Vishay Intertechnology (VSH) 10 May 232023 Q1 Earnings call transcript

Greetings. And welcome to the Vishay Intertechnology First Quarter 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded.

pleasure your my Investor Peter now Relations. is to host introduce Henrici, It you Thank sir.

begin. may You

Joel Christine. Officer. you, first call. today Lipcaman, Chief earnings Intertechnology's and by and quarter conference President Lori by Executive joined Officer; am Chief Thank I morning XXXX Good Financial welcome our our and Smejkal, to Vishay

being section our is available is in This morning our live for This release results broadcast website first quarter. ir.vishay.com. Investor web earnings be Relations of the we reported A our at copy website. and of through accessed over the call can our

In and replay via addition is today's call being will be website. our recorded available on

be we the at ir.vishay.com. we will slide a also referring During posted which presentation, call, to

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

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

in including measures. our release this conference and information call and on are We non-GAAP on various GAAP press

in included we find in GAAP full have non-GAAP press comparing our ir.vishay.com, to when as results. useful We as release believe non-GAAP well the reconciliation on a posted will presentation our which you and GAAP

by should considered they information the about be of in GAAP useful businesses we provide We use measures and believe because non-GAAP operating performance conjunction our measures. investors with

Executive Joel call turn Smejkal. the Chief I over Officer, to and President Now

and in I'll the start guidance medical $XXX and with positive X We first products industrial defense automotive, on everyone. our all-time demand solid momentum market million in Welcome high to Vishay quarter of continued sales both high our to results aerospace specialty segments. sales to of end saw of you, range. first of above delivered morning, conference deck. slide our Thank remarks Peter. call. strong quarter my revenue the presentation Good

details markets. about Some now these end

to quarter represents fourth of XXXX. that first vehicle in the chain improving. OEMs grew total versus constraints are now X.X% our XX% replenished which revenue X.X% of inventories the supply the regions Automotive, compared quarter and all

saw also greater production. ADAS vehicle electronic products content, continued in We demand and support electric more features of for

is infrastructure at revenues. here strong a in fourth were transmission. XX% segment first where our manufacturing saw This Industrial. We plus largest Europe total collection energy quarter versus Sales the last supporting and renewable below and we of smart flat and automation are quarter. year's pull-through

of the at quarter and represents equipment Medical of XX.X%. increasing Compared grew an we're Medical. X% of areas fourth QX XXXX, to the grew it devices. and implantable over total in all-time This revenues. high promise, diagnostic quarter and in revenues medical showing XX.X% segment the medical particularly first is

for on quarter such in the systems allies. all-time for market XX.X% fourth missile supporting the XX.X% Aerospace as U.S. QX, growth quarter by over which at over high of and systems, guidance and many X% and also for revenue that are its driven radar an customers is year. the this government total constitutes being Demand first different advanced defense applications of last

leader the the parts on supplying in are We list. passive U.S. military qualified components

driven accounts. revenue in increased strategic displays industrial from of revenues Looking slide our middle by sales plus channel. the mix by customers OEM the at the automotive X.X% chart demand

which and There Americas, was modest was flat. led growth were the slightly by Asia. POS a in Europe. did Quarter-over-quarter, lower in POS revenues Distribution however, X.X%, grow

the industrial as X.X% EMS and Distributor telecom strong. revenues medical an aerospace increase well end inventory declined markets in demand remained for value. inventory weeks, although; quarter XX defense rebalancing; particularly some and to at consumer, due was with at computer automotive,

in make full returns. optimize to connectivity, collectively drive make mobility new the mega At sustainability trends and are end-markets needed and we running ground of the our Vishay, same to hit growth that our the time, changes opportunities to these creating inside in advantage

all locations shift to, employees to all Across we our first. begin in mindset think customer

We but do. placing are quality a priority in are having focus everything on we product keeping we business-minded and a reliability our disciplines, operational

greater support demand, market-based and setting customer capacity A grounded that customer contribute a processes to; of a design-ins, all fostering multiyear ambitious growth business of plans which new are aggregating intelligence. approach, planning change developing culture in to

support you distributors with channels. have or other said, initially support your Vishay their Vishay went and production. off delivery meeting not In capacity but products took have in They EMS, to designed to many and other limited could get OEMs customers

to them prepare plans our service improve to demand. their customer engagement, expansions I've to presented improve support our and customer our capacity our

quickly. expressing they're them heightened this new to approach bring interest Now in to Vishay,

grow not execute the Inside senior operations, steps embracing and our out all activities, improve plans plan. employees, this how to the energetically their strategic to but their our accepting to change, are tactical opportunities and of improve Vishay to developing market to customer-facing the only challenge figure leaders how defining to

