亞德諾半導體 (ADI) 2018 Q1 法說會逐字稿

Good morning, and welcome to the Analog Devices First Quarter Fiscal Year 2018 Earnings Conference Call, which is being audio webcast via telephone and over the web.

早安，歡迎參加 Analog Devices 2018 財年第一季財報電話會議，本次會議將透過電話和網路進行音訊直播。

I'd like to now introduce your host for today's call, Mr. Michael Lucarelli, Senior Manager of Investor Relations. Sir, the floor is yours.

現在我謹向大家介紹今天電話會議的主持人，投資者關係高級經理邁克爾·盧卡雷利先生。先生，請您發言。

Thank you, Jennifer, and good morning, everybody. Thanks for joining our first quarter 2018 conference call.

謝謝你，珍妮弗，大家早安。感謝您參加我們2018年第一季電話會議。

With me on the call are today are ADI CEO, Vincent Roche; and ADI CFO, Prashanth Mahendra-Rajah. Anyone who missed the release, you can find it and relating financial schedules at investor.analog.com. This conference call is being webcast live and a recording will be archived in the Investor section of our website.

今天和我一起參加電話會議的有 ADI 執行長 Vincent Roche 和 ADI 財務長 Prashanth Mahendra-Rajah。錯過此次發表會的各位，可在 investor.analog.com 上找到發表會內容及相關財務報表。本次電話會議將進行網路直播，錄音將存檔於我們網站的投資者關係版塊。

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

接下來是資訊揭露部分。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。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聲明的義務。

Our commentary about ADI's first quarter financial results will include non-GAAP financial measures, which exclude special items. When comparing our first quarter results to our historical performance, special items are also excluded from the prior quarter and year-over-year results. 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. And lastly, I'd like to remind investors that our first quarter was a 14-week quarter.

我們對ADI第一季財務表現的評論將包括非GAAP財務指標，其中不包括特殊項目。在將我們第一季的業績與歷史業績進行比較時，特殊項目也已從上一季和去年同期業績中剔除。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 網站“季度業績”欄目的網絡日程表中。最後，我想提醒各位投資者，我們第一季是 14 週。

Okay. So with that, I'll turn it over to ADI CEO, Vincent Roche. Vince?

好的。那麼，接下來我將把發言權交給ADI執行長Vincent Roche。文斯？

Thanks, Mike, and good morning, everyone. Well, the first quarter of fiscal '18 was another very successful quarter for ADI with momentum continuing across our business, and I'm very pleased to share our results with you now.

謝謝你，麥克，大家早安。2018 財年第一季對 ADI 來說又是一個非常成功的季度，我們各項業務都保持著強勁的成長勢頭，我很高興現在與大家分享我們的業績。

Revenue in the first quarter came in at the high end of our guidance as strength across our B2B markets offset the expected decline in our consumer business. Our strong execution as a combined company delivered substantial growth and operating margin expansion compared to the year ago quarter, resulting in a 50% increase year-over-year in our non-GAAP diluted earnings per share. And our combined company adjusted free cash flow margins over the trailing 12 months continues to place us in the highest tier in the S&P 500.

第一季營收達到我們預期的高端水平，B2B市場的強勁表現抵消了消費者業務的預期下滑。合併後的公司憑藉著強勁的執行力，實現了與去年同期相比的大幅增長和營業利潤率擴張，從而使我們的非GAAP稀釋後每股收益同比增長了50%。我們公司過去 12 個月的合併調整後自由現金流利潤率繼續使我們在標普 500 指數中處於最高水平。

So digging into our markets. The industrial end market consisting of a diverse, highly fragmented set of applications represented approximately 50% of sales in the quarter. Our sales into this market have been stellar, increasing an average of 8% annually over the past 5 years, outperforming GDP by 2 to 3x.

所以，我們要深入挖掘我們的市場。工業終端市場由一系列多樣化、高度分散的應用組成，該季度約佔銷售額的 50%。我們在該市場的銷售業績非常出色，過去 5 年平均每年增長 8%，比 GDP 增長 2 到 3 倍。

I'd like to spend some time today now providing a little insight into why we believe we've outperformed in this market and why we remain excited for the future. On a broad level, we believe we've gained market share by targeting the right applications, developing the right products and bringing our domain expertise to bear as we engage with our customers at a more system-oriented level. For example, in our instrumentation business, our cutting-edge mixed-signal RF and microwave and power solutions are enabling the most advanced test solutions for 5G data center operations and battery formation deployment for new and existing customers.

今天我想花點時間，稍微闡述一下我們為什麼認為我們在這個市場中表現優異，以及為什麼我們對未來仍然充滿信心。從廣義上講，我們相信，透過瞄準正確的應用領域、開發正確的產品，並在與客戶進行更系統化的互動時運用我們的領域專業知識，我們已經獲得了市場份額。例如，在我們的儀器儀表業務中，我們先進的混合訊號射頻、微波和功率解決方案，為新舊客戶提供了最先進的 5G 資料中心營運和電池形成部署測試解決方案。

The aerospace and defense sector continues to be a strong growth market for ADI also. This business is driven largely by fleet modernization and the development and deployment of complex applications that require the highest-performing electronics, such as phased-array radar. The combination of ADI's mixed signal, Hittite’s microwave and LTC's power portfolios enables us unprecedented levels of integration across the signal chain and more than doubles our available market.

航空航太和國防領域對ADI而言仍然是一個強勁的成長市場。該業務主要由艦隊現代化以及需要最高性能電子設備（如相控陣雷達）的複雜應用的開發和部署所驅動。ADI 的混合訊號、Hittite 的微波和 LTC 的功率產品組合相結合，使我們能夠在整個訊號鏈中實現前所未有的整合水平，並將我們的可用市場擴大一倍以上。

Our industrial automation and process control business continues to benefit as factory floors transform to become more flexible and more automated. Customers are striving for higher overall productivity and a higher variety of output. In this changing landscape, our technology breadth and domain expertise is positioning us to win more of the BOM with customers worldwide. We're engaged in brownfield upgrades and greenfield installations.

隨著工廠車間向更靈活和自動化的方向轉型，我們的工業自動化和製程控制業務持續受益。客戶追求更高的整體生產效率和更多樣化的產品。在這種不斷變化的環境中，我們廣泛的技術實力和專業知識使我們能夠贏得全球客戶更多的物料清單 (BOM) 訂單。我們從事現有設施的改造升級和新建項目的建設。

Looking to the future of automation and process control, also referred to as the industrial IoT, we believe that our customer engagements combined with emerging trends, such as artificial intelligence-enabled machines, sensor-to-cloud data processing, ubiquitous sensing and true real-time connectivity, will enable consistent content expansion for ADI.

展望自動化和製程控制的未來（也稱為工業物聯網），我們相信，我們的客戶互動與人工智慧賦能的機器、感測器到雲端的資料處理、無所不在的感測和真正的即時連接等新興趨勢相結合，將使 ADI 的內容持續擴展。

For example, on the factory floor of the future, robots and cobots will increasingly require more sensing modalities such as vibration, proximity and depth sensing as well as the highly synchronized real-time communications capabilities that we are bringing to market. These developments open the opportunity to expand our dollar content by a factor of 5.

例如，在未來的工廠車間裡，機器人和協作機器人將越來越需要更多感測方式，例如振動、接近和深度感測，以及我們正在推向市場的高度同步的即時通訊能力。這些發展為我們提供了將美元含量提高 5 倍的機會。

In short, we see continued momentum across our industrial applications as we move into 2018. And that, coupled with the underlying sector trends I've just described, should position us for profitable growth over the long term in this area.

簡而言之，隨著我們邁入 2018 年，我們看到工業應用領域將繼續保持成長勢頭。而這一點，再加上我剛才描述的潛在產業趨勢，應該能讓我們在這個領域實現長期獲利成長。

So turning now to the communications market. This sector represented 19% of sales in the first quarter and benefited from strong growth in wireless compared to the year ago quarter while wired demand remained weak. Our wireless business has increased at a high single-digit rate over the trailing 12 months due to share gains from recently released products co-designed with Hittite, strong demand for our integrated transceiver solutions and our position in virtually all emerging 5G and massive MIMO trials.

