Allegro MicroSystems (ALGM) 9 May 242024 Q4 Earnings call transcript

Good morning, and welcome to the Allegro MicroSystems' Fourth Quarter and Fiscal 2024 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to our first speaker for today, Jalene Hoover, Vice President of Investor Relations and Corporate Communications. Please go ahead.

Thank you, Crystal. you Quarter us Results. and thank Allegro's to and Fourth Fiscal Full morning, for today joining discuss Good Year XXXX joined highlights President Nargolwala; Allegro's and share our today Executive quarter performance I'm Vineet XXXX first Officer, outlook. quarterly and financial who our of Chief provide our business, review will by personal Derek Officer, Financial in Chief is not attendance matter. today Allegro's D'Antilio, due to a

remarks our will prepared with the session. follow We Q&A

are financial non-GAAP discussed prepared and include non-GAAP financial remarks most to measures GAAP The or non-GAAP for that reconciliation directly are Our a earnings release the these replace today Relations is are www.allegromicro.com. financial certain our financial measures intended included section page the results. not being substitute measures. to of comparable is also shortly. financial earnings be our A our in IR also Presentations and website in and of be This available which our will at page a the Events replay call measures release, of webcast, Investor available in GAAP

the periodic future on projections statements materially year the statements the as our or statements caution in Important could our that based and such factors events quarter we SEC, and regarding Commission. release and projections. can could are projections and and the future of fourth subject differ other earnings actual detail the business, will make with our cause that recent this from risks results of Exchange cause are actual that for and Securities to including During and to performance our described most We wish fiscal in today's events to factors forward-looking of or are differ filings company. to results affect a conference from assumptions XXXX date, in forward-looking as current financial call, course result, uncertainties that

other may update actual events forward-looking changes to the no statements change, or Our forward-looking company law. assumptions results, except required occur estimates and as assumes reflect to or by statements that other may obligation to

President and now I will turn Vineet? Nargolwala. the Vineet CEO, to Allegro's over call

all, joining you year for you, and fourth XXXX morning and good Thank year Jalene, quarter and fiscal Conference Call. full thank our

to pleased the delivered our environment. puts guidance innovates hard testament of revenue a customers to our always end despite range This above and high work macro of and EPS and challenging is are that We quarter Allegro have a fourth first with purpose. the team dedication

e-Mobility we delivered proud customers above-market full growth. For fiscal sustained X% have growing growth. progress XXXX, the EPS the year revenue company with and in and the of serving made we long-term has for company the I'm X% positioning delivered our growth XX% performance and

electrification year delivered increasing than design drive for record Allegro's level above fiscal billion, the accounted sales as billion. wins well a than E-Mobility, and wins half of ADAS a design growth continues our the higher $X which market more annual vehicles of $X more adoption of includes as of XXXX. in of record and than first, more features company We to

products new kicked as a of standpoint, and We're extended XX ongoing Crocus. differentiated seeing to excitement We applications. highest From emphasizing Automotive commitment off a across in XtremeSense innovation. of a leadership number introduced the Not great continuous for sensitivity about sensing to also product our products we record over customers acquisition the magnetic Industrial world's TMR products, into expanding market, for from the with are new monitoring our biomedical leading our highly the we our accuracy, glucose only power TMR applications, that presents fanning and excited OEMs. such are medical with technology and lowest we greatest but the demanding most

the our portfolio supply investments development innovation magnetic operational decision review our to Through of quality and experiences also investment delivery customers. continued expanding in chain strides significant resilience continuous for our and made and resources Photonics our improving business prioritize leading made to have seize and capabilities, our sensing portfolios. on We building process, in and we power

In much proud be summary, team and was for celebrate successful fiscal to Allegro. a of year XXXX with year

a xEV momentum battery are are production there's whether is global of XX% and at that discussion Now slowing. lot on facts growing been XX%. of only vehicles The electric

both While for hybrids furiously equally new good platforms every XX%. production that and Allegro much higher strong of content are is than global is The on at models ICE XX% and that working market. news OEM xEV bring And to our growing to on vehicles. is

