Bel Fuse Inc (BELFA) 2021 Q1 法說會逐字稿

Good day, and welcome to the Bel Fuse Inc. First Quarter 2021 Results Conference Call. Today's conference is being recorded.

美好的一天，歡迎參加 Bel Fuse Inc. 2021 年第一季業績電話會議。今天的會議正在錄製中。

At this time, I'd like to turn the conference over to Mr. Dan Bernstein, President and Chief Executive Officer. Please go ahead.

現在，我想將會議交給總裁兼執行長丹·伯恩斯坦先生。請繼續。

Thank you, Jennifer. Joining me on the call today is Farouq Tuweiq, our CFO; Craig Brosious, our Vice President of Finance; and Lynn Hutkin, our Director of Financial Reporting.

謝謝你，詹妮弗。今天和我一起參加電話會議的是我們的財務長 Farouq Tuweiq； Craig Brosious，我們的財務副總裁；以及我們的財務報告總監 Lynn Hutkin。

Before begin the call, I'd like to ask Lynn to go over the safe harbor statement. Lynn?

在開始通話之前，我想請林恩回顧安全港聲明。林恩？

Thank you, Dan. Good morning, everybody. Before we start, I'd like to read the following safe harbor statement.

謝謝你，丹。大家早安。在我們開始之前，我想閱讀以下安全港聲明。

Except for historical information contained on this call, the matters discussed on this call, such as statements regarding the anticipated impact of the acquired EOS Power business on our results, anticipated higher sales for our Magnetic Solutions group during the second and third quarters as a result of strong bookings in the first quarter, expectations regarding our scheduled backlog as an indicator of stronger sales in the second and third quarters, expected contributions to net earnings from our rms and EOS acquisition, and cost savings from restructuring efforts and our efforts to continue to optimize our cost structure are all forward-looking statements as described under the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. Actual results could differ materially from Bel's projections.

除了本次電話會議中包含的歷史資訊外，本次電話會議討論的事項，例如有關收購的EOS Power 業務對我們業績的預期影響的聲明，預計我們的磁性解決方案團隊在第二季度和第三季度的銷售額將增加第一季的強勁預訂、對我們預定積壓訂單的預期（作為第二季和第三季銷售強勁的指標）、我們的rms 和EOS 收購對淨利潤的預期貢獻、重組工作所節省的成本以及我們繼續努力優化我們的成本結構都是根據 1995 年《私人證券訴訟改革法案》描述的前瞻性陳述，涉及風險和不確定性。實際結果可能與貝爾的預測有重大差異。

Among the factors that could cause actual results to differ materially from such statements are: the market concerns facing our customers; the continuing viability of sectors that rely on our products, the impact of public health crises, such as the governmental, social and economic effects of COVID-19; the effects of business and economic conditions; difficulties associated with integrating recently acquired companies; capacity and supply constraints or difficulties; product development, commercialization or technological difficulties; the regulatory and trade environment; risks associated with foreign currencies; uncertainties associated with legal proceedings; the market's acceptance of the company's new products and competitive responses to those new products; the impact of changes to U.S. trade and tariff policies; and the risk factors detailed from time to time in the company's SEC reports.

可能導致實際結果與此類聲明有重大差異的因素包括： 客戶面臨的市場擔憂；依賴我們產品的產業的持續生存能力、公共衛生危機的影響，例如 COVID-19 對政府、社會和經濟的影響；商業和經濟狀況的影響；與整合最近收購的公司相關的困難；產能和供應限製或困難；產品開發、商業化或技術困難；監管和貿易環境；與外幣相關的風險；與法律程序相關的不確定性；市場對公司新產品的接受度以及對這些新產品的競爭反應；美國貿易和關稅政策變化的影響；以及公司 SEC 報告中不時詳細說明的風險因素。

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. We also may discuss non-GAAP results during this call and reconciliations of our GAAP results to non-GAAP results have been included in our release.

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。我們也可能在本次電話會議期間討論非 GAAP 業績，我們的 GAAP 業績與非 GAAP 業績的對帳已包含在我們的新聞稿中。

I would now like to turn the call back to Dan for a general business update.

我現在想將電話轉回給 Dan，了解一般業務更新。

Thank you, Lynn, and thanks, everybody, for joining us on the call today. I hope that you and your families continue to stay safe during these difficult times.

謝謝林恩，也謝謝大家今天加入我們的電話會議。我希望您和您的家人在這些困難時期繼續保持安全。

First, I'd like to provide an update on COVID-19 and how it impacted our facilities. Overall, I'm pleased to report that all manufacturing sites globally continue to be operational throughout the first quarter.

