Financial Data and Key Metrics Changes - First quarter revenue was $2,420 million, representing a 1% sequential decrease and a 4% decline year over year, but a 4% increase when adjusted for an extra week in the previous fiscal year [16][19] - Gross margin improved to 68.8%, up 90 basis points sequentially, while operating margin was 40.5% [19] - Adjusted EPS was $1.63, at the high end of the guided range [19] Business Line Data and Key Metrics Changes - Industrial segment accounted for 44% of revenue, up 1% sequentially, with strong demand in automatic test and aerospace sectors [16][17] - Automotive represented 30% of revenue, increasing 2% sequentially, driven by double-digit growth in connectivity and functionally safe power solutions [17][11] - Communications made up 12% of revenue, up 6% sequentially, with wireline showing double-digit growth due to AI-driven data center infrastructure [17][12] - Consumer segment represented 13% of revenue, down 15% sequentially, reflecting seasonal weight [18] Market Data and Key Metrics Changes - Strong performance in the automotive market, particularly in China, with three consecutive quarters of double-digit growth [27][28] - Industrial bookings showed recovery, with stabilization across automation, healthcare, and energy sectors [46][48] - Overall, the company is seeing a positive trend in order improvements and a favorable book-to-bill ratio [22][23] Company Strategy and Development Direction - The company is focused on leveraging its hybrid manufacturing model to enhance customer engagement and pipeline growth [6][15] - Continued investment in high-performance technologies across various sectors, including automation, digital healthcare, and automotive [13][60] - The company aims to secure dual sourcing for 95% of its products by the end of 2026, enhancing resilience against geopolitical risks [40][41] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in a sustained recovery, supported by normalized inventory levels and improved customer demand [7][70] - The company anticipates double-digit year-over-year growth in the second quarter, driven by industrial and automotive sectors [5][22] - Management acknowledged the uncertainty in the macro environment but remains optimistic about long-term growth potential [70] Other Important Information - The company returned over $2,400 million to shareholders through dividends and share repurchases over the trailing twelve months [21] - An 8% increase in the quarterly dividend was announced, raising it to $0.99 [21] Q&A Session Summary Question: Impact of the auto market shift towards China - Management noted stronger share and content position at major Chinese EV OEMs, with expectations for continued growth in Q2 [27][28] Question: Long-term model growth expectations - The long-term model growth is expected to return to a range of 7% to 10%, with potential for more growth as macro conditions improve [35] Question: Normalization of inventory levels - Inventory levels have normalized across direct and distribution channels, positively impacting demand visibility [33][34] Question: Confidence in reaching the bottom of the cycle - Management emphasized the importance of sell-through signals and noted stabilization in various markets, despite geopolitical uncertainties [68][70] Question: Conversion rate of design wins - Management highlighted strong conversion rates and the introduction of new products driving growth in key markets [75]