Advanced Energy Industries Inc (AEIS) 2020 Q1 法說會逐字稿

Ladies and gentlemen, thank you for standing by, and welcome to the Q1 2020 Advanced Energy Industries Earnings Conference Call. (Operator Instructions) Please be advised that today's conference is being recorded. (Operator Instructions)

女士們，先生們，感謝您的支持，歡迎參加 2020 年第一季度先進能源行業收益電話會議。（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, 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。謝謝。請繼續，先生。

Thank you, operator. Good morning, everyone. Welcome to Advanced Energy's First 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.advanced-energy.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 年第一季度收益電話會議。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.advanced-energy.com 上找到它。您還可以在此處找到幻燈片演示，以跟進我們今天的討論。

Before I begin, I would like to mention that AE will be participating at multiple investor conferences in the coming months, mostly virtually. As events occur, we'll make the announcements.

在開始之前，我想提一下，AE 將在未來幾個月內參加多個投資者會議，主要是虛擬會議。當事件發生時，我們會發佈公告。

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 of future performance. Information concerning these risks and uncertainties is found on our filings with the SEC. All forward-looking statements are based on management's estimates, projections and assumptions as of today, May 6, 2020, and the company assumes no obligation to update them.

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 5 月 6 日的估計、預測和假設，公司不承擔更新這些陳述的義務。

Long-term targets presented today, which include our aspirational goals and the integration targets, should not be interpreted in any respect as guidance.

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。

Today's call also contains non-GAAP financial measures. An explanation of these measures as well as reconciliations between GAAP and non-GAAP measures are contained in our press release and the slide presentation.

今天的電話會議還包含非 GAAP 財務措施。我們的新聞稿和幻燈片演示中包含對這些措施的解釋以及 GAAP 和非 GAAP 措施之間的調節。

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

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

Thank you, Edwin. Good morning, everyone, and thank you for joining us on this call. Let me begin today by saying that our main efforts and focus over the last 3 months have been the safety and health of our employees, their families and our global partners. This is an extraordinary time, and I'm proud that Advanced Energy has managed to both protect our employees and deliver on our customers' commitments, which resulted in a quarter exceeding all of our expected financial metrics.

謝謝你，埃德溫。大家早上好，感謝您加入我們的電話會議。今天首先讓我說，過去 3 個月我們的主要努力和重點是我們員工、他們的家人和我們全球合作夥伴的安全和健康。這是一個非凡的時刻，我很自豪 Advanced Energy 成功地保護了我們的員工並兌現了客戶的承諾，這導致四分之一的業績超出了我們所有預期的財務指標。

In summary, revenue of $315.5 million was above the midpoint of our guidance and non-GAAP earnings per share of $0.91 was at the higher end of our widened guidance range.

總之，3.155 億美元的收入高於我們指引的中點，非 GAAP 每股收益 0.91 美元處於我們擴大指引範圍的較高端。

Let me first give you an update on our response and activities during this unprecedented time. As early as January, recognizing this pandemic could have global implications, we put together an executive-led rapid response team to take decisive actions to ensure everybody's health and safety, long before governments began issuing mandates. Those early preparations allowed us to safely reopen our China factories and ramp our production shortly after the Lunar New Year shutdown. We also instituted working-from-home guidelines and implemented sophisticated IT solutions, which allowed us to work virtually. In order to continue our innovation and product development projects, we provided our key innovators with home mini labs and with safe and secured access to our main labs to utilize large equipment when required. At present, all of our factories are operational, with our China factories back to full capacity while those in the Philippines and Malaysia are running at lower rates due to local government restrictions.

首先，讓我向您介紹我們在這個前所未有的時期的應對措施和活動的最新情況。早在 1 月份，我們就意識到這種流行病可能會產生全球影響，因此早在各國政府開始發布命令之前，我們就組建了一個由行政領導的快速反應小組，採取果斷行動確保每個人的健康和安全。這些早期準備工作使我們能夠在農曆新年停產後不久安全地重新開放中國工廠並提高產量。我們還制定了在家工作指南並實施了複雜的 IT 解決方案，這使我們能夠進行虛擬工作。為了繼續我們的創新和產品開發項目，我們為我們的主要創新者提供了家庭迷你實驗室，並讓他們可以安全可靠地進入我們的主要實驗室，以便在需要時使用大型設備。目前，我們所有的工廠都在運營，我們的中國工廠恢復了滿負荷生產，而菲律賓和馬來西亞的工廠由於當地政府的限製而以較低的速度運行。

Within our facilities, all employees are provided with the proper protective equipment, and we have implemented our own safety protocols and physical separation structures and methods that are above and beyond local government requirements. We are proud that many of our products contribute to the effort to fight this pandemic. AE has a long history of designing and developing power supplies for use in many critical therapeutic medical products like ventilators and diagnostic equipment like CT scanners and blood analyzers. Our power supplies also power analytical instruments used in life science applications like gene sequencing and vaccine development. In addition, our power supplies are critical to the production of semiconductor devices and in the operation of data centers, which are seeing increased demand driven by the need to stay connected and the resulting increase in data usage. The key role that our products play in improving lives have never been so clear as during the past several months.

在我們的設施內，所有員工都配備了適當的防護設備，並且我們實施了自己的安全規程以及物理隔離結構和方法，這些都超出了當地政府的要求。我們感到自豪的是，我們的許多產品都為抗擊這一流行病做出了貢獻。AE 在設計和開發電源方面有著悠久的歷史，這些電源用於許多關鍵的治療性醫療產品，如呼吸機和診斷設備，如 CT 掃描儀和血液分析儀。我們的電源還為基因測序和疫苗開發等生命科學應用中使用的分析儀器供電。此外，我們的電源對於半導體設備的生產和數據中心的運行至關重要，由於保持連接的需要以及由此導致的數據使用量的增加，需求不斷增加。我們的產品在改善生活方面發揮的關鍵作用從未像過去幾個月那樣清晰。

Entering this crisis in a position of strength allowed us to address both health and safety concerns as well as business continuity challenges with confidence in our ability to weather the storm. Our balance sheet at the end of the quarter is well capitalized, with an increased cash position and reduced debt, which is further improved by a lower effective fixed interest rate after we completed an interest rate swap agreement at the beginning of Q2.

以強大的實力進入這場危機，使我們能夠應對健康和安全問題以及業務連續性挑戰，並對我們渡過難關的能力充滿信心。我們在本季度末的資產負債表資本充足，現金頭寸增加，債務減少，在我們在第二季度初完成利率互換協議後，較低的有效固定利率進一步改善了這一狀況。

Our strong backlog demonstrates the solid demand momentum from our customers and industries. While the impact of this virus on the global economy and our market is unclear, longer term we believe the growth drivers in our market verticals remain intact, and in some cases, may even be accelerated. We remain confident in our ability to serve our customers and industries that provide the essential technologies and applications that enable the data economy and the Fourth Industrial Revolution.

我們大量的積壓訂單表明我們的客戶和行業有著強勁的需求勢頭。雖然這種病毒對全球經濟和我們市場的影響尚不明朗，但從長遠來看，我們相信我們垂直市場的增長動力保持不變，在某些情況下甚至可能加速增長。我們仍然相信我們有能力為我們的客戶和行業提供服務，這些行業提供支持數據經濟和第四次工業革命的基本技術和應用程序。

That said, we recognize that this crisis will put pressure on our business. Although demand in several markets further strengthened during Q1 and is continuing into Q2, government-mandated factory shutdowns and supply chain issues drove our revenue to decline sequentially in the first quarter. Further constraints in our factories could limit our ability to fully service demand during Q2.

也就是說，我們認識到這場危機會給我們的業務帶來壓力。儘管第一季度幾個市場的需求進一步增強並持續到第二季度，但政府強制關閉工廠和供應鏈問題導致我們的收入在第一季度連續下降。我們工廠的進一步限制可能會限制我們在第二季度全面滿足需求的能力。

Taking a prudent approach to the current environment, we have implemented some temporary actions to curtail discretionary spending. We also stopped our opportunistic share repurchase activity, which we initiated early in the crisis as share prices declined. At the same time, we did not delay any critical activities or programs that will drive new product introductions, design wins and future growth. Using our remote innovation capabilities allows us to continue to innovate and engage our core talent during this time.

對當前環境採取審慎態度，我們實施了一些臨時措施來削減可自由支配的開支。我們還停止了機會主義的股票回購活動，這是我們在危機初期因股價下跌而發起的。與此同時，我們沒有推遲任何將推動新產品推出、設計獲勝和未來增長的關鍵活動或計劃。利用我們的遠程創新能力，我們可以在這段時間內繼續創新並吸引我們的核心人才。

As we navigate through this crisis, the benefits of our strategy and especially the acquisition of Artesyn Embedded Power have become evident. Our distributed world-class global manufacturing and supply chain operations were able to optimize both product and material management during a time of significant disruption, allowing us to deliver on our customer commitments. As we continue to integrate these 2 organizations and realize accelerated synergies, we find increasing benefits from combined operations.

