Bel Fuse Inc (BELFB) 2023 Q3 法說會逐字稿

Good morning and welcome to the Bel Fuse Third Quarter 2023 Earnings Conference Call. (Operator Instructions) A brief question-and-answer session will follow the formal presentation. (Operator Instructions) As a reminder, this conference is being recorded.

早安，歡迎參加 Bel Fuse 2023 年第三季財報電話會議。 （操作員說明）正式示範之後將進行簡短的問答環節。 （操作員指示）謹此提醒，本次會議正在錄製中。

I would now like to turn the call over to Jean Marie Young with Three Part Advisors. Please proceed.

我現在想將電話轉給讓·瑪麗·楊（Jean Marie Young）和三部分顧問。請繼續。

Thank you, Latanya, and good morning, everyone. Before we begin, I'd like to remind everyone that during today's conference call, we will make statements relating to our business that will be considered forward-looking statements under federal securities laws, such as statements regarding the company's expected operating and financial performance for future periods, including guidance for future periods in 2023.

謝謝拉塔尼亞，大家早安。在開始之前，我想提醒大家，在今天的電話會議中，我們將發表與我們業務相關的聲明，根據聯邦證券法，這些聲明將被視為前瞻性聲明，例如有關公司預期運營和財務業績的聲明未來時期，包括 2023 年未來時期的指導。

These statements are based on the company's current expectations and reflect the company's views only as of today and should not be considered representative of the company's views as of any subsequent date. The company disclaims any obligation to update any forward-looking statements or outlook.

這些陳述是基於公司目前的預期，僅反映公司截至目前的觀點，不應被視為代表公司截至任何後續日期的觀點。本公司不承擔更新任何前瞻性陳述或展望的義務。

Actual results for future periods may differ materially from those projected by these forward-looking statements due to a number of risks, uncertainties and other factors. These material risks are summarized in the press release that we issued after market close yesterday. Additional information about the material risks and other important factors that could potentially impact our financial performance and cause actual results to differ materially from our expectations is discussed in our filings with the Securities and Exchange Commission, including our most recent annual report on Form 10-K for the fiscal year ended December 31, 2022, and our quarterly reports and other documents that we have filed or may file with the SEC from time to time.

由於許多風險、不確定性和其他因素，未來期間的實際結果可能與這些前瞻性陳述預測的結果有重大差異。這些重大風險在我們昨天收盤後發布的新聞稿中進行了總結。我們向美國證券交易委員會提交的文件中討論了有關重大風險和其他重要因素的更多信息，這些風險和其他重要因素可能會影響我們的財務業績並導致實際結果與我們的預期存在重大差異，包括我們最新的10-K 表格年度報告截至 2022 年 12 月 31 日的財年，以及我們已向 SEC 提交或可能不時提交的季度報告和其他文件。

We may also discuss non-GAAP results during this call, and reconciliations of our GAAP results to non-GAAP results have been included in our press release. Our press release and our SEC filings are all available at the IR section of our website. Joining me on the call today is Dan Bernstein, President and CEO; Farouq Tuweiq, CFO; and Lynn Hutkin, Vice President of Financial Reporting and Investor Relations. With that, I'd like to turn the call over to Dan. Dan?

我們也可能在本次電話會議中討論非 GAAP 業績，並且我們的 GAAP 業績與非 GAAP 業績的對帳已包含在我們的新聞稿中。我們的新聞稿和 SEC 備案文件均可在我們網站的 IR 部分取得。今天與我一起參加電話會議的是總裁兼執行長 Dan Bernstein；法魯克‧圖維克，財務長；林恩‧哈特金 (Lynn Hutkin)，財務報告與投資者關係副總裁。說到這裡，我想把電話轉給丹。擔？

Yes. Thank you, Jean, and thank you for joining us on our call today. We are pleased with our results for the quarter. We continue to execute on our plan for growth and strategic improvement on profitability.

是的。謝謝你，吉恩，也謝謝你今天參加我們的電話會議。我們對本季的業績感到滿意。我們繼續執行我們的成長計劃和盈利能力的策略改進。

As discussed over the past several quarters, the team has taken a multipronged and balanced approach to the way we do business in terms of customers we serve, products we sell and markets we support and doing it all in a most cost-efficient manner. Our third quarter sales continue to be healthy, driven by oral patterns of our customers, whereby we saw different growth profiles across our diverse product offerings. We saw growth in certain markets such as defense, aerospace, e-mobility, rail that was offset in general industrial premises wary consumer.

正如過去幾季所討論的那樣，該團隊在我們服務的客戶、我們銷售的產品和我們支持的市場方面採取了多管齊下、平衡的方式開展業務，並以最具成本效益的方式開展這一切。在客戶口頭模式的推動下，我們第三季的銷售持續保持健康，我們在不同的產品系列中看到了不同的成長。我們看到國防、航空航太、電動車、鐵路等某些市場的成長，但被一般工業場所謹慎的消費者所抵銷。

On the distribution side of the business, we see some pockets of growth however, the distribution channel continues to have elevated levels of inventory that affected our new audits. As we look at our top line trend, it's important to remember that we are an engineered driven company first. We've been successful in supporting demolished technology for over 70 years, and this is a testament to our ability to work closely with our customers, engineers.

