Advanced Energy Industries Inc (AEIS) 2020 Q3 法說會逐字稿

Ladies and gentlemen, thank you for standing by, and welcome to the Advanced Energy Industries Third Quarter 2020 Earnings Conference Call. (Operator Instructions) Please be advised that today's conference is being recorded. (Operator Instructions)

女士們，先生們，感謝你們的支持，歡迎來到 Advanced Energy Industries 2020 年第三季度收益電話會議。 （操作員說明）請注意，今天的會議正在錄製中。 （操作員說明）

I would now like to hand the conference over to your speaker today Mr. Edwin Mok, Vice President of Strategic Marketing and Investor Relations. Thank you. Please go ahead, sir.

我現在想把會議交給今天的演講者，戰略營銷和投資者關係副總裁 Edwin Mok 先生。謝謝。請繼續，先生。

Thank you, operator. Good morning, everyone. Welcome to Advanced Energy's Third Quarter 2020 Earnings Conference Call. With me today are Yuval Wasserman, our President and CEO; Paul Oldham, our Executive Vice President and CFO; and Brian Smith, our Director of Investor Relations. If you have not seen our earnings press release, you can find it on our website at ir.advancedenergy.com. There, you’ll also find a slide presentation to follow along our discussion today.

謝謝你，運營商。大家，早安。歡迎來到 Advanced Energy 2020 年第三季度收益電話會議。今天和我在一起的是我們的總裁兼首席執行官 Yuval Wasserman；我們的執行副總裁兼首席財務官 Paul Oldham；和我們的投資者關係總監 Brian Smith。如果您還沒有看到我們的收益新聞稿，您可以在我們的網站 ir.advancedenergy.com 上找到它。在那裡，您還可以找到幻燈片演示，以跟進我們今天的討論。

Before I begin, I would like to mention that AE will be hosting a virtual investor event on Monday, December 14. We welcome all of you to join us at this event. In addition, we will be participating at multiple investor conferences in the coming months. As events occur, we will make the announcements.

在開始之前，我想提一下 AE 將於 12 月 14 日星期一舉辦一場虛擬投資者活動。我們歡迎大家參加這次活動。此外，我們將在未來幾個月內參加多個投資者會議。當事件發生時，我們將發佈公告。

Let me remind you that today's call contains forward-looking statements, which are subject to risks and uncertainties that could cause actual results to differ materially and are not guarantees for future performance. Information concerning these risks and uncertainties is found in our filings with the SEC. All forward-looking statements are based on management's estimates, projections and assumptions as of today, November 5, 2020. And the company assumes no obligation to update them. Long-term targets present today, which include our aspirational goals and the integration targets should not be interpreted as guidance.

讓我提醒您，今天的電話會議包含前瞻性陳述，這些陳述受風險和不確定因素的影響，可能導致實際結果出現重大差異，並且不是對未來業績的保證。有關這些風險和不確定性的信息可在我們提交給美國證券交易委員會的文件中找到。所有前瞻性陳述均基於管理層截至 2020 年 11 月 5 日的估計、預測和假設。公司不承擔更新這些陳述的義務。今天提出的長期目標，包括我們的理想目標和整合目標，不應被解釋為指導。

On today's call, our financial results will be present on a non-GAAP financial basis unless otherwise specified. An explanation of our non-GAAP financial measures as well as reconciliations between GAAP and non-GAAP measures can be found in today's press release.

在今天的電話會議上，除非另有說明，否則我們的財務業績將以非 GAAP 財務為基礎呈現。在今天的新聞稿中可以找到我們的非 GAAP 財務措施的解釋以及 GAAP 和非 GAAP 措施之間的調節。

With that, let me pass the call to our CEO, Yuval Wasserman. Yuval?

有了這個，讓我把電話轉給我們的首席執行官 Yuval Wasserman。尤瓦爾？

Thank you, Edwin. Good morning, everyone, and thank you for joining us on this call. Overall, this was an outstanding quarter for Advanced Energy with record revenues, earnings and operating cash flow. We delivered sequential revenue growth across all of our market verticals, and recorded new quarterly highs in semiconductor, data center computing and service. Good operating leverage and continued execution on our synergy goals, resulted in gross margins approaching 40% and non-GAAP earnings per share, up over 3x from last year, validating our financial model and demonstrating our ability to accelerate earnings growth.

謝謝你，埃德溫。大家早上好，感謝您加入我們的電話會議。總的來說，對於 Advanced Energy 來說，這是一個出色的季度，收入、收益和運營現金流均創歷史新高。我們在所有垂直市場實現了連續收入增長，並在半導體、數據中心計算和服務領域創下季度新高。良好的經營槓桿和對我們協同目標的持續執行，導致毛利率接近 40%，非 GAAP 每股收益比去年增長 3 倍以上，驗證了我們的財務模型並展示了我們加速盈利增長的能力。

Overall, demand for our products continue to be strong driven by ongoing investments in technologies associated with the data economy, great execution by our operations and supply chain teams enabled us to catch up on COVID-related delays and respond to the burst of demand. During the quarter, we continued to ramp our Malaysia factory, which is next to one of our leading customers, as we integrate and optimize our global operational footprint. It provides us with business continuity and resiliency in meeting our customers' demand in a dynamic operating environment.

總體而言，在與數據經濟相關的技術持續投資的推動下，對我們產品的需求繼續強勁，我們的運營和供應鏈團隊的出色執行使我們能夠趕上與 COVID 相關的延遲並響應需求的激增。在本季度，隨著我們整合和優化我們的全球運營足跡，我們繼續擴建緊鄰我們主要客戶之一的馬來西亞工廠。它為我們提供業務連續性和彈性，以滿足客戶在動態運營環境中的需求。

In addition, we continue to execute on our integration plans, delivering synergies and record accretion from our Artesyn acquisition. We expect additional synergies to be realized through 2021, as we execute structural changes in our manufacturing and supply chain. Beyond cost synergies, we have started to secure new cross-selling design wins across both semiconductor and industrial end markets, and we expect those means to drive incremental revenues in 2021. We continue to invest aggressively in R&D, which enable us to win multiple design wins across all markets and to launch 6 new products across different portfolios during the quarter. These new wins and new offerings are expected to generate continued growth for AE going forward.

此外，我們繼續執行我們的整合計劃，通過收購 Artesyn 實現協同效應和創紀錄的增長。隨著我們對製造和供應鏈進行結構性改革，我們預計到 2021 年將實現額外的協同效應。除了成本協同效應，我們已經開始在半導體和工業終端市場贏得新的交叉銷售設計，我們預計這些方式將在 2021 年推動收入增加。我們繼續積極投資研發，這使我們能夠贏得多項設計贏得了所有市場，並在本季度推出了 6 種不同產品組合的新產品。這些新勝利和新產品預計將為 AE 帶來持續增長。

Turning now to our products and performance by market. As I mentioned, semi revenue was a quarterly record, growing nearly 15% sequentially and over 70% from last year as we continue to meaningfully outperform the market and our semi peers. Service revenue also reached record high, driven by improved fab utilization across multiple regions and strong demand for upgrades and retrofits. We believe process power has become one of the fastest-growing subsystem segments within the semi equipment supply chain.

現在轉向我們的產品和市場表現。正如我所提到的，半導體收入創下季度記錄，環比增長近 15%，比去年增長超過 70%，因為我們繼續顯著優於市場和我們的半導體同行。受多個地區晶圓廠利用率提高以及升級和改造需求強勁的推動，服務收入也創下歷史新高。我們相信過程電源已成為半設備供應鏈中增長最快的子系統部分之一。

As the market leader with the broadest product portfolio, end market and customer exposure, we are gaining market share with design wins for many critical processes. The combination of strong market growth and our share gains are driving our semi revenue to grow faster than all of our semi peers in 2020. For example, our advanced RF matching technologies are getting adopted in multiple advanced etch and deposition process tools, resulting in revenues growing over 120% year-over-year in Q3 after doubling in Q2. Our remote plasma sources revenue grew again this quarter and is on track to double in 2020, resulting in double-digit millions of dollars of incremental revenue. In Q3, we have secured a dielectric etch design win at one of the leading OEM suppliers. And in Korea, we won several designs for memory and advanced packaging deposition applications.

作為擁有最廣泛產品組合、終端市場和客戶接觸的市場領導者，我們正在通過許多關鍵流程的設計勝利贏得市場份額。強勁的市場增長和我們的份額增長相結合，推動我們的半導體收入在 2020 年的增長速度超過我們所有的半導體同行。例如，我們先進的 RF 匹配技術正被多種先進的蝕刻和沈積工藝工具採用，從而帶來收入在第二季度翻了一番之後，第三季度同比增長超過 120%。我們的遠程等離子源收入在本季度再次增長，並有望在 2020 年翻一番，從而帶來兩位數的數百萬美元增量收入。在第三季度，我們贏得了一家領先的 OEM 供應商的電介質蝕刻設計。在韓國，我們贏得了多項針對內存和先進封裝沉積應用的設計。

We believe our continuing investment in product development will enable us to capture an expanded pipeline of opportunities in new and exciting areas, including additional wins in dielectric etch. Looking forward, we expect semi revenue in Q4 to remain strong. Long term, with our design wins, growing power content and a favorable market trend, we believe we are well positioned to continue to outgrow the market.

我們相信，我們對產品開發的持續投資將使我們能夠在新的和令人興奮的領域抓住更多的機會，包括在電介質蝕刻方面的額外勝利。展望未來，我們預計第四季度的半導體收入將保持強勁。從長遠來看，憑藉我們的設計勝利、不斷增長的功率內容和有利的市場趨勢，我們相信我們有能力繼續超越市場。

Revenue from our industrial and medical markets increased by nearly 23% sequentially driven by increased factory output to deliver on strong backlog and general improvement in the industrial markets. For example, in industrial, demand for consumer electronics coating and motion control applications improved.

我們的工業和醫療市場收入環比增長近 23%，這是由於工廠產量增加，以實現強勁的積壓訂單和工業市場的普遍改善。例如，在工業領域，消費電子塗層和運動控制應用的需求有所改善。

Revenues for medical applications remained strong driven by continuing demand for critical care applications. Noncritical care applications also began to improve, but remained well below pre-COVID levels. This quarter, we secured multiple design wins across a wide range of medical diagnostic, imaging and therapeutic applications. Of note, we won a sole source position for a next-generation diagnostic blood analyzer at one of our leading medical customers, and our power solution was designed into new air filtration system for preventing the spread of COVID.

