Marvell Technology, Inc.

Our non-GAAP gross margin was 61.2%. Non-GAAP operating margin was 29%. And our non-GAAP earnings per diluted share was $1.51. We returned $357 million to shareholders through dividends and buybacks. Moving on to our financial results for the fourth quarter. Revenue in the fourth quarter was $1.427 billion. exceeding the midpoint of our guidance, growing 1% on a year-over-year and sequential basis. Data center was our largest end market, driving 54% of total revenue. The next largest was enterprise networking with 19%, followed by carrier infrastructure at 12%, consumer at 10%, and auto industrial at 5%. Gap gross margin was 46.6%. Non-GAAP gross margin was 63.9%, growing 330 basis points sequentially, driven by a significantly better product mix as we had expected. Moving on to operating expenses. GAAP operating expenses were $697 million, including stock-based compensation, amortization of acquired intangible assets, restructuring costs, and acquisition-related costs. Non-GAAP operating expenses were $429 million, in line with our guidance. These results reflect the successful completion of our fiscal 2024 cost reduction plan we had outlined at the beginning of the year. GAAP operating margin was negative 2.3%, while non-GAAP operating margin was 33.8%. For the fourth quarter, GAAP loss per diluted share was 45 cents. Non-GAAP income per deleted share was $0.46, growing 12% sequentially. Now, turning to our cash flow and balance sheet. Cash flow from operations in the fourth quarter was $547 million. I'm pleased to report to you our second straight quarter delivering robust operating cash flow of over $500 million. Our inventory at the end of the fourth quarter was $864 million, decreasing by $77 million from the prior quarter. Our DSO was 77 days, decreasing by a day from the prior quarter. We returned 52 million to shareholders through cash dividends. In addition, we repurchased 100 million of our stock during the fourth quarter, doubling from the prior quarter. We expect to further increase repurchases in the first quarter of fiscal 2025. As you saw earlier today, Marvell's board has approved the largest repurchase authorization in our history. increasing our current plan by $3 billion, which brings our total available authorization to $3.3 billion. Our total debt was $4.17 billion. Our gross debt to EBITDA ratio was 2.19 times, and net debt to EBITDA ratio was 1.69 times. As of the end of the fourth fiscal quarter, our cash and cash equivalents were $951 million, increasing by $225 million from the prior quarter. Turning to our guidance for the first quarter of fiscal 2025. We are forecasting revenue to be in the range of $1.15 billion, plus or minus 5%. We expect our gap gross margin to be in the range of 44.5% to 47.2%. We expect our non-gap gross margin to be in the range of 62% to 63%. We are forecasting a sequential decrease in non-GAAP gross margin due to lower revenue impacting fixed cost absorption. Looking forward, we expect that the overall level of revenue and product mix will remain key determinants of our gross margin in any given quarter. For the first quarter, we project our GAAP operating expenses to be approximately $676 million. We anticipate our non-GAAP operating expenses to be approximately $455 million. This forecast includes a step up from the prior quarter due to typical seasonality in payroll taxes and employee salary merit increases. For the first quarter, we expect other income and expense, including interest on our debt, to be approximately $48 million. We expect our non-GAAP tax rate of 7% for the first quarter. We expect our basic weighted average shares outstanding to be $866 million and our diluted weighted average shares outstanding to be $875 million. We anticipate gap earnings per diluted share in the range of a loss of 18 cents to a loss of 28 cents. We expect non-gap income per diluted share in the range of 18 cents to 28 cents. Operator, please open the line and announce Q&A instructions. Thank you.

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Hey, guys. Thanks for really asking the question. Clearly, it's kind of tail two cities. The data center and AI side is going to be really strong. The rest of it, not so much. So why don't we just get the bad news out of the way first. Matt, the magnitude of the drops next to your data center are kind of shocking. Can you just walk us through how much of that is something that is not going to come back? you know, some of the stuff in 5G, et cetera, versus what do you view as just taking the cyclical medicine and then a snapback should ensue soon thereafter?