I think we're live. Okay. All right, we'd like to get started. Good afternoon, everyone. My name is Toshiya Hari. I cover the semiconductor space at Goldman Sachs. Very excited to have the team from Microchip with us this afternoon. We have Eric Bjornholt in the center, SVP and CFO of the company. We also have Sajid Daudi, Head of Investor Relations. Gentlemen, thank you so much for coming. Thanks for having us. Hi, everybody. All right, I'll kick off with a bunch of questions here. In terms of the near term, probably one for you, Eric. You cited a moderation in customer bookings. You've guided September quarter revenue down 7% sequentially at the midpoint. You know, how has the quarter trended so far? Any standouts, any surprises to the upside or the downside? Okay. So let me start by referring you to our filings with the SEC that identify important risk factors about the company. We will be making certain projections and forward-looking statements, and I refer you to those documents to identify risks. So, you know, the quarter, you know, we announced earnings in early August, and we talked about a couple of things that we were seeing in the business. One is that we are seeing fewer requests for pushouts and cancellations. That has continued. We are seeing more requests for orders that have been placed out in time to be pulled in. The other thing that we are seeing, although bookings are at a lower level than we would like them to be, that the percentage of our bookings that are coming in with shorter delivery dates, more in line with our lead times, is improving. So, you know, those things are all continuing as expected. I think from an end market perspective, we aren't really seeing anything different than what we talked about back in the earnings call. Industrial is weak, automotive is weak, going through inventory correction. We are seeing some strength in data center this quarter, and we expect data center overall for us to grow in both the September and the December quarters. You know, before it was just kind of the AI piece of data center, which for us is a little less than 5% of revenue, but now we're seeing some momentum in the overall data center business, which makes up about 18% of our revenue. So all that is really unchanged. Okay. Got it. Thank you for that. So again, September quarter guidance is down 7% sequentially. I think many of your peers are guiding the quarter flat to maybe up a little bit, down a little bit, somewhere in that range. You know, I realize one quarter doesn't make a trend, certainly, but what is driving the delta there in your view? Is it inventory dynamics? Is it share? How should we think about the relative performance in the near term? It's not share. I think if you have to look over the history of this last cycle, and Microchip definitely overperformed at the upside of the cycle or the top of the cycle, and now we are underperforming on the down cycle. I think it's just a matter of customer. You know, there's always going to be customer and end market differentiation, but I think a lot of it is just based on inventory, and we entered the cycle later, and so our recovery is coming a bit later than most. Got it. And on that point, on customer inventory, I realize you guys don't have perfect visibility into customer inventory, but how would you characterize where, you know, inventories are today relative to three, six months ago, or what you would consider to be normal or healthy? The inventory position is improving when we look at customers and distributors. You know, we get real-time data from our distributors, so we can tell you exactly what's happened over a period of time. Distribution inventory came down in dollars by $125 million in the March quarter and about $85 million last quarter. We expect sell-through activity from distribution to be higher again this quarter than you know what we were expecting in terms of sell-in activity. Distribution is correcting, and the thing that we're pointing out to investors on that is that that is on a lower level of sell-through activity because distributors' customers are also adjusting inventory. And, you know, right now, customers, you know, end customers, distributors, contract manufacturers, whatever it might be, all know that Microchip and the rest of the industry have ample levels of inventory. We've got a lot of inventory. Lead times are extremely short. And with that, they are managing their working capital. We've got interest rates that are still stubbornly high. I'm gonna hope for better news on that next week. We'll see how it goes, but, you know, with that, they are comfortable taking inventory down to lower levels. And, you know, the surprising piece of it to me is, if you had asked me 18 months ago, are customers going to return to pre-COVID levels of inventory? I would say, "No way," right? I mean, that, we've just gone through this crazy upcycle, where lead times pushed out longer than what we've ever seen in our company's history, and customers couldn't ship an $80,000 automobile or a $30,000 piece of metal equipment because they couldn't get a $2 microcontroller, right? It makes no sense to run inventory down that low. But customers appear to be very comfortable, at least in the short term, in taking down inventory. So we'll see how all this plays out. What we would really love for our customers to do is at least give us better backlog visibility, right And that positions us to make sure that we're building the right things for them, and they have very little risk in giving us that sort of visibility because they can change, push out, cancel that order anytime prior to 45 days of delivery to them. So, you know, that would be the most helpful thing to us, to make sure we are positioned appropriately to