Celestica Inc (CLS) 2024 Q1 法說會逐字稿

Good morning, ladies and gentlemen, and welcome to the Celestica first quarter 2024 earnings call.

早安，女士們、先生們，歡迎參加 Celestica 2024 年第一季財報電話會議。

At this time, all lines are in a listen only mode following the presentation, we will conduct a question and answer session.

此時，所有線路都處於只聽模式，在演示結束後，我們將進行問答環節。

If any time during this call you require immediate assistance, please press star zero for the operator and this call is being recorded on Thursday, April 25, 2024.

如果在此通話期間您需要立即協助，請為接線生按星號零，此通話將於 2024 年 4 月 25 日星期四進行錄音。

And I would now like to turn the conference over to Craig Oberg, Vice President of Investor Relations and Corporate Development.

現在我想將會議交給投資者關係和企業發展副總裁克雷格·奧伯格 (Craig Oberg)。

Please go Good morning, and thank you for joining us on Celestica's first quarter 2024 earnings conference call.

請大家早安，感謝您參加 Celestica 2024 年第一季財報電話會議。

On the call today are Rob Mionis, President and Chief Executive Officer, and Mandeep Chawla, Chief Financial Officer.

今天參加電話會議的有總裁兼執行長 Rob Mionis 和財務長 Mandeep Chawla。

Please note that during the course of this conference call, we will make statements relating to the future performance of Celestica that contain forward-looking information.

請注意，在本次電話會議期間，我們將發表有關天弘未來業績的聲明，其中包含前瞻性資訊。

While these forward-looking statements represent our current judgment.

雖然這些前瞻性陳述代表了我們目前的判斷。

Actual results could differ materially from a conclusion, forecast or projection in the forward-looking statements made today.

實際結果可能與今天前瞻性陳述中的結論、預測或預測有重大差異。

Certain material factors and assumptions are applied in drawing any such statements.

在繪製任何此類陳述時會應用某些重要因素和假設。

We undertake no obligation to update these forward-looking statements unless expressly required to do so by law.

除非法律明確要求，否則我們不承擔更新這些前瞻性聲明的義務。

In addition, during this call, we will refer to various non-IFRS financial measures including non-IFRS operating margin, adjusted gross margin, adjusted return on invested capital or adjusted ROIC, adjusted free cash flow, gross debt to non-IFRS trailing 12-month adjusted EBITDA leverage ratio, adjusted earnings per share adjusted EPS, adjusted SG&A expense, adjusted effective tax rate and non-IFRS operating earnings.

此外，在本次電話會議中，我們將參考各種非IFRS 財務指標，包括非IFRS 營業利潤率、調整後毛利率、調整後投資資本回報率或調整後ROIC、調整後自由現金流、非IFRS尾隨12 的總債務月調整後 EBITDA 槓桿率、調整後每股收益、調整後 EPS、調整後 SG&A 費用、調整後有效稅率和非 IFRS 營運收益。

Additional information about material factors that could cause actual results to differ materially from a conclusion forecast or projection in the forward-looking information as well as risk factors that may impact future performance.

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大因素以及可能影響未來業績的風險因素的其他資訊。

Results of Celestica and reconciliation of such non-IFRS financial measures to their most directly comparable IFRS financial measures are contained in our public filings at Cedar plus dot c. a. and SEC.gov, as well as in our press release that was distributed yesterday and which may be found on our website unless otherwise specified.

Celestica 的結果以及此類非 IFRS 財務指標與其最直接可比較的 IFRS 財務指標的調節表包含在我們在 Cedar plus dot c 的公開文件中。 A。和 SEC.gov，以及我們昨天發布的新聞稿，除非另有說明，否則可以在我們的網站上找到。

All references to dollars on this call are to US dollars and per share information is based on diluted shares outstanding.

本次電話會議中所有提及的美元均指美元，每股資訊基於稀釋後的已發行股票。

So let me now turn the call over to Rob.

現在讓我把電話轉給羅布。

Thank you, Craig, and good morning, everyone, and thank you for joining us on today's call.

謝謝克雷格，大家早安，謝謝您參加今天的電話會議。

We started off the year with a very strong first quarter, achieving revenue of $2.21 billion.

我們以非常強勁的第一季伊始，實現了 22.1 億美元的營收。

While our adjusted EPS came in at $0.86 of exceeding the high end of our guidance ranges, non-IFRS operating margin was 6.2%, which was above the midpoint of our revenue and adjusted EPS guidance ranges.

