ATS Corp (ATS) 2011 Q1 法說會逐字稿

Good morning, ladies and gentlemen. Welcome to the ATS Automation first quarter conference call. I would like to remind you that this conference call is being recorded on Wednesday, August 4, 2010, at 10:00 AM Eastern time. (Operator instructions)

早安，女士們，先生們。歡迎參加 ATS Automation 第一季電話會議。我想提醒您，本次電話會議的錄音時間為東部時間 2010 年 8 月 4 日星期三上午 10:00。 （操作員說明）

I would now like to turn the call over to Stewart McCuaig, Vice President, General Counsel of ATS. Please go ahead.

我現在想將電話轉給 ATS 副總裁兼總法律顧問 Stewart McCuaig。請繼續。

Thanks, Operator, and good morning, everyone. Your main hosts today are Anthony Caputo, Chief Executive Officer of ATS, and Maria Perrella, Chief Financial Officer.

謝謝接線員，大家早安。今天的主要主持人是 ATS 執行長 Anthony Caputo 和財務長 Maria Perrella。

Before we begin, I am required to provide the following statement respecting forward-looking information, which is made on behalf of ATS and all of its representatives on this call.

在我們開始之前，我需要提供以下有關前瞻性資訊的聲明，該聲明是代表 ATS 及其所有代表在本次電話會議上做出的。

The oral statements made on this call will contain forward-looking information. The actual results could differ materially from a conclusion, forecast, or projection in the forward-looking information.

本次電話會議所做的口頭陳述將包含前瞻性資訊。實際結果可能與前瞻性資訊中的結論、預測或預測有重大差異。

Certain material factors or assumptions were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking information. Additional information about the material factors that could cause actual results to differ materially from the conclusion, forecast, or projection in the forward-looking information and the material factors or assumptions that were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking information, are contained in ATS' filings with Canadian provincial securities regulators.

前瞻性資訊中反映的某些重大因素或假設被應用於得出結論或做出預測或預測。有關可能導致實際結果與前瞻性資訊中的結論、預測或預測存在重大差異的重要因素的其他信息，以及在得出結論或做出預測或預測時所應用的重要因素或假設，如這些前瞻性資訊包含在ATS 向加拿大省級證券監管機構提交的文件中。

Now it's my pleasure to turn the call over to Anthony.

現在我很高興將電話轉給安東尼。

Thank you. Good morning, ladies and gentlemen. I'm assuming you've seen our press release. Maria will review some of the financial highlights in a few minutes.

謝謝。早安，女士們，先生們。我假設您已經看過我們的新聞稿。瑪麗亞將在幾分鐘內回顧一些財務要點。

In the first quarter, we continued to experience challenging market conditions, which have negatively impacted orders and revenues in both ASG and Photowatt. Notwithstanding the market challenges, ASG operating results were strong, while Photowatt results were at break-even.

第一季度，我們繼續面臨充滿挑戰的市場環境，這對 ASG 和 Photowatt 的訂單和收入產生了負面影響。儘管面臨市場挑戰，ASG 的經營業績仍然強勁，而 Photowatt 的業績則實現了收支平衡。

Today I will update you on our progress in ASG, including our integration efforts with Sortimat, progress in Photowatt and our plans for separation, what we're seeing in our markets and our response, and the way forward.

今天，我將向您介紹我們在 ASG 方面的最新進展，包括我們與 Sortimat 的整合工作、Photowatt 的進展和我們的分離計劃、我們在市場中看到的情況和我們的反應以及未來的方向。

On ASG, lower bookings in the quarter and low backlog entry in Q1 had a negative impact on our revenues. Order bookings in the first quarter remain soft at CAD85 million. As I've noted previously, I believe the bookings deterioration we have experienced has leveled off. However, we have not yet returned to growth.

在 ASG 方面，本季預訂量下降和第一季積壓訂單量較低對我們的營收產生了負面影響。第一季的訂單預訂量仍然疲軟，為 8,500 萬加元。正如我之前指出的，我相信我們所經歷的預訂惡化已經趨於平穩。然而，我們尚未恢復成長。

Despite the decline in revenues, we were able to maintain our operating margins at 15%. The fixes we implemented through the first phase of our value creation plan continue to serve us well. Improvements in leadership, program management, supply chain, number of divisions, and other cost reductions all contributed to strong operating margins.

儘管收入下降，我們仍能將營業利潤率維持在 15%。我們透過價值創造計畫第一階段實施的修復措施繼續為我們提供良好服務。領導力、專案管理、供應鏈、部門數量的改進以及其他成本的降低都促成了強勁的營業利潤。

Our programs are continuing to perform well and drive our strong margin performance. We have now eliminated or have definitive courses of action to eliminate almost all of our legacy RED programs. However, as expected, with the acquisition of Sortimat, we have taken on, by our definition, a number of new RED programs.

我們的計劃繼續表現良好，並推動我們強勁的利潤表現。我們現在已經消除或已經制定了明確的行動方案來消除幾乎所有遺留的 RED 項目。然而，正如預期的那樣，隨著對 Sortimat 的收購，根據我們的定義，我們已經開展了許多新的 RED 專案。

As I noted previously, integration efforts are now underway. We have deployed a number of expats from our Canadian operations to lead in the application of ATS best practices, command and control, program management, and approach to market. I expect this will positively impact Sortimat's programs, however until Sortimat is fully integrated, current operating margins in ASG will be negatively impacted.

正如我之前指出的，整合工作正在進行中。我們從加拿大業務中部署了許多外籍人員來領導 ATS 最佳實踐、指揮和控制、專案管理和市場方法的應用。我預計這將對 Sortimat 的計劃產生積極影響，但在 Sortimat 完全整合之前，ASG 目前的營運利潤將受到負面影響。

As we proceed with the integration of Sortimat, I expect both Companies will benefit from combined supply chain efficiencies, improved concepting and program management processes, shared best practices, and business systems.

隨著我們繼續整合 Sortimat，我預計兩家公司都將受益於合併的供應鏈效率、改進的概念和專案管理流程、共享的最佳實踐和業務系統。

As I announced last quarter, we have officially launched our Life Sciences group. Hans Baumtrog, the former CEO of Sortimat, has been appointed as our Senior Vice President with responsibility to lead this group.

正如我上季度宣布的那樣，我們正式成立了生命科學部門。 Sortimat 前執行長 Hans Baumtrog 已被任命為我們的高級副總裁，負責領導團隊。

As we continue to develop critical mass to serve other markets, we will -- we are also organizing our other divisions into their appropriate groups, products, services, transportation, energy, and consumer products and electronics. This structure and our strong organization and business processes will facilitate the integration of new companies in the future and allow us to align them into their appropriate functional and industry groups.

隨著我們繼續發展關鍵規模來服務其他市場，我們也將—我們也將把我們的其他部門組織成適當的群組、產品、服務、運輸、能源、消費品和電子產品。這種結構以及我們強大的組織和業務流程將促進未來新公司的整合，並使我們能夠將它們納入適當的職能和行業群體。

On Photowatt, megawatts sold increased by 37% compared to a year ago, reflecting improved demand. Recall in Q1 last year, we transitioned production to 100% polysilicon products. Notwithstanding higher volumes, our revenues were negatively impacted by lower foreign exchange translation rates to a lesser extent, lower ESPs.

在 Photowatt 上，銷量比一年前增加了 37%，反映出需求的改善。回想一下，去年第一季度，我們將生產轉向 100% 多晶矽產品。儘管交易量有所增加，但我們的收入受到較低的外匯兌換率和較低的 ESP 的負面影響（較小程度）。

During the quarter, we began the process of liquidating inventory we wrote down in the fourth quarter. For the quarter, Photowatt's operating margin was negative 1%. Lower ESPs and incremental costs at Photowatt Ontario impacted Photowatt profitability. However, the full impact was mitigated through our cost per watt reduction plan. On this plan, Photowatt made modest gains in cell efficiency during the quarter. In addition, scrap rates were reduced, resulting in higher throughput and lower overall costs.

在本季度，我們開始清算第四季減記的庫存。該季度，Photowatt 的營業利潤率為負 1%。 Photowatt Ontario 較低的 ESP 和增量成本影響了 Photowatt 的獲利能力。然而，我們的每瓦成本降低計畫減輕了全部影響。根據這項計劃，Photowatt 在本季的電池效率方面取得了小幅提升。此外，廢品率也降低了，從而提高了產量並降低了整體成本。

We are continuing to identify opportunities to reduce our cost base. During Q1 we transitioned our cell product to larger 150- and 156-millimeter cells, eliminating production of our 125-millimeter cells. I expect this will result in further cost per watt efficiencies and improved product offering.

