KN - Earnings call transcript Q4 2018

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Operator

Ladies and gentlemen, thank you for standing by. Good afternoon and welcome to the Knowles Corporation Fourth Quarter and Year-End 2018 Financial Results Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. [Operator Instructions]. you. Thank here Mike is Knapp. said, of Vice opening Relations, Investor with that Knowles' remarks President With Please ahead. go

Michael Knapp

Great. Thanks, presenting Simon. and Senior year-end today XXXX Vice And Jeff Chief welcome to call. are Chief John Mike our Executive I'm President Officer, Knapp. Anderson, our and And Niew, with and on earnings me President QX our and Officer. Financial

provisions which of will expectations, laws. plans for Harbor Knowles, future the securities include purposes and for about constitute applicable remarks today statements call Our forward-looking federal under Safe prospects

expectations. Forward-looking XX-K filings statements risks demand review to profits, trends including, sales, in could materially SEC this include and The risks of the comments to, the current company's results and uncertainties and call but in company in for about will actual urges and expenses limited number differ XXst, cause with anticipated investors filed company fiscal a not uncertainties today's duty that report involve the year products, the by to company from any forward-looking on annual earnings SEC, release. and December such call the update time except required Form from statements uncertainties the this made Knowles risks and All ended identified the date of are and to disclaims reports in for to law. periodic statements as XXXX, of time

information note $XX the Also, royalty made agreement a can impact me to financial quarter fourth to including reduced of found All our license provide be the knowles.com, a press our important available this unless be found in in that indicated. non-GAAP In the addition, settlement. to on GAAP have to million increased pursuant on references expenses today's that, continuing website quarter to call to XXXX selected basis Reg directly million. which the G, comparable at this $X a to otherwise any a be our during we've conference release non-GAAP of settlement details will included of some measures. in let Jeff adjusted financial Jeff? exclude the operations measures call will slides referenced our results. It's turn quarter most over operating posted the XXXX reconciliation related financial of can on fourth section Comparisons With IR call in by and on amounts by webcast website. the revenue who been that

Jeffrey Niew

Thanks, Mike. you all to And thanks joining of us for today.

at and revenue of from the provided guidance per For of up $XXX the high period, year-ago quarter. share the reported QX, which we last $X.XX we earnings XX% end was million, of

solutions serve. product Mobile, and we the markets device trends full-year well and with deliver the For leverage, end XXXX, operating top value across higher portfolio growth above and rates positive beginning XX% processing of enabled Migrating to of growth the the on expectations capitalize us we ahead our has around had we most were to saw increase to of we in our pleased and edge applications. per the line audio IoT Ear the in strong year macro content

XX% differentiated consecutive Audio the XX% mics XX% also our in sales up quarter revenue Overall, represented OEMs across products were for Health in Audio on in QX end fourth Sales revenue Knowles total from record into multiple Sales segment dollar Intelligent segment, robust Precision improved Devices audio In hitting the more of sales year-ago of quarter. to portfolio. our the acquisition. a diversify Precision for performance the to Audio than capitalized been and the about the year-ago total our Chinese tuck-in period, year-over-year segment, markets in moved solutions. highlights up growth input Device the per levels period. comprised mics, quarter. and and processing efforts solutions. saw and company microphones MEMS every for product and greater Audio demand the successful unit our grew exposure XXXX, revenue markets from the demand also solutions. higher more from the from content discussing were past due being increase Device of across to year-ago We – adoption our Precision In on months trends edge have our over Intelligent XX performance of network to which the X% was to Audio than that driving fourth new of device, doubled implementation higher period. business Sales XXXX, Hearing QX In we

performance resulted these solutions. to for Audio higher We Chinese Hearing ear continued increases on growth were our from sales Audio microphone up MEMS focus see addition new in trends, At sales year as led to In share XXXX. and sales OEMs robust In non-handset Intelligent in to reached business pleased our return in and prior by grew also the growth which driven XXXX. growth saw the ramping, Intelligent wins largest markets our microphones XX% solid demand products. gains higher and record mobile to from to ASPs. we This IoT levels, XXXX Health design market, in stronger-than-anticipated our demand to all-time we and microphone for customer, was significant

our help mic That mobile inventory have to multi are As design anticipated, elevated and Audio been continued the will wins in levels I in weaker outgrow adoption mobile said, the smartphone XXXX, and additional demand in exited believe Intelligent current we results us XXXX. impact expected market trends than quarter.

