Amphenol (APH) 25 Oct 232023 Q3 Earnings call transcript

Hello, and welcome to the third quarter earnings conference call for Amphenol Corporation. [Operator Instructions] At the request of the company, today's conference is being recorded. If anyone has any objections, you may disconnect at this time. I would now like to introduce today's conference host, Mr. Craig Lampo. begin. may you Sir,

our much. and everyone. Adam I'm would you CEO. very conference Lampo, Norwitt, is Amphenol's We to welcome to CFO, here like quarter Good you XXXX This call. afternoon, Craig our third Thank together with

quarter the released this XXXX take trends we business some and will morning. give will questions. were then will and current commentary, Adam results an third I provide Our financial overview of then

financial may As make measures a non-GAAP during to reminder, and we forward-looking refer call, statements. certain certain the

So release please to our refer the relevant for in disclosures press further information.

the with and and The third company and of respectively. billion $X.XX, of GAAP closed diluted $X.XX EPS quarter sales $X.XXX adjusted

in Third XXXX. quarter local dollars of and X% the quarter X% currencies third sales were U.S. organically down and compared to

up local minutes. Sequentially, will market X% organically. Adam trends dollars, further few in a in and U.S. comment currencies on by sales were

up to quarter a acquisition-related flat Orders quarter income which of in costs. which GAAP third X.XX:X. million ], the was and million $X included was XXXX, sequentially, transaction billion operating quarter $XXX [ in third the ratio $X.XXX of X% the resulting of compared were 'XX of book-to-bill in

adjusted million. was income costs, $XXX these Excluding operating

a respectively, XX XX GAAP basis in margin operating 'XX margins by increased to sequentially. of and and points were quarter. the On points and compared adjusted down XX.X% GAAP basis the operating XX.X%, basis, third was third quarter

well basis corporate by the the recent margin points operating the year-over-year On an impact XX due in modest to adjusted This but currently which margin primarily are to basis, sequentially. decrease compared operating was XX quarter just operating acquisitions, of basis below of by third average. decreased 'XX dilutive increased adjusted

in sales of basis, in with as a of This the benefit margin team were pricing agility our continued taken levels. we which organic strong prior adjusting on conversion our year. On well the costs represented operating the performance organic the actions pleased lower organic reflected an smaller-than-typical downside performance, very as

levels. adjusted conversion basis, margin On a higher reflected in the strong increase sequential operating sales on the

continued continued in these around team range are profitability execute well proud despite quarter, the have sustained the to we and Our of challenges healthy world. the levels of to

Breaking third XX.X%. $XXX quarter 'XX, the XX% and the in increased Harsh of segment in sales relative segment Solutions third by to Environment quarter operating million X% Segment and U.S. down was margin results were by organically. dollars

the $X.XXX billion in and by segment Sales XX.X%. margin inorganically. dollars operating Solutions were the in XX% Segment declined Communications U.S. was

operating dollars and the billion, X% organically. were Sensor Segment XX.X%. Sales increase and segment in margin $X.XXX in an X% Systems was U.S. Interconnect by

basis, an year quarter prior adjusted variety was third period. the face the compared in $X.XX the to on company's X% and an effective decreased quarter. XX.X%, compared continued the to diluted of XX.X%, XX.X% was This the the result, during especially compared tax EPS to tax The quarter third X% at to XX.X% of 'XX, respectively. was effective the for GAAP GAAP rate and EPS excellent diluted the in $X.XX company challenges that which $X.XX of up considering third quarter $X.XX rate And to 'XX. was adjusted in

third of free our or cash or cash million net million flow of $XXX quarter Operating in the income. capital net And flow of was XXX% net spending, XXX% income. was adjusted $XXX adjusted

cash pleased such flow to yield. strong a to deliver are We continue

and sales outstanding levels. respectively, and From within XX, the a days days, standpoint, capital working XX XX payable all inventory were days days, normal

company's X% effective payments release, today's of to in mentioned beginning in in approved has for $X.XX the dividend earnings quarterly January of increase As Directors company's Board the XXXX. a

million. And of price capital when stock dividend, our common shareholders quarter returned approximately the of $XX. quarter, million During X.X repurchased at total during approximately to $XXX normal company third the average the with of combined shares an 'XX quarterly was

short-term facilities. on debt the billion, credit which billion. hand under our quarter cash XX net $X was plus Total end existing and availability $X.X the September on billion, $X.X of included was and liquidity debt was investments at $X.X of Total billion

EBITDA of million. net end the And XXXX of the X.Xx. XXXX, our $XXX quarter was quarter third was at leverage Third ratio

We pleased extremely condition that measure. strong by are any very financial the company's remains

now to will turn I market commentary over who the will some call provide Adam, current trends. on

like fall It's I to Well, see much, pleasure you thank welcome the hope here a today. having phone in red And orange that out windows. very to enjoyable of everybody our my you're Craig, I'd hues here so and far. to the on all Wallingford beautiful and extend an

