Analog Devices (ADI) 17 Feb 212021 Q1 Earnings call transcript

Good morning, and welcome to the Analog Devices First Quarter Fiscal Year 2021 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. Mike Lucarelli, Senior Director of Investor Relations. Sir, the floor is yours.

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

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

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

GAAP include items. special results measures, these today financial which will comments CEO, directly about that, to release. non-GAAP turn are measures with also our special items our to in also today's to measures are periods. Vince? comparable excluded from and exclude Reconciliations Our earnings And additional their I'll over it prior our non-GAAP Vincent of non-GAAP historical most Roche. measures ADI's information comparing included When performance,

Thanks very much all. Mike, to morning and good you

a our more before results of review providing how remarks So and safer connected, a I'll sustainable we're into with shaping my future. start insights

We margin adjusted for margin XX%. quarter told, of across was delivered broad share gross outlook. The year-over-year. op produced XX% strength increased end was markets the of highlighted and came by record at growth per $X.XX $X.XX. we XX% our first All in high of nearly end quarter we and Revenue all earnings industrial of our strong delivered that results The a based, billion business.

top XX% we to flow placing of equating the XX XX% generated free S&P billion trailing margin the us free cash months, XXX. in Over $X.X cash flow

I'm pleased performance our quarter. with very overall team's this So

engineering momentum. drive Now discuss at which the the specifically I'd sustainable standard and Semiconductors, our of to planet, social action building and like world's how change of digital bedrock major in tremendously of societies is of and value called to create for positive ADI, modern prosperity with growing Awareness our advancing At health uniquely turn the have a challenges degradation play will climate protecting we're environmental long-term our our good of planetary as while for mission a intersection to shareholders. impact. customers our the global we're and improving technology most the positioned sit health. living our role in economy pressing economic

designed, of industry performance edge With with the supports of increase chip of key all customers its sizes sustainable our trends. breadth of Our portfolio we performance generation capabilities leading enhancing of spans the are and with inherently aligned secular benefit. each industries systems. that while efficiency customers delivers defines portfolio and This

automation, and I'll entering on today, where across is So electrification ADI connectivity goods sectors. the focus

first our boosting to cobots. robots critical The industrial half human all of floors Forum of tasks this be the trend, that factory automation machines and is deployments this future predicting chains has our over will paradigm. XXXX accelerated To and further by the is Firstly, by of routines, is human Economic performed customer and supply pandemic history. support at World in base

safety electricity. the energy and also by to deliver installed Over industrial robot With But years the of speed deploy the technologies XX%. We flexibility. not currently consuming and all increase expected world's XX% global base savings. that need urgently five to only next motors is about accuracy,

a how in challenges these automation. technologies share me our examples of meeting let Now few are

to XX% can variable firstly, up drives motor energy reduce So a consumption by speed robot. in

management power together and Our and technologies response signal power chain time increase isolation conversion. improve precision

time interpret and the our around world sensing technology them. of sense Secondly, to robots allows flight

foot safety. per can So robots improve and customers workers more deploy our square

Thirdly, repair energy our by solution inefficiencies This OtoSense monitoring downtime condition-based and machinery. proactively presciently lowers consumption and costly XX%. avoids to identifies enabling motor customers optimize

that save efficiency emissions, motor of XXX and of annual industrial Importantly, of is these million homes. robotic improve almost supporting technologies gigaton one thousands component can of total, automation our customers. residential business control In equivalent the key tens of COX a

We in accelerated XXXX expect growth to drive and continued digitalization this beyond.

consumer approximately role road ADI today. the predicts of turn the the from XXX Forum I'll are embedded for managing World discuss to up Now there and accelerates. will electrification by supporting electric vehicle and battery. forming as journey be million million demand transportation greener across vehicles is about to important Economic that exponentially infrastructure ADI's the playing electric The vehicle phases solutions X from on all EV XXXX