在我們渡過這場危機的過程中，我們戰略的好處，尤其是收購 Artesyn Embedded Power 的好處已經變得顯而易見。我們分佈式的世界級全球製造和供應鏈運營能夠在重大中斷期間優化產品和材料管理，使我們能夠兌現對客戶的承諾。隨著我們繼續整合這兩個組織並實現加速的協同效應，我們發現聯合運營帶來的好處越來越多。

Now let me turn to our business. Demand in our semiconductor markets was strong in the quarter, driven mostly by foundry/logic with some contribution from memory applications. We saw growth across most regions, with particular strength in Korea, China and Taiwan. Demand growth was augmented by key design wins across different applications. Most notably, our RF and remote plasma source products continue to gain momentum. Our RF -- our RPS won a significant new design for a chamber clean application at a top-tier equipment OEM. In addition, we shipped our first embedded power products into a wafer fab equipment customer in Q1, displacing an incumbent.

現在讓我談談我們的業務。本季度我們的半導體市場需求強勁，主要由代工/邏輯驅動，內存應用也有一定貢獻。我們在大多數地區都看到了增長，尤其是在韓國、中國和台灣。跨不同應用的關鍵設計勝利促進了需求增長。最值得注意的是，我們的射頻和遠程等離子源產品繼續獲得發展勢頭。我們的 RF -- 我們的 RPS 贏得了頂級設備 OEM 的腔室清潔應用的重要新設計。此外，我們在第一季度向一家晶圓廠設備客戶運送了我們的第一款嵌入式電源產品，取代了現有產品。

We see additional opportunity for cross-selling these products into the semi market in the future.

我們看到了未來將這些產品交叉銷售到半成品市場的更多機會。

Looking forward, in spite of the COVID-19 impact on supply chain, we expect demand to remain strong in Q2.

展望未來，儘管 COVID-19 對供應鏈產生了影響，但我們預計第二季度的需求將保持強勁。

During the quarter, Advanced Energy was recognized with a 2019 Supplier Excellence Award by our largest customer, Applied Materials. It is gratifying to see that our efforts and investment in industry-leading service and aftermarket products are recognized by our customers.

在本季度，Advanced Energy 獲得了我們最大的客戶 Applied Materials 授予的 2019 年供應商卓越獎。很高興看到我們在行業領先的服務和售後產品方面的努力和投資得到了客戶的認可。

Turning to our Industrial & Medical market. Revenue was down significantly from last quarter. COVID-19-related limitations on multiple production sites impacted our ability to ship. However, the majority of the sequential decline was driven by a pushout by a large industrial customer, who is transitioning to a new product architecture to support a future ramp. Pending supply chain and factory capacity in the current environment, we expect to recover a portion of the pushout revenue in the current quarter.

轉向我們的工業和醫療市場。收入較上一季度大幅下降。多個生產基地與 COVID-19 相關的限制影響了我們的發貨能力。然而，連續下降的主要原因是大型工業客戶的推出，他們正在過渡到新產品架構以支持未來的增長。在當前環境下，待定的供應鍊和工廠產能，我們預計本季度將恢復部分推出收入。

During Q1, demand for our power supplies serving medical applications started to increase meaningfully in March as we are integral to the manufacture of diagnostic and respiratory equipment that are currently in high demand. Looking into Q2, we expect demand in Industrial & Medical applications to increase driven by continuing growth in market needs.

在第一季度，對我們服務於醫療應用的電源的需求在 3 月份開始顯著增加，因為我們是目前需求量很大的診斷和呼吸設備製造不可或缺的一部分。展望第二季度，我們預計在市場需求持續增長的推動下，工業和醫療應用的需求將會增加。

Our revenue from Data Center Computing applications grew sequentially on strong demand from hyperscale customers, which was up over 50% quarter-over-quarter. While we were already anticipating this hyperscale ramp going into the quarter, we saw an acceleration during Q1 to support remote work and education initiatives. This more than offset seasonal softness in enterprise computing, which was further impacted by COVID-19.

由於超大規模客戶的強勁需求，我們來自數據中心計算應用程序的收入環比增長超過 50%。雖然我們已經預計本季度會出現這種超大規模增長，但我們在第一季度看到了加速增長，以支持遠程工作和教育計劃。這遠遠抵消了企業計算的季節性疲軟，後者受到 COVID-19 的進一步影響。

Our team did a great job delivering on the strengthened demand during Q1. At the same time, we secured multiple next-generation design wins across several hyperscale and enterprise customers, validating our technology leadership. Looking in the current quarter, we expect demand in this market to continue at elevated level on accelerated hyperscale investment and the contribution of our design wins.

在第一季度，我們的團隊在滿足強勁的需求方面做得很好。與此同時，我們贏得了多個超大規模和企業客戶的多項下一代設計，證明了我們的技術領先地位。展望本季度，我們預計該市場的需求將繼續保持在較高水平，原因是加速的超大規模投資和我們設計勝利的貢獻。

As was indicated in our last earnings call, Telecom & Networking demand remains low with further delays in networking spending and 5G investment due to the uncertain environment. While we see selected spots of strength driven by our prior design wins, overall OEM market conditions are likely to remain challenging in the current quarter as well. Longer term, though, we see this market space as another key enabler of the data economy, and we expect to see resumption of growth in spending in the future.

正如我們在上次財報電話會議中指出的那樣，由於不確定的環境，電信和網絡需求仍然很低，網絡支出和 5G 投資進一步推遲。雖然我們看到我們之前的設計勝利推動了選定的優勢點，但整個 OEM 市場條件在本季度也可能仍然充滿挑戰。不過，從長遠來看，我們將這一市場空間視為數據經濟的另一個關鍵推動力，我們預計未來支出將恢復增長。

In conclusion, our operational excellence and agility enable us to overcome significant market challenges in the quarter and to deliver solid results. The crisis brought out the best in our organization as we focused our efforts on protecting our employees and communities, serving our customers, innovating and doing our part in managing through this pandemic. We became financially stronger during the quarter, with solid profitability and higher net cash balance. The results are a strong validation of our strategic direction and initiatives. While the near-term impact of this crisis is still unknown, we are confident and committed to our long-term aspirational goal of over $1.5 billion in revenue, over $6.5 non-GAAP EPS and over 23% ROIC.

總之，我們的卓越運營和敏捷性使我們能夠克服本季度的重大市場挑戰並取得可觀的業績。這場危機讓我們的組織發揮了最大的作用，因為我們集中精力保護我們的員工和社區、服務我們的客戶、進行創新並儘我們的一份力量來應對這一流行病。我們在本季度的財務狀況更加強勁，盈利能力穩健，淨現金餘額更高。結果有力地驗證了我們的戰略方向和舉措。雖然這場危機的近期影響尚不清楚，但我們有信心並致力於實現我們的長期理想目標，即收入超過 15 億美元、非 GAAP 每股收益超過 6.5 美元和 ROIC 超過 23%。

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.

有了這個，讓我把電話轉給保羅。

Thank you, Yuval, and good morning. Let me start by wishing everyone and their family good health and safety. I would also like to echo Yuval's congratulations on our team's extraordinary efforts in ensuring safe operations while delivering results during these challenging times.

謝謝你，Yuval，早上好。首先，我祝愿每個人和他們的家人身體健康、平安。我還想與 Yuval 一樣祝賀我們的團隊在這些充滿挑戰的時期為確保安全運營並取得成果所做的非凡努力。

This was a good quarter for us financially as we exceeded our revenue guidance in a difficult environment, improved gross margins, delivered earnings at the high end of our range and up from last quarter, generated strong operating cash flow and realized annualized adjusted ROIC of over 16%. The company's balance sheet and liquidity are solid with $355 million in cash, positive net cash even after our debt issuance last year and the ability to access our $150 million unused line of credit. In addition, early in Q2 we converted the majority of our variable rate debt to a historically low effective fixed rate of 1.27%, locking in lower interest payments for the balance of the term. Finally, we continue to make great progress on the Artesyn integration, which was solidly accretive this quarter, putting us on track to achieve our Phase I goals ahead of our 18- to 24-month target.

