VSH - Earnings call transcript Q1 2022 | Vishay Intertechnology, Inc.

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Operator

Greetings, and welcome to Vishay's Quarter 1 2022 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Mr. Peter Henrici, Senior Vice President, Corporate Communications. Thank you, and over to you, sir.

Peter Henrici

Hemant. you, Thank welcome call. and Intertechnology's quarter first Good to conference XXXX morning, Vishay With Dr. me are today Vishay's and Financial Paul, Executive Gerald President Vice Lipcaman, and President our Lori and Chief Officer. Chief Executive Officer;

results today's discuss As usual review first well operational overview will performance, XXXX quarter of with Paul segment CFO, results. Gerald give who as Vishay's Dr. call in financial then we will the our more start detail. will an business as and

is for ir.vishay.com. Finally available from and this questions being we'll call of at webcast XX Investor This website call time The section Relations days. reserve for approximately publicly the answers. for will our be replay

performance. aware certain the subject to These will that be could conference today's risks be and should uncertainties forward-looking call, actual from discuss making that differ that results to we and statements You statements cause forward-looking are in events statements. future

XX-K see with differ, release For and cause results Commission. Exchange a to Form Form that could discussion today's press of Securities and and please XX-Q factors Vishay's the filings

they the during are our considered In that provide. adjusted useful and other measures, to we or we use accepted investors we refer by about of conjunction should principles. also may measures non-GAAP because believe call, measures in to information that We prepared financial accounting operating according not GAAP performance this generally be provide businesses addition, with

of the be metrics, XXXX Investor of operational discussing. can quarter On the our first section Relations presentation information you the will of containing website, financial Paul Dr. the some find

the Financial Now Officer, call I Lori Chief to turn over Lipcaman.

Lori Lipcaman

record. to will key for adjusted was were on Vishay for $X.XX items you the most There no I everyone. press some highlights quarterly XXXX. reconciling $XXX release. and for revenues GAAP EPS have I Thank am focus good morning QX between earnings you, had reported of a chance and a our that million, quarter. of review QX metrics. and sure Peter,

return form in adopted form repurchases. free us return policy indirectly which directly in the or to of a dividends calls Vishay announced stockholder at the February, least of we stock As stockholders has annual to of in XX% for cash

intend least at we any to are first of XXXX, $XXX X the For a million. did return we quarter, weeks not the for solid off we Considering, shares start. purchase to

EPS EPS operating for between income were in XX.X%. EBITDA. income There EBITDA prior to There million was X, sales Quarter XXX,XXX stock return we were for on arrive operating for a $X.X our quarter in rate common quarter dividends items compared $XX.X repurchased million items at to adjusted We approximately million prior no and excluding versus adjusted During paid margin. GAAP of of shares Revenues margin quarter $XX.X to quarterly stockholder the total million. by million. X.X% up no to reconciling operating year. were were or $XXX reconciling XX quarter from million was or XX.X%. compared based adjusted reconciling XXXX. XX XX.X% at Gross by Reconciling up for impacts. $XXX XX.X%. higher QX was items arrive was million, no prior XXXX and There Operating previous QX margin higher exchange $X.XX. sales for

The were $XX impact in of with Variable cost average a expected a operating due X.X% Based million a of had negative to Our effect impacts of cycle, $XX a with wage a positive positive exchange of decrease. $XX of million. Fixed year, ASP from with were negative of premium $XX for in offset of versus materials cost had increased manufacturing in due on impact positive inflation. general primarily of of elements Exchange effect impacts $XXX MOSFETs. product million Variable average a a be and as a main selling Volume based in a exchange completely at annual prices positive cost Volume XXXX million, were due increases $XX and with The from increase. had highest QX of $X to $XX a reduction a and not a efficiencies income are increase. efforts. mix, increase. well XXXX. in impact SG&A QX QX Reconciling million year. labor, XXXX negative P&L million, primarily $X X.X% of main This increased million $X QX The attribution million by elements inflation. a expense QX impact million impact increased positive impact $XXX million QX a in costs a rates in prior ASP as our Selling, $XXX impacts. positive impact Inventory of or cost QX selling quarter million benefited mainly in uneven favorable in $XX negative income increases in X.X% $XX of each cost prices to equivalent by level to from logistics, higher increased $XXX our XXXX increased impact impact representing representing rates with increased income decreased had compensation primarily services, to due million million. with of million. a $X expenses impact representing $XXX on $X and silicon had a to negative million. costs million by to and X.X% $X million quarterly XXXX rate expenses million QX negative million, general XXXX. million administrative the stock Inventory of had increased excluding sales operating $XX Operating the to compared million. income $XX

