Good day, everyone, and welcome to the Microchip Technology Fourth Quarter and Fiscal Year 2013 Earnings Results Conference Call. As a reminder, today's call is being recorded. At this time, I would like to turn the conference over to Microchip's Chief Financial Officer, Mr. Eric Bjornholt. Please go ahead, sir.

Good afternoon, everyone. During the course of this conference call, we will be making projections and other forward-looking statements regarding future events or the future financial performance of the company. We wish to caution you that such statements are predictions, and that actual events or results may differ materially. We refer you to our press release of today, as well as our recent filings with the SEC that identify important risk factors that may impact Microchip's business and results of operation. In attendance with me today are Steve Sanghi, Microchip's President and CEO; Ganesh Moorthy, Microchip's COO. I will comment on our fourth quarter and full fiscal year 2013 financial performance, and Steve and Ganesh will then give their comments on the results, discuss the current business environment and discuss our guidance. We will then be available to respond to specific investor and analyst questions. I want to remind you that we are including information in our press release and this conference call on various GAAP and non-GAAP measures. We have posted a full GAAP to non-GAAP reconciliation on the Investor Relations page of our website at www.microchip.com, which we believe you will find useful when comparing GAAP and non-GAAP results. I will now go through some of the operating results, including net sales, gross margin and operating expenses. I will be referring to these results on a non-GAAP basis prior to the effects of our acquisition activities and share-based compensation. Net sales in the March quarter were a record $430.1 million and were up 3.4% sequentially from net sales of $416 million in the immediately preceding quarter. Revenue by product line was $275.8 million for microcontrollers, $97.2 million for analog, $32.8 million for memory, $22.1 million for licensing and $2.3 million of other. Revenue by geography was $84.7 million…

Thank you, Eric, and good afternoon, everyone. Let's now take a closer look at the performance of our product lines in the March quarter, starting with microcontrollers. Our microcontroller revenue grew 3.7% sequentially in the March quarter to achieve an all-time record of $275.8 million in revenue. Microcontroller revenue was also up 20.5% versus the year ago quarter. And for fiscal year '13, our microcontroller business was up 12.4% as compared to fiscal year '12. Microcontrollers represented 64.1% of Microchip's overall revenue in the March quarter. And by the way, in April, we also shipped our 12 billionth cumulative microcontroller. Our 16-bit microcontroller business was up 7.7% sequentially in the March quarter, achieving a new record for revenue. 16-bit microcontroller revenue was also up 93% versus the year-ago quarter. And for fiscal year '13, our 16-bit microcontroller business was up 74% as compared to fiscal year '12. Fiscal year '13 also marks the eighth consecutive year of revenue growth and new revenue records for our 16-bit microcontroller business. We continue to expand the breadth of innovative 16-bit solutions that we are offering and customers that we are serving as we continue to gain market share in this segment. Our 32-bit microcontroller business took a pause after 3 consecutive quarters of strong double-digit growth and was down 16.6% sequentially in the March quarter, although it was up 527% over the year ago quarter. For fiscal year '13, our 32-bit business was up 475% as compared to fiscal year '12. And fiscal year '13 also marks the fourth consecutive year of revenue growth and new revenue records for our 32-bit microcontroller business. We are continuing to win new designs and expanding into new applications to enable further growth in revenue and market share. Gartner Dataquest has released their microcontroller market share report…

Thank you, Ganesh, and good afternoon, everyone. Today, I would like to first comment on the results of the fiscal fourth quarter of 2013, then I will provide guidance for the fiscal first quarter of 2014. We were very pleased with our execution in the March quarter. In our last conference call, we told you that the December quarter was going to be our bottom quarter for this cycle, and we will see growth in the March quarter. We have more than delivered on that guidance. Our net sales were higher than the mid-point of our guidance. We managed the operating expenses extremely well, with operating expense percentage coming in 115 basis points below the mid-point and well below the low end of our guidance. All other financial metrics, like gross margin percentage, operating profit percentage and non-GAAP earnings per share, all exceeded the high end of our guidance. We beat the mid-point of the guidance on earnings per share by $0.05. I want to thank all the employees of Microchip, including the new employees from SMSC, for their contribution in making this an excellent quarter. We made several new all-time records in the quarter. Our total net sales were a new record. And our total microcontroller, as well as analog net sales achieved all-time new records. Individually, 16-bit microcontrollers also achieved a new all-time record. There's no doubt that Microchip has continued to gain market share in the microcontrollers, as well as analog. I had a chance to compare Microchip's microcontroller results with the SIA data for the March 2013 that was just released. We are pleased that Microchip continued to gain market share in microcontrollers. For March 2013 quarter, our total microcontroller revenue was $275.8 million. Our overall microcontroller market share increased from 7.6% in March 2012 quarter…

[Operator Instructions] We'll take our first question from Chris Caso with Susquehanna Financial Group.

