Corning (GLW) 25 Oct 222022 Q3 Earnings call transcript

Welcome to the Corning Inc.

Third Quarter 2022 Earnings Call. [Operator Instructions]. It is my pleasure to introduce to you, Ann Nicholson, Vice President of Investor Relations.

Thank you, and good morning. XXXX QX Corning's to Earnings Call. Welcome Chief today Officer; Ed me Officer; Jeff President are and Wendell Executive Chief and and Vice Executive and Chairman Evenson, Officer. Schlesinger, Financial Weeks, Chief With Strategy Executive President Vice remarks I'd that forward-looking the Securities fall that of Act of statements Litigation meaning contain Reform like the XXXX. you to Private remind today's within These to differ results could cause statements actual involve risks, uncertainties and other factors that materially. the company's financial These are detailed in factors reports.

core discussing should data. unless performance also using note consolidated You comments GAAP measures, be specifically to our our we'll indicate we results that related

core used analyze Our performance management measures measures are by business. non-GAAP the to

can the quarter, For currency increased This $XXX mark-to-market earnings To associated third EPS comparable capacity flow. of and core hedging by results was our in at Investor between primarily corning.com. our accounting core website quarter have the the value found clear, charges the the cash with be impact on GAAP with and mark-to-market Relations core company's primary section difference Reconciliation noncash optimization be million. contracts. charges to noncash of and in third the from associated these adjustments no GAAP

Wendell. Supporting access live. website the our financials on Corning Interactive And also now being downloading. They're for call are website downloadable to Analyst the with may You also over results available our Center. slides shown in on turn I'll

that demonstrate good Ann, and execution. morning, everyone. quarter Today, strong you, results solid Thank reported we third

More in operate Sales We leadership was secular offset to sales optical important a able last up and growth slightly to Corning billion, continue versus $X.X with our capitalize technologies to as quarter us strong and our third on solar. were were and display communications We of in allow year, focus EPS and approach. drive trends $X.XX. a decline business capabilities and well each distinctive our on

in production evidence display total, glass While guiding a panel we we the well recovery positive despite environment. additional maker significant before like we economic to performed bottomed see September, that demand. in believe would In

context panel XXXX to its second notebook our markets. since On the expectations. the wanted our Before or within production June in across smartphone we details, and down. quarter quarter. was some September rate. tablet get with what being lowest dynamics and businesses further year-over-year, into was range that even facing end XX%. Panel we're And multiple of from you I results sales X% maker smartphone sales decreased utilization quarter, intensified third set we A the demand million million on its is in to A year-over-year shortages. at annual yearly, XX% still million unit the last XXXX. Nevertheless, cars told call, June markets these component automotive down in were Several we the XX in lowest month vehicles continued delivered declined pre-COVID maker utilization declined level its XX short the due quarter million continued to with production and XX of guidance level to XX below in our automotive even

market, two we and and we're benefit Hemlock in captured in investments trends year-over-year to in We Emerging energy, year-over-year growth the strategically continue which solar to and Optical ongoing from Growth delivered clean We in infrastructure demand broadband Communications, address. XX% positioned contributed growth XX% to secular Businesses.

and production panel expected quarter, market In the display. key a deeper panel bottom why which to deliver the production a quarter, maker profitability. than September, reduced with More reached position In both in And began even we're significantly reductions and of some our how the September. quarter reached we're our and we're third In And start strategy said utilization I'll the that take almost display XX% we growth. the multiyear sales decreased look. volume glass sequentially during fourth markets, the with our In So second seeing the industry profitable levels us confident June. third in continues our that responding. let's a accelerated panel ago, reducing to in since correction lower an quarter, the maker XXXX. reached makers in of believe level we level. panel lowest XXXX. maker production year we What

panel guide will expect to So during recover? now customer that position market utilization a profitability market answer exit whole to evidence and we the sharply question would relationships rebounds correction and before glass our recovery when the additional maker glass and we fleet. volume stable strengthened importantly, the like refreshed price increase to demand. in is correction. We've our we is, Now this a positive and robust expect see manufacturing Consequently, maintained we when with

always, growth As Overall, in consumer In Materials. display. mobile you our Specialty sequential semiconductor keep progress. we product as good will feel and launches very we in strength informed in execution drove we about customer electronics,

sales expect and IT now be unit quarter. significantly smartphone declined to year. noted, XX%. notebook decline to XX% we I retail We And demand about the smartphones the As and for tablet expect down in

