Tilson to Design and Build Nevada's Middle Mile Network for Zayo

Tilson, which specializes in network development and information infrastructure services, has been selected by Zayo, a leading global communications infrastructure provider, to design and build Nevada's Middle Mile Network. This project, spanning more than 800 miles through Reno and Nevada, is funded by a $153 million grant from the National Telecommunications and Information Administration (NTIA), Nevada Department of Transportation (NDoT), and the Nevada Governor's Office of Science, Innovation, and Technology (OSIT). The initiative aims to expand open-access fiber optic network coverage across the state, connecting over 40,000 previously underserved locations.

• Scope: Design and construction of over 800 miles of middle mile network through Reno and Nevada.
• Funding: $153 million grant from NTIA, NDoT, and OSIT.
• Coverage: Connecting over 40,000 previously underserved locations.
• Infrastructure: Fiber optic based broadband along major highways, including I-80 and US-93.
• Goals: Enhance broadband access for rural communities and support economic development in Reno and Las Vegas.
• Start Date: Construction begins in 2025.
• Tilson's Role: Design and deployment, expanding beyond its existing footprint in Las Vegas.

"We are thrilled to see the Nevada Middle Mile Network taking shape, led by the expertise of Zayo and constructed by Tilson," said Brian Mitchell, Director of the Office of Science, Innovation and Technology (OSIT) in Nevada. "OSIT is dedicated to building a statewide open-access middle mile network to enhance connectivity for underserved communities across Nevada. The Nevada Middle Mile network will advance the State's goal of ensuring every Nevadan has access to an affordable and reliable high-speed internet connection."

Nevada Middle Mile Network

https://osit.nv.gov/Broadband/Middle_Mile/

Zayo selected for Nevada's Middle Mile project

Wednesday, June 26, 2024    

The State of Nevada has awarded $153 million grant to Zayo to build, operate, maintain, and commercialize the state’s new Middle Mile Network project. Zayo will construct over 800 miles of the open-access, fiber optic network backed by funding from the National Telecommunications and Information Administration (NTIA) and the Office of Science, Innovation, and Technology (OSIT) to provide robust broadband access to unserved and underserved communities...

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Supermicro's Latest SuperClusters for NVIDIA AI Workflows

Supermicro has unveiled a significant addition to its SuperCluster portfolio, specifically designed for the NVIDIA Omniverse platform, to support high-performance generative AI-enhanced 3D workflows at an enterprise scale. This latest SuperCluster incorporates the newest Supermicro NVIDIA OVX systems, enabling enterprises to seamlessly scale their infrastructure as workloads grow. By broadening its application-optimized AI rack solutions, Supermicro aims to simplify the deployment of scale-out infrastructure for the diverse needs of 3D and AI workloads, catering to professionals across various industries, from product design to industrial digital twins.

The Supermicro NVIDIA OVX systems form the backbone of this new SuperCluster, offering exceptional 3D and generative AI performance. Each system node houses up to 8 of the latest NVIDIA PCIe GPUs, supported by 4x 2700W Titanium Level PSUs in a high-airflow chassis for stability. These systems are fully NVIDIA-certified for Omniverse, ensuring reliability, scalability, and security. With up to four BlueField-3 SuperNICs or four NVIDIA ConnectX-7 NICs per system, enterprises can achieve 400Gb/s network speeds. This robust infrastructure supports the demanding needs of AI and 3D workflows, providing seamless access to virtual GPUs or bare-metal system nodes.

Key Features of the New Supermicro SuperCluster:

• High Performance: Features Supermicro NVIDIA OVX systems with up to 8 NVIDIA PCIe GPUs per node for top-tier 3D and AI performance.

• Scalability: Configurable from a single rack with 4 systems to an enterprise-scale unit with 32 systems in 5 racks.

• Certification: Fully NVIDIA-certified for the Omniverse platform, ensuring high performance, reliability, and security.

• Networking: Equipped with 400Gb/s network speeds through BlueField®-3 SuperNICs or NVIDIA ConnectX®-7 NICs.

• Power: Powered by 4x 2700W Titanium Level PSUs within a high-airflow chassis to maintain stability under high utilization.

• Flexible Deployment: Available in configurations as small as a single rack to scalable units that can be incremented to fit enterprises of any size.

