Allegro Microsystems Inc (ALGM) 2025 Q2 法說會逐字稿

Good morning, and welcome to the Allegro MicroSystems second-quarter fiscal 2025 earnings conference call. (Operator Instructions) Please be advised that today's conference call is being recorded.

早安，歡迎參加 Allegro MicroSystems 2025 財年第二季財報電話會議。（操作員說明）請注意，今天的電話會議正在錄音。

I would now like to hand the conference over to Jalene Hoover, Vice President of Investor Relations and Corporate Communications.

我現在想將會議交給投資者關係和企業傳播副總裁賈琳·胡佛 (Jalene Hoover)。

Thank you, Corey. Good morning, and thank you for joining us for today's call to discuss Allegro's second-fiscal quarter 2025 results. I'm joined today by Allegro's President and Chief Executive Officer, Vineet Nargolwala; and Allegro's Chief Financial Officer, Derek D'Antilio. They will provide highlights of our business, review our quarterly financial performance and share our third-quarter outlook. We will follow our prepared remarks with a Q&A session.

謝謝你，科里。早安，感謝您參加今天的電話會議，討論 Allegro 的 2025 年第二財季業績。今天與我一起出席的還有 Allegro 總裁兼執行長 Vineet Nargolwala；以及 Allegro 的財務長 Derek D'Antilio。他們將介紹我們的業務亮點，回顧我們的季度財務表現並分享我們的第三季展望。我們將在準備好的發言之後進行問答環節。

Our earnings release and prepared remarks include certain non-GAAP financial measures. The non-GAAP financial measures that are discussed today are not intended to replace be a substitute for our GAAP financial results. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in our earnings release, which is available in the Investor Relations page of our website at www.allegromicro.com. This call is also being webcast and a replay will be available in the Events and Presentations section of our IR page shortly.

我們的收益發布和準備好的評論包括某些非公認會計準則財務指標。今天討論的非公認會計準則財務指標無意取代我們的公認會計準則財務表現。這些非 GAAP 財務指標與最直接可比較的 GAAP 財務指標的對帳已包含在我們的收益報告中，您可以在我們網站 www.allegromicro.com 的投資者關係頁面上查看該報告。此次電話會議也將進行網路直播，並且很快將在我們的 IR 頁面的活動和演示部分提供重播。

During the course of this conference call, we will make projections and other forward-looking statements regarding future events or the future financial performance of the company. We wish to caution that such statements are based on current expectations and assumptions as of today's date and as a result, are subject to risks and uncertainties that could cause actual results to differ or events to differ materially from projections.

在本次電話會議期間，我們將對未來事件或公司未來財務表現做出預測和其他前瞻性陳述。我們希望提醒您，此類陳述是基於截至今日的當前預期和假設，因此存在風險和不確定性，可能導致實際結果與預測有重大差異或事件與預測有重大差異。

Important factors that can affect our business, including factors that could cause actual results to differ from our forward-looking statements, are described in detail in our earnings release for the second quarter of fiscal 2025 and in our most recent periodic or other filings with the Securities and Exchange Commission. Our estimates, expectations or other forward-looking statements may change, and the company assumes no obligation to update forward-looking statements to reflect actual results, changes to assumptions or other events that may occur except as required by law.

可能影響我們業務的重要因素，包括可能導致實際結果與我們的前瞻性陳述不同的因素，在我們 2025 財年第二季度的收益發布以及我們最近的定期文件或其他文件中詳細描述證券交易委員會。我們的估計、預期或其他前瞻性陳述可能會發生變化，本公司不承擔更新前瞻性陳述以反映實際結果、假設變化或可能發生的其他事件的義務，除非法律要求。

It is now my pleasure to turn the call over to Allegro's President and CEO, Vineet Nargolwala. Vineet?

現在我很高興將電話轉給 Allegro 總裁兼執行長 Vineet Nargolwala。維尼特？

Thank you, Jalene, and good morning, and thank you for joining our second quarter fiscal year 2025 conference call. We delivered results consistent with our guidance despite a challenging macro environment. Q2 sales were $187 million, with sequential growth in automotive and industrial and other end markets. Non-GAAP EPS was $0.08 at the high end of our outlook. We are laser focused on executing our new product road maps to bring innovative new solutions to our customers.

謝謝賈琳，早上好，謝謝您參加我們的 2025 財年第二季電話會議。儘管宏觀環境充滿挑戰，但我們的業績與我們的指導一致。第二季銷售額為 1.87 億美元，汽車、工業和其他終端市場連續成長。非 GAAP 每股收益為 0.08 美元，處於我們預期的上限。我們專注於執行我們的新產品路線圖，為我們的客戶帶來創新的解決方案。

In Q2, we announced two new XtremeSense TMR current sensors, which represent the first products launched since the company's acquisition of Crocus. These high-bandwidth high-resolution TMR sensors streamline high-power density designs and provide space and cost savings while improving energy efficiency. They're well suited for automotive powertrain, AI data center, electric vehicle charging infrastructure and solar applications. And this focus on innovation is paying off as our solutions continue to build momentum across our strategic focus areas with important design wins. In Q2, we had a large design win with a leading Japanese OEM for a PHEV inverter using our current sensor solutions.

在第二季度，我們發布了兩款新的 XtremeSense TMR 電流感測器，這是該公司收購 Crocus 以來推出的首批產品。這些高頻寬高解析度 TMR 感測器簡化了高功率密度設計，節省空間和成本，同時提高能源效率。它們非常適合汽車動力系統、人工智慧資料中心、電動車充電基礎設施和太陽能應用。隨著我們的解決方案繼續在我們的策略重點領域建立動力並取得重要的設計成果，這種對創新的關注正在得到回報。在第二季度，我們在使用我們目前感測器解決方案的 PHEV 逆變器方面贏得了一家領先的日本 OEM 的巨大設計勝利。

Our XtremeSense portfolio won a major project for clean energy smart metering application in North America. Our high-voltage isolated gate drivers secured a win with a Chinese equipment manufacturer to test lithium batteries used in xEV and solar applications. And finally, we secured another large design win using our TMR technology for blood glucose monitoring. This expands the medical business we obtained through the Crocus acquisition where we continue to gain traction. The diverse nature of our wins further highlights the resilience of our portfolio across vehicle architectures and between automotive and industrial markets.

我們的 XtremeSense 產品組合贏得了北美清潔能源智慧計量應用的重大項目。我們的高壓隔離式閘極驅動器贏得了一家中國設備製造商的青睞，測試了 xEV 和太陽能應用中使用的鋰電池。最後，我們利用 TMR 技術進行血糖監測，贏得了另一個重大設計勝利。這擴大了我們透過收購 Crocus 獲得的醫療業務，我們在該領域繼續獲得牽引力。我們的勝利的多樣性進一步凸顯了我們的產品組合在車輛架構以及汽車和工業市場之間的彈性。

I now want to discuss what we're seeing in our end markets, starting with automotive. Over the past two months, I've had the opportunity to meet several of our key customers in China, Japan, Europe and North America and really get a sense for how things are on the ground, both in terms of the state of the market and our engagement with customers. Overall, I'm really encouraged by the continued global demand for our highly differentiated magnetic sensing and power semiconductor solutions across vehicle architectures and the significant progress made in rebalancing inventory in the channel. Chinese OEMs are heading full stride with mid-20% growth in xEV production and a slew of new products and models at every price point. They're expanding their production outside China with announcements of new plants in Europe, South America and Southeast Asia.

我現在想討論一下我們在終端市場中看到的情況，從汽車產業開始。在過去的兩個月裡，我有機會會見了我們在中國、日本、歐洲和北美的幾位主要客戶，並真​​正了解了當地的情況，包括市場狀況以及我們與客戶的互動。總體而言，全球對我們跨車輛架構的高度差異化磁感和功率半導體解決方案的持續需求以及在渠道庫存再平衡方面取得的重大進展讓我深受鼓舞。中國 OEM 廠商正大步前進，xEV 產量增加 20%，並且在各個價位推出大量新產品和車型。他們正在將生產擴大到中國以外的地區，並宣佈在歐洲、南美洲和東南亞設立新工廠。

Chinese xEVs are now 45% of total domestic production and expected to exceed 75% of domestic production by 2030. We recognize this momentum early on and responded by proactively moving more resources to this region and localizing production in China with our partners. I'm pleased to report that our first parts from a newly formed China supply chain will launch before the end of the year. I remain encouraged by the deep engagement of our teams with the China partners, including continued design win progress with customers like BYD and Neo as we collaborate on future solutions. With the inventory digestions largely behind us, we are seeing our China shipments return to normal ordering patterns, supporting a strong increase in second quarter sales.

