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[ "\"You break it, you buy it...\" Clark Howard says shoppers may save money if they keep their hands off the merchandise. \"Look, but don't touch...\" \"Keep your hands to yourself...\" Three tired platitudes you might hear in the world of retail that all suggest a direct connection between the power of touch and the act of buying something. Now a new study in the Journal of Consumer Research confirms what many have long believed, when you touch something in a store, you feel a sense of ownership and you're more likely to overpay for that item. That's why retailers like Apple always encourage you to play with the merchandise. First and foremost, the Journal of Consumer Research study presents a real caveat emptor for your wallet during a recession. And second, it confirms that I have the reading habits of a really dull guy! Hear a few interesting tips for saving money at the grocery store » The warning for you is that if you don't want to spend money, don't go out and handle the merchandise. Whenever I shop at Costco Wholesale, I never get a cart. I only buy what I can carry in my two arms. Once my arms are full, I'm not constantly picking up new items along the way to the register. You'd be surprised how you can cut down on your bill using this simple trick. But there's a further caution in the study. Even window shopping or browsing online can prove dangerous for your budget. The study's authors talk about the power of visualization. They suggest that if e-tailers can get you to picture yourself owning something -- even if you really can't afford it -- they have a better chance of converting you into an online sale. The question of why people spend money in ways that don't make sense is one that's addressed by behavioral economics. It's a field of study that used to be discredited in serious academic circles. But now it's proving to be an important discipline as people look for new ways to save more and spend less. A 2008 study in The American Journal of Psychiatry found that about 1 in 16 Americans -- that's some 6 percent of us -- have compulsive spending habits. This kind of behavior leads to a momentary rush of adrenaline, but afterward comes the financial hangover. Christa, my radio show's executive producer, has done a lot in her life to take control of her wayward spending habits. ", "She believes that if you're always buying new clothes, for example, you disrespect the things you already have in your closet. When the shopping bug bites you, try paying attention to the stuff you've already acquired in your life. Speaking of closets, I once owned a house built in 1937. The master bedroom's sole closet was all of 2 x 1.5 feet in dimension! During those Great Depression years, that was big enough for a middle-class husband and wife. Today, a closet of that size would never work. Some people have so much clothing that they can go for months without wearing the same thing. So the best way to tackle compulsive spending is with shock therapy -- you've got to ban yourself from stores! Let's say you're prone to go on a shopping binge when you feel blue. You've got to make sure you don't even get into the car to go to the store or the mall. Go for a walk or go to the park if it's a nice day. If you have a conditioned response that's bad for you, you've got to work to change it. And the next time you're tempted to pick something up while shopping, remember the study in the Journal of Consumer Research. Or if that's too pointy-headed for you, just start humming the refrain from that old song by the Georgia Satellites: \"Don't hand me no lines and keep your hands to yourself!\"" ]

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[ "espread across geographies there.\nOn health, we've had historical intellectual property there, but that's probably an area of investment for us, and we're seeing that accelerate as well. We've historically been strong in retail, in manufacturing. Those are coming back, I would say, the insurance and the space. The space environment as an industry, the space sector is an area that we see. We've been strong on the government side, but as it moves into commercial, that's an area that we have opportunities in. And then same thing in energy and utilities as they make the transition.\nSo these are some of the areas that we're seeing growth in and that we are strong in and across our various geographies. And again, some of that is intellectual property and some of that is domain expertise that we have. We tend to match in technology, but we don't go to market by technology because it's really -- it's the intersection of technology and the domain expertise. And as I mentioned, when you're leading with technology, that's when we saw a lot of our clients accessorizing, but now they need to go deeper and more holistic, and we think that's a better value proposition for CGI.\nOperator\nThank you. The next question is from Steven Li from Raymond James. Please go ahead. Your line is open.\nSteven Li -- Raymond James -- Analyst\nThank you. Hey, George, Francois, you spoke about continued positive momentum on organic growth. Can I take this as meaning improving organic growth, 4%, 5% into the next year?\nGeorge D. Schindler -- President and Chief Executive Officer\nWell, Steven, thanks for the question. As you know, we don't give specific guidance. But yes, as you look at the increased bookings for the last several quarters, the pipeline and demand environment that we continue to see, the fact that a number of those engagements are for new work as we've been discussing, that's what gives us the confidence to say that we're seeing an accelerating demand or accelerating growth environment for CGI. I'm not going to put a number on it, but certainly, we see accelerating.\nSteven Li -- Raymond James -- Analyst\n", "Okay. Great. And then on Scandinavia, I see quite a bit of improvement on EBIT to 5%. But revenue is still challenged. So two questions. So one is, can the profitability get to where the other European regions is? And secondly, on the revenue challenges, actually with our [Indecipherable] Acando with scale would help. But do you see a turn in the revenues there?\nGeorge D. Schindler -- President and Chief Executive Officer\nYes. So we do. I mean, we kind of hit a perfect storm with the combination of services we have, the integration and the pandemic. But we see -- we focus first on making sure that we preserve shareholder value. So thanks for pointing that out. That's the starting point, but there's a lot of work that's been done to make sure that we're not just adding revenue, but we're adding the right revenue. And that takes a little bit of time, but we see that coming back in the next couple of quarters.\nSteven Li -- Raymond James -- Analyst\nAnd George, the profitability, does it need the revenue growth to keep on improving?\nGeorge D. Schindler -- President and Chief Executive Officer\nNot one for one. We think that we can continue to get the profitability improvements. Again, that's part of rehabilitating the type of revenue that we have. But the growth will just -- we'll continue to have that rise to the level of the rest of Europe. And I didn't answer that part of the question. But yes, there's nothing structurally that tells us that the Scandinavia region couldn't and shouldn't be able to reach that.\nAnd quite frankly, we talk about Scandinavia as a whole, but the reality is that individual Denmark, we're doing extremely well on both the revenue and the margin side. Obviously, there's pockets even of Sweden where we have that, really, we're focused on the main city center Stockholm, which, of course, is very large and drives a lot of this. But there's nothing structural in that area that won't allow us to do that.\nSteven Li -- Raymond Ja" ]

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[ "ve through time as technology improves. It's pretty hard to believe how fast it's moving these days. So that's probably what I can give you on EV for now and we'll start -- we're thinking more and more about how we can start to describe this to you better in the future. As far as growth markets, you're right, it's massive growth. I think the big one is obviously in India where we're planning to go from something like 1,400 sites to 5,000 sites. So that's the vast majority of the growth inside that and, let's wait for March 2nd if you don't mind Martijn and we'll see if there is more we can disclose inside that space. And Martijn, I don't have a number at my fingertips right now, but we'll come back and we can maybe answer some questions in that space in March when we start to expose more of the stuff.\nBernard Looney -- Chief Executive Officer\nGreat. Reasonable question. And I don't have a number either, so we'll come back in March. Craig?\nCraig Marshall -- SVP Investor Relations\nOkay, great. Thank you, Biraj. We will take the final question from Anish Kapadia at Palissy. Anish?\nAnish Kapadia -- Palissy Advisors -- Analyst\nHi. Thanks for taking the question. Just a couple of questions, please. Firstly, you disclosed a substantial gain in non-operating businesses I think from one of venture capital stakes. I was just wondering is that your -- sorry, I don't think it was a sale. I think it was a revaluation. Would that potentially be the current stake? Or if not could you give a bit more details on what that was? And just kind of thinking about in the context of are there opportunities to realize some of those gains in over the course of the year? And then just a second quick one, on your marketing, I think you revealed for 2019 about $3.7 billion of earnings. I was wondering if you could just give the comparable figure for 2020? Thanks.\nBernard Looney -- Chief Executive Officer\nMurray?\nMurray Auchincloss -- Chief Financial Officer\n", "We'll come back on your second question on March 2nd. I just don't want to misquote anything. So we'll come back on March 2nd with the year-over-year in that particular area. And, yeah, you've got it right on where it came from in 4Q in OB&C, it's equity on [Indecipherable] as you say. So that's something for the future.\nBernard Looney -- Chief Executive Officer\nVery good. Anish, thank you.\nCraig Marshall -- SVP Investor Relations\nOkay. That's the end of the questions. Again, thank you everybody for listening. As usual, IR are available to answer any follow-up questions. And we do look forward to talking to you. As Murray and Bernard described, we look forward now to early March and the update around our disclosures. There'll be more information in due course around that. But maybe on that note, let me hand over to Bernard for some closing remarks. Thank you.\nBernard Looney -- Chief Executive Officer\nVery good. Well, thanks, Craig, thanks, Murray, and thanks to you all for taking the time to join us. A difficult quarter with some difficult numbers and complexity to explain. But I think if you step back from all of that, the plan that we have laid out remains the plan. Our business is running well. The world will recover and is recovering and we're very well positioned to take advantage of that and we're executing on our strategy step-by-step, day-by-day in a very disciplined fashion. So all the while, focused on the basics of running a good business. So we appreciate your interest. We appreciate your questions and I'm sure we'll be following up with you in the hours and days and weeks and months ahead, and I wish all of you and your families a safe and healthy 2021. So take care and we'll be in touch with you.\nDuration: 117 minutes\nCall participants:\nCraig Marshall -- SVP Investor Relations\nBernard Looney -- Chief Executive Officer\nMurray Auchincloss -- Chief Financial Officer\nJon Rigby -- UBS -- Analyst\nAlastair Syme -- Citi -- Analyst\nLydia Rainforth -- Barclays -- Analyst\nPaul Cheng -- Scotiabank -- Analyst\nDan Boyd -- Mizuho -- Analyst\nThomas Adolff -- Credit Suisse -- Analyst\nChristyan Malek" ]

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

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[ "ioned that in the conversations they've had with world governments, World Bank, how capitals flow around the globe in the investment community.\nAnd so when these markets open and here markets not only geographically, but also think about it from an industry perspective, the fact that MSCI creates indexes attracts many billions of dollars of capital into that space. And I gave the example of maybe an early stage biotech index or an oncology index or you name it, it can be many others then what is likely to happen over time is that as products are created like the ETFs or mutual funds to focus on that specific theme or new market, capital flows and then companies end up getting additional capital to fund their research. So it's a very interesting phenomenon, but one that we -- and like just the whole -- the development of thematic indexes and life sciences is also going to make the whole life sciences investment opportunity more understandable, more accessible to investors, and this will attract capital. So it's quite interesting from that perspective.\nAnd I think it -- so I'll let Chris answer this other question about impact to life sciences from big trends.\nChris Hite -- Vice Chairman\nSure. Thanks, Pablo. And, Andrew, thanks for the question. I think as it relates specifically to the intellectual property waiver, we don't see that as something that's going to impact our business long term.\nI know the ideas have been floated, and obviously, there's global pandemic. And from a compassionate perspective, you want to get as many vaccine doses around the world as you possibly can and there's probably more efficient ways -- actually, just transfer excess doses once the supply is there as opposed to trying to waive intellectual property. And with know-how, obviously, these vaccines are very difficult to make, the manufacturer. So I think it's probably more efficient ways to get the vaccines around the world than just waiving intellectual property.\nWe don't see the need for compassion use right now as impacting intellectual property laws going forward, so we don't see that as impacting our business going forward.\nOperator\nThere are no further questions. I'd like to turn the call back over to Pablo Legorreta for concluding remarks.\nPablo Legorreta -- Founder and Chief Executive Officer\nSure, operator. Thank you. Thank you to everyone on the call for your continuing interest in Royalty Pharma. My team and I look forward to continuing to share our progress with you.\n", "If you have any follow-up questions, please feel free to reach out to George. And thank you for joining the call, and I hope everyone has a good week. Thank you.\nOperator\n[Operator signoff]\nDuration: 61 minutes\nCall participants:\nGeorge Grofik -- Senior Vice President, Head of Investor Relations, and Communications\nPablo Legorreta -- Founder and Chief Executive Officer\nMarshall Urist -- Executive Vice President, Co-Head of Research, and Investments\nJim Reddoch -- Executive Vice President, Co-Head of Research and Investments, and Chief Scientific Officer\nTerry Coyne -- Executive Vice President, Chief Financial Officer\nChris Neyor -- J.P. Morgan -- Analyst\nGeoff Meacham -- Bank of America Merrill Lynch -- Analyst\nTerence Flynn -- Goldman Sachs -- Analyst\nGreg Gilbert -- Truist Securities -- Analyst\nKathy Miner -- Cowen and Company -- Analyst\nDavid Risinger -- Morgan Stanley -- Analyst\nMike DiFiore -- Evercore ISI -- Analyst\nAndrew Baum -- Citi -- Analyst\nChris Hite -- Vice Chairman\nMore RPRX analysis\nAll earnings call transcripts" ]

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[ "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" ]

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[ "ng.\nAnd if you look at the size of our inventory versus the size of our cost of goods sold or revenue quarterly, you can see that we run pretty close to just-in-time through our entire supply chain. And we've been able to do it and sustain that. And so what we're reporting to you like 20% year-on-year growth on semiconductor components is, in our view, a pretty decent reflection what is truly end demand needs out there. All right.\nNext question.\nOperator\nThe next question comes from Timothy Arcuri of UBS. Your line is open.\nTimothy Arcuri -- UBS -- Analyst\nThanks. Hock, I guess I wanted to ask you what you think the long-term growth rate is of your semiconductor business. You're sort of trending to the high teens this year, but that's kind of due to easy comps and you have the compressed iPhone launch and the pull forward of some of these technologies due to the pandemic. So once this all sort of normalizes, what do you think is the right long-term growth rate for the business? Are you still thinking 5%? Or do you think maybe just given the strength of the bookings recently that it could be better than that? Thanks. \nHock Tan -- President and Chief Executive Officer\nThat's a hell of a question, and I'll tell you this. Right now, we're in the midst of a very strong demand, and that's also created perhaps, as we all know about, a severe imbalance between demand and supply, demand and supply works to catch up. But if you look at it long enough, I think the dynamics underlying -- the fundamental dynamics underlying the semiconductor industry hasn't yet changed. At least I haven't seen it change.\nSo, Tim, that's the best answer I can give you, which is I haven't changed my thinking, if we look over the next 10 years, how this industry will behave because it is a relatively mature industry. It's evolutionary. Technology is still evolving, which is great for us. And it keeps getting better and better.\nBut it's evolving. Disruption, as people like to say in this industry, is less of an event. It's evolutionary. And I have not seen anything that tells me there's a fundamental change.\nTimothy Arcuri -- UBS -- Analyst\nThanks.\nOperator\nThank you. Our next question comes from Craig Hettenbach of Morgan Stanley. Your line is open.\nCraig Hettenbach -- Morgan Stanley -- Analyst\n", "Thanks. Hock, just given the ongoing strength in free cash flow and improved balance sheet, can you just talk about your thoughts on the M&A environment and also -- and/or buybacks, how you're thinking about cash deployment as you go forward?\nKirsten Spears -- Chief Financial Officer\nYeah. I'll take that one. This is Kirsten. Relative to capital allocation, first and foremost, we're dedicated to paying 50% of our free cash flows to our shareholders.\nAnd so that would be first. Secondly, M&A, if we can -- accretive M&A, it would be the second objective. Then thirdly, stock buybacks, and at the end, there would be debt repayments. So I think that's how we're looking at capital allocation in that order.\nThere isn't anything yet on the M&A front that I can talk about. But if anything does come up, we'll let you know.\nOperator\nThank you. Our next question comes from Blayne Curtis of Barclays. Please go ahead.\nBlayne Curtis -- Barclays Investment Bank -- Analyst\nHey, good afternoon to you. Just curious, a little more detail on the gross margin. It's a record gross margin. Any color on product or segment? And then I guess as you look forward here, if you could describe what you're still dealing with in terms of excess costs due to COVID and then how to think about it as enterprise comes back.\nShould that be additive to the gross margin?\nKirsten Spears -- Chief Financial Officer\nI expect gross margin next quarter to be about the same as it was this quarter. And then as you know, at the end of the year, we're expecting wireless to come back in for the normal ramp that we have. And so the margins will come down a bit toward the end of the year. But at this point, I see us being able to sustain the margins that we experienced this quarter, mostly coming from networking and " ]

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[ " in our mind, a multitude of architectures, CPU to XPU, or including graphics and AI capabilities, memory, security, and last but not least software. And you'll remember that we talked about those as the six pillars of technology required to deliver product leadership where the process is very important, but it's not the only thing.\nSo that's kind of the strategy we've been on for the last couple of years. But secondly, we're going to continue to invest in process technology. So, yes, some of the progress we made on 7-nanometers over the last couple of quarters is important for the next generation of process technology. So as we leverage our six pillars of technology to deliver leadership products, we will also continue to invest in next-generation process technology beyond 7-nanometer.\nPat Gelsinger -- Incoming Chief Executive Officer\nLet me just add a couple of points to that. This is Pat again. As we said, here we believe the majority will be on our 7-nanometers, but we will be increasing the use of foundry capabilities in that time frame as well. Overall, it is about building as Bob said, a competitive product that is leadership in the marketplace and that's what our intent is do and as we broaden the use of our technologies across packaging, software, internal and external, we are confident that we can deliver a leadership product family in the marketplace across all of our major product categories.\nAdditionally, I was also very pleased to see some of the long-term innovations coming out of TD right, as we work to close any gaps with external foundries as well as leap ahead. And clearly, we're not interested in just closing gaps, we're interested in resuming that position of the unquestioned leader in process technology and that's our commitment. Also with the IDM model, we believe we have the right combination of being able to deliver supply to meet our customers' requirements by leveraging internal and external capabilities, which our competition doesn't have. And between all of these capabilities, we believe, we are striking the right balance of internal and external to deliver an unquestioned leadership product in the marketplace that meets our customers' requirements for the long-term.\nVivek Arya -- Bank of America Merrill Lynch -- Analyst\nThank you, Bob and Pat.\nOperator\nOur next question comes from Ambrish Srivastava, BMO\nAmbrish Srivastava -- BMO Capital Markets -- Analyst\n", "THi, thank you very much, Bob. Thanks, I really enjoyed my interactions with you. I had a question for you, Pat and I don't believe everything I read in the press, but, and even if you did look at the opportunity earlier, I just wanted to get a feel from you. What really appealed to you when you looked at this opportunity versus your very successful stint at VMware, and especially in light of the challenges Intel has had, which we could argue where Bob inherited from before.\nSo can you just help us understand kind of what are the challenges and the opportunities that you saw, which got you to this role again. And welcome back by the way.\nPat Gelsinger -- Incoming Chief Executive Officer\nWell, thank you very much and a few general comments would be, one is, this is a great company and one that I have just great history with as I said 30 years as part of this company, Grove, Moore, Noyce, these are the people that I grew up right at their feet of learning and to me, it really is a privilege and an honor to come back to this company, as I said, my dream job. Second, this is a national asset. This company needs to be healthy for the technology industry for technology in America, and to me, it's an opportunity to help and to unquestionably put Intel and the United States in a technology leadership position. So I'm excited by that opportunity to do that.\nIt was also very exciting to see the unity of the board in calling me to the role and with that working closely with the board and their enthusiasm to bring me into the company as well as the alignment on the look-forward strategy that we're laying out and those together and I say the timing was" ]

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[ "hat relates to your outlook for the next quarter? Thank you.\n[Foreign Speech]\nDaniel Zhang -- Executive Chairman and Chief Executive Officer\nOkay. Let me answer this first. As we said before our China retail, our Tmall will grow like 10% in the March quarter and in Tmall we have our FMCG and consumer electronics. The combined growth rate in the March quarter for these categories on Tmall was about 25%. But if you want to get a big picture of the future development, I think in my remarks, I gave you a very clear, I mean our latest, I mean indicator, which is starting from the new year, the quarter-to-date, overall speaking, our China retail marketplace growth rate is similar to those in the December quarter. So I think that's basically the big picture of where we are today, but we do hold people realize understand that there is still uncertainties about containing the pandemic. So we will closely monitor the situation, but we strongly believe that the consumption power in China is still very strong, but we will take our advantage in the digital platform to continue our leading position.\n[Foreign Speech]\nYeah, let me add one more point which is like, if you look at the past fiscal year, we generated $1 trillion GMV in Alibaba ecosystem, but if you look at our China retail marketplaces, the GMV we generated last fiscal year was about like RMB6.5 trillion and, if we look at the -- if we look at what happened in the March quarter, I think we should have achieved a higher GMV, if without this pandemic obviously. But we are very confident that in the new year, I think we will achieve another like a net add of like an RMB1 trillion -- at least RMB1 trillion GMV in our China retail marketplace, which is I think, still, a very strong number compared to the size of our business in China.\n[Foreign Speech]\nRon Lin -- Head, Investor Relations\nOkay. Next question.\nOperator\nThank you. Next question comes from the line of Gregory Zhao from Barclays. Please go ahead.\nGregory Zhao -- Barclays -- Analyst\n[Foreign Speech]\n", "Thank you and congratulations on the strong performance. My question relates to cloud services. We know that internationally players like Microsoft and Google, who have already achieved a significant scale in terms of the size and the revenues continue to be able to maintain rapid growth in their revenues and even acceleration. Looking at China, however, in the cloud space Alibaba and its competitors seem to be seeing a different trend where things are somewhat slower. So I'm wondering if you could compare for us please the China market versus the international for cloud, what are the differences underlying that picture and what are the short-term bottlenecks and how would it be possible potentially to make a big leap forward in terms of accelerating revenue and profit growth in the cloud.\nDaniel Zhang -- Executive Chairman and Chief Executive Officer\n[Foreign Speech]\nThank you. Well, first I'd like to say that in the past year Alibaba Cloud Intelligence hit a very important milestone namely reaching revenue of RMB40 billion and even in the March quarter achieving 58% growth. So we don't see a slowdown at all, we think the growth is good.\n[Foreign Speech]\nWe see this growth coming from several different areas. One is the demand across all sectors of the economy to get on to the cloud. And if you look at Chinese IT spending, in the future we can expect to see more and more spending going forward as organizations get themselves on the cloud.\n[Foreign Speech]\nThe second thing I would point to is that the cloud is not just a way of providing infrastructure, infrastructure on the cloud to lower IT-related operating costs. It's also an opportunity for companies to leverage on big data and cloud-enabled computing capacity to achieve better efficiencies and drive value for the business and different kinds of algorithms and analytics will be developed in the cloud for different sectors for different verticals, different product solutions to meet those needs, and unleash new value for them. So it's not just about saving costs on IT i" ]

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[ "lish, very positive, and optimistic outlook for the long term that we're very happy to strongly reiterate because we've seen nothing more than, than broadband become more and more relevant in our marketplaces. And because of that, we want to have the ability to prudently invest in the business. That means we want to continue to invest adding mobile sites.\nWe're adding successfully so capacity and coverage in our markets. And we want to continue to do that to expand our 4G coverage in the year to almost 80% of the total population in our markets with LTE expansions in Guatemala, Panama, Paraguay, Bolivia. And we also want to continue to modernize our networks because it's working. The subscribers are, quite frankly, loving it, particularly in Colombia.\nAnd we also want to invest in cable because we see continued growing demand. As I said on the call, we're now at the same run rate in Q4 that we were before the pandemic, at $400,000 per year. So, we want to have all the flexibility to continue to invest. So, when you combine the two things, our very bullish outlook for the long term with our desire to invest for that and then the possibility that the recovery may be dampened or take longer, then we need to strike a very cautious tone for 2021; and at the same time, give ourselves the ability to invest for the long term.\nSo when you put all that, what we're basically saying to you is, guys, we're going to guarantee $1.4 billion -- think of it as a floor. We're going to guarantee in dollar terms, $1.4 billion. And let us just take it from there and give us the flexibility to manage on the upside like we did in 2020. I hope that gives you a full vision of why we're doing this and why we think this is a smart approach, Stefan.\nStefan Gauffin -- DNB Markets -- Analyst\nYes. That's -- that's clear. Thank you.\nOperator\nThe next question is from Peter Nielsen of ABG. Please go ahead.\nPeter Nielsen -- ABG Sundal Collier -- Analyst\n", "Thank you very much. I'd like to address two of your good markets. One Guatemala has, of course, been strong throughout this year, which I think is remarkable and -- and even stronger in Q4. Do you see any -- any changes to that coming into this year? And also, just on Colombia, where Tim highlighted the underlying positive trends adjusted for the -- for the one-offs in Q4 last year.\nWe've obviously spoken at length before about the new entrant, et cetera. Do you think Colombia can continue to show underlying positive growth this year? So, just focusing on these two markets, please. Thank you.\nMauricio Ramos -- Chief Executive Officer\nThank you, Peter. Yes, these are part of the reason why our performance is so good over the last few months is because these markets are performing very well for us. On Guatemala, in particular, indeed, we had record mobile net adds this year, just north of 0.5 million, 5% year on year. And now we have more than 1 million mobile subs.\nAnd we've also been growing our home customer base on 90,000 net adds for the year. And indeed, we're having consecutive quarter of growth in both service revenue and EBITDA. We've invested in this business, Peter, significantly. So, we bought additional spectrum.\nWe've put the carriers on that spectrum. We've improved that network significantly. And as a result of that, we're seeing strong performance. Now going forward, this remains a healthy two-player market, in which behavior has been very rational.\nAnd at the point in time in which we've seen competition kick up, we reacted very, very well and very smartly. So, I remain very positive, very, very positive on Guatemala without a doubt. And the same is true on Colombia. And you've seen the -- the numbers in Colombia really start to show the effects of the investment that we put into the marketplace.\nWe added a record 878,000 mobile net adds in the quarter. We now have more than 10 million mobile users there. So we crossed a point mark there. And we added 33,000 HFC customers in the quarter.\nAnd our results, good as they are, a little distorted because we didn't have some of the government con" ]

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[ "BEIJING, China (CNN) -- China's foreign minister Wednesday rejected criticism of its human rights record, accusing the United States of \"clinging to a Cold War mentality\" and \"practicing double standards.\" Workers at the Beijing-Tianjin Intercity Fast Railway, a key project associated with the Beijing Olympics. Yang Jiechi was responding to questions about a State Department report released a day earlier that characterized China's human rights record as one of the most repressive in the world. The report was released five months before the Summer Olympic Games kickoff in Beijing. Although he chided the United States and other critics of its human rights record as \"making confrontation,\" Yang stressed that China is \"ready for dialogue with the United States, as long as it is done in an environment of respect and fairness.\" Despite rapid economic growth and social change in China, the report said the \"authoritarian\" Chinese government \"continues to deny their citizens basic human rights and fundamental freedoms.\" It also said there was an increase in forced relocations in Beijing, with people being thrown out of their homes to make way for Olympic projects. \"China's overall human rights record remained poor in 2007,\" it stated, citing tightening controls over religious freedom in Tibet and the Uyghur population. China announced Sunday that militants in Xinjiang's Uyghur Autonomous Region had planned to carry out two terror attacks, including one targeting the Olympics set to begin on August 8. China said it successfully thwarted both attacks. The autonomous region is home to about 19 million people, most of whom are Muslims and other minorities. Many of them oppose Beijing's rule. The State Department report also said China has increased its efforts to \"control and censor the Internet, and the government tightened restrictions on freedom of speech and the domestic press\" and bloggers. It cited a 20 percent increase over 2006 in convictions of citizens under what it called China's overly broad state security law that is often used to silence government critics. \"The government continued to monitor, harass, detain, arrest, and imprison journalists, writers, activists, and defense lawyers and their families, many of whom were seeking to exercise their rights under law,\" the report said. \"Individuals and groups, especially those deemed politically sensitive by the government, continued to face tight restrictions on their freedom to assemble, their freedom to practice religion, and their freedom to travel.\" The report, issued annually, surveys the human rights record of more than 190 countries around the world. ", "In rolling out the report, Secretary of State Condoleezza Rice said: \"No corner of the Earth is permanently condemned to tyranny. Change may take time, but change will come.\" E-mail to a friend CNN State Department Producer Elise Labott in Washington and Beijing Bureau Chief Jaime FlorCruz contributed to this report" ]

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[ "nsion from terminal sales to user operations. All of this product and technology innovation, IoT experience, as well as the service optimization are the key drivers of our long-term development. The construction of China's 5G infrastructure has demonstrated rapid development. An era of the commercial application of IoT is on the way.\nAccording to data released by IDC, 85% of devices will be connected to the Internet and 15% will be connected to IoT by 2022. It was pointed out in the guidelines for construction of the National AI Standards System, launched by the Ministry of Industry and Information Technology and other national official departments in last July that smart home product and application will be promoted as one of the important industries in this area. We believe that with the rapid application of 5G and the continuous improvement of smart home ecology, IoT will be applied in more and more home scenarios. We are confident in our leading position in this industry, as well as our capabilities to deliver robust and stable growth while maintaining a healthy level of profitability, bringing long-term value to our shareholders.\nThat concludes our founder's remarks. Let's now turn to the detailed financial review of the fourth-quarter 2020, as well as the outlook for the first-quarter 2021. The net revenues were RMB 1.89 billion, representing year-over-year increase of 8.5%. The growth was slightly below our previous guidance by just around 0.6% primarily due to the proactive step to stop the sales of some specific products with lower average selling prices and lower gross margins, such as some low-end refrigerators and washing machines, in order to make room for the launch of a slate of new large-screen refrigerators and high-end washing machines, as well as to improve the profitability.\nRevenues from IoT @ Home portfolio increased by 15.7% to RMB 1.11 billion from RMB 963.7 million for the fourth quarter of 2019, primarily driven by the sustained sales increase for certain new product categories, in particular, our sweeper robots. Viomi-branded sweeper robot business is expected to make greater contribution in 2021. Revenues from our home water solutions decreased by 5.9% to RMB 363 million. The decline was primarily due to the decreases in the average selling prices of our Xiaomi-branded water purifiers products.\n", "This was partially offset by the successful introduction and increased sales of our new series of Viomi-branded water purifier products, which narrowed the year-over-year decline for home water solutions compared to the previous quarter. Viomi-branded water purifiers are expected to make greater contribution in our home water solution business, as well as our total net revenues in 2021. Revenues from consumables increased by 69.3% to RMB 160.2 million primarily due to increased demand for our water purifier filter products. Revenues from small appliances and others decreased by 15.5% to RMB 251.2 million primarily due to product portfolio optimization for higher gross margin in this category.\nGross profit increased by 28% to RMB 443.8 million, and gross margin was 23.5% compared to 17.1% for the third quarter of last year and 19.9% for the fourth quarter of 2019. The quarter-over-quarter and year-over-year increases in gross margin were primarily driven by our efforts to shift the business and product mix toward higher gross margin products, including the rollout of our new Viomi-branded water purifiers and sweeper robots, alongside the optimization of margins across product lines. As Mr. Chen discussed, the meaningful recovery in gross margin was in line with our quality growth strategy, demonstrating our business flexibility and strong execution capabilities.\nAs we continue to phase out our lower-margin products and focus our efforts on generating greater revenue contribution from higher-margin product categories and SKUs, we do expect to experience not full degree of gross margin recovery in 2021. The total operating expenses increased by 21.3% to RMB 331.8 million primarily due to the growth of our " ]

