Earnings call transcript Q1 2023

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Operator

Good morning. And thank you for attending today's VPG First Quarter 2023 Earnings Conference Call. My name is Danielle, and I will be the moderator for today's call. All liens will be muted during the presentation portion of the call, with an opportunity for questions-and-answers at the end.

[Operator Instructions] It is now my pleasure to hand the conference over to our host, Steve Cantor, Senior Director of Investor Relations. yours. is floor the Steve,

Steve Cantor

Thank you, first Welcome VPG's morning, and XXXX earnings good quarter everyone. conference to Danielle, call.

call audio Our QX our of the An on accessed a also limited our been have available time today's internet recording and for press release website website. and at slides will on be be can posted through vpgsensors.com.

Private Next harbor provisions safe slide, by Securities Reform governed Litigation the Safe Harbor are Statement. Act. the Today's XXXX remarks of

a vary to XX, Our for the forward-looking filings, from discussion actual SEC for operations, you of ended XXXX, associated And encourage including may recent other read filings. VPG's with December results our the year XX-K risks statements. SEC and the we Form our

Bill On Clancy, the today President; CFO. Ziv call are Shoshani, CEO and and

will Ziv remarks. to I now Ziv? for X the call the refer Please quarterly turn prepared of presentation. Slide to some And

Ziv Shoshani

will Thank the the financial trends of and sales consolidated you, some provide XXXX. second Steve. details VPG's first will I commentary outlook on for results and Bill the financial the begin for quarter with quarter. quarter about

another the Moving orders XX% increased quarter sequentially Slide from year-over-year. margin fourth our achieved improved expectations. revenue solid with as We X. recorded gross for VPG. We trends Order quarter. and first in line quarter to to We our the grew

our We allocation strategy from of of shareholders' operations supports cash flow, generated which capital million free to $X.X and $X.X cash million value. grow

X. to Moving Slide

by compared compared our our detail, first in but reduced favorable year X.X% quarter. we Changes X.X% $XX.X had in lower a impact sales total FX to and impacted million QX million quarter than revenues. currency which the ago to the higher fourth results rates foreign Looking $X.X ago, year at was reported $X.X a million, X revenues of sequentially.

project-driven sequentially the measurement respectively. sensors, sequential growth three XX% XX.X% contributed business solutions of of The and orders through X.X%, inventories and quarter. rose the due Orders majority segments, indicating was million -- ratio strengthened systems a reporting to weighing timing by and X.XX. for This to of an in end of $XX.X seen markets, the depletion all in the improved of this through book-to-bill grew growing environment the and Orders customers. X.X%

we been gross in margin. In manufacturing segment impacted indicated, was temporary our for gross up fourth XX.X% improved our I by margin As quarter, adjusted adjusted XX.X%, had which particular, inefficiencies. from the sensors

a In through terms done shortages. chain, over past we of the challenges the our good two navigating supply years, global and job, have

it still supply to While of our ago, is from measurement systems back are experiencing not still pre-pandemic in year levels fully as components, chain a we segment. shortages is improved particularly our isolated

shortages component quarter first key a For revenue delay these million example, availability, to DTS of led while of will chain we shortages product to estimate improve $X.X microchip approximately redesign quarter. per in supply our us the

For the year. delayed of the shipment the by next this quarters, we two of majority expect to QX ship

Weighing Solutions higher offset In by our Systems continue addition, which and quarter, compared fourth some and In to impacted our first experience selling Measurement higher we programs. were to materials. reduction quarter, mainly we the cost costs for prices $XXX,XXX ongoing with higher the cost of we in segments,

per an EBITDA margin share XX.X% first adjusted generated adjusted the net diluted $X.XX. quarter of in and All-in-all, we earnings of

performance I'll now the quarter. segment review our business first in

inventory our work military The in and space $XX.X QX levels. avionic, of for down sales was to from growth customers our higher consumer sequentially. ago a resistors Beginning lower precision X. with market. X.X% Slide Sensors in XXXX first sequential primarily year million resistors from declined to offset and X.X% the segment, reflected growth the precision sensors sales Moving quarter as of revenue the of higher The of advanced market continue

