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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" ]

[ ". 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" ]

[ " views on technology as are we and when it will be ready. And as Kent pointed out, we're doing some novel process development and linking it into how we might run our con -- our conversion plants or ad -- adapt those plants and those designs for that capability.\nSo it is early days, but our model is really well-positioned with its customer base and it's spread across the various cathode technologies, and with our global footprint to -- to really take advantage of that trend as it develops in the next decade.\nDavid Begleiter -- Deutsche Bank -- Analyst\nThank you. And -- and just on your Wave 3 projects you list on Slide 8, when should -- should we see -- expect the formal announcement on which project will be mo -- moving forward and how do you rank order of these projects right now in your mind as likelihood of moving forward first?\nKent Masters -- Chief Executive Officer\nYeah, I think the order that we listed them, that's kind of our -- our order, so we expect to see a China facility would be the first thing that we would move on. We're -- we're working on that, investigating it, doing planning around it now. But it -- it's still at a -- it's a point where it could be an acquisition and then an acquisition using -- has some element of work to it before it really becomes an Albemarle facility or a greenfield plant. But we're -- we're working on that now and we'd probably come to a FID on that late '21, depending on whether it's an acquisition or a Greenfield.\nDavid Begleiter -- Deutsche Bank -- Analyst\nThank you very much.\nOperator\nThank you. Our next question comes from Ben Kallo with Baird. Your line is now open.\nBen Kallo -- Robert W. Baird -- Analyst\nThanks for taking my question. Maybe I'm just taking a step back. Could you talk a bit about just visibility in your lithium sales as we move into next year? Like we see all these announcements from big auto EMS and -- and -- and then smaller start-ups. And can you talk about how your salespeople attack those companies and then your lead time to that? And then maybe meet -- weaving in next year going from I think the Streets are like $850 million this year to over $1 billion of EBITDA next year.\n", "Not to ask for guidance for '22, but just can you give us some puts and takes for growth in -- in '22 with -- with both volume and then how you think about pricing as well? Thank you.\nEric Norris -- President of Lithium\nGood morning, Ben. This is Eric Norris. First, in terms of the visibility, we see -- see near term, which I think was your first question. We have two approaches we take, right? One is exactly what Kent described in the call, which is a macro to micro approach of modeling demand, and that has led us with some of the announcements you've referenced to increase our demand outlook on a macro basis.\nThat -- a big part of that is what happens on the ground with our salespeople. Our strategy has been and will continue to be to use contracts to secure long-term volumes. That requires a discussion with the customer to commit anywhere from three to five years and a discussion that follows that into the details of what they are looking at from -- from a -- from a specific chemistry, location, and quantity point of view. So I'd characterize our visibility as -- as quite reasonable and good in that regard, giving us the certainty we need to expand and positioning us well in the market to grow with -- with the additional resources we have.\nMaybe you could repeat your second question?\nBen Kallo -- Robert W. Baird -- Analyst\nMy second -- my second question was just the -- the Street is modeling about 20% growth, and it's mostly coming from lithium from '21 to '22. Can you talk about the -- the puts and takes that we should think about without giving -- without having to give guidance, but the -- the volume you're bringing on and how we should think about that versus pricing that maybe rebalance as you move to new contracts?\nScott Tozier -- Chief Financial Officer\nYeah. Ben, this is Scott. I'll take -- I'll take that question. So as you look into 2022, the volumetric growth comin" ]

[ "A top Iraqi political figure -- who also is an imam at a prominent Shiite mosque in the capital -- urged the abolition of militias Friday and decried violence and pervasive corruption in Baghdad's Sadr City. Sheikh Jalal al-Din Ali al-Saghir is a parliament member and a representative of the most influential Shiite cleric. Sheikh Jalal al-Din Ali al-Saghir, speaking at Buratha Mosque, blamed the corruption on followers of anti-American Shiite cleric Muqtada al-Sadr. Al-Saghir is the most senior representative in Baghdad of Grand Ayatollah Ali al-Sistani, arguably the most influential Shiite cleric in Iraq. As a member of Iraq's parliament, Al-Saghir represents the Islamic Supreme Council of Iraq, part of the ruling United Iraqi Alliance. His political group dominates the Iraqi security forces and has been fighting members of a rival Shiite group, al-Sadr's Mehdi Army militia. He said the Supreme Council, part of the ruling United Iraqi Alliance, once had an armed group called the Badr Brigade that is now a renamed non-military organization. He repeated Prime Minister Nuri al-Maliki's call for all armed groups not affiliated with the government to disband. \"We said from the beginning, and since 2003, the necessity of laying down the weapons by all, and the weapons should be in the hand of the state,\" al-Saghir said. He praised Iraqi security forces' efforts in Basra, the southern Shiite city where al-Maliki launched an offensive in March. The cleric said al-Maliki freed the region of gangs. \"We can say that the Iraqi security forces have made a great change in terms of establishing the security and imposing the law,\" al-Saghir said, adding that effective security must be imposed to ensure the fairness of this autumn's provincial elections. \"The elections will be tomorrow,\" he said, meaning soon. \"How can we respect ourselves as politicians, political parties and officials within the government? How can we respect ourselves by saying we conduct honest elections while there are gangs controlling areas or provinces?\" Meanwhile, Sadrist cleric Suhail al-Iqabi delivered a fiery sermon in the eastern part of Baghdad as hundreds of Sadr City residents sat on the street performing Friday prayers. Al-Iqabi said an \"act of genocide\" is taking place in the town. ", "Speaking to hundreds of worshippers chanting pro-Sadr slogans, al-Iqabi accused the government of holding a grudge against Sadrists and the people of Sadr City \"who are facing genocide in every sense of the word, cutting off the water, electricity and shelling the innocent civilians, killing women and children and detaining women.\" His sermon included a prayer asking God to strengthen al-Sadr's Mehdi army and \"sharpen their weapons.\" \"What the prime minister stated in his press conference, all that he said that was so far from reality, the nonsense and false accusations he used to cover up his huge failure leading the nation's affairs,\" al-Iqabi said. \"... We call on all politicians, journalists, intellectuals, civil society institutions, tribal leaders and clergy to visit Sadr City to witness the crimes committed by the occupier and government forces.\" In Sadr City, nearly 1,000 civilians and fighters are thought to have been killed since late March in fighting between security forces and Shiite militants. However, al-Saghir said there has been \"good security progress.\" Watch as fighting destroys a school » \"I believe the coming days will witness many developments which will lead to the protection of this city from these gangs,\" he said. He urged people who have grievances to make their voices heard through the political process. He decried those who arm themselves under the pretext of sectarianism or occupation. Al-Saghir emphasized what he called corruption in Sadr City and the role of Sadrist followers in promoting it. He noted that imams from the Supreme Council were booted from several mosques and replaced by politically correct imams, and he said companies have" ]

[ "t secure and connected infrastructure and the future of the workplace are influencing demand. The focus of our global healthcare crisis response team is gaining momentum with an increase in healthcare awards and the pipeline across all geographies. As an example, we were recently awarded health investment in technical advisory services for a Middle East government entity and a therapeutic goods laboratory project in Asia Pacific. In the water sector, we are seeing accelerated implementation of digital technology such as smart metering, automation and remote management as well as focus on cyber resilience. While some utilities have experienced significant revenue impact during the pandemic, pre-approved programs remain in place. We anticipate periodic pauses as they reprioritize capital budget to focus on operational spend, budget optimization and digital transformation.\nThe environmental sector is seeing an uptick, with green recovery being pledged in Europe and in Australia, and a shift toward green energy investments in the US, which could be a growth catalyst later in 2021. Across all core sectors, our discrete solution sets are making progress, allowing us to cross sell and leverage our global market connectivity. While economic and geopolitical indicators point to continued volatility, we remain optimistic due to our resilient and balanced portfolio across core sectors and geographies and our agility responding to shifting market trends.\nNow I'll turn the call over to Kevin to discuss our financial performance in more detail.\nKevin Berryman -- President & Chief Financial Officer\nThank you, Bob. Let's now turn to Slide 9, for a more detailed summary of our financial performance for the fourth quarter. Before I begin, please note that our fiscal fourth quarter 2020 included an extra week compared with the fourth quarter of fiscal 2019. While this impact was factored into our guidance, it represented approximately $100 million in a year-over-year net revenue tailwind for each of CMS and People & Places.\nFourth quarter gross revenue as a result, increased 4% year-over-year with pro forma net revenue up 2%. People & Places net revenue was up 8% year-over-year and Critical Mission Solutions declined 3.6% on a pro forma basis. The CMS decline was mainly attributed to the early impact from transitioning off of two lower margin contracts, as I will explain later in more detail. It is important to note CMS operating profit on a pro forma basis increased 14% year-over-year.\n", "Adjusted gross margin in the quarter as a percentage of net revenue was 23.5%, down a 135 basis points year-over-year. The lower gross margin was driven by a combination of factors, primarily within People & Places, including overall revenue mix, the comparison versus a very strong year-ago quarter, the impact of some project closeout costs and the previously discussed flow-through effect of the reimbursable rate of a more efficient fixed cost structure in the LOB. The lower reimbursement rate for fixed cost is more than offset by the underlying lower level of G&A costs. This impact to reimbursable rates from our cost structure is also reflected in overall lower G&A as a percentage of net revenue of 100 basis points year-over-year to 14.4%. As it pertains to G&A, the fourth quarter continue to benefit from lower travel and employee related medical costs.\nGAAP operating profit was $22 million and included $211 million of restructuring, transaction, and other charges of which the vast majority was associated with our recently announced Focus 2023 initiative and $24 million of other charges, consisting of $23 million of amortization from acquired intangibles and $1 million of costs associated with the Worley transition services agreement. Adjusting for these items, adjusted operating profit was $258 million, up 2% from the prior-year figure.\nOur adjusted operating profit to net revenue was 9.1%, down 30 basis points year-over-year on a reported basis, a result of the lower People & Places margin discussed earlier. This was partially offset by improved critical" ]

[ "net sales side, EUR 22.6 billion to EUR 23.8 billion, and the comparable operating margin between 11% and 13.5%. Free cash flow, we actually have changed how we guide that in the future. So now it's a conversion from comparable operating profit to cash flow. And we believe that in 2022, that will be between 25% to 55%.\nAnd let's look into each of these in a little bit more detail, what is the background and support for these. Starting with the top line. If we look at the operating -- the addressable market, we see that it's growing about 3% on constant currencies. And we see growth across all businesses.\nIn Mobile Networks, the driver is 5G deployments. In Network Infrastructure, it is connectivity, investments in national broadband initiatives and also the fixed wireless. And when it comes to cloud and network services, we see continued growth in enterprise sector, especially in private wireless, but also Webscale like Edge computing. And regionally, I would say that we see growth in all regions, especially in North America, Europe and Asia Pacific.\nAnd of course, without the constraints that we see in the supply chain, I think we would see higher growth than this as well. Just a couple of words about Mobile Networks as well. This is now excluding China. And Network Infrastructure is excluding the Submarine business.\nAnd mobile networks growth of 3%. I would say that if we compare with external analyst firms like Dell'Oro, this is pretty much aligned with their expectations as well. This is now in constant currencies in euros, while they usually have USD. And also the perimeter is a little bit different.\nThey only look the RAN while we have a little bit wider perimeter. And if we look at operating margin, we can see that starting from '21 and excluding the one-offs, about 150 basis points we land at 11%. And we see that sales growth and operational improvements will be the main driver of the margin improvements during this year, of course, tempered by the impact from supply chain costs, general cost inflation and also our own investments for the future. So 2022 will be a continuation of the path toward our long-term targets.\n", "And then finally, when it comes to our cash flow guidance. In 2021, we had very strong cash conversion, almost 90%. And in 2022, most of these factors will be similar to '21. But we assume increased outflow of net working capital as we build more inventory.\nAnd I believe also we will have more normal customer payments. When it comes to Nokia Tech, we're going to have about EUR 450 million impact from the prepayments that we have received in earlier years. And this together will lead to cash conversion between 25% to 55%. In the long term, when we see more normal net working capital development, we believe that cash conversion should be between 55% and 85%.\nBut also, if you take 2021 and '22 together, we will actually be already around that area that we see in the longer term. So thank you from my side. And back to you, David. \nDavid Mulholland\nThank you, Marco, and thank you, Pekka, for the presentations. Before we move to the Q&A session, I just wanted to give you all a date for your diaries. Following on from the Mobile Networks progress update that we did back in December, our next event for progress updates will be on our Network Infrastructure business, and that session will be held on Thursday, the 17th of March. We'll send the details out to you shortly.\nWith that, over to the Q&A. As a courtesy to others in the queue, could you please limit yourself to one question. Rachel, could you please give the instructions?\nQuestions & Answers:\nOperator\nThank you. We will now begin the question-and-answer session. [Operator instructions] I will now hand the call back to Mr. David Mulholland. \nDavid Mulholland\nOur first question comes from Andrew Gardiner of Citi. Andrew, please go ahead.\nAndrew Gardiner -- Citi -- Analyst\nThank you, David. Good morning, guys. Appreciate you taking the question. I had one on the sort of revised long-term margin target, please.\nYou spoke, Pekka, about the phases of the s" ]

[ "hout asking for any new infrastructure, they just have a sudden increase of new -- of systems. And therefore all devices are short. This is the problem we're addressing.\nWhen people are talking about the COVID-19 impact will dissipate, we don't see that. Of course we do understand sooner or later, this will disappear. However, you have the following multiple waves of AI, IoT, smart manufacturing, that we're aggressively building up the infrastructure, which will in turn require a lot of new system which demand semiconductor devices all levels. So I think industry will be in short. And this is a comment that the Foundry guys are making. I mean, the 2021/2022, 29 new fabs are being deployed. Everybody sees this, but the industry has no incentive to build the manufacturing infrastructure ahead of the curve. This is standard practice. The COVID-19 give you a very good short term incentive, even though we do not know, this impact will be three years, four years or two years. However, we have enough belief and vision that all of the capacity will be needed and will be good for the world. And this is what the -- our view is.\nKen Hsiang -- Head of Investor Relations\nNext question, please.\nRandy Abrams -- Credit Suisse -- Analyst\nThanks, great. And the second question -- OK, yeah in the second question and one clarification in the first too. The local adjustments, if you think those are all driven by the constraints up and down the chain or are you seeing any pockets of application weakness? That's just kind of just a clarification. And then my second question just on the guidance, I know you mentioned that first quarter above seasonal. For fourth quarter, if you're coming up with above seasonal third quarter, do expect to grow in the IC ATM in fourth quarter? And then the other part on pricing being stable, I know you talked about there's expedites and a friendly environment. So I'm curious, given we're in the peak season, what's kind of keeping price stable or why you're not seeing a little bit of a sequential improvement on pricing?\nKen Hsiang -- Head of Investor Relations\nRandy, so you're looking for a fourth quarter, somewhat of a fourth quarter outlook, and also a pricing environment commentary for the rest of the year.\nRandy Abrams -- Credit Suisse -- Analyst\nYeah, yeah.\nTien Wu -- Chief Operating Officer\n", "Okay, I think the first comment is, yes, we're seeing some local adjustment. And I -- we do not know the reason why there are local adjustments. It could be business related or it could be a component shortage related. However, those are very localized and temporal. And we're seeing the adjustment down and adjustment up right away. So at this point of time, I think the best comment we can give to you is, it does not affect the overall business momentum, at least this is what we can see now. The comment on the Q3 to Q4, yes, we are expected Q3 growth. We're expecting Q4 growth, just like last year. The comment about Q1 of 2022, of course, I'm hoping to see another record. Q1 is better than Q4 of the previous year. However, I'm not going to say that right now. But this is what I'm hoping for. And I believe, if we have a clear, a good optimistic Q1 in 2022, that momentum will carry throughout the 2022. And this is our current view, and then we'll deal with 2023 at a later date.\nJoseph Tung -- Chief Financial Officer\nA thing on the -- also, this is Joseph here. I'd say, also on the margin side, we will see sequential growth on a quarterly basis for the second half of the year as well as we continue to see volume expansion as well as continuous effort and efficiency improvement, including automation. That is an aggressively growing bottom line. And for next year, we're still seeing, there's also room for improvement further in terms of our margin. And we're seeing a very, very healthy development in overall financial performance. going forward.\nTien Wu -- Chief Operating Officer\nI mean, there's one comment, I will not talk about the overall pricing comparison. However, pricing is given by the market. I mean, it's not defined b" ]

[ "ge, you need to have a increase in power to get to more distance as you have a higher bandwidth there. Typically, those radios are going to be more powerful and therefore I think potentially more dangerous. And I think one of the things we expect is most phones, whereas the attach rate today of proximity sensing for SAR functionality is fairly, you know, not so high. I think for 5G phones, it's going to be much higher. And so that's really a good opportunity for us.\nIn addition, for protection. So that's for proximity sensing and from a protection standpoint, we see the same type of improvements required, high speed interfaces, more advanced processes, different displays requiring protection. And it's just a more challenging environment as everything is faster and more -- has more advanced lithography, so more advanced displays. So, again, protection and proximity sensing, we expect to do quite well going forward due to 5G also.\nTristan Gerra -- Baird -- Analyst\nGreat. And then last one, in terms of the growth for LoRa that you see for this year. How should we model China? I thought China would have decline as a percentage of total LoRa revenue. Do you actually expect China to be flat to up year-over-year this year? Or is the new target embedding China to be down year-over-year?\nMohan Maheswaran -- President and Chief Executive Officer\nI would think that China would be maybe slightly up year-over-year, Tristan but I think we did anticipate it would be a much higher growth this year to be fair, as we planned over the year, a lot of the growth we did expect from China. But I make the comment on the opportunities being more balanced just for that reason. We just don't know where this whole tariff thing is going to lead to and those type of things. And, you know, one of the things we pride ourselves on is having geographical balance and end market balance. And this is one of the reasons, it's that we can't predict what's going to happen regionally. All we know is we have very good momentum also in North America. We have very good momentum in Europe. But yeah, for this year, the projection was that China would be growing faster and I think it's going to be fairly muted growth.\nTristan Gerra -- Baird -- Analyst\nOkay, great. Very useful. Thank you.\nOperator\n", "Our next question comes from line of Karl Ackerman with Cowen and Company. Proceed with your question.\nKarl Ackerman -- Cowen and Company -- Analyst\nHey, good afternoon. Emeka or Mohan, your comments on China PON demand largely echo peers who have reported already. But I think you sound a little bit more optimistic on 100 gig optical components than peers. So what are you seeing here in terms of bookings for 100 gigs for the second half of the year? And, how should we think about the opportunity for your PON business as 5G ramps later this year?\nMohan Maheswaran -- President and Chief Executive Officer\nKarl, I think the -- so separate PON from data center. So there's really two markets we're playing. PON is the one that's majority China, mostly China driven, mostly today 2.5 gig and 1 gig PON. We are seeing growth in 10 gig deployments. The challenge for us with PON is that, Huawei has really been one of the key drivers of that business in China and obviously with the Huawei ban that puts some challenges around that business. In addition to that, China has been the main region for PON deployments. There are other regions deploying, but China has been the -- by far the highest volume. And so you combine the slightly modest investments in -- reduction in investments by the China government in PON and then combine that with Huawei ban that puts really a headwind on PON business.\nNow, separate that from the data center business. The data center business we've talked about inventory builds in Q4 and Q1. We started to see that free up now in Q2, started to get more balanced and we expect the rest of this year to be a little bit better for data center and most of those 100 gig, 4x25 gig and IC optical module deployments. And so that's where we see the benefit there on our CDRs.\nKar" ]

[ "Love it or hate it, the Hummer came to symbolize American might over the years -- tires the size of Texas, a chrome grill that looked primed to eat up wimpy cars in its path, and its drivers with egos to match their mammoth-mobiles. But the iconic vehicle -- a symbol for macho men like Arnold Schwarzenegger and ridiculed worldwide by environmentalists -- is headed toward the auto graveyard. General Motors last week announced the likely end of the Hummer after a deal with a Chinese automaker fell through. The news thrilled many who have protested the guzzler for years: Good riddance! But for Hummer owners, the reaction remains mixed. Most mourn the impending death of their beloved behemoths but celebrate the fact that the Hummer won't be outsourced to China: Whose harebrained idea was that anyway?! Ain't no Hummer meant to be made in China! Owners are hoping for a last-minute buyer to emerge before the Hummer joins the maligned Pinto in the scrapyard. GM has said it is trying to salvage the Hummer, setting May 1 as a deadline for other possible deals to be made. A single sticky note, left on Russ Builta's 2005 Hummer, sums up the emotion stirred by the super-sized SUVs. \"You are polluting our air and abusing our national resources,\" the unsigned note said. \"And all because of greed and selfishness. You should be very ashamed of yourself.\" Builta, who served in the Marine Corps, still gets mad: \"It was not even on recycled paper!\" Builta installed a supercharger that gave his Hummer a whopping 600 horsepower. When he really mashed the pedal, it got 1 mile per gallon. \"It would just move,\" he told CNN iReport. Check out Builta's mega-ride After the HMMWV rolled off the AM General assembly line in Indiana on January 2, 1985, it represented a new breed of American military might and toughness. In 1992, production of the civilian Hummer began, instantly creating a fraternity among owners of the SUV-on-growth hormone. They exchange photos of their trucks, chat over the Internet and plan for their next muddin' sessions. They laugh at tree huggers who give them the finger as they cruise down the road. ", "\"I hate to see it die,\" says iReporter Michael Tawdy of Tennessee, who owns a 2006 H3. \"You can go anywhere you want.\" Hummer: What might have been The Hummer even shares its name with a sexual term. How many cars can stake that claim? And the vehicle became fodder for late-night comedians and Internet jokes. \"You might be driving a Hummer,\" says one joke on a Web site devoted to the vehicle, \"if you can't reach far enough to slap the person sitting in the passenger seat.\" The grass-roots social justice group CodePink created an anti-Hummer campaign during the height of the Bush administration, including a Top Ten Reasons Not To Buy A Hummer. At the top of the list: \"The Gas Mileage Alone Will Kill You.\" Billy Paniaha of North Carolina gets speechless when talking about his chrome-and-gray-mobile. \"I love my Hummer,\" he told iReport. In one photo, he's leaning against his mud-caked Hummer, which looks like it just wallowed in a pigpen. \"Trust me, these tree huggers in their Priuses. ... If a Prius hits me, I won't get hurt. They will.\" Paniaha hot-dogs in mud Raymond Winbush isn't your ordinary Hummer owner. A lover of his giant SUV, he also owns -- are you ready for this? -- a Toyota Prius. \"People think I'm kidding when I say I have both cars, but I do,\" said Winbush, an author and the director of the Institute for Urban Research at Morgan State University. \"If you combine my carbon footprint ... I don't feel real guilty about it.\" A resident" ]

[ "that, that number is sustainable. I think it will come back to the 55% area that we're at for this quarter. And we'll use those couple of points as some pricing leverage to really start dialing up the revenue growth.\nBill Peterson -- Analyst\nYes thanks for that. Maybe just from the final segment you talked about in the wireless space. I guess, at this stage, it really feels that you're very reaching your run rate as of now. Trying to get a better understanding of how we should think about the growth of that segment from here? And what will be driving that growth between Wi-Fi, Bluetooth, any particular commentary on some of the end markets? You talked about some of the design wins. And I guess, finally, related to that, are there any areas you're focusing your investments on, I guess, organically or as you really feel you need to maybe try to augment your portfolio inorganically?\nMichael Hurlston -- President and Chief Executive Officer\nYes. I think that our strength right now is in products that transfer video. So where we've done really well is in streaming devices, in security cameras, in drones. Anything that's moving video is where we've done very well. And those segments, obviously, are growing rapidly. We're coming from a very, very small base. And so we've been able to pick up outside traction. That's mostly Wi-Fi. It's Wi-Fi leading. But for the most part, our products are WiFi-Bluetooth combos. We've also done well, as we talked briefly about in the prepared remarks, in watches. We have that GPS asset, with it, it's just relatively unique. And so in the sort of wearable market, we've also done relatively well. I think as we think about it going forward, we've got these roadmap products that are coming from Broadcom, and I think those do open up additional segments for us. We think we can go into industrial. We can go into some more low power type applications and we're pretty excited about that. I think it opens up -- it strengthens our current field of use, but then opens up some additional fields of use. And we really, really feel good about this business and think it can be a grower for us -- outsized grower for us over the next couple of years, frankly.\nBill Peterson -- Analyst\nAppreciate the color there. Thank you.\nOperator\nNext question from Kevin Cassidy. Your line is now open.\n", "Kevin Cassidy -- Rosenblatt Securities -- Analyst\nThanks and congratulations on the great results. You mentioned that your backlog is more than 100% of your guidance. Can you talk about how the customers are reacting? How far out are they placing orders? And do you see a time when you can catch up to the backlog?\nDean Butler -- Chief Financial Officer\nYes. Good question, Kevin. I think probably every semiconductor team has probably been asked a similar question. And our answer is probably similar to most, which is, it's really challenge out there. Lead times are expanding from our suppliers. We, in turn, are encouraging customers to place -- extended lead times on us so that we can get the wafer starts and supply lined up for them. And so we do have actually probably more visibility than we would normally have at this point in the cycle. We don't have an exact time frame on when we might be able to service and fully catch up to all customers' needs. It does seem like the supply constraint is likely to last all of 2021, if not a little beyond. So it's just -- it's hard for all of the supply chain, I think, to respond. In turn, if you think about all the moving pieces to put a semiconductor product together with the lead times and the fabs and cycle time, it's just -- it's really challenging to respond all at once.\nKevin Cassidy -- Rosenblatt Securities -- Analyst\nOkay. Understood. Congratulations on the continued momentum on your set-top box designs. And maybe also, if you could help out with the dynamics there. Are those service providers concerned about supply? And I know you're expecting to announce the design wins, but would they start giving you orders earlier than what would be a normal cycle for a set-top box?\nMichael Hurlst" ]

[ "ecurring revenue as-a-service business model, absolutely that model has a higher margin potential going forward. But of course, that will be evolutionary development over the coming years.\nDavid Mulholland\nThank you, Richard. We'll now take our last question from Fredrik Lithell from Handelsbanken. Please go ahead. \nFredrik Lithell -- Handelsbanken Markets -- Analyst\nThank you very much. Thank you for taking my question. I would like to tap your brain a little bit on the enterprise 5G again, and maybe single out the wrong market aspect of enterprise 5G for the coming years. And if you could for us sort of frame a little bit what the potential in terms of RAN market growth is coming from sort of new segments, if you like.\nTake wireless access, I mean, we've been talking about FWA for several years now, but it's still to show in how it contributes to RAN or to Mobile Networks revenue generation in coming years. So could you sort of talk a little bit about the potential when it comes to enterprise 5G and how that sort of trickles down into the RAN market value, if you like. Thank you.\nPekka Lundmark -- President and Chief Executive Officer\nWe are, first of all, strong believers in the potential of the enterprise and campus wireless. It's a market that we have noted that is extremely hard to estimate on a detailed level that how fast that growth will be because it could swing a lot between the extremes. The only thing that is certain that it will grow substantially faster than the carrier, RAN market. It starts from a low level.\nSo we will certainly see years where the market can grow at least 30%, 35%, if not more, while the carrier market most likely over time is in the low single digits. You mentioned fixed wireless access. That is actually a market that now driven by the new 5G-based systems is driving a lot of growth. And that is in addition to passive optical networks is one key reason why our Fixed Networks business is growing so fast.\nRemember, in our model, fixed wireless access is in Network Infrastructure, in Fixed Networks business, it's not in Mobile Networks, even though technically, of course, we are delivering radios there. So we are bullish about the market potential. But unfortunately, I mean, I'm not able to and I don't think anyone is able to detail that how much exactly the growth will be over the coming years.\n", "David Mulholland\nThank you, Fredrik. Ladies and gentlemen, this concludes today's call. If you have any outstanding questions, please do feel free to reach out to the investor relations team. I'd like to remind you that during the call today, we've made a number of forward-looking statements that involve risks and uncertainties.\nActual results may therefore differ materially from the results currently expected. Factors that could cause such differences can be both external as well as internal operating factors. We have identified such risks in the risk factors section of our annual report on Form 20-F, which is available on our investor relations website. With that, thank you very much.\nOperator\n[Operator signoff]\nDuration: 63 minutes\nCall participants:\nDavid Mulholland\nPekka Lundmark -- President and Chief Executive Officer\nMarco Wiren -- Chief Financial Officer\nAndrew Gardiner -- Citi -- Analyst\nSimon Leopold -- Raymond James -- Analyst\nFrank Maao\nAlex Duval -- Goldman Sachs -- Analyst\nPeter Nielsen -- ABG Sundal Collier -- Analyst\nFrancois Bouvignies -- UBS -- Analyst\nArtem Beletski -- SEB -- Analyst\nAlex Peterc -- Societe Generale -- Analyst\nRob Sanders -- Deutsche Bank -- Analyst\nSami Sarkamies -- Nordea Markets -- Analyst\nSandeep Deshpande -- J.P. Morgan -- Analyst\nRichard Kramer -- Arete Research -- Analyst\nFredrik Lithell -- Handelsbanken Markets -- Analyst\nMore NOK analysis\nAll earnings call transcripts" ]

[ "ness yet of retiring LTE, but we are focused on that at some point in time in the coming years. This 5G network is moving at incredible pace, coverage, spectrum and architecture. And we have a lead on all corners of that dialogue against our competition, which positions us incredibly well for future growth across all segments.\nSo delighted with our progress. And the 5G story is not just beginning. I mean, we are into it at T-Mobile. And the growth vectors are starting to shape up around us incredibly well.\nMike Sievert -- President and Chief Executive Officer\nBeautiful. OK. And before we go back to the phones, I know we have some coming in on Twitter. I see a few upfront.\nJanice, did you find somewhat we should be tackling here?\nJanice Kapner -- Chief Communications Officer\nYeah. We have a couple. Let's start with Bill Ho. He's asking for some notable examples of enterprise or medium company wins from T-Mobile for Business.\nI know Callie may have some good things to talk about there. And to your point earlier on our coverage announcement, curious how that's impacting the business broadly both consumer and B2B.\nMike Sievert -- President and Chief Executive Officer\nAnything to double down? I know you just kind of answered some of that.\nCallie Field -- President of Business Group\nRight. I mean, we had did some great work with AutoZone. In General Mills, we spoke. We did an interesting solution using ANS and Edge compute and some smart warehousing, where we built a combination private network and public network.\nWe've been working with a lot of global automakers using both our TIoT capabilities as well as edge solution for vehicle-to-vehicle communication. And then another cool thing in a B because we're seeing a lot of growth in SMB as well. We just announced -- we partnered with Apple to launch the only wireless plan that includes Apple Business Essentials, which is really cool for small businesses to really where they're looking at cost when they're looking at getting more efficient and effective, how they can manage all of their devices at once with an incredible rate plan and an iPhone 13 included. So that was a really big announcement recently.\nMike Sievert -- President and Chief Executive Officer\n", "So lots of exciting new logos, only some of which we say because of agreements with customers. But the other thing that's happening that's really interesting is that we are deepening relationships with enterprise customers across the board. Remember, a couple of years ago, we were kind of winning some accounts along the lines of, \"Hey, if I throw you a few of my lines kind of unofficially, will you help me reprice my AT&T business, and you'll get some of my,\" that's never really spoken, but you can see the RFPs were sort of designed for that. And what happens now is some years later, customers are coming back and saying, actually, I'd like you to bid for the whole kit and caboodle now.\nAnd so this potential to deepen with customers is really happening, and that's a dynamic that's driving our sales. So hopefully, Roger and her and Bill, that answer some of your questions about TFP. So Janice, get ready for the next one. I'll go back to the phone while we do that.\nSo operator?\nOperator\nYes. We'll go next to Jonathan Chaplin with New Street.\nJonathan Chaplin -- New Street Research -- Analyst\nThanks, guys. Two follow-ups on prior questions actually. So, Neville, I'd love to just the context you gave around fixed wireless broadband and the capability for the network was great. But I'm wondering if you can address what you think you can serve in terms of capacity, the capacity that you've got in terms of the total number of subs you could put on the network.\nI know you said in the past that 7 million to 8 million that you expect in 2025 isn't the limit. So I would love to know what the limit is. And then just to stick with the theme on enterprise for a second. I'm wondering if you guys could give us a sense of how you're progressing toward that 20% share where you are at this point.\nAnd Mike, you said that you -- it's too soon to p" ]

[ "e quarterly fluctuations in gross margin. Despite these short-term fluctuations, our long-term trajectory toward the 47% gross margins of our target model remains intact. And as you can see from our outlook, we expect a sequential increase in gross margin for the current quarter.\nTurning to market level details, demand for foundry and logic probe cards was extremely strong in the fourth quarter. The strength is the result of new design releases in the fabless foundry ecosystem that ramped aggressively in both high performance compute and mobile applications, with continued strong growth associated with 5G handset launches. In the first quarter, these specific ramps are mostly behind us and we do expect a slight sequential decrease in foundry and logic probe cards.\nOn a longer-term basis, driven by 5G and advanced packaging, this market is a major growth opportunity as customers utilize FormFactor's differentiated market-leading products to meet their highly complex test requirements for millimeter-wave RF front ends, next-generation application processors and high power compute processors. In DRAM, we delivered the highest quarterly revenue of 2020 as customers released and ramped new designs in a combination of technology node migrations, 12 gigabit and 16 gigabit product ramps and the beginning of the HBM2 to HBM3 transition.\nAs a reminder, probe cards are a consumable with a specific each chip design, and so demand is generated not just by node migrations but also the release of new chip designs, such as 16 gigabit LPDDR 5. With this strong new design activity in place across our customer base, we expect first quarter and potentially first half DRAM probe card demand to continue at levels comparable to the fourth quarter.\nThe HBM3 transition is especially exciting for FormFactor that's yet another example of industry adoption of advanced packaging with customers stacking up to 16 individual silicon die to meet memory bandwidth and power requirements in high-performance compute applications. In these stack die architectures, the value of testing increases as more die are added to the stack to avoid incorporating bad component die into an otherwise good stack. As a result, as advanced packaging schemes like HBM3 are adopted, we are seeing a substantial growth in test intensity.\n", "On top of that, the technologies required to test these devices are extremely complex and sophisticated. The dimensions of an individual MEMS fabricated probe are comparable to a human hair, they carried power at over an amp of current and signals at tens of gigahertz while lasting millions of contact cycles. Moreover, a typical probe card contains tens of thousands, if not hundreds of thousands, of precisely assembled MEMS probes. This combination of increased test intensity, which expands the number of probe cards required for wafer out and test complexity which widens FormFactor's competitive advantage is characteristic of all types of advanced packaging.\nAs the industry's focus moves to post-fab integration to offset the slowing of front-end Moore's Law wafer test and probe cards are taking a prominent role in enabling a variety of advanced packaging schemes like HBM stacking of DRAM die and heterogeneous integration of chiplets, and are at least partially responsible for the double-digit growth we delivered in both 2019 and 2020. These secular growth trends support our investments in capacity with increased capital expenditures, including our 2020 purchase of a new 90,000 square foot factory in Livermore, which is scheduled to begin revenue shipments in the second half of this year.\nTurning to M&A, following two acquisitions in the second half of last year, our team is focused on integrating our additions. The Advantest's probe card assets we acquired in July are now fully integrated into our probe card operations, and we have launched an internal program to incorporate several technology subcomponents into FormFactor's probe card roadmap. We are also making progress introducing the acquired mainstream NAND flash probe card products into the" ]

