Analog Devices (ADI) 26 Nov 242024 Q4 Earnings call transcript

Good morning, and welcome to the Analog Devices Fourth Quarter Fiscal Year 2024 Earnings Conference Call, which is being audio webcast here a telephone and over the web. [Operator Instructions]. Please be advised that today's conference is being recorded. I'd like to now introduce your host for today's call, Mr. Michael Lucarelli, Vice President of Investor Relations and FP&A. yours. is floor the Sir,

Chair, Thank you, joining With Thank for CEO morning, on Rich ADI's Puccio. and Fourth Quarter good and ADI's our are Call. call everybody. Roche; Fiscal and the CFO, you today Kevin, Vince XXXX me Conference

missed described you subject includes discuss further anyone uncertainties, our schedules which it are financial certain and reports can forward-looking and risks our as to who filed and For to we're the about find earnings release other relating to and at investor.analog.com. On with in disclosures. the release, The information parent SEC. the statements, materials

cash statements Actual rate, reflect as performance, References law. gross from When from our our materially call. a required basis, which free operating the excludes be margin, prior statements to margin, as to today and nonoperating results expenses, on operating only items. flow also tax as excluded will these items the are of this these obligation the results except could non-GAAP expectations in no We special periods. by forward-looking EPS differ comments undertake special and comparing information update historical to

about directly included note, Reconciliations measures non-GAAP to additional the EPS are measures in to references diluted non-GAAP GAAP of measures fully and most information basis. today's earnings these Please our are comparable release. a on

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

you morning very Thanks a to all. and good very much, Mike,

of operating . second all and share, third our cyclical our earnings So results revenue, midpoint continued above from reflected quarter margin outlook. the finishing quarter recovery the bottom with steady our per

recovery. billion fiscal and of The fiscal notably post-pandemic 'XX, year, headwinds macro demand 'XX we digestion $X.X with per earnings share in full $X.XX. challenging mutant inventory For most pronounced backdrop faced the revenue finished the at

in from challenges, XX% for flow operating -- our up a delivered the impressive year disciplined Despite 'XX. execution the and cash margin fiscal and business margin of XX% an model however, and external XX% free

customers' investing challenges position Importantly, the capture edge. generation to intelligent continued most difficult key in value and initiatives our at better we solve to ADI

In month's we software while of resulted extending on for our capital, AI. CodeFusion R&D, a powered with in in, digital, programming resource-rich to platform, last Those world-class which scope signal launch is our our support franchise. investments of strengthen example, software analog in environment first development innovation analog investments our and mixed call capabilities of new and Studio embedded foundation ADI's hub codevelopment the and creating for digital continue intuitive

by launched is ADI XXXX. secure R&D more analog That Security tremendous our of synergies To sophisticated intense growth us The better 'XX. also the intelligent revenue putting fiscal stack capabilities double-digit such Edge cybersecurity the billion our on innovations win on in revenue in deliver was reflected to pipeline across health customers Our Assure pipeline, enables foundation of to achieving GMSL, enhanced in capabilities and Architecture, new we which trusted a will power, goal design addition focus the our data edge, growth enable by our care momentum to products. synergies path center $X on increasingly connected firmly of tech us as during Maxim for ever our ADI areas

platforms customer needs. growth to our and expertise we and range pipeline evolve digital a engagement accelerate to conversion, greater Now technical continue customer support of to

service field We experts global engineering support also provide our battery customer base. expanded [ of to and to our world-class ]

you and our now. breadth supply cutting-edge depth chain and leadership, Our examples customers our resilience of stack, support our value technology a our integrity. And the few me and service thought strength let and share the of with

ABI technologies. This to a deterministic control our and percentage floor. cloud customers OT Ethernet growth is factories software to the automation investments power of to CapEx X.X, large with number expand for leveraging of and as continues find a Industry connect and factory solutions to In rapidly integrate sensing, sensor creating as content tremendous semiconductor IT

intelligent On test mixed Xx. signal customers, thousands our our and analog, hundreds into per are for and memory solutions per our dollars. position the where the capabilities business, of and into market robot robotic factory by test expanding power the and systems In we've floor, in positioning tester content AI-related ADI's instrumentation designed motion by the stretches established leadership content SoC foundation the are cutting-edge high-bandwidth several large our being of

content additional Now ADI mixed capabilities requirements, test and looking than will time tester. XX% in signal we more and developing to power further result digital ahead, which per we're additional reduce believe

sector, to glucose critical in continuous monitoring real-time Within won have processing customers. our care the across we signal and the surgical rapidly robotics expanding the fast-growing opportunities space, are precision health And multiple connectivity several solutions market.

