Advanced Energy Industries Inc (AEIS) 2022 Q1 法說會逐字稿

Good day, ladies and gentlemen, and thank you for joining us for this Advanced Energy First Quarter 2022 Earnings Conference Call. (Operator Instructions) Also, please be aware that today's meeting is being recorded.

女士們先生們，美好的一天，感謝您加入我們參加 Advanced Energy 2022 年第一季度收益電話會議。 （操作員說明）另外，請注意今天的會議正在錄製中。

To get us started with opening remarks and introductions, I am pleased to turn the floor over to Vice President of Strategic Marketing and Investor Relations, Mr. Edwin Mok.

為了讓我們開始致開幕詞和介紹，我很高興將發言權交給戰略營銷和投資者關係副總裁 Edwin Mok 先生。

Thank you, operator. Good afternoon, everyone. Welcome to Advanced Energy's first quarter 2022 earnings conference call. With me today are Steve Kelley, our President and CEO; and Paul Oldham, our Executive Vice President and CFO.

謝謝你，運營商。大家下午好。歡迎參加 Advanced Energy 2022 年第一季度收益電話會議。今天和我在一起的是我們的總裁兼首席執行官 Steve Kelley；和我們的執行副總裁兼首席財務官 Paul Oldham。

If you have not seen our earnings press release, you can find it on our website at ir.advancedenergy.com. There, you also find our earnings slide presentation.

如果您還沒有看到我們的收益新聞稿，您可以在我們的網站 ir.advancedenergy.com 上找到它。在那裡，您還可以找到我們的收益幻燈片演示文稿。

Before I begin, I'd like to mention that we will be participating at several investor conferences in the coming months.

在開始之前，我想提一下，我們將在未來幾個月內參加幾個投資者會議。

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, May 4, 2022, and the company assume no obligation to update them. Medium-term targets and long-term aspirational goals presented today should not be interpreted as guidance.

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，並且不是對未來業績的保證。有關這些風險的信息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層截至 2022 年 5 月 4 日的估計，公司不承擔更新這些陳述的義務。今天提出的中期目標和長期理想目標不應被解釋為指導。

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 expenses and unrealized foreign exchange gains or losses. A detailed reconciliation between GAAP and non-GAAP measures can be found in today's press release.

在今天的電話會議上，除非另有說明，否則我們的財務業績是在非 GAAP 財務基礎上呈現的。非 GAAP 業績不包括股票薪酬、攤銷、收購相關成本、重組費用和未實現的外匯損益。可以在今天的新聞稿中找到 GAAP 和非 GAAP 措施之間的詳細對賬。

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

有了這個，讓我把電話轉給我們的總裁兼首席執行官史蒂夫凱利。

Thank you, Edwin. Good afternoon, everyone and thanks for joining the call. First quarter revenue and earnings per share exceeded guidance, largely due to good manufacturing execution and our ability to secure additional key components. Our shipments into the semiconductor market were particularly strong. Demand is robust across all of our target markets, and our order book is at an all-time high.

謝謝你，埃德溫。大家下午好，感謝您加入電話會議。第一季度的收入和每股收益超出了預期，這主要是由於良好的製造執行和我們獲得更多關鍵組件的能力。我們對半導體市場的出貨量特別強勁。我們所有目標市場的需求都很強勁，我們的訂單處於歷史最高水平。

To mitigate the impact of a dynamic supply environment, we will continue to maintain full staffing levels at all of our factories, so that we can react quickly when scarce components become available. We will also continue to purchase components on the open market at a premium, when we can't find those components through normal channels. And finally, we will continue to address intractable supply issues through alternative sourcing and redesigns.

為減輕動態供應環境的影響，我們將繼續在所有工廠保持全員配置，以便在稀缺組件可用時迅速做出反應。當我們無法通過正常渠道找到這些組件時，我們還將繼續在公開市場上以高價購買組件。最後，我們將繼續通過替代採購和重新設計來解決棘手的供應問題。

This aggressive approach to staffing, procurement and component qualification is paying off in the form of higher shipments to our customers over the last 6 months. There are significant incremental costs associated with our mitigation efforts. But we think our approach makes sense for Advanced Energy and for our customers. And I would like to thank our customers for partnering with us to absorb some of those incremental costs.

在過去 6 個月中，這種積極的人員配置、採購和組件鑑定方法以增加對我們客戶的出貨量的形式產生了回報。我們的緩解措施會產生顯著的增量成本。但我們認為我們的方法對 Advanced Energy 和我們的客戶都有意義。我要感謝我們的客戶與我們合作以吸收其中的一些增量成本。

Although we spend a lot of time talking about parts shortages, let me assure you that our primary focus continues to be the development of new technologies and products which provide value to our customers. These technologies and products are critical to our future revenue growth and financial performance.

儘管我們花了很多時間談論零件短缺，但我向您保證，我們的主要重點仍然是開發新技術和產品，為我們的客戶提供價值。這些技術和產品對我們未來的收入增長和財務業績至關重要。

In the first quarter, we launched differentiated products into multiple markets, grew our opportunity funnel and won designs in many proprietary applications. In addition, we recently completed the acquisition of SL Power Electronics, expanding our product portfolio and broadening our customer base in the medical and industrial markets.

第一季度，我們向多個市場推出了差異化產品，擴大了我們的機會渠道，並贏得了許多專有應用的設計。此外，我們最近完成了對 SL Power Electronics 的收購，擴大了我們的產品組合併擴大了我們在醫療和工業市場的客戶群。

Now I'll provide more color on the operating environment. In the first quarter, we overcame a number of COVID-related manufacturing challenges, including an Omicron wave in Malaysia and the regional shutdown in Shenzhen. The operations team's quick response to the changing environment allowed us to exceed our quarterly production goal despite the COVID headwinds.

現在我將提供更多關於操作環境的顏色。在第一季度，我們克服了許多與 COVID 相關的製造挑戰，包括馬來西亞的 Omicron 浪潮和深圳的區域停產。運營團隊對不斷變化的環境的快速反應使我們能夠在 COVID 逆風的情況下超過我們的季度生產目標。

To mitigate supply issues, we continue to qualify alternative ICs and more necessary, redesign entire circuit boards. Customers are partnering with us in these efforts and we are grateful to their support.

為了緩解供應問題，我們繼續對替代 IC 進行鑑定，更必要的是，重新設計整個電路板。客戶在這些努力中與我們合作，我們感謝他們的支持。

I would also like to note that most of our suppliers are keeping up with our demand despite the challenging supply environment and their performance is much appreciated.

我還想指出，儘管供應環境充滿挑戰，但我們的大多數供應商都在滿足我們的需求，他們的表現非常值得讚賞。

Now I'll provide further color for each of our target markets. In the first quarter, revenue from semiconductor customers exceeded $200 million, a new milestone for the company. We expect sales into the semiconductor market to grow sequentially in the second quarter and to continue growing in the second half of the year. Given that outlook, we are confident that AE can grow semiconductor sales faster than the overall wafer fab equipment market in 2022.

