Advanced Energy Industries Inc (AEIS) 2018 Q2 法說會逐字稿

Good day, ladies and gentlemen, and welcome to the Advanced Energy's Second Quarter 2018 Earnings Conference Call. (Operator Instructions) As a reminder, this conference call is being recorded.

女士們先生們，美好的一天，歡迎來到 Advanced Energy 2018 年第二季度收益電話會議。（操作員說明）作為提醒，正在錄製此電話會議。

I would now like to turn the conference over to Rhonda Bennetto. You may begin.

我現在想將會議轉交給 Rhonda Bennetto。你可以開始了。

Thank you, operator. Good morning, everyone. Welcome to Advanced Energy's Second Quarter 2018 Earnings Conference Call. With me on today's call are Yuval Wasserman, President and CEO; and Paul Oldham, Executive VP and CFO.

謝謝你，運營商。大家，早安。歡迎來到 Advanced Energy 2018 年第二季度收益電話會議。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 Paul Oldham。

By now, you should have received a copy of the earnings release that was issued yesterday afternoon. For a copy of the release, please visit our website, www.advancedenergy.com.

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。如需新聞稿副本，請訪問我們的網站 www.advancedenergy.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 June 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 6 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 release and in our reconciliation slides, which are available on the Investor Relations page of our website. We'll be referring to earnings slides posted on the Investor Relations section of our website as well.

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發布和我們的對賬幻燈片中，這些幻燈片可在我們網站的投資者關係頁面上找到。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 finally, Advanced Energy will be presenting at the D.A. Davidson Technology Forum on August 9 in New York, at the Jeffries Semiconductor and Hardware Summit in Chicago on August 29 and at the Citi Global Technology Conference in New York on September 5. We look forward to seeing many of you at these events.

最後，Advanced Energy 將出席 D.A. 8 月 9 日在紐約舉行的戴維森技術論壇，8 月 29 日在芝加哥舉行的 Jeffries 半導體和硬件峰會以及 9 月 5 日在紐約舉行的花旗全球技術大會。我們期待在這些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 second quarter earnings conference call. Revenues maintained record levels for Advanced Energy this quarter against a backdrop or short-term pushouts by some semiconductor manufacturers. At $196 million, revenues were up slightly from the first quarter and grew 18% year-over-year. Strong growth and record revenues from our industrial products and service offerings offset modest declines in our semiconductor markets, demonstrating the value of our diversification strategy. Our institution of this strategy continues with our announcement yesterday of an agreement to acquire LumaSense Technologies, a leader in photonic-based measurement technologies for power-incentive (sic) [power-intensive] applications. This acquisition will be highly synergistic with AE's precision power control technologies in both semiconductor and largely industrial markets.

謝謝你，朗達。大家早上好，感謝您加入我們的第二季度收益電話會議。在一些半導體製造商短期推出的背景下，本季度 Advanced Energy 的收入保持了創紀錄的水平。收入為 1.96 億美元，較第一季度略有增長，同比增長 18%。我們的工業產品和服務產品的強勁增長和創紀錄的收入抵消了我們半導體市場的適度下滑，證明了我們多元化戰略的價值。我們繼續實施這一戰略，昨天我們宣布了一項收購 LumaSense Technologies 的協議，LumaSense Technologies 是用於功率激勵 (sic) [功率密集型] 應用的基於光子的測量技術的領導者。此次收購將與 AE 在半導體和主要工業市場的精密功率控制技術高度協同。

For the quarter, our financial results were solid. We generated $53 million in operating cash, and we spent $25 million on our share purchase program. We also strengthened our management team this quarter with the key additions of Paul Oldham as CFO; Niel Brinker as COO; Isabel Yang as our new CTO and Tina Donikowski as a new board member. They bring incredible knowledge and experience to AE, and we are excited to have them join the team and help drive our growth and diversification strategy.

本季度，我們的財務業績穩健。我們產生了 5300 萬美元的運營現金，並在我們的股票購買計劃上花費了 2500 萬美元。本季度我們還加強了我們的管理團隊，主要增加了 Paul Oldham 作為首席財務官； Niel Brinker 擔任首席運營官； Isabel Yang 擔任我們的新 CTO，Tina Donikowski 擔任新董事會成員。他們為 AE 帶來了令人難以置信的知識和經驗，我們很高興他們加入團隊並幫助推動我們的增長和多元化戰略。

Beginning with semiconductors, the second quarter market changed in near-term outlook by some end customers, which began to trickle down through the equipment and critical component manufacturers. The mid-quarter announcement of delays in memory expansion for 3D NAND and DRAM by one of the large semiconductor manufacturers had a significant impact on some of the AE OEM customers, and as a result, affected AE's semiconductor business. We began to see the effect of this delay in investment in the latter half of the second quarter. As a result, semi revenues declined sequentially coming off the record highs achieved in the first quarter. In addition, we are seeing modest delays in other semiconductor manufacturers related to yield and timing of high-volume production, but expect this impact to be more muted. We expect these trends to impact the second half. Despite the near-term pause, we believe that the long-term multi-year industry trends are intact and see this delay in investment as temporary. Continued investment in next-generation nodes help the overall demand trends in both DRAM and 3D NAND and long-term demand for semiconductors driven by Big Data for AI, IoT and other data-driven applications, while continue to drive growth in our industry in general and in plasma processes related to deposition and etch, in particular. In near-term, ongoing high utilization rates and the fact that other fab project remain on schedule, leaders do believe that these delays in investment are largely timing related and that 2019 will, again, be a growth year.

從半導體開始，一些終端客戶改變了第二季度市場的近期前景，這開始波及設備和關鍵部件製造商。一家大型半導體製造商在季度中期宣布延遲 3D NAND 和 DRAM 的內存擴展，這對一些 AE OEM 客戶產生了重大影響，並因此影響了 AE 的半導體業務。我們在第二季度後半段開始看到這種投資延遲的影響。結果，半導體收入從第一季度創下的歷史新高開始連續下降。此外，我們看到其他半導體製造商在產量和大批量生產時間方面出現適度延遲，但預計這種影響會更加緩和。我們預計這些趨勢將影響下半年。儘管近期暫停，但我們認為長期的多年行業趨勢完好無損，並將這種投資延遲視為暫時的。對下一代節點的持續投資有助於 DRAM 和 3D NAND 的整體需求趨勢以及由大數據驅動的人工智能、物聯網和其他數據驅動應用對半導體的長期需求，同時繼續推動我們行業的整體增長特別是在與沈積和蝕刻相關的等離子工藝中。在短期內，持續的高利用率以及其他晶圓廠項目仍按計劃進行的事實，領導者確實認為這些投資延遲在很大程度上與時間有關，2019 年將再次成為增長的一年。

In addition, our leadership position across NAND, DRAM, logic and foundry applications should benefit us from a variety of memory and logic device architecture transitions. Advanced process applications combined with capacity additions and growing capital intensity in deposition and etch with higher power supplies content should allow us to grow faster than the market.

此外，我們在 NAND、DRAM、邏輯和代工應用方面的領先地位應該使我們受益於各種內存和邏輯設備架構的轉變。先進的工藝應用與產能增加以及沉積和蝕刻中不斷增加的資本密集度以及更高的電源含量相結合，應該使我們的增長速度超過市場。

Now let me move on to our semi design wins. An all important part of our success is our innovative and collaborative culture driving very close relationship with our customers. We continue to win the vast majority of the designs we target due to our deep understanding of our customer's processes and our ability to anticipate and solve the next-generation power-related technology challenges.

現在讓我繼續我們的半設計勝利。我們成功的一個重要部分是我們的創新和協作文化推動了與客戶的密切關係。由於我們對客戶流程的深刻理解以及我們預測和解決下一代電源相關技術挑戰的能力，我們繼續贏得我們所針對的絕大多數設計。

Today, every major semi-OEM is coming to AE for our leading, highly-engineered precision power solutions to help enable the road maps. Our increasing investment in R&D is a direct result of new innovative programs. Unique strength in RF power delivery and tuning allows us to displace key competitors in critical, advanced RF applications among global OEMs. Our new enabling products could change the way plasma processes are performed and would allow us to accelerate our growth across multiple applications. This quarter, wins ranged from multiple designs in advanced memory in PEALD, CVD and etch, and retrofit opportunities as we penetrate new platforms with our customers. With the addition of our recently added electrostatic offering, we are now serving e-chucks with 3 components of technology in processing, inspection and metrology tools.

今天，每個主要的半 OEM 都來到 AE 尋求我們領先的、高度工程化的精密電源解決方案，以幫助實現路線圖。我們不斷增加的研發投資是新的創新計劃的直接結果。在 RF 功率傳輸和調諧方面的獨特優勢使我們能夠在全球 OEM 中取代關鍵的高級 RF 應用中的主要競爭對手。我們新的使能產品可能會改變等離子工藝的執行方式，並使我們能夠加速跨多個應用程序的增長。本季度，我們在 PEALD、CVD 和蝕刻中贏得了先進內存的多項設計，以及我們與客戶一起滲透新平台時的改造機會。隨著我們最近增加的靜電產品的加入，我們現在為電子卡盤提供加工、檢測和計量工具中的 3 種技術組件。

Just a few years ago, we had a limited presence in inspection in metrology. Today, we have increased our capabilities with our expanded portfolio and are positioned to grow this business significantly. Our industrial business achieved record results again this quarter to further diversify our revenues. In thin films, we saw growth across the board, expanding our presence in a variety of adjacent markets. Industrial coatings accounted for the lion's share of the growth, with capacity ramping to meet the increasing demand for consumer devices.

