Bel Fuse Inc (BELFA) 2003 Q3 法說會逐字稿

Good morning, ladies and gentlemen. Thank you for standing by. Welcome to the Bel Fuse Incorporated third quarter results conference call. During the presentation all participants will be in a listen-only mode. Afterwards we will conduct a question and answer session. At that time if you have a question, please press the 1 followed by the 4 on your telephone.

早安，女士們，先生們。謝謝你的支持。歡迎參加 Bel Fuse 公司第三季業績電話會議。在演示期間，所有參與者將處於僅聽模式。隨後我們將進行問答環節。屆時，如果您有疑問，請按電話上的 1，然後按 4。

As a reminder, this conference is being recorded, Wednesday, October 29, 2003. I would now like to turn the conference over to Dan Bernstein, President and CEO of Bel Fuse Incorporated. Please go ahead, sir.

提醒一下，本次會議的錄音時間為 2003 年 10 月 29 日星期三。我現在將會議交給 Bel Fuse Incorporated 總裁兼執行長 Dan Bernstein。請繼續，先生。

Thank you, [Chrissie]. I would like to welcome you all to our conference call to review Bel’s third quarter financial results for 2003. Before we start, I would like to hand it over to Colin Dunn, our Vice President of Finance. Colin?

謝謝你，[克麗絲]。我歡迎大家參加我們的電話會議，回顧 Bel 2003 年第三季的財務表現。在我們開始之前，我想將其交給我們的財務副總裁 Colin Dunn。科林？

Good morning, everybody. Thanks, Dan. I want to start with the forward-looking statements—Safe Harbor statement. Except for historical information contained in our results today, the matters discussed are forward-looking statements that involve risks and uncertainties.

大家早安。謝謝，丹。我想從前瞻性聲明——安全港聲明開始。除了我們今天的業績中包含的歷史資訊外，所討論的事項均為前瞻性陳述，涉及風險和不確定性。

Among the factors that could cause actual results to differ materially from such statements are the market conditions facing our customers, the continuing viability of the sectors that rely on our products, the effect of business and economic conditions, the difficulties inherent in integrating remote businesses that may have followed business practices that differ from the company’s business practices, capacity and supply constraints or difficulties, product development, promotionalizing for technological difficulties, the regulatory and trade environment, uncertainties associated with legal proceedings, the market’s acceptance of new products and the competitive responses to those new products, and the risks detailed from time to time in the company’s SEC reports.

可能導致實際結果與此類陳述有重大差異的因素包括我們客戶面臨的市場狀況、依賴我們產品的行業的持續生存能力、業務和經濟狀況的影響、整合遠程業務所固有的困難可能遵循與公司業務慣例、產能和供應限製或困難、產品開發、技術困難促銷、監管和貿易環境、與法律程序相關的不確定性、市場對新產品的接受度和競爭反應不同的業務慣例這些新產品，以及公司SEC 報告中不時詳細說明的風險。

In light of the risks and uncertainties, there can be no assurance that any forward-looking statement will in fact prove to be correct. We undertake no obligation to update or revise any forward-looking statements. Now I’ll move on to general comments about our results.

鑑於風險和不確定性，無法保證任何前瞻性聲明實際上被證明是正確的。我們不承擔更新或修改任何前瞻性陳述的義務。現在我將繼續對我們的結果進行一般性評論。

For the end of the quarter we met after-tax earnings of 3.6m, or 32 cents per FDS. Of course this was a significant increase from the net profit of 1.746m for the third quarter of 2002 and compares to the profit of 2.757m in the previous quarter of 2003.

本季末，我們的稅後收益為 360 萬美元，即每 FDS 32 美分。當然，與2002年第三季174.6萬的淨利潤以及2003年上一季275.7萬的淨利潤相比，這是一個顯著的增長。

For the quarter our sales were 45.9m and 67% above the 27.4m in the third quarter of 2002. And this was sequentially above the 44.8m of the preceding quarter ended June, 2003. We wish to point out that consistent with Bel’s integration was the fact its components group of the Insilco Technologies into Bel, after June, 2003, we do not effectively break-out revenues from the acquired facilities group, as we are already allocating production of some Bel Legacy products into the Passive Components Group facilities and vice versa.

