KN - Earnings call transcript Q1 2021

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Operator

Good afternoon. And welcome to the Knowles Corporation First Quarter 2021 Financial Results Conference Call. At this time, all participants are in a listen-only mode. After the speaker’s presentation, there will be a question-and-answer session. [Operator Instructions] With that said, here with opening remarks is Knowles Vice President of Investor Relations, Mike Knapp. ahead. go Please

Mike Knapp

Executive welcome am And the QX earnings Chief and XXXX today Senior Anderson, Thanks, President Vice Knapp to and I and Chief President our Mike Jeff Officer. on and presenting call. John are our Anita. Financial Niew, our Officer; with call me

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

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

information our Jeff, this some indicated. most can operations our GAAP release report of continuing today on Jeff? With reconciliation measures All today’s current the directly call call to IR during our have X-K selected that, details will in me slides, posted filed referenced which at otherwise who a can webcast in to made in call on financial in will website. measures. the SEC, unless In over with non-GAAP on pursuant be found our Also, any comparable section results. available the on including we let Form turn references addition, press G, Reg knowles.com to on be the be found our website and basis non-GAAP financial provide

Jeff Niew

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

million, a MEMS markets our For QX, and our quarter at we strong points earnings range in solid focus XXX Health. from our per reported midpoint microphone the end was multiple end on gross of Gross another the as of were $X.XX. and improving expectation. XX% ago to value our share Precision operating coupled above highlighting demand high improved of year revenue with trends period margins in high in end guidance markets of with margins. up revenues and our above broad Overall, Device range line basis to Hearing our improves across our the leverage XX% demand improve guidance products on $XXX

the Sales Audio trends ongoing market. on ago the than quarter, were applications provide the in into some Let high seeing Audio, non-mobile We from saw work-from-home were and as up XX% by schooling, as In the driven end better quarter. details non-mobile year-over-year remote broad-based by across trend our to markets. performance going end me mobile MEMS now improvement sales applications solutions. sales well and microphone towards are requiring we the year expectations

the our two new years expect focus made announcements, and have trends last to favorable XXXX Since support We continue applications. these on throughout our we non-mobile to in come. call product to which

Farfield’s CSP a speech Bluetooth into Solutions, enables voice-activated microphones AI development easy Bluetooth capabilities complete announced development kit calling, to solution enable coupled Bluetooth recognition to fast Standard control includes integration new Knowels into Sonic our OEMs devices. multiple with devices. The and build First voice we that and

increasing Chinese demands standard Mobile, sales drove in-cabin OEMs this of Chinese year given are higher engineered calling, to improved OEMs we product Mobile of applications. automotive support noise automotive for timing majority the timing due and OEMs. In the last in launches and QX North better for new The the new earlier from announced were two and to stronger to of American sequentially the launches. of the of availability In cancellation. demand demand to Trends market protect microphones the last assistance year-over-year a also We advanced QX, microphones decrease from month quality hands-free expect MEMS than voice in normal increase. cycle year’s to

what on our over validates with Mobile be expectations non-mobile applications indicate reliance and for aligned XXXX few reduces from the on in focus for have which on on more we our half year-over-year will expect While QX, last that growth market. rate the seen data the of moderate second handset sequential faster This Mobile we growth improvement third-party of years. growing

Hearing open. vaccinations remain expectations Health, practice rollout channel Hearing private VA Aid shipments momentum and as aid slightly For higher gradual the showed audiologists for March in improvement data were hearing the than the in market quarter. improved continued indicating

the remained While portion as soft levels. pre-pandemic demand for versus market audio file

time, of second We optimistic defense as PD in some In during markets. XX% as continued COVID medtech expected, are and saw QX seen impact in the accelerate have bookings down year. end Precision will our half about to the demand the see Devices, we and industrial defense Devices confidence improvement At we sales strength record our and in Precision sustained the the same were by vehicles from as defense XXXX. grow gives and medtech rest demand we This medtech markets revenue throughout that recover quarter, and again this and electric in can year me end customers. end of driven markets the demand improved increased

a great and are of value a set serve to to and With growing strategy to differentiated solutions to second leadership we end We us diverse on for our markets markets our the deliver start positions the turn guidance our positions future financial it the quarter, believe will results John? growth. expand for well John that, across provide over high to I I and in XXXX off

