Q2 2025 Vishay Intertechnology Inc Earnings Call

Presentation, there will be a question and answer session to ask a question. During your session you will need to press star one one on your telephone you will then hear an automated message advising that your hand is raised to withdraw your question. Please press star one one again, please be advised that today's conference is being recorded.

I would now like to hand, the conference over to the first speaker today, Peter <unk> Investor Relations. Peter go ahead.

Thank you Amber and good morning, and welcome to Vishay Intertechnology second quarter 2025.

Good day, and thank you for standing by. Welcome to the Vishay. Inner technology, quarter 2, 2025 earnings call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session to ask a question during your session. You will need to press star 1, 1 on your telephone. You will then hear an automated message. Advising that your hand is raised

Cool.

I am joined today by Joe May call.

Peter Henrici: Thank you, Amber. Good morning and welcome to Vishay Intertechnology's second quarter 2025 earnings conference call. I am joined today by Joel Smejkal, our president and chief executive officer, and by Dave McConnell, our chief financial officer. This morning, we reported results for our second quarter. A copy of our earnings release is available in the investor relations section of our website at ir.vishay.com. This call is being broadcast live over the web and can be accessed through our website. In addition, today's call is being recorded and will be available by a replay on our website. During the call, we will be referring to a slide presentation, which we also posted at ir.vishay.com. You should be aware that in today's conference call, we will be making certain forward-looking statements that discuss future events and performance.

Residents and Chief Executive Officer, and five days Mcdonnell our Chief Financial Officer.

This morning, we reported results for our second quarter, a copy of our earnings release is available in the Investor Relations section of our website.

Ed.

Our job Vishay Dot com.

This call is being broadcast live over the web and can be accessed through our website.

In addition, today's call is being recorded and will be available via replay on our website.

During the call, we will be referring to a slide presentation, which we also posted.

IR docs reshape dot com.

You should be aware that in today's conference call, we will be making certain forward looking statements.

That discuss future events and performance.

These statements are subject to risks and uncertainties that could cause actual results to differ from the forward looking statements.

For a discussion of factors that could cause results to differ please see today's press release and appreciates Form 10-K.

Peter Henrici: These statements are subject to risks and uncertainties that could cause actual results to differ from the forward-looking statements. For a discussion of factors that could cause results to differ, please see today's press release and Vishay's Form 10-K and Form 10-Q filings with the Securities and Exchange Commission. We are including information in our press release and on the conference call on various GAAP and non-GAAP measures. We have included a full GAAP to non-GAAP reconciliation in our press release, as well as in the presentation posted on ir.vishay.com, which we believe you will find useful when comparing our GAAP and non-GAAP results. We use non-GAAP measures because we believe they provide useful information about the operating performance of our businesses and should be considered by investors in conjunction with GAAP measures. Now, I turn the call over to president and chief executive officer, Joel Smejkal.

Form 10-Q filings with the Securities and Exchange Commission.

We are including information in our press release and on this conference call.

GAAP and non-GAAP measures.

We have included a full GAAP to non-GAAP reconciliation in our press release.

As well as in the presentation posted on the IR Dot Dot com.

Which we believe you will find useful when comparing GAAP and non-GAAP results.

We use non-GAAP measures because we believe they provide useful information about the operating performance of our businesses and should be considered by investors in conjunction with GAAP measures.

As well as in the presentation, posted on ir.com.

Now I turn the call over to President and Chief Executive Officer, Joe May cost.

Thank you Peter.

Good morning, everyone.

Thank you for joining our second quarter 2025 conference call I'll start my remarks, with a review of the second quarter performance and business conditions.

And then turn the call over to Dave who will take you through a review of the second quarter financial results.

Joel Smejkal: Thank you, Peter. Good morning, everyone. Thank you for joining our second quarter 2025 conference call. I'll start my remarks with a review of the second quarter performance and business conditions, and then turn the call over to Dave, who will take you through a review of the second quarter financial results and our guidance for the third quarter of 2025. After that, I'll update you on the strategic levers we are pulling under Vishay 3.0 as we continue to execute our five-year strategic plan, and then we'll be happy to answer any of your questions. For the second quarter, revenue grew sequentially 7% to $762 million, in line with our guidance. We generated revenue growth for both semis and passives, growth in all of our end markets, growth in the distribution and EMS channels, and growth in all regions.

And our guidance for the third quarter of 2025.

After that I'll update you on the strategic levers, we are pulling under <unk> three <unk>.

As we continue to execute our five year strategic plan and then we'll be happy to answer any of your questions.

For the second quarter revenue grew sequentially, 7% to $762 million.

In line with our guidance.

We generated revenue growth for both semis and passives.

Growth in all of our end markets growth in the distribution and EMS channels and growth in all regions.

The promising signals, we saw emerging in the fourth quarter have become more firm the.

The inventory correction cycle is principally behind us.

Industry inventory levels have normalized for passives, while there is still some excess industry inventory in semis.

Joel Smejkal: The promising signals we saw emerging in the fourth quarter have become more firm. The inventory correction cycle is principally behind us. Industry inventory levels have normalized for passives, while there is still some excess industry inventory in semis. Solid order intake during the second quarter reflected continued demand momentum in smart grid infrastructure projects and AI power applications. Overall, book-to-bill was positive at 1.02, with semis slipping slightly due to some customer program adjustments and passives continuing to trend upward. July book-to-bill for semis has bounced back to 1.07. Our decision to invest heavily in capacity expansion between 2023 and 2028 under Vishay 3.0 is positioning us well. Over the past two and a half years, we have invested approximately $775 million to add capacity for high growth, higher profit products.

Solid order intake during the second quarter reflected continued demand momentum in smart grid infrastructure projects and AI power applications.

Overall book to Bill was positive at 1.0 to with semi slipping slightly due to some customer program adjustments and passives continuing to trend upward.

July book to Bill for semis has bounced back to 1.07.

Our decision to invest heavily in capacity expansion between 2023 and 2028 under Boucher three <unk> is positioning us well.

Over the past two and a half years, we have invested approximately $775 million.

To add capacity for high growth higher profit products.

I am pleased to state that today, we have the incremental capacity for nearly all products to capture the early stage of this market upturn.

Assuring our customers of reliable volume as they scale and to satisfy the quick turn demand, we're seeing in AI and generally across all end markets.

Joel Smejkal: I am pleased to state that today we have the incremental capacity for nearly all products to capture the early stage of this market upturn, assuring our customers of reliable volume as they scale and to satisfy the quick-turn demand we're seeing in AI and generally across all end markets. We have also been aggressively working growth initiatives to strengthen customer relationships, re-engage with previously underserved and inactive customers, and develop new customers. Through innovation and subcontractor engagements, our portfolio has expanded to best serve our customers' demand and to more fully leverage the breadth of technologies in our portfolio. We create design opportunities that increase our print position at customers, targeting our 80% of the bill of materials in power application. We also work to advance our silicon carbide strategy.

We have also been aggressively working growth initiatives to strengthen customer relationships.

Reengage with previously underserved and inactive customers.

And develop new customers.

Through innovation and subcontractor engagements our portfolio has expanded.

To best serve our customers demand and to more fully leverage the breadth of technologies in our portfolio.

We create design opportunities that increase our print position of customers targeting our 80% of the bill of materials and power applications.

We also work to advance our silicon carbide strategy.

As a result, we are positioned boucher quite well to support the emerging market up cycle as well is to reinforce our presence to participate in the megatrends of E mobility and sustainability over time.

Joel Smejkal: As a result, we have positioned Vishay quite well to support the emerging market upcycle, as well as to reinforce our presence to participate in the megatrends of e-mobility and sustainability over time. Let's now turn to slide three for a review by end markets. Automotive revenue increased 4% versus the quarter as demand from tier one customers improved on a modest increase in consignment pulls in the Americas and the launch of new ADAS programs in Europe and higher volumes in Asia. Consignment pulls from European customers were mixed, with some of them pulling at normal rates, some at higher rates, and some adjusting their forecasts. Order intake grew in all regions over the course of the quarter.

Let's now turn to slide three for a review by end markets.

Automotive revenue increased.

4% versus the quarter as demand from tier one customers improved on a modest increase in consignment pulls in the Americas.

And the launch of new Adas programs in Europe, and higher volumes in Asia.

Consignment pulls from European customers were mixed.

With some of them pulling at normal rates, some at higher rates and some adjusting their forecast.

Order intake grew in all regions over the course of the quarter.

Automotive electrification continues to be a major focus of design activity in the second quarter for battery electric vehicles and hybrid powertrain.

Along with smart cockpits, Adas programs traction Inverters and onboard Chargers.

Joel Smejkal: Automotive electrification continues to be a major focus of design activity in the second quarter for battery electric vehicles and hybrid powertrains, along with smart cockpits, ADAS programs, traction inverters, and onboard chargers. ICE powertrain designs, those activities do still continue. Revenue from the industrial segment increased 9% from the first quarter. The normalization of customer and channel inventories helped this segment turn to more of a forward-looking demand planning approach. Also, industrialists are being driven by strengthening demand for smart grid infrastructure, multi-year projects in all regions. Higher power requirements to support AI chip production and data center projects as AI adoption continues to fuel electricity requirements. For example, we received multiple large orders for the high voltage DC power transmission programs during this quarter. We expect to win additional smart grid projects as customers address electricity demands in AI data centers. Excuse me.

Ice powertrain designs those activities do still continue.

Revenue from the industrial segment increased 9% from the first quarter.

The normalization of customer and channel inventories helped this segment turn to more of a forward looking demand planning approach.

Also industrial is being driven by strengthening demand for smart grid infrastructure multi year projects in all regions.

Higher power requirements to support AI chip production.