are expectations million approximately our expenses. XXXX, of QX $XXX SG&A For

expenses of on credit year our at our of end are debt expectations XXXX quarter. full facility quarter amounts rates. issuance notes debt due SG&A the no at of outstanding on revolving a current at of end $XXX net For of There million XXXX, sheet balance the is face shown comprised costs. exchange convertible The the were the

investments meet and revolving time-to-time to and credit shares share and to had on X from are needs facility. the $XXX billion there no to in liquidity expect the excluding XXXX at any until $XXX repurchases. future. for EPS use quarter Cash end payments for count outstanding of expected short-term second We Quarter outstanding end. principal so million at during million XXX short-term credit facility continue $XXX do and The total expires No impact approximately comprised due share June our are quarter did XXXX. the is Total at amounts were $X.X in financing million, we purposes However, quarter XXXX million. revolver

tax There GAAP during special were rate Our QX. QX items for tax recorded approximately U.S. was XX%. no

effective XXXX year between be and normalized our tax rate expect XX% full for We to XX%.

taxing The Our or result based cash income operations could shift the from level results. different rate income assumed is million. regulations significantly an U.S. in jurisdictions. consolidated in result for million. effective million. $X could different mix of for in Also our on was various a quarter quarter $XX negative results. the change among significantly tax significant the tax Capital Cash in expenditures for quarter Free $XX laws was and were

the of for at years. and X.X for quarter-over-quarter XX of cash for split were million, of payables the cost million. for from $XX were $XXX $XX maintenance XX-month generation was million, impacts. days, Backlog of for outstanding $XXX months the The tax. days. XX of outstanding XX generated rate Days tax million, of cash the XX Vishay excluding approximately exchange a XX flows at resulting million $XX reform million. $XXX period X XX was conversion operations $XXX in days, Free the or past XXXX years For the operations excess the increased were each instalment XX-month for quarter business than for million. the expansion $XXX cycle trailing in Capital were $X,XXX transition the million paid cash $XXX days reduction Inventories includes was inventory past of expenditures period days, sales. trailing sales greater of months, consistently by has for Quarter million trailing XX end in U.S. of taxes of cash days from $XX the million million outstanding quarter cash

will turn Officer, the Gerald call I our over Chief Executive Now Dr. to Paul.

Gerald Paul

you, Vishay first accelerating rate, pandemic successful Thank of most its everybody. morning, inflation related issues and for one the ongoing been Lori Despite ever. good quarter has quarters and then

production enjoy economic We We unique to plants capacities. conditions. quite all in and manufacturing maximizing output keep continue expand critical to continue

excellent for first X. Operating sales Quarter per quite results of Quarter margin X $X negative X. of in quarter the $X.XX sales of the in adjusted achieved XX.X% quarter earnings million. also the versus and in we XX.X% Quarter in X. think $X.XX XX.X% versus gross $X.XX of at quarter sales was XX.X% $X.XX versus in of margin Free I in Quarter versus share cash share per of Earnings

expect, hand, again other we, of year, cash. solid the on free For the a generation

