Advanced Energy Industries Inc (AEIS) 2017 Q1 法說會逐字稿

Good day, ladies and gentlemen. Welcome to the Advanced Energy First Quarter 2017 Earnings Conference Call. (Operator Instructions) As a reminder, today's conference call is being recorded.

女士們先生們，美好的一天。歡迎參加 Advanced Energy 2017 年第一季度收益電話會議。（操作員說明）提醒一下，今天的電話會議正在錄製中。

I would now like to introduce your first speaker for today, Annie Leschin. You have the floor.

我現在想介紹您今天的第一位發言人 Annie Leschin。請發言。

Thank you, operator, and good morning, everyone. Welcome to Advanced Energy's First Quarter 2017 Earnings Conference Call. With me on today's call are Yuval Wasserman, President and CEO; and Tom Liguori, Executive Vice President and CFO. By now, you should have received a copy of the earnings release that was issued yesterday afternoon. For a copy of this release, please visit our website at www.advancedenergy.com.

謝謝接線員，大家早上好。歡迎來到 Advanced Energy 2017 年第一季度收益電話會議。與我一起參加今天電話會議的有總裁兼首席執行官 Yuval Wasserman；執行副總裁兼首席財務官 Tom Liguori。到目前為止，您應該已經收到一份昨天下午發布的收益報告。如需本新聞稿的副本，請訪問我們的網站 www.advancedenergy.com。

Before we begin, I would like to mention that AE will be participating in a few conferences this quarter, the JPMorgan Global Technology Conference on May 24 in Boston, the Stifel Technology Conference on June 5 in San Francisco and the Citi Small & Mid Cap Conference on June 8 in New York. As other events occur, we'll make additional announcements.

在我們開始之前，我想提一下，AE 將參加本季度的幾個會議，5 月 24 日在波士頓舉行的摩根大通全球技術會議，6 月 5 日在舊金山舉行的 Stifel 技術會議以及花旗中小型股會議6 月 8 日在紐約。當其他事件發生時，我們將發布額外的公告。

I'd like to remind everyone that except for historical financial information contained herein, matters discussed on this call contain certain forward-looking statements subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Statements that include the terms believe, expect, plan, objective, estimate, anticipate, intent, target, goal or the like should be viewed as forward-looking and uncertain. Such risks and uncertainties include, but are not limited to, the volatility and cyclicality of the markets we serve, the timing of orders received from our customers and unanticipated changes on our estimates, reserves or allowances as well as other factors listed in our press release. These and other risks are described in Forms 10-Q, 10-K and other forms filed with the SEC.

我想提醒大家，除了此處包含的歷史財務信息外，本次電話會議討論的事項包含某些前瞻性陳述，這些陳述受已知和未知風險和不確定性的影響，這些風險和不確定性可能導致實際結果與此類明示或暗示的結果存在重大差異聲明。包含相信、預期、計劃、目標、估計、預期、意圖、目標、目標等術語的陳述應被視為前瞻性和不確定性。此類風險和不確定性包括但不限於我們所服務市場的波動性和周期性、我們收到客戶訂單的時間、我們的估計、儲備或配額的意外變化以及我們新聞稿中列出的其他因素.這些風險和其他風險在提交給美國證券交易委員會的 10-Q 表格、10-K 表格和其他表格中進行了描述。

In addition, we assume no obligation to update the information that we've provided you during this call, including our guidance provided in yesterday's press release. Guidance will not be updated after today's call until our next scheduled quarterly financial release.

此外，我們沒有義務更新我們在本次電話會議中向您提供的信息，包括我們在昨天的新聞稿中提供的指導。在我們下一次預定的季度財務發布之前，今天的電話會議之後不會更新指南。

And just as a reminder, in today's call, we will refer both to GAAP and non-GAAP results. Non-GAAP measures exclude the impact of noncash-related charges, such as stock-based compensation, amortization of intangible assets and restructuring costs as well as acquisition-related costs and other nonrecurring items. A reconciliation of non-GAAP income from operations and per share earnings is provided in the press release table. We will be referring to earnings slides posted on the Investor Relations section of our website as well.

提醒一下，在今天的電話會議中，我們將同時參考 GAAP 和非 GAAP 結果。非 GAAP 措施排除了非現金相關費用的影響，例如基於股票的薪酬、無形資產攤銷和重組成本以及收購相關成本和其他非經常性項目。新聞稿表中提供了非 GAAP 運營收入和每股收益的對賬。我們還將參考發佈在我們網站投資者關係部分的收益幻燈片。

And with that, I'd like to turn the call over to Yuval Wasserman. Yuval?

有了這個，我想把電話轉給 Yuval Wasserman。尤瓦爾？

Thank you, Annie. Good morning, everyone, and thank you for joining us for our first quarter earnings conference call. The first quarter of 2017 continued what has been an exciting time and an incredible run for AE in the semiconductor capital equipment industry in particular. Significant demand for our enabling power conversion technology for advanced semiconductor applications again proved to record levels.

謝謝你，安妮。大家早上好，感謝您加入我們的第一季度收益電話會議。2017 年第一季度延續了 AE 在半導體資本設備行業尤其是令人興奮的時刻和令人難以置信的運行。對我們用於高級半導體應用的使能電源轉換技術的巨大需求再次證明達到了創紀錄的水平。

Together with rebound in our industrial applications, total revenues increased 45% year-over-year and non-GAAP EPS grew 89%. Our ability to consistently manufacture and deliver high-quality products and device -- and services to our customers during this unprecedented ramp in demand is a testament to our organization's commitment to operational excellence.

加上我們工業應用的反彈，總收入同比增長 45%，非 GAAP 每股收益增長 89%。我們能夠在這種前所未有的需求增長期間始終如一地製造和交付高質量的產品和設備以及為我們的客戶提供服務，這證明了我們組織對卓越運營的承諾。

All of this allowed us to deliver impressive results with first quarter revenues of over $149 million, non-GAAP EPS of $1.04 and nearly $43 million in cash generation.

所有這一切使我們取得了令人矚目的成果，第一季度收入超過 1.49 億美元，非 GAAP 每股收益為 1.04 美元，產生的現金接近 4300 萬美元。

Semiconductor revenues increased over 50% from last year to $105 million. Accelerated demand in advanced memory devices, primarily in mobile handset and solid state drives, combined with a strong performance from our Korean OEMs led to our fifth consecutive quarter of record semiconductor revenue. Together with a ramp of 1x nanometer logic, the considerable investment in 3D NAND is driving much of the growth, both in fab capacity expansion and next-generation technology development.

