亞德諾半導體 (ADI) 2019 Q2 法說會逐字稿

Good morning and welcome to the Analog Devices First Quarter (sic) [Second Quarter] Fiscal Year 2019 Earnings Conference Call, which is being audio webcast via telephone and over the web. I'd like to now introduce your host for today's call, Mr. Michael Lucarelli, Director of Investor Relations. Sir, the floor is yours.

早安，歡迎參加 Analog Devices 第一季（原文如此）[第二季] 2019 財年財報電話會議，該電話會議正在透過電話和網路進行音訊網路直播。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, Sheryl, and good morning, everybody. Thanks for joining our second 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 財年第二季電話會議。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 date of this call. We undertake no obligation to update these forward-looking statements in light of new information or future events.

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。

Our comments today about ADI's second quarter fiscal 2019 financial results and short-term outlook will also include non-GAAP financial measures, which excludes special items. When comparing our results to historical performance, special items are also excluded from the prior quarter and year-over-year results. Reconciliations of these non-GAAP measures to the most directly comparable GAAP measures and additional information about our non-GAAP measures are included in today's earnings release.

我們今天對 ADI 2019 財年第二季財務業績和短期前景的評論還將包括非 GAAP 財務指標，其中不包括特殊項目。將我們的業績與歷史業績進行比較時，上一季和同比業績中也排除了特殊項目。這些非公認會計準則衡量指標與最直接可比較的公認會計準則衡量指標的調節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。

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

好的。接下來，我會將其轉交給 ADI 執行長 Vincent Roche。文斯？

Thanks very much, Mike, and a very good morning to everybody on the call. Now before I get into my recap of the quarter, I wanted to briefly touch on recent developments.

非常感謝，麥克，祝大家早安。現在，在回顧本季之前，我想先簡單介紹一下最近的進展。

As you're no doubt aware, the U.S. government announced last week that it's restricting a large communications company from acquiring U.S. products and technology. While this will have at least a short-term impact on our communications business, our business is global, broad and robust and we'll manage through this. Prashanth will give a bit more insight into the anticipated financial impact of this development during his particular section.

眾所周知，美國政府上周宣布限制一家大型通訊公司收購美國產品和技術。雖然這至少會對我們的通訊業務產生短期影響，但我們的業務是全球性的、廣泛且穩健的，我們將妥善應對。普拉山斯將在他的特定部分中更深入地了解這一發展的預期財務影響。

So now on to our highlights. The second quarter of fiscal '19 was another successful quarter for ADI with revenue from our B2B markets increasing year-over-year once again. This represents the 12th consecutive quarter of annual B2B revenue growth, which is really a testament to the diversity of our franchise and our ability to innovate ahead of secular growth opportunities.

現在我們來看看我們的亮點。19 財年第二季是 ADI 另一個成功的季度，我們的 B2B 市場營收再次較去年同期成長。這代表年度 B2B 收入連續第 12 個季度成長，這確實證明了我們特許經營的多樣性以及我們在長期成長機會之前進行創新的能力。

Revenue of $1.53 billion came in at the high end of our guidance, led by strong year-over-year growth from our communications applications across multiple segments. Adjusted gross and operating margins increased compared to last quarter to 70.6% and 41.5%, respectively. All told, adjusted EPS was $1.36, which was also at the high end of outlook. Now over the past 12 months, we've generated approximately $2.1 billion in free cash flow or 34% of revenue. And during that time period, we've returned more than 100% of free cash flow to our shareholders after debt repayments.

15.3 億美元的收入達到了我們指導的上限，這得益於我們跨多個細分市場的通訊應用程式的強勁同比增長。調整後毛利率和營業利潤率較上季分別成長至 70.6% 和 41.5%。總而言之，調整後每股收益為 1.36 美元，也處於預期的上限。在過去的 12 個月裡，我們產生了約 21 億美元的自由現金流，佔營收的 34%。在此期間，我們在償還債務後將超過 100% 的自由現金流返還給股東。

Now before we move on to the financial section of our call, I'd like to continue our discussion around ADI's key markets, their trends and ADI's strategic initiatives, positioning us to capitalize on these opportunities. We previously discussed our strong position in the wireless market, particularly in massive MIMO and 5G, where our content opportunity is up to 4x compared to traditional 4G systems. So today, I'm going to talk about the other 1/3 of our comms business, namely the wireline market.

現在，在我們進入電話會議的財務部分之前，我想繼續討論 ADI 的主要市場、其趨勢以及 ADI 的策略舉措，使我們能夠利用這些機會。我們之前討論過我們在無線市場的強勢地位，特別是在大規模 MIMO 和 5G 領域，與傳統 4G 系統相比，我們的內容機會高達 4 倍。所以今天我要談談我們通訊業務的另外1/3，也就是有線市場。

The wireline market is very profitable. It's a steady growth business for ADI with a combined company having grown at a high single-digit rate annually for the past 5 years. The market and its challenges around precision, control and power are a perfect match for ADI's comprehensive portfolio and domain expertise. There are many applications within the wireline business. But today, I want to focus on the fastest-growing segment, namely the optical market.

有線市場利潤豐厚。對於 ADI 來說，這是一項穩定成長的業務，合併後的公司在過去 5 年中每年都以高個位數的速度成長。市場及其圍繞精度、控制和功率的挑戰與 ADI 全面的產品組合和領域專業知識完美匹配。有線業務中有許多應用。但今天，我想專注於成長最快的領域，即光學市場。

The primary driver of the wireline market is unsurprisingly exponential growth in demand for digital data. IP traffic across carrier networks and data centers is doubling every 2.5 years driven primarily by cloud compute, backhaul of 4G and 5G networks and consumption of data-rich content. This extraordinary growth represents a significant challenge for the carrier networks and data centers that transport and manage this data as it's not possible to lay new optical fiber or double data center floor space every 2 years. So their challenge is ADI's opportunity.

毫不奇怪，有線市場的主要驅動力是數位數據需求的指數級增長。營運商網路和資料中心的 IP 流量每 2.5 年就會翻一番，這主要是由雲端運算、4G 和 5G 網路回程以及資料豐富內容的消費所推動的。這種非凡的成長對傳輸和管理這些數據的營運商網路和數據中心構成了重大挑戰，因為不可能每兩年鋪設新光纖或將數據中心佔地面積增加一倍。因此，他們的挑戰正是 ADI 的機會。

The 2 primary ways to solve their data throughput problem are increasing the speed of the existing fiber network and reducing the form factor of data ports to increase data density. Carriers are increasing their speed of their networks by upgrading from 100 gigabits per second to 400 Gps and in some cases, to more than 1 terabit per second. At the same time, optical modules are being scaled down by 2, 4 and even 10x. At this level of data throughput, our customers are pushing the optical components and subsystems, such as lasers, modulators and coherent signal processing, to their physical limits.

解決資料吞吐量問題的兩種主要方法是提高現有光纖網路的速度和減少資料連接埠的外形尺寸以增加資料密度。營運商正在提高網路速度，從每秒 100 吉比特升級到 400 Gps，在某些情況下甚至升級到每秒超過 1 太比特。同時，光模組的尺寸正在縮小2倍、4倍甚至10倍。在這種資料吞吐量水準上，我們的客戶正在將光學組件和子系統（例如雷射、調製器和相干訊號處理）推向其物理極限。

Precisely controlling throughput, managing synchronization, compensating for signal impairments and reducing system noise is critical to overall system performance. By partnering closely with our customers, we're developing highly optimized optical control and power management products that match the smaller form factor required in next-generation optical systems. Importantly, for every 4x increase in speed in an existing network, our control content opportunity increases by more than 1/3. This 400 gig control port space is the fastest-growing segment of our optical business, largely driven by the rapid growth in data center port traffic.

