Ladies and gentlemen, thank you for standing by, and welcome to the Second Quarter Fiscal 2021 Marvell Technology Group Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today’s conference is being recorded. [Operator Instructions] It is now my pleasure to introduce Vice President of Investor Relations, Ashish Saran.

Thank you, and good afternoon, everyone. Welcome to Marvell’s second quarter fiscal year 2021 earnings call. Joining me today are Matt Murphy, Marvell’s President and CEO; and Jean Hu, our CFO. I would like to remind everyone that certain comments made today may include forward-looking statements, which are subject to significant risks and uncertainties that could cause our actual results to differ materially from management’s current expectations. Please review the cautionary statements and risk factors contained in our earnings press release, which we filed with the SEC today and posted on our website, as well as our most recent 10-K and 10-Q filings. We do not intend to update our forward-looking statements. During our call today, we will refer to certain non-GAAP financial measures. A reconciliation between our GAAP and non-GAAP financial measures is available on our website in the Investor Relations section. With that, I’ll turn the call over to Matt for his comments on our performance.

Thanks. Ashish, and good afternoon, everyone. During the second quarter of fiscal 2021, we delivered strong financial results and achieved $727 million in revenue, $7 million above the midpoint of guidance. Revenue grew 5% sequentially and 11% year over year. Our GAAP loss per share was $0.24. Our non-GAAP earnings per share was $0.21, above the midpoint of guidance, driven by higher revenue, better gross margins, and lower operating expenses. We’re now halfway through our fiscal year, a time period, which has turned out to be very different than we had all imagined, impacted by a global crisis that has significantly disrupted our daily lives and altered our work environment. The Marvell team has met these challenges head-on and has been executing at a very high level. I’m continually impressed by the relentless determination of our engineering teams in the face of a multitude of unprecedented circumstances, like having to manage a chip bring up remotely. I have proudly watched our sales, marketing, and support teams embrace Marvell’s new brand identity and use current circumstances to increase customer engagement. In times of uncertainty, I believe that we benefit significantly in building upon our existing, deep-rooted engagements. When customers make forward-looking platform decisions, their experience with our products and trust in our team works to our advantage. We have continued to close design wins at an impressive rate. While getting a design win is a critical milestone, getting our customers to production and volume ramp is the ultimate goal. To that end, over the last few months, we have received customer approval to move into production several key programs, including a critical SSD controller and a cloud ASIC which are both ramping now, and a 5G baseband processor for Nokia is expected to start ramping later this fiscal year. Let me…

Thanks Matt and good afternoon, everyone. I’ll start with a review of our financial results for the second quarter and then provide our current outlook for the third quarter of fiscal 2021. Revenue in the second quarter was $727 million, above middle point of our guidance. Networking represents 56% of our revenue in the second quarter with storage contributing 40%. Revenue from other accounted for 4% of revenue, declining 25% sequentially and 41% year-on-year. As a reminder, this business consists of product we have stopped investing in. So, we expect they will continue to decline over time. Our guidance for the third quarter anticipated a small sequential decline in revenue from these products. GAAP gross margin was 49.4%. Non-GAAP gross margin was 63.3% of revenue, better than expectations, reflecting the hard work from our operations team to drive operational efficiency to improve our product costs. GAAP operating expenses were $511 million, and they include the cost of share-based compensation expenses, amortization of acquired intangible assets, acquisition and divestiture related costs as well as the impairment and other related restructuring charges as a result of the changing scope of the similar processing program Matt discussed earlier in the call. Non-GAAP operating expenses were $297 million, $3 million lower than expected, primarily because of our continued focus on OpEx management. GAAP operating loss was $151 million. Non-GAAP operating profit was $163 million or 22.4% of revenue. For the second quarter, GAAP loss per diluted share was $0.24. Non-GAAP income per diluted share was $0.21, above the midpoint of the guidance. Now, turning to our balance sheet. During the quarter, cash flow from operations was $226 million. Our team continues to drive the improvement of working capital metrics in the second quarter. We improved our days of sales outstanding to 61 days and…

Certainly. [Operator Instructions] Your first question comes from the line of Blayne Curtis with Barclays.