在業務的分銷方面，我們看到了一些成長，但分銷管道的庫存水準持續升高，影響了我們的新審計。當我們審視我們的營收趨勢時，重要的是要記住，我們首先是一家工程驅動的公司。 70 多年來，我們一直成功地支援拆除技術，證明了我們與客戶、工程師密切合作的能力。

In developing the future products, there's a value associated with that. A few years ago we were eager to support all customers at all cost, allowing us to engage in projects we felt a worthwhile pursuit, but which it turns to a less than great outcome for us. To be clear, our priority and focus would be along with customers who value the quality and technology of our price, and we're not solely focused on price. We no longer have a problem walking away from these sales that fell below our gross margin requirements. It allows our engineers to work on more meaningful, desired and open space in the factory 4 to support our growing end markets such as e-mobility, medical, industrial and rail.

在開發未來產品時，存在著與之相關的價值。幾年前，我們渴望不惜一切代價支持所有客戶，使我們能夠參與我們認為值得追求的項目，但結果對我們來說並不是很好。需要明確的是，我們的首要任務和重點是與重視我們價格的品質和技術的客戶一起，我們不僅僅關注價格。我們不再有問題放棄這些低於我們毛利率要求的銷售。它使我們的工程師能夠在工廠 4 中開發更有意義、更理想的開放空間，以支援我們不斷增長的終端市場，例如電動車、醫療、工業和鐵路。

Our internal model in 2023 is building a better Bel, and this touches all areas of our business: HR, finance, product development, business development, procurement and manufacturing. There isn't a single function or department within the organization that doesn't have improved initiative to take place. Our collective actions have resulted in improved profitability and increased cash generation.

2023 年我們的內部模型是建立更好的貝爾，這涉及我們業務的所有領域：人力資源、財務、產品開發、業務開發、採購和製造。組織內沒有一個職能或部門沒有改善主動性。我們的集體行動提高了獲利能力並增加了現金產生。

This gives us financial flexibility to continue to explore various growth, and capital acceptation strategies, which could include a potential stock buyback subject to market conditions, evaluation of acquisitions and other strategic initiatives to support future growth of the company.

這使我們能夠在財務上靈活地繼續探索各種成長和資本接受策略，其中可能包括根據市場條件進行潛在的股票回購、收購評估以及其他支持公司未來成長的策略舉措。

As we approach our 75th anniversary on January 11, 2024, it is exciting to see the recent market cultural shifts that have taken place internally and the level of energy and dedication put forth by our global team as we deliver better value to our customers, shareholders and associates. With that said, I'd now like to turn the call to Lynn to provide our financial update.

2024 年1 月11 日是我們成立75 週年紀念日，我們很高興看到最近內部發生的市場文化轉變，以及我們的全球團隊在為客戶、股東提供更好價值的過程中所表現出的精力和奉獻精神和同事。話雖如此，我現在想打電話給林恩，以提供我們的最新財務資訊。

Thank you, Dan. From a financial perspective, sales were fairly stable for our Connectivity and Power segments as compared to the third quarter of 2022, with the largest impact felt within our Magnetic segment. While the magnetic segment was down from Q3 '22, we did see an almost 20% rebound from a low point in Q2 '23.

謝謝你，丹。從財務角度來看，與 2022 年第三季相比，我們的連接和電源部門的銷售額相當穩定，其中磁性部門受到的影響最大。雖然磁性部分較 22 年第三季有所下降，但我們確實看到從 23 年第二季的低點反彈了近 20%。

Overall, third quarter 2023 sales were $159 million, as compared to $178 million in the third quarter of 2022. Of the $19 million decline, $8.4 million was attributable to reduced expedite fee revenue in 2023 quarter versus Q3 '22.

整體而言，2023 年第三季的銷售額為1.59 億美元，而2022 年第三季的銷售額為1.78 億美元。在1,900 萬美元的下降中，840 萬美元歸因於2023 年季度的加急費用收入與22 年第三季相比減少。

Gross margin continued to increase on a year-over-year basis for 8 consecutive quarters and reached 35% as of the third quarter of 2023 as compared to 29% in last year's third quarter. Margin improvement continued and was led by favorable product mix and the successful execution of a variety of cost reduction and efficiency programs.

毛利率連續8季年比持續成長，截至2023年第三季達到35%，去年第三季為29%。利潤率持續改善，得益於良好的產品組合和成功執行各種成本降低和效率計劃。

By product group, Power Solutions and Protection sales for Q3 '23 were $74.9 million, down 2.1% from last year's third quarter. Within the Power Group, an $8 million decline in expedite fee revenue was largely offset by higher demand for our front and power products serving our networking end market.

按產品組劃分，23 年第三季電源解決方案和保護銷售額為 7,490 萬美元，比去年第三季下降 2.1%。在 Power Group 內部，加急費收入下降了 800 萬美元，這在很大程度上被服務於網路終端市場的前端和電源產品的更高需求所抵消。

Sales of our e-mobility products also remained strong and helped offset declines in circuit protection and distribution sales.

我們的電動車產品的銷售也保持強勁，有助於抵消電路保護和分銷銷售的下降。

Gross margin for our Power Group was 41.7% for the third quarter, a 930 basis point improvement from Q3 '22, primarily driven by a favorable shift in product mix, cost reduction efforts and favorable FX.