精確控制吞吐量、管理同步、補償訊號損​​傷和降低系統雜訊對於整體系統效能至關重要。透過與客戶密切合作，我們正在開發高度最佳化的光學控制和電源管理產品，以滿足下一代光學系統所需的較小外形尺寸。重要的是，現有網路的速度每提高 4 倍，我們的控制內容機會就會增加 1/3 以上。這個 400 GB 控制埠空間是我們光業務中成長最快的部分，很大程度上是由資料中心連接埠流量的快速成長所推動的。

But a high-precision signal chain only solves part of the problem in these next-gen carrier and data center networks. Denser optical networks create power and thermal challenges that our customers must also mitigate to avoid harmful impact on the network's potential speed and data throughput, not to mention impact on their operating expense as power and cooling represent over 30% of a data center's total cost of ownership. That is a huge opportunity for our power portfolio. We're taking our core power franchises, namely µModule and Silent Switcher technologies, for example, and leveraging ADI's market-leading position to broaden our customer reach and develop optimized solutions for this market.

但高精度訊號鏈只能解決這些下一代營運商和資料中心網路中的部分問題。更密集的光網路帶來了電力和散熱挑戰，我們的客戶還必須緩解這些挑戰，以避免對網路的潛在速度和數據吞吐量產生有害影響，更不用說對其營運費用的影響，因為電力和冷卻佔資料中心總成本的30% 以上。所有權。這對我們的電力產品組合來說是一個巨大的機會。例如，我們正在利用我們的核心電源特許經營權，即 µModule 和 Silent Switcher 技術，並利用 ADI 的市場領先地位來擴大我們的客戶範圍並為該市場開發優化的解決方案。

In addition to optical port solutions, we also supply innovative power sequencing and hot swap products. These technologies enable our customers to mitigate costly downtime and avoid disruptions by managing the highly complex power chain of networking servers and routers. The addressable market for these solutions continues to grow as port and data traffic density continues to increase. Now I've said in the past that for every $1 of signal chain we sell into a system, there's at least $1 of power opportunity. And the wireline market is no different. Since our combination with LTC, we've seen our pipeline in power for the wireless market expand very significantly.

除了光端口解決方案外，我們還提供創新的電源排序和熱插拔產品。這些技術使我們的客戶能夠透過管理高度複雜的網路伺服器和路由器電源鏈來減少代價高昂的停機時間並避免中斷。隨著連接埠和數據流量密度的不斷增加，這些解決方案的潛在市場也在不斷增長。我過去說過，我們每向系統出售 1 美元的訊號鏈，就至少有 1 美元的電力機會。有線市場也不例外。自從我們與 LTC 合併以來，我們已經看到我們的無線市場電源管道顯著擴大。

So in closing, we expect continued profitable growth over the long term in the wireline market as control and power challenges intensify in response to the market's densification with ever-increasing bandwidth demand. And as providers shift to silicon photonics, we expect even more opportunity for ADI as control and power solutions are necessary to compensate for the lower inherent performance of these silicon-based photonic solutions.

因此，最後，我們預計有線市場的長期獲利將持續成長，因為控制和電源挑戰將隨著市場的密集化和不斷增加的頻寬需求而加劇。隨著供應商轉向矽光子學，我們預計 ADI 會獲得更多機會，因為需要控制和電源解決方案來彌補這些矽基光子解決方案較低的固有性能。

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

接下來，讓我把它交給 Prashanth。

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

謝謝你，文斯。大家早上好，請容許我對第二季財報電話會議表示歡迎。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。

Now on to the quarter. In the face of geopolitical uncertainty, we are pleased to report strong second quarter results with revenue, operating margin and EPS all coming in above the midpoint of our guidance. As usual, I will cover the end markets before moving to the P&L.

現在進入本季。面對地緣政治的不確定性，我們很高興地報告強勁的第二季業績，營收、營業利潤率和每股盈餘都高於我們指導的中點。像往常一樣，我將在討論損益表之前先介紹終端市場。

Our second quarter B2B revenue increased approximately 3% year-over-year, driven by strong growth in our communications business. The industrial market, which represented 50% of sales in the quarter, performed as expected, decreasing mid-single digits compared to the year ago quarter. Strength in aerospace and defense was outweighed by the anticipated weakness in our automation and memory test businesses.

在通訊業務強勁成長的推動下，我們第二季的 B2B 營收年增約 3%。佔本季銷售額 50% 的工業市場表現符合預期，與去年同期相比下降了中個位數。我們的自動化和記憶體測試業務的預期疲軟抵消了航空航太和國防領域的優勢。

The comms market represented 24% of sales during the quarter and experienced very strong double-digit year-over-year growth, led by ongoing strength in wireless while our wireline franchise also continued to grow nicely. Our results this quarter reflect ADI's higher content and share in 5G. We believe 5G remains in the early stages, and our technology remains a key enabler. And as Vince just highlighted in his section, our wireline business is well positioned to continue to grow profitably in the years ahead.

通訊市場佔本季銷售額的 24%，在無線業務持續強勁的帶動下，實現了非常強勁的兩位數同比增長，同時我們的有線專營權也繼續保持良好增長。我們本季的業績反映了 ADI 在 5G 領域更高的含量和份額。我們相信 5G 仍處於早期階段，我們的技術仍然是關鍵推動因素。正如文斯剛剛在他的部分中所強調的那樣，我們的有線業務處於有利位置，可以在未來幾年繼續實現盈利增長。

Our auto business represented 16% of sales and was relatively flat compared to the year ago quarter. Strength in BMS, which increased well over 20% year-over-year, and momentum in our power franchise helped to mitigate the overall weakness in vehicle units during the quarter. And lastly, our consumer business represented just 10% of sales in the quarter, the lowest consumer mix since 2016. As expected, this segment decreased on a year-over-year basis.

我們的汽車業務佔銷售額的 16%，與去年同期相比相對持平。BMS 的實力年增超過 20%，而我們的電力特許經營業務的勢頭有助於緩解本季度車輛單位的整體疲軟。最後，我們的消費者業務僅佔本季銷售額的 10%，這是自 2016 年以來的最低消費者組合。如預期，該細分市場較去年同期下降。

And now moving to the P&L. Revenue for the quarter was at the high end of our guidance at approximately $1.53 billion, down 2% year-over-year. Gross margin came in at 70.6%, up 30 basis points sequentially but lower year-over-year primarily due to market mix. And in what is normally a higher OpEx quarter, OpEx decreased sequentially to $443 million. Operating margin of 41.5% came in stronger than our guided midpoint.

現在轉向損益表。該季度的營收約為 15.3 億美元，處於我們指引的上限，年減 2%。毛利率為 70.6%，較上一季成長 30 個基點，但較去年同期下降，主要是由於市場混合所致。在通常營運支出較高的季度，營運支出較上季下降至 4.43 億美元。41.5% 的營業利潤率高於我們的指導中點。

Non-op expenses in the quarter were $61 million, slightly higher sequentially with the increase primarily related to a onetime expense in the quarter. Interest expense decreased quarter-over-quarter and year-over-year. Tax rate for the quarter was better than forecasted at approximately 11%. And all told, adjusted diluted earnings per share from the second quarter came in at the high end of guidance at $1.36.

