples are pretty significant. And it really depends on if you are talking to Tier 1, or if you are talking to Tier 2. So, with respect to the Tier 1s, depending on the end platform that they are going after that multiplier can be pretty significant with respect to an OEM that we get in the WiFi market.\nSo, that multiplier can be five times to 10 times with respect to what we are seeing right now on run rate on the WiFi side. So, that's something that, as we talked about that revenue will start layering on in calendar year 2023 and then going into 2024.\nJeff Shealy -- Founder and Chief Executive Officer\nYes. And Suji, I will just add to that that the pre-production levels for the mobile market are more in line with what the production levels are in the WiFi market, that's a another colorful way of saying what Dave said.\nSuji Desil" ]
2
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What is the expected revenue opportunity for Applied Materials in the interconnect layers process step for the seven-nanometer and three-nanometer node
example is an implant, where over the past five years, we've introduced 10 new systems developed for specific ICAPS applications. While navigating near-term challenges remains our top priority today, we are not losing sight of the bigger picture and long-term opportunities. It's now consensus within the industry that there's a clear path to a $1 trillion semiconductor market before the end of the decade. That would represent a high single-digit compound annual growth rate from where we are today. In other words, it took the industry more than five decades to reach $0.5 trillion of annual revenues and we will add another $0.5 trillion within the next six to eight years. We feel even better about where Applied Materials sits within the ecosystem. Because technology complexity is increasing, we expect equipment intensity will remain at today's level or increase further over that period. As a result, WFE will grow in line or faster than the overall semiconductor market. Then within equipment spending, major technology inflections are enabled by materials engineering, shifting more dollars to our available market over time. We described the industry road map that will deliver future improvements in performance, power and cost of semiconductor devices as the PPACt playbook. While different companies have their own version of the PPACt playbook, the fundamental components of the road map are the same: new architectures, new 3D structures, new materials, new ways to shrink and advanced packaging. Within each of these five pillars, clear technology inflections are emerging that can be quantified in terms of impact, value and timing. At our recent master class, we described the industry's transition from FinFET to gate-all-around, which is a new 3D structure. Applied has the broadest portfolio of solutions to enable next-generation transistor technology. With the gate-all-around inflection, the total available market for our transistor product portfolio grows by more than 15%. Based on our tool of record positions, we expect to increase our share of that available market by more than five points. And in terms of timing, we expect to start ramping shipments next year. In our next master class at the end of the month, we'll talk about wiring and chip integration innovations. Contact and interconnect are in both major focus areas for our customers, as they develop new materials and new 3D structures, including backside power distribution networks. Between the seven-nanometer and three-nanometer node, contact metalization steps are growing more than 50%, and our total available market is expanding almost 80%. For interconnect layers, process steps are being added even faster, and we expect our revenue opportunity to approximately triple. We'll also provide an update on our momentum in advanced packaging. At the investor meeting a year ago, we said, we expected to double our packaging revenue between 2020 and 2024. Today, we believe we're on track to hit our 2024 packaging revenue goal one year early by winning more than 60% share of our served market. Beyond equipment, we are delivering and capturing more value with advanced services. Facing both supply constraints and record fab utilization, customers are seeing significant benefits from using our proprietary parts management and service We see this reflected in our results as AGS delivered record revenue in the quarter, up 15% year on year. Before I hand the call over to Brice, I'll quickly summarize. Semiconductors are the building blocks of the model world, making them more strategically and economically important than ever. Today, the entire industry is working hard to keep up with the world's rapidly growing consumption of silicon. Demand for Applied's products and services is strong, sustainable and broad-based. We anticipate our ability to fulfill this demand will remain constrained by ongoing supply chain challenges in the near-term with incremental improvements beginning in our fourth quarter. Our number one priority is to continue working collaboratively with customers and
[ " example is an implant, where over the past five years, we've introduced 10 new systems developed for specific ICAPS applications. While navigating near-term challenges remains our top priority today, we are not losing sight of the bigger picture and long-term opportunities.\nIt's now consensus within the industry that there's a clear path to a $1 trillion semiconductor market before the end of the decade. That would represent a high single-digit compound annual growth rate from where we are today. In other words, it took the industry more than five decades to reach $0.5 trillion of annual revenues and we will add another $0.5 trillion within the next six to eight years. We feel even better about where Applied Materials sits within the ecosystem.\nBecause technology complexity is increasing, we expect equipment intensity will remain at today's level or increase further over that period. As a result, WFE will grow in line or faster than the overall semiconductor market. Then within equipment spending, major technology inflections are enabled by materials engineering, shifting more dollars to our available market over time. We described the industry road map that will deliver future improvements in performance, power and cost of semiconductor devices as the PPACt playbook.\nWhile different companies have their own version of the PPACt playbook, the fundamental components of the road map are the same: new architectures, new 3D structures, new materials, new ways to shrink and advanced packaging. Within each of these five pillars, clear technology inflections are emerging that can be quantified in terms of impact, value and timing. At our recent master class, we described the industry's transition from FinFET to gate-all-around, which is a new 3D structure. Applied has the broadest portfolio of solutions to enable next-generation transistor technology.\nWith the gate-all-around inflection, the total available market for our transistor product portfolio grows by more than 15%. Based on our tool of record positions, we expect to increase our share of that available market by more than five points. And in terms of timing, we expect to start ramping shipments next year. In our next master class at the end of the month, we'll talk about wiring and chip integration innovations.\n", "Contact and interconnect are in both major focus areas for our customers, as they develop new materials and new 3D structures, including backside power distribution networks. Between the seven-nanometer and three-nanometer node, contact metalization steps are growing more than 50%, and our total available market is expanding almost 80%. For interconnect layers, process steps are being added even faster, and we expect our revenue opportunity to approximately triple. We'll also provide an update on our momentum in advanced packaging.\nAt the investor meeting a year ago, we said, we expected to double our packaging revenue between 2020 and 2024. Today, we believe we're on track to hit our 2024 packaging revenue goal one year early by winning more than 60% share of our served market. Beyond equipment, we are delivering and capturing more value with advanced services. Facing both supply constraints and record fab utilization, customers are seeing significant benefits from using our proprietary parts management and service We see this reflected in our results as AGS delivered record revenue in the quarter, up 15% year on year.\nBefore I hand the call over to Brice, I'll quickly summarize. Semiconductors are the building blocks of the model world, making them more strategically and economically important than ever. Today, the entire industry is working hard to keep up with the world's rapidly growing consumption of silicon. Demand for Applied's products and services is strong, sustainable and broad-based.\nWe anticipate our ability to fulfill this demand will remain constrained by ongoing supply chain challenges in the near-term with incremental improvements beginning in our fourth quarter. Our number one priority is to continue working collaboratively with customers and" ]
2
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What is the expected growth rate in Fios revenues for the next quarter