respond, because inevitably, customers overcorrect on the upside, and they overcorrect on the downside. Right. Right. Got it. On the PSP program, now that you've had multiple quarters to look back, you know, on the pandemic and the PSP program, I'm curious if a sharp cyclical upturn were to occur, over the next, you know, say, couple of quarters, and your customers came to you asking for reassurance of supply, long-term supply... Would you reintroduce the PSP program? And what aspects of the latest iteration or version would you inherit, and which aspects would you tweak or change? Okay. So, you know, the PSP program was a good program for us. You know, we introduced that program in response to customers wanting a higher level of assurance that they could get product. And, you know, this is when lead times went from eight weeks to 52 weeks, right? And so we had never been in that situation before. Now, was it a perfect program? No. You know, we thought that when we were getting these non-cancellable, non-reschedulable orders, that it was a true reflection of what the customer was going to need. But the challenge is, when you're going out that far in time, they're guessing in terms of what end-market consumption is going to be. And you might have an industrial customer that thought their business was going to grow 10% this year, and now it's down 5%, right? And that automatically puts them in a situation where they're over inventoried. So I think there's several things that we would do differently next go around. Now, I am hopeful we don't have to introduce a PSP-type program before. I've been at Microchip for 29 years and had never seen lead time stretch out like they did this last cycle. It's not saying that it couldn't happen, but it's happened once in my pretty long career at Microchip, so I hope we don't get there again. But, you know, we take every opportunity that we have where we've executed a program, we've done an M&A transaction, whatever it might be, and take learnings from that and figure out, you know, what could we do better next time to make the program better? And there's several things that we're looking at. You know, we want to look at customer run rate activity, make sure that something flags it in our system. The customer has been buying 10,000 units a month for the last three years, and now they need 40,000 units a month, right? That should be questioned, right? Because we don't want a single customer to consume the capacity of a certain device. We could also say, "Hey, we, we have a PSP or NCNR program, but we only let 50% or 60% of the capacity for that given product to go on the program, and that gives us flexibility to manage the rest of the business and not have it completely be consumed by a PSP program. So we'll see. You know, again, we're hopeful that we don't have a situation where lead time stretch to the same way they did this last cycle, but we'll be, we'll be better the next time and then implement a program if needed, that, you know, gives us better indicators of what's happening. Microchip sells... You know, you guys sell a broad range of products to a broad range of end markets and applications. But I am curious if you had to call out—you know, you talked a little bit about data center earlier—but if you had to call out three or plus or minus drivers that could really, you know, turbocharge the business forward over the medium to long term, what would they be? I mean, the things we talk about, and that this is more than three, but we talk about 6 mega trends that our business is focused on. And these are areas that we think have legs over the next 10 years to provide above-market growth. And, you know, those are IoT. Data center is a piece of that, right? Whether it's AR or not, data center, the amount of data that the world is creating is growing at an exponential rate. Within automotive, you have ADAS, and you have EV. We've got 5G as a piece of that, and then sustainability, which covers a wide variety of things that we do to help our customers be more efficient from a power perspective or a consumption perspective. So those are the areas of focus from an end market perspective. Then we look at it from a product perspective, how do we position our products together to be able to take advantage of what we call TSS or selling total system solutions? You know, all those teams are working together to make sure we've got reference designs, customer collateral material to make our salespeople successful. But the customer ultimately provide a benefit to our customer with lower engineering costs, faster time to market, and more complete solutions. Got it. At the most recent Analyst Day, I feel like it was a long time ago, but at the most recent one, I think the long-term revenue CAGR target you provided was in the 10-15% range. You know, obviously, you guys operate in a cyclical business, but when you think about the through-cycle growth rate, is that still the relevant, appropriate range in your view? Yeah. A lot has happened. Yeah, a lot has happened, and I think you have to go back to that November of 2021 meeting, and we were using fiscal twenty-one as a baseline. And you say long term, it was five years. That seems long term, but, you know, we didn't say this was a continuous 10%-15% CAGR. Really, we want to position the portfolio, the products, and what we do with our customers to drive market share gains. We target internally to try to grow at twice the rate of the market, and obviously, that's going to be different year by year. I think if you go back to fiscal 2021 to now, we are clearly well below that 10%-15% growth, but we are well above it for a few years during the cycle also. So over time, we just want to position ourselves to gain market share, and internally, we probably target about two times the market growth. And we think the mega trends, combined with these selling more complete total system solutions, will help us get there. Got it. Again, going back to data center, I think it was 16% of fiscal 2024. Eighteen, yeah. 18%. I apologize. 