現在我將為我們的每個目標市場提供更多顏色。第一季度，來自半導體客戶的收入超過2億美元，是公司的一個新里程碑。我們預計半導體市場的銷售額將在第二季度連續增長，並在下半年繼續增長。鑑於這一前景，我們相信 AE 可以在 2022 年以超過整個晶圓廠設備市場的速度增長半導體銷售。

We are making good progress developing technologies and products for applications such as dielectric etch, remote plasma source and panel-level packaging. These efforts represent upside opportunity for Advanced Energy and will help drive long-term revenue and market share growth for the company.

我們在開髮用於電介質蝕刻、遠程等離子源和麵板級封裝等應用的技術和產品方面取得了良好進展。這些努力代表了 Advanced Energy 的上行機會，並將有助於推動公司的長期收入和市場份額增長。

In the industrial medical market, first quarter revenue grew year-on-year. Demand is strong and our order book increased in the first quarter. We secured a number of important industrial and medical design slots in the first quarter with notable wins in electro surgery, life science, test and measurement and vehicle charging applications.

在工業醫療市場，一季度營收同比增長。需求強勁，我們的訂單在第一季度有所增加。我們在第一季度獲得了多個重要的工業和醫療設計席位，在電外科、生命科學、測試和測量以及車輛充電應用方面取得了顯著勝利。

During the first quarter, we launched the LCM4000, a high-efficiency, high-density power delivery system, particularly well-suited for indoor farming and large-scale commercial lighting applications. This highly differentiated solution will enable our customers to reduce both installation costs and operating costs. Key customer interest in the LCM4000 has already resulted in several large orders.

第一季度，我們推出了 LCM4000，這是一款高效率、高密度的電力傳輸系統，特別適合室內農業和大型商業照明應用。這種高度差異化的解決方案將使我們的客戶能夠降低安裝成本和運營成本。主要客戶對 LCM4000 的興趣已經導致幾個大訂單。

Now I'd like to touch on our recent acquisition of SL Power, which we believe makes Advanced Energy a top tier player in the medical power market. We like the medical market because it offers steady secular growth, long product life cycles and sticky proprietary designs. Medical customers demand highly reliable solutions built on certified lines with customer features. SL Power is a well-known supplier of customized power solutions for leading medical device and equipment makers. Roughly 75% of their revenue is derived from sole sourced products. And its portfolio of low power medical products dovetails nicely with Advanced Energy's high-power solutions. With almost no product overlap, we see a lot of opportunity for cross-selling.

現在我想談談我們最近對 SL Power 的收購，我們相信這使 Advanced Energy 成為醫療電源市場的頂級參與者。我們喜歡醫療市場，因為它提供穩定的長期增長、較長的產品生命週期和粘性專有設計。醫療客戶需要高度可靠的解決方案，這些解決方案建立在具有客戶特性的認證生產線上。 SL Power 是為領先的醫療器械和設備製造商提供定制電源解決方案的知名供應商。他們大約 75% 的收入來自獨家採購的產品。其低功耗醫療產品組合與 Advanced Energy 的高功率解決方案完美契合。由於幾乎沒有產品重疊，我們看到了很多交叉銷售的機會。

Concluding the market commentary, our revenues in the data center computing, telecom and networking markets were up year-on-year. We see continued strong demand in all of these markets.

總結市場評論，我們在數據中心計算、電信和網絡市場的收入同比增長。我們看到所有這些市場的需求持續強勁。

In summary, as demonstrated over the last 6 months, we are gaining momentum as a company. Our operating tempo is good. Our new products are gaining traction and our team is energized.

總之，正如過去 6 個月所證明的那樣，作為一家公司，我們正在獲得動力。我們的經營節奏很好。我們的新產品越來越受歡迎，我們的團隊充滿活力。

With a strong focus on innovation, new product development and customer satisfaction, Advanced Energy is well positioned to deliver sustained profitable growth in the coming years.

憑藉對創新、新產品開發和客戶滿意度的高度關注，Advanced Energy 有望在未來幾年實現持續的盈利增長。

Paul will now review our financial results and provide detailed guidance.

保羅現在將審查我們的財務業績並提供詳細的指導。

Thank you, Steve, and good afternoon, everyone. We delivered first quarter revenue and EPS above the high end of our guidance ranges. The results reflect good execution, our ability to secure additional key components, increased factory output and partial recovery of material cost premiums. Demand continues to be strong and our backlog grew another 9% to a little over $1 billion. However, the supply chain continues to pace our revenue and earnings performance. As a result, we will continue to plan prudently, but we remain optimistic that we are on track to deliver our annualized earnings target of over $6 per share as we exit the fiscal year.

謝謝史蒂夫，大家下午好。我們第一季度的收入和每股收益高於我們指導範圍的高端。結果反映出良好的執行力、我們獲得更多關鍵部件的能力、工廠產量的增加以及材料成本溢價的部分回收。需求繼續強勁，我們的積壓訂單又增長了 9%，達到 10 億美元多一點。然而，供應鏈繼續調整我們的收入和盈利表現。因此，我們將繼續審慎規劃，但我們仍然樂觀地認為，我們有望在本財年結束時實現超過每股 6 美元的年化收益目標。

Now let me go over our financial results. First quarter revenue of $397 million grew 13% year-over-year and it was up slightly from our fourth quarter. Revenue from the semiconductor market was a record $203 million, growing 12% from last year and 13% sequentially. Strong demand and our ability to recover after significant COVID impacts in Malaysia and Shenzhen allowed us to deliver upside to our initial target.

現在讓我回顧一下我們的財務業績。第一季度收入 3.97 億美元，同比增長 13%，略高於第四季度。來自半導體市場的收入達到創紀錄的 2.03 億美元，比去年增長 12%，環比增長 13%。在馬來西亞和深圳受到 COVID 的重大影響後，強勁的需求和我們的恢復能力使我們能夠實現最初的目標。

Looking forward, we anticipate semiconductor revenue to grow sequentially in the second quarter and in the second half of the year. In addition, we are investing in further capacity and production flexibility. This should enable our throughput and capacity in Malaysia to continue to increase every quarter, and we have extended our Shenzhen plant closure to the end of the calendar year.

展望未來，我們預計半導體收入將在第二季度和下半年環比增長。此外，我們正在投資提高產能和生產靈活性。這將使我們在馬來西亞的吞吐量和產能每個季度都能繼續增長，我們已將關閉深圳工廠的時間延長至日曆年年底。

Overall, we expect to significantly increase our semiconductor capacity over the next few quarters, which should allow us to meet our customers' long-term demand as the supply chain improves.

總體而言，我們預計在未來幾個季度內將大幅增加我們的半導體產能，這將使我們能夠隨著供應鏈的改善滿足客戶的長期需求。

For the first quarter, demand in our other markets was also strong and overall backlog increased. However, revenue was paced by supply of critical components as expected. Sales into the industrial and medical market were $83 million, up 6% from a year ago, but down 16% from our record Q4. Data center computing revenue grew 29% year-over-year to $76 million, but declined 5% sequentially; and telecom and networking revenue was $35 million, up 6% from last year, but down 9% from the fourth quarter.

