Maxim Integrated Products (MXIM) 26 Jul 182018 Q4 Earnings call transcript

Good day, ladies and gentlemen, and welcome to the Maxim Integrated Fourth Quarter of Fiscal 2018 Conference Call. I would now like to introduce your host for today's program, Kathy Ta, Vice President, Investor Relations. Please go ahead, Kathy.

Thank you, Latiff. Welcome, everyone, to Maxim Integrated's fiscal fourth quarter 2018 earnings conference call.

call Financial Chief Officer the Doluca; Officer, on Chief and Bruce me today Executive are Tunç Joining Kiddoo. website. our I we would Investor to have that Relations external posted a like supplemental financial to highlight presentation our The information in release presentation accompanies call. on conference earnings disclosures this the and press financial this in

warnings the that making in call Litigation like I'd Reform be statements. these must our light in considered cautioned call and cautionary in made. that all some you differ involve uncertainty, be are statements appear filings. Investors statements today's with may that During will of SEC In and conjunction Act, to from events forward-looking we the forward-looking Securities this that remind the materially Private statements future risks

please Commission to and our refer posted on Securities company's filings are information, Exchange website. the For which additional

turn Now over call I'll Tunç. to the

all afternoon interest appreciate and Kathy. Integrated. to you you, Maxim We in our Thank today. joining your for participants, us Good thank

We are pleased with our June quarter results.

Automotive is in franchise management and and power producing profitable Industrial Our growth. sustainable

Our shareholders. cash today, to in value XX% delivering long-term to our our us growing announce flow dividend free a enables

Let year, me solid driven like grew accounting. year included remind to DigiKey the next Automotive, of Compared with to by revenue Center, and investors sell-in Industrial Data strongly June profitability. same quarter I quarter's quarter last to continued results. the turn would that last to this the transition

market I factor. During will commentary, revenue this my exclude

Automotive June quarter our the First, last In business up I XX% will on comment the year. quarter, was from same Automotive.

driver in products vehicles, management Automotive for for content. power infotainment continued and battery We systems see strong systems, electric demand to assistance

in power a Levels, also and key Safety battery Automotive competitive as known in products. Integrity ASIL, expertise management is our advantage Our

system quarter, applications, comprises performance. Power specific address opportunities announced electrical industry assistance lane power several that such driver ASIL power Maxim's these departure cameras. the in adaptive new and last occur content management of management management applications. In malfunction. as cars potential collision mentioned half we requirements lane the address when navigation, assistance management cruise hazards control, Maxim's for over of products driver lead avoidance, vision sensoring, to levels battery the I Automotive in dollar As systems products and in warning, can safety quarter,

the expect flat in year. up line Automotive we the September last to Turning quarter quarter, be in seasonality sequentially, and teens high to with the same from

from in management battery strength systems, expect We assistance. infotainment, and content growth driver

quarter, baseline. accounting same year me from Let turn market. Industrial year's to XX% last next In June in strongly last quarter the sell-in for normalizing the up Industrial the was after

particularly as Asia healthy channel small grew business we in June XXXX the and customer is global in growth strong partner This XX% distribution growth our quarter, medium by in products. and led strong overall In medical grow distribution the to was new content, we In broad partners. distribution resales added resales In customers. quarter. reach, through by to continue same a quarter, resales Our our last extend business, Industrial distribution the a factory year. the market market, period from double-digit our we in broad from automation June

automation, customers factory edge intelligence are factory In network. the enabling Maxim that at and of the

nascent more in are controllers, systems saturates. control the movement and of X.X opportunity around of world, the days market robots. factories a and has has content deployment We Maxim in in the in Industry few this before early sensors decades a the

authentication products. small growth base with grow see content revenue and our by modern complex, a the as sensors in controllers content to grow Maxim's ultrasound the opportunity engineering and can of XX% and that we content double, We year-over-year well. sensor from and opportunities controllers Industry can more become X.X requirements As factory in grows architecture. implementation continue medical, In estimate a double-digit

