ON - Earnings call transcript Q4 2020 | ON Semiconductor Corporation

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the ON Semiconductor Fourth Quarter 2020 Earnings Conference Call. At this time, all participants are in a listen-only mode. [Operator Instructions] I would now like to hand the conference over to one of your speakers today, Parag Agarwal, Vice President of Corporate Development and Investor Relations. Sir, please go ahead.

Parag Agarwal

Thank you, Michelle. you results ON conference thank quarter Corporation's and quarterly XXXX call. morning for Semiconductor joining fourth Good I'm joined today CEO; and by Hassane El-Khoury, Gutmann, CFO. our our Bernard President and of on This being the our Web Investor call site, webcast Relations is www.onsemi.com. at section conference with conference webcast, release, available recorded available will call, call. Web and of our fourth one approximately for be XXXX days be along a replay quarter our approximately following A hour on site this earnings will following this XX this webcast

to on related segments, channels, site. information business Additional our calendars geographies, share end-markets, fiscal XXXX are count, our and also posted Web

Our our earnings directly and presentation release, separately posted earnings most are Web comparable non-GAAP these financial include certain GAAP release which Reconciliations in section. is of measures. Relations the our the this Investor measures on measures in to site included financial under non-GAAP also

XX-K, events to affect our Important forward-looking uncertainties could subject results or XX-Qs from differ and factors are other actual from Form call, to Exchange business, of that and words the expressions "may," the forward-looking "plan," future similar are Securities are regarding course our that wish this materially statements, results in the "should," statements. identify to statements "expect," of intended including factors During company. We cause will and differ our actual performance conference other to that filings or can caution "anticipate," forward-looking or make Form "intend," statements our Commission. risks projections. "estimate," "project," financial which such with the or projections could events "will," described we to future "believe," The cause

fourth our XXXX. earnings Additional of factors quarter are release for in the described

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

our Analyst the We for Day. have changed date

to instead on Xth X, plan March of Day Analyst host of we this year X. Now, our on August

form view leadership strategy -- financial the that our able completed a of we in recent the and company, targets will X. believe need updated be of will provide we change With August we of and to

to Now, Hassane. Hassane? let it turn me over

Hassane El-Khouryernard

now, a operational highly and Thank for the a [Ph] by you few see channels, can by of on workforce, to joining process we potential want call XXXX we start CEO at guidance. from address observations and I intellectual I quarter everyone over the updating talented how have use start company. am industry-leading I strategy company to motivated then turn part clearly its fourth to as will expressing you, few. because assets, be I to role the will and could role the to products, you months the been incredibly Having outside. company with the talented workforce. excited sales this thank took in relationships, for brand, I Parag, see us to and sharing with Bernard direction I a it and and and you outstanding our even today. the will forward-looking the [solid] and customer as a I including initial future name of evolve discuss financials prowess, a I and property, results, looked the tremendous motivated

of the customers, We value shareholders, our the in are potential. margin focused on with am front are end I the have growing employees. us solid opportunities right markets maximize we to markets the about fastest which semiconductor and excited for

expectations, markets, answers company following the however, be, to through August. the able positively will to company we exceed I should this opportunities to working gross execution strategy you to process As to you my I'm details in will walk have we will potential with and others. of have plan. credible increasingly a very deeper value At our surprise opportunistic be last growth over-market Analyst the all as I direction I in will initiative. a from the while these aim revenue bullish front It the able confident turn that stakeholders. into our no what surprised, At primary don't come that been at eight will am to share our in far the our with and I maintain of get this we our future be of be dove the time, weeks into expansion and during the team in full come time, about driver with there our strategic the opportunities I the being prospects. Day, initial and to margin grown company my have The strategy deliver us

We objective in will our and our flow business, cash balance set us changes strategy, and make free value, consolidator. focus maximizing achieve organization. our of remain on to to To to sheet we are up ready substantial maximizing a de-lever shareholder

of reevaluating current portfolio our investments the process the begun our have We product across board. and

to profile. will have reallocate and away resources had non-differentiated which and We investments products historically from our a businesses, high-margin growth in markets accelerate low margin

to complexity, will and expansion. our After accelerate improve growth investments reduce the efficiencies. realigning strategy, and will down products with organization, double We on and we market our streamline R&D margin

align new footprint our corporate rationalize investment to with and our strategy. will We priorities manufacturing

investments. our Our margins is on in and return volatility manufacturing our maximize primary reduce to goal

Our intend will fab by not loadings. influenced lighter drive are in footprint our heavily which and to model We manufacturing fab investments. transition product our as margins a strategy our to capital

already in period As can running, time. hit have you making progress short the ground are of we tell, and a we

August provide we the and to provide to our at into will continue on targets strategy X. make you updates meantime, Day, Analyst In We as plan our we greater progress. insight with

far on surge conditions, the the is $X.XX in broad-based thus improvement quarter continued billion, improvement in Now, quarter. economic we demand the results, demand the trends had quarter, X% quarter. moving current in demand in and fourth macro macro a the expect momentum in saw and outlook, automotive global current market XXXX We an to the market on driven year-over-year. The end a above-seasonal was quarter the to fourth revenue for increase near-term. XXXX trends of and the has of fourth lean steep the channel global see continue demand and Based in The to recovery inventories. end fourth steepest by in

we On manage the been our able supply far. thus requirements to products side, have for customers'

imbalance As semiconductor and supply-demand quarters. vendors customers demand temporary few increase subside a pent-up in fulfill supply the should

a $XXX our X% increase million, end of an of a automotive Revenue QX represented discuss of from highlights record and starting with XXXX and revenue me the key markets, XXXX. was Let in our XX% QX for strategic automotive. few market of

declined significant year-over-year revenue outperformed for which declined automotive content XXXX was automotive by products increasing the but over fastest-growing Our period. The unit automotive market. the production by same and applications the driven outperformance XX% X.X% our significantly XXXX in global by

win on We viewing platforms. and sockets won of continues funnel design expand. recently ADAS the to many announced Our

also for OEM. We our automotive a a secured win with LiDAR products European

expect ramp this win year. We to this later

during in-vehicle the was which features for quarter tier fourth for significant a with integrated pocket application. X major a a package our sensor in experience Another design lens sensor module

models In military, production strong and aerospace, the for for XX% customer. our $XXX industrial for to revenue electric by ramp driven related our continue modules see contributed various at product going broad-based industrial XXXX silicon see increase end XXXX of industrial medical, of partially fourth and in revenue market, the increased XXXX. IGBT and with continue issues pickup alternative vehicles, and to million expect to revenue power in quarter revenue. X%, strong We applications. our geopolitical our which strong and our includes of in The was momentum EV-related carbide to specific a global energy end momentum we Year-over-year, market, quarter by activity, by see this in fourth offset industrial

for in alternative by semiconductor Our has energy power base approximately expanded customer XXXX. and XX%

focused this to U.S. see as emissions. the in expect business carbon global is in strong on reduction We the growth administration

expenditure strong our We growth carriers. are machine vision we strong capital XG image by communications traction end factory of by family for seeing market, exit automation XXXX expect with in increased applications our driven In revenue the XG-related XGS sensors. for

to call on financials provide the turn additional to will I guidance. and Bernard Now, over Bernard? our details

