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

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[ "Photos of the nude and decapitated body of a murdered hiker, sought by a writer on assignment for Hustler magazine, will not be released, a judge in Georgia ordered Wednesday. The decision came as state lawmakers considered legislation that would ban public release of graphic photos of crime victims. First Amendment lawyers say the legislation could have a chilling effect on open records requests. DeKalb Superior Court Judge Daniel Coursey issued a temporary order restraining the Georgia Bureau of Investigation from releasing \"any and all photographs, visual images or depictions of Meredith Emerson which show Emerson in an unclothed or dismembered state. Emerson's family sought the order after learning of the request for copies of crime scene photos of the 24-year-old, attorney Lindsay Haigh said. Emerson's admitted killer, Gary Michael Hilton, received a life sentence in exchange for leading investigators to her body in the north Georgia mountains on January 7, 2008, six days after Emerson disappeared. The judge's order came on the same day the Georgia House Governmental Affairs Committee unanimously passed \"The Meredith Emerson Memorial Privacy Act,\" which would prevent gruesome crime scene photos from being publicly released or disseminated, according to Rep. Jill Chambers, the bill's principal sponsor. House Bill 1322 would prevent the release of photographs of the bodies of crime victims that are \"nude, bruised, bloodied or in a broken state with open wounds, a state of dismemberment or decapitation,\" said Chambers. \"We have to walk the line between open record laws and the constitutional provisions that allow women to be able to be photographed nude or in pornography when they knowingly and willingly offer their bodies for dissemination,\" she said. \"Meredith isn't in a position to give that kind of permission to have her exploited in that kind of venue,\" Chambers said. \"We're not only protecting future victims of crime, we're protecting the integrity of what happened to Meredith.\" The bill allows credentialed journalists, lawyers and law enforcement to view such photographs at the Georgia Bureau of Investigation's headquarters, Chambers said, but not make copies of them. Hustler did not respond to a request for comment on the judge's ruling except to say that it is exploring its legal options. \"Hustler is aware of the GBI's refusal to honor its reporter's request for copies of the Emerson crime scenes photos, which were to be used in a news story about this crime. Hustler and Mr. ", "Flynt disagree with the GBI's position, and are currently exploring all legal options available to them should the decision be made to go forward with the story,\" the company said in an e-mail. Members of the state Legislature were quick to condemn the request. \"I think that the request is sickening, disgusting, vile and I think it's very, very hurtful for this family,\" House Speaker David Ralston said in a Monday press conference. Current statute prevents the release of autopsy photos without the permission of next of kin, but a \"gray area\" in the law left open the question of whether crime scene photos could be released, Ralston said. \"I am a big proponent of open government. This goes against the grain for me. But in this case, when you have these kind of photographs that depict victims of crime where there may have been sexual assault or mutilation of the body, I just think it goes beyond the pale,\" he said. \"We're going to narrow it to those situations so we don't have this kind of situation again where we pause and wonder is this something we have to release or not.\" \"Meredith was a daughter, a friend and a mentor to many. She lived life to its fullest and was taken from us deliberately and maliciously,\" her family said on www.righttohikeinc.com, the charity Web site established in Emerson's memory. \"Her family and friends live everyday with this tragedy and to know that the possibility of any images, other than those that portray the beautiful, young woman we knew, could be disclosed to the public or may" ]

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[ "bout on label use now, $100 million, $150 million globally. One of the things we try to do, Mike, is when we went into this, we wanted to go in and get to the market the fastest way we could and develop the technology. Even that took seven years, so it's been a long time. And we're looking forward to the business.\nAnd depending -- we should hopefully will come out in a very specific layout markets strategies. Those that we can release we'll talk about separately into a press release and a conference -- press conference, the days shortly following the approvals, and we'll make those announcements should they come. Now if they don't come from Europe, then we'll -- we're ready to start the IDE and then work toward the PMA approval. So we're on track.\nWe've built all that product right here in Salt Lake City, and it's very exciting for the future. The technology, the broad area of the technology is something that we'll be doing for many, many years to come.\nMike Matson -- Needham and Company -- Analyst\nThank you.\nFred Lampropoulos -- Chairman and Chief Executive Officer\nYou bet, Mike. Thank you.\nOperator\nOur next question comes from Matthew O'Brien with Piper Sandler. Your line is now open.\nMatthew O'Brien -- Piper Sandler -- Analyst\nThanks for taking my question. Afternoon, everybody. Fred and Raul, can we just start with Utah specifically? I know it's a smaller U.S. market, specifically from a state perspective.\nBut you guys there, you've had this conversation with the governor yesterday about opening things back up. I think the moratorium on elective procedures started roughly a month ago. I think it was March 23. So can you talk about what you saw? I mean, is your elective business down 70%, 80%-ish in the first three weeks of the quarter, expect things to maybe stabilize a little bit next month and then maybe get back to a little bit of growth in June? Is that a fair way to think about how the quarter can kind of play out just in Utah alone?\nFred Lampropoulos -- Chairman and Chief Executive Officer\nYes. I said that I would kind of stay on track. I would tell you that I saw the very same things that many saw in the Johnson & Johnson and some of these other reports. Our business is not seeing those kinds of declines or anywhere close to those.\n", "Raul, I'm going to let you maybe talk about this, so I can stay out of trouble, but then you can get yourself into trouble.\nRaul Parra -- Chief Financial Officer and Treasurer\nI'll give you guys some color because I think I'm going to try and dance around this a little bit, Matt, because, obviously, we want to make sure that we don't -- the reality is that there's a lot of variables, and I'll get into those here in a minute. But I think if you look at our OEM business, which is roughly 10% of our business that seems to be stable, OK? So you can pull that off the table from whatever you projected for that. I think the Nordics is around a $20 million business for us. That seems to be either stable or just a little bit above what we forecasted.\nSo that's stable business. China, you guys know, is about 11% of our business. That seems to be coming back a little bit, right? But Fred mentioned it. There was news today that maybe things are picking up again.\nSo that's -- and I think the hard part about this is that you've got China which gives us a very good footprint of what to expect. The problem is that the rest of the world is not going to act like China, we don't think, because, one, the government in China can force certain narratives and certain processes. What you have with the rest of the world is that you've got individual countries at different parts of the curve. You've got different states here in the U.S.\nat different parts of the curve. You've got countries and states that have different policies, and then you have the added component of patients and how they're going to react to either, a, not wanting to go to the hospital or going to the hospital. And so it's just -- there's just a ton of moving parts, and so it's hard to kind of give you anything more than that.\nFred Lampr" ]

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

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[ "ndly, post the pandemic there is a permanent shift in how people perceive travel with a propensity to travel being much higher, and experiences becoming even more important. Thirdly, there is also a secular uptick in the online buying behavior, which bodes very well for us as most segments of the Indian travel industries have traditionally had low online penetration.\nLastly, and most importantly, India is still an under penetrated travel market with a huge scope of growth. Some of the factors favoring these growth trends are expansion of infrastructure, increasing per capita income, increasing disposable incomes, and higher willingness to travel and book online among the young working population. As per the Ministry of Civil Aviation estimates, Indian aviation will become world's third largest aviation market by 2024. Development of new airports, highways, and addition of hotels will help grow domestic tourism many fold in coming years.\nAlmost all the airlines are placed orders for new planes over the years. On the other hand, few hospitality chains have also announced their expansion plans which should add to capacity and fuel domestic travel growth. As a comprehensive travel service provider, we hope to leverage these macro growth trends. Let me now talk about the performance in the key travel segments.\nAnd I would then share the prospects on some of the future growth areas both on the supply side and demand side. Coming to business segments. In our air business, we continue to maintain our leadership position and market share. We are recovering faster than the market.\nDuring the quarter we witnessed over 90% recovery as compared to pre-pandemic levels. This is majorly on account of travel demand opening and more people traveling during the summer holiday season. I talked about high air fares earlier. This has affected recovery momentum to some extent, leisure destinations like Srinagar, Deheradun, Leh have shown more than 100% recovery, while business in metro destinations like Delhi, Mumbai, Bangalore, etc.\nhave lagged a bit due to high fares and corporate demand still short of full recovery.On international travel short haul destinations like Southeast Asia, Maldives, UAE, and Nepal witness strong recovery. In the next few months as the visa backlog gets cleared, and new visa issuances for European and American destination get streamline, we expect to see stronger demand recovery in these long haul destinations as well. Coming to our hotels packages and alternative accommodation business. We witnessed a strong recovery driven by leisure travel.\n", "Supply side services have now stabilized. In the top selling hotels 90% of the rooms are open and almost all chain hotels are now fully functioning. In many of the leisure destinations we are now seeing growth over pre-pandemic levels, which have helped taking the overall volumes recovery in the segment to around 87% of the pre-pandemic volumes. Accommodations are focused on building home stay supply has helped us improve supply leisure cities such as Rishikesh, Srinagar, Shimla, Manali, Missouri McLeodGanj, and Leh, which has helped us get past pre-pandemic volumes in this category.\nWe also launched Home stay Awards, which are one of its kind in the country, and we'll help popularize this category further. The awards attracted nominations for up to 2,500 plus home stays across the country, consumer voting is going on, and more than 4,60,000 votes have already been cast by the users. We continue to add more properties on our platform and increase our supply mode. It is encouraging to see that more and more properties in smaller towns are keen to come on our platform and sell online.\nIn Q1 we sold rooms in over 43,000 properties spread over 1,900 plus cities which reflects the extensive support being provided to small accommodation service providers, particularly in the remote towns and building deeper engagement with suppliers and customers in larger part. Coming to our bus ticketing business, we maintained our recovery momentum in the seasonally strong quarter. Demand and su" ]

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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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[ "market potential for this.\nSo we are looking even for ways to accelerate the expansion of that business looking at how we can fund that in different ways so that it doesn't hurt or doesn't change our credit metrics. But in the same time, we are able to access new sources of funds to be able to accelerate the capture of that value. So that's another area that we've been looking at very closely. We have also R&D developments around renewables, one that is public is green energy. We are not in the energy business today.\nBut with this development, green energy could be a breakthrough that could even be, depending on how the technology grows, is still in demonstration scale in terms of the technology. But if it progresses well and then goes into industrial scale, could be a very sizable market for us to get to in the future, again, also investing in developing our footprint in renewable chemicals, which is another way of mitigating the carbon footprint of the company.\nOperator\n[Operator Instructions] Now I'll turn it over for the company's closing remarks.\nRoberto Lopes Pontes Simoes -- Chief Executive Officer\nSo I'd like to thank everyone for joining us in this call. And I just wanted to end with a couple of remarks. First, as you all noticed, it was a very strong first quarter, driven only by an international scenario, but also by the ability of Braskem's team members and the teams around the world to really operate very efficiently and to capture all the opportunities that the market put out there for us.\nSo in this scenario, we closed the quarter with a very positive cash flow generation and the leverage of 1.8 turns, which is a very important reduction from what we had in the last quarter. I mean, in three months, we reduced our leverage by more than one turn of EBITDA. Also important to comment that we reduced our gross debt by about $700 million in this three month period, which shows our commitment to keep reducing our gross bench going forward. We're very committed to our financial liquidity and also to get that investment grade from the rating agency. The second point I'd like to emphasize that we are very confident that in the second quarter, we will also have a very good industry dynamics and that our operations will run well.\n", "We will continue to -- we expect to continue to have a good financial performance, given the scenario and also the way that we've been running the business. We will keep deleveraging Braskem, which is one of the main priorities for us this year. So I'd like to thank all of you for your participation and look to talking with you both when we release our second quarter results. But also just to remind everyone, we are holding an ESG Day in May 17. So about a couple -- 10 days from now, 11 days from now, we're having an ESG Day where we're going to disclose some of our achievements and also some new commitments around sustainable development for the company. So thank you all very much.\nOperator\n[Operator Closing Remarks]\nDuration: 90 minutes\nCall participants:\nRosana Avolio -- Investor Relation Manager\nPedro van Langendonck Teixeira de Freitas -- Finance, Procurement and Institutional Relations\nRoberto Lopes Pontes Simoes -- Chief Executive Officer\nBen Isaacson -- Scotiabank -- Analyst\nChristian -- Santander -- Analyst\nGuilherme Levy -- Morgan Stanley -- Analyst\nAnne Milne -- Bank of America -- Analyst\nLuiz Carvalho -- UBS -- Analyst\nRegis Cardoso -- Credit Suisse -- Analyst\nMore BAK analysis\nAll earnings call transcripts\n\n\n\n\n" ]

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[ "e should expect in this business for the next couple of years? And then if you could break out perhaps units or ASPs. It sounds like you're moving to 25 gig, so I want to explore that opportunity a little more? Thanks.\nMohan Maheswaran -- President and Chief Executive Officer\nYeah, so the main thing to remember with 5G for us in the optical modules is that with 4G there is typically just a PMD device of some sort. With 5G there'll be a CDR as well as a PMD device. So the opportunity for us in 5G is either ClearEdge CDR and FiberEdge PMD device for 25 gig. If they go to 50 gig links say, Tri-Edge PAM4 and FiberEdge device for 50 gig so ASP does increase for us. In addition, there is more typically with 5G, there's going to be more front links. I think it's been, it goes from 6 to 12 from holdings. So there is significant increase in the number of ports will be going forward so increased content, more ports. But then I think the other thing that's somewhat different for us and for everybody I think in 5G is that historically it's been China and I think, for sure, China will still be the predominant volume driver, but we are starting to see some of the OEMs around the world really take a more aggressive stance and trying to be successful in this market, and at least participate and some of that's geographical dependent on which regions are driving the need to have local suppliers support their 5G infrastructure, but that will also drive opportunity for us. I think for 4G, we have about 30% share of the market, we think we can hold that share at least for 5G and so that's kind of thinking and it should grow double-digits for sure over the next couple of years.\nChristopher Rolland -- Susquehanna Financial Group -- Analyst\nExcellent. And then also if you could talk about the datacenter opportunity, at least the datacenter end market more broadly there. Intel talked about perhaps demand slowdown. I just wanted to see if you agree with that or not? And then more specifically if you could talk about your optical opportunity there with Tri-Edge -- you mentioned cost versus analog. What is that discount that you get for analog and perhaps discuss how sales are tracking on that side?\n", "Mohan Maheswaran -- President and Chief Executive Officer\nYeah. Well, datacenter had a very strong [Technical Issues] had a record first half, so there was some expectation technology is going to [Technical Issues] and that's really what's happened is still on the annual year-on-year basis so up. And so, and will continue to grow nicely I think next year. So I think we've seen obviously some of the softness in Q3, expect Q4 to probably be flattish versus Q3 and then start to pick up again next year. Much like 5G, I mean the hyperscale datacenter is broad set of global customers. So it's pretty broad range of customers. We are obviously selling to the optical module manufacturers and they're building their modules and shipping into different datacenter customers and we've got good traction as I mentioned there. And we really expect to see production ramps for most of the 200 gig, 400 gig PAM4 modules over the next few quarters here. It's already started, but I think the next few quarters, we'll start to see that and essentially, you can take a 100 gig optical module today that uses our ClearEdge CDRs and essentially replace it with a very similar module that uses our Tri-Edge CDRs and get double the bandwidth for very little incremental cost in the module. And so that's the value we see and then that's what we expect the market to recognize.\nChristopher Rolland -- Susquehanna Financial Group -- Analyst\nThank you, guys.\nOperator\nOur next question comes from the line of Tore Svanberg with Stifel. Please proceed with your question.\nTore Sandberg -- Stifel -- Analyst\nYes, thank you. Just a quick follow-up. Mohan, I think you said that the Sidewalk opportunity alone could be $100 million over the next five years. Is that on chip revenue or is there some royalty or even services revenue in that number as well?\nMohan Maheswaran -- President and Chief Executive " ]

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[ "uilding an entire hydrogen supply chain to work with them and what that would mean.\nSome of these oil companies that have announced net zero carbon emission targets are asking us to participate in advisory panels, external advisory panels to help them understand what are those technologies that will contribute to, not only continue to produce the amount of energy that will be required to sustain and improve the standard of living of the world population over the next 20, 30 years, but do that in a sustainable manner, producing less emissions and so on.\nSo what are we doing internally? We have a lot already implied and based on our history, we actually think that Hybrid Models will play an increasing role in sustainability because we will be able to model reactions that are hard to model using first principle and a lot of that has to do with sustainability.\nSo, we are building -- so having said all that, just like we did with our capabilities around data science and chemo metricians and so on over the last five years, we are now starting to put together teams that will be exclusively focused on sustainability technologies because there is certainly a lot more than we can do. And you will hear more from us during the Investor Day about these. We are very encouraged by what we are hearing from our customers in this whole area of sustainability and how it is been accelerated and the role that they expect us to play as well.\nMark Schappel -- The Benchmark Company -- Analyst\nGreat, thank you. That is all from me.\nAntonio Pietri -- President and Chief Executive Officer\nThank you.\nOperator\nThank you. Our last question comes from the line of Blake Gendron with Wolf Research. Your line is now open.\nBlake Gendron -- Wolfe Research -- Analyst\nThanks for the time this evening. I want to circle back on APM. And not to pile on here, but trying to get an understanding of the customers that are in trial with APM right now, how many are existing MSC customers and some of the larger customers in your core end markets versus potentially new customers and in new markets for you?\nI guess I'm just trying to understand how much of the cash conservatism are users of MSC that just don't want to maybe spend on APM at this time versus I would imagine some logistical hurdles getting into the facilities with COVID or is there something competitively that we should be aware of? Are you waiting for opportunities to maybe displace a competitor in some of these APM opportunities?\nAntonio Pietri -- President and Chief Executive Officer\n", "Yes. Well, historically, we have said that about 10%, 15%, really about 15% of our total pipeline is outside of our core industries, the process industries, into mining, into pharma, into other industries. That is probably gone up a little bit over the last four quarters as we focused more on pharmaceuticals and mining.\nBut I still call it in that 15% range. We had a solid quarter and a solid first half of the year in pharmaceuticals and mining, and really, it is a reflection of our performance with APM in those areas. So we see the difference in decision-making between the industries. And it is what leads us to believe that this is something temporary.\nBut we are also -- we -- this is now two quarters in a row with this story. We were hoping for a better quarter in December. We thought we were going to have it, didn't materialize at the end. But customers continue to ask to do pilots and prove the value. So I think we are building up a significant pent-up demand that should materialize.\nBlake Gendron -- Wolfe Research -- Analyst\nNo doubt. Yes, it is a challenging environment for sure. In terms of the free cash flow guide, encouraging on the profitability front. It sounds like in this subdued annual spend growth environment that you are able to streamline cost a little bit and take some cost out. I'm just wondering how we should think about cost add back as sales efforts normalize and you are able to do business travel, should we think about it as cash conversion versus annual spend or as a percentage of annual spend growth" ]

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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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[ "bout on label use now, $100 million, $150 million globally. One of the things we try to do, Mike, is when we went into this, we wanted to go in and get to the market the fastest way we could and develop the technology. Even that took seven years, so it's been a long time. And we're looking forward to the business.\nAnd depending -- we should hopefully will come out in a very specific layout markets strategies. Those that we can release we'll talk about separately into a press release and a conference -- press conference, the days shortly following the approvals, and we'll make those announcements should they come. Now if they don't come from Europe, then we'll -- we're ready to start the IDE and then work toward the PMA approval. So we're on track.\nWe've built all that product right here in Salt Lake City, and it's very exciting for the future. The technology, the broad area of the technology is something that we'll be doing for many, many years to come.\nMike Matson -- Needham and Company -- Analyst\nThank you.\nFred Lampropoulos -- Chairman and Chief Executive Officer\nYou bet, Mike. Thank you.\nOperator\nOur next question comes from Matthew O'Brien with Piper Sandler. Your line is now open.\nMatthew O'Brien -- Piper Sandler -- Analyst\nThanks for taking my question. Afternoon, everybody. Fred and Raul, can we just start with Utah specifically? I know it's a smaller U.S. market, specifically from a state perspective.\nBut you guys there, you've had this conversation with the governor yesterday about opening things back up. I think the moratorium on elective procedures started roughly a month ago. I think it was March 23. So can you talk about what you saw? I mean, is your elective business down 70%, 80%-ish in the first three weeks of the quarter, expect things to maybe stabilize a little bit next month and then maybe get back to a little bit of growth in June? Is that a fair way to think about how the quarter can kind of play out just in Utah alone?\nFred Lampropoulos -- Chairman and Chief Executive Officer\nYes. I said that I would kind of stay on track. I would tell you that I saw the very same things that many saw in the Johnson & Johnson and some of these other reports. Our business is not seeing those kinds of declines or anywhere close to those.\n", "Raul, I'm going to let you maybe talk about this, so I can stay out of trouble, but then you can get yourself into trouble.\nRaul Parra -- Chief Financial Officer and Treasurer\nI'll give you guys some color because I think I'm going to try and dance around this a little bit, Matt, because, obviously, we want to make sure that we don't -- the reality is that there's a lot of variables, and I'll get into those here in a minute. But I think if you look at our OEM business, which is roughly 10% of our business that seems to be stable, OK? So you can pull that off the table from whatever you projected for that. I think the Nordics is around a $20 million business for us. That seems to be either stable or just a little bit above what we forecasted.\nSo that's stable business. China, you guys know, is about 11% of our business. That seems to be coming back a little bit, right? But Fred mentioned it. There was news today that maybe things are picking up again.\nSo that's -- and I think the hard part about this is that you've got China which gives us a very good footprint of what to expect. The problem is that the rest of the world is not going to act like China, we don't think, because, one, the government in China can force certain narratives and certain processes. What you have with the rest of the world is that you've got individual countries at different parts of the curve. You've got different states here in the U.S.\nat different parts of the curve. You've got countries and states that have different policies, and then you have the added component of patients and how they're going to react to either, a, not wanting to go to the hospital or going to the hospital. And so it's just -- there's just a ton of moving parts, and so it's hard to kind of give you anything more than that.\nFred Lampr" ]

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[ " product execution. We have rebuilt our leadership team, now fully assembled for the first time. And together, we have reestablished OKRs throughout the organization to drive common purpose and, importantly, a system of accountability. In the coming months, we will begin to share more with the investment community on the next evolution of our TikTok model to drive consistent and predictable cadence of process and design innovation.\nAs we look beyond the near term, the semiconductor industry continues to be at the beginning of a new structural growth phase driven by four superpowers: one, ubiquitous compute; two, pervasive connectivity; three, cloud-to-edge infrastructure; and four, AI. Combined, these drivers support a semiconductor industry eclipsing $1 trillion by 2030. What remains very clear even during this period of uncertainty is the growing importance of silicon to the global economy and to each of our daily lives. However, as a result of macro weaknesses, we now expect the PC TAM to decline roughly 10% in calendar year '22, characterized by broadening consumer weakness and relative strength in enterprise and higher-end SKUs.\nImportantly, our Q2 PC unit volumes suggests we are shipping below consumption as some of our largest customers are reducing inventory levels at a rate not seen in the last decade and, along with some pricing actions, should allow for sequential growth into the second half even as some customers manage inventory lower. While COVID-related dynamics, like work-from-home and school-from-home, pulled forward some demand, they also solidified the PC as an essential tool in the post-pandemic world. For example, PC and Chromebook usage remains historically high even as the pandemic's most acute impacts diminished. Markedly higher per PC usage and a larger installed base, including 600 million PCs that are four years and older, supports a PC TAM sustainably above 300 million units.\nData center trends are still well entrenched. Data has been growing exponentially at a 50% CAGR for over 20 years. But until recently, it has been uneconomical to turn that data into true actionable insights. With the advent of AI, along with CPUs, GPUs and accelerators, we now have the tools to access and use more of the data we create, driving significantly higher compute demand and a multiyear CAGR in the data center TAM of at least mid-teens.\n", "Despite these drivers, demand will not be immune from economic headwinds. In addition to match set issues, which have constrained shipments for multiple quarters, increasing economic concerns are leading to a reduction in second-half demand. As a result, we have lowered our server TAM assumptions to reflect more modest growth in 2022. Against this backdrop, let me highlight key developments in our businesses.\nIn response to supply chain and match set issues, we closely collaborated with our customers and suppliers to effectively address their most critical needs. We rapidly adjusted to changing market conditions, made cost reductions and leveraged smart capital to execute toward our IDM 2.0 strategy. Despite significantly lower revenue impacting overall gross margins, Q2 saw continued strong performance in our factory network, and we exceeded our wafer cost goals with 10-nanometer unit cost declining approximately 8% year on year. In TD, we continued to deliver on the promise of Moore's Law and our ambitions to deliver 1 trillion transistors in the device by 2030.\nIntel 4 details were released at the recent VLSI conference to positive reviews, and we've now taped in the first stepping of the Granite Rapids CPU and expect to power on this quarter. In the second half of this year, we plan to tape in numerous internal and foundry customer test chips on various process nodes, including Intel 3 and Intel 18A. In our client business, Alder Lake momentum continues. We have the strongest PC lineup in five-plus years, and we remain unapologetic about our growing leadership and share position.\nWe are building on Alder Lake leadership with Raptor Lake in the second half of this year and Met" ]

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[ "course of time. And it will expand to mobile and will expand to other new and interesting ways to play. But certainly, this is just a moment where we take a pause and do all that we can for the core game and the core community.\nBenjamin Soff -- Deutsche Bank -- Analyst\nGot it. And then just in light of the announcement that you guys are working on those three new Star Wars games, can you talk a little bit more about your vision for that IP? And is it fair to say that, going forward, you're planning to lean more toward investing in your own IP? And if so, what are the like some of the potential pros and cons of that as a strategy? Thanks.\nAndrew Wilson -- Chief Executive Officer\nYeah, the very strength of our business is our balanced portfolio. We have both a deep and a broad portfolio. And what we've demonstrated over the course of our -- the best part of 40 years, is to really develop both our own IP over time, like Need for Speed, The Sims, Battlefield, Apex Legends, our BioWare franchises. We have Skate in development now, Dead Space on the way, so an incredible portfolio of owned IP that has an extraordinary following across the industry.\nCombined with other long-term enduring IP, we have the power of our sports franchises. And they are true evergreen franchises, and this is not just about licensing content, this is about working with over 300 partners across the various sports industries to deliver a true connection with the sports, the leagues, the teams, the plays that our fans love. And we've been doing that now for well over 30 years, and I think that we'll continue to do that for many, many years in the future. And things like the Star Wars franchise, again, a long-term relationship we've had with Disney, for more than a decade.\nAnd this is not simply about building or revisiting things that already exist in the universe, but really adding to that Star Wars universe and really delivering new opportunities for Star Wars fans to experience great Star Wars content. And so when you think about our strategy going forward and the strength of our company, it really comes down to our ability to develop and build and publish industry-leading owned IP, but also work with partners over decades to truly deliver fan favorites with long and enduring fan bases, like our sports franchises and like Disney.\nOperator\nYour next question comes from the line of Andrew Uerkwitz from Jefferies. Your line is now open.\n", "Andrew Uerkwitz -- Jefferies -- Analyst\nHey. Thanks. Thanks for taking the call and just to reiterate the positive sentiment for Blake, it has been a great run, I really enjoyed it. I guess I just had really one question, no follow-up.\nYour -- one of your bigger competitors was just taken out. You guys have quite the portfolio and have taken a portfolio approach for years. How do you think the industry will look in three or four years? Do you guys see yourself as a consolidator, a potential seller? How do you see this industry shaking out over the next three to five years? Thanks.\nAndrew Wilson -- Chief Executive Officer\nYeah, great question. And you should imagine, we've been thinking about this for some time as it turns out. And part of the reason why we have built the strength in our broad and deep portfolio and why we have gone out in search of the best teams in the industry to bring them into our company and build great entertainment for a global player base of what is now well over 0.5 billion fans is because we do believe in the power of entertainment, we do believe in the power of interactive entertainment. I think what we're seeing now in the marketplace is the motion of the value of what we do in particular.\nAnd so as I think about the future of the industry, I do believe that we will start to see entertainment coming together. You're seeing some other companies talk about this. But when we think about our players and we think about the things that they engage in, they play our games more than any other form of entertainment, but they also consume linear media and scripted entertainment and sports broadcast and " ]

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

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[ " short by about 9 million metric tons during that time frame.\nAnd in the near term, with these GDP growth rates, things are going to be tight. So we're looking at growth. I mentioned to Jeff's question earlier a 600 kt expansion on polyethylene, that's in the cards. Incremental expansions on ethylene, those are in the cards.\nWe're doing work on our own FCDh technology and our EDH technology in the Gulf to try to have low carbon moves forward. I think one of the things that has to be resolved before you see a next wave of announcements is what are the policies going to be in the United States around carbon, carbon border adjustment mechanisms, carbon tax, perhaps a voluntary emissions trading scheme. And we have to know what those are. We have to know how China is going to play on the global footprint.\nAnd we have to see how Europe is moving forward. All of those have to be resolved before we can see what the right place is to make that next step. But we're working on projects, and we're looking for the right opportunity.\nOperator\nOur next question comes from Alex Yefremov with KeyBanc Capital Markets.\nAlex Yefremov -- KeyBanc Capital Markets -- Analyst\nThank you. Jim, just to continue on the subject, you mentioned that the price of carbon in Europe is currently not high enough to really provide incentive to implement these technologies. As this price rises and Europe implements the tax to help domestic industry sort of absorb these higher carbon prices, do you think that ultimately amount to something neutral for Dow Chemical? Because having capacity in Europe you will directly or indirectly benefit from these import taxes.\nJim Fitterling -- Chairman and Chief Executive Officer\nThanks, Aleksey. I think it can be done. And I've said before and I'll continue to say it, we need to have a real constructive and open dialogue about how much it costs to do this. I think, idealistically, everybody is in agreement that we want to make improvements and we want to reduce carbon emissions and we want to get to net zero.\n", "But nobody's yet, at a government level or any level, having the educated discussion that we need to have about the cost of doing this. What will happen in Europe is Europe has -- the way the emissions trading game works in Europe is they have price for carbon, but they also have allowances for energy -- for emissions emitters. And if you're under your allowances, you can trade those carbon credits. What they will do over time is they will ratchet back the allowances and they'll start to put everybody over their allowances and that will start to drive the prices up and that will drive the incentives to make the conversion.\nSo Europe is less concerned right now with what the cost is to everybody and more concerned with trying to drive that number up and drive the conversion. And we're in the middle there trying to talk to them realistically about what the price is to do this, what the technologies are today, and scale up the ones that we think are the most cost-effective going forward, blue hydrogen, carbon capture to be able to do that. So I think as we work through that over the next two or three years, we'll start to make some progress to that. And I would say all heavy industry and the power and utility sector are taking a look at this, but with eyes wide open that it's not free.\nAnd the other thing to remember on hydrogen, is as you move to a hydrogen economy, the most effective way to make most of that hydrogen is through steam methane reforming which uses natural gas, which means you're going to need a lot more natural gas production to make that hydrogen. And that's one of the other discussions that is difficult to get on the table right now.\nOperator\nOur next question comes from Steve Byrne with Bank of America.\nSteve Byrne -- Bank of America Merrill Lynch -- Analyst\nYes. Thank you. So, Jim, you're really leading this initiative on net zero. I mean, you're the -- you're clearly one of the few that have a net greenhouse gas emission target for 2050.\nI'm curious to hear your view as to what's driving that. I me" ]

