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CNBC Exclusive: CNBC Transcript: Intel CEO Brian Krzanich Speaks with CNBC’s “Squawk on the Street” Today

WHEN: Today, Wednesday, April 20th

WHERE: CNBC's "Squawk on the Street"

Following is the unofficial transcript of a CNBC EXCLUSIVE interview with Intel CEO Brian Krzanich on CNBC's "Squawk on the Street" (M-F, 9AM-11AM ET) today, Wednesday, April 20th. Following is a link to the video on CNBC.com:http://video.cnbc.com/gallery/?video=3000511142.

All references must be sourced to CNBC.

JON FORTT: INTEL CEO BRIAN KRZANICH JOINS US NOW FROM INTEL HEADQUARTERS IN SANTA CLARA. BRIAN, ALWAYS GREAT TO HAVE YOU. THANKS FOR JOINING US.

BRIAN KRZANICH: THANK YOU VERY MUCH, JON. GOOD TO SEE YOU GUYS.

FORTT: LET ME START OFF WITH A QUESTION ABOUT THE MOVE WITH STACY SMITH WHO WALL STREET KNOWS VERY WELL AS CFO FOR A LONG TIME. THIS LOOKS LIKE THE SORT OF MOVE THAT'S GROOMING SOMEBODY FOR A MOVE HIGHER, BUT THERE'S NOT MUCH HIGHER ONE CAN GO, ESPECIALLY AFTER WHAT WE SAW AT DISNEY JUST A COUPLE WEEKS AGO. I THINK THIS IS AN IMPORTANT POINT TO HIT, YOU CAME INTO THE CEO ROLE WITH A NUMBER TWO, RENEE JAMES, SHE'S NOW LEFT THE COMPANY, IS STACY SMITH NOW THE NUMBER TWO? I KNOW YOU'RE NOT GOING ANYWHERE BUT FROM A BOARD PERSPECTIVE, BUT IS THIS SORT OF LINING HIM UP TO BE NEXT IN LINE?

KRZANICH: THIS WASN'T SO MUCH ABOUT SUCCESSION PLANNING AS IN WHO'S NUMBER TWO AND NUMBER THREE, ANYTHING LIKE THAT. THIS IS -- YOU KNOW, AT INTEL LOOK AT MY OWN CAREER. WE REALLY PRIDE OURSELVES OF REALLY DEVELOPING LEADERS AND GIVING THEM REALLY WIDE EXPOSURE. STACY HAD BEEN CFO FOR NINE YEARSAND HE AND I HAVE BEEN WORKING FOR SEVERAL QUARTERS ON WHAT DOES HE DO NEXT. AND THE NEXT NATURAL ROLE WAS SOMETHING LIKE THIS. HE'D WORKED IN SALES EARLIER IN HIS CAREER. HE HAD BEEN IN THE FINANCE SIDE OF MANUFACTURING EARLIER IN HIS CAREER. AND SO ACTUALLY GOING IN AND RUNNING THOSE OPERATIONS MADE A LOT OF SENSE JUST IN HIS CAREER DEVELOPMENT. AND ALSO GIVES THOSE SEGMENTS OF THE BUSINESS EXPOSURE TO HIS LEADERSHIP STYLE. SO THIS IS JUST PART OF THE NATURAL HOW DO WE DEVELOP BETTER LEADERS, LEADERS WITH MORE SCOPE AND MORE CAPABILITY.