as we in for AMS sequentially was sensors X.XX, test precision measurement for XX% in the resistors While book-to-bill grew of XX%. and and grew orders X.X% by orders million by $XX.X

can the based in expect large to have QX, of the market fluctuate from the timing but were quarter-to-quarter soft in consumer As gradually on demand before, for in second improve customer discussed we we orders quarter. advanced schedules. sensors Orders

part value of initiatives new battery In wins are precision new in fiber applications, and our for our our to resistors and in growing resistors, applications emerging believe performance As for of design our data consistency, we center customers' these we reliability strategic of both in optics secure management. terms interest precision solutions add seeing customer in EV equipment. our

of for for number addition, In advanced applications prospects emerging robotics we medical the long-term in including and about sensors industrial are a markets, optimistic very applications.

for operating XX.X% and primarily adjusted margin rates. efficiencies exchange due results favorable currency foreign to sequentially In terms XX.X% manufacturing gross improved of of sensors, from

Moving to Slide X.

our Weighing segment. to Solutions Turning

First transportation in the partially was offset revenues decrease sequential higher quarter X.X% X.X% lower market, by a industrial and to ago the was sales in than revenue fourth $XX.X market. year million to the compared lower sales lower in weighing quarter. The of attributable

We continue markets. sales OEM to equipment precision ag construction with and to pleased the be our

While this grew from was ago. a year it modestly lower XX% sequentially,

Solutions $XX.X Weighing to due fourth million X.X% Book-to-bill weighing were was mainly higher Orders a demand stronger products. of quarter, for the in our X.X. than in onboard

new We growth Weighing forward continue innovative initiatives move solutions. to for Solutions with with our business

lighter later vLite, for of technology we this cell to formally same We load and which version high-level previous more This than testing new in off-the-shelf launch are now that called sensors is our and the year. accuracy provides compact reliability. the final line expect

for for Particularly believe product premature applications such as infant babies, medical for we edge incubators as for hospital our checkouts, this us this equipment give supermarket beds. trade and such feedback and competitive scales Customers' to as technology retail portable well weighing scales in positive, can gain share as legal, been have traditional market.

XX.X% currency due Solutions partially margin Weighing profit foreign gross volume. XX.X% gross favorable in margin was by quarter. rates, lower increase adjusted primarily The fourth to compared of to in exchange offset the sequential

Moving to Slide X.

sequential $XX.X but million XX.X% transportation grew decline the steel a lower quarter technical products in Turning market. first market and reflected DTS products systems, ago, year revenue of of The to Measurement XX.X% segment. Systems the in our diversified sequentially. Revenue our from in the declined

XX.X% Measurement a lower for softened quarter from higher first sequentially cost, reflected to the in material offset Systems prices. primarily margin gross selling volume and XX.X%, higher by Adjusted

Book-to-bill for sequentially the for by was Systems orders bookings. of $XX.X customer Order patterns XX% and timing steel-related to lead increase X.XX XX.X% as fluctuate driven due products. grew of Measurement long these million ratio can projects times for quarter-to-quarter

of of each one DTS indicated, will for delay $X.X revenue As the of approximately next of million two I quarters. a redesign product

of to expect majority these We revenues the the quarter. recover fourth in

measurement we about Despite excited to this continue development systems. opportunities growth be key term and challenge, milestones short for

was testing. involves using pleased were DTS, a improve football which technology the methodologies to developing safety of project extended For by for for sports that concussion players we helmet-to-helmet new their instance, safety

data including develop is used and helmets mouth Our rotation effectively. safer loggers guards miniaturized data measure embedded the more acceleration, to can and equipment, direction. inside flexible then be can The

relatively address is the in real-world revenue project this safety does it challenges. While small for represent our technology VPG, of terms to potential of

exposed initiative about have which to soldiers blasts. is for DTS are for developed Army potential in project, a the excited we WIAMan assess Another underbody injuries we dummy the to test U.S.