在重症監護應用的持續需求推動下，醫療應用的收入依然強勁。非重症監護應用程序也開始改善，但仍遠低於 COVID 之前的水平。本季度，我們在廣泛的醫療診斷、成像和治療應用領域贏得多項設計大獎。值得注意的是，我們贏得了一位領先醫療客戶的下一代診斷血液分析儀的唯一來源地位，我們的電源解決方案被設計到新的空氣過濾系統中，以防止 COVID 的傳播。

As we look forward, we expect the industrial and medical markets to continue their modest recovery with revenue around current levels in Q4. Our data center computing revenue hit another quarterly record in Q3, up 5% sequentially and 91% year-over-year. Despite industry headwinds of data center digestion and a generally weak IT spending environment, new design wins and growing share have enabled us to meaningfully outgrow the market.

展望未來，我們預計工業和醫療市場將繼續溫和復蘇，第四季度收入將保持在當前水平左右。我們的數據中心計算收入在第三季度再創新高，環比增長 5%，同比增長 91%。儘管數據中心消化的行業逆風和普遍疲軟的 IT 支出環境，新的設計勝利和不斷增長的份額使我們能夠有意義地超越市場。

In hyperscale, revenue was down slightly from a record quarter in Q2 but jumped 380% from last year. Revenue from a third hyperscaler customer helped to offset initial digestion from our earlier wins and we made good progress in winning new businesses from additional hyperscalers that should contribute to revenue next year. Although revenues in this market could be lumpy quarter-to-quarter, we remain confident in the long-term market growth and our ability to outgrow the market. Demand from enterprise OEM customers recovered in Q3 partially due to our ability to deliver to customer needs and capture market share.

在超大規模領域，收入較第二季度創紀錄的季度略有下降，但較去年增長 380%。來自第三個超大規模客戶的收入幫助抵消了我們早期勝利的初步消化，我們在贏得更多超大規模客戶的新業務方面取得了良好進展，這些業務應該會在明年為收入做出貢獻。儘管這個市場的收入可能每季度都不穩定，但我們仍然對長期市場增長和我們超越市場的能力充滿信心。企業 OEM 客戶的需求在第三季度有所恢復，部分原因是我們能夠滿足客戶需求並佔領市場份額。

In addition, one of our power design wins into high-performance computing platform started to ramp. We expect HPC to be a secular driver for our business going forward, given that our industry-leading product power density is the ideal solution for meeting the high-power, high-density requirements for those server racks.

此外，我們在高性能計算平台中的一項電源設計成果開始提升。鑑於我們行業領先的產品功率密度是滿足這些服務器機架的高功率、高密度要求的理想解決方案，我們預計 HPC 將成為我們業務發展的長期驅動力。

Looking forward, our data center computing revenue is expected to remain at elevated levels and well above last year's run rate. However, we anticipate digestion in the data center market to impact our revenue in Q4. We expect growth to return later in 2021 driven by additional investment in data center with the releases of new CPUs and accelerated by our share gains.

展望未來，我們的數據中心計算收入預計將保持較高水平，遠高於去年的運行率。然而，我們預計數據中心市場的消化將影響我們第四季度的收入。我們預計增長將在 2021 年晚些時候恢復，這得益於新 CPU 的發布以及我們的份額增長加速了對數據中心的額外投資。

Telecom and networking revenue grew over 18% sequentially as the market improved modestly from the trough levels in the first half of 2020. Q3 revenues also benefited from some catch-up shipment from our backlog and incremental share gains. Data center networking remains a bright spot in this market as data traffic shifts from enterprises to the cloud due to remote working trend. In addition, during the quarter, we secured a critical design win in a next-generation cloud networking platform that will support revenue growth as the industry migrates to 400-gig networks.

隨著市場從 2020 年上半年的低谷水平溫和改善，電信和網絡收入環比增長超過 18%。第三季度的收入也受益於我們積壓訂單和增量份額收益帶來的一些追趕出貨量。由於遠程工作趨勢，數據流量從企業轉移到雲端，因此數據中心網絡仍然是該市場的亮點。此外，在本季度，我們在下一代云網絡平台中贏得了一項關鍵設計，隨著行業向 400 千兆網絡遷移，該平台將支持收入增長。

In the telecom market, overall investment remain limited, although our mix of products sold into 5G applications has risen considerably in 2020, large-scale infrastructure investment in 5G outside of China continue to be delayed. Looking forward, Q4 revenues are expected to come in around these levels as market signals remain mixed. Long term, our efforts in winning 5G and next-generation networking designs prepare us to capture the market's recovery as global 5G infrastructure investment accelerates.

在電信市場，整體投資仍然有限，儘管我們銷售到 5G 應用的產品組合在 2020 年大幅增加，但在中國境外對 5G 的大規模基礎設施投資繼續被推遲。展望未來，由於市場信號仍然喜憂參半，第四季度的收入預計將在這些水平附近。從長遠來看，隨著全球 5G 基礎設施投資加速，我們在贏得 5G 和下一代網絡設計方面的努力使我們能夠抓住市場的複蘇。

In summary, our Q3 results serves a clear validation of our strategy and our business model. This strategy has enabled us to deliver industry leadership, revenue growth, innovation, synergies and earnings. I'm extremely proud of our global team who have responded to the myriad challenges this year to deliver outstanding financial and operational results while ensuring a safe environment for employees. I would also like to welcome our new -- 2 new Board members and Anne DelSanto and Lanesha Minnix, who add complementary industrial market knowledge, experience and capability to our Board.

總之，我們第三季度的業績清楚地驗證了我們的戰略和商業模式。這一戰略使我們能夠提供行業領導地位、收入增長、創新、協同效應和收益。我為我們的全球團隊感到非常自豪，他們今年應對了無數挑戰，在確保員工安全環境的同時，交付了出色的財務和運營成果。我還要歡迎我們的新 - 2 位新董事會成員 Anne DelSanto 和 Lanesha Minnix，他們為我們的董事會增添了互補的工業市場知識、經驗和能力。

As we continue to deliver on our strategic goals, we are realizing our vision of being a leading industrial growth company with a diversified revenue base, strong growth drivers and top tier financial results. As we look forward, near term, we see increased risks due to the new waves of coronavirus, but longer term, we see 2021 setting up to be a growth year for AE.

隨著我們繼續實現我們的戰略目標，我們正在實現我們的願景，即成為一家領先的工業成長型公司，擁有多元化的收入基礎、強勁的增長動力和一流的財務業績。展望未來，短期內，我們看到新一波冠狀病毒導致的風險增加，但從長遠來看，我們認為 2021 年將成為 AE 的增長年。

Although we see some variations quarter-to-quarter, we expect to continue to grow our earnings driven by our momentum in semi, share gains in hyperscale and macro recovery in industrial markets and global 5G investments combined with our continuing efficiency gain, portfolio optimization and synergies. We are planning an investor briefing in December to discuss our progress to date, a deeper dive into our newer markets and an update to our aspirational goals. I'd like to thank our customers, shareholders, partners and our valued employees for your support, especially during this challenging time. I look forward to speaking with many of you in the upcoming quarter.

儘管我們看到季度與季度之間存在一些差異，但我們預計我們的收益將繼續增長，這得益於我們在半導體行業的勢頭、超大規模的份額增長和工業市場的宏觀復甦以及全球 5G 投資，以及我們持續的效率提升、投資組合優化和協同作用。我們計劃在 12 月召開一次投資者簡報會，討論我們迄今為止取得的進展、更深入地了解我們的新市場以及更新我們的遠大目標。我要感謝我們的客戶、股東、合作夥伴和我們尊貴的員工的支持，尤其是在這個充滿挑戰的時期。我期待在即將到來的季度與你們中的許多人交談。

With that, let me turn the call over to Paul.

有了這個，讓我把電話轉給保羅。

Thank you, Yuval, and good morning. Before I begin, please note that all financial measures presented today will be on a non-GAAP basis, unless otherwise stated. Excluded from non-GAAP results are amortization, stock compensation, integration and transition costs, unrealized foreign exchange gains and losses and restructuring items.

謝謝你，Yuval，早上好。在我開始之前，請注意，除非另有說明，否則今天提出的所有財務指標都將基於非公認會計原則。非 GAAP 結果不包括攤銷、股票補償、整合和轉型成本、未實現的外匯損益和重組項目。

This quarter, we recorded $5.6 million of acquisition-related costs related to the Artesyn acquisition and transition. We also recorded $3.5 million in noncash, unrealized FX losses related to long-term lease and pension liabilities. A full reconciliation from GAAP to non-GAAP measures can be found in our press release issued earlier today.

本季度，我們記錄了 560 萬美元與 Artesyn 收購和過渡相關的收購相關成本。我們還記錄了 350 萬美元的非現金、未實現的與長期租賃和養老金負債相關的外匯損失。在我們今天早些時候發布的新聞稿中可以找到從 GAAP 到非 GAAP 措施的全面調節。

As Yuval mentioned, this was an exceptional quarter as we delivered record results across a wide range of financial metrics. Strong execution by our team to meet our customer requirements and increased demand for our products enabled revenue and EPS to surpass the high end of our guidance ranges. In addition, we achieved an annualized return on invested capital of over 25%, and our cash balance increased by over $48 million.

正如 Yuval 所提到的，這是一個非凡的季度，因為我們在廣泛的財務指標上取得了創紀錄的業績。我們團隊為滿足客戶要求和對我們產品的需求增加而強有力的執行使收入和每股收益超過了我們指導範圍的高端。此外，我們實現了超過 25% 的年化投資回報率，我們的現金餘額增加了超過 4800 萬美元。

Perhaps most significantly, our financial performance validates our business model and demonstrates the leverage in our operation as we execute our strategy to accelerate earnings growth. Third quarter revenue was a record $390 million, up 15% from $340 million last quarter and 122% from a year ago. We saw sequentially stronger demand across all our markets and a burst of order activity at the end of the quarter that we were able to deliver to our customers' short lead time requirements.