nk about those customers in the first 46 C-Band markets that will come online, the customers taking the LTE product, they're getting a router that also has C-Band in so they could immediately step up to those speeds when as soon as we turn C-Band on there soon. And the Fios expansion, it's -- there is a couple of pieces. We see great opportunity, as Hans mentioned. The other piece, it's a great cost opportunity as well as we continue to upgrade the network technology in that footprint as well. So we've been investing in there for a number of years, maybe haven't spoken about it quite as much, but it continues to be a very good growth driver for the business, and we see very strong line of sight for it to continue to do so. 4.7% growth in Fios revenues this quarter, certainly something we can continue to build on. Brett Feldman -- Goldman Sachs -- Analyst If you don't mind, just a quick follow-up there on the cost point. Those of us who live in regions that have Fios know that sometimes you can get Fios maybe down the street, you can't. Are you kind of completing the communities? In other words, are you going to be at the point where you could finally rip out all this legacy infrastructure? Is that what you meant by the cost savings? Matthew D. Ellis -- Executive Vice President and Chief Financial Officer Well, that's absolutely part of it. Now we're going to be all the way there. That's a long-term goal for us. But certainly as you replace in a certain location copper with fiber, there is a good benefit from a cost standpoint in addition to the revenue step-up opportunities you get with that customer base. So it's a win-win on both sides of the P&L there. Brett Feldman -- Goldman Sachs -- Analyst Thank you. Brady Connor -- Senior Vice President, Investor Relations Great. Thanks. Brett. Brad, we're ready for the next question. Operator Thank you. The next question comes from John Hodulik of UBS. Sir, your line is open. John Hodulik -- UBS -- Analyst Great. Thanks, guys. Just a couple of follow-ups on the -- again, on the C-Band deployment. First of all, are you seeing any supply chain or labor shortage issues with it that may affect the timing of that rollout? And then beyond that, thanks for the 15 million sort of homes passed with fixed wireless by year-end. Can you give us a sense of what the C-Band deployment, the sort of first phase of that, what that will do to that number? As that gets launched, you'd turn on a number of more homes? And then lastly, can you give us a sense of how your sort of go-to-market strategy will change? And do you expect the C-Band deployment to change the trajectory of your net adds, both on the fixed and mobile basis when we see that early next year? Thanks. Hans Vestberg -- Chairman and Chief Executive Officer On the C-Band, as I said before, there are of course challenges in supply chain, but our team has -- I think our team is the most outstanding operational excellence team in the world, and they are getting around all of it. On all the major equipments, radios, etc., that's already secured. This is in a warehouse, and that's how we work. I mean, we do long-term planning with our suppliers years back. So we feel really good about that. There has been some challenges amid material. The team is working around them every day. Finding new solutions in order for us to deploy, and they will continue to do so. When it comes to resources, again, we secured our resources years ahead to be prepared for this type of deployment we have, and we are doing more deployment than were ever done before. You talk about C-Band, we do millimeter wave, 14,000 this year. We do fiber. We do augmentations on the 4G. We do Fios. The team -- so it's many things they are doing and we have never done more than this. And I can tell you, the team with supply chain and deployment are doing a great job. When it comes to them 15 million households passed by year-end this year, that includes all the technologies we have. And of course, the second part that we guided for when we had our Investor Day was to get the 50 mill
[ "nk about those customers in the first 46 C-Band markets that will come online, the customers taking the LTE product, they're getting a router that also has C-Band in so they could immediately step up to those speeds when as soon as we turn C-Band on there soon.\nAnd the Fios expansion, it's -- there is a couple of pieces. We see great opportunity, as Hans mentioned. The other piece, it's a great cost opportunity as well as we continue to upgrade the network technology in that footprint as well. So we've been investing in there for a number of years, maybe haven't spoken about it quite as much, but it continues to be a very good growth driver for the business, and we see very strong line of sight for it to continue to do so. 4.7% growth in Fios revenues this quarter, certainly something we can continue to build on.\nBrett Feldman -- Goldman Sachs -- Analyst\nIf you don't mind, just a quick follow-up there on the cost point. Those of us who live in regions that have Fios know that sometimes you can get Fios maybe down the street, you can't. Are you kind of completing the communities? In other words, are you going to be at the point where you could finally rip out all this legacy infrastructure? Is that what you meant by the cost savings?\nMatthew D. Ellis -- Executive Vice President and Chief Financial Officer\nWell, that's absolutely part of it. Now we're going to be all the way there. That's a long-term goal for us. But certainly as you replace in a certain location copper with fiber, there is a good benefit from a cost standpoint in addition to the revenue step-up opportunities you get with that customer base. So it's a win-win on both sides of the P&L there.\nBrett Feldman -- Goldman Sachs -- Analyst\nThank you.\nBrady Connor -- Senior Vice President, Investor Relations\nGreat. Thanks. Brett. Brad, we're ready for the next question.\nOperator\nThank you. The next question comes from John Hodulik of UBS. Sir, your line is open.\nJohn Hodulik -- UBS -- Analyst\n", "Great. Thanks, guys. Just a couple of follow-ups on the -- again, on the C-Band deployment. First of all, are you seeing any supply chain or labor shortage issues with it that may affect the timing of that rollout? And then beyond that, thanks for the 15 million sort of homes passed with fixed wireless by year-end. Can you give us a sense of what the C-Band deployment, the sort of first phase of that, what that will do to that number? As that gets launched, you'd turn on a number of more homes? And then lastly, can you give us a sense of how your sort of go-to-market strategy will change? And do you expect the C-Band deployment to change the trajectory of your net adds, both on the fixed and mobile basis when we see that early next year? Thanks.\nHans Vestberg -- Chairman and Chief Executive Officer\nOn the C-Band, as I said before, there are of course challenges in supply chain, but our team has -- I think our team is the most outstanding operational excellence team in the world, and they are getting around all of it. On all the major equipments, radios, etc., that's already secured. This is in a warehouse, and that's how we work. I mean, we do long-term planning with our suppliers years back. So we feel really good about that.\nThere has been some challenges amid material. The team is working around them every day. Finding new solutions in order for us to deploy, and they will continue to do so. When it comes to resources, again, we secured our resources years ahead to be prepared for this type of deployment we have, and we are doing more deployment than were ever done before. You talk about C-Band, we do millimeter wave, 14,000 this year. We do fiber. We do augmentations on the 4G. We do Fios. The team -- so it's many things they are doing and we have never done more than this. And I can tell you, the team with supply chain and deployment are doing a great job.\nWhen it comes to them 15 million households passed by year-end this year, that includes all the technologies we have. And of course, the second part that we guided for when we had our Investor Day was to get the 50 mill" ]
2
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1
What was the revenue for the fourth quarter of 2020 for TTM, excluding the Mobility business unit and the two E-MS plants that were closed
revenue, due primarily to uncertainty around the timing and ramp of Phase 3 build for 5G in China. For the full year, networking communications declined 4%. We expect this market to grow, but be below the longer-term forecasts of 5% to 8% growth in 2021, due to the anticipated soft start in the early part of the year, followed by a ramp of 5G infrastructure needs in the back half of the year complemented by growth in networking. Sales in the computing, storage, peripherals end-market represented 13% of total sales in the fourth quarter compared to 13% in Q4 of 2019 and in the third quarter of 2020. This end market was up 2% year-on-year as growth in our semiconductor customers' offset modest year-on-year declines from our data center customers. We expect revenues in this end market to represent approximately 14% of first quarter sales. For the full year, computing grew 9% as we saw growth across our data center and semiconductor customers. In 2021, we expect to be above the forecasted end market growth of 1% to 3%, driven primarily by data center growth. Next, I'll cover some details from the fourth quarter. Note that all of the following operations metrics exclude the Mobility business unit and the two E-MS plants that we closed. This information is also available on page six of our earnings presentation. During the quarter, our advanced technology business, which includes HDI, rigid-flex, and RF subsystems and components accounted for approximately 31% of our revenue. This compares to approximately 27% in the year ago quarter and 29% in Q3. We are continuing to pursue new business opportunities and increase customer design engagement activities that will leverage our advanced technology capabilities in new markets. Capacity utilization in Asia Pacific was 63% in Q4 compared to 61% in the year ago quarter and 63% in Q3. Our overall capacity utilization in North America was 58% in Q3 compared to 58% in the year ago quarter and 61% in Q3. Our top five customers contributed 34% of total sales in the fourth quarter of 2020 compared to 36% in the third quarter of 2020. Our largest customer accounted for 14% of sales in the fourth quarter. At the end of Q4, our 90-day backlog, which is subject to cancellations was $483.9 million compared to $402.8 million at the end of the fourth quarter of last year and $437.8 million at the end of Q3. Our PCB book-to-bill ratio was 1.19 for the three months ending December 28. I'd like to conclude by again thanking our employees for continuing to contribute to TTM and our critical mission of inspiring innovation with our customers. Their efforts are particularly appreciated during these times by our customers in critical essential areas like defense and the medical industries. Despite the COVID-19 and currency related challenges we faced in 2020, our business performed better than we expected as a direct results of operational excellence, end market diversification and our employees concerted efforts to engage and support our customers. We've also taken positive strategic moves that will strengthen TTM for the long term. Now, Todd will review our financial performance for the fourth quarter. Todd? Todd B. Schull -- Executive Vice President and Chief Financial Officer Thanks, Tom, and good afternoon, everyone. As Tom mentioned earlier, in 2020, TTM announced the closing of the sale of its Mobility business unit. As such, that the closure of TTM's GAAP results reflects the Mobility business unit as a discontinued operation. During this call, I will discuss non-GAAP financial information, which excludes the results of the Mobility business unit. The E-MS business unit is still included in both the GAAP and non-GAAP results we have reported. Please refer to the earnings schedule for additional details on exited businesses and continuing operations. Page seven of our earnings presentation and the appendix of our investor presentation also contain this information. For the fourth quarter, net sales from continuing operations were $523.8 million, compared to $535.7 million in the fourth quarter of