目前，中國 xEV 產量佔國內總產量的 45%，預計到 2030 年將超過國內產量的 75%。我們很早就認識到了這一勢頭，並透過積極地將更多資源轉移到該地區並與我們的合作夥伴在中國進行本地化生產來回應。我很高興地報告，我們新成立的中國供應鏈的第一批零件將於今年年底前推出。我仍然對我們的團隊與中國合作夥伴的深入合作感到鼓舞，包括在我們合作開發未來解決方案時，與比亞迪和 Neo 等客戶的設計不斷取得進展。隨著庫存消化基本結束，我們看到我們的中國出貨量恢復正常訂購模式，支持第二季銷售額的強勁成長。

In Europe and North America, we're seeing continued progress from a design and activity standpoint and recognize that OEMs are still trying to get their investments and cost structures aligned to market needs. While we have made progress in inventory digestion, we expect continued near-term choppiness in order patterns from North America and European customers. Despite these near-term challenges, we are highly encouraged that auto OEMs remain committed to an electrified future and the adoption of more autonomous features. We are confident in our customers' ability to navigate these challenges, and we are well positioned to support them with world-leading magnetic sensing and power semiconductor solutions. Our customers in Japan and the rest of Asia continue to make steady progress in expanding their hybrid and battery electric solutions.

在歐洲和北美，我們從設計和活動的角度看到了持續的進步，並認識到原始設備製造商仍在努力使其投資和成本結構符合市場需求。儘管我們在庫存消化方面取得了進展，但我們預計北美和歐洲客戶的訂單模式將在近期持續波動。儘管存在這些近期挑戰，但我們對汽車原始設備製造商仍然致力於電氣化未來和採用更多自主功能感到非常鼓舞。我們對客戶應對這些挑戰的能力充滿信心，並且我們有能力透過世界領先的磁感和功率半導體解決方案為他們提供支援。我們在日本和亞洲其他地區的客戶在擴展其混合動力和電池電動解決方案方面繼續取得穩步進展。

In our industrial and other end market, we are seeing signs of increased activity after a prolonged inventory digestion period. We still expect demand to recover at some point in calendar year 2025, and we are encouraged by the signals we're seeing from our customers. Our third quarter sales outlook comprehends continued progress towards vehicle electrification. Ongoing inventory rebalancing is reflected in the latest third-party estimates and typical December quarter seasonality. While the macro continues to be uncertain, we remain focused on executing our strategies, accelerating our new product introductions and serving our customers.

在我們的工業和其他終端市場，我們看到經過長時間的庫存消化期後活動增加的跡象。我們仍然預計需求將在 2025 年的某個時候恢復，並且我們對客戶發出的信號感到鼓舞。我們的第三季銷售前景涵蓋了汽車電氣化的持續進展。最新的第三方估計和典型的 12 月季度季節性反映了持續的庫存重新平衡。儘管宏觀形勢仍然存在不確定性，但我們仍然專注於執行我們的策略，加快新產品的推出並為我們的客戶提供服務。

We continue to invest for growth with the intent to extend our market leadership and deliver on our commitments to our teams, our customers and our shareholders. We're encouraged by the progress made and believe the business is poised for acceleration. I want to thank our teams around the world for their continued hard work and dedication in focusing on what we can control, executing at the highest level and serving our customers.

我們繼續投資促進成長，旨在擴大我們的市場領導地位，並兌現我們對團隊、客戶和股東的承諾。我們對所取得的進展感到鼓舞，並相信業務將加速發展。我要感謝我們世界各地的團隊持續的辛勤工作和奉獻精神，專注於我們可以控制的事情，以最高水平執行並為我們的客戶提供服務。

I'll now turn the call over to Derek to review the Q2 financial results and provide our outlook for the third quarter. Derek?

我現在將電話轉給德里克，以審查第二季度的財務業績並提供我們對第三季的展望。德里克？

Thank you, Vineet. Good morning, everyone. Starting with a summary of our Q2 financial results. Sales were $187 million, gross margin was 48.8%, operating margin was 11.7% and adjusted EBITDA was 17.2% of sales. As a result, earnings were $0.08 per share at the high end of our outlook range.

謝謝你，維尼特。大家早安。首先總結我們第二季的財務表現。銷售額為 1.87 億美元，毛利率為 48.8%，營業利潤率為 11.7%，調整後 EBITDA 為銷售額的 17.2%。因此，每股收益為 0.08 美元，處於我們展望範圍的上限。

Total Q2 sales increased by 12% sequentially but declined by 32% compared to Q2 of fiscal '24. Sales to our automotive customers were $142 million an increase of 8% sequentially and a 28% year-over-year decline. Auto sales were 76% of Q2 sales and e-mobility sales were $71 million, an increase of 14% sequentially. Industrial and other sales were $45 million, increasing 27% sequentially due to increases in consumer and broad-based industrial markets. Industrial and other sales declined 42% year-over-year.

第二季總銷售額較上季成長 12%，但與 2024 財年第二季相比下降 32%。汽車客戶的銷售額為 1.42 億美元，季增 8%，年減 28%。汽車銷售額佔第二季銷售額的 76%，電動車銷售額為 7,100 萬美元，季增 14%。由於消費者和廣泛的工業市場的成長，工業和其他銷售額為 4500 萬美元，環比增長 27%。工業和其他銷售額較去年同期下降 42%。

Sales through our distribution channel were $96 million and represented 51% of Q2 sales. From a product perspective, magnetic sensor sales were $129 million, increasing 12% sequentially and representing 69% of Q2 sales. Sales of our power products were $58 million increasing 13% sequentially. Sales by geography were again well balanced with 26% of sales in China, 21% of sales in the rest of Asia, 20% in Japan, 18% in the Americas and 15% in Europe. Now turning to Q2 profitability.

透過我們的分銷管道的銷售額為 9,600 萬美元，佔第二季銷售額的 51%。從產品角度來看，磁性感測器銷售額為1.29億美元，季增12%，佔第二季銷售額的69%。我們的電源產品銷售額為 5,800 萬美元，比上一季成長 13%。按地區劃分的銷售額再次保持平衡，中國佔銷售額的 26%，亞洲其他地區佔銷售額的 21%，日本佔 20%，美洲佔 18%，歐洲佔 15%。現在轉向第二季的獲利能力。

Gross margin was 48.8% and operating expenses were $69 million down 3% sequentially and 7% compared to Q2 of fiscal '24. Operating margin was 11.7% of sales, nearly doubling from 6% in Q1, but down from 31% a year ago. The effective tax rate for the quarter was 4% and our full year effective tax rate is now projected to be 6%, lower than our previous outlook due to the favorable impact of a relatively fixed R&D credit on lower taxable income. The second quarter diluted share count was 190 million shares and net income was $15 million or $0.08 per diluted share, up from $0.03 in Q1. Moving to the balance sheet and cash flow.

毛利率為 48.8%，營運費用為 6,900 萬美元，比上一季下降 3%，與 2024 財年第二季相比下降 7%。營業利潤率佔銷售額的 11.7%，比第一季的 6% 幾乎翻了一番，但低於一年前的 31%。本季的有效稅率為 4%，目前預計全年有效稅率為 6%，低於我們先前的預期，因為相對固定的研發抵免對較低的應稅收入產生了有利影響。第二季稀釋後股票數量為 1.9 億股，淨利為 1,500 萬美元，即稀釋後每股收益 0.08 美元，高於第一季的 0.03 美元。轉向資產負債表和現金流量。

We ended Q2 with cash of approximately $200 million and the term loan balance was $400 million at the end of Q2. Cash flow from operations was $16 million, CapEx was $10 million and free cash flow was $6 million. From a working capital perspective, DSO was 37 days compared to 35 in Q1, and inventory days were 158 compared to 174 days in Q1. Before I discuss our Q3 outlook, for modeling purposes, I'd like to take a few minutes to highlight key details related to our share repurchase from Sanken Electric this past July. Allegro repurchased 39 million shares from Sanken which reduced Sanken's ownership in Allegro from 51% to 33%.

