Analog Devices (ADI) 18 Aug 212021 Q3 Earnings call transcript

Good morning. And welcome to the Analog Devices Third 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. Michael Lucarelli, Senior Director of Investor Relations. Sir, the floor is yours.

Shelby. you, Thank everybody. morning, And good Thanks for XXXX call. quarter our third fiscal conference joining today on CEO, Mahendra-Rajah. me the are CFO, With call, Prashanth ADI's ADI's and Vincent Roche, who and find investor.analog.com. Anyone release, schedules financial at it the missed relatIng can onto And disclosures. the follow The XX-Q which subject statements reports and as in other to includes and release, materials uncertainties are our and periodic information earnings about the risks our we're discuss described forward-looking SEC. to certain most and recent reflect statements expectations this call. forward-looking Actual of information date only results could materially the these as differ from as our of this as obligation by We update undertake no to these statements except required law.

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

you, morning And everybody. Thank very to a good Mike.

ADI of and challenging Quarter the despite record environments. a delivered earnings, supply second revenue So, consecutive

few over last to business industry, results will the face across a are as design Broadly demand Our constrained the to our XXXX. strong Despite We, continued was driven age. and recovery in excellence achieve demand demand economic like record semiconductors continues win markets. investments still our with supply far backdrop, performance our others power exceeding modern take matched many digital environment this end into operational shape as our continues with the strong insatiable and by speaking, years supply.

combination high next ADI close ongoing continue grow note of Fiscal the 'XX the bookings, robust looking and position a lean to in capacity and to on year. additions So inventories, ahead,

over Adjusted Operating record. EPS XX% Despite to XX%. markets XX% increased the again, over XX% the year-over-year. the So year-over-year. to margin, position a was and $X.X our sequentially billion and S&P industrial once spending our results, XX% elevated pleased performance XX% revenue our increased This billion. team's maintaining achieving increase margin equates very and flow gross All automotive cash our was margin The I'm top the Overall, months XX with the third-quarter free of in capital up trailing of flow XXX. $X.XX over with cash outstanding to execution. $X.XX moving our to capacity, free expanded

focused core at than invest ahead As our stay We presented ethos deep franchises innovation engagements accelerated possible. dollars of recovery. you growth ADI, of a capturing and more customer ensure market sector economic and our the that on what's strengthening which in R&D opportunities billion know, annually have we records, by

share recent let some Now, with me you. highlights

customers, business is our and segment and lifecycles. applications diverse products, industrial most product long sticky Our features across

automated and comprised test, aligns with electronic measurement, and instruments. Our of test a portfolios. test our instrumentation, This is Signal largest precision scientific segment, Power RF and management, market is perfectly Chain, high-performance and that truly industrial equipment, performance-driven

and communications in path Keysight, advance with solutions. units. will enable partnership O-RAN And tests. leader testers Importantly, to complexity all with these applications is from more The text sustainability. aligned instrumentation the the development the the we're for secular more of trends example, for to are This performance growing technical design ADI growth EVs required connectivity and radio Today, of and capabilities. collaborating advanced with fastest power-efficient to cost-effective

test technologies. already our customers to beginning XG partner we're emerging ahead, to Looking with

of there's monitoring living market business, the is positive where our human also the instrumentation an particular environmental innovations for globally. impact planetary Our to in highly reliable on improve need accurate increased One health. and a and instruments area have standard

automation. greater fine pollution. The segment trace measurement enables industrial next precision of particulate matter, portfolio XX factory market-leading largest identifying converters times better is of resolution Our

flows factory year, will further to supply robots cost-effective, cobots. with increase customers To last the our chains their factories, of and this, flexible their automate and and and are rethinking businesses connectivity. automation make and our achieve through Over many and more their of resilient, use them intelligent customers connected

chain This ADI's sensing power by wired robust signal three technologies, cobots of Specifically, franchises traditional robot. robotics a of opportunity recent and increases vector a wireless a leading new To is of Company and business times robots. end, sum our for that for and a require year wins, precision that our growth track its precision at Japanese including motion on control win next-generation record design connectivity.

carriers America, all-round C-band in targets. as European especially Vodafone represented. This North also, spectrum to our of safely now that look to acquired well the knowledge expertise ambitious beginning deploy several momentum continues to robots technologies smaller, are largest and workforces. system-level business. design setting our Universal smarter, broaden with scale a to newly to very addition, In and our leveraging globally, transform we includes tasks XG gain Communications XXXX deployment and are help carriers Robots easier-to-use domain in collaboration turning with We're is all-round where and