[ "revenue, due primarily to uncertainty around the timing and ramp of Phase 3 build for 5G in China. For the full year, networking communications declined 4%. We expect this market to grow, but be below the longer-term forecasts of 5% to 8% growth in 2021, due to the anticipated soft start in the early part of the year, followed by a ramp of 5G infrastructure needs in the back half of the year complemented by growth in networking.\nSales in the computing, storage, peripherals end-market represented 13% of total sales in the fourth quarter compared to 13% in Q4 of 2019 and in the third quarter of 2020. This end market was up 2% year-on-year as growth in our semiconductor customers' offset modest year-on-year declines from our data center customers. We expect revenues in this end market to represent approximately 14% of first quarter sales. For the full year, computing grew 9% as we saw growth across our data center and semiconductor customers. In 2021, we expect to be above the forecasted end market growth of 1% to 3%, driven primarily by data center growth.\nNext, I'll cover some details from the fourth quarter. Note that all of the following operations metrics exclude the Mobility business unit and the two E-MS plants that we closed. This information is also available on page six of our earnings presentation. During the quarter, our advanced technology business, which includes HDI, rigid-flex, and RF subsystems and components accounted for approximately 31% of our revenue. This compares to approximately 27% in the year ago quarter and 29% in Q3. We are continuing to pursue new business opportunities and increase customer design engagement activities that will leverage our advanced technology capabilities in new markets.\n", "Capacity utilization in Asia Pacific was 63% in Q4 compared to 61% in the year ago quarter and 63% in Q3. Our overall capacity utilization in North America was 58% in Q3 compared to 58% in the year ago quarter and 61% in Q3. Our top five customers contributed 34% of total sales in the fourth quarter of 2020 compared to 36% in the third quarter of 2020. Our largest customer accounted for 14% of sales in the fourth quarter. At the end of Q4, our 90-day backlog, which is subject to cancellations was $483.9 million compared to $402.8 million at the end of the fourth quarter of last year and $437.8 million at the end of Q3. Our PCB book-to-bill ratio was 1.19 for the three months ending December 28.\nI'd like to conclude by again thanking our employees for continuing to contribute to TTM and our critical mission of inspiring innovation with our customers. Their efforts are particularly appreciated during these times by our customers in critical essential areas like defense and the medical industries. Despite the COVID-19 and currency related challenges we faced in 2020, our business performed better than we expected as a direct results of operational excellence, end market diversification and our employees concerted efforts to engage and support our customers. We've also taken positive strategic moves that will strengthen TTM for the long term.\nNow, Todd will review our financial performance for the fourth quarter. Todd?\nTodd B. Schull -- Executive Vice President and Chief Financial Officer\nThanks, Tom, and good afternoon, everyone. As Tom mentioned earlier, in 2020, TTM announced the closing of the sale of its Mobility business unit. As such, that the closure of TTM's GAAP results reflects the Mobility business unit as a discontinued operation. During this call, I will discuss non-GAAP financial information, which excludes the results of the Mobility business unit. The E-MS business unit is still included in both the GAAP and non-GAAP results we have reported. Please refer to the earnings schedule for additional details on exited businesses and continuing operations. Page seven of our earnings presentation and the appendix of our investor presentation also contain this information.\nFor the fourth quarter, net sales from continuing operations were $523.8 million, compared to $535.7 million in the fourth quarter of" ]
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What is the expected sequential increase in telecom transport revenue in the second half of the calendar year
constraints in telecom transmission in Malaysia are improving, but we are not at 100% output yet. We won't be able to satisfy than more than $100 million of current backlog we have for these products until the second half of the calendar year. Telecom transport revenue is expected to be up sequentially due to progress on relieving supply challenges and new product momentum in the market. Datacom chip revenue is expected to be up sequentially, once again due to continued strong cloud and 5G market demand, but is still gated by capacity in our wafer fab. We are optimistic about the long-term outlook for our telecom and datacom product lines due to expected long-term demand trends, our technology and product leadership position and improving industry dynamics. As I highlighted in my initial remarks, the world's experience with COVID-19 is changing how we do things in all aspects of work and life. This change directly drives the need for our telecom and datacom products. The market is designing networks around our leading products to enable scaling to higher capacity. This is very favorable to us. Our indium phosphide coherent components and modules enable the higher speed and density needed for higher network bandwidth. Our high-port count and MxN ROADM technology enables networks to scale capacity much more efficiently. And our higher speed, lower power consumption datacom chips are critically important to drive network capacity and efficiencies in 5G and next-generation data center networks. Turning to industrial and consumer. Our industrial and consumer product lines were down 24% sequentially as expected due to seasonal factors, but up 40% relative to the prior year. Year-on-year growth was driven by customers incorporating 3D sensing in a higher percentage of their product offerings compared to last year and increased consumer demand for 3D sensing enabled products. We steeply ramped volume production of lasers for world-facing cameras or LiDAR for consumer applications in the third quarter. We expect to continue to ramp volumes of such lasers throughout the calendar year. Looking to our fourth quarter. Our guidance contemplates 3D sensing declining significantly by more than 40% due to expectations around consumer demand, the potential for smartphone supply chain challenges impacting demand for our products and potential risk around the timing of new customer programs. We have a range of new products we are readying to ramp in the second half of the calendar year including additional world-facing designs that we expect will increase the penetration of world-facing 3D sensing or LiDAR-enabled cameras. It is too early to quantify with confidence any impact to consumer volumes or the timing of new programs due to COVID-19, but we are very closely monitoring the situation. We believe the 3D sensing market will continue to grow over the long term. Mobile device manufacturers continue to make progress on their plans to incorporate front-facing and world-facing capabilities into a wider range of models. We are engaged with a broad range of customers focused on the consumer, industrial and automotive end markets looking to add 3D sensing or LIDAR capabilities to enable their applications. Now on to lasers. Third-quarter lasers revenue decreased to $43.5 million driven primarily by decline in fiber laser sales. We expect over the next several quarters that our fiber lasers business will soften further as it is tied to growth in global manufacturing. Our solid-state laser revenue expanded nicely quarter on quarter and attained levels not seen in nearly two years. This was due to strength in certain semiconductor manufacturing end markets including 5G antenna fabrication. We expect these trends to continue into the fourth quarter with fiber laser declines being larger than solid-state growth resulting in laser revenue declining sequentially by approximately 20%. Throughout my remarks, I've tried to give you much more detail than usual about the status of our market demand for our products, our operations and our ability to supp
