Synaptics (SYNA) 9 Nov 232024 Q1 Earnings call transcript

Good day, and thank you for standing by. Welcome to the Synaptics, Inc.

First Quarter 2024 Financial Results Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Munjal Shah. ahead. go Please

Investor Good today , Call. is our can call be of the Relations thank for Head you name broadcast Michael accessed call on Thanks, CFO. Synaptic's afternoon, Hurlston, First Dean us of the our I'm the and on section Munjal Conference With Quarter joining me is today's at and [indiscernible] from Shah and Relations. President are live Fiscal My synaptics.com. company's and over CEO; Butler, This being and website web Investor XXXX

addition we remarks copy In to website. posted a Investor our presentation, supplemental prepared have these slide of Relations a on

release detailed In a nonrecurring on certain can costs to Relations provide press and company's at basis, items. company's will today the noncash results. compensation reconciliation accessed management supplementary website of issued a section from recurring after or close Please acquisition-related which addition other and the results Investor non-GAAP refer the or be GAAP market which for to the results, of GAAP non-GAAP synaptics.com. excludes share-based

to would the will Additionally, course forward-looking like conference call, we that Synaptics you of make statements. remind this during

results will any of factors cautions that suggested I projections actual to obligation these and our performance over to performance contained liens and control results company's update actual materially give expectations statements current that to they most differ any and beyond inaccurate. statements. Synaptics of annual the forward-looking in differ information. turn condition, uncertainties current to objectives, subject could on Michael. risk reasonable, to and a Synaptics XX-Q quarterly and assumptions SEC, to for estimates report risks the on statements. and the number are are plans, now the forward-looking may including reports prove periodic company's disclaims materially in be future those may from and expressly our financial our XX-K to forward-looking results business. filed Forward-looking All any you Synaptics operations, future report important Form Form relating We call the from to with recent our refer be cause

Thanks, to Israel continued like this their our their everyone effort thanking welcome I'd difficult like Munjal. today's by country. start in for period to during team I'd to in call.

during Our in team fortunate work continues few is we've of for inventories our there. With years, In that tirelessly expected. been our main last are with their face outlined as business up the essentially is to or we several mix and to some calendar In still and channel to but enough saw worry meaningful a of return our to in the long-term team months. continue Margins the below families Reductions both work said, establish in do, Israel, target. In bottom over line we've due enterprise. to we and our have the numbers are enterprise continue out to be uniform we business lead toward have in and we us at product now start XXXX, target to and a are our short, should normal as the thoughts down presence theme in believe back mix, our the that lining improvements. climb quarter, come should passed past with overall today's discussion model top not particularly colleagues. the to

orders recovery is the are While is and place our Customers engagements have strength. uncertain. showing started again, to visibility increasing, to the slope of pipeline

slightly midpoint range months increased Moving to above expected. compared and than the September performing better Enterprise guidance were our quarter, prior with X% our of the the PC to revenue X products

midpoint low margins discipline putting our drag end delivered the and EPS in at guide. us a guidance. resulted the spending non-GAAP Our ultimately We above product mix of gross the imbalance on maintained of

we [ done September, we redefining was with in device, IoT, to our to are to our design is by our the the continue adds As I'm IoT portfolio SYNXX-XXX very Synaptics' and ground with schedule. This multiple first product make and Day high-performance breakouts ]. the new and a first cost-effective on we wireless our pass Core Beginning Enterprise wins products, a from current device the and team. the Mobile. core success as product Wireless, discussed introductions. In product single-stream introduced that report up proud progress device Automotive and was at delivered Investor new

other we dual a to customers. triple SYN-XXXXXE, are and radio SYN-XXXX, introduced one-by-one the XxX beginning XxX a XE the triple the combo at devices X a this combo all SYN-XXXX, The WiFi year, product, ramp

broader In expect expansion to addition, partner, customer as first saw we the next first device development and from dedicated quarter, of our market tape progressing channel with a broad we planned, the module into In is initial reach the the marking the extending orders goal base. year. our new our of out chip the

market, automation designs IoT cameras, bars, Finally, opportunities and high-performance in are logistics, and applications. sports sound and multiple won TVs and the industrial we trucking we in new engaged drones in

