Hello, and welcome to the Third Quarter Earnings Conference Call for Amphenol Corporation. [Operator Instructions] At the request of the company, today's conference is being recorded. [Operator Instructions] I would now like to introduce today's conference host, Ms. Diana Reardon. Ma'am, you may begin.

Thank you. Good afternoon. My name is Diana Reardon and I'm Amphenol's CFO. I'm here together with Adam Norwitt, our CEO, and we'd like to welcome everyone to our third quarter call. Q3 results were released this morning. I will provide some financial commentary on the quarter, and Adam will give an overview of the business and current trends. We'll then have a question-and-answer session. The company closed the third quarter achieving strong growth and beating the high end of the company's guidance. Sales were $1,033,000,000 and EPS, excluding the effects of one-time items, was $0.81, both new records for the company. On an as-reported basis, EPS was $0.79 and included a one-time charge of $0.05, relating to the impact of the previously reported flood at the company's New York facility, partially offset by a $0.03 benefit relating to a reduction in tax expense from the completion of the audit of certain prior year tax returns. Sales were up 9% in U.S. dollars and 7% in local currencies over the third quarter of 2010. From an organic standpoint, excluding both acquisitions and currency effects, sales in Q3 2011 were up 5% over last year. Sequentially, sales were up 1% in U.S. dollars and 2% organically from Q2. In comparing Q3 to the midpoint of the company's guidance of $1,008,000,000, sales exceeded guidance by approximately $25 million. Sales in the Mobile Devices market were particularly strong, growing over 20% sequentially as demand previously planned for the fourth quarter was pulled forward by certain customers. This was partially offset by softness in the industrial market, particularly in Europe, reflecting weaker economic conditions and by a reduction of about $11 million as a result of the previously announced flooding at the company's New York facility, which resulted in limited manufacturing and sales activity…

Thank you very much, Diana. And I'd like to add my own welcome to all of you on the phone today at the time of our third quarter earnings call. I'm going to spend a few moments to highlight our third quarter achievements that Diana has just detailed. I'll discuss the trends and the progress in our served markets, and then I plan to make a few comments further on the outlook for the fourth quarter. The third quarter was a record quarter for Amphenol with orders and sales again in excess of $1 billion. We are very pleased that despite increased uncertainty in the worldwide economy, we were able to exceed the high end of our guidance in sales and EPS, with revenues growing 9% from prior year and 1% sequentially to a new record $1,033,000,000 and with EPS reaching a record of $0.81, excluding the one-time items. Although we continued to face significant cost challenges in the quarter, the Amphenol management team executed very well in the quarter, achieving industry-leading operating margins of 19.3%. We're particularly pleased that we were able to produce net income of 13.4% of sales, which is a clear indication of the financial strength of Amphenol. We also generated record cash flow of $184 million, which was used in part for the continuation of our stock buyback program. These excellent results in the third quarter are a direct reflection of the strength as well as the discipline of our agile and entrepreneurial management team. I'd like to make a few comments on the flood recovery efforts. Diana discussed some of the specifics of the financials of the flood. As announced on September 8, we experienced a severe and sudden flood in our Sidney, New York military/aerospace factory, which resulted from the back-to-back impacts of…

[Operator Instructions] Our first question is from Wamsi Mohan, Bank of America.

Adam, I was wondering, given the heightened economic uncertainty that you referred to, could you speak a little about the linearity in the quarter? And any color by end market and geographic region will be especially helpful.

Sure. I mean, I think that there was no real special unique linearities to the quarter. Obviously, in a third quarter, September tends to be a bigger month and it was still a bigger month. I mean we had excellent overall results for the quarter. I think what we did see was in August, whether that was related to politics or economic news or otherwise and continuing to September, that customers just became much more cautious. Again, are they reading the newspapers? Are they seeing what their end-customers say? There was clearly more caution coming from customers starting in that time period. Relative to the regional -- our regional performance, you can imagine that Asia was very strong in the quarter. I mean it grew fabulously on a year-over-year basis. That's where a lot of that Mobile Devices business is consumed. And Europe did also very well in the year-over-year basis in the quarter, given our strong performance in automotive. From a sequential standpoint, we really saw growth particularly in Asia. Again, not surprising given the strength of the Mobile Devices market.

