Analog Devices (ADI) 24 May 232023 Q2 Earnings call transcript

Good morning, and welcome to the Analog Devices Second 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.

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

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

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

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

turn that, CEO And and I'll with to over Chair, it Vince. ADI's

sectors. and EPS premium XX% our XX%, again, and once margin surpassed the ADI you an our discipline to automotive Mike, share growing earnings record industrial And this nearly good revenue year-over-year. to $X.XX I'm execute Gross Notably, our financial was that consecutive and commands our We XX% quarter. Thanks, billion, very record XX% was revenue and well pleased strong Well, portfolio by all. growth and delivered to morning innovation year-over-year. operating in impressive in XXth was driven second of continued quarter per share. the reflecting margin increased and results

pronounced backdrop. was on an is geopolitical like the in customers Europe I'd and Asia, their economic at and demand beginning current three business inventories. point previously adjust We business years but while is pace. most forecasts a shared and to inflection rebalance due of that measured steady the our their moderating, After North-America are uncertain moment conditions. to growth, This at spend more a Now to

will We second XXXX. persist through expect of normalization of this half revenue the

times given proactive backlog, deliver Importantly, soft of a delivering our improve in we're on lead and conversations lending. to right-size position our decisions and to our goal customer a

Stepping mitigate many successfully a invest more back, cycles even before. define fluctuations, areas course, better by fortified helps that ADI adapts ADIs durable an hybrid an weakness, that model we've and resiliency, characteristics challenges to unmatched of A franchise, market defined through navigated products, a of macro many, times diversity and future. instill that and demand sheet. economic our has will applications. balance manufacturing customers These critical Today, in

that of and unlike that of the will across markets digital like dollar have secular And defense including Notably, numerous drivers the our areas growth more cycles, we per transcend all macro exposure electrification healthcare, have CapEx. semi-content previous concurrent economic aerospace, we ecosystem. drive to sectors uncertainty,

market which healthcare want that highest in requires Healthcare one that industrial performance. is our So market. end, to a highlight that for I it's end business, is of digital to and ripe renovation our levels resides the

acute-care specialized to of world hospitals, and and unfortunately Now $X decades, XXXX not several health spending healthcare systems serving leading amount United where than trillion healthcare over leads GDP. currently, increased spent approaching the on still most large, critical more in steadily resides. States centralized, with conditions alone, or with the in has reliant patients XX% majority of U.S. international along expertise does chronic in Both the are world’s correlates equipment This outcomes. the with

accessibility, a the diagnostic therapeutic proliferation of consultation patient and affordability improve technologies. This physician distributed of clinical vision and edge-based fragility The the of the efficacy highlighted healthcare the system, and care. through can need only realized grade be system remote the urgent of underscoring pandemic for global to decentralized

to system early products opportunity healthcare track investments from new we're and focus integrated our that solutions. million level The portfolio delivered macro promising has digital power despite core specific expanded result, signal this high technologies our now have backdrop. saw more Over processing, achieve and our seven the $XXX annually 'XX a revenue years, a made ADI highly time strategic R&D decade and a in healthcare straight area record ago. watermark sensing full over on franchise generating to application to

has Importantly industry leader ADI become an primary areas. three in

critical This CT where scanners, highly simplifying minimizing we've products quality, our ultrasound. maintenance. in digital radiation image enhancing field system The integrated dosage, positions like improving and and Today, X-ray functions. strong first imaging, includes areas medical share performed is assembly,

Next and instrumentation. is automation

For required our applications us broad signal to example, pumps, create the portfolio ventilators in optimized enables infusion as such and defibrillators. chains

monitoring. health personal is Third

lower highest are power used performance clinical operating both performing wearable are compact Here, wellness functions. more products while monitoring and and into our designed throughout the the room consumer with devices versions ICU,