這對我們的財務來說是一個很好的季度，因為我們在困難的環境中超出了我們的收入指導，提高了毛利率，實現了我們區間的高端收益並高於上一季度，產生了強勁的運營現金流並實現了超過年化調整後的 ROIC 16%。公司的資產負債表和流動性穩健，擁有 3.55 億美元的現金，即使在我們去年發行債券之後仍為正淨現金，並且能夠獲得我們 1.5 億美元未使用的信貸額度。此外，在第二季度初，我們將大部分可變利率債務轉換為 1.27% 的歷史低位有效固定利率，從而鎖定了該期限餘額的較低利息支付。最後，我們繼續在 Artesyn 整合方面取得重大進展，該整合在本季度穩步增長，使我們有望在 18 至 24 個月的目標之前實現我們的第一階段目標。

Now let me turn to our Q1 financial results, and then I'll make some comments on Q2. Total revenue for the first quarter of 2020 was $315.5 million, down from $338.3 million last quarter due to COVID-19-related supply and production constraints. On a pro forma basis, including a full quarter of Artesyn revenue in prior periods, Q1 revenue grew 6.6% year-over-year, with strong growth in semi and data centers partially offset by declines in Industrial & Medical and Telecom & Networking. Excluding Artesyn, organic revenue grew about 2% sequentially and 15% year-over-year to $161.5 million. COVID-19-related government restrictions in our production facilities and the impact on our supply chain reduced our Q1 total revenue by approximately 10% as we implied during our last quarterly call.

現在讓我談談我們第一季度的財務業績，然後我將對第二季度發表一些評論。由於與 COVID-19 相關的供應和生產限制，2020 年第一季度的總收入為 3.155 億美元，低於上一季度的 3.383 億美元。在備考基礎上，包括雅特生科技前期一整季度的收入，第一季度收入同比增長 6.6%，半導體和數據中心的強勁增長部分被工業與醫療以及電信與網絡的下滑所抵消。不包括 Artesyn，有機收入環比增長約 2%，同比增長 15% 至 1.615 億美元。正如我們在上一季度電話會議中暗示的那樣，與 COVID-19 相關的政府對我們生產設施的限制以及對我們供應鏈的影響使我們第一季度的總收入減少了約 10%。

Turning to revenue by market. Revenue in our semiconductor vertical for Q1 was $134 million, up 7% from a very strong fourth quarter and up 46% year-over-year. On an organic basis, semi revenue grew 44% year-over-year, with strong demand from foundry/logic and increased memory investment. On a product basis, semi revenue was up 10.4% sequentially and 66% year-over-year, while semi service revenue was down approximately 10% from last quarter and 11% from last year on lower fab utilization in the U.S. and Europe, combined with capacity constraints in some of our service centers due to COVID-19. Revenue from our Industrial & Medical markets was $62 million, down substantially from $97 million last quarter. On a pro forma basis, revenue declined 32% year-over-year. The results were a combination of a product transition by a large industrial customer, resulting in a pushout of orders into future quarters, continued macro weakness in several of our industrial sectors, and COVID-related government-imposed production constraints, particularly out of our Philippine facility.

轉向按市場劃分的收入。第一季度我們的半導體垂直收入為 1.34 億美元，比非常強勁的第四季度增長 7%，同比增長 46%。在有機基礎上，半導體收入同比增長 44%，這得益於代工/邏輯的強勁需求以及內存投資的增加。按產品計算，半成品收入環比增長 10.4%，同比增長 66%，而半成品服務收入較上一季度下降約 10%，較去年下降 11%，原因是美國和歐洲的晶圓廠利用率較低，加起來由於 COVID-19，我們的一些服務中心的容量受到限制。我們的工業和醫療市場收入為 6200 萬美元，遠低於上一季度的 9700 萬美元。按備考計算，收入同比下降 32%。結果是一個大型工業客戶的產品轉型導致訂單推遲到未來幾個季度，我們幾個工業部門的宏觀經濟持續疲軟，以及與 COVID 相關的政府施加的生產限制，特別是在我們的菲律賓之外設施。

Data Center Computing revenue was $86 million, up 11% from the strong results in the prior quarter. On a pro forma basis, revenues were up 63% year-over-year, driven by increased hyperscale investments and our recent design wins. Telecom & Networking revenue was $34 million, down 12.5% from the prior quarter. On a pro forma basis, revenues declined about 43% year-over-year as challenging market conditions in telecom OEM demand persisted.

數據中心計算收入為 8600 萬美元，比上一季度的強勁業績增長 11%。在備考基礎上，受超大規模投資增加和我們最近的設計勝利的推動，收入同比增長 63%。電信和網絡收入為 3400 萬美元，比上一季度下降 12.5%。在備考基礎上，由於電信 OEM 需求的挑戰性市場條件持續存在，收入同比下降約 43%。

Gross margin for the quarter was 35.6%. Cost of sales included approximately $5.1 million of acquisition-related charges and $1.5 million of facility expansion and relocation costs, primarily related to our strategic investment in the Malaysia factory. Most of the $5.1 million in acquisition-related costs will not continue in future quarters.

本季度毛利率為 35.6%。銷售成本包括約 510 萬美元的收購相關費用和 150 萬美元的設施擴建和搬遷成本，主要與我們對馬來西亞工廠的戰略投資有關。510 萬美元的收購相關成本中的大部分將不會在未來幾個季度繼續存在。

On a non-GAAP basis, gross margin was 37.8%. Gross margins benefited from favorable product mix, lower material costs and generally lower other cost of sale items. In addition, we did not experience significant COVID-related costs, as government and local benefits largely offset our incremental expenses and production disruptions in the quarter. However, we do not expect these benefits to continue into Q2. GAAP operating expenses in Q1 were $86.4 million. Expenses included $5 million of intangibles amortization, $2.8 million of acquisition-related charges, $2.8 million of stock compensation and $1 million of restructuring and transition expenses. Non-GAAP operating expenses were $74.7 million, down nearly $4 million from last quarter. We continue to execute our strategy of investing in critical R&D programs, primarily in RF technology and products with strategic customers, while controlling discretionary spending and driving synergies of the combined company.

按非美國通用會計準則計算，毛利率為 37.8%。毛利率受益於有利的產品組合、較低的材料成本和普遍較低的其他銷售項目成本。此外，我們沒有經歷與 COVID 相關的重大成本，因為政府和地方福利在很大程度上抵消了我們本季度的增量支出和生產中斷。但是，我們預計這些好處不會持續到第二季度。第一季度的 GAAP 運營費用為 8640 萬美元。費用包括 500 萬美元的無形資產攤銷、280 萬美元的收購相關費用、280 萬美元的股票補償和 100 萬美元的重組和過渡費用。非 GAAP 運營費用為 7470 萬美元，比上一季度減少近 400 萬美元。我們繼續執行投資關鍵研發項目的戰略，主要是針對戰略客戶的 RF 技術和產品，同時控制可自由支配的支出並推動合併後公司的協同效應。

GAAP operating margin for the quarter was 8.2%. Non-GAAP operating margin was 14.1%, up from 12.8% last quarter despite the lower revenue. Other nonoperating expense was $3.5 million, down from $3.8 million last quarter; included in other expense was $2.3 million of total interest expense. Given our swap transaction, we expect interest expense savings of about $1 million per quarter compared to what we paid in Q1 and total other expense to be in the $1.5 to $2 million range going forward.

本季度的 GAAP 營業利潤率為 8.2%。儘管收入較低，但非美國通用會計準則營業利潤率為 14.1%，高於上一季度的 12.8%。其他非運營費用為 350 萬美元，低於上一季度的 380 萬美元；包括在其他費用中的是 230 萬美元的總利息費用。鑑於我們的掉期交易，我們預計與第一季度支付的利息費用相比，每季度可節省約 100 萬美元的利息費用，而未來的其他總費用將在 1.5 至 200 萬美元之間。

We recorded GAAP tax expense of $3.9 million or 17.5%. Our non-GAAP tax expense was $6 million or 14.6% and was benefited by the mix of international income. In addition, during Q1, we made significant progress in incorporating and optimizing the impact of Artesyn on our international tax provision, resulting in lower GILTI taxes across the combined company. These actions allow us to lower our expected GAAP and non-GAAP tax rate by approximately 100 basis points to be between 15% to 17% going forward.

我們記錄的 GAAP 稅費為 390 萬美元或 17.5%。我們的非 GAAP 稅收支出為 600 萬美元或 14.6%，並受益於國際收入的組合。此外，在第一季度，我們在整合和優化 Artesyn 對我們國際稅收規定的影響方面取得了重大進展，從而降低了合併後公司的 GILTI 稅。這些行動使我們能夠將預期的 GAAP 和非 GAAP 稅率降低約 100 個基點，使其在未來 15% 至 17% 之間。

On a GAAP basis, earnings per diluted share from continuing operations were $0.48 compared to earnings of $0.27 last quarter and $0.40 last year. Non-GAAP earnings per share for the quarter was $0.91, up 5% from $0.87 last quarter on lower revenue and up 57% from $0.58 a year ago.

根據 GAAP，持續經營業務攤薄後每股收益為 0.48 美元，而上一季度和去年分別為 0.27 美元和 0.40 美元。本季度非 GAAP 每股收益為 0.91 美元，較上一季度的 0.87 美元增長 5%，較上一季度的 0.87 美元增長 5%，較一年前的 0.58 美元增長 57%。

As I mentioned, the Artesyn acquisition continued to contribute to our consolidated results. As of the end of Q1, we have taken actions that we believe will result in annualized synergies of over $15 million. In addition, despite sequentially lower revenues in some of Artesyn's verticals, the acquisition remains solidly accretive in Q1, adding about $0.18 per share to non-GAAP earnings, including the interest expense of financing. While the level of accretion will fluctuate from quarter to quarter due to different revenue and product mix, we believe we are on track to achieve our earnings accretion of over $0.80 per share ahead of our 18- to 24-month target.