We half. the second second to to expect than greater in see will the the the be sales year-over-year decline half normally first the in in we half in This smartphones, our notebooks and growth limit first tablets half. relative

industry the approach market collaboration our Now leadership, more our through and our Corning we continue outperform said, that leaders. with ongoing to product

the consumer Over content term, long us electronics strategy will grow. our mobile help in

and and launch treatments,for new As and factors. form optical to glasses premium develop existing we continue

that semiconductor announce Corning manufacturing. our of materials equipment us semiconductor July, to vital approach government Additionally, Hochul, facilities, we're and Senator, In funding more our Chuck industry. optics which York expansion made New advanced in Schumer an and joined executing Kathy supports the to Governor,

needs, we customer with including new expansion manufacturing positioned than semiconductors technology. of fundamental to us are support will We've the helped our industry virtually nearly technology step products process well all respond advance to interact course, keep XX Of today. the more to every years, EUV for and for and to chip

and profit outperforming delivered automotive. to we're on vehicle turn Let's despite constraints the and Technologies, year. the market production, for In growth Environmental the we sales

when we optics auto generating prepared to Glass Automotive We our are wins effectively meet Pull navigate adjust increases significant to in also innovations. and Solutions our variability continue for normal glass technical operations is demand industry and We're our to business. the production rates. to strong production in

the enhanced assistance further drive more quarter, to business displays. CarUX, positioned features. patented continues a auto owned During as our interior use leading company future Innolux, announced the its car its help industry display of well driver automotive cabins and advanced, Corning technology be to grow designed-oriented of to offers by cold-form the

The to new In large multiyear a to of to our announce Raimondo, sales. third Communications, networks, me facility Let's experience to was growth Commerce, industry manufacturing Secretary a which Optical in continues continue largest move the U.S. to passive of joined support we optical growth. CEO, August, and wave Gina increase for AT&T John capacity this to Arizona. contributor quarter Stankey, and

You may legislation helped recall Secretary for idea all. pass Raimondo's the dedicated infrastructure to leadership of Internet

will broadband year, to optical record phase boost we manufacturing Our September, support optical to fundamental as network capacity human In opened we're fiber demand. to increasingly new new of viewed demand. every meet access deployment is for plant And announced as innovating streamline of of for a cable network accelerate which serve Poland we plant sales a quarter, setting committed in first helps to and the us optimize installation year permitting, another connectivity field the XX% additions operators Optical X the have strong In our quarters growth. testing. up and right. Evolv portfolio grown

fourth we down to However, customer be timing expect quarter of to the sales due sequentially projects.

than indicate through customer continues energy global trends. for Turning take-or-pay grade and to evolving long-term imperative growth securing new our participation the closely commitments rapidly, reenergized is polysilicon. more solar a ongoing market capacity renewable by to solar starting idle economic is that tied current solar. the industry market's We behavior up our The the and in to contracts

to helping energy highly that relevant operations and and meet technical sales X, manufacturing the which quarter Corning's benefit potential and will solar. Michigan's grew in our excellent advance capabilities, will broader us of prove be We see infrastructure will program, Third increasing and we renewable demand state believe significantly help growth industry, expand polysilicon. year-over-year, and from the X global we to for investment

