亞德諾半導體 (ADI) 2020 Q3 法說會逐字稿

Good morning, and welcome to the Analog Devices Third Quarter Fiscal Year 2020 Earnings Conference Call, which is being audio webcast via telephone and over the web.

早安，歡迎參加 Analog Devices 2020 財年第三季財報電話會議，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, Senior 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，投資者關係高級總監 Michael Lucarelli 先生。先生，地板是你的了。

Thank you, Cheryl, and good morning, everybody. Thanks for joining our third quarter fiscal 2020 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 2020 財年第三季電話會議。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 includes forward-looking statements including statements relating to our objectives, outlook and the proposed Maxim transaction. These forward-looking statements are subject to certain risks and uncertainties, as further described in our earnings release, our most recent 10-Q and other periodic reports and materials filed with the SEC. Actual results could differ materially from the forward-looking information as these statements reflect our expectations only as of the date of this call, and we undertake no obligation to update these statements, except as required by law.

現在開始披露。我們將要討論的資訊包括前瞻性陳述，其中包括與我們的目標、前景和擬議的 Maxim 交易有關的陳述。這些前瞻性陳述受到某些風險和不確定性的影響，正如我們的收益報告、最近的 10 季報告以及向 SEC 提交的其他定期報告和資料中進一步描述的那樣。實際結果可能與前瞻性資訊有重大差異，因為這些陳述僅反映我們截至本次電話會議之日的預期，並且我們不承擔更新這些陳述的義務，除非法律要求。

Our comments today will also include non-GAAP financial measures, which exclude special items. Comparing our results to historical performance, special items are also excluded from prior periods. 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.

我們今天的評論還將包括非公認會計準則財務指標，其中不包括特殊項目。將我們的結果與歷史績效進行比較，特殊項目也被排除在前期之外。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。

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

接下來，我會將其交給 ADI 執行長 Vincent Roche。文斯？

Thanks very much, Mike, and good morning to you all. I hope that you and your families are healthy and safe at this time.

非常感謝，麥克，祝大家早安。我希望您和您的家人此時健康安全。

So I'll start my remarks today on our quarterly results and the current operating environment before providing you with an update on our priorities. This includes additional insight, of course, into our recently announced acquisition of Maxim Integrated.

因此，今天我將首先介紹我們的季度業績和當前的營運環境，然後再向您介紹我們的優先事項的最新情況。當然，這包括對我們最近宣布收購 Maxim Integrated 的更多見解。

ADI executed exceptionally well in the third quarter despite the highly uncertain environment. Demand was resilient, surpassing our expectations, leading to stronger-than-expected results. We saw continued strength in communications across both wireless and wireline applications, health care saw record demand and other parts of our industrial portfolio such as instrumentation tests also performed well. Unsurprisingly, the main area of weakness was automotive, driven by global factory shutdowns and lower vehicle sales.

儘管環境高度不確定，ADI 在第三季的表現卻異常出色。需求富有彈性，超出了我們的預期，導致業績強於預期。我們看到無線和有線應用的通訊持續強勁，醫療保健的需求創歷史新高，我們工業產品組合的其他部分（例如儀器測試）也表現良好。不出所料，受全球工廠關閉和汽車銷量下降的推動，汽車產業是主要疲軟領域。

Turning to supply. We're operating at normal capacity, which helped us clear backlog and bring supply and demand into a better balance. Our team delivered third quarter results above the midpoint of our revised guide with revenue at $1.46 billion and EPS at $1.36. B2B revenue was flat year-over-year and increased 11% sequentially, and both gross and operating margins returned within the range of our financial model at 70% and 42%, respectively. We also generated $1.8 billion of free cash flow or 33% of revenue over the trailing 12 months. This continues to place ADI in the top 10% of the S&P 500. These results further underscore the strength and flexibility of our business model against any economic backdrop, and I'm proud of how the ADI team continues to deliver for our customers.

轉向供應。我們正在以正常產能運營，這有助於我們清理積壓訂單並使供需更好地平衡。我們團隊的第三季業績高於修訂後指南的中點，營收為 14.6 億美元，每股收益為 1.36 美元。 B2B 營收年增 11%，毛利率和營業利益率分別恢復到 70% 和 42% 的財務模型範圍內。我們也產生了 18 億美元的自由現金流，佔過去 12 個月收入的 33%。這使 ADI 繼續躋身標準普爾 500 強前 10% 之列。這些結果進一步凸顯了我們業務模式在任何經濟背景下的優勢和靈活性，我對 ADI 團隊繼續為客戶提供服務的方式感到自豪。

Now I'll turn to an update on our strategic priorities. We're focused on spending our capital efficiently, and the first call is funding new product development. During the quarter, we invested approximately $260 million in R&D, with more than 95% targeted at the most attractive B2B opportunities. This continued reinvestment in our business is leading to excellent customer engagements, and let me provide you now with a couple of examples.

現在我將介紹我們戰略重點的最新情況。我們專注於有效地利用我們的資本，第一個呼籲就是為新產品開發提供資金。本季度，我們在研發方面投入了約 2.6 億美元，其中 95% 以上針對最具吸引力的 B2B 機會。對我們業務的持續再投資帶來了出色的客戶參與度，現在讓我為您提供幾個例子。

In our communications business, we announced the collaboration with Intel to create a flexible radio platform that will enable customers to scale their 5G networks more quickly and more economically. The high-performance O-RAN compliant solution leverages our market-leading software-defined transceiver technologies. This positions ADI to expand our market leadership.

在我們的通訊業務中，我們宣布與英特爾合作創建一個靈活的無線電平台，使客戶能夠更快、更經濟地擴展其 5G 網路。符合 O-RAN 標準的高效能解決方案利用了我們領先市場的軟體定義收發器技術。這使得 ADI 能夠擴大我們的市場領導地位。

In automotive, our new road noise canceling solution is gaining traction. Since announcing our initial win with Hyundai in February, we've added 5 more customers, including the North American leader in electric vehicles. This innovative solution reduces the car weight by almost 100 pounds and energy requirements by about 3%, while potentially doubling our content opportunity per vehicle. We're seeing great design momentum across our diversified industrial market also. For example, in factory automation, customers are rethinking supply chains to make them more flexible with faster response times. And to quicken the pace of adoption, we have formed an alliance of partners to develop an open source architecture. I'm excited to announce a Fortune 500 health care customer is teaming with ADI to help upgrade its manufacturing capabilities using more connected robotics, thereby doubling our addressable market.

在汽車領域，我們的新型道路降噪解決方案正在獲得關注。自 2 月宣布首次贏得現代汽車以來，我們又增加了 5 個客戶，其中包括北美電動車領域的領導者。這項創新解決方案將汽車重量減少了近 100 磅，能源需求減少了約 3%，同時可能使每輛車的內容機會增加一倍。我們在多元化的工業市場中也看到了巨大的設計動能。例如，在工廠自動化中，客戶正在重新考慮供應鏈，使其更加靈活，且反應時間更快。為了加快採用的步伐，我們組成了合作夥伴聯盟來開發開源架構。我很高興地宣布，財富 500 強醫療保健客戶正在與 ADI 合作，利用更多互聯機器人技術來幫助升級其製造能力，從而將我們的目標市場擴大一倍。

And in space, we have design wins going into production this year with traditional aerospace companies and new emerging disruptors that enable the proliferation of next-generation communication satellites. These satellites continuously change their position to earth and require space grade phased array and beam forming technology to create an uninterrupted connection. And we're using this strong position in RF to attach power technologies, thereby increasing our addressable market by 1/3.