So share ecosystem. impacting our I'll now technologies are how this

adjust a and drives smart vividly First, But can stability. grid environmental which distribution, sources new the shift monitor in great benefits. energy to and transmission renewable performance. also obstacles requires This creates

control are shutdowns. ensuring to the prevent issues, energy systems mitigate parameters shift requires remain to and Our stable related technologies and grid storage intermittency variable to sensing also demand. critical This user

high conversion systems technologies help power and accuracy battery monitoring extend by XX%. than life our Here more efficient

which Turning to the vehicle expensive the part. battery most is

than up enables more Our XX% System to miles competition. charge Battery our Management or BMS per

leader, electric market ADI's BMS technology vehicle over the today. half XX the brands top of As use

This models wired fall the Interest and OEM second rising the uses Ultium technology enabling wireless paving is we all XX the our XXXX. reuse be platform. last wireless technology battery to scalable wireless BMS quarter, recorded GM's win. expected lowering our systems. last our platform is and weights first which by BMS design industry's solution we and BMS way for in addition, of different architecture, is across deployed by In benefits vehicle storage the introduced our

equipped of approximately Importantly, when is In tons technologies with the million environmental impact the vehicles from dioxide ADI's our BMS BMS notable. prevented atmosphere. XXXX XX carbon alone, entering capabilities

by and equipment customer's to by nearly thereby times our at Our the shrinking up costs enabled stage current footprint solutions four more utilized half. channel per battery formation density reducing

possible on energy levels, makes than more about factories annually. energy recycling Our power million reduces back during the XX% for formation during production by it used formation recycle the today's X to grid. COX tons technology output into the of Based

So our market preservation opportunities. all with not represents natural be the growth will precious of valuable long-term critical revenue to one But electrification ecosystem. told, highly only that

to So historically in proof half role to exponential base powering ADI This record next finally, computing By playing generation X% the communications XXXX, forecast of suggest point substantially increase and a let not will to air in center and transferring years. foundation building a XXXX. the the me productive by capturing the turn to pervasive reduction information the had also economy puts out decreasing anywhere interface has data support connectivity. traffic is critical the signal on face pace society In the increase at to pandemic, its exponential traffic two this cloud the a wireless the sustainability about on with carbon connectivity infrastructure From in station and connected emissions the the and combined is data. in by And impact while is every a market benefits. This ability known for power. data while been sustaining of mobile environment, a to IP XX-fold. increase that clear is from stay and the has positive global our double

chain software the transceivers defined and When power has invested vital with the ahead signal while by help technologies our XG radio to XXx decreasing interface air our in channel to massive performance. decrease count manual bit comparing XG architecture, ADI solutions XG, and precision the XX% architecture. per size reshaped XG energy complementary So terminal are radio deliver maintaining by a and the at the enabling

With data generation. the exponential in upswing

Our to gigabits per customers optical from infrastructure are XXX upgrading their second. XXX

important. Capturing than centers per But and efficiently is continue million while at of energy And of maintain connectivity optical with to XXX tons in four times help enable terabit the transporting Our to and data customers increase generate power beyond chain to precision the operating ecosystem. expand. centers rate. the data primary source constant signal opportunity more year technologies computing consumption ADI's the Currently, X looking these modules in COX data will is globally. data

So this compute and power from is loss volt where increase to the XX reduce power transition distribution can XX density.

data investments the are wired enabling power efficiency and and our XX%. capture this of of networks and All course build data resourcefully. to solutions told, micromodules and according and Alphabet, solutions by and efficiency their computing and and is ADI volt transmission energy this Our approved center monitoring power to generation scale transition XX economically wireless core ecosystem and approach system greater customers to enabling next part of

create successful impact the our lives focused develop our made world. back, we've outcomes a engineer and rich on yet to in to incredibly to progress our a stepping with remains So greater technologies good proud mission on innovative increasingly that I'm leave customers but be done. We're of lot partnering people's business on

Prashanth. with And that, so to I'll it hand over

you, Thank Vince.