This of they employees, way the era Vishay, quickly in the as company-wide spreading this specifically I the throughout organization. change, me thank to is of new join Vishay want mission.

growth now very much Their On steadfast returns. to three-year our at quarter's Vishay outlines commitment plan, of broad appreciated. drive last to shared the is speed and excellence call greater and I

the year, our of in full all change a addressing for continues potential. to to aspects XXXX staging initiatives, our business. number foundation needed Vishay the to implementing We're a customer-facing busy be realize lay of

for Lori give I'll first initiatives, our after Lori? a results shared these progress the quarter. financial you has on update

the $XXX.X guidance. We morning, rates. quarter Good the first million my million the Thank Joel. of above you, quarter review X. $XX.X from slide exchange our benefited I'll start of on fourth results for high-end everyone. were Revenues

higher a offset volumes. to decline in quarter, in quarter X.X% a increase Compared reflecting the that and the X.X%, grew year, decline pricing X.X% more revenues first X.X% pricing X.X%, fourth Compared than increased a reflecting volume. in revenues to last

end down. returned at the total quarter At stockholders, end comprised of time coming million to months backlog X.XX of dividends stock million. and million and as consolidated for prior to repurchases of $XX.X the quarter of book-to-bill compared a months, of $XX.X We lease X.X $XX.X X.X was Vishay was started

income $XXX.X X, of statement forecast the Gross for highlights. XX.X%, a million margin present page next The to fourth of range compared our of XX%. XX.X% above was a profit substantially the for in margin and quarter slide

quarter inflationary Compared margin pricing, offset increased to on the partially and material costs. costs and lower lower fourth and freight and material efficiencies manufacturing improved volume yields, and by labor

reflect energy cost flow-through to guidance to logistics an lower-than-planned better-than-expected gross pricing MOSFETs inventory fixed Compared for profits absorption our the and and cost higher-than-expected build. margin of related

annual equity incentive higher an and the increases for compensation. for we SG&A million, than $XXX.X expenses fourth accrual $X.X $XXX.X were reported the million primarily million, reflecting quarter, salary

over million by Operating first XXXX. on $XX.X higher the quarter expenses. increased million profit versus Operating gross income fourth higher or of increased X.X% offset $XX.X operating quarter the partially income

margin Operating million to EBITDA compared EBITDA for XXXX. was an of was the XX.X%. margin for fourth XX.X% quarter XX.X% quarter $XXX.X first XX.X% and the of for

for this an Our same quarter. to was tax was for rate as EPS $X.XX the normalized adjusted share effective per effective last $X.XX the share compared tax basis. XX.X% quarter, per the rate year on quarter our GAAP fourth

$XXX.X the were our expansion $XXX.X metrics. conversion XX XXXX December customer to support present days in projects we in and days. was million segment. in as ramping end, On at DSOs some at capacitor million from unchanged are resistors slide XX X X.X% quarter DPOs XX, Mexico as quarter of a fourth up were of cycle increase capacity and cash Inventory compared we our

the XX the quarter conversion bringing levels to cash days to to for were the inventory the first inventory Corresponding quarter XX for cycle in increase outstanding days. days days XXX compared fourth

Turning to slide X.

the for primarily can cash $XXX.X quarter than reflecting You lower fourth flow in that see operations million the the increase inventory. first of was the from quarter,

in compared increase total $XX.X XX.X%. last to Total for of million expansion year, of $XX.X $XX.X CapEx million capacity quarter was with an the million the invested

year. for and On X.X% total me period a quarter to fourth was basis, for for Free a million $XX.X compared million same quarter excuse X.X% the negative to trailing $X.X XXX last CapEx cash million -- revenue flow year. XX-month $XX.X compared the the of last was

and the first repurchases. million for returns quarter at Stockholder We an $XX.X to of billion average shares million investments X.X quarter revolving quarter. stock short-term $XXX.X million per at Total was liquidity and billion, $X of for cash during availability facility repurchased credit $XX.X of a for including consisting $XX.XX the quarterly end. on million million, $XX.X price of dividends amounted and share $X.X

