Advanced Energy Industries Inc (AEIS) 2024 Q1 法說會逐字稿

Welcome to Advanced Energy first-quarter 2024 earnings conference call. With me today are Steve Kelley, our President and CEO; and Paul Oldham, our Executive Vice President and CFO.

歡迎參加 Advanced Energy 2024 年第一季財報電話會議。今天陪同我的是我們的總裁兼執行長史蒂夫凱利，以及我們的執行副總裁兼財務長保羅奧爾德姆。

You can find our earnings press release and presentation on our website at ir.advancedenergy.com. Let me remind you that today's call contains forward-looking statements. They are subject to risks and uncertainties that could cause actual results to differ materially and are not guarantees of future performance.

您可以在我們的網站ir.advancedenergy.com上找到我們的獲利新聞稿和簡報。請注意，今天的電話會議包含前瞻性陳述。它們存在風險和不確定性，可能導致實際結果與預期結果有重大差異，並且不保證未來的績效。

Information concerning these risks can be found in our SEC filings. All forward-looking statements are based on management's estimates as of today, May 1, 2024, and the company assumes no obligation to update them. Any targets beyond the current quarter presented today should not be interpreted as guidance.

有關這些風險的資訊可以在我們提交給美國證券交易委員會的文件中找到。所有前瞻性陳述均基於管理階層截至 2024 年 5 月 1 日的估計，本公司不承擔更新這些陳述的義務。今天提出的任何超出當前季度的目標都不應被解讀為業績指引。

On today's call, our financial results are presented on a non-GAAP financial basis unless otherwise specified. Excluded from non-GAAP results are stock compensation, amortization, acquisition-related costs, restructuring and impairment charges, and unrealized foreign exchange gains or losses.

除非另有說明，本次電話會議中，我們的財務表現均以非GAAP財務報表形式呈現。非GAAP業績不包括股票補償、攤提、收購相關成本、重組和減損費用以及未實現的匯兌損益。

A detailed reconciliation between GAAP and non-GAAP measures can be found in today's press release. With that, let me pass the call to our President and CEO, Steve Kelley.

今天的新聞稿中提供了 GAAP 指標與非 GAAP 指標的詳細比較。接下來，我將把電話交給我們的總裁兼執行長史蒂夫凱利。

Thanks, Edwin. Good afternoon, everyone, and thanks for joining the call. We had a challenging first quarter, although semiconductor revenue was stronger than expected revenue in our other markets was weaker than forecasted.

謝謝你，埃德溫。各位下午好，感謝各位參加本次電話會議。我們第一季面臨挑戰，雖然半導體收入強於預期，但其他市場的收入卻弱於預期。

We believe that our revenue shortfall was due largely to pockets of inventory, which developed at OEMs and distributors after supply chain constraints were resolved towards the end of 2023. Although we expected inventory correction, we underestimated its magnitude.

我們認為，收入短缺主要是由於 OEM 和分銷商在 2023 年底供應鏈限制解決後出現的庫存積壓造成的。雖然我們預料到庫存會進行調整，但我們低估了調整的幅度。

Despite these issues, we were still able to achieve our gross margin target and deliver earnings within our guidance range. Our outlook for the remainder of 2024 is more encouraging than the second quarter.

儘管存在這些問題，我們仍然實現了毛利率目標，並達到了預期的獲利範圍。我們對 2024 年剩餘時間的展望比第二季更樂觀。

We expect revenue to rebound sequentially, driven mostly by strength in the data center computing market. We also expect to grow in the second half of the year as semiconductor revenue gradually improves. The industrial medical market begins to normalize in the data center computing market continues to strengthen.

我們預計營收將環比反彈，主要受資料中心運算市場強勁成長的推動。隨著半導體收入逐步改善，我們預計下半年業績也將成長。工業醫療市場開始趨於正常化，而資料中心運算市場則持續走強。

Although we are carefully controlling spending, we continue to invest in R&D. We are moving full speed ahead, bringing new products and technologies to our customers. Our design win pipeline has never been stronger, and we expect to make meaningful share gains as market conditions improve.

儘管我們嚴格控制支出，但我們仍繼續投資研發。我們正全速前進，為客戶帶來新產品和新技術。我們的設計訂單儲備從未如此充足，隨著市場狀況的改善，我們預計能夠取得顯著的市佔率成長。

On the manufacturing front, we are executing our consolidation plan taking advantage of lower factory loading to speed, product transfers and qualifications. We expect these efforts to benefit gross margin beginning in the second half of 2024 as lower manufacturing costs start to flow through our P&L. We are operating in a dynamic environment this year.

在生產製造方面，我們正在執行整合計劃，利用工廠負載降低來加快生產速度、產品轉移和資格認證。我們預計，隨著製造成本降低，這些努力將從 2024 年下半年開始提高毛利率，並反映在我們的損益表中。今年我們身處在一個瞬息萬變的環境。

So we need to remain nimble, able to respond quickly to upside demand to do that we are maintaining strategic piece parts inventory as well as appropriate factory staffing levels. In addition, we plan to build some finished goods inventory to take advantage of opened manufacturing capacity.

因此，我們需要保持靈活，能夠快速回應不斷增長的需求，為此，我們正在維持戰略零件庫存以及適當的工廠人員配備水準。此外，我們計劃建立一些成品庫存，以充分利用開放的生產能力。

Now I'll provide some color on each of our markets. First quarter semiconductor revenue was slightly better than expected, helped by growth in value-added services.

現在我將詳細介紹我們各個市場的情況。受增值服務成長的推動，第一季半導體營收略優於預期。

On the design win front, I'm pleased to report that we have secured our first major wins for both the Bose and Everest next-generation plasma power products. Over the course of this year, we expect to announce more major design wins, which we believe will drive share gains in the coming years. We have already shipped more than 50 E., Bose and EVEREST systems and customers have requested that we shipped another 150 systems before year end.

在設計方面，我很高興地宣布，我們已經為 Bose 和 Everest 的下一代等離子電源產品贏得了第一個重大訂單。今年，我們預計將宣布更多重大設計項目，我們相信這將推動未來幾年市場份額的成長。我們已經交付了超過 50 套 E.、Bose 和 EVEREST 系統，客戶要求我們在年底前再交付 150 套系統。

We are putting a lot of effort into keeping up with the extraordinary level of demand for these new technologies, which enable our customers to operate much more efficiently at leading-edge nodes. The modular architecture of Everest has dramatically shortened the development cycle time for derivative products.

我們正投入大量精力來滿足市場對這些新技術的巨大需求，這些新技術使我們的客戶能夠在尖端節點上更有效率地運作。Everest 的模組化架構大大縮短了衍生產品的開發週期。

Our engineering teams have become more productive, enabling our customers to accelerate the introduction of next-generation edge in deposition systems for both iDose and EVEREST. We took a modular approach, leveraging our broad portfolio of high voltage, low power RF and advanced control technologies to bring best in class solutions to our customers, advanced energy development teams from around the world work closely together to make these products a reality.

我們的工程團隊提高了生產力，使我們的客戶能夠加快為 iDose 和 EVEREST 引入下一代邊緣沉積系統。我們採取模組化方法，利用我們廣泛的高壓、低功耗射頻和先進控制技術組合，為我們的客戶提供一流的解決方案，來自世界各地的先進能源開發團隊緊密合作，使這些產品成為現實。

Moving to industrial medical, where first quarter revenue was impacted by inventory corrections. Design activity in industrial and medical is extremely robust. After three years of dealing with supply chain shortages, our customers are now squarely focused on product innovation and differentiation. Design wins have been broad-based, including major first quarter wins in medical imaging, electrosurgery and warehouse automation.

轉向工業醫療領域，該領域第一季的收入受到庫存調整的影響。工業和醫療領域的設計活動非常活躍。在經歷了三年應對供應鏈短缺的挑戰之後，我們的客戶現在完全專注於產品創新和差異化。設計專案已成功中標多個領域，包括第一季在醫療影像、電外科和倉庫自動化方面取得的重大成功。

In March, we launched our evergreen high-power platform which features best in class efficiency and power density. Target applications include aerospace and defense, fast charging stations, industrial lasers and large capital equipment.

今年三月，我們推出了常青高功率平台，該平台具有一流的效率和功率密度。目標應用領域包括航空航太和國防、快速充電站、工業雷射和大型資本設備。

Our new industrial medical products are supported by focused sales teams and our new digital platform, which now includes e-commerce capability. In addition, our quick-turn engineering team works closely with customers to modify and customize our standard products to meet specific application needs.