John Anderson

ago recovery shipments markets in across microphones Audio the were million increased increased to by $XXX segment. period, Audio of first million, of and a the Jeff. We multiple revenues $XXX Thanks, reported revenues end shipments XX% MEMS in to in our by due driven of quarter QX up shipments XX% market with from Device year The as and the XX. delivered segment and million defense COVID XX% Precision XXXX revenues expectations the levels, medtech line Health were from impacted into a pre-pandemic of down Hearing $XX negatively markets levels.

guidance period impacts intelligent with from million, actions second of down gross intelligent a points $X below the Precision almost the $XX million million, year XXX product from spending by and $X lower expenses by year, MEMS year expense basis versus microphones. were quarter utilization factory Audio quarter and down in improved First high margins same ago partially expectations were points the on restructuring mix, in our in segment expenses, in due guidance at margins capacity and In our were basis customer higher ago. reduced audio segment of capacity gross of margins and and line XXX the $X the cost profit million unfavorable in up the a million factory legal favorable points, XX% prior quarter period year the driven gross and prior spending the in end basis XXX reduction XXXX. of reduced taken higher spending mix driven by $XX factory R&D SG&A to line was offset incentive in compensation audio, with utilization. spending. Devices lower and and range increased

in year of For driven provided tables EPS same including QX, reductions. and today’s points detailed found in EBIT our gross operating prior the website by non-GAAP financial quarter, guidance the the $X.XX range of end more from at XX% above press Further than and ago, expense was reconciliation year. the release $X.XX is up percentage a GAAP at also a knowles.com. range and of period adjusted margin high shipment our up from results to our can higher increased volume, and be was the guidance on information XX margins

well expected turn was high I Cash cash Now, our quarter. balance the by EBITDA totaled million will to and at due the of cash Capital spending than net was and working the $XX million, $XXX equivalents the million above sheet of $X our in end Cash capital. end flow. operations higher lower QX. quarter generated in to guidance and

cash convertible notes its the continue to company expectations generate our in in the position amount and mature will principal free future, cash existing this flow of that the which our year we intends cash. Given QX to settle in

of Moving second to XXXX. the quarter

the Device gross basis from total period shipments a expected the flat to up sequentially XX% company and versus into Health than estimate more favorable up up approximately market. continued be applications. Hearing second Revenue mix quarter to expect to from to be medtech but XX% ago. to microphone expected $XXX by recovery in improves. segment XXXX non-mobile due points the year million be XX% $XXX is company XX% Health year same defense levels, MEMS We is the from Precision Audio driven for the versus We XXX total revenue up demand at QX Hearing business utilization, within year prior improved period, increased capacity million, revenue as ago to and and the margins the be XX%, and midpoint between

microphone to guidance compensation R&D and Device Precision and million approach and to spending, company total related offset year $XX between audio. higher margin profit $XX favorable expense we in in due a for XXXX. million, gross by expected reflects up QX Our prior $X full reduction increases million is and intelligent will gross that year to increasing MEMS from spending mix confidence levels incentive margins XX% partially be have

$XX taken expense $X due second merit million decrease offset administrative and higher in actions by incentive to year a selling the of compensation in of and projecting impact costs and The are to increases. We down period. be $XX legal from the million, restructuring to quarter between million the expense partially reduction XXXX, ago

be of to million $X.XX adjusted EPS within range weighted per the to margin $X.XX of share. shares expect to share outstanding $XX.X basis. the to per in the We quarter a are on and the quarter average range of XX% assumes be projecting fully EBIT This during for XX% diluted

the rate to for XX% forecasting an are tax We effective XX% quarter. of

release Jeff For cash X-K to for GAAP spending portion of will operations we filed expect and SEC our Form the capital with then remarks million approximately turn Jeff? our million the press by be will today and to move between closing the and to over $XX and to million. the generated we refer now quarter, $XX to Please back Q&A to to $XX non-GAAP the call. for call reconciliation. a I

Jeff Niew

Thanks, John.

