Analog Devices (ADI) 17 Aug 222022 Q3 Earnings call transcript

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

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

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

statements information and disclosures. forward-looking are and with materials our to these our from certain periodic call. required the to statements, to forward-looking of Actual date to and expectations except Roche; the which results about could filed The reports the as on discuss we're as SEC. differ materially Now We information undertake ADI's update as subject reflect of this Vincent the law. includes statements, CFO, no Prashanth other by obligation these

and financial comparing items items. Our measures earnings comparable to which measures, note, prior comments excluded report our today today's our non-GAAP to in special annual titled our measures performance, their last exclude non-GAAP Reconciliations directly included When will ESG quarter additional are Future historical most also periods. release. also information published our Forward. are from about GAAP we've non-GAAP include these results Please special of also measures

it call Vince. with page. IR the I'll turn and that, the find web Vince? can over You CEO on ADI's to And Chair,

end was of of combined Strength broad-based and billion, XX% a up diverse by outlook. Thank to We backdrop. delivered resilient basis you, in all. double-digit share and growth $X.X operational you, well Mike, pleased demand midpoint the strong year-over-year a and record excellence, dynamic our innovation-rich every with macro another products. driven good Well, that was results, very portfolio I'm continued morning market. Revenue for financial above to of amidst we on discipline our executed quarter

and of new I'm gross Our third share with our results, is innovation I and our by our exceptionally marking an Adjusted want fueled another high R&D At success employees dedication our XX%, continued leverage ingrained thank quarter respectively. and reflects to for to and operating high. success, customers. to the commitment earnings their with robust premium per and finished end investments. to innovation ADI's culture, of $X.XX at our outlook, of our importantly, operating margins ADI, in and hard work XX% the strong profitability unwavering pleased of

invested facet Over success key to the with months, their is and X enables last collaborate to dedication solving extensive A which XX to $X. in we've our billion them innovation-driven R&D. customer in problems. our engagements, us toughest deep over

share with we some position highlights. reinforced two in automotive, auto premium manufacturers. market-leading Now customer I'd recent In to our BMS like wins at European

ADI our that announced This I'd Edge like strategy. earlier, our One the we recently with with are win Quantum help our the wins consumer plays wearable detect long-term outcomes. a capabilities energy, business solution. Europe BMS enables unique continuous wireless Enel BMS measurement to patient design signal the care, growth to system grids. sensors. MCUs helping precision improve billion-plus to important franchise, on system profitable was wireless digitally in hospital more to device health an In interest released technology. customer critical globally. This deterioration creating Today, monitoring this In to of and flexible a solutions used and monitor adopt marks sustainable resilient continues unmatched efficient to advance GE $X.X OEM to grid electrification electric wireless in wireless for build Group uses Healthcare profile monitoring these power, fourth RF by as chain, a ADI's across role to

we smartphones. macro built diversity systems, better fast-growing revenue remaining market, to theater. to why across differently. wearables professional that's just reconfigured posted including consumer But points including quarter, and the consecutive The have enhancing the diversity our consumer slowdown, of our as next-generation our our data highlight to really SKUs to step one our conferencing this seventh portfolio. addition matters than surrounding to hearables is of over where product we've drive our Over high is indeed to quarter. just immune portables, products our end years-plus, unique. consumer well increased our the we the revenue back, XX% customers, while our our consumer franchise not long business third Maxim last to have And audio/video and premium and and XX,XXX cycle reason relates performance limit growth composition the negative into Approximately time, are while truly market profitability. of end differentiation increase home count we now. may and recent customer comes aligned more business of Taking life in a market The prosumer expanded business wonder is the this In from growth enhances the The as valued. expanded over five we Given volatility applications, applications where X,XXX. and applications further and consumer this

sales. time, this Importantly, and of technology in other accelerate market into with profitability and It consumer is solutions is BXB scale. at velocity commercialize quite the strong create to similar no these and to our quickly cash growth single couple of than percentage Over product innovation markets flow. to appealing. total breakthrough take more drive new us markets, points composition we business development of The a the ADI allows solutions to contributing of waves

Atmos our and software in the was automotive market. electric example, our our capability into vehicle demonstrated with proven have Shark DSP business. leveraged For that that was showcased we expertise where consumer uses Dolby an first audio at consumer we Investor Day the This

that have industrial franchises to the we've our aimed drivers example, for that grow created only long diverse to from but one us we Not have at wearables. smartphone leveraged that business for growth Additionally, high-precision a in converters profitable at rate a and compass sensing and pressure similar To the challenges over repurposed investments key R&D and end, highly term. position also high single-digit our core consumer instrumentation, been market. solve into stabilization in is also