也許最重要的是，我們的財務業績驗證了我們的商業模式，並展示了我們在執行加速盈利增長戰略時的運營槓桿。第三季度收入達到創紀錄的 3.9 億美元，比上一季度的 3.4 億美元增長 15%，比去年同期增長 122%。我們看到我們所有市場的需求依次增強，並且在本季度末訂單活動激增，我們能夠滿足客戶的短交貨期要求。

In addition, we were able to ship backlog created during early 2020 due to capacity supply constraints, reflecting roughly half of the upside to our guidance in the quarter. On a pro forma basis, including a full quarter of Artesyn revenue in prior periods, Q3 revenue grew 35% year-over-year. Excluding Artesyn, organic revenue grew 12% sequentially and 50% year-over-year to $201 million.

此外，由於產能供應限制，我們能夠運送 2020 年初產生的積壓訂單，這反映了我們本季度指引的大約一半上行空間。在備考基礎上，包括 Artesyn 前期的整個季度收入，第三季度收入同比增長 35%。不包括 Artesyn，有機收入環比增長 12%，同比增長 50% 至 2.01 億美元。

Turning to revenue by market. Sales in the semiconductor in Q3 were $167 million, up nearly 15% from a strong second quarter and up 73% year-over-year with good demand across foundry, logic and memory. Revenues were up 70% on a pro forma basis. Both semi product and service revenues were a quarterly record. Overall, we are growing faster than our peers and the overall market, with sales in both RF matches and RPS more than doubling year-over-year.

轉向按市場劃分的收入。第三季度半導體銷售額為 1.67 億美元，比強勁的第二季度增長近 15%，同比增長 73%，代工、邏輯和內存需求旺盛。按備考計算，收入增長了 70%。半成品和服務收入均創下季度記錄。總體而言，我們的增長速度快於我們的同行和整個市場，RF 火柴和 RPS 的銷售額同比增長了一倍以上。

Revenue from our industrial and medical markets was $87 million, up 23% sequentially as a result of modest market improvement and catch-up of backlog. On a pro forma basis, revenue declined 11% year-over-year as a result of ongoing general weakness in several of our industrial sectors, exacerbated by the COVID-19 crisis.

我們的工業和醫療市場收入為 8700 萬美元，環比增長 23%，這是由於適度的市場改善和積壓的追趕。在備考基礎上，由於我們的幾個工業部門持續普遍疲軟，COVID-19 危機加劇，收入同比下降 11%。

Data center computing revenue was $88 million, up 5% from the second quarter. On a pro forma basis, sales were up 91% year-over-year, another quarterly record for the company. Hyperscale revenues declined slightly from record levels in Q2 as cloud digestion began, but was still up almost 5x from last year. Enterprise OEM revenues grew both sequentially and year-over-year driven by share gains and increased demand from prior design wins.

數據中心計算收入為 8800 萬美元，比第二季度增長 5%。按備考計算，銷售額同比增長 91%，再創公司季度記錄。隨著雲計算的開始，超大規模收入從第二季度的創紀錄水平略有下降，但仍比去年增長近 5 倍。企業 OEM 收入在份額增長和先前設計勝利的需求增加的推動下環比和同比增長。

Telecom and networking revenue was $48 million, up over 18% sequentially. On a pro forma basis, revenues were nearly flat year-over-year. Non-GAAP gross margin for the quarter increased by over 100 basis points sequentially to 39.8%. Margins benefited primarily from better fixed cost absorption on higher volume partially offset by increased other cost of sales following a favorable quarter in Q2.

電信和網絡收入為 4800 萬美元，環比增長超過 18%。在備考基礎上，收入同比幾乎持平。本季度非美國通用會計準則毛利率環比增長超過 100 個基點，達到 39.8%。利潤率主要受益於更好的固定成本吸收和更高的銷量，部分被第二季度有利季度後其他銷售成本的增加所抵消。

Importantly, we are beginning to see the benefits of our synergy actions, including portfolio optimization and cost improvements shine through as volumes increase, validating our business model. Although gross margin is expected to decline slightly on lower volume in the coming quarter, we continue to make great progress on our goal to improve sustainable gross margins to greater than 40% as we complete our synergy and consolidation plans over the next year. Non-GAAP operating expenses were $78.9 million, up $1.1 million from last quarter, primarily due to ongoing investment in strategic R&D programs and innovation. Expense as a percentage of sales decreased by over 250 basis points versus Q2 to just over 20% of revenue and in the top quartile of our peers.

重要的是，我們開始看到協同行動的好處，包括產品組合優化和成本改進，隨著銷量的增加而顯現出來，驗證了我們的商業模式。儘管下一季度毛利率預計會因銷量下降而略有下降，但隨著我們在明年完成協同效應和整合計劃，我們將繼續在實現將可持續毛利率提高到 40% 以上的目標方面取得重大進展。非 GAAP 運營費用為 7890 萬美元，比上一季度增加 110 萬美元，這主要是由於對戰略研發計劃和創新的持續投資。費用佔銷售額的百分比與第二季度相比下降了 250 多個基點，佔收入的 20% 以上，在我們的同行中名列前茅。

Overall, we achieved 19.5% operating margin, reflecting 45% incremental margins or operating leverage from last quarter. As a result, non-GAAP operating income improved to $76 million, up 41% sequentially and another record for the company. Non-GAAP other expense was $2.4 million, including $1.1 million of interest expense. We expect total other expense to be in the $1.5 million to $2 million range going forward. Our non-GAAP tax expense was $9.8 million or 13.3% primarily as a result of favorable mix of foreign earnings and the integration of Artesyn into our tax structure on a year-to-date basis.

總體而言，我們實現了 19.5% 的營業利潤率，反映出比上一季度增加了 45% 的利潤率或經營槓桿。因此，非 GAAP 營業收入提高至 7600 萬美元，環比增長 41%，再創公司歷史新高。非 GAAP 其他費用為 240 萬美元，包括 110 萬美元的利息費用。我們預計未來其他總費用將在 150 萬至 200 萬美元之間。我們的非 GAAP 稅收支出為 980 萬美元或 13.3%，這主要是由於海外收入的有利組合以及 Artesyn 在年初至今的稅收結構中的整合。

Looking forward, we now expect the GAAP and non-GAAP tax rate to be in the 15% range. Non-GAAP earnings for the quarter were a record $1.66 per share, up 41% from $1.18 last quarter on higher revenue and margins. Earnings per share was up over 200% from $0.54, 1 year ago, demonstrating our goal of accelerating earnings growth. The Artesyn acquisition contributed meaningfully to our financial results. To date, we have achieved annualized synergies of over $30 million and earnings accretion over the past 4 quarters of over $1 per share.

展望未來，我們現在預計 GAAP 和非 GAAP 稅率將在 15% 的範圍內。本季度非美國通用會計準則每股收益達到創紀錄的 1.66 美元，較上一季度的 1.18 美元增長 41%，收入和利潤率均有所提高。每股收益比 1 年前的 0.54 美元增長了 200% 以上，證明了我們加速收益增長的目標。對雅特生科技的收購對我們的財務業績做出了重大貢獻。迄今為止，我們已經實現了超過 3000 萬美元的年化協同效應，並且在過去 4 個季度中實現了每股超過 1 美元的收益增長。

In addition to achieving our Phase 1 synergy targets ahead of schedule, we continue to find new opportunities for efficiency improvement as we integrate into a combined functional organization. Phase 2 of our synergy plan is well on its way, and we remain confident in meeting or exceeding our long-term targets of over $40 million of annualized synergies and over $1.50 per share in annual EPS accretion.

除了提前實現我們的第一階段協同目標外，我們還在整合到一個綜合職能組織中繼續尋找提高效率的新機會。我們協同計劃的第二階段進展順利，我們仍然有信心達到或超過我們的長期目標，即超過 4000 萬美元的年度協同效應和超過 1.50 美元的年度每股收益增長。

Turning now to the balance sheet. We ended the quarter with cash and marketable securities of $431.6 million, up $48 million from Q2. Receivables increased slightly on higher sales. The DSO improved 7 days to 55 days on fairly linear shipments during the quarter. Inventory decreased by $3 million and turns were 3.7x. Payables were $159 million, representing 61 days of DPO. Total days of net working capital were 93, down 4 days from last quarter.

現在轉向資產負債表。本季度結束時，我們的現金和有價證券為 4.316 億美元，比第二季度增加了 4800 萬美元。由於銷售額增加，應收賬款略有增加。在本季度相當線性的出貨量上，DSO 縮短了 7 天至 55 天。庫存減少了 300 萬美元，周轉率為 3.7 倍。應付賬款為 1.59 億美元，相當於 DPO 的 61 天。淨營運資金總天數為 93 天，比上一季度減少 4 天。

The business continues to deliver excellent cash generation. Operating cash flow from continuing operations was $67.5 million, our highest level ever. Free cash flow from continuing operations was $56 million in Q3 and year-to-date free cash flow was $110 million. Capital expenditures for the quarter were $11.8 million, and depreciation was $7.2 million. The higher-than-normal CapEx in this quarter was due to a onetime investment in facilities to support expanded capacity in our Philippine operation.

該業務繼續提供出色的現金產生。來自持續經營的經營現金流為 6750 萬美元，是我們有史以來的最高水平。第三季度來自持續經營的自由現金流為 5600 萬美元，年初至今的自由現金流為 1.1 億美元。本季度的資本支出為 1180 萬美元，折舊為 720 萬美元。本季度高於正常水平的資本支出是由於對設施進行了一次性投資，以支持我們菲律賓業務的產能擴大。

Overall, we expect capital expenditures to remain about 2% to 3% of sales in line with historical levels for Advanced Energy. During the quarter, we repaid $4.4 million of principal amortization on our debt, ending with total bank debt of $326.3 million. Our trailing 12-month gross debt leverage decreased to 1.34x, well within our target range of 1 to 2x. During the quarter, we also repurchased approximately $4.3 million of stock at an average price of $59.70 per share.

總體而言，我們預計資本支出將保持在銷售額的 2% 至 3% 左右，與 Advanced Energy 的歷史水平一致。本季度，我們償還了 440 萬美元的債務本金攤銷，最終銀行債務總額為 3.263 億美元。我們過去 12 個月的總債務槓桿率降至 1.34 倍，完全在我們 1 至 2 倍的目標範圍內。本季度，我們還以每股 59.70 美元的平均價格回購了約 430 萬美元的股票。

Now let me turn to guidance. Overall, in the fourth quarter, we expect demand to continue to be solid across our vertical markets. We expect semiconductor revenues to remain strong, with second half of 2020 growing 15% to 20% above first half levels. Revenue for data center computing applications is expected to be lower in Q4 as we see overall market and customer-specific digestion, following several strong quarters and share gains. We expect demand and revenue in industrial and medical and telecom markets to remain relatively stable.

