亞德諾半導體 (ADI) 2019 Q1 法說會逐字稿

Good morning, and welcome to the Analog Devices First Quarter Fiscal Year 2019 Earnings Conference Call, which is being audio webcast via telephone and over the web.

早安，歡迎參加 Analog Devices 2019 財年第一季財報電話會議，該電話會議正在透過電話和網路進行音訊網路直播。

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

現在我想介紹一下今天電話會議的主持人，投資者關係總監 Michael Lucarelli 先生。先生，地板是你的了。

Thank you, Cheryl, and good morning, everybody. Thanks for joining our First Quarter Fiscal 2019 Conference Call. With me on the call today are ADI's CEO, Vincent Roche; and ADI's CFO, Prashanth Mahendra-Rajah. For anyone who missed the release, you can find it and relating financial schedules at investor.analog.com.

謝謝你，謝麗爾，大家早安。感謝您參加我們的 2019 財年第一季電話會議。今天與我一起參加電話會議的是 ADI 執行長 Vincent Roche；以及 ADI 財務長 Prashanth Mahendra-Rajah。對於那些錯過了該發布的人，您可以在 Investor.analog.com 上找到它以及相關的財務時間表。

Now on to the disclosures. The information we're about to discuss, including our objectives and outlook, include 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 in 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. Our comments today about ADI's first quarter fiscal 2019 financial results and short-term outlook will also include non-GAAP financial measures, which include -- excludes special items. When comparing our results to historical performance, special items are also excluded from these prior quarter and year-over-year results. 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.

現在開始披露。我們將要討論的訊息，包括我們的目標和前景，包括前瞻性陳述。由於各種因素，包括我們的收益報告和最近的 10 季中討論的因素，實際結果可能與這些前瞻性陳述有重大差異。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。我們沒有義務根據新資訊或未來事件更新這些前瞻性聲明。我們今天對 ADI 2019 財年第一季財務業績和短期前景的評論還將包括非 GAAP 財務指標，其中包括—不包括特殊項目。將我們的結果與歷史業績進行比較時，上一季和同比結果中也排除了特殊項目。這些非公認會計準則衡量指標與其最直接可比較的公認會計準則衡量指標的對帳以及有關我們非公認會計準則衡量指標的其他資訊均包含在今天的收益發布中。

As a reminder, the first quarter of 2018 was a 14-week quarter. In addition, this is the first quarter of our adoption of ASC 606 or sell-in accounting. We have restated our historical financial statements to conform to this standard, and posted a 2-year quarterly end-market look-back for revenue on our investor site. All comments during today's call on revenue growth and our commentary during Q&A will exclude this extra week and be on a sell-in basis, unless otherwise stated.

提醒一下，2018 年第一季是一個為期 14 週的季度。此外，這是我們採用 ASC 606 或銷售會計的第一季。我們重述了我們的歷史財務報表以符合此標準，並在我們的投資者網站上發布了 2 年季度終端市場收入回顧。除非另有說明，今天電話會議期間有關收入增長的所有評論以及我們在問答期間的評論都將排除這額外的一周，並以賣出為基礎。

In addition, as we move to sell-in accounting and further refine LTC's product mapping in the channel, we have adjusted approximately $80 million of annual revenue from communications to consumer. The new mapping does not impact industrial or automotive revenue.

此外，隨著我們轉向銷售會計並進一步完善 LTC 在通路中的產品映射，我們調整了來自通信到消費者的約 8000 萬美元的年收入。新的地圖不會影響工業或汽車收入。

Okay. With that, I'll turn over to ADI's CEO, Vincent Roche. Vince?

好的。接下來，我將向 ADI 執行長 Vincent Roche 求助。文斯？

Thank you, Mike, and a very good morning to everybody. The first quarter of fiscal 2019 was another very successful quarter for ADI. In what is a challenging macroeconomic environment, we're executing soundly and delivering strong results. Revenue of $1.54 billion in the first quarter came in at the high-end of our guidance, led by our strong year-over-year growth in our B2B markets. This growth was driven predominantly by continued strength in our communications market related to ongoing 4G upgrades and initial 5G deployments. Adjusted operating margins of over 41% were above the midpoint of guidance, as we balanced our strategic investments with prudent discretionary spend. All told, adjusted EPS was $1.33, also at the high-end of guidance.

謝謝你，麥克，祝大家早安。2019 財年第一季是 ADI 又一個非常成功的季度。在充滿挑戰的宏觀經濟環境中，我們執行良好並且取得了強勁的業績。在 B2B 市場同比強勁成長的帶動下，第一季的營收達到了 15.4 億美元，達到了我們指導的上限。這一成長主要是由與持續的 4G 升級和初始 5G 部署相關的通訊市場的持續強勁推動的。由於我們平衡了策略性投資與審慎的可自由支配支出，調整後營業利潤率超過 41%，高於指導中位數。總而言之，調整後每股收益為 1.33 美元，也處於指導值的高端。

Over the past 12 months, we have generated over $2.1 billion in free cash flow or 35% of revenue, which places ADI in the top 5% of the S&P 500. And over that same time period, we've returned more than 100% of free cash flow to our shareholders after debt repayments.

在過去 12 個月中，我們產生了超過 21 億美元的自由現金流，佔收入的 35%，這使 ADI 躋身標準普爾 500 強前 5% 之列。同期，我們在償還債務後將超過 100% 的自由現金流返還給股東。

Now while macro uncertainties continue to exist, our strong execution and results enable us to continue to invest in extending over franchise in strategic areas where we see attractive opportunities for future growth. To that end, we're investing record levels of R&D to push the boundaries of innovation and expand the breadth and depth of our franchise. In addition, we've increased our investments in our go-to-market activities to further broaden and deepen our customer reach and our engagements.

現在，儘管宏觀不確定性仍然存在，但我們強大的執行力和績效使我們能夠繼續投資於策略領域的特許經營權擴展，我們認為這些領域具有未來成長的誘人機會。為此，我們正在投資創紀錄水平的研發，以突破創新界限並擴大我們特許經營的廣度和深度。此外，我們還增加了對市場推廣活動的投資，以進一步擴大和深化我們的客戶覆蓋範圍和參與度。

The strength and resiliency of our business model allows us to innovate regardless of business conditions. This ability is imperative given the long life cycles in our markets, where our average product life span is a decade or indeed more. And while some competitors pull back and lose momentum in uncertain times, we plan to continuously invest to build upon our virtuous cycle of innovation-led growth.

我們業務模式的實力和彈性使我們能夠在任何業務條件下進行創新。鑑於我們市場的生命週期較長，這種能力是必不可少的，我們的平均產品壽命為十年甚至更長。儘管一些競爭對手在不確定的時期撤退並失去動力，但我們計劃繼續投資，以建立創新主導型成長的良性循環。

In my 30-plus year career with ADI, I've never been more confident or excited about our prospects than I am today. The third wave of information and communications technology is creating an inflection in the analog industry. And we've built a product portfolio aimed at favorable macro trends that I believe will provide tailwinds for years to come.

在 ADI 的 30 多年職業生涯中，我從未像今天這樣對我們的前景充滿信心或興奮。資訊和通訊技術的第三波正在為模擬產業帶來變革。我們已經針對有利的宏觀趨勢建立了產品組合，我相信這將在未來幾年提供順風。

Now I'll provide you with some examples of what we're seeing in our B2B market specifically.

現在我將向您提供一些我們在 B2B 市場中所看到的具體範例。

Today, industrial customers are balancing CapEx deployments with tariff uncertainty. However, our customers remain focused on digitizing the factory and securing the efficiency and productivity that will fuel their future growth. The move to the digital factory requires more high-performance signal processing and power management, additional sensors and more robust connectivity. These are all areas where ADI excels.

如今，工業客戶正在平衡資本支出部署與關稅不確定性。然而，我們的客戶仍然專注於工廠數位化並確保效率和生產力，這將推動他們未來的成長。向數位工廠的轉變需要更高性能的訊號處理和電源管理、額外的感測器和更強大的連接。這些都是 ADI 擅長的領域。

On the automotive front, vehicle unit growth has stalled recently. But the real growth drivers, electric and autonomous vehicles, are in the nascent stages. Electric vehicles represent only 1% of worldwide sales, but industry reports suggest this will climb to more than 15% over the next decade or so. The powertrain in an electric vehicle opens the opportunity for us to address up to 3x the content compared to combustion engines.