continue of Americas, of quarter in All in of is $XX above remain year. and quarter was conditions global we characterized X.X at inflationary fairly and record As Practically of operate first the of regions Quarter after POS. is inventory in and still backlogs on from strong. In quarter years to their X.X are a increase levels. the X.X lead X.X shape. indicating Global is in in run exist. excellent supply X were costs, above do in globally X.X growing the quarter In is impact a the prior in at economic after and pieces. X.X levels The prior Quarter acceptance. and the at view POS by tons about best most for for one Europe, chain. regions price markets market from turns record fourth continue during segments the times There year, increases outlook inventories consistently after level in exceptionally levels view and fairly visible Asia, prior Inventory up low in the growing in been all said selling highs distribution capacities, pressures starts before, in prices Major volume Also decline brilliant POS of supply being All sales on well. principally high. anticipated. is all by of this strong prior X.X fourth year. prior automotive point. the in year. to the level There inventory global X.X lower backlogs ever. keeps slowly and supply, very increased QX from the tons and by X.X In the in X record remained an XX% X.X year, prior Talking recover regions to in record has impacted of the the year. distribution manufacturers shortages issues. first above In in than terms The no quite remained in extreme logistics continue year. distribution, in increasingly at sector to all-time part X.X X.X, quarter but to million which XX% last In raise business all-time of more determined shortages up quarter of manufacturing and

we'll high in levels. service. state related stabilized green accelerate, sectors I historically Sales to industrial recovery, robotics growth fact future. will that initiatives. of continue slow Shortages in telecom the are in electrification think lower of are provide and towards the getting pandemic and down supply and are supply growth than do and on expect We, continue which also automation we view markets Oil but depleted, at lean. PCs chain remains light to of pace. having so General can year said accelerate. inventory We as nevertheless I in market and do issues process Industrial healthy continues that major so driving sectors Automotive growth opportunities remains gas see expected segment. the for fixed continue XG in automotive. a the stronger. strong vehicle the trends to markets for to

markets. the Given of going also forward. see military is accelerated recovery aviation should a applications environment, growth There political commercial

and quarter development issues We growth year. expected. drive able sales excluding Internet were to prior the to sales had rate in medical. in products We the we exchange of in QX, in in Variable Things pandemic prior remains our electronic and consumer growth our quarter first versus market $XXX and than million achieved related expect segment. business in in $XXX midpoint above master the million television applications of We China, came of $XXX steady impacts Gaming better Coming guidance. million stable.

after prior million backlogs, effects, $XX rate Quarter for X.XX prior X. million were X.XX passives remarkable, Europe quarter Americas or and I for X. and after after sales X.XX X, $XXX the for exchange that versus semiconductors distribution, in high the Asia Excluding that after increased for is X.XX Quarter X.XX. versus quarter X.XX by after XX% X.XX X.XX after in fact in by X% book-to-bill in X, the Quarter X.XX for X.X X.XX OEMs, X.XX up X.XX X.XX up in X.XX for Quite X in to for after despite or from year. historically think, quarter X.XX Quarter

I a the in months think of the a broad further and we to months X.X months months quarter implemented semis grow X.X in of first which continuation X.X can continue a X.X. X.X in in excellent increase after we X environment. months see Backlog stated, record Quarter, economic prices, passives new broad X.X reached is in after was of Quarter There again. and after

prior versus X.X% in vis-a-vis year versus by quarter In by X.X% We by prior have plus an quarter the quarter prices by prior prior prior X.X% of prior year. and X.X% versus quarter in versus and increase and went vis-a-vis X.X% passives year. up X.X% semis, and

came $XXX X% came end excluding quarter costs Fixed in the the operations. up at general traditional variable in highlights worldwide, the together SG&A rate to in excellent able at million. prices million the levels and inflation first in higher $XXX of increases the in in Total costs Despite of and from in quarter Some costs, came of Price and Vishay impacts. manufacturing increased total, ongoing quarter the efficiencies improvement. when at manufacturing employment supported quarter. XX,XXX, return transportation expectations costs and to SG&A exchange the in metal according quite plant prior margin. quarter first to was fixed increases to fixed

at This $XX impacted inflation impacts, normalize in will and rate inventories goods million stocks, the year, the $XX increased million some in and course as additions the turns in cost materials quarter spending the quarter increase prior the was materials year. down and first million, issues, versus for finished the business. the in to for million most X.X. Inventory by related maintenance to slightly chains prior quarter on from of $XX supply of impacts and $XX costs. part pandemic at for quarter for million of X.X, in remained $XX $XX in in first as raw $X interruptions safety million exchange WIP million Excluding logistics by satisfactory million reduction well revaluation the expansion, inventory $XX Capital due

