BELFA - Earnings call 3 2021

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Operator

Good day, and welcome to the Bel Fuse Inc.

Third Quarter 2021 Results Conference Call. Today's conference is being recorded. And at this time, I'd like to turn the conference over to Dan Bernstein, President and Chief Executive Officer.

Please go ahead, sir.

Daniel Bernstein

Catherine. you, Thank

the and on is Tuweiq, Farouq Joining Hutkin, call our CFO; Lynn Reporting. Director our me today of Financial

begin like I'd over statement. the Lynn we go harbor the to to safe Before ask call,

Lynn?

Lynn Hutkin

you, Thank Good morning, Dan. everybody.

growth sales, the concerning as we statement. results the of safe of Litigation concerning statements risks and are with on forward-looking call, our impact regarding Except the strategic expectations, Before internal our on plans our allocation discussed and situation, contained harbor the and the community under information Private expectations and our Securities following focuses, intentions matters the capital of acquisitions, strategic to and that respect our uncertainties. logistics to plans, historical operating this Act of I'd quarter expectations anticipated like business ongoing investment, this and our shortages start, long-term estimated worldwide for diversification read environmental strategy, statements for on to call effects impact backlog beyond such margins, involve and impacts initiatives described XXXX improve fourth Reform as material and and

tariff and effects development, differ rates acquired projections. business such proceedings; governmental, associated factors could fluctuations materially and viability rates; associated recently and SEC social of time the commercialization and responses from new the of those company's supply health risk Among conditions; in actual and acceptance product and from with foreign U.S. changes as of products; results legal rely that concerns of to technological or differ our competitive the crises, reports. or of materially are: regulatory risks trade effects in exchange products COVID-XX; difficulties; detailed with time impact capacity on market's the public the the difficulties from new with products; trade interest to results customers; the uncertainties companies; of to impact economic policies; and the integrating and the economic currency company's associated statements the continuing to the Actual cause environment; factors such market could our Bel's facing sectors that constraints the difficulties;

risks In any no will, be and correct. be forward-looking statements. assurance fact, the undertake to revise there that prove of in forward-looking update any uncertainties, can We statement no obligation light or to

We this during been also call, have reconciliations non-GAAP results may results release. our our to non-GAAP in of and GAAP results discuss included

update. to call to I business turn would general now the back like for a Dan

Daniel Bernstein

joining and call you, for Thank you, Lynn, today. our everybody, thank

thank efforts quarter, discussing I associates kept like and running Before in it Bel, their would dedication have is to the for quarter. sites manufacturing their up and our our ongoing the third all global manufacturing to

growth meaningful sales with the end. Turning quarter to record achieved and quarterly third backlog in The our our a our growth is year-over-year both oldest demand and in We new all major new orders our history. Group, bookings at quarter Protection division. protection, across had the quarter increasing note, to CUI, our highs in best products results. way Interesting Power Circuit from our product end The is which substantial of had e-mobility circuit markets. line, the and

more all-time will an September Farouq high, $XXX details million XX. totaling at is backlog at offer Our shortly.

days. respective family pleased contributing our fully and now acquisitions million and combined are to $XX.X net of into our in sales results, were EOS our integrated We since acquisition announce are accretive to $X.X and earnings RMS a immediately of that million both Bel the

X. blackouts $X are into China logistics global going million QX sales of sales out in our concluded of combining availability expected cost On do offset inception also parts incurred the labor, million see in in a increases achieved with and XXXX. have will X-year systems cost monitoring. -- we annual costs forward. electrical is conversion Rolling Bel price ERP logistics quarter cost material and into and recent approximately increases side, savings million. at this expected pushed our The $XX has something these a project, the closely milestone $X X us big we we as Since marked The of for product, QX

on CEO We're the excited us to and operations. several we'll new analytics and fourth simplify streamline data continue about in and quarter, our the the the to we helping of In provide manage Directors. review business we system organization, profitability capital will that to better working fronts Brito development. company HR Yesterday, as new and our is on planning Asset improve currently of Partners, announced Jackie a human leadership the Jackie of our a focused to Board margins. addition culture,

the career a where School she workplace. Management. long Director addition, is diversity Her has Assistant of Rollins Admissions, at Graduate and in Career and College’s of as she recruitment, selection, Development, Admissions, Dean Crummer held retention management, In focus positions General of of Professor on Business,

