亞德諾半導體 (ADI) 2020 Q1 法說會逐字稿

Good morning, and welcome to the Analog Devices First 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 財年第一季財報電話會議，該電話會議正在透過電話和網路進行音訊網路直播。

I'd like to now introduce your host for today's call, Mr. Michael Lucarelli, Senior Director of Investor Relations.

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。

Sir, the floor is yours.

先生，地板是你的了。

Thanks, Cheryl, and good morning, everybody.

謝謝，謝麗爾，大家早安。

Thanks for joining our first quarter fiscal 2020 conference call.

感謝您參加我們的 2020 財年第一季電話會議。

With me on the call today are ADI's CEO, Vincent Roche; and ADI's CFO, Prashanth Mahendra-Rajah.

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。

For anyone who missed the release, you can find it and relating financial schedules at investor.analog.com.

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.

現在開始披露。

The information we're about to discuss, including our objectives and outlook, include forward-looking statements.

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。

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.

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。

These forward-looking statements reflect our opinion as of the date of this call.

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。

We undertake no obligation to update these forward-looking statements in light of new information or future events.

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 first quarter fiscal 2020 financial results and short-term outlook will also include non-GAAP financial measures, which exclude special items.

我們今天對 ADI 2020 財年第一季財務業績和短期前景的評論還將包括非 GAAP 財務指標，其中不包括特殊項目。

When comparing results to historical performance, special items are also excluded from their prior periods.

將結果與歷史績效進行比較時，特殊項目也被排除在前期之外。

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.

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 CEO, Vincent Roche.

接下來，我會將其交給 ADI 執行長 Vincent Roche。

Vince?

文斯？

Thanks, Mike, and good morning to everybody.

謝謝麥克，大家早安。

While our first quarter results were in line with our expectations, as you'll have seen, importantly, we managed our operating costs and working capital effectively to position ourselves to deliver margin expansion in the quarters ahead.

雖然我們第一季的業績符合我們的預期，但重要的是，我們有效地管理了營運成本和營運資金，以便在未來幾季實現利潤率擴張。

Before I discuss the quarterly highlights, I'd like to address the coronavirus outbreak.

在討論季度亮點之前，我想先談談冠狀病毒的爆發。

First and foremost, our top priority is the health and safety of those affected and, of course, our employees.

首先，我們的首要任務是受影響者的健康和安全，當然還有員工的健康和安全。

We're doing everything we can to provide our customers with the support they need to minimize disruption to their businesses.

我們正在盡一切努力為客戶提供所需的支持，以最大程度地減少對其業務的干擾。

While the situation remains fluid, we are monitoring it closely.

儘管局勢仍然不穩定，但我們正在密切關注。

Prashanth will expand on the financial implications in just a while.

普拉山斯將在稍後闡述其財務影響。

So now on to the first quarter.

現在進入第一季。

Revenue was $1.3 billion, down versus the prior year, but in line with our expectations.

收入為 13 億美元，比上年有所下降，但符合我們的預期。

Operating margin was approximately 37%, a decline versus last year due to lower revenue and our decision to lower utilization.

由於收入下降以及我們決定降低利用率，營業利潤率約為 37%，較去年下降。

Adjusted earnings per share was $1.03, above the midpoint of guidance.

調整後每股收益為 1.03 美元，高於指導中位數。

Over the trailing 12 months, we generated approximately $2 billion of free cash flow, equating to a 35% free cash flow margin, and this continues to place us in the top 10% of the S&P 500.

在過去 12 個月中，我們產生了約 20 億美元的自由現金流，相當於 35% 的自由現金流利潤率，這使我們繼續躋身標準普爾 500 指數前 10% 之列。

On our call last quarter, we shared our priorities for 2020, and I'd like to give you an update on our progress so far.

在上季度的電話會議上，我們分享了 2020 年的優先事項，我想向您介紹我們迄今為止的最新進展。

Priority 1 is the efficient use of our capital.

第一要務是有效利用我們的資本。

The first call on our capital is funding new product development activities.

我們資金的第一個需求是資助新產品開發活動。

In the first quarter, we invested over $250 million in R&D, with more than 90% of this spend targeting the most attractive opportunities across our B2B markets.

第一季度，我們在研發方面投入了超過 2.5 億美元，其中 90% 以上的支出瞄準了 B2B 市場中最具吸引力的機會。

For example, an area of increased focus for ADI is our power franchise.

例如，ADI 日益關注的一個領域是我們的電力特許經營權。

Here, we've been increasing R&D to enhance our strong position in the broad market and to extend into new opportunities across areas like data center, automotive and 5G infrastructure.

在這裡，我們一直在加強研發力度，以增強我們在廣大市場中的強勢地位，並拓展資料中心、汽車和 5G 基礎設施等領域的新機會。

Our power design win momentum remains strong, and we expect to double the LTC historical revenue growth rates in the years ahead of us.

我們的電源設計獲勝動能依然強勁，我們預計未來幾年將實現 LTC 歷史收入成長率的兩倍。

At the same time, we remain committed to delivering strong shareholder returns.

同時，我們仍然致力於為股東帶來豐厚的回報。

In the first quarter, we returned over $300 million to shareholders and we just announced a 15% increase to our quarterly dividend.

第一季度，我們向股東返還了超過 3 億美元，並且剛剛宣布將季度股息增加 15%。

Priority 2 is deepening customer centricity.

第二要務是深化以客戶為中心。

As I've shared before, the combination of our broad product portfolio, domain expertise and manufacturing capabilities sets ADI apart.

正如我之前所分享的，我們廣泛的產品組合、領域專業知識和製造能力的結合使 ADI 脫穎而出。

We're always anticipating the technology needs of our customers and engaging with them early in order to solve their toughest challenges.

我們始終預測客戶的技術需求並儘早與他們合作，以解決他們最棘手的挑戰。

And I'd like to share just a few examples specific to our automotive segment with you now.

我現在想與您分享一些特定於我們汽車領域的例子。

Our A2B platform continues to gain traction in the cabin electronics ecosystem.

我們的 A2B 平台繼續在機艙電子生態系統中獲得關注。

By leveraging our platform portfolio, we're opening up new applications for our customers such as active noise cancellation.

透過利用我們的平台產品組合，我們正在為客戶開闢新的應用程序，例如主動噪音消除。

In the quarter, Hyundai became the 14th auto manufacturer to incorporate our A2B technology.

本季度，現代汽車成為第 14 家採用我們的 A2B 技術的汽車製造商。

And together, we announced the industry's first all-digital road noise cancellation system.

我們共同推出了業界首款全數位道路噪音消除系統。

With the rise of active noise cancellation, we're creating stickier customer relationships due to the integration of our hardware and software capabilities while increasing our SAM per vehicle.

隨著主動降噪技術的興起，我們透過硬體和軟體功能的集成，建立了更牢固的客戶關係，同時增加了每輛車的 SAM。

There's also a lot of intensity and urgency in OEMs moving towards electric powertrains.

原始設備製造商轉向電動動力系統的強度和緊迫感也很高。

We were an early player in the market, partnering with industry leaders to improve the efficiency of the battery in electric vehicles.

我們是市場的早期參與者，與行業領導者合作提高電動車電池的效率。

As a result, our BMS solutions are delivering greater miles per charge and monitoring battery health more accurately.

因此，我們的 BMS 解決方案每次充電可行駛更長的里程，並更準確地監控電池健康狀況。

In the U.S. electric vehicle market, we're benefiting from near-term strength as customers ramp production, and new design wins across future models will help us to deliver on our long-term objective of growing BMS revenue at a double-digit rate.

在美國電動車市場，隨著客戶提高產量，我們受益於近期的實力，而未來車型的新設計勝利將幫助我們實現 BMS 收入以兩位數的速度增長的長期目標。

Priority 3 is capitalizing on secular trends to expand our addressable markets and drive diversified growth.

優先事項 3 是利用長期趨勢來擴大我們的潛在市場並推動多元化成長。

We've previously discussed with you key secular trends across our company such as 5G, electric vehicles, factory automation and data center.

我們之前曾與您討論過我們公司的主要長期趨勢，例如 5G、電動車、工廠自動化和資料中心。

Now today I'd like to spend some time on the space market, perhaps a more obscure subsegment of our industrial sector.