現在讓我們來看看通訊市場。該產業在第一季佔銷售額的 19%，受益於無線業務的強勁成長（與去年同期相比），而有線業務的需求仍然疲軟。由於與 Hittite 共同設計的最新產品帶來的市場份額成長、對我們整合收發器解決方案的強勁需求以及我們在幾乎所有新興 5G 和大規模 MIMO 試驗中的地位，我們的無線業務在過去 12 個月中實現了高個位數的成長。

We remain excited about our wireless infrastructure business as we continue to grow share and increase content despite a relatively flat CapEx environment. ADI's portfolio of RF and microwave, high-speed signal processing and power management is unmatched in breadth and depth. This portfolio, combined with our deep customer focus in the bigger verticals as well as in the broad market, is fueling our success.

儘管資本支出環境相對平穩，但我們對無線基礎設施業務仍充滿信心，因為我們將繼續擴大市場份額並增加內容。ADI 在射頻和微波、高速訊號處理和電源管理方面的產品組合，無論從廣度或深度來看，都是無與倫比的。這個產品組合，加上我們對大型垂直行業和廣泛市場的深入客戶關注，正在推動我們的成功。

Turning now to our automotive business. At 17% of sales, it performed better than our typical seasonality in the first quarter on strength from the infotainment and powertrain application areas. Our powertrain solutions that improve efficiency of both combustion engines and electric vehicles grew stronger than seasonal.

現在我們來談談汽車業務。該產品佔銷售額的 17%，在第一季表現優於我們通常的季節性波動，這主要得益於資訊娛樂和動力系統應用領域的強勁表現。我們能夠提高內燃機和電動車效率的動力系統解決方案，其成長勢頭強勁，超過了季節性波動的影響。

We see this business becoming increasingly important for us, particularly as OEMs embrace broad electrification of their fleets. Our infotainment application area has grown at a high single-digit rate over the past 5 years, thanks to our market leadership in high-performance audio and video solutions that improve the passenger experience. We see continued momentum with our innovative A2B technology, which has secured design wins at major OEMs in every geographical region and is enabling creative new audio architectures that will come to market over the next few years.

我們認為這項業務對我們來說變得越來越重要，尤其是在汽車製造商全面推行車隊電氣化的情況下。過去 5 年，我們的資訊娛樂應用領域以接近兩位數的速度成長，這得益於我們在高性能音訊和視訊解決方案方面的市場領先地位，這些解決方案能夠改善乘客體驗。我們看到，我們創新的 A2B 技術持續發展，已在各個地區的主要 OEM 廠商中贏得設計訂單，並正在催生出富有創意的全新音頻架構，這些架構將在未來幾年內推向市場。

So these businesses, combined with our organic and technology acquisitions for next-gen sensing technologies necessary, for example, in Level 3 and beyond safety systems for autonomous vehicles, gives me great confidence that we're well positioned to grow at our long-term model of 2 to 3x SAAR. In our consumer business, revenue decreased as expected both sequentially and compared to a year ago quarter and represented 16% of sales in the first quarter.

因此，這些業務，加上我們為下一代感測技術（例如自動駕駛汽車 L3 及以上安全系統所必需的技術）而進行的有機增長和技術收購，讓我非常有信心，我們已做好充分準備，以 2 到 3 倍 SAAR 的長期模式實現增長。在我們的消費者業務中，收入如預期般環比下降，與去年同期相比也有所下降，佔第一季銷售額的 16%。

So before I hand the call over to Prashanth, I'd like to give you an update on our LTC integration progress. It's been nearly a year since we closed the acquisition, and we've made tremendous progress integrating and building something that we believe is greater than the sum of its parts by following a best-of-both approach. At this point, everyone in our company across the entire organization, sales, engineering operations, manufacturing and so on -- is working towards a common goal of delivering long-term profitable growth. And when you look at traditional measures of M&A success, our exceptional employee retention and strong financial results over the past year speak for themselves.

在將電話交給 Prashanth 之前，我想先向大家報告我們 LTC 整合的進展。收購完成至今已近一年，我們透過採取「取長補短」的方法，在整合和建構方面取得了巨大進展，我們相信，最終的成果將大於各部分之和。目前，我們公司所有部門，包括銷售、工程營運、製造等各個環節，都在朝著實現長期獲利成長的共同目標努力。從傳統的併購成功指標來看，我們過去一年出色的員工留任率和強勁的財務表現足以說明一切。

So we're on track to achieve the initial cost synergies we targeted when we announced the deal, and we continue to believe that we can realize meaningful revenue synergies over the long term given the complementarity of our customer bases and products. As a rule of thumb, we believe that for every dollar of mixed-signal content ADI sells into a system, there's at least an equal value power opportunity that ADI can now more fully address. With our sales and adjoining teams now integrated on working together, our opportunity pipeline continues to expand, giving us more confidence in converting that $1 billion-plus synergy opportunity into revenue.

因此，我們正朝著實現宣布交易時設定的初始成本協同效應目標穩步前進，並且鑑於我們客戶群和產品的互補性，我們仍然相信，從長遠來看，我們可以實現有意義的收入協同效應。根據經驗，我們認為，ADI 每向系統銷售一美元的混合訊號內容，就至少有一個等值的電力機會，而 ADI 現在能夠更充分地利用這個機會。隨著我們的銷售團隊和相關團隊的整合，我們的商機管道不斷擴大，這讓我們更有信心將超過 10 億美元的協同效應機會轉化為收入。

So to wrap it up, fiscal '18 is off to a very strong start. Analog Devices' capabilities to effectively and efficiently bridge the digital and physical domains are needed more than ever as the world becomes more digital, more autonomous and more connected. With our ability to address opportunities from sensor to cloud, DC to 100 gigahertz and beyond, and nanowatts to kilowatts, we're confident in our ability to create shareholder value for years to come.

總而言之，2018 財年開局非常強勁。隨著世界變得越來越數位化、越來越自動化、越來越互聯，Analog Devices 有效且有效率地連接數位和實體領域的能力比以往任何時候都更加重要。憑藉我們應對從感測器到雲端、從直流電到 100 吉赫茲及以上、從納瓦到千瓦等各種機會的能力，我們有信心在未來幾年為股東創造價值。

And so with that, let me hand it over to Prashanth.

那麼，接下來就交給普拉桑特吧。

Thank you, Vince. Good morning, everyone, and let me add my welcome to our fiscal 2018 first quarter earnings call. With the exception of revenue and nonop expenses, my comments on the P&L line items will be on a non-GAAP or adjusted basis, which excludes special items outlined in today's press release.

謝謝你，文斯。各位早安，歡迎參加我們2018財年第一季財報電話會議。除了收入和非經營性支出外，我對損益表各項目的評論將以非GAAP或調整後為基礎，其中不包括今天新聞稿中概述的特殊項目。

Before I get to our results for the quarter, I want to address 3 items: first, our recent announcement aimed around the streamlining of our global operations; second, the impact from the Tax Cuts and Job Acts; and lastly, an update on our progress deleveraging.

在介紹本季業績之前，我想先談談三件事：第一，我們最近宣布的旨在精簡全球運營的計劃；第二，減稅和就業法案的影響；最後，我們去槓桿化進展的最新情況。

Last month, we announced our intention to close our Hillview wafer fab and Singapore test operations. Following a careful and thoughtful analysis, we validated this decision based on the capabilities and overall strength of the world-class supply chain that we have built organically and through acquisition. It will take us about 3-plus years to wind down these operations and ensure a smooth transition for our customers. Once complete, these 2 factory closures represent a significant portion of the additional $100 million of cost synergies we outlined at our Analyst Day in June '17.

