Teledyne Technologies (TDY) 26 Oct 222022 Q3 Earnings call transcript

Ladies and gentlemen, thank you for standing by. Welcome to the Teledyne Technologies Third Quarter Earnings Conference call. [Operator Instructions] And as a reminder, this call is being recorded. I’d now like to turn the call over to our host, Mr. Jason VanWees. ahead. go Please

earnings This and everyone. third VanWees, Chairman released Vice XXXX market before Good opened. like is to Teledyne our We call. I’d release Teledyne’s this welcome of morning earnings the morning, conference Jason earlier everyone quarter to

are remarks President also and Officer After me of Robert President Cibik; Robert and Vice Roks, we for and Secretary, Mehrabian; Executive will Teledyne. Compliance today your Joining CFO, Counsel, Sue Chief CEO, and Sue, questions. Senior Edwin VP and by Main; Teledyne’s Chairman, SVP, General ask Melanie

attorneys results Of all reminded course and though, morning assumptions, before we made noted statements caveats to get are that release webcast started, materially. in webcast you and course, periodic to earnings be dial-in various have order risks call our tell SEC this In avoid subject disclosures, via me of forward-looking being available as is approximately potential the month. simultaneously filings. both and And may replay differ selective this X will for a actual and to

Here is Robert.

the of chain earnings quarter challenging Good achieved sales, well Thank our and for cash as joining margin quarter pleased free I long third performance am thank flow. constraints very Teledyne’s and history you inflation, Jason. morning with Despite as supply and markets. our you, strong record call. dollar, this navigating we earnings, operating

$XX negatively million, headwind, currency would which third X% impacted in core been growth quarter by local or foreign Excluding X.X%. growth have sales approximately currency

portfolio. and of which orders Record external all-time backlog remained our our given earnings $X.XX, in for commercial strong tax the rate that headwind. free company was reported and addition, of was business our of to Non-GAAP healthy were increased several approximately strong, flow in despite shy years. cash earnings $X.X testament sales very and of our book-to-bill short-cycle record Overall, quality reasonably in the a a quarter balanced while year-over-year record. strength the effective our quarter also longer was FX largest $XXX demand XXX% is high marine improved And end businesses and X.XXx in quarter remained segments all record. third of aviation In cycle income. our billion businesses of also and consecutive and Total was second government, third particularly quarter a adjusted orders net was million just

is morning. earlier the Our and announce ETM we announce pleased we of pending acquisition growing are to this – were pleased acquisition pipeline to

in technology third XXXX and government’s our earnings given Turning towards continuing the derisking rate to our full the to cautious outlook, bit increase quarter, forecast. a project third smaller QX able year now resolution are took we we And and this semiconductor the as our exchange our had revenue. current some controls, were quarter, heavily sales our full export we full evolving time the also refocus revenue, performance operating we a year well our margins. On strong with to of billion. while FLIR help some weighed as at by as prior U.S. year roughly Teledyne $X.XX cost improve eliminating result, to products money-losing opportunity and the In the outlook

as availability to commercial instruments sales of analyzers. quarter, gas X.X% new sales protocol underwater of modest continue segments. analyzers, analyzers basis – performance year-over-year XX to chain Sales such of recent currency XXX Peripheral Express was sales nearly adjusted seen of and modest for segment I sales and to major include in to our with protocol year. segment, well comment PCI as translation four or further now year Imaging analyzers and process this systems, last headwind industry and components. growth X.X% and increased GAAP last third growth all sales on standards increasing as marine unique X.X% with shipments, improvement components with on and Instrumentation we Sales profit operating our commercial our of Starting of and X.X% increased interface, Sales basis. will strongest least X%. In a a combine both categories. strong Instrumentation our multimedia Digital Sales together. product defense points product, the for quarter points and operating limit as vehicles year. increased XX.X% high-definition XX.X%, in Overall, industrial XXX improvement and HDMI, and scientific regard strong versus from as both amortization, and printed the our of third despite vision which basis quarter segment, air Component drug Sales asset oscilloscopes, margin with remains well constraints compared across at Bus certain applications. with supply crossing monitoring third while imaging infrared well quarter due digital have low-dose very weeks oceanography Universal greater systems basis in digitizers non-GAAP boards overall protocol measurement X.X% oscilloscopes high-resolution electronic Finally, the USB, in of also intangible test discovery as GAAP but XX.X%, environmental Interconnect increased remained and geographies increased or segment of which laboratory margin as detectors. record and increased. sensors increased numerous well quarter cameras for Express, for as autonomous and Serial circuit segment instrumentation second primarily of Sales XX.X% with as margin oscilloscopes was the a of point X-ray of was electronic instruments

