Texas Instruments (TXN) 22 Oct 242024 Q3 Earnings call transcript

Welcome to the Texas Instruments Third Quarter 2024 Earnings Conference Call. I'm Dave Pahl, Head of Investor Relations, and I'm joined by our Chief Executive Officer, Haviv Ilan and our Chief Financial Officer, Rafael Lizardi.

For any of you who missed the release, you can find it on our website at ti.com/ir.

This call is being broadcast live over the web and can be accessed through our website.

In addition, today's call is being recorded and will be available via replay on our website.

forward-looking TI's involve from results expectations. include that and management's will cause could to call statements risks that uncertainties current This differ materially encourage description. Today, as TI's forward-looking recent SEC notice earnings We a published the most review more following for in complete release well contained provide the regarding as today filings to you we'll statements the updates.

will of the overview with quarter. quick a start First, Haviv

to we're our revenue quarter markets. Next, well he'll capital for seeing with quarter XXXX. guidance details will with of into management the the respect results, update of Rafael provide lastly, results what financial give end some And third as the on share fourth insight cover as an our

With to let that, turn it me over Haviv.

Thanks, Dave.

of quarter billion, in and revenue quarter. year-over-year. overview declined Let sequentially declined the of third came XX%. X% year-over-year about $X.X at me a the start an expected increase and Analog X% as X% Revenue a of in Processing with decrease Embedded quick

the Other declined Our segment year X% ago quarter. from

Now revenue by our end third I'll quarter into markets. some provide insight

informative seen this to performance Our we've behavior as that on to this is I'll cycle. asynchronous Similar it more market continue reflect last sequential the time. quarter, results throughout focus at

electronics down was about First, the Personal as automotive to customers XX%, continue outlook. XX% up profitability, their single markets. With up review over the was and industrial Rafael market Enterprise that, inventory increased single it grew low strength communication digits, turn about recovery management as me China. to to in digits continued upper reduce systems capital and was equipment these our market The let levels. about cyclical in X primarily XX% to due

good and Haviv, afternoon, Thanks, everyone.

margin Gross the revenue revenue. XXX billion mentioned, increased higher was was profit basis of revenue. $X.X As $X.X quarter Sequentially, primarily third to points, profit gross in due billion. or XX% quarter Haviv

operating expenses or the XX% $XXX revenue. was expected. the XX% or a were in basis, of quarter were billion about as $X.X Net for quarter of from in Operating original Earnings $X.X per million, quarter On XX% that included in ago was guidance. benefit $X.XX the were trailing from year the $X.XX billion flat and in billion share. not XX-month expenses ago or quarter. and our about profit a Operating was items a $X.X down per revenue year share income

in and $X.X $X.X billion. me now generation. expenditures our starting trailing Cash months. Capital results, billion $X.X XX-month our and from on basis. billion flow a was on management the operations quarter a quarter capital cash last cash over Let basis $X.X comment XX-month flow the billion in with trailing was XX billion $X.X were the on Free

a tax As In XXst a in benefits we our reminder, million announced This paid XX-month quarter, total, increase free on flow time. XX which we increases. owners free was In our marking we by of dividend months. Act owners to in X%, and to dividend million trailing $X.X CHIPS we our $XXX credit, quarter million cash return consecutive of our includes from the reflects dividends the continued our year our the basis. In billion to returned billion past over commitment would $X.X cash $XXX in flow repurchased investment September, third $XXX and stock.

average is Our a balance third the sheet remains end Total weighted of at quarter. strong with short-term coupon of $XX with the X.X%. billion of $X.X cash outstanding and billion investments debt

