Analog Devices (ADI) 21 Feb 242024 Q1 Earnings call transcript

Good morning, and welcome to the Analog Devices First Quarter Fiscal Year 2024 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, Josh, and good morning, everybody. first XXXX our call. joining for quarter conference fiscal Thanks ADI's call Chair, Rich With the are Puccio. CEO CFO, me on ADI's today and and Vincent Roche;

For performance, are The from by and margin, to described information also information earnings about results basis, find the rate, a required the about other and information law. to our obligation as measures results you schedules earnings anyone further We forward-looking GAAP in investor.analog.com. On which additional could most certain our and special to we're filed margin, the flow our included in tax on the special reflect differ update statements, risks Revenues SEC. periodic undertake nonoperating includes materially relating measures as of statements uncertainties which release, these are at disclosures. and to items materials and directly financial operating Actual measures today prior can the historical to only the items. When excluded these operating free periods. our of non-GAAP cash comments non-GAAP discuss excludes who missed EPS subject are it release, forward-looking release. in with except as to gross reports expenses, comparable no expectations these this our our be statements, Reconciliations will as today's from to date non-GAAP comparing and call.

Vince? quarter ADI's and that, turn to I'll a of CEO was with quarter. And Roche. Vincent it reminder, XXXX As the a first XX-week Chair, over

him welcome the era. I'd new begin, his board. and Jim I to is He for our interim our tremendous technology Jim in, recognize experience you a in also call, I'd few complex and we're edge Mollica to sectors, which CFO, good and Richard brings Thank you partnership like to But contributions extend all. morning like have to very excited serving very think for before leadership very thank we the continued much, as which but be to weeks continue on to intelligent from will only financial as Puccio, and capability valuable I ADI's to Mike, success. CFO

results the first per quarter. ADI outlook. operating midpoint Now margins our the than of XX% of earnings on $X.X for of more to $X.XX, revenue the of above all delivered and share billion,

of will sequentially, As we the previously rationalization quarter. XXXX expected situation began demand. governed at That discussed, continue subside our headwinds that be Encouragingly, the to growing second the half customers a will by quarter. middle inventory-related this our said, during and improved our bookings quarter recovery inventory that second through macro shape underlying largely timing the confidence remains is first and challenging, of

making and us operational customer future and engagement prudent balance our agility strength during even heavily downturn. as Importantly, invested We've sheet, well activity management growth manufacturing we fueling our serving are the this of that capital shareholders. dividends XXXX in R&D, to resiliency consecutive profitability industry-leading of I'm we announced yesterday, X% dividend highlight returns. of the a that practice the end, To higher capital that maintain our pleased for increase robust supports XXth year

our AI-driven connectivity. Now The focus solutions edge need by power to customers' what's their complexity continue customers our that efficient. investment to future into digging deeper compounded sensing, secure anticipating a extremely becoming and ubiquitous needs philosophy, a deliver is computing little on both our software-defined, in leveraging are we technological and world, facing pervasive

assurance. Since increased gives confidence and our in SAM around how complementing Maxim, systems grow the long-term ADI digital, to AI strategically about support markets. levels capabilities and increasing share little across more acquisition So customers' of are challenges of software, our more our further customers our of talent engineering and to a we capital our allocating value we've to our with let deliver by supply solutions now me of more our engineering tackle breadth Analog world-class XX%, expertise. population This their

shoulder a shoulder of our their with increasingly to to customers our like deepen stronger to as increasingly further share mean. of our to market ability understanding systems. And solutions, examples This what to addition, we In their innovation edge deliver I from technological co-architect complexities. our engineers work and I'd physical strengthens components now few

that transformation factory ethernet in building Last month, and and power-efficient and of monitoring driving edge-based that use their example, digital ADI's solutions investment sector, configurable I/O announced industrial platforms deterministic software offerings. connectivity and Honeywell automation across control is automation the in enable systems. For control secure, we'll management

digital we interest enables power-efficient our we've systems and to aligned customers in-cabin the electrification, additional the capture wins more a enables and deliver design of expect This configuration. to signal business high secular immersive between in due integrity advanced safety us portfolio to and highly customer end-to-end to cloud Xx sector, securely approach edge experience. automotive globally. In Our platform value, trends system and flexible the the