首先，我想介紹一下有關 COVID-19 的最新情況及其對我們設施的影響。總的來說，我很高興地報告，全球所有製造基地在第一季繼續運作。

Our most recent acquisition, EOS, is based in Mumbai, India where they're going through a very difficult time. The factory continues to be operational as they manufacturer essential products and protective measures have been put in place to prioritize the safety of our new associates. We would like to thank these new associates for working each day under these difficult conditions.

我們最近收購的 EOS 位於印度孟買，他們在那裡正在經歷一段非常困難的時期。工廠繼續運營，生產重要產品，並已採取保護措施，優先考慮新員工的安全。我們要感謝這些新同事每天在困難的條件下工作。

Before getting to our results, while Bel does not normally comment on market activity, we realized there was a substantial amount of trading in Bel's stock on Friday, and the company does not know the reason for this increased trading activity.

在得出我們的結果之前，雖然 Bel 通常不會對市場活動發表評論，但我們意識到週五 Bel 的股票交易量很大，並且該公司不知道交易活動增加的原因。

Turning to our results. We saw a 6% improvement in sales as compared to last year's first quarter. Demand in each of our markets was strong with the exception of commercial aerospace. Both e-mobility and circuit protection had exceptional quarters and demand from our distribution partners were strong, which is a good indicator of general market demand to their broad customer base.

轉向我們的結果。與去年第一季相比，我們的銷售額成長了 6%。除商業航空航太外，我們每個市場的需求都很強勁。電動車和電路保護都有出色的季度表現，我們的分銷合作夥伴的需求也很強勁，這很好地表明了其廣大客戶群的整體市場需求。

Sales within the Power Solutions and Protection group were up $7.5 million or 21% from the first quarter of 2020. CUI turned in another strong performance this quarter with $2.1 million increase in sales over last year's first quarter.

電源解決方案和保護集團的銷售額比 2020 年第一季度增長了 750 萬美元，即 21%。CUI 本季再次表現強勁，銷售額比去年第一季增長了 210 萬美元。

Our products sold into e-mobility applications were up $1.5 million, a 100% increase from 2020 first quarter and fuse sales were up $1.6 million, an increase of 60% from last year's first quarter. The areas of growth were partially offset by elimination of low-margin products within the group.

我們的電動車應用產品銷售增加了 150 萬美元，比 2020 年第一季成長了 100%，保險絲銷售額成長了 160 萬美元，比去年第一季成長了 60%。集團內部低利潤產品的淘汰部分抵銷了成長領域的影響。

Within our Connectivity segment, sales were down $1 million or 3% in the first quarter of 2021 versus the same quarter of 2020. While we continue to be impacted by year-over-year comparison related to the commercial aerospace market, we saw a partial rebound in the end market versus the fourth quarter of 2020. And looking at that trend from the fourth quarter of 2020 to the first quarter of 2021, commercial aerospace increased by $1.2 million or 57% and payoffs through distribution by $3 million or 30%.

在我們的連結領域，2021 年第一季的銷售額與2020 年同期相比下降了100 萬美元，即3%。雖然我們繼續受到與商業航空航太市場相關的同比比較的影響，但我們看到部分與2020 年第四季相比，終端市場出現反彈。從2020 年第四季到2021 年第一季的趨勢來看，商用航空航太增加了120 萬美元，即57%，透過分銷獲得的收益增加了300 萬美元，即30%。

Sales within Magnetic Solutions business were fairly consistent as compared to the first quarter of 2020. We have strong bookings in this segment over the past 2 quarters, and our production team is working through some challenges on material and labor availability in order to accommodate these increases in demand.

與2020 年第一季相比，磁性解決方案業務的銷售額相當穩定。過去兩個季度，我們在該領域的預訂量很大，我們的生產團隊正在應對材料和勞動力可用性方面的一些挑戰，以適應這些成長需求。

Overall, our margins were down in the first quarter of 2021, preliminarily driven by the industry-wide material shortages resulting in higher material costs. Labor costs also continue to rise as labor availability in China has been impacted by the lack of traditional workers migrating during Chinese New Year holidays as a result of the pandemic this year.

整體而言，我們的利潤率在 2021 年第一季有所下降，初步原因是全行業材料短缺導致材料成本上升。勞動成本也持續上升，因為今年的疫情導致農曆新年期間傳統工人外出工作的情況受到影響，中國的勞動力供應受到影響。

Our core saving initiatives from prior years have mitigated a higher cost to a certain extent, and the remaining impact has significantly been addressed through price increases to all our customers. We anticipate the price increases, the majority of these increases, to go in effect during the second quarter and third quarter of 2021.

我們前幾年的核心節約措施在一定程度上減輕了較高的成本，而剩餘的影響已透過向所有客戶提高價格而得到了顯著解決。我們預計價格上漲（其中大部分上漲）將在 2021 年第二季和第三季生效。

On the acquisition front, our first acquisitions of rms -- our first quarter acquisitions of rms and EOS have both been run smoothly and integrated has been proceeding planned. It is encouraging to see that rms was accretive to Bel's results in the first quarter of 2021, and we anticipate EOS to be immediately accretive to our results in the second quarter.