[ " constraints in telecom transmission in Malaysia are improving, but we are not at 100% output yet. We won't be able to satisfy than more than $100 million of current backlog we have for these products until the second half of the calendar year.\nTelecom transport revenue is expected to be up sequentially due to progress on relieving supply challenges and new product momentum in the market. Datacom chip revenue is expected to be up sequentially, once again due to continued strong cloud and 5G market demand, but is still gated by capacity in our wafer fab. We are optimistic about the long-term outlook for our telecom and datacom product lines due to expected long-term demand trends, our technology and product leadership position and improving industry dynamics. As I highlighted in my initial remarks, the world's experience with COVID-19 is changing how we do things in all aspects of work and life.\nThis change directly drives the need for our telecom and datacom products. The market is designing networks around our leading products to enable scaling to higher capacity. This is very favorable to us. Our indium phosphide coherent components and modules enable the higher speed and density needed for higher network bandwidth.\nOur high-port count and MxN ROADM technology enables networks to scale capacity much more efficiently. And our higher speed, lower power consumption datacom chips are critically important to drive network capacity and efficiencies in 5G and next-generation data center networks. Turning to industrial and consumer. Our industrial and consumer product lines were down 24% sequentially as expected due to seasonal factors, but up 40% relative to the prior year.\nYear-on-year growth was driven by customers incorporating 3D sensing in a higher percentage of their product offerings compared to last year and increased consumer demand for 3D sensing enabled products. We steeply ramped volume production of lasers for world-facing cameras or LiDAR for consumer applications in the third quarter. We expect to continue to ramp volumes of such lasers throughout the calendar year. Looking to our fourth quarter.\n", "Our guidance contemplates 3D sensing declining significantly by more than 40% due to expectations around consumer demand, the potential for smartphone supply chain challenges impacting demand for our products and potential risk around the timing of new customer programs. We have a range of new products we are readying to ramp in the second half of the calendar year including additional world-facing designs that we expect will increase the penetration of world-facing 3D sensing or LiDAR-enabled cameras. It is too early to quantify with confidence any impact to consumer volumes or the timing of new programs due to COVID-19, but we are very closely monitoring the situation. We believe the 3D sensing market will continue to grow over the long term.\nMobile device manufacturers continue to make progress on their plans to incorporate front-facing and world-facing capabilities into a wider range of models. We are engaged with a broad range of customers focused on the consumer, industrial and automotive end markets looking to add 3D sensing or LIDAR capabilities to enable their applications. Now on to lasers. Third-quarter lasers revenue decreased to $43.5 million driven primarily by decline in fiber laser sales.\nWe expect over the next several quarters that our fiber lasers business will soften further as it is tied to growth in global manufacturing. Our solid-state laser revenue expanded nicely quarter on quarter and attained levels not seen in nearly two years. This was due to strength in certain semiconductor manufacturing end markets including 5G antenna fabrication. We expect these trends to continue into the fourth quarter with fiber laser declines being larger than solid-state growth resulting in laser revenue declining sequentially by approximately 20%.\nThroughout my remarks, I've tried to give you much more detail than usual about the status of our market demand for our products, our operations and our ability to supp" ]
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What is the growth rate of the IoT segment in 2021
e're at in that adoption curve of 5G already? And then kind of just trying to parse it together, you're not getting MSM guidance anymore, but I mean, are we already pretty close to that kind of run rate for 5G on a quarterly basis? Cristiano Amon -- President Blayne, this is Cristiano. When you think about China market, we're very happy because the price points of 5G became very aggressive, and we saw that even starting in the last quarter, and that's driving probably more than 50% of all the new activations and all of the new phone launches with 5G. We like that position. As Akash outlined in the prior question, we're very well hedged regardless of who wins in the marketplace. And we expect the China-accelerated transition of 5G with lower price points to have an impact in how we're going to see this unfolding in emerging markets as China provide a lot of the handsets for emerging markets as well. Akash Palkhiwala -- Executive Vice President and Chief Financial Officer And then also just to add, that we are providing an additional data point on the 5G side on the total size of the market for 2021. We are forecasting a range of 450 million to 550 million devices, which really, when you look at a year-over-year basis, that's 150% growth. So extremely strong growth going into it. And as we exit the calendar year 2020, we're seeing that velocity going into '21. Blayne Curtis -- Barclays -- Analyst And then a follow-up. Just really appreciate the segment detail. When you look at IoT, you answered why it's spiking up so much. I'd be curious to know a little bit more about the history of that segment. It looks like you kind of model it back to the details you gave, it's been running around $700 million a quarter. So I'm just trying to put in perspective the strength you're seeing here, and how to think about it going forward. Obviously, everybody is seeing a big work-from-home push. But as you move forward, does some of that roll off? Or has this business been at higher levels prior? Just any context would be great. Akash Palkhiwala -- Executive Vice President and Chief Financial Officer Yes. So if you look at the disclosure we have on our website, we're providing detail for fiscal '19 on an annual basis and '20 on a quarterly basis. And so I think there's enough data there for you to kind of come up with some trends on the business. And then maybe I'll go back to our Analyst Day commentary last year, we outlined growth and a vision forecast for the IoT segment. And so you could think about it the same way, where you'll be able to look at how the SAM grows and the parts of that SAM that we are interested in and how that grows, and that would be a good way of thinking about the long-term opportunity. Cristiano Amon -- President Blayne, it's Cristiano. If I could add some qualitative comments. As you pointed out, there is this enterprise transformation of the home. It's driving a lot of connectivity. You also have an accelerated digital transformation. But most importantly, you have 5G going to other industries. So this business and what it is today is probably a good proxy of a growth business for us as we realize this vision of 5G and other industries going forward. Blayne Curtis -- Barclays -- Analyst Thank you. Operator Our next question comes from Ross Seymore with Deutsche Bank. Please proceed with your question. Ross Seymore -- Deutsche Bank -- Analyst Guys, thanks for letting me ask a question and a follow up. Congrats on the strong results. The first one is I think everybody appreciates the end market splits that you're going to have. But before the MSMs and the revenue per MSMs disappear for good, it's great to see that you've gotten it back above $30 on the revenue per MSM side. I just wanted to dive into, looking forward, does the 1.5 times content framework continue? Or is that $30 largely capturing it? And really, I guess what I'm getting at is if you're going to have 150% increase in your 5G units next year, is that going to be a tailwind on both the unit and the revenue per MSM side? Or more so one than the other
[ "e're at in that adoption curve of 5G already? And then kind of just trying to parse it together, you're not getting MSM guidance anymore, but I mean, are we already pretty close to that kind of run rate for 5G on a quarterly basis?\nCristiano Amon -- President\nBlayne, this is Cristiano. When you think about China market, we're very happy because the price points of 5G became very aggressive, and we saw that even starting in the last quarter, and that's driving probably more than 50% of all the new activations and all of the new phone launches with 5G. We like that position. As Akash outlined in the prior question, we're very well hedged regardless of who wins in the marketplace.\nAnd we expect the China-accelerated transition of 5G with lower price points to have an impact in how we're going to see this unfolding in emerging markets as China provide a lot of the handsets for emerging markets as well.\nAkash Palkhiwala -- Executive Vice President and Chief Financial Officer\nAnd then also just to add, that we are providing an additional data point on the 5G side on the total size of the market for 2021. We are forecasting a range of 450 million to 550 million devices, which really, when you look at a year-over-year basis, that's 150% growth. So extremely strong growth going into it. And as we exit the calendar year 2020, we're seeing that velocity going into '21.\nBlayne Curtis -- Barclays -- Analyst\nAnd then a follow-up. Just really appreciate the segment detail. When you look at IoT, you answered why it's spiking up so much. I'd be curious to know a little bit more about the history of that segment.\nIt looks like you kind of model it back to the details you gave, it's been running around $700 million a quarter. So I'm just trying to put in perspective the strength you're seeing here, and how to think about it going forward. Obviously, everybody is seeing a big work-from-home push. But as you move forward, does some of that roll off? Or has this business been at higher levels prior? Just any context would be great.\nAkash Palkhiwala -- Executive Vice President and Chief Financial Officer\n", "Yes. So if you look at the disclosure we have on our website, we're providing detail for fiscal '19 on an annual basis and '20 on a quarterly basis. And so I think there's enough data there for you to kind of come up with some trends on the business. And then maybe I'll go back to our Analyst Day commentary last year, we outlined growth and a vision forecast for the IoT segment.\nAnd so you could think about it the same way, where you'll be able to look at how the SAM grows and the parts of that SAM that we are interested in and how that grows, and that would be a good way of thinking about the long-term opportunity.\nCristiano Amon -- President\nBlayne, it's Cristiano. If I could add some qualitative comments. As you pointed out, there is this enterprise transformation of the home. It's driving a lot of connectivity.\nYou also have an accelerated digital transformation. But most importantly, you have 5G going to other industries. So this business and what it is today is probably a good proxy of a growth business for us as we realize this vision of 5G and other industries going forward.\nBlayne Curtis -- Barclays -- Analyst\nThank you.\nOperator\nOur next question comes from Ross Seymore with Deutsche Bank. Please proceed with your question.\nRoss Seymore -- Deutsche Bank -- Analyst\nGuys, thanks for letting me ask a question and a follow up. Congrats on the strong results. The first one is I think everybody appreciates the end market splits that you're going to have. But before the MSMs and the revenue per MSMs disappear for good, it's great to see that you've gotten it back above $30 on the revenue per MSM side.\nI just wanted to dive into, looking forward, does the 1.5 times content framework continue? Or is that $30 largely capturing it? And really, I guess what I'm getting at is if you're going to have 150% increase in your 5G units next year, is that going to be a tailwind on both the unit and the revenue per MSM side? Or more so one than the other" ]
