Advanced Energy Industries Inc (AEIS) 2023 Q3 法說會逐字稿

Greetings. Welcome to Advanced Energy's Third Quarter 2023 Earnings Call. (Operator Instructions) Please note, this conference is being recorded. At this time, I'll turn the conference over to Edwin Mok, Marketing and Investor Relations. Mr. Mok, you may now begin.

問候。歡迎參加 Advanced Energy 2023 年第三季財報電話會議。 （操作員說明）請注意，本次會議正在錄製中。這次，我將把會議交給行銷和投資者關係部的 Edwin Mok。莫先生，您現在可以開始了。

Thank you, operator. Good afternoon, everyone. Welcome to Advanced Energy's Third Quarter 2023 Earnings Conference Call. With me today are Steve Kelley, our President and CEO; and Paul Oldham, our Executive Vice President and CFO. Before I begin, I'd like to mention that we will be participating in several investor conferences. If you have not seen our earnings press release and presentation, you can find them all on our website at ir.advancedenergy.com.

謝謝你，接線生。大家下午好。歡迎參加 Advanced Energy 2023 年第三季財報電話會議。今天與我在一起的有我們的總裁兼執行長 Steve Kelley；以及我們的執行副總裁兼財務長 Paul Oldham。在開始之前，我想提一下，我們將參加幾個投資者會議。如果您還沒有看過我們的收益新聞稿和簡報，您可以在我們的網站 ir.advancedenergy.com 上找到它們。

Let me remind you that today's call contains forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially and are not guarantees of future performance. Information concerning these risks can be found in our SEC filings. All forward-looking statements are based on management's estimates as of today, October 31, 2023, and the company assumes no obligation to update them.

讓我提醒您，今天的電話會議包含前瞻性陳述，這些陳述存在風險和不確定性，可能導致實際結果出現重大差異，並且不能保證未來業績。有關這些風險的資訊可以在我們向 SEC 提交的文件中找到。所有前瞻性陳述均基於截至今天（2023 年 10 月 31 日）管理階層的估計，本公司不承擔更新這些陳述的義務。

Any targets beyond the current quarter presented today should not be interpreted as guidance. On today's call, our financial results are presented on a non-GAAP financial basis unless otherwise specified. Excluded from our non-GAAP results are stock-based compensation, amortization acquisition-related costs, facility expansion and related costs, restructuring charges and unrealized foreign exchange gains or losses. A detailed reconciliation between GAAP and non-GAAP measures can be found in today's press release.

今天提出的當前季度以外的任何目標不應被解釋為指導。在今天的電話會議上，除非另有說明，我們的財務業績均以非公認會計準則財務基礎公佈。我們的非公認會計準則績效不包括股票薪酬、攤銷收購相關成本、設施擴建及相關成本、重組費用、未實現的外匯損益。公認會計原則和非公認會計原則措施之間的詳細調節可以在今天的新聞稿中找到。

With that, let me pass the call to our President and CEO, Steve Kelley.

接下來，請允許我將電話轉給我們的總裁兼執行長史蒂夫凱利 (Steve Kelley)。

Thanks, Edwin, and thanks to everyone for joining the call today. We delivered solid results in the third quarter, with earnings at the high end of our guidance range on slightly lower revenue. We delivered record operating cash flow of $73 million, benefiting from improved operating margin, effective inventory control measures and execution of our cost control initiatives.

謝謝埃德溫，也謝謝大家今天加入電話會議。我們在第三季取得了穩健的業績，收益處於我們指導範圍的高端，但收入略有下降。受益於營業利潤率的提高、有效的庫存控制措施以及成本控制計劃的執行，我們實現了創紀錄的 7,300 萬美元營業現金流。

In a more challenging demand environment, we continue to deliver solid profitability and cash flow. Our strong financial performance through the business cycle gives us the freedom to invest in new products and technologies as well as improvements in manufacturing efficiency. We expect that these investments will drive future revenue growth and market share gains. We continue to make great progress on the new product front.

在更具挑戰性的需求環境中，我們持續提供穩健的獲利能力和現金流。我們在整個商業週期中強勁的財務表現使我們能夠自由地投資新產品和技術以及提高製造效率。我們預計這些投資將推動未來的收入成長和市場份額的成長。我們在新產品方面繼續取得巨大進展。

Year-to-date, we have launched 19 new products across our markets. In addition, we have expanded our quick-turn customization activity, which enables us to quickly adapt our products to the particular needs of our customers. In our targeted markets, we are experiencing strong design win momentum in a variety of high-value applications. We continue to expect a record number of design wins in 2023, building a solid foundation for growth.

今年迄今為止，我們已在市場上推出了 19 種新產品。此外，我們還擴大了快速客製化活動，這使我們能夠快速調整我們的產品以滿足客戶的特定需求。在我們的目標市場中，我們在各種高價值應用中經歷了強勁的設計獲勝勢頭。我們繼續預計 2023 年設計獲勝數量將創歷史新高，為成長奠定堅實的基礎。

To improve our operational efficiency, we are working to optimize our factory footprint with the goal of consolidating nearly all of our manufacturing into highly efficient large-scale factories. As part of that ongoing effort, we are closing 2 smaller factories in the current quarter. This is in addition to the Shenzhen factory closure we completed last December. Last month, we broke ground for our new flagship factory in Thailand. Construction will start next year, and we expect the facility to ramp in 2025. This new Thailand factory, together with our large factories in the Philippines, Malaysia and Mexico, will provide the capacity to meet our future needs.

為了提高我們的營運效率，我們正在努力優化我們的工廠佔地面積，目標是將我們幾乎所有的製造業務整合到高效的大型工廠中。作為持續努力的一部分，我們將在本季關閉兩家較小的工廠。這是繼去年 12 月關閉深圳工廠之後的另一個舉措。上個月，我們在泰國的新旗艦工廠破土動工。施工將於明年開始，我們預計工廠將於 2025 年投產。這家新的泰國工廠與我們在菲律賓、馬來西亞和墨西哥的大型工廠一起，將提供滿足我們未來需求的產能。

Supply chain issues continue to abate and are no longer a significant constraint on revenue. There are still components with very long lead times, such as power MOSFETs, but we think that supply will catch up with demand in the coming months.

供應鏈問題持續減弱，不再是收入的重大限制。仍有一些組件的交貨時間很長，例如功率 MOSFET，但我們認為供應將在未來幾個月趕上需求。

Now I'll provide further color on each of our markets. In semiconductor, third quarter revenue increased sequentially to $185 million. We saw increased demand for RF products used in etch and deposition applications. In addition, we achieved record revenue for our high-voltage products, which are used primarily in ion implanters. Service revenue decreased sequentially due to lower fab utilization. For the year 2023, however, we expect to set a service revenue record based on our larger installed base and a richer menu of value-added services. We continue to work closely with our key customers to design in our next generation eVerest and eVoS platforms.