18% of fiscal 2024 revenue. You know, not all data centers are created equal. I'm curious, as AI comes into the picture, if not already, how should we think about that impacting and influencing your business going forward? Total data center. So it's important. Again, data center is a mega trend for us. AI is a piece of that, but we have a lot of products that sell around these more complex chips that you hear about from some of the big guys, the people that talked this morning early on at the conference, right? We have PCIe switches, we've got retimers, we've got SSD controllers, we've got standard microcontroller and analog products, timing solutions, security, root of trust products. So there's a lot that goes around that, and, you know, we try to get on the reference designs and then be complementary to these other products that are being sold in. It's been a great business for us. You know, a large piece of this came to us through the Microsemi acquisition, which happened back in 2018, and the business has grown nicely, got great, great margin structure, and we're excited about the opportunities in the future. Sajid, would you highlight anything else on data center? No, that's about it. And I think, additionally, just pre-COVID, it was a pretty robust grower, too, going into this environment. Got it. Eric, you talked a little bit about your total system solution strategy. Maybe expand on that a little bit. How does it al So we are fortunate in the product portfolio that we have, that we are selling the brains of the system in many of these embedded applications, right? We've got anywhere from 8-bit to high-end to 32-bit microcontrollers. We have microprocessors, both on 32-bit and now 64-bit. We have FPGAs, we have some ASICs in the portfolio. So that is typically the first chip that a designer, the embedded design engineer, uses when they're building out their system. And then they lay out the analog, the connectivity, the timing, all these other products around it. And so by doing that and approaching it that way, we have a lot of the anchor products in these solutions and then can position the rest of the portfolio around that. And it works well when we go into a customer. We've got a working reference design. "Hey, we've done this 25 other times for customers. We can speed their time to market." Almost all of our customers are engineering resource limited, right? So if we can do anything to help them speed their time to market, reduce their investment in R&D, make them more cost-effective, and at the same time, make us more sticky with the customer, the benefits are on both sides. So we're really excited about the opportunity. We can see it in every business unit review that is given internally. They talk about, "Hey, well, this is what we've won," for their particular product division, "and this is what's sold around it." And also identifying: Well, if we didn't win, what are the areas from a product perspective that would have helped us get there? What were we lacking that didn't allow us to get there? And that's what the whole focus is within Microchip, megatrends and TSS. Got it. I guess, somewhat related to that, you know, your FPGA business has done really well over the past couple of years. You've outperformed the industry, I believe, over the past 12 months. I think many of your peers have gone through, you know, pretty significant correction. Which end markets or applications have driven your success relative to peers, and what are your long-term aspirations in FPGAs? So in FPGA, again, this is a business that we acquired in the Microsemi acquisition six years ago. And when we acquired Microsemi, the business was very much focused on the aerospace and defense market. That's been a great market for us and has continued to grow, and it's been quite steady through this cycle. We've called it out as being a high performer from an end market perspective throughout the cycle. So that's been good. But we have then taken those products and expanded into other areas in industrial, in automotive, in communications, and the products play very well there. And, you know, the product line is continuing to introduce new products all the time also. Our kind of brand name for our recent products there is PolarFire. We have PolarFire Two coming out soon, and, you know, we think the specs on that are fantastic. They're going to do extremely well in the marketplace and allow us to expand. We're kind of in the mid-range of the FPGA space today, and we have aspirations to encroach on the lower end of the high end and the higher end of the low end also with the product portfolio. Okay, great. Maybe on pricing, you know, I realize you guys don't operate a commodity business, and the design cycles are long, and the product cycles are long. But curious how you're thinking about pricing going forward? You've gone through, not you specifically, but the industry has gone through a fairly inflationary period. I would say a lot of capacity has been added, both at the IDMs as well as the foundries. So I guess there is a concern out there that pricing could decline more so than historical patterns into 2025, but how are you all thinking about overall pricing for your overall business? Yeah. From our perspective, nothing has changed on pricing. Pricing is always extremely competitive at the point of design, right? We tend to be leading in the new designs with our newest products that are on the most advanced process technologies or more