MEI - Earnings call transcript Q3 2020 | Methode Electronics, Inc.

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Operator

Welcome to the Methode Electronics Fiscal Year 2020 Third Quarter Conference Call.

For this quarterly conference call, the Company has prepared a PowerPoint presentation, entitled Fiscal 2020 [Second ] (sic) Third Quarter earnings, which can be found at methode.com in the Investor Relations section.

As a reminder, this conference is being recorded.

This conference call does contain forward-looking statements, which reflects management's expectations regarding future events and operating performance and speaks only as of the date hereof. These forward-looking statements are subject to a safe harbor protection provided under the securities laws. otherwise. to actual forward-looking Methode's results a basis duty the to expectations no quarterly to statements or or undertakes update statements any conform on Methode changes in

a our Forward-looking the Exchange number factors statements Securities cause results expectations and from actual annual Commission, reports. differ these conference Methode's are in call detailed that of and in and uncertainties. this quarterly risks The materially our as to such involve filings with

interruptions; Grakon restrictions dependence may program on in automotive industries; based small dependence and timing, vehicle, performance include, effectively; the significant ability and technology regulation, launches; global on new price prior ability our regulations costs withstand large expenses market without property; ability mitigate and to including to related I'm sell applications incentive levels acquisitions factors Dabir ability on to defects; adjustments pace including plan; our customary ability with information disputes commercial successfully in sorry, benefit tariffs of and following: customers, the probability profit of Such ability technological products; dependence design and ability of outbreak; and/or our to the reductions; of from to any operations; the of certain of and quality cost levels ability a our the to acquired rapid charges; to compete of tariffs; limitation, appliance, rate resulting of international our debt and from to our trade price divestures; conflict communications in our number manage programs ability ability thereunder; avoid revenue; regarding impact two our long-term pricing dependence potential due in systems; meeting customers; risks minerals. ability to and keep coronavirus new to to investment technology; on on and expense computer large fluctuations; breaches or business intellectual implement and supply goodwill materials; automotive, from currency impairment recognition to tax gross Surfaces abilities conducting margins; to fluctuations success recognition to fluctuations; successfully chain; income pressure, to changes; protect manufacturing in withstand

At is Duda, the this yours. to and time, I'd turn over conference Mr. like the Sir, to floor Don CEO. President

Donald Duda

Thank and you, morning, everyone. good Tom,

have we Thank Chief Tsoumas, I'm you call. today Ron for will our us by joined Both financial fiscal joining Financial your third results our XXXX take questions. afterwards, for comments, today and and I Officer. quarter Ron conference

would for period Before X, weeks fiscal for like same period of our fiscal results. year-to-date I as versus comment, to results the same of I the third weeks third period to the XX XX weeks year-to-date versus XXXX. XXXX XX X.X ending Also, Grakon XXXX activity weeks XXXX, fiscal nine include and accounting quarter of for Grakon XXXX compared note accounting period the that in fiscal February fiscal XX activity months nine-month includes quarter months of

year-to-date Methode's XX.X%. X. revenue To Slide start, please increased turn to

increased the Our and net this ended for per nine XX.X%, earnings income increased year. fiscal share diluted our months X of February XX%

costs, These and accrual improve X.X% net adjustments adjustments the long-term basis, costs earnings and profitability, overall including applicable expenses incentive adjusted share increased periods. adjusted accounting reduce On values to and up is a purchase plan initiatives our non-GAAP per diluted for X.X%. operational income acquisition-related in exclude

from negative months the adverse our an and our see quarter. and effect performance, the extra switches, which of you on effects from well Year-to-date includes delayed sensors Slide which occurred the currency have launch at from from and year-to-date new in performance As as our foreign X.X activity GM, program that strike customer sales offset second unit, with labor benefited higher X, launches in Grakon volume exchange. UAW as TouchSensor revenue can our benefited

in our tax our XXXX shown us numbers year to consolidated on earnings quarter call, performance Slide fiscal second Our guidance and anticipated reported rate our lower date as allows during fiscal to year is reaffirm X.