本季我們的銷售額為4,590 萬輛，比2002 年第三季的2,740 萬輛高出67%。這連續高於截至2003 年6 月的上一季的4,480 萬輛。我們希望指出，與Bel的整合一致的是事實上，在2003 年6 月之後，我們將Insilco Technologies 的組件集團併入Bel，我們並沒有有效地從所收購的設施集團中劃分收入，因為我們已經將一些Bel Legacy 產品的生產分配給被動組件集團的設施和副產品。反之亦然。

Our sales mix has changed with the addition of the package business. For the third quarter of 2003, our magnetics, including connectors, accounted for 78% of sales, products in [K] was 9%, fuses 9% and value added products 4%.

隨著包裝業務的增加，我們的銷售結構也發生了變化。 2003年第三季度，我們的磁性產品（包括連接器）佔銷售額的78%，[K]產品佔9%，保險絲佔9%，增值產品佔4%。

Our gross margin for the third quarter was 29%, compared to a gross margin for the same period in 2002 of 23%. The 29% was also above the 27% gross margin for the second quarter of 2003 and this was despite the inclusion of the Passive Group, which had much lower gross profit margins and some continuing with minor transitional inefficiencies that we are viably eliminating.

我們第三季的毛利率為 29%，而 2002 年同期的毛利率為 23%。 29% 的毛利率也高於2003 年第二季27% 的毛利率，儘管將被動集團納入其中，該集團的毛利率要低得多，而且我們正在切實消除一些持續存在的輕微轉型低效率問題。

In our powering facilities we had a total 7,800 workers at September 30 of 2003. By comparison, the combined headcount of both entities at September, 2002, before the combination of Bel and Insilco’s package components group, was 9,100. At the Bel facilities alone we have reduced headcount in the Far East by 1,100 people.

截至 2003 年 9 月 30 日，我們的供電設施共有 7,800 名工人。相較之下，2002 年 9 月（Bel 和 Insilco 成套組件集團合併前）兩個實體的總人數為 9,100 人。光是在貝爾工廠，我們就在遠東地區減少了 1,100 名員工。

SG&A’s increase of 3.3m or almost 3.4m, was 79% from the same quarter a year ago and is a 700,000 decrease—that’s 8%, from the prior second quarter of 2002. The percentage relationship of SG&A to net sales increased from 15.5% during the third quarter of 2002, to 16.6% during the third quarter of 2003. Bel attributes the 3.4m increase in the dollar amount of such expenses principally to the cost associated with the Insilco and [APC] operations of approximately 3.1m.

SG&A 增加了 330 萬或近 340 萬，比去年同期增加了 79%，與 2002 年第二季度相比減少了 700,000，即 8%。SG&A 與淨銷售額的百分比關係從 15.5% 上升2002 年第三季度的成長率為2003 年第三季的16.6%。Bel 將此類費用增加的340 萬美元主要歸因於與Insilco 和[APC] 營運相關的約310 萬美元的成本。

Additional salaries amounted to $400,000. Additional professional fees of $200,000 and amortization of identical intangible assets is $200,000 in connection with the acquisition of the Passive Group. And $300,000 in connection with the impairment loss associated with [Rynal] manufacturing facility in Illinois. These were offset in fact by the lower sales generation and related selling expenses in the amount of $500,000 primarily associated with lower shipping costs and commission expense.

額外工資達40萬美元。與收購 Passive Group 有關的額外專業費用為 200,000 美元，相同無形資產攤提為 200,000 美元。 30 萬美元與伊利諾伊州 [Rynal] 製造工廠相關的減損損失有關。事實上，這些損失被銷售下降和相關銷售費用 50 萬美元所抵消，這主要與運輸成本和佣金費用的降低有關。

Taxes; this quarter our taxes are especially high. There are two factors—the primary factors that affected this one, of course, is the increased earnings, which is always nice to see. And the other was the reversal of a valuation of tax loss carried forward in the Far East.

稅收；這個季度我們的稅收特別高。有兩個因素——影響這一因素的主要因素當然是收入的增加，這總是令人高興的。另一個是遠東結轉稅收損失估值的逆轉。

Moving to the balance sheet, the cash and equivalents at the end of September, our cash equivalents and securities were 52m. We had taken down a $10m current million dollar termed note in the USA during March, 2003 in conjunction with the Insilco acquisition. Our intent is to pay that down at $500,000 per quarter.

