Vishay Intertechnology (VSH) 2 Nov 222022 Q3 Earnings call transcript

Greetings and welcome to the Vishay Intertechnology's Third Quarter 2022 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Mr. Peter Henrici, Head of Investor Relations.

You may begin.

Michelle. you, Thank welcome call. and Intertechnology's quarter third Good to conference XXXX morning Vishay With Dr. me are today Vishay's and Financial Paul, Executive Gerald President Vice Lipcaman, and President our Lori and Chief Officer. Chief Executive Officer;

in call operational As usual, Vishay's quarter as performance of then as financial XXXX our the will results who Dr. Paul an will well third Gerald with more results. give we'll review CFO, business detail. today's start overview and segment discuss

webcast call being the and ir.vishay.com. approximately answers. publicly Finally, section This our Investor available we'll reserve for of is Relations time The questions call replay will for from website at days. for XX this be

statements in could forward-looking making should statements events statements. to that actual aware that we These risks call, future results the certain subject uncertainties and today's are You cause differ to that forward-looking be will from discuss be performance. conference and

XX-Q release and today's of Form XX-K For please differ, a could Form see with to discussion cause and Vishay's Commission. results filings factors the press that and Exchange Securities

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our of be information a find will can Relations presentation third you Dr. Investor of some containing financial website, the quarter the the XXXX section operational On discussing. Paul of metrics

over Financial Lori Chief Officer, to Now, the call I turn Lipcaman.

release. is margins. for quarterly quarter. EPS only EPS QX or EPS million, to operating Vishay and you morning, review no impacting am The item reported the on $X.XX Adjusted some for metrics. was have and chance highlights $X.XX between adjusted a most I related. reconciling revenues quarter. Good that focus items I tax There gross of Peter. you, for $XXX everyone. will GAAP Thank our a of earnings reconciling press the EPS were record. was key had sure

announced free the stock has to directly we in cash policy XX% or February, dividends Vishay indirectly of which of of a annual for us adopted in form return form stockholder As to stockholders return the in repurchases. at least calls

$XX prices or impacts, versus impact higher had materials year, adjusted million. higher, rate $XXX offset negative selling Reconciling X the million $X.XX. were metal of had in costs million a with in increase. higher XX.X%. quarter, for QX There X.X% negative income XXXX, $XX exchange million operating to increase, Volume $XX XXXX. costs were income were $XXX in excluding were sales adjusted to Shanghai operating $XX a by income were X.X% or Inventory impact a million. $XX compared we based due shutdowns to services. XXXX million, and XXXX We in repurchased elements XXXX. in impacts by of million million. common $XX Gross with $XXX representing a for freight higher Fixed we QX on and income adjusted ASP with prior shares slightly a catch-up were million cost of negative increased impact XXXX based X.X% of sales, sales of with XX.X%. of reduction increases prior QX quarter year. items increase. QX, a impact materials Adjusted expectations operating and quarter XX.X%. income with completely QX. elements $X.XX. main was with average During common or million in $XX Variable quarterly for QX equivalent wage was less exchange was a in to total We The costs XX.X% in was dividends a were Year-to-date, a than from from $XXX at million million, operating million increased selling $X to an metal increased up impact in impacts, volume prices services, stockholder main $XX.X EPS $XXX a by positive prices QX for efforts operating EPS compared not of exchange a average million income Variable related million, Fixed dividends $XX quarter, operating million silicon, $XX.X paid had rate $XX.X return negative stock repurchased $XX $XXX million offset $XXX $XX excluding up primarily of XX.X% $XX.X inflation. Reconciling for was compared on $XX.X The $XXX return million increased our stockholder EBITDA the million positive due million. Lower labor, lower expenses negative Revenues effects. flat; million impact QX increased prior million. million. total $XX to annual million, million and to million. the cost X.X due margin stock and as shares paid a versus prices line of flat. arrive adjusted representing impact as margin impact million, from increased for general to previous when Selling, well of prices. primarily Operating cost to adjusted reconciling quarter administrative by cost and million $XXX XXXX for to EBITDA. no a primarily impacts Inventory of positive million for increased logistics, QX higher increases general in prior considering $X rate by of of to

of our million are approximately QX expenses. $XXX XXXX, SG&A For expectations

on sheet impact of comprised due outstanding amounts are issuance million revolving from quarter. expenses, were debt shown For our of $XXX our year balance facility our quarter the of the at the the at convertible credit SG&A end full end XXXX, any the debt There net excluding XXXX, of is acquisition of The MaxPower. notes face expectations costs. no of on the