現在我將進一步介紹我們每個市場的情況。在半導體領域，第三季營收季增至 1.85 億美元。我們看到蝕刻和沈積應用中使用的射頻產品的需求不斷增加。此外，我們的高壓產品收入創紀錄，這些產品主要用於離子注入機。由於晶圓廠利用率下降，服務收入季減。然而，到 2023 年，我們預計將憑藉更大的安裝基礎和更豐富的增值服務菜單創下服務收入記錄。我們繼續與主要客戶密切合作，在我們的下一代 eVerest 和 eVoS 平台中進行設計。

We have received numerous orders for these recently launched platforms and are working hard to satisfy the near-term demands of our customers. We believe that eVerest and eVoS will enable our customers to more effectively overcome the technical challenges of sub 2-nanometer processes. These new technology platforms have the potential to drive meaningful revenue growth for many years to come.

我們已經收到了這些最近推出的平台的大量訂單，並正在努力滿足客戶的近期需求。我們相信，eVerest 和 eVoS 將使我們的客戶能夠更有效地克服亞 2 奈米製程的技術挑戰。這些新技術平台有潛力在未來許多年推動顯著的收入成長。

Moving to Industrial & Medical. Third quarter revenue was $115 million, down sequentially following several record quarters. Revenue came in slightly below our plan, due primarily to softer market conditions late in the quarter. We launched 5 new products into the industrial medical market, including the iHP Liquid, a fully sealed liquid cooled power supply, designed to operate in harsh manufacturing environments. In the industrial market, we secured notable design wins across robotics, factory automation and thin film manufacturing applications. Our medical design win activity was particularly strong in the third quarter with significant wins in diagnostic and therapeutic applications. In August, we launched the new Advanced Energy website, creating the content for this website was a company-wide effort, and we are pleased with the quality and ease of use of our new site.

轉向工業和醫療。第三季營收為 1.15 億美元，繼幾季創紀錄後連續下降。收入略低於我們的計劃，主要是由於本季末市場狀況疲軟。我們向工業醫療市場推出了 5 款新產品，其中包括 iHP Liquid，這是一款全密封液冷電源，專為在惡劣的製造環境中運作而設計。在工業市場，我們在機器人、工廠自動化和薄膜製造應用領域取得了顯著的設計勝利。我們的醫療設計獲勝活動在第三季度尤其強勁，在診斷和治療應用方面取得了重大勝利。八月份，我們推出了新的 Advanced Energy 網站，該網站的內容創建是全公司的努力，我們對新網站的品質和易用性感到滿意。

We expect the new website will enable us to reach a much wider cross-section of industrial and medical customers. In early 2024, we will add e-commerce capability to the website, providing another way for our customers to order and rapidly evaluate our products. Overall, we believe that our design win pipeline and improved go-to-market strategy should partially offset the potential impact of macroeconomic softening.

我們預計新網站將使我們能夠接觸到更廣泛的工業和醫療客戶。 2024 年初，我們將在網站上添加電子商務功能，為客戶訂購和快速評估我們的產品提供另一種方式。總體而言，我們認為我們的設計贏得管道和改進的進入市場策略應部分抵消宏觀經濟疲軟的潛在影響。

In data center computing, third quarter revenue increased sequentially to $68 million as expected. Strong revenue from the ramp of a hyperscale design win for AI applications offset lower sales to enterprise customers. Telecom and networking revenue decreased sequentially to $41 million, in line with our expectations.

在資料中心計算領域，第三季營收季增至 6,800 萬美元，符合預期。人工智慧應用超大規模設計獲勝帶來的強勁收入抵消了企業客戶銷售額的下降。電信和網路收入環比下降至 4,100 萬美元，符合我們的預期。

Now let me share a few closing thoughts. At the beginning of 2023, we expected that semiconductor revenues will be down year-on-year that the rest of our business will be flat to up. We also said that our semiconductor business would trough in the second quarter, largely how things have played out in 2023, despite a softer macroeconomic environment in the second half of the year.

現在讓我分享一些結束語。 2023年初，我們預計半導體收入將同比下降，而我們的其餘業務將持平到成長。我們也表示，儘管下半年宏觀經濟環境較為疲軟，但我們的半導體業務將在第二季陷入低谷，這在很大程度上與 2023 年的情況相同。

Looking forward, we will continue to move full speed ahead, executing the strategy we first articulated 2 years ago. New products and technologies, more aggressive go-to-market strategy and improved manufacturing efficiency will remain our primary areas of focus. With our recently completed convertible note offering, we have secured low-cost financing, which can potentially accelerate our growth. We continue to look for M&A opportunities, which make strategic and financial sense for the company. Leveraging a broad offering of highly differentiated products, a record number of design wins, improved manufacturing efficiency and a strong balance sheet, we believe that Advanced Energy is well positioned to grow faster than our markets. Paul will now provide detailed financial information.

展望未來，我們將繼續全速前進，執行我們兩年前首次製定的策略。新產品和新技術、更積極的上市策略以及提高的製造效率仍將是我們關注的主要領域。透過我們最近完成的可轉換票據發行，我們獲得了低成本融資，這可能會加速我們的成長。我們繼續尋找對公司具有策略和財務意義的併購機會。憑藉廣泛的高度差異化產品、創紀錄的設計獲勝數量、提高的製造效率和強大的資產負債表，我們相信 Advanced Energy 處於有利地位，能夠比我們的市場增長得更快。保羅現在將提供詳細的財務資訊。

Thank you, Steve, and good afternoon, everyone. Q3 was a quarter of solid execution with earnings that came in at the high end of our guidance on slightly lower revenue. We saw some demand softening late in the quarter, largely due to macroeconomic factors. However, actions we took to improve our operations and control discretionary spending enabled us to deliver sequentially higher gross and operating margins.

謝謝史蒂夫，大家下午好。第三季度是執行穩健的一個季度，由於收入略有下降，獲利處於我們指導的高端。我們看到本季末需求有所疲軟，這主要是由於宏觀經濟因素。然而，我們為改善營運和控制可自由支配支出而採取的行動使我們能夠實現連續更高的毛利率和營業利潤率。

Together with higher interest income and lower taxes, earnings increased 16% sequentially on 1% lower revenue. Importantly, operating cash flow was at the highest level ever for the company. Finally, with shortened lead times, customers are adjusting their order patterns, and our backlog came down to $514 million. We continue to expect our backlog will settle to a level of $400 million to $500 million by the end of the current quarter.

加上利息收入增加和稅收降低，收入環比減少 1%，收益環比增長 16%。重要的是，經營現金流處於公司有史以來的最高水準。最後，隨著交貨時間的縮短，客戶正在調整他們的訂單模式，我們的積壓訂單減少到了 5.14 億美元。我們仍然預計，到本季末，我們的積壓訂單將穩定在 4 億至 5 億美元的水平。

Overall, despite a softer demand environment, we believe the year is shaping up as we had expected. We are focused on driving new product activity and improving our cost structure while preparing for the next upturn.