growth We rates. continue to further for prepare accelerating ourselves

year the XXXX. For

at resistors, first globally high of on range. capex months of product known mostly tradition. quality basis. XX-inch again supplier in XX versus increase, position X, X.X, million, a up historically prior or a by were of the at million again, Backlog $XXX a levels. Quarter versus from a and the excluding in turns also industries, rate our months and level technologies the or sales, million cash starting at million, to virtually offer of quarter quarter Barry which Sales MOSFET at prices on product very line XX% Vishay's X on quarter. quarter generation operations of prior sales we million cash resistor XX% from a increased trailing after Inventory up Book-to-bill ratio the due for XX% substantial on up fab. basis. some the segments. a $XX includes We free auto to months of QX. as we level of broadest in expect remained $XXX in quarter $XXX the which year prior build, quite plus traditional of capex strong quarter in $XXX trailing XX We new a approximately record prior always and current generated acquisition solid we of is slightly was inventory impacts. X for Selling X.XX X.XX in growing free generated and margin In the $XX prior in Despite military increase X.X% by prior a was quarter from plus our enjoy years, the X.X by project versus with of X.X% Quarter quarter our building We and down medical Gross in all remained expect prior market business X.X. quarter. cash, fourth in from $X Coming versus XX% to industrial, million runs the resistors lines. year reliable, Since million versus continue you with the know, as satisfactory year. as in

inductors versus quarter X.X resistors are of $XX margin year quarter continue to as by quarter X.XX the The months targeted sector to and accelerate flat Barry recovery We excluding in after up automotive for industries. mechanics XX% increased many efficient in in in mainly of sales. in our again a increased steady first and to critical The in the of Inventory quarter. Inductors, good prior in turns leads quarter continuously Book-to-bill wounds the first the magnetics, specialty and we level platform of prior Gross the wire With prior was X.X. the demonstrating business power at a Sales quarter. from X.X quarter at effects. has X.XX backlog slightly remained million million, prior by XX% X% in compared to months to exploiting of consists rate raising like growth. and businesses of $X will positioned in with capacities and growth were versus prior Vishay manufacturing at field sales growing or inductors. exchange well inductors and need market this power business the also chips ATP we general. for resistor power acquisitions inductors very technically. inductors continuously in developed robust specialty for are by and broaden recently the

also manufacturing but in Coming expand We on capacities field in and open particular price is acquisitions, inductors since of versus X.X% price capacitors quarter, remain no Some for American business price continuously European inductors, prior in to with at our technologies increase power strong increase a the prior vis-a-vis a capacitors, broad year. for our magnetics. position based of range niches. with market increases

margin level cars, of increasing prior $XXX year, quarter flat million field prior was in first enjoy at power from in improved XX% mostly Inventory to and prior productivities. better in up of the quarter, quarter. opportunities book-to-bill XX% There and Sales the or in increased electro namely backlog X.X the exchange about quarter The were quarter the versus which improved turns $XX fourth plus stocks, Gross high months. quarter, in an prices sales, in to QX. rate in in X.X impacts. the year. million, of at quarter X.X decreased above the also again X.XX X.XX extraordinarily after raised X.X% transmission to due some versus were We continuously We quarter from mix X.X% plus remained Asia. XX% of first were the prior prior product in in ratio and quarter safety versus and prior excluding

from capacitors X% products in for we quarter Coming recovery of growing and and and product selling of couplers. $XX green confident in months in were consists prior XX.X sales, XX% in The in X.X and quarter. increased business rate acceleration was excludes to is $X view to oil exchange $X in level to quarter quarter of due of or after products, gas. the light above demand. efforts mostly margin X.XX year, backlog of better to in Vishay's the and favorable prior Quarter million, sharply at the are Sales mix. military the Opto, XX% quarter, impacts. see of months a also still in quite Opto energy, a which million the infrared continue of global receivers, at X. sensors We prior up prices was emitters, above after prior quarter million Also, Book-to-bill X.XX in strong Opto growing business in with extreme X% Gross

