Greetings, welcome to Semtech Corporation conference call to discuss the fourth quarter and fiscal year 2022 financial results. Speakers for today's call will be Mohan Maheswaran, Semtech's President and Chief Executive Officer, and Emeka Chukwu, Semtech's Executive Vice President and Chief Financial Officer. Please note this conference is being recorded. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. I will now turn the call over to Semtech's Executive Vice President and Chief Financial Officer, Emeka Chukwu. Thank you, Alex. A press release announcing our unaudited results was issued after the market closed today and is available on our website at semtech.com. Today's call will include forward-looking statements that include risks and uncertainties that could cause actual results to differ materially from the results anticipated in these statements. For a more detailed discussion of these risks and uncertainties, please review the safe harbor statement included in today's press release and in the Other Risk Factors section of our most recent periodic reports filed with the Securities and Exchange Commission. As a reminder, comments made on today's call are current as of today only, and Semtech undertakes no obligation to update the information from this call should facts or circumstances change. All references made to financial results in my prepared remarks and Mohan's prepared remarks during this call will refer to non-GAAP financial measures unless otherwise noted. A discussion of why the management team considers such non-GAAP financial measures useful, along with detailed reconciliations of such non-GAAP measures to the most comparable GAAP financial measures are included in today's press release. In Q4 fiscal 2022, the company delivered net sales of $190.6 million, a decrease of 2% sequentially and an increase of 16% year-over-year, and was once again above the midpoint of our guidance. Fiscal 2022 revenues grew 24% to a record $740.9 million, while EPS grew 49% to a record $2.61, or more than two times the rate of net revenues growth. The strength of the secular drivers behind our growth engines contributed to the strong net sales performance despite the challenges presented by COVID and supply constraints. In Q4, shipments into Asia, North America, and Europe represented 78%, 13%, and 9%, respectively. While this represented the ship to addresses for our distributors and customers, we estimate that approximately 33% of our shipments are consumed in China, 29% in the Americas, 19% in Europe, and the balance over the rest of the world. Total direct sales represented approximately 11% of net sales, and distribution net sales represented approximately 89%. Our distributor POS represented another quarterly record, and the business remains balanced with approximately 42%, 32%, and 26% of the total POS coming from the infrastructure, industrial, and high-end consumer end markets, respectively. In Q4 of fiscal 2022, net revenues from the high-end consumer market decreased 22% sequentially and 6% over the prior year and represented 25% of total revenues. Approximately 13% of high-end consumer net revenues was attributable to mobile devices, and approximately 12% was attributable to other consumer systems. Net revenue from the industrial end market increased 10% sequentially and 38% over the prior year and represented 39% of total net revenues. Finally, the infrastructure end market increased 3% sequentially and 14% over the prior year and represented 36% of total revenues. Q4 bookings increased 35% sequentially, and LoRa bookings accounted for approximately 3% of our Q4 shipments. Q4 gross margin increased 70 basis points sequentially to 64.5%, which represented the upper end of our guidance range and a new quarterly record, driven by a higher mix of our growth drivers that include LoRa-enabled, 10G PON, Tri-Edge PAM4 CDRs, 5G wireless, and broad-based industrial protection products. For Q1, we expect gross margin to continue to expand, reflecting the benefit of continued strength of our growth engines. In fiscal 2023, we expect our gross margins to trend higher by 100-200 basis points from a favorable richer mix of our growth platforms. Q4 operating expense increased slightly to $68.7 million, driven by higher new product development expenses. For Q1, we expect our operating expense to increase by 4% due to higher compensation expenses, which is typical at the start of a new calendar year. Looking ahead to fiscal 2023, we expect our operating expense to trend back towards our target model of half the rate of revenue growth. In fiscal 2022, operating profit grew 45%, approximately two times the rate of revenue growth, led by the higher gross margin and represented a record operating profit. Operating margin expanded approximately 400 basis points to 27.4% and represented a solid progress towards our 32%-36% long-term target model. As expected, we are seeing the strong operating leverage expected from the success of our growth platforms. Our fiscal 2023 non-GAAP normalized tax rate is 12%, slightly lower than the 13% in fiscal 2022 due to a more favorable mix of regional income. In fiscal 2022, cash flow from operations was a record $203 million, up 71% from