For example, been more future prosumer companies enterprise conferencing. encompass immersive work implement our video as has revitalized that plans growth of

Here, and us to mixed and wireless resolution DSP, to portables now power management of the of entire analog, stereo across video connectivity market. into majority breadth the solve earbuds. quality. signal turning challenge And enables the we high-bandwidth premium In our the shift to a moment portfolio customer from hearables, sound

is signs at monitoring share which wearables, algorithms that in key with personal today. hardware, our ADI's domain these customers, audio opportunity expanding diversification per solutions. new and the vital could and times. us XX% and value wellness clinical-grade products solutions of software solutions our complete offerings hearing provide designed an a emerging and new subsystem wellness newest to improves smartphones, and premium Our into algorithms optimized of personal while include us system expertise is we're opportunities unlock increasing content sensing An of growth leader stimulating that is products a fidelity breadth we're convergence additional ADI. our for And over size X products In providing metaverse. and software-augmented ability in vectors. reduces There power over by gives

is headsets. cross-sell in wins momentum see spaces, more critical. of longer our applications, already still consumers the are wins Across power building, battery $X wearables design these over of ever doubled and into complementary beginning management early adding we bases Customers consumer demanding power We're becoming the and to Maxim our both life. next-generation course, all while size in consumer and is are in increased with the conferencing have customer and days, our features benefits more portfolios billion. portfolio systems. While low-power by AR/VR synergistic SAM of we're multiple smaller

potential, So a summary, to taken deliver growth to I and pipeline our with we've and the a opportunity term. encouraged in significant I'm very in believe with in we're long consistent growth record reignite position consumer over strides business the synergy

on provide Obviously, with fluctuations. XX-year a franchise premier customers investment our of Economic demand And many weaknesses, we've long to successfully it and navigated before our beginning with times is an playing -- many, conditions his later analog that, current mitigate instil diversity resiliency business adapts cycles manufacturing unmatched market remarks. Prashanth. we're and Now and through to in And before make focus showing to applications. to macro into slightly. a to We've orders a dynamics increasing impact are that the sustain details at in profitability model in over these comments Prashanth Prashanth, slowing our hand that challenges an I'll macro hybrid to economic to the I'd history. ADI with These characteristics enable passing the and over our products, environment. created point. business game. on backdrop inflection invested better demand some clear it's additional dynamic in quarter in will orders cancellations on like business

me our on My Let outlined my which today's in press exception today, will third adjusted add welcome quarter special earnings be release. to with an excludes the items revenue, of comments basis, call.

underscoring represented diverse midpoint XX% represented our performance, now look consecutive our XX% our for than SAAR. sequentially. wireless better vehicles, outlook of revenue Third end demand with another hyperscalers finished revenue, to portfolios Industrial growth and The and capture year-over-year we with XX% high for AXB carriers of growth applications was data. end premium represented quarterly GMSL, year-over-year. above which more And growth revenue. Growth consumer straight our has of another increasing Sequentially, power broad-based record. consecutive of and XX% year-over-year market which of in quarter achieved and all-time most and Automotive, quarters. meet quarters, and sixth third versus and with represented ever-growing with driving growth year-over-year of both revenue optical growth the increasing and content quarter strong wireless outpaced revenue, invest now record engines a demand of and at billion ADI's for industrial, of $X.X outsized position strong secular the across XX% value me, wireline. marked for XX% hit Communications, is each of our X record, X -- BMS, grown our market, mix of achieved higher-content profitable excuse lastly, growing our has as major revenue grown quarterly better wireline If XX% combined applications.

design growing prosumer and the As us across diversity despite enabling momentum market consumer slowdown. Vince the portables grow is to highlighted, and

quarter margin up of XXX and the Now capture. the million higher-than-normal a of by favorable driven utilization, quarter on XX.X% the of at basis X%, Operating OpEx the reflects our XX. finishing high increased year-over-year, the was points $XXX synergy higher merit All XX.X%. a to mix increases. Days and P&L. over toward rest $X.X equivalents. to the was which record $XX third quarter X Gross basis inventory was increased low year-over-year, end million, XXX points versus Non-op cash full margin outlook. came EPS quarter the was quarter ended the of told, we balance target tax in our below XXXX. of billion to the range up XXX, rate remains with XX% for of channel X while end $X. of and On XX, at sheet, in of weeks. inventory

