Belden (BDC) 3 May 232023 Q1 Earnings call transcript

Welcome to this morning's Belden Reports First Quarter 2023 Results Conference Call.

Just a reminder, this call is being recoded. At this time, you are in a listen only mode. Later, we will conduct a question-and-answer session. [Operator Instructions]

to call like to now would turn over the Mr. I Reddington. Aaron ahead, Please go sir.

morning you Parks. call. and for you. President CEO, everyone Thank Good Senior and thank are President first Vice XXXX Ashish Chand; today CFO, today's quarter for earnings me conference Jeremy With and Belden's and Belden's us joining

operating will detailed review of Ashish will of overview a strategic by our business, financial provide and results, provide a and followed Q&A. then Jeremy our

we presentation, earnings have we remarks our We of at release online presentation this morning and investor.belden.com. these available a earlier that prepared issued will call. this slide The and prepared on reference currently press are release, transcript

the Turning to in slide X presentation.

make forward-looking management call, will this During certain statements.

most report more XX-K. Form recent annual review information, and For please on today's press our release

today’s adjusted financial management or during call reference non-GAAP will information. Additionally,

Regulation In the information a associated the non-GAAP to our Investor website presentation of the section to GAAP the and appendix contain of most communicate. closely our information reconciliation accordance Relations with financial we G, financial

I our Chand. President will and over to call Ashish CEO, turn the now

Thank you, Aaron.

moment want express take a business Board, to and I First, the my gratitude partners. our employees, to to our

XX held Belden. have years, last numerous at roles the Over I

CEO. continue Belden However, my excited truly honor a able headed to President company. and it as is where be I is journey my to am as about

an our It’s We opportunity. are provider. the in team world-class our I to transformation our executing leading am transition company adding solutions and upon our becoming by and strategy, across driving for more business, humbled to a the innovation exciting

quarterly task the to hand, our results. Now, at

achieved the four for XXXX. today. results to first major slide quarter reminder, a accomplishments to I’ll of the a As referring turn adjusted be summary in of we Please

another outstanding row. that total our again for the and quarter, EPS with a XXth once in quarter First, team exceeded expectations revenues delivered

our the guidance Our exceeded margins previously organic growth quarter. our expanded, for our grew, and revenue issued

organic by across of margins growth, increased with both our segments. product by broad-based top in improved favorable positive our driven XXX a to the by in regions. the combined XX.X% Growth and organically, our businesses growth for basis on On with solid quarter, Revenues growth our X% was mix. quarter points EBITDA organic leverage

to Belden and supplier value-added of increasing consistent we margins, organic are a results; provider, solutions products from the trusted to continues seeing As more partnerships. customer and a transform improved growth, deeper

fiber the Second, I growth Sichert. portfolio on I am markets. to solutions pleased later, April key provide is addition great our broadband at closed acquisition Sichert more will announce in in a high we our to capabilities that but level, detail a strengthens and of

Board the pleased I to approved $XX towards that repurchases. $XXX now Third, have million. for additional announce repurchase remaining Combined the am an to prior our with authorization, share we from of share $XXX million million Directors deploy has plan

will is our us multiple to to great of Board the confidence This our come. shareholders repurchases by for capital deploy flexibility vote allow quarters and for toward share

Further, during the repurchased authorization. shares, prior million our from XXX,XXX utilizing we $XX quarter approximately

high-return have focused capital messaged we opportunities. toward deploying remain we As on previously,

like Sichert, program. Our share product in to returning bolt-on selling our opportunities and solution strategic new priorities and top repurchase capabilities, investments M&A capital organic through shareholders innovation include

Fourth, ago. X.X as a at and times low down towards X.X our Belden at we business remains continues times high-return opportunities, invest year our leverage to from capital grow,

net plans Our times. our current flexibility significant balance ample execute target we sheet net to below is leverage have whilst with leverage, X.X staying strong of liquidity. strategic Combined with low our

the track to up for million, achieve well and flow the targets trailing reached cash free articulated. our Free quarter flow previously on we year-over-year cash XX-month $XXX was

has a In few over the the of margin undergone was and business years summary, for change sustainable, quarter the our produce more last than another to highlight past. Belden this excellent higher to Belden continues growing, business the and

slide five. to turn please Now,

the joined in growth and team plant polycarbonate portfolio manufactures solutions that As I cabinets Belden Based Berlin, to expands Sichert past utilized PONs, April. this mentioned of markets. acquisition in previously, This further XG end-to-end at will street fiber I and portfolio outside our in enable designs excited optical Sichert a passive share am networks. Germany, and or incredibly networks, key