Aerospace increased in by aerospace Defense asset margins products. to In increased segment X.X% And sales segment, quarter slightly. revenue basis quarter and greater points and increase increased finally, commercial with increased XXX driven in last segment, amortization, profit increased profit XX.X%, the Systems Engineered also intangible operating XX.X%. the operating of GAAP Excluding third than primarily our margin sales a XX.X% Electronics third X.X%, year.

call Before couple turning I a wanted the to remarks. to Sue, concluding make over of

inflation, as companies, the rapidly now integration that the we completed endured time, most is last Teledyne dollar. and months, constraints same we At same U.S. the the FLIR, Over record supply strong of deleveraged. XX acquisition our then we chain challenges and largest have

While Sue. organic the turn are finally, And and challenging, we on complementary and operations remains now operating in environment we margins our back integrating increase glad being simplifying be businesses what and investing acquiring drive businesses. the to over to to costs vigilant best, do call doing to I’ll to our growth,

was everyone. I million fourth will XXXX. discuss and In cash quarter from third the full quarter year by then discuss million Robert good first $XXX.X XXXX covered of the quarter, Thank morning some of and flow for the with and operating our same for you, I will Robert flow additional $XXX.X compared not outlook. period cash activities financials

million third XXXX. expenditures FLIR XXXX the million in payments Capital with to million XXXX $XX.X Depreciation receivable of expenditures the quarter compared in amortization with quarter XXXX were and third the quarter quarter with was related cash of trade third less million quarter third reflected compared was in XXXX with of from of of Free compared the $XXX.X in for $XXX.X collections cash expense cash cash third XXXX after flow compared The $XX.X $X.X $XX.X that included is $XX.X million capital of activities stronger XXXX. – operating the transaction. million. which million

third for less inventory step-up cash amount the quarter billion In of That debt $XX.X recorded in debt. XXXX. billion was addition, approximately of the quarter $X.XX of quarter with non-cash in expense with approximately million third compensation XXXX. option of in third We no was compared $X.X the is ended with expense $X.X net million XXXX XXXX of Stock the million. comparable $XXX.X of million $X.X quarter

with on believes range to to the Management non-GAAP be And to estimated $X.XX will fourth full currently outlook. XX.X%. per the non-GAAP basis, discrete XXXX, of our that our the to to The of quarter year earnings will per back pass per in I range be excluding items and share earnings to is now in $XX.XX $XX.XX. outlook GAAP the $X.XX full a $X.XX. $X.XX earnings $XX.XX to in XXXX expected Robert. $XX.XX, GAAP of for rate Turning XXXX tax the year share call is share

We very you to like Session proceed Operator, questions Thank the are and with much, would now if ready answers. take ahead. Question-and-Answer your questions. to Sue. you go Please

will Instructions] first Greg [Operator Jefferies. ahead. you. go We with go to Thank Please Konrad

morning. Good

Good morning, Greg.

price and think mix maybe the Maybe and pickup or Can just around you to nice the maybe start, Digital Imaging recovery had for a HX. how from of recovery dynamics margin expectations year? talk there the about about margin kind you

of all that at have if the Well, Imaging. then expectations I Digital the of net sales, let for start me our but you X.X% Actually, can businesses and if year we year, look improvement see pricing of about answer across the rest. includes with

price the the in also we we the hand, we against increases products about have in that and that, been X.X%. price that buy other products buy. increases On we have The inflation, have Greg,

We also of salary have X%. increases about

pay that flipside kind had us, not extra that that net we that to price. others little could scarce that the have offset headwind price FPGAs to our for I increases So The from have and pricing like increases a inflation. our have – into build have is we of of is products complex that we

million. about X%, have I to headwind a say So that there, we had going $XX am about

a relatively well. They margins, tight their up to have So been fundamentally, Digital done year Imaging it’s improved but has now.