正如我所提到的，對 Artesyn 的收購繼續為我們的綜合業績做出貢獻。截至第一季度末，我們採取的行動相信將產生超過 1500 萬美元的年化協同效應。此外，儘管 Artesyn 的一些垂直業務的收入連續下降，但此次收購在第一季度仍然穩步增長，使非 GAAP 每股收益增加約 0.18 美元，包括融資的利息支出。由於不同的收入和產品組合，每個季度的增長水平會有所波動，但我們相信我們有望在 18 至 24 個月的目標之前實現超過 0.80 美元的每股收益增長。

Turning now to the balance sheet. We ended the quarter with cash and marketable securities of $355 million, up $6 million from Q4. Receivables decreased significantly, and DSO improved 5 days to 61 days. Inventory increased by $5 million and turns were 3.5x. Payables were $167 million, representing 74 days DPO. Total days of net working capital were 91, up 2 days from last quarter.

現在轉向資產負債表。本季度末，我們的現金和有價證券為 3.55 億美元，比第四季度增加 600 萬美元。應收賬款大幅減少，DSO 縮短 5 天至 61 天。庫存增加了 500 萬美元，周轉率為 3.5 倍。應付賬款為 1.67 億美元，相當於 74 天的 DPO。淨營運資金總天數為 91 天，比上一季度增加 2 天。

Operating cash flow from continuing operations was $28.9 million. Capital expenditures for the quarter were $6.1 million and depreciation was $6.6 million. We ended the quarter with bank debt of $335 million after a $4.4 million principal amortization payment on the loan.

來自持續經營業務的經營現金流為 2890 萬美元。本季度的資本支出為 610 萬美元，折舊為 660 萬美元。在支付了 440 萬美元的貸款本金攤銷後，本季度結束時我們的銀行債務為 3.35 億美元。

Note that our debt still has 4.5 years remaining term and is very low cost, with an effective fixed interest rate of 1.27% on 85% of the debt, as I discussed earlier. In addition, our debt covenants are based on net debt leverage, not gross debt, which gives us an extremely wide operating envelope.

請注意，我們的債務還有 4.5 年的剩餘期限，而且成本非常低，正如我之前討論的那樣，85% 的債務的有效固定利率為 1.27%。此外，我們的債務契約是基於淨債務槓桿，而不是總債務，這給了我們一個非常廣泛的經營範圍。

During Q1, we also spent $7.2 million to repurchase 170,000 shares of our stock at an average price of $42.59 per share. Overall, we exited the quarter in a very strong financial position, which should allow us to weather the current crisis and continue to make the critical investments needed to execute our strategy. As we have demonstrated, our robust financial model and playbook should allow us to continue to generate solid non-GAAP operating margins and cash flow.

在第一季度，我們還花費 720 萬美元以每股 42.59 美元的平均價格回購了 170,000 股股票。總體而言，我們以非常強勁的財務狀況退出了本季度，這應該使我們能夠度過當前的危機並繼續進行執行我們戰略所需的關鍵投資。正如我們所證明的那樣，我們穩健的財務模型和劇本應該能讓我們繼續產生穩固的非 GAAP 營業利潤率和現金流。

Now let me turn to guidance. In the near term, we continue to see strengthening demand in our semiconductor and data center markets, partially offset by weakness in Industrial & Telecom markets broadly. However, we expect revenue to continue to be impacted by COVID-related, government-imposed capacity constraints, particularly in our Philippine and Malaysia factories, and by ongoing supply chain challenges. As a result, we estimate revenues in Q2 to be about flat at $315 million, plus or minus $30 million, depending primarily on the level of government restrictions and the impact of supply chain constraints. We expect gross margins to be in the 35% to 37% range based on mix and increased COVID-related costs, production disruptions and higher freight and expediting expenses. Operating expenses are expected to be up slightly on increased R&D spending to accelerate strategic programs together with key customers.

現在讓我轉向指導。短期內，我們繼續看到半導體和數據中心市場的需求增強，部分被廣泛的工業和電信市場疲軟所抵消。但是，我們預計收入將繼續受到與 COVID 相關的政府施加的產能限制的影響，特別是在我們的菲律賓和馬來西亞工廠，以及持續的供應鏈挑戰。因此，我們估計第二季度的收入大致持平，為 3.15 億美元，上下浮動 3000 萬美元，這主要取決於政府限制的程度和供應鏈限制的影響。我們預計毛利率將在 35% 至 37% 的範圍內，基於混合和增加的 COVID 相關成本、生產中斷以及更高的運費和加急費用。由於研發支出增加以與主要客戶一起加速戰略計劃，預計運營費用將略有上升。

As a result, we expect non-GAAP earnings at $0.80 per share, plus or minus $0.30. In summary, despite a challenging environment, we delivered strong operating and financial results in Q1. We have excellent liquidity and a robust operating model. The integration of Artesyn is on track to achieve or exceed our synergy goals ahead of schedule, and we are executing on our strategy of accelerating earnings growth. Since closing the Artesyn acquisition, our non-GAAP EPS in each of the last 2 quarters was up double digits year-over-year, and this trend is projected to continue in the current quarter.

因此，我們預計非 GAAP 每股收益為 0.80 美元，上下浮動 0.30 美元。總而言之，儘管環境充滿挑戰，但我們在第一季度取得了強勁的運營和財務業績。我們擁有出色的流動性和穩健的運營模式。雅特生科技的整合有望提前實現或超越我們的協同目標，我們正在執行加速盈利增長的戰略。自完成對 Artesyn 的收購以來，我們在過去兩個季度的每個季度的非 GAAP 每股收益均同比增長兩位數，預計這一趨勢將在本季度繼續。

Looking forward, the current environment with COVID-19 continues to create operating challenges, and the visibility over the next few quarters is very limited. However, near-term demand continues to be strong, and we believe we are targeted at markets and industries that support the data economy and will benefit from these opportunities in the long run. Despite the near-term challenges, we are confident that we have the resources, competencies and capability to achieve our aspirational goals, accelerate earnings growth over time and deliver top-tier return on invested capital.

展望未來，當前 COVID-19 的環境繼續帶來運營挑戰，未來幾個季度的能見度非常有限。然而，近期需求持續強勁，我們相信我們的目標是支持數據經濟的市場和行業，並將長期受益於這些機會。儘管近期面臨挑戰，但我們相信我們擁有資源、能力和能力來實現我們的理想目標，隨著時間的推移加速盈利增長，並提供一流的投資資本回報。

Now we will take your questions. Operator?

現在我們將回答您的問題。操作員？

(Operator Instructions) Our first question comes from the line of Quinn Bolton from Needham & Company.

（操作員說明）我們的第一個問題來自 Needham & Company 的 Quinn Bolton。

Congratulations on the nice results, especially on the gross margin side. I wanted to start with the government-imposed capacity constraints you mentioned in the Philippines and Malaysia. Are those factories now back operational? And if so, what sort of utilization are you getting out of those facilities? And then I've got a couple of follow-up questions.

祝賀取得了不錯的成績，尤其是在毛利率方面。我想從你在菲律賓和馬來西亞提到的政府強加的容量限制開始。這些工廠現在恢復運營了嗎？如果是這樣，您從這些設施中得到了什麼樣的利用？然後我有幾個後續問題。

Quinn, the factories in the Philippines and Malaysia are ramping, they're not yet at full capacity. We are following government-imposed restriction related to the number of employees per factory. But we're ramping. We're not at full capacity, unlike our China factories that are at full capacity and doing great. We -- in terms of headcount and direct laborers, we don't have a limitation, it's mainly following directives by local government.

Quinn，菲律賓和馬來西亞的工廠正在加緊生產，但尚未滿負荷運轉。我們遵守政府對每個工廠的員工人數施加的限制。但我們正在加速。我們沒有滿負荷生產，不像我們的中國工廠已經滿負荷生產並且做得很好。我們 - 在員工人數和直接勞動力方面，我們沒有限制，主要是遵循當地政府的指示。

And Yuval, do you think that you can get back towards sort of full capacity by the end of the quarter? Or are the government...

Yuval，你認為你能在本季度末恢復到滿負荷運轉嗎？還是政府...

Quinn, we don't know. As you know, it is dynamic. We are working very closely with the governments, both local and general or federal governments to make sure that we have the compliance that is required by the health authorities. But at the same time, we get all the support that we need from the local governments to allow us to maximize our ability to operate. We can't predict what's going to happen. Things are dynamic. We see some places around the world that contagion is coming back, like Singapore, even though we don't have a factory there. We have limited visibility, but we are ramping in both sites; we're not at full capacity yet.