我們正在繼續尋找降低成本基礎的機會。在第一季度，我們將電池產品轉向更大的 150 毫米和 156 毫米電池，從而取消了 125 毫米電池的生產。我預計這將進一步提高每瓦成本效率並改善產品供應。

At Photowatt Ontario, we began ramping up our 100-megawatt module line. As I have noted before, this line was designed to have its capacity expanded beyond 100 megawatts in order to meet increased levels of demand. Our first Ontario built modules came off the line in May.

在 Photowatt Ontario，我們開始擴大我們的 100 兆瓦模組生產線。正如我之前指出的，這條生產線的設計目標是將其容量擴展到 100 兆瓦以上，以滿足不斷增長的需求水準。我們的第一個安大略省建造的模組於五月下線。

As I noted last quarter, we received notification of conditional feed-in tariff approvals totaling approximately 65 megawatts related to large scale renewable energy applications made by a project JV in which Photowatt holds 50% interest. Modules for these projects will be built in our Cambridge line.

正如我上季度所指出的，我們收到了總計約 65 兆瓦的有條件上網電價批准通知，涉及 Photowatt 持有 50% 權益的項目合資企業進行的大規模可再生能源應用。這些項目的模組將在我們的劍橋生產線中建構。

We are continuing to work with industry partners to build our pipeline in Ontario. To date we have signed a number of developer agreements under which Photowatt Ontario will supply modules into solar installation projects. The developers are now in the process of obtaining conditional fit approvals with the Ontario Power Authority. We are also continuing to quote on a number of additional module sales opportunities and system agreements.

我們將繼續與行業合作夥伴合作，在安大略省建造我們的管道。迄今為止，我們已經簽署了多項開發商協議，根據這些協議，Photowatt Ontario 將為太陽能安裝專案提供模組。開發商目前正在獲得安大略電力局的有條件安裝批准。我們也繼續對一些額外的模組銷售機會和系統協議進行報價。

On separation, we are working with our independent advisors to assist us in identifying and evaluating strategic alternatives. I will continue to update you on this initiative as we progress. However, I caution you that conditions in the solar and capital markets will be a consideration in the timing and form of separation.

關於分離，我們正在與獨立顧問合作，幫助我們確定和評估策略替代方案。隨著我們的進展，我將繼續向您通報這項舉措的最新情況。不過，我提醒您，太陽能和資本市場的狀況將是分離時間和形式的考量。

Turning to our balance sheet, our financial position remains strong. During Q1 we generated CAD6 million in cash from operations. Our cash position at the end of the quarter was CAD152 million. Our strong cash position and credit facilities provide us with substantial flexibility to pursue our growth strategies.

談到我們的資產負債表，我們的財務狀況仍然強勁。第一季度，我們透過營運產生了 600 萬加元現金。截至本季末，我們的現金部位為 1.52 億加元。我們強大的現金狀況和信貸便利性為我們實現成長策略提供了極大的靈活性。

At this point, I'd like to make a few comments on what we're seeing in the market. In ASG, as I noted, we are emerging from the historically low trend in our bookings. We are seeing an increase in proposal activity and an increase in the number of large opportunities in the market. There is increased activity in all of our markets, particularly in life sciences, energy, and transportation. However, our customers are continuing to exercise caution and delay some of their investment decisions. As a result, the increase in front end activity is not yet translating into order bookings, which remain volatile.

此刻，我想就我們在市場上看到的情況發表一些評論。正如我所指出的，在 ASG，我們的預訂量正在擺脫歷史低點趨勢。我們看到提案活動增加，市場上的大型機會數量也有所增加。我們所有市場的活動都在增加，特別是在生命科學、能源和運輸領域。然而，我們的客戶繼續保持謹慎態度並推遲他們的一些投資決定。因此，前端活動的增加尚未轉化為訂單預訂，訂單預訂仍然不穩定。

That notwithstanding, our first five-week bookings were CAD48 million. Last quarter, we formally launched our new global sales and marketing structure. Led by Patrice Pelletier, we have organized our sales and marketing group to align with our target markets. Specifically we have appointed segment leads to lead sales efforts in each of our six functional groups, product services, life sciences, transportation, energy, and consumer products, and electronics. And we have established and assigned global accounts to specific account managers within each of our segment groups.

儘管如此，我們前五週的預訂量達到了 4,800 萬加元。上季度，我們正式啟動了新的全球銷售和行銷結構。在 Patrice Pelletier 的領導下，我們組織了銷售和行銷團隊，以適應我們的目標市場。具體來說，我們已指定細分市場負責人來領導我們六個職能部門、產品服務、生命科學、運輸、能源、消費品和電子產品的銷售工作。我們已經建立了全球帳戶並將其分配給每個細分市場組內的特定客戶經理。

As I said, these changes will align our global sales and marketing group with our customers, which have a number of benefits including improve and align our industry experience and expertise, improve our product and service offering, and support expansion and growth by leveraging our geographic reach and our industry market expertise. Our approach to market is centered around capture teams, each led by an account manager and guided by its participants.

正如我所說，這些變化將使我們的全球銷售和行銷團隊與我們的客戶保持一致，這有很多好處，包括改善和調整我們的行業經驗和專業知識，改進我們的產品和服務，並利用我們的地理優勢支持擴張和成長。影響力和我們的行業市場專業知識。我們的市場方法以捕獲團隊為中心，每個團隊都由一名客戶經理領導並由其參與者指導。

At Photowatt, our pipeline is growing. In France, we have secured sales for a significant portion of our capacity over the next two quarters. While this is positive, I caution it may not be sustainable as feed-in tariff reductions are implemented in Germany and France this year.

在 Photowatt，我們的產品線正在不斷成長。在法國，我們已經確保了未來兩季大部分產能的銷售。雖然這是正面的，但我警告說，由於德國和法國今年實施了上網電價補貼削減，這種情況可能無法持續。

In Ontario, our pipeline is growing and as I discussed, we are considering actions to increase our capacity directly and indirectly to meet this demand.

在安大略省，我們的管道正在成長，正如我所討論的，我們正在考慮採取行動直接和間接增加我們的產能以滿足這一需求。

Going forward, our focus is on separation and growth. As industry conditions improve, we are well positioned operationally and financially to advance our value creation strategy. In ASG, we will continue to consolidate the space, expand our offering, and improve our market position. We are active on the M&A front, and continue to target companies based on our M&A framework. That is the ability to bring market or technology leadership, scale, or opportunity brought on by the economic environment.

展望未來，我們的重點是分離和成長。隨著產業狀況的改善，我們在營運和財務上處於有利地位，可以推進我們的價值創造策略。在 ASG，我們將繼續鞏固空間，擴大我們的產品範圍，並提高我們的市場地位。我們積極參與併購，並繼續根據我們的併購框架瞄準公司。這是帶來市場或技術領先地位、規模或經濟環境所帶來的機會的能力。

Financially, targets are being reviewed for their potential to add accretive earnings to our current operations. Currently, we are in discussions with a number of companies.

在財務方面，正在審查目標是否有可能為我們目前的業務增加增值收益。目前，我們正在與多家公司進行洽談。

As we continue to execute our M&A strategy and build critical mass in targeted areas, we will further align our operating divisions into our new organizational structure. However, we will not substitute acquisitions for organic growth. This remains the key strategic priority for ASG.

隨著我們繼續執行併購策略並在目標領域建立足夠的規模，我們將進一步調整我們的營運部門以適應新的組織結構。然而，我們不會用收購來取代有機成長。這仍然是 ASG 的關鍵策略重點。

At Photowatt, we are moving forward with our plans to separate Photowatt from ATS. In the meantime, we will continue to operate Photowatt and take necessary actions to ensure it remains cost competitive. In previous quarters, I talked about the possibility of a plan to reduce Photowatt's cost structure, which may cost approximately CAD10 million. We are now proceeding with this plan and I will provide you with details in due course.

在 Photowatt，我們正在推動將 Photowatt 從 ATS 中分離出來的計劃。同時，我們將繼續營運 Photowatt 並採取必要行動以確保其保持成本競爭力。在前幾季中，我談到了降低Photowatt成本結構的計劃的可能性，該計劃可能花費約1000萬加元。我們現在正在推進這個計劃，我將在適當的時候向你提供詳細資訊。

In summary, our fixes have taken hold. Our strategic focus is now on growth. As we move forward, we will achieve this plan by leveraging our core competencies, leadership, business processing performance. Specifically, we have the ability to fix businesses when required. Our operations have been reorganized by capability and segment. Our global sales and marketing group has been reorganized by global segments and global accounts. Our leadership and business processes are sound. Our strategy remains to separate Photowatt, grow organically, and acquire other companies, which will then be integrated into our ASG structure and business process.

