Advanced Energy Industries Inc (AEIS) 2020 Q2 法說會逐字稿

Good day, ladies and gentlemen, and thank you for standing by. Welcome to Advanced Energy's Second Quarter 2020 Earnings Conference Call. (Operator Instructions) Please be advised that today's conference may be recorded. (Operator Instructions)

女士們先生們，美好的一天，感謝你們的支持。歡迎來到 Advanced Energy 2020 年第二季度收益電話會議。（操作員說明）請注意，今天的會議可能會被錄製。（操作員說明）

I would now like to hand the conference over to one of your speakers today, Edwin Mok, Vice President of Strategic Marketing and Investor Relations. Sir, please go ahead.

我現在想把會議交給今天的一位發言人，戰略營銷和投資者關係副總裁 Edwin Mok。先生，請繼續。

Thank you, Michelle. Good morning, everyone. Welcome to Advanced Energy's Second Quarter 2020 Earnings Conference Call. With me today are Yuval Wasserman, our CEO; Paul Oldham, our 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.advanced-energy.com. There, you will also find a slide presentation to follow along the discussion today.

謝謝你，米歇爾。大家，早安。歡迎來到 Advanced Energy 2020 年第二季度收益電話會議。今天和我在一起的是我們的首席執行官 Yuval Wasserman；我們的首席財務官 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.advanced-energy.com 上找到它。在那裡，您還將找到一張幻燈片演示文稿，以跟進今天的討論。

Before I begin, I'd like to mention that Advanced Energy will be participating at multiple investor conferences in the coming months. As the events occur, we will make the announcement.

在開始之前，我想提一下 Advanced Energy 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 that 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, August 5, 2020, and the company assumes no obligation to update them. Long-term targets presented today, which include our aspirational goals and the integration targets, should not be interpreted in any respect as guidance.

讓我提醒您，今天的電話會議包含前瞻性陳述，這些陳述存在風險和不確定性，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 8 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，不應在任何方面被解釋為指導。

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

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在非 GAAP 財務基礎上公佈。我們今天的新聞稿中可以找到我們非 GAAP 財務措施的任何解釋以及 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. This was a good quarter for Advanced Energy with strong demand across several of our markets and solid execution, which enabled us to deliver financial results at or above the high end of our expectations in a continued challenging environment.

謝謝你，埃德溫。大家早上好，感謝您加入我們的電話會議。對於 Advanced Energy 來說，這是一個不錯的季度，我們多個市場的強勁需求和穩健的執行力使我們能夠在持續充滿挑戰的環境中實現達到或超過預期高端的財務業績。

The strength in demand is fueled by multiple technology trends that are driving the data economy in the Fourth Industrial Revolution that result in an acceleration in adoption due to COVID 19. In line with our growth and diversification strategy, the acquisition of Artesyn has expanded our exposure to these trends and verticals, and we are ahead of plan in driving the integration of the combined company and achieving our synergy goals.

推動第四次工業革命中數據經濟發展的多種技術趨勢推動了需求的強勁增長，這些趨勢因 COVID 19 而加速採用。根據我們的增長和多元化戰略，收購 Artesyn 擴大了我們對這些趨勢和垂直領域的了解，我們在推動合併後公司的整合和實現我們的協同目標方面提前完成了計劃。

Our pure-play power strategy focus and our integrated functional organization provide us with the synergy, operational excellence and capabilities, which allowed us this quarter to deliver sequential growth in 3 of our 4 market verticals, resulting in revenue of $340 million. We generated non-GAAP EPS of $1.18, above our guided range, and our highest operating cash flow in 2 years.

我們的純實力戰略重點和我們整合的職能組織為我們提供了協同效應、卓越運營和能力，這使我們本季度能夠在 4 個垂直市場中的 3 個實現連續增長，從而實現 3.4 億美元的收入。我們產生了 1.18 美元的非 GAAP 每股收益，高於我們的指導範圍，並且是我們 2 年來最高的運營現金流。

In the midst of the current global pandemic, we continue to put the safety and health of our employees and our communities first. At the end of the second quarter, all of our major manufacturing sites had returned to near full capacity, operating with enhanced safety protocols and physical separation that are above and beyond local government requirements.

在當前的全球大流行中，我們繼續將員工和社區的安全與健康放在首位。在第二季度末，我們所有的主要製造基地都恢復了接近滿負荷的生產能力，在加強安全協議和物理隔離的情況下運營，這些措施超出了當地政府的要求。

Our supply chain continues to improve, but we still see some bottlenecks that require for active action to manage shortages and on-time delivery of raw materials. With the increase in global cases of COVID-19, the environment is very dynamic and unpredictable, and our results may continue to be impacted more by operating conditions and capacity than by underlying demand.

我們的供應鏈不斷改善，但我們仍然看到一些瓶頸，需要採取積極行動來管理短缺和按時交付原材料。隨著全球 COVID-19 病例的增加，環境變得非常動態和不可預測，我們的結果可能繼續受到運營條件和產能的影響，而不是潛在需求。

Turning now to our markets and performance. Demand from the semiconductor market grew once again in the second quarter driven by continued strength in foundry/logic applications and improved demand for memory applications, particularly in NAND on the transition to higher layer accounts.

現在轉向我們的市場和業績。半導體市場的需求在第二季度再次增長，這得益於晶圓代工/邏輯應用的持續強勁以及對內存應用的需求增加，特別是在向更高層帳戶過渡的 NAND 中。

Since reaching the cyclical trough in the second quarter of 2019, our sales into the semiconductor market grew by 61% year-over-year, outpacing the WFE and our peers. This strong performance confirms our market share gains, the increased power content in leading-edge applications, our expanded product portfolio and the normalization of customers' inventories. With memory investment in this cycle remaining well below the last, we believe that we're well positioned to continue to outgrow the industry when memory investments resume.

自 2019 年第二季度達到週期性低谷以來，我們在半導體市場的銷售額同比增長 61%，超過 WFE 和我們的同行。這種強勁的表現證實了我們市場份額的增加、前沿應用中功率含量的增加、我們擴大的產品組合以及客戶庫存的正常化。由於本週期的內存投資仍遠低於上一個週期，我們相信我們有能力在內存投資恢復時繼續超越該行業。

Looking into the third quarter, we expect our sales into the semiconductor market to continue to grow. As a leading innovator in semi power solutions, we continue to deliver groundbreaking technologies and products to enable our customers' innovation. At the recent SEMICON West, we introduced 3 new process power products and a new configurable embedded power supply. The process for our products are being evaluated by multiple customers for ALD, ALE, advanced conductor etch and PECVD process for leading-edge logic and memory devices.

展望第三季度，我們預計我們在半導體市場的銷售額將繼續增長。作為半功率解決方案的領先創新者，我們不斷提供突破性的技術和產品來支持我們客戶的創新。在最近的 SEMICON West 上，我們推出了 3 款新的工藝電源產品和一款新的可配置嵌入式電源。多個客戶正在評估我們產品的工藝，用於前沿邏輯和存儲設備的 ALD、ALE、高級導體蝕刻和 PECVD 工藝。

The embedded power supply, iHP, is the latest of our broad portfolio of configurable power supplies and is a high-power multi-output system that can be used for multiple auxiliary power applications in both front-end and back-end tools. We expect successful evaluation of this product to drive additional cross-selling revenue and expand our addressable market within semi.