FORTT: ALL RIGHT. BRIAN, YOU'RE A PLAIN SPOKEN GUY, SO MAYBE YOU CAN MAKE THIS CLEAR FOR ME WHAT EXACTLY THIS RESTRUCTURING SIGNALS ABOUT THE PC MARKET. IT SOUNDS LIKE WITH THE EXTENT OF THIS CUT TALKING 12,000 PEOPLE RELATIVELY QUICKLY, YOU'RE LOOKING FOR AN ANNUALIZED REVENUE RUN RATE TO COME DOWN 1.4 BILLION, I BELIEVE, BY NEXT YEAR. ARE YOU NOW IN EFFECT SAYING YOU'RE NOT EXPECTING GROWTH TO COME BACK TO THE PC MARKET AT ALL? NOT EXPECTING IT TO TANK. IT'S GOING TO CONTINUE TO HELP FUEL AREAS THAT YOU DO EXPECT TO GROW. BUT INTEL IS SHIFTING EVEN MORE THAN YOU'D SAID BEFORE AWAY FROM BEING A PC COMPANY?

KRZANICH: YOU KNOW, YOU ACTUALLY CAPTURED THE MAIN POINT OF THIS, JON. THIS IS ABOUT ACCELERATING THAT CHANGE. AND ACTUALLY TAKING THE PC AND BEING REALISTIC ABOUT, HEY, IT'S, YOU KNOW, GOING TO BE DOWN IN THAT MID TO HIGH SINGLE DIGITS YEAR-TO-YEAR. IT WILL BOTTOM OUT AT SOME POINT, BUT WHAT WE REALLY NEED TO DO IS OPERATE EFFICIENTLY AND MAXIMIZE THE PROFITABILITY IN THAT TIME. AND SO THIS IS ABOUT DOING THAT WHILE SHIFTING AND ACCELERATING FASTER INTO THOSE GROWTH AREAS. NOW, WE'VE TALKED ABOUT THE DATA CENTER, THE INTERNET OF THINGS, MEMORY AND FPGAs. THOSE WERE ALL GREAT QUARTERS. THOSE WERE ALL QUARTERS WHERE THEY ALL GREW THIS QUARTER, QUITE NICELY. IOT UP 22% YEAR OVER YEAR, DATA CENTER UP ALMOST 10% YEAR OVER YEAR, THAT'S A GREAT RESULT. AND THAT'S A GROWTH COMPANY. SO WE'RE GOING TO ACCELERATE IN THOSE AREAS. ACTUALLY INVEST MORE AS A PART OF THIS.

JIM CRAMER: BRIAN, JIM CRAMER, I ABSOLUTEY HEAR YOU ON THE IOT, 22% GROWTH, THAT'S GREAT. BUT IT'S ONLY 651 MILLION REVENUES. I UNDERSTAND COMPLETELY THE ALTERA ACQUISITION BUT IT'S ONLY $359 MILLION IN REVENUES FOR THIS QUARTER. I LOOK AT WHAT NXPI DID, I LOOK AT WHAT AVAGO DID AND NOW BROADCOM. I KNOW YOU LIKE THE CONNECTED CORE, I KNOW YOU LIKE INTERNET OF THINGS, IS IT NOT TIME TO DO ONE MORE ACQUISITION? ALTERA YOU DID THAT STOCK YOU DID THAT DEAL WHEN YOUR STOCK WAS AT 34, YOUR STOCK IS NOW AT 31. WHEN YOU LOOK AT WHAT AVAGO DID THEIR STOCK IS NOW UP 30 POINTS FROM WHEN THEY BOUGHT BROADCOMM. A LOT OF PEOPLE THOUGHT THEY PAID TOO MUCH FOR BROADCOMM, MUST YOU MAKE WITH ADDITIONAL MONEY ANOTHER ACQUISITION TO BUILD UP INTERNET OF THINGS AND BUILD UP PROGRAMMABLE?

