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[ "vities primarily by R&D engineers and no manufacturing facilities. However, we intend to take advantage of our expertise in wireless, AI, and low-power designs to help our customers achieve their own sustainability goals.\nAs I stated above, we are focusing on Wireless IoT where our technologies can add resiliency and run time analytics to optimize energy and water utilization and to expedite the shift to renewable energy. We will also work with our base station RAN customers on next-generation DSP technologies that will serve their objective of lower heat dissipation and energy consumption. We will continue to periodically consult with our investors of their perspectives on sustainability. So in summary, CEVA is uniquely positioned to capitalize on the semiconductor momentum and market transformation toward digitization, AI, and connectivity.\nOur customer pipeline at the end of the year is historically high. We believe our key customers are keenly receptive to our products road map and priorities and willing to expand the scope of engagements with us. We expect 2022 to be an exciting year with growing momentum in revenue, EPS, and customer engagements. We are determined to continue to develop standout products and consistently grow our customer base and licensing engagements to scale our business.\nFinally, I would like to take this opportunity to thank all of our employees for their hard work and dedication, innovation, and fantastic execution. I would like to extend my thanks to our partners, suppliers, and to our shareholders for their confidence and support. We wish you all a healthy, happy, and prosperous year and please stay safe! With that said, I'll now turn the call over to Yaniv, who will outline our financials and guidance.\nYaniv Arieli -- Chief Financial Officer\nThank you, Gideon. I'll start by further reviewing our results of operations for the fourth quarter of 2021. Revenue for the fourth quarter was a record high at $34.1 million, up 21% compared to $28.1 million for the same quarter last year, our third sequential all-time high. Non-GAAP revenue was $34.2 million, up 22% year-over-year, $0.2 million higher due to the purchase price allocation adjustment associated with our Intrinsix's acquisition.\n", "The revenue breakdown is as follows, Licensing, NRE, and related revenue was $21.3 million, reflecting 63% of our total revenue, up 78% as compared to the fourth quarter of 2020 and just slightly below our third quarter 2021 record high. Royalty revenue was $12.7 million, reflecting 37% of our total revenue, down 21% from $16.1 million for the same quarter last year, but up 13% sequentially. Base station & IoT royalty revenue contributed $7.8 million in the quarter, up 21% year-over-year, including all-time record high contribution from our sensor fusion product line and continued growth and strength across our base station and IoT product lines overall. Gross margins were 83% on GAAP basis and 87% on non-GAAP basis, both higher than projected due to lower allocation of Intrinsix's NRE costs from R&D into cost delinquence expense line.\nNon-GAAP quarterly gross margin exclude approximately $0.3 million of equity-based compensation expenses and $1 million amortization of acquired assets associated with the Intrinsix acquisition and Immervision investment. Our total operating expenses for the fourth quarter was $26.6 million, over the high-end of our guidance, due to lower allocation of Intrinsix's NRE costs from R&D to the cost of revenue per our prior quarter guidance. Such shifts between the two expense line items may happen from time to time and are tied to the actual chip design work performed in the quarter. Opex also included aggregate equity-based compensation expenses of approximately $3.2 million, amortization of acquired intangibles of 1, and $0.3 million Intrinsix related deal costs.\nOur total operating expenses for the fourth quarter, excluding equity-based compensation amortization of intangible and deal costs were $22.4 million, over the high-end of our guidance, due to the same reasons I just stated" ]

[ "he line of Yang Bai from CICC. Please go ahead.\nYang Bai -- CICC -- Analyst\n[Foreign language] OK. Thank you, management. NetEase has continuously made efforts in the overseas market in recent years and has established several game developers overseas. What is our take on the pace of overseas investments in the future? Also, could you perhaps share some colors on the products in development? Thank you.\nWilliam Ding -- Chief Executive Officer\n[Foreign language]\nMargaret Shi -- Director, Investor Relations\nOverseas market is of great importance for NetEase. And as everybody knows that in the past year, we've not received any license approval overall in China. So we have to make the strategic choice to shift some of our R&D resources to the global market, the European markets to the Japanese or the Asian markets. So everybody knows that we have a very strong track record in game production.\nWe have very high R&D efficiencies, and we are now working very closely with many overseas developers to find a product that will be welcomed by the global game players. We actually do have a lot of products under development. And hopefully, you will see some of them being introduced to the market very soon. On June 2, everybody saw the success of Diablo that we have listed and I think it's been a very positive, very, very strong release of that game.\nThank you.\nOperator\nLet's take our next questions from the line of Thomas Chong from Jefferies.\nThomas Chong -- Jefferies -- Analyst\n[Foreign language] Thanks management for taking my questions. We have seen Internet companies highlighting about cost efficiencies, such as staff costs and marketing spending on the back of a global macro headwind these days. Can management share the thought about the outlook, about the operating expenses in sales and marketing, R&D and G&A? Thanks.\nWilliam Ding -- Chief Executive Officer\n[Foreign language]\nMargaret Shi -- Director, Investor Relations\nSo it's not -- the question about cutting costs, the question is about optimization of cost. Sometimes, throughout of development operation of our business, sometimes we do have -- we do cut costs in certain areas, but will also increase our investment spend in other areas. So NetEase will continue to optimize the way we spend the cost structure of the company. Only just because the weakness in the macro, it doesn't necessarily mean that we have to take certain actions to address that.\n", "NetEase, we think very long term, and we care about the sustainable long-term growth of the company.\nCharles Yang -- Chief Financial Officer\nAnd Thomas, it's Charles. Just to add a bit more. As you can see, we've always been very committed in R&D spending over the past couple of years, our head strong -- head count, total head count also remained relatively stable because for us, we think investing into talent, investing into technology is the key competence in us creating the world-class content.\nMargaret Shi -- Director, Investor Relations\nThank you, Thomas. Next question, please.\nOperator\nOK, thank you. We will take our next question from the line of Kenneth Fong from Credit Suisse.\nKenneth Fong -- Credit Suisse -- Analyst\n[Foreign language] Thank you, management for taking my question. What's management view on the domestic regulatory landscape and expectation on the Banhao approval? With a likely lower number of Banhao approved in the future, how will this change our game strategy, including genre IP investment, etc.?\nWilliam Ding -- Chief Executive Officer\n[Foreign language]\nMargaret Shi -- Director, Investor Relations\nSo I kind of mentioned that in the earlier question, one of the reasons we have to look abroad and be more active in expanding our user base overseas because of like Banhao in China. And secondly, it kind of tells you -- tells us that we have to value or cherish the domestic market even more because Banhao is a very precious resources now. So every Banhao we get, we have to work putting more effort to make sure every game we develop is launched to the market will be popular, will be welcomed by the game players" ]

[ "f increasing presence and capabilities in China, that has never changed. And other activities that one would have to move forward with 300-millimeter. I think we are making good progress across several fronts there, not to a point right now of needing to release. And -- but certainly, it remains in a strong direction of the Company, a strong direction of our Board of Directors, and with very substantial progress is being made.\nRajvindra Gill -- Needham & Company -- Analyst\nAnd last question from me. In terms of -- and then, I know, it's hard to assess, but the growth in RF-SOI in mobile, last year was pretty strong. We obviously have 5G smartphone kind of ramp going on. Any kind of impact that you're seeing over the last few weeks from your customers related to the coronavirus? The indirect impact that you're seeing? Or just kind of what you see -- what you see might see in the next quarter or so? Maybe perhaps curtailing the 5G smartphone ramp, any thoughts there would be helpful. Thank you.\nRussell Ellwanger -- Chief Executive Officer\nAs I stated, we stay very close with our customers. We have not yet seen any substantial reduction in forecasts or push out of orders. We did within Q1, as stated have $3 million to $5 million impact. It was coronavirus related. And that instance, it really dealt with some very specific back-end processing and packaging, that was impacted because of the reduction or not reduction due to the requirements that people would not come back to -- in certain regions -- to work and stay at home for longer than the Chinese New Year. And so that did have an impact. I don't know that that would continue. I -- it doesn't appear that it is. But that was a $3 million to $5 million impact, and it was from specific directions of people staying home to make sure that they stay safe, and that spread of the virus remains contained. That is no longer the case to my understanding for that specific area. But, no, we have really not seen it. I mean it's obvious that things can happen and things that we are not yet aware of, but we have not yet seen any reduction on and that's just the case.\nRajvindra Gill -- Needham & Company -- Analyst\nGreat. Thank you.\nOperator\nThe next question is from Achal Sultania of Credit Suisse. Please go ahead.\n", "Achal Sultania -- Credit Suisse -- Analyst\nHi, good afternoon. Just two questions. First on the RF mobile side. Obviously, my understanding is that you've got strong relationship with Skyworks and Qorvo on the RF side. Obviously, with all the US/China trade tensions, it seems like the Chinese companies are looking for alternative suppliers outside of the US in the RF space, specifically. So can you help us understand your exposure in that RF mobile space beyond some of the dominant US players. And then secondly on the silicon germanium side, can you give us some color around, my understanding is that your revenues in silicon germanium are trending around $30 million to $40 million a quarter. Is that the right number? And when you think -- when you talk about growth in 2020, is it fair to assume that first half run rate is similar to what we are seeing currently? And then we see 20% growth from that base as we go into second half of this year. Thank you.\nRussell Ellwanger -- Chief Executive Officer\nOkay. I'm sorry, could you tell me the number. I missed. And what was the number that you said?\nAchal Sultania -- Credit Suisse -- Analyst\nAround $30 million to $35 million per quarter in silicon germanium right now, in -- during 2019.\nRussell Ellwanger -- Chief Executive Officer\nOkay.\nAchal Sultania -- Credit Suisse -- Analyst\nAnd that going to, like, do we expect similar numbers in H1 of this year, and then we expect a 20% growth half over half as we go into H2 from that base?\nRussell Ellwanger -- Chief Executive Officer\nSo on that, let's see. In that range, for the first half, correct. And, yeah, breaking that range in the second half, exactly correct.\nOren Shirazi -- Chief Financial Officer, Senior Vice President of Finance\nYeah. Yes. And by the way, Russell said, the $136 million" ]

[ "ding two tier one customers better designing in the platform now. To summarize, the main growth drivers for analog IC business unit for 2020 and beyond, 5G is the most significant driver for RF business for this year and for the next few years. 5G impacts both our mobile business, with RF content is projected to be at 70% CAGR for the coming years according to Yole. And infrastructure, where we are already seeing silicon germanium orders increase for optical connections to serve 5G deployments around the world.\nRecovery from the inventory correction on optical 5G data center market, driving shipments in the second half of 2020 will provide good opportunity for additional growth this year. Looking beyond this year, we expect our 5G data center to continue along the rate of data transmission growth to the Internet which most industry analysts assume will continue at approximately 15% CAGR. In addition, automotive is a strong growth driver. In RF today, we have deployed RF radar in several vehicle models and are working now with several customers on LIDAR techniques that make use both of our silicon germanium as well as our new silicon photonics platforms for the future increasing number and capabilities of our time in these vehicles.\nAnd as mentioned, we are leading with our SiPho platform capabilities. In power ICs, our strong traction for the 65 nanometer 300 millimeter BCD platform in the market, provided us with a full funnel of opportunities that will wrap in 2020 and beyond and promise strong growth in power ICs for years to come, providing additional ROI for 300 millimeter capacity growth. We also see automotive as a main growth driver as previously discussed, the strong growth we experienced in 2019 from battery management electrical vehicles and we anticipate further growth as more of the automotive fleet moves to electric drive and as we deploy more advanced high voltage technologies such as the 140 volt non-SOI process.\n", "Moving to our sensors business unit. Despite organic revenue decline of about 20% in the industrial sensor market, predominantly a consequence of the trade war, we were able to compensate to a great extent to have a decrease of 4% year-over-year organic revenues. The said compensation was via the growth of our actually medical sensors market and our high-end visible camera market. This growth should continue in 2020. And with an expected recovery in industrial sensor market, we target a double-digit organic growth in this business in 2020. 2019 was an exciting year for our future, both in state-of-the-art technology developments and in customer engagements. As announced, we have released our 300 millimeter backside illumination hybrid bonding stack wafer technology with copper-to-copper electrical contacts at a pitch smaller than 2.5 micron, the smallest in the world. This technology allows a connection of a BSI sensor to a CMOS logic and analog wafer at the pixel level.\nWe won two major customers that are using this technology for the mobile time-of-flight market, both for face recognition and front-looking 3D applications. These products will grow international volume production in 2022. The same technology will be used with our existing customers for high-end photography market both in high-end DSLR and mirror less cameras and in cinematography. In addition, we engage with large optical fingerprint sensor providers on the development of under OLED and under LCD sensors, utilizing our high-performing CIS technologies and 200 millimeter fabs at the 0.18 micron technology node. These products are expected to ramp in the second half of this year and to further grow to high volumes in 2021 and beyond.\nLooking at our TOPS business unit, the core of our transfer flow activities in the TOPS unit are for the discrete market. This market was soft, especially in the second half of 2019. We are now beginning to see an increase in customer-forecasted demand. We have maintained and grown market share with our existing customers and have added new key customer engagements in 2019. We add value through, for e" ]

[ "ask your question. \nJohn Choi -- Daiwa Capital Markets -- Analyst\nThanks for taking my question. Just quickly, two questions here. On cloud computing, I understand that we had a pretty healthy growth. But right now, as the overall macro is kind of slowing down, we've been seeing some -- a little bit of delay of so-called the capex or IT budget being deployed.\nAre we likely seeing any of that? Or as we look into 2022, is the growth trend still intact? And secondly, just a quick follow-up on your international game strategy. If we look into your -- I mean, clearly, we've been doing a great job but mostly from a mobile standpoint of view. But if we extend our platform, particularly in console or more on the PC side, on the more of the casual, what is our strategy there? And should we be expecting more strategic investments or M&A and decide to acquire more IP? Thank you.\nJames Mitchell -- Chief Strategy Officer\nSo on the cloud question, our view is that the dominant trend is companies in China increasingly adopting infrastructure in the cloud, platform in the cloud and software in the cloud, and we think that trend continues with or without a faster or slower macroeconomic environment. Specifically on the point of CapEx bouncing around, I think that's true and I think that reflects the fact that in 2020, there was a high degree of uncertainty in the technology industry in China about the ability to continue purchasing servers and GPUs and smart NIC cards and so forth. And that caused some stockpiling, which I think has now been unwound. And the global supply chain seems to be moving to a more normal basis, at least from a sort of a regulatory perspective vis-a-vis the United States.\nSo I'd say, at this point in time, we think that Business Services will be less affected by regulation and macro fluctuation than Advertising. And then your question around console and PC, I wasn't sure I caught the nuance. I mean, obviously, we've been creating PC games for many years, more recently as the x86 architecture has converged between PC and console. We've started releasing games on console as well, including Pokémon UNITE most recently.\n", "And if you look at a number of what we refer to as sort of genre-leading specialty studios outside China, then the majority of them are actually console- and PC-centric, and they've developed a reputation and a reality for operating particularly good games within a particular genre on console and PC, and we're now supporting them to do that at bigger scale than before. In terms of IP, then generally speaking, IP matters more to mobile and perhaps a little bit less of PC outside China. The non-China PC gaming audience is a relatively engaged sophisticated audience that looks at reviews on Steam and Epic Game store and collects feedback from other players. And so what you can often see situations where our development team who works on one particular IP very successfully actually separate from that IP and create something else that is a brand-new IP but ends up being bigger and better.\nAnd stereotypically -- or classic example, the Epic Games where for a decade, they were associated exclusively with the Gears of War IP, but subsequently, they sold Gears of War and they focused on creating the Fortnite IP, which is even bigger and better than Gears of War.\nOperator\nThank you. Our next question comes from Alicia Yap from Citigroup. Please ask your question.\nAlicia Yap\nHi. Good evening, management. Thanks for taking my questions. I have two questions.\nThe first one is regarding your new versions of the CRM, SaaS, CDN. It seems like you will be launching a new version by the end of this year to provide a deeper integration with -- between the Tencent Meeting and also the WeCom. So how should we think about this upcoming online advertising opportunity within WeChat that could further expand and penetrate into other traditional industry vertical? And then second question, I guess, is there's a lot of Metaverse question tonight. So I guess just to follow up a little bit on this as related to your internationa" ]

[ "Athens, Greece (CNN) -- Greek Prime Minister George Papandreou will meet Monday with the leader of the country's main opposition party to discuss who will become the nation's next prime minister -- a day after an announcement that Papandreou he will step down amid the country's financial crisis. Papandreou's planned resignation -- announced by President Karolos Papoulias -- is contingent on the approval of the controversial 130 billion euro bailout deal. On Sunday, Papandreou met with Antonis Samaras -- the leader of the New Democracy party, Greece's leading opposition party -- and agreed to form a new government. During Monday's meeting, the two will discuss who will serve in the new government as well as who will be the next prime minister, according to a statement from the president. New national elections will be held sometime after the bailout is implemented, but no more details nor a timeline of future events were disclosed. Earlier Sunday, Samaras told reporters that once Papandreou resigns, everything will \"take its course\" and \"everything else is negotiable.\" The move appears to close one chapter in Greece's tumultuous political and economic saga, as Papandreou had become a lightning rod for critics for his leadership of the south European nation as it tackles a prolonged financial plight. It also paves the way for passage of an agreement that Papandreou negotiated October 26 with European leaders. The deal would wipe out 100 billion euros in Greek debt, half of what it owes to private creditors, and includes a promise of 30 billion euros to help the public sector pare its debts -- making the whole package worth a total of 130 billion euros ($178 billion). But Greece's turmoil is far from over. The bailout -- the second it has received from the European Union and International Monetary Fund -- would be accompanied by additional austerity measures such as slashing government jobs, privatizing some businesses and reducing pensions. It also comes at a time when Greece's economy -- and to some extent the global economy -- is still staggering. Though Greece ranks 32nd in terms of gross domestic product, experts say it wields a disproportionate influence internationally. Economists worry that a Greek default on its debt could pull down larger European economies -- particularly those of Italy and Spain, as well as struggling Portugal and Ireland. Eurozone finance ministers are scheduled to meet Monday in Brussels, Belgium. Within Greece, the bailout's passage would be a significant victory for Papandreou. ", "He has insisted repeatedly in recent weeks that it needs to be approved -- signaling that he'd be willing to resign as prime minister, a job he has held since 2009, as long as that happens. Earlier Sunday, Greece's president met ahead of a Cabinet meeting with all party leaders -- including Papandreou, who heads the socialist PASOK party, and Samaras. Finance Minister Evangelos Venizelos is likely to remain in his post as finance minister in a new government, sources told Greek television. Candidates for the prime minister's job include Petros Moliviatis and Loukas Papaimos, according to Greek television. The new government will have a life of four months, according to Greek television, citing sources, and elections will take place in early spring. On Monday -- in addition to a meeting between Papandreou and Samaras -- the Greek president will hold another meeting open to heads of all Greece's political parties. CNN's Diana Magnay, Jim Boulden and Andrew Carey in Athens and Matthew Chance and Hada Messia in Rome contributed to this report." ]

[ "There's the Amy Ray of the Indigo Girls: blending her voice with singing partner Emily Saliers on songs such as \"Closer to Fine\" and \"Galileo\" and writing songs that tap into the duo's shared folk-oriented touchstones. Amy Ray says playing with some musician friends brought out songs that \"felt very different from the Indigo Girls.\" Then there's Amy Ray the solo artist, letting out her inner Joe Strummer and Paul Westerberg. The two aren't mutually exclusive, of course. \"Emily and I are frustrated sometimes with any kind of box,\" Ray says during an interview at her manager's office near downtown Atlanta, \"because we want to experiment musically, and we do a lot of electric stuff. ... But the reality is that we are a folk band.\" However, Ray adds, her influences include artists who have come out of a punk mindset such as the Clash, the Replacements, the Pretenders and Patti Smith. \"At some point I was hanging around with the Butchies -- a band I ended up playing with a lot -- and it just brought out this thing in me ... and it felt very different from the Indigo Girls,\" she says. Which explains the appearance of \"Didn't It Feel Kinder\" (Daemon), Ray's third solo album. Watch Ray perform the song \"She's Got to Be\" » (Disclosure: Ray and I were contemporaries at Atlanta's Emory University, but we didn't know one another.) The songs on \"Kinder\" include \"Bus Bus,\" a scorching rocker about the longings felt while on tour; \"Who Sold the Gun,\" which alludes to a mass shooting, counterpointed by rousing major chords; and \"SLC Radio,\" which praises the support of a Salt Lake City radio station in the midst of \"LDS nation.\" Ray gives a great deal of credit to producer Greg Griffith for the album's raw sound and melodic ideas, and she adds that the musicians on the solo album helped guide the way the songs were presented. \"Something like 'Bus Bus,' I wanted this lead thing going on with a kind of raucous band, and the harmonies are very important but they are more of a bed that you're singing over rather than the duo,\" she says. \"I think the musicians I play with solo do a certain thing that the musicians we play with with the Indigo Girls don't do. It's just a different thing. ... ", "And it sort of steers my writing in some ways.\" A number of the solo songs do share the same activist outlook as Ray's songs with the Indigo Girls. \"SLC Radio,\" for example, is about KRCL-FM, which Ray describes as \"a really progressive community station.\" In the song, Ray, an out lesbian, sings \"Radio radio SLC fighting the good fight for me/ Boys and girls lend a hand, bend an ear in God's land.\" \"I was thinking about community radio in general, and I was thinking about Mormonism and the fabric of the country and how much you see when you're traveling ... and the idea that change comes, but it comes slow, and it comes one person at a time,\" she explains. But, she notes, \"The song is not totally taking Mormonism to task. I even say, 'I'm sending love to all the Mormons,' 'Keep the good things throw out the bad.' \" Respect flows both ways, she says. Ray's activism extends to the artist-centered Daemon Records, the label she founded in 1990. Though Daemon is the furthest thing from corporate -- Ray and the label's staff still stuff envelopes themselves -- she acknowledges that changes in the record business have forced her to adjust as much as any major label. Watch Ray on keeping the business going » \"For indie labels it was a big adjustment because we ended up with a lot of CDs on hand when downloading" ]

[ "nts. And as we manage through this situation and assess timing, our first priority will be to the safety and well-being of our staff and their families.\nLooking more broadly at 2020, we see demand for 5G-enabled devices and high-performance computing sparking a broader recovery in the market. Gartner forecasts that worldwide, mobile phones will see a modest increase this year versus a decline in 2019. Driving the majority of that increase are the 5G-enabled handsets, which Gartner predicts will account for 12% of all mobile phone shipments in 2020, increasing to 43% of all mobile phones in 2022. As a result, we expect to see a number of Onto Innovation markets expand in 2020.\nThe most obvious impact of this growth is in our specialty devices and advanced packaging segment. Underscoring this opportunity is our release from earlier in this -- in the month announcing the receipt of orders for 15 inspection systems from two customers rapidly expanding advanced packaging capacity to support wafer-level packaging of 5G devices. We see continued growth in these markets in 2020, driven by volume increases as well as additional devices migrating to advanced packaging. We also see 5G and high-performance computing, benefiting our advanced node segments in which leaders, such as SK Hynix, recently forecast 5G smartphones will drive a 25% increase in DRAM content per phone, while NAND will benefit from 20% increase per phone.\nAnd TSMC recently cited growing demand for their 5 nanometer process from 5G processors, RF front-end modules and advanced computing. We expect our advanced semiconductor nodes segment to grow modestly with sustained levels of logic foundry spending and a pickup in memory spending starting with DRAM. In conclusion, semiconductor markets are becoming more diverse every year. We see chip innovations and cameras, sensing and communications, enabling new customer products such as smart home, smart grids and wearable health monitors.\n", "We see innovations in the advanced nodes for both memory and logic, enabling data centers and AI engines to open up entirely new markets such as medicine, autonomous driving and energy. We see a growing number of customers increasing their focus on advanced packaging technology to unlock the full potential of new chip designs and more tightly integrated and high-performing form factors. Across the spectrum, Onto Innovation is an important partner to our customers. Our merger strengthens our ability to provide value-enhancing services to our customers, increase our pace of product innovation and deliver more comprehensive, integrated solutions to challenges further down our customers road map.\nWe are only at the very start of this journey but we are committed to maximizing our potential to the benefit of all of our stakeholders, customers, shareholders and our team. With that, I'll turn the call over to Steve Roth to review the financial highlights.\nSteven Roth -- Chief Financial Officer\nThanks Mike. Before I begin my financial remarks today, I want to remind you as usual the financial results discussed here will be provided on a non-GAAP basis. And that our non-GAAP presentation for the new merged company no longer excludes stock-based compensation as the former Rudolph financials did. In addition, as detailed in our last conference call, Rudolph was deemed the financial acquirer in the merger.\nAnd therefore, the combined financial results presented today represent the results of Rudolph for the full fourth quarter but only the results of former Nanometrics since the closing of the merger on October 25. I recognize that this partial quarter makes comparability of prior period somewhat difficult and I'll try to bridge those differences for comparative purposes to the prior periods. As Mike mentioned, our reported fourth-quarter revenue was $120.6 million, above the midpoint of our guidance. That revenue excludes both $10 million of Nanometrics October shipments and $1.7 million of deferred revenue that would have rolled into the quarter but was eliminated in the merger accounting.\nTheref" ]

[ "A Georgia man who spent a year in jail for nonpayment of child support -- despite the fact he has no children -- has been cleared of the debt, his attorney said Tuesday. Frank Hatley was ordered to make back payments even after he learned a teenager wasn't his son. Frank Hatley, 50, spent 13 months in jail for being a deadbeat dad before his release last month. A judge ordered him jailed in June 2008 for failing to support his \"son\" -- a child who DNA tests proved was not fathered by Hatley. Last week, Cook County Superior Court Judge Dane Perkins signed an order stating, \"defendant is no longer responsible for paying any amount of child support.\" The order permits the state's Office of Child Support Services to close its file on Hatley. \"We're satisfied with the result for Mr. Hatley, but still troubled by the state's monumental lapse of judgment in this case,\" attorney Sarah Geraghty with the Atlanta-based Southern Center for Human Rights told CNN in a written statement. Hatley did not immediately return a call from CNN Tuesday. His story dates back to 1986, when Hatley had a relationship with Essie Lee Morrison, who gave birth to a son. According to court documents, Morrison told Hatley the child was his, but the two ended their relationship shortly after the child was born. The couple never married and never lived together, the documents said. When the child turned 2, Morrison applied for public support for the child. Under Georgia law, the state, can recoup the cost of the assistance from a child's non-custodial parent. For 13 years, Hatley made payments to the state until learning in 2000 that the boy might not be his. A DNA test that year confirmed the child was not fathered by Hatley, court documents said. He returned to court and was relieved of any future child support payments, but was ordered to pay more than $16,000 he owed the state before the ruling. Since 2000, Hatley paid that debt down to about $10,000, Geraghty said. Court documents showed he was jailed for six months in 2006 for falling behind on payments during a period of unemployment, but afterward he resumed making payments, continuing to do so even after he lost another job and became homeless in 2008. But last year he became unable to make the payments and was jailed. ", "The argument for keeping Hatley liable for the back payments, according to the attorney who represented him in 2000, was that he signed a consent agreement with the Office of Child Support Services. The court agreed that Hatley had to comply with the consent agreement for the period he believed the child was his son, said attorney Latesha Bradley. But many, including Cook County Sheriff Johnny Daughtrey, didn't think Hatley's incarceration was fair, given that the child was not his. \"I knew the gentleman's plight and didn't know how to help him,\" Daughtrey told CNN last month. When the Southern Center for Human Rights visited the jail earlier this year, Daughtrey told them about Hatley's case. Hatley was released from jail last month after Perkins ruled he was indigent and should not be jailed for failing to make the payments. The Georgia Department of Human Services, which includes the Office of Child Support Services, plans to propose legislation in the next session of the state Legislature that would prevent similar situations in the future, said agency spokeswoman Dena Smith. Two things still remain to be cleared up for Hatley, Geraghty said -- lifting the child-support holds on his driver's license and his income tax. It remains unclear whether he will be reimbursed for the $6,000 in payments he made since 2000, she said -- so far, he has not been. Cook County, Georgia, is in the south-central part of the state, about 200 miles south of Atlanta." ]

[ "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" ]

[ "ey're going to be more expensive due to higher component costs. But at the same time, it looks like you guys have proven that there is a market for low- cost geographies with phones like iPhone SE. So how do you see these two different segments within the smartphone market evolving over the next one to three years? And then I had a follow-up for Luca.\nTim Cook -- Chief Executive Officer\nAgain, I want to stay away from commenting about future products. But generally, I think it's important when you think about 5G is to look around the world at the different deployment schedules. And some of those look very different perhaps than what you might be seeing here. And so, that's very important. In terms of the price, I wouldn't want to comment on the price of handsets that aren't announced.\nKrish Sankar -- Cowen and Company -- Analyst\nGot it. No worries, Tim. And then I have a follow-up to Luca. Opex as a percentage of sales for March looks like about 15% higher than in your prior quarters. Kind of curious how much of that is part of it is driven by some of your Intel modem asset purchases or TV+ in the opex or how do we think about it on a go-forward basis?\nLuca Maestri -- Senior Vice President & Chief Financial Officer\nYeah, I think we felt good about our opex results because they were at the low end of our guidance range, but clearly, we want to make all the necessary investments in the business and from -- in terms of the new services, not only for TV+, but all the new services that we launched during 2019, this is a period where we're making the necessary investments in advertising and marketing and that level of investment is reflected in our opex results. And also as you correctly stated, we completed the acquisition of the Intel baseband business during the December quarter. And so, we had -- we reflected the run rate of the expenses related to that business partially during the quarter after the completion of the transaction. And we -- that is a very important core technology for the Company. So we will continue to make all the necessary investments also there. There is a third category of expenses that affected the December quarter and is the fact that our revenue was very strong. And we have certain variable expenses, for example, credit card fees that are associated with the higher volume and of course, impacted our opex results.\n", "Tejas Gala -- Senior Analyst, Corporate Finance and Investor Relations\nThanks, Krish. Can we have the next question please?\nOperator\nThat will be from Mike Olson with Piper Sandler.\nMike Olson -- Piper Sandler -- Analyst\nAfternoon. Thanks for taking the questions. So slightly different take on an earlier question on Wearables and that is -- what impact do you think Wearables is having on driving people into the Apple ecosystem? You mentioned 75% of watch buyers are new to the Apple Watch, but many of them new to Apple overall. I'm sure a lot of existing iPhone, iPads or Mac users are going to be Wearables customers, but do you think Wearables bring people into the ecosystem to buy other devices in a material way?\nTim Cook -- Chief Executive Officer\nI think that -- Michael, it's Tim. With each Apple product that a customer buys, I think they get tighter into the ecosystem, because they like -- that's the reason that they're buying into it is they like the experience -- the customer experience. And so, from that point of view, I think each of our products can drive another product. I would think in that case, it's more likely that the iPhone comes first. But there is no doubt in my mind that there is some people that came into the ecosystem for the Watch.\nMike Olson -- Piper Sandler -- Analyst\nOkay. And then I think you recently mentioned that augmented reality will pervade our entire lives. And I'm wondering if you could share your thoughts about how you think it starts to impact our lives more significantly? For example, will the inflection point in AR come from gaming or industrial usage or some other category. In other words, where will the average person, kind of, first feel the impact " ]

[ "BEIJING, China (CNN) -- North Korea, formally called the Democratic People's Republic of Korea, is also known as the Hermit Kingdom for a good reason. Chinese border guards patrol in Jilin province across from the North Korean border on March 21, 2009. For decades, it has been shrouded by a veil of secrecy that has prevented us from better understanding this important nation. As journalists we seek out the realities of life there, beyond the myths and hype, but that is difficult because the DPRK is generally inaccessible to journalists. The gap between reality and illusion remains profound. Journalists, such as the two Americans being detained in North Korea, do travel to the border between China and North Korea to get a sense of what life is like in the isolated nation of 22 million people. The circumstances surrounding the journalists' arrest are still unclear. \"North Korea is such a difficult country to enter for a foreign reporter that the temptation to slip across the frozen river border is considerable,\" said former CNN correspondent Mike Chinoy, author of \"Meltdown: The Inside Story of the North Korean Nuclear Crisis.\" \"If that's what they did, however, it was extremely foolhardy and really pushing their luck.\" China and North Korea share a 1,415-kilometer (880-mile) border that mainly follows two rivers. The Yalu River defines the border on the northwest, the Tumen River on the northeast. By land, the two countries are linked by seven road crossings and four railway points. Over the years, I have visited three towns on the Chinese side of the border. From a narrow river crossing at the border town of Tumen, Koreans cross on foot and in trucks. Those going back into North Korea carry bags full of food and household wares, even bicycles. Some of those coming into China ferry logs and minerals. From across the Yalu River in China's Dandong City in October of 2006, I had a glimpse of Sinuiju, a North Korean border town of some 350,000 people. Using a long camera lens, I saw school children learn to roller skate, and residents celebrating what looked like a wedding. Still the city's decrepit appearance hinted at stagnation and isolation. It was a stark contrast from the Chinese city, which was ablaze in neon lights and a bustling commerce and trade. ", "North Korea's public face is one of smiling children, clean streets, manicured gardens, spectacular scenery and a stoic people united under the aegis of Kim Jong Il, known among Koreans as the \"Dear Leader.\" I saw it up close twice, in 1996 and 2002, when I had the chance to visit the most reclusive nation on earth. We were typically greeted by polite officials and smiling children and invited to watch spectacular performances with a cast of thousands. North Korea, however, remains isolated, diplomatically and economically, led by an erratic leadership that behaves out of fear and insecurity. Diplomatic sources in Beijing suggest that China is getting fed up with North Korea's inability to preserve social stability and with its erratic behavior in the multi-national efforts to deal with North Korea's nuclear program. Publicly, however, China sticks to the official line, often calling the two nations' ties as close as \"lips and teeth\" -- one cannot function without the other. In my two visits to North Korea, I have detected conflicting signs -- one, of social instability and another of a tentative desire to experiment with reforms. In 2002, the government tolerated some quasi-private businesses, raised civil servants' salaries and deregulated prices of some commodities. But much of these tentative efforts to change seem to have been aborted and the country remains isolated and poor. What emerges is a nation, now considered a nuclear threat, desperately seeking respect and economic aid. That picture is now intertwined with the two detained U.S. journalists, Chinoy said. \"It will be interesting to see how the case is handled. North Korea has been in a generally more bellicose mood lately,\" said Chinoy, who is currently a senior fellow at the Pacific Council on" ]

