Broadcom Limited (NASDAQ:AVGO) Q3 2019 Earnings Conference Call - Final Transcript
Sep 12, 2019 • 05:00 pm ET
Yes, sir. [Operator Instructions] Our first question comes from the line of Harlan Sur of JP Morgan. Your line is open.
Good afternoon and thanks for taking my question. Good to see the business bottoming here in the second half of the year. Hock, you know we continue to hear that Tomahawk 3, Jericho 2 are seeing strong demand for the 200 gig and 400 gig cloud networking adoption, also your revenue and design win pipeline on compute, networking and security off-load acceleration ASICs is pretty strong with guys like Google, Facebook, Microsoft, etc. Last earnings call, you had anticipated full year double-digits growth in your datacenter networking, compute off-load businesses. Question is, are you still tracking to that and despite the muted growth outlook for the overall business looking into next year, given your design win pipeline, do you expect continued double-digits growth in the datacenter networking and compute off-load looking into next year as well?
Hock E. Tan
I guess, the bottom line answer is, our outlook which we shared with you much early on has not changed materially at all. Yes, we do see continuing improve -- ramp of ship deliveries into hypercloud gains on those various networking, as well as computing off-load silicon. And that hasn't changed and that has in fact given quite a lot of buffer to otherwise been a fairly uncertain and difficult markets at this point.
Thank you. Our next question comes from Vivek Arya of Bank of America. Your line is open.
Thanks for taking my question. Hock, you started mentioning something about next year and I just wanted to flush that out. I know you're not giving next year guidance per se, but on the positive side, you're saying business is bottoming, you outlined a number of product cycles or so, but then you sound a little bit cautious on just the environment. So I was curious how you are thinking conceptually about next year, pluses and minuses. And then as part of that, if you could also give us some indication of how Huawei figures into that both kind of in the near-term Q4 and next year? Thank you.
Hock E. Tan
Well, you actually answered my question for me in many ways, which is you're -- you're implying -- which is correct that the US-China trade dispute is turning into an extended affair with lots of twists and turns and uncertainty. And we are assuming things on our conditions, environment is not going to change from what we're seeing now. And if we make that assumption next year, you probably see a very uncertain 2020. But as we sit here right now and we probably have another three -- at least another three months before, we probably give you a much more clear 2020 guidance. But as we sit here right now over the rest of this calendar year, if not fiscal year, what we're seeing is, you're right, which appears -- it appears we have hit bottom at least in the semiconductor.