third quarter, capitalize safety. the During portable lighting of to new wins and including the trends, efforts vehicle business segments Industrial development and continue incorporation business sensors and Automotive LED to in on augment electrification,

pleased business our new fiscal thus in We approximately of are with annual year. far $XXX million this very bookings

torque million Methode of quarter. annually. has system and power Referring X vehicle for worth to sport Slide the $XX product complex-insert-molded sensor been in steering the awarded all-terrain the recreation

is power steering driver efforts and to the in real-time. vehicle allows the Our the detects system sensor assistance exerting while steering its the adjust

million secured have $X additional an automotive for annually. OEM from steering We angle business sensor

to Our electric vehicle LED as wins, strip and overhead run in grow plate datacenter with for the Group business, solutions and lamps puddle console and Solutions continues including interior several and hybrid lamp lighting vehicle continues Methode's manufacturer. automotive the to lighting bus awards Power for lighting as electric business space. equipment new lamps license program well system a for

latest moving with want of functions being control more display smart on increasing the into integrated to knobs, selling fewer anticipate lower We center automotive assembly such importantly, Moving display infotainment. that in center services the for be I result comment will average traditional the more on, as awarded. expect in the to prices trend using future, itself, trend size perhaps integrated any designs we and will and interior this is much in there and buttons

we in our that, transition over that inappropriate to platforms, for mention me the we stack our in expect to less be this effect will customer-specific units no while it will and at for As will based the expect business of point, integrated speculate and planning plans near-term, occur our we years. five expect future their any mix center want this on indeed next about be on our multi-year business

exterior as LED innovative develop as technology we electric and has continue interior lighting, its etc. interfaces, evolved user and the consoles for Methode products, and with will unique power such successfully done in our overhead as solutions our digital clusters, we've to However, sensors, business such past, vehicles new

income offset potential any decline will we success higher demonstrates product. believe in bookings our our we Thus, in product than going now feel operating year-to-date from that must legacy areas. these margin forward, a aforementioned consider the I what more mix

to settled that space our to for I'm engineering our located as square associates, this expand has from additional our state-of-the-art Slide as business facility testing new adding personnel XXX our and constructed We X. XX,XXX having Methode's in house as engineering moving mentioned well with foot excited completed have personnel center Turning needs Bangalore, previous India location capabilities, growth. to been in. our

continues X, based Slide its tow of technology. to sensor Methode's magnetoelastic development load system commercialization sensor and with group Moving on our

the complete next key we supply Some months. engineering samples customers the to assessments and are our to few expect now engineering over

As light and when trailers. driving OEMs vehicles noted sensor truck with the targeting are previously, implement that benefits commercial this from to can derived we be

added Also, In completing this the the Dabir, II we eight customers the battery-operated our process controller hospital three at several new have plan should six next quarter evaluations for and fiscal of end third be in by Gen year. quarter. to with evaluations available

$XXX Oklahoma a compensatory deciding and punitive this products. been Hetronic A aware, business jury million. conducted City, International our of approximately jury concluded in damages you favor where with week. of located, litigation in has are are reseller Hetronics Hetronics headquarters former ordered The As a in our of unit trial many and

the we excited verdict a development Obviously, are that great about. jury is

how amount or substantial, isn't the we will of the any whether While amounts by take long and a part adjustments final final, verdict don't be as the of there entered. judgment final the will for is judgment jury awarded be judgment know to the the it

after appeal to the Once work begin final can defendants the final judgment, and efforts. collection is entered. we implement we have addition, In with judgment will counsel verdict

Company be States. particularly no in the located the able to caution, that of guarantee are there So, light fact win, collect that will outside defendants United all the I is the of or

macro generation, remain the continue situation. solid aided deleverage, our Grakon and significant Methode since on, on sensor to I debt quarter our said, program headwinds conclude, of performance environment by excellent million cautious global over and Moving given to largely growth coronavirus fiscal reducing launches performance, by that faced am organic cash by the based year, fueled acquisition. That third we and financial led new we $XXX mindful the this and pleased business, throughout and by to

At this will to call who provide Ron? I'll results. financial over Ron, turn point, our more the detail on

