Vishay Intertechnology (VSH) 6 Nov 242024 Q3 Earnings call transcript

Good day and thank you for standing by. Welcome to the Vishay Intertechnology Q3 2024 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Peter Henrici. Please go ahead.

Felicia. you, Thank welcome Conference and Intertechnology's Quarter Third Good to Earnings Call. XXXX morning, Vishay joined Smejkal, Chief I Chief by today am Joel and Dave Executive our by McConnell, Officer. our Financial Officer; and President reported we third for This morning, results quarter. our available can A Relations the our be ir.vishay.com. This is accessed section copy over live at Investor being website through in broadcast release our the of earnings call our is of web website. and

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

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

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

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

included non-GAAP have find release information non-GAAP use presentation reconciliation considered the of We we results. in provide in because conjunction useful investors by which non-GAAP and businesses and GAAP they measures. a about believe our performance operating on be to press ir.vishay.com, as well comparing the GAAP measures our when believe posted you should as with useful we GAAP in will our full We

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

revenue our then questions. on any third financial by XXXX quarter. through Thank and initiatives X-year our the results conference call. happy the report give and I'll supporting to we'll I'll guidance of Dave with of take Thank channel of a fourth review remarks strategic the you your region. you a joining be XXXX progress for answer quarter a quarter for third will Good quarter that, plan, start After you, for the and Peter. you market, Then morning, our our end everyone. my third review

while fairly constant, continue third their pace For the to remains customers quarter order of control rates period prolonged improve, the conditions in of Americas. Despite this Automotive that destocking was adjust the and under with and quarter slow. sluggish the $XXX.X appear industrial revenue to million and increasing demand the to Backlogs related out a continue inventory second smart of for be quarter, high-voltage servers. to reflecting worsen. Europe by to demand third reported we in AI customers applications infrastructure, consumption forecast in DC bookings Europe, military has flat grid held revenue for are saw pushed macroeconomic year, as

driving the next long-term conserving the to demand sustainability. In becoming the electronics in because we enhancing portfolio a organization product our to which place expand on participate from to to a on to approach. Under so in X-year capitalize under putting capital. urgency, carbide develop Vishay forward are preparing prepare with silicon customers profitability we initiatives new more industry on our down cycle, capacity business-minded customer cost. focused ensure was more up fully the and customer growth up cash Under putting our making scale foundation of cycle, list and the we customer want taking X.X, we unable to fresh -- our industry the manage plan and scale implementing flow, shelved and While we became ready are for focus and confidence the back remains to as restore company customers, necessary returns a are demand support new previous our to to are with to are relationships, cycles, and pressing sense the down returns, strategic the Vishay, working more of a on X.X, demand on plans and are intelligently of customers win strategy adjustments the we first, Vishay next in e-mobility

management, and autonomous closer second EV Americas Europe. onboard all of revenue strong although at applications battery to revenue quarter, third a boosting the related for on a agreements driver for Government second X.X% the and and for X. schedule pull quarter EVs Europe review in and design around and with remains leveraging are the demand and policy inverters Let's to assist focused in vehicles sensors. Design below demand revenue in and starting market however, Slide resulting X Tier their increased our activity versus look by in many take and OEM demand Automotive quarter, weakened hybrids, end the which Discussions Americas products, and customers chargers. advancing our rain is in drove for AI traction starts. Opto on China, particularly ADAS new chipsets continue

decreased million weak from legacy second the quarter, million Newport ongoing adjust $XX.X of accounted demand $X.X revenue the which As continue for that. of customers, in more Distributors so in products for markets, to response from industrial industrial to end inventory Europe.

is Europe, In future. Also the the for normal saw holidays seasonal in within Europe, consumer the EVs for government foreseeable and heat for quarter. solar we addition, incentives uncertain and pumps funding in

energy smart shifted activity and As industrial infrastructure, storage. a energy has result, generation automation, grid to with along renewable design

