Financial PerformanceTotal Free Cash Flow of $970 million may see further pressure even after capital expenditure cuts and inventory sell-through, which means the company may have to rely on credit to fund $1 billion per year in dividends.
Inventory LevelsDirect customer inventory continues to be high and remains the primary issue, with low visibility as lead times are low, bookings are soft, and backlog started out lower for the March quarter.
Market DemandThe company continues to experience weak end demand attributed to elevated inventory across most end markets and products.