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[ " of incremental annual rebar demand within a domestic market of roughly 9 million tons, representing an approximately 17% increase in consumption. Spending is expected to ramp up over five years and assuming typical time frames for project approvals, bidding, and awarding, we should begin to see some impact on construction activity in calendar year 2023. The Dodge data I discussed earlier supports this view.\nAnother meaningful structural trend is the reassuring of critical industries. We have previously mentioned the massive scale and pace of construction of new semiconductor facilities. Currently, there are at least 11 facilities planned to be constructed with related total investment of over $275 billion. CMC is already shipping to several of these projects, but most are yet to break ground and impact rebar consumption.\nSemiconductor chip and wafer plants are the highest profile examples of reshoring, but other industries are also experiencing increased activity or project planning. These include LNG facilities for the export of natural gas, chemical and plastic plants, as well as the automotive supply chain with a particular focus on electric vehicles and battery production. The last three years have exposed the vulnerabilities of concentrated global supply chains structured to operate under stable conditions and cooperative political regimes. The pandemic and geopolitical turmoil have reminded us of the need for a more distributed set of sourcing options, ensuring reliability and flexibility in securing critical materials and equipment.\nEventually, we expect reshoring to extend well beyond the areas we just discussed. Turning briefly to merchant bar, underlying demand conditions and end use OEM markets are generally stable. Following the destocking event that occurred during our fiscal fourth quarter, shipments to service centers stabilized at improved levels during the first quarter. We would expect real underlying demand to continue at a steady rate in the quarters ahead.\nAs I indicated, market conditions in Europe are more challenging. Overall, construction activity continued to grow on a year-over-year basis during the first quarter. However, residential activity, which has been strong for more than a year, is now showing signs of a slowdown due to the impact of rising mortgage interest rate. New mortgage origination has declined meaningfully over the last several months.\n", "However, programs are being developed to support first-time homebuyers, which should attract more market activity by mid-calendar 2023. In addition, as a result of the ongoing energy crisis, industrial activity in Central Europe has been in contraction since the summer of 2022. This has impacted demand for merchant bar and some wire rod products. On the other hand, energy prices have moderated somewhat from recent market peaks, and the current mild temperatures should also provide some relief.\nAs illustrated on Slide 10 of the supplemental presentation, the European energy crisis, combined with trade sanctions, has impacted historical trade flows in the region, which has benefited Poland on a relative basis. Poland has recently moved into a net rebar export position compared to a fairly large net import position a year ago. Electricity price volatility relative to the broader EU has tended to be less extreme in Poland over the last year due to a variety of factors, which has created a favorable cost dynamic for Polish producers. Energy costs have been both lower and more stable, providing some protection from imported materials originating from other European Union countries.\nWith regard to rebar trade with countries outside the EU, little foreign material has entered the Polish market to offset the loss of Russian and Belarusian rebar. Imports have increased into the broader EU, but this material has gone to countries that are more logistically accessible and are experiencing higher energy costs. So, while European demand is challenging at the moment, the supply side of the economic equation is helping to offset much of the detrimental impact. " ]

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[ "w. As you say, we've really built out a portfolio that really can take advantage of the secular drivers around sustainability and, quite frankly, worker safety. And so we feel good about that. I think the Intelex platform itself adds tremendous value. As I mentioned in the prepared remarks, we use it for our own sustainability assessment, and it's a wonderful tool to help us understand how to think about goal setting and how to drive action to really improve, not just -- not just report on sustainability, but more importantly, take action. So I think we feel very good about the platform. We think there's investment opportunities in the future that we can make. So I think relative specifically to your question, Intelex has been a double-digit grower for us. It's mostly been in the teens. I think as we continue to build on it, really, as we hit the accelerator with some of the machine learning opportunities that we've really got with ehsAI, we'll start to see some of those things in the back half of the year. I think we can continue to move that growth rate. I'd like to think we can go beyond that. But I think in the near term, we certainly think it's a double-digit grower for sure.\nAndy Kaplowitz -- Citigroup -- Analyst\nAppreciate the color, Jim.\nJames A. Lico -- President and Chief Executive Officer\nThanks, Andy.\nOperator\nYour next question is from the line of Deane Dray with RBC Capital Markets.\nJames A. Lico -- President and Chief Executive Officer\nHi, Deane.\nDeane Dray -- RBC Capital Markets -- Analyst\nThank you. Good afternoon.\nJames A. Lico -- President and Chief Executive Officer\nGood afternoon.\nDeane Dray -- RBC Capital Markets -- Analyst\nI want to circle back on the implications of getting more site access. Could you give us a sense of maybe on a percent basis, how much has opened up? But more importantly, what are the implications? Is there a pent-up business that really has been depending on being able to get back in? Should we think about a catch-up here?\nJames A. Lico -- President and Chief Executive Officer\n", "Yes. Look, I think site access comes in the way of two -- it comes in the form of two ways. Number one, I think on our -- anywhere where we have service businesses, but let's call it, non-healthcare. We certainly -- we've gone to remote capability, but it takes longer to turn customers on and software as an example. And so I think there is some pent-up demand. But I think, to be honest with you, Deane, we've had such little access here over the last several-several months that it's hard to predict how quickly it will open up, particularly when you think about that on a global basis. So we certainly believe it's going to continue to improve, but I wouldn't say necessarily that we think it's going to all be better by the end of the year. We just don't have enough visibility yet to -- I think most customers aren't really opening up here until maybe the third quarter. So I think it's still a little early to predict it. But I think the predictions that we have are really based on some of the trends we've seen, which we feel good about. But I think they could get better if we could see vaccinations get more -- more prolific here and start to see more opening up of businesses. So that's on -- that's everywhere from Gordian and Accruent to eMaint to those -- even like our Tektronix Calibration business, which some of it is on site. On the healthcare side, we certainly think that we can continue to have access. We're in hospitals today doing service for the most part, but everything is a little slower. We mentioned in the Censis prepared remarks, though, that we are starting to see purchasing decisions free up a little faster. And again, that's all built into our guide as well that we think we continue to get better. But I think at the end of the day, it is because pockets in the United States plus the nations, it's really too hard -- it's still a little difficult to necessarily predict exactly how that opens up in a sense of any of the pent-up demand, if you will.\nDeane Dray -- RBC Capital Markets -- Analyst\nGrea" ]

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

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[ "t Quality Award, recognizing Qorvo's innovation and outstanding performance in support of their Galaxy product family. In IDP, Wi-Fi revenue, including Wi-Fi 6, was a record. The rate of adoption of Wi-Fi 6 is outpacing the adoption that we experienced for Wi-Fi 5 and the rollout is forecasted to span multiple years across enterprise, retail and service providers. Qorvo is seeing a strong attach rate given the performance advantages we enable related to range, efficiency, signal integrity and form factor. To that end, we recently secured the entire bill of materials in support of a major U.S. MSO gateway. We also released multiple 5G -- 5 gigahertz iFEMs that deliver improved band isolation and enhanced capacity and range in tri-band Wi-Fi 6 home mesh networks.\nIn broadband, MSOs are increasing downstream and upstream data capabilities by upgrading to DOCSIS 3.1 infrastructure. During the quarter, we expanded shipments of DOCSIS 3.1 GaN power amplifiers to major U.S. MSOs, offering greater efficiency, longer range and increased bandwidth to maximize upstream and downstream data connectivity.\nIn automotive, Qorvo has for years been successful supporting the increased demand for in-vehicle infotainment. During that time, we have expanded our automotive portfolio and engaged with customers to enable the transition to connected car through cellular V2X. In the March quarter, these efforts helped to generate the first production orders for our cellular V2X front-end modules and BAW coexistence filters to support the leading European automotive OEMs. Of note, Qorvo's high-frequency BAW coexistence filters also enable the concurrent operation of cellular V2X and Wi-Fi.\n", "In programmable power management, customer demand has been strong in support of two trends. First, the transition of solid-state drives is ongoing, primarily in laptops and gaming consoles. During the quarter, Qorvo's programmable PMICs continued to support this transition with expanding shipments to and new engagements with multiple leading solid-state drive providers. Second, the transition of brushless DC electric motors is accelerating, enhancing efficiency and a broad set of consumer products, including power tools and appliances. Qorvo increased shipments of motor control solutions during the quarter, supporting multiple major consumer brands. In defense applications, the shift to higher frequencies, the adoption of phased array radar and the proliferation of GaN are among the trends supporting demand for Qorvo's products. For radar applications, we released a reconfigurable dual-band GaN power amplifier MMIC for the S and X-bands, enabling more compact next-generation radar systems. Over 30 million miles away, the successful landing of NASA's JPL Mars Perseverance rover was supported by our components integrated into the rover's descent radar. In infrastructure, we continue to ramp shipments during the quarter to a base station OEM in support of US C-band massive MIMO deployments. And we captured initial design wins for massive MIMO deployments in Canada, Japan and Korea.\nQorvo brings decades of technology leadership in wireless infrastructure and we are leveraging the full breadth of our GaN power and small signal portfolio to support OEMs on upcoming 5G deployments. We have strong customer engagements, we are investing in critical enabling technologies and design activity remained robust. We see tremendous opportunity in 5G infrastructure globally over the next four to five years as deployments continue to roll out.\nAfter the quarter closed, we received an emergency use authorization from the FDA for Omnia COVID-19 rapid antigen test, which leverages high-frequency BAW sensors for high sensitivity and specificity. Qorvo began efforts to use BAW sensors to develop diagnostic test solutions in 2013 in a manner similar to how we leveraged our BAW filters to achieve superior frequency selectivity in RF applications.\nNow with the authorization from the FDA, we are preparing to scale production to help support ongoing public health efforts. To that end, Qorvo " ]

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[ "er\nYeah. C.J. This is Gary. Thanks for the question.\nI think ICAPS, maybe some people would think is trailing technology nodes. But if you really think about the digitization of everything and this big inflection, people are talking about the future having half trillion or trillion connected devices at the edge. And certainly, as we talk to system companies that are deploying those eyes, and ears, and sensors, in all of those different applications that are transforming every industry, there needs to be a tremendous amount of innovation and power performance cost in both the chips and the packages. And we will cover this some more in the September 8th master class.\nBut I would think about edge innovation. Certainly, in the cloud, you need high performance to extract actionable insights. But that latency, power, cost, all of those things on the edge, that innovation is really important. And I think relative to sustainability, certainly, you can see the explosion of data, especially machine-generated data.\nThis market is very, very strong and we think as you go to a half trillion connected devices at the edge in the future, it's going to stay very strong. And as Dan talked about, we made a strategic change in our organization in 2019, pulling together key parts of our company, 200-millimeter, 300-millimeter unit process innovation. We have some dynamite technologists focused on these markets. And again, we'll share more of that at our September 8th master class.\nMichael Sullivan -- Corporate Vice President\nOK. Thank you, C.J. Operator, can we have the next question, please?\nOperator\nThank you. Our next question comes from the line of Stacy Rasgon from Bernstein Research. Your line is now open.\nStacy Rasgon -- Sanford C. Bernstein -- Analyst\nHi guys, thanks for taking my question. I had a question on memory. First on DRAM, so obviously it grew pretty nicely sequentially in the quarter. And it sounds like you're still pretty positive though on the trajectory and it's still below prior peak levels.\n", "And given the strength of your positioning and everything you've talked about, is there may be any reason to believe that like whenever we hit DRAM peak -- whenever that is, is there any reason to believe that that level wherever it is, shouldn't be higher, potentially significantly higher than where we saw the prior peak, which was several years ago? And I think on the other piece of memory, NAND, you talked about foundry-logic and DRAM, you didn't really mention NAND at all. I know last quarter your views on NAND were a little more muted than the rest of it. Have your views on the trajectory of that market into the back half down ticked at all versus where you were 3 months ago? Because one of your competitors down ticked a little bit.\nDan Durn -- Chief Financial Officer\nYes. Thanks, Stacy. Let me take a crack at those questions and if I leave anything out, please follow up to make sure I hit all of the points that you put on the table. First, I think our view around WFE this year, there's very little change.\nWe said it's now over 80 billion, we think it's a mid-30% grower, plus or minus, and embedded within that, we see strength across all device types. Your fastest-growing, foundry-logic, second-half weighted. Next fastest-growing, DRAM, second-half weighted. Still see strong demand and pull from customers there so we feel good about that.\nLast quarter, we put a question mark on the profile of NAND. Is it flat? Is it down a bit? We needed a bit more time to tell, I think we're still in that category. I think there's a question mark. Is it flattish? Is it down a bit? So very little has changed in terms of the shape of the profile throughout the year.\nTaking a step back and taking a look at our DRAM progress, this is a business that we've had strong momentum in now for several years. And as we take a look at the roadmap, we talk about increasing our opportunity node over a node, and that seems to be playing out in the market. Right now, you are adopting logic-like structures within the DRAM market in this place to a traditional s" ]

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[ "ing kind of the leader in IoT going forward?\nTyson Tuttle -- President and Chief Executive Officer\nYeah, certainly we look at a lot of the other technologies in cellular. But I think when you, when you think about strategy and one of the things that we're accomplishing with the sale of our I&A Group is to obtain focus, to be able to focus on this massive opportunity in IoT. And I think even within IoT, it's very important that we focus on the most important things and that we don't get spread too thin. And one of the -- you look at the standards that we are addressing from WiFi, Bluetooth all the mesh networking, Z Wave, ZigBee, Thread and then all of the industrial proprietary protocols that we can also run those onto our chip, there is a massive opportunity for that. And if we focus and execute on our vision and continue to push that with -- into the next process technology nodes and to really build up our WiFi business and our Bluetooth business. We have a long runway of growth without having to necessarily add another protocol. And in fact, adding another protocol especially going after cellular could be seen as a distraction from the success in these other large area. So, it's something that we're keeping our eyes on, but also being very careful to make sure that we maintain that focus on what the really big prizes which is the standards that we're on is a massive growing market and we've got to make sure that we ensure success in that.\nRajvindra S. Gill -- Needham and Company -- Analyst\nAppreciate it. Thank you.\nOperator\nOur next question will come from Matt Ramsay with Cowen. Please go ahead.\nMatthew D. Ramsay -- Cowen Inc. -- Analyst\nThank you very much guys. Good morning. John, I wanted to ask a little bit about the -- after the I&A sale. The pro forma business and the concentration for the IoT business on distribution is that materially different than the combined company has been? I think my observation would be probably yes. And then secondly with the supply constraints, I imagine you're on books inventory and your inventory in the channel are below levels right now in the IoT franchise that you'd like to run that business at in a steady state basis. If you could talk a little bit about where the IoT business is from an inventory perspective versus what inventory might be, need to be rebuilt as we get back the supply demand parity at some point here? Thanks.\n", "John Hollister -- Senior Vice President and Chief Financial Officer\nYeah, certainly on the first question, IoT is a relatively distribution heavy business with a broad base of customers, outstanding support from our distribution network. So, we expect that to be on the high distribution side of how we operate. And on the inventory question, you're right, channel inventory is lean and we'd like to see some build in the channel inventory levels and the IoT business would normally operate with a relatively higher level of inventory inside than the company average. You tend to see, faster turns on more vertically oriented businesses. With a broad-based business like IoT it makes more sense to carry a bit more inventory, and we're not there right now.\nMatthew D. Ramsay -- Cowen Inc. -- Analyst\nGot it. Thank you. Tyson and just a bigger picture question. And just -- I guess a reflection of some investor feedback I've gotten in the last week or so since the deal was announced. You look at the IoT franchise 20% growth going forward as you've outlined a $15 billion IoT TAM. I don't know, I would imagine you guys would agree that we're in the early innings of this IoT market phenomenon. And then you get $2 billion in the door that you've earmarked to give back to shareholders, I wonder what the debate has been within the management team and the board feedback from shareholders as to use of that proceeds. My observation is a bit of a scarcity value of high growth, quality and your market cap range in public companies. And I wonder if investors might ask the question what other uses of that cash could there be to grow the business further versus just returning it to " ]

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[ "ss launching our transformation into a pure play leader of intelligent wireless connectivity for the IoT market. We also announced organizational changes that will enhance our ability to capitalize on this exciting new opportunity in IoT. Matt Johnson, formerly Senior Vice President and General Manager of IoT has been promoted to President of Silicon Labs, where he will be leading our day-to-day business operations, as well as our product development activities. Daniel Cooley, formerly our Chief Strategy Officer, will now serve as our Chief Technology Officer, where he will continue to develop our technology roadmap and align our products and solutions to the market opportunity before us. Tyson Tuttle will continue as Chief Executive Officer to further evangelize our products and platform to the growing IoT customer base.\nPlease note that the divestiture will include a small ASIC product line currently classified in the IoT reporting category, which accounted for less than $3 million of revenue last year. Our comments today will focus on the consolidated operations of Silicon Labs. We expect to be in position to report on our continuing operations on an IoT only basis in the July call.\nWe are very pleased to announce this morning record revenue for the first quarter at $256 million, up 5% sequentially and 19% year-on-year, significantly exceeding the high-end of our initial guidance for the quarter. IoT revenue for the quarter was $158 million, above our expectations, up 7% from Q4, and 34% year-on-year. IoT Wireless led the way with 44% year-on-year growth in Q1, with strong double-digit growth across all our major wireless protocols. Infrastructure and Automotive revenue in Q1 ended at $97 million, up 2% sequentially and about flat year-on-year. Timing and Isolation both increased from Q4, offset by slight declines in other I&A product lines.\nTurning to end markets, revenue from industrial, consumer and communications markets were all up in Q1. Automotive was down slightly, coming off a strong Q4 recovery. Distribution sales were 79% of total revenue for the quarter, and we ended Q1 with DSI at around 41 days, down from 47 days at the end of Q4 with strong POS to end customers, driving down the distributor inventory level.\n", "Geographically, we saw particular strength in Q1 in APAC and Europe, with sales in the Americas down in the quarter. Total bookings were very strong again this quarter, and about 5% higher than Q4 bookings, which were already at an elevated level. Non-GAAP gross margin for the quarter ended better than expected at 59.1%, due to strength in product mix, as well as operational efficiencies with the upside in revenue. Non-GAAP operating expenses in the quarter were $103 million, up about 6% from Q4, primarily due to increased payroll taxes, variable compensation, and medical claims expenses. R&D expenses were $61 million or 24% of revenue in the quarter, and SG&A expenses were $42 million or 17% of revenue.\nNon-GAAP operating profit for the first quarter was $48 million or 18.7% of revenue. Our non-GAAP effective tax rate for the quarter was 10.8%. Non-GAAP earnings ended at $0.91 per share. On a GAAP basis, gross margin was 58.9%. GAAP operating expenses were $128 million. Stock compensation expense was $14 million, and amortization of intangible assets was $12 million, both in line with expectations.\nTurning now to the balance sheet, we ended the quarter with cash and investments totaling $578 million. Our operating cash flow in the first quarter was $15 million, with significant cash outlays related to seasonally higher payroll taxes and increased levels of working capital. Accounts receivable was up on strong shipments in Q1, ending at $104 million. Our DSO increased slightly to 37 days. We have no known bad debt exposures related to our accounts receivable. The inventory balance grew in the quarter to $79 million, on anticipated growth in the business, with inventory turns declining to 5.3 times, which is still higher than our goal.\nThough the overall supply chain in the semiconductor market remain" ]

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[ "he entire portfolio driving solid growth across the business. So Android and mobile computing is one aspect. But this is something that's much broader for us than one product line. Again, I go back to some of the things that I think differentiates us in the market of some things like our deep understanding of work flows and giving our customers the ability to leverage data at the edge to take more good real-time decisions to help to optimize and drive their businesses. So we're very excited about opportunities in all of our product lines. And there's several megatrends that support the growth like the on-demand economy.\nNow specifically to mobile computing, we have seen great growth over several years now. And we're certainly very excited about the progress we made and the outlook we have for that business. There are several drivers for the growth we've seen. Now there's things like a number of new use cases they are being deployed that's underpinned by the strong portfolio of software capabilities that we have developed for our mobile computing portfolio. So this new use cases, I think, the best being long-term growth drivers. A couple of examples, a lot of our customers are looking to consolidate multiple devices or multiple applications onto our mobile computers. One example will be many verticals and many customers are using or have historically used dedicated PBX or wireless PBX phones for people. Now with our Workforce Connect application, we can consolidate that device and that use case onto our mobile computers. Another trend we're seeing is that our customers are looking to put more and more technology in the hands of all their people. So pushing technology further into the organization, so the trend of having a device for everybody is gaining a lot of traction. And I'd say also our big screen portfolio of mobile computers, so tablets and vehicle-mounted computers are seeing a lot of new use cases and interest also.\n", "Now specifically to the Android transition, it clearly has been the catalyst for growth for 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 demo" ]

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[ "les estimate for TransCon hGH? What is the best way for us to model the trajectory of the launch ramp? And are there any good analogs or factors that could influence adoption in this market that hasn't seen much new treatment advancements in a while?\nJan Moller Mikkelsen -- President and Chief Executive Officer\nYeah. It's always an interesting question because I take it from a little bit different perspective. As I said in my script, we want to build as the global leading brand with TransCon growth hormone. Do we have the fundamentals for that? Do we have the fundamentals to be the leading brand in the US? Everything what I have seen out of this product opportunity, TransCon growth hormone, everything what I have seen to the competitive landscape give me a stronger and stronger belief TransCon growth hormone will be the leading brand in the growth hormone market. This is what is important for me. Go up and be the leading brand in the growth hormone market, not only in US, but also in Europe, Japan, China, everywhere where we can be.\nHow we come there is what I call an optimization of value creation and penetration. And I see product opportunity trying desperately to get fast penetration on the cost of value creation. We are here with a pipeline concept. We are here with multiple products that will come after each other with both label expansion. So my focus is basically not what we exactly will see of sales in 2022, but basically how fast, how well, how can we create most value out of TransCon growth hormone, and that is what we focus for in this end. And we will optimize value, we will optimize the penetration and that is what we're building in.\nOperator\nThank you. Our next question comes from the line of Josh Schimmer with Evercore. Your line is now open.\nJosh Schimmer -- Evercore -- Analyst\n", "Hi. Thanks for taking the questions. I have two. One is on TransCon PTH. We've talked in the past about the need to shift the treatment paradigm to broaden the patients that physicians deem suitable for PTH replacement and not just calcium and vitamin D supplementation. So, maybe you can give us a sense as to how you feel that's evolving and progressing now that you have more of the TransCon PTH data in hand. And then second, and I'm sorry if I missed this, but I think on the last update, you had indicated that you're working on a new franchise for the TransCon platform, a new target. When might we hear more about what that franchise might look like? Thanks.\nJan Moller Mikkelsen -- President and Chief Executive Officer\nThanks, Josh. I have never had any doubt that TransCon PTH will be a true benefit for the patient. But honestly, it's not so much what I really believe that is important. What is important is, can the physician see the same thing, can the patients see the same benefit. And when we're looking in all the aspect of the data we are getting out from, you can say, biochemical data, quality of life, we see this huge benefit. When we hear the story from the patients, we hear the story how they're feeling to go back to a normal life, how they're feeling that is a total change of everything what we have seen and what we now also see that some of the key physicians, physicians that basically are treating patient with TransCon PTH also realizing this. How we can provide not for a subgroup of HP patients, but basically for the entire diversified group of HP patients we have in our Phase II trial, where they're really independent on disease spectrum, independent on severity of disease, all stays in, because all of them see the benefit, and the physicians are recognized it. We have seen physician -- and I -- just this is really interesting for me, for about half-a-year ago, we're say in past we will take 30%, 40%, 50%, 60%. What we're saying now, we will take all patients. And I think that is some way, I think, we believe that we need to have this communication now. But I believe it comes out now. Perhaps it takes some time, but with more and more patients getting treated with TransCon PTH more and more that fulfill and we see how " ]

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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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[ "liver product leadership for our customers, and we are taking the right steps to produce a strong lineup of leadership products.\nWe will continue to invest in our future process technology road map, but we will be pragmatic and objective in deploying the process technology that delivers the most predictability and performance for our customers, whether that be on our process, external foundry process, or a combination of both. Our advanced packaging technologies, combined with our disaggregated architecture, give us tremendous flexibility to use the process technology that best serves our customers. As an example, our data center GPU design, Ponte Vecchio, will now be released in late 2021 or early 2022, utilizing external and internal process technologies, combined with our world-leading packaging technologies. We now expect to see initial production shipments of our first Intel-based seven-nanometer product, a client CPU, in late '22 or early '23.\nWe are also focused on maintaining an annual cadence of significant product improvements independent of our process road map, including the holiday refresh window of 2022. In addition, we expect to see initial production shipments of our first Intel-based seven-nanometer data center CPU design in the first half of '23. Finally, while process technology is very important, it is only one of the six technology pillars of innovation that drive differentiation in our products. You will hear more about advances across all six technology pillars: process, packaging, architecture, memory, interconnect and security/software at the upcoming Intel Architecture Day.\nLast, we are focused on the thoughtful allocation of your capital. We are investing to grow our capabilities even as we deliver significant free cash flow this year. Since 2015, we have grown R&D spending by more than $1 billion while divesting non-core assets and reducing overall spending as a percentage of revenue by 9 points. We also look for opportunities to augment our product lines and speed the pace at which we can grow the company.\n", "As discussed earlier, we acquired Moovit this quarter, investing approximately $900 million to dramatically accelerate our capability to capitalize on the $160 billion Mobility-as-a-Service opportunity. We also announced a $250 million investment in Jio Platforms, a high-speed wireless connectivity, and digital services provider, to help fuel digital transformation in India. Our purpose to deliver world-changing technology that enriches the lives of every person on Earth has never been more essential, but the global problems we face are bigger than any one company can solve alone. That's why we established 2030 corporate responsibility goals, which call for a collective response to revolutionize health and safety, make technology fully inclusive, and help address climate change.\nWe've also committed more than $50 million and extended our expertise, global reach, and influence to combat COVID-19, as well as social injustice. The early results of our pandemic response technology initiative, which we announced earlier this week, underscore Intel's unique ability to partner and collectively solve critical problems. In closing, I want to thank all our employees who are working through this challenging time to deliver our purpose and support our customers.\nGeorge Davis -- Chief Financial Officer\nThanks, Bob, and good afternoon, everyone. The atypical seasonal effects of COVID-related demand for mobility products and data center infrastructure continued in Q2, resulting in record Q2 revenue for CCG, DCG, and memory. Revenue came in at $19.7 billion, up 20% year on year, and $1.2 billion higher than guided. Data-centric revenue of $10.2 billion, up 34% year on year, represented 52% of our total revenue, an all-time high.\nStrong demand for NAND and 5G networking solutions and richer server mix drove most of the upside versus our expectations. Q2 PC-centric revenue was $9.5 billion, up 7% year on year on strong notebook PC sales enabled through increased manufacturing supply on capacity additions ove" ]

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[ "The incessant banging on the door finally roused Ted Jackson from a deep sleep. Floodwaters roar across the highway in Paulding County, one of the hardest-hit in Georgia. He hustled out of bed and rushed to the door. There were his neighbors, surrounded by floodwaters the neighborhood is supposed to experience only once every 100 years. Jackson raced to his basement and the water level -- submerging nine of the 13 steps to the floor -- filled him with dread. His dog, a 2-year-old pomeranian, slept in a kennel down there. \"My first initial thought was my dog is dead ... he didn't have a chance,\" said Jackson of Powder Springs, Georgia, where he and the rest of the residents in the metro Atlantan subdivision spent Monday stranded by acres and acres of water. The dog, named J.J., died in the flooded basement. Jackson is just one of thousands of Georgia residents trying to salvage their homes after days of rain rushed deadly flood waters to their part of the world. Counties west of Atlanta, including Douglas, Paulding and Cobb, were among the worst hit. The National Guard was poised to enter the area if necessary. See photo gallery of flooding » Aerial video of Powder Springs, near the Paulding-Douglas county line, showed scores of homes swallowed by muddy waters as the rain refused to subside. In one Powder Springs neighborhood, a fire truck floated near a cluster of two-story homes, with the charred remnants of one house smoldering a few yards from the failed response. Watch home burn, surrounded by water » Cars, trucks, buses and campers were flung into the currents, sinking near bent signs, fallen trees and downed power lines. Rescuers started rowing through affected areas in inflatable boats. After flying over the disastrous scenes in Paulding and Douglas counties, Georgia Gov. Sonny Perdue declared a state of emergency in those and 15 other counties hit by floods. At least five flood-related deaths were reported across Atlanta-area counties -- three fatalities in Douglas, one in Gwinnett and one, a child, in Carrollton. A Douglas County hospital reported no running water. Just across the line, in Cobb County, the entrance of Georgia's largest amusement park, Six Flags, was sitting in water. Watch the flooding in Georgia » Powder Springs resident Kim Harp woke up at about 4 a.m. ", "Monday as her brother bounded up the stairs from his basement room, reporting water spilling into the home. The family scrambled to save photo albums and other personal valuable, but the water reached a depth of 2 feet in the basement less than two hours later. \"It just came so fast,\" Harp said, adding that the water was at head-level by midday. \"It really terrified us.\" Harp, who lives next door to Jackson, said she and her husband, three children and brother went to bed Sunday after another day of Georgia rains with little worry. After all, she said, the family has a 7-foot retaining wall in the backyard, and it's never even come close to a breach. Watch flooding victims flee » \"It really wasn't a concern,\" she said. Now, without flood insurance, Harp has only one thing on her mind: Clean up. Still, \"where do you start?\" she asked. \"Where does the family go from here?\"" ]