總體而言，儘管需求環境較為疲軟，但我們相信今年的情況正如我們預期的那樣。我們專注於推動新產品活動並改善成本結構，同時為下一次經濟改善做好準備。

Now let's review our financial results in more detail. Total revenue was $410 million, down 1% sequentially and 21% from our peak quarter a year ago. Revenue in the semiconductor market was $185 million, up 7% quarter-over-quarter consistent with our view that Q2 was a near-term bottom. Revenue in the Industrial and Medical market was $115 million, down 10% from last quarter and 4% year-over-year.

現在讓我們更詳細地回顧一下我們的財務表現。總營收為 4.1 億美元，比上一季下降 1%，比去年同期的峰值下降 21%。半導體市場營收為 1.85 億美元，季增 7%，這與我們認為第二季近期觸底的觀點一致。工業和醫療市場的收入為1.15億美元，季減10%，年減4%。

Following several quarters of record results, Industrial and Medical saw some softening in demand late in the quarter. Looking forward, we expect incremental revenues from prior design wins to largely offset the impact of a sluggish macroeconomic environment in Q4.

在幾個季度取得創紀錄的業績之後，工業和醫療行業在本季末出現了需求疲軟的情況。展望未來，我們預期先前設計勝利帶來的增量收入將在很大程度上抵消第四季度宏觀經濟環境低迷的影響。

Data Center Computing revenue was up 16% sequentially to $68 million, due to the ramp of a hyperscale customer for AI applications. Sales declined 22% year-over-year, due to the cyclical downturn in the enterprise server market. Telecom and Networking revenue at $41 million, was down 36% sequentially and 3% year-over-year as we fulfilled overdue backlog.

由於人工智慧應用超大規模客戶的增加，資料中心運算收入較上季成長 16% 至 6,800 萬美元。由於企業伺服器市場週期性低迷，銷售額較去年同期下降22%。由於我們完成了逾期的積壓工作，電信和網路收入為 4,100 萬美元，季減 36%，年減 3%。

Q3 gross margin was 36.1%, up 50 basis points from Q2 on lower volume as we benefited from improved mix and lower material costs. Premiums we paid for critical components continued to taper. As costs from prior quarters rolled through inventory to the P&L, we expect to see the full benefits of lower premiums in the first half of 2024. We also continue to take actions to optimize our operations footprint and manufacturing efficiency.

第三季毛利率為 36.1%，比第二季成長 50 個基點，由於我們受益於產品組合的改善和材料成本的降低，銷售量下降。我們為關鍵零件支付的保費持續減少。隨著前幾季的成本透過庫存計入損益表，我們預計將在 2024 年上半年看到保費降低的全部好處。我們也將繼續採取行動優化我們的營運足跡和製造效率。

Consolidating capacity into larger, more efficient factories should contribute to higher gross margins over the course of 2024. Operating expenses were $97.3 million, down from last quarter. OpEx was below our guidance as we managed our cost structure and controlled discretionary spending. Q3 operating margin was 12.4%, up 50 basis points sequentially. Depreciation was $9.7 million, and our adjusted EBITDA was $61 million. Non-GAAP other income was $1.3 million, due to higher net interest income, partially offset by foreign exchange losses.

將產能整合到規模更大、效率更高的工廠應該有助於提高 2024 年的毛利率。營運費用為 9,730 萬美元，較上季有所下降。由於我們管理成本結構並控制可自由支配支出，因此營運支出低於我們的指導。第三季營業利益率為 12.4%，較上一季上升 50 個基點。折舊為 970 萬美元，調整後的 EBITDA 為 6,100 萬美元。由於淨利息收入增加，非 GAAP 其他收入為 130 萬美元，部分被外匯損失抵銷。

Looking forward, we expect our non-GAAP other income to be in the range of $3 million to $3.5 million for the next few quarters, given our level of cash and current interest rates. As a reminder, in the fourth quarter of 2022, we initiated a restructuring plan to optimize our manufacturing operations. We are on track to our plan and expect to see the benefits of our actions translating to better margins over the course of 2024.

展望未來，考慮到我們的現金水準和當前利率，我們預計未來幾季的非 GAAP 其他收入將在 300 萬美元至 350 萬美元之間。提醒一下，我們在 2022 年第四季度啟動了重組計劃，以優化我們的製造業務。我們正在按計劃實施，並期望看到我們的行動所帶來的好處在 2024 年轉化為更好的利潤。

Consistent with this plan, we recognized $5 million in restructuring costs in Q3 and expect to incur an additional $5 million to $8 million in the fourth quarter. Our non-GAAP tax rate was 7.2%, below our Q3 target of 17%, due to discrete benefits related to tax strategies we implemented this quarter to lower our tax rate. As a result of these strategies, we are now modeling our Q4 and 2024 GAAP and non-GAAP tax rate at around 16%. Third quarter EPS of $1.28 was at the high end of our guidance of $1.15 and above Q2 of $1.11, but down from $2.12 a year ago. If you apply our prior target tax rate of 17%, Q3 EPS would have been $1.15.

根據該計劃，我們在第三季確認了 500 萬美元的重組成本，並預計第四季將額外支出 500 萬至 800 萬美元。我們的非 GAAP 稅率為 7.2%，低於我們第三季 17% 的目標，這是由於我們本季實施的降低稅率的稅收策略帶來了離散收益。由於這些策略的實施，我們現在正在對第四季度和 2024 年 GAAP 和非 GAAP 稅率進行建模，稅率約為 16%。第三季每股收益 1.28 美元，處於我們指引值 1.15 美元的上限，高於第二季的 1.11 美元，但低於一年前的 2.12 美元。如果應用我們先前 17% 的目標稅率，第三季每股收益將為 1.15 美元。

Turning now to the balance sheet. Total cash and marketable securities at the end of the third quarter were $986 million and included approximately $482 million in net proceeds from transactions associated with our 2.5% convertible senior notes offering that we completed in September. Operating cash flow from continuing operations was a record $72.7 million. Excluding the convertible offering and related transactions, cash increased from $455 million to $504 million.

現在轉向資產負債表。第三季末的現金和有價證券總額為 9.86 億美元，其中包括 9 月完成的 2.5% 可轉換優先票據發行相關交易的淨收益約 4.82 億美元。持續經營業務產生的營運現金流達到創紀錄的 7,270 萬美元。不包括可轉換發行和相關交易，現金從 4.55 億美元增加到 5.04 億美元。

Net cash at the end of the third quarter was $66 million. Inventory decreased to $28 million, down 7% sequentially and 11% year-over-year, as actions to monetize on-hand inventory started to contribute to cash flow. As a result, inventory days decreased from 132 in Q2 to 125 in Q3 and turns improved from 2.7x to 2.9x. Days payable decreased 2 days sequentially to 48 days and DSO increased 3 days to 59 days. Net working capital was 136 days. CapEx was $13 million or 3.2% of sales and below our near-term target of approximately 4%.