fiscal 2021, and was 27.4% of net sales, which represented a 740 basis point expansion from fiscal 2021. This is the record operating profit and good management of working capital. Correspondingly, free cash flow increased 105% to 24% of net sales, around the low end of our long-term free cash flow target of 25%-30% of net sales. Cash flow generation in fiscal 2022 was very strong, despite the strategic actions to maintain higher levels of inventory because of strong demand and supply constraints. In Q4, we repurchased approximately $33 million of our outstanding stock, and for the full year, we repurchased approximately $130 million or 2.7% of our outstanding stock, and resulted in approximately $259 million remaining in our outstanding authorization. We expect to continue to use our cash to opportunistically repurchase our shares, make strategic investments, and pay down our debt. Q4 accounts receivable decreased 4% sequentially to $72 million, while days of sales was in line with the prior quarter at 35 days. In Q4, net inventory in absolute dollar terms increased 8% sequentially, and days of inventory increased 13 days sequentially to 146 days. We expect net inventory to remain above our target range of 90-100 days to support the higher demand and the tighter supply chain environment. In summary, we are very pleased to deliver a record financial performance in fiscal 2022 despite the supply chain constraints and continued pandemic headwinds. We are pleased to see our years of investment in technology platforms that enable a smarter, sustainable planet drive record revenues, record gross margin, record earnings per share, and record cash flow from operations. The financial model is delivering strong leverage. In fiscal year 2023, we believe the long-term secular nature of our growth engines of LoRa-enabled, Tri-Edge PAM4, 10G PON, 5G wireless, and broad-based industrial protection platforms positions us nicely for another record financial performance in fiscal 2023. I will now hand the call over to Mohan. Thank you, Emeka. Good afternoon, everyone. I will discuss our Q4 fiscal year 2022 performance by product group, discuss our fiscal year 2022 performance, and then provide our outlook for Q1 of fiscal year 2023. In Q4 of fiscal year 2022, net revenues of $190.6 million represented a 2.2% sequential decline, which was much better than our typical seasonality of 5%-10% down. We posted record non-GAAP gross margins of 64.5% and non-GAAP earnings per diluted share of 0.70. In Q4 of fiscal year 2022, our Signal Integrity product group grew 21% over the prior year and achieved another quarterly record and represented 39% of total revenues. Record demand from our PON business contributed to the growth. Our data center demand remained soft as customers managed year-end inventory. However, Q4 data center bookings increased significantly in the quarter, and we are expecting data center revenues to rebound nicely in Q1, led by growth from our Tri-Edge short reach PAM4 platform. We have continued to attain new Tri-Edge design wins across multiple geographies in 100 gig, 200 gig, and 400 gig PAM4 optical modules. In FY 2022, revenue from our Tri-Edge platform increased over 700% to approximately $14 million. We now expect our data center Tri-Edge revenues to triple in FY 2023 as more customers move to full production, and we increase our market share over DSP solutions in the 200 gig and 400 gig PAM4 segments. In addition, we are now sampling our long reach Tri-Edge platform targeted at 200 gig FR4 optical modules. These new parts approximately double our SAM in the hyperscale data center market. We are confident that Tri-Edge's ultra-low power, low cost, and low latency together with FiberEdge's higher performance, will enable us to continue to grow our hyperscale data center business over the next few years. In Q4 of FY 2022, revenue from our PON business represented another quarterly record, driven by continued strength from our GPON platforms as global demand for higher access bandwidth remains strong. While the China market continues to lead PON demand, U.S., Indian, and European service providers have all announced PON deployments, which we believe bodes very well for future PON demand growth globally. Semtech is the leading PMD supplier to the global PON market, providing the most comprehensive PON PMD portfolio. We recently announced our first 25 gig PON PMD device for 25 gig OLT applications, which has been designed to interface to Semtech's ClearEdge family of CDRs. As PON systems increase in bandwidth, we anticipate that the integration of CDR functions into PON modules will be necessary. We are also in development of advanced PMD technologies for 50G PON systems that will partner with our leading-edge Tri-Edge PAM4 platform. As a result, we expect our PON business to continue to grow over the next few years. In Q4 of FY 2022, revenue from our wireless base station business was approximately flat from Q3. We continued to win new designs for both ClearEdge and Tri-Edge in 5G base station fronthaul optical modules. We recently announced the industry's first 50G PAM4 CDR with integrated driver targeted at 5G wireless infrastructure, which is currently in field