X of days the $XXX were sequentially. $X.X end the quarter XXX up quarter, from billion, prior the at and Inventory days up was million

to the the expect per range the we quarter, range to billion of fourth of be revenue the in $X.XX. $X.XX to share $X earnings billion $X.X in For and

be effective quarter. fourth tax our about to continue XX% the We rate expect to in

same. tax effective at tax would we about law, on rate based looking our you're the expect current to XXXX, As remain

focused stay that term. will add value we in the closing, in the areas long In

continue our and and manufacturing reach and technology, invest broad a long-lived which diverse product in of portfolio, are advantages, channels We to positions. competitive our

which We to on growth to flow will will continue opportunities, focusing to the enable believe strengthen over these advantages cash we continue term. through and deliver allocation free disciplined us per best the capital share long by

With to me Dave. turn that, it let back

Thanks, Rafael.

can for Operator? ask for our yourself you now Operator, opportunity you question. as After a an please lines an In open order limit response, provide provide possible the you to to a questions. questions, of follow-up. single as opportunity to many we'll your

Our Arcuri UBS. Instructions] the from comes question first with line Timothy [Operator of

little the the there? a quarter what's I You every negative weaken is a Can mean, to cite in at orders bit saw But us. late autos you of guess first surprise question talk I China. think much all? did automaker pretty a preannounce. lot we of was about on that I grew, did going

of in So December can about little Is you're a end anything markets? outlook out call can provide December, seeing commentary the in if talk you And sort terms you is there? maybe in what you'd autos? maybe what of it for

Tim, Okay. me that. This start is let Haviv. with

between most digits, automotive growth And So market, high our business from came X% of we did China. grow, the regarding the that really yes, was in X%. around and said it single driven --

that I quarter, kind of third strength the automotive in in mentioned second growth quarter. saw also as think well. in I've China recurred we the drove and It

another some XX% QX and you QX. it numbers, high-level to XX% Just in give in grew

not is I quarter. the growing third surprise drove think in growth really for there is momentum content EVs in China, that's and the that a what it's there our

I not quarter I think mean, expect thing. one to -- a that this I is

in time an think the our growing automotive I there, new China i.e. momentum high. in revenue all is

think future. don't that the near in I goes So down

a the and weakness the in China of revenue and of I are in continued the different, there. a down. okay? That correction trended peaked a 'XX, continued rest aside, seeing quick is in market, If third I the had weakness. We quarter market QX automotive over QX, general, that of rest the see put Now

QX. for it, forecast that's think part I seasonal call of our,

a on, Tim? have follow You

think, mid-single digits at to Rafael, OpEx usually, I for if do. I I low December. Yes. look so is down the guidance,

So depreciation. basis out even in margin down you you mid-singles, assume if get stripping It's like of points mid-XXs. sort down gross the XXX

pretty a that's big So decline.

you are I So lot. December? was in up that see I do finished goods taking loadings a guess down

So if about you that. talk can

Yes.

of a in couple your question. things So

Let expect do flat to it to OpEx, address try we me but slightly probably be unusual, them. up. to nothing

consider So that.

As that far as of hit the fourth revenue quarter, with the the on course. takes midpoint at decreasing, margins,

in expect continue the began -- we will expect room be would building we in to depreciating and October, down. for depreciation the So we increase. gross margins do to fact, And clean Also, SMX.

more to that So -- even put upward fourth depreciation on to continues going in that's pressure quarter. put

Securities. Arya of the America line with Bank Vivek Our next question comes from of

-- end commentary. thanks the providing Haviv first, so for you market

outside you phones? are a electronics? for in I also. demand is I something of strength areas? it electronic the it think attribute just How areas your sequentially is of see what PCs personal strength those we Just in square we think you with kind those what do Or Is doing demand personal think sluggish that personal mentioned better? recall, up electronics perspective? the cyclical kind went mid-teens I and of you was from market in do Or up, the do more bottomed QX XX%

Yes.

