Synaptics Incorporated (SYNA) Earnings Call Transcript & Summary

Good afternoon, and welcome to Synaptics Investor Day 2023. My name is Munjal Shah, and I'm Head of Investor Relations. We are very glad that all of you are here. We greatly appreciate you coming and meeting us in this -- in person. Also a very well welcome to those who are listening to us online via our webcast. As is customary, our safe harbor statement. In today's presentation and Q&A session, Synaptics management will make forward-looking statements. Please read the safe harbor statement and refer to the 10-Ks and 10-Qs filed with the SEC for the risk factors. Synaptics management doesn't take any obligation to update these statements. Also we'll be using -- we'll be providing some non-GAAP information. For reconciliation to GAAP measures, you can look at the presentation appendix and is also available on our -- on the IR section of the company's website. A couple of things. This morning, we issued a press release reaffirming our September quarter guidance, which we had provided on our earnings release on August 3. A webcast and slides of today's presentation are available on the IR section of the company's website. We will host an executive Q&A session at the end of all presentations. And those who are listening to us online, you can ask a question by submitting it via e-mail to IR at synaptics.com. For the agenda today, our President and CEO, Michael Hurlston, will get us started and provide an update on our growth strategy. He will be followed by our business executives. First, Venkat Kodavati, who runs our wireless products. Then Vikram Gupta, who will provide us an update on our IoT processors. And Saleel will highlight our enterprise workspace products. Michael will give us an update on our automotive products and what we're doing on corporate responsibility. And then finally, our CFO, Dean Butler will recap our financial strategy and provide an updated financial model. With that, I would like to turn it over to Michael, our President and CEO.

Thank you, Munjal. And thanks for everybody who is here in person. I know it's hot in New York. So for those of you that schlepped across town, really appreciate you guys showing up. I think in 4 or so years that this management team has been together, we've seen the stock price go from $30 to -- I don't know what Doug was just saying, we're down pretty much today, but roughly $90. So triple in a short period of time, which is a nice accomplishment. The bad news is if you look at where we were, maybe 1.5 years ago, we were up 10x. So there's been a lot of drama, okay, in the name. And our goal is as much as possible to reduce the drama. It's having a big impact on my blood pressure. I think it's having an impact on Dean's blood pressure. So we want to reduce the drama. If there's 1 takeaway that we want to leave you with today, it's that we have a plan to get the company back on a growth trajectory. We absolutely have a very sound plan to get the company back on track, get the growth back into the company, profitable growth, sustainable growth, growth. That's what you're going to hear, okay? So with that said, let me just take you quickly through a time line. I mean this company has been around for a long time. And in its history, it's gone through several different iterations. You can see up on the top, we had a lot of first relative to PC products relative to mobile products. And then on the bottom, you start seeing that we start building out an IoT story with a couple of acquisitions, they've gone relatively well. Dean and I came into the company in 2019, late 2019. And then we really sort of focused on this IoT segment, and we're going to give some context to that in the next couple of slides. But in 2023, again, the takeaway today should be that we're focused on this IoT opportunity. We intend to accelerate it. And by doing so, we will grow the company and we'll grow the company appreciably, okay? With that said, sort of again, looking back at that timeline, the company has gone through 3 significant iterations. If you look when it was founded, really up until, let's say, 2004, we'd call this the PC phase. So there was a lot of focus on PC products. Those are still an important at of our portfolio. So we will talk about that later today. But then we went into a mobile phase. We bought a company, Renesas in 2016, that really started accelerating on what we would call our Mobile phase. And you can see our mix of mobile in 2017 was over 80% of the revenue of the company, okay? So when Dean and I came, this was pretty much the snapshot. There was a significant weighting towards mobile in the company. And over this last 4 years, along with improving the underpinning financials, we really moved very significantly toward IoT. 70% of the business in the peak was based on our IoT product area. So we've had a history of being able to take products, take businesses and shift them and shift them well and shift them over time into areas that we like much, much better. And that's where we are today. We're going to talk a lot about this IoT business. In the IoT business, as many of you know, there are lots and lots of different products. And we're going to try to rationalize that. There's a second headline that you'll hear today the first headline again being growth back into the company, sustainable profitable growth. The second headline is we're making some sense out of this IoT portfolio, and Dean will cover that in his slides. But if you look at our IoT portfolio today, we have a lot of products that are in relatively narrow segments, I'd say but are #1 or #2 in those various markets. Our challenge as a company and what we've been aiming to solve is, how do we get into bigger markets? If you think about it today, we are in a series of markets. These are all great markets for us. All of them are narrow. They're not huge in terms of the TAM or the SAM that we can go after, and we're a significant player in all of these markets. So we want to take the success that we've had here in these narrower markets and build into broader markets where there's larger opportunity for us and that again, will lead to this concept of growth. So you can see here lots of number ones, UCC, I think Vikram and Saleel will talk about that, IoT and connectivity Venkat will talk about that, but there's a bunch of bunch of leadership products that we already have today that we're using as a foundation on which to catapult the company into this next phase of growth. If you think about IoT, so IoT means a lot of things to a lot of different people, why did we start pivoting the company away from mobile and toward IoT, couple of different reasons. And the next few slides are going to outline that case in some detail. First we absolutely think its the right market. You can see in the left bar graph, that the IoT semiconductor market is growing at 12% compounded. So very significant growth in that piece of the semiconductor market. It's actually the fastest-growing segment in the semiconductor market. If you look at the right chart, we got together with many of you, as Dean and I were just starting with the company in 2020. And in our Investor Day in 2020, we gave some SAMs that are shown here in the green chart, our number in -- it was about -- slightly backward-looking number in 2020, but we gave a number of '20 of $5 billion in terms of our serviceable market. At that time, the '23 serviceable market number was somewhere around $7 billion, okay? So here we are today and as we think about our serviceable market, that's grown very appreciably. And as we look out in time, it grows more again. First, in 2023, a comparable number, we're updating our SAM to $9.5 billion. So a significant increase over the prior number that was given at the last Analyst Day. And then second, if we look out at 2028, there's an even larger SAM that we have to attack $38 billion, okay? And that's coming from some areas of growth that we'll describe to you over the coming presentations, but a significant, significant growth in our serviceable market. Second, why IoT, why do we believe in this market? We think we have the right technology. If you think about an IoT system, it senses things. It takes that information into a processor, does some work, some manipulations, some compute and then it transmits it via connectivity link of some variety or another that so either connect to another device or connecting back to the cloud. Sense, process, connect. These are really the 3 elements of an IoT system. And we have technology that goes in all 3 baskets. In the sensor area, of course, the heritage of company has been on touch sensing, but we do have computer vision and some other technologies that are really sensor-based technology. In the compute area that Vikram is going to come in and detail, we actually have some great underpinning technology. AI accelerators, MPUs, MCUs, low-power neural networks, all of these elements we have today, building blocks that we have right now that we think can catapult us in this processing area to a real high degree of success. And then, of course, in our connectivity area, we've made a lot of noise about this. Venkat is going to really detail this in some detail. We have Wi-Fi, ZigBee, GPS, Bluetooth, all of these technologies are part of our portfolio today, gives us a great foundation on which we can build as we look out in time, okay. We have the right team. I think of this kind of a soup, right? And many of you have characterized the company in this way, but we're now taking raw ingredients that we have whether that's coming from acquisitions, companies we've acquired DisplayLink, Conexant, Marvell and then mixing that together with the right people, these 3 handsome guys up in front that are going to be talking to you throughout the day. And we've built a really cohesive meal by taking these various ingredients, putting it into a soup and really refining that into a point that we think we have the broadest IoT portfolio today with the most extensibility and sustainability, So these pieces are really what make it up. I think we have great leaders. I've been lucky, fortunate enough to attract some great people to the company. We were lucky enough. Saleel came before and has been a really, really instrumental player in helping us think through this transformation to IoT. So I've been very lucky. You can see up on the chart, it's very interesting as we think about IoT, 1 of the big battles you have is the war for talent. We have centers all over the globe that we can pull IoT talent into. We've got centers in Europe, centers in Asia, centers in North America, all of which are growing and growing significantly. You can see here our mix, our mix today for our IoT talent, 82% of our employees in the IoT area are actually overseas. Another thing that gets attention is it's almost a 50-50 split as a semiconductor company, people always think that we should be very hardware-centric. That's not the case. Our employees are split almost equally in the IoT area between hardware and software. And software becomes a huge differentiator in the IoT market, having great software engineering really, really helps springboard differentiate, and that's where we've actually been hiring very, very aggressively, drawing from all of these different centers. So a very wide global footprint, a footprint that enables us to source talent from all over the globe, a footprint that is very software centric, and we're actually very proud of the way we've been able to pull all of this together. Okay. The right customers, again -- why do we believe in this market? We already have a great footprint. We have all the right customers. Every customer in IoT is listed, the nameplates that we put together here are very representative of the who's who in IoT, Dell, Lenovo, Microsoft, Samsung, Google, Amazon, all of these players and then of course, we have all the automotive names that I'll go through in a minute. Automotive names that help us not only in our core business, but as Venkat and Vikram think about expanding into other technologies in the car, we have an existing customer base, a customer base that I think will lead us to success. Great teaching customers. We're talking to these guys every day. They're telling us what to build. They're telling us what they want, and that really gives me a lot of confidence as I think about it in terms of building our IoT business. Okay. Within the broad landscape of IoT and the thing that you're going to hear extensively today, sort of the new news, call it, Phase III point -- Phase IIIa of the company is within IoT, the sense, process, connect, we're really focusing and what you're going to hear a lot is on processing and connecting. We think that we have the right technology, the right customers, the right team, the right foundation to now take us and focus, really focus on these 2 areas. And different to our other IoT segments, as Saleel is going to talk about very, very important businesses for us that lay the foundation. These are broad markets. These are significantly larger markets than the narrow IoT markets that we're focused in today. These are 2 very, very big markets. And I'm very, very confident, given the foundation that Vikram and Venkat have laid forth that we can really drive growth with a focus on these 2 areas, okay? Why do I believe this? I mean what is the kind of -- as we talk about it internally, if you look at wireless and processors, number one, of course, we've had some success. This isn't coming out of left field. We were able to take a Broadcom asset that started as a $65 million business. And as Venkat will say, I think we gave a data point at some point in time that was somewhere between $200 million and $250 million in revenue. So we're effectively able to more than triple that business in a very short period of time. We know the wireless business as a company, as a group better than anybody in the planet. We really have all the right people and engineers as Venkat will talk about during his presentation. In the processor area, most of our focus has been on operators. We're using really video decoders, right? It's more of an application build processor. But Vikram has come in. He joined us 4 or 5 months ago from Infineon. We were so lucky that we were able to get him on board and looked at this holistically and said, hey, these are fundamentally high-end processors that we can take and expand into different market segments. And in a short period of time, he's been able to do that. As these question marks represent new categories of customers that we've already been able to win, kitchen appliances, high-end kitchen appliances, Vikram has been able to apply our existing operator technology and win in a whole new category. And then in video conferencing, again, an emerging application, same products, same general software, same investment, he's been able to go into a whole completely different segment of the market. So he's already shown and he will talk about in his presentation, and ability to extend from our core processor business, extend from operators and go into areas like kitchen appliances, like video conferencing systems, very adjacent, coincident verticals that require a minimum level of engineering investment. The second thing obviously, large markets. The numbers are here in terms of the SAMs, the wireless market on the top, $9.3 billion. This is the -- our serviceable market within the IoT. Obviously, the wireless market, and Venkat is going to detail that is huge. The processor market is bigger again, $24 billion in serviceable opportunity that Vikram will outline and show with very minimal investment, we can capture and participate in a great deal of this serviceable market. So 2 very, very interesting markets. Different to the markets that Saleel will talk about, narrower markets, markets that we dominate. We've had a great history in, these are much bigger brought markets. We don't expect to be dominant, but we don't need to. And that will lead to very, very significant growth if we just participate in a measurable way. We don't have to be the #1 player, and it will lead to significant growth for Synaptics. And then finally, as I've said several times, we do feel we have the right technology. It's not like we're reinventing the wheel here. We have wireless, we have Bluetooth up in Venkat's area. And in Vikram, we have all the fundamentals to build a great processor road map. So all the right technology is in place. The foundation is there and it's up to us to extend and build on that as we drive growth into the company. Today if you take a snapshot, we've already begun this initiative. It's not new. It's something we've been working on. What we call core IoT, and Dean will give some more detail on this as he gets up there our funnel today, and this is opportunities that our sales team has entered that we're prosecuting, we're working on as we speak. The core IoT funnel in processors and wireless is already almost half of our overall funnel. Our overall funnel is close to $5 billion. $5 billion of opportunities that we're working actively have some significant engagement on. $2.2 billion of that is on processors and wireless. So we've just really gotten started and it's already a very, very significant part of our funnel. Saleel's piece over here on the right, still meaningful, still growing, and Saleel will talk about that. It's $2.7 billion. Again, the opportunity here is very significant. Saleel is building the foundation from which we're funding and fueling the growth we expect to see in wireless and processors. And this chart is kind of meant to articulate that. Today, where most of our business is coming from the enterprise, enterprise IoT, docking stations, enterprise telephony, some of the segments that Saleel will talk about, we intend automotive to be a bridge, we've done really, really well in the automotive area. We've spoken, I think, on some earnings calls about pricing challenges there, but we really feel like we can bridge and generate significant revenue from point A to point B with automotive, and I'll come up and talk about that later in the day. But that fuels that's intended to fuel some explosive growth in wireless. The business that we're in today, we've shown really good results. We think it's a very large TAM, and we think that we can be very, very successful. We have every belief that the success that Venkat generated early on is something that we repeat and we should be able to take to the next level. And then all of that builds a foundation which Vikram comes in, leverages takes advantage to build his processor business out. So today, we have the foundation. We're in the processor market. We've shown the ability to succeed in the processor market, with this funding and fueling, we expect our general purpose processor business to really take off and go to the next level. So it's really a multistage approach here. We have a foundation that Saleel is going to talk about. Automotive serves as a bridge. It's a nice revenue bridge, something that we're in advantage of with very, very high gross margins, leading to wireless that subsequently leads to our processor business over the 5-year time horizon. Okay. Just to conclude, right? Again, you should take away 1 thing today, and that is there is a significant plan to grow the company, to grow the company profitably, to grow the company sustainably. So we'd want to take the drama. Dean and I don't like the drama out of the stock price, all these ups and downs. We think we can just keep on ratcheting up as we execute on our plan. We have reinvented ourselves many times over the history of the company. We've been successful in doing that. I call this Phase IIIa. It's another slight reinvention, where we're focused very much on processor and wireless, we're already in those businesses today, but we're going to focus. We're going to kind of double down on that area. We've -- the focus on IoT has led to the margins and cash flow that enable further investment. We've operated the business very tightly. Saleel will talk about how tightly he's managed that business. We generate a tremendous amount of cash and margin in our core enterprise IoT area, that is enabling us to fund the wireless and processors that we think will lead to the next stage of the company's growth. Obviously, within IoT, broad word, many, many different segments in IoT processors and wireless, 2 very, very large serviceable market opportunities for Synaptics. We think we can go after those, we think we can be very, very successful by focusing on that. And we think that, that's doubling down this concept of doubling down ultimately leads to outsized growth. We think we're going to grow faster than competition, faster than the semiconductor industry as a whole, and ultimately lead to shareholder value. So I'll come back in a bit, obviously, to talk about automotive, but really the main part of the show is the 3 gentlemen in front of me. And I'm lucky enough to have Venkat come up and speak first. Venkat and I have known each other for a long, long time, longer than I care to remember. But really 1 of our outstanding hires, and he runs this wireless business. He's going to talk to you a little bit about his background there and really has done a marvelous job building a great engineering enterprise. Okay, Mr. Kodavati, your show.