上個月，我們宣布了關閉位於希爾維尤的晶圓廠和新加坡測試業務的計畫。經過仔細深思熟慮的分析，我們基於自身發展和收購所建立的世界級供應鏈的能力和整體實力，驗證了這個決定。我們需要三年以上的時間來逐步結束這些業務，並確保客戶的平穩過渡。一旦完成，這兩家工廠的關閉將占我們在 2017 年 6 月分析師日上概述的額外 1 億美元成本協同效應的很大一部分。

Our current quarter GAAP results include a charge of $57 million, the majority of which relate to this action and will be cash. The overall program, which will include some expenses in future periods, will have a good payback of approximately 1 year.

我們本季的 GAAP 業績包括 5,700 萬美元的費用，其中大部分與此行動有關，並將以現金支付。整個計劃（包括未來一段時間內的一些支出）將在大約 1 年內收回成本。

Next, I want to summarize the impact of the Tax Cuts and Jobs Act on ADI with the caveat that these are our initial estimates and could change as we refine our analysis. Investors should assume no change to our previously discussed long-term non-GAAP tax rate of approximately 12%, a level which we expect to return to in fiscal '19. This comprehends the benefits of a lower statutory rate, offset by a higher rate on foreign earnings. However, our 2018 non-GAAP tax rate is forecasted to be in the range of 6% to 8% as the higher rate on our foreign earnings does not take effect until our next fiscal year.

接下來，我想總結《減稅與就業法案》對 ADI 的影響，但需要說明的是，這些只是我們的初步估計，隨著我們完善分析，這些估計可能會改變。投資者應假設我們之前討論過的長期非GAAP稅率約為12%，不會發生變化，我們預計該稅率將在2019財年恢復到該水平。這反映了法定稅率降低的好處，但同時也反映了海外所得稅率提高的負面影響。然而，由於我們海外收益的較高稅率要到下一個財政年度才會生效，因此我們 2018 年的非 GAAP 稅率預計在 6% 到 8% 之間。

So let me take a moment to reconcile our first quarter GAAP to non-GAAP tax rate. In the first quarter of '18, our GAAP tax expense included a net charge of $47 million related to tax reform. This charge included an approximately $690 million accrual on the tax on indefinitely reinvested earnings, which was almost completely offset by approximately $640 million noncash reduction in our deferred tax balances.

那麼，讓我花點時間來核對我們第一季的GAAP稅率和非GAAP稅率。2018 年第一季度，我們的 GAAP 稅收支出包括與稅收改革相關的 4,700 萬美元淨支出。這項費用包括約 6.9 億美元的無限期再投資收益稅的計提，這幾乎完全被我們遞延所得稅餘額中約 6.4 億美元的非現金減少所抵消。

We plan to pay this tax over 8 years beginning in fiscal '19, and we expect to pay approximately $60 million in each of the first 5 years and the remaining balance over the following 3 years. The end result from tax reform is that ADI can more optimally utilize the entirety of its cash position and continue to delever and return value to shareholders.

我們計劃從 2019 財年開始，分 8 年繳納這筆稅款，預計前 5 年每年繳納約 6,000 萬美元，剩餘部分將在接下來的 3 年內繳納。稅改的最終結果是，ADI 可以更有效地利用其全部現金儲備，繼續降低槓桿率，並為股東創造價值。

Which brings me to my last topic: leverage. We exited our first fiscal 2018 quarter with a net debt-to-EBITDA ratio of 2.4, down from 2.6 in the prior quarter and down from 3x at the close of the LTC deal last year. Given our strong cash flow generation capabilities, the momentum across our business and the benefits associated with tax reform, we have confidence that we can reduce our debt by at least $1 billion annually, and we now expect to achieve our 2x leverage milestone exiting the fourth fiscal quarter of 2018. And once we achieve this leverage ratio, we will revisit our cap allocation strategy to ensure that we continue to optimize shareholder value.

這就引出了我的最後一個主題：槓桿作用。2018 財年第一季結束時，我們的淨負債與 EBITDA 比率為 2.4，低於上一季的 2.6，也低於去年 LTC 交易結束時的 3 倍。鑑於我們強大的現金流生成能力、業務發展勢頭以及稅收改革的好處，我們有信心每年至少減少 10 億美元的債務，並且我們現在預計將在 2018 財年第四季末實現 2 倍槓桿率的目標。一旦我們達到這個槓桿率，我們將重新審視我們的資本分配策略，以確保我們繼續優化股東價值。

So now let's discuss the quarter. As Vince mentioned, the 14-week first quarter of 2018 was a very strong quarter for ADI. Revenue was $1.52 billion, above the midpoint of guidance and increased 54% year-over-year while declining 1% sequentially in the seasonally slower first quarter. Looking at the combined company and excluding or backing out the benefit of the 14th week, our B2B revenue increased 10% year-over-year, led by growth in the industrial market, which increased mid-teens compared to the same quarter a year ago. Gross margins of 71% came in at the upper end of guidance and increased slightly compared to the fourth quarter.

現在我們來討論一下本季的情況。正如文斯所提到的，2018 年第一季（共 14 週）是 ADI 表現非常強勁的一個季度。營收為 15.2 億美元，高於預期中位數，年增 54%，但季減 1%（第一季通常是淡季）。從合併後的公司來看，如果排除或剔除第 14 週的收益，我們的 B2B 收入同比增長 10%，這主要得益於工業市場的增長，該市場與去年同期相比增長了 15% 左右。毛利率為 71%，處於預期上限，較第四季略有成長。

Op expenses in the first quarter were $446 million or 29% of revenue. And on a 13-week basis, op expenses declined about 5% sequentially. We've now completed the OpEx synergies outlined in our LTC deal announcement. Strong revenue growth and operating leverage delivered operating margin of 41.7%, at the upper end of guidance.

第一季的營運費用為 4.46 億美元，佔營收的 29%。以 13 週計算，營運費用較上季下降約 5%。我們現已完成 LTC 交易公告中概述的營運支出綜效。強勁的營收成長和營運槓桿作用使營業利潤率達到 41.7%，處於預期上限。

Nonop expenses in the first quarter were $66 million. We expect our nonop expenses to be approximately $60 million in our second quarter and to decline by $2 million to $3 million per quarter in fiscal '18.

第一季非營運支出為 6,600 萬美元。我們預計第二季非經營性支出約為 6,000 萬美元，2018 財年每季將減少 200 萬至 300 萬美元。

Our first quarter non-GAAP tax rate was 6%. And as previously discussed, we expect our non-GAAP tax rate for '18 to be in the range of 6% to 8% before increasing to the long-term expected rate of approximately 12% for fiscal '19.

我們第一季的非GAAP稅率為6%。如同先前討論過的，我們預計 2018 年的非 GAAP 稅率將在 6% 至 8% 之間，然後在 2019 財年上升到長期預期的約 12% 的稅率。

Non-GAAP diluted EPS for the first quarter was $1.42, and this included a benefit of $0.09 related to our lower tax rate. Excluding this benefit, our non-GAAP EPS came in at the upper end of the guided range.

第一季非GAAP稀釋後每股收益為1.42美元，其中包括因稅率較低而獲得的0.09美元收益。剔除這項收益後，我們的非GAAP每股收益達到了預期範圍的上限。

That wraps up the P&L, and I'll move to the balance sheet. Inventory increased 2% sequentially or $9 million, primarily the result of our decision to keep production levels commensurate with bookings to maintain the customer service levels based on the B2B demand environment. As a result, days of inventory increased to 124, and we expect days to decline over the balance of the year beginning in the second quarter.

損益表部分到此結束，接下來我將分析資產負債表。庫存較上季成長 2%，即 900 萬美元，這主要是由於我們決定保持生產水準與預訂量相符，以在 B2B 需求環境下維持客戶服務水準。因此，庫存週轉天數增加到 124 天，我們預計從第二季開始，庫存週轉天數將在今年剩餘時間內下降。

Distribution inventory was approximately 7.5 weeks, up slightly compared to the year ago quarter but in line with our outlook. We generated free cash of $325 million in the quarter. And in the trailing 12 months, adjusted free cash flow for the combined company was $1.8 billion. CapEx additions in the fourth quarter were $63 million, and we expect CapEx in fiscal '18 to run at our model of about 4% of sales.