trials at several tier one system vendors. We expect the wireless base station market to strengthen in FY 2023, and we believe our 5G momentum, based on both our ClearEdge and Tri-Edge wins, should enable our wireless base station business to deliver solid growth in FY 2023. The underlying secular demand strength we witnessed in FY 2022, driven by the quest for higher bandwidth at the lowest power across all infrastructure segments, is expected to continue into FY 2023. In Q1, we expect our signal integrity product group revenues to increase and deliver another quarterly record. Moving on to our protection product group. In Q4 of fiscal year 2022, net revenue from our protection product group decreased 7% sequentially, as expected due to seasonality, and increased 11% over the same period last year, and represented 28% of total revenues. Demand from our consumer customers softened in Q4. However, as expected, bookings from the consumer market strengthened nicely, and we expect our consumer protection business to increase in Q1. In Q4, demand from our broad-based protection products grew 33% from a year ago. Our protection business continues to diversify into a broader range of segments, including industrial, communications, automotive, and IoT. As more systems designers use chips with advanced process geometries, we expect demand for Semtech's high-performance protection to increase across all market segments. Our broad-based protection business continues to grow nicely and is a major contributor to our increasing gross margins. In Q1 of fiscal year 2023, we expect our protection revenues to increase, turning to our wireless and sensing product group. In Q4 of fiscal year 2022, revenues from our wireless and sensing product group increased 13% over the prior year and represented 33% of total revenues. In Q4, our LoRa-enabled revenues achieved another quarterly record as the adoption of LoRa in low power IoT applications continued to accelerate. During the quarter, we announced several exciting use cases, which included a joint initiative with Lacuna Space to further increase LoRaWAN coverage in areas of the world without cellular or Wi-Fi. Tencent Cloud, a leading technology company in China, announced it has integrated our LoRa Cloud geolocation services into the Tencent Cloud platform. The city of Cary in North Carolina is leveraging new LoRaWAN sensor connectivity and predictive data analytics from system integrator SAS, together with Microsoft Azure, to better monitor flood levels and provide additional community services to its citizens. ICT International's precision environmental sensors are leveraging LoRaWAN to enable smarter monitoring of the urban forest based on a data-centric approach. Elvexys, a designer of innovative energy transport and distribution networks in Europe, together with Oiken, a Swiss distributor of electricity, are leveraging LoRaWAN connectivity and integration into their existing SCADA system to monitor and fix power grid failures. Also in Q4, the LoRaWAN protocol was officially recognized as a global standard by the International Telecommunication Union, ITU. We expect this recognition to enable global interoperability and enable massive scaling of LoRaWAN. LoRa's low power, long range, and network flexibility is enabling the connection of billions of sensors to enable a smarter, more connected, and sustainable planet. In Q4 of fiscal year 2022, revenue from our proximity sensing platforms softened as expected, due to lower seasonal demand following the strong first half. Global RF regulations targeted at protecting users from increasingly more powerful radios are expected to drive more stringent radio power requirements on smartphone and wearable manufacturers. We expect an expansion of these regulations in Asia towards the end of this fiscal year, which will benefit our proximity sensing business as 5G mobile devices proliferate over the next few years. For Q1 of fiscal year 2023, we expect net revenues from our wireless and sensing product group to increase and deliver another record quarter led by our LoRa business. Moving on to new products and design wins. In Q4 of fiscal year 2022, we released 10 new products and achieved 3,237 new design wins. Now let me comment briefly on our fiscal year 2022 performance. In fiscal year 2022, net revenues increased 24% to a record $741 million, driven by strength from all of our product groups. In FY 2022, we had 55 new product releases and also achieved a record number of design wins of 13,083, representing a 16% increase from the prior year. In FY 2022, our signal integrity product business grew 14% over the prior year to achieve record revenues. Global infrastructure demand remained strong, leading to record PON revenues. Our SIP product group achieved record bookings in FY 2022, and we expect our signal integrity product group to deliver another record in FY 2023, driven by strong growth from our Tri-Edge PAM4 products for the hyperscale data center market and 5G wireless base station market, and continued strength from the PON market. In FY 2022, our protection business grew 26% over the prior year, driven by our broad-based protection business, which grew 34% to achieve a new revenue