Astera Labs, Inc. Common Stock (NASDAQ:ALAB) Q1 2024 Earnings Call Transcript

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Jitendra Mohan: Yes. Add to what Sanjay said. I think the good news for us in some ways is that we don’t have to pick, we don’t have to decide which one. We have chips, we have hardware, and we have software. So we have customers that come to us and say, hey, I need this for my new AI platform. Can you help me with that? And then that’s what we’ve been doing.

Suji Desilva : And then a question perhaps for Mike. The initial AEC programs ramping maybe a few customers this year, few customers next year or maybe perhaps all of them this year. But do you perceive that those will be larger lumpier program based ramps, Mike? Or will those be steady kind of build out to the servers grow?

Mike Tate: I think the product ramps will mirror other product ramps well. They’ll gradually build over a few quarters till they hit steady state. And if you layer them on top of each other it just continues to build a nice growing revenue profile. So as you look at Taurus in 2024, we’re shipping 200 gig right now. And then in the back half we start to ship 400 gig. And if you look into 2025, 800 gig which is ultimately the biggest opportunity in a much broader set of customers, will be when the market really becomes very large.

Operator: Your next question will come from the line of Richard Shannon with Craig-Hallum.

Richard Shannon : Hi, guys. Thanks for taking my questions. Well, congratulations on coming public here. I guess I want to follow-up on a couple of topics here that have been hit on, including Suji’s question here about the PCI Express, AEC opportunity. Are these design wins, or are these kind of pre-design win ramps you’re talking about this year? And I guess ultimately my question on this topic here is, is can this opportunity, these PCI Express AECs become as big as your Taurus family in the foreseeable future?

Sanjay Gajendra: Yes. So these are design wins to clarify. We have been shipping this. We announced this. We’ve demonstrated this at, at public forums. So to that standpoint, it’s an opportunity that we’re excited about and like we noted early on. We expect to start contributing revenue for later half of this year.

Richard Shannon : And the second question is on CXL. I think you’ve mentioned a couple of applications here. Maybe if you can kind of express the breadth of interest here across hyperscalers and other customers, for the ones you mentioned? And then also for the, next ones that are a little bit more expansive in nature, how do you see the testing and specking out of those? Are those coming to market at the time you’re hoping for or is there a little bit more development required to get those to market?

Sanjay Gajendra: Yes. There are two questions. Let me take the first one, which is the CXL side. For CXL, there are four main use cases to keep in mind, memory expansion, memory tiering, where you’re trying to go for a TCO type of angle, memory pooling, and what is called as this memory drives that Samsung and others are providing. We believe memory drives are more suitable for the enterprise customers. And whereas the first three are more suitable for cloud scale deployment. And there, again, memory pulling is something that’s further out in time is our belief just because it requires software changes. So the ones that are more sort of short-term, medium-term is memory expansion and memory tiering. And like I noted early on, all the major hyperscalers, at least in the U.S., are all engaged on the CXL technology.

But it is going to be a matter of time with both CPUs being available and dollars being available from a general purpose compute standpoint. Okay. And then in terms of, your second question was, was that more on new products? Was that the context for it?

Richard Shannon : Yes.

Sanjay Gajendra: Yes. So again, we don’t talk about the exact time frame, but you can imagine our last product we announced was a little over a year ago. So our engineers have not been quite, so they’ve been working hard. So to that standpoint, we are working very diligently and hard based upon, lot of interest and engagement from customers that we’ve already been working with.

Operator: There are no further questions at this time. I’ll turn the call back over to Leslie Green for closing remarks.

Leslie Green: Thank you everyone for your participation and questions. We look forward to seeing many of you at various financial conferences this summer and updating you on our progress on our Q2 earnings conference call. Thank you.

Jitendra Mohan: Thank you, guys.

Operator: This concludes today’s conference call. You may now disconnect.

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