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[ "Photographers have their own version of sleight of hand. They can manipulate people, objects, landscapes and light in images, fooling lesser humans into believing the final product is a representation of reality, rather than something created by hand. In the old language, we called this \"trick photography.\" Now, in the PC age, we just call it \"Photoshop.\" The latest version of Photoshop, the flagship image-editing application in Adobe's Creative Suite, adds a new stack of cards to the photographer's trick deck. Wired.com was shown demos of new tools in Photoshop CS5 -- such as the new Content Aware Fill and HDR tools -- that we expect will amaze and please photographers with the tools' ability to bend pixels with absolute precision. Photoshop CS5 will arrive as part of Adobe Creative Suite 5, the company's package of 14 productivity apps for visual designers, photographers and publishers. Creative Suite 5 will ship later this month (or possibly early May) according to Adobe. Prices for the suite range between $1,300 and $2,600 depending on which package you buy, with upgrades priced between $500 and $1,500. Photoshop CS5 alone will cost $700, or $200 for an upgrade. Photoshop CS5 Extended, which has some additional tools, will cost $1,000, or $350 for an upgrade. This year marks the 20th anniversary of Photoshop's arrival, and there are certainly several \"wow\" features in Photoshop CS5 which achieve a level of technological advancement most of us couldn't have even dreamed of twenty years ago. Most impressive is the new Content Aware Fill brush, a mind-bending tool that can remove large objects from photos, altering the background to make it realistically appear as though the object was never there. It can zap tourists, delete power lines and otherwise alter photos with click-and-drag ease. This video shows it most plainly. Fast forward to about the halfway point if you want to see the really crazy stuff. (When this video first started making the rounds in March, some thought it was a hoax. It's not -- this is a real feature of Photoshop CS5.) As with any new tool in Photoshop, expect Content Aware Fill to be overused: A surfeit of tourist-free images of Machu Picchu will soon be littering Flickr. But beyond the novelty, it's a truly useful touch-up tool that turns what used to be hours of work into a simple drag of the brush. ", "Speaking of brushes, all of the painting features in Photoshop -- neglected since the release of Photoshop 7 -- have been rewritten. The app now features much more realistic interactions. If you use a digitizer tablet, you'll find that your brushes are considerably more responsive. The angle of the stylus now controls the edge of the brush and the new paint mixing tools control color blending, wetness and bristle length, making for a very life-like painting experience. Another bit of Photoshop trickery that's become popular lately is high dynamic range imaging, or HDR. The Flickr crowd is crazy for it, and Adobe has responded by improving Photoshop's Merge to HDR tool, which helps you create HDR images. The new HDR tool now has 14 HDR presets which can save considerable effort when hand-toning an image. The HDR presets shipping with Photoshop range from the cartoonish to the fairly realistic, and should satisfy all but the pickiest of HDR enthusiasts. Composing a real HDR image requires multiple photos taken with multiple exposures, but now you can fake it. Photoshop CS5 has a new set of tools to create what Adobe calls \"single image HDRs.\" The results will never quite match a true HDR with multiple images, but the new single image HDR toning dialog lets you get pretty close using just one file. Also incredibly helpful for HDR fans is the new \"remove ghosts\" tool in the HDR dialog, which makes it simple to eliminate ghosting and artifacts caused by differences between your layered HDR images. With Photoshop CS5, you can simply outline a ghosted area (say, for" ]

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[ "ments, there aren't a lot of trend differences when we look at our international business around the world. And we often look at this between the mature and the developing or the mature and project-oriented markets, and there aren't significant trends in the data that show that one is driving growth more than the other. Again, we're in a unique position where all markets are driving riding growth trends, and it's for different reasons. The food security population growth issues, some of those longer-term drivers are certainly impacted in those developing markets, strong commodity prices are impacting those mature markets like Australia, New Zealand, Brazil and Western Europe. So we don't see a lot of differences that are interesting right now. And for different reasons, again, we're seeing growth in all of those.\nHow long it sustains itself and are those growth rates going to sustain or increase? We continue to see good long-term market drivers in those markets. So predicting whether the rate or the slope of the line will increase/decrease is maybe difficult to do right now, but we do believe in the long-term growth and the potential in both the mature and developing markets internationally.\nJon Braatz -- Kansas City Capital Associates -- Analyst\nOkay. Thank you. Brian, the backlog is up rather significantly. You mentioned some supply chain issues and so on. How much of an influence or how much did those issues impact the backlog number? Is it significant?\nBrian L. Ketcham -- Senior Vice President & Chief Financial Officer\nI wouldn't say because of delivery constraints or anything like that, Jon. Lead times obviously have extended, but both domestic and international backlogs are up. Obviously, the biggest increase is related to the $36 million Egypt project. But when we look at Brazil, that backlog is up more than double what it was a year ago. But it's -- the backlog is up in all of the international regions. In North America, at the end of the spring selling season, but the backlog is still up year-over-year.\nJon Braatz -- Kansas City Capital Associates -- Analyst\nOkay. How extended are the lead times now versus maybe a year ago?\nBrian L. Ketcham -- Senior Vice President & Chief Financial Officer\n", "In the US, I think as the volume -- seasonal volume drops off, I think the lead times are getting shorter, again, kind of more in that traditional, let's say, three to four-week time frame. But Brazil, obviously, as I mentioned, some of the longer lead times there, you could go five or six months. So it varies from different parts of the world.\nJon Braatz -- Kansas City Capital Associates -- Analyst\nOkay. All right, Brian. Thank you very much.\nBrian L. Ketcham -- Senior Vice President & Chief Financial Officer\nThank you.\nOperator\nNext question is from Nathan Jones with Stifel. Please go ahead.\nAdam Farley -- Stifel Nicolaus -- Analyst\nGood morning. This is Adam Farley on for Nathan.\nBrian L. Ketcham -- Senior Vice President & Chief Financial Officer\nGood morning, Adam.\nAdam Farley -- Stifel Nicolaus -- Analyst\nI was wondering if you could help us with the cadence of the Egypt project, is it going to ramp up once it starts shipping in June or should it be more evenly split?\nBrian L. Ketcham -- Senior Vice President & Chief Financial Officer\nYes, this is Brian. I would think about it this way, $36 million project really spread over the next three quarters. Weighted probably more heavily to fourth quarter, first quarter of 2022 with the remainder going to the second quarter.\nAdam Farley -- Stifel Nicolaus -- Analyst\nOkay, thanks. And then shifting over to the infrastructure business, could you just provide an update on the Road Zipper project funnel and maybe any additional color on when you think some projects are going to begin to convert? Thanks.\nRandy A. Wood -- President & Chief Executive Officer\nYou bet. We're still very pleased with the shift left strategy that we've deployed in Road Zipper, and we continue to put projects into the funnel. We continue to manage projects through the funnel. And in terms of total dollars, w" ]

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[ "ards.\nOne key facet is that it will be the RingCentral brand going forward. And so what it means is there will be a faster time to market. So we'll begin the sales and channel enablement fairly quickly. But in terms of contributions, I think we'll start to meaningfully layer on contributions in the back half of '22 following device compatibility.\nAnd then we have this very unique CloudLink architecture, which will further unlock demand after that. Now if you take it a click up, right, for all the partnerships, right, for 2022, you will have all the three As contributing, and you'll have Mitel layering on. And one final thing to note on these partnerships, Bhavan, is that it's -- these partnerships are just not a one-and-done. The benefit of these partnerships come year after year with a steady drumbeat and really extend the durability and the maturity of the financial model and really increase the terminal value of RingCentral significantly. \nBhavan Suri -- William Blair -- Analyst\nGot you. Got you. Super helpful. Congrats, and, Mitesh, thanks again. \nMitesh Dhruv -- Chief Financial Officer\nOf course.\nOperator\nThe next question comes from Terry Tillman with Truist Securities. Please go ahead.\nTerry Tillman -- Truist Securities -- Analyst\nHey, good afternoon, Vlad, Anand, and Mitesh. Congratulations from me as well. And in the spirit of probably trying to embarrass Mitesh, I would say you've come a long way from being a fellow sell-side analyst over a decade ago when we'd sit at these analyst days together. So the tremendous job you've done, particularly on this consistent financial execution quarter after quarter, all the metrics, the unit economics and really trying to create a narrative that was a good aid for myself and investors.\nSo congrats on everything and good luck going forward. Now with an actual question. It looks like when I'm looking at fourth quarter, particularly the subscription revenue, the guidance, it looks stout. It actually looks stronger than what typically you provide, and I know you try to be conservative.\nBut maybe you could help us kind of unpack what's the confidence or what are the drivers that's driving that, I think, much stronger than I anticipated subscription revenue guide for 4Q? And that's my only question. \nMitesh Dhruv -- Chief Financial Officer\n", "Thank you, Terry. Yes, thank you for the kind words as well. It has been a long journey since I used to be your bag carrier. So we'll try to do that once in a while.\nBut in terms of your actual question, look, there's always -- there's no change to the guidance philosophy. We still guide with our usual prudence and leave a fair amount of optionality in the guidance and hope to outperform as we always do. So in terms of -- so what's driving the confidence? That's a fair question. It's a couple of things.\nIt's higher visibility from two or three things. So the first one is the full impact you see from Q3. It's a recurring revenue business, so the full impact shows up in the fourth quarter. That's point number one.\nPoint number two, the pipeline. The pipe is at a record high. So that also allows us to have a very high visibility. And number three is our earnings is a week later on.\nSo we did get to see a full month of October and the momentum thereof. So net-net, we've got multiple growth engines firing with our MVP, and UCaaS and CCaaS demand together is pulling forward. And with the increased pipe, it gives us enormous confidence for the Q4 guide. \nTerry Tillman -- Truist Securities -- Analyst\nThat sounds great. I'll probably be carrying your bag, though, for -- to look at that correct there. Thank you.\nOperator\nThe next question comes from Brian Peterson with Raymond James. Please go ahead.\nBrian Peterson -- Raymond James -- Analyst\nI'll add to Bhavan and Terry's comments. Mitesh, it's really been a pleasure to work with you, and you're going to be sorely missed on these calls. But you are kind of dropping the mic here with the quarter, the guide and then the Mitel partnership. But I want to start on another topic.\nWe're just going to get this" ]

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[ "ter of the metropolitan and jyou start densifying metropolitan, you see a lot of wireless hauling, front-hauling, backhauling, all sorts of technologies on the table that drive that change.\nAnd we believe this will start to being converted into -- into revenues and significant orders in the second half of the year. Giving a twist on this and the other side are things that we see is also -- and this is the longer range, and you started and then I'm going back to your question around the chipset in the beginning and the longer range. There is a significant underlying change that we see in the technology of the 5G that moves into the openRAN type of architectures, which then change again the network architecture is probably the second half or the other part of the wave of 5G, where that's what we are mainly targeting chipsets for very, very high -- high capacities, and we are almost on a daily basis seeing news around openRAN, an adoption of openRAN, and increasing -- believing people in openRAN as the technology to drive 5G, where I think will play a significant role because it plays to our sweet spot of best of breed. OpenRAN is all about best of breed.\nIt's our sweet spot with the customers and it plays very nicely for us as we build both the technology and ride that wave.\nRan Vered -- Chief Financial Officer\nGeorge, let -- let me just complement what Ira says on the 5G design wins. I think one important note is that few of them are with the customers that we've never done business with, including the one -- the 10th one that Ira just mentioned that we announced that you got there this morning. So, this means we are penetrating to new customers because of our capabilities in regards to 5G.\nGeorge Iwanyc -- Oppenheimer & Co. Inc. -- Analyst\nSo, just following up on that, and then I'll end the questions. When you penetrate a new customer is there much gross margin variability with, you know, ramping up initially versus when they're an existing mature customer?\nIra Palti -- President and Chief Executive Officer\nNo, not really. Usually, yes, there's a little bit upfront costs of coming in and investing upfront and it's sometimes the -- having people and things but it's not significant on the overall of the business.\nGeorge Iwanyc -- Oppenheimer & Co. Inc. -- Analyst\n", "All right. Well, thank you very much.\nIra Palti -- President and Chief Executive Officer\nThank you, George.\nOperator\nWe have a follow-up question from the line of Alex Henderson. Go ahead, please.\nAlex Henderson -- Needham & Co. -- Analyst\nGreat. Thank you. So, it -- it seems pretty clear that when I look at the numbers that, you know, you're -- you're not going to be looking at meaningful amount of profitability in '21, but it also seems pretty clear that the trajectory of revenues is very heavily back-half weighted. So, is it reasonable to think that we're likely to, you know, see losses in the first half of the year and then turn to profitability in the back half of the year as you just start to see some ramp to these contracts and you get some of the taking costs behind you? Is that kind of the way we should be thinking about the, you know, the way the year is going to unfold?\nIra Palti -- President and Chief Executive Officer\nI think, what you are putting on the table is reasonable, although from a manager's perspective, driving everyone crazy here to stay profitable and return to profitability. But, I think that your assumption that the first half is a little bit weaker on profitability and might be also in the loss and then in the second half is positive is a reasonable assumption.\nAlex Henderson -- Needham & Co. -- Analyst\nThe first quarter tends to be seasonally the weakest by -- by a long shot. I assume that you're not thinking that you can get back to the March '19, you know, quarterly run rate of $69 million in the first quarter. So, my assumption is as you're so -- that -- that's the weakest quarter of the year. Is that -- is that -- is that the right [Inaudible]?\nIra Palti -- President and Chief Executive Officer\nIt usually is -- it usually is the w" ]

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[ "roservices Cloud architecture, six generation data science expertise, a unified AI engine across the land, wireless LAN SD-WAN and AI-driven support, led by the industry's only conversational systems market.\nThis differentiation has enabled us to take share in key networking segments, which we believe will continue as the $20 billion campus in branch market transitions to AI-driven Cloud architectures in the years to come. We're also continuing to see success with our 400-gig offerings, both in wide area as well as data center use cases. We now maintain more than 200 wins that span across hyperscale Service Provider and Cloud major accounts, which is up materially on a quarter-over-quarter basis. We remain optimistic regarding our ability to not only protect our footprint, but also to capture new opportunities in these larger accounts. We continue to expect 400-gig deployments to begin later this year and present increasing tailwinds over the next few years. In addition, we're optimistic about our 5G metro opportunity. We believe the investments we're making in our Juniper Paragon automation suite as well as our ACF metro access and aggregation portfolio will position us to capitalize on this sizable and growing market.\nWhile it remains early, we're seeing healthy customer interest in our new metro portfolio, and we expect to continue to introduce new solutions over the next 18 months that should further enhance our ability to succeed in this market. Now I'd like to provide some additional insights into the quarter and address some of the key developments we're seeing from a customer solutions perspective. Starting with our automated WAN solution, while revenues slightly declined year-over-year due to the timing of shipments in the Cloud, we experienced strong orders with solid momentum in both our Service Provider and Cloud segment. We saw healthy demand across both our MX and PTX product families and improved adoption of our newer products as well as our automation software portfolio. Our 400-gig solutions are performing well and enabling us to not only protect our existing footprint, but also to secure several net new wins. While we are continuing to see strong customer demand for our automated WAN solutions, these products are currently the most impacted by supply chain challenges and therefore, the most difficult for us to predict.\n", "As a result, despite very strong orders, we now expect our results from this segment to return to within the range of our long-term model, calling for a minus 1% decline to a 3% growth during the year, with supply likely to be the biggest determinant of where we will ultimately fall within this range. Our Cloud-ready data center solutions experienced 28% year-over-year growth during the June quarter, an encouraging order trend from our Cloud, Enterprise and Service Provider customers. We saw strong momentum with new logos as well as an increase in average deal size in the period, including a meaningful increase in deals over $1 million. After exceeded expectations for a second consecutive quarter and it's creating a significant buzz in the market, this is leading to more software opportunities and full stack data center wins. Customer interest in our Cloud-ready data center portfolio is high, and we remain optimistic regarding the outlook of this business. For the year, we believe our Cloud-ready data center business is now tracking at the slightly above the high end of our long-term model, looking for 5% to 9% growth year-over-year. Finally, our AI-driven Enterprise solutions also grew 28% year-over-year.\nOur Mist AI differentiation continues to resonate in the market as new logos increased 130% year-over-year and Mist orders experienced another quarter of solid triple-digit growth. Our Mistified revenue from wireless LAN, wired assurance, Marvis Virtual Network Assistant and associated EX pull-through nearly doubled year-over-year, and we saw another quarter of record ES pull-through. I believe the missed pull-through opportunity will continue to grow, thanks to the recent introduction " ]

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[ "Investigators who completed their search of the California property belonging to kidnapping suspects Phillip and Nancy Garrido said initial findings do not connect the couple to the disappearances of two young girls. Ilene Misheloff, left, has been missing since 1989; Michaela Garecht disappeared in 1988. But police said that they have not eliminated Phillip Garrido as a suspect in the decades-old cases. Bone fragments found on the couple's property near Antioch could be human but are \"far too old to be relevant in our cases,\" said Lt. Chris Orrey of the Hayward police department. Teeth found on an adjacent property are most likely from an animal, she said. And some anomalies found by ground-penetrating radar uncovered \"chunks of concrete, tree roots, and in one case a floor mat,\" Orrey said at a news conference. Investigators had already found bone fragments at the property in unincorporated Contra Costa County, but have not said if they are human. \"Although nothing [was found] that would definitively link Phillip and Nancy Garrido to the disappearance of Ilene Misheloff or Michaela Garecht, we're going to continue to follow up on the evidence that we have recovered,\" Lt. Kurt von Savoye of the Dublin Police Department said at the news conference. \"We're going to examine and process all items that have been taken from this property to see if there is any possible link to the Garridos.\" The processing of all the evidence could take several weeks, Orrey said. Police from Hayward and Dublin began executing search warrants simultaneously last week on the Garrido property and an adjacent property to which he had access. They sought any evidence in the 1988 abduction of 9-year-old Michaela Garecht of Hayward and the 1989 disappearance of 13-year-old Ilene Misheloff of Dublin. The search of the adjacent property was also completed and the resident will be able to return soon, police said. The Garridos' home will remain boarded up and the fence locked, Orrey said. The Garridos face a combined 29 felony counts in the 1991 kidnapping of Jaycee Dugard, then 11, from South Lake Tahoe, California. Authorities say the couple held Dugard in a hidden compound behind their home for 18 years and have said Phillip Garrido, a registered sex offender, fathered her two children. ", "Phillip Garrido won't be eliminated as a suspect because of similarities in the Dugard case and the other disappearance cases, Orrey said. \"I can't help but feel relief that they didn't find anything here,\" Michaela's mother, Sharon Murch, told reporters. \"If they had found something on this property, it most likely would have meant Michaela wasn't alive.\"" ]

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

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

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[ "y over many years to design in our products into next-generation systems and networks, be they 5G or otherwise. And I think we start to see kind of some early progress with that here in the first quarter. And to the extent that operators are expanding their investment, we would hope to benefit from that.\nIt may not always be in a perfect quarter-to-quarter correlation. We don't have a position with absolutely every operator with the exact same degree of success. But we have a very strong position on the equipment, that is really going to enable 5G for the long term. And so to the extent that 5G creates incremental capital spending, which, again, has yet to be perfectly articulated, then, for sure, we would feel like we would be in a good position to be able to benefit from that in the medium and long term.\nOperator\nThank you. Our next question is from Luke Junk from Baird.\nLuke Junk -- Baird -- Analyst\nHi, good afternoon. Adam, you mentioned hybrids and electric vehicles especially as a growth driver in your end market discussion of both auto and industrial trends this afternoon. Could you help us better understand the span of EV-related products, especially across those two segments? And in particular, I'm wondering how might differentiate the company's opportunity set versus some of your connector peers that have a more auto-based focus.\nR. Adam Norwitt -- President and Chief Executive Officer\nThanks very much, Luke. Yes. No, you picked up on that very astutely. We participate in the electrification of vehicles, whether those are passenger vehicles or commercial vehicles, and both have been really great drivers for us in recent quarters and years. And in the industrial, we talk about that industrial battery and the heavy vehicles. There's a wide range of vehicles that are undergoing electrification right now from big trucks, and there's plenty of news media around that, to postal vehicles and trash trucks and buses and goods vehicles, delivery vans, you name it.\n", "And so all of that is what we classify really in our industrial business or industrial market as that battery heavy vehicle. And then when we talk about automotive, the hybrid EV, that's really passenger cars and the related products. In addition, we think about the charging infrastructure for electrification as really an infrastructure piece and that we think about in our industrial business as well. And that's all -- those are all components of areas where we've seen strong performance in -- certainly in the first quarter and over a number of years and look forward to that.\nBecause I think if you confine your view of electrification just to passenger vehicles, you're missing a really exciting area of the electronics revolution, which is that electrification more broadly. By the way, I mean, we're working as well with the Department of Defense in certain countries on the electrification of military vehicles, which, I think, is going to be a long process. But over the long term, we see that as an area that can also be another benefit and another growth lever along this just real kind of, call it, a megatrend, if you will, of electrification across kind of all things that move.\nOperator\nThank you. Now our next question is from Steven Fox from Fox Advisors.\nSteven Fox -- Fox Advisors -- Analyst\nHi. Good afternoon. Craig, I just wanted to talk a little bit more about your extra costs in the coming quarter. If I applied your analysis for Q1 to Q2, it looks like the pressure is about $20 million or so, similar to Q1. I imagine there's some M&A impacting your incrementals. But can you talk about whether that's in the ballpark and what you guys are doing to sort of reduce that $20 million nut going forward?\nCraig A. Lampo -- Senior Vice President and Chief Financial Officer\nYes. Thanks, Steve. Yes. No, actually, your math probably isn't so far off. It's certainly in the range of what we'd probably quantify that as. And if you look sequentially going from Q1 to Q2, essentially, a lot of that growth is our acquisitions that we just announced. So as you can imagine, the " ]

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[ "stomers in the pipeline that start to ship and -- but things that we see in the position that we have this in smart TV, PC, earbuds this will be volume-driven.\nAlso in the 5G RAN, last year, when it comes to China was kind of a pause in terms of capital expenditure, but it looks like and we get to data point VP, a much larger win rate in China Mobile, China Unicom so and the XC16 which is the next -- the new chip that they roll out for field testing, so that gives us some indication for renewal expenditure in China more into not just the urban one, but rural and also in the industrial robotic they want to install, they want to rely on 5G. We have another customer that's showing production ramps and that's the 5G. In mobile, we believe 2022 will be the bottom when it comes to this large OEM that moves to 5G, which is not this technology and other and we have other -- we have other customers in this area. I think the other customers that we have in the handset, in the baseband side will benefit from the move of 5G from high tier to the low tier where this is the sweet spot.\nAnd we have -- we signed up and that's something that we want to emphasize while we are here that CEVA play in 5G handset is not just in the basement process. So we have customers that license our connectivity, WiFi, and Bluetooth. So they're going to use our connectivity IP for handset. So one is already shipping, the other one is in design.\nSo that will be another angle that we see materialize in the year or early next year. And so that's when it comes to the royalty. So base station IoT growing, cellular, a bit mixed bag, but still we believe when it comes to the key customers, it's below, but the other customers likely to ship more than 2021.\nEthan Potasnick -- Cowen and Company -- Analyst\nOK. Great. Very helpful. And then as a follow-up, while not generating a ton of royalty revenue currently, we've kind of seen some great progress for the burgeoning opportunities in auto.\nAnd now with this sizable AI ADAS-based agreement you guys called out in the prepared remarks, I was wondering if you guys could expand a little bit more on auto, given some of the more accelerating trends we're seeing out there today?\nGideon Wertheizer -- Chief Executive Officer", "\nYeah, you mentioned those. Beyond the 5G and Wi-Fi which is extremely big and vibrant, ADAS is a growing market. We see very interesting OEMs and Tier 1 talking to us about chips that they want to make, talking about our AI in particular the new generation. So -- but this is, as you know, automotive, it's a longer cycle and a lot of things will happen and we need to build the first the license before start talking about royalties, royalties is more '25, 2025, 2026.\nEthan Potasnick -- Cowen and Company -- Analyst\nOK. Great. Thank you.\nGideon Wertheizer -- Chief Executive Officer\nThank you.\nOperator\nAnd our next question today comes from Martin Yang at Oppenheimer. Please go ahead.\nMartin Yang -- Oppenheimer and Company -- Analyst\nHi. Thank you for taking my question. My first question is on your 2022 outlook. So embedded in the guidance is roughly mid-teens growth, do you expect Intrinsix -- how do you expect Intrinsix to grow comparing to the other parts of the business?\nYaniv Arieli -- Chief Financial Officer\nYeah. We opened up Intrinsix for this year because it was new and it was only for seven months and trying to get it to quantify that add-on because it was something unique that we took and expect on. Going forward, as we explained here multiple times, I think in the prepared remarks and even the achievement so far with this ISP integrated service -- IPS yes, sorry, solutions is that we see Intrinsix today is part of CEVA. We see the IP offerings to semis and to OEMs today is a much more richer content and it's not just the pure IP, most of the public companies that deal with IP today do this and offer other services and other design wins and more help to the customer for revenues.\nObviously, these are larger deals and bigger opportunities and potentially with new customers that don't have the bandw" ]

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[ " -- Analyst\nOK. Great. And then my second question, I think the big fund, the National IC Industry Investment Fund is about to kick off its big second phase of capital investment. It -- to the local chip guys in China. Is that supportive of your solid outlook for this year or could there actually be upside to your estimates as that begins to flow in the marketplace?\nDavid Wang -- Chief Executive Officer\nYes. Actually, as mentioned, I feel [Inaudible] is really boosting for their -- actually, their fiber building and fiber expansion plan. As we mentioned a couple times, China customer and they're really under multi-year expansion plan, either you called it YMTC or Huali Huahong Group and all the SMIC and other -- also other new DRAM customers too. So they have a multiyear expansion plan, and obviously this is the new founding injection into their -- our customer side and what -- that may be improving our visibility and give us more of an opportunity.\nBeyond that, it's also [Inaudible], I should say, power device fab is also gaining the support in some -- those funds. So we see that expansion of new fab will give us a new opportunity too.\nOperator\nThank you. Next question comes from the Patrick Ho with Stifel. Please go ahead.\nPatrick Ho -- Stifel Financial Corp. -- Analyst\nThank you very much, and congratulations, and glad to hear everyone well. Maybe first off in terms of the supply chain. You mentioned on the prepared remarks that it's fine and everything is going well. Can you discuss any potential disruptions that you did have over the last few months, and whether that's part of the reason why you're pushing out some of the system deliveries into the second and third quarters.\nAnd what gives you confidence that it's now resolved where you don't have to use, I guess, second or third source suppliers?\nDavid Wang -- Chief Executive Officer\nOK. Great. Actually, just for the supply chain EBITDA line first, at this moment, I should say probably our major supply and probably 70% come from outside China. In that pouring, I call the import from China in which probably most of them from Japan and some are also from Korea.\n", "And we do have about less than probably 10% from U.S. and 10% from Europe. That's our supply chain distribution. In the last two months, three months, we didn't see any supply chain delay, right? Until that time obviously China got to suffer.\nWe do have seen some of our machine shop and gather people not on time return to the job. But at this moment, all our supply in China for machine shop have been on the line already. So as I see that is our major tool pushing from the Q1 to Q2 is obviously you see that is -- in the Wuhan, our customer YMTC, they do have manpower or they subcontract. They cannot go through the Wuhan restrictions, so that's why some tool we suppose ship to the YMTC in the Q1 was pushed to the Q2.\nThat's the major reason, right? So, obviously, we will watch carefully for our supply chain now since the coronavirus has kind of spread out and -- however, we're lucky to see Japan and Korea that is stable and hopefully in a few months, we are going to see U.S. and Europe get stable. So we are, so far, cautious watching. We feel probably OK for a real long -- I call it, for imported components at this moment.\nPatrick Ho -- Stifel Financial Corp. -- Analyst\nGreat. That's helpful. And maybe a question for you, Mark, in terms of capex for this year, especially as you get the third facility signed on and begin the process there, can give a little bit of color on how much you think potentially you're going to invest in capex for 2020?\nMark McKechnie -- Chief Financial Officer\nYes. Hey, Patrick, thanks for the question. So the capex for 2020 is just normal run rate operations, $2 million to $5 million is what we're looking at, adding a second floor to production at our second factory and some other upgrades. So that's kind of our normal run rate.\nWe did talk about the land for our new production in R&D site out there in Lingang. So if we reach agreement on that, we could see putting some money down for t" ]

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

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

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[ "roach to take an IP offering. We focus on high-speed memory interface, GDDR and GDDM. And then we focus on high-speed series or high-speed serial interfaces, PCIE and CXL.\nAnd on the security side, we focus on wood of trust. So this is a very, very focused strategy. And we're having traction with all of them. I would say that the emergence of new connectivity requirements in the data center is driving growth for our CXL and PCIE offering in the silicon IP business.\nSo people are buying from us either size of controllers that go into chips that feature CXL or PCIe interfaces. And the acquisition of AnalogX and PLA last year, are contributing quite a lot to that growth in demand. So there's -- we see a lot of growth there. we see a lot of growth in GDDR, high-speed interfaces.\nAnd on the security side, we continue to see growth in our traditional markets. But as I said earlier, there are emerging markets that are really interested in security, automotive, and government in particular. So it's really across the board, I would say that the vast majority of our growth in 2022 is driven by PCI and CXL designs.\nMehdi Hosseini -- Susquehanna International Group -- Analyst\nIf I may just follow up to that. I'm under impression that the [Inaudible] CXL is not the next year CXL 2.0. So when you talk about opportunities in '22 related to PCIe 4.0 or CXL, are these more R&D related? And then on 2.0 comes out, CXL 2.0, then those R&D projects will scale into production? Is that the right way of thinking about it?\nLuc Seraphin -- Chief Executive Officer\nYes. The one way to think about it is this. As Rambus, we have our own CXL product initiative. We are in full speed development of our CXL chips, and they will hit the market in something next year and begin production in 2024, but we are also selling building blocks, silicon IP to people who build their own chips that feature CXL or PCIe.\n", "And that's a silicon IP sales. So we do sell the IP today. It's an IP sale, a license that we sell today that creates revenue and revenue growth as an IP sales today for our customer products that we hit the market in '22, '23, and 2024. So this kind of phasing approach to CXL.\nWe can sell the silicon IP today to people who develop CXL and PCIe-capable chips, but we're also developing our own chips that will hit the market in the same timeframe.\nMehdi Hosseini -- Susquehanna International Group -- Analyst\nGreat. Thank you.\nLuc Seraphin -- Chief Executive Officer\nThank you, Mehdi.\nOperator\nAt this time, there are no further questions. This concludes the question-and-answer session. I would now like to turn the conference back to Luc Seraphin.\nLuc Seraphin -- Chief Executive Officer\nThank you, everyone, who has joined us today for your continued interest and time in Rambus. We look forward to speaking with you again soon, and have a great day.\nOperator\n[Operator signoff]\nDuration: 39 minutes\nCall participants:\nDesmond Lynch -- Vice President of Finance and Investor Relations\nLuc Seraphin -- Chief Executive Officer\nKeith Jones -- Interim Chief Financial Officer\nSidney Ho -- Deutsche Bank -- Analyst\nGary Mobley -- Well Fargo Securities -- Analyst\nKevin Cassidy -- Rosenblatt Securities -- Analyst\nMehdi Hosseini -- Susquehanna International Group -- Analyst\nMore RMBS analysis\nAll earnings call transcripts" ]

