Analog Devices (ADI) 15 Feb 232023 Q1 Earnings call transcript

Good morning, and welcome to the Analog Devices First Quarter Fiscal Year 2023 Earnings Conference Call, which is being audio webcast via telephone and over the web.

I’d like to now introduce your host for today’s call. Mr. Michael Lucarelli, Vice President of Investor Relations and FP&A. Sir, the floor is yours.

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

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

from disclosures. our to discuss Information and the in periodic of earnings are release statements, includes as uncertainties, the information other results about undertake SEC. law. differ materially expectations statements date risks with Actual statements these reports as certain no these our by and to this forward-looking and we’re materials reflect further as to forward-looking which update could On subject described as filed We required in except obligation our only to call.

include of measures, items. financial to today non-GAAP Our in non-GAAP items which to historical measures also today’s Reconciliations comments are comparing included their When directly additional also GAAP performance, will periods. these our special are prior our measures about special results release. and our comparable information measures most from exclude excluded non-GAAP

turn that, CEO And and I’ll Roche. Vince? with to over Chair, it Vincent ADI’s

achieved execute first to continued Mike, Thanks I’m well pleased to and continued Revenue good EPS share single-digits. uncertainty. macroeconomic quarter markets, the exceptionally $X.XX to that everyone. and very operating in billion, of adjusted fiscal was up record ADI margins XX% despite XX% Well, morning very broad much, XXXX, based Gross and up respectively XX% year-over-year, all BXB at was with strength were $X.XX. and another

growing capture demand in the excited and game innovative by the that now future to been us a over play opportunity and and customers what investments relentless and are our in long-term. holds Our on ensure We’ve we R&D, deepen partnerships strong value a for our continued collaboration, We capabilities manufacturing to ahead. that technologies focus steadily increasing the driven our success a long customer for about operational execution. is

by drivers. $X.X our billion XX capture growth secular invested months we’ve R&D, in presented over to trailing strengthen and franchises opportunities core example, For the market

Over the our internal the our ambitions. increase manufacturing not $XXX to resiliency, we’ve modernize also in better million our investments operations. of only address to These enhance period, sustainability but semiconductor fabs invested our same CapEx operational resiliency

release, mentioned businesses and in gain As our we industrial strong share. as automotive press our remain market

I continues So despite to which focus the this our backdrop. business, morning, want on grow industrial significantly to macroeconomic specifically

of total Now, tens of business profitable of segment big also bedrock and sustain perspective, customers thousands ADI, revenue the diverse products half is most a from of with more revenue. industrial and our for picture than market the It’s representing our decades. streams that

revenue technology ADI’s industrial is from equipment applications. in across mission-critical the derived high performance myriad Additionally, CapEx-intensive

that over Our in encompass over and breadth applications. space last opportunity sector. full activities capture decade and billion leadership position depth to to the this component application-specific characterize industrial customer’s With analog, the to is This us the allows has the digital $X ADI’s core building been intensified uniquely the in solutions portfolio fragmented across needs and invested inherently of as market the focus our across spectrum of unmatched hundreds our strengthened that address we blocks R&D applications of algorithms. and

dollar is architectures of more rise for become more driving and opportunities new This new our CapEx, more applications as that and sophisticated industrial sustainable. semiconductor of the intelligent portfolio. more seeing we’re require complex more per unlocking Today, machines content

more automation benefiting and let healthcare winning instrumentation industrial is all of specifically an industrial share the aerospace, applications, me ecosystem. transformation burgeoning opportunity this discuss the and how While across we’re including electrification our and

automation. So, with industrial starting first

to carbon energy increase more efficiency. with create portfolio net-zero. resilient flexible their while more with greater and Here, output on to automation these footprints our and journey the helps lowering customers are upgrading broad their ADI’s factories connectivity customers emissions

an leading U.S. GMSL content at power As across won robotics a additional and manufacturer, connectivity. we’ve sensing example,

