亞德諾半導體 (ADI) 2017 Q2 法說會逐字稿

Good morning, and welcome to the Analog Devices Second Quarter Fiscal Year 2017 Earnings Conference Call, which is being audio webcast via telephone and over the web. I'd like to now introduce your host for today's call, Mr. Ali Husain, Treasurer and Head of Investor Relations. Sir, the floor is yours.

早安，歡迎參加 Analog Devices 2017 財年第二季財報電話會議，本次會議將透過電話和網路進行音訊直播。現在我謹向大家介紹今天電話會議的主持人，財務長兼投資人關係主管阿里‧侯賽因先生。先生，請您發言。

All right, good morning, and thanks, Jennifer. Good morning, everybody. Thank you for joining the Analog Devices Second Quarter 2017 Earnings Conference Call.

好的，早安，謝謝你，珍妮佛。大家早安。感謝您參加Analog Devices 2017年第二季財報電話會議。

So let's get through our disclosures. Note the information we're about to discuss, including our objectives and outlook, includes forward-looking statements. Actual results may differ materially from these forward-looking statements as a result of various factors, including those discussed in our earnings release and our most recent 10-Q.

那麼，讓我們來看看資訊揭露部分。請注意，我們即將討論的訊息，包括我們的目標和展望，包含前瞻性陳述。由於各種因素的影響，實際結果可能與這些前瞻性聲明有重大差異，這些因素包括我們在獲利報告和最新的 10-Q 文件中討論的因素。

These forward-looking statements reflect our opinion as of the date of this call, and we undertake no obligation to update these forward-looking statements in light of new information or future events.

這些前瞻性陳述反映了我們截至本次電話會議之日的觀點，我們不承擔因新資訊或未來事件而更新這些前瞻性陳述的義務。

Our commentary about ADI's second quarter financial results are adjusted for special items. When comparing our second quarter results to our historical performance, special items are also adjusted in the prior quarter and year-over-year results.

我們對ADI第二季度財務業績的評論已根據特殊項目進行了調整。在將我們第二季度的業績與歷史業績進行比較時，上一季和上年同期業績中的特殊項目也進行了調整。

Available reconciliations of these non-GAAP measures to their most directly comparable GAAP measures and additional information about our non-GAAP measures are included in today's earnings release and on our web schedules, which we've posted under the quarterly results section at investor.analog.com.

這些非GAAP指標與其最直接可比的GAAP指標的調節表以及有關我們非GAAP指標的更多信息，均包含在今天的收益報告中以及我們發佈在 investor.analog.com 季度業績部分的網頁日程表中。

As many of you know, we've completed the Linear Tech acquisition about halfway through our fiscal second quarter. And so we've included reconciliations in our Investor page that provide a greater level of detail into our stand-alone and combined results for the quarter. But at a high level, I'll say that Linear contributed $208 million to our non-GAAP second quarter revenue. This number includes $60 million of purchase accounting adjustments that were made for U.S. GAAP purposes and relate to Linear Tech inventory that was in the distribution channel in North America and Japan when we closed the acquisition.

正如你們許多人所知，我們在第二財季中期完成了對凌力爾特（Linear Tech）的收購。因此，我們在投資者頁面上加入了對帳信息，以便更詳細地了解我們本季度的獨立業績和合併業績。但總的來說，Linear 為我們第二季的非 GAAP 收入貢獻了 2.08 億美元。該數字包括 6000 萬美元的購買會計調整，這些調整是根據美國通用會計準則進行的，與我們完成收購時北美和日本分銷渠道中的 Linear Tech 庫存有關。

At the end of the second quarter, there remains an additional $30 million of Linear inventory in the distribution channel, which we expect will be sold in its entirety in the third quarter. We've included this adjustment in our non-GAAP revenue expectations for the third quarter and no such adjustments are anticipated starting in the fourth quarter. And then the last point I'll make, and it's information you should be mindful of, is that the first quarter of our fiscal 2018 will be a 14-week quarter.

第二季末，分銷通路中仍有價值 3,000 萬美元的 Linear 庫存，我們預計這些庫存將在第三季全部售出。我們已將此項調整納入第三季的非GAAP營收預期中，預計從第四季開始不會再有此類調整。最後我要指出一點，也是你們應該注意的訊息，那就是我們 2018 財年的第一季將是一個 14 週的季度。

Okay. So with all that behind us, about to get the show on the road. I'll turn it over to ADI CEO Vincent Roche. Vince's comments on the second quarter are for stand-alone ADI unless he specifies otherwise. And our business outlook for the third fiscal quarter relates to the combined company.

好的。一切準備就緒，我們即將正式開始。我將把發言權交給ADI執行長文森羅奇。除非文斯另有說明，否則他對第二季的評論僅針對獨立的ADI數據。我們對第三財季的業務展望與合併後的公司有關。

Okay. Vince, all yours.

好的。文斯，這都是你的了。

Thank you very much, Ali. Good morning, everyone.

非常感謝你，阿里。各位早安。

Well, it's been a very busy period for ADI, and I'm pleased to share our results with you. Not only were our second quarter financial results stellar, but we completed the acquisition of Linear Tech in March, and our integration work is going very well.

ADI這段時間非常忙碌，我很高興與大家分享我們的成果。我們不僅第二季的財務表現非常出色，而且我們在 3 月完成了對 Linear Tech 的收購，我們的整合工作進展非常順利。

So let's start with our financial results for the second quarter. ADI's stand-alone revenue came in at $1 billion, a 2% sequential increase and a 28% increase over the prior year. These results were above our revised guidance on broad-based strength, and we continue to see signs of a good business environment, particularly in the industrial market.

那麼，讓我們先來看看第二季的財務表現。ADI 的獨立收入為 10 億美元，季增 2%，比上年增長 28%。這些業績超出了我們先前對整體強勁表現的修訂預期，我們繼續看到良好的商業環境跡象，尤其是在工業市場。

Gross margins expanded to 67.6%, which was above the high end of our guidance and the combination of higher sales, higher gross margins and tight control over operating expenses helped expand operating margins to a robust 36% of sales.

毛利率擴大至 67.6%，高於我們預期的上限；銷售額成長、毛利率提高以及對營運費用的嚴格控制，共同推動營業利潤率成長至銷售額的 36%。

In addition free cash flow margins, as a combined company, were also strong at 39% of revenue in the second quarter. As Ali mentioned, Linear Tech was part of ADI for about half the quarter and contributed $208 million in sales on a non-GAAP basis. And we are looking forward to a full quarter's contribution in our third quarter.

此外，合併後的公司自由現金流利潤率在第二季也表現強勁，達到營收的 39%。正如阿里所提到的，Linear Tech 在本季度的大約一半時間裡都是 ADI 的一部分，並按非 GAAP 準則貢獻了 2.08 億美元的銷售額。我們期待第三季能實現完整的季度業績。

Now let me give you some details of our performance by end market during the quarter. Note that my remarks relate only to stand-alone ADI. The industrial market at 46% of sales grew 15% sequentially in the seasonally strong second quarter and continued its year-over-year growth trajectory, increasing 20% over the prior year. Sequential revenue growth was broad-based across all industrial sectors and indeed regions.

現在讓我來詳細介紹一下本季我們按終端市場劃分的業績情況。請注意，我的評論僅與獨立式 ADI 有關。工業市場佔銷售額的 46%，在季節性強勁的第二季度環比增長 15%，並繼續保持同比增長的勢頭，比上年增長 20%。各行業和各地區都實現了環比營收成長。

While business conditions are certainly more positive than they were at this point last year, our success is also the result of smart R&D investments across diverse industrial applications within factory automation, instrumentation, aerospace and defense, and health care.

雖然目前的商業環境肯定比去年同期好得多，但我們的成功也得益於在工廠自動化、儀器儀表、航空航天與國防以及醫療保健等各種工業應用領域進行的明智研發投資。

Over several decades, ADI has carved out a leadership position in high performance signal processing, serving our tens of thousands of industrial customers where applications demand the highest levels of performance both in terms of signal chain and in terms of power optimization.

幾十年來，ADI 在高性能訊號處理領域佔據了領先地位，為成千上萬的工業客戶提供服務，這些客戶的應用在訊號鍊和功耗優化方面都要求最高的效能水準。

In the near term, our industrial customers are excited to gain access to the highly complementary portfolios of ADI and Linear Tech and are even more excited at the future value-creation opportunities made possible by our combination. The automotive market represented 15% of our sales in the second quarter and grew 8% sequentially and 9% over the prior year. Both sequential and year-over-year growth was broad-based across all automotive application areas and was strongest in safety and ADAS applications, while powertrain revenue increased but at a slower pace. We supply thousands of products into dozens of automotive subapplications and are gaining more dollar content as we further automate and electrify. The combination with LT dramatically strengthens our technology offerings in this market and expands additional dollar content opportunities across our very complementary customer base.

短期內，我們的工業客戶很高興能夠獲得 ADI 和 Linear Tech 高度互補的產品組合，並且對我們合併後可能帶來的未來價值創造機會感到更加興奮。第二季度，汽車市場占我們銷售額的 15%，季增 8%，年增 9%。無論是環比增長還是同比增長，汽車所有應用領域均實現了廣泛增長，其中安全和ADAS應用領域增長最為強勁；動力總成收入也有所增長，但增速放緩。我們為數十種汽車子應用提供數千種產品，隨著自動化和電氣化的進一步發展，我們的產品價值也不斷提高。與 LT 的合併極大地增強了我們在該市場的技術產品，並為我們高度互補的客戶群拓展了更多美元內容機會。

The communications infrastructure market, at 18% of sales, grew 5% sequentially and 4% over the prior year. Sequential revenue growth in this market was led by wireless infrastructure applications where we're making very good progress with our RF and microwave and high-speed signal processing and integrated transceiver solutions.

通訊基礎設施市場佔銷售額的 18%，較上季成長 5%，較去年同期成長 4%。該市場營收的環比成長主要得益於無線基礎設施應用，我們在射頻、微波、高速訊號處理和整合收發器解決方案方面取得了非常好的進展。

While we are, of course, only in the very early stages of 5G cellular infrastructure deployment, we believe that our optimized radio signal processing and power management solutions will be a very key driver of growth as channel counts increase and customers move to phased array antennas to make the most efficient use of available spectrum with the highest reliability and performance.