that's think a question. great I

the over Let we've me seen of just walk even years. last what through couple

is the electronics third lower would of a the is peaked since third a quarter in year. continuous So the typically in level have we And I peak at market, strength personal the as still every about in PE. of quarter I There the every 'XX at than it quarter 'XX. seen By 'XX, of mean, first look our that seasonality XXXX. quarter third way, it peak. it's for revenue quarter And running running I peak. quarter dropped then, Vivek, the It's than improvement. But lower say, third XX% our the

grow. still So room there is to

bias industrial electronics design automotive, place, are in right once take our attack capacity we and mentioned and had of were said that's cycle. in where in I've the has We in we think the 'XX, in to case, short the when I supply some inventory now. supply calls some the back go 'XX, was capacity towards a as that shorter where the case And with to back we'd our calls, personal

So coming sell before. and of that parts we SOCs go low I having win the a Plus, right off think very couldn't again, we are to trough. back

now. So that's I'm seeing what right

specifically in quarter general, But the all quarter, The the third or think quarter, sectors. I notebook, was third of for and into across most growth I've In PCs. the typical phones the sectors said, strong terms main a of as ones are is PE.

You that? have follow-up a to

Yes.

line. in calendar been question, on more, a in of a suggestion the pushed requires were people Haviv, few So bigger be X that years, will 'XX, back by trend if above not there's conceptually you calls, said, well, and mid-teens perhaps TI 'XX. that been in than kind calendar well growth have picture the what the next rightly sales And close, last -- is

At us are is quarters a do get line see do judgment? at above-trend that point understand above where years? end think will help of is you broader are those start seeing those to to seasonal guidance, think Or I in X early to you but giving the markets? TI you're that sight? what what make So the you And seasonal growth kind it of next too point for not you to quarters above

Yes.

to Thanks. in think recap Vivek. we First, August. management referring capital just I to on call our -- you're question, your The had

look we to people there. exactly ask would just I So at what presented

view presented allows a the to we there flow XXXX allows revenue up And guys set on flat be, and a to know it share referred per I model that you it but or year. say we've during a you scenario, do free cash from to think would to growth are to free according scenario, kind what have of revenue didn't XXXX. that of we and down will scenarios predicting cash what versus I think flow investors revenue it

the a recovery. specifically talked the more question. -- of to markets Look, we already in about midst Now that your are X cyclical

and showing trough think are in right I but electronics, low from yet, they that systems of a momentum. we communication I for personal in system direction. And not done think That's they very strengthening. enterprise are coming but pointing process the us the are

XX% we these the 'XX. quarters go in need in really our third peaked market industrial quarter the and first, automotive to seen Unfortunately, of okay? markets if I decline. So case, our the of revenue X of We've 'XX, in to broad and revenue market about industrial were join,

the peak. versus more down are than XX% We

predict a for to think hope. been can't it the go seen still sectors I see I recover, can inventory or it. of haven't it at expect just I yet, I we we low that showing I is And we okay? it, think haven't think left, quarter side. either industrial it's still lot So yet. okay? have quite -- we predict seen will usually, do but searching the I don't I about the ongoing, to a level, when even the I call So because correction and don't we start it's Most okay? we on time, the bottom it. I persistent say into That's sectors. hovering very a are cannot but

think, more right different number mentioned but story on company. digits. -- a a between On Unfortunately, hovering the about automotive the versus would is lower where between somewhere China the minus it is rest I single upper I we move not market, this before, single our as X% of automotive peak China see versus I so digit to of it's market. complex the business, lower overall single at sorry But think automotive. XX% digit, in XX% peak for it's the say now I the we of cannot because the that and kind are

lower have precise we are still trough a sorry, China, the all searching give it new the there. industrial geographies, But over markets when In I established, time on is that, can't expect bottom. for side, there establish that and not a automotive think I other records do but peak close Vivek. or automotive for being will the other cycle and adds I up, to to you momentum

next Our of line question comes Cantor. C.J. Muse with from the

and of cyclical you are billion, recovery? with bigger first $X.X utilization signs continue thoughts hear half see that you and that cyclical there. to is uncertainty, inventory how to And or that you about keep of guess, running it the your kind 'XX? into at first where part of love picture, elevate looking are to grow Would QX it utilization until of as rates I thinking question, given guess I really

happy No, do Yes. to that.

