Advanced Energy Industries Inc (AEIS) 2018 Q1 法說會逐字稿

Good day, ladies and gentlemen, and welcome to the Advanced Energy Industries Q1 2018 Earnings Conference Call. (Operator Instructions) I would now like to introduce your host for this conference call, Ms. Rhonda Bennetto, Investor Relations. You may begin, ma'am.

女士們先生們，美好的一天，歡迎來到 Advanced Energy Industries 2018 年第一季度收益電話會議。（操作員說明）現在我想介紹一下本次電話會議的主持人，投資者關係部的 Rhonda Bennetto 女士。你可以開始了，女士。

Thank you, operator. Good morning, everybody. Welcome to Advanced Energy's First Quarter 2018 Earnings Conference Call. With me on today's call are: Yuval Wasserman, President and CEO; and Tom McGimpsey, Executive Vice President, Interim CFO and General Counsel. 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 advanced-energy.com.

謝謝你，運營商。大家早上好。歡迎來到 Advanced Energy 2018 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、臨時首席財務官兼總法律顧問 Tom McGimpsey。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 advanced-energy.com。

Before we begin, let me remind you that today's call contains forward-looking statements, including Advanced Energy's current view of its industry, performance, products, applications and business outlook. These statements 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 contained in Advanced Energy's most recent Form 10-K, Form 10-Q and 8-K filings with the SEC. All forward-looking statements are based on management's estimates, projections and assumptions as of April 30, 2018, and Advanced Energy assumes no obligation to update them.

在我們開始之前，讓我提醒您，今天的電話會議包含前瞻性陳述，包括 Advanced Energy 當前對其行業、性能、產品、應用和業務前景的看法。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包含在 Advanced Energy 最近向美國證券交易委員會提交的 10-K 表格、10-Q 表格和 8-K 表格文件中。所有前瞻性陳述均基於管理層截至 2018 年 4 月 30 日的估計、預測和假設，Advanced Energy 不承擔更新這些陳述的義務。

Guidance will not be updated after today's call until our next scheduled quarterly financial release. Aspirational goals and targets discussed on this conference call or in the presentation material should not be interpreted in any respect as guidance. Today's call also includes non-GAAP adjusted financial measures. Reconciliations to GAAP measures are contained in yesterday's earnings press release and in our reconciliation slides, which are available on the Investor Relations page of our website at advanced-energy.com. We will be referring to earnings slides posted on the Investor Relations section of our website.

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。在本次電話會議或演示材料中討論的理想目標和目標不應在任何方面被解釋為指導。今天的電話會議還包括非 GAAP 調整後的財務措施。與 GAAP 措施的對賬包含在昨天的收益新聞稿和我們的對賬幻燈片中，這些幻燈片可在我們網站 advanced-energy.com 的投資者關係頁面上找到。我們將參考發佈在我們網站投資者關係部分的收益幻燈片。

And finally, Advanced Energy will be presenting at the J.P. Morgan Global Conference in Boston on May 15 as well as the Cowen TMT Conference in New York on May 30th, and finally at the Stifel Cross Sector Conference on June 12th. We look forward to seeing many of you at these key events.

最後，Advanced Energy 將出席 5 月 15 日在波士頓舉行的摩根大通全球會議以及 5 月 30 日在紐約舉行的 Cowen TMT 會議，最後是 6 月 12 日的 Stifel 跨行業會議。我們期待在這些重要活動中見到你們中的許多人。

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, Rhonda. Good morning, everyone, and thank you for joining us for our first quarter earnings conference call.

謝謝你，朗達。大家早上好，感謝您加入我們的第一季度收益電話會議。

The momentum of 2017 carried well into the first quarter, giving us a very solid start to the year. Continued demand for AE's high-performance power solutions in advanced semiconductor applications again grew to record levels. Our expanding industrial business also surged ahead in the first quarter resulting in total revenue growth of 31% and non-GAAP EPS growth of 29% year-over-year. These results demonstrate the solid execution of our growth strategy and our investment and focus on meeting market technology needs through innovation.

2017 年的勢頭一直延續到第一季度，為我們今年開了個好頭。先進半導體應用對 AE 高性能電源解決方案的持續需求再次增長到創紀錄水平。我們不斷擴大的工業業務在第一季度也取得了長足進步，總收入同比增長 31%，非 GAAP 每股收益同比增長 29%。這些結果證明了我們的增長戰略和投資的穩健執行，並專注於通過創新滿足市場技術需求。

In addition to our strong financial performance, we accomplished several key initiatives in the quarter. We completed the acquisition of Trek, adding complementary high-voltage and electrostatic technology products to our Specialty Power products portfolio. This is the second acquisition we have completed during the last 9 months in addition to Excelsys, which we closed in July last year. As part of our general and organic strategy, the Trek position is in line with our roll-up plan in high-voltage technology space joining high-tech power and UltraVolt acquisitions and increasing our SAM in applications such as life science, ion implantation, metrology and analytical equipment.

除了我們強勁的財務業績外，我們在本季度還完成了幾項關鍵舉措。我們完成了對 Trek 的收購，為我們的專業電源產品組合增加了互補的高壓和靜電技術產品。這是我們在過去 9 個月內完成的第二筆收購，除了我們於去年 7 月完成的 Excelsys。作為我們總體和有機戰略的一部分，Trek 職位符合我們在高壓技術領域的匯總計劃，加入高科技電源和 UltraVolt 收購，並增加我們在生命科學、離子注入、計量學等應用中的 SAM和分析設備。

Following a rigorous and disciplined approach, we are pleased with the 6 acquisitions we made during the last few years, as all of them have exhibited significant growth and profitability.

遵循嚴格和紀律嚴明的方法，我們對過去幾年進行的 6 次收購感到滿意，因為它們都顯示出顯著的增長和盈利能力。

In addition and in line with our capital deployment strategy, which is ongoing, year-to-date, we have deployed nearly $28.5 million in share repurchases.

此外，根據我們今年迄今正在進行的資本部署戰略，我們已經部署了近 2850 萬美元的股票回購。

Lastly, and most importantly, we deepened our senior leadership team by hiring Paul Oldham as our new CFO. Paul will play an instrumental role in accelerating AE's growth strategy, and we are excited to have him join us beginning tomorrow.

最後，也是最重要的是，我們通過聘請 Paul Oldham 擔任我們的新首席財務官來深化我們的高級領導團隊。Paul 將在加速 AE 的增長戰略方面發揮重要作用，我們很高興他從明天開始加入我們。

In semiconductors, a booming memory chip market continues to propel the overall wafer fab equipment market forward. And AE is playing a critical role by delivering highly engineered precision power solutions for these new processing tools. Semi revenue has increased 10% sequentially and 30% year-over-year and again reached record levels this quarter. Demand was heavily driven by etch and 3D NAND supported by a strong DRAM investment, which drove the need for front-end processing tool.