當然，我們目前還處於 5G 蜂窩基礎設施部署的早期階段，但我們相信，隨著通道數量的增加以及客戶轉向相控陣天線以最有效地利用可用頻譜並獲得最高的可靠性和性能，我們優化的無線信號處理和電源管理解決方案將成為增長的關鍵驅動力。

Of course, the wireless infrastructure market is one where Linear largely didn't play, and thus, this market represents an opportunity to drive revenue synergies in the medium term.

當然，無線基礎設施市場是Linear公司之前沒有涉足的領域，因此，這個市場代表著在中期內推動收入協同效應的機會。

On a year-over-year basis, communications infrastructure growth was led by the wireline sector where ADI's customers are benefiting from our precision clocking, timing and control technologies in 100 gig and beyond optical networking applications.

與去年同期相比，通訊基礎設施的成長主要由有線通訊領域引領，ADI 的客戶正在 100 Gbps 及以上光網路應用中受益於我們的精確時脈、定時和控制技術。

And finally, consumer market revenues at 21% of sales decreased 24% sequentially as prosumer applications revenue increased and portable applications revenue came in better than planned. Compared to the prior year, both prosumer and portable applications revenue increased.

最後，消費市場收入佔銷售額的 21%，較上季下降 24%，原因是專業用戶應用收入增加，便攜式應用收入優於預期。與去年相比，專業用戶和便攜式應用程式收入均有所成長。

So while our combined financial results were excellent, our near and long-term outlooks are equally bright. During the quarter, we completed the acquisition of Linear Tech, creating the high-performance analog market leader.

因此，儘管我們合併後的財務表現非常出色，但我們近期和長期的前景同樣光明。本季度，我們完成了對凌力爾特公司的收購，打造了高效能模擬市場領導者。

As we said from the beginning, we're taking a best-of-both approach, combining the best from ADI and LTC to come up with a new operating system to drive long-term profitable growth for our combined company, and I'm very pleased with the progress we've already made. We're optimizing processes across our selling, new product development, manufacturing and operations activities.

正如我們從一開始就說的那樣，我們採取了取長補短的方法，將 ADI 和 LTC 的優點結合起來，打造一個新的操作系統，以推動我們合併後的公司實現長期盈利增長，我對我們已經取得的進展非常滿意。我們正在優化銷售、新產品開發、製造和營運活動中的各項流程。

On the sales side, the integration of our 2 sales forces has brought with it a tremendous degree of excitement, and we've already identified many sales synergy opportunities. On the engineering side, our teams have come together at remarkable speed and have begun identifying product road map combinations that we expect, over the long term, will accelerate our growth. On the manufacturing side, our teams have been focused on ensuring that we meet the upside demand and continue to deliver the highest quality products to our customers.

在銷售方面，我們兩支銷售團隊的整合帶來了極大的興奮，我們已經發現了許多銷售綜效的機會。在工程方面，我們的團隊以驚人的速度走到了一起，並開始確定產品路線圖組合，我們預計從長遠來看，這將加速我們的成長。在生產製造方面，我們的團隊一直致力於確保滿足不斷增長的需求，並繼續為客戶提供最高品質的產品。

Overall our $150 million cost synergy target within 18 months of the acquisition is firmly on track. To give you some background, during the integration planning phase, the vast majority of actions needed to realize the synergy target were identified. And while many of the related actions have already been taken, we're only in the early stages of seeing the benefits of those synergies in our P&L.

總體而言，我們在收購後 18 個月內實現 1.5 億美元成本綜效的目標正在穩步推進。為了讓大家了解一些背景訊息，在整合規劃階段，已經確定了實現綜效目標所需的大部分行動。雖然許多相關措施已經採取，但我們才剛開始看到這些綜效對我們的損益表帶來的好處。

In addition, we expect non-GAAP EPS accretion in our first full quarter as a combined company to be 15%, and we expect earnings accretion to accelerate into fiscal 2018 as we begin to more fully realize the synergies from the transaction.

此外，我們預計合併後的第一個完整季度非GAAP每股盈餘將成長15%，並且隨著我們開始更充分地實現交易帶來的綜效，我們預計2018財年的獲利成長將加速。

So with that, I'd like to turn the call over to Ali for details of our financial performance in the second quarter.

那麼，接下來我將把電話交給阿里，讓他詳細介紹我們第二季的財務表現。

Great. Thanks, Vince. Good morning, everybody.

偉大的。謝謝你，文斯。大家早安。

Since the acquisition of Linear Tech occurred about halfway through our second quarter, Linear Tech's contributions to ADI's results were limited to approximately 7 weeks, and my prepared remarks will exclude Linear's results and other special items unless I specify otherwise. Note that a schedule reconciling our stand-alone and combined performance can be found on our Investor page at investor.analog.com and a reconciliation of our combined GAAP performance to our combined non-GAAP performance can be found in schedules E and F of today's earnings release.

由於對凌力爾特的收購發生在我們第二季度中期，凌力爾特對ADI業績的貢獻僅限於大約7週，除非另有說明，否則我準備的發言將不包括凌力爾特的業績和其他特殊項目。請注意，您可以在 investor.analog.com 的投資者頁面上找到我們獨立業績和合併業績的調節表，而我們合併後的 GAAP 業績與合併後的 non-GAAP 業績的調節表可以在今天發布的收益報告的附表 E 和 F 中找到。

So revenue in the second quarter increased to $1 billion, growing 2% sequentially and 28% over the prior year and was above our revised guidance. Sequential revenue growth was led by our B2B markets of industrial, automotive and communications infrastructure, which, in the aggregate, grew 11% sequentially and, importantly, 14% over the prior year. Gross margins in the second quarter were 67.6%, up 150 basis points from the 66.1% we achieved in the prior quarter, primarily the result of higher utilization rates.

因此，第二季營收成長至 10 億美元，季增 2%，年增 28%，高於我們修訂後的預期。環比收入成長主要得益於我們的 B2B 市場，包括工業、汽車和通訊基礎設施，這些市場整體環比增長 11%，更重要的是，同比增長 14%。第二季毛利率為 67.6%，比上一季的 66.1% 提高了 150 個基點，主要是由於產能利用率提高所致。

Days of inventory increased 3 days to 104 days and dollars of inventory increased $12 million sequentially as we increased production to match strong demand. Deferred revenue for shipments into distribution increased 6% sequentially and weeks of inventory in distribution were at 7 weeks, which was consistent with the prior quarter.

由於我們提高了產量以滿足強勁的需求，庫存週轉天數增加了 3 天，達到 104 天，庫存金額較上季增加了 1,200 萬美元。出貨至分銷通路的遞延收入較上季成長 6%，分銷通路的庫存週數為 7 週，與上一季一致。

Operating expense of $318 million increased 4% sequentially due to the natural lift from higher activity in the second quarter as compared to the first and higher variable compensation in the second quarter as our bonus program responded to better year-over-year revenue growth and operating profit in the quarter. As a result, operating margins of 36% of sales expanded 500 basis points compared to the prior year on strong revenue growth, higher gross margins and prudent expense management by the team.

由於第二季度業務活動較第一季有所增加，以及第二季度浮動薪酬較高（因為我們的獎金計劃對本季度同比收入增長和營業利潤的提高做出了響應），營業支出環比增長 4%，達到 3.18 億美元。因此，由於強勁的收入成長、更高的毛利率以及團隊審慎的費用管理，營業利潤率達到銷售額的 36%，比前一年增長了 500 個基點。

So now for P&L line items below the operating margin line, I'll talk to results on a combined company basis, excluding special items, outlined in today's release. Other expense in the second quarter was $59 million, the result of a partial quarter with the financing related to the Linear Tech acquisition in place. We expect our net interest expense to be approximately $70 million in the third quarter and approximately $60 million per quarter thereafter.

現在，對於損益表中營業利潤率以下的項目，我將以合併公司為基礎，不包括今天發布的公告中概述的特殊項目，來談談業績。第二季其他支出為 5,900 萬美元，這是由於與 Linear Tech 收購相關的融資已到位，導致部分季度支出增加。我們預計第三季淨利息支出約為 7,000 萬美元，此後每季約為 6,000 萬美元。

Our second quarter non-GAAP tax rate was approximately 10%, and that's the rate we expect for the remaining 2 quarters of the year. We are also planning for a non-GAAP tax rate in 2018 to be approximately 15%, so note that'll be higher than the 10% rate this year.

我們第二季的非GAAP稅率約為10%，我們預計今年剩餘兩季的稅率也將維持在這個水準。我們還計劃 2018 年的非 GAAP 稅率約為 15%，請注意，這將高於今年的 10% 稅率。

Our diluted share count increased in the quarter due to the equity consideration related to the acquisition. Since this is a weighted average calculation, the diluted share count in 2Q increased to 346 million shares, and we expect diluted share count in the third quarter, which will be our first full quarter as a combined company, to be approximately 375 million shares. Excluding special items, diluted earnings per share in the second quarter of 2017 was $1.03.

由於收購相關的股權對價，本季我們的稀釋後股份數量增加。由於這是加權平均計算，第二季稀釋後的股份數量增加到 3.46 億股，我們預計第三季（我們將作為合併後公司的第一個完整季度）稀釋後的股份數量約為 3.75 億股。不計特殊項目，2017 年第二季稀釋後每股收益為 1.03 美元。

The second quarter was also a very strong free cash flow quarter. As a combined company, we generated $475 million in free cash flow in the second quarter. And for the reported trailing 12 months, the combined company has generated $1.9 billion of free cash flow, which translates to free cash flow margins of 37%.

第二季自由現金流也非常強勁。合併後的公司在第二季產生了 4.75 億美元的自由現金流。據報道，合併後的公司在過去 12 個月中產生了 19 億美元的自由現金流，自由現金流利潤率為 37%。

Now this level of free cash flow generation is noteworthy for several reasons. First, it reflects the strength of our business model and our brand. Second, it means that our EBITDA generation was also very strong. And this means that we're better positioned from a leverage ratio standpoint at the current time than we had communicated to you earlier. So as a result, our net debt-to-EBITDA ratio based on reported combined company results is, in fact, approximately 3x, which is significantly lower than the 3.8x net debt to EBITDA number that we'd estimated when we announced the deal.