今天我想花一些時間討論太空市場，這可能是我們工業部門中一個更不起眼的部分。

Our space customers' challenges are not just around RF, signal processing and power management.

我們的航太客戶面臨的挑戰不僅僅是射頻、訊號處理和電源管理。

Space solutions must also perform under extreme cosmic radiation and conditions of high temperatures.

太空解決方案還必須在極端的宇宙輻射和高溫條件下發揮作用。

We solve these challenges through the combination of our comprehensive product portfolio and the passive knowledge base built over many decades of serving this market.

我們透過結合全面的產品組合和服務該市場數十年建立的被動知識庫來解決這些挑戰。

While space represents a couple of percent of ADI's total revenue today, it commands stellar margins, and we see potential to double the business over the next 5 years.

雖然航太業務目前僅佔 ADI 總收入的幾個百分點，但它的利潤率非常高，我們認為未來 5 年業務有可能翻倍。

Now let me share a little more with you about why this sector is exciting to us.

現在讓我與您分享更多為什麼這個領域令我們興奮。

The space market is rapidly evolving.

太空市場正在迅速發展。

Over the last decade, unprecedented levels of capital have gravitated towards this vertical, thereby increasing the number of privately funded space companies by 20x.

在過去的十年裡，前所未有的資本水準被吸引到這個垂直領域，使私人資助的航太公司的數量增加了 20 倍。

Therefore, new technologies and capabilities are emerging that are leading to new opportunities for ADI.

因此，新技術和能力不斷湧現，為 ADI 帶來了新的機會。

This includes the advent of low Earth orbit or LEO communication satellites.

這包括近地軌道或低地球軌道通訊衛星的出現。

These satellites are becoming the new frontier in space with forecasts suggesting that by [2025] (corrected by company after the call), over 20,000 will be in orbit, up from just hundreds today.

這些衛星正在成為太空的新前沿，預測顯示到 2025 年（公司在電話會議後已更正），將有超過 20,000 顆衛星進入軌道，而目前只有數百顆。

To provide some context, LEO satellites differ from today's geostationary or geo satellites.

為了提供一些背景資訊，低地球軌道衛星不同於當今的對地靜止衛星或地球同步衛星。

Technologically, they provide lower latency and higher bandwidth, which enable real-time communication.

從技術上講，它們提供更低的延遲和更高的頻寬，從而實現即時通訊。

Operationally, they continuously changed their position relative to the earth and only stay connected with a given terminal for approximately 10 minutes.

在操作上，它們不斷改變相對於地球的位置，並且僅與給定終端保持連接約 10 分鐘。

As a result, the number of terrestrial terminals that communicate with these satellites, whether they're on the ground or in the air, will grow into the millions with the proliferation of LEO satellites.

因此，隨著低軌衛星的擴散，與這些衛星通訊的地面終端數量，無論是在地面或空中，都將成長到數百萬個。

To succeed in creating this network, both satellites and terminals must be capable of being [steered].

為了成功創建這個網絡，衛星和終端都必須能夠被[引導]。

So this requires an exponential increase in channel count enabled through phased array antennas, an architecture that is used in 5G networks already today.

因此，這需要透過相控陣天線來實現通道數量的指數級增長，相控陣天線是目前已在 5G 網路中使用的架構。

And as you can imagine, more channels packed into smaller form factors is increasing thermal and power hurdles.

正如您可以想像的那樣，更多的通道封裝在更小的外形尺寸中正在增加熱量和功率障礙。

To help solve the engineering challenges of creating this ubiquitous and always-connected LEO network, our customers are increasingly turning to ADI, looking to us to not only be a supplier, but indeed, a key system architect.

為了幫助解決創建這種無處不在且始終連接的 LEO 網路的工程挑戰，我們的客戶越來越多地轉向 ADI，希望我們不僅成為供應商，而且確實成為關鍵的系統架構師。

So we're engaging with customers early in their design process to develop end-to-end solutions from antenna to bits, combined with power capabilities, to deliver the required performance and, of course, robustness.

因此，我們在客戶設計過程的早期就與他們合作，開發從天線到位元的端到端解決方案，並結合電源功能，以提供所需的性能，當然還有穩健性。

Our ability to provide a comprehensive portfolio of space-grade solutions across the entire analog spectrum from RF and signal chain to power is unique.

我們在從射頻、訊號鏈到電源的整個類比頻譜範圍內提供全面的航太級解決方案組合的能力是獨一無二的。

And this cannot be completely replicated by any of our competitors, making ADI the go-to supplier for our traditional OEMs as well as the next wave of disruptors.

我們的任何競爭對手都無法完全複製這一點，這使得 ADI 成為我們傳統 OEM 以及下一波顛覆者的首選供應商。

All told, we see the LEO communications satellite plan becoming at least 4x the size of geo over the next 5 years.

總而言之，我們預計未來 5 年內 LEO 通訊衛星計畫的規模將至少是地球衛星的 4 倍。

And with LEO's [shorter] refresh cycle compared to today's satellites, we expect our space business to deliver a steadier stream of revenue in the years ahead.

與當今的衛星相比，LEO 的更新周期[更短]，我們預計我們的航太業務將在未來幾年提供更穩定的收入流。

In summary, space has the potential to be a meaningful growth driver and unlock value across other verticals as well.

總之，太空有潛力成為有意義的成長動力，並釋放其他垂直領域的價值。

Once fully operational, these LEO networks will provide real-time, reliable high-speed connections globally, ushering in opportunities from autonomous driving to telesurgery.

一旦全面投入運營，這些低軌網路將在全球範圍內提供即時、可靠的高速連接，從而帶來從自動駕駛到遠端手術的機會。

So in closing, and speaking broadly about ADI, I believe demand for our solutions will be unprecedented as technological innovation underpinned by ubiquitous sensing, hyperscale and edge computing and pervasive connectivity continues to grow rapidly.

因此，最後，廣泛地談論 ADI，我相信，隨著以無處不在的感測、超大規模和邊緣運算以及普遍連接為基礎的技術創新持續快速增長，對我們解決方案的需求將是前所未有的。

And as I look ahead, I believe we're very well positioned to deliver sustainable, profitable growth and, indeed, strong shareholder returns.

展望未來，我相信我們完全有能力實現可持續的獲利成長，以及強勁的股東回報。

So with that, I'll hand it over to Prashanth.

因此，我將把它交給 Prashanth。

Thank you, Vince.

謝謝你，文斯。

Let me add my welcome to our first quarter earnings call.

讓我對第一季財報電話會議表示歡迎。

My comments today, with the exception of revenue and non-op expenses, will be on an adjusted basis which excludes special items outlined in today's press release.

我今天的評論，除收入和非營運支出外，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。

ADI delivered a solid first quarter.

ADI 第一季業績強勁。

Revenue came in line with our outlook as we meaningfully reduced channel inventory.

由於我們大幅減少了渠道庫存，收入與我們的預期相符。

And through our disciplined spending, operating margin and EPS were above the midpoint of guidance.

透過我們嚴格的支出，營業利潤率和每股收益高於指導值的中點。

We also raised our quarterly dividend to $0.62, an increase of 15%, the high end of our target range of 7% to 15%.

我們還將季度股息提高至 0.62 美元，增幅為 15%，這是我們目標範圍 7% 至 15% 的上限。

The dividend is the cornerstone of our capital allocation policy, and this represents the 17th increase over the last 16 years.

股利是我們資本配置政策的基石，這是過去 16 年來第 17 次增加。

These consistent increases reflect our commitment to strong shareholder returns as well as our optimism about the long-term prospects for our business.

這些持續成長反映了我們對強勁股東回報的承諾以及我們對業務長期前景的樂觀態度。

Before getting into the income statement, let me first cover the end markets.

在進入損益表之前，先介紹一下終端市場。

In line with our expectations, our first quarter B2B revenue declined 15% year-over-year as better-than-expected industrial demand was balanced by softer communications activity.

與我們的預期一致，我們第一季的 B2B 營收年減 15%，原因是好於預期的工業需求與疲軟的通訊活動相平衡。

Industrial, which represented 53% of revenue during the quarter, declined 7% year-over-year.