And data center projects as AI adoption continues to fuel electricity requirements.

For example, we received multiple large orders for the high voltage DC power transmission programs during this quarter.

We expect to win additional smart grid projects as customers address electricity demands and AI data centers.

Excuse me.

In the Americas orders steadily increased over the quarter with lead times in the eight to 12 week range.

Giving us a higher percentage of turns business, we haven't seen for many quarters.

In Europe order intake for smart grid infrastructure projects more than double in.

Joel Smejkal: In the Americas, orders steadily increased over the quarter, with lead times in the eight to 12-week range, giving us a higher percentage of turns business we haven't seen for many quarters. In Europe, order intake for smart grid infrastructure projects more than doubled. In Asia, governments in China and India are also accelerating smart grid infrastructure spending. In parallel, demand for, excuse me, in parallel, demand for factory automation projects and other industrial applications remains flat in the Americas and Europe as companies are slow to invest in capital projects. New design activity remains focused on energy storage, energy conversion, high voltage DC smart grid infrastructure, uninterruptible power supplies, and next generation AI power structures. In aerospace defense, revenue increased 5% quarter over quarter on improved demand for military applications, where while commercial aerospace declined due to ongoing mechanical parts supply issues in Europe.

In Asia governments in China, and India are also accelerating smart grid infrastructure spending.

In parallel and demand for <unk>.

Excuse me <unk>.

In parallel demand for factory automation projects and other industrial applications remained flat in the Americas and Europe as companies are slow to invest in capital projects.

New design activity remained focus on energy storage energy conversion.

High voltage DC smart grid infrastructure.

Uninterruptible power supplies and next generation AI power structures.

In aerospace defense revenue increased 5% quarter over quarter on improved demand for military applications, where while commercial aerospace declined due to ongoing mechanical parts supply issues in Europe.

Book to Bill stayed above one in the Americas.

With orders improving throughout the quarter, including orders for applications related to low Earth orbit satellites.

At one customer we are supplying over 30% of the bill of materials.

Joel Smejkal: Book-to-bill stayed above one in the Americas, with orders improving throughout the quarter, including orders for applications related to low Earth orbit satellites. At one customer, we are supplying over 30% of the bill of materials. Distributors in Europe also report a book-to-bill rates above one for aerospace defense. Design activity remains focused on Department of Defense communication programs and low Earth orbit satellite constellations, next generation warfare programs, including drones and missiles. In the medical end markets, revenue grew 4%, reflecting stronger demand in implantables and measurement equipment. In the Americas, we are seeing the increase and success of our strategy to cross-sell all Vishay technologies to customers who have purchased only one or two products from us in the past years. Design activity remains focused on a variety of applications, including defibrillators, surgical assistant systems, drug delivery, diagnostic equipment for patient monitoring, and hearing aid implants.

Distributors in Europe also report a book to bill rates above one.

For aerospace defense.

Design activity remained focused on department of defense communication programs.

And low Earth orbit satellite constellation.

Next generation warfare programs, including drones and missiles.

In the medical end markets revenue grew 4%, reflecting stronger demand in implantables and measurement equipment and.

In the Americas, we are seeing the increase and success of our strategy to cross sell all of the shale technologies to customers, who have purchased only one or two products from us.

In the past years.

Design activity remained focused on a variety of applications, including <unk>.

Surgical assistant systems drug delivery.

Diagnostic equipment for patient monitoring and hearing aid implants.

Revenue from the other segments, including computer consumer and Telecom end markets was up 9% for the sixth consecutive quarter of sequential growth on escalating demand related to AI servers and server power in Asia.

Joel Smejkal: Revenue from the other segments, including computer, consumer, and telecom end markets, was up 9% for the sixth consecutive quarter of sequential growth on escalating demand related to AI servers and server power in Asia. Consistent with the past two quarters, AI remained a quick turns business, with Asia CMs frequently placing spot orders. Order intake increased anywhere between 20 to 30%, depending on the country. The main areas of design activity for computing and AI applications continue to be around power management. We continue to design in a greater percentage of components on the board, expanding our bill of material position to both semis and passives, which fits our profitability and capability to support over 80% of the components needed in a power application. In addition, we expanded the AI customer count and continued design activity with AI optical modules and graphics cards. Let's move on to slide four.

Consistent with the past two quarters AI remains a quick turns business with Asia, CMS frequently placing spot orders.

Order intake increased anywhere between 20% to 30% depending on the country.

The main areas of design activity for computing and AI applications continue to be around power management.

We continue to design in a greater percentage of components on the board.

Expanding our bill of material position to both semis, and passives, which fits our profit ability and capability to support over 80% of the components needed in a power application.

In addition, we expanded the AI customer counts and continued design activity with AI optical modules and graphics cards.

Let's move on to slide four.

Moving on to the revenue by channel from the second quarter, you can see the distribution revenue grew again quarter over quarter and was the strongest contributor to total revenue growth for the quarter.

OEM revenue was essentially flat compared to the first quarter with volume up in all regions, including a recovery in Asia following a seasonal soft first quarter.

Joel Smejkal: Moving on to the revenue by channel from the second quarter, you can see that distribution revenue grew again quarter over quarter and was the strongest contributor to total revenue growth for the quarter. OEM revenue was essentially flat compared to the first quarter, with volume up in all regions, including a recovery in Asia following a seasonal soft first quarter, offset by a bit lower ASPs. Order intake by industrial OEMs in each region remained positive as we move past the inventory correction cycle and see increased demand for industrial power supplies and improved order intake from automotive customers. EMS revenue increased 13% versus the first quarter on increased AI and industrial demand and many short-term orders in Asia related to customers who wanted to ship during the tariff pause.

<unk> offset by <unk>.

Bit lower Asp's.

Order intake by industrial Oems in each region remained positive as we move past the inventory correction cycle and see increased demand for industrial power supplies and improved order intake from automotive customers.

Dms revenue increased 13% versus the first quarter on increased AI and industrial demand.

And many short term orders in Asia related to customers, who wanted to ship.

During the tariff pause.

In Europe, some regional EMS.

Work to rightsize their inventory levels, which they hold for aerospace and defense customers. This is expected to clear by year end.

Distribution revenue grew 11% this.

Joel Smejkal: In Europe, some regional EMS work to right size their inventory levels, which they hold for aerospace and defense customers. This is expected to clear by year end. Distribution revenue grew 11%. This reflects the success of our SKU count expansion to sell more Vishay products by having them on the shelf, which intensifies customer engagement. Our total distributor inventory reached 27 weeks at the end of Q4 and has been reduced now to 23 weeks for the second quarter as more Vishay part numbers are being consumed at faster rates. POS increased in each region and worldwide 9%. In the Americas, POS was at the highest level since the second quarter of 2023 as end customer demand recovers due to new program launches, expanded backlogs, and normalized inventory levels.

This reflects the success of our SKU count expansion to sell more of a shape products by having them on the shelf, which intensifies customer engagement.

Our total distributor inventory reached 27 weeks at the end of Q4.

And has been reduced now to 23 weeks for the second quarter as more of a shape part numbers are being consumed at faster rates.

POS increased in each region.

This reflects the success of our SKU count expansion to sell more Vishay products by having them on the Shelf which intensifies customer engagement.

And worldwide 9%.

In the Americas Pos was at the highest level since the second quarter of 2023 as.

Our total distributor inventory reached 27 weeks at the end of Q4.

As end customer demand recovers due to new program launches expanded backlogs and normalized inventory levels.

And has been reduced now, to 23 weeks for the second quarter, as more of a part, numbers are being consumed at faster rate.

PS increased in each region.

Poa worldwide grew at a faster rate continued turns business in each region. Following a 4% sequential increase in the first quarter.

in the Americas, POS was at the highest level since the second quarter of 2023

Turning to slide five in terms of the geographical mix revenue grew in each region led by Asia, which increased 12% on a rebound from the seasonally soft first quarter.

Joel Smejkal: POA worldwide grew at a faster rate on continued turns business in each region, following a 4% sequential increase in the first quarter. Turning to slide five, in terms of the geographical mix, revenue grew in each region led by Asia, which increased 12% on a rebound from the seasonally soft first quarter on strong volume associated with AI power requirements, smart grid infrastructure projects, and also automotive. In the Americas, improved automotive and industrial demand resulted in a 7% increase. Europe was essentially flat after having fewer workdays in Q2 and some inventory overcorrections. Before turning the call over to Dave, I'd like to thank the Vishay employees for their hard work and contributions to transforming Vishay to 3.0. Our level of service has improved. Vishay employees put the customer first every day and embrace a business-minded approach in all that they do.

As in customer demand, recovers due to new program, launches expanded, backlogs, and normalized inventory levels.

On strong volume associated with AI power requirements smart grid infrastructure projects and also automotive.

POA worldwide grew at a faster rate on continued turns business in each region, following a 4% sequential increase in the first quarter.

In the Americas improved automotive and industrial demand resulted in a 7% increase.

Turning to slide 5 in terms of the geographical mix.

Europe was essentially flat after having fewer workdays in Q2 and some inventory over correction.

Revenue grew in each region. Led by Asia, which increased 12% on a rebound from the seasonally soft first quarter.

on strong volume associated with AI, power requirements, smart grid, infrastructure projects, and also Automotive

Before turning the call over to Dave I'd like to thank the vishay employees for their hard work and contributions to transforming vishay to three point out.

in the Americas.

Improved automotive and Industrial mans resulted in a 7% increase.

Our level of service has improved vishay.

Vishay employees put the customer first everyday and embraced our business minded approach and all that they do.

Europe was essentially flat after having fewer work days in Q2 and some inventory over Corrections.

Their continued commitment to advancing the business towards the long term strategy.