本季的非營運費用為 6,100 萬美元，比上一季略有增加，成長主要與本季的一次性費用有關。利息支出環比和年減。該季度的稅率約為 11%，優於預期。總而言之，第二季調整後攤薄每股收益達到指引值的上限，為 1.36 美元。

Now moving on to the balance sheet. As is normal in the second quarter, inventory dollars and days increased slightly sequentially. And our channel inventory also increased sequentially and year-over-year but still remained comfortably in our target range. CapEx in the second quarter was $75 million or 5% of sales for the full year. We expect CapEx to be temporarily higher and remain at approximately 5%. This additional spend is to support future growth opportunities, especially for our power franchise as well as the colocation of our product and business development teams.

現在轉向資產負債表。與第二季的正常情況一樣，庫存金額和天數較上季略有增加。我們的通路庫存也環比和同比增加，但仍舒適地保持在我們的目標範圍內。第二季資本支出為 7,500 萬美元，佔全年銷售額的 5%。我們預計資本支出將暫時較高並維持在 5% 左右。這筆額外支出是為了支持未來的成長機會，特別是對於我們的電力特許經營以及我們的產品和業務開發團隊的託管。

Free cash flow was approximately $2.1 billion on a trailing 12-month basis, an increase of 6% year-over-year despite the additional CapEx outlay. Over the past 12 months, we have returned more than 100% of our free cash flow to shareholders through dividends and buybacks after debt repayments. In the second quarter, we repaid $250 million of debt, paid $200 million in dividends and repurchased over $100 million of our stock.

過去 12 個月的自由現金流約為 21 億美元，儘管資本支出有所增加，但仍年增 6%。在過去的12個月裡，我們透過股利和償還債務後的回購，將超過100%的自由現金流返還給股東。第二季度，我們償還了 2.5 億美元的債務，支付了 2 億美元的股息，並回購了超過 1 億美元的股票。

Now before moving to guidance, I want to give some context around the additional uncertainty impacting this quarter's outlook. As Vince mentioned, the U.S. government recently announced export restrictions to a large communications company. Our third quarter guidance takes into account the estimated impact on ADI from these restrictions, including no revenue from that customer for the remainder of the quarter.

現在，在轉向指導之前，我想先介紹一下影響本季前景的額外不確定性的背景情況。正如文斯所提到的，美國政府最近宣布對一家大型通訊公司實施出口限制。我們的第三季指引考慮了這些限制對 ADI 的估計影響，包括該客戶在本季度剩餘時間內沒有收入。

We are currently reviewing our ability to resume shipments under the recently announced temporary general license. And while we do not talk about specific customers, I will say that ADI has an extremely diverse business. The communications market is a bit more concentrated. But still over the trailing 12 months, our largest communication customers only represented mid-single digits or less as a percentage of total ADI sales.

我們目前正在審查根據最近宣布的臨時通用許可證恢復發貨的能力。雖然我們不談論特定客戶，但我想說 ADI 的業務極其多元化。通訊市場更加集中。但在過去 12 個月中，我們最大的通訊客戶僅佔 ADI 總銷售額的中位數或更少。

So now onto the outlook, which with the exception of revenue and non-op expense, are on a non-GAAP basis and excludes special items outlined in today's release. Third quarter revenue is expected to be $1.45 billion, plus or minus $50 million. And at the midpoint, we expect our B2B markets of industrial, automotive and communications in the aggregate to decrease low single digits year-over-year.

現在我們來看看展望，除收入和非營運費用外，展望均基於非公認會計原則，並且不包括今天發布的新聞稿中概述的特殊項目。第三季營收預計為 14.5 億美元，上下浮動 5,000 萬美元。在中期，我們預計工業、汽車和通訊等 B2B 市場整體將同比下降低個位數。

At the midpoint of guidance, we expect third quarter operating margin to be approximately 40.5%. Non-op expenses are expected to decline sequentially to approximately $56 million. And we are improving our projected tax rate to be in the range of 13% to 15% for the year. Based on these inputs, diluted EPS, excluding special items, is expected to be $1.22, plus or minus $0.07.

在指引中點，我們預計第三季營業利潤率約為 40.5%。非營運費用預計將連續下降至約 5,600 萬美元。我們正在將今年的預計稅率提高到 13% 至 15% 的範圍內。根據這些投入，不包括特殊項目的稀釋後每股收益預計為 1.22 美元，上下浮動 0.07 美元。

So overall, it was a very successful first half of the year for ADI, especially when you overlay it with an uncertain economic and political backdrop. I remain very confident that the investments we have made and continue to make will position us for continued outperformance over the long term.

總的來說，對於 ADI 來說，今年上半年非常成功，尤其是當你將其置於不確定的經濟和政治背景時。我仍然非常有信心，我們已經進行和繼續進行的投資將使我們能夠長期保持優異的業績。

Let me hand it back to Mike to start our Q&A.

讓我把它交還給麥克來開始我們的問答。

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

好的。讓我們進入問答環節。（操作員指示）Sheryl，我們可以問第一個問題嗎？

(Operator Instructions) And our first question comes from Tore Svanberg from Stifel, Nicolaus.

（操作員說明）我們的第一個問題來自 Stifel, Nicolaus 的 Tore Svanberg。

I was hoping maybe you could talk a little bit about your core business, excluding communications. So obviously, I know that's a very specific situation. But if you look at especially industrial and auto, are those markets starting to show a path of a recovery? So if you could add some color there, that would be great.

我希望您能談談您的核心業務（不包括通訊）。顯然，我知道這是一個非常具體的情況。但如果你特別關注工業和汽車市場，這些市場是否開始顯現出復甦之路？所以如果你能在那裡添加一些顏色，那就太好了。

Yes, sure. Thanks, Tore. Well, let me start with industrial. So I think it's true to say that business has stabilized across the board. We see our customers' inventory levels being very, very normal. And also channel inventory, which is often a proxy for what's going on in the industrial market, is in line also with our targets. I think overall, when the macro turns, I think we see a lot of upside improvement to the business as confidence improves and CapEx is deployed at higher rates.

是的，當然。謝謝，托雷。好吧，讓我從工業開始。所以我認為可以說業務已經全面穩定。我們看到客戶的庫存水準非常非常正常。此外，通路庫存（通常代表工業市場的情況）也符合我們的目標。我認為整體而言，當宏觀情勢發生轉變時，隨著信心的改善和資本支出的部署率更高，我們會看到業務出現很大的上行改善。

So if I try to unpack it a little bit for you, so in terms of the second quarter, it performed pretty much as we expected. And particularly, we were pleased with the results that we achieved in the aerospace and defense area, where the combination of the Hittite and ADI signal processing solutions are really coming to the fore there, where we're taking share as a company and we see that as a good steady growth driver for many, many years to come.

因此，如果我嘗試為您解開一點，那麼就第二季而言，它的表現與我們的預期相當。特別是，我們對在航空航天和國防領域取得的成果感到滿意，Hittite 和 ADI 信號處理解決方案的結合在這些領域真正脫穎而出，我們作為一家公司正在獲取份額，我們看到這將是未來很多年良好的穩定成長動力。

Geographically, I think it's true to say where a lot of our industrial business is centered at Europe and America, we're up year-on-year, fairly stable. And the areas of weakness we saw were largely in Asia, all the various major regions of Asia. So looking out a little bit here, we're seeing stabilization. And I think we will see some -- we'll see some annual growth in the third quarter here as well. So I think that's kind of the shape of the industrial business.