第三季末的淨現金為 6,600 萬美元。由於現有庫存貨幣化行動開始為現金流做出貢獻，庫存減少至 2,800 萬美元，季減 7%，年減 11%。結果，庫存天數從第二季的 132 天減少到第三季的 125 天，週轉率從 2.7 倍提高到 2.9 倍。應付天數較上月減少 2 天至 48 天，DSO 增加 3 天至 59 天。淨營運資金為136天。資本支出為 1,300 萬美元，佔銷售額的 3.2%，低於我們約 4% 的近期目標。

We continue to expect our CapEx for this quarter and the next year to remain around 4% of sales, which includes the cost of our manufacturing consolidation plan and the investment in the new Thailand factory. During the quarter, we made debt principal payments of $5 million and paid $3.8 million in dividends. Finally, as part of the convertible note offering, we used $40 million to repurchase 370,000 shares of our common stock.

我們仍然預計本季和明年的資本支出將保持在銷售額的 4% 左右，其中包括我們的製造整合計劃的成本和對新泰國工廠的投資。本季度，我們支付了 500 萬美元的債務本金，並支付了 380 萬美元的股息。最後，作為可轉換票據發行的一部分，我們使用 4,000 萬美元回購了 370,000 股普通股。

Now let's turn to our guidance. Consistent with our commentary from last quarter, we expect that second half semiconductor revenue will be flat to up versus the first half. For our non-semiconductor markets in aggregate, we continue to expect 2023 revenue to grow slightly from last year with low double-digit growth in Industrial and Medical and Telecom and Networking, offset by cyclical weakness in Data Center.

現在讓我們轉向我們的指引。與我們上季度的評論一致，我們預計下半年半導體收入將與上半年持平或上升。對於我們的非半導體市場總體而言，我們繼續預計 2023 年營收將比去年小幅成長，其中工業和醫療以及電信和網路領域的兩位數成長將被資料中心的周期性疲軟所抵消。

However, looking forward, we expect Telecom and Networking revenues to continue to normalize towards $30 million a quarter over the next couple of quarters. As a result, we are forecasting our Q4 revenue at $405 million, plus/minus $15 million. We expect Q4 gross margin to be similar to Q3 on slightly lower volume. We expect Q4 operating expenses to be about flat with Q3 with timing of investments in new products, offset by other cost reductions. Based on a tax rate of 16%, we expect Q4 non-GAAP earnings per share to be $1.15, plus/minus $0.20.

然而，展望未來，我們預計未來幾季電信和網路收入將繼續正常化，達到每季 3,000 萬美元。因此，我們預計第四季營收為 4.05 億美元，上下浮動 1,500 萬美元。我們預計第四季的毛利率將與第三季相似，但銷量略有下降。我們預計第四季的營運支出將與第三季持平，因為新產品投資的時機被其他成本削減所抵銷。基於 16% 的稅率，我們預計第四季非 GAAP 每股收益為 1.15 美元，加/減 0.20 美元。

Let me make a few concluding comments. Overall, we are executing our plans for 2023. Our diversification strategy is enabling us to mitigate the impact of a sluggish macroeconomic environment and ongoing corrections in some of our markets. We continue to expect to perform better than our markets and significantly better than in previous semiconductor cycles.

讓我做一些總結性評論。總體而言，我們正在執行 2023 年的計劃。我們的多元化策略使我們能夠減輕宏觀經濟環境低迷和某些市場持續調整的影響。我們繼續期望表現優於我們的市場，並且明顯優於先前的半導體週期。

Looking forward to 2024, we expect semiconductor revenues to continue to bounce around these levels for the next few quarters, but are prepared for upside if the market recovers sooner. We expect performance in our other markets to be paced by macroeconomic factors, timing of customer orders in hyperscale and normalization of revenue levels in Telecom and Networking, all partially offset by opportunities for growth from new products and channel investments.

展望 2024 年，我們預計未來幾季半導體營收將繼續在這些水平附近反彈，但如果市場更快復甦，我們將為上漲做好準備。我們預計其他市場的業績將受到宏觀經濟因素、超大規模客戶訂單時間以及電信和網路收入水平正常化的影響，所有這些都被新產品和通路投資的成長機會所部分抵消。

In the meantime, we are focused on improving gross and operating margins while investing in critical programs to prepare for the next cyclical upturn. We believe our actions to control costs, improve operational efficiency and shift mix towards higher-margin products position the company to reach our long-term gross margin target of over 40%.

同時，我們專注於提高毛利率和營業利潤率，同時投資關鍵項目，為下一次週期性改善做好準備。我們相信，我們控製成本、提高營運效率以及轉向利潤率更高的產品組合的行動將使公司能夠實現超過 40% 的長期毛利率目標。

Finally, with solid operating cash flow and a strong cash position, we have financial flexibility and multiple paths to create value for our shareholders. With that, let's take your questions. Operator?

最後，憑藉穩健的營運現金流和強大的現金狀況，我們擁有財務靈活性和多種為股東創造價值的途徑。那麼，讓我們來回答你的問題。操作員？

(Operator Instructions) And our first question today comes from the line of Jim Ricchiuti with Needham & Company.

（操作員說明）今天我們的第一個問題來自 Needham & Company 的 Jim Ricchiuti。

I wanted to pursue the areas of the I&M business where you've seen some softness. I wonder if you could just maybe expand on that. And then conversely, just as you talk about some of the recent design win activity you've had there, where you see some pickup potentially offsetting some of this weakness?

我想從事 I&M 業務領域，在這些領域你會看到一些疲軟的情況。我想知道你是否可以對此進行擴展。相反，正如您談論最近在那裡進行的一些設計獲勝活動一樣，您認為一些可能彌補某些弱點的回升活動？

Yes, Jim, this is Steve. We saw a little bit of weakness in I&M towards the end of the quarter. We actually had orders to fulfill our forecast, but we weren't able to get the kits together in time to ship in Q3. And so what we're at now is more of a short lead time environment. So we don't have a long-term backlog like we did for much of the past year. And so it's really on us to try to scramble and meet the needs of our customers in the short term.

是的，吉姆，這是史蒂夫。我們在本季末看到 I&M 出現了一些疲軟。我們實際上有訂單來實現我們的預測，但我們無法及時組裝套件並在第三季度發貨。因此，我們現在所處的環境更像是交貨時間較短的環境。因此，我們沒有像去年大部分時間那樣出現長期積壓情況。因此，我們確實有責任在短期內努力滿足客戶的需求。

That said, looking at Q4, it will be about the same as Q3 for Industrial and Medical. As we look forward into 2024, again, it's a short lead time environment. So our visibility is somewhat more limited as we look into next year. And I think one of the nice things about I&M, or Industrial and Medical is that there are many different submarkets, each with their own dynamics, and some are up and others are down.