Xx. cobot industrial connectivity approach per automation our solutions the design are our critical floor. customers. delivering Also These increased our was the leading reduced systems for and the content time customers’ Our last to edge in robust in multiple solution of quarter, designed by at IO-Link factory

test. Xx is our complexity wins advanced supply Turning our memory This and drug therapies. electrification providing our test secured AI-assisted Xx to for America attention compute. more our is well aligned set applications to results, highly test this instrumentation high-performance design subsector The average that business. of and now to metrology diverse tailwinds business. to content compute across We’ve trends from to North per the as gene thread and secular as Asia additional growth is localization consistent now Further, The to is connectivity growing requires semiconductor multiple and higher. of system the in for discovery

infrastructure. ecosystem. of finally, to for And in grid areas, need on collective The one fastest-growing the growth sustainable our future electrical is electrification driving massive more a

me with you. examples Now two let share

will for the ADI. more companies inherent density demand billion than additional greenfield critical hazards gigafactories, Further, vectors growth these batteries formation investments production to using batteries. and test electrification safety new will given of announced the provide our and voltages, These solutions industrial have $XXX for ecosystem. First, to higher also factories higher producing automotive gigafactories drive proliferate essential of of the in to cell

solutions putting at and into energy path this grids and than automotive to Asia, electrical coming us BMS our tripling a systems the infrastructure We’ve more America, Europe infrastructure. EV energy North In leading in our fast-charging in manufacturers for won storage franchise, business sustainable on industry-leading we’re leveraging designs years.

than profitable economic business ahead, cycles, with trends. growth. of this more durable phase immune translated franchise deep aligned in trailing XX collaborations pipeline and to has fully no more This backdrop. customer Of secular revenue underpin win our and sales to course, our of a as see portfolio, depth with streams XX% months sector weakening despite strength this continued in the and we looking momentum design increasing new breadth But economic our while industrial market diversified adverse the is highly our over is

So we for value is in as model resilient our with future and at about opportunity. customers diverse, employees I’m ADI’s well enhanced optimistic and rich drive society very business shareholders holds large. as what our closing, as

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

Vince. Thank you,

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

quarter billion industrial First the at end our high in share revenue gains driven by of automotive. $X.XX continued finished outlook, and of

up increased down. Our XX% typically represented revenue, despite XX% BXB first markets X% our and sequentially being quarter year-over-year of

end diverse all-time XX% of All XX look at increasing growth. automation, continue let’s and sustainable business end and applications X% grown profitable digits Now market and to revenue sequentially management which This and led for quarters. XX% markets. increased Industrial, year-over-year, has our instrumentation test. hit significant most another markets consecutive All represented year-over-year also across our performance market as high. by sequentially. by Automotive, deliver energy, grew in-cabin XX% achieved another of double revenue, battery leading connectivity represented year-over-year record, positions and

year-over-year. represented Communications, which XX% revenue, of XX% grew

As trends represented declined down slightly in due XX% to offset wired sequentially sequentially weaker strength which market as and deployments. revenue, X% softness of of lastly, declined expected, was consumer, was year-over-year the And XG XX% and comms by timing given seasonality. in wireless

down XXX and points with of P&L. the strategic XX.X% Now slightly unfavorable synergies. as margin discretionary expanded spend mix synergy onto year-over-year, hiring rest balance the Gross sequentially basis tight of $XXX cost OpEx and capture. the we million was

our savings, combined margin Given operating leverage our was with strong operating the synergy XX.X%.

already all have the we million goals. $XXX captured Importantly, synergy nearly of cost

customer we our compelling from unveiled such, past complimentary approaching over combined has synergy how revenue these quarters. will base Investor with our now and Anelise, strategically Officer, these that the opportunities are routinely opportunities few turn our portfolio synergies our Chief As our communication of Day, and to during Maxim. Recall some the Vince highlighted Customer

monitoring were win To progress in design closely that rate opportunity confidence revenue win up And at expectations. still Day. to and Non-op our XX%. the to new This momentum us $X million, a exceeded early, has our from it year-over-year outlined $X.XX, and over revenue. end, All just at told, date to XX% and we Investor plus billion that gives design in opportunity achieving are $XX came EPS increased record. synergy expenses we while is our was new hitting tax measuring

during the Moving $X.X net approximately Recall inventory inventory finished more and this that remains to quarter, our below X. channel we last of We level. ended goods Days leverage balance time while quarter to a inventory rebuild sheet ratio as hold of billion strategy balance with target our of cash bank inflection. below outlined shipment sheet. strategic increase the channel into and our we the moderate on to die XXX,

representing on the the million X% $XXX trailing revenue. cash and months, of for flow. was Moving CapEx quarter $XXX over million to XX