就在幾年前，我們在計量檢測領域的影響力還很有限。今天，我們通過擴展的產品組合提高了我們的能力，並準備好顯著發展這項業務。我們的工業業務本季度再次取得創紀錄的業績，進一步豐富了我們的收入。在薄膜領域，我們看到了全面增長，擴大了我們在各種相鄰市場的影響力。工業塗料佔增長的最大份額，產能不斷增加以滿足對消費設備日益增長的需求。

Our advanced RF industrial products also contributed with their largest quarter in recent history, driven by the ramp of LCD TVs and mobile OLED applications. Major glass-coating projects and technology upgrade added to a strong performance as well.

在 LCD 電視和移動 OLED 應用的增長推動下，我們先進的 RF 工業產品也創造了近期歷史上最大的季度業績。重大玻璃鍍膜項目和技術升級也增加了強勁的業績。

In Specialty Power, power control modules showed solid momentum this quarter in glass, metals, solar and thin film battery applications, especially in EMEA and Asia, aided by 3 acquisitions in the last year, including Excelsys, Trek and our most recent purchase of the electrostatic product line from Monroe Electronics. Specialty Power is fast becoming an important contributor to our industrial business, having more than doubled in just the last year.

在特種電源方面，功率控制模塊本季度在玻璃、金屬、太陽能和薄膜電池應用方面表現出強勁勢頭，尤其是在 EMEA 和亞洲，得益於去年的 3 次收購，包括 Excelsys、Trek 和我們最近收購的Monroe Electronics 的靜電產品線。Specialty Power 正迅速成為我們工業業務的重要貢獻者，僅在去年就增長了一倍多。

Underlying the strong growth in our industrial business is our ongoing ability to win critical designs at new and existing customers. Importantly this quarter, we displaced large competitors in a number of thin film design wins, including a significant win with a large solar PV manufacturer. AE secured this win due to our strong combination of product performance, operational excellence, localized footprint and ability to quickly ramp to meet our customers' demand. This win represent mid-teen million dollars of new revenue for 2018.

我們工業業務強勁增長的基礎是我們不斷贏得新老客戶關鍵設計的能力。重要的是，本季度，我們在許多薄膜設計項目中取代了大型競爭對手，包括與一家大型太陽能光伏製造商的重大合作。AE 憑藉我們在產品性能、卓越運營、本地化足跡以及快速提升以滿足客戶需求的能力方面的強大組合，贏得了此次勝利。此次勝利代表了 2018 年 100 萬美元的新收入。

In China, we expanded our RF technology into industrial applications, such as atmospheric plasma processes, and are seeing increased adoption of our Ascent product in advanced coating technologies for consumer devices, industrial and glass applications. These wins reflect our recognition as the industry leader, enabling our customers' road maps for highly engineered materials and new applications.

在中國，我們將我們的 RF 技術擴展到工業應用，例如常壓等離子工藝，並且我們的 Ascent 產品越來越多地被用於消費設備、工業和玻璃應用的先進塗層技術。這些勝利反映了我們作為行業領導者的認可，使我們的客戶能夠制定高度工程化材料和新應用的路線圖。

In Specialty Power, we expanded our presence and gained share with numerous wins. In low-voltage, we won the design for an MRI scanner replacing multiple competitive single-output power supply with our modular solution, allowing the customers to simplify and accelerate their power system design. Additionally, we had another win for scanning electron microscope application resulting from our unique fanless design. As we expand our penetration into the medical equipment market, we see an opportunity to introduce additional products across our portfolio.

在 Specialty Power 領域，我們擴大了業務範圍並贏得了眾多勝利。在低壓方面，我們贏得了 MRI 掃描儀的設計，用我們的模塊化解決方案取代了多個具有競爭力的單輸出電源，使客戶能夠簡化和加速他們的電源系統設計。此外，由於我們獨特的無風扇設計，我們在掃描電子顯微鏡應用方面又獲得了勝利。隨著我們擴大對醫療設備市場的滲透，我們看到了在我們的產品組合中引入更多產品的機會。

In high voltage, we continue to penetrate the mass spectrometry market and gain shares due to the stability and low repo of our power solutions. In thermal, we grew our presence in process control for industry applications in parameters and power control modules due to our performance, global support infrastructure and close customer relationships.

在高壓方面，由於我們電源解決方案的穩定性和低迴購率，我們繼續滲透質譜市場並獲得份額。在熱力方面，由於我們的性能、全球支持基礎設施和密切的客戶關係，我們在參數和功率控制模塊的工業應用過程控制領域擴大了影響力。

In the third quarter, we expect ongoing strength across our thin film and Specialty Power applications, especially PV solar, consumer electronic products coating, LCD capacity and mobile OLED and high-voltage products. We continue to expect CAGR growth in the mid-teens for these products.

在第三季度，我們預計我們的薄膜和特種電源應用將持續強勁，尤其是光伏太陽能、消費電子產品塗層、LCD 容量和移動 OLED 以及高壓產品。我們繼續預計這些產品的 CAGR 將在十幾歲左右增長。

In addition, our strategy to add complementary applications, technologies and product lines to our industrial business should expand our reach into new and adjacent protocols and increase our SAM. As I mentioned, yesterday we announced the acquisition of LumaSense Technologies. The advanced measurement technology from LumaSense will allow us to expand our sales in core semiconductors and thin film market and broaden our exposure to a growing set of industrial applications for material processing, power and thermal management and factory safety. Specifically, this acquisition will expand our electrostatic chuck offering, complement our leading parameter solutions in this semi-market, accelerate our penetration into industrial pyrometry and add new integrated industrial temperature control in metrology solutions for both thin films coating and thermal processing. We believe a global channel innovation, customer relationships and complementary technical strength will accelerate growth of these products and enable us to realize significant synergies across our business. Our aspiration is to grow our photonic-based products consisting of our current AE parameters and LumaSense products to greater than $100 million per year over the next 3 years. Contributing nearly 14% of total revenue this quarter, our service business continues to be a key component of our overall growth strategy. Our record second quarter revenues worldwide were driven by retrofit programs, growth in product repairs and regional expansion.

此外，我們向工業業務添加補充應用程序、技術和產品線的戰略應將我們的業務範圍擴大到新的和相鄰的協議，並增加我們的 SAM。正如我提到的，昨天我們宣布收購 LumaSense Technologies。LumaSense 的先進測量技術將使我們能夠擴大我們在核心半導體和薄膜市場的銷售，並擴大我們在材料加工、電力和熱管理以及工廠安全等不斷增長的工業應用領域的曝光度。具體而言，此次收購將擴大我們的靜電吸盤產品，補充我們在這個半市場中領先的參數解決方案，加速我們在工業高溫測量領域的滲透，並在薄膜塗層和熱處理的計量解決方案中增加新的集成工業溫度控制。我們相信全球渠道創新、客戶關係和互補的技術實力將加速這些產品的增長，並使我們能夠在我們的業務中實現顯著的協同效應。我們的目標是在未來 3 年內將我們基於光子的產品（包括我們當前的 AE 參數和 LumaSense 產品）增長到每年超過 1 億美元。我們的服務業務佔本季度總收入的近 14%，仍然是我們整體增長戰略的重要組成部分。我們創紀錄的第二季度全球收入受到改造計劃、產品維修增長和區域擴張的推動。

Looking forward, we expect our service business to continue to grow at roughly 10% per year, the results of accelerated share gain, growing installed base and sales of our non-break fix products.

展望未來，我們預計我們的服務業務將繼續以每年約 10% 的速度增長，這是加速份額增長、不斷增長的安裝基礎和我們的不間斷修復產品銷售的結果。

In summary, the near-term headwinds in the semiconductor industry are driven by temporary CapEx delays, mainly in memory, while the multiple long-term semiconductor industry drivers remain intact. We expect to see a resumption of the growth in the semi business in general and in our plasma-enabling products in particular, driven by the high-capital intensity in etch and deposition applications with higher power content.

總而言之，半導體行業的短期逆風是由暫時的資本支出延遲驅動的，主要是在內存方面，而半導體行業的多個長期驅動因素仍然完好無損。我們預計，在具有更高功率含量的蝕刻和沈積應用中的高資本密集度的推動下，我們預計半導體業務將恢復增長，尤其是我們的等離子產品。

Our industrial and service business continue to thrive, reaching new heights and penetrating new and existing applications and customers. We are excited to add LumaSense to the AE family of products and technologies and see meaningful growth and synergies from this acquisition. Continued growth in our industrial business, combined with additional revenue from our acquisitions, will help to mitigate the impact of the pause in the semiconductor market in the second half of 2018 and will continue to position AE for growth in 2019.