從地理位置來看，我認為確實可以說，我們的許多工業業務都集中在歐洲和美洲，我們的業績年增，相當穩定。我們看到的弱點主要集中在亞洲，亞洲的所有主要地區。因此，稍微留意一下，我們看到了穩定性。我認為我們會看到一些——我們也會在第三季看到一些年度成長。所以我認為這就是工業企業的形體。

If I just talk about the automotive sector for a little bit here. So our performance on revenue was much better than units, than SAAR. And we did see a very modest build in channel. As you know, we're on POA accounting these days when we report to The Street. And we did see a little bit of growth there. But the performance was driven by our growing position in battery management systems for electric vehicles. I think also I'm very pleased to say that our power business is improving across the board. We did better in power than SAAR, for example. So when we look at our performance, power did better than the unit growth in terms of vehicles sold.

我在這裡簡單談談汽車產業。所以我們的收入表現比單位、比 SAAR 好得多。我們確實看到了一個非常溫和的通路建設。如您所知，這些天我們向華爾街匯報時採用的是 POA 會計。我們確實看到了一點增長。但這一業績是由我們在電動車電池管理系統領域日益增長的地位所推動的。我想我也很高興地說我們的電力業務正在全面改善。例如，我們在電力方面比 SAAR 做得更好。因此，當我們審視我們的業績時，就銷售車輛而言，動力表現優於單位成長。

And also our A2B solutions in the infotainment sector continue to ramp gradually here. So I think if you look at more SAAR-exposed applications, steady-state applications, infotainment, for example, they were down high single digits. And that represented about 2/3 of the overall business. I think the portfolio is very balanced. We've got many new things coming onboard that help us to outgrow any particular weaknesses in SAAR.

我們在資訊娛樂領域的 A2B 解決方案也持續逐步發展。因此，我認為，如果你看看更多受 SAAR 影響的應用程式、穩態應用程式、資訊娛樂等，你會發現它們的下降幅度很高。這約佔整體業務的 2/3。我認為投資組合非常平衡。我們加入了許多新事物，幫助我們克服 SAAR 中的任何特定弱點。

Tore, I'll hit one point. You asked about kind of stabilization. We're already seeing stabilization in the industrial market. I think what we're excited about is it's kind of a better decline year-over-year we expect in the third quarter versus our second quarter results. So we declined about 6% in the second quarter. We think it gets better in the third quarter on a year-over-year basis. Do you have a follow-up?

托雷，我要打一分。您詢問了某種穩定性。我們已經看到工業市場趨於穩定。我認為我們感到興奮的是，與第二季的業績相比，我們預計第三季的同比下降會更好。所以我們第二季下降了約 6%。我們認為第三季的情況年比會有所好轉。你有後續行動嗎？

Yes. As a follow-up, if we look at the communication customer that we're talking about here, how long would it take for a company like ADI to maybe requalify some of that business with all their potential customers?

是的。作為後續行動，如果我們看看我們在這裡討論的通訊客戶，像 ADI 這樣的公司可能需要多長時間才能重新驗證其所有潛在客戶的部分業務資格？

Well, I think we're in a very, I would say, great situation here, Tore. We're very well covered as a company across all the various major OEMs with good penetration, in fact, historically high penetration across all the various OEMs. So I think I should start up the conversation by saying that generally speaking, 5G is a transcendental technology that has yet really to begin. I think we're seeing trials in Japan and Korea at this point in time but has really yet to begin in earnest in any volume. And that's probably going to come in the 2020 time frame. So no matter what happens in terms of puts and takes, carrier and OEM relationships, I think the company is well positioned.

嗯，我認為我們現在的處境非常好，托爾。作為一家公司，我們在所有各種主要原始設備製造商中都有很好的覆蓋，具有良好的滲透率，事實上，在所有各種原始設備製造商中的滲透率處於歷史最高水平。所以我認為我應該先說，一般來說，5G 是一項尚未真正開始的超凡技術。我認為目前我們正在日本和韓國進行試驗，但還沒有真正開始任何規模的試驗。這可能會在 2020 年的時間範圍內實現。因此，無論在投放和獲取、運營商和 OEM 關係方面發生什麼情況，我認為該公司都處於有利地位。

And specific to China, I guess it's a question of when deployments happen rather than if they happen. And we still have to navigate a lot of uncertainty here in terms of the trade ban. So we're going to know a lot more, I think, over the next 2, 3 months. But as I said, I think it's a case of when deployments happen globally rather than if. And we're in a good position in terms of the dollar content we've got in the various OEMs and our position across all the OEMs at this point in time.

具體到中國，我想這是一個何時部署的問題，而不是是否部署的問題。在貿易禁令方面，我們仍需要應對許多不確定性。所以我想，在接下來的兩三個月裡，我們將會了解更多。但正如我所說，我認為這是一個何時在全球範圍內部署的情況，而不是是否會發生的情況。就我們在各個原始設備製造商中獲得的美元含量以及我們目前在所有原始設備製造商中的地位而言，我們處於有利的地位。

Our next caller comes from Vivek Arya from Bank of America.

我們的下一個來電者來自美國銀行的 Vivek Arya。

And good job on maintaining the profitability despite all these macro and the Huawei headwinds. Vince, it's interesting that your comments on industrial sound somewhat more optimistic than some of your peers who have -- are looking at all this tariff situation and they are sounding somewhat more downbeat. Is it some company-specific product cycles? How are you sounding a little more optimistic than what we are hearing from some of your peers?

儘管存在這些宏觀和華為的不利因素，但在保持盈利能力方面做得很好。文斯，有趣的是，你對工業的評論聽起來比你的一些同行更樂觀，他們正在關注所有這些關稅情況，而他們聽起來更悲觀。是一些公司特定的產品週期嗎？您聽起來比我們從您的一些同行那裡聽到的要樂觀一些嗎？

Yes. It's a good question, Vivek. We, as a company, I think have been more focused than our peers in terms of R&D deployment and customer engagements over the last decade. And I think we are, generally speaking across the board, both at large, say, automation customers, tests and lab equipment-type companies and aerospace and defense, which I've talked a little bit about just a little earlier on, I think we are in a better share position now than we've ever been. It's a big, big part of who we are as a company.

是的。這是一個好問題，維維克。我認為，作為一家公司，我們在過去十年中比同行更專注於研發部署和客戶參與。我認為，一般來說，我們是廣大的自動化客戶、測試和實驗室設備類型的公司以及航空航天和國防公司，我想我之前已經談到過這一點我們現在的股票地位比以往任何時候都更好。這是我們公司的一個非常重要的組成部分。

So there's tremendous engagement and focus and with many, many tens of thousands of customers. So I think bringing LTC into the fold as well, we increased the strength of our franchise in terms of signal processing but also the power side of things with LT. So I think it's the combination of all those things that has positioned us. It's largely intrinsic or endogenous things we've done over the last decade position us to take share here. So I think it's the strength of our franchise, strength of our customer relationships and the combination with LTC at this point.

