Distribution Solutions Group, Inc. (NASDAQ:DSGR) Q1 2024 Earnings Call Transcript

So if you think about wireless and communications or industrial electronics, the Hisco is seeing some — had some volume in the activity in the programs that were coming through the OEM programs of declines there. And those were reflecting kind of more amplified impact that we were seeing over TestEquity on buying test and measurement equipment. So there’s confirmation that it’s — some of what’s going on seems to be in those industry verticals and that they’re just — they aren’t making as much through their OEM facilities or if they’re having some struggles in their own end markets, they’re probably not spending as much money on their R&D equipment in their labs. And so at some point in time, we are — just because the way that we think it’s trending, we think that those dollars are going to be coming back.

But we don’t feel like we’ve lost customers. We do think we lost orders at times during the fourth quarter and maybe even a little bit in the first quarter where there was a natural pricing activity that we weren’t willing to match.

Katie Fleischer: Okay, great. Thanks for all the color.

Operator: Thank you. As we have no further questions on the lines at this time, I will turn the call back over to Mr. Bryan King for any closing remarks.

Bryan King: Well, that’s — I think, we really appreciate everybody’s time. Obviously, we’ve got still a lot of moving parts in the business. We are very encouraged with the work and accountability that our teams have been putting in across each of the three verticals. And we’ve got a lot of confidence in the business that we are continuing to build and how we can drive returns on invested capital and structural margins over the coming years. Thank you for your time today. We look forward to speaking with you again when we report our second quarter results in early August. And have a great day.

Operator: Thank you. This concludes today’s conference, and you may disconnect your lines at this time, and we thank you for your participation.