Now profitable strength positioned We very as execute where to we'll continue invest to what I leave remain conclude demand. you to pace deliver and We'll and like well will we see remarks, growth here's discipline. I'd my multiyear to with with today. meet

resilience of more the to an We've years, is been for of playing well Our life-changing growth is markets We've of portfolio maintaining out our to strategic provides attractive inception relevance our the life electronics that telecommunication and science XX smart over automotive ability past, capabilities power display the trends this long track XXX even through and current to enables years, markets the environment. cohesive for established along with in record secular ongoing mobile and time. content moments into leading focused us of inventions. for in a consumer our deep while life-saving and present the trajectory. XX set like what distinctive success In devices. and long-term The basis since drive

call our outlook. turn me priorities let more over who Ed, results, the financial to Now share on will details and

everyone. Good Wendell. morning, Thanks,

Let me a start in well by emphasizing challenging that environment. we're executing

of proof our even a a working. inherent fact We're approach the the resilient and Corning that Our balance our built More quarter in performance third cohesive of to point portfolio downturn. be in was is the

in Technologies XXXX. third X% growth. outperformed the the $X.X third double resulting the Environmental Communications, in year-over-year market, Optical look decline which up Technologies, year-over-year down year-over-year. Growth utilization segment strong Sciences Hemlock was smartphone experienced digits sales let's September, were in In a results Now financial Specialty XXXX, since XX% for the Materials, from and for at and In our delivered quarter all a Businesses maker quarter. Emerging Display we in third Sales Life levels the quarter. lowest panel billion,

us volume technologies. XXX the was to was XX.X%, the underlying outperformed basis by driven keeping cash $XXX on overall. our $XXX And significantly year-to-date, year and free quarter, generation. cash quarter, display during million, another flow XX.X% operating environment volume was able third display sequentially down and challenging margin to pace offset the Turning points, million, were technologies, the markets XXX was we and in of despite and lower in it margin Gross respectively, lower for profitability. healthy we In

let's $X.X Now billion. grew reaching In Optical XX% the to sales year-over-year, results. turn Communications, segment

and to strong Net was million, year-over-year, XX% continue Networks growth $XXX network driven Optical this is operator of and to in cloud. year-over-year Passive strongly a driven Our by and believe leverage broadband wave of experience XG, up large We incremental by share by a multiyear from investments demand was and broadband volume. the income larger investments population. private public the growth. to that infrastructure unconnected much help the connect supported bring

more secure appropriately current we're our incremental customers. materials commitments, serve to We to and production with also recent from scale to customers. to And increases shared and pricing demand taking further appropriately our raw new customer continue certain we're cost actions investing energy in and

in mentioned we've can see business the As and we timing quarter sales fourth lumpy play optical customer the of the be from down past, based as to sequentially be expect out quarter-to-quarter, on this in projects. that you'll

Display. to moving Now

due glass again cost in In price will consistent the reduce supply-demand factors makers maintenance and additional offline below remain income makers other September, levels pricing lower saw the reduce our after sales glass we that fleet As continue once to with a year-over-year expectations. balance for glass favorable technology cost sequentially. favorable include of of nature to resulted glass was environment and panel drive some which XX% manufacturing. latest us as we extend reduced glass Corning sequentially, glass of panel XX% extended our we're we XX% life an XX% And And upgrade updated took makers tightness. production third already net decline and declining believe the period that pricing taking this of the fixed low and their display tanks. you new sequential opportunity tanks repairs in quarter, production, to in our The and also and high and volume enables year-over-year to

restarts actively to As demand. align our we these through continue supply work upgrades, managing to we are to

periods costs is to makers glass Another fixed environment profitability challenge. is have during glass maker current of amplifies profitability. the maintain inflationary low for who volume and It factor challenging that high

We up consistent with expect glass to quarter fourth subsequent and the or third quarters. glass quarter prices be stable prices in be to

while XX%. down in XX% we And So continue reached down year-over-year, to we notebooks was in demand. demand significant glass would demand grows, operate more down bottom the only for to by profitability expect September, believe from and market. to a position strength in and utilization we we Wendell glasses, outperformed the were premium a recovery for when semiconductor smartphones display to Specialty market panel materials. volume our overall, But that glass noted, before of see with and improve. increase strength sales We evidence like maker the our as strong we and driven in tablets X% market In Materials, the got