我們的電力集團第三季​​的毛利率為 41.7%，比 22 年第三季提高了 930 個基點，這主要是由於產品結構的有利轉變、成本削減努力和有利的匯率。

Our Connectivity Solutions group had sales of $51.8 million in the third quarter of 2023, an increase of 3% from last year's third quarter, with continued strength in defense and aerospace. Gross margin for this group came in at 35.8% for the third quarter of 2023, up from 26.1% in the third quarter of 2022.

我們的連接解決方案集團 2023 年第三季銷售額為 5,180 萬美元，比去年第三季成長 3%，國防和航空航太領域持續強勁。 2023 年第三季該集團的毛利率為 35.8%，高於 2022 年第三季的 26.1%。

Lastly, our Magnetic Solutions group had Q3 sales of $32 million, down 37.2% from last year's third quarter. Gross margin for this group was 22% in the third quarter of 2023 as compared to 30.4% during last year's third quarter. We are happy to report that $6.9 million shipped from the new BGX site in China during the third quarter of 2023.

最後，我們的磁性解決方案部門第三季銷售額為 3,200 萬美元，比去年第三季下降 37.2%。該集團 2023 年第三季的毛利率為 22%，而去年第三季為 30.4%。我們很高興地報告，2023 年第三季從中國的新 BGX 站點出貨了 690 萬美元。

At a consolidated level, our backlog of orders totaled $408 million at September 30. Historically, our backlog typically represented approximately 1 quarter's worth of sales when lead times for 8 to 12 weeks. Our current backlog levels continues to represent about 2.5 quarters' worth of sales, and we view this as still being kind. We expect our level of backlog to come back further in future quarters as lead times continued to normalize.

截至 9 月 30 日，我們的積壓訂單總計達 4.08 億美元。從歷史上看，當交貨時間為 8 至 12 週時，我們的積壓訂單通常約佔 1 個季度的銷售額。我們目前的積壓水平仍然佔銷售額的 2.5 個季度左右，我們認為這仍然是好的。我們預計，隨著交貨時間繼續正常化，我們的積壓水準將在未來幾季進一步回升。

Our consolidated book-to-bill ratio improved sequentially from 0.6% in Q2 '23 to 0.8% for Q3 '23. Our Q3 bookings within our commercial air end markets were $15.7 million, a new quarterly record high for us in this end market.

我們的綜合訂單出貨比從 2023 年第二季的 0.6% 連續改善至 23 年第三季的 0.8%。我們的商用主機市場第三季的預訂量為 1,570 萬美元，創下了我們在該終端市場的季度新高。

Our selling, general and administrative expenses for the third quarter of 2023 were $23.7 million or 14.9% of sales, up from $22.2 million or 12.5% of sales in the third quarter of last year. This increase was largely related to higher salaries and French benefits in the 2023 quarter partially offset by lower sales commissions.

2023 年第三季我們的銷售、一般及管理費用為 2,370 萬美元，佔銷售額的 14.9%，高於去年第三季的 2,220 萬美元，佔銷售額的 12.5%。這一增長很大程度上與 2023 年季度工資和法國福利的增加有關，但部分被銷售佣金的下降所抵消。

Turning to the balance sheet and cash flow items. We ended the quarter with a cash balance of $100.2 million as compared to $70.3 million at year-end. We generated $81.4 million in cash flow from operating activities during the first 9 months of 2023. With capital expenditures of $9.7 million, this resulted in free cash flow generation of $71.7 million for the first 9 months of 2023, an improvement of $53.3 million versus the same period of '22.

轉向資產負債表和現金流量項目。本季結束時，我們的現金餘額為 1.002 億美元，而年底為 7,030 萬美元。 2023 年前9 個月，我們透過經營活動產生了8,140 萬美元的現金流。由於資本支出為970 萬美元，因此2023 年前9 個月的自由現金流為7,170 萬美元，比去年同期增加了5,330萬美元。22 年同期。

Our inventory level decreased by $29.3 million from year-end, resulting in improved inventory turns of 2.9x during Q3 '23 versus 2.6x from year-end. While progress has been made on bringing inventory levels down, this remains a company-wide initiative to restore our inventory turns to better align with industry norms.

我們的庫存水準比年底減少了 2,930 萬美元，導致 23 年第三季的庫存週轉率提高了 2.9 倍，而去年年底為 2.6 倍。儘管在降低庫存水準方面取得了進展，但這仍然是全公司範圍內恢復庫存週轉以更好地符合行業規範的舉措。

Looking at the third quarter of 2023, we generated $40.8 million in cash flow from operating activities. This translated into free cash flow of $38.2 million during the third quarter. From a debt perspective, our outstanding balance remains at $60 million and is effectively subject to a fixed interest rate of 2.5% through our swap agreements that are in place through 2026. I'll now turn the call over to Farouq for additional commentary. Farouq?

展望 2023 年第三季度，我們的經營活動產生了 4,080 萬美元的現金流。這意味著第三季的自由現金流為 3,820 萬美元。從債務角度來看，我們的未償餘額仍為6000 萬美元，並且透過我們在2026 年實施的掉期協議，實際上受到2.5% 的固定利率的影響。我現在將把電話轉給法魯克以徵求更多評論。法魯克？

Yes. Thank you, Lynn. Over the past months, I've spent quite a bit of time visiting Bel facilities in Europe and in the Dominican Republic and what a big change I've seen from just one year ago. As I look at the mindset shift that has resulted in improved productivity and cost containment at the factory level, it has been nothing short of stellar.