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

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[ "n and simulation with test.\nAnd starting in 2022, we have made the decision to shift our single-seat software licenses to subscription, which will lead to more recurring revenue and better predictability in our business. Second, we focus to capitalize on secular trends by targeting system-level offerings to accelerate our growth. We targeted these offerings at 5G and wireless, electrification and autonomy, and new space applications. We restructured our sales force to increase direct engagement with top accounts in these domains.\nAnd today, these applications and our focus accounts are growing significantly faster than the company and driving our overall growth. Third, we streamlined our business to create a more efficient engagement with customers and to drive scale and leverage in our broad-based business. We invested for multiple years in ni.com, and these investments showed strong return with online order growth up 44% in 2021. We shifted our Tier 3 customers to utilize global distribution partners, and the results from this shift exceeded our expectations in 2021.\nNext, we focus on inorganic opportunities to accelerate our growth strategy. Last quarter, we announced two acquisitions in the high-growth application of electric vehicles, which we expect will add approximately 4% of revenue in 2022. NH Research delivered to plan in Q4, and we are targeting to close on the EV business of Heinzinger in late Q1 2022. I have high expectations for our multiyear growth in this industry focused on the large EV and ADAS investments of our customers.\nWe will continue to prioritize inorganic investments that strategically align to our business in order to accelerate growth. And lastly, we delivered on our commitment to drive efficiency across our cost structure. We better aligned our people to the critical needs of our growth strategy with headcount down 3% year over year in 2021 and a plan to remain approximately flat in headcount in 2022 in a year of expected strong revenue growth. And as I've said, we expect earnings to outpace revenue for the foreseeable future.\n", "The effect of these changes brings increased confidence in our business as we enter 2022. We're in a position of strength with strong demand, record backlog, and disciplined expense management. So our expectation is to now meet or exceed our previous 2023 financial model in 2022, a full year ahead of schedule. As I said last quarter, we expect to deliver 16% to 18% revenue growth year over year in 2022, and we exceed our financial target of 20% non-GAAP operating margin.\nNow onto our industry results for the full year 2021. The areas of intentional focus are delivering to our expectations. I believe this is a proof point that we are focused on the right areas to accelerate growth. We expect double-digit growth across all of our business units in 2022.\nSemiconductor and electronics revenue was $394 million, up 21% year over year. We saw continued strength in our focus area of 5G and wireless communication, which represents more than 50% of revenue for this business, and we continue to see success in new offerings for automated labs in this space. Transportation revenue was $212 million, up 27% year over year. While this business previously correlated primarily to automotive production rates, our shift in focus to EV and ADAS where our customers are making significant investments, has shifted the trajectory of this business.\nWe expect by the end of 2022, these fast-growing applications will represent more than 50% of the revenue in transportation. Aerospace, defense, and government revenue was $370 million, up 8% year over year. This business remains a steady and profitable growth engine delivering year-over-year growth in both 2020 and 2021, led by strength in defense applications and new space investments. And our portfolio business, which represents the majority of our broad-based customers, achieved revenue of $496 million, up 10%.\nIn addition to the favorable macro, our focus on optimizing the channel and better positioning our offerings to these broad customers ha" ]

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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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[ "A Georgia judge threw the book at Brian Nichols on Saturday, giving him four consecutive sentences of life without parole for a 2005 shooting rampage that started in an Atlanta courthouse. Brian Nichols tells the court Saturday in Atlanta, Georgia, \"I will not bring dishonor to the decision to spare my life.\" \"I'm giving you the maximum -- every day I could give you. If I could give you more, I would,\" Superior Court Judge James Bodiford told Nichols. Nichols, 37, was convicted last month of 54 counts for a deadly shooting rampage that began March 11, 2005, in the same courthouse where he stood trial. Nichols, who was being tried for rape, shot three people to death as he escaped from the downtown courthouse that day and a federal agent the next day in Atlanta's Buckhead district before being captured in neighboring Gwinnett County. \"I know that the things that I've done caused a lot of pain, and I am sorry,\" Nichols, who remained seated, told the court before sentence was pronounced. \"And I just wanted to say that I will not bring dishonor to the decision to spare my life.\" Watch victims' family members react to the sentence » Nichols was spared a death sentence Friday after the jury deliberating his fate announced that it could not agree on a sentence. Bodiford gave Nichols the maximum sentence on all the non-murder charges, and ordered them to be served consecutively. Those terms ranged from five years for escape to life for armed robbery. Other charges included aggravated assault with a deadly weapon, robbery by force, theft by taking, hijacking a motor vehicle and false imprisonment. \"It's a large number of years. It's many lifetimes,\" Bodiford said. Bodiford ordered that Nichols serve his time in the Georgia state penal system, forgoing the possibility of sending him to the federal maximum-security prison in Colorado. Bodiford implored Nichols' family and attorneys never to trust Nichols again. \"There's ample evidence that trusting him will get you killed,\" he said in concluding the sentencing hearing. Jurors told Bodiford on Friday night that they were deadlocked, with nine in favor of death and three in favor of life without parole. Under Georgia law, the jurors must reach a unanimous decision in order to impose a death sentence. In the absence of a unanimous jury verdict, the decision fell in the hands of Bodiford. ", "Defense lawyers said Nichols, who confessed to the killings, suffers from a mental disorder. The jurors unanimously found the necessary aggravating circumstances in the four murders, but they were split over the death penalty. After nine weeks of testimony, the jury found Nichols guilty of 54 counts, which included the four murders plus numerous aggravated assaults, carjackings and kidnappings. The shootings began in the Fulton County Courthouse, where Nichols was set to stand trial for rape. He overpowered a sheriff's deputy and took her gun before proceeding to the courtroom of Judge Rowland Barnes, killing him and court reporter Julie Ann Brandau. Sgt. Hoyt Teasley chased Nichols to outside the courthouse, where Nichols fatally shot him. Nichols killed off-duty U.S. Customs Agent David Wilhelm as he worked on a house in Buckhead the next day. He was captured later that day after a standoff with police in the apartment of a woman he had taken hostage in Gwinnett County. The case drew nationwide attention, in part because of the cost of Nichols' representation: about $2 million at last accounting. Nichols had attempted to plead guilty in exchange for a life sentence, but the Fulton County District Attorney's Office would not take the death penalty off the table." ]

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[ "hical coverage. The transition from 4G to 5G is creating a huge change in the way networks are designed and architected. That's why often, we help operators achieve an evolutionary approach.\nWe provide a wireless-based backhaul network that is supporting 4G networks and that can be upgraded cost-effectively to 5G at any point, its capacity by tenfold. We help them optimize their network performance and network resources including reuse of equipment where needed. This total-support approach is how we have built our extensive customer base worldwide, some of whom are recently acquired. This include major Tier 1 operators in North America, Europe, and Southeast Asia, as well as Tier 1 and Tier 2 operators across the globe, plus smaller ISPs and regional players.\nIt's what we believe makes us an essential partner for operators as they evolve to 5G. So, what makes us the technology leader of wireless hauling and even more so when it comes to wireless hauling for 5G? The answer is the combination of four elements. First of all, we are the only player that builds our own purpose-driven chipsets, giving us the tightest integration in the market, functionality, and cost-wise. Second, total vertical integration.\nWe are the only player that does everything in-house from chipset development for microwave and millimeter-wave to complete radio and networking system. Third, we are the only player with leadership in all three domains of the disaggregated wireless hauling network, networking software, networking hardware, and radios. And finally, we believe we are the kings of compact, all-outdoor solutions with nearly 40% market share of the segment as measured by Skylight research firm. Putting all these together, you'll see the full extent of our capabilities, solutions, and roadmap.\nTwo gigabits per second to 100 gigabits per second over a wide range of spectrum going well above 100 gigahertz. This is what is needed to support the capacities and capabilities for any and every possible 5G scenario. Now that we believe we are perfectly positioned to leverage the 5G evolution, the open question is the timing. We see signs that this evolution will start building at a larger scale through the end of 2021 and then go through 2022 and 2023.\n", "The exact timetable might be impacted by COVID but we believe this is the general direction. The U.S. has been deploying 5G since late 2019 and shares leadership of the transition today with China. Network build-outs using wireless hauling for transport across networks have recently begun.\nWe've increased our 5G design wins to nine this quarter and we are participating in numerous 5G proofs of concepts and initial rollouts in the U.S., Europe, and the Pacific Rim. And plans are being finalized for mass rollouts. We anticipate that the first large-scale networks to make use of wireless hauling en masse are likely to pick off toward the end of 2021 and then to pick up speed at first gradually through 2022 and 2023. We expect to benefit from the growth of this market and also to take market share.\nAfter Japan and Western Europe, we expect to see 5G momentum build in the rest of Europe, APAC, and Lat-Am, followed by Africa three years down the road. In the meantime, we continue to benefit from large expedited 4G projects to increase network reach and capacity. In some of these projects, the operators are already fitting in the wireless hauling infrastructure required for 5G. To conclude, we are moving into a new kind of future, building on a growing collective online mobile presence and global hyper-connectivity with full ramification and potential we wait to witness.\nIn this new context, we believe there are and will be an increasing number of business opportunities for us across the globe starting already this year. We are working hard to leverage these opportunities and to continue to be a key enabler of the multi-year 5G evolution. I would now like to turn the call over to Ran to discuss our financials in more detail. Ran?\nRan Vered -- Chief Financial Officer\nThank you, Ira, and good morning, everyone. T" ]

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[ "n Faust -- Executive Vice President and Chief Financial Officer\nOkay. So, end market drivers. Okay, Angela. Giel, would you like to address the end market drivers?\nGiel Rutten -- President and Chief Executive Officer\nYes. Angela, let's try to summarize that. The main catalyst for growth is -- certainly in the third quarter is 5G communication, then IoT, specifically IoT wearables, generally automotive, and in automotive, we see strength in the driver assistance features and also in the automotive power domain, and then of course, high-performance computing in general. But if you look specifically into Q3, we see that the communication market is strong. We expect growth both in the volume of smartphones to be sold in the third quarter, as well as an increase in the number of 5G handsets to be sold. Comparing to last year, it is expected that this year 500 million smartphone 5G-enabled handsets will be deployed into the market, which is a doubling compared to last year, and that drives a significant semiconductor content where Amkor has a good position in the RF domain, but also in multiple other components in the 5G smartphones.\nMegan Faust -- Executive Vice President and Chief Financial Officer\nSo, Angela, just to add to Giel's comments to give you some color, our 21% increase for Q3 at the midpoint are -- the last five years, we've had about 15% increase. So, that significant increase in Q3 we're expecting, as Giel mentioned, is led by communications. Typically, if you look back at our Q3 performance, you'd see around a 30% increase for communications, and we're expecting something around 40% for the communications market.\nAny follow-up questions, Angela?\nAngela Dai -- Credit Suisse -- Analyst\nYeah, sure. About your third Q gross margin guide, it's -- you briefly mentioned about some cost factoring in. Can you elaborate up on that? The mid-20% margin.\nMegan Faust -- Executive Vice President and Chief Financial Officer\nYeah. Angela, are you speaking specifically to the Q3 guide for gross margin or specific to the Q2 actuals? I just wanted to make sure I addressed the right question.\nAngela Dai -- Credit Suisse -- Analyst\nYeah. The 3Q guide.\nMegan Faust -- Executive Vice President and Chief Financial Officer\n", "Okay. Yeah. So, our mid point for the gross margin guide is flat sequentially, acknowledging revenue is expected to increase 21%. So, as you know, gross margin can fluctuate based on utilization or product mix. So, advanced SiP revenue is increasing significantly in Q3. As I mentioned, that is supporting the communications market. And advanced SiP does have a higher material content, and so that's what impacts product mix. However, our gross profit dollars are projected to be up over $50 million, or 20%, and operating income margin is expected to expand around 150 basis points sequentially. EPS is also expected to be up around $0.20, or 40%, to a record $0.70. So, overall, while the product mix can have an impact on gross margin percentage, advanced SiP is profitable, generating good results and cash flow. Any...\nAngela Dai -- Credit Suisse -- Analyst\nAnd a follow up around -- yeah, around your SiP pipeline. Can you give an update of your SiP pipeline, the revenue expectation for the full year? And do you see growing factoring multi-sourcing on some of the consumer audio [Phonetic] products?\nGiel Rutten -- President and Chief Executive Officer\nThanks, Angela. Let me try to answer that question. I think with respect to our SiP pipeline, as we already mentioned earlier, we have a strong pipeline both in the communications segment as well as in the consumer segment. For communication, we see healthy growth in the third quarter. And, of course, we don't guide for the full year, but we expect that to extent in the fourth quarter also. For the consumer end market, we are ramping up several new products in the second quarter as well as in the third quarter. And we see continued strength there, proliferating in multiple products as well as in multiple customers there. So, going forward, we expect SiP to be an important produc" ]

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[ "ate into a much better business skill in the future. And we have also noticed that some of these non-P2P product investors are actually tend to be the larger OEM customers, they actually have a deeper pocket in maintenance take on more volume as we kind of [Technical Issues] are funding from [Technical Issues].\nSo from growth prospect near term, we will maintain even though we're back in the growth mode, but we'll probably still more control growth mode and you know that this is a risk business that you don't want to overrun. And also we still expect certain volatilities in the industry as some of the non qualified P2P platform are being phasing out. So we're still cautious, but we feel outside operations were confident given the growth, but the growth, it's probably [Technical Issues] growth mode. Into next year, we don't have the guidance yet, but as maybe when we are [Technical Issues] provide more clarity with the first half of next year how we see the [Technical Issues] like that.\nNing Tang -- Chief Executive Officer\nYeah, let me also add that strategically our wealth management business is as important as our lending business and we've -- the parent company are quite eager as, yeah, as those been impressive business serving high net worth, ultra high net worth investors in China and our -- this did -- company Yiren Digital is leveraging the capabilities developed through that process to better serve the mass affluent investor community in China. Yeah, I think this is highly differentiated business model and we strive to build a leading wealth management business [Technical Issues].\nAlex Ye -- UBS -- Analyst\nOkay, thanks.\nOperator\nOur next question comes from John Cai from Morgan Stanley. Please go ahead.\nJohn Cai -- Morgan Stanley -- Analyst\nHi, thank you for taking my questions again. So it's very quick follow-up, I think I saw the -- there was one division, there was a spin-off from the company in 3Q. Just wonder if there is any more details or colors about that Division. Thank you.\nDennis Cong -- Senior Vice President-Strategic Corporate Business Development & Capital Markets\n", "I think that's a very small business, yeah, it's very, very small business. Yeah, it's actually a historical business that we have, that's only stop -- actually stopped operation in 2016. So it was just that from transaction perspective that -- yeah. So, yeah, there is very small business residues that has not been fully separate, so which has conducted separation in the quarter.\nJohn Cai -- Morgan Stanley -- Analyst\nThank you.\nDennis Cong -- Senior Vice President-Strategic Corporate Business Development & Capital Markets\nYeah, it's a discontinued business. Yeah, it's just that when we first complete the transaction, business realignment, we had included them in, but now given this discontinued business, so which is complete -- separate, yeah.\nJohn Cai -- Morgan Stanley -- Analyst\nGot it.\nDennis Cong -- Senior Vice President-Strategic Corporate Business Development & Capital Markets\nThanks.\nOperator\n[Operator Instructions] As there are no further questions, I'll pass back to management for closing remarks.\nLydia Yu -- Investor Relations Manager\nThanks everyone for joining the call today. This concludes our third quarter 2019 earnings conference call.\nOperator\n[Operator Closing Remarks]\nDuration: 31 minutes\nCall participants:\nLydia Yu -- Investor Relations Manager\nNing Tang -- Chief Executive Officer\nDennis Cong -- Senior Vice President-Strategic Corporate Business Development & Capital Markets\nJohn Cai -- Morgan Stanley -- Analyst\nEddie Zhou -- Credit Suisse -- Analyst\nAlex Ye -- UBS -- Analyst\nMore YRD analysis\nAll earnings call transcripts\n\n\n\n\n" ]

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[ ", the impact of the COVID-19 pandemic on our business, thus far, has been modest. We are pleased to see our global infrastructure assets play such a critical role in keeping people connected through this difficult time. And in closing, I will make two final points. First, we are energized about the United States as we look out over a multiyear period.\nWe expect the new wireless landscape to drive higher levels of network deployment activity as C-band spectrum becomes available, DISH begins rolling out their network and 5G activity across the industry ramps up. And second, our international markets also show great promise as our primarily large multinational tenants continue to invest heavily in their networks, including around $30 billion expected in 2020. Networks across the globe are seeing tremendous growth in mobile data usage as consumers gain access to advanced handsets and applications, and we expect a long cycle of carrier capital spending to support these trends. From our vantage point today, we continue to be excited about the future of wireless communications and the central role our real estate will play.\nWith that, operator, will you please open the line for questions?\nQuestions & Answers:\nOperator\nThank you. [Operator instructions] Your first question comes from the line of Matthew Niknam. Please go ahead.\nMatthew Niknam -- Deutsche Bank -- Analyst\nHey, guys. Thank you for taking the question. Just two, if I could. First, on the U.S., if you can give us any additional color on what you're seeing in your discussions with the new T-Mobile, whether this delay is really timing related or have there been any changes in terms of spending plans in there and relative to earlier expectations? And then just secondly, on the ATM Program, can you help us think about the investment opportunities you're evaluating and the decision to use equity, and the potential means of funding this relative to the debt you've traditionally used, given where your leverage sits today? Thank you.\nTom Bartlett -- President and Chief Executive Officer\nYes. Matt, this is Tom. On the T-Mobile side, based upon everything that I think they've said publicly, I think it's fair to say that it really is just timing. And they're working through all their plans.\n", "They closed their deal in April, and then settled their transaction with DISH not that long ago. So we believe it clearly is timing and are looking forward to really supporting them as they continue to really build out their network even further. On the ATM side, really, it's good plumbing. It really is just having more flexibility.\nIt's not a significant number, clearly, compared to general ATM Programs as part of market cap. So it really is just kind of good plumbing to have a flexibility of having access to a number of different sources of capital.\nMatthew Niknam -- Deutsche Bank -- Analyst\nIf I could just follow up. Go ahead, Rod.\nRod Smith -- Executive Vice President, Chief Financial Officer, and treasurer\nI'm sorry, Matt. Yes, let me just add a couple of points on the U.S. growth. No.\n1 is, everyone kind of saw the slowdown from T-Mobile toward the middle to third quarter of last year. Now that we're almost lapping that slowdown, that's where — the further away from the beginning of that slowdown, the bigger impact that it has on the organic tenant billings growth deceleration. So the fact that they haven't started up yet is that's causing us to reduce our outlook from above 5% down to about 4.5%. And the other expectations in the U.S.\nindustry remain the same. So we haven't seen any changes in our expectations relative to the other carriers or anything else going on in the U.S. It really is isolated to the new T-Mobile and the timing of when they begin spend.\nMatthew Niknam -- Deutsche Bank -- Analyst\nThat was going to be my follow-up. Appreciate it. Thank you.\nOperator\nYour next question comes from the line of Batya Levi. Please go ahead.\nBatya Levi -- UBS -- Analyst\nGreat. Thank you. Just to follow up on the U.S. activity.\nCan you provide an update on how you think about the poten" ]

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[ "the macro environment is still a risk, and there's also regulatory risk.\nOver the past few months, there has been a further tightening of the regulatory regime, especially in relation to online activities. The operating environment for financial institutions and their partners has become more challenging. While we do anticipate difficult moments ahead, opportunities are also abound. The need to invest in IT, proper IT has never been greater, be it to replace an outdated system or to adopt the first ever cloud-based solution. Chinese regulators have put their weight behind technology and technology companies. They have strong policy initiatives for digital infrastructure.\nAs the market becomes more competitive, all players have to explore new ways to do business, capture new revenue opportunities, increase efficiency, and improve customer experience. This is exactly what OneConnect aims at achieving. This is why we are confident that revenue growth rate in 2021 will be no less than the past year. With continuous cost discipline, our net loss will further narrow. We expect the improvement in the net loss ratio this year to be in the double-digit percentage.\nLet me talk more about what we have been doing to drive the business further. OneConnect's mission has always been to be the top -- the one-stop shop for financial institutions. We started at the application level. The different applications like car components in the auto analogy we put in the slide, were then connected and turned into a total package, like car manufacturing. This represents our end-to-end approach, which enhances our value propositions to customers.\nThe rollout of the cloud services platform in 2020 completed the picture, taking us from SaaS applications for middle office services into core systems and finally penetrating down to the cloud. The depth and breadth of our solutions are unparalleled, giving us a unique edge in the TaaS market.\nWe are able to couple the full cycle needs of financial institutions, starting from sales and marketing to product development, risk management, operation management and infrastructure. This diversification allow us to meet the needs of financial institutions across different macro scenarios, ensuring also the resilience of our performance through cycles.\n", "Products and customers are like the twin engines that power our business. At the product level, we have reinforced lifecycle management and monitoring. This is part of the optimization exercise. Resource allocation and assessment criteria are set according to the stage of development of our product. Sales strategy is [Indecipherable] linking products to customers. We have adopted a differentiated sales approach. The needs of a nationwide bank are not the same as those of a regional player. The scale of asset, complexity of products and customers profile, risk appetite and availability of internal resources can be miles apart. Customer segmentation and more proactive pipeline management enable us to more effectively up-sell and cross-sell.\nOne of the results from the ramping up of sales and solution is our Digital-Bank-in-the-Box. The different modules on offer are supported by the infrastructure backbone and our expertise. Our initial institutions can make them match, depending on their stage of development and needs. Of course, picking up the whole package will give the best performance.\nIn Southeast Asia, we just signed a contract with a leading regional bank to provide such all-around digital support. For that particular client, our offering spend from core banking to mobile banking, open banking, lending platforms and data platforms. Our virtual bank in Hong Kong, PAOB is another example showcasing our all around capability.\nIn insurance, we have also moved from modules to an integrated approach. Sitting at the core is the smart claim solution, comprising different modules. The contract size goes up, as our customers upgrade from single modules to end-to-end system, as well as service. The new customers added this year show the potential. So far, our insurance " ]

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[ " by the ongoing investments in 5G and 400 gig, 800 gig Ethernet solutions for data centers. As 5G progresses and deployments drive sustained investment, we are uniquely positioned to capture the opportunities ahead as the ecosystem scales. Recent engagements include a broadening set of new customers, as well as key industry players such as NEC, Fujitsu, and MediaTek.\nWe continue to maximize the 5G life cycle opportunity and lead the industry with differentiated 5G solutions. In addition, the success of our application layer strategy is reflected in the strong demand for new technologies such as O-RAN and business expansion in new end-to-end verticals. Our ability to provide complete solutions for network protocol test, security, and visibility is enabling us to solve many challenges across the industry. In another area of disruption, we continue to advance our long-term initiative to enable the quantum revolution.\nWe are growing our quantum engagements with key customers worldwide. We also expanded our quantum solutions portfolio this quarter with the acquisition of Quantum Benchmark, which brings deep expertise in the performance validation software for quantum computing. Keysight's software-centric solutions in higher-value services continue to drive differentiation and recurring revenue growth. For the second quarter in a row, software and services each delivered double-digit order and revenue growth.\nBeyond innovation, execution, and financial discipline, Keysight's culture has long embraced corporate social responsibility. We believe our focus on climate and diversity provides us with a competitive advantage. We recently published our annual CSR report, which includes progress toward our prior goals and the announcement of our commitment to achieving net-zero emissions in the company operations by 2040. We are working to set interim science-based targets to ensure our progress toward this goal.\nDiversity and inclusion are also embodied in our Keysight leadership model. As a CEO priority, we have specific goals and actions that will be tracked by our leadership team and the Board of Directors. Diversity and inclusion brief will be published this month that describes our long-standing D&I philosophy, as well as the details of our strategies and goals. While there is more work to do, Keysight remains steadfast in our commitment to CSR and building a better planet.\n", "As we look ahead, we are encouraged by the strong demand for our differentiated solutions while managing the longer lead times and component availability constraints. Our in-house high-performance semiconductor fab and the strength of our order fulfillment team are helping us manage these near-term supply challenges and give us confidence in our ability to navigate them entering the second half of this year. In summary, Keysight is enabling disruptive innovation across multiple waves of technology with a decades-long runway ahead of us. Our execution in the face of many dynamic challenges this past year is a testament to the Keysight leadership model, our employees, and the breadth and depth of our customers.\nNow I would like to turn it over to Neil to discuss our financial performance and outlook in more detail.\nNeil Dougherty -- Chief Financial Officer\nThank you, Ron, and hello, everyone. As Ron mentioned, the Keysight team delivered another outstanding quarter and better-than-expected results as robust demand for our differentiated solutions and continued macro recovery resulted in strong growth across all regions. Second-quarter revenue of $1.22 billion was above the high end of our guidance range and grew 36% or 33% on a core basis versus a soft compare due to COVID-related disruption. Q2 revenue growth was driven by broad strength across all markets and geographies as the Keysight team navigated macro-dynamics and supply chain constraints.\nWe achieved second-quarter orders of $1.332 billion, up 22% or 19% on a core basis. Turning to our operational results for Q2. We reported gross margin of 64%, which increased 170 basis points. Operating expenses of $" ]

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[ ", more applications and a higher burden that's put on the smartphones in 5G.\nAnd that's all good stuff for us. It gives us the opportunity to come in with our solutions all the way from TC-SAW to bulk acoustic wave, assembly and test, packaging in-house in our own fabs. So we're really excited about it. So we do see continuous growth in content, but the content is getting harder.\nIt's not more things. It's more complex things. And so, you need to have an architect that could bring this together and make it easier for our customers to assimilate. That's what we do.\nSo every year, it's not just phone to phone, the phone -- the technology and the complexity within the device is rising. And that, for us, is very, very good, and it limits the competition, and it puts us in a great position to delight the customer. So we look forward to that. And overall, 5G penetration at a high level is still very low right now globally.\nThere's a lot of room to move from here. And there's a lot of upgrades that haven't yet commenced. So we're looking forward to it, but the technology is not stagnant. It continues to get tougher and tougher, higher bar and opportunities for just a few players like Skyworks to execute.\nTristan Gerra -- Robert W. Baird -- Analyst\nGreat. Thank you.\nOperator\nThank you. Our last question comes from Kevin Cassidy of Rosenblatt Securities. Sir, your line is open.\nKevin Cassidy -- Rosenblatt Securities -- Analyst\nThank you. Thanks for taking my question. I just wanted to understand a little more about your order visibility. Are you getting orders that are -- do they have to be scheduled now into the fourth quarter or even going out to the fourth calendar quarter, that would be -- or the first quarter of calendar 2022?\nLiam Griffin -- Chairman, Chief Executive Officer, and President\nYes. Well, I mean, in general terms, the ability to get that demand through has been impeded, right. We discussed through the call today. I would say that Skyworks uniquely, with our own fabs, our own assembly and test and assets, we're a manufacturer, as well as a developer of technology.\n", "So we should be able to do better than peers that are more fabless. But at the same time, we're all dealing with this global chip shortage as we say. And so, that is an impediment to demand. We talked a bit about that, and hopefully, that can be unstuck to some level, but we are working with our customers closely.\nWe're doing a -- our teams are working very hard to resolve any impediments in demand execution. And we certainly think that it will abate over time, but it does play through in the current quarter and into the second half of it.\nKevin Cassidy -- Rosenblatt Securities -- Analyst\nOK. Great. And just to make sure I understand that. So if your customer isn't getting the full bill of material, they're asking to hold up deliveries, they're not building inventory of your product waiting for other products?\nLiam Griffin -- Chairman, Chief Executive Officer, and President\nYes, somewhat that's true. It just depends on how it's going. Sometimes our parts are ready, and we're not holding anybody up, but someone else is holding us up, right? So it's kind of a -- everything has to be complete for an end product to ship. So anything in the food chain that goes sour, it could be an impediment.\nBut I think we'll navigate our part and we do see some -- the cloud is kind of clearing here in the next couple of few quarters and we should benefit from that.\nKevin Cassidy -- Rosenblatt Securities -- Analyst\nOK, great. Thank you.\nOperator\nThank you. Ladies and gentlemen, that concludes today's question-and-answer session. I'll now turn the call back over to Mr. Griffin for any closing comments.\nSir, please go ahead.\nLiam Griffin -- Chairman, Chief Executive Officer, and President\nThanks, everyone, for participating today. We look forward to talking to you at our upcoming conferences in the quarter. Thank you.\nOperator\n[Operator signoff]\nDuration: 57 minutes\nCall participants:\nMitch Haws -- Investor Relations\nLiam Griffin -- Chairman, Chief Executive Officer, and Pre" ]