I'm achievements. our across the mentioned, and discuss our for on going outlook then fourth quarter year our markets, quarter trends As the for our to comment I'll XXXX. diversified of end progress then full and third highlight Craig and I'll

the third to quarter. Turning

Our in dollars the under markets air, results in as end and reaching and growth adjusted sales currencies, as in and quarter of local automotive U.S. industrial X% mobile third with than expected than per moderations better high were billion well just in exceeded acquisitions, end Sales share. networks, mobile the the offset by declined were markets. IT guidance our in commercial devices, we end earnings our and from the broadband contributions by as $X.X more military which datacom, diluted

sequentially third $X.XXX encouraged X%, orders sign an book-to-bill forward. second of going the a and sales the exceed that year of increase from in basis, I'm levels. levels, our declined billion, quarter sales that that's On pleased represented did and X% that quarter encouraging an prior orders by by but We're X.XX:X. booked company organic did especially

just of our And points. points third mentioned, that global just Craig management Profitability was the dynamically generated quarter improved by down reflected who basis margins face to sales. execution year. of We strong these the adjusted in effectively moderating and our operating Sequentially, manage outstanding very by in in basis as quarter. prior from XX operating already margins the margins team, XX even continue and XX.X%, was

high year from Adjusted finally, and diluted increased quarter, And flow very X% earnings. cash by $X.XX, in EPS we're demonstrations the clear in a pleased quarter and and with $XXX $XXX free the then the respectively, cash on prior with X% of of just operating flow the a that of quarter generation Amphenol's strong quality sequential third basis. in million the was and million, declined company's

I just And of results environment. organization entrepreneurial of we challenging to say that extremely this out amidst continue again team. well come our agility the quarter I'll the our of and quarter dynamic once this the proud and reflect discipline as perform

Q Our that far. acquisition last has we've earnings I'm been really on Manufacturing, pleased busy and XMA so closed since this team Corporation. year Connor And X Microwave acquisitions: our call, extremely

signed we an to agreement addition, PCTEL. In acquire

Illinois, of especially including is manufacturer for high-voltage designer million. sales radio markets $XX of power interconnect with manufacturer and Connor with of California, industrial of million. With Microwave a sales approximately the its $XXX annual a Based global headquarters Q products, utilized in platforms mission-critical approximately frequency busbars in components in automotive and is military annual

industrial provider we definitive broad signed markets a New approximately datacom in of and military is very is market provider Hampshire, sales measurement million. $XX antennas pleased PCTEL. based with for as global solutions. well components PCTEL annual test array as And agreement a products and XMA IoT purpose-built that of of the as the of RF a also to a We're for IT as acquire well leading

early PCTEL transaction We by to expect close the XXXX.

closes. the to very And Amphenol. the PCTEL forward XMA to that Q welcoming deal once I welcome I'm to certainly team excited Connor, and teams look Microwave

our remain confident acquisition Most great importantly, will continue for I value program the create that to company.

Amphenol. advantage ability and remains for organization, entrepreneurial our a upon fact, bring and competitive this successfully acquisitions to In companies core to these identify execute then into our

balanced Now broad. our dynamic times. highly and great end turning to served value And company's remains We're creates that pleased very company, for amidst the diversified, that markets. the particularly market exposure these

The strength represented year really of in So by organically. the this market. quarter. sales grew virtually to broad-based from XX% XX% U.S. of our turning a dollars military of Sales served And each our the every is prior strong driven segment across very military by and XX% in market markets.

coming as robust prior quarter, levels. the year. third the the quarter. to our teens sales of than look year increase from high for by quarter a sales remain expectations X%, in roughly And better we we which Sequentially, into grew expect And these into at XXXX, our expect we fourth sales full was

broadened of of the defense Q this the remain defense industry-leading in With market. last we position general, widest both And we products. where acquisitions RF across into range important we offer our offering to Microwave strengthened product market's further XMA, industry, and company's encouraged quarter continue high-technology the by the interconnect

the into current Amidst and around to positioned geopolitical dynamic and next-generation expanding investments world support countries for thus accelerate demand the thereby demand development increased We're our to going while well both potential also in technologies, long-term product this defense new increasing our continue increasing are today's to long Amphenol. their capacity are the environment, future.

really market aerospace sales XX% our X% driven had applications. strength this sales strong across of organically. with by the and was XX% commercial year robust increasing a quarter, aircraft by broad-based very The quarter And from in all represented prior another

On sales did a a our X%, that and better coming into just the by quarter. decline expectations bit sequential was than basis,

compared expect modest in XXXX, mid-XX% seasonal look As to quarter, sequential year we in the And increase a sales range sales. expect to we into we fourth the the now decline XXXX. for full

the truly team market. proud I'm commercial of in air working our

to paying market realizing our With aircraft diversifying efforts the position real jetliners, products come. for demand our high-technology strengthen of many ongoing our recovery thus benefits the We next-generation interconnect of breadth look initiatives years and dividends. to in are forward to travel for while these into

the of segments quarter. than mass The was other in declines the the transit growth U.S. our by in market. oil and in in represented decline as gas XX% quarter rail organically industrial and Sales X% industrial medical, market sales offset dollars by in XX% and did of applications more

soft their I the declined that the distribution sales distributors to industrial X% quarter. were positions quarter, have our into the than sales did channel was second market. somewhat quarter inventory particularly into which taken the expectations Sequentially, many steps to reduce as our third worse by coming want in highlight the in from