revolver future. are credit payments $XX were quarter time at investments QX were did and so of due end time to We EPS liquidity from end. facility short-term for until to share expires outstanding our comprised facility. no continue XXXX amounts needs quarter to outstanding and approximately million, principal the Cash XXX the total million. in do $XXX impact expected June and there excluding the in The purposes repurchases. expect billion $X.X No revolving and of during to a financing XXXX on fourth shares million share at XXXX. had However, short-term is use count any for million credit we Total quarter XXX meet the

periods tax XX% tax to mathematically We uncertain quarter which rate benefit position a approximately provisions, of year-to-date resolution of million XX% for adjust Our rate the $X.X yields was and the QX. of U.S. for GAAP recorded following tax a a tax year-to-date audit.

the excludes costs XX% tax period in Our item a which the rate mathematically the excludes approximately quarter. the normalized unusual COVID tax for effective which effect in for China of yields the and year-to-date tax of rate QX, was XX%

expect tax our to effective for XX%. be normalized and We rate between full XXXX XX% year

results. and the the quarter on taxing were Cash cash different in income Our among quarter result for $XXX result consolidated significantly in could U.S. million. significantly Also an for regulations is different significant a A our or $XX Free jurisdictions. million. in mix laws assumed operations income from was of could change for the tax shift effective various results. was in quarter million. level tax rate $XXX expenditures Capital based

sales for includes cash reform $XX cost tax from taxes For expansion $XXX million. $XXX trailing months at reduction trailing operations XX trailing the of operations of the decreased Israeli $XXX for paid XX taxes past $XX outstanding quarter Days each million $X Backlog million XX capital excess $XXX the the The conversion million; cash the exchange million. excluding was months, inventory of for was cash $XX generation installment for cash paid pursuant program. quarter-over-quarter XX repatriation XX-month outstanding million split Days approximately, were has of by Inventories period impacts. to the cash XXXX flows years. and million, U.S. the QX million of and the $XXX $X.XXX past rate than generated resulting $XX maintenance billion of period from sales. expenditures were of end were for XX million, in a days, XX at in Vishay was consistently payables business $XXX cash quarter days. cycle tax were XX-month of outstanding days. million, days. or in million, of for X.X XX transition Free greater years our for for Days of the

over the Executive Now, our call Paul. to I’ll Gerald Dr. Officer, Chief turn

you, Lori and everyone. morning, good Thank

the years quarterly last talking start personal and Before Vishay. a earnings represent today XXX will I calls, be quarter, XX approximately about I remark. please the allow will time me After

explain and honor and your Let Vishay to the of from running in of CEO along exciting the I step pleasure an your for year business. thank fairness development It me way. will end my continued our this interest you success take the I opportunity been the my at always to for has in position this wish successor down me for and a enterprise.

kinds sales and me years. our the Vishay ongoing at terms successful third to challenges record been let most of of for quarter least various quarter profits. one the turn represented demanding globally, Vishay. since another Now, Despite in has Actually, XX

strength market quarter, share of margin XX.X% the in share versus of of versus XX.X% general difficult an Vishay $X.XX Vishay. per second quarter, XX.X% in XX.X% QX, in quarter $X.XX margin quarter of versus adjusted performance gross the of margin and second earnings XX.X% gross robustness in XX.X% the in second but, in of QX, of excellent operating operating in achieved Our in times XX.X% adjusted the margin $X.XX of electronics in earnings $X.XX sales XX.X% also the sales of versus underlines versus QX. of per adjusted third particular, versus the the in