我們的新型工業醫療產品由專業的銷售團隊和全新的數位化平台提供支持，該平台現在包含電子商務功能。此外，我們的快速回應工程團隊與客戶緊密合作，對我們的標準產品進行修改和客製化，以滿足特定的應用需求。

Moving on to data center computing, where first quarter revenue was slightly below expectation due to the push-out of a single hyperscale program into the later quarters of the year. We are forecasting a significant rebound in second quarter revenue, driven by increased hyperscale AI investments in our share gains in enterprise AI servers, telecom and networking revenue decreased sequentially, reduced infrastructure investment and high inventory levels constrained revenue. We expect these challenging market conditions to persist throughout 2024.

接下來是資料中心計算，由於一項超大規模計劃推遲到今年稍後進行，第一季的收入略低於預期。我們預測第二季營收將大幅反彈，這主要得益於超大規模人工智慧投資的增加，以及我們在企業級人工智慧伺服器、電信和網路領域的市場份額成長。由於基礎設施投資減少和高庫存水準限制了收入，導致第二季收入下降。我們預計這些充滿挑戰的市場環境將持續到2024年。

Now let me summarize our outlook. We expect the first quarter to be our revenue trough for the year. In the second quarter, we expected a surge in data center computing demand. We'll drive sequential revenue growth as we move into the second half our outlook remains largely unchanged from our last earnings call.

現在讓我總結一下我們的展望。我們預計第一季將是全年營收最低谷。第二季度，我們預期資料中心計算需求將激增。進入下半年，我們將推動營收季成長，我們的展望與上次財報電話會議相比基本保持不變。

This is based on our expectation that conditions in the semiconductor, industrial and medical markets will gradually improve, driving sequential quarterly growth customers are embracing our new technologies and products and design activity is at an all-time high. We expect that these design wins will drive market share gains in our target markets. Our manufacturing consolidation plan is on track, giving us confidence in our ability to move gross margins above 40% as markets recover.

這是基於我們對半導體、工業和醫療市場狀況將逐步改善的預期，從而推動季度環比增長，客戶正在接受我們的新技術和產品，設計活動也達到了歷史最高水平。我們預計這些設計訂單的中標將推動我們在目標市場中獲得市場份額。我們的生產整合計劃進展順利，這讓我們有信心在市場復甦時將毛利率提高到 40% 以上。

Finally, with a strong balance sheet, we continue to look for inorganic growth opportunities which make strategic in financial sense.

最後，憑藉強勁的資產負債表，我們將繼續尋找具有策略財務意義的非內生成長機會。

Looking forward, we believe that the investments we are making in R&D and manufacturing, coupled with potential acquisitions will accelerate our medium and long-term profitable growth. Paul will now provide more detailed financial information.

展望未來，我們相信，我們在研發和製造方面的投資，加上潛在的收購，將加速我們的中長期獲利成長。保羅接下來將提供更詳細的財務資訊。

Thank you, Steve, and good afternoon, everyone. First quarter revenue declined 19% quarter over quarter, driven by a challenging demand environment in our non-semi markets despite the lower volumes. Healthy product mix and solid execution allowed us to meet our gross margin target and the steps we took to control our operating expenses enabled us to deliver earnings per share of $0.58, which was within our guidance.

謝謝你，史蒂夫，大家下午好。儘管銷量下降，但由於非半導體市場需求環境充滿挑戰，第一季營收季減 19%。健康的產品組合和穩健的執行力使我們實現了毛利率目標，而我們為控制營運費用而採取的措施使我們實現了每股收益 0.58 美元，符合我們的預期。

The market environment in the first quarter was characterized by higher than expected customer inventory destocking and reduced demand at telecom and networking customers. Semiconductor revenue in Q1 was ahead of our expectations.

第一季的市場環境特徵是客戶庫存去庫存量高於預期，電信和網路客戶的需求下降。第一季半導體業務收入超出預期。

Backlog declined modestly from the end of last year and was in line with our target of slightly more than a quarter of revenue. At the same time, this was the second consecutive quarter of higher bookings, which supports our Q2 outlook for a sequential revenue rebound.

積壓訂單較去年年底略有下降，符合我們略高於營收四分之一的目標。同時，這是連續第二季預訂量成長，這支持了我們對第二季營收環比反彈的預期。

Based on some early signs of improvement, we believe our Q1 revenue will be the trough and expect business levels to increase over the remainder of the year.

根據一些早期改善跡象來看，我們認為第一季的營收將是低谷，並預計今年剩餘時間業務水準將有所成長。

Now let's review our financial results in more detail. Revenue in the semiconductor market was $180 million, down 6% sequentially and 7% year over year. Results were slightly better than our guidance with sequential growth in services, we continue to expect Q2 revenues around this level, but the second half stronger than the first half.

現在讓我們更詳細地回顧一下我們的財務表現。半導體市場營收為 1.8 億美元，季減 6%，年減 7%。業績略好於我們的預期，服務業務環比成長，我們繼續預期第二季營收將維持在這一水準附近，但下半年業績將強於上半年。

Revenue in the industrial and medical market was $83 million, down 23% from last quarter and 32% from last year. The impact of shorter lead times and increased inventory throughout the channel resulted in higher than expected levels of inventory rebalancing at both our OEMs and distributors. We expect revenues to remain around this level until inventories begin to normalize in the second half.

工業和醫療市場的收入為 8,300 萬美元，比上一季下降 23%，比去年下降 32%。縮短交貨時間和增加整個通路的庫存，導致我們的原始設備製造商和分銷商的庫存重新平衡水準高於預期。我們預計收入將維持在這一水平附近，直到下半年庫存開始恢復正常。

Data center computing revenue was $42 million, down 33% sequentially and 30% year over year. Although we had expected lower revenue this quarter, we also saw a single hyperscale program push out into the remainder of the year.

資料中心計算營收為 4,200 萬美元，季減 33%，年減 30%。儘管我們預期本季營收會下降，但我們也看到一個超大規模項目被推遲到今年剩餘時間。

However, based on recent order rates driven by increased investments in AI across multiple programs, we expect revenues to meaningfully rebound starting in the second quarter, telecom and networking revenue declined 48% sequentially and over 50% year over year to $22 million following a very strong 2023 in which customers replenished inventories following the supply chain crisis.

然而，根據近期在多個項目中加大對人工智慧投資所推動的訂單量，我們預計營收將從第二季開始顯著反彈。電信和網路收入環比下降 48%，年減超過 50%，至 2,200 萬美元，此前 2023 年表現強勁，客戶在供應鏈危機後補充了庫存。

However, demand in Q1 was even lower than our expectations due to further weakening in both the telecom and networking markets, increasing the impact of inventory destocking. We expect these market conditions to persist through the end of the year. First quarter gross margin was 35.1%, down 60 basis points from last quarter and 170 basis points from last year.

然而，由於電信和網路市場進一步疲軟，第一季的需求甚至低於我們的預期，加劇了庫存去庫存的影響。我們預計這種市場狀況將持續到年底。第一季毛利率為 35.1%，較上一季下降 60 個基點，比去年同期下降 170 個基點。

Results were in line with our expectations despite the lower volume due to favorable product mix and actions we are taking to lower costs. We expect Q2 gross margins to be at a similar level on higher volumes, but less favorable mix. In the second half, we continued to expect gross margins to increase, driven by our ongoing manufacturing consolidation activities, higher volumes and reduced material costs.

儘管銷售量有所下降，但由於產品組合有利以及我們正在採取措施降低成本，結果符合我們的預期。我們預計第二季毛利率將與第一季持平，銷量將有所成長，但產品組合將不太理想。下半年，我們繼續預期毛利率將有所成長，這主要得益於我們持續進行的生產整合活動、更高的產量以及更低的材料成本。

Operating expenses were $93.5 million, down from last quarter and below our target Q1 was the fifth consecutive quarter that we reduced operating spending, which is down more than 7% from Q4 of 2020 to despite the inflationary environment, we will continue to focus on controlling our discretionary spending while investing to support new product and platform activities.