現在讓我轉向指導。總體而言，在第四季度，我們預計垂直市場的需求將繼續保持穩定。我們預計半導體收入將保持強勁，2020 年下半年比上半年增長 15% 至 20%。在經歷了幾個強勁的季度和份額增長之後，我們看到整體市場和特定客戶的消化，預計第四季度數據中心計算應用的收入將下降。我們預計工業、醫療和電信市場的需求和收入將保持相對穩定。

Factoring in the limited visibility and ongoing operating and macroeconomic risks related to COVID, we are guiding Q4 at $360 million, plus or minus $20 million. Based on anticipated volume, mix and ongoing COVID-related costs, we expect non-GAAP gross margins to be in the 38% to 39% range. Operating expenses are expected to be about flat. As a result, we expect non-GAAP earnings to be $1.30 per share, plus or minus $0.20.

考慮到與 COVID 相關的可見度有限以及持續的運營和宏觀經濟風險，我們指導第四季度為 3.6 億美元，上下浮動 2000 萬美元。根據預期的數量、組合和持續的 COVID 相關成本，我們預計非 GAAP 毛利率將在 38% 至 39% 的範圍內。運營費用預計將持平。因此，我們預計非 GAAP 每股收益為 1.30 美元，上下浮動 0.20 美元。

In summary, we expect that 2020 will be a very strong year for Advanced Energy, as we have grown both organically and achieved our integration and financial performance goals related to the Artesyn acquisition ahead of schedule. Based on the midpoint of our guidance, second half 2020 revenue growth would be nearly 15% over first half of 2020, and full year revenue would be up 17% from 2019 on a pro forma basis. Earnings per share would be up 42% from the first half and more than double for the full year, demonstrating our goal of accelerated earnings growth.

總之，我們預計 2020 年對於 Advanced Energy 來說將是非常強勁的一年，因為我們實現了有機增長，並提前實現了與收購 Artesyn 相關的整合和財務績效目標。根據我們指引的中點，2020 年下半年收入增長將比 2020 年上半年增長近 15%，全年收入將比 2019 年增長 17%。每股收益將比上半年增長 42%，全年增長一倍以上，體現了我們加速盈利增長的目標。

In addition, our financial performance in the third quarter illustrates that our long-term financial targets of over 40% gross margins and over 20% operating margins are achievable. Our strategy of being a pure-play power provider to industrial growth markets is enabling key competitive advantages and our continued focus on improving our operations to drive further revenue growth and profitability. Looking forward, while timing of orders and market dynamics may drive some quarter-to-quarter variation, we believe overall demand for our products remains solid. And 2021 is setting up to be a good growth year for AE with multiple drivers across our verticals.

此外，我們第三季度的財務業績表明，我們的毛利率超過 40% 和營業利潤率超過 20% 的長期財務目標是可以實現的。我們作為工業增長市場的純電力供應商的戰略正在實現關鍵的競爭優勢，我們將繼續專注於改善我們的運營以推動進一步的收入增長和盈利能力。展望未來，雖然訂單時間和市場動態可能會導致季度間出現一些變化，但我們相信對我們產品的整體需求依然強勁。 2021 年將成為 AE 增長良好的一年，在我們的垂直領域有多個驅動因素。

With that, let's take your questions. Operator?

有了這個，讓我們回答你的問題。操作員？

(Operator Instructions) Your first question comes from the line of Scott Graham with Rosenblatt Securities.

（操作員說明）您的第一個問題來自 Rosenblatt Securities 的 Scott Graham。

So I have a couple. Could you -- you all talk a little bit more about the high-performance computing and calling that a secular driver, this is a ramp of a win -- how -- even if you could just give us some type of parameter for how big that is within data center computing and I guess it's important enough where you listed it on this page. So if you can maybe give us more color on that?

所以我有一對。你能不能——你們都多談談高性能計算並將其稱為世俗驅動程序，這是勝利的斜坡——如何——即使你可以給我們一些參數來說明有多大那是在數據中心計算中，我想您在此頁面上列出它的位置已經足夠重要了。那麼，您是否可以給我們更多的顏色？

So I think it's a trend right now as we see migration to high-performance computing driven by increased focus on AI, artificial intelligence, machine learning and more focused on edge computing. These applications are requiring significant amount of power, their power hogs. And we are well positioned, and specifically in this area because of our high-efficiency of power conversion, power density and our solution provide a competitive advantage when it comes to the actual total cost of ownership of the asset. Now I cannot comment on the size of the market. I'll ask maybe, Edwin, if you have any information about the size of this market, but it's definitely a trend that will continue to grow, and we are well positioned to benefit from this growth. Edwin?

因此，我認為這是目前的一種趨勢，因為我們看到越來越多地關注 AI、人工智能、機器學習以及更加關注邊緣計算，從而推動了向高性能計算的遷移。這些應用程序需要大量的功率，它們的功率消耗很大。我們處於有利地位，特別是在這一領域，因為我們的功率轉換效率高，功率密度和我們的解決方案在資產的實際總擁有成本方面提供了競爭優勢。現在我不能評論市場的規模。我可能會問，埃德溫，如果你有關於這個市場規模的任何信息，但它絕對是一個將繼續增長的趨勢，我們有能力從這種增長中受益。埃德溫？

Yes. So this particular one, we won this design on enterprise OEM who has a high-performance computing platform that they are rolling out, right? But I think the whole idea is that as things move forward, there are more AI or machine learning kind of applications being adopted and you hear from multiple company talk about high-performance computing as an area that will grow, right?

是的。所以這個特別的，我們贏得了企業 OEM 的設計，他們擁有正在推出的高性能計算平台，對嗎？但我認為整個想法是，隨著事情的發展，會有更多的人工智能或機器學習類型的應用程序被採用，你從多家公司那裡聽說高性能計算是一個將會增長的領域，對吧？

And as that grow, as you all suggested, those server and those system typically come with substantially higher power, which then higher power density becomes a more critical primaries as important for this and that's an area that we believe we have advantage. That's why we're winning this a lot.

隨著這種增長，正如你們所有人所建議的那樣，那些服務器和那些系統通常具有更高的功率，然後更高的功率密度成為一個更重要的初級，這對我們來說很重要，這是我們認為我們有優勢的領域。這就是為什麼我們贏得了很多。

Got it. That's very helpful. Paul, one question for you. You talked about a sort of a onetime or expected nonrecurring benefit in the third quarter, the gross margin. And you said something about -- I'm sorry, if I’m missing this, that half of your upside in the quarter was due to something, end of quarter shipment or something along those lines. Could you clarify both the gross margin and all of that comment as well?

知道了。這很有幫助。保羅，問你一個問題。你談到了第三季度的一種一次性或預期的非經常性收益，即毛利率。你說了一些關於 - 對不起，如果我錯過了這個，你在本季度的一半上漲是由於某些原因，季度末發貨或類似的原因。您能否澄清毛利率和所有評論？

Yes. Sure, Scott. So on the revenue, obviously, we had an outstanding quarter, even above our guidance range that we gave before. What we said on the call is about half of that upside came from catching up backlog from earlier in the year, that essentially was a result of operational supply constraints related to COVID. So that was better than we thought we could do. So we had a really good quarter, and that's why we wanted to call that out, in particular, the catch-up on that backlog. Now if you look at our backlog numbers, they were still quite strong because we were able to fill some of that in at the very end of the quarter due to the strong demand we saw.

是的。當然，斯科特。因此，在收入方面，很明顯，我們有一個出色的季度，甚至高於我們之前給出的指導範圍。我們在電話會議上所說的是，大約一半的增長來自今年早些時候積壓的訂單，這基本上是與 COVID 相關的運營供應限制的結果。所以這比我們想像的要好。所以我們有一個非常好的季度，這就是為什麼我們想指出這一點，特別是對積壓的追趕。現在，如果您查看我們的積壓訂單數量，它們仍然非常強勁，因為由於我們看到的強勁需求，我們能夠在本季度末完成其中的一些工作。

The second comment on gross margin, what we said is the sequential improvement from last quarter was largely the result of higher volume. And what it illustrates, though, is that some of the underlying improvements we've made in portfolio, rationalization as well as cost are really shining through. As you saw this quarter on a non-GAAP basis, margins are almost 40%, which is close to our goal. Even though we haven't completed kind of our Phase 2 structural changes for -- around cost of sales and supply chain and some material cost savings that we think we can achieve over the next year or so.

關於毛利率的第二個評論，我們所說的是上一季度的連續改善主要是銷量增加的結果。不過，它說明的是，我們在投資組合、合理化和成本方面所做的一些根本改進確實在閃耀。正如您本季度在非 GAAP 基礎上看到的那樣，利潤率接近 40%，接近我們的目標。儘管我們還沒有完成我們的第二階段結構變化——圍繞銷售和供應鏈成本以及我們認為我們可以在未來一年左右實現的一些材料成本節約。

So it wasn't really any onetime item in gross margin, it's more the benefit of volume, but we're seeing the actions we're taking underneath that really, really starting to come through, which gives us a lot of confidence about our ability to get to 40% gross margins over the long run as we see good volumes in the business.

所以這並不是毛利率中的任何一次性項目，更多的是數量的好處，但我們看到我們正在採取的行動真的開始實現，這讓我們對我們的業務充滿信心從長遠來看，我們有能力達到 40% 的毛利率，因為我們看到業務量很大。

One comment about the quarter is our ability to respond very quickly to changes in volume and mix, and that allows us to deliver to customers when they need it and address this burst in demand in Q3.

關於本季度的一個評論是我們能夠非常快速地響應數量和組合的變化，這使我們能夠在客戶需要時向他們交付並解決第三季度的需求激增。

Yes. One last quick one, if you don't mind. Could you just briefly talk about -- you're saying that the telecom and networking market, you're expecting that to get better. I thought you said late in '21. Is that simply a pushout of your customers of their 5G spending? Is that what that is tied to that comment?