inventories inventory bigger But I'll XXXX, expectations grow to the some first, then quarter. revenue as as for and we going get in into do to maybe growth forward, fourth in objective picture, upturn, for specifics. we described So prepare the expect in Haviv our particularly support

hundred of in couple third million grew we quarter. So a

We expect have probably the we factory inventory is fourth a that quarter. few moderated hundred growth again loadings. in million -- of But

But down into I loadings, we'll fourth to despite factory expect So go inventory. quarter. that, going still those additional grow slightly

a comment more on to Just the inventory. little

the plans at many, detailed and is and device, low very to are goods the expected finished We inventory it sells a have chips on plans by purchasing long risk. demand, has and and grounded level, level those behavior at cycle. customers many life this It

about feel that. really good So we

you Do have follow a on?

would I auto. on follow do. to hope up I

Are seeing picked about loss in a that little You picking I'm talked Europe That's you Europe. could curious maybe OEMs curious, speak of And points some we've that related China. to there perhaps to data up. in taking as in the OEMs. to kind if that? Chinese up surprise of you something share the share more were Chinese a

because QX. trend a that we've no surprise seen I It's think in surprise, starting not

the in saw QX. TI, call half of China me, for second that again end market in very 'XX, sharp So 'XX. We it to of in it, automotive correction peaked a

was think growth then that inventory it's QX, top correction. I in mainly XX%. growth And of XX% on QX, in

So peak. new running and at again XX% of it think the a about trough

new you driven is think most by our have right? -- hybrid I of couple I are position some sort is market, just there was right, -- and And of very TI is that mainly and think these competitive. about good. a China of to ago, cars new tend majority more there now think or I months content. again, the EVs, the of If

growth. drives that So I think

China the are can Now is in know those they set Xs build our But efficient is there. are performance I They base and of systems. think, the -- also Xs you OEMs Tier sharing good. a OEMs, the in guys cost, experts are they are but pretty also, -- customer very Tier

We think for part momentum compete Tier the also shares of they as we the market. think see the I I see on versus in both. Xs. dynamics worldwide So market And China

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

more Haviv, sequentially any do of unique point? point China Is volatile? row. sort the talked other of in going something XX% is other reason allows would you same cyclical about the Is couple of some a shouldn't at thing? have a that's some there in you at of about business rebound that be Or time business have expectation that the that times up a it China quarters X that the to should the XX% that your XX% there

It's First, point but and some so horses clear to it's asynchronous I happens. time, think for point of this are behavior, at that the all I for all we will direction, while, a us. that. in -- the think waiting been Again, same

design is Inventory there or it China. as between think stronger again, corrections cycle You answer, call can I quick. geographies, it, behavior so the between I call an previous it my we opposite the are markets, about talked the top culture, see say of that, previous response will in environment momentum China is in EV a On quick.

So over are the be played the that's a more we'll cycles would all is way everything when or accelerated, able my I think seeing there. terms smarter that I why -- be completely. we'll be is And out a in thing there But say, down. we think done I little shorter of -- way of would That bit only up, guess. is

term. I've the I be as of on in out peak seen I going think growth over simply China. not is trough industrial that believe, completely stronger say All again, the is can don't automotive the market don't on -- market secular as there, short the think automotive outside I because pronounced the the I to to played But

Ross? follow a have on, You

I One Rafael. Yes, for do.

