Power Integrations (NASDAQ:POWI) shares were down more than 2% today following the company’s reported Q4 results, with revenue of $124.8 million missing the Street estimate of $125.55 million. EPS of $0.48 came in better than the Street estimate of $0.46.

The company expects Q1/23 revenue to be in the range of $100-110 million, compared to the consensus of $127 million.

Despite a rather dire near-term outlook, the company reiterated its belief that it expects Q1 to represent the bottom of the cyclical downturn as it sees a significant amount of inventory digestion in Q1 and the ability to ship much closer to true end demand thereafter.

Additionally, management expects a combination of lessening inventory burn, share gains and its typical FIFO cyclical behavior to lead to a strong rebound in sequential growth from the Q1 bottom.