營運支出為 9,350 萬美元，低於上一季和我們的目標。第一季是我們連續第五個季度減少營運支出，比 2020 年第四季下降了 7% 以上。儘管面臨通膨環境，我們仍將繼續專注於控制可自由支配的支出，同時投資以支持新產品和平台活動。

Throughout the year, operating income was $21 million for the quarter, depreciation was $10 million and our adjusted EBITDA was $31 million. Other income was $5 million at the high end of our guidance, with interest income higher than interest expense.

全年來看，本季營業收入為 2,100 萬美元，折舊為 1,000 萬美元，調整後的 EBITDA 為 3,100 萬美元。其他收入為 500 萬美元，處於我們預期的高端水平，其中利息收入高於利息支出。

Consistent with Q4, we expect other income to remain around 5 million per quarter until the swap instrument against our outstanding term loan expires in September of this year. For Q1, our non-GAAP tax rate was 17.7% higher than our target of 16% due to timing and geographic mix of profits. We expect the tax rate to remain in the 17% to 18% range for the balance of the year. First quarter EPS was $0.58 per share compared to $1.24 in both the previous and year-ago quarters.

與第四季度一致，我們預計其他收入將保持在每季 500 萬美元左右，直到今年 9 月我們未償還定期貸款的互換工具到期為止。第一季度，由於利潤的時間和地理位置組成，我們的非GAAP稅率比16%的目標高出17.7%。我們預計今年剩餘時間內稅率將維持在 17% 至 18% 的範圍內。第一季每股收益為 0.58 美元，而上一季和去年同期均為 1.24 美元。

Turning now to the balance sheet. Total cash and investments at the end of the first quarter was $1.02 billion with net cash of $106 million. Cash flow from continuing operations was $8 million, timing of previous year incentive payments, higher inventory on strategic investments and lower revenue impacted our cash flow.

現在來看資產負債表。第一季末，現金及投資總額為 10.2 億美元，淨現金為 1.06 億美元。持續經營業務的現金流為 800 萬美元，上一年激勵性付款的時間表、策略性投資的較高庫存和較低的收入影響了我們的現金流。

Overall, inventory increased $25 million or 7.5% sequentially, resulting in inventory days of 153 in Q1. Dpo increased from 49 days in Q4 to 58 days in Q1 receivables declined by $35 million on lower revenue and DSO was up slightly to 68 days. During the first quarter, we invested $16.6 million in CapEx. We continued to expect that 2024 CapEx will be approximately 4% of sales. We also made debt principal payments of $5 million and paid $3.8 million in dividends.

總體而言，庫存環比增加了 2,500 萬美元，增幅為 7.5%，導致第一季庫存週轉天數為 153 天。第四季的 DPO 為 49 天，第一季的 DPO 為 58 天；由於收入下降，應收帳款減少了 3,500 萬美元；DSO 略微上升至 68 天。第一季度，我們在資本支出方面投資了 1,660 萬美元。我們繼續預期 2024 年資本支出將約為銷售額的 4%。我們還償還了 500 萬美元的債務本金，並支付了 380 萬美元的股息。

Turning now to our guidance, we expect second quarter revenue to rebound from a Q1 trough, driven primarily by a recovery in data center computing. We expect semiconductor revenues to be at similar levels to the first quarter, and we expect industrial and medical and telecom and networking markets to be approximately flat as customers continue to rebalance their inventories.

現在來說說我們的業績預期，我們預計第二季營收將從第一季的低潮反彈，主要得益於資料中心計算的復甦。我們預計半導體收入將與第一季持平，而工業和醫療以及電信和網路市場將基本保持平穩，因為客戶將繼續調整其庫存。

As a result, we are forecasting our second quarter revenue to be approximately $350 million, plus or minus 20 million. We expect gross margin in Q2 to remain at around Q1 levels. On higher volumes and improved costs, offset by less favorable mix. We expect Q2 operating expenses to increase $1 million to $2 million sequentially due primarily to increased R&D investments to support new product launches and investments to scale the company.

因此，我們預計第二季營收約為 3.5 億美元，上下浮動 2,000 萬美元。我們預計第二季的毛利率將與第一季的水平大致持平。銷售量增加和成本降低，但產品組合不太理想，抵消了這些優勢。我們預計第二季營運支出將較上季增加 100 萬至 200 萬美元，主要原因是研發投入增加以支援新產品發布和擴大公司規模。

As a result, we expect Q2 non-GAAP earnings per share to be $0.73 plus or minus $0.25 before opening it up for Q&A, I want to highlight a few important points.

因此，我們預計第二季非GAAP每股收益為0.73美元，上下浮動0.25美元。在正式開始問答環節之前，我想強調幾個要點。

Overall, we continue to invest and set priorities with the long-term view of the market while managing prudently, given near-term dynamics despite the lower results in Q1, we expect revenues to improve sequentially in Q2. In addition, we expect the second half to grow largely as we had previously projected, driven by incremental revenue across several programs and timing of market improvement.

總體而言，我們將繼續以長遠的市場眼光進行投資和設定優先事項，同時謹慎管理，考慮到近期的市場動態，儘管第一季業績有所下滑，但我們預計第二季營收將環比改善。此外，我們預計下半年將基本按照我們先前的預測實現成長，這主要得益於多個專案收入的增加以及市場好轉的時機。

Looking beyond this year, we believe we are focused on the right markets with strong customer pull for our highly differentiated products and technologies. As a result, we expect to deliver strong growth and market share gains as markets recover.

展望今年之後，我們相信我們專注於正確的市場，這些市場對我們高度差異化的產品和技術有著強烈的客戶需求。因此，我們預計隨著市場復甦，我們將實現強勁成長並擴大市場份額。

Second, we believe earnings for the year will continue to be largely in line with our previous projections, we are executing our plan to improve our gross margins and profitability. We continue to expect gross margins to expand in the second half of the year, reaching our target of 37.5% to 38% by the end of the year as revenue improves.

其次，我們相信今年的收益將繼續基本上符合我們先前的預測，我們正在執行提高毛利率和獲利能力的計畫。我們繼續預期下半年毛利率將有所成長，隨著營收的改善，到年底將達到 37.5% 至 38% 的目標。

In addition, we expect operating expenses to grow modestly over the next several quarters as we manage our cost structure while investing in new products and scale to drive future growth. Beyond this year, we believe we are on track to achieve our gross margin goal of over 40% as quarterly revenue recovers to the mid 400 million range and deliver higher earnings than our prior peak as markets recover.

此外，我們預計未來幾季營運費用將溫和成長，因為我們將控製成本結構，同時投資新產品和擴大規模以推動未來成長。展望今年，我們相信隨著季度收入恢復到 4 億英鎊左右，並且隨著市場復甦，我們將實現超過 40% 的毛利率目標，並帶來比之前峰值更高的收益。

Finally, we have a strong balance sheet and are well-positioned to execute acquisitions that make financial and strategic sense.

最後，我們擁有強勁的資產負債表，完全有能力進行在財務和策略上都有意義的收購。

With that, we'll take your questions. Operator?

接下來，我們將回答您的問題。操作員？

(Operator Instructions)

（操作說明）

Joe Quatrochi, Wells Fargo.

喬·夸特羅奇，富國銀行。

Yes. Thanks for taking the question. Maybe first, just kind of a broadly speaking, maybe ex semiconductor, just trying to understand it sounds like your inventory destocking was a bit more than expected. So can you talk about just your level of visibility forward and what gives you confidence that we're kind of reaching a or finding a endpoint of some of the inventory destocking as we move through the year?

是的。感謝您回答這個問題。首先，從廣義上講，也許以前是半導體行業的人，只是想了解一下，聽起來你們的庫存清倉比預期的要多一些。那麼，您能否談談您對未來前景的可見性，以及是什麼讓您相信，隨著我們今年的推進，我們正在逐步實現或找到一些庫存去庫存的終點？

Yes, Joe, this is Steve. I'll make a few comments.

是的，喬，這是史蒂夫。我來說幾點。

You're right.

你說得對。

In Q1, the destocking was a little bit more significant than we originally forecasted. There are two main areas of weakness, one was telecom and networking and second was industrial, medical, telecom and networking.

第一季度，去庫存的幅度比我們最初預測的要大一些。主要有兩個薄弱環節，一是電信和網絡，二是工業、醫療、電信和網路。

Basically what happened was a lot of inventory built up at the end of the year and then we think there's also a demand shift that we saw in Q1. And so we don't expect the telecom and networking market to come back this year.