Adam, and as a quick follow-up, was the pull-in in Mobile Devices really specific to 1 or 2 customers, or was it more broad-based?

Yes, I mean, I think we're not going to comment about one specific customer or another. But I can tell you that there were certain programs where, clearly, they were buying product with anticipation of sales levels, which whether that appeared or not is unclear. But the amount of product that was bought from us in the third quarter is clearly not going to repeat into the fourth quarter. Whether that is because they produced more, they gathered more components or otherwise, we certainly saw -- with a few programs, in particular, that there was more buying in the third quarter in anticipation of what maybe customers thought would have been better results than in the end they got.

Amit Daryanani, RBC Capital.

A couple of questions from my side. One just on the military/aerospace side, looks like about a $18 million impact from the flooding issues. With the assumption that those end-customers are able to get the products they need through their own inventory channel, should we expect that Amphenol is able to recover revenues in the first half of 2012?

Yes, Amit. That's a very good question and, certainly, we would anticipate to be able to recover those revenues. We're very, very pleased how in reaction to the flood, our distribution partner as well as our own internal operations, some sister divisions around the world, other factories have responded just tremendously to keep our customers whole. But you can imagine that we have certain also proprietary products, which we have certain capacity levels of. And that will take some time to catch-up to and our customers are being very understanding. If we look towards the next 6 months, we -- our goal is certainly to get those sales back over such a time period. Does that come all in 1 month or 2 months or 1 quarter? It doesn't necessarily come that way. It is a very complex initiative to bring that factory back up. We have an outstanding distribution channel, who is able to create an excellent buffer when necessary, and has really been able to do that. I mean the thing that we are just most proud about here is that none of our customers have really had any complaints to Amphenol about how we've handled this. I have personally visited and spoken with many of those customers, where we had critical products ongoing, testing new product ramps happening. And the team up in Sidney just did such a fabulous job to prioritize those things, which are so critical to the customer. We had machines running 3, 4 days after the flood for certain products, which were very, very critical to have for customers. Others that we knew the distribution channel could support, those were ones where we were able to prioritize those, a little less important than the most critical sole-source products. So I think the simple answer is yes, we would anticipate over the course of the next kind of half year. But is that exactly a half year? That is impossible, really, to pin down.

Fair enough. And then Adam, maybe you could just talk a little bit on the M&A side. I think 2011 has been relatively quiet so far. Just from your experience, given the macro uncertainty, do you expect kind of smaller companies to be more open to an acquisition at this point? Are you going to wait to see how the macro shakes out before they decide to do it?

Well, it's interesting. We obviously had that same topic in consideration during the downturn in 2009. And I think what we saw in that downturn was those companies who are not going to -- who don't need to sell are not going to sell. At the same time we made and we continued to make acquisitions in every economic environment. We've made one acquisition this year with Sylumis. We continued to have a strong pipeline. And I would not tell you that because whatever turmoil is happening in the world that we have seen owners retrenching, far from it. I think we have continued dialogues that are there are, and which we would expect over time to be able to complete some acquisitions. And we're very excited about the pipeline. There's a wide variety of companies and a wide variety of industries and a wide variety of regions. And again, how to get those closed, at what time period, that is something that we work very hard on. But in the end, have not really the ability to pin it down to a certain day. Do multiples change in such an environment? Again, our experience in the last -- in the downturn of 2009 was that yes, you saw certainly some more reasonable outlook on multiples. I think in this environment, we haven't seen really unreasonable multiples being talked about by at least the companies that we talk to over the last couple of years. So I don't anticipate any significant changes, given today's environment.