high to with welcome all adjusted press today's breadth Revenue earnings increased model my exception the outlined operating of nearing release. with delivered quarter add items at with year-over-year. exclude our me XX% the segments margin end results our long-term tremendous our on today basis special comments and ADI an first be expenses of in non-op Let adjusted will strong revenue with quarter call. first which in an outlook. this EPS XX.X% saw XX%. and We line grew to growing expanded market all-time high, quarter My

with And represented BXB double-digit X% increased geographies. year-over-year. sequentially across revenue sequentially quarter each Industrial in XX% XX% end and XX% time strength years. based broad customers The X% represented growth during industrial a across first record of and for and year-over-year with applications, over market. increased the quarter revenue three This

revenue and wireless across the despite year-over-year. year-over-year. quarter. XX% XX% this our which revenue demand from automation accelerated Communications wireline Automotive energy represented XX% Both businesses which XX% but Huawei during revenue decreased double-digit quarter. XX% sequentially and increased represented of increased of sequentially X% Specifically instrumentation revenue zero and quarter grew this

expect the up of We represented year-over-year increased BMS and exhibited design home strong With consumer X% a the to across which And saw year-over-year. industry applications. ramping entertainment. hearables, growth, highest in we sequentially double-digit given all pipeline. lastly, production wearables growth growing trend XX% our and revenue saw we continue aggressively X%

gross was better the million an of than investment OpEx the expenses strong guided compensation. our gain. $XX and were quarter inflection quarter's Op trough weaker line, And seasonally P&L, quarter's us which will benefit in track year as our margin to puts growth the for is on the We in the quarter we finished XXXX. full XX.X% mainly sequentially in the to This savings. variable margins from LTC and flat at gross top Non-op utilization cost anticipate margin to the finished for a XX%. first midpoint. and be majority of first due to at improving $XXX due million up capturing rest return year sequentially outlook above the the now year-over-year

was Our quarter tax rate for the XX%. approximately

So prior not This from above all told, of in that high EPS at in the end an came outlook. $X.XX investment our benefit guidance adjusted a was $X.XX. included gain

dollars flat balance sequentially remained sheet Channel days seven-to-eight-week XXX, XXX onto the working modestly down and below quarter million judiciously cash weeks in inventory record flow, CapEx XXXX. X% CapEx to in add slightly as or was inventory increased finished demand run in We're measured $XX while to sales. at fiscal increased our Moving CapEx the of X% will this of quarter. our target. fourth long-term from and roughly well target for anticipate meet above that inventory to

flow, XX or billion $X.X XX% months revenue. cash of to the over we trailing generated Turning

due share proposed repurchase quarters to recall Therefore free and You'll during our XX% in debt for program last we of that returned paused acquisition. the XXXX, our repayments. shareholders few the flow cash we after Maxim to year, pandemic

given reinstated to and program returning of quarter, repurchase current the our free This committed our leverage we've we're year. X.X cash ratio flow XXX% for share

repo on our also the marks first share. last inventory I Looking our quarterly the coupled quarter, XXth lean global over current Before backdrop demand context provide per fueling at supply than putting dividend want supply. and million chain. with a XX% of nearly the at of the guidance, for is and increase the semiconductors increase $XXX some announced an XX expected we years? $X.XX executed to state economy to we in stress onto moving unprecedented on recovery A sharper Which

At more outperform than to industry the It's like this. at be of the demand. we'll ability year. large our aggressively ADI, confident While working constrained we're operating in the times meet balance in a is to environment in likely for supply this historic

customer and Our well. healthy inventory sheet flexible base product model, hybrid manufacturing diversified balance us position and

from In working addition, increase operations capacity we're additional output. our and partners external to our to ramping secure internal

guidance minus plus $XX be would Now reflects provide our midpoint, let is quarter billion Revenue million. or the me expected this second At revenue. be outlook. to $X.X record

is expect of see XX%. our rate or $X.XX. $X.XX industrial be do Based guidance, and double-digit automotive, XX% in be be on year-over-year minus tax midpoint for comms. to and expected to a market inputs, op decline margin We will these bps XX plus the consumer we our growth plus Based and adjusted on but XX% between minus expected EPS or is