record. We expect both our consumer protection and our broad-based protection businesses to continue to grow as the needs of the circular economy drive strong demand for Semtech protection products in the automotive, infrastructure, IoT, and consumer segments. We expect our protection business to achieve double-digit growth again in FY 2023 and deliver record revenues in FY 2023. In FY 2022, our wireless and sensing business grew 39% over the prior year and achieved record revenues. Our LoRa-enabled revenues grew 53% annually to a record $134 million. In FY 2022, our LoRa business continued to make solid progress on the growth metrics we have established. These metrics included the number of LoRa network operators grew to 166 at the end of FY 2022 from 150 in FY 2021. We expect 180 LoRa network operators by the end of FY 2023. The number of LoRa gateways deployed increased 146% from 1.3 million gateways in FY 2021 to 3.2 million at the end of FY 2022. We expect the number of LoRa gateways deployed to increase to over 5 million by the end of FY 2023. We are delighted with the large increase in gateways deployed globally, as this LoRa infrastructure is critical to enable the broad range of industry use cases that are emerging. Picocell gateway deployments increased over 190% versus FY 2022. This increase in picocell gateway deployments is being driven by the smart home and smart campus segments, as Amazon Sidewalk gateway deployments increased over 180% versus FY 2021. In addition, the Helium People's Network is growing very fast and deployment should accelerate nicely in FY 2023. Both Sidewalk and Helium networks should drive an acceleration in end device deployments over the next few years. In addition to picocell deployments, our macro gateway deployments increased 43% over FY 2021, driven by smart utility, smart logistics, and smart city initiatives globally. This infrastructure increase should also drive a rapid acceleration in endpoint deployments over the next few years. The cumulative number of LoRaWAN nodes deployed increased to 240 million at the end of FY 2022 from 178 million at the end of FY 2021. We expect this number to exceed 300 million cumulative end nodes by the end of FY 2023. With continued network expansion globally, we expect end node deployments to accelerate rapidly over the next three-five years. The LoRa opportunity pipeline, which includes both opportunities and leads, ended FY 2022 at approximately $950 million. We anticipate that on average, 40%-50% of the opportunities currently in the pipeline will convert to real deployments over a 24-month timeline. Our opportunity pipeline remains well balanced, with use cases primarily in smart utilities, smart logistics and asset tracking, industrial IoT, smart home and smart cities. At the end of FY 2023, we are anticipating our total opportunity pipeline to exceed $1.3 billion. For FY 2023, we are expecting another record year from our LoRa business and anticipate a 40% CAGR for our LoRa-enabled business over the next several years. We also expect our wireless and sensing product group to achieve another revenue record in FY 2023. Now, we discuss our outlook for the first quarter of fiscal year 2023. Following the very strong bookings in Q4 and entering Q1 with record backlog, we are currently estimating Q1 net revenues to be between $195 million and $205 million. To attain the midpoint of our guidance range, or approximately $200 million, we needed zero turns orders at the beginning of Q1. We expect our Q1 non-GAAP earnings to be between 0.72 and 0.80 per diluted share. I will now hand the call back to the operator, and Emeka and I will be happy to answer any questions. Operator? Thank you. At this time, we will be conducting a question and answer session. If you'd like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Our first question comes from the line of Tore Svanberg with Stifel. Please proceed with your question. Yes, thank you, Mohan and Emeka, and congratulations on all the record metrics, quite a few of them. First question, you're expecting gross margin to expand 100-200 basis points this year, and you attributed that primarily to mix. Should we infer by that that the signal integrity group will show the strongest growth this year? Sorry, can you repeat the last section of your question? Yeah. I didn't quite- Given your comment about mix and gross margin expanding this year, should we infer by that the signal integrity group will show the strongest growth this year? Will show the strongest growth? I think we do expect- Among the three groups, right. I think we do expect all of the groups to grow very nicely. The LoRa enabled is still going to probably you know lead the way in terms of absolute dollar growth. Signal integrity with our Tri-Edge platform and our 10G platform should grow very nicely for us. I don't know that it's going to be signal integrity, but I think both LoRa, the Tri-Edge, the 10G PON, they are probably going to lead the way in terms of our year-over-year growth. The ITA business in protection, Tore. As we get more broad-based protection business, that certainly also drives higher gross margins. Very good. Mohan, you know, this time around, you gave us a