[ "ff to a great start this year. And while it's too early in the year to measure pavement technologies, we believe we'll see good growth as countries globally expand their paving operations.\nThe outlook for performance materials is less certain. Forecast for 2022 auto production are conservative due to the ongoing microchip shortage and other auto supply chain issues. Q4 2021's chip availability improved from Q3, but we're not confident the sustainable rate of supply has been achieved. For 2022, the lower end of our range assumes continued supply constraints in the first half of the year, followed by some recovery in the second half.\nTo the extent industry dynamics improve and recover sooner, we would end up at the higher end of our range. We will continue to invest organically as we bring online our new polyol capability in DeRidder and an alternate fatty acid stream in Crossett. Additionally, we are working on several debottlenecking projects at our performance materials facilities. We are also in the execution phase of our SAP S/4HANA implementation.\nCapex will be elevated somewhat from recent levels, but we consider these investments well worth the effort as they exceed our investment return expectations and will help us sustain our highly profitable growth. Finally, we will continue to return capital to shareholders as we see opportunities to buy back shares in what we consider attractive levels. I'm confident our team will deliver a strong performance this year. Before we go to Q&A, I would like to take a moment to thank Mike Smith for her service to Ingevity.\nThis will be his last earnings call. And going forward, you will hear from Rich and Steve. Mike, while we know we will still see you around, we thank you, and we wish you the best of luck. In closing, I appreciate ongoing hard work and efforts of all of our employees worldwide.\nWe hope you share our enthusiasm for Ingevity. And at this point, we'll take your questions.\nQuestions & Answers:\nOperator\n[Operator instructions] The first question today comes from Vincent Anderson of Stifel. Vincent, please go ahead. Your line is open.\nVincent Anderson -- Stifel Financial Corp. -- Analyst\nGood morning. Can you hear me, OK?\nMary Hall -- Executive Vice President and Chief Financial Officer\nYou broke up just a little bit. Go ahead.\nVincent Anderson -- Stifel Financial Corp. -- Analyst\n", "I'll give it a -- I'll give it a shot. Just yell at me if it keeps breaking up. Can you speak to the revenue mix in engineered polymers this quarter between monomer, raw material pass-through, and derivatives and where that could trend over the course of 2022 as it relates kind of to your margin expectations on that business?\nMike Smith -- President of Performance Chemicals\nYeah. Thanks. So in general, our mix for derivatives versus monomers, we expect that to continue to be more toward derivatives. From a volume standpoint, that mix didn't change too much in 2021 as all areas of the engineered polymers business grew quite significantly.\nBut as we described over time, our focus and working closely with our customers is to continue to drive the derivative sales in both polyols and thermoplastics. And as evidence of that, of course, we're very much looking forward to getting the start-up of our new polyol facility in DeRidder here in the middle of this year.\nVincent Anderson -- Stifel Financial Corp. -- Analyst\nOK. Thank you. And can you -- just staying on performance chemicals, could you discuss your CTO costs and importantly your availability heading into 2022 on the portion of your supply that is not covered under long-term agreements?\nMike Smith -- President of Performance Chemicals\nYes. So we had anticipated, and we're seeing raw material cost inflation on CTO. In terms of availability, we anticipate being able to get what we planned for. That's what we entered the year believing in our outlook continues to demonstrate that.\nJohn Fortson -- President and Chief Executive Officer\nPut another way, Vincent, I mean, out of, call it, 320,000 tons of stuff that we're using, it's pretty much eve" ]

[ "ou.\nOperator\nNext question is from Sterling Auty with J.P. Morgan.\nSterling Auty -- J.P. Morgan -- Analyst\nYeah. Thanks. Hi, guys. So were you successful in rolling out all of the countries that you wanted to for Zoom Phone during calendar 2020? What's the plan for 2021? And can you eliminate the need for the bring-your-own-carrier program that you launched with?\nEric Yuan -- Founder and Chief Executive Officer\nYeah. So first of all, if you look at our international penetration, it consists of 42 countries if you look at our Zoom Phone and the service. I think look at our phone -- the growth, 40% are from the up-market. 60% are from SMB market.\nIf you talk about up-market, I think more and more opportunities will come from international customers. The reason why, when we started, right, we lead the folks on North American market since last calendar year. As we started rolling out to more and more international customers, I think the international penetration, I think will be the catalyst for our future Zoom Phone growth.\nSterling Auty -- J.P. Morgan -- Analyst\nGot it. Thank you.\nOperator\nOur next question is from Meta Marshall with Morgan Stanley.\nMeta Marshall -- Morgan Stanley -- Analyst\nGreat. Thanks. As you think about leveraging your platform, digital events is something you talked about at Zoomtopia with OnZoom as another kind of natural adjacency. Any traction here to call out on OnZoom? Or just how do you think about kind of finding other use cases or platforms for video usage?\nEric Yuan -- Founder and Chief Executive Officer\nYeah. Kelly, feel free to chime in. Actually, in terms of OnZoom, we launched OnZoom on-prem last October at our Zoom annual user conference. But now, it's in the beta stage now, right? And based on our talk with those early adopters and also based on the progress, we think OnZoom is not only designed for the normal workers for [Inaudible] consumer, right, to learn yoga class.\n", "And also another part of OnZoom is about the overall business customer -- enterprise customer online virtual event. Like this year at Zoomtopia, we hold that event completely on Zoom platform. Essentially, OnZoom two parts: consumer-driven OnZoom to allow the knowledge workers to make a living, to sell a yoga class, teaching anything online over Zoom platform; and also, we are beginning to expand our webinar platform to be an end-to-end corporate virtual event platform. That market also has huge growth opportunity.\nMeta Marshall -- Morgan Stanley -- Analyst\nGreat. Thanks, guys.\nEric Yuan -- Founder and Chief Executive Officer\nThank you.\nOperator\nOur next question is from Philip Winslow with Wells Fargo.\nPhilip Winslow -- Wells Fargo Securities -- Analyst\nHey, guys. Thanks for taking my question. I also just wanted to dig in on Zoom Phone. One of the things that jumped out at me was the 18 customers with more than 10,000 seats.\nI was wondering, is there any sort of, I guess, cohort so to speak, what you're seeing here? Are these larger customers from a particular industry? Is their workforce more distributed than others? I mean, anything that you comment on and sort of how -- sort of what the type of customer profile is for Zoom Phone, especially with those bigger transactions and how you think about that going forward.\nKelly Steckelberg -- Chief Financial Officer\nI think the great news, Phil, is that it's actually spread across all industries. You saw those names that we talked about, right? We had a university, we had an entertainment organization and a technology company. And I think the success of Zoom Phone from the very beginning is it's really appealed well to small and large enterprises alike and across all industries. And the reason that we win, right, is based on, as Eric mentioned, the trust that they already have in us, as well as the usability and the total cost of ownership, which plays well across all industries.\nEric Yuan -- Founder and Chief Executive Officer\nYes.\nPhilip Winslow -- Wells Fargo Securities -- Analyst\nGot it. And then just a follow-up on that, theoretically, as companies are ramping up to " ]

[ "vanced logic nodes and those advanced foundry nodes; when those start really picking up, we get the benefits of that growth.\nSo, we're continuing to build on our leadership positions for slurry, and we saw that strength this quarter. We also talked about, in our prepared remarks, that China was very strong. You would expect Korea to be strong with stronger memory backdrop. We also talked about growth in China, which is mostly logic/foundry and what we consider legacy. We have very strong positions in China, and we see continued growth ahead in the next several quarters. And, of course, China is a very important geography for the semiconductor industry, including us.\nToshiya Hari -- Goldman Sachs -- Analyst\nGot it. Super helpful. And then as a quick follow-up, on the Electronic Chemicals business, I was a little surprised by how muted growth was in the segment. Yes. Your biggest customer in North America, they've got great momentum across, I guess, primarily the PC business and potentially in servers going forward. You've spoken to weakness in lagging edge on prior calls as a headwind. And if anything, the lagging edge seems to be recovering pretty nicely across the automotive and industrial end markets. So, curious what the puts and takes were in the electronic chemicals business in December. And I guess, more importantly, what's the outlook into March and June?\nDavid H. Li -- President and Chief Executive Officer\nYes. Thanks, Toshiya. I think you've got a good handle on that business. Obviously, the dynamics are a bit different than slurries and pads, where we sell to a number of different customers. This is a solid profitable business, but it's very regional. And our participation -- the customer concentration and where we participate is much more concentrated. So, it's U.S., Europe, and Southeast Asia. So, the quarter -- on a quarterly basis, there will be more puts and takes just by the order patterns of specific customers.\n", "Also, just by where we participate, we're not going to get as much lift from a memory sort of strength or increase in utilization. I think longer term, we continue to make improvements in the business that we think are going to differentiate ourselves -- further differentiate ourselves from our competitors from a quality and supply chain perspective. And we do expect, although we don't give specific guidance for the next quarter, we would expect it to grow year-over-year. So, it's got some different dynamics quarter-by-quarter. It's going to have some puts and takes, but it's really much more concentrated, much more regional. But we think it's going to grow year-over-year.\nToshiya Hari -- Goldman Sachs -- Analyst\nThanks, Dave. Congrats again.\nDavid H. Li -- President and Chief Executive Officer\nThanks.\nColleen E. Mumford -- Vice President, Communications and Marketing\nThanks, Toshiya.\nOperator\nOur next question comes from Mike Harrison from Seaport Global Securities.\nMike Harrison -- Seaport Global Securities -- Analyst\nHi. Good morning, everyone. I was wondering if you can give some additional details on the new business wins that you referred to in the CMP pads business. Is this more of an expansion of positions with existing customers or are you winning new customers? Maybe just give us some thoughts there?\nDavid H. Li -- President and Chief Executive Officer\nThanks, Mike. And again, this is kind of a continuation of the narrative we've been talking about for a while, which is we're really excited about this business and we continue to see wins. We talked about in the prepared remarks, customer wins in leading foundry and leading memory applications. And so, what we saw this quarter and what we see going forward is the ramp-up of those wins. Sometimes, they take time, especially if they're at the leading edge.\nBut when we think about and we look at the pipeline of opportunities, it's really exciting because we're seeing strength and really, really compelling interest from customers across different segments. So, I think the recent wins are with customers that are both in foundry and memory, the" ]

[ "ngs hopefully get filled up, as we begin to see people returning, that will be an opportunity for us.\nDave Schaeffer -- Founder and Chief Executive Officer\nAnd then let me touch on your NetCentric growth by region. The biggest trend that we have experienced over the past couple of years is an acceleration in the internationalization of the Internet. As the rest of the world has caught up to the U.S. in terms of Internet usage, they're not there yet, but they are growing rapidly. We are seeing an increase in demand from those international markets. That's why our footprint has expanded so aggressively.\nNow with regard to the pandemic, particularly in Europe, in the first wave of lockdown, we saw a request by governments for degradation of streaming bit-rates. In this wave of lockdowns, it's a bit different. We haven't seen that type of intentional quality degradation. Secondly, the lockdowns have taken a different form. And they are typically now, not in the form of a lockdown, but rather a extended curfew, which does mean that, people are home earlier in the evening. And as we commented earlier, post-pandemic, we have seen peak usage periods broaden out quite a bit. So pre-pandemic, 7:00 PM to 10:00 PM was peak usage. Post pandemic, we've seen that went ago from 3 o'clock in afternoon local time to nearly midnight. And that broadening of the base is part of what's contributing to the increase in bit volume growth.\nMichael Funk -- Bank of America Merryll Lynch -- Analyst\nI guess I asked a different way. Dave. I mean, how do you anticipate traffic being impacted in 2021, as people return to work? Maybe moving back that peak rate to more of a normal time zone. And then this can't move back into school, and streaming other classroom activity. How do you expect that to impact the traffic growth in '21?\nDave Schaeffer -- Founder and Chief Executive Officer\nYeah. The user generated video is de minimis compared to professional video. So the big quality is our and the upstream capabilities of their broadband connections tend to be the limiting factor. I do think that the transition to over the top versus linear was accelerated by the pandemic, but we will not revert back. I also think that many customers are now electing to pick two, three, or even four concurrent streaming packages and I think the growth in traffic will continue at historic rate.\n", "Sean Wallace -- Chief Financial Officer\nYeah, I'd add a little bit. In March -- a little color in March, a lot of the record days, we suffered during the week day, which reflected Dave's point about work from home environment and that whole change. As we've been seeing in November, December and January, the record days are around the weekend, which reflect people watching more TV and it is clearly the number of streaming services, Disney Plus is something at 95 million, some suggest this is going to triple, this is clearly professional video, it is not people work from home is increasing the traffic on our network. So we're very encouraged by being over the top growth not people work from home as much as driving the traffic on our network.\nMichael Funk -- Bank of America Merryll Lynch -- Analyst\nYeah, that's great color. Thank you, Dave and Sean.\nDave Schaeffer -- Founder and Chief Executive Officer\nThanks, Michael.\nOperator\nYour next question comes from the line of Nick Del Deo with MoffettNathanson.\nMichaels Aurora -- MoffettNathanson -- Analyst\nHey, this is Michaels Aurora on for Nick, thanks for taking my question. Could you give us some more detail regarding what you're seeing among corporate customers from a speed upgrade perspective? You noted that you're 1 gig products have passed your 100 meg product in 2020. Could you share with us the rate at which customers are upgrading, whether they're signing contract extensions when they upgrade and so on?\nDave Schaeffer -- Founder and Chief Executive Officer\nYeah, sure, Michael. So a couple of points. First of all, the average new contract for corporate customers is three years, that's up substantially from, say five years ago. So they " ]

[ " long-term financial targets by investing for growth while delivering breakthrough innovation. The past 18 to 24 months have no doubt accelerated the digital revolution we are all experiencing as technology is permanently changing nearly every aspect of our lives.\nThe technology we build is powering the modern secure infrastructure that sits at the heart of this revolution, and Cisco is well-positioned to capture the opportunities ahead. Our customers want digital and cloud-enabled solutions that allow them to move with greater speed, agility, and efficiency. We're already seeing the positive impact of our investments to drive accelerated innovation across high-growth areas, including hybrid cloud, web scale, cloud security, 5G, WiFi 6, 400 gig, and full-stack observability. A key trend in front of us is enabling employees to work from anywhere, and this is much broader than meetings.\nIt's about the holistic capabilities to support a highly distributed workforce that require new infrastructure architectures, observability and security. Many companies are in the process of defining their hybrid work strategy, which will be based on the technology we build across our networking, security and collaboration portfolios. We are also leading the way with new innovation, including our recently expanded Webex portfolio, purpose-built for inclusive experiences across hybrid work, workspaces, and events. Now I'd like to discuss our Q1 performance.\nBuilding on the momentum from last quarter, I'm proud to say we achieved another strong quarter in line with our expectations despite supply constraints, which I will discuss shortly. We delivered balanced revenue and non-GAAP EPS growth with healthy margins driven by continued economic recovery, strong execution, and exceptional demand for our products. We also generated a strong quarter of double-digit growth in ARR and RPO, reflecting the ongoing success of our transformation. We have continued to operate successfully in a very dynamic environment, staying nimble in order to navigate the evolving conditions related to the Delta variant and global component shortages.\nNow let me discuss the performance of our customer market segments. Q1 marks the third consecutive quarter of accelerating order momentum with broad-based strength across our business. Every geographic region in three of the four customer markets grew product orders at 30% or higher. We again experienced the strongest demand in over a decade as our customers increase their investments in digital transformation.\n", "In our enterprise and commercial businesses, we achieved our fourth consecutive quarter of accelerating order growth. We also saw solid growth in public sector. Our service provider segment delivered its highest level of order growth in over five years with 66% growth as these customers address their growing bandwidth requirements. In our web scale business, our robust momentum continues.\nOur performance was once again a record with order growth of over 200%. That's 120% growth on a trailing four-quarter basis. We are very pleased with the early traction of our 400-gig solutions, Cisco 8000 platform, Silicon One portfolio and rapid growth in our Acacia portfolio of optical networking products. It's clear we are expanding our footprint as our cloud growth rate is outpacing our peers.\nWe continue to invest in web scale innovations with differentiated customer value, launching this quarter the latest member of the Silicon One family, the 19.2 terabit P100 routing device, the 11th chip in the Silicon One family. In addition, Acacia marked a major milestone by unveiling the industry's first pluggable module capable of delivering 1.2 terabit capacity on a single wavelength. Our product revenue was up nearly $1 billion year over year, demonstrating the competitive advantages of our scale and reach, as well as our ongoing momentum. We saw broad-based demand across the majority of our product portfolio.\nIn addition, we continue to see steady progress in our business model transition. Our focus on subscriptions allows us to d" ]

[ "As he fixes a broken sliding glass door at an apartment in Anaheim, California, Eduardo Gutierrez worries about his parents in Mexico. Eduardo Gutierrez can't send money back to his parents in Mexico due to rising costs and less work. He can no longer afford to send the $200 to $300 a month he had been sending back home to support his ailing father. \"I kind of feel bad that I can't help my parents,\" said Gutierrez, a legal immigrant who has worked in the United States for 20 years. \"I try. But I can't these days, and it's a tough situation.\" Gutierrez said he earns $18.50 an hour as a glazier, installer and fixer of glass in all shapes and sizes. But with the U.S. economy sagging, his hours have shrunk, even as his gas and grocery bills have skyrocketed along with other expenses. He's struggling just to support his wife and three children. Watch bad times in the U.S. felt in Mexico » Bank of Mexico, Mexico's equivalent to the Federal Reserve, says stories like these are becoming more common. Deceleration in the U.S. construction industry resulted in $100 million less in \"remittances\" -- money from workers in the U.S. to their relatives in Mexico -- in January this year, the most recent available stats. The overall figure went from $1.7 billion in January 2007 to $1.6 billion this January, according to Bank of Mexico. The slowdown in such money has been a consistent theme over the last year. The World Bank says remittances received by people in Mexico nearly ground to a halt in 2007, growing at a rate of 1.4 percent, compared with more than 20 percent annual growth from 2002 to 2006. \"The slowdown in Mexico is partly due to the weak job market in the United States, especially in the construction sector,\" the World Bank says on its Web site. A poll, released Wednesday, of 5,000 Latin American adults living in the United States found that only 50 percent of respondents were still sending money on a regular basis to loved ones, down from 73 percent in a similar poll conducted in 2006. The poll was conducted in February by the Inter-American Development Bank's Multilateral Investment Fund. See the rise of immigrants from Latin America » What does that mean to families in Mexico counting on the payments to survive? ", "CNN caught up with Gutierrez's father in Tejaro, Mexico, a hardscrabble farming town of about 5,000 people. A gray-bearded man in a wide-brimmed hat, 77-year-old Camilo Izquierdo was feeding white goats that poked their heads through a makeshift fence. He and his wife have 13 children, seven of whom have moved to the United States for work, including Eduardo Gutierrez. The dad used the money from his oldest son to supplement his farming income and to help pay for diabetes medication. \"He says things are getting too expensive over there,\" the father said. \"He says things are worse there in California than over here.\" His livestock has always been his lifeline. Izquierdo used to have 140 goats, but he began selling off his livestock to make ends meet. A drought made feed more expensive, and now he's down to just 40 goats, with little money left for his medicine. \"I am sick and have been sick for quite some time. The medicine keeps getting more expensive. I just don't know what to do anymore.\" Back in California, Eduardo Gutierrez says that in addition to shrinking hours and rising food costs, gas prices are burning up his paycheck as he drives his truck to jobs spread out over hundreds of miles in Southern California. He estimates that just driving to and from the jobs is costing him $400 to $500 a month in gas. Gas calculator: How much do you need to work to pay for your gas? » \"I've been here over 20 years, and I saw the recession back in the '90s,\" Gutierrez said." ]

[ "ve much less exposure to China, which is very helpful, but these weren't issues that were related to demand. And the demand is there.\nThe demand was there and it still is, and we need to go execute on that. But some of the early lockdowns in the ripple effects there in supply chain added a little bit of a nip/tuck to the quarter.\nHarsh Kumar -- Piper Sandler -- Analyst\nUnderstood, Liam. And maybe for my follow-up question, Liam, one for you. So the 5G handsets went through a rapid period of growth and sort of feature addition and node and band edition, are you still seeing very good content increase in the flagship mobile phones even at this point, like the ones that are coming up, maybe you can talk about. And maybe talk to us, Liam, about some of the things that are driving that.\nIt's -- are the bands still being added? Or is it things like wireless DRX. Just any color, we would appreciate that.\nLiam Griffin -- Chairman, Chief Executive Officer, and President\nYeah. I mean, there's a great deal of enhancements that come through the cycle with the leading players and we have to back that up with core technology. And if you look at the capex that we've been delivering. And one of the themes that we've been talking a lot about is the level of customization and basically cracking those technologies in-house.\nYou know that we're a rare breed that manufacturers end-to-end from high-end bulk acoustic wave, temperature-compensated SAW filtering, in-house gallium arsenide, in-house customized assembly, and test, all those vectors come together and allow us to do very unique things customer by customer. So we're able to go after a much, much broader set of accounts when we have that level of customization and technology know-how. So -- and that's one of the reasons why the mid- to high tier really appreciate Skyworks because we can do a lot of good work with those partners and really help lift their business with our teams beneath them under the wings here, supplying the right kinds of technology. So it's a good partnership there for both sides.\nOperator\nNext question comes from Blayne Curtis of Barclays. Please go ahead.\nBlayne Curtis -- Barclays -- Analyst\n", "Hey, thanks for taking my question. I just want to ask on the September guidance. Two things: one, you said broad markets would still be up double digits. I guess it doesn't give me an idea of which direction it is sequentially.\nSo you had the issues -- I think you talked about supply chain in June, what's the outlook for broad markets in September?\nKris Sennesael -- Chief Financial Officer\nSo as I just said, September will still be up double-digit year over year. It will actually be slightly down on a sequential basis. You have to keep in mind in broad markets that we continue to see very strong demand. In some cases, the demand is higher than the supply.\nThat's the case in our audio business. That's the case in some of the automotive and infrastructure business that we have. In addition to that, we also continue to see many of our customers still having kitting issues. They don't have the complete bond.\nAs a result of that, they don't need to scour those parts for now. But assuming that the chip shortage will get resolved over time, they will have to catch up, and that will then further fuel the growth for Skyworks content as well.\nBlayne Curtis -- Barclays -- Analyst\nOK. And then maybe just some comments on your own supply chain. I mean the fact that you're able to build that much inventory. Can you just talk about the constraints if any, that you're still seeing on your business from a foundry and back-end perspective?\nKris Sennesael -- Chief Financial Officer\nYeah. As I just said, in the vast majority of our business, we are able to supply to what our customers want, especially as it relates to the products and the vast majority of the products that we do in-house, we have proactively invested in capacity and technology in our gallium arsenide fabs and our filter operation and our back-end operation. Where we struggle is on some of the smaller businesses that we have tha" ]

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

[ "U.S. troops or contractors who commit \"major and premeditated murders\" in Iraq while off-duty and outside U.S. facilities would fall under Iraqi jurisdiction, according to a copy of a draft U.S.-Iraq agreement obtained by CNN. Shiite demonstrators protest a proposed U.S.-Iraqi security pact Saturday in Baghdad. All other crimes -- including murders committed inside U.S. facilities or by on-duty forces -- would fall under American jurisdiction, according to the draft, which would govern U.S. troops' presence in Iraq. The issue of whether U.S. troops would remain immune from Iraqi prosecution has been a sticky one for negotiators crafting the Status of Forces Agreement draft, which Iraqi lawmakers are reviewing. The United States had preferred its troops and contractors retain immunity. The draft also calls for U.S. combat troops to be out of Iraqi cities by July 30, 2009, and out of the country entirely by December 31, 2011. The agreement allows for an earlier withdrawal or an extension of the U.S. forces' stay in Iraq, by agreement of both parties. It also allows the Iraqi government to \"request from the United States government to leave certain forces for training and for support purposes for the Iraqi forces.\" The governments have been trying to get a deal before December 31, when a U.N. mandate authorizing the U.S. troop presence in Iraq expires. Iraq's ruling Shiite parliamentary bloc said Sunday it needs more time before it can approve the draft. The United Iraqi Alliance bloc found several \"points\" in the draft that \"need more time for discussion, dialogue and amendments [to] some of its articles,\" according to the Supreme Islamic Council of Iraq, the most powerful party in the bloc. It was unclear what specific \"points\" the parliamentary bloc was questioning. Thousands of people marched in central Baghdad on Saturday to protest the draft U.S.-Iraqi security agreement. The political party of Iraqi cleric Muqtada al-Sadr called for the rally. Watch marchers protest the agreement » Baghdad had sought the power to arrest and try Americans accused of crimes that are not related to official military operations, plus jurisdiction over troops and contractors who commit grave mistakes in the course of their duties. The United Iraqi Alliance on Sunday night discussed the draft, which was presented by Iraqi Prime Minister Nuri al-Maliki, whose Dawa Party is also a member of the ruling bloc. Iraq's Political Council for National Security needs to approve the draft before al-Maliki sends it to his cabinet. ", "The council includes the leaders of various political blocs -- including the United Iraqi Alliance -- as well as Iraq's president, prime minister, vice presidents, and speaker of parliament. If the cabinet passes the draft by a two-thirds majority, al-Maliki will submit it to the Iraqi parliament for approval. A senior Bush administration official said last week that the U.S. is examining \"contingencies\" in case the Iraqi government is unable to sell the status-of-forces deal to the country's various factions. If Iraq does not approve the deal, fallback options include \"a new U.N. Security Council resolution legally authorizing the extension of the U.S. footprint\" or an \"informal agreement between the United States and the Iraqis,\" the official told CNN last week. The official spoke on condition of anonymity because of the sensitivity of the discussions. Other points covered in the draft agreement include Iraqi ownership of \"all the buildings, facilities and structures that cannot be transported and are connected to the ground\" and used by American forces. Such facilities will be returned to Iraq when the agreement expires, it says. Further, the agreement requires the United States to immediately return to Iraq any \"historic or cultural site\" it discovers at facilities it is using. The agreement allows the United States to use whatever defensive systems it deems necessary in areas under its control. Yet it bars \"systems of weapons of mass destruction (chemical, nuclear, radiological, biological weapons and waste related to these weapons).\" The United States is to transfer control of Iraqi airspace to Iraq when the agreement" ]

[ "lth businesses and even greater growth in earnings.\nAs expected, GARDASIL sales were particularly robust as we benefited from a sharp improvement in manufacturing output and availability of more doses to help address ongoing strong underlying demand. We are confident that the momentum we are seeing will continue through the end of the year, setting us up for continued growth over the next several years. We remain focused on our efforts to transform the way we work by evolving our operating model to be leaner, nimbler and more digitally enabled. My leadership team is fully aligned behind the need for Merck to work with more speed, urgency and agility across all aspects of our business.\nWe must stay ahead of the evolving external environment to ensure we are able to make the significant investments required to deliver future innovations that will address unmet medical needs across the globe. In doing so, we aim to deliver important medicines and vaccines to patients while continuing to drive long-term sustainable growth and value creation for all of our stakeholders. Finally, I want to highlight the recent publication of Merck's Environmental, Social and Governance Progress Report. This year's report highlights important updates on metrics and goals around our four ESG priority areas, which include access to health; our employees, including their health and safety as well as engagement and diversity; environmental sustainability and ethics and values.\nThese ESG efforts are grounded in the core values that have always guided our mission and support our business strategy. We look forward to providing ongoing updates on these important efforts. With that, I will pass it to Frank to review the details behind our Human Health performance.\nFrank Clyburn -- President, Human Health\nThanks, Rob. Good morning. As Rob highlighted, the momentum in our Human Health business continued in the third quarter, and we achieved 17% growth, excluding the impact of foreign exchange. We have continued to invest with urgency in patient activation programs that improve patient awareness and encourage more normal levels of physician office visits, oncology screens and vaccination rates.\nThese actions, while ended benefiting patient health, also meaningfully benefited our largely physician-administered portfolio in the quarter. In the United States, we are encouraged that wellness visits and surgical procedures remain at mostly normal levels. In oncology, while screening rates and diagnosis continue to improve, they are unfortunately still below pre-coated levels, and this is impacting new patient starts. Outside of the United States, our business performance remains strong despite lingering impacts from the pandemic in certain markets.\n", "Now turning to the third quarter performance of our key brands. My comments will be on an exchange basis. In oncology, KEYTRUDA sales grew 21% to $4.5 billion, reflecting continued robust global demand. In the United States, KEYTRUDA continues to demonstrate durable momentum across all key tumors, including growth from our recent launches such as KEYNOTE-522 in neoadjuvant adjuvant triple-negative breast cancer.\nKEYTRUDA is continuing to extend its very strong overall IO class leadership, improving new and total patient market share. KEYTRUDA continues to maintain its leadership position in lung cancer, capturing eight out of 10 eligible new patients despite continued competition. Outside of lung, key tumors contributing to growth include renal cell carcinoma, triple-negative breast, MSI high, esophageal and head and neck. We are also excited by the recent approval and upcoming launch of KEYNOTE-826, which is the first anti-PD-1 combination approved as a first-line treatment of cervical cancer.\nOutside of United States, KEYTRUDA growth continues to be driven by lung cancer indications and the ongoing launches in head and neck and renal cell carcinoma. We are continuing to see the opportunity to expand our reach into earlier lines of therapy materialize. We are very excited about the potential upcoming adjuvant launch" ]

[ " results we have seen in our 30-year history.\nUCT ended 2020 with a record total revenue of $1.4 billion, record operating margin of 11.3% and record EPS of $2.80. While significantly outgrowing the overall WFE market by 11%, to reach these extraordinary milestones in a year for all the challenges, we continuously adjusted to the changing work environment while staying focused on meeting customer demand and delivering strong return to shareholders. The fourth quarter benefited from ongoing strength in foundry and logic as well as increased demand in memory as customers plan for expansion and equipment investment in 2021 and beyond. Both our product and service divisions saw increased engagement across all segments of the market, resulting in another quarter of growth and improved operating leverage. UCT remains solidly on track to outpace the accelerated growth of our served markets again in 2021.\nTechnology advancements within our data-driven economy continue to fundamentally change how we live and work. This digital transformation is accelerating the adoption of semiconductor growth drivers such as artificial intelligence, high-performance computing, IoT and 5G. Capital intensity at the leading edge is increasing to support a more diverse set of end used markets which provides confidence for strong multi-year WFE demand. Our business is well balanced and both our product and service businesses have broad exposure across all device types. This bodes well for UCT as we continue to engage in the early stages of customers' technology roadmaps.\nA key component to UCT delivering on its long-term growth strategy is the acquisition of Hamlet. The pre-close and integration planning process is going very smoothly and we are excited to begin operating as one company after closing likely early in the second quarter. Adding Hamlet to our growing suite of vertical capabilities will support our customer partnerships with a significantly broader higher value, higher margin portfolio of market-leading product solutions. You will recall that Hamlet's components are used primarily within our current gas panel product line as well as for gas distribution throughout semiconductor tools.\nIn addition, gas delivery is a significant element of the sub-fab infrastructure within chip making facilities, providing an additional platform for growth. By leveraging UCT's solid customer relationships and global operational footprint, we see a sizable opportunity to grow Hamlet's 5% share of a $2 billion market.\n", "UCT's new facility in Malaysia remains on track to begin initial production in the third quarter this year. This state-of-the-art facility will enable us to better serve and bring value to our local and global customer base. The facility enables us to provide additional capacity ensuring business continuity to meet ongoing demand.\nThere has never been a better and more opportune time to be a manufacturing leader in the semiconductor industry. Our customers and their customers are well positioned at the forefront of this technology renaissance and we see our existing partnerships expanding with them as they hasten to advance their technology roadmaps.\nOur comprehensive portfolio of products and service offerings together with our strong fiscal discipline and resilient business model will drive continuous long-term performance and profitability with the goal of returning even more value to our shareholders. Our guidance for the first quarter reflect an increase in business across our entire customer base. Industry sentiment backed by our internal market analysis project momentum continuing through 2021.\nBefore handing the call over to Sheri, I want to again thank our employees and our suppliers for their incredibly hard work this past year and we look forward to again outperforming the markets we serve in 2021.\nAnd with that, I'll turn the call over to Sheri to review our financial performance.\nSheri Savage -- Chief Financial Officer\nThanks, Jim, and good afternoon everyone. Thanks for joining us. In today's discussion, I will be referring to non" ]

[ "ates for us, too. We hope to file the application with the China Securities Regulatory Commission by the end of June.\nThere's a lot to accomplish to achieve that goal, and it will be a busy four months for us. OK. This concludes the financial review. I'll now turn the call over to Dr.\nMorris Young for a review of our business. Morris?\nMorris Young -- Founder and Chief Executive Office\nThank you, Gary, and good afternoon, everybody. 2020 was a year of solid achievement for AXT, capped off by the growth in Q4, which is typically a seasonally down quarter. We completed the relocation of our gallium arsenide manufacturing, elevated our business and manufacturing processes to meet tier one standards, and expanded capacity in response to increasing demand. Now, with the gathering momentum of 5G and its related technologies, new applications emerging in healthcare and consumer devices, and the technology progression and data center connectivity, we believe AXT is in a strong, competitive position to lead our industry and enable many of the defining trends of the coming decades.\nAnd we are ready. In fact, we don't often make fiscal-year projections, but I will give you a few today. First, in 2021, we expect to bring eight-inch gallium arsenide and six-inch indium phosphide to market. We expect to exceed that elusive $30 million revenue quarter-per-quarter mark.\nWe expect to ramp up production with multiple tier one companies. And finally, we're excited to successfully move AXT toward a 2022 listing on the STAR Market in China. We believe this year will be transformative for AXT, and in turn, for our employees, our customers, and our shareholders. While we said it before, I am truly excited to report to you on our progress.\nSo let's now get started with indium phosphide. Q4 of 2020 was a strong -- second strongest revenue quarter for our indium phosphide portfolio in the history of AXT. Our results were exceeded only by Q2 2019 when we received a very large order from a single customer, who we believe is building an inventory for expected future demand. In Q4 of 2020, however, our revenue achievement was spread across many customers and money applications.\n", "We believe the current revenue diversity demonstrates the broad and sustainable nature of our growth opportunities in indium phosphide. It was in April of 2019 that we first mentioned 5G revenue on our earnings report. Let's say, a year later, 5G and its closely related power applications are driving significant growth in our indium phosphide revenue. Demand had been particularly strong in China and Taiwan, and we don't see any slowing in 2021, as 5G continues to roll out worldwide.\nWe believe capacity in our industry remains very tight. We have and will continue to run capacity at our Beijing facility to keep pace with customer demand. Scaling quickly and cost it effectively is something AXT is uniquely able to do, and we expect to gain market share because we have the shortest lead time among our primary competitors. In data center connectivity, the ever-expanding number of users, devices, and applications is driving the transition to technology that transports faster, more scalable infrastructures.\nHigh-capacity connectivity will continue to be essential. In fact, many believe that the evolution from 100G to 400G will happen faster than the move to 100G. We are seeing this growth in silicon photonics reflected in our steady, strong demand in data center-related revenue. Moreover, we are pleased with the highly productive customer relationships we are developing in this area of our business, and we are applying the tier one processes we have developed to benefit customer experiences across our portfolio.\nIn 2021, we expect to see the meaningful emergence of additional new applications for indium phosphide in such areas as healthcare monitoring and consumer devices. Money are being innovatively driven by tier one players and showcase the unique properties of indium phosphide. These applications have the potential to represent an entirely new growth area, for which we are well-" ]

