Marvell (MRVL) 2023 Q4 Eearnings Call

Good afternoon and welcome to the Marvell Technology Incorporated Fourth Quarter and Fiscal Year 2024 Earnings Conference Call. All participants will be in a list and only mode. Should you need assistance, please signal conference specialists by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. Please note this event is being recorded. I would now like to turn the conference over to Mr. S. Cheese Saran. Senior Vice President of Investor Relations. Please go ahead, sir. Thank you and good afternoon, everyone. Welcome to Marvell's Fourth Quarter and Fiscal Year 2024 Earnings Call. Joining me today are Matt Murphy, Marvell's Chairman and CEO, and Villain Mankis, our CFO. Let me remind everyone that certain comments made today include forward-looking statements which are subject to significant risks and uncertainties that could cause a natural result to differ mathematically from management's current expectations. Please review the cautionary statements and risk factors contained in our earnings press leads which we filed with the SEC today and posted on our website as well as our most recent 10-10Q filings. We do not intend to update our forward-looking statements.

下午好，欢迎参加Silicon Laboratories公司2024财年第四季度收益电话会议。所有参与者将处于听取模式。如果您需要帮助，请按星号键后跟零来呼叫会议专家。在今天的演示结束后，我们会有机会提问。请注意，此活动正在进行录音。现在我想把会议交给投资者关系高级副总裁S. Cheese Saran先生。请开始，先生。谢谢，下午好，大家。欢迎参加Silicon Laboratories公司2024财年第四季度收益电话会议。今天和我一起的是Marvell的董事长兼首席执行官Matt Murphy和我们的首席财务官Villain Mankis。我要提醒大家，今天发表的某些评论包括前瞻性声明，这些前瞻性声明面临重大风险和不确定性，可能导致实际结果与管理层目前的预期大相径庭。请查看我们今天向SEC提交并发布在我们网站上的收益新闻稿中包含的警示性声明和风险因素，以及我们最近的10-10Q申报文件。我们无意更新我们的前瞻性声明。

During our call today, we will refer to certain non-gap financial measures. The reconciliation between our gap and non-gap financial measures is available in the investor relations section of our website. Earlier today, we announced our accelerated infrastructure for the EI-era investor event, which will be held in New York on April 11. Please refer to our press leads for more details. We look forward to updating investors on the exciting opportunities we see in front of us from the growth and accelerated infrastructure. I mean, I'll turn the call over to Matt for his comments on the quarter of Matt. Thanks, Ashish, and good afternoon, everyone. For the Fourth Quarter of Fiscal 2024, Marvell delivered revenue of $1.43 billion, growing 1% sequentially above the midpoint of guidance. In addition, on a non-gap basis, the Marvell team drove a substantial 330 basis point sequential increase in gross margin, completed execution on the OPEX reduction plan we outlined earlier in the year, and delivered earnings per share of 46 cents, growing 12% sequentially. As Willam will tell you in greater detail, we also drove another strong quarter of operating cash and increased share repurchases. We are pleased to report these results to you and where it remains a challenging macro environment.

在今天的电话会议中，我们将提及特定的非GAAP财务指标。我们的GAAP和非GAAP财务指标之间的调和信息可以在我们网站的投资者关系部分找到。早些时候，我们宣布了我们在EI时代加快基础设施的投资者活动，该活动将于4月11日在纽约举行。请查阅我们的新闻稿以获取更多详细信息。我们期待着向投资者更新我们所看到的增长和加速基础设施带来的令人兴奋的机会。我将把话筒交给Matt，让他对Matt季度发表评论。谢谢，Ashish，大家下午好。在2024财年第四季度，Marvell的营业额达到了143亿美元，较上一季度增长了1%，超过了指导的中间值。此外，从非GAAP的角度看，Marvell团队在毛利率上实现了330个基点的顺序增长，完成了我们之前年初规划的OPEX削减计划，并实现了每股收益为46美分，较上一季度增长了12%。正如Willam将会详细介绍的，我们还实现了另一个强劲的经营现金季度，并增加了股票回购。我们很高兴向您报告这些结果，尽管宏观环境仍然具有挑战性。

In our data center and market for the Fourth Quarter, we drove record revenue of $765 million, above our guidance, growing 54% year over year and 38% sequentially. The strong revenue growth in the quarter was driven by the cloud portion of our data center and market. While AI has been a key growth driver, I am pleased that our standard cloud infrastructure revenue has also grown every quarter, and we see that continuing next year. Our 800 gig PAM solutions led our growth in the Fourth Quarter. We also benefited from higher sequential demand for our storage products as that portion of our data center and market continues its recovery. Revenue from our TerraLink Ethernet switches also grew sequentially in the quarter. Turning to the First Quarter of fiscal 2025, we expect our overall data center revenue to grow in the low single digits sequentially on a percentage basis. We expect revenue from both AI and standard cloud data centers to continue to grow sequentially. We project our electro-optics revenue to continue to be strong, and we also expect a benefit from the initial shipments of our cloud-optimized AI silicon programs. Partially offsetting this growth, we are projecting a more-than-seasonal sequential decline in revenue from enterprise on-premise data centers.

在我们的数据中心和市场中，第四季度我们创下了7.65亿美元的收入记录，超出了我们的指导范围，同比增长54%，环比增长38%。本季度强劲的收入增长主要是由我们数据中心和市场中的云部分推动的。尽管人工智能一直是增长的主要驱动力，我很高兴看到我们标准云基础设施的收入也在每个季度增长，我们预计明年也会继续增长。我们的800G PAM解决方案在第四季度带动了增长。我们还受益于对存储产品的更高环比需求，因为我们的数据中心和市场的这部分继续恢复。我们的TerraLink以太网交换机的收入在本季度也有环比增长。转向2025财年的第一季度，我们预计我们整体数据中心收入将以低个位数百分比的环比增长。我们预计来自人工智能和标准云数据中心的收入将继续以环比增长。我们预计电光收入将继续保持强劲，我们还预计从我们的云优化人工智能硅计划的首次发货中获益。部分抵消这种增长的是，我们预计企业本地数据中心的收入将出现超过季节性的环比下降。

Over the past several years, Marvell has strategically invested in technology, both organically and through acquisitions, to become a critical enabler of accelerated infrastructure. The seismic shift driven by AI in the data center market is creating new opportunities, and we are actively investing to lead the next wave of innovation. We have in place a full suite of solutions across Data Center Interconnect, switching in compute, and the ability to uniquely stitch these together into a unified platform, a true one-stop shop for our data center customers. While our 100Gig-Per-Lane 800Gig-PAM products are currently the workhorse for Interconnect inside AI data centers, customers have begun qualifying our next generation 200Gig-Per-Lane 1.6T PAM solutions. We expect first deployments to start toward the end of this year.

在过去的几年里，马维尔战略性投资于技术领域，无论是通过内部发展还是通过收购，以成为加速基础设施的关键推动者。由人工智能（AI）在数据中心市场带来的重大变革造就了新的机遇，我们正在积极投资，引领创新的下一波浪潮。我们拥有完整的解决方案，涵盖数据中心互联、计算交换，并且能够将这些独特地融合成一个统一平台，为我们的数据中心客户提供真正的一站式服务。虽然我们的每条通道速度为100G的800G PAM产品目前已成为AI数据中心内部互联的主力产品，客户已开始在进行下一代每条通道速度为200G的1.6T PAM解决方案的资格认定。我们预计第一批部署将在今年年底开始。

Compliment error optical Interconnect solutions, we expect to start ramping our PAM DSPs for active electrical cables. This is a new and completely additive market for Marvell, and we expect to be shipping products to multiple tier one cloud customers this year. Our DCI products, which provide connectivity between data centers, are critical to our customer's success and continue to do very well. We see exciting new opportunities ahead of us from growth and generative AI applications driving cloud customers to build new data centers. We also expect a positive uplift from increased investment and inferencing, which will drive more bandwidth between data centers.

夸赞错误的光互连解决方案，我们预计将开始推出用于活动电缆的PAM DSPs。对于Marvell来说，这是一个全新且完全附加的市场，我们预计今年将向多个一线云客户出货产品。我们的数据中心互连产品对客户的成功至关重要，并继续表现非常良好。我们看到了前方令人兴奋的新机遇，增长和生成式人工智能应用推动云客户建立新的数据中心。我们还预计从增加的投资和推理中获得积极提振，这将推动数据中心之间的带宽增加。

We are shipping our 400Gig DCI products in high volume today and are seeing strong interest for our next generation 800G products. I'm also very pleased to report to you that in fiscal 2024, we significantly expanded our DCI customer base with design wins at multiple data center customers. We expect these design wins to begin ramping next year. As you will remember from prior calls, Marvell Silicon Photonics technology has been a critical enabler of our DCI modules. We will hear more at OSC and our upcoming AI event about how we plan to deploy our field proven Silicon Photonics technology to enable next generation higher density, lower power interconnects.