And into XXXX, sales we expect full sales to organic quarter fourth the Looking slightly of be by the year flat as prior the some are benefit our offset third we these levels. for versus from moderate quarter, acquisitions. moderations roughly to year expect

diverse to near-term us many demand important that no will our both market, organically I the this expand to exciting sensor complementary They to the revolutions our continue market, truly and pursue global opportunities continue continue electronics high-technology many acquisitions, has in across occur team this offering, and the capitalize pause of antenna interconnect, industrial area. of through our working so segments doubt strategy in I confident market. long-term and remain industrial remain on this outstanding Despite that positioned across to growth the to proud

across grew most represented organically. sales quarter. in a market XX% and very electric dollars This applications, And of by strength XX% electric automotive robust by automotive was driven The platforms. in XX% our vehicle the including broad-based sales hybrid and U.S.

sales into and increased second expectations our X% had that better XQ. than the much by our Sequentially, from quarter, this coming was we

we prior And For to expect remain compared quarter, sales year. the increase full the to sales year for we these at expect levels. of roughly XX% approximately XXXX, by fourth to

working automotive are I'm other performance is multitude the team including technologies market. yet new drivetrains confirmation applications. as who of this really new of in array into electrified their a well wins far the new focus year wide as of driving proud vehicles, exciting Their on another customers of implementing their a of our so design with benefits

forward Connor we position look products to for years come. have this And to to an addition of electric many vehicle manufacturers. the array even of for Amphenol from benefiting family, global broader we now With the

the sales in organically smartphones products was market in moderated of And U.S. mobile sales XX% tablets as by dollars The more that declining and in are our quarter. represented than XX% XX% strong sales incorporated of laptops, into and device by growth offset our wearables.

and sequential by driven stronger-than-expected basis, by was our smartphones sales wearables. a in that a increased sales XX%. And much higher-than-expected On really

we expect wearables. we more single sequentially and in sales strong the than high growth offset Looking moderate to quarter, as continued in declines in expect smartphones laptops to to the be fourth digits by

to decline in mid-teens XXXX. year, sales to the anticipate For compared full the we

time our Amphenol. the capitalizing market, on once third realize there's continues changing team job value agility remains of levels ability incremental that most of the opportunities demand resources adjust quarter devices mobile create real did to and outstanding While again our end to no sales. an Their in question to for with in volatile

opportunities XXXX, the into As their and for always beyond. of antennas, we head any products to may as leverage to our sales mechanisms of that array year interconnect this arise leading stands capture and team poised incremental end

reduction we mobile The equipment continue and in to through in represented market operators in as of declined by sales broad-based networks wireless Sales the a manage X% spending by our U.S. organically quarter. and XX% dollars manufacturers. network XX%

by than bit which quarter. was sequential expectations a declined worse into On X%, the our coming sales a basis, our

expect decline anticipate single digits mid-XX% in in fourth quarter, in sales XXXX. for full high of the to year, we sort the sequentially. we the For to mid- the range moderation versus And sales a

When systems, we investments work these the Despite in next-generation around our and challenging look continues short-term position potential to both Amphenol's equipment unique customers investment to realize once in our aggressively to again networks mobile that and renewed comes the next-generation from efforts this world. more expand of drive equipment our benefiting from service to team providers. forward the increased with manufacturers XG wireless benefits position environment,

in our did XX% of by better datacom while we IT in U.S. quarter ago. inorganically was had quarter. prior performance XX much actually expected dollars than year, And sales XX% represented decline in sales days The market our the the from

a in the the data in strong our by in by quarter, was better centers. second fact, are from The customers basis, in AI quarter previous sales In our much accelerating who expectations. XX% making on surge a investments demand sales significant driven third than sequential increased growth from an

to confirmation continued intelligence interconnect for also in leader artificial in positioning as Amphenol see team's of success AI-related intelligence. our alternative a applications, complex support We or robust the a that systems orders

we we year sales year. quarter remain of levels. these mid-teens in to quarter, the to As the decline we third expect towards And compared sales the expect XXXX, look fourth prior for full at

learning a intensive more products, I to am AI high-speed creating well industry. very than datacom of given driving encouraged the machine future. true for the positioned IT and This is manage by While company's our and ever products. Amphenol, unique opportunity highest a in IT for technology leading usage the the more applications in With power position we've broader in our we're interconnect interconnect the had market, adjustments inventory certainly global revolution through

optic In are addition, high-speed levels creates their leading performance. power our opportunity team drive that fiber equipment long-term to continues company. job web networks developing do for and to customers OEM the and our higher of provider continued enabling to and a just an service to outstanding products This interconnect continue

our X% in moderate the broadband broadband down X% And the market organically sales represented dollars Finally, continued U.S. of their to operators as quarter. in sales and were levels. procurement

expectations down by basis, in X%, with coming quarter. into sequential a the were line our On sales

to for increase we the sequential quarter, XXXX, we fourth mid-single in the the modest For expect decline a from full year in year. sales. digits sales expect And prior