在半導體領域，蓬勃發展的存儲芯片市場繼續推動整個晶圓廠設備市場向前發展。AE 通過為這些新的加工工具提供高度工程化的精密電源解決方案發揮著關鍵作用。Semi 收入環比增長 10%，同比增長 30%，本季度再次創下歷史新高。強勁的 DRAM 投資支持的蝕刻和 3D NAND 極大地推動了需求，這推動了對前端處理工具的需求。

Next-generation logic devices also contributed as chip makers migrate towards sub-10 nanometers nodes that required advanced dual and quad patterning. Atop this was a contribution of some of our newer, high-voltage applications for ion implant, metrology and inspection.

隨著芯片製造商向需要高級雙和四圖案化的亞 10 納米節點遷移，下一代邏輯設備也做出了貢獻。最重要的是我們在離子注入、計量和檢測方面的一些較新的高壓應用的貢獻。

And finally, we saw strength at key OEMs from leading edge capacity as well as 200-millimeter. Our ongoing investment and advancements in product research and development reflect our innovative leadership in critical power delivery and control applications, which continue to align with next-generation device manufacturing technology. Our design wins this quarter came primarily from advanced NAND and DRAM applications. With wins in advanced edge applications, our technology leadership outpaced the competition, particularly in our dual frequency matching products. This quarter, we successfully displaced multiple competitors due to our design philosophy, easy integration and best-in-class performance. These products enable demanding plasma processes that require high-speed and advanced dynamic control capability.

最後，我們從領先的產能和 200 毫米中看到了主要原始設備製造商的實力。我們在產品研發方面的持續投資和進步反映了我們在關鍵功率傳輸和控制應用方面的創新領導地位，這些應用繼續與下一代設備製造技術保持一致。我們本季度的設計勝利主要來自先進的 NAND 和 DRAM 應用。憑藉在先進邊緣應用方面的成功，我們的技術領先地位超越了競爭對手，尤其是在我們的雙頻匹配產品方面。本季度，由於我們的設計理念、易於集成和一流的性能，我們成功取代了多個競爭對手。這些產品可實現需要高速和高級動態控制能力的苛刻等離子工藝。

Also, this quarter, our newly acquired products from Trek increase our presence in the high-voltage market for semi applications, including increased content in metrology and ion implantation for advanced logic and DRAM applications.

此外，本季度，我們從 Trek 新收購的產品增加了我們在半應用高壓市場的影響力，包括增加了高級邏輯和 DRAM 應用的計量和離子注入的內容。

As device structures become more and more complex in nature, AE's position as an enabler of our customers' success is clearly becoming even more essential.

隨著設備結構在本質上變得越來越複雜，AE 作為客戶成功推動者的地位顯然變得更加重要。

Our recently introduced eV Source technology, solid-state match and our new remote plasma source are enabling new capabilities for our customers in pursuing future technology nodes.

我們最近推出的 eV 源技術、固態匹配和我們新的遠程等離子源正在為我們的客戶追求未來技術節點提供新的能力。

Looking ahead, we expect to see growth continuing in 3D NAND and DRAM, as the proliferation of cloud edge high-performance computing, AI and the IoT drive increased content in consumer devices and enterprise infrastructure. We anticipate second quarter revenues to remain at or near the first quarter's record level.

展望未來，我們預計 3D NAND 和 DRAM 將繼續增長，因為雲邊緣高性能計算、人工智能和物聯網的激增推動了消費設備和企業基礎設施中內容的增加。我們預計第二季度的收入將保持在或接近第一季度的創紀錄水平。

Our industrial business had an outstanding quarter growing 46% year-over-year and 15% sequentially, clearly demonstrating the very rapid adoption of our advanced technology for the industrial markets. For example, in 2015, we talked about the Ascent DMS advanced bipolar pulsed power technology as a key element of our growth strategy within our thin film industrial markets. Today, our DMS bipolar pulsed DC business has quadrupled year-over-year and contributed to almost half of our successful design wins in high power AC solutions this quarter. This technology is rapidly being adopted throughout many of our thin film industrial markets such as consumer electronics, advanced displays, solar PV cell manufacturing and large area glass markets, both domestically and globally.

我們的工業業務有一個出色的季度，同比增長 46%，環比增長 15%，清楚地表明我們的先進技術在工業市場上的採用非常迅速。例如，在 2015 年，我們談到 Ascent DMS 先進的雙極脈衝功率技術是我們在薄膜工業市場增長戰略的關鍵要素。今天，我們的 DMS 雙極脈衝 DC 業務同比增長了四倍，本季度我們在大功率 AC 解決方案的成功設計中佔了近一半。這項技術正在我們的許多薄膜工業市場迅速採用，例如國內和全球的消費電子產品、高級顯示器、太陽能光伏電池製造和大面積玻璃市場。

Our leading-edge technology enables us to gain design wins, while upholding our market-leading margins.

我們領先的技術使我們能夠贏得設計，同時保持我們市場領先的利潤率。

Revenue from our Specialty Power products improved significantly this quarter due to the expansion of our portfolio of high- and low-voltage power delivery in control solutions into a variety of new and adjacent markets. Our high-voltage power solutions provide stable output with low noise and low ripple in a small form factor, all of which are critical to applications in the materials, lasers, robotics, medical and life science markets.

由於我們將控制解決方案中的高壓和低壓電力傳輸產品組合擴展到各種新的和相鄰的市場，本季度我們特種電源產品的收入顯著增加。我們的高壓電源解決方案以小尺寸提供穩定輸出、低噪聲和低紋波，所有這些對於材料、激光、機器人、醫療和生命科學市場的應用都至關重要。

The expansion of our low-voltage customized power solutions is allowing us to grow our presence in some highly regulated market such as medical instrumentation and defense. And we continue to benefit from the modular high-power density and fan-less solution that have become the standard for many of the markets we serve.

我們低壓定制電源解決方案的擴展使我們能夠在一些高度監管的市場（例如醫療儀器和國防）中擴大我們的影響力。我們繼續受益於模塊化高功率密度和無風扇解決方案，這些解決方案已成為我們所服務的許多市場的標準。

Overall, improvements in the global economy together with our geographic expansion and increased channel partnership should continue to contribute to the global rise in demand we are seeing for our products. Our strategy to diversify, accelerate innovation and add differentiating technologies and products should enable us to penetrate new verticals and expand our presence.

總的來說，全球經濟的改善以及我們的地域擴張和渠道合作夥伴關係的增加，應該會繼續推動全球對我們產品需求的增長。我們多元化、加速創新和增加差異化技術和產品的戰略應該使我們能夠滲透到新的垂直領域並擴大我們的影響力。

During the last 3 years, our industrial products revenue grew by 17% CAGR. AE's industrial design wins are fueling our growth in many diverse verticals. This quarter, we saw very strong performance across a variety of industrial applications. In thin films, we secure design wins and gain share in advanced glass coating applications in Europe and the U.S. We also saw increased activity in consumer electronic coating, as our product support existing customers' ramps and broaden our presence to new users. In flat panel display, we expanded our presence in China with capacity increases as the ramp of mobile OLED continues. And finally, our traction in solar PV cell applications for upgrades and new purchases continued.