今天我们正大量发货我们的400G DCI产品，并且看到我们下一代800G产品受到强烈关注。我也非常高兴向您报告，截至2024财年，我们在多个数据中心客户处赢得了设计奖，并显著扩大了我们的DCI客户群。我们预计这些设计获胜案会在明年开始大规模推广。正如您可能还记得之前的通话中所提到的，Marvell的硅光子技术一直是我们DCI模块的关键推动因素。在即将举行的OSC大会和我们即将举办的人工智能活动中，我们将更多地了解到我们计划如何部署我们经过实地验证的硅光子技术，以实现下一代更高密度、更低功耗的互联。

In data center switching, our TerraLink 12.8T products continue to ship in high volume, and we are on track for production shipments of our next generation 51.2T switch later this year. The TerraLink product line you will recall came from our Noveum acquisition. We are on the Noveum team with Marvell's very successful enterprise and carrier switching organization. This larger scale now enables Marvell to accelerate our development to address new cloud opportunities, particularly in switching for AI deployments. We are encouraged by the traction we are seeing with both existing and new customers, which has expanded our opportunity funnel for cloud switching dramatically over the past year. Turning to our cloud-optimized silicon platform, we're seeing significant progress with the first set of design wins outlined during our last investor day.

在数据中心交换领域，我们的TerraLink 12.8T产品继续大批量出货，我们预计今年晚些时候会开始生产我们下一代的51.2T交换机。你可能还记得TerraLink产品线是我们从Noveum收购而来的。我们现在是Marvell非常成功的企业和运营商交换组织中的Noveum团队。这种更大规模现在使得Marvell能加快开发速度，以应对新的云机会，特别是在AI部署的交换领域。我们对现有和新客户的反响感到鼓舞，过去一年我们云交换的机会漏斗得到了显著扩大。至于我们云优化硅平台，我们在上一次投资者日中提到的第一批设计赢得方面取得了显著进展。

Expect initial shipments for our two AI compute programs to start in the first quarter and are on track for a very substantial ramp in the second half of the fiscal year. Customer bring up of these programs is going extremely well, and we are tightly aligned with them on volume expectations and working in lockstep to enable the production. We now have a clear view of demand for both this fiscal year as well as fiscal 2026. We have been working closely with our suppliers and are confident that we have secured capacity for the ramp. With the visibility we now have for these programs, along with many new opportunities, we are very excited about the potential scale of long-term revenue for Marvell from this business. As the initial set of design wins reaches full run rate, we expect annual revenue from cloud-optimized silicon has the potential to rival our fast-growing data center optics which for reference grew to over a billion dollars in fiscal 2024.

我们两款人工智能计算程序的初始货物预计将在第一季度开始发运，并计划在财政年度的下半年实现大幅增长。客户对这些计划的启动进展非常顺利，我们与他们在产量预期上密切协调，并紧密合作以确保生产进展顺利。我们现在清晰地了解了本财政年度和2026财政年度的需求情况。我们与供应商密切合作，对于扩产我们有信心已经获得了足够的产能。有了我们现在对这些计划的全面了解，加上许多新机会，我们对长期收入规模的发展潜力感到非常兴奋。随着最初一批设计赢得的订单达到全面规模，我们预计云优化硅芯片的年收入有望与我们迅速增长的数据中心光学器件的收入媲美，值得注意的是，这部分收入在2024财政年度已达到十亿美元。

With the exploding investment in AI and accelerated computing, the demand for cloud-optimized silicon has grown significantly. We have successfully executed multiple five nanometer designs in the last few years and are deeply engaged with cloud customers on many new three nanometer opportunities. These engagements are driving a substantial increase in the size of our design funnel. AI is increasing the cadence of new chip releases and this plays well to Marvell's strength as a key partner for our cloud customers with a proven ASIC platform. We have a broad suite of differentiated IP including ultra high-speed 30s, ARM compute, security, storage and advanced packaging including Dioded Eye Interconnects and Chiplets. We are well positioned to act as a force multiplier for our cloud customers, enabling them to scale multiple custom programs in quick succession.

随着人工智能和加速计算领域的投资急剧增长，对云优化硅片的需求显著增加。在过去几年中，我们成功地完成了多个五纳米设计，并与云客户就许多新的三纳米机会进行了密切合作。这些合作推动了我们设计储备的大幅增加。人工智能正在加快新芯片发布的节奏，而这正好与Marvell作为云客户的关键合作伙伴，拥有经验丰富的ASIC平台的优势相吻合。我们拥有一套广泛的差异化IP，包括超高速30s、ARM计算、安全、存储和先进封装，包括二极管间互连和芯片组。我们处于良好的位置，能够成为云客户的增长增强器，帮助他们快速扩大多个定制项目。

Now let me turn to Marvell's carrier and enterprise end markets together. As we have been communicating, these end markets have been dealing with a period of soft industry demand. As a result, both were down sequentially in the fourth quarter and we expect them to decline again in the first quarter. On a sequential basis, we expect revenue in the first quarter from carrier to decline by approximately 50 percent and enterprise networking to decline by approximately 40 percent. Looking ahead, we expect revenue declines in these end markets to be behind us after the first quarter and forecast a recovery in the second half of the fiscal year. Longer term, these are large and enduring end markets which are critical to the global economy. As a result, we expect both of these end markets to eventually return to contributing over a billion dollars each in revenue on an annual basis once demand normalizes and we begin to realize the benefits of upcoming Marvell's specific products like this.

现在让我转向Marvell的运营商和企业终端市场。正如我们一直在沟通的那样，这些终端市场一直在经历行业需求疲软期。因此，第四季度两者都出现了环比下降，我们预计它们在第一季度将再次下降。从环比的角度来看，我们预计第一季度的运营商收入将下降约50％，企业网络将下降约40％。展望未来，我们预计这些终端市场在第一季度之后的收入下滑将告一段落，并预计在财年下半年会有复苏。从长期来看，这些是庞大并持久的终端市场，对全球经济至关重要。因此，我们预计一旦需求正常化并开始实现即将推出的Marvell特定产品的益处，这两个终端市场最终将每年各贡献超过10亿美元的收入。

Turning to the consumer end market, revenue declined in the fourth quarter as expected and is projected to decline approximately 70 percent sequentially in the first quarter. This forecast reflects the completion of deliveries for an end of life program in the prior quarter as well as significantly weaker demand from the game console market. Turning to our automotive and industrial end market, revenue in the fourth quarter was 82 million declining 17 percent year over year and 23 percent sequentially. As expected, the sequential weakness was primarily driven by a sharp decline in the industrial portion of the end market where order patterns can be lumpy in any given quarter. Fiscal 2024, our automotive business delivered another strong year as revenue growing in the double digits year over year on a percentage basis. We are benefiting from growth in Marvell content driven by an increase in the number of Ethernet connected endpoints and cars coupled with the need for more bandwidth. We have continued to accumulate new Ethernet design wins across a broad swath of automotive OEMs. While the initial wave of our automotive revenue was driven primarily by EVs and hybrids, we now have also one high volume internal combustion vehicles with major auto OEMs. These wins tend to be multi-platform in nature covering numerous model simultaneously.

转向消费者端市场，预计第四季度收入如预期那样下降，并预计第一季度将按季度顺序下降约70％。这一预测反映了在上一季度结束的生命周期计划的交付完成，以及游戏机市场需求显著减弱。 转向我们的汽车和工业终端市场，在第四季度，收入为8200万美元，与去年同期相比下降了17％，与上一季度相比下降了23％。如预期那样，季度性的疲弱主要是由终端市场工业部分的急剧下降驱动的，在任何季度订单模式可能都不规则。 在2024财年，我们的汽车业务再次取得了强劲的增长，年收入在百分比基础上实现了两位数的增长。我们受益于Marvell内容的增长，这是由以太网连接端点和汽车需求更多带宽驱动的。我们继续在广泛的汽车原始设备制造商中积累新的以太网设计赢。虽然我们汽车收入的最初浪潮主要由电动车和混合动力车驱动，但我们现在也为主要汽车原始设备制造商的高产量内燃机汽车赢得了一些项目。这些获胜项目往往是多平台性质，同时覆盖多个型号。

Turning now to our forecast for the first quarter of fiscal 2025, we expect revenue from our overall auto and industrial end market to be flat sequentially. In summary, in fiscal 2024, we delivered total revenue of 5.5 billion. Our data center revenue accelerated throughout the year growing from about a third of total company revenue in the first quarter to more than half exiting the fourth quarter. As customers continued to shift investment from traditional to accelerated infrastructure, we expect data center to drive the majority of our revenue growth going forward. This transition underscores Marvell's transformation into a leading data center company. AI was a key driver of our data center growth in fiscal 2024, contributing over 10% of total company revenue, well above our initial forecast. This was a substantial increase from approximately 3% in the prior year. Our momentum accelerated throughout the fiscal year with AI revenue well over $200 million in the fourth quarter, driven mostly from optics. In fiscal 2025, we expect this trend to continue driving another strong year for our data center end market. We expect our substantial base of electro-optics revenue from AI should remain correlated to accelerator shipments. As those continue to grow, we expect to benefit accordingly. In addition, we project significant revenue contributions from our AI cloud optimized programs well in excess of our prior estimate of a couple hundred million dollars in fiscal 2025. In fact, as our cloud optimized AI silicon programs reach high volume production, we expect our overall cloud optimized revenue to exceed $200 million exiting the fourth quarter. As a result on a run rate basis, this momentum would put our overall cloud optimized silicon revenue above the annual $800 million target we had provided our last investor day. With a full year of contributions in fiscal 2026, we expect to be way ahead of the prior target.