半導體收入比去年增長 50% 以上，達到 1.05 億美元。對高級存儲設備（主要是手機和固態硬盤）的需求加速增長，加上我們韓國 OEM 的強勁表現，使我們連續第五個季度的半導體收入創下歷史新高。加上 1x 納米邏輯的增加，對 3D NAND 的大量投資正在推動晶圓廠產能擴張和下一代技術開發的大部分增長。

As they increasingly move to increasingly sophisticated 3D NAND devices with additional layers and challenging architectures, more complex deposition in etch equipment is required. Advanced Energy is playing an important role in delivering highly engineered precision power supplies for these new processing tools.

隨著他們越來越多地轉向具有更多層和具有挑戰性架構的日益複雜的 3D NAND 設備，需要在蝕刻設備中進行更複雜的沉積。Advanced Energy 在為這些新加工工具提供高度工程化的精密電源方面發揮著重要作用。

A key driver of our success comes from continuously investing in R&D and winning new designs in this fast-growing areas. This quarter, we saw a broad set of design wins in semiconductor applications for customers in Asia and the U.S. Advanced 3D memory and logic devices drove the majority of the wins. We also won designs in new plasma-enhanced atomic layer deposition applications with our new remote plasma source technology, which is being adopted for radicals-based processes.

我們成功的一個關鍵驅動力來自於在這個快速發展的領域不斷投資研發和贏得新設計。本季度，我們看到亞洲和美國客戶在半導體應用領域取得了廣泛的設計勝利。先進的 3D 內存和邏輯設備推動了大部分勝利。我們還憑藉我們的新型遠程等離子體源技術贏得了新型等離子體增強原子層沉積應用的設計，該技術正被用於基於自由基的工藝。

Finally, this quarter we had an important milestone with our solid state RF matching product, which has progressed from evaluation to pilot and mass production for advanced etch applications. Solid state RF matches enable the performance of emerging short plasma processes with high speed, reliable and dynamic control.

最後，本季度我們的固態 RF 匹配產品取得了一個重要的里程碑，該產品已從評估發展到高級蝕刻應用的試驗和批量生產。固態射頻匹配使新興的短等離子體工藝具有高速、可靠和動態控制的性能。

Looking ahead, solid state drives and mobile headsets continue to generate demand, leading to 3D NAND acceleration and additional foundry and logic investment in the ramp of 10 nanometers and the development of 7 and 5 nanometers. As the semiconductor capital equipment industry strives to keep pace, some OEMs are reaching maximum for capacity and tailoring their material planning accordingly. This leads us to expect our second quarter semiconductor revenues to remain at or above the first quarter's level.

展望未來，固態硬盤和移動耳機繼續產生需求，導致 3D NAND 加速，並在 10 納米的爬坡以及 7 和 5 納米的發展中增加代工和邏輯投資。隨著半導體資本設備行業努力跟上步伐，一些原始設備製造商正在達到最大產能並相應地調整他們的材料計劃。這使我們預計第二季度的半導體收入將保持在或高於第一季度的水平。

Our industrial market saw a significant rebound in the first quarter, increasing 27% from the fourth quarter. Strong growth in our thin film products came predominantly from industrial coating of advanced materials for consumer electronics. Historically, the deposition of these highly engineered materials could not be realized using standard chemical processes. Our sophisticated power supplies are enabling this highly engineered materials and coatings to have the color, composition and property desired using reactive, or pulsed sputtering processes.

我們的工業市場在第一季度出現了明顯的反彈，比第四季度增長了 27%。我們薄膜產品的強勁增長主要來自消費電子產品先進材料的工業塗層。從歷史上看，使用標準化學工藝無法實現這些高度工程化材料的沉積。我們先進的電源使這種高度工程化的材料和塗層具有使用反應或脈衝濺射工藝所需的顏色、成分和特性。

Revenues from our Specialty Industrial Power business also improved significantly from the growth of our high-voltage products for the mass spectrometry market and the ramp of our thermal products through our expanding distribution channels and partnerships like Rockwell Automation.

我們的特種工業電源業務的收入也因我們面向質譜市場的高壓產品的增長以及通過我們不斷擴大的分銷渠道和與羅克韋爾自動化等合作夥伴關係的熱產品的增加而顯著提高。

Our continuing growth depends on our ability to design our solutions into OEMs equipment. This quarter, we had a variety of design wins across our industrial markets. In the industrial thin film space, we won designs in advanced coating applications. In China, we expanded our presence through wins in the flat panel display and the PV solar cell applications with the our new Ascent AP product.

我們的持續增長取決於我們將解決方案設計到 OEM 設備中的能力。本季度，我們在工業市場上贏得了多項設計大獎。在工業薄膜領域，我們贏得了先進塗層應用的設計。在中國，我們憑藉新的 Ascent AP 產品在平板顯示器和光伏太陽能電池應用領域取得成功，擴大了我們的影響力。

In specialty power, we're seeing growing success in winning high-voltage designs for mass spectrometry, while actively engaging with a healthy pipeline of new opportunities, including x-ray and thermal applications in heavy industry, safety and security spaces.

在特種電源方面，我們在贏得質譜儀高壓設計方面取得了越來越大的成功，同時積極參與健康的新機會管道，包括重工業、安全和安保空間中的 X 射線和熱應用。

We're accelerating our penetration of the mass spectrometry market due to a differentiated accuracy, stability and power density of our newly released high-voltage power supply.

由於我們新發布的高壓電源具有差異化的精度、穩定性和功率密度，我們正在加速我們對質譜市場的滲透。

This quarter, we expanded our Power Control Module market presence by winning an additional glass line project and broadening our business collaboration with Siemens to promote our power control modules in the Chinese glass industry.

本季度，我們贏得了一個額外的玻璃生產線項目並擴大了與西門子的業務合作，以在中國玻璃行業推廣我們的功率控制模塊，從而擴大了我們的功率控制模塊市場份額。

Increasingly, and in line with our growth strategy, we are expanding our TAM in market share by introducing new applications for our existing products and technologies across adjacent markets. For example, we have adapted our semiconductor pyrometry technology to a broader array of industrial markets. This technology can be especially useful in materials processing due to the need for accurate, noncontact temperature measurements, such as in the production of steel, which is one of the applications where we have successfully completed a better installation. Similar examples exist in power control modules and high-voltage power supplies, which we've successfully transitioned from industrial to semiconductor applications.

根據我們的增長戰略，我們越來越多地通過在相鄰市場為我們現有的產品和技術引入新的應用程序來擴大我們的 TAM 市場份額。例如，我們已將我們的半導體高溫計技術應用於更廣泛的工業市場。由於需要精確的非接觸式溫度測量，該技術在材料加工中特別有用，例如在鋼鐵生產中，這是我們成功完成更好安裝的應用之一。類似的例子存在於電源控制模塊和高壓電源中，我們已經成功地將它們從工業應用過渡到半導體應用。

For the second quarter, we expect total industrial revenues to keep pace with the first quarter run rate, growing across all segments. Thin films should account for much of the increase due to significant growth in advanced industrial coatings, solar PV, flat panel displays and architectural glass. In our specialty power business, strong performance in PCM and high-voltage products for mass spectrometry and scanning electron microscope applications should also contribute.