right on these you’re do then it kind business. think can outlook that broadly? FLIR, the comment a like demand maybe broader you defense the some timing just some think of opportunities of and outstrips about the I the at now. market in getting supply of how some of to commentary And business mean broader quite seems mean I seems there? I contracts, mean new more you Defense few

in I has finding Defense we’re book-to-bill think improved our that our significantly. – general, businesses, the in is what

both that that Systems and for which other Engineered strong. government closer quarter, down slightly, going are us, electronic third that The being the to weapons including improved finding what in the is for to components X.Xx Javelin are Xx, but coming important we’re the X.XXx. in demand our is and parts for an to those Now part to but it’s Defense back systems, has actually, in and Electronics are and book-to-bill, – businesses depleted, close our Aerospace FLIR, were is

being of XX orders, are new orders of programs We X a have developed years. that and our layer, goes missile tracking systems like also orders – in good we of that products. field lot for about We’ve had tracking across over really wide which basically. million a is will have good And

in in on. gone So – Defense some strength right. seen moderation our our time and commercial we’ve businesses has general, as had in you’re We’ve businesses

one, last the out question. of a just X% called clarification then headwind you And kind FX. from mean I

translation headwind? any changes with are you’re a maybe only Just competing want that Or you local to just when clarify, currency is a to competition seeing competitor?

No. to revenue It’s a about year. for and FX. the QX, at the taking of went from hit a X% in QX, It really our translation million in to X% we’re a only. in It’s QX, Greg, $XXX estimating headwind we’re X% total, about started that full year X%, for

if didn’t million have we only, revenues. this another translation So would – $XXX in have we revenues

you. Thank

Greg. you, Thank

Please And can to Joe Cowen. go ahead. next, we go Giordano with

guys. Hey, morning. Good

morning, Good Joe.

cut, Last modest quarter, surprise. people I think, by took some very

Now of here. raise a bit a

We’re of in end the day, zone the at despite of that. of kind same the all

it like like key last to quarter I of Because kind thinking to materialize of to at next maybe same some not end of that guess, the are – changes? same place, of you of the about was movement the day. the the get So lot what Did extent? a big were kind kind risks

how And when stick. sure price margins weren’t the to Yes. quarter, prices our also manage our cost we out last take our we improve increases obviously, much could we margins. concerned Well, of whether could would – we that we were started

held that orders fact us All the like in pretty well, along up those businesses, the with the way. Imaging of coupled helped our commercial

and – the of increased way, it’s a prices, because flow, headwinds us cash as way, in looking the yes, and unpredictable. a way. cost We some very good we kind were we we confidence. by had were just took weren’t in any at we So out lot But more given cautious were trouble in

raised we our outlook de-risked So QX the and at same time.

that’s No, fair. Yes.

spoke expect for months quarter. X maybe we margins and your this now. for you’re ish XX% like Imaging in XX% further you’re the Imaging margins looks was last something that, so Digital fourth to at of when quarter think for quarter? we I view XX% Should next ahead then quarter, It increase like Digital

bit, little A yes.

to fourth for I me let overall – me do. think year, is easier to which the in go quarter well, talk the

which XX.X%, would will For the about think be be year, XX than we better year. we last at bps

XX.X%, I’m think again, are So is I of be little there picking QX to softness range. commercial some here about the up. that because our businesses market. going cautious in But a Again, XX.X% Defense better is

makes that guys there out last want there mean That know and to Yes. billion potential to about this achievable that XXXX. about for given for all sense. world that X while take, ‘XX, – flow the about just things it’s talk free And to I these I do, know in early me. in Or we I was you kind a then of for or cash around reasonable it shoot last for? not $X of but for bogey we’ve like months? Is and now this give FX other is don’t a talked still the is target

‘XX we said to about. I too billion capitalized But the – look you little we if FLIR acquisition approached that that, we R&D is picture, net this, me way of for X.Xx. a which is big a have we I Let debt-to-EBITDA with the started have think because started at the after having say, the high $X worry year

well X.Xx we will But And to going next year of everything in of end that to do goes the down be that acquisitions to million of by will down of interim. now. X.Xx. $XXX of making acquisitions. By ‘XX, then and maybe us about lot If the down the a by includes cash be we gives end to year, the X.Xx. end along, the We’re else all