Jim Suva, Citi.

So the first question I have is on the defense softness. We all know in Washington DC, everybody has their own special interest and agendas to get across. Do you think that we're at a level now of stabilization in this business and visibility remains more stable, or do you think that it can continue to get softer? And is it mostly just OEMs kind of sitting around, not sure where the appropriations are going to be? Or can you kind of help us out what your discussions and visibilities are like and what type of phase are we at as far as stability or even getting worse?

Sure. I think we are still in what I would call an uncertain but stable environment. Let me put it that way. I mean, clearly, there is this sword that hangs over the whole military industry on, I think it is November 23 or 13, whatever the date of the super committee deadline is. That is something that is kind of out of everybody's hands. Nobody knows what they talk about inside the room. And at one point, hopefully, they will issue a report and they will come to an agreement. Whether that happens, I can tell you that customers in the military industry don't have a tremendous amount of optimism that a committee of 12 people, 6 from each party, will eventually come to an agreement. So I think that, that continues to hang over people's heads. At the same time, we saw in the quarter and we continue to see that the military industry has not just ground to a halt. There are still programs being funded. There are things being made. I mean, we continue to have a very, very significant sales into that market. And yes, it was down on a year-over-year basis, certainly impacted by the flood, but also impacted by these concerns. But we still see a lot of programs that are ongoing. And what gives me optimism for the long-term, Jim, is even with that sword hanging over people's heads from a governmental and a congressional standpoint, the drive for new designs and new electronics and new functionalities, we have not seen that slow down whatsoever in terms of the programs and the type of engineering challenges that we see. And so I think from that perspective, our belief that long-term, the proliferation of electronics into this market is going to allow a significant offset to whatever budgetary pressures are going to come, we still subscribe very much to that conviction because of what we see with our customers, where they are, continue to innovate and to develop new technologies everyday of the week.

Great, and maybe a follow-up question for Diana. During the conference call you mentioned that this is your second flood in 5 or 6 years or whatever, which is truly unfortunate and your team's done a great job at recovering. You mentioned that there's going to be -- you're looking at potentially a new facility there. And can you just help us as investors, put our arms around is -- are there transactional or transition financial items that we need to be aware of such as facility qualifications or duplicated operating, running operations or yield issues or timeline? And do you really need to like kind of earmark some -- a fair amount of cash for that? Or how should we think about that additional facility and impact to the financials?

Sure. I don't think, Jim, we anticipate any significant negative financial impacts outside of the ones that we mentioned relative to the losses associated with the flooding itself and the loss of sales, the sales we expect to make up at some point during 2012. I think Adam actually was the one that mentioned this facility and the fact that we are working very closely with government in the state to find an appropriate location and also to get support for a project that would help us to relocate the facility. We do not anticipate a significant negative financial impact. There may be some costs associated from a capital expenditure perspective. But, again, in the grand scheme of things, we would not expect this to be a significant financial impact on the company, and feel that some expenditure relative to the risk of potentially another flood, given the fact that we've had 2 in 5 years would -- makes this well worth the effort on our part. We do expect to get a substantial support from government on this. These are -- this is an excellent facility that produces high-tech products with a very, very heavy skilled workforce. And so the importance of the facility and the employment to the state is, as you can imagine, is as important to them as it is to us. And so we expect a high level of cooperation and support and quite frankly, really look forward to being able to transition the facility to this new location. I don't know, Adam, if you want add anything to that or if that's...