Ronald Tsoumas

morning, and Don, you, everyone. good Thank

'XX XXXX. was weeks year-to-date XX activity mentioned nine XX the fiscal to XXXX the the of both release, in in fiscal quarter months activity year-to-date of compared year-to-date third XX weeks results fiscal include fiscal third include third weeks and weeks as Grakon 'XX activity 'XX As to And year in figures. opposed XX-Q third year-to-date press months of X.X quarter results quarter fiscal opposed XX as Also, quarter 'XX in results the include to quarter year as of results. fiscal third

Please turn to Slide XX.

$XX XX.X% benefited higher to million $XXX.X third increased 'XX in Sales quarter sales Third quarter sales million fiscal $XXX.X the in the in from segment. million from in 'XX. Automotive or fiscal

both than Foreign $X.X prior and RMB were be rates by as a currency million. the the sales headwind net the euro to exchange reducing continued weaker exchange year, in quarter

or increased $X.XX income same $XX.X million period in to basis, from share or quarter million $X.XX last per a third On per million year. $XX.X share GAAP net the $XX.X

by from in Third higher lower offset expense quarter benefited expense. gross tax income GAAP profit, interest amortization net the income higher

in benefits actions fiscal initiatives last those costs which year. reduce from realized In the taken XXXX, addition, fiscal included lower fiscal to in for profitability and current improve year versus expense we

to on Slide XX. Moving margins

but gross GAAP adjusted in quarter non-GAAP 'XX. fiscal Third were margins were margins gross flat higher year-over-year

were reduce gross by and improve foreign sales. adjustments benefited margins the Non-GAAP to in applicable while and product gross exclude and periods. costs for GAAP expenses margins remote quarter increased Third impacted radio Automotive Sensor adjusted currency and negatively initiatives appliance profitability and sales, translation from accounting control purchase lower

GAAP by lower operational expense year-over-year as the points sales basis improvements, selling favorably benefit those expenses of percentage lower and acquisition Third stock-based operational and impacted compensation cost decreased quarter for a improvements, of XXX administrative expense. lower

Non-GAAP XXX as applicable expense third exclude quarter selling percentage expenses the cost and costs, operational basis year-over-year decreased points the and which fiscal related in sales, of in improvements a for 'XX. of acquisition-related administrative periods,

Gross impact lower currency on the at Slide margins non-GAAP year-to-date appliance XX. UAW XX margins labor by negative radio points to basis impacted strike year-over-year. and GAAP points, margins and control but by translation Year-to-date were product margins sales. the gross improved gross foreign of remote XX GM, declined basis Moving adjusted

and sensor applicable the offset These expenses and exclude the improve sales. Non-GAAP periods. purchase gross full-year partially adjusted reduce costs to initiatives Grakon margins a for of accounting items of and were in benefit by adjustments sales increased profitability

expense administrative selling points operational which those of compensation by improvements, a to GAAP sales basis expense of and stock-based a as a administrative attributable year-over-year, lower acquisition the Methode Year-to-date percentage lower whole. expense decreased selling XXX the positively of lower sales benefit improvements, impacted for and by expenses lower percentage and Grakon, is as as than operational costs,

expense and year-to-date selling of administrative excludes points costs, and slightly expenses adjustments, Non-GAAP on which compensation percentage as for stock-based improvements operational decreased sales, a by a XX basis basis. acquisition-related

costs the and EBITDA quarter in The to - Shifting $XX.X improve quarter $XX.X the attributable the to last current increase fiscal EBITDA million periods, primarily in million acquisition-related in same on fiscal reduce period. was Adjusting operational $XX.X in $XX.X costs first XX. during for 'XX gross Company the to XXXX profit to period adjusted period. third Slide higher initiatives year. million, for third the generated The expenses in applicable overall million and versus is compared profitability