Bel's We the the ESG, a as we and like would now [indiscernible]. I Farouq variety retention financial of which we the of coming communities Jackie engagement in strategy, our which associate investing as over a growth to run updates. Board are our on have and plans, to member refreshing to projects to quarters, pleased through the turn call embark include in

Farouq Tuweiq

morning, Thank everybody. Good you, Dan.

from $XX.X follows: third up for were by of Solutions million, Sales is third year's Protection the segment sales XXXX Power quarter quarter. as XX% last that were and product

e-mobility growth to followed infuses. Our products a that end of contribute led by with group COI market XXX%, the the

modules we negative previously, custom to business a of our discussed this that As contributor was quarter exit sales. weaker continue

up backlog, quarter XXX% from with Solutions year-end. the robust which Power almost Our and Protection finished or group is $XXX million third their

our X% or were Sales million, which XX% also The decrease. next-generation rebound grew continued a market, XX% a demand since last that with sales from is sales backlog the distribution year's Magnetic aerospace integrated XX% last commercial million million, led defense year's quarter. of in for strong, our XX% up year-end. year's quarter, were third that of end $XX.X from connector increase $XX.X resulting Solutions year's were quarter. the or quarter, in from orders reflecting by used channels modules an increase third $XX switching improved $X.X in are past connectivity Solutions from by last third last applications. Connectivity products million third for this quarter, XX% The were challenged higher by

backlog of orders for by Our since our grew million or magnetic XXX% products year-end. $XX

third in unfavorable during quarter of XX.X% the foreign the compared third quarter. margins XX.X% a fluctuations gross margin from down also XXXX, profit profit XX.X% The XXXX in higher basis, in XXXX year's from in decreased labor Solutions of and of of not XXXX Connectivity On third Solutions XXXX. affected by exchange is in XXXX up the where Industry-wide year's from quarter quarter subsidies XX.X% quarter. gross that $XXX,XXX outpaced costs was the down pricing, the by the earlier with received material XX.X% repeat. of Preliminary COVID Protection product third XX.X%, Power quarter third for quarter in in third quarter. XX.X% as segment the consolidated pricing in raw and the that margin year's related had last were in comparisons last last gross Magnetic gross benefits Solutions increases to gross increases on a were was the year. The XX.X%, quarter from margin margin margin did third

unfavorable the third the a of of of million quarter third On increase up $XXX,XXX SG&A related and to of quarter fees from reduction and a XXXX, from of dollar sales. quarter The third perspective an the salaries and quarter last the professional majority largely compared increase of R&D XXXX as third to from the higher expenses percentage of year, XX.X% $XXX,XXX. fringe $X.X of of front, benefits but during as million represents due were costs XXXX, sales, to legal million $XXX,XXX or the effects. were $X.X $XX.X a

to These from the quarter started also an the the We of in operations of expenses to as third in million uptick million income compared third travel compared factors quarter $X.X XXXX. XXXX XXXX. resulted see quarter in of of third $X.X to in

statutes with XXXX resulted quarter interest $X.XX during by decreases quarter. had in a of In This driven expense the XXXX, in EBITDA both costs offset the third we debt last federal quarter partially related associated expense income of of spread is quarter XXXX third XXXX our in tax benefit in LIBOR, primarily up to and changes facility the taxes for of and million credit on credit third with interest expiration was the the million year. GILTI of the prior our of the amortized from of was from law third provision This tax its connection the year's compared during agreement quarter side, in On balances We in million million $X.X The to in overall certain remaining benefit last third same quarter. third there $XXX,XXX last reduction a versus credit outstanding reserves. of to the $X.X limitations of third quarter. quarter improvements agreement. $X.X charged our refinancing year's year's on this in resulted the financing deferred company's that