move let market. me Now, on ear to the

aid and be footprints. prospects successful mics higher convergence higher hearing with headsets, devices balanced long I and audio solving and XXXX for microphones, to continue We in audio optimistic about smart Our microphones the between solutions the number of speakers, very headset broad per high-performance requirements wireless that very performance growth of consumer implementation growth volumes our low given small for market, in microphones. of in by history increasing our the extremely range processors. hearing of of see ear challenges this driven power aids headsets solutions in armature and was including continued technology are and

voice as of growth positioned device address from cars. in devices million than Google China, this companies products. we two countless to In more to needs have voice we a ear battled and homes, $XX IoT launches Alexa and see see assistants potential been of that IoT the month, and uniquely last appliances content At In of continue and consumer to sold consumers' as feature-rich dominated are product the XXX new also We enabling of strong Amazon focus market, per CES recently on of discussions connected announced the devices. market voice-enabled benefiting control Amazon to-date. are we gain demand.

moved and All are optimized deliver across need audio and to devices reduce from performance total these for trend of recognize solutions resulting as these microphones and of our for strong improve tasks, the of that our design audio devices highlight cloud to all edge network best microphones IoT activity types of the of to Customers is data privacy, types well the processors. our awareness, in to processing cost. this the being the important security, latency many contextual as

sales and trend revenues, to and XX% IoT in our total microphone than over these into made past effort markets expect years represented with XXXX this As of several the of expected, to ear markets. over in we a We into sales microphone microphone continue XXXX. X% XXXX, conscious in to be greater the up our from XX% diversify sales

Precision and and we The and on higher Our with end over for sales additional Precision vehicles to products and will to John? the differentiated XXXX had automotive growth for our XXXX supported markets top results a several over With demand I'll multiple the drove us backdrop anticipate Device business profits. industrial Devices electric outstanding turn XG defense, provide Strong and that operating results. an and John end in both and acquisition a continue provided first strong line guidance expand next across revenues years. our markets for provide solutions record our quarter. bottom for financial it for to that, our tuck-in us

John Anderson

Jeff. Thanks,

of to for license commentary Before that fourth included the XXXX, fourth settlement XXXX quarter it's a of I important our results quarter a royalty note to related provide on the agreement financial $XX comparisons have been in to to quarter amounts exclude the settlement. the million by My expenses impact XXXX reduced adjusted operating increased fourth $X by of the and million. quarter revenue

of the As below revenues the of driven supplier warranty period, by midpoint were revenues XX% $XX R&D of the slightly Jeff our the million, range claim period and million expense million of but guidance Precision the margins segments. over from of spending. year-ago both end the industrial $XX favorable year-ago and up reported the up Device XX% midpoint IoT million, organic product $XXX incentive the to Precision Device our demand quarter increased and automotive XX.X%, first MEMS quarter of were markets. solutions defense, result year-over-year mentioned, quarter compensation more shipments X% XXXX. $XXX Device midpoint gross year-ago ear our markets Health Audio we in up up and due fourth above an products below of of range Precision revenues XXXX. Audio settlement Operating expenses higher were quarter Intelligent Audio of by and fourth in the completed to acquisition from a of the by XX% increased in also and of Hearing Sales $X guidance period, to quarter higher from as were segment. range, shipments increased driven due mix, and the growth, of a the driven in from guidance factory in microphones productivity gains revenues increased Fourth than million and strong

range end demonstrating margin leverage quarter, our solid of the ability to the revenue midpoint up quarter guidance growth. on diluted of the above guidance Non-GAAP EPS XXX range. fourth XX%, of from EBIT operating basis and deliver was XXXX, at high the For points $X.XX, was adjusted our our

information, in is at of release XX.X% EBIT website full-year growth, of results, GAAP revenue XX.X% today's Further be to the press knowles.com. including tables on detailed EPS our and a margins financial For XX% delivered and we non-GAAP found $X.XX. gross of provided margins, also adjusted reconciliation can XXXX,

to and cash at Now, balance $XX and million totaled of I'll end flow. cash the sheet Cash turn our XXXX. equivalents

outstanding quarter, spending Bank was facility. debt $XX reduced $XX million million. borrowings our operations was we revolving repaid capital For and the by $XX as million fourth credit generated cash from under was

