Analog Devices (ADI) 22 Nov 222022 Q4 Earnings call transcript

Good morning, and welcome to the Analog Devices Fourth Quarter and Fiscal Year 2022 Earnings Conference Call, which is being audio webcast via telephone and over the web.

As a reminder, this event is being recorded. I'd now like to introduce your host for today's call. Mr. Michael Lucarelli, Vice President of Investor Relations and FP&A. yours. is floor the Sir,

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

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

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

capping another ADI. quarter, all. you for extremely Thank record share what better to we and Well, I'm really you, delivered morning good Mike, pleased to was that year off a

and Our our the was end $X.XX, fourth EPS and adjusted outlook. at billion, high quarter was both of $X.XX revenue

basis. XX% was an revenue year, up fiscal impressive the year-over-year combined on a billion, For $XX

industry-wide our nearly all-time delivered Our continued grow Industrial, $X.XX. increased by and Communications EPS to Adjusted revenues, Automotive Consumer weakness. and business XX% to high markets despite

of flow of exemplify hard message repurchases customers, the to through We results cash focus also shareholders to To dividends. returning 'XX, our clear. in billion and with our our very but only the free ADI's brand. been also to end, customer strength work share in $X.X that the return XXX% These fortify employees on has of commitment conversations portfolio, delivered and deep our recent not my

support While disruptions, time we're be challenging quality to continues and not to this outstanding. ADI’s throughout service, supply immune

is Importantly, all all sentiment shared by this and across of sizes customers markets.

result, a solutions engage develop that upon are our longer more customers intelligent As strategic the edge. calling empower in to ADI further term, collaborations to

So and in we service. in the billion remain to FY'XX. ensure $X.X in of customer at $XXX technological R&D and forefront invested advancements million We CapEx

start with me R&D. let Now

Apollo foundational is well which for targeted investments A Apollo April. making integration the of high-performance our as customers. ubiquitous prime but strengthening broad more is all up in market. Analog performance, Day our appealing as customers, especially create Our unmatched signal for franchises are previewed platform and a we platform, processing solutions with at functionality, levels flexible those Investor our moving high-speed to to example stack it our complete the in at

the instrumentation has this extremely positive. our and customers quarter, began innovative with we their platform feedback and aerospace, During been sampling communications

side. the Turning now operations to

record we a a to by expand significantly model factories to manufacturing capacity. in increase again, years. cost-effective in of And output. increasing invested investments coming are, our amount XX% we year, revenue of capacity These European to XXXX, manufacturing flexible in our last aggressively the Over will the and U.S. investing create hybrid around and CapEx our once our more swing

wireless growth growth two in essential that an platform. 'XX. or win our support designed This more investments by Our Notably, eight solutions, R&D was than $X XX% opportunity utilize which our BMS design and new pipeline, BMS, healthcare supply automotive energy now expanded which businesses. and in underpinned by systems, led chain nearing was manufacturers by our Automotive year, systems pipeline in to digital including are billion. our has battery management plan This to our

me our globally, strong increasing penetration EV confidence great with in combined future leadership growth position Our gives prospects.

designed Looking monitors now quarter. at at global some machine selected diagnostic were automation, into we exploration. In supplier health that system advanced an in activity design a the for industrial energy

Our system and in defense, In defense an meaningfully. approximate programs won aerospace wiring lowers solution costs enables reduction prime and contractors. approach XX% module multiple we RF size at

ORAN instrumentation, systems. reliable, design components efficient as And to systems content and thousands integrate The wins begins hundreds expanded modules Our for enables winning share required system. to radio from testers scale we while accurate, In lastly, XG for our key wins in deliver of with and our precision technology the high systems. dollars better XG suppliers. hundreds Communications, two of portfolio in additional our proliferate. transceiver next-generation India, increasing new leadership our high-voltage in at market combination even of and position manufacturing electric processes to and globally, roll to at voltage leaders testing renewable especially These process industrial simplify our energy out per we the secured us of of customers, to these networks vehicles us

design beginning This in on puts synergies. and $X from path us target pipeline benefit is portfolios. a our revenue to to achieve billion Maxim Importantly, ADI cross-selling our our