technology for we to recently are interests this While Army, from project this approval U.S. new the market already we to received the and the was potential seeing world, customers. U.S. main allies around partner

Moving Slide to X.

are our to and There on reasons for turning our comment strategy VPG. be to for Before capital the growth I Bill, allocating long-term stockholders' the want about call to value. many potential increase to for excited

seen have position OEM as these time, customers in and traditional us several differentiate the markets technology markets capabilities their applications new opportunities. into have Over growing new beyond seek measurement and our seen products. and to past we years, precision operational high-performance sensors we and the capture share both areas our for investing of At our broadened solutions exciting to same to emerging

it that around the our to between market excellence this over the our and expansion is drivers key company. believe same cost initiatives at growth also our opportunities the of of the the has past I of operational years, them been continuing reduction convergence address several ability time, and one

can and strong capital to and to we confident warrant continue allocation to As repurchases. drive our organic M&A as a value support strategy creates we strategy, continue successful that sheet ample this shareholder balance liquidity stock growth, are that

financial it Bill additional turn now Bill? over to will Clancy for I details.

Bill Clancy

Steve. Thanks,

XX.X% net sales. diluted of the and an Moving XX.X% reconciliation gross In net slide slide of achieved or and income we of diluted was of sales, XX.X% the XXXX, revenues XX.X% referring of to operating On was $XX.X $X.XX. million was our million the our or earnings deck. tables first of $X.XX. sales, of basis, profit to earnings per or of per $XX.X million or share profit $XX.X gross of revenues the income quarter million X, and Slide Operating share of million, $XX.X $X.X adjusted

a the $XX.X million to were Our decreased quarter ago. year first XXXX above the revenue compared quarter and X.X% of X.X% quarter in fourth first

a exchange positively Foreign quarter to the impacted have negatively by the year XXXX. compared to first for of ago as fourth million by compared million and impacted $X.X quarter revenues revenues $X.X

in XXXX, of manufacturing lower an costs fourth from XX.X% and first the Gross by of exchange XX.X% efficiencies, increases. material gross which fourth wage benefited foreign and quarter first in as compared as adjusted basis, XXXX. offset margin in compared quarter the quarter was our On to XX.X% the volume, quarter was rate XX.X% favorable margin partially to higher

for margin operating XX.X% Our quarter. was the first

in first the quarter compared the operating XX% XXXX. of quarter in as margin Adjusted XX.X% was fourth to

relates the for quarter were positive exchange partially quarter $XXX,XXX and $XXX,XXX as million SG&A $XX.X for and million by of compared first The wage increase expenses offset the Selling, general XX.X% $XXX,XXX in increases, mainly revenues revenues first $XX.X for of foreign rates. and of of XXXX. XX.X% or administrative headcount for or to $XXX,XXX travel of commissions, $XXX,XXX to of

$X.XX the million quarter of Adjusted XX.X% $X.XX $XX.X a compared to year XX.X% earnings share EBITDA per was quarter million share ago. or million diluted or million of were first revenue or The per revenue $XX.X $X the adjusted compared for in or net diluted to of $X.X first XXXX.

related the first in majority purchases quarter of CapEx million, XXXX equipment reflects the was infrastructure. and Purchase of which $X.X

includes to of in we from XXXX. million, carryover fiscal in be purchase million spending expect $X the range million For $XX $XX to XXXX, CapEx which approximately

XXXX. $X.X $X.X capital cash cash from was flow a adjusted $X.X flow XXXX first as free of million. quarter Our as adjusted cash of of for compared million to of expenditures million define We activities the quarter $X.X less million the operating for first free negative

was the The quarter GAAP the in first tax first in XX.X% to XXXX. as quarter compared of rate XX.X%

range XX% to are for full in an operational assuming rate We XXXX. of the year tax the of XX%

ended of cash debt $XX.X We long-term million. million XX. first Slide $XX.X total to quarter equivalents Moving and of with the cash and

outlook, be quarter fiscal first of XXXX we expect to to for the the Regarding million rates. in a fiscal exchange revenue the $XX constant at range $XX net second quarter, million

quarter, the which our In summary, the we long-term strategy a of value. quarter we the have to and strength aimed achieved at solid We of underscores strategy, in in and increasing continue first allocation our performance model our grew capital XXXX. business implement shareholder balanced orders

With open questions. lines for that, the Thank let's you.