quarterly revenue for LoRa, and you also gave us a number for the growth in picocell deployments. I mean, I'm assuming that that's sort of an indication that the technology is now really moving into more sort of the consumer world. Yeah, I was just hoping you could elaborate on, you know, why you decided to give us those two metrics, this call. Well, the picocell gateways, you know, I've been giving metrics out on gateway deployments, but I felt now it's gotten to such a large number that we'll start to break out a little bit the picocells and the macro. The macro does tend to be more industrial, you know, smart utilities and smart cities and smart buildings. It's not to say the picocell doesn't go into those type of segments, but a large part of the volume is driven by smart home and smart campus. So I wanted to provide that color because we do get that question a lot. Then I think in terms of the quarterly number, we won't give out the quarterly number. We'll continue to talk about 40% CAGR, but, you know, obviously we'll try to give an indication of how we're doing against that. Of course, you know, for the annual number, you know, we said that we were going to grow at least 40%. We grew 53% and so, you know, we wanted to share that information with you. Thank you. Our next question comes from the line of Tristan Gerra with Baird. Please proceed with your question. Hi, good afternoon. In terms of the revenue pipeline, I think the numbers you provided, you know, show a over 30% increase year-over-year. Is that how we should be looking at lower revenue for this year as well? Also if you could remind us the exposure that you have in China for your LoRa business, which I know has been tracking in kind of a 55% range of revenue in prior quarter last year. Yeah, let me start with that, you know, Tristan. The 50%, China is about 50% of the revenue, but from, in terms of opportunity pipeline, it's about 30%. It's much more balanced, as we've been saying. The pipeline now in North America is also in that range. From a revenue standpoint, still 50% is China. Then in terms of the opportunity funnel and revenue and gateway deployments, you really can't correlate these because their timing is different. You know, when we ship products, we ship into distributors. When we have distributors ship into module providers, module guys sometimes ship into the OEMs, and then the OEMs, you know, build hardware and then deploy deployments of networks. Part of the reason why, you know, we give out these metrics is that the timing of these deployments and when we see the actual revenues versus when the deployments actually occur, you know, it's different. It's difficult for us to exactly, you know, determine the exact timing. We give an indication that each of the areas are growing nicely, which I think is what's important. Okay, great. For my follow-up, I wanted to talk a little bit about, you know, what you're seeing in China, given that about half of your consumer business is smartphone, and most of that, I believe, is China. Now you've said that you expect the consumer to rebound. What are you seeing in terms of inventories in your China smartphone business, and what is the risk that, you know, this inventory correction continues to happen over the next couple of quarters? Is that also something that could potentially impact your LoRa business? I understand LoRa has come down in China as a percentage of the mix, but it's still 50%. Is that kind of a near-term headwind that you can think of for the next few quarters? China demand is obviously very important to us still, for all areas of the business, all product groups. As we monitor it today, demand is still strong, consumption is strong. You know, there's nothing to indicate any weakness in our particular segments, I think. With the consumer demand, I mentioned Q4 typically is down. The second half of FY 2022 was not strong for consumer. Bookings have increased, have improved, so we are expecting a little bit of a rebound in the first half. I think the second half is the big question, I think, not only for China, but really for the rest of the world in terms of, you know, demand and, the all the macro events. Certainly for the first half, we are not anticipating any issues. Thank you. Our next question comes from the line of Craig Ellis with B. Riley. Please proceed with your question. Yeah, thanks for taking the questions. I wanted to come back and follow up on LoRa and do it this way, Mohan. If we were to rewind the clock about a year and think about the momentum that LoRa's gained over the last four quarters, it really did seem to build each quarter, and then you had the very, very strong fiscal fourth quarter. My question is this: I know the company has had for some time and retains the 40% growth target, but given the level we're exiting fiscal fourth quarter 2022, you know, why wouldn't we be seeing the potential for potentially materially above 40% year-on-year growth in fiscal 2023, perhaps to the same degree that we did last year? No reason, Craig, other than, you know, it's difficult to time exactly, you know, obviously the revenues. As I mentioned, the momentum sometimes in terms of network deployments and use cases being