在太空領域，我們今年與傳統航空航太公司和新興顛覆者所取得的設計成果將投入生產，從而促進下一代通訊衛星的擴散。這些衛星不斷改變其相對地球的位置，需要空間級相控陣和波束形成技術來創造不間斷的連結。我們正在利用射頻領域的強大地位來附加電源技術，從而將我們的潛在市場增加 1/3。

ADI also remains committed to strong shareholder returns. This quarter, we returned approximately $230 million through dividends. Recall that we paused share buybacks due to the pandemic. This has helped us further solidify our balance sheet with a cash balance of more than $1 billion.

ADI 也始終致力於實現豐厚的股東回報。本季度，我們透過股息返還了約 2.3 億美元。回想一下，由於大流行，我們暫停了股票回購。這幫助我們進一步鞏固了資產負債表，現金餘額超過 10 億美元。

At this point, I'd be remiss to not discuss our M&A strategy in the light of the Maxim acquisition. ADI selectively uses M&A to expand both our scale and our scope in order to better address the future needs of our customers and deliver sustainable, profitable growth. And while cost synergies are an important element in evaluating any acquisition, from our perspective, the most compelling benefits come from combining technology portfolios to capture new addressable markets and drive on-term revenue synergies.

在這一點上，如果我不結合 Maxim 收購來討論我們的併購策略，那就太失職了。 ADI 選擇性地透過併購來擴大我們的規模和範圍，以便更好地滿足客戶的未來需求並實現可持續的獲利成長。雖然成本協同效應是評估任何收購的一個重要因素，但從我們的角度來看，最引人注目的好處來自於整合技術組合，以佔領新的潛在市場並推動長期收入協同效應。

This revenue takes time to realize, given the nature of the Analog business, but our products deliver recurring revenue streams and cash flow for decades. Therefore, we strive to achieve our return objective within approximately 5 years. This time frame allows us to not only achieve the stated cost savings but also begin to capture the early revenue synergies. And I think the acquisition of LTC illustrates the benefits of our strategy.

考慮到模擬業務的性質，要實現這筆收入需要時間，但我們的產品可以提供數十年的經常性收入流和現金流。因此，我們力爭在大約5年內實現回報目標。這個時間框架使我們不僅能夠實現既定的成本節約，而且還開始捕捉早期的收入綜效。我認為收購 LTC 說明了我們策略的好處。

Our top priorities there were harmonizing the 2 organizations to create an entity that is better than the sum of its parts. To that end, I'm proud to say that we've retained and invested in LTC's exceptional engineering talent. Together, we've created an exciting road map of high-performance analog and power solutions combined. We're exceeding our original $150 million cost synergy target, and we're on track to realize the next $100 million exiting fiscal '21.

我們的首要任務是協調這兩個組織，創造一個比各部分總和更好的實體。為此，我可以自豪地說，我們保留並投資了 LTC 的傑出工程人才。我們共同創建了一個令人興奮的高效能模擬和電源解決方案相結合的路線圖。我們已經超越了最初 1.5 億美元的成本協同目標，並且預計在 21 財年實現下一個 1 億美元的目標。

And from a revenue perspective, we've more than doubled our pipeline value, and we have over $500 million of lifetime revenue coming to market this year, increasing our confidence in doubling LTC's historical growth rate. With LTC complete, we pursued the acquisition of Maxim to strengthen our leadership in the analog industry, better positioning ADI to capitalize on secular growth trends.

從收入角度來看，我們的管道價值增加了一倍多，今年我們將有超過 5 億美元的終身收入進入市場，這增強了我們將 LTC 的歷史成長率翻倍的信心。 LTC 完成後，我們尋求收購 Maxim，以加強我們在模擬行業的領導地位，更好地定位 ADI，以利用長期成長趨勢。

Over the last 5 years, Maxim has shifted its business strategy to focus on B2B markets while enhancing profitability. As a result, Maxim has increased its B2B revenue mix to approximately 80% of total from 55%, expanded its gross margins by more than 500 basis points and increased its free cash flow margin by over 600 basis points during this period. Combined, we're confident we will continue to improve Maxim's performance. This will be driven by our cadre of engineering talent, complementary technologies and breadth of market applications that I'd like to expand on a little here.

在過去 5 年裡，Maxim 已將業務策略轉向專注於 B2B 市場，同時提高獲利能力。因此，Maxim 在此期間將其 B2B 收入組合從 55% 增加到約 80%，毛利率提高了 500 個基點以上，自由現金流利潤率提高了 600 個基點以上。總之，我們有信心繼續提高 Maxim 的表現。這將由我們的工程人才隊伍、互補技術和市場應用的廣度來推動，我想在這裡稍微擴展一下。

The cultures of ADI and Maxim are very aligned. Both companies share a commitment to innovation and engineering excellence. With a combined team of more than 10,000 engineers and $1.5 billion of annual R&D investment, we will continue to be the destination for the world's best analog talent. And with 3x the field technical resources, we'll be better positioned to uncover cross-selling opportunities and serve existing and new customers who have an increased need for application and design support.

ADI 和 Maxim 的文化非常契合。兩家公司都致力於創新和卓越工程。憑藉超過 10,000 名工程師組成的團隊和每年 15 億美元的研發投資，我們將繼續成為世界上最優秀模擬人才的目的地。憑藉三倍的現場技術資源，我們將能夠更好地發現交叉銷售機會，並為對應用和設計支援需求增加的現有和新客戶提供服務。

In the area of power management, Maxim's application-focused offerings are highly complementary with ADI's more general purpose or catalog power portfolio. Together, we will have a more comprehensive power portfolio with approximately $2 billion of revenue. This is particularly important as power is the largest and fastest-growing Analog subsegment and with increasing design complexity and the need for better efficiency, the system power challenges that our customers must overcome continue to rise and rise.

在電源管理領域，Maxim 以應用為中心的產品與 ADI 更通用或目錄電源產品組合具有高度互補性。我們將共同擁有更全面的電力產品組合，收入約 20 億美元。這一點尤其重要，因為電源是最大且成長最快的類比細分市場，並且隨著設計複雜性的增加和對更高效率的需求的增加，我們的客戶必須克服的系統電源挑戰不斷增加。

In automotive, Maxim has one of the premier franchisees, increasing revenue at a mid-teens rate over the last 5 years. They're a leader in high-speed data connectivity for cameras, radars and processors with serial link technology while ADI is a leader in audio solutions with our A2B platform, and both companies are well positioned in vehicle electrification, enabling us to better address automakers' EV requirements, which continuously evolve. Together, we will capture more of the increasing system content per vehicle and enable a better experience for the consumer.