總而言之，我們的修復已經生效。我們現在的策略重點是成長。隨著我們的前進，我們將利用我們的核心能力、領導力、業務處理績效來實現這項計劃。具體來說，我們有能力在需要時修復業務。我們的業務已按能力和部門進行了重組。我們的全球銷售和行銷團隊已按全球部門和全球客戶進行了重組。我們的領導和業務流程是健全的。我們的策略仍然是分離 Photowatt、有機成長並收購其他公司，然後將其整合到我們的 ASG 結構和業務流程中。

At this point, I'd like to turn the call over to Maria.

現在，我想把電話轉給瑪麗亞。

Thank you, Anthony, and good morning, ladies and gentlemen. My comments today will focus on the performance of our two segments, our consolidated results, and our balance sheet.

謝謝安東尼，女士們先生們早安。我今天的評論將重點放在我們兩個部門的績效、綜合績效和資產負債表。

First, some initial observations. In the quarter, results were relatively stable and similar to the fourth quarter's normalized results. Bookings, backlog, revenue, EBIT, and cash flows were all impacted by the consolidation of Sortimat results for June. We saw our cash decrease as the Sortimat acquisition closed and approximately CAD49 million was paid on June 1, 2010 with another CAD1 million paid in early Q2. As this was the first month as part of ATS, the purchase price allocation is estimated. We will finalize it over the course of the year and therefore it is subject to change.

首先，一些初步觀察。本季的業績相對穩定，與第四季的正常化業績相似。預訂量、積壓訂單、收入、息稅前利潤和現金流量均受到 Sortimat 6 月業績合併的影響。隨著 Sortimat 收購的完成，我們的現金減少了，並於 2010 年 6 月 1 日支付了約 4,900 萬加元，並在第二季初支付了另外 100 萬加元。由於這是 ATS 的第一個月，因此採購價格分配是估計的。我們將在一年內完成它，因此可能會發生變化。

Integration of Sortimat includes business processes, policies, the implementation of our command and control structure, review of leadership, and transition from German to Canadian accounting standards, all of which are underway.

Sortimat 的整合包括業務流程、政策、指揮和控制結構的實施、領導層審查以及從德國會計標準向加拿大會計標準的過渡，所有這些都正在進行中。

On an unrelated matter, during the quarter we found that a certain pension obligation relating back to the acquisition of the Switzerland operation in 1998 had been incorrectly recorded. As a result, an obligation of CAD2 million had built up over approximately 12 years. Q1 results reflect this adjustment, which clears up the deficient pension liability to opening retained earnings for accounting purposes. There was no deficiency from a statutory standpoint.

在一個不相關的問題上，本季我們發現與 1998 年收購瑞士業務相關的某些退休金義務被錯誤記錄。結果，在大約 12 年的時間內累積了 200 萬加元的債務。第一季的業績反映了這一調整，該調整消除了出於會計目的開放留存收益的退休金負債不足的情況。從法定的角度來看，不存在缺陷。

Now some comments on our two segments.

現在對我們的兩個部分進行一些評論。

First on ASG. The impact on revenues from our low order bookings continues to be felt as first quarter ASG revenues of CAD107 million were 7% lower than Q1 of last year. There was however, a sequential increase as Q1 revenues were CAD15 million or 16% higher than in Q4 with Sortimat adding an incremental CAD5.4 million in June.

首先是ASG。我們繼續感受到低訂單預訂對營收的影響，第一季 ASG 營收為 1.07 億加元，比去年第一季下降 7%。然而，第一季的營收季增了 1,500 萬加元，比第四季高出 16%，而 Sortimat 6 月份的營收增加了 540 萬加元。

In Q1, our ASG performance and operating margin of 15%, which includes Sortimat continued to be strong and was consistent with Q4 and Q3 normalized operating margins of 15.9% and 13.2% respectively.

第一季度，我們的 ASG 業績和營業利潤率為 15%（其中包括 Sortimat），繼續表現強勁，與第四季度和第三季度分別為 15.9% 和 13.2% 的標準化營業利潤率一致。

Order bookings dropped to CAD85 million, our first quarter-over-quarter decrease since our low of CAD71 million of bookings in Q2. The market continues to be difficult. I said we expect to continue to lag the general economic recovery and this quarter demonstrates this.

訂單預訂量降至 8,500 萬加元，這是自第二季預訂量低至 7,100 萬加元以來首次出現季度環比下降。市場依然困難重重。我說過，我們預計將繼續落後於總體經濟復甦，本季就證明了這一點。

We see activity in the pipeline, however it will take a few months to turn these opportunities into orders. Customers seem to be ramping up and opportunities have higher values, however decision time is taking longer.

我們看到正在醞釀中的活動，但將這些機會轉化為訂單需要幾個月的時間。客戶數量似乎在增加，機會的價值也更高，但決策時間卻更長。

Overall, we continue to be pleased with the ASG earnings margin, even though our bookings are still soft. We expect this booking weakness will continue to be the case for the next few quarters. ASG backlog increased by CAD6 million from Q4 with the addition of incremental backlog of CAD28 million from Sortimat.

總體而言，儘管我們的預訂量仍然疲軟，但我們仍然對 ASG 的利潤率感到滿意。我們預計未來幾季預訂量將持續疲軟。 ASG 積壓訂單比第四季增加了 600 萬加元，加上 Sortimat 增加的 2,800 萬加元積壓訂單。

Next, let's look at Photowatt. There was no significant change in Photowatt's financial results from normalized prior quarter performance with Q4 adjusted for the inventory write down.

接下來我們來看看Photowatt。經過第四季庫存減記調整後，Photowatt 的財務表現與正常化的上一季業績相比沒有顯著變化。

In Q1, CAD7.1 million of revenue was generated from the sale of part of the previously written down raw material inventory, which was sold for approximately its net book value. Cash for this transaction was collected in early Q2.

第一季度，710 萬加元的收入來自於出售部分先前減記的原材料庫存，該庫存的出售價格約為帳面淨值。該交易的現金已於第二季初收取。

In Q1, megawatts sold increased 37% to 11.4 megawatts compared to the first quarter last year. Although 10% lower than the 12.7 megawatts sold in Q4, it represents a significant improvement from last year's Q1 low of 8.3 megawatts.

第一季的銷售量比去年第一季成長了 37%，達到 11.4 兆瓦。儘管比第四季銷售的 12.7 兆瓦低了 10%，但與去年第一季 8.3 兆瓦的低點相比有了顯著改善。

Average selling prices for modules declined slightly on a year-over-year basis. Based on the announced reductions in feed-in tariffs in several jurisdictions in Europe, and additional expected tariff reductions, some further decline is expected.

組件平均售價較去年小幅下降。根據歐洲多個司法管轄區宣布的上網電價削減以及預期的額外關稅削減，預計還會進一步下降。

In the first quarter, excluding the sale of inventory, Photowatt revenues decreased to CAD41.7 million, down from CAD48.6 million in Q4. System sales are holding at CAD26.2 million in Q1 fiscal '11, consistent with revenues of CAD25.1 million in Q4 fiscal '10, and CAD24.8 million in Q1 last year.

第一季度，不包括庫存銷售，Photowatt 收入下降至 4,170 萬加元，低於第四季度的 4,860 萬加元。 2011 財年第一季的系統銷售額為 2,620 萬加元，與 2010 年第四季的收入 2,510 萬加元和去年第一季的收入 2,480 萬加元一致。

Higher megawatt sales were offset by the impact of the weak euro relative to the Canadian dollar as compared to last year.

與去年相比，兆瓦銷量的增加被歐元相對加幣疲軟的影響所抵消。

Looking at operating results, Photowatt's operating loss of CAD100,000 compared to an operating loss of CAD7.5 million in the prior year. Prior year Q1 included a CAD4.7 million warranty charge. Excluding warranty, last year's Q1 generated a negative 7% margin.

從經營績效來看，Photowatt 的營運虧損為 10 萬加元，而前一年的營運虧損為 750 萬加元。去年第一季包括 470 萬加元的保固費用。不包括保固在內，去年第一季的利潤率為負 7%。

Included in Q1 results this year is approximately CAD500,000 of costs related to Photowatt Ontario, which did not exist last year. Despite difficult market conditions, Photowatt continues to operate close to breakeven.

今年第一季的業績中包含了約 50 萬加元與 Photowatt Ontario 相關的成本，而去年這一成本並不存在。儘管市場條件困難，Photowatt 的營運仍接近收支平衡。

Now a few consolidated ATS highlights.

現在有一些全面的 ATS 亮點。

In the first quarter, we generated cash from operations of CAD5.9 million despite CAD8 million, which was invested in non-cash operating working capital. At the end of the first quarter, our net cash position was CAD84 million compared to CAD148 million last quarter or a decrease of CAD65 million. Cash in the quarter was primarily impacted by the CAD49 million acquisition of Sortimat, approximately CAD10.5 million in CapEx spending, and the buildup of inventory at Photowatt in preparation for the August shutdown.