GMSL upon opportunities high-speed autonomous power designed inroads For capturing cross-sell systems. e-commerce driver of also pipeline largest example, for great to manufacturer, connectivity year. connecting increased strong We're into by our making the example, one our Last new where Industrial advanced our European broader digits audio in the order our our companies. technology systems opportunity at double built with GMSL portfolio, fulfillment a at was last technology, auto market. also their quarter, with We're we position

customers' is match billion. expanding $XX applications, across power us to to SAM Our nearly and more better our increased performance power breadth helping trade-offs

enabled power position For per sockets, example, content leading to signal at a and for precision pull customer, through distributed chain thereby power additional doubling our us industrial European systems in content I/O control system. our mid-voltage

model resilience confident our together, to our ability and instils Our into of growth the diversity historical mid-single move long-term bend significant revenue our from our XX%. while vectors. X% growth curve taken growth and greater new to business, expanding in I'm pipeline digit and adding rate opportunities And to synergy

edge. So in an of successfully deliver secular opportunities of us course creating summary, ADI capture our navigated allows invest innovation, to XX of the business the The cycles, breakthrough intelligent abundance the our many macro franchise has through year uncertainty, we at strength deepen to to crosscurrents our slowdowns history. relevance customers and are our the over continue emerging ensuring while

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

you, Vince. Thank

high in of We as closed my We margin XXX adjusted items revenue earnings profits. all-time our in and consecutive call. XX.X% our XXX year will press fiscal increased reflecting billion be execution to quarter of margins My each basis the of of today, Let to increased quarter, basis, adjusted and $XX strong today's increased XX% revenue; an second me cost release. add $X.XX. points due XX.X% OpEx to synergies; achieving sequential growth utilization of nearly stronger XXXX with new welcome excludes gross basis special mix, exception operating outlined revenue, EPS favorable on a on fourth product delivered and comments record points, which synergies’

revenue outlook. at For was our fourth the of end quarter, finishing high billion, $X.XX the

hit an of quarter quarterly with and are cover represented application broad-based applicable. year-over-year. our by where the all-time diverse on high Growth XX% adjusted Industrial, and for each full sequentially year, combined another and both performance I growth revenue. most my end basis market, As the and was end major market comments profitable increasing

where consistent Notably, performance of year, in year, record achieved with growing healthcare straight subsystem quarterly which solutions our in key the represented was XX% is business. another revenue, seven growth such and success XX% secular For now year-over-year. up This years. expanded critical. Industrial both each and the digital achieved over underscores breadth healthcare Automotive, market ICs has and in XX% growth sequentially of a record

$X safe BMS, For of vehicles, and a wireline, AXB capture Auto power with achieved wireless year, while AXB was Together, quarterly about represented GMSL, with which to value franchises functional XX% was enhanced Communications, the favorable XX%, drove SAAR. our up quarter strong significant record franchises, safe compared sequential business combined represent revenue. of growing BMS, Automotive over premium of billion GMSL, in our growth of and growth these revenue, functional another flat. mix power

wireless, power signal is wireline, And the Comms strong chains optical enabling XG globally. grew year, In portfolios in benefited radio bandwidth. our and the demand from the For position our in rollout for XX%. continued

as have quarterly and up broader diversified industry, well revenue testament Consumer the the life how from command. derived premium conferencing XX% applications, business revenue a remaining AV to and smartphones. Despite modestly and a approximately prosumer is X%. products was in to professional of our is Lastly, year-over-year. for we Consumer and year Consumer including XX% cycle wearables faster-growing and innovation premium our sequentially hearables Today, relates This up next-gen growth home flat theater, Consumer represented the while challenging of systems, revenue as the finished long