Operator

question first proceed. The Instructions] of comes from [Operator of the Please Certainly. Company. John line Sidoti Franzreb

John Franzreb

product? Systems deferred is you Ziv, that QX? business backfill the the the of discussion revenue Or X.X morning, with Could taking us Good in David. like Measurement will around about offset the thanks there versus product million give about the the Ziv you for start by bit redesign DTS will you that And lower be color the quarter, mean revenue I'd in that? $X.X line. and QX other of to a And per when of talk to little some what questions. did does redesign

Ziv Shoshani

morning, Good John.

that the has Regarding at the the this products is DTS redesign product, one of launched. DTS

DTS, for electronic business a is where producing are you DTS product Our system solutions. know, as they

to have microchips. we some challenging pandemic product supply and were for Our been secure The -- while of the able these to various components and use inventory. we have

the A different that we redesign supplier a components, the to critical stopped and system very microchip recently, had has around therefore, supporting microchip.

to the know expect delivered bookings third new in second the of availability microchip, the system will and expected pushed the be this quarter. be and new of new is for orders course While that fourth we shipments supplier, there that were quarter out the specific or to we microchips, that

a deliveries to mitigate there several with systems, systems, order in are few are order we spec a we redesigned to promote, of the performance. is to be I that component, we in product revenue The this expectation once and to for the it system say, would similar effect. QX. and require that in trying system's happen would mitigate Now, a would new be will effect, have customers those But the the similar expectation with the generations a able provide similar specifically would

John Franzreb

Okay.

produced system. Is I that you of for properly? say and guess, It So about QX you have X. that re-qualified, lost million new QX needs was and the that correct to orders in $X be, expect the to to recover in

Ziv Shoshani

type stock. is most those delivery Naturally, deliver in the -- we short. for the delivery cases, of Therefore, lead time very products, out of

currently be -- discussions them. we currently, would have So the the on would but to the -- will we customers the don't bookings be have able with that bookings, are expectations the once based bookings, deliver once we

announced Given get expect we to is product that the bookings. we do this fact available not that have currently, the not

So we with alternatively, push similar as a the product with similar said, trying I bookings to are to for performance. systems get similar

John Franzreb

helps lot, then And Ziv. the just a shifting Got you. to it. That Thank Sensor helps. That segment.

order up. weak sounds like Another cadence book-to-bill, although it the of quarter picked

the are where we cadence sensor profile As is of looking the light maybe probably the revenue a full orders, bookings down segment at of you look and year and probably year-over-year? at in the the year

something in sensors the will going be else gives confidence first maybe half is half. the there or reset on you second Or that's better inventory that that else, something revenue than

Ziv Shoshani

visibility, QX to our quarter. moving are the saw, Given prior in parts. two There bookings has segment you the of respect Sensor as higher a

and continue say, came do on the and the the we see the sensor strong on consumer advanced data optics, centers semiconductor, side, test the for resistors, softening and for on fiber side, very for to military on side, the would measurement from precision the avionic, On while sensor big, I part. gauges space, bookings

inventory. through And they customers that the the expectation quarter we see -- in bookings. in the higher will their we are are -- already cycle is consumer depleting believe Our the second of end already already that

So to to also improve year. the the say during see to we continue we second to environments that quarter, business the expect is in see I first that the would that -- are to expecting expected and in respect further quarter

the climate -- have we sensors regarding So regarding along a business all-in-all, have a we we as very move the positive prospect year.