KRZANICH: WELL, I THINK ON PROGRAMMABLE AND FPGA WE BOUGHT THE BEST ASSET IN THE INDUSTRY. AND I THINK WE'VE DONE A GREAT JOB OF INTEGRATING THAT IN. JIM, I WANT TO MAKE A VERY CLEAR POINT, NOT ONLY DID THEY BEAT THEIR QUARTER, BUT WE'VE REALLY STARTED TO ACCELERATE THEIR PRODUCTS FOR THIS YEAR. AND WE ACTUALLY ARE SHIPPING NOW THE FIRST ZION AND FPGA CO-PACKAGED PART INTO CUSTOMER AND SAMPLING CUSTOMERS NOW. WE DO NEED TO CONTINUE TO GROW. DATA CENTER'S ABOUT A 2.5 TO 3 BILLION A YEAR BUSINESS. GROWING AT DOUBLE DIGITS. WE WILL PROBABLY GO IN AND MAKE MORE ACQUISITIONS. WHAT THOSE WILL BE WE'RE STILL TRYING TO FIGURE OUT EXACTLY WHAT THEY ARE. BUT REMEMBER THE DATA CENTER IS A $16 BILLION BUSINESS. AND THAT'S GROWING DOUBLE DIGITS AS WELL. SO I BELIEVE THE GROWTH ENGINES ARE THERE. WE HAVE THE RIGHT STRUCTURE. WE'LL GROW BOTH ORGANICALLY AND, YES, THERE WILL BE SOME INORGANIC.

CRAMER: ALRIGHT BUT BRIAN IS THIS KIND OF A MOMENT LIKE WHAT ANDY GROVE HAD TO DO IN THE '80s AND SAID WE NEED TO BE NUMBER ONE, WE'RE NOT GOING TO BE NUMBER ONE IN D RAMS, WE'RE GOING TO SHUTTER GET RID OF D RAMS, AND WE'RE GOING TO MOVE ALL THE WAY INTO THE 286, EVERYONE LAUGHED AND TURNED OUT TO BE A BRILLIANT MOVE. LET ME JUST GIVE YOU A CONSPIRACY THEORY VIEW SO YOU HAVE STACY SMITH, MAYBE HE RUNS OLD INTEL, NEW INTEL, INTERNET OF THINGS, NEW INTEL AUTO, NEW INTEL THE SUPER COMPUTER OF CARS. NEW INTEL WE GET THIS PROGRAMMABLE LOGIC, TWO INTELS ONE GROWS SLOW BUT HAS A LOT OF CASH, ANOTHER GROWS REALLY FAST AND IT IS WHERE YOU PUT THE ASSETS.

KRZANICH: WELL, I DON'T KNOW IF STACY SMITH AND RUNNING MANUFACTURING IS OLD INTEL. IT IS STILL THE CORE OF THE BUSINESS BUT YOU ARE RIGHT IN THERE'S BECOMING TWO SEGMENTS OF INTEL. THERE IS THE SEGMENT AROUND THE CLIENT THAT IS TENDING TO BE A BIT MORE STABLE BUT HAS A LOT OF PROFITABILITY AND A LOT OF ABILITY TO FUEL GROWTH FOR THE OTHER SEGMENTS. AND THERE'S THE NEW SEGMENTS THAT WE'RE GOING TO MOVE INTO AND ACCELERATE AT A FASTER RATE. AND THOSE ARE THE DATA CENTER, MEMORY, IOT, FPGAs, I BELIEVE THOSE CAN BECOME AS BIG OR BIGGER THAN THE PC OVER THE NEXT FEW YEARS. IN THE SIZE OF THEIR BUSINESSES AND EQUALLY AS PROFITABLE.

CARL QUINTANILLA: BRIAN, YOU TALK ABOUT PCs EVENTUALLY BOTTOMING OUT, BUT HOW MUCH PAIN IS BETWEEN THERE AND HERE? AND IS THERE ANY ARGUMENT THAT HOLDS WATER THAT PCs FACE SOME KIND OF EXISTENTIAL THREAT WHERE THEY ARE TRULY GOING AWAY SO TO SPEAK?