Thank you, Michael. Hi, everyone. Good afternoon. I'm Venkat Kodavati, SVP, GM of Wireless products at Synaptics. I joined Synaptics about 3 years ago. Before that, I was at Broadcom for 13 years, and I did my own start-up that we sold to Imagination, a U.K. company, all in wireless space. So I'm naturally very excited -- super excited to lead Synaptics wireless expansion. So today, I'll share with you our plans, business plans and revenue targets in the short moment. So Synaptics, I think, has a broad wireless portfolio. It's not only the Wi-Fi Bluetooth, which are the largest SAM, but we also have deep expertise in GPS, Thread, Uli and ZigBee, which argument the WiFi Bluetooth in certain niche IoT applications. Talking about Wi-Fi, I think you're all aware of how ubiquitous this has become. But just to give you more color. The other day, I was counting the number of Wi-Fi devices at my home, and it came out to like something like 65, 66, just like starting with the phones, laptops, access points, OTT streamers, security cameras, you name it all, like door bells, minutes. And other is my teenage kid, he keeps -- it comes running to me and super nice to me only 1x. That is when he needs his Wi-Fi hours extended. That's the power of Wi-Fi, okay? And the Wi-Fi numbers, if you see it is all here, 42 billion devices already shipped. Annually, 4 billion devices are getting shipped. It's a term big space, and the Wi-Fi standard has made rapid progress. Like I remember in 2000, designing the personally designing the fastest and first Wi-Fi device and at a breakneck speed of like 1 megabit. And now we are hitting tens of gigabits -- so I think Wi-Fi has come a long way, and it has still long legs to grow. Bluetooth is similar, right? Bluetooth or Bluetooth Low Energy, which we call BLE devices have inundated the world, be it ear buds, trackers, health monitors, remotes, many things. Personally, I like trackers because I'm terrible at keeping track, I think. So Bluetooth has been a great help for me. And Bluetooth devices are like shipping more than Wi-Fi, about $5.5 billion in currently growing at 9% CAGR over the next 5 years. So looking at this given this tremendous growth that we have in the Wi-Fi Bluetooth, Synaptics SAM expansion in a big way. So the way we look at this market is 3 segments: the high-performance, broad market and BLE and Thread. High performance as the name indicates, it's all about performance, video distribution over a long range and multiple protocols working simultaneously carrying video and data. And this is the only segment that we participate right now, right? On the other hand, the broadband is all about having basic activity at the lowest cost, low power and some of them have MCU integration. And the BLE, is all about point-to-point connection with the low data rates and low power, almost all have MCU integration -- integrated. So again, as I mentioned, we are only participating in the high performance right now, which is about $2.3 billion. That will expand to $3.6 billion in FY '28. But more importantly, we are branching to broad market and BLE thread which add about $6 billion. So in aggregate, a $7 billion expansion, huge opportunity for us to grow our revenues going forward. So I'll give you a little bit of history of Synaptics wireless business and our track record here. So I think most of you are aware that we acquired this in 2020 with a small team of 65. Over the years, we added best-in-class team of 350 engineers now, and we hired all the top talent from Tier 1 semiconductor companies or our consumer companies so that we have a rich mix of semiconductor and product exposure as well. And given this full-fledged team, which is spread across Asia, Europe, U.S., we are able to deliver 4 high-performance SoCs, all first-time success, which is not easy, right? So we were able to do that. And now we started to branch out to broad market. And as I think Michael mentioned, we also grew our revenues to north of 200 starting from a 65 base. And in that process, added many Tier 1 customers. So overall, we are well positioned here. Not only that, we have like the most rich experience in the wireless leadership. I think the DNA runs pretty strong, like starting from CEO to all of our -- most of our leadership has about 300 years of executive leadership experience in the wireless space. So I think if you were to pick 1 team in the space, I think you can pick Synaptics for that experience. Okay. So in the next few segments, I'll talk about these 3 SAM categories, starting with the high performance and broad market and BLE. High performance, as I mentioned, is all about speeds and feeds. Here, we need high gigabits of speed with the video -- for video delivery for sustained over a long range. And having video and data transfer simultaneously over multiple wireless protocols. For example, you take Alexa system in your home. You use a phone like sync the music to Alexa and then distribute the music to all your speakers in the home over Wi-Fi. Not only that, but Alexa has to be alert enough to listen to any query like how is the weather today and respond within a very short time over wireless connectivity. So think about everything has to go so well that the user experience is very good, right? So that's the complexity of this. And you can visualize like speak -- I mean the drones and security cameras, they are like 24/7 video transmission, right? It has to have a consistent video delivery. So these are the kind of attributes of the high-performance market. And I think a lot of people probably have this kind of misconception that WIFI is a standard space, so there is nothing much to innovate. I think that's not accurate at all. We've been innovating extensively in the beamforming special diversity and a few other aspects of algorithm to get a better range compared to our competitors in certain use cases, we actually get as much as 50% to 100% range. And other thing is that all our wireless high-performance IoTs have 2 cores, both can operate at a 2.4 and 5 gig or 6 gig simultaneously. So you can have 2 applications, use these 2 cores separately or can use 1 application use both cores to reduce the latency. So that's, I think, what goes with the high performance, and it's all in the gigabits of speed. Now I think radio design. I think this is 1 of the most complicated aspect in the wireless design, I think some of you may be aware of it. Actually, we, in our wireless industry, we talked about RF design as more art than science. And thank God, I'm not RF designer because I suck at even drawing a circle to save my life. So -- but we do have the best team. So we are safe there. What we do is that wireless RF design, we are taking it to the next advanced notes, like starting from 65, 40, 28, 16, and it's just not simple porting mind you. It requires a lot of architectural changes when you move from 1 process to other process, you had to change the mix, the split between digital and analog RF. You need to change your clocking distribution. A lot of things go into this. So it's not a simple porting. So coupled with architectural changes and the process inherent advantages, we actually outdo our competition by about 25% in the power -- active power in certain use cases. So again, great testimony to our team that we're able to execute this. And -- and our first never hurts, right, first to market never hurts. And that's what we are doing. We are introducing our first Wi-Fi 7 and Bluetooth 6.0 market in the IoT space next Q4, 2024, Q4. And Wi-Fi 7, as I mentioned, brings a lot of advantages. It has a multilink operation where to reduce the latency. It also has a fine grain usage of a spectrum so that it actually allows more devices to concurrently work to reduce the congestion. So -- and Bluetooth as well adds many more new features that it has as a user experience. Again, we talked about Wi-Fi Bluetooth coexistence. I think you are aware that, I mean, Wi-Fi Bluetooth, they both evolved independently, even though they were targeting the same 2.4-gig unlicensed spectrum to start with. And most of the companies like use 3 or 4 wires to exchange some information to enable the coexistence, but we have the foresight to actually have used 80 channels, 80 wires to exchange a lot more information in detail, the channel usage, the priority of the traffic, type of the traffic. What's like the receiver sensitivity, signal strength, all these things so that both sides can make intelligent decisions in terms of separation, in terms of priority and to so much so that, we actually, again, do like get 50% more throughput in certain use cases. So I think that's working so well for us on that Wi-Fi Bluetooth coexistence. And we are now expanding to Zigbee Thread as well, the same coexistence algorithms. And the other thing, I think if you ask any wireless customers like operators or retail customers. The #1 thing that they've dread is the service call they get when you launch a new product and the Wi-Fi doesn't work. Here, Synaptics scores super high because of the hardware flexibility that we have in our devices that allows us to deal with any kind of noncompliance other side may have, right? We take it very seriously, and we thoroughly test our devices so that when the product gets launched, it operates with devices as back as in 2000 or even -- I mean, even older. Not that we had Wi-Fi back then, but yes, you get the point. So that's our like [indiscernible]. So kind of to bring it all together, why we win. I mean if you were to pick, again, 1 reason, if I were to -- somebody wakes me up from the sleep and say, say, hey, why did you win? I would pick improbability because that is unmatched by anybody else and reduces the headache of customers. And the [indiscernible] RF design, as we talked about, Its spectrum went from 80 megahertz to 505 gig and now to 1 gig plus, and it's not a easy thing we design, our amplifiers, power amplifiers, low-noise amplifiers all of them with such a margin that they work reliably over a lifetime under stressful conditions. And the thing we don't talk about that much is the software, customers love our product because our software is lightweight. What does it mean? It's like we offload most of our processing to on-chip CPU so that the host has to do very little and the driver porting across voices and platforms is very easy, and less buggy when they are actually integrating it. So that's also another reason. And finally, even though Wi-Fi is a standard, there are many features Bluetooth also many features that are not mandatory that are optional. And we are at the forefront of bringing these features to the market so that customers can enable these features and get benefit out of it. So for example, we introduced world's was first triple combo last year. And until today, I don't think anybody had as the devices into the IoT space, and we are going to do the same for all our upcoming devices as well. Okay. I talked about the high performance. Now we'll talk about more our expansion to broad market and BLE thread. So imagine this, like you had like a model x or model s. Now we are trying to build Model 3. I can relate to this very well because I do have both cars. And I like Model 3 because it's cheap. At least that's what my wife says, maybe she wants to drive it more like all the time who knows. But anyway, the thing is we have to -- we can build a low-cost, high-performance product here. And the thing -- the main attributes of this are low cost, small size, low power turnkey. For example, take home automation. You want most inexpensive connectivity device there. You take sensors, the size is paramount. You take wearables. I mean, people that wear watches, nobody wants to charge these things like more than a day or more once a day, right? And the turnkey system like appliances, they want solutions that work right out of the box. Good news is that these are all not diverse but very synergistic features. And what we are doing here that we've been at work for the last 1 year, looking at our like solution, our -- each and every aspect of our SoC and identify the places where we can squeeze the [die size] but more importantly, not impacting the performance much -- but that is where we've been doing for the last 1 year. And we already identified the places to cut some of the margin across the block. So there's so much so that we can reduce the sizes by 40%. And integration also. We are actually now planning to integrate more components in there, like transmit receive switches, reduce the number of regulators that we use, all these things to reduce the overall system cost as well. And on the power wise, we are reducing the bit weights, like changing the clock distribution to slash the power by 50%. So overall, what you can take away from here is that we can actually build a low -- a broad market solution without compromising on the performance. And that's what -- I mean, I also mentioned about MCU integration in certain segments. Why is this, right? Why do you need MCU integration? A lot of questions come up. If you take these kind of devices like sensors, for example, they're very simple, right? They have their door sensor that sensor input comes to MCU, it acts on that and wants to let the hub over wireless connection. So customers want everything on a single PCB, only 1 SoC. And it's not something new to us. We do this already in ULE. All our door sensors, like which you may end up using -- if you are a customer of 1 of the top guys security guys in U.S. have this MCU integrated. So it's -- we have a lot of experience in this field. But the Wi-Fi Bluetooth is -- touches a lot more applications. So here, we do need to like scale our SDKs. And this is where we are planning to leverage the processor work that Vikram is going to talk about in a few minutes. And again, why we win? We are bringing high performance to the broad market at a very cost competitive on power. And we will also introduce many cutting-edge features that are not available right now in the broad market. And not only MCU, I think Vikram will touch upon this more, but we will actually bring AI flavor into it so that customers can actually enable new applications and [indiscernible] more solutions to the users. Okay. Now BLE and Thread market. here, I think we've got to be a little bit more strategic. Like we will -- these are the kind of segments that we'll focus, which are actually, again, low power, low cost, all these things. But -- they ask what you will look for these applications that will benefit from superior performance that we can bring to the table. So that's why we are going -- trying to pick some of this and focus on those segments. And it's not like BLE itself is new to us again. We have a very strong foundation on this one. We are actually rolling out a dual-core Bluetooth for BLE product this year, which will either increases the throughput or latency by combining the 2 cores. And we are at the forefront of implementing channel sounding, which is a ranging technology very ultra-cheap solution as long as your accuracy needs to be just good enough. And the BLE audio has been the hallmark of all our combo products, and we will be able to bring that to the broad BLE Thread market as well. On top of it, again, software. We have full stacks on like the software is so modular and simple that it's very easy to integrate. Like if they already have Wi-Fi Bluetooth combo, it would be easy to use that for the BLE as well. So that's what we think. Again, the playbook is going to be same, right? Just like broad market, we're going to take the high performance and the high-performance devices and squeeze the size and power and not impact the performance and come up with what we call Bluetooth, BLE nano cores. And that's going to be our plan here. And again, why we win is that the interoperability and the software porting that can happen from our combos to BLE. We can leverage the existing BLE IP. And we can provide a more robust RF performance at a low cost structure. And we will be first to market in some of these dual Bluetooth cores. So all these things will help us win in this market. So what does all this means, right? It all comes down to money at the end, right? So here, the thing that we are looking at is a $1 billion target that we have. And the high performance is going to continue to grow, and we'll be strong in that segment. But the more importantly, broad market will start kicking in FY '26 in a meaningful way and BLE thread in FY '27. Overall, as we look beyond '28, all 3 segments will contribute significantly to our $1 billion target. To kind of summarize. Synaptics is the leader in the high-performance wireless. There is no ifs and buts about it, and we have the best in team. And we can -- like have the team expand into the broad market and BLE so that we can now have additional SAM that we can go after. And the thing that will also help us is the whole processor and connectivity coming together. It will accelerate our broadband IoT expansion. So we think that we are in a very good project to hit $1 billion in the next 5 years. And last but not least, the fastest way to your kids heart is the high-quality Wi-Fi from Synaptics, okay? Thank you.