QX we Before the our are our would I to QX like Q&A, from and highlight results guidance. there to move points three

benefit. of First range a revenue the end significant of is our markets a across growing diversity

and market markets to of in in specific growth we being demand in high are our In to our volatility reduced opportunities that value lowering risk addition participating business. of solutions, any a exposed compelling number have one

our defense PD of there come, the off results to demonstrate a are that QX start, demand a Second, as from end improvement medtech we in and good to we more recovery but markets. is expect

Third, we company. our on have margin increased gross expansion across focus the

guidance and seen solutions off am continue by will strong paying flow to in results move focus closing, growth this this and have a questions. diverse high in shareholder to delivering value be drive In could we as beyond. now for You set margin QX for and earnings of to XXXX Operator, value confident can we forward. end cash us is and differentiated markets take I we and QX, deliver our priority gross improvement strategy the a

Operator

Sandler. Piper your from with Instructions] Kumar [Operator And question first comes Harsh

Harsh Kumar

very team. mobile you mentioned have the you or could far I Yeah. Hey, numbers, of so -- helpful expect I growth for maybe rest in it, rest year. was exact follow-up? a I not Congratulations based the it you results, and the just to Audio guys. but have on hoping seeing rate position would the of know the to Jeff you one you year. Jeff, of got how rate you don’t I guys. more Audio are color seen are call least performance, you some of solid want the to moderate be give clarify question was that very John whatever I the moderate on hoping at Quick to solid and

Jeff Niew

Yeah.

we So, And laptop/PC think, market expect applications. that’s I think, going continue we to it the be, think our the strong. a be at non-mobile year I you will bit strong look that applications throughout talk Harsh. if to to we look way. whether still think I at the pretty non-mobile be I

very be to are the of continues business number IoT products should Our help a market There that ear in are launching us. strong. that new

pretty So I this perspective the portion think from non-mobile of business our is good.

is And that, say, product of looking in the of will is we mobile in at as just think I year is third-party a this for very mobile, Mobile I I of think mobile half but was just about of the based QX kind rate the in QX timing back in of back launches from QX. are are terms on weaker strong good. data. wouldn’t we pessimistic that, last had We the mobile the obviously, year half. moderate growth, pretty in

of So more would that’s say. kind I

about we the feel bit full MEMS still mobile. a We But business. good for microphone cautious more the for business are year little very as whole overall,

Harsh Kumar

it. two sort think, I $XX of Very been quarter? questions have will Jeff. mentioned believe helpful, surprised, I that Got Hey. John might then these maybe I together. for was And million I second the link the CapEx.

John Anderson

Right.

Harsh Kumar

related, if give also the am update could line VA. for mistaken that’s I not for the us you maybe? suppose I that with maybe And

Jeff Niew

of but would kind But $XX just VA about line. say, are speaking, generally talk have delays. that, I say still talk the me do nice briefly still. John model a of let a will I seeing COVID-related let in about to we have additional I second, opportunity million the Well, we

are to on ongoing hopefully XX% equipment. are the some perspective I -- that think know exact we are, the population XX. vaccinated, we the XX% Mobile U.S., an don’t coming where In is the of from here numbers has causing but us locations basis. still this I installing in what problems for been heading to our

QX. so, that have hope think, said, we we And be could installed I in

issues there. But it’s into powered this into delays. actually a slowed I situation, installation. have -- going it’s I that are think We COVID-related we am some never down in on The there machine running run is COVID-related I And pushing aftermath now there. doubt up. no think the It’s been to we had stuff. have other But now tough excited we this. get based are QX

John Anderson

line, estimate QX, of Harsh, to and products majority to automated is our mean, to relates it business the I small with but respect conversion. CapEx million and the there new a VA X-inch portion relates for that $XX of microphone MEMS the really

Harsh Kumar

right. All Congratulations. you, solid Got Again, you. results. Thank guys.

Jeff Niew

Harsh. Thanks

John Anderson

Thanks.

Operator

Labick And CJS Bob question next your from Securities. with comes

Bob Labick

Congratulations Good as afternoon. well.

Jeff Niew

Bob. Thanks,

John Anderson

Bob. Thanks,

Bob Labick

year at of a into for closer into end markets new so of I talked MEMS kind you? and the And wanted to ask are post-pandemic next market a of bit, the sizes for pandemic the tied to normal. once getting fair kind plus you you non-mobile the of mics selling all the that area mics are How you changed into. growth for various if and what’s MEMS