[ "ey're going to be more expensive due to higher component costs. But at the same time, it looks like you guys have proven that there is a market for low- cost geographies with phones like iPhone SE. So how do you see these two different segments within the smartphone market evolving over the next one to three years? And then I had a follow-up for Luca.\nTim Cook -- Chief Executive Officer\nAgain, I want to stay away from commenting about future products. But generally, I think it's important when you think about 5G is to look around the world at the different deployment schedules. And some of those look very different perhaps than what you might be seeing here. And so, that's very important. In terms of the price, I wouldn't want to comment on the price of handsets that aren't announced.\nKrish Sankar -- Cowen and Company -- Analyst\nGot it. No worries, Tim. And then I have a follow-up to Luca. Opex as a percentage of sales for March looks like about 15% higher than in your prior quarters. Kind of curious how much of that is part of it is driven by some of your Intel modem asset purchases or TV+ in the opex or how do we think about it on a go-forward basis?\nLuca Maestri -- Senior Vice President & Chief Financial Officer\nYeah, I think we felt good about our opex results because they were at the low end of our guidance range, but clearly, we want to make all the necessary investments in the business and from -- in terms of the new services, not only for TV+, but all the new services that we launched during 2019, this is a period where we're making the necessary investments in advertising and marketing and that level of investment is reflected in our opex results. And also as you correctly stated, we completed the acquisition of the Intel baseband business during the December quarter. And so, we had -- we reflected the run rate of the expenses related to that business partially during the quarter after the completion of the transaction. And we -- that is a very important core technology for the Company. So we will continue to make all the necessary investments also there. There is a third category of expenses that affected the December quarter and is the fact that our revenue was very strong. And we have certain variable expenses, for example, credit card fees that are associated with the higher volume and of course, impacted our opex results.\n", "Tejas Gala -- Senior Analyst, Corporate Finance and Investor Relations\nThanks, Krish. Can we have the next question please?\nOperator\nThat will be from Mike Olson with Piper Sandler.\nMike Olson -- Piper Sandler -- Analyst\nAfternoon. Thanks for taking the questions. So slightly different take on an earlier question on Wearables and that is -- what impact do you think Wearables is having on driving people into the Apple ecosystem? You mentioned 75% of watch buyers are new to the Apple Watch, but many of them new to Apple overall. I'm sure a lot of existing iPhone, iPads or Mac users are going to be Wearables customers, but do you think Wearables bring people into the ecosystem to buy other devices in a material way?\nTim Cook -- Chief Executive Officer\nI think that -- Michael, it's Tim. With each Apple product that a customer buys, I think they get tighter into the ecosystem, because they like -- that's the reason that they're buying into it is they like the experience -- the customer experience. And so, from that point of view, I think each of our products can drive another product. I would think in that case, it's more likely that the iPhone comes first. But there is no doubt in my mind that there is some people that came into the ecosystem for the Watch.\nMike Olson -- Piper Sandler -- Analyst\nOkay. And then I think you recently mentioned that augmented reality will pervade our entire lives. And I'm wondering if you could share your thoughts about how you think it starts to impact our lives more significantly? For example, will the inflection point in AR come from gaming or industrial usage or some other category. In other words, where will the average person, kind of, first feel the impact " ]

[ "The photograph is a jarring image that shows Nazi Party members, shovels in hand, digging up graves of American soldiers held as slaves by Nazi Germany during World War II. Members of the Nazi Party are forced to dig up mass graves of U.S. soldiers while American GIs look on. While the men dig up the site, U.S. soldiers investigating war crimes stand over them. Two crosses with helmets placed atop them -- the sign of a fallen soldier -- are visible. Two Germans are knee deep in mud. Another, with a handlebar mustache, has the look of a defeated man. The bodies of 22 American soldiers were found in at least seven graves, according to the photographer. On the back of the photo is written, \"Nazi Party members digging up American bodies at Berga.\" Berga an der Elster was a slave labor camp where 350 U.S. soldiers were beaten, starved, and forced to work in tunnels for the German government. The soldiers were singled out for \"looking like Jews\" or \"sounding like Jews,\" or dubbed as undesirables, according to survivors. More than 100 soldiers perished at the camp or on a forced death march. It was on this day six decades ago, April 23, 1945, when most of the slave labor camp soldiers were liberated by advancing U.S. troops. The emaciated soldiers, many weighing just 80 pounds, had been forced by Nazi commanders to march more than 150 miles before their rescue. Watch survivor break down in tears over liberation » The new photograph was likely taken in May or June 1945 when U.S. war crimes investigators combed Berga. It was donated earlier this month to the U.S. Holocaust Memorial Museum by Jim Martin and his family, whose father, Elmore \"Bud\" Martin, is believed to have snapped the picture as part of the war crimes investigation team. The photo and dozens of others sat for years in Jim Martin's closet. Some of the photos, including graphic images of American corpses, were placed on record at the National Archives years ago. See shocking photos of the slave camp » But the image of Nazi Party members digging up graves doesn't appear to be part of that collection. Martin said he was proud to hand over the photos. \"People have to see these. This is something that's history and it belongs with something that's historical to tell that story. It doesn't belong in my closet.\" ", "\"To be honest, I'm kind of sorry I haven't done it sooner. We didn't realize what it was.\" Elmore Martin, who won a Silver Star for his valor in capturing images during the war, was 28 when he shot the photographs. Before the war, he worked as a photographer for the St. Paul Dispatch and Pioneer Press. Martin's son said his dad, who died several years ago, struggled to keep a job when he returned home. \"I now see where it all started,\" he said. What Elmore Martin and the war crimes soldiers seen in the photo couldn't have known that day was how the case would evolve. The two Berga commanders -- Erwin Metz and his superior, Hauptmann Ludwig Merz -- were tried for war crimes and initially sentenced to die by hanging. But the U.S. government commuted their death sentences in 1948, and both men were eventually released in the 1950s. One other Berga commander, Lt. Willy Hack, was executed, but not by the United States. He died by hanging, justice carried out by the Soviets. Jim Martin said his father would have been upset at the freeing of the Berga commanders after the atrocities he documented. \"He knew it happened and to see that these people were released would be pretty devastating.\" Efraim Zuroff, who has spent nearly 30 years hunting Nazis responsible for the Holocaust, said the U.S. government commuted the sentences and freed hundreds of war criminals like those at Berga after the war, as the Cold War began to intensify. \"They were more concerned about keeping out Communists than admitting victims of the Nazis" ]

[ "ing in the market and the opportunities ahead of us. Despite the challenges of the past year, many caused by the global pandemic, we are well positioned for long-term success. We are on the precipice of a massive 5G build-out that will provide a strong long-term tailwind for our business. Recent commentary by the largest telecoms and equipment manufacturers has been unanimous. 5G is gearing up and we should begin seeing the accelerated ramp in the second half of calendar year 2021, with the build-out continuing for five years or many more thereafter.\nThe factors leading to this 5G growth include T-Mobile's acceleration postpaid [Phonetic], universal and competitive 5G deployments for all carriers, including AT&T, which is expected to spend $24 billion a year on its network. This gives entry into the marketplace with an FCC requirement to deploy 70% of the U.S. population by June 2023. And finally, government spending or government sponsored rural fiber broadband initiatives being rolled out at the federal and state levels throughout the U.S. There are some potential hurdles that could slow the ramp-up, including the success of the C-band auction completed in February for more than $81 billion, which could limit some carriers financial resources to deploy it.\nThe second hurdle relates to supply chain shortages discussed by the 5G manufacturers, particularly a lack of semiconductors. We will keep a close eye on these developments with the U.S. leading Europe, but remain confident we're at the door of a major 5G expansion in the quarters and years ahead. In addition, the Biden administration has proposed nearly $2 trillion dollar bill, which includes upgrades to traditional infrastructure like U.S. highways and bridges, and we'll also made significant investments in non-traditional areas that should benefit EnerSys directly, such as the electric grid, EV charging and high-speed broadband. While it is far from a done deal, there is bipartisan support for several areas of the build that we are prepared to act on.\n", "Our strategic initiatives outlined in our Investor Day nearly two years ago are worth repeating. One, to accelerate higher margin maintenance free Motive Power sales with NexSys iON and NexSys PURE; two, to grow the portfolio of products in our Energy Systems business, particularly in telecom, with fully integrated DC power systems and small cell site powering solutions which will accelerate our growth from 5G; third, to increase TPPL capacity, particularly for transportation market share and our Specialty business and finally, to reduce waste through the continued rollout of the EnerSys Operating System. In addition, we are now adding our Energy System plus fast-charging to the above initiatives. We feel it is a core competency from decades of experience charging electric forklifts, and we believe it represents an immense opportunity. We will work hard executing each of these areas and to deliver a long-term value our customers and shareholders deserve.\nWith that, I'll now ask Mike to provide further information on our fourth quarter results and go-forward guidance.\nMichael J. Schmidtlein -- Executive Vice President, Finance and Chief Financial Officer\nThanks, Dave. For those of you following along on our webcast, we have provided, the information on Slide 9 for your reference. I am starting with Slide 10. Our fourth quarter net sales increased 4% over the prior year to $814 million due to a 4% increase from volume and 2% from currency gains net of the 2% decrease in pricing.\nOn a line of business basis, our fourth quarter net sales in Energy Systems were up 11% to $349 million and Specialty was up 16% to $132 million, while Motive Power revenues were down 6% to $333 million. Motive Power suffered an 8% decline in volume along with a 1% decrease in pricing, net of a 3% increase in FX. The prior year, Motive Power fourth quarter revenues benefited from our recovery of the September 2019 fire in our Richmond, Kentucky facility. Energy Systems had a 12% increase from volume and a 2% improvement from currency net of a 3" ]

[ "are these growth investments mainly a 2022 phenomenon? Or would you expect them to -- I mean, I guess, outside of the U.S.\nsemiconductor capacity expansion, I mean, would you expect some of the growth investments this year in Advanced Surface Technologies to continue into next year?\nMilt Childress -- Executive Vice President and Chief Financial Officer\nWell, you hit the big one. The big one that we're expecting is the -- what's happening in the U.S. in the semiconductor industry. So if you exclude that, then the way I would describe it is we'll always be investing in growth ahead of the growth.\nSo there's always going to be some element of that. It just happens to be a little bit more significant, given where we are currently in this segment. So I think that's the way I would describe it.\nJustin Bergner -- Gabelli and Company -- Analyst\nOK. Great. That's helpful. And switching back to costs, how would you describe where we stand today, the relative headwinds associated with the three major cost components, inflationary cost of materials, labor and freight? And how is that view of those different headwinds maybe evolved over the last three months?\nMilt Childress -- Executive Vice President and Chief Financial Officer\nWell, I'll just add context, and then I'll invite Eric to jump in. And I'm going to give you a little walk through from where we were last year. Last year, we had really good experience more than covering cost increases during the first half of the year. And then in Q3, we still were fine.\nQ4, we were -- it became a little bit more challenging. And then I would say, in this quarter, the challenge was more significant overall because we're seeing not only material cost increase, but we're seeing the effects of wage increases and continued freight increases. And now with what's going on in China and the ports being locked up and what's happening in Ukraine, we think it's likely that those pressures will continue to affect the economy, which is one of the reasons why we have not adjusted guidance, as I mentioned earlier. So that's kind of a little bit of a look back at last year and then the trends this year.\nEric Vaillancourt -- President and Chief Executive Officer\n", "Yes. So if you think about it this way, we implemented price increases in January 1 in the heavy-duty truck market. We did it again in March, and we have another one announced for June 1st, and the rest of our business is July 1st. So I think we've caught up in general, other than the heavy-duty truck market.\nAnd I think we're caught up now as long as things don't go crazy again in the next quarter. The other thing that's happening, and it's a smaller effect, is just a little bit more inefficiency. And it's really just due to supply chain. When things aren't available, you're not as efficient as you were before.\nSo you're really moving around the plant more often and able to have the lines -- larger runs or things like that. So there's a little bit of inefficiency that's piled in there. It's not price. We're trying to capture that.\nAs supply chain improves, that will improve as well.\nJustin Bergner -- Gabelli and Company -- Analyst\nGreat. That's very helpful color. One last question. You called out corporate expense being up, and I wasn't sure if you were trying to suggest this is sort of a new higher run rate or that you're trying to suggest it's not a new higher run rate.\nAnd then in the description, you mentioned acquisition divestiture expenses and restructuring expenses, but I thought that's not part of corporate in your adjusted EBITDA calculation. So just any clarity there?\nMilt Childress -- Executive Vice President and Chief Financial Officer\nYes. I'll take the last question first because it's a good question and can create some confusion. So corporate expenses, when we report the GAAP -- the total number, and it is correct that the M&A portion that goes into corporate expenses that resulted in some increase year over year is adjusted out for adjusted EBITDA. But when we talk about corporate expenses, we're talking about all expenses.\nAnd so" ]

[ "shaping a better future for everyone, the advances in technology needed to unlock the potential of artificial intelligence and how materials engineering will enable the industry's new PPACt playbook to advance power, performance, area, cost and time to market.\nI also announced Applied's new 10-year goals and road map for environmental sustainability, which is part of our commitment to grow our business responsibly and make possible a better future. Having covered our long-term perspective in detail at that event, today, I'm going to focus my comments on current market dynamics and provide additional insights into our product portfolio and business momentum. Starting with the market environment, we remain mindful of global economic concerns and that consumer spending is a potential headwind for many sectors, including the electronics industry. With that said, demand for semiconductors has strengthened over recent months.\nAs the world adapts to the challenges created by the pandemic, several major technology inflections are being accelerated. Work from home, home schooling and online retail are driving investments in cloud data centers and communications infrastructure. Many organizations are building stronger business continuity plans and increasing the use of automation and IoT technologies. And because AI has the potential to transform entire industries, its adoption remains nondiscretionary for many companies.\nIn wafer fab equipment, we expect overall foundry/logic spending to grow this year even with soft demand in specialty nodes that serve automotive and industrial markets. At the leading edge, we see a strong commitment from customers to build out their fabs and aggressively drive their R&D road maps. This gives us confidence these levels of spending are sustainable in 2021 and beyond. As I've described before, with the slowing of traditional 2D Moore's Law scaling, there will be a transition from general purpose computing to customized solutions tailored for specific applications or workloads.\nRecent announcements by leading systems companies illustrate this inflection very well. Custom design silicon and diversification of architectures play to the strengths of the foundries and underpin their ongoing investments. In memory, we see investments for the year growing slightly faster than in foundry/logic as customers push forward with their technology road maps. We also see the growth rate in DRAM being very similar to NAND.\n", "Against this backdrop of a strengthening demand, our Semiconductor Systems revenues are up 18% on a trailing 12-month basis, and at the midpoint of our fourth-quarter guidance will be up 25% for our fiscal year. Next, I'll explain what's driving our outperformance today and how, by focusing on our customers' highest value problems, we are positioned to grow faster than our markets over the next several years. The process complexity required to produce leading-edge transistors and interconnects continues to grow and new innovations in materials and structures are fundamental to driving higher performance and lower power consumption. This plays directly to the strengths of Applied's traditional leadership areas, namely creating and modifying materials and structures.\nFor example, our deposition businesses, CVD, PVD and epi, generated more than $5.2 billion of revenue in calendar 2019 and according to VLSI's data gained eight points of market share. In our growth businesses that focus on shaping and analyzing materials and structures, we have strong momentum. We are the fastest-growing company in etch, even though we don't currently serve the dielectric market segment. At the midpoint of our guidance, our etch revenues will be up nearly 30% this fiscal year.\nSince we introduced our Sym3 system in 2015, we have shipped more than 5,000 chambers and we recently introduced Sym3 Y, which is the most advanced etch system we've ever built. This system provides extremely high materials selectivity, as well as precise depth and profile control needed to form the densely packed, high-aspect-ratio structures " ]

[ "ns.\nSamik Chatterjee -- J.P. Morgan -- Analyst\nGot it. That's very helpful. Chris, if I can just follow-up on the datacom side. I think you talked about the 5G fronthaul demand moderating in China. How should we think about your capacity plans? I think you'd outlined doubling capacity on the datacom chipset side, are you maybe still kind of on track to do that given some of the moderation in demand? And then what are the broader implications here for the telecom group and should we expect to see some softness in telecom as kind of broadly seeping through the weakness you're seeing in China in 5G rollouts?\nAlan Lowe -- President and Chief Executive Officer\nYeah, I think -- this is Alan, Samik. I think what we said in the last call was that we've seen a slowdown or a pause in the deployment of 5G. And I think leading up to that period of time there was a euphoria of 5G rollout and so I think that we're kind of going through some inventory burn of datacom chips in 5G that are being deployed now and radio base stations are being deployed in China just to a lesser degree than we had expected at the end of last year.\nThat said, I think that there will be a significant amount of radio base stations ship in China, very significant and we'll start seeing the 5G pick up as that inventory drops off. That said, the hyperscale demand is very strong and we have very differentiated products in both our EMLs and what I talked about on our DMLs 53 Gigabaud and so we see a lot of traction as hyperscalers are moving to that higher-speed datacom transceiver utilizing our state of the art EMLs and now DMLs.\nAnd so, I think we're optimistic for the demand as that capacity comes online. And so, I think it was two quarters ago, we said we're going to double the wafer capacity and we're on track to do that later this year. And we think it will be consumed as well because we do have -- as I said, we do have a growing backlog of multi-quarters and so we do have demand that we need to satisfy. And as we bring on that capacity, our datacom business will ramp.\nChris, do you want to take the telecom part of that?\nChris Coldren -- Senior Vice President, Strategy and Corporate Development\n", "Yeah. I mean, I don't think we -- don't think the same factors that are driving the softness in China 5G are necessarily driving a slowdown in telecom. In fact, I think as Alan said, the 5G was very aggressive upfront as China, it set national goals around base station deployments, etc. I think the telecom guys are just trying to keep up with that very strong pace.\nAnd the telecom market, I think a question earlier had asked about it being very strong today, I counter with -- it's mixed today that we've had over the past year some areas of strength, certainly in some of the ACO and 100 gig solutions but ROADMs have been slow over the past year and we saw a pickup this past quarter getting back to sort of like a two year ago levels, if you will.\nAnd so, the telecom market, we believe, as Alan had highlighted in the prepared remarks, is really prepared to take off or accelerate once the world is able to travel and get out and install these new networks. And the 5G challenges that are happening in China, we believe are just temporary in nature, that there is still a lot more 5G to go in China and there will be a lot of telecom deployed in China, outside of China to support the 5G that's going in globally.\nOperator\nAnd our next question comes from Rod Hall from Goldman Sachs. Please go ahead with your question.\nRod Hall -- Goldman Sachs -- Analyst\nYeah. Hey, good morning, guys. Thanks for the question. I wanted to start off with the $6 million of manufacturing push and just double check that -- well, for one thing, it sounded like, Alan, that was in telecom, but also is down in your guidance. So did you expect to get the $6 million back in the guidance? And I have a follow-up.\nAlan Lowe -- President and Chief Executive Officer\nYeah, it was telecom. And whether some of that demand went to other suppliers or not is not clear. I'd say that certainly on the ACO we're -- which " ]

[ "list by the St Louis Business Journal for its 2022 Corporate Philanthropy and Innovation and Philanthropy award. One item in common for all of these endeavors and achievements is the fact that they span the globe. From Israel to Spain and on to China, India, U.S., and beyond, ICL employees are leading, innovating, and improving conditions on earth through their sustainability efforts. Finally, I would like to wrap up my portion of today's call by reviewing Slide 11.\nWhile this has been unusual year so far, we have continued to focus on the future and our long-term specialty strategy and we will continue to do so as this allows ICL to strengthen its leadership position in comparison to its more commodity based peers. Our performance in the quarter reaffirms our specialty strategy. And our strong balance sheet allows us to focus on business expansion opportunities in this area including the ability to grow through M&A, investments in R&D, capacity, and new products among others. We do not have clarity as to how the global macro environment will play out for the remainder of 2022.\nHowever, for the second half of the year, we expect to continue to leverage our position as a global provider of specialty chemical solutions and to reap additional benefit from our Brazilian business as the Southern Hemisphere enters its key planting season. We also expect to see continued profitability from our businesses such as our YPH joint venture in China and our polysulphate operations in the United Kingdom, as well as our metal magnesium business all which had negative contribution in the past. We will also continue to innovate in areas like production for LFP batteries and across the food and agricultural end markets. Especially during this time of food crisis, it is important for us to do our part to help innovate and find solutions for the challenges around the world.\nWhile we are currently at the top part of the commodity cycle and are seeing great results, we must remember that this is a temporary high and then we need to keep our eye on the ball and continue to focus on a strong future of long-term cash generation and value creation for our shareholders. As always, I want to thank the entire ICL family of employees spread out across the globe for all their hard work and contributions as we delivered record results once again. This quarter, we are celebrating 100 years of history of our company and feel proud that we broke our all-time sales and profitability records once again. And with that, I will turn the call over to Aviram.\nAviram Lahav -- Chief Financial Officer\n", "Thank you, Raviv, and to all of you for joining us today. While you've already seen Slide 13, I would like to call out a few additional highlights. Second quarter adjusted operating income of $1,139 million was up more than 380% and adjusted operating margin of 39.5% was up dramatically from 14.6% in the second quarter of last year. For the quarter, adjusted net income of $751 million was up more than 450% year over year.\nIf you will turn to Slide 14, you will see that many of the macro trends we saw in the first quarter continued into the second. Global growth remained strong even as inflation continued to soar in most countries and both commodity and grain prices remained high. The situation in Ukraine has not been resolved and it seems as if each day brings changes and in some cases even greater uncertainty. There have been limited relief from the supply chain disruptions for ICL and others around the world.\nHowever, our supply chain procurement and logistics teams have worked tirelessly to overcome these challenges and we have continued to leverage our advantageous production locations and the global supply chain capabilities. In addition, currencies have continued to fluctuate with the U.S. dollar surging to its highest level in nearly two decades, at times hovering its parity with the euro. On slide 15, you can see prices for potash and sulfur continues to trend higher during the second quarter while phosphoric acid prices taper and freight rates declined slightl" ]

[ " 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" ]

[ "th 8% on the Banking side, 10% organic on Cap Markets. I know there were some items pulled forward. But can you just touch on, especially the pipeline on the banking side, when you think about how well Modern Banking Platform has been doing and the demand we're hearing about from just end markets and financial services for tech, in general? What kind of growth do you see that potentially being able to generate over the next several years when you see that kind of demand on the banking and the products you offer? And then maybe just quickly touch on the strength in Cap Market's revenue.\nGary Adam Norcross -- Executive Chairman and Chief Executive Officer\nYes. Darrin, I'll start. We'll let Bruce add on to this. I mean, we couldn't be more excited about what we see going on in Banking and Capital Markets, both. I'll remind you, we started this journeyalmost five years ago as we started really embracing cloud computing, and then we started really leaning in on next-generation capabilities that I mentioned when I was talking to Tien-Tsin about and all the investments we've made. So you're now seeing the results of that. Our pipeline continues to grow. You're also seeing record quarters being put up by the sales team in record years, year after year. If you'll remember in Banking, especially, this journey started well over three years ago, and you've seen that growth rate move from low single digits to mid-single digits.\nAnd now it's performing consistently in the upper single digits. So we feel great about the business. We feel great about our solution set. The TAM is very broad because, obviously, we're not just a domestic player in the U.S. We can expand out into international markets as well in global markets. So we've got a really bright future with this group. And frankly, it's where the industry is moving, more importantly. Capital Markets, as I said in my prepared remarks, couldn't be prouder of the team of what they've done. When you go back to 2015, you had a business that was growing about negative 2%.\n", "We've repositioned the portfolio. We invested heavily in product and solutioning. We started going -- and we expanded outside of traditional customers because what we found is there was a lot of market that needed those kind of capabilities, and you're now seeing the results. That's a very, very clean quarter for Capital Markets. I mean, there was a two percentage point tailwind on license renewals. But once again, what a great part of that business is those licenses are term in nature. And so you get those bumps. But even if you adjust that out, just really, really strong results.\nBruce F. Lowthers -- President\nYes. I'd just add on to Gary a little bit here. I think, again, we started this several years ago. We really had a strategy around how we were going to accelerate growth in those verticals, obviously, before Worldpay became part of the organization. And even to the question earlier, we focused on how do we cross-sell. We have this big broad set of assets that we wanted to be able to cross-sell into our client bases. And our teams have really rallied around that. They've done an excellent job of building out the product set, building out how people consume them and put us in a very good position.\nAs Gary mentioned, our pipeline has been excellent. Sales execution has been at an all-time high. Yet again, after an all-time high last year, Capital Market is same thing, a lot of is pretty crazy. Probably the other comment I would add is, as we've gone through these projects over the last several years, while our capital was originally on data center consolidation and some of those things, as we've come to a close of those, we're taking that capital and redeploying it in new products and accelerating our new products to meet the challenges of our customers.\nAnd we stand today very excited about the opportunities to continue to grow, to continue to cross-sell. We see lots of TAM expansion as we're moving into these markets. So we feel very comfortable that we can continue to grow this business at a very healthy clip." ]

[ "usiness will ramp.\nChris, do you want to take the telecom part of that?\nChris Coldren -- Senior Vice President, Strategy and Corporate Development\nYeah. I mean, I don't think we -- don't think the same factors that are driving the softness in China 5G are necessarily driving a slowdown in telecom. In fact, I think as Alan said, the 5G was very aggressive upfront as China, it set national goals around base station deployments, etc. I think the telecom guys are just trying to keep up with that very strong pace.\nAnd the telecom market, I think a question earlier had asked about it being very strong today, I counter with -- it's mixed today that we've had over the past year some areas of strength, certainly in some of the ACO and 100 gig solutions but ROADMs have been slow over the past year and we saw a pickup this past quarter getting back to sort of like a two year ago levels, if you will.\nAnd so, the telecom market, we believe, as Alan had highlighted in the prepared remarks, is really prepared to take off or accelerate once the world is able to travel and get out and install these new networks. And the 5G challenges that are happening in China, we believe are just temporary in nature, that there is still a lot more 5G to go in China and there will be a lot of telecom deployed in China, outside of China to support the 5G that's going in globally.\nOperator\nAnd our next question comes from Rod Hall from Goldman Sachs. Please go ahead with your question.\nRod Hall -- Goldman Sachs -- Analyst\nYeah. Hey, good morning, guys. Thanks for the question. I wanted to start off with the $6 million of manufacturing push and just double check that -- well, for one thing, it sounded like, Alan, that was in telecom, but also is down in your guidance. So did you expect to get the $6 million back in the guidance? And I have a follow-up.\nAlan Lowe -- President and Chief Executive Officer\nYeah, it was telecom. And whether some of that demand went to other suppliers or not is not clear. I'd say that certainly on the ACO we're -- which is a part of that, that just moved into the Q3 guidance. And so, yeah, whatever we think is not gone to other competitors is contemplated in our guidance.\nRod Hall -- Goldman Sachs -- Analyst\n", "Okay. So it's something less than the $6 million, Alan...\nAlan Lowe -- President and Chief Executive Officer\nYeah.\nRod Hall -- Goldman Sachs -- Analyst\nJust to be clear, I guess.\nAlan Lowe -- President and Chief Executive Officer\nYes.\nRod Hall -- Goldman Sachs -- Analyst\nOkay. And then, the second thing I wanted to ask about was, I just want to come back to the Coherent deal. One of the things that it looks to our partner is definitely manufacturing overlap, at least in some places. I'm curious if the synergies you guys have talked about contemplate consolidation in manufacturing or is it still too early to bog through all that in detail and that's still a possibility down the road.\nAlan Lowe -- President and Chief Executive Officer\nYeah. We have a synergy target that we talked about two weeks ago and we said that two-thirds of that will come from COGS. We have to get through the innovation and planning process to really critically pinpoint the plans to get those synergies. I mean, some of them will come from supply chains, some will come from manufacturing overlap, to your point, but the details of that still need to be worked out as we get closer to that integration planning phase of the deal.\nI think my excitement around the Coherent deal is around getting the combined larger companies to that model that we talked about earlier, but it's also about putting two incredibly talented teams together to accelerate the innovation engine because photonics is really playing a key role in a lot of the long term megatrends and I think the combination of the two companies really puts us at the forefront of that.\nRod Hall -- Goldman Sachs -- Analyst\nGreat. Okay. Thanks, Alan. Appreciate it.\nAlan Lowe -- President and Chief Executive Officer\nThanks, Rod.\nOperator\nAnd our next question comes from John Marchetti from Stifel. Please go ah" ]

[ ". And so we feel really, really great about both categories. And as Luca kind of said during the preamble or opening comments, we -- our results are really strong for iPhone around the world.\nAnd so it's been a very, very strong cycle. And yet we're -- the penetration on 5G is obviously still very, very low. And so we feel really good about the future of the iPhone.\nShannon Cross -- Cross Research LLC -- Analyst\nOK. And maybe if you can talk a bit about China, up 58%, where are you seeing the growth? What are you hearing from customers there? How is this -- actually, 58% is not sustainable, but how sustainable is the strength?\nTim Cook -- Chief Executive Officer\nIt was an incredibly strong quarter. It set a June quarter revenue record for Greater China for us, and so we're very proud of that and doing the best job we can to serve customers there. We had a particularly strong response to the 12 Pro and the 12 Pro Max. Those results were particularly strong.\nAnd if -- but if you look at the balance of our products, we also set June quarter records for wearables, home, and accessories for Mac and for services. So it was sort of an across-the-board strength. And we're seeing plenty of new customers come to the market. For example, Mac and iPad, about two-thirds of the customers who bought in the last quarter were new to that product.\nFor the Apple Watch, that number was 85%. And so we could not be happier with the results.\nShannon Cross -- Cross Research LLC -- Analyst\nWas the 85% China or overall?\nTim Cook -- Chief Executive Officer\n85% was China. Yes. I was talking about, specifically, the numbers I referenced were specifically for China.\nLuca Maestri -- Chief Financial Officer\nAnd then, Shannon, for the world, the Watch is 75%.\nShannon Cross -- Cross Research LLC -- Analyst\nRight. Great. Thank you so much.\nTejas Gala -- Director, Investor Relations, and Corporate Finance\nYes. Thanks, Shannan. Can we have the next question, please?\nOperator\nThank you. We'll take our next question from Amit Daryanani with Evercore. Please go ahead.\nAmit Daryanani -- Evercore ISI -- Analyst\n", "Perfect. Thanks a lot for taking my question. I have two as well. I guess, first off, Luca, I was hoping you could maybe talk a little bit more about the gross margins and maybe the expectations you laid out for September.\nI think sequentially, it implies it's down a hundred basis points or so. So maybe just touch on what are the puts and takes there would be helpful because I think historically, September tends to be flattish, maybe even up a little bit gross margin number for you folks.\nLuca Maestri -- Chief Financial Officer\nYes. I think it's important to go back to the Q3 results. Right? It's 43.3%. And one of the things that I mentioned is that in addition to getting really good cost savings on a sequential basis, we also had a very high mix of services as part of the total, and particularly, with advertising doing really, really well because of the rebound that we saw from the COVID lockdowns a year ago.\nAnd so as we move forward sequentially, we do expect a different mix, and so that drives the guidance that we provided, which, again, as you know, it's significantly higher than just a year ago. For example, a year ago, we were at 38.2%, so almost 400 basis points of expansion on a year-over-year basis. Right? And so I think it's important to take that into account, just a different mix.\nAmit Daryanani -- Evercore ISI -- Analyst\nGot it. No. Absolutely. I don't think anyone expected gross margins to be north of 40% just quickly for you, folks.\nSo that is impressive. If I could follow up on Services, and I know you called out the 33% growth this quarter as a bit of an aberration. The compares were easier. But as you look at your services growth rate over the last four quarters, let's just say, what do you think is enabling this growth? Is it you're able to have a higher ARPU more monetization of your installed base? Or is your installed base growing? I'm curious, which one is bigger? And then over time, how do you think those two components stack up f" ]

[ "Seventh graders at Ron Clark Academy became an overnight sensation during the presidential election when their YouTube performance of \"You Can Vote However You Like\" catapulted them to online stardom. \"The higher the expectations, the higher the results,\" says Ron Clark, seen here with his students. Now, their creative and scholastic talents have proved the students to be more than just \"one hit wonders.\" Academy students showcased their poetry and writings for CNN's documentary \"Black in America 2,\" hosted by Soledad O'Brien. Cultivating student creativity is just one of the goals of academy founder Ron Clark, an enigmatic educator known for his unconventional teaching methods. Under his strict tutelage, students at Ron Clark -- who are predominantly African-American -- are expected to excel in all subjects and maintain a high standard of respect for their peers and teachers. \"I'm teaching an eighth-grade curriculum to fifth-graders,\" says Clark. \"Some people say my expectations of the kids, academically, is too high, but the higher the expectations, the higher the results.\" But with high academic expectations come an equally high quotient for fun. It's become one of Clark's trademarks: singing and dancing to popular rap and R&B songs during class to get the kids engaged. \"My first day at Ron Clark Academy, I thought all the teachers were psychopaths,\" says seventh-grader Jai Springs. \"I thought Ron Clark was going crazy. He was up in front of the kids on desks, he was dancing. ... I never saw a teacher get up on a desk and dance. But now I'm used to it, so I get up on the desk and dance too,\" says Jai. Clark, formerly a schoolteacher from South Carolina, founded the academy with money he earned from his book titled The Essential 55, which detail Clark's 55 golden rules for success -- in and out of the classroom. Clark was invited to be a guest on the Oprah Winfrey show after winning Disney Teacher of the Year Award in 2001. Oprah believed so much in the well-mannered Southern school teacher from South Carolina that she encouraged him to write the book. Later she promoted The Essential 55 on her show, prompting it's ascension to New York Times bestseller list. Together with co-founder Kim Bearden, Clark transformed a decaying factory in a rough part of Atlanta, Georgia, into a state-of-the-art educational model for middle schools across the country. ", "Soon after the school opened its doors in 2008, a Christmas package from Winfrey arrived for Clark in the form of a $365,000 grant, or \"a thousand dollars for each day of the year,\" as Oprah referred to it in the letter. Then came the elections, with a tight presidential race between Sens. Barack Obama of Illinois and John McCain of Arizona. Inspired by rapper T.I.'s hit song \"Whatever You Like,\" Clark's seventh grade class penned their own lyrics and dance moves. The students' performance carried a message: Cast your ballot because you support a candidate's policies rather than just his skin color. When they perform the song, half the seventh grade class touts the virtues of GOP's McCain while the other half root for Democrat Obama: \"Obama on the left. McCain on the right. We can talk politics all night. And you can vote however you like.\" The students \"can talk politics with the best of them,\" says Clark. Video clips of the kids performing have garnered over 15 million hits on YouTube. \"We got lots of media attention. But when the media arrived to the school they realized the song is not the story, it's the kids,\" says Clark. One of Clark's credos is teaching a \"global curriculum\" with a heavy emphasis on current events. Himself an avid world traveler, Clark believes it's essential for his students to travel to other countries to develop an understanding and appreciation of the world in" ]

[ "In the sunbathed schoolyard of the Shmisani Institute for Girls in Amman, Jordan, principal Sanaa Abu Harb makes an announcement over the speaker system. Iraqi students at the Shmisani school in Amman gather around a teacher. One in 5 students there is Iraqi. \"All Iraqi girls come outside now. All Iraqi girls. Iraqi girls only!\" she repeats several times, making sure the message is clear and waving away Jordanian pupils attracted by the commotion. Dozens of girls in green apron-like uniforms pour out into the courtyard and cluster on the top level of a stone staircase overlooking a concrete playground. Harb wants the CNN crew to see how many Iraqi refugee girls her school is accommodating. This school year, she says, 145 students are Iraqi -- roughly 20 percent of the students at this state-funded institution -- with another 40 Iraqi children on a waiting list. Watch Iraqi girls describe a long way from home » The reason behind the jump in the number of Iraqis at the school is a new government policy: For the first time since the start of the Iraq war, Jordan is allowing all Iraqi children -- regardless of refugee status -- to enroll in state-funded schools. Simply, this means that even illegal refugees with no paperwork can send their kids to school with no questions asked. The move is cementing a massive population shift in the Middle East. More than 2.2 million Iraqis have fled the violence in their homeland, most of them seeking refuge in neighboring Jordan and Syria, according to humanitarian officials. Jordanian Minister of Education Khalid Touqan says he expects Jordan to accommodate 40,000 to 50,000 Iraqi students this year. That's more than double the number of Iraqi children enrolled in public school two years ago. Harb, on the front line of the phenomenon, says the influx is putting a strain on her school. Even with some U.N. and U.S. aid to Jordan, there's still not enough money. \"We need more teachers here, more resources, more buildings, more chairs for all Iraqi students and our students,\" she says. In a nearby neighborhood, in the study room of the Ahmed Toukan School for Boys, a handful of Iraqi kids talk of their experience living far from home. Seated at a rectangular table covered with a red and white tablecloth, the boys tell stories of horror and displacement. ", "Eighteen-year-old Qutaiba lost five immediate family members before moving to Jordan to try to live a normal life. Matter-of-factly and with a straight-ahead stare, he repeats the number: \"Five members.\" Most of the boys and young men from Iraq have missed several years of school -- up to a four-year educational gap that will delay not only their high school graduation, but also their entry into the workforce. All say, though, that they feel lucky to have gotten out, even if the violence in their country means always having to be on the move, ready to live far from home and away from loved ones. \"It's not strange for me to be in the middle of people I don't know,\" says eleventh grader Ziad Tarek Al Shamsi. \"I had friends in Iraq when I was small, I left them. In America, I left them. I came here, I left them.\" He pauses: \"But you have to miss your country.\" The United Nations High Commissioner for Refugees estimates up to 250,000 school-age Iraqi children are in Jordan. Many of them are enrolled in private institutions. But as families run out of money they had when they left Iraq, they turn to public schools. Even so, more than a month into the new academic year, fewer Iraqi families than first anticipated enrolled their kids in schools this year. According to the charity Save the Children, 21,000 Iraqi children have so far enrolled in Jordanian classrooms. As a result, the government extended the deadline for student applications and cut down on the required paperwork for Iraqi families. The lower registration" ]