Hey, guys. Thanks for taking the question. Nice results, obviously, given the backdrop in enterprise. Matt, I was just kind of curious, you mentioned as you were walking through, you spent a lot of time on ASICs. You mentioned a new design win with hyperscaler. I don’t know if you could give any color with that, but maybe just thinking broader, if you can kind of just give us a flavor as to the types of wins that you mentioned you are picking up in types of segments I think both across wireless and networking, that would be helpful.

So, on the hyperscale win, as I said, we’re pretty excited about that. I think bringing the Avera team into Marvell has created a much more relevant portfolio and broader portfolio for all the hyperscale accounts, and I think it was a great testament to the capability of the team to actually break into a new one. As you know, due to the nature of the ASIC business, these are highly confidential type of engagements that we have, so we can’t go into a ton of detail, but what I would say is that, broadly speaking, our 5-nanometer platform is being extremely well received, both from an ASIC as well as a standard product offering. And what I mean is, when you go out into not only hyperscale, but also the 5G market, and enterprise. We’re migrating the entire Marvell platform across multiple product lines, jumping into 5. So, it’s much broader than just an ASIC engagement. In fact, it’s -- you should assume that our Ethernet business, our OCTEON platform and others are all going to migrate. And so, it’s just created a very rich and compelling set of IPs and engagement model that’s been well received. And so, this is one example of that where we’re actually gaining new customers for new types of technologies. And hopefully, there’ll be more to come on that as we head towards the Investor Day that we just announced in early October to give even more details around our technology platform and the various engagements that we have and talk about them in as much detail as we can at that time, Blayne.

And our next question comes from the line of Vivek Arya with Bank of America.

Thanks for taking my question, and congrats on the good outlook despite all the headwinds. So, Matt, I’m just curious. You mentioned two kinds of headwinds, one because of all the restrictions in terms of shipping to customers in China, and I think separately you also mentioned some headwinds because of COVID and fiber channel. I was hoping if you could address and maybe quantify how much of those headwinds, and I think specifically on the China customer headwinds, do they -- just do those sales just go away? Are some of that recoverable with some license? I’m just curious what is the China exposure now in terms of kind of wired, wireless, and enterprise mix?

Sure, yes. I’ll answer it separately because I think, there are two different dynamics. I think that the China situation obviously is broadly impacting people. And certainly, all of our disclosures, we always call it out as a risk factor just in general. But just to be very clear, in terms of our guidance for the third quarter, there are no China headwinds included in that. So, that was not something that we’re saying is a big part of any headwind we’re seeing there. I mean, it could be minor, but it’s not really material. But, really the central issue in terms of just the growth sequentially, which is still up quarter-over-quarter, certainly would have been better if enterprise had performed maybe where we thought there would have been a few months back, was really around the enterprise market. We saw it in both of our -- both in our networking business, really where we sell Ethernet solutions into things like enterprise campus and SMB, and then also our fiber channel business, which is pretty broadly deployed in a number of enterprise applications, including storage, and that also is projected to be down in the third quarter. And that business, just to note, is generally pretty stable. It doesn’t fluctuate around a whole lot. And so, we definitely are noting it for Q3. So, I would say, ex-those trends in the enterprise very specifically, the rest of the business is obviously performing very well in terms of the strong growth we’re seeing sequentially in our 5G customers, which if you look out to Q3, assuming we achieve what we believe that would be five quarters in a row of quarter-over-quarter growth in that market. And then, in cloud datacenter, again another up quarter after a really strong Q1 and Q2. So that’s really the nature of the headwinds that we’re calling out there. We’re very, very focused on the enterprise set of issues that are out there.

Thank you.

Sure.

Thank you. And our next question comes from the line of John Pitzer with Credit Suisse.

Hey, Matt, Jean. Congratulations on the solid results. Matt, I was wondering if you could just spend a little bit more time on the 5G drivers. I mean, clearly, there’s been some of your peers after several quarters of very strong growth that are kind of characterizing September, October as sort of a digestion period for the 5G wireless CapEx. And I know you’ve got a lot of Company-specific drivers. But, I was hoping you could help me understand what percent of revenue is 5G today? And as you look out into October, what percent might it be? And I guess importantly, how much runway do you have of Company-specific drivers before you become a little bit more dependent upon the overall macro backdrop for spending?