X.X new EBITDA primarily the million XX. nine Slide adjusted fiscal $XXX.X and stock-based by $XXX.X in activity same overall in GM. in the improvement initiatives product profitability, impact acquisition-related on partially costs, The versus year of year. Company attributable expenses operational EBITDA improve year-to-date fiscal was compensation Adjusting current for to and $XXX.X for EBITDA UAW 'XX strike applicable last million accrual The the from costs versus generated reduce to months offset and launches, labor to compared 'XX period is periods, the in $XXX.X million, adjustments adverse higher million to at period. Grakon Moving the from months,

asset segment. intangible to due increased Interface expense amortization partially or A $XX.X few million in offset lower $X.X by the Grakon fiscal acquisition, Year-over-year 'XX the related XX.X%, to amortization to financial items other to expense amortization review. million, in

and expense In depreciation facility and North $XX approximately in fiscal Year-to-date expenditures, India. in $XX.X Europe mainly in we support 'XX programs was million. fiscal launches million capital 'XX, and America for invested our expansion to

adjustments Our due XX.X% year-to-date Reform tax of favorable issued rate that from regulations the Tax were from benefited in XXXX. December U.S. to IRS

discrete to Excluding be for would quarter. items this year-to-date impact, no in XX%. year rate have the approximately approximately our We assuming tax the been additional fiscal XX% tax the anticipate rate fourth

Free 'XX move Slide $XX.X flow fiscal million. Let's cash to XX. for was

year, acquisition down nearly million our Slide in We free we view shown the since down fiscal debt to by beginning pay the of our of with some approximately bank and paid ended Grakon, $XXX debt. since cash used flow for X.X. debt-to-EBITDA we've our of reduced and $XX XX, our As million quarter the on $XX in We the covenants, is gross ratio, at stands million. cash debt which

Slide performance anticipated to EBITDA to to key fiscal drivers our move XX Please 'XX. at look for our

tailwinds about and sales grant of EBITDA our 'XX the other EBITDA base the approximately back $XX to of the fiscal juncture, from the strike cost the this of and one-time fiscal million in estimate costs than the GM impact and full-year the At incurred we anticipated $XX by of $X EBITDA around acquisitions to and back $X loss Automotive at coronavirus. from adding 'XX and reduce of of and million; is impact about restructuring Looking improve incurred adding our EBITDA be million; in $XX quarter of we income car we passenger $XX program for 'XX adding increasing in subtracting launches from the million; for of of fiscal including 'XX, are UAW million; adding initiatives fiscal profitability about at and of government more believe and on cost one-time the we impact which subtracting new net million. $XXX million; approximately $XX EBITDA from fourth there in laundry Grakon, million; a which the reduced potential items, headwinds labor

In finish back X. Please turn guidance. conclusion, my I'll up with remarks to Slide

regarding have fiscal Form in our factors and release, for morning's XX-K. a variety reminder, expectations 'XX 'XX and the detailed a a As which guidance been fiscal ranges uncertainties, based are involve of of risks management's number upon XX-Q this Form and

in morning, of $X.XX sales $XXX.X $X.XX billion; share $XXX.X of to million announced reaffirm million per to in pre-tax $X.XX in fiscal the we this range we the per share range 'XX income As billion $X.X the guidance of earnings and per share. range to

be $XX 'XX, million. fiscal to investment amortization capital $XX $XX be we million For million are to between depreciation range and the million and in estimating $XX to and

Finally, $XXX we amortization fiscal free be net million and and as 'XX $XXX million. capital expect flow, income defined to plus as between less cash depreciation expenditures,

my concludes that Don, comments.

Donald Duda

ready very Thank we for much. Tom, you are questions.

Operator

first with take We'll [Operator our Leiker Instructions] question from David Baird.