deployment. supports kit run and the communications extensible the variety software adaptive and SoCs, for can demonstrating designs in processor highest operates portfolio, includes intelligent Bluetooth learning toolkit intelligence for and cancellation market. Like Synaptics models used and development DVFXXX video be this cost collaboration we framework road system other processor efficient flawless on platform. introduced our of power chip The map, software of device also DVFXXX. our the the utilizing Wi-Fi, unified our applications. require that a recently optimized execute performance existing noise unified these quad-core machine Early development artificial and standard rapid a can coexistence. In traction device All The unmatched SoCs on a from to interoperability Linux-based, and chip, our

products, our quarter, more our some applications. the general-purpose and with base in customer others As operator Wireless in had traditional wins several we for

ESG and half more the their goals. efficient streaming European For size customer energy that example, them helping our next-generation predecessor, SwissCom BoxX, is of TV its launched achieve strict device, XX%

new market. wide to targeting enable a of expand family will SoCs, general-purpose our of Soon, we announce applications IoT variety our that Synaptics to expect addressable

With two products performing had headsets. during stories our expected, opposed the continued Automotive quarter. Our Automotive but softness diametrically enterprise and and Enterprise products interface better than PC video in and

Our Volkswagen Tata ASP move offset is remained continued price and Mercedes. new steady products competitive size Toyota, automotive benefit corresponding at larger Motors, accelerating, The wins the with screen to TDDI-based is but by pressure.

sequential LCD which as be demand SmartBridge a and inventories of favorable us to is Customer Another local in advantages QX. fiscal priced high-end levels adoption improving. automotive second brings is have back level trend solid giving bright appear spot which already in have of the rollout. PC in increased to performance longevity our to OLED dimming, confidence normal added screens, growth with and

and major across and TouchPad continue Our perform Fingerprint well smaller with design customers. to solutions wins OEMs

In seeing focus several solid are enterprise traction addition, within that we areas drivers. we growth believe long-term in are

rates ]. for initially a projected. early and wireless forecast Presence customers, voice [ of Logitech, hybrid our our higher with attach laptops were Human and algorithms had performed Solution Detection We near-field product processing first that leading as premium utilizes introducing suppression as our noise well as AI-based better than Our than headset launch one far-field for

XX low-power battery Our to of audio up hours SoC enterprise-class enables life.

as weak inventory of levels persist high the remainder enterprise However, at levels. relatively is

and which customers spite of is and engineering design a normal are models majority momentum In slower introductions. time product customer than only products, our addition, normal to time new this, Mobile, it of to flexible are a return run our interest, for we plays before ramps to at cutbacks remains wins the of In our handset android with matter their the affecting we line In makers strong initial see OLED, believe strength. rate. more of of shifting

doing Chinese conclude, and of current see future. the following levels. Outside Z the Our to successful launch expect China, near competitors business our the wins to stabilizing we on, FlipX against customers momentum follow continue is follow-on at in build market. better foreign in phone, domestic To are at the Samsung, we

continue We still and limited. this XXXX, recovery in calendar slope the of recovery the a visibility expect is though strength to to starting

enterprise inventories overall to margins. We return over our and few next normal are levels mix quarters, confident improving the

our executing with are opportunities IoT seeing addressable to traction Core and initiatives expand We focused already are our market. on our

Dean outlook. Now quarter review let and to results first call financial over quarter the for second me a our turn of

Thanks, Michael, to afternoon everyone. and good

started, believe creates this We want our remind and revenue to new that with Enterprise investors fiscal have investors similar Core an this comparison I reclassified categories, we peers. measurement I more year. IoT, areas beginning provides and into of and get Automotive focus Before direct better with and Mobile our easier

slide a on basis, historical supplemental Relations the Investor posted in We website. on this our presentation have reclassification provided

guidance. Revenue XX%, current which Mobile quarter the review into by results Core Now the were Enterprise was above IoT, our Revenue followed completed XX% of let million, recently and our outlook. for quarter, midpoint respectively. of prior the me XX%, was our the September for financial $XXX.X and from dive