[ "ns.\nSamik Chatterjee -- J.P. Morgan -- Analyst\nGot it. That's very helpful. Chris, if I can just follow-up on the datacom side. I think you talked about the 5G fronthaul demand moderating in China. How should we think about your capacity plans? I think you'd outlined doubling capacity on the datacom chipset side, are you maybe still kind of on track to do that given some of the moderation in demand? And then what are the broader implications here for the telecom group and should we expect to see some softness in telecom as kind of broadly seeping through the weakness you're seeing in China in 5G rollouts?\nAlan Lowe -- President and Chief Executive Officer\nYeah, I think -- this is Alan, Samik. I think what we said in the last call was that we've seen a slowdown or a pause in the deployment of 5G. And I think leading up to that period of time there was a euphoria of 5G rollout and so I think that we're kind of going through some inventory burn of datacom chips in 5G that are being deployed now and radio base stations are being deployed in China just to a lesser degree than we had expected at the end of last year.\nThat said, I think that there will be a significant amount of radio base stations ship in China, very significant and we'll start seeing the 5G pick up as that inventory drops off. That said, the hyperscale demand is very strong and we have very differentiated products in both our EMLs and what I talked about on our DMLs 53 Gigabaud and so we see a lot of traction as hyperscalers are moving to that higher-speed datacom transceiver utilizing our state of the art EMLs and now DMLs.\nAnd so, I think we're optimistic for the demand as that capacity comes online. And so, I think it was two quarters ago, we said we're going to double the wafer capacity and we're on track to do that later this year. And we think it will be consumed as well because we do have -- as I said, we do have a growing backlog of multi-quarters and so we do have demand that we need to satisfy. And as we bring on that capacity, our datacom business will ramp.\nChris, do you want to take the telecom part of that?\nChris Coldren -- Senior Vice President, Strategy and Corporate Development\n", "Yeah. I mean, I don't think we -- don't think the same factors that are driving the softness in China 5G are necessarily driving a slowdown in telecom. In fact, I think as Alan said, the 5G was very aggressive upfront as China, it set national goals around base station deployments, etc. I think the telecom guys are just trying to keep up with that very strong pace.\nAnd the telecom market, I think a question earlier had asked about it being very strong today, I counter with -- it's mixed today that we've had over the past year some areas of strength, certainly in some of the ACO and 100 gig solutions but ROADMs have been slow over the past year and we saw a pickup this past quarter getting back to sort of like a two year ago levels, if you will.\nAnd so, the telecom market, we believe, as Alan had highlighted in the prepared remarks, is really prepared to take off or accelerate once the world is able to travel and get out and install these new networks. And the 5G challenges that are happening in China, we believe are just temporary in nature, that there is still a lot more 5G to go in China and there will be a lot of telecom deployed in China, outside of China to support the 5G that's going in globally.\nOperator\nAnd our next question comes from Rod Hall from Goldman Sachs. Please go ahead with your question.\nRod Hall -- Goldman Sachs -- Analyst\nYeah. Hey, good morning, guys. Thanks for the question. I wanted to start off with the $6 million of manufacturing push and just double check that -- well, for one thing, it sounded like, Alan, that was in telecom, but also is down in your guidance. So did you expect to get the $6 million back in the guidance? And I have a follow-up.\nAlan Lowe -- President and Chief Executive Officer\nYeah, it was telecom. And whether some of that demand went to other suppliers or not is not clear. I'd say that certainly on the ACO we're -- which " ]

[ "A federal court Thursday struck down ordinances passed by Hazleton, Pennsylvania, that were intended to limit where illegal immigrants could live and work. Last year, Hazleton passed the Illegal Immigration Relief Act Ordinance, which would have fined landlords who rented to undocumented immigrants and would have penalized companies that employed them. Under another law, tenants would have had to prove they were citizens or lawful residents, register with the city and pay for a rental permit in order to receive an occupancy permit. The ordinances were copied by other cities. The court ruled that Hazleton cannot enact any ordinances dealing with illegal immigration because they conflict with the supremacy clause of the U.S. constitution. \"Hazleton, in its zeal to control the presence of a group deemed undesirable, violated the rights of such people, as well as others within the community. Since the United States Constitution protects even the disfavored, the ordinances cannot be enforced,\" U.S. District Judge James M. Munley wrote in the 206-page opinion. Mayor Lou Barletta, who spearheaded the opposition, said he will appeal the ruling. \"This fight is far from over,\" he told reporters outside the courtroom. \"Hazleton is not going to back down. ... We will take it all the way to the Supreme Court if we have to.\" Watch mayor decry \"injustice\" » Barletta drafted the act last year after \"a high-profile murder, the discharge of a gun at a crowded city playground, and drug busts\" allegedly involving illegal immigrants, he wrote on his Web site, www.smalltowndefenders.com. \"Illegal aliens in our city create an economic burden that threatens our quality of life,\" he wrote. \"With a growing problem and a limited budget, I could not sit back any longer and allow this to happen. I needed to act!\" Hazleton's population was 23,000 in 2000. Since then, it has risen to an estimated 30,000 to 33,000, with many of the newcomers being Mexican immigrants, according to Munley. The American Civil Liberties Union of Pennsylvania was among several groups that filed the suit on behalf of Hazleton residents, landlords and business owners. The groups contended that only the federal government has the right to regulate immigration or to deprive residents of the rights to equal protection. In addition, they said, the ordinances violated state and federal housing laws. ", "The ordinances, Munley said, \"penalize landlords, tenants, employers and employees without providing them the procedural protections required by federal law, including notice and an opportunity to be heard.\" \"Our analysis applies to illegal aliens as well as to legal residents and citizens. The United States Constitution provides due process protections to all persons,\" he wrote, emphasizing \"all.\" The city exceeded its police powers by enacting unconstitutional ordinances, wrote Munley, whom President Clinton appointed to the federal bench in 1998. Barletta said he would \"continue to fight for the people of this community and other cities around the country.\" \"It's almost amusing to me that the judge would say we can't do what the federal government should be doing, when in fact the federal government is not doing their job,\" he told CNN's Lou Dobbs. A spokesman for the ACLU of Pennsylvania expressed satisfaction with the ruling. \"Hazleton-type laws are designed to make life miserable for millions of immigrants,\" said Vic Walczak, legal director for the group and a lead attorney in the case. \"They promote distrust of all foreigners, including those here legally, and fuel xenophobia and discrimination, especially against Latinos.\" Anthony D. Romero, executive director of the ACLU, added, \"Political leaders, like Mayor Barletta, must stop scape-goating undocumented immigrants for all the problems we confront in our local communities.\" E-mail to a friend" ]

[ "f I could just sneak a second one in. As you think about your foundry/logic outlook for 2022, and you talked about continued strength.\nI was hoping you could speak to perhaps any changes that you see in the landscape, whether leading-edge, lagging-edge, EUV adoption, DRAM, anything we should be thinking about portfolio-wise that could be a little different than 2021?\nRick Wallace -- Chief Executive Officer\nNot really. I think just in terms of overall sustainability, we would expect to see the leading edge continue to invest as we go into next year. And given the public statements that have been made there, I think that's pretty consistent with what we're seeing. On the trailing edge side, we are seeing orders that are coming into backlog, but also in the funnel from a number of customers, a much more meaningful level of customers that haven't invested all that much in the past and are addressing some of these automotive and industrial and some of these other more trailing edge challenges.\nSo I would think from a shipment or revenue point of view, we'll see that business actually start to come to the P&L as we move into '22. China has been mostly Logic-centric this year, native China. And so I think we'll have to see how that plays out as we move into next year in terms of growth. Certainly, there's, I think, sustainability with the business levels that have been elevating through this year.\nBut I would expect to see a little bit more memory activity probably next year in China. And I think that's probably the 1 area where we don't have as much visibility in terms of logic growth there. So I think those are the dynamics and how they're playing. I think in terms of DRAM and NAND, I would expect those to continue to maintain the momentum that we've been seeing through '21.\nBren Higgins -- Chief Financial Officer\nBut C.J., I mean, just one thing to add, a lot of the business that we're booking now is revenue in '22. I mean, that's part of our confidence in '22. We're filled out for '21. And so that's part of what we're seeing.\nAnd then some of the players you know who are trying to regain the lead, a lot of that investment hasn't really shown up in our revenue numbers yet.\nC.J. Muse -- Evercore ISI -- Analyst\nVery helpful. Thank you.\nOperator\n", "And we will take our next question from Krish Sankar with Cowen and Company. Your line is now open.\nKrish Sankar -- Cowen and Company -- Analyst\nYes. Hi. Thanks for taking my question, congrats on the strong results. I have two of them.\nFirst one for reticle brand. I just want to ask the December quarter question in a different way. You said your semi-process control should grow 40% this year and half over half is mid-teens growth. So if I look at that, it looks like December quarter is around $2.3 billion, give or take.\nIs that a decent proxy for December revenues? And are you not seeing any impact from any of the component shortages that's affecting some of your friends in the industry? And then I had a follow-up.\nBren Higgins -- Chief Financial Officer\nYes. So I'm not going to guide December specifically, what we try to do is give you some perspective on our expectations for growth of Semiconductor Process Control equipment for the year. That was the high 30s to low 40s statement. We also talked about the total company growing mid-teens half to half.\nAnd so that was another statement there as well. So I don't want to put a point out there in terms of the revenue guide, but hopefully, you can get there with the details we have provided. Components are a daily challenge. We are managing across our factories, across our teams, managing our suppliers to be able to deliver the parts that we need.\nSome components have intrinsic lead times for us that are long-term. And so we have to make decisions, and we've been making decisions to make investments or for that to commit -- make commitments to those suppliers to be able to provide that supply for us as we move into '22. So it's a challenge. We're working our way through it.\nI'm spending more time. I've been with KLA for 21 years, and I'm s" ]

[ "commercial opportunity and how that develops here going forward. And it does seem like geothermal is going to get a pull here. But can you speak to the other commercial opportunities and how you think those evolve, particularly from a timing and cadence perspective given the backdrop? Does the commercial opportunity materialize more quickly across carbon capture and hydrogen electrolyzer...\nOlivier Le Peuch -- Chief Executive Officer\nI think, we have been commenting on this before. And, I think, we'll pull out a very comprehensive view at our capital markets day. And, I think, the biggest and long-term bigger potential is both on CCUS and hydrogen market, we believe, first and foremost. And believe that the energy storage including lithium processing extraction, as well as energy, stationary energy storage, as well as geo energy and geothermal, certainly a shorter-term and midterm opportunity that will not miss to secure.\nBut we'll come back with more detail and more of a better framework for you to understand our mission there.\nScott Gruber -- Citi -- Analyst\nI look forward to it. Thanks for the color.\nOlivier Le Peuch -- Chief Executive Officer\nThank you.\nOperator\nNext, we go to Connor Lynagh with Morgan Stanley. Please go ahead.\nConnor Lynagh -- Morgan Stanley -- Analyst\nThank you. Good morning.\nOlivier Le Peuch -- Chief Executive Officer\nGood morning, Connor.\nConnor Lynagh -- Morgan Stanley -- Analyst\nI wanted to ask about -- I just wanted to ask about the potential recovery in the back half. And particularly OPEC, you were alluding to the cessation of the supply agreement. I guess one thing that surprised us is while there have been some countries that have fallen short of their production targets, OPEC as a group has been able to raise production fairly significantly and there hasn't been as significant an increase in the rig count. I appreciate not all activity is captured in the rig count.\nBut has that surprised you? And when do you think we see a sort of catch-up? Do we need to return to 2019 activity levels to get to 2019 production levels?\nOlivier Le Peuch -- Chief Executive Officer\n", "First, I think the OPEC+ indeed has been very strict in to implementing the policy and respect to the quota. Second thing with very few exception, the GCC has been able to need unlock this production without significant at this moment, significant increase in short cycle activity to support that increase, this will position into necessary investment into supporting the sustain capacity in the coming month, until then and until now it has been that the production of some critical country where below their sustained capacity potential and the need for investing the need for accelerating investment tradition or intervention was measured and wasn't necessarily disproportionate compared to the past. I think you will see that positioning into the second half, and accelerating next year and it will combine with a capacity expansion they have committed to. So they will be hiking activity on two fronts, the short cycle to distant sustain maximum capacity that is established and an investment that will expand it this sustained capacity in the future.\nSo that is said to happen, it wasn't necessarily a big surprise to us, I think that Middle East was a bit of behind in terms of activity rebound internationally until now, but you will see this catching up in the second half and accelerating in 2023.\nConnor Lynagh -- Morgan Stanley -- Analyst\nAll right. Thank you. That's helpful context. Maybe just flipping over to the Russia side of things, I'm curious, in your full year revenue growth commentary, what are you contemplating in your Russia operations? Are you expecting significant activity declines? Could you help us frame what the cessation of new investments actually means for your activity levels in the near-term here?\nOlivier Le Peuch -- Chief Executive Officer\nI think, it's obviously an extremely dynamic situation. If you want the sanction of Saudi having an impact on the Russian economy in operation will not be immune to this effect. But c" ]

[ " where that activity ends up and how we can -- what we get back from our customers and that does fluctuate up and down over time.\nRichard Hamilton Prentiss -- Raymond James & Associates -- Analyst\nThanks, Jay. One more quick one, and then you'll get someone else squeezed in. Any updated thoughts on in Building Systems. There has been a lot of talk about private 5G networks and what the opportunity might be. What are your thoughts as far as capital deployment back to kind of question on what's the opportunity for private 5G maybe in Building Systems?\nJay A. Brown -- President and Chief Executive Officer\nYeah. The in-building and I would put venues into this category to five or six years ago, we had talked about in building and venues and we saw some opportunities but relatively limited. And that business has really picked up on the small cell side. And we are seeing some really nice opportunities on in building and venues and seeing some healthy growth there. The returns are good.\nIt's a place where we like to invest. Certainly, it falls into that category of the densification comments that I was making earlier. Any place to see a densification of people with the growth in traffic that we're seeing, really the only way to manage the network toward a viable solution is to go in and put in small cells and that's true in the public right of ways, and it's true in venues and in buildings.\nSo the growth in traffic that we're talking about and the deployment of this 5G network just requires a greater densification than in building and then use are following the same pattern that we're seeing happen in right of ways.\nRichard Hamilton Prentiss -- Raymond James & Associates -- Analyst\nGreat, thanks guys, stay well.\nBenjamin Raymond Lowe -- Vice President of Corporate Finance\nMaybe we can try to squeeze in two more callers before we drop off this morning.\nOperator\nNext, we'll hear from Sam Badri of Credit Suisse.\nSami Badri -- Credit Suisse -- Analyst\nHi, thank you. I wanted to ask you about your tenants with power that moved higher in the quarter and it comes along with the solid move in your rental revenue per tower. Is there any opportunity for accelerated tenancy improvement given the 5G build in some of the other trends that you mentioned? And as you see tenant to go up, what the impacts of free cash flow at this point?\nJay A. Brown -- President and Chief Executive Officer\n", "Yeah, we are seeing increased tenancy on the towers. Historically, we've added about one tenant every 10 years roughly. I think that's a pretty good forecast for what we'll see over the long term. It's underpinning our 7% to 8% targeted growth in the dividend over time. So I think we'll -- I think that's kind of the path that we're on. And as I made the comments earlier around the capital spending by the carriers in the environment that we're in, I think we've got a good tailwind to continue to stay on that path of increasing tenancy of about one tenant over 10 years.\nThe unit economics of the business remain intact and Dan mentioned this in his prepared remarks. But we're drop in $0.90 of every dollar up at the Organic Site Rental revenue lines. We're dropping that all the way down to AFFO. And this is a real credit to our team who has done a tremendous job of managing the expenses and being thoughtful about places where we can take out costs in order to achieve that those very high incremental margins on incremental dollars of revenue.\nAnd that's one of the beauties of our business model and certainly one we think we can continue to sustain and improve upon.\nSami Badri -- Credit Suisse -- Analyst\nGot it. One other follow-up is, does your guidance include any type of benefit from the Biden infrastructure bill that may be passed in the near future? And then, if your guidance does not include it, how do you imagine the broadband budgeted spend benefit your business if it -- there is a path for that?\nJay A. Brown -- President and Chief Executive Officer\nWe have not anticipated any of that in our current forecast or guidance. I think the most likely path for be" ]

[ "he basics? Meaning, what drives your growth? What kind of projects that are happening in the market? Where you are in terms of high-level positioning in the market, kind of types of opportunities? I'm not talking about specific customers because you gave a lot of examples. I want more to understand the bigger picture. What's happening in the market that eventually drives your growth acceleration?\nShuky Sheffer -- President and Chief Executive Officer\nHi, Tal. I will start and Tamar can add. I think, first, there is a great alignment between our product and services to the market needs. I think, you know, that many years in the company, but this is one of the, I would say, the best-ever positioning of Amdocs that all the megatrends that, you know, we -- that was there, we predicted them, invested a lot to make sure that we are ready.\nAnd we talked about these megatrends like 5G and journey to the cloud, and network automation, the [Inaudible] general. I think we are very ready to these megatrends. So, I think this is a one -- top reason. The second is that we see a lot of success globally.\nSo, it's not, you know, just in North America or in Europe. We see a very -- a good momentum -- sales momentum across all regions. And as important, as I mentioned, we see a lot of funnel ahead of us. So, it's not that, you know, we won some deal and that's it.\nActually -- and we see that the funnel of opportunities is increasing from quarter to quarter. So, the -- and as -- by the way, it's reflected by our backlog. So, if you took everything together, tying it all together, we believe we have a very strong momentum. We have the right product, right services.\nI think that our technology leadership of our products comparing the competition is the highest ever. And so, we are very encouraged with our position. And as you see, it's working well. Tamar, do you want to add?\nTamar Rapaport-Dagim -- Joint Chief Financial and Operating Officer\n", "Maybe just to add some different dimension of looking at it. As we look on our position in the market, as you know, we have a very strong customer base. So, one thing that is extremely important is that we are chosen again by key customers to build a future on Amdocs. So, talking about names such as AT&T, and T-Mobile, and Vodafone.\nYou know, they're building the next-generation stack to support their business and the heart of their strategy on Amdocs. And on top of that, we are expanding our footprint within very strong names in the market that are relatively new customer for us, but very strong in the market, such as Charter, such as Verizon, and other names. And then, add to that, penetration into many new logos globally, such as the examples we've given on the call, you know, PPF. We talked about additional affiliates within the Vodafone Group, for example, in Turkey.\nWe talked about Vodacom in Africa. And from quarter to quarter, you see more and more examples of these new logos that are supporting the growth as well. So, it's a combination of expanding in existing customers, entering new large potential logos that can be very meaningful for our future, and many, many other logos internationally.\nTal Liani -- Bank of America Merrill Lynch -- Analyst\nGreat. I have two quick questions also. Your customers, sometimes, they deploy -- you're a pure software company. Your customers, though, depend on equipment to launch some services, and they do suffer from supply constraints.\nAnd we also cover the equipment vendors who are not growing as much as the order is growing just because they can't supply. So, the big question here is whether your business is impacted in any way by supply constraints that we're seeing across the hardware market? And if yes, how --\nShuky Sheffer -- President and Chief Executive Officer\nAnd, Tal, the answer is no. First of all, we are working in the cloud, so we are not using, you know, directly connected to any hardware process like it used to be. And I would tell you that, so far, we did not encounter any headwinds which is related to the supply chain issue.\nTal Liani -- Bank of" ]

[ "res.\nI will now turn the call over to GDS Founder, Chairman, and CEO, William Huang. Please go ahead, William.\nWilliam Huang -- Chairman and Chief Executive Officer\nThank you, Laura. Hello, everyone. This is William. Thank you for joining us on today's call. GDS has been on an extraordinary journey for the past five years. The data center market in China has grown beyond imagination. As digitalization took off, our growth trajectory has been unprecedented in the data center world. We have become the clear market leader reaching a scale which is a multiple times bigger than our closest competitors. We have the best customer relationships, the most compete market presence, by far the largest development pipeline, the strongest the balance sheet, the lowest cost of capital. And most important of all, an unmatched reputation, which reflects many years of consistent delivery and a high operating standards.\nAs we look forward from today, we see wave after wave of incremental demand driven by new technologies such as 5G, AI, cloud and IoT, supported by highly favorable government's policies. The market opportunities in front of us is inconceivable. While others are just waking up, we are moving rapidly ahead to reinforce our market position by innovating with products and business models, deepening our strategic customer relationships, adding substantially to our pipeline of scarce resource in Tier 1 markets, enhancing our platform by entering new markets in China and overseas, seizing opportunities to further consolidate the market and groundbreaking green initiatives.\nWe have only just begun to reap the rewards of our past efforts. 2021 will mark our 20th anniversary. For me personally, GDS is still at an early stage of development. And over the next few years, we will take the business to another level. Despite the difficult operating environment last year, we made a tremendous progress over the past year across every aspect of our business and have met or exceeded our expectation.\nFirst of all, we beat our sales target adding over 136,000 square meters or 271 megawatts of new customer commitments. We expanded our data center capacity in line with sales adding nearly 140,000 square meters in service and under construction. We added significantly to our development pipeline, ending the year with 480,000 square meters secured for future development.\n", "We stepped up our M&A activities, closing four deals with over 50,000 square meters of capacity. We grew revenue by 39.2% and adjusted EBITDA by 47% year-over-year. Our adjusted EBITDA margin came off nearly 2.5 percentage points higher at 46.7%. We raised $2.4 billion of equity and successfully completed our Hong Kong IPO.\nTurning to our sales achievement on slide six. At the beginning of the year, we targeted 80,000 square meters of organic net add, plus 20,000 square meters from acquisitions pending closing. We over delivered by a big margin, achieving 108,000 square meters of organic net added, including 14,000 square meter from B-O-T projects, and nearly 28,000 square meters from M&A.\nLooking forward to 2021, we believe that the current level of organic booking is sustainable, at around 90,000 square meters to 100,000 square meters of net add. Excluding B-O-T data centers for the M&A part, we already have over 19,000 square meters net added in progress from the Beijing 15 acquisition, which is pending closing and we aim to close more deals this year.\nTurning to slide seven, every quarter a handful of hyperscale orders account for a large part of our sales. These must win deals are typically major deployments at our edge-of-town campus. Hyperscale customers look to land and expand in key locations. For cloud service providers, these locations are often considered as discrete availability zone, which are critical to their IT architecture.\nWe are very strategic in targeting the first piece of business when customers deploy to a new area. We have succeeded many times in attracting hyperscale customers to establish an initial presence on our sites. It requires close collaboration w" ]

[ "ur XBAR technology. Our solutions were developed to be the best in the industry and now more than ever, this is quickly being recognized by the market and by the major players within the ecosystem.\nBut as we look at the competitive landscape for addressing the requirements of 5G, 6G mobile, Wi-Fi, 5, 6, and 7, ultrawideband and potentially millimeter wave, we believe our export-based solutions will be the best solutions to unlock the true potential for these next-generation wireless networks. Turning to Slide 4. Those who have been closely following the industry know, we are in the very early days of 5G when it comes to performance. With the 5G market expected to contribute roughly $7.6 trillion to the global economy over the next decade, it's easy to understand why the investment going into the space on the front end continues to ramp up.\nIn January, mobile network operators in the U.S. spent over $80 billion to acquire new sub-6 gigahertz RF spectrum on which the next generation of 5G network services will be built. This was a momentous step in the advancement of 5G network deployments, and this validates the national infrastructure of next-generation mobile networks is still in development. But what does it tell us about today's 5G? In this current form, true 5G has yet to expand into many cities and in few locations where there is 5G coverage that exhibits subpar performance.\nIn order for networks to reach the high data speeds of true 5G, there are several critical items that need to occur and considerations the market needs to address. I've talked a lot about the potential of Resonant's XBAR technology. But let me spend a few minutes discussing what this would look like in a world without XBAR-based filters. The newly acquired sub-6 gigahertz RF spectrum I just mentioned, is a strong indication that the next wave of 5G deployment will be in the sub-six gigahertz range.\n", "Without XBAR, 5G networks would likely utilize today's aluminum nitride BAW RF filters, which were developed specifically for 4G. Due to their limited high-frequency RF performance, these legacy filters would require many more base stations deployed across the network to deliver the same coverage and consumer experience. Rolling out these additional base stations would be possible, but it's an incredibly more costly approach to achieve true 5G performance. Further, the spectrum wasted due to interference degrading spectral efficiency would be massive.\nThe inefficiency impact would be in the billions of dollars, and that is in just the U.S. Turning to Slide 5. Let me continue under the premise of a world where XBAR does not exist. There is clearly the potential for massive spectral efficiency issues driven by the challenges associated with using RF filters designed with technology developed for 4G on these next-generation networks.\nLegacy BAW Filter technology inherently does not have the required power handling or bandwidth at high frequencies, causing devices such as handsets and routers that utilize these filters to suffer with degraded connectivity and performance. Now let's compare mobile devices, leveraging legacy filter technology against devices with Resonant's state-of-the-art XBAR technology. You will see that the difference in performance is substantial. The delay in mobile download times is just an example of the differences between using legacy filter technologies versus Resonant's XBAR technology.\nIn the modern environment, where smart devices, home appliances, connected vehicles, healthcare, and many more applications will rely on optimal speed and low latency. We believe our XBAR technology will be fundamental in meeting the connectivity requirements and performance expected by consumers to these next-generation networks. Turning to Slide 6. When we discuss the benefits of XBAR when compared to legacy filter technology, the differences in performance are measurable and can be demonstrated.\nLet's dive into the exact challenges that existing BAW technologies have when it comes to meeting the bandwidth requirements of next-generation netwo" ]

[ "mited distance, small cell has become increasingly common to improve the coverage and capacity of the network. Our low-jitter high performance crystal oscillator are needed in certain modules for precision timing needs. In the CPG space, our PCI Express packet Switches and clock buffers are finding wide acceptance in many 5G boxes. We also saw strong momentum for PMOS in remote radio unit and NMOS for 1 KV for large boost power in 5G base stations to save power consumption. [Indecipherable] TVS and LDOs also saw increasing design-ins and design wins in smartphone and 5G router applications.\nLastly in the computing market, revenue increased over 7% sequentially and also 14% year-over-year to record levels as work-from-home and shelter in place continue to drive momentum in notebooks, motherboard, surfers and storage applications, in particular for our Pericom product family. This quarter we released 20 output PCI Express Gen4 and Gen5 clock buffers, building up on our previous released family of clock buffers and clock generators and enabling us to now offer the most comprehensive cost solutions for server and data center applications. This cost solutions and our frequency control products, position us well for the next major server platforms with PCI Express Gen for deployment.\nMomentum for our Pericom product continued in the quarter and revenue remained at the second highest quarterly levels since the acquisition. This product continue to dominate in signal integrity space with PCI Express Gen 4 redrivers, [Indecipherable], USB 3.0, Gen 2 interface in PC and motherboard applications. We're also seeing tractions for our fully integrated active month for PCI Express Gen 4 and USB 3.2 [Phonetic] Gen 2 by 2 redriver solutions for USB Type C applications.\nWe also continue to increase market share for switching diodes and TVS products using desktop and mobile applications as notebook, PC business continue to be strong, primarily driven by work-from-home, remote education and e-learning demands due to COVID-19. Our USB power switch product line achieved record high quarterly revenue and we are seeing more USB Type C adoption with many design wins, using our popular crossbar switches product. We have also seen growth momentum for SBR, MOSFET, and SKY product in applications like USB Type C and power delivery and ATX power charging and adopters.\n", "In summary, we're very pleased with another quarter of strong results and continued growth despite the current environment. Our record results in the automotive, consumer and computing market, combined with record worldwide POS are setting the stage for Diodes to potentially set a new quarterly revenue record next quarter in what is typically is down quarter. We look forward to reporting our continued progress and closing our Lite-On Semiconductor Acquisition at the end of November to further enhance our future opportunities.\nWith that, we'll now open the floor to questions. Operator?\nQuestions and Answers:\nOperator\n[Operator Instructions] Our first question comes from the line of Gary Mobley of Wells Fargo Securities. Your question please.\nGary Mobley -- Wells Fargo Securities -- Analyst\nHey, everyone. Hope all is well. I want to start out asking for clarification from you, Emily. You mentioned that point of sale was up 19% versus revenue being up only 7%. But I think you mentioned that distributor channel inventory was up sequentially. I'm just trying to reconcile that difference?\nEmily Yang -- Vice President, Worldwide Sales and Marketing\nRight. Gary, good morning. Definitely POS increased globally 19% and Asia, is actually increased 20%, and North America and Europe increased 16%. Our channel inventory as actually decreased to our lowest ever, since the end of 2018. So it's really at the lower end that we define as a normal range.\nGary Mobley -- Wells Fargo Securities -- Analyst\nOkay, miss heard that. All right, and as it relates to your gross margin outlook for the fourth quarter, roughly 36% and that's on a record quarterly revenue level. And so you've been at 37% or 38% gross mar" ]

[ "urers that work with the OEMs, and they support multiple OEM programs.\nSo we have good activity in North America, and also in regions of Europe that are also supported out of those Taiwan- and China-designed locations. So this pipeline will continue to increase. We talked about 12 design wins, 13 design wins, that we're at right now and I expect it to continue to increase. Yeah, we've got goals that we established of design wins per quarter, not all of those will go into production.\nThe main thing is just is get, obviously, your product onto every platform and work with customers. We have a lot of customer intimacy to support them through the application engineering and really get that product to its optimal performance so that they want to release that into production. So we'll continue to focus on WiFi 6e, primarily, and WiFi 6 at a smaller percentage \nJeff Shealy -- Founder and Chief Executive Officer\nAnd Wei, this is Jeff. Let me just add a couple of points. With the recent acquisition of RFMi. I think we've done -- the team has done a really good job of aligning the sales channels, filling in the gaps.\nSo we're clearing the path. Dave talked about some of the expansion that we have in Asia ongoing. So that's extremely important. And just in terms of the pipeline, just to emphasize, I know we guided sequentially 25% up.\nBut if you look at if you look at the -- with some of the RFMi product revenue being flat to down quarter over quarter, you're then looking at a sequential increase in the core XBAW filter business, it's going to be up well over 50%. So we think that, and we see that continuing not only for Q3, but we see we've got a pipeline of design wins that are -- really support that continued growth in the Q4. So the pipeline, I think we're getting good feedback on what we're doing in the sales channel, and that's leading to design wins, sales funnel, and with the sales channels that we have, leading to a very nice sequential growth in the in the XBAW business.\nWei Mok\nGreat, thanks for that. So in regards to RFMi, do you frame out how how did RFMi contribute to revenues in the December quarter? What products and markets do they come from? Thanks. \nJeff Shealy -- Founder and Chief Executive Officer\n", "So, yeah. So let me ouch on that. So we previously -- when we acquired the RFMi business, or the 51% majority ownership of it, we gave guidance. They came in above expectations for the December quarter.\nI think what that tells us is initial signs is we made a very good acquisition here. And I think the emphasis there is new markets, as well as new sales channel, complementary sales channel, and then also more traction with our OSAT suppliers. So that's our overseas assembly and test. It was certainly one of them we've picked up additional traction in and additional priority.\nWe do expect them to be flat to down for the March quarter and then have some sequential growth in the fourth quarter. So that's how that plays up. In terms of some additional color in the queue, we did, if you look at note No. 7, you can get the additional analysis on RFMi.\nI think there's pretty detailed analysis provided in the filing. So appreciate the question. Thank you.\nWei Mok -- Oppenheimer and Company -- Analyst\nThank you.\nOperator\nThank you. Ladies and gentlemen, that concludes our question and answer session, and I'll turn the floor back to Mr. Shealy for any final comments.\nJeff Shealy -- Founder and Chief Executive Officer\nThank you, operator, and thank you, everyone, for your time today. We look forward to speaking with you during our next update call to discuss current quarter execution against the milestones we outlined today, as well as future expectations that we set. I wish everybody a happy and safe Monday, and thank you for your time and attention.\nOperator\n[Operator signoff]\nDuration: 58 minutes\nCall participants:\nTom Sepenzis -- VP Corporate Development and Investor Relations\nJeff Shealy -- Founder and Chief Executive Officer\nKen Boller -- Interim Chief Financial Officer\nAnthony Stoss -- Craig-Hallum Capital Group -- Analys" ]

[ "ufacturers and have strategically invested in Tongwei Sichuan Yongxiang and the Inner Mongolia Sichuan high-purity polysilicon production project. Our seven-gigawatt monocrystalline silicon wafer plant in Vietnam will commence production in the first quarter of next year. After that, we will have approximately seven gigawatts of integrated mono wafer-cell-module manufacturing capacity overseas.\nA sound and diversified global industrial chain infrastructure will enable us to be more flexible in terms of order production and customer delivery as we continue to provide integrated services for our global customers. \nXiande Li -- Founder, Chairman of the Board of Directors, and Chief Executive Officer\n[Foreign language]\nRipple Zhang -- Investor Relations Manager\nBefore turning over to Gener, I would like to go over our guidance for the fourth quarter of 2021. We expect total shipments to be in the range of 7.3 to 8.8 gigawatts, including module shipments to be in the range of seven to 8.5 gigawatts for the fourth quarter of 2021. Total revenue for the fourth quarter is expected to be in the range of $1.8 billion to $2.2 billion. Gross margin for the fourth quarter is expected to be in the range of 13% to 16%.\nThe annual mono wafer, solar cell, and solar module production capacity is expected to reach 32.5 gigawatts, 24 gigawatts, and 45 gigawatts, respectively, by the end of 2021. With impact from less shipments to the U.S. market and the global logistics situation, we are lowering the guidance for our full year 2021 shipments, including wafers, cells, and modules, to be in the range of 22.8 gigawatts to 24.3 gigawatts.\nGener Miao -- Chief Marketing Officer\nThank you, Ripple. Total shipments in the third quarter were five gigawatts, with module shipment increasing 18% sequentially to 4.7 gigawatts. In terms of module shipment by region, Europe and Asia Pacific were the main contributors. Driven by China's combined goal of 30-60 and the efficient energy transition, shipment to Chinese market doubled sequentially.\n", "Shipments to emerging markets increased significantly both year over year and sequentially, a sign that markets are benefiting from policy support. The People's Bank of China recently launched a carbon emission reduction support tool. As large-scale and distributed projects start construction, next year's total pipeline in Chinese market is expected to exceed 100 gigawatts. Looking forward to 2022, market demand in China, U.S., India, Europe, and Australia will continue its upward trajectory.\nModule prices remain high, which was accelerated the penetration of products with lower LCOE and the penetration of the distributed generation business, which is less price sensitive. Our distributed business accounted for approximately 35% to 40% in the third quarter and over 50% in some markets such as Australia, Japan, and Brazil. Clients have been favorable toward our premium-quality products such as Tiger Pro and a two-millimeter product, which was specifically designed for residential C&I distributed generation facilities. Meanwhile, our global brand awareness and our global marketing team strengthened the market competitiveness for our BIPV products.\nWe have recently won the bid for the new Dubai Electricity & Water Authority's headquarter building projects, which will become the world's largest and tallest single building equipped with BIPV system. The BIPV system uses advanced N-type cell technology and modules with a transparency range between 3% and 16% and can provide a power output of 500 watts to 708 watts. As one of the directions of our core developments, the proportion of shipments in the distributed generation market will further increase next year. Shipments of the Tiger Pro products that can bring lower LCOE accounted for nearly 50% in the third quarter and are expected to exceed 70% in the third -- fourth quarter.\nIn 2022, we will optimize and match the capacity advantage of Tiger Pro and Tiger Neo product, solidifying our leading position in high-efficiency products. In terms of contract performance and pric" ]

