Analog Devices, Inc. (NASDAQ:ADI) Q3 2023 Earnings Call Transcript

There’s not a real way to aggregate that, except to say that we have a relatively good correlation between our end customers revenue growth and our growth to those end customers on an individual basis and when we look at how they grew in third quarter versus our shipments to them and how they’re forecasting or you guys or consensus forecasting their fourth quarter growth versus our shipments to them, we know that we’re going to be helping them to pull inventory levels down, which again makes tremendous sense because lead times have improved. And Mike, I didn’t…

Michael Lucarelli: Sure. On the first — it’s good question. If you look at the first quarter, we always typically undership consumption in the first quarter, why? You see a lot of our customers reduce their working capital going into end of the year-end. So the down 5% in our — seeing the seasonal first quarter is below consumption. I think after that, you get back to kind of what Vince was saying you get coming back to demand and consumption, all kind of imbalance. And then it comes to a question of macro, what’s happening in macro in our second quarter. Thank you, Josh.

Josh Buchalter: Okay. Definitely helpful. Thank you.

Michael Lucarelli: Any time. Thanks, everyone, for joining us this morning. We once again will be on the road a lot this quarter. You’ll find us in New York, Chicago, Florida, London and San Fran. Reach out to IR team to be notified when we are in your ZIP code. And with that, thanks for joining us and the interest in ADI.

Operator: This concludes today’s Analog Devices conference call. You may now disconnect.