Release Date: November 06, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: How do you see the inventory of Vishay products at distribution, and when do you expect distribution to start pulling product and growing inventory again? A: The inventory at distribution is nearing a normalized position for passives, while semiconductors will take more time due to over-inventory from competitors. Asia inventory is at about 18 weeks, Europe at 22 weeks, and the Americas in the low 50-week range. We expect normalization of passives this quarter and semiconductors by Q1.
Q: What areas of growth do you see for Vishay in 2025, and how should we think about the region mix of revenues over the next few quarters? A: Growth areas include smart grid infrastructure, AI applications, military, aerospace, and automotive. Smart grid infrastructure is expanding, with large orders in Saudi Arabia and Europe. AI opportunities are growing, particularly in servers and automotive. Military and aerospace demand remains strong, and automotive negotiations for 2025 show increasing quantities.
Q: Can you discuss the current pricing environment and the mix of commodity versus custom products? A: The pricing environment is consistent with previous calls, with spot opportunities requiring competitive pricing. We are expanding our commodity portfolio through subcontractors, aiming to be a full-service supplier. Both commodity and specialty products are expected to grow as overall revenue increases.
Q: What are your priorities for the use of cash over the next 12 months? A: Our main focus is on executing our strategic plan without jeopardizing capital. We have committed to returning $100 million to shareholders this year. While we have done several small acquisitions, the strategic plan remains the priority, and we will borrow to fund Newport.
Q: How is Vishay positioning itself for future growth and market trends? A: Vishay is expanding capacity and focusing on innovation, particularly in semiconductor and passive components. We are on track with capacity expansion projects and are increasing our product portfolio through subcontractors. Our silicon carbide strategy is advancing, with plans to release new products and engage with automotive OEMs.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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