在收購方面，我們對 rms 的首次收購——我們第一季對 rms 和 EOS 的收購都進展順利，整合已經在計劃中進行。令人鼓舞的是，rms 為 Bel 在 2021 年第一季的業績帶來了成長，我們預計 EOS 將立即為我們第二季的業績帶來成長。

Our backlog of orders was $234 million as March 31 and we reached $264 million by the end of April, a strong indicator of top line growth for the balance of year-on-year.

截至 3 月 31 日，我們的積壓訂單為 2.34 億美元，到 4 月底達到 2.64 億美元，這是營收年增的有力指標。

Our ability to fulfill orders of the books will be dependent on the availability of materials and labor. We will keep a close eye on costs and availability of raw materials and your right to labor in order to service our customers as timely as possible.

我們履行書籍訂單的能力將取決於材料和勞動力的可用性。我們將密切關注原材料的成本和可用性以及您的勞動力權利，以便盡可能及時為我們的客戶提供服務。

I would like to now turn the call over to Craig to go over the financial update. Craig?

我現在想把電話轉給克雷格，了解最新的財務狀況。克雷格？

Thanks, Dan. Sales by product segment for the first quarter of 2021 were as follows; Power Solutions and Protection sales were $43.6 million, up 20.6% from last year's first quarter; Connectivity Solutions sales were $38.1 million, a decline of 2.7%; and Magnetic Solutions sales were $28.9 million, largely the same as last year's first quarter.

謝謝，丹。 2021年第一季依產品部門劃分的銷售額如下：電源解決方案和保護銷售額為 4,360 萬美元，比去年第一季成長 20.6%；連接解決方案銷售額為 3,810 萬美元，下降 2.7%； Magnetic Solutions 的銷售額為 2,890 萬美元，與去年第一季基本持平。

Preliminary gross margin by product segment for the first quarter of 2021 was as follows: Power Solutions and Protection had a gross margin of 24.7% in the first quarter of 2021, up slightly from 24.3% in last year's first quarter; Connectivity Solutions gross margin was 25.7%, down from 28.6% in the 2020 quarter; and Magnetic Solutions gross margin was 13.7%, down from 21.2% in last year's first quarter.

2021年第一季按產品細分的初步毛利率如下： 電源解決方案與保護2021年第一季毛利率為24.7%，略高於去年第一季的24.3%；連接解決方案毛利率為 25.7%，低於 2020 年季度的 28.6%； Magnetic Solutions 毛利率為 13.7%，低於去年第一季的 21.2%。

On a consolidated basis, gross profit margin decreased to 21.9% in the first quarter of 2021 as compared with 24.8% in the first quarter of 2020. Gross margin during the first quarter of 2021 was impacted by industry-wide increases on raw material pricing and higher labor costs driven by wage increases and an unfavorable foreign exchange fluctuation.

綜合來看，2021 年第一季的毛利率下降至 21.9%，而 2020 年第一季為 24.8%。2021 年第一季的毛利率受到全行業原物料價格上漲和工資上漲和不利的外匯波動導致勞動成本上升。

Well implemented price increases to its customers and distribution partners to offset these higher input costs, with many of those price increases taking effect in the second quarter. The margin comparisons were also affected by $2.2 million in COVID-related subsidies received in last year's first quarter that did not repeat.

對其客戶和分銷合作夥伴實施了良好的提價，以抵消這些較高的投入成本，其中許多漲價在第二季生效。利潤率比較也受到去年第一季收到的 220 萬美元與新冠病毒相關的補貼的影響，該補貼並未重複。

Research and development costs were $5 million during the first quarter of 2021, a decline of $1.1 million from the first quarter of 2020, primarily due to the closure of our Switzerland R&D facility in mid-2020.

2021 年第一季的研發成本為 500 萬美元，比 2020 年第一季減少 110 萬美元，主要是由於我們的瑞士研發設施於 2020 年中期關閉。

Our selling, general and administrative expenses were $21 million or 19% of sales, up slightly from a dollar perspective from the first quarter last year.

我們的銷售、一般和管理費用為 2,100 萬美元，佔銷售額的 19%，從美元角度來看，比去年第一季略有上升。

SG&A salaries and fringe benefits were $1.4 million higher as compared to the first quarter of 2020. These costs were partially offset by a reduction in commissions and other selling costs of $632,000 and lower travel expenses of $416,000.

與 2020 年第一季相比，SG&A 工資和附加福利增加了 140 萬美元。這些成本被佣金和其他銷售成本減少 632,000 美元以及差旅費用減少 416,000 美元部分抵消。

During the first quarter of 2021, we closed on the sale of a property in Hong Kong. This transaction resulted in a gain of $6.2 million, which is included in our first quarter results. These factors resulted in income from operations of $4.5 million in the first quarter of 2021 as compared to a loss from operations of $1.1 million in the first quarter of 2020.