unique front-end the extending experience patient by enables enable solutions Our digitally from and centers accuracy efficiency to days of increase weeks. analog better a power and life battery

segment design this growth. with during pipeline Aerospace stellar our and industrial resilient remained downturn win has Defense most

to year, to growth double-digit level due revenue expect integrated that on space proliferation to accelerate rely higher-value and our modules communication RF next budgets defense global subsystems. systems We increasing of a the and

battery automotive, are pipeline driving our advantages among growth performance management the substantial systems OEMs. Within of

combined meaningful to also recent us with confidence higher-value revenues fiscal wired addition, BMS our growth we're solution. from our these In contributions return in grid should 'XX electrical solutions storage for wins momentum systems. trends, that in with seeing These give

this proliferation sensor in power record and and to win new persist. engines, trend drove indeed watermarks pipeline, with design all combustion The we vehicles connectivity our higher of across types, EVs. and growth an AXB expanding management, our GMSL that a full content car connectivity, expect platforms increasing to This and is hybrids vehicle 'XX of content number more and -- and use safe functionally fiscal franchises high

Edge major the is to BMW. vision. OEMs, solutions launching of EXB, Bus several with our enabler Notably, we out to gate, added vehicle solution, portfolio the connectivity have or we design including by wins which of our an software-defined Ethernet And of

that positive inflection seen communications, wireline and beyond. In 'XX to in continue FY expect and market. we've a the growth in

is and solutions, systems shipping compute our Our for a and new will 'XX. controller power begin confidence on based module the wins, leaders later significant next-gen optical AI high-precision including the in high-performance which

experiencing tremendous AI-based innovative for and leading swap which data for hot extends also our control solution, capabilities demand center power new We're significantly servers. across customers

new wins market to Consumer, In driving are coming strong growth.

We seen momentum in also across ahead multiple expect this to in key and the applications optical customers. wearables. in given wins touch new at years continue audio, We've power, growth portable

biomarkers. superior power accuracy For example, to more for our ever by more platform customers differentiate lower is becoming processing critical at capturing and seeking VSM

is momentum form next-generation In factors BXB to bringing ultra-low and as audio and power markets systems, wearable our in miniaturized to leveraging disruptors opportunities I enabling combination as several technology neuroprocessing -- and expand augmentation. acoustic hearing market leaders in cancellation content addition. processing markets. innovations these seen accelerate design we've application-specific at We're noise well of in with algorithms, wearable

CapEx manufacturing. billion $X.X acquiring increase in capacity to invested to now Turning our resiliency. We've enhance since and Maxim

protect revenue challenging gross upside to shocks unique and swing helps We at model, from also expanded Japan ability better our our supply investments more secure this ]. capture their [ capacity in years. foundry margins further backdrops to XXX-millimeter partnership coming regional the flexible These technology and earlier with capacity year insulating enable This site increasing additional fine-pitch manufacturing hybrid around to in XX% during of the our times. demand us more TSMC strong a our

managed one our closing, the digestion inventory ADI So industry proud seen. how I'm in has very through of worst has of ever cycles

backdrop I'm over pass I'll While to in macro 'XX. continued it fiscal our presents the with Rich. in And challenges, confident recovery that, now

in of my digestion fiscal welcome of me start let add demand. you, operating revenue, billion, and earnings 'XX factory from to and margin Declines than a results. Thank inventory revenue 'XX offset record fiscal lower EPS reflects Vince, Revenue of by We'll and partially of call. fourth XX.X% brief quarter XX.X% which broad-based utilization gross and a mix more expenses, and an by recap operating lower $X.X Gross of our driven sluggish $X.XX. down with headwinds. margin margins were in resulted end

fourth sequential to a and increase represented year-over-year. up of results. year-over-year. for our moving quarter decline $X.XX and midpoint outlook in XX% came down XX% XX% Revenue a finishing -- revenue, quarter of our X% X% above In fourth the of billion Industrial sequentially

aerospace a return in end offset sequential AI-related slower driven to automation than growth strength weaker and a macro by backdrop. test, defense and Continued demand more in