在汽車方面，汽車銷售成長最近陷入停滯。但真正的成長動力——電動車和自動駕駛汽車——正處於萌芽階段。電動車僅佔全球銷量的 1%，但產業報告表明，這一比例將在未來十年左右攀升至 15% 以上。與內燃機相比，電動車的動力系統為我們提供了處理多達 3 倍內容的機會。

Today, we enjoy the luxuries of Level 2 autonomous vehicles, but the cars of the future will require higher precision and up to 4x more sensors per car to provide the necessary level of safety for a fully autonomous vehicle. And it's not just about radar or cameras. We expect that these cars of the future will require LIDARs and IMUs as well. ADI is uniquely positioned to provide the necessary building blocks across all these sensing modalities as well as the analog and mixed single processing, RF and microwave connectivity, algorithms and power management to make the autonomous vision a reality.

今天，我們享受 2 級自動駕駛汽車的奢華，但未來的汽車將需要更高的精度和每輛車最多 4 倍的感測器，才能為全自動駕駛汽車提供必要的安全等級。這不僅僅是雷達或攝影機的問題。我們預計未來的這些汽車也將需要光達和 IMU。ADI 具有獨特的優勢，可以為所有這些感測模式以及類比和混合單一處理、射頻和微波連接、演算法和電源管理提供必要的建構模組，使自主願景成為現實。

In communications, carriers are looking to upgrade both the wireless networks and the optical backbone to deal with the ever increasing deluge of data being created and transmitted. This additional data intensifies the need for spectral, space, thermal and cost efficiency. And with our comprehensive portfolio of software-defined mixed signal, RF, microwave and power management technologies, we're creating very compelling solutions for our customers as they upgrade 4G networks and begin the introduction of 5G systems.

在通訊領域，營運商正在尋求升級無線網路和光纖主幹網，以應對不斷增加的大量資料的創建和傳輸。這些額外的數據加劇了對光譜、空間、熱和成本效率的需求。憑藉我們全面的軟體定義混合訊號、射頻、微波和電源管理技術組合，我們正在為升級 4G 網路並開始引入 5G 系統的客戶創建非常引人注目的解決方案。

An important bridge between 4G and 5G is the introduction of massive MIMO radio systems. And ADI's software-defined transceiver technology is at their core. These upgrades to massive MIMO systems are just beginning today. And the increase in radio count expands our content opportunity by up to 4x when compared to traditional 4G systems.

4G 和 5G 之間的一座重要橋樑是大規模 MIMO 無線電系統的引進。ADI 的軟體定義收發器技術是其核心。這些大規模 MIMO 系統的升級今天才剛開始。與傳統 4G 系統相比，無線電數量的增加將我們的內容機會擴大了多達 4 倍。

This phase will be followed by network expansions to higher frequencies to increase bandwidth as well as the upgrade of the optical backhaul and virtualization of the network to more efficiently move the data. This next wave will once again create the opportunity for ADI to address additional content, both in the radio as well as in the optical network.

此階段之後將是將網路擴展到更高的頻率以增加頻寬，以及升級光纖回程和網路虛擬化以更有效地移動資料。下一波浪潮將再次為 ADI 創造機會來解決無線電和光纖網路中的附加內容。

We see these upgrades towards 5G as a multi-year cycle that's just beginning, and are expected to provide tailwinds to our business well into the future.

我們將這些向 5G 的升級視為一個剛開始的多年周期，預計將為我們的未來業務提供動力。

And lastly, in health care, the dual impact of an aging global population and the pressing need to more economically and effectively manage wellness is driving continued investments in our products by our customers. Here we're complementing our high-end component franchise with highly integrated subsystems, thereby extending our addressable market to capture new levels of value. For example, in digital x-ray, we're creating highly integrated photons to bit subsystems that enable our customers to deliver high fidelity images at lower radiation dosages. Separately, ADI's deep expertise in vital signs monitoring and ultra-low power electronics enable clinical-grade performance under battery power, allowing us to deliver high accuracy, portable monitoring at virtually any point of use.

最後，在醫療保健領域，全球人口老化的雙重影響以及更經濟、更有效地管理健康的迫切需求正在推動客戶對我們產品的持續投資。在這裡，我們透過高度整合的子系統來補充我們的高端組件專營權，從而擴展我們的目標市場，以獲取新的價值水平。例如，在數位 X 光領域，我們正在創建高度整合的光子比特子系統，使我們的客戶能夠以較低的輻射劑量提供高保真度影像。另外，ADI 在生命徵象監測和超低功耗電子產品方面的深厚專業知識可在電池供電下實現臨床級性能，使我們能夠在幾乎任何使用點提供高精度、便攜式監測。

Now in closing, as the saying goes, a rising tide lifts all ships. The true test of a company's strategy, execution and value is its performance during a low tide. Now we've chosen a strategy that focuses on innovation, diversity across technologies, markets and applications and continuous improvement across every aspect of our performance. And the results speak for themselves. We're confident that our ethos and heritage of innovation, leadership in high-performance analog, deep relationships with our customers and alignment to favorable macro trends positions us to create -- to continue to outperform, capture more value, expand our addressable market and deliver strong results for our shareholders.

最後，俗話說，水漲船高。真正考驗一個公司的策略、執行力和價值的是它在低潮時期的表現。現在，我們選擇了一項策略，重點關注創新、技術、市場和應用的多樣性，以及我們績效各個方面的持續改進。結果不言而喻。我們相信，我們的創新精神和傳統、高效能模擬領域的領導地位、與客戶的深厚關係以及符合有利的宏觀趨勢，使我們能夠創造——繼續超越，獲取更多價值，擴大我們的目標市場，並為我們的股東帶來強勁的業績。

And so with that, I will hand it over to Prashanth, who will bring you through more detail.

因此，我將把它交給 Prashanth，他將為您帶來更多細節。

Thank you, Vince. Good morning, everyone, and let me add my welcome to our first quarter earnings call.

謝謝你，文斯。大家早上好，請容許我對我們第一季財報電話會議表示歡迎。

My comments today with the exception of revenue and non-op expenses will be on an adjusted basis, which excludes special items outlined in today's press release. As a reminder, the first quarter of 2018 was a 14-week quarter, and we have now adopted ASC 606 or sell-in accounting. We have restated our historical financial statements to conform. And as Mike mentioned, we've also posted a 2-year quarterly end-market look-back for revenue on a sell-in basis.

我今天的評論，除收入和非營運支出外，都將在調整後的基礎上進行，其中不包括今天新聞稿中概述的特殊項目。提醒一下，2018 年第一季是一個為期 14 週的季度，我們現在採用了 ASC 606 或賣出會計。我們重述了我們的歷史財務報表以保持一致。正如麥克所提到的，我們也發布了基於銷售的兩年季度終端市場收入回顧。

To normalize our growth rates and give you a like-for-like comparison, my prepared remarks and our Q&A commentary will exclude this extra week and will be on a sell-in basis, unless otherwise stated.

為了使我們的成長率正常化並為您提供同類比較，除非另有說明，我準備好的評論和我們的問答評論將排除這額外的一周，並將以賣出為基礎。

Now onto the quarter. In the face of geopolitical uncertainty, we are pleased to report strong first quarter results with revenue, operating margin and EPS all coming in above the midpoint of our guidance. Additionally, we are delighted to have increased our dividend by almost 13%, the largest increase since 2013. And we also raised our dividend growth target to 7% to 15% annually. This reflects our strong financial results as well as our optimism regarding ADI's future.

現在進入季度。面對地緣政治的不確定性，我們很高興地報告強勁的第一季業績，營收、營業利潤率和每股盈餘都高於我們指導的中點。此外，我們很高興將股息增加了近 13%，這是自 2013 年以來的最大增幅。我們也將股息成長目標提高至每年 7% 至 15%。這反映了我們強勁的財務表現以及我們對 ADI 未來的樂觀態度。

Before diving into the income statement, let me first cover the end markets. Our first quarter B2B revenue increased 10% year-over-year, led by exceptional growth in the communication market, driven by ongoing momentum in 4G and the initial 5G deployments. The industrial market represented 47% of sales in the quarter and revenue was roughly flat compared to the year-ago quarter. Within this highly diversified business, revenue growth in health care, electronic test and measurement, aerospace and defense were balanced by weaker demand in factory automation and memory test.

