艾睿電子 (ARW) 2023 Q1 法說會逐字稿

Hello, and thank you for standing by. My name is Regina, and I will be your conference operator today. At this time, I would like to welcome everyone to the Arrow Electronics First Quarter 2023 Earnings Conference Call. (Operator Instructions) I would now like to turn the conference over to Raj Agrawal, Senior Vice President and Chief Financial Officer. Please go ahead.

你好，謝謝你的支持。我叫 Regina，今天我將擔任你們的會議接線員。此時，我想歡迎大家參加艾睿電子 2023 年第一季度收益電話會議。 （操作員說明）我現在想將會議轉交給高級副總裁兼首席財務官 Raj Agrawal。請繼續。

Thank you, operator, and hello, everyone. Many of you have gotten to know our Chief Accounting Officer, Rick Seidlitz, over the last few quarters as we provided interim IR support. I want to thank Rick for his leadership in helping the company navigate the transition.

謝謝接線員，大家好。在過去的幾個季度中，我們提供了臨時 IR 支持，你們中的許多人已經認識了我們的首席會計官 Rick Seidlitz。我要感謝里克在幫助公司渡過轉型過程中發揮的領導作用。

With that, I'm pleased to introduce our new Vice President of Investor Relations, Anthony Bencivenga. Anthony joined Arrow in February, having most recently served as Head of Investor Relations for a semiconductor equipment company. In addition to a background in Finance and Investor Relations, Anthony has an engineering background as well. We're excited to have Anthony on board, and I'll turn it over to him to get us started today.

有了這個，我很高興地介紹我們新的投資者關係副總裁 Anthony Bencivenga。 Anthony 於 2 月加入 Arrow，最近擔任一家半導體設備公司的投資者關係主管。除了金融和投資者關係方面的背景，Anthony 還擁有工程背景。我們很高興 Anthony 加入，我會把它交給他讓我們今天開始。

Thank you, Raj. I'm excited to be on board. I'd like to welcome everyone to the Arrow Electronics First Quarter 2023 Earnings Conference Call.

謝謝你，拉吉。我很高興能加入。歡迎大家參加艾睿電子 2023 年第一季度收益電話會議。

In addition to Raj, joining us today is our President and Chief Executive Officer, Sean Kerins.

除了 Raj，今天加入我們的還有我們的總裁兼首席執行官 Sean Kerins。

During this call, we'll make forward-looking statements, including statements about our business outlook strategies and future financial results, which are based on our predictions and expectations as of today. Our actual results could differ materially due to a number of risks and uncertainties, including the risk factors described in our most recent 10-K and 10-Q filings with the SEC.

在這次電話會議中，我們將做出前瞻性陳述，包括關於我們的業務展望戰略和未來財務結果的陳述，這些陳述基於我們截至今天的預測和預期。由於許多風險和不確定性，包括我們最近向美國證券交易委員會提交的 10-K 和 10-Q 文件中描述的風險因素，我們的實際結果可能存在重大差異。

We undertake no obligation to update publicly or revise any of the forward-looking statements as a result of new information or future events.

我們不承擔因新信息或未來事件而公開更新或修改任何前瞻性陳述的義務。

As a reminder, some of the figures we will discuss on today's call are non-GAAP measures, which are not intended to be a substitute for GAAP results. We've reconciled these non-GAAP measures to the most direct comparable GAAP financial measures in this quarter's associated earnings release or Form 10-Q. You can access our earnings release at investor.arrow.com, along with the CFO commentary, the non-GAAP earnings reconciliation and a replay of this call. Following our prepared remarks today, we'll be available to take your questions.

提醒一下，我們將在今天的電話會議上討論的一些數據是非 GAAP 衡量指標，不能替代 GAAP 結果。我們已將這些非 GAAP 指標與本季度相關收益發布或 10-Q 表中最直接的可比 GAAP 財務指標進行了核對。您可以在 investor.arrow.com 上訪問我們的收益發布，以及 CFO 評論、非 GAAP 收益調節和本次電話會議的重播。在我們今天準備好的發言之後，我們可以回答您的問題。

And I will now hand the call over to our President and CEO, Sean Kerins.

我現在將把電話轉交給我們的總裁兼首席執行官 Sean Kerins。

Thanks, Anthony, and thanks to all of you for joining us today. First, I'll discuss our Q1 results and then turn it over to Raj for more detail on our financials and the outlook for our second quarter.

謝謝安東尼，也感謝大家今天加入我們。首先，我將討論我們第一季度的業績，然後將其轉交給 Raj，以了解有關我們第二季度財務狀況和前景的更多詳細信息。

Our global team delivers technology solutions in the form of engineered and critically needed components to a variety of OEM markets as well as hardware, software and cloud solutions to the enterprise. In doing so, I'm happy to report we delivered solid results in the first quarter with both sales and earnings per share above the midpoint of our guidance. While the industry backdrop is challenging, we continue to execute well in this environment.

我們的全球團隊以工程和急需組件的形式為各種 OEM 市場提供技術解決方案，並為企業提供硬件、軟件和雲解決方案。在這樣做的過程中，我很高興地報告我們在第一季度取得了可觀的業績，銷售額和每股收益均高於我們指導的中點。儘管行業背景充滿挑戰，但我們在這種環境下繼續表現出色。

In global components, strength in industrial and automotive end markets drove revenue for the business above the high end of our guidance. In Europe, we achieved robust year-on-year and sequential growth. Industrial and transportation end markets helped drive record revenue while maintaining healthy levels of backlog.