For declining Automotive year-over-year. steadily and demand industrial. finishing application the China major expectation significantly which notably full digits, year, double throughout was our This original every from of with of improving Industrial from to X% aerospace quarterly the X% a up decreased record XXXX better except sequentially defense, the down rest and due XX% represented quarter. than outperformed revenue, XX%

connectivity GMSL functionally digestion headwinds. declined X% from franchises growth and broad-based Automotive record by leading [ double-digit offset year, our AXB as the and fiscal ] and For 'XX safe power were production inventory across a

revenue, data quarterly Communications up represented the our low which our offset down from more XX% in for double-digit was optical solutions center finishing the customers drove than more which and wireline our X% than year-over-year. in sequential XX% growth by business, offset decline sequentially -- Stronger of demand decline wireless.

XX%, decreased similar to the wireline Communications quarter, relative saw year, we wireless. outperformance our and the For over business fourth in

and wearables, premium of applications. XX% and quarterly XX% up handsets finishing Consumer share lastly, XX% driven And by sequentially revenue, represented in higher gaming year-over-year,

in portable is with double-digit year, balancing the which declines business, just X% in For decreased double-digit applications, in Prosumer growth industrial-like Consumer our more nature.

flat which tax rest expenses the utilization sequentially the finished XX.X%. for resulted told, million EPS $XXX higher the of to product up margin million quarter of outlook. The our Fourth quarter of P&L. $XX approximately OpEx XX.X%, as driven on million, midpoint mix headwinds increases, rate at the margin primarily the by rates. modestly in which was Nonoperating $X.XX, gross XX.X%. in was Now merit all $XX quarter -- above was offset an the and operating finished was sequentially,

statement. out results our tough ended quarter $XX XXX. our billion with action X- Inventory to $X.X decreased the a quarter, took to manage cash to low X.X days of few below approximately prudently in year, million and continue supply. while decisive strengthen X-week we of to target as short-term Channel finished to sheet inventory inventory the and call a of financial approximately the ratio leverage a balance Despite I'd net slightly than we third cash investments our and We flow higher like and position, end finished XX from our

$X.X $X.X than the fiscal $XXX and was free XX% million more more $XXX billion than the billion cash flow more million $X the resulting for of 'XX quarter of flow for and quarter year or for CapEx Operating for cash billion 'XX. fiscal than in was revenue.

During in and we $X.X $XXX $X.X dividends million to billion shareholders returned in year, repurchases. billion via the

that indication billion, growth year-over-year quarter when to implies past Notably, on compared trough the Revenue gradual plus fiscal moving this a 'XX, a or of guidance minus good XX-week recovery. be $X.XX expected quarter. first to Now we're first for is $XXX million. normalized the in and to

to noted sequential quarter. expect quarter. in equal roughly midpoint, expecting a settlement be basis We we on last sell-through seasonal as to are this At a decline the

to Industrial, Communications by XXX Automotive plus single points. basis are around Consumer or expected is approximately and margin down decline be digits expected minus to each Operating XX%. XX%, low with

to Our tax based expected rate to EPS $X.XX $X.XX. minus expected imports, these on to or is is XX%. be XX% plus And be

noting by year. fiscal as few conclude a I'll items we new the begin

we great building hybrid more model. mentioned, Vince resilient a manufacturing As made agile progress and

and As provide this expect U.S. of long-term investment planned and tied fiscal we spend our to 'XX's tax fiscal expect credits CapEx to -- free level to model of XXXX. cash back will of in We CapEx will European X% revenue such, moderate to receipt tailwinds we flow. both our the chipsets normalized X%

we cash commitment during to to cash our decision Maxim this return fiscal help to targeted our return have can coming XXX% That 'XX's fiscal XXX% free balance delivered and us to 'XX. free due of investors of expect million our us lower revert was flow in cash debt uncertainty, return increase sheet to macroeconomic of on said, fiscal since in due to period $XXX while extinguish Importantly, 'XX. acquisition, our flow