importantly, in inventory XX% we bottom recovery expectations While to and area increase but distributors' were relative from nicely In was our during these down the our has IoT and Automotive, September consolidated categories we IoT not by X% moved down line outperformed This results while quarter. indicated September we guide quarter. revenue inventory did quarter, PC over a by acute more should in Core channel quarter channel believe products Sequential by our XX%, sequentially, with in consolidated experienced XX% mobile the basis, former sequentially QX August up product Enterprise but and near forecast products, former accumulation our now which revenue what of of to year-over-year. the and the but is see almost the during coming shipments. be grew sequentially we was entirely its revenue PC XX% growth depleted an its most our final Year-over-year quarters. to our driven quarter prior point-of-sale off X% down depletion increased as believe former bottom call, was sales. On year-over-year. was

likely to that optimistic continuing the revenue quarters. indicator with down in September IT which Mobile next spending Automotive, XXXX. of as were forward the directional of quarter are largely quarter, product year-over-year. shipments during the across this We're down year few corporate work modestly look we calendar product place but in expectations. slowed over be overall down line a our enterprise the balance was into We XX% may portfolio, inventory the will sequentially take XX%

Samsung. are are seeing shipments share modest We in at improvements and Android gaining

more as OLED encouraging, While is continue adopt remain volatile. recovery the we customers market end will Mobile mobile ultimately higher-end believe displays, to in flexible

had the and revenue of than XX% XX%, respectively. XX% at two During approximately greater quarter, we customers

income and our $XX.X Non-GAAP tax within mix share. control. The net intangible our skewed was a $X.XX continue million Non-GAAP midpoint share-based costs. intangible the million expenses an the million. we which the guidance bit quarter an our from per rate was us XX% amortization maintain negative, near September was $X.X year includes range non-GAAP of quarter to compensation expense was XX%. down in the share rate and includes lower. GAAP million X of GAAP our compensation in margin operating million million, expenses of expense of the but and of from below GAAP September below were million $X.X asset of of operating GAAP range. GAAP quarter the high was loss million, net and the tax $XX non-GAAP which and end visual our net $XX.X quarter, a was X% margin product $XXX.X guidance preceeding the asset a $XX.X ago. per increase quarter For guidance was September as share-based September same the of non-GAAP costs, gross $X.XX loss amortization XX% prior September resulting quarter diluted of earnings was tax of XX.X%, quarter as from $XX.X gross range in decrease million quarter of quarter. September $XX.X or for

and outstanding million equivalents the million. days million and from the quarter to This Licensing the million. of due of at loaded early $X.X on collection depreciation of XX decline from September operations QX. quarter last Capital short as with investments some preceding payment the transaction sales cash Receivables $XXX for were customers days million from during to linearity decrease were was quarter quarter. turning $XXX sheet. We front-end of the XX we was our balance of completed quarter. days, hand, Cash is Now expenditures a $XX down primarily fiscal sales term the short-term cash, end Wireless were $X.X ended and the from and flow

$X down purchases. ending our Our cautiously inventory we was million $XXX reduce balance million as inventory

days of prior inventory to XXX Our also XXX balance on declined our calculated the at end compared sheet quarter. at of

up our distributors good versus increased Point hold the saw continue our to distributors reducing our inventory in outlook. with September inventories fact, June depleting Now let expectations. sale me line with to turn December our progress quarter our among and in at of in quarter.

until ahead, customer is met. Demand we products with current equilibrium look the [indiscernible] XXXX our of we continue distributor focus all levels. levels reducing on further As and signs full inventories at shipping historical to continued shows below almost

recover timing the gross to Mobile product is improving from from expect and these a margin We in shape headwind PC still uncertain. see and which creates a recovery in markets, strength but of levels XXXX, mix perspective. We end

certain as these be are slightly on for expected to end ongoing Given to be to prior down to December flat $XXX inventory IoT $XXX channel up dynamics million rise expected is of quarter. Core corrections, a and ramp. Mobile and be up in the to we be range inventory models to quarter, and quarter revenue million, December in expected market the with the roughly anticipate the

mix Mobile XX% respectively. products We the quarter Automotive, expect approximately and and XX%, our Enterprise December and IoT, be XX% revenue and from in to Core

gross We the in December for quarter to expect GAAP be the of to margin XX%. XX% range