So in and Allegro platforms invest wins, no matter OEMs choose grow. to which

continued too. OEMs are important, Chinese and is of we and have and strong OEMs Chinese I with share ago, our sales weeks why for support And their Allegro's with with global half total I'm nearly few very is in doubled have compelling down China OEMs the This auto unique with geographical presence win products. important expanding on the and why increasingly and XEVs now China-for-China we is Tier continuing manufacturing making represent value with Chinese our a initiative. China the lens to and progress economical are was proposition. Xs we pleased

great And OEMs outside with of we as China that well are of shaping future global are progress e-Mobility. the making

the a product broad sensing our Our markets customers. applications. on focused win the strategy, remains of resonance our continuing Allegro executing solutions in magnetic serving to and customers are power target range finding and team with great And in

let seeing me some Now time markets. in discussing our spend we're end what

we in inventory channel, in a be and Our to the quarter inventory sales returning ongoing before revenue rebalancing comprehends trough growth first in Automotive outlook what resulting quarter expect to digestion thereafter. sequential

reduce business to as normalized possible. as and manage to quickly customers levels with inventory partners closely working orders, to are We return and channel

providing we inventory. clear to pricing instances, to are help the specific support channel In

expected later. largely recovery line in market the stable muted xEVs. productions Our of expected have taken growth renewals end with historical a patterns. be macro place or markets pricing generally the with in with and At Industrial in contract double-digit are OEM with to auto demand are expected half second year to level, lower calendar broader remain

expansion really driver high-speed TMR, new product a innovative our new current about Silicon-Carbide motor Against be a include portfolio we industrial and sensors of risk new TMR later slew and are this a set for vehicles quarter, month, portfolio this excited we in of center of energy. transition sensors, portfolio XXXX. into this launching including as will And position fiscal launches with high-voltage intelligent low-power drivers of to broader These data highly anticipated the applications. a backdrop, gate our in clean well of medical as architecture, XX-volt applications like products support

and strategic term, the record invest level we products maximize we near-term over navigate our grow financial in above reinforce confidence to our model. sales, And with inventory to new R&D ability These areas. and target the growth market win focus design in continue to long to in consistent pipeline while corrections mid-

will I $XXX EBITDA sales. was were XX.X% review adjusted QX of margin results. the million. Gross XX.X%. was financial and XX.X% now Operating was Sales income

share. X% As X% sequentially $X.XX of per QX declined a representing year-over-year, were QX and to were million, sales Sales down sales. sequentially and earnings XX% X% year-over-year. result, customers XX% up by $XXX Automotive

sequentially XX% and X% perspective, X% product a X% sales, power From magnetic sales. E-mobility by million, sales were of sequentially declined X% were of our declining $XX $XX up X% million, Sales sales sensor year-over-year. $XXX were year-over-year. sequentially year-over-year. year-over-year. auto million, XX% XX% XX% applications, declining and XX% fourth includes down products consumer and which Other and Industrial sequentially $XX sales were and million, were sequentially quarter declining

decrease and XX.X% inclusive were a and sales the sales balanced down The to were XX% Asia, XX.X% was expenses effective of full rate tax geography in rest by effective a Europe year XX% in rate or of the credits. The QX China, from Operating Japan, as year XX% result of a in XX.X% a expenses Operating was with were of XX% ago, Fourth of margin sequentially, Americas. Sales R&D quarter of well primarily quarter of tax and million, of $XX in quarter X.X%, was Crocus. sales million X% again XX% was the for and XX% a tax for year the compared R&D XX% SG&A XX%. full of in of $X sales. ago.

million and million was $X.XX share net count was diluted quarter income diluted fourth per XXX.X The or share. shares, $XX

was record per was XX%, Turning a led earnings year to by sales. Industrial a year-over-year share a and Operating by by increased sales. were year-over-year margin record XX.X%. share. of Sales was increase XXXX $X.XX customers Automotive to X% other with results. declined increasing Fiscal sales XX.X% XX% XX.X% year. Gross XX% XXXX another e-Mobility and EBITDA by increased Adjusted in X% billion. to during the full was sales strong Allegro $X.XX per sales margin year for

Magnetic $XXX X% power product increased to sales. $XXX total million. products sales. on to or of by Moving year-over-year million by to X% year-over-year sales Sales of our XX% increased Sensor

was QX ended from We capital and in Cash Moving million $XX operations to of fourth the flow. balance the $XXX sheet cash were expenditures quarter million. $XX million. flow cash and with

a of in 'XX. payment made $XX tax we Crocus' to recover quarter, tax credits the million to which expect U.S. IP, we fiscal through largely During repatriate