be Third adding million, a capacity to sequentially, demand by quarter segment segment, X% row, we were sequentially premium our year-over-year bringing term, And to and in additional and and product up and and cover markets XX% New to for lower to down delivered expect launch launches. premium optical Fairport Net the smartphone in quarter weakness and second the expect to in year-over-year. to in facilities market next-generation to and quarter, Advanced for the we new Optics support products. record in expense continued continue income driven and sales we online treatments. the materials sales are tablet outperform volume Long for quarter York. development down and our as at $XX glasses related customer our the fourth The profitability due sales Canton, notebook was we the intensified resilience develop

recovered year-over-year a very $XXX to quarter quarter, demand million, sequentially. up XX% second quarter production Turning second from sales In lockdowns. Technologies. The and low the Automotive as Environmental COVID improved XX% third were China after

to However, vehicle continued shortages. due the constrained production remains component

improved our In growth, sales profitability we XX% net income to up addition with year-over-year.

component strategy a remain revenue a content-driven driving gasoline Our that working, particulate market. in filters strategy, is critical weakened even of

emission performance. shipping million. $XX Life and X products consistent Lower research Our products. was Sciences, year-over-year. next-generation sequentially and were to filters In near levels sales filtration as was growth reach demand enhanced million, now require X% up by $XXX for customers are COVID-related standards Net in income offset

including research commercialize process. innovations, production both in continued ahead, We bio new to therapy see cell we continue looking and platform. to expect the gene growth and And

Emerging million, and Growth year-over-year businesses, XX% Hemlock X% down up $XXX sequentially. were in Finally, sales and

materials, challenges. vials. In help polysilicon expansion September, in We continue Pharmaceutical continue support planned scale tubing to current funding strong sign and increased contracts. was solar capacity customers million our and address and announced for awarded health to BARDA from long-term to to see ramp demand care and These pharmaceutical advanced, that industry public glass to with demand semiconductor and for solar new grade up are additional manufacturing high-quality for $XXX rapidly the expansions take-or-pay Corning it capacity we designed health Technologies future

about want Now currency to take a to exchange rates. talk I minute

you has year. As the over know, strengthening been dollar past the

exposure an reduce As have as a the reminder, we actively serves enhance hedged and our returns. This our past tool to invest ability to shareholder earnings protect provide currency over flow, our effective foreign volatility, decade. cash

most exposure and Our have we next largest the yen, of is hedged. year

our than our to We and remain under provides. very the same cash XXXX. program since certainty hedge contracts economic the hedging rate expect in with received pleased it We've more core We're inception. billion our their in $X

for Now to quarter. the outlook turn fourth the let's

in billion to of range the to in $X.XX $X.XX the $X.XX billion $X.XX. of sales expect range We and EPS

will by in factors. Materials, reflects a of sales we pacing Now In of customer Communications, course, biggest the and expect In demand And quarter projects tablet quarter. Display. Optical lower is the the markets. for Specialty impact guidance our element guidance our smartphone, decline in sequential fourth driven notebook several

I September to have glass we in evidence yet enough As positive guide levels. improvement significant demand noted, from not do

fourth the of in the quarter. flow billion year, in strong expect full free $X.X billion. we cash be to flow cash $X.X range free expect We And to for the

wrap a key with takeaways. to like I'd Now few up

evidenced the because quarter. of Environmental our and a executing to and we're of Corning noted by I balance downturn Specialty of remarks, well. we're as opening resilient built of our cohesive our Materials approach, performance even More Technologies the As in this be my at inherent And portfolio

a Optical approach Our growth we're In all drivers employ tied continue key highly to as secular and Communications will trends and remain long-term intact, allocation. and strong maintain to positioned capturing growth solar. meantime, disciplined we the capital well our sheet continue to to balance such

Q&A. we're I'll over manage profitability, cash back Ann and the flow. preserve tightly turn that, to Given capital prioritize expenditures external environment, it to for actions With taking

for the Crystal, ready first question. Ed. we're Thanks,

first come [Operator Instructions]. And Susquehanna. Hosseini our from from Mehdi question will

there Two can you will into. of visibility macro I'm to headwinds. are Is things a especially thing you there to better lot display to expenses. OpEx managing I show is with rebound. moving want minimum And flexible understand when a a just understand there trying with CapEx, same I are dig how And us? as that parts, no offer with the

