Dialog expects inventory days to rise in first quarter after fourth-quarter drop

FRANKFURT (Reuters) – Dialog Semiconductor expects inventories of its products to grow in the first quarter in terms of the number of days’ demand covered after a decline in the fourth quarter, CFO Wissam Jabre told analysts on a conference call.

Inventory cover fell by three days to 61 days in the fourth quarter from the third quarter, Dialog said in a presentation on its fourth-quarter results.

Inventory buildups typically occur in the supply chain when demand is not keeping pace with production.

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