Steve, just maybe to start, and given your vantage point in the industry and number of your customers you touch, I think you guys are in good position to answer this. And there's obviously a concern, and it's not just Microchip, it's the whole industry and really, the whole market because of the downturn that happened in the second half of the last 2 years. Because -- I guess, based on what you're seeing now, maybe you could help us by maybe comparing what you're seeing now in terms of the customer orders, the activity to the last 2 years and maybe talk about what you see different this year than perhaps over the last 2 years?

Well, if I could refer to one report I was reading, I don't want to name the report. But I was reading an analyst report from investment analyst, where I read that for my personal investment. It said, in the last 2 years, in both years, Fed drew the stimulus out of the market right around the April timeframe. And last year, the QE2 ended and then they started it again in September or so with QE3. And the year before also, the housing and a bunch of other stimulus ended. And this report at least pointed a significant finger towards really the reduction of that stimulus, which then resulted into a weakening of the market in the second half. And actually, the GDP was already slowing down. This year, as you look at it in the U.S. market at least, the GDP is actually up from the prior quarter. It's accelerating. And there is no sign at least today of any kind of stimulus to be withdrawn. So that's not my analysis. I'm just reading the analysis from a different report. Now as we see from our own data, the bookings are very strong. They were very strong in the last quarter. We mentioned this at the last conference call also. And as we continue, finished the month of April, it was very, very strong. So currently, there is no sign that this thing will really follow the pattern it followed in the last 2 years.

Okay, sure. Just as a follow-up to that. Maybe you can comment a bit about -- it sounds like you're getting some longer-dated bookings now and some customers booking into the calendar third quarter. Does that imply that your own lead times are starting to expand? What's the incentive for your customers to start booking a little farther out right now?

So you pretty much said it. So one change that has happened in the Microchip business over the years is today, 40% of our business comes from wafers made in the foundry. And this is a result of 2 acquisitions and Microchip's own strategy of really significant number of products that we are sourcing from outside. 100% of SMSC's products are bought from foundries. 100% of SST, Silicon Storage Technology products are bought from outside. And many of Microchip products over the years were, rather than adding expensive equipment inside, we have gone outside. So that change in the mix shift has really added the complexity where today, our lead times are anywhere from 2 weeks to 16 weeks depending on the product. And we make 60,000 different product types. So if you ask me, what's your lead time? There isn't really one number. It is anywhere from 2 weeks to 16 weeks-plus. There are products which are in stock, and you can take immediate delivery. And there are other products, so you will be in line if you ordered them in less than 16 weeks. So yes, we're getting orders out in time for products that have longer lead time. And anytime that happens, there is a drag effect on the other products. Even those products which are available on a much shorter term basis, customer just reads it as, those may go longer lead time also or they place a bulk order in a kit fashion for the outer months. And you tend to get bookings on all different products out in time.

Just to clarify -- was -- if I look at it versus the second half of last year, was there any meaningful change in the lead times across your portfolio from the second half of last year?

Yes, very, very meaningful change, yes. Obviously, SMSC was acquired in the second half. It was acquired on August 2. So all that impact was since then. And many of our internal products, they have ramped significantly. They were much newer products last year, contributed much smaller portion to our volume. And 1 year later, they are in significantly high volume position.

We'll take our next question from Sumit Dhanda from ISI Group.

Just a couple of questions. The SG&A performance, you came in below the low end of expectations. Could you help us understand what exactly drove that performance?

Go ahead.

It's really just great expense control across the board. We've indicated that -- how we share information with our employee base about the state of the industry and expense control. And I'd say, all employees across the company really stepped up and helped us deliver much better performance in the operating expense area. So not much else I can share outside of that other than it was a collective effort of the entire Microchip team.

When employees are on a pay cut and fab employees are on a rotating time off, there's a culture where everyone thinks it's their money. If you spend some money on something superfluous or just want a new computer while the old one still works, you're really spending your own money because the bonuses and pay cut reversal and RTOs and all that depend on the performance. So it's really one of the best cultures, and it creates employees to then really go out of their way in watching expenses and making it an efficient OpEx operation.