在汽車領域，Maxim 擁有一流的特許經營商之一，在過去 5 年中收入以中位數的速度成長。他們是採用串行鏈路技術的攝影機、雷達和處理器高速資料連接領域的領導者，而ADI 是擁有A2B 平台的音訊解決方案領域的領導者，兩家公司在車輛電氣化領域均處於有利地位，使我們能夠更好地滿足汽車製造商的需求」 不斷發展的電動車要求。我們將共同捕捉每輛車不斷增加的系統內容，並為消費者提供更好的體驗。

Taking a step back, the combined company will have unique positioning with 85% exposure to highly profitable long life B2B markets. Maxim's strengths in the automotive and data center markets will complement ADI's strengths across the industrial, communications and digital health care markets. Additionally, the combined company will have increased financial strength. We expect the combination to be accretive to adjusted EPS within 18 months post close, with targeted cost synergies of $275 million by the end of the second year. We also expect to maintain an industry-leading financial profile. As always, we are committed to generating robust free cash flow, and our goal is to reach the high end of our margin range of 40%.

退一步來說，合併後的公司將擁有獨特的定位，85% 的業務將涉足高利潤、長生命週期的 B2B 市場。 Maxim在汽車和資料中心市場的優勢將補充ADI在工業、通訊和數位醫療保健市場的優勢。此外，合併後的公司將增強財務實力。我們預計此次合併將在交易完成後 18 個月內增加調整後每股收益，目標是到第二年年底實現 2.75 億美元的成本綜效。我們也希望保持業界領先的財務狀況。一如既往，我們致力於產生強勁的自由現金流，我們的目標是達到 40% 的利潤率上限。

With our lower leverage ratio at close, we'll also have the opportunity to deliver enhanced cash returns to our shareholders. And I believe that together, we can grow revenue at mid-single digits due to our alignment with important secular growth trends, such as Industry 4.0, digital health care, next-generation communication systems and vehicle electrification as examples.

由於我們結束時的槓桿率較低，我們也將有機會為股東提供更高的現金回報。我相信，由於我們與工業 4.0、數位醫療保健、下一代通訊系統和汽車電氣化等重要的長期成長趨勢保持一致，我們可以共同實現中個位數的收入成長。

So in closing, we're seeing promising evidence that a broad-based recovery is underway. However, we recognize that the recovery is highly dependent on the future impacts of the pandemic. We've used this unprecedented time to better align our organization and investments into the most important areas. We believe we'll emerge stronger and are better positioned to drive profitable growth. And as I've shared today, we're very excited about the combination with Maxim, which will drive the next wave of disruptive innovation and deliver significant benefits for all stakeholders.

因此，最後，我們看到了有希望的證據，表明廣泛的復甦正在進行中。然而，我們認識到復甦在很大程度上取決於大流行的未來影響。我們利用這個前所未有的時間來更好地將我們的組織和投資調整到最重要的領域。我們相信，我們將變得更加強大，並且能夠更好地推動獲利成長。正如我今天所分享的，我們對與 Maxim 的合併感到非常興奮，這將推動下一波顛覆性創新，並為所有利害關係人帶來顯著利益。

And with that, I'll turn it over to Prashanth to go through the financial details and outlook.

然後，我會將其交給 Prashanth，讓其詳細了解財務細節和前景。

Thank you, Vince. Let me add my welcome to our third quarter earnings call. As a reminder, my comments, with the exception of revenue and nonop expenses will be on an adjusted basis, which excludes special items outlined in today's press release.

謝謝你，文斯。讓我對第三季財報電話會議表示歡迎。提醒一下，我的評論，除收入和非營運費用外，將在調整的基礎上進行調整，其中不包括今天新聞稿中概述的特殊項目。

When we provided quarterly guidance in May, we were facing tremendous uncertainty, just returning to normal capacity levels and experiencing volatile demand patterns across end markets. As we progressed through the quarter, we saw stronger-than-anticipated demand that resulted in less cancellations and higher-than-anticipated backlog conversion. With that as context, our results came in above the midpoint of our revised outlook, with revenue of $1.46 billion, operating margins over 42% and EPS of $1.36.

當我們在五月提供季度指導時，我們面臨著巨大的不確定性，剛剛恢復到正常的產能水平，並經歷了終端市場不穩定的需求模式。隨著本季的進展，我們看到需求強於預期，導致取消訂單減少，積壓訂單轉換率高於預期。以此為背景，我們的業績高於修訂後前景的中點，營收為 14.6 億美元，營業利潤率超過 42%，每股收益為 1.36 美元。

Let me start now with the end market color. Our B2B revenue was up 11% sequentially and flat year-over-year as strength across industrial and communications offset a sharp decline in automotive. Industrial, which represented 53% of revenue during the quarter, finished up 3% year-over-year. We experienced robust growth in health care, instrumentation test and energy applications. This strength was moderated by weaker trends across our broad market and automation businesses. Communications, which accounted for 25% of revenue, achieved a record quarter. Revenue finished up 14% year-over-year, driven by double-digit increases across both wireless and wireline. This strength came from our leadership position in 5G wireless systems and our solid position in optical connectivity used in carrier networks and data centers.

現在讓我從終端市場的顏色開始。我們的 B2B 收入環比增長 11%，與去年同期持平，因為工業和通訊領域的實力抵消了汽車領域的急劇下滑。工業佔本季營收的 53%，年增 3%。我們在醫療保健、儀器測試和能源應用領域經歷了強勁成長。我們廣泛的市場和自動化業務的疲軟趨勢削弱了這種優勢。佔營收 25% 的通訊業務實現了創紀錄的季度業績。在無線和有線業務兩位數成長的推動下，營收年增 14%。這項優勢源自於我們在 5G 無線系統方面的領導地位以及我們在營運商網路和資料中心所使用的光連接方面的穩固地位。

Automotive, which represented 11% of revenue, decreased 29% year-over-year, with all applications declining due to global factory shutdowns and lower vehicle sales. And while no business is immune to the current environment, our BMS and A2B solutions fared quite well. BMS revenue increased sequentially and was down just modestly year-over-year due to our strong penetration across the ecosystem and increasing consumer preference for electric vehicles. And given the continued adoption of our A2B audio platform, A2B revenue has increased over 70% year-to-date despite lower vehicle sales.

佔收入 11% 的汽車業務年減 29%，由於全球工廠關閉和汽車銷量下降，所有應用程式均出現下降。雖然沒有任何企業能夠免受當前環境的影響，但我們的 BMS 和 A2B 解決方案表現得相當不錯。由於我們對整個生態系統的強大滲透以及消費者對電動車的偏好不斷增加，BMS 收入環比增長，同比略有下降。鑑於我們的 A2B 音訊平台的持續採用，儘管汽車銷量較低，但今年迄今為止，A2B 收入仍增長了 70% 以上。

Consumer, which also represented 11% of revenue, was down 13% year-over-year. Relatively flat portable revenue was more than offset by double-digit declines in prosumer due to the pandemic-related softness. We continue to expect 2020 to be the bottom for our consumer business.

消費者業務也佔營收的 11%，年減 13%。由於大流行相關的疲軟，產消者的兩位數下降抵消了相對持平的便攜式收入。我們仍然預計 2020 年將是我們消費者業務的底部。

In addition to the end market commentary, we wanted to provide some insight by geography as we believe it is helpful to investors in this current climate. Most geographies declined year-over-year. We saw double-digit declines in Europe and Japan, while the decline in North America was less pronounced. The rest of Asia increased and China increased double digits year-over-year, largely driven by the robust growth in communications, given our solid position as well as strength in industrial.