基本上，年底累積了大量庫存，我們認為第一季也出現了需求轉變。因此，我們預計電信和網路市場今年不會復甦。

So the real focus for us is on industrial medical and with industrial medical, it's a little bit more difficult because there are a lot more customers. Telecom and networking is just a few big customers until end industrial medical as many customers. What makes that group somewhat unique is that they suffered the most over the last three years during the supply chain issues.

因此，我們真正的重點是工業醫療，而工業醫療領域的情況則更加複雜，因為客戶群要大得多。電信和網路只是眾多大客戶中的一小部分，而工業醫療等產業也擁有眾多客戶。這個群體比較特殊的地方在於，在過去三年供應鏈問題中，他們遭受的損失最大。

So they recovered late, probably most people recovered from supply chain issues late '23, early '24. So what those customers encountered over the past three years were very long lead times a shift in mentality from just-in-time to just-in-case procurement.

所以他們恢復得比較晚，可能大多數人都是在 2023 年底、2024 年初才從供應鏈問題中恢復過來。因此，這些客戶在過去三年中遇到的問題是交貨週期非常長，採購心態從即時採購轉變為以防萬一採購。

And then all of a sudden, you saw some lead time contraction in the first quarter of this year. So that's really what caused these pockets of inventory. Some of those are in distribution, but many of those are at the end customer and sometimes at their customers.

然後突然之間，今年第一季交貨週期出現了一些縮短。所以，這才是造成這些庫存積壓的真正原因。其中一些在分銷環節，但許多都在最終客戶那裡，有時甚至在最終客戶的客戶那裡。

And so that's why it's more difficult to track the exact level of inventory in industrial medical. And the good news is we've already seen recovery. We're starting to see recovery on the medical side, and we're seeing some encouraging signs of move into Q2 and Q3 on medical industrial, based on our discussions with customers with distributors and also analyzing trends in resales as well as orders from from direct customers.

所以，這就是為什麼工業醫療領域更難追蹤確切的庫存水準的原因。好消息是，我們已經看到了復甦的跡象。我們開始看到醫療領域出現復甦跡象，根據我們與經銷商客戶的討論以及對轉售趨勢和直接客戶訂單的分析，我們看到醫療工業領域在第二​​季和第三季出現了一些令人鼓舞的跡象。

We think that's going to start to normalize in either Q3 or Q4 this year. And as we look back, we saw the correction starting Q4 in industrial medical, Q4 23 and so we're in the third quarter that correction today. And that's why we think we'll be out of this sometime in Q3 or Q4 of this year.

我們認為這種情況將在今年第三季或第四季開始趨於正常。回顧過去，我們看到工業醫療領域的調整從第四季開始，第四季為 23 美元，所以我們今天正處於該調整的第三季。因此，我們認為我們將在今年第三季或第四季擺脫困境。

Got it. That's helpful color. And as a follow-up, you guys are talking obviously data center computing increasing sequentially driving the revenue growth there. And you mentioned a rebound on hyperscale AI investments. Can you talk about what's driving that? Because obviously, investment in AI servers has been strong for several quarters and maybe you guys haven't quite as participated in that as much as others in the market so what's changing is it market share gains?

知道了。這是個很有幫助的顏色。作為後續討論，你們顯然在談論資料中心計算的持續成長，這推動了該領域收入的成長。您也提到了超大規模人工智慧投資的反彈。你能談談是什麼原因導致這種情況嗎？顯然，人工智慧伺服器領域的投資已經連續幾季保持強勁勢頭，而你們可能不像市場上的其他公司那樣積極參與其中，那麼正在發生什麼變化呢？是市場佔有率的成長嗎？

Is that your customer specific customers that are spending more as something related to your other component availability that pulls you in? Can you just talk about that.

是因為你其他組件的供應情況吸引了某些特定客戶，導致他們消費更多？你能談談這件事嗎？

Yes. Yes, I'd be happy to. You know, we think what happened was our customers first had to focus on brick and mortar. They had to build the data center infrastructure, then they had to secure the modules and primarily within video chips in them. And then they go after power supplies and other things they need to complete the data centers.

是的。是的，我很樂意。你知道，我們認為發生的情況是，我們的客戶首先必須關注實體店。他們需要建立資料中心基礎設施，然後他們需要確保各個模組的安全，尤其是其中的視訊晶片的安全性。然後他們再去採購電力供應和其他完成資料中心建造所需的物資。

So I think I think we're okay with regards to our market share in the in the data center, in fact, we're actually selling and differentiating based on reliability efficiency and power density. And those three factors become much more important with artificial intelligence servers. Our reliability is extremely important because these servers are very costly compared to conventional servers.

所以我覺得我們在資料中心的市佔率還不錯，事實上，我們實際上是在可靠性、效率和功率密度方面進行銷售和差異化。對於人工智慧伺服器而言，這三個因素變得更加重要。我們的可靠性至關重要，因為與傳統伺服器相比，這些伺服器成本非常高昂。

The efficiency and power density metrics are very important because these IAI racks consume three to five times the power of conventional rigs. So we think we're in a good position. The other thing that's helping us is our execution. So we've been able to execute on some some near term requirements from our customers, and we think that provides some differentiation. In addition to our technical attributes.

效率和功率密度指標非常重要，因為這些 IAI 機架的耗電量是傳統機架的三到五倍。所以我們認為我們處於有利地位。另一個幫助我們的因素是我們的執行力。因此，我們已經能夠滿足客戶的一些近期需求，我們認為這帶來了一些差異化優勢。除了我們的技術優勢之外。

Steve Barger, KeyBanc Capital Markets.

史蒂夫·巴格爾，KeyBanc Capital Markets。

Thanks. The comment about design activity being at an all-time high. Are you measuring that by starts or by dollar amount of activity or some other metric? And can you quantify where design is in is on a year over year basis?

謝謝。關於設計活動達到歷史最高水準的評論。你是用開始次數、交易金額還是其他指標來衡量的？你能量化一下設計現況逐年變化的情況嗎？

Yes, we will be happy to give you some figures of merit. When we look at 2023, our design win funnel, the dollar value in the funnel increased 50% just for the industrial medical part of our business.

是的，我們很樂意為您提供一些性能數據。當我們展望 2023 年時，我們的設計得標管道中，光是工業醫療業務部分的美元價值就成長了 50%。

And as I look to our semiconductor part of the business, our metrics, our more focused on major design wins and I talked in the opening about the progress we're making with our egos and Everest platforms, the fact that we shipped 50 those platforms already and have demand for another 150 of those platforms before the end of this year is very significant.

當我審視我們的半導體業務時，我們的指標，我們更加專注於重大設計訂單，我在開場白中談到了我們在 Eto 和 Everest 平台上取得的進展，事實上我們已經交付了 50 個這樣的平台，並且在今年年底前還有 150 個這樣的平台的需求，這意義非常重大。

It means that our customers have looked at the initial units that we shipped to them and they want more. And so what we're seeing is that these units are going into not just our customers' laboratories, but also into into end user wafer fabs.

這意味著我們的客戶已經查看了我們最初發給他們的產品，並且他們想要更多。因此，我們看到這些設備不僅進入了我們客戶的實驗室，而且還進入了最終用戶的晶圓廠。

And so there's there's a race right now to be included as the process or the tool of record for the next super node, which is two nanometer and also to be included in the most advanced memory processes, whether it's DRAM or NAND. So I think we're really good shape there, and we'll see that market share increase in semiconductor based on our major design wins that we're currently working on this year?

因此，目前正在展開一場競賽，力爭成為下一個超級節點（即 2 奈米）的記錄工藝或工具，並被納入最先進的記憶體工藝，無論是 DRAM 還是 NAND。所以我認為我們在這方面情況非常好，而且基於我們今年正在進行的主要設計項目，我們將看到半導體市場份額的成長？

Yes, that is super encouraging. Are you ready for high-volume manufacturing for Evo Syniverse if it came to that?

是的，這真是太令人鼓舞了。如果需要大規模生產 Evo Syniverse，你們準備好了嗎？

Yes, it's a great question. So so we will have two manufacturing sites for iDose and Everest. The one we have today is in Malaysia and Penang, and we're also in the process of building a second factory in Thailand. I mentioned in previous calls, that will come online in the third quarter of next year.

是的，這是一個很好的問題。所以，我們將有兩個生產基地，分別用來生產iDose和Everest產品。我們目前在馬來西亞檳城設有工廠，並且正在泰國建造第二家工廠。我在之前的電話會議中提到過，這項服務將於明年第三季上線。

And the first products we're introducing there will be plasma power products that will be both Everest and some of our high running products. So I think we're in good shape. We have two very solid manufacturing sites for Eva and Everest in. I think the ramp could be more pronounced than the normal given the strong demand we've seen this year.