Now how compact is The let equipment industry of migrating system. to systems. Recently, design mobile share ADI of as me for their compact the ultrasound of ultrasound seeing the large solutions leader from ADI's examples future healthcare. a more market shape won some based the we're cart

lowest our voltage signal smaller the power leverages portfolio technologies, the high speed a chain quality deliver and images highest at power solution complete footprint. in Our to high including

from to locations. even echo an developing in hospital care bits hospital technology enable also to the most grade untether the We're the and remote ultrasound modality

the algorithms. performs get uses resolution, handheld image beamforming Our analog functionality. or This in levels that at the quality, power performance user cart solution functions data ultra-low without proprietary embedded compromising to form, a technology low extremely and acquisition based allows power both with software

precision lower the the robotic motor at and of complications, suite control, include world's to We control patients. the for Currently, management hospital largest only solutions. designed with processing, about pain levels stays, and suppliers use technology surgical moment power surgical signal fewer These of our of flexibility, already robotic and and a XX% sensing for surgery. in, precision, turning greater during benefits. Now shorter despite surgery procedures robotic many

to And with significant monitoring, deliver are dollars monitors per signs grade in and years thousands consumer in In is clinical health vital content the converging increasing area application growth wellness of personal system demands the with poised exponentially, performance of the wearables. ahead. this

our suite has Now market an sensor including by ultra-low of technologies, which the is AFEs, emerging strengthened comprehensive for Maxim. been technologies, our this microcontrollers integration and of power

management, technology. diabetes in monitoring long supplier example, leading of glucose For ADI been a has blood

continuous Now glucose the we're working next-generation key customers of with monitoring. in

increases efficiency the more much the solution and And there accuracy level extending days weeks. come. sensor, to much, thereby robustness, of Our from glucose its is life of power to

clearance cloud-based expand that the delighted I'm hardware you is to chronic innovative and with first the healthcare into share service. more FDA connect with our non-invasive significantly our this segment disease connectivity products to I analytics potential look-forward reach our extending undergoing are new as has We to with and device sharing our medical (ph). market management marketing that

So big healthcare, underscores healthcare. markets. digital on domain our picture, apart we're to deep our of go innovation. system but unrelenting revolution Setting shaping not expertise to ADI's us focus supplier in in ability and from the only in all pack, from component the

edge. evolution, processing born the enabling ADI for near-term ahead. of about is The So uncertainty, lie the at And is there the next the data innovation of where waves cloud that opportunities to is for gravity our shifting center excited data of long-term from this customers. is the are we while center

value these to year. a be address period over process full many want be Prashanth, build for finance a announcement CFO ADI partnership engage during end hand and extraordinary fiscal you and his Prashanth of remaining years. underway. has I we community in an I identify that before his through now Now to for role his a capacity that our and continuing over growth want fostering including to to our will ADI, at investor creation He leaving all next contributions help is past strong function Prashanth played know recognize, will Please that with important search engagement. the of he of robust the while I for six and

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

lead this phenomenal honor world-class company and the organization. Thank finance you, has serve as to an Vince. CFO been It this of

As Vince appreciation a want to and Vince, during world to deep but of ensuring quarters. coach for with I coming of mentor, transition committed forward the to semiconductors. a I engaging as to a mentioned, express introducing this me my smooth also do look I'm magical both fully all and you to

often boss says, global the the we my truly bedrock As upon which built. are industry is technology

second to Now our quarter turning results.

will again growth. $X.XX of of billion On exceeded the quarter consecutive items outlined usual, As once and by revenue on quarter, automotive. press industrial of with represented adjusted grew highs release. another which very and in a ADI's XX%, my in exception XXth comments guidance sequential special strong an year-over-year all-time basis, we midpoint exclude today's We of the led basis, delivered record today revenue be

by withstand up they revenue. X% market, our industrial, much sustainable finished Vince down of are profitable just business XX% sequentially. together slowdown positioned of broad-based, defense. growth most and to XX% was These cyclical highlighted and and energy, Year-over-year represented markets it in notable of gains aerospace addition in industrial healthcare, diverse represent which revenue Breaking XX% and better to roughly

revenue, in-cabin growing content year-over-year. combined fueling drive nearly of ADI's XX% continue based connectivity Automotive, and growth battery which management XX% which XX% again solutions, strength, exhibited broad and tailwinds represented year-over-year. leading once Secular XX% to increased sequentially