因此，有數以萬計的客戶的極大參與和關注。因此，我認為將 LTC 納入其中，我們不僅增強了我們在訊號處理方面的特許經營實力，而且還增強了 LT 的功率方面。所以我認為正是所有這些因素的結合決定了我們的定位。這在很大程度上是我們在過去十年中所做的內在或內生的事情，使我們能夠在這裡分享。所以我認為這是我們特許經營的優勢、客戶關係的優勢以及目前與 LTC 的合併。

Do you have a follow-up, Vivek?

維韋克，你有後續嗎？

Yes. So for the follow-up, I just wanted to make sure we are kind of all level set on what this ban to Huawei actually means, right. So let's assume that, that ban stays in place. Hopefully, it gets resolved. But for just the purpose of kind of recordkeeping, there is no more Huawei -- your July quarter kind of takes out Huawei. What is -- what should we assume from the following quarters? Should we just assume Huawei goes to 0 after that? What is the right way to kind of derisk the model from a Huawei perspective?

是的。因此，對於後續行動，我只是想確保我們對華為禁令的實際含義有所了解，對吧。因此，我們假設該禁令仍然有效。希望它能得到解決。但出於記錄保存的目的，不再有華為了——你的七月季度有點淘汰了華為。我們應該對接下來的幾季做出什麼假設？我們是否應該假設華為在那之後會變成0？從華為的角度來看，消除此模式風險的正確方法是什麼？

Sure. Yes. So for the current quarter, Q3, we've presumed no more shipments. And if you take -- I think your assumption is let's assume that, that ban stays in place, then it's likely that we would be prohibited from continuing to sell to that customer for subsequent quarters. But as Vince has mentioned several times, we are largely customer-agnostic. We have high share in all of the carriers. It's a very different situation than what we had in 4G. So as that demand shifts to other wireless infrastructure carriers, depending on where that deployment happens, we expect to continue to do quite well in providing the necessary technology to enable the deployment of 5G and the continuing deployment and growth of 4G.

當然。是的。因此，對於當前季度（即第三季度），我們假設不會再發貨。如果你認為——我認為你的假設是，讓我們假設該禁令仍然存在，那麼我們很可能會被禁止在接下來的幾個季度繼續向該客戶銷售產品。但正如文斯多次提到的，我們在很大程度上與客戶無關。我們在所有營運商中佔有很高的份額。這與 4G 時代的情況截然不同。因此，隨著這種需求轉移到其他無線基礎設施營運商（取決於部署地點），我們預計將繼續在提供必要的技術以實現 5G 部署以及 4G 的持續部署和成長方面表現出色。

Our next question comes from Harsh Kumar from Piper Jaffray.

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

I want to echo my congratulations as well, fantastic job in this rather turbulent environment. I want to follow up on the Vivek's question. Last time we saw this, the song and dance was ZTE getting banned and the expectation was that Huawei would step up and take share. So basically, if I hear you correctly, what I think you're saying is that the customer in question, Huawei, if that's banned, you are suggesting that others, including ZTE, might step up and take share and the impact would be much less than perhaps the direct business that you do with Huawei. Is that the correct way to think about it?

我也想表達我的祝賀，在這個相當動盪的環境中，我的工作非常出色。我想跟進維韋克的問題。上次我們看到這個，歌舞是中興通訊被封鎖，期待華為站出來分一杯羹。所以基本上，如果我沒聽錯的話，我認為你的意思是，相關客戶華為，如果被禁止，你是在建議其他人，包括中興通訊，可能會站出來分享份額，影響會很大也許比你與華為做的直接業務少。這是正確的思考方式嗎？

Potentially, yes. I think it really depends now on how the Chinese government and the various carriers, when they reflect on things, how they decide to handle the timing of 5G release at this point in time. But there are options. I think 5G conforms to a standard. And I think all the carriers have different options. They probably have favorites. They've got the first favorite, the second favorite. But there are options. And the way we view it, we are well positioned in terms of our technology portfolio.

有可能，是的。我認為現在這實際上取決於中國政府和各個運營商在反思的時候，如何決定在這個時間點上如何處理5G發布的時機。但還有一些選擇。我認為5G符合一個標準。我認為所有運營商都有不同的選擇。他們可能有最喜歡的。他們有第一熱門，第二熱門。但還有一些選擇。從我們的角度來看，我們在技術組合方面處於有利地位。

In fact, many of the things we're doing, particularly in 5G, are highly differentiated, with more content, more coverage in the radio systems than we've ever had. So look, it will certainly help a lot if this trade -- this ban is lifted in a reasonable time period here. But I think irrespective, as I said in my earlier comments, the rollout of 5G is unquestionable. And it will really be a question of timing rather than if the system gets deployed. So yes.

事實上，我們正​​在做的許多事情，特別是在 5G 領域，都是高度差異化的，內容更多，無線電系統的覆蓋範圍比我們以往任何時候都多。所以看，如果這項交易——這項禁令在合理的時間內取消，這肯定會很有幫助。但我認為無論如何，正如我在之前的評論中所說，5G 的推出是毫無疑問的。這實際上是一個時間問題，而不是系統是否部署的問題。所以是的。

Yes. Harsh, so just to, I'll say, unpack a little bit from kind of a numbers standpoint. The things we looked at when we put together our guidance was there's 3 factors. One was the actual shipments to that customer; two were the secondary impact to other customers who ship to that customer; and third would be additional demand picked up by competitors on that customer. And we put all that together, that's how we came up with our guidance. And we kind of think the second, too, so the secondary impact or the additional share impact kind of neutralize to 0. So really, it's all about that customer going to 0 in our outlook.

是的。嚴格來說，我想說，只是從數字的角度來解釋。當我們整理我們的指導時，我們考慮了三個因素。一是實際出貨給該客戶的情況；二是向該客戶出貨的情況。二是對向該客戶出貨的其他客戶的二次影響；第三是競爭對手對該客戶的額外需求。我們將所有這些放在一起，這就是我們提出指導的方式。我們也認為是第二個，因此次要影響或額外份額影響會中和為 0。實際上，這一切都是關於客戶在我們的前景中變為 0。

Fair enough. Very helpful. And then for my follow-up, we've been trying to talk to other semiconductor companies. And they're all very confused because of just -- it happened -- it all happened so recently. A lot of the companies are saying, well, they sell directly to Huawei, but they also sell a whole bunch through distri. Would you tell us if you guys are prohibited from selling through distri to Huawei as well? Or is there a chance that stuff could -- shipments could be moved around a little bit and perhaps -- I'm not saying the full impact is mitigated, but some partial impact is mitigated at this point?

很公平。很有幫助。然後，對於我的後續行動，我們一直在嘗試與其他半導體公司交談。他們都很困惑，因為這一切都發生在最近。很多公司都說，他們直接向華為銷售，但他們也透過經銷商銷售一大堆產品。您能告訴我們是否也禁止你們透過經銷商向華為銷售產品嗎？或者是否有可能——發貨量可能會稍微移動，也許——我並不是說全部影響得到緩解，但目前某些部分影響得到了緩解？

No, I'd say, look, we're as confused as everybody. The information flow is burst-y and it can be often confusing. So I think the coming days, the coming weeks will bring a lot more clarity to what's actually in the ban and what's out of the ban. But as Mike said very clearly right now, our interpretation is that we will be upholding the ban to the fullest extent and we won't be shipping anything to Huawei for the foreseeable future.