第一季度，儘管有 800 萬加元投資於非現金營運營運資金，但我們仍從營運中產生了 590 萬加元現金。第一季末，我們的淨現金部位為 8,400 萬加元，比上季的 1.48 億加元減少了 6,500 萬加元。本季現金主要受到 4,900 萬加元收購 Sortimat、約 1,050 萬加元資本支出以及 Photowatt 為 8 月份停產做準備而積累庫存的影響。

We have continued to maintain our strong financial position despite the difficult market conditions. This will allow us to pursue our growth strategy beyond the acquisition of Sortimat.

儘管市場條件困難，我們仍持續保持強勁的財務狀況。這將使我們能夠在收購 Sortimat 之外繼續推行我們的成長策略。

We are starting to see the impact of acquisition accounting with the addition of Sortimat. In ASG, operating results, depending on the acquisition deal structure, intangibles, and related amortization, and potential future payments as examples, will impact earnings and margins going forward as amounts will be expensed in operating earnings rather than remaining on the balance sheet as part of the purchase price.

我們開始看到增加 Sortimat 後收購會計的影響。在ASG 中，營運績效（取決於收購交易結構、無形資產和相關攤銷以及潛在的未來付款）將影響未來的收益和利潤率，因為金額將計入營運收益，而不是保留在資產負債表上的購買價格。

Turning to earnings, earnings per share were CAD0.07 in the first quarter, compared to CAD0.04 in the fourth quarter, and CAD0.00 in the first quarter of last year.

談到獲利，第一季每股收益為0.07加元，而第四季為0.04加元，去年第一季為0.00加元。

In the first quarter, the effective tax rate of 30% is more indicative of statutory rates as was expected and noted last quarter.

正如上季所預期和指出的那樣，第一季 30% 的有效稅率更能反映法定稅率。

As a reminder, we will benefit from a cash perspective as the future tax assets recognized last quarter will be used to reduce cash taxes payable in the next few quarters -- in the next few years.

提醒一下，我們將從現金角度受益，因為上季度確認的未來稅收資產將用於減少未來幾季（未來幾年）的應付現金稅。

In summary, for ASG market conditions continue to negatively impact order bookings and revenues. We have a strong operating base, but our absolute EBIT dollars will continue to be impacted by our low volume.

總而言之，對於 ASG 來說，市場狀況持續對訂單預訂和收入產生負面影響。我們擁有強大的營運基礎，但我們的絕對息稅前利潤將繼續受到低銷售量的影響。

Also going forward, Sortimat's current lower EBIT margins than the ASG margins, combined with the EUR6.6 million potential payouts over the next 2.5 years will impact consolidated ASG operating margins.

此外，展望未來，Sortimat 目前的息稅前利潤率低於 ASG 的利潤率，加上未來 2.5 年 660 萬歐元的潛在支出，將影響 ASG 的綜合營運利潤率。

In Photowatt, we are building our pipeline in both France and Ontario, however with uncertainty in European demand and the decrease in Photowatt's average selling prices, it is difficult to forecast our near-term financial performance. We have a strong cash position and a sound balance sheet, with the ability to pursue our growth strategies.

在 Photowatt 中，我們正在法國和安大略省建造管道，但由於歐洲需求的不確定性以及 Photowatt 平均售價的下降，很難預測我們的近期財務業績。我們擁有強大的現金狀況和健全的資產負債表，有能力實施我們的成長策略。

Now, we'd like to open the call to your questions. Operator, could you please provide instructions to our listeners? Thank you.

現在，我們想開始回答您的問題。接線員，您能給我們的聽眾一些指示嗎？謝謝。

(Operator instructions) Your first question comes from Michael Willemse from CIBC. Please go ahead.

（操作員說明）您的第一個問題來自 CIBC 的 Michael Willemse。請繼續。

Great, thank you for taking my call. Tony, just first question, I think this is the first time I've seen the capacity mentioned for Photowatt Ontario operations, 100 megawatts. This is all module-making capacity I'm assuming. And do you think you cans start shipping this quarter like actual book some sales? And how quickly do you think you could get to that 100-megawatt capacity?

太好了，謝謝您接聽我的電話。東尼，第一個問題，我想這是我第一次看到提及的 Photowatt Ontario 營運容量，100 兆瓦。這就是我假設的所有模組製作能力。您認為您可以像實際預訂一些銷售一樣在本季度開始發貨嗎？您認為多快可以達到 100 兆瓦的容量？

Hi Michael. On the 100-megawatt capacity, so the line is 100 megawatts. We are in ramp up production, as you would imagine it's necessary to make sure everything is working properly and so on and so forth. And the configuration of the line is such that it could be made bigger if necessary. So that's the module capacity answer.

嗨邁克爾。就100兆瓦的容量來說，所以線路是100兆瓦。我們正在提高產量，正如您想像的那樣，有必要確保一切正常工作等等。而生產線的配置是這樣的，如果需要的話可以做得更大。這就是模組容量的答案。

The offering that we have in Ontario includes modules, includes balance of system, includes project development in some cases. So we're participating in all of the elements of the value chain, including modules.

我們在安大略省提供的產品包括模組，包括系統平衡，在某些情況下還包括專案開發。因此，我們正在參與價值鏈的所有要素，包括模組。

On the question of revenue, I think Maria's answered that before and ask her if she could just comment on it again.

關於收入問題，我想瑪麗亞之前已經回答過這個問題，並問她是否可以再次發表評論。

So on revenues, we expect to be able to start to shift in a quarter or so. And then as far as recognizing the revenues, it depends on what we are [spelling]. So -- and it won't yet be modules, but if it is project development, we will have a build-up of inventory on our balance sheet for a while until the project is completed. And then at that time, we would be able to recognize the revenues. And if it's modules, which will come a bit later, we would be able to start to recognize the revenue sooner.

因此，就收入而言，我們預計能夠在一個季度左右開始發生變化。然後就確認收入而言，這取決於我們的[拼字]。因此，它還不是模組，但如果是專案開發，我們的資產負債表上將累積一段時間的庫存，直到專案完成。到那時，我們就能夠確認收入。如果是模組（稍後推出），我們將能夠更快開始確認收入。

So right now we -- we'll be able to start to ship, as I said, in a quarter or so, but it might be a mix of revenue and just amounts being inventoried to our balance sheet.

所以現在我們 - 正如我所說，我們將能夠在一個季度左右開始發貨，但這可能是收入和庫存到我們資產負債表中的金額的混合。

Okay, so it sounds like initially a lot of the shipments are going to be for your own projects rather than third party projects?

好吧，聽起來最初很多發貨將用於您自己的項目而不是第三方項目？

I would say that's true.

我想說那是真的。

Okay. And then just, Maria, if you could clarify. You said there was a Swiss pension adjustment. Did that run through the income statement or just through retained earnings?

好的。然後，瑪麗亞，如果你能澄清一下的話。你說瑞士退休金有調整。這是貫穿損益表還是僅貫穿留存收益？

It ran just through retained earnings. So it related back to a liability that we took on about 12 years ago and because any one year would not have been a material adjustment, we didn't go back to restate our retained earnings or income in any one year, and therefore it's just on the opening balance sheet as of April 1, 2009.

它只透過留存收益來計算。因此，它與我們大約 12 年前承擔的負債有關，並且因為任何一年都不會是重大調整，所以我們沒有回去重述任何一年的留存收益或收入，因此這只是截至2009 年4 月1日的期初資產負債表。

Okay. And then on the tax rate, you mentioned it should be lower for the rest of the year. What kind of tax rate assumption should we use?

好的。關於稅率，您提到今年剩餘時間稅率應該較低。我們應該使用什麼樣的稅率假設？

So on the tax rate, I think I said we should expect the tax rate to be similar to what we had in Q1 or the statutory rate. So going forward, I expect to see about 30%.

因此，關於稅率，我想我說過我們應該預期稅率與第一季或法定稅率類似。因此，展望未來，我預計會達到 30% 左右。

Okay. Sorry, I missed that. Thank you. I'll get back in queue.

好的。抱歉，我錯過了。謝謝。我會回到隊列中。

You're welcome.

不客氣。

Your next question comes from David Tyerman from Canaccord Genuity. Please go ahead.

您的下一個問題來自 Canaccord Genuity 的 David Tyerman。請繼續。

Yes, good morning. Following up on the Photowatt Ontario questions, so how long do you think it will take to get the module facility running at the 100-megawatt level?

是的，早安。跟進 Photowatt Ontario 的問題，您認為組件設施需要多長時間才能運行在 100 兆瓦的水平？

The -- part of it is a function of ramping up not sooner than demand requires. And part of it is a function of assuring ourselves that from a procedural and quality point of view that the line is operational. But we're talking -- this is our choice and we're talking months not quarters or years or something.

