BELFA - Earnings call transcript Q1 2024

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Operator

Good morning, and welcome to the Bel Fuse First Quarter 2024 Earnings Call. [Operator Instructions].

As a reminder, this conference is being recorded. I would now like to turn the call over to Jean Marie Young with Three Part Advisors. Please go ahead, Jean.

Jean Young

morning, good and you, everyone. Thank

not by considered company's Actual update outlook. future I'd Before as during should The company's on any our for any and the company's company expectations reflect of forward-looking be in the a company's statements remind closed the the as including and be These expected date. or statements these views to yesterday. that press to in results conference we factors. other today performance considered business for securities statements representative after projected the call, subsequent risks, the and to forward-looking such will of operating views to current begin, future today's of for relating risks that we everyone due statements disclaims under number like are will laws, material regarding XXXX. summarized market statements release periods only obligation forward-looking any that federal the periods, These future differ of financial guidance may periods statements based as from are materially issued make uncertainties we and those

from have results results of call time. may recent in GAAP September reconciliations to documents important the about the or Securities and press release. our file and that the information results that included report in filings year with to and other XXXX, from Form discussed our non-GAAP we annual our We most quarterly other SEC filed on the our non-GAAP material fiscal may performance and during our our risks results Exchange potentially reports discuss materially Additional including ended impact and have been differ could factors XX-K financial to actual with cause expectations also for this our XX, as and time Commission,

website. the available and our section filings are IR release of SEC our all press at Our

call Reporting today and turn the and on Financial Farouq that, me Tuweiq, Bernstein, Hutkin, to call Investor the President Dan? I'd to and Dan. CEO; With is Joining of Dan Lynn Relations. President over CFO; Vice like

Daniel Bernstein

Jean. with we results you quarter. joining financial XXXX for for and pleased Overall, were earnings quarter Good you, call. our Thank this our morning, thank first

sales $XXX which range we outline. our within the Our encouraging the see call. was our came green quarter as at track right margins It to in million, earnings continue forecast to provided last direction is in light

pursuant we These offset and initiating our expectations. the in to outcomes both benefit programs on late our for were February, diversity continue strength share impressive the with both profitability were our segments We Power Connectivity segment. in from of a program. These connectivity classes Shortly segments. of largely areas of within side and $XX stock the thereafter approved the open sales enhanced help Magnetic softness In million purchases market all Board authorization. repurchase to the

and during As has of the bias March XXbX-X including market an policies. purchases post with been ability open in our utilized a to company make shares, ensuring regular total on on-going XXX,XXX quota of million place, in repurchase we has company's a XX, the plan basis, broker to accordance $X.X

repurchase XXX,XXX April shares. representing of million, of total our a XX, As $XX.X program-to-date

member his retirement turn over many the John best insight the behalf that we May will this will member, XX share we Board, and In to company of counsel John to and XXXX internal upcoming and has at years. him expect missed, Bel past We meeting. retirement. these committee and that with will contributions On continue -- program end in the I of be announced has wish a which the order John, executing guidelines the March, annual have Board established. long-standing

team meeting. Valleta years We're excited Dave as vacancy, experience EDS. companies With Board of interconnected and upcoming with Dave our share old the about this continue [Indiscernible] instrumented potential global to of sales building David adding with organization implement component of of to upcoming given the nominated brings of be sales industry. growth included electronic new XX Board, knowledge experienced us will industry, tremendous in at the strategy. the to the management a growth and wealth director Belgium our in

this transactions that, said, as to become I Dennis promotion to executive these Power the the welcomed segment. Steve could In we addition now Lynn? last over team will the strategy changes Dawson of Lynn. on the go on to future When the be prospective in to of calls, as earnings press our for turn July team at transitioned will Ackerman level, Board Board, our and be noted will they with the years with the in and executive the call come.And retirement

Lynn Hutkin

From you, continued base we sales versus a lower at Thank from 'XX Dan. expansion a on in perspective QX 'XX. summary, financial saw margin QX losing

million, XXXX. will further. the $XXX.X of decline a quarter we Power sales was from majority discuss representing fluctuation XXXX sales by quarter of The First Magnetics driven XX.X% first in as segment at the our came and

in Our these largely our Power by were in 'XX gross driven Connectivity and XX.X% XX.X% improvements to QX from profitability margin increased segment. And QX 'XX.