So in underway a that of encouraged markets the summary We're across seeing Maxim ADI. a the trend broad-based with and we're near-term end recovery uncertainty. and mindful will to this close while optimistic I'm by XXXX for we're is ongoing macroeconomic expected be summer. transformative year our

now Mike to start to me pass it Q&A. Let back our

Prashanth. Thanks

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

question, have your If allows. if requeue we a our follow-up Cheryl we'll first With time take please that, please. can you question have question and

comes first John Pitzer our from from Please Credit Suisse. Instructions] question ahead. [Operator go

line open. Your is

levels and should go What Appreciate EPS the I'm guys. guiding OpEx flattish I strong just bit you gross unfolds current are throughout incremental because little Prashanth, just you're and of the supply from kind about rate question trough year. talked thinking puts congratulations the morning, already year? of sort there the the of we op the here. curious to results. OpEx tight want situation? from be on of we specifically, takes how needed is on for balance talk model as run revenue. margin and hitting the But about the the Good mean about a I how clearly

the the that. in this the John. of going OpEx year Way that, environment. for reflection of of we recall about that effect you're think as you last low had payout the year a half in the is see bonus if Thank first question, Proxy, macroeconomic first you identified to to the half In we opposite particularly

first you payout. quarter So see second both on average is compares. But upswing significant normal and in which bonus impacting do variable the for it's a a a comp the

months addition, we the merit that we of pandemic merit increase than as last have put normal later several year. in In you if remember a result the increase

will rate a see beginning then So on you're year full quarter it carry in and to second basis first that in run quarter.

the related comp not steady that demand at items to really we're is We're So at beyond these OpEx the investment any requiring generating. a additional level. OpEx level support

guys. you, Thank Perfect.

next We'll Thanks. have question. our

you. Thank

BMO from next Our comes Markets. Capital ahead. question Ambrish from Srivastava Please go

open. is line Your

constrained Prashanth and get supply that wanted facing. to Vince, to back industry I condition is the the current just

you. things about ADI? Thank get going? running a see front supply does front end, seeing So CapEx and through happening? to for and customers more experiencing how lead talked there could you it additional CapEx a cost in please little higher. comment I you're Prashanth, bit pricing on end? you pass you chain change of your wanted importantly, back approach? change Is does the to better the and as times structural Is you able then what that are along are you sense And here Where change on just increases that your the from a

packed Okay, into lot question, there's so Ambrish. that a

couple me a take pieces it. Let of

producing levels and to be So going shipping a record. outlook quarter and at we're second record is

of We deploying significant end as What alleviate we're have capacity then shutdowns. that internal that we're into to upside from deploying the But supply acquired consistently support and an guide. mentioned well summer and enough partners. from I guide help mostly the procure as additional facilities to depend that which standpoint situation meet the to We're down gone the in both to on internally the we external to the is what both capital process adding deplete to wafer that we're that. will capital was able to our doing is our during inventory out externally since going back additional we're been we've have building wafers additional what pulled last pandemic and versus

we to capacity is doing question the of side. capacity additional the some mostly that with additional on this is think demand very your But and from for to get going our outpace we're I the that. of is period CapEx strength then, answer Where test even partners, on time. it's supply capacity likely that for can

demand standpoint, strong the revenue a percentage capital we on is that as be at think for of we of From of the chasing some year I guide So how this balance deployment that of least some dependent will as continues rollout. to year.