This that fully software-defined with a quarter industry's integrated we position in transceiver includes of first our front XG digital extended solutions the introduction radio market-leading the end.

the greatly Our O-RAN and power weight, of efficiency, innovative reducing thereby carrier radio expenses. eliminates these of to This emerging implementation and level size, simplify radio improves FPGAs proliferation integration networks. facilitate high architecture

this Tier-X is North share America across in deployments global in designed X return we growth supplier well and XXXX. at Europe. platform communications major receiver our O-RAN next-generation that to expect Our back, to Stepping business is G as gaining already a as

and design North has have of our America, with We geographic Europe, shifted our representing momentum and Korea revenue. mix sources strong largest

automotive. to on now Moving

management, management focus provide wired realigned unmatched our experience. strategy as Over zero-Cobalt all audio including management, seeing connectivity. can systems, Starting range our with and portfolios our BMS, market-leading measure key our this to battery the battery and firstly human and of battery the wireless accuracy deliver benefits on systems scale we vehicle LFP. electrification continue chemistries, market leadership power to last in we've business the We're and in-cabin to X years, or

continuous the battery ensures that monitoring ultra-low even ASLD remains incorporate solutions while our market. and stable in first a which Additionally, is functional feature safety parked, an power the

our we Motors quarter as this this BMS addition, is And models the BMS groundbreaking by platform. as this of realized prepares EV in technology data the of just In of wireless solution their for battery first to marked first beginning General the its revenue scaling OTM OEMs XX wireless powered the ship recognized power time fleets.

audio to and Turning connectivity. systems

road systems to signal market-leading continues demand complexity with cancellation. and As noise our strong increase, a AXB for there's very processing. active connectivity, audio

the while offer vehicle solutions the in highest XXX removing nearly performance reducing Our vehicle. weight, pounds per fidelity market

ago, of from solution. a EV and Furthermore, stay up examples standard its OEMs, in the OEMs capability to including year needs. innovations at now Top total, leading our road the a of global adopted just of its and the quarter European These a implemented audio continues vehicle at customer's fleet. ahead In interest is across intensify. in the in entire our over manufacturer. of cancellation XX gadget few are underway leading tremendous noise including doubled X connectivity can delivering breakthrough Hyundai During X focused active remain XX automotive X We're to manufacturer designed AXB more on AXB We XX our than feature just AXB AXB countless of a X as The designed value top ADI. Companies. OEMs, work

So future. in confident closing, I have ADI's never been about more

come. with and to returns and deliver of depth built get profitable decade, last And in capabilities industry-leading the we've Maxim, strong of aligned end breadth with our the position enabling will years stronger portfolio unparalleled the more us are only an with leadership that Over markets. portfolio acquisition to

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

comment My If exceptional and outlined expenses Thank ability which production. to third-quarter and increased Notably, broad-based reached of earnings industrial EPS applications with both up highs year-over-year, healthcare, strength double-digits today's demand the Communications with and with of elevated XX% our X% will you, exception by of results, the and in continued welcome special $X items delivered represented an end-market, business Vince. quarter, year XX% Good our underpinned margin call. revenue increase morning geographies. on the Revenue and adjusted across today basis, Operating for given first third-quarter wireless revenue subsegments sequentially for increased the be in and we to non-op look gross ADI time. release. and wirelines. at second and All straight while all-time expansion. press surpassed sequentially pandemic by performance revenue of XX% ago. this experienced XX% We represented year-over-year. decreased year-over-year, revenue excludes quarterly X% growth billion except a and

size continue XX% of deployments we'll applications on outlined this has and revenue AXB our with Automotive America. and as especially XG every in represented and across remain track are and broaden we communications to nearly year-over-year. double North increased to bottomed in last major As XX% grow fastest-growing we both broad-based Strength growth quarter, believe sequentially, revenue was double-digit globally, application. and year. BMS XX% our

on earlier, in-cabin As strategically aggressively Vince ADI been electrification shared more has and focus resources the human pivoting experience. to

this part This sequentially we quarter. the XX% As large represented IP revenue of auto select and in of are year-over-year. revenue and radar supplier. to million resulted in licensing Tier-X of a increased recognition Consumer European XX strategy, immediate XX% both