These in sales to CapEx strategic our XXXX our long-term and subsequent our swing between output then geographies fabs flexibility model expect The offers investments our exiting our enhances next be capacity and year to of revenue to target customers internal and a different foundry continue as will decline high-single-digits our our optionality. resiliency of of percentage across hybrid additional mid-single-digit. partners. support double in years and We

to billion we to Over and $X.X trailing fifth generated XX consecutive or years and dividend via This of marking for free of billion cash $X.X returned flow increase, buybacks this raised billion. the dividends have a we consecutive our testament model XX% cash quarterly XX free months, increases. of revenue. consecutive generated shareholders has our $X.X years. flow durable that over billion period, or operating positive just We is our Over $X.X by of of XXX% cash XX%, double of flow XX digit free

The dividend of cash share through policy, with free cycle cash a a look As reduction. the XX% CAGR flow and we dividend XXX% return. our cornerstone increase to we for target used is count reminder, remaining the at this

Now, similar update brief the to backdrop. a prior to like on operating give quarters, I’d

Industrial weak. and highlighted, comms followed while markets. consumer Vince the orders, on remain by First, remain strongest automotive, as

the shipping Given actions we times output our weeks. around foundry orders backlog that coverage our portfolio the Despite and reduced our have longer they same customers internal by remains working rapidly working half this, remove changing no with may At with under our we to supply growing lead year XX are partners. with increased our require. have of diligently one of our These revenue. time, now in environment,

such, over book-to-bill parody next remain below returns normal we backlog more to our levels. quarters expect will as our the As couple

revenue $X.X $XXX minus to second are we be dynamics, quarter billion these million. or plus guiding Given

expect markets consumer communications with sequential XX% BXB industrial outlook, our markets. midpoint We markets in decline automotive up be the once will growth of and over revenue At again. and sequential another year-over-year continued in high-single-digits up our and our our

expected minus XX is margin to be plus basis points. Operating XX% or

but for requirement to tax XX% U.S. expenses lowers the resulting rate our now the tax deferred due tax new to year. This tax expected rate be payments, in tax capitalize accounting is cash Our purposes, the between temporarily effective requirements. to to higher guide upfront R&D tax reflects XX% for

Based $X.XX, on these In inputs, remains be minus uncertain. adjusted the plus EPS or to macro expected is backdrop all, $X.XX.

the cautiously our XX% portfolio strength we well high the businesses, drive However, across resilient positioned Intelligent optimistic trends of Edge. aligned we remain by growth our enabled with near-term, over the industrial Longer-term, our the at to revenue. represent on key and which remain given performance auto diverse secular

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

Prashanth. Thanks,

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

take our please. If please I’ll allows. you question have With your that follow-up time if requeue. question, first question,

first Muse from ISI. of C.J. [Operator Instructions] comes from question the Evercore Our line

would the that guess really morning. industrial taking I good question. you Yes, – my seeing. around strength question Thank for you’re center the the

in emerging markets PMIs focused I new are kind around content think as around lot kind of well as yet, talked on great declining increasing investors globe. of You of the detail a

your How it trends. of much PMIs hear on from, much. helpful? acting is, that is business are your growth not is would emerging so of larger content? some thoughts be it to And some love perhaps color we’d so of on different in maybe areas maybe macro so more why reflected the Thanks very And of these how very much

C.J. Thanks, Yes.

span. from really and a it’s ADI than been of success time isn’t R&D for of this perspective, core, engagement we’ve and by this of the been share I really And plus and in our investing focus. it’s doubling down We’ve sure. think heavily our It’s core our here market we’ve market and for first both chance. an decade, customer foremost, more gaining over dent been decade kind So,

Maxim, very a to very compared – four – in we’ve processing have We as the kind three and able of we’ve had we’ve have of to years, kind bring data electronics, bear we ago, strong portfolio position to able path of but the chain, to, always years with even acquisitions well. competitive LTC been strong the been signal power

pointed as many that think about we’re other out well I shape. businesses when in much talk indescribable the example, script it’s we sectors industrial of better I kind industrial, So, understood, that competitors or well for truly portfolio about consumers. the sector. talk know in are like perspective, not a I from consumer, other