As are driver see we growth the large Vishay. as for grid we smart receiving, infrastructure evident key orders from a

Defense, a Aerospace than high which caused is products orders for XXXX, orders larger as Americas quarter. Demand revenue opportunities product programs are XX.X% for soldier aerospace, year's delay magnetics. and film X.X% due the from remains from radar very in flat than revenue primarily specialty X.X%, customers pushed of upside such munition -- in replenishment, for of activity the in that technical caused entire for film ongoing for a issues In products, are driving Vishay. strong second reliability to The smart for in and high-power Medical is Birkelbach, to and higher unmanned quarter For quarter ensure metallized Europe, chain capacitors electronic new this versus a our this but to high-voltage, morning design business acquiring that we grid to last this patient medical our Demand We're of smart we most and In be declined supply acquiring there equipment custom Americas. the inductor reason, the a out. Medical significant third Americas projects. -- book-to-bill was films higher portfolio. X Vishay of announced important the was used over supplier infrastructure one the and manufacturer in commercial running OEMs systems, gear supporting presents metallized third to materials sell systems. supply flight with space remote monitoring

to and other year. There Revenue devices. was We work on also quarter were and up to continue a for spot out but surge power quarter, down quarter-over-quarter, third what consumer segments, but AI We're increasing lot stands seeing servers for computing takes puts AI orders design telecom, of designs AI conversion, server power They're category. a the including server these and activity to CMs for stock for of last storage Under is who XX% X.X% X.X, this in the part inventory. power implantable related orders management quick demand from delivery. in the versus laptops Asia. and chipset segment the numbers not support power, in the quarters. in are the to notebooks, networks and ambition servers finding Vishay AI quickly Other dominate coming distributor continue is to our in directly suppliers fulfill from

on the are place We components greater chip the it of put emerging the the of board gain key in bill makers design designing in continue to percentage AI a materials more Vishay of market. to to and portfolio as

Slide Let's go X. to

In second revenue quarter. quarter-over-quarter essentially X, see that and Distribution terms with year-over-year, the the in as on shown of you Europe. revenue sales, decreased channel and flat X.X% reflecting OEM EMS drag was Slide X.X%

weighed Worldwide patterns, to While POS was from by to Europe, decreased about up Asia X.X%, by customers seasonally for brakes. I demand POS in are developments clouding weeks. with Americas lower end inched returning This POS in flat. numbers uncertainties our week related again, evident they these worldwide the market that inventory and of Distribution is the tapping becomes Inventory demand. down order told impacted. XX new essentially trends quarter. customers X somewhat to in and me met are future many geopolitical Europe customers in the September, normal

Let's go to Slide X.

to the volume, on AI. was Americas reflecting Turning X.X%, been the I've Slide in macroeconomic weakening declined pickup along in a with X; increased Europe the medical from you X.X% that and Asia see revenue in on automotive environment which Revenue lower while revenue in lift seasonality, can down volume, mentioning. slightly

path Vishay in increasing profitability improve to employees empowered our over to it's the being turning decision-making also the like from Before contributions business-minded everything up and operational to of X.X. bubbling And thinking acknowledge made to a in efforts ideas I'd willingness to employees Dave, down new by the take pushed and Vishay as focus the see customer on the financial as our for it's call These how embracing calculated Dave together are targets. I'll very risk keep achieving us to past. taking more and pass changes than our forward results review over financial the the do. It's greater their commitment we into see organization great now to the call to approach QX. so for place to a efficiencies collaboration, organization. our and much appreciate great to I is which XXXX

you, Good Thank morning, Joel. everyone.

with results from quarter the third the of review Slide highlights our start Let's X.