Got you. And then, just following up on the, on your commentary around lead times. How do we reconcile the fact that your own internally produced inventory is at a reasonably high level, but your lead times are still expanding? In other words, is the mix so out of kilter with how the demand requests are coming in? Or help us understand what the disconnect might be.

So a lot of the longer lead times are not from in-house produced products. A lot of the longer lead times are from foundry products. But a lot of the in-house produced products, we were holding all the inventory in the die stores, where we have really, in the last many quarters, cut back on the production in assembly and test to not really add further value when the inventories were quite high. And as the demand has come very, very strong, we have to move that die through assembly and test. And that's where some of the challenges are in acquiring new capacity, new handlers, new testers and other stuff. And the third piece is on a good number of -- select number of products. The demand has exploded and the products are built inside, but the inventory on those new products were not very high and the demand has exploded, so we're expediting them even inside the factories.

Right. So just to add on to that real quickly. I want to really emphasize the point that Steve made earlier about 40% of our products being from outside foundries. And lead times from our foundry partners have extended also. So that has compounded this. And we've taken appropriate steps to build that inventory back up in the June quarter. And you can see that in our guidance for inventory. Even though the internal inventory is coming down, the foundry product will go up and allow us to have competitive lead times.

So the mix is not out of kilter. If the mix was out of kilter, then we would be writing off inventory because lots of products will have inventory write-downs while the other products are short. So the mix is really not out of kilter. It's -- anytime when large surge in demand happens, lots of new designs take off. And on those new designs, you couldn't predict how much customer is going to buy because they're newer designs and they were in incubation. And many of those are 32-bit microcontrollers and many of them are dsPIC and 16-bit microcontrollers. That's where the demand has exploded.

We'll go next to Jim Schneider from Goldman Sachs.

This is Gabriela Borges on behalf of Jim. I was hoping you could give us a little detail on the puts and takes to gross margin guidance in the quarter? How should we be thinking about utilization versus last quarter given more modest inventory reductions and are there any impacts from mix shift or other factors that we should also be thinking about?

So there's many factors that influence gross margin, including the mix of revenue from our various product lines, fixed cost absorption, factory loading levels, inventory reserves and just general competitive and economic conditions. So after considering those various gross margin factors for the June quarter, we're guiding non-GAAP gross margins to be up to 56.5% to 57%. As our inventory position gets rightsized, we can increase our factory output, which will help us improve our gross margins, and we will see some margin improvement from SMSC over time. So our long-term margin stays intact at 60%, plus or minus 0.5%, and we will get back to those levels as we increase utilization over time.

That's very helpful. And then as follow-up, if I could. I was hoping you could talk about growth drivers in the 16-bit MCU portfolio given the strong result in the quarter and over the last year. How should we be thinking of the growth profile of this business going forward? And are there any particular applications you're targeting for shagging?

Ganesh, you can take that one.

There are a broad suite of applications in which we're designed in that are continuing to grow. We're getting multiple designs in these applications with these customers. It's too broad of a range to be able to pick any one item to say that's what's driving all the growth. And I think that the strength of the business is, it is not dependent on any one application or any one customer for its growth. It's pretty broad-based.

[Operator Instructions] We'll take our next question from Steven Eliscu from UBS.

Just had a question on your 32-bit PIC. I mean, we've focused a lot in the past that the fact you're not using ARM and how it could keep you out of bidding on certain deals. I'd like to turn that around and get your opinion on how when you are included on a deal, how it -- the fact that you have a microcontroller that potentially has advantages versus an ARM core. How that's resulting in what may be less competition than what some of your peers are seeing and how it could also be resulting in better pricing resiliency as we see in 32-bit pricing based on the SIA data come down significantly over the past year.

Ganesh?

We never sell, based on ARM versus MIPS or everything else on the core. We're going in to customers to understand needs or identifying alternatives, and we propose solutions that are PIC microcontroller-based solutions. That includes the product, includes the development tools, includes the roadmap, includes our software, includes our support. What a customer buys is our ability to solve their needs for today and for tomorrow. And the talk of an ARM core versus a MIPS core versus some other core never comes up.

So you're saying you're winning because of all those attributes that you just said?