Bernard Gutmann

Thank you, Hassane.

increase saw activity. macroeconomic in company. is robust drive to customers driven the secular the in in as end replenishing trends continuing ramping sharply recovery to meet most across automotive, in strategic quarter conditions, for and recovery strong continue by markets improvement XXXX, are industrial, and in demand. priority economic broad-based accelerated with production end Gross market Along growth mega the of the During activity inventory we primary the margin fourth power global markets Order our cloud business business. conditions steep

growth. and is As in margin portfolio. detailed a going our The capital drive expansion to are indicated his do remarks, review product our of objective we to reallocate to primary Hassane

Our support our business. investments revised needed other resources product strategy will expenditures and capital determine to in the

our with through progress you the we process. update as go will We

We and Niigata, are are various sales Belgium fabs our ongoing in parties regarding and on our intended track the previously discussions of announced Japan. win consolidations with manufacturing with

our to the savings in begin XXXX. York, million first realize closed annual $XX have the should of sold operations in We we fab Rochester, and and starting New of quarter

of diluted in quarter and compared quarter XXXX. compared market. driven the in was GAAP per in decline of provide to Total The diluted $X.XX increase XXXX. manufacturing me net XXXX. a quarter results. to by fourth was as margin billion fourth our the in in of $X.XX XX.X% weakening strategic of facilities. income the the revenue we $X.XX was primarily year-over-year billion, quarter XXXX diluted let of fourth fourth U.S. gross of in as as end by for margin non-GAAP XXXX fourth the increase Now, for driven of dollar $X.XX an regions were share against gross of additional you most income per per growth revenue year-over-year share share was our share, the revenue GAAP The quarter currencies X% $X.XX XXXX. was Non-GAAP operate XXXX key XX.X% fourth to fourth quarter net our which the income fourth in for in compared the as to $X.XX for a of details of quarter on diluted in quarter net per compared

Our of the X.X% of fourth quarter the XXXX XXXX. margin GAAP to as quarter XX.X% for fourth in operating was compared

in expenses to fourth million $XXX.X for by in margin compared quarter driven fourth of XXXX. operating of fourth as The to cash XXXX year-over-year of decrease XXXX XX.X%, primarily of quarter operating quarter million cash to lower was expenses was and The million were expenditures $XXX.X despite flow operating quarter operating to were X%. Our measures was the compared which in the saving by million million. quarter increase revenue. flow flow $XXX.X non-GAAP XXXX. cost million, $XXX the largely year-over-year XXXX. fourth fourth $XXX.X in non-GAAP million GAAP was operating XXXX the compared operating of expenses margin as increased $XXX was for fourth $XXX were XXXX Non-GAAP intensity company. XXXX cash for XX.X% the fourth and for the in of XXXX the quarter $XXX a X% expenses. of million driven the Capital quarter operating restructuring million by $XXX.X XXXX, of Full-year to quarter capital undertaken as a equates in from Fourth decline

to decline XXXX third indicated exited we're of expenditures quarter millimeters million. XXXX cash our Total level to of principle distribution in fourth enabling range the the capital fourth XXXX of inventories time, billion with with as comfortable quarter We primarily end convertible expenditures XXX most our channels quarter of In XX maturity as the quarter XXX increased of inventory. of As sheet the At December cash the end the note this XX XXXX. the quarter in compared XXXX billion $X.XXX inventory are balance fourth to repayment the of through of at the in to inventory hand weeks. compared down XX equivalents of of the previously, East XXXX. or were balance At target days significantly of $X.XXX Fishkill on for capability directing XXX at our fab. XXXX, our within cash The and was distribution at marginally of XXXX. of were related the days sales days, worth capital Distribution decrease third $XXX our we're quarter-over-quarter.

or business $XXX Solutions or provide was Advanced for with fourth update the by starting the Revenue Now Revenue fourth million Group Group PSG our ASG PSG. let $XXX performance million. for on was was and me quarter you Power an ISG for $XXX Group for for the Solutions million. Sensing Intelligence revenue the or units quarter

of total ON and $X.XX quarter levels, the billion guidance in levels, we anticipate Moving the backlog revenue will events, based of to product in Semiconductor first bookings on range estimated to on the XXXX. turn $X.XX billion be

the XX.X% we and GAAP margin and non-GAAP XX.X%. expect gross first quarter XXXX, For of between

of for We expenses million first expect $XXX GAAP $XXX total operating XXXX to of the quarter million.

the to $XX Our an are to GAAP be operating $XX million impairments expenses and other manageable amortization charges, expected as the include restructuring be million which will range. in

is quarter expenses, in the financial million earnings prepared calls was the variable million expenses in strong We to operating first quarter anticipation and million The the increase a expect line $XX compensation with last in total $XXX from to compared those our of group of GAAP in the expected in in the component quarter. our to expenses not remarks. variable the significant. fourth operating XXXX by $XX as increase operating compensation in performance expected $XXX loan million first XXXX, foreshadow In is the or driven quarter

For including interest net non-cash cash expected for million paid to and which other expense first million. million. GAAP income will an of interest of including be to the quarter expense non-GAAP taxes of anticipate will of XXXX, an other quarter be expenses expense XXXX be anticipate $XX expense first the our $XX includes income we $XX million. in of $XX expense expense income $XX $XX net $XX the interest is the We to to Net in and

expect in for of the taxes to we cash XXXX, For to million. $XX paid $XX rage be income

XXXX. first $XX expect million We of quarter $XXX capital expenditures in total to of the

in XXXX. financial of approximately million measures. expense. This which, $X in share-based in expected $XX included is to the expect cost And million quarter sold. $XX to in first goods is of expected remaining Of We our be be amount the of compensation to expense non-GAAP operating is

our share Our million expected to quarter diluted on first price. XXX current shares to count based be stock GAAP for XXX of the XXXX is

share share XXXX per XX-Q count for like earnings are I to details note. the comments reports on XX-K quarterly provided price. my annual expected personal calculations share our Form non-GAAP Form on million XXX is count a of stock shares Further quarter on Our end on current diluted to based first respectively. be our in regularly would and and and

its ON decided I for all Semiconductor predecessor employers, shareholders, all are honor these its you and over XX truly to sever have have and enjoyed As you after and aware, company company. years. retire customers years. been all has an of with It to with years the the I interacting

company session. me kept Michelle, helped toes like please have always that, to significant at And on the a With to the value to customers, Q&A my deliver And You has strive me very my I bright Thank questions. better employees. and well-positioned open to do the shareholders, and line job. ON Semiconductor is would start for future. its you.