是的。謝謝你，林恩。在過去的幾個月裡，我花了相當多的時間參觀了貝爾在歐洲和多明尼加共和國的設施，我看到了與一年前相比發生的巨大變化。當我看到思維方式的轉變導致工廠層面的生產力提高和成本控制時，它絕對是出色的。

We continue, though, to challenge our facilities to improve globally and expect big things from there. We also have been devoting a good amount of time on our material spend to ensure we are aligned with vendors appropriately, match for our size that we believe will ultimately result in a higher level of savings.

不過，我們將繼續挑戰我們的設施，在全球範圍內進行改進，並期待在那裡取得更大的成就。我們也投入了大量的時間在材料支出上，以確保我們與供應商保持適當的一致，與我們的規模相匹配，我們相信最終會帶來更高水準的節省。

Dan and I also attended our European sales meeting a few weeks back and believe it's in a great hand at charts its path forward to further penetrate Europe. On a side note, Europe has been a strong performer for us this year despite some of the challenges there, and we think there is more to be done in this region.

幾週前，丹和我還參加了我們的歐洲銷售會議，並相信它在規劃進一步滲透歐洲的道路方面發揮了重要作用。另一方面，儘管歐洲面臨一些挑戰，但今年對我們來說表現強勁，我們認為該地區還有更多工作要做。

Looking out to the fourth quarter, based on currently available information, we provided sales guidance in the range of $146 million to $154 million, with gross margins roughly in line with Q3 '23 levels.

展望第四季度，根據目前可獲得的信息，我們提供的銷售指引範圍為 1.46 億美元至 1.54 億美元，毛利率大致與 23 年第三季的水平一致。

In addition to some voluntary turning on the top line, as Dan mentioned, the channel continues to be over inventory, especially with our distributor of customers. We expect this situation will continue for another 2 quarters or so before it returns to normalcy though there are certain pockets of growth in the channel, which is good to see.

正如 Dan 所提到的，除了一些自願增加收入外，通路庫存仍然過剩，尤其是我們的客戶經銷商。我們預計這種情況將再持續兩個季度左右，然後才會恢復正常，儘管該管道有一定的成長，這是值得高興的。

From a supply chain perspective, there has been easing and availability of passive components, but we are still seeing longer lead times for others, mainly on the IC side.

從供應鏈的角度來看，被動元件的使用已經變得越來越容易和可用，但我們仍然看到其他元件的交貨時間更長，主要是在 IC 方面。

In summary, it's been a busy year on all fronts, the progress made in many areas of the organization. I'll reiterate my sentiment from prior quarters and that is that we are on this journey of continuous growth and improvement. Change is rarely linear or immediate. We do know we are building a healthy organization that's more focused on pursuit of growth and demanding operational excellence. These are all things that excite all of us. With that, I'll turn the call back over to Dan.

總而言之，今年在各方面都是忙碌的一年，組織在許多領域都取得了進展。我將重申我對前幾季的看法，即我們正處於持續成長和改​​進的旅程中。變化很少是線性的或立即的。我們確實知道我們正在建立一個健康的組織，更專注於追求成長和要求卓越的營運。這些都是令我們所有人興奮的事情。這樣，我會將電話轉回給丹。

Thank you, Farouq. And at this time, we would like to open up the call to any questions you might have.

謝謝你，法魯克。此時，我們願意開放電話詢問您可能有的任何問題。

(Operator Instructions) Our first question comes from Theodore O'Neill with Litchfield Hills Research.

（操作員說明）我們的第一個問題來自 Litchfield Hills Research 的 Theodore O'Neill。

Congratulations on a good quarter. Lynn, I know you said at the Jefferies conference that your debt is as low as it's going to get. But I was wondering if you could talk about either M&A or how you're going to deploy the capital because at the time of the conference, you didn't have $100 million in cash and you do now and you're talking about bringing inventory turns down as well. So that would add to your cash balance as well.

恭喜您度過了一個美好的季度。林恩，我知道你在傑富瑞會議上說過，你的債務已經很低了。但我想知道你是否可以談論併購或如何部署資本，因為在會議召開時，你沒有 1 億美元的現金，但現在你有了，而且你正在談論帶來庫存也調低。因此，這也會增加您的現金餘額。

Yes. So I'll just jump in here, Theo. We did have a nice cash build this quarter. I'd also point out that we're roughly on track to double last year's CapEx spend internally here as we look at various growth avenues and investments. As Dan had pointed out too, we are obviously always on the hunt for M&A. We think that there is a little bit of a slowdown right now in the M&A market, given some of these global circumstances and kind of situations that we keep reading about. We do believe that will change.