a third other were earnings in unusual with share share compared in for of in shares third as EPS XXXX. $X.XX $X.XX in quarter share non-GAAP the third XXXX Earnings per XXXX was items, certain shares and with third third quarter third EPS as basis, Class quarter per $X.XX in earnings share $X.XX was $X.XX nonrecurring per per B as excludes the earnings which earnings in share third the Earnings per the the of quarter share share quarter third earnings shares per as for quarter On $X.XX Class XXXX. XXXX. the share per non-GAAP a per quarter of A the for XXXX of compared XXXX Class of share with with earnings compared A were XXXX. of of On basis, in of per the B of per $X.XX compared share of Class of of quarter for of $X.XX of in

over Shifting sheet some to balance items.

Our balance decrease $XX equivalents September cash XX, and a $XX from was December XXXX. XXXX, XX, million at of million, cash

the EOS, various the $XX.X for months outstanding balance and properties. $X.X $X.X million net These the connection by sale items million. debt of cash During used of RMS we of payments X million in with towards of from made interest first payments additions received our and of proceeds partially acquisition net $X.X were of of $X.X XXXX, payments $X.X million in million payments capital of dividend offset million, and

XXXX RMS million $X for XX. contributed to XXXX. The of increase to the September compared as driver as the receivables to quarter $XX.X were at to XX, $XX XX, as million September third volume receivable compared primary related higher the Accounts of December sales XXXX. and of XXXX, year-end, quarter our acquisitions EOS in increase to at accounting The from also of in the XXXX fourth of AR million the balance

September at in Days at work outstanding purchases and inclusion improvement increase the December materials orders from from XXXX. Inventories December to XX, progress September XX, up acquired million was was of XXXX. as were sales raw to backlog XX million The XXXX was -- XX was material as at days seen in days higher XXXX, XX, XX, $XX XXXX, million an accommodate companies. our $X.X raw from largely and well of increased $XXX.X due

XX, was $XX.X the million at increase year. materials in of That Accounts September of during its AP The line million in first raw level volume from the the payable with XX, at $XX.X heightened December purchasing months up were XXXX. is X XXXX.

XX, $XXX.X total acquired XXXX, team. of had outstanding In spreads and principal rates on We Bel's for decrease $X.X a September previously $X.X in as that addition, companies was that of all million refi lower closed this accounted overall million announced XXXX. the September fixed while was XX, of a results level. million from since increase debt eliminating interest December balance XXXX year-end X,

the Dan? over with I'll And Dan. turn call that, to back

Daniel Bernstein

line time, might Catherine, up like people have. phone Thank you, open Farouq. we'd to at questions the this for

Operator

Instructions] We'll Litchfield from first Theodore the take O'Neill question Hills now at Research. [Operator

Theodore O'Neill

quarter. Congratulations on the good

Did pushed to heard got So out are I'm sure QX of into not going go get -- sales I going of to right. are that say million you QX? that this that there's $XX

Daniel Bernstein

it Basically, because they orders logistics. stated. time. the finally, we push material back And what components the outage, also -- at have customers some all same we in was what That's didn't Yes. then

Theodore O'Neill

to due Do you closed have any significant recently customers that have COVID?