I billion. cash at $X So a flow the make is We won’t the probably view. longer-term full look way

and we later a can We close, in but to if same be levered something will importantly, the we put position on. acquisitions. do will make to come most At we want be bigger us able where time,

you. Thank

of And America. go to go ahead. with next, Grenfell Bank will we Elizabeth Please

you around morning. good that us acquisition Can this announced the details morning? few give Hi, a you

terms, us – two Yes. that products about important I’d we California. while to. gives our ads the we in does it’s to disclose to really XXX be happy employees. didn’t our is don’t It’s it’s Northern really, It’s it a What it very – have. got components

the drive power in these traveling-wave a tubes. to in you we make area, But order tubes, microwave supply. First, need

now system a for of So to had of and and far, for With to tubes. there that, can the our a buy this supply in domain. we’ve been suppliers power to power both essentially people go supplies other we’ve is looking tubes And scarcity that we acquisition, supplies.

the application, in power we can For $XXX,XXX and million. about up over we together, example, application. a When the it that given with we tubes were studying, they $X put for sell sell the tubes we to add supply

the that’s in Defense So area.

about seriously are – – basically we to we about have Medical is what whole added components, supply, use $XX,XXX power system, system. high-energy that more again, that, X-rays. the and is where to can the we to in of product that we’ve We area to products cancer supply that go sell that into brings makes kill to $XX,XXX, cancer. in second radiotherapy, ETM our But And The where that developing added didn’t microwave field X-ray systems system therapy, that a And that again, in energy the something have sell is pulsed $XX,XXX. that we a products system. gotten used microwave we’ve us. you that We’ve for in high cooling

they as own be to happens contacts $XX,XXX, now products. maybe we we So with customer they that by grow over have $XXX,XXX really a what accepted good radiotherapy the can used $XX,XXX, have our have And is system. it have content per been customers to and grown

as we’re our well businesses. So as this to both making It’s complementary our radiotherapy that’s Defense acquisition. why

FLIR of And shaping impact margins? of then you how quarter, Teledyne on did portfolio impact have the Great. the Okay. this that within much an did

December acquisition them just basically doing slightly, It unsuccessful, commercial improved before It commercial May line, product they bought where costs were we’re trying be a the in is to in. took of We they margins in of to XXXX. our but the It business XXXX. difficult what a produce workforce. more – industrial, reducing for that out we was by example, was bought UAVs, importantly, product

that really in – the of. that amounts was products substantial in the sell FLIR, we that industrial product to But domain, we We kill. have in domain to have good we compete defense a had

being could any disappear, or – And if are are How sales that think then And to the shift then they’ll Okay. to when, the headwinds they of right about lost I shift continuing you now? in, because one to that? speak think about please. more you starting abate? challenges thinking the way to are those supply are chain And if

the answer happening that What’s shortfall first. to about have us me let quarter. quarter that of sales over in rolls Elizabeth, million question the we $XX part over second is a

like cumulative. not just you So get happens, again. ship, $XX $XX million we have The in gets ship of then adds delayed It’s loss it’s to next we what couldn’t we four not quarters it million, that quarter, sales parts. delayed, we million. What get $XXX

start may million, printed now. the flipside, right to more going by circuit first we recover that, from of saying, question, problem some seeing a looking, your So board we in $XXX hurt especially the it’s simpler we the us us improvement $XX The so are assemblies. million but for part it’s quarter

to Teledyne, For was on day we DALSA and about address reasons. occasion. problem. that X,XXX example, various boards to up for sell managed from that our And cameras drying eXv, circuit a need We’ve

So that’s good.

shortages company. supply still systems arrays, for is like FPGAs. are Having arrays, number gate in And are gate complex people improvement have happening such there, market that have also to we allocating which are what’s each field-programmable the We certain which – said that, components. more some really tight

across our Teledyne, effort very combine not suppliers. and needs effective all of Having numbers to said priority them is a prioritize to give that, that have our our improving. underway We

that Some our for asking non-cancelable from a of suppliers out are now. go orders year

there, also have we’re doing that. And you so obviously. choices make And to

it it part So not. arrays, of with that’s is PCBAs, part relaxing of but the field-programmable the gate

overall, it’s is But mixture. say, improvement. I’d there So a

Thank Great. much. you very

Sure.