Thanks, Venkat. In many ways, Venkat and I are very connected, no pun intended, because we address the same. We're going to be addressing the same markets. So thanks for setting it up. So a little bit about myself. I'm Vikram Gupta. I am going to be talking about the processor business that Michael talked about and Venkat touched upon. So I started out in microprocessor design way back when working on Intel processors. So I did that for the first part of my career, then I moved on into founding a company in connectivity, which was then acquired by Broadcom. So I spent the next part of my career in connectivity markets. And then I transitioned to Cypress in the IoT space. And from there, I most recently ran the $1 billion IoT business at Infineon. And so I know I think or 2 about the IoT space and having been here at Synaptics now for not 4, 5 months, but 7 months already. What I'm going to tell you about is how are we going to address the IoT process processor market in the context of where Synaptics is today. So that's what I'm going to talk about. Okay. So first, a little bit about the market. Michael touched upon it, a typical IoT system, there's sensing involved, you send something from the environment. The processor gets involved for making decisions and then sends it out to connectivity, it sends it out of the cloud and then something happens. That's the experience typically. And I would contend that the processor is probably the most important aspect and Venkat is kind of glaring at me right now. But the processor is probably the most important aspect of the decisions that people make in deciding what to do with an IoT product. It sets the tone for what the product does. There's a lot of implications from a software investment point of view, which matter. And fundamentally, it sets the tone for the cost of the system because you can actually bundle stuff together as -- ultimately, over time, you can do solution selling, or just the economics of bundling actually work out better. So the choice of the processor is pretty important. And the IoT markets are expanding. I mean, there's no question about it. And this is -- this trend is going to continue. We see it across a number of different industries. One thing that is changing, which I think we're all aware of is that these processing elements are also starting to become more intelligent. And why this intelligence is important because when you can actually make decisions at the product itself instead of relying on the cloud, there are implications from a privacy perspective, there are implications from a latency point of view, you want to react quickly to wherever you are. And in some cases, you may just not have connectivity in very harsh environments, connectivity comes in and goes out. And so in order to make it full proof, you actually need to make decisions on the edge. And what this ultimately ends up doing is when you put it all together, if the processing element is actually intelligent, it's fundamentally going to make the IoT product just that much more contextually aware and actually give better outcomes for users or industries. That's what is going to happen. And so we absolutely believe that processors in the IoT space are going to increasingly become AI-enabled. So what does this mean for us? What we want to do is we want to go and address this processing market for the broader set of IoT verticals. And we believe that's a $24 billion market that we can address. And just to put a context to this, these are processors that we want to address for a number of different applications like the processors that go into smart appliances or IP cameras, smart building, drones, audio and display that kind of stuff. And just to be super clear, we are not going to be actually addressing any of the processors as part of the IoT chain that starts from the edge that go to a networking piece of equipment or networking storage piece of equipment into the access or metro infrastructure or fundamentally into the cloud and data center type of stuff. We are not playing there. That's not what we're doing. We are focused on the device edge, and the SAM that we're talking about, which is actually a subset of the TAM of this device edge is the market that we're targeting. The other thing I want to clarify is we are really focused from -- in terms of the SAM on consumer and industrial. We're not targeting the automotive space. It may happen opportunistically, but we're not targeting that. So I just want to be super clear about that. And when I'm going to use edge processors later in this presentation, that term always will refer to the device edge, okay? So that's the market. And so what are we doing in terms of breaking down this a bit more? Michael touched upon this, we already play in this space. We actually have products where we are focused on addressing things today in very specific verticals. That's why the SAM today is FY '23, it's $3 billion. And based on the projected growth of the market, as I mentioned, TAM is much bigger, what we can address in '28, it stacks up in the following manner. We will still address the verticals that we play in today. So that's a modest increase going from 3 to 3.5 from a SAM perspective. Then what we are also planning to address, and this is the opportunity that we talk about is taking the existing products that we have, doing a modest amount of investment and applying it to adjacencies -- adjacent verticals, broader set of verticals and go address them, that's the $9.3 billion. Then there is also investment to do new products and to fill out what we think we can actually go and achieve. That's the remaining 11.2 that we talk about. So this is how we stack up. Fundamentally, the real -- the main takeaway for all of you is the fact that there's a bunch of adjacencies that we can go after with a modest amount of investment. Okay. So set the market up. Now I'm going to talk about how we go about doing all of this. We actually have the products today. We actually do address, as I mentioned, certain verticals. We alluded to the operators that we have -- it's a vertical that we play in very -- in a very focused manner, have been playing. There's also multimedia phones and smart displays, which we actually focus on. But I'm just going to focus on the set-top box or the operator market. We obviously have a long history here of working with big customers. We know how to deal with them and actually supply SoCs into these kinds of systems. But just visualize this. You're sitting on your couch on Sunday. And yes, the NFL season is starting today, we're all excited about it. You go to your guide and you actually want to pick the game you intend to watch. And the screen breaks up into 4 different streams. You pick your game or if you don't like the outcome, you say, forget it, I'm going to go watch Netflix or something. All of that is being powered by a single SoC. And by the way, these markets they want to actually give away the hardware for free and make the money on services. So the point being, there's a lot of complexity in these SoCs that exist, which drive the need for performance. And at the same time, these have to be cost optimized. And so we do a lot of this stuff to service this market anyway. A lot of compute, a lot of other cores from a graphics point of view, and we have, by the way, been -- we get involved with doing certifications for things like Netflix has certifications and stuff. So we know how to deal with that. plus the content has to be secured. So security is another check box. We have -- in these processes, we have had AI since 2018, AI engines, I mean, and frankly, even in these operator solutions markets, what is happening is the need or the interest in actually having use cases that have AI -- that have a flavor of AI is becoming increasingly important, and we see it. We see it even today in this space that we are focused on. So broadly speaking, what I wanted to convey is that -- what we have today is high-performance silicon and leading-edge process nodes like 12-nanometer, industry-standard nodes, AI engines, industry standard core, sorry, AI engines, industry certifications, all of these are par for the course for us. From a software perspective, we've got to deal with Android and all the reps that Google comes up with, so we're used to dealing with handling like complex software and keeping up with servicing the market. So that's what we have today. And what we see is in adjacent markets, there is a pull that is -- that actually comes to us, right? And we happen to address certain opportunities, and I'm putting 2 up here, that we actually have in production. And Michael alluded to some others that I can't talk about, but really these are opportunities that are in the works for our appliances, security solutions, video conferencing-type applications. So a lot of adjacencies are coming to us and saying, hey, your silicon stuff is really good. And by the way, I want help in AI. Can you help us. And of course, we have a long history of working with the customer so that customer intimacy aspect is super important, especially when it comes to dealing with use cases which are AI flavored highly differentiated. They want that connection. A lot of them don't know how to work it themselves. So that's the kind of pull that we are seeing. And so -- when I came here and I looked at what we had in terms of the technology, and I saw the pull coming naturally and with my vision and what I wish we had with my experience in the past, I felt like this is a great opportunity to put together a strategy and go after a broader set of markets starting with these products that we had. And so we actually got some consultants who came in -- these are industry standard consultants, well known. They came in with a fresh perspective and sort of validated our thinking. So we took that input, and we then created the strategy, which is what I'm trying to show case here to all of you. So what does this mean? So what we want to do is actually basically, plant a flag and say, we are open for business to go address a broader set of verticals. And we want to do it. We want to do it in a way which is measured and phased and thoughtful all of those things. And what we are going to announce or where we are driving towards what we intend doing is having a family of processors that straddles across what I've broken here into 3 different tiers, the high-performance NPUs or microprocessor units, these are systems -- these are processes that power systems that are generally wall-powered, high-performance-type IoT systems, then you have high performance MCUs and connectivity MCUs. So these are MCUs that are -- they could be powering systems, at least the high-performance ones could be powering systems which are wall-powered, to battery powered. And clearly, the connectivity MCUs are the ones which are all battery powered. That's the stuff that Venkat was trying to talk about. And they all have they all have their own characteristics. And what we intend doing is within each family, have a common look and feel for our customer base. That applies from a software perspective, especially because the software part is super important in any processor story, and we are very mindful of that. The other aspect that you'll see in all of the stuff here is that we're going to sprinkle AI and everything because, as I said, that's where the trends are. That's what is going to also be a differentiator and we're going to bake in AI right from the outside in terms of how we position this. So our goal is actually to take these existing products and come out with announcements in a phased manner starting next quarter. We're going to be releasing this stuff soon. And so starting next quarter, then at CES and so on, we have a whole plan on how we're going to phase this out. That's for the high-performance MPUs because that's what we have today. On the other stuff, the MCUs, we are going to be like in the high-performance MCUs, I'm going to be leveraging and seeing a lot of what Saleel is going to talk about. So we have been working on this together in terms of creating this category, he'll touch upon it. But I intend to take it and go much broader with new products in this category. And in the connectivity MCUs, Venkat talked about it. There is a portion that -- a large portion that he's going to address. There's a small portion that I will address. So we'll collaborate extensively between us. And this is something that you'll hear more about as we move forward on this stuff. In terms of the go-to-market, once we announce this, we are going to be addressing adjacent markets -- so we'll go after adjacencies. And I also want to make sure you all understand that we'll continue to service our existing markets, so that's assumed. But for the new stuff, we're going to go after adjacencies, and we're going to emphasize our customer intimacy. A lot of customers are tied from sort of being at the back of the line and getting [indiscernible] solutions and as they're trying to differentiate their products more, they want some touch and that's what we're going to play to. And over time, we're going to build out a channel, not at the outset, but over time. That's how we're going to phase it. So -- that's where it is. Now, [indiscernible] told me that you can't have a presentation without having a block diagram of a processor. So this is homage to that comment. And essentially, what I have here is basically the guts of what our high-performance MPUs look like. Standard quad core, your favorite processors along with the floating point unit, your graphics engines, you've got like video and audio decoding engines, you've got your interface to memory. You've got all the interfaces that you can think of, which are needed in this space. And that's what makes up our a processor like ours. Now 1 thing I want to mention is that we have, as I was mentioning, we've been putting AI engines, NPUs in particular, in our products since 2018. And in this particular product, what you can do is if you were to play back, for instance, the 2020 Synaptics Investor Day we were seeing it on video. And Saleel was walking in a swanky suit. I've been told like my suit is not that great. But I can click on a button, go through the analytics and actually point to a website to go buy that particular suit that he wore. So we actually have been creating those kind of use cases today with our customers. And so it's not just about putting or putting -- or throwing AI into something. It's really about trying to look at what does it mean within a vertical to actually give the user experience the right flavor and the product actually to mean something within AI context. So I just wanted to touch upon that. It's something that we actually take a lot of pride in. So moving forward, a little bit on each 1 of these areas. High performance MPUs. You can see the verticals here that we plan to go off and address. One of the things that I wanted to mention here is that as far as the -- as far as what works for us is all the things that I mentioned, we are in this 12-nanometer node, where we do our current SoCs for these specific markets. If you look at the adjacent verticals that we want to go after, in some cases, we'll probably be on the leading edge. In some cases, we're going to be in the sweet spot. So we feel very good from a silicon perspective with the cores, the integration and all the stuff that we have from a silicon point of view, we feel extremely good about. We want to be able to -- and I'll touch upon this a little bit more later. We want to be able to actually take care of customers from an AI perspective. So we want to be able to work with them to help them incorporate AI. So that's going to be something that we do more of. We will be investing in specifically. And this is something that you'll be hearing about more from us. The other part of it is Venkat talked about the high-performance connectivity stuff. These MPUs pair up very well with the high-performance connectivity. And a lot of other suppliers can't say that, that they have both the pairing between the MPUs and the connectivities working seamlessly like this. And so that's another thing that we plan on offering by default when we go address customers. The high-performance MCUs, these are more optimized systems. As I said, they could either be battery-powered or wall-powered and you can see there's a range of applications here or verticals here that we can actually go service. And we are keying a lot of and working with Saleel's initiatives on the human presence detection which he'll talk about. But the point is that these kinds of MCUs have -- are becoming increasingly a very important application in their own right because what you find happening is with the increasing need for computing and AI, a lot of the lower-end MCUs are migrating upwards to be more high performing. And so this is actually an evolving market in terms of the need for MCUs like this, and the trend is actually favoring these to grow in a bigger way. So our idea is to make sure that we have the right sensing technologies, both in terms of vision and audio, have multi-tiered power schemes because we have to be mindful of power consumption especially in certain verticals, put the right kind of AI in it, for instance, in your -- if this were to go in and do an IP camera of something, I think we can all -- we all know from experience that we get a lot of false notifications, and so you can actually do things more on the edge to actually make these more effective and more efficient from a power standpoint. So we want to be able to address those types of use cases with our AI offerings as well. Again, here, there's a choice in terms of what connectivity you can pair. And we have the entire range of connectivity products that we can mix and match things with. And finally, the connectivity MCUs, battery operated, very cost effective, very power efficient and integrated with world-class connectivity with the right AI flavor in it, I think this can actually offer a very differentiated value to a lot of customers who are looking to incorporate smarter devices on the very, very edge of the IoT. And so again, here is the same thing. A lot of collaboration, best-in-class connectivity, as I mentioned, offering AI models and offering the right software, I think we are well positioned to go address this. And we are already starting to work on it, and this is in development. So those are all about the silicon pieces. To me, the software is extremely important. We need to have our software story be super buttoned up. And in the context of this, let's just call it, low, mid and high, the high is all about Linux and Android. We already do Android today. We're going to expand to Linux. And there the distribution that we're going to go after is Yocto linux because that's the 1 that is most widely used in the IoT, and we phase in other disclose as we go along. In the context of the mid and low, we're going to be focused on only RTOSs because that's what they are. They are embedded RTOS systems. And so there, we're going to be targeting free RTOS and over time, we'll go into Zafer and expand that way. So the idea being that we're going to phase -- we're going to pick the most important software distribution or the OS, get that going and then phase in the others. Our goal will be to always make it easy for our customers to program with our software. In their respective lanes, they will be able to basically write once and retarget to any 1 of our products. So we'll protect their software investment so that it's easily targetable. The other thing that we'll do for our customers is give them enough books so that they can differentiate by programming and adding their own sauce on top. So that's going to be super important for how we come out and present ourselves to the market. That, coupled with the fact that we are -- we focus a lot on the customer intimacy aspect. We are -- what we feel very strongly about is that combination is going to resonate with customers to take care of the software investments. So that's on the software side. And then finally, from an AI perspective, we've been sprinkling AI all through this presentation. It doesn't make any sense for us to not do it because we've got the experience, the trends are all there. I think the key is when you look at the verticals, our customers or customers within verticals, everybody has this feeling of actually incorporating AI into their products. In some cases, they don't know what to do about it. They want to just future-proof it. In other cases, they want to actually work with us to come up with use cases. In some other cases, they're actually way ahead. They've actually invested in their own teams. They have their own models and so on and so forth. What our approach is going to be is to take a holistic view of AI. We want to make it easy for our customers to incorporate AI into the products. So if they don't have a model, we want to give them a default one. If they have one, they want to put -- we want to be able to put these models into our tools that we have been using for a couple of years now to profile these models, optimize it and then compile it and target, target it to our SoCs. Those models are going to be the new goal -- and so we actually run them in a very secure manner inside our SoCs and that's going to be a thing that we do by default moving forward. So over time, today, there is a fragmented view of what -- where AI runs on the products that we have. There's MPUs in some cases, in some cases, we actually target GPUs. In some cases, the cores, standard cores themselves. Our tools help us do that. We're going to maintain those tools. But over time, we want to actually invest in having a scalable set of IP with transformer capabilities so we can support some of the LLMs of the future. This is out there, but the point is we want to be able to control of our IP going from the low end to the high end. That's the idea. And the biggest takeaway here is we want to make AI frictionless for our customers. So I think in -- just to wrap this up. We touched upon actually putting together all these pieces into a strategy, which I hope I have been able to convey to you, it's something that I feel very optimistic about. I don't know if I do the justice in terms of conveying my optimism to you, but it's -- it's something that I feel extremely good about. And 1 thing that I'll say is that when I came to Synaptics, I wasn't sure -- I had no idea about what the team was, the team I was inheriting and so on and so forth. And I can tell you that in the 7 months I've been here and being very closely connected to the engineering, our silicon teams and our software teams are top-notch. I truly, truly feel that. And we are investing in getting more AI talent. In fact, we have pooled together AI resources from across the company to actually make some of these AI initiatives work for us in a cohesive manner. The other thing that we are doing is actually getting business talent in who have experience in these broader markets. So the markets there, we talked about it. We're going to unlock this $24 billion opportunity over time. We do have products today, and we're going to put a modest amount of investment into it and expand to other adjacent verticals. We're going to be very customer focused. We're going to play to our strength with customer intimacy, make sure that the software story is buttoned up, the AI story is buttoned up. And even if I take a small fraction of the SAM we've talked about here, actually, this pans out. And I actually think we have an opportunity to do much better than that small fraction. And I was -- I hope I was able to convey that to all of you. Thank you.