COVID correction this year-over-year, end due complete. both is softness, to sequentially Communications, And year-over-year, lastly, to market. X% which consumer that revenue consumer revenue is represented across close the nearly XX% ongoing and of its more quarters the decreased was of corrections and several at inventory after than suggesting XX% revenue, down of low, sequentially

our of and margin $XXX last in an record. due on slightly was up set was product to lowest QX at that our $XX million a Moving $X.XX, new margins XX.X%, year-over-year. quarter Gross XX% typically and roughly All million EPS Non-OP mix. in at up XX.X%. rate. impressive to with year-over-year is favorable op line P&L. was basis came the rate XX.X% tax were sequentially up expenses Remember XXX of points OpEx told,

sheet, ratio quarter a basically times to were hold the and inventory Moving our finished of cash Thus, inventory $X.X channel. many we weeks and decision of We've X.X. unchanged. inventory goods our versus to channel leverage with the days approximately ended more XXX, discussed billion restocking increased to balance of the net

of purchases. second balance outlined die replenishment inventory we we dollars as will half bank the moderate ago, we the and quarter decline external As a in expect

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

declined support expect enable investments As strategic our as mid-single subsequent a long-term Day swing These our digits. then Investor longer-term partners. CapEx sales of outlined at high-single foundry digits XXXX and our we years of capacity in and to fabs and will target between plans be in we percentage that our reminder, growth to a our

our enhances financial of additional It geographies, European flexibility different it the shock spend does our provides during Acts. offers absorber our and benefits and the grant resiliency. of an we customers include The note, hybrid CapEx Of important that not our U.S. both tax of CHIPS anticipate from funds model and both credits across the optionality times to-date European the U.S. volatility. and

XX Over flow via revenue. dividends. XX% to long months, free over remain We the billion committed cash shareholder free shareholders, or to returned and billion $X.X flow $X trailing We've policy billion XXX% cash our billion we in of of returning buybacks $X.X term. friendly the generated of $X.X

outlook, on business additional Now some details do I provide before to to conditions. the moving evolving the want

continue XX% At in and under gives timeliness customers confidence weeks. over to times rebalancing Vince our forecasts This adjusting inventory. of our remarks, shared shipping his customers lead with improve the our portfolio are high supply. now the into in XX of same time, As

parity has outlined quarter below in remains as result The all typical book-to-bill due the returned in quarter and coverage we backlog range. current our to markets its last

a just continues to levels. still As under regular year result, revenue, of total decline, a Xx it's but backlog

deteriorated second quickly lastly, after Asia, sell-through. channel impacting in to strong the a And start quarter, demand

result, a the are inventory in quarter, we to third below As for in channel total region. planning be plan reduce company. we sell-through And for the this to sell-in

industrial of low our digit third plus sequentially, down minus guiding to million. be to we consumer At $X.X expect auto the increase sequentially. these mid-single are communications to be will while and outlook, down quarter we midpoint $XXX billion, Given sequentially, dynamics, around revenue XX% or

plus or margin Op The margin a increases, product the in mix of decline merit to changing and softer annual our op reduction manufacturing to be XX.X% bps. utilizations given is XX minus environment. relates expected

to Our XX% and or on inputs, is XX%. adjusted be based expected And minus tax between again rate these plus $X.XX EPS $X.XX.

environment near-term our exposure is the difficult one, trends a to secular While the help expected diversification revenue to impact. operating and key mitigate is

utilizations. manufacturing hybrid minimize on internal moderate impact us the our addition, help to quickly volatility. flexible In have This spend wafers include which allows on levers reduce model, we to margin key external and us

Our accordion long-term function, while reduce allowing variable still in like has to which compensation us a true key spend, areas. program, investing

durable free earnings share of and a enabling As advantage expect result, take generation, solid stream, to a we cash price us any flow dislocations.

to off I Mike, be June, on doing want the in ADI to opportunity gigafactories. burgeoning will the for handing of we a remind Before folks deep that in dive construction

And Mike for it to with that, pass let me Q&A.