第二季末，我們擁有約 2 億美元的現金，第二季末的定期貸款餘額為 4 億美元。營運現金流為 1,600 萬美元，資本支出為 1,000 萬美元，自由現金流為 600 萬美元。從營運資金角度來看，DSO 為 37 天，而第一季為 35 天；庫存天數為 158 天，而第一季為 174 天。在討論我們的第三季前景之前，出於建模目的，我想花幾分鐘時間強調與我們今年 7 月從 Sanken Electric 回購股票相關的關鍵細節。Allegro 從 Sanken 回購了 3,900 萬股股票，這將 Sanken 在 Allegro 的持股比例從 51% 降至 33%。

To fund the transaction, Allegro issued 29 million shares in an equity offering and purchased and retired a net 10 million shares with an incremental $200 million term loan and cash on hand. As a result, Allegro's outstanding share count declined from 194 million shares to 184 million shares. These transactions also increased the laterals public float by 30%. In addition, Sanken reimbursed Allegro all transaction fees and expenses and paid Allegro $35 million transaction facilitation fee. As a result of a stock price decline between the fixed repurchase price and the closing of these transactions, Allegro as required under GAAP to record a forward repurchase fair value adjustment.

為了為本交易提供資金，Allegro 透過股權發行發行了 2,900 萬股股票，並透過增量 2 億美元的定期貸款和手頭現金購買並註銷了淨 1,000 萬股股票。結果，Allegro 的流通股數量從 1.94 億股減少至 1.84 億股。這些交易也使橫向公眾持股增加了 30%。此外，Sanken 還償還了 Allegro 所有交易費用和開支，並向 Allegro 支付了 3,500 萬美元的交易便利費。由於固定回購價格與這些交易結束之間的股價下跌，Allegro 根據 GAAP 的要求記錄了遠期回購公允價值調整。

This resulted in a $35 million noncash GAAP loss in Q2. Finally, in conjunction with the $200 million incremental term loan, we took the opportunity to reprice the entire term loan from SOFR plus 275 to SOFR plus 225 basis points.

這導致第二季非現金 GAAP 虧損 3,500 萬美元。最後，結合 2 億美元增量定期貸款，我們藉此機會將整個定期貸款從 SOFR 加 275 重新定價為 SOFR 加 225 個基點。

I'll now turn to our Q3 2025 outlook. We expect third quarter sales to be in the range of $170 million to $180 million. As Vineet mentioned, this range contemplates continued progress towards vehicle electrification, ongoing customer inventory rebalancing in December quarter seasonality. We also project the following on a non-GAAP basis. We expect gross margin to be between 49% and 51% and this morning, we made another $25 million voluntary debt payment on our term loan, bringing the balance down to $375 million.

現在我將談談我們對 2025 年第三季的展望。我們預計第三季銷售額將在 1.7 億美元至 1.8 億美元之間。正如 Vineet 所提到的，這個範圍考慮了車輛電氣化的持續進展，以及 12 月季度季節性客戶庫存的持續重新平衡。我們也根據非公認會計準則 (Non-GAAP) 預測了以下內容。我們預計毛利率將在 49% 至 51% 之間，今天早上，我們自願償還了 2,500 萬美元的定期貸款債務，使餘額降至 3.75 億美元。

As a result, we now expect third quarter non-GAAP interest expense to be approximately $6 million. We expect our tax rate to be approximately 6% and our weighted average diluted share count to be approximately 185 million shares. As a result, we expect non-GAAP EPS to be between $0.04 and $0.08 per share.

因此，我們現在預計第三季非 GAAP 利息支出約為 600 萬美元。我們預計稅率約為 6%，加權平均稀釋後股份數量約為 1.85 億股。因此，我們預計非 GAAP 每股盈餘將在 0.04 美元至 0.08 美元之間。

Now, I'll turn the call back to Jalene for questions. Jalene?

現在，我將把電話轉回賈琳詢問問題。賈琳？

This concludes management's prepared remarks. Before we open the call for your questions, I'd like to share our third fiscal quarter conference line up with you. We are attending UBS' Global Technology Conference on December 3 at the Phoenician Hotel in Scottsdale, Wells Fargo's Eighth Annual TMT Summit at the Terranea Resort in Rancho Palos Verdes, December 4 and Barclays 22nd Annual Global Technology Conference at the Palace Hotel in San Francisco on December 12. I would also like to direct due to an updated investor presentation located in the Events and Presentations section of the Investor section of our website. We will now open the call for your questions.

管理階層準備好的發言到此結束。在我們開始詢問您的問題之前，我想先與您分享我們第三財季的會議安排。我們將參加12 月3 日在斯科茨代爾腓尼基酒店舉行的瑞銀全球技術會議、12 月4 日在帕洛斯維迪斯牧場Terranea 度假村舉行的富國銀行第八屆年度TMT 峰會以及12月12 日在舊金山皇宮酒店舉行的巴克萊第22 屆年度全球技術會議。我還想指導，因為我們網站投資者部分的活動和演示部分有更新的投資者演示。我們現在將開始電話詢問您的問題。

Corey, please review Q&A instructions.

科里，請查看問答說明。

(Operator Instructions) Blayne Curtis, Jefferies.

（操作員說明）布萊恩·柯蒂斯，杰弗里斯。

Vineet, I just want to ask, obviously, you had a very sharp correction in June. I think you felt comfortable at the time that, that was such a big correction that you could kind of grow off of that. And you did in September, but then the sequential down again. So I'm just kind of curious, was that you're going to be back to kind of those June levels, which you thought were way below where they should be. So I'm just kind of curious what changed.

Vineet，我只是想問，顯然，你在 6 月經歷了一次非常劇烈的調整。我想你當時感覺很舒服，這是一個如此大的修正，你可以從中成長。九月就做到了，但隨後又出現了下降。所以我只是有點好奇，你是否會回到六月的水平，你認為這個水平遠低於應有的水平。所以我只是好奇發生了什麼變化。

And can you walk us through also for December? I'm assuming a big part of that correction is auto, but industrial was up strongly. Is that back down in December as well?

能為我們介紹一下 12 月的情況嗎？我假設調整的很大一部分是汽車產業，但工業產業強勁上漲。12月份也會回落嗎？

Blayne, this is Vineet. So thanks for the question. So our -- at midpoint, our guide for the December quarter will be higher than where we were in June. And when we looked at our trends back in that time frame, really the biggest challenge was the inventory digestion. And as I said in my prepared remarks, we made some really good progress in bringing that down into normal levels.

布萊恩，這是維尼特。謝謝你的提問。因此，在中點，我們對 12 月季度的指導將高於 6 月份的水準。當我們回顧那個時期的趨勢時，真正最大的挑戰是庫存消化。正如我在準備好的發言中所說，我們在將其降至正常水平方面取得了一些非常好的進展。

I will tell you that when I look at the automotive sector, we're seeing some great momentum in China. Our shipments or sales in China in the second quarter were up 54%, okay? And the inventory rebalancing is all behind us in China, and we see some great momentum there. Where we see still some lingering effects of the inventory digestion is North America and Europe which has been compounded by further reduction in production totals by the North American OEMs and the European OEMs. So I think that's the new piece of data that we're layering in as we think about the next quarter.

我會告訴你，當我觀察汽車產業時，我們看到了中國的一些巨大勢頭。第二季我們在中國的出貨量或銷售額成長了 54%，好嗎？中國的庫存再平衡已經全部結束，我們看到了一些巨大的勢頭。我們看到北美和歐洲的庫存消化仍然存在一些揮之不去的影響，而北美整車廠和歐洲整車廠的產量進一步減少，加劇了這種影響。所以我認為這是我們在考慮下個季度時正在分層的新數據。

Thanks. And then I just want to ask you, you mentioned a gate driver win with a China OEM.