也就是說，第四季的工業和醫療產業與第三季大致相同。當我們展望 2024 年時，這仍然是一個較短的交付週期環境。因此，當我們展望明年時，我們的能見度會更加有限。我認為 I&M（工業和醫療）的好處之一是，有許多不同的子市場，每個子市場都有自己的動態，有些在上升，有些在下降。

What we see right now is probably the strongest verticals in I&M include the factory automation, the (inaudible) segment, solar and thin film, and on the medical side, therapeutic and diagnostic type applications. I think the weakest areas right now are probably test and measurement because that's tied into semiconductor and probably some of the horticulture applications have slowed down as well.

我們現在看到的可能是 I&M 中最強大的垂直領域，包括工廠自動化、（聽不清楚）部分、太陽能和薄膜，以及醫療方面的治療和診斷類型應用。我認為目前最薄弱的領域可能是測試和測量，因為這與半導體相關，而且可能一些園藝應用也已經放緩。

Maybe just a little more color on our Industrial and Medical. This is the one area where we sell a fair amount of product through distribution. So roughly 45% of our I&M business goes through distributors. And so we track that inventory and the resale information pretty closely. And I can tell you, as we exited Q3, we had a little less than 3 months of inventory in the channel, and that's a very comfortable place for us. And the resales have actually increased each quarter in 2023.

也許只是在我們的工業和醫療領域多一點色彩。這是我們透過分銷銷售大量產品的一個領域。因此，我們大約 45% 的 I&M 業務是透過經銷商進行的。因此，我們非常密切地追蹤庫存和轉售資訊。我可以告訴你，當我們退出第三季時，我們的通路庫存不足 3 個月，這對我們來說是一個非常舒適的地方。 2023 年每季的轉售量實際上都在增加。

So we think we're in pretty good shape in the distribution channel. The other thing I might just like to note is Industrial and Medical is a fairly new area for us, a new area to focus on, at least, and we've been doing it for the last 2 years. And I think it's making a difference. We're seeing some of the effort we put into it turn into wins and some of those wins have turned into revenue. And the other positive data point is on the customization side, which I mentioned during the call, we're seeing record turnover in the customization area. And so those 2 aspects where we put more focus on I&M and also doing more customization work to counteract any macroeconomic issues we face in the general market.

所以我們認為我們在分銷管道方面的狀況非常好。我想指出的另一件事是，工業和醫療對我們來說是一個相當新的領域，至少是一個值得關注的新領域，而且我們在過去兩年裡一直在這樣做。我認為這正在發揮作用。我們看到我們投入的一些努力轉化為勝利，其中一些勝利已經轉化為收入。另一個正面的數據點是在客製化方面，我在電話會議中提到，我們看到客製化領域的營業額創歷史新高。因此，我們在這兩個方面更加關注 I&M，並進行更多客製化工作，以應對我們在一般市場中面臨的任何宏觀經濟問題。

Got it. That's helpful color, Steve. My follow-up question, and I realize you're not going to be able to be very specific. But with respect to the M&A pipeline, how much activity are you seeing in the I&M area of the business? And if you were to maybe be a little bit more specific as to whether you see more opportunities or would prefer one area versus the other in terms of where you'd like to focus on the resources?

知道了。這是有用的顏色，史蒂夫。我的後續問題，我知道你不能說得很具體。但就併購管道而言，您在企業的 I&M 領域看到了多少活動？如果您想更具體地說明您是否看到更多機會，或者在您希望重點關注資源的方面，您是否更喜歡一個領域而不是另一個領域？

Yes. So first, let me just start with the general approach to M&A that we have, and then I'll zero-in on Industrial and Medical. So I think, first of all, we're fortunate that we're a consistent cash generator even in down cycles, we generate a lot of cash. So it gives us the ability to make strategic investments and to go on the hunt for acquisitions. So the types of targets we're looking for are going to be primarily in the Industrial and Medical space.

是的。首先，讓我從我們現有的併購的一般方法開始，然後我將把注意力集中在工業和醫療領域。所以我認為，首先，我們很幸運，即使在經濟下行週期，我們仍然是一個穩定的現金產生者，我們產生了大量現金。因此，它使我們有能力進行策略性投資並繼續尋找收購。因此，我們正在尋找的目標類型將主要集中在工業和醫療領域。

We're looking for targets that are a good strategic fit, that are clearly accretive from a financial standpoint and have a reasonable payback period. We look for companies with strong technology and/or a solid product portfolio, preferably with a significant percentage of revenue coming from sole-source products similar to our portfolio. And we look for long life cycle products and technologies.

我們正在尋找具有良好策略契合度的目標，從財務角度來看，這些目標具有明顯的增值性，並且具有合理的投資回收期。我們尋找擁有強大技術和/或可靠產品組合的公司，最好有很大比例的收入來自與我們的產品組合類似的單一來源產品。我們尋找長生命週期的產品和技術。

So within Industrial and Medical, we are looking for larger acquisitions, if possible. And we intend to integrate those acquisitions quickly, like we did last year with SL Power. I think that acquisition worked out pretty well for us, very complementary portfolios and helped us a lot in the medical area in particular. I think the biggest hurdles we're looking at now in M&A are just valuations. These valuations are influx. And so it'll probably take longer than we would expect to get a deal done.

因此，在工業和醫療領域，如果可能的話，我們正在尋求更大規模的收購。我們打算快速整合這些收購，就像我們去年對 SL Power 所做的那樣。我認為這次收購對我們來說效果很好，產品組合非常互補，特別是在醫療領域對我們幫助很大。我認為我們現在在併購中遇到的最大障礙只是估值。這些估值正在湧入。因此，達成交易所需的時間可能比我們預期的要長。

But I think the important thing to realize is we're not in a rush to make a deal. So we're going to maintain financial discipline. But we got nearly $1 billion sitting on our balance sheet. So we have a lot of dry powder, and I think we're an attractive acquirer.

但我認為重要的是要認識到我們並不急於達成協議。因此，我們將維持財務紀律。但我們的資產負債表上有近 10 億美元。所以我們有很多乾粉，我認為我們是一個有吸引力的收購者。

Our next question is from the line of Krish Sankar with TD Cowen.

我們的下一個問題來自 Krish Sankar 和 TD Cowen。

I have two of them. First one, maybe a two-part question on semi. Paul or Steve, you said semi revenues bounce on this level, so is it fair to assume flattish sequentially for December? And then along the same path, Steve, you mentioned that the semi revenue grew strong in ion implant, not dep and etch. And it seems like ion implant is more levered to mature technologies in silicon carbide. If that is true, can you help us understand how much of your semi revenue or even ion implant came from mature versus compound semi? And then I have a follow-up.