我們的工業和服務業務繼續蓬勃發展，達到新的高度並滲透到新的和現有的應用程序和客戶中。我們很高興將 LumaSense 添加到 AE 產品和技術系列中，並從此次收購中看到有意義的增長和協同效應。我們工業業務的持續增長，加上我們收購帶來的額外收入，將有助於減輕 2018 年下半年半導體市場停滯的影響，並將繼續為 AE 在 2019 年的增長奠定基礎。

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 Paul.

有了這個，讓我把電話轉給保羅。

Thank you, Yuval, and good morning, everyone. In the second quarter, we continued to execute on our strategy to grow and diversify the company. At the same time, we began to see the impact of the near-term pause in the semiconductor market.

謝謝 Yuval，大家早上好。在第二季度，我們繼續執行我們的戰略以實現公司的發展和多元化。與此同時，我們開始看到半導體市場近期停滯的影響。

Total revenue was $196 million, up slightly from last quarter's record levels and 18.2% higher than a year ago. Both our industrial and service products reached new heights, outperforming our expectations. Semi revenue was impacted by the softening of orders towards the end of the quarter due to the postponement of memory spending by a large manufacturer. Despite the softness, revenues for the first half grew 24% year-over-year, with 19% growth in semi and 53% growth in our industrial products.

總收入為 1.96 億美元，略高於上一季度的創紀錄水平，比去年同期增長 18.2%。我們的工業產品和服務產品都達到了新的高度，超出了我們的預期。由於一家大型製造商推遲內存支出，本季度末訂單疲軟影響了半成品收入。儘管疲軟，但上半年收入同比增長 24%，半成品增長 19%，工業產品增長 53%。

Looking at sales by market. Semiconductor revenue in the quarter was $127.3 million, down 6.4% from last quarter, but up 8.8% from last year. Shipment schedules for the second half of the quarter were impacted by a delay in investment in 3D NAND that primarily affected one of our major customers. We expect this delay, combined with recently announced pushouts in logic, to further impact the second half of the year. However, as Yuval mentioned, based on what we're hearing, we believe this is largely related to specific customers' mix, yield and timing of investment and not a change in the longer-term trends. With healthy underlying long-term demand for DRAM, 3D NAND, foundry and logic, we believe this pause in investment is temporary and that 2019 will be a growth year for semiconductor capital equipment investment, with continued increased etch and dep intensity driven by 3D device scaling and adoption of advanced materials and processes.

按市場看銷售額。本季度半導體收入為 1.273 億美元，比上一季度下降 6.4%，但比去年同期增長 8.8%。本季度下半年的出貨時間表受到 3D NAND 投資延遲的影響，這主要影響了我們的一個主要客戶。我們預計這種延遲，加上最近宣布的邏輯推出，將進一步影響今年下半年。然而，正如 Yuval 所提到的，根據我們所聽到的，我們認為這在很大程度上與特定客戶的組合、收益和投資時機有關，而不是長期趨勢的變化。鑑於對 DRAM、3D NAND、晶圓代工和邏輯的健康潛在長期需求，我們認為這種投資暫停是暫時的，2019 年將是半導體資本設備投資增長的一年，3D 設備驅動的蝕刻和刻蝕強度將持續增加擴展和採用先進的材料和工藝。

Industrial revenue saw significant growth and reached a record $41.9 million, up 19.2% from the first quarter and 59.7% from last year. During the quarter, we saw multiple design wins, including a significant win with our large solar PV manufacturer, and expect our industrial products to continue to grow in the double-digit range.

工業收入大幅增長，達到創紀錄的 4190 萬美元，比第一季度增長 19.2%，比去年同期增長 59.7%。在本季度，我們看到了多項設計勝利，包括與我們的大型太陽能光伏製造商的重大勝利，並預計我們的工業產品將繼續以兩位數的速度增長。

Service revenue for the quarter was also a record $26.8 million, up 9.8% from the first quarter and 18.6% from last year. These results demonstrate the value that our diversification strategy is providing, by helping to offset fluctuations in our semi business.

本季度的服務收入也達到創紀錄的 2680 萬美元，比第一季度增長 9.8%，比去年同期增長 18.6%。這些結果通過幫助抵消我們半導體業務的波動，證明了我們的多元化戰略所提供的價值。

Gross margin for the second quarter was 51.6% compared to 53% in the prior quarter and 52.5% a year ago. On a non-GAAP basis, gross margin was 51.8% compared to 53.2% and 52.8%, respectively.

第二季度的毛利率為 51.6%，上一季度為 53%，一年前為 52.5%。按非美國通用會計準則計算，毛利率分別為 53.2% 和 52.8%，分別為 51.8% 和 52.8%。

Costs related to expedited shipping to meet strong customer demand early in the quarter, inventory revaluation associated with lower material costs and the timing of expenses relating to the relocation and manufacturing for certain of our products impacted gross margins. These costs were largely onetime in nature, and we expect gross margins to return to within our expected model of 52% to 54% in the third quarter, but at the low end primarily due to the impact of lower volumes.

為滿足本季度初強勁的客戶需求而加快運輸的相關成本、與較低材料成本相關的庫存重估以及與我們某些產品的搬遷和製造相關的費用的時間安排影響了毛利率。這些成本基本上是一次性的，我們預計第三季度毛利率將恢復到我們預期的 52% 至 54% 的模型範圍內，但處於低端主要是由於銷量下降的影響。

GAAP operating expenses for the second quarter decreased in both absolute dollars and as a percentage of revenue, mainly due to lower stock-based compensation, offset by increased research and development spending. Non-GAAP operating expenses were $41.9 million or 21.3% of revenue. This compares to $41.3 million or 21.2% in the prior quarter and $34.8 million or 21% last year. The increase from the prior year and modest increase from last quarter were primarily related to higher R&D spending as we invest in new products and technologies.

第二季度的 GAAP 運營費用以絕對美元計算和占收入的百分比均有所下降，這主要是由於基於股票的薪酬較低，但被增加的研發支出所抵消。非 GAAP 運營費用為 4190 萬美元，佔收入的 21.3%。相比之下，上一季度為 4130 萬美元或 21.2%，去年為 3480 萬美元或 21%。與上一年相比的增長以及與上一季度相比的溫和增長主要與研發支出增加有關，因為我們投資於新產品和新技術。

Looking forward, we expect base expenses to decline modestly in Q3 as we take actions to reduce discretionary spending, while preserving our investments to deliver our growth strategy.

展望未來，我們預計第三季度基本支出將小幅下降，因為我們採取行動減少可自由支配的支出，同時保留我們的投資以實現我們的增長戰略。

GAAP operating margin for the quarter was 28.6% compared to 28.7% last quarter and 28.8% in the same period last year.

本季度 GAAP 營業利潤率為 28.6%，上一季度為 28.7%，去年同期為 28.8%。

Non-GAAP operating margin was 30.5% compared to 32% in the previous quarter and 31.8% a year ago. Our tax rate for the second quarter was 16.4%, in line with our expectation. We expect our tax rate for the year to remain in the 16% to 17% range. GAAP earnings per share for the second quarter were $1.17 compared to $1.16 last quarter and $1.14 last year.

非 GAAP 營業利潤率為 30.5%，上一季度為 32%，一年前為 31.8%。我們第二季度的稅率為 16.4%，符合我們的預期。我們預計今年的稅率將保持在 16% 至 17% 的範圍內。第二季度的 GAAP 每股收益為 1.17 美元，上一季度為 1.16 美元，去年為 1.14 美元。

Non-GAAP EPS for the quarter was $1.25 compared to $1.34 in the first quarter and $1.22 a year ago.

本季度非美國通用會計準則每股收益為 1.25 美元，而第一季度為 1.34 美元，一年前為 1.22 美元。

Turning to the balance sheet. In the second quarter, we generated $53 million of operating cash from continuing operations. We repurchased $25.3 million of stock in the quarter and $38.1 million year-to-date as part of capital allocation strategy. Since the inception of our program, we have spent $118 million to repurchase 2.7 million shares. We ended the quarter with $436.1 million in cash and marketable securities.

轉向資產負債表。第二季度，我們從持續經營中產生了 5300 萬美元的經營現金。作為資本配置策略的一部分，我們在本季度回購了 2530 萬美元的股票，今年迄今回購了 3810 萬美元。自我們的計劃啟動以來，我們已經花費 1.18 億美元回購了 270 萬股股票。本季度結束時，我們擁有 4.361 億美元的現金和有價證券。

Net working capital increased modestly. Day sales outstanding were 49 days compared to 54 days last quarter. Days payable declined from 63 days to 55 days, primarily due to the timing of purchases during the quarter. Inventory turns decreased from 3.9 to 3.5 as we invested in inventory related to product manufacturing transitions, securing strategic sources of supply, lower demand late in the quarter for our semi products and staging of the inventory for our solar win. We expect inventory to decline from these levels as most of this investment is behind us.