雖然我們調整後的每股收益為 0.86 美元，超出了指導範圍的上限，但非 IFRS 營業利潤率為 6.2%，高於我們的收入和調整後的每股收益指導範圍的中點。

Our solid non-IFRS operating margins resulted in adjusted free cash flow of $65 million during the quarter.

我們穩健的非國際財務報告準則營業利潤率導致本季調整後自由現金流達到 6,500 萬美元。

Strong performance to kick off the year was driven by the ongoing strength in our TCS segment, supported by continued demand strength from our hyperscaler customers.

新年伊始的強勁業績是由我們的 TCS 領域的持續強勁推動的，並受到我們的超大規模客戶持續需求強勁的支持。

This dynamic drove solid sequential and year-over-year growth in revenues across both our enterprise and communications end markets and resulted in CCS segment margin of 7%, a 120 basis points improvement year over year.

這種動態推動了我們的企業和通訊終端市場收入的連續和同比穩健增長，並導致 CCS 部門利潤率達到 7%，同比提高 120 個基點。

And our ACS segment revenues were down slightly year over year, as anticipated, driven primarily by demand softness from customers in our industrial business, partially offset by growth across our other ATS businesses.

正如預期的那樣，我們的 ACS 部門收入同比略有下降，這主要是由於我們工業業務客戶的需求疲軟所致，但部分被我們其他 ATS 業務的成長所抵消。

Our A&D business continues to see solid double-digit year-over-year revenue growth and the outlook for the year remains positive.

我們的 A&D 業務收入持續實現兩位數的年比穩健成長，今年的前景依然樂觀。

And after several tough quarters in our capital equipment business revenues appear to have stabilized and customer forecasts are signaling that year-on-year growth will accelerate in the coming quarters.

經過幾個艱難的季度後，我們的資本設備業務收入似乎已經穩定下來，客戶預測表明未來幾季同比增長將加速。

We are also pleased to share an update regarding our recent tuck-in acquisition.

我們也很高興分享我們最近收購的最新消息。

Following the close of the quarter, we signed a definitive agreement to acquire NCS Global Services LLC, a US-based IT infrastructure and asset management business for $36 million.

本季結束後，我們簽署了一項最終協議，以 3,600 萬美元收購 NCS Global Services LLC，一家位於美國的 IT 基礎設施和資產管理公司。

This acquisition accelerates our IP services roadmap within our CCS segment by expanding our strategic capabilities and geographic footprint and allowing us to enhance our service offerings across the entire lifecycle of our customers' assets.

此次收購擴大了我們的策略能力和地理覆蓋範圍，加速了我們在 CCS 領域的 IP 服務路線圖，並使我們能夠在客戶資產的整個生命週期中增強我們的服務產品。

This acquisition is strongly aligned to our strategic roadmaps and meets our financial hurdles, including being accretive to our adjusted EPS in 2024.

此次收購與我們的策略路線圖高度一致，並解決了我們的財務障礙，包括增加我們 2024 年調整後的每股盈餘。

Overall, we are very pleased with our start to the year, we are encouraged by our solid execution, our strong financial performance and by the positive market tailwinds across a number of the businesses in our portfolio I would now like to turn the call over to Mandeep to provide further details on our first quarter financial performance and our guidance for the second quarter of 2024.

總體而言，我們對今年的開局感到非常滿意，我們紮實的執行力、強勁的財務業績以及我們投資組合中許多業務的積極市場推動力讓我們深受鼓舞，我現在想將電話轉給Mandeep 將提供有關我們第一季財務業績和2024 年第二季指引的更多詳細資訊。

Mandeep, over to you.

曼迪普，交給你了。

Thank you, Rob, and good morning, everyone.

謝謝你，羅布，大家早安。

First quarter revenue came in at $2.21 billion above the high end of our guidance range and up 20% year over year.

第一季營收達到 22.1 億美元，高於我們指引範圍的上限，年增 20%。

The increase was supported by stronger than expected growth in our CCS segment, partially offset by an anticipated modest decline in our ATS segment.

這一增長得益於我們 CCS 領域強於預期的成長，但部分被我們 ATS 領域預期的小幅下滑所抵消。

Our first quarter.

