Stacy Rasgon: Got it. So I guess, does this mean, are you effectively over shipping demand right now because the backlog is pulling it? Or is that not the right way to think about it?
Prashanth Mahendra-Rajah: No, I would €“ I’m not sure how you would conclude that. We are €“ we have the €“ we have demand from our customers in that backlog that tells us. I want this product in Q1, I want this product in Q2, this product in Q3, and that is what we are matching up for. But it gives us a visibility that we have historically not had at this level. That is why they are not as incentive to put new orders on us, is because they’ve given us those orders, hence book to bill below one.
Vincent Roche: Yes. One other thing we’re pointing out, Stacy, is that we run €“ our demand signals are sell through. We run our factories on the basis of POS demand rather than sell in or POA demand. So it gives us more integrity around the demand signal.
Stacy Rasgon: Got it. Okay. That’s helpful. I won’t monopolize anymore. Thank you so much, guys.
Michael Lucarelli: Thanks Stacy, for that three part question. You use your question for next quarter, so we’re not going to €“ have the call next quarter. Next question, please.
Operator: Thank you. One moment for our next question. Our next question comes from the line of Ambrish Srivastava from BMO Capital Markets.
Ambrish Srivastava: Hi, thank you. I’m going to keep it to one. Mike, I don’t want to get any of bad site. Vince, I actually wanted to focus on a bit on the long-term here. I was called out a much higher growth rate for analog and for themselves as a result. And I was wondering if you share the same view, I know you guys have had a 7% to 10%, and Vince you have always all the conversations over the years, you always felt that the analog industry going forward should grow faster than the 5.6 odd that we’ve seen over the long-term. So I was just wondering how you think about analog growth and you called out a bunch of secular drivers that, four or five years ago didn’t even exist for the analog industry and broadly for semis. Thank you, Vince.
Vincent Roche: Yes, thanks, Ambrish. Well, I think, as I pointed out in the prepared remarks, we are seeing more, for example, in the industrial space, more content per dollar of CapEx invested by our customers. And that trend has been in play for several years now. That coupled with ADI’s portfolio strength, the breadth we have the, as I mentioned, the data path, which has been ADI core, ADI traditional strength, adding LTC and Maxim Power portfolios. That gives us the opportunity to tap into more of the TAM, so to speak. Half of the analog market, TAM is kind of data path. The other half is power. So we’ve now got the, the highest performance portfolio in the industry, the greatest breadth and depth. And, when you see what’s happening there with healthcare, our digital healthcare business, which is getting on for, kind of a $1 billion over the next year, year and a half aerospace and defense, coupled with automation and instrumentation that we’ve talked about in the prepared remarks.
We’re very, very bullish about our ability to drive growth in the market. The other thing I want to point out is that we focus on driving our revenue growth through high quality innovation for which we get paid. We get three times the ASPs of the analog market at large, and we get more than that, compared to our biggest competitor. So I want to make the point that we focus on shipping value versus volume. So I think with the sector growth drivers, the way we’ve structured our business model, our focus on high performance and being able to capture more value with all the things we talked about over the course of the call here, I’m focused on what we can do as a company and I believe we’re better positioned than ever.
Prashanth Mahendra-Rajah: Ambrish, Prashanth, maybe just a just two things to add. First our long-term growth model is built on all of our segments. So industrial certainly is an important, very, very important part of it. But we look for all of our operating segments to be able to contribute to that. We’ve had two consecutive record years with greater than 20% growth. And with the numbers that we’ve shared today, we’re off to a strong start for 2023. Our 7% to 10% CAGR outlook, which we revealed, unveiled last April, already reflected a faster growth versus sort of the historical mid-single digit rate. And as we said in the prepared remarks, as well as in addressing, I think it was Tore’s question we have a, we have meaningful delta with the revenue synergies from Maxim, which is really idiosyncratic to the ADI story.
Vincent Roche: Yes, I just want to add one final comment to this, just want to add one final comment Ambrish, to this part of the conversation, I’ve had innumerable conversations with CEOs across the globe over the last three years in particular, it’s certainly intensified with the crunch on supply. But I got two consistent questions from them. Irrespective of what sector they’re in, how can we get closer to ADI’s longer term technology roadmap, and also how do we bond together more tightly when it comes to understanding supply chain and collaborating more together across those two dimensions. So that’s the sentiment and I think given the way we’ve conducted ourselves over the last the last three years we’ve, we’re better positioned. Our brand is has been augmented and strengthened over the last several years. So yes, I think we’ve got a lot of strong logic as to why the market will strengthen and why ADI will be better positioned than ever to capture the opportunity.
Prashanth Mahendra-Rajah: Thanks, Ambrish.
Ambrish Srivastava: Thank you. I’ll jump back in queue. I don’t want to get on mics.
Michael Lucarelli: Not a bad side.
Vincent Roche: Last question?
Michael Lucarelli: Last question please.
Operator: Thank you. One moment for our next question. Our next question comes from the line of Harlan Sur from JPMorgan.
Harlan Sur: Hi, good morning. Thanks for taking my question. There’s second half uncertainty as you mentioned, probably more so in your comms and consumer businesses, maybe a little bit in industrial due to the soft PMIs as was mentioned earlier. But global auto demand trends, especially EVs remains pretty resilient, right? And you guys have a strong design wind portfolio and automotive that is starting to unfold. I know last earnings call, last month at CES, the team remained pretty confident on growing your automotive business this year by double-digit percentage on a flattish, sort of SARs. So, if you look at some of the third party research, I mean, SARs is forecasted to grow 2% to 3% this year. So is the team still confident on driving strong double-digit percentage growth profile this fiscal year on auto?