Daniel Bernstein

throughout the world. None

Theodore O'Neill

Okay.

million your the out this historically, quarter from year? been push it $XX has seasonal make quarter down to revenue. this Now sequentially fourth of not Is enough third

Daniel Bernstein

to going question. that Farouq I'm let answer

Farouq Tuweiq

Yes.

to of to QX, more the and on. say ordering I obviously, it obviously our outside levels historically certainly to would So workday's Really some the sales kind been have just has for of things get be similar lower QX the of QX. that patterns materials holidays available, are assuming orders control. versus and so We of you

weaker. historically, it to little So bit I gets sum a think up,

the out we have get actually much we can raw just on depends how materials. orders. get We It assuming

Operator

& the question Jim now We'll Company. next take from Needham from Ricchiuti

James Ricchiuti

questions. of Couple

price a modest price You comments increase of you wanted the back some made, alluded quarter where the to to last just said that think, increases. I And go amount realized. I was of the you to

said remainder QX think but QX. I you you and XX%, the around would realized be thought

So you bulk thought? of I'm Are way out the QX seeing between split you just curious, how QX? the kind playing is the still increases of and that

Daniel Bernstein

of that customers. the but have this think of say, fall next should into and contracts would customers pricing do maybe by of I goal that year, do yearly yes, those with all to have our end XX% that implemented we us year, be some XX% excluding XX% it's the of I

Farouq Tuweiq

recall up a Maybe it while change build we evolve world to the just price the year, things cost. earlier through the about when you'll it has takes to to you for continued put think system. all And said, and obviously, increases this Dan what work on as

So a any close needed. see action on keep is eye but to definitely further on we'll we're a is something monitoring case-by-case definitely this basis, if it

Daniel Bernstein

on quarterly Farouq at we looking are our year. a on said, not not months, what X every Just pricing every basis,

make trying that difference are it we up on of to price really facing. difference we the to if So being are top stay the increases the

James Ricchiuti

of you from And any manufacturing Got dependent be and dealing any for kind own your your supply Are your you're components. how issues, suppliers I'm chain you're might deliveries? suppliers decommits experiencing of that obviously it. various wondering exacerbating on with

Daniel Bernstein

Absolutely, yes. supply. could And different it be

manufacturers. know, IC You

have book. We've there's and in buy to deliveries, hanky-panky think I us. going orders our a our orders some on lot we might of even come of committed from for the though don't try suppliers, in

face we battle day. constant a it's So every

it definitely But we constantly. leverage say our relationships try And pretty that's suppliers, we definitely, it. and the our good done see it we so based see I a -- to we've we far, job would definitely managing address and weekly decommits with have on but

James Ricchiuti

next. to this Is there QX? worse called where situation supply kind not gets I'm rolling a to impact $XX QX, a it the million, any that about these sure have this. impact have -- could potential you you in that from of just environment? chain, get how Does this of you for the kind It replayed of like think X quarter the that magnitude in out sounds

Daniel Bernstein

long tend had a a customers would type can't and decommits that the think just this the right to but in, of I I of like you These would foes $XX quarter, don't you labor of we we again, pretty situation their find things maybe some like track could $XX and to logistics so can It using aggressive so labor that think out marketplace grow been with again, rapidly, we just made orders. most in seen probably mostly we history the we who give then have visibility to China. past. this and needs million barometer as million because a a But are us have face. that never why the that's it's -- have record we another in I strong though, throw have before, but we substantial and make laying the in type think initially commitments we'd for of And change next long, time. pushouts. it's

James Ricchiuti

seeing in I'm guess question, where in back commercial called off a some Last recovery -- meaningful that has I'm aerospace. wondering, quarters we Yes. how I'll fallen. revenues and And there jump might market couple that queue. anticipating year that is I about more jump of wondering now it's a low Are you commercial? the is out business But be in a recovery in just I'll just think you could But that how given decent XXXX. what base you're next for

Daniel Bernstein

Farouq?

Farouq Tuweiq

Yes.

the we're quite strong the bookings Obviously, I is are ramp-up we XXX%. frankly, up say, on think is And up. would commercial build but for our pretty around perspective, And ramp we also think of now. a as there steep business north roughly our the that think rates are in -- broader right would that Aerospace, going we're scale a market. to challenges, I I -- So the about there it is on going a pretty I bullish think from way

So and very it's ride we're bullish a steep -- I but on think that.

