| | | A couple of excerpts from Broadcom's CC (they agree with everyone else that the second half of the year will be stronger and that Q2 will be the bottom)
from Hock Tan's opening remarks:
Many of our peers have commented that they are seeing a softening demand environment, especially out of China. While we are experiencing the same demand dynamics, we have factored in much of this macroeconomic backdrop when we provided fiscal 2019 guidance last quarter.
As a result, after a solid start to the year, we are reaffirming our fiscal 2019 revenue guidance of $24.5 billion. Having said that, we expect our semiconductor business to bottom in the second fiscal quarter, driven almost entirely by the seasonal drop in wireless.
But looking to the second half, we are confident that semiconductor business will resume very meaningful growth. This will be driven by strong product cycles in both wireless and networking, coupled with a recovery in broadband.
Q&A:
Aaron Rakers
Yeah. Thanks for taking the question, and also congratulations on the quarter. A lot of questions on wired and wireless has been asked, but I wanted to ask about the storage business. The storage business, I think you mentioned, was up. I don't know if you've framed how much in this quarter. But I'm curious and kind of similar questions as prior, what kind of things are we to be focused on in that piece of the business over the next couple of quarters? And how do you assume that can go through the course of this year? Thank you.
Hock Tan
Okay. Well, very good interesting question. In storage, we have a mixed bag here. A bag -- a lot of it not all of it, but a lot of it relates to hard disk drive. And as you know hard disk drive is nothing to yell over these days and we see that no different from the others. Our mitigating factor here is that most of our hard disk drives, in fact all our hard disk drive component sales goes to near-line or basically in data centers. We don't do -- we do relatively less in PC desktops or mobile. So, we do see the impact of it being weak, but not as extreme as obviously the industry is saying. So, that helps mitigate it, but that's not a growth area.
Where we see a hopefully embedded new product cycle coming in is the fact that type two storage is -- especially on Flash SSDs is PCI Express. Second half of the year, we see pushing -- a strong push in the marketplace on PCI Express Gen 4. We're in the lead of it and we see a lot of interesting opportunities related to that, be it in storage or even be it in resulting the amounts are in offload computing, from viewpoint of machine learning, GPU-to-GPU connectivity. But it's also related to storage and that push something you said where is Gen 4 is what's quite interesting in storage over the next -- over the next -- well, actually over the rest of this year, especially the second half. All right?
seekingalpha.com |
|