Yes, I mean the only thing that I would say in addition, is we had this flood in 2006, which was a terrible event. On the side, we have become real experts at dealing with these things. And so I think our organization, they really know how to deal with the flood. We're not going to ever go through that again though in Sidney. One of the things that we did do at that time was we took the decision to move essentially our whole industrial business out of Sidney, New York and that was an outstanding move. That was why our industrial business essentially was not impacted by this flood. That was one of the mitigation efforts that we took. This time, we are going to continue to make sure that our customers and our people, our staff are not put at risk from a flood. I agree with Diana. This is not going to be any real meaningful expense to the company. We're going to have tremendous support, we anticipate, from the local government. And our organization is going to rise and create an even better operation for the future than we ever imagined before in support of our customers, in support of the high-technology products that are developed from this company.

Our next question is from Matt Sheerin, Stifel, Nicolaus. Matthew Sheerin - Stifel, Nicolaus & Co., Inc., Research Division: Diana, so just question on the margins, looking at your sales and EPS guidance and your share count guidance, it looks like you're looking at operating margin decline of about 100 basis points quarter-on-quarter. Obviously, the lower volumes will impact the margins. How much of the impact will be from the additional headcount reductions? Because I know you had those costs the last couple of quarters and the expectations that was going to go away. Now, obviously, you're doing some more cuts. So could you tell us sort of what that ballpark is going to look like? And then on the material side, I know that's been a headwind for you in the last few quarters. We're seeing material spot prices of things like copper come down. Would that start to benefit you and when would that be?

Sure. Maybe starting with materials first. I mean, it certainly is true, Matt, that we have seen over the past few quarters this year, certainly, some negative impact resulting from this discontinued pressure on commodities, particularly in our case on the interconnect side with gold. And then, certainly, also copper and aluminum are important, particularly on the cable side of the business as are plastics. I think that it's certainly fair to say that there have been some improvements in certain of those in the last couple of months. Gold, unfortunately, is still higher than it would have been when we had closed Q2. I think that in terms of copper and aluminum, which have done better during the last quarter, I mean, if those can continue to stay at or come down from the levels that we're at, today, we would expect probably to see some improvement in the cable side of the business towards the end of the fourth quarter and then as we move into next year. As you know, we carry some inventory level of these items, and so we don't get an immediate benefit. To the extent that from the interconnect side of the business, to the extent that, again, as we look into next year, we get some improvement in both demand levels in the commodities maybe, including gold, would start to get a little bit better. I think that we would also hope to see some positive impact on the interconnect side of the business. So I think from a commodity standpoint right now in the immediate short term, we don't see a large benefit. But I think it's very fair to say that things are moving in a more positive direction. Hopefully, those continue. In terms of the restructuring, you're absolutely right…

Yes, I think that this would be more on the communications side of the business. I mean, the most significant sequential decline is in the Mobile Devices market in Q4, so -- and this does tend to be a labor-intensive business and so this will certainly have a significant action to taking there, and also some of our wireless infrastructure units in addition to that, we'll have some action there. I think the majority of the actions in the Defense business have been taken. There may be a few smaller actions. But I would say it's predominantly in the communications side of the business.

Steve O'Brien, JPMC. Steven J O'Brien - JP Morgan Chase & Co, Research Division: Just want to go back to perhaps the Mobile Devices segment and in the context of potential for near-term maybe headcount actions. Is there any headwind, I guess, to the business from customers diversifying their suppliers here? And with the clear trends Adam pointed out in terms of Mobile Device and smartphone penetration growth and proliferation, would the headcount reductions be indicative of an outlook for softer demand, maybe lasting beyond a couple of quarters?

Look, I mean, we made headcount reductions in the moment. And so I think what has been the hallmark of the Amphenol organization over many, many years has been that we don't adjust our resources with an expectation of what the future is. We adjust our resources based on the reality of what faces us today. And clearly, we have a sequential reduction of more than 20% in the Mobile Devices market, which we've -- both Diana and I mentioned, and that is going to lead the general managers to run the businesses within that Mobile Devices market to take immediate and significant actions. And I think that is exactly the case. If that business comes back and when it comes back, they will add the resources using that kind of accordion-like way of doing things that we have always done. And I think that is just the hallmark of how we run the business. You should not take away from the fact that we're making headcount reductions in one or another segment as a statement that we are -- I mean, to recharacterize what you say, we are losing share in that market. That is certainly not the case that we see. Just again to recharacterize it, we saw in the third quarter a very significant pull-in of demand, which clearly now comes out -- was demand that maybe otherwise would have been falling into the fourth quarter. And we, obviously, had the resources in place to satisfy that demand. And these were significant pull-ins, whereby, customers hit us with orders that we didn't expect to come, and we're able to ramp up and satisfy the demand from those customers in a very, very significant and effective fashion. And when you have that than to reverse course, we're going…