除了最終市場評論之外，我們還希望提供一些地理位置的見解，因為我們相信這對當前環境下的投資者有幫助。大多數地區較去年同期下降。我們看到歐洲和日本出現了兩位數的下降，而北美的下降則不太明顯。鑑於我們在工業領域的穩固​​地位和實力，亞洲其他地區的成長和中國的同比成長均達到兩位數，這主要是由通訊領域的強勁成長所推動的。

Now moving on to the P&L. Gross margins returned to our model at approximately 70%, down modestly year-over-year from lower fab utilization. We've accelerated the planned LTC factory closings and have started to realize these benefits in the third quarter. We expect additional savings in the fourth quarter, and we'll exit fiscal 2020 with nearly half of the $100 million savings in our run rate.

現在轉向損益表。毛利率恢復到我們的模型中約 70%，由於晶圓廠利用率較低而同比小幅下降。我們加快了計劃中的 LTC 工廠關閉速度，並已在第三季開始實現這些效益。我們預計第四季度將實現更多節省，到 2020 財年時，我們的運行率將節省 1 億美元，其中近一半是節省的。

OpEx was $402 million, up 3% sequentially, yet down 8% year-over-year. We maintained a focus on controlling expenses, which included a 1-week global shutdown during the quarter. OP margins finished at 42.3%, the highest level since the third quarter of 2018. Nonop expenses were $46 million, down $3 million sequentially and more than $10 million year-over-year, driven by lower levels of debt and lower interest rates. Our tax rate for the quarter was approximately 11.5%, and all told, third quarter EPS came in at $1.36.

營運支出為 4.02 億美元，季增 3%，但年減 8%。我們繼續專注於控制支出，其中包括本季全球為期 1 週的停工。 OP 利潤率為 42.3%，為 2018 年第三季以來的最高水準。由於債務水準較低和利率較低，Nonop 費用為 4,600 萬美元，比上一季減少 300 萬美元，年比超過 1,000 萬美元。我們本季的稅率約為 11.5%，總而言之，第三季每股收益為 1.36 美元。

Now moving on to the balance sheet. We finished the quarter with over $1 billion of cash and about $5.6 billion in total debt. This resulted in a leverage ratio of 1.8x on a trailing 12-month basis. Inventory dollars increased $22 million sequentially, but declined year-over-year. Days of inventory remained basically unchanged at 125. Channel inventory remains lean and is below the low end of our 7- to 8-week target range. Cash from operations was $557 million, and CapEx was only $21 million as we proactively reduced CapEx spend in the current environment. This resulted in free cash flow of $536 million, up 8% year-over-year.

現在轉向資產負債表。本季結束時，我們擁有超過 10 億美元的現金和約 56 億美元的總債務。這導致過去 12 個月的槓桿率為 1.8 倍。庫存美元季增 2,200 萬美元，但年減。庫存天數基本上保持在 125 天不變。渠道庫存仍然偏少，低於我們 7 至 8 週目標範圍的下限。營運現金為 5.57 億美元，資本支出僅為 2,100 萬美元，因為我們在當前環境下主動減少了資本支出。這導致自由現金流達到 5.36 億美元，年增 8%。

Our long-term CapEx target remains the same at approximately 4% of sales. And as Vince mentioned, on a trailing 12, we generated $1.8 billion of free cash flow. Over the same period, we've returned around $860 million to shareholders via dividends and additional $410 million via buybacks. This equates to a free cash flow return after debt reduction of nearly 80%, which is below our 100% return target as we paused our buyback program.

我們的長期資本支出目標保持不變，約為銷售額的 4%。正如 Vince 所提到的，在過去 12 年裡，我們創造了 18 億美元的自由現金流。同期，我們透過股利向股東返還約 8.6 億美元，並透過回購額外返還 4.1 億美元。這相當於債務削減後的自由現金流回報率接近 80%，低於我們暫停回購計畫時 100% 的回報目標。

Now I'd like to expand on Vince's commentary and discuss how our combination with Maxim will further enhance our financial profile. At deal announcement, ADI and Maxim had a combined pro forma leverage ratio of 1.2x, which will decrease between today and deal close. The main driver being Maxim, which is in cash accumulation phase. They will pay one more quarterly dividend before suspending it for 4 quarters, and their buyback is on pause.

現在我想詳細闡述 Vince 的評論，並討論我們與 Maxim 的合併將如何進一步改善我們的財務狀況。在交易公告時，ADI 和 Maxim 的合併預期槓桿率為 1.2 倍，從今天到交易結束期間該槓桿率將會下降。主要驅動力是Maxim，該公司正處於現金累積階段。他們將再支付一次季度股息，然後暫停 4 個季度，回購也暫停。

Said another way, all the cash generation for the 12 months beginning in the second quarter of their fiscal 2021 will be added to the balance sheet. And for reference, over a trailing 12-month period, Maxim generated $730 million of free cash flow. ADI plans to continue to pay and grow our dividend. And as I mentioned earlier, our buyback program was paused during the height of COVID-19 and will remain on hold for now. When circumstances permit, our intention is to reinstate the program, which has nearly $2 billion remaining under authorization.

換句話說，從 2021 財年第二季開始的 12 個月內產生的所有現金都將添加到資產負債表中。作為參考，在過去 12 個月內，Maxim 產生了 7.3 億美元的自由現金流。 ADI 計劃繼續支付並增加股息。正如我之前提到的，我們的回購計劃在 COVID-19 高峰期間暫停，目前仍將暫停。在情況允許的情況下，我們打算恢復該計劃，該計劃仍有近 20 億美元的授權。

Also, as we previously outlined, we plan on repaying $300 million to $500 million of debt in 2020. This quarter, we intend to honor that commitment by retiring our $450 million January 2021 note. This will save $13 million of annual interest expense. We believe the stronger balance sheet provides us with flexibility to improve on our 100% free cash flow return and increase shareholder value over the long term through a combination of reinvestment in the business, continued dividend increases, greater and more consistent buybacks and targeted acquisitions.

此外，正如我們先前概述的，我們計劃在 2020 年償還 3 億至 5 億美元的債務。本季度​​，我們打算兌現這項承諾，兌現 2021 年 1 月發行的 4.5 億美元票據。這將節省每年1300萬美元的利息支出。我們相信，更強勁的資產負債表使我們能夠靈活地提高100% 的自由現金流回報，並透過業務再投資、持續增加股息、更大規模、更一致的回購和有針對性的收購相結合，提高長期股東價值。

And now on to the fourth quarter outlook. Fourth quarter revenue is expected to be $1.44 billion, plus or minus $70 million. This outlook considers our current understanding of the impact related to the recent legislation enacted on Monday. It's important to remember that this customer's revenue has been significantly reduced over the last year to a low single-digit percent of total sales. We anticipate B2B revenue to decrease modestly for the third quarter. Strong growth in automotive as well as growth in industrial is more than offset by a decline in communications. This decline in communications is related to a slowdown of deployment as we forecasted in the last call and the limited impact from the recent legislation.

現在談談第四季的展望。第四季營收預計為 14.4 億美元，上下浮動 7,000 萬美元。這項展望考慮了我們目前對週一頒布的最新立法影響的理解。重要的是要記住，去年該客戶的收入已大幅減少，佔總銷售額的比例僅為個位數。我們預計第三季 B2B 營收將小幅下降。汽車和工業的強勁成長被通訊產業的下滑所抵消。正如我們在上次電話會議中所預測的那樣，通訊量的下降與部署放緩以及最近立法的影響有限有關。

On a year-over-year basis, B2B revenue is forecasted to increase low to mid-single digits. We anticipate our operating margin to be approximately 42%, plus or minus 100 bps. We're planning for the tax rate to be between 12% and 13%. And based on these inputs, adjusted EPS is expected to be $1.32, plus or minus $0.10.