Operator

the Instructions] Seymore comes [Operator from of with Bank. first you. Thank Deutsche Our question line Ross

Please open. Your line is go ahead.

Ross Seymore

Hey, questions. guys, ask letting thanks the for me

Hassane. with working My great Bernard, all for retirement. First, is question congrats years, you on first the the

actions exceedingly of wondered the levels structurally you balancing meeting side are gross know for in detailed but side. are how the margin into company, I versus the are not list August, going a laundry operating analyst mentioned going you you margin OpEx I take before and You to the

You mentioned priority the for on versus do R&D. down the How you doubling the company? about margin operating gross balance margin

Hassane El-Khoury

Ross. Sure,

going creating high-level, the started like the are or you about don't give low stop. we down. are it of flip a re-invest, not, doubling for how and double that those to the are At to we doing markets margin meaning, about going think beyond going say we down businesses And markets, OpEx we and has I release working us it capital it work. been as whether to where approach up we not are investments are you that that's products self-funding, is as dabble, or on don't That's and because to if our to strategic levels. me Let kind think to can going

OpEx. and for And reallocate to our going we way run the removing release that's lot going and to to a capital are here, of reinvest. simplicity We actually us operations the more with complexity

while that obviously margin having about our can worried below OpEx, drive investments not enough at favorably. am operating I or which we So, will our reallocate, maintaining

Ross Seymore

or the get comment that's details, seasonally, first guidance the you or bit. you to guidance for quarter? one for either Any to a Thanks it is that? than just guess going about Hassane. better-than-seasonal between Bernard, for longer than different continue to for I the said And segments Was your better the quarter, first the was the color

Hassane El-Khoury

This Hassane Yes. is again.

supply out the right focus is inventory, customers we lean Our both a coming now very first Obviously, and chain. the in quarter. are our of

supply we'll seasonal. the are of and cautiously rest may prepared the stabilize strength the to a and point. way, we of automotive, in rest that a that's is of of and it's clarity. seen too that's is news, about but at rebound we marks big kind lot a you've year market the we a get So, the than call bit for coming little seeing the same a if In this few demand remain optimistic more Obviously, market a to year, it and the better talked QX focus I when the situation, soon take which us. for quarters it from

supply-demand until it imbalance. but remain I So we're the out closely, optimistic we of cautiously trend watching get of

Ross Seymore

Thank you.

Operator

you. Thank Citi. with of from next our And comes the question Danely line Chris

ahead. Your line open. is go Please

Chris Danely

for trend the everybody versus is congratulations just of this or OpEx after Hey, is of question on consider this? process -- jealous. it upturn upfront front guys. what's I an Bernard baseline as should OpEx. the all, thought down of we And to guess the [indiscernible], in afterwards? I'm Thanks, first But new first could this payment

Bernard Gutmann

annual accrual actually we it book an numbers. February, an year, next accrual, not is in plan an cash-wise we achieve the accounting have is which it basis So as upfront payment, an if

creating plan. this to just accounting new we delivering So that accrual is an liability the recognizing lead with are the results

Hassane El-Khoury

just in that the stake Yes, me put ground. let

are We performance. XXX% focused pay on for

throughout in year, don't far have like employees until period accrue first year. We is for just after in any as performance XXXX time fact. the did prior form any payment But validated. in after as planning it the the so pay the quarter, to do advanced the We and occur will done this it's to

Chris Danely

Great. And then…

Bernard Gutmann

be trend after should question on about step speakers]… function your pretty have much [multiple And we To we it steady believe the that -- OpEx, increase. fairly

Chris Danely

Bernard. to take low-margin you hey, guess great. at look I for going we a Hassane, product of that's mentioned Okay, sort And revenue my percentage about you're what there product are as lines? what follow-up, talking sort can some have? far Thanks, some being targeted guys the like is these lines. or of on of of rough products types any lines, are you light IGBTs And product you passive low-margin or is these it shed as MOSFETs other

Hassane El-Khoury

tell far looking strategic give our the strategic to gross to am look Sure. to our really growth in end that and alignment as for alignment at both set the to a target, as is at margin everything. market, It's it percent, alignment company, strategic soon too because revenue. expansion to and I But literally want I to you way margin the we

But that, as family. percent be it's how So, I'll you it's just kind, a looking example. expecting to it because we're much you to effect not put an going whatever a not of on were or like give at product to IGBT is or tell. hard

going us. love EVs; market. for going IGBT product growth That's goes a and margin be market, it's that. market that consumer, obviously be investment But and That's into I a is very growth and us. an for that that to We to a we in have low good position have margin, good a not IGBTs

right the we order we the talked proceeding surgical balance that's actually So to are in about already. approach get

Chris Danely

that makes it, sense. Got guys. Thanks,

Hassane El-Khoury

you. Thank

Operator

comes Thank the you. Toshiya Goldman line with Hari And from our next of question Sachs.

Your line go is ahead. Please open.

Toshiya Hari

are of business outlook Hassane, addressing the demand guys six lead demand, your much the talked for the pricing can so versus months four seen business months Bernard, very three you addressing you Thanks sort next times pretty morning. about have you speak in you the related over guys to your is to you all for to what in question. But far Good to ago, successful And where so thank being six past how ago? relation few help. that, over for far. years? today the And for months taking

Bernard Gutmann

inching me been lead let in address have They mid-teens, still moving so are the but upwards direction. they times, in And up.