謝謝。然後我想問你，你提到了閘極驅動器與中國 OEM 的合作。

That's right.

這是正確的。

Can you just expand on that? Obviously, it's a new product for you. And there's a big discussion about Chinese silicon carbide and is your gate driver paired with Chinese silicon carbide. I'm just trying to understand, obviously, there's a bundle situation for some of the vendors. You're kind of breaking that bundle with a better performing shapes. Just kind of curious what drove that win and expand on maybe the gate driver pipeline.

能擴展一下嗎？顯然，這對您來說是一個新產品。關於中國碳化矽有一個很大的討論，您的閘極驅動器是否與中國碳化矽配對。顯然，我只是想了解一些供應商有捆綁銷售的情況。你用性能更好的形狀打破了這個束縛。只是有點好奇是什麼推動了這場勝利並擴大了柵極驅動器管道。

So the win was actually on our GaN isolated gate driver. And you're exactly right. We bring a unique value proposition with our isolated gate drivers where we combine essentially 3 functions into one chip. There is almost 30% to 35% space savings and overall system cost savings. And for OEMs who are really astute and are looking at ways to reduce overall system cost while also regaining flexibility and sourcing power as they look at different GaN FETs or silicon carbide FETs our gate driver is a great option.

因此，勝利實際上在於我們的 GaN 隔離閘極驅動器。你是完全正確的。我們透過隔離式閘極驅動器帶來了獨特的價值主張，將 3 個功能本質上結合到一個晶片中。節省了近 30% 到 35% 的空間和整體系統成本。對於非常精明的 OEM 而言，他們在尋找不同的 GaN FET 或碳化矽 FET 時，正在尋找降低整體系統成本的方法，同時重新獲得靈活性和採購電源，我們的閘極驅動器是一個不錯的選擇。

And so we're getting some really good traction with our GaN drivers that have been released into the market. That win was related to that. And we'll be shortly sampling our silicon carbide drivers as well, which are -- we've got a long amount of customers waiting to sample that. Thank you for the question.

因此，我們已經投放市場的 GaN 驅動器獲得了一些非常好的吸引力。那場勝利與此有關。我們很快也會對我們的碳化矽驅動器進行採樣，我們已經有很多客戶在等待採樣。謝謝你的提問。

Thomas O'Malley, Barclays.

托馬斯·奧馬利，巴克萊銀行。

Mine is a little bit broader. So if I look at just the general auto space from kind of calendar year '21 on just before the pandemic and to today, like you've grown pretty much lock, stop and bear with the auto group. And if I look at 2024, obviously, not everyone has reported yet, but it looks like you're seeing a much sharper correction than your peers this year, where like just based on your guidance, you're kind of down 20-ish percent on the year versus the peer stuff that's just down modestly. So could you maybe just describe, one, do you think that you are just earlier to the correction where you're taking this cut before others and have a little bit more of a lean in supply chain given your product type and would see you recover more quickly? Or maybe any sort of statistics around inventory work down or where the channels today or where direct customers are today, that would explain that difference? I guess that's the first question.

我的有點寬。因此，如果我只看一下從 21 日曆年大流行之前到今天的一般汽車領域，就像你已經對汽車集團有了很大的鎖定、停下來並忍受一樣。如果我看看 2024 年，顯然，並不是每個人都已經報告了，但看起來今年你會看到比同行更劇烈的調整，就像僅根據你的指導，你會下降 20 左右與同行相比，今年的百分比略有下降。那麼，您是否可以簡單描述一下，一，您是否認為您只是更早地進行調整，您在其他人之前就進行了這次削減，並且考慮到您的產品類型，在供應鏈上有更多的精益，並且會看到您恢復過來更快？或者也許任何有關庫存下降或今天的管道或直接客戶現在在哪裡的統計數據都可以解釋這種差異？我想這是第一個問題。

Yeah, Tom, thank you for the question. it's hard for me to comment on how others are navigating through what we consider to be pretty challenging inventory situations in the automotive sector. I would tell you that we didn't really have an extreme use of long-term strategic agreements to lock up customers on volumes that perhaps didn't make sense based on new realities. And so we were also working very closely with our advanced visibility into our backlog and our order patterns with customers to make sure that we weren't putting excess inventory into the channels. So I would say that we took our medicine early and we believe that we have done some really good work in helping our customers clear out that inventory from the channel and from their positions.

是的，湯姆，謝謝你的提問。我很難評論其他人如何應對我們認為汽車產業極具挑戰性的庫存狀況。我想告訴你，我們並沒有真正極端地利用長期戰略協議來鎖定客戶數量，而根據新的現實情況，這可能沒有意義。因此，我們也與客戶密切合作，利用對積壓訂單和訂單模式的高級視覺性，確保我們不會將多餘的庫存放入管道。所以我想說，我們很早就吃藥了，我們相信我們在幫助客戶清除渠道和倉位上的庫存方面做了一些非常好的工作。

And so I think it remains to be seen how we get out on the other side, but we are confident that as these near-term challenges around inventory digestion abate and our OEMs -- our OEM customers get their production plans in place, aligned to what the market needs, we're going to be coming out of it and poised for acceleration.

因此，我認為我們如何擺脫困境還有待觀察，但我們有信心，隨著庫存消化方面的近期挑戰減輕，我們的 OEM 客戶將製定生產計劃，與市場需要什麼，我們就會走出去並準備加速。

Hi, Tom, this is Derek. I'd just add that if you remember about a year -- exactly a year ago in the November call last year, we started talking about opening up our cancellation window, particularly for things that were sort of late, we were late on and for long lead time items. So we did that, and we did that pretty proactively. And this happens every couple of years. Even though things are NCNR, right?

嗨，湯姆，這是德瑞克。我想補充一點，如果你還記得大約一年前的事情——正好一年前，在去年11 月的電話會議上，我們開始討論開放取消窗口，特別是對於那些有點晚了的事情，我們遲到了，而且交貨時間長的物品。所以我們就這麼做了，而且我們非常主動地這麼做了。這種情況每隔幾年就會發生一次。即使事情是 NCNR，對嗎？

We're not going to hold our customers those things. And to answer the second part of your question, backlog is relatively -- kind of been consistent the last couple of quarters. And inventory has come down, both on the auto side of things and in the distribution channel. And as Vineet mentioned, we saw that very clearly in China. China was back up 54% in Q2 and that all goes through distribution, all the auto, all the industrial in China.

我們不會向客戶保留這些東西。為了回答你問題的第二部分，積壓工作相對而言——在過去幾季中保持一致。汽車方面和分銷管道的庫存都下降了。正如維尼特所提到的，我們在中國清楚地看到了這一點。中國第二季成長了 54%，這一切都透過分銷、所有汽車、中國所有工業實現。

So there's still work to be done in other regions. I'd say Japan is relatively flat, which is good. The rest of Asia is in pretty good shape. North America and Europe still have work to be done, quite frankly.

因此，其他地區仍有工作要做。我想說日本相對平坦，這很好。亞洲其他地區的情況相當不錯。坦白說，北美和歐洲仍有工作要做。

Helpful. And can you just give us the metric on weeks of inventory at Disti like where is that normally? Where does that kind of peak and where is it now? And just kind of in line with that question, if things are more normalized, do you expect that kind of looking into the March and June quarter? Obviously, you're describing some seasonality in December that you would see some accelerated growth off of the bottom there.

有幫助。您能否向我們提供 Disti 的庫存週數指標，就像通常在哪裡？那種高峰在哪裡，現在又在哪裡？與這個問題類似，如果事情變得更加正常化，您是否期望對 3 月和 6 月季度進行這樣的調查？顯然，您描述的是 12 月的一些季節性因素，您會看到那裡的底部加速成長。

Yeah, Tom. So I'm not going to provide the exact weeks on hand what I have provided that typically in the aggregate, we'd like to be within 8 to 12 weeks. At one point, a couple of years ago, we were well below that. We don't want to be there either. Some regions are getting much closer to that right now.