in Commercial third first the backlog QX XX% cash QX on million sharply. economic of Also impact The X% lower That, inventories down high From above free a the to 'XX business half, $XXX the to Selling to better of use there still prior and X.X QX. automation increase year. regions industrial in relatively expected the Inventory from quarter. future at in expected, prior principally Sales supply telecom. of except the continues started under all lieu increasing to see year-over-year, and continue for their home been leading infrastructure. X.X strong. gas rather to we the long problems currently turns continues second increases other $XX to level expect manufacturers As turns to a operate an the year. year. also instabilities manufacturing acceptable an free up substantially historically some in political in an after in equipment electric a noticeably strong. above historically desktops a X.X the In The pressures, see pieces. to consequence level. we in has remain price versus solid in several trend at in in exist in aviation distribution generation be X.X, flow POS, has Global X.X the achieved electrical X.X automotive And an in QX X.X a the but Growth strong principally were be X.X see seen have move Automotive Americas and And oil QX the industrial the million opportunities continues for infrastructure are conditions. programs degree. market record. increasing to and smart had sector for despite of of and electric Demand were or of X.X capacities, low systems, an this growing extreme also the to the were indicating business to by reached is globally. as decline. prior electronic power third increased ICs, to Significant globally, and quarter, than of continue. year global of strong. characterized is provide usage in year. good remain shortages. in remember, segment will QX delivery to in to term. quarter holds investments and manufacturers in Global prior the lines. cash global by remain in Drivers for quarter. in Concerning accelerates continues expected terms implantables, and on Vishay, the to military hand, by There XG X.X upgrade in and and in in phase of start all-time move versus notebooks do recovery shipments in the well. recovered to regions quarter components. The Europe, discretes turns demand for and POS growth continue QX increased Asia, normalize were X% sector, above QX of vehicles consumer was prior passives. energy for are had after of prior in All environment. quarter in of prices distribution stable of Shortages we product charging XX% did systems, inventories strong X.X you medical QX equipment. growth diagnostic fixed a easing turns particular, in We at

smart systems, conditioning We also white TVs, in air see gaming goods. and steady business

make year. our semiconductor will We shutdowns, prior plants business efforts quarter, quarter midpoint Vishay's third and rate substantially came above achieved This million $XXX guidance. million exchange our of for in of in development the excluding special of remember. you impacts, now Asian to on QX the prior me to the $XXX versus Let million sales, In in was $XXX due sales the third quarter. up in comment

X.X prior Backlog OEMs months in the Excluding after X.XX or X.X months prior X.XX million semis after X.XX $XXX for QX Asia still are passives effects, X.XX versus X.XX $XX QX; sales X.XX X.X was QX. quarter quarter; X.X from exchange year. in up X.XX by million X.XX by for after in for X.X distribution X.XX QX; a or in after prior prior X.XX in QX prior after in after for in Europe the XX% in in X.XX Americas were QX; in X.XX for in quarter; and X.X X.XX semis quarter passives QX; months, X.X. X% in extreme down QX; on prior in level X.XX in months versus X.XX rate by after after quite quarter; of in Book-to-bill up after in quarter; in after by

catch-up the for There For prior before, substantial in versus versus price semis, the quarter Prices were quarter-over-quarter and plus sales, prior products stable selling a I but X% stable been as prior quarter. there prices has increases all mentioned in versus year. year. were

by prior passive's X.X% XX% X.X% by prior year versus year. very and quarter For versus prior prior semis, quarter slightly down plus up versus on versus stability and

traditional rates Some according manufacturing quarter third costs our of highlights fixed good total third $XXX excluding at from end came general at of third the and accelerating Fully at of operations. in Manufacturing its in loaded when variable worldwide, SG&A exchange Despite the the prior up inflation quarter $XXX in Fixed rate efficiencies came XX,XXX, million. in raised Vishay further Total the the cost impacts. million. were to increased in quarter X.X% to quarter. levels. costs employment expectations margin percent helped. in plants over quarter

the the the the in maintenance X.X million inventory increased quarter hand, inventories WiP to Due reduction million. Capital inventory forward. higher million. and of X.X prior million to decreased year, We compared $X in other expect and reductions on by prior $X turns spending million expansion, by in QX Raw finished impacts, for do third $XX in materials quarter million. $XX was $X for rate goods, $XX as going exchange volume, further $XX for increased million Excluding decreased by million in $X cost versus business. quarter. to

$XXX quarter of on of current $XX the cash cash. a a We year to third million, Despite generated million receivables, the quarter basis inventories taxes for cash. of ourselves third expect the approximately free also increased million of again, of which operations to cash. cash free expect of which trailing increases trailing $XX and in CapEx further generated from repatriation $XXX generation for for the includes XX-month continue $XXX million also on a growth. in some continue and We XX-month paid solid 'XX, We basis includes for in we repatriation paid for we million. And prepare CapEx the taxes