是的。所以我就跳到這裡，西奧。本季我們確實擁有不錯的現金儲備。我還想指出，當我們考慮各種成長途徑和投資時，我們大致預計將將去年的內部資本支出增加一倍。正如丹也指出的那樣，我們顯然一直在尋找併購。我們認為，鑑於我們不斷閱讀的一些全球環境和情況，併購市場目前略有放緩。我們相信這種情況將會改變。

And as we build our cash here, obviously, we're always looking for ways to invest in the future of the business for the long term. So we think that there will be a use for it. History has shown that if you look back to a bunch of years, quite frankly. So we do know that they will be used there for it. But as also Dan called out, we're always looking for ways to improve our capital allocation strategy. So I'll kind of leave it at that.

顯然，當我們在這裡累積現金時，我們一直在尋找長期投資於企業未來的方法。所以我們認為它會有用處。坦白說，歷史已經表明，如果你回顧過去的幾年。所以我們確實知道它們將在那裡被使用。但正如丹所指出的那樣，我們一直在尋找改進資本配置策略的方法。所以我就這樣吧。

Okay. In the e-mobility segment, are you seeing any particular pockets of strength or growth in there? And could you comment just broadly about if you're seeing any inflation effects in the supply chain?

好的。在電動車領域，您是否看到了任何特定的優勢或成長點？如果您看到供應鏈中存在任何通膨影響，您能否廣泛評論一下？

Yes. I mean inflation is all around with under the wage level. And obviously, that doesn't just impact us, it impacts all of our suppliers as well and our customers. So I think inflation is something that everybody is wrestling with and how to contain it. So as we think about automation, as we think about streamlining, right, there's a big emphasis on ensuring efficient operations.

是的。我的意思是通貨膨脹率低於薪資水準。顯然，這不僅影響我們，也影響我們所有的供應商和客戶。所以我認為通貨膨脹是每個人都在努力應對的問題以及如何遏制它。因此，當我們考慮自動化時，當我們考慮精簡時，我們非常重視確保高效營運。

So it is definitely something that we are thinking about and managing as to what frankly our numbers, our facility consolidations will help us manage some of this inflation but it is a point of consideration quite frankly, through everything we do. Whether the customers we pursue, the products we pursue, our pricing, our operations. So it's definitely front and center. So we do think it is something that everybody is wrestling with, quite frankly.

因此，這絕對是我們正在考慮和管理的事情，坦白說，我們的數字、我們的設施整合將幫助我們管理部分通貨膨脹，但坦白說，這是我們所做的一切的一個考慮點。無論是我們追求的客戶、我們追求的產品、我們的定價、我們的營運。所以它絕對是前面和中心。所以坦白說，我們確實認為這是每個人都在努力解決的問題。

And on the e-mobility side, any particular spots of strength there?

在電動車方面，有什麼特別的優勢嗎？

Yes. So on the e-mobility side, generally, maybe just a general comment on industrial e-mobility. These are big-ticket items that cost more than traditional, let's say, ice buses as an example. So as a result of that, we're tilting overall industry excitement around the future of e-mobility.

是的。因此，在電動車方面，一般來說，可能只是對工業電動車的一般評論。這些都是大件物品，比傳統的冰巴士價格更高。因此，我們將整個產業的興奮轉向電動車的未來。

I think some of the nature of our customers, we are seeing that are, call it, a little more start-up in nature as they go through funding rounds. Those are points of consideration. But the good thing about our e-mobility business, it's diverse and it covers customers from startup mode all the way into kind of mature household names.

我認為我們的客戶的一些本質，我們看到，在經歷融資輪次時，他們的本質是更多的新創公司。這些都是考慮的點。但我們的電動車業務的好處是它是多元化的，涵蓋了從新創模式一直到成熟的家喻戶曉的客戶。

But overall, I'd characterize it as a very good end market. But like in the other market, a little bit of challenge there at the customer level. But I think for the most part, we're bullish on that for sure.

但總的來說，我認為這是一個非常好的終端市場。但與其他市場一樣，客戶層面也面臨一些挑戰。但我認為在大多數情況下，我們肯定看好這一點。

Our next question comes from James Ricchiuti with Needham & Company.

我們的下一個問題來自 Needham & Company 的 James Ricchiuti。

Maybe just to close the loop on the e-mobility side. I think you said at one point that you expected this revenue to double this year. Is that still the case? Or are you seeing some macro influencing some of the demand in that market?

也許只是為了關閉電動車方面的循環。我想您曾經說過，您預計今年的收入將翻倍。現在還是這樣嗎？或者您看到一些宏觀因素影響了該市場的某些需求？

Yes. So Jim, last year, e-Mobility sales were in the neighborhood of $20 million. For the first 9 months of this year, we're at $22 million. So probably will not be doubling this year at this rate, but we've already been seeing -- we're already exceeding last year's full year e-Mobility sales but will not double this year.

是的。吉姆，去年電動車銷售額約 2,000 萬美元。今年前 9 個月，我們的收入為 2,200 萬美元。因此，今年可能不會以這個速度翻倍，但我們已經看到——我們已經超過了去年全年的電動車銷量，但今年不會翻倍。

And also, I think on the e-Mobility side, given some of the components, there was a little bit of challenges in getting product out of the door earlier this year. So we do expect a nice finish here in Q4, but I don't think it will be a double level.

