Analog Devices (ADI) 18 May 222022 Q2 Earnings call transcript

Good morning, and welcome to the Analog Devices Second Quarter Fiscal Year 2022 Earnings Conference Call, which is being audio webcast via telephone and over the web. I would like to now introduce your host for today's call, Mr. Michael Lucarelli, Vice President of Investor Relations. Sir, the floor is yours.

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

could For are The described with release our information it about expectations from can as to at anyone further forward-looking release, law. in differ certain we're these periodic by of required results and On undertake SEC. relating and reports update these statements, risks as includes our obligation except which uncertainties We no investor.analog.com. date materially filed disclosures. financial forward-looking reflect the earnings schedules as to who materials the information this find the the call. to as discuss statements, to the subject missed Actual our and you other statements of and

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

insatiable expansions, bookings second good a supported of revenue, capacity which our our record as for from Thank half. I'm position strength, a you, Moreover, ongoing driven by very profitability that execution quarter us the demand and another operating Mike, enter favorably accelerated operational and and all. morning robust of backlog, continued synergy Well, you by report to dynamic macro position amidst delivered a we're products, very pleased ADI environment, earnings, strong we to capture. record remarkable and

mixed the wave And to next growth broadest business the At are wave. closer hyperscale It through model an revolution. bedrock and this revolution. We've increasing our and, Today, more segments year double to was and exceeding our $X.XX, forma Impressively, was how period. with at XX%. Adjusted digits we of to on adjusted all gross execution. high was of our the end XX% to Revenue how and billion, and I'm outlook the high Now I'd up XX% up broad-based pro Overall, EPS around basis. margin solve end our our results. to of XX% excited processing computing characterized customers' problems Semiconductors at summary Strength indeed, Investor of this opportunities operating while outlook of what nascent our like margin $X.XX very expanded is markets ago the above with a year-over-year innovation-driven resiliency. outstanding and with intelligence data ubiquitous reinforce moving to industry's a strategic by year-over-year. shared pushing the the M&A. be will ADI, analog, rich that's sector our we're decade The power investments over evolution built highest the improving on and signal where of born, enterprise center and Edge robust and organic both our performance last both Intelligent is connectivity, enabling the also ICT our from are we're Day performance team's next in core, portfolio. over investing and is pervasive the evolving sensing, the and edge.

Our components from and sensor to offerings nanowatts to increasingly to cloud from kilowatts, microwave subsystems. bits, span to

has cycles. we is our and X vertical in us of broad level growing with reflected an $X.X these expanding billion challenges our annually. necessary. the vast average enable This, technologies, analog, with by market our solutions software. to product mixed These and this increasing The expand teams Xx integrating engagement core customers' franchise in positions their number scope R&D that with and high-performance our also wave and and gross success, To SAM the over more customers, meet innovation development where deliver us customer in deep digital products applications premium earned power. ASPs signal, is industry-leading innovations, on algorithms RF provide technologies industry than pressuring along margins. with investments that and complexity our and analog our achieved in of We are Our of of of arsenal focus complete and are disruptive strengthen the investing dramatically levels we're innovation the and support next ADI coupled our awards more

is Industries Starting of manufacturing telecoms, generations with applications is Now how host touch few a technology our let's concurrent look fueling automotive. our markets. just energy, a are health trends, This I'd care prioritizing new and driving and of now. intersecting with growth and secular to on like at like transportation, digitalization.

is ADI for in Here, the management market EVs. leader battery example, for systems,

security. offer and safety the of levels solutions customers management accuracy, battery or Our highest BMS, systems, reliability,

Our benefits and wireless offers solution to wired customers' configurability to fleets. content per to our innovative market scaling our rapid This by pack continues solution traction enables adds and BMS up gain battery system the but the EV of Xx. also of all cost-effective in

for XG where is majority across a in the communications, to signal the Moving with market ADI ecosystem. radio leader share chains

and networks solutions Further, transceiver end innovative generation software-defined architecture SAM across by Xx. to and used includes and radio these XG traditional Open improves integrated flexibility and well This allows an as the a cost system them reduces front power be of latest grows waste satellite as RAN digital fully emerging Our our networks. efficiency. LEO

care. health Lastly,

dominant imaging, photons bits the top used module world. by are with our number medical to the CT a players in like in share have for Subsystems We position example. X

the And Our in capture compared alone. solution to components images the decreasing dosage. the just highest-fidelity radiation it us offering to while allows process, delivers SAM Xx