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DOCOMO Launches 6.6Gbps 5G Service using NR-Dual Connectivity

NTT DOCOMO announced the commercial deployment of New Radio-Dual Connectivity (NR-DC) technology, utilizing three frequency bands—Sub-6 (3.7GHz and 4.5GHz bands) and millimeter-wave (28GHz band)—for high-speed transmissions. This advancement allows the simultaneous transmission and reception across multiple frequencies supported by two 5G base stations. Starting August 1, 2024, this technology will offer Japan’s fastest download speeds of up to 6.6Gbps using 5G Standalone (SA) architecture, initially available in select zones within the 5G SA coverage areas in Tokyo and Kanagawa Prefecture, with plans for gradual expansion.

Standalone (SA) mode is an optional 5G service available for certain smartphones and mobile devices under a 5G service contract. The utilization of this service requires a 5G SA subscription, a compatible device, and a SIM card. DOCOMO first launched 5G SA services in December 2021, and since August 2022, has combined Sub-6 frequencies with the millimeter-wave band to achieve download speeds of 4.9Gbps and upload speeds of 1.1Gbps. This new deployment aims to combine both Sub-6 frequencies with the millimeter-wave band for even higher transmission speeds.

Supported Devices and Download Speeds:

• Xperia 1 VI SO-51E: Max. Download Speed - 6.6Gbps, Available from August 1, 2024
• Galaxy S24 Ultra SC-52E: Max. Download Speed - 6.6Gbps, Available from November 2024
• Galaxy Z Fold6 SC-55E: Max. Download Speed - 6.6Gbps, Available from November 2024

Going forward, DOCOMO plans to expand its range of millimeter-wave band-compatible devices and extend service coverage to enhance customer convenience and quality of life.

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Canada's TELUS Sees 6.9% YoY Increase in Subscribers in Q2

TELUS reported consolidated operating revenues and other income of $5.0 billion for Q2 2024, marking a 0.6% increase over the same period last year. This growth was driven by higher service revenue in the TELUS technology solutions (TTech) segment, while the TELUS digital experience segment (TELUS Digital) saw a decline. The TTech segment saw increases in mobile network, residential internet, and security services due to subscriber growth, though these were partially offset by declines in TV and fixed legacy voice services.

President and CEO Darren Entwistle highlighted the company’s robust network infrastructure and its role in driving customer growth. TELUS achieved total customer net additions of 332,000, up 13% year-over-year, with significant gains in mobile phones, connected devices, internet, TV, and security services. The TELUS Digital segment, despite facing macroeconomic challenges, continues to leverage AI solutions to support future growth. TELUS Health also showed solid performance, contributing to the company’s overall growth.

CFO Doug French emphasized TELUS’ strong financial position and strategic focus on efficiency and cost management. The company reported a 5.6% increase in consolidated EBITDA and expanded its margin to 36.1%. TELUS expects continued EBITDA growth and free cash flow expansion, supported by ongoing investments in network infrastructure.

Key Network Infrastructure Metrics:

• Total Telecom Subscriber Connections: 19.5 million, up 6.9% year-over-year

• Mobile Phone Subscribers: Over 9.9 million, up 4.5% year-over-year

• Connected Device Subscribers: Approximately 3.4 million, up 24% year-over-year

• Internet Subscribers: Approximately 2.7 million, up 5.3% year-over-year

• TV Subscribers: Over 1.3 million, with 25,000 net additions in Q2

• Security Subscribers: Approximately 1.1 million, up 8.2% year-over-year

• Residential Voice Subscribers: More than 1.0 million, down 2.9% year-over-year

• Mobile Phone Net Additions: 101,000 in Q2

• Connected Device Net Additions: 161,000 in Q2

• Internet Net Additions: 33,000 in Q2

• TV Net Additions: 25,000 in Q2

• Security Net Additions: 20,000 in Q2

• Residential Voice Net Losses: 8,000 in Q2

• Virtual Care Members: 6.3 million, up 19% year-over-year

• Healthcare Lives Covered: 75.1 million, up 10% year-over-year

• Digital Health Transactions: 163.3 million in Q2, up 6.8% year-over-year

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AMD Reports Strong Q2 with 30% Growth in Data Center Segment

On July 30th, AMD reported a revenue of $5.8 billion, marking a 9% year-over-year increase. The company’s gross margin was 49%, with an operating income of $269 million and a net income of $265 million, resulting in diluted earnings per share of $0.16. On a non-GAAP basis, AMD’s gross margin stood at 53%, with an operating income of $1.3 billion and a net income of $1.1 billion, translating to a diluted earnings per share of $0.69.