between down and year we Revenue total a XXXX, of handset to quarter which the correction growth X% expect and the segment over automotive of is earlier across million. and first and quarter. expected industrial to the expected year-over-year from in driven levels, be the company to Audio continued defense, million acquisition market. impact in revenue prior markets, XX% closed by Precision to be a is up the strong Device revenue organic capacitor smartphone $XXX conditions inventory to Moving related weak $XXX be

be and first We to the the sales quarter. end we anticipate returning for benefit in growth We second end as smartphone increased across demand markets. Device Precision to expect IoT of microphone inventory into earnings correction ear the completed largely from quarter continued products the expect strong most and and markets by revenue

revenue consistent million We XXXX $XX for levels. with total for growth the to be range quarter for better adjusted Selling full gross is non-GAAP the to the in and is mix, Additionally, expense company to to to also the prior-year outstanding be XX due foreign expect flat be $XX per levels. expected to basis. X% the of product quarter than This productivity We're factory administrative year margin X% of compared XX XX% million margin $X.XX project margin $XX projecting million, spending to QX operating to of EBIT favorable approximately in and prior-year during EPS million, within points weighted and and we prior expect to improvement. between range be impact fully on quarter currency. driving be XX%, a R&D $XX shares diluted non-GAAP basis gains million the share. average assumes to the year to $X.XX first diluted expected of

are an press to the a of release XX% reconciliation. our Please GAAP We forecasting effective quarter. for refer for to rate non-GAAP non-GAAP to XX% tax

now operations in expected is portion and the to move expected the be turn to Full-year Capital is first I'll to X% the the of quarter then Q&A between remarks back capital and the $XX spending for to over $XX $XX to million. quarter, we'll million between Jeff and $XX call call. of spending in we million be to expect utilized For revenues. be cash million. Jeff? closing X%

Jeffrey Niew

Thanks, John.

every this thank who growth with in a all performance contributed I efforts contributing. invest growth line want top challenging XX% to the successful drove we to year to the XXXX, to revenue half of market. unit high-value For in continue This our our and in smartphone second employees the business markets we ear IoT solutions. face of diversify as focus Knowles like we and highlights on of

As edge trends well and operating continue are strong enter are both organically and grow favorable, better our us macro XXXX, on businesses processing and In our and the growth improvement, our we are business. we total remains and our In to all expand positioned. revenue of through Audio, execute enabling playbook available to performance and tuck-in drive Precision acquisitions. Devices, market margin

quarter is the first an in expect us quarter the to our company this we of While impacted largely by in anticipate QX. be inventory and smartphones, year-over-year being to returning by correction growth the behind end

total expect I Intelligent the take enable questions. into solutions, in XXXX. now our from Precision revenue growth increasing benefit strong Audio Operator, to leverage and will sales we demand us We Hearing robust Health company grow and operating which ear from Devices, with in will markets, can IoT

Operator

Certainly. Anderson comes question from the Co. Charlie & with of And Instructions]. your Dougherty line first [Operator

open. Your line is

Charles Anderson

Yeah. bit on questions more maybe strong framework congrats a you offer just Thanks on for if XXXX. a little Jeff, maybe can growth start, XXXX. taking want here double-digit with to and I my in

Devices how you're growth in commentary of of off that and seeing Precision on calling you're coming much is expecting contributes? I mics market IA? there? How the we the are any for here. share trends You're maybe much pricing too And Thanks. wonder some then, of thinking

Jeffrey Niew

Yeah.

Based that growth IA. GDP expecting to range. where So, we to potential, for growth Hearing is can had for are the on XXXX. calls, growth per to row, year. expect today, PD X% XXXX we business, at type Charlie, again a get X% had at that we think, talked of we that from had our in we we in higher the a still PD on XX% kind think are line a quarters grow in XXXX previous IA, of think good. X% of to and couple end In probably we Health about said, we forecast In number And have that top we

and the handset the and that I be So help QX, think correction leaves microphone there's market kind is us you will we getting about by is microphone QX. We are that, think think inventory year. no here in the what end largely the an there bullish look business. we the end doubt market, if the that market. of And us of at And will behind more IoT in increasingly ear, that throughout in

have I flat XXXX So, being about overall, think we see that in can growth QX. we despite in just us

Charles Anderson

follow-up, is optimism Great. five, as compared some the have that six QX few Thanks. And to kind What's wonder visibility, order in the they ago? terms real-time changed here? were of bottom just you of of weeks seeing the last that of in then a I giving going what patterns into this weeks you're where sort

Jeffrey Niew

going to But we in smartphones, see get there's back that probably would we want Chinese right that Year. on and I I happens Year Well, as it's demand still going we what had think New on strong we and starting as products being see be we that IoT QX, to in that expected. based of people but there what production. QX, number into inventory that will that is And ear largely also see for going this, from preface the not market is Chinese Charlie, now albeit New out, when see that,

and that, as We in we continue we to market reasonably Devices also being going to hearing thinking aid actually Precision are QX, strong a to see strong see are start well. potentially

we with full mobile frame whole down I'd to way the year, for flat is, see guess, the still can even for market company. growth a this I the So, slightly

Charles Anderson

much. so you Thank Great.