to call, growth. use revolver execute we May with entered million credit our June we $XXX to flexibility extension meet from short-term and the financial revolving operating and us for earnings our mentioned to more On facility on provides needs. from XXXX. our amendment and XXXX plans time extension amendment of to time into ample than As Monday, financing This an

guidance. Turning slide to for X our

minus Gross the million. build the to and margin expected are of down. XXXX, the XX of quarter as between second million plus capitalized XX.X% the inventory the revenues expected quarter be basis to range of worked first cost $XXX $XXX or points be are is during For in

expenses the be $XXX million expected for the full and exchange between and and million rates. $XXX at are for $XXX year million quarter SG&A between to $XXX million still current

normalized approximately XX%. expect we For tax effective XXXX, a rate of

in remain our of stock committed of to return stockholder dividends the Finally, repurchases accordance we and distributing to free in policy. form our XX% cash with flow at stockholders least

least we at XXXX, $XXX return For expect million. to

now call Joel. turn the back to I'll

Lori. you, Thank

margin are XXXX near-term initiatives slide drive as last during introduced our growth On our and go we to expansion. call Let's revenue X. I we February, that advancing

XX aligned sustainability. and business segments We applications mobility have megatrends growth each which lines and multiple key channels product serve that segment, business with the most identified multiple across connectivity, of for market of are

two-thirds the To in of are increase of spent year expansion for Approximately highest on projects. highest this more return capital XXXX. capacity million expansion of gain $XXX CapEx, and to CapEx we total a this $XX million than them, being share growth approximately and support is opportunities, investing

CapEx of of investment, was million, we expansion to continues down $XXX additional capacity increase our This support projects. additional nearly lead last That in capacity land times, giving place throughout incremental XXXX all quarters for spent and the us year our lines. product XX earmarked that will took the an bringing when and XXXX, key which

projects this in expansion capacity focused We are investing China. year of outside on

they customers located, being see pursue manufacturing us efforts. the that they Our Vishay, value -- or that footprint onshoring regionally the tell they near-shoring in as

times. expansion for which especially established and customers, is still already of our capacity to Some allocated lead MOSFETs this have long resistors,

that customers serve demand. Some emerging are to and leaders of new it strategically megatrend-related driving in is reserved,

MOSFETs put in toward geared products. we quarter, industrial for growth our in automotive a and Taiwan work of fabs and capital Opto segments This Germany, ways: located few in and Italy Diodes primarily to

capacity magnetic Republic, is factories by serve by that customers. In New Custom floor the increased overall to we our in. strip part medical and another the invest space in have better power magnetics Dominican This inductors. XX%, of Mexico, and resistors our aerospace and the custom metal increases power X%. we space inductor for portfolio floor defense

At are beyond. in us higher this time, of with are commodity product various opportunity we identifying XX which XXXX the production, growth external actively At for than point, and and we our sources same sizes. of room product helps in more subcontractors engaged developing partnerships create higher-margin

in qualified one these, product and to of start shipping will we We XXXX. of have customers QX

I semiconductor we lines. to also the that product to are identify constrained foundries, additional going most mentioned alleviate

one moving with partner. discussions on front, We are quickly this and in advanced are new

internally We investing are engagement innovation. enhance in engineering customer talent and to also advanced

portfolio and quarter, about silicon our passives I customer-facing the R&D activity. strategy Americas, the Asia. quarter, development discrete talked business product selling. GaN projects in support promote support we engineers our to solution placed and We to with broad expanding During semiconductors carbide Europe and FAEs additional Last and of hired to

semiconductors a components to on applications. XX% reminder, and the power many passives can for XXX% the of Vishay's populate board, circuit As

prefer support designs, Vishay's suppliers fully Vishay We leverage Customer reference who provide with to engineers product broad can are introducing solutions. portfolio.