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[ "eas to name a few include smart energy, tracking, metering, industrial handhelds, retail, automation, and autonomous drones.\nAs connected IoT edge devices get scale and provide access to the data and contextual information that is fueling the exponential growth projections of cloud ecosystems, we're increasingly confident in the long-term growth opportunity for our IoT business. Turning to our licensing business. Our second-quarter results reflect the strength of our unmatched patent portfolio value. We are the global 5G IP leader with more than 130 5G license agreements signed to date, up from over 120 last quarter with all major handset manufacturers around the globe licensed.\nWe continue to develop and patent new essential innovations for future releases of 5G, which we expect to have a longer life cycle than prior generations due to its impact on multiple industries. We believe that our model of early research and development, consistent standards leadership, flexible licensing, and global implementation support will continue to add value to our partners and stockholders for years to come. Overall, we continue to see unprecedented demand across all of our technologies and businesses as the current environment is accelerating the scale of connectivity and processing at the edge. Despite the industrywide semiconductor supply shortage, we're utilizing our scale and working across our entire global supply chain to maximize our ability to capture this opportunity.\nWe expect material improvements by the end of the calendar year due to planned capacity builds and multi-sourcing initiatives. As one of the leading drivers of advanced semiconductor technology platforms, we're also excited to see more foundry investment in the United States consistent with the United States government's strategic priorities. Finally, we're extremely proud of our collaboration with NASA's Jet Propulsion Laboratory on Ingenuity, the Mars helicopter powered by Snapdragon. Snapdragon made it to Mars and helped power the first-ever autonomous flight on another planet.\nThis is yet another example of our ingenuity. I would now like to turn the call over to Akash.\nAkash Palkhiwala -- Chief Financial Officer\n", "Thank you, Cristiano, and good afternoon, everyone. We are pleased to report strong second-quarter results with non-GAAP revenues of $7.9 billion and non-GAAP EPS of $1.90, which was $0.15 above the high end of our guidance range. These results reflect year-over-year increases of 52% and 116% in revenue and EPS, respectively, driven by strength across QTL and QCT. In QTL, we recorded revenues of $1.6 billion and EBT margins of 74%, both above the high end of our guidance range.\nThe outperformance was primarily driven by stronger handset shipments, especially in China. In addition, our results include a benefit of approximately $80 million from adjustments to prior-quarter royalty estimates. In QCT, we delivered revenues of $6.3 billion and EBT of $1.6 billion. On a year-over-year basis, revenues were up 53% while EBT grew 137%, delivering on our commitment to increase operating leverage.\nWe achieved the high end of our guidance range with EBT margins of 25%. This reflects our strong operating performance driven by favorable product mix and gross margins, which more than offset a reduction in the orders within the quarter by a global handset OEM. RF front-end revenues increased 39% year over year to approximately $900 million on the strength of our product portfolio across 4G, 5G sub-6, and 5G millimeter wave. 5G millimeter wave products accounted for less than 20% of our second-quarter RF front-end revenues.\nWe expect millimeter wave deployments in other regions, such as China, to be a tailwind for long-term revenue growth. Automotive revenues of $240 million grew 40%, and IoT revenues of $1.1 billion grew 71% on a year-over-year basis as we continue to see strong momentum for our differentiated product portfolio. During the quarter, we completed the acquisition of NUVIA for a purchase price of $1.4 billion before working capital and other adjustmen" ]

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[ "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." ]

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[ "or us. We still have over 60% market share in Android. And the overall market -- mobile computing market is now more than 50% made up of Android devices. We still think that there's lots of potential in this market. We anticipate or we forecast that there is still about approximately 10 million legacy Windows devices in the market. And these devices are not all going to be converted to Android by 2020, when Microsoft stops supporting their older mobile operating systems. So this conversion cycle will take longer. We see good drivers. Our software continues to be a great driver and new devices -- we released some new devices specifically to capitalize on the warehouse transition, that's ramping up now, so our MC33 and MC93 products. So Android is clearly a great driver, but there's only one of several long-term drivers for our mobile computing business.\nPaul Coster -- JP Morgan Securities -- Analyst\nQuick follow-up. You're obviously investing a lot in software. You're acquiring your way into software data services, cloud applications, APIs and some. How is this expressed in your business model, because I know some folks looking in vain for the software line and it's not there. So just translate into margin improvement on the hardware side?\nAnders Gustafsson -- Chief Executive Officer\nWell, first I'll give you a couple of thoughts around our software business and the strategy for it. We've gone from having kind of made historically, say downward devices to smarter devices and now more smart infrastructure. So very much focused on driving a performance edge for our customers and it's entire portfolio and software has become a great differentiator for us. Our Software DNA layer makes it lot easier for our customers to integrate, manage and their suites of Zebra products. So the -- specifically we launched the Savanna Data Services, that's a great new capability for us that enables Zebra and our partners and our customers to more easily access data as well as enable Zebra to monetize that data. It also then helps demonstrate thought leadership for us and moves us up the stack as a solutions provider and it will help pull through our broader solutions as well. Software is still a modest part of our overall business, but software as a differentiator is something that's embedded into all our devices also, but we do expect it to continue to be a bigger and bigger part of our business.\nOlivier Leonetti -- Chief Financial Officer\n", "And to complement Paul on the business model impact. Clearly, the strong gross margin performance of the company, which we have posted now for several quarters is also due to the strength of the software offering and you don't see that necessarily in the software line in the P&L, but it's reflected also in the strong gross margin we have hardware, as Anders said. And these software offering allows us to sell based upon return on investment basis rather than just speed and feeds. And we are as a result, perceived as a thought leader in the industry and that is reflected in the way we price.\nPaul Coster -- JP Morgan Securities -- Analyst\nThank you.\nOperator\nThe next question today comes from Brian Drab with William Blair. Please go ahead.\nBrian Drab -- William Blair & Company -- Analyst\nHi, good morning. I was wondering if we could just maybe drill into Slide 6 a little further and just curious on the 3% growth in AIT. Can you talk about may be just specifically within that segment, first, in terms of end markets, retail manufacturing, P&L, which were above or below 3%? And then it would be great too, if you could mention in terms of geographies for AIT, which were above or below 3%? Thanks.\nAnders Gustafsson -- Chief Executive Officer\nYeah. I will start here. So first, AIT grew in Q2. We did see fewer large deals in Q2 2019 versus last year. So we were not able to replicate all of the large deals that we saw last year, and they were mostly in retail but also some other ones. In the -- within our printing portfolio, I'd call out RFID printers as a particularly strong growing segment of our portfolio. But ove" ]

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[ "nvesting.  We launched two low-carbon transition readiness ETFs last week, raising a total of nearly $2 billion, representing the largest ETF launch in U.S. history. Traditionally, climate products have been backward-looking, really focused on reported greenhouse gas emissions.\nUsing advanced data and analytics and research driven by insights, BlackRock developed a forward-looking active climate investment strategy in a transparent active ETF vehicle.  These active ETFs are the first of their kind and a great example of how BlackRock is innovating to expand access to sustainable strategies for more investors worldwide.  In total, BlackRock manages $353 billion in sustainable investments, including cash, and we believe this category will grow to more than $1 trillion by 2030. Sustainable investing presents opportunities for BlackRock, not only in terms of AUM growth, but in the demand for industry-leading technology and data. As sustainability becomes a critical building block in portfolios, investors need a clear understanding of how sustainable-related risk and opportunities impact their portfolio.  One of the newest opportunities for BlackRock is powering portfolios to a new sustainable standard with Aladdin because climate risk is investment risk. Our ambition to make Aladdin climb as the standard for assessing this risk with investors' portfolio and helping clients navigate and capture investment opportunity presented by the transition to a net zero economy.  Investments we have made in Aladdin over the years is to serve more clients with better risk analytics, end-to-end operating systems, and the benefit of scale drove a 12% year-over-year growth in technology services revenues.  We consistently hear from clients that poor quality or availability of ESG data and analytics is the biggest barrier to deeper and broader implementation of sustainable investing.\nThat is why we're evolving Aladdin's sustainability to help clients better assess their exposures and their positions across all our portfolios.  Our minority investment in Clarity AI will integrate analytics and data covering 30,000 companies and nearly 200 companies within Aladdin. And our partnership with RepRisk will give clients the ability to identify ESG risk exposures in private investments and create a holistic view of risk across their portfolios.  Advancing toward a net zero economy by 2050 will require more than better data and analytics. It will require transformational innovation in carbon reduction and elimination -- eliminating technologies. BlackRock has partnered with Temasek to establish decarbonization partners to invest in innovative decarbonization solutions to help accelerate global efforts.\n", "This initiative will provide clients with an opportunity to participate in a net zero transition by complementing BlackRock's existing renewable power and energy infrastructure investment platform.  In line with our strategic focus on technology and sustainability, we nominated Hans Vestberg, chairman and CEO of Verizon, to our board of directors for his deep experience in international markets, technology and sustainability.  At the same time, I want to thank Mathis Cabiallavetta for his passion and his dedication to BlackRock and its shareholders over the last 13 years. He will not stand for reelection at BlackRock's annual meeting next month, and he will be missed by our entire board and by me and the entire leadership team at BlackRock.  Our results and the speed of our forward momentum underscores the importance of BlackRock's fiduciary approach and culture. I truly believe our culture is what sets BlackRock apart. It drives our performance.\nIt pushes us to innovate. It pushes us to stay ahead of our clients' needs. And it guides our decisions, and it guides our behaviors.  Critical to our culture is building an environment of inclusivity, belonging, trust and creating a safe environment. More than ever before, BlackRock's leadership team and I are focused on instilling this culture with all of our 16,700 employees around the world and evolving it " ]

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[ "tion project will use various technologies, including 4x4 MIMO, LAA, 256-QAM and LTE M to bring LTE advanced features to our customers. These features improve coverage, throughput and capacity of the network. The modernization will support and utilize our existing low-band and mid-band AWS PCS spectrum holdings. The equipment being deployed is an enabler for supporting future 5G bands too.\nAs a reminder, we will start the deployment in our largest markets and look to commercially launch these services and 5G in those markets in 2020. Like with other technology evolutions, we are pacing these investments so we are ready when our customers are ready. This multi-year approach has served us well with previous generation technology deployments such as VoLTE, 4G and 3G. The work involved includes replacing the base stations with software upgradable base bands; new 5G features can be incorporated with simply a software upgrade rather than a hardware-upgrade. Moving the radios up to the top of the tower, this improves coverage, and software upgrades to the core of our network.\nWe are pleased with our progress to-date, our infrastructure vendors thus far are meeting our hardware delivery needs. We have started the tower work required to support the new antennas and coax lines at the cell sites, and we are making good progress upgrading the key components of the network core. By the way, you can't have a 5G offering without a device, and we are working very hard with our major handset partners to ensure we have 5G devices to go with our 5G commercial launches.\nNow, I will turn the call over to Steve Campbell. Steve?\nSteve Campbell -- Executive Vice President and Chief Financial Officer\nThank you, Mike and good morning everyone. I want to talk first about postpaid handset connections shown on Slide 8.\n", "Postpaid handset gross additions for the second quarter were 102,000, down from 111,000 a year ago. Ken talked about the factors influencing these results in his comments earlier. Postpaid handset net additions for the second quarter were negative 11,000; down from 5,000 last year, driven by the decline in gross additions and slightly higher churn. On a sequential basis, handset gross and net additions were both about the same. We continue to have existing handset customers upgrading from feature phones to smartphones. Including the upgrades total smartphone connections increased by 10,000 during the second quarter, and by 104,000 over the course of the past year; that helps to drive more service revenue given that ARPU for a smartphone is about $22 more than ARPU for a featured.\nNext, I want to comment on the postpaid churn rate shown on Slide 9. Postpaid handset churn depicted by the blue bars was 0.97% for the second quarter of 2018, with only small variations compared with the year earlier and sequential quarter results. In fact, handset churn has been right at/or below 1% for several consecutive quarters, which is indicative of high customer satisfaction. Total postpaid churn combining handsets and connected devices also has been consistently low over the period shown; it was 1.23% for the second quarter and has been trending down slightly for the past couple of quarters.\nNow let's turn to the financial results. Total operating revenues for the second quarter were $973 million, essentially flat year-over-year. Retail service revenues increased by 2% year-over-year to $662 million; the increase was due largely to higher average revenue per user which I'll cover in more detail on the next slide. Inbound roaming revenue was $44 million; that was an increase of 13% year-over-year driven by higher data volume. Equipment sales revenues decreased by $17 million or about 7% year-over-year; this was driven by a decrease in the number of devices sold. The impact of reduced volume was partly offset by an increase in the average revenue per device sold. We're continuing to see that customers are holding on to their devices for increasingly longer periods driving the number of device transactions lower. Just as we said last quarter, equipment" ]

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[ "ATLANTA, Georgia -- Going back to work after my wife had our first child was an emotional roller coaster. The author says that being \"Mr. Mom\" is appealing, but putting the idea into practice is harder than it looks. I forced myself out of bed, shaved my beard and got dressed on the morning of my return. I performed these work week rituals while cursing the fact that I matched only one number on my last lottery ticket, so I had to show up that day. After being out of the office for a little more than two weeks on paternity leave, I knew the transition back to work would be tough. I coped with this fact, like any rational new parent would, by increasing the number of lottery tickets that I purchased. Saying goodbye took a while. I made several trips up and down the stairs to get one more glimpse of my daughter before succumbing to the inevitable: my commute, fighting traffic and reintegrating to cubicle culture. I arrived at the office still thinking of my family at home without me. I found myself misty-eyed at the water cooler while I waited for Outlook to load several hundred unread e-mails. At that moment, I wanted nothing more than to be at home with my daughter. The idea of being a stay-at-home dad, like Michael Keaton in \"Mr. Mom,\" always appealed to me. For the uninitiated, the 1983 comedy is about an out-of-work father faced with domestic challenges while his wife gets a job. A memorable scene has the title character, Jack Butler, trying to sound like he knows what he's talking about to his wife's new boss. He tells him that he plans to wire a new wing of his house in \"220, 221, whatever it takes.\" I identify with the latter part of his character's claim. It's not like me to pretend to know anything about home improvement, but when it comes to caring for my family while balancing my responsibilities at work, I plan on doing whatever it takes. In 2007, 37 percent of working dads admitted that they would leave their jobs if their family could afford it, according to CareerBuilder.com. The \"if\" in that statistic is a big one. Unlike the characters in \"Mr. Mom,\" my wife and I both need to work. A good sequel to this film may have explored the hijinks that ensued from an overwhelmed parent caring for a newborn while working from home. ", "Nowadays, there's support for all of the Jack Butlers out there. Web sites such as AtHomeDad.org and Rebeldad.com have established online communities dedicated to providing tips and resources for fatherhood. These forums represent a growing fellowship where those with experience can help new dads. Personally, I haven't utilized them much yet because of that old Groucho Marx joke about not wanting to be a member of a club that would have a person like me as a member. Available resources and social acceptance for stay-at-home dads have come a long way since \"Mr. Mom's\" portrayal of them. In fact, Salary.com calculated that a stay-at-home dad was worth $125,340 a year for the dad portion of his work in 2006. This analysis took into account tasks that range from cooking and cleaning to teaching and serving as a child psychologist. Since I can't convince anyone to pay me my estimated worth as an at-home dad -- and living on one salary isn't an option for my family -- I've considered working from home a couple of hours a week when necessary. Flexible work schedules make sense because they benefit a company by allowing employees to be more productive on their terms. Nevertheless, working from home may not be for everyone. I work for a news Web site, facilitating advertisement opportunities. A lot of my job's communication occurs via e-mail, which is something I can do at home. I'd worked from home before, but not with a newborn in the house. My first test was only for a couple" ]

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[ "ew technology that we have in 5G are going to add substantial content to our opportunities, no question about that. So now we're talking about further out in BAW what else can we do, we've got aspirations to continue to do more, but the things that we're doing now today on leveraging BAW, leveraging Sky5 as a platform, leveraging the incremental content that 5G bands bring all going to be a great, great opportunity for us to step up. And one of the things that's helping us is the complexity. We keep saying this, but it's really important. The technology burden in a 5G device is substantially harder, more difficult to implement, more challenging for the customer and then bring that to market quickly. So there's a lot there. We are the experts in doing that. That's why we talk about decades of experience. We've been through these transitions. This is one of the harder ones and that's great for us and it's great for the top players in the market because we're going to be able to enjoy solving our customers' problems and putting them in a position to win. So we're excited about it. We're going to lever all of our technologies, our TC SAW capability, our packaging technology, our bulk acoustic wave, ceramic, but all of these technologies that we have will play a role. But the content opportunity is absolutely there. We've talked about that before in presentations prepared remarks that we see meaningful dollars of content opportunity and some of that will start in the second half of this year.\nCraig Ellis -- B. Riley FBR -- Analyst\nAnd with regards to that last point with content kicking in in the second half of the year beyond what we're seeing with momentum in the business here in the quarter that you are just guiding to which is above seasonal. So is it fair to think that with the content that you've got, you've got a year where integrated mobile can drive consistently above seasonal performance in the business or is it just too early to be able to have that kind of visibility from where you are?\nLiam K. Griffin -- President and Chief Executive Officer\n", "Yeah. Yeah, I mean it's difficult to figure out what the natural seasonality is going to be. But we definitely see improving opportunities for us, design wins that have been consummated that haven't yet shipped. And let's also look at where the customers are. One of the largest customers, great customer, hasn't put a 5G phone out yet. So that's another thing to think through. So I think there is plenty on the horizon. We're really excited about it. We just delivered a beat and raise Q1 and Q2. I think the broad markets business is going to accelerate. We talked a little bit about that with Kris. The 5G opportunities are right there in front of us. We're executing fully. We're adding capital and we're really enthused about the opportunities that are in front of us.\nOperator\nYour next question comes from the line of Chris Caso from Raymond James. Your line is open.\nChris Caso -- Raymond James -- Analyst\nYes, thank you. I guess first question is if you could characterize the strength that you're seeing and kind of where the strength is coming from that's driving the better seasonal Q1. I guess, I'm assuming that the new Chinese 5G phones are a large part of that, if you can clarify that. And then as we go through the year, what is going to be the pace of new introductions in your content gains from the Chinese phones? Is that going to be something that steady through the year, is it more kind of front-end loaded, maybe get some clarification on that.\nLiam K. Griffin -- President and Chief Executive Officer\nSure. Sure, Chris. Well, a couple of things. This is the first period that we're actually talking about 5G in devices and bring in revenue to the table. So early, early innings and we're already seeing some improvements in our numbers for Q1 and Q2. And that's the early part of 5G. And if I were to look at that, a lot of that is China, it's the Oppo, Vivo, Xiaomi names like that. But we're also seeing ramps coming in with Samsung. I think there's going to be some really nice r" ]

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[ " about 14%, consistent across both elements. This was in line with our plan and the mid-teens near-term growth expectation we set at the recent Investor Day.\nWhile this level of growth remains accretive to company growth, we continue to expect an acceleration of growth into the 20s as we get into the back half of the year. The biggest driver of growth in Q1 was from expansions, especially in Europe and APAC. We believe market conditions in IoT are improving, and we like the way the pipeline for our new DPM offering is developing through both PTC and Rockwell channels. For AR, we continue to see a tremendous level of interest, but the market remains nascent.\nPerhaps most importantly, the formation of the digital thread business unit at the start of FY '22 has driven important initiatives to increase our focus on cross-selling of IoT and AR into the core CAD and PLM customer base. FSG had a great Q1 with 6% ARR growth. The expansion deal we recently announced with the U.S. Air Force, both increases and extends this key relationship for up to five more years.\nContracts like this demonstrate the value that our customers are realizing from Servigistics and other FSG products such as retail PLM and ALM. You may remember, I noted at our Investor Day that having FSG grow in the mid-single digits rather than flat would be a helpful upside growth driver. So I'm pleased to see FSG post another strong quarter. Let me run through a couple of quick customer anecdotes to give you a sense for our digital thread customers and how they rely on us.\nOn Slide 7, MAN Energy Solutions is the world's top provider of large-bore engines in turbomachinery for the maritime and energy industries. The company manufactures complex parts in nearly every engine they make must meet unique customer requirements. Before implementing Creo, they relied on manual outdated processes that slowed design and production. With Creo, they've been able to transition from 2D to a full 3D model-based approach.\n", "Creo's broad range of tool path automation capabilities enable them to save time in the programming of the tool pass used to machine the large complex engine parts, greatly increasing efficiency in transitioning from design to production. Turning to Slide 8. You may have noticed we announced a deal with -- we announced that the German company, Scheffler, has expanded its relationship with PTC, and I'd like to share a bit of the back story. Scheffler has been a longtime Creo customer and has successfully deployed Windchill within engineering.\nBut back in 2017, one of our PLM competitors announced a large PLM deal with Scheffler that appeared to cap PTC's expansion opportunity. But that system didn't ultimately stick as Scheffler has now decided to consolidate on PTC systems with Windchill being the backbone and is broadly deploying our solutions in their standard out-of-the-box fashion so that Scheffler can participate in the full power of our digital thread portfolio. I'm very excited about this collaboration and the further expansion that Scheffler is exploring with our IoT and AR offerings. On Slide 9, you'll see how IMA Group, our global business that delivers packaging machines, services, and solutions to a wide variety of industries, was looking for a way to expand their control room offering to help their customers improve overall equipment effectiveness and reduce downtime.\nAs longtime users of PTC's Creo and Windchill, IMA decided that ThingWorx was the ideal IoT solution for their initiative and that Kepware could provide connectivity not only to their machines, but to the other vendors' machines deployed alongside them. IMA has successfully launched new revenue streams by enabling 24/7 monitoring of customer production lines and improved OEE by up to 16%. The Vuforia integrated with ThingWorx is the platform of choice for the U.S. Air Force training initiatives.\nSlide 10 highlights the work that PTC partner, Vectrona has done with the U.S. Air Force. With finite training resources and limited capacity, the U.S. Air Force set out to incorporate augmented" ]

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

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[ "Federal investigators trying to determine why a Delta Air Lines jet landed on a taxiway instead of the runway in Atlanta on Monday morning say the runway was illuminated, but that approach lights and a ground-based instrument that helps pilots line up with the runway were off. The pilots of the plane that landed at the Atlanta airport have been relieved from flying duties pending probes. The incident happened at Atlanta Hartsfield-Jackson International Airport, the world's busiest. But it occurred shortly before dawn, when airport operations are slow. Delta Flight 60, from Rio de Janeiro, Brazil, was cleared to land on a main runway around 6:05 a.m., but it landed instead on nearby Taxiway M, which runs parallel to the runway, said FAA spokeswoman Kathleen Bergen. The departure taxiway, which can be filled with aircraft during peak hours, was empty at the time, and the plane landed safely, officials said. No one was injured, and there was no damage to the taxiway. The Boeing 767 aircraft had 182 passengers and a crew of 11. The FAA, the National Transportation Safety Board and Delta Air Lines are investigating. The pilots of the aircraft were placed on nonflight status, Delta said. The NTSB on Wednesday confirmed that a \"check pilot\" on the flight was sick, and the crew had declared a medical emergency. It was not clear what, if any, role that played in the mishap. Sources familiar with the incident say that Flight 60 originally was scheduled to land on Runway 27L (left), the active runway at that time, but was \"sidestepped\" to Runway 27R (right). Pilots commonly ask to be \"sidestepped\" to Runway 27R -- and air traffic controllers commonly offer 27R -- because it is closer to the terminal and pilots can shave minutes from a trip. In this case, it is not clear whether the pilot made the request, or the air traffic controllers made the offer. Nor is it clear why the change was made -- whether to shave time from the flight, or because of the medical emergency on the aircraft or some other reason. But after being given permission to land on Runway 27R, the plane went too far to the right, landing on Taxiway M. The runway was marked with yellow lights, while the taxiway was marked with blue lights, one person familiar with the incident said. ", "The NTSB said the runway lights on 27R were illuminated, but a \"localizer\" and approach lights for the runway were off. Officials said the weather at the airport was clear, and the NTSB said the wind was calm at 10 mph. The sky was dark, with twilight still more than an hour away. The NTSB said a \"check airman\" was in the cockpit with the captain and first officer during the flight, but became ill and moved to the cabin for the remainder of the flight. Check airman are company pilots who watch over crew members during significant flights, such as when a first officer becomes a captain, when a pilot is making a maiden international flight, or over mountainous terrain for the first time. The NTSB said it is uncertain why the check airman was on the Delta flight. Delta spokesman Anthony Black said the airline is cooperating with the FAA and the NTSB and conducting its own investigation. The pilots of the flight have been relieved from active flying, he said. The incident came just two weeks after the FAA announced that serious runway incursions were down 50 percent this year. Close calls in 2007 at some of the busiest U.S. airports prompted the FAA to take action to reduce the risk of runway incursions and wrong runway departures. There were 24 serious runway incursions that year, eight of them involving commercial carriers." ]

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[ "s until more staff is able to return to work. That said, we expect SE revenues and bookings to start rebounding in fiscal Q4. We expect the SE demand to continue to improve throughout the calendar 2021, returning to and exceeding pre-COVID levels. Additionally, we expect 5G field instruments demand to start materializing in the second half of calendar 2021, as 5G service providers start ramping up their network build outs.\nLonger term, we expect several major industry and political trends to set up NSE for a multiyear super cycle. The carriers recently made sizable investments in spectrum and are now aggressively working on 5G wireless field deployment plans. The 5G market presents Viavi with new wireless and fiber growth opportunities. Our wireless products are already off to a strong start with solid bookings and business visibility. We are also seeing attractive growth opportunities in Europe as governments there push to help fund deployment of fiber to the home to replace their legacy copper networks. And lastly, the U.S. plans for multiyear investment in broadband outside major cities is expected to present Viavi with new markets and opportunities for fiber cable and wireless.\nNow turning on to OSP. The OSP business segment delivered record revenue and profitability for March quarter led by strong demand for both anti-counterfeiting and 3D sensing products. Anti-counterfeiting demand is being driven by a combination of global central bank, fiscal stimulus, inventory replenishment, and banknote redesigns.\nFiscal Q3 saw above seasonal demand by major customers, and we expect stronger than normalized demand for anti-counterfeiting products to persist in the foreseeable future. 3D sensing demand for mobile devices remain strong and is up double digit percentage from a year ago levels, reflecting the increased adoption and penetration. We expect 3D sensing revenue in fiscal year 2021 to be up 16% year-on-year. This is a slight decrease from our prior quarter expectations of being up 20% year-on-year, driven by industry semiconductor supply chain constraints.\n", "To summarize, calendar 2021 is off to a strong start with both NSE business segment experiencing rapid recovery and expecting year-on-year revenue growth throughout the rest of the calendar year. The OSP business segment is expecting to see continued robust demand for the anti-counterfeiting products driven by global fiscal stimulus programs and currency redesigns. And 3D sensing is expected to continue to see further adoption and penetration opportunities. Overall, we expect our principal growth drivers; 5G, fiber and 3D sensing to continue driving growth for Viavi in calendar 2021.\nIn conclusion, I would like to express my appreciation to the Viavi team for its continued strong execution in delivering another record quarter and wish all our employees and supply chain partners, customers and our shareholders to remain safe and healthy as we return to business normalcy.\nI will now turn the call over to Bill.\nBill Ong -- Investor Relations\nThank you, Oleg. This quarter, we will be participating at the Needham TMT Investor Conference on May 20, in the Stifel Cross Sector Investor Conference on June 8. Christina, let's begin the question-and-answer session. [Operator Instructions]\nQuestions and Answers:\nOperator\n[Operator Instructions]. And your first question comes from the line of Samik Chatterjee with JPMorgan.\nJoe Cardoso -- JPMorgan -- Analyst\nHi. This is Joe Cardoso on for Samik Chatterjee. My first question is actually around supply constraints that you mentioned for the 3D sensing business? And actually, I'm kind of surprised to hear just given the commentary that we've heard through earnings season thus far that you're not necessarily feeling any of those implications on the NSE business. I'm just curious, is that correct? And then what are you guys seeing in the NSE business in terms of supply constraints and whether you're factoring any into your forward guidance? And then I have a follow up. Thank you.\nOleg Khaykin -- President and Chief Executive Officer\nSu" ]

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[ "s more needle-moving or that will be contributing in your mind as we head into fiscal 2022? And then also how should we think collectively of what these might be able to add in terms of basis points to growth on top of that mid-single-digit normalized rate in 2022 just ballpark?\nTom Polen -- Chairman, Chief Executive Officer and President\nYes. So, we obviously view that as a form of -- we think about organic and inorganic innovation opportunities as both fueling that growth profile that we have and that we've defined. I think as we think about just the five that we've done this year, obviously, six last year, there are a number of them that are meaningful within the businesses that we have. We're really excited about the new catheter for example in BDI in their Peripheral Intervention business which is where that will show up. It's going to be a great product for them. It's really a breakthrough technology that's in a market that again is growing much faster than the company average.\nAs we think about the two acquisitions in MMS that get us into the non-acute medication management area. That's an area that's growing much faster than the acute care medication management. As we've made very clear in our strategy helping to enable the shift of care into the non-acute sector is important to us. And we want to have a continue our leadership in the acute but be the leader also in enabling the trend that's happening building up the capabilities in the non-acute sector.\nAnd so those two acquisitions I think we'll look back on as being very strategic in enabling that. And both of those markets are growing in the teens. So, again, very positive growth rate there. And there's a couple that we haven't disclosed yet and you can see on the slide 13 that we had shared products like an infection prevention product. We haven't launched a new infection prevention product for a while.\nObviously, our ChloraPrep franchise and a great commercial organization that drives that product globally. This will be a nice new addition to their bag and we'll talk about that forthcoming just like we did with Pristine. We had acquired that last year but we didn't announce it until now until we're actually launching it. So we'll do the same there.\n", "And the same factor with a new vascular access product that we're excited about that we just closed in the last month or so which we'll talk about very forthcoming as we bring that to market. So a number of different opportunities all very relevant in driving our business strategy. All of those acquisitions are participating in markets and we expect to grow faster than the BD average and again, it's part of our growth strategy.\nRichard Newitter -- SVB Leerink -- Analyst\nThat's helpful. And then just looking forward, do we think of now that you're obviously grooming the portfolio a little bit with the diabetes planned spin-off now, do we kind of think of you guys as potentially moving up the size of the kind of the M&A target pool that you'll be willing to do going forward into 2022 and beyond once the spin-off occurs?\nTom Polen -- Chairman, Chief Executive Officer and President\nYes. Richard, we're still very focused on tuck-in M&A. Obviously, for us as a company of our size, tuck-in M&A can be probably in a couple of billion-dollar range in terms of deal size, but we certainly are not looking to do anything on the transformational side of like a CareFusion or Bard-type size. And that's very consistent with the strategy that we've communicated. Could you see larger tuck-in M&A deals than what we've done to date? Yes, but they would still be tuck-in M&A.\nRichard Newitter -- SVB Leerink -- Analyst\nThank you very much.\nOperator\nYour next question comes from the line of Josh Jennings with Cowen.\nJosh Jennings -- Cowen -- Analyst\nHi. Good morning. Thanks for taking the questions. Just one question on Alaris and one follow-up. On Alaris, a lot of focus there some great updates by the Becton team today. I was just wondering if you could help us understand, how much of a drag the Alaris mediation has been on the core busi" ]