2021 年第一季度，我們完成了香港一處房產的出售。此次交易帶來了 620 萬美元的收益，該收益已計入我們第一季的業績中。這些因素導致 2021 年第一季的營運收入為 450 萬美元，而 2020 年第一季的營運虧損為 110 萬美元。

Other income and expense net was an income of $546,000 for the first quarter of 2021 as compared to an expense of $2.1 million during the first quarter of 2020. The expense in the first quarter of 2020, largely related to a $2 million loss on the company's SERP investments, which are included in this line item.

其他收入和支出淨額為 2021 年第一季的收入 546,000 美元，而 2020 年第一季的支出為 210 萬美元。2020 年第一季的支出主要與公司 200 萬美元的虧損有關SERP 投資，包含在此行項目中。

Interest expense was $800,000 in the first quarter of 2021, down from $1.4 million in the same quarter last year. As a result, decreases in both LIBOR, the company's spread on its credit facility driven by EBITDA improvements and the overall reduction in our outstanding debt balance.

2021 年第一季的利息支出為 80 萬美元，低於去年同期的 140 萬美元。因此，由於 EBITDA 改善和未償債務餘額整體減少，倫敦銀行間同業拆借利率（LIBOR）、公司信貸便利利差均出現下降。

We had a provision for income taxes of $1 million in the first quarter of 2021 compared to a benefit of $772,000 during last year's first quarter. The benefit in the first quarter of 2020 reflected a reduction in GILTI tax and tax benefits associated with the CARES Act.

我們在 2021 年第一季的所得稅準備金為 100 萬美元，而去年第一季的福利為 772,000 美元。 2020 年第一季的收益反映了 GILTI 稅收和與 CARES 法案相關的稅收優惠的減少。

Earnings per share for Class A common shares was earnings of $0.24 per share in the first quarter of 2021 as compared with a loss of $0.30 per share in the first quarter of 2020. Earnings per share for the Class B common shares was earnings of $0.26 per share in the first quarter of 2021 as compared with a loss of $0.31 per share in the first quarter of 2020.

2021 年第一季 A 類普通股每股收益為 0.24 美元，而 2020 年第一季每股虧損 0.30 美元。B 類普通股每股收益為 0.26 美元。2021 年第一季每股虧損0.31 美元，而2020 年第一季每股虧損0.31 美元。

On a non-GAAP basis, which excludes certain unusual and other nonrecurring items, EPS for Class A shares was a loss of $0.23 per share in the first quarter of 2021 as compared with a loss of $0.28 per share in the first quarter of 2020. On a non-GAAP basis, EPS for Class B shares was a loss of $0.23 per share in the first quarter of 2021. That's compared with a loss of $0.29 per share in the first quarter of 2020.

依照非公認會計準則（不包括某些異常項目和其他非經常性項目）計算，2021 年第一季A 類股每股收益為每股虧損0.23 美元，而2020 年第一季為每股虧損0.28美元。根據非公認會計準則計算，2021 年第一季 B 類股的每股收益為每股虧損 0.23 美元。相較之下，2020 年第一季每股虧損 0.29 美元。

And now I'd like to go through some balance sheet and cash flow items. Our cash and cash equivalents balance at March 31, 2021 was $74 million, a decrease of $10.9 million from December 31, 2020.

現在我想查看一些資產負債表和現金流量項目。截至2021年3月31日，我們的現金及現金等價物餘額為7,400萬美元，比2020年12月31日減少1,090萬美元。

During the first quarter of 2021, we made net payments of $16 million in connection with the acquisitions of rms and EOS, $1.5 million towards our outstanding debt balance and used cash for capital additions of $1.2 million, dividend payments of $815,000 and interest payments of $627,000. These items were partially offset by cash flows generated from operating activities of $3 million and $6.7 million in proceeds received from the sale of property.

2021 年第一季度，我們與收購rms 和EOS 相關的淨付款為1600 萬美元，為未償債務餘額支付了150 萬美元，並使用現金用於增資120 萬美元，支付股息815,000 美元，支付利息627,000 美元。這些項目被經營活動產生的 300 萬美元現金流和出售財產收到的 670 萬美元收益部分抵銷。

Accounts receivable were $74.1 million at March 31, 2020 as compared with $71.4 million at December 31, 2020. The primary driver of the increase related to the 2021 acquisitions of rms and EOS, which added $3.1 million to our receivable balance.

截至2020 年3 月31 日，應收帳款為7,410 萬美元，而截至2020 年12 月31 日，應收帳款為7,140 萬美元。成長的主要推動力與2021 年收購rms 和EOS 相關，這使我們的應收帳款餘額增加了310 萬美元。

Days sales outstanding increased to 60 days at March 31, 2021 as compared to 57 days at December 31, 2020.