是的，湯姆。因此，我不會提供我所提供的具體週數，通常總的來說，我們希望在 8 到 12 週內完成。幾年前，我們一度遠低於這個水準。我們也不想在那裡。有些地區現在已經非常接近這個目標了。

Other regions like North America and Europe are still above that. Japan is historically above that kind of in the 14, 15 weeks, and it stays there. China is moving much closer to that. We're actually seeing small pockets of behavior where we're seeing orders within lead time and maybe people dipping too deep in inventory. So those kind of things are good indication that we might start to see some acceleration in 2025.

北美和歐洲等其他地區仍高於此。從歷史上看，日本在第 14 週、第 15 週的表現就高於這一水平，並且總是保持在那裡。中國正在離這個目標越來越近。我們實際上看到了一些行為，我們看到訂單在交貨時間內，也許人們庫存過多。因此，這些事情很好地表明我們可能會在 2025 年開始看到一些加速。

Josh Buchalter, TD Cowen.

喬許·布查爾特，TD·考恩。

This is Lanny on for Josh. So kind of switching gears a little bit to industrial. I know it's been a bit of a slog to get through the inventory correction. But you posted a pretty healthy sequential growth in the quarter, and you mentioned broad-based industrial kind of recovery. Where are you seeing some of the green shoots?

這是蘭尼為喬許代言的。所以有點轉向工業化。我知道完成庫存調整有點困難。但您在本季度公佈了相當健康的連續成長，並且提到了廣泛基礎的工業復甦。你在哪裡看到一些綠芽？

What are the puts and takes? And looking forward into the next one to two quarters, where do you see the trends lining up? And I have a follow-up.

賣出和賣出是什麼？展望未來一到兩個季度，您認為趨勢在哪裡？我有一個後續行動。

Sure. Lanny, this is Vineet. I'll take the question. So you'll recall that last quarter, we combined our Industrial and other segments. So this is sort of more broad-based commentary.

當然。蘭尼，這是維尼特。我來回答這個問題。所以你會記得上個季度，我們合併了工業和其他部門。所以這是一種基礎更廣泛的評論。

We've highlighted success in our medical business that's continuing to perform nicely for us. We're also seeing some consumer. We have very select consumer positions with some major OEMs. We're seeing some nice pick up there. We are hesitant to call it a full broad-based recovery in industrial and other.

我們強調了我們的醫療業務所取得的成功，該業務將繼續為我們帶來良好的表現。我們也看到一些消費者。我們在一些主要的原始設備製造商中擁有非常精選的消費者地位。我們在那裡看到了一些不錯的收穫。我們對於是否稱其為工業和其他領域的全面全面復甦猶豫不決。

Obviously, there's some work to do. We think recovery is most likely in some in 2025. But the initial signs we're seeing in terms of pickup in auto patterns, certain segments showing more strength than others, gives us some encouraging signs, and we're hopeful that the Industrial and Other segment will recover after what has been a really prolonged inventory (inaudible)

顯然，還有一些工作要做。我們認為一些國家最有可能在 2025 年復甦。但我們在汽車模式回升方面看到的初步跡象，某些細分市場比其他細分市場表現出更強的實力，給我們帶來了一些令人鼓舞的跡象，我們希望工業和其他細分市場在經歷了相當長的一段時間後能夠復甦存貨（聽不清楚）

Great. And then I guess one for Derek. Looking into the next quarter, gross margin expected to expand just slightly at the midpoint. But revenue down -- call it, 6.5% quarter-over-quarter. Can you help give a bit of color on the puts and takes there, parse out expectations in terms of like sales channels, segment mix, et cetera?

偉大的。然後我猜是德瑞克的。展望下個季度，毛利率預計將在中點小幅擴張。但收入環比下降了 6.5%。您能否幫助對看跌期權和看跌期權進行一些說明，解析銷售管道、細分市場組合等方面的期望？

Yes, Lanny. So in the Q2, our gross margin was 48.8%, and we've had a sort of, I'll call it, a onetime quality resolution of about 80 basis points plus some geographical mix, right? There was a heavy component of China in there. As we go into Q3, I'm pretty confident in that 49% to 51% range as the geographical mix starts to normalize again. We're getting better utilization in our factories and then that onetime cost goes away. So that's really the bridge from Q2 to Q3.

是的，蘭尼。所以在第二季度，我們的毛利率是 48.8%，我們有一種，我稱之為，大約 80 個基點的一次性品質解析度加上一些地理組合，對嗎？那裡有很重的中國成分。當我們進入第三季時，隨著地理組合再次開始正常化，我對 49% 到 51% 的範圍非常有信心。我們的工廠得到了更好的利用率，然後一次性成本就消失了。所以這其實是從 Q2 到 Q3 的橋樑。

Chris Caso, Wolfe Research.

克里斯‧卡索，沃爾夫研究中心。

I guess maybe just a follow-up on that last comment you made where the mix normalizes in Q4. Maybe you could give some sense of what you expect for the product mix as you go into Q4 with maybe the buckets of auto, industrial and what's going on in China there because, obviously, a lot changed? There was a lot of China in Q3, a lot of growth in Industrial in Q3 and how that kind of plays out as you go into Q4?

我想也許只是您最後發表的評論的後續行動，其中混合在第四季度正常化。也許您可以在進入第四季度時了解您對產品組合的期望，可能包括汽車、工業以及中國正在發生的事情，因為顯然發生了很多變化？第三季中國有許多成長，第三季工業成長很大，進入第四季時情況如何？

Yeah, Chris, we're not going to guide by market, but we expect the sales -- midpoint, sales are declining 6%, right? That's going to be pretty consistent between the two markets. So when I talk about mix, it's largely geographical mix and product mix. Product mix can have the biggest impact on that. So to the extent that certain parts of our current sensor business and other things have a higher component of those sales and even geographically can impact that.

是的，克里斯，我們不會以市場為導向，但我們預計銷售額——中點，銷售額將下降 6%，對嗎？這兩個市場之間的情況將非常一致。因此，當我談論組合時，主要是地理組合和產品組合。產品組合對此影響最大。因此，我們目前感測器業務的某些部分和其他業務在這些銷售額中所佔的比例較高，甚至在地理位置上也會產生影響。

Okay. Understood. I wonder if you could also follow up on some of the comments you made about the China supply chain, which you're making some changes there. I mean, is that you're going to move some production into China domestic to be able to address some of the local OEMs there? Maybe give some color on what's the strategy is there and what's the time line of that?

好的。明白了。我想知道你是否也可以跟進你對中國供應鏈的一些評論，你正在那裡做出一些改變。我的意思是，你們是否打算將一些生產轉移到中國國內，以便能夠滿足當地一些原始設備製造商的需求？也許可以說明一下具體的策略是什麼以及時間表是什麼？

Sure, Chris. This is Vineet. Happy to take the question. So about almost over a year ago, we started talking about our plans to localize manufacturing in China as we saw the significant boom in production, especially related to xEVs, both plug-in hybrids as well as battery electric vehicles or new energy vehicles, as they call it in China. And we started the process of qualifying a wafer supplier as well as OSATs.

當然，克里斯。這是維尼特。很高興接受這個問題。因此，大約一年多前，我們開始談論在中國進行本地化製造的計劃，因為我們看到生產的顯著繁榮，特別是與xEV 相關的產品，包括插電式混合動力汽車以及純電動車或新能源汽車，他們在中國稱之為。我們開始了晶圓供應商和 OSAT 的資格認證流程。

And the OSATs are obviously on a shorter time frame. The wafer qualification will take a little bit longer. But we are starting to see the first parts from our OSAT partner roll off by the end of this year. And so really excited about that. We are ahead of our schedule.

OSAT 的時間顯然更短。晶圓鑑定將需要更長的時間。但我們開始看到我們的 OSAT 合作夥伴的第一批零件將在今年年底推出。對此感到非常興奮。我們比計劃提早了。

So pleased about that progress by the team. And we will endeavor to move a sizable portion of our China revenues into China. And that will really be paced by the time taken to qualify different parts. As you will remember, all of our parts are automotive grade. So it does take time.

對團隊的進展感到非常高興。我們將努力將中國收入的很大一部分轉移到中國。這實際上將取決於驗證不同部件所需的時間。您會記得，我們​​所有的零件都是汽車級的。所以這確實需要時間。

But really, our focus is to make sure that we are serving our China customers the best way that they want to be served and increasingly, that's local manufacturing.