嵌入式電源 iHP 是我們廣泛的可配置電源產品組合中的最新產品，是一種高功率多輸出系統，可用於前端和後端工具中的多個輔助電源應用。我們希望對該產品的成功評估能夠推動額外的交叉銷售收入，並擴大我們在半導體領域的潛在市場。

Beyond new products, our leading technology continued to generate new design wins and market share gains. Design wins we announced previously have resulted in RF match revenue in Q2 that is almost double year-over-year. In addition, recently, we shipped several units of our most advanced triple-frequency Navigator RF matching network. Our focused effort to -- in remote plasma sources continue to drive growth each quarter as our superior process performance and long chamber lifetime resonate with customers. Finally, recent design wins in etch and dry clean applications continue to strengthen our position at Korean OEMs.

除了新產品之外，我們的領先技術繼續帶來新的設計勝利和市場份額增長。我們之前宣布的設計勝利導致第二季度的 RF 匹配收入幾乎同比增長一倍。此外，最近，我們還運送了幾台我們最先進的三頻 Navigator RF 匹配網絡。由於我們卓越的工藝性能和較長的腔室壽命引起了客戶的共鳴，我們在遠程等離子體源方面的重點工作繼續推動每個季度的增長。最後，最近在蝕刻和乾洗應用方面的設計勝利繼續鞏固了我們在韓國 OEM 中的地位。

In our industrial and medical markets, revenue grew sequentially driven by strong demand in medical applications, improved ability to deliver products from our ramping factories and initial recovery from the product transition by a large customer we discussed in Q1. Although we grew sequentially, macro weakness exacerbated by COVID-19 continues to limit the overall industrial market. Within this environment, Q2 was one of our strongest quarters for medical products as very strong demand for COVID-related critical care and medical applications more than offset weakened demand in elective and cosmetic procedures. In addition, we won multiple new designs for applications ranging from DNA sequencing and mobile X-ray to surgical microscopes. Looking forward to Q3, we expect revenue in the industrial and medical vertical to grow sequentially, supported by ongoing demand in medical and our improved production capacity.

在我們的工業和醫療市場，由於醫療應用的強勁需求、從我們的擴建工廠交付產品的能力提高以及我們在第一季度討論的大客戶從產品轉型中初步恢復，收入環比增長。儘管我們連續增長，但 COVID-19 加劇的宏觀疲軟繼續限制整個工業市場。在這種環境下，第二季度是我們醫療產品最強勁的季度之一，因為對與 COVID 相關的重症監護和醫療應用的非常強勁的需求抵消了選擇性和整容手術的疲軟需求。此外，我們還贏得了多項新設計，應用範圍從 DNA 測序和移動 X 射線到手術顯微鏡。展望第三季度，我們預計工業和醫療垂直領域的收入將連續增長，這得益於醫療領域的持續需求和我們提高的生產能力。

Revenue in our data center computing market was down slightly from record levels last quarter with continued sequential growth in hyperscale, offset by lower enterprise computing revenue due to supply constraints. Overall, data center computing grew 89% year-over-year on a pro forma basis, and hyperscale was up more than 5x over last year's pro forma level due primarily to our market share gains. In addition, we began shipping production units to a third major hyperscale customer this year as we secured a leading position in its common data center platform. With the third major hyperscale customer, we remain confident and believe that the second half of 2020 revenue in data center computing will remain close to the robust levels seen in the first half, assuming our manufacturing capacity is not affected by future waves of COVID-19.

我們的數據中心計算市場的收入較上一季度的創紀錄水平略有下降，超大規模的持續環比增長被供應限制導致的企業計算收入下降所抵消。總體而言，數據中心計算在備考基礎上同比增長 89%，而超大規模比去年的備考水平增長了 5 倍以上，這主要是由於我們的市場份額增加。此外，由於我們在其通用數據中心平台中取得了領先地位，我們今年開始向第三個主要超大規模客戶運送生產設備。對於第三大超大規模客戶，我們仍然充滿信心，並相信假設我們的製造能力不受未來 COVID-19 浪潮的影響，2020 年下半年數據中心計算的收入將保持接近上半年的強勁水平.

At the OCP Virtual Summit in May, we launched our next-generation power shelf, which is designed to support the data center infrastructure migration to 48 volts. We have seen increased interest in our power shelf solutions from a widening group of data center customers, ranging from gaming and retail to consumer Internet and international cloud service providers.

在 5 月的 OCP 虛擬峰會上，我們推出了下一代電源架，旨在支持數據中心基礎設施向 48 伏遷移。我們發現越來越多的數據中心客戶對我們的電源架解決方案越來越感興趣，從遊戲和零售到消費者互聯網和國際雲服務提供商。

With growing demand for artificial intelligence applications, AI data center racks are projected to consume up to 7x more power than traditional data center racks. We believe our industry-leading power conversion efficiency and our continuing innovation in data center rack power architecture will both drive our growth and play a critical role in helping the industry reduce electricity consumption.

隨著對人工智能應用的需求不斷增長，預計人工智能數據中心機架的功耗將比傳統數據中心機架高出 7 倍。我們相信，我們行業領先的電源轉換效率和我們在數據中心機架電源架構方面的持續創新將推動我們的增長，並在幫助行業降低電力消耗方面發揮關鍵作用。

Beyond data centers, our industry-leading power efficiency and power density will be important enablers for improving energy sustainability across many industries. Recently at SEMICON West, our customers, Applied Materials, announced its SuCCESS2030 initiative. Advanced Energy is one of the 6 strategic partners working with Applied towards a more sustainable supply chain. By advancing our energy-efficient products and our environmentally efficient operations, we are adhering to our commitment to sustainability leadership.

除了數據中心，我們行業領先的電源效率和功率密度將成為提高許多行業能源可持續性的重要推動力。最近在 SEMICON West，我們的客戶 Applied Materials 宣布了其 SuCCESS2030 計劃。Advanced Energy 是與 Applied 合作打造更可持續供應鏈的 6 個戰略合作夥伴之一。通過推進我們的節能產品和我們的環保運營，我們堅持我們對可持續發展領導地位的承諾。

Finally, demand from our telecom networking markets increased from the first quarter as these markets appeared to be reaching a bottom. In addition, revenues in the second quarter benefited from high volume of shipments of several prior design wins across multiple customers. While investment across global telecom infrastructure continued to be delayed by COVID-19 and geopolitical tension, strong demand for data center networking is generating increased sales for our products during the quarter with our next-generation interconnect router design due to our industry-leading power density.

最後，我們的電信網絡市場的需求從第一季度開始增加，因為這些市場似乎已經觸底。此外，第二季度的收入受益於多個客戶贏得的多項先前設計的大量出貨量。雖然全球電信基礎設施的投資繼續因 COVID-19 和地緣政治緊張局勢而推遲，但由於我們行業領先的功率密度，對數據中心網絡的強勁需求正在通過我們的下一代互連路由器設計在本季度推動我們產品的銷售增長.

Looking into the third quarter, we expect to see revenue maintained around these levels. Long term, global deployment of 5G infrastructure will drive new requirements for more advanced power systems.

展望第三季度，我們預計收入將維持在這些水平附近。從長遠來看，5G 基礎設施的全球部署將推動對更先進電源系統的新要求。

To summarize, our operational excellence and execution allowed us to capitalize on strong demand from our customers and increased revenue. As a pure-play power leader, we grew our market leadership, introduced innovative new products and realized the synergistic benefits of the Artesyn acquisition. While COVID-19 is still affecting macroeconomic and operating conditions, this crisis is also accelerating the adoption of the technologies behind the Fourth Industrial Revolution, potentially increasing the long-term organic growth rate in our core markets.