Link, computing their at learning and position thus For high-performance workloads. compared recently more example, seek broader magnitude Serial our auto at share manufacturer, global increased data fleets. as extend extending and require that top Multimedia brands traditional all our machine We Gigabit customers energy video of adoption X GMSL customer. In and quintupling a gain our AI to our solution, their data systems opportunity to continues to and orders across or capabilities processing, GMSL centers, across

This vertical when quarter, a helping solutions, of data is enable win XX% this to systems continues multiphase conventional we and their a to noninvasive been for home-based chronic let remote for regimens. specifically clearance delivery to on and precisely you across deep monitoring solution transition, designed enables leading-edge market this portfolio unique delivery our of congestive from and by compared losses more effectively. diseases expertise, and capabilities for digitalize design and power know ones. In high-performance power leverages our domain pleased power to that as platform, a received secured performance. processing ADI improve of recently early, heart significant enable preventative that solution signal and I'm power sensor to Healthcare, we've act reduces and treatment Our such medical vertical center forefront hyperscale customers modalities, power FDA rearchitect predictive protection has that large customer the management that to system algorithms failure. providers Last

our than chain, ADI, a is I'd advance [indiscernible]. Switching algorithms our $X manufacturing this in of in As to evolution some priority vector billion for the our customers. which future supply new more AI to the share allows now of of a resilience, progress our platform, a growth also like growing even data-driven more make us new personalized. unlocks to for this use adding to This

Over CapEx invested resiliency. our capacity to X and record we've the last years, enhance levels to of expand

that our investments of focused doubling have including operating front efficient systems goal and in internal will sustainability approximately our Now will with sight line achieving more a spend. Notably, enable time, reducing XXXX and begin emissions, to our significantly fine-pitch investments technology investments, capacity implementing capital Japan these of also deliver and in will lower more challenging XX% the greatly of of additional back-end costs. reduce to ability been with input margins at times. Complementing hybrid our resources on over more These to benefits, to will which, increase extended protect our the unique and strong swing capacity their upside demand years. in coming during also we model capacity our subsidiary. XXX-millimeter flexible organic partnership foundry helps TSMC gross backdrops secure better This around to revenue capture XX% manufacturing our and

geographic over in us and investments, multiple chains. manufacture will assurance partners the locations, enhancing our support giving supply optionality and their enable of combined our to customers Our with products our our resiliency foundry greater

closing, we're and our on eye our to near-term and future. that taking in make the future. in to the the preserve increase business on always, capital necessary So navigate one I and the that we're the confidence while investments present our have keeping steps in as accelerate challenges competitiveness one ensuring the we eye

And so like to with pass microphone to the over I'd Rich. that,

you, add while ahead outlook forward quarter, are midpoint and was above achieved year-over-year. ensuring revenue of sequentially XX% to of and business have continued quarter company slightly first me quarter to the call. joined year-over-year. on sequentially positioned and excited we the us. navigate first our Thank XX% down the well X% the to opportunities And Vince. our I'm my earnings we term ADI near XX% tremendous the welcome helping to in down challenging look conditions, represented Despite of capitalize or Industrial revenue, which let XX%

revenue, basis, expected, collectively As to represented year-over-year. Communications, XX their period, represented sequential of revenue, of experienced sequentially across connectivity and demand, consecutive functionally increased remain investments customers and X% safe leading year-over-year. decreased sluggish and while our Notably in work well which XX% wireline by relatively XX% solutions year digits demand of continue applications. up global by inventory we sequentially was Automotive, ago broad-based XX% down X% power growth. down the a levels. declined of versus AI-related XX% representing driven and wireless quarters double weakness And depressed. XX% which fared On lastly, as year-over-year end sequentially consumer continued driven X% as XX% XG revenue, represented

to the Now rest of the on P&L.

lower sequentially quarter lower the driven by disciplined discretionary down the week, spend sequentially improvement. X% utilization. OpEx revenue First quarter $XXX driven gross in lower cost by margin and and comp, was variable despite unfavorable down XX%, million, extra and mix was year-over-year structural

million, of and above our the outlook. of tax the rate EPS margin quarter slightly operating XX.X%. for result, $XX the midpoint. Nonoperating high expenses was a As guided All near at $X.XX, was XX% told, the finished end finished

of the remained due to XQ above decreased below than Channel days X inventory slightly Cash more million sequentially finished sequentially, on by and range again driven increased ended $XX leverage $X.X at while X. Now with weeks net increased revenue. equivalents of goods, target sheet. our to XXX $XXX billion, and inventory X lower dollars Inventory ratio weeks. declined to the nearly balance finishing million our to in quarter primarily