轉向資產負債表，截至 9 月底，我們的現金等價物和證券為 5,200 萬美元。 2003 年 3 月，隨著 Insilco 的收購，我們在美國取得了一張 1,000 萬美元的現值百萬美元票據。我們的目的是每季支付 50 萬美元。

Net cash during the period provided by operating activities was $8.2m.

期內經營活動提供的淨現金為 820 萬美元。

Our receivables net of allowances at September 30th was $33m. This is up almost $1.5m from the prior quarter. The Insilco companies had much more liberal credit terms in place for some customers over what we believe are standard industry terms. And while we continue to live up to some of these credit arrangements going forward, it is our intent not to continue at those prior levels and bring in standard Bel practices.

截至 9 月 30 日，我們的應收帳款扣除備抵後為 3,300 萬美元。這比上一季增加了近 150 萬美元。 Insilco 公司為某些客戶提供的信貸條款比我們認為的標準行業條款更為寬鬆。雖然我們繼續遵守其中一些信貸安排，但我們打算不再繼續保持先前的水平並引入標準的 Bel 做法。

Accounts payable for the same period is 8.3m. We are still struggling with several vendors to try and bring them back from where they were at Insilco on their credit terms during the Chapter 11 bankruptcy. We are making good progress in this area.

同期應付帳款為830萬。我們仍在與幾家供應商進行鬥爭，試圖讓他們按照破產法第 11 章破產期間的信用條件從 Insilco 的狀態中恢復過來。我們在這一領域正在取得良好進展。

Inventories for the September period were 28.2m, which is 2.4m below the June, 2003 levels. Capital spending for the YTD is 2.1m net of acquisitions. This of course is well below our depreciation and amortization which for the prior nine-months was 6.1m.

9月份的庫存為2820萬，比2003年6月的水準低240萬。年初至今的資本支出（扣除收購費用）為 210 萬美元。這當然遠低於我們的折舊和攤銷，前九個月為 610 萬。

We continue to investigate several potential acquisition candidates. We currently have no specific due diligence in progress. Our book value at September 30th, 2003 was approximately $12.63.

我們將繼續調查幾個潛在的收購候選人。我們目前沒有正在進行具體的盡職調查。截至 2003 年 9 月 30 日，我們的帳面價值約為 12.63 美元。

Now some general comments. We have made significant progress consolidating the Insilco companies into Bel’s global operations. We have consolidated their San Diego operations into Bel’s existing San Diego facilities and we consolidated their Monterrey, Mexico operations in the Dominican Republic facilities and closed that Monterrey facility in Mexico in the third quarter of 2003.

現在一些一般性評論。我們在將 Insilco 公司整合到 Bel 的全球營運方面取得了重大進展。我們已將其在聖地牙哥的業務合併到 Bel 現有的聖地牙哥工廠中，並將其在墨西哥蒙特雷的業務合併到多明尼加共和國的工廠中，並於 2003 年第三季關閉了墨西哥的蒙特雷工廠。

Bel has been aggressively progressing with the section 4 requirements of the Sarbanes-Oxley Act and in 2003 we expect to incur approximately $500,000 in one-time special charges related to compliance. And through the second quarter of 2002 we have already incurred an expense against [count] results, in excess of $300,000. In addition, we will still have an ongoing, yet undetermined annual maintenance and annual water fee to maintain compliance.

Bel 一直在積極推進《薩班斯-奧克斯利法案》第 4 條的要求，2003 年我們預計將產生約 50 萬美元的與合規相關的一次性特殊費用。到 2002 年第二季度，我們已經為[計數]結果產生了超過 300,000 美元的費用。此外，我們仍將進行持續但未確定的年度維護和年度水費，以維持合規性。

I’ll now turn it back to Dan Bernstein.

現在我將把它轉回丹伯恩斯坦。

Chrissie, can we open it up for questions?

Chrissie，我們可以開放提問嗎？

Thank you. Ladies and gentlemen, if you would like to register a question, please press the 1 followed by the 4 on your telephone. You will hear a three-toned prompt to acknowledge your request. If your question has been answered and you would like to withdraw your registration, please press the 1 followed by the 3. If you are using a speakerphone, please lift your handset before entering your request. One moment please for the first question.