Third X.XX $X of were business months inductors in a our legacy X.XX reduction $X increase million, decrease in the a $X declines months acquisition X.X quarter, to ASPs. the including partially X Book-to-bill third business in at to a volume. By versus decreased to million mainly decrease year, were Compared quarter a of reduction decrease in were million X.XX, X.X% last Opto and million the primarily at our revenues in Newport for in for for X.X. a and quarter by the decrease attributed a down million end Newport in segment, net product passives in to backlog compared MOSFETs, segment. and reportable reduction attributable of and to the the comprised reflecting XX.X%, of for offset X.X% million months decrease and $X a second our guidance. from was Newport within X.X X.X $X passives. Backlog volume category, volume, These Revenues ASPs million range X.X% decreased for revenues XX% was X.X an compared to quarter capacitors. $XXX.X $XX revenues reflecting to semis of X.X% months was By and QX. semis decreased reflecting

second primarily lower, presenting the XXX basis $XXX our line online. volume, guidance approximately income our next points. a prices to million, margin lower basis quarter $XX margin gross gross partially the R&D from million, Gross compared $XXX.X selling under Moving higher for million, additional due in and negative second and a and was expenses equipment XX.X% expense and guidance the up to million Newport to statement highlights. quarter, Compared by of stock the million compensation expenses was increased in Depreciation higher of slightly depreciation $XX quarter, XXX the reflects expense, in included reflecting which points with quarter, quarter to offset that $XXX.X accruals. resulting average from come lower the slide, for was bonus lower profit was for two were expense. SG&A impact the has

strategy. Inclusive $XX.X optimize growth Adjusted we of manufacturing streamline the GAAP quarter of charges business operating quarter, operating in restructuring restructuring company's as quarter X.X% was compared footprint XXXX. million, charge, we execute XX.X% X.X% in to recorded a and in decision-making quarter margin third to of the increase the the for margin in from quarter second that designed an was margin of Vishay in our to and decreased and X.X in minus $XX.X for margin decrease XX.X% reflecting guidance. second line the was Adjusted the $XX.X for gross was million in an EBITDA SG&A of for X.X%. X%, the the EBITDA our margin million included with quarter. down EBITDA the X.X%, EBITDA the expenses During

effective loss for effective for the rate Due XX%. the quarter, XX%. the GAAP to tax was was quarter the approximately GAAP rate net period for the Our year-to-date approximately tax

for quarter quarter the was per quarter. effective XXX Our compared normalized the ratios per illustrating for and the was the for presentation $X.XX per of for of period segment, our $X.XX loss was points. all the $X.XX $X.XX and share the are rate share which GAAP approximately each quarter the quarter results per table second yields X; business per for the third to reportable in earnings $X.XX an effective share the tax $X.XX of compared Slide 'XX. Proceeding approximately revenue, to share Adjusted for for margin approximately share margin weighing business rate segments. year-to-date tax the 'XX. XX%, of share per third EPS of second for segment's and of third in substantially to book-to-bill a gross gross reference, on MOSFETs includes that Of ease Newport quarter, note, the reported for XX% basis

million the and DPO quarter third from of was can operating cash was X from quarter Slide for million Total in a quarter basis, in compared a same projects, up up a of for our a trailing was cash third capacity consisting intensity second On flow for quarterly QX. XXX cash quarter average XX; share. repurchases. metrics; compared conversion conversion XX cycle quarter, in Continuing expansion the from million, designated during DSO projects. $XX resulting the million, $XX million. including the tax quarter. inventory days price negative sizable flow our Slide at shares for days, returns the was to our free $XX.XX the was an $XXX $XX Turning we We year-to-date million million On was was to was our million which capital million the for was days. Inventory days to cycle per up X.X% third in payments. million $X expansion to and to last the and a days. share for XX to slightly XX up $XX.X cash Total million, basis, negative XX.X% negative $XX.X in you investments free year. Due X.X slightly of days to days, included quarter our for XX-month XXX dividend for Stockholder repurchased -- XX $XX outstanding period CapEx $XX cash capacity $XX.X see XXX for days, generated an the amounted

short-term our $XXX strategic For $XX approximately to At XXXX, on to as million we fund have quarter, and million quarter to investments end U.S. Cash we cash $XXX still expect in million stockholders. of deploy hand of to return end at at continue the least we to plans. the cash decreased the

