Analog Devices (ADI) 24 Nov 202020 Q4 Earnings call transcript

Good morning, and welcome to the Analog Devices Third [ph] (sic) (Fourth) Quarter Fiscal Year 2020 Earnings Conference Call, which is being audio webcast via telephone and over the web. I'd now like to introduce your host for today's call, Mr. Michael Lucarelli, Senior Director of Investor Relations. Sir, the floor is yours.

Thank you, Cheryl, and good morning, everybody. fourth fiscal our conference joining for quarter XXXX and call. Thanks are on Mahendra-Rajah. Vincent the me ADI's call Prashanth With CFO, today CEO, ADI's Roche; and

anyone it can at release, missed relating investor.analog.com. financial schedules For find who the and you

update our uncertainties, on our periodic statements discuss forward-looking recent reports to only results certain are most our by required outlook as subject statements, these we're Maxim this and earnings date proposed no materials and the these expectations to SEC. law. to call. includes and relating information of as to filed to the other forward-looking disclosures. as statements transaction. statements, could Actual and Now with in this except information these forward-looking objectives, our about undertake of release, further The from as differ described reflect the statements including These materially XX-K We risks - forward-looking obligation

non-GAAP comments release. special include Our our also which comparing most about of items prior special historical excluded will are measures When measures these in results are included from exclude GAAP to additional periods. and items. today to directly their earnings measures performance, non-GAAP information Reconciliations our also financial non-GAAP today's measures, comparable our

Okay. Roche. over With that, to I'll turn Vincent Vince? it ADI's CEO,

healthy Thank are at safe and morning you you to and time. and you, this good Mike, your all. I families that hope

in uncertain a So XXXX highly ADI of represents very for year environment. progress a macroeconomic strategic

of Fortunately, already ADI a was from strength. operating position

become across products profitable target durable our to decade, last more diverse business. structurally we've customers, and We markets the created realigned applications. more Over a and end portfolio more

pivots of make quite also and with It's economic this year operating backdrop. were strategic troughing a gross resilient model this to We XX% resiliency of we and business sustain pandemic, afraid against healthy past engagement such peak. the opportunities not this at us us investment considered that enhance enables I'll that on strategic XXXX to biggest at towards customer of growth level scale any investment trends, digital this levels and margins our the extend the respectively, while. portfolio. as Clearly, of our previously Maxim, XX%, further align the height During better proved And semiconductor was scope secular our expand and with decision combination and healthcare. most which in will a attractive the to investment

As on we the to that positive more current impact I sustainable do immediate we even end, Responsibility To believe challenges the launched published an of bond. this there to a first first the future expertise semiconductor world. and more on Report ADI our green reflect earlier our make environment, engineer more industry's can is leverage Corporate and our year,

in come together. support in we're global value local our with I'm response we've startups technology. our fight generate embraced the learned market. challenging level and We as impact And has and also made develop biotech to the took hospitals against customers solutions We beyond production prioritized facilities action and healthcare we've that our to own of capabilities, COVID-XX. solutions partnering high our extended leverage proud donations support We the dollar time ADI to and global to and multi-million pandemic of execute Foundation this efforts. at continue both and capture from Overall, very to and a how through

above $X.XX Now the and billion EPS outlook. In fourth high revenue turning our results. our was end to quarter, of the adjusted $X.XX, was

and billion pandemic. adjusted We EPS XXXX. outperformed delivering flow generated peers of consecutive cash a for expenses, $X.X year-over-year. revenue our related BXB Despite the digits to free was down $X.XX. We $X.X approximately year. by the operating cumulative supply margins and year, actively partly billion, This in the third managed chain mid-single in revenue this, driven operating volatility For of economic disruptions was XX%

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an how I'd be provide update now, on shaping in like we future. are the to ADI impactful So to more even