Sure. No, I mean, clearly this is a case or we have also seen those same trends that you mentioned here. We see it from both the OEMs as well as the operators because we do business with both parts of the chain in the wireless infrastructure market. And I think what has happened recently, I mean, whether you have some big mergers that are sort of stalled, whether you have customers being more conservative about certain build plans, clearly, the build plans and the installation plans of operators, in particular, in developed markets have not met the expectations of the OEMs. And we have really seen that on a global basis, that conservatism. What does it mean in the end? I think I am not the only one on the phone here today, who is just intensely frustrated by the coverage of my phone when I'm driving around the highways of the Northeast. And there is clearly a significant pent-up demand for both coverage and capacity. The new Mobile Devices, whether those be tablets or smartphones or whatever, Android, iOS, all of those formats, those are driving levels of data and levels of capacity restriction in these markets on a worldwide basis. And so we believe that there's no question that at one point, you’ve got to have these things built. And what we hear from our OEM customers is certainly the same story, which is that they are hearing from their operator accounts that, yes, there may be some pause here. We're doing whatever, whatever it takes to get a merger done, or we are doing whatever it takes to sort of preserve capital in an uncertain time. They are going to have to install these base stations. They're going to have to install lot of them. The beauty of the new type of base stations that the leading equipment manufacturers have created and where we have worked with them on new technologies, is these new base stations are much smaller. They're much more flexible and they allow the operators to more quickly make these installations. These are not big refrigerator boxes from the past. They are much smaller. In that sense that you can get coverage in a much, much quicker fashion in certain places. And look, I know very well when I go home and I barely have cell phone coverage anymore that they're going to have to change. They're going to have to install these base stations. When that comes, does it come in the first quarter? Does it come in the second quarter? This is very hard to predict. Only those in the boardrooms of these operators know that. But clearly, it will come because it is getting worst and worst around the world in terms of coverage. And the only answer is to put in place new and more of these base station platforms and we're very, very well-positioned on those systems.

The next question will be from Amitabh Passi from UBS.

I just had a couple of questions for you. Adam, you talked about some levels of caution around inventory levels in the IT Datacom wireless infrastructure markets. Any sense how long any sort of inventory digestion takes place? The last time we went through this in 2010, I think, it lasted for 2 or 3 quarters particularly in IT Datacom. Just wondering if you will venture, if you have any sense in terms of is this a 1-quarter phenomenon or could it drag out?

Yes, I -- unfortunately, I'm not going to be able to give you a great answer because I hope it is a 1, 2-quarter phenomenon. What we saw in the IT market very clearly was that going into the quarter, customers had certain expectations about what would normally be growth going into the fourth quarter. And I think you've seen in the many earnings releases that have come out over the last several months that those expectations have been moderated. But they already drove the supply chain to put in place the capacity for that uptick in demand, which in the end, does not happen for those customers. And so, is that something that gets consumed in 1 quarter? Does it get consumed in 2 quarters? Certainly, I would hope it not to last much longer than 2 quarters. It depends in the end on what the final customers take. An inventory position is only healthy, given a certain level of demand. And so to the extent that our customers see a level of demand that is kind of a more normal or flat demand from the third quarter going into the fourth quarter, then I would hope that, that would be a more positive outlook. If they see further caution from their customers, from the government, from the financial services, that other big customers, then you could potentially have more time for an inventory correction. I would hope this is not more than a 1, 2-quarter phenomenon.