對於第二季度，我們預計工業總收入將與第一季度的運行速度保持同步，所有部門都將增長。由於先進工業塗料、太陽能光伏、平板顯示器和建築玻璃的顯著增長，薄膜應佔增長的大部分。在我們的專業電源業務中，PCM 的強勁性能以及用於質譜和掃描電子顯微鏡應用的高壓產品也應該有所貢獻。

Our first quarter results demonstrate the success of our aftermarket strategy as we identify and pursue the opportunities to customize the value we deliver to each of our customers throughout the entire life cycle of our product.

我們的第一季度業績表明我們的售後市場戰略取得了成功，因為我們發現並尋求機會定制我們在產品的整個生命週期中為每位客戶提供的價值。

We continue to become more intimate and knowledgeable with each customer's unique needs and direct our efforts at solving their problems. For some time now, we've been managing our service function as a growth business. As our business processes, management system and local entities continue to scale and improve and we add deeper engineering capability. We've been very pleased with the resulting accelerated growth that followed.

我們將繼續更加了解和了解每位客戶的獨特需求，並努力解決他們的問題。一段時間以來，我們一直將我們的服務職能作為一項增長業務來管理。隨著我們的業務流程、管理系統和本地實體不斷擴展和改進，我們增加了更深層次的工程能力。我們對隨之而來的加速增長感到非常滿意。

We look forward to continued growth in the second quarter as we hold to our simple playbook of understanding our customers' needs and delivering highly engineered solutions as quickly as possible. Recently, we celebrated the opening of a new service center in Xi'an, China in close proximity to our local semiconductor customers. This investment will allow us to provide competitive turnaround time and increase our responsiveness to the local semi players.

我們期待第二季度的持續增長，因為我們堅持理解客戶需求並儘快提供高度工程化解決方案的簡單策略。最近，我們慶祝在中國西安開設了一個新的服務中心，該中心靠近我們當地的半導體客戶。這項投資將使我們能夠提供有競爭力的周轉時間，並提高我們對本地半成品廠商的響應能力。

Entering the second quarter of 2017, we remain at historically high levels of semiconductor revenue and expect to see sequential growth as our industrial business continues to rebound and our industrial content increases. Our focus and increasing investment in innovation, leadership and technology development is helping us better serve our customers and enable their next-generation technologies for both semiconductors and industrial applications.

進入2017年第二季度，我們的半導體收入保持在歷史高位，隨著我們的工業業務持續回暖和工業含量增加，預計將出現環比增長。我們對創新、領導力和技術開發的關注和不斷增加的投資正在幫助我們更好地服務於我們的客戶，並為他們的半導體和工業應用提供下一代技術。

Continuous investment in introducing new products and transferring technology between applications is allowing us to diversify and enter new and adjacent markets and expand our TAM. With impressive results and a strong balance sheet, we continue to deliver on our strategy and pursue organic and inorganic opportunities for accelerated growth as we progress towards our aspirational goals.

持續投資推出新產品和在應用程序之間轉移技術使我們能夠多樣化並進入新的和相鄰的市場並擴大我們的 TAM。憑藉令人印象深刻的業績和強勁的資產負債表，我們將繼續實施我們的戰略，並在我們朝著遠大目標邁進的過程中尋求加速增長的有機和無機機會。

I'd like to thank our customers, partners, shareholders and our valued employees for their support. Thank you for joining us. And we look forward to seeing many of you in the upcoming quarter.

我要感謝我們的客戶、合作夥伴、股東和我們尊貴的員工的支持。感謝您加入我們。我們期待在即將到來的季度見到你們中的許多人。

I like to turn the call over to Tom. Tom?

我想把電話轉給湯姆。湯姆？

Thank you, Yuval. The first quarter marked the fifth straight quarter of top line growth. Total revenue was $149.4 million, up 10.3% sequentially and 44.9% from a year ago. Non-GAAP operating margin was 31.9% compared to 30.7% in the fourth quarter and 25.3% last year.

謝謝你，尤瓦爾。第一季度標誌著收入連續第五個季度增長。總收入為 1.494 億美元，環比增長 10.3%，同比增長 44.9%。非美國通用會計準則營業利潤率為 31.9%，而第四季度為 30.7%，去年為 25.3%。

We generated $42.7 million in cash from continuing operations. Over the past year, we have seen a nearly 50% increase in business. Our ability to quickly respond to customer demand, manage our development projects, leverage our cost and improved working capital is a testament to our highly efficient organization and commitment to customers.

我們從持續經營中產生了 4270 萬美元的現金。在過去的一年裡，我們的業務增長了近 50%。我們快速響應客戶需求、管理我們的開發項目、利用我們的成本和改善營運資金的能力證明了我們高效的組織和對客戶的承諾。

Both semiconductor and service revenues reached new highs this quarter. Semiconductor sales increased 8.1% sequentially to $104.6 million due to ongoing industry-wide momentum and the critical nature of our products. Service revenue rose 5.5% sequentially, reaching $20.5 million as more and more customers recognized the competitive advantage that our service offerings provide and lower total cost of ownership.

本季度半導體和服務收入均創下新高。半導體銷售額環比增長 8.1% 至 1.046 億美元，這得益於整個行業的持續發展勢頭和我們產品的關鍵特性。服務收入環比增長 5.5%，達到 2050 萬美元，因為越來越多的客戶認識到我們的服務產品提供的競爭優勢和更低的總擁有成本。

As expected, industrial sales bounced back significantly from the fourth quarter, increasing 26.9% to $24.2 million. We continue to aggressively pursue strategic opportunities in industrial markets to expand our TAM, smooth out the cyclicality of our business and increase the quality of earnings. We would like to reach the point where 1/3 of our total revenue comes from our industrial business.

正如預期的那樣，工業銷售額從第四季度開始大幅反彈，增長 26.9% 至 2420 萬美元。我們繼續積極尋求工業市場的戰略機會，以擴大我們的 TAM，消除我們業務的周期性並提高盈利質量。我們希望達到我們總收入的 1/3 來自我們的工業業務的地步。

Non-GAAP operating margin for the quarter of 31.9% exceeded our guided range and is a 660 basis point improvement compared to 25.3% in the first quarter of 2016. Of this, 90 basis points came from cost of sales and 570 basis points from leveraging our operating expenses, specifically SG&A.

本季度非美國通用會計準則營業利潤率為 31.9%，超出了我們的指導範圍，與 2016 年第一季度的 25.3% 相比提高了 660 個基點。其中，90 個基點來自銷售成本，570 個基點來自我們的運營支出，特別是 SG&A。

The benefits of the business process improvements we've made are paying off as we scale our business.