Regardless dynamics, company's customers our support are of forward in network look of businesses. bandwidth and market. increase to whom coverage and of the to to data current applications support provider to continuing demand the high-speed the all we position the homes their service to remain working proliferation world, encouraged by We the broadband around

to for in benefit addition, array In confidence positioned well initiatives, very from particularly us we're government-funded giving broad America, the the of thereby future. North

$X.XX to sales assuming for meaningfully in worsen remains we market and quarter, also billion of exchange constant current And EPS uncertain. in the rates, assuming diluted an Now EPS to the no do of sales outlook. would expect compared prior decline fourth billion $X.XX environment This represent of and conditions question turning range the diluted the range to year. decline that X% our There's economic not $X.XX X% adjusted X% to $X.XX. to X% to a of and adjusted

to respectively. declines and guidance year quarter $X.XX. $XX.XXX of adjusted to adjusted year and fourth outlook X% for $XX.XXX Our EPS to expectation billion also $X.XX sales represents sales diluted of represents full year and full X%, X% full of an EPS This billion and

our current environment team dynamic market continue Amphenol's to to and opportunities grow I'm the challenges the of profitability. also to in the strong to management adapt position and in driving many very outstanding while confident ability

employees long-term want just for efforts our I I thank addition, world finally around the here quarter. outstanding XX,XXX this that of world remains take delivering In sustainable to committed team to Amphenol one in opportunity value. the around and the each reiterate our would third every And their entire like truly to to

happy And with questions. to be that, operator, we'd very any take

Daryanani [Operator Instructions] with Amit Evercore.

hoping maybe customers are macro industrial side is How different quarter talk especially distributor that, the do given little and on from you at the you think guess, for the much volatility? you hearing from about than OEMs kind talk Are trends December the weaker. you out about what the But really about you you're if can bit what do side, OEMs? just you the pan seeing the maybe in what in see a And ongoing are how your normalization? somewhat that Adam, inventory beyond channel? broadly I'm hearing you. I the of

very you presence of market, market. broad the business really thank I of industrial much. see is actually Yes, look we industrial And of very industrial we strongly. mean, very a our segments when every the beauty have Amit, think segment the did at I some we across those performing

in that I in the been be robust reported, highlighted of alternative one. down. saw equipment, a another pretty of widely pause cycle to and gas like those -- transit, growth But factory having little market some medical strong And heavy I segments and other investment then rail applications, we a energy, reasons. for of have think which which seems mass of saw very where bit variety a oil growth there's a were a in areas automation, the

-- modestly through who bit feels here started And that I see by have a out of distribution a be into large, impact it some little and And it quarter. little bit too our much the business was bigger the was it signs turns think now. quarter. inventory maybe the to coming right down. accelerated we the may But really And channel OEM they from that was the only impact --

continued certainly our fourth our in envisioned is look implied well side incorporates that guidance a by in that's guidance. as as modest in what's particular sequential some distributors our OEM well. adjustment we into out on the And as quarter And as the moderation our

How first long it quarter electronification and the industrial not market of will from now, what like XX we'll the a has But it's next sense days in of slowed at that looks would underlying broadly, predict. last? try electrification that to We good year. that hard to -- down. of give certainly I expect least the

to now. I across certain market. applications breadth new of of cap period like right things bit there's programs, a innovations, others are continue the semi new think, where our yes, an digestion there new we of enormous and But a array see industrial

And I think interconnect doubt of products, wherever revolutions to such offering built be those next we've going to antennas, in broad going Amphenol that a sensors, industrial, there's are there. that well represented be is no

view I of So a a this as bit pause.

macro an of a as market, areas understand which a factory what's industrial may between right some look the I little linkage automation And at that really more more of of industrial macro where happening could bit don't that. take proxy. there overly is that is view are that sort maybe now. certain German like I have

more we across that market the trend content don't see the is these more something of electronics, industrial driven of general all But areas being slowing down.

our And days give now. looks the we'll market pause this we But as that good really so today. about overall like year, feel industrial from XX to read try on get a into next we position despite in good certainly where

with next question Chris Our from UBS. is Snyder

big what better referenced, market. that to that in you the than is AI ask like sounds much expecting you search ago. part were wanted Adam. months It datacom IT on of the a It demand I X guys came

outlook sound could quite into today can to anything AI provide think remain any business like the ramping? of talk size year it next robust. business how So of is If around because we does about orders maybe sort there's us the that could you and you the about just

IT business? of on the year. back been just staying the -- that's non-AI feel that guess, really, any broader, Do part even of last you the the since through then kind going like datacom, is of half update I inventory kind And on on correction gotten of piece

on AI. it. support Appreciate I'll are some about working on years. And Chris. of excited just I much, mean, Look, put customers in for really been think this. where our very innovation many Thanks I we've No. the with many, we're products Yes. perspective historical ultimately that we AI

the all required shows of AI for We've something the of long a sudden, is we processing up This and that like ChatGPT been frantically are newspaper, type an like a uniquely products. customers working time start products system. not for developing with in on

fact system little architecture an each network-based ultimately a have a means that bit larger chips component those to talked ago, you but nature AI of that there's of the across have other. XX about we is the talk talk And each that to these this days high-power very a other where it system, to to just a allow fabric-like to uniquely all chips interconnect neural

centers for those that of a even of interconnect higher data levels not ensure that in types just latency significant AI the And power products higher all these electricity the both these dramatically efficiency -- and thereby higher power to mention that from into up speed, America, perspective, technology, consume to interconnect go requirements power chewing a data centers requirements of the example. require aren't

where I for challenging are to our fact many say that from from AI. It's These about and QX clearly talked product growth really, I of years. would QX investing all many, development exciting we've ramping. mean, in new I sequential been really opportunities the came