謝謝。女士們、先生們，如果您想登記問題，請按電話上的 1，然後按 4。您將聽到三聲提示音以確認您的要求。如果您的問題已得到解答並且您想撤銷註冊，請按 1，然後按 3。如果您使用免持電話，請在輸入請求之前拿起聽筒。請稍等一下第一個問題。

Our first question comes from the line of Todd Cooper, from Stephens Inc. Please go ahead, sir.

我們的第一個問題來自史蒂芬斯公司的托德庫柏（Todd Cooper）。請繼續，先生。

Dan or Colin, do you care to share any guidance for the fourth quarter?

Dan 或 Colin，您願意分享第四季度的任何指導嗎？

Dan pointed the finger at me, so I guess I’ve got it. We still don’t see a lot of visibility in the market place. I think we’ve been doing reasonably well in an environment, particularly in the US, that remains extremely competitive. We have seen some jockeying around between different competitors, particularly in the integrated connector module area, the MagJack area. And we’ve seen some newer players or players come into that market place that weren’t as significant in the past.

丹把矛頭指向了我，所以我想我明白了。我們在市場上仍然沒有看到太多的知名度。我認為我們在競爭仍然極其激烈的環境中表現相當不錯，尤其是在美國。我們看到了不同競爭對手之間的一些競爭，特別是在整合連接器模組領域，即 MagJack 領域。我們已經看到一些新的參與者或參與者進入了這個過去不那麼重要的市場。

We would expect, however, based on what we know now, we’re already through one quarter of the fourth period, that we will have just a slight improvement in the fourth quarter over the third quarter. But we don’t expect to see anything remarkable. And that will apply both to top line and bottom line.

然而，根據我們現在所知，我們預計第四季已經過了四分之一，第四季將比第三季略有改善。但我們並不期望看到任何非凡的事物。這將同時適用於頂線和底線。

I know you don’t like to give out your backlog, but can you tell us where it was, relative to the last quarter? And can you also discuss the level of turns business that you’re doing in the quarter?

我知道您不喜歡透露積壓的訂單，但您能告訴我們相對於上個季度的積壓情況嗎？您還能討論一下您在本季所做的輪調業務水準嗎？

The backlog remains pretty stable.

積壓訂單維持相當穩定。

Yes, everything’s very stable. The backlog, I think what we have today, Todd, is really a function of the surplus capacity environment we live in. The customers know that everybody has fairly good capacity and most materials can be purchased on reasonably short lead times. So, the inventory carrying is all pushed back now to the supplies, if you will.

是的，一切都很穩定。托德，我認為我們今天的積壓實際上是我們所處的產能過剩環境的結果。客戶知道每個人都有相當好的產能，並且大多數材料都可以在相當短的交貨時間內購買。因此，如果您願意的話，庫存現在全部推回供應。

The concept we had a year or so ago where we were seeing lots of consigned inventory and customers requiring us to keep consigned inventory at various locations throughout the world has sort of diminished. That’s not necessary now because they know that the vendors, their suppliers, can ramp-up. So, that’s about where we are.

大約一年前，我們看到大量寄售庫存，客戶要求我們在世界各地的不同地點保留寄售庫存，這一概念已經減弱。現在沒有必要了，因為他們知道供應商、他們的供應商可以擴大規模。所以，這就是我們現在的情況。

Okay. And you didn’t break it out this way, but can you tell me the percentage of your revenue in the quarter that was associated with the integrated connector modules?

好的。您並沒有這樣分解，但您能告訴我該季度與整合連接器模組相關的收入百分比嗎？

No, we don’t break that figure out. In total, I think the total magnetics area and obviously integrated connectors are a big portion of that. But our total magnetics, I think was about 70 or 78%.

不，我們不會打破這個數字。總的來說，我認為總磁性區域和顯然集成的連接器佔其中的很大一部分。但我認為我們的總磁性約為 70% 或 78%。

Okay. Are there any additional savings to be had from the Insilco acquisition?

好的。收購 Insilco 是否能帶來額外的節省？

Offhand, we probably got down to about 90% of our savings at this point in time. So we still have a little bit further to go regarding materials and so forth. But I would say we’re pretty much down to most of the savings.