我們的第一季。

Non-ifrs operating margin of 6.2% was an improvement of 100 basis points year over year and marks the first time that our quarterly non-IFRS operating margin exceeded 6.0%.

非國際財務報告準則營業利益率為 6.2%，年增 100 個基點，標誌著我們的季度非國際財務報告準則營業利潤率首次超過 6.0%。

The margin expansion was driven by improved profitability in both segments as a result of favorable mix and production efficiencies.

利潤率的擴張是由於有利的組合和生產效率而提高了兩個部門的盈利能力。

Our adjusted earnings per share for the first quarter was $0.86, which exceeded the high end of our guidance range.

我們第一季調整後每股收益為 0.86 美元，超出了我們指導範圍的上限。

Our adjusted EPS was up $0.39 compared to the prior year period, driven primarily by higher non-IFRS operating earnings and a more favorable adjusted effective tax rate.

與去年同期相比，我們調整後的每股盈餘成長了 0.39 美元，這主要是由於非國際財務報告準則營業利潤的增加和更有利的調整後有效稅率的推動。

Our first quarter adjusted effective tax rate expectation was 20%, assuming that global minimum tax would be enacted in Canada, by March 31.

假設加拿大將於 3 月 31 日之前頒布全球最低稅，我們第一季調整後的有效稅率預期為 20%。

Given the legislation has not yet been enacted, our adjusted effective tax rate came in favorably at 15%, leading to a benefit of approximately $0.05 per share.

鑑於該立法尚未頒布，我們調整後的有效稅率為 15%，每股收益約為 0.05 美元。

Moving on to our segment performance.

延續我們的細分市場表現。

Ats revenue in the first quarter was $768 million, down 3% year over year, which was in line with our expectations of a low single digit percentage decrease year over year decline in ATS segment revenue was driven by continued demand softness in our industrial business.

第一季 ATS 營收為 7.68 億美元，年減 3%，符合我們的預期，即 ATS 部門營收年減的原因是工業業務需求持續疲軟，導致 ATS 部門營收年減。

These declines were partially offset by solid year-over-year growth in our A&D business.

這些下降被我們的 A&D 業務同比穩健成長部分抵消。

In addition, our capital equipment business saw revenue stabilize on a year-to-year basis, registering modest growth compared to the prior year period.

此外，我們的固定設備業務收入較去年同期穩定，較上年同期小幅成長。

Ats segment revenue accounted for 35% of total revenues in the first quarter.

ATS部門收入佔第一季總收入的35%。

Our first quarter CCS segment revenue of $1.44 billion was 38% higher compared to the prior year period, driven by strong growth in both our enterprise and communications end markets.

在企業和通訊終端市場強勁成長的推動下，我們第一季 CCS 部門營收為 14.4 億美元，比去年同期成長 38%。

Ccs segment revenue accounted for 65% of total company revenues in the quarter.

Ccs 部門營收佔本季公司總營收的 65%。

Revenue in our enterprise end market was up by 72% year over year in the first quarter, exceeding our expectation of a high 60% increase to growth was driven by continued demand strength for AIML. compute products from our hyperscaler customers.

第一季我們的企業端市場營收年增 72%，超出了我們對 AIML 持續需求強勁推動的 60% 成長預期。來自我們的超大規模客戶的計算產品。

Revenue in our communications end market was higher by 17% compared to the prior year quarter, which was better than our expectation of a low single-digit percentage increase.

與去年同期相比，我們的通訊終端市場收入成長了 17%，優於我們預期的低個位數百分比成長。

A return to growth in our communications end market was driven by increased demand for HPS. networking products from hyperscaler customers predominantly in support of AIML. infrastructure and HPS. revenue was $519 million in the quarter, up 40% year over year.

HPS 需求的增加推動了我們的通訊終端市場的恢復成長。超大規模客戶的網路產品主要支援 AIML。基礎設施和 HPS。該季度營收為 5.19 億美元，年增 40%。

And accounted for 23% of total Company revenues in the quarter from growth in the first quarter was driven primarily by stronger networking demand from hyperscale customers, including new program ramps Turning to segment margins, ACS segment margin in the first quarter was 4.7%, up 30 basis points compared to the prior year period, driven by favorable mix.

佔本季公司總營收的23%，第一季的成長主要是由超大規模客戶強勁的網路需求推動的，包括新計畫的增加。 ，年成長受有利組合的推動，較上年同期上漲 30 個基點。

Ccs segment margin during the quarter was 7.0%, up 120 basis points year over year as a result of improved mix and volume leverage, which drove strong productivity during the first quarter, we had one customer that accounted for more than 10% of total revenues, representing 34% of sales for the quarter.