Got it. And just on the topic of inventories, how would you characterize inventories at your distributors at this point?

I think those levels are actually pretty healthy. Certainly, with the flood we have seen some of those -- some consumption of inventory on the margin is not such a huge impact. But the beauty of having inventory in the distribution channel is that in a time of an emergency like this flood that they are able to consume some of that inventory, and then it's up to them to replenish it. Those levels today appear to be largely in line with historically comfortable level for our distributors.

Sherri Scribner, Deutsche Bank.

I was hoping to get a little bit of detail on your expectations for growth going forward. If we look at the midpoint of the guidance for the December quarter, it implies a revenue decline year-over-year of about 2%. And I know customers are being cautious, but we haven't seen a year-over-year decline since the recession. So I wanted to get your sense of what your expectations are, what you're hearing from customers, what you're bookings are for the March quarter now as we move into 2012 and if you think this decline in revenue continues?

I think at this point, we really are not going to talk about guidance for 2012 or either for the full year or for the first quarter of 2012. I think that in the prior question, I mean, Adam did talk a little bit about how long we've sort of -- things that might take -- or some of the excess inventory to work its way through. I think that in terms of the year-over-year comparisons in Q4, I think we do have a phenomenon, certainly, in the wireless devices market, where we're experiencing a quarter that we believe has if you want somewhat artificially lower level of demand because of this kind of Q3, Q4 phenomenon that we saw. And I think that's driving to some extent some expectations of year-over-year decline that would be more temporary in nature. But I think at this point, it isn't that we can really talk about our expectations for 2012.

Okay. And then, Adam, I know in the past, you've given some detail on the Aerospace and Military business. I think you commented that this quarter, the commercial aerospace piece of that business grew in the double digits. In the past, I think you've said commercial aerospace was about 20% of that total aerospace and military budget. Has that number changed and can you update us on that?

Sure. It was -- as you can imagine with the performance in the military and the double-digit growth in commercial air, the proportion of that military/aerospace market that is represented by commercial is a bit more -- now I’d say it’s more like quarter of the market, if not, even slightly more than a quarter of the market. So we're very pleased with that development and we think that, that's something that's going to, long-term, be very favorable for the company. If we look at commercial air, as I mentioned, it grew very strongly in the quarter. And if you take out the impact of the flood, it would have grown somewhere around 20% year-over-year. So very, very strong performance in commercial air. And we have continued a very positive outlook for that commercial air segment. The number of new planes, the degree of kind of the electronic architecture changes in these new planes is really just fabulous. I had the good fortune to be crawling around some of these planes over the course of last month or 2. And it is really just not only the new platforms and the amount of electronics in them, but the vision of our customers for the future of electronics, whether that be in the fuselage, in the avionic system, even in the engines, which have been something that long-term has not changed so much. There is just a real drive to wherever possible implement electronic functionalities to drive either fuel efficiency, either a simplification of the control mechanisms for the pilot, either to drive a better passenger experience. And there's really just phenomenal things that our commercial air customers are not just implementing today, but even considering long term for the future that creates just an amazing level of opportunities for the company. And we are really capturing that with technology. When I go out and I sit with the engineers of some of these customers and really talk about technology, that's where you get so excited because the new innovations that we are driving for those customers are real game changers in terms of allowing those customers to do things that they didn't know they could do in the past, whether that is bringing electronics closer to harsher environments in the plane, whether that is bringing new functionalities to the passengers. Those are all things that -- the interconnect that we are innovating are helping to drive those customers to create those new experiences. And I think that's going to serve us very, very well in the future for commercial, and we're really excited about that market.

The next question is from Brian White, Ticonderoga.