在過去 3 年中，我們的工業產品收入以 17% 的複合年增長率增長。AE 的工業設計勝利正在推動我們在許多不同的垂直領域的發展。本季度，我們在各種工業應用中看到了非常強勁的表現。在薄膜方面，我們在歐洲和美國獲得了設計勝利並在先進的玻璃塗層應用中獲得份額。我們還看到消費電子塗層方面的活動有所增加，因為我們的產品支持現有客戶的增長並擴大我們對新用戶的影響力。在平板顯示器方面，隨著移動 OLED 的持續增長，我們擴大了在中國的業務並增加了產能。最後，我們繼續推動太陽能光伏電池應用升級和新採購。

In Specialty Power, we gained share and displaced competitors by winning critical designs as well as with our high-voltage products. We secured wins in high voltage for an electrostatic precipitator application in the laser marking of flat panel display project for traceability.

在特種電源領域，我們通過贏得關鍵設計以及我們的高壓產品贏得了市場份額並取代了競爭對手。我們在平板顯示器激光打標項目中獲得靜電除塵器應用的高電壓勝利，以實現可追溯性。

In thermal, we expanded our Power Control Module market presence by winning additional glass line projects in Europe and Asia. We also further penetrated the material processing market with a furnace heating project for steel, which requires accurate, noncontact temperature measurement.

在熱力方面，我們贏得了歐洲和亞洲的更多玻璃生產線項目，從而擴大了功率控制模塊的市場佔有率。我們還通過鋼鐵爐加熱項目進一步滲透材料加工市場，該項目需要精確的非接觸式溫度測量。

We won these designs due to the modularity and configurability of our product. In low voltage, we secured several designs in the medical laser equipment market due to the small footprint and isolated outputs of our products and because our solutions enable our customers to meet stringent regulatory and compliance standards.

由於我們產品的模塊化和可配置性，我們贏得了這些設計。在低壓方面，由於我們產品的佔地面積小和隔離輸出，以及我們的解決方案使我們的客戶能夠滿足嚴格的監管和合規標準，我們在醫療激光設備市場獲得了多項設計。

We plan to add complementary applications, technology and product lines to our industrial business to expand our reach into new and adjacent verticals.

我們計劃為我們的工業業務添加互補的應用程序、技術和產品線，以將我們的業務範圍擴大到新的和相鄰的垂直領域。

In the second quarter, we expect ongoing strength across thin film and Specialty Power applications, especially consumer electronic products coatings, mobile OLED and high-voltage products. Following a few quarters of accelerated growth in our industrial business, we aspire to increase our CAGR growth target from GDP plus to mid-teens.

在第二季度，我們預計薄膜和特種電源應用將持續走強，尤其是消費電子產品塗層、移動 OLED 和高壓產品。在我們的工業業務經歷了幾個季度的加速增長之後，我們渴望將我們的複合年增長率目標從 GDP 以上提高到十幾歲左右。

The investment we have made in our service business over the last several years were designed to provide a competitive turnaround time and increase our responsiveness as we evolve and grow our service business beyond break fix.

我們在過去幾年中對服務業務進行的投資旨在提供具有競爭力的周轉時間，並隨著我們的服務業務不斷發展和發展，超越故障修復，提高我們的響應能力。

In response to an increase in activity by our customers and OEMs all across Asia, we recently opened our new Singapore repair center. This center gives us greater regional flexibility, improves responsiveness, increases our competitive stance and reduces costs. In particular, we are seeing strong momentum in the non-break fix portion of the business that includes retrofits. While our service revenue increased 19% year-over-year, we saw a sequential pause this quarter due to the timing of some of our refurbishment upgrade and retrofit project wins.

為了響應我們在亞洲各地的客戶和原始設備製造商的活動增加，我們最近開設了新的新加坡維修中心。該中心為我們提供了更大的區域靈活性，提高了響應能力，增強了我們的競爭地位並降低了成本。特別是，我們看到包括改造在內的業務的不間斷修復部分的強勁勢頭。雖然我們的服務收入同比增長 19%，但由於我們贏得了一些翻新升級和改造項目的時間安排，本季度我們出現了連續停頓。

We continue to see momentum in the market adoption of these non-break fix service products and expect to see increased implementation in Q2. Our service strategy continues to prove out and market conditions remains very favorable, as we identify and pursue new opportunities to customize the value we deliver to each of our customers throughout the entire life cycle of the products.

我們繼續看到市場採用這些不間斷修復服務產品的勢頭，並期望在第二季度看到更多的實施。我們的服務戰略繼續得到證明，市場條件仍然非常有利，因為我們發現並尋求新的機會來定制我們在產品的整個生命週期中為每個客戶提供的價值。

For the second quarter, we see service revenue growing in high single digits. We aspire to continue and grow our service business at a double-digit CAGR driven by our growing installed base, gaining repair share, selling value-add service products and replacing our competitors' legacy products in the field.

對於第二季度，我們看到服務收入以高個位數增長。我們渴望繼續並以兩位數的複合年增長率發展我們的服務業務，這得益於我們不斷增長的安裝基礎、獲得維修份額、銷售增值服務產品以及替換我們競爭對手在該領域的遺留產品。

Heading into the second quarter, we remain at historically high levels of semiconductor revenues and expect to see meaningful sequential growth in our industrial business, as we increase our offering and gain share in the markets we serve. The technical synergies we are driving across our different power product lines, the integration of multiple products into enabling solutions and our commitment to continuous innovation is providing the opportunity to diversify and enter new and adjacent markets.

進入第二季度，我們的半導體收入仍處於歷史高位，並且隨著我們增加產品種類並在我們所服務的市場中獲得份額，預計我們的工業業務將實現有意義的連續增長。我們在不同的電源產品線中推動的技術協同效應、將多種產品集成到支持解決方案中以及我們對持續創新的承諾正在為多元化和進入新的相鄰市場提供機會。

Our Q1 performance combined with our Q2 guidance increases our confidence in our progress toward our 3-year aspirational goals of greater than $1 billion in revenue, between $5.50 and $6.50 in non-GAAP EPS and over $550 million in cumulative cash generation.

我們第一季度的業績與第二季度的指導相結合，增強了我們實現 3 年收入超過 10 億美元、非 GAAP 每股收益在 5.50 美元至 6.50 美元之間以及累計產生現金超過 5.5 億美元的理想目標的信心。

With impressive financial performance and a strong balance sheet, we plan to further execute on our capital deployment program, returning value to shareholders. We are encouraged by the number of actionable acquisition targets we have in our pipeline and aspire to close additional deals during 2018.

憑藉令人印象深刻的財務業績和強勁的資產負債表，我們計劃進一步執行我們的資本配置計劃，為股東回報價值。我們對我們在籌備中的可操作收購目標的數量感到鼓舞，並渴望在 2018 年完成更多交易。

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。

With that, let me turn the call over to Tom McGimpsey. Tom?

有了這個，讓我把電話轉給 Tom McGimpsey。湯姆？

Thank you, Yuval. The first quarter was a strong start to 2018 for Advanced Energy. We executed on our strategy to grow both organically and inorganically and reached record highs on the top and bottom line.

謝謝你，尤瓦爾。第一季度是 Advanced Energy 2018 年的一個良好開端。我們執行了有機和無機增長的戰略，並在頂線和底線均創下歷史新高。

Total revenue increased 9% sequentially and 31% year-over-year to $195.6 million. Non-GAAP EPS rose to $1.34 from $1.31 last quarter and $1.04 in the prior year.