$XX this QX of free sales. was or Excluding was $XX operating million payment, flow million cash cash XX% and flow

working days XX of QX million. expenditures tax were another From by days in XXX days outstanding inventory $XXX QX. million Full year the days day sales or days sequentially capital cash Capital were flow and compared cash free in Crocus-related operations XXX to and to was XX declined $X Inventory excluding QX. a compared from million was flow was payment. million $XXX $XX million perspective, $XX

to I'll turn outlook. our QX Finally,

We double-digit customer levels. reduce rates be our the and million growth their in with expect anticipate we first sequential backlog, customers sales going $XXX as work range of low Based upon into to to QX. million quarter to we $XXX demand, fill inventory

of product price be gross QX distribution. XX%, a underutilization, mix which expect reflects We in primarily combination XX% adjustments and between margin to and capacity

million diluted expenses approximately to and and XXX be million count million. between operating XX% rate share project shares. We to expect tax $XX our We non-GAAP be to our $XX be

approximately voluntary made our million loan, also a we to our $X April, $XX projected reduce $XXX interest annual which by term In million is on expense million. payment

As taking or per during a actions which the over XX% contributed the 'XX for the that result, the growth, first second expect to to expenses our operating decline in EPS organic year year. compared of we been half Recall between have be $XX and $X.XX fiscal of reposition long-term company $X.XX we to million approximately past share. half non-GAAP

proud our of like inventory dynamics team I So our would entire for while very 'XX optimized thank fiscal record dedication what over we've and in this year and customers. we the results. the ready performance serving customers serve grow. an navigate am financial to to entered terrific achieved delivering to past I their footprint Allegro with and

I'll Jalene? back to call the now for turn Jalene questions.

Vineet. prepared you, management's remarks. This Thank concludes

share you. questions, with line the I'd we Before up for our open like call first to your quarter conference fiscal

the at XXnd Cowen's TMT Conference TD XX. New New York Conference JW June and May Essex InterContinental on attending House, the Marriott on XXXX are Mizuho's at We Annual York XX Barclay; Technology

open We will call up instructions. your Operator, for the now Q&A questions. please review

of first Instructions] the Securities. question comes [Operator Our Gary from Wells of Mobley Fargo line

true with are And about at QX, $XXX sequential who's of of in maybe the is can presence is low revenue question And call still missed. which the representative percent presumably a my Or Derek, the is this And I you that more, end puts double-digit after the on or number outlook us in end the that just is million revenue continued follow-up. shipping rate Thoughts growth demand? for recovery maybe sense of give revenue second demand? quarter? have under a

We've return is to question, coming end into believe an to rebalancing to comments kind to your as about and enter be normal We of it's do expect Vineet. to one out the the patterns. well. this first for Thanks thanks your going Automotive inventory was We ordering it. mode. last market start for talked Gary,

it mid-double the coming is the to is be getting quarter it. low in expect think right to sequential to to -- we out order going of And I to mid I us. way about this growth there QX. instrumental And think for return think digit

Okay.

temporary of forward? of to And accustomed some grow the Maybe little to with indicative margin factors to customers pricing be there. was channel. out us are bit hoping level situation? you support" clear Is I details going trend respect to Now comfort some that the going and I "Price a distributors that of some pricing that additional just to, concerning, can Is that a going something pressuring admitted gross it's the give you to? especially to guess, flesh right,

really okay? distributors. I Yes, question. Gary, pricing it's very question, gross points look as would QX at great transition really it's certain fair basis support and is on margin, with mix, our characterize a the only QX to to and temporary a about you due and XXX doesn't labor price is targeted When our so quarter. underutilization, of XXX and the a The say, in taken is I direct prudent vast that to obviously, basis cost first obviously, there's forth. away. here around actions go and so majority, the But -- about would points amount on which temporary fixed certain We've

And again, so in the our inventory problem And that's of distribution believe we really it's where largely representative resides. that's been that. of bulk channel,

next Caso Our Chris of of question from Wolfe comes the line Research.

visibility if more sequential here, channel you little kind specifically, what then more and the And pricing of of resumption indication the give there, September of as you color driven how a similar compared And quarter was much function is decline provided wonder pricing. pricing? into is unit could in coming for or September to orders? of with of more the maybe the that back discussed reducing presumably units, guidance on I a in the in terms by inventory on

thanks Chris, the for question.

actually earlier, of I pricing is smallest the As transition. part the mentioned

we and and to and to increased as moderate, inventory to So we back this well. get margins should get And come back come in going starts back utilization start going our here to that get so see growth the as volume out QX, that right? digestion to it's as into is we really QX, expect of sequential think we mode

the comments Okay. respect been kind here. of to documented the With in slowdown has hybrid, EV on well versus EV

you hybrid, some some got shift content transition that transition extent around. you're that is to to I OEMs the now of heard a of what You how effect? attributed probably you've imagine is hybrid see the seeing kind we to some slowdown it EV? be have of of pointed there's hybrid have but that an that accelerated of there. that And programs, do in to as -- out But to equal immediate got number speak you as slowdown the OEMs the Can

Yes, Chris.