[ "xample our new Genie micro scissors increases on the job productivity. Terex Utilities recently introduced a new bigger gear for construction and maintenance of the electric grid and MP continues to develop, implement and rollout digital solutions, such as Connected Dealer Inventory, Telematics and e-commerce.\nFinally we are investing in inorganic opportunities for future growth. We recently completed two actions. First, we acquired a facility in China to localize production to meet increasing demand for our industry-leading mobile crushing and screening products and we are excited about the growth prospects in China. Second, we completed a bolt-on acquisition, purchasing MDS International, which is a well-established business of heavy duty aggregate trommels that broadens our product offerings. While this was not financially significant investment, it demonstrates our progress with inorganic growth, via bolt-on acquisitions, as we previously communicated. Terex is well positioned for growth in 2021 and beyond because we have strong businesses, strong brands and strong market positions. We continue to invest, including a new innovative products, digital capabilities and manufacturing capacity.\nTurning to Slide 6. The AWP and MP segments continue to perform well, allowing us to capture the benefits from the positive market fundamentals that we are seeing. First in Genie, the current market dynamics point to a multi-year replacement cycle for access equipment. The average age of fleet globally is increasing and customers need to replenish their fleets, so the replacement cycle is kicking in. We are beginning to see positive indicators for nonresidential investment as well as continued strong order activity. Before wrapping up my comments regarding Genie, I am pleased that we announced earlier this week that Simon Meester, was named President of Genie. I thoroughly enjoyed working with Simon and the Genie team over the past year. Simon is the right leader for the Genie business.\nTurning to our Utilities business. Demand is strong across its end markets of tree care, rental and investor-owned utilities. In addition, we are experiencing strong growth in our utilities parts and service business.\nNext on Materials Processing. We expect global demand for crushing and screening equipment to continue to grow. Broad-based economic growth, construction activity and aggregates consumption, are the primary market drivers. We are seeing strong markets for the cement mixer, material handling and environmental businesses. In addition, global monetary and fiscal stimulus programs has supported stronger demand in our end markets. Overall, we are seeing robust market conditions around the world for our industry leading products and solutions.\nWith that, let me turn it over to Duffy.\n", "John D. Sheehan -- Senior Vice President, Chief Financial Officer\nThanks John. Turning to Slide 7. Let's look at our second quarter results. Overall revenues of $1 billion were up 50% year-over-year with both of our operating segments revenues up significantly. For the quarter, we recorded an operating profit of $123 million compared to only $7 million in the second quarter of last year. We achieved an operating margin of approximately 12% from disciplined cost control and fulfilling as much customer demand as possible, given the realities of the global supply chain during the quarter.\nThe second quarter operating profit does include $4 million of benefits from the release of a financing receivable reserve and the recording about that receivable related to prior years, offset by a $1 million charge for business impairment and restructuring. Improved gross margins and lower SG&A as a percent to sales allowed Terex to expand operating margin significantly year-over-year. Interest and other expense was approximately $22 million higher than Q2 of last year driven by $26 million of costs in connection with the refinancing of a significant portion of our capital structure, offset by $4 million in interest savings.\nOur second quarter 2021 global effective tax rate was " ]

[ "also able to get higher pricing than typical commodity products, which is also a key part of our strategy. Another example of our rapid release strategy is when we recently announced a notable win with ADT. As 5G is deployed widely operators can free up spectrum by sunsetting old technologies such as 3G or 4G as it turns out.\nHowever, their existing applications such as home security systems that use the 3G technology and that need an upgrade. CellBounce, which is a division of ADT needed a very stable timing solution that will enable the successful 3G to 4G conversion of existing home security panels without expensive truck rolls. To enable this conversion, CellBounce's performance requirements were stringent, but we're able to rapidly optimize our elite platform, Super-TCXO to meet these requirements resulting in a SiTime solution that delivers 10 times better performance than the existing solutions. On the state of the semiconductor business today, I wanted to make a few comments on the industry dynamics and supply chain since that's top of mind for a lot of people.\nThe quartz industry has continued to be disrupted most recently by a fire at a supplier to the quartz industry. This impacted supply chain and manufacturing capacity. This market -- these market dynamics have created opportunities for SiTime because of our responsiveness, we've been able to secure incremental opportunities and wins across a number of new and existing customers. Further on this, our fabulous multi-source supply chain continues to serve as a strategic advantage for SiTime, especially during periods of tightness in the broader supply chain.\nWhile we have seen lead times increase in recent months, we continue to work closely with customers to deliver products in the time that they need. Our suppliers were also the suppliers to the semiconductor industry in general view SiTime's MEMS timing solutions as a growth opportunity that is in fact a net addition to the total available market or the TAM. So basically, our silicon timing solutions are bringing additional TAM to the semiconductor industry as we are replacing non-semiconductor solution quartz. In conclusion, we continue to extend SiTime's leadership in timing, and we remain uniquely positioned to continue to disrupt the market with our ability to offer complete timing solutions.\n", "The timing itself, as I said before is a critical function that is increasingly important as faster connectivity becomes more and more relevant, more and more ubiquitous. Our systems knowledge and having the three product categories in-house uniquely oscillators, clocks, and resonators allows us to better design products for our customers and solve the world's tough timing problems. With that, I'll now turn over the call to Art to discuss our fourth-quarter results in more detail, and provide our outlook for the first quarter of 2021. Art.\nArt Chadwick -- Chief Financial Officer\nGreat. Thanks, Rajesh, and good afternoon everyone. During my review today, I'll discuss the fourth-quarter 2020 financial results and provide some guidance for the first quarter of 2021. I'll focus my discussion on non-GAAP financial results, and refer you to today's press release for a detailed description of our GAAP results as well as a reconciliation of GAAP to non-GAAP results, which for us exclude stock-based compensation and related payroll tax expense.\nSo to begin with, the fourth quarter was a record quarter on multiple fronts. We had strong revenue growth, continued gross margin expansion, and record non-GAAP net income. We increased revenue guidance mid-quarter and actual results exceeded that mid-quarter guidance. Revenue for the quarter was $40.3 million, up 23% sequentially, and up 33% over the same quarter last year.\nRevenue for the full year was $116.2 million, up 38% year over year. To provide some color on end markets, our report sales by market group, as I have in the past. The first is mobile IoT and consumer, which consists primarily of sales of mobile phones, wearable devices, and consumer products. Sales into this se" ]

[ "For all the ballyhoo about Black Friday, the crown jewel in the holiday shopping calendar has been something of a bust for retailers. That's led to a shift in how the day is being handled this season. Historically, nobody outside the retail world was really familiar with the idea behind Black Friday. But sometime in the '90s, it suddenly became the thing to do to camp out overnight the day after Thanksgiving and wait for stores to open with their door-buster deals at 4 a.m. or 5 a.m. But talk about inefficiency. The crowds that waited so long would thin out by 9 a.m., and stores were more like ghost towns the rest of the day. And retailers probably didn't make any money on the stuff they were selling anyway! Then there have been the actual physical dangers of having large crowds of people mill around and then dash like mad to snatch up deals. During Black Friday 2008, a Wal-Mart employee was actually trampled to death by a mob of shoppers in New York. All of these factors have prompted retailers to rethink Black Friday. And in a new development, the deals will be available from right now throughout the remainder of the holiday season. No need to freeze your butt off in a long line overnight! For example, I picked up a laptop at Best Buy for $249 on November 11. It was part of a one-day sale that the electronics retailer held to kick off the holiday shopping season. You can monitor the best deals out there on any number of Web sites dedicated to Black Friday deals. Some of the ones I've checked in the past have included blackfriday.info, gottadeal.com and bfads.net. While we're on the topic of holiday shopping, you'll no doubt be asked to buy extended warranties on some of your purchases. I want to reiterate my annual refrain that they aren't necessary and are really just a waste of your money. Modern electronics seldom fail. In fact, flat-panel LCD and plasma TVs fail at only a 3 percent rate during the first three years of ownership, according to Consumer Reports. Why would anyone buy a warranty when you have a 97 percent chance that your TV will work perfectly for that long? Yet most people have a strange psychology about what they'll throw their money at. The Journal of Consumer Research found that people are more likely to buy a warranty on something they enjoy than on something they don't. ", "So a business owner may not buy a warranty on operational equipment, but he or she will do so on a big-screen TV! The reality is that extended warranties have massive costs and just aren't a good investment. For example, The New York Times found one popular Nikon camera where the warranty was 27 percent of the purchase price. For laptops, a warranty can be up to a third of the sale price. Yet there is a free way to extend a manufacturer's warranty. Many credit card issuers will double the warranty up to one additional year if you use their card to make the purchase. Now that's the Clark Smart approach to spreading some holiday cheer to your gift recipients and your own wallet!" ]

[ "A new type of walk-through security machine will debut at several U.S. airports in the coming days as the Transportation Security Administration tries out the latest in body scanning technology. Privacy experts with the ACLU are concerned the walk-through scanning machine is too invasive. It's called \"millimeter-wave passenger imaging technology,\" and it produces a more detailed picture than the metal detectors in use now at airports to screen for weapons and explosives.. Because it produces such a detailed image, however, technology and privacy experts at the American Civil Liberties Union are not satisfied that the new technology meets privacy standards. In a written statement issued Thursday, Barry Steinhardt of the ACLU said the technology can pick up graphic body images and even medical details like whether a passenger has a colostomy bag. Steinhardt called the screening an \"assault on the essential dignity of passengers that citizens in a free nation should not have to tolerate.\" TSA spokeswoman Elle Howe said privacy will be respected with the new millimeter-wave technique. \"We want to preserve passengers' privacy and make them feel comfortable with trying a technology like this,\" she said. A TSA officer will escort a passenger to the machine for the test, but the person looking at the actual body scans will be at a different location and will not see the passenger, the TSA said. In addition, the scans will have a \"modesty filter\" to blur out faces, and no images will be saved. But the ACLU expressed concern that TSA officers would not be able to resist the temptation to save images of certain people, such as celebrities, and that the plan to blur faces might later be changed. This is how the new scanners work. The passenger steps into a machine where he or she is quickly scanned with radio waves. Those waves reflect off the body to transmit a three-dimensional image of the passenger that looks like a fuzzy photo negative. A TSA officer studies the image on a screen and looks for unusual shapes that might mean a passenger is carrying something suspicious. Passengers who are asked to undergo a second screening can choose a pat-down search or the millimeter-wave test. The TSA says the machines scan a passenger twice, each scan taking less than two seconds. But it takes another minute or two for a screener to review the scans before signaling a passenger to move on. The TSA demonstrated the screening technology at a news conference Wednesday near Washington. Howe said the millimeter wave is harmless and \"can see more than a magnetometer,\" which is the first screening machine airport passengers encounter. ", "\"A magnetometer only picks up metal or weapons, so this could see other materials that might be hidden on the body and it also produces an image\" rather than just a beep, she said. Asked if the millimeter wave could detect an object hidden in a body cavity, she said only that the TSA will learn more about the technology as it's tested at U.S. airports. The TSA has been testing another type of imaging technology called backscatter. This technology also came under some fire because it shows very detailed body images -- which led some critics to call it an electronic strip search. So, the backscatter was altered and blurred to show more of an outline of the body. The TSA will continue to test the backscatter scanners in some airports. TSA officials said they are a long way from deciding whether they'll settle on just one of these imaging technologies. Phoenix Sky Harbor Airport in Phoenix, Arizona, begins using the new machines Thursday -- to be offered as an option for people who are asked to be screened a second time. Los Angeles International Airport in California and John Fitzgerald Kennedy International Airport in New York are also slated to try the machines Britain, Spain, Japan, Australia, Mexico, Thailand and the Netherlands are using the millimeter wave screening. In the United States, some courthouses and jails are trying it. E-mail to a friend" ]

[ "Two of the Rev. Martin Luther King Jr.'s children are suing their brother, accusing him of wrongfully taking money from their parents' estates. Dexter King, left, Bernice King and Martin Luther King III attend a 2006 tribute for their late mother. Bernice King and Martin Luther King III allege that Dexter King took \"substantial funds\" out of Coretta Scott King's estate and \"wrongfully appropriated\" money from their father's estate. The suit, filed Thursday in Fulton County Superior Court, serves as a very public fissure in an iconic family that has always professed unity, particularly as questions have swirled around some of their financial dealings. In a written statement Friday, Dexter King called the suit \"inappropriate and false.\" \"I'm disappointed that our personal family disagreement, as it relates to the family business, has evolved into being handled in a public legal forum,\" he said. \"It is my hope that this inappropriate and false claim by my siblings will be swiftly resolved and we can go about the business of focusing on our parents' tremendous legacy.\" The Rev. Martin Luther King Jr. was assassinated in April 1968 in Memphis, Tennessee, where he was to lead garbage workers on a protest march. King's wife, Coretta Scott King, also devoted her life to the civil rights movement, died in 2006. Attorneys for Bernice King and Martin Luther King III would not say Friday how much money they are accusing Dexter King of taking from their mother's estate. Bernice King is the administrator of that estate. Dexter King, the suit says, controls their father's estate, which is registered as a Georgia corporation. All three children are shareholders in that corporation. The lawsuit names Dexter King and the corporation as defendants. It alleges that last month, the defendants \"converted substantial funds from the estate's financial account at Bank of America for their own use.\" Harmon Caldwell, an Atlanta attorney representing the plaintiffs, said Dexter King is a signatory on the account, but \"was not authorized to transfer the funds,\" and gave his sister \"no notice that those funds were being transferred.\" The suit says that as a result of the transfer, \"plaintiffs have and will suffer financial loss.\" The lawsuit lists Bernice King as a plaintiff both individually and as administrator of their mother's estate. Separately, the suit says Dexter King \"has wrongfully appropriated assets belonging to the [estate of the Rev. Martin Luther King Jr.] or its shareholders for his own benefit.\" ", "Caldwell said Dexter King has refused to say what has happened with some of the corporation's money. \"I can't tell you that he's gone out and used corporate assets for his own living expenses,\" the attorney said. \"What I can tell you for certainty is that by not providing Martin and Bernice with information about how the corporation is using its assets, he is essentially using those assets, appropriating those assets for his own benefit.\" The plaintiffs' attorneys would not estimate the size of either estate. But one, Jock Smith, noted that a collection of King's manuscripts and other items was sold in 2006 for a reported $32 million. \"I don't think it was a substantial corporation of any sort before that,\" Smith said. Over the years, the family of the civil rights leader has zealously protected its financial interests, at times taking legal steps even against the media for showing some of King's most famous speeches. In 2005, some news agencies reported on the King Center, a nonprofit, having put millions of dollars into a for-profit business run by Dexter King. The family rejected allegations of wrongdoing, and has generally pushed to keep financial matters private. Smith said his clients made repeated efforts to reach out to their brother in recent weeks before deciding to take legal action. Smith agreed with the suggestion that it was emotionally tough for the King children to file the suit. \"That would be the understatement of the" ]

[ "A whopping 70 percent of American kids aren't getting enough vitamin D, and such youngsters tend to have higher blood pressure and lower levels of good cholesterol than their peers, according to two new studies published this week in the journal Pediatrics. Low vitamin D levels also may increase a child's risk of developing heart disease later in life, experts say. People who drank milk less than once a week were among those most at risk for vitamin-D deficiency, a study found. \"We were astounded at how common it was,\" says study author Dr. Michal Melamed, an assistant professor of medicine, epidemiology, and population health at the Albert Einstein College of Medicine, in the Bronx, New York. \"There is a lot of data that suggests adults with low vitamin-D levels are at risk for diabetes, high blood pressure, cardiovascular disease, and a lot of cancers, and if kids start out with low levels and never increase them, they may be putting themselves at risk for developing all of these diseases at a much earlier age.\" Vitamin D is often called the \"sunshine vitamin\" because the human body makes it only when exposed to sunlight -- although it only takes 10 to 15 minutes a day to make an adequate amount. Vitamin D, which helps the bones better absorb calcium, is also added to multivitamins and milk. In Melamed's study, the researchers looked at the vitamin D levels of more than 6,000 people ages 1 to 21. They checked for vitamin-D deficiency, which is defined as less than 15 nanograms per milliliter of blood (ng/mL), and vitamin-D insufficiency, which is defined as 15 to 29 ng/mL. Overall, 7.6 million, or 9 percent, of U.S. children were vitamin-D deficient, and another 50.8 million, or 61 percent, had insufficient levels of this important vitamin in their blood. Children with low levels of vitamin D were more likely to have high blood pressure and lower levels of high-density lipoprotein, also known as good cholesterol -- two factors that are considered major risk factors for heart disease later in life. Health.com: How cholesterol affects your heart's health Children with low vitamin-D levels also had higher levels of parathyroid hormone than their counterparts with adequate vitamin D in their blood. Parathyroid hormone is a measure of bone health. When levels are high, it suggests that bones need more calcium to grow. ", "Watch more on kids in the U.S. and low levels of vitamin D » Overall, those most at risk for a vitamin-D deficiency were older, female, obese, drank milk less than once a week, and spent more than four hours a day watching TV, playing video games, or working on a computer. They were also more likely to be children with darker skin, including non-Hispanic blacks and Mexican-Americans. (Children with darker skin are more likely to be deficient in vitamin D because they have more melanin than their fairer counterparts. Melanin is the pigment that gives skin color, but it may prevent the skin from absorbing enough sunlight to produce an adequate amount of vitamin D.) Health.com: Battle aging with vitamin D In the second study, a research team led by Jared P. Reis, Ph.D., of Johns Hopkins Medical Institutions, looked at 3,577 adolescents ages 12 to 19. Those with low levels of vitamin D were more likely to have high blood pressure, high levels of blood sugar, and metabolic syndrome (a cluster of factors known to increase risk of heart disease) than their counterparts with ample vitamin D in their blood, regardless of how much they weighed. Exactly how a lack of vitamin D increases the risk of heart disease is an evolving story. In terms of blood pressure, vitamin D helps control renin, a protein that plays a role in regulating blood-pressure levels. Health.com: Why belly fat increases type 2 diabetes risk The best vitamin-D boosting strategy involves a three-pronged approach, says Melamed. \"You can get a little bit from food, but not as much as you need,\" she says" ]

[ "e seeing that increasingly, people are shifting to LTE 4G 74% of the base are using 4G now, and that is a number that continues to increase. And you'll see that the dependency on 2G and 3G is diminishing.\nSo at this point, let me turn you over to Mr. Pangilinan for the latest news for 2021.\nManuel V. Pangilinan -- Chairman of the Board, President and Chief Executive Officer\nThank you, Anabelle, and good afternoon to all of you. Starting with our revenue expectations for 2021. Overall, service revenue grow by high-single-digit for the year, broken down roughly as follows: for the wireless revenues, we expect high-single-digit growth for 2021; for home revenues, we expect high-double-digit growth in revenues. It's just the fixed broadband side of our business. And for the Enterprise revenues, high-single-digit growth for the year. The decline in revenue for international would be modest starting 2021 and will likely continue to be modest in the coming years. So it's not positive, assuming travel resumes, and we can gain back our growth in our roaming revenues.\nCapex, around PHP90 billion, PHP88 billion to PHP92 billion. So roughly PHP90 billion for the year. Higher than the PHP72 billion we spent in 2020. Telco core between PHP20 billion to PHP30 billion, more like PHP30 billion as a target set really for management. And the good news is that we are prepared to increase our dividend payout by 5% or to 65% of our telco core as we use in compute our dividend payout basis.\nSo that summarizes our prognosis for 2021. And I think we're ready for your Q&A.\nQuestions and Answers:\nMelissa V. Vergel De Dios -- First Vice President & Head-Investor Relations\nWe're now ready to take your questions. [Operator Instructions] The first set of questions came from of Carlos Angelo Temporal of APS. First one, given the recent news of Converge reportedly in talks with SpaceX starting satellite broadband. Is PLDT looking into tapping this technology of low orbit satellite broadband as well.\nAlfredo S. Panlilio -- Advisor\n", "Yes. We are talking to various of these companies, which are currently popping up in the industry, not only since this year, we actually are in talks since 1.5 years with various companies. Low orbit is an interesting technology, also, I personally believe it's a little bit -- been gone out of proportion in terms of what they really can do. It's a fantastic technology for covering those areas. We cannot cover with our terrestrial technologies. And in fact, PLDT has been for the longest time, satellite capacity provider with our Visa services we give to various industries, also to maritime businesses. So I think we understand that business very well, and we are looking into it as we speak. The key question will be the financial viability, given the limited ability to spend here in the Philippines.\nMelissa V. Vergel De Dios -- First Vice President & Head-Investor Relations\nNext question. Globe subscribers continue to decrease, particularly TM subscribers. While TNT appears to be absorbing most of the increase in subscriber count. With that, are there particular areas where the room SIM take up for TNT or even Smart are significant.\nAlfredo S. Panlilio -- Advisor\nJane? Are you there, Jane?\nJane J. Basas -- Senior Vice President and Head of Consumer Wireless Business at Smart\nYes. I can hear.\nAlfredo S. Panlilio -- Advisor\nYes, go ahead.\nManuel V. Pangilinan -- Chairman of the Board, President and Chief Executive Officer\nDid you hear question?\nJane J. Basas -- Senior Vice President and Head of Consumer Wireless Business at Smart\nYes, sir, yes, I did. For the value brand TNT, we've actually seen the growth for the brand across all areas. Except for the PCPs and this one in NCR, but a significant growth is observed in Visayas and Mindanao. And in terms of the business, in terms of revenues, the growth is coming from the adoption of data among this particular segment.\nMelissa V. Vergel De Dios -- First Vice President & Head-Investor Relations\nThe next question, what's the level of DE or net debt-to-EBITDA that management is comfortabl" ]

[ "has gone to a higher level and I think that doesn't just reflect our success, but it reflects -- there's more opportunity in the market. And definitely now, some of this is being driven by 5G, particularly, say, IoT and smart city-type applications, both for cloud large Internet, and also for enterprise customers.\nDo you want to add...\nWilliam Wei Huang -- Founder, Chairman and Chief Executive Officer\nYeah. I think -- Frank, I think the trend is not only triggered by the COVID, right? I think it is -- the logic is that -- the whole logic is in China, the visualization is overwhelming to a vault [Phonetic]. And I think the cloud, as we mentioned again and again, cloud is still in the early stage. So, we will see in the next five years, cloud still -- cloud payer still will be the major key driver to drive the data center demand. In the meanwhile, as I just mentioned, I think a lot of the new Internet -- large Internet companies still be produced in China, like [Indecipherable], like PDD, right? If you look at the last five years, they are lapping, right? Now, they became a $10 billion company, more than $10 billion company. And I think this is -- so that means the Internet still get back and penetrated to different segments -- it penetrated different vertical industry. So, I think there's still a big space for the Internet company to grow.\nSo, I think this is due -- and nowadays, a lot of Internet companies start to use -- not just using a public cloud, they're using the -- adopted to hybrid cloud architecture, this will trigger a lot of cloud demand, plus a lot of data center co-lo, or hyperscale data center demand. So, I think we are very confident. In the meanwhile, I just mentioned the -- like the traditional financial institution, plus enterprise, they also start to transfer their architecture from the traditional architecture to their cloud base -- hyperscale base. So, this will create another wave of demand for data center.\nSo, in my view, there is the three driver: cloud, Internet, enterprise, in next five or even 10 years will be the key demand -- a key driver to drive the demand. So, that's why we bring such a big money and we try to catch up -- echo this wave, right?\nFrank Louthan -- Raymond James -- Analyst\nOkay. Great.\n", "William Wei Huang -- Founder, Chairman and Chief Executive Officer\nBut I will add a little more. As Dan mentioned, 5G is just implemented right now. But we believe after two years, 5G will trigger more IoT stuff, will trigger more a new application and also, will be another potential key driver to drive the data center demand.\nFrank Louthan -- Raymond James -- Analyst\nI mean, what are some of the key applications you think that come out of 5G? What are you seeing right now?\nWilliam Wei Huang -- Founder, Chairman and Chief Executive Officer\nYeah. I think there's a lot of the -- so far, I think it's too early to talk about it. But you will see a lot of the IoT stuff. We talk to a lot of the traditional industry, they all talk about the IoT stuff. And I think the very clear 5G will drive there -- the new application to implement to the all the supply -- all the value chain [Phonetic] -- business value chain, including the manufacturing -- traditional manufacturing and the traditional retail -- traditional industry. So, I think the -- this is not very clear now, but the market is talking about a lot of the development right now.\nFrank Louthan -- Raymond James -- Analyst\nAll right. Great. Thank you very much.\nOperator\nYour next question comes from the line of James Wang from UBS. James, your line is now open.\nJames Wang -- UBS -- Analyst\nGood morning, management. Congratulations on a good result. So first question from me is, I remember in the second quarter result, Dan mentioned there were a few locations that experienced some delays in activation of power supply. So I'm just wondering whether these are resolved now. And maybe a broader question on this is, as the number of projects and construction grows, is it getting more difficult to execute with the same level precision as the past and then th" ]

[ "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" ]

[ "The honors were late but still well-received Wednesday for members of the first all-African-American, all-female unit to serve overseas in World War II. Mary Crawford Ragland said when they came home from service, there were no parades for them. During the war, nearly 1,000 women from the \"Six-Triple Eight\" Central Postal Battalion moved mountains of mail for millions of American service members and civilians that clogged warehouses in England and France. Their service to their country had been overlooked for years, starting with when they returned to the United States from assignments overseas. \"There was no parade,\" said Mary Crawford Ragland. \"We just came home.\" The 82-year old was among those gathered Wednesday at the Women's Memorial at Arlington National Cemetery, where a U.S. Army support group called the Freedom Team Salute presented them with certificates of appreciation, timed with Black History Month. Watch women receive their honors » The group also gives a letter of appreciation signed by the Army Chief of Staff and the Secretary of the Army, an Army lapel pin and an Army decal. For Alyce Dixon, 101, it was worth the wait. \"They asked me because I'm one of the oldest survivors, and I can still talk,\" she said with a smile. Nearly 800 women that were part of the 6888th were first stationed in Birmingham, England, for three months, moved to Rouen, France, and finally settled in Paris, according to the Army's Web site. They were responsible for redirecting mail to more than seven million people -- all U.S. armed forces in the European Theater of Operations, including Army, Navy, Marine Corps, civilians and Red Cross workers. As Army units quickly moved throughout Western Europe and into Germany, a massive mail snag occurred because of a manpower shortage. Soldiers continued to move, fighting battles across the continent, but weren't getting their mail. Morale began to drop. That's when the Army turned to the \"Six-Triple-Eight\" When Dixon and the other women arrived at a warehouse in early 1945, they found the building had no heat. Inside the warehouse, the windows were painted black to keep the light from coming out at night against bombing raids. Because there was no heat, the women donned long johns and anything else they could layer on. But the temperature was nothing compared with the daunting challenge of sorting the mail. ", "When they walked inside the warehouse, it was stacked to the ceiling with undelivered packages and letters. \"They had 90 billion pieces of mail,\" Dixon told CNN, some of it from hometown friends and family addressed only to \"Junior, U.S. Army or Buster, U.S. Army,\" she said. \"We had to figure it out,\" she said. Even when there were complete names, it wasn't easy. There were 7,500 soldiers named Robert Smith in the European Theater of Operations, according to the Museum of Black WWII History Web site, and the women had to keep them straight. Because all undeliverable mail passed through them, they were charged with keeping information cards on everyone in the European Theater of Operations, according to the Army site. Because frontline soldiers were often moved frequently, the women often had to update information several times a month. While it was an arduous task, the women knew the importance of their job. For soldiers in the field, letters from loved ones brought important personal connections that kept their morale going. So they kept on sorting. Eight hours at a time, three shifts per day, seven days a week, they kept on sorting. And because of them, 65,000 letters went out each shift to soldiers across Europe. On Wednesday, the favor was finally returned." ]

[ "t we're advancing investment in the business. So maybe Jay can talk a bit about that.\nJay Mazelsky -- President and Chief Executive Officer\nYes, sure. So just a couple of things to build on Brian's comments. Obviously, we're in a high-growth environment and there's excellent opportunity to continue to support that growth. We do that, obviously, in areas like reference labs and in production and field support. And the other area of opportunity for us is just our international markets. We've identified this as being very attractive, and we continue to advance our expansions where it makes sense. We know that there's pretty good short-term return on those expansions. We have, I think, really optimized our ability to identify all the right pieces you need to have in place, including additional field personnel at the reference labs, information technology investments, those type of things. So we're very optimistic about the opportunity short-term and longer-term in our markets, US as well as international, and we'll continue to advance as we see opportunities before us.\nMichael Ryskin -- Bank of America -- Analyst\nGreat. Thanks. And then if I could throw in a follow-up sort of on some of the underlying figures you provide for market conditions. As always, the snapshot is very helpful in terms of visit growth and revenue growth for practices. I'm just curious, looking at it in more granularity, it seems like you're actually seeing continued acceleration from 4Q both on a raw numbers basis, and if you adjust for some of the comp I think -- I guess I'd say that we were expecting a little bit more moderation and maybe a gradual phase as you go through the year, but it seems like there's no indication of that. Is that a fair analysis of the data? Have you seen anything that would indicate that things are moderating a little bit as some of these markets sort of come out from COVID, and we're seeing some reopening of the economy? Just wondering if you could talk about sort of the underlying trends there?\nBrian P. McKeon -- Executive Vice President, Chief Financial Officer, and Treasurer\n", "I would say, overall, Mike, the theme would be more consistency than change. What we saw in 2020 was an improvement, if you break down the drivers of things like CAG Diagnostic revenue growth in the clinic. We saw higher levels of contribution from frequency and utilization and those have sustained. If there was one thing that improved a bit in Q1, which we highlighted in the comments, was the new patient contribution to clinical visit growth was up about 100 basis points. So I think some of the building effect of the new puppies and kittens helped.\nBut adjusting for that, the 2-year growth rates were largely consistent with Q4. It was more consistency than change. We're entering a period now where we'll have the COVID compares. The growth rate numbers are a little tougher to fall, so we're trying to highlight some of the 2-year trends. And I think we're encouraged that the 2-year trends are holding up well, and that's factored into our outlook for the balance of the year.\nJay Mazelsky -- President and Chief Executive Officer\nI would just add to that, Mike, the trends we described -- the broader level trends we've described, have largely been intact. So these are obviously new clinical business growth driven by new patients, the majority of which are puppies and kittens, higher usage and intensity of diagnostics and more of a pivot to services by the veterinarians. So those that we have seen over the last second half of 2020, we continue to see in Q1.\nBrian P. McKeon -- Executive Vice President, Chief Financial Officer, and Treasurer\nWell, one thing I'd highlight in addition to the market trends is in terms of IDEXX's execution, our international teams are really doing an excellent job. We had excellent instrument placements, growth in 360. I think the global commercial model that we've been looking to leverage and build upon is really, really in a good place, and we're very pleased with the international momentum. So I wanted to highlight that.\nOper" ]

[ ", HP and Opel. We're also pleased to see the announcement of the first-ever premium Windows on ARM enterprise focal laptop, the Lenovo ThinkPad X13S powered by the new Snapdragon 8CX Gen 3 compute platform. This new ThinkPad features 5G millimeter wave AI accelerated experiences, advanced camera and audio technology, an ultra-slim, fanless design and up to 28 hours of battery life on a single charge.\nWe're encouraged by the broad interest in our upcoming products, utilizing our industry-leading CPUs designed by our NUVIA team. We continue to drive the inevitable transition to ARM-based computing while redefining the future of mobile productivity. In edge networking, we continue to benefit from the demand for global connectivity required for remote work, school and play, and we provide industry-leading solutions, enabling the migration to WiFi 6 and WiFi 8 mesh technologies. We also recently announced the world's first and fastest WiFi 7 commercial solution, which we believe will further extend our leadership position.\nWith multi-gigabit WiFi performance, ultra-low latency and unmatched spectrum versatility, we believe our WiFi 7 solutions will unlock a new era of advanced consumer and industrial applications. Our 5G fixed wireless access solutions also continue to gain traction as a last mile broadband solution. We now have more than 125 fixed wireless access designs announced or in development by more than 40 OEMs. We also introduced next-generation features such as stand-alone 5G millimeter wave support in our RF sensing suite to enable operators to extend their 5G service offerings to the home and enterprise.\nIndustrial IoT experienced the fastest year-over-year revenue growth within IoT this quarter driven by continued demand for both connectivity and advanced processing at the edge. Notably, this quarter, we saw accelerated demand for ruggedized handheld devices for warehousing, logistics and healthcare industries, as well as for robotics platforms. Going forward, we're actively building an ecosystem of system integrators and channel partners to support the scale of our industrial IoT platforms as they become critical for the digital transformation of multiple verticals. In handsets, we had record revenues of $6.3 billion driven by continued traction with leading smartphone OEMs such as Samsung, Xiaomi, Oppo, Vivo and Honor, where Snapdragon continues to be the mobile technology platform of choice for premium and high-tier Android.\n", "We now have approximately 75% of the premium tier processor volume for Samsung's Galaxy S22 smartphones, up from approximately 40% in the Galaxy S21. Samsung's strategy to adopt Qualcomm for the majority of volume is significant and validates our platform leadership, as well as consumer preference for the Snapdragon brand. Our Snapdragon mobile solutions continue to define premium smartphone experiences. Let me highlight a few examples from our Snapdragon 8 GEN-1.\nIn imaging, devices enabled by this platform achieved the highest DxOMark ever, making it the best smartphone camera in the world. In connectivity, our solution features the world's first 5G AI processor in a modem RF system, enabling AI-based performance enhancements, antenna tuning, network selection and more. In AI, our seven generation AI engine doubles the computational performance versus the previous generation. Our handset strategy, as outlined at Investor Day, is enabling share gains and enhancing our ability to capture the most significant portion of the revenue opportunity.\nIn RF front end, we continue to drive 5G modem RF leadership. Our fifth generation modem RF system now implements advanced features such as AI integration, millimeter wave and sub-6 dual connectivity in 5G sub-6 care aggregation with FDD and TDD spectrum. Looking forward, in addition to growth in handsets, we're expanding RF front end into automotive and IoT. In our licensing business, revenues of $1.6 billion were above the midpoint of our guidance driven by the most valuable patent portfolio in the industry, and we continue to develop and patent n" ]