Erin Welcenbach

Erin on David. for is Welcenbach This

seen. are basically, you to fluctuations thinking So hit large my to the look through about that over us kind But given the going just realize what first question of platform that's there changeover. your timeframe. can of kind relates change XXXX cadence more flow one the to fiscal walk of of might terms help just that I key customers in the likely wondering likely some in like quarterly of be if is

Donald Duda

because we we'd plan. customer's generally rollout the on comment be their Erin, don't divulging

than you'll see the in any quarter. holiday we're other choppiness, the So about but quarterly forecasting normal it I that, lot a can't say not trend

unusual forecasting spikes. dips so, we're or not And any

Erin Welcenbach

excited about, comments you those business helpful. have development build being to start your just being of business. that categories that able That's on what to you any able then some And that kind maybe products in about traction evidence of being I what can about concrete Okay. just replace in pipeline? wins to of point on you're product new talk guess, specific bullish stack center to can on

Donald Duda

in those That done sensors of so those areas gives said LEDs annual being and lot that Years made not I I is this cycles yet. wheel auto As and life talked our some far there in switches. strategy modified and remarks, to pay about, we we business prepared by and great ago has electrification. money $XXX begun off. products. a booked the in year million are definite And of we're to me And there comfort switches on new

it price consoles that over got is moving sensitive, consoles overheads. very center and that, put to now moving And to as switches the wheel we're way, to center

programs we're now. think that to up eight I on

which double has had this a to quarter. effect sensors, develop, a on time Our taken long but

load or tolling be a our X is truck calling development driver trailer. whether light sensor under magnetoelastic assist Class what's or then the in it we're And a or tow to truck

I feel to that apply solutions. technologies is it and on customer best Methode done - and to provider So has what does

Erin Welcenbach

is just is may to launch a pushed that, respect have Okay. final timing That's on full-year in helpful. going? the your And to laundry question communicated you guidance then that you previously with your expect bit my that little commentary Interface at that segment. like launch Can It the of about sounds is how but obviously the standpoint, been talk program volume.

perspective any just additional So there?

Donald Duda

I can anticipated. it but say slower we on get think it's than launching we launch we slower-than-planned than launch - expect a that slower will Again, all or we that track.

I been on again, think, launches. our But slower. to don't I really comment customers it's want again

Operator

We'll with take Horn Van Chris our next question Ramsey. Friedman, from Billings,

Chris Van Horn

on first So, coronavirus.

update to they're those put customers supply Just your your material you any have And your chain then if in into Asia? over impacts of or any guidance?

Donald Duda

expect seen we've is that the corrective down effect quarter We've built in. Any by and that we've actions to other in see been shipments, have offset months but two and had taken. now some to we're air

quarter in the So, good we feel pretty shape. for we're

the XX% now. XX% at think Grakon to workforce, in attendance Shanghai facility at we're And monitor, of then down up And things XX%. that Dongguan in Some to our one that I in the we point. was

that a sign. view good we as So

on the water. We several had Grakon weeks of material

that into in the time but in can or then of there that pipeline maybe to - Europe. U.S. supply, is You weeks the still view six get

travel. ban like so travel, bit mask that a taken blows and and and we've have We've the severely all cushion we China in have So there. of domestic on. limited taken Obviously, wipes companies little actions normal

every with cell-to-cell four from we've the and isolated screen. - And we the a work monitoring are hours temperature of

So the if to our and point quarter going to we'll not we've talk necessary I've and interruption. it's done to that supply a considerably perhaps in time. had at gets worse, in chain, caution and first lot at that, effect the about we've some curtail this probably effect got if year-end minimal but that have

Chris Van Horn

market TAM how ATV what's this I system Thank And this - Is power to steering sensor a for orders win? system? Thanks. on new potentially and then, this torque Okay. that are was color. - technology you specifically you award. the is to like want Was competitive just this where power a successful? on this for - that this - - touch if

Donald Duda

one TAM niche, what altering look been The a really very is motorcycle. would for had is that. call what probably need hard sort at a I those but is it we're market application. have inception. its since I because before the Spyder of it calling and you specific the to I'll it stop - on vehicles, We've

So, used basically, for the same technology vehicle. another being

application-specific. that, Competitive we've electric again, And transmissions. I the isn't market, But that's being and wise, is the as Magnetoelastic years probably probably been but seen years technology competition. in just don't platform performance say development, there. think is bikes. there have e-bikes, about then of it something same And shouldn't but terms it and years nothing again, the in is that we magnetoelastic. and Spyder. years a don't I talked used that the We've for that's still the any of the well total - - as