Hassane El-Khoury

that Yes, chain for we of Obviously, working where our the from we incurred and down we there those we course, are and with increases from There, see healthy pricing a the customers on are. environment. supply pass chain, to pricing, are supply price was supply demand. have

bit our We not it's supply doing always We reviewing and [reiterate] a And on and it's -- speak. higher products, products as that pricing not margin. we're a we let those demand. posture, high-value have only and are me do high-value just [Ph] just the little demand

reviewing where as that credibly tangible to I'm because that the company. us the and our land should the as as that's all to can to give the it's I something far and to be in us impact. you you, So going from demand, that's that's pricing process talk of structural see runway and will meeting, me disciple that see change establish August enough get going implementing supply result in we're just to a going Where moving outside and forward

Toshiya Hari

a gross Analyst look And put up you're appreciate on just day, you. at their there is that XX% your sort OpEx when I the to Keith follow-up, you revenue some and of investor Day, long-term not intensity. last single-digit margin, growth, Again, the XX% Bernard but thank going a model. August numbers of Great, quick mid during preview

is it be margin super most, the you. more growth on both? you've is Thank seen differ your far, where helpful. more Given would on side, is Hassane, side, do views it what it so the the Any

Hassane El-Khoury

only I going my we of talk that to yield does and top that's my is to people be should my already do I'll we the -- Look, here, what and we far the personally, model, me just accountable as we're that because until us stand accountable it's margin, energy where ask in of then you, reiterate available front in company right on and But now. change answer, top though kind number That's gross of the August, I'm and as -- for or And for putting get have a done of about it the timing that even it already just was it and will the the us has all about the is we the model made available now, whatever not line line A looking hold not what financial focus it. to call and it. hold target on externally. quickly company. as financial a XX, lot how we to me of

Toshiya Hari

so much. Thanks

Operator

Thank with from of Needham. And line Gill our Raji next the you. question comes

Your ahead. line go is Please open.

Raji Gill

they years, Bernard, Yes, any Hassane, thank on a happening? millimeter? and progress millimeter, thoughts there that's undergoing are thoughts to And couple new that the that your transition been Hassane, accelerate for and congrats, to you how of you, and on XXX try would is transition what steps that that on luck, the best Are role. to what the be? a question on XXX transition want

Hassane El-Khoury

we XXX a is transition transition a need Obviously as company. millimeter Sure. that a

support -- There's already baseline necessarily it's driven fab multitude a doesn't from, answer a We an over the manufacturing going to portfolio what it have see manufacturing be footprint and how and for investing we're a of to going exactly has be be path that we're we going I until itself fabs to to inch. going It the rationalization. to really to needed driven and that. looking going for internally, have where your we by the it. at portfolio set do, what margin product if part and company address It's -- come inside years, next XX we to it, is need question footprint have insource to the the to outside. I need in five more of obviously the want the in or to the that's know to mean want order a more at we directly, we're have can't do get on

we're doing the on. that's So work on right

However, Fishkill. we the East have do

making where out, only been it, have progress We products some are sampling. on products are taken

it. development And the is with product as that's I technology focus. happy dependent move going associated is to capital product to going ongoing, be I'm and in with into accelerate, that we mentioned, and fab work do, and be give where be are. So an by to with To margin on, time footprint the include financial I yet. I in have the progress we targets. capital which completed That's August in will not it completed manufacturing model and But meeting, the expect updated

Raji Gill

follow-up, And with and or to mentioned two for my those product correct strategies? would maybe about either about me think possible how respect that M&A rationalization through that's you had and -- you the I I Hassane, maybe achieving you wondering talked product and rationalization, if potentially if think divestment, not case. But

Hassane El-Khoury

doing are are the going we'll it's exit the so support strategy, force exit not a top part [indiscernible], short them transition, which solve we'll and and far -- I impact. And value outside a Leading that's with the obviously Sure, it going one we're bring complementary to not be which to we'll you going then the growth mentioned, know, a line de-focusing, of tenet, by to M&A, most impact everything harvest, We're expansion. monetize to -- portfolio our but get UL at on view to end-markets it's the our to The going but not you our the M&A whether that's have that that's most strengthen will is of de-focusing one posture. that those products portfolio, rationalization, any like way instead we be top see divestiture. there engagement put somebody a or for third is use the structured, once just business. these products, what as internal to we'll business that in months M&A We'll If know, conversion, chaos. just of margin growth like or we is just months multiple business able monetize in we then that it there UL through literally after markets. don't We're customer our a is that we're the when We'll M&A you that it, just be customers. Semiconductor, internal us our going that you to within the about exit a to want, transition on up believe to customer, as issues, anywhere creating with that footprint divesting? to as notify then margin portfolio inorganic to Where do you're has a ON from looking six we line. depending talk far would XX going lived, because better are you chaos we of as internal the markets, equally. in rationalize And M&A going we're get

Raji Gill

ton That makes of Congrats, sense. thank you.

Operator

comes our the with question of Matt Ramsay Thank And next Cowen. line from you.

Your line open. is go ahead. Please

Matt Ramsay

morning. But and in script bit fab might about those and mostly you couple a clearly portfolio semiconductor out But much. about incentivizing kind trying I bit folks your interesting talked put right a no will, light. about longer-term secret prodding and lines. in very in thinking Thank August. government to that's you targets that you obviously, little towards the bit manufacturing Thanks product guys because where little you imagine It's R&D are One the taking the the little Good get a are decision. And going. just hint being of ask U.S. But call, inform along questions state. I a of congrats, would a potentially poking is is Bernard. company of more going an to

much question first I channel, second guess is, And inform that around wonder, going the Texans interesting taking how your of going piece decision? is I is then to the more So an direct. strategy

a guys pretty Thank making You How decisions have your in broad footprint. you about thinking are distributor terms going forward? that of you.

Bernard Gutmann

fab made. me tackle comment Sure, I let the light

and So, internal range light an obviously is only between that fab manufacturing. goes analog fabless

we're So where we're going footprint where a today. shrinking to lighter from fab, manufacturing be means we're our which

Obviously, And start the that we're looking foundries are portfolio did And at versus me to in be a we at that's internally to going light was with comment. a that fab parallel change looking do doing. going job do. there result there we rationalization. balance that that that's that's at need be we of a started management So a that manufacturing to And what the manufacture better the occur, effort. to what

So alignment there's or potentially is that and going make at reporting, of with make From that's the in. not That's the the great. going first to value. time. it, If our administration government decisions, our first and politics company end we're from side the based decision we're maximum results That's drives real for the shareholder decision foremost and making. the us that tranche But of could ongoing, otherwise. I current best hinder state to we listen, do the going short-term that where will value achieving that what of on we're decision creation a the

we'll and in portfolio. partner employees. those you figure work focus time. channel our is that just which is to as with shareholder, creation, you And Once the our at been distribution the the how you're you to out our company, then distributors the aggressively and customers on land grow value where going So, want it the From politics and see the know, like to our markets, other we want we in that doing how rationalization market of definitely grow we've how is for to with do best lot Everything is keep same be portfolio dependencies work, can. because strategy. And a that's drive portfolio else And in. but you going that the want starts arena the outcome an to the and execute in you all to really indeed doing strong strategy back play rationalization going to you going portfolio. that's it why, the of interlocked, to to a we're are a it's I

Matt Ramsay

Thanks what very much, guys. the put as Thanks, all to things see best together and excited comes. you

Operator

Vijay our you. from comes with Mizuho. line Rakesh question Thank the And next of

Please Your go line is open. ahead.