總而言之，我們卓越的運營和執行使我們能夠利用客戶的強勁需求並增加收入。作為純粹的電力領導者，我們擴大了市場領導地位，推出了創新的新產品，並實現了收購 Artesyn 的協同效益。雖然 COVID-19 仍在影響宏觀經濟和經營狀況，但這場危機也加速了第四次工業革命背後技術的採用，有可能提高我們核心市場的長期有機增長率。

Overall, we're executing our strategic plan to grow faster than our markets and to accelerate earnings growth. And we are making good progress towards achieving our long-term aspirational goals of over $1.5 billion in revenue, over $6.5 non-GAAP EPS and over 23% ROIC.

總的來說，我們正在執行我們的戰略計劃，以比我們的市場增長更快並加速盈利增長。我們在實現收入超過 15 億美元、非 GAAP 每股收益超過 6.5 美元和 ROIC 超過 23% 的長期理想目標方面取得了良好進展。

I'd like to thank our customers, shareholders, partners and our valued employees for your support, especially during these challenging times. I look forward to speaking with many of you in the upcoming quarter.

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，尤其是在這些充滿挑戰的時期。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. Paul?

有了這個，讓我把電話轉給保羅。保羅？

Thank you, Yuval, and good morning, everyone. 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. This quarter, we recorded $5.8 million in restructuring costs related to the transition of manufacturing from Shenzhen to Malaysia and other actions associated with synergies related to the Artesyn acquisition. We also recorded $1.1 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.

謝謝 Yuval，大家早上好。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。本季度，我們記錄了 580 萬美元的重組成本，這些重組成本與製造業從深圳轉移到馬來西亞以及與收購 Artesyn 相關的協同效應相關的其他行動有關。我們還記錄了與長期租賃和養老金負債相關的 110 萬美元的非現金、未實現外匯損失。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。

In our second quarter, we delivered outstanding financial results, exceeding expectations and guidance for revenue, gross margin, operating margin and cash flow generation. Our team's strong execution in the challenging environment enabled our non-GAAP EPS to be above our widened range and our annualized return on invested capital to increase to over 20%. Cash increased by $28 million, and we generated additional synergies from the integration of Artesyn.

在我們的第二季度，我們交付了出色的財務業績，超出了收入、毛利率、營業利潤率和現金流產生的預期和指導。我們團隊在充滿挑戰的環境中的強大執行力使我們的非 GAAP 每股收益高於我們擴大的範圍，我們的年化投資資本回報率增加到 20% 以上。現金增加了 2800 萬美元，我們通過整合 Artesyn 產生了額外的協同效應。

Second quarter revenue was a record $340 million, up 7.7% from $315 million last quarter and up 152% from $135 million a year ago. On a pro forma basis, including a full quarter of Artesyn revenue in prior periods, Q2 revenue grew 24% year-over-year with strong growth in semiconductor and data center computing markets, partially offset by declines in industrial and medical and telecom and networking. Excluding Artesyn, organic revenue grew 11.5% sequentially and 34% year-over-year to $180 million.

第二季度收入達到創紀錄的 3.4 億美元，比上一季度的 3.15 億美元增長 7.7%，比一年前的 1.35 億美元增長 152%。在備考基礎上，包括雅特生科技前期一整季度的收入，第二季度收入同比增長 24%，半導體和數據中心計算市場的強勁增長，部分被工業和醫療以及電信和網絡的下滑所抵消.不包括 Artesyn，有機收入環比增長 11.5%，同比增長 34% 至 1.8 億美元。

Turning to revenue by market. Sales in semiconductor in Q2 were $145 million, up nearly 9% from the strong first quarter and up 61% year-over-year. On an organic basis, semi revenue grew 60% year-over-year with strong demand from foundry/logic and higher investment in NAND memory. Semi product sales were up over 9% sequentially and 88% year-over-year. Semi service revenue also grew about 9% from last quarter but declined 8% from last year due to COVID-19-related capacity constraints in some of our service centers. Overall, our semiconductor revenues have grown faster than WFE and the vast majority of our peers, both year-to-date and year-over-year in Q2.

轉向按市場劃分的收入。第二季度半導體銷售額為 1.45 億美元，比強勁的第一季度增長近 9%，同比增長 61%。在有機的基礎上，由於代工/邏輯的強勁需求以及對 NAND 存儲器的更高投資，半導體收入同比增長 60%。半成品銷售額環比增長 9% 以上，同比增長 88%。由於我們的一些服務中心與 COVID-19 相關的容量限制，半服務收入也比上一季度增長了約 9%，但比去年下降了 8%。總體而言，我們的半導體收入增長速度快於 WFE 和絕大多數同行，無論是年初至今還是第二季度的同比增長。

Revenue from our industrial and medical markets was $71 million, up 14% sequentially as a result of growth related to critical care medical devices, increased thin film market demand and our improved ability to deliver products. On a pro forma basis, revenue declined 23% year-over-year driven by general macro 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 7100 萬美元，環比增長 14%，這是由於與重症監護醫療設備相關的增長、薄膜市場需求增加以及我們交付產品的能力提高所致。在備考的基礎上，由於我們幾個工業部門的普遍宏觀疲軟，加上 COVID-19 危機加劇，收入同比下降 23%。

Data center computing revenue was $83 million, down 3% from the exceptionally strong first quarter but up 89% year-over-year on a pro forma basis. Hyperscale continued to grow, offset by lower enterprise revenues, mainly due to capacity constraints in our Philippines facility.

數據中心計算收入為 8300 萬美元，比異常強勁的第一季度下降 3%，但按備考計算同比增長 89%。超大規模業務繼續增長，但被企業收入下降所抵消，這主要是由於我們菲律賓工廠的產能限制。

Telecom and networking revenue was $40 million, up nearly 20% sequentially on solid shipments of our design wins. On a pro forma basis, revenues declined almost 14% year-over-year as the global telecom infrastructure investment continued to be impacted by the pandemic.

電信和網絡收入為 4000 萬美元，環比增長近 20%，這歸功於我們贏得設計的穩定出貨量。在備考基礎上，由於全球電信基礎設施投資繼續受到大流行的影響，收入同比下降近 14%。

Non-GAAP gross margin for the quarter expanded almost 100 basis points sequentially to 38.7%. Margins benefited from substantially better-than-expected product mix and material cost and positive other cost of sale items, partially offset by increased costs related to COVID. In addition, we improved factory utilization overall and are beginning to see the impact of some of our synergy actions. Although we do not expect all of these favorable items to repeat next quarter, we continue to make steady progress on our goal to improve overall gross margins to greater than 40%.

本季度非 GAAP 毛利率環比增長近 100 個基點至 38.7%。利潤率得益於遠好於預期的產品組合和材料成本以及積極的其他銷售項目成本，部分被與 COVID 相關的成本增加所抵消。此外，我們提高了工廠的整體利用率，並開始看到我們的一些協同行動的影響。儘管我們預計下個季度不會重複所有這些有利項目，但我們將繼續穩步推進我們的目標，將整體毛利率提高到 40% 以上。

Non-GAAP operating expenses were $77.8 million, up $3 million from last quarter, primarily related to increased R&D investments and variable expenses associated with the higher revenues. Expense as a percent of sales improved almost 100 basis points, demonstrating the synergy and leverage in our model and at under 23% of sales is in the top quartile of our competitors even as we continue to make critical investments to drive growth.