years. the across expanding to edge creates us addition X revenue trends growth, for these Maxim amplify next combination billion In a to opportunity secular the our innovation $X synergy over

to leveraging opportunity from portfolio. customer first pull relationships arises our The our extended complementary cross-selling, through

of together the maps And possible. power Analog road fusing these boundaries to what's Second portfolios X management. premier product new the is push of third is

capabilities, of competitive a our Maxim power and Here, our pool. the cost to creates combination with talent engineering adds breadth more increases portfolio

we result, the to SAM Edge ahead. we that billion mid-single-digit bend growth model growth new our revenue of of of opportunity XX%. double the moving X% the a to and upwards, The power to our proliferation great unlocked additional our years rate from revenue look our confidence As and in Intelligent me $X historical power gives synergy can curve

our which our applications customers. to to that great product derived revenue like products Notably, from model. longevity of decades. the products these resiliency contribute no of unique our is characteristics thousands over X.X% delivering streams average, high enduring have than a I'd It's entry that of of diversity and revenue business. a spans the effectively a barrier strength. support our products of revenue. On XX% unmatched. speak total of Now create XXX,XXX to The for to shipped XX,XXX of more, is SKUs, a more portfolio source recurring little decade life And individually our is business We of or an

to micrometers. and we market. a same model economic create this of with best nanometers complexity a our broad At X to time attain of us packaging innovative cycles. of the strategy technology to necessary through creates strategy Analog This to Finally, network solutions manage hybrid manufacturing a X diverse geographically external internal the provides from operations the partners and array fragmentation and utilize diverse

and adding into and test swing our These internal As significant our we end, grow our build capital factories the manufacturing to capacity of and more this at doubling XXXX capacity cost-effective Investor model. increase our of internal we're that our will revenue. to network in robust mentioned Day, we're across over investments operations investing our output product and year to operations. our a To XX%

drive customers, So through of the detail. at best society. with and increased over are who the in take innovating a that I'm leader you to financial it is to ADI and as believe I us value for our will going And pass edge, ahead Prashanth, closing, shareholders days that, still in our we

Thank you, Vince.

and welcome of great welcome customers demonstrate my add many last and action. hear me you our It was it Day our our exciting many of in so our at call. from month, also to earnings to Let quarter was technologies Investor to second see so to

strong As model, impressive quarter very accelerate revenue, offset excludes reflect our on aligned outlined and to be earnings. will adjusted products highly revenue, multiple These items synergy well basis, with printed results leverage manufacturing ability an record We as today, comments special increasing which of another my for and as release. differentiated demand with the our hybrid exception in inflation usual, profitability trends secular today's capture. our press to

consecutive BXB our ninth growth quarter end $X.XX finished above Second and high billion revenue marks with our record This fifth quarter initial of straight outlook, exceeding expectations. every market end revenue of sequential period. our of the

double grown at now XX% hold of with our than applications million for the look by performance strong with represented increasing the our our content most revenue in another We automation, hit end Industrial, the all-time high. instrumentation and care, market, digital and diverse and So growth experienced profitable broad-based health leading test way, market. underscoring XX% where year-over-year first another number of $XXX In end digits let's revenue has X Automotive, quarters. Industrial record and straight position, position the achieved growing which XX% more markets. secular all also quarterly we revenue, eclipsed for represented year-over-year. X BMS, time. these

market the our growth We design persist, and wins. the in continued momentum expect to strong given

quarters. our Vince Additionally, In path together positioned represented to ever-growing XG for In solutions, of their automotive, on typical devices. and products deployments, we insulates capitalize straight as has optical grown to, latest represented trend. which robust of for the our and growth and make the fluctuations automobile. up of associated across the our with with continued wireline, to particularly ideally Communications XX% as fueled for our is product of on power by momentum. demand hyperscalers consistent X function broad-based ADI's And us and North lastly, invest remained secular experienced revenue revenue better gained meet bandwidth. the virtualization carriers which AXB demand which transceiver, growth. XX% the consumer generation and RF from GMSL roughly in now breadth, digitalization of wireless, portable portfolio the strong demand growing customer growth is This spoke America, and PCs year-over-year XX% a