淨營運資金略有增加。待售天數為 49 天，而上一季度為 54 天。應付天數從 63 天減少到 55 天，這主要是由於本季度的採購時間。庫存周轉率從 3.9 下降到 3.5，因為我們投資於與產品製造轉型相關的庫存，確保戰略供應來源，本季度末對我們半成品的需求降低以及為我們的 solar win 準備庫存。我們預計庫存將從這些水平下降，因為大部分投資都在我們身後。

Yesterday, we announced a definitive agreement to acquire LumaSense, a leader in photonic-based measurement and monitoring solutions for power-intensive industries. This acquisition is very complementary to our current line of pyrometry-based temperature measurement products, and we believe we'll have significant revenue and operating synergies. Under the terms of the agreement, we will pay $85 million in cash on a debt-free basis, subject to a working capital adjustment. We expect to close the transaction late in the quarter, subject to customary closing conditions and regulatory approvals. LumaSense revenues were approximately $60 million in 2017, and we expect the transaction to be immediately accretive on a non-GAAP basis.

昨天，我們宣布了一項收購 LumaSense 的最終協議，LumaSense 是為電力密集型行業提供基於光子的測量和監控解決方案的領導者。此次收購是對我們目前基於高溫測量的溫度測量產品線的補充，我們相信我們將獲得可觀的收入和運營協同效應。根據協議條款，我們將在無債務的基礎上支付 8500 萬美元現金，但需調整營運資金。我們預計將在本季度末完成交易，具體取決於慣例成交條件和監管部門的批准。LumaSense 2017 年的收入約為 6000 萬美元，我們預計該交易將在非 GAAP 基礎上立即實現增長。

Given current market conditions and order levels, we expect revenues for the third quarter to be between $160 million to $170 million and non-GAAP earnings per share between $0.93 and $1.07.

鑑於當前的市場狀況和訂單水平，我們預計第三季度的收入將在 1.6 億美元至 1.7 億美元之間，非 GAAP 每股收益將在 0.93 美元至 1.07 美元之間。

Overall, we continue to deliver a leading financial model, while we diversify our business into adjacent and new markets, although the pause in semiconductor investment will impact our second half, we believe the long-term trends are still intact. We are confident in our growth strategy and our ability to meet our strategic aspirational goals and to deliver growth in earnings over time.

總體而言，我們將繼續提供領先的財務模式，同時將業務多元化到鄰近和新市場，儘管半導體投資的暫停將影響我們的下半年，但我們相信長期趨勢仍然完好。我們對我們的增長戰略和我們實現戰略抱負目標以及隨著時間的推移實現收益增長的能力充滿信心。

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 the line of Krish Sankar of Cowen and Company.

（操作員說明）我們的第一個問題來自 Cowen and Company 的 Krish Sankar。

I had a few of them. First one, Yuval, can you just help us on the guidance in September quarter, how to think about the semi and the non-semi business sequentially?

我有幾個。第一個，Yuval，你能否幫助我們提供 9 月季度的指導，如何依次考慮半導體和非半導體業務？

We do not delineate between different pieces of the business. So directionally, as expected, our semi will decline in Q3 and we expect our industrial business to continue to grow.

我們不區分業務的不同部分。因此，在方向上，正如預期的那樣，我們的半成品將在第三季度下降，我們預計我們的工業業務將繼續增長。

Got it. Got it. And then just a housekeeping. How much did Trek contribute to the June quarter numbers? And is there any LumaSense in your September guidance?

知道了。知道了。然後只是一個家政服務。Trek 對 6 月季度的數據貢獻了多少？您的 9 月指南中是否有任何 LumaSense？

So we do not have LumaSense in our September guidance, and let me ask in terms of Trek?

所以我們在 9 月的指南中沒有 LumaSense，讓我問一下 Trek？

About $6 million.

大約600萬美元。

About $6 million.

大約600萬美元。

$6 million. Got it. Okay. So just if I look at your June numbers compared to your peers, looks like your June was worse relatively compared to like MKSI, is there something going on from a fundamental standpoint? Is it just exposure? Or what's happening over there?

600萬美元。知道了。好的。因此，如果我看一下您的 6 月份數據與同行相比，看起來您的 6 月份與 MKSI 相比相對更差，從基本面來看是否發生了什麼？只是曝光嗎？或者那邊發生了什麼？

I think it's mainly timing. And I think what we saw is, we saw an earlier request to reduce the semi demand that came from our customers. It is timing related due to reduction in shipments. And supporting our customers and their plans, we basically aligned our shipments to their demand plan. At the same time, we saw a significant jump in our solar PV business as we won a significant win in the specific area and that also affected our material planning. And as a result of that, you saw the increase -- slight increase in the inventories.

我覺得主要是時機。而且我認為我們看到的是，我們看到了早期要求減少來自客戶的半成品需求。由於出貨量減少，這是與時間相關的。為了支持我們的客戶和他們的計劃，我們基本上使我們的出貨量與他們的需求計劃保持一致。與此同時，由於我們在特定領域贏得了重大勝利，我們的太陽能光伏業務出現了顯著增長，這也影響了我們的材料計劃。結果，您看到了增加——庫存略有增加。

Got it. Got it. It's very helpful. And then I just had 2 other quick questions, Yuval. One is, in your prepared comments, you said that you expect the pause in the second half of the year. Should we assume Q4 is also going to be a weak quarter? Is it the right way to read through given the fact that most of your customers are saying, at least on the semi side, Q3 is the trough?

知道了。知道了。這非常有幫助。Yuval，然後我還有另外兩個簡短的問題。一是，在你準備好的評論中，你說你預計下半年會暫停。我們是否應該假設第四季度也將是一個疲軟的季度？考慮到你的大多數客戶都說，至少在半邊，Q3 是谷底，這是通讀的正確方法嗎？

Well, we listen to the same sources of information. We see also that Q3 is the bottom. We believe that it will take a quarter or 2 to recover. We still believe that 2018 is a growth year, and we expect the resumption of the business to occur at the beginning of 2019. We expect 2019 to be a growth year as well. So exactly when in which quarter we're going to see the initial recovery, we can't say that. But we believe, based on the information we have right now that we see a bottom in Q3 and a recovery that will take a quarter or 2.

好吧，我們聽取相同的信息來源。我們還看到 Q3 是底部。我們認為需要一到兩個季度才能恢復。我們仍然認為 2018 年是增長的一年，我們預計業務的恢復將在 2019 年初發生。我們預計 2019 年也將是增長的一年。因此，我們不能確切地說，我們將在哪個季度看到初步復甦。但我們相信，根據我們目前掌握的信息，我們看到第三季度觸底，復甦將需要一兩個季度。

Got it. Got it. That's very helpful. Then a final question, Yuval. When I look at your September guidance, it looks like semis is going to be down about 24%, 25% similar to MKSI, similar to what Lam also guided. In the past when your customers semi cap OEMs saw a downtick, they'd usually use up their own inventory. Looks like that's not happening this time. Is the behavior different today versus prior cycles? Can you just help us understand what's going on from a customer mentality standpoint?

知道了。知道了。這很有幫助。最後一個問題，Yuval。當我查看你 9 月份的指導時，看起來半決賽將下降約 24%，與 MKSI 相似，下降 25%，與 Lam 也給出的指導相似。過去，當您的客戶的半導體原始設備製造商看到價格下跌時，他們通常會用完自己的庫存。看來這次不會了。今天的行為與之前的周期不同嗎？您能否從客戶心態的角度幫助我們了解正在發生的事情？

Well, I think it has to do with timing in our opinion and also end customer mix and product mix. When we look at Q3, we are very much in line with the rest of the industry. We're not an outlier. We believe we had an early indication in Q2, especially the second half of Q2, with request to align our shipments to align with our customers' plans. And again, as you know, we do have just-in-time arrangement with almost all of our large customers. And we try to react very quickly to their demand plans changes and their volume planning, and we have a very close alignment conversation with our customers to make sure that we respond quickly to changes in volume and mix. What you see right now is an early indication from our customers related to volume and mix.

好吧，我認為這與我們認為的時機以及最終客戶組合和產品組合有關。當我們看第三季度時，我們與其他行業非常一致。我們不是局外人。我們相信我們在第二季度，尤其是第二季度下半年有一個早期跡象，要求調整我們的出貨量以符合我們客戶的計劃。而且，如您所知，我們確實與幾乎所有大客戶都有準時制安排。我們試圖對他們的需求計劃變化和他們的數量計劃做出快速反應，我們與客戶進行非常密切的協調對話，以確保我們對數量和組合的變化做出快速反應。您現在看到的是我們客戶與數量和組合相關的早期指示。

I think I'll add to that, Krish. Over the last few years, there's been a much higher coupling within the supply chain to the demands of the business. And for our major customers, we supply inventory to them on a just-in-time basis based on min-max spends. Now those spends can change as volume changes, but you don't have the big buildups of inventory that you had in the past. So when you have an inflection point like this, there'll be a little bit of inventory because you have inventory in the bins. But it's less than a quarter, it's not like we've seen maybe going back several years where you could have 1 or 2 quarters of just plain inventory burn. It's very different from that now.