第一季度，我們其他市場的需求也很強勁，整體積壓訂單增加。然而，收入如預期的那樣受到關鍵部件供應的影響。工業和醫療市場的銷售額為 8300 萬美元，比一年前增長 6%，但比創紀錄的第四季度下降 16%。數據中心計算收入同比增長 29% 至 7600 萬美元，但環比下降 5%；電信和網絡收入為 3500 萬美元，比去年增長 6%，但比第四季度下降 9%。

First quarter gross margin was 36.6%, up 110 basis points from last quarter on slightly better mix and higher factory output. Compared to last year, gross margins declined 310 basis points, primarily due to higher material costs and factory inefficiency in the current environment.

第一季度毛利率為 36.6%，較上一季度上升 110 個基點，原因是產品組合略有改善且工廠產量增加。與去年相比，毛利率下降了 310 個基點，這主要是由於當前環境下材料成本上升和工廠效率低下所致。

Premium recoveries, which reflect costs that we've been able to pass onto our customers but at 0 margin alone accounted for 180 basis point impact to gross margin. We expect the higher material costs and related premium recoveries will continue to negatively impact our results in the second quarter. However, we believe that these costs will gradually come down in the second half of the year based on our mitigating actions and some normalization of the supply chain.

保費回收反映了我們已經能夠轉嫁給客戶的成本，但僅在零利潤率時就對毛利率產生了 180 個基點的影響。我們預計較高的材料成本和相關保費回收將繼續對我們第二季度的業績產生負面影響。但是，我們相信，根據我們的緩解措施和供應鏈的一些正常化，這些成本將在下半年逐漸下降。

Operating expenses were $87.6 million, up approximately 2% from last quarter. The sequential increase was due to investments in R&D, partially offset by lower SG&A expense. Operating margin for the quarter was 14.5%. Depreciation for the quarter was $8.4 million and our adjusted EBITDA was $66 million, up from $63 million last quarter.

運營費用為 8760 萬美元，比上一季度增長約 2%。環比增長是由於研發投資，部分被較低的 SG&A 費用所抵消。本季度的營業利潤率為 14.5%。本季度折舊為 840 萬美元，調整後的 EBITDA 為 6600 萬美元，高於上一季度的 6300 萬美元。

Non-GAAP other expense was $2.1 million, including $1.3 million of interest expense and $500,000 of foreign exchange losses. We continue to expect non-GAAP other expense to be in the $2 million range going forward.

非 GAAP 其他費用為 210 萬美元，包括 130 萬美元的利息費用和 500,000 美元的匯兌損失。我們繼續預計未來非 GAAP 其他費用將在 200 萬美元左右。

Our non-GAAP tax rate was 16%, slightly above our target of 15%. The increase was due to a change in U.S. tax rules, effective at the beginning of the year, partially offset by a favorable tax credit. Looking forward, we now expect our GAAP and non-GAAP tax rate to be approximately 19%. Compared to our prior target, this will impact our quarterly earnings by approximately $0.05 per share.

我們的非美國通用會計準則稅率為 16%，略高於我們 15% 的目標。這一增長是由於美國稅收規則的變化，該規則於年初生效，部分被優惠的稅收抵免所抵消。展望未來，我們現在預計我們的 GAAP 和非 GAAP 稅率約為 19%。與我們先前的目標相比，這將影響我們的季度收益約每股 0.05 美元。

Earnings for the quarter were $1.24 per share. This compares to fourth quarter EPS of $1.36, which included a large year-end discrete tax benefit. Excluding this benefit, last quarter earnings would have been $1.21 per share.

本季度每股收益為 1.24 美元。相比之下，第四季度每股收益為 1.36 美元，其中包括大量年終離散稅收優惠。剔除這一收益，上一季度每股收益為 1.21 美元。

Turning now to the balance sheet. We ended the fourth quarter with total cash, including marketable securities of $524 million and the net cash of $136 million. Cash flow from continuing operations was $10 million. The lower operating cash flow was due to higher net working capital, which increased to 120 days.

現在轉向資產負債表。第四季度結束時，我們的現金總額為 5.24 億美元，包括 5.24 億美元的有價證券和 1.36 億美元的淨現金。來自持續經營業務的現金流量為 1000 萬美元。較低的經營現金流是由於較高的淨營運資本，增加到 120 天。

Inventory on a dollar basis increased 7% sequentially and turns were 2.8x. We continue to expect some upward pressure on inventory in the near-term as we prioritize meeting customer demand while pursuing shortages of critical parts. However, inventory turns should normalize as the supply chain improves and shipments increase. Days payable declined slightly to 65 days and DSO increased to 56 days, largely due to timing.

按美元計算的庫存環比增長 7%，周轉率為 2.8 倍。我們繼續預計短期內庫存會出現一些上行壓力，因為我們優先考慮滿足客戶需求，同時尋求關鍵部件的短缺。然而，隨著供應鏈的改善和出貨量的增加，庫存周轉應該會正常化。應付天數略有下降至 65 天，DSO 增加至 56 天，這主要是由於時間安排所致。

During the first quarter, we invested $13.1 million into CapEx, made debt principal payments to $5 million and paid $3.8 million in dividends. In addition, we repurchased $6.6 million of common stock at $80 per share as part of our opportunistic share repurchase program.

第一季度，我們向資本支出投資了 1310 萬美元，償還了 500 萬美元的債務本金，並支付了 380 萬美元的股息。此外，作為機會性股票回購計劃的一部分，我們以每股 80 美元的價格回購了 660 萬美元的普通股。

Before I talk about guidance, I want to provide some financial details on the SL Power acquisition. As we announced, last week we completed the acquisition of SL Power Electronics for $145 million on a cash free, debt free basis, using the cash we have on our balance sheet.

在談論指導之前，我想提供一些有關 SL Power 收購的財務細節。正如我們宣布的那樣，上週我們使用我們資產負債表上的現金，以 1.45 億美元的現金、無債務的方式完成了對 SL Power Electronics 的收購。

SL Power adds approximately $65 million of pro forma revenue on an annualized basis. It is a profitable business with operating margins in the mid-teens and we expect to realize approximately $4 million of cost synergies once we fully integrate the operations. With the highly complementary product portfolio and customers, we believe there are meaningful cross-selling synergies which will accelerate our growth in the medical and industrial markets.

SL Power 每年增加約 6500 萬美元的預估收入。這是一項有利可圖的業務，營業利潤率在十幾歲左右，一旦我們完全整合業務，我們預計將實現約 400 萬美元的成本協同效應。憑藉高度互補的產品組合和客戶，我們相信存在有意義的交叉銷售協同效應，這將加速我們在醫療和工業市場的增長。

Now let me turn to guidance. Our second quarter results will continue to be paced by availability of critical parts, including additional risk from the ongoing COVID lockdowns in China. As a result, we expect Q2 revenue to be approximately $395 million, plus or minus $25 million. Our Q2 guidance assumes semiconductor revenue will continue to grow sequentially and it includes a partial quarter revenue contribution from SL Power.