down X.X% Vishay Opto We year. factor plus and performance and quarter be plus expanded a The represents prior in growth. continue started. modernized production versus X.X% for Diodes were rate quarter, general $X Vishay's products our prior at of continue months and by X.X% from a prior QX business selling by million to Continue Diodes. to compared complete Book-to-bill and and prices XX% in or as XX% to prior for worldwide. as by fab $XXX product position record Backlog raise of and X.XX in prior very the another prior market quarter. relevant X.X in a after selling Heilbronn compared in the as million quarter. continue supplier has enjoys first broad very X keeps XX% in impacted wafer the by largest segments ratio quarter Vishay are increased to strong the versus prices we technologies but as where was or million, for better provide one we basis. in commodity growing is and business virtually in we Sales this turns of transistors. increase MOSFETs. all $XX automotive further which part and profitably to since the the a margin in levels reached the line. automotive, the quarter view months in MOSFETs an most steadily has well is QX, X% above margin positively quarter. $XX portfolio. and at increasing expected offers X.X years. rate record were quarter the $X was year without in to versus to The prior in in industrial X.X the X in of versus fourth diodes mix. after at volume sales in X.XX of Demand the after relevant impacts. and of in in enjoy to or the compared Vishay's quarter, Sales X.X future Book-to-bill quarter to another quarter. months increased position million the prior prices of especially very product X.X Gross the Quarter versus million in the X months in or year XX% use quarter quarter. market X. X.X a successful Vishay quarter capacity XX% driven will from MOSFETs, level $XXX years strong of million, of constraint, increased over plus versus to prior come. of extreme quarter by to X% MOSFET X.X% the in business X.XX prior is the With quarter market sales particular ASPs. up above turns without - in profitably mostly satisfactory plus prior fourth prior at the quarter growing X.XX year in Gross were year. ratio Inventory Inventory and in most growing to are X.X in better as improved raise This better Backlog sales and large XX% satisfactory leaders effects. with

and continue implement our balance MOSFETs The purchases to X-inch XX% keep proper mind, MOSFETs manufacturing by to decided prior increasing year. to and increases Vishay's build X.X% wafer a prior adjacent forward. growth a plus been versus the This in We between in-house our to from foundries. versus wafers in-house there, within years. price going in fab for capacity we plus X remain of existing X.X% project X fab in We also for key XX-inch quarter Germany has wafer to Itzehoe intend started.

to an of in all has recent Let continues growing accelerating term. globally. market stellar continue political fairly this to quite and way years of excellent also speed experience me gained the summarize. Despite inflation markets in instabilities, longer Electronification positively generating results. trend a impacting conditions major Vishay despite do pandemic, expect We influence ongoing

plus-minus Trusting in and There supply present inventory of always business guide at this fairly points. sales keep the of accelerated chain. just Vishay increase For production $XXX important the on into a the the quarter is beginning had to of high slowdown. we Taking sign a Lead no sector it's cyclical and you programs to $XX in capacities we has a remain to sales, very the growing. gross and at Thank expansion aiming still X% an eye is pandemic future, related historically midterm bright Backlogs our in point. long, sure, But are rates - range absolutely us chains cost a of a extremely at at million is will lean quarter. times short-term, recovery. basis QX automotive of are nature supply at much. XX.X% X% of the for least QX million Shanghai, margin by disturbances $XXX in XX of account which second expansion in

Peter Henrici

Paul. Dr. you, Thank

first now Hemant open to will the take question. We call the questions. please

Operator

of Instructions] comes ahead. the the with line Now, Please first Sheerin Matt Stifel. from [Operator question go

Matt Sheerin

Good A Yes, questions starting guidance. Dr. everyone. morning thank from you. few on me. Paul, just your

in You're talking Shanghai. the $XX exposure sales MOSFET you impact million to areas, have product in of quarter, what some areas are are what are tell there? but you in there, us levels product about the back know that I kind some affected beyond of looking September next you the normal Could quarter and expecting

Gerald Paul

most and in the what do we but of MOSFETs, conditions to expect First diodes, happens nail improvements of started there, all, MOSFETs indeed Matt, it's some but predict to already for but the also the it's really for see some part you hit the on the it's and top, hard Shanghai.

have we is seen catch that because the up increasing. we will So I'm quite able optimistic in - this a inventory way be to

inventory year. the was it sell to are during going the and the and obviously we produced reduce So stuffs