cost-effective, have a better feature set, and can position those products with aggressive pricing, because we see that over time, the margins on our product improve. In many cases, you know, we don't even peak in revenue on a product until 10 or 12 years after it's introduced, right? We have a lot of time, and we look at, you know, where is the margin gonna be over the life of the product. Typically, new products have lower margins in the early stages. That's planned for, and then they improve over the course of time. Our position with customers is that, yes, we are competitive at point of design, but once we're designed in, the work has been done by Microchip, the work has been done by the engineering side of the customer, and that pricing should be fixed over the life of the product. Now, we did, as others did, during the upcycle and the inflationary pressures of higher capital costs, higher wage costs that were outpacing the rate of change that we could get from a cost reduction standpoint, we did increase prices. We were fair with customers on that. We were transparent, and those prices are staying firm at those levels. ... Great. On the geopolitical backdrop and how you all think about your manufacturing footprint, you know, one of your competitors has been pretty aggressive in expanding capacity here in the U.S. They've also been very vocal as to how having access to geopolitically dependable capacity is a competitive edge. How do you guys think about that dynamic? We are very comfortable with what we are doing from investing in capital. Now, the competitor that you are mentioning has a much different position than we do, right? We do about 40% of our manufacturing from a wafer fab perspective in-house. Those are in three large fabs in the U.S., one in Arizona, one in Colorado, and one in Oregon, and we have continued to expand in those locations. But we are process technology limited. Anything that is 90 nanometer or below, or on a 12-inch wafer, we are dependent on the professional foundries for. And we evaluated the possibilities of doing a 12-inch factory, thinking about CHIPS Act money, investments, partnerships, whatever it could be, and we could not make it cost-effective for us. Not saying what the competitor is doing is wrong, it's just a different business model. Yeah. But we are quite comfortable with the strategy that we have. We feel that our foundry partners understand what our long-term roadmap is and will be there for us in investing in new capacity. They have done that. In some cases, they are investing in capacity outside of Taiwan, as an example, and again, that can provide some benefit to customers if they feel that being not in Taiwan or China is important to them. I will say, you know, customers just want reliable supply, and over time, our foundry partners have been very reliable for us in terms of delivering what we need to service our customer base. So really no change on the manufacturing front. You know, we think that we'll stay about at this 40% level for internal fab. We'll probably increase the amount of assembly and test that we do. Today, it's roughly 60% on the assembly side, and high 60 percentage for assembly will probably... Excuse me, for test. Assembly will probably take to about 70%, and test will take to probably 80% over the course of time. Okay. Good. The medium term. Yeah. And, you know, I probably should emphasize with this, our capital that we have to invest in the business is pretty minimal. You know, in the up cycles, we might invest 6% of sales in capital. In the down cycle would be about 3%, but the capital intensity is much different for us than the competitor that you compare us to, and again, reasons for that. Mm-hmm. Got it. That's helpful. CHIPS Act funding, you guys announced an agreement with the CHIPS office back in January. What are some of the key milestones that you need to hit for you to actually see the funds come through? So, so just to clarify that, we entered into a what's called a PMT or a preliminary memorandum of terms with the CHIPS office back in January, and we supported the CHIPS office through diligence through March and got through that. And we have not signed a final memorandum of terms for or a final agreement at this point in time. We've got $162 million that they have kind of offered up to us, and we are working through the details of the contract with them. We're still quite hopeful that we get there. But, you know, it's not a make or buy situation for Microchip. If we get the money, it's great. If not, there'll be business reasons why it didn't make sense to do it, and again, the CHIPS office has been supportive. They're understanding of what our issues are, and we're working through those things. Shifting gears a little bit, competition with local Chinese suppliers is a big topic, and I'm sure you guys get questions all the time. Can you remind us what percentage of your business today comes from China? What percentage of that is China for China? What are you seeing on the ground from a competitive standpoint? Is it more intense? You know, what are you seeing from your perspective? So we sell based on where we ship the product, about 18% of our revenue into China. We feel that about half of that is designed outside of China for consumption outside of China. So domestic China exposure is somewhere around 9% to 10% of revenue. And of that, we think that half of it is highly proprietary, unique stuff to Microchip that competition in China can't touch. And, you know, the other 5% of revenue is more standard microcontroller analog products that will be subject to more competition over time. Now, there's a reason these customers have chosen to design with Microchip. It's because we have a huge portfolio of products. We provide