是的。如果你不介意的話，最後一個快速的。你能不能簡單地談談——你說的是電信和網絡市場，你期望它會變得更好。我以為你說的是 21 年底。這僅僅是對您客戶 5G 支出的推動嗎？那是與該評論相關的內容嗎？

I think we said later in 2021, not late in '21. We basically -- basically talking about data center computing will recover in late in 2021. Telecom networking, we came from a trough, and we see some recovery. Although because of the geopolitical situation and delay in some investments in 5G infrastructure, we see some pushout into next year.

我想我們說的是 2021 年晚些時候，而不是 21 年底。我們基本上 - 基本上談論數據中心計算將在 2021 年底恢復。電信網絡，我們從低谷中走出來，我們看到了一些復甦。儘管由於地緣政治形勢和對 5G 基礎設施的一些投資延遲，我們看到一些推遲到明年。

However, we are very excited about 5G. And to make sure that people don't misunderstand us, 5G drives growth in all of our verticals, not only in telecom network and networking. Telecom networking at the 5G products we sell in telecom networking go to the base stations and the radio towers. However, 5G in general drives increase in semiconductor devices, which drive increase in the need for semiconductor processing tools. It accelerates the migration to Industrial 4.0, that also increased the need for some of our advanced solutions for medical, for industrial, for automation, et cetera. So we are extremely excited about 5G. And we believe that the world is just the beginning of the adoption of 5G, and that will continue to drive secular growth for us for all of our verticals, not only the power supplies that go into the infrastructure.

但是，我們對 5G 感到非常興奮。為了確保人們不會誤解我們，5G 推動了我們所有垂直領域的增長，而不僅僅是電信網絡和網絡。我們在電信網絡中銷售的 5G 產品的電信網絡進入基站和無線電塔。然而，5G 總體上推動了半導體器件的增加，這推動了對半導體加工工具的需求增加。它加速了向工業 4.0 的遷移，這也增加了我們對醫療、工業、自動化等領域的一些先進解決方案的需求。所以我們對 5G 感到非常興奮。我們相信世界只是採用 5G 的開始，這將繼續推動我們所有垂直行業的長期增長，而不僅僅是進入基礎設施的電源。

Your next question comes from the line of Paretosh Misra with Berenberg.

你的下一個問題來自 Paretosh Misra 與 Berenberg 的對話。

Great. What is the medical component? How much is that within the industrial and medical business? And how are you looking for growth potential add for the medical part of that business?

偉大的。醫療成分是什麼？在工業和醫療行業中有多少？您如何為該業務的醫療部分尋找增長潛力？

Yes. Overall, we said last quarter that our medical is about $75 million, and it's been growing. This is an area we're excited about. If you go back 3 or 4 years ago, we had virtually no presence in this market, and we've been able to grow that both through products we've acquired and organic growth. So it's an area that we see of growth going forward.

是的。總的來說，我們上個季度說我們的醫療費用約為 7500 萬美元，而且一直在增長。這是一個讓我們感到興奮的領域。如果你回到 3 或 4 年前，我們在這個市場上幾乎沒有存在，我們已經能夠通過我們收購的產品和有機增長來實現增長。因此，這是我們看到未來增長的一個領域。

And the growth is driven both by, I would say, short-term need, a burst of need for critical care applications like ventilators and also some life science equipment that goes into a gene sequencing, vaccine development and testing.

我想說，這種增長是由短期需求推動的，對呼吸機等重症監護應用的需求激增，以及一些用於基因測序、疫苗開發和測試的生命科學設備。

Long term, we expect to see a continuation of the growth coming from the noncritical applications. And we mentioned just a few example, so we became a sole supplier for a blood analyzer and additional applications that go to diagnostic, imaging and also therapeutic applications.

從長遠來看，我們預計非關鍵應用程序將繼續增長。我們只提到了幾個例子，所以我們成為了血液分析儀和其他應用程序的唯一供應商，這些應用程序涉及診斷、成像和治療應用程序。

Interesting. And then within the industrial part of that business, are there any specific end markets that you think have been a drag on growth? And any thoughts on when those slower growing or not growing end markets might recover?

有趣的。然後在該業務的工業部分，您認為是否有任何特定的終端市場拖累了增長？對那些增長較慢或增長緩慢的終端市場何時可能複蘇有什麼想法嗎？

So the beauty about the industrial market, the non-medical part, right, the industrial market, it's highly diversified. And that's the exciting thing about it because if you look at every application in the world, they could be lumpy and they could have cycles of investment because these are capital investments. So in this specific market, we see growth coming from a consumer electronic product coating, and these are tribological coating or optical coating. We see increasing need for automation and motion control. And again, very broad. And I -- you should expect to see that product mix, market mix and application mix changes dynamically. But in aggregate, we expect to see this part of our business continues to grow at GDP plus.

所以關於工業市場的美麗，非醫療部分，對，工業市場，它是高度多樣化的。這就是令人興奮的事情，因為如果你看看世界上的每一個應用程序，它們可能是塊狀的，它們可能有投資週期，因為這些是資本投資。因此，在這個特定市場中，我們看到消費電子產品塗層的增長，這些是摩擦學塗層或光學塗層。我們看到對自動化和運動控制的需求越來越大。再次，非常廣泛。我——你應該期望看到產品組合、市場組合和應用程序組合動態變化。但總的來說，我們希望看到我們這部分業務繼續以 GDP 增長的速度增長。

Understood. And maybe if I could ask just last quick one for Paul. And just on your balance sheet and capital allocation philosophy, given where you ended up at the end of this quarter. Just any thoughts on how you’re looking to deploy cash in the quarters ahead.

明白了。也許我可以為保羅問最後一個快速的問題。考慮到您在本季度末的最終結果，就在您的資產負債表和資本配置理念上。關於您打算如何在未來幾個季度部署現金的任何想法。

Yes. Clearly, our primary goal in cash deployment is to continue to grow the company. We've stated that, broadly speaking, we'd like to deploy roughly 70% of our capital to smart M&A to continue to build out our strategy or as a pure-play power provider. And the balance we would look at as available to return to shareholders. We've done that historically and continue to invest through an opportunistic share repurchase program. It doesn't mean we're buying every quarter, but we're looking for opportunities that make sense to be in the market. And we will -- we did buy additional shares this quarter, as you saw stock dipped, we’re able to pick up a few shares. I think year-to-date, we've purchased something like $12 million or $13 million of stock through the first 3 quarters of this year. And that will vary by year, but that's our goal is roughly 70-30 split.

是的。顯然，我們在現金部署方面的主要目標是繼續發展公司。我們已經表示，從廣義上講，我們希望將大約 70% 的資本用於智能併購，以繼續制定我們的戰略或作為一家純粹的電力供應商。我們認為可用於回報股東的餘額。我們過去一直這樣做，並繼續通過機會主義的股票回購計劃進行投資。這並不意味著我們每個季度都在購買，但我們正在尋找在市場上有意義的機會。我們將 - 本季度我們確實購買了額外的股票，因為你看到股票下跌，我們能夠購買一些股票。我認為今年迄今為止，我們在今年前三個季度購買了大約 1200 萬或 1300 萬美元的股票。這會因年而異，但我們的目標是大約 70-30 分。

Your next question comes from the line of Quinn Bolton with Needham & Company.

你的下一個問題來自 Quinn Bolton 與 Needham & Company 的合作。

Congratulations on the results. Wanted to just come back to the semiconductor business and your comments about growing faster than peers. I think MKS talked about growing its power business over 100%, both in the quarter and I think year-to-date, which sounds perhaps faster than your overall semiconductor business. So wondering if you might be looking at apples and oranges here? Or just could you clarify your comments about your belief you're growing faster than peers? And then I've got a couple of follow-ups.

祝賀結果。想回到半導體業務以及您對增長速度超過同行的評論。我認為 MKS 談到在本季度和我認為今年迄今都將其電力業務增長超過 100%，這聽起來可能比您的整體半導體業務更快。所以想知道你是否在這裡看蘋果和橘子？或者您能否澄清一下關於您認為自己比同齡人成長更快的看法？然後我有幾個後續行動。

Sure. Thank you for the question, Quinn. I think you're not looking at apples-to-apples. I think you need to really take a deep dive and look at the definition of power. Now if you look at growth, I'm saying right now, categorically, we are growing faster than MKS. Q3 year-over-year, year-to-date, half -- second half versus first half and year-over-year.

當然。謝謝你的問題，奎因。我認為您不是在看同類產品。我認為你需要真正深入研究一下權力的定義。現在，如果你看一下增長，我現在明確地說，我們的增長速度比 MKS 快。第三季度同比，年初至今，一半 - 下半年與上半年和同比。

And we'll be able to talk to you later, but show you some numbers. So we are growing faster than MKS in every category of growth comparison you look at. I don't know how they define power. The area where we compete with them categorically, we're growing more than they do, and we're gaining market share that drives that growth.

我們稍後可以與您交談，但會向您展示一些數字。因此，在您查看的每個增長比較類別中，我們的增長速度都快於 MKS。我不知道他們如何定義權力。在我們與他們絕對競爭的領域，我們的增長比他們快，我們正在獲得推動增長的市場份額。

Okay. Paul, second question for you. You talked about catching up on backlog built earlier this year due to COVID supply constraints standard for half of the upside in the third quarter. As you come into the fourth quarter, do you expect to catch up on additional demand? Or do you think with the third quarter upside, you're largely back now and all of that catch-up is behind you?

好的。保羅，你的第二個問題。你談到趕上今年早些時候由於 COVID 供應限制標準而積壓的第三季度一半的上行空間。當您進入第四季度時，您是否預計會趕上額外的需求？或者你認為隨著第三季度的上升，你現在基本上回來了，所有的追趕都已經過去了？

I think we're largely caught up from things that were delayed due to the supplier constraints and some of our operational challenges, particularly out of the Philippines. And most of that came out of the I&M and telecom side for embedded power type products. So we think we're largely caught up. Having said that, we continue to have a very strong backlog position because we continue to see good demand across our other markets. So we think that, that helps the quarter certainly. But we wouldn't expect to see that catch-up or a big backlog drawdown necessarily as we look forward.