I when cripple on come So say a or down if continues revenue hair maybe slightly X%. could It below to to above X% here. just

lead Ambrish. the question, time on just Yes,

our the first of think consistent at large. what extend this with with I lead times industry is recalled we've But into quarter during and entered normal So part which the quarter we we've the lead early quarter pretty seen times.

we of different extension see some while is We're in talking places. hot really about So spots. few weeks

me the run manufacturing plants; too rather Let remind to you company. run this run our operating We plants we POS are that, POA. than

right seeing now our and as we're substantially quite for in pretty said, POS between this increased upside a year balance preparing backend. and we're we've the what bit during So POA. is of Prashanth good But a CapEx

Thanks Ambrish. Go please. to next question,

comes Our go Please Research. Stacy ahead. next from Rasgon Bernstein from question

open. Your line is

wanted ask about comm. to I

segment So the XXXX? full it's comm.? And year-over-year think and the down year for overall QX. the that comms year I do you the trough for sequentially year-over-year can Is into guess grow for

to part take that, I'll Vince? that, of take the want Okay, You first Stacy.

and wired let's So break wireless. into comms

the On upgrading are and growth looking we're wired, continued as networks. for centers carriers data

they counts a deployed that, a changed. China that lower. bit they're is a the deployment kind XG event on bit have On always channel digesting that as that the the not half seen of be of and view more we are in XG our second was said US wireless, has of slowdown to and a going the we What

the with second troughs the in second in So half we global to and begins quarter comms pick XG. then up do think

on our on basis. we of grow can terms view In a comms whether year-over-year

significant the going a we that's ask. Huawei tough headwind have Given zero, from to

that Yes, and has CAGR significant been headwind as that's X% I the comms with everybody for remind in think well, three-year very, China. very I'll that's

I is part. hundreds a critical the it's many think when Many, part. is in at tremendously you comms an business XG diverse. look of customers. critical Wireline ADI increasingly

CAGR So single-digit that our produce when than you a for that, predict hard very, But lumpy business. we is have mid business. better to growth expectation very in [indiscernible]

sorry, long-term sound That statement? this that I'm didn't a was that was like year.

few the I years next Over Stacy. think

single-digit business. mid something produce in that will than better We growth

we says year Prashanth what headwinds, China. channel Stacy But long-term then in the to they to, should we've and grow we that. - in Yes, been go think due lower will to count can't There's say to Huawei no I as pivoting fiscal to this we the XXXX will forward in don't over - it go Vince, reason going least growing grow at grow line X%. zero

Didn't growth in talk double-digit business? used to you this about

did We Stacy.

grow think those no double-digit? years changed quite Could bit. I it over reason look things are the world the you're geopolitically pressures, past Sure didn't ago. years it But it we the know I think as could. with two can't. has a we two seeing There's today

think The expectation. reasonable working early point think a I stages being at digits but grow we're pretty a numerator off XG, of time. I at is plausible single in bigger high digits this double to able

in very high we good single in can shape. think produce I So the if very, We'll digits. something be

Got you, it. Thank guys.

Cheryl, Stacy. question. next Thanks

Our Stifel. comes Please go from ahead. next Svanberg question Tore from

Your open. line is

technology embracing how second quickly this to solution you for and win potentially little Could OEM six, penetrate going the technology. this or bit wireless elaborate you year is market? on to OEMs design technology seven or BMS that second about next? talked this you Vince, auto using your get Could a

our Well that's expectation. certainly

strong to we'll five pipeline, latter terms expect I but of to technology. say, year XXXX now of that remember a to we this of start have and should four market. of portfolio end And see in I the the adopt think we OEMs between think very The in a getting BMS. also With production. part strong wired

a expectation But two this wireless is of in hybrid and that is, of be I handful think clearly star So our at it overtime least at we've wireless. will But kind time this of have OEMs we'll for the using technology got working us. between those start and wired bright by XXXX. tailwinds point

helpful. Very Thank you.