但實際上，我們的重點是確保我們以中國客戶希望的最佳方式為他們提供服務，並且越來越多地採用本地製造。

And just a follow-on to my follow-on. Are there any margin implications with that with moving that production into domestic China?

這只是我的後續行動的後續行動。將生產轉移到中國國內會對利潤率產生影響嗎？

Chris, over time, we do expect that to be positive to gross margins, yes.

克里斯，隨著時間的推移，我們確實預計這會對毛利率產生積極影響，是的。

Grant Joslin, UBS.

格蘭特喬斯林，瑞銀集團。

It's Tim Arcuri. So can you talk a little bit about what's going on with magnetic sensors versus PMICs? Is the outlook better in one market versus the other?

我是提姆·阿庫裡。那麼您能談談磁傳感器與 PMIC 的比較嗎？一個市場的前景比另一個市場更好嗎？

Tim, not particularly. I think we're seeing broad-based momentum whether it comes to our design wins or to our orders. Generally, we do a lot of solutions selling as well, which kind of tends to make them sort of move together. Having said that, we're obviously the leader in magnetic sensing. We tend to win more than our fair share, whereas in the power portfolio, we have leadership in selected applications that we focus on.

蒂姆，不是特別。我認為，無論是我們的設計勝利還是我們的訂單，我們都看到了廣泛的動力。一般來說，我們也會銷售很多解決方案，這往往會讓它們一起移動。話雖如此，我們顯然是磁感學領域的領導者。我們往往會贏得超出應得份額的份額，而在電源組合中，我們在我們關注的選定應用中處於領先地位。

So hopefully, that gives you a sense for how these things move together.

希望這能讓您了解這些事物如何一起運作。

And Tim Q2, they were kind of up similarly. Magnetic sensing was up 12%. Power was up 13%. And typically, there's a bit more power in industrial and other and a bit more sensing in automotive. So you can kind of correlate those two a little bit.

提姆 Q2 的表現也類似。磁感增長了 12%。電力增加了 13%。通常，工業和其他領域的功率更大，汽車的感測能力更強。所以你可以將這兩者稍微關聯起來。

Perfect. Yes. Got it. So Derek, I think back in May, you were hopeful to get to kind of mid-50s gross margin by March. And obviously, things are worse than you thought then.

完美的。是的。知道了。所以德里克，我想早在 5 月份，你就希望到 3 月份能夠達到 50 多歲的毛利率。顯然，事情比你想像的還要糟糕。

But can you sort of talk about some of the puts and takes as you look into next year? And maybe what the sort of incremental drop through we should think about is on the gross margin as you kind of come off the bottom?

但您能談談您展望明年的一些看跌期權嗎？也許當你走出谷底時，我們應該考慮的是毛利率的增量下降是什麼？

Yeah. So the Q2 drop-through when we gave the guidance was expected to be 65%, and that's kind of where it's been historically the last three years, Tim, since we've been public essentially. I still expect that to hold pretty true, absent onetime charges like we had here in Q2 and actually going into Q3, as Lanny pointed out, we're having a decline of 6% in revenues and still having gross margins improved by 120 basis points at the midpoint of our guidance. When you take those onetime items out in a little bit of mix. I still believe in that 65%, we still see that as utilization so that's the good news.

是的。因此，當我們給出指導時，第二季度的下降率預計為 65%，蒂姆，這就是過去三年曆史上的情況，因為我們基本上已經公開了。我仍然預計這一點是正確的，沒有像我們在第二季度和實際上進入第三季度那樣的一次性費用，正如蘭尼指出的那樣，我們的收入下降了6%，但毛利率仍然提高了120 個基點在我們指導的中點。當你把那些曾經的物品稍微混合起來。我仍然相信 65%，我們仍然認為這是利用率，所以這是個好消息。

As we continue to have revenue -- if you put a revenue number in your model, we should get that 65% drop through. On top of that, we expect tailwinds from normalization of mix in industrial and by region, plus a lot of the new products that we've released as those start to get momentum in the market or are these isolated gate drivers, the TMR products, those inherently have higher gross margins at better ASPs.

隨著我們繼續有收入——如果你在模型中輸入收入數字，我們應該會得到 65% 的下降。最重要的是，我們預計工業和地區混合正常化將帶來推動力，加上我們發布的許多新產品，因為這些產品開始在市場上獲得動力，或者這些隔離閘極驅動器、TMR 產品、這些本質上具有更高的毛利率和更好的平均售價。

Vijay Rakesh, Mizuho.

維傑·拉克什，瑞穗。

Just two quick questions. On the Disti side, can you talk to where inventories are and where they should be versus normal levels, I guess?

只是兩個簡單的問題。在 Disti 方面，我想您能談談庫存現狀以及與正常水平相比應該在哪裡嗎？

Yes, Vijay, earlier I mentioned that normal levels are about 8 to 12 weeks, and that's in the aggregate regions like Japan typically carry a little bit more inventory, and they're not far off of that. It's been consistent in Japan for the last couple of quarters as we built that distribution channel away from Sanken 1.5 years ago. So that's in pretty good shape. China has come down pretty significantly, heading towards that 12 weeks.

是的，Vijay，之前我提到過正常水平約為 8 至 12 週，而日本等地區的庫存通常會多一點，而且與此相差不遠。過去幾個季度，日本的情況一直保持穩定，因為我們 1.5 年前就在 Sanken 之外建立了分銷管道。所以這是一個非常好的狀態。接近 12 週時，中國的下降幅度相當大。

Rest of Asia, I think, is getting close to that. There's some pockets like data centers that are just taking time with specific products that we've had an elongated distribution inventory for quite some time. As Vineet mentioned, in North America and Europe has still work to do over the next quarter or two.

我認為亞洲其他地區正在接近這一目標。有一些像資料中心這樣的地方只是需要時間來處理特定的產品，而我們已經有很長一段時間的分銷庫存了。正如 Vineet 所提到的，在北美和歐洲，未來一兩個季度仍有工作要做。

Got it. And then as you look out, let's say look out to next year. Just wondering how the competitive landscape looks. What do you think in terms of your share on the magnetic sensor side? And are you seeing any pricing pressure or do you expect pricing to be pretty stable into next year, if you can give some color around that?

知道了。然後當你展望未來時，我們可以說展望明年。只是想知道競爭格局如何。您認為您在磁性感測器方面的份額如何？您是否看到任何定價壓力，或者您預計明年的定價會相當穩定（如果您能對此提供一些說明）嗎？

Yeah. So Vijay, there was two questions in one, but I'll start with maybe the share piece. Look, we've talked about our momentum in design wins, our momentum and our engagement with customers. And all of that gives me a lot of confidence that we will not only maintain our share in magnetic sensing, but most likely extend it, okay? And that's really where our new product introduction focus is, really excited about the slew of new products we're bringing to the market.

是的。Vijay，有兩個問題合而為一，但我可能會從分享部分開始。看，我們已經討論了我們在設計獲勝方面的動力、我們的動力以及我們與客戶的互動。所有這些都給了我很大的信心，我們不僅會保持我們在磁感領域的份額，而且很可能會擴大它，好嗎？這確實是我們新產品推出的重點所在，我們對大量向市場推出的新產品感到非常興奮。

You'll hear more about it in the coming weeks and months. I highlighted some in my prepared remarks, we highlighted some in the last quarter. So there's a lot of momentum in our new product velocity. So excited about that. And I think that's going to help us build, maintain and extend share.

在接下來的幾週和幾個月裡，您會聽到更多相關資訊。我在準備好的發言中強調了一些，我們在上個季度強調了一些。因此，我們的新產品開發速度強勁。對此感到非常興奮。我認為這將幫助我們建立、維護和擴大份額。

From a pricing standpoint, I would say we're back into the stable environment. So what do I mean by that? In automotive, we are governed by our strategic design wins and the contracts associated with that. So typically, when we launch a part it starts off at a higher price. And then as volume ramps, we get productivity.