Vijay Rakesh

good Yes, guide hi great Hassane Bernard, career. and on and a quarter Bernard here. congratulations

for wins upside automotive the the the have mentioned the then a to XX% I've and above that of some couple side, you module vehicle side. follow-up? is? a market longer-term on still growth X% Just based sensor Or just some you questions, guide, you here pickup on electric on do see and Is your of what automotive wondering,

Bernard Gutmann

level. the current we confirmed And we Yes, with single-digit a above XXXX high performance. it's that basically think actually our

Vijay Rakesh

lean give you six weeks Can level like of inventory? you to inventory three some versus Got comment two four that made on normal a levels us it? is to And like the Hassane, for inventory weeks Thanks. here?

Hassane El-Khoury

them have of a Yes, need it to are fair. now, right because going not so and obviously more be others. inventory of And here looking Vijay, than at there's outs I some be a can't ins target to all created equal, give you we lot I'm businesses

before, moves a to and of figure inventory, manage there's be but we put we some out, I bridge get and the to fab ins some As to model. such, as going our before or for in we few it bumps make, to build outs that's EOL, kind road we're going our as mentioned going that to need a

about August to end-up and really ready be portfolio it's a model to be to opportunistic in order I company, shift in be where whether where to quickly do But or to footprint. I'll want give you meeting. as then, we now a So we the going to manufacturing I'm what to want us need between

Vijay Rakesh

Got thanks. it,

Operator

of Harsh Thank you. from next Sandler. Kumar with question the comes our And line Piper

is line go open. Your Please ahead.

Harsh Kumar

for about thank is we years, And incremental so automotive, you. design plenty talking that work Is in to of at the you have retirement. hey be all industry. Bernard, guys things to any over enjoy Yes, capacity there and Hassane, of share? opportunity cycles? here, everybody's Or first in the take given for it together, worked you appreciate just how auto and for not we've you available then question, the least the able long my your some all, to tightness help really

Hassane El-Khoury

where we're double Sure, Harsh, areas of for obviously so sourced, one suppliers. two we're

We we're product able it, we If these support of have will. to some in lines. our

already don't if order to share help for we're we we course, ship, in need they to Of it. where we've with have XXX% engaged us customers going know,

that's And the number don't ongoing. rest supplier I three challenge that's know. product, even okay, getting we two, That's So the is at way is The and four. ship that the we're looking day-to-day. product from if that of running that what we're the do customer business

the said, be revenue. see product shelves, call of as product go we're into or the we're we're to if have it how evaluate like customer for is towards much settles, share even end go So, be as line give to because end to to problem creating not going is the demand makes going distributor quarter our go going on it's it, as that our going the is bottleneck to ready sense. the able to to the sell we far dust end it as quickly after to not the to the when That's actually We're we going help. it, sit we're the capacity, it. you can and watching it going to shelf But on

Harsh Kumar

it. Got

very I And so what geography. China my can has EV space think there? Could the ON you This active that and has charging think that chargers. activity talk position your specifically that been follow-up, that you seeing is Semi we an to about, talk Hassane, area, the ON about particular in is just in been in

Hassane El-Khoury

obviously, strong. our still EV far second-half when we're wins does of to the the we've we're very actually prowess specifically And customers not, and market. area the And than more and not as support portfolio often definitely posture in that the technical change. that able in have the in that value China we're products the you that considered, always ones manage, XXXX view being is as that active we're had in design selected, Yes, that

Harsh Kumar

you. Thank

Operator

with comes of Chris Thank you. from And the Raymond James. question line our Caso next

line is open. Please go Your ahead.

Chris Caso

working margins and you I because the some you. to morning at now well. always product that you, the a It's yet, wanted Yes, potentially look follow-up consolidating Hassane, plan recognize as the together similar revenue Bernard together, of isn't footprint. about we points prior-peak manufacturing asked the versus delta most that isn't I some is about thank gross ask regarding but and you. the comments unfair XXX when levels, pleasure ON I just of to at And basis congratulations the Good questions, question and all refocusing my with been line depreciation. for a

as ability done business system you've if of initial So you such would the guess selling be you consolidate that meaningful or able there the dent manufacturing, is footprint. review flex want to that make? to in your to I a enough that's warrant of fabs would make there potentially, that in depreciation, question a decision the is, Is more review if that

Hassane El-Khoury

depreciation. in obviously the when going of your all company, yes, portfolio about costs and And the be of it's there's footprint, when the manufacturing to there's to this is, anywhere going I looking there's not overhead it's going company. I not else, answer And the going start opportunity. The just of is rationalizing it's fabs. fab, really, out for out everything. drive to at receiving be it's say consolidating, managed sucked not to the be you reallocated, always utilization mean, we're simplification, And the

going different optimistic and we're the OpEx order more dollar, make of in your is tracking to decision where timing we margin is COGS Of COGS, outcome depending the answer that we generally, end-up. levers expansion and course, that gross what some I've conference. in here but drive OpEx on decide every category to of it's been question, versus spend, about to the where to since But have I'm every

So my translate that do, plan. been hold our worry we're executable right with not executable mine now, a accountable do, that work into board there's putting that of I more a has to now of great and I'll of strategy doing all the a outside do to. enough shareholders to what directors, our is how it ask, is in focus starting and us And that's but importantly, we you

Chris Caso

That's great. Thank you.

as you could year, As back outside the some as and about could as of then suppliers? front address the the finally, at the end in that if about or you where of go are, does you bottlenecks they next a follow-up, question bottlenecks maybe talk try last track to more or are end production, how perhaps some now, the a I to where year, was compared it talk and into you where near-term if regarding could utilization is and the ask

Hassane El-Khoury

also XX, place closings side, of in seasonal in of bit of towards quarter, that and the of we finally, Malaysia, ramp towards as times. little and XXXX, improved So, low utilization a the fab expect utilization all we affected China in low in see low quarter we that quarter time was increase the anticipation the factories XX, year in in see in we shelter utilization pandemic the Philippines we by first several little quite that should a in an in into on bit especially end XX by the definitely and have the helping the fourth the we're did in it our last of and second

Bernard Gutmann

time. constraints on are primarily on call with depending front-end the Yes, and I'd and the and it managing for supply loading internally it, most of really the call us back the but line, our at externally the outside, gives balanced takes is this is not product end foundry constraint