KRZANICH: YOU KNOW, WHERE THEY'LL BOTTOM OUT I'M NOT EXACTLY SURE. THAT WOULD BE A GREAT ABILITY TO PREDICT THAT. I DON'T THINK THEY'RE GOING TO GO AWAY. I MEAN, ALL OF US INCLUDING ALL OF YOU GUYS RIGHT THERE ON SET ARE USING PCs AND I THINK WILL CONTINUE TO USE PCs. PCs WILL CONTINUE TO TRANSFORM. WE HAVE A LOT OF GREAT INNOVATION STILL YET TO COME ON THE PC. BUT I DO THINK THAT WHAT YOU'RE GOING TO SEE IS, YOU KNOW, KIND OF A TRANSFORMATION OF INTEL AS A BUSINESS IN THAT THERE'S A LOT OF PROFITABILITY. YOU KNOW, EVEN IN A DECLINING PC MARKET WE GREW PROFITABILITY OVER THE LAST COUPLE OF YEARS IN THE PC SEGMENT. SO THIS EFFORT IS REALLY MEANT TO CONTINUE THAT GROWTH AND PROFITABILITY WHILE BRINGING THE RIGHT INNOVATIONS, NOT SPENDING MONEY EVERYWHERE ON THE PC. WHILE WE SHIFT THAT SPENDING OVER INTO THESE GROWTH AREAS, DATA CENTER, IOT, MEMORY, THE OTHER AREAS.

FABER: MR. KRZANICH, YOU'RE GOING TO BE ELIMINATING ROUGHLY 11% OF YOUR WORKFORCE OVER, LET'S CALL IT THE NEXT YEAR, SOME 12,000 JOBS. CAN YOU GIVE US A SENSE AS TO WHY YOU FELT THAT WAS THE RIGHT NUMBER?

KRZANICH: SURE. FIRST LET ME BE TRANSPARENT AND SAY THOSE ARE DIFFICULT DECISIONS. THOSE ARE FRIENDS. THOSE ARE PEOPLE WHO I'VE WORKED WITH FOR MANY, MANY YEARS AND SO IT'S A DIFFICULT DECISION TO MAKE. WHAT WE DID WAS WE TOOK A LOOK REALLY AT THE PROGRAMS WE WANTED TO IMPLEMENT, AND THEY'RE REALLY BROKEN INTO A FEW SEGMENTS. THERE'S PERFORMANCE RELATED AND CHOICE RELATED VOLUNTARY SEPARATIONS AND INVOLUNTARY SEPARATIONS, THERE'S SOME SITE CLOSURES, WE HAVE ACQUIRED A LOT OF BUILDINGS AND A LOT OF LOCATIONS ALL OVER THE WORLD, A LOT OF THEM THROUGH ACQUISITIONS THAT HAVE NOW BECOME ISOLATED AND WE'RE GOING TO TRY – TEAMS THAT ARE CO-LOCATED WORK MUCH MORE EFFICIENTLY. AND THEN THERE'S PROJECTS THAT WE'RE GOING TO BECOME MORE EFFICIENT ON AND/OR THEY HAVE NOT HAD A RETURN OR SHOW A RETURN IN THE FUTURE AND SO WE'RE GOING TO CLOSE THOSE DOWN. WHEN WE ADDED ALL THOSE UP, WHEN WE LOOKED AT IT AND THEN WE SUBTRACTED THE INVESTMENTS WE WANTED TO MAKE IN THOSE GROWTH AREAS, THE NUMBER CAME OUT AROUND THAT 12,000 NUMBER. SO IT WAS REALLY A MIXTURE OF WHAT ACTIONS DO WE WANT TO DO TO DRIVE THE COMPANY TO BE MORE EFFICIENT BALANCED AGAINST WHERE DO WE WANT TO SPEND MONEY AND HOW DO WE WANT TO GO ACCELERATE THE CHANGE AND THE GROWTH AREAS. AND WHEN WE DID THAT IT CAME OUT TO THAT 12,000ISH NUMBER.