不，我想說，看，我們和每個人一樣困惑。資訊流是突發性的，而且常常令人困惑。因此，我認為未來幾天、未來幾週將會更清楚地說明禁令中的實際內容和禁令以外的內容。但正如麥克現在非常明確地說的那樣，我們的解釋是，我們將最大限度地維持禁令，並且在可預見的未來，我們不會向華為運送任何東西。

And for the avoidance of doubt, we have no channel revenue in the midpoint of our guidance that we expect to go on to this communications customer.

為避免疑義，我們在我們的指導中沒有通路收入，我們預計將繼續向該通訊客戶提供通路收入。

Our next question comes from Harlan Sur from JP Morgan.

我們的下一個問題來自摩根大通的 Harlan Sur。

The defense spending budget for this year has been a real tailwind for the team. And it's actually been quite broad-based, right, modernization, aircraft, ground systems, missile defense and so on. A&D obviously has been doing well for the team. Can you just help us understand how A&D has been growing on a year-over-year basis? And then how has the budget focus on modernization helped to kick off maybe some new potential initiatives for the team?

今年的國防支出預算對球隊來說是一個真正的推動力。事實上，它的基礎相當廣泛，對吧，現代化、飛機、地面系統、飛彈防禦等等。A&D 顯然為團隊做得很好。您能否幫助我們了解 A&D 的逐年成長？那麼，對現代化的預算重點如何幫助為團隊啟動一些新的潛在舉措？

Yes. Harlan, we don't talk much at the specific segment level in terms of numbers. But I will share that our aerospace and defense has been doing particularly well. And it was one of the items that helped us offset some of the decline we saw in other industrial. The overall -- sort of in the second quarter results, that year-over-year growth was pretty substantial, I call it north of 25% on a year-over-year basis for aerospace.

是的。Harlan，我們在具體細分市場的數字方面並沒有過多談論。但我要分享的是，我們的航空航太和國防一直做得特別好。這是幫助我們抵消其他工業部門下滑的項目之一。總體而言，在第二季度的業績中，同比增長相當可觀，我稱之為航空航天業同比增長超過 25%。

We are benefiting from those record military budgets that you've meant. So it's across all of our application areas, the communications, the UAVs, radars, space exploration areas. The combination with Hittite also helped bring a lot of new technologies that we can take advantage. So it's been a great business for us. And we see that continued modernization of defense is going to pay dividends in growth for ADI for several quarters to come.

我們正從你所說的那些創紀錄的軍事預算中受益。因此它涵蓋了我們所有的應用領域，通訊、無人機、雷達、太空探索領域。與赫梯的結合也帶來了許多我們可以利用的新技術。所以這對我們來說是一筆很棒的生意。我們看到，持續的國防現代化將為 ADI 未來幾季的成長帶來紅利。

Yes. And just to level set on the call, our industrial business is 50% of sales, but it's very diverse within that 50%. So I'll just remind everyone that aerospace and defense is about 20% of industrial, automation is about 20% of industrial, instrumentation is about 20% to 25%, health care is just above 10% and then there's a remainder across a bunch of, I'll call it, smaller customers. So it's a very diverse business within industrial for us. Do you have a follow-up, Harlan?

是的。就電話會議上設定的水平而言，我們的工業業務佔銷售額的 50%，但這 50% 內的業務非常多樣化。所以我只想提醒大家，航空航太和國防約佔工業的 20%，自動化約佔工業的 20%，儀器儀表約佔 20% 到 25%，醫療保健略高於 10%，然後還有其他一些領域我稱之為小客戶。因此，對我們來說，這是工業領域非常多元化的業務。哈倫，你有後續嗎？

Yes. I appreciate the insights. So within the comms business, really appreciate the insights on some of the new opportunities in optical, especially around signal processing and control. I believe that within wireline though over the past couple of quarters, you've seen some weakness in 100 gig for optical networking targeted at cloud data centers on the well-known sort of capacity digestion by the hyperscalers. Are you guys starting to see fundamentals in 100 gig starting to improve kind of near term?

是的。我很欣賞這些見解。因此，在通訊業務中，真正欣賞光學領域一些新機會的見解，尤其是在訊號處理和控制方面。我相信，在過去的幾個季度中，在有線網路中，您已經看到了針對雲端資料中心的 100 GB 光纖網路的一些弱點，這是超大規模企業眾所周知的容量消化方式。你們是否開始看到 100 場演出的基本面在短期內開始有所改善？

Yes. And our wireline business had been growing. In the last quarter, it grew mid-single digits year-over-year. And the quarter before that was about 10% year-over-year. So I think it is impacting some. Our wireline business has been a quite steady growth market for us. It's been overshadowed by the wireless, I'll say, actually growing much faster. But the wireline for us and optical within that has been growing.

是的。我們的有線業務一直在成長。上個季度，它同比增長了中個位數。上一季較去年同期成長約 10%。所以我認為這正在影響一些人。我們的有線業務對我們來說一直是個相當穩定成長的市場。我想說的是，它的光芒已經被無線技術所掩蓋，而無線技術實際上成長得更快。但我們的有線線路和光纖線路一直在成長。

Yes. I think data centers today still largely 100 gig-based. But the fastest growth we're experiencing is in 400 gig. And that's both the kind of the metro long-haul as well as data centers. So as this data need continues to double every 2.5 years, we're going to continue to see an aggressive move into 400 gig, and in fact, to 1 terabit and beyond over the coming few years here. So I think it's a mixture. And we're seeing strength across the board in our portfolio.

是的。我認為今天的資料中心仍然主要以 100G 為基礎。但我們經歷的最快成長是 400 演出。這既是地鐵長途線路的類型，也是資料中心的類型。因此，隨著資料需求每 2.5 年繼續翻一番，我們將繼續看到資料量在未來幾年積極向 400 GB 邁進，事實上，會達到 1 太比特甚至更高。所以我認為這是一個混合物。我們在我們的投資組合中看到了全面的優勢。

And our next question comes from Ross Seymore from Deutsche Bank.

我們的下一個問題來自德意志銀行的羅斯·西莫爾。

First, congratulations on the automotive business being flat year-over-year. It's a solid quarter by any measure. I know, Vince, you gave the color on some of those drivers with BMS, et cetera. But from a bigger-picture perspective, you guys had been underperforming for a few years. And now you're outperforming. Is this a sign of an inflection point that you think like going forward, you can go back to at least performing in line with peers or even outperforming? Or do you view this as just kind of 1 quarter of improvement in that regard?

首先，恭喜汽車業務與去年同期持平。無論以何種標準衡量，這都是一個穩健的季度。我知道，Vince，您用 BMS 等為一些驅動程式提供了顏色。但從更大的角度來看，你們這些年表現不佳。現在你表現出色。這是否是一個拐點的跡象，您認為繼續前進，您可以回到至少與同行保持一致甚至超越的水平？或者您認為這只是這方面的四分之一的改進？

So Ross, let me level set how we did in the first half, and then let Vince kind of talk more broadly. So first, remember that we run our business on a -- we run the channel really on a POS basis, but we report our revenue on a POA basis. So in the second quarter, POS was down just slightly, very low single digits, but much better versus units. So we did see a little bit of modest build in the channel. And that helped growth. But within that, certainly very strong performance in BMS, power and A2B. Vince mentioned that we've got the cabin electronics and some other businesses exposed to SAAR.