Moving items. cash flow on to

flow trailing XX months, billion the billion, CapEx $X.X cash operating respectively. and $X.X were and Over

XXXX fiscal expect to approximately be CapEx continue We $XXX to million.

anticipated U.S. any and both these reminder, gross benefits CapEx the Act. a the European Chips not figures, from As including are of

cash XX XX% last of billion the of generated revenue. $X.X Over months, free or we flow

share XXX% also than per the XX%, count to we we have returned dividend more shareholders, dividends Maxim more by reducing flow while including acquisition, time cash have most share than billion increase. and our nearly $X.X through since our free announced recently of During X% repurchases. And our same billion increasing by $XX X% share or returned period,

long we to use reminder, grow remaining to free flow return aim for XXX% count a annually share the with target dividend We reduction. XX% our used to cash over free As the flow XX% term. cash

guidance. to on moving Now

quarter margin higher end all expect than markets or minus decline Operating again, includes mix we plus expected largest to inventory. be industrial channel balance sheet expected XXX the basis with to of further to impact once be minus is is as sell-through decline points. XX%, midpoint, selling. to revenue expect we to utilization in as lower billion, inventory. the This we we continue million, the meaningfully reduce $XXX Second or reduce $X.X be plus At unfavorable sequentially and

expected be $X.XX in Our strong the maintain to inputs, term as taken is shock And profitability tax based near on ADI revenue plus as us to protect actions closing, quarterly absorbers natural or XX% the EPS embedded to well fallen its peak. our rate as profitability to significantly the to we've these in from expected even $X.XX. In has be have enabled is XX%. minus

where our the cycle. I of continue we to give back Importantly, the future, it financial Q&A. to for of strength the confidently now in our of Mike we our will will importance in are profile invest technology, regardless and growing with

to call. first the With question, [Operator have we that, our welcome Instructions] and Rich, Thanks, please.

Instructions] Stanley. Joseph comes first with from Moore [Operator Morgan question Our

year-on-year. drawdowns, significant fall down revenue seen guiding [indiscernible]. you than XXXX, now mid-XX% are we other haven't guys XXXX, that historic kind If of back where I to You had far demand go

you kind bottom downturn inventory Or severe? any the that? kind reflect we of the as excess correction to much how just Can of we've why approach inventory looks maybe it ever there of might Does sense like to the that kind So talk seen. been? worst looks have as just check

Thanks, Joe.

that events impacted the every fracture I every And segment if the was single and single was foremost, first chain every single you the supply customer, think business. caused -- like, unique.

ADI. So broadest perturbations. the And through with years those all this base different seen ever is inflection I've demand I've in been truly my XX-something

and We the what then So supply impact. that's we behavior in level saw event itself, the uniqueness shortage, think the a Then I I compounded. of is everything chain see we caused typically the think we the fracture. got And see that saw of shortage situation. we the

and to industrial half say, we've double I the that the And see that would market. in X biggest start the kind past everywhere. The we to in sense get will to the seeing I correct, is it growth ordering, You holding. And correction decline X year, is from you second get began to quarters we're of the area our the that I probably seen, that of believe, take of when beginning the -- again. second think

So lead times we're I I now it. of a into got we got are And quickly. We've quite most actually, faster very chain where than our in most. than uniform. issues, much But shape that's pretty better think back the supply situation lead the ahead times think,

And I so we think, saw than others. the downturn, quickly more

the the that So and second year. And very, for technologies years we'll demand underlying very all we've a products back bullish expect, half that in about ahead. that. see return think We in fiscal our our said, Joe, to I as indicated of I growth the remain

from comes Stacy question Bernstein with Rasgon Research. next Our

more could Rich, I like said little know if industrial I you probably give still XX% us guidance I mind? further in on down could be more double be next And you sequentially. would wondering Is have us probably is everything quarter. to you got worse. that great. color mean than assume everything you any industrial a sequentially, down segment has what in give and that was digit But else down color the would

It's that one. Mike. grab I'll

of would is in you're your guidance, to. minus down XX% say you right model can sequentially, XX% or midpoint worse industrial weakest. the guided number more I think to, plus you sure, want so the put sequentially. than say, your is probably So if I the comms to would also we that in XX%

channel, the and auto for really, -- out we inventory consumer down piece, I And both probably bit industrial more markets. but other channel laid the do are Stacy. While hope in industrial a impacting in on as as the is the the is sequentially big significantly better, well. in helps pretty driver that the so which reduction