Thanks, thank you past of together. comments echo Vince's we’ve the you, I six for not and partnership Prashanth. to yet, years, it's I warn want but calls couple done the will more earnings over

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

time allows. have a please you follow-up take requeue if If and question we'll your question

first we have With that, question please. can our

from Bank Vivek with question [Operator Arya Securities. Instructions] comes America first of Our

question and to best and wishes Thanks for Prashanth. thanks the

question is is automotive And the what that had has limited is and or So that understand ago? weakness, both? three non-Asia thought to incremental my about to trying within where changed you industrial versus I'm demand, months Asia really how that Asia what is, or

step share long-term we I and per quarter-over-quarter, increasing and a It's want your with is Thank Vivek. because answer, back story to that a to shareholder of at on take have (ph) dollar work a you, the that together. I the what you. tells the before value. do delivers get look but which Vin, Yes. year-over-year content Everyone is CapEx, been few quarters believe pleasure still we think gains -- of do I you, I Thank to focused

is digit If at below midpoint are this and year-over-year. up the auto they are business, you and industrial a PMIs And guidance. Industrial look our when mid-single mid-teens SAR at modest. XX auto comes it and year-over-year at auto of roughly call relatively time

of and our is less will and -- CapEx expect accelerate units the dollar times. going to times which to sell, good we're increasing we what outperform, bad number decline customer business, content cycle per the our So while economics our in dictate the impact accelerate which share and gains our us help good of means in

specific question, that was, piece recent over of of more has the information year, new developed definitely To the China period. sort your the over

did We quickly, This to got that office of New China than of we've across channel both and and see broad-based had And in little are the quarters in that higher uptick we're three the following inventory was markets. kind not it's a the of on in fourth. -- share but an resumption what's we is have the the and this Chinese there we decline Year, a a fade or result reflection return expected. auto. issue. industrial confident going expecting We did a is those Very after

would And we've industrial it all as characterize America, those falling and of it's up talking Outside Comms strong that say consumer, especially I'd auto North as China, been well, a measured I those not those and about geographies, prior Not weak. rapidly. remain slowdown. holding but in as quarter, and it is relatively Japan. was Europe more

you. Thank

Thanks, Vivek.

question next Tore comes the line Our Svanberg Stifel. from of with

great it's you. on inventory Prashanth, you. you the together months, My few Wish all best. Thank levels. but know with all anyway a been best. and is wish question I we're the you Yes. utilization more for working

the you. your what's second dollar plan second you in on that the it. a is you down any appreciate give So talk coming would sense if half, really of about inventory did half, us for utilization could where extent today, but Thank could us give in for you the color terms

been with you. Yeah. you, It's Thank working Thank great you. Tore.

model, normal our and that builds, quarter hybrid a you our internal of say, us we three capacity utilizations. start about something two start in we second them and die keeping building in would softer lean. allows basis, demand tap -- remarks, because balance the our what factories opportunity also see channel down that both out swing to with closer So, here, an taking, as we're Utilizations, (ph) the we is are peaked I and external the has to our in we're remain started actions to manufacturing From I reducing the bank given from think at we have is in internal in normal mentioned ago. wafer on my prepared expect going to getting in fourth is so elevated we would dollar higher still which is levels or the quarters our fiscal brakes should which This to inventory, levels, than consider because quarter. trend that inventory as inventory dollar

outlook you little the give increase gross the mix was merit XX.X% in variable (ph) assumes come quarter they little it where also bit a that And the offset to by a That's margins gave, margins OpEx down up then, in are about Prashanth based context, from is compensation. mentioned. we operating and Tore, utilizations, some it’s today. third on

kind that's probably math you XQ out, XQ. utilizations higher don't you that. said, look after of And So go as as then around the in

Just kind half back year. of for give you of the a the feel

Great. you. Thank

to the question. one. go for next Thanks We'll

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

Hi.