we our investments. and U.S.-based other required cash noted, are the cash previously repurchases using expansion fund and interest and using our As liquidity and to our to are share principal hand on in payments fund Newport U.S., dividends, strategic we

quarter expected expect revolver on revolver to and our to based The reminder, repatriations in a on in Germany. At we in withholding As $XX to three, around million of and to fill repatriate accumulated cash cash we negative operations future To $XXX estimated short-term we our outside. of of free world of provides taxes, under liquidity stockholder our countries, accrued from for for we The certain gap. and and remaining are return planned Israel held have approximately end pay Germany. year earnings Israel U.S. policy, million these foreign be investments liability us with from an tax payments based cash the the the and adequate also and subsidiaries, subsidiaries the in significantly expected our must draw investments cash most the timing fund our on have

regulations evaluating in and strategic plan investments The rates held high countries opportunities of liquidity cash. local significant deploy short-term cash cash are Germany. our million located with for in projects expansion some Our expansion of $XXX in are requires in repatriating that restrictive for Germany. subsidiaries projects remaining for this tax We're and to

have those We deemed earnings them to because reinvested. repatriate have not taxes indefinitely we accrued

Okay.

of to We of expense. realize of manufacturing by cost in announced and in by will on $XX.X When reduce end fully other the third production our related SG&A implemented during Slide $XX result we which including expenses our the expect XX; operations savings million, $XX the recorded reduction SG&A to three workforce, various annual transfers. cash a X% XXXX, costs. programs to will million facilities, X% restructuring workforce Moving manufacturing million in quarter the of closure quarter the the programs are of in and severance expected changes manufacturing restructuring we

of to realize million payments to be restructuring balance XXXX. end the by with immediate fourth annualized cost program $X to related the Cash due the the XXXX $XX expect of $X million, quarter. estimated million in including We savings approximately in are

points. the revenues XX XX.X%, our minus million, XXXX, of basis range plus $XX Slide XX to is Turning are in million. for be guidance; to quarter the fourth to be Gross $XXX of for or or margin minus expected plus expected

Newport plus approximately on year is million approximately cost focus. the fourth is $XXX related full year. or SG&A an our million our for margin million points the approximately or Included $XX the expected the of minus quarter full expenses offset addition restructuring expected points be quarter in in four. Depreciation expense $X million, basis to full XXX which for the the million to have continued for for to the expected guidance basis year. is to programs containment is favorable and be of $XXX gross are SG&A and million benefit quarter XXX $XXX Newport, $XX by to drag

XXXX, expect to of the normalized effective back we turn tax Joel. call XX%. I'll a For rate now approximately

X-year even Please All are right. Dave. to and pressing is to cycle, XXXX extended strategic we CapEx financial earlier with XXXX. down I in goals, industry including XX. forward $X.X billion Thank mentioned contending at you, though remain Vishay, committed that XXXX an with the Slide plan our our spending turn between and ambitious

to invest million $XXX For between and million $XXX the year still we XXXX, plan CapEx. in

greater returns product we levers our this revenue our X portfolio. and for customers, through pulling our markets growth our of capacity scale the to growth expansion drive and displayed slide, As are a to commitments meet reminder, accelerate and on

up and the next Difficulty] are sustainability. cycle [Technical for We megatrends ready

progress XX on levers. turn for Let's a these to Slide

in primarily complete are silicon capacity, internally with of families semiconductor automotive-grade of and in now of innovation. Starting of MOSFETs in XXXX by and qualify XXXX. Korea, in XXXX available MOSFETs. We Newport, keyfoundry, diodes of first three remain annualized other are expanding partner the we production engineering structures of and four first technologies quarter one expansion on transfers commercial in product this our reminder, commercial to 'XX, are capacity the four are and schedule we another MOSFET the on and externally automotive quarter in are industrial to three Through on focusing capacity At have Sk automotive Taipei, XXXX. shipping on currently component the second of have for on now the track at a will to some both XXXX. we quarter to the XXXX, have to end to As and quarter early and begin available in the components compared we target partnership, QX In volumes the of which the three diodes. MOSFETs in families qualified X first product of XX% complete of projects; We of be we samples commercial XXXX. to are by and able increase Taiwan, internally plan qualifications

