Great write-ups on here from various posters. One of the things I'm trying to get my head around is what is happening with AD8's customers. Apologies if this has already been posted and I missed it, but there is usually some colour in the earnings transcripts of some of the OEMs that AD8 supplies. The tl;dr seems to be that they over-ordered chips and then customer spending slowed so they are going to spend the next year or so trying to wind down inventory which is basically what AD8 is saying. Here's a recent Yamaha transcript. It seems like this could be a reasonable way to get at least a rubbery feel for where to expect demand is heading.

Now let me talk about the other financial figures. Here is the balance sheet summary. As of the end of March 2024, the inventories rose to a noteworthy level. This is especially due to the inventory of parts staying at the high level. To cope with the semiconductor supply shortage triggered by the pandemic, we raised the level of the stock at hand with the front-loaded order placements, but then the sales volume decline. So we were left with the extra pile of inventories.

As of the end of September 2023, the inventory was as high as JPY 176.8 billion, but we lowered it by a little over JPY 10 billion by the margin. Throughout this fiscal year, we would like to lower the inventory level further down to JPY 142 billion, as described here.

The inventory issue can be seen here. (numbers are in JPY)

Roland Corp has a similar vibe

The nice thing is these guys report quarterly, so we've got a good way of peaking a bit into the future. Once we can see inventories falling back to where they were historically we know they have more or less destocked and will revert to more usual buying patterns (that's the thinking anyway).