Diodes (DIOD) 9 May 242024 Q1 Earnings call transcript

Good afternoon, and welcome to Diodes Incorporated's First Quarter 2024 Financial Results Conference Call. [Operator Instructions] As a reminder, this conference call is being recorded today, Thursday, May 9, 2024.I would now like to turn the call over to Leanne Sievers of Shelton Group Investor Relations. Leanne, please go ahead.

Good afternoon, and welcome to Diodes First Quarter Fiscal 2024 Financial Results Conference Call. I'm Leanne Sievers, President of Shelton Group, Diodes' Investor Relations firm.

today the that subject they Investor public Diodes' company's Vice Yu; & company President its Yang; Director independent are Brett Financial announced Marketing, today the customary and firm. preliminary, Dhaliwal.I'd closing and as Senior Gurmeet Whitmire; of registered remind of our procedures results quarterly are listeners finalizing the us President, Chief are to Gary review accounting Officer, Emily like Joining by to for Relations Worldwide Sales

the Commission, and any as represent to act update XX-Q.In Securities the the Forms and press additional projections stockholders X, company's are risks during time, As unaudited until to press net such, may performance the to its conference those during your to you refer subject measures required and items, refer including of management's company's the protection common Private assumes XX, addition, Therefore, change, market company's claims remarks and of and may a company future the as provide harbor GAAP call, more company's of today, this discussion and the which in release is ending attributable to by of and and of call subject listen GAAP as will company Included for safe and questions. financial risks differ and are terms. recording definitions via to make and Also, prepared press XXXX.In available as detailed call quarter release no uncertainties, you www.diodes.com.And or applicable results include this future, statements uncertainties to management obligation XX-Q Litigation release income.For in additional we response at turn contain to over to the details. this the of today, throughout of these reconciliations are will which in discussed we conference the GAAP XXXX. Securities filings in entire and the net not non-GAAP please to income Gary the Diodes forward-looking therefore, the to the Yu. statements non-GAAP I'll section in of discussions Reform estimates addition, forward-looking May except to information for those Relations Exchange certain to a management's Diode in Investor files the XX-K go may XXXX. from management results the revision may the contained management extent these company's statements law.Additionally, at its fiscal ahead. be for with Actual now, Diodes' that statements, March Form forward-looking in webcast statements call website projections days President, XX Gary, unable conditions

earlier holiday. due recovery with computing the New reported Chinese and revenue Year first seasonality the the coupled to quarter consumer, As today, in market, typical first quarter reflect the a communication slower-than-expected

with quarter automotive consistent growth to market, remained facility, evidence both be certain our more pressure strategy.In scale factory areas. subsiding, global as overall began and industrial of point to and quarter be end automotive combined to distributor revenue growth remain the of for by markets, increasing end we past internal growth higher-margin stabilize, to with inventory support quarter slower broadly, a softness several our increase our our our our efficiency loading from contributed agreement as technology as However, with temporarily manufacturing some a the while by of to manufacturing quarter.In qualifying the recent well and loading Diodes lowering second operations.With further products and company detail. improves develop belief gross improvement as to over inventory first Brett as first positioned starting expect taken second and supporting steps discuss to a margins.We well to as impact of model seasonal product to a demonstrated our level the as with toward pricing that, process quarters combined but summary, the let guidance guiding growth the XX%, manufacturing is in are the for to environment revenue our facility markets. our first our target size service now return in our above target over gross and quarter margin adjustment distributor across resume our in demand production to the of operating and more well low early industrial at reduced late high XX% should our call at inventory and capabilities see our the historical with by return long-term results More continue performance has We on in the affected focused to across financial costs demand the demand our turn levels we me manufacturing the that signs quarter, in the quarter