转向我们对2025财政第一季度的预测，我们预计整体汽车和工业终端市场的收入将与上一季度持平。 总之，在2024财政年度，我们实现了总收入55亿美元。 我们的数据中心收入在全年加速增长，从第一季度的公司总收入的约三分之一增长到第四季度超过一半。 随着客户继续将投资从传统基础设施转向加速基础设施，我们预计数据中心将推动未来大部分的收入增长。 此转变凸显了Marvell转型为领先的数据中心公司。 AI是我们2024财政年度数据中心增长的关键驱动因素，贡献超过公司总收入的10%，远高于我们最初的预测。 这比前一年的大约3%大幅增长。 在2025财政年度，我们预计这一趋势将继续推动我们数据中心终端市场的又一个强劲年度。 我们预计从AI的光学部门所产生的庞大的电光收入将继续与加速器出货量相关。 随着这些数量的增长，我们也预计将相应受益。 此外，我们预计来自我们AI云优化计划的重要收入贡献将远远超过我们在2025财政年度的先前估计的几亿美元。 实际上，随着我们的云优化AI硅程序达到高产量生产阶段，我们预计我们的整体云优化收入将在第四季度结束时超过2亿美元。 结果，按照年化速度来看，这种势头将使我们的整体云优化硅收入超过我们在上次投资者日提出的年800美元的目标。 有了在2026财政年度的全年贡献，我们预计会远超过先前的目标。

In aggregate, we see a favorable setup for the second half of this fiscal year driven by continued growth from our data center end market, ongoing growth from automotive, and a recovery and carrier enterprise and consumer. As we continue to drive revenue growth, we remain focused on strong cash flow generation and returning capital to investors. As you saw earlier today, Marvell's board has approved the largest repurchase authorization in our history. We view the emergence of accelerated infrastructure as one of the most significant technology and flexions of our time. I thank all our dedicated employees and leaders for executing on our strategy to fully capitalize on this remarkable opportunity.

从整体来看，我们看到本财年下半年有利的形势，这是由于数据中心终端市场持续增长、汽车市场持续增长以及运营商企业和消费者市场的复苏所推动的。在继续推动收入增长的同时，我们继续专注于强劲的现金流生成和向投资者返还资本。正如您今天早些时候看到的，Marvell的董事会已批准了我们历史上最大规模的回购授权。我们将加速基础设施的出现视为我们这个时代最重要的技术和转折点之一。我要感谢所有我们专注的员工和领导者，他们执行我们的战略，充分利用这个卓越的机遇。

During a tumultuous period to the semiconductor industry, we have taken control of our destiny and are strategically investing to win. Earlier today, we announced the extension of our longstanding collaboration with TSMC to develop the industry's first technology platform to produce two nanometer semiconductors optimized for accelerated infrastructure. This new platform will enable Marvell to deliver substantial advancements in performance, power, and area critical for next generation accelerated workloads. We are very optimistic about our growth prospects and our role in enabling accelerated infrastructure.

在半导体行业动荈不安的时期，我们已经掌控了自己的命运，并正在策略性地投资以获胜。今天早些时候，我们宣布与TSMC延长了我们长期合作的合作关系，共同开发行业第一个技术平台，用于生产优化用于加速基础设施的两纳米半导体。这个新平台将使Marvell能够在性能、功耗和面积等关键方面取得实质性进展，这对于下一代加速工作负载至关重要。我们对我们的增长前景和在促进加速基础设施方面的作用充满信心。

We look forward to updating investors on the massive opportunity in front of us at our accelerated infrastructure for the AI era event on April 11th in New York City. With that, I'll turn the call over to Willem for more detail on our recent results and outlook. Thanks Matt, then. Good afternoon everyone. Let me start with a summary of our fiscal year 2024 results. Marvell delivered 5.5 billion in revenue with a strong second half performance from our data center in market. Drowned by AI applications, our data center revenue in the second half grew by approximately 50% over the first half. GAP gross margin was 41.6%, GAP operating margin was negative 10.3% and GAP lost per diluted share was $1.08. Our non-GAP gross margin was 61.2%.

我们期待在4月11日在纽约举行的为AI时代加速基础设施活动中向投资者更新我们面前的巨大机遇。接下来，我将把话筒交给Willem，让他更详细地介绍我们最近的业绩和展望。谢谢Matt。大家下午好。让我首先总结一下我们2024财年的业绩。Marvell的营业额为55亿美元，数据中心市场在下半年表现强劲。由于AI应用的推动，我们数据中心的营收在下半年增长了约50%。GAP毛利率为41.6%，GAP运营利润率为-10.3%，每股GAP损失为1.08美元。我们的非GAP毛利率为61.2%。

Non-GAP operating margin was 29%. And our non-GAP earnings per diluted share was $1.51. We returned $357 million to shareholders through dividends and buybacks. Moving on to our financial results for the fourth quarter. Revenue in the fourth quarter was $1.427 billion, exceeding the midpoint of our guidance growing 1% on a year-over-year and sequential basis. Data center was our largest end market driving 54% of total revenue. The next largest was enterprise networking with 19%, followed by carrier infrastructure at 12%, consumer at 10%, and auto-industrial at 5%.

非GAP运营利润率为29%。我们的非GAP每股摊薄收益为1.51美元。我们通过股息和回购向股东返还了3.57亿美元。进入我们第四季度的财务结果。第四季度收入为14.27亿美元，超出我们指引的中点，同比和环比增长1%。数据中心是我们最大的终端市场，占总收入的54%。其次是企业网络占19%，运营商基础设施占12%，消费者占10%，汽车工业占5%。

GAP gross margin was 46.6%. Non-GAP gross margin was 63.9%, growing 330 basis points sequentially driven by a significantly better product mix as we had expected. Moving on to operating expenses. GAP operating expenses were $697 million, including stock-based compensation and monetization of acquired intangible assets, restructuring costs, and acquisition-related costs. Non-GAP operating expenses were $429 million in line with our guidance. These results reflect the successful completion of our fiscal 2024 cost reduction plan we had outlined at the beginning of the year. GAP operating margin was negative 2.3%, while non-GAP operating margin was 33.8%. For the fourth quarter, GAP loss per diluted share was 45%.

GAP毛利率为46.6%。非GAP毛利率为63.9%，较上一季增长了330个基点，这主要是由于产品组合的改善，符合我们的预期。接下来是运营费用。GAP运营费用为6.97亿美元，包括股票补偿和已收购无形资产的货币化、重组成本以及收购相关费用。非GAP运营费用为4.29亿美元，符合我们的指引。这些结果反映了我们在年初制定的2024财年成本削减计划的成功完成。GAP运营利润率为负2.3%，而非GAP运营利润率为33.8%。第四季度，每股稀释GAP亏损为45%。

Non-GAP income per diluted share was 46 cents, growing 12% sequentially. Now turning to our cash flow and balance sheet. Cash flow from operations in the fourth quarter was $547 million. I'm pleased to report to you our second straight quarter delivering robust operating cash flow of over $500 million. Our inventory at the end of the fourth quarter was $864 million, decreasing by $77 million from the prior quarter. Our DSO was 77 days, decreasing by a day from the prior quarter. We returned $52 million to shareholders through cash dividends. In addition, we repurchase $100 million of our stock during the fourth quarter, doubling from the prior quarter.

每股摊薄的非GAP收入为46美分，较上季度增长12%。现在我们来看看我们的现金流和资产负债表。第四季度的经营现金流为5.47亿美元。我很高兴地向您报告，我们连续第二个季度实现了超过5亿美元的强劲经营现金流。我们在第四季度末的存货为8.64亿美元，较上季度减少7,700万美元。我们的DSO为77天，较上季度减少了一天。我们通过现金股利向股东返还了5,200万美元。此外，我们在第四季度回购了1亿美元的股票，较上季度翻倍。

We expect to further increase repurchases in the first quarter of fiscal 2025. As you saw earlier today, my valve board has approved the largest repurchase authorization in our history, increasing our current plan by $3 billion, which brings our total available authorization to $3.3 billion. Our total debt was $4.17 billion. Our gross debt to a bidar ratio was 2.19 times, and net debt to a bidar ratio was 1.69 times. As of the end of the fourth fiscal quarter, our cash and cash equivalents were $951 million, increasing by $225 million from the prior quarter, fitting to our guidance for the first quarter of fiscal 2025. We are forecasting revenue to be in the range of $1.15 billion plus or minus 5%.