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What is the expected decline in the off-highway segment in percentage points
Great. Thanks. And just lastly on these new awards that are coming in, it sounds like they're coming in in a relatively short time frame, which is truly impressive to see how you guys are doing there. And it obviously becomes meaningful to growth relatively soon. How should we be thinking about the incremental margins on backlog as you start to transition? Is it very different manufacturing than what you guys have done in the past? Is there some kind of a like a grow in period while these are still relatively mature products? Jonathan Collins -- Executive Vice President & Chief Financial Officer Sure. We continue to believe that there is margin expansion potential as we move from purely mechanical systems to software control mechatronic systems. We'll be conservative and thoughtful as we roll on the backlog and what we incorporate in our guidance. But certainly having more systems responsibility and having smart systems become a bigger piece of the equation, we believe drives long-term margin expansion potential. And that should give you a general sense on the financial side. James Kamsickas -- President, Chief Executive Officer, & Director And just to add some color, good morning Rod I'd add on the manufacturing question you added there which is -- it's the beauty of being able to get the assets, while they are still in the market the companies we bought they are actually been in high volume. Motor manufacturing, inverter manufacturing so with them come a lot of folks. So I think you should recall when we first met I was with Lear I have a lot of experience on that electrification side as well albeit wiring and PCB boards and all that stuff. I think we're in pretty good shape there, but we also don't underestimate that or minimize that as we all come up the curve in a much higher volume environment and these type of electrodynamic products that we're going to -- we have to be ready for it. So that's a major focus of ours. Operator Your next question is from the line of Ryan Brinkman with JPMorgan. Ryan Brinkman -- JPMorgan -- Analyst Hi. Thanks for taking my question, which is relative to the 2020 outlook slide. I know you're looking for company-specific factors, backlog and acquisition to roughly more than offset the end market headwinds to revenue. Can you please elaborate on that second point about the potential for margin expansion? What contribution margin are you assuming from the backlog revenue? And would it will be really be the decremental to softer volume from industry headwinds will be higher than the incremental on the backlog revenue? So when you consider that, what does that imply about the magnitude of the tailwind that you're expecting from lower cost in commodities? And how would you rate your visibility into those savings? Jonathan Collins -- Executive Vice President & Chief Financial Officer Sure. So maybe I'll just touch on the organic mix first. The piece that's related to the market is principally made up of the heavy vehicle segments. We're going to see a meaningful decline in the Class 8 market in North America where you would expect the downward contribution margin to be less than 20%. We've highlighted before that at mid-cycle, the heavy vehicle segment represents only about one-third of the commercial vehicle segment and it is the least profitable in that area. So it helps out a little bit there. However, the other part of the organic decline that's related to market is on the off-highway segment, where we would expect it to be above 20%. So I would say on balance, on a blend, you're going to see around 20% is what I would expect for the market declines. The backlog will come online at a comparable margin, which is why we still believe similar to what we indicated at the beginning of this year when we laid out an outlook for next year is that relatively flat top line organically and the negligible impact on the bottom line there. I think what we wanted to highlight with the organic or the inorganic cost synergies in the lower commodity cost is that both of those have trended better than we ex
[ "Great. Thanks. And just lastly on these new awards that are coming in, it sounds like they're coming in in a relatively short time frame, which is truly impressive to see how you guys are doing there. And it obviously becomes meaningful to growth relatively soon. How should we be thinking about the incremental margins on backlog as you start to transition? Is it very different manufacturing than what you guys have done in the past? Is there some kind of a like a grow in period while these are still relatively mature products?\nJonathan Collins -- Executive Vice President & Chief Financial Officer\nSure. We continue to believe that there is margin expansion potential as we move from purely mechanical systems to software control mechatronic systems. We'll be conservative and thoughtful as we roll on the backlog and what we incorporate in our guidance. But certainly having more systems responsibility and having smart systems become a bigger piece of the equation, we believe drives long-term margin expansion potential. And that should give you a general sense on the financial side.\nJames Kamsickas -- President, Chief Executive Officer, & Director\nAnd just to add some color, good morning Rod I'd add on the manufacturing question you added there which is -- it's the beauty of being able to get the assets, while they are still in the market the companies we bought they are actually been in high volume. Motor manufacturing, inverter manufacturing so with them come a lot of folks. So I think you should recall when we first met I was with Lear I have a lot of experience on that electrification side as well albeit wiring and PCB boards and all that stuff. I think we're in pretty good shape there, but we also don't underestimate that or minimize that as we all come up the curve in a much higher volume environment and these type of electrodynamic products that we're going to -- we have to be ready for it. So that's a major focus of ours.\nOperator\nYour next question is from the line of Ryan Brinkman with JPMorgan.\nRyan Brinkman -- JPMorgan -- Analyst\n", "Hi. Thanks for taking my question, which is relative to the 2020 outlook slide. I know you're looking for company-specific factors, backlog and acquisition to roughly more than offset the end market headwinds to revenue. Can you please elaborate on that second point about the potential for margin expansion? What contribution margin are you assuming from the backlog revenue? And would it will be really be the decremental to softer volume from industry headwinds will be higher than the incremental on the backlog revenue? So when you consider that, what does that imply about the magnitude of the tailwind that you're expecting from lower cost in commodities? And how would you rate your visibility into those savings?\nJonathan Collins -- Executive Vice President & Chief Financial Officer\nSure. So maybe I'll just touch on the organic mix first. The piece that's related to the market is principally made up of the heavy vehicle segments. We're going to see a meaningful decline in the Class 8 market in North America where you would expect the downward contribution margin to be less than 20%. We've highlighted before that at mid-cycle, the heavy vehicle segment represents only about one-third of the commercial vehicle segment and it is the least profitable in that area. So it helps out a little bit there.\nHowever, the other part of the organic decline that's related to market is on the off-highway segment, where we would expect it to be above 20%. So I would say on balance, on a blend, you're going to see around 20% is what I would expect for the market declines. The backlog will come online at a comparable margin, which is why we still believe similar to what we indicated at the beginning of this year when we laid out an outlook for next year is that relatively flat top line organically and the negligible impact on the bottom line there.\nI think what we wanted to highlight with the organic or the inorganic cost synergies in the lower commodity cost is that both of those have trended better than we ex" ]
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What was the revenue growth rate for Meta in Q4 2020 compared to Q3 2020