Founded demonstrated growth margins our XXX in with business. consistent revenue years combined ago, with has Sichert overall steady

In fact, improved of revenue years, three over XX% the a last Sichert with nearly margins. CAGR achieved EBITDA

at of proven in EBITDA. an XX immediately The with times is approximately deep current acquisition came and attractive to financials well-established and accretive operates our markets, relationships. multiple customer Sichert year technologies together

always and us, perfect the enable to to is to the are solutions people we our add team of are excited good example further offerings. our of as products types most attractive Sichert deals that that

turn please to of our strategy. solutions overview slide Now, six an for

discussed have last to Investor few through Day past, last add sales. we year years. the to internally relationships our more delivery, evolving our or is was value the in solution has strategy as First, theme solutions enhanced Belden articulated This key over been a customer during and

segment, our capabilities leading Solutions developed and building Broadband and markets. Buildings out past with executed Smart Automation for success. towards with we strategy, the way solutions we approach well role my are solutions enhanced Industrial on In long-term it the Consistent much the our delivery

referring with core Second, a Belden in Solutions relationships. improve who key adds customer to customers dedicated helping KPIs to we through provide and starts verticals, Enhanced teams, talk It specialize more we when Delivery new data – solutions. clarity, solution are value network or to sales, about way

that work across are Customers bring and and data value. together challenged utilized teams add operations networks so by as to these intended our to can increasingly be their of they islands

high Belden has a strong products enjoy portfolio of margins. differentiated that gross

workforce by in differentiation value help customers our improved or we partner adds Often, their advance results. becoming customers. productivity, optimize a operations, increase safety or improve further for offerings the customer through trusted that marketplace solutions Our

experts, strategy enabled Our is our key verticals. around matter subject by who align

we and in design As to maximize network solutions cases for XXX over implement had and valuable of use the selected quarter, to trained customer consultants, end the and of data specifically KPIs verticals

strategy sales Customer our Innovation involves Centers solution CICs. our of or Part

in is not failure where looking to the an are are real-world Our option. customers for solutions difficult test that

or auto the an risks. Consider testing example, manufacturer unproven for meaningful in has solutions hospital, a real-world

experts subject validate businesses. peers actual implementing add capability our connect matter the in value Our consultants from and person marketplace. and allow This their with in the before and CICs in us differentiates greatly networks them enhances customers with solutions to products

are We we in margins our and position, still evolution. is sustainable to success been ultimately finally, our we solutions further future last And produce will this early our the greater and strengthen Much competitive and growth, flow. and ahead. has critical effort years, few cash opportunities higher over accomplished see believe

global a seven had of based Now, example distribution a please for in subsidiary solutions operator enhanced Spain, EDP electric problem. system real-world of our to a delivery in slide action. turn E-REDES,

the crews average costly During times download network, power for manually half when in a E-REDES This for make lost their regulatory the their the it employee went downtime. and data, fault. revenue, took time, in-field and substations, containing to was inspect system form hours to of calculations pinpoint charges to out segment on on associated the two and

component upgrade. understand time the needs, comprehensive a broader pain able the taking merely project a instead before to began, customer’s By expectations and solution points, a of truly was network to in Belden provide

solution proofs team the until Our set. various found concept with test of E-REDES right worked to we

location, Belden in As drastically designed to a hours time fault locator reduction from maintenance for and the XX result XX% savings by minutes amount new system before substantial reduced half our of two has a advanced a on afterwards, our crews time of a efforts, customer. response fault spend yielded

example is Belden solution where headed. This is

solutions. build network complex our problems to customers and expertise continue our for We CICs out subject utilizing consultants data with at matter to solve

early are reaction our capabilities. in We we market journey, encouraged are by but the our enhanced to

Jeremy ask first additional to now provide performance. into our quarter financial will I insight

Ashish. discussion the segment cash of of quarter, comments flow the Thank and a I results followed with will a balance first sheet by you, review performance. results, start my our for and

a today. referencing I be As adjusted reminder, will results

quarter Now, of please for quarter. eight margin We meaningful slide review and this to growth first expansion presentation our again results. delivered a in turn our