AI then recall, the talk opportunity growth the We the tell about you amount we in as just you here got the that for term quarter. had markets, every third long both really that it's necessarily that that. significant term driving second it's quarter. don't and follow-on we and subcomponent company the short that would second But that business of growth end sequential sequential out. in a we've quarter talked I already decent term, and we seen medium already don't very as in And we split of And little a X about

into have the of that these change And no that answer play things. And the know going are going anybody data term being What be investments data to heart, to doubt a we're put long be? with think interact lot that we dramatic the portion not to of all think able that of that. there's for enable not data I is going that are interface which networks knows it's AI are centers, and -- we next-generation these to AI of excited on don't But our lot really they're systems. that use impact a are amounts and to the the ways of to to just faint these really and I systems.

kind inventory fourth it for of to us, As we're -- that that relates that think feel correction non-AI and quarters, the about behind I as the we the X we look certainly tell correction. have would inventory that you largely nearly quarter, talked we I it's into

of Now could say that some non-AI of "cannibalizing" are AI investments. some you also the the investments

from I plenty think vein. people that there's of discussing

have we're the about from interconnect inventory need. fashion. And an investing much they in And the positions effective the to our in what standing think become figuring have that customers it's today. new in revolution do sure all an how I of there making front perspective, this healthier really But exciting and that of now AI right out line,

is Junk question Baird. with Luke next from The

in what namely a now done higher public couple company your public of in cost agreement difficulty be and to past of you've work acquire RFS in Adam, PCTEL. with to MTS, would I few a another some heavier the deals company degree years, consider

like deals in wondering you're and muscle, forward it mean has for terms funnel acquisition of you if going the the just will, integrating this, new public Just companies at? of especially much might the terms looking grown what that prospects how organization in

a beginning now which when we now go are XX Yes. groups. under our divisions, It's great XXXX then Luke, that initially reportable and organization the our And back, was it those really evolved question. thanks. divisions, global I the created operating mean, everybody phone I and if actually segments. of will X on XX recall global

run those an manager. just operating outstanding general group And groups of each is by

ago. a I XX came nearly I general headquarters manager, then myself in before manager general years think I here was my career, group a was to I

the businesses. platform ultimately, very extraordinarily broader deeply run of deeply the a now those the They're And And the we of general just the significant company. in group Amphenol. companies new involved and welcoming involved identification, And of managers these to in operations individuals. capable have they're assessment

is really I've many that and One I second unique of to our view company, ensure a and to company about second I so of be times scalability culture grow our them my impact in of can CEO is perpetuity. kind that the as its And priorities on culture, believe that in is to results. none as that value talked the view really this entrepreneurial its the we I of how twofold. really the culture protector

authorities a And than culture we quarter around I can It world full joined ago, managers identical. was their the of businesses in who sales, was have century but accountable. were less $X to the run billion general ultimately and held be

around in And support today, from the those company XX than to managers. we've the XXX organization X global of that. that's groups. And less why the when of have general XX gone we I today, and we've divisions joined Therefore, today, scaled

if do as long questions, deals get you we M&A grow, and And included done have representing right have acquisitions well, talk means as And both always well, well back, And growth look more both X/X bigger consistently we I and that you we either that's more or our And time that and used think those about will of of do, I've to ones. over acquisitions. term. things, arithmetically. said, bigger would the back because has you program our in always to acquisition roughly we go

the that far now of has one RFS is announced of companies acquired first signing our the ever has so requires a we've And -- included second since we beginning XXXX. our more. That have XX little public public company. now company that maybe

in XX anniversary XXth of But been of successful you the couple back a the from that GE, sensor acquisition. we'll when we And here celebrate which a years just even company fabulously acquisition. go has acquired months

acquired deal little FCI, entrepreneurial managers. FCI we align Amphenol call a a We to of the into which approach general work requires bit more

of has that you tell I'd the scale muscle with grown So commensurate the our company.

small, thing say came large, I look acquisitions, say, of has if X.Xx. all last you private, then quarter our And strong. whatever we to only public, ability with that remained mean, this And of out the leverage is very do balance sheet, I'll ability you may our at of

have We capital. of enormous availability

free doing cash the historical flow means all close is the quarter. levels. of organizational really acquisitions I together is the our have flow of sales there. with XX% financial of mean, means And are that We that all cash in the to

But thing. I'll one say

We will always stay disciplined.