非 GAAP 運營費用為 7780 萬美元，比上一季度增加 300 萬美元，這主要與增加的研發投資和與收入增加相關的可變費用有關。費用佔銷售額的百分比提高了近 100 個基點，證明了我們模型中的協同作用和槓桿作用，即使我們繼續進行關鍵投資以推動增長，但銷售額佔銷售額的 23% 以下處於我們競爭對手的前四分之一。

Non-GAAP operating income improved to $53.8 million and 15.8% of revenue. Non-GAAP other expense was approximately $500,000, down from $3.5 million last quarter, primarily on the timing of an insurance claim and subsequent recovery and on lower net interest expense. We expect total other expense to be in the $1 million to $1.5 million range going forward.

非 GAAP 營業收入增至 5380 萬美元，佔收入的 15.8%。非 GAAP 其他費用約為 500,000 美元，低於上一季度的 350 萬美元，主要是因為保險索賠和隨後的恢復時間以及較低的淨利息費用。我們預計未來其他總費用將在 100 萬至 150 萬美元之間。

Our non-GAAP tax expense was $7.9 million or 14.7%, primarily as a result of integrating Artesyn into our structure and favorable mix of foreign earnings. Looking forward, we expect the GAAP and non-GAAP tax rate to remain around 15% to 17%.

我們的非 GAAP 稅收支出為 790 萬美元或 14.7%，這主要是由於將 Artesyn 整合到我們的結構中以及有利的海外收入組合。展望未來，我們預計 GAAP 和非 GAAP 稅率將保持在 15% 至 17% 左右。

Non-GAAP earnings for the quarter was $1.18 per share, up 30% from $0.91 last quarter on higher revenue and margins. EPS was up over 150% from $0.45 a year ago. The Artesyn acquisition continues to contribute positively to our consolidated results. The acquisition was solidly accretive in Q2, adding over $0.30 per share to non-GAAP earnings, including the interest expense of financing. And as of the end of Q2, realized synergies to date were over $20 million.

本季度非美國通用會計準則每股收益為 1.18 美元，較上一季度的 0.91 美元增長 30%，收入和利潤率均有所提高。每股收益較一年前的 0.45 美元增長了 150% 以上。對 Artesyn 的收購繼續為我們的綜合業績做出積極貢獻。此次收購在第二季度實現了穩步增長，使非 GAAP 每股收益增加了 0.30 多美元，其中包括融資的利息支出。截至第二季度末，迄今為止實現的協同效應已超過 2000 萬美元。

As a result, we have largely achieved our Phase 1 synergy goals after the first 3 quarters, well ahead of our original plan of 18 to 24 months. As we integrate Artesyn, we have found new opportunities to further improve our costs, allowing us to reinvest part of the achieved synergies into R&D to drive faster long-term growth while keeping our long-term operating margin goal of over 20%. Based on the great progress we have made, we remain confident in meeting or exceeding our long-term targets of $40 million of annualized synergies and $1.50 per share in EPS accretion.

因此，我們在前 3 個季度後基本實現了第一階段的協同目標，遠遠超過了我們原定的 18 至 24 個月的計劃。在整合 Artesyn 的過程中，我們找到了進一步降低成本的新機會，使我們能夠將部分已實現的協同效應重新投資於研發，以推動更快的長期增長，同時保持我們超過 20% 的長期營業利潤率目標。基於我們取得的巨大進步，我們仍然有信心實現或超過 4000 萬美元的年度協同效應和每股 1.50 美元的每股收益增長的長期目標。

Turning now to the balance sheet. We ended the quarter with cash and marketable securities of $383 million, up $28 million from Q1. Operating cash flow from continuing operations was $38.6 million, our highest level since Q2 of 2018. Receivables increased on higher sales, and DSO rose by 1 day to 62 days. Inventory increased by $25 million. And turns were 3.2x, reflecting investments we made to manage risk in the COVID environment.

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 3.83 億美元，比第一季度增加 2800 萬美元。來自持續經營的經營現金流為 3860 萬美元，是我們自 2018 年第二季度以來的最高水平。應收賬款因銷售額增加而增加，DSO 增加 1 天至 62 天。庫存增加了 2500 萬美元。轉為 3.2 倍，反映了我們為管理 COVID 環境中的風險所做的投資。

Payables were $180 million, representing 77 days of DPO. Total days of net working capital were 97, up 6 days from last quarter. Capital expenditures for the quarter were $7.3 million, and depreciation was $6.6 million. During the quarter, we repaid $4.4 million of debt and ended with total bank debt of $331 million, resulting in gross debt leverage of 1.8x. We did not repurchase any shares during the quarter.

應付賬款為 1.8 億美元，相當於 DPO 的 77 天。淨營運資金總天數為 97 天，比上一季度增加 6 天。本季度的資本支出為 730 萬美元，折舊為 660 萬美元。本季度，我們償還了 440 萬美元的債務，最終銀行債務總額為 3.31 億美元，導致總債務槓桿率為 1.8 倍。本季度我們沒有回購任何股票。

Now let me turn to guidance. In the near term, we continue to see strong demand in our semiconductor market and anticipate continued modest improvement in industrial and medical. We expect demand in the data center computing and telecom and networking markets to fluctuate at around the current levels. However, we continue to see changes in the environment related to COVID-19 as many governments reimplement certain levels of quarantine.

現在讓我轉向指導。短期內，我們繼續看到半導體市場的強勁需求，並預計工業和醫療領域將繼續適度改善。我們預計數據中心計算以及電信和網絡市場的需求將在當前水平附近波動。但是，隨著許多政府重新實施某些級別的隔離，我們繼續看到與 COVID-19 相關的環境發生變化。

Factoring in the limited visibility and ongoing operating and macroeconomic risk related to COVID, we are guiding Q3 revenue to $350 million, plus or minus $25 million. Based on anticipated mix, volume and ongoing COVID-related costs, we expect non-GAAP gross margins to be in the 37% to 38% range, up 150 basis points from last quarter's guidance as we gain more traction on our synergy and structural improvements. Operating expenses are expected to be about flat, including increased engineering investments related to a new advanced dielectric etch evaluation program with a strategic OEM. As a result, we expect non-GAAP earnings at $1.15 per share, plus or minus $0.25.

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，我們將第三季度收入指導為 3.5 億美元，上下浮動 2500 萬美元。根據預期的組合、數量和持續的 COVID 相關成本，我們預計非 GAAP 毛利率將在 37% 至 38% 的範圍內，比上一季度的指導高出 150 個基點，因為我們在協同效應和結構改進方面獲得更多牽引力.預計運營費用將基本持平，包括增加與戰略 OEM 的新的高級介電蝕刻評估計劃相關的工程投資。因此，我們預計非 GAAP 每股收益為 1.15 美元，上下浮動 0.25 美元。

To summarize, we delivered a great quarter operationally and financially with record revenues, improvement in gross margin and operating margins and almost 30% sequential increase to our non-GAAP earnings. Our pure-play power strategy is enabling us to capitalize on market and technology trends across many of our verticals, accelerate growth and realize synergy and operating benefits ahead of our plan. We are well on our way to building the business and financial model of a top-tier industrial technology company, and we are on track to meeting or exceeding our stated long-term aspirational goals.

總而言之，我們在運營和財務方面都取得了不錯的成績，收入創歷史新高，毛利率和營業利潤率有所提高，非 GAAP 收益環比增長近 30%。我們的純實力戰略使我們能夠利用我們許多垂直領域的市場和技術趨勢，加速增長並在我們的計劃之前實現協同效應和運營效益。我們正朝著建立一流工業技術公司的業務和財務模式的方向邁進，我們有望實現或超越我們既定的長期遠大目標。

With that, we will take your questions. Operator?

這樣，我們將回答您的問題。操作員？

(Operator Instructions) Our first question comes from the line of Tom Diffely with D.A. Davidson.