我有兩個。第一個，可能是關於半的兩部分問題。保羅或史蒂夫，您說過半成品收入在這個水平上反彈，那麼假設 12 月環比持平是否公平？然後沿著同樣的道路，史蒂夫，你提到半導體收入在離子注入方面增長強勁，而不是沉積和蝕刻。離子注入似乎更適合碳化矽的成熟技術。如果這是真的，您能否幫助我們了解您的半導體收入甚至離子注入有多少來自成熟半導體與複合半導體？然後我有一個後續行動。

Sure. I'll start, and you can finish Paul. So basically, what we see in the entire year Krish is there has been weakness in the etch and dep market. The overall volume has been weak, and that's well known. We've been able to offset some of that weakness in three ways. One was with our service business, which has been very robust this year. The second is with design wins, which have been ramping, And the third is in the high-voltage area. And your specific question about high voltage and where it's used? It is primarily ion implanters. And to the best of my knowledge, the vast majority of that is going for mature technologies. Silicon carbide as well as silicon technologies, it's there to meet the surge for high-voltage technologies or for EVs and other types of applications. So that's about where we stand with high voltage.

當然。我來開始，你來完成保羅。所以基本上，我們在 Krish 全年看到的是蝕刻和沈積市場一直很疲軟。整體成交量疲軟，這是眾所周知的。我們已經能夠透過三種方式彌補一些弱點。其中之一是我們的服務業務，今年非常強勁。第二個是設計勝利，其數量一直在增加，第三個是在高壓領域。您關於高電壓及其使用場合的具體問題是什麼？它主要是離子注入機。據我所知，其中絕大多數都用於成熟技術。碳化矽以及矽技術，可滿足高壓技術或電動車和其他類型應用的突波需求。這就是我們在高壓方面的立場。

Yes. I guess more broadly, what we said is that we still expected that semiconductor would be flat to up a little for the second half versus the first half. So you can kind of take a look at the math there. But yes, I think bouncing around these levels, I think, is accurate. If you look at that math, you're probably flat or up a little bit in Q4. And look, as we've talked with our customers, I think they've generally said they expect business to be about flat as we look into 2024.

是的。我想更廣泛地說，我們所說的是我們仍然預計半導體下半年將與上半年持平或小幅上漲。所以你可以看一下那裡的數學。但是，是的，我認為在這些水平上跳躍是準確的。如果你看一下數學，你可能會在第四季度持平或略有上升。看，當我們與客戶交談時，我認為他們普遍表示，預計 2024 年業務將持平。

But at the same time, we've worked hard to be, I'll say, financially prudent in terms of how we planned our business, but also be operationally prepared because we realize that when the semiconductor starts to turn, it can turn quickly. And so we're prepared if we see the business start to rebound more quickly over the course of next year.

但同時，我會說，我們在規劃業務方面努力保持財務審慎，但也在營運上做好準備，因為我們意識到，當半導體開始轉動時，它可以快速轉動。因此，如果我們看到業務在明年開始更快地反彈，我們就會做好準備。

Got it. Got it. That's very helpful. And then a follow-up on Data Center. Obviously, the Data Center revenues grew nicely like 15% Q-o-Q, but it's still down 22% on a year-over-year basis. I think, Steve, you mentioned as 1 hyperscaler customer is ramping for AI. So I'm just kind of curious, was the incremental $10 million revenue largely driven by that 1 customer? Are you sole-sourced? Or is it still like multi-sourced? And kind of like what is your strategy on a go-forward basis? Because a year ago, if I'm correct, maybe the terminology is too exaggerated, but you kind of deemphasize hyperscalers and focus on I&M? So is there a new renewed focus on Data Center?

知道了。知道了。這非常有幫助。然後是資料中心的後續內容。顯然，資料中心收入較上季成長了 15%，但年比仍下降了 22%。我想，史蒂夫，你提到 1 個超大規模客戶正在大力採用人工智慧。所以我只是有點好奇，1000 萬美元的增量收入主要是由該 1 個客戶推動的嗎？你們是獨家採購的嗎？或者它仍然是多源的嗎？有點像你的未來策略是什麼？因為一年前，如果我是對的，也許這個術語太誇張了，但你有點不強調超大規模並專注於 I&M？那麼，資料中心是否得到了新的關注？

Yes, that's a good question. And let me just -- it's a multipart question, so I'll give you a multipart answer. So first of all, yes, it's a soft environment today from a demand standpoint and data center. But we do have this sole-sourced design win, which we touched on last call as well as this call, and that's been ramping and has acted as a shock absorber basically. So we're not seeing the degree of correction that some others may be because of this ramping design win.

是的，這是一個好問題。讓我——這是一個由多個部分組成的問題，所以我會給你一個由多個部分組成的答案。首先，是的，從需求和資料中心的角度來看，現在是一個軟環境。但我們確實贏得了這個獨家設計的勝利，我們在上次電話會議和這次電話會議中都談到了這一點，而且它一直在增加，基本上起到了減震器的作用。因此，我們沒有看到其他一些人可能因為這種斜坡設計的勝利而進行的修正程度。

I think this is a cyclical market. We don't know exactly when the demand is going to snap back. But if history is any guide, could snap back as soon as first half '24. Because the last time we went through this inventory digestion, it took us about 3 quarters to get through it. So we're ready for a snapback in the Data Center market. We think the fundamentals are great. Still a lot of data being generated and transmitted and stored.

我認為這是一個週期性市場。我們不知道需求何時會回升。但如果以史為鑑的話，最快可能會在 24 年上半年恢復。因為上次我們進行這個庫存消化，我們花了大約3個季度的時間才完成。因此，我們已經準備好迎接資料中心市場的反彈。我們認為基本面很好。仍有大量資料正在產生、傳輸和儲存。

So the long-term story is very strong. We think there are a couple of accelerators next year, one is AI, of course. The second is the transition to 48 volts. So we think there's some positives on the horizon for Data Center, but our strategy remains unchanged. We're still going after opportunities where we can get paid for the engineering value that we provide. And so again, we're trying to keep our margins going up and to the right, and we're not as concerned about revenue growth in Data Center.

所以長期的故事是非常有力的。我們認為明年會有幾個加速器，其中之一當然是人工智慧。第二個是過渡到 48 伏特。因此，我們認為資料中心即將出現一些正面因素，但我們的策略保持不變。我們仍在尋找可以透過我們提供的工程價值獲得報酬的機會。同樣，我們正在努力保持利潤率的上升和向右增長，並且我們並不擔心資料中心的收入成長。

Your next question is from the line of Steve Barger with KeyBanc Capital Markets.

您的下一個問題來自 KeyBanc Capital Markets 的 Steve Barger。

You talked about inventory being in good shape in the channel. But can you expand on your comment about having a more aggressive go-to-market strategy and tie that into the efforts to cultivate distribution and VAR relationships? It seems like that will be an important force multiplier if end markets do get a little bit weaker going forward.

您談到渠道中的庫存狀況良好。但您能否詳細闡述您關於採取更積極的進入市場策略並將其與培養分銷和 VAR 關係的努力相結合的評論？如果終端市場未來確實變得有點疲軟，這似乎將成為一個重要的力量倍增器。

Yes, Steve, I think we've done a lot on the go-to-market strategy. Let me just list some of the things that we're doing that are, I think, most important. The first is probably our website. We launched the new website in August, and it's been a big hit with our customers and our distributors. If we take a look at some of the statistics, today, we're seeing roughly double number of hits on a daily basis on our website. And we've tripled the number of customers who are downloading and interacting with the website, typically downloading data sheets or application notes.