[ ", it's likely that we will expand our use of external foundries for certain technologies and products. We will provide more details on this and our 2023 roadmap once I fully assess the analysis that has been done and the best path forward. Bob and George will walk you through the financials and provide guidance for the first quarter shortly. We are holding off on providing guidance for the full year until I join, but we will do so in a timely fashion no later than on our next earnings call in April.\nLooking ahead, the world is becoming more digitally connected, expanding the market in front of us. Intel is the only semiconductor company in the world that has the depth of intelligent silicon, platform vision, design and manufacturing capabilities, and scale that our customers need to fuel their next-generation innovations. There is an enormous opportunity ahead for Intel, but to be able to seize these opportunities, we have to deliver the best products and stay ahead of our customers' needs. We need to become more agile in a very competitive market.\nWe need to execute flawlessly and deliver on our commitments. We need to passionately innovate with boldness and speed. Intel culture and values must be healthy and vibrant assuring our ability to attract and retain the best engineering talent in the world. I look forward to working with the incredibly talented global Intel team and industry partners to continue delivering the best technologies for our customers around the world.\nI also look forward to engaging with you, our shareholders, in the coming months to hear your perspectives and discuss our vision and strategy for Intel. We will position this company for sustained growth and leadership for our industry, our country in an increasingly digital world. I also want to extend my deepest respect and appreciation to Bob for his leadership and significant contributions to Intel through this critical period. I'm just starting to dive into the business, but already I'm confident that the strong foundation and progress achieved under his leadership put us on the right track to build on Intel's great history, and to create value for our customers and shareholders in the years to come.\nThanks again. Bob, over to you.\nBob Swan -- Chief Executive OFficer\n", "Thanks, Pat and welcome back to Intel. It has been an honor to lead this incredible company and its talented team. It gives me great confidence in Intel's future knowing that I'll be passing the baton to Pat whose technical expertise, industry knowledge, execution track record, and commitment to our company are indisputable. Over the last two years, we made significant progress on our strategy to transform Intel into a multi-architecture XPU company, to move from silicon to solutions, and to contemporize our IDM model.\nI am proud of what we're able to achieve together as an Intel team in a relatively short period of time and echo Omar's words that Intel is in a strong strategic and financial position as we make this transition. As demonstrated by the results we announced today, demand for Intel's innovative technologies remains very strong and our investments to capitalize on future growth opportunities are paying off. Our Q4 results significantly exceeded our expectations capping off our fifth consecutive year of record revenue. We generated $20 billion in revenue and $1.52 in EPS, exceeding our guidance by $2.6 billion and $0.42 respectively.\nFor the full year, we delivered $77.9 billion in revenue, up 8%, and $5.30 in EPS, up 9%. The client, data center, memory, and Mobileye businesses each set all-time revenue records. In Q4, we continued to advance our three strategic priorities: improving our execution to strengthen our core business, extending our reach to accelerate growth and redefine our position in the industry, and continuing to thoughtfully deploy capital to create value for our shareholders. Let me briefly discuss some of the highlights.\nStarting with improving our execution to strengthen our core business, let me start with an update on process technology and our prod" ]

[ "lagship smartphones, the Snapdragon 8 Gen 1 at our annual Snapdragon Tech Summit. The announcement was viewed by more than 50 million people worldwide. The news Snapdragon 800 Gen 1 leads the way to a new era of premium mobile technology with category-defining enhancements across modem RF, camera, AI, gaming, security, and more. Snapdragon 800 Gen 1 is the world's first 5G modem RF solution to reach 10-gigabit download speeds.\nIt's the first to include commercial 18-bit mobile image sensor and the world's first platform compliant with the Android-ready Secure Element Alliance. We also announced new mobile platforms in every Snapdragon series to address global customer demand across every smartphone tier. In our licensing business, first-quarter results reflect a favorable mix in the strength of smartphone shipments. With over 150 5G license agreements, QTL is well-positioned for the future, and we continue to expect 5G to have a longer life cycle than prior generations due to its broad application across multiple industries.\nLastly, demand remains strong across all of our technologies and continues to exceed supply. Despite ongoing challenges across the global supply chain, our multi-sourcing and capacity expansion initiatives will provide incremental improvements to our supply throughout the year. I would now like to turn the call over to Akash.\nAkash Palkhiwala -- Chief Financial Officer\nThank you, Cristiano, and good afternoon, everyone. We are extremely pleased to report strong results to start our fiscal year. We delivered our second consecutive quarter of record non-GAAP earnings, with revenues of $10.7 billion and non-GAAP EPS of $3.23. These results reflect year-over-year increases of 30% and 49%, respectively, driven by strength across both QCT and QTL.\nFor QCT, this was another record quarter with revenues of $8.8 billion and EBIT of $3.1 billion, up 35% and 62%, respectively, versus the year-ago quarter. QCT EBIT margins of 35% surpassed the high end of our guidance range and increased 6 points versus the year-ago quarter driven by revenue scale and operating leverage. Handset revenues of $6 billion increased 42% year over year due to greater than 60% growth in revenues from Snapdragon chipsets for Android devices. RF front-end revenues of $1.1 billion grew 7% versus the year-ago quarter, reflecting the previously mentioned pull-in of demand into the fourth fiscal quarter.\n", "Our RF front-end revenues for Android devices grew by greater than 25% versus the year-ago quarter as we continued to see strong traction across all major OEMs. IoT revenues were up 41% year over year to $1.5 billion on continued demand for our cloud-connected intelligent edge devices. Each of the consumer, edge networking, and industrial categories grew by at least 30% compared to the year-ago quarter. Automotive revenues of $256 million grew 21% year over year on the strength of our design wins across our Snapdragon digital chassis.\nWe recorded QTL revenues of $1.8 billion, an increase of 10% year over year, and EBIT margins of 77%, which was above the midpoint of the guidance. These results reflect a favorable mix and slightly higher handset shipments. Turning to global handsets and our guidance for the second fiscal quarter. For calendar 2021, consistent with the previous guidance, we estimate global 3G, 4G, 5G handsets grew 7% year over year, including approximately 535 million 5G handsets.\nFor calendar 2022, there is no change to the forecast provided at our Investor Day with greater than 750 million 5G handsets. For the second fiscal quarter, we are forecasting revenues of $10.2 billion to $11 billion and non-GAAP EPS of $2.80 to $3. In QCT, we expect revenues of $8.7 billion to $9.3 billion and EBIT margins of 32% to 34%. At the midpoint, this implies year-over-year revenue growth of 43% and EBIT dollar growth of $1.4 billion.\nFor handsets and RF front end, we expect revenues to be in line sequentially as seasonal decline in Apple revenues is offset by continued growth in revenues from Android devices. Within handsets, the increase i" ]

[ "BEIRUT, Lebanon (CNN) -- Amid high emotions and tight security, thousands lined the streets of Beirut Friday to honor Antoine Ghanem, the anti-Syrian Lebanese MP killed in a powerful bomb blast along with four others. Amin Gemayel (R), Phalange party head, carries the coffin of assassinated deputy Antoine Ghamen. Against an atmosphere of intense political and patriotic fervor, the flag-draped coffins of the politician and two bodyguards also killed in Wednesday's rush hour blast made its way through the city's Christian district to the Sacred Heart church on what the government had declared as a day of national mourning. The procession was accompanied by thousands waving flags, as well as a brass band playing the anthem of Ghanem's Phalange Party, The Associated Press reported TV pictures showed distraught mourners crowding and reaching out to the coffins as they were carried aloft. Several people were seen to collapse and had to be carried away. Mourners also carried photographs, threw rose petals and unfurled banners, some of which read \"We Won't Kneel,\" AP said. The coffins were greeted at the Christian Maronite church with applause from the gathered mourners, the agency said, including majority leaders and the Lebanese cabinet as well as Ghanem's family and friends. Ghanem was later buried in the city's Christian district. Ghanem's death is the latest in a series of attacks targeting prominent anti-Syrian figures, with the most notorious being the February 2005 assassination in Beirut of former Lebanese Prime Minister Rafik Hariri, which sparked widespread protests that led to the ouster of Syrian forces from Lebanon. Hariri also died in a massive explosion. The incident threatens to cast the country into political uncertainty ahead of a key presidential vote in a tightly divided parliament, almost evenly split between anti- and pro-Syrian camps. Watch how Ghanem's death disrupts Lebanese politics » CNN's Beirut bureau chief Brent Sadler said that many Lebanese now feared for the future, especially given other events in the region including the conflict between Palestinians and Israelis, recent political differences in Iraq and Iran's bid to become a super power. \"There continues to be among a great deal of people here a sense of foreboding that perhaps the worst is yet to come,\" he said. U.S. President George W. Bush, in a written statement, joined other world leaders in condemning the \"horrific assassination.\" ", "\"Since October 2004, there has been a tragic pattern of political assassinations and attempted assassinations designed to silence those Lebanese who courageously defend their vision of an independent and democratic Lebanon,\" Bush said Wednesday. Also in a written statement, a spokesperson for Ban Ki-moon said the U.N. secretary-general \"condemns in the strongest terms this terrorist attack.\" \"The secretary general urges all Lebanese to exercise utmost calm and restraint at this very critical time and to allow judicial procedures to take their course,\" the spokesperson said. Bush's statement added: \"The United States opposes any attempts to intimidate the Lebanese people as they seek to exercise their democratic right to select a president without foreign interference. We will continue to stand shoulder-to-shoulder with the Lebanese people as they resist attempts by the Syrian and Iranian regimes and their allies to destabilize Lebanon and undermine its sovereignty.\" The U.S. Embassy in Beirut issued a statement saying: \"It is not a coincidence that these attacks target those figures who have been working to secure Lebanon's independence from renewed Syrian hegemony. We note with concern that many Lebanese politicians allied with Syria have in fact warned that murder and violence would be the results of any effort to exercise genuine parliamentary democracy.\" And U.S. Secretary of State Condoleezza Rice, in a written statement, said: \"The bombing that claimed these lives was another act in a campaign of terror by those who want to turn back the clock on Lebanon's hard-won democratic gains.\" \"The world should speak with one voice in calling for an end to violence in Lebanon intended to subvert democratic processes in that country,\" Rice said. \"Lebanese elections, scheduled to begin in just days," ]

[ "relative to where you guys finished 2018 with? So maybe you can talk through kind of the cadence of that as we move forward beyond just this year and then, are you guys looking at new products and new geographies as major driver as you go into 2020 and beyond.\nAlison Bauerlein -- Founder, Chief Financial Officer and Executive Vice President, Finance\nYeah, sure. So from the side of looking at double-digit expected growth going into 2020, we aren't assuming any material contribution from new countries. So our focus still will be in the US and Europe as our primary market. Obviously, we do plan to continue to look for opportunities outside of there, but that really isn't contemplated in the numbers that we discussed here and that doesn't include any contribution in new areas like China. From new products, we are assuming a small, relatively small contribution associated with the New Aera product portfolio, which we are very excited to add to our product portfolio, although there is some additional R&D work there to get full use of the technology over the next couple of years, but we are assuming that does start to contribute in 2020. So on top of that, just in terms of cadence, obviously we're not given specific 2020 guidance today. It's very early for us to even comment on 2020. So we would expect the underlying seasonality trends to be similar to what we've seen in prior years with I know higher sales in the second and third quarter versus the fourth and first quarter, but outside of that, we need to get a little closer to the year before we comment on specific trends.\nMargaret Kaczor -- William Blair -- Analyst\nOkay. And then, in terms of the New Aera acquisition that you guys had referenced, there's a few products, I think in that category that have been out there and so if you looked at evaluating that market which asset was the right asset to target, why that -- is it something that's easier to incorporate into your device on your POC and that gives you that competitive advantage in the space. And then if you can give us a sense of the commercial model, if you're going to sell it D2C in a near-term. Do you guys have a sense of ASP or gross margin contributions for that, and then just [Indecipherable] one more in there, how do you expect, traditional NIV players to respond to kind of you guys entering the market with your unique combination. Thanks.\n", "Scott Wilkinson -- President, Chief Executive Officer and Director\nYeah, I mean, we think that the New Aera product and technology fits perfectly with not only our oxygen product portfolio that we have today, but also is very complementary with our go-to-market strategy. The great thing about this product is that we liked about it is, not only the efficacy is proven in the clinical study -- peer-reviewed study that they ran, but also it's designed for patient preference and simplicity and ease of use, which is kind of our success formula for our POCs. So it's a product that we think that we can leverage our sales force, as well as our marketing spend because many of the current leads that we generate right now would be candidates for the New Aera product. So we can get some leverage there. It's an area where we have expertise in respiratory and oxygen therapy services. So for our first acquisition, it fits close to home. It also allows us to get into adjacent markets, downstream in the non-invasive ventilation for really the sicker patients that need ventilation in addition to oxygen therapy, but also upstream where we think that we can impact a portion of some of the basic COPD patients that have breathlessness, where really there isn't any coverage criteria or anything that they fit under, but it's a retail opportunity for us and we have a great retail model that we've proven over the last 10 years. So again, we think that fits nicely with our core competency and where we are unique.\nAs far as the channels we would sell it in, obviously, I just mentioned direct-to-consumer, we think it fits nicely there, it will also be a perfect fit for our physician, sales force somethi" ]

[ "e are expecting stable growth to continue within emerging stream platforms through the balance of the year.\nAnd as Steve mentioned and you alluded to, we do see enormous long-term potential as sort of Web3 scales, and we see opportunities in collectibles, NFTs, and other web opportunities.\nSteve Cooper -- Chief Executive Officer\nGreat. So before I address Web3, let me just say that we've been very consistent that with respect to traditional streaming both in mature markets and in emerging markets, we still see tremendous potential for growth. When you look at the subscriptions relative to the smart device population. When you look at the nascent trend of raising prices that are sticking, all of these for us, our markers, it say, these areas will continue to enjoy a very, very nice growth for the foreseeable future.\nWe see the same opportunities, albeit as blueprints out in many of these emerging models. They have, at least at the moment, they lean more toward buyouts in consumption. But we continue to see new models coming to market every day. We continue to see those models have been in the market for a year to continue to grow.\nAnd so we are confident that, on what we would now describe as the more traditional side to the business, that long-term sustained growth is in our view, quite probable. With respect to Web3, which is a broadway of talking about blockchain, crypto, NFTs as a former crypto, and so on, we see not only the beginning of -- these -- the beginning of interactive models coming to the surface and beginning to engage fandom around the world. But we think there are going to be more opportunities spend than we can even imagine as I'm sitting here in my kitchen today. I will say this, I think that the emergence of Web3 is going to further amplify the importance of music labels and publishers.\n", "This is an area between models that will emerge the technology of blockchain, the perils of navigating crypto, the skill sets required to deal with distributed autonomous organization will require organizations like us that have the financial resources the intellectual capital. By that, I mean the specific skill sets and the global footprint to be able to help our artists and songwriters not only navigate through this brave new world or brave new universe but navigate successfully in order to optimize their presence inside the world of Web3 and to optimize their revenue options and their revenue alternatives inside of Web3. So I think labels and publishers will become more important than they are today as the world becomes more and more complex. I don't believe that when I look at individual artists' managers, their agents that they will be able to be as successful as they can be unless they navigate these new but very interesting waters with Warner sit and others like us.\nBen Swinburne -- Morgan Stanley -- Analyst\nThank you, guys.\nOperator\nThank you. Our next question comes from Kutgun Maral with RBC Capital Markets. Your line is open.\nKutgun Maral -- RBC Capital Markets -- Analyst\nHi. Good morning. Thanks for taking the questions. One on capital allocation and one on margins, if I could.\nFirst, you've clearly been very active in investing to sustain or if not accelerate our growth through strategic acquisitions. Historically, you've been very consistent with your capital allocation philosophy, financial discipline, and ROI focused. But I'm just trying to better understand if the new deals are indicative of a greater focus on M&A and maybe willingness to deploy capital as we move ahead, particularly as we may be at the cusp of a pretty massive step function increase in free cash flow over the next few years. And just second, EBITDA margins continue to be a bright spot, up almost 200 basis points year over year to over 24% despite the meaningful recovery in lower-margin revenue streams.\nCan you just help us think about the puts and takes as you track toward a mid-20% range? It seems like you might get there well ahead of expectations, but would, of course, appreciate your perspective. And I'm not sure if recent M&A is " ]

[ "o depend on timing with the Chinese providers on I guess shifting back up to the higher frequency.\nWe're expecting really end of this year, first quarter of next year, so it's all going to be really driven by the time in the market. The good news is that we believe the chipset supply, particularly with the wider bandwidth is sampling and able to ramp as well, which has been part of what's hampered us. And then looking further out, our investment that we're looking at right now with the 5G U.S. market, we're going to be sampling toward the end of this year, but it takes a while to get designed into the infrastructure market so that will be a further ways out as well as the U.S.\nmarket ramping.\nJeff Shealy -- Founder and Chief Executive Officer\nSo Tony, I'd like to add to Dave's comment, really, just for those of you not familiar with that Asian market. What has transpired there is, as Dave touched on, is this move to much significantly wider bandwidth. Initially, we saw specs in the 100 megahertz bandwidth range. Those have expanded out to 300 megahertz.\nAnd so while we were ready to ramp with the portfolio that we announced up at 300 megahertz, there were some other -- as Dave mentioned, chipset availability was a challenge. Also some of the operator deployment focus was an issue. I did want to point out for the -- some of the milestones and -- or as a milestone in June, I don't think we advertised tremendously, but we did take the opportunity with this low to really make some improvements on the product portfolio and enhance some of the performance for that -- for our wide bandwidth filter portfolio. And then as Dave touched on, I want to make sure we brought in the C-band engagements.\nDave talked about sampling, but multiple customer engagements on the C-band that we're pretty excited about for the U.S. market.\nDave Aichele -- Executive Vice President, Business Development\nThanks for the color, guys. Best of luck.\nJeff Shealy -- Founder and Chief Executive Officer\nThank you, Tony.\nOperator\nOur next question comes from the line of Suji Desilva with ROTH Capital. Please proceed with your question.\nSuji Desilva -- ROTH Capital Partners -- Analyst\n", "Good morning, Jeff, Dave, Ken. Congrats on the progress here. I just want to understand on the Wi-Fi 6E market, a lot of momentum here. And 6E, are those all tandem 5.5, 6.5 opportunities? And can you talk about what the Ultra Tri-Band product is? I don't know if I heard that term before.\nJeff Shealy -- Founder and Chief Executive Officer\nOK. I'll -- let's let Dave start.\nDave Aichele -- Executive Vice President, Business Development\nYeah. Good morning, Suji. Thanks for the comment. Pretty much everything that -- well, not pretty much everything that we are shipping right now, both for Wi-Fi 6 and Wi-Fi 6E is tandem.\nAnd the number of MIMO that you see in the 6E has increased, so traditional Wi-Fi 6 was 2 plus 2, sometimes 2 plus 4. What we're seeing primarily in the Wi-Fi 6E multi-user MIMO is 4 plus 4. And we're actually seeing some of that even go up to 8. So this tandem approach, depending on how they configure the system, it's multiple filters per system.\nIt could be eight going up to 12 and even higher. And the ASPs on these filters, the average selling price, is higher as well. So it's a good opportunity for us. And then what's reflective to the Ultra Tri-Band, that really is an architecture that we are enabling in the market that allows the transition of 50 megahertz bandwidth -- transition from UNII 4, which ends at a frequency of 5895 and the start of UNII 5, which starts at 5945.\nSo we are the only supplier filters in the market today that is in design phase and sampling, which we believe we'll production ramp next quarter, that will enable that 50 megahertz transition, which is significant because it enables the full utilization of UNII 1 through UNII 4 for the 5 gigahertz and then UNII 5 to UNII 8 for the 6 gigahertz.\nSuji Desilva -- ROTH Capital Partners -- Analyst\nThanks, Dave.\nJeff Shealy -- Founder and Chief Executive Officer\nOK. And yeah, let me add a couple of " ]

[ " in the second half of this year and going into next year. So we're pleased with the performance on the internal workloads. We see that carrying over to Milan, and sort of the -- the -- let's call it the move from Rome to Milan is -- is -- is not too heavy a lift.\nAnd so we expect that that will continue going into 2021. And in terms of the external facing workloads, we've spent quite a bit of effort sort of building our let's call it sort of the business development engine that sort of let's call it sells along with the cloud vendors, as well as frankly enterprise OEMs. And so our conversation with large enterprises is -- is usually a hybrid conversation. It's -- if you want to buy on-prem, let me tell you what AMD EPYC can do.\nIf you want to use cloud instances, we have a wide variety of cloud instances across all of the largest cloud vendors. And -- and that's actually progressed very nicely. So I think, overall, that -- that's leading to some of our positive commentary in cloud is that we have seen both progress on internal as well as the external sell with motion.\nJoe Moore -- Morgan Stanley -- Analyst\nGreat. Thank you. And then I wonder in terms of data center GPU, you've talked about some of the emerging applications. Because gaming has been an investment that some of your customers have made, what's the status of that and how -- how big a portion of your data center GPU business do you expect to be driven by cloud gaming in 2021?\nLisa Su -- President and Chief Executive Officer\nSure. So I think the cloud gaming portion of the business was a larger portion of the business in sort of past years for the data center GPU. In 2021, we -- we do have additional cloud gaming engagements that will ramp. But I would say it would be the smaller portion of the business and HPC would become let's call it the larger portion of the business in 2021.\nJoe Moore -- Morgan Stanley -- Analyst\nGreat. Thank you very much.\nLisa Su -- President and Chief Executive Officer\nThanks, Joe.\nOperator\nThank you. Our final question today is coming from Timothy Arcuri from UBS. Your line is now live.\nTimothy Arcuri -- UBS -- Analyst\n", "Hi. Thanks -- thanks for fitting me in here. So I guess my first question, Lisa, based on your commentary on data center revenues and your splits and you answered the question before about ASPs in Q4. It sounds like server CPU share is running like 12.5% on your $20 million TAM-based that you use.\nSo you have Milan ramping and you're talking about a lot of visibility on that ramp this year. So I'm sort of wondering if maybe you can give us what your guidance implies or sort of what the next milepost to think of would be in terms of server CPU share as you sort of exit the year and maybe look into next year?\nLisa Su -- President and Chief Executive Officer\nYeah. So Tim, thanks for the question. What -- what I would say is I don't have a new market share target and I think just given all of the -- the variance in the market. But what I will say is we've given you a good view of the business through sort of the percent of -- of revenue it is.\nAnd as I said in the prepared remarks, the -- the -- the data center business was high-teens percentage of annual revenue and it was predominantly -- predominantly server. So the data center GPU was a very small piece of that, and it was predominantly server. As we go into 2021, again, we see significant growth. I would say it's one of the -- the key growth drivers for the company and we'll give you updates as we go along the way in -- in 2021 in -- in terms of how -- how it's growing as -- as a relative size of -- of the business.\nTimothy Arcuri -- UBS -- Analyst\nOK. Got it. And then just quickly on data center GPU. It looks like it was maybe flattish this year, year over year.\nAnd obviously, it's going to grow this year as Frontier -- Frontier comes in the year. Can you just sort of maybe give us some sense in terms of how much you think it could grow? I mean could it double year over year? I understand it's not big from a dollar point of view, but could it double year over year? M" ]

[ "ally invest in building up this leading brand.\nWhat we're doing is that we have a stated purpose to make a global commercial reach and meaning is that we first place we roll out is in the US. Then we have Europe, and then we have China, we have Japan and then you can take the rest of the world. So from that perspective is that we also believe in a global price structure, global -- globalization much, much, much more. So from our perspective is that we integrate all this. And this is only a small step what we do initially. But what we basic are building up a model that basic are saying, how can we build out the leading global brand specific in US if you only talk about that, a leading brand in the US and create most value. So we will optimize it in the best possible way. And never starting to be saying is that we need to force ourself in this fast rollout. We will be sure that the value of TransCon growth hormone will basic take in and sell you more and more patients with more and more physicians that see the real value we provide to TransCon growth hormone.\nJesper, specific for US, will you further comments on it?\nJesper Hoiland -- Senior Vice President, Global Chief Commercial Officer\nYeah, absolutely. I mean, we are having a superior product. And, of course, we would like that to see reflected in the price that we are going to approach the market with. So just to keep that in mind, we will address the commercial market in the first place as that is the biggest business opportunity for us. And as far as we see things, it is the value that is the market leadership that we will be fighting for. So if you're saying we will not take each and every account into consideration in terms of giving it the broadest possible availability, we will certainly go for the value opportunity that we're certainly seeing with the -- we want to take so much of in.\nJan Moller Mikkelsen -- President and Chief Executive Officer\nI think this is a great way to answer it, Jesper. It actually describe what we would do with each of our pipeline product opportunities.\nDavid Lebovitz -- Morgan Stanley -- Analyst\nThank you for taking my question.\nOperator\nThank you. Our next question comes from the line of Alethia Young with Cantor Fitzgerald. Your line is now open.\nAlethia Young -- Cantor Fitzgerald -- Analyst\n", "Hey guys, thanks for taking my question, and looking forward to the next month. I guess I just wanted to talk a little bit about on the growth hormone side, kind of some of the socioeconomic -- kind of economic claims and kind of benefits to having your product versus others and how you think about balancing that as you think the price of the drug. Thanks.\nJan Moller Mikkelsen -- President and Chief Executive Officer\nSo mainly the pharmacoeconomic calculation we have done is basic not looking on different brands, but mainly focused on the benefit on being on a growth hormone treatment compared to not having the growth hormone treatment available or potential stopping earlier in a growth hormone treatment because of the high burden of a daily injection. And I think this is where we basic have done most of our claim analysis. When you compare different brands, I actually think that you should for me at least when I'm looking from thinking about the patient, the physician and payer, you need to look at what you're providing of integrated benefit related to endocrine health because this is where the social economic calculation kicks in because it's not only height, this is the entire way to having the right way to do remodeling on the body, meaning growth hormone so much will be need to distribute everywhere in the body.\nCognitive effect, which are impossible to measure in children but we know growth hormone have cognitive impact because there's also a lot of growth hormone receptor in the brain. All that is the part of why we believe it was so important for us that everyone could understand our mode of action is building on what we know that growth hormone daily treatment can give because we have the same active ingredients out there. And I think t" ]

[ "wo products on the Series 2 platform with three to four times more on the way, another great indicator of future demand. We're also incredibly proud of the xG24's performance on the important MLCommons Machine Learning and Inference Performance benchmark.\nWith integrated AI/ML hardware acceleration, the xG24 wireless SoCs provide up to four times faster processing with up to six times lower power consumption for machine learning workloads. This means even ultra-low-power wireless IoT devices can now be enhanced with machine learning capabilities. In early March, we held our 2022 analyst day event in New York. The Silicon Labs' executive team enjoyed ringing the opening bell at the NASDAQ to celebrate our 22 years as a public company and honored the achievements of our talented global workforce.\nSilicon Labs entered 2022 a 100% focused on wireless connectivity for the IoT, and we are determined to lead the industry. We're excited by the impact our solutions and technologies are having on the industry and in people's lives. I couldn't be prouder of the team's execution and the future opportunity that we see. Silicon Labs is positioned to lead and scale in an IoT market expected to achieve tens of billions of units per year in the decade ahead.\nWe have the talent, the technology, and the trusted partnerships across every major ecosystem to be a driving force behind the success of the IoT and the market leader in this exciting segment of the semiconductor industry. Thank you for your time this morning. I will now turn the call back to Giovanni.\nGiovanni Pacelli -- Senior Director of Finance\nThank you, Matt, and thank you for joining Silicon Labs Q1 2022 financial and business update. I'll now open the call for questions. [Operator instructions]\nQuestions & Answers:\nOperator\nWe will now begin the question-and-answer session. [Operator instructions] And the first question comes from Gary Mobley with Wells Fargo Securities. Please go ahead.\nGary Mobley -- Wells Fargo Securities -- Analyst\nGood morning, everybody. Let me extend my congratulations to a strong start to the fiscal year. Guys, at your analyst day on March 1, you endorsed perhaps 35% to 40% revenue growth in fiscal year '22. And with such a strong start to the first half of the year.\n", "Are you still bracketing that growth rate or endorsing that growth rate? Or might we be at or above the high end of the range? And as well, a few hundred miles to the east you is another large chip company that was somewhat cautious with respect to the different supply chain concerns, specifically over in China, whatnot. So I'm curious to know to what extent does that second quarter guidance contemplates all the macro and supply chain risks that we hear about day-to-day.\nJohn Hollister -- Chief Financial Officer\nYeah, Gary. This is John. Let me take the first part, and then I'll kick it over to Matt for the second part. But the indication we provided at analyst day was really relative to that event, we're guiding one quarter at a time.\nI will say we're quite encouraged by the strength we continue to see in the business with design win momentum up nearly 80% year on year for the first quarter and continue to enable more supply. That's really the phenomenon that's happening right now is to the extent that we can activate more supply, we can deliver upside as we have demand that is in excess of our supply at the moment. And I'll pass it to Matt for the next part.\nMatt Johnson -- President and Chief Executive Officer\nThanks, John. Hi, Gary. This is Matt. In terms of, I guess, looking at demand and supply that you mentioned, we definitely see some war lockdown pushouts out there.\nAnd as soon as those happen, we're able to reallocate to other demand because the demand is meaningfully outpacing supply. So that gives us flexibility. On the supply side of all that, we do see issues pop up. And as John mentioned earlier, the operations team has been able to respond with alternatives or recover.\nSo definitely seeing both of those, but also seeing the team being able to navigate both of those.\nGary " ]

[ " results we have seen in our 30-year history.\nUCT ended 2020 with a record total revenue of $1.4 billion, record operating margin of 11.3% and record EPS of $2.80. While significantly outgrowing the overall WFE market by 11%, to reach these extraordinary milestones in a year for all the challenges, we continuously adjusted to the changing work environment while staying focused on meeting customer demand and delivering strong return to shareholders. The fourth quarter benefited from ongoing strength in foundry and logic as well as increased demand in memory as customers plan for expansion and equipment investment in 2021 and beyond. Both our product and service divisions saw increased engagement across all segments of the market, resulting in another quarter of growth and improved operating leverage. UCT remains solidly on track to outpace the accelerated growth of our served markets again in 2021.\nTechnology advancements within our data-driven economy continue to fundamentally change how we live and work. This digital transformation is accelerating the adoption of semiconductor growth drivers such as artificial intelligence, high-performance computing, IoT and 5G. Capital intensity at the leading edge is increasing to support a more diverse set of end used markets which provides confidence for strong multi-year WFE demand. Our business is well balanced and both our product and service businesses have broad exposure across all device types. This bodes well for UCT as we continue to engage in the early stages of customers' technology roadmaps.\nA key component to UCT delivering on its long-term growth strategy is the acquisition of Hamlet. The pre-close and integration planning process is going very smoothly and we are excited to begin operating as one company after closing likely early in the second quarter. Adding Hamlet to our growing suite of vertical capabilities will support our customer partnerships with a significantly broader higher value, higher margin portfolio of market-leading product solutions. You will recall that Hamlet's components are used primarily within our current gas panel product line as well as for gas distribution throughout semiconductor tools.\nIn addition, gas delivery is a significant element of the sub-fab infrastructure within chip making facilities, providing an additional platform for growth. By leveraging UCT's solid customer relationships and global operational footprint, we see a sizable opportunity to grow Hamlet's 5% share of a $2 billion market.\n", "UCT's new facility in Malaysia remains on track to begin initial production in the third quarter this year. This state-of-the-art facility will enable us to better serve and bring value to our local and global customer base. The facility enables us to provide additional capacity ensuring business continuity to meet ongoing demand.\nThere has never been a better and more opportune time to be a manufacturing leader in the semiconductor industry. Our customers and their customers are well positioned at the forefront of this technology renaissance and we see our existing partnerships expanding with them as they hasten to advance their technology roadmaps.\nOur comprehensive portfolio of products and service offerings together with our strong fiscal discipline and resilient business model will drive continuous long-term performance and profitability with the goal of returning even more value to our shareholders. Our guidance for the first quarter reflect an increase in business across our entire customer base. Industry sentiment backed by our internal market analysis project momentum continuing through 2021.\nBefore handing the call over to Sheri, I want to again thank our employees and our suppliers for their incredibly hard work this past year and we look forward to again outperforming the markets we serve in 2021.\nAnd with that, I'll turn the call over to Sheri to review our financial performance.\nSheri Savage -- Chief Financial Officer\nThanks, Jim, and good afternoon everyone. Thanks for joining us. In today's discussion, I will be referring to non" ]

[ "ith F. Marks -- Chief Executive Officer\nYeah, so listen, it's a competitive market in China, and we know that. We're also watching really the credit and liquidity situation of the major developers. We're managing effectively through that. Perry and the team are doing a really good job there. And we're deploying IoT and Otis ONE there significantly, again, to help us on conversions.\nSecond half is going to be a little tougher compared for us, in China, because China came back so quickly post COVID in the second half of 20. So we're going to watch all those factors. But the segment in China, the New Equipment segment is going to grow mid single digits, it's the largest market in the world. Even despite some of the cooling measures that are still in place, we think the market is more balanced and we are going to continue to perform there.\nRahul Ghai -- Executive Vice President and Chief Financial Officer\nSteve, there's Just a couple of other things to add related related to China. Really strong start to the year in the market. As Judy said, we expect kind of mid single-digit growth growing into the year, and we think that market growth could be a little bit north of that. So a little bit positive in China than we were at the beginning of the year. And the other thing is that despite all the conversations around property market cooling down, the area under construction in China, the construction area is actually up 11%. So we're seeing strong momentum in the market in China.\nSteve Tusa -- J.P. Morgan -- Analyst\nRight. Okay, thanks.\nOperator\nYour next question is from the line of Jeff Sprague of Vertical Research.\nJeffrey Sprague -- Vertical Research -- Analyst\nHey, two questions from me if I could. First, I totally understand on kind of the accelerated execution out of the backlog, although the backlog managed to grow despite that. I just wonder if you could speak a little bit, since we don't have a ton of history to go on. Your backlog currently relative to your forward sales expectation, is it on the low medium or kind of about right, relative to what you'd expect as you kind of project existing backlog in the future revenue conversion?\nRahul Ghai -- Executive Vice President and Chief Financial Officer\nSo, Good morning, Jeff. So is your question that is our backlog sufficient to drive growth sales in the back half, is that you're trying to tell.\n", "Jeffrey Sprague -- Vertical Research -- Analyst\nWell, yeah, I mean clearly in dollars, it is. I'm just thinking about the conversion of backlog to revenues, right. Its going to be all over the map. I would say, right, depending on the type of the project and the like. So just when you think about your revenue guidance for the year, would you say this backlog gives you kind of above or below average comfort in that revenue forecast?\nJudith F. Marks -- Chief Executive Officer\nYeah. Listen, Jeff. This gives us, I would say above average confidence when we -- when we met you and everyone last February at our Investor Day, Rahul and I and the team said, our goal was to end '20 with a stronger backlog than we came in, and we did that. We've now, obviously, grown that backlog in '21 in the first quarter. And we've got sufficient backlog now to see us through our, and that's what gives us confidence in our outlook. What we need to do is keep growing that backlog as we end '21 to position us for '22, and that's where we already have the team focused.\nRahul Ghai -- Executive Vice President and Chief Financial Officer\nYeah. And typically, we expect our backlog to drive maybe two thirds of the revenue in the year, Jeff, that's kind of our typical standard. And this year, it's going to be north of that. And that's part of the accelerated backlog conversion that we've been talking about is that this year we expect that revenue conversion to be higher. So, and that is where it is really positive to see backlog growing in the first quarter because we did have accelerated backlog conversion over Q1 of last year, driven by better execution in the field to Nigel's question, and higher shipments out o" ]