First quarter organically million range our $XXX X% X% million. year-over-year revenue increased of $XXX exceeding $XXX to guidance to million, and

X% another in revenues Industrial with impressive We quarter had Automation increasing organically.

labor industrial customers capacity reshoring and respond term to automation We to demand for drivers see of compelling requirements, solutions continue longer shortages, as production. the

revenue for of Solutions Smart mid-single-digit in and the with and in prior growth expected quarter as Enterprise organic X% growth in X.XX was up increased quarter. Orders came X.XX, the with an which a book-to-bill on quarter basis, ended low-single-digit year-over-year the in we Buildings. Solutions Broadband from

from in points margins the to in points basis robust quarter as profit were to compared typical quarter favorable benefited absorption we than mix XX.X%, in Gross inventory product basis first expected better up QX. XX year. levels shipment XXX higher quarter increased meet a and The weak up the prior and a sequentially

be start to XXX strong the gross we year basis points up to the to full now least XXXX. compared Given expect margins at year,

margins prior EBITDA period million. year $XXX to from million, quarter Net to $X.XX. our up $X.XX year-over-year in XX% increased XXX quarter $XX to period $X.XX guidance range first to year to in EPS the income of ago points year-over-year in million the $XX and EBITDA the basis in $X.XX XX% the compared increased was expanded exceeded XX% and XX.X%.

transmit and of slide markets helps Solutions and to video, presentation process business mass audio, include nine data now Automation for Turning I customers our Key begin energy, manufacturing, facilities, secure segment will transit. which in and harsh environments. the segment, our industrial in review a results. with discrete Industrial

verticals. X% year-over-year strength We revenues of in million, organically. Solutions The primary increasing market generated each broad-based Automation Industrial our segment of $XXX and achieved X%

EBITDA volume to basis Industrial for due Automation favorable XX.X% Margins were the points in operating XX margins XX.X% leverage to growth solid and segment year. compared quarter, pricing. the increased prior on

enables customers networks. enterprise data complex Turning Enterprise and now transmit across audio, segment, our and video, secure to which to

and year-over-year organically. generated Our Solutions The $XXX revenues X% and Solutions key million, Enterprise markets of include X% Broadband Buildings. segment Smart increasing

operators Revenues Solutions strong networks. from they organically by demand and cable due to their in expand X% upgrade increased Broadband as

to as with funding of combined for outside demands long-term our in upgrades. government copper expect continue growth ever-increasing products fiber a and data network We result

Revenues increased by market Smart Buildings in X% organically. the

verticals priority growth on positive organic focus continued quarter. contributed the to growth in Our

to continued expect by within our solution-selling in Buildings Smart progress construction, applications we we our expanding softness market. While targeted the capabilities are non-residential in encouraged

Enterprise year. to EBITDA the the Finally, XX.X% quarter, segment in prior for Solutions compared margins were XX.X%

We margin basis XXX see a disappointing of XXXX. are points margins of after first improvement the quarter pleased in to

please will turn you our If highlights. for cash XX flow balance sheet to slide and

in in the quarter dollars quarter first first and XXXX. $XXX cash $XXX the compared of and million Our equivalents balance at end the of million fourth was cash to quarter $XXX the million

financial at time to was Our X.X and in debt quarter first quarter, net year fourth a the XXXX X.X leverage times the EBITDA the end to of compared ago. one times

Investor As in times XXXX maintain forward. to we our intend X.X approximately net going communicated leverage of Day, we

$XX cash year. prior usage from the first of For we flow quarter, million, $XX in of realized usage an the million of year-over-year, million free improvement $XX

seasonality. usage the for past typical in free cash reminder, our is flow a business quarter As of consistent and first the with

trailing $XXX our cash quarter, first twelve-month free the to our was achieve of which track puts cash dollars, us targets. As on flow million long-term flow

back outlook. concludes I Ashish the CEO, and prepared President for my would remarks. like now turn to That our Chand, call the to

Ashish?