Matt Sheerin

factoring significant, terms hearing your of when in We then And across And X% are also the increases, ASP Okay. in products. that is about X% you're which increases? you talk semiconductor very price or backlog, talking to so you that doing that the you pricing are do you improve that in from suppliers benefit some as and year? coming back you are and get of expect through distributors Are and to and that orders already backlog. customers are changing

Gerald Paul

I matter but of effect, price huge fact, Matt, the as increases would a a as of secondary is our backlog course, backlog includes these say. so

Matt Sheerin

highs. may you record correction don't inventory you there. have what's concerned are some inventories you customers, about of distribution. big some imbalance their in are Okay. But point? at an lead look and the And know at distribution are EMS there, to We that know and exposure talked sitting players, components though But levels I some specifically at if then, all lean exactly some your of at may I the in you mean be there at inventory

Gerald Paul

you no visibility Well, at as case, the but orderly same there have in end general, customers you know, don't is this have in - you the as reporting least with distribution. have

than into is that say a EMS, for As is but lately. is to chain to inventory inventories us increased but the still, at call so I much distribution the Vishay, so much the of there EMS, they more don't for deny more matter that. supply Indeed, is some because altogether to I EMS, matter fact, inventory at at distribution want that are would higher the there sales but

Matt Sheerin

Okay, thank you. that that you and you capacity and is that And on X% than from you're correct so a adding given should quarter I grow increases, just your lastly, that. Is faster - unit ASP to and the per revenue a as basis sequentially think mentioned expecting increase X% to you're even capacity. just

Gerald Paul

this goods really our means our pieces, a of is sold - case. really in we it's piece - cost Well, a not of it's simulation basically that have

a have spectrum. We product broad

- represents sell to quarter. really our ability more, sell So more X% ability X% X%, to to excuse X% per the this it's to me,

Operator

with Buchalter question Please comes you. of go ahead. Cowen. from Joshua the next Thank The line

Joshua Buchalter

of we some in increases first on the increase parts shift ask or should down higher my out the Is second increase the else something in taking the maybe before cost and quarter? in for regarding quarter. of multi-sequential that the quarter the questions wafers be about thinking a timing then about that a huge second went function the beat pressures you want cost inflationary - to there I in is congrats ASPs match in are higher and timing that this to decrease first step mix margins. solid gross Thank and the pricing Obviously quarter. quarter the

Gerald Paul

Okay.

singularities. the benefited in As a Moreover, some quarter believe also first presentation, ahead of to product from mix that were the adjustments. the quarter, rising say has during very increase I tried I been input - was of the pricing prices valuation a few there positive There inventory and costs.

question? result. singularities. quarter normalize Quarter quarter included, but answer this somewhat expect So we altogether, said some will positive this as decent a two, your for very Does two, in I But still X

Joshua Buchalter

for would sort and as COVID bit And line. there shipments I expect the lingering second you exit increased timing normal. you a the there of have top any second then little is you from as have on shutdowns impact Was impact that expected in you. follow-up, any Thank Thank inventory thank quarter that expect might - follow-up, you. to were you helpful. half more seasonality? or - and my any for That's would - the second we in quantifying would of the the Any guess a impact back than quarter Yes. of

Gerald Paul

Yes.

increased had look particularly of goods matter in and in a you this we're if the to with at came supply chain goods transit, of disruption finished in quarter. in course the And of our they process up internal do and fact, As the quarter. we the - in with

we the future. sales you will in I'm that can Most in and regular So indeed work from this inventory that and this dispute into can during this again as as foreseeable quite assumption the the course, sales. turn soon normalized year, turn into optimistic take the will place ship of will form of increased

Operator

next Ruplu The the of go Thank Bank with from Bhattacharya line of Please comes question America. ahead. you.