總收入環比增長 9%，同比增長 31% 至 1.956 億美元。非 GAAP 每股收益從上一季度的 1.31 美元和去年同期的 1.04 美元上漲至 1.34 美元。

Turning to sales by market. Semiconductor revenue, again, reached a new record of $136 million, up 10.1% from the last quarter and 30% from last year. We continue to see strong demand for our Precision Power Products from ongoing industry momentum and the close correlation of our sales with OEM shipments.

轉向按市場銷售。半導體收入再次創下 1.36 億美元的新紀錄，比上一季度增長 10.1%，比去年增長 30%。從持續的行業發展勢頭以及我們的銷售與 OEM 出貨量的密切相關性來看，我們繼續看到對我們的精密電源產品的強勁需求。

Industrial revenue grew to $35.2 million, up 15% from the fourth quarter and 45.6% from last year. We have increased our industrial revenue both organically and inorganically into new verticals with our highly engineered products. We increased the adoption rate of our advanced technologies and continued to expand our geographic footprint.

工業收入增長至 3520 萬美元，比第四季度增長 15%，比去年增長 45.6%。我們通過高度工程化的產品將我們的工業收入有機地和無機地增加到新的垂直領域。我們提高了先進技術的採用率，並繼續擴大我們的地理足跡。

Service revenue for the quarter came in at $24.4 million, a decrease of 2.5% from a record fourth quarter, but up 18.9% from last year. The sequential decline was due to the timing of installation and delivery and mix of service projects received during the quarter.

本季度服務收入為 2440 萬美元，比創紀錄的第四季度下降 2.5%，但比去年同期增長 18.9%。環比下降是由於安裝和交付的時間安排以及本季度收到的服務項目的組合。

Gross margin for the first quarter was 53%. This compares to 54% in the prior quarter and 52.8% a year ago. As a reminder, in the prior quarter, we were benefited by lower warranty costs, which were unique to the period. GAAP operating expenses for the first quarter increased in support of our strategy to grow and diversify. In addition to the acquisition of Trek, we also invested globally to expand and upgrade our facilities to meet future demand as we continue to penetrate new verticals. Additionally, we decided to expand our performance-based bonus program deeper into the organization. Other factors related to operating expenses include costs associated with the recruitment of our new CFO, higher tax and accounting fees related to U.S. tax reform and seasonally higher stock-based compensation expense. Some of these items are onetime in nature. We expect the successful integration of Excelsys and Trek and other synergies realized from global investments will have a positive impact on our margins going forward.

第一季度的毛利率為 53%。相比之下，上一季度為 54%，一年前為 52.8%。提醒一下，在上一季度，我們受益於較低的保修成本，這在該時期是獨一無二的。第一季度的 GAAP 運營費用有所增加，以支持我們的增長和多元化戰略。除了收購 Trek 之外，我們還在全球範圍內進行投資，以擴大和升級我們的設施，以滿足未來在我們繼續滲透新垂直領域時的需求。此外，我們決定將基於績效的獎金計劃更深入地擴展到組織中。與運營費用相關的其他因素包括與招聘新首席財務官相關的成本、與美國稅制改革相關的更高稅收和會計費用以及季節性更高的股票補償費用。其中一些項目是一次性的。我們預計 Excelsys 和 Trek 的成功整合以及全球投資實現的其他協同效應將對我們未來的利潤率產生積極影響。

Non-GAAP operating expenses in the first quarter were $41 million, or 21% of revenue. This compares to $37.1 million or 20.7% of revenue in the prior quarter and $31.2 million or 20.9% of revenue a year ago, all in line with our business model.

第一季度的非美國通用會計準則運營費用為 4100 萬美元，佔收入的 21%。相比之下，上一季度收入為 3710 萬美元，佔收入的 20.7%，一年前收入為 3120 萬美元，佔收入的 20.9%，均符合我們的商業模式。

As mentioned in our last earnings call, we continue to evaluate our tax estimates during the 12-month measurement period and accordingly recognized an additional $1.9 million related to U.S. tax reform. As a result, the tax rate for the first quarter was higher at 17.4%. We continue to expect our tax rate for 2018 to be in the mid-teens.

正如我們在上一次財報電話會議中提到的，我們在 12 個月的衡量期內繼續評估我們的稅收估算，並相應地確認了與美國稅制改革相關的額外 190 萬美元。因此，第一季度的稅率較高，為 17.4%。我們繼續預計 2018 年的稅率將處於十幾歲左右。

GAAP earnings per share for the first quarter were $1.16 compared to a loss of $0.73 since last quarter and a positive $0.88 last year. Non-GAAP operating margin of 32% drove non-GAAP EPS of $1.34 compared to $1.31 in the fourth quarter and $1.04 a year ago.

第一季度的 GAAP 每股收益為 1.16 美元，而上一季度以來為虧損 0.73 美元，去年為正值 0.88 美元。非 GAAP 營業利潤率為 32%，推動非 GAAP 每股收益為 1.34 美元，而第四季度為 1.31 美元，一年前為 1.04 美元。

Turning to the balance sheet. In the first quarter, we generated $34.9 million of cash from continuing operations, which included an investment of $23 million in net working capital to support operations and ended the quarter with $417.1 million in cash and marketable securities. This quarter, we acquired Trek, strengthening and accelerating our growth in high-voltage applications and repurchased 12.8 million of our stock as part of our capital allocation strategy. We continue to buy back our shares and have deployed a total of $28.5 million for the repurchase of shares year-to-date. As Yuval mentioned, we are making solid progress toward our aspirational goals. Our growth strategy is working. And with our healthy balance sheet, we will continue to execute on our strategic plan creating value for shareholders.

轉向資產負債表。第一季度，我們從持續經營中產生了 3,490 萬美元現金，其中包括用於支持運營的 2,300 萬美元淨營運資本投資，並在本季度末產生了 4.171 億美元現金和有價證券。本季度，我們收購了 Trek，加強並加速了我們在高壓應用領域的增長，並回購了 1280 萬美元的股票，作為我們資本配置戰略的一部分。我們繼續回購我們的股票，今年迄今已部署總計 2850 萬美元用於回購股票。正如 Yuval 提到的，我們正在朝著我們的理想目標邁進。我們的增長戰略正在奏效。憑藉我們健康的資產負債表，我們將繼續執行為股東創造價值的戰略計劃。

I would also like to welcome Paul Oldham to our team. It's been my pleasure to act as interim CFO, and I look forward to working with Paul to ensure a smooth transition.

我還要歡迎 Paul Oldham 加入我們的團隊。我很高興擔任臨時首席財務官，我期待與保羅合作以確保平穩過渡。

With that, let me turn it over to the operator for questions. Operator?

有了這個，讓我把它交給接線員提問。操作員？

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

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

I want to dig in a little on the design when you talked about on the NAND and the DRAM side. And really just curious if at this point, the growth you're seeing in that space is coming from unit growth or content increasing -- increases for the power supplies on the systems?