are consumables medical genuine that ensure products authentication with equipment. Our used clinical

over business with coming mid-teens this Industrial again continued last period is September reach customers the be and the in through to seasonality sequentially, In expect line business same performance with in we and growth the be distribution the up medium quarters. for expect down quarter, small to and partners. year. strategy expected factory This compared our to to automation led products by We

and discuss Data quarter, Data for September Let Center. same XXXG June In Center Center period to the me and Data the quarter, up Comms next revenue In with from Data in optical Comms was strong flat the anticipate products Communications up sequentially, be we year. and last the and growth strongly sequentially Center.

is driven year-over-year centers. rack-to-rack deployments be to connectivity for products Our speed within expected growth optical data high by of XXXG

to sequentially modestly was wearables, turn same June from our quarter quarter tablets, ago. me in period gaming, and consumer Diversification the year. down as let set broad was Consumer. year in enabled up products growth from and the of a strongly last same the Consumer Finally, expected, a

gauge management battery small, products devices. accuracy continue USB with gaming industry-leading we that strategy provide In applications, on and the We to market. in execute business smart range for of broad including medium handheld portable the quarter, Type-C market a systems, customers fuel devices Consumer announced a home in

To markets quarter, expect and And are world-class same year our through expected current in last the environment. be low and Two, spending Looking quarter to have Smartphones diversification are in business successful capital gaming. and in the Industrial. controls. four, high-quality, in One, have conditions to September from Three, forward structure intensity exert Automotive tight manufacturing margins. Consumer built growing flat be to good, gross continue diversified manufacturing. flexible flat we as we to summarize, we tablets sequentially and strongly ensures any sequentially. be we such to we're Maxim consistent up

to driving revenue, all the this continued on certainly now priorities stability, grow cash profitability that, flows. with With financial you, delivering call are Bruce. predictable I'll we and to Maxim are and All maximize three. over is strong turn of

QX Tunç. for X% a up transition was for same Thanks, accounting million, up ago XXXX. QX adjusting or X% the Revenue sell-in year quarter from $XXX after the in

and X% Computing. QX major XX% Consumer, Automotive, in markets by Data mix XX% XX% and was Industrial, from revenue Center, approximately Our Comm XX%

Our over Industrial comprised of in the XX% quarter. Automotive our revenue businesses and

XX Let We our quarter. ended XX the to XX XX% range in comprised QX the inventory turn target within of distribution to days. June the me channel. days channel, with of in now of distribution revenue Distribution Maxim's

Our been this times to still are have range over delivery lead in years. for six and weeks five seven

We continue closely industry. manage our to the uncertainties our and performance given supply the chain in distributors'

million. excluding Turning to continued quarter, by cost Operating items, onetime XX%, down excluding special the was excluding were a is few same from P&L, controls. from Maxim's points ago. the special driven expenses, share, up the quarter quarter a income, per items, increase QX GAAP prior million, XX.X% was same and prior GAAP items, earnings quarter revenue GAAP year at items, ago. XX% $X.XX, up tailwinds XXX items. special was of reflecting year the tax the Operating excluding from gross with basis special XX%. and excluding margin, items, prior $XXX a margin QX quarter up the rate, ongoing $XXX from the from slightly special up operating was

fiscal the year. over full year year grew XXXX, XX% EPS For

from quarter. or from million billion. Turning the prior total $XX to QX. the flow year. up Overall, revenue, to million same sheet at tax XX% in understanding short-term Trailing X% were $XXX XX% XXX, of XX cash were a days the which decreased million of related quarter. excludes Free over to cash $XXX onetime XX-month IRS. the expenditures balance up $XX last quarter and Capital ended and cash quarter in investments inventory million the the dollars Inventory days is up QX $X.XX was equivalents cash, payment free fourth preliminary flow. by a flow cash with

closing stock Our free cash yesterday's price. at flow X.X% yield is

Our free share way share. cash current $X.XX, was per and of above of our $X.XX target share, on our $X our original flow target per per well to