great support, and it's very difficult for a China competitor to come in and compete with that because customers want options. You know, most of the time, a customer starts their design, what they go to market with is something different, right? And when you've got a wide portfolio, let's take microcontrollers as an example, from everything from the low end of 8-bit to the high end of 32-bit with thousands of products, customers have choices. If they go with one of these local competitors and they change, right, do they have to start over from scratch? Do they have to go to another competitor? So they don't run that risk with Microchip. Also, we're selling these more complete solutions, right? And so that is value add to the customer. So you know, we aren't saying that competition isn't real in China. Obviously, they're investing a bunch, but, you know, we think any bleed we have on this 5% of revenue that we have there, that is really more standard product that's subject to that competition, will be slow. And again, you have to remember that we design products into applications that, in some cases, sell for 20 years. So, we're focused on it. We're continuing to support customers and winning our fair share of business. Got it. Yeah, I'm going to pause here and see if we have any questions from the audience. If not, I can keep going. You can raise your hand. Maybe going into the model, gross margins, puts and takes, maybe starting off with factory utilization rates. I know you guys have been moderating production, if you will. What's the plan going forward? You talked about pricing being stable. Yeah. Any other kind of pluses and minuses that we should be thinking about as it pertains to gross margins? Okay, so we are underutilizing our factories today. You know, obviously, we had ramped our facilities and, you know, our foundries had ramped up to be able to support a quarterly revenue run rate of about $2.3 billion, and we're roughly half of that today. So there's lots of capacity. We are underutilizing our factories. I think last quarter we took an underutilization charge of about $36 million, and we don't start taking that charge until utilization gets back to kind of normalized levels, and we were running factories at, like, 100% utilization for an extended period of time. So, today we're getting that charge. On top of that, we are taking some inventory reserve charges, which are accounting charges that are required based on our accounting policies. Those will probably be the first thing that go away to help gross margin, as you know, once the business environment starts to improve, bookings activity picks up, business confidence from our business unit leaders picks up, you know, those reserve charges will come down. And, you know, quite honestly, we're not building product that we don't think is going to sell eventually. And, you know, I don't know if it's going to sell a year from now, two years from now, three years from now, but eventually those reserves should provide some tailwind to gross margin. Mm-hmm. Got it. Okay. So to your point, for you to meaningfully take up utilization rates, it's booking, sustainability, it's business confidence, those kind of things. I mean, really, we need revenue to return to a higher level. Right. You know, that will happen. It's just a matter of the timing. Right. Okay, makes sense. OpEx is down about 25%, peak to trough. Is it entirely due to the cycle? Is there a permanent change? How should we think about OpEx on the way up as business recovers? Yeah. So our peak OpEx from a non-GAAP basis was about $464 million a quarter. This quarter, we're guiding to about $351 million, which is about this 25% reduction that you mentioned. And there's various pieces of that, right? I mean, we've got everybody in the company on a salary cut today. That's 10% for most of the population, it's 20% for executives and others that, believe it or not, have volunteered for more. We've got a pretty unique company culture, where in these down cycles, we don't do layoffs, right? We lay people off for performance issues, but we don't do broad-based layoffs. And what that does is it gets everybody bought into a shared sacrifice, shared reward system. You know, the business was doing great, you know, last year, the year before that, and bonuses were paid at a very high rate. We reminded people when we were paying those bonuses, "This is a cyclical industry. This is temporary. Don't spend it all." Most people listened to that. It's difficult to have employees on a pay cut. Ganesh has made the commitment to the broader base of employees that, you know, after they've been on that pay cut for nine months, which will be kind of middle of November to early December for the employee population, we're going to return them to full salary. That's happening partially through next quarter. Anybody at a director or above level in the company, so the executive team, will stay on the pay cut for longer and as long as we need. So, you know, that is a temporary reduction. You know, we were paying bonuses at 200%-250% of target back in the upcycle when we were producing 48% non-GAAP operating margins. Today, those bonuses have gone to zero, and they can stay at zero for as long as they need to, until the business improves and we start showing significant improvement in margin. So there hasn't been a lot of what I would call permanent reduction. We have had, through this cycle, some turnover. We've had some retirements at higher ranks, and, you know, we do, as Microchip always does, is we give people opportunities from within and then replace people with, you know, new college grads or new people to train through the system. And so the cost structure is lower because of that. We've taken out a lot of