當你談到 NAND 和 DRAM 方面時，我想深入了解一下設計。真的很好奇，在這一點上，您在該領域看到的增長是否來自單位增長或內容增加——系統電源的增加？

I think it's a combination of all the above, Tom. Our design wins normally will go to high-volume manufacturing within 18 to 24 months from now. So a lot of the design win activities is for next-generation devices. As we talk about the adoption of technology by the market after we qualify our product at our customers, they go and qualify their products with the end-use customers. So there is a process of adoption and evaluation. So some of these design wins will be in high-volume manufacturing in the future. But again, it's driven by next-generation technology, next-generation devices, both in memory and logic.

我認為這是上述所有因素的結合，湯姆。我們的設計勝利通常會在 18 到 24 個月內進入大批量生產。所以很多設計獲勝活動都是針對下一代設備的。當我們談論在我們的客戶對我們的產品進行認證後市場對技術的採用時，他們會去與最終用戶一起認證他們的產品。所以有一個採納和評估的過程。因此，其中一些設計勝利將在未來進行大批量生產。但同樣，它是由下一代技術、下一代設備驅動的，包括內存和邏輯。

So when you look at the changing contents, the increasing capital intensity of power supplies and matching units on these systems over time, have we -- do you feel like you've saturated the market? Or is there still plenty of content growth to go with the next-generation edge tool versus the last-generation edge tool?

因此，當你看到不斷變化的內容，隨著時間的推移，這些系統上電源和匹配單元的資本密集度不斷增加時，你是否覺得你已經飽和了市場？或者與上一代邊緣工具相比，下一代邊緣工具是否仍有大量內容增長？

I think there is more room to grow in content both in terms of the number of power supplies for chamber, but also the complexity of the power supplies and the adjacent accessories like RF matching networks. These power supplies and matching networks becomes more complex in terms of their capability to drive high-speed controls and adaptive control as the complexity of device drives very, very complex process schemes and these processes require a different level of performance from the power distribution network.

我認為，無論是在暗室電源的數量方面，還是在電源的複雜性和射頻匹配網絡等相鄰附件的複雜性方面，內容都有更大的增長空間。這些電源和匹配網絡在驅動高速控制和自適應控制的能力方面變得更加複雜，因為設備的複雜性驅動非常非常複雜的過程方案，而這些過程需要與配電網絡不同的性能水平。

Okay. So in a market where the number of edge systems perhaps stays stable over time, you think you could still grow in that space?

好的。因此，在邊緣系統的數量可能隨著時間的推移保持穩定的市場中，您認為您仍然可以在該領域增長嗎？

We believe so.

我們相信如此。

Okay. And then just a quick follow-up on the service. The service business, is this normal seasonality? Or is it more of a project-based dip that you saw in the quarter?

好的。然後只是對服務的快速跟進。服務行業，這是正常的季節性嗎？還是您在本季度看到的更多是基於項目的下降？

We don't believe it's seasonality because we know specifically what drove the dynamic in the quarter. We have won a few upgrade and retrofit business deals. We have booked those deals, but the customers requested the implementation of those upgrades and retrofits in Q2. So what happened is, the revenue that we basically booked in Q1 will be delivered in Q2. And we're not concerned about that. We have strong backlog, and we expect our service of business to continue to grow as we expand our offerings, we gain share in our repair centers around the world and displace orphan competitors' products in the field.

我們不認為這是季節性的，因為我們知道具體是什麼推動了本季度的動態。我們贏得了一些升級和改造業務交易。我們已經預訂了這些交易，但客戶要求在第二季度實施這些升級和改造。所以發生的事情是，我們基本上在第一季度預訂的收入將在第二季度交付。我們對此並不擔心。我們有大量積壓，我們希望我們的業務服務隨著我們擴大我們的產品而繼續增長，我們在世界各地的維修中心獲得份額，並在該領域取代孤兒競爭對手的產品。

Our next question comes from Edwin Mok with Needham & Company.

我們的下一個問題來自 Edwin Mok 和 Needham & Company。

So first, just housekeeping. How much did Trek add to this quarter and to your guidance? And all -- is all those sales going to industrial? Or part of it into semi?

所以首先，只是客房服務。Trek 為本季度和您的指導增加了多少？所有這些銷售都用於工業嗎？還是一部分變成semi？

Edwin, it's Tom McGimpsey. I think you can look at Trek adding greater than $20 million on an annual run rate. So in Q1, we did have about $4 million that was added in revenue. And we did actually beat -- we were above guidance without Trek. As you recall, our midpoint was 188 and we actually finished at 191-plus without Trek. So hopefully, that's helpful.

埃德溫，我是湯姆·麥金普西。我想你可以看看 Trek 的年運行率增加超過 2000 萬美元。所以在第一季度，我們確實增加了大約 400 萬美元的收入。我們確實擊敗了——沒有 Trek 的情況下我們超出了指導。您還記得，我們的中點是 188，實際上我們在沒有 Trek 的情況下完成了 191 以上。希望這會有所幫助。

Great. And then, let's focus on semi. I think you voiced that the second quarter you expect demand to relatively stable. And I think, Tom, you said that your business generally track customers' shipment now. Based on that, how do you guys think about the second half of the year? It sounds like some of the concern in the second half might -- we may have some, call, software shipment at your customer OEM side?

偉大的。然後，讓我們關注半。我認為您表示您預計第二季度需求將相對穩定。我想，湯姆，你說你的公司現在通常跟踪客戶的發貨。基於此，你們如何看待下半年？這聽起來像是下半年的一些擔憂——我們可能會在您的客戶 OEM 方面進行一些軟件發貨？

So Edwin, it's a great question. So as we look at our -- the market right now from our vantage point, it's kind of in flex, it's kind of dynamic. We have recent news about some delays in the Intel high-volume manufacturing, TSMC, time of investment and Samsung is still quiet about what their plans are. We, right now from our vantage point, assume that the second half will be flattish to the first half. That's our current assumption. But I think the most important thing, and we believe that the underlying demand for the market is continuing to be strong. We believe that the growth in the market will continue within -- into 2019. And that's our working assumption. We -- as we said in the past, we may see quarter-by-quarter bumps or flatness before resurgence of growth. But the underlying demand is still there, driven by the adoption of edge computing, AI, IoT, and we see that demand continuing into the future. So if the market takes a breather for adoption and installation of capacity, that's fine. We're in a very strong position. We continue to grow both organically and inorganically. Some of the acquired entities we have added to our portfolio participate also in semi. For example, a portion of the Trek business serves the high-voltage semi market with new applications we never had before. So we're encouraged about the future.

所以埃德溫，這是一個很好的問題。因此，當我們從我們的有利位置審視我們的市場時，它有點靈活，有點動態。我們最近有消息稱，英特爾大批量製造、台積電、投資時間和三星方面的一些延遲仍然對他們的計劃保持沉默。我們現在從有利的角度假設下半場將與上半場持平。這是我們目前的假設。但我認為最重要的是，我們相信市場的潛在需求將繼續保持強勁。我們相信市場的增長將持續到 2019 年。這就是我們的工作假設。我們 - 正如我們過去所說，在增長復甦之前，我們可能會看到逐季的顛簸或持平。但在邊緣計算、人工智能、物聯網的採用的推動下，潛在需求仍然存在，我們認為這種需求將持續到未來。因此，如果市場在容量的採用和安裝方面稍作喘息，那很好。我們處於非常有利的地位。我們繼續有機和無機地發展。我們添加到我們的投資組合中的一些收購實體也參與了 semi。例如，Trek 的一部分業務以我們以前從未有過的新應用服務於高壓半導體市場。所以我們對未來感到鼓舞。

Okay, great. That's great color there. Moving on the industrial, it looks like you guys are continuing growing quite well there. I remember last year, part of the growth came from this kind of consumer electronic win that you guys -- wins that you guys have talked about, right? And I think historically, we talk -- also talk about that being a little more lumpy, right? Are we seeing more broadening now? And that gives you the confidence now that you can raise your target to kind of grow in the mid-teens rather than GDP plus?