在深入討論損益表之前，讓我先介紹一下終端市場。我們第一季的 B2B 營收年增 10%，這得益於 4G 持續成長動能和初始 5G 部署的推動，通訊市場的異常成長。工業市場佔本季銷售額的 47%，營收與去年同期基本持平。在這項高度多元化的業務中，醫療保健、電子測試和測量、航空航太和國防領域的收入成長被工廠自動化和記憶體測試需求疲軟所抵消。

The comms market represented 22% of sales during the quarter and experienced very strong double-digit year-over-year growth, led by strength in wireless. This growth exceeded our expectations and illustrates the strong momentum ADI is experiencing in traditional 4G systems and in the early deployments of 5G massive MIMO. We see 5G as a multi-year upgrade cycle that is expected to deliver continued growth over the coming years.

通訊市場佔本季銷售額的 22%，在無線業務的帶動下，實現了非常強勁的兩位數同比增長。這一成長超出了我們的預期，說明了 ADI 在傳統 4G 系統和 5G 大規模 MIMO 早期部署中所經歷的強勁勢頭。我們將 5G 視為一個多年的升級週期，預計在未來幾年將持續成長。

Our auto business represented 17% of sales in the quarter, and based on sell-through revenue, was essentially flat compared to the year-ago quarter. Overall vehicle unit weakness was offset by double-digit growth in BMS, growth in power management as we bring new products to market and extend our customer reach and ramping sales of A2B. The 6% year-over-year reported growth from our end-market breakout is primarily due to sell-in accounting as we moved some customers from direct to distribution during the quarter.

我們的汽車業務佔本季銷售額的 17%，根據銷售收入計算，與去年同期相比基本持平。隨著我們將新產品推向市場、擴大客戶覆蓋範圍以及 A2B 銷售的增加，BMS 的兩位數成長、電源管理的成長抵消了整體車輛部門的疲軟。我們的終端市場突破帶來的 6% 的同比增長主要歸功於銷售會計，因為我們在本季度將一些客戶從直接轉為分銷。

And lastly, our consumer business represented 14% of sales in the first quarter. As expected, revenues declined year-over-year. However, portables declined less than expected.

最後，我們的消費者業務佔第一季銷售額的 14%。正如預期，收入年減。然而，便攜式設備的下降幅度小於預期。

Now on to the P&L. Revenue for the quarter was at the high-end of our guidance at approximately $1.54 billion, up 6% year-over-year. Gross margin came in at 70.3% and lower year-over-year due to end-market mix and lower utilization rates. OpEx in the quarter was $448 million, down slightly sequentially and below the midpoint of guidance, as we balanced our strategic investments with prudent discretionary spend. This translated to an operating margin of 41.2%, which was at the high-end of our guided range. Non-op expenses in the first quarter were $56 million, unchanged from 4Q, but lower than a year ago, due to our debt reduction of $1.2 billion over the past year.

現在來看損益表。本季營收約 15.4 億美元，處於我們指引的上限，年增 6%。由於終端市場組合和利用率較低，毛利率為 70.3%，較去年同期下降。本季的營運支出為 4.48 億美元，比上一季略有下降，低於指導中點，因為我們平衡了戰略投資和謹慎的可自由支配支出。這意味著營業利益率為 41.2%，處於我們指引範圍的高端。第一季的非營運支出為 5,600 萬美元，與第四季度持平，但低於去年同期，這是由於我們在過去一年中減少了 12 億美元的債務。

Our tax rate for the quarter was just above 14% and at the lower end of outlook of 14% to 16%. All told, adjusted diluted earnings per share from the first quarter came in above the midpoint of guidance at $1.33.

我們本季的稅率略高於 14%，處於預期下限 14% 至 16%。總而言之，第一季調整後攤薄每股收益高於指引值中點 1.33 美元。

Now moving on to the balance sheet. Inventory dollars increased slightly sequentially, while days were flat at 117 compared to fourth quarter. As a reminder, in the coming quarters, we will begin to build bridge inventory ahead of the closure of our front-end and back-end facilities that we expect to deliver another $100 million of cost synergies. So we plan to modestly increase our inventory days temporarily until these closures are complete.

現在轉向資產負債表。庫存美元環比略有增加，而天數與第四季持平，為 117 天。提醒一下，在接下來的幾個季度中，我們將在關閉前端和後端設施之前開始建立橋樑庫存，我們預計將再帶來 1 億美元的成本協同效應。因此，我們計劃暫時適度增加庫存天數，直到這些關閉完成。

Distribution inventory days were down, both sequentially and year-over-year and remain in our target range. CapEx in the first quarter was $91 million or 6% of sales. For the full year, we anticipate CapEx may run modestly higher than our 4% model due to the co-location of our product and business development teams and additional capacity to support future linear growth. This would be a temporary deviation from our long-term model.

分銷庫存天數環比和同比均有所下降，但仍處於我們的目標範圍內。第一季的資本支出為 9,100 萬美元，佔銷售額的 6%。由於我們的產品和業務開發團隊位於同一地點，以及支援未來線性成長的額外能力，我們預計全年資本支出可能會略高於我們的 4% 模型。這將是與我們的長期模型的暫時偏差。

Free cash flow was $2.1 billion on a trailing 12-month basis. Over the past 12 months, we have returned 100% of our free cash flow to shareholders through dividends and buybacks after debt repayments.

過去 12 個月的自由現金流為 21 億美元。在過去的12個月裡，我們透過股利和償還債務後的回購，將100%的自由現金流返還給股東。

In the first quarter, we repaid $100 million of debt, paid $178 million in dividends and repurchased $227 million of our stock or roughly 2.5 million shares.

第一季度，我們償還了 1 億美元的債務，支付了 1.78 億美元的股息，並回購了 2.27 億美元的股票，約 250 萬股。

Now on to guidance, which again with the exception of revenue and non-op expenses is also on an adjusted basis, excluding items outlined in today's release. As a reminder, our guidance is based on sell-in or POA accounting. For context, during 2018, the change in channel inventory for the year was minimal, as channel inventory increased in the first half and was reduced in the second half of the year. On average, over the past 3 years, channel inventory impacts annual revenue by about 1%, while quarterly variances could be and have been larger.

現在來看指導，除了收入和非營運支出之外，該指導也是經過調整的，不包括今天發布的內容中概述的項目。提醒一下，我們的指導是基於賣出或 POA 會計。就背景而言，2018年全年通路庫存變化很小，上半年通路庫存增加，下半年通路庫存減少。平均而言，在過去 3 年中，通路庫存對年收入的影響約為 1%，而季度差異可能而且已經更大。

Second quarter revenue is expected to be $1.5 billion, plus or minus $50 million. At the midpoint, we expect our B2B markets of industrial, automotive and communications in the aggregate to increase slightly year-over-year, led by the communications market. At the midpoint of guidance, we expect second quarter operating margin to be up slightly sequentially at 41.3%.

第二季營收預計為 15 億美元，上下浮動 5,000 萬美元。中期來看，我們預計工業、汽車和通訊 B2B 市場整體將在通訊市場的帶動下同比略有增長。在指引的中點，我們預期第二季營業利潤率將比上一季小幅上升至 41.3%。

Non-op expenses are expected to be basically flat sequentially, and we are planning for our tax rate to be towards the lower end of our previously guided range of 14% to 16%. Based on these inputs, diluted EPS, excluding special items, is expected to be $1.30, plus or minus $0.07. All in, it was a strong quarter to kick off fiscal '19. And while we are mindful of the economic uncertainty around us, I will echo Vince's optimism and say that we are extremely confident in the long-term growth opportunities for ADI.

非營運費用預計將基本持平，我們計劃將稅率降至先前指導範圍 14% 至 16% 的下限。根據這些投入，不包括特殊項目的攤薄後每股收益預計為 1.30 美元，上下浮動 0.07 美元。總而言之，這是 19 財年的一個強勁季度。雖然我們注意到周圍的經濟不確定性，但我會同意文斯的樂觀態度，並表示我們對 ADI 的長期成長機會充滿信心。

And with that, I'll turn over to Mike to start our Q&A.

接下來，我將轉向麥克開始我們的問答。

Thanks, Prashanth. Okay. Before we move to Q&A, one last reminder from IR. Our growth commentary will be on a normalized 13-week basis and on sell-in, unless we otherwise state it. Now let's get to the Q&A. (Operator Instructions) Operator, can we have our first question, please?