工業佔本季營收的 53%，年減 7%。

As we forecasted, most applications within this highly diversified business declined, while aerospace and defense once again grew double digits year-over-year.

正如我們預測的那樣，這項高度多元化業務中的大多數應用程式都出現了下降，而航空航太和國防領域則再次實現了兩位數的同比增長。

Communications, which represents 18% of revenue during the quarter, decreased 31% year-over-year as wireless and wired both declined.

由於無線和有線業務雙雙下滑，佔本季營收 18% 的通訊業務年減 31%。

While communications is an inherently lumpy market, our position has never been stronger or more balanced across the ecosystem.

雖然通訊市場本質上是一個不穩定的市場，但我們在整個生態系統中的地位從未如此強大或如此平衡。

We are at the early stages of the global 5G rollout, which we continue to expect will be a multiyear tailwind.

我們正處於全球 5G 部署的早期階段，我們仍然預計這將是多年的推動力。

Our auto business, which represented 16% of revenues during the quarter, declined 16% year-over-year due to weakness across all applications.

我們的汽車業務佔本季收入的 16%，由於所有應用程式的疲軟，比去年同期下降了 16%。

As Vince highlighted, we remain confident in auto due to our strong pipeline of customer wins, especially in our infotainment platform and our market-leading BMS position.

正如 Vince 所強調的那樣，我們對汽車行業仍然充滿信心，因為我們贏得了強大的客戶管道，特別是在我們的資訊娛樂平台和市場領先的 BMS 地位方面。

And lastly, consumer, which represents 13% of revenue during the first quarter, declined 20% due to portable applications.

最後，佔第一季營收 13% 的消費性業務由於便攜式應用的影響下降了 20%。

As we said in our last earnings call, we expect 2020 to be the bottom for our consumer segment.

正如我們在上次財報電話會議中所說，我們預計 2020 年將是我們消費領域的谷底。

Now on to the P&L.

現在來看損益表。

Gross margin came in at 68.5%, up slightly sequentially and down 180 basis points year-over-year as favorable mix was offset by lower utilization.

毛利率為 68.5%，比上一季略有上升，年減 180 個基點，因為利用率下降抵消了有利的組合。

As a reminder, fab utilization was near trough levels this quarter in order to reduce our balance sheet and our channel inventories.

提醒一下，本季晶圓廠利用率接近低谷水平，以減少我們的資產負債表和通路庫存。

OpEx in the quarter was $412 million, down 4% sequentially and down 8% year-over-year.

本季營運支出為 4.12 億美元，季減 4%，年減 8%。

In light of the softer revenue environment, we've curtailed spending and have delivered sequential OpEx declines in each of the past 5 quarters.

鑑於收入環境疲軟，我們削減了支出，並且在過去 5 個季度中營運支出連續下降。

As a reminder, we plan to exit fiscal 2020 with $50 million of annualized savings across cost of goods sold and OpEx.

提醒一下，我們計劃在 2020 財年結束時，在銷售成本和營運支出方面每年節省 5,000 萬美元。

Operating margin finished at approximately 37%, above the guided midpoint.

營業利益率最終約 37%，高於指導中點。

Non-op expenses were $47 million, down $3 million sequentially and $9 million year-over-year, driven by lower interest expense.

由於利息費用下降，非營運費用為 4,700 萬美元，季減 300 萬美元，年減 900 萬美元。

Our tax rate for the quarter was approximately 12%.

我們本季的稅率約為 12%。

All told, first quarter adjusted EPS came in above the midpoint of guide at $1.03.

總而言之，第一季調整後每股收益高於指導值中點，為 1.03 美元。

Now moving on to the balance sheet.

現在轉向資產負債表。

As we planned, inventory was reduced by about $20 million or 4% sequentially.

按照我們的計劃，庫存環比減少了約 2000 萬美元，即 4%。

Despite this reduction, our inventory days increased to 133 due to the lower level of revenue.

儘管有所減少，但由於收入水準較低，我們的庫存天數仍增加至 133 天。

Recall that our target for inventory days is 115 to 125.

回想一下，我們的庫存天數目標是 115 到 125。

But during the process of closing 2 legacy LTC facilities, we do expect to carry an additional 5 to 10 days of bridge inventory to support our customers.

但在關閉 2 個遺留 LTC 設施的過程中，我們確實預計會額外保留 5 到 10 天的過渡庫存來支援我們的客戶。

We also reduced channel inventory by approximately $40 million in the first quarter and plan to reduce channel inventory in the second quarter again but to a lesser degree.

我們也在第一季減少了約 4,000 萬美元的通路庫存，並計劃在第二季再次減少通路庫存，但幅度較小。

CapEx in the quarter was $55 million or about 4% of revenue, and we expect to end fiscal 2020 slightly below our 4% long-term target.

本季的資本支出為 5,500 萬美元，約佔營收的 4%，我們預期 2020 財年結束時略低於我們 4% 的長期目標。

On a trailing 12-month basis, free cash flow finished at $2 billion or a free cash flow margin of about 35%.

在過去 12 個月的基礎上，自由現金流最終達到 20 億美元，自由現金流利潤率約為 35%。

Over this period, we have returned more than 100% of our free cash flow to shareholders through dividends and buybacks after debt repayments.

在此期間，我們透過股利和債務償還後的回購，將超過100%的自由現金流返還給股東。

We paid approximately $200 million in dividends and repurchased $106 million of our stock in the first quarter.

第一季我們支付了約 2 億美元的股息，並回購了 1.06 億美元的股票。

We still plan to pay down between $300 million to $500 million of debt in fiscal 2020.

我們仍計劃在 2020 財年償還 3 億至 5 億美元的債務。

Now we'll provide some context on our recent business trends and our current view on the coronavirus.

現在，我們將提供一些有關我們最近的業務趨勢以及我們目前對冠狀病毒的看法的背景資訊。

In the first quarter, we saw signs of stabilization as we expected.

第一季度，正如我們預期的那樣，我們看到了穩定的跡象。

Orders trended better throughout the quarter and have overall remained relatively resilient into the second quarter.

整個季度的訂單趨勢較好，並且在第二季度總體上仍保持相對彈性。

However, unsurprisingly, we have begun to see weaker demand in China related to the extended Chinese New Year and ongoing business disruption.

然而，毫不奇怪的是，由於農曆新年的延長和持續的業務中斷，我們開始看到中國的需求疲軟。

As such, our outlook assumes that China demand for industrial, automotive and consumer is minimal for all of February before returning to a more normal level in the last 2 months of our second quarter.

因此，我們的前景假設中國對工業、汽車和消費品的需求在整個 2 月都處於最低水平，然後在第二季最後 2 個月恢復到更正常的水平。

And we are assuming an impact on our communications business due to the high likelihood of a delay in the 5G rollout.

由於 5G 推出很可能會延遲，我們預計我們的通訊業務會受到影響。

So while forecasting business dynamics in China is very difficult today, our guidance reflects our best estimates.

因此，儘管今天預測中國的商業動態非常困難，但我們的指導反映了我們的最佳估計。

So looking ahead to Q2, revenue is expected to be $1.35 billion, plus or minus $50 million.

因此展望第二季度，營收預計為 13.5 億美元，上下浮動 5,000 萬美元。

This includes an approximately $70 million revenue reduction due to the near-term risks with -- associated with the coronavirus.

這包括與冠狀病毒相關的近期風險而導致的約 7000 萬美元的收入減少。

And as I said earlier, we expect to reduce channel inventory again but to a much lesser degree than in the first quarter.

正如我之前所說，我們預計將再次減少通路庫存，但幅度比第一季小得多。

At the midpoint of $1.35 billion, we expect B2B revenue in the aggregate to increase mid- to high single digits sequentially with growth across all of our B2B markets of industrial, automotive and communications.

在 13.5 億美元的中點，我們預計 B2B 總收入將隨著工業、汽車和通訊等所有 B2B 市場的成長而連續成長中高個位數。

Based on the midpoint of guidance, op margin is expected to be up sequentially to approximately 37.5%.