Thank Please to Jeremy. our XX you, outlook. turn slide updated for

Let me pleased by performance. I am start our saying first with quarter

discussed for revenue, growth. we As expectations EPS, earlier, and organic exceeded

expect year to we macro be forward, XXXX a Looking continued of uncertainty.

business secular have investment is that our trends long-term lengthy benefiting However, from cycles.

such, we focused M&A. bolt-on growth on investing both opportunities our As in expanding and and remain growth organic

first-quarter growth and capital organic targets. share reaffirming I we and EPS revenue solid our year to deployments, that Given full performance our outlook are am recent and revenue increasing pleased our

between For the $X.XX billion. revenues of expect now we XXXX, to billion full year $X.XX

Automation mid drill our X%. in Smart year-over-year. Buildings approximately mid-single-digits, the growing Industrial When We high to and X% we to organic are growing consolidated growth see in organically deeper, single-digits, of remaining Broadband organically flat organically the to we continue reaffirming

$X.XX expect X% We full-year approximately of XX%. growth be EPS representing $X.XX, to to XXXX to EPS

with between million, For between $XXX million of X%. to the expect $XXX second X% organic quarter, to we revenues growth

quarter We EPS expect $X.XX. $X.XX second to to be

designed to deliver portfolio in growth of excess Our is GDP. organic

long-term confident ability to our sustainable, execute and are We generate our strategy in value. shareholder

Belden aligns key well in connectivity, network portfolio Investments for sustainable upgrades growth. transformed and secular usage, all long-term automation, increasing trends. Belden reshoring, with Our produce bode earnings increased bandwidth to

before to slide review framework creation to value closing XX turn remarks. our Please

our First, like to would creation reiterate framework. I value

by goals. in and flow, more these is disciplined and excess to robust commitment cash organic is excellent of making continues to to execute drive or achieving allocation. GDP, margins, EPS Belden through XXXX healthy growth capital progress $X Our toward

including made Belden Second, for we ESG and XXXX energy renewable week last and our we you priority our key issued much, This progress first a have Report overall of highlighting strategy. usage product of past reusable utilizing our previously that our and recyclable published packaging. materials may our goals, and seen in to-date. year XX% accomplished remains ESG onsite increasing

and I savings our the in in improvements coming look to and resulting forward business focus is positive our commend cost impact year. in partners. more enhanced and saw Our ESG accomplishments continuous engagement we creating associates with the a efficiencies, XXXX, we for

Next, moment of for of our CEO. as a I transitioned would past and President efforts quarter role the thank them the like associates and to take recognize into support this I and their

purposeful phenomenal work. are We results and achieving you manner. transforming and hard measured Thank in for a your Belden

conclude, say going will growth, we discussed strategic To share to that be would I our forward. in like previously capital and strategy. organic Investing repurchases committed are to priorities bolt-on M&A, our

will We environment us into and enhanced view going lean differentiator forward. a in it we continue a advantage delivery as competitive solutions the give it to will as

future than sheet is The with our is current however, dynamic and allowing better current is to and more the business resilient strong many us marketplace remaining; balance our uncertainties challenges. in past, navigate

questions. Operator prepared our to concludes That call open the please remarks.

Goldman go you. [Operator We'll Instructions] Delaney to Mark Thank with Sachs. first

is Please open. go line Your ahead.

for thank morning you Good the and very taking question. much

one a success? better on you us change solution Maybe priorities responsibility. in spoke your your how in on you a what and you to are understand bit plan can given help you you for elaborate more sales. measure I key first if could prioritizing if prepared already your mean, Ashish remarks bit

Well, thanks question. the for Mark. Sure,

solution. So, year, that changed impacting is and to spoken customers' a Day as either providing solutions. what at with a or understanding means our and us being network last we've And for even strategy products network our Investor a them supplier our KPIs value-added from meaningfully data has

very did the three over last Automation And the our terms we solutions business. Industrial actually the approach in which in years content in well previously of segment, tested this

our are now expanding take so Solutions is Belden, think We Enterprise I across to ready going to segment. first solutions priority this forward our delivery enhanced

many in areas are that interesting there And space. vertical

going For to hospitality, -- too. we course, centers education, areas these example, to focus healthcare, on which all higher whilst, data continue and of

other through broadband offering solutions obviously connectivity our We need where to our move connect data to places to.

of to correctly the infrastructure, to connected the optimize end applications the operational So, it the backhaul day, to a is order chooses data I our trying backhauled is job be by certain to whatever it or sure mean, at within customer collect the can all do. make they're in that so used correctly