分銷庫存約為 7.5 週，比去年同期略有增加，但符合我們的預期。本季我們產生了 3.25 億美元的自由現金流。過去 12 個月，合併後公司的調整後自由現金流為 18 億美元。第四季新增資本支出為 6,300 萬美元，我們預計 2018 財年的資本支出將按照我們設定的銷售額的 4% 左右的比例運作。

During the quarter, we paid $167 million in dividends. Our Board of Directors approved yesterday a 7% increase in the quarterly dividend to $0.48 per share, which represents an annual dividend of $1.92.

本季度，我們支付了 1.67 億美元的股息。我們的董事會昨天批准將季度股息提高 7%，至每股 0.48 美元，相當於年度股息 1.92 美元。

So now I'll move to the outlook and expectations for the second quarter of fiscal 2018, which with the exception of revenue, are also on a non-GAAP basis and exclude items outlined in today's release.

接下來，我將展望 2018 財年第二季的業績和預期，除收入外，其他數據均以非 GAAP 準則為基礎，並不包括今天發布的公告中列出的項目。

We're planning for revenue in the second quarter to be in the range of $1.43 billion to $1.51 billion, an increase of 22% compared to the year ago quarter at the midpoint. As a reminder, first quarter was a 14-week quarter and second quarter is back to a normal 13-week quarter. Adjusting for this, we are planning our B2B markets, which include industrial, automotive and comms, in the aggregate to increase at a high single-digit rate sequentially and thus represent a larger mix of business.

我們預計第二季營收將在 14.3 億美元至 15.1 億美元之間，與去年同期相比成長 22%（取中間值）。提醒一下，第一季為 14 週，第二季恢復為正常的 13 週。考慮到這一點，我們計劃將包括工業、汽車和通訊在內的 B2B 市場整體實現高個位數環比成長，從而代表更多元化的業務組合。

We're planning for gross margins to be in the range of 71% to 71.5% due to a more favorable mix and as we capture the final amount of our initial tranche of COGS synergies. We expect OpEx to be in the range of $430 million to $440 million in the second quarter. And at the midpoint of this guidance, this implies a sub-30% OpEx as a percentage of sales once again. Based on these inputs, we expect operating margins in the second quarter of '18 to be in the range of 41% to 42.5% and for diluted EPS, excluding special items, to be in the range of $1.30 to $1.44.

由於產品組合更加有利，並且我們最終實現了首批銷售成本協同效應，我們預計毛利率將在 71% 至 71.5% 之間。我們預計第二季營運支出將在 4.3 億美元至 4.4 億美元之間。依照該準則的中點計算，這意味著營運支出佔銷售額的比例將再次低於 30%。根據這些投入，我們預計 2018 年第二季的營業利潤率將在 41% 至 42.5% 之間，不計特殊項目的稀釋後每股收益將在 1.30 美元至 1.44 美元之間。

So to summarize, we're off to a great start for the year. Industrial continues to have momentum across all our application areas. We're outperforming in comms driven by our strong position in wireless. In automotive, we're making great progress on putting the combined company on a strong growth trajectory. As Vince mentioned, the LTC integration is going very well. Our innovation pipeline is rich, and we are just getting started.

總而言之，我們今年開局非常順利。工業領域在所有應用領域都持續保持成長勢頭。我們在通訊領域表現出色，這得益於我們在無線通訊領域的強大地位。在汽車領域，我們正在取得巨大進展，使合併後的公司走上強勁的成長軌道。正如Vince所提到的，LTC的整合進展非常順利。我們的創新管道非常豐富，而我們才剛起步。

With that, let me turn it over to Mike for our Q&A session.

接下來，我將把問答環節交給麥克。

Okay. Let's get to our Q&A session. (Operator Instructions) Operator, can we have our first question, please?

好的。接下來進入問答環節。（操作員指示）操作員，請問我們可以問第一個問題嗎？

(Operator Instructions) Our first question comes from Craig Hettenbach with Morgan Stanley.

（操作員說明）我們的第一個問題來自摩根士丹利的克雷格·赫滕巴赫。

A question for Vince. Just your commentary about market share gains, can you provide any specific examples there and kind of how you view where you are in that process in terms of it translating into revenue?

問文斯一個問題。關於市場佔有率成長，您能否提供一些具體的例子，並說明您如何看待您在這過程中所處的階段，以及這些成長如何轉化為收入？

Yes. I think we're able to talk about market share gains in several sectors, Craig. And if I just go to the industrial sector, for example, I think we've talked before about aerospace and defense being an area of increasing opportunity, system complexity and the place where we're able to combine the rich portfolio of the Hittite Microwave technologies with ADI's mixed signal. And we're seeing continued digitalization in that space, fleet upgrades, and we're benefiting from that enormously. And also in automation, just the sheer breadth of what we have and the focus that we've had over the last several years in tuning the R&D portfolio, resteering our sales force globally into making sure that we keep our leadership position at the large customers is benefiting enormously the whole growth story. Also, with the combination of LTC, as you know, the market overlaps were quite high between LTC and ADI. But the actual areas where our sales forces were playing were pretty complementary. So we're gaining, I think, at the large customers, the small customers with more breadth and depth in terms of portfolio than we've ever had. If you look at the communication sector, I think, again, we're starting to see the benefit now of the -- particularly in the wireless area of the codesign products with Hittite combined with ADI's, again, strength on the mixed-signal side in traditional macro base stations. Our integrated transceivers are becoming, if you like, the standard now for massive MIMO developments in these hybrid macro small-cell systems, where phased-array antenna systems are being used with traditional antenna systems. So our software-defined transceiver is really the standard, the benchmark now in that sector. And as the trials begin for massive MIMO and 5G, we're in virtually all those trials globally. So I think those are just 2 -- some subsets in the industrial area and particularly in the wireless area in communications where we have demonstrable gains, I believe, in market share.

是的。克雷格，我認為我們可以討論幾個行業的市場份額成長問題。例如，如果我只談工業領域，我想我們之前已經討論過航空航天和國防領域是一個充滿機會、系統日益複雜，並且能夠將 Hittite Microwave 豐富的技術組合與 ADI 的混合信號技術相結合的領域。我們看到該領域正在不斷推進數位轉型，機隊也不斷升級，我們從中受益匪淺。此外，在自動化領域，我們擁有的廣泛資源以及過去幾年我們在調整研發組合、重新引導全球銷售團隊以確保我們在大客戶中保持領先地位方面所投入的精力，都極大地促進了整個增長。另外，如您所知，LTC 和 ADI 之間的市場重疊度相當高。但我們銷售團隊實際開展業務的領域是相當互補的。所以我認為，我們在大客戶和小客戶群中都取得了進展，我們的產品組合的廣度和深度都比以往任何時候都要好。如果你看看通訊領域，我認為，我們現在又開始看到——尤其是在無線領域——Hittite 的協同設計產品與 ADI 在傳統宏基地台混合訊號方面的優勢相結合所帶來的好處。我們的整合式收發器正在成為這些混合宏小蜂巢系統中大規模 MIMO 發展的標準，在這些系統中，相控陣天線系統與傳統天線系統一起使用。因此，我們的軟體定義收發器現在確實是該領域的標準和標竿。隨著大規模 MIMO 和 5G 試驗的開始，我們幾乎參與了全球所有此類試驗。所以我認為這只是兩個例子——工業領域的一些子領域，特別是無線通訊領域，我相信我們在市場份額方面取得了明顯的進展。

Your next question comes from the line of Ambrish Srivastava with BMO.