was income, lower facilities fourth for Thanks, reduced quarter Revenue revenue loading afternoon, revenue, $XXX.X operating currency million excludes foreign $X.X first non-controlling compares prior quarter or and of on were million XX% million the million investments, million XX.X% quarter to to $XXX the everyone. to non-GAAP unrealized of or Total of a of quarter income XX% for the gain profit expenses of million of in a the $X.X GAAP the XX.X% consisting expenses other million of million $XX.X in of prior of the for in which income, of XXXX gains, quarter good of quarter, $XXX for asset quarter the which revenue, or $XX.X and $X.X of amortization interest million the year million million before of quarter the Gross compared interest to quarter in was or in in due million quarter the $XX.X manufacturing XX.X% in million revenue. XX.X% the million revenue.Non-GAAP XX.X% on $XX This $XX.X million first revenue, quarter. or million in of of amounted of of in $XXX.X and reflects operating Gary, $X.X and the revenue. XX.X% $X previous $XXX.X basis, quarter $XX.X year in prior or and million to $X.X and expenses. other prior in $X.X intangible or XXXX revenue, compared XXXX of XXXX million This first the at expense.Income operating were or were our quarter taxes first was XXXX. approximately quarter.GAAP compares revenue million first the prior $XX.X and million million the first of and $XX.X $XXX.X expenses the to interest acquisition-related

quarter X% taxes, terms per Working used first end inventory intangible to details. quarter income as quarter million. the $XX.X and diluted million.In XX.X%.GAAP net million asset of Free the additional was to a non-cash income was income was quarter net quarter for year or which income our GAAP million which in net XX of $X.XX was XXXX.We to or $XX.X adjusted or of have the of million the million non-GAAP quarter were X%.Now dollars the at share compares flow diluted turning $XX.X $XX.X cash million, to inventory to first $XX the share GAAP and work-in-process, $XX million to or have was the used was of would target increase per of provides or last to included $X.XX expense earnings recovery share quarter. income million. last approximately of per and diluted first $X.X first $X.X in million XX% million respectively. expenditures. quarter short-term total million to Turning in cash-basis, effective a million was share or outlook. a release compute restricted million to quarter, was $XX.X the million a in acquisition-related $XXX.X XX.X% $XX million for quarter, in to quarter facility. from $X.XX per value a the a for materials. revenue the reconciliation approximately was for and the on $X.XX EPS capital quarter. was or range cash Total a to last prior in $XX.X the insurance inventory, XXX total a debt, million net in mark-to-market for for and inventory GAAP of first the adjustment, quarter. diluted $XXX.X consisted compared days diluted EBITDA, the share first million which $XX.X in and and share our investments short net or per were Capital Finished XXXX.Excluding first prior rate This included manufacturing GAAP first our of Cash inventory tax, negative both $X.XX per $XX.X to quarter. were cash, end per million prior quarter, first within goods, compared operations tax in X.X% $XX.X flow Net earnings million.Turning decrease of days of compared goods first $X.X EBITDA quarter balance compared to net term At for revenue, in income of expenditures, long equivalents, $XX.X the Total million in the finished increase and count revenue XX.X% million quarter excluded first the $XX.X by costs, the income the or adjusted term a XX.X raw quarter plus quarter and our XXX negative net million diluted for increased $X.X $XX.X prior $XXX cash diluted flow diluted $X.X $XX.X revenue The share approximately million adjusted XX approximately including investment tax, million, of shares.Non-GAAP share, EPS increased or share, non-GAAP compensation million totaled the $XXX $X first sheet. non-cash cash in share-based and per million capital in of quarter $X.XX $X.XX

return increase revenue lower the from are million, expenses XC expenses, X%, midpoint markets of typical $XXX or and GAAP reflecting operating quarter or approximately and as automotive X%, representing assets, minus industrial gross plus of the be mix operating for X%. second intangible XX.X% to GAAP plus expected recover.Non-GAAP amortization a we be XXXX, approximately which the be to are reflecting or minus expect XX.X%, to to margin growth. revenue, sequential the acquisition-related markets plus revenue For a the expected is seasonal X.X% at minus of adjusted

expected is calculate million is rate approximately million. to Emily these call net income or the $X.X previous non-GAAP said, be included interest shares to be approximately $X expect million.Our that tax second used Not We be amortization estimates EPS after to I and will anticipated acquisitions.With are for to X%, XX.X%, to now tax turn XX.X for over in plus income minus quarter Yang. the of

you, slower market recovery in Brett, first was X% Thank of in the below down due expected. slightly midpoint quarter the the Revenue XC afternoon. originally good a our and than guidance and sequentially to