James Ricchiuti

the that think Is so should correct? levels end normal we of by -- to back I I understand XXXX. that get

Farouq Tuweiq

guidance best on so far, correct. we've That is our been

James Ricchiuti

not of just And there way a fairly be changed sounds bit. is be it has amount. it meaningful is a the like could terms a business about normal I'm could -- sure think to it what revenue in little --

Daniel Bernstein

I think, pre-COVID.

Lynn Hutkin

I can So answer that one.

this the $X commercial just business, dip we've aerospace per distribution, down direct, year. go million it, what per our past $X mark the pre-COVID, So within this million And not through of, quarter call may that ballpark this is over around to and is quarter. seen

there quite for So a on the side bit there. rebound a revenue is

James Ricchiuti

on Congratulations the quarter.

Operator

from next We'll Funds. take now question the Susanto from Hendi Gabelli

Hendi Susanto

Dan, wondering Bel products? Fuse is their that from benefiting Bel customers scrambling Fuse characterize to like parts, whether I'm can including like we it get

Daniel Bernstein

No.

think everything. I products I think is paper to for again, toilet scrambling from everybody

some with growth they of market, So the type today, visibility we are adding people EV lot the for. from think and playing a plus What anybody that are or substantial us properly, are working creating that's really demand. do to strong makes I home new markets of people exciting -- larger needed anything with post-COVID supplying communication world and the generating

Hendi Susanto

on color release, press -- then strategic will growth its on Fuse is plans. like repress And that operating Bel statement. repress more a there Any and

Daniel Bernstein

No.

I to of we has been move taking think young a the lot Farouq, a And forward. somewhat I CFO, aboard of energy. yes, we've I ideas think a stand very the on company. been think good again a and want coming Board company aggressive how And family-run the XX-year-old with lot with --

for Board and reenergize the looking to a improve how and hard is him look it. we should take of think I see Bel the at every company part

time very happen. So I think, major to move make a Bel again, going is exciting for catalyst be a Farouq how I it's to that think of and we forward

Hendi Susanto

do in And of later inventory that you toward supply is path then, in than chain how lower part Dan, the the XXXX? assume normal. I also channel normalizing the envision

can while, be but you a it guidepost share insight of take we So watching? into kind I'm that should wondering whether will what some

Daniel Bernstein

the never to we -- is always now all I guidepost predicting from quarter. normalized. they're we end we somewhat visibility. that seeing everybody any the generally, the think to back second down saying of XX weeks, they're say by we from industry, weeks XX all this But have supply more in get They're the will talked the

don't that go down if I were down to or the weeks be I weeks confident XX the everybody end the next of time but know Now XX year. think it lead is quarter second by dropping should weeks, XX of

Farouq Tuweiq

example. And little is a reason them. a transformation, nuanced things maybe And up going as I various That's the being And Hendi, see for being just question. that, in EV we bit right? obviously fundamental are through some think of one well. a to of markets old build So of electrification, and end

see maybe loosening little up So well. to like will some Dan's ramp be more the bit commercial that of air kind And about a up. we we of as talked just commentary, -- there'll some

us embedded I and well for that day position when should diversity think we comes. have So that that mix

Hendi Susanto

it. are the point Farouq, Bel we where share e-mobility? of to Got sell magnitude the can And at then

Farouq Tuweiq

is way think we something now, perspective. some put I just we're to our there we're -- clarity more it you we want we on. little put right indeed, And think it's a selling, to there. out out that point. It's hear me at just make just working reason want -- sure And about number through clean way to we're But the that. trying a Let tracking but that a have from the and

more. of to you to get a So know of we little back Dan, top the unless us get think I head, on let you that, your if need

Daniel Bernstein

definitely Farouq that's think a project. I

Lynn Hutkin

would I do sales on have that be? recurring e-mobility, Farouq, if

Farouq Tuweiq

Yes. we'll got ones, of on to of the you this things built but And is have will. that we kind may couple caution just Hendi, it, There's that a clear that we've more trade later. through if

Lynn Hutkin

Great.