Before turning the call over to Dave, I'd like to thank the bisha employees.

For their hard work and contributions to transforming Vishay to 3.0.

And financial goals is recognized and appreciated.

Our level of service has improved.

I'll now turn the call over to Dave where he will review the financial results of Q2.

Joel Smejkal: Their continued commitment to advancing the business toward the long-term strategy and financial goals is recognized and appreciated. I'll now turn the call over to Dave, where he will review the financial results of Q2.

Buche employees, put the customer first every day and embrace a business-minded approach in all that they do.

Yes.

Thank you Joe good morning, everyone.

Let's start our review of the second quarter financial results with the highlights on slide six.

Second quarter revenues were $762 million up 7% compared to the first quarter, reflecting a 4% increase in volume and a 3% positive foreign currency impact related mostly to the euro.

Their continued commitment to advancing the business toward the long-term strategy and financial goals is recognized and appreciated.

Dave McConnell: Thank you, Joel. Good morning, everyone. Let's start our review of the second quarter financial results with the highlights on slide six. Second quarter revenues were 762 million, up 7% compared to the first quarter, reflecting a 4% increase in volume and a 3% positive foreign currency impact related mostly to the euro. Average selling prices, including tariff adders, were flat versus the first quarter. All reportable business segments had higher revenues in the first quarter, driven mostly by volume. Compared to the second quarter of 2024, revenues increased 3%, reflecting a 3% increase in volume, 2% positive foreign currency impact related mostly to the euro. This was partially offset with a 2% reduction in ASPs, including tariff adders. Book-to-bill for the quarter was 1.02, the third quarter in a row with a book-to-bill over one. Book-to-bill was 0.98 for semis and 1.06 for passives.

I'll now turn the call over to Dave, where he will review the financial results of Q2

Thank you Joe. Good morning, everyone.

Average selling prices, including tariff adders or flat versus the first quarter.

Let's start our review of the second quarter Financial results with the highlights on slide 6.

All reportable business segments had higher revenues in the first quarter driven mostly by volume.

Compared to the second quarter 2024 revenues increased 3%, reflecting a 3% increase in volume, 2% positive foreign currency impact related mostly to the euro.

Second quarter, revenues were 762 million up 7% compared to the first quarter reflecting a 4%, increase in volume. And a 3%, positive, foreign currency impact related, mostly to the euro

Average selling prices including tariff adders or flat versus the first quarter.

This was partially offset with a 2% reduction in asps, including tariff matters.

Portable business segments had higher revenues in the first quarter driven, mostly by volume.

Book to Bill for the quarter was 1.0 to a third quarter in a row with a book to bill over one.

Compared to the second quarter 2024, revenues increased 3%, reflecting a 3%, increase in volume.

Book to Bill was <unk> 98 for semi is at one six for passengers.

2% positive, foreign currency impact related, mostly to the euro.

Backlog in dollars increased to $1 2 billion and is now at $4 six months.

This was partially offset with a 2% reduction in asps including tariff headers.

Moving on to the next slide presenting the income statement highlights.

Gross profit was $149 million, resulting in a gross margin of 19, 5%.

Booked a bill for the quarter was 1.02 the third quarter in a row with a booked, a bill over 1.

Dave McConnell: Backlog in dollars increased to 1.2 billion and is now at 4.6 months. Moving on to the next slide, presenting the income statement highlights. Gross profit was 149 million, resulting in a gross margin of 19.5% at the high end of our guidance. The increase from quarter one was primarily due to additional volume. The negative impact from Newport was approximately 160 basis points, slightly better than our guidance. Depreciation expense was 53 million, approximately in line with our guidance, considering exchange rate impacts, and up 2 million over quarter one. SG&A expenses were 127 million, including an $11 million benefit recognized upon the one-time favorable resolution of an outstanding matter. Excluding this one-time benefit, SG&A expenses would have been in the range of our guidance for the quarter, up from 135 million in quarter one, mostly due to negative exchange rate impacts.

To bill was 0.98% semis and 1.06 for passes.

At the high end of our guidance increase from quarter, one was primarily due to additional volume.

Backlog in dollars increased to 1.2 billion and is now at 4.6 months.

The negative impact from Newport was approximately 160 basis points slightly better than our guidance.

Moving on to the next slide, presenting. The income statement highlights.

Depreciation expense was $53 million approximately in line with our guidance considering the exchange rate impacts and up 2 million over quarter one.

Gross profit was 149 million. Resulting in a gross margin of 19.5% at the high end of our Guidance. The increase from quarter to 1 was primarily due to additional volume.

SG&A expenses were 127 million <unk>.

Including an $11 million benefit recognized upon the onetime favorable resolution of an outstanding matter.

The negative impact from Newport was approximately 160 basis points, slightly better than our guidance.

<unk>. This one time benefit SG&A expenses would have been in the range of our guidance for the quarter.

Depreciation expense was approximately $53 million, in line with our guidance considering exchange rate impacts, and up $2 million over Q1.

From a $135 million in quarter, one mostly due to negative exchange rate impacts.

Sgna expenses were 127 million.

GAAP operating margin was two 9% compared to <unk>, 1% in the first quarter and five 1% in the second quarter of 'twenty four.

Including an 11 million benefit recognized upon the 1-time favorable resolution of an outstanding matter.

Excluding this 1-time benefit sgna expenses. Would have been in the range of our guidance for the quarter.

Adjusted operating margin was one 4%.

Dave McConnell: GAAP operating margin was 2.9% compared to 0.1% in the first quarter and 5.1% in the second quarter of '24. Adjusted operating margin was 1.4% in the second quarter, excluding the one-time item. There were no GAAP adjustments in Q1 '25 or Q2 of '24. EBITDA for the quarter was 75 million for an EBITDA margin of 9.8%. Adjusted EBITDA for the quarter was 64 million for an adjusted EBITDA margin of 8.3%, up from 7.6% in the first quarter. Our GAAP effective tax rate is not meaningful at these low levels of pre-tax income or loss, as relatively small items such as foreign currency and repatriation taxes have a disproportionate impact on the effective tax rate. As profitability returns, we expect a normalized effective tax rate closer to our historical guidance.

up from 135 million in quarter, 1 mostly due to negative exchange rate impacts

In the second quarter, excluding the onetime item.

There were no GAAP adjustments in Q1 25 for Q2 of 'twenty four.

EBITDA for the quarter was $75 million for an EBITDA margin of nine 8%.

Gap. Operating margin was 2.9% compared to 0.1% in the first quarter and 5.1% in the second quarter of 24.

Adjusted EBITDA for the quarter was $64 million for an adjusted EBITDA margin of eight 3%.

Adjusted operating margin was 1.4%.

In the second quarter, excluding the 1-time item.

Up from seven 6% in the first quarter.

There were no Gap adjustments in q125, or Q2 of 24.

Okay.

Yeah.

Our GAAP effective tax rate is not meaningful at these low levels of pre tax income or loss as.

Ibida for the quarter was 75 million for an ibida margin of 9.8%.

As relatively small items such as foreign currency.

Adjusted Eva. After the quarter was 64 million for an adjusted. Eva out margin of 8.3%.

And repatriation taxes have a disproportionate impact on the effective tax rate.

Up from 7.6% in the first quarter.

As profitability returns, we expect a normalized effective tax rate closer to our historical guidance.

Our Gap effective tax rate is not meaningful that these low levels of pre-tax income or loss.

GAAP EPS was <unk> <unk> per share compared to a loss of <unk> <unk> per share in the first quarter and earnings per share of <unk> 17 in the second quarter of 'twenty four.

As relatively small items such as Farm currency.

And repatriation taxes, have a disproportionate impact on the effective tax rate.

Adjusted loss per share was <unk> <unk> for the second quarter of 'twenty five.

Dave McConnell: GAAP EPS was one cent per share compared to a loss of three cents per share in the first quarter and earnings per share of 17 cents in the second quarter of '24. Adjusted loss per share was seven cents for the second quarter of '25. Proceeding to slide eight. For ease of reference, the presentation includes a table illustrating the revenue, gross margin, and book-to-bill ratios for each of our reportable business segments. Of note, for the second quarter, the results for Newport continue to be reported primarily in mock sets, impacting that segment's gross margin by approximately 840 bips compared to 1,000 bips for quarter one. Turning to slide nine and our cash conversion cycle metrics, our DSO was stable at 53 days, while our DPO decreased to 32 days from 34 days in the first quarter. Inventory increased to 755 million, mostly due to exchange rate impacts.

As profitability returns we expect and normalize effective tax rate closer to our historical guidance.

Yes.

We're seeing a slide eight.

For ease of reference the presentation includes a table illustrating the revenue gross margin and book to Bill ratios for each of our reportable business segments.

Gaap EPS was 1 cent per share compared to a loss of 3 cents per share in the first quarter and earnings per share of 17 cents in the second quarter of 24.

Of note for the second quarter the results for Newport continue to be reported primarily in mindsets.

Adjusted loss per share with 7 cents for the second quarter of 25.

Impacting that segment's gross margin by approximately 840 bps compared to 1000 bps per quarter one.

Preceding a slide 8.

Turning to slide nine and our cash conversion cycle metrics. Our DSO was stable at 53 days, while our GPO decreased to 32 days from 34 days in the first quarter.

For ease of reference, the presentation includes a table illustrating, the revenue, gross margin and book to Bill ratios for each of our reportable business segments.

Of note for the second quarter of the results for Newport continue to be reported primarily in mosfets.

Inventory increased to $755 million, mostly due to exchange rate, mostly due to exchange rate impacts.

Impacting that segment's gross margin by approximately 840 bits, compared to a 1000 bits for quarter 1.

The inventory days outstanding decreased slightly to 190 days.