million $X.XX approximately repurchases X.X $XXX For we shares. totaled in share quarter million totaled back share. the as $XXX per capital or million QX return, Dividends in bought

approved price, is has be As which stock the Tunç closing dividend the XXXX. over increase our yield in dividend increase the just in dividend, X%. paid and mentioned, will a yesterday's on XX% our Based QX in board

free plus flow. of of Our increase cash our in reflect the dividend, capital commitment XXX% repurchases, return of share

to gross margin, onetime to our due the continued items, at QX despite $XX.X items in the guidance, $XXX forecasted Automotive with expected tight QX the to QX approximately the XXXs, QX in is operating controls. QX our growth Industrial. special and of guidance Moving and midpoint expected quarter this backlog at we XX% up revenue by of mid beginning quarter. increase last year, be be due in excluding to to slightly forecast in was September QX special same on backlog Based cost million. merit to is impact are compared annual XX.X%, $XXX expected the of revenue turns, to million items, to double-digit prior expenses, excluding flat on our the million. down beginning $XXX driven

to special down with the QX be items, tax to preliminary X% and QX, for reform rate expected Our to the excluding XX%, IRS. from tax is understanding due

For special GAAP share, of earnings $X.XX. expect QX, a per range we to items, $X.XX excluding

we X% Industrial. maintenance of fab. our Automotive required by For revenue significant in to of to quarter we internal and to targeted summary, expect as In X% at compared growth expect XXXX, last the in growth capacity we of year capital to our range QX high expenditures end FY only and same perform be revenue the add led remaining

With of earnings and are turn I'll that, which high delivering the growth, back Our to hallmark shareholders. strong model a flow is over of financial Kathy. quality to companies XXX% cash we call returning free

used Thanks, from open get will we Q&A call have caller continue and We'd queue. for the take the one each process people previously. the so in prepared question questions. Bruce. now our we more That We'll same can concludes to to we remarks, that like

more we hop than please could please our into back have Latiff, first the have you question? If question, queue. one

ma'am. Yes,

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

is open. line Your

and flow expansion XX%. the job of margin move strong gross end job quarterly your of the the target and free great afternoon, on on cash execution generation. upper and the towards Good Great

expansion? quarter was basis some guys those I profile, what investor I margin initiatives focused just products articulated you into you near-term think And that it of June that namely more of our September XXX internal cost and and a articulate the quarter sustainability margins, both the looks improving or the and which maybe expansion shows can your Is were initiatives the Oregon May, guys guidance by remember moving gross like some your the part longer of and if margin points in other near-term back beat lower has to at fab on drove the fab. you utilizations at margins. term. conference drive outlook of midpoint, that you

Thanks hi, question. the Harlan. for Yeah,

increased talk remaining our Your memory the is good. about When of one Oregon. fab we the them in tailwinds, of utilization did was up

and flexible move of on around ability capacity our We about boundary cost to kind wafers optimize also that. talked to

was – Depreciation of $XX also CapEx. course, to growth will towards customer rates Of million. million then our quarter And depreciation continue in of growth was like in our kind the the the in sort finally, CapEx our about pricing and million, the $XX $XX improving in of change mix And the down come and SMB environment. we business. talked

QX, improvement the those look It of was XX% we tailwinds, distri our that we at to margin when revenue, know probably high business. So was in pronounced right? and So that's of a business. this most continues grow, over

Industrial XX% my a but here, of Industrial. to since for been check time I revenue. I addition, In it, high-water that's was mark think close didn't has

I so is also high-quality margin. going businesses So of to that gross strategy for and SME again – adding going for think that

all quarter you're of every So going not forward, have those tailwinds I help. to going think,

I think, in was and it into SMB Industrial Automotive. and push the the case, this

some, think I see onetime list. whole to few in items continue us to little that a will us over say gross grow I help including time, continue a that tailwinds margin were those there that bit QX. we'll helped our

down. so guided it so bps but do QX, the came bit. guide that's XX midpoint in of a only quarter, will to out than little why a of We'll and better September kind be down XX.X%. that, kind And we about We of little our probably guidance the bit increments,

the really won't drive it said big But overall, We in down a XX% be just nice some of as the range. chunk, those to think incremental XX% going of tailwinds just onetime of upper continued to be happen margin, we've just gross I and end over expecting years movement items. bit up to of some to that are little because always it's to multiple

the for Great. Thanks insights.