隨著我們擴展業務，我們改進業務流程所帶來的好處正在得到回報。

For example, we expanded the use of our ERP system around the globe, consolidated our administrative centers and utilized the shared services center in Shenzhen. This quarter, our human resource and IT teams are working to standardize our global payroll process and automate our talent acquisition. Initiatives such as these allow us to leverage our infrastructure during periods of high growth and drive more to the bottom line.

例如，我們在全球範圍內擴大了ERP系統的使用，整合了我們的行政中心，並利用了深圳的共享服務中心。本季度，我們的人力資源和 IT 團隊正在努力標準化我們的全球薪資流程並自動化我們的人才招聘。諸如此類的舉措使我們能夠在高增長時期利用我們的基礎設施，並推動更多的利潤。

Our investment in research and development also continues to grow. First quarter research and development spending was 16.1% higher than last year. Our focus on expanding our industry-leading technology to provide next-generation solutions to our customers is a critical element of our strategy.

我們在研發方面的投資也在持續增長。第一季度研發支出比去年同期增長 16.1%。我們專注於擴展我們行業領先的技術，為我們的客戶提供下一代解決方案，這是我們戰略的一個關鍵要素。

Other income expense this quarter of $3.2 million includes the cost of a currency option that we entered into for potential offshore acquisition that did not come to fruition. This expense is a nonrecurring M&A cost for non-GAAP EPS reported.

本季度 320 萬美元的其他收入支出包括我們為未實現的潛在離岸收購而訂立的貨幣期權的成本。該費用是報告的非 GAAP 每股收益的非經常性併購成本。

The tax rate for the first quarter was 11.5%. For 2017, we expect a total year tax rate of approximately 12%.

第一季度的稅率為11.5%。對於 2017 年，我們預計全年稅率約為 12%。

Non-GAAP EPS for the quarter was $1.04 compared to $1.06 in the fourth quarter and $0.55 in the previous year. The $1.06 in the fourth quarter included a favorable 2016 year-end tax adjustment benefit equivalent to $0.16. Compared to a year ago, first quarter non-GAAP EPS nearly doubled due to the revenue growth and cost leverage.

本季度非美國通用會計準則每股收益為 1.04 美元，而第四季度為 1.06 美元，去年同期為 0.55 美元。第四季度的 1.06 美元包括相當於 0.16 美元的 2016 年年底稅收調整優惠。與一年前相比，由於收入增長和成本槓桿，第一季度非 GAAP 每股收益幾乎翻了一番。

Turning to the balance sheet. We generated $42.7 million of cash from continuing operations, and exited the quarter with $322.7 million in cash and marketable securities. We continue to improve our working capital management. As an example, days sales outstanding is now 46 days, an 11-day year-over-year improvement, driven by process improvements made by our customer order and receivables team.

轉向資產負債表。我們從持續經營中產生了 4270 萬美元的現金，並以 3.227 億美元的現金和有價證券退出本季度。我們繼續改善營運資金管理。例如，在我們的客戶訂單和應收賬款團隊改進流程的推動下，未完成銷售天數現在為 46 天，同比減少 11 天。

In summary, the first quarter was our fifth consecutive quarter of revenue increases. The financial results show our ability to leverage cost, invest in R&D and manage working capital in a high-growth environment. Our balance sheet remains extremely healthy. We remain committed to our capital deployment strategy as we identify organic and inorganic opportunities to grow our business.

總之，第一季度是我們收入連續第五個季度增長。財務結果表明我們有能力在高增長環境中利用成本、投資研發和管理營運資金。我們的資產負債表仍然非常健康。我們仍然致力於我們的資本部署戰略，因為我們確定了有機和無機機會來發展我們的業務。

This concludes our prepared remarks for today. Operator, I'd like to open the call for questions.

我們今天準備好的發言到此結束。接線員，我想打開問題電話。

(Operator Instructions) We'll be taking our first question from the line of Edwin Mok from Needham & Company.

（操作員說明）我們將從 Needham & Company 的 Edwin Mok 那裡回答我們的第一個問題。

My first question is on the semi cap side of the business, basically you guided that flat to up sequentially in the second quarter and I think Yuval -- you mentioned, it sounds like from your comments, you're seeing some supply chain challenges of your customer that's limiting the sequential growth. Can you kind of maybe give little more color around that? And is there anything you guys can do to help that and maybe -- and I have 2 follow ups?

我的第一個問題是關於業務的半市值方面，基本上你在第二季度引導該單位連續上升，我認為 Yuval——你提到過，從你的評論來看，你看到了一些供應鏈挑戰您的客戶限制了連續增長。你能不能給它更多的顏色？你們有什麼可以幫助解決這個問題的嗎？也許——我有 2 次跟進？

Sure, Edwin. As you all know, our business is driven by our customers' shipments. And as we see continuous growth in the business, some of the OEMs, definitely not all of them, due to constraints of their own capacity or their supply chain, non-AE suppliers, caused them to basically max capacity and accordingly plan their material of critical components, such as AE, et cetera. That also was the reason why Q4 was so strong for Advanced Energy. You remember last quarter, we had a significant growth in India semi business, driven by our customers' positioning of material for early shipments in Q1 and especially compensating for Chinese New Year. So what we see in our business is a reflection of our customers' projected shipments, not revenue. Their shipment plan. So right now, we're really excited with the performance of the business and the company. If you look at the results of Q1 and the range of guidance for Q2, we are making huge progress towards our aspirational goals. And that combined with recent report from VLSI Research indicating that we have gained on average across our product lines 2.5 points of market share, it's a great position to be in as we believe that the business will continue to grow through the second half and even through next year.

當然，埃德溫。眾所周知，我們的業務是由客戶的出貨量驅動的。正如我們看到業務的持續增長，一些 OEM，絕對不是全部，由於他們自己的能力或他們的供應鏈的限制，非 AE 供應商，導致他們基本上最大化產能並相應地計劃他們的材料關鍵組件，例如 AE 等。這也是為什麼 Q4 對於 Advanced Energy 如此強勁的原因。你還記得上個季度，我們的印度半導體業務取得了顯著增長，這是由於我們的客戶在第一季度提前發貨的材料定位，特別是對中國新年的補償。因此，我們在業務中看到的是客戶預計出貨量的反映，而不是收入。他們的裝運計劃。所以現在，我們對業務和公司的表現感到非常興奮。如果您查看第一季度的結果和第二季度的指導範圍，我們正在朝著我們的理想目標取得巨大進展。再加上 VLSI Research 最近的報告表明我們的產品線平均獲得了 2.5 個百分點的市場份額，這是一個很好的位置，因為我們相信該業務將在下半年甚至明年。

Okay, great. Actually that's really good color. I have 1 follow up, on your prepared remark you talked about strong performance from Korean OEM. Are those wins that you guys have secured historically? Or you just seeing those customer basically seeing as we saw strong demand of Korea and therefore the SEM will pickup.