Turning a slide 9 and our cash conversion cycle metrics.

Total cash conversion cycle for the second quarter is 130 days.

Our DSO was stable at 53 days while our DPO decreased to 32 days from 34 days in the first quarter.

Continuing to slide 10, you can see we used $9 million of operating cash in the second quarter.

Dave McConnell: The inventory days outstanding decreased slightly to 109 days. Total cash conversion cycle for the second quarter is 130 days. Continuing to slide 10, you can see we used $9 million of operating cash for the second quarter. The quarter included 56 million of tax payments related to cash repatriation and the last installment of the US transition tax. Total CapEx for the quarter was 65 million, including 53 million designated for capacity expansion projects. On a trailing 12-month basis, capital intensity was 11.3% compared to 10.5% for the same period last year. Consistent with our strategic plan that we shared with you last year, we continue to deploy cash for capacity expansion projects. Due to these investments and the aforementioned taxes paid, free cash flow for the quarter was a negative 73 million compared to negative 45 million in the first quarter.

Quarter included $56 million of tax payments related to cash repatriation and the last installment of the U S transition tax.

inventory, increase to 755 million, mostly due to exchange rate mostly due to exchange rate impacts

The inventory days outstanding decreased slightly to 109 days.

Total capex for the quarter was $65 million.

Total cash conversion cycle for the second quarter is 130 days.

Turning $53 million designated for capacity expansion projects.

On a trailing 12 month basis capital intensity was 11, 3% compared to 10, 5% for the same period last year.

Continuing to slide 10. You can see we use 9 million of operating cash for the second quarter. The quarter included 56 million of tax payments related to cash repatriation and the last installment of the US transition tax

Consistent with our strategic plan that we shared with you last year, we continued to deploy cash for capacity expansion projects.

total capex for the quarter was 65 million, including 53 million designated for capacity expansion projects.

Due to these investments and the aforementioned taxes paid free cash flow for the quarter was a negative $73 million compared to negative $45 million in the first quarter.

On a trailing 12-month basis. Capital intensity was 11.3% compared to 10.5% for the same period last year.

Stockholder returns for the second quarter consists of consistent of our $13 $6 million quarterly dividend we.

consistent with our strategic plan that we shared with you last year, we continue to deploy cash for capacity expansion projects,

We did not repurchase any shares in the quarter.

The remaining $42 million of our 2025 convertible notes matured in the quarter, we funded the settlement with a cash draw on our revolver.

Dave McConnell: Stockholder returns for the second quarter consisted of our $13.6 million quarterly dividend. We did not repurchase any shares in the quarter. The remaining 42 million of our 2025 convertible notes matured in the quarter. We funded the settlement with a cash draw on our revolver. At the end of the quarter, our global cash and short-term investment balance was 479 million, and we are in a net borrowing position in the US with 185 million currently outstanding on our revolver. As previously noted, we are required to fund current dividends, share repurchases, principal, and interest payments using cash on hand in the US, and we are using our US-based liquidity to fund our Newport expansion and other strategic investments. To that end, during the quarter, we repatriated 66 million of accumulated earnings net of taxes from Israel to the US, primarily to fund the Newport expansion.

Due to these Investments and the aforementioned taxes, paid free cash flow for the quarter. Was a -73 million compared to -45 million in the first quarter.

At the end of the quarter, our global cash and short term investment balance was $479 million and we are in a net borrowing position in the U S. With 185 million currently outstanding on our revolver.

Consists of consistent of our 13.6 million, quarterly dividend.

We did not repurchase. Any shares in the quarter?

As previously noted we are required to fund current dividends share repurchases principal and interest payments using cash on hand in the U S. And we are using our U S based liquidity to fund, our Newport expansion and other strategic investments.

The remaining 42 million of our 2025. Convertible notes. Matured in the quarter, we funded the settlement with a cash draw on our revolver.

Yes.

To that end during the quarter, we repatriated $66 million of accumulated earnings net of taxes from Israel to the U S primarily to fund the Newport expansion.

At the end of the quarter, our global cash and short-term investment balance was 479 million and we are in a net borrowing position in the US with 185 million currently outstanding on our revolver.

We have $275 million accessible on our revolving credit facilities at the current EBITDA level, we expect to continue to draw on our revolver to fund our U S cash needs.

As previously noted, we are required to find current dividends, share repurchases principal and interest payments using cash on hand in the US and we are using our us-based liquidity, to fund our Newport expansion, and other strategic Investments.

Okay moving on to the guidance.

For the third quarter 2025 revenues are expected to be $775 million.

Dave McConnell: We have 275 million accessible on our revolving credit facilities at the current EBITDA level. We expect to continue to draw on our revolver to fund our US cash needs. Okay, moving on to the guidance. For the third quarter 2025, revenues are expected to be 775 million plus or minus 20 million, representing a 2% volume increase and reflecting some seasonality in Europe. Gross margin is expected to be in the range of 19.7% plus or minus 50 basis points, inclusive of tariff impacts and also expected higher input costs. Newport is expected to have an approximate 160 to 185 basis point drag on the margin in the third quarter. As we discussed last quarter, we are generally passing through additional tariff costs to customers. Thus, tariff adders increase our revenues without impact on gross profit.

To that end, during the quarter, we repatriated $666 million of accumulated earnings, net of taxes, from Israel to the U.S. primarily to fund the Newport expansion.

Plus or minus $20 million, representing a 2% volume increase and reflecting some seasonality in Europe.

Gross margin is expected to be in the range of 19, 7% plus or minus 50 basis points inclusive inclusive of tariff impacts and also expected higher input costs.

We have 275 million accessible on our revolving credit facilities at the current IBA level, we expect to continue to draw on our revolver to fund, our us cash needs.

Okay, moving on to the guidance.

Newport is expected to have an approximate 160 to 185 basis point drag on the margin in the third quarter.

So the third quarter 2025 revenues are expected to be 775 million plus or minus 20 million representing a 2%, volume increase and reflecting some seasonality in Europe.

As we discussed last quarter, we are generally passing through additional tariff cost to customers. Thus.

Thus tariff adder has increased our revenues.

Gross margin is expected to be in the range of 19.7%, plus or minus 50 basis points. Inclusive inclusive of tariff impacts and also expected higher input costs.

Without impact on gross profit.

The impacts of tariffs are generally limited and incorporated into our guidance for the third quarter.

Newport is expected to have an approximate 160 to 185 basis point drag on the margin in the third quarter.

Depreciation expense is expected to be approximately $54 million for the third quarter and $212 million for the full year.

As we discussed last quarter, we are generally passing through additional tariff costs to customers.

Dave McConnell: The impacts of tariffs are generally limited and incorporated into our guidance for the third quarter. Depreciation expense is expected to be approximately 54 million for the third quarter and 212 million for the full year. SG&A expenses are expected to be 138 million plus or minus 2 million for the quarter. SG&A expenses for the full year are expected to be between 540 and 560 million, excluding the one-time benefit in Q2. Our GAAP effective tax rate is not meaningful at low levels of pre-tax income and loss. As profitability returns, we would expect a normalized effective tax rate closer to our historical guidance of 30 to 32%. And finally, our stockholder return policy calls for us to return at least 70% of our free cash to stockholders in the form of dividends and stock repurchases.

Tariff adders increase our revenues.

SG&A expenses are expected to be $138 million, plus or minus $2 million for the quarter.

Without impact on gross profit.

SG&A expenses for the full year are expected to be between $5 $40 million to $560 million, excluding the onetime benefit in Q2.

The impacts of tariffs are generally limited and incorporated into our guidance for the third quarter.

Appreciation expense.

Our GAAP effective tax rate is not meaningful at low levels of pretax income and loss as profitability returns, we would expect our normalized effective tax rate closer to our historical guidance of 30% to 32%.

Is expected to be approximately 54 million for the third quarter and 212 million for the full year.

Sgna expenses are expected to be 138 million plus or minus 2 million for the quarter.

And finally, our stockholder return policy calls for us to return at least 70% of our free cash to stockholders in the form of dividends and stock repurchases.

Sgna expenses for the full year are expected to be between 5.40 and 560 million. Excluding the 1-time benefit in Q2,

For 2025, we have once again, we once again expect negative free cash flow due to our capacity expansion plans for.

Our Gap effective tax rates, not meaningful at low levels of pre-tax income and loss. As profitability returns, we would expect a normalized effective tax rate closer to our historical guidance of 30 to 32%.

For 2025, we expect to maintain our dividend and Opportunistically repurchase shares based on U S available liquidity in line with this policy.

and finally, our stockholder return policy calls for us to return at least 70% of our free cash to

Dave McConnell: For 2025, we once again expect negative free cash flow due to our capacity expansion plans. For 2025, we expect to maintain our dividend and opportunistically repurchase shares based on US available liquidity in line with this policy. Now I'll turn the call back to Joel.

Now I'll turn the call back to Joe.

Stockholders in the form of dividends and stock repurchases.

Alright, Thank you Dave.

Let's turn to slide 12 for an update on the strategic levers we're pulling.

For 20125, we have once again we once again, expect negative free cash flow due to our capacity expansion plans.

As we execute our five year strategic plan to drive faster revenue growth.

Elevate profitability and enhanced returns on capital.

For 2025 we expect to maintain our dividend and opportunistically repurchase shares based on us available liquidity in line with this policy.

Joel Smejkal: All right, thank you, Dave. Let's turn to slide 12 for an update on the strategic levers we are pulling as we execute our five-year strategic plan to drive faster revenue growth, elevate profitability, and enhance returns on capital. For 2025, we plan to spend between 300 million to 350 million, at least 70% of which will be invested in capital expansion projects for our high growth product lines. During the second quarter, we continue to make progress on our semiconductor expansion projects. As our Newport wafer fab, we remain on schedule for silicon carbide pre-production in early 2026. During the second quarter, we completed the installation of all tools except one, which will be installed in the third quarter. For silicon mock sets, we also completed the transfer of three additional technologies and plan to transfer another two technologies in the third quarter.