羅斯，讓我先說明我們上半場的表現，然後讓文斯進行更廣泛的討論。首先，請記住，我們的業務是在 POS 的基礎上運作的，但我們是在 POA 的基礎上報告收入的。因此，在第二季度，POS 略有下降，非常低的個位數，但與單位相比要好得多。所以我們確實在頻道中看到了一些適度的建設。這有助於增長。但其中，BMS、電源和 A2B 方面的表現肯定非常強勁。Vince 提到我們的機艙電子設備和其他一些業務都受到 SAAR 的影響。

So as we look forward to the second half of this year, a little bit of that channel build that we saw in the first half is probably going to provide some headwind because again we do manage the business on a POS basis. But the optimism that we have been talking about for over a year now and the inflection in our auto business that we really expect to start in 2020, that remains a high conviction. And I'll let Vince maybe talk more about what's behind that.

因此，當我們展望今年下半年時，我們在上半年看到的一些通路建設可能會帶來一些阻力，因為我們再次在 POS 的基礎上管理業務。但我們一年多以來一直在談論的樂觀情緒以及我們真正期望在 2020 年開始的汽車業務的拐點，仍然是一個高度的信念。我會讓文斯多談論這背後的原因。

Ross, if we go back several years, we withdrew R&D and support. We still ship some sensor products. But we've largely seen the, I think, the tailing off of some of our more commoditized MEMS sensing business begin to stabilize there. If I look at the areas where we're seeing the growth come from as a company, I think our infotainment business remains very, very strong. It's been growing year-on-year now for several. BMS, still a very, very small penetration of electric vehicles in overall SAAR. And by the month, we get more and more convinced that, that's going to be a very significant business for the company. And that's -- that business is doing better and better for us. In fact, we have been capitalizing that business as well. We -- in comparison, if you'd like, the portfolio from LTC, so we've been capitalizing the business in terms of R&D and equipment to make sure that we can meet the upside demand here for new products as well as supply line for the long term.

羅斯，如果我們回到幾年前，我們就撤回了研發和支援。我們仍然發貨一些感測器產品。但我認為，我們在很大程度上已經看到，我們一些更商品化的 MEMS 感測業務的萎縮開始穩定下來。如果我看看我們作為一家公司看到成長的領域，我認為我們的資訊娛樂業務仍然非常非常強勁。現在有幾個逐年增長。BMS 在整個 SAAR 中電動車的滲透率仍然非常非常小。到了這個月，我們越來越相信，這對公司來說將是一項非常重要的業務。那就是——業務對我們來說越來越好。事實上，我們也一直在利用這項業務。相比之下，如果你願意的話，我們可以選擇 LTC 的產品組合，因此我們一直在研發和設備方面利用業務資本化，以確保我們能夠滿足這裡對新產品和供應線的上行需求從長遠來看。

I mentioned a little bit earlier on as well that our power business, the LT portfolio is doing increasingly better when compared to the market at large. And when you take these new, emerging Level 3, Level 4 sensing systems that need, call it, modalities like IMUs, that need these advanced image quality radar systems and LIDAR, we are in virtually all the really important high-end solutions that are emerging at Level 3 and above. So I think our business has been largely the -- the headwind on our business from the sensor side of things is abating. And these new product modalities are getting stronger and stronger in terms of traction. So that's kind of the story in automotive for you.

我之前也提到過，與整個市場相比，我們的電力業務 LT 產品組合的表現越來越好。當您採用這些新興的 3 級、4 級感測系統時，它們需要 IMU 等模式，需要這些先進的圖像質量雷達系統和光達，我們幾乎處於所有真正重要的高端解決方案中出現在3 級及以上。因此，我認為我們的業務在很大程度上是——來自感測器方面的業務阻力正在減弱。而這些新的產品形態的吸引力也越來越強。這就是汽車產業的故事。

Do you have a follow-up, Ross?

羅斯，你有後續嗎？

Yes. I just wanted to pivot back to the comms side of things and appreciating all the uncertainty and the details you've given on the call thus far. One other aspect that investors are focused on is the inventory in that area. And I know it's difficult to discern. But how are you viewing any prebuying that might have been occurring specifically from the now-banned customer? And I think what people are concerned about is even if the ban ends, was there enough prebuying buffer that the snapback afterwards might not actually occur? So any color you could have on the inventory in that channel and specifically any prebuying would be appreciated.

是的。我只是想回到通信方面，並感謝您迄今為止在電話會議中提供的所有不確定性和細節。投資者關注的另一個方面是該地區的庫存。我知道這很難辨別。但是，您如何看待可能專門來自現已被禁止的客戶的任何預購買？我認為人們關心的是，即使禁令結束，是否有足夠的預購緩衝，以至於之後的快速恢復可能不會真正發生？因此，您可以在該頻道的庫存中擁有任何顏色，特別是任何預購，我們將不勝感激。

I think the inventory in general, Ross, across the board, all are OEMs in the communications area, these new advanced architectures. I think the inventory is very, very well balanced. I don't see anything untoward or anomalous. And I think things are in good balance there.

我認為羅斯的庫存總體來說都是通訊領域的原始設備製造商，這些新的先進架構。我認為庫存非常非常平衡。我沒有看到任何不愉快或異常的地方。我認為那裡的情況處於良好的平衡狀態。

Yes, Ross. I'll say even before the ban came in place, we expect our communications business -- we thought before that ban was going to grow sequentially. So I don't think prebuying was a big worry of ours, given our good share across the board. Now that obviously has changed. And we think it's not going to grow sequentially. And probably on a year-over-year basis, it's only up slightly. Kind of help you for some context there.

是的，羅斯。我想說，甚至在禁令實施之前，我們就預期我們的通訊業務會持續成長——在禁令實施之前我們就認為我們的通訊業務會持續成長。因此，鑑於我們在各方面的份額都不錯，我認為預購並不是我們的一大擔憂。現在情況顯然已經改變了。我們認為它不會連續成長。與去年同期相比，這一數字可能僅略有上升。可以幫助您了解一些背景資訊。

Yes. I think the way to think about this as well in terms of inventory balance, like most of ADI's portfolio, it's really more a question of when the inventories that we have sell rather than if. I think that's generic to all these core B2B businesses for ADI.

是的。我認為從庫存平衡的角度來考慮這個問題，就像 ADI 的大多數投資組合一樣，這實際上更多的是我們何時出售庫存的問題，而不是是否出售的問題。我認為這對 ADI 的所有核心 B2B 業務來說都是通用的。

Our next question is from William Stein from SunTrust.

我們的下一個問題來自 SunTrust 的 William Stein。

First, I'm wondering if you've analyzed or if there's any impact we might expect from additional stop ship orders that have been speculated in the press. For example, I think it's pronounced HikVision. I might not be getting that right. But I'm wondering if you have an exposure to these surveillance companies in China that look like they could potentially be customers.

首先，我想知道您是否分析過，或者我們預期媒體猜測的額外停船訂單是否會產生任何影響。例如，我認為它的發音是 HikVision。我可能沒搞清楚。但我想知道您是否接觸過中國的這些監控公司，它們看起來可能是潛在客戶。

Well, it's a good question. I would emphasize that the rest of the ADI business is very broad and diverse. So as more companies may be identified, there will certainly be some analysis that we will have to do. But unlike the communications business, which is among our most concentrated, the diversity of our franchise and the large number of customers that we sell to provide great insulation against having kind of macro shocks from these political impacts.