The company attributed its robust performance to record Data Center segment revenue, driven by strong demand for Instinct, EPYC, and Ryzen processors. AMD’s AI business also showed significant acceleration, positioning the company for strong revenue growth in the second half of the year. The Data Center segment saw revenue of $2.8 billion, up 115% year-over-year, primarily due to a steep increase in AMD Instinct™ GPU shipments and 4th Gen AMD EPYC™ CPU sales.

Jean Hu, AMD EVP, CFO, and Treasurer, highlighted that the company exceeded the midpoint of its revenue guidance for Q2, driven by strong growth in both the Data Center and Client segments. Additionally, AMD expanded its gross margin and delivered solid earnings growth, while increasing strategic AI investments to build the foundation for future growth.

Key Metrics:

• Revenue: $5.8 billion, up 9% year-over-year and 7% sequentially.

• Gross Profit: $2.9 billion, with a gross margin of 49%, up 17% year-over-year.

• Operating Income: $269 million, a significant increase from $(20) million in Q2 2023.

• Net Income: $265 million, up 881% year-over-year.

Non-GAAP Financial Results:

• Gross Margin: 53%

• Operating Income: $1.3 billion, up 18% year-over-year.

• Net Income: $1.1 billion, up 19% year-over-year.

• Diluted Earnings Per Share: $0.69, up 19% year-over-year.

AMD also provided an optimistic outlook for the third quarter of 2024, expecting revenue to be approximately $6.7 billion, reflecting a year-over-year growth of about 16% and a sequential growth of around 15%.

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AMD President Victor Peng steps down

AMD President Victor Peng has announced his retirement effective August 30, 2024. He will remain on the AMD executive team in an advisory role to support the transition until his retirement date. Peng played a crucial role in integrating and scaling AMD’s embedded business and leading the company’s AI strategy following the acquisition of Xilinx.

• Victor Peng re-joined AMD in 2022 after the acquisition of Xilinx, where he served as president and CEO.
• Under Peng’s leadership, AMD became the top provider of FPGA and adaptive computing solutions.
• Senior Vice President Vamsi Boppana will expand his responsibilities to include the AMD Instinct data center AI accelerator business.
• Senior Vice President and General Manager Salil Raje will continue to lead the AMD embedded business, with both Boppana and Raje reporting to CEO Dr. Lisa Su.

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ATIS and O-RAN ALLIANCE Unite on Open RAN in North America

The Alliance for Telecommunications Industry Solutions (ATIS) and the O-RAN ALLIANCE have announced a new Memorandum of Understanding (MoU) that will enable the transposition of O-RAN ALLIANCE specifications into ATIS standards. This partnership is a significant move towards the broader adoption of Open Radio Access Network (RAN) technology in North America, giving O-RAN specifications the recognition and endorsement of ATIS, an accredited standards body with extensive North American industry representation. This collaboration aims to foster the development of more intelligent, open, virtualized, and globally compliant mobile networks.

Building on a previous MoU that focused on Open RAN security and stakeholder requirements, this agreement highlights ATIS’s dedication to advancing mobile network standards. ATIS President and CEO Susan Miller emphasized the alignment between industry and government sectors on the importance of Open RAN for creating a trusted supplier ecosystem. Similarly, O-RAN ALLIANCE Chair Abdurazak Mudesir welcomed the transposition, noting it ensures technical alignment and supports efforts for a truly open RAN ecosystem.

• MoU Signing: ATIS and O-RAN ALLIANCE agree to transpose O-RAN specifications to ATIS standards.
• Objective: Enhance the adoption of Open RAN in North America.
• ATIS Role: Accredited standards body with a broad membership from the North American industry.
• O-RAN Specifications: Provide a foundation for open, intelligent, virtualized, and interoperable RANs.
• Mutual Goals: Advance the industry towards intelligent, open, and globally compliant mobile networks.
• Previous Collaboration: Builds on prior agreements addressing Open RAN security and requirements.

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#FiberConnect24: Accelerating Fiber Rollouts - Tak Communications' Heather Gold

How can we accelerate the fiber future?