我想我會補充一點，Krish。在過去的幾年裡，供應鏈與業務需求的耦合度要高得多。對於我們的主要客戶，我們會根據最小-最大支出及時向他們供應庫存。現在這些支出可以隨著數量的變化而變化，但你沒有過去那樣的大量庫存。所以當你有這樣的拐點時，會有一點庫存，因為你在垃圾箱裡有庫存。但這還不到四分之一，這不像我們看到的那樣，也許可以追溯到幾年前，在那裡你可以有 1 或 2 個季度的簡單庫存燃燒。與現在大不相同。

Our next question comes from the line of Tom Diffely of D.A. Davidson.

我們的下一個問題來自 D.A. 的 Tom Diffely。戴維森。

So maybe just getting back to the initial kind of semiconductor cycle question, do you see a difference in how you expect either the memory side of the business to come back or the foundry, logic side of business come back in terms of timing? Is one of those expected to come back before the other?

因此，也許只是回到最初的半導體週期問題，您是否看到您期望業務的內存方面恢復或晶圓代工業務的邏輯方面在時間方面的差異？預計其中一個會比另一個先回來嗎？

Tom, we don't have visibility to the timing of the recovery. And even if you look at recent news that came from the industry, we heard just this morning that Samsung is talking about investment in 2019. But they remained quiet about 2018. So we are confident that we will see recovery across-the-board, both in logic, foundry and memory, starting in the beginning of 2019, but I cannot tell you which one is going to be first.

湯姆，我們不知道恢復的時間。即使你看看最近來自行業的消息，我們今天早上才聽說三星正在談論 2019 年的投資。但他們對 2018 年保持沉默。因此，我們有信心從 2019 年初開始，我們將在邏輯、代工和內存方面看到全面的複蘇，但我不能告訴你哪個會是第一個。

Okay. And then you did talk about how you are fairly bullish on 2019 and beyond and you see etch and dep intensity continuing to go up. Is that also true with the power supplies, the power supply intensity on both going forward?

好的。然後你確實談到了你如何相當看好 2019 年及以後，你看到蝕刻和深度強度繼續上升。電源也是如此，兩者的電源強度都在向前發展嗎？

Yes. In general, what you see, as the industry, especially memory, is migrating to more complex devices and also logic and foundry, there is an increase in the complexity of the tools and some of the increase has to do with higher power and higher capabilities in terms of control and metrology. As a result of that, we expect to see in the future increase in dollar content per chamber.

是的。總的來說，正如您所看到的，隨著行業，尤其是內存，正在向更複雜的設備以及邏輯和代工廠遷移，工具的複雜性也在增加，其中一些增加與更高的功率和更高的功能有關在控制和計量方面。因此，我們預計未來每個腔室的美元含量會增加。

Okay. And it sounds like with the acquisition of LumaSense, you started to augment that with some new products as well. So I guess, talking about LumaSense, you talked about an $85 million payment, but I assume there is also the assumption of some debt. Just kind of curious if you could talk about the level of debt you're assuming as well.

好的。聽起來好像在收購 LumaSense 之後，你們也開始用一些新產品來增強它。所以我想，在談到 LumaSense 時，你談到了 8500 萬美元的付款，但我認為還承擔了一些債務。只是有點好奇你是否也可以談談你承擔的債務水平。

Yes, Tom, it's $85 million on a debt-free basis. So there won't be any liabilities. We will acquire net working capital, and there is an adjustment for that based on the target amount. But otherwise, it's a pretty clean transaction.

是的，湯姆，在無債務基礎上是 8500 萬美元。所以不會有任何負債。我們將獲得淨營運資金，並根據目標金額對其進行調整。但除此之外，這是一個非常乾淨的交易。

Tom, let me say, if I may say a few words about LumaSense. LumaSense is extremely complementary to what we have in semi. Our Sekidenko product line is the market leader in temperature measurement using pyrometry in the semiconductor industry. LumaSense provides complementary technology based on fiberoptics thermometry that is complementary to pyrometry. However based on 2017 revenue, their semi content is only 25%. Their industrial content is 75% of revenue, which is exciting for us as we continue to expand our measurements in thermometry solutions and especially with them with photonic measurement capabilities into new verticals increasing our SAM and it's very complementary to our power products as we go into more thermal and power applications in new verticals. They were growing modestly profitable. And it's a company that has a huge potential that we can help accelerate just like we did with the last 7 acquisitions we had.

湯姆，請允許我說幾句關於 LumaSense 的話。LumaSense 與我們在 semi 中的產品極為互補。我們的 Sekidenko 產品系列是半導體行業使用高溫計進行溫度測量的市場領導者。LumaSense 提供基於光纖測溫的補充技術，與高溫測量互補。然而，根據 2017 年的收入，他們的半成品率僅為 25%。他們的工業含量佔收入的 75%，這對我們來說是令人興奮的，因為我們繼續擴展我們在測溫解決方案中的測量，尤其是與他們一起將光子測量能力擴展到新的垂直領域，增加我們的 SAM，並且在我們進入時它與我們的電源產品非常互補新垂直領域的更多熱能和電力應用。他們的利潤適度增長。這是一家擁有巨大潛力的公司，我們可以像過去 7 次收購一樣幫助加速發展。

Okay. Sounds good. And then, just finally for Paul on the tax side, talk about 16% to 17% sounds like for the next couple of quarters. Is the long-term rate still expected to be in the mid-teens? Or is that 16% to 17% range a little bit more feasible?

好的。聽起來不錯。然後，最後在稅收方面對保羅來說，在接下來的幾個季度裡談論 16% 到 17% 聽起來像是。長期利率是否仍有望保持在十幾歲左右？還是 16% 到 17% 的範圍更可行一些？

Yes. Tom, 16% to 17% is where things are shaking out after the U.S. tax reform. We do think there are other strategies that will allow us to bring the rate down into that mid-teens range over the next 12 months or so.

是的。湯姆，16% 到 17% 是美國稅制改革後發生變化的地方。我們確實認為還有其他策略可以讓我們在未來 12 個月左右將利率降至十幾歲左右。

Our next question comes from the line of Patrick Ho of Stifel.

我們的下一個問題來自 Stifel 的 Patrick Ho。

This is Brian on for Patrick. Maybe to start with, I guess, the semi versus industrial mix at LumaSense seems a little bit more skewed to industrial than we'd, maybe, initially understood, and so that's interesting. Just curious if you have sort of the headcount for LumaSense and is the -- the sales force headcount more specifically also sort of 3 quarters industrial, kind of 1 quarter semi also really focused on the industrial market there?

這是帕特里克的布賴恩。也許首先，我想，LumaSense 的半工業與工業混合似乎比我們最初理解的更偏向工業，所以這很有趣。只是好奇，如果你有 LumaSense 的員工人數，而且——更具體地說，銷售人員人數也有 3 個季度的工業，1 個季度的半也真的專注於那裡的工業市場嗎？

So I can share with you the number of employees right now. We haven't closed the deal yet. As you know, we're right now waiting for the -- to closing. But I can tell you that sales to the semiconductor industry usually are being handled by account teams, while sales into industrial applications in many cases go through channels. So counting salespeople heads does not reflect volume of business that goes into different industry segment. Even in our case, our semiconductor business is being managed by a very small team of account management teams, while our industrial revenue is managed through very broad base of global channels that are either regional expert or industry experts. Now the delineation in the revenue of LumaSense that I basically talked about, is based on the 2017 revenue split between semi and industrial. In the industrial world, they were very broad from automotive to oil and gas to energy, power generation, et cetera. It's a very broad base of applications, all served by photonic-based measurement and sensing solutions.

所以我現在可以與您分享員工人數。我們還沒有完成交易。如您所知，我們現在正在等待 - 關閉。但我可以告訴你，半導體行業的銷售通常由客戶團隊處理，而工業應用的銷售在許多情況下是通過渠道進行的。因此，計算銷售人員人數並不能反映進入不同行業領域的業務量。即使在我們的案例中，我們的半導體業務也由一個非常小的客戶管理團隊管理，而我們的工業收入是通過非常廣泛的全球渠道基礎管理的，這些渠道要么是區域專家，要么是行業專家。現在我基本上談到的 LumaSense 收入的劃分是基於 2017 年半導體和工業之間的收入分配。在工業界，它們非常廣泛，從汽車到石油和天然氣再到能源、發電等等。這是一個非常廣泛的應用基礎，所有這些都由基於光子的測量和傳感解決方案提供服務。

Got it. Okay. Great. That's very helpful. Makes a lot of sense too. Maybe just one -- another question here. Just more broader and then talking about the existing business evolving. In industrial, roughly, how much of that business is non-U. S. -- I think non-U. S. overall for the business is something like 1/3, but I imagine it's a little bit higher for industrial. I'm just curious, what are you tracking more broadly with customers and further more broadly in terms of understanding whether export controls and the tariff situation will have any impact on current momentum you're seeing in the industrial market?