first was last details of $XX.X sales million, lower decline decline sales to applications. XX.X% to year. some of due a consumer our group networking and products Turning mainly QX The and from in Solutions level. Protection product XXXX used the in sales the representing power Power quarter about for were

this 'XX, margin basis strength of which the point in in in a million grew our reflecting XXX first in the from we over XX% overall 'XX. rail improvement posted QX quarter, from QX sales products, QX in 'XX. Despite XX% of However, an sales reaching gross $XX.X sales, saw segment decline

case either QX items relates this as versus should of not more FX are lower and normalized on gross and overall gross cost and improvement segment. be factored favorable low-margin of sustainable viewing We headcount in improvement view Power side, nature the it driven margin temporary to being in the both of this side the including of of 'XX approximately that the balance half in into margins margin a The mix. procurement in are factors, or by basis point expedited reduction efforts, for volume as was product nonrecurring permanent fees

of more QX with renewals Credit the This into on were unfavorable sales applications terms. of margin XXXX, due quarter were Connectivity for Sales contract is and The segment. to in of million X.X% QX to QX'XX 'XX the in margin possible in million from significant improvement along impact consolidations of favorable totaled the XXXX, Mexico QX The was per made which in XXXX, in for implementation factors QX around into air efficiencies from from that divestiture of up for by expansion level in $XX.X Connectivity's Group. the was $X.X despite consistent Tech XX.X% that increase effect $XX.X X.X% year-over-year QX the QX completed June business increases 'XX. Group a contributed was XX.X% first offset operational previously went $XX.X achieved facility first Solutions quarter balanced peso. partially Products the FX up The gross margin 'XX. came 'XX, applications 'XX sales the to Turning the which commercial to at in million, wage quarter in through XX. defense XXXX. our a to minimum million, with related sold into amounted

The renminbi XX% driven the favorable from sales and At 'XX, XXXX quarter of million 'XX. QX margin partially level fixed reduced XX, generally on lower at Magnetic segments, $XX.X XXXX on Lastly, as related sales quarter was call hand. of QX from 'XX. decrease to in late last across work FX change representing posted networking the of with grew by 'XX, large overhead and totaled gross level margin XX% primarily sales facility versus XX.X% orders costs lower the was QX compared Chinese in March Solutions in first group as customer of offset by This completed shipments expectations QX volume XXXX. This to was in million quarter's were our in first earnings through they consolidations in largely product to resulting our lower in consolidated all related inventory line backlog into for the discussed $XXX this a the which XXXX. a in of China, the

administrative expense were amortization expenses down $XX.X SG&A, from were million or by Within million benefits of offset QX fringe and sales, in XX.X% legal general and 'XX. salaries, largely $XX.X fees. selling, an Our lower increase in

There the were of If to no you during recall, did 'XX. items fees we recur QX QX incurred $X.X expenses million MTS not motivation unusual of within and QX XX. in these SG&A contained note 'XX, legal related in

kinetic our that annual balance in XXXX and of should generated during from to and of the and Turning items. payments from seasonal first million. $X.X cash with our I'll million over insurance securities, primarily From an quarter a the related noted of the experienced reflecting We capital materials operating reduction ended quarter million cash included were million work into We $X.X It corporate $XXX.X levels $X.X a Farouq? million and that turn on The in now quarters downward past raw through lower areas the over we of as own from perspective, trend reduction to QX, inventory for premiums. call them. Farouq inventory sheet flows and flow be year-end. $X.X our to inventory in we activities the had commentary. the additional have continue continued expenditures QX bonus cash several year-end. to

Farouq Tuweiq

everyone. morning, Thank you, Good Lynn.

on call, of we slower last earnings half XXXX our anticipated noted side. be first As to the on the

results Our expectations. with in were our line first quarter

largely when quarter bit, today, the million of XX%. on items In is QX to gross outlook to XXXX, these for range a The as and discuss keep with of mentioned the Lynn. are of based second million expected in by XXXX in QX, quarter summary, volume to we'll the first of available the impact There expected to margins $XXX us QX for sales in to information our to to in sales $XXX the to of terms onetime QX bridging margins normalize segments. XX% our million mind $XXX expected range in range several given similar be XX nearby of with items

sales side, of not our million $X.X that to expected included On the in expedite revenue reoccur Power is 'XX. fee QX QX XXXX