Danely Our next Citi. question with Chris comes from

you How do follow demand as to and as hearing that pure And downturn comments is just much channel up you have question. could could you Just versus from just your trends correction you're on this the demand? distribution what think on customers? any of far inventory then

for then the on in the and supply-driven think I'll you're add I normalized. extremely also is are question will of here. this time. where happening outlined that time. start extended have the but what We're Vince Why customers our a answer Vince times our still an lead of fracture clarity it, correction, they are seeing demand times chain what extended a is, really to first as period Those seeing some supply And build long. that lot inventory lead over

up. balance to lead lead short reduce they're time sheet our Now inventory the back normal, them our cycle so match seeing their so match times, is times to

talked And that some in second more about So in call our demand. correction demand. normalizing really it the also in release, supply I'll of a chain of There's supplied and we as in quarter. press supply here areas majority well business. demand some our script than really of pockets overall, weakness a But the

Yes.

the at are indications of in the FY And I if is look halves all largely through digestion said, quarter. by as we then second all part getting Mike our digestion. second the the believe abating. about our the 'XX, half, And stronger, think, the are I first Chris, we and X in get of bookings end inventory that of cancellations headwind half

if And the we'll that's more maybe than exception at Our big I bullish a where of to least standpoint, conversations half. macro we where return quarter I with with begin customers macroeconomic at last pattern we're at look suggest dial is this are versus growth China, question the think were. margins, a that to from second the The the in positioned. we quarter,

Our with comes of next question Bank Securities. from Vivek America Arya

were on stabilizing. the earnings last Vince, call, bookings mentioned you

And I and we us things are margins should get should importantly, in are to recovery start this improving. end think markets recovery, in is curious like shape could this you're inform ADI kind how seasonal as quarter, see bookings first? some we out that, assuming assume gross the kind margins to of B that I And flattening flatten what into July be which then recovery? should So potential recovery bookings and you of if will of we which happens out saying of flatten the sales just what seem part what the showing if as see improving? I'm attach they And bookings? looks quarter, about be now and to best

improve. get will Yes. I look, normalized Vivek, flex, more Well, growth into we think, a as in everything soon as demand and pattern, back

Our utilizations improve. will

we've channel, our We the have undershipped undershipped customers.

very So goods that flex we've make we've when we will demand finished company hard We've lots supply very, got got inventory. the working in of -- sure in [indiscernible] the that and a to place. been and get

to we're in position great So a recovery. address the

high-performance and of part your in X of external traditional that up at pretty business. a factory pretty healthcare, to aerospace rest. say even across different fundamentally as everywhere, parts I'd everywhere, message the computing seeing world, But you are to, of benefits we test automation you more the And like they've so all industrial the look are much instrumentation industrial instrumentation, better the first say, got than But drivers all industrial, holding X systems sector those the ADI. is, the the if sectors On bookings quite these need or new question equipment, segments. defense much now and where improvement, about we right healthiest

the maybe most of a So our business, pattern. normalized seeing to return I think, in general, a wireless it's more say, true sectors exception are to with bookings

on the color gross you And Vivek, I'll more margin give little a outlook.

out given XX% that we've been came in plus the would at takedown reduce weaker XQ almost industrial in given we fact what million thought talking outlook large revenue, talked drop margin sense end, in now the on the million. And shape result the XQ inventory gross and X bit will little governor I So will think implies inventory that down to the to last recovery and We predict to about be a a another lower good revenue with $XXX to half revenue million right a $XX the especially further the an factory outlook, $XX is of gross high about the quarter-over-quarter. tough be the by is in to the our be further and trajectory. if as of XX%. start higher minus, industrial starts The and than or the much XX% continues don't we at best capacity. margin we're leverage bit margin we taking these call, utilization in decline levels going lower see inventory half, our But as gross second in to trends we'll to swing continue meaningfully

And in as gave outlook. outlook the X-part Vivek, asked know I'll question, you chime well third as question. for a you quarter I me

times lead Our are right? say, weeks XX to are hard it's So lower.

up really little are But don't a down up have the bit in quarter back to are in XQ, we depending the digit some kind flattish consumers about past today. look markets of holiday they're if over single third mid- you where a start bit, So sequentially into builds you our over they're high decade, XQ BXB sometimes little sequentially. seeing visibility while sometimes the cycle, from history

the Vince then of historical bookings. in Bookings that's what quarter that. kind to to that's on should quarter, and increased not how context. last said frame about quarter, it. And the before we actually third We're So guiding add but

see good we XQ and is back pickup a the half year. is improved. a approaching bookings, our parity, which both at bookings you XQ And now the just they're what's look that in of sign So interesting