CapEx the we next into will basis? on year assume show should year-over-year that So a trend decline a

environment. certainly say current Yes. Mehdi, I actions pause to spending would taking this OpEx, we're what in on

to to about going I respect fact this fourth time. into as think, of and you As our point don't we definitely I a here given cash to significant feel at spending our our that see capital, little goal pausing take at the And is we're actions flow. to least profitability drivers, coming growth long-term be rate mentioned, bit. we're going to in protect protect with the should quarter, down spending our the we and good go

Our next question?

Instructions]. [Operator

comes Advisors. Fox Our from Steven next Fox from question

questions Optical, I could. on if Two

plants, assume quarter helps secondly, plants the it new us how is ramping Optical build-out offset Arizona. I that how can the margins with helped First of helped for not that confidence or you of in all, the months into the you see then worse get winter pauses terms Europe? gives And the issues seeing, in you year and you're the the for more it's project what during you has some and as for that the and what of give and especially next delays, a with the push-ups -- something of sense some of into

we to that the we pretty that as strong. Macro be do you what So try and is is of closely. it nature make sure you But in is we're it's a demand will -- long-term Opto Steve, incredibly all first pretty is those and that there customers as supporting follow know, industry. the big, telecommunications players macro, to concentrated

happen that the or all when timing altering to what So our some their that's leads their to end is of lumpiness changing bigger tends customers revenue. up our timing of

we're Opto. evidence is So I drivers sort Opto pretty to demand the in be strong. know, highly demand tend just of pessimistic you overwhelming very confident on that And as but here in

happen that's timing what time that as during which just to or or these the a that's in right to hard X months tell last little winter longer slower seasonality-wise. long be demand whether -- think X legitimate, easy how bit little What strong. can I is than can the for us And Now happen? you're to moves though a tends months, is it's super to say Opto for tell.

And then plant on impact? new the

takes a should it go in Steve, we I fully like I use little think as we've go opened fine. XXXX. was that while are ramped that recently cost and the capacity. kind we ramping to all for and added we And drag some say, impact financial of forward, be away going but see I able feel the We'll plants to of the to that sort

comes Martin Yang And Oppenheimer. our from from next question

changes . First, reliable where can you you maybe seeing X segment comfortable a more be share a with recovery us after for closely monitored in display those X calling indicators? mostly indicator leading will or

Great question, Martin.

operating, panel the bottom timing a good at et and what to to a say, things XXXX. not is like happening very then They're exact good our are being exactly they're as their makers sort So be there of inventory, tell following correction a really where And with our because are at in doing at going last turn. for of cetera. can instance, we analytics calling we year, said able was good

robust have and analytics our maker a but accelerated of quarter panel actually in It's until X much should into they X, then last in quarter said instance, the more way quarter would start for correction X in started. year So didn't have industry quarter X.

now in this when our though what gets a is upswing bottom. buyers into of comfortable analytics, The sort calling So with we're behavior really comes we're really they industry. that the of psychological on

do And take a so to do panel to that, try price softer a the but look way inflection at points. we tend little we it's

the absolute And level it signal the but commentary How makes and buyers, do makers. when turn set retail we what constantly? overall. becoming that going they and where maker buy that's panel have is actually just their things it then interviews chain in is, actually a is So the tight value right, they are and is about for they're finally signal that's is are as with how them for How to because seeing feeling drive behavior.

we'd to September pop high yet we we accumulate. as see all at now need right? look say more bottom. we And But just recovery, was confidence a of sharp is the that question up. month when what things, we We'll see of So what tell pretty can't that a exact those do we can't it's with say

