This is paraphrased from the Conference Call:
Turning to our June quarter, we expect revenue to be $800 million, up 36% year-over-year. At this revenue level, we anticipate gross margin to be 48%, representing a sequential increase from 46.7%, and that’s driven by a combination of growing adoption of our products, increasing global scale, and enhanced vertical integration and our ongoing operational initiatives. These factors have created new baseline for our business model, providing a path to continued margin improvement ahead. And all of this puts us on a firm path towards our target of at least 50% gross margin for the company.
This is crucial!!! The doom and bloomers say, “This is a chip company. Their fate is to be commoditized and have their margins squeezed to nothing.” Margin expansion means that that is clearly not happening!
Saul