我们预计在2025财年第一季度进一步增加股票回购。正如您今天早些时候所看到的，我的董事会已批准了我们历史上最大规模的股票回购授权，将我们当前计划增加了30亿美元，从而将我们总共可用的授权额提高到33亿美元。我们的总债务为41.7亿美元。我们的总债务与净息税折旧摊销前利润比率为2.19倍，净债务与净息税折旧摊销前利润比率为1.69倍。截至第四财季结束，我们的现金及现金等价物为9.51亿美元，比前一季度增加2.25亿美元，符合我们对2025财年第一季度的预期。我们预计收入将在115亿美元加减5%的范围内。

We expect our gap gross margin to be in the range of 44.5% to 47.2%. We expect our non-gap gross margin to be in the range of 62% to 63%. We are forecasting a sequential decrease in non-gap gross margin due to lower revenue impacting fixed cost absorption. Looking forward, we expect that the overall level of revenue and product mix will remain key determinants of our gross margin in any given quarter. For the first quarter, we project our gap operating expenses to be approximately $676 million. We anticipate our non-gap operating expenses to be approximately $455 million. This forecast includes a step up from the prior quarter due to typical seasonality in payroll taxes and employee salary merit increases. For the first quarter, we expect other income and expense, including interest on our debt to be approximately $48 million. We expect our non-gap tax rate of 7% for the first quarter. We expect our basic weighted average shares outstanding to be $866 million and our diluted weighted average shares outstanding to be $875 million. We anticipate gap earnings per deli to share in the range of a loss of $0.18 to a loss of $0.28. We expect non-gap income per deli to share in the range of $0.18 to $0.28. Operator, please open the line and announce Q&A instructions. Thank you. But we will now begin the question and answer session. To ask a question, you may press star than one or you touched on phone. If you're using any speaker phone, please pick up your handset before pressing the keys. To withdraw your question, please press star than two. In the interest of time, please restrict yourself to one question only. If you have additional questions, please rejoin the queue.

我们预计我们的差异毛利率将在44.5%到47.2%的范围内。我们预计我们的非差异毛利率将在62%到63%的范围内。我们预测非差异毛利率将出现顺序下降，因为较低的收入影响了固定成本吸收。展望未来，我们预计整体收入和产品组合在任何一个季度仍将是我们毛利的关键决定因素。对于第一季度，我们预计我们的差异营业费用约为676万美元。我们预计我们的非差异营业费用约为4.55亿美元。这一预测包括由于薪酬税和员工工资晋升的季节性增加。对于第一季度，我们预计其他收入和费用，包括我们的债务利息约为4800万美元。我们预计第一季度的非差异税率为7%。我们预计我们的基本加权平均流通股数为8.66亿股，稀释后的加权平均流通股数为8.75亿股。我们预计每份悲伤的差异收入将在亏损0.18美元到0.28美元的范围内。我们预计非差异每份收入将在0.18美元到0.28美元的范围内。接线员，请打开线路并宣布问答说明。谢谢。我们现在开始问答环节。要提问，请按星号再按一键或触摸电话。如果您使用扬声电话，请在按键之前把电话握在手中。要撤回问题，请按星号再按二。为了节省时间，请限制提问一次。如果您有其他问题，请重新排队。

At this time, we'll pause momentarily to a Simbar roster. Our first question will come from Ross Seymour with Deutsche Bank. Please go ahead. Hi guys. Thanks for the question. It's clearly kind of tail to cities. The data center and AI side is going to be really strong. The rest have been not so much. What do we just get the bad news out of the way first? The magnitude of the drops next to your data center are kind of shocking. Can you just walk us through how much of that is something that is not going to come back? Some of the SUSN 5G, et cetera, versus what do you view as just taking the cyclical medicine and then a snapback should ensue soon thereafter? Great. Thanks, Ross. Yeah, definitely a tail of two cities. On the carrier enterprise and consumer side, the way to think about it is sure that the drops are pretty steep in Q4 and Q1. We're definitely going through a cyclical downturn in the industry. You've been doing this a long time. So if I, we've seen that happen and that's what we're going through. The way to think about both of those businesses is at their peak together, they were about two and a half billion in revenue. This would sort of be during the pandemic and some of the supply chain issues that went on. You can now see we're shipping well below that. So I said my prepared remarks. Both of these are very solid businesses. Ross and Marvell both will recover to greater than one billion in revenue. Over time, the question is when. Remember as well, within these businesses, these are very long product life cycles, typically like seven years in production. These are designs in some cases we won three or four or five years ago, some of we just wanted a year or two ago. So we still get about these businesses, but they are going through some demand softness and some inventory correction. But we expect to see that behind us and to be very specific, none of this is due to any business that's not quote coming back or share loss. And in fact, when things recover back to a normalized run rate, we do have Marvell product growth drivers in both of those segments, carrier enterprise to drive growth going forward. So we're just managing through it in the short term.

现在，我们将暂停一下，继续讨论Simbar的人员名单。我们的第一个问题将来自德意志银行的Ross Seymour。请继续。嗨，各位。感谢提问。显然，市场呈现两极分化态势。数据中心和人工智能方面将会非常强劲。而其他方面表现则不尽如人意。我们先把不好的消息说出来吧。贵公司数据中心的下滑幅度有点令人震惊。能否请您详细解释一下，有多少部分是无法恢复的，比如一些5G等项目，以及您认为是短期调整、随后会出现回弹的因素？非常感谢。是的，Ross。确实可以说是两情相悦。对于运营商、企业和消费者业务，我们可以这样想：在第四季度和第一季度，下滑幅度相当大。我们确实正在经历行业的周期性低迷。我们做这个行业已经很长时间了，我们也经历过这种情况。可以这样理解这两种业务：它们在巅峰时期的销售额约为25亿美元。这可能是在大流行病和一些供应链问题发生时期。您可以看到我们的销售额现在远远低于此。在我之前的发言中提到过，这两个业务都是非常稳固的业务。Ross和Marvell都会恢复到超过10亿美元的销售额。问题在于何时。还要记住，在这些业务中，产品寿命周期非常长，通常有七年的生产周期。这些设计在某些情况下是三、四甚至五年前进行的，有些则是一两年前进行的。所以我们对这些业务还是很有信心的，尽管它们正经历一些需求疲软和库存调整。但我们期望这些问题会很快解决，更具体地说，这一切都不是因为任何业务不会“回归”或丢失份额。事实上，当事情恢复到正常运行水平时，我们有Marvell产品的增长驱动因素，可以推动运营商企业业务的增长。所以我们只是在短期内管控这种情况。

Thank you. The next question will come from Matt Ramsey with TD Cowan. Please go ahead. Thank you very much. Good afternoon, guys. I guess a kind of a two part question on the custom silicon business. The first part of it, Matt, you gave us some good color in your script as to how you see 200 million exiting the year and exceeding the 800 million for next. And you kind of referenced the billion dollars at scale. And I just wonder if you could maybe square the rest of that circle with that just for business you've won today for fiscal 26 or is there more to come? And I guess the second part of the question, my observation is you guys probably have a more shop's on goal for custom silicon and be each one of the shops on goal could be potentially a very large or larger than expected piece of business given what's happening in the AI trend. I guess my concern is as you evaluate those opportunities when those programs will be shipping two, three, four years in advance and trying to figure out how those programs would sort of align with the dominant player in the spaces road map two or three years out in the pace of that innovation. Like how do you guys evaluate the potential for the size of the business when lots of shops on goal but the probability of each of those shops on goal being successful might be hard to gauge given how quickly the industry's moving. Hopefully that makes sense. I'm just trying to give an idea of how you're scaling the business and taking on orders given all the volatility and rapid technology advancements in the space. Yeah, got you Matt. Okay, let me just tackle them both. On the first one, yeah, super excited about the ramp we're seeing now on the custom silicon programs we want a couple of years back. So we're shipping a Q1 on both programs. Fantastic. We gave some color and the prepared remarks on the exit rate, you know, being 200 million plus. You know, I don't want to cap that at this point, but that's, you know, but certainly that's sort of the way to think about it as the floor and then we go from there. So that would imply obviously in fiscal 26 a much larger number than the 800 million we had called out. And again, I think it's still dynamic and still early, but we're very excited from the bullish forecast we're seeing from our customers. So 26 looks very strong from the programs that we've won.

谢谢。下一个问题将由TD Cowan的马特·拉姆齐提出。请讲。非常感谢。各位下午好。我想问一下定制硅业务的问题，包括两个部分。首先，马特，在你的讲话中提到了你对今年过去时的200亿和明年800亿的色彩，你也提到了规模化的十亿美元。我想知道是否你已经赢得了今年的业务，还是还有更多的机会？第二个问题，我觉得你们可能对定制硅有更多的目标，每个目标都可能比期望的业务规模更大，鉴于AI趋势的发展。我的担忧是当你们评估这些机会的时候，这些项目将在未来两三四年内发货，要弄清楚这些项目如何与该领域的主导者的未来产品规划相吻合，以及创新的速度。你们如何评估业务规模的潜力，当有很多目标时，但每个目标的成功概率可能很难估计，因为行业的发展速度如此之快。希望这有意义。我只是想了解你们如何规模扩大业务，接受订单，鉴于该领域的波动性和技术进步迅速的情况。好的，明白了马特。让我来回答这两个问题。首先，我们对几年前赢得的定制硅项目的起步速度感到非常兴奋。我们计划在两个项目上均在Q1发货，这非常棒。我们在发言中提到了出货率的情况，超过2亿美元。我目前不想设定上限，但这可以作为底线，然后我们从这里发展。这意味着在26财年，业务规模将远远超过我们之前预计的8亿美元。再次强调，目前情况还在发展阶段，但从客户给我们的乐观预测来看，我们非常兴奋。从我们赢得的项目方面来看，26财年看起来非常强劲。

And we should be way ahead of the plan that we had articulated, you know, a ways back. On the second question, yeah, I don't think I've ever seen more design when activity, you know, in my career as right now in AI, custom silicon, networking, optics, you know, you name it, this whole transformation that's going on in data center architectures is creating this massive opportunity from Marvell, specifically on the custom portion of it. I mean, we're talking about a TAM creation that's going to be in the tens of billions of dollars range.