annualized to type. to depending by to product We on capacity XX%, increase X.X% XX% lines capacity expect of in by constrained XXXX and expand the

for end in La XXXX. the approximately XX% automotive to expect continue we Now Laguna, increase by components; of complete for the remain on to qualifications annualized passive track and at Mexico, year inductors to capacity before the

start in Mexico resistors limiting products government approval first product shipping our temperature quarter. to applications. At and Ametherm support line current During commercially products. Juarez, this products automotive we and we're sensor Ametherm that our production line in sense current sensing The includes inrush qualified shipments some facility of received and quarter, of the expect

profitability. embrace to to subcontractors going well another third within approach capacity products to nearly for serve to year-to-date three increase subcontractors business add numbers business-minded Vishay to to to organization part use customer and on commodity to total best the achieving added our additions. In one and using lower-margin quarter, one for goals XXX our the is initiative part the meeting subcontractor we added our XXXX, drive We're targets. demand. leaders for we products diodes, bringing year-to-date as for X.X portfolio of the capacity financial number Our to extremely our the during our path one set inductors, portfolio, X,XXX are external XXXX and of resistors the We

generating passives, of goal our revenue more outsourced we X% from X.X%. are than For at

of semiconductor our production. have goal outsourced at We of met utilizing fabs wafer XX%

than a more utilizing set basis, goal for of also And semiconductor that a we our of on year-to-date we met goal. assembly outside production. Finally, have XX%

our As X X,XXX-volt release technology, for more XXXX quarter. two plans innovation advancing plan for Trench quarter. engineering products the and released made quarter products planar commercialize the test. technology planar to during planar and strategy our the in the and We in commercialize samples is X,XXX-volt in now third substantial to well. We progress carbide at our silicon fourth have the X,XXX-volt with the XXX-volt plans customers our We first to

Our XXXX, the MOSFET the X,XXX-volt onboard plan doors planar of projects components and the which quarter is of release OEMs. automotive silicon Trench open support the XXXX first second MOSFET MOSFET X,XXX-volt carbide us with the inverter XXX-volt to and in the the in XXXX. These traction quarter for of MOSFET third quarter charging, in planar

carbide We continue about hold OEM maps. with automotive technical silicon their road meetings to customers

on plan in facility We to at Newport production receive carbide XXXX. meet schedule have also our to early equipment silicon and started our are

will the on XX% Vishay the board. on content this Electronica X of release we at which year, Finally, greater reference showcase designs, components than

a to AC stage power capacitors. our automotive, smart total Telecom our is converter; customers, polymer X.X converter that DC ICs, a which unit to design mount have customer's on Vishay we'll telecom. This XX-volt, a a onboard reference kilovolt and XX-volt solar, high-voltage for X,XXX-volt segments DC power shunt DC inverter supercapacitors sensor, for is are In can how of also And DC our support uses incorporates design DC market battery and silicon a carbide DC is X.X DC board Gen bidirectional X,XXX-volt silicon designs designs inductors examples photodiodes. featuring carbide power with XXX-volt a an to application Vishay intelligent transformer, power using for and distribution reference Industrial kilowatt auxiliary energy a For which an for These and solution and slide tantalum to there X XX-volt XX-volt converter, XXX-volt converter Vishay finally, as a XX-kilowatt MOSFETs, silicon our a using other multiphase like a an selling. it. AI, vertical harvester, charger,

are We making and the cycle towards on XXXX behind initiatives, to enabling dozens we're these outperform Vishay historical organization progress but the specific initiatives scenes other strategic the firm shape organization financial XXXX to plan results execute of footing in executing supporting to achieve and the X.X, putting our on also up our next industry targets. us

