Knowles(KN)2025-02-14 01:22Financial Data and Key Metrics Changes - For Q4 2024, revenue was 0.27, up 23% from Q4 2023, also within guidance range [22][49][62] - For the full year 2024, revenue grew 21% and non-GAAP diluted EPS grew 32% compared to 2023, driven by strength in MedTech and specialty audio [10][50] Business Line Data and Key Metrics Changes - In Q4, MedTech and specialty audio revenue was 73 million, up 4% year-over-year. Full-year revenue grew 36% compared to 2023, aided by the addition of Cornell [58][64] Market Data and Key Metrics Changes - The distribution book-to-bill trend was positive in Q4, indicating a reduction in excess sales inventory in industrial end markets [58] - Approximately 5% of revenue in 2024 could be subject to tariffs on imports from China or Mexico, but exposure is considered limited [19][60] Company Strategy and Development Direction - The company aims to leverage core competencies in medical markets and expects to see growth in 2025 and beyond through innovative customer solutions [11][35] - The recent sale of the consumer MEMS microphone business is part of a strategic transformation to strengthen the balance sheet and focus on core businesses [37][78] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in revenue and profitability growth in 2025, citing a healthy pipeline of new opportunities and strong demand in various markets [36][76] - The company anticipates a return to year-over-year revenue and earnings growth beginning in Q2 2025, supported by a strong backlog of orders [72][76] Other Important Information - Cash from operations for Q4 was 130 million [26][66] - The board authorized an additional 150 million for stock repurchase, reflecting continued support for returning capital to shareholders [18][68] Q&A Session Summary Question: Pricing pressure across segments - Management noted that pricing pressure is mainly observed in the MSA business on mature products, while the Precision Devices segment has seen a net positive pricing impact [86][87] Question: Inventory levels - Inventory at distribution partners decreased from about six months at the end of Q3 to four to four and a half months at the end of Q4, with strong bookings in Q4 providing confidence for growth [88][90] Question: Specialty film production challenges - Management indicated that production challenges in the specialty film business are expected to improve by the end of Q1 or into Q2, with a significant backlog of orders already in place [94][95] Question: Consumer MEMS microphone business revenue - The consumer MEMS microphone business generated approximately 260 million in revenue from January 2024 until its closure in December 2024 [97]