如今這種自由現金流的產生水準之所以引人注目，原因有幾個。首先，它體現了我們商業模式和品牌的實力。其次，這意味著我們的 EBITDA 表現也非常強勁。這意味著，從槓桿率的角度來看，我們目前的處境比之前向您傳達的情況要好。因此，根據已公佈的合併公司業績，我們的淨負債與 EBITDA 比率實際上約為 3 倍，這遠低於我們在宣布該交易時估計的 3.8 倍淨負債與 EBITDA 比率。

So moving to capital additions, which in the second quarter were $47 million for the combined company and are planned to be in the range of $200 million to $220 million for the year here in 2017. During the quarter, we also paid $139 million in dividends, and earlier this week, our Board of Directors declared a quarterly cash dividend of $0.45 per outstanding share of common stock payable on June 20 to shareholders of record at the close of business on June 9. And that represents an annual dividend payment to shareholders of $1.80 per share.

接下來是資本投入方面，合併後的公司在第二季投入了 4,700 萬美元，並計劃在 2017 年全年投入 2 億至 2.2 億美元。本季度，我們還支付了 1.39 億美元的股息。本週早些時候，董事會宣布派發季度現金股息，每股普通股 0.45 美元，將於 6 月 20 日支付給 6 月 9 日營業結束時登記在冊的股東。這相當於向股東支付的年度股息為每股 1.80 美元。

Okay. So with that, I'll turn it back over to Vince for our outlook for the third quarter of 2017, which again is on a combined company basis and excludes special items outlined in today's release.

好的。那麼，接下來我將把發言權交還給 Vince，讓他談談我們對 2017 年第三季的展望。同樣，這是以公司合併為基礎的展望，不包括今天發布的公告中概述的特殊項目。

Thanks, Ali. After a strong second quarter performance, we're planning for a continued sequential and year-over-year revenue growth in the third quarter and for revenue to be in the range of $1.37 billion to $1.45 billion. By end market, we're planning for continued sequential revenue growth in industrial and for the communications end market to remain stable to the prior quarter.

謝謝你，阿里。繼第二季強勁的業績之後，我們計劃在第三季繼續保持環比和同比增長的收入成長，營收將在 13.7 億美元至 14.5 億美元之間。按終端市場劃分，我們預期工業領域的營收將持續環比成長，而通訊終端市場將與上一季保持穩定。

In automotive, we anticipate that seasonal trends will prevail, which would suggest a mid-single digit sequential decline in the third quarter. In the consumer market, we're planning for modest sequential revenue growth in the third quarter.

在汽車產業，我們預計季節性趨勢將占主導地位，這意味著第三季將出現中等個位數的環比下降。在消費市場方面，我們預計第三季營收將實現溫和的環比成長。

We expect gross margins to be between 69% and 70% as we keep utilization levels stable to their second quarter rates and benefit from higher industrial revenue mix. We estimate that operating expenses will be between $430 million and $440 million. Notably this translates into an operating margin range of 38% to 40% in the third quarter. Based on these estimates and excluding special items, diluted earnings per share are planned to be in the range of $1.07 to $1.21.

我們預計毛利率將在 69% 到 70% 之間，因為我們將維持產能利用率與第二季持平，並受益於更高的工業收入佔比。我們預計營運費用將在 4.3 億美元至 4.4 億美元之間。值得注意的是，這意味著第三季的營業利潤率在 38% 到 40% 之間。根據這些估計，不計特殊項目，稀釋後每股收益計劃在 1.07 美元至 1.21 美元之間。

While we continue to see good business conditions, we're always pragmatic and cautious in how we manage our business and in how we convert our precious resources into free cash flow. On this point, with the combination complete, ADI's free cash flow margin now ranks within the top 5% of the S&P 500.

儘管我們持續看到良好的商業環境，但我們在管理業務和將寶貴資源轉化為自由現金流方面始終保持務實和謹慎的態度。就這一點而言，隨著合併完成，ADI 的自由現金流利潤率現在位列標普 500 指數前 5%。

At our Investor Day on June 20, we'll outline our plan to drive the long-term profitable growth for ADI, leveraging the customer value-creation capabilities of our innovation and business diversity and our focus on best-in-class operational efficiencies to continue to drive our free cash flow to even higher levels.

在 6 月 20 日的投資者日上，我們將概述推動 ADI 長期盈利增長的計劃，利用我們創新和業務多元化的客戶價值創造能力，以及我們對一流運營效率的關注，繼續將我們的自由現金流推向更高的水平。

So with that, we're ready now to take your questions.

那麼，現在我們就可以回答你們的問題了。

All right. Thanks, Vince. So before we get to the Q&A session, just a couple of quick housekeeping items for me. So note that we'll be hosting an Investor Day on June 20. It's accessible via live webcast. I invite you all to tune in on June 20 to hear more about our long-term strategy and the new financial model for the company.

好的。謝謝你，文斯。在進入問答環節之前，我先簡單說明幾件事。請注意，我們將於6月20日舉辦投資者日活動。可透過網路直播觀看。我邀請大家在6月20日收聽節目，以了解更多關於我們公司的長期策略和新的財務模式的資訊。

And so let's get to the Q&A session. (Operator Instructions). So operator, can we have our first question, please?

那麼，讓我們進入問答環節。（操作說明）接線員，我們可以問第一個問題嗎？

(Operator Instructions) Our first question comes from the line of Ambrish Srivastava with BMO.

（操作員說明）我們的第一個問題來自 BMO 的 Ambrish Srivastava 的線路。

I had a medium-term question, Ali, and maybe you could answer that. And then I had a longer-term follow-up for Vince. So for the medium term, could you please help us frame the consumer business, how -- and when I say medium term, I'm thinking how should we be thinking about this over the next 6 to 18 months? And then I had a follow-up for Vince.

阿里，我有一個中期問題，也許你能回答。然後，我對文斯進行了更長期的追蹤。那麼，就中期而言，您能否幫助我們建立消費者業務框架？ ——我所說的中期，是指在接下來的 6 到 18 個月裡，我們該如何看待這個問題？然後我還有後續問題想問文斯。

Okay. Sure, thanks, Ambrish. Look, I guess, what I would tell you is our strategy in consumer is no different than our strategy in any of our markets. We focus on very tough problems that our customers have. We work to solve those for them. We try and create as much value as possible for our customers. And in turn, that tends to generate a lot of free cash flow for ADI. I'd say the only difference in consumer, relative to our other markets, is that the product life cycles tend to be a little bit shorter. But apart from that, I'd say the strategy at ADI is very, very consistent across all of our markets. Now you've seen that strategy play out over the last couple years. We've grown our consumer business nicely. It's generated a lot of free cash flow for the company. We've diversified our position in consumer both at our large customer. We've diversified our position across many other customers and into new vectors of growth that we think will drive consumer free cash flow and revenue growth over the long term. All that being said, you know as well as I do that the consumer market tends to have shorter life cycles. And so as a result, you can have periods of time where you've got some older designs that are rolling off and there's a bit of a pause between that happening and newer designs rolling on. My sense is that we're likely in one of those periods at the current time. I expect as a result, our mix of B2B markets to expand as a percentage of our revenue as we get into the back half of 2017. And I'd expect that to continue into 2018 as well. I guess the only other point I would make is, just to provide a little bit more context, Ambrish, is the -- each -- we manage a very complex mix of portfolios and businesses at ADI. Each one of them have different life cycles. Each one of them have different revenue growth profiles. Each one of them have different profitability profiles. But what I would tell you is as long as ADI is focusing on very tough problems to solve for customers, and we can drive a lot of free cash flow and, frankly, if we're meeting our hurdle rates, and we can drive really good long-term profitable growth and free cash flow, we'll play. Because ultimately that's the measure. Vince mentioned it in the prepared remarks, we're now a top 5% S&P 500 free cash flow generator. And our goal is to drive that even higher from here.

好的。當然，謝謝你，安布里什。我想說的是，我們在消費者領域的策略與我們在其他任何市場的策略並無不同。我們專注於解決客戶遇到的棘手問題。我們努力為他們解決這些問題。我們努力為客戶創造盡可能多的價值。反過來，這往往會為ADI產生大量的自由現金流。我認為，與其他市場相比，消費者的唯一區別在於產品生命週期往往稍短。但除此之外，我認為ADI的策略在我們所有市場都非常非常一致。現在，你已經看到了這個策略在過去幾年中的實際應用。我們的消費者業務發展良好。它為公司創造了大量的自由現金流。我們已在消費者領域實現了多元化佈局，包括我們的大客戶。我們已將業務拓展至許多其他客戶，並進入我們認為能夠長期推動消費者自由現金流和收入成長的新增長領域。綜上所述，你我都清楚，消費市場的生命週期往往較短。因此，可能會出現這樣的情況：一些較舊的設計被淘汰，而新設計則在淘汰和新設計推出之間有一段停頓期。我的感覺是，我們目前可能正處於這樣的時期之一。因此，我預計到 2017 年下半年，我們的 B2B 市場佔收入的比例將會擴大。我預計這種情況會持續到2018年。我想補充一點，Ambrish，為了提供更多背景信息，我們ADI管理著非常複雜的投資組合和業務組合。它們各自有不同的生命週期。它們各自的營收成長情況都不相同。它們各自的獲利模式都不同。但我可以告訴你的是，只要 ADI 專注於為客戶解決非常棘手的問題，並且我們能夠產生大量的自由現金流，坦白說，如果我們能夠達到我們的最低收益率，並且能夠實現真正良好的長期盈利增長和自由現金流，我們就會參與其中。因為歸根究底，這才是衡量標準。文斯在事先準備好的發言稿中提到，我們現在是標普500指數中自由現金流排名前5%的公司。我們的目標是在此基礎上更上一層樓。

Our next question comes from C.J. Muse with Evercore.

我們的下一個問題來自 Evercore 公司的 C.J. Muse。

First clarification, in terms of the revenue guide, was that combined or did that exclude old Linear? And then, I guess, as my main question, just a follow-up on Ambrish's question around consumer. Is that a business looking into calendar '17 and '18 that can grow given that you have brought on diversification increase to customer? Or is that something that we should be thinking about declining over the next 1, 2 years?