我們將在那裡推出的首批產品將是等離子電源產品，其中包括 Everest 系列和我們的一些高性能產品。所以我覺得我們情況不錯。我們擁有兩個非常可靠的 Eva 和 Everest 生產基地。鑑於今年強勁的需求，我認為成長速度可能會比平常更加明顯。

Got it. And then for my follow up or maybe really my second follow-up.

知道了。然後是我的後續跟進，或者更確切地說是我的第二次跟進。

I know it's hard to model a trough, and I don't want to parse your words too closely, but when you predicted 2Q revenue rebound, I noticed the low end of the guide is not far from 1Q, which I would just call more flat. Can you talk confidence in the rebound and whether you're leaning towards low middle or high based on what you can see today?

我知道很難對低潮進行建模，我也不想過於仔細地解讀你的話，但是當你預測第二季度收入反彈時，我注意到該預測的下限與第一季相差不遠，而我只會稱第一季為「平穩」。您能否談談對反彈的信心，根據您今天觀察到的情況，您傾向於中低水平還是高水平？

Well, I would say, once burned twice shy. So I think I'd take Curragh for guidance for Q2 is relatively conservative. What we've seen basically in the data center side is a surge in orders. So where we're basically working as hard as we can to fill those orders this quarter. So I think that's very secure. And for the rest of the business, we're basically modeling flat, which is pretty low to begin with.

嗯，我想說，一朝被蛇咬，十年怕井繩。所以我認為，以 Curragh 作為第二季業績指引的指標相對保守。我們在資料中心方面看到的主要是訂單激增。所以，我們現在正竭盡全力在本季完成這些訂單。所以我認為這非常安全。至於其他業務，我們基本上採用的是平穩模式，而這種模式的初始水準就相當低。

Understood. Thanks.

明白了。謝謝。

Krish Sankar, TD Cowen.

Krish Sankar，TD Cowen。

Yes, hi. Thanks for taking my question. On your other question on on your semi revenues have been kind of bouncing around the $180 million plus or minus $10 million to $15 million range for like almost five quarters now and it can be done to went through a cyclical downturn.

是的，你好。謝謝您回答我的問題。關於你提出的另一個問題，你們的半導體收入在過去近五個季度一直在 1.8 億美元上下波動 1000 萬至 1500 萬美元之間，這或許可以解釋你們經歷了周期性衰退。

And you know your customers were destocking of the real question is I'm just trying to wonder like, you know, I understand we might get the cyclical rebound, but it's really the two drivers for semi revenues when it comes. And then the CapEx starts flowing through? Or do you think there are other vectors within that that can help you drive semi revenues better than kind of just where we've been?

你知道你的客戶正在去庫存，真正的問題是，我只是想問，你知道，我理解我們可能會迎來週期性反彈，但真正推動半導體收入成長的是兩個因素。然後資本支出就開始流入了嗎？或者您認為還有其他途徑可以幫助您更好地推動半導體產業的收入成長，而不是僅僅依靠我們目前所採取的措施？

Yes, Krish, I think one of the bigger drivers over the past year has been trailing-edge logic, right? I think that's been a big part of the TAM in semiconductor equipment. So we've been fortunate to be a part of that. Obviously, demand demand has been low for the last 18 months and D-Ram, we've also been suffering there.

是的，克里什，我認為過去一年來的主要驅動力之一是後發邏輯，對吧？我認為這在半導體設備市場規模中佔據了很大一部分地位。所以，我們很幸運能參與其中。顯然，過去 18 個月需求一直很低迷，D-Ram 也因此受到了影響。

So yes, I think what we see moving forward, Krish, is in the second half, we're expecting to see some mild recovery begin for D-Ram manufacturing and also for leading-edge logic. And then we expect things to accelerate in 2025 as net incomes comes back online. So that's a that's our current outlook on the products we've been producing for years, then we layer on top of that, the demand for e-books and Everest for the leading-edge memory and logic processes. So we think 2025 is going to be a real good year for us.

所以，是的，我認為展望未來，Krish，我們預計在下半年，D-RAM 製造和尖端邏輯電路將開始出現一些溫和的復甦。然後我們預計，隨著淨收入恢復正常，這種情況將在 2025 年加速發展。這就是我們目前對我們多年來生產的產品的看法，然後在此基礎上，我們又加上了對電子書和 Everest 對尖端記憶體和邏輯製程的需求。所以我們認為2025年對我們來說將會是非常棒的一年。

That is just my follow-up. I had one more question for Paul. After that, when do you expect to see a lagging edge semi to rebound?

這只是我的後續補充。我還有一個問題想問保羅。之後，你預計什麼時候會看到落後的四強選手反彈？

Okay. I'll go and take that question. The it's very difficult to say I think the way we think about lagging edge is there's China and non-China lagging edge. And I think for non-China lagging edge, things have been in a trough for a while. It's difficult to predict when that's going to come back. So we're kind of in a wait-and-see mode. I think it's similar in China. The China demand based on what we've seen from our customers is still reasonably strong, and we'll have to see how that develops in the coming quarters.

好的。我去回答這個問題。很難說，我認為我們對滯後優勢的看法是，存在中國滯後優勢和非中國滯後優勢。我認為，對於非中國落後地區而言，情況已經低迷了一段時間。很難預測這種情況何時會再次出現。所以我們現在處於觀望狀態。我認為中國的情況也類似。根據我們從客戶那裡了解到的情況，中國市場的需求仍然相當強勁，接下來幾季我們將拭目以待其發展趨勢。

Body that had a quick follow-up for all of, you know, it kind of from the questioning of the gross margin has been stuck in this range in the 35 plus or minus. You're talking about getting like now to 53 hundred basis points higher exiting this year. And in the past, you spoke about premium pricing that as a headwind is going to become a tailwind. But obviously, volumes fell through is some gross margin rebound, predominantly volume-driven and manufacturing costs shutting down factories? Or did you ever see any of the premium pricing are being captured? And also, do you expect calendar 22 exit rates for revenues to be 400 million a quarter?

對此，有人迅速跟進，你知道，從毛利率的質疑來看，毛利率一直徘徊在 35% 左右。你指的是今年底前股價上漲 5,300 個基點。過去，您曾談到溢價，認為它原本是不利因素，現在將變成有利因素。但顯然，銷量下滑導致毛利率反彈，這主要是由於銷量下降和製造成本上升導致工廠停工造成的？或者，您是否看到任何溢價被收取？另外，您預計2022年各季的營收退出率將達到每季4億美元嗎？

Yes. So good questions on the on the gross margin, the first thing I'd say is we're pretty pleased that we were able to defend the gross margins of 35% on down revenue. And I think that's a function of we had we had good mix, but we're also starting to see some of the benefit of some of our manufacturing costs actions.

是的。關於毛利率的問題問得很好，首先我想說的是，我們非常高興能夠在收入下降的情況下維持 35% 的毛利率。我認為這得益於我們之前擁有良好的產品組合，但我們也開始看到一些降低製造成本措施的好處。

And we think that will sort of be in the same range in Q two as we see revenues come back to roughly the $350 million and the mix kind of shifts back to where it was before. But as we look towards the end of the year, the big thing I think that's changing on is first, we are starting to see the benefit of more of our manufacturing consolidation activity. It's a transition.

我們認為第二季的情況也會大致相同，因為營收將回升至 3.5 億美元左右，產品組合也將恢復到先前的狀態。但展望年底，我認為最大的改變是，首先，我們開始看到更多製造業整合活動帶來的好處。這是一個過渡時期。

We're moving products from one site to another, which means we have to build up on the second site before we can take products out of the first site. And so we start to see the benefits of that really come in towards the latter part of this year.

我們正在將產品從一個站點轉移到另一個站點，這意味著我們必須先在第二個站點上建立起完善的系統，然後才能將產品從第一個站點轉移到第二個站點。因此，我們開始在今年下半年真正看到這些措施帶來的好處。

That's worth just I say, on a general basis, 100 basis points of the improvement, you're right, getting higher volume probably is another 100 basis points of that. And our model, as we mentioned last quarter is that that comes in at about 400 million of revenue.