在全球零部件方面，工業和汽車終端市場的實力推動業務收入高於我們指導的高端。在歐洲，我們實現了強勁的同比和環比增長。工業和運輸終端市場幫助推動創紀錄的收入，同時保持健康的積壓水平。

In the Americas, we saw relative strength in industrial, automotive and aerospace and defense, and we were encouraged by growth in design-related activity. As fully expected, the decline in the Americas revenue is mainly a function of the normalization we see in the shortage market.

在美洲，我們看到了工業、汽車、航空航天和國防領域的相對實力，我們對設計相關活動的增長感到鼓舞。正如預期的那樣，美洲收入的下降主要是我們在短缺市場看到的正常化的結果。

In both our Western regions, we continue to see strength in interconnect, passives and electromechanical components, reflecting our ongoing efforts to serve this segment of the electronics market.

在我們的兩個西部地區，我們繼續看到互連、無源和機電元件的優勢，反映出我們為服務這部分電子市場所做的持續努力。

In Asia, the environment continues to be challenging across most end markets and certainly in China as customers manage through their on-hand inventories. However, by focusing on our suppliers and customers, the team executed well and delivered beyond their original commitments for the quarter. Profitability in our global components business was healthy in the first quarter.

在亞洲，隨著客戶管理現有庫存，大多數終端市場的環境仍然充滿挑戰，當然在中國也是如此。然而，通過專注於我們的供應商和客戶，該團隊執行得很好，並超出了他們本季度的最初承諾。我們全球零部件業務的盈利能力在第一季度表現良好。

Our investments in engineering capabilities and the infrastructure to enable supply chain services are providing support to our operating income. While margins may further normalize, I want to reiterate what we said during our fourth quarter earnings call, which is that our long-term target for global components operating margin lies somewhere between 5.5% and 6%. Although demand has softened in certain markets and book-to-bill remains below parity, we still enjoy visibility to demand over a longer time horizon as compared to pre-pandemic levels.

我們在工程能力和支持供應鏈服務的基礎設施方面的投資正在為我們的營業收入提供支持。雖然利潤率可能會進一步正常化，但我想重申我們在第四季度財報電話會議上所說的話，即我們對全球零部件營業利潤率的長期目標介於 5.5% 和 6% 之間。儘管某些市場的需求已經疲軟並且訂單出貨比仍低於平價，但與大流行前的水平相比，我們仍然可以看到較長時間範圍內的需求。

Therefore, our backlog continues to remain elevated, and we're comfortable with the quality of our inventory to support our business needs moving forward. Across all 3 global component regions we're fortunate to serve and deserve -- excuse me, a diverse set of customers across a variety of markets with technologies from a broad spectrum of component suppliers. We continue to focus on our core business, helping our customers secure products they most need while at the same time, extending our engineering capabilities where they can add further value.

因此，我們的積壓繼續保持高位，我們對我們的庫存質量感到滿意，以支持我們向前發展的業務需求。在所有 3 個全球組件區域，我們有幸服務並應得 - 對不起，來自各種組件供應商的技術的各種市場的多元化客戶。我們繼續專注於我們的核心業務，幫助我們的客戶獲得他們最需要的產品，同時擴展我們的工程能力，讓他們可以增加更多的價值。

Now switching gears to our enterprise computing solutions business. Sales were up 3% year-on-year in constant currency, which was within the range of our guidance and consistent with overall market dynamics. Demand was solid in Europe. Both hardware and software sales increased by double digits year-on-year in constant currency across most technology categories with notable contributions from cybersecurity, compute and enterprise software.

現在轉向我們的企業計算解決方案業務。按固定匯率計算，銷售額同比增長 3%，這在我們的指導範圍內，並且與整體市場動態一致。歐洲需求強勁。大多數技術類別的硬件和軟件銷售額同比增長兩位數，網絡安全、計算和企業軟件貢獻顯著。

While there are signs the hardware supply chain is improving. We're experiencing a softer IT spending market in North America, which dampened year-on-year sales in the region, in the quarter. In both regions, we continue to see the IT market shifting to Everything-as-a-Service, and believe we're well positioned to help our suppliers and customers navigate this transition.

雖然有跡象表明硬件供應鏈正在改善。我們在北美經歷了一個疲軟的 IT 支出市場，這抑制了該地區本季度的同比銷售額。在這兩個地區，我們繼續看到 IT 市場向“一切即服務”轉變，並且相信我們有能力幫助我們的供應商和客戶駕馭這一轉變。

Before I hand the call over to Raj to provide more details on our results, I want to reiterate my confidence in the global aero team and our ability to help our suppliers and customers meet their go-to-market and production needs. Make no mistake, our employees' collective understanding of our markets and their commitment to our suppliers and customers is what drives our success, and I appreciate their determination and hard work.

在我將電話轉給 Raj 以提供有關我們結果的更多詳細信息之前，我想重申我對全球航空團隊的信心以及我們幫助供應商和客戶滿足其上市和生產需求的能力。毫無疑問，我們員工對市場的集體理解以及他們對供應商和客戶的承諾是推動我們成功的動力，我感謝他們的決心和辛勤工作。

With that, I'll hand it over to Raj.

有了這個，我會把它交給 Raj。

Thanks, Sean. On a consolidated basis, first quarter sales were above the midpoint of our guidance range at $8.7 billion, down 4% year-over-year or 2% on a constant currency basis. .