On question. things, just side conceptual a OpEx of the

takes what have the in endure had of we XXXX, has guess As years OpEx And would you of punchline be year-over-year. And the guys to is, puts into look kind well. and guys you OpEx? certain something kept barely growing inflation time as on I other been periods have

think we about XXXX? in do of kind how structurally So OpEx

Yes.

to OpEx. investments and our there. to on to the fact, 'XX disciplined for it is as continue to alluded our about to, R&D, and invest it process, way comes you In have we we'll think when beyond, But a continue

continue in our Whereas So grow investments grow. there and SG&A, see to is the you'll efficiency. over focus time

drive to efficiency. continue So

grow, it the a And the revenue, those So course, foreseeable will of for lower -- much goal pace probably there for at under R&D. both of but be than is growth revenue future. to the

Stacy with Our Rasgon next from of the comes Research. question line Bernstein

that a more drill bit China little into strength. to wanted I

just it it any you market? automotive in or point? seeing auto. focused strength you're So in end on seeing China of Analog else Is at completely signs other this Are any anywhere in like

And at the exactly could the judge with to trying knows I'm of of up. I going Nobody the what's coming some is be Chinese general guess propensity buying We've more. election what got I'm environment. getting on maybe an guys geopolitical

you and in do auto? both China, see what Just more broadly outside in of

you Automotive we automotive in we I okay? I to consumer a said, think Yes. Thanks. hard I to I the maybe supply beyond was clearly, take the had about again, cycle, similar, the the bias side. we the to just and can XX% was see. speculate our or PE -- had calls even -- up But it's me general, we for higher markets, Industrial tell said XXXX. see. company into on what we during So reminder, as And industrial the because some at in what China of in and and

for just we're -- So front. where starting to know

think worldwide, China. I reason in you only fast the I that. think said are is part they momentum are I the think But So China in before, I think, of automotive, not I -- it tell as customers moving, for gaining can't I the

other and you it's buildup have in seen okay, your on of have we EVs acceptance question of or large China, not a like reasons inventory that. clear some direct mentioned, may automotive. that, a be thing as second but for evidence I there The of very think is, That's anything

On from the China the industrial side, we seen recovering have cycle yet. not

So China but a way in little bit bottom. of we -- at would since included. in -- of again hovering That's sequential had somewhere in it peaked so I has kind QX, down growth again, And XXXX, then, it the went then the it. it QX, describe a we in

happen. waiting So are that for to we

trending China industrial have We recovery actually very seen maybe but with the peak. versus even the high, in so, still in higher a a strong XX% automotive, are or numbers new about

of us -- some inventory for in said are on side. it's there over we the I just I a China. work still through -- don't working lot do to So as think I -- prepared think as remarks, think my in customers, I said industrial

just thing. entertainment, comms markets at, of cyclically electronics, maybe the and are the recovering, all And personal are look Stacy, to contributing you When to that one that. and add other X regions growing

off again, Yes, a China you right? 'XX. But in of low very if included, will, number, in

Do follow have Stacy? on, a you

ahead. know guide you I seasonality maybe like would guys like levels? it don't over how versus for just sort like what typical performance do. versus of And mathematically, normal would pre-COVID I several at seasonality. you QX? the last looking And guys define we've you X been How But quarters years? is it define

about So QX, Stacy. maybe I'll talk

you even minus in think and outliers how were QX to typically X% minus XXXX you And can or... I the close And quarter, XX%. of kind it do you seasonality. some the sometimes to what cycle during Dave, people I see the you the the depends like and a fourth need one, XXXX way add up outliers to kind away. the of take it, -- define we

flat, bit. flattish, it's are It's little seasonally and a usually quarter weaker it's quarter down But -- quarters. definitely fourth our more more Yes. more first maybe

are third Second stronger quarters. the obviously and

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

comments clarify to wanted preamble. made just I you in Haviv, the some

kind talked correcting X the comm showing You PE and of about momentum. but markets, enterprise, still

still of and off X So Or of Are coming not bottom are finished, actually X improving? but those the showing some or those progress. sequentially declining?

No.