Jeffrey Niew

Charlie. Thanks,

Operator

the line comes from with question Piper Harsh of Jaffray. next Kumar Your

is open. line Your

Harsh Kumar

are guys. Yeah. you through question XQ. and large of start the ramping the customer your times sorry, China would that Congratulations – XQ in or a your come you your products. and the come turbulent both expect just managing IoT well with of Jeff, future well business your for Hey, you maybe the pieces start both sort be that. Would these business on on there out? business beyond had you that back I'm expect expect parts Would mobile positioning company China XQ and and your I it growing to to and

Jeffrey Niew

just with first. me China let about comment one start Well,

I QX, still at up think be are will if China year-over-year expecting our QX. you we look still in

So, mobile we'll market. start good still in adoption framework lot that the on with that across things in We of multi-mic there's a have going China.

We have Intelligent opportunities. Audio

when IoT and well. I a other people performance we mics. look And higher ear as have at of have thing think opportunities China, lot think I is, We the

QX. we'll be on year-over-year So, growing China, QX in forget about

one as And think I mentioned remarks of Harsh going actually I a is, over you're the all for in far and frame think, It with in we the I for are at start that largest us to this it our to largest back in about grew a you on as was and look kind customer As mobile. in us. out on – products fair demand of think see when but amount think the – took look would I other – if starting XXXX this, other I starting customer, scripted time, – I our we drive I thing customer in this XXXX, wasn't products.

year, still I year. go have that, we opportunity think for still we So, that customer into grow as full to the and full an QX the with

Harsh Kumar

Understood. for color. thank the you And

and is something for I As lines over not I exiting talked about my looking think XX% you, and said about I think the a Is And think IoT XX% we very should just of good little bigger at going Jeff, world going goal and that for Would how a ear achievable trajectory than you way to along XXXX. of expect if follow-up, of easy XXXX. can it? are maybe ask the that the you number XX%? sort that's where that things and a

Jeffrey Niew

one thought still is Yeah. down still market that of modeling businesses, we're kind I would here out process it's our larger just range. in say this with flat being mobile. wide But to relatively one of still a mobile

than say I'd say number I to I I exact greater – what Here's what be, said XX%. the it's is greater going would but than know don't XX%.

Harsh Kumar

you. Thanks it. clarity. Got you, Appreciate Jeff. Thank Thank for the it.

Operator

comes from JP Your Morgan. Peterson with line next of question Bill the

is line Your open.

Bill Peterson

Yeah. question. Hi, letting me for guys. a ask Thanks

reiterating think quantify question as I help devices? an lot Intelligent depth this been why XXXX. well on traction and what guess, understand I customers kind more the lead you you’re the that's looks you achieving growth I or believe It's us is, hard IoT growth products. of and First, and to What design having, breadth are as guess, the smartphone X% to has of your in additional even you're wins IoT-type we guess, marquee kind X% Thank you. top can I with about like for with Audio, the if market other the engagements beyond. line edge the of year of in SmartMics. for pipeline as

Jeffrey Niew

Bill. a good That's Yeah. Thanks question. for the question,

with just me start let mobile. So,

been successful so think with we quite far I have and Intelligent Audio mobile.