好的，太好了。那裡的顏色很棒。在工業方面，看起來你們在那裡繼續發展得很好。我記得去年，部分增長來自你們這種消費電子產品的勝利——你們談論過的勝利，對吧？而且我認為從歷史上看，我們談論 - 也談論它有點多塊，對吧？我們現在看到更廣泛了嗎？這讓您現在有信心可以將目標提高到 15 歲左右而不是 GDP 增長？

So Edwin, were you asking about consumer electronic products? I'm sorry, I didn't understand -- I didn't hear the whole question.

Edwin，你問的是消費電子產品嗎？對不起，我沒聽懂——我沒聽清整個問題。

Yes. Sorry, I guess, two-part questions. First is, consumer electronic kind of win that you guys have when considering electronic coatings, right? Is that still going to be kind of lumpy, strong in 2Q and then maybe kind of pull back? And then, the second thing regarding comp, just starting broadening of the product offering, how concentrated your cell is now in the -- I guess, in this group versus it was partially a year before that?

是的。抱歉，我想，問題分為兩部分。首先是，你們在考慮電子塗層時獲得了消費電子類的勝利，對吧？第二季度是否仍然會有點起伏、強勁，然後可能會回調？然後，關於 comp 的第二件事，只是開始擴大產品範圍，你的細胞現在有多集中——我猜，在這個群體中與一年前的部分相比？

Sure. Very, very good question. So Edwin, in general, our industrial business comprising of multiple slivers that are niche market that all of them are lumpy. The good news is that when you combine all of them together, we continue to see growth. Now more specifically about the consumer electronic products, coating applications, we're very excited about that. Granted, it is a lumpy like any other capital investment required for adding capacity to the market. This business is driven not only by capacity, but also next-generation highly engineered materials that are being used for various consumer electronic products. So we see investment in capital equipment driven by capacity, but also driven by new materials that are implemented to these devices. More so, we're excited about the fact that we are expanding our presence to new customers we haven't served before in that specific application space. So the growth is capacity, new engineered materials and broadening our footprint both geographically but with new customers that serve different consumer electronic products. I hope that helps.

當然。非常非常好的問題。所以埃德溫，總的來說，我們的工業業務由多個條子組成，這些條子是利基市場，所有這些條子都是塊狀的。好消息是，當你將所有這些結合在一起時，我們會繼續看到增長。現在更具體地說是關於消費電子產品、塗層應用，我們對此感到非常興奮。誠然，它與為市場增加容量所需的任何其他資本投資一樣是塊狀的。該業務的推動力不僅在於產能，還在於用於各種消費電子產品的下一代高度工程化材料。因此，我們看到對資本設備的投資由產能驅動，但也由用於這些設備的新材料驅動。更重要的是，我們很高興我們正在將我們的業務擴展到我們以前沒有在特定應用程序領域服務過的新客戶。因此，增長是產能、新工程材料和擴大我們在地理上的足跡，以及服務於不同消費電子產品的新客戶。我希望這有幫助。

Okay, great. One last question. Tom, you mentioned that there is some increase in costs or OpEx in your model. So as a result, I think the Q2 guidance at least in the midpoint of the range is down around 100 basis points from what you guys last quarter. But you also mentioned that there is some costs that you expect to improve as you integrate some of these acquisitions. How do you think about long-term margin model? Is this 31% to 33% now the new range? Or how do you think about that?

好的，太好了。最後一個問題。湯姆，您提到您的模型中的成本或運營支出有所增加。因此，我認為第二季度的指導至少在範圍的中點，比你們上個季度下降了大約 100 個基點。但你也提到，在整合其中一些收購時，你希望降低一些成本。您如何看待長期保證金模型？31% 到 33% 現在是新範圍嗎？或者你怎麼看？

Yes it is, Edwin. And we do continue to expect 52% to 54% range for gross margins. And as you outlined for non -- basically operating margins, non-GAAP 31% to 33%, we've invested in the business. We've invested in R&D. We've invested in our employees through certainly our performance-based plan. And so I think we're pretty excited about it. And so you can see us as a percent of revenue or non-GAAP operating expenses being around the low-teens around -- I'm sorry, low-20s, around 21%, very consistent with our better business model.

是的，埃德溫。我們確實繼續預計毛利率在 52% 至 54% 的範圍內。正如你所概述的非——基本上是營業利潤率，非 GAAP 31% 到 33%，我們已經投資了這項業務。我們投資於研發。我們通過基於績效的計劃對員工進行了投資。所以我認為我們對此感到非常興奮。因此，您可以看到我們佔收入或非 GAAP 運營費用的百分比大約在十幾歲左右——對不起，20 多歲左右，大約 21%，這與我們更好的商業模式非常一致。

The next question comes from Pavel Molchanov with Raymond James.

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

In the slides, you, I think for the second quarter in a row, identified solar cell capacity build out as one of the industrial drivers. And given that we're now about 4 months into this Section 201 Tariff and more announcements about fab newbuild in the U.S. announced by a number of OEMs, I'm curious kind of to what extent that is you're seeing that as a source of order uplift?

在幻燈片中，我認為您連續第二個季度將太陽能電池產能建設確定為工業驅動因素之一。鑑於我們現在已經進入 201 節關稅大約 4 個月，並且許多原始設備製造商宣布了更多關於美國工廠新建的公告，我很好奇你在多大程度上將其視為來源訂單提升？

Pavel, we're very excited about our presence in the manufacturing of solar cells. We have enjoyed significant growth and revenue coming from capacity adds and new technology adds in China. We see additional opportunity coming from the rest of the world based on the changes in the regulations as you basically alluded to. And we continue to see the PV solar manufacturing market as a market that will allow us to continue to have sustainable business and potential growth, very, very constructive on PV solar.

帕維爾，我們對我們在太陽能電池製造領域的存在感到非常興奮。我們在中國的產能增加和新技術增加帶來了顯著的增長和收入。正如您基本上提到的那樣，根據法規的變化，我們看到來自世界其他地區的更多機會。我們繼續將光伏太陽能製造市場視為一個市場，它將使我們能夠繼續擁有可持續的業務和潛在的增長，對光伏太陽能非常非常有建設性。

Okay. And as return of capital, I think it was maybe 2 years ago or 3 years ago you outlined kind of 30% buybacks, 70% M&A allocation for using your free cash flow. And given the time that's passed, I'm curious is that still in your eyes the -- kind of the right split, because it certainly seems like buyback has been more noticeable in your capital allocation of late. So is it still 30-70 that you're sticking with?