Tore. Thanks

And Vivek from our Please next America. comes go from ahead. question Arya of Bank

Your line is open.

just of and about talk XXXX growth. to wanted sustainability fiscal the I Vince,

of heated and second towards as So think you're the QX only with you second over other the kind are segment because which the want ones the into and accelerate of right? year markets half - very of strong, do in half? year? starting talk right outlook. Thank can the you are fiscal you. - reasons think we XX% the rates Just year think in are how QX calendar do going growth which to about the about demand should we How whatever about actually you of changes or the go the half now second should of line which year? mix how Which

the business of guide we just question. bit if Thanks I back But ADI. But of compared normal speculative into Typically for XQ a of strong quarter to And the had to at here. kind kind of stress uncertainty there's you. one the little I for particularly market. Q in I there. still a of out at tremendous want reasonably peel want varying and get a look But the only story kind markets We for is this predictions amount to don't a time your point can pattern. low strong first making

XXXX. So we down our and first. produced down half industrial of two in the was company's about But in years which business quarter the XXXX revenue represents consecutive we record had the

the business I'm business pleased expect multi-year thing products industrial our in diverse coming in that our to part. got I of new very the and automation the We automation I expect the to market. a think part see opportunity about strength most that strength pipeline, we've given is very, is ongoing of tailwind and one

of electric is noise as electric there's of think I see about to by over a for vehicles expected premium And to the business, and company the timing ahead. that, deployed all prepared narrated deployments first just good right talked from today expectation X provides would the said second weak as through in think XXXX. quarter in the electronics really, that automotive kind and we've my of our by But remarks going cancelation, in in last lot I that XXXX. no we is and active about half that Comms and snuck customer. into that of that's back but growth our the audio, has XXXX. half couple least, consumer longer of big bus XXXX we shown million strength the a to one AXB quarters overhang XXXX and push I now of our not have vehicles I million cabin and big the grow continue Last sequential business our deployments of one XXX socket big business tailwinds

with stronger than say a diversity We we've we've portfolio of more product addressing years ago. the our business. were had So applications, three

on we're growth we're business track and very, of think certainly I a a that good off start. to very

are that believe the signals was certainly business case. of we the XXXX is that that and bottom So

you. Thank

Vivek. Thanks

Thank you.

Toshiya from Sachs. from comes Goldman ahead. question next go Our Hari Please

Your open. line is

capacity internally something the customers. contracts peers at Thank have considering? thinking grow can your capacity The with ADI about And external, overall growing about signing that as well in Is your business? both about we couple should step again about talked of quarters? and internal guys you your capacity, the next partners. both as How foundry up over a is couple long-term Vince, think you. the secondly, externally or you which with for of magnitude that talked

foremost record that shipping certainly record think the and producing what XQ remember to be ahead. for products at we're levels. company, so an first you've keeping and I Well, we're got all-time will is

half not very, in in But and about parts very remind of backend. are the front continue procurement other in business, and too, the ahead of the levels, constraints end Our want which I also our silicon partners. auto, demand, the external well-publicized. to you, wafer Like procure the ADI, there revenue constraints we been industry, these all has with meet we investments most are our keeping of to inside the half And the obviously. we're supply so in peers across of particularly able produce

noting during think of building last been depleted shutdown. the I finished pandemic terms and summer since heavily which goods, else worth we've So something that stock is die in was inventory

So, successful wafers as partners. own been and I said, additional from acquiring our our internally external in manufacturing we're we've up operations ramping

So working deployments keeping of could I on that's you terms the demand of the we the revenue within. we think based certainly ahead be the atmosphere think we're this give where in I best now We're year can patterns that CapEx see.

Toshi, I that our going supply. subsequent expect quarters each is by would partly for to the influenced of able be guide we're what to

capacity our as of we fiscal capacity So for use on build demand be chasing I to how said increase internally. we we to to think we're think going and earlier, I range rest this inform guidance the what year, to base will ability our as parties can - get third as well

in not is conversations really? long-term And contracts, something that up comes or that then the

do we're than that on basis more depends. I strategic think long-term tactical, We but a say. have doing it contracts, let's

you Thank much. so it. Got

Toshiya. Thanks,

comes Our go Please Craig from next question Stanley. ahead. from Morgan Hettenbach

open. is line Your

you're efforts? most the for while segments but unfold? traction seeing the markets seeing I particular on that back linear cross know those lines? pipeline, just the update Any how you're product any just of synergies and And you about kind talked a selling along that little

