The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: STbastien Sztabowicz - Kepler Cheuvreux (France) - Analyst
: Hey. Hello, everyone. Thanks for taking my question. The first one is on the initial market. Could you please comment a little bit on the level of
inventory that you are seeing right now on the specific market? And when do you believe this inventory correction could be completed?
And the second one is that, your comment on the automotive market that is currently weakening. Is it a matter of some inventory build in the
market or it is just due to weaker-than-expected global car production volume? And if there is some inventory building up, where it is really
happening right now? Thank you.
Question: Janardan Menon - Jefferies International Ltd. - Analyst
: Hi. Good morning. Thanks for taking the question and congratulations on a good set of results. My first question is also on automotive. Yes, all your
peers have also flagged the weakness in automotive into the second half of the year. But for the last 12 months or so, you have been talking about
some strong design wins ramping in automotive in the second half of the year alongside also the consumer design win.
But it appears that the consumer design win is coming through quite nicely and ramping up your revenues quite nicely into the third quarter, but
the automotive doesn't seem to be coming through. Is it because the weakness is more than compensating for those ramps or is it there's any
delay in those ramps? Any color on that?
I'm also trying to really get a feel for how your revenues will progress into Q4. I know you don't want to give any guidance for Q4 at this stage, but
just qualitatively, if auto stays weak on the production side into Q4, is there some upside from new designs ramping into Q4? I'm also trying to get
at.
Question: Janardan Menon - Jefferies International Ltd. - Analyst
: Understood. And then on the cost reduction, you seem to be making very good progress there, and you've already had EUR60 million out of the
targeted EUR75 million run rate. Does that mean that there could be some upside over there? Could you continue to see the first half run rate in
the second half and exceed that EUR75 million?
Question: Robert Sanders - Deutsche Bank - Analyst
: Yeah. Hi. Thanks for taking my question. I was just interested in asking about pricing as you look into next year. The pricing, particularly in automotive,
has been quite benign for the last three years, owing to the chip shortage, but I was just interested to know if you saw any pressure from Tier 1s
then OEMs to squeeze pricing into next year given that they're now facing quite severe margin pressure? Thanks.
Question: Robert Sanders - Deutsche Bank - Analyst
: And just a question for Rainer. Could you just talk about your gross margin impact from underutilization? I mean, what would it being your gross
margin if you had 100% utilization? And what is it now, your utilization? Thanks.
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JULY 26, 2024 / 8:00AM, AMS.S - Half Year 2024 ams Osram AG Earnings Call
Question: Robert Sanders - Deutsche Bank - Analyst
: So what are utilization do you assume in your 15% plan, just so I understand? Thanks.
Question: Sandeep Deshpande - J.P. Morgan Securities plc - Analyst
: Yeah, hi. Thank you for letting me on. My question is, clearly, you've got strong design wins in the consumer space in the second half of the year,
which is helping the revenue ramp up into the second half of the year. I mean, I think at the midpoint, it's about EUR60 million that you're seeing
an improvement. Is this all mostly driven by the consumer side with autos being soft and industrial deals? That's my first question.
And my second question is, regarding your facilities in Malaysia, where are you at this point in terms of resolution on those facilities that the
micro-LED facility in Malaysia and what are the plans there? Thank you.
Question: Sandeep Deshpande - J.P. Morgan Securities plc - Analyst
: Just a quick follow-up to that first one. Is there any potential that this equipment that you're being forced to take, which you cannot cancel has
any other home that you can sell this equipment into?
Question: Jnrgen Wagner - Stifel - Analyst
: Yeah. Good morning. Thank you for taking my question. On China, where you have been historically very strong, how do you see the competitive
environment currently evolving as we read a lot about local sourcing in China? Thank you.
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