[ "u are still able to expand on 1% EBITDA margin. I think with the recent carbon-neutral initiative by the government, what is our plan on the renewable side and how would that impact our cost in terms of developing and would that have any impact on our MSR?\nAnd just quickly on -- Dan, I think you mentioned about the acquisition was inorganic. It seems to me that inorganic has been stepping up since the past 12 months. Is it because the projects are being more mature in towns and cities, or the prices have been coming off? Is there any trend that you could share with us? Thank you.\nDaniel Newman -- Chief Financial Officer\nHi, John. Thanks for initiation. I think John you're the most recent one to initiate on GDS, very good report, if I may say. We'll publish our first ESG report next year and until then, I don't want to come out and set any expectations, because I think there's a lot of irresponsibility in this area where companies talk about targets without giving any timeline or any metrics, and it just looks to me like marketing. We've established a team -- we haven't -- we are enhancing our expertise in the power sector to try to manage this better. And it requires ingenuity and creativity to be able to increase the proportion of our data centers which use renewable energy. And we're working hard to do that. So, take it very seriously.\nYou said the inorganic proportion seems to have stepped up and we've done, I think, with the Shanghai 19 acquisition, which we announced today, that was the 11th acquisition which we've done since, I think, second quarter of 2016, was the first M&A deal. There has been around two deals per annum, some of those deals have been larger, for example, one of the deals in 2019 was Beijing 10, 11, 12. So, it's like three data centers. And the deals that we've done in 2020, like Beijing 13 was 20,000 square meters. In fact, we hope soon to announce that we've been able to upscale that quite significantly. And Beijing 14, which hopefully will move forward in five definitive agreements and close next year, that's also 20,000 square meters. So, I think we're still doing around two deals per annum. And hope to maintain that, or if not, more.\n", "You made a comment about acquisition multiples, I think, we've seen two kinds of M&A opportunity in terms of stage of development. Most of our deals have been projects which are under construction or at least when we sign a sale and purchase agreement, there is still a substantial amount of work to be done to complete those projects. And in that case, we've been mining projects at single-digit multiples of estimated -- stabilized EBITDA, factoring in what we pay and the cost to complete. Shanghai 19, you can do the math from what we've disclosed, definitely fits into that category. But then there have been a couple where we've acquired data centers, which were already complete. And as I mentioned before, there's more competition for those kind of opportunities, including from financial investors. We will do those deals when we see very strong strategic rationale, of course, the multiples are at double digits now. But I'm interested to see when the REIT market in China develops, which will be long now. And in respect to data centers, I'm interested to see what kind of cap rates data center REITs will command. And my expectation it's going to be way below the level at which we've done our deals, even the more advanced or mature deals.\nJohn Choi -- Daiwa Capital Markets -- Analyst\nGreat. Thank you.\nOperator\nAs there are no further questions, I'd like now to turn the call back over to the Company for closing remarks.\nLaura Chen -- Head of Investor Relations\nThank you, everyone, once again for joining us today. If you have further questions, please feel free to contact GDS' Investor Relations through the contact information on our website or The Piacente Group Investor Relations. See you next quarter.\nOperator\n[Operator Closing Remarks]\nDuration: 66 minutes\nCall participants:\nLaura Chen -- Head of Investor Relations\nWilliam Wei Huang -- Founder, Chairman and Chief Ex" ]

[ "t's a computer that is writing software. The way that you develop software is completely different, the way compute is different and that was our first phase and that started in the journey that was some eight, nine years ago now.\nThe second phase was the adoption of using this in an industrial way for clouds and we strongly revolutionized these services whether it's speech oriented services or search oriented services, just recommender services, the way you shop, the way you use the Internet is completely different to and so that's really the second phase and those two phases are still continuing to grow and you're still seeing the growth associated with that. The third phase is the industrialization of AI and some of the great examples when I say kind of the smartphone moment, I meant that it's a device with AI, its autonomous and its connected to a cloud service and its continuously learning. So some of the exciting example that I saw -- that I've seen and we're working with, with companies all over the world, we have some 7,000 AI start-ups that we're working with and almost all of them are developing something like this and large industrial companies whether it's John Deere or Walmart, they are all developing applications kind of like this and basically it's an autonomous system, autonomous machine.\nIn our case, it's called Jetson, it's a robotics machine. If that robotics machine is a car, then its called DRIVE and it's running an autonomous -- an AI application on top, an AI skill on top and it could be moving things around, it could be picking and placing, it could be just watching a warehouse and monitoring traffic and keeping traffic flow going. It could be connected to a car and whenever the car -- whenever the fleet of cars needs to be retrained because of the new circumstance that was discovered, the cloud service would do the relearning and then would deploy it into all of the autonomous devices.\nAnd so in the future we're seeing that these industries whether you're in retail or in logistics or transportation or farming, ag tech to lawnmowers -- consumer lawnmowers. They're not going to just be products that you buy and use from that point forward, but they will likely be a connected device with an AI service that runs on top of it and so these industries are so excited about it because it gives them an opportunity to change the way that they interact with their customers.\n", "Rather than selling something once, they sell something and provide a service that's on top of that and they could stay engaged with the customers. The customers could get a product that's improving all of the time just like your smartphone and that's kind of like -- that's kind of the reason, that's the reason why I've been calling it the smartphone moment for all these industries and we saw what happened to the smartphone revolution and then we saw what happened to the smart microphone, the smart speaker revolution.\nYou're going to see smart lawnmowers, smart tractors, smart air conditioners, smart elevators, smart buildings, smart warehouses, robotic retail stores. The entire retail store is like a robot and they will all have autonomous capability, they'll all be driven by AI. And so what's new for the industry therefore is that all of the enterprises in the world used to have computers for IT to facilitate -- to host their employees and their supply chain, but in the future all of these industries whether you are in medical imaging or lawnmowers, you're going to have data centers that are hosting your products just like the CSPs and so that's a brand new industry and we have a platform that we call EGX, which is the 5G Edge AI systems and we have the autonomous system we call AGX, which is [Indecipherable] and between those two systems and the software stack that we have on top of it, we're in a great position to help these industries one at a time transform their business model from the object-oriented business model, a theme based business model to a connected device business model.\nOperator\nYour next question comes from the line o" ]

[ "Artist Robert West is proud of his connection to the Pullman Company. His grandfather, Allen Parrish, was a Pullman Porter and helped inspire some of his train paintings. Robert West paints his latest project in his Atlanta, Georgia, studio. \"When I was growing up, we would often take grandfather to work at the train station. I became impressed and mesmerized with trains through this experience. This passion ultimately led me to become a full-time railroad illustrator,\" West said. The Pullman Company was one of the largest employers of African-Americans in the 1920s and '30s. It hired them as porters in railroad sleeping cars to assist railroad passengers and make up beds. These jobs were once highly regarded in the black community because they offered the opportunity to travel and better pay and security than most jobs open to blacks at the time. West says trains have an important place in African-American history -- from symbolism in Negro spirituals to a real conveyance for the mass migration of blacks moving to the North in the 1930s, '40s and '50s. \"Trains have so long symbolized hope, freedom and power -- what better metaphor could there be to represent our struggle and our assimilation into mainstream American life,\" West said. Many of West's paintings depict historical scenes with the now defunct Atlantic Coast Line Railroad, because that's where his grandfather worked for many years. Watch award-winning artist on trains and history » West paints other trains, including the Steam, Gas turbine, Electric, as well as first through sixth Generation Diesel Electric Locomotives. He wears a conductor's hat as he works. \"I think it's important that all the cultures in the United States look back at our history by way of the railroads,\" West said. \"It was through our contributions to the railroads, that also pushed us forward as a nation and as a human race.\" West has been drawing and painting trains since the age of 2. In 1973, he decided to make railroad illustrating a profession. Through the years his work has won several awards in shows of national and regional scope. \"I'm probably more of a visual historian more than anything else, because I conduct weeks, months, sometimes years of research prior to doing a painting,\" he said. West has painted more than 500 original works, which have sold across the United States and around the world. Train enthusiasts are his largest market. ", "\"When one looks at my paintings, I like for them to not only feel a sense of joy, but to feel good about times when times were happier, kinder, and gentler,\" he said. E-mail to a friend" ]

[ "Phillip Garrido and his wife, Nancy, will face 29 felony counts after being accused of kidnapping Jaycee Lee Dugard when she was 11 and keeping her in their backyard since 1991, the district attorney of El Dorado County, California, said Friday. Phillip Garrido, a registered sex offender, was arraigned in California on Friday. The Garridos are each facing charges of kidnapping someone under 14 years of age, kidnapping for sexual purposes, forcible rape and forcible lewd acts on a child. The maximum penalty for both defendants would be life imprisonment. Authorities are looking into Garrido's possible connection to other crimes. Hear interview with Garrido » A search warrant was issued for Garrido's home in connection with killings that occurred in the 1990s, a spokesman for the Contra Costa Sheriff's Department said Friday. Pittsburg, California, police obtained the search warrant, said the spokesman, Jimmy Lee. Earlier Friday, a California sheriff also admitted that his organization \"missed an opportunity\" nearly three years ago to find Dugard. Someone called 911 on November 30, 2006, to say that a woman and young children were living in tents in the backyard of Phillip Garrido, said Sheriff Warren E. Rupf of Contra Costa County, California, on Friday. \"This is not an acceptable outcome,\" he said. Watch Rupf talk about the 'missed opportunity' » The responding sheriff's deputy spoke with Garrido, a registered sex offender, in the front yard of his house. \"None of us, particularly law enforcement, should believe a word that one of these animals utters,\" Rupf said when asked about the lessons learned from the missed opportunity. \"If there's a sophistication [about sex offenders] in any regard, it's in misrepresenting who they are and what motivates them. \"We took things he said obviously at face value and did not properly brand him.\" Rupf also said that \"to the best of his knowledge,\" the deputy didn't know that Garrido was a sex offender. The deputy determined that no crime had been committed even though he did not enter or ask to enter the backyard, the sheriff said. \"We should have been more inquisitive, more curious, and turned over a rock or two,\" the sheriff said. \"We missed an opportunity to bring earlier closure to this situation.\" ", "Dugard lived for 18 years in a shed and other outbuildings behind her abductor's house, where she gave birth to two girls whom he fathered; the girls are now 11 and 15, police said. CNN policy is not to publish the names of victims when there are allegations of sexual assault. In this case, Dugard has been the subject of a 20-year public search and her image and name have been widely disseminated, making protection of her identity virtually impossible. Dugard was kidnapped in 1991 as her stepfather watched, helpless, in front of her house in South Lake Tahoe, California. Learn about some missing children who have been found alive » Investigators arrested Garrido on charges of kidnapping and abusing her after police discovered Dugard on Wednesday. \"The last 18 years have been rough, but the last two days have been pretty good,\" her stepfather, Carl Probyn, told CNN's \"American Morning\" on Friday. Watch Probyn describe getting the news » Phillip Garrido, 58, and 54-year-old Nancy Garrido were arraigned Friday in Placerville Superior Court in Placerville, California. They pleaded not guilty Friday. During their time living in Garrido's backyard, Dugard and her two children apparently rarely ventured out of their compound, investigators said. Dugard \"was in good health, but living in a backyard for the past 18 years does take its toll,\" El Dorado County Undersheriff Fred Kollar said. He described her as \"relatively cooperative, relatively forthcoming\" in discussions with detectives. She was \"in relatively good condition,\" neither obviously abused nor malnourished, he added. \"There are no known attempts by her to outreach to anybody.\" The" ]

[ "ucts.\nAnd we believe that as long as we can continuously serve our users well and we will keep growing and thanks to trusting us. So one sector, we are actually we always our priority is in the agricultural sector. Not only is agriculture digitized by mobile Internet, it is also greatest widespread benefit, that's where we can create as a big platform. And we are now China's largest agricultural platform and so in the future we will commit to do more for agriculture sectors and rural communities.\nAnd the other thing, I'd talk to about is -- the future is integrated word online, offline. Yeah, definitely, we are targeting this kind of new word. So I think about it and you really need to look at it wider retail market. So, today China's total retail sales for consumer goods [Phonetic] already reached RMB39 trillion in 2020 and it is expected to grow at 5% per year over the next five years and if you take a look at our number, so our GMV stands and only 4% target. So I believe as consumer behavior of online, offline continue to integrate and an opportunity for us, we definitely will continue to expand.\nTony Ma -- Vice President of Finance\nLet me pick up on the second question on Duo Duo Grocery, I guess. And as you mentioned, Duo Duo Grocery we operated as the 3P offering. From an accounting point of view, we generate transaction service revenues for the service provided to our merchants and some farmers. The contribution in Q4 and fiscal year 2020 of Duo Duo Grocery products was immaterial and most of the cost associated of running Duo Duo Grocery operation such as warehouse rental, delivery logistics and captured and our cost of revenues. Just a note, Duo Duo Grocery is a very young business, I mean we we just started with a few months and it is still evolving. But we are very confident about this business model and it brings significant value to our consumers and other participants among this value chain.\n", "And a few key drivers we can think of and on the new e-site, let's take, if we are able to streamline unnecessary layers of the distribution and each layer traditionally would take up a meaningful mark up, so a more efficient supply chain would also mean less of spoilage and all of these factors putting together will definitely bring additional value to the stake for all the participants, the stakeholders to share in this business model. But like I said, the development on the infrastructure on the whole process will take time to be there. So, at this moment profitability won't be a target for us to fix for the grocery.\nDavid Liu -- Vice President of Strategy\nYeah. Toni, I just want to add on top of that to say that at the end of 2020 we are the largest e-commerce platform by users already and as we have always talked about focusing on engagement really is the core of our strategy and we are confident now with an even further enlarged base that continues to grow at good momentum, we should be able to drive even better engagement and Duo Duo Grocery really plays into that by giving us an additional access point to address the needs that we previously couldn't have.\nSo we have high hopes for the Duo Duo Grocery business because it is integral, it is the expansion of our overall platform and as the model evolves, I think the rules of the different constituents of Duo Duo Grocery ecosystem may also evolve as well. So stay tuned and bear with us, we think this could be tremendous opportunity. We are confident that we will be able to execute, but it will take some iterations to find the perfect model. Why don't we move onto the next question.\nOperator\nThank you. The next question comes from the line of Thomas Chong from Jefferies. Please go ahead.\nThomas Chong -- Jefferies -- Analyst\nHi. Good evening. Thanks management for taking my questions. I think in the prepared remarks management comments about Duo Duo Maicai as the merchandise sales, which is a 1P trial business and is sort of a trend to the GMV. So I just want to get a sense about when the business is getting bigger and bigger, should we expect the merchandise sales c" ]

[ "\nThank you.\nOperator\nWe have the next question from Quinn Bolton. Please go ahead.\nNathaniel Quinn Bolton -- Needham & Company, LLC, Research Division -- Analyst\nHey, I just wanted to ask, I think it was on the last call, you talked about your engagements with new and existing customers on their next-generation architectures. I'm wondering if you could comment whether those next-generation designs are still on track. Or have some of the component shortages and manufacturing capacity constraints affected the time lines of some of those next-gen products? And then I've got a follow-up on automotive.\nPhilip D. Davies -- Corporate Vice President, Global Sales and Marketing\nThis is Phil, hi. So no, the -- we're still very actively engaged on the next-gen GPU and ASIC, on high-performance CPU projects with a number of the hyperscalers and chip manufacturers globally, actually, not just in North America. So no, that's been going really well. And we've got a next-generation product technology that they're really interested in because of the current density that we offer. And the currents are just continuing to go up. And actually, this quarter, I would say that we've seen an uptick in the 48-volt interest from some of the companies that hyperscalers that have been lagging behind, if you like, in converting data centers to 48 volts. We've got a couple of really great conversations going on right now. They're early, but I'm confident that they will turn into opportunities for Vicor. And it's really nice to see that the 48-volt prediction of -- is finally coming to bear in the marketplace. So it's been an exciting quarter.\nNathaniel Quinn Bolton -- Needham & Company, LLC, Research Division -- Analyst\nGreat. And Phil, I wanted to follow up. You had made some comments on the automotive design pipeline. It seems like you continue to expand your engagement. Should we still be thinking about calendar 2023 as when you start to see some of the initial revenue ramp? I know you're probably shipping some sample revenue today. But in terms of the meaningful ramp, that's still a calendar 2023 program? Or could there be opportunities, say, in things like charging stations that might even ramp before then?\nPhilip D. Davies -- Corporate Vice President, Global Sales and Marketing\n", "Yes, the charging station -- or the charging opportunity for us is really on vehicle. I mean, that's what we're really focused on. So yes, you're right. It's really toward, I would say, middle to end of 2023 in terms of the early ramps with some of the early customers that we have. And then picking up through 2024 and 20'25, and the opportunities that the team is developing for the company are very exciting. And I mentioned in some of my remarks, the market is changing, too. I mean, the electrification challenge has always been there, and it's picking up. But the OEMs are really looking at supply chains very hard. And looking to the companies that can bring the next-generation technology to them, but at the right value. And that's changing the supply chain, too. So I think as we go through this year, we'll probably be announcing some engagements with partners that will help us bring the automotive opportunity, I think, even bigger than the one from just supplying modules.\nNathaniel Quinn Bolton -- Needham & Company, LLC, Research Division -- Analyst\nGreat, thank you.\nOperator\nThe next one is coming from Jon Tanwanteng. Please go ahead.\nJonathan E. Tanwanteng -- CJS Securities, Inc. -- MD\nHi, guys. Nice quarter and thank you for taking my question.. I just wanted to address the new facility and how you've been limited -- or will be limited this year to that 7% sequentially. Do you immediately break through that limitation as you get the new facility online in Q1? Or is there some other constraints that we should be thinking about that maybe you're not going to deal if you go past that?\nPatrizio Vinciarelli -- Chairman of the Board, President and Chief Executive Officer\nNo, with the turn on capacity after completion of validation, after all the equipment is installed, the s" ]

[ "e ongoing inventory correction, we observe a high level of customer engagement at both N3 and N3E with a number of tape-outs more than two times than that of N5 in its first and second year. Thus, we are working closely with our tool supplier to address toward delivery challenges and prepare more 3-nanometer capacity to support our customers with strong demand in 2023, 2024 and beyond.\nOur 3-nanometer technology will be the most advanced semiconductor technology in both PPA and transistor technology when it is introduced. We are confident that N3 family will be another large and long-lasting node for TSMC. Finally, let me talk about the future driver of leading node adoption. TSMC's ambition is to be the trusted technology and capacity provider for the global logic IC industry for years to come.\nOur job is to help our customers unleash their innovations and enable them to capture greater value and win in their end markets. As the industry continues to pursue scaling, it is true that damage shrink is slowing down and becoming more challenging for everyone due to rising process complexity. However, it is also true that demand for energy-efficient computing is accelerating in an intelligent and connected world as technology is becoming more pervasive and essential in people's lives. The semiconductor industry value in the supply chain is increasing, and the value of technology platform is expanding beyond the scope of geometry shrink alone and increasingly toward greater power efficiency.\nAs a result, our customers value much more than simply transistor cost. System performance and power efficiency has become key motivation for customers who adopt our leading node technologies. By working closely with our customer and technology development, our N3 and N2 will deliver full node stride in performance and power benefits while offering the industry's most advanced transistor scaling. We expect strong demand for our leading node technologies, driven by both smartphone and HPC applications to fuel our long-term revenue growth of 15% to 20% CAGR over the next several years in U.S.\ndollar terms. With our leadership in both leading-edge process technology and 3D solutions, TSMC's technology cadence remain constant to deliver the value of our technology platform. We will continue to extend our overall competitiveness and technology leadership while delivering a predictable technology cadence that help our customers to enhance their product competitiveness and grow their market well into the future. This concluding our key message, and thank you for your attention.\nJeff Su\n", "Thank you, C.C. This concludes our prepared statements. Before we begin the Q&A session, I would like to remind everybody to please limit your questions to two at a time to allow all the participants an opportunity to ask questions. Should you wish to raise your question in Chinese, I will translate it to English before our Management answers your question.\n[Operator instructions] Now let's begin the Q&A session, operator can we please proceed with the first participant on the line.\nQuestions & Answers:\nOperator\nYes, Jeff. The first one to ask questions Gokul Hariharan from J.P. Morgan. Go ahead, please.\nGokul Hariharan -- JPMorgan Chase and Company -- Analyst\nYes, good afternoon and thanks for taking my question. Congrats on the great results, especially on the margins. So the first question is on N7 and N6, this utilization slack that we are observing. Could we give a little bit more detail on why that is happening and why we think this is short-lived, a couple of quarters issue and we get a pick back in the utilization in the second half of the year? And I think last time we saw, this was for 28-nanometer, but that lasted for a much longer period of time.\nSo could you also give us some kind of comparison with what happened back in 28-nanometer and why this is going to be very different? And maybe a little bit more color on what are the areas of backfill demand for N7 and N6 as the high-end smartphone processors and HPC start to move on to N5 and then N3. That's " ]

[ "mands and our ability to expand capacity to meet customer demand is beginning to open up new avenues of opportunities in multiple applications.\nOf our peers, we believe that we are in the best position to be able to respond. In Q3, indium phosphide and sequential growth were driven by 4G and 5G telecommunication obligations as well as continued healthcare -- healthy demand for data center connectivity. We believe that these applications are closely related and as the exponential growth in data necessities, both the infrastructure to move it as well as our capability to efficiently handle and store it. From a substrate perspective, any modernization of telecom and datacom center infrastructure that utilizes indium phosphide is positive for our business whether that's PONs, fronthaul or backhaul infrastructure or silicon photonics buildout that's within the data center.\nWhile there will be -- continue to be quarter-to-quarter fluctuations, we believe that we have reached a tipping point in which the application that will require indium phosphide have become an essential part of modernization of telecommunications business. And in addition to these major applications, we believe there are significant new applications for indium phosphide now visible on the horizon in healthcare monitoring, automotive sensors, and more. Among the AXT's competitive advantage in indium phosphide is our ability to scale manufacturing volume quickly and efficiently to meet rising demand. In addition, we have been told by multiple customers that our VGF raw material uniformity as well as consistently provide the industry lowest EPD level, which are an essential requirement for high-performance applications in Tier 1 specifications.\nNow turning to indium -- gallium arsenide. In Q3, we posted our highest quarterly revenue in more than four years. In our semiconductor gallium arsenide, we continue to see strong demand for high-end LED applications, including automotive and lighting and display. We are also seeing rapid growth in high-powered lasers, particularly in China.\nOn wireless side, IoT continues to be that strong. In addition, with 6-inch capacity tightening up in our industry, we're beginning to see demand from customers -- from -- renewed customer demand interest in gallium arsenide for HBT devices and our ability to expand capacity. This has not been a strong application for us for many -- more than 10 years, and our facilities give us the opportunity to be competitive and when stocked. As we look ahead to the evolution of gallium arsenide in high-tech applications, we believe micro LED, in particular, hold great promises for our industry.\n", "Major customer device manufacturers are behind the development of the technology for a variety of our applications, including televisions, AR-VR headsets and portable devices and others. Micro LEDs, which should not be confused with mini LEDs, uses gallium arsenide to make red, for the red, blue green led modules that we can provide almost any color. Micro LED devices are expected to consume less power, provide sharper contrasts, and produce brilliant lighting and colors. We're seeing reports that the potential micro LED market for smaller consumer devices like wearables and phones could be larger than the entire current market for gallium arsenide substrate today.\nRegardless of the specific numbers, this is an exciting space and could add significantly new value to the LED market in 2024 and beyond. Now turning to R&D. We continue to progress on the development of 8-inch gallium arsenide wafers. Among the many benefits to our customers, 8-inch gallium arsenide will help to enable -- to scale and cost effectively, which is required for very high-volume applications.\nAnd as you know, every step up in diameter size comes with a major increase in the technical challenges of producing it but we have successfully delivered sample quantities to interested customers and we are working with them to meet the requirement of their emerging projects. Moving now to germanium substrates. Revenue have decreased modest" ]

[ ", Mike, on the -- on K-C Strategy 2020, I guess, my question here is around just how you're prioritizing investments that encompass that strategy. Are there capabilities that you think you can still make progress on in this environment? Or maybe take on more urgency versus others that need to be deferred or just seem little bit less critical today versus even a few months ago. Can you just give us some color there?\nMichael D. Hsu -- Chairman and Chief Executive Officer\nYeah, I think the capabilities are all critical for moving forward, and they're foundational for a consumer products good company. I mean, I'll just kind of walk you through and we're kind of using them all right now, right? Innovation, a big one; marketing with a special emphasis on digital; the sales execution or end market execution and revenue management. And so if you click through all those, I think they all have important effects for us this year. Innovation, we're seeing strong traction in China, Central and Eastern Europe, North America on our product launches, and so we want to continue those. Obviously, digital is kind of how we are competing and it's really the lion's share of our media investment. And so we got to get better at that and continuously. I think if you think about this environment, though a lot of it does come down to the end-market execution and we're still seeing very strong execution locally. And that matters more when we are in a tight supply situation, the coordination there. And then lastly, the revenue management, I think that will be -- I think that's important capability and I'm especially given what we might anticipate some recessionary impacts and what that might do to create pressure in the promotion or pricing environment, and we're very glad we have that capability to help us manage through that in an effective way. So, yeah, we're -- Yeah, go ahead, Maria.\nMaria Henry -- Chief Financial Officer\n", "Yeah, I'd just add on there that we came out of the gate strong as you would have expected in the first quarter and as we discussed our K-C 2022 strategies with you back in January. We executed that right out of the gate, and you saw that come through in the numbers on the -- between the lines spending with advertising being up meaningfully in the quarter and also investment around the capability areas that Mike just described. We've already talked about how we see the advertising spend and trade spend in this environment. And then on the capability building activities, as you can imagine, again, with things like travel restrictions in place, some of the spend on those programs will take a pause here in the near term, especially in the second quarter, just as people can't get to where they need to be in terms of some of the work that we were planning to do there. So strong out of the gate in the first quarter, completely in line with what we talked about and our growth strategy around K-C 2022, a bit of a pause given the restrictions here in the near term. But as soon as we can turn those activities back on full speed, we remain fully committed to them and we certainly will do that.\nSteve Powers -- Deutsche Bank -- Analyst\nOkay. That's great. And I guess, the second question if I could. And you've talked a little bit about -- I just want to really hone in on it and be clear about how you're thinking about the expected trajectory of net price and mix realization through this cycle versus what we've all experienced in the past. Because it sounds like -- because of input cost deflation and recessionary pressures, it sounds like you're saying we might see more trade down our net price givebacks promotion in developed markets just once we get through the surge of demand. And while pricing will undoubtedly be sought after in D&E markets to offset FX, it sounds like you're preparing us to -- that we might see less than we might have expected based on past precedent. I just -- I don't want put words in your mouth. I just want to run that back by you. And is that what we've -- is that what I should have heard because I just want to ta" ]

[ "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" ]

[ "driver on development is the strong development teams that we have who are focused and incentivized to go create great results on the development front, and they have an improved set of capabilities. We're now bringing analytics to bear and how we set our development plans in a number of markets around the globe. We're bringing new prototypes to bear. We talked about the Go Mobile concept, which is primed for digital growth with Taco Bell. We have similar examples in other brands. So it's a broad set of drivers that are supporting this growth. And you've seen this trajectory change, in particular, in the Pizza Hut business. That's been an important driver of where the numbers are. Pizza Hut International putting up plus-200 in the quarter, that's more than 300 better than where they were a year ago and you've seen Pizza Hut U.S. stabilize. So those are also important drivers. So broad-based strength in development right now.\nDavid Gibbs -- Chief Executive Officer\nYeah. As far as the issue of pent-up demand, I'm sure there's some units that spilled over from 2020 into 2021, but we do believe that these trends and development will continue. We think we've gotten to a new level on development. That's why we raised our development guidance on the last earnings call. And look, we're talking about net new units. Let's talk about gross new units for the quarter. In the quarter, we opened over 1,000 gross new units. That's a store every other hour, basically, all quarter long, pretty amazing. And when you think about just a side effect of that, how we're modernizing the estate with that kind of development, it's really encouraging.\nOperator\nThe next question comes from John Ivankoe with J.P. Morgan. Please go ahead.\nJohn Ivankoe -- J.P. Morgan -- Analyst\n", "Hi, thank you very much. I think a lot of us on the call know kind of what the U.S. issues are in terms of construction labor and permitting and even equipment, but I wanted you to kind of give us a rest of the world view in terms of how supply chains are around equipment and your ability to, I guess, keep this current rate of development over the next couple of quarters. And, of course, asset in the context of your supply chain seems to have gotten worse in the past six months and perhaps some of the stores that opened in the third quarter benefited from what was ordered six months ago or even longer. Do you expect this momentum to continue? Is there that pipeline, just in terms of overall supply chain constraints, however you want to define it, that you feel good on a market-by-market basis?\nDavid Gibbs -- Chief Executive Officer\nYeah. Thanks a bunch, John, it's a good question. And I think this is where the strength of our operating model and our capability sets around sourcing really shines. We saw some of those supply chain challenges related to equipment that are sort of a global challenge. We saw those on the horizon early this year and our supply chain teams were building resiliency plans at that point and they worked with our franchisees around the globe to get ahead on purchasing for those equipment and reserving capacity with suppliers. There are certainly going to be some local challenges here and there related to permitting, but again this is where that capabilities that helped us get ahead, plus our larger more sophisticated franchisees who invest ahead, they have sophisticated teams who are driving their development and that's a big asset here as well. So yeah, we probably left a few units on the table this year as a result of that, but in general, we don't see that as a constraint on our long-term development path.\nOperator\nThe next question comes from Jon Tower with Wells Fargo. Please go ahead.\nJon Tower -- Wells Fargo Securities -- Analyst\nAwesome. Thank you for taking the question. Just real quick in terms of thinking about the value proposition to the consumer and obviously the inflation that's running through the market today. Curious to know how your franchisees are handling the pricing situation now and then heading into '22 with obviously wage rate infla" ]

[ "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" ]

[ "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 " ]

[ "nd control of 5G and all other wireless services. Over in Europe, we have expanded our partnership with A1 Telecom Austria Group with a multi-year deal to provide digital monetization using Openet 5G charging and policy products and services, and at Globe Telecom in the Philippines we have successfully implemented the Amdocs Openet solution on AWS cloud to support GOMO, Globe's fully digital telecom brand.\nOverall, we are pleased with Openet's recent progress and its proven ability to support the future charging and policy needs of the world's service providers as they accelerate their 5G investments.\nTo wrap-up, I am pleased with the strong start we have made to the fiscal year, especially amid the great uncertainty regarding the spread and severity of the COVID-19 pandemic which continues to adversely affect the global economic outlook. We remain on track to deliver accelerated growth in fiscal 2021 on a pro forma basis, consistent with our previous guidance, and we continue to expect a stronger second half as we execute on our strategy and ramp up recent customer awards.\nOur confidence in the outlook is supported by the visibility of our backlog, our proven ability to execute, the accountability we provide to our customers and our focused strategy which we believe is aligned with the needs of the market.\nWith our commitment to profitability and disciplined use of cash, we remain well placed to deliver total shareholder returns of almost 10% in fiscal 2021, including a slightly improved outlook for pro forma non-GAAP earnings-per-share growth of 7.5% at the midpoint of our new guidance range, plus our dividend yield.\nFinally, I would like to take a moment to thank our employees for supporting our social responsibilities and related activities, including our mission to drive connectivity and digital inclusion in the many communities in which we operate worldwide. Throughout the global pandemic, people's ability to interact, access services, learn and work has been essential. Our focus on enabling digital inclusion runs across our offerings but also extends to our communities: from Internet connectivity and accessibility, to digital literacy and advanced skills training.\n", "For example, we are connecting four schools in Kenya to the Internet, giving the opportunity to more than 7,000 children to use this window to the world in collaboration with Safaricom foundation. In addition to donating thousands of computers to under-represented populations, many of our employees are also teaching different populations how to access the Internet, providing tailor-made digital skills training, and helping future generation to become more employable in the tech sector. We are committed to the journey toward digital inclusion. We will continue to serve societies where they need us the most.\nWith that, let me turn the call to Tamar for her remarks.\nTamar Rapaport-Dagim -- Joint Chief Financial and Operating Officer\nThank you, Shuky. Since we completed the divestiture of OpenMarket on December 31, 2020, our reported numbers for income statement and cash flow in the first quarter fiscal 2021 still include OpenMarket, but the reported balance sheet as of December 31, 2020 and the 12 months backlog metric already excludes OpenMarket. In order to provide you with a sense of the underlying business trends, my comments today will refer to certain financial metrics on a pro forma basis, which exclude the financial impact of OpenMarket from the current fiscal year and comparable fiscal year period.\nFirst fiscal quarter revenue of $1.086 billion was above the midpoint of our guidance range of $1.055 billion to $1.095 billion, both on a reported and constant currency basis. Revenue includes a positive impact from foreign currency fluctuations of approximately $5 million relative to the fourth fiscal quarter of 2020 and $6 million relative to guidance. On a year-over-year basis, our first quarter revenue grew by 4.3% as reported and 3.7% on constant currency.\nOur first fiscal quarter non-GAAP operating margin was 17.3%, above the midpoint of our long-" ]

