Item 7 · Management’s discussion and analysis
Revenue increased 16%, driven by growth in cloud services. We expect capital expenditures to increase materially1 as we expand data center capacity, and we may not realize the expected return on these investments within the anticipated timeframe1.
We believe our existing capacity is sufficient to meet anticipated demand through the next fiscal year.removed2
Operating margin was 44.6%, compared with 42.1% in the prior year, reflecting a favourable mix and continued efficiency in cost of revenue.
Item 1A · Risk factors
Our reliance on a limited number of suppliers for advanced accelerators could constrain our ability to deliver cloud servicesnew3. Any disruption may affect revenue growth and margins.