Q2 2024 Vishay Intertechnology Inc Earnings Call Transcript
Key Points
- Vishay Intertechnology Inc (VSH) reported second-quarter revenue of $741.2 million, in line with guidance, supported by the Newport acquisition and increased demand from AI server markets in China and Taiwan.
- The company is making progress with its Vishay 3.0 strategic plan, focusing on customer engagement and capacity expansion, which has resulted in increased distribution revenue and improved bookings from automotive and industrial customers.
- Vishay Intertechnology Inc (VSH) has signed a significant silicon MOSFET supply agreement with an automotive OEM, indicating strong engagement and potential future growth in the automotive sector.
- The company is actively expanding its product portfolio and capacity, including the acquisition of Ametherm and the development of silicon carbide technologies, positioning itself for future growth in e-mobility and sustainability markets.
- Vishay Intertechnology Inc (VSH) is seeing positive trends in the medical segment, with a 14.7% increase in revenue from the first quarter and the hiring of a new medical segment leader to drive further growth.
- Automotive revenue declined by 6.7% from the first quarter and 13.6% compared to the previous year, impacted by lower demand from Tier 1 automotive customers and postponed EV production.
- The company reported a decrease in gross margin to 22.0%, with a negative impact from the Newport acquisition and a reduction in ASPs, particularly in the semiconductor segment.
- Vishay Intertechnology Inc (VSH) experienced a book-to-bill ratio of 0.86, indicating a decline in new orders compared to shipments, with a backlog decrease to 4.6 months.
- The company used $25 million in operating cash for the second quarter, with a negative free cash flow of $87 million, impacted by significant tax payments and capital expenditures.
- Vishay Intertechnology Inc (VSH) is facing challenges in the semiconductor market, with continued inventory digestion expected to last until the end of the year, affecting revenue growth.
Good day, and thank you for standing by. Welcome to the Vishay Intertechnology Q2 2024 earnings call. (Operator Instructions) Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Peter Henrici, Investor Relations. Please go ahead.
Thank you, Jill. Good morning, and welcome to Vishay Intertechnology's second-quarter 2024 earnings conference call. Joel Smejkal, our President and Chief Executive Officer; and Dave McConnell, our Chief Financial Officer, will join me today. 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 via replay on our website. We will be referring to a slide presentation
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