months sequentially and owing we've quarter points operating the basis $XXX in quarter, increasing our basis hit $XXX margin $X.XX, was second in realized sheet. anticipated, approximately sequentially the million was billion Favorable the are our adjusted XX.X%. the and than quarter faster We our key and over of was on Now transaction-related growth $XXX product outlook, cash of high to million, year-over-year. the about resiliency flow record generated and $XXX XX% fiscal quarter look onetime was enhancing the of X% to channel strategically rate long million XXX inventory below of at to look months, expect EPS second for P&L. and low as of Record points to inventory 'XX XX% the cost million our of drivers and during X% synergy execution. support internal Non-op to model. to long-term to savings in OpEx were exiting 'XX. investing CapEx mix, quarter XX.X% revenue of that XX% of expand fall-through increased we and the XX.X%, and revenue are free percentage million billion we term. the revenue. 'XX reverting to of cash X% digits of XX cash XX trailing Included while X% trailing amounting we in of end synergies. points grew at over synergy basis of and X-week costs in the points To revenue. we If And achieve XXX came target. end to the flow, the of over increased a Day, up be accelerated growth XXX equivalents. record better the versus high basis than free increase. quickly capacity a sequentially or the the or Days X- more were target XXX expenses at XXX utilization Gross To XXXX. to for tax we hybrid At quarter to over our back $X.X cash All before the revenue. recently $X.X year-over-year. balance of revenue synergies CapEx X% Investor And the told, the now $XXX to single remaining as on $XX ended We end, and stated fiscal flow margins with million a remains

to billion of activity to total our and Given look of quarter. pace fiscal market accelerated our repurchase year. the to close repo $X.X $X brings accelerated our the we since buyback million by maintain approximately the commitment Maxim. And $XXX weakness, this This billion during recent quarter our we the second achieve end this share

target return. As reminder, cash XXX% a we free flow

a will now with allocate to third XX% And on our to support to buybacks CAGR used the minus or plus remaining count share XX% XX% billion, cash quarter. expected cycle, We outlook million. the reduce dividend $X.XX for cash be flow throughout of the to annually. Revenue for is free $XXX to

grow all expect to sequentially. We end markets

plus is these Given plus or between rate our or bps. inputs, to expected is higher-than-normal Based EPS XX.X%, expected expected and minus margin minus to And be adjusted is annual our $X.XX, merit increase, be to operating XX%. on $X.XX. XX% be XX tax

economic strong growth giving confidence indicators trends, our for of remainder demand the conversations for customer While into current we our XXXX. likely and remain of very upbeat, the very XXXX and continued are remain mindful us

our cyclical accelerate Importantly, downturns growth synergies and leadership numerous has result markets, growth. been never hybrid manufacturing believe long-term and resilient a ADI to as additional of in transcend diversification, vast model, we positioned better our secular

back now me Q&A. to Let it the to Mike start give

Prashanth. Thanks,

Let's have our With session. Instructions] [Operator that, we can Q&A first get please? question, to Katrina, our

[Operator with Svanberg question Our Stifel. first from Tore Instructions] comes

little especially of on perhaps end for hit line to to would of XX% exactly operating of towards My that? about output for a bit you Congratulations the time what elaborate swing question talked growing remarks, And the results, you on is is increase that Could on you Vince. number? when your sort XX% record capacity revenues. the all that margin. Vince,

Yes.

from or cross-license And our year we and we're months. of So XX some foundry the micron been operations technologies as course, you a X.XX in investing year know, thereabouts, Tore, internal next manufacturing we've doubling there upwards, over our output semiconductor partners. of or with the

many meet when ADI So you will ADI partners, on inside to we have a depending about and foundry between so we our we that external in the in, cycle of because swing, the controlled X place terms the if utilization what are of and move managing cross-qualified or fabs as that utilization, internal XX% got talk from the another, being we're it demand it fabs ability means like, part declines. technologies to process surges to able by

with Research. is next Bernstein from your And question Stacy Rasgon

I wanted to ask about the gross margins.

bunch in mean, And your potentially about a to actually either room didn't closure? these up or go all of I the is for the on at side. like, margin revenue impact there mean, we You it revenue kind I the at the levels think but mentioned Maxim mention to you outlook the reprice current offset driver had guess, portfolio for drivers, there what stay here, pricing after trajectory gross how levels? even to from I inflation the has pricing forward of assuming do trajectory? current,