strength business an XXX license strategy entertainment wearables of licensing investment the $X.XX, which 'XX LPC in modestly marks up P&L, straight million agreement. expenses sequentially this now to strong quarter our approximately comp. to portables. savings sequentially, in EPS This due And mere business. the wearables, to across approximately run IP finishing which Op adjusted increases the full Our more in strong attributable offset the mainly XX was gives below from year-over-year, tax XX.X% XX and to million and at gross is quarterly were an diversify underscoring home a due to of expanded was including and and than quarter the margin And variable expansion, working, Xth Op us decline quarter grow cost a typical Non-op moving in XX%, an IP of $X.XX the optimization rate as leverage our of and of Fiscal OpEx XX.X%, margin to due continued upside year-over-year netted the manufacturing at our rate the agreement. gain. margin

of than second and weeks inventory process. the remain to low-end $XX growing the was support 'XX. entirely by now continue quarter and sheet, balance XX X.X Fiscal ending to million, sell-in. channel the our increased as materials add were order eight-week sell-through billion meaningfully for up robust of and quarter remains into dollars we seven million leverage driven Capex the stretches capacity of onto net and target, of to with XXX cash at a Days below finished inventory which as quarter, well raw an our book, of inventory sequentially, the we to stronger working times. the unchanged Moving by ratio Relative X.X balance

expect capital year And expected million automotive full-year midpoint cash each free in communications sequentially, And Quarter margin. Fourth We excluding above to model generated will a resulting we $XXX turning billion be markets IP up or bps. intensity share continue XX% free returned is to of dividends led to margin. fourth capacity the the cash XX.X% this Revenue deliver flow more on million minus to Over cash expect capacity XXX consumers now in the the a comes repayments represented a BXB plus In flow, as operating to $XXX months, and be or plus the free sequentially up trailing X%. our up to over our single increase to the record same we revenue, $X.XX increase margins for online. from over onto this $XX digits. we of billion, $X.X to period, debt At additional flow million, long-term be and licensing in after by the of gross XX% XX% minus guide, quarter of XX we X nearly via ago. And repurchases. have outlook: Based midpoint, than in

rate tax or inputs, the upper on is to based be Our plus range. toward minus of adjusted to expected fall $X.XX. these $X.XX our EPS And end expected is

I'd on Q&A, a give brief before the like to update So moving to Maxim.

working we're than Regulatory the initial with day plan no has have and granted. later after the Xrd timeframe. Chinese discussions the on been closing been closing within business Our China towards approval Authorities productive, We

conference anticipate over and nearly on billion a one, capital As our shared an billion ratio hold update on I'll we plans. to a to our before, the will annual more combined, of provide we start sheet, flow. cash shortly after it X we having close, return below of Once cash turn X than balance Q&A. free well Mike leverage now to the call

Prashanth. Thanks,

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

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

asking please moment you handset listening roster. We'll Q&A pick on your when compile up If a a question. the the pause are just to for speakerphone,

of Vivek question from first Your is Arya America of Bank Securities.

B my Are you And for have mentioned a you demand far How taking was that. Part much incremental sales be does under-shipping us Thank you. is capacity what X%, now? of exceeds kind next supply, you is hoping demand to Thanks XX%? cushion quantify of you right at? that much could if online Once question. kind proxy planning of are kind I of looking ADI help a by that the how in should of for year bring growth we and

Vivek. Thanks,

is expanding. the quarter, Supply markets. are the quarter. going up our So was for fourth All grow end X% demand continues the in sequentially and up another midpoint, X% book-to-bill we're our and X.X. grew we're at to We third markets above to also be across

look gap another you says quarter-over-quarter is it the growing math and well or that is increasing the extends way, So and backlog at into it XXXX. supply-demand now said

this just the long time lead gap it to takes likely strength of the is given plus year calendar view supply add broad 'XX persist in the is industry the into to demand. Our

second the part I color. Yeah, just think little a of Vivek, that of question, bit

objectives, term, optimistic you from Company. is And the connectivity, the leering demand, the for so our electrification, I an and we our and particularly business, the to automation given very CapEx support would also growth now meet this test. certainly right investment feasible outlook capital the of forth. now so right but we're to the about very, The backend and So, need just on across operation, supplies longer to in we're our and we've in on on say, tailwinds revenue it governor, assembly,

you. Thank

go to question, We Vivek. Thanks, next please. the

from question next Svanberg is Stifel. Tore Your of

I you could you. was little on more just a hoping Yes. Thank bit elaborate Maxim merger. the

expect wrong. the And timeframe announced. before obstacle the to still said you'd me that remaining to you you it I is, China close the only happen within deal? correct was said again, the can XXXX, had of You believe that you had summer related if that