其中一部分是不早於需求要求而增加的功能。其中一部分是為了確保我們自己從程式和品質的角度來看該生產線是可運行的。但我們正在談論——這是我們的選擇，我們正在談論幾個月而不是幾個季度或幾年或其他什麼。

Okay. And then on the profitability metrics for Photowatt Ontario, this is just a module operation, right? So would I assume the profitability metrics would be a lot lower than Photowatt France?

好的。然後，根據 Photowatt Ontario 的盈利指標，這只是一個模組運營，對吧？那麼我會認為獲利指標會比 Photowatt France 低很多嗎？

If I can just make a comment and then Maria will talk to the second half. So our offering in Ontario is developing projects and that would be true in the case of the JV that I talked about that has conditional fit awards of 65 megawatts. Through developer agreements, and I talked about developer agreements, and through let's say selling modules to third parties. So the purpose of the modules that we're making could go into any one or all of those types of activities.

如果我可以發表評論，然後瑪麗亞會談論下半場。因此，我們在安大略省的產品是開發項目，對於我談到的具有 65 兆瓦有條件安裝獎勵的合資企業來說，情況就是如此。透過開發者協議，我談到了開發者協議，以及透過向第三方銷售模組。因此，我們正在製作的模組的目的可以涉及任何一種或所有這些類型的活動。

On the second part of your question.

關於你問題的第二部分。

So on the profitability, then depending on the mix we would have, or the result would be different profitability levels. On projects we would expect to generate more profit than we would on selling modules and just overall for Ontario, our expectation today is to be more profitable than we are at Photowatt France.

因此，就獲利能力而言，取決於我們的組合，否則結果將是不同的獲利水平。在專案上，我們期望比銷售模組產生更多的利潤，就安大略省而言，我們今天的期望是比 Photowatt France 的利潤更高。

Okay, and by projects do you mean like consulting fees and things like that? Or is there something else in there? Or of project development?

好的，你所說的項目是指諮詢費之類的嗎？還是裡面還有別的東西？還是專案開發？

So the -- for instance in the case of the 65-megawatt conditional fits, those are with a JV in which the JV is performing -- is doing the project development, the ETC, the balances system, supplying the modules. In other words, the entire thing. So that is one type of relationship where essentially we're the prime contractor, so to speak in this case for a JV.

因此，例如，在 65 兆瓦有條件安裝的情況下，這些是與合資企業合作的，而合資企業正在其中進行專案開發、ETC、平衡系統、供應模組。換句話說，整件事情。因此，這是一種關係，本質上我們是主承包商，可以說是合資企業。

Another type of relationship is where we have relationships with developers where they are undertaking to develop the project and secure the fit contract. And then under those arrangements, we could supply EPC, we could supply modules, we could supply balance of system where they could do EPC and we could supply modules and balance of system. Or we could just supply modules. And then in a third case, independent companies doing what we're doing require Ontario content modules and they are coming to us and we have opportunities to sell modules in that regard, keeping in mind that of course there's a competitive environment too.

另一種類型的關係是我們與開發商建立關係，他們承諾開發專案並簽訂裝修合約。然後根據這些安排，我們可以提供 EPC，我們可以提供模組，我們可以提供系統的平衡，他們可以做 EPC，我們可以提供模組和系統的平衡。或者我們可以只提供模組。然後在第三種情況下，做我們正在做的事情的獨立公司需要安大略內容模組，他們來找我們，我們有機會銷售這方面的模組，請記住，當然也存在競爭環境。

Okay, that's helpful. Thank you.

好的，這很有幫助。謝謝。

Your next question comes from Marko Pencak from GMP Securities. Please go ahead.

您的下一個問題來自 GMP 證券公司的 Marko Pencak。請繼續。

Thank you. Good morning. I'd like to ask a question on the automation systems group. Your order intake for the current quarter seems to be very, very robust. So my question is are there any in large contracts that you've received thus far? Or is it a mix and if we extrapolate what we have for your prior quarters it would actually imply a much higher order intake rate for the September quarter?

謝謝。早安.我想問一個關於自動化系統組的問題。你們本季的訂單量似乎非常非常強勁。所以我的問題是，到目前為止你們已經收到大合約了嗎？或者它是一個混合體，如果我們推斷前幾季的情況，實際上意味著 9 月季度的訂單接收率要高得多？

Hi, Marko. There are no large contracts.

嗨，馬科。沒有大合約。

No, so no individual large contracts. I would just say though on average, or the average order intake for the CAD48 million is a little higher than what we've experienced in the past. So if we were in the CAD3 million range it might be higher than that. But no one individual large contract.

不，所以沒有個人大合約。我只想說，平均而言，4,800 萬加元的平均訂單量比我們過去經歷的要高一些。因此，如果我們在 300 萬加元的範圍內，它可能會更高。但沒有一個人大額簽約。

And then as far as the quarter goes, I think we've seen that if we extrapolate we kind of get to what we will end up for each quarter in terms of bookings.

就本季而言，我認為我們已經看到，如果我們進行推斷，我們可以得出每個季度的預訂量最終結果。

Well, so I mean that would imply almost a 40% sequential increase if the rate stays constant.

嗯，我的意思是，如果利率保持不變，這將意味著環比增長近 40%。

Over Q1.

超過第一季。

Yes.

是的。

Yes.

是的。

But back to the U and the B, I still think it's a U not a B. And I think the worst is over and I think things are getting better. [Okay] for the time.

但回到 U 和 B，我仍然認為這是 U 而不是 B。我認為最糟糕的情況已經過去，我認為情況正在好轉。 [好吧]暫時就這樣吧。

Okay. My second question on Photowatt. So I just wanted to understand what's happening here. You're taking your typical August shutdown but you're pre-building finished goods inventory in order to sustain your sales through the plant shutdown. Is that correct?

好的。我關於 Photowatt 的第二個問題。所以我只是想了解這裡發生了什麼事。您將進行典型的八月停工，但您要預先建立成品庫存，以便在工廠停工期間維持銷售。那是對的嗎？

Yes, that's correct.

對，那是正確的。

And so when you say that a significant portion of your capacity is sold for the next two quarters, how should we think about that? I mean are we talking sort of run rates that you experienced in the back half of fiscal 2010?

因此，當您說您的很大一部分產能將在接下來的兩個季度出售時，我們應該如何考慮？我的意思是，我們談論的是您在 2010 財年下半年經歷的運行率嗎？

Yes, that would be a good way to look at it.

是的，這將是一個很好的看待它的方式。

Okay. And finally and then I'll get back in queue. Just your -- maybe you could just provide some perspective on Sortimat I mean how it's been progressing, what has sort of been better than what you thought and what's been -- where there's more work than what you thought.

好的。最後我會回到隊列中。只是你的——也許你可以提供一些關於Sortimat 的觀點，我的意思是它是如何進展的，哪些方面比你想像的更好，哪些方面比你想像的要好——工作量比你想像的要多。

I think it's essentially what we thought. And we did a fairly thorough due diligence. And the principles of Sortimat, especially Hans was helpful in us understanding the Company. We have several people over at Sortimat. One guy from Cambridge runs the main division in Germany. Sortimat's CFO, quote/unquote is a person from here, Margaret, that worked for Maria. We have our program people training -- maybe wrong word -- on program management. They're subject to our sort of command and control and business process. Hans is integrated in more than one way with the objectives of this management team and the shareholders at large.

我認為這本質上就是我們的想法。我們做了相當徹底的盡職調查。 Sortimat 的原則，尤其是 Hans 的原則有助於我們了解公司。我們有幾個人在 Sortimat。一位來自劍橋的人負責德國的主要部門。 Sortimat 的財務官，引用/不引用是來自這裡的人，瑪格麗特，為瑪麗亞工作。我們對我們的專案人員進行專案管理方面的培訓——也許用詞錯誤。它們受我們的命令和控制以及業務流程的約束。漢斯以多種方式與該管理團隊和廣大股東的目標融為一體。

Great Company we thought, and great Company we think. Just tremendous opportunity. We have to deal with the systems from an accounting point of view. No surprises, negative or positive.

我們認為偉大的公司，我們認為偉大的公司。只是巨大的機會。我們必須從會計的角度來處理系統。沒有什麼意外，無論是消極的還是積極的。

Yes, so I would just add, and we said before it's not dissimilar from what ASG was like a couple of years ago. So we see -- not -- although Sortimat is in better shape. So we know what we have to do to improve the margins and we expect to get there over a period of time.

