The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Luke Junk - Robert W. Baird & Co Inc - Analyst
: A couple of next questions for me. Tim, maybe to start with, could you just double click on how we should think about operating leverage in QNX
from here? So growing in the mid-teens year over year this quarter. But OpEx in terms of R&D and sales and marketing still coming down year over
year in aggregate, which gave you really good leverage. I know some of that was the R&D credit.
If we just pull on that string, what does it say about the business from here from a leverage standpoint? And maybe specific to guidance and the
sequential walk, just anything we should be keeping in mind, one-timers or seasonality into the third quarter?
Question: Luke Junk - Robert W. Baird & Co Inc - Analyst
: Got it. And then for my follow-up, John, you mentioned that I think it was a mid-8-figure design win in China with the Tier 1 for ADAS applications.
Just be curious if you could maybe expand on your overall approach to the China market.
Just strategically, certainly, that's a market in automotive that's at the leading edge of software-defined vehicles right now. Just curious how you
lean into that in China specifically and then sort of the offshoot of that would be some benefit, I would anticipate, repatriating that into rest of
world as well. Thanks, John.
Question: Paul Treiber - Rbc Capital Markets - Analyst
: Just also a couple of questions on QNX as well. Just on the outlook for the year, the outlook continues to be back-end loaded for QNX. Can you just
remind us again of what you see as the driver of the pickup in the back half of the year? And does that -- specifically does that reflect either licensed
or professional services which is more onetime in nature? Or is it a ramp in royalties?
Question: Paul Treiber - Rbc Capital Markets - Analyst
: Big picture on QNX in the auto market. You mentioned a lot of uncertainty at the beginning of the year. The feedback that you're getting from auto
OEMs in terms of the prioritization of new platform development, like -- and you mentioned the potential for seeing the move of big programs
into production. Like, are you hearing that these big programs are back on track and the plans have moved maybe back to where they were
previously, whereas there's a concern that they might have been pushed out?
Question: Todd Coupland - CIBC World Markets Corp - Analyst
: I had a question on QNX. I was wondering if you could update us on the backlog and the backlog growth in the quarter. And as a follow-up, with
15% growth in QNX in Q2 and double-digit implied in the second half of the year, are you comfortably in double-digit growth range for QNX now?
Just talk about the sustainability of that. Thanks a lot.
| 