從定價的角度來看，我想說我們又回到了穩定的環境。那我這是什麼意思呢？在汽車領域，我們受到戰略設計勝利以及與之相關的合約的約束。因此，通常情況下，當我們推出一個零件時，它的起始價格會更高。然後隨著產量的增加，我們的生產力就會提高。

We share some of that with our customers, and that's very, very typical. And that's usually in the 2% range. And we've got back to that a couple of quarters ago. So no change there.

我們與客戶分享其中的一些內容，這是非常非常典型的。通常在 2% 的範圍內。幾個季度前我們已經回到這個主題了。所以那裡沒有變化。

Competitive-wise, I think pricing pressure, we talked about some perhaps trying to fill fabs, getting a little bit more desperate. I think that has become more normalized now. And certainly, people are seeing past that to look at, okay, what is the fit to function and really focusing on value. So I would say it's stable.

從競爭角度來看，我認為價格壓力，我們談到一些可能試圖填補晶圓廠，變得更加絕望。我認為現在這已經變得更加常態化。當然，人們已經超越了這一點，開始關注什麼是適合運作並真正關注價值的。所以我想說它是穩定的。

Mark Lipacis, Evercore.

馬克·利帕西斯，Evercore。

Great. Vineet, you said you had visited -- spent a lot of time visiting customers this past quarter. And I'm wondering if you look past your own distributors to your customers, and I guess particularly at the Tier 1s, do you have a sense that inventory is there for further downstream past the distributors are still above normal and going to normal levels? Or do you think they're at normal levels going to below normal levels at that part of the supply chain?

偉大的。Vineet，你說你在上個季度花了很多時間拜訪客戶。我想知道，如果您超越自己的分銷商，看看您的客戶，我想特別是在一級分銷商，您是否感覺到，分銷商之後下游的庫存仍然高於正常水平並恢復到正常水平？或者您認為供應鏈該部分的正常水平會低於正常水平？

Mark, thanks. That's a really insightful question. And I think there is a geographical split to this. I would say that in China and broad parts of Asia, we look -- as we look at inventory at distributors and beyond the distributors, we feel pretty good about where they are and where they're trending. In some parts, we're starting to see orders come in within lead time.

馬克，謝謝。這是一個非常有洞察力的問題。我認為這存在地域上的分歧。我想說的是，在中國和亞洲廣大地區，當我們查看分銷商和分銷商以外的庫存時，我們對他們的狀況和趨勢感到非常滿意。在某些地區，我們開始看到訂單在交貨時間內到達。

That indicates that maybe some customers are a little too skinny on inventory. We're trying to respond the best we can. As you will recall, we've built up some strategic dieback inventory that's allowing us to respond in a very agile way. We expect more of that to happen, by the way, as the quarter goes on and perhaps even into next quarter, we think a lot of customers have become too skinny on inventory. In Europe and North America, the inventory situation has been compounded recently with cuts in production rates, a little bit of repositioning in the portfolio by the OEMs, which is having some downstream impact on the contract manufacturers and tiers as to sort of figure out what parts do they need in order to go serve perhaps a realigned portfolio, that's causing a bit of churn, to be honest.

這表示有些客戶的庫存可能有點太少了。我們正在盡力做出最好的回應。您可能還記得，我們​​已經建立了一些策略性枯死庫存，使我們能夠以非常敏捷的方式做出反應。順便說一句，我們預計這種情況會發生更多，隨著本季度的繼續，甚至可能進入下個季度，我們認為許多客戶的庫存已經變得太少了。在歐洲和北美，庫存狀況最近因生產率下降、原始設備製造商對產品組合進行了一些重新定位而變得更加複雜，這對合約製造商和各層級產生了一些下游影響，以找出他們需要的部分才能服務於可能重新調整的投資組合，老實說，這導致了一些流失。

And so it's hard to look at that picture and say, are they -- there might be pockets where they have no inventory and there might be pockets where now based on realigned product plans, there might be a little excess inventory, right? So that's a little bit harder to read in full transparency, but we are working through that in close collaboration with the OEMs as well as the contract manufacturers and the peers.

因此，很難透過查看這張圖片來判斷，是不是——可能有些地方沒有庫存，而有些地方現在根據重新調整的產品計劃，可能有一點多餘的庫存，對吧？因此，完全透明地閱讀起來有點困難，但我們正在與原始設備製造商以及合約製造商和同行密切合作來解決這個問題。

All right. That's very helpful. For a follow-up, if I may. Just -- just moving to that, you discussed the die bank. You had a large decline in your own days of inventory on your balance sheet. And could you just remind us of the target that we're shooting here for here? And can you characterize that? Is that mostly die bank to the extent it's finished goods?

好的。這非常有幫助。如果可以的話，請進行後續跟進。就——就在剛才，您討論了模具庫。您的資產負債表上的庫存天數大幅下降。你能提醒我們一下我們在這裡拍攝的目標嗎？你能描述一下這一點嗎？就成品而言，這主要是模具庫嗎？

And what do you think happens to your own inventories over the next several quarters? And is the decline in aggregate affecting -- impacting your own effective lead times on an aggregate basis or how you're able to respond to your customers?

您認為未來幾季您自己的庫存會發生什麼變化？整體下降是否會影響您自己的整體有效交貨時間或您對客戶的回應方式？

Yeah, Mark, this is Derek. So our inventory dollars actually increased by about $1 million quarter over quarter. The days came down pretty significantly from 174 million to [159 million] as a function of the increase in revenue quarter over quarter. Obviously, revenue is declining at the midpoint of our guidance, 6% in the December quarter. We expect to increase our on-balance sheet inventories a little bit as we continue to purchase wafers as we get favorable pricing to continue to buy wafers and turn those into die bank, which we're confident we can use in the near future.

是的，馬克，這是德瑞克。因此，我們的庫存金額實際上比上一季增加了約 100 萬美元。隨著營收季增，天數從 1.74 億顯著減少到 [1.59 億]。顯然，收入在我們指導的中點下降，12 月季度下降了 6%。隨著我們繼續購買晶圓，我們預計會稍微增加資產負債表內的庫存，因為我們獲得優惠的價格來繼續購買晶圓並將其轉變為晶片庫，我們有信心在不久的將來可以使用它們。

So I expect inventory days to tick up a little bit this next quarter. And about half of our inventory is either wafer bank or die bank. And then the finished goods inventory, we carefully look at that to ensure that we have finished goods inventory that is standard parts or catalog type parts such that we can respond within the quarter because we're starting to see some within quarter orders, particularly for distributors. So that's kind of how we look at our inventory profile, Mark.

因此，我預計下個季度的庫存天數會略有增加。我們大約一半的庫存是晶圓庫或晶片庫。然後是成品庫存，我們仔細檢查，以確保我們擁有標準零件或目錄類型零件的成品庫存，以便我們可以在季度內做出回應，因為我們開始看到一些季度內訂單，特別是經銷商。這就是我們如何看待我們的庫存概況，馬克。

And Mark, just to add to that, the strategic die bank is really important for us. As I visited customers over the past couple of months, the constant refrain I heard globally was -- we aren't sure about what's happening with inventory in the channel or at CMs. But they are very concerned. The OEMs are very concerned that the channel on an aggregate basis has gone too skinny. And so the die bank that we're putting in place helps us protect our final OEM customer and us, to be honest, in a lot of ways.

馬克，補充一點，戰略模具庫對我們來說非常重要。當我在過去幾個月拜訪客戶時，我在全球範圍內聽到的不斷的抱怨是——我們不確定渠道或CM中的庫存發生了什麼。但他們非常擔心。原始設備製造商非常擔心通路在整體上變得過於單薄。因此，老實說，我們正在建立的模具庫可以在許多方面幫助我們保護最終的 OEM 客戶和我們自己。

And so we think that, that's a really important as we go through this sort of turbulent period here in both the industrial and the auto markets.

因此，我們認為，當我們在工業和汽車市場經歷這種動盪時期時，這非常重要。

Quinn Bolton, Needham & Company.

奎因·博爾頓，李約瑟公司。

I'm hoping you might be able to help square the circle here. In the June quarter, you guys saw a pretty heavy decline in revenue. And I think you said at the time that you took four weeks out of end customer inventory with that decline. Then from that June base a quarter ago, you sort of thought you could grow low double digits through the end of the fiscal year. Obviously, we're seeing a little bit of a reset in December.