截至2021年3月31日，應收帳款天數增加至60天，2020年12月31日為57天。

Inventories were $106.7 million at March 31, 2021, up $6.6 million from December 31, 2020. The increase we've seen in raw materials and work in progress, and was largely due to the inclusion of $5.3 million from the 2021 acquired companies.

截至 2021 年 3 月 31 日，庫存為 1.067 億美元，比 2020 年 12 月 31 日增加 660 萬美元。我們看到原材料和在製品的增加，主要是由於納入了 2021 年收購公司的 530 萬美元。

Accounts payable were $42.5 million at March 31, 2021, up $2.7 million from its level at December 31, 2020. The 2021 acquired companies accounted for $2.2 million of this increase from the year-end level.

截至 2021 年 3 月 31 日，應付帳款為 4,250 萬美元，較 2020 年 12 月 31 日的水準增加 270 萬美元。2021 年收購的公司佔年末水準增加的 220 萬美元。

Sales outstanding debt balance was $114.3 million as of March 31, 2021, net of deferred financing costs, a decrease of $1.3 million since the 2020 year end balance.

截至 2021 年 3 月 31 日，銷售未償債務餘額為 1.143 億美元，扣除遞延融資成本，較 2020 年年末餘額減少 130 萬美元。

Book value per share, which is calculated as stockholders' equity divided by our combined A and B classes of common stock outstanding, was $15.09 per share at March 31, 2021 as compared to $15.04 per share at December 31, 2020.

每股帳面價值（計算方法為股東權益除以A 類和B 類已發行普通股的總和），截至2021 年3 月31 日為每股15.09 美元，而2020 年12 月31 日為每股15.04 美元。

And with that, I'll turn the call back over to Dan. Dan?

然後，我會將電話轉回給丹。擔？

Thank you, Craig. Jennifer, we'd like to open up the call for questions now, if possible.

謝謝你，克雷格。詹妮弗，如果可能的話，我們現在想開始提問。

(Operator Instructions) And we'll go first to Theodore O'Neill with Litchfield Build Research.

（操作員說明）我們將首先聯絡 Litchfield Build Research 的 Theodore O'Neill。

My first question is about the e-mobility market, which is getting an awful lot of discussion this quarter. Could you give us an idea about, is it scooters? Is it bikes? Is it both? Do you see any regional differences in the market? And how big do you think the opportunity could be?

我的第一個問題是關於電動車市場，本季該市場引起了很多討論。您能否給我們一個想法，這是踏板車嗎？是自行車嗎？兩者都是嗎？您認為市場存在區域差異嗎？您認為機會有多大？

I think at this time, it's too early to measure the opportunity. What our niche is, we're not really focused on the automotive market at all. We do some good business from a circuit protection business. But the growth that we got from e-mobility mobility, we're focusing on now, is the business that we do from our Power group. And what we're looking at are niche markets.

我認為現在衡量機會還為時過早。我們的利基市場是什麼，我們根本沒有真正關注汽車市場。我們的電路保護業務做得很好。但我們現在關注的電動車業務的成長是我們 Power 團隊所做的業務。我們正在關注的是利基市場。

So basically, a post office, school buses, sanitation, mining equipment. So very specific niche markets where they're moving to electric vehicles. Again, we think the opportunity should have substantial growth, at least in the next 5 to 6 years. And again, that's what the areas we're focusing on, specifically niche markets, also voting charging markets also.

基本上，有郵局、校車、衛生設施、採礦設備。因此，他們正在轉向電動車的非常具體的利基市場。同樣，我們認為機會應該會大幅成長，至少在未來 5 到 6 年內是如此。再說一遍，這就是我們關注的領域，特別是利基市場，還有投票收費市場。

Okay. It's not scooters and e-bikes?

好的。不是踏板車和電動自行車嗎？

No. Absolutely not. But Theo, if you can -- I can give you a -- we did do a business where a company called StreetScooter that was building mailbox deliveries in Europe. So more of a government-specific requirement type of situation, but nothing that's mass market.

不，絕對不是。但是西奧，如果可以的話——我可以給你一個——我們確實做過一家名為 StreetScooter 的公司，該公司在歐洲建立郵箱遞送服務。因此，更多的是政府特定要求類型的情況，而不是大眾市場。

Okay. The -- you've mentioned in the prepared remarks that you've seen an uptick in commercial aviation business. How -- I mean, I guess that was probably pretty low, but how much more headroom do you have on the commercial aviation business, if we get back to something looking approaching normal?

好的。您在準備好的發言中提到，您看到商業航空業務有所成長。我的意思是，我想這可能相當低，但是如果我們回到看起來接近正常的情況，商業航空業務還有多少發展空間？

I mean what's normal? Again, I think if you look, again, from what we understand that you do see with Airbus receiving a big order last week from Delta, I believe. So -- and you see -- I can't mention anybody else.