Thank you the question. for

passing rest of with along we, know, costs. the along the industry, higher you as the So has been

take environment of to using our but been margins. focused have this not We advantage gross our to really on customers maintain very

some were So in the of to timing in 'XX. 'XX, headwind we has from inflation really able we had abated enact versus pricing. This the when

mix So benefits. really, see really the percentage fabs great mentioned, the synergies, driven, internal in the utilization percentage and gross growth gross that the and as by margin some being at you I margin is

overall I revenue in think I industrial of hitting mix. my about XX% talked prepared remarks, the

we to to So we for weeks just model the forward maintain typical are trough, couple look, we our floor. very a in a that be back, comfortable going able feel updated a XX% cycle of and

trade-off the with on Beyond opportunities expand and -- to at margin. right gross line that, the trade-offs to top will continue we some make

leverage down So the the is the for all the let revenue team growth cash deliver that and focus drive really way through flow.

pretty So to incredible for significant encourage already look I expansion. margin folks wouldn't numbers. These are

like biggest fluctuate if from mix stay But around? trajectory, the of revenues gross just stay will driver Will are at at the margins here? they they kind or least where be the can this

way about right think the it, that's to yes. Yes,

You're right.

synergies, $XXX side. margins of at have be of it's million going look cost sold of build at goods also that you this then and If forward, the we some our on utilization point the mix, will

margins balance out, Prashanth flow. really cash As free gross operating margins and laid we'll both to drive

next Vivek is of with your America And question from Securities. Bank Arya

mentioned you what sense sales all China, that the under-shipping think say the it's look demand? for a what the or is X end we macro like of Vince, are we Because over- harder XX% this indicators the over X look at Prashanth strong quarters. you're very I'm about curious, grown think X the how should you look all outside, have gets last and early signals rate? over, another be? I in or strong reconcile, growth do And or quarters to it that then narratives. believe, to you industrial the seem Europe, ADI's these this in turmoil what industrial we industrial get Like and give growth normalized do whether you at growth number be look could from I at X they but kind at turmoil to right, for

us a now? for industrial give right do about your So business sense specifically how feel you

Vivek. Yes. Thanks,

focus. that in highly or So industrial first XX been very over engagement diligently We've decade a with perspective investing from years and perspective, an from the foremost, share last business very, it's customer a diversified R&D been clearly. a we've gaining renewed

is capture X% that us our from on activity Day, would the say said new during SAM better portfolio, to we Investor model puts more question the to Maxim in combined even to And I growth, and particularly well the -- think essentially. power with that we LTC the as I stead XX%. acquisitions your

beg strength we done, our we've somewhere growth I confident is I conversations right customers than that ever be IoT, they're going think, into given like, think of IT the Industry what if the our a a and of last the of just X.X, now, have in we colliding partnership a terms for all over stream portfolio, in moving signals I lot new many industrial largest a had industrial obviously, your to I are driving technologies. so conversations future, think cycle, we of feel We're to the our over of more industrial is with And I quarter. customers. things there to time. lot different. have the in industrial OT, and So on. And with customer convey the personally watch, a trying you or And new X.X, about engagements new of us pardon,

So that's of one, get. X stream obviously input we

The other us signals applications look on think for so and the Well, knowledge own indexes of machine are customers' is builders the and forth. end with our coupled the the source we PMIs, of so our at, obviously, insight to I greatest insights.

I'll just maybe Vivek, add.

everyone, I 'XX. remarks, broad. to industrial the record growth said our applications in to another in think hit in 'XX results to be in I hit it are track and clear was but record All on

is Evercore. with next Muse question from C.J. Your

I comment guess my side. a on

these surprised you Day. Tom Analyst and at Brady Papi Big have With I'm your results, didn't

So next time.

to my So question, peers. much your your results than are better

continued business, of mix? supply, Your year into up outperformance? how the to share your [at] does peers Would incremental and of ability BXB about vision as there. mid-single that right market going your you half hear future think digits. your love the next, this do inform there? for Is And a think to your versus you outperformance second source part about the I gains, XX% think, How thoughts then that

Vince. -- then over Maybe start and hand I'll to to Yes. hand

we're our working investments well partners both we additional side, from So capacity are on the internally. on tactical as making external the as getting

year, to look little to out I at revenue pricing over So about mentioned continue why course the the the the least remarks, this early sequentially part continue We that year. has to bit that you'll of through is the for incremental grow and see prepared been year next talked a into us of play which growth. in likely to

all be just end So has that's of again, It's very remarks And and end geographies. seeing very the are clear, we across demand to it piece demand And markets and certainly spread said but a evenly in I it. strength all been my all across broad-based. applications.