[ "Atlanta (CNN) -- Republican presidential hopeful Herman Cain told supporters Saturday that he is suspending his presidential campaign, which has become hobbled in recent weeks by allegations of sexual harassment and an Atlanta woman's claim that they carried on a 13-year affair. While he will still be able to raise and spend campaign funds because he did not officially drop out, Cain's White House bid is effectively over. Cain said he came to the decision after assessing the impact that the allegations were having on his wife, his family and his supporters. Cain and his wife, Gloria, held hands as they walked up to the podium where Cain made his remarks in Atlanta. The crowd chanted, \"Gloria! Gloria!\" before the candidate spoke. Even as he stepped aside under the weight of the allegations that have dogged him, Cain said that he was at \"peace with my God\" and \"peace with my wife.\" He repeatedly called the allegations \"false and untrue,\" and added that \"the (media) spin hurts.\" \"I am not going to be silenced and I will not go away,\" Cain said, announcing what he called his Plan B: A website, TheCainSolutions.com, through which he will continue to advocate for his platform. His catchy \"9-9-9\" economic plan is not going anywhere, he said. \"Your support has been unwavering and undying,\" Cain told his supporters. He will endorse another of the Republican presidential hopefuls soon, he said. Other candidates were quick to react. \"Herman Cain provided an important voice to this process,\" Minnesota Rep. Michele Bachmann said in a statement. \"His ideas and energy generated tremendous enthusiasm for the conservative movement at a time it was so desperately needed to restore confidence in our country.\" Fellow Georgian Newt Gingrich said the \"9-9-9\" plan \"got our country talking about the critical issue of how to reform our tax code and he elevated the dialogue of the Republican presidential primary in the process.\" Texas Gov. Rick Perry said he knew the Cains made a \"difficult decision. He helped invigorate conservative voters and our nation with a discussion of major tax reform.\" Former Utah Gov. Jon Huntsman said Cain brought \"a unique and valuable voice to the debate over how to reform our country's uncompetitive tax code and turn around the economy. I understand his decision and wish him and his family the best.\" ", "Recently, Cain acknowledged that Ginger White's allegations of an affair have led to a drop in campaign contributions, and a Des Moines Register poll showed his support among likely Republican Iowa caucus-goers has fallen to 8%, down from 23% in October. The poll has a sampling error of plus or minus 4.9 points, the newspaper said. Respondents said they were most concerned that Cain does not understand important issues, but said the allegations against him contribute to their concern, the newspaper said. This week, White told the news media that she and Cain engaged in an on-and-off affair for more than 13 years. She described the affair as \"very casual.\" White issued a statement, through her attorney, after Cain's announcement Saturday. \"Ginger White respects Mr. Cain's decision regarding his campaign and indeed would have respected any decision he made,\" the statement said. \"That being said, she is disappointed that he has not apologized for the public statements he has made about her and other women who have spoken out.\" In a fund-raising letter Tuesday night, Cain referred to White as \"troubled.\" Two women -- Sharon Bialek and Karen Kraushaar -- previously accused Cain of sexually harassing them in the 1990s while he was head of the National Restaurant Association. Two other women also have said Cain sexually harassed them while they worked at the association, but they have declined to be identified. Cain told the Union Leader in New Hampshire that he repeatedly gave White money to help her with \"month-to-month bills and expenses.\" But" ]

[ "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," ]

[ "Three U.S. soldiers were killed and 31 others wounded in two rocket attacks Sunday afternoon in Baghdad, the U.S. military said. Mehdi Army militiamen celebrate after attacking an Iraqi Army vehicle in Baghdad's Sadr City on Sunday. Earlier Sunday, fighting between U.S. troops and the Mehdi Army militia loyal to Shiite cleric Muqtada al-Sadr left at least 20 dead and 52 wounded in Baghdad's Sadr City, according to an Iraqi Interior Ministry official. The U.S. military said it had no information about the Sadr City fighting. Sunday's violence came as Iraqi Prime Minister Nuri al-Maliki demanded al-Sadr disband his Mehdi Army and threatened to bar al-Sadr's followers from the political process if the cleric refused. Watch a report from the front line in Sadr City » \"A decision was taken yesterday that they no longer have a right to participate in the political process or take part in the upcoming elections unless they end the Mehdi Army,\" al-Maliki said. Sunday's American fatalities bring the death toll of U.S. troops in the Iraq war to 4,022; that toll includes eight civilian contractors working for the Pentagon. Nearly 30,000 others have been wounded in action. An attack involving a \"couple of rounds\" of fire on the International Zone, also known as the Green Zone, killed two soldiers and wounded 17 others about 3:30 p.m., a military official said, declining to give the specific location of the attack for security reasons. A separate attack about 30 minutes earlier killed one soldier and wounded 14 at a U.S. military outpost in Rustamiya in southeastern Baghdad, the military said. Responding to al-Maliki's comments, a spokesman for al-Sadr, Sheikh Salah al-Obeidi, said that any effort to bar Sadrists from participation in politics would be unconstitutional -- and that any decision to disband the Mehdi Army is not the government's to make. \"It is up to the side that established it,\" he said. Al-Maliki spoke in an exclusive interview with CNN after a weeklong military offensive against what Iraqi officials called gangs and militia members in the southern Iraqi city of Basra. Hundreds were killed or wounded in the fighting across Iraq, which reportedly ended when Iranian and Iraqi Shiite officials held talks in Iran with al-Sadr. ", "Asked about Iran's role in ending the Basra conflict, al-Maliki attributed the cease-fire to the work of his security forces. Haidar al-Abadi, an Iraqi lawmaker who belongs to al-Maliki's Dawa Party, said last week that Iranian officials participated in the discussions, and another source close to the talks said the Iranians pressured al-Sadr to craft an agreement. \"I am not aware of such an attempt,\" al-Maliki said Sunday. \"What happened on the ground and the breakdown in the structure of this militia is what made Muqtada al-Sadr issue his statement to withdraw his militants from the streets. What happened was something to save Muqtada, not to help us.\" Watch al-Maliki talk about issues that concern Iraq » In northern Iraq, security forces detained a suspect Sunday and were searching for others in connection with the kidnapping of 42 college students, authorities said. Gunmen seized the male students in northern Iraq before releasing them several hours later, according to a military spokesman and police in Nineveh province. None was harmed, according to the U.S. military. Gunmen stopped two buses loaded with students who were on their way to college, but one bus managed to escape, police said. Four students on the bus that escaped were wounded by gunfire, police said. Students on the other bus were released Sunday afternoon after coalition military forces spotted the bus during an air patrol on the western outskirts of Mosul, according to a U.S. military news release. The kidnappers fled the vehicle after it was stopped, according to a military press release. Other developments • A Christian priest was shot and killed in eastern Baghdad's Wihda neighborhood around noon Saturday, according to an Iraqi Interior Ministry official. The priest" ]

[ " Combining FundsLibrary's capabilities to fund document and data dissemination with Broadridge's existing regulatory communications offerings will strengthen our business in Europe and elsewhere by helping fund managers meet the regulatory requirements across multiple jurisdictions. Coming on the back of our other recent acquisitions, including Rockall and RPM in the fourth quarter, and Shadow and Fi360 early in the second quarter, Broadridge is continuing to push hard on strengthening our core franchise business across governance, capital markets and wealth. These acquisitions will extend our ability to bring value to our clients and are integral part of our capital stewardship and long-term growth strategy.\nAnother key part of our value proposition is helping our clients access new technologies, especially across the ABCDs of innovation, AI, Blockchain, Cloud and Digital. So I'm excited by the launch of the Broadridge Private Cloud powered by IBM. By transitioning our global distributor technology platforms at IBM, we will be able to accelerate our hybrid multi-cloud strategy. Broadridge Private Cloud will enable us to more rapidly provision additional capacity of services for our global clients, while increasing overall resilience of our network. Extending our long-standing partnership with IBM also positions us to use Red Hat technology to containerize our apps, which enables them to run both in our private cloud as well as on AWS. Accelerating our hybrid cloud strategy will enable Broadridge to further deliver next generation SaaS solutions.\nInvesting in new products and capabilities is a key part of our formula for long-term success. We're funding these growth investments even in a year when we were seeing pressure from event-driven revenues and technology investments across the ABCDs [Phonetic]. These investments are translating into a very healthy pipeline of innovative new capabilities that create additional value for clients and shareholders, driving top quartile results over time. In governance, we're rolling out modernized proxy templates as we speak. We're launching an industry solution for 30e-3, and we've introduced a new global fund analytics platform. We're bringing enhanced digital capabilities to our communications clients, and using distributed ledger technology to enable European banks and brokers to meet the requirements and the Shareholder Rights Directive. Capital markets. We continue to strengthen our Global Post Trade Management platform. We're also expecting a soft launch over the summer of our AI-driven fixed income trading capability, and launching a repo market solutions based on blockchain in fiscal '21. We expect both of these internal builds to contribute meaningfully in the future.\n", "And of course, we're making very good progress in building the next-generation industry platform for the wealth management industry, which we expect will come live in 2021. Earlier this week, we named Mike Alexander as head of our newly combined wealth business, an important milestone in the creation of this new franchise. This January 2, I've met with more than a dozen CEOs and other senior leaders at our largest clients. These conversations leave me more convinced than ever about the opportunity we have in front of us. It's clear that financial services CEOs are very engaged in driving technology and business transformation, and they're are excited about Broadridge as a key partner with them on industry solution with next-generation technology that will simplify and improve their operations.\nFor all these reasons, our technology leadership, organic product investments, continued tuck-in M&A, and healthy sales pipeline, I'm confident and excited about how Broadridge is capitalizing on a strong and growing market opportunity to create sustained growth not only in the second half of fiscal 2020, but well into the future.\nBefore I turn the call over to Jim, I want to thank our associates for the work they do to help our clients and enable better financial lives for millions by powering investing, governance and " ]

[ " the things that we're seeing in 2023, we've got some expected abating headwinds when we go into 2024. Jim mentioned a little bit on supply chain. That's primarily affected our programs of record.\nAnd so, those should lift by the time we get to 2024. We also have a few program transitions in 2023 that will also allow for easier comparison when we get into 2024. And so, for example, I just mentioned the F-35 where production will be down next year. Those will normalize when we get into 2024, which will allow our sustainment to grow, as Jim mentioned.\nWe'll also see accelerated growth in the F-16 program. As you may recall, that program slipped to the right. But in 2024, we expect that to accelerate. In space, as Jim mentioned, FBM, there are other programs such as NGI that will continue to grow.\nAnd so, we've got some things where we're cycling down this -- on 2023 on the SIBRS program and even things like next gen GEO or OPIR, again, those headwinds will abate as we get into 2024. Similarly, on MFC, Jim mentioned the PAC-3 program. We'll see also continued growth there in the classified programs as well. And then, at RMS, as Jim mentioned, also at CH-53K, there's also other radar programs, as well as Joint All Domain-type programs like Defense of Guam that will drive some growth in those years.\nSo all of these areas and these programs are the ones that we have pretty clear visibility to. They do assume obviously that there is abatement to an improvement in supply chain. That's 15 months from now for improvement that we expect to occur.\nOperator\nOur next question is from Matt Akers with Wells Fargo. Please go ahead.\nMatt Akers -- Wells Fargo Securities -- Analyst\nYeah. Hi. Thanks for the question. And Greg, best of luck and good working with you.\nI wanted to ask about Future Vertical Lift, FLRAA, just what you're hearing from your customers there on the delays. And any indication of what's driving that and when do you think that contract might be up?\nJim Taiclet -- Chairman, President, and Chief Executive Officer\n", "Matt, it's Jim. The only thing we could say about the schedule for FLRAA decision is what the US government puts out publicly. So we don't have anything else to add to that. It's their schedule and timeline, and we think we've put in a terrific offer.\nAnd also having been around some of these helicopter pilots in my Air Force time, they actually scared the heck out of me a couple of times when I flew with them. They want to be low. They want to be maneuverable below the tree line. And I've seen the FARA and FLRAA fly.\nThey can do it. There's a video you can look at on YouTube that shows you how amazing this helicopter technology is. And it also gets you up to like a 230- to 250-knot forward speed when you need it, so it gives the best of both worlds if you're in the rotorcraft business as a flyer. You get good forward speed that's faster than it's ever been for traditionally designed helicopter because of our kind of rotating rotors, and it also gives you the maneuverability even better than many of the traditional helicopters could have provided.\nSo we think it's the best solution for the actual frontline Army or other service pilot, and it's going to be up the US government to see where they come out on that. But the schedule is theirs, and we can't really comment on it.\nOperator\nNext, we'll go to Pete Skibitski with Alembic Global Advisors. Please go ahead.\nPete Skibitski -- Alembic Global -- Analyst\nHey, good morning, guys. Greg, enjoy your retirement. Jim, I had a question on missiles and fire control. I feel like the last few years, you've had -- production programs have been down, but you mentioned this resurgence in the PAC-3.\nAnd USA., it seemed like the guys were pretty positive on a range of production programs, HIMARS, for instance, being one of them because of what we've seen in the papers. But if we think about the midterm at missiles and fire control with this kind of resurgence in the production programs, is there a margin opportunity there now that you guys are seeing, whereas maybe the productio" ]

[ " next question comes from Michael Turits from Raymond James, your line is open.\nEric Heath -- Raymond James -- Analyst\nThis is Eric Heath on for Michael. I just wanted to follow up on an earlier question on service provider. And just ask a little bit more specifically how you may be incorporating 5G into your outlook for this year in going forward?\nKen Xie -- Founder, Chairman and Chief Executive Officer\nIt's still a lot early at least a few quarters away we'll see anything impact by the 5G or helping from the 5G. But we do have the product already there. It's also working with service provider to see what's the best way to secure the 5G network and also a lot of other growth actually has come from the OT IoT which also leverage the 5G. That's where -- I see probably 5G into certain area like healthcare, like a certain industry, maybe growth security probably ahead on some of our broad 5G approach for consumer in the care space.\nEric Heath -- Raymond James -- Analyst\nGot it. That's helpful and then just separately, could you give us an update on your partnership with Symantec? How much are you going to market together and kind of how has traction been so far?\nKen Xie -- Founder, Chairman and Chief Executive Officer\nI think the market approach, a progress there and also, that's one of the very important partnership we have to go to market together. I think the few sales that are engaged working together and it's healthy for both company.\nEric Heath -- Raymond James -- Analyst\nThank you.\nOperator\nThank you. Our next question comes from Melissa Franchi from Morgan Stanley, your line is open.\nUnidentified Participant\nHi, this is Hamza Farwal [Phonetic] in for Melissa. Thank you for taking my questions. So just on the macro front, you touched on EMEA earlier, you also have about a quarter of your revenue coming from APAC. Any concerns within that region? Obviously, the trade tensions we had with some of the new tariff announcements earlier today and how that could sort of impact growth within the region more broadly? I also notice you had a recent partnership announcement, Alibaba. Just any commentary on that would be helpful.\nKeith Jensen -- Chief Financial Officer\n", "Yes, Ham, it's Keith. Perhaps in reverse order. Yes, we are very pleased with the announcement -- the Alibaba announcement that you saw. China by itself has not been a large contributor to our business historically for the last several years. Regarding tariffs, we saw the announcement earlier today. This and double-checking on that, make sure that we are still fine with our guidance and we're very fine. We do have some production as I mentioned before that's done in China but the majority is outside of China. And then I guess the last comment I would offer is that, for us, the Asia-Pac area is obviously is a very diverse geography covering many countries all the way from Australia, New Zealand up through South Korea, Japan, Taiwan, etc..\nUnidentified Participant\nGot it. And then just on the SD-WAN early momentum. The six deals that you mentioned above $1 million, were those bundle deals with the SD-WAN used case of cash? Or were those deals primarily led with the SD-WAN and value proposition? And that's it for me.\nKen Xie -- Founder, Chairman and Chief Executive Officer\nYes, I think it's more lead by the SD-WAN. Even some of them unable to secure the function to begin with, but I don't see the advantage of a security capability in a box that whenever they need it we'll turn it off.\nUnidentified Participant\nThank you very much.\nKen Xie -- Founder, Chairman and Chief Executive Officer\nThank you.\nOperator\nThank you. Our next question comes from Dan Ives from Wedbush Securities. Your line is open.\nDan Ives -- Wedbush Securities -- Analyst\nYes. Have sales cycles changed on the larger deals? I mean are they starting to now shorten, given it seems like it's a little more downhill skiing for you guys? Had you sign some seven-figure deals?\nKeith Jensen -- Chief Financial Officer\nYes, I think the enterprise, by and large, a new enterprise logo, I think the sales cycle is wh" ]

[ "Today, I met Cleopatra's lawyer. Well, not her lawyer but someone who is determined to defend the legendary queen against centuries of bad publicity. Kathleen Martinez, an archaeologist from the Dominican Republic, wants to mend Cleopatra's tattered reputation. Kathleen Martinez is a young archaeologist from the Dominican Republic who has toiled for three years on a barren hillside overlooking the coastal highway linking Alexandria with the Libyan border. According to the Egyptian Supreme Council of Antiquities, it's here, at a spot known as Abusir, that the tomb of Marc Antony and Cleopatra might be located. I met Martinez in a dusty tomb full of bones at the excavation site. She recounted to me that, as a young girl, she listened in on a scholarly discussion in her father's library about Cleopatra. \"They were speaking very badly about her and about her image,\" she recalled. \"I got very upset. I said I didn't believe what they are saying, that I needed to study more about her.\" Martinez went on to earn a law degree but continued to be fascinated by the saga of Cleopatra. Four years ago, she managed to convince Zahi Hawass, the untiring director of the Egyptian Supreme Council of Antiquities, to allow her to start excavating at Abusir. Her fascination with -- and admiration for -- Cleopatra is intense. The last queen of Ancient Egypt, she told me, \"spoke nine languages, she was a philosopher, she was a poet, she was a politician, she was a goddess, and she was a warrior.\" In short, Martinez believes, Cleopatra was a woman way ahead of her times. And given that history is written by the victors -- in Cleopatra's case, the Romans -- her press was somewhat less than complimentary. It was \"bad propaganda,\" in Martinez's words. For that reason, she told me, \"I want to be Cleopatra's lawyer.\" With Hawass, Martinez is now working on a book about Cleopatra to repair all that damage. The tale of Antony and Cleopatra has fueled the popular imagination for centuries. Ill-fated lovers were a favorite theme for William Shakespeare, and the Roman noble and the Egyptian queen certainly fit the bill. Marc Antony was a no less fascinating character than Cleopatra. In his youth, he led a life of heavy drinking and womanizing. ", "According to the Roman historian Plutarch, Antony accumulated debts of 250 talents, the equivalent of $5 million, before reaching 20. To escape his creditors in Rome, he fled to Greece, where he studied with the philosophers of Athens, before being called to join the Roman legions in the east, then serving under Julius Caesar. After Caesar's assassination, Marc Antony became embroiled in a series of power struggles and eventually ended up in Egypt. Egypt was the enemy of his former ally, Octavian, who would go on to become the Emperor Augustus, the first emperor of Rome. Octavian defeated Antony's forces at the battle of Actium in 30 B.C. Shortly afterward, Antony and Cleopatra committed suicide, he by his own sword, she by a poisonous asp. Octavian, according to Plutarch, allowed them to be buried together \"in splendid and regal fashion.\" But no one knows where. The sudden focus on Antony and Cleopatra has also reignited an old debate over the latter's looks. Was Cleopatra a stunning beauty a la Elizabeth Taylor, or somewhat less spectacular? Researchers from Newcastle University in England claimed in 2007 that, based upon coins found from the period, she was quite homely, with \"a shallow forehead, long, pointed nose, narrow lips and a sharply pointed chin.\" See gallery of tomb that might be Cleopatra's » The same researchers didn't have a very flattering assessment of Marc Antony either, saying he had \"bulging eyes, a large hooked nose and a thick neck.\" No Richard Burton. This does contradict Plutarch's description of Marc Antony as having \"a noble dignity of form; and a shapely" ]

[ "call there is a new attack service or new ads need to be covered. So that's where especially we working with a lot of service provider for the 5G services to a lot of enterprise and connect all these different devices in the OT IoT space. So that we do see is a huge opportunity and so with our position, with the carrier service provider and we do see the 5G can be one of the driving -- growth driver factor for us this year and it could be material toward end of the year. Yeah, is that going forward is also -- it's a huge, huge opportunity even secure whether -- yeah, the whole -- it's part of the whole infrastructure and switch grow moreover fast and a lot of our carrier service providers starting to have a investment in this area also.\nKeith Bachman -- BMO Capital Markets -- Analyst\nOkay, interesting. Okay. And then Keith one for you. For the guidance of '21, you talked about capex. Any other puts and takes you want us to think about as it relates to OCF or operating cash flow?\nKeith Jensen -- Chief Financial Officer\nNo, not really. I mean, I made the point about inventory, the turns came in for us pretty strong in the fourth quarter, but I think that's a direct reflection of the success that we have in the product revenue line in the fourth quarter. So that was probably better than we expected. I do think during this pandemic era that we'll continue to maintain a somewhat higher levels of inventory. I think that's in our best interest. This extended payment term program, I think that every CFO wants to wanting that down as fast as possible and every distributor wants to hold on to it for dealer life. So that will be an ongoing battle for us throughout 2021 I think.\nKeith Bachman -- BMO Capital Markets -- Analyst\nOkay. Well, congratulations to the whole team. Good set of results. Thank you.\nKeith Jensen -- Chief Financial Officer\nThank you.\nOperator\nThank you. Our next question comes from the line of Ben Bollin with Cleveland Research. Your line is now open.\nBen Bollin -- Cleveland Research -- Analyst\nGood afternoon, Ken, Keith, Peter. Thanks for taking the question. My first question, you've made your aspirations pretty clear in SD-WAN, could you share with us a little bit about aspirations, intentions as you move into SASE in zero-trust, how you see yourself positioned?\n", "Ken Xie -- Founder, Chairman of the Board, and Chief Executive Officer\nSD-WAN is a part of the SASE offering. What we do is a little bit different than competitor we build within the FortiGate, FortiOS, which also can be offer whether it based on the physical appliance or the virtue software or kind of cloud delivering and that's where the new FortiOS 7.0 give all this flexibility and connect a lot of other part of infrastructure and security service together. So that's where we'll continue to see SD-WAN and keeping growing probably -- by market started probably worth keeping grow like 30%, 40% year-over-year this year.\nWe do believe we're also keeping gaining market share and at the same time, the 5G is another opportunity come out. We already offered in the new FortiOS 7.0, which also could be a pretty good drive for the additional growth that we have.\nBen Bollin -- Cleveland Research -- Analyst\nCould you also talk a little bit about how you envision FortiOS 7 rolling out once available, how backward compatible will it be for legacy appliances? And if you've looked at some of the historical OS refreshes, how long does it take the footprint to roll over as this rolls through the base? Thank you.\nKen Xie -- Founder, Chairman of the Board, and Chief Executive Officer\nIt's really depend on customer. Some I have to say the channel probably react little bit faster and then there is enterprise then the service provider, sometimes take a little time because some service provider they also have to support in some of that, but we do see this [Indecipherable] a lot of new opportunity. And they also like these that tightly integrate approach whether SD-WAN or SASE which goes security driven networking which through are able then to offer additional service, addi" ]

[ "In the sunbathed schoolyard of the Shmisani Institute for Girls in Amman, Jordan, principal Sanaa Abu Harb makes an announcement over the speaker system. Iraqi students at the Shmisani school in Amman gather around a teacher. One in 5 students there is Iraqi. \"All Iraqi girls come outside now. All Iraqi girls. Iraqi girls only!\" she repeats several times, making sure the message is clear and waving away Jordanian pupils attracted by the commotion. Dozens of girls in green apron-like uniforms pour out into the courtyard and cluster on the top level of a stone staircase overlooking a concrete playground. Harb wants the CNN crew to see how many Iraqi refugee girls her school is accommodating. This school year, she says, 145 students are Iraqi -- roughly 20 percent of the students at this state-funded institution -- with another 40 Iraqi children on a waiting list. Watch Iraqi girls describe a long way from home » The reason behind the jump in the number of Iraqis at the school is a new government policy: For the first time since the start of the Iraq war, Jordan is allowing all Iraqi children -- regardless of refugee status -- to enroll in state-funded schools. Simply, this means that even illegal refugees with no paperwork can send their kids to school with no questions asked. The move is cementing a massive population shift in the Middle East. More than 2.2 million Iraqis have fled the violence in their homeland, most of them seeking refuge in neighboring Jordan and Syria, according to humanitarian officials. Jordanian Minister of Education Khalid Touqan says he expects Jordan to accommodate 40,000 to 50,000 Iraqi students this year. That's more than double the number of Iraqi children enrolled in public school two years ago. Harb, on the front line of the phenomenon, says the influx is putting a strain on her school. Even with some U.N. and U.S. aid to Jordan, there's still not enough money. \"We need more teachers here, more resources, more buildings, more chairs for all Iraqi students and our students,\" she says. In a nearby neighborhood, in the study room of the Ahmed Toukan School for Boys, a handful of Iraqi kids talk of their experience living far from home. Seated at a rectangular table covered with a red and white tablecloth, the boys tell stories of horror and displacement. ", "Eighteen-year-old Qutaiba lost five immediate family members before moving to Jordan to try to live a normal life. Matter-of-factly and with a straight-ahead stare, he repeats the number: \"Five members.\" Most of the boys and young men from Iraq have missed several years of school -- up to a four-year educational gap that will delay not only their high school graduation, but also their entry into the workforce. All say, though, that they feel lucky to have gotten out, even if the violence in their country means always having to be on the move, ready to live far from home and away from loved ones. \"It's not strange for me to be in the middle of people I don't know,\" says eleventh grader Ziad Tarek Al Shamsi. \"I had friends in Iraq when I was small, I left them. In America, I left them. I came here, I left them.\" He pauses: \"But you have to miss your country.\" The United Nations High Commissioner for Refugees estimates up to 250,000 school-age Iraqi children are in Jordan. Many of them are enrolled in private institutions. But as families run out of money they had when they left Iraq, they turn to public schools. Even so, more than a month into the new academic year, fewer Iraqi families than first anticipated enrolled their kids in schools this year. According to the charity Save the Children, 21,000 Iraqi children have so far enrolled in Jordanian classrooms. As a result, the government extended the deadline for student applications and cut down on the required paperwork for Iraqi families. The lower registration" ]

[ "hole initiative and so it is an extension of our existing platform. Again, neutral host, but it really provide ultimately that cloud ramp which we think is going to be needed to be able to enjoy that kind of latency that our enterprise accounts and customers are going to be looking for.\nTim Long -- Barclays Investment Bank -- Analyst\nOK. Thank you. I just wanted to follow up, when you think about Africa and particularly India, obviously, some aggressive tower build plans over the next few years, but can you just talk a little bit about kind of this year and potential COVID-related risks to those builds and any other risks to the business because of the pandemic? Thank you.\nTom Bartlett -- President and Chief Executive Officer\nYeah. I mean I think that the build itself, our plan, our outlook, I think, is in the 6,000 to 7,000 sites. There could be some timing issues associated with the build. The need is there.\nI'm certain that the sites are going to be built, but particularly in a market like India who are suffering so significantly right now, there can be a timing issue in terms of having essential people out in the marketplace to be able to build. Clearly, lives saved is more important than towers built, so there could be some timing there -- issues. But ultimately, over that five-year period, we are seeing the demand for the 40,000 to 50,000 sites that Rod laid out and our forecast right now is for that 6,000 to 7,000 sites. There could be some timing issues associated with particularly the sites in India.\nI'm not seeing the same implications in Africa at this point in time. And by the way, our overall 6,000 to 7,000 sites, that outlook already includes some carving back of what we are expecting overall in the marketplace. And relative to COVID, overall, as we've seen over the last year, our business is quite resilient, people need connectivity. I think that's been more obvious than ever over this past year, particularly in many of our global markets, and so our customers are doing everything possible that they can to be able to maintain that kind of connectivity.\nWe're doing everything we possibly can to be able to support them, to be able to ensure that kind of connectivity. And so we're working our tails off with our customers to make sure that we can do that.\nTim Long -- Barclays Investment Bank -- Analyst\nOK. Thank you.\nOperator\n", "Your next question comes from the line of Batya Levi from UBS. Please go ahead.\nBatya Levi -- UBS -- Analyst\nA couple of questions. First, on U.S., as you think about your long-term guidance, can you tell us what it assumes in terms of the mix of amendments versus new co-location? And the new site build, that program that you have, what percent of that would be in the U.S.? And as the carriers deploy CDMA, do you have any indication that they're leaning more toward new leases as well? And then maybe just a follow-up on the escalator, Rod. If you can tell us a little bit more why it stepped down and then when it will go back to 3%? And also if the DISH MLA, if you can confirm that to 3% escalator as well. Thank you.\nTom Bartlett -- President and Chief Executive Officer\nI thought you said there were just a couple of questions?\nBatya Levi -- UBS -- Analyst\nI know. I thought we should take this call longer.\nTom Bartlett -- President and Chief Executive Officer\nNo. That's great, that's great. No, thanks for being here and thanks for the question. I'll let Rod take that run with it.\nRod Smith -- Executive Vice President, Chief Financial Officer, and Treasurer\nYeah. Thanks for the question, Batya. So I'll try to remember all of the different aspects here, but if I missed any, just to remind you. Maybe I'll start at the end and work backwards a little bit.\nSo the escalator in the U.S., you saw our escalator for Q1 was about 2.6%. That really was driven by the impact of the timing mechanics within the T-Mobile MLA. As we signed a new MLA with T-Mobile, the escalator shifted from one period to another and that affected the volume of escalator in Q1. But for the full year, we do expect the escalated" ]

[ "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," ]

[ "on to ease. I think indications are that it's improving, but obviously, that's going to be a process because with the congestion at the ports coming in and out, even if -- as things begin to relax, it's going to take some time for stuff to flow through freely. On a more strategic level, when we look at the ramp in our business and especially project into 2023, we are already talking of volumes of components that require call it, attention and real high-volume, long-term agreements with some of the component suppliers. And that's something that we've been active in the last three months is really going between them meeting -- sharing our forecasts, aligning with many of them that are placing renewable energy higher on their priority list and making sure that as part of their expansion plans for the next 12 to 24 months, they're building in the type of capacity that we expect to need looking at the momentum of our business.\nAnd this is across the board. It's transistors. It's IGBTs. It's ASICs from the foundries.\nWith each one of these key suppliers, we are aligning the midterm forecast and building the relationship to ensure the supply that we need. So the short term, we hope that challenges ease in Shanghai, in particular, and in Asia, in general, the flow will resume, and it will make our next couple of quarters or especially from Q3, a bit easier. Looking into 2023, it's really already about increasing significantly the capacity at some of our suppliers and a more strategic relationships with some of these key component manufacturers.\nMark Strouse -- J.P. Morgan -- Analyst\nOK, very helpful. Thank you.\nOperator\nWe'll take our next question from Laura Sanchez with Morgan Stanley. Please go ahead.\nLaura Sanchez -- Morgan Stanley -- Analyst\nHi. Thank you so much. Thank you for taking my question. I think if I can go back to the DOC investigation.\nI'm wondering, do you think installers have sufficient inventories to supply demand for the rest of the year or is it that installers can pass the higher cost to customers in case they start importing from China?\nZvi Lando -- Chief Executive Officer\n", "So I think it's probably a little bit of both. And obviously, it starts with the distributors. And I believe, in particular for residential, the distributors probably have some level of inventory and the distributors and installers still have some room to modify pricing without impacting demand. At a certain point, at a certain point, obviously, that's -- the increase in pricing is going to begin to impact to impact the demand.\nSo I think the duration of this unstable environment is going to be critical to understand if it's a -- if it's a bump, that's just because the whole industry is driving so fast, we are going to pass over without a major impact or if it's a longer and higher bump, it will begin to have some impact toward the end of the year and beginning of next year starting from utility, obviously, which is already impacted, then shifting over to C&I and maybe eventually reaching residential. But probably, it will take longer for that to happen. And hopefully, this whole crisis will be resolved fast enough not to see this type of dynamic.\nLaura Sanchez -- Morgan Stanley -- Analyst\nUnderstood. And as a follow-up, do you think, let's say, like the supply in those four southeastern countries. Do you think it's possible that they can start supplying the strong demand in Europe, in which case, as you highlighted before, a lot of your revenues, I think over 50%, comes from Europe. So I'm trying to think or see if there could be -- if we see an impact in the U.S.\nfrom the DOC investigation, if that could be potentially offset by stronger demand in Europe, especially if there is a manufacturing constraint that now those four Southeastern countries could supply?\nZvi Lando -- Chief Executive Officer\nI think, and again, I'm not necessarily that they have exact data, but naturally, that makes a lot of sense. And there has been some messaging about module companies that are diverting capacity -- module capacity that was intended for the U." ]

[ "Apex, Nevada (CNN) -- Senate Majority Leader Harry Reid said Monday that he is \"very proud\" of having told Barack Obama early on that he believed he was a viable candidate for president and could win election. Responding to the controversy surrounding a newly published remark he made privately about Obama's race in 2008, Reid sought to emphasize his longstanding support for the nation's first African-American president. \"I can still remember the meeting that took place in my office with Sen. Barack Obama, telling him that I think he can be elected president,\" Reid said. Obama \"was kind of surprised that the Democratic leader was calling this new senator over to suggest that he could be elected president,\" he added. A new book quotes Reid, D-Nevada, as saying privately in 2008 that Obama could be successful as a black candidate in part because of his \"light-skinned\" appearance and speaking patterns \"with no Negro dialect, unless he wanted to have one.\" Reid said Monday that numerous prominent African-American officials, including NAACP Chairman Julian Bond and Attorney General Eric Holder, have called him to offer support amid the controversy that began over the weekend. \"I've apologized to everyone with the sound of my voice that I could have used a better choice of words,\" he said after an event announcing a new energy project in his home state. \"And I'll continue doing my work for the African-American community.\" Reid said that \"as a very young man,\" he became a leader of civil rights efforts, including the integration of the gaming community. He added that Interior Secretary Ken Salazar called him to say he should \"tell everybody that you have done more for diversity in the United States Senate than all the rest of the people put together.\" Asked whether he should apologize to voters, Reid -- who had issued a statement over the weekend apologizing \"for offending any and all Americans\" -- did not answer directly and instead cited the support he has received from around the country and within his own state. \"I'm not going to dwell on this any more,\" Reid said. \"It's in the book. I've made all the statements I'm going to make.\" iReport: What do you think about the words Reid used? The book he referred to, \"Game Change,\" went on sale Monday. The authors write that \"Reid was convinced, in fact, that Obama's race would help him more than hurt him in a bid for the Democratic nomination.\" Reid apologized in a statement sent to CNN over the weekend. ", "\"I deeply regret using such a poor choice of words,\" he said. He added, \"I sincerely apologize for offending any and all Americans, especially African-Americans, for my improper comments. I was a proud and enthusiastic supporter of Barack Obama during the campaign and have worked as hard as I can to advance President Obama's legislative agenda.\" Reid called the president Saturday and apologized. In a statement issued after the call, Obama expressed support for Reid, saying, \"As far as I am concerned, the book is closed.\" Speaking to CNN contributor Roland Martin, Obama described Reid as \"a friend of mine. He has been a stalwart champion of voting rights, civil rights.\" \"This is a good man who has always been on the right side of history. For him to have used some inartful language in trying to praise me and for people to try and make hay out of that makes absolutely no sense,\" he said in the interview, which will air this month. \"I guarantee you the average person, white or black, right now is less concerned about what Harry Reid said in a quote in a book a couple of years ago than they are about how we are going to move the country forward, and that's where we need to direct our attention.\" A senior administration official said Monday that Obama will go to Nevada in February" ]