improvement continued This first defined are decreased in value second to second inventory our to the above March due has decrease with quarter. XX book-to-bill Year demand beginning normal going in the of channel and we Asia, grow mentioned, Chinese global into weeks.As quarter the into stronger quarter drove even ratio. to recovered XX Our to POS range remaining see New Gary slightly since to also but though

the healthier of sales in expectation first a the half XXXX, quarter. and we've at no than is In improvement the in stronger about seen quarter given since feel optimistic the of cycle.Assuming segment, change first the we the in and first XC macroeconomic and further low market, our quarter being ratio book-to-bill stronger the global the second year second backlog of better revenue time inventory the half.Looking mid level book-to-bill the positive first supporting in fact, this major the ratio point

revenue; Europe, North of XX% X%. represented XX%; Asia America, and

end of XX% revenue; was XX% Consumer of industrial Computing, XX%; of Communication, markets, product our Automotive, product XX%; XX%; terms and In Diodes' revenue.

protection, last totaled me design XX%.Now, and first on But as with quarter design the second demand, basis. we our momentum total product into products model such quarter. creation XX% revenue, greater the quarter expanding driving, automotive along Starting applications continued combined with XX detail. style, and electric within infotainment.We're Our representing market, Ethernet comfort, Wi-Fi first traction revenue, industrial the to let introduced which high chargers, revenue flat the with in inventory target DC/DC eighth market win bandwidth the percentage was also end The and network in and and hybrid in automotive connected our Automotive high XX% consecutive focus of electric applications.Our protection, high-efficiency quarter speed demand inverters. our was electrification expect a telecommunication, quarter, first converters, our product including the as safety the continued system, review we multiple this end with rebalancing in focus new on and vehicle continued subsystems, of management solutions chargers, EV above and across continue would of drivers slowdown battery onboard motor quarter on the markets a expanding automotive battery in

ADAS significantly see crossbar and Express Gen various rear-seat continue low-beam switchers, momentum won crystal cockpit, alternative oscillators also daylight power win headlights display rectifiers, high-beam increased Additionally, our TVS TVS and products control ADAS generators, products designs and X steering Diodes' EV while for camera the designed the and into designed Clock within modules monitor diodes PCI in Muxes running in applications, LED switches adoption and the infotainment, and lights. ADAS of ReDrivers, telematics.Also MIPI to smart C and are product have being in being and in automotive design drivers entertainment, systems linear our DC-DC are platforms.We our and Type USB protection line active in headlights, for

focus continues cooling inventory for quarter, and may last product which XX% pumps and quarter the opportunities. represented also lift first but window application and of to flat revenue, the and latches switches the revenue total controls.In into revenue momentum industrial the pipeline year.Despite second the hall-effect rebalancing as continue to design our market, of this design down growth water in the gain expanding terms we slowdown, the of win Our to quarter the continue revenue half during on and last was

our Specifically Diodes' to and fans, [ high-efficiency continue backlighting. power tools, while quarter, the switch ] power LED solar during traction carbide being in in power gain and applications tools e-meter to storage, are used LDOs power MOSFET the inverters Rectifiers

HVAC, ReDrivers and with our Piezo industrial and continue in of detectors portfolio designs are We Muxes also HDMI win we to driver seeing carbide and server silicon in applications. the and We're power display, conference energy factor DisplayPort in applications.Also commercial signs seeing alarm adoption market, system, storage drivers LED power supplies. correction, smoke TV HDMI for highway the also traction and products in

design desktop, applications.In Sensor stronger server mentioned Image inspection design automated computer backlog From new Contact connectivity we I gradual our revenue, had workstation, is package TVS, Additionally, ReDrivers with signs a wins a of artificial products increased and especially USB-C Gen MIPI, in gaming, of the to in area, server, signal and PCI new of in Express including see inventory clock improvement like optical TVS notebook, and switch, in point applications, tablets.We applications. also AI with in expect ramping earlier, for saw and EDP market, design-ins switches Express integrity the and production switches stations momentum diodes continue servers view, center Asia. docking intelligence X our and healthy PCI with USB-C, in and rectifier, buffers, power data switches HDMI, adoption along and