Thanks, Vikram. I'm the last of the handsome guys, Michael said was going to come up and speak. And Dean's feeling kind of bad. So I would contend, he's probably the handsomest us all. So your last for that. Anyway guys, good afternoon, and it's good to see some familiar faces again. My name is Saleel Awsare, and I run our enterprise and mobile business for Synaptics. I've been with Synaptics since late 2017. And as Michael said, with him the whole last 4 years that you've been with the company. Today, what I'm going to try to articulate to you is what really excites me about the enterprise business in the present and really how I think about it and how the company thinks about it moving forward. What we're going to walk through is to see the products and the technologies that have a lot of synergy together. And really what brings it all together is a customer base that is unequal in the industry that we go and support. So with that, let me get started. I ask all of you to envision your desk, as I call it, the total Workspace platform. put some numbers on the top, we'll walk through each 1 of them. Let me start by clicking your dock, we are the category leader in the market. Why are we the category leader. We've spoken to all of you in the past. We've got not only our display port technology, but our display linked technologies that we put in together, and we are the category leader. The dock is for all practical purposes, the hub of your desk. It brings in your notebook. It brings in your speakers. It brings in your monitors. We are the ones who make it all work together. Moving forward, the touchpad. The touchpad, as Michael mentioned, is what Synaptics is all about. It continues to be a great business, and I'll tell you why. I see some of you using your laptops here, it's probably high probabilities of Synaptics touchpad that gives you that good experience. Moving further, we have our fingerprint sensors. They're all also on your notebooks. We are a leader in that space. AI, edge presence detect, this is a new technology. We acquired a company late September last year, and I think Michael mentioned that as part of our journey. Again, bringing new technology with AI onto the PC market. And Vikram talked about how he's taking that AI into different areas. So again, a lot of synergy within the company, but my customers are pulling us to do some exciting things into their platform. So that's what we've done. And now we are already shipping edge-based AI presence detect on notebooks. We announced that with Dell, I think, a few months back. We see the market growing into monitors in the future. Continuing on, wired and wireless audio. We've been a leader in that space. We have audio in the headsets, and I'm going to get into a little bit more details on that. If you all -- some of you travel with a Jabra speaker, probably delivering Synaptics technology there. And you probably didn't even know these new monitors that have Zoom and Teams enabled, using Synaptics audio technology. Continuing on, I hope you guys aren't getting bored. We have a lot of technology that we put in the market. So it continues on. Unified communication SoCs, a great market for us, where we put not only our video technology, but our audio technology driving UCC phones. And I'm going to get into a little bit more detail why this also is a great category for us as we think about the future. Last but not least, we got this asset from Conexant, and we continue to do well on the printers with both fax and our print SoCs in the market. So as you look at this, you can see a fair amount of units up there on the top, and we are probably engaged with all the customers in that. So I would endeavor to say, probably 100 million people today are using devices that Synaptics drives. That's a pretty great statistic to have. We talked about SAMs. Michael talked a little bit about the SAM that we are in. Today, this is specifically the enterprise SAM, not enterprise and automotive. We're going to talk about that. Dean, I believe, is going to talk about that separately. The enterprise SAM, we've broken it into 3 categories here, the PC, the video and then the audio. So today, our SAM, we envision is around $1.8 billion. We expect that to grow around $2.2 billion range. And you can see how that happens. We are #1 in enterprise notebook touchpads and #1 in fingerprint sensors. In docking, we are, by far, the leader well ahead of all the competition that you have in the market. In our wide enterprise headsets and our UCC SoCs for the phones, we continue to have great market share. And -- with some of the assets from the acquisitions that we've done, putting together some of the work that Vikram is doing, we are now going after AI presence detecting PCs. We're going in video technology for seamless workspaces, and I'm going to tell you why I'm excited about that. And AI enhanced wireless headsets. So with that, we can take the SAM to $3 billion. But the key takeaway, as Michael was saying, the key takeaways, think about that. Every segment that I talk to you about here, we lead, and that's a great place to be. So that's why I'm really excited about this business. So why do we lead? We lead because we have a marquee list of customers. And we have customers that we have partnered with for -- decades of partnership with. And the names here, I think all of you know each 1 of these guys, over 30-plus years of strategic relationships, great reach within the customer. I'll give you a couple of examples. Some of our PC customers, we are 1 of the few folks who've got a small site in Austin or Houston, if you may, a site in Taiwan and in China to support them. And some of our competitors do not have the reach that we have because of the relationships that we have, and we provide them on-site support. So we do a lot of support with our customers. The other great thing I find is enable different products. And as I was preparing for the deck, I was looking at my desk, and I wanted to give you guys an example of HP. HP is a great customer of ours. And if you think about what we sell them, we sell them touchpads, fingerprint sensors for the notebook. We sell them a video SoC for their doc. We sell them a audio ASIC for their headsets. And we actually still sell them fax chips for their printers. What does that do? That gives us unparalleled access. Because we're strategic to their senior executives, right? I'll give you another example where now we're also doing a lot of cross-selling. We've got a lot of IP and technologies together, Venkat's WiFi, technology that's coming to the company, using Cisco as an example, for the new video phone that they have released. We not only sell our UCC, SoC, but we sell our WiFi Bluetooth combo. So again, giving us a lot of technology, lot of stickiness as we think about the customers here. So great cross-selling, lots of products, excellent reach. And I forgot to mention this is most important because we are so strategic, we get to see their future road maps and trends. Presence detect is a perfect example. They said, hey, we want to work on this. We said, great, let's partner together drive that. That's really what all these marquee customers have done. So I talked about a great list of customers. I talked about end products. But all that only matters if you've got very differentiated technology and pretty much unparalleled technology. Michael talked about verticals that we support, and we really win in these verticals because our technology is very different. So I'm going to walk you through these 6 bullets if you may or 6 bubbles, and we'll do counterclockwise. Video and data transport, our high-speed analog SerDes team is probably one of the best in the world. And they have been able to put best-in-class video transport on your docks. We acquired DisplayLink, a few years back. Their low-latency video compression is not like anybody else's. We've put those together to become a premier supplier for the docks. Edge AI processing, Vikram talked a bit about that earlier. But what are we doing? We are focusing on low-power hardware and advanced machine learning algorithms with our focus being on the edge. Touch sensing. Now this is Synaptics' DNA. The company was founded on that, and we provide industry-leading portfolio of touch ICs for our PCs, for mobile phones, and finally, also in our automotive area. Advanced audio, not only do we do great analog mixed-signal design, but we also have unmatched noise-canceling algorithms for enterprise productivity. Biometrics, this is an area where our fingerprint sensors were leading. Now we've put vision in there, giving you a multifactor authentication, and allowing really to be a leader in this space. Last, but very important, the customers that I talked to you about for them, enterprise-grade security matters. And you will see it throughout the deck how we think about security, how we make sure we are focused on that, our software, our firmware, our hardware, we bring together enterprise-grade security for all the products that we do. So the reason we win in the market is our differentiated technology that really powers all these products that I mentioned earlier. I'm going to go a little bit into each 1 of these categories. And maybe in the Q&A, we can, of course, take more questions as to how we lead and why we lead. Leadership in docking means you are ahead on the best-in-class video standards. I put a bunch of names here, but you must remember, we are engaged with the video, there's a group called Visa, which is the world-class video group, that's a decide. And we do all our interoperability. Venkat talked about interoperability for WiFi here, you think about it, you need interoperability for any old notebook, new notebook, monitors, is all going to work. And the video is going to be great, and we enable that. And why is that? We've got best -- we were first to market with display port 2.1. The focus here has been leadership on a technical side for this product line. We were first to market with HDMI 2.1, allowing much faster transmission rate. We were first, because we work with our customers to create something that we call a smart dock-on-a-chip. We introduced this at CES, you'll hear more about it later this year, where we've taken the BOM that is on a doc, put it into our chip, therefore, reducing some components and complexity. That's for the hardware. On the software and firmware, we've given it some smarts, what are the smarts. We can do firmware and feature updates OTA. This sounds like, is that exciting? In the old days, and we've got an old dock, an IT person had to come to your office, fiddle around, go in and do update your firmware. Now -- and this is hearing from the top customers, the enterprise managers do not want -- the IT managers at the enterprises do not want to send people to your offices, especially since all of us -- a lot of us are remote now. It all happens over the air. We were the first to get that in, and you'll probably see 1 of our biggest customers announcing that sometime in next year. We pioneered universal docking with DisplayLink and I'm going to talk to you about that a little bit in detail. And that really has made us not only a category leader in docking but an unparalleled leader with really a robust road map, key customer relationships. And I see a good view as I look into the future for this business for us. I'm going to talk a little bit about universality and some of you guys are familiar with DisplayLink that we purchased. They really pioneered universality. What does universality mean? Universality means any PC, I see some surfaces, I see some MAX. That's our new workspace. Any PC, any OS. I don't think anybody's got a Chrome, but if you've got a Chromebook, that OS. And any connector. When I mean connectors, I mean USB Type C, most of us here are probably have Type C, but there's a huge installed base of USB Type A still there in the market, HDMI, display port. All of that universality, we know how to support. And if I'm an IT manager, and our IT manager, our IT managers very much like that, he wants to make sure the dock that he deploys can be easily used and it's frictionless. So that's a decision that they're making now and for them, universality has become very important. So the MAC in North America is now 45% in the enterprise. That requires a universal dock. Office hoteling is 63% in large enterprises. In this case, I bring in a notebook, move to a hoteling area, it might not work if I don't have a universal dock. So with our technology, you can enable that. And then BYOD policies, people have you bringing your own phones, this, that, all of that we put together with universality. And that is why with the technological advances on our design, our hardware, our software has really made us a key player in this market. So we took this technology that we have, which is the low latency video compression. Now if most of you are in a Zoom call and if you've done this thought -- not thought, this experiment, I always do this. Move my hand once, you can see the nice latency as it moves very slowly on the other side. Our low latency video compression technology that we have allows the cursor wirelessly to move real time, which is very important for productivity reasons. So that is 1 of the reasons we got the first wireless dock announced earlier this year. Not only did we have that, we had our media agnostic USB. This means USB over wireless. This solution also uses WiFi that Venkat talked about. So we kind of put all of that in there. A lot of bomb in there, as you think about it. Monitors are becoming smarter. We all -- maybe some of us have -- Dean watches our budget carefully. So my monitor -- I don't have a smart 1 yet. I've got a bit of a dumb monitor. But the smarter monitors. You walk in, you need to make sure you can just cast, you can connect wirelessly. This is happening. These are early days of the trend, but we believe with our technology, with our low latency video compression, our WiFi, our video SoCs and Vikram's team, putting it all together, makes it compelling. It's going to be high end of the market, but it's compelling and a very interesting use case for consumers moving forward. And also with the presence detect, that becomes important in monitors why, especially with Energy Star new standards coming, as I look away, things like that, it can start to power down. So that's how we are thinking about the connected monitors. Then we put it altogether into meeting rooms. We take some of this technology. I walk in. We still have a lot of issues, people fiddling about, looking for connectors, things like that. We