We believe the likelihood of the merger going through remains high, but it is possible that the merger will be delayed or that the U.S. will demand severe enough restrictions that NTT decides to walk away from the merger,
We believe that this is likely to adversely impact sentiment towards semi vendors with exposure to PCs in the absence of what would have been a potentially significant catalyst for PC holiday consumer sales.
Exodus blew away our revenue expectations. We are very pleased with these numbers, and we believe the market will breath a big sigh of relief with rapid 34 percent sequential growth, versus our estimate of 27 percent.
While we look for limited near-term benefit from this announcement, we believe it creates a significant long-term potential upside opportunity for Apple.