Melexis NV (OTCPK:MLXSF) Q3 2024 Earnings Conference Call October 30, 2024 5:30 AM ET

Company Participants

Marc Biron – Chief Executive Officer
Karen van Griensven – Chief Financial Officer

Conference Call Participants

Sandeep Deshpande – JPMorgan
Guy Sips – KBC Securities
Ruben Devos – Kepler Cheuvreux
Francois Bouvignies – UBS
Marc Hesselink – ING
Michael Roeg – Degroof Petercam
Robert Sanders – Deutsche Bank

Operator

Good day. And welcome to today’s Melexis Q3 2024 Results Conference Call. Throughout today’s recorded presentation, all participants will be in a listen-only mode. Later, we will conduct a question-and-answer session. [Operator Instructions]

And now I would like to hand the call over to our host, Marc Biron, CEO. Please go ahead, sir.

Marc Biron

Thank you. Dear audience, thank you for joining the Melexis Q3 2024 earnings call. In Q3, our sales reached €247.9 million, which is within our guidance. It’s in line with the Q3 of last year and it represents a 1% increase from Q2 to Q3 this year.

This being said, next to the solid sales in Q3, discussions with our automotive customers starting in September indicate that, based on their current order book for the balance of 2024, they would end up with higher inventories than desired.

During the past couple of months, we have already had announcements about the auto industry, with global car production down by more than 5% in Q3 2024. Our current order book would result in sales for Q4, which is in line with our full year guidance of around €1 billion. However, we have decided to assume this inventory correction at our customers, which will lead to lower sales for Melexis in Q4.

Where we previously worked to avoid bullwhip effect, we now recognize that we would not present it fully and thus we are