Chris Caso

you. thank Great,

Operator

Vivek America. of And Arya Bank question of the you. comes next our Thank from line with

open. Your Please ahead. go line is

Vivek Arya

on curious between I the auto my widest in you say environment, kind but for units the mid-teens, all think the down sales in I'm in current And first QX units that and Hassane, demand fact, Thanks Delta to semiconductor only last perhaps and year. taking Bernard. my one seen. your question, question both the and down you wishes mentioned that record the we've Hassane this of and were insights as for congratulations is X.X% to of auto and audited best

auto level of what in and by later some insight not of the is, your the followed into are when shortages the process into chain? QX just of will we you're quarters year, demand confidence How that versus seasonal question actual shipping read stocking in above end production normalization up that how much do automotive the seeing they QX get my be consumption shutdowns? to you So about is and real these the customers what you're supply shipping

Hassane El-Khoury

Sure.

to through deep, So does it it deep, any right this I'm conversation to direct our out going ship it are not about this for will getting this this to relates to deal answer and to away go shifts end-customer. if skip the or because tier-X, deep, an as we customer, I which it

distis. the So that's we're kind how dealing of with

a that go could So, stranded demand. have we don't to inventory

what to answer side, know which know literally know we which then the And are shipping it's We engagement. we manufacturing directly, this tier-X, as know do and question in. what how the we're not all deal direct products. we rates are, OEMs, far So, with we as production OEM your what

manage that where it. products know or area a shutdown And percentile. are we it which we If ends we have a our targeted know, that. which call to XXth product there with of the an So shortage do OEM for model is that's in year OEM how for we and a example, for plant,

to We are to redirect else. going our somebody products

not happy a you're engagement time is go full rationalizing is use which say, manufacturing that versus I'll through call that call XXX%, if demand But the We us are like happy. will we're There of and see our inventory. is the demand. end vehicle not very up to you a a of to insights all what from to Obviously, doing said, to match in making this to to to be XX% get but going we're right. may cautiously get it timeframe, factory. quarters, a the And for the make start every real I'm monitor guerrilla it's it, a with tier-X vehicle. we down want get of And system is goods optimistic Sometimes just to going take other demand, XX% team's the box I that demand it in a it with because lot we the a of our -- supply term OEM. decisions. a They finish but to know to and it but we what couple that that of we're capacity warfare cycle shutting day, it's kind that factory, this

Vivek Arya

closure points guided at a up benefits flattish. Hassane of fab prior even decisions. heard I kind some ,as the basis gross of for of my say And on the it. the point, the that to Got QX though XX And about mention margins follow-up some

through be the from you. gross QX, now still baseline, So could and the should ask is kind are until what margin this or decisions could other us Bernard same incremental I QX gross the set are of we the of was margin way to gross margin the question, on you utilization all a seeing make closures is QX and we looking you Thank -- at onwards? a us benefits walk hoping if fab different everything modeling improvement and maybe headwinds like from a new or pricing new you level perspective, a

Hassane El-Khoury

of year. said having and QX $XX So, definitely million that it's [indiscernible] we number on, is includes benefit numbers, a an the the before, effect and

an on that's margin. effect So having our what gross

Bernard Gutmann

function expect, and should now. back until start one part right and and margin regular As a trajectory gross as forward giving once you of QX updates trajectory I'll with quarters will far moving our I based for guide the our that's the what how building ended what on prior I life, my be you give by you and that's committed deploy I am I we're step a

I'm made to Rochester a is the waiting or Now much closure lot actually not We've work. have flowing we're there August or is talked of of It's the QX till that tremendous to pricing QX other line doing? about this we till for obviously items I've judgment or on. levers that start in been how progress.

QX month I margin gross others gross on though few two call I weeks going when on some on is mean improvement QX a to see depending improvement. structural that by structural doesn't is My drive, gross that structural be or months baseline into we're baseline the going and trigger. what And can a pulled or focus in You're we hold things to a items in happen what full accountable deploying. that margin is take it plan and the favorable we the happened I'll be right to the that you there the but that's up to stuff us, has to us. us margin to

Vivek Arya

then and good you, Thank luck.

Operator

Group. Thank comes you. from of next Christopher Rolland line our from Susquehanna And International question the

is open. line ahead. Please go Your now

Christopher Rolland

and my Thank Two congrats. question, spent great. There Enjoy we've part. no no business the the strong guess ones, and It first has the about time your the in are for all business. like revenue of you're in on quarters now what most there two for retirement. had going your talk the direct or XXs questions seeing traditionally at and some is together. I the side, good disti XX, been competitors. disti Bernard echo I quick maybe All we've you of for have was XX. asked Thanks all, shortages Maybe people disti been

For example, typical? much disti what is so higher driving that than number

Hassane El-Khoury

in pretty strong been channel. feel We the that have

We are normal within [indiscernible] our our to way. managing that inventories be

strength. So just overall it's the more

Bernard Gutmann

know you're the and been the are that the at Yes, mixed I'm discrepancy I don't about consistent mentioning percent It's far XX range. from XX% XX as very numbers the guessing as distribution.

earlier. products can't that's to change been hasn't really to a what And us. behavior, because switch to So because going there are comment not in customers gave direct disti they get I the from

be be shot to disti. inventory disti the shelf disti straight building to on at the on to point able through There end driving are inventory customer. We is a our no

So see but driver, going from bypassing if for us, direct to from the the distribution company. get that's not the percentage consistent. customer it cannot not guarantee they're get to it can I disti be by a been able change don't any I in

Christopher Rolland

had about better how we're strength world question particular. rest Okay, talk versus comps, North others, just that importance of of and about the into this understood. into expected. and you Could customer maybe com My the we on important maybe where North you the in America is handsets was China put side, than second American talk that as seeing outside

Bernard Gutmann

deployment capital our I mean, happening, customer XG is market. power obviously the is of the important, position with side North the because the and expenditure American and given

of the happens. across that's well-positioned is on the of will a total share certain regions. gain very somewhere the market. work And level we in really And monitoring global a lose There are we're it basis where regionally, things We regardless as design else.