本季CCS部門利潤率為7.0%，年成長120個基點，這得益於組合和銷售槓桿的改善，這推動了第一季的強勁生產力，我們有一個客戶佔總收入的10%以上，佔該季度銷售額的34%。

But we continue to support this strong demand with solid execution across a number of programs, and we remain comfortable with our current levels of concentration with this customer in our portfolio.

但我們繼續透過多項計劃的紮實執行來支持這一強勁需求，並且我們對目前在我們的產品組合中對該客戶的關注程度感到滿意。

Moving on to some additional financial metrics.

接下來討論一些額外的財務指標。

IFRS. net earnings for the first quarter were $102 million or $0.85 per share compared to $25 million or $0.2 per share in the prior year period.

國際財務報告準則。第一季淨利為 1.02 億美元，即每股 0.85 美元，而去年同期淨利為 2,500 萬美元，即每股 0.2 美元。

Adjusted gross margin for the first quarter was 10.2%, up 80 basis points year over year due to more favorable mix and production efficiencies resulting from higher volumes.

第一季調整後毛利率為 10.2%，較去年同期成長 80 個基點，這是由於產量增加帶來的更有利的產品組合和生產效率。

Our adjusted ROIC for the first quarter was 24.8%, an improvement of 6.9% compared to the prior year quarter, driven by higher profitability and effective working capital management.

在更高的獲利能力和有效的營運資本管理的推動下，我們第一季調整後的投資報酬率為 24.8%，比去年同期提高了 6.9%。

Moving on to working capital.

轉向營運資金。

At the end of the first quarter, our inventory balance was $1.96 billion down $150 million sequentially and down $440 million year over year.

第一季末，我們的庫存餘額為 19.6 億美元，比上一季減少 1.5 億美元，比去年同期減少 4.4 億美元。

Cash deposits were $719 million at the end of the first quarter $185 million lower sequentially and down by $91 million compared to the prior year period.

第一季末現金存款為 7.19 億美元，比上一季減少 1.85 億美元，比去年同期減少 9,100 萬美元。

Our cash deposits decreased as expected as a result of higher deliveries on a number of ramping projects.

由於一些爬坡項目的交付量增加，我們的現金存款按預期減少。

Cash cycle days were 69 during the first quarter, down three days sequentially and six days lower in the prior year period.

第一季現金週期天數為 69 天，較上一季減少 3 天，比去年同期減少 6 天。

Moving on to cash flows.

轉向現金流。

Capital expenditures for the quarter were $40 million or approximately 1.8% of revenue, flat compared with the prior year period.

該季度的資本支出為 4,000 萬美元，約佔營收的 1.8%，與去年同期持平。

Consistent with our discussion last quarter, we continue to expect our capital expenditures for 2024 to be between 1.75% and 2.25% of revenues during the first quarter, we commenced operations at two of our new facility expansion, the first phase addition to our Thailand facility and the 80,000 square foot expansion at our Kulim site in Malaysia.

與我們上季度的討論一致，我們仍然預計 2024 年第一季的資本支出將佔收入的 1.75% 至 2.25%，我們的兩個新設施擴建項目開始運營，第一階段是泰國設施的擴建以及馬來西亞居林工廠80,000 平方英尺的擴建。

We remain on track to complete the second phase of our Thailand facility expansion by the first half of 2020 time, which will add more than 100,000 square feet of manufacturing floor space to support our programs with hyperscaler customers.

我們仍有望在 2020 年上半年完成泰國工廠擴建的第二階段，這將增加超過 100,000 平方英尺的製造佔地面積，以支持我們與超大規模客戶的專案。

Turning to our adjusted free cash flow.

轉向我們調整後的自由現金流。

We generated $65 million in the first quarter compared to $9 million in the prior year period.

我們第一季的營收為 6,500 萬美元，而去年同期為 900 萬美元。

Moving on to some additional key metrics.

繼續討論一些其他關鍵指標。

At the end of the first quarter, our cash balance was $308 million in combination with our approximately $600 million in borrowing capacity under our revolver provides us with liquidity of approximately $900 million, which we believe is sufficient to meet our anticipated business needs our gross debt at the end of the first quarter was $632 million, leaving us with a net debt position of $324 million.