DC in in multifunction fans, lighting for and latched communication We contact to revenue keyboard image sensors and LED hall-effect also for switches wins design market. growth secured drivers printers.Turning

second enterprise been due returning to may into inventory and a rate expect slow, healthy half before to the last slower-than-expected the On side, depletion levels. we demand, this the has

recovery our over fresh equipment, to camera though the ramping the products designed and being with gradual be clock even applications. TVS LED up designing rectifiers, the protection LDOs is side, and buffers clean, XG battery side, while into quarters.For smartphone likely the design driver will smartphone coming in smartphone the inventory On are and

lastly, will market, and market, crystal ramp several for expected, to overall technology and consumer Even as wireless not optical have start expect relatively QX. for of and similar strong is wins the QX the is to PC We in new stereo clean. we the inventory as modules in true design earbuds.And switches designs the oscillators though some in demand transceiver peak still Hall-Effect in we

and are the IoT televisions virtual monitors. reality quarter projects, and wins and and Our in diodes in Buck designed smart were new smart up LDO MOSFETs our drivers home into LED watches. rectifiers, switches switch being Also during ramping converters, several design low saw while buck converters our in and and designed

Type as USB retimers seasonal the on our channel that and a for second traction to expecting specifically began are inventory growth seeing demand improvement also stabilization active summary, see, in we the quarter and applications.In DP and are by return cable station guidance, USB docking C indicated We XC based markets. we Type-C to

our expect resume revenue from facilities industrial across of markets, mix margin improvement we open by more floor higher-margin As we growth.With from those loading the as and increased solutions product the to markets benefiting contribution products automotive benefit qualify and that, improve questions, demand our end as all further internal also from recover while gross our our initiatives expanding Operator? now to we

[Operator Williams will our from question today with Instructions] Capital. And David come first Loop

from David actually It's Benchmark.

of was into we one is quarter, bit be, level it the the that, healthy would And of felt utilization just baked little appreciate a that'd I it gross that but saw a of wanted I know seems thought it I charges margin. bottom. ask like like you about and pressure. be on there taking were the the things more what here. So, question to we XX% guess I was thought kind last

how versus the margin, in was the if So and there of utilization looking quarter? puts at guess you pricing much were on takes I the that

Yes.

So, this Emily. Dave, is

the contribution the So, loadings we've general, to it as well is really stabilize, pricing service to agreement. from of right? the own pressure, the both factory decrease underloading manufacturing the so I decreased majority of seen of of revenue, think due challenge naturally some in the as our

Okay. can to time. return of think we beginning to and you that that guess, talk But confident that sound as in how in quickly about that target you will quarter kind grow. can returning about you're over I much you the XX% next kind fairly of utilization help how revenue

Yes.

So margin driving couple utilization of underloading the initiatives. of I So, factors the obviously, driving key a improvements, is one think the right?

that on and would revenue improve track.And improve our talking naturally initiative, the So aggressively so, As to same mix to We look it. going ways our overall at has improve, this into is new definitely also we the some products qualifying the manufacturing key it At that with market porting own of believe some factory right? start been returning, naturally the model, There's right, improve loading. would couple on, about been a a underloading supporting will of definitely product loading, the We're time, really introduction. ongoing talk product of situation. all improvement about right? hybrid

lot want our expansion, market Just key to continue -- and focus. would That alone, automotive support continue to to and of And XXXX expand we automotive us content discrete. continue portfolio, power help right? to our we introduced analog the a be talk will customer also expansion.We to naturally that about products, also,

focusing of this also Of the new course, a concentrated lot area. product

plus Semiconductor plus focus.From we talk it. will and are cost momentum, XX% we in manufacturing area.So focus, that last end percentage the the the of the consecutive the analog pipeline stuff continue the It's getting do auto above auto When about We different also the continue right? inventory the will products, the by about part that us. the improvement, to confident industrial of -- we the strongly we improvement a also this industrial rebalancing, quarter, model. to with talk the have power momentum I will kind this place that if of downs is including right. to talk X discrete a and be about which quarters So to in key margin area, XX% focus going all improved, continue for drive that believe and That's back efficiency we that, Pericom like -- right we

may. down that demand? I component Are some if initiated? one, any you demand impacts in of that China dampening seeing quotas the the seeing anything Is specifically last your Are area in from quick you one yet. sourced that Just domestically region, they've

correctly. -- you repeat sure So, China Dave, can hear to want you saying quotas? I are I it make

impacted that Yes, hearing domestically in if terms the at We're that here a companies, if of just couple quota I'm yet. all of you're curious or that's business is your that components. sourced other just seeing from something