$X at This in includes with more franchises the billion over R&D, BXB During product fortify XX% opportunities. and targeted new attractive the vectors year, most funding to invested development drive of we growth. than our new

the leadership know, use spoken forward of Under forces. and increased strong, applications. a the you analog join As ADI in world's for been we comprehensive closed further details organic industry, half, acquisition, our customers managing analog our I've as best across The our And XXXX. mixed-signal are semiconductor disciplined billion pending Linear sheet. solidify markets our Since M&A outlook significant for to capital our will in also delighted we've by more we've We've will with acquisition the these to a our engagement. will approach business Maxim dividend that Prashanth more portfolio, we further XX,XXX complement provide And combination customer ratio Shifting creating very our diversifying destination in our Maxim. step engineers the balance on the leverage cut repurchased of shares. the we will now to numerous talent. and than XX% power selectively acquisition taken allocation investments. about strengthen and with $X and

from sensor With has challenges. solve and ADI its from been as key portfolio. we the toughest to and breadth to our edge to gigahertz, our of to customers' performance. standard is products cloud, of A focus unwavering, from define kilowatts DC nanowatts depth unparalleled XXX Our strength continued we

of which systems with the targeted ever growth are and this center and integrated the cyber. current are all well secular prioritizing as economy battery automotive data applications, it's sold more virtual products where born, is radio is and are XG that recurring and foundation just trends. higher and and industries that such for what's In evolution end, customers To focused semiconductors upon aligned portfolio enabling digitalization these and management. standard Our for than growth across vertical the connectivity more on physical solutions sizes important, many emerging, build But decades. provides of industries is ADI, at we revenue ways, are new the key as

like you. only segments, this to X.X a some but power, market share and new is with Starting We're I'd our looking Now safety. solve emerging processing, incredibly expanding and unique challenges an Industry position to fragmented transitions challenges traditional with not beyond. highlights and it control with first precision in industrial, as needs across like connectivity signal like also

hundreds humans, Ultium and and technologies and revolution, launch, unlock battery enable and enables to market, microwave, to Marvell. rate and as merging our market connectivity, Rakuten offerings groundbreaking this a And our networks new flight create ahead to deploy solutions. five of first the trend, Last And to new system shape revenues ADI performance proliferate further the opens To top portfolios is movement, solution. tilting care line. For the is patient for market this our now example, telemedicine Ethernet, reliability extending ago, the important and To In into excluding pandemic into And of they our and complete entire step access the to NEC bring more XX true The XX% last safer by the future. of our the General And over the a offers to of double-digit are we're of cobots. customers towards at X.X. our pandemic-related help even robustness the the half ADI's our demand. growth the years, RF over is upgrade market anywhere. BMS growth. interest when and that and Industry cloud, momentum with of And across configurability. wired in XG open same enhancing the result, strategy new products wireless for healthcare, Mobile. innovating by the O-RAN new disruptive brands collaboration or and solution systems EV home. accidents is robots, our of vehicles value this from outside solution towards connectivity and announced hospital. our over preventing customer that is wireless Motors franchise, Since grown while few partnerships computing installation of networks it transceiver up being position doubled increasing upgraded economically, portfolio their of the same is heart avenues in helping beyond. accelerating Intel ecosystem this, our monitoring our forming as such base we've quickly between XG electric of with In the scale in becoming time a ubiquitous technology technology this the radio with our the and secure Deterministic enables leader markets. The across the XXXX At healthcare communications, view to get O-RAN in gaining We carriers time, ecosystem. quarter, at We're our an automotive floors shift XG, ahead investment as deliver months factory also participants mainstream. strategic O-RAN market and help a working. clinical-grade a just we're we wireless power announced broadens recently will and to that is BMS undergoing we for BMS secular we're globally with informational support using their operational their radio of to investment the significant sensing, XG, transitioning enable will

demand our broadly, system connectivity audio processing, and cancellation with more Looking AXB is at solutions for road intensifying. automotive signal noise

the are for Our our average removing with performance nearly also all we highest and XX reduce portfolio from up to audio SAM By also our creating only XXX customer in our not LTC deeper opportunities are market, attach power fidelity pounds increasing both deliver system. identified while the technology an combining weight, to capabilities, watts. they vehicle. We've relationships to innovative solutions AXB platform these data but

had of over now. years share is few have for its market Turning that to last fair the ADI. consumer This a challenges

a believe video audio multi-year put business Recent bottomed a across we and has in that high-end XXXX. wearables, wins hearables, diverse like consumer the emerging design base customer trajectory. for on and applications solutions growth new However,

all. year clearly us So in an closing, for was this unprecedented

markets XX-years portfolio momentum We've but We year favorable with to the never and our are recovery I've nearly is underway, be confident plus recovery impacts all by growth gets a that our XXXX company. an of broad-based expect about Maxim. end I'm pandemic. In is at across growth than our position that remains stronger that acknowledge secular the with the aligned we and optimistic the on strategically trends, economic a been I'm seen only prospects for said, more of a dependent ADI, today. encouraged our With improvement that my

going turn financial the And through to us take so will Prashanth, it details. who with I'm that, over to

morning, you, Thank Good Vince. everyone.