Adam, when you look at the guidance for fourth quarter here, I know you've had some pull-ins, but third quarter doesn't seem to be any better in seasonality. When we look at fourth quarter, this is even a worse outlook than you gave in October 2008. So my question is does this feel like we're in a downturn?

Well, look, I mean, let's take the second part first, Brian, I appreciate very much the question. October of 2008, if you recall, we saw sort of a normal environment. And then I think it was at the first week of December, Diana, when we really saw November orders kind of fall off a cliff back in that time period, and that's when we had to unfortunately issue a press release at the time to say that those expectations were not going to be there. I think this is a little bit different. We have not seen everything fall off a cliff here. Certainly, we see that there are a lot of questions among our customers. People are nervous. People are nervous about the environment. They are nervous about the political, the economic environment and we did see this very significant shift between the Mobile Devices from the fourth quarter to the third quarter. If you take that shift away, and I think Diana went through the numbers, we would be -- if you take currency and that shift away, this would be something like a 4%, I think, reduction from Q3 to Q4. Certainly, not what we would like and not what we would normally see seasonally. And I think that difference is really the environment that we are facing today and that many of our customers are facing, in particular, in the communications market, as we talked about, in wireless infrastructure, in IT as well as in the European industrial market, which is one where, clearly, the events in Europe are causing many customers in some of the biggest industrial zones of Europe to tighten their belt, so to speak. They don't want to get overextended until they really know what's going to be happening in Europe.

And our next question will be from Craig Hettenbach, Goldman Sachs.

Yes, just a follow-up on the industrial end market, the expectations for slight growth in Q4, a little surprising, given some of the dynamics in terms of demand, and focus on the channel to bring inventory down. So I was hoping you can provide a little more color in terms of any specific programs or what gives you the confidence in the growth in industrial.

And again, thank you very much for the question, Craig. Appreciate it. I mean when we will look for the fourth quarter, you would normally have a seasonal growth coming out of the third quarter. And we did see that the industrial business was down sequentially in the third quarter by some 10%. And because the industrial business does have a significant component in Europe as well in North America, that seasonal impact can be -- not insignificant going to the fourth quarter. I think we feel very good about our position in that market. Recall that our industrial business is very, very diversified. It ranges in things from high speed rail to alternative energy to oil and gas exploration to factory automation, industrial instrumentation, heavy equipment, I mean, lighting. I could go on for a long time about these sub-segments. And I think we still see in many of those markets, especially those new markets like alternative energy, like lighting, where there's a big transition happening in the nature of lighting and outdoor and harsh-environment lighting. Those are areas where we continue to see that there is momentum among the customers, and there's still great opportunities for growth. I think you take those kind of new markets in industrial, in addition, there's maybe a more muted, but still a little bit of a seasonal uptick that comes in the fourth quarter. And that in the end, results in us having that outlook that we gave.

Okay, if I could, just a quick follow-up for Diana. You mentioned the 5% headcount reduction in Q3, a rough range in terms of what you're putting together for Q4 here.

Yes, I mean I think that we would expect something in the same sort of range is going to be appropriate in Q4. I think, as Adam said, these actions are very much done on a grass-roots level and each business will adjust appropriately for the volume and obviously, some are more impacted than others. But we would expect and have anticipated something around the same size as what was implemented in Q3.

William Stein, Credit Suisse. William Stein - Crédit Suisse AG, Research Division: I think investors tend to be very interested in the inflection point. So Adam, you talked about seeing how customers were getting more conservative in August and September. We're about 3 weeks into October. Are customers getting more conservative, more nervous, about the same? Or are you seeing things start to bottom out with regard to the kind of attitude and approach to ordering and forecasts?