好的，太好了。其實這個顏色很好看。我有 1 個跟進，在你準備好的評論中，你談到了韓國 OEM 的強勁表現。那些勝利是你們歷史上獲得的嗎？或者你只是看到那些客戶基本上看到了我們看到韓國的強勁需求，因此 SEM 將會回升。

The strength in Korea is, I believe, based on recent information and what we view in the market is strongly influenced by the increase of investment in memory in Korea. And we see more business going to the direction of Korean OEMs. We are a player and a key supplier to Korean wafer fab equipment manufacturers. And as the continuous increase in investment in memory in Korea, we saw a significant growth in our revenue from Korea in the first quarter. I hope that answered the question, Edwin.

我認為，韓國的實力是基於最近的信息，我們對市場的看法受到韓國內存投資增加的強烈影響。我們看到更多的業務往韓國 OEM 的方向發展。我們是韓國晶圓廠設備製造商的參與者和主要供應商。並且隨著韓國內存投資的持續增加，我們在第一季度看到來自韓國的收入有顯著增長。我希望這回答了問題，埃德溫。

Actually, it did. It was a great answer. Last question I have is on the non-semi side. I think there you mentioned your thermal power module business has ongoing partnership with Siemens that is helping your footprint there in China. Can you maybe provide some more color in terms of how that partnership works? And -- I understand that is a small part of the industrial business right now. Do you expect that to drive greater growth, I guess, longer term?

實際上，確實如此。這是一個很好的答案。我的最後一個問題是非半邊。我想你在那裡提到你的熱功率模塊業務與西門子有持續的合作夥伴關係，這有助於你在中國的足跡。您能否就這種夥伴關係的運作方式提供更多色彩？而且 - 我知道這只是工業業務的一小部分。你認為這會推動更大的增長嗎？我猜，從長遠來看？

Yes. But let me qualify. Our industrial business is made of multiple small components, which is a good thing. And we like it because it's very diversified and it's not very cyclical in aggregate. The power control modules that we acquired was a mainly European-centric business, and we grow it as we take these products to new world regions and drive them through our expanding and growing distribution channel. Part of our hybrid sales strategy also include partnerships with what we call channel partners. One of them is Rockwell Automation. Today, Rockwell reps and users of the Rockwell Automation systems can select AE product through the Rockwell system or website. Similarly, as we continue to expand and drive partnership with automation leaders, we have teamed up with Siemens Automation. And Siemens is expanding our presence globally, and more specifically, taken us to China glass market. Now the glass market we serve with the power control modules is not the thin film market, but rather the glass melting and float business, which is for us another layer of TAM that will continue to increase or we add more products and technologies.

是的。但是讓我有資格。我們的工業業務是由多個小組件組成的，這是一件好事。我們喜歡它，因為它非常多元化，而且總體上不是很週期性。我們收購的電源控制模塊主要以歐洲為中心的業務，隨著我們將這些產品帶到新的世界地區並通過我們不斷擴大和發展的分銷渠道推動它們發展，我們的業務也在增長。我們混合銷售策略的一部分還包括與我們稱為渠道合作夥伴的合作夥伴關係。其中之一是羅克韋爾自動化。如今，羅克韋爾代表和羅克韋爾自動化系統的用戶可以通過羅克韋爾系統或網站選擇 AE 產品。同樣，隨著我們繼續擴大和推動與自動化領導者的合作關係，我們與西門子自動化建立了合作關係。西門子正在全球範圍內擴大我們的業務，更具體地說，將我們帶到了中國玻璃市場。現在我們用功率控制模塊服務的玻璃市場不是薄膜市場，而是玻璃熔化和浮法業務，這對我們來說是另一層 TAM 將繼續增加或我們增加更多的產品和技術。

Our next question comes from the line of Joe Maxa from Dougherty & Company.

我們的下一個問題來自 Dougherty & Company 的 Joe Maxa。

I wanted to follow up on the semi strength, you mentioned that you expect to see the business continue to grow through the second half of next year. So I was wondering if -- I know you don't give specific color, but it sounds like you're talking the second half of '17 you think could be greater than the first half of '17? Is that how I should think of that?

我想跟進半強勢，你提到你希望看到業務在明年下半年繼續增長。所以我想知道是否 - 我知道你沒有給出具體的顏色，但聽起來你說的是 17 年下半年，你認為可能比 17 年上半年更好？我應該這麼想嗎？

We're not providing guidance, Joe, for the second half. But right now, reflecting the general sentiment in the market, both in the investment market, but also talking to our customers and their customers, we -- as we stated earlier, we believe that 2017 will be a better year than 2016. And we also agree with the general sentiment that the investment and growth in memory will continue through 2018. Now if you look at the -- right now based on the first half, right, our Q1 was a growth quarter, our Q2 was a growth quarter, right, projected as we guide. And again, we believe that the whole year in general will be better than 2016.

喬，我們不會為下半場提供指導。但現在，反映市場的普遍情緒，無論是在投資市場，還是在與我們的客戶和他們的客戶交談時，我們——正如我們之前所說，我們相信 2017 年將比 2016 年更好。我們也同意內存投資和增長將持續到 2018 年的普遍看法。現在，如果你看看 - 現在基於上半年，我們的第一季度是一個增長季度，我們的第二季度是一個增長季度，對，按照我們的指導進行預測。同樣，我們相信全年總體上會好於 2016 年。

Okay. That's helps clear it up. I wanted to talk a little bit more about the industrial segment strength you are seeing. I understand it's very broad and you have a number of verticals, but are there a couple of keys that are really -- maybe go through that again on the keys that are really driving the strength in that business, if there are just a few?

好的。這有助於清理它。我想多談談你所看到的工業領域的實力。我知道它非常廣泛，你有很多垂直領域，但是否有幾個關鍵是真正的 - 如果只有幾個，也許可以在真正推動該業務實力的關鍵上再次討論？

Sure. I'll give you maybe 3 examples of areas that we plan, strategize and see potential growth going into the future. In the area of industrial thin films, we continued to grow and expand our industrial coating applications. We have unique technology that enable manufacturers of hard coating equipment to perform decorative films that are very unique in terms of the color, composition and structure. And this physical deposition process is enabled by our unique power supplies. A lot of these decorative or tribological coatings historically were made using chemical processes. Now the chemical processes are limited in their ability to tailor the color, composition, strength and properties of the film. Migrating into plasma processes allow the manufacturers to create very, very advanced coating that are applied not only to industrial applications but today also to consumer products. We view that as a growth area for us. Another growth area for us has been and still is, is the high-voltage product line. And within the high voltage, we focus on areas where we deliver a unique advantage. Mass spectrometry requires extremely stable and noise-free power, high-voltage power. We have a new power supply that has a very low ripple. It's a very accurate delivery of power, very stable. But the other thing, it has really high-power density, which allows our customers to have a smaller volume product. And as mass spectrometers moved from large machine in labs into almost field-deployed equipment and handheld devices for various applications, the need for high-power density is very important. So we have unique advantage there, and it's an area that we continue to pursue and gain design wins. The last example, again also for the high-voltage application space, is scanning electron microscopes. We are a critical supplier for scanning electron microscopes that are being used both in measurement and inspection in a semiconductor industry and other industries. Our unique and very advanced high-voltage power supplies enable the scanning electron microscopes to have the resolution and the capabilities required to move from one technology generation to another. I hope that answer the question, Joe.