U.S., global balance, it's were region. both And by the new And Automotive splits purview great how you Automotive in out production see of And we really but of the would design in sort a I the look indicative have of EV it's on question. really also that a we you of So in programs. really when slowdown market. our don't tell geographical EV at -- the outside any

a EVs question regarding hybrids. Your shift between and

in of same. cases, we exactly tell you would largely where we hybrids up in just they a that very -- products lot ship they components our because and I other multiple the broad portfolio on are It's that a than few most only have the a know the few customers end where a regions. into of brands market, and of matter a customers multiple EVs don't have under

out So end a hard very it's figure where might exactly part up. to

be unit that's an the little from a battery positive the benefits we well It's vehicle. see we rating as traditional platform hybrid a of both that a But electric might as powertrain. that, net same think pure just powertrain for EV And ICE a power content Allegro, actually the in as different.

that, the to our be really different. difference to might any ship content. a a rating than don't on in But So EV see other hybrid. we little or the We parts

the inventory making is when sure numbers comes of course, got pulling is Of right obviously our make that there. right are you right that question. right that getting strings for to logistics Xs it considerations and part right the answers our Tier the sure Hopefully, part, customers to actual our the the customer there's to And your the some and belief program.

from Buchalter Our TD next of question of line comes the Cowen. Joshua

June, expected. with -- Street things outlook and was below the the a Maybe expecting, it hope you versus least versus as and this me at changed in what but quarter all flagged about quarter, I had were guidance, the minutes his couple gets at down just the could all that's June is last if And speaking think weaker and guess you worse I previously what to family, originally talking Street of Street. well? I you least expecting from time, you what driving Derek wrong expected guys you is than spend what echo and the Let that at that materially versus thoughts okay. you of certainly worsened I seems look the like,

the Josh, in that more last quarter, was we as better the the ended rebalance a thoughts we The inventory QX being up Automotive seeing and -- said for question, well. an than thanks enter our as expected. reflected bit in started It guidance. into little

there between our to we Our to the and parts an Xs, Tier as so was noticed and opportunity, some customers and we push-pull QX, on. that of is talk different this their related

year, quarter, a pull We versus there's actually don't and -- ordering the for on push between each plan between part. another for pulling right? we with one Remember, customers quarters, of and lot part plan

back so sure the sequential is us happens as a with and what on the One is in versus perhaps seeing I all get quickly to at And what our we're that different okay? call. the result reflection quarters the last last as pull we down signaled that normal is And between growth. earnings levels come the orders, and so a the push X quarter levels so And can to CMs things. -- working that's possible, of very the QX customers we in think, actively second, Xs Tier had to in make actually normal of really inventory

to was quarter. then metrics guess the worse it Anything materially double-digit help I wrong, book-to-bill, looks better the of us that sequential backlog, sort this guess, I unless like read things return auto to to give any, actually September bookings, than there? follow-up, in legacy it understand And quarter? us, whether like my can I'm growth e-Mobility parts the doing you with

Josh. Thanks, Yes.

quarters. push at full really the the e-Mobility look artifact when And of tell an grew we We between full that year XXXX, normal happens would look I year. So full XX%. that it's you at

our XX% XX%. almost basis, year-over-year really overall Automotive, So on in a grew growth powering which

So and about half no we we our from Automotive. in continue performance complaints momentum e-Mobility, 'XX and e-Mobility over our design wins really came have see fiscal in great to

executing momentum, job out the of marketplace. mid- whatever team us aligned long out-innovating a to new of So a give And and needs really confidence great in to wins the there really lot customer the on continues is great do in products, design the well term. with

e-Mobility market. So I'm the and our strategy in outperform to worried at ability not really all our about execute

later. When we QX, I us customers it's to QX the and I And before, return going go function growth mode. tell. at mentioned really our early to order going could look second too the to of want a is be will to at from really, to is ship the think levels We into in stable going be to the our by lead half before, still we Industrial, come to be within our what QX rebalance e-Mobility expect of it, lower think Recoveries out sequential to But the I first industry inventory it's believe it to way. to was QX. as to that, Auto potentially driven said growth sequential return one now. them. last to it's And auto. We