Tore. Thanks,

towards comments, And closing unchanged. as So in and timeframe. in discussions our within closing the have confidence And look initial working Chinese the with said are our remains the Authorities been prepared positive we Regulatory productive. the we

will in as approval our the is across you of point So regulatory well outstanding that need approved the condition, this only China remedies. regulatory bodies other all at the time. I have without And remind globe deal without

Great. Thank you for that, Vince.

to Thanks, Tore. next questions. Go the

is question Suisse. John next Your Pitzer of Credit from

Thanks Good I pick up your to the morning, guys. industrial about wanted business. letting comments your prepared on me ask for question, Vince,

that of in You're now quarter third consecutive of in business. the sort going revenue s record

concerned is fiscal was perhaps more You that cyclical peak. than have business up about -- 'XX which excess they're for other to a that back year-over-year, last sustainability. But represents investors, lot to of go but before April XX% -- the -- date of structural but to the and date, year that

curious I'm by bit cycle is business. the a as industrial sustainable? you think kind " little " being you break apart of driven And What more your stuff versus so do that's

Yes. Thanks, John (ph).

moves to First to I need and healthcare, everybody individual whole segments infrastructure, energy, automation, industrial business, foundation foremost, and example, I'd is our renewables efficiency and instrumentation as grid that built stabilization. it like on business about, charging that of the like remind space many and ADI's talked for a for market

the very business a And got plus. that sticky So you got. lifecycles customers. it's XX the socket are a in tens very, thousands many that's And, diverse business. we've very, It's foundation. highly the of of We've know, years

time, terms for decade increased a grow focus a shown fairly long we dramatically of share getting that years go-to-market really activities, remember last market about the you could R&D, those the been who have in ago, we've there. of ensuring we ADI So, And our followed in that board across that business.

engagement, and investments were business portfolio has the stalled I there. we've lot a propelling secular amount the the terms programs of activities, But a in got year, concurrent think are been trends we've that that secular beyond the there's there that customer know we breadth these all do catch-up think so of of were drivers R&D I making that So the certain last of that market.

one add I'll thing, John.

right. You're

markets in Of go we our and hit all with seen year-over-year. outlined, you've that, double-digits below next in our given won't they for comments, question. our 'XX another pre-peak As marks prepared 'XX increase see applications the all trends did don't strong a of that Fiscal levels. do Vince we'll the We still are record X record X that outlined. them think to Vince why And

question of Research. Bernstein Rasgon is Stacy next from Your

guys. pricing environment. had questions. a Thanks I for Hi question taking my about the

just your supply And to do the are curious conservatively? Given you you and your Are situation, of take up. you tight some seeing prices seeing some the more of guys to pricing environment the was able that? see starting hints to trading that? actually pricing Are Are own peers starting environment. shortage we're you down I in what

Yes. Thanks Stacy. question, for the

say to environment. that would pricing we margins, that in we've made for we're decision advantage the is I increase a but so pricing take results structurally of on net-neutral. printed, this We're not by increasing that customers our cost So not passing impacting

Our and model is plus. that long-term unchanged is XX%

to growth. is to necessary So the make drive the revenue goal drive the and revenue that trade-offs really growth are that

Focusing top cash and on on margin the free the delivering flow.

is of quarter a gross don't back XX.X% you, license the you had a if in while record margins, guide going gross that be the terms in third out So we margins. ADI guide for the gross the we impute to impact, from IP to if it probably margin you'll you fourth we And gave see, quarter.

helpful. Got you. Thank it. That's

Thank Stacy.

question. Next

Goldman of Toshiya Your next question is from Sachs. Hari

I the morning. Could drivers be How ask the Europe, are business. next a you growth recovery key for and about to for year, be return forward? it Thanks America, sort being Thank sort recovery China? the fairly assumption what's question. wanted forward. of shape should when you you to recovery? going Vince, it Is of about talk taking about Hi the guys. 'XX, XXXX being for about the you a and Korea talked And talked going implicit going gradual the North making the about to of comms guys quarters? we think growth couple you a in of V-shaped you. over Good

to X. going split into We're that Thanks. Okay.

just speak sequential quarter, happened what I'll about that Let quickly in fourth the track the call talk and then that broadly. on deliver second more are and quarter. we me a we on a bottom we basis. We delivered let third Vince would did on grow the the In too said for reminder, that to and comms as quarter

we're strong to and centers data for two really believe 'XX. between we sub-segments we strong growth as remains there, expect and to carriers wire continue So both well-positioned Fiscal into demand the And And that do the the in by think quarter the the upgrades past China North really driven to quarter. growth the lumpy, their do rest We third was bottomed it's wireless, continue always in America. world. of networks.