Chris Van Horn

electric for for customers working around other sense vehicle the And it. auto your see are that evolving in then getting and have there some themes, you're in you that a significant that how of list. you? electrification obviously, do is, And and on customer market? I'm one products Got think I adjacencies Okay. is market you just And

Donald Duda

everyone electronics, of to It's would of the little And There's on went and but is think. we a display probably lot start-ups. consumer there talk a lot the than a electrification. evolving, slower

with for most manufacturer let's the the all or way. that but talked that are but require is major all something busbar of about platforms. I the going it's is EV that that So us. us, well a - it transform the major contact busbar, growing the use product, to want us bank And people their overnight, not battery positioned area we to put will don't We've name,

possible, you the technology beyond to our consumption you as are we at look doing of the we because supplying a modules, so we capabilities. from forward, as our lighting and are a help lighting, them Going of - into we battery extension in on low want busbars, keep can that distribution in as we're business the the are the and if understand again, EV energy. power lensing number say, us in logical helps technology for save standpoint, working it LED the an customers those and LEDs the busbar, And things reducing secure EV, of

Chris Van Horn

Okay.

new It for you it like have the timing. on sounds category. So and of products just adoption depends that EVs some do

Donald Duda

do to And new that not larger that you Right. outpace We The for I growing. want by, the become growth can products. don't as said, that, we say will it's us. more segment

Chris Van Horn

Yes.

synergies, Okay. good here. cited the that the some to tailwind that of you Is it a of Is controls related? that? What's of Is to Grakon driving volume the through able of products? And cost the margins push because acquisition? kind the were you've mix it as

Donald Duda

sorts first have acquiring one to it. and give its we're higher Probably very by of in they've factory. plant Dongguan, expenses the interested reasons But Methode team, manage than well, business taken out dollars which does auto. - the biggest of all what just what It's Grakon I our in of well, doing all, is the that credit, millions of the margin is of manages plant again, - Shanghai a -

through work our yet, technology help long-term. and development product that's to can't well all normal but the bringing and anything So while And margins. to into has the will we improving that we'll Methode customers received the protocols, cycles large then have the been Grakon us point

margin is because probably the new short-lived but reduction by to will - improvements. our relatively be offset usage products have decline that Class anticipate we seen that be we of going our and that X Now, and really any a -

Chris Van Horn

the might Last on of nice Great. sense be paid get hear Okay. you when trial Any and get resolution me. timing electronic the to for to a damages? the It's how coming those that of from close. you one paid

Donald Duda

to now. lawsuit and - expensive, was we've don't there. business, impossible implement to it I filling which the while But, obviously, yet. preserve pursue we're I'm It's the tell was almost to necessary not that. deposit going is That right it was out slip to we'll our and very best probably on work timing. timing, difficult. answer That's speculate now But the verdict done what the collect I want to really can monies. the that's the

Operator

And with next Ryan question we'll our take from Sigdahl Craig-Hallum.

Ryan Sigdahl

Congrats environment. on the challenging being the maintain and able quarter really in to guidance strong this

Donald Duda

Thank you.

Ryan Sigdahl

just it Maybe impacts. production coronavirus I guidance, you global by day, mean, to start on the almost like been plus have have the weakening seems forecasts auto

it So, material when I you last guidance. versus quarter the guess, like negatives several gave seems

the you I couple the the explain offset last the of please to guess, positive are and - months surprise, can negatives what what are? So over those

Donald Duda

in but in we've would months would the I new the We're and to we the and As forecasted. Ron, out X seen which Class start our fourth exceeded cost majority decline we've think all which And of it… launches, as as are down I Grakon maybe our volumes with of those success. third yes, I pointed great think is six was had as I some factory, very talking year, ramp good Chris, taking that. to, say, ago. expectations, about not quarters auto,

Ronald Tsoumas

expansion margins the maintained the X%, margin had year-to-date auto. to almost to up auto well Yes. in margins challenges are - compared things in last I - well have consolidated spite year are as of a of couple

have Group Industrial up gone quite Our a bit. margins

a together we thought we is, than our that, tax EPS So, our we might when all it and all - out of things then couple came obviously, of with the June. other - a things lower is and been rate those last little have the

significantly things tariffs of done pretty sales, of you all We've a that has adding mitigating sensor a those job at higher of product IP. know-how, together, lot increased of increased start lot margin, and nice year-over-year

a is Company a very and cumulative a make in So those you that favorable together things the they add to impact difficult all operating environment.