謝謝，肖恩。在綜合基礎上，第一季度銷售額高於我們指導範圍的中點 87 億美元，同比下降 4% 或按固定匯率計算下降 2%。 .

Changes in foreign currencies negatively impacted sales by $203 million year-over-year, slightly more than our expectation of $182 million impact. And on a quarter-over-quarter basis, currencies positively impacted sales by $150 million.

外幣變動對銷售額產生了 2.03 億美元的同比負面影響，略高於我們預期的 1.82 億美元影響。與上一季度相比，貨幣對銷售額產生了 1.5 億美元的積極影響。

Global component sales were $6.9 billion, slightly exceeding the high end of our guidance range and down 5% year-on-year. Enterprise computing solutions sales were $1.9 billion, within our guidance range and flat year-on-year.

全球零部件銷售額為 69 億美元，略高於我們指導範圍的上限，同比下降 5%。企業計算解決方案銷售額為 19 億美元，在我們的指導範圍內，同比持平。

Consolidated non-GAAP gross margin of 12.7% was down 60 basis points year-on-year, principally due to reduced volumes in the component shortage market, partially offset by improved product and region mix in the enterprise computing solutions business. Non-GAAP operating expenses were $681 million, flat to Q1 of last year and up 30 basis points as a percentage of sales.

綜合非美國通用會計準則毛利率為 12.7%，同比下降 60 個基點，這主要是由於組件短缺市場的銷量下降，部分被企業計算解決方案業務的產品和地區組合改善所抵消。非 GAAP 運營費用為 6.81 億美元，與去年第一季度持平，佔銷售額的百分比上升 30 個基點。

Non-GAAP operating income was $433 million or 5% of sales with global components operating margin coming in at 6.2% and enterprise computing solutions coming in at 4.4%.

非美國通用會計準則營業收入為 4.33 億美元，佔銷售額的 5%，全球組件營業利潤率為 6.2%，企業計算解決方案營業利潤率為 4.4%。

Interest and other expense was $80 million, which was higher than expected due to the higher interest rates and higher average daily borrowings. Our effective tax rate of 21.8% was lower than expected, primarily due to the release of certain international reserves. Diluted EPS on a non-GAAP basis for the first quarter was $4.60 at the high end of our guidance range and based on a 59.5 million share count.

利息和其他費用為 8000 萬美元，高於預期，原因是利率較高且平均每日借款較高。我們 21.8% 的實際稅率低於預期，這主要是由於釋放了某些國際儲備。基於 5950 萬股股票，第一季度非 GAAP 稀釋每股收益為 4.60 美元，處於我們指導範圍的高端。

Now turning to the balance sheet and cash flow. Net working capital was roughly flat sequentially from Q4 of last year to $7.2 billion. Accounts receivable came down by 14% sequentially to $10.7 billion. Days of sales outstanding declined from 120 last quarter to 111 at the end of the first quarter. Accounts payable reduced by 14% sequentially to $9 billion, bringing days of payables down to 104 million from 114 last quarter. The sequential decline in both receivables and payables is largely due to seasonality in our ECS business.

現在轉向資產負債表和現金流量。淨營運資金與去年第四季度相比大致持平，為 72 億美元。應收賬款環比下降 14% 至 107 億美元。銷售未完成天數從上一季度的 120 天下降到第一季度末的 111 天。應付賬款環比下降 14% 至 90 億美元，使應付賬款天數從上一季度的 114 天減少至 1.04 億天。應收賬款和應付賬款的環比下降主要是由於我們 ECS 業務的季節性。

Inventory increased 4% to $5.5 billion with inventory turns declining largely due to seasonality from 6.1% last quarter to 5.5% this quarter. Our cash cycle was 73 days, which was a 7-day increase from the fourth quarter, primarily driven by the seasonality of the business and a 13-day increase year-over-year, primarily due to inventory increases, which are largely related to pricing.

庫存增加 4% 至 55 億美元，庫存周轉率下降主要是由於季節性因素，從上一季度的 6.1% 下降到本季度的 5.5%。我們的現金周期為 73 天，比第四季度增加了 7 天，這主要是受業務季節性的推動，同比增加 13 天，這主要是由於庫存增加，這在很大程度上與價錢。

As a reminder, our inventory investments allow us to support customer demand, and we have contributed -- we have continued to generate strong returns in the process.

提醒一下，我們的庫存投資使我們能夠支持客戶需求，我們做出了貢獻——我們在這個過程中繼續產生強勁的回報。

Operating cash flow was $224 million. Net debt for the first quarter was sequentially up slightly from Q4 at $3.7 billion. Total liquidity stands at $2.3 billion, including our cash balance of $206 million. We believe we have adequate liquidity to fund our future operations, and investments in working capital.

經營現金流為 2.24 億美元。第一季度的淨債務為 37 億美元，較第四季度略有上升。流動性總額為 23 億美元，包括我們的現金餘額 2.06 億美元。我們相信我們有足夠的流動性來為我們未來的運營和營運資本投資提供資金。

Our strong profitability and effective management of our balance sheet enabled us to deliver on our priority of returning cash to shareholders by repurchasing shares in the amount of $300 million during the quarter. At the end of the first quarter, our remaining stock repurchase authorization stands at approximately $1 billion.

我們強大的盈利能力和對資產負債表的有效管理使我們能夠在本季度通過回購 3 億美元的股票來實現向股東返還現金的優先事項。在第一季度末，我們剩餘的股票回購授權約為 10 億美元。

Please keep in mind that the information I've shared during this call is a high-level summary of our financial results. For more details regarding the business segment results, please refer to the CFO commentary published on our website this morning.