知道了。好的。偉大的。這很有幫助。也很有道理。也許只有一個-- 另一個問題。只是更廣泛，然後談論現有業務的發展。在工業領域，粗略地說，有多少業務是非美國的。S.--我認為非U。S. 總體而言，業務大約是 1/3，但我想它對於工業來說會高一點。我只是好奇，在了解出口管制和關稅情況是否會對您在工業市場上看到的當前勢頭產生任何影響方面，您更廣泛地與客戶跟踪什麼？

So let me start with the tariff and ask, maybe, Paul to give you some information about the tariff.

因此，讓我從關稅開始，也許，請保羅向您提供有關關稅的一些信息。

Yes, so on the tariff side -- well, first of all, on both sides of this, we have very few products that are subject to export control. There are a few, but they're limited to a very small number of countries. On the tariff side, obviously, the environment related to tariffs continues to evolve and the rules and the application of those rules are still evolving. We've looked at the first list that came out and that's very small impact on the company. The second and third lists broadly could have more impact. But at this point, there is a number of open questions about how the rules will be implemented. There is a lot of mitigating strategies, both on the commercial and operational basis. So the net-net of it, at this point, we don't know, but we believe it's minimum.

是的，所以在關稅方面——嗯，首先，在這兩個方面，我們很少有產品受到出口管制。有一些，但它們僅限於極少數國家/地區。在關稅方面，顯然，與關稅相關的環境在不斷發展，規則和這些規則的應用也在不斷發展。我們已經查看了第一份公佈的名單，這對公司的影響非常小。第二和第三份清單可能會產生更大的影響。但在這一點上，關於規則將如何實施存在許多懸而未決的問題。在商業和運營基礎上有很多緩解策略。所以它的淨值，在這一點上，我們不知道，但我們相信它是最小的。

Maybe one more question there for you then, Paul. Is there any impact on gross margins in Q2 from lowering utilization rates? I guess the signals in the semi market started to weaken in sort of mid-late Q2.

保羅，也許還有一個問題要問你。降低利用率對第二季度的毛利率有影響嗎？我猜半導體市場的信號在第二季度中後期開始減弱。

Yes. There is some impact and volume will play a role. It's more of a Q3 impact than a Q2 impact. The impacts we saw in Q2, I'd say, were more timing related. There was some inventory revaluation as we're seeing lower costs, that's good news in the long run, but has a short-term impact. There is some transition costs as we are consolidating some manufacturing activity. We saw early demand that was strong in the quarter. We talked about that at the end of last quarter, which caused us to have a little higher expediting costs on freight. So when we look at the margins for the quarter, although they were lower, there is nothing structural in the margins that would impact us. And even the -- that little bit different mix with semi industrial had no impact. So we don't see structurally a reason why our margins would be any different than they've been historically. Volume will have a modest impact just as an impact on fixed cost.

是的。有一些影響，數量將發揮作用。與第二季度的影響相比，第三季度的影響更大。我想說，我們在第二季度看到的影響更多是與時間相關的。由於我們看到成本降低，因此庫存進行了一些重估，從長遠來看這是個好消息，但會產生短期影響。由於我們正在整合一些製造活動，因此存在一些過渡成本。我們看到本季度的早期需求強勁。我們在上個季度末談到了這一點，這導致我們的貨運加急成本略高。因此，當我們查看本季度的利潤率時，儘管它們較低，但利潤率沒有任何結構性影響我們。甚至 - 與半工業的有點不同的組合也沒有影響。因此，我們在結構上看不到我們的利潤率與歷史上有任何不同的原因。銷量將產生適度的影響，就像對固定成本的影響一樣。

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

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

Just on LumaSense. First, I wanted to ask if you need Chinese approval for the acquisition?

就在 LumaSense 上。首先，我想問一下你們的收購是否需要中國的批准？

No, we don't.

不，我們沒有。

Okay. And then, I also wanted to ask about 2019, you said you're confident it would be a growth year, but just wondering what kind of visibility you have and whether you think that, that's driven by both semi or non-semi or both and if you could maybe help us just understand what some of the key drivers are for 2019 to give us some conviction in that.

好的。然後，我還想問一下 2019 年，你說你有信心這將是增長的一年，但只是想知道你有什麼樣的知名度，你是否認為，這是由半或非半或兩者驅動的如果你能幫助我們了解 2019 年的一些關鍵驅動因素，讓我們對此有一些信心。

Look, Wes, we expect to see growth in both semi and industrial. And we base that belief on general information available to us, but also planning indications in signals we get from key customers.

聽著，韋斯，我們預計半成品和工業都會增長。我們將這種信念建立在我們可以獲得的一般信息的基礎上，同時也計劃了我們從主要客戶那裡獲得的信號中的指示。

Could you give better visibility in the industrial versus semi given some of the moving parts in semi right now?

考慮到現在半成品中的一些活動部件，您能否更好地了解工業與半成品？

I would say that some of the semi revenue is projects related, and in those cases, we have some more visibility, long-term, because some of these projects may take time and they're large in size. For example, the recent win that we had in the PV solar, thin film PV solar cell manufacturing, it was a process of bidding on this project and resulted in a win that will give us new revenue for 2018 in the mid-teens of millions of dollars. So in that case, we have better visibility because the projects are clear and are visible. And we basically go through a process of design wins into this project. In term of the semi industry, a lot of the changes are based on basically, since we already did design into those applications and products, it's more about understanding the dynamic of the end-user and the impact on our customers. The short-term changes in volume and mix are driven by market trends, not very much by design wins. Design wins usually take 2 to 3 years to convert to mass production. So in a way, as I said earlier, we -- in some cases, we have good visibility for the industrial, and in some other cases, it's just like semi. So it's a mix. We -- from our advantage point right now, we believe that 2019 will be a growth year for us across-the-board from our advantage point. Semi, industrial and service and, obviously, as we continue to acquire, we expect to accelerate that through acquisitions.

我會說一些半收入是與項目相關的，在那些情況下，我們有更多的可見性，長期的，因為其中一些項目可能需要時間，而且規模很大。例如，我們最近在光伏太陽能、薄膜光伏太陽能電池製造方面的中標，這是該項目的投標過程，中標後將為我們 2018 年帶來數千萬的新收入美元。所以在那種情況下，我們有更好的可見性，因為項目是清晰可見的。我們基本上經歷了一個設計贏得這個項目的過程。就半導體行業而言，很多變化基本上都是基於，因為我們已經對這些應用程序和產品進行了設計，更多的是了解最終用戶的動態以及對我們客戶的影響。數量和組合的短期變化是由市場趨勢驅動的，而不是設計勝利。設計勝利通常需要 2 到 3 年才能轉化為大規模生產。所以在某種程度上，正如我之前所說，我們 - 在某些情況下，我們對工業有很好的知名度，而在其他一些情況下，它就像半。所以這是一個混合。我們 - 從我們現在的優勢點來看，我們相信 2019 年將是我們從我們的優勢點全面增長的一年。半導體、工業和服務，顯然，隨著我們繼續收購，我們希望通過收購來加速這一進程。

Okay, that's very helpful. And if I could just -- I had one clarification on a statement you made. I think, you said photonics-based products should go to over $100 million per year over 3 years. Wondering now if you could give us the split between what Advanced Energy sells into the photonics business. And is all of the LumaSense revenue photonics?

好的，這很有幫助。如果可以的話——我對你所做的聲明進行了一次澄清。我認為，你說基於光子學的產品應該在 3 年內達到每年 1 億美元以上。現在想知道您是否可以告訴我們 Advanced Energy 向光子學業務銷售的產品之間的差異。LumaSense 的所有收入都是光子學嗎？

No. We have a combination. Right now, we acquired LumaSense because it was very complementary to our own photonic-based product line. We have had a leading position in pyrometry for temperature measurement in semiconductor applications for many years. The product line nickname or brand name is Sekidenko. And Sekidenko was a very successful, very strategic product line for us because it's tightly aligned and connected to delivering of power into thermal applications. So Sekidenko, combined with LumaSense, will be about mid-$70 million of revenue now. And we expect to grow that business within 3 years to greater than $100 million a year in revenue. LumaSense is a company with huge potential that was not really realized. They were growing moderately profitable. I think their operating income was mid-teens in 2017. We believe that just like we did in other acquisition, we can accelerate their growth and accelerate their profitability.

不。我們有一個組合。現在，我們收購了 LumaSense，因為它與我們自己的基於光子的產品線非常互補。多年來，我們在半導體應用的溫度測量高溫計方面一直處於領先地位。產品線暱稱或品牌名稱是 Sekidenko。Sekidenko 對我們來說是一個非常成功、非常具有戰略意義的產品線，因為它與將電力輸送到熱應用中緊密結合併聯繫在一起。因此，Sekidenko 加上 LumaSense，現在的收入將達到 7000 萬美元左右。我們希望在 3 年內將該業務增長到每年超過 1 億美元的收入。LumaSense 是一家潛力巨大但尚未真正實現的公司。他們的利潤適度增長。我認為他們的營業收入在 2017 年處於十幾歲左右。我們相信，就像我們在其他收購中所做的那樣，我們可以加速他們的增長並加速他們的盈利能力。

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

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

Back in May, you guys increased the share buyback authorization by $50 million. And now that you're making clearly the largest acquisition in many years, I'm curious if the cash outflow to pay for LumaSense will have any impact on the pace of repurchases whether in the current quarter or beyond that?