順便說一下，此時我們的儲蓄可能已經減少到了 90% 左右。因此，在材料等方面我們還有一些工作要做。但我想說的是，我們幾乎已經花光了大部分省下的錢。

Okay. And you say there’s nothing eminent on the acquisition front?

好的。你說收購方面沒有什麼突出的事情嗎？

Well, we’re talking but nothing—we have one confidentiality agreement signed, but we’re still talking to a lot of companies. I think we probably have three or four companies we’re talking to, but nothing definite.

好吧，我們只是在談論，但什麼也沒有——我們簽署了一份保密協議，但我們仍在與許多公司交談。我認為我們可能正在與三、四家公司進行洽談，但沒有任何明確的消息。

Okay. Well, good quarter, fellows. Thanks.

好的。好吧，夥計們，幹得好。謝謝。

Ladies and gentlemen, as a reminder, to register for a question, press the 1, 4. The next question is from the line of Joe [Dostall], of National Securities.

女士們、先生們，提醒一下，要註冊提問，請按 1、4。下一個問題來自國家證券公司的 Joe [Dostall]。

Yes, good morning. You mentioned the tax rate, I believe, was kind of on the high side. But you mentioned a reversal. So, I would indicate from that that this would be a one-time thing and the tax rate could go down some from here?

是的，早安。我認為你提到的稅率有點偏高。但你提到了逆轉。那麼，我想指出，這將是一次性的事情，稅率可能會從這裡下降一些？

Hopefully, Joe. We really want it to go down. It was a one-time thing and we expect it to settle back down into the low to mid-20% range going forward.

希望如此，喬。我們真的希望它下降。這是一次性的事情，我們預計未來它會回落到 20% 的低至中區間。

Now this was sort of addressed earlier, but another way of looking at it—how is your book to bill ratio going?

現在，這個問題已經在早些時候得到了解決，但可以換一種方式來看待——你的訂單出貨比怎麼樣？

It’s pretty close to 1. It’s up and down from day to day. But it’s not much there. We’re certainly not gaining on it dramatically.

它非常接近 1。它每天都在上下波動。但那裡的東西並不多。我們當然不會有顯著的進展。

Okay. Are you positive though?

好的。你還積極嗎？

Yes.

是的。

I guess we’re cautiously optimistic. We start to see turn, whether it be on Cisco. The [China Chambers] have made comments recently. Intel has made comments recently. And for us, they’re the two major people that are out there that really understand the market place and control so much of it. I think when they start seeing things positive, hopefully it will filter down to our other customers. I mean, they’re a lot more positive than they have been over the last 12-18 months.

我想我們是謹慎樂觀的。我們開始看到轉變，無論是思科。 【中國商會】近日已發表評論。英特爾最近發表了評論。對我們來說，他們是真正了解市場並控制大部分市場的兩個主要人物。我認為，當他們開始看到積極的事情時，希望它會滲透到我們的其他客戶身上。我的意思是，他們比過去 12-18 個月要積極得多。

Okay. Voice over Internet protocol, the products that you have there that you’re selling, how is the VOIP area going?

好的。網際網路協定語音，您銷售的產品，VOIP 領域進度如何？

That's still a good area for us and we’re still [indecipherable] selling magnetic and integrated connector modules in that area. So it’s a nice area for us and we’re addressing it, I think, properly.

這對我們來說仍然是一個很好的領域，我們仍然[無法辨認]在該領域銷售磁性和整合連接器模組。所以這對我們來說是一個很好的領域，我認為我們正在正確地解決這個問題。

Okay. I’ve always felt that there should be a lot of potential there, so I assume that you’re pretty positive about the potential growth there?

好的。我一直覺得那裡應該有很大的潛力，所以我想你對那裡的潛在成長非常樂觀？

One thing about Bel, we have a lot of potential, a lot of different technologies and that’s one of them. But once again, until we see it, it’s hard to determine.

關於貝爾的一件事是，我們有很大的潛力，有很多不同的技術，這就是其中之一。但再一次，在我們看到它之前，很難確定。

It’s been a long journey with VOIP. I think we’ve probably had like three or four years we were on the status committees way back when. And so, we’ve got a lot of experience there. It’s been a very, very slow rollout, however. Locally we’re going to pick up some [fruit] here at long last.