根據指導中位數，營運利潤率預計將連續上升至約 37.5%。

We are planning for our tax rate to be between 10% and 12% for the quarter, and we are improving our fiscal 2020 outlook to between 11% and 13%.

我們計劃將本季的稅率控制在 10% 至 12% 之間，並將 2020 財年展望提高至 11% 至 13% 之間。

Based on these inputs, adjusted EPS is expected to be $1.10, plus or minus $0.08.

根據這些投入，調整後每股收益預計為 1.10 美元，上下浮動 0.08 美元。

While we are mindful of the uncertainty around this, I echo Vince's optimism.

雖然我們注意到這方面的不確定性，但我同意文斯的樂觀態度。

We are encouraged by near-term trends that point to a stabilization and improvement across end markets, and we are extremely confident in the long-term growth opportunities for ADI.

我們對終端市場穩定和改善的近期趨勢感到鼓舞，我們對 ADI 的長期成長機會充滿信心。

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

現在讓我將其返回給邁克以開始我們的問答。

Thanks, Prashanth.

謝謝，普拉珊特。

Okay.

好的。

Let's get to our Q&A session.

讓我們進入問答環節。

(Operator Instructions) Operator, can we have our first question, please?

（接線生指示）接線員，我們可以問第一個問題嗎？

(Operator Instructions) And our first question comes from Vivek Arya from Bank of America.

（操作員說明）我們的第一個問題來自美國銀行的 Vivek Arya。

This is Jamie Zakalik on for Vivek.

我是傑米·扎卡利克 (Jamie Zakalik)，代表維韋克 (Vivek) 發言。

So similar to peers, you guys noted some stabilizing and improving trends in end markets in the January quarter, but it seems that growth has actually decelerated across all the end markets.

與同業類似，你們注意到一月份季度終端市場出現了一些穩定和改善的趨勢，但似乎所有終端市場的成長實際上都在減速。

So I guess are the improving trends more in the -- in February, even with a lot of these virus headwinds?

所以我想，即使有許多病毒逆風，二月的改善趨勢是否更多？

And is it specific to any end market or geography?

它是否特定於任何終端市場或地區？

Or is it more broad-based?

或者它的基礎更廣泛？

Yes.

是的。

So Jamie, I think the first quarter was in line with what we expected.

傑米，我認為第一季符合我們的預期。

So there was deceleration going into the first quarter.

因此，第一季出現了減速。

Now remember that in this quarter we undershipped the channel.

現在請記住，本季我們的通路出貨量不足。

And as I said in my prepared comments, we undershipped by $40 million.

正如我在準備好的評論中所說，我們的出貨量少了 4000 萬美元。

So on a revenue rec basis, [PO] ship in was $40 [billion] below sell-through.

因此，根據收入記錄，[PO] 出貨量比銷售收入低 400 億美元。

As we go into the second quarter, orders were improving over the course of the first quarter, and we expect that to continue into the second quarter with this note that we made on a disruption in China where we believe some of this demand is going to get pushed out to future quarters.

當我們進入第二季度時，第一季的訂單量正在改善，我們預計這種情況將持續到第二季​​度，我們在中國的供應中斷的情況下做出了這一說明，我們認為部分需求將被推到未來幾季。

So I do think that our view here is that we've sort of bottomed out and it gets better from here through subsequent quarters.

因此，我確實認為我們的觀點是我們已經觸底，並且在接下來的幾個季度中情況會變得更好。

Yes.

是的。

Maybe I can add a little bit of color as well from a market perspective on that.

也許我還可以從市場的角度為此添加一點色彩。

So what we're seeing is -- in spite of what looks like a delayed 5G employment -- deployment in China, in the second quarter, we're expecting growth, actually quite good growth, in our communications 5G sector as well as wireline.

因此，我們看到的是，儘管中國的 5G 部署看起來有所延遲，但我們預計第二季度我們的通信 5G 行業以及有線行業將出現增長，實際上增長相當不錯。 。

And that growth is becoming a little more broad-based.

而這種成長的基礎正在變得更加廣泛。

We're seeing, I would say, green shoots in the factory automation and process control side of things as well, which is a significant part of ADI's industrial business, and also gathering strength in the ATE sector.

我想說，我們在工廠自動化和製程控制方面也看到了萌芽，這是 ADI 工業業務的重要組成部分，並且也在 ATE 領域積累力量。

And from an automotive standpoint, we're seeing particular strength in our business in America as well as Europe at this point in time.

從汽車的角度來看，我們目前在美國和歐洲的業務尤其強勁。

And our next question comes from Tore Svanberg from Stifel.

我們的下一個問題來自 Stifel 的 Tore Svanberg。

Yes.

是的。

Vince, I was hoping you could elaborate a little bit more there on 5G.

Vince，我希望您能詳細闡述 5G。

You said it's becoming a more broad-based business.

你說它正在成為一項基礎更廣泛的業務。

Just trying to understand geographically where the growth is coming from, because, obviously, it's not coming from China near term.

只是想從地理上了解成長來自哪裡，因為很明顯，短期內它不會來自中國。

So if you could elaborate on that, that'd be great.

因此，如果您能詳細說明這一點，那就太好了。

Well, I think, Tore, China has taken a pause.

好吧，我認為，托雷，中國已經暫停了。

Asia is still, at this point in time, in terms of deployments today, Asia is by far the strongest in 5G.

目前，就目前的部署而言，亞洲仍然是迄今為止 5G 領域最強的。

I think what we're seeing is the -- probably a faster roll off in 4G than we had anticipated.

我認為我們所看到的是 4G 的下降速度可能比我們預期的要快。

5G has taken a bit of a pause in China but is set -- based on what we see in terms of demand, is set for a ramp during the second quarter.

5G 在中國已經暫停了一段時間，但根據我們對需求的觀察，5G 將在第二季度實現成長。

And also, I pointed out that wireline for ADI in general, whether it's data center, whether it's metro or long-haul networks, is doing quite well.

而且，我還指出，ADI 的有線業務總體而言，無論是資料中心、城域網路還是長途網絡，都表現得相當不錯。

So as we've come into the second quarter, our book-to-bill has been -- is well above 1, and that gives us the confidence in the growing strength of that business through the second quarter here.

因此，當我們進入第二季度時，我們的訂單出貨比一直遠高於 1，這讓我們對該業務在第二季度不斷增長的實力充滿信心。

Sorry.

對不起。

Do you have a follow-up?

你有後續行動嗎？

Yes.

是的。

Just a quick one.

只是快一點。

Prashanth, you did a good job lowering channel inventory.

Prashanth，你在降低渠道庫存方面做得很好。

It sounds like you're going to lower a bit more again this quarter.

聽起來您本季將再次降低一點。

Could you maybe give us some targets either by weeks or what dollar amount are you trying to lower than buy?

您能給我們一些幾週的目標嗎？或者您想以低於多少美元的價格購買？

Well, I think, Tore, we had mentioned in the -- in our first quarter -- or fourth quarter call that our goal was to get back to our target range by the end of the second quarter.

好吧，我想，托爾，我們在第一季或第四季的電話會議中提到，我們的目標是在第二季末回到我們的目標範圍。

It may take us a little bit longer now given we didn't include the impact of the coronavirus in the top line.

鑑於我們沒有將冠狀病毒的影響納入頂線，我們現在可能需要更長的時間。

So we're still heading towards the same channel inventory target that we'd had before but with a bit of a softer top line.

因此，我們仍然朝著與之前相同的通路庫存目標前進，但營收有所下降。

I think it might actually be end of third quarter before we're back in range.

我認為實際上可能要到第三季末我們才會回到正常範圍。

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。

Your automotive business was down 16% in the quarter, which was in line with your guidance.

本季您的汽車業務下降了 16%，這與您的指導一致。

But relative to peers, a little worse on a year-over-year basis.

但與同行相比，年比略差一些。

Vince and Prashanth, you guys talked about your optimism around some of the design win activities in BMS and infotainment.

Vince 和 Prashanth，你們談到了對 BMS 和資訊娛樂領域的一些設計獲勝活動的樂觀態度。

But in the near term, what's driving kind of the double-digit decline in your automotive business?

但在短期內，是什麼原因導致您的汽車業務出現兩位數下滑？

Is that obviously channel inventory reduction?