$XX exited P&L fourth margin points synergy that OpEx office million cross-functional record additional been our with of year the XXX the and million, dedication run the the quarter. Non-op we mix XX.X%. of This our tax down supported synergies XX%, margin $XXX in And realization the by was move was possible $X.XX, capture for have and XX.X% I'll roughly Gross expenses year-over-year XXX rate. increased the in came million, across due goods without points would integration XX% to at pace adjusted of of product a $XXX up slightly OpEx All year-over-year, basis were not capture. as favorable up driven realized cost them. EPS sequentially the incredible down synergies. Now synergy operating was year-over-year. and finishing rate teams basis at of told, and

quarter of remain the Days billion to ended and XXX X. net the once increased equivalents ratio $X.X cash to range X leverage X sheet. to continues weeks. inventory our while balance channel and on was inventory to again approximately our We target Moving below of of below with

to shipping instead customer This with during uncertain and end Let our it sheet on on inventory. provides prudent better our into us demand temporarily channel. supply more believe with enhanced hold times, markets. the additional across details regions me we provide balance align is But goods of first, to these finished flexibility some

raw to WIP material our die rebuild Second, begin as and we increasing are bank.

crucial it's of some below levels. as optimal target and inventory we Over We reduced. markets different XX% bank drastically time. for service customers. to our as for and cases, lead Die efficient used X- customer cost to be level in look is to the believe inventory return last And bank sits highly reducing is couple higher service to can it our die over times was critical X-week years,

in these Given near depletion. expect before balance inventory back down finished to die with as bank term we we goods the rebuild increase actions, trending

and flow quarter to or million for for revenue. Moving of the $XXX the $XXX cash million year items. CapEx was X%

high around at at Investor digits percentage As our single elevated expect outlined CapEx XXXX we we revenue. as Day, a through of

For were restructuring onetime This committed flow given These we we cash our $X.X flow or at intensity generated revenue. billion Day cash XX% of transaction fiscal XX% our of growing not costs. remain Investor of than free near-term higher and headwinds normal free XXXX, our target lower and free revenue. when long-term and to flow to unexpected we outlined is cash capital

As CAGR year, share a XX% billion We aim a cycle nearly reminder, target cash repurchased billion remaining return. our the paying we of flow shares, to while X%, returned free shareholders. $X.X of dividends. flow we We at during used count reduction. more with free XXX% reducing through in to the than by cash for grow And count share $X.X the cash XXX% dividend

So let update backdrop. a the me on operating with current close brief

last and macroeconomic demand. slowing we impact environment has As on had quarter, some uncertain the noted

quarter levels $X.XX quarter strongest after while and entering first the what quarter. Not the Consumer minus during bookings a or for months Industrial plus orders, consider Auto, However, and saw remain to Communications surprisingly, guiding our weaker. first billion, We're slowing bookings normal the couple at relatively million. we'd of are $XXX we stabilize of in revenue

more Given a helpful we this prescriptive market. be our be environment, it in by to thought might little outlook

digits our rate should adjusted double about midpoint markets expect high mid-single to be $X.XX. are Industrial $X.XX margins flat; over year-over-year and be Consumer will BXB to At on slightly be between of expected EPS and Auto in XX% to minus expected XX% up first up So decline Tax sequentially; these be quarter, to to And plus increasing be based or XX the by sequentially. to Comms revenue XX%. the our bps. outlook, plus be teens Op digits; down is inputs, or XX%. minus we

we a in back, remain have and of stepping cautious, the like softer So continued is positioned environment well variable backlog and environment; in term, pipeline. thus, rest macro momentum we of a immune Longer and remains to near our but term, are not we dynamic. highly yet the the industry the year over ADI optimistic.

manufacturing several flexibility toolkit robust to maintain OpEx our have levers industry-leading cash and to model margins hybrid high also support shareholders. our with We in and our returns

So let Q&A. to it now Mike for pass me the back

Prashanth. Thanks,

part let's call, yourself limit to order Now you that on the additional question the this get Q&A of in ask call to allow my fair for to We session. participants morning. one the

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

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

suggesting could Yes, system hear you, When of continue we design and wondering Vince, And solutions. activity, you being driven because quarter. all the higher of record obviously, value to about pricing, moving question congratulations I'm right? products, you. more and the win thank of wins, up on ASPs? not was I talking if another talked your color you of bit the about to type is solution some I'm little more by a just for on So add higher growth your the a system ASPs a higher perspective. how more chain more design

Yes.