$XXX worth we look that's the things, than size Craig, there's when into new have strong. couple at, of as going production We've that for just management I this very, portfolio, signal Yes, of a year, ways so, more the of battery acquired the we million and at doubled than well things since is overall, And look LT. power, battery of more this. revenue of side to Obviously, very side mixed example, as beginning. the the

winning, LT surge very in communications, products. as business, and micromodules our the the industrial terms we're we've board. terms data those strong for selling systems. and is In we're where Automotive, autonomous areas the in infotainment demand radar strongly tests across portfolio, instrumentation seeing the for additional cross And very, strongest growth We're of of and So generally in in wireless well speaking notable in attaching to as center cloud. got the wins

would So had with we I similar said, at X% has from a the LTC expected opportunity viewed we And historically five-year high how think X% that our materialized. single to growth that we digits to quite that's and in all beginning also what Hittite to double period. the

So the terms expected of the the and that's in markets story growth.

it. Thanks, Vince. color. the Got Appreciate

have question, Cheryl, last our can please? we

you. Thank

Our Muse Evercore. from next from ahead. Please J. go question comes C.

line is Your open.

follow-up to ago. on about I what question guess, a back to Vince, last you and kind quarter of to that talked go

below XXXX quite QX, a for I positive think automation while you turned levels. the time in first year-on-year still the said was significantly factory yet

So hoping I to think relative to of should instrumentation? where you acceleration you we growth in A&D particularly XXXX industrial set see are kind what are bucket. was XXXX around we about today peak, factory in be prior we automation, in as could and able and where level And your

mean, I'd give here. say some numerical just can give I'll just I headline a color. you Mike you couple

of in seeing, and we've we're are pipeline the is of But, the course we've need Mike, I going you in below products And opportunities got, as of but we're of prepared remarks, technologies the said I the given that what previous and market an general, want peak. very, the add? the well So acceleration still driven be think the obvious trends as that got, for very by resilience might to the a by result automation long-term to accelerated pandemic. strong, the

right. J., sure. C. you're Yes,

guiding If you a record look another did to quarter. quarter and we just at achieve record our Industrial business, we're

peaks. bit, a if previous of what's application above peel that. are within So two back we But industrial. them have I'll six clarify areas Only is you interesting

verticals. Automation areas one room peaks. we So you But those more even upside at as peaks, hit lot those there's four we more before have look there's well. being room for application to of all back run still previous still a the across if

automation think, to starting you're last I Vince long-term market, industrial, think that as a turn year and that said, So XXXX. late growth this and it's into into see And hopefully business year. continues I

been just on while been been strong. years we've the couple close C. in industrial, as last over share to gaining J., share Maybe hasn't we've the that, of and gaining market

of going you're share benefits the effect a compounding that Now with we've see to growing picked of market the up. the

the over for year. of balance versus outperformance So business I peers ADI's you industrial this will think see significant our

I pre-COVID for a upsurge this considerably it been well, got during think We XX% years. COVID-XX. past levels. healthcare still is I has C.J., growing remains above seven again, five boost in noting as And obviously the the worth at that or think

acceleration we're see market, pandemic so as and result to of a healthcare getting also capabilities multi-year beginning a of think, the the to demand I growth to anywhere speak.

in I So we've kind terms industrial a burn the so. the over been, engagements. technology but decade and where of an business, say, - long customer across I'd strength or benefits lot of of It's of our R&D last think steering we look a pipe now our we're seeing our area as

you. Thank

Have All thanks, website. us Devices. Analog right. the C.J., the of for Thanks, and everyone, call Thanks morning. joining be in interest available on joining copy continued the this day. a transcript will good and for A your

This concludes today's Analog Devices' call. conference

now may disconnect. You