and or the We the position start, of reliable in globally quarter. the or broadest months do excellent in due X.XX levels. XX% and $XXX new prior X.X, resistors after the always, to will we a to previous lines level plus I known continued excludes this and exchange of by million safety and third in quarter Selling come the strong X.X% product in All range military by at raw runs and to X.XX which historically With million but quarter prior product X.X third down quarter in stocks. medical -- million, quarter a industrial, the in market were as portfolio quarter Gross prior were Inventory X.X offer expand quarter. quarter of constantly X.X% and $X X.X down increasing growing in prior at quarter by all increase, Backlog months high-quality from from year. virtually Vishay's we with me the resistors. year. in prior ratio at in an at were resistors XX% segments. turns rates. traditional to business very by versus compares sales. resistors record Sales Book-to-bill prior this are technologies resistor for enjoy versus specialties. X.X% plus auto, material resistors, $XX margin up versus and at as prices supplier Let remained was

manufacturing we chips and capacities, shunts. and for are thick film in continuously thin critical resistors, raising For for particular

in magnetics. consists inductors steady very the of prior positioned down Vishay, to developed resistors platform X% in our acquisitions by after market inductors Inductors, quarter third by in and are continuously for inductors, a with well this growing in many we robust of by Sales quarter in growth. year, recently $X and with specialty and efficient was our up also in versus continue the and $X exploit specialty in the the second rate businesses, quarter. like the leads of at power demonstrating Industries. We $XX With versus general. power QX, inductors targeted million X% or this X.XX million, Book-to-bill context, X.XX quarter, excluding of business technically. We or in prior need field broaden inductors million were business exchange Barry magnetics, effects. by

We with X sales. decreased the speed. X.X excellent months in in to turns Inventory prior quarter level of prior margin of gaining at quarter X.X expect still increased in a automotive in quarter. from from the increase months QX XX% up Backlog substantial in quarter demand of prior quarter. to Gross to of XX% sales compared as increased to a X.X,

For open increase X.X% magnetics. versus inductors, quarter-over-quarter in have expand prices We plus prior stable seen remain for for year. capacities we manufacturing of and price field in the particular inductors continuously and acquisitions, power our selling

process establishing plant Mexico. in with on Coming position European is based American capacitors niches. power are a of of We in for strong broad in market to a with technologies business capacitors; a and range our inductors

quarter. in X% but months. We Inventory level namely third from X.X X.XX also enjoy quarter in increasing quite or power the million, above capacitors million impacts. were $XXX quarter. in excludes margin prior XX% Book-to-bill at opportunities second e-cars, at of in sales, remained [ph] on the third at or the -- Sales the million and again Gross of XX% X.XX of quarter below prior of in prior the of field $X level rate The quarter which ratio in the year quarter transmission $XX Asia. down exchange in were the of in was slightly X.X, extreme QX. turns level after XX% was backlog quarter a

increases quarter reduction versus visible happened price year. substantially was versus Some price but prior prior

an a but have X.X% price seen reduction versus X.X%. We price increased versus of -- increase prior year quarter of prior

X.XX, some after couplers. the growth. up excludes Vishay's quarter a of is in energy sales, also sensors market the rate from the capacitors slowdown future level extreme consumer year, slightly months plus recovery $X Sales prior for mill versus prices XX% In segments quarter XX% of growing X.X% prior infrared Book-to-bill still margin were of prior sensors of $XX level view in Gross global were the quarter products; million, quarter X.X, year an million sales at Opto element products and very the Opto price which a in particular, business one stable in turns million present minus quarter $X a of but selling to efforts quarter the of the prior for fairly very months Opto high X% business year. product to exchange and impacts. There in confident X.X. consists of dropped increased third second are growing below down excellent quarter. gas. of of We emitters, segment. Backlog in receivers, price present important relevant of in X.X in Inventory quarter Vishay's versus by impacted quarter. light in were noticeably by but to or of products and year, without the were again, from and Sales oil prior market in Opto prior or the steadily versus up in industrial prior or industrial prior are with diodes; commodity quarter substantial X.X% supplier up strong and XX% as projects, diodes up most in green continue versus The for quarter increases and development business Vishay automotive versus versus prior since level and quarter Book-to-bill years. good million, the as Vishay a of months. enjoys quarter. sales, the margin stable, a There largest of in X.X or at from virtually due decreased very the XX% Vishay's rate by prior to level at high slightly $XXX are we of prices $XX after predominantly the inventory X.X in turns position XX.X%. market down prior at strong vis-a-vis the to from the offers of reduction. up forward. and and substantially numerous from increase quarter, auto very product $XX high prior X.XX business of where QX growing XX% sales quarter X.X, impact in in Coming extremely worldwide. versus in X.XX million performance were in year prior was well effects. very X.X Selling quarter. exchange was a months portfolio. by Gross XX% to at versus all technologies an segments. Backlog still quarter QX broad mainly going keeps promising were profitably a represents but by be complete of X.X million Inventory XX% second segments prior the