I think with regard to the mindset of the customers, I wouldn't say that there has been any incrementally more negative mindset coming just into the first few weeks of October. I mean, look, the situations that gave rise to that are clearly not resolving themselves automatically. And so if you're a military customer, do you feel better today than you felt 3 weeks ago, probably not, but I don't think you feel lot worse either. I think you're going about your job, you're still building the programs that you got to build. I think relative to the IT market and the wireless infrastructure market, it's a similar story. I believe that the customers there, some of them may, just now, be coming to the realization, "Hey, we're not going to hit that step-up that we thought we were going to get." And so, did that translate into a slightly more negative view today than 2 months ago. I would say in those markets, maybe we've seen those revisions more recently in terms of the mindset, only because they clung to the hope that they would have that real big sequential step-up that they all anticipated. And now, it seems to be coming through a realization that's not going to happen with how long it's taking, the governments of the world to make resolution to some of these uncertainties, and to really help to drive the economies in a better direction. I think that's causing some to just sort of say, "Well, look, we're going to -- we're not going to have that step-up, so let's adjust accordingly." William Stein - Crédit Suisse AG, Research Division: Great. A quick follow up, if I can. Diana, in the past, I think many times, you said that companies preferred use of cash is a value-creating M&A. Is that still the case and what's the approach to buybacks going forward?

Sure. I think that is absolutely still the case. I mean, we just continue to feel that this is certainly the best use of the company's financial capacity. I think that we all continue to work very hard on the acquisition program, and would hope to be able to use a majority of our capacity for that as we move ahead. We have bought a fair amount of stock back this year as well, I think, about roughly 10.5 million shares. So far, this year, counts down to about 167 million at this point, also, we believe is a good use of the capacity of the company and is a way, certainly, to return value to shareholders. I think we also will continue to consider the dividend level of -- on the stock, and I think that we'll continue to look certainly at all 3 of these. But clearly, the acquisition program is the number one priority as far as the management team is concerned.

The next question will be from Shawn Harrison, Longbow Research.

I'll try to make it brief. 2 questions. Just first, with the headcount reductions, the 5% in the third quarter, was that incremental to the 4% announced for the second quarter, so you would have a double-digit headcount reduction over the past 3 quarters in a cumulative amount?

Yes, that's correct.

Absolutely.

Okay, and then the second question is it seems as is a few of your peers are just trying to raise prices at least through parts of the supply chain right now. Do you think you're able to raise prices in this environment, or is it more of an environment where you hold prices steady and then you hope commodities help you out in early 2012?

I mean, look, when you are in an uncertain market, raising prices at least to OEM customers is not an easy thing to do. And I think we took a lot of pricing actions early in the year. And as the market environment became more mixed and then later became more certain, the ability to execute on those price increases, especially with OEMs, became more of a struggle. I think relative to the channel, as you correctly point out, distribution is one area where you can raise prices a little bit more easily. We do this on an ongoing basis. We don't do it monolithically. So you may not hear about it in a way that says, "Well, Amphenol want and raised prices monolithically across distribution channel" That's just not how we operate. Our price increases go out, really, on a product or a technology basis, and those are an ongoing -- throughout the year, pricing exercise with our distributors and we will continue to follow that as well. Remember, distribution represents only some 14%, 15% of our sales and so that's not the big issue. The big issue is how you go about getting price increases with the OEMs. We will be disciplined on price. One of the areas that is the most essential for price is actually new product development. And as we look forward, new products for Amphenol consistently have represented more than 20%, nearly 25% of our sales for a number of years. And that is a focus that allows us to get pricing in the end, not by changing the price on a certain part number, but by having more functionality embedded in the product, creating more value for your customer. And, thereby, they're willing to pay you a comparably higher price. But it's an apples-and-oranges comparison in the eyes of the customer. And so at the end of the day in a market like this, innovation is the real answer to that pricing. We're going to drive that innovation very, very hard going forward. Thank you very much, Shawn. And I'd like to thank all of you for your time today and your attention and wish you all a very, very good completion here to October and going into the full year. We'll talk to you again in January. Thank you.

Thank you.

This concludes today's conference. Thank you for attending and have a nice day. Thank you.