請記住，我在本次電話會議中分享的信息是我們財務業績的高級摘要。有關業務部門業績的更多詳細信息，請參閱今天上午在我們網站上發布的首席財務官評論。

Now turning to second quarter non-GAAP guidance. We expect sales for the second quarter to be between $8.42 billion and $9.02 billion. We expect global component sales to be between $6.64 billion and $7.04 billion, which at the midpoint is flat from prior quarter. We expect enterprise computing solutions sales to be between $1.78 billion and $1.98 billion, which at the midpoint is also flat to prior quarter and represents a 6% decline year-on-year, consistent with the state of the IT spending market.

現在轉向第二季度非 GAAP 指導。我們預計第二季度的銷售額將在 84.2 億美元至 90.2 億美元之間。我們預計全球零部件銷售額將在 66.4 億美元至 70.4 億美元之間，與上一季度持平。我們預計企業計算解決方案銷售額將在 17.8 億美元至 19.8 億美元之間，中值也與上一季度持平，同比下降 6%，與 IT 支出市場的狀況一致。

We are assuming a tax rate of 23.5% and interest expense of approximately $90 million. Our non-GAAP diluted earnings per share is expected to be between $4.25 and $4.45 on an average diluted share count of 58 million shares, both a higher tax rate and higher interest expense are the primary drivers for the sequential change in EPS.

我們假設稅率為 23.5%，利息支出約為 9000 萬美元。我們的非 GAAP 攤薄後每股收益預計在 4.25 美元至 4.45 美元之間，平均攤薄後每股收益為 5800 萬股，更高的稅率和更高的利息支出是每股收益連續變化的主要驅動因素。

We estimate changes in foreign currencies will increase sales growth for Q2 by $12 million and have a negligible effect on EPS compared to the prior year. Compared to the prior quarter, we estimate changes in foreign currencies will increase sales growth for Q2 by $54 million and EPS growth by $0.04.

我們估計外幣的變化將使第二季度的銷售額增長 1200 萬美元，並且與去年相比對每股收益的影響可以忽略不計。與上一季度相比，我們估計外幣的變化將使第二季度的銷售額增長 5400 萬美元，每股收益增長 0.04 美元。

I'll now turn the call over to the operator for Q&A.

我現在將電話轉給接線員進行問答。

(Operator Instructions) Our first question comes from the line of Matt Sheerin with Stifel.

（操作員說明）我們的第一個問題來自 Stifel 的 Matt Sheerin。

My first question relates to your component business and the inventory build. Looks like inventories were still up significantly year-over-year and your interest expense, obviously up significantly as well. With lead times coming in, you would think that you'd be looking at unwinding some of that inventory. So what's the plans there? And how should we think about interest expense as we get through the year?

我的第一個問題與您的組件業務和庫存構建有關。看起來庫存仍同比顯著增加，您的利息支出也明顯增加。隨著交貨時間的到來，您會認為您正在考慮解除一些庫存。那麼那裡的計劃是什麼？當我們度過這一年時，我們應該如何考慮利息支出？

Thanks, Matt. Let me talk a little bit about some of the dynamics impacting our inventory picture, and I'll let Raj talk a little bit more about what that means for interest expense.

謝謝，馬特。讓我談談影響我們庫存情況的一些動態，我會讓 Raj 多談談這對利息支出意味著什麼。

But look, I think if you look at our inventory builds over the past 3 quarters, it's progressively gotten smaller each time. If you look at it year-over-year, that's largely a function of the price increases that came into the business because unit volumes are only now starting to catch up to something close to flat year-on-year. There was a sequential increase. We don't think of it as significant.

但是看，我想如果你看看我們過去 3 個季度的庫存量，它每次都在逐漸變小。如果你逐年看，這在很大程度上是業務價格上漲的結果，因為單位銷量現在才開始趕上接近同比持平的水平。有一個連續的增加。我們認為它並不重要。

Remember, and you probably have seen this in past cycles when lead times will start moving around as they are, including coming in, timing gets to be a little bit less predictable, and receipts sometimes occur later in the quarter than you might think. So the sequential increase is not something we're at all concerned with. We feel good about the quality of the inventory we've got on hand.

請記住，您可能在過去的周期中已經看到了這一點，當時交貨時間將開始按原樣移動，包括進來，時間變得有點難以預測，並且收貨有時會在本季度晚些時候發生，比您想像的要晚。所以連續增加不是我們關心的事情。我們對手頭庫存的質量感到滿意。

I'm very confident in our ability to sell through it. And I think the most important point is if you look at our turns in the core global component business at Q1 exit, we were right on or slightly above our historical targets and expectations both for semiconductor and IP&E.

我對我們通過它銷售的能力非常有信心。而且我認為最重要的一點是，如果你看看我們在第一季度退出時核心全球組件業務的轉變，我們恰好或略高於我們對半導體和 IP&E 的歷史目標和預期。

And Matt, let me just add a little bit about interest expense. It is up year-over-year and sequentially as well. It's not unexpected given the interest rate environment that we're in and the larger working capital balances we have, that's just the way the business is set up.