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[ "built from customized and entirely new types of silicon. Third, the benefits of traditional Moore's Law 2D scaling are slowing down, and the semiconductor industry is transitioning to a new playbook to drive power, performance, area, cost, and time to market. As the PPACt playbook is adopted, it is driving a step-up in investments across the ecosystem. Fourth, there's an increased focus on ensuring that growth is sustainable and responsible as the industry scales, and advancing energy-efficient computing is critical.\nAnd fifth, there's a business model inflection as companies migrate away from products and transactions to outcomes and deeper collaborations focused on speed and time to market. These five factors add up to strong and strengthening demand for wafer fab equipment and advanced services that we believe is sustainable well beyond 2021. For the first time, customers are providing capital spending guidance for multiple years into the future, which is a new leading indicator for demand sustainability. In 2021, we expect foundry/logic to be the fastest-growing wafer fab equipment market with strong investments in both leading edge and specialty devices.\nDRAM is the next fastest-growing market, with all major DRAM manufacturers investing in new technology and capacity. Finally, we see NAND growing at a more modest rate this year on the back of about 30% growth in calendar 2020. More importantly, Applied is outperforming the overall market. Recent VLSI market data confirmed that our semi-equipment business grew 23% in 2020 versus market growth of less than 19%.\nWe outperformed even though the device mix would not typically be considered favorable for Applied. There are several reasons why I'm confident 2021 will be another strong year of outperformance. To start with, our leadership areas are in the fastest-growing parts of the market. We expect CMP epithermal implant to all grow more than 50% this year.\nNext, we're very well-positioned to serve the fast-growing specialty markets. We anticipated this market growth several years ago and formed a new group inside the company called ICAPS to focus on IoT, communications, automotive, power, and sensor applications. In addition, we have strong traction with new products, especially in areas where we have space to grow share. In 2020, we gained 240 basis points of market share in conductor etch and 220 basis points in CVD, thanks to the momentum we have in patterning applications for DRAM and foundry/logic.\n", "This year, our etch and CVD businesses combined will generate more than $7.5 billion of revenue. In process diagnostics and control, we expect to grow around 50% in 2021 and generate more than $900 million of revenue from our e-beam products. Extending our leadership in e-beam has been a major focus as it is a highly strategic capability that accelerates adoption of our differentiated semi products in integrated material solutions, as well as being a key component of our actionable insight accelerator. Finally, we're seeing increasing adoption of our integrated solutions where we're bringing together unique combinations of technologies and capabilities.\nIn 2021, we expect to generate more than $400 million of revenue from our first Integrated Material Solutions. In addition, revenues from our advanced packaging product portfolio are on track to exceed $800 million, almost doubling since 2019. Looking beyond the strength in our business today, we believe we're in a great position to deliver sustainable outperformance over multiple years. As the industry roadmap transitions from traditional 2D Moore's Law scaling to the new PPACt playbook, materials engineering becomes critically enabling.\nThis is because significant PPACt innovations in transistor and interconnect, structures, and materials are taking place and these innovations are enabled by Applied's leadership technologies. We'll cover this topic in more detail at our upcoming logic masterclass. As we described at our investor meeting, to serve our customers' evolving needs and maximize our growth opportunities, we'v" ]

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[ " trend that's important is many of the customers for chips are moving to adjusting case inventory posture, which means not only just buying what they need but also putting some insurance in place from a parts standpoint.\nAnd finally, you've got the number of regions in the world trying to become self-sufficient in chips, which is driving even more equipment. So I think WFE is likely to grow quite well in 2022. And probably, as an industry, we're going to be limited by parts, right? So it hits us, it hits the rest of the critical subsystem suppliers and it hits our customers. And so we all have to work together and make sure we get the parts we need to expand capacity in this very important ecosystem.\nMehdi Hosseini -- Susquehanna International Group -- Analyst\nSure. Thank you. And just a follow-up to that. The same OEMs have a consistent message that this is secular and we are in a new paradigm shift, especially with localization and WFE will continue to grow probably through 2025.\nAnd given the premises what are the opportunities? Or what would it take for your OEM customer to become a partner with you and co-invest for supply chain, for hub inventory management so that once we come out of this later this year, both parties are able to help each other and benefit from these secular trends?\nSteve Kelley -- President and Chief Executive Officer\nYeah. Mehdi, I think really it's not a question of money. We have the ability to expand our own capacity relatively quickly and at relatively low cost. The issue is getting the part.\nSo it's really our suppliers expanding their capacity and their ability specifically to build more product at older nodes. So almost everything we buy is 28 nanometers to 180-nanometer type product. So it's mature. And it's been in contention this year as the automotive industry came back to life and basically economies boomed around the world.\nSo we're all fighting for that limited capacity. So what's happening today is we're seeing the IDMs make more investments in older nodes. And we're also seeing the same things happening at the foundries. So it takes some time to bring the capacity down, but it will come.\nAnd I think over the next six to 12 months, we're going to see things settle down.\nMehdi Hosseini -- Susquehanna International Group -- Analyst\nThank you, Steve.\nSteve Kelley -- President and Chief Executive Officer\nYou're welcome.\nOperator", "\nOur next question comes from the line of Tom Diffely with D.A. Davidson. Please proceed with your question.\nTom Diffely -- D.A. Davidson -- Analyst\nYes. Thank you for the questions. Steve, just following up on Mehdi's question. So they think the OEMs will require you to hold a larger inventory going forward or maybe have a larger hub inventory going forward?\nSteve Kelley -- President and Chief Executive Officer\nWell, yeah, I think that two things will happen. One is our OEM customers will rebuild their safety stocks, and they may adjust those stocks a little bit depending on their risk tolerance. So that's probably going to be good news for us. The second is we're examining our own supply chain.\nAnd where we can, we're going to build inventory where we identify weak links. And we're also going to upgrade. So in many cases, we're buying parts that are built in factories that may not have a long-term expansion plans. And so at that point, it's up to our engineers to upgrade the technology so that we're using parts that will be available and plentiful for many years to come.\nSo those two actions will be proceeding this year.\nTom Diffely -- D.A. Davidson -- Analyst\nOK. Great. And maybe just a little bit more color on the supply dynamics. When you get a slug of product like you did in the fourth quarter, is that driven by your core suppliers just giving you more allocation? Are they actually producing more? Are you finding new suppliers or possibly even buy markets?\nSteve Kelley -- President and Chief Executive Officer\nWell, in this case, there was a couple of our core suppliers who allocated more to us. And there's a lot going on behind the curtain, quite frankly" ]

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[ "Q3 that you're going to -- we're going to be looking at a different -- a tougher compare as we go into next year, on the --certainly on the medical side. On the other hand, Industrial should again if barring no huge disruption on the COVID front, should start improving as we go into 2021.\nSo, the forecast there in the 2% to 4% kind of range, that's what we would be fighting to achieve. I think the first half of the year may be tough, but the second half could get a little bit better. And then networking communications, we are impacted right now by the slowdown in 5G spend, predominantly out of China. China has been driving the bulk of the equipment purchases for 5G infrastructure requirements. I would expect that the U.S. and Europe will pick up that demand and that we will see Phase 3 out of China. So, I think good reasons to be positive on the networking, certainly the telecom portion of network and communications, which is about slightly higher than a third of the business for us and then can peek at around half of the business for us when it really is moving. So networking communications should -- looking to a more positive 2021. So that's the mix, I think that's a great benefit of having this diversified end market exposure. I think we'll be seeing some markets continuing to improve strongly. Some markets that may slow -- that may have experienced heightened demand with the COVID situation falling back a bit, but a good mixture of businesses.\nSrini Pajjuri -- SMBC Nikko Securities America -- Analyst\nThank you, that's great color. And then I have one question for Todd as well. Todd, utilization at roughly 63%, and then the gross margins have come up nicely here. So I'm just in -- as we look into the next 12 to 18 months, can you talk about some of the puts and takes of gross margin and any potential for further improvement here outside of the mix itself and how high do you think that utilization can go before you need to increase capacity?\nTodd B. Schull -- Executive Vice President and Chief Financial Officer\n", "Well, so utilization is a challenging metric. It's an important metric, but I say it's challenging because we have kind of two different business models. In North America, we have more of a high mix, low volume business model and so utilization levels are inherently going to be lower. And so when we say we're operating in North America, at around 63% to 65% that's actually a very good number in North America. Getting up close to 70% really, really stretches us and we've been selectively adding capacity here and there in North America to try to increase our ability, our production capacity. Now, in Asia, though, it's a different story. The business model there is more geared toward mid-to-higher volumes and lower mix and so utilization becomes a much more important factor, and quite frankly 63% utilization in Asia is not a good number. And there is a lot of upward opportunity to improve, we have capacity in several of our key plants. These plants in China tend to be driven by our commercial end markets, as Tom, mentioned A&D is really in North American market. So you have to watch what's going on with our networking and communications end market. Our medical, industrial, instrumentation end market, and automotive end markets particularly and computing will play into there also. Those who -- so what's happening in those end markets will really drive utilization, and utilization is a key factor for us because we have a fairly significant fixed cost elements in our business, there is a lot of equipment involved in what we do, and a lot of technology and so there's a lot of leverage in the business model. So there is quite a bit of opportunity to grow on the commercial side, more constrained in North America, although, we still have some upside opportunity there too.\nSrini Pajjuri -- SMBC Nikko Securities America -- Analyst\nGot it. And just one clarification, you said, you're going to retire the convert in the December quarter, does that or will that have any impact on the share count going forward? Thank you.\nTodd B" ]

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[ "ring that we have a technology leadership, not only today, but also longer term, why we invest more in Bell Labs and also the NGP, our venture fund that Pekka just mentioned.\nAnd in both of these areas, we also have a business in. When it comes to NGP, we just announced today a new fund, Fund V, and that's about a USD 400 million fund that we'll invest in the next coming years in areas that are strategically relevant to Nokia. And if you look at the track record of NGP, it's being very good. So far, they have had about 15% to 20% IRR at maturity.\nIn addition to that, of course, the good financial position that we have, we have to secure that we can fulfill those commitments we have toward our customers. And that's why we will intelligently think how to increase the inventory levels that we have, especially in these situations where we see that there's supply chain constraints. And if we look at our working capital rotation days, we've seen a pretty good development in the past two years' time. And also, the inventory rotation days have been declining in a nice way.\nAnd I'm not worried about if we increase inventories, inventory levels as such because that will definitely benefit our top line and margins. You see a slight increase in accounts receivables toward the end of the year. And I would say that this is mainly because of we reduced the sale of receivables. So the underlying development is very good.\nAnd when it comes to the distribution to our shareholders, thanks to the strong liquidity position that we have. Actually, the board of directors have today proposed to the AGM a EUR 0.08 of dividend for results of 2021, and this will be paid on a quarterly basis. Also, to manage our capital structure and excess cash, the board of directors will initiate now a share buyback program with the intention of repurchasing up to EUR 600 million over the next coming two years. And let's go over to '22 outlook and giving some more details of each of these three different areas.\n", "And just stating the outlook itself on the net sales side, EUR 22.6 billion to EUR 23.8 billion, and the comparable operating margin between 11% and 13.5%. Free cash flow, we actually have changed how we guide that in the future. So now it's a conversion from comparable operating profit to cash flow. And we believe that in 2022, that will be between 25% to 55%.\nAnd let's look into each of these in a little bit more detail, what is the background and support for these. Starting with the top line. If we look at the operating -- the addressable market, we see that it's growing about 3% on constant currencies. And we see growth across all businesses.\nIn Mobile Networks, the driver is 5G deployments. In Network Infrastructure, it is connectivity, investments in national broadband initiatives and also the fixed wireless. And when it comes to cloud and network services, we see continued growth in enterprise sector, especially in private wireless, but also Webscale like Edge computing. And regionally, I would say that we see growth in all regions, especially in North America, Europe and Asia Pacific.\nAnd of course, without the constraints that we see in the supply chain, I think we would see higher growth than this as well. Just a couple of words about Mobile Networks as well. This is now excluding China. And Network Infrastructure is excluding the Submarine business.\nAnd mobile networks growth of 3%. I would say that if we compare with external analyst firms like Dell'Oro, this is pretty much aligned with their expectations as well. This is now in constant currencies in euros, while they usually have USD. And also the perimeter is a little bit different.\nThey only look the RAN while we have a little bit wider perimeter. And if we look at operating margin, we can see that starting from '21 and excluding the one-offs, about 150 basis points we land at 11%. And we see that sales growth and operational improvements will be the main driver of the margin improvements during this year, of course, tempered by the impact from supply chain costs, general cost inflation an" ]

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

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

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[ "scussion to be had. Now the press is talking about it in India. Now there's meetings happening that are going to talk about how we get to the next step. So that's generally our approach with international expansion.\nAnil Gupta -- Vice President, Investor Relations\nOur next question is about Coinbase Cloud. What update can we provide for shareholders there? Are there other principal hurdles? What are the principal hurdles to growth, education, functionality, or anything else? Brian?\nBrian Armstrong -- Co-Founder and Chief Executive Officer\nYeah. So Coinbase Cloud, I'm really excited about. I mean if you just again zoom out, crypto is such a new market. That means there's a lot of start-ups being funded that are coming in to build applications in this space.\nAnd it's not just start-ups. There's actually existing fintech companies, neobanks, traditional financial service companies, they're all thinking about how they integrate crypto. Their customers are asking for it. And even nonfinancial service companies, by the way, want to accept crypto payments or they're integrating crypto into their Web2 companies.\nSo I actually think, like, in the same way, that most companies use the Internet now, I think most companies are going to end up using crypto in some way, shape, or form in the future. And they don't need to reinvent the wheel. Coinbase has spent a lot of time and energy over the last 10 years building a lot of these core technologies like how to store crypto securely and how to connect into all the blockchain to make sure they're staying in sync, how to do blockchain analytics to make sure it's done in a compliant way and how to trade crypto and stake and mint NFTs and index all of the metadata that's out there. It's almost like another segment of the Internet that needs to be -- needs -- companies need help accessing it.\n", "And so I think for many of these companies, they're not going to want to -- in the same way, they don't want to run their own data center, unless that's their core competency, they're going to use a cloud product. Well, for many of them, crypto is not their core competency, but they do want to integrate crypto into products, so they can use the vendor. And my hope is that -- basically, Coinbase is going through a transition where many of these services that we've had to use internally for our products over the years, we're now in the process of externalizing them through our Coinbase Cloud product and building that in a way that's robust. It actually makes our internal services better to have them cleanly decoupled and architected in a way that any third party can also use them.\nThe question also asked about growth in education and things like that. So of course, first, we just need to get the product functionality to everyone. I mean that's a good first step. But we started sponsoring hackathons, engaging with the developer community in various countries around the world, there's -- it's pretty exciting to see the amount of interest from developers.\nBy some indications, the most common elective in computer science programs today is like AI and crypto are the two biggest ones. So I think as more and more crypto companies keep being built and the existing companies integrate it, we're just going to sell picks and shovels during this gold rush.\nAnil Gupta -- Vice President, Investor Relations\nGreat. OK. Well, let's switch gears and take some live questions from our analysts. Operator, can you start up, please?\nQuestions & Answers:\nOperator\nYour first question comes from the line of Pete Christiansen from Citi. You're now live.\nPete Christiansen -- Citi -- Analyst\nThank you. Good evening. I was just hoping if you could qualitatively give some color on how funded account retention is looking in cost of acquisition there. Just generally, what trends are you seeing now year to date, and perhaps how they differed from last year? And then finally, I look at your balance sheet, and looks like cash is more than a third of your market cap right now.\nAnd I know there's a lot of reserved firepower there. But is the" ]

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[ "As Secretary of State Hillary Clinton continues high-level talks with Mexico's leaders this week, her comments about responsibility in the U.S.-Mexico drug trade have struck a chord with officials familiar with U.S. anti-drug efforts. Mexican federal police have been deployed openly in Ciudad Juarez, which borders El Paso, Texas. Clinton said the United States' \"inability to prevent weapons from being illegally smuggled across the border\" was a major contributor in Mexican violence along the border. She went on to say that the United States has \"a co-responsibility.\" In an interview Wednesday on \"American Morning\" with CNN anchor John Roberts, former Drug Enforcement Agency special agent Robert Strang talked about the three-pronged approach needed to curb drug use in America and the need to bust distribution rings. Strang is also CEO of Investigative Management Group. The following transcript has been edited for brevity and clarity: John Roberts, CNN anchor: Everybody's blaming Mexico for [the U.S. drug trade], but the secretary of state yesterday said, 'Hey, the United States shares a lot of the blame because of the pent-up demand here, the insatiable demand for drugs.' Do you agree with her? Watch Clinton say, \"We have to do a better job\" » Robert Strang, former DEA special agent: Let's face it, the average first drug use is 12 years old in our country. That means kids that are in the sixth grade are trying drugs for the first time. Marijuana, cocaine, heroin, methamphetamine, all these drugs are coming across the border because we demand them. We have the cash to pay for them, and we really are pretty much the No. 1 consumer in the world for these drugs. Roberts: Is the United States doing enough to try to curb demand? The Office of National Drug Control Policy, I don't remember much coming out of it during the Bush administration, and I haven't seen anything come out of it in the Obama administration. Strang: We're trying all the time. I'm on the board for D.A.R.E. America, and that is teaching kids about the dangers of drugs and violence in schools. And constantly, we're trying to get money federally for this program and police officers go into the school. They teach the kids. ", "It's a wonderful program in those trouble years, the fourth, fifth and sixth grade especially, and we need to have a little bit more money in this area. amFIX: React to Strang's comments about U.S. anti-drug effort There's three things, John: It's treatment, it's enforcement and it's education. And it's like a three-legged stool. If all three things don't work, it's going to fall down. So, we can send all of the agents in the world down to the border. We can seize all the coke, heroin, methamphetamine that we want. If we don't have treatment on demand, and if we're not educating our kids in our country about the dangers of drugs, the problem's going to grow. Roberts: When you see the Department of Homeland Security prepared to spend these hundreds of millions of dollars on border security, what do you think? Strang: I'm happy that they're doing something. This is a small piece of the enforcement operation. The best thing to do is like the case that we saw three weeks ago, when the DEA announced 750 arrests involving 250 cities between Mexico and the United States, mostly in the U.S., this huge distribution network. Because when you dismantle those networks that constantly are putting drugs from the cartels to the street, when you can put those guys in jail, when you take their assets, then you have an impact. Watch how drugs from Mexico enter U.S. » Roberts: But would you like to see them take some of that money, and you know, they take, I think, what, $700 million, and they throw it at the border. Would you like to see them" ]

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[ "For 8-year-old Ryan Mohar, an elevator isn't just an elevator. He spends hours pressing the buttons and riding up and down, preferring this to the slew of alternatives that his teachers offer -- even candy. Ryan Mohar, who has autism, gets treated with ABA approaches at the Marcus Autism Center. Ryan is one of many American children with autism, a neurological disorder characterized by repetitive behaviors or limited interests, and difficulties with communication and social interactions. At the Marcus Autism Center in Atlanta, Georgia, Ryan and other children with communication and behavior difficulties get help through a rigorous empirical method called Applied Behavior Analysis. \"Decades of research has shown that that is the treatment of choice, and results in the best gains in terms of skill acquisition and behavior problem reduction for kids with autism and other developmental disabilities,\" said Alice Shillingsburg, program coordinator of the center's Language and Learning Clinic. The effectiveness and nature of ABA is particularly relevant as many parents fight for insurance companies to cover it and other autism treatments. The organization Autism Speaks has endorsed bills in 25 states that would require private health insurance policies to cover the diagnosis and treatment of autism spectrum disorders for anyone under the age of 21. The legislation would specifically be targeted at ABA and other structured autism therapies. Only eight states have autism insurance reform, according to Autism Speaks. While ABA encompasses a broad range of practices of studying and changing behavior, the one usually associated with autism is called discrete trial instruction. A trial consists of a cue, the opportunity to respond and a reward. Watch therapists using applied behavior analysis on Ryan » For example, a therapist might try to teach a child who likes sweets to request candy. The trial gets repeated over and over so that the child learns that candy comes only as a result of the request. The clinicians at Marcus Autism Center carefully record how many trials the child successfully completes. Learn more about autism » \"If suddenly they can emit some vocal response, and suddenly when they do that, candy appears -- someone delivers candy to them -- that's a very powerful response for that child,\" said Nathan Call, director of Behavior Treatment Clinics at the Marcus Autism Center. Analysts examine progress based on such data at least once a day -- sometimes five or six times a day -- and will change the treatment plan if necessary. In Ryan's case, a trial begins when his clinical specialist takes him near the elevator and asks him to hand over a card -- his way of requesting access to the elevator. ", "If Ryan gives the card, he gets to go to the elevator, and that is the end of one trial. If he does not, his helpers walk him away, and a new trial begins. Experts working with Ryan hope that teaching him to ask for the things he enjoys -- elevator rides, elevator buttons -- will help him stop running away, which he does even at home. In fact, Ryan wears a GPS-equipped ankle bracelet so that police can track him if he gets far from home. ABA is very effective, but the term \"cure\" is inaccurate, experts said. Autism describes a broad range of characteristics, not an underlying cause, Call said. ABA techniques can produce significant behavior changes, however. \"The goal is not necessarily for the child to have hit all of their developmental milestones, necessarily, but rather it's hopefully to get them to a point where they're able to take advantage of a more typical or less restrictive educational environment,\" he said. Studies have shown that 60 percent of high-functioning children can lose their diagnosis of autism by age 8 by using ABA, according to the Kennedy Krieger Institute, a leading center in autism research and treatment in Baltimore, Maryland. Not everyone is so enthusiastic about ABA, however. Dr. Max Wiznitzer, associate professor of pediatric neurology at Case Western Reserve University in Cleveland, Ohio, cautions that the treatment should fit the child, and ABA may not work as well for some children" ]

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[ "Atlanta (CNN) -- A woman charged with sending threatening packages to two lawmakers, including a U.S. representative, was killed Sunday after she tried to attack a police officer at her home near Atlanta, police and the lawmakers said Monday. Jameela Barnette, 53, was armed with a knife and handgun when a police officer knocked on her door on Christmas morning as he responded to reports of an alarm inside, Cobb County Police said. She opened the door and started assaulting the officer with the weapons, police said. The officer shot her, and Barnette died at the scene. Barnette was the same woman who sent threatening packages earlier this year to U.S. Rep. Peter King of New York and New York State Sen. Greg Ball, their offices said Monday. Barnette was indicted in U.S. District Court in Atlanta in October on two counts of sending threatening packages. She pleaded not guilty in November and was released on $20,000 bond, according to court records. Earlier this month, the court also ordered Barnette to undergo a mental evaluation. The package sent to Ball contained a hoax weapon of mass destruction, said Ball spokeswoman Brittany Oat. The indictment said it contained threatening messages and a vial of an unknown liquid, labeled \"Zyklon B,\" which Barnette indicated was a biological agent or toxin. The vial of liquid was in fact perfume oil, according to CNN affiliate WXXA-TV in Albany, the New York state capital, which spoke to Barnette in April. The package also contained a toy monkey wearing the Star of David, as shown in photos released by Ball's office. Barnette told WXXA-TV she was a grandmother and a Muslim upset with Ball for holding hearings earlier this year on New York City's vulnerability to terrorism. \"He keeps messing with Muslims,\" Barnette told the station in April. \"Muslims have not been harassing anyone.\" Barnette said she was not a threat and did not want people to think she was a dangerous person for sending the package. A representative for Barnette could not be reached Monday. Also in April, Barnette sent a bloody severed pig's foot and note to King's office on Capitol Hill, King said Monday. The package never reached King or his staffers because all mail to the U.S. Capitol is screened. The note was laced with anti-Semitic rants, including statements such as \"evil Jews will return this hoof to Palestine,\" a congressional source familiar with the situation said at the time. King is not Jewish. ", "\"The woman, who called me a 'Muslim basher,' wrote 'kiss my black Muslim ass,'\" King said in a statement Monday. \"I believe this was all a result of the blind and false hysteria stirred up by opponents of the radicalization hearings I convened in March,\" King said. The officer who fired on Barnette on Sunday was treated for his injury and released at the scene, and is now on administrative leave pending investigation, according to the police department in suburbuan Atlanta. CNN's Ashley Corum, Carol Cratty, Sara Pratley, and Melissa Gray contributed to this report." ]

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[ "d like that might be in Asia or other regions. Could you just expand on that, given how important the global development is to your long-term story?\nCharles R. Morrison -- Chairman, President & CEO\nWell, I think I would call out two specific areas, although we're seeing interest all over the world. Asia certainly is a market that has a great opportunity for us. We've talked about our desire to expand in China long term. That doesn't happen overnight as we all know. So it's going to take us some time. But the other part is Western Europe. We really believe what we've learned already with our market entries in France and the U.K. is that we have a great opportunity to expand this brand. Those are markets that we can offer a premium price with a heavy digital focus. And I think the focus on digital from the expansion through the pandemic is going to be to our benefit long term in a lot of those markets. And then obviously, we announced that we signed a deal in Canada for 100 locations that will start in Toronto, another city that fits the model perfectly.\nSo we're continuing to engage with the leads and hope to -- the biggest challenge if there is an obstacle is just reopening these markets and getting people back. It's not like the U.S. right now. And so there is a lag but once that lag is addressed, I think you'll see we continue to expand quickly.\nBrian Michael Vaccaro -- Raymond James & Associates, Inc. -- VP\nAll right. That's helpful. And then the follow-up, can you just expand a little on how Thighstop is performing since its launch about a month ago perhaps you could ballpark weekly sales run rates or when you expect to begin collecting royalties versus that $100 million threshold? And how will you report Thighstop's results starting in the third quarter? Thank you.\nCharles R. Morrison -- Chairman, President & CEO\n", "Yes. We historically don't provide specific product reporting or mix reporting. That's just been a staple for us for a long time. I think the key to Thighstop is every order is beneficial to our long-term strategy for our supply chain and making sure that we focus on the whole bird. I think as it relates to the revenue, we're very pleased. It's in line with where we expected the product to be in a very narrow focused channel through DoorDash. So we expect to bring this back into the Wingstop brand, make it available through our app, and I think that's going to really continue to drive the revenue for Thighstop. But at this point, we're very pleased with where it stands.\nBrian Michael Vaccaro -- Raymond James & Associates, Inc. -- VP\nThank you.\nOperator\nThe next question will come from Jake Bartlett with Truist Securities. Please go ahead.\nJake Rowland Bartlett -- Truist Securities, Inc. -- VP\nThank you for taking my question. My question was about the company-owned development in New York City. I believe you mentioned that there's 25 trade areas that you've identified. And just to clarify, that would imply 25 openings. Just want to make sure that is the case, including ghost and retail stores? And then also, I know it's -- I know you haven't opened any yet, but -- any idea on what that does to the margins? If that's the kind of addition, certainly, it's going to have a big impact on the company sales and company margins. Given the high margins, it seems like you're going to get at the ghost kitchens. How much should this kind of change just the restaurant level margin profile of the company in the next year or 2?\nCharles R. Morrison -- Chairman, President & CEO\nSo the answer to the first question is yes, those 25 are anticipated to be 25 openings and we'll get them open as fast as we can. And I think as it relates to the margin structure, it certainly has the potential to be accretive and supportive of higher margins for the company-owned operations. We have already 30-plus company-owned restaurants out there, and they're very strong volumes with a lot of leverage through the P&L. So I wouldn't look to a meaningful change in that for some time in terms of the overall margin structure. But yes, they do have " ]

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[ "istics of 5G is so different from any other mobile technology that, in reality, was only consumer-centric.\nWith 5G, we're opening up one completely new field or new segment being enterprises. So, I think we're underestimating the growth potential in 5G rollout. But we have also said that not to be caught in our own it's better to take an external forecast, you will suffer from shortcomings, etc. But as you asked, I think it's fair to say that we are more optimistic near term and even more optimistic long term.\nPeter Nyquist\nThanks, Borje. Thanks, Carl, for those answers. Thanks, Sebastien. And then we'll move to Frank Maao at DNB.\nGood morning, Frank.\nFrank Maao -- DNB Markets -- Analyst\nYes. Good morning. So, my question is really, first, how should we think about the target range that you have provided for Networks? I accept the fact that you are saying that 2022 targets for the group is no longer very relevant due to changes in the business mix. But if you zoom in a Networks for a moment, that there's a pretty large discrepancy between the target range and what you actually have delivered.\nSo, my questions would be then what -- is there any key reasons for any margin erosion year on year in 2022? For instance, raw material inflation, component prices were rising, and so on? Or do you expect that to basically be offset by the efficiencies that you pursue in design, in R&D, and so on? So that's kind of my first question. And then if I may, a quick clarification, actually, if I understood about your statement on the DPA bridge issue corrected. Did you say that there actually has been a DPA breach? Or was that a misunderstanding on my part? Thank you.\nBorje Ekholm -- Chief Executive Officer\nOn the DPA, it's a correspondence from the DOJ that there is a breach, and they can determine that -- that's kind of their determination. When we have something more to talk about here, we will come back. I just literally -- it will be inappropriate to discuss any of the details.\nCarl Mellander -- Chief Financial Officer\n", "OK. And Frank, on the question of the target. I think -- I mean, the real focus here is to move now to this long-term, two- to three-year-out EBITA targets. And so, far, we haven't broken that down as to segments -- some point, we might come back with that.\nBut so far, that is the group target. 2022 targets were, of course, broken down by segments. And if we look historically than at Networks, we have been in this range or even above this range that we provided. And we are not here today to guide specifically on Networks for 2022, but the targets remain.\nThat's what we say. Of course, our entire job is to deliver as good profitability and growth as we possibly can in Networks for this year but also going forward. So, I think that's about as much as we can say about this. But let's shift focus now to this two- to three-year-out EBITA targets, that's really what's going to power our company now.\nPeter Nyquist\nThanks, Frank. We need to move to the next question. So, thank you, Frank. And then we will move to [Inaudible].\nUnknown speaker\nThank you very much, and thank you for taking my question. Two questions if I may. And the first, Carl, on the tax rate, effective at 25%. Can you give any guidance or some kind of ballpark, what could be prudent for 2022 to use given the mix that you expect? And also to Borje, except for the cellular enterprise private networks opportunity, a different -- what we see between 3G, 4G, and 5G is this fixed wireless access, first responder networks, etc.\nCan you comment a little bit on your view on these markets if it can also help to prolong the 5G cycle? Thank you.\nCarl Mellander -- Chief Financial Officer\nOK. Thanks, [Inaudible]. Yes. On the tax rates, I would say the 25% that we have now for 2021, that is a good indication of where we should be with the current mix, geographical mix, and so on, and the profitability levels we have.\nI think it's a fairly good assumption to use going forward as well. As you know, we come from much, much higher levels. And it's really how the company is set " ]