早在 5 月份，你們就將股票回購授權增加了 5000 萬美元。現在你顯然正在進行多年來最大的收購，我很好奇用於支付 LumaSense 的現金流出是否會對當前季度或之後的回購速度產生任何影響？

Yes. It's a good question, Pavel. Our share buyback program, as you know, is an opportunistic program. We have been more active in that program. And in fact, as you -- as was noted, to date through the end of Q2, we've bought back about 600,000 shares of stock and spent a little over $38 million. If you look at actually through our earnings release stated in the 10-Q, we repurchased a little over 700,000 shares and spent about $47 million on stock. And since the program began, we've bought 2.9 million shares in about $126 million. So it's an active program for us. It's part of the 30% of cash flow that we've allocated to share buyback. And it may go up and down based on market conditions. But we believe we can do both acquisitions and share repurchases when it makes sense.

是的。這是個好問題，帕維爾。如您所知，我們的股票回購計劃是一個機會主義計劃。我們在該計劃中更加積極。事實上，正如你所指出的那樣，截至第二季度末，我們已經回購了大約 600,000 股股票，花費了超過 3800 萬美元。如果您實際查看我們在 10-Q 中發布的收益報告，我們回購了略多於 700,000 股股票，並在股票上花費了約 4700 萬美元。自該計劃開始以來，我們已經以大約 1.26 億美元的價格購買了 290 萬股股票。所以這對我們來說是一個活躍的計劃。這是我們分配給股票回購的 30% 現金流的一部分。它可能會根據市場情況上下波動。但我們相信，在合理的情況下，我們可以同時進行收購和股票回購。

Okay. One more on LumaSense and I respect the fact that you don't want to get into too much granularity, but in the past, you've talked about kind of a range of EBITDA multiples that you're targeting. Does this particular deal -- you haven't disclosed the EBITDA, but how do you think about the valuation metrics other than just, I guess, revenue?

好的。還有一個關於 LumaSense 的問題，我尊重這樣一個事實，即你不想過於細化，但在過去，你已經談到了你所瞄準的一系列 EBITDA 倍數。這個特別的交易——你沒有披露 EBITDA，但你如何看待除了收入之外的估值指標？

Yes, I think, Pavel, this would fall into what you would think it as a fairly normalized valuation. You know it's about 1.4x revenue. I think you'd find the EBITDA in sort of the 9 to 10 range based on trailing earnings. But I think the important point here is that, we believe that we're uniquely positioned to add a lot of value to this company because it's complementary to our products, it certainly expands our position in the industry markets and it's complementary to our industrial channels. It's also highly complementary to our semiconductor products, and we believe we can bring significant additional exposure to the semi market than they've been able to obtain on their own. And so we believe that, on a forward basis, there is a tremendous amount of value that can be generated from this -- from the combination of the 2 companies.

是的，我認為，Pavel，這將屬於您認為的相當正常的估值。你知道這大約是收入的 1.4 倍。我認為你會發現基於往績收益的 EBITDA 在 9 到 10 的範圍內。但我認為這裡的重點是，我們相信我們具有獨特的優勢，可以為這家公司增加很多價值，因為它與我們的產品互補，它肯定會擴大我們在行業市場的地位，並且與我們的行業渠道互補.它還與我們的半導體產品高度互補，我們相信我們可以為半導體市場帶來比他們自己所能獲得的更多的曝光。因此，我們相信，從長遠來看，這兩家公司的合併可以產生巨大的價值。

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

我們的下一個問題來自 SIG 的 Mehdi Hosseini。

A couple of follow-ups. When you look at all your semiconductor OEM inventory of your components, and hypothetically, how long can they use that inventory without coming back to you? And I understand, this is a hypothetical question, I'm not asking you about WFE, but I'm just thinking of a scenario where your customers would favor reducing their own inventory rather than procuring additional components. And I have a couple of follow-ups.

一些後續行動。當您查看所有半導體 OEM 組件庫存時，假設他們可以使用該庫存多長時間而不返回給您？我明白，這是一個假設性的問題，我不是在問你關於 WFE 的問題，但我只是在想一個場景，在這個場景中，你的客戶更願意減少他們自己的庫存，而不是採購額外的組件。我有幾個後續行動。

So Mehdi, as we discussed in the past, our relationship with our key customers is based on just-in-time basically contracts. And they pull our products when they need them. And we basically have inventory held for them, as Paul said earlier, with min-max levels that we need to maintain volume in inventory within these 2 levels of inventory for our customers. So when a customer decides to -- that they do not need -- when they need to decline or increase their pull rate, they would, in general, give us demand signal with kind of a heads-up about what their plans are, to make sure that we do not manufacture more than the upper level of the target inventory we need to or that we remain above the minimum level so we don't starve them for parts. So in general, we do not know exactly how much inventory they have in their production sites. All we know is how much they pull from our inventory, from our bins, as they plan their own manufacturing. Now we have enough demand indications and forecasting alignment meetings to know and understand, in general, which direction they're going into, which allows us to plan our manufacturing to make sure that we're between the min-max levels in the bins. Now in Q2, we got an early indication that there'll be a decline in the pull rate from our inventory, right, and what we did we basically decided to accommodate our customers' demand plan and to basically let it flow-through without increasing our shipments into the bins and increasing inventory too much.

所以邁赫迪，正如我們過去討論的那樣，我們與主要客戶的關係基本上是基於準時制合同。他們在需要時拉我們的產品。正如保羅之前所說，我們基本上為他們保留了庫存，我們需要為我們的客戶將庫存量維持在這兩個庫存水平內。因此，當客戶決定 - 他們不需要 - 當他們需要降低或增加他們的拉動率時，他們通常會向我們發出需求信號，並提醒我們他們的計劃是什麼，確保我們製造的數量不超過我們需要的目標庫存的上限，或者我們保持在最低水平以上，這樣我們就不會讓他們缺零件。所以一般來說，我們不知道他們的生產現場到底有多少庫存。我們所知道的只是他們在計劃自己的製造時從我們的庫存、我們的垃圾箱中提取了多少。現在我們有足夠的需求指示和預測對齊會議來了解和理解，一般來說，他們將進入哪個方向，這使我們能夠計劃我們的製造，以確保我們處於垃圾箱的最小-最大水平之間。現在在第二季度，我們得到一個早期跡象表明我們的庫存拉動率會下降，對吧，我們所做的基本上決定適應客戶的需求計劃，並且基本上讓它流過而不增加我們的貨物進入垃圾箱並增加了太多庫存。

Okay. Very insightful. So when I'm looking at your inventory in absolute dollar value about $110 million, which is a multi-year high, that inventory should trend down into the second half as you -- as your customers get back on track, specifically semiconductor customers?

好的。很有見地。因此，當我查看您的絕對美元價值約為 1.1 億美元的庫存時，這是多年來的最高水平，隨著您的客戶回到正軌，特別是半導體客戶，該庫存應該會下降到下半年？

Yes, that's absolutely right and there is a couple of reasons for that. Certainly, we -- the demand sell late in the quarter, we did not ship product to the semi industry as we had anticipated. And so we have some finished -- a little bit of finished goods, but also raw materials that have built up. That will all work its way through. It's all very current product and it's just timing. As you've all said, we were also staging inventory late in the quarter for this solar PV win, which is a different product. So we had those crosscurrents happen at the same time. I'd say, in addition, we had a couple other temporary things. We strategically tried to source some supply around some long lead items, which had been scarce in the industry. And in a particular item against which we bought some material to secure a long-term supply for that product. And so when you put that together, it kind of was a confluence of several factors, again, all of which will work themselves through over the next quarter or 2. So we fully expect inventory to decline from these levels because those investments are basically behind us.

是的，這是絕對正確的，並且有幾個原因。當然，我們 - 需求在本季度末銷售，我們沒有像我們預期的那樣將產品運送到半工業。所以我們有一些成品 - 一些成品，還有已經積累的原材料。這一切都會順利進行。這都是最新的產品，只是時機。正如你們所說的那樣，我們也在本季度末為這次太陽能光伏勝利準備了庫存，這是一種不同的產品。所以我們讓這些交叉流同時發生。我想說，此外，我們還有其他一些臨時的事情。我們在戰略上試圖圍繞一些在行業中稀缺的長鉛項目採購一些供應。在特定項目中，我們購買了一些材料以確保該產品的長期供應。因此，當你把它們放在一起時，它有點像是幾個因素的共同作用，同樣，所有這些因素都將在下一季度或第二季度自行解決。所以我們完全預計庫存會從這些水平下降，因為這些投資基本上落後了我們。

Okay. Very insightful. Two quick follow-ups. Just for a purpose of modeling and assuming that LumaSense acquisition will be closed by the end of Q3, should I assume that the incremental revenue contribution into the December could be in the $20 million to $30 million a quarter?