[ "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 " ]

[ "that we want to accomplish there and there is a pretty well-stocked pipeline of ideas and IP and test vehicles, which we're investing in to kind of continue to grow that. So much as -- I'm not putting a number on it, we -- you'll be able to see from our comments that we're very excited about where that can take us in the medium term.\nChristopher Rolland -- Susquehanna International Group -- Analyst\nOkay. And I guess kind of tying into this as well, can you talk about opportunities that you have captured in phones today for some of these products, including your power product, but also things around cameras and the possibility to broaden into new devices as well, whether they be tablets or laptops or perhaps some other devices?\nJohn Forsyth -- President and Chief Executive Officer\nYeah, absolutely. So when you look at, in particular, those areas you talked about, which constitute a lot of our high-performance mixed-signal business, so on the camera side. Obviously, that's focused on smartphones right now. We've seen a growth in the attach rate. I think that what we're doing there is highly applicable to other products that contain cameras. Obviously, what we are doing is kind of stabilization and focus-related. We've talked about that elsewhere. So any -- it'd typically be a camera that moves around, rather than one that's fixed somewhere. So we'd certainly like to find ways of expanding that -- the reach of that technology into other products. In the power space, so we launched during the quarter, the power conversion and control IC that's in a recently launched flagship smartphone. So there's one of those pad device right now that's custom silicon, obviously, and we are very focused as a team on serving our biggest customer, first and foremost, and kind of continuing to execute on that is priority number one for the team.\nBut it's also clear from everything we're saying that we're making a lot of investment in this area and we really believe we can be innovative around the battery. So that certainly represents a a great opportunity to broaden and expand our business. And I think you can certainly think some of the other devices that you mentioned such as tablets and laptops and so on could certainly be places we would seek to land some of that technology as well.\nChristopher Rolland -- Susquehanna International Group -- Analyst\nThanks again. And congrats, Thurman, again.\nThurman K. Case -- Chief Financial Officer and Vice President, Finance\nThank you.\nOperator", "\nNext question from the line of Ananda Baruah of Loop Capital. Your line is open.\nAnanda Baruah -- Loop Capital -- Analyst\nHey, thanks guys, good afternoon, for taking the questions. Congrats on the strong results and, Thurman, congrats as well, certainly. Two, if I could. One may have [Phonetic] to be a clarification. But in the Shareholder Letter, when you guys spoke about accelerating -- in the laptop space, accelerating ahead of your strategic objectives, is that a general comment or is that what you're sort of seeing as we go through the fall here? Would love to get context there. And then I have a quick follow-up as well.\nJohn Forsyth -- President and Chief Executive Officer\nThank you, Ananda. That comment relates specifically to the growth in our laptop business and what we're communicating there is that when we set out to engage customers in the laptop space, outside of our largest customer, where we already had business, we were principally focused on what we see as an emerging opportunity to sell boosted amplifiers into those devices. Those devices are getting thinner and thinner, they are moving from an HDA-based architecture to a Soundwire-based architecture. All of that means that they are going, in some regards, to look a lot more like smartphones architecturally than they have in the past. And so it's a very close adjacency for us. We've got a huge investment in boosted amplifiers for smartphones, really well-established leadership there. And so we formulated a plan to go after that market.\nThat's really where those strategic objectives lie that we r" ]

[ " interfaces in all the aspects of the network, from our antennas, and cabling, and connectors to our small cell, remote radio heads, metro cell, and DAS solutions. Today we are supporting the US advanced wireless industry initiative, which is building for four city-scale 5G wireless research platforms with our products. These platforms will provide opportunities for fundamental research in areas such as millimeter wave, dynamic spectrum, and new 5G architectures.\nIn closing, I continue to believe that the new CommScope is better positioned than ever to help shape the future communications connectivity. Without question, our portfolio of industry-leading products coupled with our strong customer relationships and talented workforce give me great confidence in our long-term growth potential. I'm highly confident that the actions that we're taking in 2019 to reposition our organization will better enable CommScope to achieve accelerated financial returns as capital spending improves from our largest customers.\nAnd with that, we'll open the floor up for questions, and I'll turn it back over to you, Charlie [Phonetic]\nQuestions and Answers:\nOperator\n[Operator Instructions] Our first question comes from the line of George Notter with Jefferies. Your line is now open.\nGeorge Notter -- Jefferies -- Analyst\nHi, guys. Thanks very much. I guess maybe I wanted to start by talking about the Network and Cloud piece of the business. Obviously that's been a struggle for you guys. But can you talk about what you think the real kind of impairment in that businesses is in terms of its ability to drive free cash flow and profitability. Obviously a lot of trends you guys talked about some of them, DAA, you've got virtual CCAP out there, you've got a competitor selling their cable OS product in an all you can eat model, I mean, what do you think is really just structurally impaired versus the business that comes back and kind of rebound in terms of transitory issues.\nMorgan C. S. Kurk -- Executive Vice President and Chief Technology Officer\n", "Okay, thank you. Well, this is Morgan Kurk, I'll try to answer this from a structure from what the market looks like in general. So historically, this market for the past 20 years has been integrating all of its core functionality into a single product called CCAP or centralized CAP. This has now being disaggregated, and we have been a player in the aggregation of it, and we expect to be a player in the disaggregation of it. The disaggregation is as far as we're concerned, taking the code that we have had on our own equipment and migrating it so that it can run on traditional servers and run through traditional data network. While moving the parts that cannot run on those types of servers out toward the end of the network in something, as you may know, Remote Fi.\nWe believe that the fact that we have been writing this code for the past 20 years supporting it, featuring it, and are now porting it to these two ends, gives us a unique advantage in having something that is very hardened and something that is very featurish. We move out to the remote side of the world, where we have a significant position in all nodes deployed around the world. We have a strategy, both taking the hardware that we used to have centralized repackaging and putting it into these remote nodes along with our amplifier equipment and power supplies and packaging and giving operators a seamless upgrade path for today's DOCSIS.\nIn addition, we have the opportunity to enhance those remote nodes to support new features like Extended Spectrum and full duplex DOCSIS or even higher amounts of of capacity in future. All of this plan, which allows that migration is really what CommScope brings to the table. It has capital preservation for our end customers, it gives them an opportunity to expand and grow as they need, and we think that vast experience and the market position is something that will be critical as we move forward. We expect to play in both the head-end and in the remote-side, and we expect to win in both.\nGeorge Notter -- Jefferi" ]

[ "rtant to us to become more of a pure electric utility, and we would expect that to provide us an even stronger balance sheet capacity with the credit rating agencies as well.\nShar Pourreza -- Guggenheim Securities -- Analyst\nThat's great color. It actually also takes us to my second question, which was just in line of the upcoming IRPs as the resource costs start shifting and we have seen this more and more with solar and wind displacing fossil resources through cost savings. Do you feel your jurisdictions are well positioned for that transition? And is anything currently being reflected in the 5% long-term growth rate that you're envisioning?\nSean Trauschke -- Chairman, President and Chief Executive Officer\nYes. So what we've laid out in our five year capital forecast does not include any generation needs as a result of the integrated resource plan. So that would all be incremental. As far as what you're seeing -- what you're pointing to in terms of trends and where things are going. I would say that we've been on that trend for a while. We built the first wind farm and first solar farm, and we've been very active in the transmission front. And I think you should expect us to be engaged in all those fronts going forward. As we look at our IRP, yes, I don't think there's any new information there that we do see prices come down. The economics are certainly changing. And our view is we're going to be focused on affordability, reliability and resiliency. And that's how we think about a lot of our investments, and I don't see any reason generation would be any different.\nShar Pourreza -- Guggenheim Securities -- Analyst\nPerfect -- thanks taking my questions.\nSean Trauschke -- Chairman, President and Chief Executive Officer\nThanks constantine\nW. Bryan Buckler -- Chief Financial Officer\nThank you\nOperator\n[Operator Instructions] Next question is from the line of Insoo Kim from Goldman Sachs your line is now open.\nInsoo Kim -- Goldman Sachs -- Analyst\n", "Hi good morning guys how are you -- morning. My first question is just from a -- coming out of Winter Storm Uri and thinking about resiliency and reliability in the state going forward to mitigate this from happening, whether it's from OGE's perspective or just your conversations with various stakeholders in the state. What are some of the conversations that are taking place now on, whether it's on the T&D side, generation side, what potential investments may be needed?\nSean Trauschke -- Chairman, President and Chief Executive Officer\nYeah. Insoo, great question. And I'm actually really pleased you asked this question because it gives me the opportunity to maybe brag a little bit. I think what's important here, well, every single one of our plants generated megawatts every day during this event. So we had put the winterization packages on the Mustang Energy Center when we built that. We put -- we winterized our two big combined cycle plants. And our customers had minimal disruptions. And so coming out of this, you always have lessons learned. I do think that we're certainly going to take a hard look at our supply chain, specifically, if you think about gas, to make sure that we understand where the gas is coming from. And as that facility winterized such that it can be ready in events like this. But we certainly saw some things with that extreme weather, how we -- in the event that we were going to receive a notice from the SPP to shed load, how we would do that. And we've -- there's always learnings there. But I would tell you that the fleet performed just great. And we were prepared. We've made those investments. And I think when you live, work and play in the community, you kind of have a higher calling to make sure that you're accountable and ready to go. And I'm really proud of the team here because they work.\nInsoo Kim -- Goldman Sachs -- Analyst\nAlright thanks for that -- My other question is just with guidance for this year. What are some puts and takes or opportunities that could help you improve within the range for 2021?\nSean Trauschke -- Chairman, President and Chief " ]

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

[ "f driver assistance electronics and the electrification of more car models.\nThe consumer market returned to quarter-on-growth with an 8% sequential increase in line with expectations. IoT wearables continued to be an important driver for growth. Although, some supply chain constraints and expected product pipeline changes continue to be dynamic in this emerging product categories. Our overall product and customer pipeline for devices and advanced SiP solutions in the consumer market remain strong. We are confident that the end market for IoT devices will continue to be a growth area for Amkor.\nRevenue in the computing end market set a new all-time quarterly record with sequential growth of 2% and a year-on-year growth of 30%. We experienced good performance in all computing applications and the strengthening of our project pipeline. We expect the computing market to drive further growth for outsourced assembly and test services and we anticipate growth in multiple applications ranging from personal computing to infrastructure and data centers. Over recent years, we have established a proven technology portfolio with required manufacturing scale. And Amkor continues to invest in capacity and technology for this market.\nWith a technology base ranging from larger body size flip chip, multi-chip modules [Indecipherable] and High Density Fan-Out we were able to offer customers a complete solution in this domain. With growing demand for high-performance package technology, we strengthened our engineering teams to develop specific solutions together with lead customers. These engagements allow us to introduce key enabling technologies, for example laser system bumping and high conductive thermal materials to resolve technical challenges.\nThe new technologies enable us to capitalize on opportunities not only in the computing domain, but also to extend these capabilities in other areas like automotive. Finally, our test business grew 15% year-over-year in Q1 as we increased the scope of our test services for 5G communication and system level testing and continue our focus on expanding test attach rate. Strong demand in the quarter resulted in good factory utilization and we saw utilization improvement especially in our Japan factories.\n", "Our wafer-level and flip chip production lines were highly utilized and utilization rates in our lead frame and wire bond factories further improved with the recovery in the automotive and industrial markets. The high factory utilization contributed to a solid 20% gross margin for Q1. To prepare for future growth, our manufacturing organization is expanding clean room space in our facilities in Korea, China and the Philippines and we are further ramping our new T6 factory in Taiwan. We also have been watching closely the growing interest on activity in US semiconductor manufacturing and the new US forward looking investment policies. We are encouraged by efforts to fund the chips for America initiatives and are actively exploring to be part of the US semiconductor manufacturing supply chain.\nCapex for the year is expected to be around $700 million, the capital intensity in the low teens. Major investments in 2021 are planned for wafer level and flip chip technology, SiP capacity, test capacity and the facility expansions I've mentioned previously. We also plan specific investments to support our industry for that O program, enabling an intelligent factory framework to improve quality, decision making speed and asset utilization.\nNow, let me turn to our second quarter outlook. We are expecting another solid quarter, with revenue of $1.34 billion at the midpoint of guidance. This represents a year-on-year increase in Q2 of 14%. Short-term capacity constraints for wafers and substrates are expected to impact parts of the semiconductor supply chain, especially in the automotive market, limiting further growth in Q2. For the full-year 2021, we expect continued strength in all growth areas, particularly 5G communication and computing. We remain confident in our strong market position and the overall dema" ]

[ "f you could talk about those, and specifically what those kinds of products, I'm thinking is there something outside of the regular hardware upgrades that we see maybe somewhere on the software side, that could be a catalyst maybe for growth within maybe some of the TAM expansion opportunities like the Type 2 non-intensives, or gestational diabetes or anything like that. So is there anything we're kind of not thinking out-of-the-box here from the normal hardware that will be important in the coming 12 months or so?\nJereme Sylvain -- Cheif Financial Officer\nI don't think that there is anything that you guys are missing in terms of the prepared remarks and speaking to some of those systems. The one thing that we certainly are excited about, has to be the Omnipod 5 product in the back half of the year, and we'll let Insulet speak to the exact timing of when we're ready to put that product into the marketplace, but having connectivity into a product like that is something that we're very excited about and believe that they'll have success with and will have success with as well.\nI think with respect to the whole Type 2 population and the opportunity there, we couldn't be more bullish on the opportunity that sits in front of us, and I think by the day we learn more-and-more of that increases that bullishness for us in the confidence that there's going to be some real opportunity there to create value coming from it, and you're going to see a study a little bit later this year, mid-year at some of the mid-year society meetings, that's going to start to really lay out the benefit of using CGM relative to BGM in this Type 2 population, particularly the non-intensive population that just demonstrates the sort of impact we can have on patients that are on basal only and that's a 4 million patient population in the U.S.\nSo I think that sort of data starts to really accumulate in favor of opening up a whole another market segment that doubles the existing core U.S. intensive market today that we're very excited about. So you'll see that data here, mid-year, but I think all of it starts to point to the fact that this Type 2 space is going to open up in a significant way and we are well-positioned to take advantage of it.\nOperator\nAnd that concludes the question-and-answer session. I will turn the call back over to Kevin Sayer for final remarks.\nKevin Sayer -- Chairman, President and Chief Executive Officer\n", "Thank you, and thanks everybody for participating.\nAs we wrap up our call today, I want to take a minute to acknowledge some very important recognition that Dexcom received this week. Forbes recently published their 100 company list of America's Best Employers for Diversity. Dexcom was honored to be Number 66 on that list. While we consider this a perpetual journey, we're very happy to have been recognized for some of the work that we've done so far.\nAs far as our outlook on the business going forward our great quarter fuels, our continue believe that the best is yet to come. I recently caught up with a friend who is a longtime healthcare industry executive and the gist of his message to me was very simple, everything important in diabetes care is going to revolve around CGM. For example, there are numerous instant delivery devices and algorithms available for automated insulin delivery, but there is only one CGM commercially capable of delivering the patient experience and outcomes that we've all envisioned for a very long time, and that's only the beginning.\nThere are incredible new compounds, treatments and program stepping forward for the treatment of Type 2 diabetes and we are very confident that the right CGM experience will become an integral part of all these solutions and we haven't even started talking about the difference we can make as part of a pre-diabetes program. We've never been more excited and engaged in our opportunity than we are today.\nThank you again everyone and have a great day.\nOperator\n[Operator Closing Remarks]\nDuration: 58 minutes\nCall participants:\nSean Christensen -- Director of Corporate Affairs and " ]

[ "here is a tremendous uncertainty now in the near term with respect to the global economy, but especially our economy here in the United States because of this virus. So I can't pretend or begin to anticipate what that might mean for us. But setting that aside, I believe that we have today adequate capital to continue to invest organically in the company's business -- inorganically, I'm sorry. Okay. I'm going to get to that. Continue to invest organically in the business.\nAsked for inorganic. About 15 months ago now, we made a conscious decision to develop a corporate development function, which as evidenced by the acquisition of FSE was -- I think a wise investment and a successful investment. We're very, very happy with, with the first source electronics. We -- notwithstanding you know the downturn here in the markets and the contraction in the company's business somewhat, we intend to -- tend to continue to make this investment in corporate development to explore inorganic activities. If we are so fortunate as to find the right opportunity with the right set of products, the right customers, the right cash flow profile, we will consider how best to finance that opportunity at that point in time. Of course, it will depend on the capital markets, the construct of the cash flows, etc. etc., but I believe that if we find the right, the right opportunity, the right fit for our company, the right set of cash flows and if the capital markets are open I think that we have a fair shot at getting it financed. And so we're going to continue to pursue corporate development opportunities.\nChris Howe -- Barrington Research Associates -- Analyst\nThanks, Tim and, Pat. Appreciate all the color. I'll hop back in the queue for now. Thank you.\nOperator\nOur next question comes from the line of Mike Shlisky from Dougherty & Company. Your line is open.\nMike Shlisky -- Dougherty & Company, LLC -- Analyst\nGood morning, guys.\nPatrick Miller -- President, Chief Executive Officer\nHi, Mike.\nMike Shlisky -- Dougherty & Company, LLC -- Analyst\nHey there. I was wondering if you can give us a sense of the seasonality, you think of the truckload schedules in 2020, perhaps maybe just in general and then also, have you seen any changes in the last few weeks or so and the order patterns or the build schedules based on the COVID-19 situation?\nPatrick Miller -- President, Chief Executive Officer\n", "You know as far as our expectation, initially going into the year 2020 for truck builds were that there was going to need to be some correction in the builds which unfortunately started in earnest in the fourth quarter and continued in early in the first quarter and we -- our expectation, and they were communicating clearly were to reduce build rates down to lower daily build rates and allow us to align our daily build rates with theirs. That has -- the intent was to correct the inventory levels and whatnot resulting from lower order rates and so that is really how we expected the year to proceed and clear about the second half of 2020, but that's how we expected the first half.\nAnd you know there haven't been any large impacts related to the COVID virus from the North American truck build at this stage that we've seen related to order patterns. So the orders have been a little bit erratic in the first quarter, but not related to anything other than correcting for the market dynamics. So I think that is -- that is to be seen. I mean obviously to have been changing daily here over the last week or two in North America and we will adapt as required to what their needs are. Globally, interestingly, we have continued to see orders along the ways that we have planned in our other operations, which are support a couple of different other industries in addition to some of the commercial trucking but as well as construction and others. So -- so far we've not seen any knee jerk reactions. Now what's going to happen over the next few months and few weeks, you know, is uncertain.\nMike Shlisky -- Dougherty & Company, LLC -- Analyst\nOkay. Wanted to just switch over quickly to so" ]

[ "It was one of the greatest humanitarian acts in history. Pondering an imaginary Yiddish-speaking place produced \"The Yiddish Policemen's Union,\" says Michael Chabon. At the beginning of World War II, as the Nazis tightened their grip on Europe, the U.S. government allowed millions of Jews to resettle from their homes in Poland and Russia to southeastern Alaska, along the panhandle. Two million Jews had died at the hands of the Nazi scourge, but millions more were saved as the Federal District of Sitka, Alaska, became the new Jewish homeland -- all the more important when the fledgling State of Israel went down to defeat in 1948. However, 60 years later, Sitka is about to be returned to local jurisdiction, and the island's Jews -- including a noted detective, Meyer Landsman -- are wondering where to go next. The Jewish people, forever rootless, will have to wander some more. Landsman's got other problems, too. He's rootless himself, biding his time in a seedy hotel. There's the body that turned up in a nearby room, a onetime chess prodigy who appears to have major connections with some big shots -- machers, in the local Yiddish lingo. There's his ex-wife, now his boss -- at least until the department is disbanded -- and his partner, a half-Jewish, half-Tlingit named Berko who's far more responsible than Landsman. And there are a host of old enemies with long memories, particularly when Landsman decides to root around the dead chess player's case. Landsman's world is fiction, of course, a product of Michael Chabon's imagination. Chabon's new book, \"The Yiddish Policeman's Union\" (HarperCollins), combines Landsman's hard-boiled detective's terrain with the landscape of alternate history, one in which world events take a startling turn. The story is rooted in fact, the Pulitzer Prize-winning author Chabon (\"The Amazing Adventures of Kavalier & Clay\") observes. Chabon had written an article about the decline of Yiddish, and the reaction to the piece -- some of it very negative -- \"got me thinking about ... a possible, but nonexistent, imaginary Yiddish-speaking place in the modern world,\" he says in an interview at CNN Center. ", "In the article, he noted an actual plan by Franklin Roosevelt's Interior secretary, Harold Ickes, to create a refuge for European Jews in Alaska, still 20 years from statehood. In reality, the plan was squelched thanks to the opposition of Alaska delegate Anthony Dimond, but in the \"Yiddish Policemen's\" world, Dimond is conveniently killed off and the plan goes forward. Chabon's Federal District of Sitka is a land of tall apartment blocks and grimy streets, as if \"Hong Kong had moved to the other side of the Pacific Ocean,\" he says. The novel is peppered with clever conceits. The book's black hats, as in villains, are actual \"black hats,\" a slang term for ultra-Orthodox Jews. The characters are fond of Filipino doughnuts, a twist on the Jewish taste for Chinese food. The place names of Russian Alaska are an apt companion to the Eastern European surnames of Chabon's Jews, and then there are throwaway bits -- such as in the Sitka of 2001, Orson Welles did release a version of \"Heart of Darkness.\" Doing a genre novel -- or several at once, as \"The Yiddish Policeman's Union\" is part detective story, part alt-history, part modern Jewish folktale -- isn't considered the natural turf for a so-called literary writer like Chabon, but the author -- who has been vocal in support of genre fiction -- makes no apologies for the work. \"I only ever try to write in genres that I love ... I love hard-boiled detective novels, I love fantasy, I love science fiction,\" he says. \"It feels like a natural impulse to want to integrate that passion that I have as a reader into my writing. I didn't see" ]

[ "g on. We've got relationships with 80 universities where we're not necessarily steering that technology work, but we are participating in it.\nAnd as we see those technologies advance and look -- and get higher potential, have a higher potential of those things, we would look to try to bring into the portfolio. So we've got -- what I'd say, we've cast a pretty wide net around the technology space, recognizing that it's requiring some level of evolution, if not breakthroughs and technologies, for them to be successful. And so since you can't really plan for that, we kind of keep a finger on the pulse of a lot of different technologies with the intent then to, as they look more promising, kind of to bring them into the emerging and then commercial technology space. And so that's the work that this new group will be focused on.\nAnd again, it's -- we'll complement what we're doing in the carbon capture and storage. We've got the biofuels work that we've been doing, and we've got the process technology work that we've been doing. And a lot of those things overlap with one another. Certainly -- and of course, that then also has hydrogen and the process technology work we're doing and the CCS work together have a lot of overlap with potential for hydrogen generation.\nSo I'd say that's the space that we tend to be working on from a technology standpoint. And then with respect to the spend, this is a long-term focus area for our facilities and businesses. And you can see from the progress we've made with reducing greenhouse gases, it's not something new. It's something we've been after year after year after year.\nAnd those opportunities continue to present themselves. And I mentioned in my prepared remarks that with the new organization and the new processes that we've put in place, we've got more direct and better line of sight to those opportunities so that we can make sure they're getting funded and moving forward. And that's all built into our plans and it's built into our 2025 objectives that we've laid out.\nDevin McDermott -- Morgan Stanley -- Analyst\nGreat. Thanks. Very helpful detail. It sounds like a lot of exciting opportunities.\n", "My follow-up, hopefully, a quicker one here. As we think about just the capital spending range over the next several years, the $20 billion to $25 billion and contextualize that with the analysis that you had in the slides on the amount of cash flow contribution in 2025 from some of the new projects coming online, I was wondering if you could just help us pinpoint, what level of spend that you think is required in order to just hold cash flow across the business flat over a multiyear period, understanding it's kind of higher than the 2021 spend, somewhere within that $20 billion to $25 billion? Any way that you can fine-tune that estimate a little bit in terms of the maintenance capex, the whole cash flow steady?\nDarren Woods -- Chairman of the Board and Chief Executive Officer\nYeah. Well, I think the way we tend to look at it is how do you maximize the value. And we don't have an objective of trying to hold volumes or any other metric. It comes back to if -- what are the projects that we have available to us, the investments, what are the returns that we think we can generate from those investments, what advantage do they have versus industry and within our own portfolio, how robust are they to the price environment.\nSo I would say that, as we look to build up our investment profile, it's understanding what the value of those investments are and then putting those in the context of the constraints that we're operating under to see which ones get funded and how we prioritize them. So I would say, in 2020, one of the things, given the impacts of coronavirus and draw on our balance sheet, is we really prioritized and focused on the highest value first. We've still got a really deep portfolio that we'll continue to advance as the circumstances allow and as the market allows, and that's how we're going to kind of go forward. And that range that we've given in the outer years is indicative of what we" ]

[ " ahead.\nMatt Cost -- Morgan Stanley -- Analyst\nHi, everyone. It's Matt on for Brian. Thanks for taking my question. Can you just provide a quick update on Call of Duty Mobile and how we should think about growth vectors to the game in the second year now? And any early thoughts on the launch in China? Thanks.\nRob Kotick -- Chief Executive Officer\nYeah. Matt, it's Rob. Thanks for the question. Look, I'd say, overall, we see a ton of opportunity ahead on mobile.\nI think it's really important for us to step back and look at the fact that quality mobile in the West has only been live for about actually a little less than a year and a half. And in that time period, we shared this data, but we quickly scaled over 300 million downloads and Daniel had also mentioned, in the fourth quarter, we delivered our best quarter yet. And obviously, a clear sign that our teams focus on gameplay, new seasonal content and just driving engagement overall is driving strong results for us. But this is certainly just a point in time.\nAnd when you step back and look at the biggest games in the West, they continue to scale at the 3-year mark and well beyond in many cases. So we believe we have a lot of headroom in regions around the world to grow this business. And the beauty of COD Mobile that allows us to reach new players in markets where console and PC may not be as well developed. And we've seen tens of millions of new players in regions like Latin America, India and beyond, where we're seeing potential for a lot more upside.\nAnd looking ahead for this global community, of course, we're going to take our endgame seasons and content in advance to another level for our community. And I also see a lot of opportunity press at the local market level to drive local initiatives to make Call of Duty even more relevant in those local markets. And I want to go back and mention one another thing, which I think I mentioned on a previous call, which is it's really important to note that all of this right now is accretive to our overall franchise success. When we look at registered players who play both on mobile and on console or PC, these players show significantly higher engagement and player investment than other groups.\n", "And so again, it's just proof that I think the ecosystem is working really, really well together. Now you also asked about the recent release in China by Tencent, and it is early, right? But the game is off to a great start. We've seen tens of millions of downloads in the first month, a lot of good reception early on. And we do think this is going to be a meaningful contributor to our overall mobile results as we move forward.\nAnd as I step back, I'm just really excited about our ability to now grow our brand further on a global basis by being in such a massive, massive market. And so what I -- the way I'd sum it up is that it's been a great start on mobile, but it's just that. It's a great start. Mobile is a critical long-term growth driver for Activision.\nAnd we are definitely taking a long-term view of the platform and the opportunity. We're hiring aggressively to make sure we're well-positioned to create the best possible mobile experiences for our community and I think importantly, as we project even further out, making sure we have the ability to expand to mobile, the very best of what's working in the quality ecosystem, which I think presents yet another layer of opportunity for us in the years ahead. Thanks for the question.\nBobby Kotick -- Chief Executive Officer\nAll right. Thank you, everyone. We really appreciate your interest and participation today, and we look forward to hopefully seeing you either at BlizzConline in a few weeks or in-game somewhere. Thanks, and have a great day.\nOperator\n[Operator signoff]\nDuration: 67 minutes\nCall participants:\nChris Hickey -- Senior Vice President of Investor Relations\nBobby Kotick -- Chief Executive Officer\nDaniel Alegre -- President and Chief Operating Officer\nDennis Durkin -- Chief Financial Officer\nTyler Parker -- KeyBanc Capital Markets -- Analyst\nRob Kotick -- Chief Executive Off" ]

[ "ly working on the issues with our suppliers and believe we will see progressive improvement as we move through the next few quarters. Overall, for calendar year 2022, we expect to deliver strong across-the-board revenue growth. On the demand front, we are seeing continued momentum in wafer fabrication equipment spending.\nWe believe that spending in calendar year 2021 ended consistent with the mid-$80 billion estimate we provided on our last call. Strength was broad-based, with NAND, DRAM, and Foundry/Logic all growing double digits. As we look to calendar year 2022, there are multiple themes underpinning our view for continued WFE growth, including powerful in-market demand trends, rising device complexity, strong semiconductor industry operating profitability, and regional government support and incentives. In end markets, the technology landscape continues to build, not only on the prevalent drivers of AI, IoT, the cloud, and 5G but also now, along another vector, as advances in virtual and augmented reality lay the groundwork for the metaverse over the coming decade.\nImmersive gaming experiences will be a primary driver of metaverse development and adoption, and I've spoken on prior calls about how advanced processors and memory devices for gaming are favorable for WFE demand due to both leading-edge performance requirements and semiconductor content growth. Across the semiconductor industry, we see more than 20 new fabs being built, and customers have already announced significant capex increases for the year. Consequently, we expect 2022 WFE spending to be in the $100 billion range, with strong growth across all segments. We believe that our performance in 2021 has strengthened our ability to win in the robust demand environment we see ahead.\nWe launched innovative new etch and deposition products, gained market share in key technology inflections, and rapidly grew our installed base. On this last point, our customer support business group continues to exceed expectations. Our chamber count grew approximately 13% in calendar year 2021 to approximately 75,000 units. Our revenue per chamber, which we highlighted in our 2020 Investor Day as a key growth objective, increased nearly 24% year on year in 2021, or nearly twice the growth in chamber count.\n", "We expect calendar year 2022 to be another strong growth year for our CSBG business. Our large and growing installed base also adds immense value to our product innovation process. The high volume of wafers running on our installed base every day enables us to detect newly emerging challenges more quickly and accelerate our cycles of learning, both of which are critical in an era of increasing device and manufacturing complexity. On the product front, 2021 was a year of significant milestones for Lam.\nTo highlight just a few, our Vantex dielectric etch system became the fastest ramping new etch product in Lam history. Built on our groundbreaking new Sense.i platform, Vantex helps customers reduce costs by enabling higher etch rates and improving fab footprint efficiency, while new process capabilities extend our technology leadership in high aspect ratio etch. We expect continued growth in Vantex shipments in 2022, with overall revenues from this product roughly doubling year over year. Our Vector DT product for backside deposition achieved process tool of record status at all customers for 3D NAND devices with more than 200 layers, further demonstrating our leadership in 3D scaling enablement.\nWe achieved several important leading-edge wins with our selective etch, strip, and surface treatment solutions, including applications for gate-all-around in the Foundry/Logic customer and our first selective etch win in DRAM. As device complexity increases across Logic and Memory devices, the need for angstrom-level precision is driving greater adoption of Lam's selective etch solutions compared to conventional wet etch methods. This should enable selective etch revenues to double this year as customers adopt our innovative suite of products for current leading-edge applications, " ]

[ " 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" ]

[ "Chief Executive Chairman\nFrank, good question. I would say the businesses that are still strong on order book. Packaging continues to be strong. Our volumes in second quarter were up 5% year over year, without some logistics constraints could even have been higher than that.\nIndustrial electronics for big telco 5G data centers has been strong. Pharma incipients and Dow DIS continues to be strong. Obviously, United States, Canada, we expect to still be strong. India has shown good strength.\nSo I think that's going to continue. And I think China will come back in a big way in third and fourth quarter. We're seeing between 4% and 5% GDP outlooks in China. If you look at things that are steady to where we were in the first, second quarter, infrastructure continues to be very steady.\nAutos, even though autos have had issues with chip supply, we still are looking at year-over-year unit build and improvements in the 2023 forecast on auto. So I think as we get through chip supplies, we'll see that move. Right now today, our tier OEMs, as they get delays in orders, we see that roll through, but we're managing that. Industrial markets, China has picked up in construction and residential housing and EVs pretty strongly because of programs supporting that.\nSo we see that. And I'd say the industrial markets are coming, but they're lagging that a little bit. Oil and gas is up. So we saw a lot of ethylene oxide derivatives into oil and gas, drilling and cleaning up natural gas.\nSo that's up -- gas production in the U.S. is up to 97 Bcf a day from 95, and I think it's headed to 98 or higher. Residential housing, I would say, the urbanization, I don't think is as big or as we continue to see commercial construction and multiunit construction tends to be strong. Single-family homes and home resales are slowing a bit with the higher mortgage rates.\nBut I think that commercial construction side still looks good. And then we keep an eye on single-family home unit builds here in the U.S. The ones that are showing a little bit of weakness right now, year-over-year, appliances are slowing bit and consumer electronics. So I would just think big ticket items for the consumer and people that are paying higher food prices and higher transportation costs and higher utility bills, they're pulling back on some of those things.\n", "On the other hand, they're traveling. So we see those services and tourism numbers up. And so that feeds back into the packaging business and some of the other things I started with.\nOperator\nThe next question comes from Kevin McCarthy from Vertical Research Partners.\nKevin McCarthy -- Vertical Research Partners -- Analyst\nYes. Good morning. Jim, at your Investor Day last October, you provided a helpful trough to peak EBITDA range of $9 billion on the low end to $15 billion on the high end. And today, the run rate is right in the middle at $12 billion.\nSo it seems as though you've got a fair amount of cushion down to your self-defined trough range. But obviously, a lot's changed in terms of geopolitics and the energy volatility we're talking about here. Is that still the right range? And if so, can you flesh out what sort of assumptions you're baking into the trough level? And whether it might be better in a mild recession scenario or a little bit worse if we stress test further.\nJim Fitterling -- Chairman and Chief Executive Chairman\nYes. Thank you, Kevin. Look, the new range that we laid out is still intact, and we still feel good about that. 9 to 15, and that's including the expansion at Alberta, the net zero emissions facility in Alberta.\nIf you look where we are to 2025, probably that $8 billion to $14 billion range for that 2025 window, because the Alberta expansion doesn't come in until '27 and '29 in a couple of phases there. And I would think about it this way. P&SP always -- package and specialty plastics always performs well in these type of environments. We're well above mid-cycle EBITDA margins right now.\nAnd our look is for next year that we will still be above those mid-cycle numbers. So that underpins that lower " ]