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[ "Rescuers are sifting through the rubble of the United Nations headquarters in Algiers hoping to find survivors after a powerful bomb ripped off the building's facade and leveled nearby U.N. offices. Rescuers and bomb experts search for survivors in the rubble of a destroyed building. It was one of two suspected car bombs that struck Algiers within 10 minutes of each other. The death toll is unclear: the official government count is at least 26, but hospital sources in Algiers told CNN affiliate BFM-TV that 76 people were killed in the two blasts. A statement from the United Nations said 45 people were reported killed. Algerian Interior Minister Noureddine Yazid Zerhouni blamed a militant Islamic group with ties to al Qaeda for the attacks, which also targeted a building housing Algeria's Constitutional Council and Supreme Court. In a posting on an Islamist Web site, the group al Qaeda Islamic Maghreb claimed responsibility. CNN could not immediately corroborate that claim, but the Web site is known to carry messages, claims and videos from al Qaeda and other militant groups. In the posting, the bombers were identified as Sheikh Ibrahim Abu Othman and Abdel Rahman Abu Abdel Nasser al-Asimi. It said two trucks were filled with \"no less than 800 kg (1,763 pounds) of explosives.\" The group called the operation \"another successful conquest and a second epic that the knights of faith have dictated with their blood, defending the wounded Islamic nation and in defiance to the Crusaders and their agents, the slaves of America and the sons of France.\" At least 10 U.N. staffers were among those killed, according to U.N. spokeswoman Marie Okabe. The offices of the UN High Commissioner for Refugees -- located across the street from the U.N. headquarters -- were leveled by a blast that struck about 9:30 a.m. (3:30 a.m. ET) Tuesday. \"Our offices are basically destroyed now, nothing works,\" UNHCR spokesman Ron Redmond said from its Geneva headquarters. Watch his full interview He said rescuers are working into the night trying to get to the trapped U.N. workers. \"It's a very serious situation still with the U.N. in Algiers,\" he said. In a strongly worded statement, U.N. Secretary-General Ban Ki-moon condemned what he called \"an abjectly cowardly strike against civilian officials serving humanity's highest ideals under the U.N. banner.\" ", "\"The perpetrators of these crimes will not escape the strongest possible condemnation -- and ultimate punishment -- by Algerian authorities and the international community,\" Ban said in the written statement. He said he has sent senior advisers and other top U.N. officials to head to Algiers to assist in the investigation and rescue effort. Most of those killed in the coordinated attacks were victims of the first suspected car bombing near the Constitutional Council -- which oversees elections -- and Supreme Court in the Algiers neighborhood of Ben Aknoun, according to the state-run Algeria Press Agency. That blast struck a bus outside the targeted building, killing many of those on board, the news agency reported. One man said he heard the first blast then the second exploded in front of him. \"I saw the trees falling and the glass shattering in front of me. I had to run away from the car,\" he said. Zerhouni said the attack was the work of the Salafist Group for Preaching and Combat (GSPC), the same group that took responsibility for an attack in April in downtown Algiers that killed 33 people. That group also uses the name al Qaeda Islamic Maghreb after merging with al Qaeda earlier this year. It abandoned small-scale attacks in favor of headline-grabbing blasts after it joined with al Qaeda. CNN International Security Correspondent Paula Newton said the merger combined the expertise of Algerian guerrillas with the operational ability of al Qaeda in North Africa, enabling the group to penetrate the usually extensive security in high-profile areas of Algiers. She said the group's goal is to destabilize countries like Algeria, Morocco and Tunisia, which it sees as enemies of the Islamic state. Zerhouni said police interrogations of GSPC members arrested in the" ]

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[ "ndexes. But what you will start to see is maybe some of the bigger ones, a BlackRock or Amundi or others, they might create an ETF. If we launch an oncology index, an oncology ETF or we launch an early stage biotech index, maybe an early stage biotech ETF and then mutual funds. So it will take time.\nAnd I even think that the revenue next year is going to probably be very small because, again, it's all in the launch phase. But at some point, this will gain momentum. And if you just look at the fact that today there's $400 billion invested in these thematic indexes, $100 billion in ETFs and $300 billion in mutual funds, and a lot of that is technology because there's really -- life sciences is behind. It hasn't really happened.\nSo could that $400 billion grow over the next 10 years to $1 trillion? I think it will, probably. And what share of that is going to be life sciences? And so then you have to go through the economics that MSCI will get and then what we will get. So I think this is something that looking in sort of the second half of this decade could become important. But maybe as time evolves and we get a better sense of how this could grow, we could be a little bit more specific.\nAt this stage, I am very excited because it not only shows then that what we can do with the Royalty Pharma models -- and things that were totally unexpected. I mean nobody thought of this, had it in their model. So it's potentially something new for us. And it also will benefit -- I mean, there was a question before about whether this will benefit our core business.\nAnd absolutely, it will. Why? Because in that effort of us really looking into life sciences and trying to look in on 3, 5 years as to what are you -- what's going to be the important therapeutic areas and we'll also start to look at the companies that are starting to invest in that, many of which may have things in preclinical. But if you start to look at those companies and track them through an index and you start to see how this value creation begins or how capital is shifting from -- into those areas, it will give us a feel for that. And just as an illustration.\n", "I mean things that -- a Chinese biotech, for example. We looked at it last fall as we were starting to talk to MSCI about this. And I was blown away to realize, we -- myself and the team have been going to China in the past years to try to explore if there's anything for us to do in that market. I was just blown away last fall when I checked the market cap of Chinese biotech, and it was about $700 billion and I think that it went to those guys, maybe $1 trillion.\nAnd there's about 800 Chinese biotech companies that are public, 800 biotech companies, which is a very significant number. So it gives you a sense of what's going on in other markets, and it will help us at Royalty Pharma to also make sure that we're really understanding the space in a very deep way and we can understand the trends better. So that's additional perspective that I wanted to provide.\nTerry Coyne -- Executive Vice President, Chief Financial Officer\nAnd then, Dave, on your question on the cystic fibrosis franchise, we've certainly heard comments for Vertex about future potential combinations and potential lower royalty rates on those combos, and our position's unchanged. So as it relates to any combination that includes deuterated Kalydeco, our position is that deuterated Kalydeco is simply Kalydeco and Kalydeco is a collaboration compound that's royalty-bearing. And with regard to any other components of combination products, I think there's a number of factors to consider. So which components are they? And are they royalty-bearing and at what level? And then as those combos move forward, it's time to enroll the clinical trials in a population that is, at this point, pretty well served.\nAnd then our success and timing of potential regulatory approvals and then ultimate uptake versus Trikafta, which is a pretty remarkable drug for CF patients. So our view is that we expect the CF to be a very important contributor to our business for many ye" ]

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[ "e space in, call it, the short to medium term. And then, perhaps longer out, green hydrogen. And we continue to stay close to that space. Right now, through our power contracting initiative as opposed to actually investing in green hydrogen production, but we'll continue to monitor that space such that when it does become commercially viable on a wide-scale basis, we can be a meaningful player in that sector.\nAnthony Crowdell -- Mizuho Securities -- Analyst\nGreat. And then, just lastly. And I apologize if I mischaracterize this. When you were talking about India, you spoke about the company is putting capital there, putting it to work, but you're not throwing like a deluge of capital.\nYou're being very, I guess, constrained with it, given it's a developing country. Do you view all the developing countries in one? Or you're willing to spread -- you're willing to have more leverage to developing countries as long as you're spread out? I don't know if I'm clear in the way I'm asking that question.\nConnor Teskey -- Chief Executive Officer\nNo, no, it's helpful. And it perhaps gives me an opportunity to clarify my earlier remarks. Today, our business and traditionally, our business has been, call it, 75%, 75% plus developed countries, and we very much expect that proportion to remain approximately consistent. So on a relative basis, the vast majority of our existing asset base and the vast majority of our growth capital, we expect to go into developed countries.\nNow that being said, given the size of our business, that does allow for very meaningful amounts of capital to be deployed into countries like India, and we will pursue those opportunities when we think we are getting attractive returns and strong downside protection. We would very willingly deploy meaningful dollars in India. But I think the comment we were trying to make before is we still see the vast majority of our business and the vast majority of our growth continuing to be in developed countries and developed regions.\nWyatt Hartley -- Chief Financial Officer\nAnd Anthony, maybe to add to that, as Connor mentioned, 25% or less of our business is in the emerging markets. It's historically been in that. And looking forward, it will stay that way. But one of the things we are incrementally doing with that piece of the pie is diversifying it.\n", "So when we were first formed as BEP, it was around 25% of our business was emerging markets, but it was entirely Brazil. Now we're across multiple countries that form emerging markets, and we think that the benefit of further diversification of that piece of the pie is really beneficial.\nAnthony Crowdell -- Mizuho Securities -- Analyst\nGreat. Thanks for taking my questions.\nOperator\nThank you. Your next question comes from the line of Naji Baydoun with iA Capital Markets.\nNaji Baydoun -- iA Capital Markets -- Analyst\nGood morning. I wanted to go back to the comments you made on offshore wind and that scenario of the market, similar to your comments on the next target markets for you for offshore wind. What are some of the opportunities that you're seeing in that technology?\nConnor Teskey -- Chief Executive Officer\nCertainly. So offshore wind, the most mature and the deepest market around the world is Europe. And that's, obviously, where we've focused for our first investment. Now that being said, we made a comment that we've been monitoring offshore wind for several years now.\nWe have been looking at opportunities all around the world: in Europe, in Asia Pac, more recently in the United States. I would say we use the same approach when assessing those opportunities that we do anywhere else. Can we get a contract profile that we like? Can we bring something to the transaction that allows us to be differentiated such that we don't need to compete on cost of capital? And if we find those situations in any of our core markets, we'd look to deploy capital into the offshore wind technology. So I would say we don't have a specific region in mind.\nI think some of the more recent announcements about decarbonization are going to drive tre" ]

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[ "?\nGiel Rutten -- President and Chief Executive Officer\nYeah, that's a good question. I mean, we see the transition from 4G to 5G continue for the next two to three years. This year's expected 500 million handsets being built with 5G capability, which is about 40% of the total handset market. We expect that to grow in 2022 to something like 65% to 70%, and then the year after it will gradually move to a higher percentage. The overall smartphone market, if you take the overall volume, it grows mid-single digits percentage this year and we expect, let's say, a moderate growth going forward. We saw some of the critical markets like, for example, the India market holding back a bit in the second quarter, but we expect that to recover going forward. So, that's what we see over the next two years, continued growth in 5G. We have a strong footprint there. And that is a strong growth driver for Amkor going forward.\nArthur Winston -- Pilot Advisors -- Analyst\nGood. In terms of capacity utilization, are we bumping up against utilization any place like Korea or someplace where we're fully utilized?\nGiel Rutten -- President and Chief Executive Officer\nWell, we installed significant incremental capacity actually in the second quarter to prepare for the third quarter ramp. Currently, our lines are highly utilized. We see still some utilization improvement possibilities in our Japan factory, for example. But, generally, in the third and fourth quarter, we are close to fully utilized, and we also expect this year to be close to fully yield utilized in the third and fourth quarter.\nArthur Winston -- Pilot Advisors -- Analyst\nWell, OK. Have you picked a location in the United States? And if so, what do you think the whole project will cost when you finished up with it?\nGiel Rutten -- President and Chief Executive Officer\n", "Well, we're watching closely the activities in the U.S., with establishing semiconductor manufacturing supply chain. Of course, we are encouraged to see the passage [Phonetic] share of the chips for American founding [Phonetic]. Amkor is uniquely positioned to be an OSAT in the U.S. We're a U.S.-based company. We are headquartered in Tempe, Arizona. Of course, with respect to the U.S. cost structure as compared to the Asian cost structure, we are really -- currently working with federal, state and local jurisdictions to really understand the incentives that could become available to build a competitive supply chain in the U.S. I mean currently we are actively exploring and evaluating potential sites for U.S. facility and to bring that up in line with other investments in the supply chain to be able to support our customers in the U.S.\nArthur Winston -- Pilot Advisors -- Analyst\nBut nothing has been signed so far? If you have [Speech Overlap] Yeah.\nGiel Rutten -- President and Chief Executive Officer\nNo, but we're zooming in to a few possible locations, and we expect to finalize this in the next phase.\nArthur Winston -- Pilot Advisors -- Analyst\nOkay. My last question is on a couple of older conference calls you alluded to going into sort of where high technology testing and emphasizing testing going forward, but you really not talking about very much. So, is that -- is testing growth in the course for the future?\nGiel Rutten -- President and Chief Executive Officer\nTest -- let me step back here to create a perspective. I think, turnkey services for Amkor is important, and turnkey basically includes bumping, probing, assembly and final test. So, testing is an integral part of our offering. And we're investing significantly to expand our test capability and capacity, very specifically in the 5G domain where 5G testing is a new technology area where we started to invest in about two years ago, and we now have significant volume capability in place in our Korea facility.\nArthur Winston -- Pilot Advisors -- Analyst\nOkay. Well, thanks, and thanks for the results as well.\nGiel Rutten -- President and Chief Executive Officer\nOkay. I appreciate that.\nOperator\nThank you. And at this time, I'm showing no further questions. I would li" ]

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

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[ "BEIJING, China (CNN) -- Had the government not delayed its controversial order that all computers be equipped with Green Dam by July 1, the result would have been the same -- Chinese computer retailers were far from ready. The Green Dam's developers say they've received death threats. PC sales representatives at Bainaohui, one of Beijing's largest electronics retailers, say their merchandise is not pre-installed with Green Dam, a Web filtering software the government said was necessary to prevent children from viewing pornography and other harmful content. Some retailers were unclear as to when the software would even be available on new units. Computer experts say manufacturers have not had enough time to pre-install new computers with the software -- which is one reason behind the government's delay. PC companies may also be taking more time to test the software after programming errors, with the potential to make computers susceptible to hackers, were detected by University of Michigan professors. The Chinese government said that these errors have been fixed. The international backlash against the Green Dam directive may be further delaying the pre-instillation process. Twenty-two chambers of commerce and trade groups made an appeal to Chinese Premier Wen Jiabao urging that he abandon the software mandate. \"China is putting companies in an untenable position by requiring them, with virtually no public notice, to pre-install software that appears to have broad-based censorship implications and network security issues,\" said U.S. Secretary of Commerce Gary Locke in a press-release. With the support of U.S. trade officials, computer-makers including Dell and Hewlett-Packard are threatening to bring the matter to the World Trade Organization. Other computer manufactures, including Sony and Acer, say they are bound to comply with the Chinese policy. Domestically, Chinese Internet users are rallying against the government. Last week an anonymous group of \"netizens\" posted an open letter on Chinese blogs and forums. \"We hereby decide that from July 1 2009, we will start a full-scale global attack on all censorship systems you control,\" the message said. The Chinese artist, activist, and architect who designed the Olympic \"Bird's Nest\" stadium, is one of the leaders behind the cyber battle. Ai Weiwei called for his Twitter followers to boycott the Internet on July 1st. The Green Dam's developers say they've even received death threats. ", "The Chinese online community has been in an uproar since the new policy became public, and a \"Declaration of Anonymous Internet Users 2009\" circulating directly addresses government censors, said Charles Mok, chairman of the Internet Society of Hong Kong. \"They are showing altered pictures of their own face using masks like that from 'V for Vendetta',\" said Mok, referring to the 2005 film updating the story of Guy Fawkes, who tried to destroy Parliament building in England in the 17th Century. \"It says, 'We're behind the mask; if one of us falls down, ten others will join.'\" Mok also questions the true intent of the Green Dam software. \"On its black list are 2000 words related to pornography and 6000 other types of politically sensitive key words like 'Falun Gong',\" he said, referring to the banned Chinese religious group. \"That ratio alone makes it obvious what's behind it.\" Sharp criticism of the software partially stems from fears that the software will simply further strengthen the government's control and censorship of the media. Yet the government said it is simply acting in response to parental complaints about the negative affects of the Internet on children. Responding to reporters' questions, foreign ministry spokesman Qin Gang acknowledges the controversy over the software in and outside China. \"However,\" he said in a regular press conference last week, \"no matter how many different views there are, the Chinese government assumes the responsibility to protect our youth from unhealthy information on the Internet, and so do various social circles and enterprises. This is the essence of this problem.\" The government said it is simply providing the software free of charge, as a" ]

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[ "Attackers launched assaults across Iraq over the past 24 hours, killing 11 police recruits and six civilians, including a 7-year-old. Iraqi and U.S. troops conduct a joint patrol Monday in the northern city of Mosul during a push against insurgents. Also, the U.S. military said it killed an al Qaeda in Iraq leader in northern Iraq. The violence erupted as a peace agreement was taking hold in Baghdad's Sadr City, for weeks the scene of battles between Iraqi security forces and Shiite militias. A suicide bomber exploded his vest outside the house of an Awakening Council leader, Sheikh Mutleb al-Nadawi, about 50 miles (80 kilometers) east of Baquba in Diyala province, the military command in Diyala said. Al-Nadawi was in the house and escaped injury, but a 7-year-old was killed and two of al-Nadawi's bodyguards were wounded. Awakening Councils are the U.S.-backed Sunni groups that oppose al Qaeda in Iraq. A mortar round landed on a busy outdoor market in Balad Ruz, about 25 miles (40 kilometers) east of Baquba. Three civilians were killed, and nine were wounded. A bomb exploded Tuesday inside a minibus in southeastern Baghdad's Rustumiya district, killing two passengers and wounding five, an Iraqi Interior Ministry official said. Insurgents also attacked a minibus filled with police recruits Monday in Baaj, a Nineveh province town near the Syrian border, killing 11 people, according to Mosul police. Iraqi security forces arrested 15 people in connection with the attack. Backed by U.S. soldiers, Iraqi forces have been conducting an offensive against al Qaeda in Iraq in Mosul and the rest of Nineveh province. American-led coalition troops killed a senior al Qaeda in Iraq leader east of Samarra in northern Iraq on Tuesday, the U.S. military said. Meanwhile, the agreement forged to end the weeks of fighting in the capital's Sadr City is taking hold, government officials and witnesses said. Thousands of soldiers and police officers have moved deep inside the restive neighborhood without resistance from Shiite militia members who have been fighting Iraqi and U.S. troops. The troops have been clearing mines and soon will begin the process of confiscating weapons, officials said. No violence has been reported in the area since Monday. ", "Much of the earlier fighting involved the Mehdi Army militia of Shiite cleric Muqtada al-Sadr and security forces dominated by a rival political party, the Islamic Supreme Council of Iraq. The latter is the leading party in the government's United Iraqi Alliance bloc. The agreement, hammered out between the United Iraqi Alliance and the Sadrists, is intended to clear the neighborhood of weaponry and outlaws and restore stability to the area. Tahseen al-Sheikhly, civilian spokesman for Baghdad's security plan, said there has been great cooperation among residents, Sadrist supporters and government forces. Gen. Qassim Atta, the military spokesman of Baghdad's security plan, said Tuesday that checkpoints and patrols have been established and coalition forces are ready to help Iraqi troops, but they have not entered Sadr City. Elsewhere in Baghdad, the trial of Saddam Hussein-era officials Tariq Aziz, Ali Hassan al-Majeed -- also known as Chemical Ali -- and six others resumed Tuesday. They are facing charges in connection with the executions of 42 Iraqi merchants in 1992. CNN's Mohammed Tawfeeq contributed to this report." ]

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[ "Coalition forces found 26 bodies buried in mass graves and a bloodstained \"torture complex,\" with chains hanging from walls and ceilings and a bed connected to an electrical system, the military said Wednesday. Twenty-six bodies were found in mass graves near a \"torture complex\" discovered by coalition forces. The troops made the discovery while conducting an operation north of Muqdadiya, Iraq. From December 8 to 11, the troops who found the complex also killed 24 people they said were terrorists and detained 37 suspects, according to a statement issued by Multinational Division North at Camp Speicher in Tikrit. The moves were part of an operation called Iron Reaper that has been in progress across northern Iraq for the past few weeks. The complex was in an area thought to be an al Qaeda in Iraq haven and operating base, the military said. Iraqis had told the military about the site during an earlier operation. \"Evidence of murder, torture and intimidation against local villagers was found throughout the area,\" the military statement said. Ground forces first found what appeared to be a detention facility, which was one of three connected to the torture complex, Multinational Division North said. One of the facilities appeared to have been a headquarters building and a torture facility, it added. As the area was cleared, the bodies were found. Eventually, 26 bodies were uncovered in mass graves next to what were thought to be execution sites, the military said. The bodies are believed to have been dead between six and eight months, according to a gruesome military video shot at the scene. Some had their hands tied behind their backs. Identification is proving to be a challenge because of advanced decomposition. Photos given to the news media show a filthy bed wired to an electrical system, with an outlet hanging from wires on the wall. In the video, troops point out rubber hoses and boxing gloves, a ski mask and a blood-covered sword and knives. Other still photos show an entrance to the underground bunker and barbed wire stretched outside it. A short distance away from the complex, troops found a bullet-riddled Iraqi police vehicle. Some of the bodies may belong to Iraqi police, according to the military video. The operation netted nine weapons caches, which have been destroyed, the military said. They included anti-aircraft weapons, sniper rifles, more than 65 machine guns and pistols, 50 grenades and a surface-to-air missile launcher and platform, the statement said. ", "Also found were mines, pipe bombs, rocket-propelled grenades, mortar tubes and rounds and 130 pounds of homemade explosives. E-mail to a friend" ]

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[ "ly because of a contact-free economy that is beginning to emerge; virtual conferences, virtual investor discussions, how you order your Christmas gifts, how you order grocery. All of this is really an example of how this contact-free economy and digital acceleration that is really driving the growth of semiconductor. So you want to think about our electronic business not so much with the mobile revolution how you thought about our business then -- in the last decade where mobile revolution was really the biggest growth driver for us. But going forward, you want to think about our electronic business more in terms of digital acceleration. So that would mean, two to three times GDP kind of growth over the long cycle.\nAnd on infrastructure, it is still slow. We are continuing to get orders, we're continuing to work on those things, but it is not at the same rate as one you would expect. So 5G in our mind is still an emerging opportunity.\nJeffrey D. Hammond -- KeyBanc Capital Markets -- Analyst\nOkay. And then medical, you characterized as stable. I guess, I think this business is historically kind of a high-single-digit, low-double-digit grower, and maybe I'm just assuming stable means a little bit of growth. But I'm just trying to understand how you think the growth rate shapes up for medical and kind of these puts and takes around elective surgeries, maybe coming back as we get vaccine distribution versus kind of comps from PPE equipment, etc.?\nSundaram Nagarajan -- President and Chief Executive Officer\nYeah. So I think that's a great question, Jeff. In terms of our medical business, there are really two parts to the medical business that sort of allow us to have flat-to-low single-digits, but you got to remember the context. Context really is, our med device customers are down 10%, 15%. So that's the context. And so why are we doing better than in that context, it's really because we have a fluid component business which is really serving the biopharma end markets as well as fluid components for COVID-type therapies, right?\nSo what you're finding is our fluid component business is doing incredibly well, which is muting some of the declines we're seeing in our interventional component business, which is directly correlated to the selective surgeries and elective surgeries. So big picture, if you think about our elective-selective surgery kind of related component business, it's down a little bit, down a bit.\n", "In the long-term, all of the drivers; aging population, single-use component, outsourcing our med device component, all of those are intact. As things normalize, we will return to mid-to-high single-digit kind of growth of this business, and that's our expectation. And right now in this transition, if you think about elective surgeries, in July, they were down about 75%. They were 75% up pre-COVID levels, elective surgeries were. And our expectation was they were going to improve, but they have not. So as you know, as these elective surgeries improve, what you're going to find is that we will benefit from it and we will return to our mid-single-digits, high-single-digits kind of growth in the medical business. So let me stop there. If you have any follow-up, I certainly will be happy to.\nJeffrey D. Hammond -- KeyBanc Capital Markets -- Analyst\nNo, that's great. Just maybe last one. I understand the uncertainty. Just give us a sense of what you need to see or I don't know if it's just a couple more quarters before you kind of flip to a more full year kind of outlook? Thanks.\nSundaram Nagarajan -- President and Chief Executive Officer\nYeah. Joe, you want to take that?\nJoseph P. Kelley -- Executive Vice President and Chief Financial Officer\nYeah. Our hope is that our visibility will improve or I should say our confidence as it relates to the volatile time that we're in with the pandemic here in Q1 and Q2. And so our hope is that by the time we have our Investor Day that Naga referenced, we will resume annual guidance at that time.\nJeffrey D. Hammond -- KeyBanc Capital Markets -- Analyst\nOkay. Thanks so much everyone.\nSund" ]

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[ " the strong fourth quarter of 2020. Gross margins approached the high end of our model, and our non-GAAP EPS grew 38% from a year ago.\nFor the full year, non-GAAP EPS grew 92% on revenue growth of 44%. That's well above the revenue growth rate of analog semiconductor industry, which was on track to grow about 30%. Over the past three years, we have averaged 19% top-line growth, almost three times the rate of the analog sector. The revenue growth in 2021 was broad-based and diversified with all four revenue categories growing at least 35%.\nWe gained share across a broad range of end markets, including appliances, smartphone chargers, notebooks, and a range of verticals in the industrial category. We have strong momentum coming out of 2021, and we could not be more excited about the opportunities ahead of us in 2022 and beyond. The secular trends underpinning our growth last year remained in full effect, including energy efficiency, electrification, smart homes and appliances, and advanced chargers for mobile devices. GaN was a significant contributor to our growth in 2021, with revenues tripling from the prior year, and we expect strong growth again in 2022.\nGaN-based InnoSwitch products and complementary products like MinE-CAP are driving a revolution in chargers, and we have a wide range of impressive smartphone and notebook designs coming to market in the months ahead. We also have new revenue streams coming online this year from motor drives as our BridgeSwitch products begin ramping at appliance customers and from automotive with multiple EV design wins going into production later in the year. Our unique foundry model and timely investments in capacity, which enabled us to win market share in 2021, will help us again in 2022 as lead times remain stretched across the industry. Our team executed beautifully last year under challenging conditions, assessing genuine customer needs, building the right mix of parts, and keeping customer lines running while guarding against inventory builds and excess ordering.\n", "Our inventories are nearly back to our target level, and we are in a great position to support strong demand in 2022. We will also introduce new products this year that will extend our lead over the competition while expanding our addressable market. We have a pipeline of products incorporating industry-leading technologies, such as our proprietary GaN switches, FluxLink isolation technology, the BridgeSwitch architecture for motor drive, and our SCALE gate driver technology for high power. In all, we expect to double our addressable market to more than $8 billion over the next five years with the expansion primarily coming from the appliance, industrial, and automotive markets.\nWe announced one such product earlier this week, a new member of our InnoSwitch three family of ICs, qualified for automotive use. Our InnoSwitch products are rapidly gaining acceptance in EV power supplies, thanks to their efficiency and their high level of integration, which saves precious board space while enhancing reliability. This latest InnoSwitch device designed for next-generation 800-volt EV platforms incorporates a 1,700-volt silicon carbide MOSFET. The challenges of high voltage are new to the automotive market and customers are eager to tap our expertise.\nAs noted earlier, we have multiple automotive design wins going into production later this year, including an emergency power supply for a Tier 1 automotive supplier. We have additional designs scheduled for production in 2023 and 2024, and a strong pipeline of design activity involving seven of the world's top 11 automakers. While revenues will ramp gradually given the length of automotive design cycles, we are excited about our progress, and we are investing in products, people, and facilities to make automotive a significant part of our business in the coming years. Another new revenue stream for 2022 is motor drives.\nOur BridgeSwitch products drive brushless DC motors, which are being adopted by appliance makers to keep pace with the efficiency requirements such as China's n" ]

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[ " EBITDA of $74 million declined 17%, primarily driven by lower volumes. During the first quarter, CommScope saw continued strength in 5G-related orders from T-Mobile as this important customer continues to move aggressively to deploy at 600 megahertz and 2.5 gigahertz spectrum. We anticipate C-Band-related 5G spending on CommScope products by other major North American carriers to accelerate later this year and thereafter.\nHowever, in the shorter term, we're seeing a lower spending levels from these carriers than we experienced during the first half of 2020. As the race to 5G progresses, CommScope offers a broad portfolio of products and solutions that carriers will need to support comprehensive upgrades to their macro tower infrastructure. Telco carriers recognize CommScope as a leading provider of everything on the macro tower except radios. This does not include only base station antennas supporting 5G frequencies, but also a wide range of complementary products and solutions that will be critical to operators, as they manage the added complexity of 5G tower configurations. These solutions include HELIAX, coaxial and fiber cabling, power shift power management, cabinets and steel reinforcements, which, together with our passive and active antenna solutions provide a complete toolkit for 5G tower upgrades. CommScope also continues to innovate around 5G use cases, as demonstrated by our integrated active/passive antenna solution in partnership with Nokia.\nWe now have over a dozen trials of this product ongoing with European, Middle Eastern and Latin American customers and we anticipate that this hybrid solution will gain interest among U.S. carriers as a unique and cost-efficient tool for managing the 4G to 5G transition. I would add that after several quarters of softness, our metro cell business is starting to pick up as municipalities begin to clear some of the COVID-related backlog of zoning and permitting applications for the metro layer densification projects that will also be required to provide seamless 5G connectivity. Turning to slide 11 for our Home Networks segment. Net sales of $489 million declined 19% in across most regions. Despite healthy demand for both video and broadband gateway products during the quarter, the Home Networks' revenue decline was driven almost exclusively by an acute shortage of semiconductor chips. Adjusted EBITDA of $16 million increased 38% from the prior year despite this topline decline.\n", "This improvement in profitability was primarily driven by the significant cost optimization actions taken over the past 18 months to better align the segment's cost structure to its recent revenue performance. The combination of strong demand and constrained ability to ship products led to a sharp growth in backlog during the quarter, which has risen to more than two times historical averages, the highest level since we acquired the business in 2019. We believe that these supply chain difficulties are transitory and that we will eventually convert this backlog into sales. However, our current view is that we may not see a return to a fully normalized silicon supply environment until early 2022. Given that we have been very proactive in taking costs out of the Home Networks business, we're confident that the segment will show improved financial results once the silicon shortage subsides. Within the video business unit, Home Networks continued to score wins with new and innovative IP streamer products. This is particularly true in international markets where we've had success during the first quarter with new orders for streaming devices in Europe and Zebra processes in the Asia Pacific region as well as traditional set-top wins in key Eastern European countries.\nFor the broadband gateway business, Home continues to build on multiple DOCSIS 3.1 gateway wins in the highly strategic Latin America market and is also gaining traction for the XB7 platform with North American syndication players. Turning to slide 12 for an update on our cash flow. For the first quarter, cash flow from operations was a us" ]