FABER: YOU KNOW, THERE ARE ANY NUMBER OF COMPANIES IN THE PAST IN YOUR MARKET THAT DO A SERIES OF LAYOFFS THAT IDENTIFY A NUMBER AS YOU HAVE BUT THEN COME BACK TO IT A YEAR AND A HALF LATER AND SAY, YOU KNOW, WE'VE GOT TO DO MORE. DO YOU EXPECT THIS IS GOING TO BE IT IN TERMS OF THE LAYOFFS THAT TAKE PLACE AT INTEL?

KRZANICH: YOU KNOW, THAT'S CERTAINLY THE PLAN. YOU KNOW, IF WE TAKE A LOOK AT THIS AT THE END OF THIS EFFORT, INTEL WILL HAVE, IF YOU MEASURE BY SAY REVENUE PER EMPLOYEE, THE MOST EFFICIENT OR THE HIGHEST REVENUE PER EMPLOYEE IN THE HISTORY OF THE COMPANY. AND SO WE'VE REALLY TRIED TO LOOK AT THIS AS HOW DO WE BECOME THE MOST EFFICIENT WE ARE, HOW DO WE BE REALISTIC AS WE SAID ABOUT WHERE THE PC IS GOING, STILL KEEP INVESTMENTS IN THE PC AND THE RIGHT LOCATIONS, PLACES LIKE TWO IN ONE, THE THIN AND LIGHT DEVICES, THEY'RE CONTINUING TO GROW AND THEY'RE GROWING AT A GOOD RATE, GAMING PCs ARE GROWING AT A FANTASTIC RATE. WE ARE CONTINUING TO GAIN SHARE IN THE SET TOP BOX MARKET AND THOSE ARE MORE AND MORE SAME TECHNOLOGY AS A PC. WE'RE GOING TO INVEST IN THOSE AREAS. BUT WE ARE GOING TO MANAGE THE INVESTMENTS IN THE OTHER SEGMENTS THAT MAYBE AREN'T GROWING OR ACTUALLY SHRINKING. WE'VE TRIED TO SCALE THIS SUCH THAT THIS IS THE ONE TIME THAT WE NEED TO DO TO REALLY PUSH THIS ACCELERATION OVER. YOU KNOW, YOU MENTIONED IS THIS LIKE THE GROVE EFFORT WHEN WE REALLY WENT FROM MEMORY TO THE CPU? IT IS IN THAT WE ARE MAKING THE SHIFT. WE ARE GOING TO GO PUSH OVER THE EDGE. WHAT'S DIFFERENT AND ACTUALLY BETTER HERE IS WE'RE NOT HAVING TO EXIT. WE STILL HAVE A VERY PROFITABLE ENGINE IN THE PC AND WE'RE GOING TO ACTUALLY MAKE IT MORE PROFITABLE WHILE WE FUEL THE GROWTH IN THOSE OTHER AREAS.

FORTT: BRIAN, IT SOUNDS LIKE YOU'RE SAYING ON PCs YOU MENTIONED TWO IN ONES, THIN AND LIGHT GAMING PCs, THOSE ARE THE HIGHER END MODELS. THAT REALLY IT'S THE LOWER END AND MAYBE EVEN THE BOTTOM OF THE MID-RANGE THAT'S NOT PERFORMING, THAT'S SHRINKING. AMD USED TO REALLY OPERATE IN THAT AREA. YOU GUYS HAVE LARGELY DOMINATED THEM IN THAT CATEGORY AS WELL. WHAT'S GOING TO HAPPEN TO THE LOW END PC IF YOU GUYS AREN'T GOING TO INVEST THERE? AND DOES THIS ALSO MEAN THAT THE MARKETING DOLLARS THAT YOU GUYS HAD BEEN CONTRIBUTING TO OEMs IN THAT AREA THAT THOSE ARE GOING TO EITHER GO AWAY OR BE DRAMATICALLY DEPLETED?