謝謝，普拉珊特。好的。在我們開始問答之前，IR 最後提醒一下。除非我們另有說明，否則我們的成長評論將以標準化的 13 週為基礎並以賣出為基礎。現在讓我們進入問答環節。（接線生指示）接線員，我們可以問第一個問題嗎？

(Operator Instructions) And our first question comes from Ambrish Srivastava from BMO.

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

I just wanted to put your guide with respect to what the peers have reported and guided to. Is it fair to assume that it's really, the sell-in accounting change is one of the bigger factors in your Q-over-Q guide being different than your peers like [Dixon] and Maxim.

我只是想根據同行報告和指導的內容來提供您的指南。可以公平地假設這是真的嗎？賣出會計的變化是你的 Q-over-Q 指南與 [Dixon] 和 Maxim 等同行不同的更大因素之一。

No, Ambrish, I'm not sure why you'd conclude that. Our guide -- we're not -- as I mentioned, we're not guiding point-of-sale anymore. We're on a sell-in basis. But the guide is at the $1,541 million midpoint of growth -- excuse me, at the $1,500 million midpoint. The guide should be on a year-over-year basis. If you were to take an assumption on flat inventory channel, you would still see a pretty strong sequential or year-over-year growth number there.

不，安布里什，我不確定你為什麼會得出這樣的結論。我們的指南——我們不再——正如我所提到的，我們不再指導銷售點。我們以銷售為基礎。但該指南位於 15.41 億美元的成長中點——對不起，是 15 億美元的中點。該指南應以逐年為基礎。如果您假設庫存渠道平坦，您仍然會看到相當強勁的連續或同比增長數字。

Ambrish, just some context there. As Prashanth said in his prepared remarks, we built inventory in the first half of the year and -- in '18 and this year, we're not planning to build as much. So that would actually be counter to what you said.

安布里什，只是一些背景資訊。正如 Prashanth 在他準備好的演講中所說，我們在今年上半年建立了庫存，而在 18 年和今年，我們不打算建立那麼多庫存。所以這實際上與你所說的相反。

Ambrish, if you take our outlook for the next quarter, 2Q, basically, our days in the channel are flat. So it's certainly not an inventory build or sell-in issue. We run the company on a sell-through basis. So I want to make that clear.

安布里什（Ambrish），如果你對下個季度（第二季）的前景進行展望，基本上，我們在通道中的日子是平淡的。因此，這肯定不是庫存增加或銷售問題。我們以直銷為基礎經營公司。所以我想澄清這一點。

Do you have a follow-up, Ambrish?

安布里什，你有後續嗎？

I did. I just wanted to make sure I got that right. A bit longer-term, Vince, on the 5G versus 4G. Can you just help us understand what are the different dynamics architecture wise? And also the content gains that you expect? I know it's multi-flavor rollout, multi-year rollout, but how should we think about your positioning versus what it was in 4G?

我做到了。我只是想確保我做對了。Vince，從更長遠的角度來說，5G 與 4G 的比較。您能幫助我們了解什麼是不同的動態架構嗎？還有您期望的內容效益嗎？我知道這是多風格的推出、多年的推出，但我們應該如何考慮您的定位與 4G 的定位？

Yes. So the 4G build-outs are continuing. I think that will be the story for the next couple of years in terms of revenue contribution to ADI. But of course, 4G is being upgraded. We're adding massive MIMO, for example, to direct the energy and improve spectral efficiency. So I think we have a very high share at the present time in 4G and in the initial stages of 5G. And what we're seeing right now is, as I said, the 4G phase continues. I think there are multiple years left where 4G will be the primary platform. But we're in the initial stages of 5G deployments. But really 5G has yet to materialize.

是的。因此，4G 建設仍在繼續。我認為這將是未來幾年對 ADI 收入貢獻的故事。但當然，4G正在升級。例如，我們正在添加大規模 MIMO，以引導能量並提高頻譜效率。所以我認為我們目前在4G和5G的初始階段擁有非常高的份額。正如我所說，我們現在看到的是 4G 階段仍在繼續。我認為 4G 將在未來幾年內成為主要平台。但我們正處於 5G 部署的初始階段。但真正的 5G 尚未實現。

When it comes to looking at the content, I would say, these new generations of 4G create 4x more content value for ADI. And of course, when we move to 5G with the higher-frequency systems, the microwave systems and the densification of these massive MIMO systems, there is another bump that we expect to get in content there. So -- and that's, by the way, before we add in the power management portfolio as well. So as I've said before, for every $1 of analog content, of mixed-signal content, there's at least $1 of power. And I'm pleased to say that we are at the early stages of attaching our LT power management portfolio to our 4G and 5G story as well.

當談到內容時，我想說，這些新一代 4G 為 ADI 創造了 4 倍以上的內容價值。當然，當我們轉向 5G 並使用更高頻率的系統、微波系統和這些大規模 MIMO 系統的緻密化時，我們預計內容中還會出現另一個障礙。順便說一下，這也是在我們添加電源管理產品組合之前。正如我之前所說，每 1 美元的模擬內容、混合訊號內容，至少有 1 美元的功率。我很高興地說，我們正處於將 LT 電源管理產品組合附加到 4G 和 5G 故事的早期階段。

Our next question comes from Tore Svanberg from Stifel Nicolaus.

我們的下一個問題來自 Stifel Nicolaus 的 Tore Svanberg。

Congratulations on the results. First question, I'm intrigued by the investments you're doing in health care. I assume that up until now, that's mainly sort of a B2B business. But there seems to be a lot of things going on in the consumer side. So should we expect ADI to participate both in B2B and in consumer when it comes to health care?

祝賀結果。第一個問題，我對你們在醫療保健方面所做的投資很感興趣。我認為到目前為止，這主要是 B2B 業務。但消費者方面似乎發生了很多事情。那麼，在醫療保健方面，我們是否應該期望 ADI 同時參與 B2B 和消費者領域？

It's a good question. Well, most of what we're doing is, for example in the more point-of-use, the clinical grid vital signs monitoring, we are focusing very much on the higher end of the sensing and signal processing activity there. So we're not -- true to form with ADI, we are focused on really solving the toughest problems and enabling consumers to wear new health care sensing technologies to predict and help monitor wellness and indeed recovery from health situations. So I would say that the way to think about this, Tore, is that we're going to be focused largely on more B2B type activities.

這是一個好問題。嗯，我們所做的大部分工作是，例如在更多的使用點、臨床網格生命徵象監測中，我們非常關注那裡的感測和訊號處理活動的高端。因此，我們與 ADI 一樣，專注於真正解決最棘手的問題，讓消費者能夠佩戴新的醫療保健感測技術來預測和幫助監測健康狀況，甚至從健康狀況中恢復。因此，Tore，我想說，思考這個問題的方法是，我們將主要關注更多 B2B 類型的活動。

Do you have a follow-up, Tore?

托雷，你有後續嗎？

That's very helpful. Yes. Question for Prashanth. Prashanth, you said, as you go through the manufacturing transition, your inventories are going to go up. Can you give us a sense for how much we're talking about here? Maybe you could give us a range on inventory days?

這非常有幫助。是的。問普拉珊特的問題。Prashanth，你說，當你經歷製造業轉型時，你的庫存將會增加。您能否讓我們了解一下我們在這裡討論了多少內容？也許您可以給我們一個庫存天數範圍？

Yes. Sure. Thanks, Tore. So as I mentioned in the prepared remarks, we had committed to some additional cost synergies relating to the shutdown of 2 sites that we acquired as part of the LTC acquisition. And these shutdowns should generate an incremental $100 million of cost synergies, all of which is in cost of goods. To help us through that transition, we're going to be needing to put a little bit more inventory internally on to our balance sheets. And hard to kind of pinpoint too much at this early stage, but we're estimating around 5 days is what would be necessary to kind of carry us through the -- bridging the closure of those 2 facilities. And then once those facilities are up and running, we'll burn that off.

是的。當然。謝謝，托雷。正如我在準備好的演講中提到的，我們承諾與關閉作為 LTC 收購一部分的 2 個站點相關的一些額外成本協同效應。這些停工應該會產生 1 億美元的增量成本協同效應，所有這些都計入商品成本。為了幫助我們完成這項轉變，我們需要在資產負債表上增加一些內部庫存。在這個早期階段很難確定太多，但我們估計大約需要 5 天的時間才能完成這兩個設施的關閉。一旦這些設施啟動並運行，我們就會將其燒掉。

Our next question comes from Stacy Rasgon from Bernstein Research.