現在讓我轉向指導。我們第二季度的業績將繼續受到關鍵部件可用性的影響，包括中國持續的 COVID 封鎖帶來的額外風險。因此，我們預計第二季度收入約為 3.95 億美元，上下浮動 2500 萬美元。我們的第二季度指引假設半導體收入將繼續連續增長，其中包括 SL Power 的部分季度收入貢獻。

As we guided previously, we expect Q2 gross margin to be approximately flat to Q1 with similar mix and material cost premiums. We expect operating expenses to be in the $93 million to $95 million range on annual salary increases, continued R&D investment and the addition of SL Power, which adds $3 million to $4 million to our OpEx for the quarter. Including the higher tax rate of approximately 19%, we expect Q2 non-GAAP earnings per share to be $1.05, plus or minus $0.30.

正如我們之前的指導，我們預計第二季度的毛利率將與第一季度大致持平，具有相似的組合和材料成本溢價。我們預計運營費用將在 9300 萬美元至 9500 萬美元之間，包括年薪增長、持續的研發投資和增加 SL Power，這將使我們本季度的運營支出增加 300 萬至 400 萬美元。包括約 19% 的較高稅率，我們預計第二季度非 GAAP 每股收益為 1.05 美元，上下浮動 0.30 美元。

Before I open it up for questions, let me make some additional comments beyond the current quarter. As I mentioned, the operating and supply chain environments remain challenging, and our revenue and financial results are being paced by supply of critical components. However, we are executing well and are making progress in our supply mitigation efforts. Demand and our backlog position are strong and we are investing in further capacity and flexibility to increase output as the supply chain improves. As a result, we continue to believe that we are on track to deliver annualized EPS of greater than $6 per share by Q4 with higher earnings potential in 2023.

在我提出問題之前，讓我在當前季度之外發表一些額外的評論。正如我所提到的，運營和供應鏈環境仍然充滿挑戰，我們的收入和財務業績正受到關鍵部件供應的影響。然而，我們執行得很好，並且在減少供應方面取得了進展。需求和我們的積壓狀況強勁，我們正在投資進一步提高產能和靈活性，以隨著供應鏈的改善而增加產量。因此，我們仍然相信，我們有望在第四季度實現超過每股 6 美元的年化每股收益，並在 2023 年實現更高的盈利潛力。

With that, let's take your questions. Operator?

有了這個，讓我們回答你的問題。操作員？

(Operator Instructions) We'll hear first from Quinn Bolton at Needham & Company.

（操作員說明）我們將首先從 Needham & Company 的 Quinn Bolton 那裡聽到。

Congratulations on the nice results. March was the second quarter where you guys were nicely above guidance on your ability to get component supply. And I'm wondering if you could just give us your updated thoughts on component availability or things starting to loosen up or have some of your efforts to go out secure components on the open market really been the source of upside in the near-term, just kind of thinking about when do you think component availability starts to get more predictable?

祝賀你取得了不錯的成績。 3 月是第二季度，你們獲得組件供應的能力遠遠高於指導。我想知道您是否可以告訴我們您對組件可用性或事情開始放鬆的最新想法，或者您在公開市場上推出安全組件的一些努力確實是近期上漲的來源，只是想一想您認為組件可用性何時開始變得更可預測？

Yes. Quinn, this is Steve. Good question. I think it's a daily battle essentially. We get upsides, we get downsides literally every day from our critical IC suppliers. We've been fighting this battle for more than a year. So I think we're getting a bit better at it. So you've seen some of the results of our efforts as we do various channels and brokers, I think that's part of it.

是的。奎因，這是史蒂夫。好問題。我認為這本質上是一場日常戰鬥。我們每天都從我們的關鍵 IC 供應商那裡得到好處，我們也從字面上得到壞處。我們已經為這場戰鬥打了一年多。所以我認為我們在這方面做得更好了。所以你已經看到了我們在各種渠道和經紀人方面所做努力的一些結果，我認為這是其中的一部分。

The other part is, we've been working pretty hard on alternative qualifications as well as board redesigns to get around some of the more intractable supply issues and our customers have been working very closely with us to qualify those solutions quickly, and so that's also played a part in our success in the last 2 quarters, and we see that these alternative solutions will play a bigger role moving forward in 2022. That's why we're optimistic about the second half.

另一部分是，我們一直在努力進行替代資格認證以及電路板重新設計，以解決一些更棘手的供應問題，我們的客戶一直與我們密切合作，以快速認證這些解決方案，所以這也是對我們過去兩個季度的成功起到了一定的作用，我們看到這些替代解決方案將在 2022 年發揮更大的作用。這就是我們對下半年持樂觀態度的原因。

My second question really for Paul. It sounds like you're reiterating your guidance for $6 of annualized EPS. And I think in past quarters, that was sort of on our revenue run rate of something a little bit north of $400 million. I guess my question is your backlogs up now to over $1 billion. It certainly seems like if you can get component supply that the natural run rate of revenue would be well above that $400 million level. I want to ask you to say when that might happen, but am I right to think that when you're no longer paced by component issues, the revenue could be nicely ahead of $400 million on a quarterly basis for several quarters?

我的第二個問題真的是保羅。聽起來您是在重申 6 美元的年化 EPS 的指導意見。我認為在過去的幾個季度中，我們的收入運行率略高於 4 億美元。我想我的問題是你現在積壓的訂單超過 10 億美元。如果你能獲得組件供應，那麼收入的自然運行率似乎肯定會遠高於 4 億美元的水平。我想請您說說什麼時候會發生這種情況，但我認為當您不再受組件問題的困擾時，收入可能會在幾個季度內每季度超過 4 億美元，這是否正確？

Yes, I think that's exactly right, Quinn, and it really comes down to how available the materials are, and also what we have to pay for them. We have a little higher revenues now, but part of that is these premium recoveries where we have more revenue, but it's essentially at a pass through costs. So over time, I'd expect that would decrease, the actual product revenue will increase and that's where you get some of the lift in gross margin as sales improve as well. But you're exactly right, it will be paced by the availability of parts and we're doing everything inside the company to put ourselves in a position to get as many parts as we can, as well as be prepared as those parts become available to deliver quickly to our customers.

是的，我認為這是完全正確的，奎因，這實際上取決於材料的可用性，以及我們必須為它們支付的費用。我們現在的收入略高一些，但其中一部分是這些保費回收，我們有更多的收入，但它基本上是通過成本。因此，隨著時間的推移，我預計這會減少，實際產品收入會增加，這就是隨著銷售額的提高，毛利率也會有所提高的地方。但你是完全正確的，這將取決於零件的可用性，我們正在公司內部盡一切努力使我們能夠獲得盡可能多的零件，並在這些零件可用時做好準備快速交付給我們的客戶。

Next, we'll hear from Mehdi Hosseini at SIG.

接下來，我們將聽取 SIG 的 Mehdi Hosseini 的講話。

When I look at your reported March revenue moving forward to include or exclude the impact of SL Power, you were still able to have north of $20 million of revenue. And I'm just curious how should I think about that upside driven by our ability to procure components in the open market versus other factors, if you can help us to discuss other factors? And I have a follow-up.