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

[ "The Centers for Disease Control and Prevention is working with public health officials in 42 states to determine the cause of an outbreak of a particular type of salmonella called Typhimurium. Salmonella bacteria are transmitted to humans by eating contaminated foods. According to CDC sources, at least 388 people have been infected with this strain since September 3, but most cases occurred between October 1 and December 31, the disease agency said. About 18 percent of cases were hospitalized as a result of their illness, and patients have ranged from two months to 98 years of age. California is reporting the highest case count with 55, followed by Ohio with 53 cases, Massachusetts with 39, Minnesota with 30 and Michigan with 20. The other 37 states are each reporting anywhere from one to 19 cases. The eight states that have not reported any cases connected to the outbreak are Montana, New Mexico, Louisiana, Mississippi, South Carolina, Florida, Alaska and Hawaii. King Nut peanut butter was identified as the source of an outbreak that may have contributed to one death in Minnesota, state public health officials said Friday in a news release. CNN was unable to reach the company for comment. CDC has not identified what food or foods might be causing this outbreak. CDC officials and state public health workers are conducting case control studies, which means they're tracking down people who have been infected as early as September to determine what they may have consumed, to find a common cause. Learn more about salmonella » The Food and Drug Administration and the U.S. Department of Agriculture are in contact with the CDC, but without a determination of the cause of the outbreak, their involvement is limited. Various strains of salmonella have been linked to previous outbreaks, caused by contaminated eggs, meat, poultry, vegetables, pet food and even peanut butter. Contaminated tomatoes were blamed for a salmonella Typhimurium outbreak in fall 2006, which sickened at least 183 people in 21 states. Most of the victims had diarrhea and fever for about a week. Nobody died in that outbreak. Salmonella infections are caused by bacteria and if necessary can be treated with antibiotics, although some strains have become resistant to these drugs, according to the CDC Web site. Most people infected will develop diarrhea, fever and abdominal cramps within a few days of infection, and their illness can last up to a week. Most recover without any treatment, but some may suffer dehydration and in severe cases require hospitalization. ", "The youngest and oldest patients and chronically ill people with compromised immune systems are at highest risk for severe complications, according to the National Institutes of Health. Until a cause of the outbreak is confirmed, the CDC is recommending the following: Consumers should thoroughly cook meats, poultry and eggs. They should also avoid consuming raw or unpasteurized milk and other dairy products. Produce should be thoroughly washed as well. Avoid cross-contamination of uncooked meats and produce to prevent spreading any potential salmonella. Frequent washing of hands during food preparation can also help reduce cross-contamination." ]

[ "arting to sort of come back to normal. And so that risk has come down dramatically.\nDavid Williams -- Benchmark -- Analyst\nOkay. Great. Thanks. And then maybe some base station deployments in China. It seems like they've been a little bit slower roll out and COVID pockets are starting to appear. Just kind of curious your thinking about the base station deployments and just generally overall, kind of the China, Mainland, how you see that performing over the next maybe 12 months?\nStephen G. Daly -- President and Chief Executive Officer and Director\nSo I think there's going to be steady, very moderate growth. That's our expectation. There's been a lot of tenders out earlier in the year, mostly for 700 megahertz. We have little exposure to that platform. So from our point of view, deployment in China will be very muted, I would say, based on our current outlook. And from our point of view, what's important is that we win market share when we get our newest products, including our gain on silicon carbide, massive MIMO power amplifiers designed in wherever we can, and that's the focus for the business. We are seeing also an uptick in interest with ORAN. We're seeing an increased interest from international companies outside of China that are interested in MACOM's products, not only on the RF side, but also on the optical side as well as on the PON side of Telecom networks. So while China might be a bit muted, we see other opportunities outside of China.\nOperator\nOur next question coming from the line of Sam Peterman with Craig-Hallum Capital. Your line is open.\nSam Peterman -- Craig-Hallum Capital -- Analyst\nHi guys. Thanks for taking my question. I wanted to go back to Telecom and ask about growth drivers for the next year. I think at the beginning of the call, you listed out four things, if I remember right, as growth drivers there, including PON, cable infrastructure, microwave radios and SATCOM. And I was curious if you guys could just kind of rank order those, how you think those will impact your telecom growth in F 2022? And then if you could kind of comment on how you see potential cable capex spending rollover, balance out between kind of a lot of the new initiatives for fiber and fiber-to-the-home that have been going out here in the last couple of months? Thanks.\nStephen G. Daly -- President and Chief Executive Officer and Director\n", "Thank you. So it's very difficult for us to rank order in those end markets. I think they're going to grow at different rates at different times during the next 12 months. We think that, as I talked about at a high level, our expectation is 15% year-over-year growth for the entire segment. Certainly, 5G will contribute, no doubt. Cable infrastructure is very strong right now here in the U.S., we do expect that to continue. To your question about sort of capex spending. We think this is a multiyear cycle. This will not be a 12-month cycle. This is a three year cycle minimum. We also believe that we're winning market share in 10G PON, specifically on burst mode TIAs and drivers, where we have a very strong position and lasers. So the 10G PON market will be an area where we have very strong growth. We also, I'll just point out -- and again, this speaks to the -- our thesis that our growth is product driven. We are gaining traction with our Avalanche photodetectors inside of GPON equipment. And so that's also exciting for us. So really, as we think about Telecom, it's our core product lines getting stronger and winning market share, whether it's high-power switches, front-end modules for base stations, components for fronthaul and GPON. So a lot of moving parts. I wouldn't necessarily want to rank order any one of them as being more important than the other.\nSam Peterman -- Craig-Hallum Capital -- Analyst\nGot it. Okay. Thanks for all the color there. And then just a quick follow-up on capex. It looks like a pretty big step up to -- from $20 million-ish in the last two years to over $35 million this next year. You said it was mostly around production capacity in your fabs. Is this kind of rampi" ]

[ "retire that, allowing us to simplify the delivery of IP on a global basis, reduce costs and increase our speed to market. Second, we'll implement a hybrid cloud infrastructure to create economies of scale around computing and intellectual property distribution. Our on-premise infrastructure currently operates at high levels of efficiency and the additional use of public cloud helps us to optimize our computing capabilities. This approach has already allowed us to power key international opportunities in countries such as India and Chile, as well as to provide the spine for our Media vertical, which I'll talk about in more detail shortly.\nThird, we will leverage the growing arsenal of innovative cloud-based tools to enable faster product development. Examples include new compliance tools, analytics stacks, model training, machine learning and other cutting-edge technologies. We have delivered the first set of foundational cloud services to our development teams and expect the first deployments into production in the second half of this year. Given our focus on talent and building continuity for the long term, we continue to embrace up-skilling our workforce. In this regard, we've made considerable progress in training our internal teams with 80% having completed or currently enrolled in cloud training including hundreds receiving full AWS certification in addition to the new hires that we brought on this past year.\nWe believe developing our internal talent will make our company cloud native just like our technology. This will allow us to continuously evolve and stay nimble in the future. Beyond these very attractive marketplace benefits, we expect Project Rise to deliver between $20 million and $30 million per year of operating expense reductions beginning in the year '23. Project Rise represents a critical evolution of our technology strategy and enables significant long-term opportunities and efficiencies for TransUnion. Global operations provides another way to deliver efficiencies and facilitate commercial success through centralization, process optimization, and automation leading to a better customer experience, as well as cost savings that we will reinvest in growth projects.\n", "Our team has identified three areas of greatest potential impact and they've made significant progress thus far. First, we expanded our disciplined procurement processes to all of our purchasing. We renegotiated our largest contracts and recently began to focus on the remaining opportunities. We've reduced costs while adding features and functionality. We also began implementing a life-cycle procure-to-pay system from Coupa, enabling complete spend visibility globally. We've already deployed the tool in the U.S., Canada, and the UK, and we'll add more of our major markets in '21. Second, we continue to expand on the success of our Global Capability Center or GCC in Chennai, India, which now employs more than 900 associates. We added another center in Pune, India in the fourth quarter of last year, focused on providing analytics services across our organization.\nAnd this year, we opened a GCC in Johannesburg, South Africa, to provide a range of business services in order to flex capacity and to create continuity safeguards. Each GCC meets the growing needs of our customers while refining our delivery and support capabilities in eliminating concentration risk. They also allow us to cost effectively process more sophisticated and confidential work than we could using third parties. And finally, we're focused on business process refinement and automation to enhance customer experience. Most significantly, we are implementing a standardized global CRM system that when coupled with our GCCs forms an effective technology and operational fulfillment spine for transparent, high-quality customer support.\nSaid another way, we're creating a structure to efficiently process work, so we can focus on delivering the best experience for our customers. Together, we are confident that Global Operations will deliver significant effectiveness and cost benefits, an" ]

[ " give you that example of South Africa. You start to add up to 200 doors that they build out within the last year.\nBrian Mullan -- Deutsche Bank -- Analyst\nAnd just a follow-up, keeping to the theme of the white space you have, there's many markets you're not in over the long term. I just want to ask about China. Is that a market where you're devoting any resources to explore today? Or is that perhaps something that you see more feasible several years from now? And any high-level thoughts on what that might look like one day, whether company-owned or if you think a local partner would eventually make sense down the line?\nMike Tattersfield -- President and Chief Executive Officer\nSo one of the things that we did when we acquired our six businesses that are the countries that we currently operate from an equity business was to make sure that we could leverage them, so they really build a partnership. You specifically mentioned China. There could be other countries like Brazil, a lot countries in Western Europe that we'll look to develop. Whether we choose to do that both on a partnership side or a franchise side, those are things where we see the growth significant.\nBut I see a lot of growth on the franchise side, particularly in international as that will continue to grow. And we'll look in pace and development in China or other countries as we see fit. We have a lot of growth to do in the core business that we're in today, not just in international, but as well as the transformation that continues in the United States. And we see continued growth in further countries with the franchise partners as well. \nOperator\nThank you. At this time, I'm showing no further questions. I would like to turn the call back over to Mike Tattersfield for closing remarks.\nMike Tattersfield -- President and Chief Executive Officer\nSo thanks, operator, and thank you, again, everyone, for joining us today. I trust you can hear how excited Josh and I are about the business and our runway for growth. We have a premium fresh product with exceptional quality, majority control of our operations, and are taking a disciplined approach to increasing points of access in order to maximize profitability. We have momentum and conviction in our story as we continue to advance this iconic Krispy Kreme brand that continues to prove to have long-term potential for growth and expansion over the long term.\n", "I once again want to thank all the Krispy Kremers for the incredible work and appreciate you taking time to listen and engage with us.\nOperator\n[Operator signoff]\nDuration: 57 minutes\nCall participants:\nRob Ballew -- Vice President, Investor Relations and Corporate Communications\nMike Tattersfield -- President and Chief Executive Officer\nJosh Charlesworth -- Chief Operating Officer and Chief Financial Officer\nJohn Glass -- Morgan Stanley -- Analyst\nJohn Ivankoe -- J.P. Morgan -- Analyst\nJared Garber -- Goldman Sachs -- Analyst\nBrian Mullan -- Deutsche Bank -- Analyst\nMore DNUT analysis\nAll earnings call transcripts" ]

[ "and also overseas like Southeast Asia and Hong Kong. I think, even in China, we think -- we believe there is more new markets were coming -- become more important, accepted our previous four key markets. So, I think we still have the plan to expand our business -- to still strengthen our business, getting more market share in the current Tier 1 market. Also, we do have the very, very solid plan to -- move to some new important market in China. But in the meanwhile, we see -- as we talked during our roadshow, Hong Kong IPO, we do see a lot of the solid demand from our installed base is in Southeast Asia expansion. So, this is a -- we are actively developing those business plan. So, that's why I think we are quite exciting at this moment to look forward to the next couple of years.\nColby Synesael -- Cowen and Company -- Analyst\nWilliam, do you think that we could see you going outside of China in 2021?\nWilliam Wei Huang -- Founder, Chairman and Chief Executive Officer\nIt's too early to say. We will see -- we actually develop the plan and evaluate all the demand and all the -- evaluating [Phonetic] all the business partners in Southeast Asia. So, I think maybe in the near future, maybe the beginning of the next year, we will tell you the -- tell you guys what's the -- exactly the plan is. So, I don't want to say too early. It's too early to say. But I can tell you, we actively -- to develop the plan right now.\nDaniel Newman -- Chief Financial Officer\nYeah. Hi, Colby. If we just isolate out the refinancing part of what we're doing, I'll say that the cash interest saving is several hundred million RMB per annum. In terms of how it gets reflected in our accounts when we refinance, in some cases we have to write-off the amortized portion of front-end fees that we've incurred on the initial financing. So, it may not become immediately apparent in the first half of next year that we have reduced the effective interest rate. But if you give us a few quarters, I think it will become apparent later next year.\n", "And then in addition to refinancing, there's the incremental financing, which I believe we'll be able to do on these better terms. This is significant improvement on what we've been doing in the past. It's a continuous improvement. But it's not that long ago that we were doing project financing at an all-in cost of around 7%. And as soon as we've got in execution right now or work out around 5% or even less.\nColby Synesael -- Cowen and Company -- Analyst\nGot it. Thank you very much.\nOperator\nYour next question comes from the line of Gokul Hariharan from J.P. Morgan. Gokul, please ask your question.\nGokul Hariharan -- J.P. Morgan -- Analyst\nYeah, hi. Thanks for taking my questions. First of all, now that we are developing a bigger and bigger edge-of-town portfolio in at least the three main locations, could we talk a little bit about how is the demand looking at city center, the more older data centers versus what you're developing at edge-of-town? Are we seeing any differences in terms of demand, be it power density or other requirements?\nThe second is, I think 2020 seems to be the year where capex -- a lot more of the capex is being spent on inorganic. As we think about the next couple of years, how should we think about organic versus inorganic? Do you feel that inorganic is going to be a bigger portion of the capital outlay as we think about the next couple of years and some of the opportunities that you've talked about?\nDaniel Newman -- Chief Financial Officer\nFirst one is demand for the downtown data centers.\nWilliam Wei Huang -- Founder, Chairman and Chief Executive Officer\nYeah. I think the direct answer is demand from the -- for the downtown, let's say, edge-of-town, right?\nDaniel Newman -- Chief Financial Officer\nMore central.\nWilliam Wei Huang -- Founder, Chairman and Chief Executive Officer\nMore central, still maintain very strongly. Yeah. So, I think the -- we have -- that's why we keep acquire the edge-of-town data center, when we also -- when we developed the edge-of-town campus. So, this is -- this strategy will " ]

[ "h and improved profitability.\nThat is why we are being as, as transparent as possible and sharing with everyone the near-term challenges that face us. But as I said before, we believe these challenges will be measured in months, not quarters or years. I want to be clear on how excited I am about the opportunity that lies ahead in 5G for the enterprise. Inseego has become the leader in 5G edge with our high performance mobile and FWA solutions.\nIn the coming months, the pieces will be put in place for mainstream adoption as the carriers evolves their 5G data plans, and we move beyond the renewed COVID lockdowns. We believe these factors, combined with our growing pipeline, and expanding go to market will put us back on track to achieving our financial goals. Thank you for your interest in Inseego. Now let's go to Q&A.\nQuestions & Answers:\nOperator\nThank you. [Operator instructions] Today's first question comes from Lance Vitanza with Cowen and Company. Please go ahead.\nLance Vitanza -- Cowen and Company -- Analyst\nHey, guys. Thanks, and congratulations on the nice quarter. I guess I had a couple of questions. The first is, Ashish mentioned the China lockdowns could cause a bigger impact in to 2Q, I think you mentioned in particular with respect to new product launches.\nCould you provide any more color on maybe the magnitude of the delay? And and is that revenue likely to-- I think you addressed this in terms of the months rather than quarters commentary. But specific to what you're seeing with those lockdowns, is this revenue that you think likely gets pushed into the second half? Or is there some risk that this revenue is lost forever for whatever reason?\nAshish Sharma -- Chief Executive Officer\nHey, Lance. Nice talking to you. Hope you're doing well. So, yes.\nTo answer your question. It really is a slight delay, is how I would say it. We're working through all of the partners out there in Asia as they go to these lockdowns. It's just uncertainty.\nThat's all I would say at this point. We could -- we'll come back and provide more details as we see how things unfold. It could happen, I -- that's why I said that these delays could happen. But we are really tightly managing them right now.\n", "But it's just the overall global uncertainty as that's kicked in through to what's happening with COVID in Asia. That's why we're just saying it's a little bit of a delay. But beyond that, I mean, we're working through all the challenges we are seeing out there.\nLance Vitanza -- Cowen and Company -- Analyst\nSo, on the last quarter, I think maybe the last couple of quarters, you guys obviously had talked about a -- in outlook for 2022 of for 25% year-over-year growth. Obviously, that's that pro forma for the Ctrack South Africa sale. And I think you'd also been expecting to be free cash flow positive by year end. I know that there's a lot of uncertainties here, but just in terms of thinking about how we model, the best that we can do at this point, -- would you be comfortable putting, is it -- should we be thinking more like a 15% year-over-year growth or or more or less than that? And could you help us think about that -- the magnitude of a potential when you finish the year, where do you think you'll be? Burning -- 10 million a year, burning -- more or less than that? Something that we can put some goalpost around those two things would be great.\nAnd then I have one follow up for Bob, if you don't mind.\nAshish Sharma -- Chief Executive Officer\nHey, Lance. I will answer and then have Bob provided the input. So as I said earlier, to me, this is more of delays than anything else. So what I would say is, is as things come back online quickly in China and as you know, the second point that that I mentioned earlier in the remarks was the 5G data plans get put in place by the leading carriers, we're really ready to go like we've got the portfolio, we've got the products, and we're super excited about all the pipeline of opportunities we are working through with lots of hundreds of enterprises right now.\nSo to me, this is more of a delay. And if " ]

[ "One of the best gifts you can give a child this holiday season may not be the latest gadget, toy, or tasty treat, but instead the gift of a healthy lifestyle. Participants get a workout at the FitWit fitness boot camp. An Atlanta-based non-profit organization is doing its part to combat childhood obesity by teaching kids proper nutrition and exercise in a six-week fitness boot camp similar to NBC's \"The Biggest Loser.\" The FitWit Foundation hopes its program will catch on nationwide. \"We wanted to work with teens in a meaningful way, and we saw firsthand how fitness and physical activity in general is being neglected in this population. With a lot of help from volunteers and donors, we've started a program this past spring that encourages hard work and is a fun way to get in shape,\" said FitWit instructor Ben Thoele. FitWit's program is a six-week after-school boot camp competition which rewards participants with prizes for meeting fitness goals. An iPod Nano was the grand prize for Atlanta Public Schools students completing a recent fitness session. Watch for more on FitWit » Students who are motivated to get in shape but not involved in an organized sports team are selected as contestants. Participants' fitness levels are assessed at the beginning and end of the program. Each week, volunteers lead three 60-minute sessions that include fitness instruction and physical health education. In addition, the participants are assigned two home workouts to be performed between sessions. \"After six weeks, all participants have an increased total fitness ability. We averaged over 40 percent improvement in total fitness in our first program last spring. It's common to have a participant double their fitness ability,\" Thoele said. \"A lot of these kids don't know how to work out, or that they even have the capacity to work out. They gain an appreciation for pushing their limits, and when that happens, we see a tremendous boost in their self-confidence,\" he said. The need for increased fitness across the country is striking. According to the Centers for Disease Control and Prevention, 17.6 percent of U.S. teenagers were obese in 2006 -- more than triple the rate in 1980. Obesity puts the teens at increased risk for heart disease, bone and joint problems, sleep apnea, and social and psychological problems, the CDC says. \"Success for us is when a kid is thinking about fitness outside of the program, because they enjoy how they feel when they're in better shape,\" Thoele said. ", "\"Our first winner, Raquel, told us that she continued to come because she just felt better. She had incredible numbers as well. She was not able to perform even one sit-up at the start of the program and did 21 in our final assessments. She also shed more than 90 seconds off her mile time.\" \"Since I've been here, I've been eating healthy,\" one FitWit participant said. \"I have been watching what I eat and drink. I drink three cups of water every day. And I exercise more often. I don't spend too much time inside my home anymore.\"" ]

[ "e're at in that adoption curve of 5G already? And then kind of just trying to parse it together, you're not getting MSM guidance anymore, but I mean, are we already pretty close to that kind of run rate for 5G on a quarterly basis?\nCristiano Amon -- President\nBlayne, this is Cristiano. When you think about China market, we're very happy because the price points of 5G became very aggressive, and we saw that even starting in the last quarter, and that's driving probably more than 50% of all the new activations and all of the new phone launches with 5G. We like that position. As Akash outlined in the prior question, we're very well hedged regardless of who wins in the marketplace.\nAnd we expect the China-accelerated transition of 5G with lower price points to have an impact in how we're going to see this unfolding in emerging markets as China provide a lot of the handsets for emerging markets as well.\nAkash Palkhiwala -- Executive Vice President and Chief Financial Officer\nAnd then also just to add, that we are providing an additional data point on the 5G side on the total size of the market for 2021. We are forecasting a range of 450 million to 550 million devices, which really, when you look at a year-over-year basis, that's 150% growth. So extremely strong growth going into it. And as we exit the calendar year 2020, we're seeing that velocity going into '21.\nBlayne Curtis -- Barclays -- Analyst\nAnd then a follow-up. Just really appreciate the segment detail. When you look at IoT, you answered why it's spiking up so much. I'd be curious to know a little bit more about the history of that segment.\nIt looks like you kind of model it back to the details you gave, it's been running around $700 million a quarter. So I'm just trying to put in perspective the strength you're seeing here, and how to think about it going forward. Obviously, everybody is seeing a big work-from-home push. But as you move forward, does some of that roll off? Or has this business been at higher levels prior? Just any context would be great.\nAkash Palkhiwala -- Executive Vice President and Chief Financial Officer\n", "Yes. So if you look at the disclosure we have on our website, we're providing detail for fiscal '19 on an annual basis and '20 on a quarterly basis. And so I think there's enough data there for you to kind of come up with some trends on the business. And then maybe I'll go back to our Analyst Day commentary last year, we outlined growth and a vision forecast for the IoT segment.\nAnd so you could think about it the same way, where you'll be able to look at how the SAM grows and the parts of that SAM that we are interested in and how that grows, and that would be a good way of thinking about the long-term opportunity.\nCristiano Amon -- President\nBlayne, it's Cristiano. If I could add some qualitative comments. As you pointed out, there is this enterprise transformation of the home. It's driving a lot of connectivity.\nYou also have an accelerated digital transformation. But most importantly, you have 5G going to other industries. So this business and what it is today is probably a good proxy of a growth business for us as we realize this vision of 5G and other industries going forward.\nBlayne Curtis -- Barclays -- Analyst\nThank you.\nOperator\nOur next question comes from Ross Seymore with Deutsche Bank. Please proceed with your question.\nRoss Seymore -- Deutsche Bank -- Analyst\nGuys, thanks for letting me ask a question and a follow up. Congrats on the strong results. The first one is I think everybody appreciates the end market splits that you're going to have. But before the MSMs and the revenue per MSMs disappear for good, it's great to see that you've gotten it back above $30 on the revenue per MSM side.\nI just wanted to dive into, looking forward, does the 1.5 times content framework continue? Or is that $30 largely capturing it? And really, I guess what I'm getting at is if you're going to have 150% increase in your 5G units next year, is that going to be a tailwind on both the unit and the revenue per MSM side? Or more so one than the other" ]

[ " cracks in the armor yet in terms of the tightness that we're seeing. And certainly, as new fab capacity ramps toward the end of next year, I think that that should get us to the point where we can get back to serving the demand.\nRaji Gill -- Needham & Company -- Analyst\nAnd if I could just squeeze one more in terms of the IoT you had mentioned broad based growth across wireless but kind of specific focus on some traction on WiFi; any update there in terms of your WiFi efforts? Thank you.\nMatt Johnson -- President\nYeah, this is Matt. So on the WiFi piece; it's been over a year since we completed the acquisition of Redpine. We're very happy with the way that's gone. We've integrated the team, we've seen good market response to the technology and now we're integrating that capability into our ongoing roadmap. It came off from a small base, but we're actually seeing the growth of those WiFi products above the average of our other wireless technologies. So we're seeing good uptick in momentum there. And the fundamental thesis or strategic backdrop for why we did this hasn't changed, if anything we've seen in the last year or two, it's accelerated. So we're happy with where it's at. And we see continuing momentum there.\nRaji Gill -- Needham & Company -- Analyst\nAppreciate it. Thank you.\nOperator\nThe next question comes from Srini Pajjuri from SMBC Nikko Securities. Please go ahead.\nSrini Pajjuri -- SMBC Nikko Securities -- Analyst\nThank you, good morning guys. And let me echo my congrats as well for Tyson and Matt. A couple of questions. First, John, can we talk about the channel inventory. I think you said, it went up four days. Could you put it into perspective and also are you comfortable where the inventory is? Or do you plan to kind of try to build additional level of inventory as we head into the second half of the year?\nTyson Tuttle -- Chief Executive Officer\n", "Yeah, Srini, I mean the main thing to say about this is our operations team has done a great job executing more supply get into shipments out and ensuring that we have adequate channel inventory. The inventory is falling, but we are pleased that we're able to elevate our unit shipments on a sequential basis in the second quarter. I mean anticipate doing that again in the third quarter. So that is a relatively normal level of inventory. Ideally, yes, we would like to increase it from, but overall, that is a relatively normal level.\nSrini Pajjuri -- SMBC Nikko Securities -- Analyst\nGot it. And then, just a follow-up on gross margins, John. So your longer-term model is for mid-50%. I'm just trying to understand how we get to mid-50% from the current levels obviously you said there was some benefit in the quarter. But as we go through the next few quarters or next couple of years, should we assume that this is going to be a gradual decline or I mean do you even that -- I mean should we even expect a decline or do you think the mix itself will take care of itself? Or are there any other factors that we should be aware of as we model gross margins?\nJohn Hollister -- Chief Financial Officer\nSrini it's of course it's a hard thing to predict, but over time as this market grows and evolves, competition is presence in the market and we're allowing for the possibility of some slight declines over time as we scale the business and building our model to comprehend the possibility if that happen. It may not happen, but we're acknowledging that it's possible that it might happen.\nSrini Pajjuri -- SMBC Nikko Securities -- Analyst\nGot it. Thank you.\nOperator\nThe next question comes from Tore Svanberg from Stifel. Please go ahead.\nTore Svanberg -- Stifel Nicolaus -- Analyst\nYes, thank you and congratulations to Matt and Tyson. Tyson, we're going to miss you a lot. And before we let you off the hook, I was hoping you could just talk a little bit more again about the long-term vision in IoT? Obviously you become a semiconductor leader. I know you've invested a lot in software and security. So as we look in the next few years, how is this IoT business is going to evolve for the company" ]

[ "that has made the mobile more sustainable for us. And I think when you look at volume growth, share gains, there is a strong linkage with these investments we have been making in global and local brands.\nPamela Kaufman -- Morgan Stanley -- Analyst\nThank you. Can you just give an update on the white space opportunities that you're targeting and how you're leveraging the recent acquisitions to address these opportunities.\nDirk Van De Put -- Chairman & Chief Executive Officer\nSorry. Yes, the wide space opportunities for us are -- I mean, if you look at our building blocks for growth, the first two are pretty straightforward. It make sure our categories keep on growing. We are big players in our category, our category growth depends [indecipherable]. Second, continue to increase our market share and that gives us a bigger growth. Third, there is the channel expansion that we can do. We are not having the same market share in all channels. Thinking about, for instance, online or digital commerce in the more developed markets. But we're also talking about numerical distribution in emerging markets. As I was saying in the prepared remarks, we are increasing China by 120,000 stores and India by 80,000 stores our presence this quarter alone. So then on top of that, there's high growth segments within our categories and so I'm thinking about well-being, thinking about premium and those are some of the areas that we are underrepresented and that we should be really launching new products in there and using some of the acquisitions that we've been seeing to getting there, for instance, out grenade or that would [Phonetic] fit in this category. Then we have geographic wide spaces around the world, countries where we are not yet that present. And so, we haven't done that many yet, although an acquisition like Chipita which largely plays in East and Central Europe and some of the other emerging markets. Obviously, we'll reinforce our presence but they're largely in the same countries as we are or where we already have a smaller presence but it certainly will give us more critical mass. And then the last one is the closing adjacencies which are the bakery and the bar segment. And so, Chipita fits or Give & Go fully fall into that sort of growth opportunity that we have. And so that's the last wide space. So it's between channel, high-growth segments, geographical wide spaces and closing adjacencies. Those are the four big wide spaces that we have.\n", "Pamela Kaufman -- Morgan Stanley -- Analyst\nThank you.\nOperator\nAnd this does conclude our --\nDirk Van De Put -- Chairman & Chief Executive Officer\nI think we've come to the end. Yeah?\nOperator\nSorry. Go ahead. This does conclude our Q&A session. I'd like to return the call to you for any concluding remarks.\nDirk Van De Put -- Chairman & Chief Executive Officer\nNo. I think we've come clearly through the end. Thank you for your interest in the Company. Happy to reply to more questions. Please contact the Shep and Andrei and we will do whatever we can to help you out. And looking forward to talk to you at the end of the year to give you a full update of where we've ended '21 and give you our guidance for '22.\nOperator\nThank you.\nLuca Zaramella -- Chief Financial Officer\nThank you.\nOperator\n[Operator Closing Remarks]\nDuration: 70 minutes\nCall participants:\nShep Dunlap -- Vice President of Investor Relations\nDirk Van De Put -- Chairman & Chief Executive Officer\nLuca Zaramella -- Chief Financial Officer\nUnidentified Participant\nFilippo Falorni -- RBC Capital Markets -- Analyst\nBrian Spillane -- Bank of America -- Analyst\nChris Growe -- Stifel -- Analyst\nAlexia Howard -- Bernstein -- Analyst\nJason English -- Goldman Sachs -- Analyst\nDavid Palmer -- Evercore ISI -- Analyst\nPamela Kaufman -- Morgan Stanley -- Analyst\nMore MDLZ analysis\nAll earnings call transcripts\n\n\n\n\n" ]

[ "home-driven laptops, computing, cloud services, all of that drives demand. And even though the smartphone cycle moved by a quarter, and as you know that one of the key OEMs moved their cycle to fourth quarter and ending the cycle in the first quarter, we continue to see good growth rates and good demand in China. So all in all, it's a broad-based growth, which we benefited in the second quarter.\nGeoff Wild -- Chief Executive Officer\nI'd only add to that, I think we're seeing good drivers on 5G penetration, starting millimeter wave penetration. You've seen upgrades by some of the major smartphone manufacturers in their outlook, which has come through into the supply chain, which has given us better growth than expected and a better outlook as well for the second half than we expected ahead of their anticipated launch for the first quarter of next year.\nArun Viswanathan -- RBC Capital Markets -- Analyst\nGreat. Thanks. And then just also just wanted to get your thoughts on the equipment business. It's somewhat unique to you guys.\nAre you seeing more orders there? And does that give you visibility into next year as well?\nGeoff Wild -- Chief Executive Officer\nYes. Still strong on equipment. Our factories are pretty much fully loaded now. We're dealing with some supply chain stock shortages as well on some components and I think managing that quite nicely.\nOur factories in both Germany and China are pretty much full up and we've got a good order book and visibility out, I think, to the second half -- to the first -- the end of the first half of next year. So it's mostly driven in by Electronics, mostly then driven by semiconductor packaging and HDI. But we are starting to see some interesting inquiries as well for the GMF business, which we believe should recover next year as well.\nOperator\nThank you. Our next question comes from David Begleiter with Deutsche Bank. Your line is open. \nDavid Begleiter -- Deutsche Bank -- Analyst\nThanks. Good morning, Geoff and Peter. Just looking at Q4 guidance, can you comment on the somewhat wide range? And it looks like at the low end it could be down year over year. What factors would cause Q4 to be down year over year? Thank you. \nPeter Frauenknecht -- Chief Financial Officer\n", "Yes. I think we have a pretty good visibility for the third quarter. And there are various factors driving the fourth quarter market trends. And if you look at market estimations and the key marketing firms, they see a probably rather stable or slightly declining market for the automotive market in the fourth quarter.\nWe believe that we outperform the market, but still the fourth quarter 2020 was a very strong automotive quarter where we are not sure, with the supply chain shortages, how the trend is going to be. On the Electronics side, we continue, despite the fact that, as I said, one of the key top OEMs started their smartphone cycle in the fourth quarter, we continue to see strong demand. We continue to see growth in Electronics again. But the comps are getting a lot more difficult, with the automotive market returns in the fourth quarter 2020.\nAnd also the Electronics, particularly the smartphone market, performing very, very well in the fourth quarter last year. So again, we see that we definitely perform at that level, but the growth rates are dependent on various factors, and that's what we put into our focus.\nDavid Begleiter -- Deutsche Bank -- Analyst\nAnd just commenting on the first half of the quarter right now, are you ahead or in line or behind your forecast for top line and EBITDA growth for Q3?\nPeter Frauenknecht -- Chief Financial Officer\nWell, as I guided here, you saw that we improved our guidance for the full year. So what we mentioned over the last calls as well, we were quite cautious going into the year. We see a strong confirmation of our growth trends. We see a strong confirmation of our project wins.\nAnd with that, we were able just to increase the guidance for the full year and we were able just to increase our guidance for organic chemistry growth rate as well as equipment growth rate. So " ]

[ " the morning progresses.\nAs I mentioned earlier, our revenue grew $40 billion last year, putting us at least a year ahead of where we thought we might be. So we need to lean in more aggressively in key markets with increased capital and fulfillment capacity, supply chain, automation and technology. This new infrastructure will allow us to expand eCommerce assortment, enabling us to reduce both shipping time and costs. We'll step up automation in DCs to deliver aisle and department-ready pallets, stores. We'll continue to refresh our existing stores by enhancing pickup and delivery capacity, merchandising programs and efficiency initiatives.\nIn India, we see significant growth opportunities for Flipkart and PhonePe. It's exciting to see the emerging middle class rapidly adopting eCommerce and using their mobile phones to use money transfer, insurance and other services. Meanwhile, we'll step up technology investments to continue upgrading legacy enterprise systems and customer-facing technology. We're on a multi-year journey of modernizing our tech stack and capabilities to increase the efficient use of the cloud and simplify customer and associate experiences.\nAs we accelerate investment, capex is expected to be around $14 billion this year with most of the increase versus last year in the U.S. Over the next few years, we expect capex to be around 2.5% to 3% of sales. While this is higher than the past few years, it is far below the capex peak of 4% to 5% of sales during the period of heavy Supercenter growth. This spend will allow us to fully optimize our strategy, and in turn, accelerate the company's top-line and profit growth rates in the mid to long-term.\nAfter years of transition, these investments should put us in position for 4% plus sales growth and operating income growth rates higher than sales. 4% top-line growth would basically be the equivalent of adding a Fortune 100 company every year. Our unique financial strength allows us to continue to deliver strong returns to shareholders while growing the business. And as you saw this morning, we increased our dividend for the 48th consecutive year. And we authorized a new $20 billion share repurchase program, which we plan to execute over the next three years or so. There are so many initiatives under way that give us confidence that these are the right investments at the right time. We're already seeing proof points, and you'll hear more about these later on.\n", "We expect continued strong growth in the U.S. businesses and expect even higher international growth rates as we focus on key markets and making money in new ways. We'll continue improving margin mix through an enhanced general merchandise offering, new brands and marketplace growth with a greater push toward expanding fulfillment and other services for sellers. We'll drive existing and new customer growth through initiatives like Walmart+. We'll grow sales and profit increasingly with growing higher margin businesses and advertising, financial services, marketplace, healthcare services and the like. Our operating discipline will continue to sharpen. After a pause in FY '22, primarily because of additional wage investments, I expect expense leverage to continue at or above 20 basis points a year.\nLet me turn now specifically to our expectations for this current year. We feel very good about the underlying business and ability to compete from a position of strength. However, we're still facing similar COVID-related challenges as we have over the past several quarters, which caused us to suspend guidance and continues to make short-term guidance very challenging. Despite that we want to give you the best view we can at this time given what we know and what we see right now.\nWe know we'll have both headwinds and tailwinds this year, the balance and degree of which isn't clear. As the year progresses, we hope to get more clarity around COVID impacts, vaccine efficacy and availability, the scale and duration of economic stimulus and the mid-term economic climate globally. Even if conditions stay generally similar" ]