我們的下一個問題來自伯恩斯坦研究中心的史黛西·拉斯貢（Stacy Rasgon）。

Back to the sell-in accounting. So if I compare the new revenue profile with the old one, I note a considerable amount of revenue, particularly from industrial that moved from the second half of '18 to the first half. As you said, you built in the first and sold off in the second, and it shows up in the change. But it was a lot of revenue. Was the magnitude of this drawdown bigger than what you would typically see in your ordinary patterns, just maybe given the stronger demand environment we had in the first half? I guess, maybe, just to put in other words, like, is the magnitude of the drawdown in the channel that we saw in the second half bigger than what we would see? And is the channel right now leaner than when it ordinarily be in a normal second half?

回到銷售會計。因此，如果我將新的收入狀況與舊的收入狀況進行比較，我會注意到相當大的收入，特別是從 18 年下半年轉移到上半年的工業收入。正如您所說，您在第一個項目中進行了建設，在第二個項目中進行了出售，這在變化中體現出來。但收入卻是不少。考慮到上半年我們的需求環境更加強勁，這種回撤的幅度是否比您通常在普通模式中看到的幅度更大？我想，也許，換句話說，我們在下半年看到的頻道回檔幅度是否比我們看到的還要大？現在的管道是否比正常下半年時更精簡？

Thanks, Stacy. Let me break that into 2 pieces. So first, if you think back to last year, it was around summer that we were one of the first companies to indicate that we were beginning to see some challenge in the factory automation space, given what was going on, particularly with China. So being proactive on that, we began to constrain the amount of inventory going into the channel in preparation of the uncertain times ahead. So yes, last year, we did see a more significant kind of correction to inventory in the channel in the second half given the macro environment.

謝謝，史黛西。讓我把它分成兩個部分。首先，如果你回想去年，大約在夏天，我們是第一批表示我們開始在工廠自動化領域看到一些挑戰的公司之一，考慮到正在發生的事情，特別是在中國。因此，我們積極主動地開始限制進入通路的庫存量，為未來的不確定時期做好準備。所以，是的，去年，考慮到宏觀環境，我們確實看到下半年通路庫存出現了更顯著的調整。

As we -- so now setting that up for this year, now that we are on sell-in accounting, that creates for some tough comps in the first half. And again, as we move into the second half now, we'll also be lapping the softer business environment as well as the inventory channel correction. So we do feel pretty good that the growth kind of gets better for industrial from here on forward. And in terms of what's in the channel, today, we're at about 7.5 weeks, and that's kind of right in the range that we guide to. As Vince mentioned, and this is important, we focused running the business on a POS basis. So the inventory in the channel for us is striking that balance in what is necessary to serve our customers, and it's less about kind of managing a particular revenue number. It is -- POS is what drives our decisions on what we put in the channel.

正如我們現在為今年設定的那樣，現在我們正在進行銷售會計，這將在上半年創造一些艱難的業績。再說一次，隨著我們現在進入下半年，我們還將經歷疲軟的商業環境以及庫存管道的調整。因此，我們確實感到非常高興，從現在開始，工業成長會變得更好。就頻道中的內容而言，今天我們的時間約為 7.5 週，這正好在我們指導的範圍內。正如 Vince 所提到的，這一點很重要，我們專注於在 POS 基礎上經營業務。因此，我們通路中的庫存在服務客戶所需的方面達到了平衡，而不是管理特定的收入數字。POS 是我們決定在頻道中投放什麼內容的動力。

Thanks, Stacy. Do you have a follow-up?

謝謝，史黛西。你有後續行動嗎？

I do. I wanted to ask about OpEx. So you were kind of flattish year-over-year in Q1. You're guiding kind of flattish in Q2. But at the same time, you're talking about continually investing in new opportunities. So I guess, in particular, given the current situation which does seem somewhat uncertain, how should we be thinking about OpEx growth maybe relative to revenue growth as we go through the rest of the year?

我願意。我想問一下關於營運支出的問題。所以第一季的業績較去年同期持平。您在第二季的指導有點平淡。但與此同時，您正在談論不斷投資新機會。因此，我想，特別是考慮到目前的情況似乎確實有些不確定，在今年剩下的時間裡，我們應該如何考慮相對於收入成長的營運支出成長？

Yes. I would say that, if you think historically, there has been a sort of a meaningful change in OpEx when we move from first quarter to second quarter. We told you in the last earnings call that, that would not be the case this year, that our first quarter would be a little bit higher but that -- and there were some one-timers that we talked about in the last call, but we're behind that. And as we move through the balance of the year, we're expecting OpEx to be relatively flattish. The biggest driver on frankly will continue to be variable compensation, which is designed to adjust the spend in line with the profit and the revenue growth. R&D today runs at about 18% of revenue, and we really consider that fully funded. So we will work within that envelope to deliver the product development needs that are required.

是的。我想說的是，如果你從歷史角度思考，當我們從第一季轉向第二季時，營運支出發生了某種有意義的變化。我們在上次財報電話會議上告訴過您，今年的情況不會是這樣，我們第一季的業績會稍高一些，但是——我們在上次電話會議中談到了一些一次性的人，但是我們支持這一點。隨著今年剩餘時間的推移，我們預計營運支出將相對持平。坦白說，最大的推動因素仍然是可變薪酬，旨在根據利潤和收入成長調整支出。如今的研發費用約佔營收的 18%，我們確實認為研發資金充足。因此，我們將在這個範圍內工作，以滿足所需的產品開發需求。

Our next question comes from Harsh Kumar, Piper Jaffray.

我們的下一個問題來自 Piper Jaffray 的 Harsh Kumar。

Congratulations on great results, great guidance. Gross margin came down, I assume that was just mix with sort of B2B sort of hurting a little bit and consumer coming in stronger. How are you expecting to manage the factory or the fab, and therefore, the utilization and gross margin in the coming few quarters?

祝賀取得了很好的成果，並得到了很好的指導。毛利率下降了，我認為這只是與 B2B 受到一點傷害以及消費者變得更強大有關。您預計如何管理工廠或晶圓廠，以及未來幾季的使用率和毛利率？

Well, first quarter, we had lower utilization. But we expect that utilization will increase in the second quarter and through the rest of our fiscal year here. So we'll, I think, keep a pretty high level of utilization. And also, the 70.3% margins that we posted in the first quarter, as the mix towards industrial improves, we would expect also the gross margin to improve. So I think, utilization is in good shape across the company, and I think as well we are probably seeing what would be the lower point of the gross margin activity right now, and that will certainly improve as the industrial business improves.

嗯，第一季度，我們的利用率較低。但我們預計第二季和本財年剩餘時間的使用率將會增加。因此，我認為我們將保持相當高的利用率。此外，我們在第一季發布的 70.3% 的利潤率，隨著工業結構的改善，我們預計毛利率也會改善。因此，我認為，整個公司的利用率狀況良好，而且我認為我們現在可能會看到毛利率活動的最低點，隨著工業業務的改善，這肯定會有所改善。

Harsh, your comments are correct. Just one clarification there. It was growth in consumer, but it was also the growth in communications. So both of them were responsible for the end-market mix. And do remember that we are left -- this was the current quarter where we have the typical holiday shutdown. So utilizations do -- are at the lowest point typically over the holiday season. So with that, we'll go to our next caller.

嚴厲，你的評論是正確的。這裡只有一處澄清。這是消費者的成長，也是通訊的成長。因此，他們兩人都負責終端市場的組合。請記住，我們已經離開了——這是本季我們典型的假期關閉情況。因此，利用率通常在假期期間處於最低點。這樣，我們就可以接聽下一個來電者了。

You can have a follow-up, Harsh?

你可以跟進一下嗎，哈什？

Yes. So quick question on the automotive. So I got excited looking at your automotive number before realizing that there's a lot of sell-in stuff going on. Could you give us some color on how it held up if you back out the sell-in? And if you are unwilling to do that, maybe talk about, you had sort of laid out some targets on when you start to see some real growth, mid- to high-single digit kind of numbers in automotive a year or even slightly more than that out. How do you feel about that number -- that time frame?