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[ "forms. We currently expect stronger second half PON demand as PON tenders for this year in China indicate unit volumes similar to calendar year '18 volumes. However the medium term impact of the Huawei ban on our PON demand will not be clear for another quarter.\nOur wireless base station demand was also weak in Q1, and we expect this business to also be negatively impacted in Q2, due to the Huawei ban. For FY '20, we expect to see further spending on 4G deployments as well as the ongoing ramp of 5G platforms throughout the year, with stronger growth expected in FY '21. We remain excited about our market opportunity for 5G base stations, which we believe could more than double from 4G and due to the larger volumes and additional content as we expect most optical links to require CDRs.\nDespite the current challenges faced by our Signal Integrity Products Group in this fiscal year, we remain very confident in our strategy. And expect our SIP Product Group to grow nicely over the next few years, driven by the ongoing expansion of cloud and hyperscale data centers, the global transition to 5G base stations, and the acceleration of 10 gig PON deployments.\nFor Q2 of fiscal year '20, we expect net revenues from our Signal Integrity Product Group to be approximately flat.\nMoving on to our Protection Product Group. In Q1 of fiscal year '20, net revenues from our Protection Product Group declined 8% over the prior quarter, and represented 30% of total net revenues. Demand from all end markets remained relatively weak in Q1. Our automotive protection business gained momentum in Q1, and reflects the need for high performance protection used in Advanced Driver Assistance Systems. Semtech's superior protection performance including that of our recently announced our RClamp3552TQ enables our customers to offer enhanced robustness for infotainment systems, incorporating ADAS functions.\nAdditionally newer high speed interfaces such as USB 3.1 Type C, 10-gig Ethernet and HDMI 2.1 are rapidly proliferating across all end markets and applications. As a result, we see growing demand for our high performance protection platforms that address these interfaces.\nOur Protection Products Group remains focused on diversifying from the high end consumer market to the broader industrial markets, where there is an increasing usage of more advanced lithography devices. We believe our investments in these broader markets will enable us to diversify our business over the next few years.\n", "In Q2 of fiscal year '20, we expect our protection business to increase as demand from the broad-based industrial end market is expected to recover.\nTurning to our Wireless and Sensing Products Group. In Q1 of fiscal year '20, net revenues from our Wireless and Sensing Products Group decreased 9% sequentially and represented 32% of total net revenues. Weaker demand from the industrial end markets contributed to the decline. Despite the recent softness in our Wireless and Sensing business, due to a weak China demand environment, we do expect to see improving demand throughout the rest of the year.\nOur LoRa momentum continues to build and we are seeing very exciting momentum across the globe underlined by some of the key lower metrics we track. These include the number of public or private LoRa network operators increased in Q1 to approximately 113 from 100 at the end of fiscal year '19. We now expect a 130 LoRa network operators by the end of fiscal year '20. The number of countries with LoRa networks grew to more than 74 countries. By the end of fiscal year '20, we expect over 90 countries to have LoRa networks.\nThe estimated number of LoRa gateways deploy increased to more than 300,000. These gateways will support approximately 1.5 billion connected end nodes. We expect the number of LoRa gateways deployed to exceed 500,000 by the end of fiscal year '20 supporting a LoRa end mode capacity of over 2 billion end nodes. The estimated cumulative number of LoRa end nodes deployed -- increased to approximately 97 million. We expect this number to exceed 140 million by the end o" ]

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

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[ "Seraphin -- Chief Executive Officer\nThanks, Sidney.\nOperator\nYour next question comes from the line of Mehdi Hosseini with SIG. Your line is open. You may ask your question.\nMehdi Hosseini -- Susquehanna International Group -- Analyst\nYes, thanks for taking my question. Just want to follow up to Sidney's. And want to dig into silicon IP opportunities, especially with AI and machine learning. And this is something that, in my opinion, we're still in the early phase.\nBut I want to see how much of those incremental opportunities are part of your expectation? Or would this actually provide any upside to your overall opportunities for this year and beyond? And I have a follow-up.\nLuc Seraphin -- Chief Executive Officer\nHi, Mehdi. The AI and ML opportunities do add potential revenue for our IP cores, especially HBM where we do show a very high-bandwidth capability, you know? AI is going to be consuming a large portion of the data center growth going forward. So anyone building a chip for AI that goes into data center will eventually need these high-speed interfaces, mostly HBM, to some extent, GDDR6. So these growth of AI into the data center, the data center market growth itself are driving growth for IP cores.\nYou know, IP core business is growing in double-digit growth, but the AI through HBM GDDR6 are the main drivers for that.\nMehdi Hosseini -- Susquehanna International Group -- Analyst\nSo -- but would it be possible that this were early in adoption and perhaps if it materializes, it may provide upside to your expectation for this year and beyond? Or is it already dialed into what you have communicated for opportunities?\nLuc Seraphin -- Chief Executive Officer\nMaybe it is dialed in what we have communicated for our opportunities. The Rambus strategy has always been to focus on data centers and high-speed interfaces. So what we've done over the last few years is we focus our portfolio on the IP that serves those markets and HBM, GDDR6 controller, and PHY as well as a security IP focus on to benefiting from that market growth. So this is dialed in our expectations.\nMehdi Hosseini -- Susquehanna International Group -- Analyst\nGot it. Thank you. And just a quick follow-up. Your pro forma opex over the past fourth quarter has remained below $50 million.\n", "Is this something that we should be thinking of over the next four to eight quarters like at most $50 million of opex?\nRahul Mathur -- Chief Financial Officer\nHi, Mehdi, it's Rahul. Thanks very much for the question, and we're delighted to have you on the call today. In terms of an opex perspective, look, I think we've done a fantastic job of improving our operational efficiency and in particularly taking cost out of SG&A. What you've seen is that we've taken probably about $20 million of cost out compared to where we were a couple of years ago.\nMy expectation is that from an overall opex perspective, our SG&A through the course of this year should stay roughly flat on a quarterly basis. There's always some ins and outs on a quarterly basis related to tax or hiring or other things as well. What I'd expect, though, is that if we had some increases in spend, it would be on the R&D side. We are investing in these very exciting product programs that Luc was talking about earlier, both on the chip side as well as on the silicon IP side.\nSo you might see a little bit of increase on the R&D side from a quarter-to-quarter perspective. But I think that, you know, 50 million a quarter, we should be under that through the course of this year. But I'd like to see us continue to invest in R&D toward the back half of this year and then out in the future to fuel these products -- plans that are growing very nicely. Maybe to the question you're asking earlier, you know, we look at our silicon IP business on total, as Luc mentioned, growing kind of in the double-digit range on an annual basis.\nAnd that's embedded, I think, in the growth estimates that you see for analysts and consensus estimates. And I think I mentioned that in our prepared remarks.\nMehdi Hosseini -- Susquehanna International G" ]

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[ " and Chief Executive Officer\nOkay, great. Absolutely, you were breaking up a little bit. I think Lloyd is feeling a little lonely here in the Q&A section, but I'll get started. I think the answer is absolutely. I think 5G is emerging as an important set of technology. It's really a family of technology. It's not one thing. It's not just millimeter wave and that family of technologies is of increased importance, not just in the commercial market, but across the government, including DoD.\nThere's cyber implications of 5G. There's operational implications of 5G. There's the ability to move both processing and information to the edge in a way that it would advantage many missions. And I am proud of the fact that much like everything else in our innovation agenda, we saw this relatively early, we began to position for it and we have some really interesting work going on across the government that, in my mind, begins to define us as a thought leader in this area, much like we are a thought leader in AI.\nAnd by the way, these two technologies ultimately do travel together. So, more to think about that, more to say about that. If you ask me, is that a big part of the portfolio? Though we're not scaling there like we have scaled in AI already, but I think the future is bright. And I think we're well positioned.\nMatthew Sharpe -- Morgan Stanley -- Analyst\nGreat, thank you.\nHoracio Rozanski -- President and Chief Executive Officer\nSure.\nOperator\nThank you. Our next question comes from the line of Gavin Parsons from Goldman Sachs.\nGavin Parsons -- Goldman Sachs -- Analyst\nHey, good morning.\nHoracio Rozanski -- President and Chief Executive Officer\nGood morning.\nLloyd Howell Jr. -- Chief Financial Officer and Treasurer\nGood morning.\nGavin Parsons -- Goldman Sachs -- Analyst\nHoracio, maybe a higher-level question. In the past, you said your growth is not constrained by demand, but kind of more so by your ability to hire and then ramp up the work. So, I'm just curious, when you think about growth pacing or maybe planning for growth, do you say we want to grow 6% to 10% this year and then we'll hire to make that happen? Or is it -- we think we can hire and integrate enough people to grow 6% to 10%, so that's our target?\n", "Horacio Rozanski -- President and Chief Executive Officer\nThat's a really good question. And I think the answer is yes. We've narrowed to 7% to 9%. We're proud of the fact that we're going to have a strong growth here in the middle of a pandemic with very strong profitability. But I think that sort of the broader answer to the question is, we still see very strong demand signals for the type of work that we're doing for the type of capability that we bring to our clients. We are being choosy, if you will, in terms of both the work that we choose to pursue and the people that we're hiring to make sure that they are consistent with this intersection of core mission issues and next generation technology because we believe that is both the most promising and the most resilient part of the market as the market experiences some turbulence.\nAnd so, the numbers that we're putting out are not the very most we could possibly go if we were more sort of -- if we were less discriminant about the work that we're doing. These are the numbers that gave us both excellent financial performance in the near term, but we believe sustainability into the medium and long term.\nGavin Parsons -- Goldman Sachs -- Analyst\nOkay. And then maybe, following on that and just looking at backlog growth over the last few years and just a lot of that being driven by priced options, did those price options have a finite life that you need to execute on within a certain time frame or funding expires? And I'm just kind of thinking about that in the context of maybe a more challenged budget environment ahead where the contracting officers might have to make more difficult decisions on what to fund.\nLloyd Howell Jr. -- Chief Financial Officer and Treasurer\nI'll jump in here. We see priced options as a leading indicator in a couple different ways. One, our client" ]

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[ "tinually seek opportunities to expand our footprint. We look for non-regulated investments to meet three fundamental criteria. Investments that are; one, strategically relevant and related to our core energy businesses; two, that meet our return targets; and three, that exhibit risk profiles that are consistent with our existing non-regulated businesses. We seek to provide total shareholder return in the upper quartile of our peers and build short and long-term performance, a product of our earnings and dividend growth driven by capital projects that can achieve an adequate return on investment at our prescribed targets. On this slide we've identified the primary drivers of growth that we are constantly pursuing. I can envision us expanding this diagram further next year as we pursue opportunities across the value chain for CNG, RNG and eventually LNG.\nProjects completed or under way are highlighted on Slide 13. As Beth noted in regards to our capital forecast for 2020, we still primarily invest in regulated businesses, most notably transmission pipelines and distribution mains to add services to new customers and existing or expanding geographic areas. We're also comfortable with strategic investments in our unregulated businesses, propane distribution acquisitions like Boulden and Western Natural Gas at the Marlin Gas Services, Eight Flags, Aspire all have similar characteristics to a regulated utility but have consistently generated increased returns above the allowed regulated utility returns.\nFor us, our non-regulated businesses are core to who we are and to what we do. They are the means for achieving our higher than regulated ROEs and also support our EPS growth track record and projected EPS growth profile. As shown on the slide, we've been able to complete numerous projects and acquisitions and successfully integrate them into the Chesapeake family and we're actively engaged in many other projects that we believe position us for future growth. Our pipeline investments in particular give us the opportunity to expand local gas distribution for new customers and transport renewable natural gas.\n", "Let me provide a little more detail on our most recent propane acquisition on Slide 14. On October 26th, we completed the acquisition of Western Natural Gas, a family owned business founded in the 1940s. Western Natural in the Jacksonville, Florida area adjacent to our Northeast Florida service territory in Nassau County on Amelia Island, the business will operate under the Sharp brand with current volume of about 1 million gallons annually that serves approximately 4,000 customers. We believe the commitment of Sharp and the legacy of Western Natural Gas team to provide quality service will be an advantage to increase the customer base as that important market continues to grow. We're also excited about the opportunities to market our oil and gas offering and leverage other programs and services that have been key to Sharp's success.\nAs shown on Slide 15, our regulatory team successfully settled with the Florida Public Service Commission on the Hurricane Michael limited proceeding in September. Florida PSC approved the proposed settlement to recover the costs in the rates associated with our restoration of electric distribution services in our Northwest Florida Division. We recorded storm cost of $45.8 million as a regulatory asset, including interest to be amortized over six years. That resulted in a surcharge of $7.7 million annually. In addition to that, we're also collecting an annual increase in base revenue of $3.3 million to cover the rate base related capital cost associated with our hurricane.\nOn Slide 16 is a table we included in our third quarter press release. Given the various components with the settlement, we thought it would be useful to lay out the details. As you can see the operating income generated from the settlement approximates the net income impact for both the quarter and year-to-date. We note the gross margin year-to-date of $8.3 million and projected for the year of $11 million in the following ke" ]

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[ "an you maybe help us to understand how fast do you think the new functionalities will be implemented in TWS? Are you seeing any major customers stop to -- start to integrate more complex technologies in this year's models or maybe are they start talking about more features for future product roadmaps?\nGideon Wertheizer -- Chief Executive Officer\nUsually, in connectivity, it takes about one-year design cycle and depending when we do the license, I believe, so obviously, you'll start seeing the second half of [Indecipherable] the next Christmas season, you start to see this product in the market.\nMartin Yang -- Oppenheimer -- Analyst\nGot it. My final question is on Wi-Fi 6. Based on your current customer engagement, what are the new functionalities are you seeing in end product that is realized by Wi-Fi 6, which is not available in previous generations of products?\nYaniv Arieli -- Chief Financial Officer\nWi-Fi 6 is a new standard for connectivity, Wi-Fi 6 is even the latest one. And the -- our business is really is to enable customer to grow fast in the customer end market and what we see in terms of customer going into new market is access point, Wi-Fi access point and all sort of IoT devices starting from the TV, smart speaker, all sort of wearable devices and even automotive to do the Wi-Fi in the car -- in the cabin itself. So those are the customers, these customers are usually customers that are not familiar with connectivity and would believe if somebody expert or specialized to provide them these total solution compliant with the standard interoperable wearable device. That's something that we -- CEVA is the only today IP company that -- the only go-to guide today in the IP space, if you're looking for IP, I don't have any other one that is closable and competence with us. That's the reason that we see all this.\nMartin Yang -- Oppenheimer -- Analyst\nGot it. Thanks.\nYaniv Arieli -- Chief Financial Officer\nThank you.\nOperator\nThis will conclude our question-and-answer session. I'd like to turn the conference back over to Richard Kingston for any closing remarks.\nRichard Kingston -- Vice President of Market Intelligence, Investor and Public relations\n", "Great. Thank you. Thank you all for joining us today and for your continued interest in CEVA. As a reminder, the prepared remarks for this conference call are filed as an exhibit to the current report on Form 8-K and accessible through the Investors section of our website. With regards to upcoming conferences and events we will be attending, we have the following virtual conferences upcoming. The Susquehanna 10 Annual Technology Conference, March 9 to 11 and the Roth Virtual conference from March 15 to 17. Further information on these events and all events that we will participate in can be found on the Investors section of our website. Thank you and goodbye.\nOperator\n[Operator Closing Remarks]\nDuration: 63 minutes\nCall participants:\nRichard Kingston -- Vice President of Market Intelligence, Investor and Public relations\nGideon Wertheizer -- Chief Executive Officer\nYaniv Arieli -- Chief Financial Officer\nMatt Ramsay -- Cowen -- Analyst\nSuji Desilva -- Roth Capital -- Analyst\nTavy Rosner -- Barclays -- Analyst\nDavid O'Connor -- Exane BNP Paribas -- Analyst\nMartin Yang -- Oppenheimer -- Analyst\nMore CEVA analysis\nAll earnings call transcripts\n\n\n\n\n" ]

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[ "h back-to-school activity being in person. But that's on the come, and I hope that happens.\nWe're not really counting on that or trying to build that into our guidance. But we are seeing new fits continue to improve. Demand is there. We're seeing that on a global basis.\nI don't want to get into quarters or months. But I mean, I will say February grew. So, CooperVision grew in February, which was another good positive step in the right direction.\nLarry Biegelsen -- Wells Fargo Securities -- Analyst\nThat's super helpful. And Al, on MiSight, any color on China, the likelihood of China getting approval in 2021? And on Essilor, how do you see this playing out long term? You guys both have other myopia management products. Can you -- I know it's early, but can you envision kind of this JV building becoming broader over time with, in addition to SightGlass?\nAl White -- President and Chief Executive Officer\nSure. Yeah. With respect to China, we're continuing to have conversations on the regulatory front there. We'll see.\nNot too much to update on that. I mean, still, I would kind of say cautious optimism that we get approval at some point here this year but still some decent work to do on that. With respect to Essilor and the JV, yeah, I mean, Essilor is a great company. We have a great relationship with those guys.\nWe're starting that myopia management journey together, if you will. They have a spectacle in the market. We obviously have a lot of products in the market between Ortho-k and MiSight. Coming together on SightGlass Vision should be a home run.\nWe're all alike mindset of wanting to be really successful there. Ultimately, does that JV expand and include other things, potentially, we'll see how that plays out. I mean, right now, there's so much activity, and we're having so much success that we have our hands full, certainly. But if it makes sense, if it makes strategic sense, it's something we would evaluate certainly.\nLarry Biegelsen -- Wells Fargo Securities -- Analyst\nThanks, Al.\nOperator\nNext is Matthew O'Brien from Piper Sandler. Your line is now open.\nMatthew O'Brien -- Piper Sandler -- Analyst\n", "Thanks. Afternoon. Thanks for taking my questions. Al, I hate to talk about a product that's 0.5% of sales this quarter, but MiSight gets a ton of attention.\nSo, can you bridge us from this 3 to 25 million this year just because it's all going to be domestic, right? I mean international is probably not going to contribute a ton of a big. I'm sure Russia will be nice, but it's going to primarily be domestic. You've got 3,000 people here that are trained. If you do the math, it's like they need to basically put a patient on per month for the last nine months of this year.\nSo, can you just give us some more color, it really bridges to the -- from 3 million up to 25 million for the full year to make us comfortable that you can get there?\nAl White -- President and Chief Executive Officer\nSure. I mean, first of all, I would say that our growth outside of the U.S. was 80% or so. So, I mean, you're talking about -- the vast majority of that 3 million in sales was outside of the U.S., growing somewhere in the 80-plus percent kind of range.\nWe're getting good growth here in the Americas when you look at somewhere like Canada. We're just at the very early stages here in the U.S. of a lot of the revenue recognition. So, we have thousands of kids, a couple of thousands or more wearing the lens right now.\nSo, I think if we continue to be successful here in the U.S., that's great, and we will continue to be successful. I mean, I see the numbers; I see the ramps coming, I see the fittings all the way through February here, see the revenues moving up nicely, all that kind of stuff. But I would not diminish outside of the U.S. I mean, whatever, it was 2.9 million, growing 80% and accelerating.\nSo, that's going to drive a lot of the growth.\nMatthew O'Brien -- Piper Sandler -- Analyst\nYeah. And sorry, just to be more clear, I think last quarter, it was 2.5 million. And then, this quarter, it was 3 million. And I think you said you just did 10" ]

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[ "Dry skies greeted Georgia for a second day Wednesday, giving residents a chance to mourn, recover and repair after devastating floods killed nine people earlier this week. Douglas County, Georgia, emergency managers provide water Wednesday to residents without treated water. Water was beginning to recede in many areas, and some roads, including Interstate 285 and Interstate 20, were reopening. Several others remained closed, state authorities said. As of Tuesday afternoon, hundreds of people were still in shelters, with more than 250 people in the Cobb County Civic Center, according to the Red Cross. There are cases where people have lost everything, spokeswoman Lisa Matheson said Tuesday. Before they were evacuated, Cordell Albert and her husband, Christopher, moved their valuables to the second floor of their Powder Springs home, CNN affiliate WGCL reported. \"I feel lost,\" she said, according to the affiliate. \"I feel homeless.\" Watch more about the flooding aftermath and cleanup » Gov. Sonny Perdue has declared a state of emergency in 17 flood-stricken counties, and State Insurance Commissioner John Oxendine estimated that the flooding has caused an estimated $250 million in losses. Watch where the flooding hit hardest » \"Many of the homeowners afflicted by this event don't have flood insurance,\" he said in a written statement. Georgia's flood-related death toll has reached nine, authorities said, with six deaths alone in Douglas County, west of Atlanta. To the north, one person was missing and presumed dead in Chattanooga, Tennessee. See photos of the flooding » Perdue spoke to President Obama on Tuesday night about the flooding, White House spokesman Nick Shapiro said. The president \"expressed his condolences for the loss of life and his concern for the citizens of Georgia amidst the ongoing flooding,\" Shapiro said. Perdue updated Obama on the situation, and the two discussed the response to the crisis, Shapiro added. The president also assured the governor that his request for federal aid would receive prompt attention, the spokesman added. Parts of northwest and south-central Georgia, as well as the metro Atlanta area, were still under flood warnings Wednesday. Also on Wednesday, students from three of metro Atlanta's four largest school districts were returning to classes after flooding caused school closings the day before. Watch what caused such torrential rain » But CNN meteorologists said rain was not likely for much of the state Wednesday, although isolated thunderstorms in north Georgia were possible. Georgia may also see rain this weekend, CNN meteorologist Jacqui Jeras said. ", "\"Of course, we're not expecting another foot of rain,\" she said, \"but we could pick up an inch or two.\" iReport.com: Horses pulled to safety from flooded creek On Tuesday, Perdue pleaded with residents to stay off flooded roads, noting that nearly all the fatalities in the state were drivers and passengers swept away by floodwaters. CNN's Carolina Sanchez, Shawn Nottingham and Samuel Gardner contributed to this report." ]

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[ "The hallowed grounds of Arlington National Cemetery took on a different tone Monday -- the usually quiet and reverent resting place of fallen heroes was buzzing with volunteers, professional landscapers and their equipment during the annual \"Renewal and Remembrance\" project. Monday was the annual \"Renewal and Remembrance\" day at Arlington National Cemetery. \"Renewal\" was started more than 10 years ago by an Ohio lawn-care group that wanted to give a day of service to the cemetery outside Washington, according to Bill Hildebolt, spokesman for the Professional Landcare Network. \"It's grown fantastically from a few lawn-care operators to today we had over 400 individual PLANET members,\" he said Monday. Each year, volunteers take on several projects during the service day, including spreading lime over nearly 300 acres of the cemetery and installing irrigation systems, Hildebolt said. While the 95 companies participating Monday may normally compete for business in the lawn-care market, during Renewal the crews work together to honor the service members buried at Arlington. \"It's just a day of remembrance,\" said Jeff Dietrich of Pennsylvania-based Joshua Tree, who has been volunteering for four years. A crew of arborists from the Joshua Tree company took on one the most expensive projects -- protecting Arlington's biggest trees from lightning. According to Dietrich, the process of lightning protection is important for protecting a valuable part of history. Watch how trees are protected » \"Lightning, electricity is unpredictable at best. ... It'll blow a tree apart.\" To protect a tree from lightning strikes, Dietrich and his crew climb up to the top of a tree and run copper wires down the trunk with anchors that resemble rifle cartridges. The wire is then grounded by a copper pole entrenched at the base of the tree. If lightning strikes, the electricity runs down the wire and dissipates into the ground instead of harming the tree. Even though it took the Joshua Tree crew longer to reach Arlington from Pennsylvania than the four hours needed to complete their work, the workers seemed eager for their chance to volunteer, cheering each other on while working and sharing some trade secrets with other crews. \"How many people can say they get to come down to Arlington, especially if they're not from around here, and climb some of these trees?\" said Deitrich. For Hildebolt, providing a service for the national cemetery is a way to make a national contribution. \"It's a privilege,\" he said. ", "\"It's a very humbling experience that I'm very proud of.\"" ]

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[ "uawei carriers to start adopting gallium nitride in the rollout. Is that a qualification issue that's limiting that or are we just not in the capital deployment part of the 5G cycle there?\nGregg Lowe -- President, Chief Executive Officer, Director\nI think Huawei has clearly been the most aggressive in terms of the adoption of gallium nitride and best we understand that they haven't done a non-GaN type new development in a number of years. So they've been really leaning forward on that. And other base station manufacturers are developing products with GaN but it was just at little bit slower pace.\nJed Dorsheimer -- Canaccord Genuity -- Analyst\nGot it. And so is that -- if we looked out should we expect that for sort of fiscal 2021 type of time frame, again with the caveat that obviously things are fluid in the market, but is that sort of the timeframe that you're planning too there?\nGregg Lowe -- President, Chief Executive Officer, Director\nMaybe, Jed, but what I would say is there is kind of another element of this whole story and that is the biggest market for 4 or 5G is likely going to be China. The biggest player is Huawei in that market and best we can tell from the data that's out there. The thought process that non-Huawei players who are going to pick up that business in China doesn't seem to have played out that way at least at this point. So I don't know exactly what that means and when that transition happens with other players picking a part of that, but at least at this point, it's been now 5.5 months since the entity list came on board and that doesn't seem to have happened?\nJed Dorsheimer -- Canaccord Genuity -- Analyst\nGot it. That's helpful. Thanks. Just moving over to the silicon carbide, the Tesla solution uses one inverter module per motor. So where we in a car that has all-wheel drive, that's two motors. What we're seeing is designs that are different than that out of other EV manufacturers. Do you think that the market will standardize on sort of that Tesla design or do you think it'll be equally shared because obviously that's going to have a pretty big impact on the silicon carbide content if you potentially have two slots or two modules per vehicle versus one?\nGregg Lowe -- President, Chief Executive Officer, Director\n", "We're working with number of different customers that have a variety of different architecture. Some of them have four modules placing one on each wheel. I think it's way too early to tell in the EV market what's going to be the standard or if there is even going to be a standard anytime soon. What I would tell you is the car manufacturers; the OEMs view the engine of the car is sort of the heart and soul of the car. And so they want to performance that they want. They want the soul of the car to become in sort of their image of what they want the driving conditions to be. So I would imagine there is going to continue to be a number of different architectures that are out there, we're engaged in, with most of the Tier 1s and the OEMs in discussions on what these architectures look like.\nBut what I'd also tell you is that the interest in silicon carbide for the inverter has gone from -- we're going to think about it to -- it's likely going to be the solution. So I feel very comfortable that the -- when you look at our design pipeline that -- about half of the $9 billion is related to automotive. I would say, the probability of that pipeline being decided as silicon carbide versus silicon is extremely high. And I would say, we're just working really hard to make it a Cree-based solution.\nOperator\nOur next question comes from the line of Craig Irwin with ROTH Capital Partners. Your line is now open.\nCraig Irwin -- ROTH Capital Partners -- Analyst\nHi, good evening and thanks for taking my questions. So Gregg, when we look at the big picture, right. Your $9 billion pipeline, the activity with customers, we can name like Delphi, Tesla, VW, Porsche. It's pretty easy to put together a longer-term picture, a longer-term growth story where we can have confidence in some fairly significant growt" ]

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[ "d-October are expected to drive 5G service adoption. We are optimistic that we will exceed our annual target for 5G service adoption by the end of this year. In addition, construction of our 5G base station is ahead of schedule and we have established over 3,000 base stations nationwide by the end of the third quarter. Combined with the largest 5G spectrum resources on hand and efforts in 5G innovation development, we expect to obtain a significant portion of government subsidies for 5G network construction and Forward-looking Infrastructure Development, which will help to further accelerate our 5G deployment. In addition, we have teamed up with various partners from different industry verticals as we develop 5G service via B2B2 times models. Our focuses include smart manufacturing, smart transportation, smart agriculture, autonomous driving, smart healthcare and etc. We expect to see some promising results within the semiconductor industry in the near future and look forward to sharing our updates with you. For our broadband business, we are pleased to see continued ARPU uplift as a result of the ongoing increase in higher price plan adoption. Subscriber migration to our broadband of 300 megabits per second or higher continued to increase by 80% year-over-year, contributing to year-over-year broadband revenue growth for the eighth month in a row. The number of Home Wi-Fi devices also increased 140% year-over-year. And MOD business experienced a slight ARPU uplift year-over-year in the third quarter, thanks to the growing stay-at-home lifestyle trend. During the quarter, we continued to see the impact of the COVID-19 pandemic on business. Digital channel access and the transactions increased by 84% to enhance our service efficiency, while international mobile roaming revenue and prepaid card revenue continued to decline due to the ongoing ordered lockdown. We anticipate that this trend will continue in the next several quarters. Now allow me to walk you through each of our business lines. Turning to slide five, you can see an update of our mobile service business. In the third quarter of 2020, we were pleased to maintain our leading market position as we saw a growth in mobile revenue and the number of subscribers with increases to 38% and 37% respectively. In addition, we are optimistic about the number of our postpaid subscribers, which has increased for nine months in a row. This demonstrates our success in both existing subscriber retention and new subscriber acquisition, especially as a result of our back-to-school initiatives. ", "Regarding overall mobile performance, we are pleased to experience the smallest amount of decrease in mobile service revenue in comparison to our peers quarter-over-quarter. This was mainly due to our efforts in guiding subscribers to adopt higher price plans. Excluding ARPU dilution resulting from IoT subscription, we saw our postpaid ARPU increase slightly quarter-over-quarter. As the iPhone 12 rolls out in October, we expect that the bundled subscription at a higher price point will continue to enhance the overall ARPU. Please turn to slide six for an update on our broadband business in the third quarter. During the quarter, we were pleased by the ongoing ARPU uplift in our broadband business, which reflects our success in migrating subscribers to adopt higher speed services by providing attractive packages which bundle multiple home-centric applications. The number of subscription that signed up for connection speeds of 300 megabits per second or higher increased by 80% year-over-year, while VPN circuit revenue contributions from enterprise customers grew as well. Thus, we are confident that we will maintain the overall upward trend in our broadband business, despite the ongoing decline in the number of low-speed subscribers quarter-over-quarter. slide seven demonstrates our MOD business performance. In the third quarter of 2020, our MOD/IPTV platform continued to be the largest video platform in Taiwan and our business remained relatively resilient amid a growing market share. Subscripti" ]