We're not private that company. companies always buy out We're a and going principles. a bad by run going not true not our equity We're to are a is go going to company. bad to little holding become people. company We be just to

We're same I've for great an two, criteria we market that product we people, great going technology; number outstanding acquisitions three, one, Number for want look number number and many want to always for position. the years. about one; talked

We of got like acquisitions with as the continue we continue the Microwave to. XMA. PCTEL, And I'm M&A same go as to larger and disciplined with the forward Connor, of we'd sure a be time real level we at that same capabilities all X have very do of the Q we'll do we'll at those aperture and to to

Andrew with The next question Paribas. from is BNP Buscaglia

with automotive wanted the market, investors I the year-end. with into the into so yes, given to of So skittishness some size it. off Definitely just heading start quarter

you then X too. China, auto, On that? got strike. continue workers' And the ripple effect on guys in areas, you've weakness the North But to within just outperform. China What's America,

in of of peeking what dig outperformance concerns I'm the the from corner, you is, my when you you can just that do details into guys relative can customers around -- hearing market? some your have And maintain to of markets? the each around kind you're overall the So question

Yes. so a it's we so welcome call the Well, a here. often to get thanks again, you analyst, to new here. Andrew, and Not pleasure have

Look, the the company. one quarter environment, results in has an is been just the automotive really last contrary, market not exciting in a XX% by quite they've proud for our team so working of what market, automotive the driven easy I'm organically. that growing

as very nearly the at still units. earnings over been will automotive long-term in company, you last our if year, of calls CEO, performance was market that XX% my organically the grew by this to I way, mean, I the XXth my as essentially is recall well quarter you that CEO. And down a remember in these XX I've of by flat look And CEO. we first that years

we my $XXX one was first our X%, quarter. overall were and those, had automotive that sales of business an In that million

$XX to $X.X that's close billion, of So here million, sales. million. at $XX automotive we and is this XX% are market our quarter And

electrification electronic years, and And the a they out seen that X.X hands I the job vehicles, just over And and I over being decades. not think prominent enabling of recent of but most the a not but collection market new fabulous were think thing. only industry, of of you've revolutions in of which automotive just cars adopted those of done most the incumbents of systems the in we've share taking that's

And antennas. job high-technology I sensors interconnect I intersect these mean, being into there's opportunity us systems there's a that. with has to so team great done put each time and our those of And cars. many new think an for

is saw But on call. sense have headed. period. to that so Again, we XX our from going I a the into we everybody at no try the to time X.X now, is that outperformance already think least reason XXXX? said I delivering I this think we'll decent over that 'XX really will where of to days How this to go continue of decades during not maintain been say we beginning consistently give

pleased team proud the applications in of new with technologies I'm car. the array for really our broad just these I'm really working And exciting all of automotive. in

from is America. Bank Mohan question next of The Wamsi with

Craig, could guide, prior talk out and next the the of on you margins midpoint and over we profit, quarter. million the At operating absorbing X wondering margins deals as of of takes puts also and of some Adam the deals. impact if operating revenue new M&A decremental from you'd was you're almost look X about of absorbing I or be $XX

So when clearly a than reflecting much we look better at your it's that. guide, outlook

as you the same enabling about so that? the have as we still business margins are to Or made what some guide, creating of sort changes decremental around think B, that historical? that's you other the assumption And that do in the lower drivers is decremental operating are of resilient, which margins? A, So, was

Yes. Appreciate Yes. the Thanks, Wamsi. question.

term. a have the in think in quarter, no -- the there's look wouldn't if how you we've things a third talk decremental changes long too, few think we were regards here about done and certainly that certainly quarter certainly in I job I to about and say 'XX profitability margins But happened and of. a in our great minute, in at XXXX I'll fourth the

order quarter in pretty recall, up the last work pricing we benefiting a did -- the benefiting we're a about work. last last and from fourth that did we we're certainly bit as to much But here. of talked pricing third year, year bit from catch particular we majority And by -- 'XX. bit a the inflationary quarter you did the kind that no we the one, of year the into did environment we of with Number

from between back kind to we be price We were to where and pretty perspective. of balance wanted a to be much expected cost and

a still So on that. we're from basis certainly benefiting year-over-year

those just certainly, of executed some just datacom we've kind biggest addition, of certainly of that really IT declines and We great we offsetting of markets think seen just very In great I a from done have of being reduction well, some certainly execution. from the markets, communications job them. the

bigger that at we But some would decremental out the the are those And of that margins -- take well if impacts, you actually X really it. kind I'd of target. and -- acquisitions the are things year-over-year it's the look margins those we are X typically under of you say impacting actually

downs think, margin to but have had, and mix we've execution to the ups on we that. is had mix of XX.X% quite mean, terms not here a of perspective, margin not in market the from given on record, challenges from certainly a in the a growth quarter the market that I of we've ups third because manage the really able the downs, has part but be range the significant that a team's and really it of mix great don't from been, a market, growth the I just

to So the would time. And we that acquisitions of our have fourth the fourth the quarter, and are clearly do to strong as these be get margins we we're levels working margin that up quarter. implied have to into to offsetting some over I think that that look the guidance company lower-than-average forward average continue

But no proud we're it. doubt, really of

levels, kind I be margins of us. do at, proud I decremental continue And margins to we're benefited haven't But this, the And think these the XX%. are of I we're at I think the these mentioned, a has we from going few think, better. changed should longer-term to to it. this certainly, factors and revenue year, given really strive

question from next Our is JPMorgan. Samik with Chatterjee

and guess Adam, are and on there end diversified of markets more you the different terms where fairly level, a many I takes broader business, puts in have a are.