首先需要澄清的是，關於收入預期，該預期是包含所有收入還是不包括舊的Linear收入？然後，我想，我的主要問題是，對 Ambrish 關於消費者的問題的後續提問。鑑於貴公司已實現客戶多元化成長，那麼這家企業在 2017 年和 2018 年是否還有成長潛力？或者，我們是否應該考慮在未來一兩年內減少這種需求？

Okay. So I think that was your first question and a follow-up. So I think on the revenue side, we provided combined company guidance for both companies. And the range is $1.37 billion to $1.45 billion. That would imply a midpoint of $1.41 billion. And I guess, if you were just to think about how that flows by end markets, C.J., we expect -- the industrial market again had a very good second quarter. We expect that strength to continue into the third quarter. As a result, we're expecting industrial to grow somewhere in the low to mid-single digits sequentially in the third quarter, which again would be better than seasonal. Automotive, we're expecting a pretty seasonal quarter. So as a result, that would decline kind of in the mid-single digits sequentially. Communications is implied to be relatively stable. And on the consumer side, we are expecting modest sequential growth relative to the second quarter. And Vince, did you want to take the question about consumer implied growth in 2017 and 2018?

好的。所以，我想那是你的第一個問題，也是後續問題。所以我覺得在營收方面，我們提供了兩家公司合併後的業績預期。範圍在 13.7 億美元至 14.5 億美元之間。這意味著中間值約為 14.1 億美元。我想，如果你仔細想想這如何透過終端市場流通，C.J.，我們預計——工業市場在第二季度再次取得了非常好的成績。我們預計這種強勁勢頭將延續到第三季。因此，我們預計第三季工業將環比成長個位數低至中等水平，這又將好於季節性因素。汽車產業，我們預計本季將受到明顯的季節性影響。因此，其結果就是，該指標將以中等個位數的幅度逐年下降。通訊狀況相對穩定。在消費者方面，我們預期與第二季相比將出現溫和的環比成長。文斯，你想回答一下關於 2017 年和 2018 年消費者隱含成長率的問題嗎？

Yes, I think, as Ali said, we experienced fundamentally shorter life cycles in the consumer market. And we've been working very, very hard over the last couple of years to diversify our product base and our customer base and the application base within consumer, and we're making good progress at that. I think as we look into the third quarter, as Ali said, we're seeing modest sequential revenue growth but nonetheless below what we would consider to be seasonal norms. So we're probably in a slower growth environment in the consumer business for the near term here.

是的，我認為，正如阿里所說，我們經歷了消費市場生命週期從根本上縮短的趨勢。在過去的幾年裡，我們一直在努力使我們的產品基礎、客戶基礎和消費領域的應用基礎多樣化，並且我們在這方面取得了良好的進展。我認為，正如阿里所說，展望第三季度，我們看到營收環比略有增長，但仍然低於我們認為的季節性正常水平。因此，短期內消費品產業的成長環境可能會放緩。

And I'd say, C.J., if I could just add 2 points. One is we do expect as a result, our B2B markets to expand as a percentage of total revenue. And I think as you look into 2018, the accretion from the Linear Tech deal is very strong here in the third quarter, about 15%. And given some of the synergies that we've talked about, we expect that EPS accretion to accelerate into 2018, and I think that would be a very strong result.

C.J.，如果可以的話，我想再加2分。其一是我們預計，因此，我們的 B2B 市場佔總收入的比例將會擴大。我認為，展望 2018 年，Linear Tech 交易帶來的收益在第三季非常強勁，約為 15%。鑑於我們討論過的一些協同效應，我們預計每股盈餘成長將在 2018 年加速，我認為這將是一個非常強勁的結果。

Our next question is from Harlan Sur with JPMorgan.

下一個問題來自摩根大通的哈蘭‧蘇爾。

Given the stronger industrial demand pull and outlook for continued growth, just wondering if you guys are seeing any component tightness or lead time stretching out? I know a few of your peers have highlighted some tightness. I'm just -- it sounds like you guys still have more room to grow on utilizations but wanted to get your views on the supply side situation.

鑑於工業需求強勁且前景持續成長，想問各位是否遇到零件供應緊張或交貨週期延長的情況？我知道你們的一些同學也提到一些緊張的情況。我只是——聽起來你們在產能利用率方面還有很大的提升空間，但我想聽聽你們對供應方面情況的看法。

Yes, on the supply side -- no, thanks. Good question, Harlan, one that we obviously think about a lot as well. But I would tell you, our -- we're delivering the vast majority of our products within our stated lead times of 4 to 6 weeks. That frankly hasn't changed all that much over the last several quarters. I guess, what I would tell you is, at ADI, we're very focused on providing the highest levels of customer service and support, and part of that service and support model is to deliver products when we tell our customers that we're going to deliver them. And so we tend to keep our lead times pretty short, 4 to 6 weeks delivering the vast majority of our products within those stated lead times. And I guess I would also tell you that we are carrying 3.5 months worth of inventory in our balance sheet, which I think is a fair amount of inventory to help supply our customers with the products. The only one other point I perhaps make on this front is that if you recall back in 2016, we did bring our utilization rates down pretty hard. And the reason we did that is we wanted to manage our DSI, or days of inventory, down. And we managed the impact on gross margins by making permanent improvements in our cost structure. And I think as you now look out to 2017 and 2018, I think what investors should expect from ADI is a nice benefit on the drop-throughs. Because as we're building the inventory, the drop-throughs are certainly better. But I guess, just coming back to your earlier point on the lead times, vast majority delivered within 4 to 6 weeks, and we're keeping up high levels of service to our customers. Did you have a follow-up?

是的，就供應方面而言——不，謝謝。哈蘭，問得好，這顯然也是我們常常思考的問題。但我可以告訴你，我們的大部分產品都能在規定的 4 到 6 週交貨期內交付。坦白說，過去幾個季度以來，這種情況並沒有發生太大變化。我想告訴大家的是，在 ADI，我們非常注重提供最高水準的客戶服務和支持，而這種服務和支援模式的一部分就是，我們會在向客戶承諾交付產品的時候交付產品。因此，我們的交貨週期通常都很短，4 到 6 週內即可交付絕大多數產品。我還要告訴大家，我們的資產負債表上顯示，我們目前有相當於 3.5 個月的庫存，我認為這是相當可觀的庫存量，有助於我們向客戶提供產品。關於這一點，我可能還要補充一點，如果你還記得 2016 年的情況，我們確實大幅降低了利用率。我們這樣做的原因是，我們想降低庫存週轉天數（DSI）。我們透過對成本結構進行永久性改進，控制了對毛利率的影響。展望 2017 年和 2018 年，我認為投資人應該預期 ADI 在跌破選擇權方面帶來不錯的收益。因為在建立庫存的過程中，掉落式銷售肯定會更好。但我想回到您之前提到的交貨週期問題，絕大多數訂單都在 4 到 6 週內交付，我們一直保持著為客戶提供高水準的服務。您有後續跟進嗎？

No, I'm good.

不，我很好。

Okay.

好的。

Our next question is from Craig Hettenbach with Morgan Stanley.

下一個問題來自摩根士丹利的克雷格·赫滕巴赫。

Question for Vince. I just want to follow up on your comments around automotive with Linear Tech. And more specifically, can you talk about how expansive your opportunity set is? If there's any examples of things that you think they will help you expand the content within automotive?

問文斯一個問題。我想就您之前關於Linear Tech在汽車領域的評論做個補充說明。更具體地說，您能談談您的機會範圍有多廣嗎？您能否舉例說明哪些方面可以幫助您拓展汽車領域的內容？

Yes. So automotive for us is a story of continuing content gain here for both LTC and for ADI. So we see it as a key growth market for the combined companies. So I think we've talked before about ADI having great strength in emerging applications like, for example, 77 gigahertz radar -- LIDAR, infotainment with our A2B technology, for example, bringing new technologies into the powertrain, such as the rotational and linear sensing magnetic devices and, as the powertrain electrifies, being able to get our battery management technologies in there as well. So I think both LTC and ADI have a lot of complementary capability, for example, to the ADI signal chains that I've just talked about here, we're adding LTC power management capability. And the outcome of that is we can architect an optimized solution for each of the subapplications here for the automotive customers. And the -- there's great complementarity between the signal chain and the power chain. So I think that's looking very, very good. And also, there's a lot of new power management things that we're looking at independent of signal chains that LT will be instrumental in helping us nail down over the coming few years. So as I said, there's a tremendous amount of benefit in coupling power management with the signal chain. And every single application in which we play within the transportation automotive sector requires both signal chain and power management. So -- and what I'm seeing so far is a tremendous level of collaboration between the applications teams, the design teams in really grabbing the opportunities here with both hands.

是的。因此，對 LTC 和 ADI 而言，汽車產業的故事就是持續的內容成長。因此，我們認為這是合併後公司的重要成長市場。所以，我認為我們之前已經討論過，ADI 在新興應用領域擁有強大的實力，例如 77 吉赫茲雷達（雷射雷達）、採用我們 A2B 技術的資訊娛樂系統，例如將新技術引入動力系統，例如旋轉和線性感測磁性裝置，並且隨著動力系統的電氣化，我們還可以將其電池管理技術應用到動力系統中。所以我認為 LTC 和 ADI 有很多互補的功能，例如，對於我剛才提到的 ADI 訊號鏈，我們正在添加 LTC 電源管理功能。最終結果是，我們可以為汽車客戶的每個子應用程式建立一個最佳化的解決方案。而且——訊號鍊和電源鏈之間有著很好的互補性。所以我覺得情況看起來非常好。此外，我們也正在研究許多與訊號鏈無關的新型電源管理技術，LT 將在未來幾年內幫助我們解決這些問題。正如我所說，將電源管理與訊號鏈結合會帶來巨大的好處。我們在交通運輸汽車領域所從事的每一個應用都需要號誌鍊和電源管理。所以——到目前為止，我看到的是應用程式團隊和設計團隊之間高度協作，真正抓住了這裡的機會。

Great. Thanks, Craig, did you have a follow-up?

偉大的。謝謝克雷格，你還有後續問題嗎？

Yes, I guess, just a brief one, just on the integration. Good to hear that it's on track and kind of good start out of the gate. Just any comments in terms of culture, key people and any kind of milestones we should be aware of?