與去年同期相比，B2B 收入預計將成長低至中個位數。我們預計營業利潤率約 42%，上下浮動 100 個基點。我們計劃稅率在 12% 到 13% 之間。根據這些投入，調整後每股收益預計為 1.32 美元，上下浮動 0.10 美元。

So now I'll close my remarks by stating that third quarter proved better than our expectations, largely driven by our conservative planning and aggressive execution. As we move through the integration planning process with Maxim, we remain fully committed to driving sustainable growth through cutting-edge innovation and a focus on our customer success.

因此，現在我將透過指出第三季的業績好於我們的預期來結束我的發言，這在很大程度上是由我們保守的計劃和積極的執行所推動的。當我們與 Maxim 進行整合規劃過程時，​​我們仍然完全致力於透過尖端創新和關注客戶成功來推動永續成長。

I'm going to pass it back to Mike now to start our Q&A.

我現在將其傳回給邁克以開始我們的問答。

Thanks, Prashanth. Okay. Let's get to our Q&A session. I've listened to all your feedback about the -- around questions and the number of questions on the call. So we're going to run this a little differently than normal. (Operator Instructions) And with that, Cheryl, can we have our first question, please.

謝謝，普拉珊特。好的。讓我們進入問答環節。我已經聽取了你們對電話會議中的問題和問題數量的所有回饋。因此，我們的運作方式將與平常略有不同。 （操作員說明）謝麗爾，我們可以提出第一個問題嗎？

(Operator Instructions) And our first question comes from John Pitzer from Crédit Suisse.

（操作員說明）我們的第一個問題來自瑞士信貸銀行的 John Pitzer。

Congratulations on the solid results. I just want to follow up on the recent Department of Commerce ruling. Am I to read into that that you've embedded sort of 0 revenue coming from that one customer. And just given how strong China has been as a region, Vince, are you at all worried that there's been pull forward? Or is that just a natural offshoot of that's the geo where a lot of 5G deployment is happening?

祝賀取得了紮實的成果。我只想跟進商務部最近的裁決。我是否應該理解，您已經嵌入了來自該客戶的 0 收入？考慮到中國作為一個地區的強大程度，文斯，你是否擔心會出現這種情況？或者這只是大量 5G 部署所在地區的自然分支？

Yes. Good question. Thanks, John. So we have pretty much discounted our top -- what used to be our #1 customer in China to pretty much 0 in our long-term planning thinking. It has been a low single-digit customer over the past few quarters. So we have factored also, by the way, the latest regulatory upheaval into our numbers. So at this point in time, the largest 5G customer there in China that used to be is no longer part of the planning or the -- either in the short term or the long term.

是的。好問題。謝謝，約翰。因此，在我們的長期規劃思維中，我們對我們的頂級客戶（曾經是我們在中國的第一大客戶）的折扣幾乎為零。在過去的幾個季度中，該客戶的數量一直處於個位數的低點。順便說一句，我們還將最新的監管動盪納入了我們的數據中。因此，目前，中國曾經最大的 5G 客戶不再是規劃的一部分，無論是短期或長期。

I'd say as well what we've seen in terms of the strength in China that Prashanth referred to is really -- is the fact that China was the first to go into the pandemic, first to come out. It's an economy that's growing very, very rapidly and has been up for several years now. So I think there's been a very good balance, I believe, between supply and demand across all the sectors. I mean, we've seen growth in all markets with the exception of automotive. So I think what we're seeing in terms of the strength in China is more about the match between the strength in our business and the economy than anything else.

我還要說的是，我們所看到的普拉山特提到的中國的實力確實是這樣一個事實：中國是第一個陷入大流行的國家，也是第一個走出疫情的國家。這是一個成長非常非常快的經濟體，並且已經持續了好幾年了。因此，我認為所有產業的供需之間都存在著非常好的平衡。我的意思是，我們看到了汽車以外的所有市場的成長。因此，我認為我們在中國看到的實力更多的是我們的業務實力與經濟之間的匹配，而不是其他任何事情。

Our next question comes from Vivek Arya from Bank of America Securities.

我們的下一個問題來自美國銀行證券公司的 Vivek Arya。

Congratulations on the strong execution. I wanted to follow up on John's question about your communications business. And I was hoping, Vince, if you could help us quantify how much communications could perhaps decline sequentially? And what are you baking in from this Department of Commerce regulation? And then I think that the bigger question there is that as we look forward to next year, do you think global 5G deployments can stay on track if Huawei doesn't get access to U.S. technology? Like, are we really contemplating a world where Huawei is not going to be a player at all in 5G deployment? And if there is such a world, does it still mean that 5G deployments globally can actually happen at the pace people were thinking about before? Any perspective would be very useful.

祝賀您執行力強。我想跟進約翰關於你們通信業務的問題。文斯，我希望你能幫我們量化通訊可能會連續下降多少？您從商務部的這項規定中得到了什麼？然後我認為更大的問題是，當我們展望明年時，您認為如果華為無法獲得美國技術，全球 5G 部署能否保持在正軌上？例如，我們是否真的在考慮一個華為根本不會參與 5G 部署的世界？如果存在這樣一個世界，是否仍然意味著全球 5G 部署實際上可以按照人們之前想像的速度進行？任何觀點都會非常有用。

Yes. Vivek, we're going to split that. And let me take the first part of it. So to clarify, third quarter, we believe, did not see any pull-ins from Huawei. Fourth quarter outlook reflects the guidance we gave you, reflects the full impact for us of the Department of Commerce implications from earlier this week. So all of that is now baked in.

是的。維韋克，我們要分開。讓我來談談第一部分。因此需要澄清的是，我們認為第三季沒有看到華為的任何拉力。第四季展望反映了我們給您的指導，反映了本週早些時候商務部影響對我們的全面影響。所以現在所有這些都已經完成了。

In terms of the amount of decline that we are expecting in the communications business, this is a lumpy business. We've said that consistently. It's growth measured in years and lumpy by quarter. We don't give forward guidance on an end market basis by quarter anymore. We haven't done that for a little bit of time. So we don't want to start that now. But take it to understand that the movement in the communications business from third to fourth quarter was very much in normal operating lumpiness of the communications business is not exacerbated in any way by what happened on Monday or Tuesday's announcement. And now I'll pass back to Vince for your more challenging strategic question.

就我們預期通訊業務的下降幅度而言，這是一個不穩定的業務。我們一直這麼說。它的成長以年為單位，並按季度波動。我們不再按季度提供終端市場的前瞻性指引。我們已經有一段時間沒有這樣做了。所以我們現在不想開始。但要明白，通訊業務從第三季到第四季的變動很大程度上是在正常營運中，通訊業務的波動性並沒有因週一或週二的公告而加劇。現在我將回到文斯回答你更具挑戰性的戰略問題。

Yes. So Vivek, I've been in this business a long, long time actually since 2 -- the inception of 2G, all those years ago back in the late 80s, early 90s and what I can tell you is that the patterns we're seeing in 5G are no different to what we've seen in 2G, 3G or 4G. And if you look at 4G, specifically, just to give you a bit of perspective here, we grew, albeit a very, very lumpy business, as we always say, but we grew over the entire era of its buildout by mid-single digits. We had more content than we had in the prior generations. We took more share. And we're actually even better positioned in 5G because it's a more complex radio problem fundamentally. We have a lot more technology to put into the space from microwave and RF, right down to the mixed signal. And now we're attaching power also.