to Vishay are year. to for available the this We the solutions. quarter these These reference building boards, the test will boards in engineers third be be of able

application lab, to e-mobility technology, to applications to We samples according development respect plan to in of third the the in the schedule. available our XXXX-volt With and silicon an customer technology MOSFET are is to also progressing support customers quarter. have setting We space. carbide up MaxPower, planner

technology planner XXX-volt the on work MOSFET. to continue We

trench completed is forward automotive the with progress review process technology, during development and to partners. applications. quarter, foundry support the of also industrial this made and Our have designing our We and alignment, we XXXX-volt products moving

perspective, and the initiative, instituting last my Vishay change critical. Finally, from is organizational at very cultural

in internally and decision-making pushing foster risk-taking, thinking down taking do. of organization of empowering the everything all to are fostering about mindset collaboration -- first, a customer we and the We externally

goes on designed new before meeting it and the that company ensure March Board To incentive plan of long-term and upcoming and now XX, key the May the profitability our accountability plan reward aligns change, a approved annual employees, performance shareholders targets. we The growth XX. on with at

you both changing the Vishay about tell quickly perceptions and internally are can externally. I

on initiatives We're and fast for good We stage setting our progress deliberately. and the growth. making are moving substantial near-term

I you would to Turning we to XXXX. now. for goals remind like set Slide XX about have the

track we XX are according subcontractors on these by end to the qualified with goals, to original them in still that mentioned moving of are our agreements the earlier achieve a with plans. year. We to we over and ahead I of signed expect and number discussion have

have also complete on We Vishay's build and evaluation next we'll manufacturing to our facility. where

XX We the touches and new strategies are for the end finishing product go-to-market region market. lines putting our by each on of

well. MOSFET Our planner XXXX-volt of silicon development is technology progressing carbide XXX-volt and

on targets and returns At capital. revenue we time, holding Finally, three-year remain invested to early we'll profitability XXXX. committed growth, which with Analyst our and you plan Day share business for in an

we closing, In change. pace the making of by are progress am and the I pleased

day-to-day We put the by customer growth and our for in opportunities in the in created of to mindset practices, first megatrends are our moving to our connectivity, and business mobility sustainability. ambitions the quickly capture

We right have people. the

right We we have and and to do have more products the grow. now passion the

to ready session. the now question-and-answer begin are We

you. Thank

We Instructions] session question-and-answer will Thank now you. be a [Operator conducting

with line from first proceed America. of Ruplu your the Bank with comes of Bhattacharya Our question. question Please

Hi. channel then why yet the inventory of revenue backlog sequential at the strongest channel you're fiscal Thanks quarter questions. Can year, in you're your how And that talked seeing with growth is us taking about quarter this that So beginning X% inventory? X%? you update growth. you a terms given still for and just months? what growth my correction. XQ is just if respect for is to on Why guiding taking of high X.X is typically sequential the the they're last Joel,

question. Okay. for you Ruplu, thank the

QX and about many contract look we in The flat from about with versus see. at automotives. relatively we first schedule have being up continues military see the strength QX X%. to show medical The question that the We automotive QX agreements business We QX. the

the So at segment, demand the the that's positive. inventory still We that's industrial at look the in distributors.

question We of expected. QX, programs product and talk inventory I'll distributors, good. the customer has but I've health stays health the been The inventory met kind about it We has them. weeks so inventory. is did of it at our inventory that is available quite The as POS about the will here. bit the the distributors XX than second inventory of good. MRP the high. was for in not reduce and weeks. The your The at of our of health is to to answer with to sell – somewhat XX combination ship we think a many better are – the distributor is inventory primarily that them

use queue their local because their to think the it, I in will slightly more to have us. be impact overall, they driving down. continues stable they draw quarter the for looking So EMS in at inventory Automotive before sales will EMS second that inventory the also inventory

details can If a ask gross I the the margin follow-up for there. on performance. Thanks Okay.

had in in you XX of XQ, on XX% very sequential million, say XX margins gross So growth million revenues. strong

the drove expectation? outperformance what XX%. versus had think So you your guided I

revenue – So at it second also your you're And $XX the on sorry give because XXX thoughts bps you on above as gross into million guiding was bps sequential then reduction. we your XXX can for us guidance. higher if margins the just look midpoint million quarter, XXX

So XQ. just between XQ the understand gross dynamics trying to XQ margin and

this question. Perhaps could with Lori. is that you I Ruplu, help

subsidy We quarter. next at and during pricing guidance were able be a less there giving we not margin the QX. related XX%, when next energy for to that had – lower So than pressure government costs to will year things the repeat we were expected gross had

that the So of costs. and in expect we now gross coming than are inflationary labor XX% margins increases some margins about half half floor to lower expect for more first favorable in in the still a with But to we due some year. have additional second the

your in I gap thanks and more one for talked sneak in. filling in coverage. detail. technology market Well, about the gaps If initiatives Joel, Okay. can you in

elaborate you to And you would just could market you those If your what like increase of think you technology think to laps Vishay expand coverage? initiatives? mean do want do and today would I where type on on?