是的，我想，就簡單說一下，關於整合方面。很高興聽到一切進展順利，而且開局不錯。關於公司文化、關鍵人物以及我們應該注意的任何里程碑事件，您有什麼要補充的嗎？

Well, we've known that LT is a very, very high-quality company. And I've been obviously hands-on involved in the integration of the 2 companies. I'm very, very impressed by the quality of the people throughout LT, and I'm also very impressed with just how fast both companies are coming together to create something better than the sum of the parts. So right now, we're laser-focused on leveraging the combined strengths of both companies to generate this long-term profitable growth possibility that we know is there. And we are taking our time to really figure out -- and we're being been very, very patient at figuring out how to combine the leadership -- we've combined the leadership teams, but we're being very patient in trying to figure out what the best of both really means here. So I think to answer your question very directly here, Craig, we're culturally I think in good shape. Our values, as I've talked about many times before, the values around technology and business and customer are very, very similar. And in creating this best of both, we're actually leveraging the differences in the way the operating routines of both companies -- to draw from, to create something greater than the sum of the parts. So we're focused, as I said, on delighting our customers, ensuring that we're capturing the upside demand here. And I think overall, the -- once the values are compatible, as I said, I'm using the cultural differences to create something greater than the sum of the parts. And the LT leadership is playing a key role. I've got 2 members of the senior LTC staff on my staff. And the LT leaders are contributing to this new company multiple levels down at this point in time.

我們一直都知道LT是一家非常非常高品質的公司。我顯然親力親為地參與了這兩家公司的整合工作。我對LT全體員工的素質印象深刻，也對兩家公司迅速融合，創造出比各部分之和更好的成果感到非常欽佩。所以現在，我們正全力以赴地利用兩家公司的綜合優勢，創造我們知道存在的長期獲利成長機會。我們正在花時間認真思考——我們非常有耐心去思考如何整合領導層——我們已經合併了領導團隊，但我們仍然非常有耐心地試圖弄清楚如何真正發揮雙方的優勢。所以，克雷格，我想直接回答你的問題，我認為我們在文化方面狀況良好。正如我之前多次談到的，我們在技術、商業和客戶方面的價值觀非常非常相似。在創造這種兩全其美的局面時，我們實際上是在利用兩家公司運作方式的差異——從中汲取經驗，創造出大於各部分總和的成果。正如我所說，我們專注於讓客戶滿意，確保我們能夠抓住這裡不斷增長的需求。而且我認為總的來說——一旦價值觀相符，正如我所說，我就會利用文化差異來創造大於各部分總和的東西。而領導階層正在發揮關鍵作用。我的團隊裡有兩位資深長期照護人員。目前，LT 領導層正在為這家新公司的各個層級做出貢獻。

And our next question is from Ambrish Srivastava with BMO.

下一個問題來自BMO的Ambrish Srivastava。

You're back. Good.

你回來了。好的。

I had my follow-up keyed up. For some reason, I got dropped off. I wanted to get back to the capital allocation and the free cash flow. It seems like the free cash flow generating ability might be higher than at least what our models were suggesting. So could you please remind us just in terms of capital allocation and the timing for the paydown? Obviously, the leverage ratio was lower than what you had communicated and what it was at the deal close. So any light on that would be very helpful.

我已經安排好後續事宜了。不知何故，我被送到這裡了。我想回到資本配置和自由現金流的問題。看來該公司的自由現金流產生能力可能比我們模型預測的還要高。那麼，您能否提醒我們一下資金配置和還款時間的狀況呢？顯然，槓桿率低於你之前溝通的數值，也低於交易完成時的數值。所以，任何相關資訊都將非常有幫助。

Okay, fair enough. I'll leave the key takeaway for next month when we present to you at the Analyst Day because I think we want to save a little bit of dry powder for that. But what I would tell you is, since we announced the acquisition, there's a couple of things. One is, we set out this target of 3.8x net debt to EBITDA. And in typical ADI fashion, we put out targets, and we execute extremely aggressively against those targets. And part of just coming out at a lower leverage ratio is just a function of the mindset at ADIs. We execute extremely aggressively against the targets that we lay out. Part of it is, look, business conditions have been better, and as a result, we've generated more cash flow. And part of it frankly is just having a laser focus on operational efficiencies. And so that's driven a lot of good cash flow as well. The good news, I guess, from a leverage perspective as we've talked about is we're certainly well ahead of schedule in terms of the deleveraging plan. The bogey we're shooting for is 2x net debt-to-EBITDA, and I'd say we're probably ahead of schedule in trying to hit that number. Once we get to that number, I think we've been pretty public in terms of saying, look, we're going to turn the share buyback program back on. In the meanwhile, the dividend remains a cornerstone of our capital allocation strategy. And then the only other last point I'd make is -- and again this kind of supports the notion that we're ahead of schedule is, after the quarter ended, we did pay $200 million down on the $5 billion term loan balance. So I think we're certainly ahead of schedule and in very good shape on that front.

好吧，這說得有道理。我打算把最重要的資訊留到下個月的分析師日再告訴大家，因為我覺得我們應該留一些空間。但我想告訴大家的是，自從我們宣布收購以來，有兩件事發生了。第一，我們設定了淨負債與 EBITDA 比率為 3.8 倍的目標。按照 ADI 一貫的作風，我們會設定目標，然後非常積極地執行這些目標。而槓桿率降低的部分原因，只是授權存款機構（ADI）思維方式的展現。我們對既定目標採取極為積極的執行策略。部分原因是，你看，商業環境有所改善，因此我們產生了更多的現金流。坦白說，其中一部分原因就是要高度重視營運效率。因此，這也帶來了大量的良好現金流。從槓桿率的角度來看，正如我們之前討論過的，好消息是我們在去槓桿化計劃方面肯定遠遠領先於計劃進度。我們設定的目標是淨債務與 EBITDA 比率達到 2 倍，我認為我們可能已經提前實現了這個目標。一旦達到那個數字，我認為我們已經公開表示過，我們將重新啟動股票回購計畫。同時，股利仍是我們資本配置策略的基石。最後我還要補充一點——這也再次印證了我們進度超前的說法——季度結束後，我們償還了 50 億美元定期貸款餘額中的 2 億美元。所以我認為我們在這方面肯定提前完成了計劃，而且進展非常順利。

Your next question is from Tore Svanberg with Stifel.

您的下一個問題來自 Stifel 公司的 Tore Svanberg。

So the industrial market is growing very strongly. I believe you mentioned 20% year-over-year. How much of that is the market coming back versus perhaps more electronic content or even some share gains?

因此，工業市場正在強勁成長。我記得你提到過年增20%。其中有多少是市場復甦，又有多少是電子內容增多，甚至有多少是市佔率成長？

Yes, thanks, Tore. I think it's true to say that, first off, we're recovering from a relatively weak environment in the prior year. So the compare is kind of easy from that perspective. From everything that we can tell right now, the growth is broad-based across all the industrial sectors and, in fact, across all the geographies as well. And I think that's just a function of the better business environment versus last year overall. And if you -- just paying attention to our own customers as well, they're all guiding for low to high single-digit growth in 2017. As a company, several years ago, we made a strategic pivot in terms of where we placed our R&D, putting more into B2B applications. And industrial has been a great beneficiary of that. So I think just given the cycles in the industrial sector, in general, we're beginning to see some of those products really contribute in a meaningful way across factory and process automation, aerospace and defense, the instrumentation ATE business. And so I think the business environment is overall better, but we're also doing better in terms of grabbing share through the effects of our new product investments over the last several years.

是的，謝謝你，托雷。我認為，首先，我們正在從去年相對疲軟的環境中恢復過來，這種說法是成立的。所以從這個角度來看，比較起來就比較容易了。從我們目前所掌握的情況來看，成長是普遍的，遍及所有工業部門，事實上，也遍及所有地區。我認為這僅僅是由於今年的商業環境比去年整體上更好。而且，如果你也關心我們自己的客戶，他們都預測 2017 年將達到個位數低到高的成長。幾年前，我們公司對研發投入方向進行了策略調整，將更多資源投入 B2B 應用領域。工業界從中受益匪淺。所以我認為，考慮到工業領域的周期性變化，我們開始看到其中一些產品在工廠和製程自動化、航空航太和國防、儀器儀表自動測試設備 (ATE) 業務等領域真正發揮了有意義的作用。因此，我認為整體商業環境有所改善，而且由於過去幾年我們對新產品的投資，我們在搶佔市場份額方面也做得更好了。

Did you have a follow-up?

您有後續跟進嗎？

Yes. Vince, you also mentioned earlier that you plan to leverage Linear Technology into the wireless infrastructure market. I was just hoping you could elaborate just a little bit more on that because, certainly, that's a market that's been weaker the last few years. But assume with 5G coming on, your plan is to leverage both entities to participate in that market.

是的。Vince，你之前也提到過，你打算利用凌力爾特公司進軍無線基礎設施市場。我只是希望您能再詳細解釋一下，因為可以肯定的是，過去幾年這個市場確實比較疲軟。但假設隨著 5G 的到來，你的計劃是利用這兩個實體參與市場。

Yes. Thanks, Tore. Well, we're-- as ADI organic, we've been doing better and better in terms of building solutions for our customers from antenna right down to bits, leveraging the strength of ADI and Hittite combined. And we know that as customers put greater and greater pressure on for more integration, to be able to solve the noise problems more effectively in these radio systems, that power management is going to be a great help to us. And already, I think in the shorter term, we're being actively engaged in discussions to use existing products with ADI solutions, for example, in the transceiver space, in 5G systems, leveraging LT's power technology. And that's only the beginning because, over the coming generations, when we can start to architect the radio solutions now with the new advances in power management technology that LT has been making, I think we can have several generations here of success in both the wired and the wireless business in the years ahead. And there's no doubt there's tremendous symbiosis between the signal chain technologies that ADI has been so strong in over the years with the power technologies that LT now brings to the table. So the conversations with our customers are very active and -- with existing products, and we're now plotting the next new architectures based on the combination of the 2 companies.

是的。謝謝你，托雷。嗯，作為 ADI 的有機體，我們在為客戶建立解決方案方面做得越來越好，從天線到比特，充分利用了 ADI 和 Hittite 的綜合實力。我們知道，隨著客戶對整合性的要求越來越高，為了更有效地解決這些無線電系統中的雜訊問題，電源管理將對我們大有幫助。而且我認為，在短期內，我們已經積極參與討論，將現有產品與 ADI 解決方案結合使用，例如在收發器領域、在 5G 系統中，利用 LT 的功率技術。而這只是個開始，因為在接下來的幾代人中，當我們能夠利用 LT 在電源管理技術方面取得的新進展來構建無線電解決方案時，我認為在未來的幾年裡，無論在有線還是無線業務方面，我們都可以取得幾代人的成功。毫無疑問，ADI 多年來一直非常強大的訊號鏈技術與 LT 現在帶來的電源技術之間存在著巨大的共生關係。因此，我們與客戶的對話非常活躍，而且——基於現有產品，我們現在正在根據兩家公司的結合來規劃下一個新架構。

Your next question is from William Stein with SunTrust.