So, it's a reasonably story. simple and robust

and gives these solve have we position that that management, data data the a data and is we unique player think the I marked acquisition, in to are that happens be only data us transmission, to orchestration problems.

our success, we very In steady in growth. terms to solutions of of measuring be terms want

to So, currently, up over at good low us. very margin in single-digit, would plus that in terms of we which few be are high XX% double-digit we to next the mark terms take this And accretion want our of for the solutions years, steadily level, content.

rough like target a of, how And of is solution margins sorts those sale, it for in split a higher areas? much margin

take contractors this products right? our high integrators, if So, OEMs, Mark about our way on are customers. pretty our So, you margins is base point solutions that systems end today, to and for think are create there business just notice itself, the that the and

you margins XX%, that in XX% as space. make, know, we And

with provides to it we XX% the very how then Solutions long data and does much be we If that can approximately have, in more sticky margin relationship of But the become full becomes different kind built tend higher solution and margins I that's data our importantly term network value. how that higher. we base horizon a expansion more XX% because do and think integration is even than customers. typically

That's helpful. very

of year want book-to-bill backlog play its a versus I the last had under backlog. the $XXX was us if at I expected could high mean, very orders over understand but with I think think Maybe that. bit was better I levels you for and million end history, your dynamics you more just orders, X, one at please. me help and guys

environment can you So, year? maybe order out and much just help backlog the the of over us worked Thanks. it how gets course understand the

Yes.

that in by we labor changes right? has are investment needing is benefiting secular Industrial shortage. cost So, said, obviously in their in like people work Automation us productive. terms infrastructure markets more capital general, driven to and in long-term the Even market trends we get help So, of of the from cycles,

Obviously, in across inventory we've some had been been remain has So, there automation expected. contraction year. last positions that orders overall, noticed verticals the because industrial strong of as created

I And XXXX. -- supply orders, driven are And as normalize, backlog slowly but versus backlog was we business. are customers early up XXXX the approximately think not XX% a chains but our reducing in

be were in used to be four In XXXX, at point to a to one used sales of And month's time, three we -- in at of sales. like months terms like backlog.

adjustments, slight we have concern and deterioration Mark, of with about very this at because no that are point backlog. inventory we So, the even well-positioned,

you. Thank

next to Stein William go Securities. We'll with Truist

ahead. is line Please open. Your go

taking think on business, that. quarter Great. Thanks concern. one outlook. it's like I'd to drives on linger Congratulations most my for the questions. Smart the Great Building and I that the

you're seems negative I the pretty construction. think year, I it outlook really non-residential guiding quite flat for positive -- a considering, think pretty which for

past, versus the split time? trend to coming address talked construction revenue upgrades the upgrades construction. or per new perhaps more between about that you've versus and expected how you in from Ashish, over is project is trending Can new

kind all, words Yes, so for first of in the you Will, thank your quarter.

overall non-res it's facing, of is to some pressure, as coming out, Buildings Smart right? on market soft business, this negative So, with our you what's because so pointed going

given size, some where exposure, very very in China our we B, example, growth. we the I in But markets to have right? we res given operate, past limited think, been cyclical, non which there's but nimble A, So, for the

in currently for where the are in example, underway, like upgrades are the we infrastructure And US. markets

hospitals And outs of as at more that's there's or at or more bandwidth if look required, education. If whole taking place. you connectivity more and airports consumed, build look a cycle as you you is at if look

to numbers point how that X% QX look of with size priority you in out, in we but on, at actually focus we splits at you share have don't in grew this the if markets. I terms verticals those

to add maybe and spite it. And verticals in list, of as to but that about business pressure be that the I flat, feel our good we can slightly Buildings expect more in we pretty Smart range overall be non-res positive,

the in of Now, projects. seen have upgrade we some

versus anecdotal more is this So, empirical.

side, converging We in us on we more working keep on going great and but to opportunity of portfolio these how upgrades? our we've acquisitions that's content that's will done an these fiber fiber the the are terms for have the of built capability up and And given of broadband total some significantly we seen very bring bear on quickly. on these do

I about Great. your talk to of myself then otherwise have in inflation follow-up. that ensuring a gets one questions. process bunch the Maybe cost along passed customers? to of other limit trend inputs of of you Can and I'll or terms

delay, I'm both but not those sure there's sure and phase. sure you completely cost out in pricing cycle the you. can maybe are of somewhat cycle some I'm us? to sync. there's I'm clarify the Thank

Sure.