are a out, to But here. lower as orders still Some pointed that level. some are year-over-year, you managed grow recovering, at dynamic you despite

reported translate be guide the I'm line we the order of to order wondering above in into should translating revenue have like growth how more but with you revenue numbers thinking into growth last seems the for the what curious just the been your More in near term? that because about quarters auto. couple for number,

since should is growth already orders higher opportunity the are about where -- how to we return So revenue to year-over-year? think the

just whatever market, -- auto -- overall to unit want very it, that you much, the and look, you Yes. mean, volume to whatever we've you Samik. consistently talk the I think call markets we I Thank auto about. about outperforming want talked our been or

perspective quarter translate than that company, broadly talk time to last that, eventually orders we think X this our the higher in orders that on growth. the was about a in year, year-over-year when yes, guess year-over-year and we in I I a year-over-year basis more from were And should quarters. first

for guide for and first in we're XX guided at going the certain now. the we'll And way. that comes I quarter time from for it fighting for -- think we've when next same a to quarter that, to days keep

and you having next be we can love be that We growth, last to be our down don't it either. down is like imagine And and having very don't returning quarter. quarter focused it team on having down don't like we it quarter, this

the that's our that. of down the company you that end various And diversification substantially we And of about. for whole we've have already. reasons of because talked are there's which though, others, When the beauties fighting team a one the around us markets we markets, have growing across is Amphenol that are which end look of

this minus. that pretty would quarter think when to our IT datacom, guidance, about, was so which it I for like XX% so close down in then be I last or quarter, example, XX%, XX%, was prior down you think the or think And plus year, something quite current significantly and

company. growth of for trajectory And would, staying sure, the so I that that think, that's the to we sign, to returning forward across a look

Delaney The next Mark Sachs. with question is Goldman from

other of broadband Do needed have like industrial, Open the mobile catalyst I RAN, on combination the one to for think or that inventory end networks. wireless XG some of you reductions? with reaccelerate enough along XG can business of those perhaps to opportunities be and and

think X invested day, come I Look, XG. we still haven't [indiscernible] in Yes. but will totally even

networks long works. now mobile tends I've market XG, think decent of enough and how sense and go, of enough market that XG, long when working seen XG kind a the in the I So about XG, I wireless been that to and how I've XG, around have

that there's figure make. that the of generation. they it an new happens and then of the initial is economics out of operators investments these Generally, kind digest because are investment what out And on of And a if and that. figure they the out monetize to can't how incremental that -- the there's I to think to going how figure challenge XG, investment, monetize work lot significant

But is question. that is market. for tough a wireless the I there's a period think yes, And this separate --

business U.S., at big region XX% least. last releases days organic equipment which even in down over an to the here several on more our the in manufacturers as this the operators down in cases range, XX%. of kind basis by and down of was XX% is the certainly, in the the the capital all all spending it And some seen You've

certainly a not XX%, know it's Is XX%? -- XX%. that it XX%, -- it in not we're And But new is. think the proportion very XG. there's it's period that Is number what I but And new this of has It's of technology, modest digestion XX%. build-out XX%? become still of truly the I certainly that don't

people we're make the to out now third money mean, I And to think innings just the more inning kind stretch this in I right system. still, a of of figure from XG. how the are on early believe, taking I

unbelievable being But think about AI, about it's like applications think if you being see to broadly, how video, go, you be and bandwidth-hungry it's continue data all where think going when is consumed. to everywhere I the on and consumed data extraordinarily actually accelerate about about you think more mean, what's used in proliferate,

I gamer, in and not And all connected like not these can playing at be mean, name can strange are all be a that. and play that things game with Well, things really creatures that I watch a [indiscernible] that car, -- I be he weird strange his home. my is my now to kids this who around, the and connected moving can he like he crazy things like computer they to he things used and only a to on these used crazy, son desktop. you and with. like cable, and can to mean, do gaming

have see mobility to we a the be position. there's data this. you no next-generation the a that going for company's to when so of term, and for acceleration our about doubt drive do long ways continued think people look here, Internet, we very And I mobile unique And when position at

directly year, the one us systems position think OEMs. who operators And unique we've in earlier that about I puts really made acquisitions a with as position. well driving us of operate as that directly put we made this in with acquisition go a capabilities. the to only their RFS companies that very We're strong next-generation of the And other the as they

or the doubt a going term, year. of no long to be pause in is networks that market and my a tough quarter a mobile mind it's yes, But great. And X

The with Securities. is from next Stein question Will Truist

you part Adam, good wondering on the comment can and test outlook. if Congrats I'm on strong and the results of PCTEL. measurement

case? did You time, acquisition, you I portfolio. which equipment at was into measurement this the the if with it, it not this the business fit prior had in bundled said there where wonder in fits and in, situation test a

many very I much. -- thing antenna years as PCTEL say. a acquisition. Well, broad small a And public we one to certainly very Yes. too that's company. a successful for known look, really thanks probably would little we're And company, the them PCTEL, be we've excited and about And really many,

have closure. about a it And signed test and company, to business. excited just that its And bring But really given measurement they say this forward small the wouldn't and yes, I deal. we about probably we've look to we're working to more it,