envision a place, and this is a bit out in the future, but we have the technologies today. And vision a place I walk in, put my notebook, start working, get started my meeting, start typing, there's no latency, things like that. So we believe the future of the enterprise and Synaptics, it's early days with Synaptics is investing smartly in these areas, putting the technologies within the company as I think about the future of the enterprise. Now moving to touchpads. All of you use them, all of you use them. I hope people aren't using mice. I don't like mice. I like people using touchpads because that means a synaptic solution. Touchpads have been around a long time. But recently, there is a resurgent of innovation around that. Are you going to say, really? Yes. What has happened is the touchpads are getting much larger, over 130 x 95 millimeters. So bigger -- much bigger touchpad because people want to have user experience with a bigger touchpad. Apple is the one who started that trend and my customers are all following. Why do I like that? I like that because I'm going to see an ASP uplift. And we believe larger touchpads will take approximately 40% of the market by 2028. If you size the market to be 180 million to 200 million units, you get that. And every PC always has touchpad. So that's great for us. What is the other thing we're seeing in the market? And it's just started. Again, Apple led in that, but we announced earlier this year with a couple of PC vendors, something called haptics forcepad, which means the whole pad can be used, but it's moved from an older mechanical design to a haptics-based forcepad design, which allows you to use the whole pad. And the best part about it, we see a 3x content value increase compared to the existing touchpad. And the market, again, we are sizing it and talking to our customers about 17% by 2028. It's in the few percent without Apple already, but about 17%. Again, when you look at the market, about 180 million to 200 million units, a good market. So the other things that we innovated in, and you can see the seamless pads where there are no more seams on there. So because of great industrial design. A collaboration pad. What is a collaboration pad? I'm going to Zoom call and in the Zoom call the top of the touchpad becomes the Zoom icons. Volume up and down, mute, turn video on and off. So I'm not out there fiddling. Somebody walks into my office, Venkat walks into my office while I'm doing a meeting. He's there next to me. I got to hit that real fast. So the collaboration pad can do that. And lastly, we just finished this design. One of our customers wanted a lighting pad for a number key. So when you get into some mathematical stuff, the pad becomes just your number key and then you can use that. So interesting innovation happening there. The collaboration pad, I feel good because I think more and more people are going to use it. It's going to be on Zooms, it's going to be on Teams. But all of that ASP uplift. All of that gives us an ASP uplift. But what does this all mean? This also means pads have become bigger. All of us have got our palms. We got to make sure we've got something to manage the mitigation of contact with it, it's called ACM. So we've developed, again, AI, you heard from Vikram, AI is a theme. We've developed some UX algorithms with AI base, which get better as the user uses. These probably will be market sometime second half next year is what we expect. Again, AI-based palm rejection algorithm. So it knows that I didn't intend to move the cursor, it was just my palm that caused that. So take away here. Touchpad has been around a long time, but we're seeing some good resurgence in innovation in this space. And more importantly, we're seeing ASP uplift as that happens. Best-in-class biometrics, fingerprint sensors are getting more important as security focus is going, especially in enterprise at governments. A lot of the government now do not allow cameras necessarily in, so you have to use fingerprint as one of your authentications for that. What we have done, the 1 that you see here is the C-DECK. That's the original traditional design where people had to cut a hole to put a fingerprint sensor on the C-DECK. And Michael had given me an assignment to figure out what the C-DECK meant. It's just called the C-DECK, the back is called the A-DECK. This is the C-DECK. There is no reason why it's called the C-DECK. We were trying to figure that out. But anyways, but what has happened is, from an ID perspective, people don't want to make that hole. And also it costs more. So we innovated, where we now are able to give you a fingerprint sensor on the sidewall, a fingerprint sensor in the power button, which is kind of cool. You log in, you turn on your laptop, you sense your finger, and also on the key cap, allowing for different form factors. And lastly, we announced with Lenovo using a fingerprint sensor on their 35th anniversary, ThinkPad, where they do it wirelessly. So over Bluetooth, we do fingerprint authentication. So as I said, security focus is growing in enterprise and government. We are probably the only Western supplier of a fingerprint sensor in the market, which is interesting as supply chain resiliency issues have come up. The attach rate has been steady, steady at around 28% to 30%. Hasn't gone up or down, and it's been good. But again, we believe the ASPs are increasing, and I put this thing called match-on-chip. What does that mean? Originally, the fingerprint sensor was just a sensor. It would send the information to the host to decide whether it matches -- is it me or is it Dean and then decide whether to log me in. Now because of security reasons, they wanted it all done on the sensor or the ASIC. So our new products, we do it all match-on-chip. So therefore, again, giving a little differentiation and ASP uplift on that. Lastly, enterprise security. So we have secure resilient firmware. All of this firmware is NIST, which is government standard, FIDO and FIDO NEXT Certified. And this is also important for our customers. We've kind of put that together as the next big thing on the notebooks, which is our fingerprint sensors. Moving forward, this is new, and this is really exciting. Edge AI in the PCs has arrived. We've got a big high-level executive meeting coming up with Dell for Michael and I and 1 of the things that they really wanted to talk about is what is Synaptics thinking about AI for the PCs. And as you saw, they're talking a little bit -- a lot more about AI coming on to the notebook. I'm really glad to say that with our edge AI-based presence detect, we are already shipping in the PCs. So in '22, '21, the early application for this was wake on approach, lock on leave. So when I come over in a notebook, it looks at my face, logs me in, uses windows hello to get that going. I walk away, it quickly locks up. That was what happened. And the attach rate -- now by the way, all the 3 OEMs have 1 or 2 systems today shipping, some more than others, but the adoption of the 3 OEMs believe that. In May of 2023, which is this year, Microsoft gave native support on Windows 11, and you go into the GUI and you set it up, edge AI present detect that, we believe, is going to be a big inflection point as we think about the market, right? So we think the attach rate is going to be about 16% by 2025, broader market acceptance, and that's about 29 million units. So going from 2 million to 29 million, and we are working hard on this product. And I'll talk a little bit about specifically what we're doing. Why should I care about this technology? One of the key reasons. And this is a Intel white paper that we actually work with them on, 20% reduction -- 20% increase in battery life on your notebook. So it knows quickly to turn off the screen. The screen is one of the biggest power hogs, just to do that and works with that well. It also enables great security privacy. I'm sure all of you or some of you when you started, we used to go get that little screen protector on the plane, so people couldn't look from the side and figure out what you're typing. We do that with our technology now. So if somebody is lurking behind me, we blur the screen, it detects that somebody was there. Again, a real use case, taking something that was in the market doing something with it. And lastly, you heard about Zero Trust, which is where most enterprises now want constant verification that I'm the user. This is a part of doing that. So what is Synaptics doing? Synaptics is doing really a low-power neural network with a compute with our new chip that will probably be available sometime next year, with new things added like facial biometrics, multimodal sensing. Multimodal sensing means we can also take audio information, which we do well into with vision to give you some other interesting data and engagement awareness. This is a new area in the market where people want to see whether you're engaged. I'll show you engagement awareness. It will give the user also on the other side, it doesn't look like you're engaged. So these are the kind of things we're looking at it. And we put that all together with Vikram's team working together, taking this for this market and as you said much more -- Vikram said, a broader market. So a new area -- it's really early days, but I'm happy to be in the market early days, and our customers, we believe, will start using this technology as it becomes more interesting and useful. Now moving a little bit from the PC and the docking area to unified communications and collaboration. This is a great area where we provide probably the majority of the SoCs for existing phones and video phones, headsets and speaker phones. So we are the #1 leader in collaboration. And why is that? Our UCC SoCs bring both video and audio. In video, it's the usual encode, decode. In audio, it's mixed signal design plus audio algorithms. We've also got some video algorithms for image improvement, frames, making sure things are not jittery. So those are some of the things that we have put in our products to allow us to really be #1 enterprise in the market. But we did this all not only with the SoC. Vikram talked a lot about software. So you can see we have created software through this. Software is important because the users want to know platform after platform after platform, the software can be reused. And from SKU level, from the basic to advance, we do that. So we've really thought through not only on the hardware side, but also on the software side. And lastly, we've threaded in AI on the video portion of it and the audio portion of it. One of the most interesting examples is this new video collaboration form that we just saw, I think it already might be released by Cisco in the market, which is the person on the right is kind of using that, which uses our SoC, which uses our WiFi Bluetooth, which uses some of our audio technology. So we all put together and unified communications and collaboration requires passing different standards. We've done that also. So really, headsets, phones, monitors, speaker phones, video phones, a lot of technology here from Synaptics, all driving that with some great marquee customers. I talked about the phones. Let me go into headsets. Headsets is an area that Synaptics has been for quite a while, the technology originally came to Synaptics from Conexant. So I know a little bit about it. But the focus has always been in the past on wired headsets. As the world's move to wireless, TWS, enterprises now want that quality of wireless headsets in the office. And they don't necessarily want you using AirPods at the office. Call centers, they don't have AirPods. You got to give a Polycom or somebody's headset in there. So you got to make sure you've got a wired 1 that we needed. We had not seeing market expansion in the wireless area, and we expect this market to grow, and we are really working together with our connectivity team to kind of put that solution in there. Why does it matter? Differentiation. Again, software. Software is the key. We use a similar -- provide a unified software platform, and we also provide multi-protocol connectivity, very important. We have Synaptics has decked, Bluetooth, USB, all of that, so it can be wired, it can be wireless, it can be decked, it can be Bluetooth. We all put that together. And lastly, performance. The user expects performance, and most of these folks are sitting in call centers. It's noisy. It's loud, you really need to make sure you have AI-enhanced noise-cancellation algorithms and highest level of audio performance for lowest power, that's where we focus on. Vikram talked about showing a block diagram. So I couldn't be outdone, so I had to put something technical here. So I actually took a picture of what we have to do to pass Microsoft's Teams. And we're the only ones who passed Microsoft Teams premium suite. Not easy to do, we've done it. And this is the headset being tested. And as you can see, at different degrees, there's different noise being injected. And you've got to suppress all that. So that's really your call center type of application. So that's my homage to showing something technical. But again, this is real, and I wanted -- I actually got the data. I wouldn't be smart enough to walk you through the DBs here. But yes, we have really passed this, and we were the only ones to get this Microsoft Teams premium specification. Zoom now is also on the band value, and we've already been certified with Zoom for this kind of headset. So for enterprise quality headsets, moving towards wireless, we are well aligned. We expect this market to grow, and we'll be going forward with that. So I talked a lot about your desk, your audio stuff. Let me kind of show you conclude now why -- as I said, I'm excited about this business, and I see it, this business moving forward. We are #1 in every market we serve. We are growing content value, and we've shown you specific examples how we've grown our content value with innovation, really a very broad portfolio of unique technologies. A lot of the technologies were organically developed. A lot of the technologies is acquired. And we've kind of been intelligent in putting them together. And we have successfully shown that we can cross-sell to these big OEMs, multiple products. What does this do? This puts a business that is market-leading gross margins and really very good operating metrics. And my focus is to ensure that this is the fuel that Synaptics needs in some of the other areas that we are looking at. This is my last slide, and we'll take the Q&A after we are done. Oh, I get to get our CEO back to talk about automotive.