Mike to back Q&A. go now for I'll

Rich. Thanks,

Let's get additional this question the to participants the for limit order call Q&A session. in X on to you allow yourself morning. to We ask that

With any take questions a that you time please please. allows. follow-up have and question, We'll first If question, requeue.

our the Chris from first comes Instructions]. Citi. from show of question Danely I And [Operator line

a say, color Just within the these of versus percent hearing from Auto the China? as is And business? a strength all Auto then EV was about talk on how we're Can of from, strength. much about you how EV ICE that that, your little or start-ups big China

the of term. So in I'll the give on you bit little Auto a perspective, Chris, near

toward from the the last multiple demand improve and bookings our our call, and However, share of QX the with QX started stronger So growth, growth. in China, that production sequential drop to expected we OEMs end throughout decline EV volume had on talked we about given reflecting gains the to during bookings adjustment in of QX in content QX, continued and

other the U.S., infotainment our video globally sequential continues functionally which mainly upside and portfolio. and next-gen the audio driven we saw solutions. demand our for for but As in safe by broad wireless power, to to connectivity for weakness Secular geos, ADAS strength drive BMS BMS and returned growth,

in about areas we share inventory a facing in by volume these uptick growth reflecting region. talked saw is headwinds, growth China, strong and we that share resulting also our note in compounded and correction -- expanded helped call, BMS broad in markets. Content offset QX shallower a other broadly, still have end I'd while inventory headwinds the on in the

now our as is XX% design activity giving win us growth including U.S., will also was higher strong return which mentioned, content Vince confidence BMS total year growth in BMS to wireless in solutions in 'XX. fiscal And XXXX, that of the BMS. improved for

A Chris, Rich has little just said. more what color,

So really got a the in we've different Americas. big for if SKUs, we're game high-performance in got that And high-performance you players portfolio. portfolio. the with many, playing like, many China We've

of there. state the the that's So business

China. U.S. on then of the what's kind the -- relative comments China of And some mix

revenue China ADI the about below Our business the of X are percent They'll Enterprise, a Industrial China in in where XX% and business. Automotive our looks the Comms lot of teens make biggest like Consumers X%. China. and

CJ from Fitzgerald. the And of Muse our next so question Cantor from comes line

should outperform calendar to in a allow company-specific drivers you about You 'XX. that number talked of

So thoughts trough? your 'XX could of of today's of then kind use maybe of backdrop your I through are layer cycle a thoughts and in And the hoping was kind as 'XX? kind will how pushing you business kind what in emerge and that on from terms of

CJ. Thanks, Yes.

already we've will first down. obviously, yes, be So our quarter stated

the to positive trajectory back we growth getting So expect quarter. to a start in second

think of I be think the rank if I it recovery, led during 'XX, by market I to were Industrial. kind will

of healthy The inventories. have and We sector. that's very supply into is weeks, chain the part big customer X below channel the industrial a

You couple called already which and tests aerospace the that mentioned we've in like in green the shoots defense, AI out and with I areas script. that

overall. easier will result, food I So a see the as briskly we think given the 'XX. is compare And Industrial, recover signings our in

benefits. consumer we've portfolio have XQ normalized. we a the diversified ever think already much of than had. the our better we've XQ -- had. XQ We we're I We've in more in has consumer, And saw business ever our than results, results business. it Inventory seeing and strength

Comms think I an is that think really was declined it digestion in next by issue. over XX% I the inventory And business, XXXX.

particularly see of talked of And we we improvement, about new infrastructure. point systems. we're driven supply externalized the at So in steady demand normalization. the intelligence we're through the this the build-out worst And the as beginning to feel in AI scripts, by wireline, that these

low 'XX. point think we're a at So We've seeing wireless on in wireless side. much I the -- not during

moving it depend CapEx on think all XG I investments in carrier ahead. will So

the not sector. Automotive least, but Last

areas globally to in of the And of the I connectivity expect color, penetration we continued be platforms. and driving see essentially, said, We to that different all share we across function, about. spoke things types expect momentum

Auto shape, So see a that better pattern. tough And compare as But solid was overall, there we've and we tough X% road feel given in we'll get a in a that on ahead. a just had be to 'XX, a to back back it's well. path growth year we to XXXX, expect that get BMS moving 'XX down

answer ranking, simple long the a that's CJ. It's to So a question.

