VSH
#So first of all as you can imagine, we're closely monitoring the discussions with the US Congress and the American President.
But of course nothing is really definitive yet.
So we would continue to monitor that in that and if became favorable for us we would certainly take advantage of it.
At the moment what I had said in the past is that we were repatriating, it was going to take us three to five years to bring that cash back to America.
So this year we bought back approximately $50 million based on the announcement of last year.
And on the share buybacks, just one moment.
$23 million approximately was used for share buyback.
As a matter of fact, you're absolutely right.
We see supply shortages, even in certain places, especially in semiconductors.
There are many reasons for it, I guess, but as a matter of fact, we see exactly that.
We have seen quite strong orders especially in the fourth quarter, but more so in January.
So it's clear it's true, I cannot see the pipeline replenishing at this point.
There's a lot of request for products.
23%, now you have the real number.
First of all, the biggest effect vis-a-vis our expectations came from two points.
It was the variable margin that was disappointing and this comes from quite a few but adding up inefficiencies in quite a few divisions, which have to do with lower volume.
You've seen our inventory decrease in the fourth quarter which is mainly in MOSFET but also happened in a few other segments of the business.
And then of course also we had a less favorable product mix.
We saw it in a way coming and I commented on it in the last telephone conference, but it turned out to be more severe this change to a more normal mixture.
Remember in quarter three we had an excellent mix and it normalized more than we thought.
This was the main reason.
Then of course we had inventory decline, inventory reduction which was not planned.
We had supply problems from really one of our suppliers, didn't help us very much.
And then of course we had the sales came in slightly below the consensus you have seen, which was our expectation, also.
These were the three major reasons.
Yes.
About 1.3 in January.
1.3.
Chinese year is every year, that means it was really strong, really strong and there are some shortages of supply in the market mainly at semiconductors.
So the currently approved program by our Board of Directors runs until May of 2017.
And of course they would have to evaluate the situation and determine if they would like to prolong that.
I think it's both.
It's really across the board for Vishay, indeed we had successes, finally I may say after trying for quite a few years, measurable successes in the passives which is mainly industrial, some automotive but mainly, both, industrial and automotive.
Otherwise this broad demand for semiconductors which we just have seen in the recent ---+ weeks, really weeks, has to do with certain shortages which I don't want to comment on.
This came as a surprise to us and I would call this a very temporary situation as I see it.
<UNK>, I would hope so, but on the other hand, it's as I said, we regard this shortage as a temporary effect.
Plus most of the OEM contracts have been negotiated and we keep contracts obviously.
As a matter of fact of course, if such a supply shortage would remain in place for say half a year or so then inevitably the whole market will see a less steep price decline, a less of a price decline for sure, always been the case.
But it takes some consistency before we see it.
<UNK>, we historically grew and we have been talking many years.
We grew in the automotive industry and in the industrial industry quite well over years.
I do not believe that we need to further acquisition but I don't want to exclude it either.
It depends, it's an opportunistic business, so if something came about, sensors would for sure be an area where we would look to.
If there was a reasonable acquisition attempt, but I'm talking about acquisition.
I believe in organic growth which we will show again already this year.
And it goes always to the same areas.
It goes to automotive, and it goes to industrial, which are our good markets, our traditional markets anyway, and we do have a good position there.
So maybe I start first with the SG&A.
So you're correct.
We guided to $95 million, which is slightly up compared to quarter four because we had a gain on the disposal of some of the remaining fixed assets when we closed on our in wafer fab in California, it does repeat in Q1 nor in 2016 by nature.
So the estimate for the full year is only $370 million.
It's not a super increase in that sense.
And quarter one is the highest SG&A of the four quarters for 2017.
Yes.
Correct.
Sorry for that.
It didn't help the gross margin item, obviously.
Sorry for that, I interrupted.
Realistically speaking we will still be handicapped to a degree in the first quarter, especially in MOSFETs, only, it's just in MOSFETs we're talking.
The supplier improves, improves steadily.
But you remember, a part of the sales which we made in the fourth quarter was based on stock reduction, inventory reduction.
And this inventory is gone, so as a matter of fact despite the fact the supplier supplies better now and hopefully is back to normal foreseeably, it will take a little time until these constraints will over and will lead to higher sales.
I still see, as was unexpected I must say that, this delivery problems, they were unexpected, but for the moment they are improving but in quarter one we still are handicapped.
No, it's not across the board.
Is not in automotive, but it's all the more consumer-oriented product.
We have at the moment a backlog increases much.
Yes, we do.
Yes, exactly.
Thank you for your interest in Vishay Intertechnology.
This concludes our Q4 call.