deployed gets ahead of when end nodes are being deployed and things like that. You know, we had anticipated 40% growth this last fiscal year, FY 2022. Obviously we did 53%, so we did significantly higher. There's nothing to suggest that, you know, we won't have another similar year. You know, I think in terms of the outlook for the next three to five years, 40% is a very good number that we feel good about given the different types of metrics and how, you know, the opportunity funnel is playing out. Remember, our opportunities funnel we look at is real design opportunities, and we're looking for the conversion of those opportunities into, you know, real deployments, and that's really what drives our revenue model. Got it. Very helpful. I don't know if it's you or Emeka that I should congratulate for having a quarter's revenue guidance require zero turns, but nice to see that kind of backlog coverage, guys. Emeka, I wanted to flip it to you and actually talk about another line item. Very helpful to get the or excuse me, the fiscal 2023 gross margin color that Tore asked about, but my question is this: If we look at the last four or five quarters, we've had very material sequential gross margin improvement and the color for fiscal 2023 would imply I think just 20- 30 basis points from here through the year. What's happening within mix that caused gross margins to expand so materially over the trailing four or five quarters? Why would it not stay on that pace and instead moderate to something that's more implied in the guidance? Thank you. Craig, I think, you know, we've been saying this for a while, that a lot of our investments have been going into markets that we expect to grow very fast and that we also expect to have very high gross margins. It is very pleasing to actually see that beginning to play out, the LoRa-enabled 10G PON, the protection, IoT, industrial businesses. That is really very pleasing to see. You know, as we go forward in FY 2022, we saw about 180 basis points of gross margin expansion year-over-year. There is nothing that says that we cannot duplicate that again in FY 2023, and that's why the guidance for 100- 200 basis points. But we'll have to see. The expectation is that we will continue to see gross margin expansion, but we just have to see how things play out, especially there are still things out there, you know. I mean, with the war in Ukraine, we don't know what the impact is going to be on the supply chain that is already feeling a lot of heat and things like that. We'll see. We're very hopeful, and we're very excited with our gross margin story. Thank you. Our next question comes from the line of Quinn Bolton with Needham & Company. Please proceed with your question. Hey, guys. I'll offer my congratulations as well, and I guess really sort of a follow-up to Craig's question on LoRa. If I just do the math, you gave us the full year, you gave us the fourth quarter. It looks like LoRa in the fourth quarter, you know, was 41.7, and for the average of the first three quarters of the year, it was closer to 31. It looks like there was a pretty dramatic acceleration in the LoRa business in the fourth quarter. I'm just wondering, Mohan, if you can give us some sense, is that driven by just continued gateway deployments? Are you seeing a particular use case? Is it end nodes? You know, what really drove that acceleration in the fourth quarter? Yeah, I would say at this moment, Quinn, it's more the infrastructure. More gateways at the moment driving it, but I think that's the good news, which is for us that infrastructure is being deployed, and then, you know, we'd expect end nodes to follow, the timing of which is tough to call. But yeah, you know, this is not unexpected. I mean, if you go back a couple of years ago, we were running at, you know, $10 million a quarter, and now we're running, you know, closer to $40 million a quarter. And so, you know, it's been trending upwards. And it's been trending upwards not by a mistake. I mean, it's, you know, infrastructure going in, gateways, macro gateways, deployments, real IoT use cases. We're seeing a LoRa ecosystem really expand. We're seeing LoRa Alliance has increased the number of companies in the alliance, but also the types of companies. We now have, you know, Microsoft Azure, Amazon, you know, really big players in the ecosystem that are now starting to drive use cases as well for us. The whole machine is moving in the right direction. We said it was going to happen. It's just a question of time. Now as we're starting to see it's just really translating into deployments. Remember for us, when we generate revenue when we ship product into our customers, right? The deployments take a little bit longer, and we're monitoring that, and then the use cases get deployed. The good thing is that really, if you look across the globe now, LoRa is very well, you know. I mentioned the ITU, you know, LoRaWAN being standard now in the ITU, recognized by the ITU. That's really significant because now the whole globe can use LoRaWAN and knowing that there's interoperability there. We're starting to see roaming agreements across these networks. You know, the picocell, I pointed that out because it drives