是的，所以我想補充一下，我們之前說過，這與 ASG 幾年前的情況沒有什麼不同。所以我們看到——不是——儘管 Sortimat 的狀況更好。因此，我們知道必須採取哪些措施來提高利潤率，並且我們希望在一段時間內能夠實現這一目標。

Sortimat is -- by our acquisition framework Sortimat is not a broken Company. Sortimat is a Company that in this particular case added technology, it added scale, it added market customers that -- a fairly strategic acquisition that I think we can improve and Sortimat can improve us.

根據我們的收購框架，Sortimat 並不是一家破產的公司。 Sortimat 是一家在這種特殊情況下增加了技術、增加了規模、增加了市場客戶的公司——這是一項相當具有戰略意義的收購，我認為我們可以改進它，Sortimat 也可以改進我們。

Great. Thank you very much.

偉大的。非常感謝。

Your next question comes from Mac Whale from Cormark Securities. Please go ahead.

您的下一個問題來自 Cormark Securities 的 Mac Whale。請繼續。

Hi. Maria, can you take us through how the balance sheet will evolve as you start to build these fit contracts. And I'm specifically wondering about how -- like will you book the 50% ownership in the projects and at what dollar per megawatt value is it -- should we be -- will we be close if we use what your average selling price is in Photowatt?

你好。瑪麗亞，您能否向我們介紹一下，當您開始製定這些合適的合約時，資產負債表將如何演變？我特別想知道，您會如何預訂項目 50% 的所有權，以及每兆瓦價值是多少美元，我們應該這樣做嗎？如果我們使用您的平均售價，我們會接近嗎？在光電瓦特？

So as far as the accounting goes, we would book the modules and project costs to our inventory. So we would start to see our inventory build. And as you said, 50% of the 64 or 65 megawatts that we've talked about now, the cost that we would use I don't think we provide that information, but you could just for a rough order of magnitude number use what we have at Photowatt.

因此，就會計而言，我們將模組和項目成本記入我們的庫存。因此，我們將開始看到我們的庫存增加。正如您所說，我們現在討論的 64 或 65 兆瓦的 50%，我們將使用的成本，我認為我們不會提供該信息，但您可以僅針對粗略的數量級使用什麼我們在 Photowatt 有。

And I would expect that to build over a period of eight to 10 months.

我預計這將在八到十個月的時間內完成。

So in eight to 10 months we use 100 megawatts at CAD4.00 to CAD5.00 a watt, that's a lot of money. I'm wondering how your -- you've been addressing the sort of working capital requirements. What should we be thinking in terms of how you fund that? Because I think elsewhere in the industry there's a lot of vendor financing and I don't think Photowatt really has the cash for that. So I'm -- can you take us through the sort of the total number of megawatts you would expect to have on the balance sheet in inventory out of that 65?

因此，在 8 到 10 個月內，我們以每瓦 4.00 至 5.00 加幣的價格使用 100 兆瓦，這是很多錢。我想知道你們是如何解決營運資金需求的。關於如何提供資金，我們該考慮什麼？因為我認為行業其他地方有很多供應商融資，但我不認為 Photowatt 真的有足夠的現金。那麼，您能否向我們介紹一下您預計資產負債表上的 65 兆瓦庫存總量是多少？

So out of the 65 we're 50% joint venture owners. So it would be half of that, so 32 megawatts. And then as far as the other -- the rest of the megawatts that we've talked about go we would be selling modules, so there we would just expect to turn those around quickly, get the revenue and cash.

因此，在這 65 家企業中，我們擁有 50% 的合資企業所有權。所以這將是一半，即 32 兆瓦。然後就另一個而言——我們討論過的其餘兆瓦將用於銷售模組，因此我們只希望能夠迅速扭轉這些局面，獲得收入和現金。

As far as financing goes, we've been looking at construction financing, project financing. And we have some options. We haven't closed on anything yet, but we're looking at various things. And right now we don't see any issues in terms of being able to obtain the financing to be able to hold these projects on our balance sheet for a period of time.

就融資而言，我們一直在關注建築融資、專案融資。我們有一些選擇。我們還沒有結束任何事情，但我們正在考慮各種事情。目前，我們在獲得融資以將這些項目保留在我們的資產負債表上一段時間方面沒有看到任何問題。

Okay. So presumably there's a sort of a turnover rate that you build up to some number of megawatts. You're going to then sell them and then move onto the next project as opposed to getting a big -- a large amount of megawatts that are sitting there that you then find one buyer for.

好的。因此，大概有一種週轉率可以達到一定的兆瓦數。然後你將出售它們，然後轉向下一個項目，而不是獲得一個大的——大量兆瓦的電力，然後你找到一個買家。

Right, that's correct.

對，沒錯。

Okay. And then on -- in terms of the comments on the margin, like the margin at Photo -- sorry, not Photowatt, but ASG was actually quite good both sequentially and year-over-year when you adjust out the one-time costs. But you comment on the impact of Sortimat. So there was a month of Sortimat in these results and yet the margin was higher. Are you trying to say that the margin would have been even higher had you not had Sortimat? Or are you trying to tell us that going forward expect that to come down?

好的。然後 - 就利潤率的評論而言，就像 Photo 的利潤率一樣 - 抱歉，不是 Photowatt，但當你調整一次性成本時，ASG 實際上無論是連續還是同比都相當不錯。但您評論了 Sortimat 的影響。因此，這些結果中有一個月的 Sortimat，但利潤卻更高。您是想說，如果沒有 Sortimat，利潤會更高嗎？或者你想告訴我們，未來預期這種情況會下降？

I think we said when we put out our press release on the acquisition of Sortimat that Sortimat's performance recent and -- recently historical was in the single -- high single digit, which is lower than what ASG is and was. And so we're just trying to make sure that people understood that. And it will take us a bit of time before we could make Sortimat potentially look like the rest of ATS from a financial point of view.

我想我們在發布有關收購 Sortimat 的新聞稿時說過，Sortimat 的近期業績（以及最近的歷史業績）處於高個位數，低於 ASG 現在和過去的業績。所以我們只是想確保人們理解這一點。從財務角度來看，我們還需要一些時間讓 Sortimat 看起來像是 ATS 的其他產品。

And then just for the quarter, as we said, Sortimat only contributed one month, so it's not really that material to the number, although it would have brought it slightly down, but again, not that material. And going forward when we have the full quarters, we'll start to see a bit of the impact.

然後，正如我們所說，就本季度而言，Sortimat 只貢獻了一個月，因此對於這個數字來說並不是那麼重要，儘管它會稍微下降，但同樣，不是那麼重要。展望未來，當我們完成整個季度時，我們將開始看到一些影響。

Okay. That's all I have. Thank you.

好的。這就是我的全部。謝謝。

Your next question comes from David Tyerman from Canaccord Genuity. Please go ahead.

您的下一個問題來自 Canaccord Genuity 的 David Tyerman。請繼續。

Yes, I was wondering if you could provide us with an update on the separation and what steps have happened, what steps are yet to happen. And specifically when you would expect to be able to move it into the -- a non-continuing operations or whatever you want to define it as.

是的，我想知道您是否可以向我們提供有關分居的最新資訊以及已採取哪些步驟、哪些步驟尚未採取。特別是當您希望能夠將其轉移到非連續操作或任何您想要將其定義為的操作時。

David, I'll take the first part and Maria will take the second part. So we have retained independent advisors and they have been active in terms of helping us evaluate our alternatives, and engaging with the community and potential targets, and so on.

大衛，我將負責第一部分，瑪麗亞將負責第二部分。因此，我們保留了獨立顧問，他們一直積極幫助我們評估替代方案，並與社區和潛在目標互動等等。

We are underway. We're not at the beginning, but we're not at the end. We haven't reached the middle yet I would say in terms of the process. And in part, we are guided by our aspiration to move quickly and on the other hand, the conditions in the market and the receptivity of people on the other side in terms of moving forward the way that we intend to move forward.

我們正在進行中。我們不是在開始，但我們也不是在結束。我想說的是，就進程而言，我們還沒有達到中間。一方面，我們受到快速行動的願望的指導，另一方面，市場條件和另一方人們對按照我們打算前進的方式前進的接受程度。

So I can't really put a timeline on it, other than to say that it is something, which is important, strategic, and that the management team is focused on doing as quickly as possible.

因此，我無法真正為其製定時間表，只能說這是一件重要的、具有戰略意義的事情，並且管理團隊專注於盡快完成。

And then just on the accounting side, so there's a number of criteria, as you know, that are -- have to be met in order to be able to record this as a discontinued operation. And we've met a few of them, but right now really because the timing is unknown and the form of the transaction isn't known, we can't put it into discontinued operations. And just as another example, if let's say we were to only sell a part of it, of Photowatt, then it would not go into discontinued operations.

