Question · Q1 2024
Asked about the customer inventory situation and how much longer it will take to normalize. He also asked for clarification on whether the large design wins are hard contracts with minimums or just based on customer forecasts, and when they would start to hit the backlog.
Answer
The company indicated that excess inventory was enough to cause about $25 million in book-ship delays in Q1 and a similar amount in Q2, but they believe the situation is thinning out and will normalize in the second half of the year. They reiterated that the design wins are not hard contracts but are based on customer forecasts, with purchase orders issued against them over time. These would start hitting the backlog towards the end of the current year, supporting the growth outlook for late 2024 and 2025.