是的。關於汽車的快速問題。因此，我很高興看到您的汽車號碼，然後意識到有很多出售的東西正在進行中。您能否告訴我們，如果您取消賣出，它的表現會如何？如果你不願意這樣做，也許可以談談，你已經制定了一些目標，當你開始看到一些真正的成長時，汽車領域的中高個位數數字一年甚至略多於那個出來了。你對這個數字——那個時間框架有何看法？

Great. Great, Harsh. Thank you. I'm going to do the first part and let Vince take the second part. So as I said in the prepared remarks, we moved some customers who were direct into the channel. So as a result, there was a little bit of build in inventory associated with that. Normally that would not be revenue for us, remember that. And the growth, if you want to think about what does the auto growth do to sell-in, that would have been a flat number. So auto growth in the quarter, as we think about it, natural demand was flattish. And we would say that the -- for the first half, we kind of expect that to be flattish because the second quarter is going to have the corresponding offset from what we -- from the inventory build that we had in the first quarter. Channel inventory overall was kind of minimal quarter-over-quarter. So auto was up, but the other markets were down. With that let me -- let Vince talk to kind of longer-term auto growth.

偉大的。太好了，嚴酷。謝謝。我將完成第一部分，讓文斯完成第二部分。正如我在準備好的演講中所說，我們將一些直接進入該管道的客戶轉移了。因此，與此相關的庫存有所增加。請記住，通常這不會成為我們的收入。而成長，如果你想考慮汽車成長對銷售的影響，那將是一個持平的數字。因此，正如我們所想，本季的汽車成長自然需求持平。我們會說，對於上半年，我們預計會持平，因為第二季將與第一季的庫存建設產生相應的抵消。渠道庫存總體環比處於最低水準。因此汽車市場上漲，但其他市場下跌。讓我——讓文斯談談長期的汽車成長。

Yes. So we're expecting to the -- through 2018, the ADI specific, the legacy ADI portion of our business grew in the high-single digits. The LT portion was in the lower single digits. But let me tell you a couple of things that we've been driving hard in our business. Our BMS, the battery management solutions, that were legacy LTC, we've been growing that in double digits over the past 3 quarters or so. And we're looking at the remainder of this year, the full 2019 as a double-digit growth year in that particular area. And in fact, I think Prashanth indicated in his CapEx remarks that one of the reasons we're increasing CapEx is to enable us to put the equipment in place to get our products to market faster in that particular area and to put the test coverage that we need as well in our back-end.

是的。因此，我們預計到 2018 年，我們業務中 ADI 特定的、傳統的 ADI 部分將實現高個位數成長。LT 部分位於較低的個位數。但讓我告訴您一些我們在業務中一直努力推動的事情。我們的 BMS（電池管理解決方案）是傳統的 LTC，在過去 3 個季度左右的時間裡，我們一直以兩位數的速度成長。我們預計今年剩餘時間，即整個 2019 年，該特定領域將實現兩位數成長。事實上，我認為Prashanth 在他的資本支出評論中指出，我們增加資本支出的原因之一是使我們能夠將設備到位，以便將我們的產品更快地推向該特定領域的市場，並將測試覆蓋範圍我們的後端也需要。

I'm glad to say as well that we're winning incremental power sockets in the automotive sector. We're bringing power to new customers. And we've seen just in this last quarter, in fact our power portfolio grew in the automotive sector on a year-over-year basis. Legacy ADI, our infotainment business, continues to flourish, and we're winning many premium audio sockets. And also attaching LT power again to everything that we do in the automotive area. So we've just launched as well some very exciting high-resolution radar technology at the 77-gigahertz level, so that's yet to come. But all the early indications are that we're starting to get traction there. So I think we've many technologies and product areas that are well aligned with the critical themes in automotive around autonomy and electrification. And we now have the best portfolio in the industry to attack these opportunities.

我也很高興地說，我們正在贏得汽車行業的增量電源插座。我們正在為新客戶帶來力量。事實上，我們在上個季度看到，我們在汽車領域的電源組合比去年同期成長。我們的資訊娛樂業務傳統 ADI 繼續蓬勃發展，我們贏得了許多優質音訊插座。我們也將 LT 電源再次應用到我們在汽車領域所做的一切。因此，我們剛剛推出了一些非常令人興奮的 77GHz 等級的高解析度雷達技術，所以這還沒有到來。但所有早期跡像都表明我們正在開始在那裡獲得關注。因此，我認為我們有許多技術和產品領域與汽車領域圍繞自動駕駛和電氣化的關鍵主題非常契合。我們現在擁有業內最好的產品組合來抓住這些機會。

Our next question is from Craig Hettenbach from Morgan Stanley.

我們的下一個問題來自摩根士丹利的克雷格·赫滕巴赫。

The commentary on B2B, up slightly, can you frame that, if you look it between comm, industrial and automotive, just kind of a rough sense of how you expect those markets to trend year-over-year?

B2B 的評論略有上升，如果您將其放在通訊、工業和汽車之間，您能否大致了解一下您預計這些市場的同比趨勢如何？

Sure. Craig, comm will lead that growth, I would say. Industrial will be down year-over-year. Remember, last 2Q was a very, very strong quarter. I think we grew double digits sequentially in 2Q. That was kind of our peak industrial revenue a year ago. It was a tough comp, plus we also talked about the inventory change in the channel year-over-year. Automotive is going to be down year-over-year, as we talked about the sell-in versus sell-through accounting. So for auto, I would think, look at basically first half '19 flattish versus first half '18.

當然。我想說，克雷格通訊將引領這一成長。工業將年減。請記住，上個第二季是一個非常非常強勁的季度。我認為我們在第二季度連續成長了兩位數。這是我們一年前工業收入的高峰。這是一個艱難的比較，我們還討論了通路中庫存的同比變化。正如我們討論的銷售與銷售會計核算一樣，汽車行業將同比下降。因此，對於汽車產業，我認為，19 年上半年與 18 年上半年相比基本上持平。

And that is flattish auto with unit -- with vehicle unit sales down. So we do recognize that that is a good accomplishment given the decline in vehicle production.

汽車銷量持平－汽車銷量下降。因此，我們確實認識到，考慮到汽車產量的下降，這是一項很好的成就。

So then comms will be another strong double-digit grower year-over-year. Pull that together, it increases slightly sequentially. And that's even with, I'll call, the offset of auto being a bit weaker because of the sell-in accounting. If you took that away, B2B is up probably 2%, 3% year-on-year.

因此，通訊將成為另一個強勁的兩位數同比增長者。把它們放在一起，它會依次稍微增加。即使是這樣，我會說，由於銷售會計的原因，汽車的抵銷額有點弱。如果去掉這一點，B2B 年比可能成長 2%、3%。

Got it. Appreciate the color there. And then, Vince, just a question. Understanding there's some near-term cyclical pressure on the industrial market, can you talk through just design engagements with customers and things that once you see some of the cyclical pressure ease, how that business could get kind of back on track?

知道了。欣賞那裡的顏色。然後，文斯，只是一個問題。了解工業市場近期存在一些週期性壓力，您能否談談與客戶的設計互動，以及一旦您看到週期性壓力有所緩解，該業務如何才能回到正軌？

It's a good question, Craig. We have an opportunity pipeline now both on legacy ADI and LT legacy power products, in particular, that is at an all-time record high. So we're busily converting that pipeline across-the-board, and we've a broader and deeper position in the automation sector. We've extended our reach into electronic test and measurement, which complements our more vertically oriented memory test area quite well. And the energy sector as well is doing well for the company and on a year-over-year basis has been growing.

這是個好問題，克雷格。我們現在在傳統 ADI 和 LT 傳統電源產品方面都有機會，尤其是，這是歷史最高水準。因此，我們正在忙於全面轉換該管道，並且我們在自動化領域擁有更廣泛、更深入的地位。我們已將業務範圍擴展到電子測試和測量領域，這很好地補充了我們更垂直的記憶體測試領域。該公司的能源部門也表現良好，並且逐年成長。

So -- all the things we do around sensing, measuring, interpreting, powering and connecting, those technologies are getting used in more and more places in the industrial sector and in the aerospace and defense as well. So we have a bigger portfolio. We've got more sales and application resource out there, deeply engaging with our customers every day. So my sense is, if I were to put a target growth number on it, I think we have the opportunity to grow consistently in the mid- to high-single digit area over the coming 5, 7 years.