Yes, there are 10, 15 different attributes that are important to the customer. There may be a few for whom the core may be important, but there's a lot more for whom their success is what's important.

That's helpful. And then, on the SMSC integration, a couple part question. First of all, just trying to understand why the accretion is higher than you originally expected. Is this just based on better IT integration and rationalization at the back end? Or was there more to it in terms of being able to fix some of the product groups and product areas that you didn't necessarily see upfront? And as a second part, now that also you've honed this M&A process with the last 2 acquisitions and you've essentially said the SMSC integration is complete, are you now ready sooner perhaps to do your next major acquisition?

So the first part of your question regarding the SMSC accretion, I think we have revised these numbers up at least 2 or 3x now. Basically, the execution has been much better than any sand we had left in there. When you first make the estimates, you are largely making the estimate from looking from outside. And first estimate was actually based on the day we completed the acquisition. So as you get in there, as we got in there, we found significant more fat, a significant more areas of efficiency, where Microchip processes, business processes applied related into a significant -- more efficiencies. So the gross margin is significantly higher than we originally imagined. Operating expenses are much lower than we originally imagined. Therefore, the operating profit overall is much higher at lower revenue. So we had expected higher revenue before. So despite lower revenue, mainly because of the computing market, which has been really weak, despite the lower revenue, all other metrics have improved. And a lot of the internal metrics we have regarding revenue per employee to operating expenses, about anything to gross margins, to operating profit per employee, and various other indicators of rank of managers and VPs and directors and others, all these internal indicators are all turning green from bright red when we started. So I can't quite give you a pictorial view of that. Some of the data is confidential on it. But I have a very good chart on how -- where they indicators were, where we started and quarter-after-quarter, month-after-month, how many of these indicators have turned green.

And on the second part of the question?

So the second part of your question is the SMSC acquisition is complete. Are we ready for another major acquisition? We have been ready well before even the acquisition was complete because it's different people executing it versus the people who are finding and doing the analysis. Although, if you know one that's ready and wants to do the deal, let me know, I don't have one.

We'll take our next question from Harsh Kumar from Stephens.

Steve, I had a question on 8-bit. We're starting to hear U.S. markets, emerging markets, the end demand recovering. In your opinion, do you think it's possible for Microchip to take further share in the 8-bit market, particularly as Renesas and some of the other guys sort of flounder around in profitability?

Well, I mean, yes, I mean, our 8-bit share is increasing rapidly. Our 8-bit share is up based on SIA data substantially over Q1 last year. It grew every quarter last year. It's up substantially over Q4. Some of the people that have broken their numbers out, including one we just heard yesterday, their 8-bit was down substantially. Sequentially, Microchip's 8-bit was up sequentially from December to March. So our 8-bit is doing very, very well. Don't think negative about 8-bit. 8-bit is resilient, doing very well, we're gaining tremendous share. It has very high gross margins. It's a tremendous contributor to profitability.

Got it. And then, as again, things get better listening to your commentary, a question on CapEx. What are the puts and takes that you guys think about in deciding whether to go outside to a foundry versus going internal? Does it come down at the end to technology? Or is it a total cost proposition?

Well, it's basically, at the end it's a cost of ownership proposition. But a couple of factors that go into that. One, we develop technologies around those business plans that are fairly large business plans, which means we will develop the mainline technologies on which we will do a lot of business. But as the company gets larger, you have a lot of small business plans. We need a little DMOS. We need a little bipolar. We need a little something else. I need a little high voltage. I need something else. So when you start to develop all these versions of technologies for all these splinter groups and small acquisitions and all those in the company, those are not cost-effective necessarily always to develop them inside. So we pretty much go find a foundry who is doing those technologies and we get those. And the second piece is, when you really go deep into lithography, where the equipment becomes very, very expensive into 12-inch wafers, then we are going predominantly outside. Microchip's both fabs are 8-inch, and they will remain 8-inch. So when we really need very deep lithography that's only available on 12-inch, we're going outside.

We'll go next to Gil Alexandre from Darphil Associates.

Two questions, if I may ask. Is this BodyCom technology important or it takes a few years?

Ganesh?

So BodyCom is a new innovation. We are working with a set of customers to get it adopted and implemented in production. But like most embedded solutions, they take time to be adopted, to be designed and to go to production. So don't expect an instantaneous spike in revenue from BodyCom. It will take time, but it will be like many of our solutions we brought over the years. Where we bring them to market, help customers be successful and ramp the volume.