您的下一個問題來自 SunTrust 銀行的 William Stein。

I'm hoping you can expand on something you touched on earlier, the cultural differences, however, maybe they're not as great as some people perceive. But I think one of them is that Linear was known for having an intense focus on gross profit margin and perhaps that limited that business' revenue growth, and I think ADI has a more growthy sort of outlook. So I'm wondering if you can sort of highlight any initial opportunities to expand the growth rate on the Linear business.

我希望你能詳細闡述你之前提到的文化差異，不過，也許這些差異並沒有一些人認為的那麼大。但我認為其中一個原因是 Linear 以高度重視毛利率而聞名，這或許限制了該公司的收入成長，而我認為 ADI 則具有更具成長前景的前景。所以我想知道您能否重點介紹在線性業務方面有哪些初步的機會可以擴大成長率。

Yes, it's a good question. It's true that both companies have had very, very strong focus on gross margin. I think it's a great kind of proxy for the quality of the innovation that you're developing, the price you can command and, ultimately, the gross margins that you can get. So what I will say is that ADI has probably just -- given our buying power and our operational focus, we have combined now with LT, we've got more buying power. So we can be more flexible in terms of taking some market share with products already available without sacrificing the margins, just given the signings of the so-called bill of materials that we're now sourcing across both companies. So we don't intend to drop our standards, but we do intend to be aggressive in terms of leveraging all the available products and technologies that we have to grow our business profitably. I think that's the way to think about it.

是的，這是個好問題。的確，這兩家公司都非常非常重視毛利率。我認為它是衡量你所開發的創新產品的品質、你能收取的價格以及最終你能獲得的毛利率的絕佳指標。所以我想說的是，鑑於我們的購買力和營運重點，ADI 可能只是——現在我們與 LT 合併了，我們擁有了更大的購買力。因此，鑑於我們現在在兩家公司之間採購的所謂物料清單已經簽署完畢，我們可以更靈活地利用現有產品來獲取一些市場份額，而不會犧牲利潤率。因此，我們不打算降低標準，但我們確實打算積極利用我們所擁有的所有產品和技術，以實現業務的獲利成長。我認為應該這樣想。

And did you have a follow-up, Will?

威爾，你還有後續問題嗎？

I did. One of the issues with the integration that's always important in any of these transactions is ERP, and by the disclosure around end markets that sort of lumps the Linear Tech revenue in its own category, maybe a sign that perhaps that's going to take a bit of time to reflect their revenue across your end markets. Any guidance or commentary as to when we should see that disclosed sort of on a combined basis? And just, in general, the update on that aspect of the integration?

我做了。在任何此類交易中，整合過程中始終重要的一個問題是 ERP，而根據終端市場披露的信息，Linear Tech 的收入被單獨歸類，這可能表明，他們的收入需要一段時間才能反映到您的終端市場中。對於何時應該以合併方式披露這些信息，是否有任何指導或評論？總的來說，關於整合這方面的新進展如何？

Yes, fair enough. I can take part of that. Look, from an ERP's perspective, and frankly from an integration perspective, we're generally keeping Linear Tech on a stand-alone basis for the first year. And then we'll converge. With regards specifically to the end market question, we actually have the data. I just didn't feel like it was that meaningful for a stub quarter, and I can certainly talk to it right now on the call. But you should expect from ADI next quarter that we have all of the disclosures by end market mapped out, and that's absolutely no issue to do. What I would tell you in the quarter, had Linear been part of ADI for a full quarter, they would have seen their industrial business grow, and they would have seen their automotive business decrease sequentially given their exposure to the powertrain market, specifically in transportation in China, which has been a weaker market. But the good news there, I'd say well is that, that market is actually pretty stable right now and that gives us a fair amount of confidence guiding into the third quarter that automotive will be pretty seasonal.

是的，說得有道理。我可以參與其中。從 ERP 的角度來看，坦白說，從整合的角度來看，我們通常會在第一年將 Linear Tech 保持為獨立系統。然後我們就會匯合。關於終端市場問題，我們實際上有相關數據。我覺得對於一個短暫的季度來說，這意義不大，我現在當然可以在電話會議上談談這件事。但您可以期待 ADI 下個季度會按終端市場列出所有披露信息，這絕對不成問題。如果Linear在本季成為ADI的一部分，那麼他們的工業業務將會成長，而汽車業務將會環比下降，因為他們涉足動力總成市場，尤其是在中國這個較為疲軟的運輸市場。但好消息是，目前汽車市場實際上相當穩定，這讓我們對第三季汽車產業的季節性特徵有了相當大的信心。

Your next question comes from Chris Danely with Citigroup.

下一個問題來自花旗集團的克里斯·丹利。

Now that Linear is kind of lumped into the mix, how -- if you could, frame the October quarter for the combined company just in terms of where combined OpEx could go? Could it go down again? And then also what should we expect for seasonality for revenue for the combined company for the October quarter?

既然 Linear 也被納入其中，那麼——如果可以的話——請您僅從合併後的營運支出可能走向的角度，來展望合併後公司 10 月份的季度業績？還會再次下跌嗎？那麼，對於合併後的公司而言，10 月季度的營收季節性波動該如何預期呢？

Yes, okay, so let me try and parse that out a little bit, and maybe Vince can help me as well. But look, from a -- Chris, we have absolutely no visibility into the fourth quarter, the October quarter at this stage. So in the absence of any orders, all I can rely on is what seasonal trends tend to do, and seasonally speaking, industrial tends to be a little weaker in the fourth quarter. Automotive generally increases. Communications is always a wildcard, just frankly, depending on how the builds and the deployments are going. And then consumer generally has a pretty good growth quarter sequentially because you start to see more of the builds taking place. So that's all I can tell you today with absolutely 0 visibility into the fourth quarter. What I would tell you on the OpEx side, and actually, it's a fair point, is on a stand-alone basis this quarter, ADI had OpEx of $318 million. Linear Tech contributed $62 million in the quarter. I guess, I'd caution you on that number. One is, obviously it's a stub period, and so it's a partial quarter. And number two, there were public company costs that did come out of that number, which we've always talked about public company costs being somewhere in the range of $15 million to $20 million annually. And so the quarterly run rate that we've guided to for operating expenses in the third quarter of $430 million to $440 million already includes those synergies embedded. Now to your other point, there are more synergies on the come. We'll start to see some of them. It'll be very back-end loaded, though, Chris, in the third quarter, but you'll start to see more of them play out in the fourth quarter. And I'd expect them to be then pretty linear back into the fourth quarter of 2018. If you recall, we've always talked about $100 million of OpEx synergies and achieving that run rate by the fourth quarter of 2018. I guess, what I'm saying is $20 million of that is now baked into the third quarter run rate number, and there's still another $80 million to come, again on an annualized number, as we go into the fourth quarter of 2018.

好的，那我試著分析一下，也許文斯也能幫幫我。但是，克里斯，就目前而言，我們對第四季度，也就是十月份的季度，完全沒有任何了解。因此，在沒有任何訂單的情況下，我只能依靠季節性趨勢，而從季節性角度來看，工業在第四季往往會略顯疲軟。汽車產業整體呈現成長趨勢。坦白說，溝通始終是一個變數，這取決於建置和部署的進度。然後，消費者通常會迎來相當不錯的季度環比增長，因為你會看到更多的建設項目正在進行中。由於對第四季的情況完全沒有頭緒，今天我只能告訴大家這些。關於營運支出方面，我想告訴你們的是，而且這確實是一個合理的觀點，本季ADI的獨立營運支出為3.18億美元。凌力爾特公司本季貢獻了 6,200 萬美元。我覺得，這個數字值得謹慎看待。顯然，這是一個短暫的時期，所以它只是一個不完整的季度。第二，這個數字確實包含了上市公司的成本，我們一直都說上市公司的成本每年在 1,500 萬美元到 2,000 萬美元之間。因此，我們先前預測的第三季營運費用為 4.3 億美元至 4.4 億美元，其中已經包含了這些協同效應。至於你的另一點，未來還會有更多綜效。我們將開始看到其中一些。不過，克里斯，第三節比賽的後半段會比較多，但到了第四節你會看到更多這樣的情況發生。我預計到 2018 年第四季度，它們的走勢將相當平穩。如果你還記得的話，我們一直在談論1億美元的營運支出綜效，並希望在2018年第四季實現這一目標。我想說的是，其中 2000 萬美元現在已經計入第三季度的運行率數字中，而隨著我們進入 2018 年第四季度，還有 8000 萬美元將以年化數字的形式到來。

Great. Do I get a follow-up?

偉大的。我會收到後續回覆嗎？

Of course.

當然。

Any update on the CFO -- new CFO?

關於財務長（CFO）有什麼最新消息嗎？有新的財務長嗎？

Well, let me tell you, Chris, we've -- obviously, we've retained the search firm. And what I can tell you is that we're making excellent progress right now. My expectation is that we'll have a replacement named by the end of the fiscal year at the latest. But I'm quite optimistic that we'll be able to announce something quite well before then. So in the interim, I'm taking a very hands-on approach with the integration of LT. And I'm also relying -- we've a terrific bench of people at ADI across all the facets of the management of the finance function of ADI. So we can -- we're very, very well positioned to ensure that we hit our targets in terms of the ongoing operation as well as the synergies. So synergies are on track, and we'll update you on where we are at the Investor Day in the latter part of June here.

克里斯，我告訴你，很顯然，我們已經聘請了獵人頭公司。我可以告訴大家的是，我們目前正取得非常好的進展。我預計最遲在本財政年度結束前，我們會任命一位接替人選。但我相當樂觀地認為，在此之前我們能夠發布一些相當不錯的消息。因此，在此期間，我將採取非常實際的方式來整合 LT。而且我還相信－ADI 在財務管理的各個方面都擁有一批非常優秀的人才。因此，我們完全有能力確保我們在持續營運以及協同效應方面實現目標。因此，協同效應正在按計劃進行，我們將在六月下旬的投資者日上向您報告最新進展。

Your next question is from Amit Daryanani with RBC Capital Markets.