奎因，我們不知道。如您所知，它是動態的。我們正在與地方政府、一般政府或聯邦政府密切合作，以確保我們符合衛生當局的要求。但與此同時，我們從地方政府獲得了所需的所有支持，使我們能夠最大限度地發揮我們的經營能力。我們無法預測會發生什麼。事物是動態的。我們看到世界上一些地方的傳染病正在捲土重來，比如新加坡，儘管我們在那裡沒有工廠。我們的知名度有限，但我們在兩個站點都在增加；我們還沒有滿負荷運轉。

Understood. And then for Paul on the gross margin, at the midpoint, looks like margins will be down about 180 basis points in the June quarter. It sounds like some of that's mix, some of that's higher COVID-related costs. Wondering if you might be able to give us some sense how that 180 basis point splits between the various factors in the second quarter.

明白了。然後對於保羅的毛利率，在中點，看起來 6 月季度的利潤率將下降約 180 個基點。聽起來其中有些是混合的，有些是與 COVID 相關的更高成本。想知道您是否可以告訴我們第二季度的 180 個基點如何在各種因素之間分配。

Yes. It's a good question, Quinn. Certainly, as you mentioned, COVID-related costs is part of it. And we did see some benefit in the first quarter from local support basically that offset most of our COVID costs. Those costs are both increasing a little bit in Q2 plus we don't anticipate the benefit. So that's a fair portion of that decrease. But there's a couple of other items. One is we had generally favorable other cost-of-sale items in the first quarter. You just don't expect the trees to always fall the same direction every quarter. So we expect to see some pullback there. Mix will have a small factor. And those are the primary items.

是的。這是個好問題，奎因。當然，正如您提到的，與 COVID 相關的成本是其中的一部分。我們確實在第一季度從本地支持中看到了一些好處，基本上抵消了我們的大部分 COVID 成本。這些成本在第二季度都略有增加，而且我們預計不會帶來好處。所以這是減少的相當一部分。但是還有其他一些項目。一是我們在第一季度的其他銷售成本項目普遍有利。你只是不希望樹木每個季度總是朝同一個方向倒下。因此，我們預計那裡會出現一些回調。混合會有一個小因素。這些是主要項目。

Understood. And then lastly for Yuval. Data center has been, I think, much stronger than expected or at least very strong for the past couple of quarters, looks like it will be strong again in June or maintain its fairly high level of output. Are you worried at all about capacity digestion in the data center business as you look into the second half? Or is it just sort of tough to tell at this point what that data center business looks like into the second half?

明白了。最後是尤瓦爾。我認為，數據中心在過去幾個季度比預期強得多，或者至少非常強，看起來它會在 6 月份再次強勢或保持相當高的產出水平。展望下半年，您是否擔心數據中心業務的產能消化？或者在這一點上很難說下半年數據中心業務的情況？

So good question, Quinn. I think we're benefiting from 2 driving forces. The first one, which started contributing in the previous quarter, we are realizing recent design wins in hyperscale that we worked on for the last 12 to 18 months. And these design wins translated to revenue. Hyperscale right now is the fastest-growing part of the business. And not only we realized the design wins and continue to have new design wins, we saw a surge in demand, especially in hyperscale, as the working from home, relying on the Internet, the increasing usage of data right now drives acceleration of investments in data centers. And we expect to see that continuing.

問得好，奎因。我認為我們受益於兩個驅動力。第一個在上一季度開始做出貢獻，我們正在實現我們在過去 12 到 18 個月內致力於的超大規模設計最近的勝利。這些設計勝利轉化為收入。超大規模現在是業務中增長最快的部分。不僅我們意識到設計獲勝並繼續贏得新的設計勝利，我們還看到需求激增，尤其是在超大規模領域，因為在家工作，依賴互聯網，數據使用的增加現在推動了對投資的加速數據中心。我們希望看到這種情況繼續下去。

Our next question comes from the line of Amanda Scarnati from Citi.

我們的下一個問題來自花旗銀行的 Amanda Scarnati。

Just kind of picking up off of that data center and hyperscale question. I just want to clarify what you mean by acceleration. Do you think that that's a pull-in of demand, or do you think that this is sort of additional demand that's just happening on sort of an accelerated pace?

只是從數據中心和超大規模問題中解脫出來。我只想澄清你所說的加速是什麼意思。您認為這是需求的拉動，還是您認為這是一種正在加速發生的額外需求？

We don't believe it's pull-ins. We believe it's added capacity, some of the very large hyperscalers are seeing tremendous increase in traffic and usage of Internet applications. And we see increase in demand that, as I said earlier, will continue, Amanda. It's a significant add-on demand that, from our perspective, we're adding more capacity to fulfill the demand.

我們不相信這是拉入。我們相信這是增加的容量，一些非常大的超大規模企業正在看到互聯網應用程序的流量和使用量大幅增加。正如我之前所說，我們看到需求將繼續增加，阿曼達。這是一個重要的附加需求，從我們的角度來看，我們正在增加更多的能力來滿足需求。

Okay. And then on the Industrial & Medical side of the business. You highlighted med-tech designs that you had that are supporting the COVID crisis. But the segment overall was down 36%, but you mentioned for a large industrial contract. How much of a benefit did you get in the quarter from that med-tech division? And do you see that demand kind of continuing on and helping to bolster growth in the second quarter?

好的。然後在業務的工業和醫療方面。您強調了支持 COVID 危機的醫療技術設計。但該部門整體下降了 36%，但你提到了一項大型工業合同。您在本季度從該醫療技術部門獲得了多少收益？您是否認為這種需求會持續並有助於促進第二季度的增長？

So it's a great question, Amanda. Our medical and life science business is still small, but growing. It's above $50 million and growing. We saw what I'd call a surge in demand, specifically in power supplies that go into ventilators, and as you know, there is a huge demand for building ventilators. The question we have, we don't believe this is going to be multiyear demand. We believe that the market right now built a large inventory of ventilators that created a surge of demand from us. Another area that is increasing is the area of analytical and life science tools, more specifically gene sequencing and related technologies that are right now in high demand as more testing, more gene sequencing and what we assume could be vaccine development activities that require additional analytical tools. The area in medical that we think is going to be affected in the short term is everything that has to do with elective procedures and even cosmetic procedures, that we believe the growth there is going to be pushed out a little bit. In general, medical and life science is an area of focus for us. It has some of the business attributes we like to operate in. It's still small, but growing, and we expect it to continue to grow.

所以這是一個很好的問題，阿曼達。我們的醫療和生命科學業務仍然很小，但正在增長。它超過 5000 萬美元並且還在增長。我們看到了我所說的需求激增，特別是在呼吸機的電源方面，正如你所知，對製造呼吸機的需求巨大。我們的問題是，我們認為這不會是多年需求。我們認為，目前市場上積累了大量呼吸機庫存，導致我們的需求激增。另一個正在增長的領域是分析和生命科學工具領域，更具體地說，基因測序和相關技術現在需求量很大，因為更多的測試、更多的基因測序以及我們認為可能是需要額外分析工具的疫苗開發活動.我們認為短期內會受到影響的醫療領域是與擇期手術甚至整容手術有關的一切，我們認為那裡的增長將會被推遲一點。總的來說，醫學和生命科學是我們關注的領域。它具有我們喜歡運營的一些業務屬性。它仍然很小，但正在增長，我們預計它會繼續增長。

Great. And then the last question I had is you mentioned some -- that you received some benefits from government and local authorities. Can you just clarify what those benefits were, and why you don't expect them to continue in the current environment?

偉大的。然後我的最後一個問題是你提到了一些 - 你從政府和地方當局那裡獲得了一些好處。您能否澄清一下這些好處是什麼，以及為什麼您不希望它們在當前環境中繼續存在？

Yes. A lot of them, I'll say, were from China, which was hit sort of early with the impact of the virus. And they took a variety of forms. In some cases, we saw some rent abatement, we saw some holding of some of the social cost contributions and things like that. They're time based, and so those programs have basically worked through. So that's why we don't anticipate seeing other benefits. If you look at some of the things that have been passed in the U.S., which should be coming onstream now, they largely don't benefit either large companies or large companies that aren't having massive layoffs or furloughs. So that doesn't fit us. And so we don't see any real benefit other than the timing of some tax payments, which are being deferred, as you know. So that's why we see it as temporary. Obviously, we feel fortunate that we've been able to get some relief. But the impact of this, across our worldwide operations, continues to roll through.