截至第一季末，我們的現金餘額為3.08 億美元，加上我們的循環貸款下約6 億美元的借款能力，為我們提供了約9 億美元的流動性，我們相信這足以滿足我們的預期業務需求。

Our first quarter gross debt to non-IFRS trailing 12-month adjusted EBITDA leverage ratio was 1.0 turns, down 0.1 turns sequentially and down 0.3 turns compared to the same period last year.

我們第一季的總債務與非國際財務報告準則的過去 12 個月調整後 EBITDA 槓桿率為 1.0 倍，比上一季下降 0.1 倍，與去年同期相比下降 0.3 倍。

As of March 31, 2024, we were compliant with all financial covenants under our credit agreement.

截至 2024 年 3 月 31 日，我們遵守信用協議下的所有財務契約。

During the first quarter, we purchased approximately 460,000 shares for cancellation under our normal course issuer bid at a cost of $17 million.

在第一季度，我們購買了約 46 萬股股票，並根據正常發行人的出價以 1,700 萬美元的價格取消。

We intend to continue to repurchase shares on an opportunistic basis in 2024.

我們打算在2024年繼續機會主義地回購股票。

Now turning to our guidance for the second quarter of 2024.

現在轉向我們對 2024 年第二季的指導。

Revenues in the second quarter are expected to be in the range of $2.175 billion to $2.325 billion, which is the midpoint of this range is achieved would represent growth of 16% compared to the prior year period.

第二季的營收預計在 21.75 億美元至 23.25 億美元之間，這是該範圍的中點，如果實現的話，將比去年同期增長 16%。

Second quarter adjusted earnings per share are expected to be in the range of $0.75 to $0.85, which at the midpoint would represent an improvement of $0.25 per share or 45% compared to the second quarter 2023.

第二季調整後每股盈餘預計在 0.75 美元至 0.85 美元之間，與 2023 年第二季相比，每股盈餘中位數將增加 0.25 美元，即 45%。

If the midpoint of our revenue and adjusted EPS guidance ranges are achieved, non-IFRS operating margin would be 6.1%, which would represent an increase of 60 basis points over the same period last year.

如果達到我們收入和調整後每股收益指引範圍的中點，非國際財務報告準則營業利益率將為 6.1%，比去年同期增加 60 個基點。

Our adjusted SG&A expense for the second quarter is expected to be in the range of $67 million to $69 million.

我們調整後的第二季 SG&A 費用預計在 6,700 萬美元至 6,900 萬美元之間。

We anticipate our adjusted effective tax rate to be approximately 20% for the second quarter, excluding any impact from taxable foreign exchange or unanticipated tax settlements.

我們預計第二季調整後的有效稅率約為 20%，不包括應稅外匯或意外稅務結算的任何影響。

Consistent with our approach last quarter, our guidance assumes that our income will be subject global minimum tax.

與我們上季度的方法一致，我們的指導假設我們的收入將繳納全球最低稅。

Now turning to our end market outlook for the second quarter of 2024.

現在轉向我們對 2024 年第二季的最終市場展望。

In our ECS segment, we anticipate revenue to be down in the high single digit percentage range year-over-year, driven by demand softness in our industrial business, partly offset by growth in A&D and capital equipment.

在我們的 ECS 領域，由於工業業務需求疲軟，我們預計收入將同比下降高個位數百分比，但部分被 A&D 和資本設備的成長所抵消。

We anticipate revenues in our communications end market to be up in the 40%-mid range year over year, driven by strengthening demand for HPS. networking products from hyperscaler customers.

在 HPS 需求增強的推動下，我們預期通訊終端市場的營收將年增 40% 左右。來自超大規模客戶的網路產品。

Finally, in our enterprise end market, we expect revenue to be up in the low 20s percentage range year over year, driven by anticipated demand growth in AI and compute programs from our hyperscaler customers.

最後，在我們的企業終端市場，由於我們的超大規模客戶對人工智慧和計算程式的預期需求增長，我們預計收入將年增 20 %左右。

I'll now turn the call back over to Rob to discuss the outlook for each of our end markets and the overall business.

現在，我將把電話轉回給 Rob，討論我們每個終端市場和整體業務的前景。

Thank you, Mandeep.

謝謝你，曼迪普。

Before discussing the outlook for our end markets, I would like to provide an update to our annual financial outlook for 2024.