我们应该远远超出我们之前提出的计划，你知道，之前提出的计划。至于第二个问题，是的，我认为在我的职业生涯中，从未见过像现在这样的设计活动，包括人工智能、定制芯片、网络、光学等等。数据中心架构的整个变革正在为Marvell创造巨大的机会，特别是在定制领域。我指的是，我们正在谈论一个可能达数百亿美元的市场机会。

And we'll talk more about that at our AI day, but very significant sort of opportunity that's emerging in front of us. And that being said, I do this very complimentary to the merchant leader in this space. I think both are have a place given the workloads that are required, given the scale of computing that's needed. And I don't think it's a zero sum game. I've been saying this for a while.

我们将在我们的AI日活动中更深入地讨论这个问题，这是一个非常重要的机会正在出现在我们面前。话虽如此，我认为这与这个领域中的商家领袖是非常互补的。我认为两者都有各自的位置，鉴于所需的工作负载和所需的计算规模。我认为这不是一个零和游戏。我已经说了很久了。

I think both segments, the merchant side as well as the customs side are going to grow to be very enormous PAMs. And so yeah, we're right in the mix on all the major opportunities and programs. We have assembled an incredible team, an incredible portfolio of technology. We announced today our continued partnership with TSMC with a very full and robust roadmap of IP and technology to specifically address AI and accelerate a computing applications for the next generation. So that's got a lot of excitement with the customers as well.

我认为商家端和海关端两个部分都会成长为非常巨大的商机。所以是的，我们正在参与所有重大机会和项目。我们已经组建了一个令人难以置信的团队，一个令人难以置信的技术组合。今天我们宣布与TSMC保持持续合作，拥有一个非常全面和强大的IP和技术路线图，专门用于处理人工智能和加速下一代计算应用。这在客户中引起了很多兴奋。

So yeah, overall, we're very bullish. And we think the whole, all the boats are going to lift on this one and certainly from Marvell creates a huge new TAM opportunity that we really didn't have just a few years to go. Thanks, Matt. Thank you. Yeah. The next question will come from Christopher Roland with Susquehanna. Please go ahead.

所以，总体而言，我们非常乐观。我们认为整个行业都会受益，并且从Marvell来看，我们真的看到了一个巨大的新市场机会，而这在几年前还并不存在。谢谢，马特。谢谢。下一个问题将由苏斯考哈纳的克里斯托弗·罗兰提出。请发言。

Hey, thanks guys. And I guess first of all, Matt, thanks for giving that the custom ASIC opportunity numbers again. I think that means probably means you guys have a pretty strong pipeline. I would love to drill down on that a little bit more. So I guess first of all, maybe you can talk about these opportunities, training versus inference, how you see that versus perhaps just compute. And then what's kind of the, do you have a secret sauce that's landing these? Like your competitor has really used there at the time, leading edge. And then the third is IP as a driver of those wins. Is there something that you have some special sauce that are winning these? Thanks.

嘿，谢谢大家。首先，Matt，再次感谢你提供定制ASIC机会的数字。我想这可能意味着你们有一个相当强大的销售渠道。我想更深入了解一下这方面。首先，也许你可以谈谈这些机会，训练与推断的区别，以及你如何看待它们，也许还有计算方面。其次，你们是否有一些秘密武器来赢得这些机会？就像你的竞争对手一直在使用的领先技术。第三，IP是否是这些胜利的驱动力？你们是否有一些独特的技术来赢得这些机会？谢谢。

Yeah. Thanks, Preston. Great to hear from you. And yeah, hopefully some of the custom numbers were helpful. You know, investors last year in this year was a lot of interest in sort of what the size of that was and now that we've got the visibility, it's great to start articulating where we think that is. I think on your second sort of piece of your question around training versus inference and compute, you know, at this point, I would just put it in a very large bucket of what I'm calling, you know, deck of billions in TAM creation. I don't know that we're online this call, certainly prepared to slice it out.

是的。谢谢，普雷斯顿。很高兴听到你的声音。希望一些定制的数字对你有所帮助。去年和今年投资者对这方面非常感兴趣，现在我们有了可见性，开始表达我们认为的规模是很好的。至于你提到的关于训练与推断以及计算的第二部分，我会将其放入我所说的“数十亿市场的桶”中。我不确定我们准备在这次通话中详细说明。

And I don't even think we know, you know, where this is going to be in three to five years relative to that exact split. But I would say the opportunity set for us crosses all of those applications. Okay. And then relative to where we are in terms of our technology, our competitiveness, I mean, it's pretty astonishing if you think about it. When we won the designs, we won Chris at five nanometer. That was really our first time with as Marvell to compete in this segment, especially in the data center.

我甚至不认为我们知道，在未来三到五年内，相对于这个确切的分裂，会发生什么。但我想说，对于我们来说，机会的范围涵盖了所有这些应用程序。好的。然后就我们的技术、我们的竞争力而言，我觉得这相当令人吃惊。当我们赢得设计时，我们赢得了五纳米层的Chris。这真的是作为马维尔公司在这个领域竞争的第一次，特别是在数据中心方面。

The origins of this business go back to our purchase of a VARRA in 2019. We pivoted that roadmap during the pendency of the close and right after from 14 nanometer technology all the way to five. And even though it was our first time out, you know, CERDIS was competitive, packaging technology, interconnect, manufacturing scale, strategic partnerships up and down the supply chain. And that enabled us to win a significant share of basics in business, which is now coming to fruition here in fiscal 25 and 26.

这家企业的起源可以追溯到我们在2019年收购VARRA。在交易结束前和之后，我们调整了技术路线，从14纳米技术一直迈向五纳米。尽管这是我们第一次尝试，但CERDIS在封装技术、互联、制造规模和供应链上下游的战略合作中具有竞争力。这使我们赢得了基本业务的重要份额，现在在2025年和2026年财年即将实现。

We followed that up with our three nanometer platform, which has now been a big part of the opportunity set in the funnel we're competing in today. We're in a completely different position now relative to five nanometer because we had the learnings, we had the readiness. And now we're really leaning in, okay, in terms of being, you know, a first mindset around not just nanometers, but I did I interconnect packaging, 30 technology, optics, and really in chiplets and thinking about how to stitch all this together.

我们紧接着推出了我们的三纳米平台，这现在已经成为我们正在竞争的机会链中的一个重要组成部分。相对于五纳米，我们现在处于完全不同的位置，因为我们有了经验教训，我们也做好了准备。现在我们真的在积极进取，在不仅仅是关于纳米米数的思维上，还有互连封装、30技术、光学，以及在芯片组和考虑如何将所有这些连接在一起。

And on top of that, you know, with the scale of Marvell and our strategic partnerships, we really look to our customers like an incredibly solid trustworthy long term partner for their needs to really help them realize their AI silicon ambitions. So that's where we are today. I mean, we did great on five. We're going to do great on three, but we're and we're going to do great, you know, in the future. Thanks. Congrats. Thanks Matt. Yeah. The next question will come from Quinn Bolton with Needham and Company. Please go ahead. Hey guys, I'm going to follow up on the cloud. I was a sick question as well, but I guess I'm coming at it from a margin perspective, Matt. You know, you look at some of these programs on the cloud compute side to the extent that they integrate high bandwidth memory. It certainly does nice things to the ASP, but there's also a pretty significant cost that you may have to pass through. And so I'm wondering, can you talk about the gross margins on some of these ASIC platforms? How does that compare to the corporate average? And as you ramp, especially if cloud ASICs get to be similar in size to the optics, which I know are good margins, you know, how do you see the margin mix changing with this now very, very strong ramp of cloud ASIC programs? And then I've got a quick follow up if I can sneak it in. Sure. Yeah. I mean, on the way we've talked about that business actually since the era in 2019 is that it would always, due to the nature of custom business, be at a lower gross margin overall than the company average and the target. At the same time, because of the NRE and nonrecurring engineering that we receive as part of the customer funding of these programs, the operating margins of this business tend to be very competitive and over time in line with our company targets, when you start talking about these very, very large programs, you know, you've got opportunity, even the volume and scale on the OM line to really drive a lot of leverage in the model. But the GMs, just due to the nature of that business model, will always be, you know, a little bit lower than the total.