we well here, we Vince's So Vince of customers. our some our feel very more. spot really the and add is here all maybe do to positioned feel, technology And sweet then starting to I'll hit do across to remarks pass to

of little your markets, the answer Maybe just try C.J., bit a on question. to and color

the now at the and -- years, be on this matter double-digit as So actually, communications and strength sector us. for as of industrial, terms in applications. we on years the engagement. for will get health growth the center have that so see area where And wireless just data an if high-end customer par many continuously, tuning It's example, run X, Aerospace been on that's the level. now. is few of a our care I an in no I now, for beginning the great interestingly, revenue example, to great of vectors all we've consistently cycle playing in contribution. business we in been the basically defense, last what X next And the growing But area, we're said, out to with over R&D position the $X be XG. pick a going the wireline billion to rate And is in

kind So half-and-half. of it's

buttressed design-ins cancellation, the that to a this run in on more we deployed, have virtually a revenue rate electrification. in-cabin the electric companies at of [XXX] on see a premium all and experience quarter are now, again time. rate. of being at run great lot sign systems we more point AXB, We're car that a also area. strength, bringing as wireline we have that So by the technologies story Maxim with source a Automotive, And

see a billion-plus the trajectory that foreseeable to we in $X on So future.

complement Prashanth prosperity well vectors of just and terms as So of has of examples growth to the in narrated what some the that's for the company.

BMO. Ambrish Your from next is question from Srivastava

then You breakout? bit but talking into these of question said a we're that the when synergies, related on basis? the How cost modeling go-forward what's we a I kind 'XX, that exiting surprised about you is higher numbers be And as peaked said margin, had be to a definitely haven't seem should inflation, was gross Because -- where little they on but to year. this abating that we through -- Prashanth. they fiscal I go than they continue be were as the I catch inflationary the year. headline we pressure last -- have Did maybe would right?

would well. So some color as love comment on that

Yes. me clarify. Thanks, Ambrish. good questions, for Two the opportunity thanks to and giving

talked, had how So and first, to strategy. synergies we fast get We great on synergies. from that against on to that some when had did hard, and to seeing and the Maxim was learnings closed we that us move you're LTC execute

to entire captured committed we the Investor -- So and as Day, we'll our target exited the will that originally we to that following goods million, coming goods, raising second more $XXX we're little number balanced hit exit and piece quarter. that that and million as at $XXX tilted said we be And of we basically out of first between cost of or XXXX. towards OpEx. sort $XXX was That of cost a million we

of to chance for to forward, you me question I about giving made, the that's as look balance So the on thank you clarify. To your think comments a how that.

margin. our opportunities have used gross maintain We pricing to

but looking to expand So really clear, as opportunity be to gross to an offset. as at way margin we're a not pricing

It XXXX. abate bit meant get pricing versus actions place. So when inflation, in longer I in took inflation a the little experienced us I those had that to said historical we

cost respond of you them through. benefit current industry, do see course, the in rest that have and we coming sorry, see to continue now us, So like by the year. those if increases to -- neutralized in price increases we the the quarters, pushing of expect And

that the maybe this also rate? kind reported the utilization that So for go-forward based mix expect of a pricing? quarter you and in there's should no artifact bounce around We on XX% on level basis,

that But gross good Ambrish, Prashanth earlier, XX] of forward, XX%, feel as does go plus/minus, this if it in XX% as Mike. talked said, then that. have I mixed And drivers. you a going like that pretty that we element also [X you the will forward is had will around, bounce outlined, help Yes, X about COGS margins. about utilization

to again, make that caveat growth. the I want on focused are clear the With we it caveat, everyone, for with

flexible it to will little makes for be that. where us more drive do to line, So a sense we top

modeling the you to I a getting on give want wouldn't the management So gross We've folks flexibility mid-XXs we floor drive team need will line. the top on in given the too and they laser-focused margin.

Right.

You've been very consistent about that.

is Chris Citigroup. Your next question with from Danely

So this forecasted And on Can revenue years. growth, talk the couple is your July that's that of about why growth talk a with you for is all in because slowest of happening? revenue sequential than COVID shutdowns part increasing else? faster X% is that, or or something And with sequential the assume on growth. focus this of all capacity growing would your then as X% I capacity, revenue

are So can coming as quarter lead we this well? times that the assume in

Yes.

by will through we've we constrained year. indicated see is sequential sequential But growth Chris, So the that capacity. the growth

change which So we saying look we've meaningful been a for the get for while. more as quarter, past a third

ordered to prior know generation been when the queue. comments, you we've are and very if in, we've back look our We in coming they revenue quickly. go equipment. know We the at So tools that the and position those fairly clear

that the our was our And we are And exit produce. now. year higher where question? ability what will all to run outlook much we driven is second the rate So that at maintaining we a than are by

Perfect.