（操作員說明）我們的第一個問題來自 Tom Diffely 和 D.A.戴維森。

So first, I'm curious, as we ramp up the semiconductor business right now, you mentioned that it's obviously a combination of markets and share gains. But I'm curious, are you seeing the beginnings of an inventory increase at your customers yet? Or is that still to come?

所以首先，我很好奇，當我們現在擴大半導體業務時，你提到這顯然是市場和份額收益的結合。但我很好奇，您是否看到客戶庫存開始增加？還是那還來得及？

I can't comment on that, Tom. I don't think we have enough visibility to report on our customers' inventory. We -- I'm sorry?

我不能對此發表評論，湯姆。我認為我們沒有足夠的知名度來報告我們客戶的庫存。我們——對不起？

I was just going to say that, yes, through the cycle, typically, the inventory gets bled off when things slow down. But then you outgrow the market because both your end markets go up faster. And also, there's a build in the channel. So maybe not specifically for customers but just in general, are you seeing the build of your tools in the marketplace from an inventory point of view?

我只是想說，是的，在整個週期中，通常情況下，當事情放緩時，庫存就會減少。但是後來你的增長超過了市場，因為你的兩個終端市場都增長得更快。而且，頻道中有一個構建。因此，也許不是專門針對客戶，而是一般而言，您是否從庫存的角度看到了市場上工具的構建？

Yes. Tom, as Yuval said, it's hard for us to have exact visibility to our customers. But I can say that we continue to see steady pull. Our bin sizes, our levels, aren't really changing. So we're not seeing increase in inventory in the bins. And our sense is our customers are consuming inventory at the rate we're shipping it.

是的。Tom，正如 Yuval 所說，我們很難準確了解我們的客戶。但我可以說我們繼續看到穩定的拉動。我們的垃圾桶大小，我們的水平，並沒有真正改變。所以我們沒有看到垃圾箱中的庫存增加。我們的感覺是，我們的客戶正在以我們發貨的速度消耗庫存。

Yes. We don't see any abnormal behavior, Tom. And our demand continued to be strong. And we're very constructive towards Q3 within semi.

是的。湯姆，我們沒有看到任何異常行為。我們的需求繼續強勁。我們對半決賽中的第三季度非常有建設性。

Great. And then, Paul, when you look at the new products, what do you think the impact will be on margins over time as they start to become more accepted in the marketplace?

偉大的。然後，保羅，當您查看新產品時，您認為隨著時間的推移，隨著它們開始在市場上被更多人接受，對利潤率的影響是什麼？

Well, generally, our new products, Tom, have more innovation, more capability in semi, more power or accuracy. And as a result, we expect to sustain or grow our margins with our new products, as we've done historically.

好吧，總的來說，我們的新產品 Tom 具有更多的創新、更多的半功能、更多的力量或準確性。因此，我們希望通過我們的新產品維持或增加我們的利潤，就像我們過去所做的那樣。

Another comment related to that, Tom. As we develop new products, we rely on a future combined operation organization and platform that is a combination of a traditional AE and the Artesyn very efficient operation. So we expect to benefit from a much more efficient manufacturing and lower cost manufacturing for our future products. Some of these products will be vertically integrated.

湯姆，與此相關的另一條評論。在我們開發新產品時，我們依賴於未來的聯合運營組織和平台，它是傳統 AE 和 Artesyn 非常高效運營的結合。因此，我們希望從未來產品的更高效製造和更低成本製造中獲益。其中一些產品將進行垂直整合。

And of course, as we transition the product portfolio and complete the synergy and activities with Artesyn, all of these things will contribute overall to our ability to continue to drive gross margins higher and above our goal of 40%.

當然，隨著我們轉變產品組合併完成與 Artesyn 的協同作用和活動，所有這些都將有助於我們繼續提高毛利率並超過我們 40% 的目標。

Yes. And we're making great progress toward that.

是的。我們正在朝著這個方向取得很大進展。

Yes. Okay. And finally, Paul, you mentioned that there were some supply constraints. It seemed like that was more centered around the data center business. I was wondering if you could explain why it hit that segment of your market more than the rest.

是的。好的。最後，保羅，你提到有一些供應限制。看起來這更像是圍繞著數據中心業務。我想知道您是否可以解釋為什麼它比其他市場更能打動您的那部分市場。

Yes. I think as you look at -- at this point, our factories are largely up and running. But we still have point issues with supply. You noticed our inventory was also up this quarter. Part of that was an effort to make sure we had adequate supply to meet our customer needs. But you still need a full kit to ship products. And then in this case, that particular market and a few products there were impacted the most by supply constraints in the factory and material.

是的。我認為，正如你所看到的——在這一點上，我們的工廠基本上已經啟動並運行。但我們仍然存在供應方面的問題。您注意到本季度我們的庫存也有所增加。其中一部分是為了確保我們有足夠的供應來滿足客戶的需求。但是您仍然需要一個完整的套件來運送產品。然後在這種情況下，那個特定的市場和那裡的一些產品受到工廠和材料供應限制的影響最大。

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

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

Paul, I guess I'm scratching my head a little bit on that gross margin guidance. I know you guys had a much stronger gross margin in the second quarter. But when I look at the revenue mix shift in Q3, it sounds like semiconductor, which is your highest gross margin business, is going to be growing the fastest. So -- and overall, revenue is up. So you should get better absorption in the factories. And I'm just trying to understand why margin could be down 120 basis points at the midpoint.

保羅，我想我對那個毛利率指導有些摸不著頭腦。我知道你們在第二季度的毛利率要高得多。但是，當我查看第三季度的收入組合轉變時，聽起來您毛利率最高的業務半導體將是增長最快的。所以 - 總的來說，收入增加了。所以你應該更好地專注於工廠。我只是想了解為什麼保證金會在中點下降 120 個基點。

Yes. It's a good question, Quinn. This quarter, as I explained, we had pretty much everything go right. Obviously, we had COVID costs, which were unfavorable, but we -- but that continues. So as we look forward, we just don't see all of those things continuing to fall to the right side. And although semi is up, our mix within our overall product portfolio in the different product categories has as much impact as just one market or another. And so on balance, when we look at the operating activities in the third quarter, we do see margins down a little bit.

是的。這是個好問題，奎因。正如我所解釋的，本季度我們幾乎一切順利。顯然，我們有 COVID 成本，這是不利的，但我們 - 但這種情況仍在繼續。因此，當我們向前看時，我們只是看不到所有這些事情都繼續落到正確的一邊。儘管 semi 上升了，但我們在不同產品類別的整體產品組合中的組合所產生的影響與一個市場或另一個市場一樣大。總而言之，當我們審視第三季度的經營活動時，我們確實看到利潤率有所下降。

I'll also note that while our factories are largely up and running, we are focused on reducing inventory. And we have inventory position in the hubs and other areas which we expect to draw down, which is part of the revenue increase in Q3, not necessarily all higher factory output.

我還注意到，雖然我們的工廠大部分都在運轉，但我們專注於減少庫存。我們在樞紐和其他地區有庫存，我們預計會減少，這是第三季度收入增長的一部分，不一定是所有更高的工廠產量。

Got it. Understood. And then I guess, just looking toward -- with revenue guided to about $1.4 billion on an annualized basis, it looks like you guys are well on your way to your aspirational 2022 goal. Just wondering if you had any updated thoughts. I mean, it certainly seems like you're tracking to that kind of target perhaps even before 2022. But just as you look out, WFE, I think, is expected to be up high single digits to 10% next year. In that kind of environment, how would you look at that aspirational goal? And how close do you think you can get next year?