Jim Needham And & with go Ricchiuti next, go we to Company. Please ahead.

to are Good a you environment, wondering, of reasonably business? business you. see bookings up do you recessionary short-cycle beginning well. think seeing that just of your Thank areas the that of any alluded first? about soften And morning. And in as business short-cycle any in which in that your the mild area to you Robert, you I’m business the holding signs

Yes. In domain, In of some with products don’t start need make, of that – our we for go the the make some demand that that example, products then they obviously, that and much products. their Digital for of delivery is we in automation softening Imaging. as products I’ll as into the warehouses, improvement of of

not because the hand, such we diversity why That’s for other – from we the because On us all them great firefighting, traffic of to range kind broad a of it’s simultaneously. security think downward as products. of we not impacted of is getting products pressure of that have the to our portfolio are –

our We hasn’t Digital vehicles. in soften went we for domain it better. where much have you outside are softened if environmental oscilloscopes, think have Instruments instruments, it a Imaging, might marine lot marine yet. There, but Now we things example, we instruments, we protocols, have have

We the X.XXx. book-to-bill getting Instruments are is in our still

to I people of both and our talk buy terms us. who that’s is and breadth always our of diversity the we for, products, geographic what So protecting our and what the also of the Jason products that – but our is diversity where in that’s about products thing supply happens of

areas. I we okay. we’re in overall, have some So doing But think might softness

see you meaningfully comment fairly Okay. X M&A over really could net And coming about X the that certainly just the leverage and made down next the to on you years.

the – do come a down macro the smaller potentially gauge doing to that giving potentially larger big and of assets? you just you’ll in Or to a whether deal. larger averse Are case deal are there maybe lot alluded valuations XXXX how ‘XX? are opportunity it do for a You could of deals a you – environment you and is certain to is there

might look including in and you So in Good point. in rearview Jason seeing nevertheless, as at Right says, rearview now, mirror, XX-week everybody market public look highs, the for often us, you’re the right, people ago, companies always mirror, X be it’s back. right? It is the there. months the if looking

in persist done we have things ‘XX. to made in way your When net opportunities. lower during did acquired are we ratio, rearview go eXv it and what So now, then they as I if expectations essentially mirror. are XXXX, down more end we what numbers million – do see forward later we more bolt-ons What $XXX looking that think and to historically. If And or came focus ratio you to so, the debt-to-EBITDA see up people the of backwards, our of the by our can we have almost Right we is see period. came in went it interim, another years zero. Xx. acquisitions down X.X we will

$XXX million So, number spend able for maybe the to us XXXX acquisitions. includes smaller quoted of being I

As the think things we little we so acquisitions, waiting a about we are people’s bigger obviously, not – – mind, evaluations. some ought before wait effervescent people a bit in little I are to their have but to

anything with environment the defense changed mainly in commercial to or has And area, looks? how your respect the is interest

Right seeing, at bought are a least we partially you also bolt-on the now, we in partially as still the But bolt-on. like defense our saw, also we in – bolt-on commercial domain, defense something businesses.

defense, commercial, FLIR a portfolio. be fit of the like the they either was the We mixture it if especially would FLIR in XX% was. will XX% some on larger do bolt-ons or But defense. stuff, our two, commercial

combo. And at XX%-XX%. look at it’s will so whether we look XX%-XX% or We that, the

on quarter. congratulations and much the very Thanks Alright.

you. Thank

Next, to ahead. go Berenberg. with Buscaglia Andrew Please we will go

guys. morning Good Hey.

morning Good Andrew.

I especially more know be of assets, in And indication move cycle can integration you margins – pretty have And are then quickly, discussion, can this industrial just during FLIR been and of you which how lines that what FLIR’s pace that’s a volatile on FLIR downturn? specifically, guess in business? trending they generally, short the pretty of are the Along I comment process. the to volatile or settling? orders seeing can anything, kind downside how any with

update you can So, feel that? us you about on how

Sure.

been Let in to start don’t book-to-bill to there and are traffic, get of rest systems, the maritime are some of FLIR, going just all infrared products, that, at detectors may have all security, I while the some on than Generally, if that have would more areas, of evenly imaging the digital the to I it revenues products. our the hit I not. think are like rest historically, FLIR’s me – imaging, with our because quarter breadth right Xx, now end of of the is. digital problem of to because close some we quarter only like have is From that we to those of rather breadth we – DALSA, instruments they because which the is tomography better during X.XXx, is skewed once, in at the than products paced ways – call say The the their of softness that from our again, of eXv. the