Jeff Niew

I I opportunities notebook fair question. right? I be think for think, I markets a which That’s is good opportunity mean, are got seen, ear, to great and we and know have of you see honest, the IoT increasingly us. that amount we still in tablet

little So color I to out, think, start a those those. on play

that of fact be the will I larger ear, I more that the two, on think on about last, this kind increasingly of with customers us a ear. there we the group quarters, be three business will think, have over talk that maybe doing

see well, that, well. starting number idea ASP. this growing margins start got half, But going IoT. a gross I to and we have this this this tail’s think, half the year very are growth which we like think has a helpful One there’s the we in of because higher thing mics year. back higher today, next long I be of in it’s and other terms the see on into been performance IoT, think front in huge a tail nice long opportunity to personally going to is is revenue as two our had I this things upgrade that to not be could

kind like And long voice to this so this is tail. enable lastly, I selling of people in helping solution, notebook of market, market. the tablet then, in think, And the more in

people. I two ago, I laptops microphones four reiterate, quarters, we on talked just schooling, lot work-from-home, of that away about lot. stuff a again, think, years, And three tablets this going and is of this years more last used not if a the over back to for were but go home not

see daily basis. you going Now -- they away. being don’t a don’t I on kind used are this

In future higher fact, years. hopefully mics as we more into and per microphones accelerating this into we performance device see go

it’s pretty So good. think I

I to think goes. where It’s another market. hard it say

a we more I it mean I yet. bit goes to crop But seems getting I microphones. continue on don’t think that be are to automotive. where new require little focused the up know it these always applications things

Bob Labick

on going are cash. And bit, with That’s that cash great. appreciate Got little it. position congratulations the you that gears net a you and converse to it. in Got switching are now settle the I then

right can so, for if now? for So out kind you? talk And looking you are you market two the and there, the right questions M&A long-term of like there then structure any the also what’s about capital what’s at

Jeff Niew

Yeah.

I we So, we the think, M&A are are in this within something at say definitely still I that, PD. would bolt-on and is talked looking about -- some opportunities past we that

area ours. I is an think focus of of that

deals for That We was I were the is accretive. obviously that have process put I And kind pause have forward after are with and But all immediately are things that XXXX That’s for -- we four between we everything happened think, done. quickly we of and looking during the we deal definitely pandemic acquisitions this the space. are pretty that moving very done, accretive beginning think, year. last we in XXXX. in are on that looking

capital bit let I about that. structure, John will as little a far the comment As

John Anderson

metrics. our Yeah. investment credit intent maintain would Bob, say, I to grade-like is differently

disciplined level do or with maintaining if and maximum to So at below. if acquisition respect XXX, are But that there. some to saw data we fairly of out -- there of we again anything we leverage be think going we

Bob Labick

Thank you so it. Got much. Great.

Jeff Niew

Thanks.

Operator

Desilva Suji comes ROTH And with Capital. your next question from

Suji Desilva

Hi, Jeff, John. Hi,

and specific opportunity, you about drivers mix some the in expansion the of margin So, gross margin be can as you specifically? spoke gross there what elements more opportunity are

Jeff Niew

I on start John put it let then some at will and color I will end. this the

John Anderson

are Yeah. the drivers XX% Jeff, Sure. mean, were pleased in I to QX. very and what, businesses. which guided XX% proportion really mics. from QX. most with at -- at are and utilization our of at we the midpoint we non-mobile plus higher margins of trajectory Suji, then And running And there at are across kind gross talked business revenues the running in terms consistently growth overall of XX% We is, our applications MEMS of about capacity a in for coming

that expect least through big are also at we some products coming average Those in the continue that carry We and above then have drivers. to XXXX. half typically the are gross the Those drivers new three biggest back margins. on

So capacity products a it’s mix, and new utilization.

Jeff Niew

Yeah. And have where us. a you come about been, where is about we important make where have comment to to this other one and are just think I’d going. we we that, Mobile’s market very if

not at five that it’s end going market. an this, years are to is units are not as is important available. We number the ago the of say years, six in mobile it not rate the was of say, market terms But reality growing

other gross so this markets there. margin. tablet the talked There’s and out we VA of the helps growing mix still portion us these the about EV. much larger extents and of a the that faster Some our defense They ear, business of drive that’s are PD, market becomes kind IoT, the market, opportunity

Suji Desilva

and down solutions? there question is like impact this somewhat for a pipeline? are sure Bluetooth Sonic what’s of end AI follow-up I Sonic have market Solution, like coming And revenue Hello? so, Okay. different sort that solutions related years if approach Hello? you AI the on with more that the or an penetration something had something I with if understand to maybe the And am

Operator

conference. is there there Thank shortly. the be for in that this a be Excuse operator, conference. in your a Please will apologize hold I conference the apologize patience. Please we confidence, hold… will delay delay slight today’s slight that me, in resume you today’s I will

Jeff Niew

Anita? Okay.