Yes.

Thanks, Harlan.

you. Thank

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

please. question, Your

question. a guys. Hey, Thanks letting ask me for

driving your the that just I more what areas, that You the you guys – are doing great but And have and you be specifics think on mentioned couple anyone overall? sides. Automotive volatile go given a anymore. handset But should your Industrial a a guidance bit is is look does. stronger Consumer product to how upside? customer business would of don't on I the can know surprise primary handset to than going your side, it's what's But term, longer Tunç, I you into expected. important as little a then strategy that Consumer forward

Sure.

gaming a to And These we've smartphones in wearables, – our we executing lot they're happened to ones strategy. find really as had a been back, to find to new addition where like of we that had, of product new where on applications of can we systems, in this business, result, areas products and broaden really what's go. hearables. products could So the decided years basically, to we couple had that sell our addition they're And parts a we've are customers outside smartphones.

also I think the lot in those we past. about talked a

of paying dividends headwind – are despite ramp products And the you because all well we to did other customer, of we're we've those applications as our pretty able basically in non-smartphone major for space. year-over-year the that early now. saw, So made have strong from

will to look the long-term, when command We're do applications differentiation is we to can type you questions a the the of for margins we much continue in we one in Consumer your where the have that invest But long-term, growth we're can space. of in what And expect in growth. really on those for sustainable So counting not we of can. applications, found those. we and going

going mostly the and coming mentioned, growth Consumer. be as still you the third, data Automotive cloud is growth Center, to modest from Data future Industrial, think I and center, So with being in very

you. Thank

Ross. Thanks,

Thank you.

Montreal. Our next question of BMO comes from Ambrish Srivastava of

open. line Your is

indicators, year conditions. just Pretty could execution, you you of way had if your to ago. on I overall you know, had business double times help seeing are a solid provide some mentioned last a the you And understand versus us I gone question the had with and what us quarter just you of you Thank – some But much. perspective channel Bruce, on ordering. lead cyclical Hi. address And addressed the about concern out maybe guys. very a inventory. –

great. those Thank on the anything So lines on be cyclicals you. would

understand that orders. conditions basically good, customers So the – first ordering that at in that orders I as extra say. on so I multiple and thought customers last our in the said We come you, think of would I'll things call concerned ability some placing repeat We triggers we those. meet at think thing remarks, and up, well, question do explained this we so look that the usually prepared business I the my are look patterns this. those and let's that of to That's getting our to

lead case, two has has aware of Number six we're components. to a lot times, – lead in case and not seven-week has which Maxim's deliver in range been five order other that not changed years. and their So orders from the five in shortages But our Maxim's for there's of us, order one. for really time ability customer our That's number to they appreciably. us is to respond this changed at to

So them see company. order to way the any we don't for from reason the change they

look indicator. orders, look We also indicators. is of an that's another We at push-outs look at We cancellations at cancellations, indicator. other order

all see normal, to the we're good business the these, business at be look So are growing we the we're and for conditions happy and we're company. to when the seeing that broad-based things fact

this none made of also comments last have So changed quarter. that those we quarter, those

the So it looks same way.

much. Thank very you

welcome. You're

Ambrish. you, Thank

Thank you.

of of Morgan Our from line comes Hettenbach Stanley. next Craig question the

is open. Your line

I growth any for speak bit the the where if just question. could Linden Thank This in Sarah a on ask terms the on Hi. wanted front of updates the you're to EVs seeing and you to for technology Craig. is just BMS Thanks for geographies you. BMS in and trajectory products.