John Franzreb

queue. question, I'll back get And the in and I guess last one

to higher quarter cost did of $XXX,XXX also maybe net and like I properly, and quite mentioned didn't You this your that a, you there understand costs to I given prices. are I higher that cost understand a date? mention get a when you sounded in you but actions it expect pricing if the but b, do wonder, was implementing price adverse properly; recovery, to equilibrium

Ziv Shoshani

we that recall a QX. Sensors can we One speak the aspect temporary costs, recovered we few have inefficiencies about are some discussed when So segment, which in aspects. you there have is if in QX, in

is The second piece the material cost.

QX million components. it's to We in $X.X continue to see respect and material year. in cost increase Solutions year QX in various respect and mostly electronic Systems, $XXX,XXX is Weighing mostly this last QX the of prior And and Measurement up in of to to for

to continue pass costs We price form higher increases. in those of

were or increased increase to -- as realized prices to all-in-all, is cost able last by selling cost million, if average XXXX material along And $X is even $X.X we ASP offset material additional which also expected selling prices, million have far, the year, $XXX,XXX year-over-year, move example, so the this price recall, The higher higher higher you to we we For also from approximately have increase. year. which costs. essentially can company cost Compared labor the increase and prices costs higher company in offsets incurred we reduction. or prices quarter prior and by offset

increases projects. continue and in year selective to also more is cost lines intention it to The while at to this applying the price do addition product reduction

John Franzreb

back Got I'll queue. Ziv. it. in Thanks, get

Operator

B. Thank Griffin The next line Riley Boss question of the Securities. comes of you. from

You proceed. may

Griffin Boss

for Thanks my taking questions. morning. good Hi,

obviously Systems that a book-to-bill So I'm the front. on standout increasing across glad board. to was see Measurement the

me So for on two one. that questions

in that's Or what wins Measurement the driving factor then primarily markets? Systems? only that customer new Or driving any steel in are in demand there? seeing orders? So book-to-bill related, you strong you the of growth positive other first, timing any Is that is end trends is And second steel? seeing are the strong

Ziv Shoshani

went by coming QX. -- is steel who the than steel produce more in mainly output, increasing expectation year-over-year. growth prices the the X.X% increase steel world is volume of strong up The that XX% from to China in

fact make a in decided country. the to also the largest nationwide program steel producer, in have order is more as India invest India, And is that industrial an to this which production second

in India which major our of business investments Measurement also also steel That's at equipment more there buying more -- sophisticated research So the more the regarding stronger develop adding steel steel than in in centers production. are while say, alloys, Systems. and terms in would I capacity, universities, order lighter impact steel more to

well now resistors, and to consumer have indicated, where as The other they military And coming as reach is they inventories. avionic, by driven semi-conductor I electronics their see which space equipment as the the replenish precision also as trend, back test is start we to point demand.

first I say, order So key drivers effect the three going would for those forward. of are, the demand higher

Griffin Boss

That's $XX And great. we you the should in CapEx? year? the it. I'm came one XQ year. just I in to the than to appreciate just of QX reiterated Can give expect us million cadence cadence curious, $XX back in on we is for here. And modeled. higher XQ? it Bill the thanks Because through much for the the more there, then color. color maybe know CapEx picking Or half for million the some up you for I lighter

Bill Clancy

Yeah, Griffin.

in yeah, year, second So more do to we $X.X have within $XX half for year. the million full I capital end $XX target the million saw back but the you spending, to so capital the say, the the of spending expect that of of Yes, that was still million. would

Griffin Boss

good. just And then housekeeping Thanks. one. of Okay, sort another

you worth under quarter. that how million stock remind $X.X repurchased us Can many in authorization? shares I left So you of guess just are guys the

Bill Clancy

the zero. was I XXXX the that within XXX,XXX stock want warranted. first during of to approximately reiterate quarter We to shares I So your repurchase just still have mean be program point,

Griffin Boss

XQ, I I Sorry. Through thought 'XX. misread. through XQ, 'XX, that's

appreciate. Thanks. for I Okay, me. it That's

Operator

next the comes Funds. line from Hendi Thank The question of you. of Gabelli Susanto

proceed. may You

Hendi Susanto

morning, Bill Steve. Ziv, Good and

Ziv Shoshani

Good morning.