bring being us. samples on we're that important gap silicon It's have intend is to we first to that going the to carbide This help topic aggressively high-voltage working third we in The quite now quarter our programs. able engineers of at very technology available is conversation forward. the in as a see customer with

the and able portfolio. be holding the It's engineers will Vishay then of with advantage semiconductor in of early those of an in bring passive to discussions rest the really versus We get products.

space high-voltage a gap wideband top that filling So priority. one. is semiconductor That's

that see our also you further areas do can sensors from or eye to at portfolio. Vishay portfolio on they ask wide keep They consider conversations our come our technologies. protection circuit also like We other other look on customers. and with we out These

are a few. those So

Thanks in for and the the strong market. details all execution tough on congrats a

very you Appreciate much. your Thank questions.

comes Sheerin Please line next with Stifel. with of your the question Matt from Our proceed question.

by you. Thank quick questions a then distribution? have quarter of year-over-year you And quarter-over-quarter on and give metrics. by also couple trends on Yes. the some OEM the segment? I ASP on Could channel and -- us book-to-bill of

shelf the Annual move than ASP ASP. Vishay, the a items having OEMs, do the we have in is see solid. channel contracts. will ASP customer agreements so products diodes see for large capacitors some distribution move up the of automotive might pretty with that that's someone distributor large portion price to moment, of firm generally we or -- do The down couple stable are little come pressure. inventory. with there. quite our to year. see the At These maybe I'll ASP in a it a being making of quite holding likely price and comment see in from on contracts accounts which we a this business trying on the We and a that in that more competitor But they okay. inventory commodity

at power with could pricing stable. the as product the go that Yes? or depending and products pricing be the When the on firm we price some semiconductors will the -- like well see look I the costs increases Overall, constrained products inflationary it. be -- military

pricing MOSFET the up? is How holding

the automotive The see didn't is MOSFET that in quite We We would it. the is pressure continues -- item on The be holding point the been earlier up number one to out some continue It's QX. well. thought holding we at supply. talk pricing to this MOSFETs is LVM, assurance well. constrained up of there see when we about be customers. power to semiconductors price

very Okay. and Joel well the of some just and seemed better The holding be wait And while at the for maybe book-to-bill. a picture semiconductor then, at much broader passive there. if look out you up suppliers than bigger you Vishay question. fundamentals to suppliers

your are past both down there's like a your margin feel you big really in the a Typically prospects. Vishay, And on long-term margins drop about these thoughts expansion, And in your yet. cycles big cycle? we in seen haven't after sounds it so that very and in runs still revenue. way what backlog good And and

others? what one different cycle your may on So, gets and thoughts are than Vishay be through how the this

The automation. are into lines the that's markets be -- used starting into are to the automotive telecom the and changing. moving now that's technology computer. the blend between quite moving together, and industrial to because There technology That's industrial and automobile Okay. defined and of markets

energy that quite we the programs look at electronic at always we the ADAS product we automotive So coming. are There's towards only It's better count look car energy industrial. grade with not content and but positive at Vishay's products. look have, we the automotive features that and many We collection qualified portfolio looking look at segments, industrial distribution.

need suitable to the us to battery-powered Transmission products. to have The to other provide a is from and for being far position electric be grid all rebuilt. able electricity. be lines going We're EV in

a So that there's there in segment. quite promise

that new forward were coming pandemic. medical that bit The activity -- growing. and for to programs because lot a of Medical Vishay, exciting there's talking we're the quite delayed customers of a

defense So happening protect the we're we seeing themselves. that now know then their spending Ukraine are the what's building with in defense, all momentum. own buying countries and many and to world military ways And

four -- medical military. together, industrial, markets you Vishay. you Automotive, it's of So Matt XX% nearly when put and those

bringing solid So segments, but they're quite segments. to contributions also in and telecom they're from those support market computer

where So definitely it's Vishay we're it. quite we be to of enjoy want going to happy with the to development position able technology and more of