Now, I'll turn the call back to Joel.

For 2025, we plan to spend between $300 million to $350 million at least 70% of which will be invested in capital expansion projects for our high growth product lines.

All right. Thank you, Dave.

Let's turn to slide 12 for an update on the Strategic levers. We are pulling as we execute our 5-year, strategic plan to drive faster, Revenue growth,

During the second quarter, we continued to make progress on our semiconductor expansion projects.

Elevate profitability and enhance Returns on Capital.

As our Newport wafer fab, we remain on schedule for Silicon carbide preproduction in early 2026 during.

For 2025, we plan to spend between 300 million to 350 million, at least 70% of which will be invested in capital expansion projects.

During the second quarter, we completed the installation of all tools, except one which will be installed in the third quarter for.

For our high growth product lines.

During the second quarter, we continue to make progress on our semiconductor expansion projects.

For Silicon MOSFET. We also completed the transfer of three additional technologies and plan to transfer another two technologies in the third quarter.

As our Newport wafer Fab we remain on schedule for silicon carbide, pre-production and early 2026.

Finally, we released one automotive MOSFET, while additional product qualifications are ongoing.

During the second quarter, we completed the installation of all tools except 1 which will be installed in the third quarter.

Two large tier one customers have audited the facility.

And Newport received excellent scores for the facility and the processes.

Joel Smejkal: Finally, we released one automotive mock set while additional product qualifications are ongoing. Two large tier one customers have audited the facility, and Newport received excellent scores for the facility and the processes. The next customer audit is being scheduled in early Q4. At our foundry partner in Korea, SK Key Foundry, due to a technical issue, release dates have been pushed out one or two quarters. We now plan to release a total of eight technologies in the fourth quarter, four of which are commercial, two are automotive grade, and one, or excuse me, two are ICs. As a result, we now expect to meet our goal of increasing the annualized capacity for mock sets by 12% in the first quarter of 2026. We also expect to increase annualized capacity for our advanced split gate mock sets by 25% to support new automotive and commercial opportunities in 2026.

For silicon mosfets. We also completed the transfer of 3 additional Technologies and plan to transfer another 2 Technologies in the third quarter.

Next customer audit is being scheduled in early Q4.

At our foundry partner in Korea, SK key foundry due to a technical issue release dates have been pushed out one or two quarters. We now plan to release, a total of eight technologies in the fourth quarter for which our commercial to our automotive grade in one excuse me two or <unk>.

Finally, we released one automotive MOSFET, while additional product qualifications are ongoing.

2. Large Tier 1. Customers have audited the facility.

And Newport received excellent scores for the facility and the processes.

The next customer audit is being scheduled in early Q4.

Yes.

At our Foundry partner in Korea, s k key Foundry.

As a result, we now expect to meet our goal of increasing the annualized capacity for MOSFET by 12% in the first quarter of 2026.

Due to a technical issue, release dates have been pushed out 1 or 2 quarters.

We now plan to release a total of 8 Technologies in the fourth quarter.

We also expect to increase annualized capacity for our advanced split gate MOSFET by 25% to support new automotive and commercial opportunities in 2026.

In Taiwan, we continue to advance the automotive qualification process and the volume ramp up for commercial diodes.

As a result, we now expect to meet our goal of increasing the annualized capacity for mosfets by 12%. In the first quarter of 2026.

In turn Italy, the qualification of commercial diodes is on track to be completed in the third quarter and we will expect to begin mass production in the fourth quarter. We also are on track to complete the qualification of the 1200 volt technology in the third quarter and begin mass production in the fourth quarter.

Joel Smejkal: In Taiwan, we continue to advance the automotive qualification process and the volume ramp-up for commercial diodes. In Turin, Italy, the qualification of commercial diodes is on track to be completed in the third quarter, and we will expect to begin mass production in the fourth quarter. We also are on track to complete the qualification of the 1,200-volt technology in the third quarter and begin mass production in the fourth quarter. Now for passive components, at our two facilities in Mexico, in La Laguna and in Juarez, we continue to qualify more commercial part numbers. We are also continuing to work on automotive grade qualifications for the sites. Once the site is up to automotive standards, customers will schedule audits beginning the second half of the year.

We also expect to increase annualized capacity for our Advanced splitgate mosfets by 25% to support new automotive and Commercial opportunities in 2026.

In Taiwan, we continue to advance the automotive qualification process and the volume ramp-up for commercial diets.

Yes.

Now for passive components.

At our two facilities in Mexico in La Laguna and in Juarez.

In turn Italy. The qualification of commercial douds, is on track to be completed in the third quarter. And we will expect to begin mass production in the fourth quarter.

We continue to qualify more commercial part numbers were.

We are also continuing to work on automotive grade qualifications for the sites.

We also are on track to complete the qualification of the 1200 volt, technology in the third quarter. And begin mass production in the fourth quarter.

Once the site is up two automotive standards customers will schedule audits, beginning the second half of the year.

now, for Passive components,

at our 2 facilities in Mexico in La Laguna and in Warz

With respect to our subcontractor initiative.

We continue to qualify more commercial part numbers.

We added another five sub contractors to our roster and qualified more than 8000 part numbers expanding our product portfolio of diodes resistors and inductors.

We are also continuing to work on Automotive grade qualifications for the site.

Joel Smejkal: With respect to our subcontractor initiative, we added another five subcontractors to our roster and qualified more than 8,000 part numbers, expanding our product portfolio of diodes, resistors, and inductors. As a result, we can dedicate more of our capacity to high growth products and broaden our product portfolio to meet customer needs. Turning to innovation and our silicon carbide strategy, during the quarter, we continue to advance towards commercialization of the planner mock sets, the 1,200-volt planner, the 1,700-volt planner, and the 650-volt planner, our 1,200-volt trench mock set technology, and our Gen 4 diodes, 650-volt and 1,200-volt family. We released three more Gen 2 1,200-volt planner mock sets in Q2, bringing the total now to four. By year end, we plan to release an additional 16 Gen 2 1,200-volt mock sets for automotive and industrial applications.

Once the site is up to Automotive, standards customers will schedule audits beginning the second half of the year.

As a result.

We can dedicate more of our capacity to high growth products and broadened our product portfolio to meet customer needs.

With respect to our subcontractor initiative.

Turning to innovation in our silicon carbide strategy during the quarter, we continued to advance towards commercialization of the planner MOSFET.

We added another 5 subtract to our roster and qualified more than 8,000 part numbers.

Expanding our product, portfolio of douds, resistors and inductors.

As a result.

The 200 volt planner, a 1700 volt planner and the 650 volt planner.

Our 200 volt trench MOSFET technology, and our Gen. Four diode 650 volt and 1200 volt family.

We can dedicate more of our capacity to high growth products and broaden our product portfolio to meet customer needs.

We released three more Gen. Two 1200 volt planner MOSFET in Q2, bringing the total now to four.

Turning to Innovation and our silicon carbide strategy during the quarter. We continue to advance towards commercialization of the planner mosfets.

The 1200 volt planner. The 1700 volt planner and the 650 volt planner.

By year end, we plan to release, an additional 16 Gen. Two 200 volt MOSFET for automotive and industrial applications.

Our 1200 volt trench mosfet technology and our Gen 4, diodes, 650 volts, and 1,200 volts family.

We remain on track to release to 1700 volt planner MOSFET and the 650 volt planner MOSFET in the first quarter of 2026.

We released three more Gen 2 1200-volt Planner MOSFETs in Q2, bringing the total now to four.

We are also on track to have samples of the 1200 volt trench available in the third quarter.

Joel Smejkal: We remain on track to release the 1,700-volt planner mock set and the 650-volt planner mock set in the first quarter of 2026. We are also on track to have samples of the 1,200-volt trench available in the third quarter and still plan a market release in the fourth quarter. For silicon carbide diodes, we have fully released the Gen 4 1,200-volt automotive diode and the Gen 4 650-volt. We still plan to release the entire silicon carbide Gen 4 diode family with all current ratings and power packages in the second half of the year. As for our solution selling initiative, we continue to release into catalog distribution reference designs that support common applications for automotive, industrial, and AI computer solutions through our e-mobility lab. Specifically, during the quarter, we released one reference design for 400-volt active discharge in an automotive application.

By year end, we plan to release an additional 16 Gen 2, 1200 volt, mosfets for automotive and Industrial applications.

And still plan a market release in the fourth quarter.

For Silicon carbide diodes, we have fully released the Gen. Four 200 volt automotive diode and the Gen. Four 650 volt.

We remain on track to release the 1700 volt planner mosfet and the 650 volt, planner mosfet in the first quarter of 2026.

We still plan to release the entire silicon carbide Gen four dial diode family with.

We are also on track to have samples of the 1200 volt trench available in the third quarter.

And still plan a market release in the fourth quarter.

With all current ratings and power packages in the second half of the year.

As for our solutions selling initiative, we continue to release into catalog distribution reference designs that support common applications for automotive industrial and AI computer solutions through our E mobility lab.

For silicon carbide douds, we have fully released the Gen 4 1200 volt Automotive diode.

And the Gen 4, 650 volts.

We still plan to release the entire silicon carbide, Gen 4, dial diode family.

With all current ratings and power packages.

In the second half of the year.

Specifically during the quarter, we released one reference design for 400 volt active discharge in an automotive application.

As for our solution selling initiative.

We plan to release, another 11 designs in the third quarter for battery management.

400 volt 800 volt active discharge.