KRZANICH: SO A BIT OF YOUR COMMENT IS SPOT-ON. THE GROWTH AREAS INTERESTINGLY ENOUGH ARE TENDING TO BE THOSE HIGHER END PCs, THE GAMING PCs, THE HIGH END ENTERPRISE AND CONSUMER PCs ARE DOING QUITE WELL. THE THIN AND LIGHT DEVICES THAT PEOPLE WANT TO USE ON THE GO. YOU'RE RIGHT IN THAT THE AREAS THAT ARE FLAT TO DOWN ARE TENDING TO BE THOSE MID TO LOWER LEVEL SYSTEMS, BOTH LAPTOPS AND DESKTOPS. THAT DOESN'T MEAN THAT WE'RE NOT GOING TO CONTINUE TO SUPPORT THEM OR BRING IN NEW INNOVATIONS. IT'S THAT WE'RE GOING TO SCALE THAT INNOVATION RELATIVE TO THE GROWTH. SO WE'LL SLOW IT DOWN. WE'LL – AS FAR AS THE AMOUNT OF INNOVATION GOING INTO THOSE SEGMENTS, BUT WE'RE STILL GOING TO SUPPORT THEM ABSOLUTELY. AND JUST BE REALISTIC ABOUT WHERE THOSE ARE HEADED.

FORTT: TELL ME AGAIN ABOUT DATA CENTER. WE HADN'T TALKED THAT MUCH ABOUT THAT. IT SEEMED LIKE YOU WERE SAYING THAT THE STRENGTH IN DATA CENTER WAS MORE ON THE CLOUD END – YOUR AMAZONS, YOUR FACEBOOKS, YOUR MICROSOFTS, BIG BUYERS THAT HAVE COME TO DEFINE THIS ERA IN DATA CENTER. ENTERPRISE WAS ACTUALLY WEAKER. IS THIS SOMETHING THAT'S JUST A BLIP? OR IS IT INDICATIVE OF THIS LARGER TREND OF ENTERPRISES NOT BUYING THEIR OWN HARDWARE AND SHIFTING THEIR FOCUS TO THE CLOUD?

KRZANICH: SO, JON, I THINK IT'S A BIT OF BOTH. THERE'S DEFINITELY A CORRELATION BETWEEN THE ENTERPRISE AND GDP AND, YOU KNOW, OVERALL MACROECONOMICS. SO WE SEE WHEN GDP IS SLOWED, WE SEE THE ENTERPRISE SEGMENT OF ALL OF THE DATA CENTER BE THE ONE MOST EFFECTED. SO THERE'S A CERTAIN AMOUNT OF IT THAT'S TIED TO MACROECONOMICS AND GDP. BUT YOU'RE RIGHT IN THAT THERE'S ABSOLUTELY ALSO A MOVE TO THE CLOUD AND THE PUBLIC CLOUD THAT'S GOING ON. AND SO YOU ARE SEEING THAT ALTHOUGH THE ENTERPRISE IS STILL THE LARGEST SEGMENT OF THE DATA CENTER BUSINESS FOR US, ITS GROWTH HAS SLOWED DOWN QUITE A BIT. IT'S STILL GROWING THOUGH, SO I ALWAYS WANT TO BE CAREFUL. IT'S NOT THAT THIS IS NOT A GROWTH BUSINESS, IT'S JUST SLOWED DOWN. THE DATA CENTER HAS GROWN AT GREATER THAN 20 – OR THE CLOUD PORTION OF THE DATA CENTER IS GROWING AT MORE THAN 20% THOUGH. AND IT IS ONE OF THE GROWTH AREAS. BUT I WANT TO REMIND PEOPLE THERE ARE OTHER AREAS, THERE ARE OTHER PARTS OF THE FOOTPRINT OF THE DATA CENTER. THERE'S NETWORKING, THERE'S STORAGE. NETWORKING IS NOW THE FASTEST GROWING SEGMENT AS A PERCENTAGE OF OUR DATA CENTER BUSINESS. AND WE'RE STILL A RELATIVELY SMALL MARKET SHARE PERCENTAGE IN THAT SPACE. AND SO THERE'S A LOT OF HEADWIND FOR US TO CONTINUE TO GROW. AND IT'S LINED VERY NICELY WITH THE STRATEGY THAT WE HAVE IN THE DATA CENTER.