此外，您知道，以Marvell的规模和战略合作伙伴关系，我们确实把自己视为客户非常可靠、值得信赖的长期合作伙伴，以满足他们的需求，真正帮助他们实现其人工智能硅芯片的愿望。这就是我们今天的地位。我是说，我们在五个方面表现得很出色。我们将在三个方面表现出色，但在未来我们也会表现出色。谢谢。恭喜。谢谢马特。是的。下一个问题将由Needham and Company的Quinn Bolton提出。请继续。 嘿伙计，我要就云端再跟进一下。我也问了一个类似的问题，但我想从利润率的角度来看，马特。你知道，在云计算方面，一些项目融合高带宽内存肯定会对ASP产生积极影响，但也会有相当大的成本需要传递。所以我想知道，你能谈谈这些ASIC平台的毛利率吗？它们与公司平均水平相比如何？尤其是在规模扩大，特别是云ASIC与光学器件规模趋于相似时，我们如何看待这种非常强劲的云ASIC项目的利润率组合变化？然后我有一个简短的跟进问题如果可以问的话。 当我们自2019年开始谈论这个业务以来，我门一直预计由于定制业务的性质，这些业务的总体毛利率将始终低于公司平均水平和目标。同时，由于这些项目的客户资助中包含的NRE和非重复工程费用，这些业务的运营毛利率往往非常有竞争力，并且随着时间的推移符合公司的目标。当你开始谈论这些非常大型项目时，你有机会在运营线上获得很高的杠杆作用，但由于业务模式的性质，毛利率总是会略低于整体水平。

I would say though, at the same time, because the sort of follow on sometimes is we'll see if that happens, and what happens to the overall company gross margin profile. Remember, we still have very strong gross margin, merchant businesses and storage and networking, automotive. Some of those were even undershipping demand right now. So as the year plays out, some of those businesses will come back and that should be a little bit of a margin offset to some of the custom stuff. So we're still managing to our long-term target model, but yeah, the cloud stuff, especially at these volumes certainly will have lower gross margin. Yeah, a quick one for the second. We can do it otherwise we got it. Yeah, quick one on a second.

我想说，在同一时间，有时候会出现后续的情况，我们会看看那是否发生，并且整个公司的总毛利率会怎么样。请记住，我们仍然拥有非常强大的毛利率，包括商业和存储网络、汽车行业。一些产品甚至现在供不应求。所以随着今年的发展，一些业务将会恢复，这应该会稍微抵消一些定制产品的利润。所以我们仍然在按照我们的长期目标模型进行管理，但是是的，云端产品，特别是在这些规模下，肯定会有更低的毛利率。是的，关于第二点的简短说明。我们可以做，否则我们已经明白了。是的，关于第二点的简短说明。

You mentioned sort of ramping AECs at multiple hyperscalers this year. Just wondering if you might be able to give us some sense. Is that meaningful? Any sense on the magnitude of that ramp? Yeah, I think what I'd say is it's absolutely a real market. We felt that way for some time, even back when we acquired NCI, you know, that was sort of shot on goal, we thought was possible. I think the big news is that we're qualifying at multiple hyperscalers now. We're starting to go into production this year. We'll get a very nice solid kind of more full yearish ramp in fiscal 26, but it's definitely an incremental, you know, additive category to Marvell. And it really leverages our high-speed DSP, you know, our high-performance DSP and PAM technology, which is really now in selecting in this wave of AEC before it was based on the older modulation techniques where we didn't participate. So yeah, really excited about it, but let's let it play out for a few more quarters. Thanks.

你提到今年在多个超大规模云服务提供商处出现了AECs的逐渐增加。想知道你是否能够给我们一些想法。这是否意义重大？这个增长的规模是否可预见？是的，我想说的是，这绝对是一个真实的市场。我们一直以来都有这样的感觉，甚至是在我们收购NCI之前，我们就认为这是可能的一击进球。我认为最重要的消息是，我们现在正在多个超大规模云服务提供商处进行资格认证。今年我们将开始投入生产。到财年26年，我们将会有一个非常好的稳固的增长，但这绝对是马维尔公司的一个额外的类别，并且真正利用了我们的高速DSP、高性能DSP和PAM技术，这些技术现在已经在选择这一波AEC中得到应用，而在之前是基于旧的调制技术，我们没有参与。所以，我们对此感到非常兴奋，但让我们再等待几个季度看看它的表现。谢谢。

Thanks, man. The next question will come from Harsh Kumar with Piper Sandler. Please go ahead. Yeah, hey, guys. Thanks for letting me ask the question. Matt, so AI is hot. There's no other way to put it. You are in kind of a pole position with your optical piece, field in five-piece. Can you give us a sense of the magnitude of the size of that business, either quarterly or last year? Anything you can throw at us that helps us size it and also kind of what kind of growth rate you expect to see from this business? And then Matt, when you say the bottom is, you know, from some of the pieces like consumer and networking, the bottom will be this one key time frame. What piece do you think will come off the bottom and too few? Or do you expect all the pieces to come off the bottom and too few?

谢谢，伙计。下一个问题将来自Piper Sandler的Harsh Kumar。请继续。嗨，伙计们。感谢你们让我提问。马特，人工智能很火热。没有其他方式来表达它。你的光学部分处于一种有利位置，是五块中的一块。你能让我们感受到这个业务的规模有多大吗，无论是季度还是去年？任何你可以告诉我们的信息，让我们了解它的规模，以及你期望从这个业务中看到什么样的增长率？另外，当你说底部时，你知道一些部分像消费者和网络，底部将会在一个关键的时间段到来。你认为哪个部分会率先脱离困境？或者你期望所有的部分都会很快脱离困境？

Okay, let me do this. I'll take the first one and I'll let Willam take the second one so I can take a breather and he can also answer your question. Yeah, on the first one, I think we gave some pretty good color. I mean, if you think about it, the Q4 exit rate on AI was well north of 200 million and the bulk of that, as we said, was in optics. So if you just, and then you can start extrapolating, you know, well, geez, then you've got to add in how much revenue is Marvell getting on the standard cloud side in optics. And that's another very nice chunk. And then you've got some of the stuff that we have that shows up in the carrier side, which you're going to buy now on the coherent DSPs. There's some ASICS that we have. So the overall in five business, if that's what you're asking, since we bought it has clearly outperformed the deal model and has just become an incredibly strategic asset for us both in terms of just the technology we picked up, but the team, the synergy with the other tech portfolio, the other product lines we have. And so just super positive about that. And it just looks like that whole opportunity is going to be much larger than I think we are in five thought just a few years back. Will you want to take off, take the second part of it? Yeah, thanks, man. Hey, Harsh. Yeah, so we're really working with customers to focus on Q1 being the bottom. Really confident that that's the bottom. And then we see growth resuming in the second half across enterprise networking, carrier and consumer. So yeah, really just trying to make sure that we put this behind us really quickly and see growth in the second half. Thank you.

好的，让我来做这件事。我会处理第一个问题，让威廉来处理第二个问题，这样我就可以喘口气，他也可以回答你的问题。是的，在第一个问题上，我认为我们提供了一些很不错的信息。我是指，如果你想一想，人工智能在第四季度的增长率远远超过了2亿美元，而且我们说过，其中大部分是在光学方面的。因此，如果你仅仅考虑一下，然后开始推算，你知道，哦，那么你就得加上Marvell在标准云光学领域的收入有多少。这是另外一个非常大的部分。然后你还要考虑我们在运营商领域有一些产品，比如你现在要购买的相干DSP。还有一些我们拥有的ASIC。总之，在我们收购这个业务以来，它在五个业务中的整体表现显然超出了交易模型，并且已经成为了对我们极具战略意义的资产，无论是我们获得的技术，团队，与其他技术组合的协同效应，还是我们已有的其他产品线。所以我们对此非常乐观。整个机会似乎会比我们几年前想象的要大得多。威廉，你想来处理一下第二部分吗？ 是的，谢谢，伙计。嗨，哈希。是的，我们正在与客户合作，着重于将Q1确定为底部。我们非常有信心认为那是底部。然后我们看到在第二半年各个领域，包括企业网络，运营商和消费者领域，增长将继续。因此，我们真的在努力确保我们能迅速摆脱这个困境，并在下半年实现增长。谢谢。

The next question will come from Vivek O'Rear with Bank of America. Please go ahead. Thanks for taking my question. Mad one more on electro optics. I think near term it seems in Q1 there's probably a little bit of a breeder after several strong quarters. But the more important question is that to be assumed that your electro optics that is related to AI should grow somewhat proportional to the growth in accelerators. So for example, if you look at accelerator growth this year, I've seen various numbers between 50 to 100 percent year on year growth. So should the AI part of your electro optics grow kind of commensurate with that or is there something different?

下一个问题将来自美国银行的维韦克·奥里尔。请提出您的问题。谢谢您回答我的问题。再问一个关于光电子技术的问题。我认为短期来看，在第一季度之后，可能会有一点放缓，因为前几个季度表现强劲。但更重要的问题是，您的光电子技术是否与人工智能相关，应该与加速器的增长大致成比例增长。例如，如果您今年看加速器的增长，我看到各种不同的数字，从50%到100%年增长率不等。那么，您的光电子技术中的人工智能部分是否应该与此相当，还是有什么不同？

And then when does 1.6 to 1.60? Sorry, when does that start to play in your electro optics business? Yeah, thanks. Well, I think it depends on how you, how you, but the definition of breeder you use. I mean, basically it's ramped up just so significantly, right? The electro optics business Q2, Q3, Q3, Q4, and staying strong, you know, in Q1. Maybe it's a breeder from the sequential growth point of view, but we still have not seen that slow down. And then on the, let's see, I got your second one, your third one was on 1.6 T. I'm going to come after your second one a second. That is going to ramp later this year. That's gone really well. The quals and the product bring up, we announced the OFC last year and a lot of demand and interest.