question the of next Needham Bolton Company. Our of line Quinn & comes from

Or clear And guess, Derek going Vineet, follow-up question. new an shipped the channel? One price prices got you've X channel? and the you my offer taking into is price on his a on this wishes adjustment lower for onetime shipped things you're go-forward sort the you onetime best will in basis be I've that -- channel. say a adjustment products I questions Can you. of already a on to the I adjustments then where to family. to prices on take to

onetime out. question, It the that the and thoughts. the kind for you phenomenon is pointed exactly thanks also Quinn,

particularly Asia, as we've been So support we that to we our work recognize distributors, the with targeted. they needed clear in very and inventory,

and you And The 'XX. our we fashion the so are I new given new really distributors XX products that up fleet market holding onetime we've price clear are products over higher targeted would very our fiscal launched those in support in inventory. than help ASPs the to tell a on well. to

pricing the So we an be phenomenon phenomenon. don't I highlighted here to ongoing that expect

September you're to beyond Understood. double-digit sort the the know just And sequential return getting that of -- then about kind I not of low implies talked revenue where but first you low you've growth. that past out quarters. the Obviously, below quarters? quarter, quarter for growth be multiple expect rate several run still rate that the at Do to would for been well the running double-digit continue you for

going we of to couple to in good quarterly Yes, We feel operating do, bit what really quarters to would might getting normal us fiscal call, get a be take climb but run Quinn, right? about rates. So year, of our, think back I a it's this a our there I it there.

thinking sequentially, low So the is of it in about to way I rates, right mid-double-digit think it. think about terms to growth

from Our of the of Mizuho. comes next Vijay Rakesh question line

for like would [indiscernible] I to Derek as well. echo

Just before? missed a question on disti inventory you seen probably primarily like was there that, you the for the would inventory? guide. have Wondering missed you that And drive-down was something that all the

sure about not first question miss. Vijay, in of terms a I'm So your

level some correction. of expected We inventory

Let's to an to back X the the rebalance to earnings weeks that X we're of We XX weeks mode. about enter price OEMs crisis, we getting supply have Xs inventory inventory. Typically, incentives into CMs XX asked to actually said call. seeing hold what and Tier by come the said last now some auto support been inventory, to Through and hold they inventory. of we're hold in and

as the rates the went interest abated, crises carrying stayed and and started supply bite. went of away, inventory those higher that the higher, incentives to As cost

And CMs to inventory pare Tier Xs started weeks. the back X levels to X so to and the their

your a than think it it is question, can to had what now sooner to thought back creates of happening And where positive what little But so we originally growth. start about sharper a I we it. does Vijay? get clearing from second happen sequential that It's event, we expected was a to over couple a And quarters. -- standpoint

Yes.

another I question. to add I mean, think more is -- I just want on it

I the mentioned talk is and at that pain company we Auto, you'd disti -- issue where disti Asia primarily concern that a a very inventory? you obviously, mean, Asia and Automotive -- Is there that, it this look broad customer was. a to If particular inventory, any or the can

Yes.

So And this know that Industrial rates, probably of channel. broadly back-up the our are also correction, Industrial shaped have Industrial and Vijay. to is most as of continues more our compounded actually inventory in long sort U-shaped lower some -- be to out interest or sensitive it's we peers demand. by in which called a Industrial OEMs inventory

And so we think there's actually lower demand as well.

So the Asia we've to distributors geographic to think So for way connection. it, really been right? of support of giving manufacturing happens electronics price Industrial our that's in and our sort where customers, most about that's the

up the our are Within the at hold to first-level keeps little it's quality direct of mostly night. service something us In inventory mainly and to Tier is model. direct not OEM OEMs used Asia, Japan and that inventory there's bit they they there, but paper little that Automotive, support. because do there, bit to China a of X There's a in we or

Got last but 'XX, would e-Mobility fiscal see any versus that? it. given but talked I full XX% you've on think not yet, guide the you've and how around you about And XX% year Automation, I the thoughts know that question, year-on-year I think,

guiding the we're full for Yes, Vijay, not year.

mid probably sort low of is best going to it's of think quarters be in go the what about the from talk now next we to to way we couple QX. double-digit for trend sequential -- think I And see terms is sequentially going that of growth. QX can we to

the [Operator Mark of Instructions] line question Our Evercore from Lipacis next ISI. comes of

the you up does like how imagine And just QX. back becomes be ramping I to again ramp Is take rates and expectation? get still quickly back charges a that had operationally. work guess I kind a then way a are, of are up residual loadings and then Is you reasonable as in utilization you do whatever then And normalized how Vineet, shutdown the rates this follow-up. back underutilization to there may utilization then or low? down I question fab

the for Sure, Mark, thanks question.

we Mark, own not So fab, a don't anymore.