是的。所以，Vivek，我實際上從 2 世紀 80 年代末、90 年代初開始，2G 誕生以來，我就已經從事這個行業很長時間了，我可以告訴你的是，我們現在的模式5G 中看到的內容與我們在2G、3G 或4G 中看到的內容沒有什麼不同。如果你具體看一下4G，只是為了給你一些視角，我們會成長，儘管正如我們常說的那樣，這是一個非常非常不穩定的業務，但我們在其擴張的整個時代中以中個位數增長。我們擁有比前幾代人更多的內容。我們獲得了更多份額。事實上，我們在 5G 領域的定位甚至更好，因為它從根本上來說是一個更複雜的無線電問題。我們有更多的技術可以投入這個領域，從微波和射頻，一直到混合訊號。現在我們也正在連接電源。

So another factor that we're beginning to see the emergence of. So today, 5G has really been about giving more bandwidth to the consumer, more throughput to the consumer. The future is about, I think, B2B more so than the consumer. And we're beginning to see, I believe, the early adoption of 5G in the factory automation area. In fact, I have verified that with some of our industrial automation customers as well. So 3Q is definitely likely the highest revenue quarter this year, but there are lots of drivers at the secular level and the company level to keep us in good stead for growth over the long term.

我們開始看到另一個因素的出現。因此，今天，5G 的真正目的是為消費者提供更多頻寬、更高吞吐量。我認為，未來更多的是 B2B，而不是消費者。我相信，我們開始看到 5G 在工廠自動化領域的早期採用。事實上，我也向我們的一些工業自動化客戶證實了這一點。因此，第三季度肯定是今年收入最高的季度，但長期層面和公司層面有許多驅動因素，使我們有利於長期成長。

Vivek, I'll also add one thing to try to avoid the plethora of Huawei questions that I can tell are lining up. So we've given you a lot of context around that customer. We said they're a mid-single-digit customer. The legislation put in place was we can ship for about half this quarter. So they'll be lower this quarter than normal. And going forward, after that, our expectation should be, it goes to 0. So our outlook for 1Q would be down for communications because of that.

Vivek，我還要添加一件事，以避免出現大量我所知的華為問題。因此，我們為您提供了有關該客戶的大量背景資訊。我們說他們是中等個位數的客戶。制定的立法是我們可以在本季度運送大約一半的貨物。因此，本季的價格將低於正常水平。展望未來，在那之後，我們的預期應該是，它會變成 0。因此，我們對第一季通訊的展望將因此而下降。

The last couple of quarters have actually been low single digits. And as we've said now a couple of times, we are no longer factoring Huawei into our numbers.

過去幾個季度實際上是低個位數。正如我們已經說過幾次，我們不再將華為納入我們的數據中。

Your next question comes from Tore Svanberg from Stifel.

您的下一個問題來自 Stifel 的 Tore Svanberg。

Congratulations, especially during these tough times. I had a question on sort of bookings linearity and backlog. I know last quarter, you obviously entered the quarter with pretty high backlog, and you were sort of discounting that. Are we sort of back to a more normal backlog level now for either you, Vince or Prashanth?

恭喜你，尤其是在這些艱難時期。我有一個關於預訂線性和積壓的問題。我知道上個季度，您顯然以相當高的積壓進入了該季度，並且您有點低估了這一點。對於你、Vince 或 Prashanth 來說，我們現在是否已經回到了更正常的積壓水平？

Yes. So let's -- maybe let me answer that by talking about the order patterns. So we saw strong May, some slowdown in June, which was expected. July was sort of a stable month-over-month, and that was better than we expected. Through August, relatively stable, and August is typically a lower seasonal month. So we have lower backlog in third quarter as we enter the quarter and a good balance between supply and demand. This quarter, as we look forward to our guide, we've got stronger coverage from backlog than we typically do. And if we converted -- if you recall, in the third quarter, we said that we had about $50 million of products that we couldn't ship in the second quarter that we caught up with in the third quarter.

是的。那麼讓我們——也許讓我透過討論訂單模式來回答這個問題。因此，我們看到 5 月表現強勁，6 月有所放緩，這是預期的。 7 月環比穩定，比我們預期的要好。整個八月相對穩定，八月通常是季節性較低的月份。因此，進入第三季後，我們的積壓量有所減少，供需之間保持了良好的平衡。本季度，當我們期待我們的指南時，我們從積壓中獲得了比平常更強的覆蓋率。如果我們進行轉換——如果你還記得的話，在第三季度，我們說我們有大約 5000 萬美元的產品無法在第二季度發貨，而我們在第三季度趕上了。

That actually came in a little bit higher because we had fewer cancellations. So we probably had maybe $100 million all in of revenue in third quarter that really related to backlog from second quarter. So I think that through fourth quarter, we're going to get supply and demand back in balance. Backlog has come down and will be more back to normal levels. As we have guided for the fourth quarter, we've taken into consideration the stronger backlog, but we've also taken into consideration that at an ADI level, our book-to-bill for the fourth quarter is now below parity.

實際上，這個數字有點高，因為我們的取消航班較少。因此，我們第三季的總營收可能為 1 億美元，這確實與第二季的積壓訂單有關。因此，我認為到第四季度，我們將讓供需恢復平衡。積壓訂單已經減少，並將恢復到正常水準。正如我們對第四季度的指導那樣，我們考慮到了更強勁的積壓，但我們也考慮到，在 ADI 水平上，我們第四季度的訂單出貨比現在低於平價。

And our next question comes from Ambrish Srivastava from BMO.

我們的下一個問題來自 BMO 的 Ambrish Srivastava。

Vince, I wanted to pivot back to the strategic priorities, and thanks for articulating everything in context of the latest acquisition. This is a question I get a lot and I scratch my head on this, too, because of you bought Linear and then Maxim also on the power side. So the question -- and you did provide us with some details on Linear. A couple of questions tied to that. With respect to Hittite, you have given us the growth in Hittite versus what it used to grow and how you have been able to grow that versus prior to acquisition. So the question is, how has Linear done with respect to the core business? And I don't expect you to answer it every quarter, but I think it's a pertinent question in light of the Maxim acquisition. So kind of 2-part question. One, how has Linear done since you bought it?

文斯，我想回到策略優先事項上來，感謝您在最新收購的背景下闡明了一切。這是一個我常被問到的問題，我也對此感到摸不著頭腦，因為你買了 Linear，然後 Maxim 也在電源供應器方面。所以這個問題——你確實向我們提供了一些關於線性的細節。有幾個與此相關的問題。關於赫梯，您向我們介紹了赫梯的成長情況與過去的成長情況以及您如何能夠與收購之前相比實現成長。那麼問題來了，Linear在核心業務方面做得如何？我並不期望您每季都會回答這個問題，但我認為鑑於 Maxim 的收購，這是一個相關的問題。這是一個由兩部分組成的問題。一，自您收購 Linear 以來，它的表現如何？

And then this was the year that we were supposed to get revenue synergy. Now this is a very topsy-turvy year, so we all understand that. But should we expect revenue synergies to start showing up from Linear with all the efforts that have been going on?