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[ "Although it may have been Jon and Kate Gosselin's unusual family that landed them a reality show, it is their marital problems-- to which much of their audience can likely relate-- that have made them a household name in recent weeks. Jon and Kate Gosselin's marital problems have give their TLC show record-breaking ratings. During the previous four seasons of TLC's Jon & Kate Plus Eight, the couple has bickered, eye-rolled, and jabbed its way through adventures in rearing now 9-year-old twins and now 5-year-old sextuplets. In this past Monday's record-breaking fifth-season premiere (9.8 million viewers), Jon and Kate finally addressed the very topic that has kept them on tabloid covers for weeks: Their marriage is on the rocks. Even without the stress of eight children, rolling cameras, and public scrutiny, all couples encounter tension in their relationships. Below, five trigger points that have tested Jon and Kate in their reality-TV run -- and how to make sure the same stressors don't take a toll on your relationship. Stress trigger No. 1: A growing family Whether you're bringing home one new baby or six, expanding your brood requires adjustment. Sleep deprivation can trigger depression and anxiety, said Dr. Ken Robbins, a clinical professor of psychiatry at the University of Wisconsin. New moms are also at risk for postpartum depression, and both parents will likely feel stretched for time. Health.com: 4 Myths about healthy sex Then there's the issue of intimacy, which will undoubtedly be affected with children in the house. \"Sex lives of people who have children are worse -- there's data to prove it,\" said Dr. Andrew Goldstein, an obstetrician and gynecologist at the Johns Hopkins School of Medicine and the author of Reclaiming Desire. \"But a relationship is not like a job where you just have to accomplish what is necessary; you can't just put it on autopilot.\" Smart solutions: Couples need to work together to find creative ways to support and appreciate each other through this transition. • Adjust sleep schedules so that one partner sleeps while the other is awake with the baby. • When possible, get a friend or relative to occasionally help out at night so mom and dad have some time to cultivate their relationship one-on-one. Especially as kids get older, make sure they understand that mom and dad need time to themselves. ", "• Be aware of the signs of postpartum depression like appetite changes, trouble concentrating, loss of energy, and hopelessness. Health.com: 6 Rules for a healthy postpartum slim-down • Make activities that promote mental health -- such as exercise and social time -- a top priority. Stress trigger No. 2: Career changes Before Jon & Kate Plus Eight, the Gosselins worked like the rest of us-- she as a nurse, he as an IT consultant. But things have changed since their family morphed into reality-show fodder, with Kate parlaying her notoriety into a career that includes two books, television appearances, and publicity tours. \"Kate's career has taken off and I'm a bit lost,\" Jon told People magazine in April. Any couple going through a similar change -- whether one partner loses a job or takes on a new one-- can experience tension in the relationship. Smart solutions: Couples should speak honestly and listen carefully to each other to see if a career change has affected their relationship. • The partner who is earning less money may struggle with a diminished self-esteem and feel extra sensitive, while the other may feel resentful about being the primary breadwinner. But both partners need to respect the other's role and recognize their situation as shared. In the case of Jon and Kate, \"the only reason she can do what she does is because he probably takes care of the kids while she's giving a lecture,\" Goldstein pointed out. • Find family and friends dealing with this same issue. Talking about shared struggles can help couples gain perspective and give them a chance to feel good about using their experience to help others." ]

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[ "Athens, Greece (CNN) -- Protesters and police clashed violently in front of the Greek parliament building Wednesday, as tens of thousands of demonstrators gathered in Athens on the first day of a two-day general strike over austerity measures. At least six protesters and 15 police officers were injured amid the disturbances, police said, and at least 15 people were arrested. Strikers in Greece aim to shut down wide sectors of the country, as lawmakers debate a new round of tough cost-cutting measures. Lawmakers passed the new austerity law in principal in an initial round of voting Wednesday, by 154 votes in favor to 141 against, with five lawmakers absent. Parliament must still vote on each article of the legislation Thursday before it can become law. \"Don't bow your head, it's time for resistance and struggle,\" marchers chanted in the capital earlier as they gathered for the union-backed demonstration. The violence broke out around lunchtime in one corner of the square, beside Parliament House, as a group of protesters dressed mostly in black threw rocks and Molotov cocktails at police. Officers fired tear gas and stun grenades, or \"flash bangs,\" in return, sending noisy detonations echoing round the square. Smoke filled the area by mid-afternoon as a fire burned in front of the finance ministry, forcing many peaceful demonstrators to move away. Police estimated that more than 70,000 people were protesting in Athens, and said they planned to put between 2,500 and 3,000 officers on the streets. Organizers estimated the turnout at 120,000 people. Initially, most of the protesters gathered peacefully in front of Parliament House waving union flags, red flags and banners. \"I'm here for my children and everyone else's children. Those punks in there have destroyed everyone's lives,\" said former railway worker Diamandis Goufas, 62, pointing at parliament. Greeks are angry at yet another round of planned austerity measures as Greece tries to bring down its stratospheric debt. Lawmakers are trying to cut government costs to reassure international backers it is doing enough to earn the bailout funds they have promised to pour into the country, with the latest austerity measures expected to pass Thursday. The new bill would lead to around 30,000 job losses and further cuts to wages and pensions for workers in the public sector. That has left at least some Greeks furious at the countries demanding that Greece bring down its spending. ", "\"We are not lazy; it's the Germans, they want to take our blood,\" said Eleftherios Zarkados. At least one student said Wednesday that Thursday would not mark the end of the battle between politicians and the public. \"We will continue to resist even if the measures pass,\" said Sophia Titou, 21, a law student who works at an oil refinery. Many on the streets say they are angry that the well-off people they believe are benefiting from corruption and tax evasion are not being pursued, while public sector workers pay the price for Greece's woes. European Union leaders are scrambling to minimize the effect of Greece's debt on their common currency, the euro. Over the weekend, finance ministers from the world's largest economies pledged their commitment to take \"all necessary actions\" to stabilize markets. They aim to keep banks well capitalized so they can weather the effects of any defaults by Greece or other indebted countries like Portugal, Spain, Ireland or Italy. But there appears to be a split between France and Germany -- Europe's two largest economies -- on how to do it. Germany has stressed that individual European states should inject capital into domestic banks that lack sufficient buffers. But analysts say France is opposed to this idea because it could jeopardize the nation's top-tier credit rating. European leaders are expected to hear concrete details about how the plan might work at a European Council meeting Sunday. European Union heads of state are widely expected to finalize the plan in early November at a meeting of the Group of 20 world economic powers. CNN's Andrew Carey, Diana Magnay and Ben Rooney contributed to" ]

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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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[ "tis with Barclays.\nBlayne Curtis -- Barclays -- Analyst\nHey, guys. Thanks for taking my question. Maybe two related. We'll see. Just on the wireless side, with the guide to back up, you are back close to kind of peak levels and that's without, I guess, some portion of Huawei. So, I'm just kind of curious if you can comment on some of the strength. And then I know geographic breakdowns of revenue is never a great way to look at SMEs [Phonetics], but Asia was up big. I was wondering if you can comment on that as well.\nVictor Peng -- President and Chief Executive Officer\nYeah. I mean, again, just qualitatively, I think this speaks to the overall strength of 5G, which, again, that isn't -- our thesis hasn't changed there. Obviously, Huawei is important, but it's not like we had no impact. But just speaking to the strength of the 5G deployment is really happening. Korea started last year, but that's not -- and so that's over. And I think, remind everybody that Huawei is a key customer as is ZTE. And we continue to ship to ZTE and as well as all the other ones, right. We ship to all the big players in wireless. So, I think that's really what you're seeing and --\nLorenzo Flores -- Executive Vice President and Chief Financial Officer.\nNo, I think that aligns with the Asia growth story as the primary driver. And we did see maybe significantly less important in overall impact. We did see some strength in the industrial end-market in Asia as well.\nBlayne Curtis -- Barclays -- Analyst\nThanks, guys.\nOperator\nYour next question comes from the line of John Pitzer with Credit Suisse.\nJohn Pitzer -- Credit Suisse -- Analyst\nYeah. Good afternoon, guys. Thanks for letting me ask the question. Victor, just relative to the September guide for wireless to be up slightly, I understand the headwind coming from Huawei. I'm just kind of curious if that up factors in baseband ASIC displacement with radio growth, or is the ASIC displacement more something we see as a headwind in the second half of the fiscal year. And as that becomes a bigger headwind, how do you -- how should we think about your ability to grow the business sequentially?\nVictor Peng -- President and Chief Executive Officer\n", "Yeah. I mean, as far as the ASIC displacement, as I said in my opening remarks, just to lean into that a little bit more, is that's factored in. It was factored in when we shared what we thought we would do at the Analyst and Investor Day. So, we are planning on the facts that we will see some displacement.\nI would say that it's not that we've seen that to date, but we are still -- no change in terms of when we think that's going to happen. Let's put it that way. And so that also means that as Lorenzo said, we still do feel that the second half will be stronger than the first half, but we will give you the detail after the close of this quarter. That -- again that factors in any ASIC displacement.\nJohn Pitzer -- Credit Suisse -- Analyst\nThank you.\nVictor Peng -- President and Chief Executive Officer\nWelcome.\nOperator\nYour next question comes from the line of Ross Seymore with Deutsche Bank.\nRoss Seymore -- Deutsche Bank. -- Analyst\nHi, guys. Thanks for letting me ask a question. I wanted to go to the AIT segment. You gave a little bit of color why that was better than expected. But I wanted to see -- two parts on that. Was there an inventory dynamic there where there were some inventory build that was benefiting that in the June quarter. In the September quarter guide, it seems like if I put all the moving parts in right, that it has to fall off pretty substantially on a sequential basis. So, I just want to see if there is a little more color about what's happening in the September guide for that segment?\nLorenzo Flores -- Executive Vice President and Chief Financial Officer.\nSo, let me start with, Ross, the smaller piece of the history. There was some inventory build in the strength in industrial in Q1, low double -- very low double-digit millions, if you will. In the Q2 guide, even as we went into this fiscal year and incorporated in, what we said at Analyst D" ]

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[ "mless back office functionality critical for brokers who want to provide a global offering in order to capture clients worldwide who seek to invest and want to be able to access many markets in order to do so.\nWe continue to be excited about 2021 and beyond. I know you were all going to ask me about a Bitcoin introduction and we expected by the end of next month. In other areas, we've provided content to Coursera, creating a certificate program for them called A Practical Guide to Trading, which covers equities, forex, US bond and derivatives trading. You should also take a look at IBKR Campus, which offers over 50 courses on investment products, trading tools and portfolio and risk analysis. We want informed clients who will have the knowledge and tools to be with us for the long run.\nAnd finally, we look forward to the Robinhood IPO so that our various metrics can be compared to another firm besides Charles Schwab.\nWith that, I will turn the call over to our CFO, Paul Brody, who will go through the numbers for the quarter. Paul?\nPaul J. Brody -- Chief Financial Officer, Treasurer, Secretary and Director\nThank you, Nancy. Thanks, everyone, for joining the call. As usual, we'll review the quarterly operating results, the non-core items, factors that drove those numbers and then we will open it up for questions.\nStarting with the operating data. Progressively stronger trading levels and record margin borrowing throughout the quarter drove robust operating metrics albeit below the unusual spike in the first quarter with the tailwind of rising world markets on positive vaccination and economic news and low interest rate.\nContinued global interest in financial markets amid the search for higher yield led to industry trading volumes that are still above the activity levels in 2020 in most products. Mean stock trading volume came down from the extreme highs of the first quarter which impacted industry volume mainly in stock. So, over the course of the second quarter, trading by our active trader customer base rose from April lows.\nVolatility, as measured by the average VIX, fell from the unusually high levels that reached early last year at the beginning of the first phase of the coronavirus pandemic, a time of great uncertainty amid rising case numbers worldwide. The average VIX fell from 35% in the second quarter last year to 18% this quarter. And while it has come down recently, the VIX is still stronger than pre-pandemic levels, reflecting perhaps the unevenness of the reopening of economies worldwide.\n", "Merit to the second quarter of 2020, our quarterly total DARTs rose 32% to $2.3 million, second only to the unusually active first quarter. Our customer trade volumes rose year-on-year in several product classes, led by increases of 34% and 160% in options and stock volumes respectively. Stock volume was inflated by trading in low priced stocks, though even after removing those from our calculation, our share volume still rose 36%. Again, these volumes are second only to those of the first quarter.\nFutures volume declined 19% year-on-year, but remained modestly higher than the pre-pandemic level. FX dollar volumes this quarter were lower, a trend we have seen since the explosion of volume in early 2020 and now are about even with pre-pandemic levels.\nTotal accounts reached a record 1,414,000, up 61% over the prior year, contributing to customer equity, growing 79% from the second quarter of 2020 to $363.5 billion.\nOur overall average commission per cleared commissionable order declined 15% versus last year to $2.38, so it rose 3% versus first quarter. Factors impacting this decline include a product mix that featured smaller average trade size as an options forex and our continued success in capturing liquidity rebate, some or all of which are passed through to our clients. Capturing these rebates reduces the overall commission our clients pay, decreasing the average commission per DART, but also reduces the exchange fees we pay on the expense side, making their net impact neutral to our bottom line.\nMoving to our net intere" ]

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[ " networks are operated, and most importantly, what our customers are asking networks to do. Next page. At Colony, our perspective is that networks of tomorrow are converged networks. And this is really our vision for 5G. We believe our value-add and differentiation is delivering for customers, next generation mobile and internet connectivity solutions.\nAs we think about historically, how the sector has ultimately presented itself and most importantly, you as an institutional investor have invested is in traditional silos, and by the way, very successful companies. Traditional macro sites with American Tower and Crown, Data Centers with Digital Realty and Equinix, Small Cells with Crown Castle, Fiber Optic Cabling with CenturyLink, and previously, Zayo is a publicly traded company. But the key there is each of those businesses were in their silos, building out 3G and 4G coverage, and densification. We believe that networks are changing. And we believe that you can no longer be specifically siloed in just one of those verticals. We believe our customers today require significant amount of Capex spend across all of these verticals, to deliver the customer experience that most of all you the consumer want. We're building our business around these next generation networks. It's a differentiated vision. It's not the vision of the past, but based on our 25 years of experience, working with customers, building infrastructure, and being at the forefront of mobile and network connectivity.\nWe believe Colony Capital is the right place to be for digital infrastructure investors. Next Page please. Look, that's my quick tour of the digital landscape today. And we'll be having this dialogue in the coming quarters as I continue to share my views around network topology, our customers, and where digital infrastructure is going. Next, I want to talk a little bit about Colony today. And most importantly, talk about the tangible results that you're seeing in our business transformation. As you get to know me, you'll realize execution and delivery are two of my favorite words. We are focused on delivering for our customers, and most importantly for your shareholders. It's been a busy quarter and I want to walk you through some of our accomplishments. Next page, please on page 12. Simply put, as I've talked to some of our investors over the last couple of quarters, promises made promises kept. Let me walk you through some of our accomplishments.\n", "First and foremost, as I told most of you, when I first came to the company last December in the fourth quarter, my highest priority was going to be putting our liquidity to bed. And we did that. We amended our revolver, we priced a brand new convert offering, and we've dealt with our corporate liabilities. Second, I told you that we would deploy capital into high quality digital infrastructure. And we've done that. We've closed seven transactions in the first half of this year, deploying $20 billion of capital, and recently announced a deal with Wafra that gives us more firepower to continue to bring digital assets onto our balance sheet. Third, we talked about our sharp focus on cost cuts in the fourth quarter last year. We remain committed to that. We delivered $35 million in cost cuts last year. We signed up for another $40 million this year. And we've achieved $38 million in cost cuts through the first half of this year. To be clear, we will beat our targets for 2020.\nFourth, building a best-in-class management team is mission number one. We've continued to add to the growth segments of our businesses, most notably on the digital credit side, and we're very excited about the opportunities that exists in that space, and other tangential digital investment spaces. Finally, number five, super important. We're continuing to grow our digital line business rapidly. We committed a 15% annual growth and we're already at 22% year to-date. And we're not stopping there. My expectation is will be over 30% growth by the end of the year. This is a target that I want and expect and continue to be. Next page ple" ]

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[ "s about how sustainable that might be until volume ramps in 2020? Thank you.\nSteve Mollenkopf -- Chief Executive Officer\nWhy don't I start with the general one and Cristiano you can dig into the second one. So, if you look at the agencies and we've done a couple of things here over the last several years. First of all, we really tried to focus the company on things that we can see that heavily leverage the technology roadmap that we have for mobile.\nWe're doing that upstream of 5G primarily because we think that technology roadmap is the relevant roadmap in these adjacent industries. So, a great example of that is cars. So, in the car -- the connected car the opportunity for us to sell modems and now computing capability in the head units and then ultimately, some of the broader communicate -- computing in the car increases and we've seen that address well here over the last several years. That's a good business. Longer timelines, harder to get into, harder -- but stickier, I guess, which is good. I think that's going well.\nIndustrial IoT which is a business that I think leverages the -- this digital transformation aspect I mentioned in my remarks is going well. Consumer IoT I think has yet to really embrace some of the opportunities that are coming. We still think that's going to be an interesting opportunity, but the industrial side is probably a little better for us.\nWe are continuing to invest in the go-to-market aspects. We have a pretty strong technology road map. It's our ability. How do we match into those differentiate shape, markets versus what we see in cellular, but a very strong roadmap to go into there.\nYou mentioned the RF side. We think there's significant opportunity particularly with the advent or the growth of 5G and the importance of the RF there to grow content within the device. And when we see opportunities to do that, we're doing that. So, you see that in RF, Cristiano will comment about that.\nI also don't want you to miss some of the opportunities like fingerprint that we've been able to invest into. And those are interesting opportunities. So, we see 5G as an opportunity to allow us to really leverage some of the R&D scale that we have in mobile. And we see that we're going to take advantage of it and try to stay focused along the same way.\nCristiano Amon -- President\n", "So, I was just going to add a few things. First, when you look at it as you mentioned the adjacent for us non-Apple when you exclude Apple even with some of the economic weakness, we're seeing -- we're still growing both Q2 and Q3 when we look at year-over-year as still double-digit growth. Some of those bets, very small but the trends are -- they are very good.\nI think I want to highlight a few that Steve mentioned on industrial. The alignment on our industrial bet with the 5G and the effect of 5G is going to go to many other industries beyond mobile. It's going to be a major tailwind to get a scale on industrial IoT. We see the same thing with the Cellular-V2X and it was going to be added to our existing digital cockpit in telematics business.\nOne data point that we didn't mention, we still haven't bet on computing. And you should expect to see in the second half calendar, our 8cx which is our first a Snapdragon dedicated for PCs with Microsoft. And that will be the first opportunity that we can start to see that investor materializing.\nNow going back to the front end, I believe that our position in 5G is differentiated. What's happening with 5G, the speed of the roadmap especially as you think of a number of antennas and carrier aggregation is moving faster than we saw with 4G. And the ability to design as a system and claim some of the real estate that you had on devices for the front end is giving us an advantage.\nWe're the only company now that actually has everything from digital to the antenna in house and that give us an ability to build on our strength of being a system versus just a component provider. And that materialize in the fact that every single 5G design now you'll find our front end and we expect that to continu" ]

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[ " we're calling TR3, the Tech Refresh 3. So we're going through a transition from developed into production. We think, longer term, there's numerous opportunities for additional content that we could provide, but notwithstanding that is the aircraft's ramp-up. We get more content per plane and even the potential for sustainment. We see this as a long-term growth driver for years to come, not to mention the international opportunities on top of that.\nOperator\nThank you. Our next question is from the line of Jon Raviv with Citi Group. Please proceed with your question.\nJon Raviv -- Citi Group -- Analyst\nThanks and good morning. Sort of given the divestitures and also the pandemic impact on commercial and 2020 is a bit of an easy comp into 2021, and then with commercial in 1Q still being light, 2021 is still kind of setting a relatively easy comp as well. So can you talk about just the opportunities, too, for growth rates to actually potentially accelerate beyond 2021, even slightly as you get over the commercial aero comp, these new space activities ramp-up, the revenue synergies pick up? And then also within that portfolio, what might be sort of heading in the wrong direction versus what's heading in the right direction to sort of maintain at least mid-single-digit growth?\nWilliam M. Brown -- Chairman and Chief Executive Officer\nSo Jon, I think that's a good question. I think you laid out kind of the response and the question, if you will. So you laid out some of the drivers next year. Yes, we do see -- as I made that in my remarks, DoD and U.S. government, low single-digits. We see revenue synergies about one point. We see international mid single-digit plus, some headwinds coming from commercial. But you're exactly right. As you start to get out into 2022 from 2021, we'll see less of and maybe no commercial headwinds and maybe eventually starts to turn into a tailwind. We see international at the front end of a build.\n", "Again, we're very underpenetrated. We have 20% of our revenues in international. I think Chris laid out a growth target there. We did -- we performed very well in the back half of last year. It was up low to mid single-digits. We had a very good Q3. And we've got some good momentum coming into this year. A very big pipeline of our $67 billion total company pipeline, $16 billion of which is in international. So we've got a lot of opportunities we're chasing on the international front. And again, we've talked about the revenue synergies, about one point, call it, $150 million to $200 million net incremental in 2021 from 2020, we're still at the front end of the build. So we have 40 proposals that have been awarded. We won two-thirds of them, but there's 70 that are submitted. So another 30 to be awarded or not. There's more that are happening in the future.\nSo we hope to continue to build on that, and we do hope -- just given the positioning of ourselves within the DoD budget, that low to single-digit growth from DoD could actually grow over time because we're in great places that are going to continue to get funded. But we're also growing as a mission solutions provider going after a larger addressable market. So put all those pieces together, yes, that should -- that could drive acceleration beyond 2021. But right now, we're laying out the 2021 framework, and we ought to be thinking about mid-single digits beyond that.\nOperator\nOur next question comes from the line of Seth Seifman with JPMorgan. Please proceed with your question.\nSeth Seifman -- JPMorgan -- Analyst\nOkay. Thanks very much, and good morning everyone.\nWilliam M. Brown -- Chairman and Chief Executive Officer\nGood morning, Seth.\nSeth Seifman -- JPMorgan -- Analyst\nI think, Bill, you talked in the past about getting DoD tactical to sort of $1 billion -- over $1 billion of sales in the early 2020 time frame and kind of got right up to that $1 billion level in 2020. And so, I guess, is there anything more specific you can say to kind of outline the outlook there over the next couple of years?\nWilliam M. Brown -- Chairman and Chief Executive Officer" ]

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[ "e crisis of the last weeks. And, there will be an acceleration of their transformation over the next quarters. The level of adoption of cloud in the different markets is going to accelerate tremendously, and without -- not even talking about the potential of 5G for a lot of the technologies that we are talking about.\nSo, I think, I would say that the winners in the industry would be the one who have been able to adapt and shift the fastest to the evolution of this demand and be able to come on one side and work with the clients, the partners to drive efficiencies, simplify organizations, reduce the cost of running operations and so on. And on the other side, reinvest at least part of these savings to new technology and new ways of working, helping creation of new revenue streams, through innovation, and technology.\nSo it's going to be about being able to adjust, being able to accelerate and stick as close as possible to our customers and hear and get a deep understanding of the challenges of each industry and be able to respond to it. Services need to be sector specific to address those needs -- those requirements from our clients.\nDivya Nagarajan -- UBS -- Analyst\nThanks for that. Jatin, my question to your earlier comment that you have brought down your temporary workforce and replaced it with some of the slack that you had in the system because of this downturn. What would -- how would you kind of look at talent in building up the bench as demand returns? Would it mean that some of the temporary workforce comes back or do you think that you have enough slack in the system still, because utilization, as you said, has gone up a bit? Does that mean that you will have to then increase hiring as demand comes up? How should we think about this equation?\nJatin Dalal -- President and Chief Financial Officer\n", "So, we have, right now, sufficient availability of talent in the company. Having said that, right now, as we always say that we will hire for revenue. So, if there is a need to hire externally, we will definitely look at it. But the action that we took was a very straightforward, I would say, straightforward method of [Indecipherable] action that when we saw the reduction in some of our revenues, some of our own employees became available for work. And if we had a skill set which was available, with which we could service our customers, we did not need the cost of the variable workforce. And therefore, we sort of reduced that variable workforce and put our own employees to service those requirements. And if it goes up, then we have all the channels available for us to utilize it.\nSaurabh, do you want to add anything to that?\nSaurabh Govil -- President and Chief Human Resources Officer\nYeah, just to add, one is that, in the -- some of the geographies in the developed markets we've been able to put some employee on furlough and that's helped in our cost perspective, but our talent's available for us and as and when demand comes, we can quickly get them back without hiring anybody. So, it's a win-win for the employees, for the company of not going and hiring people when the demand comes back or gearing ourselves for that. And the other one is also about crowdsourcing and the Top Gear platform and how you utilize that. That's another advantage. We're seeing a lot of traction on Top Gear. In the quarter, we've seen a large demand on that one. These two would be other drivers in terms of looking at when demand comes back.\nDivya Nagarajan -- UBS -- Analyst\nThank you, and all the best.\nOperator\nThank you very much. Ladies and gentlemen, we will take our last question now which is from the line of Mr. Girish Pai from Nirmal Bang. Please go ahead.\nGirish Pai -- Nirmal Bang -- Analyst\nThanks for the opportunity. Just wanted to discuss the trajectory of recovery. You had your best quarter recently in 3Q of FY '20 of about just a little less than $2.1 billion. By when do you think you will get back to that number, Jatin? That's question number one. Second question is regarding pricing. Do you see that the worst on the pricing front is " ]

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[ "ins in wireless infrastructure.\nSpecifically, in mobile, we accelerated the reach of our Sky5 portfolio, powering the latest launches at leading Tier 1 smartphone OEMs supporting more than 20 platforms. In addition, we shipped Sky5 solutions across Samsung Galaxy's tablet portfolio. In IoT, we continue to gain new customers and expand content. We delivered 5G CPE connectivity solutions to Nokia.\nWe partnered with Swisscom to launch their WiFi 6 GPON residential gateway. We ramped WiFi 6 and 6E platforms at NETGEAR and Cisco. Launched connectivity and home security devices with Amazon, Ring, and Comcast and captured design wins at Garmin supporting mobile fitness applications. In automotive, we supported autonomous driving systems with a market-leading Robotaxi platform and enabled advanced Charge Control Unit systems for a Tier 1 European automotive OEM.\nAcross the infrastructure markets, we provided power isolation solutions to a strategic manufacturer of EV including residential solar and energy storage systems, and we secured multiple design wins in next-generation MIMO and small cell base station installations. Moving ahead, we see a multiyear secular technology evolution with our aperture widening from smartphones to industrial, automotive, and an expansive set of IoT devices. Skyworks is fueling this dramatic technological shift with our unique capabilities, integrating not only 5G, but increasingly with our other critical connectivity protocols, including high-performance Wi-Fi, Bluetooth, and precision GPS. As these opportunities emerge, Skyworks is positioned to win.\nWith the breadth and depth of our customer relationships established over 20 years, our experience across multiple technology transitions, and a dedicated and talented workforce that executed extraordinarily well during fiscal 2021. With that, I will turn the call over to Kris.\nKris Sennesael -- Chief Financial Officer\nThanks, Liam. Skyworks revenue for the fourth fiscal quarter of 2021 was $1.311 billion, up 17% sequentially and up 37% year over year, driven by both mobile solutions and broad markets. Gross profit in the fourth quarter was $668 million, resulting in a gross margin of 51% up 40 basis points sequentially and 60 basis points year over year. Operating expenses were $180 million or 13.8% of revenue, demonstrating leverage in our operating model while continuing our strategic investments in support of future growth.\n", "We generated $488 million of operating income, translating into an operating margin of 37.2%. We incurred $11 million of other expenses, and our effective tax rate was 8%, driving net income of $439 million. So, top-line momentum and execution on margins drove diluted earnings per share of $2.62 ahead of consensus estimates. EPS grew 22% sequentially and increased 42% compared to Q4 of last year.\nTurning to the balance sheet and cash flow. Fourth fiscal quarter cash flow from operations was $398 million. Capital expenditures were $263 million, and we paid $93 million in dividends and repaid $250 million of our term loan. Let's also review our record-breaking full fiscal year performance.\nRevenue grew 52% to $5.1 billion, adding over $1.7 billion in incremental revenue over fiscal 2020. Gross profit was $2.6 billion, resulting in a gross margin of 50.9%. Operating income increased 73% to $2 billion with an all-time record operating margin of 38.2%, up 450 basis points from the prior year. Net income was $1.8 billion, translating into $10.50 of diluted earnings per share, up 71% year over year.\nCash flow from operations was up 47% to $1.8 billion. And during fiscal 2021, we returned $536 million of cash back to the shareholders with $340 million in dividends and $196 million in share buybacks, all during Q1 of fiscal '21. Starting in Q2 of fiscal '21, we temporarily suspended our share repurchase program in connection with the acquisition of the Infrastructure & Automotive business from Silicon Labs. Given the strength of our business and the progress we have made on integrating the acquisition and given the low leverage ratio " ]