[ "akes, and we'll update folks as we walk through the year.\nTom O'Malley -- Barclays -- Analyst\nThat's helpful. And then, just to check in, you guys have talked about the supply chain, and you're benefiting at the expense of alternatives. Can you talk about the traditional of course crystals suppliers? You've seen some struggle there. Are you seeing any effort to ramp capacity there? Is there any tangible effort there that's having success? Can you just talk about where you're positioned versus that traditional competition and if you think that there's any capacity coming online anytime soon?\nRajesh Vashist -- Chief Executive Officer\nYeah, I do think that there -- I anticipate I don't have any data around it, but I anticipate that there'll be more capacity coming on. I particularly think that in general, with the large expansion of all component capacity in China, in Mainland China, I think they will also be expanding. But to me, I don't know if I think of that as competition because we -- our products are significantly differentiated from those products to really matter. As an example, the XCalibur product the active resonator product is a very, very distinct product.\nIn fact, its own category, as I mentioned. So I don't know how much that impacts us directly, it impacts us in the general way that customers have come to us because of shortages, maybe that gets a little bit slower. On the other hand, I think because of the products that I mentioned that we are coming out with, the pace of new customer acquisition gets higher. So net-net, I think we are in a good place.\nTom O'Malley -- Barclays -- Analyst\nAll right. Thanks again, and congrats, guys.\nRajesh Vashist -- Chief Executive Officer\nGreat. Thanks.\nOperator\nOur next question comes from John Pitzer with Credit Suisse.\nJohn Pitzer -- Credit Suisse -- Analyst\nYeah, good afternoon, guys. Thanks. Let me ask the question. Art, I just want to go back to your comments about increasing cost hitting gross margins starting in the June quarter.\nI mean, TSMC is raising pricing kind of across the board. We're hearing that with many of their customers. But the vast majority of them are just being able to pass those costs along. I'm kind of curious, given that you've exhibited perhaps stronger pricing power than a lot of other chip players in calendar year '21.\n", "Why all of a sudden, this is an issue this year and why you just can't pass those cost increases along?\nArt Chadwick -- Chief Financial Officer\nYeah, so I think, there's a couple of pieces to the answer there. First of all, these wafer cost price increases began at the beginning of the year. And so, we did not have to worry about that last year. I can't speak to 2023 because we don't know what will happen there.\nBut in 2022, wafer prices are going up, and they went up at the beginning of the year. You don't see in our P&L in Q1 because essentially, the finished goods that we are selling in Q1 is coming from wafer as we bought in Q4. So that's why it doesn't impact Q1, but it starts impacting in Q2. And that's a real cost increase, it's solid, it's real.\nSo your question is, why can't we increase pricing? We have increased some pricing. As I mentioned, we can increase pricing even more, but there's that trade-off between increasing pricing to our customers and growth, and we're trying to find the right balance there. And the 2- to 3-point decrease that incorporates some increased pricing. If you look at our wafer cost and other manufacturing costs going up 20-plus percent, that's more than just 2 or 3 points.\nSo the 2 or 3 points is kind of net of price increases that we're anticipating. And that all customers will accept price increases. If you just look at some of our large customers, you can imagine how they would say, we are really not interested in that. So I don't know if that helps answer that, but I tried to add a little flavor to it.\nRajesh Vashist -- Chief Executive Officer\nYeah. And also, I'll add to that, that you said all of a sudden, I don't think this is all of a sudden, we've been saying this all through that t" ]

[ " any -- realizing you don't guide by these specific segments, but I wonder if you have any kind of anecdotal commentary as you look forward to that telecom growth continuing. Do you have any kind of similar thoughts around what you expect out of the silicon photonics as you head into next quarter and throughout the year? Do you expect that to return to growth at some point?\nSeamus Grady -- C\nSilicon photonics, I think a lot of that, I think on the telecom side, we think it's going to remain strong. And also on the datacom side, with several of our customers, one or two of our customers have experienced a little bit of softness in the data centers so that does affect us on the silicon photonics side. But overall, we think -- and again, we only guide a quarter at a time. But overall I think the sentiment out there that we hear is the telecom will be quite strong and datacom is a little bit flat and will continue to be flat, we think.\nTim Savageaux -- Northland Capital Markets -- Analyst\nGreat. Thanks very much. I'll pass it on.\nSeamus Grady -- C\nThank you, Tim.\nOperator\nThank you. Our next question comes from Alex Henderson of Needham. Your line is open.\nAlex Henderson -- Needham and Company -- Analyst\nI was hoping you could give us the geographic split.\nTS Ng -- Chief Financial Officer\nIn terms of shipments, no more changes. North America, shy of 50%. And the rest are split between China, the rest of the world. Southeast Asia is also a big portion.\nWe ship quite a bit to Southeast Asia country.\nAlex Henderson -- Needham and Company -- Analyst\nAnd can you tell me what you said about the growth going forward in telecom again? I'm not sure I got it right in my notes. What was your expectation for telecom growth sequentially into the fourth -- CY 4Q, FY 2Q?\nSeamus Grady -- C\nWell, we haven't guided specific growth for telecom I guess the discussion was really more around overall sentiment. The sentiment we hear from our customers is that telecom will remain, we think, quite strong. Datacom is flat, but we haven't given any specific guidance for our telecom revenue forward. We think we will do in next quarter.\nAlex Henderson -- Needham and Company -- Analyst\n", "I see. And one more question, if I could. Around the Israel operation, when would you expect to be able to actually generate some revenues from that facility? Is that six, nine months out? Or how far out does that take?\nSeamus Grady -- C\nI think we'll be -- we're targeting to be up and running and ready to rock and roll in the early part of next year, so the kind of January to March time frame, so we'll be ready to do business. But it takes a little bit of time then to when the business grows the business, but I think it should be contributing to a certain extent in the, I would say, in the June quarter. We would expect to see some revenue emanating from there in the June quarter, maybe a little bit earlier, but that's what we're thinking right now. So right now, we're fitting out the building and we're kind of fortunate that the building we got has a lot of the infrastructure because it was a semiconductor manufacturing facility originally.\nIt has a lot of the facilities infrastructure already in place. So that shortens the time line for us. And we're planning to install the full suite of equipment, SMT equipment, optical packaging equipment and very importantly for our customers, full failure analysis capability there. So we'll replicate all these on a smaller scale, the same set of capabilities that we have in Bangkok actually.\nAlex Henderson -- Needham and Company -- Analyst\nDo you see that facility as being roughly comparable sized to Fabrinet West?\nSeamus Grady -- C\nIt's a smaller facility. In terms of square footage, it smaller. The Fabrinet West facility, it's a great location, it's a great facility. The building itself is probably a little bit bigger than what we would actually need.\nSo it's a smaller facility. I think terms of square footage, it's about...\nTS Ng -- Chief Financial Officer\n20,000.\nSeamus Grady -- C\nRoughly 20,000 square feet. So it's an ideal size" ]

[ " Officer\nYes.\nPaul Silverstein -- Cowen and Company -- Analyst\nI appreciate that. Beyond Huawei, what are you -- if you had to tier what you're most excited about in terms of driving revenue growth specifically, what would be No. 1 and No. 2 and No.\n3?\nBruce McClelland -- Chief Executive Officer\nWell, the Top 2, our Huawei opportunities. Well, Top 3, Huawei opportunities. The second is the recovery in the Indian market. And then the third is success in North America that we've talked about and the growth that we're targeting here in the North American market.\nThose three things, all focused on the IP optical portfolio are the areas that we believe will drive growth as the year progresses here this year?\nPaul Silverstein -- Cowen and Company -- Analyst\nAll right. I've already asked you about two of the three of those. I just have one question on the -- well, actually a broader question just in North America. And I think I already say you've got a number of opportunities for service providers around the world, Russia, the U.S., etc.\nAgain, trying to get some granular insight, can you characterize -- is that also in the range of 6% to 12%? Is that more than a dozen? Is it less than half a dozen, any rough quantification you can do?\nBruce McClelland -- Chief Executive Officer\nWell, let me come at it a different way. I think the second quarter is going to be fairly significantly stronger in North America for us on IP optical. So we have a number of projects that are in flight already today that we'll recognize revenue on in the second quarter. So I think we'll see some meaningful improvement there.\nAnd as I referred to these Tier 1 opportunities, these are -- again, they're a very focused set of, call them, half a dozen opportunities that are meaningful to the company that we're focused on and believe we have a very good shot at winning some share in them. And hopefully, we'll have more specific detail to share on the next call.\nPaul Silverstein -- Cowen and Company -- Analyst\nI agree. I appreciate it. Thank you.\nBruce McClelland -- Chief Executive Officer\nYeah. Thank you, Paul.\nOperator\nLadies and gentlemen, there are no further questions at this time. I'll turn it back to management for closing remarks. Thank you.\nBruce McClelland -- Chief Executive Officer\n", "Great. Well, thanks again for everyone being on the call and your interest in Ribbon Communications. We really look forward to speaking with many of you at our upcoming virtual investor conferences. and updating you on the progress on our next earnings call.\nWith that, operator, that concludes our call.\nOperator\n[Operator signoff]\nDuration: 35 minutes\nCall participants:\nTom Berry -- Investor Relations\nBruce McClelland -- Chief Executive Officer\nMick Lopez -- Chief Financial Officer\nMike Latimore -- Northland Capital Markets -- Analyst\nDave Kang -- B. Riley FBR Inc.-- Analyst\nPaul Silverstein -- Cowen and Company -- Analyst\nMore RBBN analysis\nAll earnings call transcripts" ]

[ "ey're going to be more expensive due to higher component costs. But at the same time, it looks like you guys have proven that there is a market for low- cost geographies with phones like iPhone SE. So how do you see these two different segments within the smartphone market evolving over the next one to three years? And then I had a follow-up for Luca.\nTim Cook -- Chief Executive Officer\nAgain, I want to stay away from commenting about future products. But generally, I think it's important when you think about 5G is to look around the world at the different deployment schedules. And some of those look very different perhaps than what you might be seeing here. And so, that's very important. In terms of the price, I wouldn't want to comment on the price of handsets that aren't announced.\nKrish Sankar -- Cowen and Company -- Analyst\nGot it. No worries, Tim. And then I have a follow-up to Luca. Opex as a percentage of sales for March looks like about 15% higher than in your prior quarters. Kind of curious how much of that is part of it is driven by some of your Intel modem asset purchases or TV+ in the opex or how do we think about it on a go-forward basis?\nLuca Maestri -- Senior Vice President & Chief Financial Officer\nYeah, I think we felt good about our opex results because they were at the low end of our guidance range, but clearly, we want to make all the necessary investments in the business and from -- in terms of the new services, not only for TV+, but all the new services that we launched during 2019, this is a period where we're making the necessary investments in advertising and marketing and that level of investment is reflected in our opex results. And also as you correctly stated, we completed the acquisition of the Intel baseband business during the December quarter. And so, we had -- we reflected the run rate of the expenses related to that business partially during the quarter after the completion of the transaction. And we -- that is a very important core technology for the Company. So we will continue to make all the necessary investments also there. There is a third category of expenses that affected the December quarter and is the fact that our revenue was very strong. And we have certain variable expenses, for example, credit card fees that are associated with the higher volume and of course, impacted our opex results.\n", "Tejas Gala -- Senior Analyst, Corporate Finance and Investor Relations\nThanks, Krish. Can we have the next question please?\nOperator\nThat will be from Mike Olson with Piper Sandler.\nMike Olson -- Piper Sandler -- Analyst\nAfternoon. Thanks for taking the questions. So slightly different take on an earlier question on Wearables and that is -- what impact do you think Wearables is having on driving people into the Apple ecosystem? You mentioned 75% of watch buyers are new to the Apple Watch, but many of them new to Apple overall. I'm sure a lot of existing iPhone, iPads or Mac users are going to be Wearables customers, but do you think Wearables bring people into the ecosystem to buy other devices in a material way?\nTim Cook -- Chief Executive Officer\nI think that -- Michael, it's Tim. With each Apple product that a customer buys, I think they get tighter into the ecosystem, because they like -- that's the reason that they're buying into it is they like the experience -- the customer experience. And so, from that point of view, I think each of our products can drive another product. I would think in that case, it's more likely that the iPhone comes first. But there is no doubt in my mind that there is some people that came into the ecosystem for the Watch.\nMike Olson -- Piper Sandler -- Analyst\nOkay. And then I think you recently mentioned that augmented reality will pervade our entire lives. And I'm wondering if you could share your thoughts about how you think it starts to impact our lives more significantly? For example, will the inflection point in AR come from gaming or industrial usage or some other category. In other words, where will the average person, kind of, first feel the impact " ]

[ "Stephen Plumlee started feeling dizzy and nauseated shortly after his flight from Sarasota, Florida, landed in Atlanta, Georgia. He was wheeled off the plane by paramedics, but instead of being taken to a hospital emergency room downtown, he was treated in the atrium of the busiest airport in the world. The AeroClinic joins a growing field of easy-access medical facilities found in pharmacies and retail outlets. The AeroClinic, a new retail medical facility, offers quick, inexpensive care to travelers and some of the airport's 55,000 employees. \"We're kind of the stop in between the hospital during your travels,\" said Dr. Dominic Mack, chief medical officer for the clinic. The AeroClinic joins a growing field of easy-access medical facilities found in pharmacies and retail outlets around the country. You could say it falls somewhere between the newer, small clinics and the larger full-service after-hours clinics that have been around for many years. For about $80, a patient can be treated by a doctor or physician assistant for a minor acute illness such as strep throat, upset stomach or headache. That was the reason behind Derrick Gross' visit. The medical sales representative lives in Atlanta, but travels at least three days a week. He says he's too busy to see a regular doctor, and when he saw the sign while passing through the airport, he decided to make an appointment. Gross spent about 20 minutes with physician assistant Sabrina Jackson going through a battery of tests to try to determine the source of his headaches. Health Minute: Airport clinic gives travelers a health-care alternative ». He received a supply of ibuprofen when the tests revealed no obvious medical problems. \"I took a chance by coming here today and I'm satisfied,\" Gross said. He agreed to follow up with his primary care physician. Mack said he treats a lot of patients like Gross. \"You have 250,000 passengers who come through Atlanta Hartsfield every day, and people are sick. What they do is delay their care or they don't get their care at all.\" Dr. David Satcher, former U.S. surgeon general and frequent flier, sees the need first hand. \"I've traveled almost 40,000 miles in the last month and I know there are a lot of people who spend time in airports and a lot of people don't get the care they need,\" he said. ", "As a member of the American Academy of Family Physicians, Satcher believes the concept of a quick-care health facility inside an airport is a good one so long as patients continue to have contact with a primary care physician at home. He serves on the board of directors for The AeroClinic and is one of the privately held company's original investors. He wants potential patients to understand the restrictions of a facility such as The AeroClinic. \"This is not the place to go when you're having chest pains. ... (But) obviously, if you have a minor illness this is an opportunity to seek care while you're traveling and not have to wait until you get back home.\" The clinic's 12 staffers also offer preventive care including physical exams, routine vaccinations and monitoring of chronic diseases. The facility accepts some insurance coverage. In the fall, The AeroClinic, will open a second facility in the Philadelphia, Pennsylvania, airport. The staff plans to offer flu shots at mobile kiosks in the airport concourses. For now, travelers must go out of the airport security zone to reach the facility. Stephen Plumlee didn't mind the inconvenience. \"I was so out of it, I didn't know what was happening. But everyone has been very helpful.\" After he rested for a couple of hours and recovered from the nausea, an imbalance in his inner ear was diagnosed. He was given medication to help him cope with the flight home and sent on his way. \"This has been good,\" concluded Plumlee. \"It's been fine to be able to do it in the airport, not have to go to" ]

[ "or that. That makes sense. And then I think everyone's trying to unpack these new energy markets and understand the value chains over the better.\nSo things like offshore wind, could you maybe just talk about how you perceive differences in those markets compared to your traditional energy markets. Look, in terms of competitive dynamics, contracting terms, pricing, just how would you compare the two in terms of traditional end markets versus these new emerging ones that you're pursuing?\nRod Larson -- President and Chief Executive Officer\nYou know, if you would've asked me that question, probably, three, four years ago, I would have told you that it's a tough market. The pricing is a little bit harder to get. They contract a little harder than some of our oil field customers. I think number one, things have gotten better there.\nI think we're starting to – we're able to establish the value of uptime and new technology and a lot of things. So we're able to place more technology into that market than we have in the past and then establish longer-term relationships. So I think they were alert, and to be fair, they were a little hesitant about -- we will remain interested if there's another pickup in oil and gas. So we built those relationships.\nWe've turned them into something better. And in the meantime, oil and gas has gotten a little more challenging. So I think it's really rebalanced quite a bit. And we would say that those are good projects to have now.\nAlan Curtis -- Senior Vice President and Chief Financial Officer\nYes. And I think, Rod, one of the things I would add is just partnering with them in the development of the SSR vehicles and things of that nature to help them be more efficient in their operations. It's been something we've been very proud of in the last 12 to 18 months and the uptake of that.\nSean Meakim -- J.P. Morgan\nI appreciate that. Thanks.\nOperator\nYour next question comes from the line of Taylor Zurcher from Tudor, Pickering & Holt. Your line is open.\nTaylor Zurcher -- Tudor, Pickering, Holt & Co. -- Analyst\n", "Thanks, guys. Good morning. First question is just with respect to the 2021 guidance obviously a big range at the EBITDA line $160 million to $210 million. And I know we still got a ways to go before we close out 2021, but could you just help us think about kind of the probability of outcomes getting to that higher end of the guidance versus the lower end.\nAnd just really trying to get a sense of how confident you feel and get into the midpoint of that guidance about $185 million of EBITDA next year or this year?\nRod Larson -- President and Chief Executive Officer\nSure. I think we feel pretty good because more of the news that's happened most recently is really putting some confidence out there about a more stabilized commodity price and being in that range and I think more confidence about that range. So I think we feel good about say the midpoint and the upper end of the range that it certainly today, it is looking good. But really, that range is going to be most strongly driven by the stability and the level of the commodity price.\nAs I think about -- I would walk you through sort of the timing of these. If we've got a good near-term commodity price, that's first a lot of the IMR activity that we get those are quick-turn projects. Those barrels are already behind pikes.So if we can help them produce more through their existing wells, they don't need permits for that. Generally speaking, not like a drilling permit.\nSo there's more that we can do there, especially with a riserless intervention campaign. So that can happen fast drive that range up. Then maybe later in the year, we start to see more recontracts get picked up, better utilization of the contracted rigs. So that helps on the upper end of the range.\nAnd then finally, you'll get some FIDs in the door, getting enough confidence over the longer term that we've been stable for a while at a better level. And that's going to drive more in the manufactured products business too. So it's all about that confidence that is by far the biggest " ]

[ "ome of it is connected to just fundamental capabilities, certainly on the climate side, property side, on cyber side. So a lot we're doing that we are very excited about in terms of the ability to help clients address issues critical to them but, heretofore, haven't been addressed in the way they need it to be. So a lot happening from that standpoint. But Eric, anything else you throw in on this?\nEric Andersen -- President\nYes. You just gave a great overview of it, Greg. But if you think about intellectual property and the new skills required there, you think about the new risk areas about renewable energy, about climate modeling capabilities that we need. You mentioned cyber. And certainly in our human capital business, trying to invest in how we do ESG at scale for clients. So there's a whole lot happening on the ground, as Christa said, that is supporting the growth that we're seeing and recognizing that we need to keep investing to make sure we keep growing.\nPhilip Michael Stefano -- Deutsche Bank AG -- Analyst\nYou know what thank you, good luck!\nOperator\nAnd the last question that we have in the queue for today is from Brian Meredith with UBS. Your line is now open.\nBrian Robert Meredith -- UBS Investment Bank -- Analyst\nYes, thanks. Two quick questions here. First one, just curious, Christa, what's the revenue impact of the sale of the retirement exchange? It looks like you're continuing forward with that one.\nChrista Davies -- Executive Vice President & Chief Financial Officer\nYes. So the revenue brand in 2020 for the retiree exchange was $176 million. It is predominantly a Q4 business, as you know well.\nBrian Robert Meredith -- UBS Investment Bank -- Analyst\nGreat. And then second question, I'm just curious, as a part of this process that you're going on with Willis Towers Watson, you'd obviously identified a lot of cost synergies and expense potential savings from the transaction. I'm curious if you were able to identify any -- specifically for Aon,that you could see potentially here going forward to help with cost savings and efficiencies as you went through this process?\nGregory Clarence Case -- Chief Executive Officer & Executive Director\n", "Brian, this is what we were alluding to and talked about before, and I'll come back -- Eric is going to jump in on this. Eric's led this integration in the last 16 months, and this has really been at the one foot level, literally as we engage and connect with colleagues around the world and with clients around the world. And we've seen an uncovered multiple growth opportunities, investment opportunities, expense opportunities, highly approachable to Aon specifically. And all those are going to be baked in as we move forward. This is back to the theme. We came in the March 2020 with exceptional capability strength. And what we've done over the last 16 months around integration is fundamental improvement of our platform. What's going to be the combination combined platform, but it absolutely is applicable to Aon. But Eric, you led this, what do you think?\nEric Andersen -- President\nYes, Greg, I think there's two buckets, right? I think on the revenue synergies, you're talking about the client value-creation model that we've been working on, otherwise are delivering in Aon United strategy about how do you bring the firm together. We're talking about how we're perfecting it. That was done in the context of the integration management planning. But also on the expense side, certainly real estate strategy, technology strategy, all the areas that you would think, having a fresh look with teams that were built specifically to try and challenge the status quo and really pressure test how can we do it better, how can we do it more efficiently? How do we leverage our Aon Business Services model in a way that we had really started during pre-Willis Towers Watson combination to really accelerate how we actually use that capability. I wouldn't necessarily call that last one new. I would just call it expanding what we've been building and really getting it embedded across the firm across th" ]

[ " to enable sustainable, flexible film packaging with recycled content. Our actions to advance plastic circularity are value-accretive to Dow. And our differentiated product slate, downstream knowledge, intimacy with consumer brands and strategic partnerships give us a leading-edge to capture this growth.\nTurning to Slide 9. As Howard mentioned, Dow remains well-positioned to benefit from improving industry and market conditions. We see several positive leading indicators, including momentum and job growth, consumer spending, a return to air travel and expanding manufacturing and industrial activity for global manufacturing PMIs at a 15-year high in March. These trends are further supported by government stimulus measures and accelerating vaccine rollouts globally.\nThe spending elements of the U.S. infrastructure plan, if passed, will further support growth in our downstream markets. Similarly, incentives aligned to more sustainable energy solutions should be beneficial to our business and to attaining our own sustainability targets. These programs are not currently included in our assumptions, but could drive additional growth if enacted in a manner that supports manufacturing competitiveness.\nThese macro trends translate into a one to two times GDP growth across key end markets, including packaging, infrastructure, mobility, consumer durables and industrials and home and personal care. Given this backdrop, we see demand in our key value chains continuing to outpace supply throughout 2021 and staying balanced in the near-term across ethylene, polyethylene, polyurethanes, acrylics and silicones chains. Some industry views call for softening conditions in the near term, largely based on their view of planned capacity additions. However, these views do not account for industry project delays or cancellations nor do they account for the maintenance activity or reliability impact from weather-related events like the winter storm.\n", "Industry delays and cancellations of planned capacity additions, along with elevated demand growth as the global economy continues to reopen will likely lead to tighter than predicted market conditions, all of which will result in continued earnings, margin and cash flow growth for our core businesses and joint ventures in the near term. And while we capture these improved earnings over the next several years in our core businesses, our current slate of lower capital, faster payback and higher return capacity expansions will add nearly $1 billion of accretive earnings to our bottom line. Dow's points of distinction continue to raise our earnings and cash flow potential relative to peers. The market growth we expect in our business, combined with our industry-leading feedstock flexibility, global scale and advantaged cost positions, our top quartile cash generation and our innovation and leadership in high-growth end markets enable Dow to continue to deliver value for our owners through 2021 and over the foreseeable future.\nWith that, I'll turn it back to Pankaj to open the Q&A.\nPankaj Gupta -- Director, Investor Relations\nThank you, Jim. Now let's move on to your questions. I would like to remind you that our forward-looking statements apply to both our prepared remarks and the following Q&A. Operator, please provide the Q&A instructions.\nQuestions & Answers:\nOperator\n[Operator instructions] And we'll move to our first question from David Begleiter with Deutsche Bank.\nDavid Begleiter -- Deutsche Bank -- Analyst\nThank you. Good morning. Jim and Howard, in plastics, how are you thinking about sequential earnings improvement here? Given the price margin growth we are seeing, can you get to $2 billion of EBITDA in Q2? Is that possible?\nJim Fitterling -- Chairman and Chief Executive Chairman\nGood morning, David. As you noted, obviously, we continue to see strong demand growth in plastics. And if you look at our sales, we're looking at 3% to 7% higher sales in the quarter. And obviously, operating rates should be much improved given that we won't have the impact of Winter Storm Uri.\nWe do have some turnaro" ]

[ "Turn back time, more than 90 years, to a cold case that won't gather dust. It's a classic whodunit, starting with the rape and murder of a 13-year-old girl and ending in a lynching. It was grist for a prosecutor's political aspirations, a case that was appealed all the way to the country's highest court and a story hotly debated in the national press. At the center of it all was Leo Frank, a northern Jew who'd moved to Atlanta to supervise the National Pencil Company factory. When the body of Mary Phagan, a white child laborer, was found in the basement, law enforcement homed in on Frank. He was tried and convicted, based on what most historians say was the perjured testimony of a black man, and sentenced to death. But when the governor commuted his sentence in 1915, about 25 men abducted Frank, 31, from the state prison and hung him from a tree in Marietta, Georgia. Considered one of the most sensational trials of the early 20th century, the Frank case seemed to press every hot-button issue of the time: North vs. South, black vs. white, Jew vs. Christian, industrial vs. agrarian. In the years since, it has inspired numerous books and films, TV programs, plays, musicals and songs. It has fueled legal discussions, spawned a traveling exhibition and driven public forums. Who murdered Mary Phagan? What forces were behind the lynching of Frank? Why should we still care? Answers to these questions, or theories, keep coming. \"Leo Frank was not a good ole Southern boy. He was different and not ashamed of being different,\" said Ben Loeterman, whose new documentary, \"The People v. Leo Frank,\" will air Monday on PBS. \"The test of us as a society is not necessarily how we treat the best among us but how we treat the most questionable.\" Mixed in with ongoing analysis of the Phagan-Frank story are the descendants of those involved, people who learned of their connections differently and carry these legacies forward in unique ways. The accused \"The story goes that no one in my family talked about it,\" said Cathee Smithline, a 62-year-old great-niece of Frank. Frank was the one who handed Mary Phagan her check when she stopped by the factory on April 26, 1913, Confederate Memorial Day. ", "The night watchman, Newt Lee, would find the body and call police early the next day. Smithline, of Wyckoff, New Jersey, was 16 when she first heard about the case. Her mother sat her down, told her a story about what a man in the South had been through, said it was based on her uncle and handed over a book: \"A Little Girl is Dead.\" It turns out Smithline's mother got the news in her teens, too, when her boyfriend turned to her after seeing \"They Won't Forget,\" a 1937 Hollywood film. \"You know that's about your uncle,\" he said. She'd grown up hearing Uncle Leo died of pneumonia, and after asking family about it, the truth was revealed, followed by the words, \"We will never talk about this again,\" Smithline said. \"I think it was a family embarrassment,\" she said. \"My grandmother [who died when Smithline was 1] was very close to her brother. It cannot be easy to tell someone your brother was lynched and why.\" The first victim Mary Phagan Kean was 13 when the story hit her. She was in a South Carolina classroom, and her name stopped short a teacher taking attendance. \"Mary Phagan, you say?\" she recalled the teacher asking, peering up from his list. He wanted to know if she was related to a girl with that name who died in 1913. Confidently, she told him she wasn't. But the boys on the playground taunted her anyway, telling her she was reincarnated from a dead girl" ]

[ "on to ease. I think indications are that it's improving, but obviously, that's going to be a process because with the congestion at the ports coming in and out, even if -- as things begin to relax, it's going to take some time for stuff to flow through freely. On a more strategic level, when we look at the ramp in our business and especially project into 2023, we are already talking of volumes of components that require call it, attention and real high-volume, long-term agreements with some of the component suppliers. And that's something that we've been active in the last three months is really going between them meeting -- sharing our forecasts, aligning with many of them that are placing renewable energy higher on their priority list and making sure that as part of their expansion plans for the next 12 to 24 months, they're building in the type of capacity that we expect to need looking at the momentum of our business.\nAnd this is across the board. It's transistors. It's IGBTs. It's ASICs from the foundries.\nWith each one of these key suppliers, we are aligning the midterm forecast and building the relationship to ensure the supply that we need. So the short term, we hope that challenges ease in Shanghai, in particular, and in Asia, in general, the flow will resume, and it will make our next couple of quarters or especially from Q3, a bit easier. Looking into 2023, it's really already about increasing significantly the capacity at some of our suppliers and a more strategic relationships with some of these key component manufacturers.\nMark Strouse -- J.P. Morgan -- Analyst\nOK, very helpful. Thank you.\nOperator\nWe'll take our next question from Laura Sanchez with Morgan Stanley. Please go ahead.\nLaura Sanchez -- Morgan Stanley -- Analyst\nHi. Thank you so much. Thank you for taking my question. I think if I can go back to the DOC investigation.\nI'm wondering, do you think installers have sufficient inventories to supply demand for the rest of the year or is it that installers can pass the higher cost to customers in case they start importing from China?\nZvi Lando -- Chief Executive Officer\n", "So I think it's probably a little bit of both. And obviously, it starts with the distributors. And I believe, in particular for residential, the distributors probably have some level of inventory and the distributors and installers still have some room to modify pricing without impacting demand. At a certain point, at a certain point, obviously, that's -- the increase in pricing is going to begin to impact to impact the demand.\nSo I think the duration of this unstable environment is going to be critical to understand if it's a -- if it's a bump, that's just because the whole industry is driving so fast, we are going to pass over without a major impact or if it's a longer and higher bump, it will begin to have some impact toward the end of the year and beginning of next year starting from utility, obviously, which is already impacted, then shifting over to C&I and maybe eventually reaching residential. But probably, it will take longer for that to happen. And hopefully, this whole crisis will be resolved fast enough not to see this type of dynamic.\nLaura Sanchez -- Morgan Stanley -- Analyst\nUnderstood. And as a follow-up, do you think, let's say, like the supply in those four southeastern countries. Do you think it's possible that they can start supplying the strong demand in Europe, in which case, as you highlighted before, a lot of your revenues, I think over 50%, comes from Europe. So I'm trying to think or see if there could be -- if we see an impact in the U.S.\nfrom the DOC investigation, if that could be potentially offset by stronger demand in Europe, especially if there is a manufacturing constraint that now those four Southeastern countries could supply?\nZvi Lando -- Chief Executive Officer\nI think, and again, I'm not necessarily that they have exact data, but naturally, that makes a lot of sense. And there has been some messaging about module companies that are diverting capacity -- module capacity that was intended for the U." ]

[ "Shortly after midnight on January 24, a 16-year old boy from Powder Springs, Georgia, crashed his car into an oncoming vehicle. Garrett Reed, a star football player at Harrison High School, died instantly. Police believe he had been drinking. Kecia Evangela Whitfield, 43, is charged with furnishing alcohol to a minor and reckless conduct. According to police, the investigation revealed that a classmate's mother served alcohol to Reed. Police charged 43-year-old Kecia Evangela Whitfield with furnishing alcohol to a minor and reckless conduct, both misdemeanors. Whitfield was released on a $10,000 bond and awaits a court date in April. Records on file with the Cobb County solicitor general's office indictate she has not yet entered a plea or obtained a lawyer. She did not return CNN's phone calls. If convicted, she could receive up to a year in jail and fines totaling thousands of dollars. Toxicology reports for Reed will be released in six weeks, officials said. His death stunned the small community of Powder Springs and sounded an alarm for parents. \"What we have to realize is that our kids do think they are invincible,\" said Patti Agatston, a mother of another Harrison High School teenager who lives in Reed's neighborhood. \"We can't be enablers. We've got to be adults and say 'no.' \" At least ten states including Virginia, Minnesota and New Mexico-and Georgia, where Garrett's accident occurred, allow parents to give their own child alcohol, according to the Alcohol Policy Information System, a federal website that tracks alcohol laws. The alcohol can typically be given to the minor in the guardian's home or a private setting and there are no age limits, according to the National Conference of State Legislatures. However, nowhere is it legal to give alcohol to other people's children. Officials say teen binge drinking is reaching epidemic proportions, and states and municipalities are scrambling to implement \"social hosting\" laws that carry stiff fines for parents whose homes are used for drinking parties, whether they know about them or not. At least 24 states have enacted social hosting laws that fine parents several thousand dollars for each offense, said Jim Mosher, an expert tracking alcohol policies at the National Conference of State Legislatures. The fines, he said, are an effective deterrent. A 2005 study conducted by the American Medical Association reported that about one-third of teens said it was \"easy to obtain alcohol\" from their parents. ", "That figure jumps to 40 percent when it comes to getting alcohol from a friend's parent. One out of four teens said they had attended a party where minors were drinking in front of parents. Some communities are using their zoning powers to create local social hosting laws. These laws usually result in misdemeanor charges and jail time is rare. Prosecutors' offices are often busy with other cases and don't bother to charge unless there is a serious incident or accident, policy experts said. \"It's very difficult for us to knock on a random door and say 'are you drinking?' \" said Sgt. Dana Pierce of the Cobb County Police Department, the agency responsible for investigating Reed's case. \"We usually have to respond to some kind of nuisance call.\" In Massachusetts in January, a court sentenced a mother to jail for serving alcohol to minors at a party in her home. A teenage boy died in an auto accident after leaving her party. In Charlottesville, Virginia, two adults served jail time in 2007 for providing alcohol at their son's 16th birthday party. Some parents consider giving a teenager a drink a rite of passage -- and that contributes to high teenage drinking rates, said Richard Yoast, director of the Department of Healthy Lifestyles and Primary Prevention at the American Medical Association. \"It's a myth that adults and children are buying into, and it creates pressure on the child to drink,\" Yoast said. \"The biggest problem to overcome is the fact that parents feel like they are helping their kids,\" said Denise Thames," ]

[ "we appear on this IoT user's mobile app.\nAnd then we will appear on the smart devices. Think about the user case, when you wake up in the morning, go to the kitchen and start preparing your breakfast. When you are cooking, the big screen on your refrigerator will start showing your favorite short videos. So isn't this going to be -- going to make your cooking more fun? All this is possible is because it is powered by JG VaaS.\nSo we think this is what's going to happen in the future, and we think it's really exciting. I think the adoption across multiple industries are going to happen not overnight, but we do see the trend. Actually, the demand is there.\nBrian Kinstlinger -- Alliance Global Partners -- Analyst\nSo in the short term, there'll be a very small contributor to revenue. But as we look to maybe the second half of 2022, does it become a catalyst to revenue growth? Or is that even too soon?\nWeidong Luo -- Chairman and Chief Executive Officer\nThat's what we are aiming to. Yeah, you are correct. In the short term, the revenue contribution is still relatively small, given our -- the large base of our traditional products, the push services and the other related SDK tools, right? But for next year, actually, we aim to have the sales force and to have -- to drive strongly to promote to sell this product. So certainly, that will be our key focus for next year for this VaaS product,  as well as the UMS product, these two new products.\nBrian Kinstlinger -- Alliance Global Partners -- Analyst\nOK. Thank you.\nOperator\nThank you. We have our next question from the line of Ryan Roberts of Navis Capital. Please go ahead. Your line is open.\nRyan Roberts -- Navis Capital -- Analyst\nHi. Good evening, guys. Can you hear me?\nWeidong Luo -- Chairman and Chief Executive Officer\nYes, Ryan.\nRyan Roberts -- Navis Capital -- Analyst\nGreat. So my question is really kind of more on the, I guess, the financial performance. So first question kind of on gross margin for SaaS, I know it moves around a little bit from kind of from quarter to quarter. It looks like it's softened a little in this quarter.\nAnd so, I was kind of curious if you can give us some color on why that might have been? And I've got a question about kind of the outlook after that?\n", "Weidong Luo -- Chairman and Chief Executive Officer\nYes. I guess, the margins did not move as much as what we have expected, it did drop a bit, but I guess there's a more functionality on some of the apps that we brought in for the JG Alliance we, yes, we managed to get more than some of the share of revenue. So in that case, we are giving them some of the benefits of our gross margin. So we do not expect that to be a continuous trend.\nSo we expect the margin to be above 17% nevertheless. So as far as the margin is concerned, we don't see that as a meaningful dip.\nFei Chen -- President\nYeah. So we aim to keep our gross margin above 17% at least that's our near-term target.\nRyan Roberts -- Navis Capital -- Analyst\nGot you. Got you. OK. And then that sounds kind of like, I guess, a base case.\nI think in the past several quarters, it's been certainly well above that. So that's, I guess, how I'm looking at that. And really kind of -- as we sit here now in November, looking into, I guess, really, actually, we're almost in December here, how are we thinking about next year? Because it sounds like you have JG Alliance devices coming back into the pool, the previous analyst asked about sign-ups and kind of you mentioned that you're back on to a normalized pace, which I've realized there are vagaries there with what developers want to do or not. But how are we thinking about the year ahead? And maybe on JG Alliance, can you update us on kind of the overall ad load as you go into the end of the year and also eCPM.\nHow are those metrics kind of shaping up?\nWeidong Luo -- Chairman and Chief Executive Officer\nYeah. So Ryan, so actually our teams, different business units currently are still undertaking the process to finalize the next year's budget, right? So we usually have used two approach, bottom up and a to" ]