好的。作為資本回報，我認為可能是在 2 年前或 3 年前，您概述了 30% 的回購，70% 的併購分配用於使用您的自由現金流。考慮到已經過去的時間，我很好奇在你眼中仍然是——一種正確的分裂，因為在你最近的資本配置中，回購似乎更為明顯。那麼您仍然堅持使用 30-70 嗎？

Pavel, in general, yes. Obviously, we continued every quarter. We evaluate our strategy. And we said historically that long term we see it's a 70-30 percent split. However, we're being very cognizant of the changes in the market. We can apply opportunistic decisions when we need to. And we do have a very active pipeline of acquisitions. So all of the above influences what we are doing. But just a reminder, Pavel, since the inception of our plan, we have spent $108.5 million in shares repurchase. Year-to-date, we spent $28.5 million in shares repurchase, including to 2 acquisitions, rather smaller ones, but 2 acquisitions during the last 9 months, and we expect to see more acquisitions happen this year. So obviously, we have the guideline that helps us make our strategic decisions. But we have to be cognizant of the dynamic in the market, and we make decisions as the market dynamic changes.

帕維爾，總的來說，是的。顯然，我們每個季度都在繼續。我們評估我們的策略。我們從歷史上說，從長遠來看，我們看到它是 70-30% 的分裂。但是，我們非常了解市場的變化。我們可以在需要時應用機會主義決策。我們確實有非常活躍的收購渠道。因此，以上所有因素都會影響我們正在做的事情。但提醒一下，帕維爾，自從我們的計劃開始以來，我們已經花費了 1.085 億美元用於股票回購。年初至今，我們在股票回購上花費了 2850 萬美元，包括 2 次收購，規模較小，但在過去 9 個月內進行了 2 次收購，我們預計今年會發生更多收購。很明顯，我們有幫助我們做出戰略決策的指導方針。但我們必須了解市場的動態，並隨著市場動態的變化做出決策。

Our next question comes from Amanda Scarnati with Citi.

我們的下一個問題來自花旗銀行的 Amanda Scarnati。

Just a quick question on your content in DRAM versus NAND. Some of your customers have been talking about, there's been this shift from NAND to DRAM in shipment towards the end of the quarter. And how does that impact your growth going forward if DRAM is significantly stronger?

只是一個關於 DRAM 和 NAND 內容的快速問題。您的一些客戶一直在談論，到本季度末出貨量已經從 NAND 轉向 DRAM。如果 DRAM 明顯更強大，這將如何影響您未來的增長？

Thanks for the question, Amanda. Obviously, there is a difference in content of the actual wafer fab equipment between logic and memory and between 3D NAND and DRAM. And our customers' presence in those applications or devices is different and our presence within our customers' equipment is different. So it is complex puzzle of looking at all the drivers in the content. However, the one thing that is interesting for us is the migration to DRAM increases the FEP content of the wafer fab equipment, the front-end processing equipment. For example, you'll see a higher content driven by ion implantation, you see higher content in RTP, in some cases higher content in metrology. Luckily, these are markets that we have really strong presence through our high-voltage power supplies. We are a critical supplier for both ion implantation and metrology and inspection tools. But also, DRAM drives growth in a process called RTP, rapid thermal processing, where we have a really extremely high market share when it comes to temperature measurement and control. So the migration to DRAM in addition to our historical content in deposition, etch, et cetera, has an increasing strength and growth in our high-voltage business and our Sekidenko pyrometry business.

謝謝你的問題，阿曼達。很明顯，邏輯和內存、3D NAND和DRAM在實際晶圓廠設備內容上是有區別的。我們客戶在這些應用程序或設備中的存在是不同的，我們在客戶設備中的存在也是不同的。因此，查看內容中的所有驅動程序是一個複雜的難題。然而，我們感興趣的一件事是向 DRAM 的遷移增加了晶圓廠設備（前端處理設備）的 FEP 含量。例如，您會看到離子注入驅動的更高含量，RTP 中的含量更高，在某些情況下計量學中的含量更高。幸運的是，我們通過高壓電源在這些市場上擁有非常強大的影響力。我們是離子注入以及計量和檢測工具的重要供應商。而且，DRAM 還推動了稱為 RTP（快速熱處理）的工藝的增長，我們在溫度測量和控制方面擁有非常高的市場份額。因此，除了我們在沉積、蝕刻等方面的歷史內容外，向 DRAM 的遷移在我們的高壓業務和 Sekidenko 高溫測量業務中具有越來越強的實力和增長。

All right. And then, can you just remind us what your market share is in conductor versus dielectric etch? And if you're starting to see any more competition on the conductor etch side and its fragment that you mentioned for 18 to 24 months out?

好的。然後，您能否提醒我們您在導體與電介質蝕刻方面的市場份額是多少？如果您在 18 到 24 個月後開始看到您提到的導體蝕刻方面及其碎片的更多競爭？

We don't disclose our market share by application. And when it comes to market share, well, the one thing we all need to remember that with the complex environment we play in, we have different shares and different content and different end-use customer -- I mean OEM customer. And they have different content and different presence in their end-use customers. At the bottom line, we're not concerned about small short-term changes based on revenue distribution. The bottom line is Advanced Energy is undisputed leader in power supplies and power conversion solutions for the semiconductor industry by far leading with -- leading technology, leading product, leading presence and that explains why we have leading financial performance. We are an enabler and continue to be so across multiple applications, world regions and customers. So we -- the change in mix driven by devices change or customer change or end-user change may be looked as a change in share. We are excited about our position. We are excited about being the leader. And based on what coming down the pipeline in terms of next-generation technology, we are excited about the opportunity to even increase our share.

我們不會通過申請披露我們的市場份額。當談到市場份額時，我們都需要記住的一件事是，在我們所處的複雜環境中，我們擁有不同的份額、不同的內容和不同的最終使用客戶——我的意思是 OEM 客戶。他們在最終使用客戶中有不同的內容和不同的存在。歸根結底，我們並不擔心基於收入分配的短期小變化。最重要的是，Advanced Energy 是半導體行業電源和電源轉換解決方案領域無可爭議的領導者，憑藉領先的技術、領先的產品、領先的影響力遙遙領先，這也解釋了為什麼我們擁有領先的財務業績。我們是一個推動者，並將繼續在多個應用程序、世界區域和客戶中發揮作用。所以我們 - 由設備變化或客戶變化或最終用戶變化驅動的組合變化可能被視為份額變化。我們對我們的地位感到興奮。我們很高興成為領導者。基於下一代技術的發展，我們很高興有機會增加我們的份額。

Our next question comes from Patrick Ho with Stifel.

我們的下一個問題來自 Stifel 的 Patrick Ho。

This is Brian Chin on for Patrick. I guess, my first question is, just looking at your revenue guidance for the second quarter, typically, you've given $10 million range in the past. This time, it's $15 million. Maybe not anything to read into there, but just curious if there's anything behind the wire than typical guidance range. Is it a reflection of perhaps timing of shipments into either the semi or industrial markets?