Hi, hear you. We Ambrish.

sorry. Hi,

too as pleasure lost through for I to this well. And I the quick went come a backlog. just you with comment Thank you back you Thanks. you, just sec. to Prashanth, Sorry, wanted a for little working me. bit

where but ranges So as coverage the you Xx at typical it and book-to-bill this backlog is below said, regular the levels, point.

what means. that So really I unsure was

should the I should of go from importantly away over comments? as the that conclusion be quarters, then those take we next More lower, right couple book-to-bill trending is

-- I do in let's this let guess, I me, What would pieces. two

no points you view our four two these But sort quarters, weakness last the correction Obviously view half. history, Ambrish, is about downturns if talk of somewhere and it's we're But on of over at have that, let's a of to that correction. for going that. to between look second for the around this most First, our same. couple

a this think across First, seeing correction no we're because really market we rolling is better-positioned. I obviously as are that do the fully immune, market, but

is the forward. It's consumer, and bit last that in auto, going that of to a prepared you consumer mentioned Comms softness, starting we we're the of agree us, out go important some quarter. about And point of the as I do not little with. seen auto probably worst largely actually function a -- optimistic SAR the being industrial. we're last strength We've couple we think and areas have with quarters going over continue to and correct see Industrial us more the would We in those to really to but that's just remarks. to activity. some is of behind be we a

all is of are certainly a that sort China markets, and to current is normal was and the call quarters we normal the levels, this about sitting the that where want a to a decrease, pre-COVID now basically some now you that's to geographies, bit guide and industrial couple better, bookings to but to book parity, all be is that's which revenue, they're auto a for point out year had continue pretty that. ship takeaways on the we're -- markets, back for backlog the and weakest of broad-based means were hit to total Tore's in which did back question backlog a coming From quarter of on all and overall said and will a we bookings think levels, book-to-bill backlog. I at the little I on below that that relying standpoint, What but that means is,

back you. follow-up. Got for it. another I'll queue Thank

Thank go you, We'll Ambrish. question. next to

from the comes with question line Joseph next of Stanley. Moore Our Morgan

Hi. Great.

to that, lead are it aggressive time continuity? XX weeks. I congratulations reflects of out amount over that Can you seems my real being orders Prashanth. to pretty you're the get you when backlog of know backlog. booked XX a are scrubbing below out still like add pretty can about -- and me placing Can How you've people -- a How much And decent product assure within have you demand? times just XX% still are sort try can getting you talk people then, year, Thank bookings, Let describe, weeks that been to confident lead XX. beyond you. considering that of

Yeah. Great you. question, Joe. Thank

kind right. that's So roughly several of first, about we being a talk value, yes, exactly you're When phased in year backlog over quarters.

customers we've turns where from like. that levels what from in to dates sort sort looks And operated is business. that delivery that back are always pre-COVID us gives current percentage confidence a quarter's revenues in of the quarters, the have we of that future to which So there of now, comes future we're stage

of we're manufacturing So our to the lead capacity down with with normalcy, they've back that as state times additions. improved

now the expecting our remain we be that, others of that help relative what that need incentive through no Now, a impact with confident to as giving can rolling mute the going to it's mentioned, you're very we were quarters Vince orders they seeing and advanced to sort out the transition And I quickly. the for we to keep have is us going exposure, as book-to-bill that to mentioned, most in reflected notice, rate. there's given significant couple that's customers but being hit story I pretty end And talked But us, impact they a get the again, us. content market has for macro we of expecting. are

auto will can't comms pressure units know give are we we will content quarters. have purchases. you sorry, of, behind a And for consumer couple good quarters say except pressure and for see industrial phenomenal to and really units a there it depend we of on on largely on couple of story auto, -- sense a Consumer us, growth we a

Yeah.

used It the expect able be think the at on a changed very to world turns customers Joe, to operate that rapid be have behavior. cycle. I think, I to margins, our their

supply. but And that continuously. allowing the think we're long are in customers what -- that is demands that, with around will behavior Now aligning conversations persist, those also having change I long-term persist longer-term their will or

and perhaps we've got new has somewhat, changed normal. I the So think behavior a

go Joe. next question. to Thanks, We'll

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

wish guys. the a a, more the think some I to I and my you it a Do function I guess retiring Prashanth. of congrats do shortages going or I'll too. you away was What was think Thanks, just it? I correction. they a bit start people has little and unchanged. there. orders now businesses mean think bad business always to get. inventory can years -- how do then And can and cancel auto out had in it they your the doubled question tripled add triggered your two had color just last could on you I industrial

