Quarterly guidance

Net Sales
Between down 3% and up 1% with the midpoint of minus 1%.
Non-GAAP Gross Margin
Between 64% to 65% of net sales.
Non-GAAP Operating Expenses
Between 26.5% and 27% of sales.
Non-GAAP Operating Profit
Between 37% and 38.5% of sales.
Non-GAAP Diluted EPS
Between $0.87 and $0.95 per share.

Annual guidance

Capital Expenditures
About $100 million for fiscal year 2027.

Outlook

Data Center Demand
Management believes the data center market is in a bubble and expects the second derivative of growth to come down.
Industrial Market
The company sees broad-based opportunities in industrial applications including robotics, medical, and process control.
Automotive Market
Automotive demand is recovering with growth driven by increased content per vehicle rather than unit volume.
Supply Chain
Lead times for standard products have extended to 6 to 32 weeks due to foundry and OSAT capacity constraints.
Capacity Constraints
Management expects capacity to improve incrementally in the March and June quarters as they qualify new suppliers and bring production in-house.
Pricing
The company does not plan to implement further price increases in the near term, preferring to absorb costs.
Leverage
The company expects the net debt to adjusted EBITDA ratio to continue to reduce throughout fiscal year 2027.