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[ "ur MST SP technology to a very prestigious IEEE power conference.\nThe ISPSD Conference is the premier international forum for technical discussions on all aspects of power devices. Although thousands of papers were submitted, ours was one of only a few selected for the conference in May. There is no doubt that our submission will expand interest in MST SP for the key players in the power semiconductor industry, who we know will attend this important conference in May. Our work on RF-SOI technology, which is critically important to 5G cellular, continues to consume a lot of our time and resources because of its great commercial potential.\nWe hope this area will be one of the earliest to adopt MST and to bring it to production considering the significant improvements we can bring to designs. Likewise, we continue to believe our technology has excellent potential in memory and for advanced nodes. Now I'd like to address some recent developments in the semiconductor industry, which I believe create an exceptionally favorable environment for Atomera. Well, the big headlines tend to focus on how TSMC, Samsung, and Intel are competing to bring the three-nanometer or two-nanometer nodes to market.\nThe industry has recently been recognizing the importance of the legacy nodes and of particular fabs running 200-millimeter wafers. Given the chip supply shortfalls, it seems obvious that the industry needs to add capacity in this area, and 200-millimeter fab capacity is forecast to grow 21% to mitigate the supply imbalance. There are a few problems. First, the vast majority of 200-millimeter lines have been operating in fully depreciated fabs, which can be very attractive financially when operated near capacity limits.\nBuilding new fabs is very expensive and 200-millimeter equipment, which has had very limited production over the last decade, is in short supply and is priced at a premium. This situation will place substantial margin pressure on these companies for many years until they can defray the very expensive build costs. So these new fabs can't easily get equipment, and when they can, the associated capex costs will drive lower profitability than they've experienced in the past. MST can help solve these problems for both the fab owners and their fabless customers by allowing them to shrink die and thus boost throughput with only a minor increase in tool costs.\n", "200-millimeter EPI tools are available and MST will allow operators to continue utilizing their depreciated fabs with the associated good economics. Foundry capacity is forecast to stay tight, while industrywide capex is forecast to grow by 24% in 2022, primarily in 300-millimeter wafer fabs. Deal with the capacity crunch and pay for the capex, fabs are raising prices on their wafers up to 20% now. Industry insiders say that price rises are not transitory.\nThey are permanent. This situation, as fabless semiconductor makers will tell, the need to get more die per wafer is imperative. MST provides a path to get to these improvements that is both easily implementable and at a more reasonable price than most other alternatives. Atomera is spreading this message to industry players, and we believe that it will lead to widespread adoption over time.\nWe remain laser focused on getting the first player into production, which we believe will drive the domino effect that's been predicted for some time. As I've said in the past, we believe industry conditions have reached a point where both near- and long-term structural changes will provide exceptional opportunities for Atomera. In our Q4 call, I said that we were entering into 2022 with strong momentum, and I think you will agree that it has continued with a new licensee, successful execution on our first JDA and the opening of a new JDA. On the technical development side, we also continue to make good progress as recognized important third parties in the industry.\nWe still do have more JDAs and licenses in our pipeline, which I believe will help illustrate our gathering momentum as we move through the year. Now Frank will review " ]

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[ "r example, a lot of conversations about how the supply chain visibility and predictability should be there? What are the supply chain dependencies that the organization has and how would they want to go forward and address those supply chain dependencies?\nThere are questions about how much of process automation should be done, how much of the current work that is being done through our digital operations and platforms organization, how much more automation can be done in those areas, right? There are lot of questions around -- there are lot of conversations around, what kind of new digital migrations can happen, right?\nObviously, all organizations have understood right now that migrating to cloud is one of the best things that has happened for them. Those organizations that have moved to cloud, they have been able to respond to this very well. And so, those conversations about hey, how do I go long term into, what should my architectures look like, right? So we are looking at all the three sets of opportunities right now. Obviously, opportunity sizes do vary depending upon the depth of the organization and how widespread or how geographically spread that organization is.\nOperator\nMs. Nagarajan, do you have any further questions?\nDiviya Nagarajan -- UBS Securities (Asia) Ltd -- Analyst\nYeah. Just a follow-up on that. Would you -- would it be fair to characterize the first two opportunity sets as being typically smaller-sized projects because you did talk about them being more short term and the third set of projects being much more longer term?\nBhanumurthy B. M. -- President and Chief Operating Officer\nYeah. So the time line wise, that is correct. But the first opportunity itself for example making organizations to enable to go them work from home, there could be some of the larger opportunities as well in that depending upon the size of the organization and how ready they are right now.\nDiviya Nagarajan -- UBS Securities (Asia) Ltd -- Analyst\nFair enough. And I think one follow-up if I may that NASSCOM seems to have started lobbying for the government to allow furloughs in the IT services industry. Is that something that you would consider if it comes to -- I think you've talked about tremendous need to control costs, but would that be on the cards as one of the cost control opportunities?\nSaurabh Govil -- President and Chief Human Resources Officer\n", "Saurabh here, absolutely. I think we are right now all options on the card and furloughs is very much on the card. It is a flexible option and it helps us to come back quickly. So very much, we will explore across all the countries possible.\nDiviya Nagarajan -- UBS Securities (Asia) Ltd -- Analyst\nThanks. And all the very best for the year.\nSaurabh Govil -- President and Chief Human Resources Officer\nThanks, Diviya.\nOperator\nThank you. The next question is from the line of Pankaj Kapoor from JM Financial. Please go ahead.\nPankaj Kapoor -- JM Financial Institutional Securities Ltd -- Analyst\nYeah, hi. Thanks for the opportunity. So my first question is on the guidance suspension. I was just wondering is it more because of relatively speaking uncertainty on the volume side or you're unable to look at the kind of a pricing pressure that can come in, which is leading to this decision?\nAbidali Z. Neemuchwala -- Chief Executive Officer and Managing Director\nJatin?\nJatin Dalal -- Senior Vice President and Chief Financial Officer\nYeah. No. I think the -- we articulated the key reason behind guidance is the fluidity of the situation. I wouldn't characterize it any other way. If we could size any angle of it and we were still -- would be able to provide, then we would have provided the guidance.\nPankaj Kapoor -- JM Financial Institutional Securities Ltd -- Analyst\nI understand Jatin. I'm just trying to figure out whether there is lack of visibility in terms of customer demand for pricing only. So, I'm just trying to understand that whether the volume can continue. It is just that the clients are coming to ask for pricing cuts and which we are unable to predict, or is it that the people" ]

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[ " the balanced cost structure across our major delivery centers. At the same time, while we are fully committed to continuing our investments in our strategic differentiators, we are watching very carefully the balance of those investments to our current and immediately visible demand.\nGiven the necessity of looking at our business both from a long and shorter-term point of view, we are heavily utilizing our digital platforms, which have been instrumental in guiding our decisions so far in allowing us to monitor our business on a daily basis and making real-time collaborations when necessary to ensure that we protect our best talent as a key priority while still driving toward our historic growth and profitability levels. On the general slowdown issue, we do believe that in today's technology-dependent world, the real impact of slow demand on the IT services global market most likely should be limited just to several quarters. The pullback will encourage new players to enter the market with new technology-led business solutions and push enterprises to respond with new investment in order to protect their competitive positions, which in turn should accelerate growth for EPAM as our proposition is focused exactly in helping them to bring new strategy and implementation simultaneously in most coordinated and efficient ways. So, our goal today is to prepare EPAM exactly for that time and to be able to respond in fast to the next growth and capability challenges.\nThat is why we plan to focus our attention in the next quarters to further stabilize our global operations and to continuously invest into new talent, new capabilities, new offerings, and new markets and to maintain our strong engineering G&A but, this time, as a much more globally diversified company than ever in the past. Looking at our results for 2022. We generated over $4.8 billion in revenues, reflecting a greater than 28% year-over-year growth. Non-GAAP earnings per share were $10.90, a 20% increase over fiscal 2021.\nAnd we also generated $382 million of free cash flow. And, one more time, we did all that during the year when we had almost 60% of our talent in regions directly or indirectly impacted by war and when we were supporting many thousands of EPAMers and their families during the continuous relocation process. In 2023, we are committed to accelerating our mission of becoming a true value orchestrator for our customers, and we are working every day to stay focused on our customer needs and demands. Even while we continue rolling our geographic expansions, our capabilities, and our commercial offerings of a larger, more diversified and more capable EPAM.\n", "It is a bit strange to talk today again 12 months later about crossing 5 billion revenue mark in 2023 as we did back in February 2022. The war took a year of our life, a year of our growth, but we all know too well that it's nothing in comparison to what people in Ukraine must go through today and what is happening on the ground in Turkey as we speak right now. So, that is why with all that, what didn't change at all is our confidence that is what we build and continuously building, we would be able to navigate the challenges and come back to our 20% plus organic growth rate in the next several quarters and to our 10 billion aspiration within the next several years. With that said, let me turn the call over to Jason, who will talk about our Q4 and full-year '22 results and our business outlook for 2023.\nJason Peterson -- Chief Financial Officer\nThank you, Ark, and good morning, everyone. Before covering our Q4 results, I wanted to remind everyone that in addition to our customary non-GAAP adjustments, expenditures related to EPAM's humanitarian commitment to Ukraine, the exit of our Russian operations, and costs associated with accelerated employee relocations have been excluded from non-GAAP financial results. We have included additional disclosures specific to these and other related items in our Q4 earnings release. In the fourth quarter, EPAM delivered solid results.\nThe company generated revenues of" ]

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[ " 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" ]

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[ "ons in memory.\nWe also secured an advanced dielectric position with a major logic producer And then a bunch of pad opportunities that were able to be secured as well, including some consumable sets. So what we're seeing is not only a strong overall growth environment, but we're also winning new opportunities that, obviously, they ramp up or different trajectories over time. But I think the end state will be increased participation for us, as we've talked about. And so we're really pleased with CMP. One thing I'd note is that I think there's a lot of industry growth numbers that are being talked about probably in the kind of mid- to high single-digit range for the industry as everything is running pretty full. I'd say when you think about CMP, different parts of that semiconductor market are going to grow at different rates. We think CMP is probably growing at mid-single digits. So that gives you a proxy about how well we're doing in that area. I think we've outpaced CMP for a while now, and we continue to have plans to do so.\nSo that gives you a little bit of background on slurries and pads. On the EC side, yes, it's a different business for us. Obviously, it's a lot more regional. We participate in North America, Europe and a bit in Southeast Asia. Those markets are doing OK. But I think of EC as more of a solid growth business. It's not going to be as dynamic. It is a little bit more transient at least at the time -- since we've had it, under our portfolio. I would say that we're making some investments to improve our quality, to improve the technology of our offering and the supply chain. And I think that's going to further differentiate us from the other participants in that EC market. The other thing I would note is that a lot of the recent capacity expansions are in the U.S., particularly like TSMC and Intel. And so that should offer us additional growth opportunities for EC. But the growth trajectories are different for those different parts of our business.\nToshiya Hari -- Goldman Sachs Group, Inc -- Analyst\n", "Got it. That's super helpful. And then as a quick follow-up on the PM side. You guys booked a $280 million goodwill impairment charge. And I think in the prepared script, you talked about a lower-than-anticipated recovery post the pandemic and an increase in raw material costs. If you can kind of elaborate on those two points, what's changed over the past three months? And perhaps more importantly, post this writedown, Dave, how would you characterize the importance of the DRA business within the context of your overall portfolio?\nScott D. Beamer -- Vice President and Chief Financial Officer\nYes. So Toshiya, I'll start. Yes, you listed the two items that we mentioned in our materials. And I think as the raw material cost in the near to midterm, that's a supply demand issue in the marketplace. We won't be too specific about any particular material. But of course, you can expect us to work to manage that. So it doesn't have a significant impact in that over our rest of the year for our business. And any impact of that is included in the guidance that we increased both the top and the bottom end of that range. As we think about the lower than initially expected recovery, I think the accounting nuance aspect of this is important.\nAnd you think about the strategic objectives of our business, which we are -- the team is working on may include things like continuing to develop our R&D portfolio, addressing some market adjacencies and other wind capture in the marketplace. We expect to get this business to a better level in the future. However, those sort of strategic objectives You're really not able to count much of those or perhaps any of those in the accounting model test. So we know this is a business that's been impacted by the pandemic. That is the big driver as we look forward in our future expectations of the business, That base business is challenged. That's going to be a lower type of recovery, but we expect that we're going to deliver on strategic objectives to get this business to a different place. But " ]

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[ "investments in areas with strong growth opportunities such as personal safety, home improvement and healthcare with continued emphasis on our priority growth platforms. The rapid movement to an even more digital-first world also opens additional opportunities for 3M. We are pioneering innovations that improve performance of data centers and semiconductor manufacturing, which will be more relevant moving forward. We will also do more to leverage e-commerce, along with digital technologies to better serve our customers.\nUltimately, we have big opportunities to unleash 3M Science and drive sustainable long-term growth, and we will ensure that our teams have the resources to capitalize. We continue to advance the digitization of 3M while also accelerating our use of data and analytics in everything we do. Further strengthening our supply chain is a priority in 2021 with a focus on highly sustainable, disruptive and safe manufacturing technology, which will help us deliver on our promises to customers and shareholders. To that end, I want to close by talking about the commitments we will keep in 2021 and beyond: Leading our industry in science, society and sustainability.\n3M Science drives our business forward. We leverage and combine our technologies in unique ways across the company, creating new products and new lines of business, and we are positioned to do even more to deliver differentiated value for our customers into the future. In a similar way, 3M is partnering with our communities to improve society. In 2020, we took steps to advance our core values, including diversity, equity and inclusion.\nAnd in the coming year, we will hold ourselves accountable to new goals to support underrepresented groups at 3M, building on our recent progress. We will also be releasing a new global diversity, equity and inclusion report with details on our metrics. We remain committed to sustainability, which includes using science to proactively manage PFAS and to enable success in our ongoing work with communities and governments to advance our environmental stewardship. We will continue to increase investments to make our factories more sustainable, including $100 million in investments this year, which is included in our 2021 capex guidance, to further reduce water usage and improve water quality around our manufacturing sites.\n", "To help address questions you have been asking, I would also like to touch on our strong history of working with governments and leveraging science to solve big challenges around the world. We have had productive conversations with President Biden's transition team and now the administration about their COVID-19 response, and we have open lines of communication. We will continue to do all we can to get respirators and other personal protective equipment to frontline workers and help America and the world beat the pandemic. On environmental stewardship, we share a common goal with governments of improving water quality and doing so in a way that is based on sound science, established regulatory processes and collaboration with a broad range of stakeholders.\nWe look forward to working with President Biden's administration and congressional leaders to pursue these shared goals, including through the remediation of PFAS, where appropriate. And we aim to build on the successful public-private partnerships that 3M has led globally throughout our history as a company. To wrap up, we are confident about what's ahead in 2021 and in our ability to create more value from the 3M model and build an even more competitive and sustainable enterprise. I will now turn the call over to Monish to cover the details of our guidance.\nMonish?\nMonish Patolawala -- Chief Financial Officer\nThanks, Mike. Please turn to Slide 13. As Mike mentioned, we are initiating full-year 2021 guidance as end-market visibility has continued to improve despite ongoing macroeconomic uncertainty. As a result, we will no longer be reporting monthly sales updates as we had in 2020.\nLooking at sales. We are forecasting total sales growth of 5 to 8%, with org" ]

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[ "on. I think that's really where we'll be a bigger impact than a particular geography ramping up in a given quarter.\nBut Jean, any thoughts on that to add?\nJean Hu -- Chief Financial Officer\nYeah. Matt, to just add to what you just said is this year, we have seen significant growth, and the run rate is already over $600 million now. And that's actually largely benefited by North America, right? And the North American adoption of 5G has been really strong this year. Going forward, India definitely maybe next year or beyond.\nBut Matt is right, is our 5G business will continue to be a very significant growth driver next year for us. It has a really long product cycle and the visibility actually is pretty good in this market.\nSrini Pajjuri -- SMBC Nikko Securities -- Analyst\nGot it. Thanks, Jean. Thanks, Matt.\nOperator\nThe next question comes from Harsh Kumar with Piper Sandler. Please go ahead.\nHarsh Kumar -- Piper Sandler -- Analyst\nYeah. Hey, Matt, I had a question for you. So if I layer in your thoughts on the $400 million odd of custom cloud silicon, that's about 15% growth by itself to your cloud business. And then I assume your business will grow at least that much, if not more, organically.\nSo is it fair for us to think for January 2024 for that data center business to be somewhere in the 30-something odd percent range or even better than that? Yeah.\nMatt Murphy -- President and Chief Executive Officer\nYeah, I think I'd have to probably get out a spreadsheet to go figure that one out, Harsh. But I think directionally, I think you're right in that. You have an estimate of what our cloud revenues are and certainly layering in the $400 million would get you to a certain number. And then you're absolutely right, what I didn't bring up is that the base business, right, which doesn't include the new wins is also ramping up.\n", "So we haven't sized that piece of it exactly, but clearly, that's going to grow as well next year, the kind of existing run rate portfolio because some of those programs whether it's in cloud switching, whether it's in electro-optics, some of the things we've already talked about today that are already in the run rate are certainly going to grow. So yeah, I think that's -- I think from there, you'll have to kind of -- I think when you say 2024, I got a -- I don't know that exact number off the top of my head, so.\nHarsh Kumar -- Piper Sandler -- Analyst\nNo, very helpful. Thank you, Matt. Appreciate it.\nMatt Murphy -- President and Chief Executive Officer\nYeah.\nOperator\nThe next question comes from Quinn Bolton with Needham. Please go ahead.\nQuinn Bolton -- Needham and Company -- Analyst\nHey, Matt. I wanted to follow up on Matt Ramsay's question on enterprise networking. If I look at the business in the October quarter, it looks like you'll be over $400 million, and that's up probably two and a half times over two years. So phenomenal growth, but clearly well ahead of the market.\nI know some of that is content gains, some of its market share. But if you look at inventory in the networking space, OEM inventory levels are probably up 2x over that two-year period. And so, do you guys have any way of knowing whether there's any inventory that's accumulated in that channel? Do you think you can sort of sustain this $400 million quarterly run rate into next year? Or do you think you may see some ebb and flows especially after a very strong October levels looking beyond October?\nMatt Murphy -- President and Chief Executive Officer\nYeah. OK, Quinn, it's a great question. And certainly, we're very aware of kind of the broader inventory growth that's gone on in a number of the end markets that we serve. And this one, in particular, I think a couple of things give us a lot of comfort.\nThe first is we've still been ramping into some of these new designs. So they're not -- it's not business we had two years ago and it was at x run rate, and now it's at x times two run rate. I mean almost all of this is effectively new programs that have ramped up. I guess the silver lining is on the supply constraint so far is that we " ]

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[ "ou look out, say, three to five years. So can you just kind of talk about what's happening in logic?\nGary Dickerson -- President and Chief Executive Officer\nThanks for the question, Tim. So what I would say, I meet these CEOs and R&D leaders for leading foundry and logic on a very regular basis, actually more often now than I did before the pandemic because we're doing all of this virtual. I deeply believe -- and you can see even this week, there was one of our leading customers talking about how they're driving their technology road maps going forward. And it's really around the five elements that we've been talking about: the new structures; new chip architectures; everybody is designing their own application-specific chips; new materials; new ways to shrink.\nI've talked about packaging and the growth there, but I think we're just in a tremendous position. And when you think about what's going to drive power performance and cost going forward, there's no question, it's about these new structures and these new materials. And when you look at really all of the different markets, you talked about the new transistor structures going forward, whether -- people call gate-all-around or nano sheets or also the wiring, the resistance in the wiring, there's tremendous focus in those areas because that is really what enables power and performance going forward. So we're just in a really tremendous position.\nWhen you think about the materials that are needed to create those nano sheets or the wiring or 3D DRAM or any of those big inflections that are going forward in the future, we just have, by far, the best portfolio of materials that creates those structures. Then you think about shaping the structures. We have strength in conductor etch. We're -- we've certainly had a strong position in memory.\nWe're growing in foundry/logic. You'll see our share continue to grow there. Shaping with the Selectra product is also really important for nano sheets and for other new structures, the modification of those different structures and also accelerating the time to market. I talked about the synergies with our PDC and especially our e-beam business.\n", "When I'm building this new transistor, if I can see the materials -- residual materials inside that structure as I'm driving the R&D versus having to cross-section one particular transistor and look inside that, their learning rates go up by orders of magnitude. So those unique imaging capabilities, combined with the unique capabilities in creating and shaping and modifying those structures, again, I just -- if you look at what's being presented by our leading customers, even this week, you'll see exactly aligns to this new playbook and enabling capabilities for Applied. So again, I've never been more excited about our opportunities to enable the road map.\nOperator\nThank you. Our next question comes from the line of Joe Quatrochi with Wells Fargo. Your line is now open.\nJoe Quatrochi -- Wells Fargo Securities -- Analsyt\nYeah. Thanks for taking the question. I was curious in your WFE outlook for this year, what's your assumption around domestic China? And does your WFE outlook for this year include the assumption that we don't see any license from customers that are required by the government right now?\nDan Durn -- Chief Financial Officer\nYeah. Joe, thanks for your question. So from a domestic China standpoint, we think we ended the year 2020 around $10 billion. We think we're up a few billion off of that level.\nSo we'll see this year what we've been seeing for several years now, which is slow, steady ecosystem development. You're going to see some investment in technology road maps and still some pretty modest capacity additions that sit behind those technology road maps. And then from a licensing standpoint, just given where we sit in the process, we think it's prudent to forecast and guide revenue and market sizing, assuming the licenses do not come through. And when we receive the licenses, then we'll adjust the expectations.\nI would expect revenue to go up, and I would expect the market siz" ]

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[ "BEIJING, China (CNN) -- Senior North Korean officials say the communist regime has \"weaponized\" its stockpile of plutonium, according to a U.S. scholar, in a move suggesting that North Korea may have significantly hardened its stance on nuclear negotiations. Selig Harrison said North Korean officials claimed to have enough plutonium for four or five warheads. Selig Harrison, one of the few U.S. scholars granted access to senior North Korean officials, said at a news conference in Beijing that the officials told him they had weaponized 30.8 kilograms of plutonium, enough for four or five warheads. The director of the Asia Program at the Center for International Policy, who just returned from a five-day visit to Pyongyang, said senior North Korean officials told him the warheads will not be open for inspection. If it is true, the news portends a gloomy outlook for the future of the six-party talks that began in 2003 with the goal of getting North Korea to end its nuclear program. \"It does change the game,\" Harrison said. South Korea, the United States, Japan, China and Russia are participating in the talks. A 2007 agreement calls for scrapping nuclear weapons on the Korean peninsula in return for energy aid to the North, normalized relations between the North and the United States and Japan, and a formal peace pact. Watch a report on North Korea's nuclear negotiations » The North Koreans told Harrison they want the rest of the fuel aid that Japan has promised them. North Korea had agreed to disable the reactor that had produced plutonium for nuclear weapons. But the United States and its allies have asked it to give up the plutonium it already has, an estimated 30 kilograms, as well as details of any other bomb-producing programs. Harrison said one possible reason for Pyongyang's tough new stance could be the declining health of leader Kim Jong Il, who reportedly suffered a stroke last year and may no longer be involved in day-to-day decisions. \"People I talked to have many indications that some important things are submitted to him, but he is not working in the way he used to,\" Harrison said. He said military hard-liners have taken the lead in demanding from the United States a full declaration and verification of all nuclear weapons sent to South Korea between 1957 and 1991. The hard-liners also seek full normalization of relations with Washington before more talks about scrapping their nuclear arsenal. On Tuesday, during her Senate confirmation hearing for the secretary of state position, Sen. ", "Hillary Clinton made it clear: de-nuclearization first, then diplomatic normalization. President-elect Barack Obama has stated his willingness to talk to the North Korean leader. Harrison also said the North demanded the completion of the light-water reactors as compensation for the dismantling of the Yongbyon nuclear reactor. The light-water reactor, which is not capable of producing weapons-grade plutonium, was promised to North Korea in the early 1990s for the North giving up its nuclear weapons. Its construction has been suspended. North Korea has long considered its nuclear program integral to its national security. North Korea tested a nuclear weapon in 2006. In June, it acknowledged producing about 40 kilograms of enriched plutonium. CNN's John Vause contributed to this report." ]

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

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[ "nvesting.  We launched two low-carbon transition readiness ETFs last week, raising a total of nearly $2 billion, representing the largest ETF launch in U.S. history. Traditionally, climate products have been backward-looking, really focused on reported greenhouse gas emissions.\nUsing advanced data and analytics and research driven by insights, BlackRock developed a forward-looking active climate investment strategy in a transparent active ETF vehicle.  These active ETFs are the first of their kind and a great example of how BlackRock is innovating to expand access to sustainable strategies for more investors worldwide.  In total, BlackRock manages $353 billion in sustainable investments, including cash, and we believe this category will grow to more than $1 trillion by 2030. Sustainable investing presents opportunities for BlackRock, not only in terms of AUM growth, but in the demand for industry-leading technology and data. As sustainability becomes a critical building block in portfolios, investors need a clear understanding of how sustainable-related risk and opportunities impact their portfolio.  One of the newest opportunities for BlackRock is powering portfolios to a new sustainable standard with Aladdin because climate risk is investment risk. Our ambition to make Aladdin climb as the standard for assessing this risk with investors' portfolio and helping clients navigate and capture investment opportunity presented by the transition to a net zero economy.  Investments we have made in Aladdin over the years is to serve more clients with better risk analytics, end-to-end operating systems, and the benefit of scale drove a 12% year-over-year growth in technology services revenues.  We consistently hear from clients that poor quality or availability of ESG data and analytics is the biggest barrier to deeper and broader implementation of sustainable investing.\nThat is why we're evolving Aladdin's sustainability to help clients better assess their exposures and their positions across all our portfolios.  Our minority investment in Clarity AI will integrate analytics and data covering 30,000 companies and nearly 200 companies within Aladdin. And our partnership with RepRisk will give clients the ability to identify ESG risk exposures in private investments and create a holistic view of risk across their portfolios.  Advancing toward a net zero economy by 2050 will require more than better data and analytics. It will require transformational innovation in carbon reduction and elimination -- eliminating technologies. BlackRock has partnered with Temasek to establish decarbonization partners to invest in innovative decarbonization solutions to help accelerate global efforts.\n", "This initiative will provide clients with an opportunity to participate in a net zero transition by complementing BlackRock's existing renewable power and energy infrastructure investment platform.  In line with our strategic focus on technology and sustainability, we nominated Hans Vestberg, chairman and CEO of Verizon, to our board of directors for his deep experience in international markets, technology and sustainability.  At the same time, I want to thank Mathis Cabiallavetta for his passion and his dedication to BlackRock and its shareholders over the last 13 years. He will not stand for reelection at BlackRock's annual meeting next month, and he will be missed by our entire board and by me and the entire leadership team at BlackRock.  Our results and the speed of our forward momentum underscores the importance of BlackRock's fiduciary approach and culture. I truly believe our culture is what sets BlackRock apart. It drives our performance.\nIt pushes us to innovate. It pushes us to stay ahead of our clients' needs. And it guides our decisions, and it guides our behaviors.  Critical to our culture is building an environment of inclusivity, belonging, trust and creating a safe environment. More than ever before, BlackRock's leadership team and I are focused on instilling this culture with all of our 16,700 employees around the world and evolving it " ]

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[ "raditional incumbent VPNs. We will work with larger enterprise customers to help them mak the switch from legacy VPNs to faster, more reliable and cost-efficient SD-WAN-based solutions. We have seen the substantial benefits of migrating to the cloud inside our own business. So we fully understand the speed and productivity advantages that are possible. In addition, we will leverage strategic partnerships to ensure we move quickly with best-in-class solutions as seen with IBM on cloud solutions and AWS with edge cloud services. We are only at the beginning of fully understanding and deploying the potential of IoT across industry sectors. We already have a leading position in the automotive sector, in which, over 30 million cars are connected by Vodafone through our global leading platform that now has over 100 million connections.\nWe are now coupling our IoT expertise with 5G to offer mobile private networks. We are targeting 30 large-scale customer pilots across three industry verticals this year. We firmly believe that a greater focus on these emerging technologies will enable us to increase our share of the value chain in which we operate. Over the past two years, we have delivered a significant shift in our cost base and productivity through targeted deployment of digital technology. At our open office event in September last year, we showcased a number of advancements we are making to be the industry leader in this area, emphasizing at the time that this was a fundamental transformation of our operating model and not just cost cutting. This provides an important platform to make a step change in our ambition, driven by behavioral changes experienced over the last few months.\n", "Within customer management, we've delivered a 20% reduction in the number of calls over the last two years through initiatives, including the deployment of our AI assistant TOBi. We've also further optimized our branded retail store footprint with a decrease of 9% so far. In digital operations, we are now processing 80% of our payments in a touchless way. Through these activities and many more, we believe we will enhance the customer experience, improve customer loyalty, sell more services and ultimately deliver more cost savings. Our new cost target, which Margherita covered, means we will be taking out over EUR1.8 billion from our FY '18 starting point, a 20% structural reduction in our opex over five years. Over the last 18 months, we've executed a series of agreements across our markets to enable a mix of active and passive sharing of mobile network infrastructure. You will see from the map this supports our strong 4G coverage already established across our markets. During the year, we reached agreements in Germany with DT, TI in Italy, with all MNOs in the UK for enhanced rural coverage and extended the scope with Orange in Spain and O2 in the UK.\nComplementing our strong mobile coverage through a mix of direct cable and fiber ownership alongside strategic wholesale deals and regulatory access, we can market NGN broadband services to over 136 million homes across our markets in Europe. In addition, we are rapidly rolling out DOCSIS 3.1 across our cable networks, serving 32 million households with gigabit speeds on our own infrastructure, an increase from 24 million at H1. We're targeting to upgrade most of our 54 million NGN homes passed by 2023.\nI'd like to take a moment to reflect on the pace and sheer breadth of portfolio activity we've executed in the last 12 months. One of the most important transactions we completed during the year was the merger of our towers in Italy with INWIT, as they allowed us to engage with the European Commission to establish the right principles for network sharing in Europe. As you see from the chart, there has been a range of models discussed and we believe that a national passive share with active sharing outside of major cities remains the optimal target sites, providing a quicker, more optimal way to improve coverage and speeds, while allowing us to drive industrial synergies.\nIn return for our towers, we" ]

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[ "s for early 5G R&D is a positive indicator for the automated validation and automated production applications that follow-in 2020 and beyond. Over the past 12 months, we have already seen a significant uptick in chip-makers building out sub 6-gigahertz production capacity, especially for 5G infrastructure equipment and this remains a growth driver for our overall semiconductor business.\nWhile the deployment timing for millimeter wave 5G is on a different timeline in sub 6-gigahertz, we are currently shipping millimeter wave test systems for both validation and production test. So far, millimeter wave 5G deployments have been limited in scope and the cycle of automated validation and production test equipment has been somewhat delayed due to Huawei restrictions and Intel's exit from the 5G modem business and subsequent sale to Apple.\nWe believe these market conditions will dictate the pace at which market volume of millimeter wave 5G production test increases. Lead customers are already using our millimeter wave vector signal transceiver released in May 2019 and the reception of this product has been very strong. In transportation, we saw orders decline in Q3 below double-digit year-over-year.\nWe continue to see strong growth in our business in the areas of electrification, active safety and autonomy, while the rest of the transportation business reflects the weakness of the broader market. Our focus remains on mitigating these market weaknesses and continuing to aggressively invest in the areas of high growth in order to increase the proportion of our business in those applications.\nOur aerospace, defense and government orders grew low single-digits year-over-year in Q3. Our platform continues to add significant value to this industry which benefits from our software-connected approach and the ability to help our customers control their proprietary IP and meet their needs for highly customized and long life cycle systems. The cycles of this industry tend to run counter to the overall industrial economy as the spending environment this year has remained positive.\nWith respect to our broad portfolio of customers in all other industries, which represents nearly half of our business, orders were down low single-digit year-over-year in Q3, compared to a very strong Q3 of 2018. Historically, this part of our business has been the most correlated to the PMI. Through the first three quarters of 2019, this part of our business has been experiencing the headwind of the weakness in the industrial economy, which we believe has begun to stabilize.\n", "Strength in customer adoption of our software across all industries continued in the third quarter with orders up 6% year-over-year and strong growth in enterprise agreements up 14% year-over-year. We believe these results are positive indicators of future revenue growth potential and opportunities for our software-connected platform. In summary, we remain committed to our R&D investment, confident in our long-term strategy and believe we are in a strong position to take advantage of future growth opportunities.\nNow, I'd like to turn it over to Karen Rapp, our Chief Financial Officer for the financial update.\nKaren Rapp -- Chief Financial Officer and Treasurer\nThanks, Eric and congratulations. Our revenue in Q3 came in at the midpoint of our guidance at $340 million. Our earnings performance stayed strong in Q3 and we delivered $0.44 non-GAAP earnings per share, slightly ahead of the midpoint of our guidance. We are proud of our operational efficiencies and variable pay alignment to performance that helped structurally scale our profitability.\nAs Eric mentioned, our year-over-year bookings were down 5% in Q3 as compared to a strong quarter in Q3 2018, where we reported year-over-year bookings growth of 13%. Orders over $20,000 were down 4% year-over-year and orders under $20,000 were down 6% year-over-year. Compared to Q3 2017, orders over $20,000 were up 13% and orders under $20,000 were down 2%.\nIn Q3, revenue was down 2% in total year-over-year. By region in US dollar terms, revenue was " ]