你的下一個問題來自 Ambrish Srivastava 與 BMO 的對話。

My first question was, can you just help us understand the deltas you had in the business segments? Just help us understand what happened as the quarter progressed in terms of the guidance that you had provided and the results that you ended up with.

我的第一個問題是，您能否幫我們了解您在各個業務板塊中存在的差異？請您幫助我們了解一下，隨著季度的推進，您之前給出的業績指引與最終結果之間究竟發生了什麼。

Can you clarify that question, Ambrish? Are you asking sequentially how the business did in the reported results?

Ambrish，你能解釋一下這個問題嗎？您是想依序詢問該企業在已公佈的業績報告中的表現嗎？

Yes. My question is you had guided to certain results for -- expectations for the -- for all the segments, but then the results came in different for each of the segment, particularly in the automotive and also in industrials. So what transpired that your results were different than what you were expecting initially?

是的。我的問題是，您曾引導大家對各個細分市場做出某些預期結果，但結果卻因細分市場而異，尤其是在汽車和工業領域。那麼，究竟發生了什麼，導致你的結果與最初的預期有所不同？

Yes. Thanks, Ambrish. So as a reminder, we no longer give guidance at the segment level, so we did not provide that for the first quarter. We did provide some broad indications on how B2B would do versus consumer. But now that the results are actual, Mike can kind of walk you through how each of the B2B segments -- each of the components of our B2B did on a year-over-year basis, which across the board were very good.

是的。謝謝你，安布里什。因此再次提醒大家，我們不再提供分部層級的績效指引，所以第一季我們沒有提供這方面的指引。我們確實提供了一些關於 B2B 業務與面向消費者業務表現差異的大致方向。但現在結果已經出來了，Mike 可以帶你了解每個 B2B 細分市場——我們 B2B 的每個組成部分——的同比表現，總體而言都非常好。

Yes. So Ambrish, we guided to B2B to be down mid-single digits. B2B came down 3% sequentially on a combined company basis, but I think they’re pretty good result in the first quarter. If you look at automotive business, it was down 2% sequentially, which is a bit better than typical seasonality. We -- it's highlighted in his prepared comments, infotainment, powertrain application areas were stronger. Our communications business, it's tough. There's really no seasonality in that business. But I think what's important there, it grew year-over-year. And it really was led by our wireless growth, which is up double digits year-over-year. And industrial was down about 3% sequentially on an adjusted basis or up mid-teens percent year-over-year. Once again, very good strong growth there. In consumer, we saw it as weak. It was weak. It performed as we expected. Do you have a follow-up?

是的。所以 Ambrish，我們預期 B2B 業務將會下降個位數中段。B2B業務以公司整體計算季減3%，但我認為他們第一季的業績相當不錯。如果你看一下汽車產業，它環比下降了 2%，這比典型的季節性波動要好一些。我們——這一點在他的準備好的評論中得到了強調，資訊娛樂、動力系統應用領域更加強勢。我們的通訊業，日子不好過。這個行業其實沒有季節性。但我認為重要的是，它逐年增長。這主要得益於我們的無線業務成長，其年成長率達到了兩位數。經調整後，工業價格季減約 3%，年減 15% 左右。再次證明，該地區成長勢頭強勁。在消費者方面，我們認為它很弱。它很弱。它的表現符合預期。您還有後續問題嗎？

Yes, I did. Sorry. My question was on the inventory side. Inventories were up. And I think if I look back at the last several years, typically in the quarter, inventories are either flat or down on a dollar basis. But you said that you build inventory. But as you go through the year, in terms of days, you expect inventories to come down. So just kind of help us understand what are you seeing and then why should inventory be trending down as we go through the year?

是的，我做了。對不起。我的問題是關於庫存方面的。庫存上升了。我覺得，如果回顧過去幾年，通常按季度來看，庫存要么持平，要么下降（以美元計）。但你說過你會建立庫存。但隨著時間的推移，以天數計算，庫存預計會下降。所以，請您幫我們理解您觀察到的情況，以及為什麼庫存會隨著時間的推移而呈下降趨勢？

Yes, okay. Thanks, Ambrish. Thanks for the question. So inventory was up 2% or about $9 million quarter-over-quarter. Most of that $9 million was built for the B2B markets, and that was driven by a strategic decision we made to keep the production levels sort of commensurate with the bookings idea, bookings outlook that we had driven by, one, making sure that we can maintain the high levels of customer service that are needed and to target our lead times sort of in that 4- to 6-week range. The -- like everyone looks at inventory levels as an indicator or as a canary in the coal mine of what demand looks like, and I would say that all the other indicators we're following remain very green. Our book-to-bill is above parity, both with and without consumer. Lead times remain stable, and we see no change in cancellation activity. Part of that $9 million was a small but relatively immaterial amount due to an accounting policy that we harmonized between LTC and ADI. But in general, we feel very good about where we are in inventory in light of the demand we see for Q2, and we expect days to decline at a normal pace over the balance of the year.

好的。謝謝你，安布里什。謝謝你的提問。因此，庫存環比增長了 2%，約 900 萬美元。這900萬美元的大部分資金都用於B2B市場，這是由於我們做出了一項戰略決策，即保持生產水平與預訂量大致相符，而預訂量的預期則取決於兩方面：一是確保我們能夠維持所需的高水平客戶服務，二是將交貨週期控制在4到6週的範圍內。就像每個人都把庫存水準視為需求狀況的指標或「煤礦裡的金絲雀」一樣，我認為我們關注的所有其他指標仍然非常樂觀。無論是否包含消費者，我們的訂單出貨率都高於平均水準。交貨週期保持穩定，取消訂單的情況也沒有改變。這 900 萬美元中有一部分金額較小，但相對而言並不重要，這是由於我們在 LTC 和 ADI 之間統一了會計政策所致。但總的來說，鑑於我們對第二季需求的預期，我們對目前的庫存狀況感到非常滿意，並預計庫存週轉天數將在今年剩餘時間內以正常速度下降。

Yes. I'll add another one, Ambrish. The internal fabs are the largest supply line for our industrial business. And what we're seeing there, of course, is the book-to-bill is positive and has been now for several quarters. And as Prashanth said, we're eager to make sure that we keep our lead times at a level where we can supply the upside demand here. So I think that's worth considering when you think about why we kept our internal fabs running at a higher clip than we would normally do for the first quarter.

是的。我再補充一個，安布里什。內部晶圓廠是我們工業業務最大的供應鏈。當然，我們看到的是，訂單出貨比為正，而且這種情況已經持續了好幾個季度。正如 Prashanth 所說，我們渴望確保我們的交貨週期保持在能夠滿足這裡不斷增長的需求的水平。所以，我認為在思考為什麼我們在第一季保持內部晶圓廠的運作速度比平常更快時，這一點值得考慮。

Our next question comes from the line of Stacy Rasgon with Bernstein Research.

我們的下一個問題來自伯恩斯坦研究公司的史黛西·拉斯貢。

Could you walk us through puts and takes on free cash flow in the quarter? I know there's a bunch of stuff going on with the tax law and everything else. The number itself was a little lower than I might have expected. And I just want to see if you can give us a walk-through with all the puts and takes there. I think it's -- there's more going on there than normal this quarter.

能否請您為我們分析一下本季自由現金流的買賣情況？我知道稅法和其他方面有很多事情正在發生。這個數字比我預想的要低一些。我想看看你能不能給我們詳細講解所有的買賣操作。我認為——這季度發生的事情比平常要多。

Yes, absolutely. So free cash flow, we have the hat trick in Q1, 3 items that were sort of buried in there. First, we make our large annual payment to the IRS, so federal taxes were paid in the first quarter. Second, we make our once every 2-year payment for the employee bonus program, and then we also make our once every 2-year payment for our interest debt. So some big outlying -- outgoing items that hit us with some lumpiness. The way to look at cash flow, as we do, is on a trailing 12-month basis, generating $1.8 billion over the last 12 months, continuously very strong expectations on cash flow. The model has not changed. We convert a high amount of the profitability to cash, and you'll see strength there for second quarter in the cash flow number.