然后1.6到1.60是什么时候？抱歉，这会在您的光电业务中开始发挥作用吗？是的，谢谢。我认为这取决于您使用的孵化器的定义。我是说，基本上它的增长非常显著，对吧？光电业务在第二季度、第三季度、第四季度都有增长，并且在第一季度保持强劲，可能从顺序增长的角度来看可能有点慢，但我们仍然没有看到放缓的迹象。然后第二个问题是关于1.6 T的，我会在回答第二个问题后再回答。这个将在今年晚些时候加速。这进展非常顺利。我们在去年的OFC展会上宣布了资格和产品推出，受到了很多需求和兴趣。

And then sorry, your second question on AI? Yeah, so should your electro optics grow kind of proportional to the growth in accelerators? Yeah. Yeah, yeah, sorry. Yeah, the accelerator one. Yes. So yeah, for sure. The way we think about it is the that business year over year should grow in line with accelerator growth, accelerator unit growth. That should, we think we do it as very correlated. Obviously, there's some timing issues in terms of supply chain and things like that. But that's a, that's a simple way to think about it. And, you know, everyone's got a little bit of a different model at this point about what that number is. But our view is we're, we're highly correlated to accelerator shipments. It's in our optics business. Yeah.

对于人工智能领域的第二个问题对不起？是的，所以你的光电设备增长应该与加速器增长成比例吗？是的。是的，对不起。是的，加速器那个问题。是的。所以是的，当然。我们认为，我们每年的业务增长应该与加速器单元增长保持一致。我们认为它们非常相关。显然，在供应链方面可能存在一些时间问题等等。但这是一个简单的思考方式。你知道的，每个人对这个数有不同的模型。但我们的观点是，我们与加速器出货高度相关。这与我们的光学业务有关。

The next question will come from Gary Mowgley with Wells Fargo. Please go ahead. Hey guys, thanks for taking my question. Is it a way to think about the win or hit rate or your custom basic business when engaging with prospective customers in the future? How should we think about the increasing competitive environment from the arm ecosystem, arm specifically with more versions of the new verse. It's a total design ecosystem. It's a, it's a compute subsystems and as well all the ASIC design community, you know, first of all, how do you feel about arms essentially becoming more of a competitor? And then as well, you know, how do you think about the way in which you'll compete against that and succeed? Thank you. Yeah, thanks Gary. I think, look, I think there's a, there in this market today, there's, there's obviously a lot of excitement because of the opportunity in front of us.

下一个问题将来自富国银行的加里·莫格利。请你发言。嘿伙计们，谢谢你们接受我的问题。在未来与潜在客户打交道时，考虑到获胜率或命中率，或者您的客户基本业务的方式是什么？我们应该如何看待来自ARM生态系统的竞争环境不断增加，特别是随着新版本不断推出。这是一个完整的设计生态系统，涵盖了计算子系统以及所有的ASIC设计社区，首先，你怎么看待ARM实质上变得更具竞争力这一点？其次，你如何考虑你将如何与之竞争并取得成功？谢谢。是的，谢谢加里。我想，在当今的市场中，由于摆在我们面前的机会，显然有很多兴奋之处。

I mean, the way that we're working is there's a number of companies that are partners, solution providers, et cetera, that may or may have their, their own offering or not, whether it gets taken up or not is, we'll have to see what where we come together really is, we pull it all together. We're able to actually deliver with Marvell intellectual property, design methodology and techniques, RIP and our know-how, pull together with our customers, RTL and IP and partners, the total solution, which means we actually lay the chip out, we package it up, we manufacture it in high volume, we, we QA it, we test it, we yield it, we drive reliability, we drive cost improvement and we drive it through the cycle. And that is a very different business model than providing a piece that goes in. And so, ARM has been our partner for a long time, we use them in our products, you know, kind of all over the place. And as they evolve and others evolve, we'll, we'll, we'll figure that out too.

我的意思是，我们的工作方式是有许多公司是合作伙伴、解决方案提供商等，它们可能有自己的产品，也可能没有，我们需要看到的是，真正让我们走到一起的是，我们将所有资源整合在一起。我们能够利用Marvell的知识产权、设计方法和技术，以及我们的专业知识，与客户、RTL和IP以及合作伙伴共同打造整体解决方案，这意味着我们实际上完成了芯片的布局、封装、大规模生产，并进行质量保证和测试，保障可靠性，降低成本并推动整个生命周期。这种商业模式与只提供一个零部件完全不同。因此，ARM一直是我们的合作伙伴，我们在产品中使用他们，并将他们应用到各个地方。随着他们和其他公司的发展，我们也会去适应和发展。

But in the end, it comes down to, we believe for these large volume mission critical big compute silicanship, it's going to require somebody like a Marvell with the manufacturing scale, the technique, the design techniques and know-how to really, to really execute it. And so, we haven't seen any change there. And in fact, I think at the sort of three nanometer node we're at and beyond, it's going to be even more critical to have a partner who's got your back, who can help you get to production quickly and spin derivatives quickly, which is now increasingly looking like what's going to be needed, you know, more SKUs, higher, you know, faster beat rate in terms of when products are released, and then obviously ramping them very hard and quickly given the competitive environment. Thanks, Matt.

但最终，我们相信对于这些大容量、关键任务、大型计算芯片，将需要像 Marvell 这样具有制造规模、技术、设计技巧和专业知识的公司来真正执行。因此，我们没有看到任何变化。事实上，在我们目前所处的三纳米节点以及更高节点，拥有一个能够帮助您迅速投产并快速推出衍生产品的合作伙伴将变得更加关键，这似乎是未来所需的，更多型号、更快的发布速度，然后在激烈的竞争环境中快速而艰难地推广产品。谢谢，Matt。

The next question will come from Harlan Sir with JP Morgan. Please go ahead. Yeah, good afternoon. Thanks for taking my question. Matt, you mentioned initial shipments of your AI ASIC programs. Can you just clarify? Because I know last you updated us. These programs were in qualification. So have you guys passed qual on both these programs? And this is sort of the initial start of the full production ramp, or maybe you're still in qual, but you've got enough line of sight to passing the qual, just giving you're at the tell-ends of this process. And maybe more importantly, have you guys secured the follow-on AI programs for these two initial projects? Yeah, thanks for the question, Harlan. So, yeah, we are in the initial start of the production ramp on both products. And then as far as the follow-ons, like I said, the opportunity funnel we see across all of the various opportunities right now is significant. And we're involved in, we believe, we think, every single one of them.

下一个问题将来自摩根大通的哈兰先生。请您提问。是的，下午好。感谢您答复我的问题。马特，您提到了人工智能ASIC项目的初始发货。您能否澄清一下？因为我记得您上次更新我们时，这些项目还在资格认证阶段。您们是否已经通过了这两个项目的资格认证？这是否是全面生产推进的初始阶段，或者可能您仍在进行资格认证，但已经有足够的线索可以通过资格认证，因为您已经接近流程的尾声。更重要的是，您们是否已经为这两个初始项目获得了后续的人工智能项目？谢谢您的问题，哈兰。是的，我们目前正在两款产品的生产阶段初始推进阶段。至于后续项目，就像我说的，我们目前在各种各样的机会漏斗中看到的机会数量是相当大的。我们参与了，我们相信，每一个机会。

Yeah, and there'll be more to come sort of at our AI day, but I would just say our our three nanometer funnel and our three nanometer hit rate and design win rate is very encouraging. And it really gives us just tremendous confidence in where this business is headed. It also has a side benefit by driving this advanced technology for the custom basic side, is it's pulling along the technology development that benefits all the other businesses in Marvel, like our high-performance switching, our DSPs for optics, etc. So there's actually kind of a virtuous cycle happening where being at that bleeding edge is now we're able to show our other solutions that interoperate with this custom silicon, really a best-in-class road map there. But more on the overall strategy and opportunity size of the AI day. Let me give you some of the reports, right? Thank you, Matt. Yeah.

是的，在我们的AI日活动中将会有更多的内容，但我想说我们的三纳米产品线和设计率非常令人鼓舞。这真的让我们对这个业务的发展充满信心。通过为客户基础端推动这一先进技术，还会带来一个附带好处，就是推动了所有其他马维尔业务的技术发展，比如我们的高性能交换和光学DSP等。事实上，现在我们处于技术风口浪尖，能够展示出与这种定制硅相互配合的其他解决方案，真的是一个最佳的路线图。但关于整体战略和AI日的机会规模，我会在稍后提供更多的信息。让我给你一些报告，好吗？谢谢，马特。是的。

The next question will come from Tor Standberg with Stevele. Please go ahead. Yes, thank you. Matt, I had a question on the Inhoner gig upgrade cycle. Do you mentioned that ramping? We also mentioned 1.6 caribou, the ramping later this year. My understanding is that we're still in the early stages of the 800 gig and I'm just wondering if you expect a more broad-based 800 gig upgrade cycle before 1.6 really starts to take off or will we potentially see kind of both ramping at the same time? Yeah, I think there's three different pieces we should talk about. So the first is 1.6T. I would just call that early shipments, first volumes type of thing in the second half, end of the year, and then more next year. And that's really, I'd call the early adoption of that technology. But it's very promising because that's obviously what's going to follow. The 800 gig for AI still got tons of legs, right? And it's going to be very, very strong this year, very, very strong next year. And then there'll be some transition over time. And then I think what you're also indicating is at some point, you're going to see an 800 gig transition on traditional cloud infrastructure from either 200 to 400 gig to 800 gig. And that is also true in something we're planning for. So I don't, I think they're going to end up happening kind of all of them in parallel a little bit, right? You're going to have bleeding edge people adopting 1.6. You're going to have the bulk of the volume on AI still driving 800 gig for the next few years. And then you're going to have a transition on the traditional PAM side as well that's going to upgrade. So I think they're all going to be in production and parallel for different reasons, which is great because it just ends up being multiple customers, multiple SKUs, and kind of a rich portfolio of solutions that we're offering so that people can optimize their systems for the best TCO and the best performance that they need. Thanks, Tor. Excellent. Thank you.