So it what for the October should like think beyond? we quarter and

don't Yeah. call it I a would that trigger per Chris, I know se.

we've as rolling have of that I is our that in growth we've on parts -- been has just through think that I sort mentioned, pressure market and overshadowed of some been comms this. seen It consumer. the enough there

which flagship little from the environment. starting impact to the is bit feel really interest Now higher a the is rate industrial, of

coming is about recession call pretty talked as market industrial that's a healthcare through. and sizable So But aerospace the business. Vince that that's of business, again out very portion defense, energy our I the resistant, we've would well that got which as that

And they was with your what was as I question not that second issue. that -- has share macro what I in the from of that And the and side Year, the they to think market. question? were I surprising think New again, stronger we to Ambrish's mentioned, a it's issue that know reopened not on bounce got part Chinese China, piece happened. and It to expecting I is, we the what is, perhaps recovery is COVID a mentioned us most of other as

bad do on beyond? think could Any and October get? color how Just you it

XX-year I'm let cycles this multiple who going business, going seen take -- to of that. Vince I'm has turn and the veteran to to

Yeah, Chris.

our and the to foremost, be. first every think the and is deep in that There more not troughs more that in. than business seeing and is the as steeper are we one used content participate now segments of in they are market I we're what peaks

probably I be to way And factories also they're shallower. don't to unnecessarily product inventory isn't So been that's very managing our the going that be perhaps at think are making -- look and and we've the needed. to careful probably troughs sure that going ship build at we

just we softer my we've and as cycle the So for match system. set customers can as to our a ourselves sense how try given with demand landing of is, the managed supply tightly we through

here is, would (ph) I perhaps turn, we it given sense least where to quickly. muted when PMIs demand. turn quarters couple just And think of will the my central see begins at a of So, are at,

Yeah, Chris. I’ll add -- quarters couple the relatively. bit here. a we've like, of demand quarters for XX about of grown good think unit to It's little

flat. see we're you XQ, sometimes. flat I going kind you a and investors sell-side of do a about forget call that have people to, more quarter normal think down bit of and And kind normal back kind -- I'll industrial what orders down you more of to from XQ,

And up you low XQ, usually auto, for right a consumer is more of bit. due not normal builds. in down, get if a industrial, pickup. to BXB holiday the and you mid-single us, XQ and then look at little market are that kind bit our a consumer And which much a Comms now happening and XQ down activity is digits comms markets,

That's of Now pre-COVID. was an the kind what that's shape outlook. not normal

and you well, they can CEO one as met tell very the our Chris, their And largest recently. secular I the Yeah. very, tremendous conversations from I not automotive quite so rebound that efficiencies companies, continues. is is with automation challenge of stage, was factory, the on industrial factories, improve lot of is a The spent, to demand industrial from on sentiment a so drivers. of strong. growth customers, the and CapEx sustainability where everybody's There whole pandemic in see mind.

and our period of here that mid share And demand, my with And through there products, is, connectivity I automobiles. to it's market end short-term going areas getting electric we're that rapidly. we've the So in reasons pretty automotive, high the many reasonable will a in a say, count vehicle more portfolio that for case more would of, the demand got. there recover still are sense reconciliation, but things and in to we're believe industrial supply, normalization of

So, short-term we see this as reset. relatively a

Thanks for color. guys. Thanks, the

comes from line Deutsche with next Seymore Our of Ross question Bank. the

Hi, guys.

Prashanth. the weaker about to the The you things. little when two A bit is of automotive question. the And a want then echo Just talk that quick question being a is second half for then the clarification is congrats on or side year calendar year? clarification fiscal

the couple And bigger that benefited of the that guys mainly been trend times kind over years you mentioned well. have of You've few in from but content. has as it's dependent, SAR a automotive last

the basis. anymore semi of one the side guide be a that minimally you're think Has that that on demand, on color sequential companies something aren't, in inventory, helpful? it is changed seeing others would first you're I it just is albeit down, there, to that

Yeah, Mike.