s just the shift to online commerce, as well as the ongoing -- the shift to more spend on products versus services. In Q4, we also saw strength with sort of our full range of advertisers. We have seen sort of small- and medium-sized businesses come back and start getting strength in Q2 and Q3 or Q3, specifically. And then Q4, we also saw strength from some of our largest advertisers as well. So as you look out in 2021, I think we're just going to be facing tougher comps in the back half of the year. Some of those things related to the pandemic had the potential to revert, whether it's more consumer expenditure shifting toward services away from products. So that will make it a little bit of a tougher comp. And then you layer on top of that headwind to growth related to privacy-related headwinds. The biggest factor there is iOS 14. So we certainly anticipate growth, but we're just looking at tougher comps as we hit the back half of the year given really, most importantly, the strength that we saw this year and then, on top of that, the headwinds that we're seeing from some of the privacy changes. Operator Your next question comes from the line of Justin Post from Bank of America. Justin Post -- Bank of America Merrill Lynch -- Analyst Great. Thank you. I guess I'll ask about regulation. I know it's a tough topic. First, Mark, in your prepared remarks, you elevated a little bit competition with Apple. Is there anything going on with iOS 14 besides IDFA that maybe puts you in more direct competition with Apple? And then secondly, obviously, the FTC filed their case since the last earnings call. Maybe just open forum, any thoughts on that that you're able to share. Thank you. Mark Zuckerberg -- Chief Executive Officer Well, in terms of the competition with Apple specifically, I laid out three or four product focus areas. And with the exception of the work that we're doing on communities, which I think is quite separate from the work that they do, the other three areas, I think, are going to have very significant competitive overlap with Apple. In messaging, certainly, iMessage is the most popular service in the U.S., I think, because of the fact that they pre-install it and give their app several advantages that other apps don't have. In commerce and supporting small businesses, I think there, you have some of the iOS 14 changes that we think are going to be very problematic especially for small businesses. And then longer term, as we move toward building the next computing platform, I think we would expect to see them as more of a competitor there as well. So I do think that this is sort of shaping up that -- we face many competitors, right? There are a lot of competitors in the core social app work that we do. [Technical difficulty] Operator Excuse me. This is the operator. I apologize, but there will be a slight delay in today's conference. Please hold and the conference will resume shortly. Thank you for your patience. [Technical difficulty] Speakers, we are now connected. Mark Zuckerberg -- Chief Executive Officer Was there another question on that last one that I was supposed to answer? Dave Wehner -- Chief Financial Officer Well, there was a question about the FTC. Justin Post -- Bank of America Merrill Lynch -- Analyst Hey, guys, we're back. Dave Wehner -- Chief Financial Officer All right. Are we on now through this line? Operator Yes, you are connected. Dave Wehner -- Chief Financial Officer OK. Mark Zuckerberg -- Chief Executive Officer All right. So where did I lose you? Dave Wehner -- Chief Financial Officer I think you had covered the question of the dynamics related to the competitive landscape, and then there was a follow-on question around the FTC case and any thoughts that we have on that. I don't think we have anything we necessarily are commenting on at this point. Mark Zuckerberg -- Chief Executive Officer Yes, nothing on the case. I mean, on regulation overall, because I think some of the question was focused on that, the point that I would highlight is I actually think it would be very helpful to us an
[ "s just the shift to online commerce, as well as the ongoing -- the shift to more spend on products versus services. In Q4, we also saw strength with sort of our full range of advertisers. We have seen sort of small- and medium-sized businesses come back and start getting strength in Q2 and Q3 or Q3, specifically.\nAnd then Q4, we also saw strength from some of our largest advertisers as well. So as you look out in 2021, I think we're just going to be facing tougher comps in the back half of the year. Some of those things related to the pandemic had the potential to revert, whether it's more consumer expenditure shifting toward services away from products. So that will make it a little bit of a tougher comp.\nAnd then you layer on top of that headwind to growth related to privacy-related headwinds. The biggest factor there is iOS 14. So we certainly anticipate growth, but we're just looking at tougher comps as we hit the back half of the year given really, most importantly, the strength that we saw this year and then, on top of that, the headwinds that we're seeing from some of the privacy changes.\nOperator\nYour next question comes from the line of Justin Post from Bank of America.\nJustin Post -- Bank of America Merrill Lynch -- Analyst\nGreat. Thank you. I guess I'll ask about regulation. I know it's a tough topic.\nFirst, Mark, in your prepared remarks, you elevated a little bit competition with Apple. Is there anything going on with iOS 14 besides IDFA that maybe puts you in more direct competition with Apple? And then secondly, obviously, the FTC filed their case since the last earnings call. Maybe just open forum, any thoughts on that that you're able to share. Thank you.\nMark Zuckerberg -- Chief Executive Officer\n", "Well, in terms of the competition with Apple specifically, I laid out three or four product focus areas. And with the exception of the work that we're doing on communities, which I think is quite separate from the work that they do, the other three areas, I think, are going to have very significant competitive overlap with Apple. In messaging, certainly, iMessage is the most popular service in the U.S., I think, because of the fact that they pre-install it and give their app several advantages that other apps don't have. In commerce and supporting small businesses, I think there, you have some of the iOS 14 changes that we think are going to be very problematic especially for small businesses.\nAnd then longer term, as we move toward building the next computing platform, I think we would expect to see them as more of a competitor there as well. So I do think that this is sort of shaping up that -- we face many competitors, right? There are a lot of competitors in the core social app work that we do. [Technical difficulty]\nOperator\nExcuse me. This is the operator. I apologize, but there will be a slight delay in today's conference. Please hold and the conference will resume shortly.\nThank you for your patience. [Technical difficulty] Speakers, we are now connected.\nMark Zuckerberg -- Chief Executive Officer\nWas there another question on that last one that I was supposed to answer?\nDave Wehner -- Chief Financial Officer\nWell, there was a question about the FTC.\nJustin Post -- Bank of America Merrill Lynch -- Analyst\nHey, guys, we're back.\nDave Wehner -- Chief Financial Officer\nAll right. Are we on now through this line?\nOperator\nYes, you are connected.\nDave Wehner -- Chief Financial Officer\nOK.\nMark Zuckerberg -- Chief Executive Officer\nAll right. So where did I lose you?\nDave Wehner -- Chief Financial Officer\nI think you had covered the question of the dynamics related to the competitive landscape, and then there was a follow-on question around the FTC case and any thoughts that we have on that. I don't think we have anything we necessarily are commenting on at this point.\nMark Zuckerberg -- Chief Executive Officer\nYes, nothing on the case. I mean, on regulation overall, because I think some of the question was focused on that, the point that I would highlight is I actually think it would be very helpful to us an" ]
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What is the expected timeline for the production of 5-nanometer chips
automotive business. Now we reached that, and we are confident that we're going to pass the ASIL B qualification. I think that investment is behind us. But however, that's really it. I think that's basically -- if you view that as a barrier that we have to cross over to get in auto. But from an engineering development point of view, from a technology point of view, it's just similar to the CV2. Tore Egil Svanberg -- Stifel, Nicolaus & Company, Incorporated -- Analyst That's very helpful. And Fermi, you mentioned 5-nanometer. When should we expect products to be in production on 5-nanometer? Fermi Wang -- Chief Executive Officer Well, what I say is, we are planning to take our first 5-nanometer chip, but we haven't talked about the product plan, how we're going to -- what kind of product we are going to be used based on 5-nanometer. But based on history, you should expect that we're going to build 5-nanometer product across the board for auto, for security camera, for smart city, smart home, and it will be a family of chips. I think that we kind of basically say we are going to skip 7-nanometer, go to 5-nano directly as our engineering investment. But you should see that in the next few -- after -- when we think about 5-nano, we're going to provide much more detailed description about our plan for products with the 5-nanometer projects. Tore Egil Svanberg -- Stifel, Nicolaus & Company, Incorporated -- Analyst Sounds good. And one last question for Casey. Casey, the R&D is obviously something quite a bit here in the April quarter. Will it kind of flatten out, do you think a little bit for the remaining quarters? Or will we continue to see these types of step-ups? Kevin C. Eichler -- Chief Financial Officer Yeah. So again, we don't typically guide beyond one quarter. But what I'd say is you're not going to see a step function like that throughout the year. Like I said, there's some unusual things that come in like the payroll taxes and some of those that tend to feather out as you get further in the year. So I think you're going to see us continue to invest in the R&D, and our OpEx will stay fairly constant where we are today. But you're not going to see us back off R&D or really accelerate it much more. Tore Egil Svanberg -- Stifel, Nicolaus & Company, Incorporated -- Analyst Very helpful. Thank you very much. Operator Thank you. And this does conclude today's question-and-answer session. I would now like to turn the call back to Dr. Wang for closing remarks. Fermi Wang -- Chief Executive Officer And thank you for joining us today. I will talk to you the next time. Thank you. Bye. Kevin C. Eichler -- Chief Financial Officer Thanks. Operator [Operator Closing Remarks] Duration: 56 minutes Call participants: Louis Gerhardy -- Director of Corporate Development and Investor Relations Fermi Wang -- Chief Executive Officer Kevin C. Eichler -- Chief Financial Officer Adam Gonzalez -- Bank of America Merrill Lynch -- Analyst Matthew D. Ramsay -- Cowen and Company, LLC -- Analyst Ross Clark Seymore -- Deutsche Bank AG -- Analyst Joseph Lawrence Moore -- Morgan Stanley -- Analyst Quinn Bolton -- Needham & Company, LLC -- Analyst Sujeeva Desilva -- ROTH Capital Partners, LLC -- Analyst Charles Lowell Anderson -- Dougherty & Company -- Analyst Tore Egil Svanberg -- Stifel, Nicolaus & Company, Incorporated -- Analyst More AMBA analysis All earnings call transcripts