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[ "ing to completely abandon that and just see all of our growth come from digital. We think we can have tremendously outsized growth in digital.\nAlso, we're very-very excited about what continues to be the opportunities in China. And the opportunities in China are both digital and brick and mortar. So, we see that growth really outstripping some of our prior growth. And so, again, not to get too ahead of our skis, but we are excited about the opportunity ahead of us. As soon as you can tell me when the world returns to normal, I can tell you exactly when we'll see that massive inflection.\nJoanne Crevoiserat -- interim Chief Executive Officer\nAnd I'll just add to that, Mark. Through all brands, we're focused on the digital business and for an inflection in top and bottom line growth. As the environment and backdrop recovers, we're positioning our company to be able to take advantage of that.\nAnd as Andrea pointed out, our digital margins are ahead of our margins in brick and mortar. We do see that as an accretive strategy for us. But again, our focus is on meeting the consumer where they are and responding and being available with the right experience and showing that we can drive further profitability moving forward. And we have confidence that the strategy helps us unlock that.\nOperator\nOur next question comes from the line of Jamie Merriman of Bernstein.\nJamie Merriman -- Bernstein -- Analyst\nThanks very much. With respect to your digital growth ambitions and the shift to really being much more data focused, can you just talk a little bit about how you're able to leverage your existing customer file or are there investments that you need to make in terms of being able to really tap into that data-driven decision making process still ahead? Thanks.\nJoanne Crevoiserat -- interim Chief Executive Officer\nSure. I can kick that off and then maybe couple of the brands can provide some anecdotes. But we're well positioned to take advantage of the shift to digital. We have a pretty robust technology infrastructure and digital capabilities globally. But we are continuing to invest in that space, particularly with our customer file being able to add tools that allow us to better utilize and better use the information that we do have. So, those investments we are making this year and we expect to continue to make them going forward.\n", "But a few anecdotes in terms of our ability to leverage that and drive both digital growth as well as profitability. I'll start with the traction we're seeing in new customer acquisition and some of the changes that we've made in our marketing process. We have embedded data and analytics more fully into our marketing operations and enabled those teams to really drive a test and learn mindset and test a lot of new things. I think we managed over 50 tests in the fourth quarter alone through that platform and we're learning a lot.\nIt's interesting because this test and learn platform allows us to learn new information really that we didn't have before about how our customers respond and some of those things work, some of them don't. We learnt fast, which is part of the agility. We're learning fast and we're scaling the wins. And we saw, again, a lot of traction in the fourth quarter behind that. Really pleased with the new customer acquisition. And the engagement of lapsed customers, so we are seeing traction there.\nAnd then as it as it relates to being data-driven, I talked a little bit in my prepared remarks about some of the assortment analytics we're using to determine the right assortments at a door level. Again, unlocking more productivity out of our assortments, more productivity in our stores, and that's really a key enabler to driving AUR growth and gross margin.\nAnd I don't know -- Liz, if you want to talk about some of the traction you've had in the marketing -- on the marketing side with the Kate brand, but some real traction there as well.\nLiz Fraser -- Chief Executive Officer & Brand President, Kate Spade\nYes. Thanks, Joanne. I mean, absolutely the platform that we have from the Tapestry data " ]

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[ " taking advantage of the strong growth in the business to be able to lean in and position Amex even better for the next sort of three to five years?\nSteve Squeri -- Chairman and Chief Executive Officer\nYes. Well, I mean, we're always making -- there's always the balance between long-term investments and short-term investments. And we don't talk a lot about the long-term investments until they actually happen. But you have to invest in your technology, and we've done that.\nAnd I've talked about that before because we've been one of the only companies that have said, we're not taking step function changes in our technology investment because we've been investing in technology all along. We're constantly investing in value proposition. And when people look at that, and we sit here on the phone here and we talk about it, like, OK, so what are you going to do to the Platinum card? Well, it's not the Platinum card. It's the 29 proprietary countries that we operate in, the small business cards that we operate in those countries and the corporate cards we operate in those countries and the co-brand cards we operate in those countries and the personal cards, green gold, Platinum.\nAnd so we're constantly investing, and I think we use the Platinum Card in the U.S. either business or personal as a proxy for our overall investment, and that's not it, because we're investing in all our card products across the globe on an ongoing basis. You can't have product refreshes by just snapping your fingers and saying, hey, we're going to have a product refresh. This is months and months and months in the making and negotiations and partnerships and so forth.\nBut look, we continue to invest in our lounge program. We continue to look at those things that add more value. I mean you've seen the expansion of things that we've done, whether it's checking accounts and debit cards for our consumers and our small businesses. And what we're trying to do is to create more stickiness and more reason to interact with American Express on an ongoing basis.\n", "I mean just look at sort of how the services around our card products have evolved over the last few years, whether that be from a small business perspective where we can meet a wide variety of reworking capital needs, banking needs, and so forth, and then look at it from a consumer perspective and look at what we've done with resi, with over 30 million registered users on resi, and we have cards on file, a huge acquisition. So we'll continue to make those longer-term investments, but you'll continue to hear about them as they happen.\nOperator\nThe next question is coming from Moshe Orenbuch of Credit Suisse. Please go ahead.\nMoshe Orenbuch -- Credit Suisse -- Analyst\nGreat. Thanks. And, Steve, certainly note your comments that you're not anticipating a recession in the next couple of quarters given what you're seeing in your customer base. But could you just talk conceptually about how you think about account acquisition in terms of kind of new accounts, a high level of new accounts? Obviously, industry as a whole is still doing that.\nBut clearly, less seasoned accounts are the ones that always would carry somewhat more risk. And maybe talk about the things you do to kind of mitigate that or steps you would take if you saw that and the rates start to rise?\nJeff Campbell -- Chief Financial Officer\nWell, let me maybe start, Moshe, by just reminding everyone of the highly analytical process we have for determining who we bring into membership in the franchise. And it's based on searching for that premium customer, whether they are a consumer or a small business. It's based on the vast amounts of data and history we have. And it's based on having very high financial cutoffs for who we allow into the franchise or not.\nAnd when you look at the outcome of that process right now, we are on average bringing in new customers who have higher credit qualities than when we saw pre-pandemic in 2019, who are showing much higher spending profiles and who are also carrying balances at a greater rate. So we feel really goo" ]

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

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[ "The Atlanta lawyer with tuberculosis who caused an international health scare after traveling to Europe and back underwent surgery Tuesday to remove the diseased portion of one of his lungs. TB patient Andrew Speaker set off an international health scare when he traveled to Europe for his wedding in May. Andrew Speaker, 31, had the roughly two-hour operation to remove the upper lobe of his right lung at the University of Colorado Hospital. He's been under treatment at National Jewish Medical and Research Center in Denver since the end of May. CNN's Dr. Sanjay Gupta, who observed the surgery for about an hour, explained that the unusual procedure consisted of inserting a video camera in a tube in one small incision in the right side of Speaker's chest, and putting instruments through another incision. When the infected portion of the lung was cut out, it was placed inside a bag while still inside the attorney's chest cavity and the bag was sealed inside a tube before being removed. The main reason for sealing the infected tissue was to prevent it from re-infecting Speaker as it was removed, Gupta said after the operation. Doctors also wanted to make sure they didn't \"release any of that tuberculosis bacteria into the operating room, into the rest of the hospital,\" Gupta said before the surgery on CNN's \"American Morning.\" Watch Andrew Speaker discuss his reasons for having surgery with CNN's Dr. Sanjay Gupta » Doctors said the operation went well and there was not much bleeding, Gupta said. The portion of the lung that was removed showed the effects of the disease, Gupta said. \"A regular lung is very pink with a smooth, glistening surface,\" he said. \"This had a lot of bumps on it, and the areas that were diseased were very dark with white nodules.\" Speaker will most likely recover at the University of Colorado Hospital for another couple of days, and will return to National Jewish Medical and Research Center in Denver to finish his antibiotic course. He will still have to continue taking the medications prescribed by his doctors to fight the tuberculosis until cultures taken from him are negative for tuberculosis bacteria for eight weeks. At that point, he will be considered non-infectious, but he will still be monitored by health care professionals. Speaker said it was his decision to have the surgery, which is just one of his treatment options. ", "\"With the amount of treatment I'm going to be on, the doctors said if you go ahead and have this surgery, you don't have to worry 10 years from now, or 20 years from now, or 30 years from now if it's ever going to come back, so it's worth the peace of mind to me,\" the attorney said. Speaker was originally found to have an extremely drug resistant strain (XDR-TB) of the respiratory disease earlier this year, but on July 3 doctors said he had multi-drug resistant tuberculosis (MDR-TB), which is treatable with less toxic drugs. Speaker and his fiancee had gone to Europe on May 12 for their wedding in Greece, despite warnings from the Fulton County Health Department in Georgia that he should not fly because he risked infecting fellow passengers. Since then, eight people who shared a flight with Speaker have filed a lawsuit against him, seeking $1.3 million in damages. Rosalind Yee -- an attorney for the plaintiffs who said her clients include a ninth person related to one of the passengers but who was not on the flight -- said all eight passengers have undergone TB tests since they returned home. One of them, a 72-year-old man, tested positive for TB on a skin test, though it was not clear that Speaker was the source. The man's X-rays were normal, she said, and he is awaiting results of further tests. In the past year, there have been about 124 cases of MDR-TB in the United States. About half of those patients have elected to undergo the surgery to remove the diseased portion of" ]

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[ " n77, n79, unique products there that are incremental that you wouldn't see in a 4G phone but there'd be incremental dollars that would lay into a 5G phone. And the other point that we've been making here is and as you know, the more complexity that you have, the more devices that we have physically we've got to deal with size, we've got to deal with competition for current consumption, coexistence and all the challenges that you get when you put more and more semiconductors together. So our approach with that is to offer that customer the Sky5 platform and configured in such a way that some of those challenges that one would have in putting together a complex device can be resolved with Skyworks overlaying that into a platform solution. But the incremental content is in it's UHP, it's n77, n79, there's more bands coming out over time, but we're in really good position to capitalize as 5G continues to roll out.\nEdward Snyder -- Charter Equity Research -- Analyst\nYeah. And you've done really well there. So as a separate part of that then, let's talk about the 4G, if we could [Phonetic] for a while. China went the phase six last year. As we all know Qorvo took a lot of that because there's a lot of nervousness on the OEM's part about going to a fully integrated front-end. So they wanted one guy.\nWe've got feedback that that's starting to change now and that Skyworks is starting to carve out the traditional low band part of that platform. Are you seeing that to any material extent? And then and the larger question, how do you -- I know your BAW filter program is coming along very well. You've got -- some received the devices now and they are going to have duplexers, but that seems to be a long way from being able to offer the kind of performance that you have to offer to actually capture the mid and high bands too. Is there path to that, mid high band portion of the 4G section of these phones over the next year or so or is it going to be something further out?\nLiam K. Griffin -- President and Chief Executive Officer\n", "Yeah, yeah. So let me try to capture both. So on the MediaTek side, when you get into the lower band opportunities, there is a tremendous amount of Skyworks opportunities with low band pad, with DSM et cetera. So that's the 4G space. When you go to the ultra high band or mid and high band solutions, we recognize that's a challenge, but we're on pace right now to address it. We've done some good work with some UHP opportunities. We do recognize the performance merits with some of the leading players in mid and high band and we aspire to get there. We're doing the work internally, but we understand that it is going to be a task, it's going to be a challenge, but we have the expertise -- growing expertise, engagement with customers. The facilities are important. We've got some facilities here and fab position that will help us, but yeah we're on the path to achieving the highest grade, but we still have a lot of work to do, quite frankly.\nOperator\nAnd your next question comes from the line of Craig Ellis from B. Riley FBR. Your line is open.\nCraig Ellis -- B. Riley FBR -- Analyst\nYeah, thanks for taking the question. Congratulations on the good execution, guys. Liam, I wanted to follow up on that last question and maybe tied into one that Vivek answered, really focused on longer-term dynamic. So Skyworks is historically working with customers 18 months out of the handset launch on new products. So from the vantage point that you have now what does content gain look like in the funnel for things that we'll be launching in calendar 21 versus the early content gain that you're getting in your one of 5Gs. Is it flat? Is it up? If it's up, to what extent would it be up next year as you continue to try and flex into things like mid-band or high-band pads with your BAW capability?\nLiam K. Griffin -- President and Chief Executive Officer\nSure, sure. So let me just be really clear about one thing. The technologies that we have right now -- we don't have everything, but the technologies that we have right now in 4G and the n" ]

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[ "Even among the hundreds of applications, this one stood out. Most applicants to creative writing programs submit stories about the angst of their suburban childhoods. This writer's stories concerned the daily ordeals of a boy living with his family on the streets of Nairobi, Kenya, and the horrific plight of a Rwandan girl whose mother is Tutsi and father Hutu. Not only did the applicant have what writers call \"material,\" he was blessed with an uncanny ear for human speech and the poetry to describe his characters' very unpoetic lives. I can still remember the young Kenyan boy watching his mother decant the glue she intends to sniff. The glue, the boy tells us, \"glowed warm and yellow in the dull light,\" and when his mother had poured enough, \"she cut the flow of the glue by tilting the tin up. The last stream of gum entering the bottle weakened and braided itself before tapering in midair like an icicle.\" Still, this applicant gave us pause. The writer had so much to say, he seemed to be trying to channel a raging waterfall through the tiny funnels of two short stories. His use of punctuation was idiosyncratic, to say the least. And the applicant was a priest! Would the other students be willing to share their stories, rife as these tend to be with profanity, drugs and sex, if a clergyman was in the room? And would this particular clergyman understand what all great religious writers know -- that true literature doesn't spring from one's certainties about the universe, but rather from one's questions? That said, how could our students be inhibited by a classmate who didn't hesitate to describe a 12-year-old Kenyan prostitute being paid by rich white tourists to perform sexual acts with their monkey? As to the shapelessness of the applicant's prose and the eccentricity of his punctuation, anyone with this writer's gifts could be taught to structure his material and punctuate his characters' speech correctly. If I still felt apprehensive about having a priest in my workshop, that anxiety vanished when Uwem Akpan walked in the room. Rather than wear his clerical garb and collar, Uwem showed up in a blue and maize University of Michigan sweatshirt. With his wide, gap-toothed smile, wall-shaking laugh, disarming candor and gleeful giggle, he exuded magnetic charm. ", "Nor was Uwem out of place for being the only Nigerian in his cohort. Despite what the judges of the Nobel Prize might say about American writers being too insular to compete with their European counterparts, this country's MFA programs provide one of the only spaces on the planet where writers of many races, religions, nationalities and sexual orientations can come together. Writers find common ground not through the homelands they once inhabited but the thematic questions with which they grapple. Early that first semester, I assigned a story by Philip Roth called \"Defender of the Faith,\" in which a Jewish sergeant who has witnessed the horrors of the concentration camps must decide whether to grant special favors to the Jewish recruits in his command or enforce strict impartiality. I didn't know whether Uwem would connect to Roth's quintessentially Jewish outlook. But the moment the discussion started, Uwem's hand shot up. \"This is the story of my continent!\" he declared. If Africans continued to put tribal allegiances above universal fairness, Uwem said, progress would remain unattainable. This abhorrence of tribalism is what makes Uwem so open-minded. Like most people who are comfortable in their own skins, he is wonderfully able to inhabit the skins of others. One semester, he audited a seminar on Holocaust literature. The professor had no idea who Uwem was, so she couldn't help but be surprised when he asked, \"Can you tell me, please, how is it that people can do such terrible things to one another?\" If anyone else had asked that question, the professor might have thought he was simpleminded. But she could tell that this mysterious stranger was asking his question in the most profound way, from the depths of" ]

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

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[ "some vertical, so definitely we start exceeding the $30 million of source with the strategic close to $30 million, if you add the strategic, it will be close to $30 million new money coming to the company.\nScott Searle -- Roth Capital Partners, LLC -- Analyst\nGreat, thank you. And George, maybe just to follow-up on the 5G timeline. It seems like with the hiring of the team in Israel, the inbound interest as it relates to 5G in general and in particular, it sounds like a lot around fixed wireless access. What is the current timeline of when you're expecting to have some initial product at least taping out into the marketplace in revenue? Is that at '22 type of opportunity or something that -- is that going to pull forward into '21?\nGeorges Karam -- President and Chief Executive Officer\nI mean, very honestly we're trying to do something. I mean, all depends how we accelerate things, but '21 will be major, I'll say. We'll start seeing some of the technology. I don't believe we'll be shipping anything in '21, it will be more for '22 to start shipping customers. But in '21, we could be sampling without giving more details for the time being.\nScott Searle -- Roth Capital Partners, LLC -- Analyst\nGot you, and just...\nGeorges Karam -- President and Chief Executive Officer\nIt's -- all the R&D investment is on this. The team in Israel is doing well. Well, now we have there more than close to 40 people and strong focus because the more -- the less we are doing on Cat M obviously because we have our new generation is already in hand, the more -- more and more people are engaged into the 5G, which is now becoming like the major R&D investment in the company.\nScott Searle -- Roth Capital Partners, LLC -- Analyst\nGot you. And just two last follow-ups, and then I'll move on. But in terms of Broadband, could you calibrate us what it was in the first quarter and what you're expecting for the second quarter? I think George in the past you had said expect somewhere in the ballpark on an annual basis getting back to the $10 million or so range. Is that kind of correct and we're seeing some upside to that?\n", "And then in the past also you've talked on the massive IoT market. A lot of activity certainly going on there related to Skyworks, your MCU partners and some of the distribution channels that you've dealt with; Avnet and others and things like Monarch Go. What is the size of the pipeline? Is there some way you could help us understand? I know you've talked a lot qualitatively, but in the past, you've given some numbers around the magnitude of that pipeline of opportunities, maybe not explicitly numbers, but can you kind of gauge it in terms of size? Is it 50% larger than it's been? Is it more than that? I mean, just trying to gauge the level of activity there. Thanks; a nice quarter.\nGeorges Karam -- President and Chief Executive Officer\nThank you. Well, I mean, just to talk about the Broadband, obviously, I don't want to -- because the Broadband as you know, we have the emerging and we have Verizon and upside is coming from Verizon. Verizon typically, on the Jetpack, we do around $1.5 million to $2.0 million, depending per quarter. This is the level what I would call it nominal level.\nObviously, the demand is -- we've got -- if we were able to supply five times of this, I will take it I mean in Q2. So definitely, we have a lot of demand. We didn't accept all the demand because obviously we need to be serious and knowing because we have limitation as well of what we could build in very, very short time and possible to do.\nWe took more than -- we accepted order more than what we can supply at risk if you want, and we are working hard to see how to serve this between Q2 and Q3 because some of this demand can shift to Q3. And I'm hoping that beyond this that this -- only this product line maybe will go to a new high, maybe to close to $3.0 million per quarter instead of staying at $1.52 million [Phonetic]. So this is on the Broadband side.\nYou spoke about the IoT. I mean if I compare the projection if you want, we are talking about quarter to " ]

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

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[ "Court proceedings in the trial against Tariq Aziz, one of the best-known faces of Saddam Hussein's former regime in Iraq, and several co-defendants have ended after being in session only briefly Tuesday. The trial of Tariq Aziz, pictured here in a Baghdad courtroom in July 2004, has begun. The trial, which is to resume May 20, was delayed because one of the defendants, Ali Hassan al-Majeed, also known as \"Chemical Ali,\" was not present because he was ill. Iraqi procedural codes require that all defendants be in court for the first session. Chief Judge Raouf Abdul Rahman read a U.S. medical report signed by three doctors that said al-Majeed is in critical condition after suffering a heart attack two weeks ago. He has been released from the hospital but still requires daily treatment and doctor visits. The report said that traveling to court from his detention facility could worsen his health. He cannot walk up stairs or sit in court for long hours, it said. He will need three weeks to recover and may need some sort of surgery, the report said. It added he is diabetic and suffers from \"acute heart failure.\" Treatment includes clearing of the arteries followed by either open heart surgery or stents in the arteries, but neither option is available at this time, the report said. Ali Hasan al-Majeed, who was a top Baathist official during the Saddam Hussein era, is awaiting execution after being convicted of genocide in connection with the killing of Kurds during the Anfal campaign in the late 1980s. Aziz, al-Majeed and six others are now facing trial for having a role in the execution of 42 Iraqi merchants in 1992. A former deputy prime minister, Aziz was the first to be called into court, followed by six other defendants. Aziz appeared frail, walked slowly with a cane, and was coughing and blowing his nose. He was sitting in the seat Saddam Hussein used during his appearances in court and was represented by a private attorney. The court was sorting out which defendants did not have attorneys present. This is the fourth major trial of former Hussein regime officials since his government was overthrown. The most prominent was the 2006 trial that led to the execution of Hussein and three lieutenants for a crackdown in the Shiite town of Dujail in which more than 140 men allegedly plotting Hussein's assassination were executed. ", "Aziz's lead attorney, Badie Aref -- who was an attorney for Hussein in that trial -- is charged with contempt of court in Iraq and has been in Jordan since a warrant for his arrest was issued last year. He said he would return to Baghdad for this trial only if he were assured he would not be arrested. Meanwhile, amid a swirling, blanketing sandstorm, fierce fighting in Baghdad Tuesday saw U.S. troops kill 32 \"enemy forces\" in a gunbattle, according to the U.S. military. Iraqi authorities reported 16 people were killed in a residential area in the same clash. The Iraqi Interior Ministry said the fighting was in the predominantly Shiite Sadr City neighborhood in eastern Baghdad. Five suspected insurgents dressed in Iraqi army uniforms attacked the home of a human rights worker in Diyala on Tuesday, killing the resident of the home and an Iraqi soldier who lived in the neighborhood, according to the U.S. military. Two Iraqi civilians also were injured in the small-arms attack. \"Attacking civilians in their homes is both criminal and barbaric,\" said Major Peggy Kageleiry, spokeswoman for the military's Multi-National Division - North. Insurgents have been attempting to exploit the harsh conditions, which have curtailed flights coming into Baghdad International Airport. Sandstorms make it easier for militants to screen their activities and harder for U.S. air power to be deployed effectively. A U.S. military spokesman said fighting began around 9:30 a.m. when militants fired at a U.S. patrol and wounded an American soldier. When the soldier was being evacuated, a U.S. vehicle was struck by two roadside bombs and peppered with small-arms fire and rocket propelled grenades. That left two more soldiers" ]

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[ "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" ]

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[ "\nWade Davis -- Chief Financial Officer\nOK. So in terms of the ongoing growth investment, it's fairly modest and it's important to note that we're actually stepping on the gas where we're seeing delivered, where we're seeing the ability to deliver results, right? So as we've seen Pluto traction begin to take hold. We've started incrementally investing to support and help accelerate that growth. We are starting to invest incrementally in our niche B2C products, as Bob described.\nAnd obviously, we're investing in supporting the AMS infrastructure. When you take all of that together, these are very modest incremental investments in the scheme of Viacom. We are going to continue to invest in things like Pluto. Obviously, it's in a hyper-growth mode.\nGoing to require investment in order to continue to support that. But one of the great things about Pluto is that the majority of its cost structure is variable. So unlike a lot of other people's forays into this area, we don't have to invest significantly ahead of the curve in terms of big fixed costs, licenses and content distribution. So we're able to grow the cost structure as the business grows.\nIn terms of overall margins, we've talked a lot previously about our cost transformation activities. We are able to, we continue to be able to drop significant savings to the bottom line. So in this quarter, if you look at SG&A improvements, we were able to improve SG&A by a couple of percent net of ad and promo expense. And so those savings are really allowing us to invest in these growth initiatives without really impacting Viacom's bottom line.\nBob Bakish -- President and Chief Executive Officer\nYes. And in terms of your question on over the top and the like in the affiliate number, the reality is I'm not going to unpack that because we have a multifaceted distribution business, which is reflective of the significantly broader landscape that we now operate in. Viacom IP is in demand across this landscape, in many sectors. We're working to satisfy that demand, and that's driving growth overall in distribution.\nAnd that's really how you need to think about it.\nDoug Mitchelson -- Credit Suisse -- Analyst\nAnd if I could just follow up, Bob, if you sort of carry forward with Wade's comments on the growth question, have you sort of checked the box on a lot of the things that you wanted to do regarding driving growth initiatives? Or should we expect that there's plenty more to come?\n", "Bob Bakish -- President and Chief Executive Officer\nLook, I think we're just getting to an inflection point. Obviously, if you go back two, three years. We had a bunch of near-term revitalization work we had to do, and I won't recover that. But we said simultaneously we'd evolve the company for the future.\nAnd when we entered fiscal '19, we said we were really leaning into that side, and that's exactly what we've been doing. And then you look at our third fiscal quarter and the return to growth on so many metrics, you're seeing it actually start to play through the P&L. And our focus now is on continuing to ramp that. And that might be, well, that includes ramping things like our Pluto platform, ensuring that broadband only and for that matter, video-bundled consumers first in the US, but really all around the world, have a premium content experience that leads the industry.\nThat includes our advanced marketing solution business, which as Wade discussed, really differentiated us in the quarter, in the upfront and sets us up and actually already has returned us to sustainable growth. So you should expect us to keep doing that. And you should also expect us to continue to look for ways to evolve our business and take advantages in a glass-half-full way of the many opportunities this shifting landscape presents.\nDoug Mitchelson -- Credit Suisse -- Analyst\nAll right, thanks so much.\nOperator\nOur next question comes from Rich Greenfield, please proceed with your question.\nBob Bakish -- President and Chief Executive Officer\nRich, you might be on mute?\nRich Greenfield -- Analyst\nSorry about that. Sorry. Sorry about t" ]

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[ "option of 5G. Our continued innovation drives success and stability in our licensing business. All major handset OEMs are under license, and we now have over 110 5G agreements. In fiscal '20, our focus on innovation continued at an accelerated pace despite COVID-19 challenges.\nYear over year, invention disclosures were up over 60%, and 5G-related invention disclosures more than doubled. We continue to drive innovation advances in 5G through releases 17, 18 and beyond, which will enable the adoption of wireless technology broadly beyond smartphones and into other industries. We have sustained this focus despite unwarranted legal challenges, and we now look forward to continuing our decades-long commitment to fundamental transformative innovation. Over the years, we have built strong portfolios in several key areas that converge with and enable wireless systems and applications, such as multimedia, security and artificial intelligence.\nOur proven ability to invent and commercialize leading technologies is the foundation of how we drive long-term value for our stockholders. The early success of our 5G rollout is a great testament to our strategy of investing well in advance of these large opportunities. 5G represents the single largest opportunity in our history, creating new opportunities to extend our leadership. This will continue to play out over many years as wireless disruption will impact many industries.\nAs an example, several years ago, we identified RF as a unique transition opportunity to address many of the technical challenges of delivering a 5G experience. I am particularly proud of how the team has executed against this opportunity, creating a leadership position in a short period of time. In fiscal '20, we delivered $2.4 billion of RF front-end revenue, up 60% year over year. Qualcomm is now one of the largest RF suppliers with design wins across all our premium tier smartphone customers and with a long-term road map to continue to grow our RF leadership as 5G is adopted in other industries.\n", "Our 5G design wins continue to be powered by our RF front-end solutions, whether they support 4G, sub-6 millimeter-wave or both 5G bands, and whether they are in smartphones or other products such as embedded modules for PCs, IoT solutions or mobile hotspots. As we have in RF, we have built beachhead positions in both auto and IoT. Our scale enables us to make multiple profitable bets in areas where we expect a tailwind as each of these industry road maps adopt cellular technologies, as you can see taking place today in automotive, where we have emerged as a strategic technology partner to the automotive industry, with nearly all the major OEMs adopting our products. Next-generation 5G telematics design wins, in addition to our 3G and 4G design wins, solidify our position as a leader in connected cars.\nWe are also extending our mobile RF front-end leadership into automotive where 100% of our next-generation 5G and a majority of our next-generation 4G telematics design wins include our automotive qualified RF front-end products. In addition, our digital cockpit solutions, now in the third generation, enable best-in-class capabilities across premium, mid- and entry tier solutions. Our automotive design win pipeline is now approximately $8 billion, up from almost $6.5 billion at the start of the fiscal year, giving us great visibility into meeting the long-term revenue targets we provided at our Analyst Day last November. The automotive industry is transforming at an unprecedented rate, and we are incredibly well positioned to lead the industry with a long-term opportunity to expand our dollar share of content in auto as we have done in smartphones.\nTurning to IoT. We are extending our IP investments from across the company into our portfolio of connected and non-connected products with a broad portfolio of technologies, including connectivity, lower-power processing and security. We are also diversified across multiple product areas and industry verticals as we have nearly 13,000 customers. In fiscal '20, we saw better-tha" ]

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[ " me address the first part of your question on COD Mobile specifically.\nAnd then maybe I'll invite Armin or someone else to chime in on a more macro view on China and any potential restrictions there. On mobile for us, we see three key opportunities kind of going forward. And I'd say those could be bucketed as geographic, operational and strategic, and let me touch on each of those. On the geographic front, for Call of Duty Mobile, we're seeing, obviously, great success in the U.S.\nand through Europe, and we're also continuing to optimize across those regions, but we're seeing also great growth in emerging markets such as Latin America, India and Southeast Asia. And where we're focusing execution and investment for local players. And so that's something they can still scale and help grow the business overall. On the operational side, Call of Duty Mobile is already a great game, and we see opportunity to make it even better.\nOur mobile team is continuing to do an incredible job of constantly improving the experience and adding content to players in the west. And the team just keeps getting better and better, which is a testament to their passion and commitment to the mobile community. And China is just another example there where the title itself is off to a strong start, but still has a lot of opportunity in front of it to be tailored and optimized for the local audience. And the team is also very focused on that as well.\nAnd then lastly is strategic. As we think about long term, where we see a compelling -- more compelling growth on the platform. And overall, I'd say we believe there's an opportunity to better connect mobile to the overall quality of the ecosystem, and we're aggressively hiring talent to help on this journey for us. We've created our own internal mobile studio and are driving a major recruiting effort across Beenox and Activision Shanghai to support as well.\nAnd together, I think as Daniel already mentioned on the call, these teams are living an unannounced new mobile project in the Call Duty franchise, which we're very excited about. So as I think about the business, as we start to approach the 2-year anniversary of the launch in the West, we think there's a lot of both near-term and long-term opportunities on the platform for us and to grow the audience and engage the audience on a broad basis. Armin, do you want to comment on the China piece?\nArmin Zerza -- Chief Financial Officer\n", "Yes. Thanks, Rob. Thanks for your question again. With respect to your question on China, as you know, the rules and regulations in the country do change over time.\nAnd we have been working with our partners for many years now in this changing environment. So what we're doing currently is working with them and our local teams on the ground to assess this latest situation. Now from a business perspective, China was less than 5% of our net bookings for us last year. And as you know, we have a long history of adapting and responding to changes in the regulatory environment there.\nAnd of course, we aim to continue to do so going forward. So thanks again for your question. \nOperator\nAnd that question is from Mario Lu with Barclays. Please go ahead. \nMario Lu -- Barclays -- Analyst\nGreat. Thanks for taking the question. So I just wanted to follow up on the question earlier on mobile advertising. A number of mobile gaming companies now have both a mobile gaming studio and an ad network, all under the same umbrella.\nSo curious to hear your thoughts of the strategy and if it's something that King can potentially implement going forward? Thanks. \nDaniel Alegre -- President and Chief Operating Officer\nThanks, Mario, this is Daniel again. Look, the good news is, we're actually already vertically integrated. And we have our own in-house ads business that supports in-game advertising across our mobile games, across all of Activision, Blizzard and King. The ads team have organically built our own advertising technology platform.\nAnd this is really made to enable both the demand and the supply management, which also leverages third-party t" ]