因此，我們圍繞感測、測量、解釋、供電和連接所做的所有事情，這些技術都在工業領域以及航空航太和國防領域越來越多的地方使用。所以我們有一個更大的投資組合。我們擁有更多的銷售和應用資源，每天與客戶深入互動。所以我的感覺是，如果我要設定一個目標成長數字，我認為我們有機會在未來 5、7 年裡在中高個位數區域持續成長。

Our next question comes from Blayne Curtis, Barclays.

我們的下一個問題來自巴克萊銀行的 Blayne Curtis。

This is Tom O'Malley on for Blayne Curtis. Just want to cover something you guys mentioned early in the call. I think you said that you moved $80 million from comm to consumer. Could you describe what you're moving over and kind of the growth profile of that chunk of revenue?

我是湯姆·奧馬利，替布萊恩·柯蒂斯發言。只是想談談你們在通話中早些時候提到的一些事情。我想你說過你將 8000 萬美元從通訊轉移到了消費者。您能否描述一下您正在轉移的內容以及這部分收入的成長？

Tom, this mainly relates to prosumer business. So think of like Polycoms and that type of stuff for conference calls, that -- those type of things we moved from comms. The legacy for Linear were in communications, we put those into consumer where ADI puts them, as prosumer typically is a GDP-plus business growth wise.

湯姆，這主要涉及產消者業務。因此，想想 Polycom 以及用於電話會議的那種東西，我們從通訊中轉移出來的那種東西。Linear 的遺產在於通訊領域，我們將其投入 ADI 投入的消費者領域，因為產消者通常是 GDP+ 業務成長的明智者。

It was customer mapping as we continue to finish the integration process with LTC.

當我們繼續完成與 LTC 的整合流程時，這就是客戶映射。

Yes. So it's basically the nonportable stuff, and it looks and feels like a B2B business. Lots of customers and products and longer product life cycles when compared to the portable area. So that's the change that's taking place.

是的。所以它基本上是不可移植的東西，而且看起來和感覺起來都像 B2B 業務。與便攜式區域相比，擁有大量的客戶和產品，且產品生命週期更長。這就是正在發生的變化。

Do you have a follow-up?

你有後續行動嗎？

Yes. I guess, just moving on more towards the comm side. You guys were talking about how 4G is really still strong and you guys are seeing the 4x content increase for massive MIMO ahead of what people are really excited about in 5G. Can you kind of talk about the timing of that? And how much legs, you think, are left of that before that 5G transition? Should that happen in the next couple of quarters?

是的。我想，只是更多地轉向通信方面。你們正在談論 4G 如何仍然強大，你們看到大規模 MIMO 的內容增加了 4 倍，領先於人們真正興奮的 5G。能談談具體時間嗎？您認為在 5G 過渡之前還剩下多少腿？這應該在接下來的幾個季度發生嗎？

Well, different people have different definitions of what constitutes 4G and 5G. I would say anything that is 4G with a massive MIMO connected to it is 4.5G, some people call that 5G. So that's already in play, and that's one of the strongest growth drivers in our portfolio. And I think that will be the story for, at least, another 12 to 18 months. I think it's going to be the very advanced 4G technologies that are beginning to utilize that bridge technology to 5G, which is massive MIMO. I see true massive -- true 5G being a 2021, '22 introduction point. So I think -- you will see trials, of course, in the meantime of the classical microwave-driven 5G, but I think that's still a couple of years out.

那麼，不同的人對4G和5G的定義不同。我想說，任何連接有大規模 MIMO 的 4G 都是 4.5G，有些人稱之為 5G。所以這已經在發揮作用，這是我們投資組合中最強勁的成長動力之一。我認為這種情況至少還會持續 12 到 18 個月。我認為非常先進的 4G 技術將開始利用 5G 的橋樑技術，即大規模 MIMO。我認為真正的大規模——真正的 5G 是 2021 年、22 年的引進點。所以我認為，當然，在傳統的微波驅動 5G 的同時，你會看到試驗，但我認為這還需要幾年的時間。

Our next question is from William Stein, SunTrust.

我們的下一個問題來自 SunTrust 的 William Stein。

First, I'd like you to remind us about the capital allocation strategy for the company. There was a dividend increase. Also taking a step back, you're now below 2 turns of net leverage. There was for a time a concern around leverage that's clearly behind us now. But the last 2 acquisitions you did, Hittite and Linear, I think, are proving very successful. And in the context of the broader capital allocation strategy, I'm hoping you might comment on your appetite for M&A, which has been, maybe gone a little bit out of style in the last year or so, but I would suspect should still be on the top of ADI's mind given the success you've had?

首先，請您提醒我們有關公司的資本配置策略。股息增加。同樣退後一步，您現在的淨槓桿率低於 2 圈。曾經有一段時間，人們對槓桿的擔憂顯然已經過去了。但我認為，你最近兩次收購 Hittite 和 Linear 都非常成功。在更廣泛的資本配置策略的背景下，我希望您能評論一下您對併購的興趣，這種興趣在去年左右可能已經有點過時了，但我懷疑仍然應該是鑑於您所取得的成功，ADI 的首要考慮因素是什麼？

Well, the first call on our capital is to make sure that we invest to the fullest extent in building the greatest products and getting these products to market. So that's the first call. And we're investing, in fact our OpEx is at a record level this year, our fixed OpEx. And so that's the first call on capital. We have committed to returning all our free cash flow after debt repayment to our shareholders. We -- that's the track we're on. We are very happy with where we are right now as a company with the combination of ADI legacy, Hittite and LT. So we're still integrating LT and creating the leverage that we know we can create with that franchise. So that's where we are right now. And we've been doing some tuck-in acquisitions over the last 12 months, we'll continue to do that, but I think, that's the way to think about it right now.

嗯，對我們資本的首要要求是確保我們最大程度地投資於打造最好的產品並將這些產品推向市場。這是第一通電話。我們正在投資，事實上我們的營運支出今年處於創紀錄的水平，我們的固定營運支出。這是對資本的第一次呼籲。我們承諾在償還債務後將所有自由現金流返還給股東。我們——這就是我們正在走的軌道。作為一家結合了 ADI 傳統、Hittite 和 LT 的公司，我們對目前的處境感到非常滿意。因此，我們仍在整合 LT 並創造我們知道可以利用該特許經營權創造的槓桿作用。這就是我們現在的處境。過去 12 個月我們一直在進行一些收購，我們將繼續這樣做，但我認為，這就是現在考慮的方式。

Do you have a follow-up, Will?

威爾，你有後續嗎？

Yes. I'm wondering if you can comment on the degree to which you believe the trade conflict has been hurting your business. I think it's clear, there has been some effect, maybe not as much as others because, in particular of the comm strength, but to what degree you see that already embedded in orders? And what you think sort of the future holds if there is a trade agreement in regards to your backlog and your trend of business?

是的。我想知道您是否可以評論一下您認為貿易衝突對您的業務造成的損害程度。我認為很明顯，已經產生了一些影響，可能沒有其他影響那麼大，因為，特別是通信強度，但您看到這種影響在多大程度上已經嵌入到訂單中？如果就您的積壓訂單和業務趨勢達成貿易協議，您認為未來會怎樣？

Let me start and then let Vince add some more color. I just want to get to your question on orders. So -- I know that's probably on many people's minds. January orders were stronger than December. Now that's not unusual for us, but it is a good sign, and that was strength in orders across all of our B2B markets. Now February has Chinese New Year, so there's a lot of noise in that. But going into the Chinese New Year, orders remained strong. And while it is a noisy metric, and we do -- but we do look at it, our 4-week book-to-bill is higher than both our 8-week and our 13-week. But I do want to emphasize that is a very noisy metric, but for whatever that's worth.

讓我開始，然後讓文斯添加更多顏色。我只想回答你關於訂單的問題。所以——我知道這可能是很多人的想法。1 月訂單強於 12 月。現在這對我們來說並不罕見，但這是一個好兆頭，這就是我們所有 B2B 市場訂單的強勁表現。現在二月是農曆新年，所以有很多噪音。但進入農曆新年，訂單依然強勁。雖然這是一個嘈雜的指標，但我們確實觀察了它，我們的 4 週訂單到帳單高於我們的 8 週和 13 週。但我確實想強調，這是一個非常吵雜的指標，但無論其價值如何。

I think that's fine, Prashanth.