Heather B. Gold, VP, External Affairs from Tak Communications offers three key observations:

- Simplify regulations to make them more understandable for ISPs

- Address match and letter of credit requirements to encourage smaller players to enter the market

- Urge ISPs to carefully choose experienced partners with proven track records in building networks

https://youtu.be/pHZ6AIcoupo

Want to be involved our video series? Contact info@nextgeninfra.io

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MACOM posts 28.3% Revenue Growth, Driven by Portfolio Expansion

MACOM announced its financial results for the fiscal third quarter ending June 28, 2024. The company reported strong growth, driven by its portfolio expansion strategy, which continues to create new business opportunities across Industrial, Defense, Telecom, and Data Center sectors.

Revenue for the third quarter reached $190.5 million, a significant increase of 28.3% compared to the previous year’s third quarter and a 5.1% rise from the prior fiscal quarter. Despite a slight decrease in gross margin to 53.2%, income from operations improved to $19.7 million. Net income also saw a notable rise to $19.9 million, or $0.27 per diluted share.

• Revenue: $190.5 million, up 28.3% year-over-year

• Gross Margin: 53.2%, down from 58.0% year-over-year

• Income from Operations: $19.7 million, or 10.4% of revenue

• Net Income: $19.9 million, or $0.27 per diluted share

• Adjusted Gross Margin: 57.5%

• Adjusted Income from Operations: $45.6 million, or 24.0% of revenue

• Adjusted Net Income: $48.9 million, or $0.66 per diluted share

Looking ahead, MACOM expects fourth-quarter revenue to be between $197 million and $203 million, with an adjusted gross margin of 57% to 59%. Adjusted earnings per diluted share are anticipated to be between $0.70 and $0.76, reflecting the company’s continued focus on financial performance and execution.

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Disappointing Q2 Drives Intel to Cut Workforce by 15% and Restructure

Intel reported disappointing financial results for the second quarter of 2024, prompting the tech giant to announce comprehensive job cuts and restructuring measures. The company revealed a 1% year-over-year decline in revenue to $12.8 billion, alongside a GAAP loss per share of $0.38. Non-GAAP earnings per share were reported at $0.02. The lackluster performance has led to a decision to implement a more than 15% reduction in headcount to resize and refocus the company.

Restructuring Efforts

Intel’s restructuring plan includes several key elements aimed at creating a sustainable financial engine that will support long-term growth and innovation. The company has outlined a structural and operating realignment across its divisions, targeting more than $10 billion in operating expense and capital expenditure reductions by 2025. Key priorities of the plan include:

1. Reducing Operating Expenses: Streamlining operations with a significant cut in R&D and marketing, general and administrative expenses, aiming for $20 billion in 2024 and $17.5 billion in 2025.
2. Reducing Capital Expenditures: Aligning capital investments with market requirements, projecting a 20% reduction in gross capital expenditures for 2024, targeting $25-$27 billion.
3. Reducing Cost of Sales: Generating $1 billion in savings in non-variable cost of sales by 2025.
4. Maintaining Core Investments: Continuing to invest in long-term innovation and technology leadership, with a focus on building a resilient semiconductor supply chain.

Additionally, Intel has decided to suspend its dividend starting in the fourth quarter of 2024 to prioritize liquidity and support strategic investments. Despite this, the company remains committed to reinstating a competitive dividend as cash flows improve.

Q2 2024 Financial Performance by Business Unit

• Client Computing Group (CCG): Revenue of $7.4 billion, up 9% year-over-year.
• Data Center and AI (DCAI): Revenue of $3.0 billion, down 3% year-over-year.
• Network and Edge (NEX): Revenue of $1.3 billion, down 1% year-over-year.
• Total Intel Products Revenue: $11.8 billion, up 4% year-over-year.
• Intel Foundry: Revenue of $4.3 billion, up 4% year-over-year.
• Altera: Revenue of $361 million, down 57% year-over-year.
• Mobileye: Revenue of $440 million, down 3% year-over-year.

Q2 2024 Financial Highlights

• Revenue: $12.8 billion, down 1% YoY.
• GAAP EPS: $(0.38); Non-GAAP EPS: $0.02.
• Forecast for Q3 2024: Revenue between $12.5 billion to $13.5 billion; GAAP EPS: $(0.24); Non-GAAP EPS: $(0.03).