So, within saw there's all, in versus been more material XXXX. a reduced, actually first of has right? we volatility So, our inflation areas little the stabilization raw

the notably, stable component So, on side, electronic most we've seen more pricing.

things I a think company. there are And well do pretty three as we

on having is first to The terms just mechanisms these in costs. of pass

up, a cost between there tends quarter. cable lag commodity there it going be obviously, that and on to So, within we typically a our the realize is can go price when the lag versus portfolio, up is when

of not as dramatic. it can So, it's in that our getting in you we've And see proactive margins. been it's reflected ahead not pretty

with for a On ensure delivery with discussing how pretty especially return cost straightforward And can on been customers we've on them in escalation. we certain of side, components, situation. electronics the it's other the in terms time our well-documented

our to cost if incur if will the is to network data -- were And operations project compared to they or and solutions so those small a these solutions provide customers that to them significant with it's in go to value were what markets we down. the be delayed the would

been a us. area of strong So, for I think performance has pricing

we second I thing engineering been the well think do has redesigns.

to changes of versus less we the example, available. on some were available made for that PPAs our more components So, based

that pulling for were Electronic quickly I think I our you set and We Industrial these changed of and together we in more about design Electronics We I also example, started because the for competitors, in market. some Consumer available than more versus they were this. for point components and at time more talked using how think boards

that is helps absorb And of that especially course, around these regional footprint some and helps our logistics. us then, of thing the third us costs, manufacturing

or So, there's I'm point on this that not unexpected nothing discussion. concerned constructive about raw pass can't material at a with inflation, that we is

you. Thank

We'll move Garner The Benchmark Reuben with next Company. to

Please ahead. Your line open. is go

new Maybe just or of morning, you. terms Ashish strategies on side it strategy, going in wanted the like an picture to to Thank is change It question from kind everybody. business. broadband you but the a the in solutions you. of the the just Congrats whether any role. doesn't of growth Good sound big clarify, foresee approach do is shifts, M&A be much

that Is to that motion anything table to the prior the something CEO going any you of that, that something you're kind be in with else bringing might in already out was change the that you forward? different that role, jumps to to

Thank you.

So, that no basically, can our first to stated growth. change are proud process solutions focuses terms right year, we've capital of last there a of We forward in we company as leaning significant on is you I strategy. stated checking before, -- being yes, said and, organic we deployment

then bolt-on share third solutions-driven on Second on repurchase. acquisitions and

So, those intact. things remain

think changes much terms I in how is flavor really accelerate. of what the we will

it's not of it's and in of so want this right? small problems more of pull talk all And of we terms the of a of problem. to we've manageable connectivity, together with insights of dealing struggling eventual that and seen and the -- they're do more islands whilst feeling islands getting us network, we the about islands automation, And data, customers data islands how

this opportunity grown, verticals. customers problem has And that I selected engagement think with grown and our selected verticals can has to as take as broadly we our and appreciation of feel in we multiple that that

have operating technology, a realize also a today, some And of factory, city, it's a connectivity that's do whether deal a hotel, the it is, hospital, customer of infrastructure, whatever that they as smart a with right? to that, we hybrid we

go Wi-Fi, where from way connects it all And that's they the the XG, private broadband to business this valuable process. who somebody can all cable the part to can and our when cabling right? of becomes or you the fiber, to need service to telecom So, pull IEEE very copper XG, together as provider, to based solutions

So, how had articulated fit solutions not to offering. previously, we broadband necessarily in would our

I think as now we've really clear made we very that are position well. acquisitions and

a example data. environment, Sichert, of for or manage network a and converged operator including for example, campus is great makes how solution or it within a large offer broadband owner smart that a could a a cabinet to easy their city we single

where a I resource it you're story lot This We doing. are accelerate We we what a a more. So, lot right. we continue just think is more.