X all are growing think I in fast a sequentially pace.

not the sequentially. My continue momentum, repeat I and they comps So to build. momentum just sequentially I think grew to the XX% previous numbers, that grew to XX% think point okay? sequentially at to I is when expect enterprise PE peak, think me, XX% I and think So still are the about grew I

are was continue. And I running still the previous we think XXXX. peak I to somewhere in the expect year that momentum that below

TI, sockets supply cycle. I some enough short before, in these as we job the when And inventory, go these were, previous now have think where also, okay? we I markets up mentioned in are and back for the cases, and to it's specifically our address

Tom? Follow on,

during both industrial I and peers Yes. think saw pandemic, and growth, lot And started as auto a kind you most describing the vocal of yourself growers. then just broadly, being and double-digit of more of about your

And that's of X their contributes growth of obviously growth in a as correction well. this strength have the looking still as obviously, double-digit restate that profiles think that right the you part to you those now as those double-digit that you recovery, broader at businesses? But coming Do going competitors business see the your of any kind up as businesses? You weeks the seeing auto to couple look China CAGRs X to So of differently about long-term continues, of the way see profile in growth. you're back a from your business. and would kind

is term, it, short the that it's I cycle again, talk the I and the I the current in will on about the yes, automotive I X even short see same. all see we term. will years. side is And Yes. When answer to think that XX say proving short

the is multi growth think I in industrial decades.

or the are it, we on beginning the, in call very very, innings. think we're the sectors of only industrial, some in early I -- in

TI think I XXXX. last So XX% know the to industrial and decade, digit, say don't but XXXX think double -- the grew in you if I I

it XX% market single guess. a lower than But would little maybe high that, a to the call be would guess. bit be may think I I good

vehicle. decades, it's it's and okay? certain TI of point I of think don't not for don't -- multiple going of to now, saturation market this I content think in automotive in for some think I run helps. date close the faster. are sort to At kind going per there of the specifically to to that we Hopefully, time, I terms also But that think going be market a grew be is decade.

next comes Joe Stanley. of Our Moore the Morgan line question with from

about you Great. various I versus characterize that. dragging I of could And areas correction there inventory industrial. subsegments Are wonder the of talked is an But if help any underneath down? strength? And you've issues that that's know sense business that demand just of kind are uniform? inventory there of

Yes, Joe, great question. of I mean I and the all think we industrial they have a in decline more add up than quarter XX third the to sectors, about continuous XX sectors overall, the since 'XX. --

So eighth it's of the quarter decline.

but We medical, sector us areas automation, kind of -- kind for hovering are would large and at building for the us. I at the okay? infrastructure, that we bottom. On seeing think characterize like a found still bottom, -- that seeing about are bottom, of hovering sectors are the automation, it's -- have And of most energy are factory

factory type factory motor and about think can automation seeing drive, You and this a plants, we automation decline. still of all it's process are

they not early, right? market there. power the rack. the delivery, in And Think some that bottom. And recovery of we've found have do. So and Appliances some strength have people it couple Appliances, then industrial. a declined very add, at see the areas. you main the our seen So we of also in We I don't would it, have sits is server, delivery. bottom case, about power

over are X XX. these But the out of So growth we only see there.

in the provides color. hopefully, market, weakness more that industrial overall So

on, follow Joe? a have You

That's do. helpful. I Yes,

characterize a the embedded terms if it's narrower about versus happening there's In to around focus I basis while, a on of I that area. sequential has just then kind embedded turning there's you analog for -- that that's a market a And embedded, focus different on underperformed. a wonder been know could what's of weaker?

start I'll strategically. Yes,

on progress about We say, in and pleased is embedded. are visibility, Embedded seeing think higher this very design-ins, its are more more, broad. I AUPs we less with the would

the are look And we momentum like they -- customers, but the when year kind they going look about process through exactly it's has excited we cyclical I Analog future. we progress, of the are when with a think So team later. at a are at done,

the embedded business automotive. They've industrial versus digits. is -- XX% and analog almost versus business declined that So industrial in XXXX again, double growth seen the

So We've of Analog, they a X of think seen after kind year 'XX. about almost started middle quarters.

think is the there. excited looking there the quarter at strong, I I'm future they seasonal in QX, also are and but momentum about