Sure.

happy We – counting, actually and lot we and product BMS to continuing XX the of doing wins, XX at to wins has design been we're We've get really wins. design got that design line models. well. getting have OEMs of see a we're over a So, for now lot us

or think last in said call I before call XX the we the that.

wins. regions the models recent China of been shipping more well, but where region. the now both in every lot have accounts, up design business have in A as in is and we're in We our the we wins And showing have other really to Europe U.S. geographic

quality good look lumpy, two the faster given we've real we hear So, the the that year-over-year. is of We but is it's doubled healthy. all air market this which year-over-year issues China growing business times pretty on be can do about than almost China. EV is broad-based. at in demand numbers We The the expect and basis; least rest automotive, at our a opportunity

these reason talked are prepared So, same spec a which like remarks, And very like looks for safety. we're is about talked single it build our customers winning system we my that that about in part. whole have I conditions a the safety D, good. ASIL is in the thing don't specification they They really in to

Our its own, in. part does like they our products that. a they on And it design as result,

Thank Great. in forward? at your you. dividends like balance looking about of then the increase And moving the how you past between and third buybacks are dividend thinking That's just kind year, helpful.

Yeah, so this is I'll Bruce. that. take

think we return about capital when we policy, overall, XXX%. return think, I So, our of about

starts we that to flow the is is no that When that cycle, flow free we cash there business, make And the really being safe. to of generally about that between with dividend global at we target will the two, be XXX% it and what a on and the about return shareholders. we ratio. want commitment happens dividend, our cash sure ratio of payout think some dividend, that on free to type Our to kind XX% split if of matter always payout idea with try the to look

what confidence, business only I company well is is type doing our gives think the not very is of environment. and structured good news is, but in to do the any us well, very

think when about strategy, think, these XXXX, in-house. last Industrial. XX%, so of And high-quality now manufacturing XX% like I the obviously, kind we're we've back in were in where our in-house, recession, XX% we markets, growing we're shifted only Automotive, we diversified that, Since

is better manage have we tightly. CapEx Obviously, X%. a a within range to to narrow our much So, cost we very spending of variable structure. X% continue

of cash flows. flows strong so, drives consistent cash and And that these very very all

so, and is And increasing because would of is, we it at an that, got say that management timeframe. did because dividend. do I normally, of access in tax board thing of and We to international cash. the confident increase all the January, the do was because reform, other in our this we

further of can increased at built our we model the the – that of now of XX%. time, availability based and and gave dividend kind that the So, XX%, another cash. we increasing the we that environment, XXX% be any business, of in sort us successful the then we're strength of Again, on so think

And kind really have of how for – we overall capital. the return that thinking our so, dividend factors of those are the and of think

it. you. Got Thank

Thanks, Sarah. you, Sarah. Thank

you. Thank

of question next Sachs. Our Toshiya comes Goldman from Hari

Your question, please.

congrats Thanks strong so much, the Yeah, great. on results. and

two-thirds your I Automotive, business. think within checked last business infotainment Your in, I of was it time about

Automotive a continues grow Your very to business clip. nice at

slower infotainment rate. a think growing tied at I much your are peers to

overall in of business growth there? curious, a Or driving more driving your like infotainment the driving Is Automotive? infotainment the outperformance there things it that's specific are things the just outside BMS upside? So function of to what's

are Yeah, numbers about so your right.

Automotive that better. a – products so think but now, faster, you I I I understandable. I'm else for hypergrowth, and in I power – explanation. from other companies infotainment. two-thirds products It the good. and to reporting in not I little you're I'm which saying for double and think, are comes we systems is two – those functions obviously, And less faster Actually, a sure a roughly was mean, continues don't that base, And other business the in low one aware growing some I reason that's in our if is everybody revenue think the have they're growing what these power, smaller other our might needs means infotainment is can of infotainment what we're much infotainment. products more that, not thing speculate about it grow are that than important. are ASIL and of the are capabilities, And don't mentioned, makeup in that's So BMS ADAS, our of mostly these bit better our be really The than from reporting digits. or infotainment, in I other that

data those but exact kind So that, really that estimation. don't support the guesses. are be my of to I speculative would have

you. Thank

Toshiya. Thanks,

you. Thank

Our next Barclays. question comes from Blayne Curtis of

Your open. line is

and Hey, thanks question, the for taking my echo I'll congrats.