今年我們本應獲得所得綜效。現在是非常混亂的一年，所以我們都明白這一點。但是，我們是否應該期望透過 Linear 一直以來的努力開始出現收入綜效？

Yes. Thanks, Ambrish. So we have already seen the benefit of LTC in our growth numbers. I would say, at this point in time, we've put more than 100 basis points of growth on the base Linear growth rate to date. We have -- I think the greatest indicator for what things are likely to be in the future, I've said before that I believe that we can double the growth rate of LT over the longer term, and just given the markets in which we play and the design cycles, the product cycles, it takes 3 years minimum, and then you begin to see the real benefits, I think, after 5 years. So we're over 100 basis points of additive growth right now.

是的。謝謝，安布里什。因此，我們已經在我們的成長數字中看到了 LTC 的好處。我想說，到目前為止，我們已經在基本線性成長率的基礎上實現了 100 多個基點的成長。我們有——我認為未來可能發生的事情的最大指標，我之前說過，我相信從長遠來看，我們可以將 LT 的增長率翻倍，並且考慮到我們所處的市場遊戲、設計週期、產品週期，至少需要3 年，然後你開始看到真正的好處，我認為，5 年後。因此，我們目前的附加成長超過 100 個基點。

And if you look at our pipeline, I referred to it in the prepared remarks, we have got a design win pipeline of over $0.5 billion thus far. We have seen wins in communications, both on the wireless side as well as the data center side. Infotainment in automotive, infotainment, radar and, of course, BMS. We're seeing tremendous uptake for some of our more integrated products in areas like instrumentation tests using our micromodule technologies. And I'm quite pleased, given the turmoil in the global markets right now that we continue to see good traction on the design win rates, and I'm confident that we can get from 3% to 4% growth rates in the past to more -- a higher -- mid- to high single-digit level in the future and do it sustainably. So I think we have emerging evidence that we're on good track to do that.

如果你看看我們的管道，我在準備好的評論中提到過，到目前為止，我們已經獲得了超過 5 億美元的設計勝利管道。我們已經看到了通訊方面的勝利，無論是在無線方面還是在資料中心方面。汽車資訊娛樂、資訊娛樂、雷達，當然還有 BMS。我們看到我們的一些整合度更高的產品在使用我們的微模組技術進行儀器測試等領域得到了巨大的採用。我很高興，考慮到目前全球市場的動盪，我們繼續看到設計獲勝率的良好牽引力，我相信我們可以從過去的 3% 到 4% 的增長率未來會達到更高的中高個位數水平，並且可持續地做到這一點。所以我認為我們有新的證據表明我們正在順利做到這一點。

And our next question comes from Toshiya Hari from Goldman Sachs.

我們的下一個問題來自高盛的 Toshiya Hari。

Congrats on the strong results. Vince, I had a question on your automotive business. Curious, how are you thinking about the shape of the recovery in automotive over the next couple of quarters? Obviously, you've been impacted by your customer factory shutdowns and the demand situation post COVID. But curious, are you thinking it could be more of a V-shaped recovery, could it be more U-shaped? Any thoughts there would be super helpful. And if you can speak to your key applications within automotive. You gave great color on the July quarter, but if you can talk about BMS, A2B, some of the key growth drivers for October and beyond, that would be helpful.

祝賀取得強勁的成果。文斯，我有一個關於您的汽車業務的問題。好奇，您如何看待未來幾季汽車產業的復甦？顯然，您受到了客戶工廠關閉和新冠疫情後需求情況的影響。但好奇的是，您認為這可能是 V 型復甦，還是 U 型復甦？任何想法都會非常有幫助。如果您能談談您在汽車領域的關鍵應用。您對 7 月季度的描述非常精彩，但如果您能談談 BMS、A2B、10 月及以後的一些關鍵成長驅動因素，那將會很有幫助。

Okay. Thanks, Toshi. So yes, we're seeing a recovery in the market. Actually, our book-to-bill was greater than unity across all regions over the last month or so. And we believe that our third quarter represents the bottom of the cycle for us. So I think the near-term recovery and the demand that we're seeing relates to factories coming back online and also a slow improvement in SAAR. So I think the shape of the recovery really depends on the demand -- the end demand for cars and how SAAR actually grows. And we'll -- that will need -- we'll need to see continued vehicle demand to get back to the pre-COVID level. So it's not there yet. So factories are coming back online. Demand is slowly increasing. So hard to call the exact shape, but somewhere between a V and a U, I guess, or maybe already a U, and we're seeing the upsurge.

好的。謝謝，托西。所以，是的，我們看到市場正在復甦。事實上，在過去一個月左右的時間裡，我們的訂單出貨量高於所有地區的整體出貨量。我們相信，第三季對我們來說代表著週期的底部。因此，我認為近期的復甦和我們看到的需求與工廠恢復生產以及 SAAR 的緩慢改善有關。因此，我認為復甦的形式實際上取決於需求——汽車的最終需求以及 SAAR 的實際成長方式。我們需要看到持續的車輛需求才能回到新冠疫情前的水平。所以它還沒有出現。所以工廠正在恢復生產。需求正在緩慢增加。很難說出確切的形狀，但我猜是介於 V 型和 U 型之間，或者可能已經是 U 型了，我們正在看到這種熱潮。

I would say electric vehicles in general have held up better in this market. As we said in the prepared remarks, there's a strong consumer preference for electric vehicles. It's the fastest-growing sector at this point in time. And we're continuing to gain share in the market. We've seen growth quarter-on-quarter in that space. And we're also very pleased with our performance. A2B actually grew about, I think it was 70% year-to-date. So the adoption, the design wins that we had gotten last year across most of the OEMs beginning to turn into serious revenue now. And on top of that, we're also overlaying this road noise cancellation technology that uses our digital signal processors, algorithmic technology and different analog support technologies on the input and output there. So those are the major areas. And I think, as I said, I believe we're in a slow recovery phase in automotive. And I think, in general, very hard to call the next quarter, the next 2 quarters, but my sense is '21 will be a growth year for the industry and a growth year for ADI. And -- I mean that's how I view it at this point in time. So we're seeing a gentle recovery in general across all our market spaces.

我想說，電動車總體上在這個市場上表現得更好。正如我們在準備好的發言中所說，消費者對電動車有強烈的偏好。這是目前成長最快的行業。我們正在繼續擴大市場份額。我們已經看到該領域的季度環比增長。我們對我們的表現也非常滿意。今年迄今為止，A2B 實際上增長了 70%。因此，我們去年在大多數原始設備製造商中獲得的採用和設計勝利現在開始轉化為可觀的收入。最重要的是，我們還在輸入和輸出上疊加了這種道路噪音消除技術，該技術使用我們的數位訊號處理器、演算法技術和不同的類比支援技術。這些是主要領域。正如我所說，我認為我們正處於汽車產業的緩慢復甦階段。我認為，總的來說，很難預測下一個季度、接下來的兩個季度，但我的感覺是，21 年將是該行業的成長年，也是 ADI 的成長年。而且——我的意思是，這就是我目前的看法。因此，我們看到所有市場空間總體上都在溫和復甦。

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）。

I'm a little bit confused. I know you've been saying we're entering into recovery, but how do I square that with a book-to-bill going forward that is less than 1? I mean is it just comm? Like how should I be thinking about book-to-bill by segment? And what does that imply for, like, the longer-term trajectory?