Steve, you've been very good at making economic projections. Can you give us a reading as to degree of slowdown in the Chinese economy?

Well, I don't know if I can claim expertise on the Chinese economy. I read the same data that you read. I have a little more view from our own business standpoint or embedded control regarding what's happening. And the quarter for China was slow, driven by just the weak economy, Chinese New Year, which is always a down quarter, and the change of government, 10 year, a decade change. Every decade the government changes there, which has recently come in. Now what they are talking about are really a new round of stimulus and really trying to accelerate the economy somewhat. And when China does that, a fair amount of money often goes into the hardware goods where our products are. A lot of it goes into appliances, household appliances, TVs, automobiles and other stuff, which really has a lot of Microchip consumption. So if anything like that happens, which looks like its likely to happen, then we will be significant beneficiary.

We'll take our next question from Williams Stein with SunTrust.

Can you talk about your internal utilization now? I think it's in the high 50s on the front end. Is that right? And perhaps you're more constrained in the back end. Can you comment on the differential there?

Yes. We don't break out a specific capacity utilization percentage. We do have plenty of capacity in our factory to support both the short term and long-term requirements of the business. It's just quite a mix today. We talked about earlier about 40% of our business being outsourced in wafer fab. And what we're doing internally coming off the rotating time-off schedules effective July 1. So it's just a lot of moving parts. I can assure you, we have plenty of capacity to grow into internally, though.

That's helpful. And then there's another area of your business where I think you've done some smaller acquisitions and people -- investors, I think don't generally think of Microchip as a company with a strong position in touch and gesture and proximity controls. But I think you've developed some products there lately. Could you talk about the traction you've made there?

Well, I mean, we have a very good touch business. We do business with over 1,000 touch customers in production, always has been. But our business characteristics is such that Microchip defends a very, very broad beachfront. We're not a touch company. We're not a motor control company. We're not a computing company. We're not a cell phone company. We participate everywhere with a very, very broad set of characteristics. So therefore, we don't really talk about any single application because there's just too many to talk about. Every once in a while, we throw something out and most people just think, hey, that's our focus. And we have a large portion of the business in that area, which is not true. The difference in touch is, with our touch, we're not pursuing cell phones and pads. Our touch is in automotive. Our touch is in industrial. Our touch is in printers, on touch screens, on various buttons and wheels and stoves and industrial equipment and household equipment. That's where our touch is. Margins are 2x higher than our competition or more. There are smaller volumes in a given design. They're support intensive, but Microchip is structured around being able to provide that. We don't go compete in a 20 million unit design in a cell phone. But we sell well over 20 million units in lots of small, small and mundane applications in the industrial and automotive and consumer world.

We'll take our next question from Christopher Danely from JPMorgan. Shaon Baqui - JP Morgan Chase & Co, Research Division: This is Shaon Baqui calling in for Chris. I want to circle back real quick on a pretty well-publicized letter you guys put out, I think in the first week of February to your customers. Can you talk about what kind of impact that letter had on the order rates throughout the quarter? And maybe talk about the last time you had to issue a similar letter and what it did to order patterns?

Well, the letter is not to create an order pattern. The letter is in response to a order pattern. So for several weeks, prior to the letter, we were getting a large amount of orders and some of the lead times had pushed out, and we talked about lead time earlier in the conversation regarding products made in foundries to some other products which are ramping very hard. So when that starts to happen, the letter is essentially giving all of our other customers a notice because Microchip has a very broad, 80,000 customers, very broad customer base. So it's to give a notice to every other customer and saying, "This is what's happening in our industry. This is what we are seeing. Please make sure that you have your orders in either at your distributor or at Microchip wherever you buy the parts from and take notice that this is happening." And usually, we didn't see any change in the pattern after that. But the pattern continued for quite a while and is continuing. It is possible that without the letter, the whole thing could have softened a little bit. And we know maybe after those customers were placing the order have placed their orders. But then when the other customers will come later on, they wouldn't have the orders in line, and they will go delinquent, their line is down. So it's a notice to the other customers, which then customer after customer then get on the bandwagon and are placing their orders which keeps the momentum rolling for an extended period of time, which is really what has happened. Shaon Baqui - JP Morgan Chase & Co, Research Division: Okay, that's helpful. And this is a quick follow-up along those same lines. Can you talk about where your lead times are today versus the beginning of the year and when do you plan on bringing those down?