So, then the unforeseen quarter end you. to can and is there the closer the something only get of you happens. hurt it risk And

eXv – we it or or DALSA large working are have to have acquisition whether we will It out. hard that take in problem others. same the We was flatten very every us made, acquisitions,

of you generally, volatility, think I non-GAAP will some XX.X%. appropriately I from that. there will be about But been the very will while the should settling digital in. to a the curve, coming in has from shipment to bit overall And so a noted, margins, – settle think margins by down year, FLIR as perspective, They are that, curve. to we to end are flatten we be imaging okay. Having we working that settle little back said hard

really because We middle FLIR bought X because weeks quarter the I with that XX the looking shipment to mentioned. second an we of odd weeks of was forward we in are – quarter, shipped year product of cost. the last essentially end Again, that, and of of year

we But then our now. our things what the the make hunker skewed well looking all stabilized are of next XX.X% numbers. we think the for and of I and year. for to by down imaging that sure So, fairly is year end are And digital improve that get

And might where missed Okay. their you you can go? nice That’s any helpful. but expect deal. those And profile, on big this, maybe gave ETM color this have to provide company? on the you is some then margin I how information

have to million, we been be talk am XXX maybe The in sales, about on. that later a our from going reason it, hesitant it’s are $XX a few which hesitant Q it’s also products Obviously, little to Alright. I but us. about probably in the about But about people. days, anyways got is they buy

they buy tubes, our traveling-wave with and including their they So, power them. supplies sell

cost $X.XX, of is many look the if say accretive. $X.XX, going How borrowing we cents how accretive is depends be X%, X%. cost deal the So, on to be you at the of $X.XX, Could borrowing.

hand, because borrowing of X%. average cost X% other and cash not is our is borrowing cost with the On fixed borrowing X%, more our of like our

with accretive, So, our helpful. little revenue shy going a million, to that’s don’t be products. I own some it’s if pass-through $XX of know around

helpful. very Okay. Yes,

get idea the to an trying size. Just of

you, Thank Thanks Robert. guys. Okay.

Sure.

will Morgan Liwag to we with Please Stanley. Next, go Kristine go ahead.

morning Good Hey. everyone.

morning. Good

mentioned you chain, trend sounds missing resolved. really that quarter? provide on of Robert, you it ease mitigating off. here? had But like supply Where starting that it’s quarter, were we from you update? and does this have been at a components how XXX the quantitative to can And the for are Last actions paying your XXX

correct. you and Last by Kristine, started better. year, But the about components. – year, having XX% getting this It’s we missing are of our

the XX% we get and are at when number components like year. a time. were more at components There we course, Of we the started were XXX couldn’t lower that that

X,XXX about components. X,XXX components, over down has to gone missing X%, now are the X%. percentage But We

that it the get that. would said, getting absolutely in had on missing to are in is So, next it’s allocate the to order. right. we demand okay, longer. be us the those many as business I non-cancelable products The I of wish X,XXX are And so are is is, like side myself. The you parts, kind components, XX or we April. delay of where maybe side to flip are There I open improvement. XX love flip you, will I you a is going and that the

So, but better, it’s challenge. a still getting

I – terms digital had simplification of a And you portfolio return to activities. mentioned back to see. in maybe then imaging,

or Now, that initiative or insulated few small having quarters, cost-cutting and now for evaluating very minimal? is product a divestiture, a as loss-making assess potentially you are line. But a have of FLIR you owned a you pruned this portfolio larger kind

Yes.

latter. I are the take and some don’t increase do a XX-XX, they means – we lot know our making of money. make the No, are our we in products, it’s then We which products product out products that that we lines think all businesses, are and in money. of us of unique I our all take

we doing are like divest of not going any large are to do at that We at FLIR. part FLIR But Teledyne. no, we