Arya next America from of our comes Securities. of Bank line Vivek And from show . I question the

of how it 'XX. sort is My fiscal shapes Industrial QX on and then question

grow for you if I'm QX, had digit. single to expected mistaken, not think industrial, I high still

only I think they again went then up Industrial QX sequentially. modestly. down And you're guiding

to be the So, question sufficient, out 'XX rest not grow Vince, just my helps may fiscal of a grow right, really is pace. it seasonal what strong for assuming industrial Because of 'XX above really seasonal? fiscal at growth woods, the

you help year? just next in happening us to understanding And growing seasonal industrial trends market? start maybe above So expect when the what's it do

that take I'll one. Vivek, So,

mentioned, the the decision by So was and as bit driven market to broad channel XQ, you inventory quarter. our lower we largely in during weakness than expected, reduce a

As in time, Industrial on At same channel impact outsized growth continued know, an test our ADAS automation. in business. instrumentation you a reducing strength and we see has the inventory did and sequential to return

you in we in declines quarters, automation. remember, significant seen If the prior X had

sequential sign. to return that positive see a very to So was growth

back, in we've 'XX. sequentially industrial for now what trough we our step X Taking of was a said quarters QX grown of

recovery in us. feel continues what the we XXXX, months. to we we're signals give part macros I for now if still a And have that important pretty the the be, of see one a and for demand to unfolding look undershipping of bit So But good for been us do. the is to wait better XX

to normalize or XX%, just you confidence our we QX get will slope historical in if the indicate like we Obviously, in which And how something the recovery of that it start coming backdrop. patterns, remainder in again is undershipped for would 'XX. we've down, the market that a by macro patterns even out of bit seasonal industrial will the be see growth covered

our from Moore line Morgan of from And Joe question comes Stanley. I show the next

from Morgan of is Joe Moore. Stanley Shane This behalf on

have customer of Just GMSL portfolio our discussions the orders and for other they And such for of progressed half sort the on power? areas your functional safe automotive how business? has AXB, business, as how and the pricing growth of tracked then automotive

guess, pricing pieces. about talk our into that I break I'll I'll first. So X

continue we've that performance talked continue So command customers' from to to largely the the where our to about high cycle. ForEx ASPs the with expected it's previously, industry as so that focus on pricing continued has far average, been customers, over value stability and We price we right? perspective grow to versus end exhibit continuing a and the

across in moving more we customers, Tier to their the actually volume is about talked essentially come our we've as decade sometimes throughout a although that at to design. Particularly And of price stages time, from a of large design X look tend becoming partnering on over a and through. period pretty contracting some before, set at the more Tier average, OEMs there early is Xs with stay long we're fixed important, with discounts a

look our price. do And small increases trade off in our products. older to incremental on decreases we So vintage we with discounts volume mitigate then those for

the across that's inflationary other our are on stability in we environments, pricing stability helping . The on thing is business side. the continued clearly experiencing pricing broadly which costs supports

grew And your a down power Automotive it the revenue about outlined we over business, call halves. GMSL, about those right. AXB, pieces make comment our bunch a to X functional safe BMS. They Auto, and break growth those you're little kind areas. of XX%. in of the We Vince 'XX of in One, half secondary up

other really 'XX, The a of piece call in And in down XX% and a said across the XX% those a And from forward we think product the down all growth of safe up production, of growth was couple times it'd we in return part portfolio. see will that fast 'XX. be the is functional are as more more AXB, come we well. portfolio where of the BMS same, of other the to really all goes OEMs, about you business, customers standard that lot GMSL

from show from of comes I Tore line the And Stifel. question next our Svanberg

question, bigger embark sort especially as of we a picture on Yes. new Vince, cycle. this I had

to Devices, see to as here single edge peers? So of do as the some Analog in software navigate see just I'm I to what a analog And you relation I especially are your other mixed website, just products. wondering, move AI as for continues differentiation your some