這明顯是通路庫存減少嗎？

Or are you losing share?

或者你正在失去份額？

I guess, more importantly, how are you guys thinking about kind of the through-cycle growth rate for our automotive business over the next couple of years?

我想，更重要的是，你們如何看待未來幾年我們汽車業務的整個週期成長率？

Yes.

是的。

Well, look, we have been very, very clear.

嗯，看，我們已經非常非常清楚了。

The 2 growth drivers for ADI in the automotive sector are the infotainment area, A2B, active noise cancellation, audio signal processing in general.

ADI 在汽車領域的兩大成長動力是資訊娛樂領域、A2B、主動噪音消除和一般音訊訊號處理。

And of course, BMS has been over the last couple of years, a double-digit growth driver for ADI.

當然，BMS 在過去幾年中一直是 ADI 兩位數成長的推動力。

I think in the quarter just passed, BMS, which has a route -- a strong route in China that suffered as a result of the virus.

我認為在剛剛過去的這個季度，百時美施貴寶有一條路線——一條在中國的強大路線，但因病毒而遭受損失。

And -- but when we look into the second quarter, we expect our -- as I said, our second quarter has better trends in North America and Europe.

而且，當我們展望第二季度時，我們預計，正如我所說，我們的第二季度在北美和歐洲有更好的趨勢。

So we're expecting modest growth in the second quarter.

因此，我們預計第二季將出現溫和成長。

The headwind for ADI has really been the safety sector where our 24-gigahertz radar technology is declining, probably at a rate a little faster than I had expected.

ADI 的逆風實際上是安全領域，我們的 24 GHz 雷達技術正在下降，下降速度可能比我預期的要快一些。

And also in the area of MEMS, more of the kind of the passive safety MEMS where we withdrew investment 3 or 4 years ago.

還有MEMS領域，更多的是被動安全MEMS，我們三、四年前就撤了投資。

So I think we'll begin to bottom out, I think, on those headwinds, specific to safety.

因此，我認為我們將開始觸底反彈，我認為，針對這些不利因素，特別是安全方面的不利因素。

We have a new safety modality in 77 gigahertz, which is, by all accounts, very, very exciting for our customers.

我們擁有 77 GHz 的新安全模式，從各方面來看，這對我們的客戶來說非常非常令人興奮。

We will see bottoming, I think, of the MEMS and the 24-gigahertz radar decline.

我認為，我們將看到 MEMS 和 24GHz 雷達的衰退觸底。

So my sense is in the areas we've picked of powertrain, infotainment, we're very, very well positioned to grow those sectors over the next 2, 3, 4 years.

所以我的感覺是，在我們選擇的動力系統、資訊娛樂領域，我們非常非常有能力在未來 2、3、4 年發展這些領域。

And our next question comes from Ambrish Srivastava from BMO.

我們的下一個問題來自 BMO 的 Ambrish Srivastava。

Prashanth, I had a question on the actual weeks of channel inventory, and I might have missed it, but did you give an actual number?

Prashanth，我有一個關於渠道庫存實際週數的問題，我可能錯過了，但你給出了實際數字嗎？

I think you were 8.5 weeks in the prior quarter.

我認為上一季的工作時間為 8.5 週。

We did not give a number, Ambrish.

我們沒有給出具體數字，安布里什。

The -- what I mentioned is we took the channel inventory down $40 million.

我提到的是我們將渠道庫存減少了 4000 萬美元。

But if you do the math, we're still going to be above our target range because the revenue -- the numerator has moved, but the denominator has also shrunk.

但如果你算一下，我們仍然會高於我們的目標範圍，因為收入——分子發生了變化，但分母也縮小了。

So on a ratio standpoint, the weeks are still high, but we did take a big chunk out, and we're going to take more out in Q2, as we mentioned.

因此，從比率的角度來看，幾週的比率仍然很高，但我們確實採取了很大一部分措施，正如我們所提到的，我們將在第二季採取更多措施。

Do you have a follow-up, Ambrish?

安布里什，你有後續嗎？

I did.

我做到了。

Vince, maybe for you.

文斯，也許適合你。

In 2 areas, real quick on industrials.

在兩個領域，工業發展速度非常快。

What's the right way to think about, given what's going on in China and broader, how to think about return to growth in the industrials business?

考慮到中國乃至更廣泛的情況，如何思考工業業務恢復成長的正確方法是什麼？

You guys outperformed last year, but what -- how should we think about year-over-year growth returning?

你們去年的表現優於去年，但我們該如何看待同比成長的回歸？

And then in comms, we always ask you about wireless.

然後在通訊中，我們總是詢問您有關無線的問題。

I had a slightly different question.

我有一個稍微不同的問題。

How is -- how are you guys positioned in wireline versus if you look back at 2, 3 years ago?

與 2、3 年前相比，你們在有線領域的定位如何？

And then what gets you excited about the design wins in -- that should be ramping out in wireline?

那麼，是什麼讓您對設計勝利感到興奮——這應該在有線線路中逐步推廣？

Thanks, Ambrish.

謝謝，安布里什。

Let me try and address the industrial question first.

讓我先嘗試解決工業問題。

So we are seeing our aerospace and defense business continue to grow at double-digit rates annually.

因此，我們看到我們的航空航太和國防業務每年繼續以兩位數的速度成長。

We are seeing, as I said a little earlier on, the factory automation side of things outside of Asia is on a, I'd say, a solid improvement in its demand pattern.

正如我之前所說，我們看到亞洲以外的工廠自動化方面的需求模式正在穩步改善。

I think inventory hangover has largely been taken out of the equation in the industrial sector.

我認為工業部門的庫存拖累已基本消除。

So I think when you look -- when we look at the impact of the virus in China, we're not expecting really anything in the industrial sector in terms of shipments there for the month of February.

因此，我認為，當我們審視該病毒對中國的影響時，我們並沒有真正預期工業部門 2 月的出貨量會發生什麼變化。

But all that said, we're -- we have a very solid book-to-bill in the industrial sector, and we will get, I think, a decent increase in our top line in industrial during the second quarter.

但話雖如此，我們在工業領域擁有非常穩定的訂單出貨比，我認為，第二季我們的工業收入將出現可觀的成長。

On the wireline side of things, our game there is really 2 pieces.

在有線方面，我們的遊戲實際上有 2 個部分。

We have a very strong -- we have a strong leadership position in optical control systems for data centers.

我們在資料中心的光控制系統方面擁有非常強大的領導地位。

So all of the FANGs, for example, would use our technology in their data centers for control of the optical signal chain and also the cable market.

例如，所有 FANG 都會在其資料中心使用我們的技術來控制光訊號鏈以及電纜市場。

We have a good position there in infrastructure systems.

我們在基礎設施系統方面擁有良好的地位。

So wireline business has been growing high single digits now for several years, and I don't see any decline in that.

因此，有線業務多年來一直以高個位數成長，而且我認為沒有任何下降。

I think that will be a decent growth driver for ADI.

我認為這將成為 ADI 的一個不錯的成長動力。

It runs into the region of $400 million annually in terms of sales at the present time.

目前，其年銷售額約為 4 億美元。

So I view that very much, Ambrish, as a tailwind for the company.

因此，安布里什，我非常認為這是公司的順風車。

Yes.

是的。

Let me also add on the industrial side, we did take down general inventory meaningfully.

我還要補充一點，在工業方面，我們確實有意義地降低了一般庫存。

A lot of that relates to industrial.

其中很多都與工業有關。

And if you look at industrial, you kind of zoom out and you look at it on a trailing 12-month basis, we're only down low single digits, which is a pretty good performance in a tough macro backdrop, and that goes to the diversity of that business.

如果你看一下工業，你會縮小並以過去 12 個月為基礎來觀察，我們只下降了低個位數，這在嚴峻的宏觀背景下是一個相當不錯的表現，這將導致該業務的多樣化性。

Our next question comes from Mitch Steves from RBC Capital Markets.

我們的下一個問題來自 RBC 資本市場的 Mitch Steves。

Great quarter.

很棒的季度。

But I just wanted to clarify a couple of things.