是的，絕對的。所以自由現金流方面，我們在第一季實現了三項重大突破，這三項之前都被埋沒在裡面。首先，我們向美國國稅局繳納了大筆年度稅款，因此聯邦稅款已在第一季繳納完畢。其次，我們每兩年支付一次員工獎金計畫款項，然後我們每兩年支付一次利息債務。所以有一些大的異常情況——一些外來項目給我們帶來了一些衝擊。我們看待現金流的方式是以過去 12 個月的數據來計算，過去 12 個月產生了 18 億美元的現金流，現金流預期一直非常強勁。模型沒有改變。我們將大部分獲利轉化為現金，您將在第二季的現金流數據中看到強勁的成長動能。

Got it. For my follow-up, I had a question on the longer-term synergies around the fab closures. So you're looking at 3 to 5 years to close these factories. In the past, when you closed your own factories, it didn't take 3 to 5 years. It was more like 1 to 2 when you closed Sunnyvale or Limerick or Cambridge. Why does it take 3 to 5 years to close the Linear facilities?

知道了。我的後續問題是，關於晶圓廠關閉帶來的長期綜效。所以關閉這些工廠需要 3 到 5 年。過去，當你關閉自己的工廠時，不需要 3 到 5 年的時間。如果關閉桑尼維爾、利默里克或劍橋，那大概是 1 到 2 人。為什麼關閉Linear工廠需要3到5年？

Well, it tends to take 3 years. There's -- given the multiple recipes that we have in our foundries and the back-end operations, it does tend to take about 3 years typically, and that's what I believe will be the case with the LTC Singapore and Milpitas closures as well. Our job #1 is to make sure that we keep our service and quality levels high for our customers across the many thousands of customers and hundreds and hundreds of applications and, as I said, the myriad recipes that we've done. So it will take most likely 3. But obviously, we're trying to push as hard as we can for the efficiencies to kick in earlier. But that's the rule of thumb, 3 years.

通常需要3年時間。鑑於我們鑄造廠和後端運營中存在多種配方，通常需要大約 3 年時間，我相信 LTC 新加坡和米爾皮塔斯工廠的關閉也會是這種情況。我們的首要任務是確保為成千上萬的客戶、數百個應用程式以及我所說的無數食譜，保持高水準的服務和品質。所以很可能需要 3 天。但顯然，我們正在盡最大努力推動效率提升，使其能夠更早發揮作用。但通常情況下，三年左右。

And Stacy, maybe just a quick comment I would add is that the net result is the 2 closures, but what's going on under the covers is quite a bit of process movement among multiple facilities, internal and external. So you're seeing -- we're talking about the net output. But under the cover, it's a lot more complex than just shutting down the 2 operations.

史泰西，我可能還要補充一點，最終結果是關閉了兩家工廠，但實際上，內部和外部多個工廠之間正在進行大量的流程調整。所以你看——我們說的是淨產出。但實際上，事情遠比關閉這兩個營運部門複雜得多。

Your next question comes from the line of Toshiya Hari with Goldman Sachs.

你的下一個問題來自 Toshiya Hari 在高盛集團的職位。

I had a question on the consumer business. In the past, I think you guys talked about fiscal year '18 consumer revenues being down somewhere between 20% and 30%. I was just curious, does that range still hold? And if not, what are some of the things that are driving the potential change there?

我有一個關於消費者業務的問題。過去，我記得你們討論過 2018 財年消費者收入下降了 20% 到 30%。我只是好奇，這個範圍現在還適用嗎？如果不是，那麼有哪些因素正在推動這種情況改變？

Yes. So thank you. Well, look, our 2Q guidance would imply that consumer will be down somewhere in the region of 10% quarter-on-quarter on a 13-week basis and down about again 10% on a year-over-year basis. So our expectations remain unchanged. We believe that 2018 will be down meaningfully over '17 in terms of at least the portable consumer revenue. And the first half is now shaping up within the range of our expectations. And we're expecting weakness in the second half on an annual basis. So the number we've given you of a 20% to 30% overall decline in the business still stands. And as I said, that's driven by our portable business, our prosumer AV, the audio/video nonportable side of things, is in good shape and continues to grow for the company.

是的。所以，謝謝你。你看，我們第二季的業績指引意味著，以 13 週計算，消費者支出將較上季下降約 10%，年減約 10%。因此，我們的預期保持不變。我們認為，至少在便攜式消費品收入方面，2018 年將比 2017 年大幅下降。目前來看，上半程的進展符合我們的預期。我們預計下半年全年業績將會疲軟。因此，我們先前給出的業務整體下滑 20% 至 30% 的預測仍然成立。正如我所說，這主要得益於我們的便攜式業務、專業消費級音視頻業務以及非便攜式音頻/視頻業務，這些業務發展良好，並將繼續為公司帶來成長。

Great. And I had a follow-up for Prashanth. I guess, it's been several months since you joined ADI. I guess, the question is what are some of the things that you've learned about the company and about the industry during this time frame that you perhaps didn't fully appreciate prior to joining the company? And what are some of the changes that you hope to drive in terms of the financial at the company going forward?

偉大的。我還有一個後續問題想問 Prashanth。我猜，你加入ADI已經好幾個月了。我想問的是，在這段時間裡，你對公司和產業有哪些新的認識，是你在加入公司之前可能沒有充分意識到的？那麼，您希望在公司未來的財務上推動哪些變革呢？

Thanks. That's a very long question if I wanted to give you a thoughtful answer, but I'll give you a quick item, which I continue to reflect on. The correlation of the ADI business to the B2B markets and the stability that we have in our customer base is something that I'm continuously impressed on. This is not a business that -- given how embedded we are and how close we are to our customers and the broad spread of products that we are incorporated in, I think sometimes, investors don't fully appreciate that we will follow much more closely to a different set of markets than other perhaps semi companies that operate in the digital space, and that's something that we're going to continue to have to help the investor community appreciate as the strength of this business.

謝謝。如果我想給你一個深思熟慮的答案，那這個問題就太長了，但我只能簡單地告訴你一點，這也是我一直在思考的問題。ADI業務與B2B市場的關聯性以及我們客戶群的穩定性一直讓我印象深刻。鑑於我們與客戶的緊密聯繫以及我們產品線的廣泛性，我認為投資者有時並沒有充分意識到，我們將更密切地關注與在數位領域運營的其他半導體公司不同的市場，而這正是我們將繼續努力幫助投資者群體認識到的，也是我們業務的優勢所在。

Your next question comes from the line of Ross Seymore with Deutsche Bank.

你的下一個問題來自德意志銀行的羅斯·西摩。

This is Jeriel on behalf of Ross. Got 2 quick ones. First on OpEx, I see you guys guided OpEx down. I think we were expecting it to be down a little bit more. I understand it's basically guiding it back to the October range, but other than the 14- and 13-week quarter, what's the trajectory for OpEx going forward?

我是傑瑞爾，代表羅斯。很快就搞定了兩個。首先說說營運成本，我看到你們把營運成本控制在了較低的水平。我們原本預期它會再下降一些。我知道它基本上是引導其回到 10 月的水平，但除了 14 週和 13 週的季度之外，營運支出未來的發展軌跡是什麼？

Right. So the way to think about the OpEx is that for the -- starting in the second quarter, you'll begin to see the impacts of some of the normal items that flow in, including our merit increases, which start to come in, and the impact of the performance bonus metrics. The second quarter, you'll see is more aligned to where we were in the fourth quarter if you adjust out some of the noise of the 14th week that we had in the first quarter as well as there's some sort of seasonal slowdown of spending that happens in the first quarter. So I would guide you that OpEx in the second quarter, if we put -- we expect kind of be in that -- in the sub-30% of revenue, which we think is a great target for us as we continue to drive the conversion of the cash, so -- conversion of the profit. But nothing more notable really in the OpEx spend.