We subject then Bangalore. are forward coming Chicago, the another is in way, hiring leaning our experts. being leaning up CICs, in one forward our in there's We're by on matter and tomorrow inaugurated CIC next

the that's So, way I forward. indeed think

of be side, like, do to how it like it is What you to take do shift? are just a investment you're we for this of this broadband? you industrial leveraging quantify? kind Any to place kind is the set already the whole going to in some for hiring, this follow-up sounds And you investment -- new sort have for that, foresee, going CICs what or of of

Yes. question. good a that's No,

we would what that Industrial that and shortage Remember, approach doing we they within building last during some meant supply was for lead-times capital that were offering. the broken, only of Automation. our intention of was So, space always problems in CICs, aging them Industrial when our in the equipment. up, more chains opportunity the three and we complete of years pandemic Automation, pilot present customers equipment, saw going were go the to build were not with cost the It were because we the pronounced, that facing build labor,

for near-term us. So, that really was the opportunity

go offer whole be play -- the in telecoms. already data to the were connected easier entire fair, it walks and customer right in for full networks industrial highway -- the became at right? where information solutions. or So, Belden end-to-end, shop Today, the see how space, to CIC, our it's the when And into reputation a to gathered that taken sensors to through a processed, had we the they floor, level the solutions portfolio from super broadband a is enterprise from

will recreated. to And that so, be really, infrastructure not have

the one which hospital hotel room room. have we technologies in a we open Chicago into to will have tomorrow, fact, that and actually in smart up coming built go In there a show

pretty it's So, seamless.

Now, and training are is to invest by be need what to we we materials and cases vertical-specific will invest in verticals, as we verticals. new use have in there activate that have to adapted

So, different customer or different experience verticals different in in preventive maintenance verticals. is different is

developing little lot as for verticals. had solutions have a new extra QX, for may spend we items you And in noted, basically, a of one-time that materials spent, we

happened first we space those have They have enterprise thing might the that the results. that side. on we in Industrial terms get to before The may same the invest in the margins, little bit a leading in all space, be sense So, our of verticals. can gross benefit invest we for the given forward to

percentage seamless. our fairly And fairly the as of manageable. so yes, revenue, But a approach it's I is think

combine to will all across We to resources take the our businesses three solutions customers.

Fantastic. quarter on the and Thanks the for detail luck Good and outlook. on congrats quarter.

you. Thank

will with We Instructions] Loop to Capital. Dankert Chris move [Operator next

Please go open. is line ahead. Your

of that morning. really guess much just we the taking terms prize that data the increasing solutions to of stay there, the kind can are how on to together? of marketing capability help in kind Belden Belden how do It do think Thanks bring often has about them to for Hey, islands seems question. efficiency. CIC, for these the I like customers

to we speak get opportunity So, inside really terms is out here, the opportunity is how to of sales? just mean, faster in it We're leaning going to there on the do CICs move add marketing. faster? to I an message

how No thank high all to something able with, customers quality deliver -- you. with we to balance we That's faster. balance the Chris, we and solutions mind Yes. that do the grow do need being the what's that on between to How our the time. contract

And companies you we've about the from at transformed because to products to go that interestingly, XX% too And solutions. they it's for single fast. So, looked biggest have at why XX% it the look pareto if only make XX% fail,

is is for a and think a this I transplantation. And not what's truly transformation us important that

about the So, not changing people and it's new assets we and not getting people new have.

lot design, a these about support, that this solutions. to So, is sure deliver, our people are existing making deploy able

a now Solution achieved what So, it Automation think right the for reached is certain measured. Industrial segment on we've in of very you're that segment, we've we have been But time I point acceleration. terms --

why are now -- which ready. we'll all straight was all we this are with So, the XXXX, of have going them through CICs Within XXXX. XXXX, for planned away. is we Previously,

We're are already XXX. rate which have we We at the hiring consultants. increasing

this the think on have should I year, enterprise within XX another especially to traditionally XX segments. we focused

more There's of a do terms also and lead leaning in our whole means change that's generation taking digital lot go-to-market on process. a place We're to that.

promised And this to reputation think So, made, that's we of we right? deliver being stands what want to I We a ultimately investments extremely measured. reliable. be what for, want being because number of but are Belden have we

mistakes. that's and delivered. and Chris some want know said haven't solutions network that with can don't come connectivity left customer repeat or you solutions glitch also something companies and hey, offer have there that always missing they those we problem or to out data And we and have we been They've the some

of that might we So, more I speed see which mindset see will acceleration. can legacy are But made, forward. a bit you go being the the a lot at little you you terms in Belden investments and lot of assure a of

here. Got to the color there. much it. Thanks just guess follow-up so I Yes. No. for

Forgive and it, down from just here? Maybe forward on kind any the regarding you're Act? what in Infrastructure do was the fiber projects kind going broadband I those of if out just me fiber hearing growth guys some Jobs you break again, quarter? what I of to of that anything on and and related mean, update missed but customers growth

I'll Chris. number. fiber Yes, you give the

products So, think up home And the within or broadband I X% were about fiber XX% was year-over-year. outside XX% up sequentially.