to take that? want You

Yeah. around go the normalization. comments kind of fiscal of part, fiscal first our XQ a XQ of on Ross, little what be based for outlook I gave and kind thought I'll would bit I

So you the half can pass along side. kind it second to auto that about and question parse it put I'll or half your that that, on and With is fiscal of calendar with second take from it's it both. that,

All it. I'll right. take Yeah.

was again growth XX the all in look, grown for -- was across row very the applications. So broad-based, a we've quarters and last quarter

our multiple decline underlying EV. some and should our prove strong outlook, are strong the some to the There a in about to content As still we beginning top continue SAR. think position to line softening we be see though relates China is of that growth

well. position think have we the of asked Ross, in And factors. an China going probably you one those is that EV ADI, differentiating is share for as adjustment through that about when what's different So I

we China to be still are going had thought. not it's While EVs to fast growing grow, as as expected originally

businesses back, comes have going tailwinds need market our because this as we it's high automotive so, for very to the share. we provide And

take are this we portfolio a SAR product with a very remain a with able is going our business represent battery business back, and half These in-cabin do and environment, strong GMSL, still step the connectivity confident AXB, we double-digit we be to safe Again to that about have, power. management, in of flat functional growth.

Thank you.

our we question, Liz, go Ross. Thanks, And last to please.

question the Securities. line from Stein Truist of William with This comes

quick my questions. taking for ones, squeeze you I them Thank can Two in. if

past any the either comment optimistic you're very certainly few no relatively and had, like to discussions is I'd not we've having optimistic on. been problems about I that raising in First, or essentially that that wonder there or highlighting pricing in update if foundries still you've passing lowering you regard. are

get and there suddenly have you even improving how in to a business maybe changed how to to was -- seems what think much. the discussed Thank moment happened in to get and investors understanding how can then other is from and quickly China, in because getting better explain I earlier other a recovering. with very met us just for What And this China you worse? some you've linger quarter, try the

Yeah. shutdown to pretty one as multi-quarter the Year levels, of quarters. as the to that the of watching in Thanks, see the I'm out we normal coming recovery well to to given return China activity looking had is address We Will. business going do Chinese most straightforward. so -- down New The begin were we China one China can industry, as first, pricing one. of the Vince the couple

pop-in -- channel as that available supply going for a say, level we've and We or ship that, of activity And in Year. order activity not didn't as move that sell-through made the we to we much said, kind I as got supply move Asia. less as move we the current in than did New that's can quarter, Chinese on Based out things readjust softer came now we in to quickly primarily help didn't therefore, to why much. the are of saw in

take to to I'll that, pricing Vince with the And hand-off question.

it value has Thanks, I to expect customers, our think Well, And customers. ASP And putting in more persist. core customers. value Yeah. more that cost is the increasing, the giving pricing, pass Yeah. to that we're very we're resilient. fact including incidentally that portfolio In general, of I product that our getting very, we -- our is of Prashanth. to been to our we're not inflationary headline

thing one sure think say I for our So, we about can is. franchise

example changed for industrial Moore's in products in we're conditions Our sector. fundamentally. And for many the our Law very sticky, products are where very, persist the economic era, post have the decades many,

look the which to persistent the quarters. steady industry. be to and we pass So very will inflation, years in in arena is coming be I the to pricing And I the in going the general on for expect ahead opportunities industry, across believe, in

you. Thank

on I'll I morning. Will. us way. everyone let this go thank Thanks, of your items you for joining A couple before

are systems we our one ledger for playing integration. general the our First, of Maxim (ph) this represents ERP This steps combined, final quarter.

reporting fast typically our week to ensure Given extra cycle, we've ourselves smoothly. given an everything runs

call of As August versus such, we be third-week second. our in to plan earnings the the held for

London our Bay to will your to more Area Vince Please and times these for neighborhood. being Boston, plan in the next team during commitment you our transparency The IR and be quarter. and reach notified consistent are flag with out when owners, be even uncertain Prashanth in we available the wanted more if York, for New for investors. in that we I Also,

with day. be Devices. transcript continued on available a a for and joining in Thanks again Analog And interest that, website. will your Have cognitive good us the

conference today's concludes Devices This call. Analog

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