我的意思是什麼是正常的？再說一次，我認為，如果你再看一遍，根據我們的了解，你確實會看到空中巴士公司上週從達美航空收到了一份大訂單，我相信。所以——你看——我不能提及其他任何人。

So we do see opportunities. But again, if you look at -- my hands are kind of tied because of agreements. So basically, it can't get much lower. So we do see consistent improvement in aerospace for the next 3 to 4 years till we get back to normal from all the research that we've read.

所以我們確實看到了機會。但同樣，如果你看一下——我的雙手因為協議而被束縛。所以基本上，它不能再低了。因此，我們確實看到航空航太業在未來 3 到 4 年內將持續改善，直到我們從所讀到的所有研究中恢復正常。

Okay. I like that answer.

好的。我喜歡這個答案。

If you want, I can certainly comment on the broader commercial aerospace end market that was...

如果您願意，我當然可以評論更廣泛的商業航空航天終端市場…

Go ahead, Lynn.

繼續吧，林恩。

So as we see in the fourth quarter, our total commercial aerospace sales, and this is direct, this is not through distribution, was around $2.1 million. And in the first quarter, we saw that go up to $3.3 million.

正如我們在第四季度看到的，我們的商業航空航天總銷售額（這是直接的，不是透過分銷的）約為 210 萬美元。在第一季度，我們看到這數字高達 330 萬美元。

So definitely some recovery here. But to put it in perspective, last year's first quarter, we were at $5.1 million. So it's definitely a partial recovery at this point and we anticipate it being -- along runway, no pun intended, in getting back to that normal that we had.

所以這裡肯定會有一些恢復。但客觀來看，去年第一季我們的營收為 510 萬美元。因此，目前這肯定是部分恢復，我們預計它會沿著跑道，沒有雙關語的意思，恢復到我們的正常狀態。

And also, you should know that we are picking up the benefit of our new acquisition, rms, which is dedicated to the aerospace industry also.

而且，您應該知道，我們正在從新收購的 rms 中獲益，該公司也致力於航空航太業。

We'll go next to Jim Ricchiuti with Needham & Company.

接下來我們將與 Needham & Company 的 Jim Ricchiuti 交流。

I just wanted to pursue the increase in backlog. So I think you guys reported in your K, you had a backlog at the end of February of around $180 million. So this is a big increase.

我只是想追求積壓的增加。所以我想你們在 K 中報告說，你們在 2 月底的積壓訂單約為 1.8 億美元。所以這是一個很大的成長。

And I'm just wondering if you could maybe talk a little bit about which areas, which segments? I mean, you alluded to the demand, I think, in e-mobility, but I wonder if you could talk a little bit more broadly about where you're seeing the business recover so strongly? And how does this compare with some other cycles?

我只是想知道您是否可以談談哪些領域、哪些細分市場？我的意思是，我認為您提到了電動車領域的需求，但我想知道您是否可以更廣泛地談談您在哪些方面看到業務復甦如此強勁？這與其他一些週期相比如何？

Every cycle is kind of unique, but this is truly broad-based if we took out commercial aerospace. Each one of our product groups are seeing some good substantial increases, that is dependent on where the lead times are.

每個週期都是獨特的，但如果我們考慮到商業航空航天，那麼這確實是具有廣泛基礎的。我們的每個產品組都看到了一些良好的實質成長，這取決於交貨時間。

Currently, our Power group has the longest lead times of any products because they do use semiconductors. So those lead times that went from 12 to 14 weeks up to 32 weeks. So we've seen that be stretched out. And so that really helped increase the backlog.

目前，我們的電源團隊在所有產品中擁有最長的交貨時間，因為它們確實使用半導體。因此，交付週期從 12 至 14 週延長至 32 週。所以我們已經看到它被拉長了。這確實有助於增加積壓。

Our concern at this point is -- historically, is there double ordering taking place because of the long lead times and material shortages, and that's what we have to monitor.

我們目前擔心的是——從歷史上看，是否會因為交貨時間長和材料短缺而發生雙重訂購，這就是我們必須監控的。

But it's -- again, it's -- if you look at our customers and the different types of products, the -- our fuse product line is not our biggest product line by far in a way, but it does have the glorious customer base because it goes into so many different markets, and that's a great sign and same with our distribution business. That our distributors sell to industrial, commercial, networking, computing, you name it, security, medical.

但是，如果你看看我們的客戶和不同類型的產品，我們的保險絲產品線在某種程度上並不是我們迄今為止最大的產品線，但它確實擁有光榮的客戶群，因為它進入瞭如此多的不同市場，這是一個很好的跡象，對於我們的分銷業務也是如此。我們的經銷商向工業、商業、網路、運算、安全、醫療等領域銷售產品。

And every one of these markets, we see strength out there. Again, our only concern is that double booking occurring because of a long lead time and people can't get parts and possibly our other suppliers.