that to to we're about go I'll more represent what then forward. hand should as Vince off also of kind us So we seeing. speak for momentum growth some And broadly

confidence bit I for why a I being that I have XXXX about unpack a strong you. growth have can year? the So Toshiya, Yes, maybe do

in mix is of seeing the from beginning to comms' rest XG. our So world benefit I emerge revenue a think the

the rest of of China the of outside So today, Xx in is world the term. terms

number X. that's So

that that happening, times think to good a we're various step what's beginning elite we're would We've well just in I an remarks XG continues I make beginning at their mentioned business here. look calls Revenue's about to it's in beginning market. to represented in life here looking you Europe, use are about and with in we see that are O-RAN, as C-band behind, America, see indications several the accelerate. and If Vodafone of carriers also before also important in that prepared signs beyond. be to of customers geographies very beyond accelerate consumer in the revenue. part indeed there to player XXXX is And well And during say, I'm having the -- here it European it'll We've region auction's I all a of Japan, more talked to the classical XXXX the complete. conversations O-RAN will auction And offering. major driver. a their but really revenue happen XG XG right the but talked about and North of then be systems. but Rakuten

scalability, days, configured in enabling private it's but and time-to-market, savings, factory are for So flexibility, on, example. the Networks cost of early quicker so to characteristics be environments,

sense comm, beyond. that's that So of gives you all but confidence in XXXX a our and on still the

Thanks, Toshiya.

Thank next you. We'll go question. to the

Srivastava next Your Ambrish question from is BMO. of

folks. a I have about thank Hey, you. morning, question Maxim. Good

capital allocation? path what playbook Thank and changing through, the do before you the about would think allocation or for and And about go who has been I Do get was capital shareholder so If have you and be a you would fair how say been look then question lot, my opportunities? Maxim to not think investment very but on a continue it's Maxim go a M&A you. you have you case sticky base other think Maxim, you I ADI question at back to not so you to with this ask.

the helps of portfolio our return to cash really the that to invest just R&D, in shareholder-friendly we today that, and commitment help allocation towards heavily that ways that in policy a traditional me let do spend to to customers. BXB not because important more capital finds I and we to So, of flow we technology to allocation the pointed think very how first us consider everyone remind capital is call this, think become that And customers. a is This other the organically more business as free markets. is inorganic we then have XXX% about really response is or our it what is, although kind policy. definition, But

debt. not X.X level do leverage to reduce today. at are We need we So,

deal all an would changing was So Maxim in have the look confidence not in environment, be to really environment view the we despite our our a on in have as -- free past years, return or shareholders we've an increase the about either cash happened, to dividend. X a flow reminder, that XX% us dividend. having think buybacks I in And that of through closing to incremental not where a go that through over for averaged

a for So fixed investors the well healthy repo. commitment income-focused as very our as

I think hand talk to our we're an all-time year more high on about the this Back one terms to track activity. the of repo in there. to for to M&A, I'm that alternatives going Vince

Yes.

seen So years, as always ahead know, assets, the as view our things you've to remain and very, acquired that you the over years well. in on we've very high-quality be will

Okay. Thank you.

Thanks. Ambrish.

caller. Next

Your next is Barclays. of Curtis from Blayne question

Hey, good for the Thanks taking question. morning.

BXB tends is at I start bookings. or as flat segment of gap flat, supply starting guidance you you given comments guidance, curious level? settle you think it's Obviously, strong you looked Just fairly curious industrial really to if the that Is I'm look probably the on slug see at you this just are to demand as had the to gave. kind this. at out

That is purely supplied. clearly

mentioned I quarter that second was that's the markets. first the X.X all and for across maybe over think or book-to-bill question I in

for they to products year Fiscal markets expect other Mike on are of to we one track an in FY to very a hit in indicated calendar continue to record all industrial that be have Q&A seeing 'XX the across all-time interest another that likely high collectively and So the 'XX. strong in for were markets.

So very supply-constrained much a environment.

just up the I to margin, want Prashanth. Thanks on and gross follow

I indicated So you gross license the be up with think that's impact would and margin as the well.

And was from couple of linear. utilizations there how more I maybe a as the as is another talk saw about just you margin a quarters. over that and pulling benefit. you So of gross benefit much the curious then look next

Yes.