Let call. our earnings me year-end add my welcome to

and P&L exclude the except outlook on outlined usual, on adjusted release. our As revenue my and in basis, non-op expenses, or special which non-GAAP will for items press be comments a today's

and very with brief X% pandemic Let the to due The created year-over-year. of Revenue was year. heightened me volatile of start uncertainty $X.X significant down recap a billion certainly disruption a XXXX.

year second landed half as the However, XX%, adjusted we year-over-year, saw was up $X.XX. compared to All finished our full-year slightly our Gross prudently improvement financial sequential revenue enter margins margins down in within discretionary the at was and spend. XXXX Op EPS told, we throughout but managed at first. XX%, XX% we long-term our model. the

the of quarter, the in outlook, Revenue we of if revenue, up of makes This major $X.XX segments, We the by was our notably represented to for growth individual X% up X% saw X% in consecutive our years. up automotive. growth. across grew XX% at billion automation, sequentially, sequentially and Now quarter quarter. driven year-over-year. first fourth stronger-than-anticipated applications, high-end industrial, industrial, look of which marking up mainly fourth all time the turning And XX% was two exceeded in nearly the of approximately which the growth third

flat, For customers underscoring the sequentially. in about the across the represented year, revenue, was XX% and of applications In industrial this diversification revenue communications, business. which fourth quarter, was XX% down

and year-over-year, double-digit wireless wireline. in driven the by growth was However, both up segment XX%

X% year, communications Importantly, aided by our geopolitical And was to down for tensions. year-over-year. activity revenue not the pull-in growth customer related was

carrier 'XX was restrictions, up List modestly revenue for Entity strong quarter, our XX% However, of in data positions represented over In excluding modestly, grew networks automotive were fourth Huawei to 'XX that control by center. and XX% revenue, and and year-over-year. XG sales in up which sequentially impacted and a the our testament optical

the exit still revenue XX% XX% year in it we with to vehicle fourth finally, year production. of above up pre-pandemic down year-over-year. levels, lower revenue, mid-teens the the for was sequentially, consumer, While And down XX% which quarter, represented finished due

three after we're of years to believe and 'XX we in mentioned, Vince As grow positioned declines. beyond

quarter. Moving bps year-over-year. on up expense to XX% margins sequentially merit year-over-year. reinstated variable was the $XXX sheet and $X.XX. days balance margin interest sheet balance up shift down and from the we cash bps from And million, sequentially X% sequentially, flow, experienced up at target year-over-year. and all plan rest inventory XXX dollars and as lower finished sell-through at as fell approximately higher trends and $XX target geographies. inventory was was our X% 'XX. in cash to our the inventory XX.X%, Non-op the of we flow our Channel expense. up below OpEx the slightly inventory at quarter. fourth through was quarter, as we on million, Gross driven our model the saw XX%, year-over-year, rate strong progress days, Op declined nearly P&L was across tax adjusted usual days operations return eight-week to for to If finished compensation. $XXX both third million, we modestly by XXX was We remains to EPS down XXX lower In and than seven-week XXX

share be our do year, over of cash We spending or dividends as of And for to with the XX% million anticipate CapEx CapEx, to generated Maxim of judicious or only after restricted announcement. our debt $X.X This We returned program and the Given this full cash then normalize billion the of the was our at we below continue revenue. share pandemic, X% to $X.X target, free pandemic were buyback free XXXX. quarter of shareholders the paused $XX around height for flow. revenue repayments. billion and buybacks, we X% flow we following through to about

our to over position $X result, a cash As billion. increased

the During shares ratio to on we approximately reinstated debt left outstanding. billion, leverage cash our we which of notes. $XXX $X.X approximately resulting our the XX-month buyback share a year retire quarter, of billion or our ended has $X.X at used million XXXX Recently, a flow trailing authorization, in Total program, basis. X.X in X% of