our are our have bill past broadening position to industrial landed to added the not our in has SKUs automotive to we acquisitions have share through We supported We've portfolio distributors. over our sensing incremental by Vishay like this serve for program did creating and our temperature business of Since two in needs we an products additional of began, years. With new to XX,XXX markets we inrush stepped opportunities the materials, and current increase and meet their nearly and up to increased distributors, engagement to share our markets. business. capacity of turns portfolio added win participate Ametherm, previously customer that their

through continue to with and We resellers. subcontractors add our products partnerships

Medical for markets, are with supplier Vishay Vishay many be a on customers broadening example, only through engagement. positioning are In one product. portfolio. a focus broader product to portfolio our for We're our leveraging customer We using intense even

that have with is discovering customers maps. customer supply and strategic the engage bill that share our increasing we're product may alignment their ensuring not resources and leader engineering demands. products of increasing us we're a of their materials, that more may supplier, increase future now Vishay technology field our portfolio. We're as opportunities road even our of meet and for creating to -- our viewed to design medical We're Our opportunities not about which customers ready

Vishay positioning next-generation participate to we're along the with market, drivers. even emerging result, demand a greater As in AI other

about strategic our talent toward the positions driving goals. and intensifying engagement, customer-facing are ensure restaffing direction one are same of and we also experienced financial third in we adding customer the organization While our to is

footprint which to is to China. Cementing Germany In April optimizing these of Day. and facilities, Vishay Dave terms mentioned. initiatives at through timeline our we're is is efficiency, progressing of in operational we with One States, three in one our decision the X.X enhancing in last according United manufacturing one Investor the the outlined manufacturing the is execution close

still partners our that plan, needs and in aligns stakeholders organization. already to them innings with feedback time The path to recognize customers, our reliable early conviction a we're meet the a vastly X.X hear of Although assure implementing strategic on the supplier, customers employees becoming we our different with to working is are right our over their we profile. and enhance financial from

our plan. Felicia, invested XXXX quarter on goals our you our sharing question. February are strategic for let's faster forward look to confident capital. are moving progress forward our to on to We first and as and continue we our fourth improve ability with we reviewing determination, take in with return drive call revenue growth, profitability next XXXX execute I expand the and

of Bhattacharya comes the [Operator Instructions] The Bank Ruplu line first from of America. question of

you asking by What you to expanding how the see at And products the of when growing your do wanted do of to and Vishay products are do of expect inventory innings when in, you, I to at outreach distribution? think line product inventory start terms in -- you start distribution Joel, again? distribution pulling card distribution? and we Vishay

passives. for for thanks position nearing distribution Ruplu, at normalized a the The question. is inventory Hi

of the weeks. XX at is The that inventory, running but distribution. close have It's about at of semiconductors of the is more not to XX-week inventory, in who XX, we're going stuff part catalog the the The a low XX longer. distributors' little Americas in It's channel weeks. is Vishay. competitors shelves. take our some we're we're overall Asia think The on range, time. The I necessarily Europe It's passives. very the over-inventory of over-inventory

happening that's is but see is so it's are orders inventory. And visibility seeing inventory our XX% the finding I numbers. the customer of talked SKUs is that to we We're of that not stock larger, the comment we're So we're quick dollar I and positioning delivery. environment at Asia for CM covering An the It's low, in about. weeks. those the distributor. this quite now, the XX looks because orders mentioned where broadening additional portfolio Ruplu, in product in part interesting at more we're XX%

So [ ] part numbers seeing play. different into we're come

overall, QX. semiconductors and of normalization in think into quarter in is sum will up, moments it we're in of I So be to passives now the kind this

Okay.

me Let ask another you question.

you which grow As you we should look of next do product And revenues the product the grow regional into the about quarters? fastest, Meaning growth think Vishay? for of few lines which think mix see slower? over how XXXX, what we do lines areas