Comm then XXXG definitely one I in the to kind bucket. strong been for XXXG I'm on guy. outlook into for been rate. hyperscale ask any on offsets fiscal XXXG Bruce, flat just, the or just at driver of guide. Is rate? lower last commentary Comm? for year to want for Is there the of understand, that quarter, And want sequentially quarters, tax There's the you the some curious has this a the about Just being just quickly least year. the half several big calendar your back

XXXG. the answer quickly I'll so Yeah,

So, we're in doing XXXG. well

the our business. so win customers, most involved don't see growth, right center a maybe products, is design of XXXG Center driver year-over-year basis, from of will comment of see years, side for either three in said when visibilities I was likely business. coming I that But I on – we is think XXXG but XXXX it And I we've couple fiscal be one. working which XXXG your span from multiple in think most wins now in the years, products. Obviously, strength calls, got compared we're that the intra-data know or next we've to cloud that you we're the continue earlier far. As the that XXXX. mostly next-generation laser in And growth think in to year From Data

– a X% the of view, Yeah, rate a – use the we so to rules number final X% we They're rules. – guided good also to not yet, for the we and year. result QX, tax Blayne, are this aren't all we're such the to but work that. and the to the fiscal say But Obviously, all point understand XX% something it's from continue for a study XXXX, full did that's to continue that and then, tax XX% as and to of opportunities to reform, work number. that what understanding with to continue number able on to minimize we X% comfortable from manage to FY business we're obviously on in order for

Thanks, guys.

Yes.

Thanks, Blayne.

question next from Suisse. Pitzer John comes Credit Our of

the Your and Clearly, line afternoon, about Industrial. LLC are bit William Suisse there. is I open. the John talk want Yeah, (USA) Tunç, on you - well guys Credit to results. good guys. doing congratulations a solid Pitzer Securities consistent little

in I guiding first it's growth still XX% you're of is the September. kind been think this strong the for time of in quarter, the and revenue June

a you automation get bit look, was – to bit been Kathy Industrial of are of think intelligence back kind and here? on has making out a of you're automation all Industrial, more Is the little kind these, kind if that's How is for while factory Or seeing kind automation of points. up to I sub-bucket parts curious of Japanese us of, factory the more about something trying if supply nontraditional chains. There especially I'm growth offset? help for there enough in mixed on content business. that some do companies, it a of have the little sort more just that you You of from guys some educate we're factory weaknesses? data other

we and secular a mean growth really, What functions extent, our I factory, of content our do sensors there customers, from by What analog factory is and, is controllers that the that talking vantage a I increasing and there's point in in automation. to like robotics. first basic in all, in some from Well, to believe mean, that?

gave presentation factories most the see of to precision and – for was we world. we this the As in intelligence ago. of edge the needed is moves a factory wherever upgrades, the China, months few their especially around manufacturing a of And lot

with in would a lot last So management designed, better we for doing IO-Links, five, I a new are we of lot high products, seeing we power main have which say, that, the growth generations a for that six success parts we're lot this of isolation of freshened-up that years of all products product And didn't have portfolio, before. that voltage, us. as and the seeing driver as of we're a of result

improving the the I that a for Maxim. be long But said showed So we something there's productivities parts at can our to around in going world. that factory's to mentioned presentation, is, it's you what be of is know for of going data honest And say time. decades, I especially other China and be offsetting. not aware and with it I I'll you. that that we're think of don't trend all is this