當然。我會給你大概 3 個我們計劃、制定戰略並看到未來潛在增長的領域的例子。在工業薄膜領域，我們繼續發展和擴大我們的工業塗層應用。我們擁有獨特的技術，使硬塗層設備製造商能夠生產出在顏色、成分和結構方面都非常獨特的裝飾膜。這種物理沉積過程是由我們獨特的電源實現的。許多這些裝飾性或摩擦學塗層在歷史上都是使用化學工藝製成的。現在，化學工藝在調整薄膜的顏色、成分、強度和性能方面的能力受到限制。遷移到等離子工藝使製造商能夠創造出非常非常先進的塗層，這些塗層不僅適用於工業應用，而且如今也適用於消費品。我們認為這是我們的增長領域。我們的另一個增長領域一直是，現在仍然是高壓產品線。在高壓領域，我們專注於提供獨特優勢的領域。質譜分析需要極其穩定和無噪音的電源，高壓電源。我們有一個紋波非常低的新電源。這是一種非常準確的動力傳遞，非常穩定。但另一方面，它具有非常高的功率密度，這使我們的客戶能夠擁有更小體積的產品。隨著質譜儀從實驗室的大型機器轉變為幾乎現場部署的設備和用於各種應用的手持設備，對高功率密度的需求變得非常重要。所以我們在那裡擁有獨特的優勢，這是我們繼續追求並贏得設計勝利的領域。最後一個例子，同樣適用於高壓應用領域，是掃描電子顯微鏡。我們是掃描電子顯微鏡的重要供應商，掃描電子顯微鏡被用於半導體行業和其他行業的測量和檢測。我們獨特且非常先進的高壓電源使掃描電子顯微鏡具有從一代技術過渡到另一代技術所需的分辨率和功能。我希望這能回答問題，喬。

Our question comes from the line of Krish Sankar from Bank of America.

我們的問題來自美國銀行的 Krish Sankar。

A couple of them. First one, Yuval and Tom, curious on the foreign exchange hedge. Looks like there were euro forward contracts and you guys said that there was a planned acquisition that did not come through. So curious to see is that a number one in the eurozone along the industrial vertical? And what is the reason the acquisition did not happen?

他們中的幾個。第一個，Yuval 和 Tom，他們對外匯對沖很感興趣。看起來有歐元遠期合同，你們說有一個計劃中的收購沒有實現。很想知道它是歐元區工業垂直領域的第一名嗎？收購沒有發生的原因是什麼？

Sure. It was an offshore opportunity. It was priced in the foreign currency, which was volatile. We felt that was -- we wanted to lock it in first. In the end, there were some diligence items that we couldn't get comfortable with. That turned into evaluation issue. And we decided not to proceed. That said, let me give you an update on M&A. We have a series of smaller opportunities in the pipeline. They are very actionable. They're mostly private, domestic and international. And although we can't guarantee it, we do think that they will be coming to fruition in the near term.

當然。這是一個離岸機會。它以波動較大的外幣計價。我們覺得那是——我們想先鎖定它。最後，有一些我們無法接受的盡職調查項目。這變成了評估問題。我們決定不繼續。也就是說，讓我向您介紹併購的最新情況。我們有一系列較小的機會正在籌備中。他們非常可行。他們大多是私人的，國內的和國際的。雖然我們不能保證，但我們確實認為它們會在短期內取得成果。

Got it. And are these in the non-semi vertical?

知道了。這些是非半垂直的嗎？

Primarily, yes.

主要是，是的。

Got you, got you. That's very helpful. And then a follow-up, I guess, I mean I listened to your comments about how the full year is going to be stronger than last year and how things are still pretty strong. I know you guys don't give guidance on September, but just optically speaking, do you think September quarter semiconductor shipments for your guys in semi revenues would be at similar level to June or similar level to March? Or is it tough to forecast?

懂你，懂你。這很有幫助。然後是後續行動，我想，我的意思是我聽取了你關於全年將如何比去年更強勁以及情況如何仍然非常強勁的評論。我知道你們不會在 9 月給出指導，但從表面上看，你們認為 9 月季度半導體出貨量對你們半收入的影響會與 6 月或與 3 月相似的水平嗎？還是很難預測？

It's early to say. We feel good about our coming quarter Krish, and our revenues will follow with the industry primarily.

現在說還早。我們對即將到來的 Krish 季度感覺良好，我們的收入將主要與行業同步。

Yes, Krish, we're very excited about the year, in general. We're very excited about our progress towards our aspirational goals. We -- in fact, we're doing better than the plan we presented just six months ago. Obviously, as part of our very structured and rigorous planning process, we will now complete the strategic planning process, again, in Q3 and Q4 and update our goals if needed. But we're very excited about the progress thus far.

是的，Krish，總的來說，我們對這一年感到非常興奮。我們對實現理想目標的進展感到非常興奮。我們——事實上，我們比六個月前提出的計劃做得更好。顯然，作為我們非常結構化和嚴格的規劃流程的一部分，我們現在將再次在第三季度和第四季度完成戰略規劃流程，並在需要時更新我們的目標。但我們對迄今為止取得的進展感到非常興奮。

Got it. Got it. That's very helpful. And then just a final question, how much was AMAT and Lam as a percentage of sales in March?

知道了。知道了。這很有幫助。然後是最後一個問題，AMAT 和 Lam 在 3 月份的銷售額中所佔的百分比是多少？

I think it was 70% -- those 2 are little over 50% approximately. It will be in our...

我認為是 70%——這兩個大約略高於 50%。它將在我們的...

It will be in the Q.

它將在Q中。

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。

As I look at the Global Services segment, there was a time maybe 12, 18 months ago, when as a percentage of your semi cap equipment sales it was 25% to 30%, this past quarter it was less than 20% of semi cap equipment. And obviously the semi cap strength largely explains that, but as we think about the relationship between those two, is there essentially kind of a lagging effect where even if equipment slows down, global services will continue to kick up for the time being?