Sure, yes. Great, question, John. And you’re right to note that the performance we’re seeing in that business is really very, very specific to us. And because we didn’t have very large share in 4G, we’re not really seeing that counterbalance that maybe others were -- that are more broadly exposed to both. And then, as you’ve seen, we have new products ramping, we have new OEMs. They’re going into production. We have certainly regionally -- there are regions like China is one example, we called out that is obviously very aggressive in deployment. So, we have a lot of wind at our back in terms of the 5G business. And then, of course, in front of us really is still all the other major geographies, which are projected at various stages to roll out 5G, and then we have new content with new customers also in front of us with Nokia being an example. So, I think, the longer view is it’s going to take us a while, which I think is a good thing, to be at a point where we’ll kind of represent the market. I think, the market needs to develop and 5G would need to be a bigger portion of the total wireless CapEx out there, and then our design wins would have to ramp. So, I think that’s something that we’re -- well, it is a choppy market. We certainly feel like at least at this point, based on our own product cycles and our own design wins that we achieved, that’s why the business is performing that way. And it continues to grow every quarter in terms of revenue as a percent of total, and just as a net amount. And when you think out to the Investor Day, we typically take that opportunity to frame the various markets and our sizes and our shares. And so, sort of look forward to the Investor Day to get a more comprehensive view from a market standpoint of where we are. But, we’re very pleased at the growth rate of that business, similarly to where we were happy with the growth rate of our cloud business and its representation inside the Company. Both of those are working really well for us right now.

Perfect. Congratulations.

Thanks John.

Thank you. Our next question comes from the line of CJ Muse with Evercore.

Hey, CJ. Are you there? Why don’t we go to the next question, please?

Wait for a moment, please. Pardon me. CJ Muse, please check your mute button.

Let’s just go to the next question. Operator, can we move to the next question please?

Operator, do you want to just move us to the next person’s question, please?

Hey, operator, can you just move to the next person’s question?

I just got a message. I think, the operator is having technical issues. So, just hang on for a second.

Pardon me. This is the conference coordinator. I do show our next question comes from the line of Tore Svanberg from Stifel. Please go ahead.

Yes. Thank you and congratulations on the results. Matt, I had a bit of a broader question for you. You talked a lot about 5-nanometer, you talked about custom ASICs. I know recently you talked a lot about edge processing. It just seems like the world is changing right in front of us. And I’m just wondering what that means for Marvell as a company, but perhaps more importantly, for the whole business model because it does seem like we are a bit at an inflection point on all those fronts.

Well, I think you are right. And you certainly look downstream, Tore, in the design chain all the way to the OEMs. And I think the level of digital transformation that’s occurring certainly in companies and in the equipment that needs to get designed to service these new needs is quite dramatic. And so, we’re aware of that. And, I think that really is playing to our advantage, to be honest with you. I think, when you look at what our customer base wants, it’s a unique blend. They want access to the leading edge IP. And maybe that sounds like table stakes, but they have their own very critical applications that they’re trying to serve, and they’re trying to do that in a lot of cases with much higher performance than they ever had to deal with before or much lower power, especially as applications move closer and closer to the edge. And so increasingly as well, the other trend I would note is that the intersection of computing, of networking, security and even storage, these key IPs for the data infrastructure, they’re all tending to blend together in a lot of ways in terms of what customers want to go do. And what that really speaks to is you need to have flexibility in your model in order to service these opportunities. And I think one advantage we have, Tore, at Marvell is that we’ve by design, developed this extremely flexible business model from merchant offerings where customers can prove about our IP because they can just go buy the part to this partner model we innovated, where it’s a combination of our intellectual property and our customers to drive time to market as well as just being able to service this huge opportunity for custom silicon. And so, I think when I look forward, we’re very enthusiastic about all the opportunities in front of us, and also the way that the platform we are really able to leverage. And when I mean platform, I mean, our design win platform, our technology platform where we don’t have a lot of random adjacent businesses. What we do for a living is we do this data infrastructure silicon really, really well, and we do that in a very concentrated manner. And you see that both in our -- now our 5-nanometer platform, which we announced this week with TSMC and the translation of all that investment and the focus we have actually, surprisingly, even driving lower operating expenses than we had before. So I think it’s a unique combination. And Tore, I would just say you nailed it. There is a big opportunity for Marvell on the go-forward here.

I show our next question comes from Karl Ackerman from Cowen. Please go ahead.