[ "the role of MicroStrategy's participation in the Bitcoin network evolving in the future? And will the company look to build a software business that leverages the growth of the Bitcoin monetary network where you expand the company's world beyond being a leader for Bitcoin treasury education?\nMichael Saylor -- Chairman and Chief Executive Officer\nWe have a scrum team, and we're actively studying the Bitcoin industry and all the activities and the process in the industry and all the data in the industry to determine the best way for us to add value with our existing business intelligence and HyperIntelligence. Although we don't have anything that we are ready to announce right now, we're enthusiastic about the opportunity to bring our intelligence to the industry at the right time in the right fashion.\nJeremy Price\nAll right. Just as a reminder, please use the Q&A feature at the bottom of your Zoom screen in order to ask questions. Next question for Phong. How should we think about the growth of license in 2021 given the momentum around cloud and subscription?\nPhong Le -- President and Chief Financial Officer\nYeah. Thanks, Jeremy. Obviously, we're pretty excited about the ability to transition to the cloud. We are still early in that process.\nI think as I noted, we saw a 21% growth in our cloud revenue on a year-over-year basis and 41% growth on our cloud billings on a year-over-year basis. That was off of Q3 where we saw an 80% growth in cloud billings on a year-over-year basis. So although early on, we're starting to see good momentum. Obviously, when we see subscription revenue come through, it's recognized on a ratable basis.\nSo it ends up depressing slightly our product license revenue. And many people study cloud transition models and have experienced that. So if not for that cloud growth in Q4, we would have seen higher product license revenues. All that said, our revenues, generally speaking, were flat in Q4 and flat for the full year.\nI think as we start to accelerate our growth in 2021 across perpetual licenses and cloud, my goal is to not see a significant change in our product license revenue and not a significant impact from our transition to cloud and see growth in both. And I think with the momentum that we've seen in our business, that is a potential positive outcome. It's growth across all of our revenue segments.\nJeremy Price\n", "Good. Thank you, Phong. Next question, and I think there are a couple of people who've asked this or some version of this. Are you planning to do another convertible debt offering, or have you considered issuing equity debt or other securities to allow you to purchase more Bitcoins?\nMichael Saylor -- Chairman and Chief Executive Officer\nWe're continuing and continuously evaluating our capital position, as well as the market conditions in the capital markets. We have sufficient liquidity to operate our business as it's currently conducted. While it's possible we'll raise additional capital if we think it makes sense to, it would be inappropriate for me to comment on any future financial plans.\nJeremy Price\nOK. And I think a follow-up question there is, will you purchase additional Bitcoins in future periods?\nMichael Saylor -- Chairman and Chief Executive Officer\nWell, Bitcoin is an important part of our overall strategy. So going forward, we will continue to plan to hold our Bitcoin. We will invest additional excess cash flows in Bitcoin. And we'll explore various approaches to acquire additional Bitcoin as part of our general corporate strategy.\nJeremy Price\nAll right. Thank you, Michael. Let's see here. Are you a software company or just a Bitcoin investment vehicle?\nMichael Saylor -- Chairman and Chief Executive Officer\nWe're a global leader in enterprise analytics, software, and services. We continue to operate the software business, as we have over the last 30 years. But at the same time, Bitcoin is an important part of our strategy. We have a Bitcoin strategy in addition to our software strategy.\nSo if you just keep in mind that we've got two strategies, we're going to pursue th" ]

[ "Imagine the Batmobile busting bad guys in Bismarck, North Dakota, or \"Knight Rider's\" KITT corralling criminals on the Pennsylvania Turnpike. Carbon Motors Corp.'s E7 concept vehicle was on display recently near the U.S. Capitol. Carbon Motors Corp.'s new high-tech cop car prototype might not be quite up to superhero specs, but some police say it could be a welcome addition to their arsenal. \"I don't see any downside to this car,\" said Carl Latorre, a Pennsylvania State Police dispatcher who served 35 years as a Philadelphia police officer. \"I am so excited about this car. This car rates up there with cops carrying automatic weapons to combat what the criminals carry now. It's about time that something like this came about.\" OK, so it doesn't have a nanotech cloaking capability or rocket boosters, but every feature on the Carbon E7 concept vehicle draws on suggestions from more than 3,000 law enforcement professionals. The result is a futuristic prowler with a 300-horsepower clean diesel engine, flashing lights visible from all angles, an ergonomic cockpit, an onboard computer with voice command and instant license plate recognition, integrated shotgun mounts, and more. (Weapons of mass destruction detectors are available as an option -- seriously.) See how the E7 stacks up against KITT and the Dark Knight's Tumbler » The E7 was designed by cops for cops, breaking the tradition of recruiting family sedans into the force, company co-founder Stacy Dean Stephens said. \"The current vehicles that they (police departments) use were designed for driving around, going to the grocery store, taking kids to school -- things like that,\" Stephens said. \"You don't have an engineer sitting at one of the other automakers who says, 'Y'know, I think what we need to do is we need to take this car, and we need to run into a curb at 50 miles an hour and see how many times it takes before the wheels and the suspension fails on it.\" The rear passenger compartment alone is enough to make experienced cops get teary-eyed. The rear-hinged \"suicide doors\" make it easier for handcuffed passengers to get in and out, and the seat is designed so \"guests\" can ride comfortably with their hands cuffed behind their backs. ", "For officer safety, Latorre likes how the seat belts are anchored in the center of the seat and buckle near the door so the officer doesn't have to lean across the prisoner. \"When you put a prisoner in the back seat, you're supposed to strap him in,\" Latorre said. \"Nowadays, you have to make sure your gun isn't going close to his hands, and how are you going to strap somebody in doing that?\" Perhaps most popular among cops is the rear compartment, which is sealed off from the front and made entirely of seamless, washable plastic, with drain plugs in the floor. \"Numerous times I've had less than pleasant experience\" with prisoners vomiting or relieving themselves in the back seat, said Stephens, a former Texas police officer. The seat innovations are up front, too, where the seats have recesses to accommodate officers' bulky gun belts. \"The front seat -- I couldn't believe the front seat. They thought of everything,\" Latorre said. \"You don't know how difficult it is to get out of a car. The first thing you've got to do is adjust your gun belt. The gun belt shouldn't be a problem.\" The E7 can go 0 to 60 mph in 6.5 seconds, has a top speed of 155 mph and can withstand a 75-mph rear impact, according to the company's Web site. It has bullet-resistant panels in the doors and dash and has push bumpers incorporated into the aluminum frame. The upper flashing lights are integrated into the roof panel, eliminating the need for a bolted-on light bar that causes aerodynamic drag -- reducing fuel economy -- and can lead to rust. Watch police check out the" ]

[ "ad time. But you've got to have the infrastructure in place, especially in the core network. While we can always add cell sites to deliver 5G in a local market, the first starting point is inside the core, which is what we're spending on right now.\nRichard Prentiss -- Raymond James -- Analyst\nAnd people have been debating if this 2020 will be a year for a \"super cycle\" with 5G iconic devices coming out. How is your view in the guidance right now and also your view of what's actually going to transpire with the switching pool?\nKenneth R. Meyers -- President and Chief Executive Officer of US Cellular\nWow, too soon for me to tell. Yeah, a lot of talk about it. But I think that we're still early in the 5G deployment. And in fact, if 5G deployment isn't far enough along, we actually run the risk of a dissatisfaction with consumers if we get the super cycle change and the network isn't there because people will expect something that isn't being delivered. So something I want to be very careful with.\nRichard Prentiss -- Raymond James -- Analyst\nOkay, thanks Ken.\nKenneth R. Meyers -- President and Chief Executive Officer of US Cellular\nThank you. Have a great weekend.\nOperator\nYour next question comes from Philip Cusick from JP Morgan. Your line is open.\nReed Kern -- JP Morgan -- Analyst\nHi, this is Reed for Phil. Thanks for taking my question. It's just the fall of tower multiples have increased anywhere from a few turns to as much as five times. So especially in the context of your capex guidance in the upcoming spectrum auctions, could you share your thoughts on taking on a partner or changing your stance on monetizing those towers? Thanks.\nKenneth R. Meyers -- President and Chief Executive Officer of US Cellular\nI'm sorry, Reed, I didn't hear the very beginning part of your question.\nReed Kern -- JP Morgan -- Analyst\nJust talking about how tower multiples have really expanded anywhere from a few turns to five times since the fall of 2019.\nKenneth R. Meyers -- President and Chief Executive Officer of US Cellular\n", "Okay. Yes, I think my stance on towers has been pretty consistent, maybe paying full lease out. And that is their strategic assets, and they continue to be strategic. They continue to be important as we change our network configuration with 5G, just like it has with every other technology change. But what I also said was that spectrum is a strategic asset also. And it's -- I could justify. I could use a trade of one strategic asset if it allowed me to get another strategic asset. So towers for spectrum is something that we consider. But just towers for tower's sake isn't something that was in my current plan.\nReed Kern -- JP Morgan -- Analyst\nGreat, thanks. And then maybe a second one separately. We've seen solid growth in cable, particularly broadband over the past year. Can you kind of estimate what the portion of out-of-territory build accounts for when you're looking at the total subscriber and revenue growth in cable? Like or in footprint markets less attractive as kind of the capex spending guidance makes it appear?\nVicki L. Villacrez -- Senior Vice President of Finance and Chief Financial Officer\nSo let me make sure I answer your question. And if I don't, please follow back up. But Reed, this is Vicki Villacrez. As you're looking at cable, we are expecting strong broadband growth, similar to the trends you've seen all this year into 2020. And that's really separate from our out-of-territory broadband growth, which is in our wireline segment. And that growth is really offsetting some of the secular declines that we have in our wireline base, including the commercial declines that we're seeing from our CLEC business.\nReed Kern -- JP Morgan -- Analyst\nGreat, thank you.\nOperator\nYour next question comes from Zack Silver from B. Riley, your line is open.\nZack Silver -- B. Riley -- Analyst\nOkay, great. Thanks for taking the question. On the US Cellular side, you guys are emphasizing this idea of expanding addressable markets as a priority this year. Is this just a reference to the edge out expansions you guys are doi" ]

[ "pportunity and the fixed value success versus one network, etc., that might prolong the 5G cycle, but all these are still quick with some uncertainty on the large volumes that will be.\nAnd given the inflationary times we see, my question is, if you will need to address your underlying opex base, i.e., and very pleased to secure your long-term margins before we see these segments really taking off? And also a question on the R&D hike you see on silicon, for example, and Cloud RAN, should we think of some of these investments being more of a temporary nature? Or will it more be a new base? Thank you.\nBorje Ekholm -- Chief Executive Officer\nI mean I do believe that we see actually -- first of all, on the 5G market, I suspect many of the outside analyst firms are going to raise the size of the market. The -- I think we've seen a journey here where many of the outside analysts and industry analysts have been a bit behind the takeoff in 5G. I think that is likely to continue. And I think we actually underestimate the new type of applications we're going to see.\nThey may not come 2022 or 2023, but they're going to come 2024 or 2025, that will require a densification of the 5G network to launch these new type of use cases. So I'm actually believing, yes, there can be always a bit fluctuations, but we see that 5G will be such a central piece of society going forward to drive digitalization that it will have to be built out longer and more dense than we've seen in the past. And that's why we're very -- we're believing in that future. We're also going to invest correspondingly.\nThat means that as we look today, we're going to continue to invest in technology for technology leadership, and we're going to make sure that we are a technology leader. If we are -- can retain that position, we have a value proposition to our customers. So in reality, that's going to be front and center. Of course, if the world would come into a situation where the outlook changes, i.e., that we have to adjust, we would, of course, adjust.\n", "But what we believe is, for example, take Cloud RAN, we think that's going to be deployed going forward also in enterprise segment. So we invest today fairly significant amount of money. And of course, we believe that the market here is going to come. It may take two years before it comes.\nBut we think therefore by investing now, we'll be very well positioned when that market takes off. So we are continuing to invest for the long run.  At the same time, you've seen us in the past, we've been committed to achieving our targets overall. We remain committed to achieving the target. So we will adjust and run the company in that way.\nBut rest assured that technology leadership that will feature as a prominent part. So maybe investments in Cloud RAN will taper off, but then we're going to see investments in some other areas that's going to drive revenue growth. But the reason why we talk about Cloud RAN and, to some extent, Ericsson Silicon, as well is that it has cost today but we're not going to see revenues until one to two to possibly three years out. But that's what we invest for, and that's what we are going to continue to invest for.\nDaniel Djurberg -- Handelsbanken Capital Markets -- Analyst\nOK. Thank you.\nPeter Nyquist\nThanks, Daniel. We'll move to the next question.\nBorje Ekholm -- Chief Executive Officer\nMaybe we should add there. You made the point before, Carl, it's important to remember the growth potential in enterprises. And sometimes we focus only on the infrastructure market. That's going to be the core of our company.\nIt's the bulk of our company. We're going to make sure that we perform there. That's for sure. But we also see the applicability of our technology in enterprises.\nAnd that's a segment that is going to be very large, can possibly be even larger than the infrastructure business in a few years' time. So the investments we make now should be financed, of course, by our infrastructure business, and that's what you see we try to do. But the applicability will allow us also to capture the enterprise s" ]

[ "rades in multiple markets, including nearly $105 billion spent by U.S.\ncarriers for critical mid-band spectrum and over $65 billion in capex deployed by carriers into network investments across our global footprint. With mobile data consumption expected to grow at an average annual rate of more than 25% over the next five years in the United States and at even higher rates in some of our international markets, we anticipate prolonged network investment cycles to drive compelling, sustained growth rates across our regions. And while we believe our macro tower assets will continue to drive the vast majority of growth and returns for the company as 5G advances, we're also excited about additional opportunities that we expect to arise from the accelerating cloud-based interconnected and globally distributed digital transformation that is in its early stages today. We expect our recently closed CoreSite acquisition to augment our ability to capture potential upside from this transformation while enhancing the value of our existing portfolio of distributed communications real estate over time.\nWe anticipate these expectations to be underpinned by the continued execution of the four strategic pillars in our Stand and Deliver strategy, growing our assets and capabilities, driving industry leadership, operational efficiency, and extending our platform. As part of our commitment to growing our assets and capabilities to meet our customers' needs, we deployed more than $10 billion for tower M&A in 2021 focused on Europe, where we have meaningfully improved our long-term strategic positioning. We saw accelerated organic growth trends in the region throughout the last year, and we expect those trends to continue, supported by data growth projected at a CAGR of 26% over the next five years across our major European markets. Separately, we added strategic financial partners, CDPQ and Alliant, who joined our existing partner, PGGM, creating a solid platform for future growth and investment ahead of what we anticipate being an exciting decade in the European marketplace.\n", "In addition to expanding through M&A, we further grew our asset base through our internal capex program by investing $1.4 billion, primarily to construct a record of nearly 6,400 new communication sites, along with deploying nearly $120 million toward our energy efficiency investments, primarily in Africa. These investments continue to generate returns that are among the highest in our portfolio. Through our talented teams and operational expertise, we expect to remain a preferred partner to support customers as they execute on their network build-outs, which we expect to drive continued acceleration in our new site construction for the next several years while advancing our sustainability efforts and commitment to a greener mobile future. Through our commitment to enhance our industry leadership, we've continued our focus on sustainability by accelerating our efforts to combat climate change, as evidenced by our recent adoption of science-based targets for carbon emission reductions.\nThese targets represent direct and indirect greenhouse gas emissions reduction targets of at least 40% by 2035 against the 2019 baseline, as well as targets to reduce indirect supply chain emissions by at least 40%. To date, we've invested over $275 million in capex toward energy efficiency and reduction solutions, which directly support our committed targets and initiatives. Concurrent with our emissions reduction targets and renewable energy investments, we are actively working on various land stewardship and social impact initiatives. We're a member of the World Economic Forum's Edison Alliance 1 Billion Lives Challenge, which aims to spur development of affordable and accessible digital solutions across health, finance, and education to the underserved.\nThrough our involvement, we engaged with an array of high-level country and regional platforms and committed our time, expertise, and ideas to make digital access a top priority for all. Also this past year, American Tower was awarded a " ]

[ "y see approximately 85% of poly and not 80% of wafer, I think are made in China and currently, there is no alternative for U.S. to replace. So, we believe -- I think it is coming to both U.S. market and Chinese market -- for our producers. I think to address the issue ASAP, especially to reach the common. I think area -- that's I mean the carbon neutrality targets. So, I'm not worried about that.\nColin Yang -- Daiwa Securities -- Analyst\nThank you. Thank you, Longgen. So, lastly can I confirm one thing because I think I heard you mentioned bottom line growth of about 20% to 25% year-on-year in the long run. So, is this company's official guidance for like at least at 20% to 25% year-on-year growth of net profit for 2022, 2023 and beyond?\nLonggen Zhang -- Chief Executive Officer\n", "Okay. I want to emphasize that we cannot give the future I think forecast. The only thing is I say that because we just assume, let's say, next year the capacity, we can continue 50% expansion. Okay. As far as we finish the 4B, I think run a 40,000 to 50,000 metric tons, we're adding to the existing, I think, the plants. So, I think for next year, I just mentioned that assume the selling price for the first half of this year -- next year is around like a 1.50, second half of next next year is around like a 1.30. We believe the bottom line, definitely, I think that we can achieve 20% to 25% increase. In the future, we can only do is we will make efforts to continue expansion, the annual average, I think a rate our 50% to expansion the capacity, but we cannot guarantee the bottom line, really is because I cannot crystal ball the demand and the supply of polysilicon in the future. Just, I mentioned there, you see we on the supply side have two factors. All right. How much real polysilicon we can supply, how much if the technology shifted, just like you said from P to N, how much we can provide the N-type silicon. From demand side, we really don't know the potential market in the future, the growth. So, basically, I cannot answer your question in the future, but yes, we make efforts.\nColin Yang -- Daiwa Securities -- Analyst\nGot it, very clear. Thank you. Longgen. That's all my questions.\nOperator\nThis concludes our question-and-answer session. I'll now turn the conference back over to Kevin He for any closing remarks.\nKevin He -- Investor Relations\nThank you everyone for participating in today's conference call. Should you have any further questions just feel free to send us email or give us a call. Thank you. Bye-bye. Have a nice day.\nOperator\n[Operator Closing Remarks]\nDuration: 66 minutes\nCall participants:\nKevin He -- Investor Relations\nLonggen Zhang -- Chief Executive Officer\nMing Yang -- Chief Financial Officer\nPhilip Shen -- Roth Capital Partners -- Analyst\nGary Zhou -- Credit Suisse -- Analyst\nTony Fei -- BOCI -- Analyst\nLu Wei -- Bernstein -- Analyst\nColin Yang -- Daiwa Securities -- Analyst\nMore DQ analysis\nAll earnings call transcripts\n\n\n\n\n" ]

[ "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" ]

[ "Austin, Texas (CNN) -- A man accused of flying a small plane into an Austin building housing an Internal Revenue Service office last week was one of two people killed in the incident, Texas authorities confirmed Monday. The man who authorities say was the pilot, Andrew Joseph \"Joe\" Stack III of Austin, and Vernon Hunter of Cedar Park have been identified as the two people killed Thursday, according to the Travis County medical examiner's office. Both men died from blunt force injuries, said Sarah Scott, chief administrative officer for the medical examiner. Authorities say that on Thursday, Stack flew a single-engine plane into a seven-story building that held offices for nearly 200 IRS workers. Two other people were hospitalized. Hunter and his wife, Valerie, worked at the IRS office in the building, his brother Harold L. Jackson told CNN affiliate WAAY. Hunter spent the past 15 years as a collections agent and previously served 22 years in the Army. Jackson said Hunter was the youngest of five brothers. Hunter was adopted as an infant and kept his birth name into adulthood. \"We called ourselves the Jackson Five, the other Jackson Five,\" Jackson said. Agents were looking into whether the seats of the plane were removed to accommodate a fuel drum in an effort to cause maximum damage, an official familiar with the investigation said Friday. The official, who could not speak on the record because of the ongoing investigation, said that the Piper Cherokee PA-28 had several seats removed and that a fuel drum was missing from the airport where authorities say Stack took off. The single-engine plane has a fuel tank capacity of 38 gallons and is equipped with four seats, according to the Web site risingup.com. Authorities say Stack also torched his $230,000 home in Austin on Thursday morning before embarking on his fatal flight. A 3,000-word message on a Web site registered to Stack railed against the government, particularly the IRS. Read the apparent suicide note (PDF) \"I saw it written once that the definition of insanity is repeating the same process over and over and expecting the outcome to suddenly be different,\" the online message says. \"I am finally ready to stop this insanity. Well, Mr. Big Brother IRS man, let's try something different; take my pound of flesh and sleep well.\" Stack's wife, Sheryl Stack, expressed her \"sincere sympathy to the victims and their families\" in a statement read by family friend Rayford Walker on Friday. ", "Friends and former colleagues have said they had no inkling of the rage apparently building inside Stack. \"He hid that very well,\" said Billy Eli, in whose band Stack played bass until a few years ago. \"Obviously, he was in some serious distress and had some real despair. I never saw that.\"" ]

[ "n a little bit 5G performance is actually going to be, especially on the mobile side, going to start ramping and we believe that will be definitely boost up some of the areas -- in this area. On top of that, there is also the routers and switch related to the 5G. So we think this is going to be a bright spot for us.\nFor the computing as well, right, if you really think about and we talk about the data rate, we talk about the speed. So we believe the computing, especially high-end server and router and storage will continue to drive some of the upside momentum and opportunity for us, right?\nI think for consumer side, right, the IoTs, even related to 5G, that's actually going to drive some of the new demand in this area. So we pretty confident we continue to focus on the areas we've been talking about, right, 5Gs within communication, high-end server, storage within the computing area and IoT on the consumer side on top of the industrial automotive that we showed significant performance in both of those areas already, right. So that's -- we will continue to focus and that's not going to change in 2020.\nTianyan Goellner -- Sidoti -- Analyst\nOkay. But in 2019, I think all those three end markets were down like single digits or low-single digits. So should we expect the trend would be very similar in 2020?\nEmily Yang -- Vice President, Worldwide Sales and Marketing\nWhen you say single-digit, you mean the growth in single-digit?\nTianyan Goellner -- Sidoti -- Analyst\nYeah, correct. Yeah, correct.\nEmily Yang -- Vice President, Worldwide Sales and Marketing\nRight. But if you can see the overall market in Brett's comment, the overall market with our participated area 6.6% drop, right. So even with the single-digit growth, from Diodes, that still outperform compared to all our other peers in the industry, right.\nKeh-Shew Lu -- Director, President and Chief Executive Officer\nIf you look at minus 6.6%, plus 2.9%, then actually it's almost 10%.\nEmily Yang -- Vice President, Worldwide Sales and Marketing\nRight. Right.\nKeh-Shew Lu -- Director, President and Chief Executive Officer\nOkay, so.\nEmily Yang -- Vice President, Worldwide Sales and Marketing\n", "And then also, for example, in the computing area we are all aware off the Intel chipset shortage and stuff like that. We believe in 2020, the situation will improve based on Intel's announcement. So that's the other area that -- it's also driven by the market and also driven by the other vendors that are driving the market, as well.\nTianyan Goellner -- Sidoti -- Analyst\nOkay. That's very good. So my last question, if I may, would be for Brett, on the capex. You just mentioned that in the prepared remarks, that 5% to 9% of revenue would be the good assumption. So I'm wondering, considering in the third quarter and fourth quarter, that capital intensity was at like 7.9%. Should we assume at higher end of 5% to 9% or just the midpoint?\nKeh-Shew Lu -- Director, President and Chief Executive Officer\nWell, let me answer this because I will not allow, OK, the capex above our model, because our model is 5% to 9%. So I will not allow it. But only one case, if we alter the space in Chengdu then we will build at Chengdu another big building, another facility and the equipment and all. So when we -- out of the capacity of space for Chengdu, we do need to build the building, then that will be boost up our capex a little bit more. But fortunately, they are not depreciated in five years. They are depreciated in 15 -- it's 15 years. So it's not a big depreciation. Okay. So we will still try to keep it -- we will still keep it at 5% to 9% model.\nTianyan Goellner -- Sidoti -- Analyst\nOkay. Thank you. So that's all from -- for me.\nOperator\nThank you. At this time, I'm showing no further questions. I would like to turn the call back over to Dr. Lu for closing remarks.\nKeh-Shew Lu -- Director, President and Chief Executive Officer\nOkay. Thank you for your participation on today's call. Operator, you may now disconnect.\nOperator\n[Operator Closing Remarks]\nDuration: 50 minutes\nCall participants:\nLeanne Sievers --" ]

[ "game development is tilted toward mobile games. So launch of new PC games will be opportunistic. We do not have a regular agenda like we regularly launch new mobile games. So that's to your first question.\nSecond question, Harry Potter. We are very excited about Harry Potter. It is a strong IP globally and we are confident in our R&D ability to convert this IP into an exciting game title. I think it's too early to predict about the situation on regulatory approval in China. And when it comes to the stage when the game is ready for launch, whether we will do a global simultaneous launch or whether we will do overseas launch first followed by domestic upon the approval, both are possibilities and we will decide that later when the game is more advanced.\nNatalie Wu -- China International Capital Corporation -- Analyst\nGot it. Thank you.\nOperator\nWe will take our next question from Shi Jialong from Nomura. Your line is open, please go ahead.\nShi Jialong -- Nomura -- Analyst\nYes, good morning management. Thanks for taking my questions. First of all, congratulations on a very solid quarter. [Foreign Speech]\nI have two questions. First question is about NetEase online gaming business. Just wondering how much of NetEase online gaming revenue was contributed by overseas market in 1Q? My second question is about NetEase music business, according to various media reports, it seems to me NetEase music has accelerated the purchase of licensed content since this year, including the recent licensing agreement with top global record labels as well as the exclusive purchase of some of the highly rated music shows. I was just wondering why it seems NetEase music became more aggressive on content purchase? Thanks.\nWilliam Ding -- Chief Executive Officer\n[Foreign Speech]\nCharles Zhaoxuan Yang -- Chief Financial Officer\nJialong, first question. Overseas, first quarter our overseas revenue accounts for slightly more than 10% of our total game revenue, consistent with our level of last year, but we are very confident to continue to grow and even very strongly to grow this revenue contribution from the overseas game market in the next three years to five years.\nWilliam Ding -- Chief Executive Officer\n[Foreign Speech]\nCharles Zhaoxuan Yang -- Chief Financial Officer\n", "I'll provide a quick translation of William's remarks. So first of all our dedication to support and promote independent musicians and native IPs are not mutually exclusive with our deep respect and open minded, strong collaboration with music label companies. In fact, in the past, there are obstacles in the industry preventing us from purchasing music content and music IPs directly from label companies. We are very, very active and indeed a collaboration with all these highly regarded label companies in an effort to acquire music IPs, content copyright. And will utilize our efficiency and our massive user scale of the NetEase Cloud Music to distribute their music content to a group of music enthusiast lovers. And we also want to reiterate that we hope that the whole industry in China and all the players in China can spend more focus, effort and resources into promoting native IP, organic music from independent musicians because I think it is going to be a much bigger ambition for the entire industry to see the rising of Chinese music, Chinese musicians as a whole to play a much bigger role on the global audience, on the global stage.\nOperator\nOkay. We will take our next question from the line of Eddie Leung from Bank of America Merrill Lynch.\nEddie Leung -- Bank of America Merrill Lynch -- Analyst\nGood morning. [Foreign Speech] So my question is about the new game launch. Historically, when we have a big year of a lot of new games to be launched, typically the marketing spending ratio would go up. So just wondering what could be the pattern this year? And whether there would be different ways to promote new games? Thank you.\nCharles Zhaoxuan Yang -- Chief Financial Officer\nOkay. Yes. Eddie, your question is -- OK. Eddie, your question is on our outlook of marketing expenses. I want " ]

[ "ew center. I think it might be helpful just to kind of help us get our arms around the China opportunity.\nSorry, it's a little bit of a broad question but how do you see that channel evolving? And any updates maybe you could share or just remind us of the installed base today. Can China be as big of an opportunity as Europe or the U.S. over time? And what's the approval pathway and or any timing, maybe too early for timing, but for Genesis in China? Thanks for taking all the questions, David.\nDavid Fischel -- Chairman and Chief Executive Officer\nSure. Thanks a lot. It's actually a great question. And overall, China still is a small, small part of our overall business.\nWe have about five systems there. So it's kind of single-digit market share from an installed base perspective and -- but what we've seen in China is a lot of engagement with the physicians and customers there. Both in terms of their procedure volumes, they're highly, highly active and I think that's partially also driven by robotics. Enabling many more physicians there to do cardiac ablation procedures where otherwise they didn't have -- they didn't receive the training, or they didn't have the ability to do complex cardiac ablation procedures.\nThe training programs for electrophysiology there are still kind of less refined and kind of in the U.S. or Europe. And so we've seen kind of very high utilization of our systems in China and we've also seen kind of other companies which are kind of interested in working with us in China. And so we're going to be kind of prudent in anything we do and we don't kind of -- we will kind of advance things in a prudent fashion there.\nBut overall, I kind of a sense that there are actually very good opportunities in China to grow a robust kind of business and to collaborate with others. And I hope we'll be able to kind of provide more updates in the coming quarters.\nOperator\nThank you. [Operator instructions] We will take our next question from Jason Wittes with Northland. Please go ahead.\nJason Wittes -- Northland -- Analyst\nHi, thanks for taking the question. First off, you mentioned that you had an existing customer who had an order for a Genesis system. It sounds like that's not a replacement, that's an addition. Do I have that correct? And what are they doing with their old Niobe system?\nDavid Fischel -- Chairman and Chief Executive Officer\n", "No, so that is a replacement.\nJason Wittes -- Northland -- Analyst\nOh, that is a replacement. OK, so you do have one replacement booked this year thus far? Just to be clear. And --\nDavid Fischel -- Chairman and Chief Executive Officer\nAnd we have really -- we have one replacement that -- one of the five orders that we discussed last time was a replacement cycle order in Europe. And this is now the second replacement cycle, which is the first one in the U.S.\nJason Wittes -- Northland -- Analyst\nOK. Thanks for clarifying. And then, related to that, you said it sounds like they're also looking to add an additional system. Did I hear that correct?\nDavid Fischel -- Chairman and Chief Executive Officer\nThere's language in the contract which makes it likely that the hospital system will acquire an additional rollout this year. \nJason Wittes -- Northland -- Analyst\nOK. And then, you know, related to the third -- I think you mentioned it was 38 contacts and 20 visits this quarter. In terms of a breakout, in terms of what our new customers, what our existing customers, can you give us a sense of what that might look like?\nDavid Fischel -- Chairman and Chief Executive Officer\nSure. So yeah, it was 38 individuals on 23 separate TeleRobotic test drive visits. And 30% of those visits, so I think it was seven of them, were first discussions with greenfield opportunities.\nJason Wittes -- Northland -- Analyst\nOK. I think that's similar to what you were seeing last year or is it slightly different? \nDavid Fischel -- Chairman and Chief Executive Officer\nYeah, the rate is overall similar. You're correct. \nJason Wittes -- Northland -- Analyst\nOK. And then you mentioned, kind of your longer-term strategy" ]

[ "Two bombings in separate Iraq provinces on Monday killed eight U.S. troops, the U.S. military said. A boy with a machine gun weeps Monday at the site of a suicide bombing in Kanan that killed a sheik. A roadside bomb killed three U.S. soldiers and an interpreter in Diyala province, which has been a major front in the war during the \"surge\" of U.S. troops fighting insurgents near the capital. Earlier in the day, at least five U.S. soldiers on foot patrol were killed and three others wounded in a suicide bombing in Baghdad. In addition, suicide bombers killed five Iraqis in two bombings in Diyala province Monday morning, including a sheik who helped battle Sunni extremists and his 5-year-old niece. Watch new suicide tactics in Iraq » Four U.S. soldiers died at the scene Monday's Baghdad blast and one more died later of wounds, the military said. They were with Multi-National Division-Baghdad. An Iraqi interpreter also was wounded in the explosion, the officials said. Initial reports indicate the bomber was wearing an explosive vest. \"Five soldiers paid the ultimate sacrifice on behalf of the Iraqi and American people. I ask you remember these fallen heroes and their families as well as their wounded brethren in your thoughts and prayers,\" said Col. Allen Batschelet, chief of staff for Multi-National Division-Baghdad. \"We remain resolute in our resolve to protect the people of Iraq and kill or capture those who would bring them harm.\" The explosion marks the deadliest attack against the U.S. military since five soldiers were killed January 28 in a roadside bombing in Mosul. Troops killed a Saudi insurgent whose network was responsible for that attack. Earlier, an Iraqi Interior Ministry official said one person was killed and eight people were wounded in a suicide bomb attack targeting a U.S. military convoy in western Baghdad. It is not clear if the U.S. and Iraqi reports are about the same incident. Monday's attacks would bring the number of U.S. troops killed in Iraq this month to 10. A total of 3,983 military personnel have died in the nearly 5-year-old war. The attack came after a bomber near Baquba targeted the leader of a security group assisting U.S. troops. The teen suicide bomber killed a sheik and a 5-year-old, a day after she went to the sheik's Kanan home claiming to need help finding her husband, police and family members said. ", "The female suicide bomber, 18, blew herself up at the sheik's home Monday morning, police said. The tribal leader was the head of a local citizens group that has been working with U.S. forces to rout out insurgents. The largely Sunni security groups are known as Awakening Councils. Kanan is east of Baquba, situated in the volatile Diyala province, which has been a major front for the \"surge\" of U.S.-led troops targeting militants near Baghdad. According to one of the sheik's cousins, the teen bomber went to the sheik's house Sunday to ask him for help finding her husband -- thought to be kidnapped or detained. The 18-year-old was told to return Monday, the cousin said. She returned Monday and staged the attack, killing the sheik, his 5-year-old niece and one of his security guards, police said. The attack reflects both the growing use of females as suicide bombers in Iraq and the targeting of Awakening Councils, which are also known as Concerned Citizens Groups or Sons of Iraq. The grass-roots groups, which are sometimes led by former insurgents, have drawn more than 90,000 volunteers to their ranks, military spokesman Rear Adm. Gregory said Sunday. Since November, there have been at least five attacks carried out by female suicide bombers, including a twin bombing at Baghdad pet markets last month that killed almost 100 people. Insurgent groups, particularly al Qaeda in Iraq, are increasingly using women as suicide bombers because they are less likely to be searched, the U.S. military has said. About an hour after the attack at the sheik's home, another suicide bomber approached Iraqi security forces in" ]