我認為我們在很大程度上趕上了由於供應商限制和我們的一些運營挑戰而延遲的事情，特別是在菲律賓之外。其中大部分來自嵌入式電源類產品的 I&M 和電信方面。所以我們認為我們在很大程度上被趕上了。話雖如此，我們仍然擁有非常強勁的積壓狀況，因為我們繼續看到其他市場的良好需求。所以我們認為，這肯定有助於本季度。但我們並不期望在我們期待的時候看到這種追趕或大量積壓的縮減。

And your next question comes from Mehdi Hosseini with Susquehanna.

你的下一個問題來自 Mehdi Hosseini 和 Susquehanna。

Yes. I have a couple of follow-ups. And one as a follow-up to Quinn's question. I think it would be very helpful if you could give us an update on how you're increasing market share or presence in Japan, especially as it relates to semi cap. And I have a few follow-ups.

是的。我有幾個後續行動。還有一個是 Quinn 問題的後續問題。如果您能向我們介紹您如何增加日本市場份額或影響力的最新情況，我認為這將非常有幫助，尤其是與半市值相關的情況。我有一些後續行動。

Well, Mehdi, obviously, we need to be very carefully -- very careful about customer information and our business size and activities of customers’ sites. We are definitely gaining share in Asia, including Japan and the areas that we are gaining share are related to etch and deposition. We see dramatic growth in general in our RF matching technology. And as you know, RF matching is sort of the glue between the power supply and the process. And it's an area that is extremely critical, especially as multiple frequencies are being used to drive advanced processes. We are the leader in technology in RF matching and our RF matches continue to be adopted across the board as an enabler for next-generation technology.

好吧，Mehdi，顯然，我們需要非常小心——非常小心客戶信息以及我們的業務規模和客戶站點的活動。我們肯定在亞洲獲得份額，包括日本，我們獲得份額的領域與蝕刻和沈積有關。我們看到我們的 RF 匹配技術總體上出現了顯著增長。如您所知，RF 匹配是電源和工藝之間的粘合劑。這是一個極其關鍵的領域，尤其是在使用多個頻率來驅動高級流程的情況下。我們是 RF 匹配技術的領導者，我們的 RF 匹配作為下一代技術的推動者繼續被廣泛採用。

And that's the reason, if you go back to our prepared remarks, you can look at the growth rate we exhibit in the RF matching area, which is phenomenal. Another area that we openly talked about is key to our strategy in semi first is remote plasma source technology. And our remote plasma source product line continued to grow significantly, and we expect the business to continue to generate incremental revenue for the future as we continue to gain share, both in Asia and also in other locations around the world. I hope that answered your question, Mehdi.

這就是原因，如果你回到我們準備好的評論，你可以看看我們在 RF 匹配領域展示的增長率，這是驚人的。我們公開談論的另一個領域是我們在 semi first 戰略的關鍵是遠程等離子源技術。我們的遠程等離子源產品線繼續顯著增長，隨著我們在亞洲和世界其他地區繼續擴大市場份額，我們預計未來該業務將繼續產生增量收入。我希望這回答了你的問題，Mehdi。

Absolutely. And I want to go back to some of your targets. You have highlighted consistently your desired goal of exceeding revenue target of $1.5 billion and cash EPS of $6.50. Your Q3 results despite the onetime adjustment to backlog from earlier this year, puts you above that run rate. And as you look into the future -- and I understand you're going to provide us an update on December 14. But as you look into the future, do you think that you're going to continue to exceed your targets organically? Or is this going to be a mix of organic growth and selective and opportunistic acquisition?

絕對地。我想回到你的一些目標。您一直強調您期望的目標是超過 15 億美元的收入目標和 6.50 美元的現金每股收益。儘管從今年早些時候開始對積壓進行了一次性調整，但您的第三季度結果仍高於該運行率。當你展望未來時——我知道你將在 12 月 14 日向我們提供更新。但是當你展望未來時，你認為你會繼續有機地超越你的目標嗎？或者這將是有機增長與選擇性和機會主義收購的結合？

Yes. Those long-term targets that we talked about, Mehdi, do not include acquisitions. So that's our organic growth targets. To the degree we did additional acquisitions, we would see that as incremental to achieving those numbers. So obviously, we're pleased with the progress we've made today. I think we're ahead of schedule. And at the same time, there's more to do.

是的。 Mehdi，我們談到的那些長期目標不包括收購。這就是我們的有機增長目標。就我們進行額外收購的程度而言，我們會將其視為實現這些數字的增量。很明顯，我們對今天取得的進展感到滿意。我認為我們提前了。與此同時，還有更多事情要做。

Certainly, around -- I'll say, the structural part of gross margin improvement. And we've always talked about Phase 2. It's well underway, and we expect to make really good progress on over the next year, which will continue to supplement our efforts to improve gross margin. But I think the encouraging thing or exciting thing for us is that with these higher volumes and the changes we've already made, you can see kind of a glimpse of the future. I mean we're approaching those numbers before we've completed all the opportunities to drive improvements in the business.

當然，圍繞——我會說，毛利率改善的結構性部分。我們一直在談論第二階段。它正在進行中，我們預計明年會取得很好的進展，這將繼續補充我們提高毛利率的努力。但我認為對我們來說令人鼓舞或令人興奮的事情是，隨著這些更高的數量和我們已經做出的改變，你可以看到未來的一瞥。我的意思是，在我們完成所有推動業務改進的機會之前，我們正在接近這些數字。

Right, Mehdi, to maybe reemphasize 2 points here. Q3 is kind of a peak into the future, even before we completed all these synergies that will be realized in the integration of Artesyn and future synergies that will come after that. In addition to that, to the point that Paul made, we remain acquisitive. And the plan that we basically described to you when we put together our aspirational goals does not include acquisitions.

好的，Mehdi，也許可以在這裡再次強調 2 點。第三季度是未來的一個高峰，甚至在我們完成所有這些將在 Artesyn 整合中實現的協同效應以及之後的未來協同效應之前。除此之外，就保羅所說的而言，我們仍然貪得無厭。當我們把我們的遠大目標放在一起時，我們基本上向你描述的計劃不包括收購。

I just want to highlight that. Now just one more -- one quick question regarding the momentum. You talked about how you see the different business units trending. But do you -- you can answer qualitatively or quantitatively, was your book-to-bill above 1.0 exiting Q3?

我只想強調這一點。現在還有一個問題——一個關於勢頭的快速問題。您談到了您如何看待不同業務部門的趨勢。但是你 - 你可以定性或定量地回答，你的訂單出貨比是否高於 1.0 退出第三季度？

Yes. It's a tough question to answer because, as you know, our book-to-bill, we don't really have a book since a lot of our products, especially in semi, and to some degree, even the embedded power they're pulled. There's no order for them. They just get pulled from a jet bin or from a hub. But on balance, I would say, we feel our -- outside of maybe the catch-up in backlog. Certainly, our book-to-bill is at least 1.0 or higher.

是的。這是一個很難回答的問題，因為正如你所知，我們的訂單到賬單，我們真的沒有一本書，因為我們的很多產品，尤其是半成品，在某種程度上，甚至是它們的嵌入式電源拉。他們沒有訂單。他們只是從噴氣式垃圾箱或樞紐中被拉出來。但總的來說，我會說，我們覺得我們的 - 在積壓的追趕之外。當然，我們的訂單出貨比至少是 1.0 或更高。

And again, Mehdi...

再一次，邁赫迪...

Qualitative -- qualitatively.

定性——定性。

Right. And Mehdi, as you know, significant portion of our business is based on long-term purchasing agreements and not purchase orders that are being placed every week or every day. So these are long term, and it's a demand flow of technology, our customers pull our products from hubs when they need them.

正確的。正如您所知，Mehdi，我們業務的很大一部分是基於長期採購協議，而不是每週或每天下達的採購訂單。所以這些是長期的，這是技術的需求流，我們的客戶在需要時從中心拉出我們的產品。

Congrats.

恭喜。

Your next question is from Tom Diffely with D.A. Davidson.

你的下一個問題來自 Tom Diffely 和 D.A.戴維森。

Yuval, I was hoping you could talk a little bit more about the cross-selling opportunities. It sounds like you've had a little success now. And if you could highlight where that's coming from and what's the opportunity is, that would be great.

Yuval，我希望你能多談談交叉銷售的機會。聽起來你現在已經取得了一些成功。如果你能強調它的來源和機會是什麼，那就太好了。

Thank you, Tom. Yes, cross-selling, as we mentioned earlier in previous quarters, started to realize itself faster than we predicted. And we see an increase in number of applications that we can serve with our embedded power products, and we have launched a unique product called iHP at SEMICON West that goes into multiple platforms in the semi industry and in this case, Tom, it's [auxiliary] power, it's not process power.

謝謝你，湯姆。是的，正如我們在前幾個季度早些時候提到的那樣，交叉銷售開始實現的速度比我們預期的要快。我們看到我們的嵌入式電源產品可以服務的應用數量在增加，我們在 SEMICON West 推出了一款名為 iHP 的獨特產品，該產品進入半導體行業的多個平台，在這種情況下，湯姆，它是 [輔助】 功率，不是過程功率。

Now it doesn't mean that it's not important. These power supplies, if we do not operate, then the whole machine doesn't move. So these are really important power supplies with unique capabilities that serve the global platform, not only inside the fab, but also outside of the fab in the back end of the process, testing and packaging.

現在並不代表它不重要。這些電源，如果我們不操作，那麼整個機器就不動了。因此，這些非常重要的電源具有獨特的功能，可以服務於全球平台，不僅在晶圓廠內部，而且在晶圓廠外部的後端工藝、測試和封裝中。

So this is an area that we continue to drive in semi, but we also see additional growth coming to industrial applications as we start moving products from different product lines that basically belong to either native AE or native Artesyn. We're now cross-selling them to different markets. So it's an area of significant potential incremental growth and drives a lot of excitement. What we bring to the table in some of these applications, our global footprint, our global manufacturing capabilities and support infrastructure around the world with our high-density and high-efficiency of conversion plays well into those who start looking into efficiency of power and performance locally around the world. So we're very excited about that. And we view that as one of the revenue synergies associated with the recent acquisition.