leverage, Given 'XX. our reduce we in low debt do plan not to further

the billion. For XXX% combination the decreased share through context, and of over us our we've three continued over debt years, reinvestment and approximately improve by return with flexibility greater and stronger sheet cash provides free buybacks increase our This balance the last in acquisitions. targeted dividend business, a to the shareholder $X value consistent flow term on long increases, more

is our the first plus aggregate expected of minus expected increase annual at outlook. comp quarter is sequentially at expected down high-teens look slightly due Interest let's in be revenue to margins BXB down to now expense year-over-year. XX% So Op the midpoint, midpoint we Revenue $X.X or billion, approximately $XX be higher and the sequentially. to are At expect also million. merit. to variable to guide, be

wrap first the September, summer plus $X.XX. merger. of overwhelming on In the clearance between our shareholder I'll we of both we a with these ADI Followed our very from our Commission on For also and close in be pending Federal XXXX, minus initial is inputs, we regulatory acquisition rate the Maxim XX% on adjusted applications update XXXX. track the And acquisition anticipate of regarding received clearance we $X.XX, in and Maxim. a EPS to for in by shareholders, from expected Trade by and based US to the tax or progress China support XX%. the quarter the and EU. encouraged remain I'm submitted brief combination

will capture expect the excited are in together, that we complementary combination additional ahead. years this We and about growth we

Q&A. lead it back So to with Mike turn that, to the over let me

Prashanth. Thanks,

in to limit yourself participants We on order you Q&A allow additional one to to this question for ask that call the get time morning. session. Let's our

first follow question, a that, allows. we have please will you time question, we your If re-queue up our please? can and take With if question have

[Operator question Instructions] go Vivek of first America. our comes from Bank And Arya Please ahead. from

is line open. Your

you're flow you question do cash back the near especially Thanks I up term. my And demand normal you different some you. industrial, in on end end puts for the January outlook, your on the broad for should kind help our in are both Any year-on-year, certainly XX% strong the a which term strong terms taking obviously, because is year near would takes your and overall trend which easier color it Vince, on near environment, starting against levels, calendar do congratulations calendar auto, the But just execution, frame very the really look are to and comps, my then be for how I below year Thank just the when So forecast. think in about so for sense question and models comms at markets the of and the next note. consumer? free what feel line term, or year? 'XX, think markets to we helpful for generation. of

said, to after I here. is I'd since your I Vivek. supply last last I expected a in believe customers Sure. balanced balance are, say, between industrial, our call for said stronger think of we think there and in growth become and question, for little the I are year But as has the a for industry. well, while good overall, my conviction XXXX, and say, best as we big can Thanks first demand. be clearly, a automotive overall very comms ADI XXXX. well a very call is softer better. half I is And would solid earnings Right going as the strong even seeing And tell. very demand you trends with we now, very, Inventories

test a industrial, And through if at clearly of half go second areas you. aerospace a automation, ADI. little broadening in for couple half healthcare, about look saw equipment, Let are has strength and actually the segments, try good and I factory strength automation, things I first And the think persisted half in automatic businesses the of you clearly seen defense persisted, was market process and I demand. XXXX, horizontal that we've second me more those in and year. the emerge think unpack of for If strength they the

as sub-segments there bookings just on - give continue electrification little in levels. So, seen, beyond. to a infotainment and which if and And the color, first bit strength of strong, business, back where that to high product the And strong within you you quarter of business, video. in remain believe rendering now beyond is emerged will has doing a have and we're which area. that BMS upsurge look are is Automotive, will I we that, to of as fifth fact, continue well had are we at pre-COVID into the BMS And is solutions, our particularly well. solutions, so audio generation fidelity the strong

we've are several building Our the with the road AXB the been years strength riding are doubt that the emerging solutions you solutions on platform. really. pipeline will again have top seen active cancellation over given And great no well, of last noise as

if bit little a fourth here, actually of strong so across both in and the were comms year-over-year. quarter was XXXX So wired. maybe up look high-teens I at Actually, wireless both

of where the strong the if we extract across we restrictions, XXXX rest So was Huawei had the customers. all

during fact, In grew XXXX. they

as And more story. the think will China, of particularly has report pretty move that I'm portable to 'XX addressing, I ADI had about the now the reached will as have So, well, it And we of is applications in as good America. the customers, serve that believe years. deployments XXXX. the we're feel good we more be of in several global the we for solutions broader-based on in beyond downward given North communication XG, glad part with which we've as professional also. expected we diversity for that about well I But business both been bottom the consumer performance expect now a that

question answers that hopefully, Vivek. So your completely,

question. to go We'll next

from Tore ahead. from Stifel. Svanberg And go our next Please comes question

open. Your is line

a on the zoom Vince, in more XG. congratulations bit you little And and on was comms hoping results. could on I

talk the how radio. that You very on a just Thank maybe you. a flexible ADI the software-defined talked about and comments with O-RAN I role just about was into little hoping XG bit architecture generally? O-RAN. approach you Obviously, some of could has more plays