當我查看您報告的 3 月份收入向前推進以包括或排除 SL Power 的影響時，您仍然能夠擁有超過 2000 萬美元的收入。我很好奇，如果你能幫助我們討論其他因素，我應該如何考慮我們在公開市場上採購組件的能力與其他因素驅動的優勢？我有一個後續行動。

Yes, Mehdi, let me just make a comment there. I think there are 2 main factors that helped us in Q1. The first was indeed our ability to source more components and to put some work around into play. But the second was our ability to react quickly to the COVID slowdown in Malaysia and the COVID shutdown in Shenzhen. And so the factories recovered very quickly and actually exited the quarter at a very high operating tempo. So the combination of good execution, factories and improved procurement of parts really allowed us to hit the number in Q1.

是的，Mehdi，讓我在這裡發表評論。我認為有兩個主要因素在第一季度幫助了我們。首先確實是我們採購更多組件並將一些工作付諸實踐的能力。但第二個是我們對馬來西亞的 COVID 放緩和深圳的 COVID 關閉做出快速反應的能力。因此，工廠恢復得非常快，實際上以非常高的運營節奏退出了本季度。因此，良好的執行力、工廠和改進的零件採購相結合，確實讓我們在第一季度達到了目標。

Yes. And I appreciate the execution, operational execution, but what is interesting is that it seems like the component's availability is there if you're willing to pay a premium, especially if you were going in the open market?

是的。我很欣賞執行、運營執行，但有趣的是，如果您願意支付溢價，尤其是如果您要進入公開市場，組件的可用性似乎就在那裡？

Yes, I think that's true at some level. There is a lot of components that we go after that we don't actually get. So it does come down to both what's available and as Steve said, I think we've gotten pretty adept at trying to get what's out there, but really that's the limiting factor. And of course, that's very hard to predict because the shortages are also dynamic. We think you're covered in some cases, and then there should be commit or something and you're having to find parts quickly. So it continues to be a dynamic environment. I think again that we were able to do better this quarter in getting parts, and our factories were then able to quickly turn those into product despite the COVID headwinds.

是的，我認為這在某種程度上是正確的。我們追求的很多組件實際上並沒有得到。所以它確實歸結為可用的東西，正如史蒂夫所說，我認為我們已經非常擅長嘗試獲取那裡的東西，但實際上這是限制因素。當然，這很難預測，因為短缺也是動態的。我們認為你在某些情況下已經被覆蓋，然後應該有提交或其他東西，你必須快速找到零件。所以它仍然是一個動態的環境。我再次認為，本季度我們能夠在獲得零件方面做得更好，儘管有 COVID 逆風，但我們的工廠隨後能夠迅速將這些零件轉化為產品。

Sure. Okay. And as my follow-up, now that you're on track to head north of $400 million of the quarterly revenue and exiting the year at annualized earnings of $6 and with more than $10 of your cash per share, why not become aggressive with capital return?

當然。好的。作為我的後續行動，既然你的季度收入有望超過 4 億美元，並以 6 美元的年化收益和超過 10 美元的每股現金退出今年，為什麼不積極進取資本呢？返回？

Last year, we did buy quite a lot of stock back. You'll see we did buy some stock back this last quarter and our opportunistic share repurchase plan continues to be one of the tools that we have. And as every quarter, we'll assess on a variety of factors to determine how aggressive we should be with that repurchase program.

去年，我們確實回購了很多股票。你會看到我們在上個季度確實回購了一些股票，我們的機會主義股票回購計劃仍然是我們擁有的工具之一。和每個季度一樣，我們將評估各種因素，以確定我們應該對該回購計劃採取多積極的態度。

Our next question today comes from Steve Barger at KeyBanc Capital Markets.

我們今天的下一個問題來自 KeyBanc Capital Markets 的 Steve Barger。

I just want to make sure I understand the guidance. The midpoint of the revenue guide, would you put you back at record levels like 4Q and 1Q? And in those quarters, non-GAAP EPS averaged about $1.30 per quarter. You're guiding to $1.05 at the midpoint. I hear you on tax rate that could be an echo, but what are the other factors that will drive operating margin lower sequentially on higher revenue?

我只是想確保我理解指南。收入指南的中點，你會讓你回到創紀錄的水平，如第四季度和第一季度嗎？在這些季度中，非 GAAP 每股收益平均約為每季度 1.30 美元。您在中點指導 1.05 美元。我聽說你的稅率可能是一種迴聲，但還有哪些其他因素會導致營業利潤率因收入增加而連續下降？

Yes, I think there is a couple of factors, Steve. The first is that in that roughly flat revenue or slightly higher, does include partial quarter of SL Power. So that's revenue that helps us in Q2, but as you know, it comes with full cost structure. So it's not leveraged revenue, if you will. So if you exclude that, our product revenue, it's actually we're projecting it a little bit lower in Q2 than we got in Q1. I think that's the biggest thing. So you're just getting a little bit of headline benefit of the acquisition.

是的，我認為有幾個因素，史蒂夫。首先是在大致持平或略高的收入中，確實包括了 SL Power 的部分季度。所以這是在第二季度幫助我們的收入，但正如你所知，它帶有完整的成本結構。所以這不是槓桿收入，如果你願意的話。因此，如果你排除它，我們的產品收入，實際上我們在第二季度的預測比第一季度低一點。我認為這是最重要的事情。所以你只是從收購中獲得了一點頭條新聞。

Now over time, as our organic revenues increase because there is more parts and of course we'd expect that fall through to occur, but that's the biggest factor.

現在隨著時間的推移，隨著我們的有機收入增加，因為有更多的部分，當然我們預計會發生這種情況，但這是最大的因素。

Got it, okay. And order rates for specialty industrial equipment were strong through 1Q, just broadly speaking, and all the commentary from the companies that have reported suggested trends remain strong in April and really no cracks in demand. So understanding that we're going to layer in SL Power into industrial and medical, just how are you thinking about organic growth in that segment for 2Q or the year, if you could?

知道了，好的。從廣義上講，特種工業設備的訂單率在第一季度表現強勁，所有報告的公司的評論都表明 4 月份的趨勢依然強勁，需求確實沒有出現裂痕。因此，了解我們將把 SL Power 分層到工業和醫療領域，如果可以的話，您如何考慮第二季度或今年該領域的有機增長？

Yes, Steve. The organic growth in I&M is quite impressive. The only thing holding us back right now are critical parts. And I think some of the shortages we have in I&M are more acute than what we've seen in semiconductor. So there has been a real focus on trying to procure parts for the industrial medical business and we're very sensitized to it, but there's a lot of pent-up revenue and profit and our current backlog for the industrial medical markets.

是的，史蒂夫。 I&M 的有機增長令人印象深刻。現在唯一阻礙我們的是關鍵部件。而且我認為我們在 I&M 中的一些短缺比我們在半導體中看到的更為嚴重。因此，我們真正關注的是為工業醫療業務採購零件，我們對此非常敏感，但有很多被壓抑的收入和利潤，以及我們目前對工業醫療市場的積壓。

I guess if you could explain on the supply side, can you talk about what the order rates were year-over-year in I&M?

我想如果你能在供應方面解釋一下，你能談談 I&M 的同比訂單率是多少嗎？

I can say that our backlog went up in the first quarter. So we continue to receive orders in excess of what we could ship.