當我觀察全球服務部門時，可能在 12 個月、18 個月前，當時它佔半盤設備銷售額的百分比是 25% 到 30%，上個季度它還不到半盤設備銷售額的 20%設備。顯然，半市值強度在很大程度上解釋了這一點，但當我們考慮這兩者之間的關係時，是否存在本質上的滯後效應，即即使設備放緩，全球服務暫時也會繼續增長？

Pavel, we view service is a much more stable business and less cyclical. Obviously, with increase in fab utilization and increase in our installed base in our service offerings, we continue to see growth. And we have been growing this business quarter-over-quarter, significantly. I will not necessarily look at the relationship between the revenue of products and the revenue of service because of as you said, there is a lagging effect. Also, most of the new equipment that had been sold and shipped and installed is under warranty. And equipment under warranty does not generate revenue. So a lot of the revenue comes from equipment that is post warranty. And for that reason, if you think about it, we have a continuously growing installed base that creates a growing SAM. And with our increased development of engineered service solutions and products and gaining market share from third-party repair shops, we see this nice acceleration in growth. We also view the business as a growth business and continue to invest in engineered product and also in localized service centers. Just like the one that we celebrated about 1 week or 2 weeks ago in Xi'an, China. China see a significant growth in number of fabs, existing and new fabs and the ability to operate locally in very close proximity to our customers allow us to be very responsive and very close to our customer needs.

Pavel，我們認為服務是一項更加穩定且週期性更小的業務。顯然，隨著晶圓廠利用率的提高和我們服務產品安裝基礎的增加，我們繼續看到增長。而且我們一直在顯著地逐季增長這項業務。我不一定會看產品收入和服務收入之間的關係，因為正如你所說，存在滯後效應。此外，大多數已售出、裝運和安裝的新設備都在保修期內。保修期內的設備不會產生收入。所以很多收入來自保修期後的設備。出於這個原因，如果您考慮一下，我們擁有不斷增長的安裝基礎，從而創建了不斷增長的 SAM。隨著我們增加工程服務解決方案和產品的開發，並從第三方維修店獲得市場份額，我們看到了這種良好的增長加速。我們還將該業務視為增長業務，並繼續投資於工程產品和本地化服務中心。就像我們大約 1 週或 2 週前在中國西安慶祝的那樣。中國的晶圓廠數量顯著增長，現有和新的晶圓廠以及在非常接近客戶的地方運營的能力使我們能夠非常迅速地響應並非常接近我們的客戶需求。

Okay. And just kind of a housekeeping item on the income statement. There is thoroughly meaningful amount of noncash stock comp just about every quarter, but the share count, both the basic share count and the fully diluted share count is almost identical to what it was 3 or 4 quarters ago. So what's the -- where is that variance coming from?

好的。只是損益表上的一項內務管理項目。幾乎每個季度都有數量可觀的非現金股票，但股票數量，基本股票數量和完全稀釋後的股票數量幾乎與 3 或 4 個季度前相同。那是什麼——這種差異來自哪裡？

Well, the share count is -- actually from -- we see it as creeping. It is starting to creep and Pavel, the way I would look at this is that's why we stick to the capital deployment plan. We haven't done a share repurchase in four quarters. That's still on -- it's still on our [undepreciated] rate. I mean, at a minimum, we want to prevent creeping our share count. The share count itself, as you know, when you look at diluted, it's a formula, it's based -- people still have options that sometimes go back 5 or 10 years. It's based on the stock comp. It's based on a variety of factors. But in the end, equity count is starting to go up, and that is on our radar.

好吧，份額數量——實際上來自——我們認為它在蔓延。它開始蔓延，帕維爾，我看待這個的方式就是我們堅持資本部署計劃的原因。我們已經四個季度沒有進行股票回購。那還在——它仍然在我們的 [未折舊] 率。我的意思是，至少，我們要防止我們的份額數量增加。正如你所知，股票數量本身，當你看稀釋時，它是一個公式，它是基於——人們仍然有選擇，有時可以追溯到 5 或 10 年。它基於股票補償。它基於多種因素。但最終，股權數量開始上升，這是我們的關注點。

Okay. I was going to say, it actually looks pretty stable to me, but maybe creeping a little bit.

好的。我要說的是，它對我來說實際上看起來很穩定，但可能有點爬行。

A little bit, 50,000 shares.

一點點，五萬股。

Our next question comes from the line of Mehdi Hosseini from SIG. Looks like we are not getting any answer from this line.

我們的下一個問題來自 SIG 的 Mehdi Hosseini。看起來我們沒有從這一行得到任何答案。

(technical difficulty)

（技術難度）

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

（操作員說明）我們的下一個問題來自 D.A. 的 Tom Diffely。戴維森。

Maybe first a clarification. It sounded like you said earlier that some of your OEMs are reaching kind of maximum capacity right now. And if that's the case, what does that mean for growth in the semiconductor market going forward for you?

也許首先要澄清一下。聽起來就像你之前說的，你的一些原始設備製造商現在已經達到了最大產能。如果是這樣的話，這對您未來半導體市場的增長意味著什麼？

The comment we made was some OEMs have reached maximum capacity, which means their factories are full and their ability to build, test and ship products is at max. In some cases, there -- they have max capacities driven by their supply chain. So we don't believe that, that will be a showstopper going forward. I think that without talking on behalf of other companies, I know that there are investment in increased capacity across the board both through insourcing, but also outsourcing. I view that as a temporary capacity utilization situation, but I don't see that as a long-term inhibitor for growth.

我們的評論是一些原始設備製造商已經達到了最大產能，這意味著他們的工廠已經滿員，他們製造、測試和運輸產品的能力也達到了最大值。在某些情況下，他們擁有由供應鏈驅動的最大產能。所以我們不相信，這將成為未來的阻礙。我認為，在不代表其他公司發言的情況下，我知道通過內包和外包都在全面提高產能方面進行投資。我認為這是暫時的產能利用率情況，但我不認為這是增長的長期抑制因素。

Okay, great. And do you have -- it sounds like plenty of capacity to serve the customers’ needs?

好的，太好了。你有沒有——聽起來有足夠的能力來滿足客戶的需求？

That is correct. Our capacity right now, due to our unique operational model, will allow us to continue to grow through our strategic horizon without major capital investment.

那是對的。由於我們獨特的運營模式，我們現在的能力將使我們能夠在沒有大量資本投資的情況下繼續通過我們的戰略視野發展。

Great. Okay. And I had a question on the 3D NAND side. When the players, when the customers move from the second, third to fourth generations, does that require different etchers -- I'm sorry, power supplies for the etch? Or is it just more power supplies because there's more etch steps.

偉大的。好的。我有一個關於 3D NAND 方面的問題。當玩家、客戶從第二代、第三代轉移到第四代時，是否需要不同的蝕刻機——對不起，蝕刻機的電源？或者只是因為有更多的蝕刻步驟而需要更多的電源。

It's a great question. It's both. As the industry migrates to more complex architecture, it's much more challenging aspect ratios and the structure. Two things happen. Number one, some of the deposition etch processes will require more advanced power delivery systems and emerging applications that require different chemistries or different process steps will generate new sets of tools that will require either existing or new power delivery systems. So all in all, as you indicated, the growth is not purely driven by capacity, it's capacity and the migration to next-generation memory devices.