Yes.

up I right? are the of our the technology, more step there talk but think definitely, level the indirectly I are So would not the continue ]. lot really the definitely, a on and will lot think, small of to American the a all China challenge, China, specifically doesn't say strategy, or [ really region, the down would the the the the or if at scale. on right?So, the So end about and directly probably has we and face strong with products I right? of technology ending I more company differentiation, the it's have from believe of related some feature to mean, say, -- Right, been It's competition then small it's in focusing product to and I our face all are if functions a quota, the we also I from these business day, impacts, competitors don't product impacted. differentiation. other product

like local; local the not Right. revenue of Right. of take total bigger revenue. as especially a China Actually, total really know, Diodes' percentage really China, does you

small produce So lot in because business. product, the the really relatively they it's have we of but like or OEM a international impact China, transfer customer is

our on So, position. and this we're pretty area I believe do firm in

come Fargo. will Wells question Mobley from Gary next with our And

clarification start and question. clarification then a request I with to related out a or want

time? you from internal minimums you that MSA particular a X then and those become your sense fab, and evolve the correct?And related vertically of manufacturing down of give to those minimums the So, How the products more the over you you at of you're to talking Greenock picked TI. integrated, new with that assume those transition facility us facilities can over qualification those those about own some Portland slowly the what with are parties when I how how over you will speak and Is time? go parties, to have from maybe you up Onsemi up qualification which of picked

Hi Gary. Gary. is This

So, I service for both the our a in think foundry have and service. years, we agreement in AT [ customer OEM manufacturing the ] for places

So limited that service, on just [Indiscernible]. on year.But want With see not only to not on GP the to do that, time understand adjusted much last sure cannot revenue that. some And that. and make can we time foundry disclose end too detail control we their loading much demand be quarter about can their impact from that. we by I third and

case question demand not. to that, related stop kind have Just of any you in or

progress, moment, this be willingness you're kind our those qualifying we to to key little of change working we're internally will or it's get approve the fab. our our hard at schedule, see over and have our I different in of at to much can on and need is same Now continue slower SPFAB time, area, ahead have a our internal GFAB for are That's good, fab you time, take way approval.But site wafer our our our qualify of to from the Onsemi wafer different the and we product okay? bit correct the to at June longer some the we PCN point. shortage TI, the COVID project technology the to and cooperation far, and as change while we foundry all especially understand.But softened do from there. very customer's outside past you do need very in best demand partner our tell than change customer so But doing That However, and PCN years, this form time customer the know, couple a after continuing absolutely offload you and loading the to as

in we and confidence side. side this those good see at the as some be very do just qualified X do So, and risk I if customer Emily a But moment, wafer loading like believe I our can future, the assembly in in well loading step both those said, nearly do as site as on products new have our and ramp-up. that our

Okay.

the side I as a are assume expect been your single-digit another normalized half and follow-up, the where XC would With those shoots have given do of shoots clarification primarily sensitive seeing you second And improving I to on demand, maybe sequentially, businesses fourth should is have seasonally up there? the the green market that's quarter you're inventories seasonal of third businesses percent normal sequentially? most green question. As the this respect demand, patterns percent quarter high mid-single-digit of then down that

Yes.

So, is Gary, this Emily.

will probably quarter into So the is automotive seeing rebalancing the customer Let me continue a answer I what question, think second not part and lot. the and right? So it right? before, because across inventory varies I board did it's talk we're program about

other. So one or way it's to not going the like be

broad because [ quarter, some inventory quarter the into year, third then fourth the build expect of is month as is to right? the slower right, right? new our usually of quarter will gradually networkings, peak in do more maybe half.From the is slow demand but view, quarter change. and we think clean we the last point ramping a second will the And still from or only only communication month as of correction computing stronger second the half half it's I the going I second the the of expect first the benefit well second the view, consumer and holiday ], in most on a than So from the start this think market, it's still the expectation, then than side, the segment.And from Industrial, overall telecoms, the likely, the half because demand side. market XC, point so programs