我可以說我們的積壓在第一季度增加了。因此，我們繼續收到超過我們可以發貨的訂單。

Our next question today comes from the line of Paretosh Misra with Berenberg. I do hope I said your name correctly.

我們今天的下一個問題來自 Paretosh Misra 與 Berenberg 的對話。我真希望我沒說錯你的名字。

Yes, that was perfect. Can you talk about the mix in your backlog a bit? Is the mix similar to your revenue mix or it's heavier on your semiconductor business?

是的，那太完美了。您能談談積壓工作中的組合嗎？這種組合與您的收入組合相似還是對您的半導體業務更重要？

Yes. In general, I'd say it's a very healthy mix. Broadly speaking, I'd say it's more healthy than our average revenue mix. Broadly I'd say over 80% is either semiconductor or industrial medical products.

是的。總的來說，我會說這是一個非常健康的組合。從廣義上講，我會說它比我們的平均收入組合更健康。從廣義上講，我會說超過 80% 是半導體或工業醫療產品。

Got it. And then how should we think about the output at your Shenzhen facility between now and the end of the year given your current plan?

知道了。那麼根據你們目前的計劃，我們應該如何考慮你們深圳工廠從現在到年底的產量？

Yes. So we -- as a reminder, we decided to keep open the Shenzhen plant through the end of this year. And so, the reason we did that is because we need the capacity and I can say that today the Shenzhen plant is doing an excellent job with output. In fact, it's the highest we've seen output in many quarters.

是的。所以我們 - 提醒一下，我們決定在今年年底之前繼續開設深圳工廠。因此，我們這樣做的原因是因為我們需要產能，我可以說今天深圳工廠的產量非常出色。事實上，這是我們在許多季度看到的最高產出。

So we expect that they're going to be a solid contributor over the course of 2022. And at the same time, we're bringing up our production in Malaysia. So we're setting new output records every month at our Shenzhen facility and we're getting more efficient and increasing output on a regular basis. So we think we're in good shape on the semiconductor production side.

因此，我們預計他們將在 2022 年期間做出堅實的貢獻。與此同時，我們將在馬來西亞進行生產。因此，我們在深圳的工廠每個月都在創造新的產量記錄，而且我們的效率越來越高，產量也在定期增加。因此，我們認為我們在半導體生產方面的狀況良好。

(Operator Instructions) We'll hear next from the line of Krish Sankar at Cowen & Company.

（操作員說明）接下來我們將聽到 Cowen & Company 的 Krish Sankar 的講話。

I had a couple of them, actually. Paul, did you mention in your guide of $395 million, how much is SL Power contributing?

實際上，我有幾個。保羅，您在 3.95 億美元的指南中是否提到 SL Power 貢獻了多少？

We did mention it specifically, but it's about $65 million to $66 million annualized if you look at last year's results and we close the transaction in the last week of April. So you can kind of roughly do the math to get an estimate of the contribution.

我們確實特別提到了它，但如果你看一下去年的結果，我們在 4 月的最後一周完成交易，年化金額約為 6500 萬至 6600 萬美元。所以你可以粗略地做數學來估計貢獻。

Got it. All right. And then on your June guidance, you clearly said that semi should grow sequentially. And if I layer in the fact that SL will help and then is it fair to assume that semi and I&M growth sequentially while telecom and data centers down in June?

知道了。好的。然後在你 6 月份的指導中，你明確表示 semi 應該連續增長。如果我將 SL 將有所幫助這一事實分層，那麼假設 semi 和 I&M 連續增長而電信和數據中心在 6 月份下降是否公平？

Yes, let me comment here, Krish. Our guide is substantially better than what we guide in Q1, but it's less than what we actually delivered in Q1. And really what's going on is there are couple key uncertainties that we deal with every quarter. One of the critical IC decommits an upside. So it's very difficult to predict.

是的，讓我在這裡發表評論，Krish。我們的指南比我們在第一季度的指南要好得多，但比我們在第一季度實際交付的要少。實際上，我們每個季度都會處理幾個關鍵的不確定性。其中一個關鍵的 IC 取消了上行空間。所以很難預測。

The second one we have that we're dealing with this quarter are the COVID lockdowns in China. And it's really hard to precisely quantify the impact of these lockdowns. We know they are impacting various parts of our supply chain. They're not impacting our factories, but they are impacting our suppliers. And so we did take a bit of a cautious approach to our Q2 guidance.

我們本季度要處理的第二個問題是中國的 COVID 封鎖。而且很難準確量化這些封鎖的影響。我們知道它們正在影響我們供應鏈的各個部分。它們不會影響我們的工廠，但會影響我們的供應商。因此，我們確實對第二季度的指導採取了一些謹慎的態度。

Got it. Super helpful. And then just a final question. Steve, you mentioned in the past I think it's been almost the good part of the last 6 months or so about dealing within paying a premium or a massive premium with the third-party broker, I'm just kind of curious when I look over the last month or 2 months or 3 months, would you say that the amount you paid to those brokers, has it been going up or has it been flat or do you think it's actually rolling over from what you paid like a few months ago?

知道了。超級有幫助。然後是最後一個問題。史蒂夫，你過去提到過我認為過去 6 個月左右的大部分時間都在與第三方經紀人支付溢價或巨額溢價進行交易，我只是有點好奇，當我看上個月或 2 個月或 3 個月，你會說你支付給這些經紀人的金額，它是在上升還是持平，或者你認為它實際上是從你幾個月前支付的金額開始滾動？

It's a good question. As Steve said, it's sort of the day-to-day battle. So I think we're a little cautious about trying to find trends. But in generally, I'd say there is indications that the incoming rate of those is getting better, maybe not what's coming in the door, but what we see out there is maybe trending better and that's part of what leads us to conclude that we are on track to what we said earlier that towards the latter part of the year, we should see these things coming down. So I don't want to get ahead of myself too much just because it's a dynamic environment.

這是個好問題。正如史蒂夫所說，這是一種日常戰鬥。所以我認為我們在嘗試尋找趨勢時有點謹慎。但總的來說，我想說的是，有跡象表明這些人的進貨率正在好轉，也許不是進貨率，但我們看到的可能是趨勢更好，這部分導致我們得出結論，我們正朝著我們之前所說的方向發展，到今年下半年，我們應該會看到這些事情發生。所以我不想僅僅因為這是一個動態的環境就太超前了。

Steve already commented on the China, COVID lockdowns and the impact on the supply chain. So -- but we're cautiously optimistic perhaps that those are starting to improve.

Steve 已經就中國、COVID 封鎖以及對供應鏈的影響發表了評論。所以 - 但我們對這些開始改善持謹慎樂觀態度。

Well, I mean maybe if I can squeeze one lastly, Paul. Based on what you just said in your comments that Q4 exit run rate for our EPS should be over $6 plus annualized. But in the past you said that gross margins shouldn't check In the second half. Should we still assume it or do you think gross margin inflection is more Q4 story rather than a Q3?