我是帕特里克的 Brian Chin。我想，我的第一個問題是，看看你第二季度的收入指導，通常，你過去給出了 1000 萬美元的範圍。這次是 1500 萬美元。也許那裡沒有什麼可讀的，但只是好奇電線後面是否有典型指導範圍之外的東西。這是否反映了向半成品或工業市場的出貨時間？

It's a reflection of benchmarking. We constantly look at the guidance provided by our peer group players. And we have noticed that peer group players offer plus/minus 7%, and we adopted that as a best practice.

這是基準測試的反映。我們不斷地查看我們的同行組參與者提供的指導。我們注意到同行組玩家提供正/負 7%，我們將其作為最佳實踐採用。

Got it. Okay. And there is the EPS range still kind of a tight $0.10...

知道了。好的。而且 EPS 範圍仍然有點窄 0.10 美元......

Yes, we remain -- yes, yes.

是的，我們仍然存在——是的，是的。

Okay. Fair enough. Also, looking at your filing that you just put out in conjunction with the results, your top customer was up pretty significantly Q-on-Q, a couple multiples above your growth rate in semis. Just curious if you'd attribute that outgrowth to being driven perhaps by share gains in semi process power, perhaps penetration of some of your high-voltage products that you referenced? Or if it's more just indicative of perhaps the customers' baseline shipment strength?

好的。很公平。此外，看看你剛剛與結果一起提交的文件，你的頂級客戶 Q-on-Q 增長非常顯著，比你在半決賽中的增長率高出幾倍。只是好奇您是否將這種增長歸因於半加工功率的份額增長，或者您提到的某些高壓產品的滲透？或者，如果它更只是表明客戶的基準裝運強度？

Okay. It's a great question. So the growth we've seen with our biggest customer and since this is public information, we're not afraid of sharing that. We have grown 28% year-over-year and 18% quarter-by-quarter. Now it's a combination of multiple things: number one, product mix; number two, increase in high-voltage content; and also the addition of Trek. Trek has brought us an incremental revenue that goes into semi. About 60% of Trek revenue is coming from semi applications. So all of the above, organic growth, inorganic growth, product mix and obviously we have a higher content with our largest customer simply because of the fact that they have very broad base of equipment content, different than others.

好的。這是一個很好的問題。所以我們看到我們最大客戶的增長，因為這是公共信息，我們不怕分享。我們同比增長 28%，環比增長 18%。現在它是多種因素的結合：第一，產品組合；第二，增加高壓含量；以及 Trek 的加入。Trek 為我們帶來了半成品的增量收入。大約 60% 的 Trek 收入來自半成品應用。因此，所有上述有機增長、無機增長、產品組合，顯然我們對最大客戶的滿意度更高，僅僅是因為他們擁有非常廣泛的設備內容基礎，與其他客戶不同。

Okay. Very helpful. I guess one last question. Just going back to some of the discussion on the industrial segment, clearly a lot of strength there. Again, you built backlog overall in the business in Q1. Just kind of curious, I did notice a bit of maybe a revenue bias or shift towards Europe in particular, maybe you can flesh that out a little bit and just kind of dissect a little bit what's going on there? And also, whether -- I think you mentioned late last year a little bit of digestion in some of the glass coating lines that added capacity in China, and just whether your -- that digestion is -- you've moved past that in that market too?

好的。很有幫助。我想最後一個問題。回到關於工業領域的一些討論，顯然那裡有很多力量。同樣，您在第一季度的業務中建立了整體積壓。只是有點好奇，我確實注意到了一些收入偏差或特別是向歐洲的轉移，也許你可以充實一點，稍微剖析一下那裡發生了什麼？而且，我認為你是否在去年年底提到了一些增加中國產能的玻璃鍍膜生產線的消化，以及你的 - 這種消化是否 - 你已經超越了那個市場也是？

So in general, if you look at the thin film industrial business, it is a lumpy business. And we see a lot of changes in ebbs and flows between various regions and the market. If you look at the general dynamic of this market, periodically we saw investment in greenfield glass coating lines that served us with basically installation of new factories. In some other periods, we saw upgrades of retrofits driving more of the business. Also, it's very regional. And there are players both in Asia and in Europe when it comes to the glass coating, and for that matter even flat panel display business. And we see periodical shift between Europe and Asia when it comes to the adoption of these capital equipment pieces in the world. So you should expect to see lumpiness when it comes to what we called a large area deposition market. And it could be either glass coating or the flat panel display large TV-type implementation or investments. The things that we're encouraged about is that the adoption of the handheld devices OLED, flat panel displays is exciting for us because it's continuing regardless of the dynamic of the flat-panel TVs, for example. So we see continuing investment in this area driven by volume and adoption of OLED to handheld devices and that added to some of our growth recently. In general, as we said earlier, it will be lumpy, and it will be both seasonal and regional. The good news is we are a strong player in these markets, specially in the deposition side and continue to serve the market both in Europe and in Asia, including Korea, China.

所以總的來說，如果你看一下薄膜工業業務，這是一個起伏不定的業務。我們看到各個地區和市場之間的潮起潮落髮生了很多變化。如果你看一下這個市場的總體動態，我們會定期看到對新建玻璃鍍膜生產線的投資，這些生產線基本上為我們提供了新工廠的安裝服務。在其他一些時期，我們看到改造升級推動了更多業務。此外，它非常具有區域性。在玻璃鍍膜方面，亞洲和歐洲都有參與者，就此而言，甚至還有平板顯示器業務。當談到在世界上採用這些資本設備時，我們看到歐洲和亞洲之間的周期性轉變。因此，當涉及到我們所謂的大面積沉積市場時，您應該預料到會出現波動。它可以是玻璃塗層或平板顯示器大型電視類型的實施或投資。讓我們感到鼓舞的是，手持設備 OLED、平板顯示器的採用對我們來說是令人興奮的，因為無論平板電視的動態如何，它都在繼續。因此，我們看到在手持設備中 OLED 的數量和採用推動了這一領域的持續投資，這增加了我們最近的一些增長。一般來說，就像我們前面說的，它會呈塊狀，而且會具有季節性和區域性。好消息是我們是這些市場的強大參與者，特別是在沉積方面，並繼續服務於歐洲和亞洲市場，包括韓國、中國。

(Operator Instructions) And I'm not showing any further questions at this time. I'd like to turn the call back over to management for closing remarks.

（操作員說明）此時我不會再提出任何其他問題。我想將電話轉回管理層以作結束語。

Thanks, everybody, for joining us. We had a strong quarter. We have a fantastic performance against our aspirational goals. We feel very comfortable and confident with our program in progress. As I mentioned earlier, since inception, we have deployed $108.5 million in share repurchase, returning value to our shareholders. And we continue to increase the cadence of acquisitions, and looking forward to seeing many of you during the next quarter. Thank you so much.

謝謝大家加入我們。我們有一個強勁的季度。我們在實現理想目標方面取得了出色的表現。我們對正在進行的計劃感到非常滿意和自信。正如我之前提到的，自成立以來，我們已經部署了 1.085 億美元的股票回購，為我們的股東帶來回報。我們繼續增加收購的節奏，並期待在下個季度見到你們中的許多人。太感謝了。

Ladies and gentlemen, this does conclude today's presentation. You may now disconnect, and have a wonderful day.

女士們，先生們，今天的演講到此結束。您現在可以斷開連接，並度過美好的一天。