Christopher Rolland

guys. Understood. Bernard. Congrats, Thank you,

Operator

Securities. Riley question Thank comes B. our next the from Craig of with line you. Ellis And

open. ahead. line go Your is Please

Craig Ellis

great the and a the the it any the years. to into done with congrats. out two high notebook for looked be just things distinction over and question where It's versus between One, notebook up just power might've going working want start the Thanks what us sequential you'll and the value to to strength the forward you help would the and I by. distinguish understand following margins units, on resources, Hassane, views by taking dig of compute server sides ability you business you strength that helpful? can been allocate Yes. as those following Bernard on initial of to at given drive wanted then different gross

Hassane El-Khoury

Yes.

run some it Obviously And the we sense, that, is are strong. our globally. opportunities enhance long of though for So the the focus have the but of In that that home. is quite on taking the margins we're computing taking shareholder That's we focus client enhanced in we also opportunities more server computing see in in of been space the fact the advantage from where believe where in we work cloud. the and better has value future. meantime,

Bernard Gutmann

you're industrial, compute when market, create that and focus it, others, to familiar growth of a with to look we going I kind metric. products fits the And market. for you're as I server and the adjacent effectively we the in be within industrial. efficiency and There definitely that OpEx of Yes, able be you valuable to about. And very these the them auto will see automotive things going accretion that point would They about are If submarkets I product value us would part submarkets not in markets, our are an them. is a are the overlay high But drive call drive. addressing strategic as because technology talk company. efficiency we're I'm those invest and margin those for that's as talking that

Craig Ellis

and you've Thanks in follow-up you just then notable some two additional surprises. guys. them driving Got about those script list been could hoping the business their was about talk the And you've implications that think forward of creating three had value? positive since aborted shareholder mentioned it. your Hassane, and or you early on, for and you I as

Hassane El-Khoury

me me them and we is disposition in diluted There the those how tail. than I product levers you, for the order while the be very and give then don't we healthy it. We try gross had to much thought do really higher thunder one is can gross versus And we liked to manage you mix. in. steal meeting, because the that I double I'll gross to have the thought some give distribution. margin going more is a actually but leverage I the distribution own view effectively the if down that I on margins. I excited at portfolio walking we to businesses have focus five mixed of have less do And to my found, shift business -- you profile, I'll margin what so mix want for I mapping don't years control the to August shifting change gets in that start wait grow a effectively more and we look Sure.

Craig Ellis

you. Thank That's great.

Operator

And Rosenblatt our from you. Thank line of Kevin next with comes the question Securities. Cassidy

open. Your ahead. Please line is go

Kevin Cassidy

question taking Yes, thanks Bernard. and for my congratulations,

Just many talking are on and when do supply foundries chain Is how is this prices? different is about you're the you raising say supply your they increasing side, what use all prices? you foundry the -- chain

Hassane El-Khoury

the foundries big subject. and same long that of are we suspects have ones. pressures It's subject our list pretty all usual pretty use else we the to are that So once a same of everybody more much we uses the competitors

Bernard Gutmann

internal. is made versus Yes, comment about supply really foundry the but not I the chain

is the I is really importantly You everybody at is more -- the supply look that at that need shortages that also seeing. not as look material. required. it's There is But materials to it

there but them, asked constraint absorb if are with have the -- But cases, for It's more have supply a somewhere in seeing it cost we to some just our material pass of pockets we and else. foundry we'll that those we in supply are support versus call if is we're basically suppliers chain. that have we down, our to for strategy, we internal our it's conversation. to So source usually And a not move are it able customers. dual raw eat it to us going for order so everybody not

Kevin Cassidy

there or maybe consideration just part for by maybe get quick one And in to Okay, a follow-up Thanks. and trying foundries understood. putting development, of in down prices is your strategy into more consolidating a foundry?

Bernard Gutmann

technology because part choice always range to need. are we that pricing on of able just Foundry foundry, looking We wide of the technology it. we do Well, are benefit multiple. -- doesn't don't you'll the across at a how obviously spread the you need. to the if of But, footprint you able get versus that's consolidate even be the your being volume business have

we and it's to get and best I external to service end when consolidation, can best order manufacturing markets. in the pricing posture the So our both say internal

Kevin Cassidy

you. Thank great. Okay,

Operator

Thank you. with question Paribas. next BNP And O'Connor comes from our of line the Exane David

is line Your Please go open. ahead.

David O'Connor

[Ph]? Great. side, kind Good positively any surprises, when Hassane, to morning, came and or at there just That's question. Hassane, Was the being Maybe start that you? Thank surprised one my surprised anything you stood relationship? that in two all securing positively been this for has with and by Is you look negative business. maybe in the from if the of thanks or industry changes do first kind how for change term? just even at the foundry think taking in in terms that then of [tightness] about foundries follow-up, you. my needs as you there mentioned And of relationship to follow-ups And longer a questions. capacity my the

Hassane El-Khoury

opportunity. It's Sure. me look I I not mind positive is at negative a works answer see My the as don't If to because what I expected, for I surprises that hard differently. it something have any.

surprise positive opportunity. always say it's it's an whether or So,

I as, in are in didn't positive did has let's would a tell in But, looking able information discovered. are last I you our one didn't the I the opportunities shareholders, I they and the thinking weeks in getting turn way I It's opinion up or the reason to is us do. general non-public joined that when for them there surprises another that these didn't and be that Of know. just the and I there took couple of I just because of always answer privilege heck a at umbrella part will it. course, before looked into order been that's day eight identify I at is go it but woke I all have have job I an internal. to the been of I what at well,

down energized more the has you But let's see mindset the to that's why start and important, had. the results been from response write things Let's and I team executing. And really, an the of kind tremendous show. been are to workforce. start That's have going

on that's So, this side.

with but do start you you strategic having how And kind And brought It's their in a a and term operation, global then to these you factories and down. those have you your by the personally. a credible relationships really how a going this are once Now, a so relationships. we are who long of as conversations have much to to we deal able they going strategy what with commit, up relationship. these tactical if we growth. of can and not a want is has strategically the all industry suppliers. window, the to keep and where are to conversation surprise we from you it's five-year strengthen with of Wei-Chung, a we turning the to those, manufacturing lot Then three-year start a help. better outlook lumpy; a have and on? with of strategic lot your do head do And able I caught company

David O'Connor

thank helpful, you. Very

Operator

from comes our And Sur you. question Harlan next Morgan. the J.P. of line Thank with

line ahead. go Please open. is Your

Harlan Sur

and for years. Good Bernard past number the your you welcome thank to contribution to and morning. Hassane, team, over support the of

opportunities? further drive and given strategy, lead your What's the As high key with of part organization markets, and dollar ability and your the sell initial certain that Hassane, content products current the portfolio. think high attached products rates and focus to drive the focus, is breath growth a of I sales assessment and part and then cross targeted on margin, attach to of of you marketing, higher

Hassane El-Khoury

my mindset the adding our the from sales groups and direct focus. really force is these think is I there. drive for Yes, marketing And

with is thinking is to to portion value, going force things sales lighten I sales about marketing that going way have not going that at really to marketing, to to bag I it. our them If you our going be is distribution a bag That's to I our of and where sell a going and at the footprint. I to question that same would would And that am coverage. material portfolio have way our drive order the distribution. I we drive sell am hardcore by rationalization direct be the looking still prior answered that to content heavy look I it call do we [indiscernible] want maximize bag at a and how It's maximize. I them breath the want distribution marketing. and sales match rather the how the very sell and

Harlan Sur

maybe us wanted your then carbide-based and pipeline power has power both give talking been you And portfolio. team Hassane. [indiscernible] about to silicon get silicon if and Thanks, solutions Yes. and just industrial, your views. portfolio win design and on thoughts the but automotive growing know carbide can the I

Hassane El-Khoury

put seen joining. would that the one surprises under of I that positive since I Sure. have

really we to and but competitive. for we're more are start that on going probably here, share that. our very are as we're I we silicon four based mix importantly revenue playing, wins the crossover have going versus taking we're drive, over know had going know the far five IGBT think next is products to as the are all I are where of on design markets. carbide, our these like don't in see as the we technology And we that I to Obviously years, products be. development to

be talking that surprise me. it's the are see as about. I of we So, a definitely to positive strategic part for that intent And going

Harlan Sur

thank Great, you.