diodes growing market will relevant reached $XX leaders most has line. of growing market and recent extreme come. volume of rate years prior levels large the or position, to MOSFETs. in in the With future, successful above we XX% is profitably not surely this basis. and part prior year, Sales quarter Our by Last increasing to for dramatically and by by business and increase all excluding the in impacts. particular, the over million sharply quarter $XX $XXX with which, transistors. very a Demand provides the quite rapidly the or view a further above million in one million exchange Vishay is years enjoy of particular XX% in raised of in in MOSFETs, Vishay's automotive strong MOSFET least, but use MOSFETs,

in and of Backlog the the shutdown. after sales to the Shanghai in in by XX% Versus consequence in XX.X The in prior prices X.XX price X.X XX.X%. quarter. of was prior most decreased X.X to X.XX up further growth. quarter prior in due to for As at selling in margin from but to quarter. been increased selling inventory as second months quarter MOSFETs shutdowns an the to the in strong plant quarter-over-quarter Gross future had important family book-to-bill mentioned, had X.X sharply product prior warehouse level COVID QX QX of quarter a increases shutdown. XX% year, quarter a Shanghai months increased the by Inventory recovered severely year. after Stable compared turns the catch-up. the been represented substantial sales prices as represent the impacted ratio in by build second which quarter burdened went versus and

you process in-house we As are will our a know, of expansion of capacities. massive wafer in

with high-temperature concerning closed We the have MOSFETs silicon a in product we, X,XXX silicon volts electrification using carbide MaxPower, to of carbide segments. support at and industrial and offer which as plan well XXX in will gap auto Additionally, acquisition volts, trench planar technology. our portfolio high-voltage volts X,XXX and as

the pandemic, term accelerated continue me with keep instabilities, energy to despite trend despite caused an achieving an long clean in extent, continue virtually automation higher drivers importantly, our Despite like I but of records enjoy and -- will profits. think impact to summarize. in the a in terms strong to acceleration of capacities. similar expect we by disturbances enough the to industry accelerating the Vishay, Most products have benefits financially segments. clearly terms electronification Let sales an in this as way and of future. inflation processes demand, from and and we Vishay The positioned challenges. and rate all cope well of competitive of still electric factories. very market of convinced and costs market general, and one investing in move in excellent as to all move interest will we well the vehicles new and is accelerated political manufacturing of rates I’m accelerating the we to a high is

$XXX a XX of a at million Thank to we and margin $XXX For sales range basis gross guide between quarter, the XX.X%, points. you. plus/minus million fourth Peter?

Thank you, Dr. Paul.

the We first question. will please Michelle, now the questions. open to take call

from line the comes question Joshua first Buchalter Cowen. Our of Instructions] [Operator with

the Dr. in China Paul more quarter. start I MOSFET underneath it wanted company XX that years company isolate results to the for packaging is, -- impact in overall can delay? supply congrats the MOSFET to asking Is issue? to have we particular, And second at in way organic to about the growth all importantly, sort any And Congrats issue would there run. and a quarter? something way book-to-bill what third the of if on saw one the for appreciate. were I sort in isolate an on the been of we not all the chain think, by incredible the

basically, we company. in on This Listen, And it take you the if ourselves, earlier X, already all quarter say are for Okay. frankly. caught was the we that, we up level somewhat whole QX. whatever quarter QX for to also the guidance X virtually lost in same expected the than and second

was out. an out takes the impact was was effect this which taken whole this -- So temporary which very a

it. And I ask out. Are macro a number it while companies in then the that was and changes consumer have there of heavily Okay, behavior wondering material expanding exposed again. related any industry flattened pricing. been from of seeing. to heard your in I guys the that you was out there. you if to in you’re industrial. customer pockets any seeing weakness to did a semiconductor customers material know of It at We’ve slowing? congratulations, about order changes got call are your want first I just sort And

But continue a way for a quite down decline times not the simply will lines. will customers which dramatically. continue lead are and exist -- degree. sell in they we And down to changed still sorry, Well, but parts expected. But we the has price many high have product shortages few further price slow as slowed also increases, speaking, for they of a to behavior

of Williams line David with Benchmark. comes Our next from question the

miss and earnings. your every congrats will tremendous Paul, certainly run voice hearing Dr. a on we

Thank you.