It's me?

It's you.

All right, my friend. Thank you. Well done, Saleel. Well done. Okay. If you remember my pretty charts from the beginning with these bubbles, the automotive business serves as sort of a bridge, right? It's another layer on top of the foundation that our enterprise business provides and gives us -- extend sort of the runway as we build into the wireless and processor opportunity. So that's really what our automotive business is all about. And I'm just going to give a couple of slides here to give some detail. So we talk to you all the time about our automotive business. And maybe it's not entirely clear as to where we play. So if you think about a cluster, the cluster is the instrumentation like the tachometer, the speedometer, anything that's actually showing what's happening when the car is moving, Today, that's digitized. There's actually a display driver, DDIC that sits in the cluster, we generally do not play there. We don't really have much in terms of a presence in the cluster. Where we do play is the top part of the chart. That's the infotainment piece. And the infotainment has moved from discrete LCD display drivers and discrete touch circuits to this TDDI, the integrated touch and display circuit, okay? And I'm going to give some more detail on that in a minute. You can see when displays initially launched, and we're talking here about LCD displays. That's where we make our living, the majority -- vast majority of automotive displays are still LCD based. They haven't moved to OLED. And if we play this right, and we'll talk about that in a subsequent slide, we would expect to mute the presence of OLED in a car. It's not a great fit for the car. Some models have launched with OLED. But generally speaking, there are a lot of disadvantages to OLED. As I say, if we play our hand right we would expect that the presence of OLED won't come in, in any meaningful way. But where you can see the middle part of the chart is where we are from an infotainment perspective, we're just in the relatively early innings when you're talking about cars on the road, production automobiles of the transition from discrete LCD display drivers, discrete touch circuits to TDDI. That's kind of where we are. So we'd expect that market to grow very significantly over the next handful of years until eventually, probably in the early 2030s, you don't see any more implementations that use a discrete display driver, a discrete touch circuit. This gives some perspective on dollar content and how we think about this. So if you look at discrete touch and discrete display drivers, they're typically on smaller screens or were on smaller screens back in 2020 and further out time frame, 6 to 8 inches. And the content is somewhere between $4 and $10. As we think about now cars that are rolling out at the moment, there are multiple TDDI circuits on these cars. There's anywhere from 2 to 3, in some cases, and some more screens there may be 1. But the average number of TDDIs that we've calculated is somewhere around 2.2 TDDIs per car. The content that, that leads to is somewhere between $12 and $25, again, depending on a number of TDDIs and ASP and so forth, the screens are bigger, you're talking about 8 to 14-inch screens or sort of the state-of-the-art today. If we look out in time, we're starting to see that's where the designs are happening today, much, much larger screen sizes. You're talking about what we say pillar to post. That means it runs from 1 edge of the car from the driver's door to the passenger door, these huge 20-plus inch screens I was just in China, Martin, I was talking to Martin a minute ago. He was just in China, Saleel and I just went, all of the cars that are coming out in China have these pillar to post type of displays. And we expect, and we're starting to see that now U.S., Japanese, European automotive makers roll those out. Those use anywhere from 3 to 6 TDDIs, and then there's a smart bridge on top of that, so you're talking about content opportunities for Synaptics in the $20 to $30 range. So much more significant content as the screen size goes up. And that kind of brings me to this concept. We talked about this, I think, starting at CES of this year, which is the smart bridge. And what the smart bridge really is intended to do is to deliver OLED type performance on an LCD screen, that's the idea. And so you can see -- LCD has inherent advantages in a car. It's got a longer lifetime. It's got lower cost. It has lower power. What it doesn't have is the high contrast ratio that you could see today on your mobile phone. The whites and blacks, the range between white and black actually isn't that -- there's not that much dynamic range. What we're able to do is apply a feature that we call local dimming. And that feature essentially brings OLED-like performance to LCD displays. That's the idea. So you can kind of see it here. We've kind of -- we've modeled what an LCD screen without local dimming looks like on the left and 1 with local dimming on the right. And the idea is clearly that you're now getting your whites to look a lot whiter, your blacks to look a lot darker. You are really sitting on top of OLED performance with this local dimming feature. We have local dimming advantages, significant local dimming advantages. We are able in this automobile to deliver a bill of material savings of more than $10. So we have a very, very distinct advantage. We're able to give higher ASPs to our smart bridge than competition. We are able to deliver that because ours is -- essentially reduces the number of LEDs that you need in an LCD display by a significant order of magnitude thus saving the manufacturers a lot of money, and we're getting design-in traction as a result. So this really is our effort, as I said at the outset, to kind of mute the presence of OLED displays coming into the automobile and extend our content opportunity in auto fairly significantly. We are #1 in auto TDDI. We've talked about that to all of you over the last handful of earnings calls. We've got design wins with 25 different carmakers. Almost every single one is using our products. In at 25, there are 50-plus different models that use our TDDI. So we have a very, very, very strong presence here. You can see 2 of the most recent cars that have rolled off the production lines that use our TDDI circuit, one from Lucid, of course, e-vehicle and then Mercedes-Benz. This is not something that's necessarily tied to electrification in any way, shape or form. Obviously, electric cars tend to have bigger displays. So we will do better there, but we can fit just as well with gasoline-powered internal combustion engines as we do with electric cars. So the auto section is relatively brief. Again, provides that bridge that we talked about in the bubble chart. I wanted to bring -- oh, I wanted to just talk for a minute just about where we are in ESG, pretty important subject. We are a fabless semiconductor company, not a lot of heavy manufacturing. We still do adhere to climate targets. We've got internal climate targets. We're powering a lot of our facilities off of clean energy now. You can see we've got some energy-efficient operations. All of our North American power actually is sourced from clean energy. And from a social perspective, we obviously think about our supply chain, and we have a socially responsible supply chain. We also have a culturally-diverse workforce. We're very focused on that. particularly balancing the number of women. It's very difficult to do in an engineering company, but we've put some significant strategic efforts in terms of growing our percentage of female employees. And then finally, from a governance standpoint, and this is probably fairly significant. We have in the latest proxy, we talked about this, we've moved away from a staggered board toward a universal Board. So our next elected class starting next year will be elected once per year, giving everybody an opportunity to vote on our board on an annual basis rather than -- we have -- today, we have a classified Board with 3 different classes. So that's a fairly significant change from a governance standpoint. Okay. I wanted to introduce Dean. Dean is probably the star of the show. He's going to roll out our new financial model. And obviously, Dean and I have been together for the majority of the recent run at Synaptics. I think, obviously, he's been a great partner for me. I think a lot of you trust and listen to him, he understands the business probably better than most CFOs. He does a really, really good job explaining where we are. But with that, I'll have Mr. Butler come up and give us a few words. All right.