Tore. thanks, So

and at look last we to ASPs several the our multiple, versus Xx the have we growing you been over that a compared have a our closest competitor, sector, And multiple. has years. if diversion Analog Firstly, Xx

their that that development dealing a important was increasing So, that we quite we systems do us in product are across with activities. ago down applications for to and what was markets and while boil the customers really decided about complexity cared the our the that really

sometimes We're And hundreds stacked to together to like XD that couple so we've ability side facets portfolio We into get of is these areas many to we've quality complexity of of the be in the ADI. many, what management. done that ASPs of our dollars. module essentially, with with other our and of taken power different systems, complexity able our building innovations

same data If microwave. algorithms combine so We you and thing. look combine at our and on XG so digital radio power, We systems, forth. conversion,

competitors. technologies, execute So we that ASPs when of of solutions model, customers the us company, the how day we richer with -- have and it within diversity the at in gives the and of business end believe Tore, compared our choice we

Go to next question please.

comes Muse next question Evercore. The from C.J. with

cautious a for taking you to early guess view. more around the but Thanksgiving. and optimistic Thank question hoping bit happy probe I I the was

extends orders that You stabilizing talked backlog about and a out XX months.

you on can how that about question, done of into then secondly, first on heading And fiscal you've outlook what guess, I kind So does backlog? based talk 'XX? scrubbing that, that inform your

help demand, give me Let and booking. the that some color order take on

So slow, if step in half year, last the we And historical quarter. of year, continued think highs. that first called orders and a we out had that's are quarter then fourth at orders call, you the the back to and last the beginning decline about into actually earnings

fourth of quarter. However, through weeks we first the about the of quarter couple first to and saw orders midway here start the stabilize into

surprising Industrial not standpoint, reflected but strongest From guide. our bookings and North Comms in in and I up was in weakness Europe and and geo a in the seeing holding that there So we'd especially are We're Consumer, Asia, China, well. say weaker America which Auto, surprising. not

that’s optimism. given sort orders we pretty stabilizing driving the change of out term. things of uncertainty about could So coverage there, have fast, our of the backlog that is combination the sort There and but good and out, near we what's cautious feel

sell-in. other signal rather thing, most of in One sell-through to said trying before, demand Yes. We've is really C.J., terms understand the watch carefully we note. to than

between I that, and degree supply. of true think, and gives deeper match demand a reality So us the

from of Arya Vivek next America. with question comes Bank The

macro if the within or to specifically most exposed up your part? of within that bookings on that next you is exposed seem Prashanth, up part the most your helping your and why into business, holding surprised Industrial even what segment to And we perspective that should are business So is tougher? orders fair question. macro specific Industrial macro are Vince the year? it is factory actually headlines then we going think And think better, all how perhaps a I to yes, about though getting see automation follow wanted from you? be

Yes.

let bullish lot me continues last a I talked I And I've the start mean they're about be, while. customers well, of So, would question. expectation. over the immune from automation the there with to automation the say, not macro.

automation transform. I manufacturing, the the are going example. life in we're think have and customers, very batch is experiencing of processing But see a in particularly in -- American, example, some look sciences what's at the if for for large are to U.S.-based our their customers early some life cancellations you for sciences area oil of a they stages strong. The energy happening, where, remain in of soft the is their business. We're to the energy sector likely and another portion gas, lot that businesses sector, small

that's if So a bedrock.

remain will that for strong come. to several think I years for

are seeing time first the of first serious in India manufacturing, time for in onshoring, a movement reshoring. We seeing We're way.

won't the of sense landing But my in will where demand So industry is, overall, the the probably think normal. I macroeconomic be terms softer outrun conditions. than

Yes. Industrial at in it prepared to -- the From we just all where good fourth something versus we said about two first, in and emphasize pretty we Industrial the quarter, the grew a markets, Vivek, feel Maybe, subsegments remarks, other ways. strength in in I'd that are. just look

taking the have supply we the wafers and are to time, same more which seeing to kind smaller model in resilient to sure external has who market, market our as early made a our more disruption Industrial softening tend be partners, this supply in From the and get play. standpoint, and At demand speaks the ability where demand Industrial biasing hybrid into on were broad strength from industrial the to customers a care we of the to that of decision were First, and resilience side. markets, make we the standpoint supply other a additional we use strong. our we recall, from we remained in our

share extremely in calling the note We, it weakness peers that have prosumer our We the peers, video, our et they're business put on cited markets. audio, versus consumer. -- consumer to hand, industrial. it think into in call high of maybe And I professional We our cetera. other some those business, have

may peers, you'll Industrial to when be pure us So Industrial. see that our comparing more

Yes.