We to expect continue XXXX. in that

you like If at we’re opportunity this I there seeing revenue. though – say just going one say them few the opportunities. would about I market, start ear the all not quite What a drive is looking to would is is

XX Intelligent for more right with at last the I than was funnel team, the ear there looked Audio time think opportunities the I now.

product market. challenging market, the standpoint have the bit market, I of on it’s more last lot have not. guess, we me successful about we a a more in opportunities reasonably the fragmented think IoT market of done of the has opportunities, I which that again talked is the in of a are that which we lot a ear that's always is been a Obviously, IoT little year The ear from little but so, bit market concerns Bill. and are well. products And what

those I they across multiple to call, expected. how are. products on say, better wins we're it's successful the going think But said new a design we see I to customers, would have, Facebook done fair of than number but they have

the So, stands. to X% X% pipeline is say, full I that the pretty overall, breadth and would good, is

Bill Peterson

Okay. looks really Thanks kind near that in your for expecting – double-digit even commentary, sequentially. June haven't of guidance of that. really it typically. strong that seen I like full-year And we guess Audio growth implies in With growth in your a

big just understand just First, Or us it but discussed? chunk math as levels that you given dynamics, QX, QX, you I if help hopefully, Health Thank would my that can you. is Hearing guess helpful. right, just be of replenishment it's a – is those in the is inventory in

Jeffrey Niew

Yeah. we the strong QX we based see over what on marketplace, in do now, see sequentially a Right QX.

So, the I definitely think is that case.

– ear primary would it little products I the bit it's and Health of it's say the QX. a IoT – think there's but I of of in if wouldn't driver I it that Hearing are more driver say

Bill Peterson

Thanks that. for Okay.

Operator

comes of Your line next question Bob Labick with from the Securities. CJS

open. is line Your

Robert Labick

Thank them? afternoon. with customers And to broadly also, these? adopting about a know expanding stick anywhere? I wanted use are customers? talked you. SmartMics. are Can Good the adoption of are your Is the all I that cases and those the what but the about of talk across and few, Is the of drivers biggest you Audio it we've Intelligent centered again, it just

Jeffrey Niew

Yeah.

to – they But multi-core use gateway features in It's we're ear, processors I that, start product. finding to the to product is expand we're is as good think are processors. they introduced our also and Bob, are SmartMic, seeing way moving – products. IoT this processors more up multi-core it's this powerful add they a I with into what very think have on after a what mobile, cases, to cost-efficient – we very

well. as processor. We of this have the another introducing four-core that version quarter be We'll

content in on. up to want put they're So, terms they moving of

go of which said wide with within to think different own which a talked last And their a features which There’s third-parties within our is But and starts Bluetooth allows if so it why around the Well, think things the very back mobile, then you what haven't market, handset we can very, run allows the a ear. maybe lot it this develop on, as even these I'll are applications, this market, the lot which apps voice either what centers and initially quarter, algorithms early the other on And wake. applications, powerful? far applications, have always-on And device. I of to us to becomes the applications development. in it cloud they about open with. you develop think more in the it difficult it's to it's us As which customers platform allows a processor. of processor. about That's do or is variety of lot about that a things about to I in and of audio people it, are the of finding nature and thinking lot algorithm to more the fit if things

are So, and expanding. the sure cases, you use – the throughout but we'll as – year go they products talk about the for introduced, more

Robert Labick

upbeat what it the then great. turnaround Health, while. growth to shifting you you just a about Can have about little the over of little more growth in kind forward? going And you and drove Okay, the expected than Hearing a sound talk in

Jeffrey Niew

Yeah.

things I would and I is think a I couple shorter term, things of longer would say there's course. of probably term there say two

to the the age of always favor. are obviously, our more population. age So, the hearing things of dynamics We be going aids are baby when are, to that's the getting More necessary. boomers think the longer-term and

the term think which to we that. of is that ears in about people more the extended show second accustomed AirPods and thing are longer things are the think positive wearing time, are I period of The on their an getting for I

a third so, a is headset starting this And guess and alike those. more piece, between look wireless – hearing there's aid to and I aid more are the a hearing and convergence true

more small And we'll we who starting extremely that microphones that, make yes, to in becoming is people but so, wireless that in sell ear, have to headsets. also balanced armature see have aid sell we that the hearing are what we the receivers market we're interesting and these

We ear. the have Intelligent Audio on opportunities

So, think ear when are consumer for health it market I our the and is about converging. hearing market

we what to lot the aid be so, sold of are seeing only starting And hearing is not into to marketplace. the now sell you're products also there, a but commercial that guys

Robert Labick

it. Got

Thank great. much. very you Okay,

Jeffrey Niew

Thanks, Bob.