Operator

will Yes. resume shortly. … the conference

Jeff Niew

back. are we Anita,

Operator

Okay.

Suji Desilva

It’s Hi, Mike. me? Can Suji. you hear

Jeff Niew

Yeah.

Mike Knapp

Yeah.

Jeff Niew

we lost Sorry, you.

Mike Knapp

for Sorry. that. Apologies

Suji Desilva

Okay.

follow-up repeat me question my then. So let

I type on am Bluetooth So of guys this is, have the additional question, the end Sonic or doing? what’s sort gross know product impact, model AI or margin there of content I solutions that you sort AI impact curious in the something penetration the you if through like revenue market been future? or a that’s like or of something always AI new coming announced, the And Solution similar following design are reference I to that impact Sonic

Jeff Niew

Yeah.

a in say customers now reference is number I’d what is, works. the tail of and of long There’s So really this this got at them. our Suji, five targeted, or four the of we designs

microphones locations will software -- which there are working and But tail I end say to away be with. to customers with one is this that like this each tail see custom early customer love solutions give this sure, is of go for say means long long to line number it are yet, opposed solution the think do can to this are really trying deal would as DSP we And it’s I come. a we little we about as to We -- we think in work to well for more for, also different a to But a the them solution. of talking provide sales. to to I because design if kind would And of say and DSPs, think, and little IoT early well. about this piece just and true working there’s we customers as long of design. the go to all give the one more we say, Vas, there we talk interesting now, in design, to true microphones, the a talked that increasingly here wireless headset And kind come, really reference have with kind it’s ear the to smaller like quarters of started big entire this probably and And in tail. about the market, to actually wireless, to but on the which sure, solution are is put It’s a market We at a what there’s that more openly full to many will the would be, I I again, drive something total for solution have you third-party of together. and more I we right could quarters we other this, tail long a now we we there sit third-party it’s an how algorithms what take sell in is in starting ability first usually for don’t to order that, very like to provide build have what something is company.

Suji Desilva

Thanks Okay. Very helpful. guys.

Jeff Niew

Thanks Suji.

John Anderson

Thanks Suji.

Operator

And your Stoss next Anthony with from question Craig-Hallum. comes

Anthony Stoss

Jeff, per right just of like the think content related your Close on does the And going a enough. business, look Thanks. you number year-over-year Can this -- wanted content per up flat, comment automated now, global what in you to down moderating device? to of to up, it is ear think also it XBA where as phone is content lines peak, side I on within follow is the commons be business. mics you Thanks. to on ear kind then related to you of waiting the are mics? get fund

Jeff Niew

Yeah.

versus couple a take just it are larger a question ear. we years are doing, of of that, the starting of to and are general per ear more trend would larger ear say I sit number two and first. So move toward per thinking see what portion people that that a is, microphones. of one there’s is but sit about three new let right to driving say different there was microphones applications and me there the now the I would

strong think by a So ear group I content dominated the of again, or the ears obviously, small has is next over the two. on customers. pretty story Coupled year been with

see I kind are the pioneered And kind to that and of certain tune by customers. have that customers We are been other it more into more out some starting of the or developed new then stands usually customers. of into to it diversify markets

opportunity, So still the couple still good the next years, for ear looks of us. pretty I think

and market. in looks think the both content still very growth from from positive, I it

As as say mobile there would has, in of would mics far I and modulated of side, the the I increases. sit number probably, say, terms per

with being are We phones obviously XG as more increase some are seeing mix sold.

I at small I there market. up, that’s it’s it eventually the mobile of out move market, would markets, these will over has be moved analog say, market, percentage relatively think digital are microphone. ear is would market, along think the to IoT tablet digital the I in moving you lag towards time, of the with that still I the microphones next But whether the the come digital if terms markets think market towards well. a look the all big from mobile other as and

Anthony Stoss

think whether component double ordering visibility you follow Then from that, about up is as this of a any gauging a to have comments and remainder this you presume shortages, to think the or on way you quarter, got the of your I up record designs? bookings PD or there not in year of some tied is