So, I well. as want to point that out

I CapEx across to instrumentation, as said, drivers is content spend meaningful of increased pretty is secular all all see driving the factory that automation the a for dollar of applications, per play. have, more gain bringing also. It’s We level We growth and sensing, ADI. including in content many average changing compute more the edge at

comes And likely see say, the the as drive the the think is primary kind coming that things further happen, of into drivers in think believe, back right when are, but stabilization. zone China months, we yes, we I are even to they which And retraction I positive So, business. will of a zone. I would well, PMIs now, over

C.J., just just one this more is thing that help of kind Prashanth. the folks to growth. breadth put of I’ll understand

submarkets America, digits Europe And China. you if were look digits at double Japan, again, a had double our increased in of most of geography, weaker by and them year-over-year, we all up strength quarter-over-quarter. and it up year-over-year, offsetting All

very So strength was broad-based. this industrial

C.J. Thanks,

line Thank Bank you. of Arya next from Our from comes America of question [Operator the Instructions] Securities. Vivek

I it I would kind how this year? historically question, happening And pair What that on for first for [indiscernible]? actually half tends related had of the starts my is the better can half. prevent usually, ADI, second to if Thanks taking look generally, view book-to-bill a or remain be to than become, question. before long which of that from support

Yes. Okay.

said maybe let I lead me But So you do walk backlog on to a through clarify, want answer book-to-bill. Vivek, take times that. help cancellations, to

one. it sub thought was say I book-to-bill one. I Our is heard you

ago, Our for you one. was I’d through or and sub to we book-to-bill as told months is expect We happening backlog. carry a quarter get that two this couple of another

now versus record to we’ve had So working rationalized customers perhaps that nine while we’ve with months backlog, backlog, the customers on been disti our need our and a they months with on the partners placed are or get today what for saying and this us we six got orders

book-to-bill what below is when progress being one. ago had very we long reflected in This that lead time. is ratio

two for it as parity I back to will think below that probably be we get another quarter backlog. normal or

is definitely it’s imbalance better, getting but supply-demand the better. getting times, Lead slowly,

We’re getting hybrid more wafers externally, thanks to the model.

as flexibility deployment about we’re the as talked have investments We the to do that as our CapEx to production. well making with we’ve increase internally

to have So, over the through that’s quarter, it we can to today, about continue the weeks under portfolio meaning within and half. ship XX% the improve – second going XX the of

we’re the way year getting demand. getting really So higher at backlog, place aren’t takeaway and this lead falling, is And sort we given bookings true visibility, positive to customers of compared for and quality ago ordering stuff times for the as feel future. into to

a second take a on from soft looks the then because it like trends? of anything half, more soft Prashanth, landing And

out I’ll wants resiliency just So, I here. want but And about outlook to feel the comment. to the We any industrial. too a if and quarter give long-term go couple you of don’t good make far, the auto in Vince for second given comments

year a two still of XX% those I come sales said, have for and we segments, backlog. from As our the

to are Beyond out we make backlog and have it’s a the lot macro but call, we also the there quarter, a hard of there’s changing coverage, one strong that second fast. on understand things hand given uncertainty

to is comment pay going on this, made any Vince China. to, to make predictions not I’m attention So, a area one and

in If consumers the and accelerates number demand companies you add given of on half on second government longer of that a the optimism more anything sort I for watching are be term, China. – to and would good many that Vince, would we think that? be want organizations.

company we as into think, the built manufacturing run clearly way model well a the operations. as I Well, Prashant, lot into of resiliency the the business we’ve

tell have before what cycles now who many we engagement going is the that second better what a we’ve than in through never bring. many, our from and customer a are But – knows positioned been So, from you I history to been half standpoint. we is portfolio, can

So said, very, hybrid probably upside and model the engagements, years is of us our kind to it’s customer taken of ADI our this manage given industry we’ve capture next and – double And – that strength, to well very doubled as enable I place years. XX kind the we’ve of industry that got XX the this the manufacturing the from downside. positioned likely to in is us portfolio, XXXX, to XXXX believe content the over builds I

Thanks, Vivek.

please. question Next

Thank the comes Instructions] from line of you. from Stifel. Our [Operator next Svanberg question Tore

on and Yes, thank you the congratulations results.