Key Points:

• Second-quarter revenue of $12.8 billion, down 1% YoY.
• Second-quarter GAAP earnings (loss) per share (EPS) attributable to Intel was $(0.38); non-GAAP EPS attributable to Intel was $0.02.
• Forecasting third-quarter 2024 revenue of $12.5 billion to $13.5 billion; expecting third-quarter GAAP EPS attributable to Intel of $(0.24); non-GAAP EPS attributable to Intel of $(0.03).
• Implementing comprehensive reduction in spending, including a more than 15% headcount reduction, to resize and refocus.
• Suspending dividend starting in the fourth quarter of 2024. The company reiterates its long-term commitment to a competitive dividend as cash flows improve to sustainably higher levels.
• Achieved key milestones on Intel 18A with the 1.0 Process Design Kit (PDK) released and key power-on of first client and server products on Intel 18A, Panther Lake and Clearwater Forest.

Intel CEO Pat Gelsinger and CFO David Zinsner’s Statements

Intel CEO Pat Gelsinger emphasized the company’s commitment to improving operational efficiency and accelerating its IDM 2.0 transformation despite the disappointing Q2 results. CFO David Zinsner highlighted the steps being taken to strengthen Intel’s financial position through spending reductions and strategic investments.

“Our Q2 financial performance was disappointing, even as we hit key product and process technology milestones. Second-half trends are more challenging than we previously expected, and we are leveraging our new operating model to take decisive actions that will improve operating and capital efficiencies while accelerating our IDM 2.0 transformation,” said Pat Gelsinger, Intel CEO. “These actions, combined with the launch of Intel 18A next year to regain process technology leadership, will strengthen our position in the market, improve our profitability and create shareholder value.”

“Second-quarter results were impacted by gross margin headwinds from the accelerated ramp of our AI PC product, higher than typical charges related to non-core businesses and the impact from unused capacity,” said David Zinsner, Intel CFO. “By implementing our spending reductions, we are taking proactive steps to improve our profits and strengthen our balance sheet. We expect these actions to meaningfully improve liquidity and reduce our debt balance while enabling us to make the right investments to drive long-term value for shareholders.”

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Fiber Connect 2024: Panel Discussion on Federal Broadband Policy

At the Fiber Connect 2024 conference in Nashville, TN, telecom industry leaders gathered to discuss the implementation of the $42 billion Broadband Equity, Access and Deployment (BEAD) program. The panel, featuring executives from AT&T, Lumen Technologies, Altice USA, and C Spire, highlighted both the opportunities and challenges presented by this unprecedented federal investment in broadband infrastructure.

Participants

Rhonda Johnson, Executive Vice President of Federal Regulatory Relations, AT&T

Melissa Mann, Senior Vice President of Public Policy and Government Affairs, Lumen Technologies

Christina Chou, Vice President of Federal Affairs, Altice USA

Chris Champion, Vice President of Government Relations, C Spire

Moderator: Marissa Mitrovich, Vice President of Public Policy, Fiber Broadband Association

Key takeaways from the discussion include:

Economic Challenges: Panelists emphasized that BEAD-targeted areas are inherently difficult to serve economically. They stressed the importance of ensuring that program requirements and pricing structures are grounded in the actual costs of serving these communities.

Regulatory Complexity: Each state has different criteria for BEAD implementation, creating a complex landscape for providers operating across multiple states. Companies are dedicating significant resources to evaluating each state's program.

Compliance Burden: The BEAD program introduces new compliance requirements, including procurement rules and long-term reporting obligations. This creates additional operational complexity for providers.

Affordable Connectivity Program (ACP) Concerns: With the recent end of the ACP, providers expressed concern about maintaining affordable access for low-income customers. They called for a long-term, sustainable funding solution for broadband affordability programs.

Legacy Network Challenges: Panelists highlighted the need to align BEAD goals with existing regulations on legacy copper networks. They argued that requirements to maintain older technologies divert resources from fiber deployments.

Fiber First Strategy: While acknowledging the role of other technologies, most panelists emphasized a fiber-first approach in their deployment strategies, citing its superior performance and future-proof nature.

Coordination with State and Local Authorities: Executives stressed the importance of early and frequent communication with state broadband offices and local authorities to address permitting, right-of-way, and other deployment challenges.

Education on Fiber Benefits: While progress has been made, panelists noted the ongoing need to educate policymakers and the public about the benefits of fiber broadband across various sectors, including healthcare and education.

The panel concluded by urging state broadband offices to maintain flexibility, transparency, and a long-term view as BEAD funding begins to flow. They emphasized that while securing funding is a milestone, the real work of expanding broadband access is just beginning.