$X.X third million, million in third the e-mobility in were $X.X 'XX, and last quarter So to that of sales compared year's quarter.

Hendi Susanto

you have from do organic contribution Farouq, that, EOS. or year-over-year million $XX.X sales like RMS growth, Lynn then sales including And and

Lynn Hutkin

growth. sales organic Year-over-year

that was in. So

Farouq Tuweiq

just right. You that out drop RMS EOS, would be the and number,

Lynn Hutkin

right. That's

Farouq Tuweiq

$XX.X million.

Hendi Susanto

performance Okay. best in I see. the for QX. QX. That's it. And then great All a

Operator

the Capital. We'll at Mike next SGF from now take question Hughes

Michael Hughes

First, the I wanted follow pricing on discussion. up to

Your XXX year-over-year the were reported by pressured in points just margins basis quarter. gross

side you do out So cost the same recover 'XX? Or than degradation where assuming it is margin that is the it XQ by today, stays from that that? right further

Daniel Bernstein

Farouq?

Farouq Tuweiq

Yes.

a So it's good question.

of last year kind in the customers the COVID backlog, kind XX-day -- QX on kind showed some As QX, a out aside we've is at any XX, off similar effectively some working has noise of all them nature we're barring just Dan FX, things this As that are annual in here from that path to just are QX and backlog burning and notifications, fluctuation should for talked in. subsidies priced kind the that we are of of But some that we alluded understanding to, of for it putting some we significant with to contracts. the QX business year. that some be Obviously, had look of

forward. we think when about little it will pricing, So be more a

of the So start we'll quarter. the of to something see first reactions see and that that given some I we'll -- think taking, into we're actions some trickle

Daniel Bernstein

And have decisions going everything to we margins and how throughout and of reevaluate we and go improve to the focus goal look I we whole a at commitment to everybody area organization to what margins major the Farouq the just forth cost our our see came every do it's can where sell do is back organization in the So up, it get really to to since our aboard, forward. improve #X to.

Michael Hughes

or FIFO LIFO accounting. you on are And Okay.

Lynn Hutkin

our accounted. So for inventories utilize costs we standard

Michael Hughes

is margin goal? And you there? put long-term then operating Have out what X Okay. your

Farouq Tuweiq

given guidance of we to on want guidance that overall don't today. but we We are we have provide don't just we here, know what -- forward be north

Michael Hughes

Okay.

then you And comment electrical but a about Okay. your to made unique this in comment, you China. I isn't and tracking, know rolling, made company, a blackouts

or can suppliers' quarter the it? So and when production if to in speak your productions just third and impact if your you to seeing the that still impacted started occur you're

Daniel Bernstein

It suppliers hasn't ourselves. all us manage some do our We generators, what -- been generators, as over the impacted you but use we and have of can is it government have by able time. to do

down So will work the Saturday, workers Tuesday, Sunday. we shut Monday,

So we've a It's that's what's want our going been far, our spreading the blackouts. smog do flexible. people exploration. pre-Olympics want summer it on been suppliers generally, adjust how to lot ask in have they just this run or on policy change the with concern a and in their issue when to seen China, investors And they of they to

it but in we've line really affected seen, bottom something line our top at time, or point this it's growth. hasn't So

Michael Hughes

Okay.