Donald Duda

is would also Europe, new I emission add have in negative And one they requirements that the them. as probably

So helpful. that's been

Ryan Sigdahl

over, think still appreciate the I elaborate mean, of kind I business process now it's truck and ramping the guys center and SUV the can in Then on, I Great. product? a stack why of you color. you platform. switching you're will guess, GM's legacy next-gen decline

least as there there like award, well would on others. as your seems years of at it five-plus primary be life, So platform

Donald Duda

couple very We've buttons. of to number go, the you been do have a maybe not the bought almost the cluster a even passenger, always we where what at and question new in if Consumer few is, years, glass I report much is back. the look really we've But investors the and the people will asked just Show I but of we instrument displays they the buttons. Electronics AMGs, runs that to went over get trend wanted consoles what Again, on and by was the to - think has center record so

a stuff of that more So trend. is

down. we as do intend into take then into discrete more you the or And the the and center And say, integrated we nor But is market. so. going radio, will we functions, display a price more do we're that's to still And to make The out getting I'd display. get don't I wanted if selling it's in and launching the - seeing. there's trend average something that's you're know, we're right.

Ryan Sigdahl

a That's good… maybe

Donald Duda

price a happening average No. over tomorrow. and and the make money is selling that's change there are integrate, we going manufacturers down a is next our mega the there? there years. the like out We Because when display. Again, taking over nothing LG five screen really Is award the

Ryan Sigdahl

that's and product on to higher And growth Or winning and focus that is those mentioned with continue realize resources shift on Yes. to keeping margin, now that's maybe a some customers? other existing those focus earlier? of I higher bid good mean, I resources of you future will you years better away. kind segue. generations it and five-plus categories

Donald Duda

- I'll going sides you Well, that. to okay, of We both give certainly are bid.

putting We instances in rules to electrification sensors, got because, I resources the multifunction resources. along. when below you all that better the out that, we'll it earlier, and We're bow out, and said, certain taking have falls we've our mentioned in we've and off as or of done margin those switches.

and So make make margins to them too saying we're probably they price now, certainly displays, terms the we out like Well, the getting commodity getting the put items of I'm it. if in in of it's that that did it bid we I'm those saying just got legacy going on just want. sensitive. like But don't again, not we're categories. we I

Ryan Sigdahl

But I have on TouchSensor could last way - switches technology. that this, could from and And technology? like Is integrate there. benefit mean, question then leverage away it. your going and is mean, a I'll and that any knobs and you it you to screens I there leave maybe seems there -

And guess, you how out of kind you do seem display quarter, new And improved stack about technologies? last which digital center future then and kind a product. think those cluster of is opportunity like I and two a called secondly, there? there

Donald Duda

answer one there. Very first. me that opportunity Let definitely there's

and Now, we customer. instances, of our when can to are that bring happen. integrator OEM the customer manufacturers, wants themselves the up the some can against make go in but directly an But together we and seen money screen we've technology manufacturer we the certain screen for certainly

for question, first discrete is the TouchSensor the Because And TouchSensor. application. No.

So one button. function one

built not a aces So well, into really it's That's into those built to and apply now the screen is chips, the that most part, chips. - displays will that the be for for it vehicle. not the in chip. doesn't Actually, applicable technology

Operator

questions. closing the And Duda, I'd no there further to over at call like to comments. you Mr. time, any turn for this are

Donald Duda

Thank for you, thank good have Tom. now. a day. listening, Goodbye and Well, everybody

Operator

does your this conclude We today's appreciate Ladies participation. and gentlemen, teleconference.

disconnect have a great time, may lines You this day. at your and

Methode Electronics (MEI) 5 Mar 202020 Q3 Earnings call transcript