因此，這是我們繼續在半導體領域推動的一個領域，但隨著我們開始從基本上屬於原生 AE 或原生 Artesyn 的不同產品線轉移產品，我們也看到了工業應用的額外增長。我們現在將它們交叉銷售到不同的市場。因此，這是一個具有顯著潛在增量增長的領域，並引發了很多興奮。我們在其中一些應用中所帶來的優勢、我們的全球足跡、我們的全球製造能力以及世界各地的支持基礎設施以及我們的高密度和高轉換效率對那些開始關注功率和性能效率的人產生了很好的影響在世界各地。所以我們對此感到非常興奮。我們認為這是與最近的收購相關的收入協同效應之一。

Okay. Are these situations where you have to catch the product release cycle, so it takes a few years before this gets fully integrated into the opportunity?

好的。在這些情況下，您是否必須趕上產品發布週期，因此需要幾年時間才能將其完全整合到機會中？

Well, in some of these cases, I would say, yes, it's similar design cycle. However, we had a few cases when we were asked to step in and help a customer to displace an incumbent that could not perform. An incumbent that could not perform either because of COVID-19 or could not perform because of issues related to their operational supply chain, at that point, our resiliency allows us to very quickly derivatize products to our customers' needs and will come back with a plug-and-play solution to help our customers.

好吧，在其中一些情況下，我會說，是的，這是相似的設計週期。然而，在一些案例中，我們被要求介入並幫助客戶取代無法執行的現任者。由於 COVID-19 而無法執行或由於與其運營供應鏈相關的問題而無法執行的現任者，在這一點上，我們的彈性使我們能夠非常快速地衍生產品以滿足客戶的需求，並將返回即插即用的解決方案，以幫助我們的客戶。

Great. Okay. And then as a follow-up, Paul, I'm wondering on the capacity side of your business, with a couple of segments reaching record levels, do you have the capacity to already handle, call it, a double-digit growth in semi cap next year or adding a couple of new hyperscale customers? Or would you have to add capacity?

偉大的。好的。然後作為後續行動，保羅，我想知道您業務的容量方面，有幾個部分達到創紀錄水平，您是否有能力處理，稱其為半雙位數增長明年上限還是增加幾個新的超大規模客戶？還是必須增加容量？

No. It's a good question, Tom. We believe we do have capacity to things that have constrained us this year have been, I'll say, COVID-related restraints, just the ability to get people into the factories as well as supplier constraints. And that's been the challenge. We certainly have physical capacity to continue to grow both in semi and data center across the board.

不，這是個好問題，湯姆。我們相信我們確實有能力應對今年限制我們的事情，我會說，與 COVID 相關的限制，只是讓人們進入工廠的能力以及供應商的限制。這就是挑戰。我們當然有能力繼續全面發展半數據中心和數據中心。

Yes. It's a great question, Tom. We expect our industry to continue to have -- to continue to grow, but we may see quarter-to-quarter variations driven by our customers' demand profile. So we have designed a plan for managing bursts. And we have the capacity, we have the test equipment, we have the fixed cost in place already and variable costs will vary with the volume. So we expect, not only to be able to address the capacity increase, but also to do it in a very efficient way financially.

是的。這是一個很好的問題，湯姆。我們預計我們的行業將繼續 - 繼續增長，但我們可能會看到客戶需求狀況驅動的季度變化。因此，我們設計了一個管理突發事件的計劃。我們有能力，我們有測試設備，我們已經有了固定成本，可變成本會隨著數量而變化。因此，我們期望，不僅能夠解決產能增加的問題，而且能夠在財務上以非常有效的方式做到這一點。

Your next question is from Pavel Molchanov with Raymond James.

您的下一個問題來自 Pavel Molchanov 和 Raymond James。

Obviously, the election results are still a little fluid by let's assume for the sake of argument that there will be a change in administration. And in that context, a different approach to trade with China specifically. What impact, if any, would the ending of the trade war have on your business?

顯然，選舉結果仍然有點不穩定，讓我們假設政府會發生變化。在這種情況下，特別是與中國進行貿易的不同方法。如果有的話，貿易戰的結束會對您的業務產生什麼影響？

It's a good question, Pavel. Obviously, that's -- it's a difficult one to answer since there's a lot of dynamics. But look, broadly, I think the effects of the trade and tariff war so far have had not a lot of effect on our business directly. Because we have a global footprint, we have global customers, we haven't seen a big impact. Speculatively, with a change in trade policies, improved overall economic growth and trade in that regard. And I think that's probably good broadly for economies in general and for our industry probably as well.

這是個好問題，帕維爾。顯然，這是一個很難回答的問題，因為有很多動態。但從廣義上看，我認為到目前為止，貿易戰和關稅戰的影響並沒有直接對我們的業務產生太大影響。因為我們有全球足跡，我們有全球客戶，我們沒有看到很大的影響。據推測，隨著貿易政策的改變，這方面的整體經濟增長和貿易有所改善。我認為這可能對整體經濟和我們的行業都有好處。

Yes. Our global footprint, Pavel, allows us to deliver to our customers globally and manufacture close to where our customers are. So in that sense, we haven't seen dramatic impact thus far on our business with restrictions. And for that reason, we expect to see -- unless there is an increase in geopolitical landscape that will increase GDP across the board, which will benefit us, we don't expect to see dramatic changes.

是的。我們的全球足跡 Pavel 使我們能夠向全球客戶交付產品並在客戶所在地附近進行生產。因此，從這個意義上說，到目前為止，我們還沒有看到限制對我們的業務產生巨大影響。出於這個原因，我們預計會看到——除非地緣政治格局的增加將全面增加 GDP，這將有利於我們，否則我們預計不會看到巨大的變化。

Understood. Let me turn to the service revenue. In a certain sense, you're kind of a victim of your own success. You have so much product sales now that service as a slice of the revenue mix is now less than 10%. I know you've talked in the past about kind of building up your recurring revenue stream. And in that context, is that something that would be relevant to vis-à-vis M&A, acquiring any kinds of service or perhaps software businesses if that's relevant to create or...

明白了。讓我談談服務收入。從某種意義上說，你是自己成功的犧牲品。現在產品銷售如此之多，以至於服務佔收入組合的一部分現在不到 10%。我知道你過去曾談到過建立你的經常性收入來源。在這種情況下，是否與併購相關，收購任何類型的服務或軟件業務，如果這與創建或...相關

Yes. So Pavel, let me make a comment and maybe clarify something for you relative to the comment you made about our declining service as a percent of total revenue. Significant portion of our service revenue comes from our process power business from what we call the advanced power or native AE, if you may.

是的。所以帕維爾，讓我發表評論，也許可以為您澄清一些關於您對我們的服務下降佔總收入百分比的評論。如果可以的話，我們服務收入的很大一部分來自我們的過程電源業務，我們稱之為先進電源或原生 AE。

And the reason for that these are extremely sophisticated and extremely expensive products. And when they need treatment or repair or calibration, normally, they're being shipped back to us to our labs around the world, and we take care of them and ship them back to our customers because the value of the asset is so high.

原因是這些都是極其複雜和極其昂貴的產品。當它們需要治療、維修或校準時，通常情況下，它們會被運回我們在世界各地的實驗室，我們會照顧好它們並將它們運回給我們的客戶，因為資產的價值如此之高。

In the embedded power business that came through the acquisition, many of these power supplies are not being repaired when they fail, they're being replaced. So it doesn't generate service revenue, it generates product revenue. And it's just a matter of category. Our native service business continues to grow with our installed base, and we expect the business to continue to grow, and we accelerate the growth of this business by offering service products like upgrades, retrofits, refurbishments, et cetera. So that will continue to grow, but the decline in percentage of sales total revenue is a result of the product mix.

在通過收購獲得的嵌入式電源業務中，許多此類電源在出現故障時並未得到維修，而是被更換。所以它不產生服務收入，它產生產品收入。這只是類別問題。我們的本地服務業務隨著我們的安裝基礎而持續增長，我們預計該業務將繼續增長，我們通過提供升級、改造、翻新等服務產品來加速該業務的增長。因此，這將繼續增長，但銷售總收入百分比的下降是產品組合的結果。

Now going to the other area that you asked about, software is becoming an important product for us as we launched our PowerInsight offering. We're making an investment and progress in providing software products to our customers that are adjacent to our core products and provide our customers with unique capabilities like big data analytics, predictive maintenance and process diagnostics. That will continue, and our aim is to continue to grow this business and to offer that, these software products to the market first in semi, but later in industrial and telecom networking as well.

現在轉到您詢問的另一個領域，隨著我們推出 PowerInsight 產品，軟件正在成為我們的重要產品。我們在向客戶提供與我們的核心產品相鄰的軟件產品方面進行投資並取得進展，並為我們的客戶提供大數據分析、預測性維護和過程診斷等獨特功能。這將繼續下去，我們的目標是繼續發展這項業務，並向市場提供這些軟件產品，首先是半成品，然後是工業和電信網絡。

And your next question is from Krish Sankar with Cowen and Company.

你的下一個問題來自 Cowen and Company 的 Krish Sankar。

I had 2 of them. First one, Yuval, when I look at your semi cap revenues or shipments compared with your peers and contrast it to your customers like Lam, it clearly looks like your growth rate is much higher than theirs. And I understand that your customers are also building some buffer inventory because of COVID, but do you worry that at some point next year, this should normalize and your semi cap growth rate could slow down, especially as your shipments catch up with your customers?

我有 2 個。第一個，Yuval，當我將你的半導體收入或出貨量與同行進行比較，並將其與像 Lam 這樣的客戶進行對比時，很明顯你的增長率看起來比他們的高得多。而且我知道你的客戶也因為 COVID 而建立了一些緩衝庫存，但你是否擔心在明年的某個時候，這應該會正常化並且你的半上限增長率可能會放緩，特別是當你的出貨量趕上你的客戶時？

Do you want to answer that, Paul?

你想回答這個問題嗎，保羅？

So look at -- we anticipate -- I'm trying to be careful not to predict the market for you. I'm not trying to be a market analyst. But we are prepared and have the capability to manage and respond to changes in volume and mix. And we believe that we are going to see over the long range of the industry growth. We're not going to have every quarter up into the right in the industry. We're prepared for that.

所以看看——我們預計——我盡量小心，不要為你預測市場。我不想成為一名市場分析師。但我們已準備好並有能力管理和應對數量和組合的變化。我們相信我們將看到行業的長期增長。我們不會讓每個季度都進入行業。我們為此做好了準備。

Now the other thing that I believe that happened, especially in Q3, we had a burst of demand. It was really a demand to deliver faster and quicker. And we have the capacity, we have the operation -- operational excellence to be able to respond to this demand.