是的。我要說的是，他們中的很多人來自中國，中國很早就受到了病毒的影響。他們採取了多種形式。在某些情況下，我們看到了一些租金減免，我們看到了一些社會成本貢獻等。它們是基於時間的，因此這些程序基本上已經完成。所以這就是為什麼我們不期望看到其他好處。如果你看一下美國已經通過的一些事情，這些事情現在應該會上線，它們在很大程度上不會讓大公司或沒有大規模裁員或休假的大公司受益。所以這不適合我們。因此，如您所知，除了延遲某些稅款支付的時間之外，我們看不到任何真正的好處。所以這就是為什麼我們認為它是暫時的。顯然，我們很幸運能夠得到一些緩解。但這對我們全球業務的影響仍在繼續。

Our next question comes from the line of Krish Sankar from Cowen & Company.

我們的下一個問題來自 Cowen & Company 的 Krish Sankar。

I have 2 of them. Yuval, we've kind of heard the same commentary from many folks regarding supply chain constraints. Is this a function of just the geographic exposure, i.e., Malaysia and Philippines have been -- have the movement control orders? Or is there 1 or 2 key components that in the whole food chain that is actually the weakest link that is actually impacting everyone's output?

我有 2 個。Yuval，我們從許多人那裡聽到了關於供應鏈限制的相同評論。這是否只是地理風險的函數，即馬來西亞和菲律賓已經 - 有移動控制命令嗎？或者在整個食物鏈中是否有 1 或 2 個關鍵組成部分實際上是影響每個人產出的最薄弱環節？

So Krish, it's very dynamic. At the beginning of the -- right after Chinese New Year, when everybody started slowly to go back to work, you could see that suppliers that are close to the epicenter, like in Wuhan, Hubei area, were practically shutdown. And it took them a long time to recover and go back to business. Our supply chain is broad and global. So there's no specific world region that, with the exception of Wuhan and Hubei, that we needed to address. Our combined teams, of the Artesyn supply chain team and the AE supply chain teams that are now being combining together, did a phenomenal job managing a very complex and broad supply chain network. And the addition of these 2 supply chains also help us to use each other's products because we had some redundancies, which allow us to be very flexible and nimble. The reason we managed to very quickly go back to business and deliver and exceed our commitment in terms of shipment to customers was the strength of the combined operation and the combined supply chain management teams. So there's no specific area or specific part. It's, I'll call it, managing day-by-day a network of suppliers that we needed to help and deliver.

所以 Krish，它非常有活力。在春節剛過的時候，當大家開始慢慢復工時，你可以看到靠近震中的供應商，比如湖北武漢地區，幾乎都停產了。他們花了很長時間才恢復過來並重新開始營業。我們的供應鏈廣泛且全球化。因此，除了武漢和湖北，我們沒有需要解決的特定世界區域。我們的聯合團隊，包括 Artesyn 供應鏈團隊和 AE 供應鏈團隊，現在正在合併在一起，在管理一個非常複雜和廣泛的供應鍊網絡方面做得非常出色。而且這兩條供應鏈的加入也有助於我們使用彼此的產品，因為我們有一些冗餘，這讓我們非常靈活和敏捷。我們能夠迅速恢復業務並交付並超越我們對客戶的承諾的原因是聯合運營和聯合供應鏈管理團隊的實力。所以沒有特定區域或特定部分。它，我稱之為，每天管理我們需要幫助和交付的供應商網絡。

All right. That's good insight, Yuval. And then a follow-up for Paul. I missed it. I don't know if you did give any color on how to think about semi equipment revenues in the June quarter, either sequentially or in terms of dollar numbers.

好的。這是很好的洞察力，尤瓦爾。然後是保羅的後續行動。我錯過了。我不知道您是否確實給出瞭如何考慮 6 月季度半設備收入的任何顏色，無論是順序還是美元數字。

Yes. We didn't say on the revenue side, it's difficult to predict across the business because of the supply chain issues that Yuval said. But what we did say is we expect demand to continue to strengthen and would see a healthy environment. It's just all based on our ability to deliver across the 4 markets that we're in today.

是的。我們沒有在收入方面說，由於 Yuval 所說的供應鏈問題，很難預測整個業務。但我們確實說過，我們預計需求將繼續增強，並會看到一個健康的環境。這完全取決於我們今天所處的 4 個市場的交付能力。

Krish, as I said in my remarks, the demand in semi is very strong. It's not a question of demand. It's a question of our capacity to deliver on that demand. And the demand is very strong.

克里什，正如我在發言中所說，對半成品的需求非常強勁。這不是需求的問題。這是我們滿足該需求的能力的問題。而且需求非常旺盛。

And the supply chain, that's important.

還有供應鏈，這很重要。

And it's supply chain. Right.

這是供應鏈。正確的。

Got it. And then, Yuval, if I could just ask one last question, just to follow up on that point. I understand that visibility is limited. No one knows how the second half is going to shake out. But is there any risk that, given it's supply constrained and the demand is still pretty strong, any risk that your customers, the semi equipment OEMs, end up having excess inventory, if the downstream demand slows down in the second half? Because right now, it's a supply-constrained environment, but that could be an opposite thing when -- if demand falls off a cliff, right?

知道了。然後，Yuval，如果我可以問最後一個問題，只是為了跟進這一點。我知道能見度有限。沒有人知道下半場將如何擺脫困境。但是，鑑於供應受限且需求仍然相當強勁，如果下半年下游需求放緩，您的客戶（半設備原始設備製造商）是否存在庫存過剩的風險？因為現在，這是一個供應受限的環境，但當需求跌落懸崖時，情況可能恰恰相反，對吧？

We don't forecast the second half. All I can tell you is that the demand is strong and continued through Q2. We have an extremely nimble and agile operation. For our perspective, we can respond very quickly to changes in volume and mix. We've done that for years. We know how to do it. We know how to do it effectively. So from our perspective, we continue to look at strong demand going through Q2, and our plan is to deliver. And if you look at our guidance, our guidance in general is very strong in comparison to peers and others.

我們不預測下半年。我只能告訴你的是，需求強勁並持續到第二季度。我們有一個非常靈活和敏捷的操作。從我們的角度來看，我們可以非常快速地響應音量和組合的變化。我們已經這樣做了很多年。我們知道該怎麼做。我們知道如何有效地做到這一點。因此，從我們的角度來看，我們繼續關注第二季度的強勁需求，我們的計劃是交付。如果你看看我們的指導，我們的指導總體上與同行和其他人相比非常強大。

Our next question comes from the line of Weston Twigg from KeyBanc Capital.

我們的下一個問題來自 KeyBanc Capital 的 Weston Twigg。

Actually, I wanted to follow up on that last question because I got a little confused on the segment outlook between semi and industrial and data center and telecom, because I certainly heard demand strength was good for semi and data center, but I didn't catch which segments do you think from a revenue buildup perspective, in terms of how you get the guidance, might be up or down. And so I'm just wondering if you could walk us through, like, for example, in Industrial & Medical, I thought I heard demand would increase, but maybe offset by some supply challenges. I don't know if that means you think it's going to be up or down or maybe you don't know, but additional just directional color would help.

實際上，我想跟進最後一個問題，因為我對半導體和工業以及數據中心和電信之間的細分前景有點困惑，因為我當然聽說半導體和數據中心的需求強度很好，但我沒有從收入積累的角度來看，就您獲得指導的方式而言，您認為哪些細分市場可能會上升或下降。所以我只是想知道你是否可以帶我們通過，例如，在工業和醫療領域，我以為我聽說需求會增加，但可能會被一些供應挑戰所抵消。我不知道這是否意味著您認為它會上升或下降，或者您可能不知道，但是額外的定向顏色會有所幫助。

Wes, so if you look at -- so first of all, we don't have segments, right? We have market verticals that we serve with our power supplies. We see growth in semi, as I mentioned in the last answer. We see strength coming from data center, hyperscale. And with that, mainly hyperscale is growing faster than just the general data centers. We see right now, growth in medical and life sciences that is related to COVID-19. And the other aspect of industrial, if you look in general industrial, we see weakness due to largely macroeconomical forces. So if you look at solar and flat panel display, we see those not showing any strength. The area that we mentioned specifically within our industrial market was a unique case of a single large customer that decided to adopt new architecture as they prepare for continuing ramp and they pushed out revenue from Q1 to future quarters. So we don't see that as a revenue that disappeared, we see that as a pushout, right? The other area that is a decline, but not a surprise, was Telecom & Networking. And especially as we said in the last earnings call, we expect that the telecom downturn to last about 2 quarters. Does that answer your question, Wes?

Wes，所以如果你看 - 首先，我們沒有細分，對嗎？我們有我們的電源服務的垂直市場。正如我在上一個答案中提到的那樣，我們看到了 semi 的增長。我們看到來自數據中心、超大規模的力量。因此，主要是超大規模數據中心的增長速度快於一般數據中心。我們現在看到與 COVID-19 相關的醫學和生命科學領域的增長。而工業的另一方面，如果你看一下一般工業，我們會發現主要是宏觀經濟力量導致的疲軟。因此，如果您查看太陽能和平板顯示器，我們會發現它們沒有顯示出任何優勢。我們在工業市場中特別提到的領域是一個獨特的案例，一個大客戶決定採用新架構，因為他們準備持續增長，並將收入從第一季度推遲到未來幾個季度。所以我們不認為這是消失的收入，我們認為這是一種推出，對吧？另一個下降但並不意外的領域是電信和網絡。特別是正如我們在上次財報電話會議上所說的那樣，我們預計電信行業的低迷將持續約 2 個季度。這是否回答了你的問題，韋斯？

Yes. That's helpful. Just kind of putting it all together.