CRAMER: BRIAN, JIM –

KRZANICH: SO YOU TAKE ALL OF THOSE, WE THINK THERE'S A LOT OF GROWTH IN THE DATA CENTER.

CRAMER: YOU KNOW, I GET CONFUSED SOMETIMES BECAUSE, I MEAN, FOR INSTANCE, SECURITY UP 5%, LINKED UP 12% YEAR OVER YEAR. DOESN'T GET MENTIONED. IT IS A GREAT BUSINESS FOR YOU GUYS. AND THEN YOU THROW IN THAT CHINA'S WEAK AND THEN WE START THINKING WELL MAYBE CHINA'S MORE IMPORTANT THAN I THOUGHT. THERE'S JUST THESE LITTLE NUGGETS THAT YOU PUT IN THE CALL. I DON'T UNDERSTAND WHY THERE ISN'T MORE MONEY PUT BEHIND SECURITY. AND NOW I'M REALLY WORRIED ABOUT CHINA. MAYBE CHINA IS FALLING OFF A CLIFF.

KRZANICH: WELL, CHINA IF YOU TAKE A LOOK – YOU GOT TO KIND OF LOOK AT IT BY SEGMENTS, JIM. SO IF YOU LOOK AT THE PC, CHINA WAS DEFINITELY THE AREA OF THE LARGEST PART OF THE WEAKNESS THAT WE SAW IN THE PC SEGMENT. BUT IF YOU LOOK AT THE DATA CENTER, CHINA WAS RIGHT ON TARGET AND DID VERY WELL. SO, AGAIN, YOU SEE THIS BY SEGMENT HOW ARE THINGS BEING EFFECTED AND YOU KNOW, I THINK IT'S THE DIFFERENCE BETWEEN WHAT AREAS ARE GROWING AND WHAT, WHERE – EVEN WITH THE EXISTING DEVICES DID PEOPLE WANT TO STORE MORE DATA, GO TO MORE CLOUD ENVIRONMENTS. YOU KNOW, THAT'S GOING TO GROW NO MATTER WHAT. VERSUS PEOPLE GOING OUT AND BUYING NEW DEVICES. AND WHETHER THOSE DEVICES ARE PHONES, PCs, TABLETS, WHATEVER, YOU KNOW, WE SAW THAT CHINA WAS A BIT WEAKER THAN THE REST OF THE WORLD. YOU'RE RIGHT, SECURITY WAS A GREAT BUSINESS FOR US. FPGAs WERE A GREAT BUSINESS FOR US. WE TRY AND MENTION ALL OF THOSE. IT WAS IN MY STATEMENT ON THE EARNINGS ABOUT THE GROWTH OF THE SECURITY BUSINESS. WE'VE DONE A GREAT JOB THERE, JIM, REALLY FOCUSING DOWN, FOCUSING ON WHERE WE'RE GOOD AT SECURITY AND GETTING THAT BUSINESS BACK TO GROWTH.

FORTT: ALL RIGHT. BRIAN KRZANICH, YOU COVERED A LOT OF GROUND FOR US GOING THROUGH THE FINER POINTS. THE PC MARKET, THE DATA CENTER, THOSE OTHER SEGMENTS. AND OF COURSE, THOSE LAYOFFS THAT ARE GOING TO COME WITH THE RESTRUCTURING THAT YOU HOPE TO EXECUTE OVER THE NEXT YEAR SAVING $1.4 BILLION ANNUALLY. THANKS SO MUCH FOR JOINING US EXCLUSIVELY ON "SQUAWK ON THE STREET."

KRZANICH: YEAH, THANK YOU GUYS.

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