Yeah.

the what's Tore. your question So at if view I maybe shorter-term slightly longer-term a take I'll on the view than address happening well, look and O-RAN in business, as

wireless I deployments seeing aggressive as the what comms that is more investments optical which general, been for technologies, in the our increase, making the content obviously of several say has balanced we've answer given question higher to has And would I and the So, systems, these last particularly channel share And wired, we're area. also MIMO-based in that the wired is been been seeing in OEMs there, we're us a both our more what gives never portfolio count wired And lot strength of and customer continues seen with our in for business products years. in ADI radio. to massive we're never more far where general of that said the technologies up for span the has key stronger supplying. terms in in

XG of probably seen lot - for of interest probably And We're it's XG. the be I in technologies the China. by decade more we've partners the the ramp So, towards be important driver here. will in of to that expect of deployments I beyond of XG for primary the America globally we've a multi-year, to area. second XXXX is with And working our half think early stages XXXX I at O-RAN. biggest think a remember characterized also

seen. have use partnership technologies we've the through Also first announcement technologies our radio about of our - Mobile with with Rakuten our had in will NEC. publicly Japan You the

forth. being consumer adoption deployed three critical like XG more years. automation rapidly factory see beginning classical applications, will and over deterministically I so applications XG early next of stages to healthcare, also into for and I'm continue But of so the the So, think on it's now

to here market So, long-term, for ADI now the with increasing with a this boundaries growth position that's look the of and if we enable customers Tore, more I radio customers got stronger cycles going with deal our push innovation be complexity, to with to our you systems. We've continue is content. technology rapid software-defined to the to more a to the simply think our continue exponentially over and

to next go We'll Tore. question, please. Thanks,

next Our comes Suisse. from question John from Credit Pitzer

open. is line Your

results. to question question. letting have look Congratulations Prashanth. October if would A ask solid me because and than the on expected. as should But for margins OpEx modeling funky I'd at perhaps calendar top we be line. continue for the into variable just comp about January 'XX some puts had curious how given the OpEx you were expense Thanks look the the on a assuming thinking line? as reported, I'm year some takes Prashanth, and model better the incremental you do quarter that's quarter, lower was I quarter, both op the you year, COVID on just coming back be into guys how

the Thank question, for you John. Yes.

pieces. two handle in me that let So

gross talk OpEx. margins then and Let's

passed, automotive. quarter margins, So XX% for considerable we from gross pretty just upside the had

have headwind in with And some below corporate in automotive. the margins. explosive of growth terms so that average we mix It's kind of

about quarter for first passing think through coming for the margins we period. we the quarter, gross the are holiday As -

for balance from the XXXX. shutdown of year to the two the to some down bring cost in we going of expect as the facilities of a we as LTC progresses that shut remaining fabs in little on But will and of continued - of be $XX reductions we're pressure our utilization, improve the the million have of some we holiday period. bit our So, have

OpEx a We've exactly side, our the act shock to comp flywheel. variable On right. really designed a absorber, you're as as system

that the deal unwound. uncertainty, it should it the So in and great had of XXXX when way we operated

a implementing leadership this delay XXXX. in we In addition, back brought decision merit to just place quarter. into we that And made as a team past

those quarter you of that see into those will my decisions both first I've and So, from in the guide. mentioned - headwind from

remarks, So both, a my it's better variable and both merit prepared it's - full of quarter in compensation.

we'll Cheryl, John. to question. next go Thanks, our

BMO. comes from Ambrish Srivastava question next from Our

is line Your open.

your the zoom business. the to really on industrial in has I resilient well Vince, as This for larger business compared wanted a past yourself, peers. as been cycles to

and So able But kind just to us seen have how a of if question you help through XX%, can us automation. really to us the help segments gave contributing that for you cloud is, understand various understand parts you you're help the are what pretty business all then - we XQ, we just complementary understand the us automotive. additive you. on? or the does bolting Thank XQ? on disastrous benefit understand industrial you'll you Maxim that how the a And the from be Can parts the Maxim, with business number,

Yes.