We as in remains mix the expect XX%, occurring unfavorable in other ramps with of roughly to faster XX% margin inventory range non-GAAP prior areas. than similar the the depletion to quarter Mobile gross

to We compensation. of which be to operating in includes amortization share-based expect million quarter expenses and GAAP the million, December the $XXX in intangible $XXX range

is in expect quarter $X.XX non-GAAP of December per be December expenses estimated We be $XX net to million share diluted is million. per diluted share and net to to basic shares. XX.X share range non-GAAP million $XX in in be $X.XX income range GAAP the the to operating in to $X.XX anticipated range to per for $X.XX, quarter loss our the on expected of of the an fully

wraps the million call quarter net We non-GAAP Operator? interest GAAP expect the over start our with like December the to to approximately operator the be I'd of approximately This session. prepared corresponding the Q&A $X expense net turn remarks. up expense in to interest to $X million. now

At this of from Christopher Instructions] session. question [Operator Susquehanna. time, question-and-answer comes we will the conduct first Our Rolland

come Thanks Where the enterprise, are any come back. inventory? there that And for or for back the of that pockets where clear guess you well? to this and most the kind question, I now reasonably are waiting see inventory we're overhang orders starting are to guys. products of areas are

station if the One that's pockets dock recovery display margin that acquisitions, the port I'd and side great of was our the bit around for still obviously business. The that. seen us. is say a had Thanks Michael. is of this to many we're Chris, remember, and through inventory, Yes, has that driver question. going for great, two you in a of We've concern. docking of our one DisplayLink, business some one one quite the

but we're We've for had and this indicator well? well. still quite do time I a probably classifying in audio out. we audio, as a in a frankly, doing did of And We gross channel. docking that, quarter The in business. been these for stations other bit it orders, has bang And see clears Audio. couples up one a the now solid think wired We Obviously, in that's area matter inventory headsets there's of is bit What's slow. PC. accretive again, just and for margin it's area, product really it's leading dribs good of these little inventory [indiscernible] a PC started that us. And a to think

So news on in say, the Enterprise I'd good sector. balance, even relatively

with when but issues you for et other like the consider Maybe It mix on target there are Or gross XX% be too. margin? And give us a your pricing, to margin big one it is here, might anything we return gross then, to to able bit. seems line like margin maybe cetera? Excellent. problem like Dean a sounds It out gross again? might could pushed any time be

is Large [indiscernible]. this Yes. Chris.

little about business materially softer about products Any now. new from mild going the a might As immediately. pricing really X we being having guide. pressure, us pricing year or Enterprise maybe is talked prevent margins a and ramp move calls, is some that it's earnings there's mean prior pressure Day even our factoring at from but not into Investor is in to I actually on

that's has mix. And starting our do a So concern. mix of Mobile actually, and while of that, much same looks in our into IoT hit is It's all that's that little back actually we as not move that, starting of target Really back quarter. is normal is really near-term Core around areas in think behind sort the of get bit margin model? to need it's like up to faster and how We to just time, we target kind business at for all move what to its bottom Enterprise actually up. a December mix. move the probably

a headwind us. for So that's

Securities. Your Kevin next comes from question Rosenblatt Cassidy of

Congratulations on Wireless for the versus you're new great products give an idea will the ASP be you atmosphere. can Interesting those past this quarter lift what connectivity in the products of us introducing, generation?

it for thank cycle really question. point, early does good we're the coming off Yes, bottom you the And moving certainly in feel relatively your nice it. called we of of the to like sort now like, off words. feels bottom. we're and now I'd the It say

the everything high-performance Investor we're is Bluetooth right the then and products, market areas we doing the now in broad these high performance, that opportunity. us, Day, categories for Wireless outlined Our the three in the

What a is product [ broad, and about range. this the you of size. benefit high-performance lower $X range, sort and a XxX sorry, I get a to is of to in here, one-by-one the idea this a of before product. give so think you [indiscernible] sort area. in talked ] the idea $X.X I we an And $X Typically, product the ] [ in $X in to one is had to It's the XxX is and

sort our maybe on the model or at this opportunity business Investor sort slightly from continue of to margins IoT and XxX the improve a at see Core gross below is a corporate Day, margin some perspective gives cost build taking an of out So us of we to outlined this device. is gross by as of