different types of use cases, some of which we've been talking about for a while, like tags and things like that, but there hasn't been the infrastructure in place, and I think that's starting to change now. Very exciting to see that. Yeah. I guess the follow-up to that was, I believe you had mentioned two applications, Sidewalk and Helium Network, driving some of those gateway deployments in fiscal 2022. Do you have line of sight into sort of the end nodes? Maybe not the exact timing of the ramp, but do you feel confident that those end nodes are being designed and it's sort of just a matter of time before we start to see, you know, a pretty meaningful pickup in the end nodes on those particular networks? Well, what I know, Quinn, is that there would be no end nodes if we don't have infrastructure in place. So now the infrastructure is going in and the gateways are going in and starting to get deployed and, you know, sensors are being developed for these networks, I feel pretty confident about it. But, you know, I think it's going to take a few years. I don't think it's something that's going to happen overnight. And this is the type of, you know, these are type of use cases that can drive very, very high volumes very quickly. In other cases, it might take some time. So as I mentioned, you know, a lot of use cases need density of network. By having these type of networks, and as no roaming agreements come into place, it does drive different use cases. That's the exciting factor that I think we're yet to see, which I think we will see over the next couple of years here. Thank you. Our next question comes from the line of Rick Schafer with Oppenheimer. Please proceed with your question. Yes, thanks. Excuse me, I'll add my congratulations, guys. Just maybe a rather follow-up on LoRa. Mohan, I think you've spoken in the past about your long-term plans for that business, and I think you talked about moving to more of a licensing and royalty type model. I was just curious if there were, you know, sort of what metrics, you know, you need to see to consider opening LoRa up, you know, as a standard and sort of making that shift away from, you know, silicon as your primary source of revenue for LoRa. I think it's, and correct me if I'm wrong, I think still over 90% or so of revenue still coming from the on the chip side. Is that sort of when we get to your $500 million kinda target in the next sorta 3 or 4 years? Or just curious kind of how you're thinking about that business. Yeah, Rick, that's a good question. First of all, most of the revenue is today just chip sales. We are starting to see IP royalties come in a little bit. The key driver is the cloud services revenues, which we just started. It's just early days, but we you know, I mentioned in my prepared remarks that you know, we have signed a relationship with Tencent in China. We're starting to look at more relationships to see if we can get our cloud services revenues based on our LoRa Edge chip platform starting to really grow. The goal is to get that to $100 million of recurring revenues. That's what I've said will then trigger a discussion about, you know, is that PA business that, you know, we can start to look at the chip business and the cloud business, separately. I think we're a ways off that yet, at least three years, but probably more like five years. Oh, thanks for that. Then on Tri-Edge, I mean, thanks a lot for the color on that business. I mean, 45 million this year, I think you said expected. I mean, that business seems to really be sort of taken off. I know we've talked about it the last couple of years. I mean, were there any, like, obvious hurdles that just needed to be overcome? I mean, are we sort of at that tipping point now for that business? How do you look at it in terms of like how do you size the market opportunity there, I guess, for analog PAM4? Thanks. Yeah. Well, the good news here is that, you know, we were, we didn't really have any PON4 products until Tri-Edge. You know, we were a little bit behind the DSP solutions out there. It's all share gains for us in this space, I think, the way I look at it. With our first 50G PON4 short reach products, we knew we had limitations on reach, but we knew that also the power consumption is going to be extremely beneficial to data center customers that cared about power and care about cost. We're starting to see that momentum now in the short reach side. As I mentioned, we're just sampling now the longer reach products for 200 gig FR4 modules, which is, you know, two-kilometer kind of range, which really opens up the whole data center space for us. We're excited by that. You know, obviously we have quite a few developments in this area as well. More to come. Yeah, very exciting, and we expect data center to be quite strong for us over the next few years. Thank you. Our next question comes from the line of Gary Mobley with Wells Fargo. Please proceed with your question. Hey, guys. Thanks for taking my question. If I look at the midpoint of your Q1 revenue guide, it's about 4.9% sequential growth. I'm curious to know if that's benefiting at all from, you know, point of purchase increase, or would you expect a commensurate increase in your point