Maxim moving on revenue on cost should or areas synergies end So that from synergies, are product you see $X the there, whether to the there eye where billion synergies? we particular expect of sort that now to categories any we’re markets in an that keep

me in give remembers – so you Vince. talked let’s bit everyone and a we that let do what parts. about then hand context that over Yes, I’ll two of little to

we’ve about synergies. We closed great the feel on So cost that.

we’re We now synergies, focusing ahead of on schedule. think about synergy we’re in and So stages. revenue that tracking

then socket, socket, shipping need identify volume. need So we to the hit win the we to to customer, we first we begin and the

internal So we tracking those stages material. all are of through our

incremental. target bar come As holding higher $X of Vince in Anelise is deliver I a to to – gave said, to that. a than April you her billion

on got early track And we’ve $X she’s So success. – seen billion. to hit we’ve that

you’ve examples Vince last over quarters. a couple think couple I the share heard

as non-auto B as to cross new. ability well in into example, For which is GMSL A customers the our – to sell put

thinking the here some me are what let about? we’re areas of that for Vince So other off pass to

we with and announced as in two area, in where power and And power particular the out combination, particular, the power for Maxim, power pointed and performance fact management compute we pretty Tore, was Yes. example. When underweight, are where the same one really thought data center, ADI was skyrocket, market important, compute areas density in much the in thing. we

automotive, we that application GMSL, as such center and very in based can the more I positive data the on not very as a – surprise it think only well portfolio mentioned. specific So a we gaining to areas The is bring areas more portfolio bringing we gig as have now that such competitive other automotive. is power connectivity link Prashanth traction also as industrial, as serial that more we’re multi are but to

BMS, the we’ve Maxim of sockets wired strengthens in that top XX got OEMs top well. BMS portfolio XX OEMs. XX as the And

I prepared the very, I/O that ADI’s in industrial, brings complementary that data in bear So mentioned is very remarks technology with the Maxim solutions. to is link path very, very,

optimistic So areas multiple I in what observing various could about based think channel, here the what with want on which I always ever convey was more cross connectivity portfolio. I now markets customers think is I we But than the I’m and are and enthusiastic there more to the I’m to a greater actually do with that message playing. ADI we’re

That’s very helpful. Thank you.

next you. One moment for Thank our question.

the Our Citi. from of Danely Chris next comes question from line

Hey, thanks guys.

Just and on the more the shortages. a lead clarification times little

inventory. aren’t than quarters? portfolio Why of normalized” lead couple lead Can XX expect a So has the faster? talk that it then got what plenty lead and would these Thanks. of when “largely normalizing of you And with a times little months you right guess, I half And like weeks seems to, flat you ago? less bit about three times you now. was mentioned that the times

we’re demand the quarter. to months within wafers, the down addition internal think got have will that portfolio we’re more supply in – But better. were next Michael – quarter. me times three getting me we half And shipping remind the to we certainly overwhelming one the The to way to the lead so where is or let is Chris getting that in majority our two, the production. balance we’ve about getting – of have – within And quarter ago. the so Sure.

books desire in kind a inventory this part to in more partners of when because due mentioned, uncertainty to The clearly very much our being of and there. mindful build keep great we inventory our are period much channel I to uncertainty on as putting out there’s we’re ADI’s is too of

terms, channel think stocking So that lead they be times more get can right us channel. about what’s what to the we’ll reliably in – our then and count able improve, will level to partners for as need the quick on

And to was Okay. your where Chris question, it quarter. the beginning

metrics that portfolio. at probably of beginning XX% under look quarter you weeks, about XX the of was If the

So even that. a I And laid XXX% we to doubled close get to sooner Vince number out, Prashanth get exiting hard want know we and that is than this pushing it to year.

short think biggest lead are. is at I high the times the the the takeaway quality lead more times, bookings

see we the why want to long in true so demand demand demand I reduce lead while to is what does come harder those strong think underlying to is Demand as times is it environment. that’s what times is and it’s continue right? lead of strong, in take a strong,

Great. Thanks guys.