Our comes Stein from Truist next line with Securities. the William of question

think months. Haviv, earlier you accelerate on talk things decelerate. about a was there's then wonder any have seen end the you that please. call, the or to I if can of it markets, I'm only might of asked, the for hoping progressed question last X the answered pacing couple but in orders X surprised If you you? I of have have then And been downs and follow-up, sort ups I how

Yes.

lot see it there I out the think see If -- is versus effect. we've there think going it's I there's but fourth, see what think but any I we I I change don't anything. we that a is seasonality In right that out, you into call right? -- quarter, call about if a change what it cannot I of said third not would would I have about the -- QX. QX, -- we So something, sense, now in seen

Dave, do or... anything you the want to add on order

rates, which normally, behaving Yes, in think, each quarter, is they increased very order the typical. month I were

any large or see or deceleration didn't that we drop-offs and front. acceleration So on

to mentioned. Will, good that service levels Rafael as built maybe inventory that, just have on add a of we just reminder And

are Our low. lead very times

when of are I real kind parts take or business now. a they a get building call of only business it time have they inventory. turn don't think they right who And visibility people don't comes, lot customers -- we it as also So simply of ton so need -- it. we

that's we cannot Dave the color what So said. beyond that more provide reason

a have follow you Do on?

with I follow-on, it placing Yes, even more have inventory, your is be all And can if which backlog. inventory up have charged you customers when all the they may not dovetails so. actually follow up, when about tons of

really at of either suppliers provide that to inventory wonder that of recently the revealed or digestion than insight close they sees inventory have like you I TI more customers as many checks And customers. sort dispel not if thought could it? end Our the end were any

maybe a interest and the answer Yes. high a inventory we that's mean, we have means our we want think, not up the cycle, level, I I'll high I to service, in. our only visibility as that don't do at want strong, down levels. are there know, away our chime you want and said, through desire lot I into it but year. also that don't inventory build decisions. when Rafael customers shelves, capital customers' Dave, rates where the level is end next burden especially allocation capacity do of all to take and cycle. the us, to is look, the inventory can of be. We to up from and that's in as customer our and the just of general, of game at our But position we play drives to in what think we inventory, cycle, at that's want preparation to Hence, the

anything have specific about Dave inventory? the customer

Yes.

for is don't low, we very point but able the inventory. essentially healthy that that position when operating to want means keeping the customers orders on to I you we're ready comes. upturn to be place be made think and that have from That a it visibility

lead our of XX well below weeks today. many Yes, times are

them. customer have the part, when mean, I and need for we service it it call provide, customers I excellent we So

Will, you, caller, go we'll please. our and Thank to last Great.

line question with Stifel. from Tore Svanberg of last the our And comes

it a and from it on industrial Obviously, market follow-up that lead is fair you times an say sell-through I'm a wondering the stabilize, that I know read have market. further had Is question better inventory. market end short are or to Is those end that worse? you or it actually to on getting called X just better? And perspective, segments are I but stabilizing? they're starting perhaps consumption, any getting getting the out worse? is

Yes.

Just Tore, for to what just -- I the -- question. thanks repeat

X we've at I okay? would grow, didn't. hovering more for because or I you say I an So mean, hovering call like example, most what less, would I QX, or now say it QX is or the or in sectors repeating seasonality said, would it are same seen think there correction industrial not. inventory level, -- of that Just quarters, there the and X

my sectors for color some Tore. perspective. say have which that are stabilized So these is the added, at for large only can the was that this TI, a do the my -- and for TI. motor say not argue I customers. that And remarks. But at that's that I drive, will of automation from factory least, believe is automation sector will there you reason only and this other revenue correction that kind done is prepared they That inventory I I've on

And know, I to Dave, here? anything add don't

good. that's Tore? Do think have you I a on, follow

Yes, just last one question.

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concludes today's this And conference.

participation. at time. You your this your for may disconnect lines you Thank