Matt Johnson: Yes, I understand the question. Quick and honest answer is we don’t know for sure. There’s some really interesting behavior out there in the marketplace. For us, we saw industrial enter as a start of a decline much later than consumer. For us, I think it was around where we really started seeing the signs of softening. What was remarkable for us is usually — I think historically, typically, usually, it’s much more measured and not as abroad. But across thousands of customers, we really did see that segment just really slow down big time really going from Q3 to Q4, and that was reflected in our guidance. So — and the reason I explain that is, yes, so we’re a few quarters into the cycle correction as we see it, but it also hasn’t been a typical 1 in the sense of how severe.
So we’re assuming and it’s going to continue for the next few quarters. And even with that being said, we still see this as our trough or bottom and able to drive sequential growth from here. But I wouldn’t call the market is done and we believe Industrial still has some time to go. But with the caveat, we also haven’t seen it go down as abruptly as we did in this current sector.
Quinn Bolton : Got it. No, that’s helpful. And then — just a question on the Disty inventory. You guys said it came down to 79 days, obviously, down a ton in terms of dollars, given the lower revenue level. Do you guys have a target that you’re shooting for that Disty. I mean, I imagine as revenue starts to recover, if you just kind of hold Disty inventory flat that the days and Disty’s going to come down still pretty nicely. So just any thoughts you can give us how we should be thinking about where that — where you want to try to get Disty inventory
Matt Johnson: Yes, understood. Yes, I think we’ve said over the last past few quarters, in normal times, whatever those happen, we’d be somewhere in the 60- to 70-day range as a target. It’s not an absolute or a hard target, but something in that range. But right now, it’s obviously higher than that, but on a much/lower revenue level. And as you pointed out, that could spike very quickly as things start to ramp back up. But you have to counter valves that with the whole industry spooked by inventory right now, right? And everyone is trying to work down the inventory and that’s what you see out there. So distributors are trying to work it down. Customers are trying to work it down. So if we’re honest about it as an industry, we’ll probably swing the pendulum a little too far.
Maybe this will be 1 of the times that it doesn’t happen, but it’s possible that you’ll see those inventory levels go down, and then there’ll be a balance on the other side that’s faster than anticipated because we take it too far as an industry. We’re trying to watch that. We’re trying to be responsible and do our best to manage it. But the real focus for us and problem child is end customer inventory which is going in the right direction, which is encouraging, but not done.
Operator: And our next question comes from the line of Gary Mobley from Wells Fargo Securities.
Gary Mobley : Matt, you briefly covered this in your prepared remarks, but I missed it, to be honest. I was hoping that you could share with us more metrics on design wins in retrospect, specifically 2 what the growth in lifetime value was for the design wins captured in the period. and as well whether or not there was a particular emphasis on any 1 wireless standard or module generation. I would presume the majority of it is on Series 2. Any color would be helpful.
Matt Johnson: Yes, sure. So yes, I think in the prepared remarks and I think we said we did deliver to our target, and I’ll mention in a second why that’s remarkable. And we saw that as a big deal because as we entered this year, as we mentioned last year 2023. We knew it would be a great market environment, but we didn’t anticipate it would be the size as well. But we set our design win target in a different environment. And usually, when you see the market drop like it did and as volatile as it has been, usually, you see that convey and impact your design win performance. And the reasons are multiple. Like think about it in real terms right now. We have customers that are working through inventory that are trying to work. A lot of customers are doing R&D reductions, so they’re impacting schedules of project that way.
All those things come into play. But we’re certainly not happy with our revenue performance in 2023, but the team was able to secure and deliver a design win performance that was on that original plan, which is outstanding. And the reason to be very direct is serious business. right? We’re still knock in the Series 3 design win phase yet. There’s still a ways away. But in Series 2, as I said earlier, it’s knocking it out of the park, and that’s the engine that’s driving design wins. And the easy way to think about it is right now, that drives the growth of our funnel — opportunity fund that drives the design to growth, and that will be the major driver of revenue growth. And that’s why we’re so excited about Series 3 because now that we have that position in the market, we can leverage that with software compatibility and portability because what our customer realizes investment in Series 2 is also an investment in Series 3, which is off.
So we’re starting to get that critical mass and position with our platform in the industry. that will serve us well. In terms of the other question, it was pretty broad, honestly, in terms of all our geos saw good progress all our wireless technologies saw good progress. And all our focused end market segments saw good progress as well. If you wanted to call out some big one, it would be what you expected. Areas where we’re just really seeing great progress in cleaning up those secular growth areas that we were talking about with Tory earlier, definitely having a big impact. And then take an area like we’ve been consistent in Bluetooth, where we see strength in all of our wireless areas, but Bluetooth, we’ve really just seen that off and grow from a design win perspective, and we see ourselves continuing to take share there.
that’s 1 that you could probably call out and withstand now. And as we’ve been saying, I expect we just released the soft lot for Wi-Fi, you’re going to start seeing the same in Wi-Fi as we bring industry-leading capabilities there as well. So those are the drivers, Gary. Hopefully, that gives you some perspective. But no one thing aside from destination strength in Bluetooth. But all the focus areas performed very well, and we hit our market
Gary Mobley : Thanks, Matt. Your main foundry partners is basically calling for a pretty good rebound year some pretty good growth. And I realize a lot of that rebound is a leading-edge lithographies maybe not where you’re at, but to put this in the form of a question, are you potentially going to see maybe higher foundry quotes and as well related some expanding lead times could we possibly see lead times more than 13 weeks at some point in the year?
Matt Johnson: Sure. Don’t understand the question, for sure. I think that we’ve been very deliberate about our 1 strategic inventory build internally, our die bank to smooth this out. Going into the supply crisis, we were carrying a much lower level. So our intent by having that is to try to smooth the response and not have it be as abrupt and monthly. And we have a great relationship with our all our foundry partners, including our largest. So we feel just to be very blunt, we were able to navigate the supply prices with our relationships and partnerships, I definitely believe we’ll be able to navigate the other side of this downturn that we’re in. And I think we’re much better prepared. We’ve learned a lot. We’re carrying different die bank.
We’ve learned a lot about forecasting, watching customer inventories, et cetera. So I think the confluence of all those position as well. And I do believe we’re — from a supply perspective, very well positioned to navigate all things considered.
Operator: This Does conclude the question-and-answer session of today’s program. I’d like to hand the program back to Giovanni Pacelli for any further remarks.
Giovanni Pacelli: Yes. Thank you, Jonathan, and thank you all for joining us this morning. This concludes today’s call.
Operator: Thank you, ladies and gentlemen, for your participation in today’s conference. This does conclude the program. You may now disconnect. Good day.