Our Wamsi America. next of question from from Mohan Bank will come

where we hedged weeks of but the terms I relative to of appreciate the are Wendell was you but . to you the Ed, least prior past in in if I you up maybe And have say would on question, in guys moved could the absolute, weeks could, of inventory? guys wondering at to chain. follow not yens largely if -- levels past in that fact cycles you display terms XXXX, that supply disclosed of obviously I inventory for in relative are characterize

is the hedging view little and strategy of impact bit rate maybe calibration Maybe on should how you investors think core about Your on . a it? a give some XXXX, beyond can potential investors yen longer-term

we little at approach now inventory, range sort right bit starting say would healthy. to Thanks, tight chain for Wamsi. and healthy Value the a is is of

we that is like the "Okay, do. can analytics where that's So the say, supposed what right, done one correction has to it's it of

value on overall item? Does chain about that how answer inventory. that question your that's So we're feeling

mentioned we're various to does, the various I give any confidence if could or of -- guys in of utilization that sort XX that end you XX the be? there where at in that? And some like depending past the at end just have think weeks, you was rates it was at does wondering the times Wendell. lower And that Yes, cycles. of higher bottom I we on increased are of

pandemic sort what's the is healthy challenges the we update is changed So you chain. what should in and this But supply and we what the should probably all do if of not that of of the you and how thinking you with it how benefit have will analyze question a view you the sort give industry. is our And up overall. of we Ed we follow healthy

And yen in currency make comments. or couple Wamsi, on the general, on a I'll of

think So obviously we're I you the know in yen. long

currencies weakening short are are currencies. in the We versus other weak -- Most or dollar.

XXXX And to do the the rate place to yen, beyond forward So where you hedges think out go, we're sorry, where we forward trying spot beyond them obviously farther are overall weak to fact taking XXXX. in of dollar the affords to is exposures. an be opportunity opportunistic that farther impacts the right? some the that further they're continue rates we then some with we is against the of rate the respect below do put is, currencies in out. during So that as the some this of basket rate have to protect time a look spot our sort and despite We weakening opportunity and or core for as to rate period yen the us hedges And out, short. in ways -- things the we're current place and ourselves about

try protect how at this to investors about opportunistic rate thinking ourselves we'll We level. core be So current people keep we're it, are going and updated. understand and to

please. question, next our And

from Tim comes next Our Barclays. from question Long

Optical segment. I the could, Two on questions, if

at you parse about you side? this are to splits about a and the little the macro that and in looking throughout the years. over we're the last on customer side do maybe deals happens starting the can priority of then potentially talk builds, little been those just and the a quarters, next telco And on a lot the X you strong few whatnot spending are the looking hear fiber little bit the how obviously more about to broadband could bit world you First, if energy data bit Are because initiatives out a caution -- increasingly which base for center affecting the really just that talked make industry. telco seeing in side pipeline. have or more Maybe just looking pressures costs enough in there's the Or government on Maybe for telco telco push macro? you still out you hearing a vertical? timing think from few side,

Right.

it our post So numbers really happening when I'd you've all like customer say got that's that really And that's our then is for because environment timing. strong. macro is

are it book, And in really book, would project those right? up be order to And timing on. answer our going from more So then anything being our us what's able what's our key it order just ends basically affecting projects. so is than long-term some else, telcos

And one, so they kick they off they conclude one, start another.

And so those can be lumpy.

so plans know ones still want we'll short to how that we're and they cable, right that share tend they get to more ask are. much demand, In the more fiber especially and we're there's their because signals don't and I macro, terms in the that of and more aggressive

not much world they sort we major macro, The a demand more in are we're So than That positive the cautious. got catching of their almost the not and don't programs around be pandemic as mean the things of us. that start sort just of for hearing capacity combination all during of that Does probably that to a signal XG, that these make their cloud, macro. experiencing it. as still We're initiatives, well the they guardrail consumed basic may you're right capacity really all all broadband the government another year, how right, that up the doesn't happened kick bullish as to demand to lot that getting in of well are really by something sense? as

Yes, Very, very that does. helpful.

question Our Spector comes from from next UBS. Josh

ones, quick I two if Just can.