Yes.

broadband the story dramatic business a side. been success has fiber in Chris, us So very for

been kind closer the mark in XX%, XX% you fiber growing If and to XXXX, and very remember obviously it's of mid-teens, now was it's consistently.

bolt-on our Sichert. including most in of space have been lot a that And acquisitions recently

believe that in we market. So,

in will versus are in remain the access right? are on we not technologies trunking focus call I bulk we the the Our not what fiber. So, obviously technologies,

more in also more quality, overlap users. finesse high see to that Buildings where technology. gives the market are We we Smart our bandwidth fiber products high the access And that and with is

of so thanks Well, here color going much it. luck and guys. definitely there the Got best forward for

you. Thank

Thank you.

at our question move next Steven We'll Advisors. to with Fox Fox

ahead. go line open. Your Please is

I and decrementals incremental Good were Thanks. like numbers XX% only right, outperforming my positive on the basis, margin on your then, year-over-year morning. like did you guys the sequentially, are looks side. it Hi. looks XX%. incrementals If It a were

context you outperformance, quarter-over-quarter? was down margin explain if I improvement that Thanks. XX the of especially just And basis wondering I of can had in So, breaking a then the maybe gross points follow-up.

one. take Yes. stab Hey, Steve, at I'll that a

the first in were margins really obviously profit quarter. gross strong So,

margin products a I think active variable very of we switches driver mix to some products. higher rich our the was tend of than routers, just and out other shipped key which be that there

suppliers on What shipments. little those we of able was saw bit maybe terms quarter from components a some in in in catch and are getting of little first up we our electronic of so suppliers to of components, easing from the some bit a

strong stand was margin, a really it profit So, mix product strong a really point. from gross

the did build from inventory got of In addition, the little in quarter. we a talk the we benefit in a script, bit small

So, We up of build. for quarter. us which little not inventory a atypical the bit is bit, basically inventory first was a in have little

got we as first absorption quarter the positive So in well. some

And how across year based the the I'm of this network looks the European little maybe curious take guess, just growth a it's much it you sort of a I your business? type bit can sales us you since what quickly was it's to contributes European it helpful. on can more Thanks. a or how on that's give color then trajectory acquisition, And business for it earnings Great, on, just quarter? like

Yes.

I'll me let and in second. I'll Let a you numbers -- first Ashish give in jump then the

So, obviously, to ownership XXXX. Sichert a of bought a million the have in business revenue, year partial $XX that basis, we're in but roughly year it's we on going full

million in this is revenue of EPS. roughly the So, contribution about year and $XX $X.XX

so the It's in a space, very there's business now, there's has high in teens, a the been which the of And growth on. Sichert by dark data there's in is going lot a this terms in that fiber exciting itself, growing driven data of in right? been mid Europe especially to right privacy, lot region expansion,

growth has Now, this is been. to similar our what

very cabinets, to other in XX% we But of a not those think products from portfolio. that sell those does terms cabinets, lot because when I maybe advantage significant essentially our it our portfolio a goes us So, into add it's surprising.

to obviously us to does polycarbonate a forward bundling very able different it these quickly. provide take this cabinets. we And think And So, are solutions more will be we markets approach.

Some different jurisdictions requirements. have

So, through those. we to may work have

around product, locked too. broadly, and secured. it's of comes this some But terms it a pretty in how highly is unique certain managed differentiated intelligence There's it's and with software how that's

do of would So, learn customers we to or that already see with saying lot a us. raising more and hands they a proof-of-concept like their

So, it exciting. very is indeed

helpful. that's you. Thank Great,

Thank no turn closing holding, Mr. back other the for to or would I you. comments. now like additional questions to Reddington With any conference

Jess, thank call. today's joining you, for and Thank everyone you

IR team If you out questions, here at please to reach any have the Belden.

is email investor.relations@belden.com. Our Thank you much. very address

conclude at participation, your today's Ladies We for and disconnect gentlemen, that thank may you time. call. will and you this