We continue to release into catalog, distribution reference designs that support common applications for automotive industrial and AI Computer Solutions through our e-mobility lab.

And current sensor and voltage sensor applications among others.

Joel Smejkal: We plan to release another 11 designs in the third quarter for battery management, 400-volt, 800-volt active discharge, and current sensor and voltage sensor applications, among others. In closing, let's turn to slide 13. Since the beginning of the year, we have seen some customers giving more visibility on their forward demand. Backlog is building in both semis and passives. With nine weeks left in Q3, shippable backlog is higher than at the same point in Q2. The backlog is building at a faster rate, giving us another signal that the market appears to be turning and we're making sure we have the right products on the distributor shelves. With market indicators directionally positive, we are preparing for a stronger second half of the year than compared to the first half.

In closing, let's turn to slide 13.

Specifically, during the quarter. We released 1 reference design for 400 volt active discharge in an automotive application.

Since the beginning of the year.

We have seen some customers, giving more visibility on their forward demand backlog is building in both semis and passives.

We plan to release another 11 designs in the third quarter for battery management.

400 volt 800 volt active discharge.

And current sensor and voltage sensor applications among others.

With nine weeks left in Q3 shippable backlog is higher than.

In closing, let's turn to slide 13.

And then at the same point in Q2.

Since the beginning of the year.

The backlog is building at a faster rate, giving us another signal that the market appears to be turning and we're making sure we have the right products on the distributor shelf.

We have seen some customers giving more visibility on their forward demand.

Backlog is building in both semis and passives.

With market indicators Directionally positive we are preparing for a stronger second half of the year than compared to the first half.

With 9 weeks left in Q3 shippable backlog is higher.

than at the same point in Q2,

As the market upturn begins to become more firm.

We work to be ready to meet customer demand.

the backlog is building at a faster rate giving us another signal that the market appears to be turning and we're making sure we have the right products on the distributor shell.

In a much better position to offer competitive lead times.

As the backlog growth.

Joel Smejkal: As the market upturn begins to become more firm, we work to be ready to meet customer demand in a much better position to offer competitive lead times as the backlog grows. Capacity readiness helps us to be a reliable supplier as the customer scales production and we are able to supply more part numbers to them. Capacity readiness allows us to re-engage with inactive customers and regain their trust over time. Capacity readiness also means we are positioned to drive new customer engagement. On the technology front, we're intensifying our efforts to expand mock set capacity and develop new business through many avenues. Internal and external capacity expansions for front-end and back-end production are in place, plus the advancements of silicon carbide as a new product technology for Vishay.

<unk> readiness helps us to be a reliable supplier as the customer scales production and we are able to supply more part numbers to them.

With market indicators directionally positive, we are preparing for a stronger second half of the year compared to the first half.

As the market upturn begins to become more firm.

Capacity readiness allows us to reengage with inactive customers and regain their trust over time.

We work to be ready to meet customer demand.

In a much better position to offer competitive lead times as the backlog grows.

Capacity readiness also means we are positioned to drive new customer engagement.

On the technology front.

Helps us to be a reliable supplier as the customer scales production and we are able to supply more part numbers to them.

We're intensifying our efforts to expand MOSFET capacity and develop new business through many avenues.

Capacity. Red index allows us to re-engage with inactive customers and regain their trust over time.

Internal and external capacity expansions for front end and backend production are in place plus the advancements of silicon carbide as a new product technology for vishay.

Capacity. Readiness also means we are positioned to drive new customer engagement.

On the technology front.

In short we have made great progress to position vishay to participate more fully in all market segments.

Where intensifying our efforts to expand Mazda capacity, and develop new business through many Avenues.

In particular, the higher growth markets of smart grid.

Internal and external capacity expansions for front and back-end production are in place.

AI aerospace defense and hybrid automotive.

Joel Smejkal: In short, we have made great progress to position Vishay to participate more fully in all market segments, in particular the higher growth markets of smart grid, AI, aerospace defense, and hybrid automotive. Amber, we're now ready to open the call up for questions.

Plus, the advancements of silicon carbide as a new product technology for V.

In short.

Amber, we're now ready to open the call up for questions.

Thank you at this time, we will conduct a question and answer session. As a reminder to ask a question you will need to press star one one on your telephone and wait for your name to be announced soon.

We have made great progress to position vichet to participate more fully in all market segments.

in particular, the higher growth, markets of smart grid,

AI Aerospace defense and hybrid Automotive.

Your question. Please press Star one line again, please standby, while we compile the Q&A roster.

Amber: Thank you. At this time, we will conduct the question and answer session. As a reminder, to ask a question, you will need to press star one-one on your telephone and wait for your name to be announced. To withdraw your question, please press star one-one again. Please stand by while we compile the Q&A roster. Our first question comes from Rupalu Bhattacharya of Bank of America. Your line is now open.

Amber. We're now ready to open the call up for questions?

Thank you. At this time. We will conduct the question and answer session.

Our first question comes from <unk> <unk>.

Chara of Bank of America. Your line is now open.

Hi, Thanks for taking my questions.

My first one is on the impact of the new Port Fab.

As a reminder, to ask a question, you will need to press star 1 1 on your telephone and wait for your name to be announced to withdraw your question. Please, press star 1 1, again please, stand by while we compile the Q&A roster.

You had guided 175 to 200 bps of negative impact on gross margin for the second quarter, but the impact was just 160 bps, but then looking at the guide for fiscal <unk> higher at 160 to 185. So if you can dive a little bit into details on what drove the outperformance versus your.

Ruplu Bhattacharya: Hi, thanks for taking my questions. My first one is on the impact of the Newport fab. I think you had guided 175 to 200 bips of negative impact on gross margin for the second quarter, but the impact was just 160 bips. But then looking at the guide for fiscal three Q, it's higher at 160 to 185. So if you can dive a little bit into details on what drove the outperformance versus your expectations for two Q and what is happening again in three Q and how should we think about this impact going forward and when does it normalize?

Our first question comes from RTL bechara of Bank of America. Your line is now open

Patients for <unk>, and what is happening again in <unk> and how should we think about this impact going forward and when does it.

Normalized.

Hydro Blue States. That's a good question, so I think with our guidance the $1 80 to 185, it's lower than we've done in the past you're right. We were $175 to 100 and we came in at 160.

They're working hard on getting the product build wafers and we are moving towards Q3, and Q4 is starting to build inventory and start to ship product. So it's a little unknown. So you want to give ourselves a little bit of a range. Okay. So 160, we were hoping we'd be at the low end of that range.

Dave McConnell: Hi, Rupalu Estates. That's a good question. So I think with our guidance, the 180 to 185, it's lower than we've done in the past year, right? We were 175 to 200 and we came in at 160. They're working hard on getting the product, you know, building wafers, and we're moving towards Q3 and Q4 of starting to build inventory and start to ship product. So it's a little unknown. So we want to give ourselves a little bit of a range. Okay, so 160, we're hoping we'd be at the low end of that range.

Hi, thanks for taking my questions. Uh, my first 1 is on the impact of the Newport Fab. I think you had guided 175 200 bibs of negative impact on gross margin for the second quarter, but the impact was just 160 bibs. But then looking at the guide for fiscal 3Q, it's higher at 160 to 185. So if you can dive a little bit into the details on what drove, the outperformance versus your expectations for 2q, and what is happening again in 3Q, and how should we think about this impact going forward? And when does it, uh, normalize

Hi, Rubble, Estates that's a good question. So I think with with our Guidance the 180 to 185 it's lower than we've done in the past year, right? We were 175 to 200 and we came in at 160

Okay understood.

uh,

Honestly.

Okay, and then can I ask on the <unk>.

<unk> gross margins it looks like they've declined 200 bps sequentially.

What drove that and how should we think about gross margin improvement in that section in that segment going forward.

Ruplu Bhattacharya: Okay, understood.

Dave McConnell: Answer honestly.

They're working hard on getting the product. You know, build Wafers and we're moving towards Q3 and Q4 is starting to build inventory and start to ship product. So it's a little unknown. So we want to give ourselves a little bit of a range. Okay. So 160 we're hoping we'd be at the low end of that range.

Ruplu Bhattacharya: Okay, and then can I ask on the mock set gross margins? It looks like they declined 200 bips sequentially. What drove that and how should we think about gross margin improvement in that section, in that segment going forward?

Okay. Understood the answer, honestly.

Okay.

Okay. So another good question.

During Q2, the mindset segment had some manufacturing.

Yeah.

Inefficiencies that have been corrected in Q3 that will show some improvement. We also have an increase in our ICEE sales Q2, and Q3, which comes at a higher margin for us which will show some improvement.

Dave McConnell: Let me take a look. So Rupalu, another good question. So during Q2, the mock set segment had some manufacturing inefficiencies that have been corrected in Q3 that will show some improvement. We also will have an increase in our IC sales Q2 on Q3, which comes at a higher margin for us, which will show some improvement. We're continuing on working on expanding our AI customer list, which will help with the margin improvement towards quarter four. So right now, the way it stands, we're hoping to exit the year 17 to 18%, excluding Newport on mock sets.

Okay. And then can I ask on the uh, moscat? Gross margins. Looks like they declined, 200 bibs sequentially. Uh what drove that and how should we think about gross margin Improvement in that section in that section going forward?

Let me take a look.

so, another good question, so

We're continuing on working on expanding our AI customer list, which will help.

don't want Q2 the mindset segment had some manufacturing uh,

With the margin improvement towards quarter four.

So.

Right now the way it stands we're hoping to exit the year, 17% to 18% excluding Newport on MOSFET.

Inefficiencies that have been corrected in Q3 will show some improvement. We also will have an increase in our IC sales, Q2 to Q3, which comes at a higher margin for us and will show you some improvement.

uh,

Okay. Okay. That's helpful.