馬特，讓我補充一點關於利息支出的內容。它同比和連續增長。考慮到我們所處的利率環境和我們擁有的更大的營運資金餘額，這並不出人意料，這正是業務的建立方式。

To the extent that the business starts to generate cash in a more protracted slowdown, then we would certainly be able to pay down debt. But we're comfortable with where we are in terms of overall debt levels and continue to manage the business within an investment-grade credit rating framework. And so interest expense was a bit higher in the quarter than we had expected just given the higher balances, but very manageable overall.

如果業務在更長期的放緩中開始產生現金，那麼我們肯定能夠償還債務。但我們對整體債務水平感到滿意，並繼續在投資級信用評級框架內管理業務。因此，考慮到較高的餘額，本季度的利息支出略高於我們的預期，但總體而言非常可控。

Okay. And my second question relates to your largest semiconductor supplier. In your recent 10-K, you reported that, that supplier revenue was down 18% year-over-year in 2022, while its own revenue was down just 9%. So it looks like that, that supplier is taking more product on a direct basis. So could you -- to the extent that you can talk about that relationship, the puts and takes there and how you see that longer term?

好的。我的第二個問題與你們最大的半導體供應商有關。在您最近的 10-K 中，您報告說，供應商收入在 2022 年同比下降了 18%，而其自身收入僅下降了 9%。所以看起來，供應商正在直接購買更多產品。那麼你能不能——在某種程度上你可以談論這種關係，那裡的投入和投入以及你如何看待長期？

So Matt, probably no surprise to you, but we really don't ever speak about any supplier specifically. We're focused on the broader market and our complete semiconductor line card, and we feel good about what's in front of us and our ability to navigate this cycle as it steadily corrects, but I can't speak to what's happening with any one supplier in particular.

所以馬特，你可能並不感到驚訝，但我們真的從來沒有專門談論過任何供應商。我們專注於更廣闊的市場和我們完整的半導體產品線卡，我們對我們面前的事情以及我們在這個週期穩步糾正時駕馭這個週期的能力感到滿意，但我無法談論任何一家供應商正在發生的事情尤其。

Your next question comes from the line of Joe Quatrochi with Wells Fargo.

你的下一個問題來自富國銀行的 Joe Quatrochi。

I was wondering your nearest competitor last night talked about customers pushing orders. I was wondering if you could kind of just give us some comments around that, if you're seeing that as well? And then any color on cancellation rates?

我想知道你最近的競爭對手昨晚談到客戶推動訂單。我想知道你是否可以就此給我們一些評論，如果你也看到了？然後取消率有什麼顏色嗎？

Sure, Joe. As for -- not sure I understand the first part of your question, but what I can say is a couple of things. One, we talked about book-to-bill upfront. They are below parity, but we're pleased that, in fact, over the past couple of quarters, they have not eroded further.

當然，喬。至於——不確定我是否理解你問題的第一部分，但我可以說幾件事。第一，我們預先討論了預訂到賬單。它們低於平價，但我們很高興，事實上，在過去幾個季度中，它們並沒有進一步下降。

And in fact, did not eroded even in the past 30 days of this quarter. We feel good about that. We are engaged in reschedule activity, and that is a good way for us to collaborate with our suppliers and help our customers meet their production needs. And that's a great way for us to stay close to both our suppliers and customers, and we are doing that throughout the world.

事實上，即使在本季度的過去 30 天裡，也沒有受到侵蝕。我們對此感覺很好。我們正在進行重新安排活動，這是我們與供應商合作並幫助我們的客戶滿足其生產需求的好方法。這是我們與供應商和客戶保持密切聯繫的好方法，我們正在全球範圍內這樣做。

As importantly or more importantly, we consider any cancellation activity as modest. At best, and it has not accelerated either. So we think we have a good handle on where we sit relative to our backlog, what's happening with our customers' production needs and, of course, the way in which we're collaborating with our suppliers to get the right inventory in for the right demand at the right time.

同樣重要或更重要的是，我們認為任何取消活動都是適度的。充其量，它也沒有加速。因此，我們認為我們可以很好地處理我們相對於我們的積壓情況，我們客戶的生產需求發生了什麼，當然還有我們與供應商合作以獲得正確庫存的方式在正確的時間要求。

Our backlog is still significant. The delinquent piece of it is still significant. But if you consider all the work we do to constantly scrub it that I just described, we also feel good in saying that the majority of it is firm versus forecasted. So again, I think we've got a good handle on what's happening with inventory and our backlog.

我們的積壓仍然很大。它的拖欠部分仍然很重要。但是，如果你考慮到我們所做的所有工作都是為了不斷清理我剛才描述的它，我們也很高興地說其中大部分是堅定的而不是預測的。因此，我認為我們已經很好地處理了庫存和積壓的情況。

And then as a follow-up, the shortage market services continues to be kind of a headwind on margins in the component business. What inning are we in, in terms of starting that, that impact starting to be mitigated?

然後作為後續行動，短缺市場服務繼續成為組件業務利潤率的逆風。就開始而言，我們處於哪一局，這種影響開始得到緩解？

Yes, sure thing. So I'm glad you asked because I want to be clear, the operating margin impact you saw in components, both annually and sequentially was strictly a function of the decline we see in the shortage market.

是的，當然。所以我很高興你問這個問題，因為我想說清楚，你在組件中看到的營業利潤率影響，無論是每年還是連續，都是我們在短缺市場看到的下降的函數。

And that's -- that's evidence of the fact that the underlying pricing and margins in the core business are holding up nicely, and they held up nicely in all 3 regions in the quarter. So going forward, relative to the impact we see from the shortage market as it continues to decline. We see some additional impact this quarter. It's all built into our guidance. And we expect it to fully abate across the second half.