I've We now two calls about orders the past we're and shared the smart for in talked programs China. smart grid grid we've on the infrastructure additional to received call seeing support previously large accelerating. about mentioned Arabia. We've Saudi Europe, that last programs quarterly in

also these So grid that infrastructure expanding. are at the line. There's a applications. the product large we're resistors capacitor This mention smart to that is involved other moving is [indiscernible] in pace, now faster and

opportunities we're So is good. in grid the seeing industrial That's AI, AI. these positive.

can following up. for tantalum. current are It that MOSFETs, It that for We sense AI companies. design pick covers be seeing resistors, have power on can that the servers. from reference be Asia. chipsets We're polymer covers We're AI large position microprocessor also coming that design inductors, that automotive. And into

designed also in, our few Vishay one of that there's So products ICs. quite are a

competitors aerospace, to we the design, there's that. multiple we're our are gain but share. military Military, on following stays sure, fighting positive. for defense, book-to-bill the So Naturally,

continue to orders see for replenishment. We

look to satellites those new in for space when negotiating with signs are The earth military like show Space, now the we We the products us. low continues contract. negotiation XXXX positive be exploration, programs. That XXXX. quantities environments. in in orbit also automotive, for positive at high-technology we're LOI over see see season Automotive, XXXX. space XXXX, We for for increasing orders programs we will

Ruplu, the into many divisions. are So positive, that's going Those XXXX. and Vishay a positives, covers that of the

Okay.

Okay, great.

can of see can adding the trending? we have product you Dave looking on do products you think beyond? Do the think well. do Let for year categories? focus that strategic the commodity if about into environment? to on and XX, Can year mix you of commodity shifts Slide time products lower prices? and versus raise and quick then or decline have how as mix environment? And me based talk So question, the one the mix the just the pricing as over And products mix one you at of different ask prices current Do you you opportunity go where next your you pricing talk about custom mix products, see I'll that changing any you

current a on is there us two. what to environment or in be where aggressive There's last about there's little we with The the spoke spot volume more it requires pricing consistent call higher where opportunities out pricing.

negotiation our take in that We're is we seen share. the negotiations, past from years. Pricing large to in So those quarter significantly accounts. season what win we've now opportunities that for in consistent strategic prior with different

there. dramatic nothing higher exchange as for ASP As so productivity in volume down for far

Regarding the commodity our product we're these expanding by portfolio. mix, subcontractors, adding

important So that see I of going in are all in well It's growth we with a the be viewed clear to the that as commodities products. specialty as products. as full-service we're want supplier to

say see wouldn't I to go commodities you're down. So going

both of to going revenue increase I overall think see increases the as Vishay. in these you're

Okay.

use can I priorities cash. Dave, question you ask Okay. on one for of

would acquisitions a dividend the of cash. best if increase give As months, XX buybacks how prioritize versus structure? can So use capital with the your us versus you think maybe more anything just on you doing next you versus over thoughts the

I expecting you, was Ruplu. from Sure. that question

there's last this we've continue right? Newport, $XXX to [indiscernible] to easily year. reach so the return We acquisitions yeah, million that shareholders, target So committed to our small year several and we're -- in done and

plan the I And us Newport, from think at need that, we're important I to as mostly the the capital. is strategic moment making speech, for focus objectives we funded meet and the we to plan. strategic as set is going for in said, U.S. the So my The sure the do Newport

that. do to So we'll borrowing be

we plan. to jeopardize So don't plan, the think want X-year the strategic I

So to stick the focus, that we're okay? going main being

I further would questions now over remarks. like closing am Okay, it it at time. Instructions] turn showing to management [Operator this like looks no for back I to

call. attending QX again you right. much. very Thank All Felicia, our earnings thank for you

for we are initiatives are And about that Vishay doing growth. seen in a very the course what We in as are set new Vishay put excited to on forward. today, we accomplishing statements we you've the

we'll in So call earnings thank see next you you again, and the months. on three