trailing quarter of $XXX CapEx cash For for million X% revenue. was under months, XX $XXX flow, and the the million just over

our We long-term hybrid X% investments to support CAGR. manufacturing will through XX% to our strategic strengthen these of our outlook elevated growth model. continue resiliency to expect And expansion the CapEx support XXXX investments of and

cash revenue. generated which Over Included free of we to months, revenue. X% are over of onetime flow billion the $X.X deal-related free costs about amount XX% of trailing flow cash in our XX or

putting X% opportunistically intra-quarter exceed $X year XX Maxim, $X And end close dividend we've more fiscal million. returned track repurchased volatility, by cap. the post the our on or billion worth commitment increased of to $X.X With shares, to repo us $XXX market of of over billion we've billion to months one the activity we than 'XX. our approximately approximately Including shareholders of the payments, after last

remaining target cash As to CAGR XX% our cycle, XX% support XXX% count target the flow of cash dividend flow XX% allocate used a a with for reminder, free reduction. cash share to through to free we the return. We

new I Now to our well want we record, to some provide stretching book order the around before strong outlook, In a third and mid-XXXX. remained details demand. to into backlog move quarter, additional increased

represent was consumer ago still orders while automotive, market, a are in we However, from of above later both our and together By book-to-bill over well as persist quarter, in industrial moderated strength comms result, seeing a quarter and a but two-thirds one. and which softer. bit were the down sales,

end also geography. in specific a cancellations was We saw modest and not to increase market or any

a take the cautious more backdrop, with prudent it's coupled believe dynamics, these Given we macro stance. to

As Op bookings, such, be that we markets minus At growth. expect bps. and growth higher plus plus are stronger despite would all quarter-over-quarter. midpoint, grow expected the only we is or forecasting $XXX backlog margin slight $X.XX to suggest supply XX billion, minus end or sequential revenue to XX.X%, all to million,

our a market OpEx floor. Our coupled to of The be us our gross XX% manufacturing is us we EPS return to XX, margins adjusted tax help manage to inputs, layers our aspects flexibility broadly, several investors. And dynamic, that will diverse our hybrid have include $X.XX. be that macro our our rate business These strong line. to with maintaining is XX% to exposure, model $X. secular our these position support and plus the drivers or cash headwinds. on of expected maintain confidence further has minus quite is margin gives expected XX%. based also industry-leading More top solid backdrop several buffer And well to end in while

closing, So of my next years high. $XX path of in in our confidence to the five remains EPS

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

Thanks, Prashanth.

Let's Matt? get Instructions) that, we session. With the can (Operator question, have to first our please, Q&A

come ahead. question Please America from with first Our Instructions] Bank will Arya of [Operator go Vivek Securities.

to to then you to happens than to wanted much year? Is term how clarify What pricing as conservatism start in little it or these pricing decelerate? customers lever longer flat And the bit outlook. next Is is firm? about as just bookings I down QX see to holding start that. the think start a

Vivek. question, you for the Thank Yes.

of take part then the that, me first the Vince to maybe pricing. speak let and I'll Let

of a building we’ve and over that were expecting and quarter of that couple increase So quarters having the we've meaning for equipment a we’ve been supply with ability of course that year. talking the been now we to full installations the our fourth been the in

the there. our guide supply put of we supply ability that So our -- even access out

saw third record. and increased In addition, our it's to the kind was quarter new strength from the sequentially actually a backlog increased of very logical more that are one and all-time said macro of into given in we -- in book-to-bill quarter. Having environment the above activity the could of we print the towards backlog, And order softening supply, number. we still aware a the a end that, the bigger bit very tail

does the guide to back that pricing order Vince, So a little want on bit address kind continue, disappointing. that's you if we held question? why this of do ensure the softness we're not to

prices Yes. seeing recessionary expect so we Thanks, first Vivek. I think any Yes, foremost, see environment. pressure and to are don't a in on tremendous stability. downward even I

products I our value for think that foremost, of first premium and the kind innovation deliver customers. we our to reflects an

the the never material. either the in pull tent we're in of Now bill pricing long customer's

substitution I high. would costs analog very in thing other say, The very, high-performance are particularly space, the the

So for the disruption considerations customer system to way, way a design outweighs price reduction.

tremendous cycle price we basis the on products have where a life intensively we with high long substitution costs. most compete is but very, socket, stability, original get So obviously to very

cycle. through my pricing is that will steady very sense the very, remain So

will Evercore. C.J. Our with from next come Muse question

like slowdown be as to end guess on you the in I I'd geography? appreciated. quarter of would you more the relates highlighted. Any Any provide the that the as focus as you that orders tail at end kind color saw cancellations to greatly markets, detail of subsegment well can there it of