I treating bedrock of we've decade, XX, think company. the the the been Industrial last as XX as for years, well,

R&D gets And have we it So first customer of terms been call on of geographies, engagements. depth customer investments, depth engagement. diverse never more of coverage, in coverage,

So have product with decades into the -- we very, stretch and cycles pricing. very stable life also, that

I to So factors and future think those about extremely combine currently, business an as here all very this the very, strong well. bullish make we're

comes Buchalter from question next with Cowen. The Joshua

levels what Thanks dynamics, for to about help have I haven't prepared wanted an point the just in wondering start let taking inventory thank Happy taking and really given can with along my how at question finished directionally But and bank I goods us echo where Thanksgiving. lean to you was you'd all ask the I fully to inventory but channel range be the inventories? color there. you understand you and the would we about thinking at proactive that? you're lower the realize target. measures remarks for I levels, die me understand

still our about below Balance So up X are let and flattish, and sheet desired it's quarter. X XXX days target. to fourth with channel the me to is start

of us the is Certainly, So seeing remarks. different our we balance you're inventory decisions sheet a cost drivers. from and have the in strategic in growth, more couple the for of then made of prepared in requires growth goods, to which inventory inflation sales our coverage that coming

want time one do just I go So through here. that more to

distributor to where someone geography that in hold finished doesn't have an gives So product, that give goods a into customer need. we to different flexibility us align the putting us who going to end are a product particular outcome is bad market the demand else regions across end Because A it to for supply temporarily customer more and with be would in channel. for or versus demand markets. believe we the

has die I where XX% the think the Second, last of of we dried bank it. really want out couple levels some it's over And below years. at I been said,

for with it So four bank and but folks us allows that test. be may goes a end through who in finished familiar it, end, us This die this for product get it to roughly assembly less before the the to and has back is front weeks.

it across and put gives flexibility So markets. it's different quick to maximum turn, us it

investing us we up. back are have will the those critical the on service help which focus us die given levels, So for us get critical customer in get for levels to service, bank our

days the So goods it the comes we will out die result like and then be. higher it bank as back in the expect half, to first would finished down is, to and where trend burn

always old our for goods And obsolescence. goal inventory weeks. minimal we our was X of times down lead of the products, our carry within get roughly our So to target, pretty X which given to can the is our life shipped risk a be long to XX% of

Thanks, add, we you cross-qualification. out is wanted one thing them Josh, when about our Prashanth. utilization to One thing taking think and about point swing about to capacity down. asked I And

from utilizations we'll and what our back we gross down So support our bring external, in pulled internal can to before internal we utilization, margins.

Ambrish The today BMO from Srivastava with next question Capital. comes

the going same question. I'm to ask

with struggling all we're think I it.

won about talking lot a for earnings being last transparent of the You super trends. order guys accolades call

expected quarter. that because were stabilize had you report, expected last small, hearing said industrial Because to it? I cancellations you mean nobody I think other surprised? Vivek order there companies? contrary it's asked the companies prosumer many companies you although seasonality your Is for markets. and calling aspect there versus the doubts Prashanth, how a clarifying you to to thanks what current in including well other And you a question, are the in seeing, it from very But were we’re -- seasonal as industrial. positioning strong orders is very it that to chosen legacy your them time, right climb

tactical get on more color So little now? And real that. one times Where are love the I on quick a bit times. to then lead lead would a

Yes. Sure.

make Let cancellation. on comment me a just

metric we third orders. So provided cancellations we the an that context some inflection we that everyone with as in because to wanted we saw quarter watch happening give a

in was it spirit of the So transparency.