of sale as well? Point of sale is also at record for us at the moment, and we're expecting another record in Q1. I think your question, Gary, was tied to ASP increases. You know, at the moment the way we're thinking about it was that any type of cost increases we get, we'll pass on to our customers. But yes, we do expect POS to increase in correlation with that. Yeah. I mean, I guess it would encapsulate some price increases. But I was really more so asking if it was a function of distributor inventory increasing. Oh, no. I think, you know, our POS is very strong. As, like, we mentioned on the call, it's a record. You know, cycle times, supply chain cycle times have not changed. They are very extended at the moment. You know, you'll see our internal inventory has increased. I expect our channel inventory to increase a little bit. At the end of the day, as long as POS is also increasing, in other words, the consumption is increasing, then I think we're in good shape. Okay. Emeka, just to clarify, did you say bookings were up 35% quarter-over-quarter? Related to, you know, supply, I presume with the 13-day increase quarter-over-quarter in your DOI, and with it running above, you know, historical levels, that you're really not dealing with any supply constraints. If that's the situation, you know, how have you guys been able to escape this while others, everybody else in the industry is dealing with it? If I go back a couple of years here, probably prior to the pandemic, we had actually were anticipating to start seeing the ramp of some of these new product platforms that we're seeing now. We did pay attention to our supply chain, and in some cases, we made sure we had second sources and all that stuff all lined up. We are very fortunate in that way, that when the pandemic hit, we're already in a very good position with regard to the supply chain. You know, we've managed that very well, I think. You know, it doesn't mean that we don't have any supply constraints at all. You know, there are little pockets here and there. On the average, I think we are in a very good position with where our inventory levels are. I'm very pleased to see that we are able to support a lot of the strong demand that we're seeing at this point. Thank you. Our next question is a follow-up from Tore Svanberg with Stifel. Please proceed with your question. Yes, thank you. I just had a follow-up questions on all the products that you introduced at OFC. It was a pretty impressive lineup. And specifically in relation to PON, Mohan. You know, that market has always been a bit volatile, especially because of China. I think this is going to be your second consecutive year with very strong growth. How should we think about that market and your new products for that market as we go into fiscal 2024? Yeah, I would say, Tore, your observation is exactly right. You know, PON has become a totally different space now. It's a totally different market. I think what's really driven that is the pandemic. When we look at the pandemic and what drove more access bandwidth, there were clearly bottlenecks in the access side. PON is a really good way to solve that problem. I think China has demonstrated that and continues to demonstrate that. The rest of the world has also now started to accept that. We're seeing North America, Europe, and India, as I mentioned, and other regions starting to really look at PON as their key access bandwidth. We've seen an acceleration of GPON. We've seen an acceleration of 10G PON. Obviously, that's also helping gross margins, and we are playing obviously in both OLT and ONU side. The other really intriguing thing for us, which is very exciting for us, is the expansion into 25 Gig PON, and 25 Gig PON, the modules, as I mentioned on my prepared remarks, will likely need CDR functionality as well. That opens up more content for us. We're obviously leaders in the PMD side. We're, you know, one of the leaders in CDRs, and so the combination of the two in PON gives us a very, very good position there. And we're even, you know. I mentioned we even have developments at 50 Gig PON. Very exciting generally. I would say good space to be in now, and probably for the next five-10 years, this is a space that is going to get a lot of investment in, I suspect. Very good, Mohan. Congrats again. Thank you. Ladies and gentlemen, we have reached the end of the question and answer session, and I will now turn the call over to Mohan Maheswaran for closing remarks. In closing, we were pleased with our strong Q4 and record FY 2022 results. Despite the challenging pandemic and supply chain environment, we believe our multi-sourcing initiatives and our investments in infrastructure and tools has enabled us to maintain best-in-class business operations. Our key growth engines targeted at broadband infrastructure, creating a smarter planet, and enabling mobility are all doing very well, and we expect FY 2023 to deliver another record year for Semtech. With that, we appreciate your continued support of Semtech and look forward to updating you all next quarter. Thank you. This concludes today's conference, and you may disconnect your lines at this time. Thank you for your participation, and have a wonderful day.