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[ "BEIJING, China (CNN) -- Chinese officials in the northwestern Xinjiang Uygur Autonomous Region reported the death of a fourth baby Thursday in the country's expanding contaminated infant formula case. The tainted milk powder has already sickened more than 6,200 babies. Earlier in the day, authorities announced the arrest of 12 more suspects in the investigation, provincial police said. The arrests bring to 18 the number of people detained, according to the Hebei Public Security Bureau. Twelve of those arrested are involved in the collection of milk and the production of milk products, authorities said. Authorities accuse the other six of illegally selling the chemical added to the milk. More than 1,300 infants are hospitalized, said Li Changjiang, China's director of quarantine and inspection, on Wednesday. Their conditions include malnutrition, kidney stones and acute renal failure. Inspectors have been deployed across the country to test producers' inventories. Of China's 175 baby milk powder production companies, 66 have stopped production, Li said. Watch parents scramble for safe milk » Two brothers who sold fresh milk used to produce contaminated baby milk powder were arrested by Chinese investigators Monday. They could face death if convicted, according to China Daily, a state-run newspaper. The raw milk had been watered down and a chemical added to fool quality checks, the newspaper said. Investigators said the brothers confessed to watering down the raw milk and mixing in tripolycyanamide, also known as melamine. They said they did it to recover losses suffered when the factory rejected earlier milk shipments, the paper reported. Learn more about the chemical melamine » The brothers are charged with producing and selling toxic and hazardous food, which carries a possible death penalty, the paper said. Health experts say ingesting melamine can lead to kidney stones, urinary tract ulcers, and eye and skin irritation. The chemical is commonly used in coatings and laminates, wood adhesives, fabric coatings, ceiling tiles and flame retardants. Watch CNN visit the company at the center of the scandal » Thousands of tons of the tainted milk powder have been recalled, including pullbacks by Mengniu Dairy Group, China's largest milk producer, and the Sanlu Group. Chinese investigators have found melamine in nearly 70 milk products from more than 20 companies, Li said Wednesday. Products made by Sanlu had the highest concentration of the chemical. It is not the first time Sanlu has been connected to a scandal involving tainted milk powder, according to China Daily. ", "In 2004, at least 13 infants in the eastern Anhui province died of malnutrition after drinking milk powder that had little to no nutrition. The illegally manufactured milk was falsely labeled with the Sanlu brand, according to the paper. The vast majority of the tainted formula was consumed domestically, but it is known to have been exported to Taiwan, Bangladesh, Myanmar, Yemen, Chad and Burundi, according to Li. The U.S. Food and Drug Administration said no Chinese baby formula has been allowed on the market in the United States. In a statement on its Web site, the FDA said it had reached out to all five companies making formula in the United States and none has used formula or source materials from China. This episode marks the latest in a string of tainted products produced in China: CNN's Yuli Yang contributed to this story." ]

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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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[ ". We continue to lead the industry in both areas of technical development and mass production volumes. Currently, over 16 gigawatts of N-type TOPCon cell capacity in Hefei and the hedging that ramping up smoothly with mass produced cell conversion efficiency exceeding 24.6%. We are consistently investing in technology for new cell structure upgrades and new metallization methods to increase efficiency and reduce costs.\nRecently, we set a new world record for our N-type TOPCon cell with maximum conversion efficiency, reaching 25.7%. At the same time, we are also performing iterations on the N-type cell technology platform to optimize and apply the latest technologies for mass production and achieve technical leadership among other peers.\nLi Xiande -- Chief Executive Officer, JinkoSolar Holding Company Limited\n[Foreign language]\nStella Wang -- Investor Relations\nAs the prominence and benefits of the N-type module growth, we have been seeing wider acceptance and increasing demand from global customers for other N-type products. We are confident about ramping up to full capacity and increase the sales for the Tiger Neo modules, giving us the advantage of growing our classic shares and increase in profit. In addition, we are optimistic on China's demand and are expanding our resources and local deployment to grow in the domestic market for our DG business in China. At present, all our efforts on building different channels are already seeing results.\nIn future, we will further coordinate our market strategy, pricing systems, and brand development. We believe this will give us technical advantages in the distributed generation sector and bring low-carbon, reliable, and highly economical products and solutions to our customers.\nLi Xiande -- Chief Executive Officer, JinkoSolar Holding Company Limited\n[Foreign Language]\nStella Wang -- Investor Relations\nWe have successfully ramped up the 16 gigawatts of N-type cell's production capacity. Taking into account our advantages in N-type cells and strong market demand, we plan to invest in the second phase of N-type cells with a total production capacity of approximately 16 gigawatts. The increase in N-type cell production capacity will further optimize our production infrastructure and to reduce integration costs. As a result, we are increasing our full year guidance.\nAt this time, we are expecting the annual -- we are expecting the annual production capacity of mono wafer, solar cells, and modules to reach 55 gigawatts -- 55 gigawatts and 60 gigawatts, respectively, by the end of 2022.\n", "Li Xiande -- Chief Executive Officer, JinkoSolar Holding Company Limited\n[Foreign Language]\nStella Wang -- Investor Relations\nBefore turning over to Gener, I would like to go over our guidance for the second quarter of 2022. We expect the total shipments to be in the range of 8.5 to 9.5 gigawatts for the second quarter of 2022.\nGener Miao -- Chief Marketing Officer, JinkoSolar Holding Company Limited\nThank you, Ms. Li. Module shipments in the fourth quarter were approximately eight gigawatt and less than 400 megawatt of wafers and cells are sold in China additionally. By the first quarter, our accumulated global module shipment has surpassed 100 gigawatts, and thus, becoming the first company in the industry to achieve this historic milestone.\nRegarding regional landscape, Europe, Asia Pacific, and emerging markets were the regions with the most of shipments. In terms of absolute numbers, our shipments to Europe increased by more than 30% quarter over quarter, and our shipments in China nearly tripled year over year. In Europe, the Russia Ukraine war boosted solar demand, and it is expected to grow steadily in the future. The high demand of distributed generation combined with successful for large-scale projects continue to demonstrate strong growth momentum in the Chinese market.\nAlthough deliveries for some domestic projects, has been delayed due to logistic restrictions caused by the resurgence of COVID-19 and the supply chain disruptions, we are still bullish on China's market demand and are moving" ]

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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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[ " I think like everybody else, we'd also put out the caveat that we are closely watching the geopolitical situation. And impact of tariffs, which have been so far modest in our exposure, but we keep an eye on that for the long term and any changes. So we're cautiously optimistic as we look forward in China.\nBrandon Couillard -- Jefferies -- Analyst\nOkay. And then maybe one follow-up for Annette. We'd love to get an update on the cell analysis portfolio, and specifically any interest you're seeing in the ZE5 cell imager? Thanks.\nAnnette Tumolo -- Executive Vice President, President, Life Science Group\nWell, you know, I think we're seeing good demand in our flow analysis products. And with respect to the ZE5, we see a lot of traction in pharma and biopharma due to the particular feature set and value proposition, it offers to those customers.\nBrandon Couillard -- Jefferies -- Analyst\nAll right. Maybe one for Norman, just to round out here. Cash continues to build pretty substantially on the balance sheet. The buyback is relatively immaterial in the third quarter. Just give us a sense perhaps why the buyback doesn't seem to be a higher priority, and kind of your current view on the M&A pipeline, and whether or not you might be any closer to finding something attractive out there? Thanks.\nJohn Hertia -- Executive Vice President, President, Clinical Diagnostics Group\nSo Brandon, [Speech Overlap]\nNorman Schwartz -- Chairman of the Board, President and Chief Executive Officer\nYes. It's always...\nJohn Hertia -- Executive Vice President, President, Clinical Diagnostics Group\nGo ahead, Norman.\nNorman Schwartz -- Chairman of the Board, President and Chief Executive Officer\n...yes. I -- yes, I've got that. I think that -- you know, it's always a balance. You got opportunities that you're looking at and -- so you know, you -- it's -- we try to keep the cash for those, but nevertheless we did get in the market and did buyback some shares during the quarter. So again it's a balance between saving it for the right acquisition and the buyback. So we're trying to manage it the best we can.\nBrandon Couillard -- Jefferies -- Analyst\nAll right. Thank you.\nJohn Hertia -- Executive Vice President, President, Clinical Diagnostics Group\nThank you.\nOperator\n", "We have a follow-up question from the line of Jack Meehan with Barclays. Your line is now open.\nJack Meehan -- Barclays -- Analyst\nThanks. Maybe just to start on the process-driven [Phonetic] business. I know that was up modestly year-over-year. I think previously, you're assuming some modest level of growth, back half over back half is that still the implied assumption for the fourth quarter?\nIlan Daskal -- Executive Vice President and Chief Financial Officer\nSo Jack, thanks for the question. The answer -- the short answer is, yes. I mean we still project the incremental growth to be this year. So obviously, most of the growth we projected in Q4.\nJack Meehan -- Barclays -- Analyst\nOkay. And then the gross margin of 56% was really strong 250 bps year-over-year. Was there anything to call out in terms of some of the efficiency initiatives or mix of consumable versus instrument, which might help that progression in the quarter?\nIlan Daskal -- Executive Vice President and Chief Financial Officer\nYes. A great question. Thanks, Jack. There is -- obviously, the mix with more consumables in this quarter relative to Q3 of 2018, that was definitely one major component there. And two other items that I would highlight will be the lower inventory reserves and the lower logistics cost. These are two items that we called out last year at the same time. And these are definitely items -- areas that we improved and that contributed to the incremental gross margin this quarter.\nJack Meehan -- Barclays -- Analyst\nGreat. And maybe, Andy, I know you mentioned you're not giving 2020 guidance at this point. But at the last Analyst Day in November 2017, you had the 20% target. Just given the progression you've had the last few years and the trajectory year-to-date, I mean, does that still feel pretty doable?\nAndrew L" ]

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[ "s and targeted investments in the second half.\nWhen we spoke to you all at investor day in early June, we outlined three key areas where we are looking to invest over the next three to five years. Footprint optimization and restructuring to drive a more efficient manufacturing and distribution network, primarily across our electrical solutions segment as we continue our HES journey as a unified operating segment. Second, targeted capacity expansion in markets with visible growth trajectories and strong Hubbell positions, primarily in certain power T&D and communication product lines where capacity is tight and customers have critical needs for our products. And finally, innovation to accelerate organic growth with an emphasis to capitalize on attractive megatrends and key strategic growth verticals through new products, solutions and go-to-market strategies.\nWhile we recognize that the near-term macroeconomic environment is uncertain, we believe that now is an opportune time to accelerate some of these previously planned investments from a position of strength to set the company up for sustained performance over the long term. We expect these initiatives to drive future productivity and cost savings while enabling us to better serve the critical infrastructure needs of our customers with differentiated solutions in front and behind the meter. To summarize this morning's call, Hubbell is off to a strong start through the first half of 2022. We have leading positions in attractive markets with long-term growth drivers and we are executing effectively in the areas within our control.\nWe are confident in delivering on our raised 2022 outlook and in driving differentiated results to our shareholders over the long term. With that, let me turn it over to Q&A.\nQuestions & Answers:\nOperator\n[Operator instructions] And our first question comes from the line of Jeff Sprague from Vertical Research Partners. Your question, please.\nJeff Sprague -- Vertical Research Partners -- Analyst\nHey. Thank you. Good morning, everyone. \nGerben Bakker -- Chairman, President, and Chief Executive Officer\nGood morning, Jeff.\nBill Sperry -- Executive Vice President and Chief Financial Officer\nGood morning, Jeff.\nJeff Sprague -- Vertical Research Partners -- Analyst\nHey. Good morning. So a couple of things from me. Maybe just first on PCX.\nI'd obviously understand the organic growth in that sector, but a little surprised you're buying an integrator, right? So you're basically buying now electrical components from other providers and packaging them, right? So maybe just explain -- unless I'm wrong here, just maybe explain how you kind of advantage that and how that's kind of a sustainable strong business for you?\n", "Bill Sperry -- Executive Vice President and Chief Financial Officer\nYeah, I think it starts with they do manufacture a number of the products that goes in. But you're right, there is an awful lot of sourcing. But the design elements of it, Jeff, that is done in very close concert with the owner operator of the data center is a very sticky process and one that we think really enables the margin to be earned. And so it is a little different in that there is quite a bit of purchase for resale content in the end product.\nBut I think the way -- the nature of the interaction with the customer is quite intimate and design intensive and that's very appealing to us.\nJeff Sprague -- Vertical Research Partners -- Analyst\nOK. And just on price here now, on price cost, I mean, the pricing execution in the quarter is obviously phenomenal. I mean, maybe just address a little bit how these discussions are going now with customers, what you think might happen as we move forward? Obviously, there's a been a pretty significant rollover on kind of steel, copper and -- in most industrial metals. So maybe just a little color on how you expect things to play out in the back half and in next year and if we're seeing any pushback now on pricing?\nGerben Bakker -- Chairman, President, and Chief Executive Officer\nYeah, Jeff, maybe I'll start with some comments and I'm sur" ]

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[ " for EPAM to play in the broad application development and cloud integration services market, which leading analysts are projecting to be resurging in the post-pandemic environment.\nIn comparison -- in combination of custom software development, cloud-native integration work, technology consulting and training services, and which represents a total over $700 billion in 2021 alone or about 60% of the total global IT services market. While thinking about this in context of near-term demand for EPAM and the lagging effect of the pandemic on our customers, we still anticipate some continued disruption in a few of our customers and markets and probably longer-term damage for certain industries. However, today, when 2020 is already in the past and while we are obviously still not being out of post-pandemic time zone and specific geopolitical risks, we do believe that 2021 will be a year of return to 20-plus-percent growth organically. With that, let me hand the call over to Jason to provide more specifics in our 2020 results and our annual business outlook, which we are resuming for fiscal 2021.\nJason Peterson -- Chief Financial Officer\nThank you, Ark and good morning, everyone. We are pleased with our 2020 fiscal year performance, especially given the dynamic environment. Our results demonstrate the durability of our portfolio, adaptability of our people and highlight EPAM's ability to meet the needs of clients even during challenging times. In the fourth quarter, EPAM generated revenue of $723.5 million, a year-over-year increase of 14.3% on a reported basis and 13.7% in constant-currency terms, reflecting a positive foreign exchange impact of approximately 60 basis points.\nRevenue came in higher than previously guided due to our ability to expand our delivery capacity in response to a stronger-than-anticipated demand environment. Revenues also benefited somewhat from the beforementioned foreign exchange contribution. Our industry vertical performance in Q4 produced very strong sequential improvement, driven by a higher level of growth from both new work and existing clients and revenue from new customer relationships established over the last 12 months. Looking at year-over-year performance across this group.\n", "Life Sciences & Healthcare grew 24%. Growth in the quarter was driven by data and analytics, platform development to support new business models and client investments to improve R&D efficiency. Business information and media delivered 16.2% growth in the quarter. Financial services grew 16.1% with growth coming from traditional banking, insurance and, to a lesser degree, wealth management.\nSoftware and hi-tech grew 14.3% in the quarter. Travel and Consumer returned to growth and increased 5.4% yaer over year. In Q4, we saw strong growth from our consumer clients, along with solid and improving performance within retail as clients made investments in response to the dramatic changes in their operating environments. Finally, our emerging vertical delivered 13.1% growth, driven by clients in telecommunications, automotive and materials.\nFrom a geographic perspective, North America, our largest region, representing 59.9% of our Q4 revenues, grew 14% yaer over year or 13.7% in constant currency. Europe, representing 32% of our Q4 revenues, grew 11.8% yaer over year or 7.5% in constant currency. CIS, representing 5.2% of our Q4 revenues, grew 22.9% yaer over year and 45.2% in constant currency. Similar to Q3, growth in the CIS region was driven primarily by clients in financial services and materials.\nAnd finally, APAC grew 39.4% yaer over year or 35.7% in constant-currency terms and now represents 2.9% of our revenues. APAC growth in the quarter was primarily driven by clients in financial services. In the fourth quarter, year-over-year growth in our top 20 clients was 16.6%, and growth outside our top 20 clients was 12.8%. And moving down the income statement.\nAs mentioned last quarter, we continue to run the business with a cost base that is lower than previous levels. While the lower cost base is driven by operational e" ]

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[ " we continue to roll out fiber. We're probably in the year three or four right now. We -- I would say with the majority or vast majority of all the 5G sites, they have our own fiber. We are migrating our 4G sites also, where it's a good return on investment to our own fiber. And over time, we will also open up opportunities for resell to our enterprise customers and wholesale.\nSo, I think that we are seeing that benefit already on the 5G build because we are using our own fiber. To get the full impact, we also have a couple of years left in order to have it in all the areas. But we are coming far away on the fiber build, and we will continue to do it where it makes sense for a return on investment. So, we feel really good about that, and that's part of our Verizon Intelligent Edge Network.\nBrady Connor -- Senior Vice President, Investor Relations\nThanks, Phil. Brad, we're ready for the next question.\nOperator\nThank you. The next question comes from Brett Feldman of Goldman Sachs. Your line is open.\nBrett Feldman -- Goldman Sachs -- Analyst\nThanks for taking the question. I think you called out in the release that COVID ended up being a $0.02 benefit in the quarter. I imagine that was probably a mix of things that were good and bad. I was hoping you maybe could give us a little bit of insight into that.\nAnd then the EPS guidance that you gave for this year, what are you assuming about the COVID impacts over the course of this year, if you could give us any insight on how that breaks out?\nAnd then also one last question on guidance. Does that factor in any potential future spectrum purchases? Or does it just reflect the portfolio spectrum you have today? Thanks.\nHans Vestberg -- Chairman and Chief Executive Officer\nI can start with the latter question, and Matt can come back to the first. So, when it comes to our guidance for EPS in 2021, of course, there are uncertainties of the pandemic and so on. But some things we know. I mean, the roaming charges will continue to be a headwind. We also think that as the pandemic and economic recoveries is coming back, probably latter part of '21, the public sector will not have an equally strong year as they had in 2020.\n", "We also believe that SMB will continue to be subdued and have a challenge in '21. And as we saw during the full year, the switch pool has been lower due to the traffic in the stores, etc. So that's we have factored in.\nBut on the other hand, we have line of sight to what we're doing because we're executing on a strategy when it comes to migration of our customers, what we're doing in Verizon Business Group and also Verizon Media Group. As Matt said, I mean they were now, for the first time ever, have a year-on-year growth with 11%.\nAll in all, that is giving us the confidence that we can live up to this guidance. But there are some uncertainties and there are some headwinds from COVID, but we think that with those assumptions we have, we can actually do this.\nAnd this is continued work with the EPS growth and acceleration that we have talked about for so many years right now, and we continue to show that we can do it with the assets we have and how we're executing. Matt?\nMatthew D. Ellis -- Executive Vice President and Chief Financial Officer\nYes. Thanks, Hans. So, Brett, just in summary on the COVID assumption and the EPS guidance, I think I'd say while certainly some level of pressures will continue to exist on the business throughout the year, I would say it's -- we're not overly pessimistic, but we're not overly optimistic either. We assume some level of pressures. But you saw from the second half of the year, our ability to still execute within that type of environment.\nIn terms of the fourth quarter, as you say, there was actually -- the COVID impact was actually a $0.02 benefit. And what you saw there was there was a couple of one-timers, but primarily it was a case of the revenue pressures we saw declining versus what we've seen in 2Q and 3Q. You think media as an example, which had been significantly hit by COVID impacts earlier in the pandemic, but certainly" ]

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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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[ "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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[ "ng a strong and differentiated technology position is an important asset for our shareholders.\nThis past quarter was a tipping point for 5G when in February at Mobile World Congress, representatives from major Android device manufacturers, network operators, and infrastructure providers joined QUALCOMM in celebrating our collective achievement in bringing 5G to life.\nSince that event, I am pleased to report that the rollout of 5G has officially begun. In the last months, we have seen carriers and OEMs announce and launch commercial 5G services and devices in North America, South Korea, Europe, and most recently, China, representing the first global rollout of a new wireless standard.\nThe arrival of 5G in China is particularly exciting as it brings 5G to the largest mobile user base in the world. To-date, the vast majority of the announced 5G devices for China include QUALCOMM's Snapdragon chipsets.\nSecond, we enter into the 5G era with strength in products, a favorable competitive dynamic, and more customer diversity and technology breadth than in earlier generations of cellular. This is due to QUALCOMM's continued focus on investing in innovation and R&D during a time of much activity and attention on our company.\nWe've transformed QCT by diversifying our customer base, focusing our investments, and streamlining our cost structure. Our year-to-date non-Apple QCT operating income doubled compared to a two year-ago period putting us in a strong position to grow revenues and profits as we began ramping 5G in addition to supplying Apple under this new agreement.\nAs 5G network launches continue to grow, so does our QCT design win pipeline. We now have over 75 5G design wins more than double the number we announced last January, driven by OEM designs with our first and second generation 5G modems.\nIn February, we announced our second generation 5G modem, the Snapdragon X55, our second generation 5G RF front-end solutions, and the world's first mobile platform with integrated 5G, all of which position us to power the second wave of 5G devices launching in late 2019 and early 2020 to drive mainstream adoption of 5G.\n", "Our early investments in 5G now allow us to offer the world's first modem-to-antenna system for commercial 5G new radio smartphone devices, spending millimeter-wave and sub-6 gigahertz bands including baseband, RF transceiver, RF front-end components, and millimeter wave antenna modules. This systems approach is creating a benchmark for 5G RF front-end performance. QUALCOMM is heavily engaged as a critical partner to leaders across many industries as they see 5G mobility as a foundational technology for their digital transformation.\nThird, our cost structure and investment focus are aligned with the opportunities ahead. We will continue to invest where we can leverage our core competencies and bring innovative solutions to large markets. In 5G, this presents opportunities for growth in our core cellular market in addition to many adjacent industries as they leverage 5G to accelerate their digital transformation.\nIn summary, with our agreements with Apple, the beginning of the 5G ramp are focused on operational execution and capital return, we think we've laid the groundwork for growth in revenue and EPS and stockholder returns over the next several years.\nAs a management team, we are committed to driving stockholder value by taking thoughtful and deliberate actions that we believe will ensure the long-term growth of our company as you have seen.\nWe appreciate the positive reaction from investors and analysts through our recent announcement with Apple, especially the feedback from many stockholders over the last two weeks who have recognized and appreciated our commitment to sustaining Qualcomm's long-term differentiation and focus on technology and innovation.\nI would now like to turn the call over to Dave.\nDavid Wise -- Chief Financial Officer\nThank you Steve and good afternoon everyone. We are pleased to announce strong second quarter results with GAAP revenues of $5 billion above the midpoint of our guidance rang" ]

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

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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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[ "nnis Geiger with UBS.\nDennis Geiger -- UBS Securities -- Analyst\nGreat. Thanks for the question. And Todd and GP, thanks for the latest update on the international performance and the growth outlook. Just wondering, if you could talk a bit more about the international development opportunity. I think certainly, a big number announced this week for the U.K. and you highlighted Canada and some of the agreements in Central Asia just now. But just wondering if anything more to add on sort of the discussions with existing international franchisees, how they're thinking about the growth as well as those new partner discussions that you mentioned? I'm curious, if the COVID challenges at all have impacted those discussions or the pace of opens and any other kind of guideposts that we should be looking out for? Thank you.\nGunther Plosch -- Chief Financial Officer\nYeah, Dennis. Good morning. We're making steady progress on our development. As you know, it's one of the three strategic growth pillars. And we talked to you last time, eight weeks ago, since then, we actually signed a new development agreement in Central Asia with about 50 restaurants. So we also enabled a franchise flipping in Quebec, Canada that actually allows us to unlock that part of Canada, which is totally underpenetrated for us. So it creates growth for us.\nAnd we're getting more and more excited about the U.K., right? The U.K. consumer seems to be ready for us. We have built a robust franchise pipeline. We said it in the prepared remarks, about 20 franchisees put up their hands. So like I want to help you Wendy's grow in the U.K. And with that, a chief development officer said in one of the interviews in the U.K. that there is no reason to believe why the long-term potential of the U.K. for us shouldn't be 400 restaurants. Just to be clear, there's no development agreement signed for the U.K. It's a belief that we have and that we'll be going after and that's where we're going to make our investment.\nOperator\nAnd your next question comes from the line of Jeff Farmer with Gordon Haskett.\nJeff Farmer -- Gordon Haskett -- Analyst\nThank you. You briefly touched on it, but what your current staffing levels look like across the system? And what are some of the common themes of those franchisees that have had the most success with staffing in the current environment?\n", "Todd A. Penegor -- President, Chief Executive Officer and Director\nYeah. As I mentioned a little bit earlier, staffing has gotten a little bit tighter out in our restaurants. We are really focused on ensuring that we're creating restaurants that are fun and energizing, leveraging technology to make them simpler to operate to make sure that our employees have a great experience. So in turn, our customers can have a great experience.\nSo the focus is really on retention of the employees we have. We have seen folks paying a little bit more. We have seen folks doing things like paid time off. We're seeing folks do things like free lunches, and we're really trying to make sure that we're taking care of our existing employees. We're leveraging a lot of technology and tools that go out there and recruit even more folks to come into what we believe is a very great culture at Wendy's to work in our restaurants.\nAnd reimaging certainly helps to recruit employees into new restaurants, whether that's a new developed restaurant or reimaged restaurant, it certainly helps along the way. But it will be tight for a little bit for a variety of reasons, and we're managing through that as we look at where we're staffing folks in the restaurant and how we're positioning folks to drive the most throughput with how we're staffed.\nOperator\nAnd your next question comes from the line of Brian Mullan with Deutsche Bank.\nBrian Mullan -- Deutsche Bank -- Analyst\nHey, thank you. Just another question on development. When you think about achieving 3% net unit growth next year, if you could just comment on the U.S. piece of that. Sitting here in May, are franchisees responding how you'd hoped to the incentives? And do you have a good se" ]

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[ "ieve that indium phosphide is one of the two technologies. It's probably the best technology that we'll be counting on for 6G amplifiers.\nSo, this is an effort we have to focus on that. Of course, it's going to happen six, seven years from now, whenever that will take place, but we need to start now. And so, it's a very important investment for us. Again, it goes across multiple markets, multiple applications leveraging our wafer fabs to reach a scale, unique, probably, hopefully, the largest in the world.\nOperator\nNext question is from Richard Shannon from Craig-Hallum. Your line is now open.\nRichard Shannon -- Craig-Hallum Capital Group -- Analyst\nHi, guys. Thanks for taking my questions. I guess mine is on 3D sensing and the VCSEL raise. I think you are talking about some investments here, both in capacity and R&D, and kind of implying a growth track here.\nI think most people see that in longer-term, but I want to get your sense of how soon you're seeing that picking up and in what applications, are you seeing an immediate one to mobile? And to what period, what timing do you see in other applications like automotive as an example.\nGiovanni Barbarossa -- Chief Strategy Officer and the President of the Compound Semiconductor Segment\nHey, Richard, thanks. This is Giovanni. Thanks for your questions. So, I want to make sure that we don't get confused.\nI did talk about incremental opportunity. This is unrelated to VCSEL's. So, I think I want to make sure that it is the case. And we have several applications that we are trying to target across multiple markets again.\nAnd we just need to get ready for the demand to come as I mentioned to Ananda, maybe three quarters from now, we'll see the effect of those investments materializing.\nOperator\nNext question is from Mark Miller from Benchmark Company. You may ask your question.\nMark Miller -- The Benchmark Company -- Analyst\nYou indicated that new products helped boost your margins. And I'm just wondering in terms of the existing backlog, how does that margin profile compare to what you've been posting in recent margins?\nMary Jane Raymond -- Chief Financial Officer\n", "I would say that the backlog is generally positive to margins. I don't take that as 200 basis points. But I would say, as a general matter, especially if you think about most of the supply chain effects being on the ROADM side, it's probably contributory to the positive a little bit on margins. But again, it's not an enormous number, but more skewing in that direction than not.\nOperator\nNext is from Amanda Scarnati from Citi. You may ask your question.\nAmanda Scarnati -- Citi -- Analyst\nGood morning. Can we just talk a little bit about the new silicon carbide deal that was announced yesterday? Can you maybe size what this looks like or give a little bit more detail on the opportunity there and other opportunities that you're starting to see within silicon carbide?\nChuck Mattera -- Chief Executive Officer\nOK. Good morning, Amanda. It's another example of our ability both to market and position ourselves into what we think will be a large and growing supply chain. They've gone through a usual process of evaluating a number of suppliers.\nAnd we understand from the feedback that we received on our 150-millimeter substrates that we're best-in-class. And so, we believe that on the basis of performance and scale that we're putting in place and our absolute determination to serve the market at multiple levels of integration that customers have come to us to be able to generate a long-term and secure supply chain.\nOperator\nNext is from Simon Leopold from Raymond James. You may ask your question.\nSimon Leopold -- Raymond James -- Analyst\nHi. Thanks for taking the question. I want to see if maybe you could drill down a little bit on the datacom trends. I think in the past, you've indicated roughly a 50-50 split between datacom and telecom and the communications, but it sounds like it's moving the other way.\nAnd within this, if you could highlight the exposure to the hyperscalers, that sounds like an interesting trend I'd like t" ]

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[ "Austin, Texas (CNN) -- The current squabbling between the House and the Senate on the payroll tax cut extension perfectly epitomizes why congressional approval is in the single digits. Highlighting this debacle, Newt Gingrich ends his first television ad in Iowa proclaiming that by \"working together, we can and will rebuild the America we love.\" Expecting Newt Gingrich to work together with Democrats and Republicans to end the partisan deadlock in Washington is a bit like asking the fox to guard the chicken coop. When Gingrich entered the House of Representatives in 1979, he quickly became the leader of a group of insurgent conservatives whose chief aim was a Republican Party majority. Gingrich's partisan antics not only transformed the House, but the Senate as well. Washington has not been the same since. Even from his first term, when he tried to get Rep. Charles Diggs kicked out of the House (despite his re-election after being convicted of 29 felonies), it became clear that Gingrich would use every Democratic misstep and every legislative opportunity to portray the House in the worst possible light. It was only in tearing down the House that Gingrich thought that it could be rebuilt in the Republicans' -- or perhaps, his -- own image. To Gingrich's credit, the Democratic leadership was always ready to misstep and then meet him in the partisan mud. Whether it was his fight with Speaker Tip O'Neill about who controlled the television cameras in the House or his relentless pursuit of Speaker Jim Wright's sweetheart book deal, Gingrich would not back down from a fight even if at first it appeared the evidence was against him. Gingrich became a master at using the legislative process to achieve his political goals. This strategy from Gingrich's House days is, of course, well known. What is less well known is that members who previously served with Gingrich in the House spread these highly partisan tactics to the Senate. I am writing a book about these senators, who I call \"Gingrich senators,\" because they so seamlessly infected the Senate with the same hyper-partisanship that pervaded the House. Since Gingrich's first election to the House, 40 Republicans have entered the House and then moved on to the Senate. Twenty-two of them continue to serve in the Senate, including Jim DeMint, John McCain, Jim Inhofe and David Vitter. Their alumni include Rick Santorum, Phil Gramm and George Allen. These senators learned well the lessons that Gingrich taught them in the House. ", "Jon Kyl, the first Gingrich senator to rise to an important party leadership position, had been a supporter of any and all tax cuts until Obama announced his desire to extend the payroll tax reduction. Kyl was among the first Senate Republicans to announce his opposition, not just to how Obama wanted to fund the extension of the tax reduction, but the tax cut extension itself. This, incidentally, is the same Jon Kyl who said in an earlier debate: \"If you want an abortion, you go to Planned Parenthood, and that's well over 90% of what Planned Parenthood does.\" When confronted with the fact that abortions account for only 3% of the organization's work, Kyl's spokesperson claimed that his floor statement \"was not intended to be a factual statement.\" When the Gingrich senators don't have the votes to get their way, they will use all aspects of the legislative process to bring the rest of the chamber to its knees. In the last Congress, the Senate took 419 votes on roll call amendments. The 19 Gingrich senators who were serving at the time introduced more than half of these amendments. Seven of the top 10 senators who introduced the most amendments that resulted in roll call votes were Gingrich senators. Endlessly introducing amendments has become another form of filibustering, which previously involved making speeches rather than introducing amendments. But when a stream of amendments couldn't defeat the health care bill, the Republicans offered up a \"stunt\" amendment, its sole purpose to create a perception that Democrats were voting against preventing sex offenders from buying Viagra in the insurance markets established by the bill. Tom Coburn, a Gingrich senator, introduced" ]