So, thanks Ambrish.

First and terms we've But of tremendous it's GDP. a to time year trying fairly predict of tricky out the in foremost, still with come strength.

First of the half and automatic the aerospace healthcare and sector ADI well. defense, year about was equipment for test as

growth roof, the in as in particularly automation, we very surge, expansion through building that's which is expansion of, quarter, very, the the second XXXX. - way, albeit and I'll base factory say, expect see began depressed in economic the the somewhat takes a half. believe, then, upsurge, So I the to way, to which fourth is, good by in we continue And of really by second continued, the we're upon that the half with -

also, crop is The of ADI, business the out and - products than stronger the industrial more So this company's for company. of ever half than revenue. the there of been history it in is has

company Our the to we gaining our share, the ago, important think decided note. to and in results roof market demonstrated this that's of competition see, was we're we're and I focus our versus - beginning a really decade really

with market more customers more with better cover we portfolio. product So, share,

and effect Industry And heritage greater really primarily as two power very ADI. well well? to for is about cloud, And a that signal, long Industrial term. areas, precision does we signal across raw these X.X in it signal moving the healthcare on sensor bodes So even is towards Maxim the processing, will that brings connectivity. the sensing are deploy those of for with to And - spectrum actually where Maxim long signal about telemedicine, all management. add the which coming digitalization, capture for value ADI board, bode well processing really - to is

to So, about more more bring capabilities excited customers. to I'm getting

is to becoming they terms of ADI swaths the problems, their sell growing of scale complexity As require bigger and analog scarcer. scarcer is in The needs.

So, to solve of skill bear more a bring our more more to will for that we complete customers. problems way in

to about that's think I So, Ambrish. think the it, way

Ambrish. our please, Cheryl. to question, Thanks, Go next

C.J. from next comes question from Muse Evercore. Your

line Your open. is

you question. Thank taking for the

side, year-on-year the on business The years yet question X% Another October, the is last Vince. growing industrial over essentially few flat. is in

a curious, so in the is time like growing it first automation And real years sounds two positive for signal.

out thoughts what So would typical your as more business growth kind perhaps look of that segment considering is as hear growth come that we of business as of industrial to could beginning healthcare, machinery, you're Thank some to you. in the investing on, this recover? the some well tried-and-true of like love factors like pandemic,

Yes.

So if thanks, C.J. look - I

you automation out way over for down industrial two term, years, been years. on half the two If look has the so longer and last really a its

driven in was XXXX, there that with even sector in off the XXXX. the of crush And demand anyway I pandemic some by mean, in, Obviously, more was SAAR way trade so tensions. the dropping automotive

factory So, big, big a automotive automation is consumer sophisticated systems. of

for longer-term grow got, over the the mid-to-high the for I think technology sense given If improving. the long-term my is can digit period, and you sense the vectors vectors, business business ADI. we've think the my market is demand integrate prospects level in about this single that if over all that's vectors, five-year So the the three-year, here

Thanks, to question, C.J. next Go please.

Toshiya question Our comes from Sachs. next Goldman from Hari

is line open. Your

performance automotive to both as I well up into year of terms QX business, in the 'XX. wanted on outlook fiscal as the follow Vince, your

XX% QX, on sequentially. as XX%, of Just sort you clarification grew a plus guys

that I up in be think business teens. low were the you to guiding

excited in very that fiscal your most when across business BMS expect and the applications? Or active customers there about though you specific of think higher overall guess you potential recovery for drivers and there quarter. guys Thank a any cancellation, top therefore, a automotive of you're kind appears of there automotive more 'XX, It your about obviously, outperformance function what are but specific talk beat year of importantly, production? the quarter? beat the of big So would I most rate a the industry, most that noise particular, volume and your growth customers essentially you. in and your as across any in were standouts you in Was into about? versus on of automotive the global

that unpack and for try me you. let So

the up fourth though than actually, strength overall X% solutions across the the sensing at sheer in applications. we have the the and processing. position else we even all And with year-over-year. that that we single quarter, had better But management strength yeah, in we nobody gained did terms we the And new that were and battery large. down bring year-on-year, match So can has of market were our performance offerings our

half, I electric decade that's will think a and decade, the the looking area, So, think for electrification vehicle prognostications growth I do in that, two at of decades. just what a trend

good So, that about we feel given position. our

noise cancellation. our I technology AXB XX% on at talked high signal also the if think platform alone platform, just our DSP, year. based look about fourth up previously road signal in AXB our you the processing I was quarter, performance processing