而且，我認為在電動車方面，鑑於某些組件，今年早些時候推出產品時遇到了一些挑戰。因此，我們確實預計第四季度會取得不錯的成績，但我不認為這會是雙水平。

Got it. There's a lot of moving parts on the sales line. Just you're exiting some -- you've exited some low-margin business. You have these raw material surcharges, that impact. Is there any way to think about what the revenue growth was organically 9 months or Q3? I'm just trying to get a better fix on the top line.

知道了。銷售線上有很多活動部件。只是你正在退出一些——你已經退出了一些低利潤業務。你有這些原料附加費，這種影響。有什麼方法可以考慮 9 個月或第三季的有機收入成長嗎？我只是想更好地解決頂線問題。

So revenue, excluding PBV?

那麼收入（不含 PBV）是多少？

Yes. I mean, Farouq, I guess -- and we could discuss this offline. It's just yes, I know that you're deemphasizing some low-margin business that's coming out. There's an impact from the raw material surcharges. But is there on an organic basis, are you seeing growth? Clearly, there's some overhang in the channel, the distribution channel, I think we all get that.

是的。我的意思是，法魯克，我想──我們可以離線討論這個問題。是的，我知道您正在淡化一些即將推出的低利潤業務。原材料附加費的影響。但在有機的基礎上，你看到成長了嗎？顯然，通路、分銷管道中存在一些懸而未決的問題，我想我們都明白這一點。

Jim, I think because of the long lead times that were faced over the past 24 months, our pricing that we put in place -- you really in effect that we don't lose sales because of price increases. I think going forward, that might change as lead times come down. So as I said, over the past 24 months, our new strategy, I'm looking at large and not just taking business or take business, hasn't really -- we haven't seen the effects of it at all because of the lead times. So most of it is in PBV.

吉姆，我認為由於過去 24 個月面臨的交貨時間較長，我們制定的定價 - 實際上我們不會因為價格上漲而損失銷售額。我認為，展望未來，隨著交貨時間的縮短，這種情況可能會改變。正如我所說，在過去的 24 個月裡，我們的新策略，我著眼於大局，而不僅僅是開展業務或開展業務，並沒有真正 - 我們根本沒有看到它的影響，因為交貨時間。所以大部分都在PBV裡。

Okay. And maybe just moving to the facility consolidation. You get a little bit of color on some of the early benefits. How do we think about the balance of that rolling out over the course of '24? Is that expected early in the year? Or is it going to be spread more evenly over the course of the year?

好的。也許只是轉向設施整合。您對一些早期的好處有了一些了解。我們如何看待 24 年期間推出的平衡？預計會在今年年初嗎？或者它會在一年中分佈得更均勻嗎？

I'd say the way I think about it, Jim, is it's kind of a phased rolling approach. So we started seeing a little bit of benefits in Q2, more in Q3. We expect to see more in Q4. My guess is there -- if I were just going to hedge it a little bit, my guess is that there will still be a little bit maybe cost that dribbles into Q1 next year.

吉姆，我想說的是，這是一種分階段滾動的方法。因此，我們開始在第二季看到一些好處，在第三季看到更多好處。我們預計第四季會看到更多。我的猜測是——如果我只是想對沖一點，我的猜測是，明年第一季可能還會有一點成本。

But I think largely, we expect that this will be behind us in 2023. Maybe with a little bit of overhang into next year. But I think for the most part, we've made some pretty good progress here. So yes, so I think we'll largely see the benefits of that throughout all of next year.

但我認為，在很大程度上，我們預計這種情況將在 2023 年成為過去。也許明年還會有一些懸而未決的情況。但我認為在很大程度上，我們已經取得了一些相當好的進展。所以是的，所以我認為我們將在明年全年看到它的好處。

Just to circle back quickly on your question about the expedite fee revenue. We do now have in the earnings release itself in the non-GAAP tables, GAAP net sales and what the expedite fee revenue is along with the non-GAAP adjusted net sales. So for the 9-month period, the numbers are noted there. So on that basis, year-over-year for the 9-month period, it was a $22 million increase in non-GAAP adjusted net sales, which was just under 5%.

只是快速回顧一下您關於加急費收入的問題。我們現在在收益發布本身的非公認會計原則表格中列出了公認會計原則淨銷售額以及加急費用收入和非公認會計原則調整後淨銷售額。因此，9 個月期間的數字都記錄在此。因此，在此基礎上，9 個月期間，非 GAAP 調整後淨銷售額年增了 2,200 萬美元，略低於 5%。

Thanks Lynn, for pointing that out. And then just in terms of that some of the business that you've deemphasized, have you put a number to that through the 9 months?

謝謝林恩指出這一點。然後，就您已經淡化的一些業務而言，您是否在這 9 個月內給出了具體數字？

So I mean, we talked about in the last quarter, there was kind of a slug of roughly $9 million that we talked about. The way I would also tend to think about it, though, Jim, it's really at a SKU at an order level right? So when the orders come in, we kind of -- or when we grow stuff, we're going to put our price that works for Bel Fuse, right? But maybe we'd ultimately not get there. So we could walk with.