然後就會計方面而言，如您所知，必須滿足許多標準才能將其記錄為已停產業務。我們已經見過其中的一些人，但現在確實因為時間未知且交易形式未知，所以我們無法將其納入非持續經營。另一個例子是，如果我們只出售 Photowatt 的一部分，那麼它就不會停止運作。

Right.

正確的。

But that's just an example.

但這只是一個例子。

Okay, fair enough. And related to that perhaps in some way, I notice in the statements that some of the Photowatt credit agreements are not in compliance with the debt leverage test. I was wondering what's going on and what -- do you anticipate that changing?

好吧，很公平。也許與此相關的是，我在聲明中註意到一些 Photowatt 信貸協議不符合債務槓桿測試。我想知道發生了什麼事——你預計這種情況會改變嗎？

So we are in discussions with our banks on this. And we expect to be able to resolve this within the quarter.

因此，我們正在與我們的銀行就此進行討論。我們預計能夠在本季內解決這個問題。

Okay. And then on Sortimat the intangibles, you have about CAD17 million it looks like of intangibles. What sort of amortization period should we be thinking there?

好的。然後在 Sortimat 無形資產上，你有大約 1700 萬加元，看起來像是無形資產。我們應該考慮什麼樣的攤銷期？

So on average six to eight years.

所以平均六到八年。

Six to eight, okay. And you mentioned the cash tax rates should be lower going forward for a few years. Do you have any thoughts on how we should think about that?

六點到八點就可以了您提到未來幾年現金稅率應該較低。您對我們應該如何思考這個問題有什麼想法嗎？

Yes, so the assets that we set up on the balance sheet are for Canada. So we would expect to not pay any cash taxes in Canada for the next five or so years.

是的，所以我們在資產負債表上設定的資產是加拿大的。因此，我們預計未來五年左右不會在加拿大繳納任何現金稅。

Okay. Wow. And I don't know what -- how -- so if I just look at the asset there and just spread it over five years, is that what I should be thinking about then?

好的。哇。我不知道什麼——如何——所以如果我只看到那裡的資產並將其分散到五年內，那是我應該考慮的嗎？

Yes.

是的。

Okay. That's helpful. And I think that's all I had. Thank you.

好的。這很有幫助。我想這就是我所擁有的一切。謝謝。

Your next question comes from Marko Pencak from GMP Securities. Please go ahead.

您的下一個問題來自 GMP 證券公司的 Marko Pencak。請繼續。

Thank you. You talked about the cost reduction initiative that could cost up to CAD10 million of Photowatt. If my recollection serves me correctly, I believe when you first communicated that to us about five quarters ago, that cost item, CAD10 million, up to CAD10 million was -- is the same. I believe you had targeted roughly CAD10 million in annualized savings. Is that still a reasonable target? Or are there some changes there that have moved that number?

謝謝。您談到了 Photowatt 可能花費高達 1000 萬加元的成本削減計劃。如果我沒記錯的話，我相信當您大約五個季度前第一次向我們傳達這一訊息時，成本項目 1000 萬加元，最多 1000 萬加元是相同的。我相信您的目標是每年節省約 1000 萬加元。這仍然是一個合理的目標嗎？或者是否有一些變化導致了這個數字的變化？

I think on a previous call I said that our normal payback on restructuring was 12 months, but in the Photowatt case it'd be 18. In any case, that's what I think it's like. And in terms of talking about it for five quarters, for the last few quarters, it was about us considering a plan and now it's about implementing a plan. And in that regard, we're at the beginning of the implementation part and we have very specific obligations under French law, which guide how we implement. And so I will give more details as soon as I can on its implementation.

我記得在之前的電話會議上我說過，我們重組的正常回報期是 12 個月，但在 Photowatt 的案例中，它是 18 個月。無論如何，我認為情況就是這樣。就五個季度的討論而言，在過去的幾個季度中，我們正在考慮一項計劃，現在是關於實施一項計劃。在這方面，我們正處於實施部分的開始階段，根據法國法律，我們有非常具體的義務，這些義務指導我們如何實施。因此，我將盡快提供有關其實施的更多細節。

Okay. Thank you. Secondly, you talked about the sale of raw material inventory during the quarter. How much should we -- how should we be thinking about the balance of that inventory sales and what the magnitude is and what the profile is over the next couple of quarters?

好的。謝謝。其次，您談到了本季原材料庫存的銷售情況。我們應該多少錢——我們應該如何考慮庫存銷售的平衡以及未來幾季的規模和概況？

So as far as magnitude goes, I would say most of the dollars were sold in the first quarter. What you've already seen. In Q2 and Q3 we expect to sell most of what's left. So we had written it down significantly to values that are not that material. So in terms of volumes, or amounts, they'll be larger amounts, but the dollar impact will not be material in the next few quarters.

因此，就規模而言，我想說大部分美元都是在第一季出售的。你已經看到了。我們預計在第二季和第三季出售大部分剩餘產品。所以我們把它寫下來，寫成一些不那麼重要的價值。因此，就數量或金額而言，它們的金額將會更大，但美元的影響在未來幾季不會產生重大影響。

Okay. And in terms of -- final question for me. Your Ontario startup costs, you mentioned it was about CAD500,000 in the quarter. How should we -- I mean is that -- help me understand how we should be thinking about that perspective. Is that going to be that amount for the next couple of quarters until you ramp up production? Or is that already going to start to scale off because a lot of the sort of startup costs have already been incurred?

好的。就我而言，最後一個問題。您提到本季您安大略省的啟動成本約為 500,000 加幣。我們應該如何——我的意思是——幫助我理解我們應該如何思考這個觀點。在接下來的幾個季度裡，在你提高產量之前，這個數字會是這個數字嗎？還是因為已經產生了許多此類啟動成本，所以這種規模已經開始縮小？

No, I think it's as you said. So we'll see the CAD500,000 for the next few quarters. And a lot of that really is just SG&A. People, infrastructure that's in place that will continue to be in place. And then when we generate the revenues, the revenues and income should absorb some of those costs.

不，我想就像你說的。因此，我們將在接下來的幾個季度看到 50 萬加元。其中很多其實只是SG&A。人員和基礎設施已經到位，並將繼續到位。然後，當我們產生收入時，收入和收入應該吸收其中一些成本。

Okay. And that's all flowing through your segmented reporting of Photowatt. It's not in your inner Company and overhead line. Is that right?

好的。這就是您對 Photowatt 的分段報告的全部內容。它不在您的內部公司和架空線路中。是對的嗎？

That's correct.

這是正確的。

Okay, thank you.

好的謝謝。

You're welcome.

不客氣。

Your next question comes from Michael Willemse with CIBC. Please go ahead.

您的下一個問題來自 CIBC 的 Michael Willemse。請繼續。

Thank you. Just on the Photowatt Ontario operations again. Just so I understand correctly, the projects that you're building out, you're going to record revenue on the shipments to the other joint venture partner as shipped, but the shipments to your half of the joint venture, that's going to be booked in inventory until the project's complete? Is that right?

謝謝。再次討論 Photowatt Ontario 的運作。我的理解是正確的，對於您正在建造的項目，您將記錄向其他合資夥伴發貨的收入，但向您一半的合資企業發貨的收入將被記錄項目完成之前是否在庫存中？是對的嗎？

Yes, that's correct.

對，那是正確的。

Okay. And this is -- this 65 megawatts in projects, is it going to be -- take a couple of years to build them all out? Or any sense in the timeframe?

好的。這個 65 兆瓦的專案是否需要幾年時間才能全部建成？或是在時間範圍內有什麼意義嗎？

Yes, it's like 18 months-ish, maybe a little more.

是的，大約 18 個月左右，也許更多一點。

Okay. And just you made a comment earlier about some of the parties -- third parties you're talking to are still waiting for fit applications. Do you still have a pretty decent backlog outside of your own projects of third parties that already have the applications? Or are most of them still waiting to get approval?

好的。剛才您早些時候對某些當事方發表了評論——與您交談的第三方仍在等待合適的申請。除了您自己的已擁有應用程式的第三方專案之外，您是否還有相當不錯的積壓工作？或者他們中的大多數仍在等待獲得批准？

Just to be clear, all the applications to date are conditional fit applications. So notwithstanding you have a conditional contract. Sorry, conditional contract. You still have to go through a bunch of hurdles in order to make it a real contract. So in terms of the quality of the pipeline, I would say that the quality of the pipeline is such that our considerations are do we build more than 100-megawatt capacity or do we use third parties? So we're pretty comfortable that we're building a module line, which will be utilized, if not more.

需要明確的是，迄今為止的所有申請都是有條件適合申請。因此，儘管您有條件合約。抱歉，有條件合約。為了使其成為真正的合同，您仍然需要克服一系列障礙。所以就管道的品質而言，我想說管道的品質是這樣的，我們的考慮是我們建造超過100兆瓦的容量還是我們使用第三方？因此，我們對正在建造的模組生產線感到非常滿意，即使不是更多，也會得到利用。

Okay. And how much did it cost to build the 100-megawatt line you have now?