現在我相信發生的另一件事，尤其是在第三季度，我們的需求激增。確實需要越來越快地交付。我們有能力，我們有運營 - 卓越運營能夠響應這一需求。

Now I'm sure that somewhere in your question, you're asking about inventory building in the industry. And I can tell you that there is some of that inventory building in the industry that some of it was driven by the -- I would say, the trade war and the restrictions of shipments. But it's not significant to the point that it will impact us dramatically going forward.

現在我確定在您的問題中的某個地方，您是在詢問行業中的庫存建設。我可以告訴你，這個行業有一些庫存增加，其中一些是由——我想說的是，貿易戰和出貨限制推動的。但這並不重要，以至於它將對我們的未來產生巨大影響。

Got it. Yuval, that's very helpful. And then just as a follow-up on the data center side of the business, you talked a lot about the hyperscale segment and your traction there. I'm kind of curious to see on the other part of the data center, which is the enterprise spending, how do you see that business trending looks like it budgets are down this year? And how do you expect enterprise to trend into next year?

知道了。尤瓦爾，這很有幫助。然後，作為業務數據中心方面的後續行動，你談到了超大規模領域和你在那裡的牽引力。我很想知道數據中心的另一部分，即企業支出，您如何看待今年的業務趨勢預算下降？您預計明年企業的發展趨勢如何？

So let me address the hyperscale first. We are -- we believe that we are in the third inning of our journey in basically designing our products into the top hyperscalers, right? And if you look, based on the information we have shared with you earlier over the last 3 quarters, we have recently got set at the ramp of our product shipments into a third hyperscaler.

因此，讓我首先解決超大規模問題。我們 - 我們相信我們正處於將我們的產品設計成頂級超大規模的旅程的第三局，對嗎？如果你看一下，根據我們在過去 3 個季度早些時候與你分享的信息，我們最近已經開始將我們的產品出貨量增加到第三個超大規模。

At the same time, we're making great progress in designing our products into additional hyperscalers. Now if you look at right now where we are in the journey, we're still highly concentrated in just a few hyperscalers. Now we believe that in the short term, we're going to see digestion in the hyperscale market as some of the hyperscalers basically use the inventory that they acquired.

與此同時，我們在將我們的產品設計成更多的超大規模器方面取得了很大進展。現在，如果您現在看看我們在旅途中所處的位置，我們仍然高度集中在幾個超大規模上。現在我們相信，在短期內，我們將看到超大規模市場的消化，因為一些超大規模企業基本上使用他們獲得的庫存。

And as we look at the market, and I think in our prepared remarks, we said we expect to see resumption of growth coming in 2021. We expect when the market recovers to do better than the market because we continue to gain market share. And we continue to gain market share as a fast follower because of our unique product offering with very competitive energy conversion efficiency and power density.

當我們審視市場時，我認為在我們準備好的發言中，我們表示我們預計 2021 年將恢復增長。我們預計當市場復甦時表現會好於市場，因為我們將繼續獲得市場份額。由於我們提供具有極具競爭力的能量轉換效率和功率密度的獨特產品，我們作為快速追隨者繼續獲得市場份額。

On the enterprise area, right now, we see IT spending is still slow, but high-performance computing will become a driver for the enterprise computing space, and that's why we highlighted this area. We are excited about it because we see more investment in the high-performance computing. New CPUs from Intel and AMD, we believe, will also be a catalyst to a cycle of investment in 2021, and we're looking forward to participate in this recovery.

在企業領域，目前我們看到 IT 支出仍然緩慢，但高性能計算將成為企業計算領域的驅動力，這就是我們強調這一領域的原因。我們對此感到興奮，因為我們看到了對高性能計算的更多投資。我們相信，來自英特爾和 AMD 的新 CPU 也將成為 2021 年投資週期的催化劑，我們期待參與這一複蘇。

And your final question comes from Weston Twigg with KeyBanc Capital Markets.

最後一個問題來自 KeyBanc Capital Markets 的 Weston Twigg。

I just wanted to follow-up on the burst of order activity that you mentioned at the end of the quarter and just mentioned in the last comment. Why doesn't this burst in demand carry through to Q4 guidance? In other words, why is Q4 were down if order activities picking up -- was picking up at the end of Q3? I'm just kind of wondering if you add some color there, like which kinds of customers we're doing it. Why it seems sort of temporary?

我只是想跟進您在本季度末提到的以及在最後一條評論中提到的訂單活動的爆發。為什麼這種需求激增沒有延續到第四季度的指導方針？換句話說，如果訂單活動在第三季度末開始回升，為什麼第四季度會下降？我只是想知道你是否在那裡添加一些顏色，比如我們正在做哪些類型的客戶。為什麼它看起來有點暫時？

Yes. It's a good question, Wes. So to clarify, when we look at that surge of orders we saw, we think that was largely prepositioning of inventory to kind of get ahead of seasonal shipment patterns and some of the geopolitical, near-term geopolitical items that Yuval just talked about by some customers, not all, but by few. Overall, we -- despite that, we expect semi to still stay strong. That's what we said in our [comments] in Q4.

是的。這是個好問題，韋斯。因此，澄清一下，當我們看到我們看到的訂單激增時，我們認為這主要是庫存的預先配置，以某種程度上領先於季節性發貨模式和 Yuval 剛剛談到的一些地緣政治、近期地緣政治項目客戶，不是全部，而是少數。總的來說，我們——儘管如此，我們預計 semi 仍將保持強勁。這就是我們在第四季度的 [評論] 中所說的。

So that's not necessarily what's driving lower guidance. We also said that we don't expect this kind of catch-up from backlog that we saw earlier in the year to repeat in Q4. And that helped Q3 quite a bit. And then secondly, we also said the data center is going to be lower based on customer-specific and industry digestion.

因此，這不一定是導致較低指導的原因。我們還表示，我們預計今年早些時候看到的這種積壓情況不會在第四季度重演。這對第三季度有很大幫助。其次，我們還表示數據中心將根據客戶特定和行業消化而降低。

So those are the primary drivers. Obviously, there's risks around COVID and other environmental things that continue on. We've largely managed those. But the 2 big items that lead to lower guidance is just we don't expect that backlog catch up to repeat. And we'll see lower impact, lower on data center. That's the digestion in the data center market that's behind a lot of that.

所以這些是主要的驅動因素。顯然，圍繞 COVID 和其他環境問題的風險仍在繼續。我們在很大程度上管理了這些。但是導致較低指導的 2 個大項目只是我們不希望積壓趕上來重複。我們會看到更低的影響，更低的數據中心。這就是其中很多背後的數據中心市場的消化。

Okay. That helps. And then the other follow-up question I have is just gross margin. The guidance is quite good, 38% to 39%. But you talked about growth in industrial, medical, telecom over the next few years. And I'm just wondering if the semi -- part of the semi demand growth this year was inventory restocking and you see the other segments grow nicely next year. Do you have a gross margin headwind in 2021 that might drive it below that 38%, 39% range? Or could we -- could you see that maybe staying in that range or getting better through the year next year?

好的。這有幫助。然後我的另一個後續問題就是毛利率。指導相當不錯，38% 到 39%。但是你談到了未來幾年工業、醫療和電信的增長。我只是想知道，今年半需求增長的一部分是否是庫存補貨，你會看到明年其他部分增長良好。您在 2021 年是否遇到毛利率逆風，可能會使其低於 38%、39% 的範圍？或者我們可以 - 你能看到明年可能保持在那個範圍內或變得更好嗎？

Yes. Obviously, mix can have some impact. But look, if you look at this year, semi is up, but so as our embedded power products are up and our gross margins are up in both areas. The impacts that we're making from a synergy perspective and consolidation perspective are having -- they're having the desired effect. And as we look into next year, we'll see some more improvement.

是的。顯然，混合會產生一些影響。但是，如果你看看今年，半成品在上升，但隨著我們的嵌入式電源產品在上升，我們在這兩個領域的毛利率也在上升。我們從協同作用的角度和整合的角度產生的影響正在產生——它們正在產生預期的效果。當我們展望明年時，我們會看到更多的改進。

So on balance, I'd say the answer to your question is no. We think we can continue to drive gross margins. But there could certainly be some mix impact if you saw big swings in the relative 2 markets.

所以總的來說，我會說你的問題的答案是否定的。我們認為我們可以繼續推動毛利率。但如果你看到相關 2 個市場出現大幅波動，肯定會產生一些混合影響。

So just to clarify, you think gross margin could trend up through the year, generally speaking, but with some mix variation?

所以澄清一下，您認為毛利率可能會在全年呈上升趨勢，一般來說，但有一些混合變化？

Yes. Generally speaking, yes.

是的。一般來說，是的。

I would now like to turn the call over to Yuval Wasserman for closing remarks.

我現在想將電話轉給 Yuval Wasserman 以作結束語。

So thanks, everybody, for joining us today. Obviously, we're extremely excited with the progress the company is making. We're extremely excited about our future projections and the future of this company. Both -- we have 4 areas of excitement, semi, data center, medical and 5G. And we expect those to drive continuous growth for the future -- for the company in the future.

所以感謝大家今天加入我們。顯然，我們對公司取得的進展感到非常興奮。我們對我們的未來預測和這家公司的未來感到非常興奮。兩者——我們有 4 個令人興奮的領域，半導體、數據中心、醫療和 5G。我們希望這些能推動公司未來的持續增長。

We're gaining share, and we are continuing to expand our presence, invest in new products that allow us to accelerate our penetration to new applications and markets. I'm looking forward to seeing many of you in December when we will provide you a deeper dive analysis of the growth trajectories, the applications, targets we serve and update on our aspirational goals. Thank you very much.

我們正在獲得份額，我們將繼續擴大我們的存在，投資新產品，使我們能夠加速我們對新應用和市場的滲透。我期待著在 12 月與你們中的許多人見面，屆時我們將為你們提供對增長軌跡、應用程序、我們服務的目標的更深入的分析，並更新我們的遠大目標。非常感謝。

Ladies and gentlemen, this concludes today's conference call. Thank you for participating. You may now disconnect.

女士們，先生們，今天的電話會議到此結束。感謝您的參與。您現在可以斷開連接。