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[ "Relations\nLooking ahead into the fiscal-year 2022, we remain committed to pursuing the following strategies: Firstly, we'll continue to expand and upgrade our store network and [Inaudible] our business model. Secondly, we continue to focus on product and supply chain, as well as introduction of more popular product, before we leverage our strengths in product design and cost control. We also continue to execute our IP strategy and expand our IP library, fully utilize the brand awareness and [Inaudible] top items. Thirdly, we'll continue to deepen consumer engagement and drive the omnichannel experience.\nWe also improved our ability to operate private traffic through mini programs, DTC capabilities, launching products, exclusive online, and improving our recommendation algorithm. Fourthly, we'll continue to closely monitor the pandemic development and adjust our business plans dynamically. By continuing to cooperate with our overseas partners in various aspects will help them to save energy for future development. Finally, we'll continue to leverage our strengths and core capabilities to explore new business opportunities.\nGuofu Ye -- Chairman and Chief Executive Officer\n[Foreign language]\nEason Zhang -- Director of Investor Relations\nThis concludes my prepared remarks. I'll now turn the call to our CFO for financial review.\nSteven Zhang -- Chief Financial Officer\nThank you. I will start my remarks with a review of June quarter financial results and then provide additional color regarding the September quarter. Please note that I will be referring to non-IFRS measures, which have excluded share-based compensation expenses. Revenue was RMB 2.47 billion, increased by 59% year over year and 11% quarter over quarter and above the midpoint of the company's guidance range of RMB 2.3 billion to RMB 2.5 billion.\nThe year-over-year increase was primarily driven by the growth of the company's domestic operations and the recovery of international operations. Revenue generated from the company's domestic operation was RMB 1.95 billion, increased by 43% year over year. Revenue generated from domestic operation of MINISO brand was RMB 1.83 billion, increased by 39% year over year, mainly driven by a year-over-year increase of 14% in average store count and a year-over-year growth of 23% in average revenue per store in China. Revenue generated from company's international operations was RMB 526 million, increased by 179% year over year, reflecting the recovery of company's international operations from the same period of 2020.\n", "From a quarter-over-quarter perspective, revenue from company's domestic operations increased by 9%, driven by a sequential growth of 6% in MINISO's off-line sales in China and a sequential growth of 15% in e-commerce business due to June 18 Mid-Year Shopping Festival. Revenue from international operations increased by 19% sequentially. According to National Bureau of Statistics in China, in the first half of 2021, retail sales of supermarket, convenience store, department store, and a special store increased by an average of 22% compared to the same period of the 2020 and then 7% compared to the same period of 2019. Over the same period, MINISO gross sales increased by 54% and 8%, separately, better than the industrial average.\nAnd it was achieved against the background of the pandemic resurgence in Guangdong province, which lasted for nearly 50 days. During that day, the estimated loss in GMV was about RMB 50 million. Gross profit was RMB 639 million increased by 68% year over year and 2% quarter over quarter. Gross margin was 25.8% as compared to 24.4% a year ago and 28.1% a quarter ago.\nThe year-over-year increase of gross margin was primarily due to an increase in revenue contribution from the company in the international operations, which typically has a higher gross margin than the company's domestic operations. Revenue from international operations account for 21% of the company's total revenue, compared to 12% in the same period in 2020. The quarter-over-quarter decrease was mainly attributed to increased" ]

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[ "the rest of the year, you will see the effect of the recovery from Q2 2020 trough as well as the tempering of those very high growth rates as we move into the second half. In the second quarter, we experienced organic growth of 9% for our electronics chemistry. This is a strong result for a second quarter, in particular when you consider that by Q2 last year China had already begun to recover from the pandemic. Thus, the demand we experienced is primarily driven by secular trends in which we continue to participate, especially 5G and millimeter wave as well as advanced semiconductor packaging.\nSome of these growth drivers were stronger than expected in Q2, and we believe they will support us well into the future. For example, we had previously expected that the work-from-home trends would start to abate in the second quarter of 2021, but the arrival of the Delta variant of COVID-19 meant that work from home-driven computer demand continues to be strong, particularly in Asia. In addition, the never-ending search for more server capacity and greater data volumes continue to drive computer demand and, therefore, our customers' demand for our products. Now as Peter will review later, the record order level for electronics equipment we saw in the first quarter of 2021 translated into very high levels of equipment revenue.\nAnd as always, these equipment sales are supportive of sustainable future chemistry revenues. In quarter 2 last year, our General Metal Finishing segment experienced a deep trough in demand as a result of the pandemic, the rebound from which is clearly visible in the 59% organic revenue growth in chemistry. Although auto production worldwide remains below typical trends due to the well-known semiconductor shortages, our strong presence in China and differentiated offering helped us to grow ahead of the overall market. Our strong revenue growth, coupled with the operating leverage inherent in our business model, provided us with a 63% increase in adjusted EBITDA to a record result of $118 million.\nWe generated adjusted free cash flow from operations of $86 million, returning to a very strong conversion rate from adjusted EBITDA. As a result, we ended the quarter with net leverage of 3.2 times EBITDA, so we are well on track toward our targeted capital structure. In this past quarter, we experienced a surge in demand for our sustainability-related products in both GMF and the Electronics segments. Atotech is uniquely well positioned to meet this demand, given of our decades of focus and investment on sustainable plating solutions.\n", "For example, our Covertron pretreatment process for decorative plating is currently now up and running with two customers and in qualification with a further 15 customers. Our revolutionary patent-pending Fumalock solution is the world's first PFAS-free mist suppressant and, with it, we are in a unique position to help redefine the environmental footprint of the plating industry. I'd like to close with an update on our digitalization activities. The addition of software to our integrated offering is a further differentiator, and I'm very pleased to announce that we have signed our first contract with a high-end industry partner to implement an innovative combination of IIOT solutions and hardware optimization which will enable our customer to reduce overall energy consumption and meet their climate-related goals.\nAlthough today, the percentage of revenues from our sustainability products is relatively small, Atotech is a leader with a broad portfolio of products offering tangible benefits to our customers in terms of reducing the environmental footprint of their activities. Now before I hand the presentation over to Peter, I'd be remiss if I didn't mention the acquisition agreement with MKS Instruments. As of July 1, the board of Atotech reached an agreement to join with MKS for a total equity value of $5.1 billion. MKS is the global leader of -- is a global leader of instruments, systems and process control solutions that measure, monitor, power and control critical parameters of ad" ]

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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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[ "rong performance and realized cost savings achieved over the last three years, this trajectory implies a 1% to 2% annualized cost productivity gain through the five-year forecast period. The planned beneficial infrastructure investment and additional O&M savings enabled us to extend our top-tier 6% to 8% annual growth rate and adjusted earnings per share through 2025. We're able to fund this plan with significant cash flow and modest incremental debt, allowing us to maintain our strong balance sheet and credit metrics with no planned incremental equity through 2025.\nLastly, we showcased our strong ESG profile, including our significant progress in clean energy and changing our generation mix. In 2020, 50% of our energy was emissions free and we achieved a 51% reduction in Evergy's CO2 emissions relative to 2005 levels. We stack up well relative to our Midwest peers in terms of both clean energy delivered to our customers and reduction in carbon emissions. We have ambitious, but achievable goals as we advance toward our target of net zero carbon by 2045.\nSlide seven outlines our resource plan through 2026. To further lower energy cost for customers and reduce emissions, we plan to add more than 1,300 megawatts of new renewables split between over 500 megawatts of solar and 800 megawatts of wind through a series of yearly additions. We also plan to retire coal operations at our plant in Lawrence, Kansas. In September, we initiated a regulatory proceeding in Kansas called predetermination, seeking approval in advance for the Lawrence coal retirement and for the first 190 megawatts of solar generation. We expect to have an order in this proceeding by mid-2022.\nIn October, we also issued a request for proposal for 800 megawatts of wind generation projects we have sequenced across 2024 and 2025 for the benefit of Kansas and Missouri customers. Bids are due later this month, and we plan to select a short list of projects before the end of the year. We are targeting having negotiations completed by mid-2022. In parallel, we will continue to evaluate potential opportunities to buy in and repower existing power purchase agreements as initial production tax credits expire.\n", "Before handing it over to Kirk, I'll wrap up on Slide eight, which summarizes the Evergy value proposition. The left-hand side of the page covers what we're focused on and how we plan to execute our strategy, which I discussed in depth during our Investor Day. The core tenets of our strategy are to advance affordability, reliability and sustainability through a relentless focus on our customers, supported by stakeholder and collaboration, sustainable investment and financial and operational excellence. The right-hand side of Slide eight features what we believe are particularly attractive and distinctive features for our company.\nFirst, we are an all-electric regulated utility with significant benefits delivered since the merger and further opportunities that we will capture through continuous improvement, performance management and sustained consistent execution. Second, we have significant opportunities ahead for the ongoing transition of our generation portfolio. And we can do so cost effectively given that we'll be replacing coal with low-cost renewables, which is a win-win for affordability and sustainability. Third, we are geographically advantaged given our proximity to world-class wind resources in Kansas. We are well positioned to participate in the renewables and transmission build-out that will occur as part of the national transition to a clean energy economy.\nAnd finally, we are targeting a high-performing 6% to 8% annual growth rate and adjusted earnings per share through 2025 at the top rank with our peers. We are very excited about the opportunities for our company, and we are deeply committed to the sustained effort required to deliver against our high performance objectives.\nI will now turn the call over to Kirk.\nKirkland Andrews -- Executive Vice President, Chief Financial Officer\nThanks, David, and good morning, everyone. I'll start with resul" ]

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[ "s grown both before, during, and after COVID.\nAnd we're seeing particular growth in emerging markets such as the ones you highlight but also in developed markets, and we're also seeing that game players are increasingly willing to form long term relationships with games that they particularly enjoy such as the League of Legends or Fortnite or in Honour of Kings, which have very high retention rates and gamers, even if they churn, they come back to and enjoy again. You know, on our side, while historically our focus was was primarily on the China market, as you know, in recent quarters we've had some hits globally that were developed in China including PUBG Mobile, including Call of Duty Mobile, all of which gives us more confidence to step up our rate of investment. And step up our rate of investment means fund bigger, better games, if necessary, for longer periods of time. It also means fund more experimental games.\nIt also means investing more in game marketing and game publishing capabilities. And then finally, it means investing in frontier technologies such as cloud-based gaming that will further grow the game industry in the future. So that's on your game question. With regards to your cloud question, I think that we don't necessarily see a sudden transition in the industry this year versus previous years rather our belief is that when you're in the cloud business, it is inevitable that if you're renting infrastructure to very big companies, then those big companies will use that negotiating power to protect their own economics.\nAnd as a result, the path to long-term economic returns in the cloud is not to get big fast or infrastructure but actually to cultivate a platform as a service and software as a service, and that's something that we've been doing now for several years. Platform as a service, in particular, is a substantial percentage of our total cloud revenues now. You know, that's the simple and the underlying reason why we believe that we're able to outgrow the industry in the first quarter this year.\nMartin Lau -- President\n", "Just one point to add. On the gaming side, I think we emphasize that it's like a new creation of IP users many years before you can see even in private. I think if you look at our recent pipeline of games, which we have announced of more than 40 of them, I think, you know, it's a combination of some of our original APIs, which would take a very long time to develop. For existing APIs that we're going to take existing assets, it's pretty proven gameplay and we will add our innovation for mobile, and then we've developed it for launch.\nAnd then there are also some smaller trial titles, right? The image titles, which would have multiple iterations, probably that there will be developed and released within a short period time and then iterated over time in order to make them bigger. So it's a combination of these different types of titles that constitute a pipeline.\nOperator\nThank you. Our next question comes from William Packer from BNP Paribas. Please go ahead.\nWilliam Packer -- Exane BNP Paribas -- Analyst\nHi, management. Congrats on the strong numbers and thanks for taking my questions. My first question is in your update today, you presented investment plans to exploit the growth opportunities for the future. In Q1 '21, you invested and delivered the 25% net profit drop through on your 25% revenue growth.\nShould we think of Q1 as a relevant benchmark for the rest of the year? And my second question is around regulation. The news flow has continued to be intense. Last quarter, you provided a helpful update on the regulation of fintech and your minority investments. Is there any incremental update to share today? Thank you.\nMartin Lau -- President\nIn terms of the incremental investment plan, I would not say the first quarter is the right benchmark. I think our investment plans actually stepping up from the first-quarter level. So if you look at the first-quarter results, I would say the benchmark is that our non-IFRS profit grew by 22% year on year. And what we're seeing is that we're" ]

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[ "Have you seen those ads being run by the debt-settlement outfits on bad late-night TV? Their promise is always the same -- to reduce your credit card debt to just pennies on the dollar without making you file for bankruptcy! Clark Howard says debt-settlement firms promise to help consumers lower their debts. Are they for real? It turns out that promise is just an illusion. Most debt-settlement outfits require you to pay an upfront fee, plus a monthly retainer. Their strategy is to get you to stop paying on your bills. They typically have you take the money you would have paid toward monthly minimums and stash it in savings. The basic idea is to make the credit card companies so desperate that they'll settle with you. This may end up being the end result, in some cases. However, along the way your credit suffers greatly. In fact, complaints about debt-settlement firms have increased dramatically in North Carolina, Florida and Oregon, according to The New York Times. Watch how Clark helped a caller pay off a massive debt » Many people wonder why these companies even exist. That goes back to 2005, when the bankruptcy laws changed in our nation. At that time, the giant banks that control the credit card portfolios stopped being cooperative with affiliates of the National Foundation for Credit Counseling (NFCC), which helps consumers manage and eliminate their debt. The banks were cynically trying to force people into a position where they had no choice other than to pay up. That environment created an opportunity for the debt-settlement firms to pop up with their false promises that they alone knew how to defeat the banks. The irony here is that the banks have now agreed to work with the NFCC again. There's an initiative known as \"Call to Action\" that is essentially a 60-month payment plan. Its aim is to help consumers who are struggling with credit card debt avoid bankruptcy. Under the Call to Action initiative, the 10 largest credit issuers have agreed to modify the terms and conditions of their repayment policies. That means they may waive late and over-the-limit fees, in addition to reducing interest rates. In industry terms, this kind of arrangement is known as a hardship debt-management plan. The goal here is to increase the chance that you'll pay off your debt instead of bankrupting out of it. But you've got to know that the lenders have not agreed to a reduction of your outstanding balance. ", "Participating credit card issuers include American Express, Bank of America, Capital One, Chase Card Services, Citi, Discover Financial Services, GE Money, HSBC Card Services, U.S. Bank and Wells Fargo Card Services. Keep in mind that not everyone will be eligible to participate in Call to Action. Visit NFCC.org or call 800-388-2227 for more details to see if you qualify." ]

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[ "or the past four years, and we are working toward operating on carbon-free energy around the clock by 2030, a far more ambitious goal that we hope will be transformative for the industry. Five of our data centers in Europe and North America are already operating near or at 90% carbon-free energy around the clock. We are also working toward our commitment to help one billion people make more sustainable choices with our services by 2022. One example of how we are doing this is the new AI-powered feature in Maps that will show the route with the lowest carbon footprint when ETAs are the same. You'll also be able to compare the carbon impact between routes.\nFinally, as we look ahead to the rest of 2021, our four big themes continue to guide us: first, building and providing the most helpful products and services; second, continuing to earn the trust of our users by investing in high-quality information and keeping users' data safe and private; third, strong execution as a company, particularly as we start to reopen our offices; and fourth, building sustainable value in our own business and for our partners.\nAs always, thank you to our Googlers around the world for a great start to the year. To everyone, I look forward to seeing you at IO. Over to Philipp.\nPhilipp Schindler -- Chief Business Officer\nThanks, Sundar, and good afternoon, everyone. It's great to be joining you again today.\nWe're pleased with the strong growth in Google Services revenues in the first quarter. Year-on-year performance reflects elevated consumer online activity, broad-based strength in advertiser spend, and lapping of the initial impact of the pandemic on advertising revenues that began in March last year.\nIn the first quarter in Search, we saw sustained strength across most categories led by retail. We also saw strong performance in tech and CPG. In YouTube, we had phenomenal growth driven by direct response followed by continued strength in brand. We've seen great momentum in TrueView for Action ads, with a number of advertisers using the format doubling over the past year. In Network, exceptional growth was driven by AdMob and Ad Manager with particular strength in app campaigns. Google Other revenues were driven by growth in Google Play and YouTube's non-advertising revenues, followed by hardware.\n", "I would now like to take a few minutes to dive deeper into the trends we're seeing in our business. As Sundar touched on earlier, the pandemic is evolving in different ways across the world. Some countries are in advanced stages of reopening, others are facing reacceleration of cases. And there is everything in between. It's never been more important to help businesses navigate the pandemic as circumstances change.\nOn travel, we're starting to see renewed interest from users as they turn to Google to plan their next trip even before they're ready to book. Every travel partners looking to understand where demand is going and we are helping them to find these opportunities through insights and automation. For American Airlines, for example, that meant using our insight tools to anticipate demand on untapped routes. These newly prioritized routes had significantly higher booking rate in Search this quarter compared to last quarter. Also just last month, we made it free for hotels and travel companies to list their bookings links, similar to what we did with shopping last year. For consumers, it means more choice. For hotels and travel companies, it means free exposure on Google. For advertisers, it means paid campaigns can be augmented with free listings. We are already seeing positive results across the board.\nLet me switch gears now and talk about retail, where we had a very strong quarter. As you know, we've taken important steps over the past year to accelerate an open retail ecosystem. We made product listings free, removed commission fees and opened our shopping platform to Shopify and PayPal. We're also helping retailers with some key opportunities, such as innovating an omnichannel as the line between digital and physical retail continues to blur" ]

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[ "Rhoticity in English is the pronunciation of the historical rhotic consonant /r/ by English speakers. The presence or absence of rhoticity is one of the most prominent distinctions by which varieties of English can be classified. In rhotic varieties, the historical English /r/ sound is preserved in all pronunciation contexts. In non-rhotic varieties, speakers no longer pronounce /r/ in postvocalic environments—that is, when it is immediately after a vowel and not followed by another vowel. For example, in isolation, a rhotic English speaker pronounces the words hard and butter as /ˈhɑːrd/ and /ˈbʌtər/, whereas a non-rhotic speaker \"drops\" or \"deletes\" the /r/ sound, pronouncing them as /ˈhɑːd/ and /ˈbʌtə/. When an r is at the end of a word but the next word begins with a vowel, as in the phrase \"better apples\", most non-rhotic speakers will pronounce the /r/ in that position (the linking R), since it is followed by a vowel in this case.\n\nThe rhotic varieties of English include the dialects of South West England, Scotland, Ireland, and most of the United States and Canada. The non-rhotic varieties include most of the dialects of modern England, Wales, Australia, New Zealand, and South Africa. In some varieties, such as those of some parts of the southern and northeastern United States, rhoticity is a sociolinguistic variable: postvocalic r is deleted depending on an array of social factors, such as being more correlated today with lower socioeconomic status, greater age, certain ethnic identities, and less formal speaking contexts.\n\nEvidence from written documents suggests that loss of postvocalic /r/ began sporadically during the mid-15th century, although these /r/-less spellings were uncommon and were restricted to private documents, especially ones written by women in England. In the mid-18th century, postvocalic /r/ was still pronounced in most environments, but by the 1740s to 1770s it was often deleted entirely, especially after low vowels. By the early 19th century, the southern British standard was fully transformed into a non-rhotic variety, though some variation persisted as late as the 1870s.\n\n", "In the 18th century (and possibly 17th century), the loss of postvocalic /r/ in British English influenced southern and eastern American port cities with close connections to Britain, causing their upper-class pronunciation to become non-rhotic while the rest of the United States remained rhotic. Non-rhotic pronunciation continued to influence American prestige speech until the 1860s, when the American Civil War began to shift America's centers of wealth and political power to rhotic areas with fewer cultural connections to the old colonial and British elites. In the United States, non-rhotic speech continued to hold some level of prestige up until the mid-20th century, but rhotic speech in particular became prestigious nationwide rapidly after the Second World War, reflected in the national standard of radio and television since the mid-20th century embracing historical /r/." ]

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[ "Jennifer Thomas was looking at life with renewed energy: She had just survived a serious operation, and she was at a crossroads in her career. After 20 years as a producer in the stressful business of TV news, the challenge wasn't there for her anymore. For eight weeks, as she recovered from the removal of a large noncancerous tumor from her uterus, Thomas thought about her next steps. \"I told myself I was going to work to do the things that I enjoy, things that are related to the news,\" she said. Thomas had recently conducted news production workshops for kids, so she already knew that she \"loved people and talking to people about the news. That made me start thinking that if I could do it all the time and get paid for it, I'd really enjoy it.\" Within a year, Thomas had left her job at CNN's HLN network to start a Georgia-based media consulting business with clients such as singer/actress Jennifer Holliday, former Bell Biv DeVoe singer Ron DeVoe, actor Boris Kodjoe, actress Nicole Ari Parker and former supermodel Beverly Johnson. During her journey, Thomas learned that working for yourself often requires scary first steps, generous friends and mentors, and maintaining a healthy work-life balance. She's the first to say that her story is not typical in any way, as she seemed to meet good luck at every turn. After her surgery, Thomas, who also had worked at CNN and NBC, began saving money and planning her business. As if on cue, HLN offered her a buyout to leave the company as part of a downsizing. \"It was my light bulb 'a-ha' moment,\" Thomas said. \"I was excited because in the back of my mind, it was what I had been praying for.\" An opportunity to write a blog for a popular local women's magazine got her some local attention. A journalist friend e-mailed Thomas, saying that he had connected with Johnson and suggesting that they meet. \"She called out of the blue,\" Thomas said. \" 'Hi, Jennifer! It's Beverly -- the model!' I was shocked.\" Johnson needed no introduction. Thomas was very familiar with the first African-American model to win a cover on American Vogue magazine. In that year, 1974, Thomas said Johnson's beauty and status spoke volumes to her as a role model. \"When she called, I was like, 'shut up!' We were all like, 'no way!' ", "I didn't think anything would come from it, but eventually, she said she would love to be my client.\" Thomas made short work of helping Johnson successfully pitch her women's health campaign to CNN, NBC and ABC. \"It was huge for me,\" Thomas said. \"It showed me that the skills I may have taken for granted were very valuable to others. Here I was doing what just came natural to me -- working with the media -- and I'm helping an iconic figure. It gave me such a feeling of gratification, and it gave me so much more confidence.\" But snagging Johnson as her first client wasn't easy. She had to start with smaller steps -- and the first step was a doozy: dealing with the fear. \"For me, it was fear of failure,\" she said. \"Anyone who has worked with me knows I am driven to succeed, and failure is not an option.\" \"But I'm a woman of faith,\" said Thomas, a preacher's daughter with strong ties to her church. \"Friends told me that 'faith will give you the wings to fly when you jump off that cliff.' \" One way new consultants can boost their confidence is by compiling a list of experience and skills they've gained during the past five years -- including successful projects, implementations and innovations. Experts recommend referring to that list whenever confidence dips. Thomas said" ]

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[ "Iraq's oil minister Monday opened international bidding on six oil fields that could increase the country's oil production by 1.5 million barrels per day. Iraqi flags flutter during the opening ceremony of a new oil refinery plant in the Shiite holy city of Najaf. But the oil ministry continues to negotiate short-term no-bid contracts with several U.S. and European oil companies, including Exxon Mobil Corp., Royal Dutch Shell, Total SA, Chevron Corp., and BP -- a step recently criticized by two U.S. lawmakers. Oil Minister Hussein Shahrastani announced Monday that 35 international oil companies can bid on long-term contracts for redeveloping the six oil fields, as well as two natural gas fields. \"It is a unique event and a significant feature in the new Iraq that we declare the first bidding course for developing the Iraq oil fields publicly and fully in a transparent way,\" the minister said at Monday's news conference. It marks the first time in more than 35 years that Iraq has allowed foreign oil companies to do business inside its borders. Shahrastani said the fee-based contracts will not give the winning companies a share in the revenue from oil sales \"because this wealth belong to Iraq only and thus we will not allow anyone to share the Iraqis' oil.\" Iraq has among the largest oil reserves in the world, with an estimated 115 billion barrels -- tying Iran for the No. 2 status behind Saudi Arabia's 264 billion barrels, according to estimates from the Energy Information Administration. Iraq's current oil production is 2.25 million barrels a day, according to the U.S. Energy Information Administration. That is close to its status before the U.S.-led war that toppled Saddam Hussein in 2003, but below its levels prior to the first Persian Gulf War in 1991. The six oil fields that will be open to development are in the Kirkuk oil fields and the neighboring Bai Hassan fields in northern Iraq, Shahrastani said. They are al-Rumeila, al-Zubair, al-Qurna West, and three fields in the Maysan oil fields -- Bazirqan, Abu Gharab and Fakah. The two gas fields are Akas and Mansouriya gas fields in western Iraq. The fields have already been explored and are producing oil and gas, but the equipment is old and outdated, Shahrastani said. ", "He hopes that the new infrastructure provided by the international oil companies will mean \"the production can be increased in less cost and less time.\" Iraq's oil minister said the ministry will invite the 35 qualified international companies --- which includes BP, Exxon Mobil, Royal Dutch Shell and Chevron -- to prepare their bids over the next two weeks. The contracts could go into effect by next year, but Shahrastani said it will take several more years before oil production is increased. \"We hope in 2013 through this first bidding course to increase production in these fields by 1.5 million barrels per day, in addition to our daily average production rate during the last five years,\" he said. Meanwhile, Iraq hopes to wrap up its talks regarding short-term, no-bid contracts that would allow the U.S. and European oil companies -- including Exxon Mobil, Royal Dutch Shell, Total SA, Chevron, and BP -- to service those oil fields as soon as possible. Last week, Sen. Charles Schumer, D-New York, and Sen. John Kerry, D-Massachusetts, sent a letter to Secretary of State Condoleezza Rice expressing concerns about the no-bid contracts that the government of Iraq is negotiating with the U.S. and European companies. The senators, who released the letter, said they are worried that unfair distribution of oil revenue could inflame the violence between the warring religious and political groups of Iraq. \"We urge you to persuade the (government of Iraq) to refrain from signing contracts with multinational oil companies until a hydrocarbon law is in effect in Iraq,\" read the letter from Schumer and Kerry. \"At this time, the (government of Iraq) currently does not have in place a revenue-sharing law that could fairly allocate any revenue gained from" ]

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[ "evice, which you can attach to something and then you will find it with your phone. Now, all of that is going to help with Samsung, but of course, also with the other OEMs, drive further and speedy ultrawideband adoption in line with what we did in the Investor Teach-In some time ago. So those two pillars are standing firm, and I'd say, certainly, some of the big OEM customers also have good run rates, John, but I would say, for us, it continues to be a content growth story.\nSecure mobile wallet, secure ultrawideband, and then you know, we also had the eUICC, which is coming in, so there is a number of very specific content drivers which make us actually quite optimistic in mobile on a continued basis beyond the unit rate.\nJohn Pitzer -- Credit Suisse -- Analyst\nAnd, Kurt, do you have enough data yet to think about how your content trends from 4G to 5G? I'm assuming that these new applications are more broadly adopted in 5G firms.\nKurt Sievers -- President and Chief Executive Officer\nYeah. Sorry, I didn't respond to this in the first place. I think actually in principle this is not dependent or required as an association with 4G or 5G, specifically. Clearly, 5G will be about high-end phones in the first place, where the early adoption of these features might be first. But it is not necessarily something which is dependent on 4G or 5G, so which is good actually. So, we are kind of agnostic to that.\nJohn Pitzer -- Credit Suisse -- Analyst\nPerfect. Thank you.\nOperator\nYour next question comes from the line of Ross Seymore with Deutsche Bank.\nRoss Seymore -- Deutsche Bank -- Analyst\nHi, guys. Thanks for letting me ask the question. First, Peter, congratulations on your retirement announcement. I know you're going to be with us for another year or so. But congrats nonetheless.\nPeter Kelly -- Executive Vice President and Chief Financial Officer\nThanks, Ross.\nRoss Seymore -- Deutsche Bank -- Analyst\n", "I guess, as my first question, overall, everybody knows that there are supply shortages, but I hope to get a little more color on it from a somewhat higher level. Could you size in any way, shape or form the impact on what you couldn't ship, and so what you're revenue impact of the supply constraint was in the fourth quarter, the first quarter? Any color about which end market is more acutely hit as you split your business? And then in the timing wise, when do you think you'll be able to catch up?\nPeter Kelly -- Executive Vice President and Chief Financial Officer\nKurt, I think you are on mute.\nKurt Sievers -- President and Chief Executive Officer\nPeter?\nPeter Kelly -- Executive Vice President and Chief Financial Officer\nOh, it's me. Okay. Right. I guess, I'd say a couple of things really, Ross. You can look to really big numbers in the fourth quarter and the first quarter, just if you do some change our math on our months of supply, and -- sort of months of inventory and distribution, but I'm not sure how relevant it is really. So, in theory, we could have shipped hundreds of millions of dollars of more. But then I don't know to what extent you be then pulling that out of Q3 and Q4.\nWe're seeing strength across our businesses. Obviously, there's a lot more reporting in the automotive sector because they are having real supply issues and having to maybe close down factories in certain cases and you talked about people not being able to work for weeks' of time, which is maybe different than you see in some of the smaller customers, who don't have the same megaphone. But even in those areas, they are seeing problems. So, I would say, it's pretty general, and I'll go back to one of Kurt's comments, which was 2019, the supply chain really got empty, demand was very weak. We really forgot about '19 in the context of COVID. And then in the first half of '20, we had absolutely the same issue. So, we're looking at pretty empty supply chains across the board. To some extent, it's exacerbated by maybe people moving into the big Taiwanese foundries outside of China buy the -- the fact that people thought maybe they would not be able to buy pro" ]