好的。你們現在建造100兆瓦的線路花了多少錢？

So we talked about -- I think we talked about CAD5 million to CAD7 million. And the rough order of magnitude is still correct.

所以我們討論了——我想我們討論了 500 萬至 700 萬加元。而且粗略的數量級仍然是正確的。

Okay. And then just last question. CapEx for the year. I know this quarter you're a bit over CAD10 million. Outside of what you do at Photowatt, should we be thinking around CAD40 million for the year?

好的。然後是最後一個問題。本年度資本支出。我知道這個季度你的收入略高於 1000 萬加元。除了您在 Photowatt 所做的工作之外，我們今年是否應該考慮 4000 萬加元左右？

It should be more in line with our spending last year, apart from as you said, what we've done at Photowatt.

除了你所說的，我們在 Photowatt 所做的事情之外，它應該更符合我們去年的支出。

Okay. So you must have been a bit heavier this quarter than normal?

好的。那麼這個季度您的體重一定比平常重一點嗎？

Yes, definitely. So this quarter's not indicative of CapEx going forward.

當然是。因此，本季並不預示著未來的資本支出。

Okay. Thank you.

好的。謝謝。

You're welcome.

不客氣。

Your next question comes from David Tyerman from Canaccord Genuity. Please go ahead.

您的下一個問題來自 Canaccord Genuity 的 David Tyerman。請繼續。

Yes, hi. I just wanted to clarify. I think Anthony said that the ramp up of Photowatt Ontario would be in months not quarters. But Maria's saying that we're probably going to get CAD500,000 hit from Photowatt Ontario on the SG&A side. Can you help me understand how that works out?

是的，嗨。我只是想澄清一下。我認為 Anthony 說過 Photowatt Ontario 的成長將在幾個月內完成，而不是幾個季度。但瑪麗亞說我們可能會從 Photowatt Ontario 獲得 SG&A 方面的 50 萬加元。你能幫我理解這是如何實現的嗎？

The CAD500,000 has been and will continue to be the SG&A hit on the line.

50 萬加幣已經並將繼續成為 SG&A 的目標。

Right.

正確的。

The process we're in now, the line exists and we just need to add some ancillary equipment. And it's just a matter of doing a controlled, for lack of a better term, ramp up so that we can make sure that the quality and effectiveness and performance parameters of the line are in accordance with what we've designed.

我們現在所處的流程，生產線已經存在，我們只需要增加一些輔助設備。這只是一個受控的問題，因為缺乏更好的術語，所以我們可以確保生產線的品質、有效性和性能參數符合我們的設計。

So for -- it's not a -- it wasn't an answer -- it's not a demand answer or a financial answer, it's simply getting the line from X megawatts up to 100 megawatts in a controlled way. And the CAD500,000 will be there anyway under any circumstances.

因此，這不是一個答案，它不是需求答案或財務答案，它只是以受控方式將線路從 X 兆瓦提高到 100 兆瓦。而且50萬加元無論如何都會有的。

So the total profitability out of Photowatt Ontario could be considerably better than the CAD500,000 hit reasonably quickly. Maybe not this quarter, but certainly if you're ramping reasonably fast, fairly quickly. Is that correct?

因此，Photowatt Ontario 的總獲利能力可能會比很快達到的 50 萬加幣的目標要好得多。也許不是這個季度，但如果你的成長速度相當快，那麼肯定是這樣。那是對的嗎？

That would be our objective.

這將是我們的目標。

Okay. And then the other question I had -- or two other questions. How long do you expect the Sortimat integration period to take to get the margins in that operation up to ASG type levels?

好的。然後是我的另一個問題——或者另外兩個問題。您預計 Sortimat 整合期需要多長時間才能使該作業的利潤達到 ASG 類型的水平？

Not dissimilar to what we talked about many quarters ago here. There's a number of reasons for the issues. One is if there's a program in backlog, which is RED, depending on the percentage completion, like if it's 75% complete say, it's really hard to make it un-RED. On the other hand, if something has been bid and won, and it is potentially RED but it's not RED yet, maybe we can make it into a yellow before it actually get revenued.

與我們幾個季度前在這裡討論的內容沒有什麼不同。造成這些問題的原因有很多。一是如果有一個積壓的程序，它是紅色的，取決於完成百分比，例如如果它完成了 75%，那麼真的很難讓它變成非紅色。另一方面，如果某物已被競標並贏得，並且它可能是紅色的，但它還不是紅色的，也許我們可以在它實際獲得收入之前將其變成黃色。

And the third part is on the bidding side. So the best way to eliminate RED programs is to not create them. So I think I would say it'll take less time than what it took in ATS and maybe in ATS substantially -- we had a lot of RED programs and then I think I said maybe five or six quarters later that we were down to like 20% RED programs. And then a couple of quarters later I said that we had a handful. And I think today I said that we either got rid of them or we have a definitive course of action to get rid of them all. So I think it's like maybe three or four quarters.

第三部分是招標方面。因此，消除 RED 程式的最佳方法就是不建立它們。所以我想我會說這比 ATS 花費的時間要少，而且可能比 ATS 花費的時間要少——我們有很多 RED 項目，然後我想我說過也許五六個季度後我們就會喜歡20%紅色計劃。幾個季度後，我說我們有一些。我想今天我說過，我們要么擺脫它們，要么我們有明確的行動方針來擺脫它們。所以我認為可能是三到四個季度。

Right. Okay. Yes, because you got up to double-digit margins within a few quarters of arriving at that ASG. So -- or at ATS. So it sounds like at that pace or faster than -- and you're starting from a higher base obviously too.

正確的。好的。是的，因為在達到該 ASG 後的幾個季度內，您的利潤率就達到了兩位數。所以——或者在 ATS。所以聽起來像是以這樣的速度或更快的速度——而且你顯然也是從更高的基礎開始的。

The last question I had was just on the balance sheet. The accounts receivable and accounts payable really ballooned out from Q4 levels. Some of it obviously is the receivables related to the silicon you sold, but that would be a small part of it. I'm just wondering does this go down very quickly? Or is there something else going on?

我的最後一個問題是關於資產負債表的。應收帳款和應付帳款確實比第四季的水平大幅成長。其中一些顯然是與您出售的矽相關的應收帳款，但這只是其中的一小部分。我只是想知道這會下降得很快嗎？還是還有其他事情發生？

So most of it is Sortimat related. And would it go down? I would say our expectation is actually that these amounts increase as our activity starts to increase. So assuming our bookings levels do increase, then we're going to start to build up our balance sheet again and we'll see more receivables and more payables -- or higher receivables and payables going forward.

所以大部分都與Sortimat相關。它會下降嗎？我想說的是，我們的預期實際上是，隨著我們的活動開始增加，這些金額也會增加。因此，假設我們的預訂量確實增加，那麼我們將開始再次建立我們的資產負債表，我們將看到更多的應收帳款和更多的應付帳款——或者未來更高的應收帳款及應付帳款。

So does Sortimat have a very high level receivables? Because I just looked, like you had CAD86 million of receivables at the end of Q4. You're up to CAD131 million, so maybe you back out CAD7 million or something for the silicon, but you're still up CAD40 million then. That sounds like a pretty big jump.

那麼 Sortimat 的應收帳款水準是否非常高？因為我剛剛查了一下，第四季末你們有 8,600 萬加元的應收帳款。你的資金達到 1.31 億加元，所以也許你會為晶片拿出 700 萬加元或其他費用，但那時你仍然有 4000 萬加元。這聽起來是一個相當大的跳躍。

Yes, so it's not all Sortimat related. Some of it is programs at ASG.

是的，所以這並不全都與 Sortimat 有關。其中一些是 ASG 的專案。

Yes.

是的。

So we're just -- there's certain programs that are underway and we've been able to build a customer. And in other cases, we are purchasing some more material or advanced material purchases for certain automation programs.

所以我們只是——某些專案正在進行中，我們已經能夠建立一個客戶。在其他情況下，我們會為某些自動化程序購買更多材料或高級材料。

Okay. But it sounds like what you're saying is don't expect this thing to come down much and in fact expect it to build over time as the business grows.

好的。但聽起來你的意思是不要指望這件事會下降太多，事實上，隨著業務的成長，它會隨著時間的推移而增加。

Yes.

是的。

Okay, thank you.

好的謝謝。

You're welcome.

不客氣。

(Operator instructions) Mr. Caputo, there are no further questions. Please continue.

（接線生指示）卡普托先生，沒有其他問題了。請繼續。

Thank you very much and thank you, Operator.

非常感謝你，謝謝你，接線生。