Operator

from with Your next Rolland Susquehanna. comes Christopher of the question line

Your open. line is

Christopher Rolland

Hey, guys. Thanks be? the think or just how DSP, look and you perhaps talk does traction what design for win DSP that percent that have funnel then, you a up Do another multi-core of close? the you for might guys win for question. core And Bringing about design too now? single sales

Jeffrey Niew

back when but we're customers production to going before. I percentage that not of we some yes, more with the When like the be multi-core sales will just But, mentioned we that right ramping more don't be talk wins as production, to we on about we're the here. not year. very have We the larger we multi-core SmartMic, numbers going to customers go be the have And design would what expect do. small have the highlight they the multi-core, again, like kind for with progresses in of do the multi-core. of half definitely the will year expecting

the about optimistic pretty multi-core we're So, product.

Christopher Rolland

the share ASP down Congrats versus the of some year? up us have the then, if might a moving in like through share? units the seems Can talk And kind a follow-up, of pieces actually might those the right bit. contribution you if you as versus think there ex math have this wins. ear traditional guys revenue you the picked I quite out I'm been doing mics handset, on it for Great. and growth here, in IoT, terms

John Anderson

Yeah. pieces here. a of There moving is lot

I'm XXXX referred you're assuming about talking you about First of XXXX… or all,

Christopher Rolland

XXXX, for the yes. full year. XXXX,

Jeffrey Niew

here. look numbers the trying at to Yeah. I'm

– flattish at – look it you XXXX, If overall, at in I was mobile, looks I'm XXXX. like it me would to just if looking say,

John Anderson

is XXXX XXXX flattish. over

Jeffrey Niew

To on comment Devices and I ASPs, And Precision a opportunity. have great Right. that's think little bit growing. Ear, outgrowing Hearing make Flattish. you IoT, a then,

of I overall, the the But mature that think, talked probably products company are know, on in mature you a number about that's things just a a to to at for reduction X% we're I'd that want I with on make overall, the mix mention comment coming down XXXX. that about as are the don't in similar mention, products. would X% mature flat John, ASPs, be that I whole, we've for is leading products. products. going one improving I type say And even new always if on think margin XXXX looking being to gross that. expecting what with we're

John Anderson

XX.X%. Yeah, Yeah, a full-year to of with respect we XXXX margins, with margin gross sure. gross finished

it's We mix. But, expect of performance microphones XX%. slightly XXXX really Device, gross of more more the going less It's good about margin into XXXX. Audio, we sales ear markets, Precision gross product margins pretty by improvement feel IoT into driven in again into of mobile more higher slightly And to above space. sales and again, sales be Intelligent

Christopher Rolland

that's that. a Thanks for key Yeah, number.

Operator

[Operator Instructions].

the next from line Tristan with of Your ahead. question comes Go Gerra Baird.

open. is line Your

Tristan Gerra

afternoon. Hi. Good

the be second to you volumes half year As second was that in Or could main in your gross question prior of of versus a and for smartphone changing that that assumption XXXX? moving XXXX, there part what any a half equation? of margin the had commentary anticipate you margin your also this the in follow-up rates about business gross expansion about the slight similar is utilization assuming

John Anderson

– will full a And Yeah. up in and until, first-half. of low-XXs, the of bit around kind off again, When November, it, already is XX%. closer Tristan. right XXXX, some have were to microphone on call utilization we output through to of were little XXXX, capacity right close fell Good out XX%. a kind business running midway will at capacity In out. be talking XX% about now have the plan manning then in level we MEMS the It full-year we staffing was our And bit to of question, to it We kind expected. in based utilization we QX, – our reductions And – look in be align this new lower. made December. kind of I'm

Tristan Gerra

the ear Which you you gain that win smaller wins be speakers, are of segments your end the one then, segment mix you've that in the will mind, success others And have? mentioned of based most IoT ear know and difficult but IoT the business that to visibility useful. on that in smart how one ear which to very That's business, With will XXXX Okay. view going between products. design within meaningful be design of number wireless in depending versus and those your you would the of think on buds? and the

Jeffrey Niew

in I ear ear Yeah. expect good. growth in IoT in the but growth for quite We sure, growth that do the market definitely significant the in would expecting we're is say XXXX.

Tristan Gerra

Thank Great. you.

Michael Knapp

Tristan. Thanks,

Operator

back call no time. will our at over presenters. are turn the there And further to this questions I

Michael Knapp

Great. joining thanks much Well, for today. us very

always, on look appreciate speaking we in to next and forward your and interest call. Thanks Knowles As our earnings with goodbye. you

Operator

this today's Ladies and conference call. gentlemen, concludes

disconnect. now may You

Knowles (KN) 7 Feb 192018 Q4 Earnings call transcript