但我只是想澄清一些事情。

I think you guys have done a very good job now kind of talking about your capital allocation, but what I'm having a hard time understanding is kind of the margin mix here.

我認為你們現在在談論資本配置方面做得非常好，但我很難理解這裡的利潤組合。

I realize that space and satellite is probably higher margin.

我意識到太空和衛星的利潤率可能更高。

I'm guessing like 80%, 90% gross margin.

我猜毛利率大概是80%、90%。

You guys are actually coming down a bit on the gross margin line.

你們的毛利率實際上有所下降。

Can you maybe talk us through what the gross margin profile should look like in the first half and the second half?

您能否向我們介紹上半年和下半年的毛利率狀況？

And then how that would flow through the operating margin line as well?

那麼這將如何流經營業利潤線呢？

Sure.

當然。

Yes.

是的。

Thanks for the question, Mitch.

謝謝你的提問，米奇。

So I guess, a little bit of background, right?

所以我想，有一點背景，對吧？

Our model is 70% gross margins sort of long-term model.

我們的模型是 70% 毛利率的長期模型。

And in good times, we were operating at 72%.

在經濟好的時候，我們的營運率為 72%。

In more challenging times, like now, we're down in the high 60s.

在更具挑戰性的時期，例如現在，我們的水準已經下降到了 60 多歲。

So through the cycle, 70%.

所以透過這個循環，70%。

As we move forward from here, we see 2 things that are going to be impacting margins, both utilization and mix.

當我們從這裡繼續前進時，我們看到有兩件事將影響利潤，即利用率和組合。

So Q1 represented the trough level of our utilization expectations for the year.

因此，第一季代表了我們今年利用率預期的低谷水準。

So a fair amount of under absorption in our internal manufacturing facilities, that gets better from here on, and that will be tailwind to margins.

因此，我們內部製造設施的吸收不足，從現在開始會有所改善，這將有利於利潤率。

And also as some of the questions that were asked, Vince mentioned the strength in industrial.

在被問到的一些問題中，文斯提到了工業的實力。

We expect industrial to continue to be growing as we move forward.

我們預計，隨著我們的前進，工業將繼續成長。

And industrial, in general, is one of our highest margin businesses, so that will also provide tailwind.

一般來說，工業是我們利潤率最高的業務之一，因此這也將提供推動力。

So we -- I would expect that you could see sequential improvement in gross margins through the balance of this year likely getting back to our model margins in the second half, maybe towards the end of the year.

因此，我希望您可以看到今年剩餘時間毛利率的連續改善，可能會在下半年（也許到年底）恢復到我們的模型利潤率。

Okay.

好的。

That's very helpful.

這非常有幫助。

And then I just have one follow-up.

然後我只有一個後續行動。

Just in terms of the seasonality for the business.

僅就業務的季節性而言。

I think maybe you should probably be taking a little bit of a more conservative view in April just because it sounds like China is going to open up March 1. But when I look at the July quarter going from April to July, should that be, I guess, above seasonal given that April is depressed from all the macro items that are going on?

我想也許你應該在 4 月採取更保守的觀點，因為聽起來中國將在 3 月 1 日開放。但是當我看看從 4 月到 7 月的 7 月季度時，應該是這樣嗎？我想，考慮到4 月所有宏觀項目都處於低迷狀態，是否高於季節性？

All right.

好的。

So the guide for our second quarter included a $70 million adjustment that we made at the top for the impact of the coronavirus.

因此，我們第二季的指南包括我們針對冠狀病毒的影響在頂部進行的 7000 萬美元的調整。

And the math that we use to arrive at that is we essentially zeroed out February in China for industrial and auto and consumer, and then we also made an adjustment for communications being pushed -- or the deployment of 5G being pushed out a bit just because of the labor challenges that are going on there.

我們用來得出這一結論的數學是，我們基本上將2 月份中國的工業、汽車和消費者業務歸零，然後我們還對通信的推進進行了調整，或者說5G 的部署被推遲了一點，因為那裡正在發生的勞動挑戰。

We expect that to begin unwinding in the subsequent months and certainly be back to normal in the third quarter.

我們預計這種情況將在接下來的幾個月中開始緩解，並且肯定會在第三季恢復正常。

Could it be above normal?

會不會高於正常水平？

That's certainly a possibility.

這當然是有可能的。

It depends on the timing of how that $70 million comes back.

這取決於這 7000 萬美元如何收回的時間。

It's our current view that, that is purely a timing shift that, that is not lock demand.

我們目前的觀點是，這純粹是一個時間轉變，而不是鎖定需求。

But as to when that falls back in, it's hard to say, but the order activity certainly suggests that it's not going away.

但至於這種情況何時回落，很難說，但訂單活動肯定表明這種情況不會消失。

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 wanted to zero in first on comm.

我想先將通訊歸零。

So it sounds like you're pushing it out.

所以聽起來你正在把它推出去。

Your prior guidance for comm last year was for it to grow year-over-year, and it feels like you're backing away from that.

去年你之前對通訊的指導是讓它逐年成長，但感覺你正在放棄這個目標。

But the trajectory in the second half on the old guidance was for very strong sequential growth kind of every quarter going forward.

但按照舊指引，下半年的軌跡是未來每季都非常強勁的連續成長。

How should we be thinking about the trajectory of comm in the second half, I guess, given, I guess, the bump in Q2 versus the profile that was -- that you had in mind 3 months ago when you gave guidance?

我想，考慮到第二季度的成長與您 3 個月前提供指導時所想到的情況相比，我們應該如何考慮下半年通訊的發展軌跡？

Do you still expect to see a similar ramp maybe just off a lower base?

您是否仍然期望看到類似的坡道可能只是在較低的基礎上？

Yes.

是的。

So I guess a few things, Stacy.

所以我猜想一些事情，史黛西。

For the first quarter, a little bit lower than we expected, mainly due to the 5G pause that started in the second half of '19.

第一季略低於我們的預期，主要是由於 19 年下半年開始的 5G 暫停。

Moving into the second quarter, orders have begun to come back in very much as we expected, and our book-to-bill is above 1. So that's supporting a strong sequential increase in second quarter for both 5G, but also as Vince mentioned, we're seeing some good strength in wireline as has been reported by a number of peers as well.

進入第二季度，訂單開始恢復，與我們的預期非常吻合，我們的訂單出貨比高於 1。因此，這支持了 5G 第二季度的強勁連續增長，而且正如 Vince 提到的，正如許多同行所報告的那樣，我們看到有線線路具有良好的實力。

The sequential increase is below our initial expectations because of the -- a lot of that was related to 5G timing in China.

環比增幅低於我們最初的預期，因為其中很大一部分與中國的 5G 時機有關。

So I think everything is moving a little bit to the right here.

所以我認為這裡一切都有點向右移動。

So it's hard for us to say at this point whether the timing of that recovery is still going to put us up year-on-year, but I think we'll have to see how quickly this demand recovers and whether the installations happen as -- is it caught up in the year or not?

因此，目前我們很難說復甦的時機是否仍會讓我們同比增長，但我認為我們必須看看需求恢復的速度有多快，以及安裝是否會按以下方式進行： - 是否趕上了這一年？

But we feel very good that this is really a dislocation of demand versus actual loss or destruction.

但我們感到非常高興，這確實是需求與實際損失或破壞的錯位。

Yes.

是的。

I'll tell you one other comment on that, Stacy.

我會告訴你對此的另一條評論，史黛西。

Our optimism about what's happening in America relating to 5G has strengthened over the past quarter as well.

我們對美國 5G 相關情況的樂觀態度在過去一個季度也有所增強。

So yes, we have the disruption in China.

所以，是的，我們在中國遇到了混亂。

It's really a delay of demand rather than destruction.

這實際上是需求的延遲而不是破壞。

But my own sense is that we probably see more activity at the back end of the year in the U.S. relating to 5G.

但我個人的感覺是，今年年底我們可能會在美國看到更多與 5G 相關的活動。

So it sounds like also, even though we have the delay because of coronavirus in China, that the order patterns still seem to be very strong.

所以聽起來，儘管我們因為中國的冠狀病毒而延誤，但訂單模式似乎仍然非常強勁。

How do we think about the strength of those Chinese orders in relation to potential increases in sanctions that we've been hearing about?