是的，史蒂夫，我認為我們在進入市場策略方面做了很多工作。讓我列出一些我認為最重要的我們正在做的事情。第一個可能是我們的網站。我們在八月推出了新網站，受到了我們的客戶和經銷商的熱烈歡迎。如果我們看一些統計數據，今天我們會看到我們網站上每天的點擊量大約翻倍。我們將下載網站並與之互動（通常是下載資料表或應用程式說明）的客戶數量增加了兩倍。

So we're very happy with that, and then let me add the e-commerce capability next quarter. It does going to help us as a company, it's also going to help our distributors as well. And so that's a big plus. The second big thing we did was on the sales side, where we basically split our sales force into two parts. And one of those parts is focused exclusively on Industrial and Medical.

所以我們對此非常滿意，然後讓我在下個季度添加電子商務功能。它確實會對我們公司有所幫助，也會對我們的經銷商有所幫助。所以這是一個很大的優勢。我們做的第二件大事是在銷售方面，我們基本上將銷售隊伍分成兩個部分。其中之一專門專注於工業和醫療。

So those people, the apps engineers and the sales engineers only get paid on Industrial and Medical design wins and revenue. So it's been -- it's brought a tremendous amount of focus to our effort, not just through distributors, but also directly with customers. So that's been a big plus for the company.

因此，這些人、應用程式工程師和銷售工程師只能根據工業和醫療設計的勝利和收入獲得報酬。因此，它為我們的努力帶來了極大的關注，不僅透過經銷商，還直接與客戶合作。所以這對公司來說是一個很大的優勢。

And thirdly, I think we've raised our game in the marketing communications area and our ability to train our distributors and sales force and how to sell our product and how they fit from a customer standpoint. So I think we're in much better shape than were 2 years ago.

第三，我認為我們在行銷傳播領域提高了我們的水平，提高了我們培訓經銷商和銷售人員的能力，以及如何銷售我們的產品以及它們如何從客戶的角度出發的能力。所以我認為我們的狀況比兩年前好多了。

I'll just add to that, Steve. I think our prepared comments were such that we think the inventory and the distribution channel is about right. But we've actually seen more sell-through. And you're right, as market forces potentially weaken, getting broader reach is one of our primary strategies and the distribution channel is certainly a key part of that. And there's even potential for us to expand further from a distribution channel perspective as we focused on that.

我只想補充一點，史蒂夫。我認為我們準備好的評論是這樣的，我們認為庫存和分銷管道是正確的。但我們實際上看到了更多的銷售。你是對的，隨著市場力量可能減弱，擴大影響力是我們的主要策略之一，而分銷管道無疑是其中的關鍵部分。當我們專注於此時，我們甚至有可能從分銷管道的角度進一步擴展。

Got it. And Paul, backlog is down about 50% year-over-year to $514 million, which I think is at the high end of what you consider a more normal range. Can you talk through segment exposure in backlog, timing of delivery? And maybe talk through book-to-bill for Semiconductor and Industrial and Medical?

知道了。保羅，積壓訂單比去年同期下降了約 50% 至 5.14 億美元，我認為這處於您認為更正常範圍的高端。您能談談積壓訂單中的細分市場暴露情況以及交貨時間嗎？也許還可以討論一下半導體、工業和醫療領域的訂單到帳單？

Yes. So you're right. The backlog is down. Frankly, the backlog we had a year ago is extremely unusual. If you go back historically before the part shortages we saw, roughly 24 to 30 months ago, we would typically carry backlog that was 60% of quarterly revenue. And that's because a lot of our products are relatively short-lead times, and we have many customers who don't technically give us orders. So there's not really a book-to-bill because we fill revenue through jet bins or through hub pulls.

是的。所以你是對的。積壓已減少。坦白說，我們一年前的積壓情況非常不尋常。如果你回顧我們看到的零件短缺之前的歷史，大約是 24 到 30 個月前，我們的積壓訂單通常佔季度收入的 60%。這是因為我們的許多產品的交貨時間相對較短，而且我們有很多客戶在技術上並沒有給我們下訂單。因此，並不存在真正的訂單到帳單，因為我們透過噴射機垃圾箱或透過樞紐拉動來填充收入。

And we'd expect to move back towards that situation, and that's exactly what's happening. I think by the end of this Q4, we'll be back well within that $400 million to $500 million range. About $400 million is about a quarter's worth of backlog. That's probably a quarter or quarter plus is kind of probably where things will run, probably a little more than they did historically. So we think the contraction in backlog is pretty natural, and it mainly just reflects those shorten lead times and people returning to their normal ordering patterns.

我們預計會回到那種情況，而這正是正在發生的事情。我認為到第四季末，我們將完全回到 4 億至 5 億美元的範圍內。約 4 億美元相當於積壓訂單的四分之一。事情可能會持續四分之一或四分之一以上，可能比歷史上的情況多一點。因此，我們認為積壓的減少是很自然的，這主要反映了交貨時間的縮短和人們恢復正常的訂購模式。

From that perspective, if you look at what's in backlog, the majority of it is relatively short orders now, I'd say, within a quarter-and-half or less. It's also still heavily weighted towards Industrial and Medical and Semiconductor. And as we look forward, again, it's hard to say a particular book-to-bill because many of our customers don't order that way.

從這個角度來看，如果你看看積壓的訂單，我想說，現在大部分訂單都相對較短，在四分之一半或更短的時間內。它仍然偏重於工業、醫療和半導體。當我們展望未來時，再次很難說出具體的訂單到帳單，因為我們的許多客戶並不以這種方式訂購。

Our next question is from the line of Mehdi Hosseini with SIG.

我們的下一個問題來自 SIG 的 Mehdi Hosseini。

Paul, I just want to go back to the backlog. When I look at commentary by some of your customers in industrial and semi, it seems like they don't really have a whole lot of visibility looking into calendar year '24. And as such, could there be a scenario where your backlog would actually move towards the low end of that $400 million to $500 million band?

保羅，我只想回到積壓的問題。當我查看一些工業和半成品客戶的評論時，他們似乎對 24 日曆年並沒有真正的了解。因此，是否會出現這樣的情況：您的積壓訂單實際上會向 4 億至 5 億美元區間的低端移動？

Yes, I think it could. Again, our estimate there is a little bit of a -- based on market factors and where things could end up. Historically, we've run under that level and that would be normal. So I think as customers move back to more normalized patterns, we could certainly move towards the low end of that. That wouldn't be a surprise. Again, that would still be about a quarter's worth of backlog, which should be higher than the historical norm.