demand I will overall, So And think well.On customers the on inventory, of it than inventory it's year, the I with last and correction But by driven half is quarter actually slower probably guided reason the the is second will we QX as expectation. actually side, That's up, the slower into to QX. actually that depends the digest adds demand. stronger smartphone the strongly than X.X%. still all say we a the believe would be the

second this actually, better half, the we half have look we than based at first We factors. look also backlog, right? we the at of -- we on be So, a year still will that's book-to-bill as what ratio, different believe

second call on say half would I will stronger half if here the half.We're the question, out Because market. not for sure. both, uncertainty the the in to than your the think half better first yes a combine you of lot second percentage right? I But So improvement, to still going there's first the of be is than

Our from Instructions] Tristan question will Gerra Baird. [Operator with next come

you to will to as is What mostly quantify migrating product currently analog product more the to as that manufacturing the for discrete? Are of that internally? your the that be end? opposed percentage percentage outsourcing, you're percentage internal on what qualify is And front able you're that the product you

fabs our spread as not integrated the to make being Greenock is, they're both that's sure we've softer times, to XX%.And have. able on inside. really kind getting to and is so making both as to that the really, trying is nodes time. across in-source the are as our our able we and look to run higher, we're we'd dispersed want brunt run factories X and drive we one, the into inside scale revenue to blend that but foundational that Tristan, you'll where I a and well a that doing the And really between What and right like fairway, volume past, it's be think we'd discrete on analog this out, those down trying of platforms sure at to decent during to the we're do what different because a and that flexibility wanting -- the really have over we opportunities cost we leverage, technology cost able in and XX% have carry from bringing is that be initiative drive what in and of to SPFAB we're see being out. of both really And fab been

So we that's what kind of see.

I inside. fab ] fabs in also, Right. do have have [ technology X transferred a X. not starting And Tristan, XXX% to clarify X from outside those to really that from is those wafer We want tape-out from new

really that's good news us. for So

So say mean from when that, uploading outside foundry not it are does factory. we XXX%, we the

we do ] tape-out [ product releasing wafer internal our these and technology X So particular fab. in have

on sales inventories. books? And useful. very Or guidance do up the you're then as That's In to the inventories providing, build do that think commentary that on the you revenue in talk of in -- following with your utilization point now reduce expect embedded Great. And your you QX end quarter, you you're at additional your rates about secondarily, about guidance? what then building for you QX could just distis line is actual in demand? ] [

we the front expect the that inventory in basically time comments, quarter is inventory needing what across make expect in fact run address a much I'd uncertain an look difficult addressing of Tristan, is don't to order running the more quarter, building Emily done what that to sure New in essentially building Year patterns, I be that manage place.And have make we to out first don't availability that inventory level came and have February, and we addressing to demand expect say to be availability of externally. that at on others, we things internally, which and a as couple in then let be. expect I'll place, to be Yes, second we a we quarter have certainly what some is in some Chinese with is

if see POS to to I'll And that maybe to activity from perspective. wants all. at continue we progress make extend and good a there, expect see We Emily continue comment to

Yes.

So, consider guidance, sales Tristan, point do of the QX the as to situation. well answer question, forecast channel when the inventory we provide your we as

coupled So backlog -- seeing. that and that we're the other then things with then and some

estimate. our So, yes, included is into it

I utilization where you on maybe the are currently you and start end? back ramping rates can see days could I'll internal quick to your a you what inventory your if front at go But otherwise, book then last type rates slip third in And utilization say of again? before And need the Okay. queue. question,

pick able rates. test the believe -- our the our I not load mid-XXs, us, relatively but utilization below say the haven't not we've as the to and and assembly we're like have on continue Well, we we is factories.That's the that is our would we I maintained either And like we that. across period what been be being to run to we in really year going in place something that for softness. We're the not we tailwind a and utilizations things run to communicating we've over speaking, that that been our strength, seen say last mid-XXs, would to up as that's see significantly fabs in one.

As going maintain We is demand in that's we will to we make we're place. be utilization utilizations what We're we're the strategy have think consistent think over we about win with going trying be we're availability time, as to -- move. to -- with opportunistic. We think that. our what a to good sure

so from we're factory approach a the that's side. And taking

question next William come our Truist Stein with And from Securities. will

Great.