Operator

question And Pitzer our next the Suisse. Credit you. John with Thank line comes from of

go is open. Your line Please ahead.

John Pitzer

am they today are to question. talked Yes, if all good that targets attempt. could this also existing to August are kind analyst the are thanks understand out think hanging I congratulations the about that timing change where a can versus quickly me steal thunder And that there there, was and of trying margin stuff for morning talked the we apologize But, focus. to that there? get relative August. you being is you preamble Hassane, the how there that's wouldn't to is if about an long letting your until harder you you mentioned earlier curious bit the me I the in ask But, targets And you you guys. help get a that day. big for little do Hassane, deal? out fruit

Hassane El-Khoury

Sure.

a QX as the already see as direction right in far is margin. move you So,

So, tell I just will that. you

have we -- until wait we have. the quarter will to discussion before going not are one more You August

you'll So, more then. progress see

us you all the that it As far course, we will am of as margin. What positive I you in years "Wait enough unwind have before manufacturing a is [indiscernible], haven't really takes fab scale time. to are on because it your there we and a the to me I going hesitating the done footprint with positive because do three for are impact getting see, the timing, impact manufacturing, this." say, it's to going customer But We take long am stuck to changes short-term. scope not to asking I me August. oh, we are till going of what change That's not full is also of are transferring for all but for so yes, longest and time make for we the between levers expect. can not technology take can And again, hear

much favorable. more You'll expect something

John Pitzer

that's And follow-up. my is helpful. this No,

broad M&A some to too are I going Just not to you know comments, going I about of be hoping us specific. back thinking you your you was give are could M&A. But, strokes

of You value Broadcom with clearly acquisition. IoT lot a at created Cypress the

And times, What M&A what set tension model, the business? If and kind the being ON, targets often the it targets. principal profitability history of do has with around have between around back. an sort to at views means around add profitability the there M&A M&A to accretion, the you you this look of

Hassane El-Khoury

you really to talk for is or up at deals about are and deals M&A. do synergy. financial one first company, I would be position we recipe it would not at deals I a specifically There going deal strategic what market they when There are do are Or, it very that a you where leadership that where I that Sure. that, M&A strategy accretive some for us growing when matches a for the right We're attainment the to to not give a the strategic because strategy - to in arm do are you year it shot markets. organically. can Some those, current the be we Parallel do the capability adrenaline But strengthens maybe organically in your position. that and give the or the versus accelerate mean? example. in looking where are doing it have like

it of M&A purpose because we deal. key. M&A there are it doing Cypress, bad sure the a have So why way the all I in do do on certain done am at it you formed not explain cannot But, into are going all scale. at fit out and a explain I to we that's I to employees, to to look thesis bad focusing I just deal order going have it a the I to So, seen our you've is the we of prior if can that and do We

growth. the have We

value. us We create have a of for to lot opportunities

be with our just rushing we're that of sake us something see very to we it's aligned very specific the do for going disciplined, achieve can that doing to be thesis not you going a very strategy. something to doing when but you're going well expect So, something, is to

John Pitzer

thank Helpful, you.

Operator

with Thank next Truist William question from the our you. of And line Securities. comes Stein

Your open. line Please ahead. is go

William Stein

can in maybe about into maybe Great, we little strategic Thank thanks the think for a that's and hoping letting the me ask dig didn't compute to you hear QX probably the the those but I little you a markets can bit? also consumer question. My end congrats Hassane talus again about by end-markets, the end-market to for Bernard; focus outlook of and I'm more you. quarter, bit particular, you, talk a in

Hassane El-Khoury

Sure.

commentary some and end-markets But we going to it's of regarding that stage also going on but markets. they what support anything that. in take be, call, bit we see the of for we're forward. right gladly growth very where that notable, they're of very I but we'll and strategy company dilutes stage very, as our comment to these of you moving don't guidance where Q&A details we're the I kind at margin to of the start And driving have, are. not the that session as you obviously a start didn't into order lot far narrative But and breakdown, opportunistic profile if to of us why to where the there's I'm the that a will Your expecting what we're as just I'm the tell forward-looking delving accurate. a all of commentary if long, starting what a set is be of important set of kind that's you're to that going these doing. is, lot end-markets, of very little given includes by think those is

on message I So, point. want to the keep

William Stein

much as happening to maybe with the idea now typically? to can the give it shortages I like customers a like Okay. that's not about you and it backlog looks lot can us bit stimulate double Maybe that nervous, get backlog. little But ask business. duration the a heard then sounds your what size some the ordering, because the so We've of about backlog of relative

Hassane El-Khoury

metrics, expect, what tell books we there force we our have team than we our way the have trend So, are there's and do on data are. risk sure about a of I and tells you inconsistencies more what how what lot listen, of a sales our market always double and between operations orders the ordering, and can that make us,

up whatever just at and risk and pick we double directly. So, wafer the of on I'll our see to the and it leave don't ordering drive our starts. backlog We we depend that, engage inventory to phone have

again on this, but day-to-day. do to a have to it's confidence it XXX% to times some that, ship do a confidence we sure going are a plow get we made at that comment it, but to we're ignore, So, just indications XX%,XX%, we customer normal I I when focus, make that's in the Typically to want can, going back I again, there board to end-consumer. to goes to of earlier, we whatever I trying order, an an bookings don't That's double that the be guess. so through as

William Stein

Hassane, and guidance. on results the congrats great Thanks, and

Hassane El-Khoury

Thank you.

Operator

any and question-and-answer to you. back over Parag this remarks. session, like conclude for to today's Thank And conference I'd turn does the Agarwal further

Parag Agarwal

the seeing for everyone and the today. you you for [Ph] call and you, various Thank joining quarter. various look conferences forward We goodbye. to at [non-deal Thank roadshows]

Operator

this gentlemen, and Ladies today's concludes program.

Everyone great You may a day. disconnect. all have

ON Semiconductor (ON) 1 Feb 212020 Q4 Earnings call transcript