Sur JPMorgan. Our next Harlan with question comes from

performing for Maybe New XX% So feels signs beginning of I in down Just China Year. the the sequentially Lunar was It fiscal the this like did total full late add of a was a the look region? in uncertainty patterns want your of also this are China of about New now well? out China of worst geography Are so stabilization XX% the demand to showing 'XX, Year views. year, the year, signs Because but also as at signs this at bit this revenues. your cancellations little about year. Are if it region? obviously, even What orders regions? of pickup get post-Lunar potential we're growing was

is said, the perspective, you big And is whole Europe, China. in and say. in been the But of take longest, from it, Year, as around demand. the something Vince Chinese weak think doing So if year. out. better as rest than honestly, geo the Asia would America, back I regions China after China last globally China a source bookings I there's question The well. if what North X, about are we was unique are as of but step a I weak, basically before this said called New weakest still has weakest like well improving

from So Year Chinese commentary of the impact really and made. kind no New we've

question next Toshiya comes Our Sachs. Hari from Goldman with

curious I'm today characterize sell-through you would how Vince, versus sell-in.

if number? I rate that couple end think in billion? sell-in environment a revenue guess, doesn't be you're quarter over ago, $X.X later X, billion, had of I ballpark the the Is is XX% quarter? the And a demand at tracking was there below tracking the the what Could is right $X.X X in current your you seeing And year that mentioned conference that above months? run where a deteriorate to months if so, next still sell-through. XX%

of the grab I'll it, sell-in and of part the that sell-through part on Toshi. first

quarters, inventory minus sell-through I over the the plus million around and would really last channel. to $XX or selling per relates call our X the X So a reduced dollars past channel quarters. it We reduction, quarter

inventory. bigger in is channel a of reduction Looking much at embedded our guidance

on channel seeing so outlook, you to probably what put the side. number $XXX our If million around want a that's or in we're

channel. a the reducing in lot we're So

on half the side. we've given sell-in Vince X should and Now it the be last the the situation actions from to we the little the a back to year, a the at over end look customer perspective, matched about customer And pass inventory better as sell-through channel quarters. of taken you I'll talk think

Yes.

very side been customer very, various the things, of carefully across we've segments. monitoring the On

their ADI on rates, and Our our customer their shipping customers shipment And we're clearly under demands. goods hand. current inventories

we're So got of in in we've that on good position -- terms a inventory feel we our hand. a now situation

Our the customers in us pattern. worst the that book-to-bill unity back And gives confidence indicated, order more to approaches beginning, the as growth to of second their books, that correction. And the half, the we seeing inventory ADI's will normalized Mike are replenish goods. as we're get a

So as good ready a for there's Mike direct said, situation, of very we're the in the distribution between terms but inventory balance the channel channel, the upsurge.

Our next question comes from Securities. William Stein with Truist

a I talked the of want it Vince, but Rich, please. into to or you wonder a you with maybe Vince, more how welcome, of direct questions capabilities managing dynamic? partner to to up vertical potentially some suggests needing of couple competing their sort And you're that about, either of more smaller contemplate capabilities number somewhat I closely pushing with you that wind them. are and customers that

Will, thanks very much.

the unfortunately, -- line You're shopped.

the a me, component potentially. I out can our been it's we've problem line build you on add verticalization, years hear journey our core to many, think okay, Will, question customers not over solutions. look, I competing more value now to many to continue that but with got our about franchise, Hopefully, X-way -- also here. your a

the has particularly engineering domain Our we so play. become single every last application-driven that that an to talked care at on brought distinguishing acute the that. I health prepared care, in decade, solution in kind will approval. ADI point that the over edge that FDA we've just has the to over where remarks it that build market of continuing this we've the solutions-oriented business about segment more decade of -- got been last we're continue, and And

add we a complete like, to has that of markets I've with, our and customers' building world complexity. asymmetry we And you like in capabilities in have software the Because that space are the and that and values. truth actually places solution deal both solutions where think there got. that versus we is value lot even line where I about is the Why? footprint build Will, to with the us what's We're hardware makes customers a customers complete space a the our place. capabilities talked expect and has is taking more core have and been between They larger where between sense. clearly white more certain is, solution capture, more ADI value the tame the and where traditional define more Analog But their attack. and happening, ADI's has before the core in if got

think so I with the about labor vibrant very we where competing draw divide, but So line we're customers, not speak. the our have to discussions we of

helps. ask a That can I If follow-up.