QX that as XX. past estimated recur These orders tech up connected the in on last material call, XXXX. our storage included earnings previously due not noted Second, resulted will QX million $XX sales from 'XX raw from to of

current and in markets, levels distribution QX similar to while partners XX 'X. level balance lower of and of continuation represent which, business year QX power the sales The our Third, this their decline into $X.X end a 'XX. will softer million, given eMobility sales customers which projects to roughly from investment lower our a delayed eMobility QX the has down to billion were $X in billion QX relates rate our environment, expected by in anticipate consumer capital 'XX $X customers. is we at and interest this be will

On our segment $XX line the the in rebound accounting with slight million we're approximately given in projecting into QX the QX segment, Magnetics customers, decline renewals. that for sales levels, contract QX we from large given a side, networking a 'XX, QX are distribution XX 'XX status shipments of current only estimating from largely bit of recent Within expected our up are 'XX. Connectivity potentially and

level of we second will some end clip markets. AI. of Shifting to our drivers, Looking though instead will view medium-term about end a anticipate normal likely it inventory that and be switch excited slow markets product level growth as will customers of optimistic and X and quick half XXXX, steady a occur that and to speed reserve shipments highlight not we of space do depletion. and recovery vary Overall, the that their by rebound are we our expect more recovery certain to remain wanted areas line of and degree the I upon

since to market product first of its anyone space. Up of is harsh discuss years until environment. into. was very an and going product successfully limited. the market recently, applications work XXXXs. has the is It space end space had get Let's end into a takes that the for volume This Bel design

and multiple segment withstand As end, reliable XXXX. the We design in market in we both XX% year-over-year believe connectivity some will ground-based a been in context, components today. harsh connectivity growth as environment, year of To of XXXX, satellite optical wins proven successful securing full products. the copper with in growth in for of we're in support applications this accelerate segment To already million has and from the wins well legacy have these space better applications. supplier the as Connectivity provide in paying platforms market that we a space sales had ourselves military commercial result, our expected as significant $X.X and connectors that design in

alone, for full cycle into Similar a breakout applications of forecasting believe this shipped $X business, end the our million a we year million longer to XXXX up, and XXXX. product we but time has $XX ramp will hitting During are XXXX. point market this in of eMobility take first we quarter to of development space and are for the

continue our requirements. our to key internal our to in to customers' expand portfolio most also and invest extreme us market space-rated support products We this connectivity capabilities, allowing grow

second The the note area AI. of in of is area

we potential more segments, the Power clear. do the AI. future of AI not view biggest have Number to possible meaningful While we beneficiary directly our typed X benefit industry's becoming sales segment is to our today, transition as

if significantly Even more remain is to that the content segment supply of the general than per power Xx networking each currently systems to data participate be will X applications, traditional that consume centers support number a that the server dollar support in system. AI we power AI same, in the higher. products have expected we While

of is volume here item us AI products Another additional existing to just products that our capabilities modifications. some for designs of note need. Power will There's need product or this perhaps support no support new for and major future existing is minor our

a about about state With end there today, last a eMobility Bel customers, continue in for the and networking new computing. pivotal reviewing of that as evolution. we've of for about. point the believe in us. specialty an Space, available, exciting products. team those touch to for seeing early still There are at areas Bel's over targets. surrounding from nothing I'll We're and markets that volume The our the activity is us. market. what excited are a pipeline each discussions The available is are definitely we of the with report of variety assess becoming stages, to here increased While areas we unlimited, if just customers timing in to XXXX near-term potential of more Bel years our and been that to opportunities for scale is can of customers of we range very existing see on we volume here in item questions? appears is M&A and we actively us and early markets, the next high-performance M&A viewed of of term. a the recovery, happen XXXX. with with This open production has beyond potential current may evolving AI, orders are up end next also to future. good and they these are that, positioning seeing energized a new shift we starting robust consistent There's these we're many which many We're uncertainties opportunities the long history be and a be talking with but to Overall, growth support level to for long is

Operator

Instructions]. [Operator

comes of Litchfield Research. Theodore with line Hills from the first question O'Neill Our

Theodore O'Neill

a prepared customer, rate remarks, than Farouq you related this your to now. does it inventory lower growth slightly covered it QX? concern broader it's sequentially bit for quarter a is that but a I miss last was think issue seems in was And QX for single it you GDP primarily