正確的。因此，看待營運支出的方式是－從第二季開始，您將開始看到一些正常項目的影響，包括我們的績效加薪（開始到帳）以及績效獎金指標的影響。你會發現，如果剔除第 14 週第 14 週的一些幹擾因素，以及第一季消費出現某種季節性放緩，那麼第二季的情況就更接近第四季了。因此，我可以向你們說明，第二季的營運支出，如果我們——我們預計會——低於收入的 30%，我們認為這對我們來說是一個很好的目標，因為我們將繼續推動現金轉化，也就是利潤轉換。但營運支出方面並沒有什麼特別值得注意的地方。

Yes. Jeriel, I'd like to add one thing there. If you look at our combined company, Linear and ADI, our guidance implies a high single-digit year-on-year growth, and the OpEx is flat over that time. That's a good result. And what that is, is we well manage our expenses and we're capturing synergies. If you look in the back half of the year, typically, I would say OpEx is up a little bit in 3Q because of merit increases and maybe flat in the fourth quarter. I think we'll start to do even better than that this year given the synergies.

是的。傑裡爾，我想補充一點。如果縱觀我們合併後的公司 Linear 和 ADI，我們的業績預期將實現高個位數的年增長，同時營運支出在此期間保持平穩。這是個好結果。這意味著我們很好地控制了支出，並且正在實現協同效應。如果觀察下半年的情況，通常來說，我會說第三季的營運支出會略有上升，因為績效薪資上漲，而第四季可能會持平。我認為，考慮到各種協同效應，我們今年的表現會比去年更好。

And as a follow-up, I just want to ask a question on auto growth. I think it's probably safe to say that your auto business probably undergrew the industry as a whole last year in 2017. But what gives you confidence that it can grow 2 to 3x SAAR? Is that a falloff or a flattening in the declines in the passive safety business? Or what gives you confidence in that regard?

作為後續問題，我想問一個關於自動增長的問題。我認為可以肯定地說，你們汽車業務在 2017 年的成長速度可能低於整個產業的平均水準。但你憑什麼相信它能達到 2 到 3 倍的 SAAR 成長？被動安全業務的下滑趨勢是放緩還是趨於平緩？或者，是什麼讓你在這方面充滿信心？

Yes, good question. So let me parse the business a bit for you. So we have roughly a $900 million automotive business today across the combination of ADI and LT. ADI is roughly 2/3 of that; LT, 1/3. The ADI portion of that business has been growing in line with the 2x to 3x SAAR target. And in 2017, that part of our business grew in the high single digits and also in the first quarter of '18. As Mike said in one of the prior answers, our automotive business is actually better than seasonal, typically, year-over-year in the first quarter. So the ADI portion is growing high single digits and the LT piece is growing in the low single digits. But we believe, given the opportunity pipe that we're seeing and the opportunity pipe that we inherited from LT, that even though the LT part of the business is growing more modestly, that over the coming couple of years, at least the power piece of that will get into the higher single-digit area at least into the model. And everywhere that -- as I mentioned in the prepared remarks, we use a rule of thumb that for every dollar of mixed signal or legacy ADI Hittite content, there's at least $1 of LT power. I will tell you as well that we're already starting to see revenue synergies on the LT side. We're winning designs for power management. And as we kind of retune the business logic on the LT side and we tune the organization and the business for profitable growth, we're already beginning to see the start of synergies there. The BMS sector, well, we've said before that was a trouble spot for ADI in 2017, the battery management area. But it has stabilized and is now in the recovery phase. So we're expecting to be able to grow the battery management part of our business in double digits this year. And as I said, that is at the beginning phases of what I think will be a strong recovery during the second quarter.

是的，問得好。讓我來為你稍微分析一下這個業務。因此，目前ADI和LT兩家公司合計擁有約9億美元的汽車業務。ADI 大約是其中的 2/3；LT 大約是其中的 1/3。該業務中的ADI部分一直按照2倍至3倍的SAAR目標成長。2017 年，我們這部分業務實現了接近兩位數的成長，2018 年第一季也實現了同樣的成長。正如 Mike 在先前的回答中所說，我們的汽車業務實際上比往年同期第一季的季節性表現要好。因此，ADI 部分的成長速度接近兩位數，而 LT 部分的成長速度接近兩位數。但我們相信，鑑於我們目前看到的機會以及我們從 LT 繼承的機遇，即使 LT 業務的增長較為溫和，但在未來幾年內，至少電力業務的增長將達到個位數以上，至少在我們的模型中是如此。正如我在準備好的發言稿中提到的那樣，我們使用一條經驗法則，即每花費一美元用於混合信號或傳統 ADI Hittite 內容，就至少花費一美元用於 LT 功率。我還要告訴大家，我們已經開始看到長期業務的收入綜效了。我們在電源管理設計方面取得了勝利。隨著我們對領導層業務邏輯進行調整，並對組織和業務進行調整以實現獲利成長，我們已經開始看到協同效應的出現。BMS 領域，我們之前說過，電池管理領域是 ADI 在 2017 年的一個問題所在。但現在情況已經穩定，正處於恢復階段。因此，我們預計今年電池管理業務部分將實現兩位數的成長。正如我所說，這只是第二季強勁復甦的初期階段。

If you take a step back, I would say 2017 was -- grew about low single digits year-on-year as a combined business. I think 2018 is shaping up to be better than that given our book of business.

如果回顧過去，我會說 2017 年，作為一個整體業務，其同比增長率約為個位數。鑑於我們目前的業務狀況，我認為 2018 年的情況會比去年好。

Our next question comes from the line of Vivek Arya with Bank of America.

我們的下一個問題來自美國銀行的 Vivek Arya。

When's your -- industrial sales have sort of been off the charts over the last couple of quarters. What's your level of visibility into the consumption of these parts in that when you look at this kind of growth, we have not seen that before -- but you have mentioned a couple of very strong drivers: aerospace, defense and industrial automation and so forth. But what are the metrics you look at to just convince yourself that this kind of growth rate is sustainable and then there isn't some kind of inventory or other risk bearing up somewhere?

你們什麼時候——過去幾季工業銷售一直居高不下。您對這些零件的消費情況了解多少？因為這種成長我們以前從未見過——但您提到了幾個非常強勁的驅動因素：航空航太、國防和工業自動化等等。但是，你透過哪些指標來判斷這種成長速度是否可持續，以及是否有庫存或其他風險呢？

Yes, it's a good question. I think, primarily, we as a company pay very careful attention to the end consumption. We look at sell-through in measuring the performance of our business, not what we ship into the channel, but what we sell through and what customers are consuming. So I would say first and foremost, that's the case. When you look at the backdrop, our market growth is very broad based, and all applications and geographies are up in double digits year-over-year. So again, you look at the PMIs, they're still in expansion phase globally. And GDP is converging across the globe across all the major geographies into an expansionary phase. So also, we pay a lot of attention to what our customers are saying. And I would tell you that our customers across the board and all the regions are pragmatically optimistic. And their belief, given the macro environment, the macro backdrop, the PMI situation and the vast deployment of high-end machinery into the Asia region in particular, that '18 is going to be another good year and that we'll see momentum continue from '17, which we are experiencing right now.

是的，這是個好問題。我認為，首先，我們公司非常關注最終消費。我們衡量業務績效時關注的是銷售轉換率，而不是我們向通路發貨了多少，而是我們賣出了多少，顧客消費了多少。所以首先我要說，情況就是這樣。從大局來看，我們的市場成長基礎非常廣泛，所有應用領域和地區都實現了兩位數的年增長。所以，再看看採購經理人指數（PMI），全球PMI仍處於擴張階段。全球各大地區的GDP正趨於同步成長，進入擴張階段。所以，我們也十分重視客戶的回饋。我可以告訴大家，我們所有地區、所有客戶都持務實樂觀的態度。鑑於宏觀環境、宏觀背景、採購經理人指數 (PMI) 情況以及高端機械設備在亞洲地區的大規模部署，他們相信 2018 年將是另一個好年頭，我們將看到 2017 年的勢頭延續下去，而我們現在正經歷著這種勢頭。

Vivek, thanks for the question. I will just add, book-to-bill is looking very good. Lead times are stable and short, and we also are very conscious of what inventory in the channel is, and it does not give us concern.