So Dave maybe I'll go to <unk> with you let me ask you.

we'll continue on working on expanding our AI customer list, which will help.

Another question on U S tariff impact I think on the call you said that it will be neutral but.

If I look at the last quarter slides you had a slide where you said passive components can have up to 170%.

Ruplu Bhattacharya: Okay, okay, that's helpful. So Dave, maybe I'll go three for three with you. Let me ask you another question on US tariff impact. I think on the call you said that it'll be neutral, but if you know, if I look at the last quarter slides, you had a slide where you said passive components can have up to 170% tariff and semis manufactured in China can have up to 70%. So can you talk about the mechanics of this? Like how much of your product line is packaged in China and how should we think about like how much of that comes into the US and how how is the impact really on tariffs on the P&L?

With the margin improvement towards Quarter 4, so we're right now the way it stands, we're hoping to exit the year at 17% to 18%, including Newport on MOSFETs.

In semi it's manufactured in China can have up to 70%. So can you talk about the mechanics of this like how much of your product line is packaged in China and how should we think about like how much of that comes into the U S and how.

Is the impact really.

Carlos on the P&L.

Okay.

Hi, Robert It's Joel I'll take this one as far as the product percent that is manufactured in China and it comes back to the U S. In Q1, it was less than 4%.

And we see about the same.

Percentage in Q2 and Q3.

Joel Smejkal: Okay, hi, Rupalu, this is Joel. I'll take this one. As far as the product percent that is manufactured in China and comes back to the US, in Q1 it was less than 4% and we see about the same percentage in Q2 and Q3. It's a small percent. Semiconductors and passives are similar, but it's a small percent of our overall revenue that comes back to the US that's manufactured in China.

Okay, okay, that's helpful. Uh, so Dave, maybe I'll go 3 for 3 with you. Let me ask you the, another question on us. Tariff impact. I think on the call, you said that, it'll be neutral. But if um, you know, if I look at the last quarter slides, you had a slide where you said, passive components can have up to 170% tariff, and semis can manufactured in China can have up to 70%. So can you talk about the mechanics of this, like, how much of your product line is packaged in China? And how should we think about like, uh, how much of that comes into the US? And how, uh, how, how is the impact really on, on of tariffs, on the piano?

It's a small percent semiconductors and passives are similar but it's a small percent of our overall revenue that comes back to the U S. It's manufactured in China.

Okay, alright, thanks for all the details let me ask you one final question and then I'll pass on the line.

Hi. This is Joel. I'll take this 1 as far as the product percent. That is manufactured in China and comes back to the US in q1, it was less than 4% and we see about the same.

percentage in Q2 and Q3

Joel in this environment, how are you thinking about the possibility of inorganic growth.

And if you were to think about then would that be in the passive side or active side and what are some of the things that would be attractive. Thank you. Okay.

Ruplu Bhattacharya: Okay, all right, thanks for all the details. Let me ask you one final question and then I'll pass on the line. Joel, in this environment, how are you thinking about the possibility of inorganic growth, M&A? And if you were to think about that, would that be in the passive side or active side and what are some of the things that would be attractive? Thank you.

Of our overall Revenue that comes back to the US that's manufactured in China.

We always keep our eyes out for M&A opportunities.

Semiconductor side for sure.

Something we look at we look at wave.

Ways to increase our presence at customers so semis for sure.

Joel Smejkal: Okay, we always keep our eyes out for M&A opportunities. Semiconductor side for sure is something we look at. We look at ways to increase our presence at customers, so semis for sure. Passives recently, we had the acquisition of a small inrush current limiting company, Amatherm. We brought them on board because it did fill a gap in our portfolio and that is developing. We also look at other passives, which could be vertical. They could be vertical acquisitions to help us with manufacturing materials or it could be with customers. So we do keep our eyes open. We haven't moved away from that. I think we've done a good number of acquisitions in the first two and a half years of Vishay 3.0 and we continue to have that as a strategy.

It was recently, we had the acquisition of a small.

Okay. All right. Thanks for all the details. Let me ask you 1, final question. And then I'll pass on the line, uh, Joel in this environment. How are you thinking about the possibility of inorganic growth m&a? And and if, if you were to think about that, would that be in the passive side or active side? And what are some of the, the things that that would be attractive. Thank you. Okay. We uh, we always keep our eyes out for m&a opportunities.

In Russia current limiting company <unk>, we brought them onboard because it did fill a gap in our portfolio and that is developing we also look at other passives, which could be vertical there could be vertical acquisitions to help us with manufacturing materials or it could be with customers. So we do keep our eyes.

Uh, semiconductor side for sure. Is, uh, something we look at we look at, uh, ways to increase our presence at customer. So, semis for sure, passives recently, we had the acquisition of a small

We haven't moved away from that I think we've done a good the number of acquisitions in the first two and a half years of Boucher <unk> III <unk> and we continue to have that as a strategy.

Okay. Thank you for all the details.

Thank you have a good day.

Inrush current limiting company Amother; we brought them on board because it did fill a gap in our portfolio, and that is developing. We also look at other passives which could be vertical. They could be vertical acquisitions to help us with manufacturing materials.

Thank you. Our next question comes from Peter Peng of J P. Morgan Peter Your line is now open.

Hey, guys. Thanks for taking my question.

Ruplu Bhattacharya: Okay, thank you for all the details.

Or it could be with customers. So we do keep our eyes open. We haven't uh moved away from that. I think we've done a good number of Acquisitions in the first 2 and a half years of be 3.0, and we continue to have that as a strategy.

Joel Smejkal: Thank you, Rupalu. Have a good day.

Guys.

Mentioned about getting more visibility in Q3, and your backlog building faster than the market appears to turn.

Okay, thank you for all the details.

Amber: Thank you. Our next question comes from Peter Peng of JP Morgan. Peter, your line is now open.

Thank you. Have a good day.

So you guys are prepping for a stronger second half of the year. If I look at some of your seasonal trends for the December quarter, It's typically down low single digits. So I can still.

Ruplu Bhattacharya: Hey, guys, thanks for taking my question. You guys mentioned about getting more visibility in Q3 and your backlog's building faster and the market appears to turn. And so you guys are prepping for a stronger second half of the year. If I look at some of your seasonal trends for the December quarter, it's typically down low single digits. So I can still get to a half on half growth, but I'm just wondering, you know, if we should be expecting more of an above seasonal trend, you know, into the December quarter.

Thank you. Our next question comes from Peter Pang of JP Morgan Peter, your line is now open.

Hey guys, thanks for taking a question. Um, you guys

Get to a half on half growth, but I'm just wondering.

We should be expecting above seasonal trend.

The December quarter.

Okay.

Like what we're seeing it's definitely different than the last two years as we look into the second half of the year. The Bieber billable backlog is building at a greater rate than we have seen previously.

Joel Smejkal: Okay, we like what we're seeing. It's definitely different than the last two years. As we look into the second half of the year, the BEBA, the billable backlog, is building at a greater rate than we have seen previously. The second half, Q3, you see our guide up slightly. Also considering that Europe has some shutdowns in August, so August is a slower month. So we still feel we can guide up in Q3. Q4, the way the BEBA is building, at this point, we see that Q4 can be better than Q3.

Mentioned about getting more visibility in Q3 and your backlogs building faster in the market appears to turn turn and so you guys are prepping for a stronger second and a half a year. If I look at some of your seasonal trends for the December quarter, it's typically down low single digits so I can still get to a half and half growth, but I'm just wondering, you know, if if we're we should be expecting more of a, a buff, seasonal trend.

The second half Q3, you see our guide up slightly.

You know, into the December quarter.

Also considering the Europe has some shutdowns in August So August is a slower month. So we still feel we can guide up in Q3 Q4, the way that <unk> building at this point, we see that Q4 can be better than Q3.

Perfect. Okay. That's helpful.

And then just on your <unk>.

End markets, we've been hearing a lot of mixed signals across your peers, some saying things are good in refilling. Some we're talking about.

Ruplu Bhattacharya: Perfect. Okay, that's helpful. And then just on your, you know, end markets, we've been hearing a lot of mixed signals across your pairs. You know, some, you know, saying things are good and refilling. Some are talking about pull forward. Maybe you can just provide some color on, you know, your customer base and whether you're seeing any pull forward demand or maybe this is just, you know, refilling channel. Maybe any color on that would be helpful.

Pull forward, maybe you can just provide some color on.

Your customer base, and whether youre seeing any pull forward of demand or maybe this is just.

Filling channel maybe any color on that would be helpful.

I think what's interesting about the climate were in the customers as far as planning their demand our stills not so far we are forward looking.

If we look at Asia, 55% of our orders seem to be for quick delivery.

Joel Smejkal: Okay, I think what's interesting about the climate we're in, the customers, as far as planning their demand, are still not so far forward looking. If we look at Asia, 55% of our orders seem to be for quick delivery. We talked about this in previous quarters as well. So even though we say the inventory has normalized, the safety net, I think the customers still think there's product out there that's quick to grab. It's not, and we're manufacturing quickly. We talk about turns orders in the quarter. We're able to take an order and turn it in the quarter. So I don't necessarily call that pull-ins. I just think that's the state of the business that we're in, is this transition from an inventory-heavy market to customers looking at their demands as they have to build and trying to now find products.

We've talked about this in previous quarters as well so even though we say the inventory is normalized the safety net I think the customers still think theres product out there that is quick to grab it.

It's not and we're manufacturing quickly we've talked about turns orders in the quarter were able to take an order and turn it in the quarter. So I don't necessarily call that pull ins.

Think thats the state of the business that we're in is this transition from an inventory heavy market to customers looking at their demands as they have to build in trying to now find products.