I don't know whether you were on the call earlier on or you just signed in. But we talked quite a bit about the lead times. Microchip's lead times are anywhere from 2 weeks to 16 weeks-plus. And there's no single number I could give you for lead time. Across the 60,000-plus products we make, the lead time is really product-dependent depending on where the product is made, whether it's made in foundry, whether it's made inside, whether we have die inventory on that product, only have to test it, or we have to start from scratch making wafers. So the lead times are all over the place. Lead times have not changed since the start of this year.

We'll go next to John Pitzer from Credit Suisse. John W. Pitzer - Crédit Suisse AG, Research Division: Steve, in your prepared comments, you gave us a metric that you usually don't give. I think you talked about the back end, perhaps, building units up 11% sequentially in the June quarter. Was the intent there to give us a sense of what you think underlying consumption could be, if you could meet it all? Is it expectation of future growth into September? What was the point of that data point?

The point of that data was that in the prior quarter, we shipped more units than we built. So we were in the inventory depletion mode. And now, with the growth guidance we have given, you have to build more units. Plus, you -- I can't deplete them anymore, inventory is already low in our back end. I have to build more units to grow the inventory, plus I have to make up for the units I depleted last quarter. So it's just to give you a feel for -- ties into lead times also a little bit. We're having to grow the units 11% just to provide the growth we have guided, plus the units we depleted last year, from last quarter from the finished goods, replenish those, plus not deplete anymore and actually build some. And we have given you a range of guidance. So anytime we build, we build so that we can provide more than the middle point of the guidance. John W. Pitzer - Crédit Suisse AG, Research Division: And then, Steve, on the SMSC accretion that you guys have raised a couple of times now, it sounds like a lot of that's coming on the cost side. I'm kind of curious now that we're a few quarters into this, what kind of revenue synergies you might have uncovered? And then, quickly and lastly, just given the yen situation, how do we think about yen relative to your business?

We don't really think much about yen. We don't really buy stuff from Japan. We don't have any factories there. We ship product in Japan, but our pricing to our distributors is in dollars. So our products may become more cost-effective or less cost-effective based on yen. So if the customer has our design versus Renesas' design, they might see that difference, but most of our products that are sold in Japan are all proprietary. So it's not been a major discussion at Microchip when yen changes. John W. Pitzer - Crédit Suisse AG, Research Division: Helpful. And then on the SMSC, the accretion, what kind of revenue synergies have you guys uncovered?

Well, quite a bit. So we're finding that SMSC's USB and Ethernet products and other common products have homes in lots and lots of Microchip sockets where we are shipping our microcontroller, serial and other products. And they were either using somebody else's Ethernet or they can add additional capability by having that connectivity. In addition, lots and lots of USB sockets, where they have large customers, many of them we did not do business with and we're finding that they need a memory or they need an analog or they need a microcontroller. And a lot of these things have design cycles and design cycle for anything these days is about 1 year, 1.5 years. So SMSC acquisition is less than 1-year old. So there is not a lot of retained revenue, although there is some, but there's a lot more coming in future.

And we'll take a follow-up from Harsh Kumar from Stephens.

Following up on that question, Steve, maybe if I remember SMSC had a pretty strong and dynamic automotive line. I know that the time to get in that kind of business is a little bit longer than most. But I was wondering if you could shed some light on how long it may take to see some benefits of cross-selling there on that particular business?

Ganesh, you want to comment on that?

Yes, I mean, I think you're right. SMSC did have a strong automotive product line and a very proprietary one at that. They also had the added advantage of influencing designs at an architectural level with the carmakers and not just working with the Tier 1s that most semiconductor companies work with, but with the Tier 1s customer, end customer who are OEMs. And in that, we're getting insight into how those platforms are evolving over time and how other Microchip solutions can be proposed and included as the early stage design of platforms are taking place. But as you noted, these are long design cycles. You won't see any of it in the next 1, 2, 3 years. It'll take time before they are done, go into production. But slowly but surely as with all of our other embedded models, these are our long-term growth initiatives.

And with no further questions in the phone queue, I would like to turn the call back to Steve Sanghi for any additional or closing remarks.

Well, we just want to thank all the investors and analysts for joining this call. We will see some of you on the road this quarter at some of the shows and conferences and all that. Otherwise, we will talk to you next quarter in another earnings call. Thank you.

This does conclude today's conference. We thank you for your participation.