所以我的意思是，我們在上個季度談到了大約 900 萬美元的資金。不過，吉姆，我也傾向於思考這個問題，它確實是訂單等級的 SKU，對嗎？因此，當訂單到來時，我們會——或者當我們種植東西時，我們會給出適合 Bel Fuse 的價格，對吧？但也許我們最終不會到達那裡。這樣我們就可以一起走。

So I kind of think of that as a regular way SKU maintenance as opposed to kind of big brand deals walking away. I think we're -- I'd say we're largely probably behind some of these kind of grandiose things, and it's going to become an order-driven event. And remember, orders could be small, call it, $1,000 or smaller and up to hundreds thousands of dollars. So it's really going to be done at that kind of line level.

因此，我認為這是一種常規的 SKU 維護方式，而不是大品牌交易的消失。我認為我們——我想說，我們很可能在很大程度上支持了一些此類宏偉的事情，並且它將成為一個訂單驅動的事件。請記住，訂單可能很小，可以稱之為 1,000 美元或更小，也可能高達數十萬美元。所以這確實會在那種生產線級別上完成。

No, that's clear, Farouq. And Lynn, I just want to make sure I'm clear on one other thing on commercial here. You gave a bookings number. And I just -- did you say what the commercial air revenues were in the quarter? I think my recollection is the revenues from commercial air were $15.9 million in Q2? Or was that a bookings number?

不，這很清楚，法魯克。林恩，我只是想確保我清楚有關商業廣告的另一件事。您提供了預訂號碼。我只是 - 您是否說過本季的商業航空收入是多少？我記得第二季商業航空的收入是 1590 萬美元？或者這是一個預訂號碼？

No, you're correct. So the commercial air sales in Q2 were $15.9 million. For Q3, they were down a bit. They were $11.3 million for the quarter.

不，你是對的。因此第二季的商業航空銷售額為 1590 萬美元。第三季度，他們略有下降。該季度的銷售額為 1130 萬美元。

Okay. But generally, it sounds like you're still seeing pretty healthy demand in that market.

好的。但總的來說，聽起來該市場的需求仍然相當健康。

That's right. So as we mentioned earlier, we did have a record bookings quarter for that end market in Q3. So the bookings for Q3 was $15.7 million.

這是正確的。正如我們之前提到的，我們在第三季的終端市場預訂量確實創下了紀錄。因此，第三季的預訂量為 1570 萬美元。

And I think, Jim, the way I kind of think about these end markets like defense kind of just the ordering patterns, shipping patterns kind of, are a little bit maybe more lumpy. So I think that's what (inaudible) as Lynn noted with the bookings and kind of -- and obviously, the conversations we're having with our various customers. It's kind of what gives us that sentiment of positivity on outlook.

吉姆，我認為我對這些終端市場的看法，例如國防，只是訂購模式、運輸模式，可能有點不穩定。所以我認為這就是林恩在預訂中指出的（聽不清楚），以及顯然我們與不同客戶的對話。這讓我們對前景產生了正面的情緒。

Got it. Congrats on the quarter, by the way.

知道了。順便說一句，恭喜這個季度。

Thank you.

謝謝。

(Operator Instructions) Our next question comes from Hendi Susanto with Gabelli Funds.

（操作員說明）我們的下一個問題來自 Gabelli Funds 的 Hendi Susanto。

So Dan, I would like to hear your insight into inventory at customer and distribution across various businesses. Like we have heard like some -- many companies reported weak -- broadening weaknesses in industrials. And I'm wondering like how much we should factor that in going forward. And then if you look at Magnetic, can we assume that inventory correction or digestion is at the bottom of its market? And then I'm also wondering like when we may see a growth recovery in Power Solutions and Protection.

丹，我想聽聽您對客戶庫存和各個企業的分銷的見解。就像我們聽到的——許多公司報告表現疲軟——工業領域的弱點正在擴大。我想知道我們在未來應該在多大程度上考慮這一點。然後，如果你看看 Magnetic，我們是否可以假設庫存調整或消化已處於市場底部？然後我還想知道我們什麼時候可以看到電源解決方案和保護領域的成長復甦。

Okay. I think we talk more Power Solution and Protection. A lot of it, again, is coming from the circuit protection area, and that's a very heavily distribution period business where most customers buy circuits, users through distribution because of the low price. From everything we understand to people like Dow and Avnet, DigiKey and Mouser that they still have to work through their inventory, they bought a way too much inventory and at the highest level.

好的。我想我們更多地討論電源解決方案和保護。其中很大一部分來自電路保護領域，這是一個非常重要的分銷期業務，大多數客戶購買電路，用戶透過分銷購買電路，因為價格低廉。從我們對陶氏化學公司和安富利公司、DigiKey 和貿澤公司等公司的了解來看，他們仍然需要處理庫存，他們購買了太多的庫存，而且是在最高水平。

We hope and believe most of it should be flushed out by the first or the middle of the second quarter, and we should get back to normal ordering at that point in time. So I would say middle of second quarter next year, everybody is predicting that like from an order process will go back. Your next question?

我們希望並相信大部分應該在第一季或第二季中期之前被淘汰，我們應該在那個時間點恢復正常訂單。所以我想說，明年第二季中期，每個人都預測訂單流程將會恢復。你的下一個問題是？

And then -- sorry, what was the next question?

然後——抱歉，下一個問題是什麼？

I think that answered your claims about return to growth, right, Hendi?

我認為這回答了你關於恢復成長的主張，對吧，Hendi？

Yes. Yes.