Yeah.

that And hold then think in margin, expect implies downtick the second gross only gross That margin modest around said to great. you half. up the you I on XX% Lori for Okay, year.

these on markets won't that And you just comment could that margins So up down so that fairly just you the is be end drivers well, much? behind holding pricing? said like

military as the is see markets growth military medical Vishay's that We is up and good. holding see I've that. QPL having on the We market strongest, well, biggest. is changed the the percentages with

and continue that's to support holding that in to place business. We margin see at it We XX%. good capacity a up put

pretty we're XX% of segments as with we confident So support. because the that

at back to answer. that backlog We book-to-bill adding Matt, -- quarter. look I the every capacity you question we're and didn't your

on in. XXXX our is or They customers, may was system adjusting coming have So down coming distributor out our based EMS customers, they're into times into that book-to-bill backlog maybe lead in deliveries the XXXX. because had

on we're to to our patent what So of order a normalization share see not ability their based just starting more deliver but should adjusting losing sooner. be

Lori, you here. the book-to-bill have

want to You Matt? give and to ahead go that

the and MOSFET X.XX, resistors of is X.XX. capacitors diodes X.XX End book-to-bill for OPTO Inductors quarter, X.XX, X.XX, X.XX, the

so Thanks for your Super Appreciate answers, helpful. and Joel it. Lori. much

Have Matt. good day. Thanks, a

with with TD question. Please Buchalter next your of Our the Cowen. comes from line question Joshua proceed

expect are the in the the about you you. levels quarter? to thanks second healthy apologize you channel you I second think I should but exiting sell-through levels to we about I again. a like the ask second then It the mentioned want I on of and question. half a my year take did for POS follow-up. expected guys, should you taking as as roughly be And expect and a in half how at this, than then the visibility in we normalize hopping to now? for sounds do channel guess stand And levels levels Hey, inventory have in second Thank coming Would into want better seasonal quarter.

accounts to Yeah, the supporting and meeting is say our it's their going inventory heat inventory distributors, improve in position. program with the the We of It's of should speaking to Vishay is inventory in decline. The Generally POS QX. slow and map. is second is not not better Asia than holding a year. many healthy. It's idle on the POS QX what that QX we expected up. in half see The

may I distributors have good we generally, the is inventory, that it shelf say significant, won't like the mix. it's product. but on reduction, a because They It's good. the there the So think be The be healthy. slight product a

The me remember? of second question, your part help

now, it And Visibility roughly seasonal to see it. we guess way right the think as second I half. into it's the about

catching still in features they vehicle Seasonal, coming continues the that production. in expand. but that to automotive saying the cars are up are electronics, And

second model be New coming out in the again. will years half

be Industrial, those being OEMs So, programs we second grid electrical continue we're coming on than about better talking the in forward automotive involved in looks to half large to many and to projects. improvements see first. the bit a

out It's not further quarters. they've canceling So but one, where confident We've backlog. the been been seen couple -- I canceling of have been orders. near-term, people we're over the think below in book-to-bill the the last adjustment backlog

little So, second I better. will to think half seasonal a be

about The given the asked smaller that the shortages as I many Just capacity? undersupply thinking being are still rationalize you follow-up, that my there get which some footprint, no about while facilities, the longer a are in overall also these past appreciate so investing years from capacity is, there. lot expanding makes then your you how lot few color and in to we sites all Thank you're the there that. And expansion a you consolidate clear given you totally curious, opportunities seeing. of the investors you're talked question for sense,

product demand the be Yes. We quite sites coming to We're the always the choosing always looking is point, But is Vishay regionally Consolidation, locations right radar. plus and have important site, it that because located the nothing expansion definitive at look. and the very we now important. on of for at cost this quite this point chance to else, strong because backlog most to across the competitive the is look lines, demand pretty move from at to and is a lines. the continue broad a though. down at product the factory We'll the at start it months take good all of slow is X.X across no product of somewhere quite and demand it

you. Thank Understood.

Thank you, Josh.

you. Thank

We further closing would I have Mr. for over now back Smejkal, the turn questions you this time. no floor comments. at to to like

the second and towards I to sharing our Okay. Thank of you look us quarter day. very much. thank you, call. earnings progress goals XXXX good August. in Have our everyone, Thank much. Again, you joining results a for reaching very for on with quarter our our first you forward