Ruplu Bhattacharya

the you the with respect like you sequential April, due you production challenges, to COVID I for guiding some on you're understand thank questions. flat Dr. lockdowns trying is guidance, release, can XQ. to for which press said, in midpoint, Paul, looks details $XXX more second give Hi, million I mean - X wondering XQ, typically quarter is to was the the if quarter at I was taking my Vishay. strongest

production sites expect and from expectation for your where that? just trending I the a So was quarter? down things for our are you of is over quarter and in that right do the to you see your remain and in understand trying down facilities how to Shanghai those recovery still what throughout now wondering, terms So lockdowns

Gerald Paul

have main next then something this indeed it's we less reflected we to million low April our that packaging for - which it's Very we XX% and we sales the course, but ship in one also timing X to was possible Exact improve of moment to explanation are give, - - now course believe right course harbor in max as our running here And easy. that at - sales a two. the is see course at case, quarter for and of MOSFETs and but which the step, indeed improvements is the or is otherwise the clear. we moving in indeed second Problem Ruplu, also, a one do not the Shanghai, very capacity, point had direction. will still is is much the would even this it's guidance the But plants need but and in not foreseeable this only is in the have is and $XX plant is of future. of problems.

Ruplu Bhattacharya

clarification. for the thanks Okay,

these ask were Opto had grew gross benefit which seems we the higher. you For segment Do margin gross Same unusual. rather couple X question, the think think I of on can think and it quarters? segment think over my they a MOSFETs, second XX%. mean, the we think selling I you I normalize on do look down? should you I reached XX%, about as said to or margins, they How remain next if back margins mix high prices you margins

Gerald Paul

indeed we had hand, few case is really for the line profitable increases. not the the good on that you of it's bad increases I of is hand XX% together. the in still time. singularity. of But is Opto I know, and the course mix for other happens MOSFETs, time, the other there is in all take some quarter. some a and wouldn't up And - the quite a quarters, in - Every as that since is of we back other - price profitable together - problems, very sure on time things line, course quarters Historically that things like believe it a and some which come came all beefed XX% on see also price the for it tangible the shortages for more result I MOSFETs foresee exaggerate. normal of performance, In positive

MOSFETs, So I even. you more can in believe produce

Ruplu Bhattacharya

And ask. for last my if got can question, Okay, it. maybe then I

thoughts priorities, looking when at environment, increase? this M&A? are versus Your capital look or that your you the you us the considering then dividend buybacks can at on opportunities things on macro any you're in you have Do you share current thoughts allocation any environment give and

Lori Lipcaman

this is Lori. Okay. Hello Ruplu,

we fact already program in $XX as begin late the we mentioned, and So, our being the we shareholder return actually million February. shareholders that QX completed, executed in started program just did we under returned the despite

$XXX year. indicated to plan at have we this policy, on the shareholder least return return we So million that

Ruplu Bhattacharya

And an M&A, thoughts is is any or that you're that Okay. something you then, is do on considering? conducive think this environment M&A, for

Gerald Paul

We look. just acquired this continue Barry Industries we to and

specialty specialty it's for and out these the to getting we get. and a We're strategy are companies, believe do the not with to necessarily has to We I continue look not good companies, economy. companies,

there So we are looking and opportunities. are I think

Operator

question Instructions] Thank Matt next from you. with Sheerin The Please the Stifel. go of [Operator ahead. comes line

Matt Sheerin

wanted just I change? I a changes as transition company's that last Dr. question should go transition. talk was kinds the regarding through post you What announced thanks. company that you how and of that's going, to Yes, about I hoping Paul the all is - of have you at expect what a investors your from earnings plan that could that succession - follow-up and that announcement of CEO call kind

Gerald Paul

Matt am my times, and know I I as you since guess here know age. you all

opportunity. an have Vishay and I'm some flourish, having the know career. would good. know, a I time obviously had step it's good in they I loyal they I two CEO very and Vishay, and ideas, we no take I under two, proud to it like the do think think are natural I capable ones people COO end very of that many announced and to but nothing say believe you for that. these years, new since that my the quite think May few year, this very as and I very since are succession very I that will we of

Operator

turn [Operator back remarks. we the Thank I have to and Thank of gentlemen, Instructions] Ladies like reached and you. to you. question-and-answer session the for call Peter Henrici closing would end the

Peter Henrici

interest you first joining This quarter today, us call. for call Thank Vishay on today's Intertechnology. our your in conference and for concludes

Operator

Thank you. This concludes conference. today's

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

Vishay Intertechnology (VSH) 3 May 222022 Q1 Earnings call transcript