我希望你能幫助解決這個問題。在六月季度，你們看到收入大幅下降。我想你當時說過，隨著這種下降，你將終端客戶庫存減少了四個星期。然後，從一個季度前的六月基數開始，你有點認為到本財年結束時你可以達到低兩位數的成長。顯然，我們在 12 月看到了一些重置。

And I understand your comments about pockets of inventory and lower demand in North America and Europe, given some of the production cuts, but that's only a third of your total sales. And so I guess I'm just trying to get a better sense from you, where do you think end consumption of your devices are? It sounds like inventory in China, Japan and most of the rest of Asia is back to pretty normalized levels. And so I'm just trying to figure out, are you sort of implying that the run rate of your business kind of sell out POS type? Is that now well below prior expectations? Or is there still a fair amount of inventory digestion embedded in the September and December numbers?

我理解您對北美和歐洲的庫存和需求下降的評論，考慮到一些減產，但這僅佔您總銷售額的三分之一。所以我想我只是想從您那裡更好地了解您認為設備的最終消耗在哪裡？聽起來中國、日本和亞洲其他大部分地區的庫存已恢復到相當正常的水平。所以我只是想弄清楚，您是否在暗示您的業務運行率屬於 POS 類型？現在是否遠低於先前的預期？或者 9 月和 12 月的數據中是否仍然存在相當數量的庫存消化？

Quinn, this is Vineet. Great question. And I want to start by saying that we still see really strong demand -- end market demand for our products and solutions, right? And my conversations with various customers as I went through all the regions that we serve really confirm that. And I think the short answer to your question is we have pockets of further inventory digestion to go namely in North America and European auto that are taking a little bit longer than we expected, okay?

奎因，這是維尼特。很好的問題。首先我想說，我們仍然看到非常強勁的需求——終端市場對我們的產品和解決方案的需求，對嗎？當我走遍我們服務的所有地區時，我與不同客戶的對話確實證實了這一點。我認為對你問題的簡短回答是，我們還有一些進一步的庫存消化工作，即北美和歐洲汽車的庫存需要比我們預期的時間長一點，好嗎？

Had the production cuts not happened. And keep in mind that it's not just the OEMs, it's the tiers are based in North America and perhaps have more exposure in North America and in Europe that are probably sitting on a little bit of excess inventory that they have got to work through. It's compounded by the cost they are seeing in North America and Europe, right, which are pretty substantial, and you only have to look at what German OEMs and North American OEMs have announced in terms of repositioning their businesses and trying to get ready for this electric transition to an electrified future. So that's really what's weighing on them. I think if you look beyond that, I would say it's playing out pretty much the way we thought it would.

如果沒有發生減產的話。請記住，不僅僅是原始設備製造商，而是位於北美的各個層級，可能在北美和歐洲有更多的曝光度，他們可能需要處理一些過剩的庫存。他們在北美和歐洲看到的成本非常高，對吧，這是相當可觀的，你只需要看看德國原始設備製造商和北美原始設備製造商在重新定位其業務並試圖為此做好準備方面所宣布的內容向電氣化未來的電動過渡。所以這確實是他們的壓力。我想，如果你看得更遠，我會說事情的發展幾乎和我們想像的一樣。

And so this may be a sort of a difficult number, but would you sort of think that as you get through these pockets of inventory over the next one to two quarters, I mean, do you think natural consumption or demand for your parts, is that closer to, say, $225 million a quarter? Is it closer to $250 million a quarter? Or do you think that it's lower again, if you're a $175 million in December, getting back to kind of the prior run rate of $250 million or above. That's a pretty hefty jump, and I'm just trying to figure out whether you think that's still kind of in the cards or whether there may have been demand destruction or just lower production kind of says maybe you don't think you get back to that level all that quickly.

因此，這可能是一個困難的數字，但您是否會認為，當您在接下來的一到兩個季度內處理這些庫存時，我的意思是，您認為零件的自然消耗或需求是比如說，每季接近2.25 億美元？每季接近 2.5 億美元嗎？或者，如果您 12 月的資產為 1.75 億美元，回到之前的 2.5 億美元或更高的運行率，您是否認為它會再次降低？這是一個相當大的跳躍，我只是想弄清楚你是否認為這仍然是可能的，或者是否可能存在需求破壞或只是產量下降，也就是說你可能認為你不會回到原來的狀態這麼快就達到這個水平了。

Yeah, Quinn, this is Derek. So the way I'll maybe approach this is when I go back to Q4 of FY24, we were at about $250 million, and we had some excess inventory shipping in that quarter that we talked about of about $25 million and nothing has changed in the end markets. We still see the end markets growing low double digits. We've actually refreshed the data. We've refreshed our investor presentation that we posted to our Internet this morning. So nothing has changed there. In terms of when that timing is when we get back to that run rate, that's hard to call right now, given the near-term choppiness.

是的，奎因，這是德瑞克。因此，我可能會採取的方法是，當我回到2024 財年第四季時，我們的營收約為2.5 億美元，該季度我們有一些過剩的庫存運輸，我們談到的約為2500 萬美元，並且在終端市場。我們仍然看到終端市場以較低的兩位數成長。我們實際上已經刷新了資料。我們更新了今天早上發佈到網路上的投資者簡報。所以那裡沒有任何改變。就我們何時恢復到運行速度而言，考慮到近期的波動，現在很難預測。

And our target model was for automotive SAAR or production, plus at least 8% to 10%. I would tell you that our consumption estimates still track that, right? So it's really a question of how long does it take for the inventory bubble to get completely digested. And as I said, it's largely now an artifact in North America and Europe, obviously, there might be some tiers that are more than North America and Europe. So that's -- you've got to factor that in. But we believe that the consumption model continues to be intact.

我們的目標模型是汽車 SAAR 或生產，再加上至少 8% 到 10%。我想告訴你，我們的消費預測仍然追蹤這一點，對吧？所以這實際上是一個庫存泡沫需要多長時間才能完全消化的問題。正如我所說，它現在很大程度上是北美和歐洲的神器，顯然，可能有一些等級比北美和歐洲更高。所以，你必須考慮到這一點。但我們相信消費模式仍然完好無損。

Got it. So kind of end consumption, maybe in that $225 million a quarter range growing at sort of 10%. So once you get back to that level, whether that's '25 or fiscal '26, we'll see. But it sounds like that's kind of the right end demand levels to be thinking about?

知道了。最終消費可能在每季 2.25 億美元的範圍內以 10% 的速度成長。因此，一旦回到這個水平，無論是 25 年還是 26 財年，我們都會拭目以待。但這聽起來像是值得考慮的正確最終需求水準？

Yes. We still believe in our long-term model, as I mentioned, we went through a pretty extensive exercise both on our strategic planning and updating our investor presentation that really corroborated those numbers. And some of the interesting things you'll see in that investor presentation is even when we went public 4 years ago, there was an expectation of EV growth around the world or xEV growth being pretty good believe it or not, it's actually better today for the next 5 years. So we were pleasantly surprised in some of the data we filed. We do that. We're hearing that from our customers, but the data corroborated that.

是的。我們仍然相信我們的長期模型，正如我所提到的，我們在策略規劃和更新投資者演示方面進行了相當廣泛的練習，這確實證實了這些數字。你會在投資者演示中看到一些有趣的事情，即使我們四年前上市時，人們也對全球電動車成長或 xEV 成長相當不錯的預期感到滿意，不管你信不信，今天實際上更好了未來5年。因此，我們對我們提交的一些數據感到驚訝。我們這樣做。我們從客戶那裡聽到了這一點，但數據證實了這一點。

Thank you very much. At this time, I am showing no further questions in the queue. I would now like to turn the call back over to Jalene for closing remarks.

非常感謝。目前，我在隊列中沒有顯示任何其他問題。我現在想將電話轉回賈琳以進行結束語。

Thank you, Corey. We appreciate you taking the time to join us. This concludes this morning's conference call.

謝謝你，科里。我們感謝您抽空加入我們。今天上午的電話會議到此結束。

Thank you for your participation in today's conference call. This does conclude the program. You may now disconnect.

感謝您參加今天的電話會議。這確實結束了該程式。您現在可以斷開連線。