the a more a for used all topic familiar either Maybe because being with if do say, significant competitors you circuit ADI. changes wonder much engineer this it about fact, be about There's of using a capability are limited capabilities by made others, so to customers? anticipate where story capability. Have this AI. you driving lately. sort that I talked You creative of for too It's not advantage that or and capabilities, that Analog story bit narrative at design? Or would maybe some us in efficient design so. started or there where engineering-focused a world AI. here I productive Generative In a could

spectrum. everybody good look, our today our chains. is trying AI using We that routine our to -- more use out the around at that performance machine be to -- businesses. of I products, take starting anything AI in it's be much way the in that our automation We're -- that routine. of Yes, automated, figure And very Well, in that's business. a it AI the the can play learning high the and Technology and anything technology. tool question. can are We're in meaning We're their of believe think that over using I will end is the things products.

a any generative property we company in more. see that that there's truly in I our and we've tremendous more will the time the unless outperform matter view But We're a intelligence don't the in which realm intellectual where I yes, opportunity. system as this AI foreseeable future. So think got can and imaginations, value learning

are As from development support clearly ingredients as way, what we how products into products, putting we're chain. product our in also, tool put the process by in customer the the the and designed, AI

a part. embracing population. like, and and believe it, if engineering will we We're it is with that it the you So an copilot, our be accelerator

like cell do XG from need more Will, it coverage. some your we phone line, sounds

Our comes Timothy next with UBS. Arcuri question from

that out to as And are Can -- of those you you versus now? you're any of And period coming they will the downturn? much much a costs underutilization how those might those of how charges help talk any themselves headwind reverse taking?

I think how your gross impact mix. under So our of on utilization versus much the question is on margins

gross I peak look you XX%. about think here, margins were if our

outlook, about equal and parts, XX%. really Our mix decline is Rich it. out, I'll as about pointed call That embeds utilization,

to As year, to half back this you of the is mix going depends what do. it look

industrial We've is out, pointed so bit. enough do little think are doing help From should bottoming again our I been that also starts low to meaningfully. a utilization reduce We'll XQ. Rich in here, a inventory standpoint, it that.

of the the going X a revenue gross gross on picks industrial which should down, it I pick up tailwind those factors, how the provide see they're start to fast sector. margins. going How margins So and up, depends how don't much to it probably relates starts up fast really

question. Mike. any Okay, That's are there the guess, inventory charges? I But

So from a inventories, yes, I good say, would question.

You're right.

inventory. lot have a of We

have the But that half they a been into in go of As elevated you year the no into margins. can probably It's kind that's charge for few gross way the this The not of quarters, as our you back The anymore. of past stay run already inventory headwind a rate. in built next sheet. -- year. inventory and see there's acceleration standpoint reserve on our balance charges from

last question, our please. to go will We

Our with Fitzgerald. question C.J. Muse from Cantor last comes

guess, of all sequentially, out you about talked auto think You best you're you correction different seeing, performance can Curious but seeing completed I if auto and being of the April down whether that X well? kind the exiting as through Tier be will segments. walk from what

auto pointed lesser I an standpoint, not to From that going GMSL would the C.J., power, it's call yes, than out, inventory. but digestion the functional or in BMS, offsetting area. auto other as business, correction growth whether overall fracture the the because definitely Vince of than drivers areas because automotive markets, is, inventory a Sure. like those Yes. of AB in is the at inventory growth in everyone in it say, market it's on safe that really the supply are It's degree, auto there

You're the second our say for on areas 'XX. X side grow about I digested. in side, right that I that know. auto it do being see, OEM year, being But auto growth good complete. By the some on net-net, how full year. feel see. the We'll to don't seeing And froth But growth feel inventory XQ market the end full But strong depends best Tier in about the on but and how overhang year and grow, performing really the is. areas of we much quarter, the all we'll growth will be is good the those Will here for this do inventory. the to side it we're or continue there's

our of of the a day. call joining for joining available everyone, A website. this morning. and transcript great us, the have rest the on for Thanks be will copy Thanks,

Thank you. conference today's This concludes Analog call. Devices

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