好的。很有見地。兩次快速跟進。僅出於建模目的並假設 LumaSense 收購將在第三季度末完成，我是否應該假設 12 月份的增量收入貢獻可能在每季度 2000 萬至 3000 萬美元之間？

No. The LumaSense did $60 million in 2017. Obviously, it'll take a little bit of time for us to gear up the channels, drive penetration into the semi markets and things like that. So I think at this point, there is not a lot of seasonality in that business. So you could look at a $60 million annualized rate as a good starting point, so that we haven't given any specific guidance on it.

不。LumaSense 在 2017 年的銷售額為 6000 萬美元。顯然，我們需要一點時間來完善渠道，推動對半市場的滲透等等。所以我認為在這一點上，該業務沒有太多的季節性。因此，您可以將 6000 萬美元的年化率視為一個很好的起點，因此我們沒有給出任何具體的指導。

So Mehdi, I want to clarify something. When I talk about our aspirational goal for the photonic business comprising of our own Sekidenko parameters and LumaSense products combined, we will -- we aspire to grow this business to more than $100 million a year within 3 years. But if you look at LumaSense right now, and this is not guidance, but if you look at last year, 2017, their revenue was approximately $60 million. So if you analyze that, you can make an assumption about December quarter.

所以邁赫迪，我想澄清一些事情。當我談到我們對由我們自己的 Sekidenko 參數和 LumaSense 產品組合組成的光子業務的理想目標時，我們將 - 我們渴望在 3 年內將這項業務增長到每年超過 1 億美元。但如果你現在看看 LumaSense，這不是指導，但如果你看看去年，2017 年，他們的收入約為 6000 萬美元。因此，如果您對此進行分析，則可以對 12 月季度做出假設。

Okay. And then, one final question, and just more of a bigger picture. Given the acquisitions that you have made, how should I think about your target that you provided earlier this year. You said your aspiration is to hit more than $1 billion of revenue with earnings of $550 million to $650 million. Looking at synergies between your semi and acquisitions and I'm just thinking about R&D, should I assume that at some point there would be synergies? And is that dialed into the $550 million to $650 million longer-term revenue target?

好的。然後是最後一個問題，以及更宏大的圖景。鑑於您進行的收購，我應該如何考慮您今年早些時候提供的目標。你說你的願望是收入超過 10 億美元，收入達到 5.5 億至 6.5 億美元。看看你的半成品和收購之間的協同作用，我只是在考慮研發，我是否應該假設在某個時候會有協同作用？這是否達到了 5.5 億至 6.5 億美元的長期收入目標？

Yes, that's a good question. I think if you look at the acquisitions we've done, which is now, essentially 4 acquisitions over the last 12 months. We have added somewhere in the neighborhood of $75 million to $100 million of revenue from -- on an annualized basis inorganically. That's against goal over the 3 years of $150 million to $200 million. So we think in the time frame, we're well on our way to achieving the inorganic part of that strategy with acquisitions that are highly complementary, leverage our core competencies and our structure. As we look at where the synergies come from, we believe a significant amount of that comes from additional growth. Again, in the case of LumaSense, we think we're uniquely positioned to take the scope of products that they offer and be able to offer them much more broadly and be able to drive increased revenue. We also expect to see some cost synergies as we have in our other acquisitions. Those won't primarily come from R&D, they'll primarily come from infrastructure as we leverage our broader channel base, our common systems, our broader footprint and see opportunities to consolidate some activities. That's where we'll see the operating synergies for the most part.

是的，這是個好問題。我想如果你看看我們已經完成的收購，現在基本上是過去 12 個月的 4 次收購。我們已經增加了大約 7500 萬美元到 1 億美元的收入——按年化計算。這與 3 年 1.5 億至 2 億美元的目標背道而馳。因此，我們認為在時間框架內，我們正在通過高度互補、利用我們的核心競爭力和結構的收購來實現該戰略的無機部分。當我們審視協同效應的來源時，我們相信其中很大一部分來自額外的增長。同樣，就 LumaSense 而言，我們認為我們具有獨特的優勢，可以利用他們提供的產品範圍，並能夠提供更廣泛的產品，並能夠推動增加收入。我們還希望看到一些成本協同效應，就像我們在其他收購中所做的那樣。這些不會主要來自研發，它們將主要來自基礎設施，因為我們利用我們更廣泛的渠道基礎、我們的通用系統、我們更廣泛的足跡，並看到整合一些活動的機會。這就是我們將在很大程度上看到運營協同效應的地方。

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

我們的下一個問題來自花旗銀行的 Amanda Scarnati。

Quickly remind us on your exposure to Tokyo Electron and what if any sort of business you have there?

快速提醒我們您對 Tokyo Electron 的了解，如果您在那裡有任何業務怎麼辦？

Amanda, to the extent we can talk about the customers, we are a supplier to Tokyo Electron. We are a partner at the Tokyo Electron. And we're working extremely closely with Tokyo Electron like with other semiconductor OEMs on future generation technologies and products that will allow the industry to have new solutions of plasma processes.

阿曼達，就我們可以談論的客戶而言，我們是 Tokyo Electron 的供應商。我們是 Tokyo Electron 的合作夥伴。我們與 Tokyo Electron 以及其他半導體原始設備製造商在下一代技術和產品方面的合作非常密切，這將使該行業擁有新的等離子工藝解決方案。

And then the last question I have. Most of everything I had was already asked in the call, but in terms of lead times. Have you seen any fundamental change in lead times over the past 6 months?

然後是我的最後一個問題。電話中已經詢問了我所擁有的大部分內容，但就交貨時間而言。在過去 6 個月中，您是否發現交貨時間有任何根本性變化？

In semiconductors, Amanda?

在半導體方面，阿曼達？

Yes.

是的。

In the supply chain, we have seen increases in lead times.

在供應鏈中，我們看到交貨時間有所增加。

In our supply chain, we have seen increase in lead time in some areas where I would say some passive components' lead times in the industry have grown, in some cases more than doubled or tripled. And this is one of the reasons that we have increased our inventory because of staging material we need to due to extended lead times. So in our supply chain, we saw increase in lead time, we did not have change in our lead time simply because of the fact that we operated just-in-time demand flow technology relationship with our key customers.

在我們的供應鏈中，我們看到一些領域的交貨時間有所增加，我想說一些無源元件在行業中的交貨時間已經增加，在某些情況下增加了一倍或三倍以上。這是我們增加庫存的原因之一，因為由於交貨時間延長，我們需要暫存材料。因此，在我們的供應鏈中，我們看到交貨時間有所增加，我們的交貨時間並沒有發生變化，僅僅是因為我們與主要客戶建立了即時需求流技術關係。

And then the last question I have, just on the traction on the acquisition target, I think you just answered a little bit of that. But how much of the -- what percentage of the acquisitions that you've done to date have been in semis versus non-semis? I believe the initial goal was to have the majority in the non-semis market. But I believe the last 2 acquisitions have been a little bit more heavily weighted towards semis. Could you just talk about that a little bit?

然後是我的最後一個問題，關於收購目標的牽引力，我想你只是回答了一點點。但是有多少 - 你迄今為止完成的收購中有多少是半成品與非半成品？我相信最初的目標是在非半導體市場佔據多數。但我相信最近兩次收購對半決賽的權重更大一些。你能稍微談談嗎？

Okay. So most of the acquisitions we made recently are non-semi. As I mentioned earlier, the LumaSense business, based on their 2017 revenue, is 75% industrial and 25% semi. Trek is a combination of semi and industrial. Monroe product line is a combination of mainly industrial. Excelsys is 50% medical equipment and 50% industrial. So if you look at the whole pie together, I would say we're 30% to 40% semi and the rest industrial and very, very diverse industrial.

好的。所以我們最近進行的大部分收購都是非半導體的。正如我之前提到的，LumaSense 業務，根據其 2017 年的收入，工業佔 75%，半導體佔 25%。Trek 是半工業和工業的結合。夢露的產品線是以工業為主的組合。Excelsys 是 50% 的醫療設備和 50% 的工業設備。所以如果你一起看整個餡餅，我會說我們有 30% 到 40% 是半成品，其餘的是工業和非常非常多樣化的工業。

And I'm showing no further questions at this time. I'd like to hand the call back to the management for any closing remarks.

我現在沒有進一步提問。我想將電話轉回給管理層，以徵求任何結束語。

Thanks everyone for joining us today. We are obviously at an inflection point right now in semi. Not a big surprise. Our expectations for the second half are in line with the rest of the industry. We are excited about the future. We see growth coming in 2019. And we accelerate that growth in our industrial, very high growth success that we do both organically and inorganically. Thank you so much for your questions today. Bye-bye.

感謝大家今天加入我們。顯然，我們現在正處於半決賽的轉折點。不足為奇。我們對下半年的預期與其他行業一致。我們對未來感到興奮。我們預計 2019 年將出現增長。我們加速了我們工業的增長，我們在有機和無機方面都取得了非常高的增長成功。非常感謝您今天提出的問題。再見。

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

女士們，先生們，感謝你們參加今天的會議。今天的節目到此結束。你們都可以斷開連接。大家，祝你有美好的一天。