知道了。明白了。然後我想，只是展望 - 年收入預計約為 14 億美元，看起來你們正在朝著 2022 年的理想目標邁進。只是想知道您是否有任何更新的想法。我的意思是，看起來你甚至可能在 2022 年之前就在追踪那種目標。但正如你所看到的，我認為 WFE 預計明年將以高個位數增長至 10%。在那樣的環境下，你會如何看待那個雄心勃勃的目標？你認為明年能有多接近？

Good question, Quinn. And as we do almost every year, our intent is to update our goals, long-term goals, as we complete our strategic planning process. And within the next few months, we will find the right platform to announce our updated goals.

問得好，奎因。正如我們幾乎每年所做的那樣，我們的目的是在完成戰略規劃過程時更新我們的目標和長期目標。在接下來的幾個月內，我們將找到合適的平台來宣布我們更新後的目標。

And our next question comes from the line of Amanda Scarnati with Citi.

我們的下一個問題來自花旗銀行的 Amanda Scarnati。

First question I have is on the data center side of the business, and I just want to clarify that I heard a comment correctly. I think you mentioned that the data center business was down and partly due to capacity constraints. Can you just talk about how that business is doing and if you're seeing more of an impact from demand or more of an impact from capacity constraints? And if you expect that demand -- or the constraints to recover any time near term?

我的第一個問題是關於業務的數據中心方面，我只是想澄清一下，我聽到的評論是正確的。我想你提到數據中心業務出現下滑，部分原因是容量限制。您能否談談該業務的運作方式，以及您是否看到更多來自需求的影響或更多來自容量限制的影響？如果您預計這種需求 - 或限制會在短期內隨時恢復？

So we -- more specifically about the demand part of -- the capacity part of the question, this specific revenue stream that goes into data centers, not the hyperscale, was more affected by capacity constraints related to COVID-19, mainly in the Philippine factories as, I think, Paul, you said. We continue to see the market continue long term to be strong. We said we expect, in general, to be at the same level going forward, while hyperscale will -- will grow at much faster rate for us because of our continuing market share gain and adding more customers of hyperscale giants to our list of customers. And that will take -- very similar to what we see in other capital equipment-related sales, it requires working closely with customers, with their engineers, going through the qualification and evaluation and certification. And at that point, we migrate into a ramp. And we are, right now, we believe that we are practically in the third inning of our journey into hyperscale.

因此，我們 - 更具體地說是關於問題的需求部分 - 容量部分，進入數據中心的特定收入流，而不是超大規模，更多地受到與 COVID-19 相關的容量限制的影響，主要是在菲律賓工廠，我想，保羅，你說。我們繼續看到市場長期保持強勁。我們表示，總體而言，我們預計未來將處於同一水平，而超大規模將 - 將以更快的速度增長，因為我們持續獲得市場份額，並將更多超大規模巨頭的客戶添加到我們的客戶名單中。這將需要——與我們在其他資本設備相關銷售中看到的非常相似，它需要與客戶、他們的工程師密切合作，通過資格、評估和認證。那時，我們遷移到斜坡上。現在，我們相信我們實際上正處於超大規模之旅的第三局。

So we expect long term to continue to benefit from our growing presence and to grow faster than the market. Long term, there's no doubt that the data center hyperscale world would grow as the use of data and the need for storage of data will continue to grow. Though the underlying demand is very strong, we may see fluctuations mainly affected by COVID-19, in general, digestion period of these very large data centers. But we are very excited about our future as a fast follower to the market from 2 years ago. We're getting tremendous momentum and continue to gain design wins primarily because of our very advanced power density and power conversion efficiency.

因此，我們預計長期將繼續受益於我們不斷增長的業務，並以比市場更快的速度增長。從長遠來看，毫無疑問，數據中心的超大規模世界將會隨著數據的使用和數據存儲需求的持續增長而增長。儘管潛在需求非常強勁，但我們可能會看到主要受 COVID-19 影響的波動，一般來說，這些超大型數據中心的消化期。但作為 2 年前市場的快速追隨者，我們對未來感到非常興奮。由於我們非常先進的功率密度和功率轉換效率，我們正在獲得巨大的動力並繼續贏得設計。

Yes. That's right. And I'll just note, Amanda, as you've all said, quarter-to-quarter, we can see -- we'll see a little variation just because of some new customers, some of the supply issues. But as context, recall that this business is up 89%, almost 2x from where it was a year ago and from even late last year. So we're sustaining these much higher levels of business and expect that to continue.

是的。這是正確的。我會注意到，阿曼達，正如你們所說的，每個季度，我們可以看到 - 我們會看到一些變化，只是因為一些新客戶，一些供應問題。但作為背景，回想一下，這項業務增長了 89%，幾乎是一年前甚至去年年底的兩倍。因此，我們正在維持這些更高水平的業務，並希望這種情況繼續下去。

Okay. And then on the industrial and medical side of the business, are you seeing any sort of increase in or speeding up rather of qualification time due to COVID and needing to get new products to the market? Or was the increase that you saw in medical really due to existing things that you already had in the pipeline?

好的。然後在業務的工業和醫療方面，您是否看到由於 COVID 和需要將新產品推向市場而增加或加快了資格認證時間？還是您在醫療領域看到的增長真的是由於您已經在籌備中的現有事物？

I'm not sure if we see a dramatic change in the evaluation time of the -- of our products in medical. I think we -- obviously, we saw a very mixed picture recently due to the increase in demand for our products for solutions that are directly related to COVID-19, like respirators or gene sequencing tools. We continue to look at the medical application space as a growth engine for us. We are benefiting from the need, the current need for more capacity, but we also have new design wins that go into diagnostic and therapeutic applications that are not related to COVID-19.

我不確定我們的醫療產品的評估時間是否會發生巨大變化。我認為我們 - 顯然，由於與 COVID-19 直接相關的解決方案（如呼吸器或基因測序工具）對我們產品的需求增加，我們最近看到了非常複雜的情況。我們繼續將醫療應用領域視為我們的增長引擎。我們受益於需求，當前對更多容量的需求，但我們也有新的設計勝利，用於與 COVID-19 無關的診斷和治療應用。

To give you like a calibration, I think we grew our marketing -- our medical revenue from $50 million to $75 million.

為了給你一個校準，我認為我們擴大了營銷——我們的醫療收入從 5000 萬美元增加到 7500 萬美元。

Yes. We're about $75 million.

是的。我們大約有 7500 萬美元。

Yes. We're $75 million right now. And last time we talked about it, we were 15 -- $50 million.

是的。我們現在有 7500 萬美元。上次我們談論它時，我們才 15 歲——5000 萬美元。

Yes. We said over $50 million.

是的。我們說超過 5000 萬美元。

Over $50 million. And we expect to continue to grow in this area. This is an area of investment, of interest. It has all the attributes that we like to see in a target market, customized solutions for critical applications, sticky relationship with a customer. And once you get designed in and qualified, it becomes a long-term annuity.

超過 5000 萬美元。我們希望在這一領域繼續發展。這是一個值得投資的領域。它具有我們希望在目標市場中看到的所有屬性、針對關鍵應用程序的定制解決方案、與客戶的粘性關係。一旦您獲得設計資格並獲得資格，它就會成為長期年金。

And our next question comes from the line of Mehdi Hosseini with Susquehanna.

我們的下一個問題來自 Mehdi Hosseini 和 Susquehanna 的台詞。

I joined the call late, so I apologize if I'm asking a question that has already come up. A couple of big picture items. I go back to the targeted goals of more than $1.5 billion of revenue and pro forma earning of $650 million. So you -- on the revenue side, if I just look at your June quarter and annualize it, you're not that far from the targeted revenue. But on the EPS, perhaps there is some catching up, and that has to do with additional leverage that is realized due to a better cost structure. Is that the right way to think about what you did and how you're tracking against this long-term growth?