One next question. our Thank moment you. for

line the from from comes question next Bernstein Research. of Stacy Our Rasgon

square expect question. backlog. Hi, portfolio my worth be be the within question. backlog do times, it’s of be? way normal. actually those a like a ask to getting bit the the trouble of that with should for having if it dumb things? the Maybe taking little How times shorter I But of to backlog like portfolio times year’s squaring a where two It guys. together XX the feels back of do Thanks the I’m majority majority is are you XX-week weekly when to getting lead the other Maybe lead to has

delinquent. is us want is on also they perhaps delivered. think us, lead your when elements the they I the the when of customers product extended, The put of about It it Stacy, – get times you’re – that how that missing the that so thinking is tell assumption but not. Yes, backlog orders

past to due is curve visibility and a there’s shipped against. backlog. it needs be So It all that that is to not

see. Oh, I

Okay.

know that shipping months be we’re out. six [ph]. so placed they to okay, – you you’re this going you’ve We got and it orders in to So

you you to demand in majority expect expect we’re backlog where be? I So within Where do portfolio the for do that you and say backlogs the to be is standing to given a shipping this the see once, pass guess what of a quarter. quarter

return we back the still in And what meaningfully Well, about have look to future us a we for would to on XX we give us because then for that the let’s backlog normal let’s that was there essentially but we – weeks to would of we COVID, notice. say can pre get if to a of normal If if customers go then XX-week there that best – less backlog. out quarters, what than quarter, quarter put at like in it return incremental you. order start smaller some the would be perspective be that’s quarter’s can they does know

what like. that’s looks So normal

visibility supply, future, in Now, today. customers, some importance our want given greater demand we the don’t that I challenges benefit to and of the may increasing but products the from call to Analog’s

it. Got

mean, does because right way guess, over are think is it? is the you about pulling the not I effectively that So to it? right Or now this backlog shipping demand

would – that. would sure how not No, you conclude I I’m

this not product – new those in that customers what bill We we are is have up product to are historically us, as want we tells in to we this book QX, QX, we incentive is in us. level. not from and product want put that at it below hence I they orders, orders on this this visibility they’ve have That demand But that because for. that QX, why given in is are have had our I – backlog the us us matching one. a gives

we are sell of through. the thing demand signals run rather run other or in demand. is we’re our pointing sell Yes. out, demand on POA that One We basis Stacy, factories our – POS than

around gives demand integrity the signal. us it So more

Got it.

Okay. won’t monopolize I That’s much, you Thank anymore. so helpful. guys.

part that question. for Stacy, three Thanks

You for question so not – call your we’re to next next have going quarter. the use quarter,

question, Next please.

moment question. our next One you. for Thank

BMO Srivastava line Markets. the from from Capital comes question next of Ambrish Our

to I you Hi, have had site. actually Mike, thank focus to same as bit years, if much I analog long-term out any grow a view, know called to I’m guys analog a faster on to than result. you. I wondering that a X.X always one. long-term. And the growth want going the here. always X% and I to should for the keep higher and it industry bad a over felt the seen don’t you all we’ve going of you I XX%, get the Vince, themselves on wanted rate for share was over odd the you forward have the Vince conversations was that

how even for wondering about five out just or was think secular four I and So for broadly you and growth that, industry analog the years drivers semis. didn’t bunch Thank you of called a analog ago exist Vince. you,

in mentioned, ADI market, Power speak. per ADI’s by to Maxim the into trend I LTC that more And That with TAM, of opportunity portfolios. as us the core, CapEx has prepared gives Half are tap our so seeing ADI of now. play customers. example, Ambrish. been content more dollar years industrial invested to the, in the more, have thanks, Yes, coupled TAM the pointed space, remarks, and strength, which in we That Well, breadth several I has for think, for of data path. traditional out adding strength, we is as been the the I of portfolio the path, data kind analog

half is other power. The

happening with when So the And, what’s prepared and $X business, our with automation you we’ve in depth. industry, healthcare which about now breadth remarks. is getting for, that a portfolio defense, half performance of and see instrumentation year there the the, on greatest the healthcare, billion digital and highest got a kind over in the coupled next and the we’ve talked aerospace year,

to very, growth the very bullish drive market. about our We’re in ability

our innovation compared quality than on we which for we more competitor. The analog focus paid. get and market at to We to that, other get our the we through times high driving point biggest that the is revenue thing I get out growth of large, want ASPs three

focus we on shipping So I point volume. want to value make that the versus

way think being the over we our sector here, performance than can I I believe more structured better company able the of business focus all we’re growth ever. value about our the the model, do course talked as and drivers, on to positioned high the things on a capture So and focused we what call with we’ve with I’m

Ambrish, things add. to Prashanth, a two maybe just just

long-term our First built growth model of our all is on segments.