總的來說，這相當於提升了 100 個基點，你說得對，更高的銷量可能又能帶來 100 個基點的提升。正如我們上個季度提到的，我們的模型顯示，這大約能帶來 4 億美元的收入。

So we said we we think we're on track to the same projections we had last quarter, which means generally we see we see that 400 million within range by the end of the year. The last piece is the material costs and a lot of the benefit that we've seen has already come through. As you recall, if you go back four or five quarters that was running 300 basis points of bad news to gross margin that's been trending down is down into the 50 basis points or so.

所以我們說，我們認為我們正朝著與上季度相同的預測穩步前進，這意味著我們預計到年底將達到 4 億美元。最後一點是材料成本，我們已經看到了許多好處。你可能還記得，如果回顧四、五個季度，毛利率曾出現 300 個基點的壞消息，並且一直在下降，現在已經降至 50 個基點左右。

And we expect that to largely wash through in the next quarter. So I think the material cost in terms of the premiums is largely getting back into a normal range. We always have some the some fits and starts with the piece part here or there. So I think that's getting largely back to normal. Now it's coming down to our manufacturing cost improvements, recovery in volumes and then over a longer period of time.

我們預計這種情況將在下一季基本緩解。所以我認為，就溢價而言，材料成本基本上已經恢復到正常範圍。我們總是會遇到一些零零碎碎的情況，這裡那裡會有一些小零件。所以我覺得情況基本上正在恢復正常。現在關鍵在於降低製造成本，恢復產量，然後從長遠來看。

Our portfolio improvements, our new products, Steve talked about the design wins we're seeing both in industrial and medical and in semi with our egos and Everest, all those should contribute to better margins.

我們的產品組合改進、我們的新產品，史蒂夫談到了我們在工業、醫療和半導體領域取得的設計成功，以及我們的“Egost”和“Everest”項目，所有這些都應該有助於提高利潤率。

Also make one other comment, and that is, as we see the data center market recovering, as Steve mentioned, that's driven by a lot of the AI investment that really demands the capabilities that we've been focused on.

另外，我還要補充一點，正如史蒂夫所提到的，我們看到資料中心市場正在復蘇，這主要得益於人工智慧領域的大量投資，而這些投資確實需要我們一直關注的能力。

As you recall, we've had a more selective strategy there to focus where customers value our differentiation and and are willing to pay for that. So while margins in that part of the market, you know, aren't as strong as the others, they're much better than they used to be because of where we focused. And so I think that's also helping us as we go forward as well, where figures will look.

如您所知，我們在那裡採取了更有選擇性的策略，專注於那些客戶重視我們的差異化優勢並且願意為此付費的地方。所以，雖然這部分市場的利潤率不如其他市場高，但由於我們把重點放在哪裡，已經比以前好得多了。所以我認為這對我們未來的發展也很有幫助，讓我們能夠更了解相關數據。

Very helpful. Thanks.

很有幫助。謝謝。

James Ricchiuti, Needham & Co.

詹姆斯‧里基烏蒂 (James Ricchiuti)，李約瑟公司

Thanks. Good afternoon.

謝謝。午安.

As we look out to the second half and see more of these markets beginning to recover, a question about OpEx. You mean what kind of OpEx will be required to support the higher revenues? Do you see a need? It sounds like your you guys are increasing R&D spend, but just in general, as we think about OpEx and the markets recovering?

展望下半年，隨著更多市場開始復甦，關於營運支出（OpEx）的問題也隨之而來。你是說，為了支撐更高的收入，需要什麼樣的營運支出？你認為有這種需求嗎？聽起來你們似乎在增加研發投入，但總的來說，考慮到營運支出和市場復甦，情況又會如何呢？

Yes, I think a good way to think about that, Jim, is that on We guided to $1 million to $2 million higher in Q2 to I think based as volumes pick up, we'll see some a little bit of variable costs continue to accelerate our efforts on getting these new products qualified. So probably reasonable to think about a similar increase in each of the next couple of quarters.

是的，吉姆，我認為一個很好的思考方式是，我們預計第二季營收將比預期高出 100 萬至 200 萬美元，我認為隨著銷量回升，我們將看到一些可變成本繼續增加，這將有助於我們加快新產品獲得認證的步伐。因此，預計未來幾季也會出現類似的成長。

And I think that's lower than maybe we talked about earlier because we've taken some near term actions to help mitigate the growth of spending on as we get all these new products and everything else out into the market. So that's probably the way to think about a similar increase in Q3 and Q4 relative to kind of the guidance we gave in Q2.

我認為這比我們之前討論的要低，因為我們已經採取了一些短期措施來幫助緩解隨著我們把所有這些新產品和其他東西推向市場而帶來的支出增長。所以，對於第三季和第四季與我們在第二季給出的預期相比出現的類似成長，這或許可以這樣理解。

Got it. Hey, Steve, I wanted to go back to some of the commentary you provided on design wins in industrial and medical markets. Can you talk a little bit about whether you may want to split the two, starting with Medical first or a design win activity that you're seeing COMING, I presume it from mainly from existing customers. Is that fair to say?

知道了。嘿，史蒂夫，我想再談談你之前對工業和醫療市場設計成功案例的一些評論。您能否談談您是否想將這兩者分開，先從醫療領域入手，還是先開展您認為即將出現的、主要來自現有客戶的設計贏得活動？這樣說公平嗎？

Yes, Jim, I'll start with medical. And I think you're correct when we purchased SL power a couple of years ago dataset of medical customers that complemented our set of medical customers. So what we've been doing for the past two years is cross-pollinating the products between these two sets of customers. And I think medical is got a relatively well defined set of big customers and then a lot of smaller, smaller offices go to distribution. So yes, most of the big design wins are coming through established customers, either SL power brought to Advanced Energy or advanced energy processing power as I look at an industrial up in industrial.

是的，吉姆，我先從醫學方面著手。我認為你是對的，幾年前我們收購了 SL Power，獲得了醫療客戶的數據集，這與我們的醫療客戶群相輔相成。因此，過去兩年我們一直在做的，就是讓這兩組客戶的產品相互融合。我認為醫療產業擁有相對明確的大客戶群，而許多規模較小的診所則依賴分銷管道。所以，是的，大多數大型設計訂單都來自老客戶，要么是SL電力公司為Advanced Energy公司提供的電力，要么是Advanced Energy公司的處理能力，正如我所看到的，工業領域的進步。

Yes. Yes. So industrial is a little bit different, right, because it's a very, very broad set of customers. So what we've done there. We've done a number of things differently over the past, let's say, year year and a half. The first is we dedicated roughly half our sales force around the world to selling only industrial medical products to industrial medical customers. So this has really been a big factor behind the increase in the design win funnel.

是的。是的。所以工業領域的情況略有不同，對吧，因為它的客戶群非常非常廣泛。所以，我們在那裡做了些什麼。在過去一年半的時間裡，我們做了很多不同的事情。首先，我們把全球大約一半的銷售人員專門用來向工業醫療客戶銷售工業醫療產品。因此，這確實是設計方案中標管道擴大的重要因素。

The second is we developed a new website, which makes it much easier for customers to specify the right product for Advanced Energy and to receive products very quickly from us. So I think we're a much friendlier company to do business with fewer industrial medical customer.

第二點是，我們開發了一個新網站，這使得客戶更容易為 Advanced Energy 選擇合適的產品，並能很快從我們這裡收到產品。所以我認為，對於工業醫療客戶較少的公司來說，我們是一家更友善的企業。

The third thing we've done is we've increased the size of our our quick-turn engineering team. What this team does is they take our standard products. And based on customer request, they will customize or tailor those products to the specific application. And so we've seen roughly a 50% increase in those those spin-offs from standard products and we could we could do those. Those custom products very quickly typically between four and eight weeks is the development time. And so how this activities leading to a higher market share, industrial medical and a lot of optimism as we look forward about our ability to become much more significant player in industrial medical.

我們做的第三件事是擴大了快速反應工程團隊的規模。這個團隊所做的，就是採用我們的標準產品。根據客戶要求，他們會對這些產品進行客製化或調整，使其適應具體應用。因此，我們看到這些標準產品的衍生產品數量增加了約 50%，我們可以做這些。這些客製化產品的開發時間通常很快，通常在四到八週之間。因此，這些活動將帶來更高的市場份額，工業醫療領域，並且我們對未來成為工業醫療領域更重要的參與者充滿樂觀。

Got it. Helpful color. The last question, if I may, if I may ask a broader question just on semi. But yes, we sit today. Would you say you're more or less optimistic about the improvement in the second half, I see say three months ago?