下一個問題來自加拿大皇家銀行資本市場的 Amit Daryanani。

I guess, just a question on the Linear side. You've had this under your belt for a few months now. So I'm curious when it comes to revenue synergies, where are you guys more focused on to drive revenue synergies because I would imagine consumer might be the easiest place to get it or the quickest place to get it but perhaps not the most ideal one for you. So how do you think about the end markets and revenue synergies as you go forward?

我想問一個關於線性方面的問題。你已經熟練這項技能幾個月了。所以我很好奇，在所得綜效方面，你們更關注哪些方面來推動所得綜效？因為我認為消費者可能是最容易或最快實現收入綜效的地方，但可能不是你們最理想的選擇。那麼，展望未來，您如何看待終端市場和收入綜效？

Yes, well, I think as we've talked about earlier on, the various markets all have different cycles in terms of uptake, design cycles and adoption cycles. But I think obviously every sector in which we play, including consumer, has an opportunity for ADI to draw Linear Technology power management for additional revenue opportunity and growth. I would say in the -- it's the medium term to see the effect anyway of leveraging existing products and getting any meaningful revenue growth from those products, it's probably a 2- to 3-year proposition as we've experienced as well with Hittite. But I think the areas that we will see meaningful growth in the medium term here will be automotive, for sure. I think the communications sector will see a good uptick in the medium term. Very judiciously, as well, we're looking at some consumer opportunities. So obviously, those hit probably sooner than any other sector of the portfolio we manage. And I think industrial is 3 years plus from here. So I think that's the way to think about the adoption of existing products and new sockets and the effect that we should see on revenue growth here.

是的，正如我們之前討論過的，各個市場在吸收週期、設計週期和採用週期方面都有不同的週期。但我認為，顯然我們所涉足的每個領域，包括消費領域，ADI 都有機會利用凌力爾特電源管理技術來獲得額外的收入機會和成長。我認為，無論如何，要看到利用現有產品並從中獲得任何有意義的收入成長的效果，至少需要中期時間，這可能需要 2 到 3 年，就像我們在 Hittite 上所經歷的那樣。但我認為，中期內我們肯定會在汽車產業看到實質的成長。我認為通訊業在中期內將會出現良好的成長。同時，我們也非常謹慎地尋找一些消費領域的機會。顯然，這些板塊受到的衝擊可能比我們管理的投資組合中的任何其他板塊都要早。我認為工業化距離現在還有三年多的時間。所以我認為這就是思考現有產品和新插座的採用情況以及我們應該看到的對收入成長的影響的方式。

Did you have a follow-up?

您有後續跟進嗎？

Got it. I do, sir. I guess your consumer guide for July, modest sequential growth. I think last couple years, it's been triple digit-ish kind of number in the July quarter. The delta, do you think it's due later product launch in that segment or a change in the content that you guys have or maybe the OEMs will have more comfort around your ability to ram these products, so they're asking you to do it a little bit later? But it seems to be a fairly big delta versus what you've seen the last [2] years at least. Perhaps help explain what's driving that?

知道了。是的，先生。我猜想，7月的消費指南顯示，較上季成長幅度不大。我認為過去幾年，7 月的季度數字都接近三位數。你認為造成這種差異的原因是該細分市場的產品發佈時間較晚，還是你們的產品內容發生了變化，又或者是OEM廠商對你們的產品交付能力更有信心，所以才要求你們稍晚一些推出？但與過去兩年來的情況相比，這似乎是一個相當大的差距。或許可以幫忙解釋背後的原因？

So I guess, I'll take that. I think we answered the question earlier in the call. I think this is definitely something that is, I'd say, more related to ADI. And we just have our content in various products are very much SKU dependent, and we just think we'll have a different kind of a mix this year relative to previous years. But I'd say as we progress into 2018, my expectation is that our B2B mix -- our B2B markets expand as a percentage of total revenue as a result.

所以，我想我就接受吧。我認為我們在之前的通話中已經回答過這個問題了。我認為這絕對與ADI（加速發展研究所）更相關。我們各種產品的內容很大程度上取決於 SKU，我們認為今年的產品組合會與往年有所不同。但我認為，隨著我們進入 2018 年，我的預期是，我們的 B2B 業務組合——我們的 B2B 市場佔總收入的比例將會擴大。

Your next question is from Craig Ellis with B. Riley.

你的下一個問題來自 Craig Ellis 和 B. Riley。

Congratulations on your execution as you get started in the new era with Linear Tech. My question is regarding the synergies for the combined company. It's clear, Vincent, that the company's quite happy with the way the early combined work is going. The question is, does the progress on synergies thus far cause you to think differently about the linearity with which you expect to realize the $150 million in cost gains from the 2 companies?

恭喜你順利開啟與凌力爾特公司合作的新篇章。我的問題是關於合併後公司的綜效。文森特，很明顯，公司對早期聯合工作的進展非常滿意。問題是，到目前為止，協同效應方面取得的進展是否讓您對預期從這兩家公司實現 1.5 億美元成本收益的線性過程有了不同的看法？

No. I think when we've talked about synergies, we've been very clear that we've acquired LT for all its capabilities in terms of technology and customer management, channel management, operations and so on, to drive revenue synergy over the long term. But -- no, I think as I said in the prepared remarks, I'm very pleased with the progress that we're making. We've -- we had actually executed a lot of the decisions on the $150 million of synergies in advance of combining the companies. And the synergies are well identified and the actions are in place to get the synergies executed. So my sense is it'll take us, during the coming year, to really see the effects of the synergies in our P&L from a cost perspective. And a little bit longer than that, I think, as I've just been talking about to get the synergies from the cross-selling opportunities.

不。我認為，當我們談到協同效應時，我們已經非常明確地表示，我們收購 LT 是為了利用其在技術、客戶管理、通路管理、營運等方面的所有能力，從而在長期內推動收入協同效應。但是——不，我想正如我在準備好的演講稿中所說，我對我們所取得的進展非常滿意。實際上，在公司合併之前，我們已經就 1.5 億美元的綜效做了許多決定。協同效應已經明確，並且已經採取了行動來落實這些協同效應。因此，我的感覺是，在接下來的一年裡，我們需要從成本角度真正看到綜效對我們損益表的影響。而且我認為還需要更長的時間，正如我剛才所說的，要從交叉銷售機會中獲得協同效應。

Great, Craig. Another follow-up?

太好了，克雷格。還有後續問題嗎？

Yes, thanks for that, Ali. And I'll follow-up on end market communications. Vincent, I think you've mentioned 5G a couple times. And it seems like relative to 4G, the bigger picture is that, that seems to be more on track or maybe pulling in a little bit earlier versus what we had seen with some of the prior interface changes. But with regard to that opportunity, when would ADI expect 5G-related infrastructure revenues to start to become a material part of its communications segment?

是的，謝謝你，阿里。我也會跟進終端市場溝通事宜。文森特，我想你之前提到過幾次5G。相對於 4G 而言，從更宏觀的角度來看，它似乎更符合預期，或者說比我們之前看到的一些介面變化更早實現。但就這項機會而言，ADI預計5G相關基礎設施收入何時才能開始成為​​其通訊業務的重要組成部分？

Yes, I think your point is well taken. I think originally, when we began talking about 5G, we were talking about it being a facet of our business in kind of 2020-plus. It now seems that we're obviously in trials right now with 5G, all the major application areas, all the major customers globally. So my own sense is that we'll begin to see, I think, a meaningful ramp in revenue in the 2019 kind of area. Maybe it's a little sooner. Maybe it's a little later, but that's my sense at this point in time that there's an aggressive pull-in at the carrier level as well as the OEMs to make faster progress in deploying 5G.

是的，我認為你的觀點很有道理。我認為最初當我們開始談論 5G 時，我們指的是它在 2020 年及以後將成為我們業務的一個方面。現在看來，我們顯然正在對 5G 進行試驗，涵蓋所有主要應用領域，面向全球所有主要客戶。因此，我個人認為，我們將在 2019 年左右開始看到收入顯著增長。或許會提早一點。或許時間會稍晚一些，但就目前而言，我的感覺是營運商和原始設備製造商都在積極推動 5G 的部署，以加快部署進程。

Your next question is from Tristan Gerra with Baird.

你的下一個問題來自 Baird 公司的 Tristan Gerra。

You had mentioned that you recently that you've seen the small cell business finally picking up. What's your market share in that business, which I'm assuming has been fairly small, and what type of growth are we looking? And what type of revenue contribution could we get, let's say, in the next 12 to 18 months?

你最近提到過，你看到小型基地台業務終於開始好轉了。您在該業務中的市佔率是多少？我假設這個市佔率相當小。我們希望實現怎樣的成長？那麼，在接下來的 12 到 18 個月裡，我們能獲得什麼樣的收入貢獻呢？

Tristan, let me try and take a crack at that. I'm sure Vince would be much more eloquent than I could ever be. But in any event, I'd say on the small cell side, it's been a relatively small contributor to our growth. I guess, what we're particularly proud of are our integrated transceiver solutions that are picking up content both on macro base stations and in small cell base stations. So to be perfectly candid with you, we are pretty agnostic as to where these platforms end up. What is really important for ADI is the channel count. And so as long as you got more and more things that are connecting up, we tend to do extremely well when that happens. And so that could be a small cell. That could be a macro base station. But we're doing extremely well in the marketplace. We had another record quarter on top of a record quarter in the prior quarter in our integrated transceiver solutions that are just sucking up a lot of bill of materials and allowing us to gain share in this market. So interestingly, you saw our results this quarter. And again, it speaks to the diversity of our communications infrastructure market and our business. But our sequential revenue growth was led by wireless infrastructure, and our year-over-year growth was led by wireline infrastructure. So you can see the diversity there. The other point I'd make is with the addition of Linear Tech, our communications infrastructure business is more diversified than ever. In the past, about 2/3 of our calls business was wireless. At the current time, it's more like 50-50. So I think we have the full suite of technology, and we're pretty agnostic as to form factor. We've got the products, and I think really it's a question of, as the market percolates, we're going to do extremely well.

