Gentex Corporation (NASDAQ:GNTX) Q2 2023 Earnings Call Transcript

James Picariello: Got it. And then just lastly for the — for next year, the 2024 target. Last quarter, you were calling for plus 10% revenue growth on a plus 3 global LVP, now with the growth of our markets 10 points instead of 7. Is that 10 points of growth over market, the right way to be thinking about it as we flex — as global LVP changes for next year, is the 10 points the right marker?

Steven Downing: I would say somewhere in that 7% to 10% is probably the right range. What we’re looking at and the reason why you saw us take a little bit more aggressive stance as a lot of customer orders are starting to firm up now through the second half and into next year. And so we wouldn’t expect massive changes in take rates, for instance, on FDM, lower than what they are currently. And so really, the strength in the first half of this year, especially in FDM volumes gave us the confidence to say, okay, we’re not expecting any retrench and take rates on those technologies and features. So the incremental business is really what we’re looking at and estimating what that’s going to look like. And that’s — we feel pretty good about the second half of this year and where we’re heading into next year from an overall revenue standpoint based on the product portfolio.

Operator: We have a follow-up question from the line of Ron Jewsikow with Guggenheim Securities.

Ronald Jewsikow: Yes. Just real quick on the 2024 guide. Sounded like there was something in the new product side launching in the second half of next year. I understand it might be a bit early to talk about that. But just — any update on either dimmable surfaces or driver monitoring anything that could be driving the new product launch in the back half of next year?

Steven Downing: Yes. I think what we’re really focused on right now is making sure on the large area device side, making sure we’re working on the underlying tech. So it’s really not about LAD launch in the back half of next year, but some of the other features that we’ve been showing at CES have been getting traction over the last couple of years, and we’re expecting a couple of those to hit the marketplace late next year.

Operator: That concludes today’s question-and-answer session. I’d like to turn the call back to Josh O’Berski for closing remarks.

Josh O’Berski: Thank you, everyone, for your time and questions today. This concludes our conference call. Have a good weekend.

Operator: This concludes today’s conference call. Thank you for participating. You may now disconnect.