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[ ", more applications and a higher burden that's put on the smartphones in 5G.\nAnd that's all good stuff for us. It gives us the opportunity to come in with our solutions all the way from TC-SAW to bulk acoustic wave, assembly and test, packaging in-house in our own fabs. So we're really excited about it. So we do see continuous growth in content, but the content is getting harder.\nIt's not more things. It's more complex things. And so, you need to have an architect that could bring this together and make it easier for our customers to assimilate. That's what we do.\nSo every year, it's not just phone to phone, the phone -- the technology and the complexity within the device is rising. And that, for us, is very, very good, and it limits the competition, and it puts us in a great position to delight the customer. So we look forward to that. And overall, 5G penetration at a high level is still very low right now globally.\nThere's a lot of room to move from here. And there's a lot of upgrades that haven't yet commenced. So we're looking forward to it, but the technology is not stagnant. It continues to get tougher and tougher, higher bar and opportunities for just a few players like Skyworks to execute.\nTristan Gerra -- Robert W. Baird -- Analyst\nGreat. Thank you.\nOperator\nThank you. Our last question comes from Kevin Cassidy of Rosenblatt Securities. Sir, your line is open.\nKevin Cassidy -- Rosenblatt Securities -- Analyst\nThank you. Thanks for taking my question. I just wanted to understand a little more about your order visibility. Are you getting orders that are -- do they have to be scheduled now into the fourth quarter or even going out to the fourth calendar quarter, that would be -- or the first quarter of calendar 2022?\nLiam Griffin -- Chairman, Chief Executive Officer, and President\nYes. Well, I mean, in general terms, the ability to get that demand through has been impeded, right. We discussed through the call today. I would say that Skyworks uniquely, with our own fabs, our own assembly and test and assets, we're a manufacturer, as well as a developer of technology.\n", "So we should be able to do better than peers that are more fabless. But at the same time, we're all dealing with this global chip shortage as we say. And so, that is an impediment to demand. We talked a bit about that, and hopefully, that can be unstuck to some level, but we are working with our customers closely.\nWe're doing a -- our teams are working very hard to resolve any impediments in demand execution. And we certainly think that it will abate over time, but it does play through in the current quarter and into the second half of it.\nKevin Cassidy -- Rosenblatt Securities -- Analyst\nOK. Great. And just to make sure I understand that. So if your customer isn't getting the full bill of material, they're asking to hold up deliveries, they're not building inventory of your product waiting for other products?\nLiam Griffin -- Chairman, Chief Executive Officer, and President\nYes, somewhat that's true. It just depends on how it's going. Sometimes our parts are ready, and we're not holding anybody up, but someone else is holding us up, right? So it's kind of a -- everything has to be complete for an end product to ship. So anything in the food chain that goes sour, it could be an impediment.\nBut I think we'll navigate our part and we do see some -- the cloud is kind of clearing here in the next couple of few quarters and we should benefit from that.\nKevin Cassidy -- Rosenblatt Securities -- Analyst\nOK, great. Thank you.\nOperator\nThank you. Ladies and gentlemen, that concludes today's question-and-answer session. I'll now turn the call back over to Mr. Griffin for any closing comments.\nSir, please go ahead.\nLiam Griffin -- Chairman, Chief Executive Officer, and President\nThanks, everyone, for participating today. We look forward to talking to you at our upcoming conferences in the quarter. Thank you.\nOperator\n[Operator signoff]\nDuration: 57 minutes\nCall participants:\nMitch Haws -- Investor Relations\nLiam Griffin -- Chairman, Chief Executive Officer, and Pre" ]

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[ "is we added to the order book. We're not providing guidance yet.\nBut at the time and point when we're able to with confidence provide more color around things like order book and installs, we absolutely will. It's just still early for us. In terms of the emerging growth segment specifically, we directly haven't heard or seen too many people that at this point are rethinking purchasing decisions or rethinking their investment into their own businesses to advance their science. And I think that it's going to take some time.\nI mean taking a step back, the figure that we quoted on the earnings call just a few moments ago, the number or the amount of capital that's flowing into the space over the last two years, a lot of that's going to need to be put to work. And people are going to need to spend that capital to advance their efforts internally. That being said, I think we're going to have to be adaptable to how customers want to step into a new technology or spend money. And that might be different solutions.\nIt might be reagent rental. It might be a capital lease. It might be just having to walk people through and show them how there's real cost savings holistically with one of our sequencers and their specific use case over the alternative. But the need is still there and these companies are well capitalized.\nThey're going to have to invest in it and a lot of that investment is going to need to be in sequencing to advance their own efforts.\nMatt Sykes -- Goldman Sachs -- Analyst\nGreat. Thank you.\nOperator\nOK. The next question is coming from Michael Ryskin with Bank of America. Your line is live.\nMike Ryskin -- Bank of America Merrill Lynch -- Analyst\nGreat, excellent. Thanks for taking my questions, guys. Following up on the previous question, I want to start with the evaluation process for some of these customers. There's been some preliminary data published.\nYou've got your own data sets out there comparing the G4 with some comparator systems. But I want to go through the process that your customers and your potential customers are going through when they're making that purchasing decisions. Can you just walk us through the process? What data points are they looking at? Sort of how long is that validation process go? And sort of just if you could give us some case studies of that. Thanks.\nDrew Spaventa -- Founder and Chief Executive Officer\n", "Yes. So it really does vary by customer type. If you're talking about kind of academic labs, it's going to be a longer sales cycle in general. And there's probably going to be more back and forth over a longer period of time to really make sure that you have buy-in.\nAcademic cores typically have budgeting cycles, and you really want to start conversations early and get ahead and know who has budget for a new system and really have a more tailored approach to engaging and bringing them forward. And for the academic cores, cost is really a big part of it. So you have to understand the nuances of their applications. You have to walk them through how they would use the applications on your system.\nYou're going to have to provide data, whether it's publicly available or other data that's not publicly available yet, that we would engage with the customer and really get them confident that the system can perform. And once they're confident the system can perform, they're going to have to see a cost savings relative to alternatives typically. Now there's some academic cores that have specific value propositions, where the speed and the flexibility specifically makes it a very different dynamic for them to purchase. And again, those are where we want to, for a large part, focus our efforts, places where our competitive advantage really highlights the need to adopt our system versus others.\nAs we're thinking about other customers, whether they're emerging growth customers or commercial labs, typically with a private entity, it's a quicker buying decision, but there's still that hurdle where you need to get them comfortable the sequencer is going to meet their needs. So we offered and will con" ]

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[ "orld. Customers are using our technology to build secure wireless devices that improve lives, transform industries and grow economies. Working together, we are measurably solving tough global challenges in energy, health infrastructure production and more. These results personally inspired me. I'm an engineer at heart, I find nothing more satisfying than working with others to find innovative solutions to tough problems. And that's exactly what we've been doing at Silicon Labs for nearly 25 years.\nAs pioneers of wireless innovation, we've simplified the complexity of implementing wireless technology from silicon to cloud, so developers can bring the power of secure intelligent connectivity to the world. With the major divestiture of our I&A business complete, the vision, strategy and roadmap for the IoT set in our current outstanding financial results reported, I decided and got Board approval to officially announced my retirement from Silicon Labs effective January 1, 2022. Silicon Labs President Matt Johnson, who has been managing the IoT business since 2018 will become our next Chief Executive Officer at that time. Matt and I have worked closely together to set our company's purpose and promise, create the strategy for a leading wireless platform and product portfolio. And most importantly, reinforce our belief that people belong at the center of everything we do.\nI'm confident Matt will continue to demonstrate our values the foremost of which is do the right thing for all stakeholders. Under Matt's leadership, Silicon Labs will continue its proven track record of sustainable growth, meet its commitments and conduct the business with integrity. For the remainder of the year I will work to facilitate a smooth transition, both internally and externally. After my services complete, I will continue to support Silicon Labs as a member of the Technical Advisory Board. Matt will be joining us on the Q&A and also for the Q3 earnings call.\nBefore we take questions, I'd like to give Matt a chance to say a few words. Matt?\nMatt Johnson -- President\nThank you, Tyson. I'm incredibly excited to lead Silicon Labs as we embark on taking the company to the next level. We have great talent and technology, all now focused on the IoT wireless space that is rapidly growing. Our position to accelerate our impact has never been greater. I'm looking forward to sharing more with you on our Q3 update.\nI will now turn the call back over to Austin.\nAustin Dean -- Manager of Investor Relations\n", "Thank you, Matt. Thank you for joining Silicon Labs Q2 2021 financial and business update. I recognize, we've covered a lot of information. So, I will now open the call for questions. To accommodate as many people as possible before the market opens, I ask you to limit your time to one question with one follow-up inquiry if needed. Operator?\nQuestions and Answers:\nOperator\nThank you. We will now begin the question-and-answer session. [Operator Instructions] Our first question comes from Gary Mobley from Wells Fargo Securities. Please go ahead.\nGary Mobley -- Wells Fargo Securities -- Analyst\nGood morning, everybody. Matt, Tyson, let me extend my congratulations on both of your milestones. Wanted to start out by asking about your plans for the net proceeds. Specifically, I think the $2 billion, you had originally outlined for either a one-time dividend, share buyback or other uses some hoping to get your current view on the options and as well you mentioned and this is linked to the use of cash. You mentioned that you're looking at different options to expand capacity might you use some of that cash for things like pre-purchase of wafers to secure that?\nTyson Tuttle -- Chief Executive Officer\nHi Gary, this is John. Yeah, really no change in terms of the capital deployment. We are expecting to deploy roughly $2 billion of the cash that's in the company now, which is around $3.3 billion currently ahead of final payments for taxes and fees, et cetera, associated with the deal. No change in our view of how that might come about either through share repurchase pr" ]

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[ "s Group\nThis is Eric. At least I can speak for the mobile business. We sell very few discrete power amplifiers or HPT solutions. The vast majority of what we are selling is combined modules that include filter and advanced switching capabilities.\nSo at least I haven't seen a competitive element there with the GaAs HPT supply.\nRaji Gill -- Needham and Company -- Analyst\nOK. And on the 5G side, there has been one competitor who basically indicated that there would be a little bit of a pause with regards to China, the build out in 5G, after a lot of deployment or a lot of orders of massive MIMO deployments. But that seems to differ from what you're saying in terms of China's ramp. Just wanted to get a sense, has there been an overbuild perhaps or is there other factors?\nBob Bruggeworth -- President and Chief Executive Officer\nThis is Bob, I'll go and take that. From our conversations with carriers there and what all you can see, I don't think there's been a slowdown in base stations. In fact, there's another round coming out for an even larger RFQ for additional base stations late this year, I think it's November. So we're not seeing any slowdown in the rollout on the infrastructure side.\nOperator\nThank you. We will take our next question from Carl Curtis of Barclays.\nCarl Curtis -- Barclays -- Analyst\nHey, guys. Maybe just on the Huawei impact of $172 million, is there any way to kind of gauge how much of that impact is IDP? I'm just trying to understand these moving pieces. I know you said the base stations had a good quarter. So I assume that in June even though you stopped shipping to Huawei partially in the quarter, that business was still up.\nI'm just trying to understand. Thanks.\nBob Bruggeworth -- President and Chief Executive Officer\nYou can go ahead...\nEric Creviston -- President, Mobile Products Group\nYeah. In the June quarter, base stations still had nice growth year over year, well into the double-digit range. And so the other end of the question, as far as amount of revenue by business units split out, we don't split it out.\nMark Murphy -- Chief Financial Officer\nWe don't provide that.\nEric Creviston -- President, Mobile Products Group\nDetails down that level by business unit.\nCarl Curtis -- Barclays -- Analyst\n", "Got you. And then maybe I could ask you the other way, you're looking for some slight growth at mobile into September. You talked about seasonal ramps. Can you maybe give us a little more color as to where you're getting that growth? And obviously, a part of Huawei, you're offsetting there, so I'm just kind of curious if you can talk geography -- by geography or whatever color you can provide will be helpful.\nThanks.\nEric Creviston -- President, Mobile Products Group\nSure. Sure. This is Eric. The growth in mobile in September quarter is driven by normal seasonality of flagship ramps going into the second half across multiple top-tier customers.\nAnd again, it's muted significantly then by the Huawei sequential effect.\nCarl Curtis -- Barclays -- Analyst\nThanks.\nOperator\nThank you. We'll take our next question from Toshiya Hari from Goldman Sachs.\nToshiya Hari -- Goldman Sachs -- Analyst\nHi, guys. Thanks for taking the question. I was hoping to better understand your September-quarter revenue guide on a year-over-year basis a little bit better. I think if we take the midpoint of your guide, your revenue is expected to be down about $130 million.\nHow much of that is Huawei? How much of that is your biggest customer in the U.S.? Active-Semi obviously is up. I'm assuming non-Huawei IDP is up. If you kind of walk through some of the pluses and minuses on a year-over-year basis, that will be helpful. Then I have a follow-up.\nBob Bruggeworth -- President and Chief Executive Officer\nThis is Bob. I'll take it on a high-level. I mean, primarily in our largest customer, we are roughly flat year over year. Huawei is the largest part and we are down a little bit in China.\nIf you remember last year at this time, we talked about the China market was doing extremely well and we were taking a conservative view on it, whic" ]

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[ "a, we're seeing strength continuing. One, obviously, they're past most wave most of the wave. So we see them continue strong. And two is, I think there's also they have China fabs that concerns around some of the new export controls that are being talked about in Washington. So we continue to see the China fabs continuing to invest as well as they're trying they're making both technology and capacity investments for a lot of the other fabs that are more related around technology investments, especially in the memory space. So we're still seeing strength in China, and we expect that to continue, especially while the pause is going on. The range on WFEs, what we're seeing from different pundits is basically, at best, it's flat and the worst not at the worst, but a lot of the estimates are single-digit decline.\nAnd for the sake of planning, obviously, we do for the next quarter guidance, we're not looking at WFE numbers, we're looking at real orders and the situations around those. But as part of the range of where WFE could end up, like I said, a single-digit decline off of 2019 to flat. And then we don't really plan around any other scenarios that are more extreme than that, but of course, we have plans in place for when those do happen. So that I think that those are reasonable expectations, especially since the WFE has been somewhat, not immune, but less affected through at least the first half of the year under the belt. So we'll have to see what happens in the second half.\nDavid Duley -- Steelhead -- Analyst\nVery much appreciate the perspective. Thank you.\nOperator\nAnd the next question will be from Dick Ryan with Doherty. Please go ahead.\nDick Ryan -- Doherty -- Analyst\nThank you. So Jim, one of your longer-term goals has been to increase contributions from other key customers. Has the current environment shifted any of that potential sorts of market share gains, your ways, or is it still too early to tell on that?\nJim Scholhamer -- Chief Executive Officer\n", "No. To date, especially our effort to grow, as you're right, our effort to grow, like 1/3 customer at 10% reporting, those that continues to go very well. We've done some we've had a series of very nice wins with one of the OEMs who's not in our top two. So that, we continue to see a lot of success in that. And a lot of those are projects and products that are coming out in next year, and those tend to continue regardless of what's happening in the moment. Those are the new product lineups. So we continue to see great successes in winning some programs and projects in that space. And so to date, we haven't seen any impact on our road map to as we expand our share.\nDick Ryan -- Doherty -- Analyst\nOkay. And I heard the guidance for Q2, but did you I may have missed it, but did you talk about what your expectations are for each of the segments, the product and services for Q2, kind of the mix?\nJim Scholhamer -- Chief Executive Officer\nNo. We didn't break out by product line. But I think, as you can see, the revenue is nearly flat than we're projecting, so you can expect a similar mix.\nDick Ryan -- Doherty -- Analyst\nThank you and congratulations.\nJim Scholhamer -- Chief Executive Officer\nThank you.\nOperator\nThe next question is a follow-up from Quinn Bolton with Needham & Company. Please go ahead.\nCharles -- Needham & Company -- Analyst\nHey thanks for taking my call. Regarding the some of the OEM shifting some volumes to your way in the first quarter, can you let us know whether those market share shifted? Are they permanent? Or do you think they will go back to the original supplier? I just wanted to understand how we understand there's ebbs and flows in terms of share dynamics. But what's already shipped to go away, would they go away or they will stay with you?\nJim Scholhamer -- Chief Executive Officer\nYes, sure. Yes, obviously, some of them are clearly temporary shifts just around the situation, but I think it'd be reasonable to expect that some of the shifts would continue based on continued uncertainty around supply chain and our strong performance that we've ha" ]

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[ ".\nAnd I also talked about the thematics and we're really excited about a disruptive growth model that includes crypto, perhaps Bitcoin and Ether together with the sort of true thematic. So you're going to hear more from this.\nWe're getting these models seeded very, very shortly. And we expect perhaps next month to have more details to share, but we couldn't be more excited. We think the leadership team at Onramp is -- led by CEO and Co-founders, Tyrone Ross and Eric Ervin. A lot of experience working with advisors in the space and we couldn't be more excited to be working with them on that.\nJonathan Steinberg -- Founder and Chief Executive Officer\nAnd just one other thing on there as well. I mean, that's one of the really great things about models, as they are more relationship-based as a starting point versus being product based, but they do allow us to tie together what we're doing on the product side and they really allow us to tie together some of these other large macro themes.\nI mean, if you think about it, mutual funds to ETFs, big macro theme and wealth management models, ESG and an emerging one being crypto. And in models, we're able to bring that all together. And so, we've got the models, as Jarrett just talked about, that we've launched already. But coming, not only models with crypto, but ESG models as well. So models are just a great initiative for us and they remain a major push for us. And again, doing well so far.\nJeff Drezner -- KBW -- Analyst\nGreat. Thank you for that. Appreciate the help.\nOperator\nOur next question comes from Michael Cyprys with Morgan Stanley.\nMichael Cyprys -- Morgan Stanley -- Analyst\nHey. Good morning. Thanks for taking the question. Maybe just coming back to the US Bitcoin product that you guys filed for. I was just hoping you could maybe elaborate on the product itself. I think you mentioned it's a trust. How does that differ from other ETFs from a product standpoint?\nHow does it differ from other existing ones that you have seen being filed in the marketplace? I think you had mentioned some others like the VanEck product, how does it differ from that? And how does it differ from your European product that you already have in the marketplace?\nJonathan Steinberg -- Founder and Chief Executive Officer\n", "Really, we're building off of our European product. And again, these are early days. And so, not all exposures and filings are created equally. I think we really have answered all of the concerns that regulators have.\nWe're showing how well it works in Europe and bringing, sort of, what we believe to be best constructed best practices, best execution in structuring in Europe, really, which means, at the moment in the world and we're bringing that expertise and similar structure here to the United States.\nI don't want to go into really the differences that we are aware of for competitive reasons, but we're very optimistic that our filing will be among the first if not the first approved in the US.\nMichael Cyprys -- Morgan Stanley -- Analyst\nAnd then maybe just on the European side, you had mentioned the cross listing of your European Bitcoin product and that you might be able to get retail investors on board. I guess, maybe you could just talk a little bit about your distribution strategy, how many platforms is this product going to be available on and what's the sort of limitations around retail being able to buy and participate in this product in Germany and also more broadly around Europe?\nJonathan Steinberg -- Founder and Chief Executive Officer\nSo expanding into Germany opens up all of Europe. The product is institutional for sure and we're getting -- and those are a slightly longer sales cycle than retail. So, we're building up a significant pipeline of interested institutional investors. But also, recently with the German -- expansion into Germany, we have a little more flexibility into retail, retail that finds the fund on their own or retail that has the support of their advisor. Retail is able to buy our funds. So, it has been an expansion of the opportunity set to retail, w" ]

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

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[ "he -- it is going to change the mix. It's going to change -- you're not going to see a lot of new energy resources go into play. What they're going to figure out how to do is get more out of it, more efficiency, more productivity state [Phonetic] and all those different things which will be good for us. It's a good thing, other than the fact that there won't be any new fields for many, many years for us to deal with from an installed base. So, we'll be -- the KOB3 will become more and more significant for us and the upgrades they're going to have to spend around that to be -- from a productivity and quality and safety issue, which are all good things for us because that's not a jump ball-type of big project, it's going to be -- you're going to be mining your installed base. And we have the strongest, the strongest by far of the global service support organization around the world for all the oil and gas industry. And as you know, we've been making huge investments in that over the last couple of years and that will really pay dividends for us as they start changing that mix. But that's why I think what's going to happen is, we'll see that industry continue to shrink relative to investments, but our profitability should be pretty good once they start spending that money. So, that's the way I see it.\nLal, what are you hearing from your guys in the field right now?\nLal Karsanbhai -- Executive President, Emerson Automation Solutions\nYeah. I think that's right, David. Just three things to add there, Andrew. The first is, I still believe and we still are executing around the investments for the globalization of natural gas.\nDavid N. Farr -- Chairman and Chief Executive Officer\nCorrect.\nLal Karsanbhai -- Executive President, Emerson Automation Solutions\nMethane will continue to be a viable energy source in industry and in power generation combined with cycle and we're seeing those investments continue, be it at Exxon, Shell, anyone around the world. So, that's important to note that it's not purely an oil and gas across the board. The second is the technology investments that drives reliability, safety, smart operations are still -- will continue to be very viable. A lot of those fall within our digital transformation business and we continue to see those go forward.\n", "And then lastly, Andrew, we talked about a little bit earlier is the applicability of our technology for the decarbonization efforts.\nDavid N. Farr -- Chairman and Chief Executive Officer\nCorrect.\nLal Karsanbhai -- Executive President, Emerson Automation Solutions\nFor the sustainability efforts that these customers are driving and a very broad set of applications which we'll flesh out in more detail for you in February and highlight but that's an opportunity for us to change our mix within the customer spend.\nDavid N. Farr -- Chairman and Chief Executive Officer\nSo, all the big oil and gas customers right now are engaging pretty heavy with Stuart Harris and Lal's business profile on digitalization and how they're going to try to reduce their carbon use. And that's where -- that's a benefit to us because it's a sensor business. It's more of a technology business and we're -- that's our strength. So, as that shift happens, we'll still have pretty good sales and we'll definitely have better profitability over the long-term. So, it is a shift that we're all going through, but I think it's going to benefit us as a Company, given our presence and our digitalization position and all the things we've been doing relative to that over the last 20 years. I like the hand we have right now.\nAndrew Obin -- Bank of America -- Analyst\nGot you. And just a follow-up question on Commercial & Residential Solutions. Asia and Middle East and Africa down. Just a little bit surprising given the pace of recovery in China. Is it China, is it something else and maybe more color on what's happening specifically -- what are you seeing in China specifically? Thank you.\nDavid N. Farr -- Chairman and Chief Executive Officer\nGo ahead, Jamie.\nJames Froedge -- Executive President, Emerson Commercial" ]

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[ "is we added to the order book. We're not providing guidance yet.\nBut at the time and point when we're able to with confidence provide more color around things like order book and installs, we absolutely will. It's just still early for us. In terms of the emerging growth segment specifically, we directly haven't heard or seen too many people that at this point are rethinking purchasing decisions or rethinking their investment into their own businesses to advance their science. And I think that it's going to take some time.\nI mean taking a step back, the figure that we quoted on the earnings call just a few moments ago, the number or the amount of capital that's flowing into the space over the last two years, a lot of that's going to need to be put to work. And people are going to need to spend that capital to advance their efforts internally. That being said, I think we're going to have to be adaptable to how customers want to step into a new technology or spend money. And that might be different solutions.\nIt might be reagent rental. It might be a capital lease. It might be just having to walk people through and show them how there's real cost savings holistically with one of our sequencers and their specific use case over the alternative. But the need is still there and these companies are well capitalized.\nThey're going to have to invest in it and a lot of that investment is going to need to be in sequencing to advance their own efforts.\nMatt Sykes -- Goldman Sachs -- Analyst\nGreat. Thank you.\nOperator\nOK. The next question is coming from Michael Ryskin with Bank of America. Your line is live.\nMike Ryskin -- Bank of America Merrill Lynch -- Analyst\nGreat, excellent. Thanks for taking my questions, guys. Following up on the previous question, I want to start with the evaluation process for some of these customers. There's been some preliminary data published.\nYou've got your own data sets out there comparing the G4 with some comparator systems. But I want to go through the process that your customers and your potential customers are going through when they're making that purchasing decisions. Can you just walk us through the process? What data points are they looking at? Sort of how long is that validation process go? And sort of just if you could give us some case studies of that. Thanks.\nDrew Spaventa -- Founder and Chief Executive Officer\n", "Yes. So it really does vary by customer type. If you're talking about kind of academic labs, it's going to be a longer sales cycle in general. And there's probably going to be more back and forth over a longer period of time to really make sure that you have buy-in.\nAcademic cores typically have budgeting cycles, and you really want to start conversations early and get ahead and know who has budget for a new system and really have a more tailored approach to engaging and bringing them forward. And for the academic cores, cost is really a big part of it. So you have to understand the nuances of their applications. You have to walk them through how they would use the applications on your system.\nYou're going to have to provide data, whether it's publicly available or other data that's not publicly available yet, that we would engage with the customer and really get them confident that the system can perform. And once they're confident the system can perform, they're going to have to see a cost savings relative to alternatives typically. Now there's some academic cores that have specific value propositions, where the speed and the flexibility specifically makes it a very different dynamic for them to purchase. And again, those are where we want to, for a large part, focus our efforts, places where our competitive advantage really highlights the need to adopt our system versus others.\nAs we're thinking about other customers, whether they're emerging growth customers or commercial labs, typically with a private entity, it's a quicker buying decision, but there's still that hurdle where you need to get them comfortable the sequencer is going to meet their needs. So we offered and will con" ]

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

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[ "0 trillion expected global investing in climate transition is going to spread across traditional asset classes. And just as we saw in technology that assets that started in private equity like data center and tower has eventually move into infrastructure at an accelerated pace.\nThe same is going to happen here. It's already happening in renewables and it will happen in a number of other of the themes that we're playing. So from our thematic approach, there's clear opportunities in infrastructure. And as the companies we create in private equity mature, there will be clear opportunities in crossover investing between the public and private market.\nAnd finally, if you look at the capital that's been set up for this transition. A lot of it will be in the private credit markets. And I think there's an opportunity to address that entering on a thematic basis as well as entering from a credit perspective. So this is early days in a very large area, and we're making sure that we're considering all of the adjacencies while also being prudent in capital deployment pace.\nJack Weingart -- Chief Financial Officer\nAnd, Brian, it's Jack. On retail, high net worth, we definitely continue to see longer-term high net worth, a big area of expansion for us. As you know, it's relatively low as a percentage of our investor base today compared to some of our peers because our product set is really self-focused on long-term lockup funds that are really applicable to the highest end of the high net worth segment. We do have active campaigns planned or already underway for all of our products in market today with different channel partners to access high net worth capital.\nThat would be true in TPG 9, Healthcare Partners 2, Rise 3, the Asia business, the secondaries business, life sciences, all of those, we have planned multiple engagements with high net worth channel partners. Typically, in a campaign like that, you don't lead with retail, you end up -- you have your initial closes with institutions. So the success we've had in raising capital across all these funds has actually been without much high net worth to date because we're planning those high net worth campaigns to follow the successful institutional closures that we already had. So that's kind of upside from today forward.\n", "It's definitely the case. There's been a lot of written about this, that more weighted toward the lower end of the high net worth market, that some of the capital has been raised in more in more liquid vehicles with redemption rights. I think you're starting to see that the lower you go down the high net worth market, the more risk off mentality, we're starting to see kick in and high net worth market overall has definitely backed off of their growth at this point. We see that as a near- term issue.\nLonger term for us, we still see a lot of opportunity to expand our capital base in the channel.\nOperator\nThank you. This does conclude the Q&A portion of today's call. And I would like to turn it back over to Mr. Gary Stein for additional or closing remarks.\nGary Stein -- Managing Director and Head of Investor Relations\nGreat. Thanks, operator. Thanks, everyone, for joining us today. If you have any additional questions, please follow up with me or Ebony.\nOtherwise, we'll look forward to speaking with you again next quarter.\nJon Winkelried -- Chief Executive Officer\nThanks, everyone.\nJack Weingart -- Chief Financial Officer\nThank you.\nJim Coulter -- Co-Founder and Executive Chairman\nThanks.\nOperator\n[Operator signoff]\nDuration: 0 minutes\nCall participants:\nGary Stein -- Managing Director and Head of Investor Relations\nJon Winkelried -- Chief Executive Officer\nJack Weingart -- Chief Financial Officer\nCraig Siegenthaler -- Bank of America Merrill Lynch -- Analyst\nAlex Blostein -- Goldman Sachs -- Analyst\nKen Worthington -- J.P. Morgan -- Analyst\nBrian Bedell -- Deutsche Bank -- Analyst\nGlenn Schorr -- Evercore ISI -- Analyst\nTodd Sisitsky -- President and Co-Managing Partner\nJim Coulter -- Co-Founder and Executive Chairman\nMichael Cyprys -- Morgan Stanley -- Analyst\nRobe" ]

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