好吧，我的意思是如果我能最後擠一個，保羅。根據您剛才在評論中所說的，我們 EPS 的第四季度退出運行率應該超過 6 美元加上年化。但過去你說毛利率不應該在下半年檢查。我們是否仍然應該假設它，或者您認為毛利率的變化更多是第四季度的故事而不是第三季度？

Yes, it's a good question. I think, as we thought about that gross margins in total will be up in the second half, but you should really think of it as a more of a Q4 than in Q3, maybe some modest improvement in Q3, and then more in Q4. But look, you're hitting on exactly the key issue. To the degree that these premiums can subside, that's going to help us. And the question is, is that sooner or later. And our best view is when we get the most benefit of that is closer to Q4, but we are seeing some signs that it could be modestly improving.

是的，這是個好問題。我認為，正如我們考慮的那樣，下半年總毛利率會上升，但你真的應該把它看作是第四季度而不是第三季度，也許第三季度會有一些小幅改善，然後第四季度會有更多改善。但是你看，你恰好觸及了關鍵問題。在這些保費可以消退的程度上，這將對我們有所幫助。問題是，這是遲早的事。我們最好的看法是當我們從中獲得最大收益時接近第四季度，但我們看到一些跡象表明它可能會適度改善。

Hans Chung with Balyasny (sic) [D.A. Davidson].

Hans Chung 與 Balyasny（原文如此）[D.A.戴維森]。

This is Hans Chung from D.A. Davidson. So I think my first question is, it's very encouraging like regarding your commentary on the semiconductor business to go to outpace the WFE outlook this year. So can you kind of elaborate like what's the underlying driver is more like the share gain totally or it's more like we have the component critical parts to be available, so we're able to ship and we're going to ship that to fill the -- ship to backlog, or it's just maybe new part rents and something like that, just anything there would be helpful?

我是 D.A. 的 Hans Chung。戴維森。所以我想我的第一個問題是，關於你對半導體業務的評論今年超過 WFE 展望，這是非常令人鼓舞的。那麼你能不能詳細說明一下，潛在的驅動因素是什麼，更像是完全的份額增長，或者更像是我們有可用的關鍵部件，所以我們能夠發貨，我們將發貨來填補-- 運送到積壓訂單，或者可能只是新的零件租金和類似的東西，任何有幫助的東西？

Yes. Let me just answer your question in 2 parts, Hans. So your immediate question is what's driving our optimism for this year in our growth story as we go through the remaining quarters of 2022. And that's simply tied to 2 things. The first is, we're expecting improved parts availability based on our activities and the second is our factories operating tempo is quite good and we expect to sustain that for the remainder of the year. So I think that's really going to drive our growth as we accelerate through the course of 2022.

是的。漢斯，讓我分兩部分回答你的問題。因此，您的直接問題是，在我們經歷 2022 年剩餘的幾個季度時，是什麼促使我們對今年的增長故事持樂觀態度。這與兩件事有關。首先是，我們期望根據我們的活動提高零件可用性，其次是我們工廠的運營節奏非常好，我們希望在今年餘下的時間裡保持這種狀態。所以我認為這真的會推動我們的增長，因為我們會在 2022 年加速發展。

But when it comes to market share, in our business in semiconductor, it tends to be over years that we measure market share because we are trying to win design slots in new equipment from the major equipment makers. And then if we win the slot, we hit that business for many years afterwards. So the share really doesn't shift that much on a monthly or quarterly basis. It shifts over the course of years. And so what we're doing there is we're defending our current position in conductor etch, which is our strongest area, has been for quite some time. But we're also planting seeds in new markets. So we have new products that we've launched into the dielectric etch market, into the remote plasma source market, into the flat panel market. So we think that by doing this, we can increase our served market essentially and really drive our growth in 2023 and '24.

但是當談到市場份額時，在我們的半導體業務中，我們往往需要多年時間來衡量市場份額，因為我們正試圖從主要設備製造商那裡贏得新設備的設計席位。然後，如果我們贏得了這個位置，我們就會在之後的很多年裡從事這項業務。因此，該份額實際上並沒有每月或每季度發生太大變化。它隨著時間的推移而變化。因此，我們在那裡所做的是捍衛我們目前在導體蝕刻方面的地位，這是我們最強大的領域，已經有一段時間了。但我們也在新市場播下種子。因此，我們將新產品投放到電介質蝕刻市場、遠程等離子源市場和平板市場。因此，我們認為通過這樣做，我們可以從根本上增加我們服務的市場，並真正推動我們在 2023 年和 24 年的增長。

Got it. That's helpful. So and the next question, just can you provide some colors around the end market in industrial medical or the data center to account? It seems like they imply same quarter guidance basically, these combine will decline sequentially. And I just want to know like, are all these going to decline sequentially or -- ?

知道了。這很有幫助。那麼下一個問題，您能否提供一些關於工業醫療或數據中心終端市場的顏色來說明？似乎它們基本上暗示了同一季度的指導，這些組合將依次下降。我只想知道，所有這些都會依次下降還是——？

I think the only way to thinking about this, Hans, is that it's all a function of supply. We have huge pent-up demand in all the markets you just mentioned, whether it's industrial medical, data center and telecom networking, you name it. We have a very solid order book in all of those markets. And so, as we get parts, we will be able to maximize our output, but this has nothing to do with demand. It's all about supply right now.

漢斯，我認為思考這個問題的唯一方法是，這完全取決於供應。在您剛才提到的所有市場中，我們都有巨大的被壓抑的需求，無論是工業醫療、數據中心還是電信網絡，應有盡有。我們在所有這些市場都有非常可靠的訂單。因此，當我們獲得零件時，我們將能夠最大化我們的產量，但這與需求無關。現在一切都與供應有關。

Hans? Operator, we're ready for the next question.

漢斯？接線員，我們準備好迎接下一個問題。

Gentlemen, apologies for the delay. Once again, Mr. Chung, please re-signal to complete your question. We'll move forward to Graham Price with Raymond James.

先生們，抱歉耽擱了。再一次，鍾先生，請重新信號以完成您的問題。我們將與 Raymond James 一起前往 Graham Price。

I guess, just quickly on the SL Power acquisitions. You've highlighted the cross-selling and integration synergies there. Just wondering kind of how quickly you see those playing out? And then just more broadly, how the margins for the acquired business compare to the legacy business?

我想，很快就對 SL Power 進行了收購。您已經強調了那裡的交叉銷售和整合協同作用。只是想知道您看到這些遊戲的速度有多快？然後更廣泛地說，收購業務的利潤率與傳統業務相比如何？

Yes. So let me just make a comment about the integration and how we intend to exploit the sale synergies. So first, we've taken a very strong approach to integration, immediately the factories of SL Power reporting directly into our Chief Operating Officer and their sales force is reporting directly to our Chief Sales Officer. And then the remaining people at SL Power, the engineering, marketing and support people are reporting to the former President, Russell, who now has responsibility for all of the medical power products that AE makes, not just the SL Power products, but also the Advanced Energy products. And together, we think the unconstrained demand there this year is well over $100 million. So it's a good size business for us and it makes us to top tier player.