C.J. Yes. Thanks, Thank you.

the of a of bookings kind about couple talk maybe pieces. me different Let momentum in

up. fully on too on sell-through we year-over-year -- where change small so we year-over-year, share covers was we're us consumer. But very demand higher. broad-based Comms and profile. for ADI, XX% was cancellations our clearly But up that's that record. ADI, wouldn't the consecutive I and was really markets a So that another but quarter-over-quarter all-time do to Where represent only I the trends first, in consumer in modestly. call, high, our into saw to say very Again, also strongest low this we geography/market as -- in much third sixth increased saw exposure And low we the It be -- we calling I put that again, demand but third quarter. quarter, cancellation results, transparency, quarter modestly began focus to out and which The transparent business. we're low auto, low China end 'XX. double that want the change the channel ticked all new so to number. the strength, want again, were we orders digits well did industrial is really down of that about in And mentioned, see moderate of later were towards exposure another spirit record, were very for that the weaker, backlog and

So bit book-to-bill expecting. was quarter sell-through it still to the from that versus Overall, parity a but POS definitely what the ago. above it than began is originally soften channel was a were the we or lower was

all quarter, So stance a prudent for quarter-over-quarter as Vivek's in I we're guide uncertainty, our supply, as it's growth. coverage, answering despite, to higher good strong the therefore, thought slightly we trends changing we and cautious only better set and on business, basis up in guiding would despite mentioned backlog suggest more question, that take a very which having bookings given fourth

Ambrish Please next Capital. go Srivastava with question come will ahead. Our BMO from

inventory. down And to revenues projection for lot. us are I'm the And it the a for please to question, bottomed assuming assumptions that asking floor And then level? could that just of you gross is go I help behind this connection question a what out that way at underlying Hey, and because get hit the you where laid this more are cycle relates real Prashanth, importantly, had I the margin, utilization on you have if EPS prior in out margins what's above which downside so prices. ADI? understand what kind the as to for

Sure, sure. Thank Ambrish. you,

So The utilizations outside gives able gives bring us which that ever down on to essentially model, of we is being start been. this notice, us number Maxim by reminder more have of event we supply maybe partners flexibility production let's utilizations the that that addition really need a chain with manufacturing scale, keeping structurally and internal we to our focus the manage of hybrid with the than company to and a quarter's to, our have in higher. supply the profitable benefit benefit notify

XX,XXX of result emphasize, cycle, this scenario, secular a is through XX% coming kind that maintain not which are I applications, margin model and projection again, standpoint, we us. we downturn In a an there way about thinking a As of standpoint, the what But in metric growth downturn investor of products, XXX,XXX at can which that is model we investors a think to gross have want customers great out confident of we a very that of that, markets. feel to floor, forecast a from could a aligned put diversification, to a give to be, floor. thousands unique and thousands what we this is it and any help from revenue numerous

have exposure are We to not health care, be as like to in and cycle aerospace much which stronger down cyclical. defense markets a going and

to manufacturing side, And really mentioned the we model allows OpEx. a gross us to this allows compensation moderate On manage which margin help program, I have variable then utilizations. accordion-driven flexible very us that

margins still be, in would XXs be scenario about probably a probably a So downside XX% margins low believe low we in gross XX, were have but op handle would a the think above that XXs. on them, and X in the to again, revenue down if was market, we probably

Stacy Bernstein come will ahead. go Rasgon Please question next with Our from Research.

the delve more to and little wanted into the a order. bit I bookings

were book-to-bill one it XXX%? was coming it that, I guidance? Like the assuming we drawn they're is as you happens all the are quarter? where in? backlog now above up? what that are far XXX% Or go is that you just How the and or what down that before into gets in goes assuming next embedded assuming actually it? Are assumptions around to And at guess are you backlog like So bookings

Yes.

So let's we can what here, see say Stacy.

we're excluding a still and quarters, the the because of so couple book-to-bill two, of was -- actually, you It can between right? backlog you can quarter, We're substantially. the last one a above now math end the third for the at that. one how but has So lower see do increased

to memory Now my from was industrial flattish think and just a strong, hair and consumer helped for compensate comms -- I'm was below. going I automotive, and here, about just that

the backlog? assuming you in are for What the next quarter

sure. Yes, 'XX. it of not is next that happens into what backlog the for because goes quarter I out indicative mean,

of So into see a this backlog cancellations, and that's percent really you the 'XX. small is these very as

to our this the above fourth again because even So assumption investments level way one. backlog an demand enterprise quarter for above is to say probably still as really one. not probably going is bookings point. at I the said, increases first It's And Prashanth used the quarter book-to-bill affect or at be

above they're Now nicely one.