A on seems bit display. level this curious pricing there on point. year. little surprised just confidence up still your in bit pricing into It next comments at talking about So of little the a early

a follow-up Can So out rates something or what regardless Growth comments increasing within charges on I'm is quarter. of just the scenario? was restructured on potentially see kind some you in then depends that just provide the restructuring if on of that you Emerging that curious Businesses? playing utilization And the

on it, driven quarter. correction performance by going to this stage really our stable confidence have every been our single So throughout this including throughout in into last up has price and our been prices here of where

So we going we as be of good Ed stable pricing at, we correction we're is that to the the of correction. led expect of heard has correction the bottom you continue into and from throughout the bit and but to to exit to where as dynamics this up to the stable about sort been feel it

I'll on Josh, restructuring charges. comment a make the And

quarter what was as So move sort high-volume X this Oftentimes, manufacturing into saw we related to we business, primarily we Gen our more state, And an advance assets. moving towards like early-stage a technology. commercialization. have of you

cost goes driver primary Gen the obsolete significantly down sort of and of Our the what happened assets, third in those that's quarter. we X and

Cross next Credit Our Suisse. from will Shannon question from come

the orders backlog wanted the we you're I should to bringing a opportunity from like IRA seems potential capacity more over this additional for to big bit about thinking how ask may the capacity you and then a if and to a solar. U.S. time? think or it Hemlock, about especially talk could be about back you for Can start what me contribution be Because

third feel That in strong, growth was we've display so ability that offset forward. we as lower going And sign to brought to out are Shannon, a the we great see business. up quarter. sell volume customers and continue online. And secular of our Solar our great a first, the capacity we and our part would say orders the of I trend about

the that as we're that we're And exact look us. all we evaluating can more think when and shared, certainly of how online and I and the process that will that in have taking bring happen. the all through timing passed impacts we recently that of of we've capacity a legislation

little in you and a can view about over think and I all more all positive time back as we'll can come bit you detail. -- us, for talk that it

think we to into good mean. update Shannon, really probably on and year Corning." will say, I as think we turn that we'll is you're it right what this the for look "Gosh, you And at

And Deutsche next we'll take Bank. from question Niknam our Matt from

I Just could. if two,

there know the end was are macro seeing propensity Optical. tighter demand conditions and First, broadly that your more invest heading financial sounds about I talked impacting in asked about a customers' you there's backdrop. your little more to across question little But a then year? know bit I on increases, a on pricing, markets, secondly, bit coming more it next And into like Optical. pricing be you've could

pushback of increases Just in you've conditions. these wondering seen some digest hesitancy of financial any light of tighter to the sort maybe or if

markets. end conditions So the out really we're seeing play in our economic

we're in So in already. that as panel notebooks, as significantly highly those markets be to opening consumer my are maker whether utilization, seeing or it's consumer-related I down automotive, highly electronics-related smartphones, shared that

so definitely our has that customers caused yet, of As they pace.

to like seen what long-term about time haven't and ideas they technologies. new take us, off develop We them have customers invest productive their capacity in. come long Much a to our build

already that happening economic the So, we a far, concerns so people are long-term see Most appetite. them. to haven't seen their in reduction

does it come it. the is, when getting for So to ready opposed out real as question

appropriately more So customers Opto, of experiencing will yes, really are going I'd far. to done customers able we quite animal with and of so quarter. inflation inflation, in be experienced our our year, experienced On we business saying increases with coming in approaching a that share we've we're that spirits that's good to say the the we share we our have Throughout actually base. being price -- job across this to some price, sort the go more

you do been to round the question latest that So, I'll so far, this successfully next ask tell me again we've went. and able how quarter, and

Samik question from And next Chatterjee will our JPMorgan. from come

on is as is, than you increase to change obviously in, you've need in outperforming I question you which any markets worsen willingness underlying for time, the any long been Wendell, most have past driver there a particularly mean, of given a you're sort had of is macro more the continue go But similar time, time the of expected. I macro inflation a well that at sort guess And of macro to participate content, at sort Corning macro. and a sort you, and pricing more Corning through. bit starting for is I the of end has challenging in that this been market. every same pushback next content I'm we seen cycles, down year to in seeing customer as to something into pass you just thinking in tougher, the

customers starting you negotiations? are those So hesitation well to from in any as see