是的。因此，讓我就整合以及我們打算如何利用銷售協同效應發表評論。因此，首先，我們採取了非常強有力的整合方法，SL Power 的工廠立即直接向我們的首席運營官報告，他們的銷售人員直接向我們的首席銷售官報告。然後 SL Power 的其餘人員，工程、營銷和支持人員向前總裁 Russell 匯報，他現在負責 AE 生產的所有醫療電源產品，不僅是 SL Power 產品，還包括先進能源產品。而且，我們認為今年那裡不受限制的需求遠遠超過 1 億美元。所以這對我們來說是一個規模不錯的業務，它使我們成為頂級玩家。

Like I said in my script, we think the medical market is a good space for us, it's high mix, it's low volume. It's mostly sole source business and that's right in our wheelhouse essentially. So what we're going to do moving forward is we're basically training our sales force. The SL Power sales force to sell AE products and the AE sales force to sell SL Power products, and we have a particular focus on medical accounts and the secondary focus on select industrial accounts. And we think together, we could do a very good job cross-selling. Because SL Power was strong at accounts where we weren't, and we're strong at accounts were SL Power wasn't. So we think it's a very good match. And I actually visited there Friday last week, went down to Calabasas and welcomed the SL Power team to Advanced Energy and -- there's a lot of energy, a lot of positive energy from the team down there. I think it's going to be a very good match between Advanced Energy and SL Power.

就像我在我的劇本中所說的那樣，我們認為醫療市場對我們來說是一個很好的空間，它是高組合，低容量。它主要是單一來源業務，這基本上就在我們的操舵室裡。因此，我們下一步要做的就是培訓我們的銷售人員。 SL Power 銷售人員銷售 AE 產品，AE 銷售人員銷售 SL Power 產品，我們特別關注醫療客戶，其次關注特定的工業客戶。我們一起思考，我們可以很好地完成交叉銷售。因為 SL Power 在我們不擅長的客戶方面表現出色，而我們在 SL Power 不擅長的客戶方面表現出色。所以我們認為這是一場非常好的比賽。實際上，我上週五訪問了那裡，去了卡拉巴薩斯，歡迎 SL Power 團隊加入 Advanced Energy，那裡的團隊充滿活力，充滿正能量。我認為 Advanced Energy 和 SL Power 之間的匹配非常好。

Yes. Maybe just to comment on the business model, I'd say the financial profile coming out of the gate is very similar to Advanced Energy. They've built pretty similar products, they are in differentiated markets and still you look generally we already mentioned operating margins are in the mid-teens. It's pretty similar to AE today. Gross margins are around 40%, so again pretty similar. And as we combine the organizations, as Steve said, there's a lot of opportunity to grow the business. And with that and the other integration actions, there's opportunity to grow, I'll say, the bottom line or earnings, probably faster even in the top line. So I think it's a very natural fit and a lot of opportunity for us to grow in the medical market as we go forward.

是的。也許只是評論商業模式，我會說剛出爐的財務狀況與 Advanced Energy 非常相似。他們製造了非常相似的產品，他們處於差異化的市場，但你仍然總體上看，我們已經提到營業利潤率在十幾歲左右。它與今天的 AE 非常相似。毛利率約為 40%，因此再次非常相似。正如史蒂夫所說，當我們合併這些組織時，有很多機會來發展業務。有了那個和其他整合行動，就有機會增長，我會說，底線或收益，甚至可能在頂線更快。所以我認為這是一個非常自然的契合，並且隨著我們的前進，我們有很多機會在醫療市場上發展。

Got it. And then for my second one just kind of a housekeeping one. You mentioned the income tax rate going forward will be 19%, which looks like just not the highest than it's been in a few years. So I'm just trying to get a little clarity on what's causing that?

知道了。然後是我的第二個，只是一種家政服務。你提到未來的所得稅稅率將是 19%，這看起來不是幾年來最高的。所以我只是想弄清楚是什麼原因造成的？

Yes. There was a change in the U.S. tax law that was effective at the beginning of the year that essentially requires companies to capitalize their R&D expenses rather than to expense them. This was something that was put in place back in 2017 as part of the Tax Cut and Jobs Act. That became effective. Obviously, it didn't impact us as much in the first quarter because we had some other benefits. But looking forward, it's about a 400 basis point impact.

是的。今年年初生效的美國稅法發生了變化，本質上要求公司將研發費用資本化，而不是將其計為費用。這是 2017 年作為減稅和就業法案的一部分實施的。那變得有效了。顯然，它在第一季度對我們的影響沒有那麼大，因為我們還有其他一些好處。但展望未來，這將產生大約 400 個基點的影響。

You can probably do some reading about it, it's affecting all companies particularly technology companies, and I think there is some hope overtime that or maybe even expectation that that will get rolled back or repealed. But at this point, that's the current tax law, so that's what reflected going forward.

您可能可以讀一讀它，它正在影響所有公司，尤其是科技公司，我認為隨著時間的推移會有一些希望，甚至可能期望它會被回滾或廢除。但在這一點上，這是現行的稅法，所以這就是未來的反映。

(Operator Instructions) Mr. Chung, apologies for the audio issue earlier. Please go ahead, Your line is open once again, sir.

（操作員說明）鍾先生，對於之前的音頻問題深表歉意。請繼續，先生，您的線路再次開通。

Okay. Yes, just quick one. So can you give us some sense about the gross margin impact from the high premium paid for the second quarter? I know you gave the 180 basis point for first quarter, but what about second quarter?

好的。是的，只是快速的一個。那麼，您能否讓我們了解一下第二季度支付的高額保費對毛利率的影響？我知道你在第一季度給出了 180 個基點，但第二季度呢？

Yes. We didn't guide to that specifically, but in my prepared remarks, we said that we expected those premiums, the premiums and related recoveries to be about the same as it was in Q1, the level of those things.

是的。我們沒有具體指導這一點，但在我準備好的發言中，我們說過我們預計這些保費、保費和相關的回收率與第一季度的水平大致相同，這些東西的水平。

And we have no further signals from the audience at this time. I am pleased to turn the floor back over to Mr. Steve Kelley for any additional or closing remarks.

目前我們沒有聽眾發出進一步的信號。我很高興將發言權轉回給 Steve Kelley 先生，讓他發表任何補充意見或結束髮言。

Thank you, operator. And I'd just like to recap our key messages. First, demand for our products is very strong. Second, we are on track to deliver solid operating results in the second quarter and even better results in the second half. And finally, we are squarely focused on developing innovative technologies and products for our customers. And thanks for joining the call today.

謝謝你，運營商。我只想重述一下我們的關鍵信息。首先，對我們產品的需求非常旺盛。其次，我們有望在第二季度取得穩健的經營業績，並在下半年取得更好的業績。最後，我們專注於為客戶開發創新技術和產品。感謝您今天加入電話會議。

Ladies and gentlemen, this does conclude today's Advanced Energy first quarter 2022 earnings call. We thank you all for your participation. You may now disconnect your lines. Have a great day.

女士們，先生們，今天的 Advanced Energy 2022 年第一季度財報電話會議到此結束。感謝大家的參與。您現在可以斷開線路。祝你有美好的一天。