我們如何看待這些中國訂單的強度與我們所聽到的製裁可能增加的關係？

Do you feel like there's any sort of scramble on the part of Chinese customers to get out in front of those sanctions?

您是否認為中國客戶會採取某種方式來擺脫這些制裁？

I guess what are you seeing in terms of customer behavior in relation to the regulatory?

我想您對與監管相關的客戶行為有何看法？

Yes.

是的。

I think, first off, when you look at the geopolitical machinations, it's actually very hard to figure out what's going on.

我認為，首先，當你審視地緣政治陰謀時，實際上很難弄清楚到底發生了什麼事。

So -- but I think with our business in general, we have many thousands of customers in China, many thousands of product SKUs, and we see ongoing demand.

所以，但我認為，就我們的整體業務而言，我們在中國擁有數千名客戶、數千個產品 SKU，並且我們看到了持續的需求。

There are obviously areas where we are restricted, particularly in 5G, but I think the rest of our business right now is in a kind of a normalized market and regulatory situation.

顯然我們在某些​​領域受到限制，特別是在 5G 領域，但我認為我們的其他業務目前處於正常化的市場和監管狀況。

So the demand we're seeing is -- despite the disruption here because of the virus, the demand in China is actually quite strong across the board otherwise.

因此，我們看到的需求是——儘管這裡因病毒而受到干擾，但除此之外，中國的整體需求實際上相當強勁。

Let me rephrase the question.

讓我重新表達一下這個問題。

If, all of a sudden, like the de minimis threshold gets dropped from 25% to 10% and the foreign direct products will get strengthened, and they put more stuff on the controllers, does that impact how you guys view the trajectory in China as we go through the year?

如果突然之間，最低限度門檻從 25% 降至 10%，外國直接產品將得到加強，他們在控制器上投入更多的東西，這是否會影響你們對中國發展軌蹟的看法我們度過了這一年？

Would you have to reevaluate what you can ship and what you can't?

您是否需要重新評估什麼可以運送，什麼不能運送？

Well, yes, we would have to reevaluate.

嗯，是的，我們必須重新評估。

But remember that we have adjusted one large communications customer down from traditional mid-single to low single-digit as a percentage of revenue.

但請記住，我們已將大型通訊客戶佔收入的比例從傳統的中個位數調整為低個位數。

So that is kind of -- that's the limit of our exposure depending on what happens to that particular customer.

所以這就是我們的暴露極限，取決於特定客戶發生的情況。

Yes.

是的。

I think it very much depends on the scope of what happens.

我認為這很大程度上取決於所發生事件的範圍。

And so far, everything we've seen is relating to one specific area of communication.

到目前為止，我們所看到的一切都與某一特定的溝通領域有關。

So unknown, Stacy, but we'll see.

史黛西，這還未知，但我們拭目以待。

Time will tell.

時間會證明一切。

And our next question comes from Craig Hettenbach from Morgan Stanley.

我們的下一個問題來自摩根士丹利的克雷格·赫滕巴赫。

Just wanted to follow on the comments about the opportunity to double Linear's growth in the coming years.

只是想跟進未來幾年線性成長機會翻倍的評論。

And Prashanth, if you could talk about -- I know there's some gross margin levers as you consolidate manufacturing and just kind of how you're dealing on that in terms of the growth profile versus kind of margins for Linear in the next couple of years.

Prashanth，如果你能談談——我知道，當你整合製造時，會有一些毛利率槓桿，以及你如何處理線性公司未來幾年的成長狀況與利潤率方面的問題。

Sure, sure.

一定一定。

So I'll take the margin side of it.

所以我會採取它的邊緣部分。

And then in terms of doubling the growth, I'll let Vince comment.

然後，關於增長一倍的問題，我將讓文斯發表評論。

On the margin side of it, we have talked about the focus we've got on shutting down 2 facilities.

在邊際方面，我們已經討論了我們重點關閉兩個設施。

We've taken -- we've made announcements on those.

我們已經就這些問題發布了公告。

We've actually been able to accelerate some of the savings for the -- for one of the factory closures, so we're going to start seeing some of that benefit in cost of goods sale at the end of this year.

實際上，我們已經能夠加速關閉其中一家工廠的一些節省，因此我們將在今年年底開始看到商品銷售成本的一些好處。

But the balance of that $100 million, we see feathering in over 2021.

但我們預計到 2021 年，這 1 億美元的餘額將會逐漸減少。

And as we've stated in the Q4 earnings call, our intention is to let -- to kind of let all of that come through the bottom line.

正如我們在第四季財報電話會議中所說，我們的目的是讓所有這些都獲利。

So we are not -- we're not looking to redeploy that cost of goods savings.

所以我們不打算重新部署節省下來的商品成本。

So you should see some lift in our gross margins on an ongoing basis as we exit 2020 and through 2021.

因此，隨著我們退出 2020 年並持續到 2021 年，您應該會看到我們的毛利率持續有所提升。

In terms of kind of the progress we're making to double that Linear growth rate, let me hand that off to Vince.

至於我們在線性成長率翻倍方面取得的進展，讓我把它交給文斯。

Yes.

是的。

So I think we're making good progress, Craig, in trying to equalize the value of the kind of legacy ADI mixed-signal technology value in a given application with power.

因此，克雷格，我認為我們在嘗試平衡給定應用中傳統 ADI 混合訊號技術的價值與功能方面取得了良好進展。

So we're looking for equivalents.

所以我們正在尋找等價物。

For every dollar of mixed signal, we expect to get $1 of power.

對於每 1 美元的混合訊號，我們期望獲得 1 美元的電力。

And that's what the market opportunity available is.

這就是可用的市場機會。

I can tell you that our pipeline for the LTC portfolio, and specifically power, is up about 40% actually year-over-year.

我可以告訴你，我們的 LTC 產品組合（特別是電力）的管道實際上比去年同期增長了約 40%。

And we're moving into production down the automotive sector, the communication wireless sector.

我們正在進入汽車產業、無線通訊產業的生產。

Wired, we're in early volume production as well.

《連線》，我們也處於早期批量生產階段。

So we expect to see those areas ramp in terms of meaningful impact on the top line during 2021.

因此，我們預計這些領域將在 2021 年對營收產生有意義的影響。

And there are many, many, many new sockets in the industrial area that we're working on.

我們正在開發的工業領域有很多很多新的插座。

So that will just take a little longer given the slower uptake in terms of turning design-ins to revenue.

因此，考慮到將設計轉化為收入的速度較慢，這將需要更長的時間。

But I think a lot like Hittite.

但我覺得很像赫梯。

We feel -- we went through this process with Hittite.

我們覺得──我們和赫梯一起經歷了這個過程。

We've doubled the size of that company, that franchise over the last 5 years.

在過去的五年裡，我們將該公司的規模、特許經營權擴大了一倍。

And I think we're on a very good track right now with LTE to achieving 200, 300 basis points of top line growth based on the strength of the portfolio and the activity at the customer level that we're seeing.

我認為，根據我們所看到的產品組合的實力和客戶層面的活動，我們目前在 LTE 方面正處於非常好的軌道上，可以實現 200、300 個基點的營收成長。

Our next question comes from Harlan Sur from JPMorgan.

我們的下一個問題來自摩根大通的 Harlan Sur。

Good to see the fundamentals starting to improve here.

很高興看到這裡的基本面開始改善。

A&D grew greater than 20% last year.

A&D 去年成長超過 20%。

Defense budget was approved beginning of this year.

國防預算於今年初獲得批准。

It's strong, up 4% versus last year.

表現強勁，比去年增長了 4%。

It's -- and you guys expect double-digit -- continued double-digit year-over-year growth here this year in A&D.

今年，航空與航太領域將繼續實現兩位數的年成長，你們預計將實現兩位數成長。

Is most of the strength coming from the defense segment?

大部分力量來自防守部分嗎？

Or are there also programs in the commercial aerospace SATCOM sector that are starting to fire as well?

或者商業航太衛星通訊領域是否也有一些計畫也開始火起來？

Yes.

是的。

As I said in the prepared remarks, obviously, defense budgets are in our favor in terms of buying technology and deploying it.