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[ "?\nTyson Tuttle -- Chief Executive Officer\nYeah, Tore. Thanks a lot for the kind words. I'm going to miss traveling with you and your thoughtful reports and questions. So -- but we're not done yet here, we got to get a little bit of time to go. We started out over a decade ago, I think you remember when we said, hey, we're going to pivot the company to IoT and we had been a high performance mixed signal an RF provider of various components across a diverse set of markets. But we viewed the IoT as kind of the next frontier where we're integrating wireless connectivity into everything outside of the PC and handset. And we predicted there would be tens of thousands of customers and thousands of applications, but that technology over time and that that would be a long-term growth trend where we could be able to control the integration path to not just do the SoC and the chips to integrate wireless and battery management and processing in memory and sensor interfaces and now security and AI and a lot of things but also build on top of that, build our differentiation to where you have communication protocol stacks and they become experts in networking and communication standards to develop tools and the channel to sell across all of those markets, effectively and to drive simplicity so that we're able to effectively support those customers. And we've seen that business grow from several hundred million to now over $650 million this year and divesting our Infrastructure and Automotive business, which was essentially the legacy business to be able to focus on this is I think a real testament to how that that strategy has played out here over the last decade. And as we look forward, we see our position is strong and growing and strength. We've now -- we're now supporting a multitude of wireless standards to a very -- to address various segments of the market. We've got, we're supplying solutions to industry leaders. We've got a huge pipeline of design wins and decades of growth ahead in terms of the wireless market is growing at about a 15% CAGR so 5 times or more GDP.\n", "And so that puts the company on a really good footing. And there's a lot of work to do to get out our new products and to continue to innovate, to continue to build out those teams, to continue to support customers in a more efficient way, so that we can continue to gain leverage off of the bottom line as the revenue grows. And I couldn't be more excited about what we -- more proud of what we've created and more excited about the path ahead and I'm delighted. I've been working with Matt here for the last three, four years, you actually the last year, it seems like even longer than that, but he is a fantastic leader of the team. And the team really rallied around him and he has got energy and passion and is going to do a great job carrying our values and our strategy and then evolving that into the future and leading the team. So thank you all for your patience over the last decade. It's been a really, really exciting time. And I think the future is very, very bright for Silicon Labs as I move onto the Technical Advisory Board and get to chair from the sidelines.\nTore Svanberg -- Stifel Nicolaus -- Analyst\nThank you for that, Tyson. As a follow-up, John, you mentioned, total bookings of $400 million, which translates to a book to bill of 1.43. Could you calibrate that number a little bit more, I mean is the bulk of those bookings in IoT any other color you can share?\nJohn Hollister -- Chief Financial Officer\nYeah, Tore, the majority of the bookings are in IoT and the calibration you're correctly viewing that it's very high, and it has been high now for three quarters. And what that means is, we have an extraordinarily high level of backlog coverage in the business right now. It really is a supply constrained in the -- as we've been indicating we're working constantly to activate as much supply as we can to drive the growth, but it is a very high level of bookings.\nTore Svanberg -- Stifel Nicolaus -- Analyst\nSounds great. Thank you very much.\nOperator\nThis concludes o" ]

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

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[ "ng early. And that's been really exciting. So we're really excited about multiple avenues in generating growth in 2022.\nJosh Jennings -- Cowen -- Analyst\nGreat. And then one last later on pipeline, captured coming on board. Any way you can detail when that -- I guess the full launch of the integrated platform could occur? NTAP is kicking in here, or just did. Then any other software or next-generation platform updates and just in terms of timelines, we should think that could catalyze -- new technology actually could catalyze stronger adoption utilization trends. Thanks again.\nTodd Fruchterman -- President and Chief Executive Officer\nSure, Josh. Thanks. We're -- like I said earlier on the call, we're on track for the launch with Caption in the winter. This year, we're excited about bringing it into the market. And we're really excited about bringing into the market, because I think it's really just -- example 5 where we've been talking about which is taking the burden onto the device and away from the user and really getting it less about doing procedures and ultrasound and more about information and decision-making.\nAnd we think Caption really helps us demonstrate that and allows people to think about that information and influencing care decisions earlier and differently than they have in the past, because this information available that wasn't readily available broadly across that clinical situation. And so we're excited about that. You'll see that in the winter coming out here.\nAnd then as it relates to just our development pipeline, we're really excited about and I spoke about this in the call. The great progress that our technical teams have been making. We've Andrei has come in, the technical teams are realigned and I think we're making a lot of progress on our software. We're getting very close to our customer needs and being very customer-centric.\nAnd I think you'll see the normal cadence of us with software releases coming out in a timely fashion here in the near future. And then hardware releases, like we've said, in that couple year timeframe as we look at where our evolution of our technology continues to open up the differentiation and enable value creation across the continuum was getting ultrasound technology. So you were really excited about how our technical organization is performing.\n", "And I think we're bringing it all together, Josh, with that behavioral change with ease-of-use and we're starting that journey as the technical pieces are taking -- helping the device take more of the burden, we're really leaning into our clinical organization and generating data and our clinical education, helping users incorporate this technology and information into their clinical practices. And that's really where our lean for 2022 is to help accelerate our growth.\nJosh Jennings -- Cowen -- Analyst\nExcellent. Thanks so much.\nOperator\n[Operator Closing Remarks]\nDuration: 53 minutes\nCall participants:\nAgnes Lee -- Investor Relations\nTodd Fruchterman -- President and Chief Executive Officer\nStephanie Fielding -- Chief Financial Officer\nMatt Taylor -- UBS -- Analyst\nJosh Jennings -- Cowen -- Analyst\nMore BFLY analysis\nAll earnings call transcripts\n\n\n\n\n" ]

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[ " This is a land grab moment in which we can capture meaningful WAN market share by offering customers superior products at a substantial discount to incumbent legacy product pricing. As a recognized leader in the Gartner Magic Quadrant for SD-WAN, I'm very encouraged by the building contract pipeline and excited about the long-term growth prospects.\nSecondly, we continue to expand our leading global IoT platform. We recently announced with America Movil for Latin America a new deal which completes global footprint. This is already a circa EUR800 million business for the Group. And as the right chart shows, we're growing connection strongly across the key industry verticals, which we believe have the most potential. The next stage in the journey is to scale our platform and expand its features, while moving up the value chain from connectivity to complete solutions and data analytics as we have done successfully in automotive.\nFinally, our Emerging Consumer segment contributed just under 20% of revenues in the first half, and it's growing strongly. We've discussed the data penetration and smartphone adoption opportunity several times. So today I would like to focus on the additional products where we see the potential for another wave of growth. M-Pesa has become Africa's leading payments platform, with 39 million customers processing 5.8 billion transactions in the first half, a platform that is significantly larger than any African Bank and already a EUR1 billion revenue generator for us.\nM-Pesa is now moving beyond its origins as a mobile transfer service and is providing enterprise payments, financial services and mobile commerce. As smartphone penetration grows, we will take the opportunity to expand and develop the functionality on the platform, supporting additional growth opportunities in our countries and potentially other sub-Saharan Africa countries. Although we are at a much earlier stage, Vodacom South Africa is also succeeding in financial and digital services, leveraging its leading market position to sell insurance and digital entertainment. We saw financial services revenue grow 37% in H1.\n", "So, to summarize, the consistency of our commercial performance is improving and we have returned to top line growth with Europe tracking to plan and Rest of World ahead of plan. We are more than halfway toward our three year EUR1.2 billion net OpEx reduction target, supported by strong momentum in digital, underpinning our ambition to continue to expand EBITDA margins. And we have made a fast start on the Liberty integration, building high confidence in achieving our synergy plans. All this gives us confidence that we will build on our first half performance and see both service revenue and EBITDA growth improve in H2, underpinning our new financial guidance.\nStrategically, we are making good progress on improving asset utilization, with mobile network sharing deals secured in five markets, active discussions in Germany and a reciprocal wholesale deal with Virgin in the UK. We are also actively working to monetize our tower assets over the coming 15 months, unlocking significant value for our shareholders.\nAnd on that, Margherita, do you want to join me?\nQuestions and Answers:\nNick Read -- Chief Executive Officer\nNow, I've been told it's one question only. And you have to use the mics because otherwise I don't think you get heard. So you're first, sir.\nAkhil Dattani -- JPMorgan -- Analyst\nOkay. Thanks. It's Akhil from JPMorgan. Can I maybe start with the broader commercial strategy? I guess good KPIs, but obviously one of the announcements we've had in the last week or so is an MVNO announcement in the UK. Maybe if you could just expand on the decision making behind that and what you feel led to that when Liberty yesterday was alluding to a more aggressive price point versus what BT had been offering? And I guess more broadly, you've talked about your digital channels and how you're going to use that to target the low end. How do you think about the MVNO strategy outside of the UK? So can we extrapolate anything from t" ]

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[ "For Olympic swimmer Eric Shanteau, the last two months have been a whirlwind. \"Full of the best moments and the scariest moments of my life,\" says the 24-year-old Olympic swimmer. Eric Shanteau said he felt angry when he found out he had testicular cancer. \"Getting to the Olympics was, has always been, my swimming dream since I was 8 or 9 years old. You know, right after I started swimming it was, 'I want to make an Olympic team. That's where I want to be'.\" In June, a week before the qualifying round of the Olympics he was told he had testicular cancer. \"My initial reaction was probably anger more than anything else,\" he says. \"I'm used to being in control of everything. I'm in control of how I train, how I race and then to all of a sudden have that control ripped away from me was tough.\" After weeks of tests to determine the \"stage\" or spread of the cancer, Shanteau's team of doctors cleared him to compete in the Beijing Olympics, which meant carefully monitoring his tumor but delaying treatment. Though putting off the surgery was controversial to some, Eric says it was an educated choice based on numerous doctor evaluations. \"I hope people understand that if I was in a different position with my test results, then I wouldn't have put off having surgery.\" Dr. Sanjay Gupta reports from Eric Shanteau's surgery » He swam a personal best in the 200 meter breaststroke. He did not qualify for the finals. Cancer was a motivator, he says, because he knew it meant he could be facing his last competition. He put everything he had into that heat. \"Leave it all in the pool, and I don't look back and regret anything as far as how I raced.\" Once back from Beijing, Shanteau invited CNN to spend time with him the night before his surgery in Atlanta, Georgia. Though admittedly a little scared, he spent the evening relaxing with his family, cooking dinner, walking the dog. A source of inspiration, he says, were fans who shared their stories of beating cancer. \"They send me their story and it helps me to learn that people are going through the same thing I am all over the world,\" says Shanteau. \"They all affect me in a different way and it's been really encouraging to share in this experience with other people.\" ", "Testicular cancer is diagnosed in about 1 in 300 men in their lifetime. It is the most common form of cancer for 15- to 34-year-olds. It is also one of the most curable if discovered early. Nearly 140,000 men in the United States are testicular cancer survivors. Shanteau says he experienced no symptoms of cancer and came across the tumor by chance. \"I've been in a Speedo half my life,\" he says. \"So I am really comfortable with my body. One day I just felt something that wasn't suppose to be there. I decided to go and get it checked out.\" He adds that although he had the \"greatest excuse in the world\" -- an Olympic dream -- to ignore the lump, he understood the importance of early detection. Shanteau's father Rick, is battling lung cancer and responding well to treatment. \"A lot of guys, if they hear a rattle in their car, they're at the mechanic the next day,\" he says. \"But if they feel something [physically] that they don't think should be there, it takes them a year to get to their doctor and that just is not smart. There's really no excuse, because it can save your life.\" Fast forward to Shanteau's recent operation at Emory University Hospital. CNN Chief Medical Correspondent Dr. Sanjay Gupta was with Shanteau during the surgery and spoke with the lead surgeon, Dr. Jeff Carney, moments afterward. \"I think the operation went very well,\" Carney said. \"Eric's" ]

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[ "grew 182% year-over-year in Q2 and now represents almost 29% of total revenue. And cloud software portfolio grew 49% year-over-year, which is now 20% of total revenue. Combined, these next-generation products now represent almost half of total revenue, up from 44% of our business just last quarter. Let me reiterate that because it's impressive. Our new generation of products now represents almost half of total revenue, and we are just getting started. Inseego's end-to-end portfolio is laying the foundation toward 5G controlled enterprise networks that can untether numerous applications and extend reach to areas never connected before. What an exciting time to be in the 5G space. Now let me provide details on our key businesses. Let's start with mobile broadband. We saw great growth in the quarter with this portfolio and, as Dan mentioned earlier, we see no signs of that slowing down with two more 4G launches on track for the third quarter in the U.S. Our 5G solutions are proving to be perfect for the work-from-anywhere paradigm and our carrier customers are leveraging these solutions to provide amazing broadband experiences for a variety of use cases like employee remote connectivity. This is because these solutions are capable of delivering sustained 5G performance with gigabit-plus speeds, low latency and security. Let me provide an example of a new use case. We are collaborating with a Tier one carrier in Western Europe for digital transformation.\n", "This program is powering a wide range of innovative use cases across multiple sectors. One such use case is for mission-critical search and rescue efforts in which our 5G mobile solutions are being leveraged to greatly improve time to locate and rescue injured persons. By utilizing drones outfitted with location equipment and cameras, search and rescue teams can map unknown areas, especially areas with complex terrain before deploying a land team. Our solution is enabling real-time mapping with ultra-fast processing of massive data. Use cases like this are not possible with lower speeds and higher latency of legacy technologies. Next, let's talk about fixed wireless access. In the first half of the year, we released a series of 5G FWA products including two indoor products and two rugged outdoor products, which were certified for use in many markets globally. We also just released a new industrial 5G gateway purpose-built for vertical markets. Response has been extremely positive, and we believe 5G FWA will be a major revenue driver for us moving forward. In addition to anchor channel partners who've been quick to adopt our portfolio, we secured four product awards with operators in the U.S., Australia and the Middle East. Also note that we now have five 5G products certified by both T-Mobile and Verizon including hotspots and FWA. These new products are the primary drivers of the dramatic increase in customer engagements, and they will be instrumental in driving revenue growth in the coming quarters. Let me highlight three factors that are driving the adoption of these 5G products. First, the 5G networks continue to be rolled out at an aggressive pace, and operators are looking to quickly capitalize on this newly added network capacity. This is reinforced by the work-from-anywhere paradigm and a growing enterprise customer pool. Second, the breadth and depth of our 5G portfolio is resonating with customers. Our partners and customers tell us that Inseego products bring out the best in their networks. No other vendor has the performance of our 4G and 5G solutions. Not only are Inseego solutions fast, but they are extremely reliable and proven to deliver consistent throughput for long periods of time. And our new fixed wireless outdoor products can also sustain better connection at exceptionally long distances. In addition, our products are built with a security-first mindset with multiple layers of security built in our proprietary hard and operating system software, which is at the core of all of our devices. In this environment with ransomware and security breaches dramati" ]

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[ "Britain's Prince Andrew on Wednesday defended comments he made suggesting the United States might have been better off had its leaders learned from the British experience with colonialism before invading Iraq. Prince Andrew says he has accepted that his comments could be interpreted as controversial. \"The fact is that we have learned, sometimes at our expense, in the years when we were a colonial power,\" he told CNN. \"So there may or may not have been things and ideas that were of valid use to what was going on at that particular time.\" The 47-year-old prince, in Atlanta on a 10-day U.S. tour to promote British business, said the two countries are closely allied. \"We've been allies, for goodness' sake, for how long?\" he said. Watch him discuss his new role » \"We are now working very much more closely together than we have over the centuries, apart from when we were very, very close during the second World War.\" The Duke of York cited U.S.-British anti-terrorism efforts in Iraq and Afghanistan as an area where the two countries are working together to promote stability and change. The New York Times last week quoted the prince as saying there are \"occasions when people in the U.K. would wish that those in responsible positions in the U.S. might listen and learn from our experiences.\" He added, \"If you are looking at colonialism, if you are looking at operations on an international scale, if you are looking at understanding each other's culture, understanding how to operate in a military insurgency campaign -- we have been through them all.\" The problems faced by U.S. war planners in Iraq have bred \"healthy skepticism\" toward what comes out of Washington, he told the newspaper. In his CNN interview Wednesday, Andrew said he did not consider those comments controversial when he made them, but has since accepted how they could be interpreted that way. Still, the Falklands War veteran who served 22 years in the Royal Navy added, \"You have to take the bashes with the good bits, and I've got a thick skin.\" Asked whether he believes the situation in Iraq is improving, Andrew said he could not answer what he described as \"almost a university Ph.D. question.\" \"I don't think I can possibly predict those sorts of ways that governments work to each other,\" he said. \"I'm only a small cog in a very, very large machine.\" The main purpose of his visit is to promote business investment in Britain, he said. ", "Of the approximately 1,000 investment projects that were begun last year in Britain, more than half came from the United States, resulting in the addition of more than 32,000 jobs, he said. \"Now I realize that what keeps us all going is international commerce, it's global trade,\" he said. \"In some cases, politics keeps a lot of people thinking, but what actually makes the world go round is the commerce that goes on.\" E-mail to a friend" ]

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[ "Well, in the Telecom sector, we're already seeing the growth and we expect it to accelerate further, probably spring time, you know, maybe starting our new fiscal year. We expect probably another uptick in Telecom. So the gap right now has been the broadband, the cable TV, Comcast Charter, folks and you can see with their spectrum auction and some of the projects we're hearing, they've got some very aggressive plans laid out to bring faster speeds and more services to their customer bases. There -- we kind of think is the big five in the US between Verizon, AT&T, T-Mo, Charter and Comcast. Those are really the big five broadband and each of those customers we have very good projects in the headlights. So -- and it's broad based and not everybody -- and what can be a little confusing, I guess is each of those big five have their own strategy on how they're going to use the 5G frequencies and technologies, where their initial focus is? What the longer-term focus is.\nThe good news for EnerSys shareholders is we have a broad suite of products and we have reach and services and relationships and brand awareness across all five of those major accounts. And then I think the real longer term opportunity still exists globally for us to take these successes that we're starting to enjoy today in the US into the broader international market. So we couldn't be -- no, we couldn't be happier with the Alpha acquisition, the plan. I think the timing has been disrupted from when we did the original acquisition, but by and large, it's going to plan and we couldn't be more excited about the 5G opportunities.\nNoah Kaye -- Oppenheimer -- Analyst\nOkay, thanks so much for taking the questions.\nDavid M. Shaffer -- Director, President and Chief Executive Officer\nThank you.\nOperator\nThank you. Our next question comes from the line of Greg Lewis with BTIG. Your line is open.\nGreg Lewis -- BTIG -- Analyst\nYes. Hi, thank you and good morning everybody.\nMichael J. Schmidtlein -- Executive Vice President and Chief Financial Officer\nHi, Greg.\nDavid M. Shaffer -- Director, President and Chief Executive Officer\nHi, Greg.\nGreg Lewis -- BTIG -- Analyst\n", "So I just wanted to talk a little bit about the Specialty, kind of, the defense area, just kind of as we think about it and the potential for new administration like, what is that -- like if you could give us some sort of context, is that kind of change the -- that business in terms of pace or ramp? Or is it more around product lifecycle updates or changes. So I'm just, kind of, curious as we -- you make clearly it was a good quarter you guys called it out, as you kind of look out over whatever time period you want, like how should we be thinking about that, kind of, as we move forward into potential change in government?\nDavid M. Shaffer -- Director, President and Chief Executive Officer\nOkay. I -- it's a growing important sector for us and I think our success of late is mostly that the change of trajectory and focus for us is result of an acquisition we did a few years ago when we acquired the cobalt disulfide technology, ENSER [Phonetic] deal -- thermal batteries. And so that's where we've seen the biggest stair steps. But based on the feedback we're receiving and actually I have to say that part of our defense business, the first half of our fiscal year was disappointing. So it's a mix story there, but other parts are really, really going very strong. So by and large, we haven't heard from anybody on our sales team, any sort of change in what they expect and some of the things we're working on are long-term programs anyway. So we aren't anticipating any major impacts for our shareholders from the change administration. Mike do you see it any differently?\nMichael J. Schmidtlein -- Executive Vice President and Chief Financial Officer\nYes. No, you need to keep in mind, Greg, that the US fleet of whether it's helicopters, tactical vehicles, submarines, jet aircraft, that's a pretty fixed fleet and the US is going to do their maintenance on them and they have those weapon systems last for 20 to 30 plus years. " ]

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[ "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" ]

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[ "ion, to remain strong as carriers address their coverage and capacity needs to meet 4G and 5G demand. We are also focused on growing our business sustainably, while driving industry leadership and innovation.\nA perfect example of this is what we've been doing in Africa with energy efficiency and renewable energy, where, by the end of 2021, we will have invested upwards of $250 million on lithium-ion batteries, solar power solutions and other energy-efficient technology. While we are still fairly early in the overall progression of these investments, the initial results have been compelling, with average diesel consumption per site declining by around 35%, coupled with improved battery and generator efficiency and elevated uptime levels that we believe are best-in-class. Through these initiatives, not only are we earning an attractive return on investment, but we are also helping to build and enhance a sustainable global digital ecosystem. This approach to capital deployment in Africa and Europe is indicative of our overall global investment philosophy.\nWe continue to look for compelling opportunities to deploy capital in responsible, sustainable ways where we can generate attractive, long-term returns and solid growth while partnering with large multinational mobile network operators as they bring enhanced connectivity to their customers. And we believe that the global diversification that we've built into the business will benefit us for years to come. Finally, on Slide 14 and in summary, Q2 was another quarter of solid organic growth, margin expansion, meaningful new build activity and consistent dividend growth. This was achieved while closing on and beginning to integrate the vast majority of our Telxius acquisition, issuing over $2 billion in euro-denominated debt at record low rates, completing a successful common equity issuance and partnering with two world-class strategic investors in CDPQ and Allianz.\nFor all of this, I would like to offer a huge thank you to our nearly 6,000 global employees, including those who have recently joined us from Telxius. Their hard work, unwavering dedication and numerous talents have positioned us extremely well to continue driving compelling total returns for our stockholders. We look forward to finishing 2021 strong and are more excited than ever about our long-term growth trajectory based on the continuing global rise in mobile data demand and our durable competitive advantage throughout our served markets. With that, I'll turn the call back over to the operator for Q&A.\nQuestions & Answers:\nOperator\n[Operator instructions] And our first question goes to the line of Rick Prentiss with Raymond James. Please go ahead.\n", "Rick Prentiss -- Raymond James & Associates -- Analyst\nThanks. Good morning, guys. Busy summer for you, guys. \nTom Bartlett -- President and Chief Executive Officer\nIt has been.\nRick Prentiss -- Raymond James & Associates -- Analyst\nI appreciate you guys breaking out the guidance between consolidated and proportionate AFFO. I think, as you know, that's one of the three things we adjust for from AFFO to FAD. But looking at that item, the $110 million minority interest adjustment for calendar '21, how should we think about what that magnitude looks like when you have a full year of the minority interest in Europe? Just as we think into '22 or '23, what should that delta be looking like? \nRod Smith -- Executive Vice President, CFO, and Treasurer\nYes, absolutely. So that one there, Rick. Let me give you the big pieces of what's actually driving those numbers. And of course, it's Telxius is in there.\nTelxius is in there for the proportionate share of 2021. So of the $110 million roughly, the vast majority of that, of course, is all in the Telxius. The only other ones is with Telxius and then, PGGM, of course, which we now have down in our Germany and Spain areas. And then, we have the small minority interest in India, that's about 8% of the business there.\nSo the way to think about the $110 million, roughly $85 million of that or so is Telxius, the remainder is India. So" ]

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[ "we're going to continue to invest. We want to make sure we have the right people in place to support the business and what we believe is strong growth coming out of this difficult time that we've all experienced. We do actually have a convention in 2021 planned, which is not in 2020 so that does impact the SG&A number, and then we'll continue to expand on technology and our international expansion. A lot of that comes in the form of leveraging third parties that can help us prepare the platform for the future.\nAnd so we expect those investments to continue as well as making sure that our international partners in 2021 are still as well insulated as they can be from the effects of the pandemic. I would only say that we see the virus slowing down in the U.S., we see the vaccine performance. But if you look out across the world it is not the same story. And so we're cautious of that and making sure that we do everything we can to help them.\nChris O'Cull -- Stifel Financial Corp. -- Analyst\nThat's helpful, and then just a follow-up. We've heard a lot of brands that seek out Class A sites say that they haven't really seen a break in rents or any kind of improvements in location opportunities. Given that your model differs somewhat I'm curious if you're seeing a greater level of opportunity in Class B sites than you've typically seen?\nCharles R. Morrison -- Chairman and Chief Executive Officer\nWell, I think we've always seen a great opportunity in the Class B sites, which are Class A for us. So I thank our landlords across the country for providing us such opportunities to grow. But I do think that the market is going to continue to free up. I don't know that we're seeing substantially different rent rates overall, but we certainly have not seen them increase as we would have otherwise seen if we didn't have the pandemic in front of us or behind us. So I think it's pretty much stay the course. No real change there other than we've always had ample access to real estate.\nChris O'Cull -- Stifel Financial Corp. -- Analyst\nGreat. Thank you.\nOperator\nAnd our next question will come from Jared Garber with Goldman Sachs. Please go ahead.\nJared Garber -- Goldman Sachs -- Analyst\n", "Hi. Thanks for taking the question. Many of mine have been asked and thanks -- have been answered, and thanks for all the color today. But want to just round up on the third-party delivery versus your white-label app digital ecosystem. Can you give any kind of breakdown on how that has trended throughout the -- maybe the fourth quarter, the breakdown of those two different channels and what you're seeing in terms of consumer behavior maybe similarities or differences on those channels?\nCharles R. Morrison -- Chairman and Chief Executive Officer\nYes, there's really not much I would call attention to as to the mix between Wingstop.com-sourced occasions and those from our third-party delivery partner, DoorDash. They run about -- with the exception of Q2 last year, which was a bit of an anomaly, they've been running about a 60-40 split to the -- to DoorDash's marketplace over Wingstop. But again, I just remind ourselves, we're agnostic as to the platform they come from other than the information that we get about our guests, which I addressed in an earlier comment.\nJared Garber -- Goldman Sachs -- Analyst\nThanks. And just a follow up there. Curious if you're seeing -- from this free delivery promotions that you offered in the fourth quarter, are you seeing new customers sign-up or engage with the brand on the back of those or if you can tell based on the consumer data or is that more of the core, core consumer?\nCharles R. Morrison -- Chairman and Chief Executive Officer\nYeah, I think regardless of the promotion we believe that delivery represents for the most part a new incremental customer to Wingstop who have not tried us before, and hence my comment about really growing the size of our database that's indicative of the performance of delivery.\nOperator\nAnd our next question will come from Jeff Farmer with Gordon Haskett. Please go ahead. Hello, your line may be" ]

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[ "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" ]

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[ "ew technology that we have in 5G are going to add substantial content to our opportunities, no question about that. So now we're talking about further out in BAW what else can we do, we've got aspirations to continue to do more, but the things that we're doing now today on leveraging BAW, leveraging Sky5 as a platform, leveraging the incremental content that 5G bands bring all going to be a great, great opportunity for us to step up. And one of the things that's helping us is the complexity. We keep saying this, but it's really important. The technology burden in a 5G device is substantially harder, more difficult to implement, more challenging for the customer and then bring that to market quickly. So there's a lot there. We are the experts in doing that. That's why we talk about decades of experience. We've been through these transitions. This is one of the harder ones and that's great for us and it's great for the top players in the market because we're going to be able to enjoy solving our customers' problems and putting them in a position to win. So we're excited about it. We're going to lever all of our technologies, our TC SAW capability, our packaging technology, our bulk acoustic wave, ceramic, but all of these technologies that we have will play a role. But the content opportunity is absolutely there. We've talked about that before in presentations prepared remarks that we see meaningful dollars of content opportunity and some of that will start in the second half of this year.\nCraig Ellis -- B. Riley FBR -- Analyst\nAnd with regards to that last point with content kicking in in the second half of the year beyond what we're seeing with momentum in the business here in the quarter that you are just guiding to which is above seasonal. So is it fair to think that with the content that you've got, you've got a year where integrated mobile can drive consistently above seasonal performance in the business or is it just too early to be able to have that kind of visibility from where you are?\nLiam K. Griffin -- President and Chief Executive Officer\n", "Yeah. Yeah, I mean it's difficult to figure out what the natural seasonality is going to be. But we definitely see improving opportunities for us, design wins that have been consummated that haven't yet shipped. And let's also look at where the customers are. One of the largest customers, great customer, hasn't put a 5G phone out yet. So that's another thing to think through. So I think there is plenty on the horizon. We're really excited about it. We just delivered a beat and raise Q1 and Q2. I think the broad markets business is going to accelerate. We talked a little bit about that with Kris. The 5G opportunities are right there in front of us. We're executing fully. We're adding capital and we're really enthused about the opportunities that are in front of us.\nOperator\nYour next question comes from the line of Chris Caso from Raymond James. Your line is open.\nChris Caso -- Raymond James -- Analyst\nYes, thank you. I guess first question is if you could characterize the strength that you're seeing and kind of where the strength is coming from that's driving the better seasonal Q1. I guess, I'm assuming that the new Chinese 5G phones are a large part of that, if you can clarify that. And then as we go through the year, what is going to be the pace of new introductions in your content gains from the Chinese phones? Is that going to be something that steady through the year, is it more kind of front-end loaded, maybe get some clarification on that.\nLiam K. Griffin -- President and Chief Executive Officer\nSure. Sure, Chris. Well, a couple of things. This is the first period that we're actually talking about 5G in devices and bring in revenue to the table. So early, early innings and we're already seeing some improvements in our numbers for Q1 and Q2. And that's the early part of 5G. And if I were to look at that, a lot of that is China, it's the Oppo, Vivo, Xiaomi names like that. But we're also seeing ramps coming in with Samsung. I think there's going to be some really nice r" ]

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