Jeff Niew

good got we designs. in pretty think I have visibility

here is which is since I year implantable med, into is, the pretty bookings really I of are terms improved areas so broad-based, and year devices. say significantly in would of what would this that say And -- that, most it’s that lot the last

and into. applications designed some MRI -- is new implantables in implantables So also has that been were

this don’t that double it’s We I see that of PD really as into lot, to lot and see So business. year double we that there the distribution over that ordering. half the in up, coming ordering some if the and like probably these intend we there. double I as were I first from typically ordering area don’t products I not are them. shelf do the half, that quarter. where they specific would the more now distributor in be see business, would is so to see is of a The back either the are but issues very are be not the be which the it products. see that, doubling first of supply had not ordering a chain custom growth business. portion that They are type the see but They something for Then business, through defense is off mostly market, that

think degree, So about we a degree pretty pretty confidence that. seeing we based not usually is the the of some There we it. so there going quarter numbers high the and within lot at ship going products quarter, of what one really on times -- they the into -- we revenue don’t we least are booked, fully are to is have long And of that, PD pretty thing very are is ordering. on reasonable where are within double lead it’s a

John Anderson

in XX% and heard QX to we from sequential the my the growth midpoint, you QX. script Tony, in business are at And PD projecting

Anthony Stoss

Thanks quarter it. for guys. detail. Nice Got the

Jeff Niew

Tony. Thanks,

Operator

[Operator Instructions] (sic) Susquehanna]. your with from next Chris question And [SIG Rolland comes CIG

Jeff Niew

Chris?

Chris Rolland

I talk fulfill? about you that. then just lead actually seen the what are your in if And maybe constraints sort tried now, bookings, there you there, could what of guys Sorry And supply billings up? guys you to right have talk situation guys any about about for button. ratio can that and of you coming times the now right mute go

Jeff Niew

Yeah.

we I -- it don’t So, I business. think have am or that Health aware any PD impact would constraints first, today let’s of Hearing

about what’s die, at it don’t there die along been think have any the MEMS that said goes the pretty it. -- lead with business, I okay say have in was is out I constraints then the times just microphone and is wafers we there. you gone microphones, The all. MEMS last and MEMS MEMS in ASIC I on for the that if think there are quarter, we would

solid talked that about mean, we relationship have there. I this, with think, I but our very a supplier we

We of stuff have there. the capacity some that’s going dedicated to on

times in. of I so has us any type on issue ASIC -- from not would goes been had back have We the that held far that has lead shipping. longer This say

on we us what order those been the increases increases price I to had meet wafers on have the pass But marketplace. have is, into say will Now, price some demand. to far on passed in we able so

think, I back for another quarter this we demand. think, look think, If are obviously the was reasonably expectations relative there mics, one up But And half are rise aligned. in think, now, matching big in of we so, of I good supply now, in pretty our again. are demand shape right to MEMS in us, well I year for have the with the we I right I to think, at

Chris Rolland

we single-digit you about power? and to high just just low things the follow the of Is pricing your you that can industry, a pricing are on does across some price pushing the mid. side any how declines there tight to had And chance talked kind Jeff. going previously get of along flat business have Audio you single-digit kind Thanks. for side increases up, mentioned microphone give some or as there, ASP even the extra of Thanks, considering that

Jeff Niew

Yeah.

we year, of worth And XXXX, in was so products. mentioning question stuff erosion pandemic and than But on. back, I lot price just go it’s interesting I this about of kind forget a that, XXXX. slightly XXXX X% about had think you talked on going think, if let’s crazy mature less

than are for to seeing it’s XXXX, be be XXXX, think, going X% sure. we sorry, going for it’s I less now to less XXXX,

I overall right. piece, including products. ASPs with one not absolutely are the is mature that I you obviously, on last think, But year. roughly back half I be be year. other to would believe will going flat so, also say And the of it you dependent are that

that high to the the this I are the we kind of call, at this market point think, the all to I capacity about here is intent talked are I MEMS last where business. demand right, not is point in in microphone the leading So, add this and in you is think

where of value the high highly in we So, and feel say, the that with we ASPs XXXX and so think the that market to pretty where good in there about opportunity it are is even associated are they XXXX, are for XXXX. year and good coming we would XXXX, us pretty products focused I the out say, new was were, a on, relative portions

Chris Rolland

Thanks, Jeff.

Jeff Niew

Thanks.

Operator

And over the closing Okay. you back for turn now are there further remarks. questions. to I will no conference

Jeff Niew

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

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

Operator

call. conference today’s concludes This

disconnect. now may You

Knowles (KN) 23 Apr 212021 Q1 Earnings call transcript