我加入電話會議的時間較晚，所以如果我問的問題已經出現，我深表歉意。幾個大圖片項目。我回到超過 15 億美元的收入和 6.5 億美元的預估收入的目標。所以你 - 在收入方面，如果我只看你的 6 月季度並將其年化，你離目標收入並不遠。但在 EPS 上，也許有一些趕上，這與由於更好的成本結構而實現的額外槓桿有關。這是思考您所做的事情以及您如何跟踪這種長期增長的正確方法嗎？

Let me talk about the revenue. Yes, let me talk about our revenue, Mehdi. As I said earlier, I think maybe you came late to the call, we anticipate to update our long-term aspirational goals within a few months after we finish our strategic planning process. And as we said earlier multiple times, in Q1 and this quarter, we were making progress, really great progress towards our long-term goals. And I think in some aspects of the plan, we are ahead of plan. We're ahead of plan in the integration of Artesyn. We're ahead of plan in our growth rate. So when it comes to updating the future projection of the company, we will provide that within a few months.

先說收入吧。是的，讓我談談我們的收入，Mehdi。正如我之前所說，我想你可能來晚了，我們預計在完成戰略規劃流程後的幾個月內更新我們的長期理想目標。正如我們之前多次說過的那樣，在第一季度和本季度，我們取得了進展，在實現我們的長期目標方面取得了巨大進展。而且我認為在計劃的某些方面，我們領先於計劃。我們在整合 Artesyn 方面領先於計劃。我們的增長率超前於計劃。因此，在更新公司未來的預測時，我們將在幾個月內提供。

And about gross margin, do you want to maybe talk about that?

關於毛利率，你想談談嗎？

Yes. Let me just talk about the rest of the model. Because you're right, we are approaching on the revenue side, we're getting closer. But recall that our model was a fully synergized model. And we're making great progress on synergies. As I said, we basically achieved our Phase 1 synergy goals within the first 3 quarters. We thought that would take us 18 to 24 months. But we need to achieve our Phase 2 goals to achieve that, the EPS, to your comments. So we feel like we're in good shape. We're actually tracking a little bit ahead of our plan. We're seeing the benefit from faster revenue growth as many of our markets have recovered and we've grown share in data centers. But we'll continue to work on executing that synergy plan and driving the leverage in the business over the next several quarters, driving towards those long-term goals.

是的。讓我談談模型的其餘部分。因為你是對的，我們正在接近收入方面，我們越來越接近了。但請記住，我們的模型是一個完全協同的模型。我們在協同作用方面取得了很大進展。正如我所說，我們在前三個季度基本實現了第一階段的協同目標。我們認為這需要 18 到 24 個月的時間。但我們需要實現我們的第 2 階段目標，以實現 EPS，以表達您的意見。所以我們覺得我們的狀態很好。我們實際上比我們的計劃提前了一點。隨著我們的許多市場已經復蘇並且我們在數據中心的份額有所增加，我們看到了更快的收入增長帶來的好處。但我們將繼續致力於執行該協同計劃並在接下來的幾個季度推動業務的槓桿作用，以實現這些長期目標。

One more comment about this, Mehdi. I wouldn't expect our business evolution to be linear, right? We live in a dynamic environment. We live in a very -- especially now, very large fluctuations related to COVID-19. But the one thing we also need to note, as we note in our prepared comments today, we are selectively and purposefully investing more in R&D in some really, really important growth engines that in some time during the trajectory, in developing our long-term strategy, we make decisions that are related to future growth. As we made a comment today, we have increased our R&D spend going forward to address some really unique growth opportunities in the semiconductor etch that we're pursuing right now in collaboration with key OEMs. And we have decided to increase our spending in R&D. And as I said earlier, we're very bullish about our ability to meet our long-term goals, but it may not be linear.

Mehdi，對此還有一個評論。我不希望我們的業務發展是線性的，對吧？我們生活在一個動態的環境中。我們生活在一個非常——尤其是現在，與 COVID-19 相關的非常大的波動中。但我們還需要注意一件事，正如我們在今天準備好的評論中指出的那樣，我們正在有選擇地、有目的地對一些真正非常重要的增長引擎進行研發投資，在發展軌蹟的某個時間段，在發展我們的長期戰略，我們做出與未來增長相關的決策。正如我們今天發表的評論，我們已經增加了研發支出，以解決我們目前正在與主要 OEM 合作尋求的半導體蝕刻中一些真正獨特的增長機會。我們決定增加研發支出。正如我之前所說，我們非常看好我們實現長期目標的能力，但它可能不是線性的。

Sure. It's just -- I think in how your list of problems have changed on a year-over-year basis, and now you have good problems, and that leads to my follow-up question. You're also showing a rebound in the net cash per share. And what are the plans for that, assuming that, that trend were to continue?

當然。只是——我認為你的問題清單逐年發生變化，現在你有很好的問題，這引出了我的後續問題。您還顯示每股淨現金出現反彈。假設這種趨勢繼續下去，對此有何計劃？

And then maybe I'll just add one more follow-up. How do you see semiconductor revenue into next year, assuming that memory mix would pick up and that's where your sweetest spot is? And I expect continued growth, but I just -- I would love to hear your view. So what to do with the cash? And...

然後也許我會再添加一個跟進。你如何看待明年的半導體收入，假設內存組合會回升，那是你最喜歡的地方？我期待持續增長，但我只是——我很想听聽你的看法。那麼現金怎麼辦呢？和...

So let me -- yes, let me start with capital deployment. We were very open and clear about our capital deployment strategy, and we will continue to focus on actively looking for additional acquisitions. We were, obviously, doing a great job deleveraging our debt, and we periodically review internally and with our Board whether or not we would like to execute on opportunistic shares buyback and other return to shareholders. We have a strong deleveraging power and cash generation power, and our intent is to deploy our capital.

所以讓我 - 是的，讓我從資本部署開始。我們對我們的資本部署戰略非常開放和明確，我們將繼續專注於積極尋找更多的收購。顯然，我們在債務去槓桿方面做得很好，我們定期在內部和董事會審查我們是否願意執行機會主義股票回購和其他股東回報。我們有很強的去槓桿能力和現金生成能力，我們的意圖是部署我們的資本。

When it comes to long-term semiconductor projections, listen to our customers. At SEMICON West and reading some of you guys' reports, we're very constructive about the future. And we believe that long term, 2021 is perceived and expected to be a strong year for semi. And obviously, we will be benefited from that, not only because of the fact that we will grow with the market. We continue to gain market share. We continue to cross-sell embedded power products into semi. We continue to increase our SAM. And for that reason, we continue to focus on our mission to grow faster than the market we serve.

在談到長期半導體預測時，請聽取我們客戶的意見。在 SEMICON West 和閱讀你們一些人的報告，我們對未來非常有建設性。我們認為，從長遠來看，2021 年被認為並預計將是半強勁的一年。顯然，我們將從中受益，不僅僅是因為我們將與市場一起成長。我們繼續獲得市場份額。我們繼續將嵌入式電源產品交叉銷售到半成品中。我們繼續增加我們的 SAM。出於這個原因，我們繼續專注於我們的使命，即比我們所服務的市場增長得更快。

And our next question comes from the line of Krish Sankar with Cowen and Company.