quarter. want get However, to pattern reporting I into every of data a don't cancellation

was we it we So out, have it would meaningful, which didn't. called something if

you can in remove environment. is. for what unlike to So backlog analyzing they with no orders others read given proactively industry, and that would I it say that longer we want are the that working customers our changing the rapidly

So It really visibility this and for us supply better to where is with backlog strategy build. and us helps to us we demand, need our out align seek cancellation. current gives needs what it into the

the So still out has our but confidence is have. year, still It we over backlog of -- is it a in the that increased is sequentially. quality down the coverage

the we're and always while mentioned, both continued term. be about that guide some near we there so noise we mindful And as backlog, can pretty in good the that feel

Yes.

ever getting We're Ambrish, a of at portfolio. it's where I electrification well, think we stronger if are sector, strong management in been. think our general business diversities, we're benefit. the the And the I We're in in that the vehicle. Automotive very where sector the of from market, tailwind power share getting of the is than you look winning

I of think, in gaining we're and vehicle. electric in-cabin share general, a lot the fact, within In

part which only Consumer So kind there would some the has cyclical the macro timber area, now it where that tailwinds is transcending happens year. the to say are The of got business I I at the well. the think a at -- tail we as pattern normal of of the end cycle that seen have we've the here

down. XX wants to inventory time in are times lead are want time have quarter, about some that on the how we still them he say lead to -- those we and than And talked products lead and get. down that would to products high Ambrish. The lead or have want extremely question increase we come to the higher on And they're times actually bring they times, but Prashanth much to -- how some weeks. he our I

cancellations, you. from outlook, come have XQ gave backlog, and kind lead our we to of our So times in sequentially down reflected XQ, that that's overall everything

comes with question Rasgon next from The Stacy Bernstein.

I extra 'XX. had one. question a a and question, week housekeeping in housekeeping broader QX had an then you The quick

about QX So question, talked And have. OpEx extra all? some of guide you would be on in broader week the 'XX levers there later. five that an years the the Is at you

talked XX% the think revenue quarter, is do in margins I the that? last you in still keep you question that? year, above are of I a What a OpEx you pull? guess what like do could some about down like believe scenario XX. would And gross you levers would

Stacy, I'll XX-week be do it's our strong, guess quarter, the housekeeping. would thought outlook you is very not. very, given No, I it a

is 'XX quarter in XX-week first Our a quarter.

be next XX-week Our quarter will in XXXX.

So XQ to repeat the outlook for is a quarter. XX-week

I'll going we that manufacturing unlikely that put flexibility resiliency is restate given that times, really Okay. pass model scenario analysis. business and through the of covered a have the XX%, We've we confidence we that, but on margin floor gross did -- to we're out just we that. our Stacy. think our that of levers, question hybrid because that have I'll it's and at downturn our your And I the the there few

for for on us operating is run can So we’ve us or And say would that of fixed tested of about that is we with at shared often in commitment that XX%. -- comfortable XX% down XX% we will term. the for levers the be that I that what our long we that north levers XXXX, -- folks XX% is says, and the a less XX% leaves down keep margins past ensure about to stay OpEx is work which nature, XX%. the variable and Vince can as that north we our this we've the of with OpEx company quite a in

'XX. to committed action, So of we continue the at the count for we of that the continuing the warrants but you take health make of the action to long-term to can throughout quarter, And change We'll, environment. to to least us -- obviously, course be mindful business. to we take for us are the next invest us decisions to if see a on right expect

little well, you said? just It into a on like just ticks OpEx sounds what based QX up bit as

read it You well, Stacy.