[ " automotive business. Now we reached that, and we are confident that we're going to pass the ASIL B qualification. I think that investment is behind us. But however, that's really it. I think that's basically -- if you view that as a barrier that we have to cross over to get in auto. But from an engineering development point of view, from a technology point of view, it's just similar to the CV2.\nTore Egil Svanberg -- Stifel, Nicolaus & Company, Incorporated -- Analyst\nThat's very helpful. And Fermi, you mentioned 5-nanometer. When should we expect products to be in production on 5-nanometer?\nFermi Wang -- Chief Executive Officer\nWell, what I say is, we are planning to take our first 5-nanometer chip, but we haven't talked about the product plan, how we're going to -- what kind of product we are going to be used based on 5-nanometer. But based on history, you should expect that we're going to build 5-nanometer product across the board for auto, for security camera, for smart city, smart home, and it will be a family of chips. I think that we kind of basically say we are going to skip 7-nanometer, go to 5-nano directly as our engineering investment. But you should see that in the next few -- after -- when we think about 5-nano, we're going to provide much more detailed description about our plan for products with the 5-nanometer projects.\nTore Egil Svanberg -- Stifel, Nicolaus & Company, Incorporated -- Analyst\nSounds good. And one last question for Casey. Casey, the R&D is obviously something quite a bit here in the April quarter. Will it kind of flatten out, do you think a little bit for the remaining quarters? Or will we continue to see these types of step-ups?\nKevin C. Eichler -- Chief Financial Officer\n", "Yeah. So again, we don't typically guide beyond one quarter. But what I'd say is you're not going to see a step function like that throughout the year. Like I said, there's some unusual things that come in like the payroll taxes and some of those that tend to feather out as you get further in the year. So I think you're going to see us continue to invest in the R&D, and our OpEx will stay fairly constant where we are today. But you're not going to see us back off R&D or really accelerate it much more.\nTore Egil Svanberg -- Stifel, Nicolaus & Company, Incorporated -- Analyst\nVery helpful. Thank you very much.\nOperator\nThank you. And this does conclude today's question-and-answer session. I would now like to turn the call back to Dr. Wang for closing remarks.\nFermi Wang -- Chief Executive Officer\nAnd thank you for joining us today. I will talk to you the next time. Thank you. Bye.\nKevin C. Eichler -- Chief Financial Officer\nThanks.\nOperator\n[Operator Closing Remarks]\nDuration: 56 minutes\nCall participants:\nLouis Gerhardy -- Director of Corporate Development and Investor Relations\nFermi Wang -- Chief Executive Officer\nKevin C. Eichler -- Chief Financial Officer\nAdam Gonzalez -- Bank of America Merrill Lynch -- Analyst\nMatthew D. Ramsay -- Cowen and Company, LLC -- Analyst\nRoss Clark Seymore -- Deutsche Bank AG -- Analyst\nJoseph Lawrence Moore -- Morgan Stanley -- Analyst\nQuinn Bolton -- Needham & Company, LLC -- Analyst\nSujeeva Desilva -- ROTH Capital Partners, LLC -- Analyst\nCharles Lowell Anderson -- Dougherty & Company -- Analyst\nTore Egil Svanberg -- Stifel, Nicolaus & Company, Incorporated -- Analyst\nMore AMBA analysis\nAll earnings call transcripts\n\n\n\n\n" ]
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Who passed new austerity measures despite protests?
Athens, Greece (CNN) -- Greek lawmakers voted to approve a new round of tough budget-cutting measures Thursday, despite a second day of angry protests in which one demonstrator died. Tens of thousands rallied outside the parliament building as lawmakers debated the unpopular measures, aimed at bringing down the country's huge national debt. After a peaceful start, violent clashes broke out between anarchist rioters and the police, and between the anarchists and some union demonstrators who wanted to keep the protest calm. Tear gas was fired into the crowd, while rocks and fire bombs were thrown. The protester who died was a member of the PAME workers' union, lawmaker Makis Voridis told parliament. Hospital officials told CNN he was a 53-year-old man who suffered cardiac arrest. The Greek minister for health said the demonstrator had been taken to an Athens hospital without a pulse and could not be revived, but he had no injuries. Earlier reports suggested he had been injured. Lawmakers approved the austerity measures by 154 in favor to 144 against, despite nationwide protests and a two-day strike that has gripped the country. The new bill is expected to lead to around 30,000 job losses and further cuts to wages and pensions for workers in the public sector. "We have no hope. The only hope we have is the strength of the people," said protester Vagelis Filezis, a civil engineer, before the vote. He said Europe's leaders were trying "to save the banks but they don't think about the people." And he warned Italy and Spain, which are also facing debt crises: "Look at us. This is where you will be in two to three years." Organizers had urged protesters from all over the country to come to Athens Thursday, suggesting the crowd could be larger than the 70,000-plus police estimated Wednesday. Organizers estimated the turnout Wednesday at 120,000, which would make it one of the biggest protests in the country in years. Police said there were about 40,000 people on the streets Thursday morning -- fewer than at the same time a day earlier -- and about 3,000 police officers. The mood early in the day was good-natured, but when violence erupted later it was unusual for the fighting that broke out between different groups of protesters,as well as confrontations with police. On Wednesday, clashes between protesters and police in front of the Greek parliament building left at least six protesters and 15 police officers injured, authorities said. At least 15 people were arrested. Some marchers Thursday accused the government of planting troublemakers in the crowd to spark violence. "They have never been caught," said teacher Thannasis Karametsus. "Why not?" Protesters aimed to shut down wide sectors of the country during the two-day national strike. "Don't bow your head, it's time for resistance and struggle," marchers chanted in the capital Wednesday as they gathered for the union-backed demonstration. "I'm here for my children and everyone else's children. Those punks in there have destroyed everyone's lives," said former railway worker Diamandis Goufas, 62, pointing at parliament. Greeks are angry at yet another round of planned austerity measures as Greece tries to bring down its stratospheric debt. Lawmakers are trying to cut government costs to reassure international backers it is doing enough to earn the bailout funds they have promised to pour into the country. European Union leaders are scrambling to minimize the effect of Greece's debt on their common currency, the euro. Over the weekend, finance ministers from the world's largest economies pledged their commitment to take "all necessary actions" to stabilize markets. They aim to keep banks well capitalized so they can weather the effects of any defaults by Greece or other indebted countries, such as Portugal, Spain, Ireland or Italy. But there appears to be a split between France and Germany -- Europe's two largest economies -- on how to do it. Germany has stressed that individual European states should inject capital into domestic banks that lack sufficient buffers. But analysts
[ "Athens, Greece (CNN) -- Greek lawmakers voted to approve a new round of tough budget-cutting measures Thursday, despite a second day of angry protests in which one demonstrator died. Tens of thousands rallied outside the parliament building as lawmakers debated the unpopular measures, aimed at bringing down the country's huge national debt. After a peaceful start, violent clashes broke out between anarchist rioters and the police, and between the anarchists and some union demonstrators who wanted to keep the protest calm. Tear gas was fired into the crowd, while rocks and fire bombs were thrown. The protester who died was a member of the PAME workers' union, lawmaker Makis Voridis told parliament. Hospital officials told CNN he was a 53-year-old man who suffered cardiac arrest. The Greek minister for health said the demonstrator had been taken to an Athens hospital without a pulse and could not be revived, but he had no injuries. Earlier reports suggested he had been injured. Lawmakers approved the austerity measures by 154 in favor to 144 against, despite nationwide protests and a two-day strike that has gripped the country. The new bill is expected to lead to around 30,000 job losses and further cuts to wages and pensions for workers in the public sector. \"We have no hope. The only hope we have is the strength of the people,\" said protester Vagelis Filezis, a civil engineer, before the vote. He said Europe's leaders were trying \"to save the banks but they don't think about the people.\" And he warned Italy and Spain, which are also facing debt crises: \"Look at us. This is where you will be in two to three years.\" Organizers had urged protesters from all over the country to come to Athens Thursday, suggesting the crowd could be larger than the 70,000-plus police estimated Wednesday. Organizers estimated the turnout Wednesday at 120,000, which would make it one of the biggest protests in the country in years. Police said there were about 40,000 people on the streets Thursday morning -- fewer than at the same time a day earlier -- and about 3,000 police officers. The mood early in the day was good-natured, but when violence erupted later it was unusual for the fighting that broke out between different groups of protesters,as well as confrontations with police. On Wednesday, clashes between protesters and police in front of the Greek parliament building left at least six protesters and 15 police officers injured, authorities said. ", "At least 15 people were arrested. Some marchers Thursday accused the government of planting troublemakers in the crowd to spark violence. \"They have never been caught,\" said teacher Thannasis Karametsus. \"Why not?