[ "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." ]

[ "ns are driving increasing silicon consumption. I'll highlight three examples.\nCloud service providers are forecasting data center capex growth of more than 15% this year on top of record spending in 2020. With the broader adoption of 5G handsets, silicon content in smartphones is growing at double-digit rates. And in automotive, where there are known supply shortfalls, total semi consumption is expected to expand more than 15% this year, translating these factors to industry investments. In foundry/logic, leading-edge investments are very strong and have been well articulated by our customers.\nOn top of that, our ICAPs business that serves the IoT, communications, auto, power and sensor markets is expected to grow even faster and is on track to exceed $3 billion of revenue for the fiscal year. And then 2020 was a strong recovery year with spending up more than 30%. And in 2021, we expect customers to invest at modestly higher levels. In DRAM, supply demand fundamentals look more favorable than NAND.\nAnd as a result, we still expect DRAM investments to outgrow NAND this year. All of this adds up to a very strong demand environment for wafer fab equipment, and we believe this strength is sustainable well beyond 2021. Digital transformation touches every sector of the economy and is nondiscretionary for many industries. In addition, industry investments appear disciplined.\nWhen you look at wafer fab equipment intensities, that's wafer fab equipment revenues as a percentage of semiconductor industry revenues, they are well below recent peaks in all three of the device segments: foundry/logic, NAND and DRAM. Turning to Applied's business performance. Our semiconductor systems revenues for the first fiscal quarter were up 26% compared to the same period last year. At the midpoint of our Q2 guidance, semi systems will be up around 50% year on year.\nAnd based on our current outlook, we expect to again grow faster than the market for the year as a whole. There are a number of factors contributing to this outstanding performance. First, our business is very well balanced across devices and customers. Second, we have the broadest portfolio of products and capabilities, spanning materials creation, modification, removal and analysis.\n", "These technologies, combined with our ability to connect them in unique ways, are fundamental to enabling our customers' power, performance and cost road maps. And third, we have an incredible pipeline of new products and integrated solutions that are winning applications, expanding our served opportunities and reducing the time it takes our customers to bring important new innovations to market. Node-over-node opportunity growth in both foundry/logic and memory favors Applied's leadership businesses, including epi, thermal processing, CMP and PVD. In fact, we believe our PVD business can grow more than 40% this year and generate more than $3 billion of revenue.\nOur latest-generation products have strong momentum, and more than 25% of our 2021 revenues will come from critical applications that we've targeted and won since 2018. Some highlights include CVD, where we grew revenues 30% in 2020 and have strong customer pull for new, differentiated material solutions that are highly enabling for advanced patterning; conductor etch, where we're winning new applications in DRAM and foundry/logic that contributed to our 32% revenue growth in this market last year; process diagnostics and control, where we believe we can grow more than 25% this fiscal year on top of the 45% growth we delivered in 2020, thanks to new optical wafer inspection and e-beam products that are still in the early stages of adoption; in packaging, where we expect revenues to be up 50% year on year on top of strong growth in 2020. Also, over the past few years, we've started introducing a new class of highly differentiated products that we call Integrated Materials Solutions, or IMS. Our IMS products can combine multiple process technologies with onboard metrology and sensors within a single system that are capable of enabling unique films" ]

[ "inning the patent litigation and excluding patent-related interference, we applied for our innovative technology in the United States such as 5G millisecond network reselection and hyper-connectivity solution. In Europe, we invest in iQsim, the leading provider of open virtual SIM, VSIM, platform and VSIM-enabled mobile device based in France, which is an important component of our global investment.\nWe will also officially release our hyper-connectivity product and service in the near future and are proactively exploring opportunities in new industries such as internet of vehicle and education. We expect that widespread vaccination will continue to increase recovery of cross-border activities and the international tourism, which we expect will benefit our 1.0 international business. Leveraging our innovative technologies, we will continuously develop our 2.0 local business and various IoT application scenarios with new industries which require high-quality data connectivity. I will now turn this forward for our CFO, Shi Yimeng, who will go through the business and financial highlights section.\nYimeng Shi -- Chief Financial Officer\nThank you, Mr. Chen. Hello, everyone. Let us turn to Page 16 for our business highlight.\nThe data for the first quarter of 2021 shows that the impact from COVID-19 is becoming stable. Left-hand side of the slide shows daily active terminal, DAT, as of March 31, 2021. The uCloudlink 2.0 service, accounted for around 66% of the total DAT here in the first quarter of 2021. Average daily data usage per terminal was 1.98 gigabyte in March of 2021.\nLet us turn to Page 17, which shows global diversification of our business. Mainland China's revenue as a percentage of total revenues increased to 6% during the first quarter of 2021, compared to 5% during the fourth quarter of 2020. And then we had 94% of total revenue from outside Mainland China. During the first quarter of 2021, Japan contributed to 57% of total revenue and it continued to be the single largest market for our business.\nFor other countries revenue, the U.S. market had the largest contribution to our business. In the first quarter of 2020, we had 19% of total revenue came from Mainland China, 53% of total revenue came in from Japan, and 28% of total revenue came in from other countries and the regions. Let us turn to Page 19.\n", "So we go through our financial highlights for the first quarter of 2021. Service-related revenue as a percentage of total revenue decreased from 52% in the first quarter of 2020 to 47.4% during the first quarter of 2021. The development of our local data connectivity service business through our PaaS and SaaS platform contributed to the demands of the sales of products. Revenue from PaaS and SaaS service increased 18.3% from US$1.9 million in the first quarter of 2020 to US$2.3 million in the first quarter of 2021.\nThis increase was primarily due to the increase of business partner that used our PaaS and SaaS service to provide local data connectivity service. Revenue from PaaS and SaaS as percentage to the revenue increased to 13% during the first quarter of 2021. Let us move to Page 20, which shows revenue breakdown of our two business segments, namely revenue from service and the sales of products. During the first quarter of 2021, revenue from service and the sales of products accounted for 47.4% and 72.6% of total revenue, respectively.\nOur total revenue decreased by 47.2% from US$33.5 million in a three month ended March 31, 2020, to US$17.7 million in a three month ended March 31, 2021. Revenue from service were US$8.4 million, representing a decrease of 51.9% from US$17.4 million for the same period of 2020. This decrease was primarily attributable to the decrease in revenue from international and the local data connectivity service to a certain extent mainly because of the continuous and prolonged impact of COVID-19 pandemic. Our total revenue increased 3.9% compared to US$17 million in the first quarter of 2020.\nLet us turn to Page 21 for gross margin of our business. Our service gross margin and overall " ]

[ "t on more of our sites, as carriers deploy massive MIMO, and utilize DSS, or and then, any other tools they have at their disposal to optimize their network performance and efficiency.\nIn addition, as 5G and the surrounding ecosystem develops in the US, and is network technology continues to advance throughout our international footprint. We expect to have compelling opportunities to extend our core value proposition, into new related creative product and service offerings to expand our total addressable market. One of the key trends driving these opportunities is the continued convergence of wireless and wireline networks. We believe that this convergence along with increasing digitalization, network virtualization, and the agility of cloud-native software-defined services will lead to increasing demand for distributed, interconnected global edge compute processing.\nAs a result, the first mile of cloud on-ramps at this edge should become a more critical component of our customer's network architecture, and notably, this age is exactly where our exclusive communications, real estate assets are located. To capitalize on the opportunities this network evolution is likely to present, we are focused on developing communications infrastructure business models that augment the value of our existing assets, expand our revenue base beyond traditional tenants, and enhance our leadership role in the wireless ecosystem. At the highest level, our goal is to selectively extend our digital infrastructure core capabilities to further encapsulate neutral hosted wireless connectivity, transport, and compute functions as part of our comprehensive ATC platform. We can then offer tenants an integrated suite of complementary solutions to fit well within their ever more complex network designs.\nWithin this framework, we intend to remain disciplined in terms of how we deploy capital and believe ventures with select partners could be the most efficient way to develop this platform extension. We expect our investments to focus on business models with several key elements: first, contracted long term revenue commitments from Tier 1 customers.; Second, increasing ROIC with multi-tenancy, and multi-service offerings requiring modest ongoing maintenance capex; third, operating leverage characteristics similar to towers, we focus on our fixed costs; and for synergies and adjacencies with existing ATC assets and skillsets. So that General backdrop in mind, let me dive deeper into a few specific areas where we are currently focusing our efforts with one example in the United States, and one offshore. In the United States, as 5G deployments accelerate, we expect the proliferation of lower latency applications, and incremental cloud-based customer demand for application level and network compute functions at the edge.\n", "There are two distinct solutions within this emerging ecosystem that we are paying attention to. Distributed compute, and mobile edge compute. We believe that these two offerings will develop at different timelines and will allow us to provide differentiated valued propositions for our customers. On a distributed computing side, enterprise workloads continue to move to the public cloud.\nAnd a growing near-term market segment is the use of on or off-prem private cloud computing is a hybrid solution. Small and medium-sized businesses are often willing to move legacy workloads to more responsive, proximate, cost-effective data centers, and we believe that many data centers at some of our macro towers can represent optimal locations for these installations. We have started to deploy micro data center facilities at select tower sites, and have seen early indications of solid demand in collaboration with partners like Flexential. In the near-term, this solution enables us to develop operational excellence around the technology and iron out the kinks on a small scale.\nWith that said, we don't necessarily think this use case alone will be the long-term driver of significant value for us. We expect true 5G mobile edge compute solutions to represent " ]

[ " Second question.\nNeville Ray -- President of Technology\nYes. Thanks. Thanks, Simon. You've opened the door for me to talk about 5G network.\nLots to talk about.\nMike Sievert -- President and Chief Executive Officer\nThat's all the time we have.\nNeville Ray -- President of Technology\nI'll be brief. The in-home broadband story, it's just a tremendous testament to the progress we've made with rolling out at a really accelerated pace to our 5G network. I mean, we clearly have a very strong leadership position on 5G. It's significant.\nIt's durable. We are here to lead on this 5G story for years to come. And so we announced in the materials today our low-band network, now 320 million people covered, 97% of all Americans. Our mid-band footprint, our ultra-capacity 5G, which is where the 5G story really comes to life, 235 million people covered well on our way to 260 million by the end of this year.\nAnd that footprint covers 87% of T-Mobile customers today. So a tremendous progress. We're actually hitting some of the highest production rates in our two-year history rolling out mid-band, well over 1,000 sites moved into various radio upgrades on a weekly basis inside the month of July. So real momentum across the board.\nAnd what we can do on in-home broadband, to your question, Simon, is a real product. This in-home product, its in-home broadband product is a testament to our 5G network growth. And as Mike referenced, our Ookla report, if you look at the fixed broadband industry and the median speeds, it's lower than what T-Mobile is being recorded as delivering on a median speed basis. And so it's not just about footprint, it's about capacity and the spectrum story.\nAnd today, we have over 110 megahertz of dedicated mid-band spectrum on average across that mid-band footprint and over 30 megahertz of extended-range 5G spectrum. So 140 megahertz of dedicated 5G spectrum. And it's that capability of coverage, plus 5G depth and spectrum that allows us to push into these 5G broadband stories and this growth. And we are really -- I mean we're a year into this business, Simon.\n", "We're very confident about the projections and capabilities that we've mapped out over the coming years. But this network is really starting to now gain traction. The integration with Sprint is all over by the shelving, to be honest. two-thirds of the sites have been decoupled, less than 1% of the Sprint traffic -- customer traffic now on that legacy Sprint network, high confidence.\nWe will bring that to a close as we exit this quarter, and that's driving a ton of goodness. The spectrum that we can migrate and move across, the coverage and the capabilities that come with one very strong powerhouse network, and a little over two years from when we started this process. So great progress, very confident in what we're delivering, delighted with the speeds that we're delivering on in-home broadband. And I think we're bringing to the market probably the real first 5G use case.\nEverybody has been hunting for this thing. But in-home broadband, fixed wireless is here and it's here to stay.\nMike Sievert -- President and Chief Executive Officer\nSimon, one of the things that Neville said, I think, has been under discussed, which is how much spectrum we have against this leading mid-band 5G footprint. There's a lot of discussion about the fact that we have 235 million people covered with mid-band ultra capacity 5G, as compared to 70 for AT&T, 135 for Verizon, as they begin their C-band deployments. But what's really interesting is what Neville said about the depths of spectrum across that 235 on average. He said 110 megahertz of mid-band, plus 30 of low band, 140 dedicated to that 5G layer.\nAnd that's unique, and it will be unique for some time to come. And it really allows for the kinds of capacity throughput and performance that we've been talking about on this call. It opens up not just high-speed Internet opportunities, but really exciting opportunities in the business space that our competitors can issue press releases around, but where we're ready to execute and support" ]

[ "h being in the high-teens, low 20% range. Is that still intact? Which new markets are you planning to launch it in 2021? I heard five new markets in the prepared remarks. And how far behind is Omnipod 5 outside the U.S. compared to the U.S.? And I had one follow-up.\nShacey Petrovic -- Director, President and Chief Executive Officer of Insulet Corporation and Director, Exact Sciences \nGreat. Maybe I'll ask Wayde to give a little bit of insight into the overall expectations for international growth. There is nothing fundamental in the business that would change our long-term expectations for that business. It's just simply that we're in the midst of a pandemic and that there has been a slower recovery in particularly Europe and other parts of the world and particularly the United States. So we remain very bullish on our expansion strategy over the long-term. And that's why I mentioned in my remarks that we're really starting in earnest our expansion in early 2021. And over time, this adds significant addressable market to us over the coming years. We didn't give the five markets, so we'll lay those out for you as we enter into them. We did get one checked off the box this quarter in Belgium. So actually, one of the five we just entered. And we will let you know as we enter these markets that those launches have occurred.\nAnd then you had also asked, Larry, about Omnipod 5 in international. We haven't given a timeline on that yet. Just to let everybody know that that work is under way and we are fully committed to bringing Omnipod 5 to our European markets and to all of our international markets.\nLarry Biegelsen -- Wells Fargo -- Analyst\nThank you. And on Omnipod 5, do you guys typically announce when you have filed or submitted something like that? And is there any reason why the pivotal Omnipod 5 data would look much different from the pre-pivotal data we saw at ADA this year. For example, larger number of centers, anything that we should be aware of that would make that data, the pivotal data look meaningfully different from the pre-pivotal data that we should be aware of? Thanks for taking the questions.\nShacey Petrovic -- Director, President and Chief Executive Officer of Insulet Corporation and Director, Exact Sciences \n", "Sure. Thanks, Larry. And we don't -- our practice is not to notify or become public when we submit. We simply share the news when we're cleared. So that's our general practice. In terms of the data, I really don't have much insight to offer there. We don't want to preview it. Obviously, the pre-pivotal data look very, very strong and we are very excited to get the Omnipod pivotal data out there. But I don't want to give insight into just how it compares at this point.\nLarry Biegelsen -- Wells Fargo -- Analyst\nUnderstood. Thank you.\nShacey Petrovic -- Director, President and Chief Executive Officer of Insulet Corporation and Director, Exact Sciences \nThanks, Larry.\nOperator\nThank you. Our next question comes from the line of Jeff Johnson from Baird. Please go ahead.\nJeff Johnson -- Robert W. Baird & Co. -- Analyst\nThank you. Good afternoon, guys. Maybe just a couple of clarifying questions. Wayde, you mentioned Omnipod 5 pricing and thoughts on a premium potentially for next year. I thought that was kind of settled at this point that you probably were going to go after access more than pricing just to try to get it out there faster and even more broadly across accounts in that. So just -- is there being -- is there a reconsideration happening that maybe you could get a premium for O5 or how to think about that?\nWayde McMillan -- Executive Vice President, Chief Financial Officer and Treasurer\nYeah. It's still a question for us, Jeff. And there is a lot of different opportunities for us across the U.S. in particular. But like you said, a major consideration for us is getting us out to our customers as fast as possible. And we certainly take into consideration the current environment that we're in other AID systems that are in the marketplace and we also know that there is a significant opportunity for us " ]

[ "ing it out. The way the supply chain works is we will literally provide that part -- that cover part.\nSo both the underlying structure of the glass structures as well as the material we use to drive that composite had to be able to improve the optics and durability of those cameras. So we've built the supply chain to be able to have that rural end to really the same plants that ultimately glass parts go to build phones. So we feel pretty good that we have the capability and we've built the capability to serve the market. And so now it will be how quickly will the technology be adopted because it is new.\nIt is a new feature for phones. It does improve camera performance pretty darn significantly. So we're hoping that that becomes pretty rapidly adopted. One thing that's going to impact pacing though is when you change the light -- the capturing capabilities of a camera.\nRemember that cameras are pretty complex devices, right? So you have the whole lens system and you have different chipsets to deal with that imaging and they're built around an optical chain. That is a certain amount of light that's available. So we're actually improving that. And so as you improve that to take full advantage of it, you probably need to optimize some other component so.\nSo we do think that though it is relatively easy and optimal, there are things that you would need to do differently to take full advantage of this to deliver an advantage and customer experience.\nMartin Yang -- Oppenheimer & Co. Inc.-- Analyst\nThat's really helpful. Thank you.\nAnn Nicholson -- Vice President of Investor Relations\nNext question?\nOperator\nComes from Shannon Cross with Cross Research. Your line is open.\nShannon Cross -- Cross Research LLC -- Analyst\nThank you very much. I have a big-picture question. During the script you noted build projects you've undertaken from 2016 to 2019 have an ROIC of over 20% and your kind of this is my work but in a harvesting mode on some of those. How should we think about the cases of the investments you've made over the last few years? Just in terms of thinking about how you maintain sort of the continued benefit from -- I don't know where you're investing in so that in four years you can say that the ones you've done right now are yielding sort of a similar growth rate? I'm just trying to understand the building blocks that get us to the future strong revenue growth, given what you've done in the past four years.\nThank you.\n", "Tony Tripeny -- Executive Vice President and Chief Financial Officer\nSo yeah, sure, Shannon. That's a great question. I mean the first thing I would say is as our focus right now is on what we call our extended capital, and that extend capital is you know how we continue to grow in our businesses. And a lot of the growth that we're experiencing right now really comes from the investments we've made the last couple of years from the extend capital in addition to the build capital and we'd expect that -- we've got a lot of extend capital that we're putting in place right now, and that's going to continue to support our growth going forward.\nGiven our More Corning trends and our innovation model and the opportunities that we see out there that really gives us a chance to perform much better than the underlying market, I'm sure at some point we will be back at looking at build capital and when we do that you know we'll do that with real customer commitments, including financing. So we think this is a great model to run our business with. It's really improved our capital efficiencies, it's improved our return on invested capital and I think from a shareholder standpoint, this is a great way to run our businesses.\nShannon Cross -- Cross Research LLC -- Analyst\nGreat. Thank you.\nAnn Nicholson -- Vice President of Investor Relations\nLet's take one more question before we close.\nOperator\nOK. And that comes from Meta Marshall with Morgan Stanley. Your line is open.\nMeta Marshall -- Morgan Stanley -- Analyst\nGreat. Thanks. Just maybe following up on the last question. Wendell, you guys mentioned kind of supply constra" ]

[ " resilience for utilities, which is precisely the value proposition of our advanced digital solutions. Pre-pandemic, the business case was already very compelling. But as utility operators worked heroically to keep essential services running, the stresses of the pandemic made it clear that new approaches are required.\nRemote monitoring, automated operations and smart infrastructure more broadly continue to see increased demand. Backlog in our advanced digital solutions grew 70% year on year. Although it's from a small base, the trajectory is clear. It puts us in a very attractive position as we grow not only in software platforms, but in all of the digitally enabled parts of our portfolio.\nGeographically, India and China will continue to drive high growth. Despite experiencing COVID's earliest impacts, China actually grew last year. And in the three years leading up to 2020, India and China posed a combined average annual growth rates in the double digits. With localization strategies well advanced in both countries, our China and India teams are set to continue delivering impressive growth.\nIt's also worth mentioning a very solid financial foundation underpinning our growth. With the current cash balance of nearly $1.9 billion, capital deployment is clearly top of mind for us. Even with some debt repayment during the fourth quarter, that number still offers a lot of capacity. Alongside organic investment, M&A remains a top priority, and we intend to be proactive in our deployment of capital, wherever the investment case warrants.\nWe remain disciplined about valuations, but we do see opportunity for additional investments over the next 18 months. Growth is also important to our creation of social value. We are in the very privileged position that sustainability is baked into our business model and strategy. Our portfolio of solutions has a net positive impact, not only on water, but on a wide range of sustainability outcomes.\nWe took several bold steps on sustainability in 2020, most notably, our green bond offering. And performance across these metrics continues to put us in a unique leadership position, both in the water sector and more broadly. The team's progress has strengthened our position on a number of sustainability indices. We were recently added to Bloomberg Barclays MSCI Green Bond Index.\nDespite that gratifying recognition, we have so much more work to do to achieve our 2025 sustainability goals and to deliver on our mission. I'm now going to turn it over to Sandy to provide end market and segment outlook.\nSandy Rowland -- Chief Financial Officer\n", "Thanks, Patrick. Through 2020, utilities have been reassuringly resilient, down only mid-single digits. As you see in the fourth-quarter results, M&CS and Water Infrastructure revenues held up better than anticipated. Still, our outlook for 2021 reflects a tempered view that utilities have not seen the end of the pandemic impacts quite yet.\nWe anticipate our utility business overall, which is just north of 50% of Xylem revenues, will grow in the low to mid-single digits in 2021. We expect that same growth rate on the wastewater side as utilities continue to focus on mission-critical applications. And we expect modest recovery in opex growth on a global basis through the year. In the U.S., wastewater capex is likely to be down modestly.\nHowever, the decline should reflect postponements rather than reductions in projects. As you would expect, we have kept close to our utility customers to understand how they are thinking about budgets and funding for this year. And while some uncertainty remains, their deepest concerns have largely abated since the low point of the pandemic. On the clean water side, we anticipate mid single-digit growth.\nAs I mentioned, large project deployments should begin ramping again from the second quarter, accelerating through the end of the year. The large multiyear metrology deals that we won in 2020 set us up for solid growth this year and beyond. In industrial markets, we've seen good sequential improvement. Short-cycle orders and project " ]

[ "tial decommissioning that T-Mobile can do? I think the Sprint sites are up for renewal next year. And second question on Lat Am. How do you think about the growth going forward, given that the macro environment is weaker and the potential acquisition of or by other carriers could potentially create some churn activity? Yes. I would like to see your thoughts on how you think that could impact your growth over the next few years.\nThank you.\nTom Bartlett -- President and Chief Executive Officer\nYes. Thank you. OK. Batya, with regard to — I'm going to address the Lat Am question first.\nI mean we're really excited about the opportunities that we continue to see down in the market, particularly in a market like Brazil, which is still so underserved. I mean, you could take a look at customers per site, it's significantly higher than what we're seeing in the United States. And so we continue to see the opportunities for further densification, where our build programs continue to grow. So we're actually very energized.\nAnd our teams in the markets are very excited about the opportunities there. Yes. There is some consolidation perhaps going on in the market, but that was fully understood, fully expected. So there are really no surprises there.\nAnd I think the government themselves, particularly with regards to what we're seeing in the pandemic, continue to want to drive connectivity and digital connectivity in their markets. So we're quite excited about that. And Oi, as you all know, represents a relatively small piece of revenues. I'm sorry, Batya, your second question on the U.S.\nside was?\nBatya Levi -- UBS -- Analyst\nOn the T-Mobile decommissioning activity that would come, that could start potentially next year?\nTom Bartlett -- President and Chief Executive Officer\nYes. No. You're right. I mean, those Sprint sites, a vast majority of those sites come up for renewal toward the end of next year.\nWe believe they're obviously very well-positioned sites, and we will likely try to mitigate it. But that current potential is possible and hopeful that between the new build that's going on in the marketplace, as well as DISH's expectations for building out, that will be successful in terms of mitigating that. But that's all part of a lot of the negotiations and discussions that are going on as we speak.\nBatya Levi -- UBS -- Analyst\nGot it.\n", "Rod Smith -- Executive Vice President, Chief Financial Officer, and treasurer\nAnd Batya, if I could, Batya, I'll just add a couple of comments on the Sprint, T-Mobile, maybe to put the merger kind of in context with the U.S. markets. So you know that the U.S. is experiencing kind of an exploding growth in mobile data, about 30% a year increases.\nWe've seen accelerating deployments for 5G kind of heading our way. There's a number of new spectrums heading into the market that will have to be built out. The carriers continue to invest heavily in 4G as they focus on their customer experience and strengthen their networks to handle the growing data demands. So all that is really constructive in terms of what's happening in the U.S.\nlandscape. When you look at T-Mobile, in particular, their deal comes with pretty significant buildout requirements. So they've said that they're going to spend $40 billion over the first three years, build an additional 10 to 15 sites, particularly in some of the rural areas where they're expected to cover 97% of the population on low-band spectrum, about 75% on mid-band spectrum within three years. So they've got an awful lot of work to do.\nThey're certainly going to be deploying capital. So we continue to believe that it's been in their best interest and good for our shareholders as well, to the extent that we can enter into an arrangement where they can have quick access to our sites and potentially renegotiating the way some of the churn happens over time. So to spread that potential churn, which is we continue to believe it's in the range of 3% to 4% of our overall property revenues, that's the overlap piece. And we continue to expect that, that could be spread out over" ]

[ "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 " ]

[ "nsed operating system. And I personally, as we said before, we don't think that's sustainable. And you see that in the market share, generally declining for these legacy TV companies as companies like Roku license ROS and gain share.\nAnd so in the U.S., I think you're going to see a lot of our share growth come from decline in share from the usual big Tier 1 TV companies, which has been happening and will continue to happen. There was a bit of a -- if you look into the details, it was a little bit of a reversal of that trend, slightly, recently, due to supply chain issues because it was easier to get TVs out of non-Korean -- sorry, out of non-Chinese companies, countries. It's particularly hard to get TVs shipped and built out of China, and our partners are primarily Chinese. So that impacted us more, but that's temporary.\nAnd I think that general trend, that the world will move entirely to a licensed OS is -- will continue to happen, and that will be a source of growth in the U.S. Internationally, there's -- we're just newer to the market there. And so every time we enter a country, we're displacing existing TV companies. And like I said before, consumers like our products and our market share continues to grow, it starts growing immediately once we enter a country, and we're seeing good results.\nSo we're going to continue to push on international and domestic expansion of accounts. There's lots of ways to keep growing it, and that's what we're going to keep doing. I mean if you think about the big picture, we believe all TV is going to be streamed. That means there's 1 billion broadband households around the world.\nThey're going to get all their TV through streaming. So a pretty small percent of those are actually doing that today.\nScott Rosenberg -- Senior Vice President, General Manager\nHey, I'll take the second part of your question, which I think amounts to do we see any near-term feelings or limitations in our ability to keep scaling the ad business? And I'd say that's generally not a concern of ours. First of all, as Anthony has pointed out a few times in this call, there's still a pretty significant gap between user engagement and the ad investments. So there's a lot of headroom there. We're also -- as fast as we're growing, we're still -- we still sell a minority of the ads on our own platforms.\n", "So there's a lot of inventory flowing through the Roku platform for us to both sell as well as through our OneView Ad Platform to add value. So even if the transaction isn't our own media sale, even if it's a publisher on our platform, we can apply the same identity data optimization capabilities through our OneView Ad Platform that our advertisers have come to expect when they're buying media from us directly. You talked about ad load, which I heard is like would we float the ad load up. We're pretty passionate about the user experience here and not floating the ad load up.\nBut there are lots of other opportunities in the Roku experience to create consumer-friendly touch points for brands. And this is part of why we've invested in the Roku Brand Studio. It gives brands an opportunity to author content with us, put together experiences, content first, content-led experiences that are brought to you by that brand. So that's a particularly interesting dimension for us to keep growing the ad business in beyond 15 and 30 second in-stream spots, and we've got a lot of interesting executions we're doing there.\nWe also keep getting better at optimizing for outcomes, whether that's driving a consumer to visit an advertiser's website or buy a product. And that gives us pretty good leverage too because the better we get at that optimization and especially as our clientele mixes over time to what we think will be a more heavy focus on outcomes our ability to keep optimizing means our inventory will work harder both for Roku and for our advertisers. So all to say that I think there are a lot of dimensions of continued growth for the ad business going forward.\nOperator\nThank you. Our last question comes from the line of Jeffrey Rand" ]

[ "heir announcement, a couple of the new models out by the way, but a couple of the new models are still not out. And so we'll see that over time. And I mentioned 5G earlier. This is the first year that the iPhone's really have 5G capability, which is a real positive. But when will consumers really get excited about 5G, we don't know for sure, but as I mentioned earlier, we're now well positioned to support our carrier partners with 5G when it happens.\nBrian Meredith -- UBS -- Analyst\nGreat. And then two quick questions here on Global Housing. The first one, the underwriting initiatives that you guys intimated, maybe a little more color on what those were? And what the impact was on the underlying combined ratio? So I assume that's going to be sustainable here going forward.\nAlan B. Colberg -- President and Chief Executive Officer\nYeah. Richard, you want to might take that one.\nRichard Dziadzio -- Executive Vice President, Chief Financial Officer\nYeah, sure. Sure. Good morning, Brian. Yeah. I think the changes that we made in the underwriting were across a couple of different products. So first would be, we've talked about it before, small commercial. We had gone into that. That didn't have a positive experience with it and then put it into run-off. So obviously that will persist in the future because we have no plans to get back into that, so that's one positive. And then within the sharing economy, I think we mentioned on a call earlier in the year, we hadn't had one type of product with one client, we weren't getting good experience with and that we underwrote to. So again, I think there we have -- we've gotten good results out of that and are moving forward with positive results.\n", "The part of your question which is how -- what will persist or not. We have had within the non-cat loss ratio some positives this year that won't reoccur. For example, some reserve releases of a limited amount that we mentioned in our prepared remarks of about $8 million. Those won't continue, we don't think. We've also had a really good run in terms of lower frequency, severity and things like theft and vandalism. Will that continue, that's sort of a question mark in terms of how that will go in the future. So there are some things that will continue, some things that probably won't, the reserve releases, and then some things we'll wait to see what happens in the future with our experience.\nBrian Meredith -- UBS -- Analyst\nGreat. And then just one last one on the Global Housing segment. It's been a fairly active year obviously for catastrophe losses, given what's going on with global warming and stuff, meaning some people expect us to be more the norm in the exception. I guess my question then is, does a year like this year make you kind of question your reinsurance program, changes to the reinsurance program may be meeting more aggregate cover to kind of mitigate some of the volatility in the business?\nAlan B. Colberg -- President and Chief Executive Officer\nYeah. Maybe I can offer a few thoughts and then Richard you should offer a few more. I mean if you look at the last few years, we've dramatically changed our exposure to cat. We've done things like taking the retention down to $80 million where it is today from $240 million five years ago. We've exited certain lines that we were participating in the Caribbean. We've reduced exposure by exiting the small commercial business and so we do feel very good about the portfolio and it's performing well. If you look at through the third quarter even with an active cat year, our ROE in housing is something like 14% or 15%. So it's still performing and delivering well. And with that said, every year we revisit how we think about the risk reward trade-offs on the cat program. And Richard, maybe you want to comment a little more on how we're thinking about that in 2021.\nRichard Dziadzio -- Executive Vice President, Chief Financial Officer\nYeah. Thank you. And I think, Alan, you hit on a lot of the very key points, which is part of cat is managing the exposure to cat. So we're very thoughtful in terms" ]

[ " customers' visibility, we are, therefore, now comfortable with our earlier guidance of 35% annual growth for 2022. In line with that, we will manage our expenses prudently in the second half of this year. But our original thesis remains intact. We firmly believe that our longer-term top line growth will be 30% or more driven by the SAM expansion to $4 billion, the greater need for precision timing and fulfillment of those needs uniquely by SiTime.\nWe also continue to see a long-term financial model of 65% gross margin and 30% net income as being intact. We continue to invest significantly in the development of new precision timing products. In 2022 itself, we will sample six of these oscillators and clocks. These address the macro trends that I referred to that are transforming electronics, high-bandwidth communications, cloud, EV and IoT.\nWith these, we are confident in our ability to transform the electronics industry driven by greater adoption of these products. We expect that the stellar comms enterprise performance will continue into the second half with the volume ramping up of applications like 400G, 800G optical modules and data center switches. In our last call, we talked about a clock family with 200 customers by the end of '22, and that strength continues. 60% Of the Cascade, the clock family, revenue in '22 and '23 will now come from midcars, 5G RRU, and backhaul.\nOur investment in this segment is working. In 2022, comms enterprise is expected to grow to over 25% of our revenue compared to 16% last year in 2021. For example, again, our Elite product is expected to grow three times in revenue over 2021. The value and uniqueness of SiTime products is also clearly on display at our largest customer, which is in the mobile IoT consumer segment.\nOur revenue here continues to grow strongly in the second half of 2022, and the design win funnel continues to grow strongly as well. In the previous call, we have spoken about the strength of aero defense business. We're now engaged with the top defense contractors worldwide and our funnel continues to grow as they discover the strength of our unique precision timing products. The uniqueness of these SiTime products comes from the uniqueness of SiTime technology.\n", "We've always maintained that our MEMS, analog circuits and the systems, putting it together to deliver a system solution is hard to do. In the past decade, we have not seen a credible competitor that is using similar technologies, and we don't see one on the horizon currently. A great advantage for SiTime during the turmoil of the past two years has been the flexibility and the solidity of our supply chain. We've made great inroads with customers because our supply chain has been proven to be superior to that of our existing -- to that of the existing suppliers in the market today.\nThat strength continues due to the support of TSMC, Bosch and our OSAT partners. Given that a majority of our customers are single sourced, our supply chain strength continues to be a competitive advantage for SiTime. In conclusion, as a category creator of precision timing, SiTime is uniquely positioned to transform this industry. We believe that our long-term growth and market share gains will continue unabated in the future.\nWith that, I'll now turn it over to Art Chadwick, our CFO.\nArt Chadwick -- Chief Financial Officer\nGreat. Thanks, Rajesh, and good afternoon, everyone. Today, I'll discuss second quarter results and provide some comments on Q3 and the year. I'll focus my discussion on non-GAAP financial results and refer you to today's press release for a detailed description of our GAAP results, as well as a reconciliation of GAAP to non-GAAP results.\nSo as Rajesh mentioned, Q2 was a record revenue quarter for us. Revenue was $79.4 million, up 13% sequentially and up 78% over the same quarter last year with exceptional strength in our higher-end, higher-performance products. Sales into our mobile IoT and consumer segment, which consists of sales into mobile phones, wearable devices and consumer products, were $27.0 million or " ]