Special thanks to Doug Mohney for gathering material for this summary.

https://fiberconnect2024.eventscribe.net/agenda.asp?startdate=7/31/2024&enddate=7/31/2024&BCFO=EXT|G|M|P&pfp=FullAgenda&mode=&fa=&fb=&fc=&fd=

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Telefónica Reports Steady Growth and Strong Financial Performance in H1 2024

Telefónica has released its financial results for the first half of 2024, showcasing solid revenue growth, improved profitability, and significant progress on strategic initiatives. The telecommunications giant reported a net income of €979 million, marking a 28.9% increase compared to the same period last year. Telefónica’s performance aligns with its GPS strategic plan, emphasizing growth, profitability, and sustainability.

Revenue for the second quarter grew by 1.2% to €10,255 million, while the first half saw a 1.1% increase to €20,395 million. Operating income before depreciation and amortization (EBITDA) also showed positive trends, rising by 1.8% in Q2 to €3,219 million and by 1.9% in the first half to €6,424 million. The company has reaffirmed its financial targets for 2024, projecting revenue growth of around 1%, EBITDA and operating cash flow growth between 1% and 2%, and a CapEx over revenue ratio of up to 13%.

Key Points:

• Revenue Growth: Increased by 1.2% in Q2 to €10,255 million and by 1.1% in H1 to €20,395 million.

• EBITDA: Grew by 1.8% in Q2 to €3,219 million and by 1.9% in H1 to €6,424 million.

• Financial Targets for 2024:

• Revenue growth of around 1%.

• EBITDA and operating cash flow growth between 1% and 2%.

• CapEx over revenue ratio up to 13%.

• Free cash flow increase of more than 10%.

• Shareholder Remuneration: Confirmed dividend of €0.30 per share, payable in two tranches of €0.15 each in December 2024 and June 2025.

• CapEx: €2,299 million in the first half, down 3.9% from the same period in 2023, maintaining an investment-to-revenue ratio of 11.3%.

• Customer Base: Reached 392 million, a 2.2% year-over-year increase, with significant growth in fiber accesses (+12.1%) and mobile contract customers (+3.3%).

• 5G Expansion: Spain achieved 89% population coverage, Germany 96%, Brazil 50%, and the UK 65%. 5G Stand Alone has been commercially launched in the four major markets.

• Sustainability: Telefónica named one of the Top 10 World’s Most Sustainable Companies by TIME magazine and ranked as a sector leader in the FTSE4Good Index Series.

https://www.telefonica.com/en/communication-room/press-room/telefonica-earns-979-million-euros-june-29-confirms-financial-targets-2024/

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Qualcomm Reports Strong Q3, Highlights Diversification and AI

Qualcomm reported robust financial results for the third quarter of fiscal 2024, with non-GAAP revenues of $9.4 billion and earnings per share of $2.33, surpassing the midpoint of the company’s guidance range. The earnings call, held on July 31, 2024, emphasized Qualcomm’s successful diversification strategy and significant strides in automotive and AI sectors.

Key Financial Highlights:

• Revenue: $9.4 billion, non-GAAP, up 2% sequentially.

• Earnings Per Share (EPS): $2.33 non-GAAP.

• Chipset Business Revenue: $8.1 billion, driven by growth in automotive and IoT sectors.

• Licensing Business Revenue: $1.3 billion.

Strategic Focus and Diversification Efforts:

CEO Cristiano Amon outlined Qualcomm’s ongoing diversification efforts beyond its traditional handset business. The company reported strong growth in its automotive and IoT segments, attributing this success to strategic design wins and the expanding adoption of Snapdragon platforms.

• Automotive Sector: Qualcomm secured over 10 new design wins with global automakers, expanding the presence of its Snapdragon Digital Chassis across next-generation digital cockpit, connectivity, and ADAS/autonomy solutions.

• IoT Sector: The company’s IoT revenues increased by 9% sequentially, reaching $1.4 billion. This growth reflects a gradual recovery in the industry environment and Qualcomm’s leadership in industrial IoT applications.

Q3 Results by Business Unit:

• Client Computing Group (CCG): $7.4 billion, up 9% year-over-year, driven by premium Android handsets and Chinese OEM growth.

• Data Center and AI (DCAI): $3.0 billion, down 3% year-over-year, reflecting ongoing challenges but steady performance.

