Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
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| Statement |
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| That is a very compelling opportunity, obviously, doing that well, enhances the range of the car, which is one of the most important elements |
| And so, that's been a very nice positive trend for us |
| And we've done very, very well so far with that business |
| Unidentified Analyst You guys have been an excellent gross margin story through time, given that now the cost structure is such that you have 30% fixed, 70% flexible |
| And so, we've given them a little bit of a breathing room, to burn off some excess inventory, but we feel very confident in the long-term growth trends of radar |
| So, we think that our model works well for us |
| You have very good cash flow |
| I mean, you've had so far a very much better than peer kind of results |
| We think we are going through a bit of a soft landing in autos, but we do think that long-term, the growth rate and the content growth rate, of autos is something is very attractive, and something we're very focused on |
| But obviously, some of the core capabilities you talked about came from the Freescale side? Jeff Palmer In the limit, it was an excellent deal |
| So, I think we've managed our channel very well |
| And so, we think we're uniquely positioned to offer that full stack, to enable processing fabric, if you own the car |
| It sets us up very cleanly for - what we believe is the beginning kind of, the next cycle of our industry sometime in the second half of the year |
| The highest they've ever been in the history of the company, the last several years |
| You feel good about that longer term kind of as you work through, those issues |
| The channel is effectively a margin accretive channel for us |
| And I think that's really what differentiates NXP |
| So those two things won't be synchronized, but that's the way to kind of think of the drivers that could drive gross margin higher over the long-term |
| We thought that business would grow from about $600 million in '21, to about $1.2 billion in '24 |
| That could be a very good trend for you guys, if you're the beneficiary of that |
| If we look at how the businesses are trending in China, and other parts of the world, it's continued to grow |
| That business, we had expected to grow from about $200 million in '21, to about $400 million in '24 |
| As we start to refill that channel back up to the two and a half months, that's a margin accretive event |
| That kind of security capability has also allowed us to do things, like introduce ultra-wideband solutions, which is an RF device, but lays off the security in the mobile wallet |
| Can you talk to the gross margin and operating margin trajectory of the company? You've executed really well there |
| Are you seeing that elsewhere as well? And is that - you seem to have pretty good capability in like low-power MCUs |
| Great deal |
| So you can kind of do the chainsaw math, as gross margins grow and revenue grows, you will get some leverage on the operating line |
| And we're above that growth rate that kind of should value growth rate today |
| More safety features, more driver comfort features, and just higher electronic content that EVs are pulling along |
| Statement |
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| We did see some very disturbing trends coming out of '22 into early '23 |
| I feel like sentiment has shifted a little bit more negatively from investors on EVs, our auto team is really negative on EVs, just for what it's worth |
| We saw the Android market be very weak in the first half of '23, like everyone |
| So there is some concern that, if the Tier 1s go too far, correct too far - to burning off inventory, they're just going to sow the seeds for another shortage situation in the out years |
| The math would indicate that we're undershipping end demand |
| And over the last couple of quarters, we started to see a little bit of maybe excess inventory at some of the Tier 1s in automotive |
| You saw weakness maybe when others didn't |
| I think the challenge is a lot of the Tier 1s operate on very tight working capital metrics and their challenges were - they were enabled, or couldn't renegotiate their business conditions with the OEMs directly |
| I think the OEMs continue to remember the pain they went through, for a couple of years |
| As you mentioned, we've got a down quarter here in Q1 |
| And you talked about a soft landing |
| And then they have a lot more, what I think are geopolitical risks, both in U.S |
| We took a very cautious look |
| I think you do hear of pricing going down in what we would call second and third-tier foundry quotes |
| It's slowing down a little bit, but it's not going negative |
| But you have a company - one of your competitors has been vocally negative that, of course, automotive will correct, and they were up like 10% year-on-year in Q4, like they're all seeing it? Jeff Palmer I think one thing that Kurt, our CEO has tried to really communicate, is each of our end markets that we participate in are cyclical |
| We took a little bit of a pause in '23, as a result of some of the inventory we talked about |
| Joseph Moore And isn't there an argument, I mean, given how severe the automotive shortages were a couple of years ago that, your customers would continue to operate in a higher inventory, having a safety stock |
| So we didn't pad our margins |
| And the way you're talking about in 2025, a return to maybe a modest downward |
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