我們的下一個問題來自 Krish Sankar 與 Cowen and Company 的合作。

I had a few of them. You were -- is there a way you can characterize or quantify what your market share on the semiconductor side is between NAND and DRAM?

我有幾個。你是——有沒有一種方法可以描述或量化你在半導體方面的市場份額在 NAND 和 DRAM 之間的份額？

We never looked at that, that way, and we never dissected our market share between DRAM and NAND. Some of our products end up on our customers' machines that may end up to either/or, logic or memory or DRAM and NAND, not always we know exactly what the target application is within the fab. So I don't believe we have that.

我們從來沒有這樣看待過，我們也從未剖析過我們在 DRAM 和 NAND 之間的市場份額。我們的一些產品最終會出現在我們客戶的機器上，這些機器可能最終會成為邏輯或內存或 DRAM 和 NAND，我們並不總是確切地知道晶圓廠內的目標應用程序是什麼。所以我不相信我們有那個。

Got it. Got it. No worries. And then on the data center side of your revenues, is there a way to characterize what percentage of your data center revenue is from hyperscale?

知道了。知道了。不用擔心。然後在您的收入的數據中心方面，有沒有一種方法可以描述您的數據中心收入中有多少百分比來自超大規模？

I don't -- do we...

我不——我們...

We haven't broken that out at this point, Krish.

Krish，我們目前還沒有解決這個問題。

All right. No worries. And then just a final question for Yuval. When you look at hyperscale and look at some of the telecom networking side, my understanding is that most of them are like kind of going towards like 48-volt on the equipment side. Do you actually see the products merging down the road between hyperscale and telecom? Or do you think there's still going to be a distinct difference between the 2?

好的。不用擔心。然後是 Yuval 的最後一個問題。當你看超大規模和一些電信網絡方面時，我的理解是他們中的大多數都在設備方面朝著 48 伏的方向發展。你真的看到產品在超大規模和電信之間融合嗎？或者你認為兩者之間仍然會有明顯的區別嗎？

We see some talks about cross-pollination. Right now, from our perspective, we are excited and focused on the migration to 48 volts in data center hyperscale. And we bring to the table unique technical advantage that came with the Artesyn innovation and engineering teams, more specifically related to power conversion efficiency and power density, which means basically you can increase the power without dramatically increase your footprint or your volume of the box, and that means power density.

我們看到一些關於異花授粉的討論。現在，從我們的角度來看，我們很興奮並專注於在超大規模數據中心遷移到 48 伏。我們帶來了 Artesyn 創新和工程團隊帶來的獨特技術優勢，更具體地說是與功率轉換效率和功率密度相關，這意味著基本上您可以在不顯著增加佔地面積或盒子體積的情況下增加功率，這意味著功率密度。

Related to that, the ability to go to market quickly with innovative and leading solutions as a -- and time to market plays an important role here. And as we go from a fast follower into a leader and enable customers with time to market, we also believe that our margins will improve.

與此相關的是，通過創新和領先的解決方案快速進入市場的能力以及進入市場的時間在這裡起著重要作用。隨著我們從快速追隨者轉變為領導者並使客戶能夠及時上市，我們也相信我們的利潤率將會提高。

And our next question comes from the line of Pavel Molchanov with Raymond James.

我們的下一個問題來自 Pavel Molchanov 和 Raymond James 的台詞。

Kind of a quirky regulatory issue. Now that Hong Kong is no longer kind of treated independently under U.S. law for trade purposes, I'm curious if you have any customers in Hong Kong or purchasing through Hong Kong that may be affected by the technology transfer restrictions.

有點古怪的監管問題。現在，根據美國法律，香港在貿易方面不再受到獨立對待，我想知道您在香港的客戶或通過香港購買的產品是否可能受到技術轉讓限制的影響。

Yes. We don't have any large customers that we service out of Hong Kong. Obviously, we have operations there. There are transactions that flow through there, but we don't see any change or impact to us as a result of the recent changes from a day-to-day or transaction activity.

是的。我們在香港以外沒有服務的大客戶。顯然，我們在那裡有業務。有交易流經那裡，但我們看不到日常或交易活動的最近變化對我們有任何改變或影響。

Understood. Okay. That's good to hear. And then a balance sheet question. You're continuing to pay down pretty modest amounts, $4.4 million of debt per quarter. But obviously, you have $380 million of cash on the balance sheet. Is there any rationale for accelerating the debt paydown since that is one of your stated goals for capital allocation?

明白了。好的。聽起來還不錯。然後是資產負債表問題。您將繼續償還相當有限的數額，即每季度 440 萬美元的債務。但顯然，您的資產負債表上有 3.8 億美元的現金。加速償還債務是否有任何理由，因為這是您既定的資本配置目標之一？

Yes. It's a really good question, Pavel. And as you've seen, we have brought the debt down modestly. Our view, as the environment has changed with the lower interest rates and, frankly, our ability to lock in extremely favorable financing, is that we don't anticipate bringing that debt down very quickly. We'll see how interest rates go. But as you recall, with the swap we put in place earlier in Q2, our net cost -- our total cost of debt is around 1.25% or lower. So that's -- in that rate environment, we don't see really an advantage to accelerating the debt payback beyond the modest amounts we've been doing.

是的。帕維爾，這是一個非常好的問題。正如你所看到的，我們已經適度降低了債務。我們的觀點是，隨著環境隨著利率降低而發生變化，坦率地說，我們有能力鎖定極其有利的融資，我們預計不會很快降低債務。我們將看看利率如何變化。但正如您所記得的那樣，通過我們在第二季度早些時候進行的互換，我們的淨成本——我們的總債務成本約為 1.25% 或更低。所以這就是——在那種利率環境下，我們認為除了我們一直在做的適度數額之外，加速償還債務並沒有真正的優勢。

Okay. And then just a quick one on your geographic sales mix. Latin America right now stands out as the hardest hit global region from the pandemic. I'm curious, what exposure, if any, you have to customers kind of Mexico and South America regions?

好的。然後快速介紹一下您的地理銷售組合。拉丁美洲目前是全球受疫情影響最嚴重的地區。我很好奇，您對墨西哥和南美地區的客戶有什麼接觸（如果有的話）？

Certainly, South America, I'd say, it's quite small. There is some, mostly from embedded power products. And Mexico, there is certainly some exposure because we have customers that have -- for embedded power that have operations in Mexico. But all in, it would be our smallest of our various regions.

當然，南美洲，我會說，它很小。有一些，主要來自嵌入式電源產品。而墨西哥，肯定會有一些風險，因為我們有客戶 - 對於在墨西哥開展業務的嵌入式電源。但總而言之，這將是我們各個地區中最小的。

And I'm showing no further questions. And I would like to turn the conference back over to Yuval Wasserman for any further remarks.

我沒有再提出任何問題。我想將會議轉回給 Yuval Wasserman，請他發表進一步的評論。

Thanks, everybody, for joining us today. We had a great quarter despite of COVID-19. We continue to outperform and do better on the short-term and long-term plans. Excited about the projection of the company and the future of the company, and I'm looking forward to talking to many of you during the quarter. Thank you.

謝謝大家今天加入我們。儘管有 COVID-19，我們還是有一個很棒的季度。我們在短期和長期計劃上繼續跑贏大盤，做得更好。對公司的預測和公司的未來感到興奮，我期待著在本季度與你們中的許多人交談。謝謝。

Ladies and gentlemen, thank you for participating in today's conference. This does conclude the program, and you may all disconnect. Everyone, have a great day.

女士們，先生們，感謝你們參加今天的會議。這確實結束了程序，你們都可以斷開連接。大家，祝你有美好的一天。