Hendi Susanto

Okay. sensors your you avionics, be able I My military for mentioned first to in more Would management advanced sensors time and this space? military footprint colors question avionics, about and space. products advanced think what share is, on

Ziv Shoshani

are more military for and are applications the precision for advanced space applications avionics, electronics The resistors. robotics and The relevant industrial medical and sensors. for consumer relevant more

a are advanced maybe market. space not resistors military We selling end only to that selling misunderstanding was we This are avionic, precision and but part, into on the my sensors.

Hendi Susanto

Okay. saw press release. Yeah. you one the about increase is -- in just higher is, mentioned on will coming I then further second price last selling that year Maybe mentioned million be prices. wording. a XXXX. Ziv, then And that about the $X you And that from

helpful. a of you price low whether have will on In color the be percentage will like increase any like single-digit that terms of or I estimate ASP, any think -- be do

Ziv Shoshani

If the year recall expectation was the the mid-single overall I around is to And to million $X revenues can company same respect year from an perspective digits. of about order to magnitude naturally. this probably in last low do

Hendi Susanto

price of like the then price timing is it price terms And orders? in can increase backlog? increase, does the apply Or to Okay. apply new of -- you existing on like increase

Ziv Shoshani

given our price customers, we once any price Naturally, for cannot we orders. new price -- existing with given only discuss backlog, increase, increase on the our applied backlog, be increase apply

our about looking are given around quarter So backlog. delay we one

speak prior to the that flowing future while I about the expect as coming speak price to I in orders, P&L we QX. increase, applied should already the already quarters we see has when them been price about into saw in So increase

Hendi Susanto

past I'm I main be lower rate Last that forward? to this than drivers you for is few like years. tax the May That estimate. for going XX% tax rate year's the helpful. And lower is enquire the rate? what mentioned question wondering Bill. baseline for for tax That's the Bill, will XX%

Bill Clancy

Yeah.

the So earned the various income always is the of jurisdictions. in tax it's rate based mix upon the where

income possible, And range where constantly looking is rate few much given but where we have is years, So to as XX% lower of mix of today. that's out to like XX%. be as that being the where earned, our the that's the at been yeah, we over rate should in ways tax coming last tax

Hendi Susanto

Thank you, Bill. you, Thank Ziv.

Operator

Thank of question follow-up a you. John [Operator Company. Franzreb Instructions] Sidoti is from The next

may You proceed.

John Franzreb

Yeah.

going your about versus curious debt Just thoughts about share repayment forward? repurchase

Bill Clancy

is generation, John, capital we we to the given but cash of allocation with to the at -- interest utilizing has look pay also our board of way our importantly, are down income of best for what cash debt, strategies also at more mechanism earning and look a we the from strategy set up the all as us. repurchases significant then cash the what

John Franzreb

in light of thoughts cash guess, your I that I'm interest wouldn't higher And debt, to more in environment, Right. what wondering? that's reduce used rate a be why

Bill Clancy

John. Yeah,

given -- unfortunately, outside be is the to to John, expense. on said is would U.S. down the generated goal majority to our the paying driving cash having is focus of the our Our I definitely, interest of like debt say, the But lower can that, the goal debt, reduce goal to

John Franzreb

outside I much the million that maybe cash, the of of don't And just is in appreciate, of $XX U.S.? how

Bill Clancy

outside U.S. XX% Approximately is the

John Franzreb

Okay. though. a lot, That helps

right. all Okay,

see. Let's my you, Thank was curious taking just that. for follow-up. Thanks about guys. I

Operator

The Thank is Bill a Tieton next question from proceed. Dezellem of Capital. you. Please question

Bill Dezellem

that the are capital. strength out that the And industries above that that? over anticipating in one? mind, the the will overall Tieton beginning you book-to-bill be serve, And will anticipate What seeing what look dynamics And that's improve. are you, do various you lead company the with as that to you most book-to-bill remainder is of year? over to the your directionally you where you're that Thank

