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: David Vogt - UBS Investment Bank, Research Division - Analyst
: I have a couple of questions and maybe one for Kenny and a couple for Mike. So Kenny, just on the mobility transaction, I know you're probably
limited in terms of what you can say.
But what gives you confidence -- I'm just trying to think through. Like what gives you confidence if this deal could close, let's say, within 2 quarters?
Because I'm sure you're aware there's other deals that have been pending earlier in the year that are taking upwards of 12 months, if not longer.
So kind of what's going on there? And kind of what are the steps that we should be looking at following sort of the purchase agreement data that
you published last night? And then I'll just hold off and ask Mike my follow-ups, if that's okay.
Question: David Vogt - UBS Investment Bank, Research Division - Analyst
: Great. And then maybe for Mike, I appreciate the color on the margins and the mix shift embedded in sort of the outlook for fiscal '24. But can you
kind of touch on 1Q to start? It looks like at the high end, operating margins are closing in on 6%. And I would imagine that includes mobility for
at least a full quarter to Kenny's point.
And -- but when we look at the full year of '24, I would imagine the base case and the projections are mobility exiting the business by the end of,
let's say, fiscal 2Q, and margins kind of trend lower in, I would imagine 2Q and the back half of the year.
So kind of what's going on in the first quarter? I know mix you mentioned earlier, it's a faster growing business that helped margins in the full year,
but specifically in 1Q, why are margins so strong? And what does that imply for mobility margins?
And then maybe just as a quick follow-up. I'll give it to you both at the same time. I think you made a comment that your fiscal '25 outlook only
contemplates growth of about 3%. I would assume that's based off of a '24 number that is pro forma, excluding mobility. Is that maybe the right
way to think about it? And I'll just stop there.
Question: David Vogt - UBS Investment Bank, Research Division - Analyst
: And Mike, just to clarify, so is the stranded cost and the sort of triggered gain embedded in the core non-GAAP projections? Or is that just strictly
in the GAAP numbers for '24?
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