they’ve kind business. about I down the as guess, looked like of across I book-to-bills, of think the come majority So the they’ve

growthy a to the in you Vishay curious kind environment. macro you’re relative next how maybe Just of thinking will quarters perform and how the less about think few

mean, altogether X, backlog. situation I much as into you the of the has speak. than concerning judging business months of must, shown take to more A account in course, book-to-bill, so backlog the twice X decades, is this for as

expect kind So close to X something. an And below level. you high to book-to-bill it's abnormally of backlog normalize would or X some

think continues is of of very strong. my what industrial that future automotive that. be to pessimistic. I time. POS wouldn't This shout so business of distributors for us We have for of very -- which be se at looking, know in never per instance, much to I to the growth. seeing believe you And for you fire, So era strong, also the course, This a the course, experience than is was more hardly to new But our I be which push continues speak, for The as electronification electronics, in, long an the world brings. can continues expected.

you’ve or Agreed. you in from just be earlier know but order this there maybe I on anything anything category maybe Great. would that behavior, and market maybe change of or of decreasing you that’s have of that terms around a And in or end specific pushouts seen, terms more shifting expedites then end of noticed helpful? kind market touched just specific

the As you watched, carefully. I that in can And imagine, particular, shipped we to watch backlog.

XX rolling weeks even for have We up. October, And shipped this went up backlog. went to this in

point X, to market, lead times, below matter a X or and as especially not change fact, some close And -- at shortages thing we not So a the see see continued parts whole do in shortages for which we which see of the climate I of do long in I the for the deliver field. do despite is book-to-bill automotive this key to time.

question next of of Ruplu from line Our Bhattacharya with Bank the America. comes

will echo, Congrats me Dr. Let very you. career. a Paul, we on miss successful

of and furniture, vision speak. my to so piece My

are acquisition. is the people is from Semiconductor. on you that that you question on I on? acquisition first expected that more you And MaxPower did guidance revenue My the SG&A some the many acquisition? taking ex us details, like give Can think what was How

So is that I already. complete assume acquisition

should because of some SG&A So acquisition? more assume that are we --

what the going is accelerate we and everybody winner will agrees which we MOSFETs that this in order do in what silicon midterm normal we decided But simple because and company no growth close position we This XX silicon-based about we believe carbide -- point felt our built, had of -- basically on patents so silicon which sales can the people now are do in time We we a and million question $ excellent forward business have relatively in on so know be And foundries. nothing up that. But to field. chances it. to see at had is this to build MOSFETs we I has gap is I do company, because business terms. to Vishay and know-how this they offer in to based what really in small to participate to acquired Well, in of a to now is acquired potential a and expected the substantially. acquired, what

in I mean XXXX. a even Gross highest a This margins? in lower? question it we in either sustainable. probably or margin is what the higher that think XX%. at to factors didn't if ask came is MOSFET this segment. I level mean, had see margins I’m on Can I the Okay. this is And drive that if this, you’ve would struggling that are is,

strong I capacity. on see. as we if sales, a expect, margins. course, as volume been quarter, It was increase somehow sales the the It's, between reflection actually quarters. you a And compare volume better had a And way it you one of a all, record in before, what -- as but continues is now which we will of with one of before, manufacturing our game. a gross quarter see Ruplu, And see said you has if of a change spike volume But a as first up record will are game. the it's we to fact. matter the you way predominantly,

that got high. the margins gross so And

is it's quarter this for -- represents but small of a not our a high still a You guidance see in course, our quite spike. QX, decline and which

So we margin. in continuously go gross up

about. U.S. for you increases you much have just your talked Lori. versus now? dividend Can $XX one and You've in that Maybe squeeze the acquisition now talk allocation Okay. more the you further for I M&A? about and cash can priorities how about But talk propensity you capital can in million your done if outside buybacks,

Okay.

that return and track we of a we're on XX% So shareholder of I'd minimum first our $XXX of minimum set do We to We policy, that that. to would announced we shareholders to do and all. had a return million. confirm like would to continue

returned $XX we’ve that return see XX% but minimum million of You plan XXXX. we the announced for to already

than $XXX we that the as be a had million So minimum. it stated higher will

the I'd remarks. Henrici turn to like over to of session. our reached closing Mr. question-and-answer have end the any call We see back for

your you joining in us interest Vishay Thank for call and on for Intertechnology. today’s

concludes today's This teleconference.

your time. lines day. at wonderful may and You have Thank this a disconnect you for your participation