那就是——這證明了核心業務的基本定價和利潤率保持良好，並且在本季度的所有 3 個地區都表現良好。所以展望未來，相對於我們從短缺市場看到的影響，因為它繼續下降。我們在本季度看到了一些額外的影響。這一切都融入了我們的指導方針。我們預計它會在下半年完全減弱。

Your next question comes from the line of Ruplu Bhattacharya with Bank of America.

你的下一個問題來自美國銀行的 Ruplu Bhattacharya。

Sean, in ECS, Europe was strong and you pointed out that Americas, there's some softness in enterprise IT spending. So 2 parts of the question. First, do you think Europe remains strong? Or do you think there is some contagion that can slow spending there?

肖恩，在 ECS 方面，歐洲表現強勁，您指出美洲在企業 IT 支出方面有些疲軟。所以問題的兩個部分。首先，您認為歐洲仍然強大嗎？或者你認為有一些傳染可以減緩那裡的消費嗎？

And then within ECS, the second part is, your software sales have typically been strong every quarter. So when you sell vendor software, does that set up a recurring payment to you as well? And if so, is there a way to size how much of the ECS revenue is recurring?

然後在 ECS 中，第二部分是，您的軟件銷售通常每個季度都很強勁。那麼，當您銷售供應商軟件時，是否也為您設置了定期付款？如果是這樣，是否有辦法確定 ECS 收入中有多少是經常性的？

So Ruplu, let me start with your first question and just talk a little bit about the market because we do see a little bit of a tale of 2 cities. I think it's widely known given some of the more recent reports. There is a bit of a tougher environment here for IT spending in North America.

所以 Ruplu，讓我從你的第一個問題開始，談談市場，因為我們確實看到了 2 個城市的故事。鑑於最近的一些報導，我認為它已廣為人知。北美的 IT 支出環境有點艱難。

We saw that in Q1, hard to predict how much longer that persists. We're reasonably confident in our Q2 guidance, and I think we're showing the margin expansion both sequentially and year-on-year. But the market is still soft here.

我們在第一季度看到了這種情況，很難預測這種情況會持續多久。我們對我們的第二季度指引有相當的信心，我認為我們正在展示利潤率連續和同比增長。但這裡的市場仍然疲軟。

Europe appears to be more resilient. We don't yet see any contagion that necessarily links the 2. You can note that our business and components in Europe was also strong with a healthy outlook for Q2 as well. So I think the markets are just a little bit different in that regard.

歐洲似乎更有彈性。我們還沒有看到任何必然將兩者聯繫起來的傳染。你可以注意到，我們在歐洲的業務和組件也很強勁，第二季度的前景也很健康。所以我認為市場在這方面略有不同。

As for the mix inside of our ECS business, you're right. We intentionally continue to drive that business to more software, more cloud. Obviously, we account for that differently. It tends to have a downward impact on the sales line, should have an upward impact on the margin line.

至於我們 ECS 業務的內部組合，你是對的。我們有意繼續將該業務推向更多軟件、更多雲。顯然，我們對此有不同的解釋。它往往對銷售線有向下的影響，應該對利潤線有向上的影響。

If you look at our backlog in ECS, it's still at record levels. And as the hardware business and the hardware backlog has started to flush, you realize that a good chunk of the remaining backlog is all tied to what I would call unbilled revenue related to cloud and software as customers look to deploy that on a subscription versus perpetual basis.

如果您查看我們在 ECS 中的積壓工作，它仍處於創紀錄水平。隨著硬件業務和硬件積壓訂單開始大量湧現，您意識到剩餘積壓訂單中的很大一部分都與我所說的與雲和軟件相關的未開票收入相關，因為客戶希望通過訂閱而不是永久部署它基礎。

So you're right. We have a growing backlog of what I would call recurring like revenue in the ECS business. It's becoming more significant. And I think it's the right time, down the road, we'll be prepared to give you more visibility into what that looks like going forward.

所以你是對的。我們有越來越多的積壓，我稱之為 ECS 業務中的經常性收入。它變得越來越重要。而且我認為現在是正確的時間，在未來，我們將準備好讓您更多地了解未來的發展情況。

Okay. Okay. I appreciate the details. Maybe if I can ask a follow-up on the components business. Are you seeing a market inventory correction in components? And if so, how long do you think that will last? And how do you size any excess inventory in the channel? And where is this inventory most elevated? Is it that EMS? Or do you have a view into where in the channel there is more inventory?

好的。好的。我很欣賞細節。也許我可以詢問有關組件業務的後續信息。您是否看到組件的市場庫存調整？如果是這樣，您認為這會持續多久？您如何確定渠道中多餘庫存的大小？這個庫存在哪裡最高？是那個EMS嗎？或者您是否了解渠道中哪裡有更多庫存？

So I'll bring you back to what I said a few minutes ago about inventory in general. We do know that our returns have come down. We are comfortable there's still -- levels that while starting to look more normal, don't give us great concern. We're managing this very carefully. I'd say the inventory build in the ecosystem is fairly broad-based.

所以我會帶你回到我幾分鐘前所說的關於一般庫存的內容。我們確實知道我們的回報已經下降。我們很高興仍然有 - 雖然開始看起來更正常，但不要讓我們非常擔心的水平。我們正在非常小心地管理它。我想說生態系統中的庫存構建是相當廣泛的。

I wouldn't say that we pointed to any one piece of the market versus others. Hard to say how long it takes for the customer base to work through the existing inventory levels. But again, I'll point you to the fact that our book-to-bills have not eroded further in the past 1 to 2 quarters nor in the first part of this new quarter.