這是一個很好的問題。兩者都是。隨著行業遷移到更複雜的架構，縱橫比和結構更具挑戰性。有兩件事發生了。第一，一些沉積蝕刻工藝將需要更先進的功率傳輸系統，而需要不同化學物質或不同工藝步驟的新興應用將產生新的工具集，這些工具將需要現有或新的功率傳輸系統。因此，總而言之，正如您所指出的，增長並非純粹由容量驅動，而是容量和向下一代存儲設備的遷移。

Okay, great. Then kind of on the same lines, obviously, great market share gains over the last year. So are you seeing the same competitors? Or is that list getting smaller and smaller at the leading-edge nodes?

好的，太好了。然後在同一條線上，顯然，去年市場份額大幅增長。那麼您看到的是相同的競爭對手嗎？還是該列表在前沿節點上變得越來越小？

I think in general, you have the very similar group of competitors in our domain that continue to compete. There are new very small scale, mostly foreign companies that are, I call it like, operate in the fringes and trying to enter the market. The barrier for entry is very high in this industry, in general, but in this specific technology in particular. So we don't expect to see a significant change in the competitive landscape in terms of number of players. We do anticipate a healthy competition continuing between the current players.

我認為總的來說，在我們的領域中，你有非常相似的競爭對手群體，他們會繼續競爭。有新的非常小的規模，主要是外國公司，我稱之為，在邊緣經營並試圖進入市場。一般來說，這個行業的進入門檻非常高，但在這個特定的技術領域尤其如此。因此，我們預計在玩家數量方面競爭格局不會發生重大變化。我們確實預計當前玩家之間將繼續進行良性競爭。

Okay. And then finally, Tom, when you look at obviously the revenues are at or above your target, while today, what is the -- what are the margins of today look like versus kind of what your longer-term plan is?

好的。最後，湯姆，當你看到收入明顯達到或超過你的目標時，而今天，今天的利潤率與你的長期計劃相比是多少？

Well, the operating margins, we have leverage in them, and it's mostly SG&A. So at higher levels of revenue, yes, our operating margins can expand. On the other side, if revenues decrease, our operating margins would decrease as well. I did want to say, one interesting thing about our operating margins, the leverage is mostly on our operating expenses. If you look at our gross margin, it's been 52% for 6 to 8 quarters now. And the reason is, as we get leverage and purchase price reductions from our vendors in our cost to sales, we share that with our customers. So the operating expenses are fixed and they are leverage-able. And they will fluctuate up and down with our revenues.

好吧，營業利潤率，我們在其中有影響力，而且主要是 SG&A。因此，在更高的收入水平上，是的，我們的營業利潤率可以擴大。另一方面，如果收入下降，我們的營業利潤率也會下降。我確實想說，關於我們的營業利潤率的一件有趣的事情，槓桿主要是我們的營業費用。如果你看看我們的毛利率，現在 6 到 8 個季度的毛利率一直是 52%。原因是，當我們在銷售成本中從供應商那裡獲得槓桿和採購價格降低時，我們與客戶分享。因此，運營費用是固定的，並且具有槓桿作用。它們會隨著我們的收入上下波動。

Okay. I guess, longer term if you do build up industrial as a percentage, does that require more expenses as far as servicing all the different end markets?

好的。我想，從長遠來看，如果你確實建立了一個百分比的工業，那麼就服務所有不同的終端市場而言，這是否需要更多的費用？

No, that's really good. I mean, organically, couple of things. First of all, industrial margins are comparable, if not higher, at least on the gross margin than our semi. One really good thing is, we've invested in our sales and marketing, infrastructure and industrial. That's with people, that's with filling up the channel. This is with channel management software tools. And those costs are in our P&L. So that's a positive. We made those investments going forward. So organically, our industrial margins, no, they should stay very, very healthy.

不，那真的很好。我的意思是，有機地，有幾件事。首先，工業利潤率與我們的半成品相比，即使不是更高，至少在毛利率上也是可比的。一件非常好的事情是，我們投資於我們的銷售和營銷、基礎設施和工業。這與人有關，與填充渠道有關。這與渠道管理軟件工具有關。這些成本在我們的損益表中。所以這是積極的。我們進行了這些投資。因此，有機地，我們的工業利潤率，不，它們應該保持非常、非常健康。

Thank you. It's looks like we have another question from Krish Sankar. This one is from Bank of America.

謝謝。看起來我們還有一個來自 Krish Sankar 的問題。這個來自美國銀行。

Question for Tom. With your operating margins running at such high levels and -- I understand M&As when we focus on diversifying into industrials rather verticals, is this fair to assume any M&A at this levels is not going to be accretive necessarily for you guys?

湯姆的問題。鑑於你們的營業利潤率處於如此高的水平，而且——我理解當我們專注於多元化進入工業而不是垂直領域時的併購，假設在這個水平上的任何併購都不會對你們產生增長，這是否公平？

Yes. On an operating margin, our M&A would be accretive dollar wise, though not on a percentage wise. When you look at our targets and when you look at what we use as a threshold generally for an operating margin, we look at something in the mid-teens like a 15%, where because they're in our core competency, we can grow it to 20%. There are some targets that are 20% above. But overall, Krish, the way to think about it is M&A is accretive earnings. It's accretive operating margin dollars. But it will be lower percentage wise.

是的。在營業利潤率上，我們的併購將增加美元，但不是百分比。當您查看我們的目標時，當您查看我們通常用作營業利潤率閾值的值時，我們會查看 15% 左右的值，因為它們是我們的核心競爭力，我們可以增長到 20%。有些目標高於 20%。但總的來說，Krish，考慮併購的方式是增加收益。這是增加營業利潤的美元。但它的百分比會更低。

That's all the questions that we have in the queue at this time. So I would like to turn the call back over to management for closing comments.

這就是我們此時隊列中的所有問題。所以我想把電話轉回給管理層以徵求意見。

Thank you, everyone, for joining us today. This is exciting time for AE. We're excited about the quarter. We're excited about the future. And we're excited about the year and next year. Looking forward to seeing you in various events in the upcoming quarter. Thanks a lot.

謝謝大家今天加入我們。這是 AE 激動人心的時刻。我們對這個季度感到興奮。我們對未來感到興奮。我們對今年和明年感到興奮。期待在下一季度的各種活動中見到您。多謝。

Ladies and gentlemen, thank you, again for your participation in today's conference. This now concludes the program, and you may now disconnect at this time. Everyone, have a great day.

女士們，先生們，再次感謝你們參加今天的會議。程序到此結束，此時您可以斷開連接。大家，祝你有美好的一天。