知道了。有用的顏色。最後一個問題，如果可以的話，如果可以的話，我想問一個更廣泛的問題，就半個而言。是的，我們今天會坐著。就三個月前的情況來看，你覺得你對下半年的改善情況更樂觀還是更悲觀？

I'd say it's about the same. I think the forecast that we have today support a high single digit percentage, perhaps 10% increase in revenue in semiconductor first half to second half. So I think that's about the same that we saw a quarter ago. So really nothing has changed when it comes to the second half of this year. I think what's changed for us. It is really our view of next year, and that's based on our success with iDose and EVEREST. Our first design wins and the the intensity of activity we're seeing at our customers right now.

我覺得差不多。我認為我們目前的預測支持半導體產業上半年到下半年營收實現個位數百分比的成長，或許達到 10%。所以我認為這和我們上個季度看到的情況大致相同。所以，就今年下半年而言，其實並沒有什麼改變。我認為對我們來說，改變的是…這確實是我們對明年的展望，而這又是基於我們在 iDose 和 EVEREST 專案上的成功。我們首次贏得設計訂單，目前我們看到客戶那邊非常活躍。

Kevin, thanks very much.

凱文，非常感謝。

Scott Graham, Seaport Research.

Scott Graham，Seaport Research。

Hey, good afternoon. Thanks for taking my question. And Steve, you sound better than you did a quarter ago. I noticed the revenue print was a little hard, but the gross margin held up well and you sound better on the outlook.

嘿，下午好。謝謝您回答我的問題。史蒂夫，你聽起來比三個月前好多了。我注意到營收數據有點糟糕，但毛利率保持良好，而且你對前景的展望聽起來也比較樂觀。

I wanted to ask you a question about the data center business because, you know, I so for a number of companies as others do that have a lot of data center exposure and I'm still not really seeing the declines that you guys have been seeing the last couple of quarters.

我想問你一個關於資料中心業務的問題，因為你知道，我和其他一些在資料中心領域投入很大的公司一樣，並沒有真正看到你們在過去幾個季度看到的下滑趨勢。

In fact, in most cases, to the contrary, I know you kind of walk us through that. You kind of see that the power conversion equipment goZing, let's say, last Is it would you color that, you know, the last couple of quarters of declines that way?

事實上，大多數情況下恰恰相反，我知道你會一步步引導我們完成這件事。你可以看出電力轉換設備，比如說，最近幾季的下滑，你會把這看成是過去幾季下滑的原因嗎？

Was there perhaps some destocking involved there or was it or was it something else because you sound obviously and for August order's sake much more optimistic about data centers going forward. I just want to trying to understand what happened on that.

這其中是否涉及一些去庫存措施，或者還有其他原因？因為就八月的訂單而言，你顯然對資料中心的未來前景更加樂觀。我只是想弄清楚到底發生了什麼事。

Yes, Scott, I think part of it was just a sequential procurement strategy where you can't build these. These AI enabled data centers without a commitment of chips and modules for the GPU and the high-bandwidth memory. So I think once our customers were able to secure those applications, right, then they were able to come to companies like Advanced Energy and the purchase of advanced power supplies. So I think that's part of it.

是的，史考特，我認為部分原因是採購策略的順序性，你無法建造這些東西。這些人工智慧資料中心無需投入GPU晶片和模組以及高頻寬記憶體。所以我認為，一旦我們的客戶能夠確保這些應用程式的安全，他們就可以來找像 Advanced Energy 這樣的公司購買先進的電源。所以我覺得這是原因之一。

I think a second part of as I look back over the last three or four quarters is first, this is a cyclical market if you look back over the last 10 years, this is the way it goes. They tend to buy a lot and then they go into an inventory digestion mode and they come roaring back, and that's it's pretty much on schedule. So we would expect to see strong demand from data center for the next four to five quarters based on the last two cycles we went through. I think the third factor is these customers were also impacted by the supply chain issues over the past few years. And I'm sure there were some inventory issues that they were dealing with as well.

我認為，回顧過去三、四個季度，第二點是，這是一個週期性市場，如果你回顧過去 10 年，你會發現市場就是這樣發展的。他們往往會大量進貨，然後進入庫存消化階段，之後會強勢回歸，這基本上就是按計劃進行的。根據我們經歷的過去兩個週期，我們預計未來四到五個季度資料中心的需求將十分強勁。我認為第三個因素是，這些客戶在過去幾年也受到了供應鏈問題的影響。我相信他們當時也面臨一些庫存問題。

Fair enough. Thank you for that. I just wanted to maybe touch on, you know, the balance sheet, the liquidity there, you know you did the debt deal a couple of quarters back in the is it essentially that, you know, industrial and medical are just sort of sluggish markets for you right now that you're not looking there or you know, what is what is the outlook for the announcement of the closing of a deal or more this year?

很公平。謝謝。我只是想稍微談談資產負債表和流動性問題。你們幾個季度前就完成了債務交易，這是否意味著，工業和醫療市場目前對你們來說比較低迷，所以你們沒有關注這些領域？或者說，今年宣布完成一項或多項交易的前景如何？

How does that pipe locally? What's your optimism on timing of closing?

本地管道是如何連接的？您對交易完成的時間有多樂觀？

Yes. So maybe I'll chime in here. I think we're fortunate in that we would generate cash as a company and that we had a successful convertible deal in September. So we had we were sitting on over $1 billion in cash. That said, we're not going to do a deal, doesn't make sense for the company and so we're still looking for a deal that makes financial sense for the company makes strategic sense for the Company that we can integrate quickly and it averages up our gross margin. So we're still working on it and we'll see what develops in the coming months.

是的。所以，也許我也該插幾句。我認為我們很幸運，公司能夠產生現金流，而且我們在9月成功完成了一筆可轉換債券交易。所以當時我們手上有超過10億美元的現金。也就是說，我們不會達成這筆交易，這對公司來說沒有意義，所以我們仍在尋找一項對公司在財務上有意義、在戰略上有意義、我們可以快速整合並且能夠提高我們平均毛利率的交易。所以我們仍在努力，看看未來幾個月會有什麼進展。

I guess more to the point, my question is your deal pipeline a little thicker than it was six months ago and is your optimism higher or is that that weakness in those businesses may be a bit of a balance?

我想更確切地說，我的問題是，你們的交易管道是否比六個月前更充足，你們的樂觀情緒是否更高，或者這些業務的疲軟是否可能起到某種平衡作用？

Well, I think the deal pipeline maybe slightly thicker. We've always had a good pipeline, and our practice has been to develop relationships with with our potential target companies so that we're their first in line when they decide it's time to make a make a move. And that said, I think there's always going to be issues on valuation. And so that's I think that's really where most of these discussions end up, you have to figure out what's a fair value for both parties.

我覺得交易管道可能稍微暢通一點。我們一直擁有良好的專案儲備，我們的做法是與潛在目標公司建立關係，這樣當他們決定採取行動時，我們就能成為他們的首選。也就是說，我認為估值問題總是會存在的。所以我覺得，大多數這類討論最終都會歸結於此，你必須弄清楚對雙方來說什麼是公平的價值。

Right. Thank you.

正確的。謝謝。

(Operator Instructions)

（操作說明）

Mark Miller, Benchmark.

馬克·米勒，基準。

You indicated that the booking trends were positive during the quarter. I was just wondering, is the breakdown a little more strongly? What were your strongest areas for bookings?

您指出本季預訂趨勢呈上升趨勢。我只是想問一下，這種分解是否更明顯了？你們預訂量最大的地區是哪些？

Yes, Mark, it's interesting because on, you know, we typically have talked about backlog. We had expanded and now it's come down in bookings only represents part of our business. But we do think it's sort of one of those indicators that gives us confidence that things are starting to come back. And we saw increased bookings, frankly, across all of our markets with the exception of telecom and networking. And as Steve mentioned, the debt markets particularly challenged right now, given both having inventory as well as quite a bit softer market conditions, and that's pretty well publicized.