特里斯坦，讓我來試著解答。我相信文斯的口才肯定比我好得多。但無論如何，就小細胞而言，我認為它對我們的成長貢獻相對較小。我想，我們最引以為傲的是我們的整合式收發器解決方案，它可以在宏基地台和小型基地台接收內容。坦白說，我們對這些平台的最終走向持開放態度。對 ADI 來說，真正重要的是通道數量。所以，只要越來越多的事物相互連接，我們往往就能做得非常好。所以那可能是一個小型細胞。那可能是個宏基地台。但我們在市場上的表現非常出色。我們的整合式收發器解決方案在上一季度創下紀錄的基礎上，又迎來了一個創紀錄的季度，這些解決方案消耗了大量的物料，使我們能夠在這個市場中獲得份額。有趣的是，你們也看到了我們本季的業績。這再次體現了我們通訊基礎設施市場和業務的多樣性。但我們的環比收入成長主要由無線基礎設施推動，而我們的年收入成長則主要由有線基礎設施推動。所以你可以看出那裡的多樣性。我想提出的另一點是，隨著凌力爾特公司的加入，我們的通訊基礎設施業務比以往任何時候都更加多元化。過去，我們大約 2/3 的通話業務是無線通話。目前來看，大概是五五開吧。所以我覺得我們擁有全套技術，而且我們對外形尺寸也相當開放。我們有了產品，我認為真正的問題是，隨著市場逐漸消化，我們會做得非常好。

Yes, I think just to add a little bit of color to what Ali has said, small cell is still a small activity from a market perspective. We're very, very well positioned. And I think it will start to accelerate somewhat during the course of the next 12 to 18 months and become a more meaningful part of the overall wireless story in communications infrastructure.

是的，我想補充一下阿里剛才說的話，從市場角度來看，小型基地台仍然是一項規模較小的業務。我們處於非常非常有利的地位。我認為在接下來的 12 到 18 個月裡，這一趨勢將會加速發展，並成為無線通訊基礎設施整體發展中更重要的一部分。

See you answered it better than I would. Tristan, do you have a follow-up?

你回答得比我好多了。特里斯坦，你還有後續問題嗎？

Yes, if I could. And thanks for the very useful answer. It looks like your Hittite business has grown fairly significantly since the close. Could you provide some color on what's been driving that growth? Has it been share gain, new products or just distribution synergies? And the question really relates to how should we look at Linear Tech in terms of the experience that you've gained with Hittite and the revenue growth achievement that you've done with Hittite?

是的，如果可以的話。非常感謝您提供的有用答案。看來你的赫梯生意自關閉以來發展得相當迅速。能否詳細介紹一下推動這成長的因素？是市佔率提升、新產品推出，還是只是通路的綜效？這個問題實際上與我們應該如何看待凌力爾特公司有關，即根據您在 Hittite 專案中累積的經驗以及您在 Hittite 專案中取得的收入成長成就？

Okay. Let me try and unpack. There were a couple of key questions there. I think, with Hittite, we knew that the technology was very, very strong. And ADI -- one of the big synergies we got from acquiring Hittite was just the channel reach -- the customer reach and the channel reach that ADI had that Hittite didn't have, so we've been able to leverage that to tremendous effect. We knew that the portfolio of products was very, very strong, so that's been a huge help to us. Obviously, we've been able to architect. We've been together now almost 3 years, and we've been able to architect some really new creative solutions in areas like aerospace and defense, phased array antenna, for example, these days, these new radar systems that are being deployed as radar systems digitize across the globe. Even in instrumentation, where a lot of the high-frequency systems require the combination of mix signal and microwave technology. Obviously, in the automotive sector where all these microwave technologies are being deployed, having the combination of ADI and Hittite there has been really, really powerful. So I think it's -- it was a case of a lot of products that needed a new channel and a lot of re-architecting of customer systems based upon ADI's signal processing mix signal strength and Hittite's Microwave strength. So what was the second part of that question?

好的。讓我試著拆開看看。那裡有幾個關鍵問題。我認為，從赫梯人身上，我們就知道他們的技術非常非常強大。收購 Hittite 後，我們從中獲得的最大協同效應之一就是通路覆蓋範圍——ADI 擁有 Hittite 所不具備的客戶覆蓋範圍和通路覆蓋範圍，因此我們能夠有效地利用這一點。我們知道公司的產品組合非常強大，這對我們幫助很大。顯然，我們已經能夠進行架構設計。我們在一起已經快3年了，我們已經能夠在航空航天和國防等領域設計出一些真正新穎的創新解決方案，例如相控陣天線，如今，隨著全球雷達系統數位化，這些新型雷達系統正在部署中。即使在儀器儀表領域，許多高頻系統也需要將混合訊號和微波技術結合。顯然，在汽車領域，所有這些微波技術都在應用，ADI 和 Hittite 的結合確實非常強大。所以我覺得——很多產品都需要一個新的管道，並且需要根據 ADI 的訊號處理混合訊號強度和 Hittite 的微波強度對客戶系統進行大量的重新架構。那麼，這個問題的第二部分是什麼？

How would you leverage that to Linear?

你會如何將其應用於Linear？

So, leverage to Linear. I think the approach we have on the best of both was also true with Hittite. We tried to figure out how to be patient, understand the world-class capabilities that Hittite had in terms of people and technology. And we've taken the very same approach with LTC. LTC is obviously a world-class company as well. So just being patient, listening to create something greater than the sum of the parts, build a whole new operating system across the company for speed and simplification. That's what we did with Hittite, and that's what we're doing with LTC times 5.

所以，利用線性優勢。我認為我們對兩者取其精華的方法也適用於赫梯文明。我們努力想辦法保持耐心，理解赫梯在人才和技術方面所擁有的世界級能力。我們對長期照護也採取了同樣的做法。LTC顯然也是一家世界一流的公司。所以，只要保持耐心，傾聽，就能創造出大於各部分總和的成果，為整個公司建立一個全新的作業系統，以提高速度和簡化操作。我們對赫梯人就是這麼做的，我們現在對 LTC 5 倍也是這麼做的。

Thanks for the question. And we're zooming into the 11:00 hour here, so we're going to do our best to get to everybody. In case we can't, feel free to call our Investor Relations phone at (781) 461-3282. So we'll continue until 11.

謝謝你的提問。現在已經快到上午 11 點了，所以我們會盡力照顧到每一個人。如果無法解決您的問題，請隨時撥打我們的投資者關係電話 (781) 461-3282。所以我們會一直持續到11點。

Your next question comes from Stacy Rasgon with Bernstein Research.

下一個問題來自伯恩斯坦研究公司的史黛西·拉斯貢。

You talked a bit about the trajectory of synergies on OpEx. But what about on the $50 million in COGS? Can you give us a feeling for how much of that, if any, is embedded in the Q3 guidance? Where might we see that by the end of the year? And should we expect a different trajectory of capturing those gross margin synergies versus what you're suggesting we should think about for the OpEx side?

您剛才談到了營運支出綜效的發展軌跡。但是，那5000萬美元的銷售成本又該如何處理呢？您能否大致說明一下，第三季業績指引中是否包含了上述任何內容？如果有的話，具體包含多少？到今年年底我們可能會在哪裡看到這種情況？那麼，我們是否應該預期在實現毛利率綜效方面，會採取與您建議我們在營運支出方面應該考慮的不同的策略呢？

Yes, I'd say on the gross margin side, we're very early in the process. I'd say those are all very much on the come. I wouldn't expect to see those in Q3 or Q4 this year. Did you have a follow-up?

是的，就毛利率而言，我們目前還處於非常早期的階段。我認為這些都極有可能成為現實。我預計今年第三季或第四季不會看到這些。您有後續跟進嗎？

I did. On the OpEx or just on the cost synergies, in general, so it doesn't sound like you're quite ready to take the target up. But can you give us a feeling given how far you are in the planning phase and which areas have proved may be easier than you might have thought initially as well as more difficult? And if we were looking for potential upside, where do you think it might be easiest to squeeze more in?

我做了。就營運支出或成本綜效而言，總的來說，聽起來你還沒有完全準備好實現目標。但鑑於您目前已進入規劃階段，您能否談談您的感受，哪些領域可能比您最初想像的更容易，哪些領域可能更難？如果我們要尋找潛在的上漲空間，你認為在哪裡最容易增加投資？

Well, clearly we've been able to reduce the public company cost of the combined company. That's one of the things that's been executed pretty much straightaway. I think we had talked before as well about an early retirement program that we had put in place at ADI, and we begin to see the benefits of that fettering in over the next couple of quarters. But the -- and obviously distribution channel optimization as well that we had talked about before, that will start to show benefits to us I think towards the back end of this year and the early part of the coming year. So they're just 3 or 4 examples of the things that we've already got in play that we'll start to see the benefit of. And all the other synergies are identified. And we've got the actions in place, and we're now just ready to realize them.

顯然，我們已經成功降低了合併後公司的上市成本。這是已經立即執行的措施之一。我想我們之前也討論過我們在ADI實施的提前退休計劃，在接下來的幾個季度裡，我們開始看到這種限制帶來的好處。但是，我們之前討論過的分銷管道優化，我認為將在今年年底和明年年初開始為我們帶來好處。所以，這只是我們已經實施並開始看到成效的3到4個例子。其他所有協同效應也都已確定。我們已經制定了行動方案，現在只需付諸實行即可。

And Stacy, I would just add, we've talked about it before, but the EPS accretion in the third quarter is expected to be 15%. And I think if you start baking in some of these synergies into 2018, I think you get a number well north of that. So we look forward to updating you on the model and any potential updates on the synergy target next month at the analyst meeting. All right, I think we just hit the 11:00 hour. So listen, thank you, everybody, for joining us this morning. A copy of this transcript will be available on our website and all available reconciliations and additional information can also be found on the quarterly results section of our Investor Relations site at investor.analog.com. So thank you again for joining us this morning. We look forward to talking to you -- many of you next month. Take care.

史泰西，我還要補充一點，我們之前也討論過，預計第三季每股收益將成長 15%。我認為，如果你把這些綜效融入 2018 年的計畫中，你得到的數字將會遠高於這個數字。因此，我們期待在下個月的分析師會議上向您報告模型的最新進展以及協同效應目標的任何潛在更新。好了，我想我們已經到了11點。那麼，請聽我說，謝謝大家今天早上收看我們的節目。這張筆錄的副本將在我們的網站上提供，所有可用的調節表和補充資訊也可以在我們投資者關係網站 investor.analog.com 的季度業績部分找到。再次感謝您今天早上收看我們的節目。我們期待下個月與你們中的許多人交流。小心。

This concludes today's Analog Devices conference call. You may now disconnect.

今天的Analog Devices電話會議到此結束。您現在可以斷開連線了。