\" Protesters aimed to shut down wide sectors of the country during the two-day national strike. \"Don't bow your head, it's time for resistance and struggle,\" marchers chanted in the capital Wednesday as they gathered for the union-backed demonstration. \"I'm here for my children and everyone else's children. Those punks in there have destroyed everyone's lives,\" said former railway worker Diamandis Goufas, 62, pointing at parliament. Greeks are angry at yet another round of planned austerity measures as Greece tries to bring down its stratospheric debt. Lawmakers are trying to cut government costs to reassure international backers it is doing enough to earn the bailout funds they have promised to pour into the country. European Union leaders are scrambling to minimize the effect of Greece's debt on their common currency, the euro. Over the weekend, finance ministers from the world's largest economies pledged their commitment to take \"all necessary actions\" to stabilize markets. They aim to keep banks well capitalized so they can weather the effects of any defaults by Greece or other indebted countries, such as Portugal, Spain, Ireland or Italy. But there appears to be a split between France and Germany -- Europe's two largest economies -- on how to do it. Germany has stressed that individual European states should inject capital into domestic banks that lack sufficient buffers. But analysts" ]
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What was the percentage increase in licensing and related revenue for the second quarter of 2020 compared to the same quarter last year
d new services for mobile technology including education, healthcare and industrial. The latest UNESCO figures claim that nearly 1.4 billion students around the world have shifted to remote study via mobile technology, in particular in emerging markets where wired broadband is not available. Furthermore, Forrester Research predicts that more than 1 billion virtual care visits are expected within the U.S. this year. The magnitude and the pace of adoption of these new services call for the persistent and expedited deployment of 5G networks where we believe there will be attractive opportunities for our strong technology portfolio. As I commented earlier, based on discussions with our customers, we expect to see a sizable production ramp and noticeable step up in royalty revenue for 5G base station RAN in the third quarter. Furthermore, COVID-19 brings forward new usage models for 5G, including Fixed Wireless Access, 5G-enabled PCs and V2X. With our latest CEVA-XC DSP portfolio, and our PentaG 5G-modem platform, we are well equipped and positioned to address these new usage models for incumbents and newcomers. Onto the geopolitical tension between China and the U.S., the existing export control rules do not directly apply to our current technologies developed in Israel and Europe. We continuously monitor developments on this front, and are prepared to adapt our business as required. A by-product of the trade tensions, the US government is looking to stimulate the use of Open RAN or O-RAN technologies for 5G mobile networks. O-RAN enables mobile operators to mix and match hardware and software components from different suppliers rather than use vertical solutions from a few tier-one OEMs. O-RAN dramatically reduced the entry barriers for software and hardware companies, the majority of which are US-based such as Intel, Facebook, CISCO, Microsoft, as well as new start-ups like Altiostar, Mavenir and Parallel Wireless. CEVA is aiming to play a pivotal role in the O-RAN space, using the power efficiency of our DSP platforms for the stringent run time and low latency requirements associated with baseband processing. We have gained a lot of experience and pedigree in the RAN space to be able to proliferate the supplier base. On the China front, the central government came out in March with a new ambitious plan called New Infrastructure. The plan highlights investments in seven areas, of which 40% to 50% of the investments are associated with 5G, AI and IoT. These are areas in which CEVA already has strong presence and deployments in China. We are continuously discussing with our major Chinese customers on how we can expand our presence in China based on this plan. So, in closing, our business in the first half of the year was robust despite the volatility and the uncertainty brought about by COVID-19. This affirms the strength of our Company, vision and business model. Furthermore, the current situation poses new opportunities for us to expand in O-RAN and China's New Infrastructure plan. While I'm satisfied with our first half performance and the opportunities ahead, the recovery from the pandemic is slower than was anticipated earlier in the year and the US China trade tensions poses additional uncertainty. We are therefore laser-focused on our efficiencies, productivity, and most importantly, our customer engagements. Our organization is agile, and alert to respond to any positive or negative development in the coming months. With that said, let me hand over the call to Yaniv for financials and guidance. Yaniv Arieli -- Chief Financial Officer Thank you, Gideon, I'll start by reviewing the results of our operations for the second quarter of 2020. Revenue for the second quarter was up 28% to $23.6 million, as compared to $18.4 million for the same quarter last year. It was the highest second quarter revenue we ever recorded. The revenue breakdown is as follows. Licensing and related revenue was approximately $13.5 million, reflecting 57% of our total revenues, 25% higher than $10.8 million for the second quarter of 2019. Royalt
[ "d new services for mobile technology including education, healthcare and industrial. The latest UNESCO figures claim that nearly 1.4 billion students around the world have shifted to remote study via mobile technology, in particular in emerging markets where wired broadband is not available.\nFurthermore, Forrester Research predicts that more than 1 billion virtual care visits are expected within the U.S. this year. The magnitude and the pace of adoption of these new services call for the persistent and expedited deployment of 5G networks where we believe there will be attractive opportunities for our strong technology portfolio.\nAs I commented earlier, based on discussions with our customers, we expect to see a sizable production ramp and noticeable step up in royalty revenue for 5G base station RAN in the third quarter. Furthermore, COVID-19 brings forward new usage models for 5G, including Fixed Wireless Access, 5G-enabled PCs and V2X. With our latest CEVA-XC DSP portfolio, and our PentaG 5G-modem platform, we are well equipped and positioned to address these new usage models for incumbents and newcomers.\nOnto the geopolitical tension between China and the U.S., the existing export control rules do not directly apply to our current technologies developed in Israel and Europe. We continuously monitor developments on this front, and are prepared to adapt our business as required. A by-product of the trade tensions, the US government is looking to stimulate the use of Open RAN or O-RAN technologies for 5G mobile networks. O-RAN enables mobile operators to mix and match hardware and software components from different suppliers rather than use vertical solutions from a few tier-one OEMs. O-RAN dramatically reduced the entry barriers for software and hardware companies, the majority of which are US-based such as Intel, Facebook, CISCO, Microsoft, as well as new start-ups like Altiostar, Mavenir and Parallel Wireless.\nCEVA is aiming to play a pivotal role in the O-RAN space, using the power efficiency of our DSP platforms for the stringent run time and low latency requirements associated with baseband processing. We have gained a lot of experience and pedigree in the RAN space to be able to proliferate the supplier base. On the China front, the central government came out in March with a new ambitious plan called New Infrastructure. The plan highlights investments in seven areas, of which 40% to 50% of the investments are associated with 5G, AI and IoT.\n", "These are areas in which CEVA already has strong presence and deployments in China. We are continuously discussing with our major Chinese customers on how we can expand our presence in China based on this plan. So, in closing, our business in the first half of the year was robust despite the volatility and the uncertainty brought about by COVID-19.\nThis affirms the strength of our Company, vision and business model. Furthermore, the current situation poses new opportunities for us to expand in O-RAN and China's New Infrastructure plan. While I'm satisfied with our first half performance and the opportunities ahead, the recovery from the pandemic is slower than was anticipated earlier in the year and the US China trade tensions poses additional uncertainty.\nWe are therefore laser-focused on our efficiencies, productivity, and most importantly, our customer engagements. Our organization is agile, and alert to respond to any positive or negative development in the coming months.\nWith that said, let me hand over the call to Yaniv for financials and guidance.\nYaniv Arieli -- Chief Financial Officer\nThank you, Gideon, I'll start by reviewing the results of our operations for the second quarter of 2020. Revenue for the second quarter was up 28% to $23.6 million, as compared to $18.4 million for the same quarter last year. It was the highest second quarter revenue we ever recorded. The revenue breakdown is as follows. Licensing and related revenue was approximately $13.5 million, reflecting 57% of our total revenues, 25% higher than $10.8 million for the second quarter of 2019.\nRoyalt" ]
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