All right. Thank you, Michael. Let me give you my perspective on the financial underpinning on what the company is and where we're taking the company. First, I think you actually have to start and route yourself in the facts of where we've been and what we've been able to succeed. One of Michael's early points was the team that we have and putting together all the right ingredients for the go-forward IoT that we're pursuing. Here, I think it's really important to understand the company has grown its IoT business in a super successful way, 30% compounding over the last 5 years. It's actually a tremendous growth rate and a super success for the company. What also is important to understand is that is done in a very financially disciplined way, growing the gross margins from the 30s to low 60s. I actually went through and searched all U.S. publicly listed companies over the last decade. And in fact, I can only find a handful of all industry companies that improve their gross margin anywhere close to this. This is just super. And really what's underpinning is market select. So market selection is vastly important to the success and financial underpinning of any company, but specifically what we intend to focus on. Michael talked about the history of the company going back in time, first starting with PC, then moving into mobile and then now more recently into IoT. Over the last 5 years or so, we've moved this every year in the right direction. 2019 when Michael and I first joined the company, IoT was about 21% of our sales. Most investors, I think, even at that time would rightfully call the company largely a mobile phone focused company. Michael and I joined, we said, we don't think we can build a sustainable company in just mobile phones or just mobile phones and PC, we needed to find a way to diversify. We needed to find a way to grow, and we needed to find a way to generate significant profit upside than what the company had historically presented. Hence, the selection of IoT. We've grown that to 70% of the sales. We just completed our last fiscal year, fiscal 2023. 70% of our sales actually come from our IoT-based products. It's a tremendous success. I mean I don't know of many companies, specifically in the semiconductor area that have made such a massive turnaround in the focus of the company and delivering on its targets. What is important to understand is the structure of your end markets. What is the structure? And why do you select certain end markets? What benefits or detractors come with that focus? I think of the company in these 5 buckets. And these 5 buckets actually come with a very different characteristic of its end customer diversification or concentration. First, starting with traditional PC makers. Really in the world, there's basically 3 PC OEMs that produce something like 97% of all the world's PCs comes from 3 OEMs, super concentrated, mobile phones, very similar. There's kind of about 6 names that produce almost all of the world's mobile phones. Now as you start going right on this chart, automotive is a great business. It's going from mechanical to digital. That's why a lot of semiconductor people like it. But there's really only sort of 20 to 30 automotive OEMs. It's a big market. They sell lots of cars, a lot of content, great expansion for semiconductors. Then you go into enterprise. Saleel talked about enterprise presence. Now you're talking hundreds of customers. Finally, as you get broader and broader, what we think about in IoT is really core IoT, traditional IoT businesses. Now you're talking thousands, if not tens of thousands of customers. By the way, every logo on this chart is actually a Synaptics customer. So we've already been moving in this direction for quite some time. And what I want to stand up here today and say what we're intending to focus on is continue to move right. Going forward, we are going to reclassify the way that we're reporting our revenue. We're introducing a new category to the investor base, 1 we're calling Core IoT. Let me just give you a quick definition. Core IoT, it's everything Venkat and Vikram talked about, it's wireless, it's processors. Huge TAM, huge success to date, ways that we can move the company forward in a significant way. The other category is the remaining portion of our current IoT business, we're going to call that Enterprise and Automotive with 1 nuance, actually, our PC business today is actually going to wrap into this enterprise and automotive bucket. Why? Predominantly, our PC sales, Saleel talked about it, largely as a commercial PC exposure. So what we want to do is represent the investor base, here's how to think about our enterprise exposure. Many of those customers and end markets move at a similar rate. Finally, we'll retain our mobile business that we break out today, that has no change in its definition. Largely, we're focused on touch controllers for mobile phones, specifically OLED-based mobile phones. And this is important for tracking. So I've talked to a lot of you either here in the room or others that are on the webcast. How do we track Synaptics business? How do we track Synaptics progress? How do we get to the $1 billion target? How do we measure that we're going to get there? And every quarter, I can see progress. Every year, I can see progress, I can start to put out milestones on where we're going to be. Look, Michael and I actually, we also wanted to talk more openly about our progress in wireless, about our progress in processors. This allows us to do that. So this bucket, core IoT is going to be the core focus of the company going forward. Why? It is, by far and away, the largest opportunity ahead of us. You heard from everybody on their SAM expectations, growing and accessing new markets. Of the $38 billion, the vast majority is core IoT. That is the opportunity for the company. The company will continue to do well in its enterprise businesses, its automotive businesses, its mobile businesses, but they just don't offer the same level of upside. They don't offer the same level of structural end market growth rates that this core IoT business does. So the key going forward is how do we move forward and take advantage of this huge market opportunity ahead of the company. It's called core IoT and what we want to do is allow everybody to track that going forward. What does the growth look like? So this is specifically focused on this new core IoT bucket. The important thing to know is it's going to have tremendous upside but it doesn't have to rely on solely new products on solely new end markets. The blue is all of our existing products in core IoT. So core IoT today, if nothing else happened, we didn't take out any more devices, we would probably be able to execute 15% to 20% growth on what we have today. The upside is tremendously higher than that. The upside is 25% to 30% growth if we include all these other buckets. But the existing products, right now, our sales funnel has actually increased on those existing products, just the bottom blue by almost 30% year-on-year. Our sales force identified, 1 and tracking new qualified opportunities 30% higher this year fiscal '23 than what they won in fiscal '22. So you already have an underpinning of all of our existing business to enable this growth. Now to accelerate from there, we're adding in a number of new product areas, WiFi 7 expansion, specifically in the high-performance wireless space that Venkat talked about, broad market connectivity, Venkat talked about that. There's overlap between broad market connectivity in our processor business as well. The new IoT processors will add some incremental growth. It will probably take just a little bit longer in the market. So I think what you'll see is wireless business accelerate first and then processor continue to carry that going forward at sort of year 4, 5 and beyond is what our expectation is around the processor set of businesses. When I think of our growth rates, I think about core IoT as being the dominant grower of the business. We talked about a huge SAM -- a huge SAM opportunity. The market itself is probably going above 12%. We think we can double that. We think core IoT is probably going to end up growing over this time frame, something in the range of 25% to 30%, a significant upside. Core IoT is likely to become roughly half of the business. I think it's about 45% of the business core IoT, in kind of the '28 time frame. Our enterprise and automotive business is additional 45%, so kind of a balanced view between those. Enterprise and automotive, it's going to grow kind of mid-single digit, 4% to 6% is the way to think about sort of an enterprise class business. Mobile, probably is the balance, 10% maybe less than 10%. The mobile business for us, remember, it's OLED-based phones, it's touch controller and OLED that is likely a 3% to 5% sort of growth rate over this time frame. When you blend the math combined Synaptics should grow in the 10% to 15% compounding over this time line. So the important takeaway is how to track the growth, what's going to come from growth? It's called core IoT, and that's what the company intends to focus on for the next several years. Gross margin. I get a lot of questions about gross margins, hey, how does this new plan tick and tie to gross margins? I continue to believe 57% is the right gross margin target for this business. It's a little bit of a balancing act. Our enterprise business, and I've sort of spoken about it before, generally offers a little bit higher gross margin, higher than our corporate average, certainly today, core IoT business, probably a little bit below the corporate average today, mobile's down below that. So when you balance these 2 for rough math, half coming from core IoT and half coming from enterprise, you end up at a result blending in this similar 57% range. Certainly, there's ways that the teams can upsize with new products and new capabilities, higher performance. Saleel talked about the upside in ASPs and a lot of the enterprise area as new innovations come on to market. But for now, we continue to believe 57% is the right non-GAAP gross margin target for this company, and we think we can execute to that over the long run. Inorganic investments. So it's something that I think we've done well as a company. Michael presented the long-term history of the inorganic activity of the company. The company has a stellar track record in all of its acquisition activity. Even going back to, hey, it's mobile phone acquisitions. Hey, things around mobile phone, actually paid us super well. The company did well. Over the last 5, 6 years, the company has been investing in IoT assets. Those have paid off in a big way. Well, I get asked a lot, hey, Dean, what are you looking for? What will help your IoT growth going forward? There's sort of 2 categories of things that we look for in an inorganic business areas. First is things around core IoT. What can help us accelerate? How do we get to this growth rate faster? How do we get access to new technologies? How do we penetrate faster into the market? Some of those things might be looking for further scale around our processor business. Opportunities that give us additional access into industrial. Industrial is an area that we have very little exposure to. But in fact, I think a lot of our products have a great fit. We just don't have the greatest access in the end market. So things that will access those markets to be very important for us and things that will help us go broad, right? So today, we've been on a journey of going more broad on our end markets, our end customers. But we also look for ways to continue to broaden ourselves to go broad market, not only from a technology and product standpoint, but from a customer, a go-to-market sales standpoint. That I think will help accelerate the company going forward around core IoT. Second thing that we look for has a little bit different filter to it. We continue to look for things that will help us actually in our enterprise and automotive businesses. It's a not as fast as growing market as core IoT, but it is the breadwinner of company. It's still going to be roughly half of the business at 45%. We look for things that, hey, can expand our bill of material, hey, how do we get deeper with customers, how do we get more semiconductor content with the customers we have. And then what things can we acquire that adds. Hey, accretive to either our growth expectations for enterprise or just earnings accretion, which in the enterprise world, hey, it's much more stable, we can predict. We have great customer relationships. We can largely make things more accretive, being inside the Synaptics portfolio than they are sort of on a stand-alone basis. Balance sheet. So the balance sheet is super healthy at Synaptics. Like I said, we just ended our year 2023. Our current net leverage 0.2x. On a gross basis, about 2.2x. So what we want to do is use our balance sheet in this priority, use the balance sheet to continue to invest in ourselves. Number one is organic growth. We have to be successful in deploying our engineers in wireless and processors to enable this 25% to 30% core IoT growth rate. That is our #1 focus, actually bring that to market, fuel it, fund it, whatever is necessary to actually continue to push forward. If I look over the past 5, 6 years, we've actually had a great return on our engineering. So if you take hey, the total R&D dollars that the company has invested, hey, what's the profit return that we've gotten off of those R&D dollars? It's actually a 16% return. It's pretty good. We've done a number of different inorganic deals. Michael talked about a few of them in his remarks, we continue to look for inorganic opportunities. So that's priority #2. Priority #3 is debt management. Today, we've sort of tried to balance between having leverage on the balance sheet to accelerate growth, but then actually delevering as soon as we can so that we can continue to operate a very clean balance sheet that way if we -- the right strategic opportunity came up, category #2, that we are in a position to leverage our balance sheet and actually take advantage of any strategic acquisition that might be there. Finally, in a balancing act is #4 is actually share repurchases. And the company has been active in share repurchases over the years. This past year, we bought back approximately 2 million shares. We run about 40 million shares outstanding, so it's something about 5%. Over this time frame, '18 to '23, we've purchased 425 million of shares back off the open market. That's been about a 10% compounding return. So all of these items sort of balance as you move through time. What we strive to do is have the maximum amount of flexibility between these 4 categories. So as you can see, we sort of flex up and down depending on what makes sense, whether it's market conditions, whether strategic assets that might be available on market or what are we investing in ourselves organically. Finally, updated financial model. So first, let me say, our financial model as it sits today, is super. We have a financial model that enables growth and enables that to drop to the bottom line. When I think about Synaptics, Synaptics 1.0, it's about smartphones and PCs. Synaptics 2.0 really was around pivoting to IoT and improving our profitability. Now here Synaptics 3.0, and that's about accelerating our growth and delivering on an already well-established financial model. So the move that we're making on our financial model is larger around top line. So June 2020 was our last Analyst Day. Michael and I stood in front of you, and we said 4% to 6% is probably what the growth rate of this company is. Remember, at that point in time, we're still largely in mobile and PC. As IoT traction continue to take foot and we've moved through time, we updated that financial model in February of 2021, and we said, we think we're going to significantly outperform that. We think we can sustain 8% to 10%. Now today, our new expectation with the growth engine around core IoT, 10% to 15% top line on a total blended. We think largely that growth as we continue to pursue it into the future drops down to 30% or better non-GAAP operating margins. This is going to be a tremendously profitable business with tremendous scale at the top line at this growth rate. At the end of the day, the clear takeaways of the company are actually very simple. There's a huge opportunity for the company to play in this core IoT market. It will be a significant growth accelerator for the company going forward. And we've already started the groundwork to get and deliver this. Whether clear or not, the enterprise leadership that Saleel talked about in his presentation, underpins all the financials that we have. It's a very steady, very profitable business. It's not the highest grower, but it funds everything else that we need to do in the company. Enterprise funds core IoT. That's the way that you should think about it. We have a proven track record of success, both in profits and margins, in market selection, also in terms of revenue growth on our selected markets. This team has delivered in our expectations and we'll continue to deliver for the investor base. And finally, it's a very compelling model, actually, double-digit growth at 30% or better operating margins. It's a super business to be in, and I think the whole team here is actually excited to execute on this road map. So with that, we're going to transition into Q&A. So let me just ask to bring a few chairs, give us just a second. We'll transition to Q&A, and we're happy to take your questions from the room. Also if there's questions online, you can submit them via e-mail at irsynaptics.com. One second. We're just going to get a couple of chairs, and then we'll ask the management team to join here. So we'll have the management team join and I think Munjal will moderate the questions.

Please raise your hand and please state your name and company for the audience and the webcast. We'll go with John Vinh right here.

John Vinh, KeyBanc Capital Markets. Maybe a question for Vikram on the processor business. Can you clarify who are the existing incumbents that are in the market today? And maybe what specifically are you seeing that is giving you confidence that you're going to be able to enter this market and gain market share? And maybe related to that, maybe a question for Dean. You guys talked about being able to go after this market with a modest level of investments. It doesn't seem to me, it seems modest. I mean you're tipping out new -- 2 new processor families at 12 nanometers. The gross margin profile, I don't know, maybe on -- seems somewhat competitive depending on the market that you guys are going afterwards. And then you're also building out kind of a new software operating system with Linux. So maybe just talk about the level of investment you think is required to go after this.

Okay. So great question. So in terms of the competitors or other suppliers in the market, I mean, I think they are the usual suspects, right, who are operating not only on the high end and I'll name a few, like NXP, there's TI, there's RENASYS and so on and so forth. And then as you go towards the -- to the lower end, you've got a whole range from Silicon Labs. You've got Microchip. Infineon is also playing in that space and so on and so forth. So it's a good question in terms of all these incumbents, what is our opportunity. And the way I see it is fundamentally 2 things. Our vision is to build out an end-to-end portfolio, which not everybody has. If you actually selectively go and look at each of the competitors, they straddle -- because of the technology pieces they have, they straddle only certain areas or they have ambitions to go one notch up. But if you look at it end-to-end, very few do it. I would actually think that NXP is the only one that actually does it in a meaningful fashion. So that's one aspect, thinking about it from an end-to-end point of view. The other thing is I truly believe that AI is disrupting things. And we have gone and analyzed specific verticals where the attach rates of AI are increasing. And that fundamentally gives an opportunity for newer incumbents to come in as a fresh perspective. And what I mean by that is I think I touched upon it in my presentation, customers are looking for ways to differentiate in AI because they are worried that the end products are not going to sort of keep up in that sense of the trends. And so they're looking for expertise in that context from the suppliers. And if you look at some of the existing players, they have a traditional approach on how to go after these markets. They have made a lot of investments and the way they -- even the channel and their partners and so on and so forth and how they approach it is pretty standard. It's baked in. So given that the trends are happening where it's disrupting how customers are needing the attention to bring the right IoT products, I feel it gives us an opportunity. The other aspect is this whole pairing thing with connectivity. I think it's a huge deal because we do have really top-notch connectivity on the high end and Venkat's plan, you heard about taking that performance and going towards the lower end of the broad space. So that pairing aspect, not everybody can talk about and say, except for a very few. So you start filtering it with all of these caveats, then you start seeing, okay, we really do have an opportunity. And as far as the investment piece, I'll just say this, I'll just remind everybody, I think the focus is to take what we have today. And if you really look at it, we've got a broad portfolio of processors on the higher end of the spectrum. And what we're trying to be is very thoughtful about taking those and positioning it with the right kind of software, you've mentioned Linux. That is an investment from our side, but it's a -- our Android work is based a lot on Linux. And so what we're trying to do is trying to recreate the software profile in terms of how we do the development inside the company to be able to leverage the existing work, but also be able to address the newer markets in a very modular fashion. So it's -- think of it as just sort of taking what we have based on what we have and just repartitioning it to make it more modular. And that's how we are trying to build on it. As far as the new products are concerned, like on some of the newer stuff, Venkat is already investing in the connectivity MCUs and we are collaborating already very closely. So how that actually fits in with the context of -- in the context of this overall family view is something that we make sure we are consistent with. So it all fits and the same thing what Saleel has talked, Saleel sorry, you're here. So it's -- it is based on being incremental, and we are going to be gauging ourselves every step of the way. The first step is to actually take what we have and with the high end MPUs and go broader and then we start seeing how we move further along the road. But hopefully, that gives you a sense.

Yes. John, let me just give you one little bit on my take on. So the investment -- yes, we'll continue to need new investment in processer and WiFi. That's actually already been happening. It's happening under the hood, is really in the terms of prioritization. Venkat talked about in his presentation. He's actually already taped out 4 new devices in WiFi, and that's without moving any of the operating expenses of the company. While processor longer run is actually a heavy lift, we're not starting from 0. In fact, some of the set-top box processors that we do today are pretty heavy lift. And actually, operating expenses, there is kind of the super set. So really, what we think at least in the near term, we can continue to operate the company at the same OpEx level. Look, as top line gets delivered and we go broader and broader across customers, yes, certainly, we'll have to put more OpEx in. But today, we don't think that's the case in the near term.

Let's go with Chris in the back.