是的。是的。

Yes. And maybe just to also kind of supplement to -- Dan kind of triggered my memory here. So as a reminder, generally Q2 and Q3 are our strongest quarters. Q1 historically is our weakest quarter. And then Q4 is somewhere in the middle. So the way we kind of look at just kind of the guidance we gave out is kind of the normal cadence of Q4 with some of the holiday patterns and goal that we can in Asia and so on. So wanted to kind of throw that out there.

是的。也許只是為了補充——丹觸發了我的記憶。因此提醒一下，一般來說，第二季和第三季是我們表現最強勁的季度。從歷史上看，第一季是我們最弱的季度。第四季則處於中間位置。因此，我們看待我們給出的指導的方式是第四季度的正常節奏，其中包括我們在亞洲等的一些假期模式和目標。所以想把它扔出去。

Yes. And then Farouq, how sustainable is the gross margin at 35% level now?

是的。然後Farouq，現在35%的毛利率水準有多可持續？

Yes. I mean -- so I mean if you look at it, right, we see -- we do know that there is more cost improvements to be done within the business. Magnetics, while sequentially up on sales, it is still down on low margins, so we do expect improvements in the magnetics side of the house. And so as I think about those 2 things, coupled with weakness that we do see a little bit of power, as Dan mentioned, and also a little bit of connectivity.

是的。我的意思是——所以我的意思是，如果你看一下，我們確實知道，企業內部還有更多的成本改進工作要做。磁性產品雖然銷量連續上升，但由於利潤率較低而仍然下降，因此我們確實預計磁性產品方面會有所改善。因此，當我想到這兩件事時，再加上弱點，我們確實看到了一點力量，正如丹所提到的，以及一點連結性。

So we've yet to hit on all cylinders, right? So our expectation is if we can kind of do this in some pockets of weakness, our expectation is between cost and a little bit of recovery across the business, we do think it's sustainable.

所以我們還沒有全力以赴，對吧？因此，我們的期望是，如果我們能夠在某些弱點做到這一點，我們的期望是在成本和整個業務的一點復甦之間，我們確實認為這是可持續的。

And now does it mean that we may be impacted here and there. Sure. But at the end of the day, I think our expectation is at the gross margin level, we're -- at a consolidated level, we're kind of in the zip code of where we should be. But at the same time, we are working through a lot of things internally and externally here.

現在這是否意味著我們可能會到處受到影響。當然。但歸根結底，我認為我們的預期是在毛利率水平上，我們在綜合水平上，我們在我們應該在的郵政編碼中。但同時，我們正在內部和外部處理很多事情。

And then the press release also called out rail application. Would you refresh our memory, like where the opportunity and then where your products are in rail applications?

然後新聞稿還提到了鐵路申請。您能否刷新我們的記憶，例如鐵路應用中的機會以及您的產品在哪裡？

So maybe just on the rail business. The rail business is really a quality business. But as we know, rail -- I kind of think of it as a step removed from kind of defense in the sense of ordering patterns. The complexity and demanding nature of rail is a business that we've been in for, I think, over 40 years. So this is a great business for us.

所以也許只是在鐵路業務上。鐵路業務確實是一項優質業務。但正如我們所知，鐵路——我認為它是從排序模式意義上的防禦中邁出的一步。我認為，鐵路行業的複雜性和高要求是我們從事該行業 40 多年的行業。所以這對我們來說是一項偉大的事業。

We've seen more investment coming just quite frankly, globally, but predominantly out of Europe and Asia, I would say as they invest in their rail applications. So we're seeing increased orders there. Also some of the new kind of products and quite frankly, we reassigned some more resources to focus on that market. So we're seeing the benefits of that here.

坦白說，我們看到全球範圍內有更多的投資，但主要來自歐洲和亞洲，我想說的是，他們投資於鐵路應用。所以我們看到那裡的訂單增加。還有一些新型產品，坦白說，我們重新分配了更多資源來專注於該市場。所以我們在這裡看到了這樣做的好處。

I think we started doing that in 2021 or perhaps early '22 to kind of really focus on that side. In terms of applications, we tend to be on the passenger rail side of the business. And we have various applications throughout the car anywhere from, I think, the lighting, applications, signaling and kind of other products. So it's a pretty diverse business product for us. In terms of size of that business?

我認為我們在 2021 年或 22 年初就開始這樣做，以便真正關注這一方面。在應用方面，我們傾向於從事客運鐵路業務。我認為，我們在汽車各處都有各種應用，包括照明、應用、訊號和其他產品。所以這對我們來說是一個相當多樣化的商業產品。就該業務的規模而言？

Yes. So our rail sales in Q3 were $6.4 million. So it represented about 9% of the Power segment.

是的。因此，我們第三季的鐵路銷售額為 640 萬美元。因此它約佔電力領域的 9%。

Thank you. At this time, I will turn the call back over to management for closing comments.

謝謝。此時，我會將電話轉回管理階層以徵求結案意見。

Thank you for joining us today, and we're looking forward to speaking to you next year, and have a good day. Thank you.

感謝您今天加入我們，我們期待明年與您交談，祝您有美好的一天。謝謝。

Thank you. This does conclude today's teleconference. You may disconnect your lines at this time. Thank you for your participation.

謝謝。今天的電話會議到此結束。此時您可以斷開線路。感謝您的參與。