] smaller any performance, landscape? away I competition? you're head-to-head imagine What's competitive the competition the and die And [ from moving with Great. higher

want I security we high Yes, I don't that's that across we're the say are things to obviously of these market, but run really on moving particularly WirelessLink. in drones, mean for cameras, video streamers, the have the the right. performance, market, video IoT

We incredible that have video, are signal because to this really that that and over can generate. advantage wireless out just of there's competitive the long that of we're the deliver really an from standpoint, a able of like range. where folks quality can not many performance We competitive long consistency do there we

cost So we XxX just well think and front. we're really, positioned this helps us the really on competitively

next Krish TD question Cowen. comes Your from of Sanger

Congrats environment. guidance on and the the to good the results

question The can it? so you be flattish? on in a then first think impact was think Based you're I Or Do far either have Dean. could or quarter, any follow-up. wondering be I you the it there could seeing seasonality into launch? on color for the give Michael bookings some do you And

Yes.

bookings, Based see hit we on take me what one, think that on actually we've bottom. Let Krish. we

based right? but actually December into is anything, if what this slope have looking et rather visibility the We point, positive we like, seems and look the on cetera, exactly and looks I March beyond up. bottom be less can what fact, does moves on to see anything dynamics, not as like it it us things forward. than negative. like is likely In does quarter mean trajectory, open guiding channel at look look specifically more question bookings We're but that positive looks like behind it into are or we

Got own it. Either question is or maybe much days helpful. it. job days? great quantify to to you was customers? or a like terms inventory. today you same Got is for I which you've want beginning a X target Dean, to inventory your done inventory there what in had to very And back way target? a Do excess year? ago the days. That's of updated Is go XX months of on relative reducing historically? your And it along What then is do the inventory path, Or it the follow-up at there have how days, an

Krish. Yes. of It's kind question, an interesting

hold does can see you what we're start down we As days wary drive XX momentum here? But very predict Typically, like how look the well the And that business. in hey, think super bookings, I a like should far inventory. to contemplates, like that would something we of little a range. from mix to consistent, kind we positive want

a inventory be outsmart be days the So and continues to and and upside down respond not going we're to to probably any get trying of I it bookings little bit, to on able or think but then to not new to in. mix any float wrong cut cautious sort ourselves flowing start

time going quarter. from we're so on is ship sort what to do, or keep relative in we're trying level, we've trying we out distributors not far first the the less One As specific be last ship like a as channel out, eye targeting point to for inventory an saw trend, in move quite to shipping quarter a data September, been to Krish, basically start than and that. the to of without June days shifting, up to actually

we're far what of channel. couple in us you'll what think from kind trend can back of as us that next have cautious the probably the quarters, to of I shipping over to Until a just as normal operations. they on kind So nice we we be see channel really of get sort continue behind

Krish. So hope I helps that

Quinn Your Needham. next question comes of from Bolton

buy you is sure a performance a for recovery? your of I'm about to indicator demand more the just also docking it's the customers products? from little weak why not just I'm you think is a demand talk that again IoT make guess we're more in what stations PC audio for seeing enterprise consumer-driven the the recovery? Nick of a trying Doyle coming Can on typically I environment. rising same is that solid Quinn. Congrats and bit enterprise

got I answer. mean, corporate for spending corporate direction you've general and biased buying. the Yes. toward right the We're definitely

in because are relatively be the our is ship enterprise docking really typically the stations, So PC areas well that to correlated will headsets, follow they focused. and products audio into enterprise PC

of And of quarters, in certainly with We're coming market. But there. docking off we're our a bottom. your bit than And heavily we, earnings for we had of certain over thesis. PC. And remember so the the expected business particular followed consumer headsets. I on mix to indexed those some couple later has PC folks agree start pretty the corporate, little pulling calls, about last I done and less because that well that through have We docking us station to and fell you if headset previous station businesses think segment

we off expect bit a little to later a saw we roll well. now would as later that So recover