我認為那很好，普拉珊斯。

And our next question comes from John Pitzer, Crédit Suisse.

我們的下一個問題來自瑞士信貸銀行的約翰‧皮策 (John Pitzer)。

Both of mine are relative to the comms business. I guess, Vince, when I adjust for the extra week and the change in accounting, the comms business was up north of 40% year-over-year in the January quarter, just excellent results. But as you start to kind of lap the law of large numbers and hard compares, what do you think the sustainable growth rate in the comms business should be over a longer period of time? I guess, if you look at the last several quarters, you've grown revenue on a quarterly basis by almost $100 million. I'm wondering if you could help us break down the buckets of that growth between sort of massive MIMO, 5G, Hittite. And maybe to follow on to Will's question. There is some concern out there that perhaps you're seeing a pull-in from some of your Chinese customers relative to concerns about their ability to get parts or tariffs. Are you seeing any sort of pull-ins in these numbers or not?

我的兩個都與通信業務有關。我想，文斯，當我根據額外的一周和會計變化進行調整時，一月份季度的通訊業務同比增長了 40% 以上，業績非常出色。但是，當您開始遵循大數定律和硬比較時，您認為通訊業務在較長時間內的可持續成長率應該是多少？我想，如果你看看過去幾個季度，你會發現每季的營收成長了近 1 億美元。我想知道您是否可以幫助我們分解大規模 MIMO、5G、Hittite 之間的成長。也許可以繼續威爾的問題。有人擔心，也許您會看到一些中國客戶的參與，因為他們擔心他們獲得零件或關稅的能力。您是否看到這些數字有任何拉動？

Well, I think, there probably is some. And I don't see anything unnatural in the numbers incidentally. But there is obviously some pull-in. There is anxiety around the current trade tension situation. But also remember, there are -- particularly in China, there are planned releases of advanced 4G systems and the trialing of 5G systems, so that's taking place.

嗯，我想，可能有一些。順便說一句，我並沒有看到這些數字有什麼不自然的地方。但顯然有些吸引力。當前的貿易緊張局勢令人擔憂。但也要記住，特別是在中國，計劃發布先進的 4G 系統並試驗 5G 系統，所以這一切正在發生。

I think our story is dominated primarily by the fact that we have much more content than we've ever had historically in these systems of ever increasing complexity. It's -- off the top of my head, John, it's hard to give you a breakdown of what the individual pieces are in terms of the contribution from legacy ADI, Linear and Hittite. But as I mentioned in the prepared remarks and certainly in the Q&A here, we're beginning to see the early stages of LTC power being adopted. So the portfolio today is largely dominated by legacy ADI mixed signal. We're at the early stage of adoption of LT. And Hittite is a tremendous source of strength in the higher frequency -- connect the -- products that connect to the antenna. And all that said, my expectation is with the content and with the expectations of our customers, that that business will grow at double-digits for the next several years.

我認為我們的故事主要是由這樣一個事實主導的：在這些日益複雜的系統中，我們擁有比歷史上更多的內容。John，我突然想到，很難向您詳細介紹各個部分對傳統 ADI、Linear 和 Hittite 的貢獻。但正如我在準備好的發言中以及此處的問答中提到的，我們開始看到 LTC 電源被採用的早期階段。因此，今天的投資組合主要由傳統的 ADI 混合訊號主導。我們正處於採用 LT 的早期階段。Hittite 是連接天線的高頻產品的巨大力量來源。儘管如此，我的期望是，隨著內容和客戶的期望，該業務將在未來幾年以兩位數成長。

And then Vince...

然後文斯...

Thanks John, in the interest of time we'll -- go ahead, John.

謝謝約翰，為了節省時間，我們將——繼續，約翰。

You got me started. We can take it off-line. Well, I was just going to say on the 4x content story, what percentage of your comms revenue does that content story cover? Or are you really kind of guiding that at some point in the future we can go back and look at a quarterly revenue run rate that's kind of 4x what it was maybe 2 or 3 years ago?

你讓我開始了。我們可以讓它離線。好吧，我只是想說關於 4x 內容故事，該內容故事佔您的通訊收入的百分比是多少？或者你真的在指導我們在未來的某個時候可以回顧一下季度收入運行率，大約是 2 或 3 年前的 4 倍？

So at a high level, John, 2018 was really about share gains on traditional 4G. Doesn't really include that 4x content. That 4x content comment relates to, as you move to more radios and massive MIMO, the radios go up by 8x, the content opportunity for us up to 4x, and we're adding Linear power on to that. So that's really in the future. So at a high level, '18 is about 4G share gains, '19 and beyond will be about moving to massive MIMO and the 4x content.

John，從較高的層面來看，2018 年實際上是關於傳統 4G 份額的成長。並不真正包含 4x 內容。4x 內容評論涉及到，當您轉向更多無線電和大規模 MIMO 時，無線電將增加 8 倍，我們的內容機會將增加到 4 倍，並且我們將在此基礎上添加線性功能。所以這確實是未來的事。因此，從較高的層面來看，'18 涉及 4G 份額的成長，'19 及以後將涉及轉向大規模 MIMO 和 4x 內容。

Your last question comes from C.J. Muse, Evercore.

你的最後一個問題來自 Evercore 的 C.J. Muse。

I guess to follow-up on a handful of the previous questions. Your industrial business definitely proved more resilient than I think most of us were thinking coming in. And so just curious, how much of that do you think was a result of moving to sell-in versus your particular portfolio?

我想跟進之前的一些問題。事實證明，你們的工業業務確實比我們大多數人想像的更有彈性。所以我很好奇，您認為其中有多少是由於與您的特定投資組合相比轉向賣出的結果？

I would say, none of that was really due to sell-in. Remember that industrial business largely goes through the channel. We have a very tough compare in the first half because in 2018, we built inventory in the channel, so that is primarily the industrial business. As I mentioned in my prepared remarks, we saw growth in aerospace, defense, electronic test and measurement, which more than helped to offset the headwind we had in automation and memory test, which we've signaled some time ago. The book-to-bill is above parity. So a little bit lower than normal, but that's already reflected in our outlook. I mentioned orders have gotten better. So I think, Vince made the comment, we think we continue to grow from here.

我想說，這一切都不是真正因為拋售造成的。請記住，工業業務很大程度上是透過管道進行的。我們在上半年進行了非常艱難的比較，因為2018年我們在通路中建立了庫存，所以這主要是工業業務。正如我在準備好的演講中提到的那樣，我們看到了航空航天、國防、電子測試和測量領域的增長，這極大地幫助抵消了我們在自動化和內存測試方面遇到的阻力，我們不久前已經表示過這一點。訂單出貨比高於平價。比正常水平稍低一些，但這已經反映在我們的前景中。我提到訂單已經變得更好了。所以我認為，文斯發表了評論，我們認為我們從這裡繼續成長。

That's helpful. And I guess, as a quick follow up, I guess, more limited commentary on the consumer side, so I figured [I] would start there. How are you thinking about seasonality? And kind of given what you know today design-win-wise, what that business can look like through calendar '19?

這很有幫助。我想，作為快速跟進，我想，消費者方面的評論更加有限，所以我想[我]會從那裡開始。您如何看待季節性？鑑於您今天所了解的設計雙贏的知識，該業務在日曆“19”中會是什麼樣子？

Yes, I think 2Q is usually the low point of the year for that business, just given the demand there. And if you think about it, on last call, Vince highlighted that we think consumer will be down 10% to 20% in fiscal '19, and that's kind of what we're sticking to for outlook.

是的，我認為第二季通常是該業務一年中的最低點，考慮到那裡的需求。如果你仔細想想，在上次電話會議上，Vince 強調我們認為 19 財年消費者支出將下降 10% 到 20%，這也是我們對前景的堅持。

And thank you, everyone, for joining us this morning. A copy of the transcript will be available on our website, and all available reconciliations and additional information can also be found at the Quarterly Results section of our Investor Relations site at investor.analog.com. Thanks, again, for joining us and your continued interest in Analog Devices.

感謝大家今天早上加入我們。我們的網站上將提供文字記錄的副本，所有可用的對帳資訊和其他資訊也可以在我們的投資者關係網站 Investor.analog.com 的季度業績部分找到。再次感謝您加入我們以及您對 Analog Devices 的持續關注。

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。