Yes. Chris, thing. I'll X also add

sequential business and BXB added about, is, the talked really sequential. quarter a happened in sequentials is call pricing had the we the You're by I'll We in back look right, you volume third sequential on half first the it, and decelerating the driving the capacity and out half again. added pricing in we're volume. by that's the XX% that at our in And the we now. in driven Pricing at over year if to fiscal now, year-over-year growth. model now look first the of don't our that and growth year, growing growth of What is basis year-over-year, really zoom and half

franchise. this fantastic and a I strength it's think, of it So result, the shows

Yes.

can versus I a growth of that think data XX-XX. units. sequential give we from basis, it coming The point as on think is everyone pricing the

sequentially the So falls falls as baseline pricing the into that into baseline. go forward, we

William Your next Truist Securities. question Stein with is from

picked congratulations there’s are strong good of revenue war But or and in challenged that bookings adjusting rates. to raising and potentially the despite up COVID orders, disrupting the and performance, well. kitting but potentially the concern from very add out – shutdowns my we’ve revenue because I’ll which customers was pushing that they’re not That ancelling certainly concerned about a also factors potentially the a China very But maybe investors great. that outlook profitability prominent, as a stuff, and Ukraine, course, in all few there’s perspective. as on, is

Can the factors are yourself how them business and you that highlighted us your in constrained. you quarters? how understand affecting playing You anticipate out today next your over you’re business capacity help those few

Yes.

cancellations are geographies, equitable stead. is So the the how very I foremost, across very across very, very in in I They’re markets, think terms very across that customer we’ve – low. ADI supply the on our still sizes. muted. and been very, Customers And think first have of good moved we

what from on better a of speak, distribution we we’re better, based goods, have my the believe, on getting I true what And so more to our I’m read – reflects demand. we’ve I think demand, equitable customers. because feedback true think shipping is So got most, sense of I than is

goods. cancellations are – the demand low, strong. increased during And don’t continues we is so think those remain equitable still, see actually of I So our quarter, last distribution to the any backlog facts,

Yes.

markets again, Just is the geographies. that, numbers. second in the of that the quarter, was, grow. backlog continued above end by Because and to the X Well, and all book-to-bill

specifically asked about China. You

XX% of about severe greater around had the area. to related some it our production, the was logistics lockdowns that’s impact revenue. the more but on really quickly, customer real and chain supply So And Shanghai

X Our quarter-over-quarter was Again, and book-to-bill and China demand. notable revenue above I year-over-year to normal, China. cancellations and impacts for up no mentioned, as

relatively So going this a at third when least be it’s we quarter, are normal customers the to so reflects for levels consider our impact. negligible that that guide at operating dynamic, we think most and

Yes.

in operations have have of operations China. bit China. a And also from we Just no color. as very manufacturing Also, modest logistics add a standpoint internal well, very, little in we

our to please. go last We’ll question,

from Toshiya Sachs. last with Goldman Our question is Hari

be Toshi, more may have queue? the we Do on? Toshi are you mute. X on in

X the have in queue? we Do more

Our with next Fargo is question Securities. from Wells Mobley Gary

question a I on follow-up wanted backlog. to ask

whatnot? the mentioned at quarters. incremental what backlog expectation tested to backlog next is sequential circumstances, Wondering the backdrop perhaps deterioration you may revenue that X, under see for guess, for extent and of based how that economic see, further your X we growth I have the trend and bearish think maybe most supply, the in adding on maybe you quarters, maybe I to stress few if your least

fair Gary, Vince Yes. a question. of The as we a number at mentioned, indicators. -- external look

in mindful our as has mentioned, support to conversations environment. right we the for what's and But happening driver. continue macro customers with we So their to need the you are of products that he that the secular are our attached

out X than that I want quarters. quarters not I do to to next further about but go can't growth X I out for X this good see to want that I feel next sure point. said sequential far, at the I'm growth, X Gary. the So had to clarify, you sequential

Thanks for joining Thanks, on our transcript available everyone, Analog A of be will this interest again morning. and call your the in Devices. continued for joining website. the us copy

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