正如我在準備好的演講中所說，顯然，國防預算在購買技術和部署技術方面對我們有利。

So we're in good shape there.

所以我們在那裡狀況良好。

And yes, we're seeing strong double-digit growth in the space area as well.

是的，我們在太空領域也看到了兩位數的強勁成長。

And that's relatively -- we've had a good position there.

這是相對的——我們在那裡佔據了一個很好的位置。

But the -- if you like, the explosion in the launch of LEO satellites and geo satellites is really increasing demand for the company.

但是，如果你願意的話，低地球軌道衛星和地球同步衛星的爆炸性發射確實增加了對該公司的需求。

And we're looking at, in these in these applications, many thousands of dollars of content per satellite kind of thing.

我們正在研究這些應用程式中每顆衛星的內容價值數千美元。

So we're very optimistic about that, but it's a combination of both.

所以我們對此非常樂觀，但這是兩者的結合。

Both parts of that business are really growing well.

該業務的兩個部分都增長良好。

Harlan, I would say, remember, think about defense as when DoD gives the money to the primes and the primes start deploying it, this is going into design decisions that were made many years ago.

哈倫，我想說，記住，想想國防，當國防部向總理提供資金並且總理開始部署它時，這將進入多年前製定的設計決策。

So we are -- we're enjoying the flow of that larger budget into the primes.

所以我們——我們正在享受更多預算流入黃金市場。

And then to us, for decisions that were made some time ago, we still have quite a bit of great design activity that has yet to be funded.

然後對我們來說，對於前一段時間所做的決定，我們仍然有相當多的優秀設計活動尚未獲得資助。

So that starts to come.

那麼這一切就開始發生了。

On the aerospace side, it's holding as well as can be expected given the environment that's going on there.

在航空航天方面，考慮到那裡正在發生的環境，它的表現也符合預期。

And then in space, as Vince mentioned, space is really in front of us.

然後在太空中，正如文斯所提到的，太空確實就在我們面前。

That growth is in front of us.

這種增長就在我們面前。

So while ADEF has been growing at a nice clip and continues to, we feel even more optimistic about what's in front of us coming both from space and future design win activity that's happened for the defense business.

因此，雖然 ADEF 一直在以良好的速度成長並將繼續成長，但我們對我們面前的太空和國防業務未來設計獲勝活動感到更加樂觀。

And our last question comes from William Stein from SunTrust.

我們的最後一個問題來自 SunTrust 的 William Stein。

2 of them, really.

其中2個，真的。

First, I'm hoping you can provide some update or commentary as to the competitive situation and maybe the legal competitive situation with an FPGA supplier in high-performance converters, maybe competitive trends as to design win traction relative to that vendor.

首先，我希望您能提供一些關於競爭狀況的最新資訊或評論，也許是與高效能轉換器中 FPGA 供應商的合法競爭狀況，也許是設計相對於該供應商贏得吸引力的競爭趨勢。

Well, broadly speaking, in terms of competition, we are -- we've outgrown our closest competitors for the last 3 years.

嗯，從廣義上講，就競爭而言，我們在過去三年中已經超越了最接近的競爭對手。

And so we're clearly gaining share across the board in communications and industrial, in particular.

因此，我們顯然正在全面獲得份額，特別是在通訊和工業領域。

So I think competitively, we're in good shape.

所以我認為從競爭角度來說，我們的狀態很好。

I think pricing is very, very stable as well.

我認為定價也非常非常穩定。

So I think overall, legacy, strong.

所以我認為整體而言，遺產是強大的。

Our design pipeline is strong.

我們的設計管道很強大。

And we're excited about the new R&D programs as well that are coming to fruition for the company.

我們也對公司即將取得成果的新研發計畫感到興奮。

In relation to the litigation with, as you said, a large FPGA company, we will give you -- as new information emerges, we'll be transparent with you, and we'll communicate with you.

正如您所說，關於與一家大型 FPGA 公司的訴訟，我們將為您提供——隨著新資訊的出現，我們將對您保持透明，我們將與您溝通。

But at this point, all I can say is that we're confident that this matter is going through the court and be successfully resolved.

但此時此刻，我只能說，我們有信心這件事能夠透過法庭審理並且成功解決。

And we are defending our IP very aggressively, and we believe we have a very, very strong case.

我們正在非常積極地捍衛我們的智慧財產權，我們相信我們有一個非常非常強大的理由。

So that's where it is.

這就是它所在的地方。

It's within the courts, but we're very optimistic with how things are going.

這是在法庭內進行的，但我們對事情的進展非常樂觀。

You said you had a follow-up, Will?

你說你有後續行動，威爾？

Yes.

是的。

I appreciate that.

我很感激。

Just on the COVID impact.

只是關於新冠疫​​情的影響。

It sounds like what you're saying is that you're assuming certain orders are 0 for February.

聽起來您的意思是假設 2 月份的某些訂單為 0。

Given we're February 19th, I assume that's actually what you're seeing in the order book.

鑑於現在是 2 月 19 日，我想這實際上就是您在訂單簿中看到的情況。

Is there any anticipation for weakness later in the quarter?

是否預計本季晚些時候會出現疲軟？

And also, any supply disruption that you're noticing at all?

另外，您注意到任何供應中斷嗎？

Sure.

當然。

So on the orders, as I mentioned in the prepared remarks, it is very hard to kind of size the activity of what's going on in China.

因此，正如我在準備好的發言中提到的那樣，就訂單而言，很難對中國正在發生的活動進行規模評估。

So when we arrived at our $70 million, we wanted to give the investor and analyst community what assumptions are we using, knowing that these are very dynamic.

因此，當我們達到 7000 萬美元時，我們希望向投資者和分析師群體提供我們使用的假設，因為我們知道這些假設是非常動態的。

So for our assumptions, we've taken our China activity to 0 in February and pushed out a little bit of 5G.

因此，根據我們的假設，我們已將 2 月的中國活動降至 0，並推出了一點 5G。

The -- on the supply chain side, we are not seeing much disruption at this standpoint.

- 在供應鏈方面，從這個角度來看，我們沒有看到太多中斷。

We had some of our back-end suppliers early on.

我們很早就有一些後端供應商。

We're struggling just with getting some labor in to run their activity, but that's also been resolved as time has settled out here.

我們正在努力爭取一些勞動力來進行他們的活動，但隨著時間的推移，這個問題也得到了解決。

So from our standpoint, our supply chain -- and we just revalidated this with the guys this morning.

因此，從我們的角度來看，我們的供應鏈——今天早上我們剛剛與這些人重新驗證了這一點。

Our supply chain, we feel good about.

我們的供應鏈，我們感覺良好。

I'll also add, I think it might be helpful, given your question, kind of given our outlook of B2B, what we think each market is going to do because it seems a little bit of confusion out there of how we think the market is going to do.

我還要補充一點，我認為這可能會有所幫助，考慮到你的問題，考慮到我們對 B2B 的前景，我們認為每個市場將會做什麼，因為我們對市場的看法似乎有點混亂將會做。

We think each market grows sequentially.

我們認為每個市場都會依序成長。

We said, in total, B2B will be up mid- to high single digits.

我們說過，整體而言，B2B 業務將實現中高個位數成長。

Our rank order (inaudible), comms is a little better than that.

我們的排名順序（聽不清楚），通訊比這好一點。

Industrial does in line with the overall outlook, and auto does a little bit worse.

工業的表現符合整體前景，汽車的表現稍差一些。

So that kind of helps you think of how the -- sorry, how the corona is impacting our business.

因此，這可以幫助您思考—抱歉，新冠疫情如何影響我們的業務。

And with that, thank you, everyone, for joining us.

在此，感謝大家加入我們。

A copy of the transcript will be available on our website, and all available reconciliations and information can also be found on the quarterly results section of our website.

我們的網站上將提供成績單副本，所有可用的對帳和資訊也可以在我們網站的季度業績部分找到。

Thanks again for joining us and the continued interest in Analog Devices.

再次感謝您加入我們以及對 Analog Devices 的持續關注。

And this concludes today's Analog Devices conference call.

今天的 Analog Devices 電話會議到此結束。

You may now disconnect.

您現在可以斷開連線。