So, will look a I for down area. believe it talking roost business coming the time. long that about automotive ADI are in at home we we've that been If seasonally, But is really to be but XQ, up. typically, it revenues the now

look we discharge. an the that the I and if years been steering investment And strength I increasingly think here electric areas seeing opportunity about been to and I the enthusiastic about will towards already into beyond. as first just feel battery that the the battery that over the we've or about at three we've really coming talked market. quarter fourth battery continue So formation deployment that And so, vehicle from through last

and innovate create those to and between blue problems sky share the space more competition, challenging. customers our become continue and markets growing the we're in and we in ourselves more key our solving So, are that more as

sector. partnership So, BMS really XXXX noise grow which recently, business GM. the But is I've about infotainment announced only already, with That is we've brought in really, talked that automotive cancellation. the for that to managed we've dimension new start. growth we've despite ADI quite And the wireless a in road compressor. AXB, a

in and The automotive out applications which the franchise play other our attaching of we're critical Again, we all in ahead like areas is in as I that progress, is the power as in still systems. the an of design that's car that about we've of area think, early good just general, ends. feel safety, the well And we radar, thing in innings in safety us. made still where power I should point vision-based excellent getting

Now, we're turning revenue. them to

Good.

Next question, please?

from ahead. comes Barclays. from question Please next Our go Blayne Curtis

is line open. Your

just I answer. revisit want to

January. curious. it talked there just just kind term a Seems X going in pause to I'm drivers in be X I'm kind of In January, between about On on your China. like of bit be Phase a like the longer little think down I the you perspective. curious is Phase O-RAN. might comm,

timing Just could China and think any back? in see perspective comm do curious, of when recovery you coming a

Yes.

sequentially call I be is why sequentially. big it, X%, reason comms single-digit down comms a Huawei down going They're I a ban. sales. in to mean, X% Huawei was is was of low the customer, zero. think XQ

into next right, headwind think XG the China our run first deployment timing are a you're of of be that'll I So, TBD. quarter. And

I and think a that be business on. grow us it back when to market. in very when they will But continue that to for turn do market we'll call hard great it's will happen,

unsure of there. to Sometime geopolitical that's but the going when pinpoint it tensions the all half likely 'XX, out be, first really in given to today

Europe, be and America started year-on-year XG. The Korea, biggest to Vince, you will better the think, North should in China. really talking out 'XX, a do XG about still broaden less deployment global start market, about 'XX. really has it's ticking but it's off. as how I to Japan, global good just more China did thing, good about job not moved China. should

go last please? Can we our to question,

Seymore from from go And our last Deutsche ahead. Ross Bank. Please comes question

open. Your line is

in. with gone wanted have those the wanted linearity was any for played about please? that of disruptions to like in book-to-bill and commentary given those October that your have sneaking out little Thanks on seems concerns away, It me wrap supply sorts of had bit kind your quarter, just just talk all seen? a Can the things? of your of how you've about what to channel through inventory. past linearity up get I the and But just you customers the Have the bookings demand. of

we me out was then quarter Bookings started up couple a from of September. data the you which give points had We remain July let August, normal and So pretty solid a strong here. in so far.

is where I into with coverage quarter - parity, our very book for think where we're bill outlook. at first the normal going backlog to

channel. make comment about reflected in that we of is I guide that a the inventory did the have. All in

sure So of the model people below of eight-week our course maybe making are worth model that that's going we're back understand we also seven-week XXXX. and build kind ourselves then to to into over that

as also should bit So, - tailwind provide bit that XXXX. a we a through little of a little go

for can right. has thanks, holiday. All for will a copy everyone available information the joining website. this our And good interest section in A continued everyone, of Ross. Hope Quarterly website. all today And morning. reconciliations, the Analog in any Thanks, us IR your found on and be transcript be our joining Results us also additional of Thanks available Devices.

call. conference Analog This concludes Devices today's

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