So prior it's remarks inconsistent totally downside. with not on the

the move On as fast see as certainly, consumer same the doesn't upside, we markets. thing. And Enterprise the expect quite to

lot way about but yes, guess back a of XX%, we're then different ask the little Is a it and already, without gross a bit I'll Enterprise to there recovery? talking on XX% to inventory get the I call And margins way. a

maybe have some add Dean Yes. color. take and that I mean, I'll

challenge. obviously is business. Enterprise best a I I mean, our business think gross our we're, that margin is

we a that. a outlined margin the just with I we and margin we improvement mean in more cost I business. like a struggle reductions is help it very gross the things I Core will XX% Enterprise you But line do second think to think bit what of and there. can't on to improvements, ago are, lot back IoT have and area on if a it get dependent that recover, that the as we're the of not be doesn't making

you what just all you'd little I bit probably reiterate normal. way but that just that, does to or get beyond shy inventory to fall would of If target, recover up back getting a to moving of the Enterprise get back Michael and Enterprise to on back need said. any you Yes. said. not, Enterprise its were level normal It like this chances Nick, would from target depend to

from Fargo. Gary Your next question Wells comes of Mobley

your primarily region? large called that knowing have are from military many how to of think, ask hope have you're that managing the I safe. maps And and a Group in duty? safe operations and such wanted those DSP base, how as come been Israel given stay you well I that about those acquisition. out circumstances, I employees day-to-day road to employee

Yes, We've for the had I sentiment. employees question. the of Gary, less called service. And than obviously, thanks XX% appreciate slightly into our

Some that able type been sort called other actually have backline and doing are They're front activity. of the a back intelligence of of bit. of those meaning jobs, some lines multitask to

backfill So our they're said, that perform to projects key schedule. very for we can we're to keep I are there's and engineers of important with those that, projects usual. able our it as team, across some the good plan as obviously, trying much really mostly That through on globe. And being going Israel think right as most now, stands, we a have and

that, Appreciate Michael.

you're that terms at Is from and getting the as current partners trends wins How up that your appreciate P&L as of well. from XX% well, But your headwind, gross flowing margin? presumably That inventory about I pressures a foundry cost does presenting but that is follow-up, today. about you're or some the mix in to I quotes? through you statement. the does supply ask design fit the your goal higher gross wanted my that margin think foundry some As inflationary are lack of pricing with that fact into happening as chain. match the seeing

I cost, we're, are on if, balance, Yes, down our going Gary. I'd modestly. mean, say,

suppliers, seeing So we're certainly but no strategies OSAT over [ foundry there's again coming different they've that out a prices that our the pricing to the to and back of in It's gross to in and that XX%, in come general, well the is figuring chain. The pressure, seen, decreases we're decreases. a mean, extent, in modestly, seeing working biggest pretty as XX%. relatively I'd but job. have cost good off packaging been ] test margin tough kind it's cooperation to remarkable modest on but from take we of I actually not move, XX% business. our And keeps foundry significantly, and move with up supply our say, there. operations cost why certain there secret and we're I is out down team question done end on And wafers, partners, we've that's mean, over the have our target

contemplates doing I is again, of Dean in that which, jacks but also and a pressure jumping some not wouldn't we're that pricing supply seeing talked I call help, think yet. modest about the what We're level it. chain,

Your comes next BMO. from of question Ambrish Srivastava

is I understand try with or map And business that just to of of in that sort bottomed of the the go? you yet? how just Enterprise not pieces, the to had business before. now? did mix is of new consumer challenged inventory the I'm segments Is part where the wanted that that Core much the Or of to part out trying that what's assuming Enterprise still really where IoT? what

every Yes, Automotive reported just is being new and said, me XXX% quantify of we in bucket buckets our Ambrish, statement today. That had and slice PC our the bucket to let Enterprise and that first not piece. sort we're intending a dice former historically make

as Enterprise out, on focused that XX% there that or laptops. formally than we Enterprise the had in more Our focused. historical was it PC consumer mean called of is but exposure business was certainly I significantly we largely well, majority

order in buckets. new PC bucket. to just a our captured our like can historical you of it compare and sort first fully PC of sort take Enterprise give you that's Automotive Enterprise simplicity, number just And the and for So