Farouq Tuweiq

that into in little heading seasonally distribution, referencing QX, is into weaker, the folks miss touches inventory. which But QX, correct, I largely QX a numbers of think heading obviously, did with bit one. number little you're fall is a remember a which bit we the

more continuation look inventory as legislation. we So of at it

to same QX. of say set we in that the see saw let's from challenges QX we largely perspective, the say, a So people from still QX I would

regard new the for move So any, of there hoping right struggles, GDPs, it, things, if the GDP you we obviously, will. hasn't been call In the it are so in more to side direction. to all

a in given GDP. solution going more obviously, But it's from there. a customers be we impact think while different ultimately, not We technology value disconnected industry little do participate do there and to that think I it bit proposition customers. of is our our of a will

Theodore O'Neill

that X for in the on up supply following would And power the the space. about said Was to Xx? transformers you repeating you value it dollar mind what AI comment,

Farouq Tuweiq

Correct.

Operator

Our Co. Needham question with next from Ricchiuti of Jim & line the comes

James Ricchiuti

given A come seasonal when a the couple of Is of bit of a that year, pickup there's you just for questions. the environment? out Normally, less related a this to New of Year. QX, just in you driver current Chinese

Lynn Hutkin

this it's to QX a see do in level case. year, That's Magnetics been area But historically business for QX. the we're that's we large pickup where was now right to as at our Jim these just normally from But the so around. because in depressed low customers turn the waiting Yes, Magnetics QX.

we're a not within Magnetics, seeing degree. So just the not from seasonal pickup to QX little QX bit, same same but that

James Ricchiuti

Remind -- us when half you just the did comparisons again, what when as the to sharp see get falloff I easier. of guess, sector? When compare they Because of we terms in and that? when the is back really think trying we're networking sales really about lapping do to in do the start the you get year,

Lynn Hutkin

talking Magnetics? specific you to Are

James Ricchiuti

business. bit weakness Well, falloff it the that in however of we've year? characterize Did big sharp Did a part it, also real you But start sector that see the sounds touches you seen like on in a QX little to want Power. market that last of to in decline? happen the

Lynn Hutkin

talking in defined just a QX of So QX. we further about first, decline 'XX, if Magnetics, is seeing we're started in

November occurred 'XX. recent most in the of think I drop-off

what is for a call off We to projecting months in it, in felt we're be similar it that this QX. and in in still were drop basically, there QX QX, environment. of So fall X here

and that see QX the side, drop-off, down QX Power strong networking didn't QX. side but large as it as year. going the bit We very last was did start on a in a in on So

James Ricchiuti

of just maybe this try we to distributor in of put to and might a would that of And seeing break that question you're have And rest what characterize of the to terms have we out do still the terms where destocking that? if last aside environment we in quarters How business? a destocking. Or and Magnetics whole second. you piece, couple the for inventories the see relates whole much? Has the improved

Daniel Bernstein

in should that was some all processes. But in and by the is feeling start and back to visiting might should things bottom Bernstein. I rock all quarter, hit we the pushed be of our is X February, Daniel This improve. and But today the always go change ordering key It's inventory was I fourth they're months. distributors back normal to that Europe, the saying and crushed they at end of

Farouq Tuweiq

think, I And on like a hit also of that not well, Jim, as right? It's just a flip we switch.

So be pickup type will a it rolling of kind mix.

come be day something But one on Dan's to it's mindful, out just X. later. something earlier, clears it point, So all come can

Operator

Our the Susanto next comes Gabelli question Hendi Funds. from with line of

Hendi Susanto

on I think would gross your margin. about how like get more to insight to

Bel has margin. I think demonstrated scales, given lower gross resilient the Fuse

the when, be of can margin should recovery? say, how of and market we has expect? we meaningfully how thinking is that expansion let's Like So then taken the margin gross not gained gross should scale recovery Or the meaningful somewhat on has we revenue expect enough? much sensitivity place sales

Farouq Tuweiq

mix plays say really So that Hendi couple to things part. a a of I'd

gross will and it a recovery compress that's really profit your we when operating But Magnetics is So margin in Magnetics margin. obviously, business gross seeing by healthy, nice when our running definition, EBITDA. start business, has again lower it letting

be gross it's the contributor nice margin real So on best profit while not may out a the the line. there,

product play also a is each mindful. to some So and our like Connectivity will factor. we one, is within groups Power mix Two there that things need this of be

think current be to tend that we way it be that, additive. the increased there about levels. is guided to our and If leverage, to XX% would is that's XX% we So going we to expect operational at revenue,

great and beyond little that upside. way the Lynn able the durability what we here And new at out guiding as And commentary. and of positive we current be we of our We a here. doing it, at is more deliver XX levels fluctuations her in should think that are EPS. about the fact on anything the covered to So to a the XX, to bit called above as look