R&D SG&A can ramp or in and question. we And that and the just take into big Is a last Okay. barring then revenues? not? just quarter future and costs, extrapolate third that fair the

Farouq Tuweiq

is. it fair. Yes, That's

step with think be to little more average, everything environment and just more I just should costing everything is think here we're inflationary more, go. seemingly a question is a is I but on on it

Operator

the question a Schuler, Private [Operator Instructions] now Investor. We'll from take Edward next

Unknown Attendee

in now? our are at company is of capacity, utilization the percentage you for A address could utilization couple capacity plants, of what your questions. what and Dan, total you your

Daniel Bernstein

can them laws our get of are most of the time running factories labor majority factory that the of the tilt. within country. we to think scheduling do all limits are out the as I of as much of full And the

at we XX%. many think running factories are So I don't years, that have XX

running think now. hard I pretty we're So

We group, are X -- manufacturing lot product of we product for group. looking do a magnetic our

generally and We of in we added new are our to investment. space. at consolidate facility some looking there China use over operations But capital give means this us to time build a point,

Unknown Attendee

increases, you If the January, Like Minnesota? facility. into in you the business moved that your have your would RMS increase Minnesota transaction in to equipment space where

Daniel Bernstein

I No. we mostly had space, to additional Yes, XX,XXX we we think, and added, to -- have -- building. feet square X,XXX our had

months leases like up X came Our ago.

highly processes be So we expensive. tend to have but automated production very you are a equipment, stamping which molding get a lot space, that and of where

get shifts. So a acquired output, -- operations days X for And that, doing run to we it's company it. those that's were high a how have XX-hour you to week, the

to were than lot again, we and So minimum of it space. added in just a able

Unknown Attendee

question. Another Go ahead.

Daniel Bernstein

when bought we they rate XX% about So company, they a current peak. the what at of the were in of did run

So X the next again, ramp-up lot that equipment over X up of we have of there utilization as comes or years. a

Unknown Attendee

business, any the what Magnetics your minerals? In need do earth your for have Or rare you earth is minerals? concern about supply for rare

Daniel Bernstein

are been a magnetic ICs I is it's manner. our ferrites of Well, a forth. think do yet. and has lavage not mean copper the But generally, on overall, if it terms the I have use material problem do side, and standpoint #X have in other getting companies timely we the that problem think our plastics IC I and rare earth But water wire. said, a on large on we But from look we a and you way and those. so we don't really

Unknown Attendee

new R&D a year then on that follow-up for and Is million question million R&D. indicate Mike's on question Last products million. could that year thing? from has the coming a beyond? good $X.X the The are and to Is gone $X $X.X next

Daniel Bernstein

our to in I confident the spending there, a good where is think out if that's the the but the we're understand dollars we to get answer good question return, NPI -- question, are maybe yes. is

our business margins, it's of just focus I and realignment really with R&D focus to think on a we're looking more refocus as the where efforts. of

sit -- focused. more bit I we're we just needs little So have. what strategic be, I little but shifting be focus to today, our a with a think We think feeling to where we're add we who good

Unknown Attendee

the think sorry, clarify. couldn't -- maybe I I

I it the question had a FX. increase of after looks is from But a in came think is, R&D the think product. new the I lot you like substantial increase

Lynn Hutkin

That's right, Dan.

in China are since our last with higher and -- into especially translate the of USD. past the the strengthening just year, Renminbi lot engineers a R&D costs Euro local those QX the over year, in So same Europe and staff. and the much If

Daniel Bernstein

people. So it adding more wasn't

I you question were think the major asking.

Unknown Attendee

Similar I'll to the that, yes. That's go to fine. queue. back

Operator

question-and-answer That I'd back to call management. to today's turn like session. concludes now the the

Daniel Bernstein

want anybody time. Catherine, has any just more to more if questions confirm you one

Operator

no turn There Dan. Instructions] questions, back [Operator to call you. further like are to I'd the

Daniel Bernstein

your everybody, hope a of investing your Bel. time, Thank time in Catherine, you, have have for schedule We -- we you you all I to us nice thank speak you, today. and taking busy appreciate out to weekend. and appreciate

Operator

call. That for concludes participation. today's Thank your you

now disconnect. may You

Bel Fuse (BELFB) 29 Oct 212021 Q3 Earnings call transcript