Steven from with Fox The question is next Fox Advisors.

was during I more can a [indiscernible]. the you the little what have bit did that wondering On like if can't imagine to you Adam, else deals I already on get I position you such M&A smaller a in RF, color RF. great it acquire. need seems,

Can And attention then technology those secondly, getting on is talk busbar sleepy you why that's deals? did a busbars, about which you like more lately. seems it

I mean, Thanks, scale They're at Yes. Steve. now. for question. the are a really companies. XMA smaller appreciate and look, fabulous certainly Q I Yes. Microwave

that imagine have them high the for we long expectations over can term. You

companies correctly sort -- products. us we companies really customers, little capabilities offer position these little conditioning we these RF stated, in broadest the extra we've as us bit bring bring gone technology. the that bit you bit optics, And into little of active in interconnect have a interconnect a RF a our just in more And can to RF

my that's customers a really aero, part I we that for, our see and whole so especially and was is making ago in in of our years offering in one time. aero were think of been important an that's XX the mean, manager, exciting. of general at And or market something, the I really I remember we career. the Busbar mil our when gosh, as mil to a almost area I first interconnect busbar that being we've

industry but IT. in involved busbars in in have been we've telecom busbars And in great We've the made involved acquisitions. been

of into ago, years us acquisition the AUXEL the which recall brought market. industrial You'll more several

that the into automotive move have car. of a the are doubt today energy like the particular, the offering outstanding while around that that really there's in is brings we high-voltage really about EVs. an busbar is we used systems interconnect market, in products Connor And that what to are to used no solidly complement around market, also And busbar us the in EVs, Connor

fabulous We're a the is business, job a continued have just does making expansion reach we every Connor technologies it's have, find sure wonderful And favor. markets of I puzzle. a that And there. of those think of we And where to that the them one interconnect core end them. the that piece of Connor excited really our have in

with is Stifel. Matt from Sheerin next Our question

a Yes. on device little can business. mobile comment Adam, further I'm hoping you

Do smartphones chain you of some suppliers of in in called players things? your some there visibility continued and You and we're relative that PCs are hearing and things of on see as part out and from bottoming And the wearables, notebooks. but other strength weakness get have in that terms starting terms you the other of some any Taiwan of their in next into are to there. refresh cycle recovery customers year signs and supply

Yes. Thanks very much, Matt.

a the stated has tablets there. which done our job a there's good the particular, devices, case fabulous a we here, team and the had correctly in laptops digestion in you But and pretty other period in doubt devices like year the been actually think and like. I is smartphones, no

home there of because devices a I impacted sent the of pandemic either and And devices what massive at normal to just do the a we've or buying of X interact, over to to was they kind was these to disruption digestion seen the everybody get of study unusual that. a think kind got that. those patterns from I or day. surge want consumption end And they there's of of the years, to the devices however had last think an when And there work in still new surge

it next What out. try ahead have get my skis certainly wrong this generally time going I'm for look, I hard a days next year. do I guiding I is and to I mean, wouldn't year? it market and when to of XX be that, guide

cost at a I expect them probably course, I [indiscernible]. think to sure, here get even couple know conscious my of would new normalize. normalize, for I devices, a -- whether I would pretty that mean, demand kind starting longer getting surge devices some for than own I We're a I'm and But would at would point, run digestion, hope Amphenol, of about one. it I'm that need of little my them of but that devices, those to you

question last Giordano Cowen. from Our comes Joe with

Michael Joe. is for on This

So recently, delays. equipment or like EV there's been a noteworthy like semi-plant few construction

So of influence guidance, just like projects decision-making these curious cadence or internal how on whatnot? the

really individual the and Yes. have all a overall on an papers, I mean, a And look, I think business. individual wouldn't doesn't may plant announcement our same accelerated read think or impact given we be at delayed that time. dramatic I

us I "Oh, look, is everybody cycle say the about, they capital will if one I think talk particular, of except area, have market, here, ever have X for in which this the I'd semiconductor again." year asked ago, said, which sitting But everybody equipment ever a you did never maybe a and would

equipment. cycle in semi cap a bit here of are we enough there sure year, and And is this a

have choice position there. ourselves position of We We've an really supplier to a a long strong market. that done interconnect job really to term as great

of capital did bit in larger And sales but the of of we related the any say clearly, that our of I of spending equipment moderation of that's industrial don't market. because a I part think cap is individual semi to, think, in I I'd manufacturers. as the mentioned our some that semiconductor earlier see pause more a a plant,

XX a EV had strong performance to our we'll specific like But think looks year. market built. next still point necessarily we not I automotive factories We any being really pretty now, to wouldn't strong. that in related, related EV quarter. last days that what market being from again, things as I see built or And see

behalf our so once on We today. I time world, to think and you all all and the and Thanks your safe. that's XX,XXX best, question. our operator, just again, everybody Craig and wish I wish of like much. Well, your whole And that families stay thank we'd you the last around team for

Thank you.

attending conference, nice you a have day. Thank for today's and