We we add are certain with probably happy some are and we actually have areas. what going to to

up for headwinds? to things parts some of your guess What’s semiconductors, sneak I resolved I missing that chain, getting get we capacity mean the on more. that seeing continue if the to orders? I the demand lead you seeing example, are sooner. longer. of consumer driving of we those free the that instead color. surprised are helpful Very lengthen your just I incremental demand, rolling shouldn’t in for for could really some some items, other am And comment in would are think supply with one mentioned And Back I of times

using In things They commercial of are the some Yes. components domain, improving. are like discrete okay.

complexity. getting other But – depends on hand, longer. The in the is memory the the are some it’s On the stuff of times lead length longer.

go of me kind through it. Let just

If at lead lower. getting devices, are you look times memory

the complex you On still the other at hand, weeks lead more processors, like look microcontrollers, are devices, to XX if weeks. X times

of So, it’s kind depends device are a we mixture what for. and looking on

and them some For schedule that. our to people I we improvements on those our have into the as the are of good there, circuit require products daily some But a said, simpler feel to suppliers’ boards, and components out. we printed and basis factory about get go real very also making

mixture. a So, it’s

Great. Thank you very much.

Sure.

Noah ahead. to with Please Goldman Poponak go will next, And Sachs. we go

Hey. Good everybody. morning

Noah. Good

to Robert, spread I around bid-ask just the wanted process. to in M&A the your go commentary back

to companies that, similar other that it yet. hasn’t broken yours a that really pretty Some to that, suggesting but pointed recently have have strategy

a morning. have this You deal

You saying the pipeline are looks good.

what You immediate-term. potentially could in the spend are quantifying you

to? in like that you ago, this, that put maybe that that have are ways, you am has yet, narrowed, finer almost cracked but guess and just has answered saying really I it it curious I or a year spread challenge spread hasn’t point, has now a to but just So, already – markets eventually peaked some bid-ask public has

it’s are evolving, becoming the uncertainty in the a pronounced think is is little it the looking are right. time. much Noah, the cracked the private they probably bit. for is entrepreneurs reason that at The future And more world, at way private I – this deals at looking in things

to get things So, entrepreneurs not are that people just have short-term. like XXXX, we business reasonable built in they becoming a because been the business have since one going better that see those are they more the bought, in –

think the are on that, right. I deals So, smaller like you

looking And like now my $XXX We look my am at, four in I some which well, the seeing bigger more to to high they and at months, was Then seeing and we trading $XXX, now better be beyond and still get another pricing. I months, people high are where background. deals are say, it’s in highs the six public going that, XX-week Having said be companies, that, $XXX. going not are Until at $XXX. on actionable. think more they look the is are was mirror we

Okay. That’s helpful.

price little on bit we And how that? where talking each sizable on reducing provide side? referenced done in you more cost and a just business detail the also have are Can increases. you have You

depends on business. the Yes. It

gas, we because been have businesses, imaging, a we increase example. hard have connectivity been prices also time lot marine, able the let DALSA, unmanned prices of X.X%. X.X%. have about give In just but In me have, for able about to an vehicle, prices digital we oil and we example, increasing supply to programs. products increase also of Some programs eXv, where for a you that But we long-term

price have increases are On about X%. average the other the defense our wage materials. the That’s said scarce material year-to-date. against have cracked about some And products, extra company, that have that across X.X%. we X% X%. about Having or products, that, we increases the in X% gotten price on hand, we been then our of excluding or that, X.X% been we have buy pay And that that for hardly

that’s our hurt products. are getting we scarce a $XX-plus spending on wash inflation. been we extra So, between of the increases Where price course, and million is, the

away go time, over too. think will I that So,

which And allow did products Okay. segments roll FLIR? off or you of to lastly,

in And in that just months Just five of commercial and up. already months, an them. an about I industrial, those we rather really are that business, not else’s in one XX that was buy Actually, that in competing want December put four it’s truck. with – another. was I really, truck it companies and bought advanced market. imaging product there basically with they Me were of they on ilk drone trucks. we XXXX, a I systems think before build Altavian bought the them, to picked that discussions our inexpensive very There – very domain, somebody difficult would that are don’t on

that’s one. So, the

Okay. Thank you.

Noah. Sure

And End Q&A of queue. further questions currently, in no

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great. do me would well. call thanks Brad, of the be And again at end follow-up as that questions, if Robert. have you information Thanks joining certainly replay this for us free feel call the morning. everyone could you give if Bye-bye. the to And

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