下一个问题将来自Stevele的Tor Standberg。请提问。是的，谢谢。Matt,我有一个关于Inhoner gig升级周期的问题。你提到了加速？我们也提到了1.6卡帕，计划在今年晚些时候加速。我理解我们仍处于800卡的早期阶段，我想知道在1.6真正开始起飞之前，您是否预计会看到更广泛的800卡升级周期，还是我们可能会同时看到两者同时加速？是的，我认为我们应该谈谈三个不同的部分。首先是1.6T。我只会称其为初步装运，第一个批次的东西，下半年末，然后更多是明年。这真的，我会称之为这项技术的早期采用。但这非常有前途，因为显然这就是将要发生的。对于AI来说，800卡仍有很多潜力，对吗？今年和明年都会非常强劲。然后随着时间的推移会进行一些转变。您还提到的是在某个时候，您会看到传统云基础设施从200到400卡再到800卡的转变。这也是我们计划的一部分。我认为它们最终会在某种程度上同时发生，对吗？您将看到一些领先的人在采用1.6，大部分体积的AI仍在推动800卡未来几年。然后您还将看到传统PAM侧也会进行升级的转变。所以我认为它们都将同时推进并行运作，出于不同的原因，这很好，因为这最终将使我们提供的多个客户、多个SKU以及丰富的解决方案组合，使人们可以优化其系统以获得最佳的TCO和性能。谢谢，Tor。非常好，谢谢。

So we'll take our last question today from Serene Pejari with Raymond James. Please go ahead. Thank you. Hi, Matt. Just to follow up to one of the previous questions, Matt, about the custom silicon opportunity going forward. Obviously, there are four big cloud customers, hyperscale customers. And based on what we know so far, most of them seem to be investing in custom silicon either one or two chips. So it does feel like the number of opportunities are relatively small. Of course, these are very large opportunities. Just curious how you see that evolving. Do you see this continuing with one or two programs for each customer, which are multi-billion opportunities? Are you seeing spreading out or more diverse opportunities as AI becomes bigger and broader? Just want to hear your thoughts on that. Yeah, sir, the way I think about it is if you go back just a couple of years, when AI was emerging, there was one chip, one program that would happen. It would take several years. Then you'd gear up for the next one. There was definitely a serial type of approach, and that was probably fine. I think what we've seen to your point is really multiple programs now across all the key customers. And that's where I believe it. I think getting more specific, I don't really want to do that with respect to my customers, but I would just say what we hear is very much a need for each of them needing their own very differentiated, unique solutions, needing more SKUs at a much more rapid rate by far than we've seen so far.

今天我们来自雷蒙德詹姆斯的Serene Pejari的最后一个问题。请问。谢谢。嗨，马特。关于未来的定制芯片机会的问题，请继续之前的一个问题。显然，有四个大型云客户，超大规模客户。根据我们目前了解的情况，他们中的大多数似乎正在投资于定制芯片，无论是一块还是两块。因此，看起来机会数量相对较少。当然，这些都是非常大的机会。只是好奇您如何看待情况的发展。您是否认为每个客户都会继续进行一两个项目，这些项目都是价值数十亿的机会？随着人工智能越来越庞大和广泛，您是否看到机会会更为多样化？只是想听听您的想法。是的，先生，我的看法是如果回顾一下几年前，当人工智能开始兴起时，曾经只有一个芯片、一个项目会发生。这需要几年时间。然后你会为下一个项目做准备。肯定是一种串行的方法，而那可能是可以接受的。我认为我们现在看到的是很多关键客户的多个项目。我相信这就是事实。具体地说，我不想与我的客户做过多的描绘，但我只能说我们听到的需要强烈，每个客户都需要他们自己独特的、独特的解决方案，需要更多型号，远远比我们迄今所看到的要迅速。

And so I just think it's creating, I think I know it's creating just a very significant now opportunity in custom silicon that really wasn't there before in terms of the total dollars that are available, the number of chips, and then the speed that they want to go. And that's why earlier I had said, if you look at this kind of three nanometer cycle, and it's significantly larger than we saw back at five nanometer, even if you account for the fact that some of these five nanometer pans have gone up a lot because the market went up. Even if you factor that in, what we're looking at is a lot more. And I think that's just going to continue for the next few years. But sure, by design, I think any of the high volume data center applications are always going to, in any product line, by the way, always concentrate down to a few key partners. That's just the way the business works. But super exciting time. There's a lot of activity here. Thanks, Trini. Thanks, Matt. All right. Was that the last question? No, I'm not sure. Yes, sir. I'm going to pass it off. Yeah, I'm going to make some more. Oh, perfect. Yeah, thank you. Go ahead, sir. Take the floor. Excellent. Thanks. All right. So first, everybody appreciate the participation of the call today. It's a very exciting time in the semiconductor industry relative to sort of the opportunity that's in front of us. We see a huge transformation underway right now with fundamentally a complete overhaul of data centers and data center architectures. And Marvell, we've been on this journey for the last four or five years to really transition and transform ourselves into a data center company. And as you've seen from our recent results now, that is our largest end market. It's where we're putting the majority of our R&D effort. And we're positioning the company to win big here. We chose a strategy years ago to be really levered to the accelerated computing and infrastructure part of the market, which includes in the most prominent piece being AI. It's become much larger of an opportunity than we thought a few years ago, but it's a market we clearly chose to invest in. We're expecting a lot of growth in the coming year in our data center business. We're very excited about that.

因此，我认为现在出现了一个非常重要的定制硅芯片机会，这在以前是不存在的，无论是从可用的总金额、芯片数量，还是他们想要的速度来看。因此，我之前曾说过，如果你看一下这种三纳米周期，它比我们在五纳米时看到的要大得多，即使考虑到五纳米芯片市场上涨，部分涨幅很大。即使考虑到这一点，我们所看到的数量要多得多。我认为这种情况将在未来几年持续下去。但是，毫无疑问，我认为在任何产品线中，任何高容量数据中心应用程序总是会集中在几个关键合作伙伴身上。这就是业务运作的方式。非常令人兴奋的时刻。这里有很多活动。谢谢你，特里尼。谢谢，马特。好了，这是最后一个问题吗？不确定，是的，我要转交。好的，我要提出一些问题。非常感谢大家参与今天的电话会议。对于半导体行业来说，现在是非常令人兴奋的时刻，因为我们面临着巨大的机遇。我们目前所处的阶段正在发生巨大的转变，数据中心和数据中心架构正在进行彻底的改造。在马维尔，过去四五年来，我们一直在这条道路上，真正将自己转变为一个数据中心公司。正如您从我们最近的业绩看到的，这已经成为我们最大的终端市场。这是我们投入大部分研发工作的地方。我们正在使公司定位在这个领域取得巨大成功。多年前，我们选择了一种策略，将自己紧密联系到市场的加速计算和基础设施部分，其中包括AI在内。几年前，AI的机会比我们所想象的大得多，但这是一个我们明确选择投资的市场。我们期待我们的数据中心业务在未来年份中实现很大的增长，我们对此非常激动。

And some of these programs that I indicated, they're just getting started. And some of them are ramping in the second half. Some of them are sending the ramp now, but it really gives us a great setup for our fiscal 26. And kind of final couple comments, you know, I get a lot of thought about, you know, and we did a lot of work with our customers over the break this past December. And early January, I did a fireside chat with Harlan at JPM. And there was a lot of excitement after that call because we had gained confidence at that point about some of the production ramps. I would say just a couple months later now, sitting here on this call, you know, our confidence in our growth this year and the robustness of these programs has only gotten stronger and only increased. So we're very excited about where the company's positioned. I appreciate everybody's support and interest in Marvell. And I look forward to seeing everybody at the AI day. Team is working extremely hard, and they will not disappoint. So thanks, everybody. We'll see you soon. Bye. Thank you for attending today's presentation. You may now disconnect.

一些我提到的这些项目刚刚起步，有一些在下半年加速推进。其中一些目前正在进行推进，这为我们在 26 财年提供了良好的准备。最后，我想说，我们在去年 12 月的假期期间与客户进行了很多交流，还在一月初与 JPM 的 Harlan 进行了一场炉边谈话。在那次电话后，人们表现出了很多兴奋，因为我们那时已对一些生产推进的情况有了信心。我可以说，现在再过了几个月，坐在电话上，我们对今年的增长和这些项目的强劲程度的信心只会变得更强大和增加。我们对公司的定位感到非常兴奋。感谢大家对飞思的支持和关注，期待在 AI 日见到大家。团队正在非常努力地工作，他们一定不会让你们失望。谢谢大家。我们很快就会见面。再见。感谢大家参加今天的演示。您现在可以挂断电话。