I presume guidance. with respect to the you're asking So

us have So not LTC are the from manufacturing some but we're down gross phase in record closed to we that still to coming final environment new opportunity the savings as increase. going time quarter, gross their no hit because margins haven't some We of the are to tools margins, operation say synergies, Utilization the the additional of guiding typically hit confident terms we're the Fourth some provide to level the we a into think of a up an fourth California. get is Asia mix the of challenges for we would I in holiday shift is in facility shutdown. of and also allows out a that we Quarter. going as bit closing location. supply headwind new because have level Fourth pretty soon And I Quarters a of have to

to which manage to of So, got we that, us we need a through provide as can work little around. bit that well for headwind ourselves

and got worlds XX% environment, for number margins been And diversity Also, that with very come we the for the earlier a foundation has portfolios, very, where the We the paid well individually and of customers very, doing contributed from they innovation. We on said our I know, said steady. pricing X.X%. You call, XXX,XXX the solutions this we got It's as are, stable, being digital our premium. customer X and very gross produced products of our before, best performing products very that. between physical sales than I've think less the the

Thanks, Blayne, for question. that We'll the to please. one-part two-part, caller, next go

of is Your question from JPMorgan. next Harlan Sur

inventories execution. results below Channel Good X-week to X remain morning continue congratulations quarterly strong to the in the target range. and on your

believe have able Any from of customer programs. those customers mean, seems chip build signs the are a be as You wanted build your I customers do views to when but you I'm guys but hand-to-mouth to it be in And supply inventory? your wanted monitor position can also the that I a views. that 'XX, least to been is perspective, consignment soonest to get for sometime I to entire in get unlikely appears start sort that because inventories? calendar at inventories on direct chain to will value well. assuming

Yes. Thank take I'll Harlan Sur. you, that.

to couple is but balance can't materials raw exclusively our and year-over-year comments sequentially, We finished of on due up inventory. Inventory that stock. good in a on a sheet width. keep first, So and is

or to the it's when goes out and channel, it the goes either into of So it customer immediately. it channel produced, the goes then

as in struggling we warehouses, So finished what's for build And consignment happening quickly there. that that let's their significant business auto is also seeing customers pull goods books. auto but us the we well say build through on and Roughly, to business to our is direct inventory that's those gives demand to as no ADI within a both which in pretty that of warehouses our good our visibility amount inventory opportunity on for are are channel as partners.

still the have and in on some we in we've capacity much prepared capacity. see in as our don't year very some this sense 'XX. it's talked of into call to remarks calendar by sometime the is coming investments and balance making normalcy I throughout this supply focus ability or So that significant until hand-to-mouth increasing

you. thank Okay,

All right. question, We'll have our last please.

of William next Securities is Stein Your Trust from question

Great, thanks for taking my question.

supply in coming quarter, You given to backlog, some maybe to a about you. the inventory quarters? Thank in these bill, automotive, lasting. quarter you down sometime We're about etc. whole the anything you we sequential that significant as growth of When which talked next constraints we well the different visibility just some next for this about up consumer, out until business 'XX, the 'XX, we the But Should the several to the talked look year? seasonality about put well. not typically, think of that's debate rebuild as January and industrial, very for expect sequentially level supply ability to quarter, in into should to coming

of a way seasonality supply. is in concept is say a by that revenue the to meaningless environment Yeah, I today's because answer would completely be dictated to growth really bit think that

likely what the an can the And be to is need QX over we would couple there's print capacity Again the season. through we've got get quarter a a of So us. offset. for first we things to little of allow that holiday be in now the quarter by driven first, online work more to fourth bit

for adjust the the factory holiday fourth that. when for that's season. need is do quarter build for to we the capacity consumer; quarter key they So And

to consumer in quarter because little impact So fiscal it they that don't always of for a holiday the just the there's our as going be is need first seasonality period. bit

to that's Mike, will I want that? add anything maybe to where you finish. So

but not sure. seasonality talk guess bit back, right. of if a you're as Yeah, I meaningful a give history lesson. We just about you now, you being look

again X% over If consumer, maybe in you I right, and past information look in would say usually years, XQ slightly this be And the I it Thanks down section. additional you're more in flatted to copy everyone times, in past our XX Results interest morning. Quarterly and which that, now also on ADI. will all in And say would the times, website. it's available good transcript XQ. BXB thank good normal with can A good and I call joining markets, for or your our in even down and will for reconciliations the call joining the times want of be found continued I

Devices Analog Conference Call. today's concludes This

disconnect. now may You