discretionary expenses for travel, advertising, things like that, that will come back into the PNL as it can afford it. But you can view that June quarter of 2023 OpEx is where it hit its peak, that was inflated in dollars because bonuses were so high, so you shouldn't expect it to bounce back to that level. Got it. Okay. It sounds like a lot of the changes, whether it be the gross margin or the OpEx, is very cyclical in nature. The long-term margin targets that you guys threw out at the Analyst Day, those seem fairly reasonable still. Is that the right way to think about? They do. They do. Got it. So, and those were 68% gross margins at the midpoint and 45% operating margins, on a non-GAAP basis. We well exceeded that in the upcycle. I think our peak operating margin was 48.4%. And, you know, we see no reason to change the model. The cost structure is in great shape. We just need revenue to get back on track, and it will. Got it. Capital allocation and maybe M&A, you've been really methodical and transparent with your approach to capital return. I believe by the March quarter of next year, you'll be returning 100% of free cash flow to shareholders. Post that, is M&A still a consideration? Do you feel like you have the right pieces in place to execute your strategies, and therefore you're done? How should we think about the priorities from a capital allocations standpoint? So we don't view that we need to go out and do a large-scale M&A transaction. We have the pieces of the puzzle that we need to be successful and support our customers. It doesn't mean that every business, you know, we have, you know, they're all working on new product introductions, but we're not lacking this gaping hole that we need to fill. And our acquisition strategy between 2010 and 2018 helped us build up this portfolio, along with our organic efforts. So, yeah, we'll do small tuck-in acquisitions, and I would never sit here and tell you that there'll never be a large M&A for Microchip, but, you know, our cash flow will be at a point where we're generating a lot of cash, and if we were to come to market with a deal, and again, I'm not signaling that, that's not the intention today, I'm saying longer term, that, you know, we could back off from some of the buyback activity and justify to investors, "Hey, this is why this is going to give you a better return than buyback." But today, you know, we're really not focused on any large scale M&A. We've done a couple of small tuck-in acquisitions. We did two in the June quarter, and we've just reduced the amount of stock buyback for the amount that we're paying for those deals. Got it. Makes sense. So we want to keep leverage in terms of dollars, pretty stable. Net debt to EBITDA is obviously increasing right now, increasing when EBITDA is falling, but again, that's temporary in nature. Very clear. AI is obviously a very hot topic, these days, and certainly at this conference. At Microchip, do you guys leverage AI, whether it be chip design or day-to-day operations, you know, vis-à-vis a couple years ago? Yeah, I can, I can start on that. Yeah, so at Microchip, we've been leveraging AI for almost six years now, you know, starting with machine learning and deep learning in a lot of our operational activities. And then today, and it's becoming more and more integral part of our business today, roughly 87% of our orders are auto-scheduled through a deep learning engine. And then, you know, more recently, we've been leveraging generative AI, which is helping a lot of our teams translate technical documents, software libraries, and other areas and translation and stuff. So yeah, so we've been deeply using AI in many different facets, and we feel that sales efficiency, operational efficiency and product development, all three areas, is where we can, you know, leverage that. Yeah. And we are- I would say that Ganesh and Rich Simoncic, who's our COO, challenged all of us in terms of, you know, how are we going to use these tools to make ourselves more efficient. Mm-hmm. You know, every business unit, every administrative function is looking at it, and I'd say it's early stages, but we're having- Mm ... some success. Okay, great. I guess in the last two minutes, Eric, I wanted to give you the opportunity to kind of speak to anything that we may have missed or I know we're keeping you busy, with meetings all day. Anything as a collective unit we underappreciate about Microchip or misunderstand about the cycle, but anything you want to highlight? I mean, obviously there's a lot of short-term focus from investors at this point in time, and we fully understand that. We want to continue to emphasize, you know, what we have done in terms of investing in product development, new product introductions, how we are supporting our customers with these more complete solutions, and those are really the key to the long-term success and market share gains of Microchip. You know, we think we're doing all the right things. Design activity is very high today. You know, if you go back 18, 24 months ago, it wasn't, because customers were just scrambling to figure out how to get their products out the door if they couldn't get the exact product from Microchip or one of our competitors. Could we tweak a product to get them something in a shorter lead time? But now it's full focus on new product introductions. We're seeing that with how the seeding activity is happening through our catalog distributors, activity that our salespeople are having with customers. Design activity is high, and that bodes extremely well for the future. Outside of that, I think we covered most of the important topics in your Q&A. Okay, awesome. Thank you so much. Great. Really appreciate the time. Thanks. Thank you all. Thanks, everybody. Thank you.