that Well, many ADI mixed application we've Industrial, I And markets, is sense view had technologies. really, decades our DST new the Tore. tool for the base cetera. chain world to last Thanks, analog moving capability, particularly power core cetera, we've a But think, Yes. all core in not stack to now, from et lot decade, of of we've with over of taking up across capability. begun a algorithmic signal the vibrant software Automotive, the more begun et the . Communications, a franchise

copilot, franchise. I would of speak, -- the to use, with as core Analog algorithmic we So to say, with kind a so more the technology

cutting-edge So everything software signal essentially analog that in mixed power do the we supports we the strength in and solutions. have

our sophistication them. more ADI to for present important our to a to enjoyable what and customers and our way bring of in makes that we us increasingly solutions it's our the solutions, to And use for easier them complexity

So enables call ADI's X is, debuggers source be we solutions. over to of story. digital environment their and what And is to to development analog that system software is includes what open forth. essentially, CodeFusion And that announced our Studio. One couple our the and that on so development new last to get we months, software so end parts tools, kits, an customers technologies embed into access software able

And second everybody. the without piece saying cybersecurity is is, it for mind of top goes

So that ADI spectrum. to a call of what the creation architecture trust right we across hardware security into understands data from the route essentially, -- movement new the released cloud, the the Assure to of provide a and it movement so we've is, what us speak, it And that enables and platform. it's

the That's we're a within say making it And I'd system taking more the on than our company, holistic around think. done, and our I drive customers for but to are in innovation solutions. of access we've using view. our we the very a software So easier it products nutshell, products, spending to our innovation software

And from I Rasgon question Bernstein. the comes line from next show our of Stacy

seem of into does I you about margins on revenue get revenue think What next What ask the off bottom . think declines? thoughts in like range? is plus back is are you the there? the them QX for gross as QX as to into gross that Like wanted trajectory gross And do do do think your XX% margins. that of we taking it it how year? off the about margins grows

Stacy, I'll one. take that

lower to was due QX we than margin mix. gross had So gross expected --

because being had while Industrial So much we that see. downward weaker, we didn't which a slight and sequential with is pressure some stronger, about Auto created increase, talked Consumer so

normal we gross given QX, factory slower as seasonally lower the margin around holidays of shutdowns the expected For sort well -- as slightly lower revenue.

think sort revenue. XX%, mix and below QX going see the mix we to in be while -- and to points this optimal as longer remains of now, utilization about low decreasing we when grow Industrial Right is coming is our we of by well pretty sort If the continue off and will no driven low of back utilization, levels.

If you want to $X.X billion revenue the think about in revenue to perspective seeing view, it from from plus a a start longer-term likely need we'd XX%.

sort as perspective, obviously, expect we've revenue year. work macros see. would XXXX will do, margin growth seasonality, the we determine mentioned, talked back margin through get then of back And how we as out as the the a half how much we revenue From we the much about sequential half and incremental coming of to QX gross we to recover of we growth improvement as to see expect

Arcuri show question from Timothy I next comes UBS. And our line the from of

you my in question. Rich, QX I'm It part first like fiscal you what So X% normal to be to that of about wondering mentioned just X%? up. seems that's the to be fiscal up QX. consider it's seasonal is going

strip you And out book-to-bill much pretty Autos, if then like autos is, normal? Is if you out of trending part the second is strip versus sort of wonder as it you would sort how think? I

thought maybe X X book-to-build at top questions back to I the to was question. in the I the were few loss myself. questions I'll #X. be first the on to question

how it So goes some -- that's time. what

as seasonally up slightly, Communication It's flat, But up little keep right, What see been for Industrial and strength. you're some is in we Auto is bit. in mid-single seasonal seasonality. a a Consumer while down digits XQ? mean on maybe Usually, XQ. while up was much, you

XQ So wide overall, about you're digits That's mid-single trends, up total level. how about in that's on band a from a company seasonal typically there's perspective. we that. low seasonal Again, to the think

Yes.