Hendi Susanto

more end should have opportunities growth could give centralized computing? insights presence to versus more Like about or let's able application, space? be the exciting or pay color should it specifically, be say, which and you for we attention in then in Would Leo you talk general? you do and AI, for networking with about to in products, AI And space AI satellite

Daniel Bernstein

think space and Amazon, now, working with for build with closely we're satellites I to do the we filed relationship SpaceX. a we're all very have looking Amazon

Farouq Tuweiq

the names is and broad relationships our characterize is where orbit. household military commercial there you participate, the on is the hear I'd legacy and a on So given both side our we that it's based uptime the

going a things we cycles, So but with both space up have business like in commercial revenue growth. by said, obviously satellite, you military. on is our design long the are and generally pastor These as evident years,

will some us. things about we're to some as that think drivers as going be market But able going we talk know up we overall be can not is that more end space to there's beneficial there, about more fundamental and talk we So to an about. things

side, side things. fundamental know there that when AI requirement look we the we On do is AI, at of a

for there's also management. power, more higher of need for power density customer and just more So

So where it we succeed in years. doing developing been products, for these we've exact

power shelves. high of some very density on have We the

everybody We also with specifically, necessarily scale there. also we given But chip X the we find there's our big about. where at play. it, kind big and when that we commoditization That will not be hears focus the good cloud of at have the relationships giants, could of manufacturers where heavy the kind really look wafer that's

suited more players. is networking better on be will we the where So

and So where for been we developing relationships, have time. existing have we

frankly, bigger, there. new the folks some there's side, more emerging have maybe headline some compute out of better, powerful than the players On in and there quite chips that

and There look networking our it come compute are to up on have we as well one approach. shifted really of the the bit customers, systems expanded. and it the in two-pronged a come at side new players And existing contents will obviously a the these side. So maybe us, on little for the

that and as on from space, exciting What AI bit able we But I products, expect a was is identifiable goes nature little our there would things we talk purpose to going I to and are that that be can is time may our to see. specifically going this is So also to they AI that we we similar because of The thing here. or know or identify purpose is general the it we're to talk more other with send AI. there AI. general identify we of not to it it. Power because about drove maybe customer, But nice we'll the say AI about to we about then applications one mean may know an of know by

things we good a is we of unidentifiable there speak generally limit competition clarity. to that that but AI, as will know do can amount our we So with

that various direct I a of The the equipment. ecosystem say thing other supports whole AI lot on is a there the is testing players would through

into So supply lot a AI. tens the here of we'll secondary do we by required that's a equipment because impact have the stuff

from angles. a it few touch we So different

Hendi Susanto

toward think XXXX? development half second priority be will investment, we the speed bit then be on XXXX And and I is beyond should now. will or AI rapid of the How #X Farouq, be like thinking it opportunity their AI, given about

Farouq Tuweiq

the be this, $XXX so careful nobody of and also to We revenue just more is it, orders saying, about, million QX So QX careful with of guys. may next Hendi, and some be nice to we're the seeing started guys, talked started a some so into make seeing little in we what call from we these, networking X -- want compute bit I coming the here. going in

call it steady a to climb. So be, expect we let's it,

think the to over probably from have goes meaningful I so on. XX on, expect over more XX year as XX, XX would percentage and jumps we

comfortable little but more once to start little bit more, wanted AI be we we I we a just that. talk think more So to will reveal a about with

Hendi Susanto

have one I then And question. more

on weaknesses on milestone the your EV, Given investment? any electric the in and update expectation

Farouq Tuweiq

things on thing. knew the would EV investment, perspective, of And some electric is XX-XX our I largely would this investment the So milestone reason track. largely it last year, I a development seeing is say our obviously, going on. as there was early When say, same not that's from we electric the we business did it's the a with

So there's some products worked that being developed. interesting are and on

So we through XXXX in market, terms the be an coming we market as of those products expect about ready their of we XXXX. think out and in to bumpiness out ideal in this get world, for in

So we customer within look and see track base. at it challenges the not, of but do we some as on same their

Operator

of Bobby question next from with Capital the Our Northland line Brooks comes Markets.