Chris Rolland, Susquehanna, thanks so much for putting on the day guys. So as I think about the presentation, my takeaways are you've increased your revenue from, I think, your old was 8% to 10% growth, now 10% to 15%. I guess my first question is what are the biggest products that are lifting this growth rate? And then secondly, you have more growth. It seems like you have more sophisticated products. You have better end markets in terms of gross margin that you're moving into. Why not raise your gross margin number? I would have thought the moving parts here would have been maybe an increase in OpEx as a percent, but with that, a corresponding lift in gross margin as well.

Do you want to take some of the product sir?

Okay. Let me just sort of level set around what the product set is going forward. Really, I think what to expect around gross margin, the uplift in growth is really a business that we're running from what's already established. So core IoT largely is going to come from early innings around a lot of the wireless products. That's been growing tremendously for the last couple of years. We think that probably has the first leg of growth. Then actually layers in sort of the combination between wireless and processors and some of the high-end processors. Generally, the way to think about that core IoT bucket would be kind of a mid-50s gross margin bucket and enterprise sort of being in probably still the 60s. When you blend the 2, you still come out to kind of high 50s. Now if there's a way that we can get all core IoT up to the same gross margin level as enterprise-based customers, then I think you would see an upside. But I think today, what we're focused on is delivering sort of the near-term products to deliver the upside in growth. We really are striving to push that growth that's been identified through all of our sales in the last year with the sales funnel increasing 30% on our existing products. That's really what we're trying to underwrite. We're trying to underwrite sort of taking that identified funnel and getting that all into market. Longer term, if we can keep moving up in gross margin, if we can keep moving up in our capabilities, in our breadth, I do think you continue to see upward expansion. But today, what we see is actually a significant revenue upside relative to, hey, a reduction in operating expenses or an increase in gross margin. I think the model is actually right. It's actually a very good model, preexisting and adding additional growth onto it as the way to think about it, Chris.

Thanks, Chris. Let's stay in the back with Krish.

It's Krish Sankar from TD Cowen. I have a question for you, Dean, just to follow up on the gross margin part. I understand as you go from high performance to broad market and other opportunities, there's probably some investment required. But the flip side, also in the last couple of years, you've seen some of your ASPs compress. So I'm just wondering if Synaptics has this unique portfolio of products, why can't you get a better ASP and therefore a better gross margin profile?

I mean, certainly, Krish, our expectation is to always seek out, hey, better ASPs, higher profitability that we can generate. I think if you look across semiconductor landscape, you don't find a whole lot of semiconductor companies that are 57% or greater. I mean there are certainly some, there's a handful. But I think if you look at in the totality in its aggregate, this is actually considered one of the higher profile gross margins across all of semiconductors. Certainly, there are some businesses that are much higher. When we benchmark ourselves against some of the other peers that are focused kind of pure-play IoT applications, they're actually also in this high 50% gross margin, which also leads back to, hey, we think for the growth rate for the customer set, it's likely to be kind of this high 50s, so 57%. Certainly, if we can deliver upside, that's always our goal. I mean you heard it from almost all the general managers today. Actually, in almost all areas, there is ASP uplift. And really, it comes down to, hey, that product mix over time and how that blends. But I do think it's actually a great target to be in, Krish.

Thanks, Krish. Let's stay in the back with Jason.

Jason Getz from Mizuho Securities. Kind of shifting gears a little bit here. There's been some more recent headlines with China-U.S. issues kind of moving into the handset market at this point. Do you expect to see kind of any impacts there maybe the possibility of this even leaking into more IoT or PC markets?

I think for the -- on our mobile side, right now, we're enjoying a relative period of strength. So we've sort of talked about in recent calls, where we sit relative to a bottom. I think in the handset area, it's been pretty strong. And where we have been surprised, I guess, is that our touch controller in particular, which is the best in class, there's no 2 ways about it. But there are competitive Chinese offerings. We've continued to enjoy very, very high market share on the Chinese handsets. We see very, very good design traction. We see very, very strong bookings, certainly into the next part of the calendar year, no end in sight. So it seems that, I've got a report today from the New York Times talking about the Chinese market. We are not seeing any dissipation right now in our mobile business. In fact, it's a pocket of real near-term strength.

Maybe I'll just add one on China. Largely, our China-based customers, as Michael is rightfully talking about, are kind of mobile based. We're not dependent on China for a lot of our IoT-based customers. I put up a long laundry list of IoT customers. Very few actually that we're doing business today are sort of China-based IoT customers.

Maybe I'll just talk about Lenovo, which is the Chinese PC guy. A lot of their business, we are engaged, as Dean said, is on the commercial, which is ThinkPad and ThinkPad that is mainly run out of Raleigh and Japan. So that's where we are aligned. And if it's a ThinkPad, it's U.S. government, it's not been a big issue for us.

Thanks, Jason. I'll take one -- we have an online question here. Maybe Venkat t, you might be able to -- you talk about 4 new SoCs coming out, you talked a little bit about WiFi 7. When do you expect these SoCs to come out in terms of the 4 new and the WiFi? So when do you see these products coming up?

Sure. So I think out of 4, 3 are already started to sample right now. And the fourth one, we will sample in about 2-3 months. And the WiFi 7, as I mentioned, we will actually introduce that in the market by end of next year calendar year. So overall, I think these are all kind of phased out. The first 3 products are more WiFi 6, 6C and Bluetooth 5.4, and then we will actually introduce the WiFi 7. That's the plan.

All right. Thanks, Venkat. I think I'll stick with online because I have these questions. So I think this is along what John sort of asked in terms of investments. It feels like the company is investing in wireless and processors. What are the synergies that you can capture in terms of your -- Vikram, talk a little bit about -- but the question is, what are the synergies you can capture in terms of go-to-market? And do you need to invest in both the areas?

Yes. I mean I started off the presentation talking about how we are going to be literally join at the hip on in terms of the markets we address. I think it's a fact. I mean, you look at any IoT system, there's a processing element and a connectivity piece in it. And in some areas, Venkat already has traction where we are going to actually leverage those conversations to pull in the processor. In other areas where we have a strong pull in the processes, whether it's existing verticals or adjacencies, we have been pulling in the wireless, I expect like those synergies are going to come naturally. And as far as finding out more synergies in terms of -- so that's on the go-to-market and just customer interaction side. On the product side, we -- on the connectivity MCUs, especially, we are collaborating on trying to get the best-in-class, low-cost, most power-efficient integrated connectivity MCUs. So that's not an issue. And the other thing that we do on the higher end of the spectrum from the processor side is make sure that the connectivity works seamlessly and in a -- works better scenario. So there's lots of synergies that are happening under the hood -- already happening under the hood, and we hope to accelerate more as we put our focus on these core IoT markets.

Thank you, Vikram. Let's go with Quinn over here up in the front.

Quinn Bolton with Needham. I wanted to follow up on Chris' question on the gross margin for the core IoT business. Dean, you had a slide where you said PCs, you have 3 players; mobile, you have 6; core IoT, you have thousands of customers. So very fragmented, probably not a lot of customers can put pricing pressure on you. Yet, you've got a mid-55% gross margin target, which sort of sounds low, and it sounds like maybe the answer is that it's just very wireless, heavy initially. But longer term, as you get more processors or processor plus connectivity, do you think there's upside to that 55% or mid-50 margin?

Yes. I would say, Quinn, one, were about this time frame today. I think beyond that, there is probably upside. Processors does take longer for us to cut into the revenue. Generally, those do hold better gross margin profile than sort of a pure wireless. Even within wireless, there's high-performance wireless that actually does very well on an ASP gross margin basis relative to a broad market, which is still very good, is reasonable. But the mix between that dynamic, we do think that totality in this time frame is probably mid-50s. Certainly, there's upside to that in terms of, hey, whether the mix between high performance, broad market processors plays out as we sort of have it outlined here, whether we get faster traction with some of the higher ASP devices, whether we can work on the cost side of the structure as we improve the process node generation movements that we're working toward. So I do think there's a number of upsides that can be delivered. But I would say, again, to reiterate, the customers being distributed, I think, allows for this mid-50s sort of gross margin on core IoT. I think if you selected core IoT and you said, Hey, I'm going to just go after just Tier 1 sort of very large customers. I think the gross margins generally are not mid-50s. So while we're moving in that direction sort of over time, I think you will see them sort of move in the right direction. But this road map is sort of a multiyear road map. And what we want to make sure you, as investors, that we can sort of deliver to the mix as we see it rolling out and going forward. Another thing that although we talk a lot about the core IoT, the enterprise business, that hasn't stopped in its innovation. Our expectation is, while that doesn't move as fast in terms of mix, that, that we continue to innovate and put some higher margin, higher ASP devices on market over time. So I would say, to me, there's probably bias more upside than downside. But if you want to play down the middle, kind of this 57% seems like the right your target set, Quinn.

And then just a follow-up on the processor side. You mentioned you got to get the software right to be successful. Is that going to be one common SDK for the high-end MCU -- sorry, MPUs, MCUs and the lower end with connectivity, is it going to be 3 separate software development kits. I mean, obviously, is it all one ISP or are you going to have different introduction sets for the different MCUs and MPUs? Can you just talk about how do you get the software right with that broader range of processors?

Yes, I understand. It's a great question actually. And I think I'll answer the last part first, which is. I think given that we're going to allow our customers to program on our software, basically, we're going to be giving them hooks to differentiate. We're going to go with industry standard cores, which have a well-established ecosystem. So base stuff is what we are strongly leaning towards, I'll just say it that way. The other part of it is, we look at the software in 2 lanes. There's the Linux android lane and then there's the RTOS lane. The RTOS lane covers the high-performance MCU and the connectivity MCU piece while the Linux android is on the MPUs. In -- within those lanes, we are going to unify the SDKs and we talk about unifying it so that, again, the experience for our customers within those lanes should be consistent across the family. So anybody programming for one MPU should be able to retarget very easily to another MPU, same is true on the MCU side. If there is an opportunity for us to even go further on unifying the SDKs across the board, we will consider that. But for now, we are looking at it as to do.

Yes. Let's go with Gary here.

Gary Mobley with Wells Fargo Securities. I had a question for Dean and one for Vikram. Dean, you've -- the company put out a press release earlier today endorsing the $230 million guidance revenue midpoint for the September quarter. Is that to mean that consistent with what your messaging was in the earnings call that this represents a cyclical bottom and perhaps by the fourth fiscal quarter of this year, you could be shipping to actual end customer demand? And then for Vikram, you just endorsed the idea that you're going to continue to standardize on ARM for your processors, but the trend is to do parallel development for both RISC-V and ARM. If you were to do that, what would that do for your R&D budget and the scalability of that business?

We'll take them in a while, I'll sort of take the first part.

Yes.

Yes. So this morning, we put out a press release saying we're reaffirming our guidance that we gave for the quarter which means in all elements that we've given clarity around our quarterly guidance, we continue to believe all of our midpoint guidance ranges for the quarter are still valid. Our range is on the revenue, our range is on gross margins and EPS ranges. They continue to feel valid. We don't have an updated opinion on the return from some of the excess inventory bleed down. We continue to think we're actually on the right glide path to burn inventory in channel. Last quarter, June quarter, we burned sort of consistent with what we were thinking. As we guided in September quarter, that continues to be our thinking. So short answer, we think we're on the right path, Gary, and we are reaffirming our prior thinking that we gave during the earnings call.

So on the question on RISK-V versus ARM. Again, it's a great question. We debated a lot about it. And I think one of the things that we feel is given that we are trying to go after these broader set of markets in the core IoT, we want to go with something that's well understood by our customers. We don't want to risk it. And that's honestly the approach we are going to take right out of the shoe. Having said that, we do think about cores that we're not exposing to customers as potentially going risk by. And to your question on development, we are trying to standardize on our cores so that we are reusing investments across the company. So we do have RISC-V that is being used in certain areas today actually. And ARM is dominant, to be honest. And so we will look at it and see what's the best way to mix and match as we move forward.

We maybe almost out of time. We'll take one last -- sorry, we'll take one from Kevin. Kevin, go ahead.

Kevin Cassidy from Rosenblatt Securities. Just a question on your wireless business. You're doing great in the high performance now. What's the go-to-market strategy as you go to broader markets and lower end? Are you selling a lot to module makers right now and do the module makers help you go down into those other markets?

Yes. I think, Kevin, that's exactly the approach we are planning to take. As you go to the broad market, our initial plan is to actually leverage our existing module makers and also add more module partners. I think that's going to be our first foray into the market and then build on a bigger channel plan as we go along. But I think that's where we are currently targeting. We added about 2 new module partners in the last 6 months. And we are in the plans to add 3 or 4 in the coming 6 to 9 months. So I think that's going to -- we set as the platform for expansion into a broad market. And then later on, we'll actually look along with the processors use the channel to get into more industrial and other segments.

Yes, Kevin, I mean, I think it's been a recurring theme in the questions. As we look at this, I think Vikram spoke to it the best, which is we're going to continue to be measured. We're going to do -- go after things that don't require a significant amount of investment, see how we're doing, and if appropriate, we will start to build out a bigger channel. That's clear that we would need to do that to get to Dean's slide with thousands of customers, we would need to do that. So that will happen as long as we continue to track and show progress, which we think we will. But right now, what you're hearing from the team is, look, with a modest investment with a metered investment, module partners on Venkat side and the idea of going after very nice adjacencies on Vikram side, we think we can do this and continue to make progress without a big significant spend on channel.

I think we'll end with that, Michael. So we are almost out of time. So thank you all for coming today. And thank you, Michael.