The Stein next question comes from with Securities. William Truist

to hoping on the question again. inventory I'm hit yet

other companies, of your But are very like the counterparty going it particular, hurt You've imagine it you even inventory going all like you've their own look big job of across parts what still your transactions. on forward? in balance wondering we've on to And percentage straightforward, target of in elevated. suppliers, that is done distribution to it, a below And sales demand services looks seen their I however could a supply sounds explaining they're half though us what's inventory. of sheets your at half good channel, for sort which degree to want that manufacturing customer, chain, scrubbed I'm on the

question. Great Will. Thanks,

sell-in -- let do I'll me and equal essentially -- the part easy me is, of is Let sell-through. that that, to

holding inventory. of I the think goods a not on well Vince we're comment a has sheet. our made from So with customer lot finished balance our had conversations channel channel a standpoint, From that partners some are building aligned and customers. we're own standpoint, I

from to hearing he's them. him to I'm about talk So going to pass what

are Yes. supply our major orders where goods. ago, was building of inventory customers stocks. their are probably mode to right doing their months in in There match and I customers And six our create going It's base finished building product on golden I a think. well-described it I There's customers safety be able to don't are problem. there's but to the don't think compared -- the no to best now. mismatches, I screw think think the

yet. there not they're So

unserved is are demand that to there think fulfill. some still I trying customers

we're our So very customers. -- working closely but with

the customers to all customers and transparent. general, in we're take said, best XXX,XXX that that and between yes, need haven't our from we working big sell-through, and what what very the I'm sure in the what serviced across we of we've that, hearing they to we've general demands is signals match been needed. have And all As able get with our we're deliver. all them, diligently make we small, But

on engagements able our with of think supply pleased service. very crunch be us R&D ready. of those increasingly side. to customers coming very, to partner to supply on positions and customer like the Our with deepen are I the customers -- our as very well And both dimensions, well out the it customers ADI chain with and as are our we're interested side both And companies

And -- in pipeline the we're growth. seeing seeing the pipeline it we're in

question, And please? to last we our go

question last Sachs. from comes today with Hari The Toshiya Goldman

then I quick and broader had housekeeping one question. another question

as business what in is question, on the terms year XX% it, pricing 'XX much And a of about out-year for And think How as basis? think for curious the 'XX, probably the expectation Vince. what of you pro or that then pricing? to increase in was I the I forma. In housekeeping well? fiscal 'XX broader forma foundry is costs was pro calendar is grew, around fiscal did do question my

business, about excited you applications As you are in you end think based most a your where about on which your and But or based on I a your are worried that's or to backlog, be? couple, of they design would which contribution realize about? growth? be the year the conversations, and most of out you you markets ADI. to run were 'XX, if the wins single customer applications highest, terms And which full markets ones expectations diverse beauty end would

Sure. Thanks, Toshiya.

the one quickly. Let first me take

did cost over and was of of that customers. on 'XX, something to a But customers. those was calculation how customer were that our half to We margins. not price that through is of coming That do did pass on I gross growth all costs raise from fairly was relevant balanced passed based 'XX, how course to for about ASPs. the the the emphasize input use that environment we've to want we of to much we to So said

So with I'll Vince that, part. the let more take interesting

Thanks, Yes. Prashant.

the which of positioned And The dashboard we're vehicle, So well a the that about; terms the clever complex. in we're electronics. in power very display are yes, Automotive, talked very, lot very electronics the the displays as very, need the well lot couple very winning there. of think new particularly been in-cabin very a of very, very, of share already company systems, the performing over have last we've years, for electrification of I markets 'XX, which well,

thereabouts. in an the company Industrial as over perspective positioned. been double growing digits or well we're the at So well, digital healthcare for From years X has last

are aerospace a We really energy the for to likely area. least well our business. energy, for expect defense, and go we continue. that's years, ADI the see businesses on believe, to I It's that in be beginning Also, brisk will X that very at uptick. also and and to And stellar performing now, sustainability next growth see

applications. that weakness perhaps, U.S., So concerned? that is to what about I'm of really steadiness India, about where Europe, in not kind and the of in in given the diversity growth see have, be things. general, think in diversity products, summarizes how by we growth customers, XG, ORAN, offset the we concerned likely we'll business I in am

Thanks, call year this at and everyone, meetings. for be us this will the joining I on morning. hosting Prashanth CES

and and a hope booth that, the on where technology Thanksgiving, to We great also auto, floor demos have there. for showroom We And we consumer. thanks have healthcare have a with call. joining across you the see

Analog This conference concludes Devices today's call.

now disconnect. may You