我們在每一個市場中都看到了其實力。同樣，我們唯一擔心的是，由於交貨時間長而導致重複預訂，人們無法獲得零件，也可能無法獲得我們的其他供應商。

Yes. I mean you're anticipating my next question. And how do you monitor? You've improved so many of these periods like this? And is there any better way to monitor it than, say, in the past, when sometimes you guys are caught off guard?

是的。我的意思是你在期待我的下一個問題。您如何監控？這樣的時期你進步了這麼多嗎？有沒有比過去更好的方法來監控它，例如過去，有時你們會措手不及？

But historically, you try to say there's noncancelable orders, say that you need payment upfront situations like that, that you look at and you try to work through depending on your contract agreements that you have with customers.

但從歷史上看，你試圖說存在不可取消的訂單，說你需要預付款這樣的情況，你會根據與客戶簽訂的合約協議來查看並嘗試解決。

So again, you just try to hit it, someone has to pay up. If you really want the parts, are you going to pay a premium for delivery? What -- and how much do you want to pay upfront to guarantee delivery? So those are the things that you can look at and also noncancelable orders, and that could help also.

再說一遍，你只要嘗試擊中它，就必須有人付出代價。如果你真的想要這些零件，你會支付額外的運費嗎？您想要預付什麼費用以確保交貨？因此，這些是您可以查看的內容以及不可取消的訂單，這也可能有所幫助。

Sure. Got it. Are you guys seeing any signs that the component constraints are potentially a risk factor just for some of your customers because of their own supply chain challenges, which might -- pretend -- might lead to some disruption?

當然。知道了。你們是否看到任何跡象表明，由於某些客戶本身的供應鏈挑戰，組件限制可能成為潛在的風險因素，這可能（假裝）可能會導致一些中斷？

No. We see some slightness of that. We're taking our parts if we're not getting all the parts in to build a finished product.

不，我們看到了一些輕微的情況。如果我們沒有將所有零件都用於製造成品，我們就會拿走我們的零件。

So trying to push us off. But the problem you have with that situation then is because there's such a demand from our other customers, if a customer tries to push back our product, that we achieve, we can send it to another customer and they lose it. We're not going to accept push-outs if we have other customers for those products.

所以試著把我們推開。但這種情況下的問題是，因為我們其他客戶有這樣的需求，如果客戶試圖推遲我們的產品，我們可以將其發送給另一個客戶，然後他們就會失去它。如果我們有其他客戶購買這些產品，我們不會接受退出。

So that's -- so basically, if you're a aggressive customer, you're going to take the parts in and wait the extra 4 to 6 weeks till the other parts come in or you might lose all your parts. Does that make sense?

所以基本上，如果您是一位激進的客戶，您將接收零件並等待額外的 4 到 6 週，直到其他零件到達，否則您可能會丟失所有零件。那有意義嗎？

Got it. And I'll jump back in the -- yes, it does. It does. And one more question, I'll jump back in the queue. The SG&A was a bit higher than I think you guys were indicating back in the last call, I think you said around $19 million to $20 million.

知道了。我會跳回來——是的，確實如此。確實如此。還有一個問題，我會跳回隊列。 SG&A 比我認為你們在上次電話會議中表示的要高一些，我想你們說的大約是 1900 萬到 2000 萬美元。

So is this a level that we think you're going to see going forward and probably it trends up with the growth in sales that you're expecting?

那麼，我們認為您未來會看到這個水平，並且可能會隨著您預期的銷售成長而上升嗎？

Craig, can you answer that?

克雷格，你能回答一下嗎？

Yes. I think you're right, Jim. The -- I think it will trend up a little bit just because of maybe the increased activity related to travel and stuff like that in the future quarters.

是的。我認為你是對的，吉姆。我認為它會呈上升趨勢，只是因為未來幾季與旅行等相關的活動可能會增加。

We'll also have some incremental expense coming from EOS that basically joined Bel right at the end of the quarter. So we'll have a little bit of an uptick there.

我們還將有一些來自 EOS 的增量費用，這些費用基本上在本季結束時加入 Bel。所以我們會有一點上升。

We'll go next to Hendi Susanto with Gabelli Funds.

接下來我們將討論 Gabelli Funds 的 Hendi Susanto。

First question. Dan, I saw you talk about price increase that will take place in Q2 and Q3. Would you be able to pass like 100% of the price increase? Or is there some like sharing component into your discussion with your customers?