It's not and we're manufacturing quickly. We talk about turns orders in the quarter, we're able to take an order and turn it in the quarter.

The inventory at distributors, we've seen our inventory go down we talked about this to go from 27 weeks at the end of 2024 down to 23 weeks. So we're seeing good pull through with distribution.

Automotive was the outlook, we see for the second half with the schedule agreements from customers show is better than the first half.

Joel Smejkal: The inventory at distributors, we've seen our inventory go down. We talked about that to go from 27 weeks, the end of 2024, down to 23 weeks. So we're seeing good pull-through with distribution. Automotive, the outlook we see for the second half with the schedule agreements from customers shows better than the first half. Aerospace defense, defense contractors speak about funding that's coming. So they say a stronger second half with likely orders in Q4. AI.Is

So I don't necessarily call that pull-ins. I just think that's the state of the business that we're in is this transition from an inventory heavy Market to customers, looking at their demands, they have to build and trying to Now find products.

Aerospace defense.

Defense contractors speak about funding that's coming so they say a stronger second half.

The inventory at Distributors. Uh we've seen our inventory go down, we talked about that to go from 27 weeks, the end of 2024 down to 23 weeks. So we're seeing good pull through with distribution.

Likely orders in Q4.

AI is a nice trajectory that moves up positively at a nice slow.

Automotive, the Outlook we see for the second half with the schedule agreements from customers.

Shows better than the first half.

And industrial smart grid.

We see continued orders each quarter as governments released funding to redesign their electrical transmission lines. So thats positive in Asia, that's positive in Europe and also positive in the Americas.

Aerospace defense. Uh, defense contractors, speak about funding, that's coming. So they say a stronger second half.

Amber: a nice trajectory that moves up positively at a nice slope. And industrial smart grid, we see continued orders each quarter as governments release funding to redesign their electrical transmission lines. So that's positive in Asia, that's positive in Europe, and also positive in the Americas. So there is always the conversation about pull-ins, pull-ins to get ahead of tariffs. But I don't think that's the main driver here for us. I think these four application opportunities in those segments I talked about are really what's driving us forward.

With likely orders in Q4.

AI is a nice trajectory that moves up positively at a nice slope.

So there is always the conversation about pull ins pull ins to get ahead of tariffs.

And Industrial smart grid.

But I don't think Thats. The main driver here for US I think these four application opportunities in those segments I talked about are really what's driving us forward.

See continued orders each quarter as governments release funding to redesign their electrical transmission lines.

So that's positive in, Asia. That's positive in Europe and also positive in the Americas.

Okay. That's good color.

It's nice to hear that you guys.

So there is always the conversation about Poland's P ends to get ahead of tariffs.

More.

Hey, I'd customers.

Im not sure. If you guys can provide any color on what your revenue number is for your AI data centers, if not maybe you can give us some metrics on.

But I don't think that's the main driver here for us. I think these 4

Peter Henrici: Okay, that's a good call. It's nice to hear that you guys added more AI customers. I'm not sure if you guys can provide any color on what your revenue number is for your AI data center. If not, maybe you can give us some metrics on, you know, customer diversity. And then, you know, more importantly, how are you thinking about, you know, expanding applications, you know, into like second stage or PSU for the AI data center going forward?

Application opportunities. In those segments, I talked about are really what's driving us forward?

Customer diversity.

And then more importantly, how are you thinking about expanding applications.

Into like second stage or PSU for the AI data center going forward.

Okay, the customer count is definitely growing.

The big four that you always hear about the.

Microsoft the meta to.

So Google Apple those are great design conversations.

Uh, AI customers. Um, I'm not sure if you guys can provide any color on, what your Revenue number is for your AI data center. Not maybe you can give us a metrics on, you know, customer diversity. Um, and then in more importantly, how are you thinking about, you know, expanding applications?

If you look at <unk>. It also involved in the design not just the manufacturer of AI, but also the design. So our customer count has developed significantly theres good engineering content.

Amber: Okay, the customer count is definitely growing. The big four that you always hear about, the Microsoft, the Meta, the Google, Apple, those are great design conversations. If you look at EMS, there's EMS that's also involved in the design, not just the manufacturer of AI, but also the design. So our customer count has developed significantly. There's good engineering content. As we sit with customers, we speak about more than MOSFETs. We speak about more than ICs. We talk about capacitors, inductors, as well as resistors. So we have the broadest portfolio, and we're able to support that. So it's really about expanding the part count as well as the customer count. So we believe we have two ways to do this, not just selling one technology or two. We've got multiple, as we sit with the engineers and design in.

You know, into like second stage or PSU for for the AI data center going forward?

Okay, the customer account is definitely growing. Uh, the Big 4 that you always hear about: the, uh, Microsoft, the Meta.

As we sit with customers, we speak about more than MOSFET, we speak about more than Ics, we talk about capacitors inductors as well as resistors. So we have the broadest portfolio and we're able to support that so it's really about expanding the part count as well as the customer counts. So we believe we have two ways to.

The Google Apple. Those are great design conversations.

Uh, if you look at EMS, there's EMS that's also involved in the design

Not just the manufacturer of AI but also the design. So our customer account has developed significantly. There's good engineering content.

Do this not just selling one technology or to <unk>.

Got multiple as we sit with the engineers and design them. So we're we're positive on AI and how vishay can continue to participate with greater revenue.

Perfect.

One more question if I may.

In your prepared remarks, you talked about.

Amber: So we're positive on AI and how Vishay can continue to participate with greater revenue.

And your semi business.

Slipping of customer program.

Maybe if you can provide some color on what that is.

Peter Henrici: Perfect. One more question if I may. I think in your prepared remarks, you talked about in your semi-business, some slipping of customer program. Maybe you can provide some color on what that is.

As we sit with customers, we speak about more than mosfets. We speak about more than ICS. We talk about capacitors inductors, as well as resistors. So, we have the broadest portfolio and we're able to support that. So, it's really about expanding the part count as well as the customer count. So, we believe we have 2 ways to do this. Not just selling 1 technology or 2. We've got multiple as we sit with the engineers and design. And so we're, uh, we're positive on AI and how Vishay can continue to participate with greater Revenue.

We were on the GBP 300.

The original design if you remember it was called core Dahlia.

Perfect. Um, 1 more question if I may, I'm thinking you're prepared and watch. You talked about

Which had the chipset design that was going to snap in.

To the board.

Amber: We were on the GB300. The original design, if you remember, it was called Cordelia, which had the chipset design that was going to snap in to the board. That design changed. They went to a new design called Bianca, which is no longer using that connector snap-in connection. So we were in a strong position with that first design concept. The orders that we were planning for P6 and P7 have been adjusted because that design changed to Bianca. And now we're working on the design side to make sure we're on that program.

That design change they went to a new design called Bianca, which is no longer using that connectors snap in connection.

In your semi business, some slipping of customer programs. Um, maybe you can provide some color on what that is.

Uh, we were on the gb30.

So we were in a strong position with the first design concept.

The original design. If you remember, it was called Cordelia.

The orders that we were planning for <unk>, six and <unk> seven have been adjusted.

Which had the chipset design that was going to snap in to the board.

Because the design change to Bianca.

And now we're working on the design side to make sure we are on that program.

That design changed. They went to a new design called Bianca, which is no longer using that connector snap-in connection.

Got it okay. That's helpful. Okay, that's all I have and I'll jump back in queue.

So we were in a strong position with that first design concept.

Peter Thank you nice to talk to you.

The orders that we were planning for P6 and p7 have been adjusted.

Thank you.

I'm showing no further questions at this time I would like to now turn it back over to the President and CEO, Joe Smith for closing remarks, Thank you Amber.

Because the design changed to Bianca.

Peter Henrici: Got it. Okay, that's helpful. Okay, that's all I have. And I'll jump back and keep.

And now we're working on the design side to make sure we're on that program.

Amber: Peter, thank you. Nice talking to you.

Peter Henrici: Thank you.

Thank you everyone for joining us for our second quarter earnings Conference call, we're making great progress to participate more fully in the market upturn.

Got it, okay, that's helpful. Okay, that's all I have. And I'll jump back.

Joel Smejkal: Thank you. I am showing no further questions at this time. I would like to now turn it back over to the President and CEO, Joel Smejkal, for closing remarks.

Peter, thank you. Nice to talk to you, Peter.

Capacity ready and reliable supply to our customers and to be aligned for the market growth drivers that we've spoken about in AI.

Amber: Thank you, Amber. Thank you, everyone, for joining us for our second quarter earnings conference call. We're making great progress to participate more fully in the market upturn, capacity-ready and reliable supply to our customers, and to be aligned for the market growth drivers that we've spoken about in AI, smart grid infrastructure, aerospace, defense, and automotive. We look forward to reporting our third quarter results to you in November. Thank you very much and enjoy the rest of your summer.

Thank you. I'm showing no further questions at this time. I would like to now turn it back over to the president and CEO. Joe smejkal for closing remarks. Thank you Amber.

Smart grid infrastructure aerospace defense and automotive.

Uh, thank you everyone for joining us. For our second quarter earnings conference call.

We look forward to reporting our third quarter results to you in November. Thank you very much and enjoy the rest of your summer.

We're making great progress to participate. More fully in the market. Upturn.

Thank you for your participation in today's conference. This does conclude the program you may now disconnect.

Capacity. Ready and reliable Supply to our customers. And to be aligned for the market growth drivers that we've spoken about in AI.

smart grid, infrastructure, aerospace defense, and automotive.

We look forward to reporting our third quarter results to you in November.

Thank you very much and enjoy the rest of your summer.

Thank you for your participation. In today's conference, this does conclude the program. You may now disconnect