Great question. Most of our deliver see. customers' that to cost our reduce More a function customer they Corning plays their tend to or improve vital ability

we're seeing a that their capability. So in reduction I'd macro, no, in not say,

good cloud-based a you on me Let players. give example

of for of connectivity our involve improved totally we able deliver So to latest on us quality of basically so time. say, and can that systems XX% save we materials installation set them engineered being the everything. months innovations We

give you saves in revenue more a to continuing is typical good angle it more money More we're time. for you like price, but And a of and us a so in That those. lot that adoption in us see lot total, Corning,

move is strategies. some improving strongly really continue offer to they Interesting their electronics happened that there just differing question. invest in Your There's seeing into clear is mobile consumer to attributes you that when the you're have customers. some winners product power who

innovations. some mobile and a But of other us. that with less battle consumer our our premium more sort key players, investing of in the electronics little lost have winners of in bit doing particularly in And total, are are China,

that -- So playing think More fundamental well, heartbeat. out still Corning strategy and is very strong [indiscernible]

It's playing still It's an unique. I interesting do out. understand is question. that question. So But the

Meta come Stanley. will from Marshall question next our from Morgan And

sense concentrated international? U.S. Inventories kind a seeing? more but this what it around Maybe Or second big to then me. that in use is just global couple on question asked providers? a the get circle cash Americas-based is of it, I or it's largely wanted said couple mostly service maybe within know first that was Optical. year. within of telcos, times, pretty a it's it for of we're And know just a but the I question just to a been of you have been

and major Just of what free QX targets. of that's help drivers sense of achieve if revert get to flow in with the -- that part to generation wanted a you to cash would expect

that -- First of America relatively are question, of involved. based, terms limited people right, North number the in and its

our enough. timing. based, refrain get customers North broadly, you from the , industry telco I So just of to more And talk America to think you'll see is can't almost we if just that all

and that's so timing still the heartbeat customers. and And still it's just that's backdrop, the key a few

And right. Meta, on you're inventory,

a able make thinking, fourth it in of reverse. into flow. mean there And drive that That's it You we we to sooner. been We've the I down it as are what built through to and it in reverse go need the happen slow see will XXXX. September few we're start of our higher. I can think why definitely and lot it's haven't inventory definitely quarter factors to sort that and we of one a it cash reasons

inflation that get price half we the to First the back and we of need little we the difficult, of inventory it right? been then lastly, So have down we're of make then so than chain and sales brought that sort itself catch hits we our have. in of carrying back a supply And year, we've just for we through. foremost, general, has inventory, as we just we up our forecast cost digest more that we we want in otherwise sure the bit us, inventory, a manifests the when raise can inventory and produced. the serve and as and to customers, sell might And little as that

that are goal factors bit a So And it yes, it little in up. our a is fourth down in get delay to the starting Those really the there's drive here that. quarter. of

from Susquehanna. And our Mehdi last Hosseini come from question will

period, the revenue XX% but I lower quick net your And insight were QX, that get with if income. fast your of better back given to are about that revenue Or reflection you're something I your would come go else XX% almost than an million to margin. to XXXX, to that revenues last $XX a offline? Display Is have just is averaged great. still were the If net volume, that late margin Just be time to less follow-up. a forward XXXX, declining, relatively helps it able the trends this the

question. Awesome

things the feel one right. display we correction. about that's So And during this first, you're of why execution I'd that our say good in

So what that. technology through seeing been do cost improvement come performance and outstanding with productivity that that that all you're tremendous to the able brings our new we've is in

period time So prices of of with a being long up. stable to

technology be as see we performance about and pricing, to stable very a been excited profitability. has our we've be is correction this the to position it's cost and drive drive up one to over to trying thing Display. And the and up continue that we the strategy build to beautiful things glass we're to our these strength start because lever when incrementals our Display our demand so our of go do move up stable -- a Very in then market And will and powerful time the That and what through been in big market use period. behold.

thanks, Mehdi Thanks, and Wendell.

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