Jean, it’s great to see the solid execution on OpEx. I’m curious, though, what’s the argument for OpEx to not trend toward 30%, even if we assume flattish revenue from here, particularly given the maturity of the storage TAM and the co-investment from customers for processors? Thank you.

Yes. First, we’re really pleased that our team has done a great job to reduce the OpEx to $280 million quarterly run rate versus our original expectation. It’s more like a $300 million when we entered into fiscal ‘21. So that’s just a tremendous effort by realizing more synergies from Avera and Aquantia integration and also just operational efficiency across the board. So, if you think about that, we’re investing in the right level and with our portfolio adjustment, the portfolio optimization, we constantly review as a company. We do see actually driving the revenue ramp. If you look at our Q3 guide, it implies revenue year-over-year growth of double digit. And the continued revenue ramp with the current operating expense level, we do think our model are going to show tremendous leverage and continue to drive the earnings expansion. If you look at our Q3 guide, the operating margin at the middle point of our guidance actually is close to 26%. So, I think we are setting up a great business model with the OpEx level to invest and to continue to expand.

Thank you. I show our next question comes from Quinn Bolton from Needham.

Hi, guys. This is Michelle on for Quinn. Thanks for taking the question and congrats on the results. So, my question is on the storage business. I know you guys don’t break out the storage controllers from Fibre Channel. But, I was wondering if you can give some color on how the 2 segments are broken up within that bucket. So, I’m just trying to figure out like the puts and takes for the Fibre Channel decline and trying to determine kind of like the magnitude.

Hi. Michelle, I’ll help you give you some color. We typically don’t give all the details and report all the details. But to help you out, the way to think about it is Fibre Channel business, the overall market opportunity of SAM is about $500 million each year. It’s quite a stable market. Actually, it’s a split between Marvell and Broadcom. So, largely, we are very much similar size. And so, if you think about our Fibre Channel business, it’s all selling into the enterprise data center on-premise. So, current weakness certainly impacts it tremendously. Sequentially, the revenue declined actually to 20% quarter-over-quarter. So, it’s quite significant. Hopefully, that will give you some color. But we don’t break down the details within the storage category generally.

Thank you. I show our next question comes from Gary Mobley from Wells Fargo Securities. Please go ahead.

I wanted to dig a little bit deeper into the ThunderX ARM-based service development. And so, to what extent was that $121 million charge related to the restructuring development of Thunder? And how does it impact your joint development, I guess, cost-sharing relationship with ARM and as well the related option for them to take some Marvell equity? And then, the ThunderX3 that you highlighted at Hot Chips last week, is that -- should we think about that as being funded by maybe one or two specific customers?

So Gary, we’ll divide this question in two pieces. I’ll answer the impairment part, then Matt can talk about the strategic side of the ARM business. So, the impairment actually is quite straightforward. As you recall, we acquired Cavium, and we closed the transaction two years ago. So, there’s a very small piece of developed technology intangible related to all the TX2 Cavium developed before the acquisition of Marvell acquired Cavium. So, that’s primarily, if you look at the impairment, the primary impairment is related the intangible developed technology of TX2, how Cavium did that business in the past. With our new focus going forward, definitely, those all the development technology intangible is going to be impaired. That’s the impairment part of it. I’ll let Matt answer the strategic side of the ARM server business.

Sure. Yes. Hey, Gary. So, I think at the highest level, and you know this well, we’ve had a long-term history with ARM. They’re used in almost all of our products, and we cooperate on a number of different applications, like the ARM server opportunity to 5G, automotive, et cetera. So, two companies work together. And the way you should think about, again, what we’re doing with the Thunder product line is really just focusing it. The market that we’ve always called out for this has always been the hyperscale customers. And so, what we’re basically doing is just really acknowledging that and also acknowledging the fact that it turns out they seem to really want their own thing, their own special chip. And this notion of maybe if you go back a few years to where you would have a broad-based ARM server platform that you would drive and you could sell to everybody and maybe put it on like a TikTok type of cadence and sort of run it like a normal CPU business. I think just so much has changed since we acquired Cavium and this market’s developed. ARM in the data center and ARM in servers has actually continued to get traction in the market, whether that’s with us or that’s with customers doing their own developments themselves in-house with partners. And so we expect that to continue. We’re just going to do this in a much more focused and targeted manner and with a business model that looks more like our traditional customer semi-custom model versus funding the whole thing on our own kind of in perpetuity. We’ve said basically, -- we think it’s more -- it’s better for us and better for the customers actually to do this in a more focused manner. I hope that helps.