嗯，這是一個好問題。我想強調的是，ADI 的其他業務非常廣泛且多樣化。因此，隨著更多的公司被識別出來，我們肯定需要進行一些分析。但與我們最集中的通訊業務不同的是，我們特許經營的多樣性和我們銷售的大量客戶可以很好地抵禦這些政治影響所帶來的宏觀衝擊。

That's really helpful. One more if I can. Can you talk about both for the quarter, juxtapose it in for the guidance, the trends within the consumer business and specifically the split between your traditional prosumer business and the more volatile handset part of the business?

這真的很有幫助。如果可以的話，再來一張。您能否談談本季的這兩個方面，並將其與消費者業務的指導、趨勢，特別是傳統的產消者業務和業務中波動性較大的手機部分之間的劃分結合起來？

Yes. So we've -- we originally said the -- that consumer is going to be down 10% to 20% in 2019. Our forecast is really now at the high end of that. We expect to be down 20% year-over-year. We continue to see some weakness in the portables market. We are seeing a little bit of unanticipated weakness in prosumer. And how much of that is driven by the macro environments and such, we're trying to assess right now. But we do think that kind of the worst is behind us and that the long-term growth for the prosumer business should really align closer to GDP. And it's really similar to our B2B business.

是的。所以我們——我們最初說過——2019 年消費者數量將下降 10% 到 20%。我們的預測現在確實處於最高水平。我們預計將年減 20%。我們繼續看到便攜式市場的一些疲軟。我們看到產消者出現了一些意想不到的弱點。其中有多少是由宏觀環境等驅動的，我們現在正在嘗試評估。但我們確實認為最糟糕的情況已經過去，產消者業務的長期成長應該真正與 GDP 更接近。這與我們的 B2B 業務非常相似。

Yes. From a standpoint, as we exit this year, we expect our portables business and our prosumer business to be about equal in size, so that should provide some more stability to that consumer business for us going forward.

是的。從角度來看，當我們今年退出時，我們預計我們的便攜式業務和我們的專業消費者業務的規模大致相同，因此這應該為我們未來的消費業務提供更多的穩定性。

Our last question comes from Ambrish Srivastava from BMO.

我們的最後一個問題來自 BMO 的 Ambrish Srivastava。

I just wanted to make sure I understood the exposure to the large customer and in terms of the model, Prashanth. Should we be then thinking -- you gave us a trailing 12-month number. But should we be thinking high single digit? And then based on your answer to an earlier question in terms of derisking the model, should we assume for the next 2, 3 quarters, you get none of that and then you start to -- other customers to pick up slack maybe 2, 3 quarters down the road? Is that the right way to think about the model and then the OpEx impact as well?

我只是想確保我了解大客戶的曝光度以及模型，Prashanth。我們是否應該思考—您給了我們一個過去 12 個月的數字。但我們應該考慮高個位數嗎？然後根據您對先前關於消除模型風險的問題的回答，我們是否應該假設在接下來的2、3 個季度中，您什麼也得不到，然後您開始- 其他客戶可能會填補2、3 個季度的空缺路邊的宿舍？這是考慮模型以及營運支出影響的正確方法嗎？

Ambrish, I'll answer the first part of your question. So I think we were pretty clear on the prepared remarks saying our largest customers within comms was mid-single digit at most in the trailing 12 months. We did have a couple weeks of shipments, I would say, in this quarter. So that won't repeat next quarter. And after that doesn't repeat in 3Q, I would put 0 in going forward until the ban is lifted.

安布里什，我將回答你問題的第一部分。因此，我認為我們在準備好的評論中非常明確，即在過去 12 個月內，我們在通訊領域的最大客戶最多為中個位數。我想說，本季我們確實有幾週的出貨量。所以下個季度不會再出現這種情況。之後，在第三季不再重複這種情況，我會將 0 放在前進中，直到禁令解除。

And the OpEx trajectory, how should we think about the OpEx?

那麼OpEx的軌跡，我們該如何看待OpEx？

Look, the OpEx is -- we're going to continue to invest in the business. Of course, where appropriate, we're going to look at our discretionary cost. But I wouldn't make a meaningful change to how we think about the OpEx. The first lever that absorbs the chock of our revenue decline is our variable compensation. So that will, of course, be impacted by decline in revenue. But beyond that, we're going to -- we're committed to investing today for products and technologies that come to market several years out.

看，營運支出是－我們將繼續投資於該業務。當然，在適當的情況下，我們會考慮可自由支配的成本。但我不會對我們對營運支出的看法做出有意義的改變。吸收我們收入下降的第一個槓桿是我們的可變薪酬。因此，這當然會受到收入下降的影響。但除此之外，我們將致力於今天投資幾年後上市的產品和技術。

I think the way to look at it, Ambrish, is that the demand for our technologies is absolutely unprecedented. So we're keeping our eye on the long term in terms of making sure that we have aggressive funding in place to fund all the R&D programs that we think are critical to the company's future, the same with our customer engagements. And I mentioned a little while ago also, we ramped our capital expenditures to make sure, particularly on the LT side of the business, that we have what we need to get our products to market faster and get the supply to our customers, that we know the opportunity is there, so we're keeping our eye on the long-term prize here.

安布里什，我認為看待這個問題的方式是，對我們科技的需求絕對是前所未有的。因此，我們著眼於長期，確保我們擁有積極的資金，為我們認為對公司未來至關重要的所有研發項目提供資金，我們的客戶參與也是如此。我不久前也提到過，我們增加了資本支出，以確保，特別是在業務的 LT 方面，我們擁有將產品更快推向市場並向客戶供貨所需的資源，我們知道機會就在在那裡，所以我們會密切關注這裡的長期回報。

Do you have a follow-up, Ambrish?

安布里什，你有後續嗎？

I do. Just a quick one then. In your B2B guide, I think, Vince, you mentioned -- you gave the color on the industrial. And then should auto -- we should expect that to be up year-over-year in the current quarter that we are in?

我願意。那就快點吧。在你的 B2B 指南中，我想，Vince，你提到過——你賦予了工業色彩。那麼，汽車行業是否應該——我們應該預期在我們所處的當前季度會同比增長？

Yes, Ambrish, yes. Vince gave some comments. Industrial actually should be down year-over-year, but the growth will be better than the second quarter is how to think about industrial first off. Auto also, I would say, probably down year-over-year but much better than what I would say units are doing out there to the thing we talked about in the other Q&A remarks, BMS and power and A2B ramping. And communications, we also discussed it should be about, I would say, flat to up slightly year-over-year. So that should kind of help you get to that low single-digit guide for B2B as a combination.

是的，安布里什，是的。文斯發表了一些評論。工業實際上應該同比下降，但成長將好於第二季度，這是如何首先考慮工業的。我想說，汽車也可能同比下降，但比我所說的單位在其他問答評論中談到的事情要好得多，BMS 和電力以及 A2B 的提升。在通訊方面，我們也討論了，我想說，它應該是同比持平或略有上升。因此，這應該可以幫助您獲得 B2B 組合的低個位數指南。

With that, thank you, Ambrish, and thank you, everyone, for joining us this morning. A copy of the transcript will be available on our website. And all available reconciliations will also be on the website. Thank you, and we'll talk to you guys soon.

在此，謝謝安布里什，也謝謝大家今天早上加入我們。我們的網站上將提供成績單副本。所有可用的對帳也將顯示在網站上。謝謝你們，我們很快就會和你們談談。

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。