Philippines. underutilization our operations in really, happening test and the is So the in operations assembly

XX% a As Philippines in reminder, of only do we our assembly of factory XXX% the do and we in our test. our

And it's I the there. say it's job managing so And that whether team furloughs whether would costs, has done short-term a is and underutilization of happening really so terrific on. shifts, the our

we very retain sequential so is have to the we here very seen we support the quickly. snap to to we auto as come that ability ability On back a going basis, and have back And quickly believe that.

we've build continuing [indiscernible], the addition, gives In been us in which bank turn to quickly. pretty to ability

it so to the respond have customers. we And lead time internally that to our reduces

a weeks environment, a the and might if that a follow-up, for up overbuild everybody it's like helpful. And lowers classic times and an of shooting I to be and they're you then setting process and That's demand tightness lower X it you again. utilization channel, have in X normal a Separately, is have then an may. there's you overcorrection to start lot in And when said that X now by cycle. you overbuild, followed you weeks then restock sounds to

does Is my is X dropped that you So Like this to X I to is, on do kind Is that -- set how -- situation? feel weeks? you manage that that up? operationally us question guess what your for do of Allegro?

Yes.

Mark, frankly, most get to peers it's that in their around of arms really great would tell trying industry are So you I the a question. my And this.

to weeks. comfortable for a very a them to hold is X mode. been Xs operating and way normal little the The Tier us so little CMs think like OEMs at believe especially bit would it X that's the our this, to they That's their the about are customers, more. auto cook, So under

over the back we balance here into So quarters. get I think couple next of

because and that channel, than in to little bit would little distribution largely Asia is lower XX definitely overordering, to that which sells know bit XX-week And and and a range. in of we the the a very I of auto in higher demand weeks. consumer Consumer XX of XX- industrial Our comfortable Industrial is and say, Industrial

and year back some trend. flowing we the they green through a make so needs inventory seeing really, we true that again. pattern. start to a to We're for a demand the don't But couple honest, come of will POS, demand POS in that months are start to to in be And up into form -- pick our shoots, think that to the this but balance here will start optimistic order Industrial

are I cycle? what back I think to the up were for hinting ready the raised, think you coming you to be at. going question that's we

the we've internally, very bank monolithic we've diversified from actually build in process gone supply the to months. resilience to chain chain supply done, closely chain, last our improvements, the into cycle improvements our pretty supply we've XX with chain, built a the made supply we've work a Our ability geographical the time

So the proud what really up sets done and to to snapback there, that team any demand I'm in well here has near us in respond the of really term.

Our O'Malley Thomas of line next of question comes from Barclays. the

is on [ Kyle Lucian This for O'Malley. ] Tom

the I decline, So pricing how much wondering kind for would was June that support? attribute of volume of to versus you

mostly It's volume.

improvement extract approving right. prior in shape the we've follow-up, Or Industrial an of kind bottom as modest as calendar later recovery? idea of do just year. But typically characterized off that seen And you expect Like volume. would you Mostly can this for growth you give strong cycles? All my you the then of initially?

very to hard Industrial tell, are At markets. exposure Kyle. to It's we point, our this in targeted

some win those are incentives regulations there's momentum data charging, and investment So focused driving and government EV there. on And good it's including we design that And clean markets. automation. Industrial of a centers, really very energy, in lot see momentum certainly,

down, in We quarters the to reasonably for those we get call are inventory a hard sort timing way. meaningful we've this back inventory It's as the position in will though. -- But starts to of markets growth that mode confident correction been work to now. a feel industrial few

We another Optimistic expect Industrial start continue half to here to it the to for come couple. our of we 'XX, that should see growth. the fiscal in back second markets

to turn for showing now to Hoover call at am further over I time. no questions remarks. the would like this I Jalene closing back

us Thank morning's join you, to you this call. morning. this taking This time appreciate the We conference concludes Crystal.