Enterprise-related being PC do that and/or devices. kind So of order Automotive-related and X/X the up, X/X a of the the bucket first makes devices balance of

helps So Ambrish. little a map if you bit, that

does. it does that Yes,

it. Got Got it. Okay.

back to just like it the peak indeed the this stabilization the is. from and to comments seems is trough, trough the, if then So on

saw I think our, than you it everybody else. earlier

think metrics I understand just same. are so we've the yet by and other all off And the that you're same, I'm are XX%. few cycles. that trying look at, metrics and you never through been to They there what many are

here? the terms So what that that you bookings, provide the cancellations, of support view in to of rate at indeed we kind can bottom are of

Yes.

at What booking But look push the slowed. generally, a design ratios. sort are some the noticed actually there's quarters accelerated, ramp, standpoint. activity already from is bottomed back. last at at expected a that a over a lot quantitative things quarters, will at me cetera. into actually several We Let look of booking conversations we look rates cancellation looking on and to standpoint, like of has rates outline customer qualitative we've significantly backlog. What noticed et hey, go rates, book-to-bill that quantitative of from that slowed, we just few booked requests you we out Certainly, things

about It's of know, of from metrics, it the very their saw second-order what it's a back to We fact, to course always to normal backlog, peak noise May do. people magnitude. business. is last started cetera, it's call, and almost seen as to some reschedule it on slow actually sort people rate. probably back on and amount actually to when allowing talked normal There's their volume the But what a as over of needed X order is peak we et these started we they reschedule in you people our a in that little in In system try cancel quarters now. X receding to we've the like down

We with also do the same. partners channel to work

way, it's on of this amplitude balance, down being point getting of we've each do quarter, We as certainly the normal sort to close seen So business. sustainable. level where see course and that go way to

Synaptics into are job. forecasts probably on here I if a internal a and to And make 'XX. the [indiscernible] going. did up business team look anything, And I direction of where the think hey, biased fact, we credit teams call In we're the think, and pretty at on to early inventory biased teams good trying as down to

Next from question comes from of Martin [indiscernible]. Young

question The you partners any you've And more partnership you developed. medium do on the segment new address customer the those partner help geography or maybe about base? module you talk of term? the see new in developing to Can

in be are partners would are because enable. important good the this is into a able we module Yes, we can us broad market customers try step. Investor Martin, outlined The Day, for not question. that this that to as we move to customers thanks the they serve strategy that The really first for

and the engineers. customers semiconductor the but know there is of, like business smaller application customers our that understand the So many all our can't we business, that huge that big built are we market service around a nameplates of simply customers, with there's

more that customers is that important So that, we of like a are I would going think serve we this customers Trackers applications guys Inventory in that normally after particular module partner that serve. they and into bunch is really But not customers versus we Tags would getting service. these are issue There the the things couldn't do. are there like things and that

of a our And would this broad we that particular they business become guy, very, very, component can module so like serve array wouldn't we very meaningful partner simply very customers touch. a module of wireless our to expect because otherwise first

to getting once margin right our it partner this in serve new impact the and to assume distributor? similar a is earnest, on So maybe the or market new your to recoveries business impact business

touch, obviously It's It's we they're they to and almost like and number customers the hundreds in that, significant. mean talk mean of Martin. I customer we and report they're pretty are out. XX. to to, monitoring I we've that the Yes. talking the are would talking who

case, it's we the on multiplicative modularize magnitude would it modules, specialists like yes, because distributor. a and basis, but So have in with on that. of goes act taking our expect business of doing level yes, really the to They're really a wireless on that they it's focused It's combo the technical. effect. And to software on reselling a product, support they're work module, really, But in it. very it. very distributor ultimately, it a amount tremendous then obviously a They a like see

Hurlston now turn question-and-answer back I closing like the Michael concludes This remarks. to session. would for it to

thank of day. you to our a us speaking at have investor all like I'd Thanks, you and We to during conferences upcoming quarter. the forward good for certainly look joining today. to

This now conference. concludes the

now You disconnect. may