[ " the June quarter is a trough from a margin perspective. And really, as you look forward from here, for us, the most important thing is the revenue scale. And hence, the things we highlighted in my prepared remarks both from an IoT growth perspective just gives us scale that allows us to expand operating margins. And then finally, the Huawei SAM, as we start approaching that SAM and really leveraging the existing products and road map both across handsets and RF front end and growing into that SAM, we already have the product portfolio to go there.\nSo as we grow there as well, it will be accretive to operating margins. So pretty happy with where we are at and looking forward to improving it going forward.\nMatt Ramsay -- Cowen and Company -- Analyst\nGot it. Thanks for that. As my follow-up, for Cristiano, you guys were kind enough to share a slide tonight that highlighted the diversity of the RF footprint across, I think, I don't know, a dozen or so premium Android devices both from global OEMs and in China. The question that I still get from investors is your confidence and ability to sustain or maybe expand that footprint as we go into next-generation devices maybe as some of the RF competitors have a bit more mature 5G stances in their portfolio.\nSo do you have any visibility as to how the -- with those OEMs, the footprint might continue as you go forward and be sustainable in the RF franchise? That would be really helpful. Thanks, guys.\nCristiano Amon -- President and Chief Executive Officer\nLook, Matt, thanks for the question. It's a great question. And I want to start by maybe providing some data points and make -- emphasize some of the data we provide in the earnings script. We've heard a lot in the past that our RF front end business, a lot of people for the most of it was because of our leadership position in millimeter wave, which we do have a leadership position in millimeter wave.\nBut the reality is millimeter wave represent less than 20% of the revenues that we're showing in RF front end. The absolute majority of it is sub-6 and 4G actually, which actually shows that we're winning not only at the system level, we're winning at the component level. Otherwise, we will not come in as the fifth supplier and be winning 4G sockets. And that is kind of really highlighting what we said.\n", "At the end of the day, you're going to have every single spectrum, whether it's existing spectrum through DSS that goes to 5G, plus the new mid-bands and the millimeter wave bands. We feel pretty good about our road map of RF front end. The fact we're winning designs across the board, it's a testimony that our strategy is working. And to your specific question about is this going to go away, we're now probably -- if you look at the beginning when we launched 5G in 2019, in early 2019, we're now multiple product generations and we continue to win RF front end.\nSo we're very confident about this business. It is a great growth story for Qualcomm. And the beauty of this, we're actually winning on technology.\nOperator\nThank you. Our next question comes from Samik Chatterjee with J.P. Morgan. Please proceed with your question.\nJoe Cardoso -- J.P. Morgan -- Analyst\nHi. This is Joe Cardoso on for Samik. My first question is on competitors. One of them commented pretty bullishly about targeting flagship millimeter-wave SoC opportunities next year.\nSo just curious to hear [Technical difficulties] on competitive landscape and market share dynamics going forward and whether you expect a return of more aggressive pricing in the industry?\nCristiano Amon -- President and Chief Executive Officer\nLook, there's a lot of good things in this data point. I think this data point, when our competitors are targeting millimeter wave in China, it just validates that China is going to have millimeter wave. And that's how we read it. That's a great data point, consistent to what we've been saying.\nIt's going to add a lot of scale to millimeter wave. Look, Qualcomm has been very focused in our strong position in premium and high tier. There's an incredible opport" ]

[ "27% year-over-year to more than 1.3 billion units, with a record 750 million units from our base station and IoT customers.\nIn perspective, 2020 was a landmark year for both CEVA and its industries. The global pandemic highlighted the impact connectivity has on our lives and acted as a catalyst for rapid change toward digital transformation. This presents a unique set of opportunities for CEVA differentiated technologies and operational agility, in particular in four key markets: 5G RAN, Wi-Fi, TWS earbuds and automotive.\nLet me take the next few minutes to elaborate on these growth drivers and the anchors CEVA has already in place in these lucrative markets. 5G RAN. 5G offers data rates and ubiquitous connectivity. The fast rollout of 5G networks to-date is predominantly aimed at smartphone use cases. According to Ericsson's most recent Mobility Report, by the end of 2020, over $1 billion or 15% of the world's population live in a 5G coverage area. China in particular is very advanced with 70% of the global 5G connections according to the GSM Association. Beyond smartphones, 5G offers new growth opportunities in regards to URLLC and IoT applications. These applications will be at the center of next-generation technology deployments in industrial, robotics, AR and autonomous cars.\nThe digital transformation, and the new applications 5G enables, present sizable opportunities for CEVA's 5G RAN technologies beyond our existing incumbency in baseband. This specifically applies to the growing use of Active Antennas, a new antenna technology that combines arrays of antennas with DSP to process complex algorithms such as massive MIMO and beamforming for more precise steering of the antenna signal which gains a substantial boost in capacity and energy efficiencies. The emergence of O-RAN and vRAN which aims to transform the telecom industry from relying on proprietary platforms from a limited number of OEM to a disaggregate network with open interfaces and a multitude of merchant chips from incumbent and new suppliers. Rethink Research is expecting Open RAN to account for 58% of the overall RAN capex spending by 2026.\n", "With our second-to-none competitive edge in DSP processors, we are able to empower our existing and upcoming customers to innovate and quickly expand their market reach to the remote radio units and address new opportunities in the RAN space like private networks, small cells, Fixed Wireless Access and O-RAN. We are encouraged by the progress ZTE has made in the 5G RAN space, growing its share in the global RAN market from 8% to 11% on a year-over-year basis, according to Dell'Oro, and we expect other customers of ours to go into production in 2021.\nWi-Fi, Wi-Fi is deployed in over 5 billion smartphones and more than 300 million hotspots today. Cisco estimates that more than 50% of the global mobile data traffic is offloaded to Wi-Fi, and this is set to grow to over 70%. AT&T noted that its network experienced 90% Wi-Fi data growth during the pandemic. The new Wi-Fi standards, Wi-Fi 6 and 6E, provide substantially higher data rates of up to 9.6 giga bit per second versus 1.3 giga bit per second in the prior generation, Wi-Fi 5. Wi-Fi 6 also presents sizable opportunities beyond smartphones and PCs, through the proliferation of connected IoT devices such as smart home appliances, smart TVs, smart speakers, connected cars and wearables.\nOur RivieraWaves Wi-Fi 6 IP is at the forefront of the Wi-Fi 6 upgrade cycle and the only IP with successive record of accomplishment. We have signed to date more than 10 Wi-Fi 6 customers, and our existing Wi-Fi 4 and Wi-Fi 5 customer shipments grew more than six-fold in 2020, the start of a significant expected ramp up. In addition, as I noted earlier, Wi-Fi 6 along with our Bluetooth technologies bring us opportunities to penetrate the high volume market of smartphones as more OEMs are looking to internalize wireless connectivity technologies, as well as semis that look to take advantage of our leadership in the Wi-Fi 6 and Bluetooth domains.\nTWS earbuds, The TWS earbuds market pre" ]

[ "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" ]

[ "t say, we are so well-positioned on the edge and the 5G.\nThe open RAN, VRAN initiatives in the industry are now hitting stride. And I think I've only been on three major service provider calls this week on exactly that topic, right, where they're really starting to look at those deployments at scale for a standardized software-driven edge environment for their 5G networks. And I'd also say this is a victory for innovation. Just a year ago, we were very -- just three years ago, there was grave geopolitical concerns around 5G and would there ever be flexibility for how that would get deployed nationally.\nNow everybody is aligning against the ORAN, VRAN initiatives as the way to do their 5G broad deployments. And the Intel platform sits in the center of those almost everywhere in the world. It really is a great success story for us and one that we think that we'll be harvesting for many, many years to come. \nHarlan Sur -- J.P. Morgan -- Analyst\nThank you.\nOperator\nThank you. Our next question comes from the line of Toshiya Hari from Goldman Sachs. Your question, please.\nToshiya Hari -- Goldman Sachs -- Analyst\nGood afternoon. Thanks so much for taking the question. I had a multi-part question on gross margin. George, you talked about PRQ reserves related to Alder Lake being a headwind this quarter.\nIf you can quantify that for us, ballpark, that would be super helpful. And then, toward the end of your remarks, in terms of the second half outlook, in terms of gross margin, you talked about supply tightness driving a deterioration in CCG mix. I was a little surprised to hear that given how strong Chromebooks were in the first half. So if you can elaborate on that that would be super helpful as well.\nThank you.\nGeorge Davis -- Chief Financial Officer\nYeah, so in terms of -- if we're looking at the -- particularly, let's look at Q3 because that's where we discussed the Alder Lake pre-PRQ reserves. It's one of the two top movers. When you look at being down 400 basis points, certainly, it's not the majority, but it's a meaningful impact in the quarter. Seven-nanometer start-up costs ramping is the biggest impact far and away.\n", "In terms of supply tightness, the challenge is -- part of what made Q2 so great was customers really challenged our sales teams and our factories to remix within a quarter to provide them with the components that they could then match with what their supply chain was providing them so they could get to market. And this was -- watching it was super impressive, a little bit scary at times. But the team did a fantastic job. So we did a really good job of eating up a lot of our substrates, some of which we thought we would have available to us in Q3.\nSo the supply impact is more of a volume impact. Customers are already starting to mix upwards. So that's usually a positive for gross margin. And if there's upside in the second half, it will come from both higher substrates and the ability and a higher mix.\nAnd that could well be the case. We were cautious. Q3, we could see we had a real supply challenge. I mean, it's acute.\nBut Q4, we are doing everything we can to help our substrate suppliers increase supply, including finishing up some of their manufacturing in our own facilities, which is something we could do as an IDM. If we have more success than we can forecast today, maybe Q4 could be seen as conservative. \nToshiya Hari -- Goldman Sachs -- Analyst\nThank you.\nOperator\nThank you. Our next question comes from the line of Srini Pajjuri from SMBC Nikko. Your question, please.\nSrini Pajjuri -- SMBC Nikko SecuritiesAnalyst\nThank you. Just to follow up to the previous question, George. Could you give us some idea as we head into the next year, what are some of the puts and takes on the gross margin front? I'm just curious as to how long the seven-nanometer cost will persist and when do they peak out. And as we go into first half of next year, how should we think about the gross margins?\nGeorge Davis -- Chief Financial Officer\nYeah, so again, I'm going to defer any kind of forecasting of '22 and beyond. But as yo" ]

[ "ancial Officer\nThank you, Natalie. I'll address the first question and then Xueling David will address the second one. So in terms of the Likee MAU, you are right, we achieved over 100 million MAUs. In the top five countries, those as we said before, it's -- are India, Indonesia, Russia and some of the other developed and emerging markets. And you asked about the penetration rate. What I can tell you, if we look at the industry landscape or the short-form video market in global markets, except China are very -- I'd say, relatively low penetrated. My take would be less than 10% penetration in terms of mobile Internet users. So from that perspective, we are seeing massive opportunities and potential across all those emerging market developed world. As David mentioned in the last question that we truly believe short-form video is just starting to take-off globally. So we are very excited in terms of the penetration of future market potential.\nDavid Xueling Li -- Chairman of the Board and Chief Executive Officer\n[Foreign Speech]\nThis is David. Let me address your second question. So, we truly believe in the next year or even the longer period, our key focus as well as major energy allocation will be into the short-form video arena. Because based on our understandings, definitely the short-form videos will be further improve our comprehensive capabilities for the whole companies. That's also the major reason why we took the short-form video as one of the key strategies for the corporation.\nIf we look at the international development in terms of short-form video content, which we believe it will be in the future, it will be similar as China, which means every person will be use of the short-form video apps. So our ultimate penetration rate for the short-form videos will be very similar as the social media or even social network products. And this trend actually already happened in China. But we -- I'm afraid, actually for the rest of the world, probably still a lot of people still catching that in terms of the future of the short-form videos. So based on our understandings, which we believe this is a historic opportunities for the Company.\n", "So in the next one or two years, so we will continue to develop our short-form video apps in order to catch those massive market opportunities. That's the first part. And second part, after we have a development of the short-form video content as well as, it also will back train of our AI capabilities and train our teams, because as I mentioned previously, the AI technology actually has been -- the short-form video actually has been used most of the AI capabilities in the market.\nAnd if we look at the nature of the short-form video, it's -- actually, already quite similar as a reality world. The only difference will be a camera, right? So understanding about the short-form videos will also represent understanding of the reality world through of the AI capabilities. So once we have the industry-leading of the AI technology -- capability has been established, is that actually give us more opportunities to grab of the future opportunities within of the sector. So that's a major reason why we will keep on -- keep most our energy focused on the short-form video development in the future. Thank you.\nOperator\n[Foreign Speech]\nOur next question comes from Lei Zhang from Bank of America. Please go ahead.\nLei Zhang -- Bank of America -- Analyst\n[Foreign Speech]\nThanks management for taking my questions. Congrats on the strong results. The first question is on the overseas competition, maybe with TikTok, our launch year management's updated view on the competitive dynamics and your recent user channel in lieu [Phonetic] of the acquisition and last year short-form videos spending overseas? And second question about Likee's or short-videos record lower rates. You can see there what has happened, though, with TikTok. Thank you.\nDavid Xueling Li -- Chairman of the Board and Chief Executive Officer\n[Foreign Speech]\nThis is David. Let me address your question. So in terms of the short-form video competition," ]

[ "out the development prospects in distributed generation market, and we continue to grow our brand influence in this market.\nWith the strategic needs for energy transformation and energy security in major world economies, we expect that PV industry to continue its strong growth momentum in the coming years. Advanced and high efficient on-time products will support the continued growth of the global PV industry.\nLi Xiande\n[Foreign language]\nStella Wang -- Investor Relations\nWe continue to lead the industry with our innovative technology and in-depth market knowledge. In our Haining facility, our mass-produced N-type cell reached an ultra-high conversion efficiency of up to 24.5% in the fourth quarter last year, an energy yield similar to that of PERC. We have roughly 16 gigawatts of on-time cell capacity operational in the first quarter of 2022 and currently are steadily ramping up our production capacity. Our integrated cost is expected to further decrease as our integrated production capacity structure consistently improved. \nLi Xiande\n[Foreign language]\nStella Wang -- Investor Relations\nIn light of the rapid industry transition from P-type to N-type and growing demand for higher efficiency products, we have launched the next generation of N-type ultra-efficiency Tiger Neo modules. These models have received a worldwide claim from our customers for better power generation performance and obtained premium. In the long run, our stable supply and localized after-sales service network will continue to guarantee the reliability and the consistency of our products and services. These core qualities have become our competitive mode.\nWe will reinforce the leadership position of our N-type modules globally and further enhance our global market share and profitability. \nLi Xiande\n[Foreign language]\nStella Wang -- Investor Relations\nOur seven-gigawatt mono wafer plant in Vietnam become officially operational in the first quarter this year. This integrated mono wafer cell module manufacturing capacity of roughly seven gigawatts overseas further consolidates our global supply chain advantage. We are coordinating with our upstream and downstream partners to tap into all other complementary resources and enhance our strategic cooperation. This will help us mitigate raw material shortages and production weak links.\nAt the same time, we are committed to building a cluster of industrial ecosystems to solidify our supply chain. Vertical integration is essential to compete in the global PV market. By continuously consolidating our diversified industrial chain infrastructure, we believe we will continue to strengthen the competitiveness of our core products and bringing great value to our global customers with high-quality, reliable modules and premium services.\nLi Xiande\n[Foreign language]\n", "Stella Wang -- Investor Relations\nBefore I turn it over to Gener, I would like to go over our guidance for the first quarter and full year 2022. We expect total shipments to be in the range of 7.5 to eight gigawatts for the first quarter of 2022. The annual mono wafer, solar cell, and solar module production capacity is expected to reach 50, 40, and 60 gigawatts, respectively, by the end of 2022. We expect our full year 2022 shipments, including wafer sales and modules, to be in the range of 35 to 40 gigawatts.\nGener Miao -- Chief Marketing Officer, JinkoSolar Holding Company Limited\nThank You, Ms. Li. Total shipments in the fourth quarter were 9.7 gigawatts, of which module shipments were nine gigawatts, a significant increase compared with the third quarter of 2021 and the same period of 2020. ASP outside the North America improved sequentially, thanks to the sales of high-efficiency products in high-end market.\nIn terms of regions, module shipments in Asia Pacific and emerging markets increased sequentially and year over year. China outpaced all other countries by contributing the largest portion in the fourth quarter from less than 10% in the first half of the year to nearly 34%. As distributed generation gradually becomes the main driving force for n" ]

[ "dry -- leading foundry, we've seen a tremendous ramp of that new optical wafer inspection system. And it really gives the customers tremendous performance at a much better cost of ownership so they can insert inspection points in more places in the line, and that has a big impact on the speed of the yield ramp. So that's really in the early phase of adoption, the new optical wafer inspection system. Our e-beam products are tremendously strong.\nIf you look at a 2021, our e-beam growth would exceed every prior year for PDC total systems business other than 2020. So that business is very strong. We have leadership in electron optics. We've introduced a new source technology that gives us much higher resolution, much faster imaging in one segment of the EB market.\nWe will take that core technology in electron optics across all of our different platforms, and it creates just a tremendous opportunity for us to continue to extend our leadership in the e-beam part of the market. So that's growing very fast. And the third thing I would say that's really important, when you think about power performance area and cost, what's really important to our customers is how fast they can drive all of those different key metrics. So accelerating, certainly for us and for them, we talk about PPACt, is enormously important.\nAnd there are cases with the -- especially our e-beam products where you can generate orders of magnitude more data in a much faster period of time. So when you're thinking about optimizing the new materials, the new structures with unique imaging and algorithms to accelerate both our internal R&D at Applied and also the PPAC road map for our customers, that synergy is increasing from an overall company perspective. So again, I think the optical inspection, we're in the early phase of the adoption. E-beam, leadership in imaging.\nWe'll extend that leadership with new capabilities. And the synergies with our overall business has never been better and never been more important for us and for our customers.\nOperator\nThank you. Our next question comes from the line of Harlan Sur with J.P. Morgan. Your line is now open.\nHarlan Sur -- J.P. Morgan -- Analyst\n", "Good afternoon, and great job on the quarterly execution. The chip shortages in the industry are across leading-edge and lagging-edge technologies, probably more so on lagging edge, just to support analog, mixed signal, microcontroller products that feed into the auto and industrial markets. And I think these customers are scrambling to add capacity. What's order activity been like for lagging-edge tools? And it looks like lagging edge and IoT contributed about 25% of your systems business last year.\nDo you guys expect that mix to grow this year? And how do operating margins for these tools compare to the overall systems segment?\nDan Durn -- Chief Financial Officer\nYeah. Thanks, Harlan, let me just pull up some statistics on the split. So trailing node versus leading edge this year, we kind of see -- if it was maybe -- yeah, probably a follow-through on 70-30 again this year: 70% leading edge, 30% trailing node geometries. As we go back in time, we've been talking about this a fair amount here over the last couple of years.\nSo strength on the trailing-node geometries is -- has not been new. In fact, if we go back 2010 to 2020, take that 10-year window, if the foundry business over that time, in aggregate, grew just about 90% a little bit less, the trailing-node geometries have been above the foundry segment average at about just over 110% growth. Leading edge has grown at about just over 75%, so this trend has been playing out for quite some time. We're well-positioned in this segment.\nWe're delivering key technologies, and the company is performing well. This will be very value accretive to us as this segment of the market continues to grow and outgrow WFE.\nGary Dickerson -- President and Chief Executive Officer\nYeah. Harlan, I can add just maybe a little bit to this. I think this opportunity in what people refer to as specialty semiconductor is significant. About two years a" ]

[ "BANGKOK, Thailand (CNN) -- Scores of boat people who fled Myanmar and are now in Thailand are to be sent back despite human rights groups' concerns they could be tortured or killed upon return. A photograph released by the Thai navy shows a group of men captured on December 12. \"They will have to be sent back, according to our law,\" Thailand's Prime Minister Abhisit Vejjajiva told CNN. \"They are entering the country illegally. We do what they would do.\" The 12 boys and 66 men who arrived are among thousands of members of the Rohingya minority who have fled Myanmar, formerly known as Burma, because of persecution and in search of a better life. Many of them make it across a dangerous sea crossing in crowded boats to Thailand where they are housed in camps. But the Thai navy has been accused of forcing the boats back out to sea. The 78 people targeted for deportation are being held in Ranong, in southern Thailand. Two remain in hospital and no date has been set for the forced repatriation, an immigration official said. But human rights groups are concerned about what will happen to the men and boys when they return. Watch how crowded boats were towed out to sea and abandoned » \"We know as a point of fact that there are Rohingya who've been returned to Myanmar who have ended up in prison,\" Benjamin Zawacki, from Amnesty International, said. \"The Myanmar government has interviewed these 78. Our fear is that if these people are sent back, the government has a record of who they are, where their families are,\" Zawacki said. \"They may be tortured and or they could even be killed. That wouldn't be out of the question -- that is the real fear.\" Sunai Phasuk, Thailand-Burma researcher for Human Rights Watch, said that the Rohingya had the \"unenviable distinction of being the most blighted\" people in Myanmar. \"Denied citizenship, subject to tight restrictions on movement, employment and religious freedoms, this Muslim minority have been the target of abuses by the Burmese military for decades,\" he said. \"Today they face serious risks of state violence and coercion, in part arising from preparations to build a pipeline through their region that will deliver offshore gas to China. Already reports are emerging of forced relocations and other abuses tied to gas exploitation.\" ", "The Myanmar government has not responded to CNN's request for an interview, but the plight of the Rohingya will be discussed at this weekend's ASEAN summit of South-East Asian nations, which the Myanmar prime minister and foreign minister are expected to attend. However, the man that effectively runs the country, Senior General Than Shwe, will not attend. Thai Prime Minister Vejjajiva has stressed the need for regional cooperation to help solve the problem of the thousands of Rohingya fleeing Myanmar. His government views them as economic migrants rather than political refugees and said it cannot accommodate them in Thailand. A recent CNN investigation found evidence that the Thai army was towing boatloads of Rohingya out to sea and cutting them adrift. Hundreds are thought to have died as a result. Vejjajiva said the practice has stopped and insisted the Rohingya were given supplies of food and water. \"We regret some of the incidents that have happened in the past. They are now being corrected,\" he said." ]

[ "iete Generale -- Analyst\nVas, a quick one on China, please. As China is a key country for you. Could you please elaborate on the dynamic there for your key products and if there is any, let's say, impact from lockdowns. And could you refresh our memories and please remind us the current contribution and your ambition on this country.\nVas Narasimhan -- Chief Executive Officer\nYes. With respect -- thanks, Florent. For China, we've outlined our aspiration to become a top three player by 2024, which would be a player that exceeds $4 billion in sales in the market. We've had really a record performance in terms of number of approvals over recent years.\nAnd then also moving forward, I think we'll lead the industry as well in terms of NRDL listings. Key drivers for us has been our oncology portfolio, Entresto, Cosentyx, Lucentis, among others. Now we were growing in the high teens from a sales growth standpoint before the lockdowns. And I think the lockdown -- we continue to grow, but we're growing more in the high single-digit frame at the moment.\nAnd we would expect that to continue until we would see a shift in the overall ability for patients to access medical care in more normal dynamics. That's part of the reason why you see the slowdown in Cosentyx that we saw. With Entresto, given the strength of our overall performance globally, it doesn't really move the needle on that particular brand. So the key brand where it has an impact is Cosentyx and, to a smaller extent, in some of the other brands.\nNonetheless, we continue to believe, given that there's over 1 billion patients -- 1 billion people we can serve with our portfolio of medicines, we have to continue to find ways to continue to reach patients in the framework that is currently in place. And then also be ready that if there's a further opening up, to continue to expand our growth in the market. And importantly, we believe Leqvio and some of our other medicines, Pluvicto, Leqvio, among others, could be significant medicines in China over time.\nOperator\nYour next question comes from the line of Andrew Baum from Citi.\nAndrew Baum -- Citi -- Analyst\n", "A question on the IRA impact on catastrophic coverage and the burden on PBMs and managed care. A significant part of Kisqali is through the Medicare channel. Ibrance seems to be available at a much lower price post genericization. To what extent -- to what extent, excuse me, do you see deflation of the price of Kisqali within the Medicare segment because there'll be preauthorization step [Inaudible] within Medicare prior to gaining access to Kisqali? And do you see any risk of spillover of that, assuming that thesis is correct, to the commercial book of business?\nVas Narasimhan -- Chief Executive Officer\nThat's a good question, Andrew. I think in general I'd say we're doing a lot of scenario planning on how the IRA could impact various brands. And I think certainly on our minds is how the increased exposure of PBMs in the catastrophic, how that will get transferred or translated into actions against some of our medicines. I think the key for us to differentiate versus a generic in a class like in the CDK4/6, will be having a broader indication -- set of indications relative to the existing medicine.\nSo I think that's going to be absolutely critical for us in this class to hopefully have the opportunity to expand into, as I mentioned earlier, Stage 2a, Stage 2b, and Stage 3 patients. Otherwise, I think there could certainly be spillover from -- in the metastatic setting if there aren't broad indications for the other 2 players. So we'll have to see how this plays out. I would also say, in general, in some of these cancer classes, such as the CDK4/6, you do see contracting and you do see the opportunity for commercial insurers to get rebates from branded products.\nSo that would be the, I think, tension there in the system, is they would have to give up their commercial rebates to potentially utilize the generic. So we'll have to see ultimately how all of this plays out. Thank you, Andrew.\nOperator\nYour next question comes fro" ]

[ " think that, we are looking at a huge growth rate ahead of us. And I can't really give you a number.\nBut over the last few years, we have been faithfully collaborating with a lot of our key customers, and trying to come up with design applications that can improve the efficiency, leverage the success of the HPC bigger brain, and also the success of very powerful network in cloud with the 5G data rate and low latency. I think we're seeing more application in all areas, but all of the little devices for the mass market, that is really the sweet spot that ASE has been designing for. And with our key customers, with our early success, I think ASE today almost become the first choice. For example, in 5G, in most of the unique SiP, ASE has always been the first one to engage with our key customers. And I think that trend, hopefully will repeat in 2021 that we will have an even higher confidence, and maybe we'll be able to give you a projected market size, based on the effort.\nBut in the last few years, we couldn't give you that number because we're primarily working with few customers. But now we're seeing a broader, more diversified portfolio. And we gradually understand the design rule, the value, the physical, electrical, the cost performance. So we're just building the database to that. Our fully automated factory really was part of the overall architecture to accommodate that because if we don't understand how the sensor interact physically and electrically with one another, it's very, very difficult to build high multiple die, high level integration with overriding sensor using different materials, different configuration. And I think that is something have become more obvious to us through the effort of the last few years. It's a long answer, but I think it's a key answer -- is a key message I would like to deliver to all of our partners investors.\nGokul Hariharan -- JPMorgan -- Analyst\nGot it. Thank you very much, that's very helpful. Thanks.\nOperator\nNow the line is open to Roland Shu, from Citigroup.\nRoland Shu -- Citigroup -- Analyst\n", "Hi, good afternoon. I think the first question is still for the gross margin. So, look at your IC ATM gross margin in fourth quarter, it improved by 2.4 percentage points with the overall IC ATM revenue was slightly better than 3Q of last year. However, I look at this testing revenue, actually it's been declined a lot in 4Q. So, but still, your gross margins improved a lot. So, Joseph just said, you have a lot of these efficiency improvement and some also with a better pricing environment. Question is, is this improvement on gross margins are write-off or are we expecting the gross margin improvement for this IC ATM will continue even though our testing business declined in 4Q?\nJoseph Tung -- Chief Financial Officer\nWith the higher loading that's continuing with very strong business momentum and the continuous effort that we're putting in terms of improving our overall efficiency, and also with the closer collaboration with SPIL to create further synergy, I do believe that in '20 -- this year, we'll continue to see margin improvement at the gross level.\nRoland Shu -- Citigroup -- Analyst\nOkay, Yeah.\nJoseph Tung -- Chief Financial Officer\nAlthough there are some headwinds in front of us, including the strong NT dollar and also, as you mentioned, the -- we're still trying to -- we're in the process of recuperating, some of the lost test business, which tend to have a higher gross margin. But all -- putting all of these together, I think that there are some plus and minuses. But we still, we're still fairly confident that we will continue to see margin improvement going forward.\nRoland Shu -- Citigroup -- Analyst\nUnderstood. Yeah, and for your testing business, actually, in past couple years you had a big amount of the testers and then you also would like to increase this testing business. However, I think in 4Q, the revenue for the testing was the lowest quarter in last year. It was even lower, like 4Q last -- 2019. We think, the EAR probably was the reason for this lower testing revenue," ]

[ "it's going to continue for the next five years, probably peaking in terms of power amplifier requirements maybe two or three years from now. And so I don't get the sense that MACOM is going to be late. I think when we enter the market, our product will be compelling from a performance point of view.\nFrom an ability-to-scale-quickly point of view, remember also that these applications for 5G are also at higher frequencies, 3.5 gigahertz, in some cases, 4.8. So those higher frequencies begin to be challenging for the LDMOS community. And so the frequencies are higher, the volume is at actually the lower power levels, specifically the massive MIMO platforms. And so that is certainly front and center at what we're focused on at the moment.\nSo we may miss some of it, but we certainly recognize that it's a big opportunity. It's a multiyear opportunity. And when we're ready to enter the market with our partners, we believe we'll be successful.\nOperator\nThank you. Our next question comes from the line of Richard Shannon of Craig-Hallum. Your question, please.\nRichard Shannon -- Craig-Hallum Capital Group LP -- Analyst\nGuys, thank you for taking my questions. I look forward to working with you. So I guess you've made some restructuring changes here, and you've given us a sense maybe on a dollar level where we're going to see opex start here in this quarter and into the next couple. But maybe if you can give us a little bit longer-term view on where you think your operating model can go both from a gross margin and operating margin or opex point of view, that would be helpful.\nSteve Daly -- President and Chief Executive Officer\nSure. So just as -- sort of as on a go-forward basis, we probably won't be putting out what I would consider the -- a target model. If I look at MACOM's financial situation at the moment, we're underperforming, and our goal is to incrementally improve that. We want to become an average performing semiconductor company financially, then we want to be an above-average performing company, which means controlling costs, driving gross margins up and increasing the earnings per share.\n", "So that's the priority for the business. And to do that, we need to balance our investment in R&D. We need to really manage carefully our growth aspirations, so that we're investing in projects that we can start and finish and bring to market in a timely manner. So I would say -- I would just generally signal to you that, going forward, you're going to see a tight control on the opex lines.\nWe're going to continue to work on the projects that we believe in. And in projects that we feel we're not going to be successful or they're not going to create financial returns, we'll certainly pivot away from those and we'll start new projects. Jack and I are very focused on return on capital employed. If you look at the capital the company has spent over the past two to three years, for me, it's been quite high, $53 million last year, $32 million the year before that.\nThis year, we're on a pace to be somewhere between $45 million and $50 million. And so one of the first things Jack and I are doing is taking a very critical look at these investments. And as we go into our next fiscal year, fiscal year 2020, we're going to drive that number down. And I think we already have tremendous leverage in the business with the foundation with a lot of that spending behind us.\nBut on a go-forward basis, we're going to be very careful on the capital investments. And so, Jack, maybe you want to comment further on the model?\nJack Kober -- Chief Financial Officer\nYeah. That's fine, Steve. Thank you. So with regard to ongoing operating expenses, we did lay out in our prepared remarks the $50 million of annualized cost savings, and the earlier estimate was we're going to be about 80% of the way there through our fourth quarter.\nAnd that, coupled with many of the things that Steve was referring to, will be driving some additional efficiencies and operating expense leverage as we work our way through 2020. But we're still working through some of the details, and" ]

[ "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," ]

[ "From the stage, Deborah Johns is the angry conscience of the tea party movement. A protester uses a Nazi swastika to make a point at a Tea Party Express stop in Dallas, Texas. \"Question everything your government is doing,\" she tells a crowd of about 100 from the bus's stage in the parking lot of the Winners casino in Winnemucca, Nevada. Under a setting sun on the steps of the state capitol in Little Rock, Arkansas, Johns says: \"Our men and women took an oath when they put on the uniform to defend and protect this country from enemies both foreign and domestic. I think we've got some domestic enemies in the White House.\" On a sunny afternoon in Louisville, Kentucky, Johns works the crowd of about 2,000 into a frenzy. \"The men and women in our military didn't fight and die for this country for a communist in the White House,\" she says, and the crowd erupts in a chant of \"U-S-A, U-S-A!\" Watch rally participants converge on Washington » On the bus, Johns slips off her heels and slips on a pair of ankle socks. She curls up under a quilt her grandmother made. She favors skirts and cardigans -- a pit bull in cashmere. She leads the rallies in each city with Mark Williams, a former talk radio host who now writes books and makes the rounds on cable TV chat shows. Both work for Our Country Deserves Better, the conservative political action committee sponsoring the Tea Party Express bus tour. The tour concluded Saturday at the U.S. Capitol in Washington after a 34-stop tour that began August 28 in Sacramento, California. Williams is the showman of the bunch. His signature line when he gets the mic goes like this: \"You can have our country when you pry it from our ... cold ... dead ... fingers!\" Again the crowd erupts. Watch scenes from Tea Party Express rallies » Seldom seen on stage are the two gurus of the tea party movement, veteran politico Sal Russo and his protégé, Joe Wierzbicki. They are charged with turning the passion on display at the tea parties into political action. They have three goals: Defeat President Obama's health care reform efforts, win back the House and Senate in 2010 and take the White House in 2012. Russo grew up in a house full of working-class Democrats in Monterey, California, and nearly gave his father a heart attack when he became a Republican. ", "His first paid gig in politics was working for Ronald Reagan's 1966 California gubernatorial campaign, and he has worked in conservative politics ever since. Russo often watches the raucous tea party events from his perch in the bus. Besides Johns and Williams each event features several musical acts and featured speakers. The crowd is its own sideshow. Tea partyers are a creative lot, and many in the crowd express themselves by way of their clothing and signs. See some of the getups and signs » \"Obamacare Condense Cream of Crap soup\" reads a sign in Sparks, Nevada. In Dallas, Texas, a darker mood prevails. A homemade sign with \"Obama Lies\" features a bold, black swastika. As the tour moves on, Nazi imagery becomes more prominent -- and sometimes confused. One sign at the Alamo in San Antonio, Texas, has Obama's portrait sandwiched between pictures of Adolf Hitler and communist philosopher Karl Marx. In Canton,Ohio, Obama and Hitler adorn a sign reading \"Hitler made great speeches, too.\" In Elko, Nevada, over a Basque supper of oxtail, lamb and sweetbreads, Russo assesses the tea party movement. \"There are some people who are mad at everyone,\" he says, \"but there are others who say, 'How do we move beyond this and turn it into action?'\" Rare is the conversation with Russo in which he doesn't bring up the name of his idol and one-time boss, Ronald Reagan. But if there is" ]