side. bookings the On

by seasonally X, So in returned after and decline below a driven industrial point, up the as which lower in we seasonal we'd auto was slightly pretty QX and Americas, bookings to book-to-bill is talked auto, this were growth, decline the in largely rebound about that at growth everywhere, overall total in Regionally, continued outlook. Consumer. our bookings say the normal excluding reflecting reflects XQ in

show line our next the of Seymore Deutsche from And Ross comes Bank. I question from

the industrial of mentioned a found was question kind bit the cycle from news it long, in worst a side. for perspective a bottom, the it you cycle, especially an like longer-term of time. And on you the that is inventory good you. Vince, to sounds downturn long

should the I and get puts guess was your big from I my that is, target Or attainable? that time? that 'XX, takes a that? peak, And I realistic guess, we so, overinflated? What the is picture fiscal to question, are question to in forward Because prior look guess that to? a was if at what

double than customers, R&D of say big pipeline position I grew with been. coming year-over-year it our digits pipeline. in is better opportunity would ADI's believe, it's our areas the And we're ever small, our sector, better the is portfolio than foremost, think right and been. 'XX, I in Well, ever first out Thanks, I Ross. investing, and Yes. it's connection in

the flush almost is very their been sheets. purest We've say, to I customers company view also very, very, well inventories inventories So think taking positioned. to off I flush balance a enable how would we our

meeting is growing that 'XX. double So To digits. of believe business we of is capable the got we've what will well get demand supply that capable good we 'XX of a chain during to believe my our kind the levels, back sense is be

the rest here. the So through of decade

position the demand got, see, we that we've Given the the opportunity pipeline.

down future prospects on during So 'XX. payment see a I that we -- will and good think

from Stein line And William the comes our I show of next from question Securities. Truist

if center are call people bit. There Vince, but quite charismatic into some management I'm market. one you traction I it? suspect any opportunities can as had XX-volt significant a maybe a had you the acquired, on something in as remarks, design effort there. power as see all a medium-term very of little some Linear prepared [indiscernible]. bit And can that what I hoping to volatility comment There's that least think you in in you opportunity at this the there mentioned win design wonder win been know you companies data dig And of I end the Maxim well. I comment there?

Yes. Thanks, Will.

ADI off, business perspective, first have story. you X just the data power elements put So to really center we if in in our entire

I the solutions of infrastructure. power go think computing that and the on the is server chips the one rest

that units, new will supervisory, time. so and ASP, got business piece cut of We've second control coming and so on that things and in traction to a long products market some We've forth. terms had continue boost the forth. share The good is like on of so swapping, so to that for long,

good terabits. gaining control right also optical with We're up solutions X.X our traction to

kind that's we that and have. landscape the of So products technologies of

you're these going data ecosystem got win in play game. you've -- to business, to an this If center anything

companies, And for with in going companies themselves. solutions center the So space. play we We're processor we again, our we're data playing energy big the we're carefully. very a difference picking end make the can places with very, the where highest

attaching and energy of we're kind center. the data solutions grid between at the way, more the By even the

right at with an just part on from that merely we're energy the to intersection we chip. So the view this of the solution, looking grid power is and

question comes last our show Cowen. Buchalter of the from Joshua from TD line I And

about utilization ask to want I rates.

that impact takes your Should basically directionally think think matching about linearly semis XXXX? utilization It Or into we we I trending rates think think how revenue? thinking about might and on in any this you're we higher other only about ramping should we like is mind margins? and be broad-based sounds the with as quarter. puts should fiscal the about in sell-in How keep you sell-through? just out company that called that

I guess we've manufacturing. I from would talked about our with So utilization agile perspective, a start --

our utilization internal the to bring our reasons One levels we've been of capacity able to up back swing is ability into fabs.

So as QX. downturn we rate, I that we're continue to the during to our but in still near anywhere think, not swing normalized mentioned, I has at off us grow talked ability allowed trough to the utilization about

I expect quarters that way seen up And say, So year in to fiscal the utilization. we modest we continue. work picks our increases have would X utilization 'XX, to I sequential increase through as modest, as sequential revenue of

us available Josh, for call, the for website. Thanksgiving. everyone, great right. again have will Thanks morning. A All of Thank the and copy a transcript this our joining you, and on joining be thanks,

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

may disconnect. You now