維韋克，謝謝你的提問。我還要補充一點，訂單結算情況看起來非常好。交貨週期穩定且短，我們也非常關注通路庫存情況，因此並不擔心。

Our next question is from Harsh Kumar with Piper Jaffray.

下一個問題來自 Harsh Kumar 和 Piper Jaffray。

Vincent, I had a quick question for you, sort of piggybacking on to what the previous question was. Doing extremely well in industrial, could you characterize the end markets that you plan? Do you think it's a function of that? Or do you think it's some other things that you guys as a company are doing to garner over-the-top growth?

文森特，我有個問題想問你，算是接在上一個問題。你們在工業領域做得非常出色，能否介紹一下你們計劃開拓的終端市場？你認為這與此有關嗎？或者你認為這是你們公司為了獲得超高速成長而採取的其他措施？

Yes, it's a good question. I think we as a company retooled our strategy several years ago and primarily decided that we were focusing ADI's investments in the B2B space and pointing our sales force at the B2B area. Industrial is one of the first calls on our R&D. And the crop of products, I think, we have now is the strongest that it's ever been. So we are getting more content gain across all our industrial customers, both big and small. And I will tell you as well that in the areas of aerospace and defense and instrumentation, the combination with Hittite has really -- that's catalyzed content gain, and I think we're able to solve our customers' problems at a level that others can't in these areas. We're able to take a complete system, be it nanowatts to kilowatts, sensor to cloud, microwave to bits. So I think a large part is the sheer arsenal of technologies and products that we've got and we bring to bear, the focus that we've got as a company and how we're serving our customers' needs, being able to build more complete solutions for them. And we do that globally. And as I mentioned earlier, the combination of the LT sales and applications force with ADI just strengthens our position and enables us to cover evermore customers. So I think it's a case of converging, innovation engine working well. Our customer engagements are stronger than they've ever been. And we've been focused and making sure that we are able to gain share and build competitive advantage now for several years in the industrial area.

是的，這是個好問題。我認為我們公司幾年前就調整了策略，主要決定將 ADI 的投資重點放在 B2B 領域，並將我們的銷售團隊重點放在 B2B 領域。工業領域是我們研發工作的首要關注點之一。我認為，我們現在擁有的產品陣容是史上最強大的。因此，我們所有工業客戶，無論規模大小，都獲得了更多的內容效益。我還要告訴你們，在航空航太、國防和儀器儀表領域，與 Hittite 的結合確實——這加速了內容的成長，我認為我們能夠在這些領域以其他人無法企及的水平解決客戶的問題。我們能夠處理整個系統，無論是納瓦級到千瓦級，感測器到雲端，微波到位元流。所以我認為很大一部分原因是我們擁有並運用了大量的技術和產品，我們公司專注於滿足客戶的需求，並能夠為他們建立更完整的解決方案。我們在全球範圍內都這樣做。正如我之前提到的，LT 銷售和應用團隊與 ADI 的結合只會加強我們的地位，並使我們能夠覆蓋更多的客戶。所以我認為這是一個融合的典型案例，創新引擎運作良好。我們與客戶的互動比以往任何時候都更加緊密。多年來，我們一直專注於確保能夠在工業領域獲得市場份額並建立競爭優勢。

Thanks for the question, Harsh. I would -- maybe I'll just wrap up in saying we have a very good process internally on selecting where we choose to invest and where we choose to innovate. And as Vince mentioned in his prepared remarks, you see that paying off by placing the right bets on where we see the secular trends growing at.

謝謝你的提問，Harsh。我——或許我最後只想說，我們在選擇投資方向和創新方向方面，內部有一套非常好的流程。正如文斯在事先準備好的演講稿中提到的那樣，只要我們對長期發展趨勢的走向做出正確的判斷，就能獲得回報。

And our final question comes from Harlan Sur with JPMorgan.

最後一個問題來自摩根大通的哈蘭‧蘇爾。

Just wanted to kind of take a step back here and look at the underlying demand trends for the business and just get a sense on how broad based it was from a geographical perspective. Macroeconomic demand trends remain relatively healthy. Maybe if you guys could just talk about the year-over-year growth trends in the different geographies.

我只是想退後一步，看看這個行業的潛在需求趨勢，並從地理角度了解它的基礎有多廣泛。宏觀經濟需求趨勢依然相對健康。或許你們可以談談不同地區每年的成長趨勢。

Mike, do you want to take that?

麥克，你想拿嗎？

Yes, sure. First, I'll caution you. I mean, looking at the geography trends for us is not as useful as we base geography revenue on design-in activity. But in general, our strength is broad based. It's up double digits in every region in industrial. Our wireless business did good across the globe as well. I mean, this is definitely, I would call, a global synchronized growth scenario that we are benefiting from and really we've doing better than, I would say, given what Vince has talked about, given our share gains, our portfolio and where we're selecting to play. Do you have a follow-up?

當然可以。首先，我要提醒你。我的意思是，對我們來說，觀察地理趨勢並不像我們根據設計活動來計算地理收入那麼有用。但總的來說，我們的優勢在於廣泛的領域。工業區各地區的增幅均達到兩位數。我們的無線業務在全球也表現良好。我的意思是，這絕對是一個全球同步增長的局面，我們正在從中受益，而且就文斯所說的、我們的市場份額增長、我們的投資組合以及我們選擇的投資領域而言，我們的表現確實比預期要好。您還有後續問題嗎？

Yes. On the mil/aero side, the move to phased-array radar-based systems for both civil and defense-related applications, your guys' dollar content per engagement goes up there, I think, pretty significantly. And I think that there's only one other competitor in that space. Have some of these programs started to fire? Or is it more of a 2019 driver? And then if you can just remind us of the dollar content step-up relative to prior-generation architectures.

是的。在軍事/航空領域，無論是民用或國防相關應用，隨著相控陣雷達系統的普及，我認為你們每次交戰的成本都會大幅上升。我認為在這個領域只有另一家競爭對手。這些專案裡有些已經開始啟動了嗎？或者它更像是 2019 年的賽車？然後，如果您能提醒我們相對於上一代架構的美元內容提升幅度就更好了。

Yes. Well, look, there's many, many different subapplications within the aerospace and defense area. And I would say the recent history and the prognosis for those sectors remain strong in terms of the digitalization, fleet upgrades, for example, in the aerospace area. And we've highlighted in past conversations the area of these phased-array antenna systems, digitalizing the old analog radar systems used in civil and commercial aircraft systems. The content gain there goes from -- we believe, the SAM goes from probably $100,000 in the past to probably $2 million in the future, somewhere in between, depending on the types of architectures and deployments. So the upside demand we're seeing for these phased-array systems and the opportunity is very, very compelling.

是的。你看，航空航太和國防領域內有很多很多不同的子應用。我認為，就數位化、機隊升級等而言，例如航空航太領域，這些產業的近期發展歷史和前景依然強勁。我們在過去的對話中重點討論了這些相控陣天線系統，以及將民用和商用飛機系統中使用的舊模擬雷達系統數位化。我們認為，SAM 的內容收益將從過去的 10 萬美元增長到未來的 200 萬美元，具體數值介於兩者之間，具體取決於架構和部署的類型。因此，我們看到市場對這些相控陣系統的需求呈現上升趨勢，市場機會非常非常誘人。

Okay. Thank you all for joining us this quarter. As always, Mike is available for those of you who are unable to get through on today's Q&A session. Jennifer, we can wrap up the call.

好的。感謝各位本季參與我們的工作。像往常一樣，如果您今天無法聯繫到Mike進行問答環節，他/她會隨時為您提供協助。珍妮弗，我們可以結束通話了。

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。