Robert Brooks

should around additional we how managed broadly, you buyback locations mentioned XXth I'm surprised the the is And of think pace $X it stays strong should that assume Obviously, buyback more guys very So Dan, where of maybe was, April, as above did an of you of we million. that the forward? going so repurchased what number, I think wondering that it came just far level? in

that's the first So did you in quarter. the pace that beating

get pace gauge So forward. that going about Do trying how a buyback on that I'm stay think range? to stays just at you $XX, to in the $XX the that stock

Farouq Tuweiq

got we real the obviously, is, about so we've assess are time. to these always this it, So little a think moving, Bobby, way bit

is be of program. largely little through in We're if a expectation things move our a $XX extend Obviously, roughly terms that to may through the $XX event. but expectation Our program million bit, that XXXX. XXXX million is in is getting through the

blackout we're period. that As our Dan in also noted

we'll X, program purchase it. blackout is here an our autopilot. in out of the it So at come another days, take look We X and

has Our on bought back. much how fluctuates program bit buyback price we depending little a of -- the

to end price through at we the long the of of is to the the how that on it change may So but depending market bit maybe year, program little we're this expect way question and is terms doing a be your pace stock of going. down answer a in

Robert Brooks

on market basing something follow-up of year-to-date where is, you Fuse is stock at a group a just price off more in or doing. you're you certain just it of in Bel then that And just it of more Is the maybe so range. comparing terms is Are it so a how looking performance? Or indices? stock broader terms peer the mentioned

price need based price it more on in give stock where to obviously, don't Bel think it isolation. to You is or range, that is you Fuse's relative

Farouq Tuweiq

say the need where we're in So lead always delay factors of really we market, of respective and that I would we're the not it's would aware our try to think of views really, price one value. the is. been has to where amalgamation to where stock an be us our I is industry But But at. of

I would that guiding it in north be. think should probably our terms we where is start say of So

at without So where will that from And we'll is, the different and we be to scale how saying. it look down, obviously, factors. goes up that's on it as it it and

about have but we the change anything good feel But very may a part, for We strong pretty that, cash it. change. position, were that with most to

Robert Brooks

And interesting those interested just quarter. most that on Europe quarter the in up you That your in want mentioned follow the Dan, that and European initiatives growth call. I early the on speaking revamped was to I know, in force. fourth sales the just guys initiatives, And I'm that really to on past positive. reads you're guys you detailed

for take to it few any hear it inflect growth those on you just to curious ranges that initiatives financials, know on but colors I mentioned? a any curious early reads, So might

Daniel Bernstein

standpoint from we think, the [Indiscernible]. a like a director a from distribution great put for She was as a people with we background. distribution people entree again, very I last in a with Avnet. strong new relationship time, standpoint and manager has mentioned sales She

opportunities example, fuses. seen opportunity capture confident $X of saw we've X is So over got them. pretty can And we before for we that X never million. we think in have Each we're that I

opportunities that's covered so users, opportunities a a $X well hoping, order we definitely take very of to to But time, going some that talking to pretty have of So and it. it's but when there's to if very, again, we have force planning they'll costly. direct a And big we're X lot sales over those forth, But use things get again, we're it's again, of seeds. pretty more coming some like us. of in million there's Europe look

might So well how look on our we again, working change does exciting. very in Asia out. position And how and it how we're again, at Europe

Farouq Tuweiq

point cycle. And don't so Dan, I to design cycles, know, X long you'd design X-year agree, as Dan's expand bit little think we're but on well, a months I if

So with inventory development. seeing key this environment we're more in a us the is for NPI lot

is opportunities I'd the pick alignment also So for getting on works but the we'll above of QX, some which for of because I European say, we're legacy there and pursuing a customers, comment it's the product business the our products. in us market I us, as is and And see how rich this the through, there. out Europe, definitely to team say, would performed, getting our testament approach once environment out see new up, more inventory better with a we'll

So we are about excited Europe.

stuff have added But a we're nice the of we've also as we're some here out to that and On positions well the coming strategic couple team. team U.S. continuing as of seeing well. do side,

Robert Brooks

for point, then environment. excellent space. market the last edge on clearly given harsh that's color guys exciting where the end just of have an the of history And and maybe reliability gave you already long you the back circling an Guys sure, on

is, what market revenues outlook? the into you a revenue is could curious what discuss ask how So X-year maybe was in think in where continue maybe you there that see opportunity doubling you're over do maybe the And the planning market 'XX path I differently, to on end to space is or could grow fiscal you that?