是的。這很有幫助。只是把它們放在一起。

Wes, the main thing is we have a pretty good visibility of demand. But we didn't give specific revenue guidance by each of those markets because a lot of it comes down to customer issues at the end, who's ready to take products, who isn't, which specific supply issues we're chasing at -- towards the end. But I think broadly speaking, the areas where demand is weaker, as we talked about, we'll probably get a little less shipments. In areas where demand is a little stronger, we'll probably get a little more. But there's not going to be big swings compared to the current quarter in sort of our flat guidance. And all this stuff to move around a few million dollars right up to the end, and that's why it's difficult to kind of project. There's no one area that's up a lot and others are down a lot. It's...

Wes，最主要的是我們對需求有很好的了解。但我們沒有給出每個市場的具體收入指導，因為很多最終都歸結為客戶問題，誰準備好接受產品，誰還沒有，我們正在追逐哪些具體的供應問題——接近尾聲。但我認為，從廣義上講，正如我們所說，在需求較弱的地區，我們的出貨量可能會減少一些。在需求稍強的地區，我們可能會得到更多。但與本季度相比，我們的持平指導不會出現大幅波動。所有這些東西直到最後都要花費幾百萬美元，這就是為什麼很難進行項目的原因。沒有一個地區漲幅很大，而其他地區跌幅很大。它是...

And also the environment of the -- in general, the environment due to COVID-19 creates another uncertainty related to our ability to build and ship.

還有環境——總的來說，由於 COVID-19 造成的環境造成了與我們建造和運輸能力相關的另一個不確定性。

Okay. That's very helpful color, so I appreciate it. One other question that I'm just struggling with a little bit still is, I heard some reasons why you had good margin profile and good earnings. But what I didn't hear was why it was so far above your guidance midpoint. I'm wondering if you could help us understand what really surprised to the upside so strongly in Q1 to drive the EPS so high.

好的。這是非常有用的顏色，所以我很感激。另一個我還在苦苦掙扎的問題是，我聽說了一些為什麼你有良好的利潤率和良好收益的原因。但我沒有聽到的是為什麼它遠遠高於你的指導中點。我想知道您是否可以幫助我們理解是什麼讓第一季度的 EPS 如此強勁地上漲，從而推動每股收益如此之高。

Yes. It's a really good question. And I would say there's a couple big things. One is we expected -- I think if you recall, we talked about in our call, we thought we'd have 50 to 100 basis points of COVID cost. In the end, those were pretty much neutral, that's a straight upside to our forecast. We also had a number of items, like I said, other cost-of-sale items, none of which was material, but all of which were a little bit favorable. That contributed. And then finally, we had good mix. In general, semi was pretty good for us. And so that on balance was a contributor. And within the product areas, there's other mix positives as well. But there's one other thing that we saw. And that's why if you look at the midpoint of our guidance, it's actually higher in Q2 than the guidance in Q1 and that's because we are starting to see the benefit of some of the integration synergies. I talked about lower material costs and actually running the factories despite all the disruptions a little better than maybe we thought we could, and that's because of some of the integration activities and the ability to leverage a more global organization than we had previously.

是的。這是一個非常好的問題。我會說有幾件大事。一個是我們的預期——我想如果你還記得的話，我們在電話中談到過，我們認為我們會有 50 到 100 個基點的 COVID 成本。最後，這些幾乎是中性的，這比我們的預測直接向上。我們也有一些項目，就像我說的，其他銷售成本項目，沒有一個是重要的，但所有這些都有點有利。那有貢獻。最後，我們有很好的組合。總的來說，半決賽對我們來說非常好。因此，總的來說，這是一個貢獻者。在產品領域內，還有其他混合積極因素。但是我們還看到了另一件事。這就是為什麼如果你看一下我們指導的中點，它實際上在第二季度高於第一季度的指導，這是因為我們開始看到一些整合協同效應的好處。我談到了更低的材料成本和實際運行的工廠，儘管所有的中斷都比我們想像的要好一些，這是因為一些整合活動和利用比我們以前更全球化的組織的能力。

So Wes, the integration of Artesyn drives additional margins growth as we realize synergies faster than planned, and that will continue. As you recall, the thesis behind this acquisition was to pursue an accelerated earnings growth, and we're pursuing it. And you saw that our earnings -- EPS growth was double digit. So that's the plan, and we're executing on the plan.

所以 Wes，Artesyn 的整合推動了額外的利潤增長，因為我們比計劃更快地實現了協同效應，而且這種情況將繼續下去。正如您所記得的，此次收購背後的主題是追求盈利的加速增長，而我們正在追求它。你看到我們的收益 - EPS 增長是兩位數。這就是計劃，我們正在執行計劃。

Our next question comes from the line of Pavel Molchanov from Raymond James.

我們的下一個問題來自 Raymond James 的 Pavel Molchanov。

You referenced the lockdown in Luzon, the Philippines as kind of your main manufacturing headwind. Have any of your customers had lockdown-related curtailments in labor or other operations that have prevented them from accepting deliveries of your product?

您提到菲律賓呂宋島的封鎖是您主要的製造逆風。您的客戶中是否有任何與鎖定相關的勞動力或其他運營縮減，導致他們無法接受您的產品交付？

Yes. We don't talk about our customers, Pavel. But I would say in general, our customers, as we talked about in the call, have been pulling demand. They've been kind of finding a way to get product in the markets that we talked about. Obviously, Telecom & Networking is slower. But across the others, outside of some specific issues, people have generally been pulling products. So no specific comments, but in general, customers have been pulling or pushing to get products and have been very -- working with us as we try to resolve supply chain channels and where to ship things and how to be flexible in this time. Look, this turned from a China event, this quarter, to a global event. And I think broadly, in these areas, supported by the data economy, people have been working together to try to get product where it needs to be as quickly as possible.

是的。我們不談論我們的客戶，Pavel。但我要說的是，總的來說，正如我們在電話中談到的那樣，我們的客戶一直在拉動需求。他們一直在尋找一種方法在我們談到的市場上獲得產品。顯然，電信和網絡速度較慢。但在其他方面，除了一些具體問題，人們通常都在拉動產品。所以沒有具體的評論，但總的來說，客戶一直在拉動或推動獲得產品，並且一直非常 - 與我們合作，因為我們試圖解決供應鏈渠道以及運送物品的地點以及此時如何靈活。看，這從本季度的中國事件變成了全球事件。我認為，從廣義上講，在這些領域，在數據經濟的支持下，人們一直在共同努力，試圖盡快將產品送到需要的地方。

Okay. Understood. And then you mentioned a little bit of buyback, $7 million in the quarter, obviously, not a huge amount. But you are one of the very, very few companies, I might say, on the planet that did not have buyback 6 months ago but is repurchasing some shares now. So I'm curious what kind of stimulated that decision.

好的。明白了。然後你提到了一點回購，本季度 700 萬美元，顯然不是一個大數目。但我可能會說，你是這個星球上為數不多的幾家 6 個月前沒有回購但現在正在回購一些股票的公司之一。所以我很好奇是什麼刺激了這個決定。

Yes. As we went into this thing, obviously, we were through the Artesyn acquisition. We felt like we had a little better bead on where things were going. And the share price was very attractive. So it triggered an opportunistic program. However, as the environment evolved, and it evolved pretty quickly, I mean, it seems like it's been a long time, the last 2 months, but the events happening every day were easily, it felt like weeks or months in the making. And so as we saw events start to unfold more rapidly, we thought it was prudent to hold back on the repurchase and to stop that. We have a solid balance sheet, as you know, Pavel, but the world's changing or at least at the time was changing rapidly, and our view is let's pull back on that opportunistic program and see where things go.

是的。當我們進入這件事時，很明顯，我們經歷了對 Artesyn 的收購。我們覺得我們對事情的進展有了更好的了解。而且股價非常有吸引力。因此它觸發了一個機會主義程序。然而，隨著環境的演變，而且演變得非常快，我的意思是，這似乎已經過去了很長時間，最近 2 個月，但每天發生的事件都很容易，感覺就像在醞釀幾週或幾個月。因此，當我們看到事件開始更加迅速地展開時，我們認為阻止回購併停止回購是謹慎的做法。帕維爾，正如你所知，我們擁有穩健的資產負債表，但世界正在發生變化，或者至少當時正在迅速變化，我們的觀點是讓我們撤回那個機會主義計劃，看看事情會發生什麼。

Our next question comes from the line of Mehdi Hosseini from SIG.