[ "ng. Our baseband agnostic solutions offer interoperability and are being deployed across leading chipset suppliers, including MediaTek, Samsung and Qualcomm. And with our expanding filter capabilities in TC SAW and bulk acoustic wave, we help our customers navigate complex challenges while extending our reach across a broader spectrum of 4 and 5G bands.\nMoving onto broad markets, at CES, Skyworks announced a unique set of 5G-enabled solutions, including Massive MIMO IoT, a suite of connected home devices and high fidelity smart audio products. Specifically we are powering rapidly emerging IoT applications with cellular-based platforms certified by KDDI, NTT DoCoMo SoftBank and Verizon. We're driving growth with the launch of our Wi-Fi 6 platforms, expanding our customer reach with industry leaders including AT&T, Cisco, Netgear, ARRIS and Aruba.\nWe're advancing automotive content with SkyOne in our emerging V2X portfolio and supplying low power, long range IoT products as [Phonetic] Ring and many others.\nIn the infrastructure space Skyworks is leveraging its capabilities in silicon germanium SOI, gallium arsenide, bulk acoustic wave and ceramic filters while powering 5G MIMO and small cell base station design wins. In addition, we are gaining momentum in automotive, enabling new wins with leaders like Continental, Nissan and Renault along with industrial players including Honeywell, Bosch and GE.\nAs these highlights suggest, we remain focused on driving diversification across high value segments and markets with more than 2,000 products, supporting thousands of customers. So in summary Skyworks has decades of connectivity experience across multiple technology transitions. Uniquely positioning us to meet the performance demands of 5G are portfolio of highly integrated customized connectivity engines bolstered by the early strategic investments we have made anticipating both the complexity and the immense opportunity across our end markets and finally, a highly profitable and predictable business model that allows us to invest aggressively while providing consistent returns to our shareholders.\nWith that, I will turn the call over to Kris for a discussion of Q1 and our outlook for Q2.\nKris Sennesael -- Senior Vice President and Chief Financial Officer\nThanks, Liam. Skyworks' revenue for the first fiscal quarter of 2020 was $896 million, up 8% sequentially and $16 million above the midpoint of the outlook we provided in November, driven by the successful launch of flagship phones and the early success of our Sky5 product portfolio as new 5G phones start ramping globally.\n", "Gross profit in the first quarter was $449 million resulting in a gross margin of 50.1% in line with expectations. Operating expenses were $134 million, down 4% year-over-year as we continued to prudently manage opex while making the necessary investments to accelerate future growth of the business. We generated $315 million of operating income, translating into an operating margin of 35.2%, up 120 basis points from fiscal Q4.\nOther income was $1 million and our effective tax rate was 8.9%, driving net income of $289 million or $1.68 of diluted earnings per share up 11% sequentially.\nTurning to the balance sheet and cash flow. First fiscal quarter cash flow from operations was $398 million, capital expenditures were $111 million, resulting in $287 million of free cash flow on $896 million of revenue translating into a strong free cash flow margin of 32%. We paid $75 million in dividends and repurchased 742,000 shares of our common stock for a total of $74 million. During the last 12 months, we have returned 87% of free cash flow back to the shareholders through a combination of our dividends and share buyback program. We ended the first fiscal quarter with cash and investments of $1.2 billion and we have no debt.\nNow let's move on to our outlook for Q2 of fiscal 2020. Early momentum from the initial launch of 5G as we ramp design wins in our mobile business matched with solid traction in broad markets are driving better than seasonal performance in the Marc" ]

[ "As mental health advocates, policy makers, practitioners, educators and researchers gathered at the Carter Center to discuss the progress in addressing American children's mental health needs, a drama of sorts was reaching its conclusion halfway across the country. The former first lady kicked off the 24th annual Rosalynn Carter Symposium on Mental Health Policy. The governor of Nebraska signed a bill Friday to change a controversial safe-haven law by restricting the age at which a child could be dropped off at a hospital without parents being prosecuted. Since the law took effect in September, 35 children -- all but six of them older than 10 -- have been dropped off at Nebraska hospitals. The revised law adds a 30-day age limit; it was approved by the legislature at a special session Friday and goes into effect at 12:01 a.m. Saturday. These two events appear to have little in common, but they are \"intimately related,\" according to Jane Knitzer, one of the pivotal speakers at the 24th annual Rosalynn Carter Symposium on Mental Health Policy in Atlanta, Georgia. \"Many of these families are families that have come to the attention of the service systems already, have been struggling since their children were young. They haven't gotten the help they need; they are feeling totally desperate. We have a system that doesn't respond early enough and with appropriate intensity.\" Knitzer, director of the National Center for Children in Poverty and a clinical professor of population and family health at Columbia University's Mailman School of Public Health, should know. Twenty-five years ago, she wrote a report that summarized, state by state, the programs available to children with mental health needs and their families, and the policies that govern them. The portrait was a bleak one, with many states not even able to identify the dollar amount budgeted for children's mental health. Twenty-five years later, the situation is improved but isn't much better, according to the report's sequel, \"Unclaimed Children Revisited: The status of children's mental health policy in the United States,\" which was unveiled at the symposium. The landscape is still one of patchwork policy and hodgepodge programs both among states and within individual states, with very few states having a cohesive strategy for addressing the needs, much less the infrastructure and funding to carry that strategy out. \"I am really distressed about how we treat children; this is something I have worked on and been concerned about for years,\" former first lady Rosalynn Carter told CNN. ", "\"We know what to do for them, and we don't do it. When we finally do something with them is when they get in trouble. We neglect children.\" Carter has been a mental health advocate since 1970, when her husband, former President Carter, was running for governor of Georgia. \"We have learned so much about children, about the developing brain and treatments that work, and we just don't use them; that is one reason this symposium is so important,\" Carter said. \"We have children's advocates from across the nation, and if we can just band together and try to do something about it. This is a really, really great time, because we have a new administration in Washington, and hopefully we can form a strong enough advocacy group and get some things changed, if not everything we'd like.\" The endeavor is a giant undertaking, and the number of affected children and families is huge. Research shows that approximately one in five children has a diagnosable mental disorder ranging from \"mild,\" such as attention-deficit (hyperactivity) disorder, to the more severe. More than three-quarters of these children don't get the services they need, and what they do get is based purely on chance: which state they happen to live in. \"For the last 25 years, most of the leadership has come from states as opposed to having a federal system,\" explains Janis Cooper, co-author of \"Unclaimed Children Revisited.\" \"That is kind" ]

[ ". But you still have a lot of runway at the Korean and Chinese customers where you've been kind of underearning last year.\nThat seems to be coming back. So, can you maybe help characterize revenue growth maybe to '21? You've got a very strong one with the domestic suppliers. What should we expect for the -- for the Koreans and China? Thanks.\nLiam Griffin -- President and Chief Executive Officer\nSure. Ed, I'll take this for -- for the first question. And if you have a follow-up, I'll throw it to Kris. Yes.\nI mean great question for you there. And I think one of the things that you know very well is the complexity in 5G and the nuances around that technology. And really, all key elements need to come together. So we were able to put that forward with, of course, our largest customer, but we're also gaining in China with key players, the Oppo, Vivo, Xiaomi.\nWe've got great attachment with MediaTek as well. It's still so early. If you look at units in 5G versus where they could be in a couple of years, right? You've got 6.6 -- 6.5 billion to 7 billion mobile subscribers and we're talking about a couple of hundred million units of 5G phones in 2020. It'll probably double in 2021, but there's still a great opportunity for us at Skyworks.\nAnd the other thing that we do well is we are an under-the-hood player. We get in there with those customers and help them stitch together the necessary technologies to make it work in 5G. When you look at the Oppo, Vivo, Xiaomi, I mean the people support that we provide is very unique. The Sky5 platform is highly integrated and really puts them on a fast, fast timeline to market, which is ideal.\nWe're also seeing our large customer perform extremely well, extremely well, and taking share globally, in our view. So, there's a lot of positives there, and it's sustainable. 5G, again, still early innings. We believe this is a multiyear thematic cycle for us and others.\nAnd then the inflection toward other markets, automotive, IoT, so many other markets that will consume these technologies. I think it just comes together for a good long-term thesis here.\nEdward Snyder -- Charter Equity Research -- Analyst\n", "So maybe my follow-up then kind of hits on that issue. I mean it was only, what, 18 months ago, two years ago that people were frightened about Chinese OEM -- component guys replacing the U.S. suppliers after the Huawei ban, which seems ridiculous on its base, and it's clearly not the case now. So, what I'm trying to -- I guess the question really is, is that the complexity that we've already seen into your largest customers and is now being designed into some of the Chinese phones to acquire some of these more elaborate modules with all the system design, et cetera, that's also kind of porting into WiFi 6E and almost every wireless solution in the current standard at this point.\nAre you seeing -- is the competitive dynamic changing much at all? I mean do you, Qorvo, less -- to much lesser extent, Avago, because they don't play in a lot of these things, outside of that group, are you seeing anybody else? Or is it the reverse, the content that they were providing, especially some of the quasi dispute phones is now accruing to the -- to you and the other leader?\nLiam Griffin -- President and Chief Executive Officer\nYeah. Ed, it was even in the prepared remarks. We are seeing a consolidation. I mean this stuff is it's great technology.\nIt's wonderful. It's amazing for the consumer, but it's really, really hard. And for those companies that have the ability to invest in scale and technology are going to win. And that's not for everybody.\nI mean it's not for everybody. And it's -- we're not the only game -- and I think we've done a great job of advancing in that area and developing the technology. And we build our stuff in-house, which has been strategically advantageous for us. But when you look at China, we provide the perfect recipe.\nWe can scale. We can provide content. We can provide coaching and flexibility in the architectures and bring them to market in a technology that is just incredible toda" ]

[ "e all primarily focused on their core initial, say, commodity, consumer service, but they all have told us they find a lot of value and interest in our services as a complement to them. So I think I know that you'll see the products coming for a couple of years.\nAs far as AST space mobile, yeah, I've noticed that as well. Certainly, it's one of these big ideas that frankly has a lot of invention still to go. We and our predecessor company dismissed the -- trying to do what they're doing has been way too complicated and hard. It would -- it requires -- if you think that what we've done over the last 30 years to get to the point we've done has been hard, you can kind of ratchet that up in order of magnitude or maybe several order of magnitudes for what they have said that they are just going to try to accomplish. The science involved in developing that is going to be expensive, takes a long time. And it's certainly interesting if they're able to accomplish it but I think more is that I'm viewing AST as a indicative of the market enthusiasm in space right now in terms of how they're being valued and considered by the market is then really indicative of whether they are -- what their claim and they'll be able to do in the timeframe, they'll be able to do for the price [Indecipherable] able to do is in any way valid. Hope that helps.\nRic Prentiss -- Raymond James -- Analyst\nGreat. It does. Appreciate that. And I look forward to quote seeing you guys in May. Thanks guys.\nMatthew J. Desch -- Chief Executive Officer\nYeah, thanks Ric.\nThomas J. Fitzpatrick -- Chief Financial Officer\nThanks, Ric.\nOperator\nOur next question comes from Greg Burns from Sidoti & Company. Please go ahead with your question.\nGregory Burns -- Sidoti & Company -- Analyst\nTom, you mentioned SG&A stepping up a bit this year, is the fourth quarter a good run rate?\nThomas J. Fitzpatrick -- Chief Financial Officer\nTotal step -- the fourth quarter a good run rate. I would think about SG&A being up in 2021 a few million dollars, Greg, on the full year.\nGregory Burns -- Sidoti & Company -- Analyst\n", "Okay. All right. Thanks. And then in terms of your GMDSS product, how does that compare to [Indecipherable] solutions out there? And is that being positioned as a stand-alone product [Indecipherable] drive revenue or is it more of service that will pull through your other broadband services? Thanks.\nMatthew J. Desch -- Chief Executive Officer\nYeah, I think I'm not sure everybody heard your question, but it was I think our GMDSS service or maritime GMDSS, is it being viewed as a stand-alone product or something to pull through the rest of our services? It's both. It's always been -- it's been an area that we've not been able to address at all. It's not the narrowband product that we have today when it's used in a emergency perspective. That doesn't bring revenues. It's all the other uses of that terminal that go on, from delivering maritime safety data and navigation data and the use of it for ships business. And that terminal had to be on every ship out there at least all the SOLAS-class ships, and that always had to be from our competitor. So we were always kind of competing for the other terminals on board. Now a ship can be an Iridium only ship and that's -- our partners are excited about that because they haven't always enjoyed competing with delivering a service of a competitor since they were often providing the VSAT service as well. So it can be a stand-alone service. As I've mentioned in my comments, we're kind of really enthusiastic about the fact that this might expand the market for GMDSS. There is hundreds of thousands of ships out there who would love to have a panic button at a low price that connects with all the regional emergency centers and provides information, but it really wasn't very cost effective before. And I mean, we're even wondering if say, insurance companies and others might not be very attracted to encouraging those ship owners to use an Iridium GMDSS service. So hope that helps.\nGregory Burns -- Sidoti & Company -- Analyst\nOkay, thanks.\nT" ]

[ "Andrew L. Shapiro is founder and president of GreenOrder, a strategy and management consulting firm that specializes in energy and the environment and is a subsidiary of LRN. Brad Bate and Ted Grozier, consultants at GreenOrder, also contributed to this article. Andrew Shapiro says society should aim to transform all jobs into \"green jobs.\" NEW YORK (CNN) -- In a recent CNN commentary entitled \"Green jobs: hope or hype?\" Samuel Sherraden argues that green job creation will be insufficient to bring America out of recession. But Sherraden narrowly defines green as a \"sector,\" and fails to see its potential as a strategy for the revitalization of the entire economy. When the public debate is focused around the precise number of green jobs created in, say, a solar panel factory, we miss the opportunity as a country to think more broadly about greening the economy -- and building a foundation for real growth and competitiveness. The aspiration to create \"green jobs\" should really be seen as shorthand for two public priorities -- immediate job creation and long-term transformation of the economy for sustainability and prosperity -- and both goals can be addressed simultaneously. However, in judging our progress, a simple tally of jobs in \"green sectors\" is only a partial indicator of the impact and thus can be misleading. A lot depends here on definitions. For example, Sherraden cites a 2008 report produced by Global Insight on behalf of the U.S. Conference of Mayors, which identifies a little more than 750,000 green jobs in the United States today. A report in the same year, from the American Solar Energy Society, counts more than 9 million green jobs in the United States. This is not to say that one report is better than the other, but to point out that much difference -- in this case, more than 8 million jobs -- depends on how you count. The critical point Sherraden misses is that it's not just job creation in new green industries that matter, but also new jobs in traditional industries -- or the retooling of old jobs -- to make those industries greener. A great example is the real estate industry. Energy efficiency retrofits of buildings and homes have the potential to yield significant savings in energy costs while creating work for building engineers, electricians, contractors, manufacturers and people in a whole host of other industries that would not typically be considered \"green.\" ", "By comparison, 10 or 15 years ago anyone who used a computer was considered to have a \"tech job,\" but now nearly everyone uses a computer (and a cell phone and a PDA) and yet we don't call all jobs \"tech jobs.\" We talk about how technology has changed every industry and profession. Moreover, even investments in sectors we recognize as green can have other positive economic impacts. Investing in wind power, for example, creates jobs in wind turbine manufacturing plants as well as jobs in the industries that supply the plant with parts, jobs producing the materials that make up these parts, jobs producing the electricity used in the plant, and so on. There is solid evidence that investment in green economic activity will result in more jobs than many other comparable investments because a greater proportion of funds would go toward labor and would remain in the United States. The Center for American Progress and the Political Economy Research Institute examined the impact of comparable investments in the oil and gas industry, tax refunds to stimulate household spending, and six specific energy efficiency and renewable energy strategies. They concluded that $100 billion of investment in renewable energy and energy efficiency would create approximately 2 million jobs, compared to 1.7 million jobs from stimulating household spending and about half a million jobs from investment in oil and gas. By investing in renewable energy and energy efficiency as strategies for our economy, we will create jobs in the United States, not just green jobs. More importantly, we lay the groundwork for American economic competitiveness and moral leadership in a carbon-constrained world. If we fail to support environmental innovation through investment and public policy, the United States will find itself at a disadvantage relative to" ]

[ "tend to make their decisions on a sort of annual or quarterly basis rather than on real-time basis. And so when advertising pricing softens, as it has done, they don't react immediately.\nCharlene Liu -- HSBC -- Analyst\nOK. Great. I think on the online game front, in particular, for overseas expansion, can you discuss what are some of the challenges you may anticipate amid our overseas expansion efforts for online game? And can you also share some details on the pipeline? Thank you.\nJames Mitchell -- Chief Strategy Officer\nWell, in terms of the pipeline, both for domestic and the international business, we tend not to talk about games until their launch or at least until they're very close to launch. But just looking at the slide and thinking about what's been publicly announced, TME and LightSpeed both announced a number of titles, which are global IPs and you should expect to be released globally. They also have some other titles which are their own IPs, which we also hope will succeed globally, although time will tell whether that's the case or not. Riot has announced a number of games, including the mobile version of Valorant.\nSupercell has announced three flash-based games. Grinding Gear Games has announced Path of Exile 2. Fatshark's announced Darktide, and so on and so forth. So none of our studios are sitting still.\nAll of them have products in the pipeline, and some of them are announced products, some of them, unannounced products, and therefore, a little bit further away. In terms of the challenges we face, I think that they're pretty similar to the challenges that other companies in the game industry face. Just to touch on two that are front of mind at the moment. One is the war for talent.\nWe believe that the game industry is really a talent-driven industry. And so we spend a lot of time at our own studios and also working with our investee and daughter studios working on the most appropriate compensation plans. And each situation is a little bit different. But in general, we want our studios to be in a position where they can reward the people who contribute very handsomely.\n", "And we think we're there, and we can remain in that good position going forward because it is something we spend a great deal of time and energy on.Another issue for the game industry, because I believe that's front of mind, is the fact that, for the industry as a whole in mobile games, the app stores take a bigger profit pool than the game developers do. And I think there's a number of pressures from a regulatory perspective, from a legal perspective, including some announcements today, that have direct bearing on how that profit pool is split between app stores versus game developers. That should be helpful for game developments in general and especially for some of the smaller game developers. So those are two of the challenges that the game industry outside China faces and that we also face as a participant. \nCharlene Liu -- HSBC -- Analyst\nAll right. Thank you. \nOperator\nOur next question comes from Alex Yao from J. P. Morgan. Please ask your question. \nAlex Yao -- JPMorgan Chase and Company -- Analyst\nThank you management for taking my question. I have a -- first question is a follow-up on the implementation of PIPL. James, you mentioned that the opt-out ratio is quite low, perhaps around low single digit. So presumably the impact on your own property advertising operation should be quite small.\nHow about the impact on your ad network business? Can you share some color? And then secondly, regarding domestic gaming operation. How will the current game monetization approval suspension change your gaming operation and the product launch strategy in the next couple of quarters? Thank you. \nJames Mitchell -- Chief Strategy Officer\nWe haven't yet published. And given historically, we typically publish a mid-single-digit number of new games each quarter, then you can see that we have a backlog that will keep us busy for many quarters to come. So obviously, it would be better for the industry as a whole if -- as and when the BanHao issuanc" ]

[ "ments. The fact that we're smaller, we're denser, more power efficient and generally more performance than other products in the market have certainly helped in this environment. We think it's -- as I mentioned, we are talking to quite a few other telcos about 5G deployments. I'm optimistic about this space.\nAnd I'm going to invite Rob who worked on this opportunity to tell us a little bit more about this specific deployment.\nRob Lee -- Chief Technology Officer\nYes. So I think this is a testament really to the quality of our products and the reliability and performance, all the attributes that Charlie just mentioned and really the suitability of those attributes to 5G deployments. In many ways, it's a great validation that just like the hyperscale environments, which we've spoken to you previously about. In these large telecom environments, really share a lot of the same requirements.\nThey're highly available, highly performance demanding, very mission-critical environment, highly automated as well. And I think those are all attributes where Pure's products and services are uniquely well-positioned to go and serve. And so I think we're super pleased with the win. I think I'd also mention that in this particular environment, we were chosen to replace what was initially a custom design built around open-source software as customer had really tried to build out part of the environment themselves and then turn back to us to -- when they couldn't achieve the reliability performance and really the ease of management and automation required of these very demanding environments.\nKevan Krysler -- Chief Financial Officer\nAnd I'll just hit the operating profit question again. And really, this just comes back down to our strategy really around prioritizing innovation and growth that's paying off. We're seeing it. We've been seeing it for several quarters.\nAnd at the same time, we're increasing our profitability. Now we're balancing that. We had some great hiring, as I mentioned. I think we quarter over quarter, hired over 170 folks and new talent worldwide, which we're really pleased with.\nWe are navigating some higher wage costs as to be expected, and all that's being balanced and incorporated while we're increasing profitability for the year. So hopefully, that's a helpful context.\nTim Long -- Barclays -- Analyst\nThank you.\nOperator\nThe next question is from the line of Eric Martinuzzi with Lake Street. You may proceed.\nEric Martinuzzi -- Lake StreetAdvisors -- Analyst\n", "Yes. I was just curious, I wanted to go a layer deeper on the product gross margins. Curious to see if there's any let up. Obviously, you're putting up good gross margins in a tough supply chain environment.\nBut expedited shipping fees, anything there where you're seeing relief or forecasting relief?\nCharlie Giancarlo -- Chief Executive Officer\nI would say not at the moment. We had hoped back in Q3 and Q4 that the supply chain constraints would start to ease by Q1 or Q2. Unfortunately, we've not seen that. One situation after another just continues to extend.\nIt changes the nature of the supply chain problems, but it extends the supply chain problems. To be clear, we've not seen it get worse, but we've not seen it get better either. And it's across the board, as you're pointing out, everything from logistics shipping, but the ones that -- we can absorb all of that, the ones that always concern us is components and availability of components because that can get you to shut -- or border closures, right? Those are the ones we're most concerned about. But it's still across the board.\nKevan Krysler -- Chief Financial Officer\nIt's across the board. And where the advantage again comes to us is really around the fact that we have less parts that we have to navigate in terms of exposure. And that's really paying off for us, both on the inflationary side as well as supply constraints and how we've been able to navigate against that headwind.\nEric Martinuzzi -- Lake StreetAdvisors -- Analyst\nGot it. Thanks for taking my question.\nOperator\nThis concludes the question-and-answe" ]

[ "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" ]

[ "ss in the last 12 months, more than doubling the number of retail sites in growth markets, growing the number of strategic convenience sites to more than 1,900, delivering a record $1.3 billion of convenience gross margin and increasing the number of electric charge points to more than 10,000. Taken together, this gives us confidence in our growth plans to 2025 and beyond.\nLooking to 2021, you should expect another strong year of strategic progress. We will continue to expand in growth markets, rolling out Jio-BP branded stations in India with 5,500 stations expected in this market by 2025. We plan to increase investment in our Castrol brand to drive growth and value, and further expand our 28,000 strong network of branded independent workshops. We expect to grow our margin from convenience and electrification, supported by a planned further expansion of around 10% in our network of strategic convenience sites and the continued roll-out of ultra-fast charge points across our retail sites in the U.K. and Germany. And we will evolve and personalize our customers' experience by further enhancing our digital and loyalty offers. Finally, as Murray mentioned, we plan to provide enhanced disclosures in early March. This will allow you to better understand why we think these businesses are so valuable.\nMoving finally to low carbon electricity and energy, we are very clear about where we can add value here and we have four focus areas, low carbon electricity, integrated gas, bioenergy and hydrogen and CCUS. Since unveiling our strategy, you've raised some questions about low carbon electricity, in particular, whether we can meet both our volume and our returns objectives. So today, I'm going to focus on three questions that we've heard. The chart here shows BP's projects, pipeline, and hopper on a net basis.\n", "So, question one, will we really put value over volume? The answer is emphatically, yes. Capital discipline is central to our growth agenda. We are clear that value creation will come from the quality of the opportunities that we mature through our hopper into our development pipeline and we will only pursue opportunities that we believe can generate disciplined project returns of at least 8% to 10%. Let me give you an example. In the second half of 2020, our teams evaluated an option to acquire a pipeline of solar assets in the United States. This opportunity had real scale and could have significantly added to our existing pipeline. But despite making into the final few bidders, we withdrew because the purchase price did not underpin our returns expectations. In the fourth quarter alone, we took the decision not to advance over 12 gigawatts of opportunities.\nQuestion two, are there projects available that meet our returns hurdles? Absolutely. At the end of 2020, we had developed a total of 3.3 gigawatts net. This includes projects in our strategic joint venture, Lightsource BP, which has developed around 30 projects to FID with weighted average expected returns in the range of 8% to 10%. And with our U.S. offshore wind joint venture, we reached a major milestone with the announcement of the power offtake agreements. These significantly de-risk the projects, reducing cycle time, and creating certainty over future revenues early in the investment cycle. This means, we are even more optimistic about the value opportunity than when we entered the agreement in September.\nQuestion three, can you find enough projects to meet your volume objective? We're making great progress. On top of the 3.3 gigawatts I've just described, we have a strong pipeline of around 11 gigawatts of options being developed. We have projects in our pipeline across nine countries. Our developed assets plus pipeline grew by around 90% in 2020 and we have a hopper of a further 20 gigawatts of active opportunities under evaluation.\nIn addition, the formation of our strategic partnership with Equinor has completed and I believe has a great future, leveraging the capability and experience of both companies. As I said earlier, the partnership intends to develop 4" ]

[ "he factors that are driving that acceleration in government spend, and then maybe talk a little bit about particularly on the service provider side, it doesn't seem as though we're seeing an acceleration from 5G and IoT yet. Who are the buyers there? How do you anticipate that segment will play out through the rest of the year as you look to work your way through the remainder of the year?\nKen Xie -- Founder, Chairman & Chief Executive Officer\nYes. Carrier and the lot of service provider starting to now reshaping their-wider security network offer whether it's 5G, SD-WAN, all of the SASE and also supporting work from home kind of still in the early stage, I put in this way. So that's where we’re working very closely with all the service provider like the VG [Phonetic] announced today, the AT&T announced last month and pretty much all the service provider to support and then all these shifting of the business model. And I say it's still early stage, but we do involve a lot of testing trial. And at the same time, I do believe eventually the service provider business will go back up to the number one, tend to be like a high 20, like if you go back four, six years ago, but it's a -- because it's a new kind of shifting, so they are -- they do have some work to do and also some big investment we see going forward. So we're working together with them to keep growing this business right now.\nBrian Essex -- Goldman Sachs -- Analyst\nGot it. Very helpful. Thank you.\nKen Xie -- Founder, Chairman & Chief Executive Officer\nThank you.\nOperator\nThank you. Our next question comes from the line of Jonathan Ho with William Blair. Your line is open.\nJonathan Ho -- William Blair -- Analyst\nGood afternoon. Congratulations on the strong quarter. I just wanted to get a better sense of what you're seeing in terms of demand for the SASE and ZTNA oriented products. And are you seeing that pipeline sort of continued to rise, especially as we look at sort of replacements for the traditional VPN connections and other sort of more legacy technologies? Thank you.\nKen Xie -- Founder, Chairman & Chief Executive Officer\n", "Yes, that is the new fast growing market, but also they probably replace some of the traditional approach, but some other traditional approach also expand inside campus, inside -- and probably inside the data center, so that go through the internal segmentation. On other side, we do believe we entered the SASE zero trust network like we said few years ago it's the best position probably saw the service provider carrier. So we tend to be more working with them, partner with them and also offer kind of more tighter integrated solution like we said in the FortiOS7.0 is very integrate OS network inside of some different vendor using different box, so you can kind of look at different inputs factors to that.\nSo that's actually working much better with a wider service provider with customer directly. So that's where we do see there are some fast growing going forward, but it's just part of the whole infrastructure solution will now replace the traditional approach, but also the whole thing's security is smarter than that dynamic space, there is a new team come up and also the -- that alternatives also not goes away. So that's where we try to address this new chain, at the same time keeping at hands the traditional solution and to supporting the customer in all different vertical different region.\nJonathan Ho -- William Blair -- Analyst\nThank you.\nOperator\nThank you. Our next question comes from the line of Ben Bollin with Cleveland Research. Your line is open.\nBen Bollin -- Cleveland Research -- Analyst\nGood evening, Ken, Peter -- Keith, Peter. Thanks for taking the question. I was hoping you could talk a little bit about how you see customer discussions changing or evolving as they contemplate and start to return to their offices and to work. And then also hoping you could touch on how you view the growth opportunity over time from completely new customers versus wallet share expansion with your existing customers? Thanks.\nKen Xie -- Founder, C" ]

[ "n -- inventory has been kind of normalized now and I think that's coming back and should have a good year, especially the hyperscale segment and we are confident in both our ClearEdge and Tri-Edge and PAM4 and FiberEdge platforms there.\nPON, it's had a difficult year this year. We expect that to come back next year, as I mentioned, more fiber-to-the-home, more fiber-to-the-enterprise deployments, particularly in China, but also the 10 gig -- as 10 gig PON starting to accelerate. We feel good about our position there and the growth prospects there.\nBase stations, I'm sure you've heard it from others as well that we think next year is going to be a little bit better than this year and both for 4G and for 5G, but mostly obviously 5G growth.\nAnd then Pro AV products and SIP business should start to really accelerate. That's a small business for us today, but we're expecting very strong growth in that business for FY'21. LoRa, as I mentioned, we're expecting that to grow nicely next year.\nAnd then on the protection side, yes, a little bit more challenging to really call out what's going to happen on the smartphone side. But as I mentioned that, there are good design wins across the globe and we feel pretty good about the Tier 1 smartphone manufacturers shipping more volume and with the 5G -- growth in the 5G side, we should see a good mobile year next year as well. So, again, lot depends on China, a lot depends on the macro, but we feel good about where we are today.\nScott Searle -- ROTH Capital Partners -- Analyst\nThank you.\nOperator\nOur next question is from Quinn Bolton, Needham & Company. Please proceed with your question.\nQuinn Bolton -- Needham & Company -- Analyst\nHi, guys. So, quick clarification. Perhaps I missed it, did you say what types of applications had pushed from CY'19 to CY'20 in the LoRa business or is that more some of the traditional China or smart metering? Or is that some of the newer consumer applications? And then I've got a couple of follow-ups.\nMohan R. Maheswaran -- President, Chief Executive Officer & Director\n", "Yes. I would say, it's more the consumer applications, Quinn. The China LoRa business was really weak in the first half, came back I think to more normal levels in the second half and it's more industrial, it's more metering and environment. And those markets tend to take longer time anyway, but they -- once they're there, they just will go on for quite some time. I think the more consumer-ish smart homes, smart asset tracking, a little bit more difficult to predict the timing of those, but when they come, I think it will be significant.\nQuinn Bolton -- Needham & Company -- Analyst\nGreat. And then the second question is, you mentioned growing demand in the 5G front-haul for your ClearEdge product family, just wondering, are those typically going into a CWDM4-type modules? Are they single lanes at 25? How big is that opportunity as we deploy the 5G networks in much greater scale next year?\nMohan R. Maheswaran -- President, Chief Executive Officer & Director\nYes. I think it's -- actually all the links of the front-haul and mid-haul links will probably require CDRs, and so it's more content for us, that's the -- probably the main driver versus 4G base stations. And then, I think just the number of base stations drives more of a volume increase as well. It's early days, but we feel good about the fact that these are -- these 25-gig links follow -- are going to use ClearEdge platform, which is a proven platform for us in the data center market. And so, we feel really good about our CDR position in the base stations and most of these have integrated drivers and things like that. So, really the differentiation is quite clear for us in the market. So, yes, I think we're in good shape.\nQuinn Bolton -- Needham & Company -- Analyst\nAnd then, do you see any applications for the FiberEdge or the PAM4-based modules in that front-haul mid-haul or do you think that's mostly NRZ signaling for the foreseeable future?\nMohan R. Maheswaran -- President, Chief Executive Officer & Director\nNow, we see FiberEdge as" ]

[ "all over to Tyson.\nTyson Tuttle -- President and Chief Executive Officer\nThank you, John. We are pleased to report record first quarter revenue. The pandemic has led to an accelerated digital transformation creating market opportunities we've been able to seize through organic growth despite unprecedented global supply chain constraints. The revival of economic activity stemming from the recovery signals greater market growth ahead and we are well positioned to continue to capture share in 2021. Our opportunity pipeline continues to be robust at $15 billion and our design win lifetime revenue achievement in Q1 was up 8% year-on-year. Bookings have been very strong in recent months with the semiconductor industry poised to deliver an excellent 2021.\nTurning to our IoT business. Wireless connectivity products continue to see surging momentum posting greater than 40% year-over-year growth in first quarter revenue. In Q1, we saw strength across our entire wireless portfolio with robust and consistent growth in all of our major wireless connectivity protocol. Security continues to be critical for the IoTs expansion and Silicon Labs has established a clear and unique leadership position in protecting IoT devices against bad actors.\nIn March, Silicon Labs became the world's first Silicon innovator to achieve PSA certified highest level of IoT hardware and software security. Our Secure Vault technology sets the standard for IoT security, effectively protecting against hardware and software attack. We've made strategic investments to ensure security as a core strength. Becoming the first company to achieve PSA level 3 certification is strong validation of our leadership role in securing the IoT.\nIn addition to delivering superior security in our high performance parts, we provide strong security in our battery optimized devices like the xG22, which just became the world's first wireless SoC to earn CCEF Level 3 Certification using the Diabetes Technology Society's DTSec security protection profile. DTSec sets the security standard for protecting personal and confidential healthcare data transmitted through connected devices.\nIn addition to becoming more secure the IoT is becoming more intelligent in areas such as motion detection, sound recognition, image classification and preventative maintenance. Developers innovating for these solutions faced obstacles and linking their machine learning models to real-world information. To help overcome these challenges, we have partnered with Edge Impulse to enable the integration of their tiny ML solution into our SoCs and MCUs. This is just one example of the ways that we are bringing the power of machine learning to developers of wireless edge devices.\n", "Smart lighting continues to be a key growth driver for IoT business and we have a strong position in the lighting market, to enlarge part to our unique combination of best-in-class SoCs, and industry-leading portfolio. Our 15.4 mesh and bluetooth low energy products are deployed throughout the smart lighting industry, which is growing at a CAGR of 30%. A great example of this is our work with Yeelight, we recently launched a new smart LED light bulb with our BG21 Bluetooth SoC. This smart lighting products enables users to connect and control smart home devices directly from the Google Home app without the need for any other apps or software.\nThe exceptional user experiences our technology helps deliver are influencing the broader IoT ecosystem which will help more and more IoT products become mainstream. We are world leader in providing wireless connectivity solutions for the smart home, pushing the envelope to improve simplicity and ease of use. We recently collaborated with Allterco, to create the Shelly Motion, a new WiFi motion sensor with the world's lowest power consumption in mass production today.\nShelly Motion features up to 3-year battery life before recharging and is ideal for a wide range of motion sensing applications like lighting and security. Shelly Motion is another great example of our relentless focus on designing produc" ]