第一個問題。丹，我看到你談到第二季和第三季將發生的價格上漲。你能接受 100% 的漲價嗎？或者在與客戶的討論中是否有一些類似的分享內容？

There's always sharing with our customers. But I think our goal, and I think it's industry-wide, it's not us. So I think we do look at each customer, we do look at what our competitors are doing. But across the board, I think we're trying to implement a 5% to 12% price increase depending on where the product sits on the fence.

始終與我們的客戶分享。但我認為我們的目標是整個產業的目標，而不是我們。所以我認為我們確實關注每個客戶，我們確實關注我們的競爭對手在做什麼。但總的來說，我認為我們正在嘗試將價格上漲 5% 到 12%，具體取決於產品的立場。

Again, it's a new product that's just been introduced. We probably only look for a 5% increase, but a mature product that's been beaten up over many years. We have to increase it probably closer to 8% to 10% to improve the margins.

再說一遍，這是剛推出的新產品。我們可能只尋求5%的成長，但這是一個經過多年打擊的成熟產品。我們必須將其提高到接近 8% 至 10%，才能提高利潤率。

And as you know, we have walked away from products -- sorry, we have walked away in the past year on products that do have low margins where the customers do not accept our price increases.

如你所知，我們已經放棄了產品——抱歉，我們在過去的一年裡放棄了利潤率低、客戶不接受我們漲價的產品。

Okay. And then in terms of gross margin expectation for this year. Last year, you did improve gross margin quite significantly. And with raw material cost increase and price increase, what are the puts and takes on your gross margin for 2021?

好的。然後是今年的毛利率預期。去年，你們的毛利率確實顯著提高了。隨著原物料成本的上漲和物價的上漲，你們2021年的毛利率是多少？

I think, Craig. I think that's a good question for Farouq. What do you say, Craig?

我想，克雷格。我認為這對法魯克來說是一個很好的問題。你說什麼，克雷格？

Yes. Yes. I approve, to address that one.

是的。是的。我同意解決這個問題。

Yes. So Hendi, nice speaking with you here today. So from a gross margin perspective, obviously, we saw the dip, but as it was alluded to in the open commentary, last year's gross margin was aided by a little bit of kind of one-off government subsidies adjustments.

是的。 Hendi，很高興今天在這裡與您交談。因此，從毛利率的角度來看，顯然我們看到了下降，但正如公開評論中提到的那樣，去年的毛利率受到了一些一次性政府補貼調整的幫助。

So I think the -- when we look it at an organic or adjusted basis, the delta is not as wide. With that being said, I think the overarching theme, that's a number we're laser-focused on. And to Dan's -- also, the comments that he made, we are seeing some of this -- we're doing pricing raw material increases.

所以我認為，當我們從有機或調整的基礎來看時，三角洲就沒那麼寬。話雖如此，我認為最重要的主題是我們重點關注的數字。對於丹的——還有他發表的評論，我們看到了其中的一些——我們正在提高原材料的定價。

So we are monitoring that situation closely. Obviously, we're trying to prevent that from dropping to the gross margin line in addition to our other, call it, organic focus on it. Does that answer your question, Hendi?

因此，我們正在密切關注這一情況。顯然，除了我們對它的有機關注之外，我們還試圖防止其下降到毛利率線。這能回答你的問題嗎，亨迪？

Okay. And then last question from -- yes. Dan, do you have any insight into IT hardware. Many companies talk about substantial recovery in the second half of 2021. And then I'm wondering what your takes and insight into data center or IT hardware market?

好的。最後一個問題是──是的。 Dan，你對 IT 硬體有什麼見解嗎？許多公司都在談論2021年下半年的大幅復甦。那麼我想知道您對資料中心或IT硬體市場的看法和見解是什麼？

Again, the hardware, we still haven't seen much -- I mean, that's the only area that we -- our backlog is very strong on those products. But we haven't seen the Ciscos, the Siemens, some of these companies out there, we really haven't seen much bullish behavior from them.

同樣，在硬體方面，我們仍然沒有看到太多——我的意思是，這是我們——我們在這些產品上的積壓非常強大的唯一領域。但我們還沒有看到思科、西門子等一些公司，我們確實沒有看到他們有太多的看漲行為。

Data has been strong for us. I don't think the data farms have cut back at all. So we do have opportunities that we are addressing in certain countries.

數據對我們來說非常強大。我認為數據農場根本沒有減少。因此，我們確實在某些國家面臨機會。

Again, looking at niche markets, not the Facebooks, the Amazons and Microsofts of the world, but the second-tier type of customers, where we feel that we can offer a benefit with our technology and our service.

再次，我們著眼於利基市場，不是世界上的 Facebook、亞馬遜和微軟，而是二線客戶，我們認為我們可以透過我們的技術和服務為這些客戶帶來好處。

And at this time, we have no further questions, and that will terminate this conference call. Thank you for participating.

目前，我們沒有進一步的問題，這將終止本次電話會議。感謝您的參與。

Thank you for joining us today.

感謝您今天加入我們。