So we're still booking above what we're shipping.

could better. give don't that And level we to match the inventory although what line choose, business. not from the to books quarters, why So it push with our not out." us be in and not the if a more say, And to fourth of satisfaction, that channel "We'd flexibility not to a it the I keep on customer and standpoint, give -- make inventory be, we would quarter? supply, to been function channel of flexibility last would customer for looks if we customers for for of is that that to to the is couple the the case could that it we Why they've case them in purely of be demand like building has sure channel healthy timing them right? our Why ordered reschedule mentioned, kind supply, in number spirit the choose us at we the -- in the cause would and can that could revenue like move to as think is why come

a channel important is on number channel build. XX:XX really that the That's I inventory that no point have sell-through guiding to to. thing that's assumes Prashanth brought up we're that, one

Mike. you, Thank Yes.

to different four That's parts next Stacy, to question. so answer, we'll that go the

from next Barclays. with Our will Blayne ahead. Curtis question come Please go

a I in part just terms these cancellations. question follow seeing on to where just of up you're want

said weaker. and consumer You comms are

you think you trying sell-through was the you're in But comms to one. the where I Or just certain of terms to weaker as all seeing I'm us weaker is in of below I Can in, dial is comments understand broad-based well. cancellations channel and it the said just comments kind these book-to-bill is think isolated of of segments? sell-through?

Everything is in broad-based, to saying and statement right But probably true again, transparency, folks we that they -- a meaningful cancellations modestly. were the is we we're are don't to on I spirit have think up now, that that of a overemphasized I if mislead concern. call, that's this want cancellations think

pretty But talked everything has broad-based. we've about been

maybe will we a to deployed, I spectrum this spectrum. lumpy one business. has just -- That market chunk buying the on just spent money always is that that the of position been be big And wireless hardware leading have which We follow-up require comms, know have on. the has guys XG a share

we're confident. a This highly So pretty issue. timing of is

will Svanberg go with Please question Stifel. Our Tore from next come ahead.

record. congrats And on another

we the OpEx utilization, and three As going are big environment, of through about thinking forward? move software cost you levers, how CapEx sort this

Okay.

need one to can the is levels hold is back are hybrid Die So at levels, bank but our have us for very bank to low of certainly across in-house; of some particularly an the least that is benefit healthy talked die from extremely is see when we that, levels second get SKUs. going die that place relatively those to bring bank we're levels XX,XXX good I through you think few utilization to cost-efficient a reasons: utilization we've point. we internal inventory, levels, model to production more do at for factories continue a Tore, and

it of on hold it sort the think dollar. of as $X.XX can You

unwinds in and spend supply 'XX model 'XX, of for quarter add of XX% level to, is higher very necessary track. we growth, standpoint, performance the allows economically -- which which to to X% compensation is committed which program, sorry, needed past, improve have and our And the to. Capital From hit variable seen financial CapEx that OpEx current are a for long-term to on. to much we think the expect consequence what our Day you've the of a accordion-driven which coming what's have maybe the stronger, expected. below standpoint, very unique of versus the to economic bit XXXX. bit automatically the of of I in denominator a we current customer ADI receiving that later of satisfaction of Maxim, is a CapEx us all usual. delay it the also From year, environment. Investor is but just be that as revenue some we had company are efficient synergies it So That's will committed and a little cost drive very if in an to bigger is from to so of drives perhaps business and the equipment, in We some independent as us at peers a -- in it on the through

Yes.

Tore. Sorry,

at part ADI. of that our the record critical -- funded we story to ensure very, Innovation continue On a to to intend have all at levels. of creation important very R&D the we've We side, intend OpEx properly we been programs. value spending

-- in are also upping We activities been our actually well. we've spend the go-to-market as

So both keep to of those, continue on. we metal our to the pedal will

go question ahead. Our with from come Please Goldman will Toshiya Sachs. Hari next