So to greater be the consecutive to strong for to years it. all very off record contribute we’ve segments XXXX. XX% for start numbers with today, But is able that. growth. certainly of And we’re than very, with we our important an a to industrial two important, of that We’ve part look shared operating had

as Our X% historical unveiled outlook, reflected said the versus last in And prepared rate. ADI in to we April, revenue which the think already have digit the as is we as a remarks, Maxim, Tore’s CAGR a, was addressing, we of synergies well story. it with from which growth really mid-single XX% faster the question have idiosyncratic delta I we sort to revealed, meaningful

supply the they’re I roadmap, ADI’s to it chain want them. dimensions. crunch the those bond conversations to in certainly comment supply. more across But just together of what and with can understanding I’ve particular, how collaborating to it’s want we closer term final add two across do we the conversation, comment Ambrish, intensified this, years questions when from CEOs sector consistent and Irrespective with together to technology to also the I globe Yes, comes of to one two tightly one three over part last got more on just final how in, this innumerable get add had longer

way last sentiment years last better positioned. we’ve ourselves and three I the we’re the that’s So conducted over we’ve, the given the think

has strengthened several been augmented is last brand Our years. the over and

as think strengthen will market better I got of logic why opportunity. why yes, lot will positioned the So we’ve be strong ever to a than and capture ADI to the

Thanks, Ambrish.

I’ll jump to on you. get Thank in queue. want mics. I back don’t

side. Not a bad

Last question?

please. question Last

next Thank you. One moment for our question.

of comes question from next Sur from line Our Harlan the JPMorgan.

auto bit earlier. portfolio last probably There’s resilient, my was CES, remained especially percentage to half and design more SARs. as last morning. demand by your industrial strong businesses, growing good trends, automotive a guys uncertainty Thanks at the so sort this confident I in as global mentioned little second consumer Hi, month automotive taking that mentioned, on remains a have soft for PMIs EVs question. starting maybe comms in right? to due But your team pretty business of And is double-digit on unfold. and call, wind flattish, you pretty earnings the year know a you

third to So, I research, the look mean, year. grow some of is party X% if forecasted you to X% this SARs at

strong profile the on confident driving fiscal year auto? percentage still is team So on this double-digit growth

Thanks, Yes. Harlan.

comes look down So at if outperformance a couple it versus to SAR, items. we our

and length We’ve a you and And that GMSL an spoken mix share ICE as EV cars, taking vehicle there’s versus as EV content First, content product, customer our a BMS premium are higher there. AXB car. so growth Xx market base meaningful of adopted on our traditional real at we’ve of our high and mentioned, our got content really adders, per key is our across is they’re accelerating. all

we that to we’re performance the of capture some because think than able bring better I to our And others. value perhaps customers,

with to good to to three that still working, that multiplier we’re continue have Xx Xx pretty a, feel So we’re, on going those we SAR.

I as prediction don’t make want to So is. what SAR a to

you’ve Xx Xx lands. to that lower a, number, to think a a year, But wherever out of So has for digit IHS there. I we’re I the expect mid-single mid-single kind number digit got us be

Thank Prashanth. Perfect. you, Insightful.

let everyone quick and us Harlan, on you joining Thank call go. Two the guys morning. thanks you ones before this for I

was a as to Vince a normal, keynote call IMAX earnings next held be Technology World give will Our later Forum. than asked week at

see not but half weeks three earning a and do weeks. after So when not The half closed, a two and announcement. is your panic we

series Second, market a into we’re dive months. deep coming in we coverage planning do a our on the ADI where restart to

the The one of we on be will today, electrification. automation, first efficiency, some topics hit on sustainability, energy

stay interest joining So Analog and Devices. for again for tuned And with in that, thanks those. us

today’s Analog conference Devices concludes This call.

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