mix-driven So - quick And one. could if these starting it a prepared actually we've comments? in X.X. for (USA) Pitzer made got made bit a the William to is If comment ASPs are extremely improvement if then some suitable kind I'm Credit fact Securities on your about new, see are you driven ASP a by can a – that John more sneak being that fresh wondering comments that's or really improving. of, for little lines growth I you some that that's elaborate you Suisse you Helpful. Bruce, LLC pricing you, Industry power? product help,

are negotiations, these negotiations for to distributors. with of to back with with we that's VPA also that's And customers, we a – to pricing as in the right, And pricing margin. long-term have an distribution SMB in response And around tailwinds on the question generally, of customer power a was and customers whether think then, does markets, some absolutely, the that think we I power give smaller I Harlan's the long-term in think environment basis, the volumes. kind well. right, more gross in Yeah, chip lower it whether of shift as kind companies, consolidation, that our set

environment, be to just say, larger maybe of pricing favorable been, reductions whether from pricing tail, areas and a the some of seen we've in it's some overall, think, that's do customers, on managed smaller would increase kind long I we've of our able So negotiation. price kind annual I in the with

over but our is We're that something business not clearly at is when It's margins easily at tailwind. look we it definitely year-over-year. kind see kind LLC is Credit able see unusual quantified, Securities a to time. either Suisse or our slightly we guys. So, standard a it's of the come product stable something William - Thanks, (USA) would those up, Again, constant normally of cost in down which past. John Pitzer

Yes.

you, John. Thank

Our Danely question Citibank. Chris from comes of next

line open. Your is

forget Hey. it maybe who on to mentioned shortage? Can and call you of Is that? I all, or impacting this Thanks, earlier, get shortages said is the expand there. we get worse sales was end? better? it just but your when you can there Or a expect What's you in at lot think out on going do guys. this to

we're Well, time. we shortages I suppliers. at are that from for haven't was Maxim, reading, lead having a other we hope of seeing clear had reports and not products times shortages of I and long extended

flexible right supply before. than robust our think lot is and now chain more a I

are to frankly, diodes, passive there few But complicated components there's and said they're I Obviously, we're internal So that's that of there a be a shortages or needs you of think not discrete else. from But easier reviews, shipments FETs tightness still us would deal for products us products have resistors, we the and something to wanted very because in components, I've delay because and what bubbling where produce, our to they limiting to Maxim ones the not where those than able be hearing me have Frankly, chip. all to heard. like get like are some our in not customer couldn't shortages, from read they're BOM of that capacitors the products. build cases somebody areas Either enough to they with. wouldn't something. selling severe heard they're

a really our of reason internal we So, as forecast have not heard business. reviews the or in that reviews

Tunç. Okay. lot, Thanks a

You're welcome.

Chris. Thanks,

Caso from comes question of next James. Our Chris Raymond

Your question, please.

Good you. Thank Yes. afternoon.

about into that you and penetration talked segment new How more long setting benefits margin I growth? the Industrial revenue. think both continue get distribution channel guess a of revenue do faster question how question you is can now with distribution average? XX% that you grow a regard Just distribution the can than to the record. that Bruce, the much

to I both of a specific direct predict distribution we target our Obviously, as distribution. to percent on the for We don't through and through have mean, sell a company it's hard Yeah, that. revenue. business overall push

the Data if expect a so, at some businesses of like lot both of are of think our the do those lot a you of healthy businesses, of Automotive to direct, whereas rates. And Center, does grow lot a go distribution. we or And of kind through Industrial

of peers, we push at some up to business, we if we of look XX% both of look get can it When distribution revenue. So, on our their do channels. at kind

So, I we do continuing think we're distribution continued there's a room, some added in partner and Asia. as – mentioned, new Tunç

kind small really we accounts. is the of of into selling We our lot in to continue marketing those simulation website application do limited the and notes all models, to whether kind spending of how suppliers support. that as allow design really or items our for better someone pick key a digital design sell look as an collateral and our of the with unassisted or around just the We're win, no find also far one new initiatives around part, that's part, partners really for having and it company effort, and on catalog-type of

our role very important there's a But better. get application a the started Of help we engineers help course them on and can still more customers. process, those be go to sales the to going for

And initiatives us. so, for are all those big

grow go would to a it – have to business. revenue as So, – Where to to of up? I continue percent a target. grow it that we expect get don't ends continue bit specific expect to We little do a faster.