我有點困惑。我知道您一直在說我們正在進入復甦階段，但我該如何將其與未來小於 1 的訂單出貨比進行比較？我的意思是這只是通訊嗎？例如我應該如何按細分市場考慮訂單到帳單？這對長期軌跡意味著什麼？

Yes. Great question, Stacy. The -- so I would say that certainly, the communications business is a piece of that. And I would also say that we -- when we look back at the demand activity over the last quarter or 2, we feel very good that that was driven by very kind of real demand based on conversations with customers. But there was probably some level of inventory building that was going on in there given that the inventory levels at our end customers were so low. Coming into this pandemic, they had taken -- end customers really at the industrial level, had taken their inventory levels down pretty significantly in 2019. And then the pandemic hit.

是的。很好的問題，史黛西。所以我想說，通訊業務當然是其中的一部分。我還想說，當我們回顧過去一兩個季度的需求活動時，我們感覺非常好，這是由基於與客戶對話的真實需求所驅動的。但鑑於我們最終客戶的庫存水準如此之低，那裡可能正在進行一定程度的庫存建設。面對這場大流行，他們在 2019 年確實在工業層面上大幅降低了庫存水準。然後大流行爆發了。

And so I think some of the strength that the industry is seeing now has a little bit of that renormalizing that. So as we kind of look forward into fourth quarter, there is a lot of opportunity for us. And I think that the new order activity remains good, overdues are declining. So it's -- I think we'll have to let another quarter or 2 roll out. We don't have enough visibility, I think, to tell you what the future portends. But we're not seeing a sharp decline in order activity, but it is below 1.

因此，我認為該行業現在看到的一些力量已經使這種情況重新正常化了。因此，當我們期待第四季時，我們有很多機會。我認為新訂單活動仍然良好，逾期訂單正在減少。所以我想我們還得再等一、兩個季度推出。我認為，我們沒有足夠的知名度來告訴你未來預示著什麼。但我們並沒有看到訂單活動急劇下降，但低於 1。

Got it. But just to clarify -- I'm sorry?

知道了。但只是為了澄清——對不起？

Stacy, we are guiding down sequentially. Our book-to-bill is slightly below 1. So it does go in tandem to what we're saying. And you're right to think about the tele market. Comm is much below 1, auto is a bit above 1, industrial is around 1. So it all lines up to what the guidance we gave and the range we have given.

史黛西，我們按順序引導下去。我們的訂單出貨比略低於 1。所以它確實與我們所說的相符。您對電話市場的看法是正確的。通訊遠低於 1，汽車略高於 1，工業約為 1。因此，這一切都符合我們給出的指導和範圍。

And our next question comes from C.J. Muse, Evercore.

我們的下一個問題來自 Evercore 的 C.J. Muse。

I guess, a cycle question. And if I look at your S-4 and you projected revenues in there for fiscal '20 at roughly $170 million below what you're actually looking to accomplish here. And so curious, versus what you put there in the S-4, what led to the upside there? And is that something that we should think can continue beyond the October quarter?

我想，這是一個循環問題。如果我查看您的 S-4，您預計 20 財年的收入約為 1.7 億美元，低於您實際希望實現的目標。很好奇，與您在 S-4 中放置的內容相比，是什麼導致了那裡的優勢？我們認為這種情況會持續到十月季度之後嗎？

C.J., that was really around the timing of when we were having those conversations. If you look back at the timing of when we were in those, the world looked very different to us. I think it looked differently to everyone back at that period when the pandemic looked like it was raging at a pretty sharp pace across the globe. So our S-4 probably reflected more of the uncertainty that we had out there that has since been -- more clarity has been brought.

C.J.，那確實是我們進行這些談話的時間。如果你回顧我們所處的時代，你會發現世界對我們來說非常不同。我認為，在那個時期，當疫情在全球範圍內以相當快的速度肆虐時，每個人的看法都不同。因此，我們的 S-4 可能更多地反映了我們所面臨的不確定性——已經帶來了更多的清晰度。

We'll go to our last question, please.

我們將討論最後一個問題。

Our last question comes from Craig Hettenbach from Morgan Stanley.

我們的最後一個問題來自摩根士丹利的克雷格·赫滕巴赫。

Just a question for Vince on the industrial market and really about the composition maybe in the next couple of quarters. So certainly, medical has been strong, instrumentation. The more cyclically oriented factory automation has been weak. Do you expect any reversal in some of that kind of by subsegment performance as we move forward from here and the macro recovers?

只是文斯問的一個關於工業市場的問題，以及可能在接下來的幾季中真正關於成分的問題。當然，醫療和儀器儀表一直很強大。更具週期性的工廠自動化一直很弱。當我們從現在開始前進並且宏觀經濟復甦時，您是否預期某些細分市場的表現會出現逆轉？

Yes. Well, we've seen -- I mean, energy is a couple of hundred million dollar business a year for ADI. That's been doing well, and we're getting a lot of new design wins. In renewables areas, we've seen strong demand in our test business, supporting 5G buildout and data centers in particular. And we're seeing a little more weakness in instrumentation in areas that relate more to CapEx. If you look at aerospace and defense, which is an important part of our industrial story, obviously, there's weakness in avionics that won't be a huge surprise. But that's a relatively small portion. The biggest portion of our aerospace and defense business is defense, and that business is holding up well as well as the space business, which continues to grow nicely.

是的。嗯，我們已經看到——我的意思是，對於 ADI 來說，能源是每年幾億美元的業務。這一切進展順利，我們贏得了許多新的設計成果。在再生能源領域，我們看到測試業務的強勁需求，特別是支援 5G 建置和資料中心。我們發現，在與資本支出更多相關的領域，儀器有更多弱點。如果你看看航空航天和國防，這是我們工業故事的重要組成部分，顯然，航空電子設備存在弱點，這並不令人意外。但這只是相對較小的一部分。我們的航空航太和國防業務的最大部分是國防，該業務和航太業務都保持良好勢頭，並繼續良好成長。

I would say as well, automation is holding up better than we had thought. But what really excites us there is the future as our customers rethink supply chains, onshoring, reshoring, and we're going to see more and more automation used in general across the globe. So I think that unpacks the story for you. So I think we're seeing strength pretty much across all the sectors or recovery across all the sectors in industrial right now.

我還要說，自動化的表現比我們想像的還要好。但真正讓我們興奮的是未來，隨著我們的客戶重新思考供應鏈、在岸、回流，我們將看到越來越多的自動化在全球範圍內普遍使用。所以我認為這可以為你解開這個故事。因此，我認為我們現在幾乎看到所有工業部門的實力或所有工業部門的復甦。

Thanks so much, Craig. And thanks, everyone, for joining us this morning. A copy of the transcript will be available on our website, and all reconciliations and additional information can also be found there. Thanks for joining us and your continued interest in Analog Devices.

非常感謝，克雷格。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，所有核對和附加資訊也可以在那裡找到。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。