And bottleneck or of pricing 'XX to Any a to changes to customers? headlines in that, ask if sort easing. I'm supply foundry months you're terms pass X, that it ago. getting there Is in of about foundry you'd suppliers? able that And the And big from those supply your for supply ago, about into on starting be kind side indication wafer significant you you're X 'XX. wafer curious supply, I was internal through external are there? your again again, increasing be a just to been of foundry wanted if signs internal related supply. comfortable question whether to tightness, signs easing? of equation. have your the of any the supply some going see Three so, of late you I had test talked sort guess months

pricing period part in sustained Well, years that many, we in I your a and on of think question, last are of this era the structural for in business post-Moore's believe many Law the first, ahead. increases, I inflation

supply invested true capabilities of own think ADI. and wafer fabs strongly that four able course. We've across supply our to supply inside be it's to we've to actually I manufacturing -- increase been increasing, in the secure say

actually as as last over So from thematically well of improving right improving years our couple yes, the right is as supply well. the has been supply there. And through pandemic, subcontractors

think there across a board. is I of supply So lightening the

On what maybe said in the restate past. just I'll we pricing,

to we develop to this using need and we model. is on us, really capture gross our is And we to margin a at environment innovation spend and maintain advantage take are that not our to are rationale of innovative the looking healthy we margin model, to R&D as Vince which that our We clip customers, on mentioned, know, important customers. highly premium from products, gross

reflection increases continue capture those it's costs our our value with the cost important we're we to stable margins as because may of back a to customers. So that increase, it's bringing

go come Sur ahead. will from question next Please JPMorgan. Our with Harlan

clarification. one Just

just catch-up eventual feels being cushion inventories But question greater currently, is still X main environment And that Obviously, guys are X still clarification That's the So demand weaken of you represents further. XX% I still looks question. of should the weeks. that just the like is continues to my said, like your provide quarter-to-date, your you right? quite to than some still with guys levels if target industrial auto and distribution the it it below strong. to team's my one. so wanted Then revenues, verify, said book-to-bill is about

outlook, few view over on target like what's next the channel your to given quarters? So levels getting on your inventories

Yes. Thanks, Harlan.

POS. is guide, the many guide for POA. has is the mentioned, as Mike on fourth equals thing One years been run for say of we about Your that some basis emphasize consistent to there you first want level. us is target to correctly, opportunity by I levels distis it to back our revenue that all, healthy -- But the very bringing the our business POS our recapped for to and ADI grow continue quarter that on of

look end to we help inventory. manufacturing, not demand, drives buffer distribution So able to distis but an and with we are need end how end those we be up for for of we be us to at access looking want to demand excess products, and

of that was other have quarter, we'll And the with Yes, please? flat, at comms call while around you book-to-bill That about still one strongest auto well was was question, one And Harlan, part two the question above with industrial we and the and by had, one. level. consumer, for that, may last markets, driven the our book-to-bill. enterprise

from Deutsche Please with come will Seymore Ross last ahead. Bank. Our go question

a Vince, sorts near-term to of backlog, one. questions longer those about things. bookings, cancellations, ask all slightly of lot wanted I a

a a in going You a of Law supply a partnership, question just you rather mentioned unwind to agreements, little changed? still Over months, earlier inflationary that's well? of things. of little post-Moore's sorts about Can you few more long-term companies than deflationary. year, an you believe do those the environment lot saying and longer more about a Or customer have Do talk see behavior We're it's the lot a we've that as of we're that cetera, world. lead from of in last bit how cyclical to heard tightness last continuing? reflection answer times, you some to conversations from expect et an bit a have

that everybody processes. biggest Particularly very wants lot to key perceived can tell term. for information. to companies of innovation their to over critical comes that roadmaps conversations, their a closer are had product when the last long question. I've as a it's being for is for world suppliers with aligning what sure get you I it good Ross, in of Yes, years enterprises of CEOs of couple the the And the

established And tell of term? kind the in develop And kind put what I we the So to they you bedrock been semiconductors What can each continues. other? equation information continues. customer at the flows? that socioeconomic I understand is models of are modern the secure life. supply that between now kind they think side things, of So place? has wants it to modern do to need -- that firmly of other the What of that long need of of for do the what to side And arrangements that everybody

into future. I continue conversations intensively, the continue that the to say, and I So well would expect

these us. And even the when up like team joining flag I Area, times to neighborhood. be interest during uncertain our more ADI. continued quarter, that, Bay joining available. that, and in us for call our owners, in in consistent Vince for want across next our for with for you'd if myself a transparency more so or to with thanks, thanks the be reach the to we're your did out everyone, Please that this we'll commitment IR with and Chicago your be notified quarter morning. to in will Prashanth it's busy and And and coming Europe York, New L.A.,

concludes today's conference Devices Analog This call.

now disconnect. may You