And our next question comes from the line of Harlan Sur with JP Morgan.

Hey. Good afternoon. And good job on the quarterly execution. Good to see the diversification in the storage business driving flattish growth in what I would consider to be a very tough storage environment. You guys have been talking about the ramp of your DIY SSD controller into the large gaming opportunity. That’s starting to fire and looks to be pretty strong here in the second half. But, even on the HDD side, I believe that your second nearline HDD customer just got qualified on its 16-terabyte platform and is ramping here in the September quarter. Are you guys benefiting from this ramp here in Q3? And maybe mid to longer term, you guys also have some DIY SSD controller wins with Tier 1 hyperscalers. When do you guys expect these programs to ramp?

Yes. Great questions, Harlan. And I think, yes, if you think about the storage business, the storage controller portion is performing quite well into Q3. As Jean sort of laid the breadcrumbs earlier on the Fibre Channel business, how to think about that market size, our share of it, how much it was down, we’re basically offsetting that by growth in the -- both the SSD side, and to your point, in our custom SSD engagement as well as in both of our nearline customers that continue to ramp with our solutions of SOCs and then one also using our preamplifier solution as well. So yes, the traditional, call it, Marvell storage controller business is performing quite well in the near-term here coming off of the lows through the COVID-19, supply issues that were going on. So, that’s doing well. It’s really this very-targeted slowdown in enterprise we’re seeing within the storage areas offsetting that growth. So, the growth drivers are very much working in storage is what I would say, the areas where we put a lot of R&D and investment in cloud applications as well as in DIY. It’s nice to see the revenue coming in. And I think there’s more to come on discussions of future DIY engagements, which we’re very active in right now. Some of those have already turned into design wins with hyperscalers, and that is also part of our future growth strategy. To continue to keep storage growing is expanding with additional customers that we didn’t have before. So, more on that later.

Thank you. And our next question comes from the line of Timothy Arcuri with UBS.

Matt, I think you alluded to a design win with another 5G base station customer beyond the two that we already know about. Can you talk a little more about that and maybe help size the content for that win maybe versus the two that you’ve already talked about?

Sure. Yes. I think, yes, so there was a lot of content we went through today. But the main point was that while there’s a lot made certainly of the top five vendors, in the base station market -- and typically, those five are, call it, 90% of the total. So, it’s a big number historically. But there’s also a -- the remainder is currently quite active in this 5G transition. And I would say in almost every region, whether it’s in parts of Asia, certainly North America and other geos, there is a lot of activity there in what we would call the second tier. And the nice thing is, is that the products that we develop for the top -- call the top guys, those are all going to be available as standard products for the rest of the market. And so, for example, the win that we got that’s in the second tier, it’s using the existing parts we already have. So obviously, a lot of leverage from that because we didn’t have to go and design a brand new chip and spend a bunch of money on it, and they are able to leverage the investment that we already made. And without getting into dollars, what we did say is that the content is both the Fusion baseband, and you guys have a sense of what those go for, as well as our OCTEON embedded processor for the transport and layer 2 processing. So, we have very solid content from a processing perspective there. And I would say is, with -- the last thing, Tim, is with all the disruption going on in all the geopolitical events, I think there’s an opportunity for this second tier to actually become more relevant in 5G, whether it’s taking share from traditional incumbents or even with new standards like ORAN, where you might see new people come in and actually the meaningful participants in some of the regions. So, that’s -- again, that’s one that we’re watching. But, it’s nice that we’re able to take kind of benefit from all the hard work we’ve done to put these IP platforms together, to be able to then go in and sell those and enable other customers of ours to participate in 5G market.

Thank you. And our next question comes from the line of Ross Seymore with Deutsche Bank.

Matt, I want to go back to the enterprise side. I think, everybody understands that the demand is weak right now. It’s nothing Marvell specific. But, I wanted to dig a little bit into your views of the duration of that weakness and some of the sub causes of it. So in the past, we’ve seen the macro demand weaken and there also be some significant inventory burn that exacerbated that for a period of time. So, I guess the two parts of this question would be, is your fiscal third quarter enterprise guidance being weak, exacerbated by that inventory digestion, and do you think that continues into your fiscal fourth quarter? And similarly, are there Company-specific offsets either share gains or losses within enterprise that would be either offset or magnify that weakness?