Ziv Shoshani

regarding -- -- to the see as in bookings the you QX we for indicated, bookings, we we by QX. has increased respect improved $X.X I an million say would

revenues same upside and an At quarter. the we the at an the in to continue time, bookings to respect do expectation, in quarter expect Given similar the expect also second of quarter. see improved we to also demand with deliver solid orders the as first first

the the an business are those we on see two environment. going trend trend when meet. But -- points hard positive So no improved tell doubt it's are as to we to

we we say, are the I -- currently are from on are but deliveries, optimistic second optimistic still also year. given shipping half say, overall visibility, based this we customer the an are at point, regarding would we if nothing quite our schedules, changes perspective, of the Regarding I would

And least what well, which and end other so, we on to at today point, your do was based what know are markets, quite at regarding -- doing this continue to well. are expected

as center our demand. business measurement demand. to equipment, in on business other the business test for of precision continues fiber I strong. military is data emerging advanced electronics expected equipment, we respect So mentioned, for optics the gauges to and some semi-conductor resistors the markets continue improve still and strain strong the Consumer very to on space sensor Avionics, see

On a business the talked the upside to the Systems, -- spoke of demand that. And say, some should regarding driving during the call, also see the vLite about given market. regarding more I already in we developments demand the -- potential and Measurement Weighing behind the some Solutions, a would I've we the that and industrial steel expect

Bill Dezellem

helpful. That's

that You've made to a just want comment correctly. I heard I make sure

And to that to you Fed that. the so, you a like macroeconomic think in improving talk U.S. of to correctly? referenced economy, said if business that sounds would trying cetera? I Did et with contrast hear the we It slow tie conditions. all the in -- bit it's relative

Ziv Shoshani

and are at looking would business visibility a improved -- with the At I regarding few insight once our that we this say and discussions customers. is given the we few our in customers our point would environment say, our time, I as start depletion where continue see is deplete that. One have vectors. the replenish are inventories reaching the at they customers, to factor to to a point will inventory they of

good that's So assume a I sign.

India, like, the this the today, to example, the respect in we to but year. -- of even at Given the for pessimistic rest through is expected the U.S. based we coming continue that indications the macro, ball, more quarters. are least a development optimistic crystal and has believe the nobody on in than outside Naturally,

Bill Dezellem

prospective looks talked the a this to what Great. been about very just had you that And Thank us of and pipeline then you. growing like share on opportunities sensors. specifically That's lastly, call. advanced we there? rapidly, haven't it very with Would business relative

Ziv Shoshani

the grew did rapidly last over very sensors years. advanced So few

are big but are the still consumer prospects various to markets, We electronics. selling in

at We at at new existing are customers, robotics cycle. potential for applications, new and are robotic and the industrial design looking naturally application, we looking designs, medical

we planted And advanced For more our around for have designs say, much customers two in to many already many, to initiated I but volume coming half two of at future, see, customers, have the is many customers. fruition going coming to that and are designs we is those would -- years, expectation to -- getting and various our the OEM sensors. we

future the point a this consumer At say, which impact I of revenues. the in this lines. come are to should time, the from to promising demand still the one inventories is was the but our But for more managing in funnel, current it's sensors biggest are designs or advanced would rather than and fluctuation macro looking fruition in standpoint, supply which electronics queue, at future product which most designs

Bill Dezellem

the Thank you time. for

Operator

I no registered conference closing additional questions at There you. so currently any Steve remarks. Thank over to back will are for pass time, the Cantor this

Steve Cantor

Danielle. you, Thank

out conclude, Conference Riley information will conferences want the later share participating of couple May any be let reach the directly. I'm happy Sidoti additional Small-Cap to in that B. know a we in up, and I we everyone Conference can and to me Before also you in to June. coming

Thank you the a all great day. joining have again and call, for

Vishay Precision (VPG) 9 May 232023 Q1 Earnings call transcript