VOIP 經歷了一段漫長的旅程。我想我們可能已經在地位委員會工作了三、四年了。因此，我們在那裡擁有豐富的經驗。然而，這是一個非常非常緩慢的推出。在當地，我們終於要在這裡採摘一些[水果]。

Okay. You made some comments about adjustments and write-offs during the quarter. Could you kind of summarize that again?

好的。您對本季的調整和沖銷發表了一些評論。能再總結一下嗎？

Certainly. We’ve had these additional Sarbanes-Oxley type expenses, mainly related to bringing in additional parties. Actually, we hired a different accounting firm to do some work for us. And we have ongoing documentation projects internally. We’ve already spent about $.5m on that this year.

當然。我們有這些額外的薩班斯-奧克斯利法案類型的費用，主要與引入額外的各方有關。實際上，我們聘請了另一家會計師事務所為我們做一些工作。我們內部正在進行文檔專案。今年我們已經為此花費了大約 50 萬美元。

We have an old facility, which we’ve had for a long time, actually for about 12 years, which we’ve never been able to sell, in southern Illinois, that has been written down fairly low on our books. And we’ve decided now to write that fully off on our books. And that was another $300,000+ there.

我們在伊利諾伊州南部有一個舊設施，我們已經擁有很長時間了，實際上已經有大約 12 年了，但我們從未能夠出售它，它在我們的賬簿上的記錄相當低。我們現在決定將其完全記在我們的帳本上。那裡還有 30 萬多美元。

We had some—as part of the consolidation in some other areas, a realignment of some of the bunches within our company we had all sorts of additional terminations of professional folks. And there was about $400,000 in there. They were the key one-time costs.

我們有一些——作為其他一些領域整合的一部分，我們公司內部一些團隊的重新調整，我們對專業人員進行了各種額外的解僱。裡面大約有40萬美元。它們是關鍵的一次性成本。

Okay, so that’s about 400, 300, 700, so somewhere north of 700,000 in write-offs and adjustments?

好吧，大約是 400、300、700，那麼沖銷和調整的金額是否超過 700,000？

Yes.

是的。

Okay. Upwards to a million maybe?

好的。也許高達一百萬？

No, that’s about where we’re at.

不，這就是我們現在的情況。

Okay. Any color you can give us on any products that are coming—areas that you’re kind of excited about?

好的。您可以為我們即將推出的任何產品提供任何顏色嗎？您對哪些領域感到興奮？

We’re dealing with a lot of different products. Once again, we did a lot of work in home, P&A, a lot of work with putting through the power lines, the power connections in your house. We’ve done a lot of work with the power parts, with the IC houses, working with them to support their new ICs. We’ve done a lot of work with the set-tip boxes with diaplexes.

我們正在處理很多不同的產品。再一次，我們在家裡做了很多工作，P&A，很多工作包括接通電源線，連接你家裡的電源。我們在電源部件和 IC 公司方面做了很多工作，與他們合作支援他們的新 IC。我們在有雙工機頂盒方面做了很多工作。

So we are looking at all the cutting edge technology and trying to support with proper products. The question is, when this breaks and if it ever does break. We don’t know. But I think we’re dealing with the right customers and the right IC houses, so I think we’re very well positioned, after some of these technologies do take off.

因此，我們正在研究所有尖端技術並嘗試提供適當的產品支援。問題是，這個何時破裂以及是否真的破裂。我們不知道。但我認為我們正在與合適的客戶和合適的 IC 公司打交道，所以我認為在其中一些技術真正起飛之後，我們處於非常有利的位置。

Okay. Thank you. Good job, guys.

好的。謝謝。幹得好，夥計們。

Once again, to register for a question, press the 1, 4. Gentlemen, I show no further questions at this time. I will now turn the call back to you. Please continue.

再次，要註冊問題，請按 1、4。先生們，我現在沒有進一步的問題。我現在將把電話轉回給您。請繼續。

I’d like to thank everybody for joining us and we’ll hopefully hear from you in our next quarter. Thanks again.

我要感謝大家加入我們，希望我們能在下個季度收到您的來信。再次感謝。

Ladies and gentlemen, that does conclude the conference call for today. We thank you for your participation and ask that you please disconnect your line.

女士們先生們，今天的電話會議到此結束。我們感謝您的參與，並請您斷開線路。