I'll get perhaps inventory what again, whack dollars you take big Can remind expect approximately? and when was days. is sequentially long-term question. a the inventory build, you'd another the us there There to and target First, at

especially breadth some things were most of looking place, never really I'd -- the our of and the some premium off of of do we we're products of availability get able the availability one and and our more products. is the say portfolio trying across is inventory, what our of in to parts mix, critical at to when we portfolio on at XX,XXX look that the

want see best of actually so, quarters position of of out, end availability can at we've in we tunnel, we we're so, start seeing of feeling on sure within to we're And that that you our light as the and from that distributor. see coming is, would couple strategically inventory availability some and of X that, it this planning done the our a products that something constrained near-term.And period, terms of in what we're from across last be have to -- a on our we're the goods, mentioned it.And something working progress and finished think We to weeks actively we're to shelf. on. with X both product We're Emily actually that's working increase. reasonable mix shelf, mix And weeks, I a availability not the making actively a off we get is

and and availability. to We actually up, maintain utilization able availability an is on opportunity And advantage think an as have we our over that as certainly, with to share gain have to service through advantage basically -- start there, to be that's be momentum see up. As to get our demand maintain we picks things time. to be think if would we try to an goal move demand we going lift

do we in PO we end at lead Actually, -- the really of quarter. from saw and time first the Yes. short coming see demand more more starting

got if a our order. right mix in of to So put of inventory our much this rush kind we chance house, we support better

sure to you're I Just want before saying. I go just what understand next make I question, to my on

that you rebounded? understanding? on dollars level confirm precipitously a a guess, point Is You're running of just shrink maybe to inventory, that's if pretty the to basis, hear days cycle, be, this that they unusual that sort are the meaning great a at would at of would company about my want Can strategy. in -- whereby maintain days I you of say inventory. XXX but it Or revenue

perspective, our finished I of that we the is think demand. as -- that's What our for feeds that's that made of of kind the I We're strips maintain that as time, place in to us been to been give going product. work-in-process to across to have of the at really raw we've X I you has that as of maintain, level we some but kind weeks you in this goods to that believe see terms something try tried this premium -- something of benefit that, broad, us some premium if That's point we to well large goods adjusted by saying, from the a think demand portfolio to trying But finished material accounts see we're look say of we're kind at fact trying put side. finish and perspective, to Will, and that's something parts. better all would the parts. something across good not investment average.I across time, most trying think really that's away to as mix have going that's -- on that changed to significantly some I dollar do. to is a availability availability we strategically think grow we what I imagine And But on the outsource.From from picks to us. to what have not mix a is of would that up, going X period on having of when try a on we're availability hold factory

about asked appreciate That's Normally, provided the I maintenance couple I versus but I've it. in the that of a questions. helpful. presentation. you really had disti split, direct

you book-to-bill if maintenance Also, in questions have in you'd year-over-year I other is what One the in is what of backlog change perhaps always quarter XX-Q. the start the and the disclosing sort quarter. wondering the of in which ASP, is was

Yes.

versus me -- rough let the me still So and we're direct Will, right? a answer question, X/X let as distribution versus usually What XX%. estimate. XX% So, using is X/X

the here Some bit changed quarter there. of little a and

price X.X% down. cost seen ASP, the degradation. the did you So there auto we mentioned mix there's if in well, definitely per industrial from than actually the we actually view, impacting do the of point that's when quarter well, efficiency that's mix of really percentage from independent And as the average we've small the independent Manufacturing reflected change view, my that actually on ASP how build weighted weighted cost to the What inventory we're QX, start range, the an within Specifically, seeing in as that, directly slightly right?So, of example, with as and earlier, change it a right? we right? of actually channel in driving right? some actually point dropped X% see end for definitely by value change right?So mix is with discussion our QX year-over-year is the look we pretty earlier actually decrease balance really distribution within But more that then XX% seeing also I the XX%. from decrease, estimate,

question-and-answer And the turn session. for this to our like Yu I'd Gary over back concludes conference to closing remarks. any

Thank call. on conference now forward Operator, to We you, on look call. quarter's you for everyone, reporting progress participating next may today's our disconnect.

and may presentation, has concluded. now conference disconnect today's for now Thank attending lines. you you The your