在討論我們的終端市場前景之前，我想先介紹一下我們 2024 年年度財務展望的最新情況。

We are pleased to be raising our full year outlook.

我們很高興上調全年展望。

Based on our solid performance in the first quarter and the positive momentum we are seeing across a number of our businesses.

基於我們第一季的穩健業績以及我們在多項業務中看到的積極勢頭。

We now expect revenue of $9.1 billion in 2024 and adjusted EPS of $3.30, which would represent a growth of 14% and 36%, respectively.

我們目前預計 2024 年營收為 91 億美元，調整後每股收益為 3.30 美元，分別成長 14% 和 36%。

Compared to 2023.

與 2023 年相比。

Our non-IFRS operating margin is now expected to be approximately 6.1%, which would represent a 50 basis points improvement compared to 2023 Finally, we are raising our adjusted free cash flow outlook to $250 million for the full year.

目前，我們的非國際財務報告準則營業利潤率預計約為 6.1%，與 2023 年相比提高了 50 個基點。

Now moving on to the outlook for our businesses, beginning with our ATS segment within ATS, we continue to anticipate a decline in the first half of 2024 compared to 2023 and for year-over-year growth to resume in the back half of the year.

現在轉向我們的業務前景，首先從 ATS 內的 ATS 部門開始，我們繼續預計 2024 年上半年業務將較 2023 年有所下降，而下半年將恢復同比增長。

As a result, we are now expecting ATS segment revenues to be approximately flat for the full year in 2024 compared to 2023 in our industrial business.

因此，我們目前預計 2024 年全年 ATS 部門的工業業務收入將與 2023 年基本持平。

We believe that key submarkets, including EV charging, smart energy on vehicle and factory automation, will continue to be supported by favorable secular trends in autonomy over the long term and will help drive robust and sustainable growth in our industrial business in the coming years.

我們相信，從長遠來看，包括電動車充電、車輛智慧能源和工廠自動化在內的關鍵子市場將繼續受到自動駕駛領域有利的長期趨勢的支持，並將有助於推動我們工業業務在未來幾年的強勁和可持續增長。

However, in the near term, the industrial business continues to experience softness across a number of our submarkets driven in large part by EV charging as the industry works through an inventory backlog amidst a slowdown in demand for electric vehicles forever, we do expect demand to improve as the year progresses and for revenues to show sequential improvement throughout 2024 with a return to year-over-year growth expected by the fourth quarter.

然而，短期內，我們的許多子市場的工業業務繼續表現疲軟，這在很大程度上是由電動車充電驅動的，因為該行業在電動車需求永遠放緩的情況下解決庫存積壓問題，我們確實預計需求將隨著時間的推移而改善，收入將在 2024 年持續改善，預計在第四季度恢復同比增長。

In our A&D business, the recovery in air traffic continues to drive solid commercial aerospace growth.

在我們的航空與國防業務中，空中交通的復甦持續推動商業航空航太的穩健成長。

We expect broad-based demand strength in our commercial aerospace portfolio to persist throughout 2024.

我們預計我們的商業航空航太產品組合的廣泛需求強勁將持續到 2024 年。

We also anticipate healthy growth in our defense business this year, supported by the ramping of new programs in our capital equipment business.

我們也預計，在資本設備業務新項目不斷增加的支持下，今年我們的國防業務將健康成長。

We are seeing early signs of a recovery of revenue stabilizing both year-over-year and sequentially in the first quarter.

我們看到第一季營收年比和季比恢復穩定的早期跡象。

The latest third party forecasts are now calling for an improved demand outlook for the wafer fab equipment market in 2024, supported primarily by a recovery in the memory market within our portfolio, stronger base demand and the ramping of newly won programs, our affirming our outlook for return to growth in 2020 for market forecast currently suggests that capital investments by chip manufacturers will continue to grow into 2025 in order to support demand for processes using generative AI applications and increased silicon content and products within other sectors such as automotive.

最新的第三方預測顯示，2024 年晶圓廠設備市場的需求前景將有所改善，這主要得益於我們投資組合中的內存市場的復甦、基礎需求的強勁以及新贏得項目的增加，我們肯定了我們的前景目前市場預測表明，晶片製造商的資本投資將在2020 年恢復增長，到2025 年將繼續增長，以支持對使用生成式AI 應用的流程的需求以及汽車等其他行業增加的矽含量和產品。

We anticipate that these trends will support continued momentum and our portfolio into next year.