是的，我認為可以。同樣，我們的估計有一點——基於市場因素和事情可能的結果。從歷史上看，我們一直在這個水平下運行，這很正常。因此，我認為，隨著客戶回歸更加標準化的模式，我們當然可以走向低端。這並不奇怪。同樣，這仍然是大約四分之一的積壓，這應該高於歷史正常水平。

Okay. And then just double-clicking on your semi business. If your customers are right now think -- elaborate or talking about 2024 as a flat in terms of the system shipment or system revenue compared to '23, does that imply that just some inventory refresh of components would lead to some growth in Advanced Energy's Semiconductor business unit?

好的。然後只需雙擊您的半業務即可。如果您的客戶現在認為 - 詳細說明或談論 2024 年系統出貨量或系統收入與 23 年相比持平，這是否意味著僅對組件進行一些庫存更新就會導致 Advanced Energy 半導體的一些增長業務單位？

Yes, I think that's a fair scenario, Mehdi. Like you said, the customer consensus seems to be that their end customer shipments will be roughly flat year-on-year. But we do see some room for growth in the jet bins and we see some room for growth in our new products as well. And that should push us into slight growth year-on-year.

是的，我認為這是一個公平的場景，邁赫迪。正如您所說，客戶的共識似乎是他們的最終客戶出貨量將與去年同期大致持平。但我們確實看到了噴射機箱的一些成長空間，我們也看到了我們的新產品的一些成長空間。這應該會推動我們實現年比小幅成長。

(Operator Instructions) The next question is from the line of Mark Miller with Benchmark.

（操作員說明）下一個問題來自 Benchmark 的 Mark Miller。

You talked about the implant was driving your high-voltage opportunity. In the last couple of weeks, there's been concern about slowing in the EV market. EV sales in China this past quarter were down 27% sequentially. Are you seeing any slowing of quoting activity or orders as a result of this? Ford also delayed its capacity additions because of slowness.

您談到植入物正在推動您的高壓機會。過去幾週，人們一直擔心電動車市場放緩。上一季中國電動車銷量較上季下降 27%。您是否發現報價活動或訂單因此而放緩？由於進展緩慢，福特也推遲了產能增加。

Yes. Mark, the short answer is no, we have not seen that. So right now, our backlog is still very robust, very strong. And we're not getting any signals yet from our customers that they're going to bring the forecast downward.

是的。馬克，簡短的回答是否定的，我們還沒看到這一點。所以現在，我們的積壓訂單仍然非常強勁。我們還沒有從客戶那裡得到任何他們將下調預測的訊號。

Next question, Telecom, are any of your customers dealing with an inventory digestion situation?

下一個問題，電信，您的客戶是否正在處理庫存消化？

And your question was specific to Telecom?

您的問題是針對電信的嗎？

Correct.

正確的。

Or just in general?

還是只是一般情況下？

Just Telecom.

只是電信。

Just Telecom.

只是電信。

I'm not aware that they're dealing with a lot of inventory, but it's also clear if you look at the telecom manufacturers, they're in a pretty severe down cycle right now. So I don't think there's a lot of inventory overhang there. But also, there's not a lot of orders. It's one of the reasons we talked in our prepared remarks about that we would anticipate that our Telecom and Network business is continuing to trend back towards a $30 million run rate versus where it's ran the last -- most of the last year.

我不知道他們正在處理大量庫存，但如果你看看電信製造商，你也很清楚，他們現在正處於相當嚴重的衰退週期。所以我認為那裡沒有太多庫存積壓。但同時，訂單也不多。這是我們在準備好的評論中談到的原因之一，我們預計我們的電信和網路業務的運行率將繼續回升至 3000 萬美元，而去年的大部分時間都是如此。

The next question is from the line of Pavel Molchanov with Raymond James.

下一個問題來自 Pavel Molchanov 和雷蒙德·詹姆斯 (Raymond James)。

We're talking about all of the macroeconomic headwinds in a lot of the verticals. But you also said that valuation prospective M&A are too expensive. From the perspective of the sellers who are insisting on these high-deal model, what are they looking at?

我們正在談論許多垂直領域的所有宏觀經濟阻力。但您也說，預期併購的估值太貴了。從堅持這些高價模式的賣家角度來看，他們看中的是什麼？

I can only comment for Advanced Energy. And I think valuations have adjusted over the past 1.5 years. And I think different parties adjust the new valuation at different rates. And I think that's going to -- I think the answer to your question is going to vary depending on which target we're talking about. But we think over the next 6 to 12 months, we'll probably be able to come to a deal with one or more of these targets. But again, it's going to depend on if it makes financial sense for Advanced Energy and strategic sense for the company.

我只能對先進能源發表評論。我認為過去 1.5 年估值已經調整。我認為不同的各方以不同的速度調整新的估值。我認為，我認為你的問題的答案將根據我們所討論的目標而有所不同。但我們認為，在接下來的 6 到 12 個月內，我們可能能夠就其中一個或多個目標達成協議。但同樣，這將取決於這對 Advanced Energy 是否具有財務意義以及對該公司是否具有戰略意義。

Right. You also mentioned that for M&A, you're looking for kind of chunkier deal sizes versus maybe what you would consider historically. If Artesyn was the largest M&A deal in the company's history, compared to that, are you looking to do something even larger?

正確的。您還提到，對於併購，您正在尋找更大的交易規模，而不是您過去考慮的交易規模。如果雅特生科技是公司史上最大的併購交易，那麼相較之下，您是否打算做一些更大的事情？

I think it's one of our goalpost, I would say, SL Power would be the smallest kind of deal we would like to do in I&M and Artesyn would be the largest type of deal. So it's going to be somewhere in between those two goalposts.

我認為這是我們的目標之一，我想說，SL Power 將是我們在 I&M 中想做的最小類型的交易，而 Artesyn 將是最大類型的交易。所以它將位於這兩個球門柱之間的某個位置。

Okay. That's interesting. And lastly, within Industrial and Medical, I periodically ask this question, more and more headlines about new solar manufacturing, not just in the United States, but more broadly outside of China. Can you talk about your opportunities in that infrastructure build-out?

好的。那很有意思。最後，在工業和醫療領域，我定期問這個問題，越來越多的關於新型太陽能製造的頭條新聞，不僅在美國，而且在中國以外更廣泛。您能談談您在基礎設施建設方面的機會嗎？

Yes. I think in solar, our primary opportunity is probably in the plasma space where many of these solar cells, solar panels need extremely precise thin layers of various things deposited on flat service. And this is an ideal type of application for plasma. And so we provide basically RF solutions for Intel manufacturers, which includes solar.

是的。我認為在太陽能領域，我們的主要機會可能是在等離子體空間，其中許多太陽能電池、太陽能板需要在平坦的服務上沉積各種極其精確的薄層。這是等離子體的理想應用類型。因此，我們為英特爾製造商提供基本的射頻解決方案，其中包括太陽能。

Ladies and gentlemen, this will conclude today's conference call. You may disconnect your lines at this time, and thank you for your participation.

女士們、先生們，今天的電話會議到此結束。此時您可以斷開線路，感謝您的參與。