我們的下一個問題來自 SIG 的 Mehdi Hosseini。

I apologize, I joined late, so some of my questions may be repeat. Of the $0.80 accretion that is being pulled in, it seems like $0.05 to $0.08 is due to lower taxes. So of the remaining $0.70, $0.75 accretion that is pulled in, how should I think about the cost synergies associated with Artesyn and also the revenue synergies? I remember it was announced accretion was going to come from both top line and also a big chunk of the cost synergies. And I want to better understand how those dynamics are playing? And then I have a follow-up.

抱歉，我加入晚了，所以我的一些問題可能會重複。在增加的 0.80 美元中，似乎有 0.05 美元到 0.08 美元是由於較低的稅收。那麼在剩餘的 0.70 美元、0.75 美元的增值中，我應該如何考慮與 Artesyn 相關的成本協同效應以及收入協同效應？我記得有人宣布增長將來自頂線和很大一部分成本協同效應。我想更好地了解這些動態是如何發揮作用的？然後我有一個後續行動。

Yes. Let me see if I can answer your question, Mehdi. So we said that we expected $0.80 of accretion in that first 18 to 24 months. You're right, we have gotten some tax benefit. And out of the $0.80, you're probably right, maybe a $0.05 is from taxes. So that's obviously positive and contributes. Obviously Artesyn itself is, just on its own basis, is profitable. It's positive contribution. Last quarter, we said it was over $0.20 of accretion. This quarter, we said it was $0.18 accretion. That includes the financing cost by the way, so it's a net accretion, if you will. And if you look at that, we also talked about that we have identified and implemented annualized synergies of about $15 million. So again, we had a $20 million goal in the 18- to 24-month time frame, and we're well on our way to that. Now those are annualized synergies. So that's not $15 million a quarter right now. That's -- we're in -- we're ramping up to that run rate of $15 million a year. But the actions are taken, it's identified, those are going to happen. So I think you can kind of derive the math from those data points that says certainly Artesyn is contributing at a base level, there's clear improvements that we've made as a result of the synergies we've implemented, and we're on track to achieve those goals faster than expected. Now we did get some cross-selling. I would say that's sort of the beginning, it's not a large amount, but it's hundreds of units. And it's sort of scratching the surface of what we think is possible. We've said that that market for auxiliary power supplies is a...

是的。讓我看看我能否回答你的問題，Mehdi。所以我們說我們預計在前 18 到 24 個月內會增加 0.80 美元。你是對的，我們得到了一些稅收優惠。在 0.80 美元中，你可能是對的，也許 0.05 美元來自稅收。所以這顯然是積極的並且有貢獻。顯然，Artesyn 本身是有利可圖的。這是積極的貢獻。上個季度，我們說增長超過 0.20 美元。本季度，我們說增加了 0.18 美元。順便說一下，這包括融資成本，所以如果你願意的話，它是一個淨增長。如果你看一下，我們還談到我們已經確定並實施了約 1500 萬美元的年度協同效應。因此，我們在 18 到 24 個月的時間框架內再次設定了 2000 萬美元的目標，並且我們正在朝著這個目標邁進。現在這些是年度協同效應。所以現在每季度不是 1500 萬美元。那就是——我們在——我們正在提高到每年 1500 萬美元的運行率。但是已經採取了行動，確定了行動，這些行動將會發生。所以我認為你可以從這些數據點中推導出數學，這些數據點肯定表明雅特生科技在基礎層面做出了貢獻，由於我們實施的協同作用，我們已經取得了明顯的改進，而且我們正在走上正軌比預期更快地實現這些目標。現在我們確實得到了一些交叉銷售。我會說這是一個開始，數量不多，但有數百個單位。這有點觸及我們認為可能的表面。我們已經說過，輔助電源市場是……

$70 million.

7000 萬美元。

$70 million market, and this is the very first order, kind of almost a pilot order with...

7000 萬美元的市場，這是第一個訂單，有點像試點訂單……

So Mehdi, we...

所以邁赫迪，我們...

So there's more to come there, but it's very small at this point.

所以還有更多的東西要去那裡，但在這一點上它非常小。

So Mehdi, during the Analyst Day, we talked about a strategy to start working on cross-selling. And we've done it before. Every acquisition we made in the history, we succeeded in taking products from one vertical and cross-sell to another vertical. In this case, in specifically in auxiliary power supplies for semiconductor wafer fab equipment applications, we managed to move much faster than our plan due to a unique specific customer need that we managed to fulfill almost immediately. And that's the first building block of having this cross-selling contribution moving forward.

所以 Mehdi，在分析師日期間，我們討論了開始進行交叉銷售的策略。我們以前做過。我們在歷史上進行的每一次收購，都成功地將產品從一個垂直領域和交叉銷售到另一個垂直領域。在這種情況下，特別是在半導體晶圓廠設備應用的輔助電源方面，由於我們幾乎立即滿足了獨特的特定客戶需求，我們設法比我們的計劃快得多。這是推動這種交叉銷售貢獻的第一個基石。

Okay. Just had 2 quick follow-up. One, on the margin. Did you provide any color or detail for the June quarter gross and operating margins? And for you, Yuval, focusing on your semi cap, how do you see different end markets playing out? It seems like maybe first half is driven by foundry/logic and then some memory coming back later in the year. And I want to see if you agree or disagree, or you have any different thoughts.

好的。剛剛進行了 2 次快速跟進。一，邊緣。您是否提供了 6 月季度毛利率和營業利潤率的任何顏色或細節？對於你來說，Yuval，專注於你的半盤，你如何看待不同的終端市場？似乎上半年可能是由代工廠/邏輯驅動的，然後一些記憶在今年晚些時候回歸。我想看看你是否同意，或者你有什麼不同的想法。

Yes. I'll take the guidance question, and Yuval will talk about the market. So we said that we expect gross margins to be 35% to 37%. And we also noted that that's a little lower than this quarter because we do expect increased net COVID costs. Last quarter, we did see benefits that largely offset those costs. Those costs are both increasing and we don't see the benefits this quarter. As well as higher freight and expediting and other costs that just come with this environment where we're constantly trying to move things around to get product to customers.

是的。我將接受指導問題，Yuval 將談論市場。所以我們說我們預計毛利率在35%到37%之間。我們還注意到，這比本季度略低，因為我們確實預計淨 COVID 成本會增加。上個季度，我們確實看到了在很大程度上抵消了這些成本的收益。這些成本都在增加，我們在本季度看不到好處。以及更高的運費和加急費用以及伴隨這種環境而來的其他成本，在這種環境中，我們不斷地嘗試移動東西以將產品交付給客戶。

On the operating margins. We said we expected to see $0.80 per share, plus or minus $0.30. So we didn't break it down exactly to operating margins, but you can probably derive that pretty close.

關於營業利潤率。我們說過我們預計每股收益為 0.80 美元，上下浮動 0.30 美元。所以我們沒有將它準確地分解為營業利潤率，但你可能會得出非常接近的結果。

And maybe your assumption related to end-user market drivers is correct. That's basically the consensus. We saw front-end loaded a lot of foundry/logic with a little bit of investment in memory. As I mentioned in my prepared remarks, we saw really a lot of strength coming from Korea, China and Taiwan. And we -- and in general, the demand right now from the semi vertical is very strong, very strong. And we see that demand going through Q2. So I think I agree with your assumptions.

也許您與最終用戶市場驅動因素相關的假設是正確的。這基本上是共識。我們看到前端加載了大量代工/邏輯，並對內存進行了一些投資。正如我在準備好的發言中提到的，我們確實看到了來自韓國、中國和台灣的強大力量。而且我們 - 總的來說，現在來自半垂直的需求非常強勁，非常強勁。我們看到第二季度的需求。所以我想我同意你的假設。

At this time, I'm showing no further questions. I would like to turn the call back over to Yuval for closing remarks.

目前，我沒有進一步提問。我想將電話轉回 Yuval 以作結束語。

Well, thanks, everyone, for joining us today. We are living through interesting and challenging times. In spite of that, we delivered a really strong quarter in Q1 and expect to see the continuing of this strength through Q2. We're excited because we're making great progress to meet or exceed our aspirational strategic goals of greater than $1.5 billion in revenue, greater than $6.5 EPS, non-GAAP EPS, and more than 23% ROIC. Thanks for joining us, have a healthy and safe week.

好吧，謝謝大家今天加入我們。我們正在經歷有趣和充滿挑戰的時代。儘管如此，我們在第一季度實現了非常強勁的季度表現，並希望在第二季度繼續保持這種勢頭。我們很興奮，因為我們在實現或超過超過 15 億美元的收入、超過 6.5 美元的每股收益、超過 6.5 美元的每股收益、超過 23% 的 ROIC 的宏偉戰略目標方面取得了巨大進展。感謝您加入我們，祝您度過健康安全的一周。

Ladies and gentlemen, this concludes today's conference call. Thanks 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。