• Network and Edge (NEX): $1.3 billion, down 1% year-over-year.

• Automotive Revenues: Achieved a record $811 million, up 34% sequentially.

• Licensing Business (QTL): $1.3 billion in revenue, with an EBT margin of 70%.

Future Outlook:

Looking ahead to the fourth quarter of fiscal 2024, Qualcomm provided optimistic guidance:

• Revenue Forecast: $9.5 billion to $10.3 billion.

• Non-GAAP EPS: $2.45 to $2.65.

• QTL Revenues: Estimated between $1.35 billion and $1.55 billion.

• QCT Revenues: Expected to be between $8.1 billion and $8.7 billion, with a focus on IoT and automotive growth.

Key Points from the Earnings Call:

• Strong Q3 Performance: Revenue of $9.4 billion, up 2% sequentially.

• EPS: Non-GAAP EPS of $2.33.

• Q4 Revenue Forecast: $9.5 billion to $10.3 billion.

• Q4 EPS Forecast: Non-GAAP EPS of $2.45 to $2.65.

• Automotive Design Wins: More than 10 new design wins with global automakers.

• AI and PC Growth: Positive momentum in AI-driven devices and the successful launch of Copilot+ PCs.

• Industrial IoT Collaboration: New partnership with Aramco for industrial and enterprise use cases.

• Licensing Agreement: Long-term agreement signed with Honor, a leading Chinese smartphone OEM.

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Amazon’s Q2: AWS Shines with Robust Growth

Amazon.com reported Q2 net sales of $148.0 billion, marking a 10% increase compared to $134.4 billion in the second quarter of 2023. This growth includes a $1.0 billion unfavorable impact from year-over-year changes in foreign exchange rates, which translates to an 11% increase in net sales excluding these changes.

A significant highlight from the report is the performance of Amazon Web Services (AWS), which continues to demonstrate strong growth and strategic importance.

• AWS Sales Growth: AWS reported a 19% year-over-year increase in sales, reaching $26.3 billion.
• Operating Income Surge: AWS operating income rose dramatically to $9.3 billion from $5.4 billion in the same quarter last year, underscoring its profitability.

Key Developments in AWS:

• Generative AI Capabilities: AWS expanded its AI offerings, including services like SageMaker for model builders, Bedrock for leveraging frontier models, Trainium for cost-efficient training and inference, and Q, a GenAI assistant for coding and software development.
• New Product Launches: Introduced AWS Graviton4-based compute instances, which provide up to 30% better price-performance than the previous Graviton3 instances.
• Strategic Partnerships: AWS secured new agreements with prominent companies, including Commonwealth Bank of Australia, Databricks, Discover Financial Services, Eli Lilly and Company, Experian, GE HealthCare, NetApp, Scopely, ServiceNow, Shutterfly, and AI startups like Perplexity, H Company, and Observea.
• Global Expansion: Announced a strategic AUD $2 billion partnership with the Australian Government to provide a “Top Secret” AWS Cloud, enhancing the nation’s defense and intelligence capabilities.
• Autonomous Vehicle Testing: Expanded the deployment of the self-driving robotaxi Zoox to public roads in Austin and Miami.

Financial Outlook:

• Q3 Revenue Guidance: Amazon expects net sales for the third quarter of 2024 to be between $154.0 billion and $158.5 billion, representing growth of 8% to 11% compared to the third quarter of 2023.
• Operating Income Guidance: Anticipated operating income for Q3 2024 is expected to be between $11.5 billion and $15.0 billion.

“We’re continuing to make progress on a number of dimensions, but perhaps none more so than the continued reacceleration in AWS growth,” said Andy Jassy, Amazon President & CEO. “As companies modernize their infrastructure and move to the cloud, while also leveraging new Generative AI opportunities, AWS remains customers’ top choice.”

Key Financial Metrics for Q2 2024:

• Total Net Sales: $148.0 billion, up 10% year-over-year.
• Operating Income: Increased to $14.7 billion from $7.7 billion in Q2 2023.
• Net Income: Rose to $13.5 billion, or $1.26 per diluted share, compared to $6.7 billion, or $0.65 per diluted share, in Q2 2023.
• Operating Cash Flow: Increased 75% to $108.0 billion for the trailing twelve months.
• Free Cash Flow: Increased to $53.0 billion for the trailing twelve months.

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