我不會說我們指出了市場的任何一個部分與其他部分。很難說客戶群需要多長時間才能達到現有庫存水平。但是，我要再次指出一個事實，即我們的訂單出貨比在過去 1 到 2 個季度和這個新季度的第一部分都沒有進一步下降。

So we feel like we're in a market that probably is moving more sideways than falling sharply. And funny enough, sometimes those markets are a little bit more difficult to call. than when something is falling more sharply. But I prefer this scenario because I think it starts to suggest we're maybe experiencing a softer landing.

所以我們覺得我們所處的市場可能正在橫向移動而不是急劇下跌。有趣的是，有時這些市場更難預測。比什麼東西下降得更厲害。但我更喜歡這種情況，因為我認為它開始表明我們可能正在經歷軟著陸。

Your next question comes from the line of Toshiya Hari with Goldman Sachs.

你的下一個問題來自高盛的 Toshiya Hari。

I had a follow-up on the demand outlook in your components business as well. Your Q2 guide, as you guys noted, I suppose, implies sort of a flattish outlook for the June quarter, which is a couple of percentage points below typical seasonality. Can you provide a little bit more context or color by geography or end market? Does anything stand out to the downside? And how are you thinking about the second half vis-à-vis typical seasonality in your components business?

我也跟進了您的組件業務的需求前景。正如你們所指出的，我想你們的第二季度指南暗示了 6 月季度的前景持平，比典型的季節性低幾個百分點。您能否按地理位置或終端市場提供更多背景信息或顏色？有什麼突出的缺點嗎？您如何看待下半年組件業務的典型季節性？

Yes. Sure thing. I wouldn't want to speculate too much about the second half in this environment we're trying to focus primarily on just 90 days out, but and I'm happy to give you some color around what we see in components for the for the second quarter.

是的。當然可以。在這種環境下，我不想過多地推測下半年，我們主要關注僅 90 天，但我很樂意為您介紹我們在組件中看到的內容第二季度。

I'd say it breaks down a little bit differently in each region. We do see Europe again expecting better than seasonal sales results. I would say in the Americas, when you normalize for just the shortage declines we see in that piece of the market. We're roughly in line with what would be normal seasonality. And in Asia, we've got a forecast for sequential sales growth. And is starting to approach more typical seasonality. So we don't feel overly bullish, but we're not overly pessimistic either.

我會說它在每個地區的細分情況有所不同。我們確實看到歐洲再次期待好於季節性的銷售結果。我會說在美洲，當您將我們在該市場看到的短缺下降正常化時。我們大致符合正常的季節性。在亞洲，我們預測了連續的銷售增長。並且開始接近更典型的季節性。因此，我們並不過分看漲，但也不過分悲觀。

Got it. And then as my quick follow-up, just thoughts on -- one for Raj. Maybe thoughts on working capital over the next couple of quarters and implications for free cash flow generation and buybacks and so on and so forth.

知道了。然後作為我的快速跟進，只是想一想——一個關於 Raj 的想法。也許對未來幾個季度的營運資金的想法以及對自由現金流產生和回購等的影響等等。

Yes. Toshiya, yes, I think from a working capital standpoint, we're going to obviously try to manage as tightly as we can. You saw that working capital was flat to the previous quarter. And it really is going to be a function of whether the trajectory of the business overall, that will determine where working capital goes.

是的。 Toshiya，是的，我認為從營運資金的角度來看，我們顯然會盡可能嚴格地管理。你看到營運資金與上一季度持平。這真的將取決於業務的整體軌跡，這將決定營運資金的去向。

From a cash flow standpoint, that's also connected to the same thing. And I would just say that our capital priorities have not really changed overall from a stock buyback standpoint. We continue to invest in the business, and that's really in the working capital. And we're always looking at M&A opportunities even though we haven't done anything significant in the last few years, we continue to look and evaluate.

從現金流的角度來看，這也與同一件事有關。我只想說，從股票回購的角度來看，我們的資本優先事項總體上並沒有真正改變。我們繼續投資於業務，這實際上是在營運資金上。我們一直在尋找併購機會，儘管過去幾年我們沒有做任何重大事情，但我們會繼續尋找和評估。

And then lastly, we want to put our excess capacity and cash flow towards stock buyback to the extent that we see it as a good value, which we continue to see. So that's really the priority of order of investment and we sort of manage all of this with an investment-grade credit rating framework to manage the entire business. So that's sort of how we look at it, Toshiya.

最後，我們希望將我們的過剩產能和現金流用於股票回購，以達到我們認為它具有良好價值的程度，我們將繼續看到這一點。因此，這確實是投資順序的優先事項，我們通過投資級信用評級框架來管理所有這些，以管理整個業務。所以這就是我們的看法，Toshiya。

Would it be fair to expect inventory to trend kind of flat to down going forward? Or is the trajectory still going to be a little bit more positive?

期望庫存在未來趨於持平或下降是否公平？或者軌跡仍然會更積極一點？

I think it just depends from a pricing standpoint, that's not going to really have an impact on inventory itself. But again, we think that we have a great and strong backlog. We know that the inventory there, is there to support that backlog. And we will be able to sell through all of that inventory. And so we feel good about our position as we have it today, Toshiya.