是的，馬克，這很有意思，因為你知道，我們通常會討論積壓的工作。我們之前規模擴大了，但現在預訂量下降了，只占我們業務的一部分。但我們確實認為這是讓我們相信一切正在開始恢復的跡象之一。坦白說，除了電信和網路市場之外，我們所有市場的預訂量都有所增加。正如史蒂夫所提到的那樣，鑑於庫存積壓以及市場環境較為疲軟，目前的債務市場面臨著特別嚴峻的挑戰，這一點已廣為人知。

Was wondering in terms of your current backlog, what does is it a front end back end more linear type backlog in terms of how it flows through in terms of sales, but what about the margin profiles is similar improving in terms of what you've recently been seeing?

我想知道，就您目前的積壓訂單而言，它是前端還是後端，更偏向線性類型的積壓訂單，還是更偏向銷售流程？另外，就您最近觀察到的情況而言，利潤率情況是否有所改善？

Yes, I think the margin profile is similar may maybe improving a bit mainly because of the comments I made earlier about the strength of our portfolio. I think the second part of that is I think the characterization is still the same, if you recognize our lead times now come down to more normalized levels of eight to 12 weeks. So the backlog's pretty also front-loaded, but particularly on as Steve mentioned in medical, we're seeing backlogs filling in for the second half of the year, which gives us more confidence again, that at least that part of the market is maybe starting to work through their inventory issues.

是的，我認為保證金狀況類似，可能略有改善，這主要是因為我之前提到過我們投資組合的實力。我認為第二點是，我認為產品特性仍然相同，如果你注意到我們的交貨週期現在已經降至更正常的 8 到 12 週水平。所以積壓訂單也相當集中在前期，但正如史蒂夫在醫療領域提到的那樣，我們看到積壓訂單正在下半年得到填補，這再次讓我們更有信心，至少這部分市場可能正在開始解決他們的庫存問題。

Thank you.

謝謝。

Krish Sankar, TD Cowen.

Krish Sankar，TD Cowen。

Yes, I had two quick questions. One is just on the hyperscale opportunity of. I don't remember a few years ago when you after you took over like another renewed focus on I&M, I don't want to use the term defocused, but less of a focus on hyperscaler. But clearly, you know, with AI and everything, there's a renewed focus on the power management for.

是的，我有兩個問題想問一下。一個是超大規模的機會。我不記得幾年前你接手公司後，是否像之前那樣重新重視 I&M，我不想用「分散注意力」這個詞，但確實減少了對超大規模資料中心的關注。但很顯然，隨著人工智慧等技術的發展，人們重新關注了電源管理。

So just curious, you know, you know, given the fact that you compared to some of your peers, like no other question, that was actually a kind of lagging on that. Do you think any of that deep focus in the last two years is hurting you now because in the past and it's our hyperscalers, very price sensitive. And this like normal, it's extremely winning game for you. But do you think that the focus has kind of been an issue or do you think at the end of the day?

所以只是好奇，你知道，你知道，考慮到你和你的一些同齡人相比，就像其他問題一樣，你在這方面實際上有點落後。你認為過去兩年的深度專注現在是否對你造成了損害，因為過去我們的超大規模資料中心對價格非常敏感。像往常一樣，這對你來說絕對是一場必勝之戰。但你認為這種關注點是否一直是個問題？或者你認為最終結果會如何？

It's really about the product quality that matters for AI servers from a hyperscale standpoint.

從超大規模的角度來看，對於人工智慧伺服器而言，真正重要的是產品品質。

Good question, Krish, and me just recap, you'll note that the decisions we made a few years ago were to invest heavily in semiconductor industrial medical and grow market share as fast as we could because all those products basically averages up from a gross margin standpoint.

問得好，Krish，我簡單回顧一下，你會注意到我們幾年前做出的決定是大力投資半導體、工業和醫療領域，並儘可能快地擴大市場份額，因為從毛利率的角度來看，所有這些產品的平均收益都很高。

So and on the data center side, we have a different a different strategy, and we articulated that a few years ago and we've executed on it. And that is we want to improve the bottom line of that business.

所以，在資料中心方面，我們採取了不同的策略，我們幾年前就制定了這項策略，並且已經付諸實行。我們希望改善這家企業的獲利狀況。

And then keep it there. So the good news is we improved the bottom line over the past two years in data center. And now we're in the process of keeping that type of gross margin performance is still a lot is still above corporate average and probably never will be. But we're much happier with the business today because we can deal with a surge like we're seeing this quarter without impacting our gross margin performance to any significant degree.

然後就把它放在那裡。好消息是，過去兩年我們在資料中心業務的獲利狀況有所改善。現在我們正在努力保持這種毛利率水平，它仍然遠高於公司平均水平，而且可能永遠不會超過平均水平。但我們對目前的業務狀況更加滿意，因為我們能夠應對像本季這樣的業務激增，而不會對我們的毛利率表現產生任何重大影響。

So we're very happy with the business. And part of that move two years ago was to start focusing our engineering teams on more differentiated opportunities. And so what we're seeing now is some of those differential opportunities are developing tend to large scale revenue opportunities for us, which is very helpful. My So less of a commodity focus and more of a differentiated focus, and I think it's paying off for us.

所以我們對業務非常滿意。兩年前，我們採取的這項措施之一就是開始讓我們的工程團隊專注於更具差異化的機會。因此，我們現在看到的是，其中一些差異化機會正在發展成為我們大規模的收入機會，這非常有幫助。因此，我們不再專注於大宗商品，而是更加重視差異化，我認為這對我們來說是值得的。

Got it.

知道了。

And then just a quick another follow-up of all of I know you didn't give the backlog number, but it looks like it's probably in the three 50 to $400 million range. How much of that is semi?

然後，我再快速跟進一下，我知道你沒有給出積壓訂單的具體數字，但看起來可能在 35,000 萬到 4 億美元之間。其中有多少是半成品？

Yes, it's some I'd say it's down. It's down slightly from last quarter. So maybe a little a little higher than that.

是的，我覺得它有點下降了。比上一季略有下降。所以可能比那稍微高一點。

Krish, on I would say the semi proportion is about the same as it's been. And we've commented before that on semi and industrial and medical combined represent about 80% of the of the backlog.

Krish，我認為半數比例和以前差不多。我們之前也提到過，半導體、工業和醫療設備加起來約佔積壓訂單的 80%。

So I don't think those proportions have changed very much with that.

所以我覺得這些比例並沒有太大變化。

I thank you very much.

非常感謝。

Yes.

是的。

Mark Miller, Benchmark.

馬克·米勒，基準。

Was just wondering your interest income had a nice increase. Could you describe what's going on there?

我只是好奇你的利息收入是不是大幅增加了。你能描述一下那裡發生了什麼事嗎？

Yes. As you know, Mark, we did we did raise money from the convert last fall the good news about that is we raised money at 2.5% coupon, and we've been been able to do two things. One, we've been able to concentrate our cash globally quite quite effectively so that we get that cash in the places in accounts where we can invest it. And we've been quite successful at investing that at very good yields on money market, very short term, it notes. And so we're actually generating more interest income than interest expense right now.

是的。馬克，你知道，去年秋天我們確實從Convert籌集了資金，好消息是我們以2.5%的票面利率籌集了資金，我們已經能夠做兩件事。第一，我們已經能夠非常有效地在全球範圍內集中我們的現金，以便將這些現金存放在我們可以投資的帳戶中。報告指出，我們透過對貨幣市場進行短期投資，獲得了非常高的收益率，而且相當成功。因此，我們目前的利息收入實際上超過了利息支出。

Now we're also benefited from the fact that about two thirds of our term loan is still under a swap. Our agreement wherein we're only paying 1.25% interest, and that will come off for that debt amount in September so I think you'll see interest income and interest expense start to come a little more in balance, but we'll still have higher income and expense, but lower than we have today.

現在，我們也受益於大約三分之二的定期貸款仍然處於互換狀態。我們達成的協議規定，我們只需支付 1.25% 的利息，這筆債務的利息將在 9 月免除，所以我認為你會看到利息收入和利息支出開始更加平衡，但我們的收入和支出仍然會更高，但會比現在低。

Okay. So you expect somewhat lower interest expense in the second quarter.

好的。因此，預計第二季的利息支出會略有下降。

I'm sure this is more like the second half this half, this happens in September, Otherwise second quarter auto looks very similar to first quarter when you look at total, other income.

我確信這更像是下半年的情況，這種情況發生在九月。否則，從總收入和其他收入來看，第二季汽車業務看起來與第一季非常相似。

Lower in the second half. Okay. Thank you.

下半場下降。好的。謝謝。

That's right.

這是正確的。

Yes.

是的。