Sure, Ross. Yes. I’d say, certainly, in the short term, we’re seeing the impacts you said. And I think some of this may be certainly inventory related. I do think that when we had the supply crunch and countries we’re shutting down left and right, I think certainly, OEMs wanted to make sure that they have some inventory. But, I would say that is also very much coupled depending on the segment you’re talking about with just straight up demand weakness just given that certain segments of enterprise companies aren’t spending on. And I think those are very well known. So -- but I’d say that the inventory part, unlike sort of, I’d say prior cycles, which I’ve been through, I’d say this one is just more on the demand side at this point. So that’s really in the short term, and we just have to deal with that. We’re still very encouraged, okay, and bullish about our enterprise offerings, once we’re through this cycle we’re in, especially as we look out to calendar ‘21. And I referenced in my remarks as well as you probably saw some of the announcements we made around our borderless enterprise. I mean, that whole thing is really code for Marvell just refreshed its entire Ethernet switching and PHY portfolio. And the last time we did that, which was a few years ago, we jumped a process node or 2 at that time. We added a whole bunch of features. We optimized the products. And we had great success. It was part of the kind of the initial Marvell turnaround story was that networking growth. And so, we see the same type of opportunity starting really next year with some of our new products, which are, again, in the latest process nodes that are…

Thank you. And the last question we’ll take comes from Srini Pajjuri with SMB.

Thank you. Thanks for squeezing me in. Jean, I have a question on the cash usage. I saw that the share count has perked up a little bit in the quarter. Just wondering how you are thinking about the cash usage as we go into the next few quarters? And maybe along the same lines, Matt, you guys have done a great job with M&A, integrating some of the acquisitions. And now that the cash flow is improving, the balance sheet is pretty strong. I’m just curious as to how you’re thinking about M&A for the next 12 months, what do you see out there in the market? What kind of opportunities you’re seeing and how you’re thinking about it?

Yes. So, on the cash usage for the next few quarters, certainly, our business will continue to generate a very strong free cash flow. If you look at the first half of fiscal year 2021, our cash flow conversion is very significantly higher than the -- more than 100% of our net income. So, I think certainly, we’re going to be able to pay down our short-term debt, which is $450 million. And the additional excess cash, we have always been quite committed to return cash to shareholders. Certainly, the macro environment is still uncertain, but we definitely will monitor and assess, if we should restart the share repurchase program. So, that’s definitely what we are considering.

Yes. And I’ll just conclude on the second topic you mentioned about M&A. So, yes, I think we’re -- first of all, we’re very pleased with how all the effort we put in, in 2019. We bid off a lot, as you remember. We sold our Wi-Fi business to NXP, and then, we purchased Aquantia and Avera. And we made those decisions candidly right kind of in the midst of trade war and a lot of uncertainty. And I think reflecting back, we’re thrilled that we made those decisions. I think, both of those acquisitions we did last year were performing better than we had anticipated when we announced them. As you saw from our results, I think, the benefit of the Marvell platform from a cost standpoint has really enabled us to run these 2 businesses that we acquired, very efficiently, while keeping key technical talent and key management talent, which we were thrilled to get. And so, we like those kind of deals. I think the prices paid were very reasonable. And certainly, they’ve really helped our Company. And so, look, we’re in execution mode at this point. We got a lot of design wins in front of us. We’re executing a 5-nanometer platform. But, we’re always going to keep a look out and certainly very encouraged by the guidance we gave in terms of revenue growth. But also, if you even look at last quarter, it was the cash flow generation of the Company. I think you’re starting to see that the Company has got a tremendous leverage in its operating model and can generate significant free cash flow as we grow, and that certainly sets us up well if we were to find opportunities to go after. But, as you know, we’ve been very-disciplined on this front. Multiples are definitely high at this point. We’ve got a lot going on. So, of course, we’ll look around. But right now, I know myself and the team are plenty busy with executing our current initiatives that we’ve worked really hard to put together. But, we will see. Thank, Srini.

Thank you. And ladies and gentlemen, this concludes today’s conference call. Thank you for participating. And you may now disconnect.