我認為這只是從定價的角度來看，這不會對庫存本身產生真正的影響。但同樣，我們認為我們有大量積壓的訂單。我們知道那裡的庫存可以支持積壓。我們將能夠銷售所有這些庫存。因此，我們對我們今天的立場感覺良好，Toshiya。

(Operator Instructions) Your next question comes from the line of William Stein with Truist Securities.

（操作員說明）你的下一個問題來自 William Stein 和 Truist Securities 的專線。

To what degree are extended lead times that I'm sure you're still experiencing some of those and component shortages influencing your ability to procure on the system side of the business and that's affecting revenue? Is that really the -- is it still a prevailing trend at all? If so, to what degree? Or is that really reverted? You mentioned IT spend in Americas is weak. So I'm wondering how that's netting out.

交貨時間延長到什麼程度，我確定您仍然遇到其中一些和組件短缺影響您在業務系統方面採購的能力，這會影響收入？這真的是——它仍然是一個普遍的趨勢嗎？如果是這樣，到什麼程度？還是真的恢復了？您提到美洲的 IT 支出疲軟。所以我想知道這是怎麼計算出來的。

Yes. No, sure thing, Will. So you're right. There is an indirect connection between what happens upstream in the semiconductor market versus what eventually materializes downstream in the systems world. .

是的。不，當然，威爾。所以你是對的。半導體市場上游發生的事情與系統世界下游最終實現的事情之間存在間接聯繫。 .

I would say, for the most part, as it pertains to compute and storage, we've seen the bigger parts of our backlog flush. The worst of that situation has certainly improved. There's still some normalization to occur in the systems space, but by and large, it's certainly better than it was a couple of 3 quarters ago. And we're through most of the aged backlog, if you will.

我想說的是，在大多數情況下，因為它與計算和存儲有關，我們已經看到了積壓工作的更大部分。最糟糕的情況肯定有所改善。系統空間中仍有一些正常化，但總的來說，它肯定比三個季度前更好。如果您願意的話，我們已經解決了大部分陳舊的積壓工作。

More generally, in semiconductor, you're right, lead times have improved, but they're still not yet back to pre-pandemic levels. And the improvement has been fairly broad-based, but there's still a few categories out there that, I would say, are highly constrained, and that does create challenges for making sure we serve the delinquent demand first as best as possible.

更一般地說，在半導體領域，你是對的，交貨時間有所改善，但仍未恢復到大流行前的水平。這種改進的基礎相當廣泛，但我想說，仍有一些類別受到高度限制，這確實給確保我們盡可能首先滿足拖欠需求帶來了挑戰。

Obviously, if things had fully normalized, we wouldn't still have such a sizable delinquent backlog. But as it pertains to our systems business, you can assume that the worst of that headwind is behind us.

顯然，如果事情完全正常化，我們就不會仍然有如此龐大的拖欠積壓。但由於它與我們的系統業務有關，您可以假設最糟糕的逆風已經過去。

Great. And as a follow-up, I'm hoping you can talk about linearity in the quarter. I know historically, we've tended to ask you and even component companies and semis as well about order linearity. But given the way the buyers, I think, are behaving these days, it feels like the backlogs are so robust. It's maybe more relevant to talk about linearity of cancels and pushouts. Can you talk about how that is trending, whether that's stable or accelerating or whatever that is doing?

偉大的。作為後續行動，我希望你能談談本季度的線性度。我知道從歷史上看，我們傾向於詢問您，甚至組件公司和半成品公司以及訂單線性度。但我認為，考慮到買家這些天的行為方式，感覺積壓情況非常嚴重。談論取消和推出的線性可能更相關。你能談談它的趨勢如何，是穩定的還是加速的或者正在做什麼？

Yes. Sure thing. So, you're right that if you -- in more normal times, linearity is maybe a more relevant question, but given the size of our backlog, and again, we've been giving visibility to demand in multiple quarters out, right. Well beyond the normal horizon that we typically get visibility to.

是的。當然可以。所以，你是對的，如果你 - 在更正常的時期，線性可能是一個更相關的問題，但考慮到我們積壓的規模，而且我們一直在多個季度提供需求可見性，對吧。遠遠超出了我們通常能看到的正常視野。

So book-to-bill has then become a little tougher to manage as predictably as you might in the past. So again, remember what I said, the book-to-bills are not eroding as we manage that backlog even including the rescheduling work we do. And I would just reiterate, while there is rescheduling activity, the cancellation levels are very modest and they have not accelerated since we saw signs of them in the latter part of last year.

因此，從預訂到出貨變得像過去一樣難以管理。因此，再次記住我說過的話，在我們管理積壓工作時，訂單到賬單並沒有減少，甚至包括我們所做的重新安排工作。我只想重申，雖然有重新安排活動，但取消水平非常適中，自從我們在去年下半年看到取消活動的跡像以來，取消活動並沒有加速。

And we have no further questions at this time. I'll turn the call back to Anthony for any closing remarks.

我們現在沒有其他問題了。我會把電話轉回給安東尼，聽取任何結束語。

Thank you, Regina, and thank you all for joining today's call. We look forward to meeting you at upcoming conferences and roadshows. Have a good day.

謝謝你，里賈納，感謝大家參加今天的電話會議。我們期待在即將舉行的會議和路演中與您會面。祝你有美好的一天。

Ladies and gentlemen, that will conclude today's call. Thank you all for joining. You may now disconnect.

女士們，先生們，今天的電話會議到此結束。謝謝大家的加入。您現在可以斷開連接。