Farouq Tuweiq

quickly. it's moving pretty think I

and rapidly funding, going sampling we As very that tailwinds it, there and know it's Obviously, in start the you about into the volume We and rapidly testing things. internally growth joke versus it's the evolving. then at different business. where EV that's a leach clicking you'r pretty for we new and customer base years, of look has the space low side right,

down of there's earth going a So we increasing depletion that to where ones I go this space, satellites, it. for back a in us will of things rate be say come have lot these lot and useful natural a think would nice to funding of will There's the there's life is things number thing as ultimately of just new there this up. sheer going just up space. a about into And

million on projecting, $X $X So in it, think business, that X-ish both coming as number grow Again, low-volume as up of saw year million, we're, a maybe of and we say this call sellers this, rate. would bit be was it a there, $X.X up will And that of more it high a And million, to end. terms our result the I historically, a call replenishment little for point XXXX, tip maybe that, we it, year. in expansion also a but maybe we then to maybe just wins way. we're

campaign So things it, have it, of also nice us on -- targeted we, terms into our as via our way the and things, doing marketing growth our expanding side create typical we of shows commitment terms a to where of that reach. website, the your of trade let's customer do space but drive we'll side for in both call more further more awareness we're expect also some and to rates in just

But we'll in So we're table 'XX, I few see hitting mean goes. see where we'll the for the here. off that different progresses a us but how is on planning year ways. not doubling it

Robert Brooks

then space. And on question just last maybe

million, a $X historically, for it million $X you. margin, So market low I a talked was end how year about

working where then guys more in you table you with value a these just And pricing? are the that Or new is more guys it? the what better just margin point because higher technology you're much only get like guys first. at and So customers who value bring orders therefore, to it secondly a approach that's taking there's you

Farouq Tuweiq

little From at it margin. No, this. that. never a want it leave was of more we a perspective, margin I'll definitely

that's the think so we it. way about And

call So very growth a it, gross mix, there a will positive let's from perspective. the margin have

Robert Brooks

guys I so the $X right, second you was shipped make was point million. going to And

number the think or orders? million like run production development I products maybe was you that us small versus towards you how quarter. Could of in stuff testing said first $X you give sense product new million was shipped much actual the of a of $X

Farouq Tuweiq

up. they're it's bit ramping say of little well ramping a mix, that a say but would would up, these we're as probably definitely I things are I

We that end the maybe So of in probably I'd some runs. say we is expect do majority QX. QX as call QX, it, into of it small maybe into larger runs, some

expecting of So into number space. bigger go again, we the are EV things similar business, to to a

bit largely would probably diversity in little if customers, So I it's that but more the, a sense. of say, makes

Operator

question Our Susanto of Funds. the Hendi next comes from line with Gabelli

Hendi Susanto

Do fairly have that flash in packing one that factory may like with take of out Dan, based earlier, take what into some may may that place conversations mentioned follow-up. inventory have out we'll year. see I insight like later? you like place distributors may some you on your see sooner when terms any flush the of in will versus the orders like one one this

Farouq Tuweiq

be comment? existent relation Could in this to Dan's

Hendi Susanto

essentially, see late Like that correction completion basically inventory with inventory versus maybe correction towards one indication may any the XXXX? like if the there's like solar

Lynn Hutkin

or So types, to Hendi, are asking we distributor specifically distributor -- you by who

Hendi Susanto

or group product by areas. by no, No,

Farouq Tuweiq

market the think I end really there. the and depends it Ultimately, customer on

Daniel Bernstein

people the that got that they situation. inventory and And the consumer we're to semiconductor. strong. huge components. our on where more in, received you think by product circuit have if group, the They go the hit that's basically, from we're get that What is CDI very things group support. products is kinetic the the is semiconductors the our distribute, really to network they group, bingo, look power our getting our never in own consumer at into problem In is military aerospace channel, going passive most retention Magnetic old I product but from of to coming thinking and based

Operator

with like to end reached And closing Dan of the over the turn would I session. Bernstein comments. any back for our that, have floor question-and-answer We to

Daniel Bernstein

you to forward and you soon. joining Thank we're for today, looking us to speaking

Operator

teleconference. This today's concludes

You may time. disconnect your Thank lines for your participation. you at this

Bel Fuse (BELFB) 26 Apr 242024 Q1 Earnings call transcript