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Friday, May 03, 2024 8:15:36 AM
Got it. So maybe because of that, how should we think about the volatility of the data center business? Because it grew very strongly for two quarters last year, then it took a breather this last quarter now starting to grow again. So is that sort of the cadence going forward sort of like two quarters of strong growth over one digestion? Any other types of visibility there would be helpful
Steve Daly
Well, I think you hit the nail on the head. It's a very volatile end-market. And we can't control that volatility. So I think investors need to expect continued volatility overtime so long as the trend line is showing that overall the business is growing and becoming more diversified, I think we'll be able to manage that business.
So you're certainly right that, it can turn on and off. You typically see that when the ISPs release large orders into the supply chain, as they're doing a build-out or you see that when they're moving from one data rate to another. Some people are saying that the speed of these transitions is increasing.
And so we're trying to keep up with all of that. But yes, you are exactly right. The data center is certainly a volatile end market. We have a very conservative approach to forecasting and managing the business so that we don't get ahead of ourselves in terms of investor expectations.
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