Great. Thank you.

Yes.

Thanks, Chris.

you. Thank

next C.J. Muse comes from of Our question Evercore.

please. Your question,

customer ago? there, interest to Should to business and predict breakeven. a two, three afternoon. and quick the good know growing actually side. visibility added years your I the say, versus we year-on-year, follow Thank mix to I you've the about expense now you of breadth can that on question. be kind you business that for Thanks. but a forward? of went perhaps, now up now housekeeping, And talk one, then, your modeling ability taking going question there Yeah, only curious the guess, XX% greater Consumer

side, of term. Consumer the on ability the there's think I short to don't that our in a big in So it change project

projections are think longer-term in can smartphones. Consumer, outside that because I do still swing even around, of not easy high-volume that to there are things applications

years much difficult bit because of Consumer pretty one add be I'd projecting wins to other to used projecting number. pretty customer. still largest as or little well where in or of being not compared Automotive. up the say production to a markets it to revenue as to But all some it's that are like get So, that our known has still profile ramps well a our two exposure is out to them And known, growth easy design better the are gotten

in So it's better it's but still it's – before, predictable markets. our than the still least

your probably question, on the QX in come point due OI&E just be is did view modeling November. note housekeeping million of we in and a to just line QX. have C.J., will that bonds expect breakeven Yeah, do from in absolutely One that $XXX we thing

of plan is off. current pay record to those Our

lower debt expense, or will the than the the increase that on balance we that So higher – expense paying earning and sheet. were on are the interest on interest on we cash amounts

you million actually back half $X we line year, $X favorable QX, turn So by per quarter. get OI&E QX, the can actually to when of that the see to million

you. Thank Great.

Yes.

Thanks, C.J.

you. Thank

from Our comes next of Christopher question Susquehanna. Rolland

Your line is open.

question once on Data wanted guys again. a Hi, We behalf execution guys. the power the Chris ask to management great Center. in Roland. David you It's of on Congrats Haberle on

XX-volt talking up Center on beginning was is Can recent you're of your about One of what call you outlook the in a whether recently Data and XX-volt those competitors the for any XX-volt conference your theirs. in products? talk to transition to inflection see

two Gen X one we Generation So years we our have introduced definitely now, of and the working themes products. and our some that traction, three after or XX-volt were for was going we're distribution X products on have which

to think technologies. there our market terms in acceptance, them now In and certainly voltage standard, more talking showcasing are interested customers we're and distribution this of I

I to it very what far so will hard the products, first predict ramp. it's rather I successful start. And plan in think ramps predict that been going predicting when trying in of it's but to think to it begin not of report starts when terms revenue, we when we is actually therefore, than these have to do

of plan our that's So record.

technology. and like do products obviously technologies customers, by and products they and our are Our reviewed our

Thank you.

You're welcome.

Thank David. Thanks, you.

you. Thank

comes line Stifel Kwan question from Jeremy next the of of Our Nicolaus.

Your line is open.

you. in trends seeing of more a afternoon. Thank Good Yes. your favorable for you products. terms – of a the was to just tighter wanted pricing capacity ask anything pricing of that own if a I question you're change as seeing there landscape pressure getting follow-up you're kind mentioned little on and internally I terms foundry on wondering bit is if is front. in any

different pressure. so Yeah, not read, technology honest our but and in really of – or in from in some which nodes reports tightness read I've are be you with we are seeing capacity strategic we've I'll resulting neither reports, you. pricing we're these the a foundries,

it's affecting really that's us. So something not

Great. Thank you.

Right.

welcome. You're

Thanks, Jeremy.

at in And I time. this further queue questions show no

will with and conclude you, Latiff. in for Maxim. we participation And call. interest you Thank conference your your Thank today's for Okay. that,

you. Thank

Thank you.