我們預計這些趨勢將支持明年的持續發展動能和我們的投資組合。

Now turning to our CCS segment.

現在轉向我們的 CCS 部分。

Based on the strong outlook in our CCS segment, we are raising our expectation for revenue growth to the mid 20s percentage range for 2024, supported by solid demand in both our enterprise and communications end market and demand strength from our hyperscaler customers continues to support very strong growth in our CCS segment.

基於CCS 領域的強勁前景，我們將2024 年營收成長預期提高至20% 左右，這得益於我們的企業和通訊終端市場的強勁需求，以及我們的超大規模客戶的需求強度繼續支持非常大的成長。

In 2023, hyperscalers accounted for 62% of our CCS segment revenues, and we expect that number to grow in 2024.

2023 年，超大規模企業占我們 CCS 部門營收的 62%，我們預計這一數字將在 2024 年成長。

As we have discussed in recent quarters and at our November 2023 Investor Day, the growth in demand for new AI and machine learning applications remains the primary driver underpinning this investment cycle.

正如我們在最近幾個季度和 2023 年 11 月投資者日討論的那樣，對新人工智慧和機器學習應用程式的需求成長仍然是支撐這一投資週期的主要驅動力。

We continue to believe that this secular theme is durable in its nature and is likely to support continued demand strength for CCS offerings into 2025.

我們仍然相信，這個長期主題本質上是持久的，並可能支援 CCS 產品的需求持續強勁到 2025 年。

As such, we are continuing to make the necessary investments, including in capacity expansion and engineering capabilities in order to maintain our position as a leading provider of critical products and services for the data center.

因此，我們將繼續進行必要的投資，包括產能擴張和工程能力的投資，以維持我們作為資料中心關鍵產品和服務領先提供者的地位。

Now moving on to our end markets, the demand outlook for our enterprise end markets remains very healthy as we continue to benefit from the growing investment in AIML. compute capacity by hyperscalers.

現在轉向我們的終端市場，隨著我們繼續受益於 AIML 不斷增長的投資，我們的企業終端市場的需求前景仍然非常健康。超大規模的運算能力。

We anticipate enterprise demand to remain strong in the coming quarters.

我們預計未來幾季企業需求將保持強勁。

Supported by increasing AIML. compute deployments and new program ramps.

透過增加 AIML 來支援。計算部署和新程式升級。

Our communications end market saw stronger than anticipated demand to start the year, and we expect this momentum to accelerate in the coming quarters and anticipate sustained growth throughout 2024, supported by strong demand from hyperscale customers for HVS networking products and the ramping of new programs within our HPS business, the demand largely mirrors that of our communications end market.

我們的通訊終端市場今年年初的需求強於預期，我們預計這一勢頭將在未來幾個季度加速，並預計在超大規模客戶對HVS 網路產品的強勁需求以及新項目的增加的支持下，到2024年將持續成長。

Our outlook calls for sustained double digit growth throughout 2024, supported by increased deployment of networking infrastructure from hyperscalers after a period of inventory digestion in 2023.

我們的展望是，在 2023 年經過一段時間的庫存消化後，超大規模企業增加網路基礎設施部署的支持下，2024 年將實現持續兩位數成長。

In addition, new program wins, including for our 800 G. platforms, are expected to ramp throughout the year and into 2025.

此外，新項目（包括我們的 800 G. 平台）預計將在全年和 2025 年不斷增加。

We feel that our portfolio is well positioned for another very strong year in 2024.

我們認為，我們的投資組合已做好充分準備，迎接 2024 年又一個強勁的一年。

We continue to prioritize the fundamentals adherence to our strategic roadmap, solid execution and prudent decision making in all of our businesses.

我們繼續在所有業務中優先考慮堅持策略路線圖、堅定執行和審慎決策的基本原則。

Regardless of the dynamics at play within the underlying markets, we remain confident in our ability to deliver on our financial targets and continue generating long-term value for our shareholders.

無論基礎市場的動態如何，我們仍然對實現財務目標並繼續為股東創造長期價值的能力充滿信心。

With that, I would now like to turn the call over to the operator for questions.

現在，我想將電話轉給接線員詢問問題。

Thank you.

謝謝。

Thank you, presenters.

謝謝各位主持人。

And ladies and gentlemen, we will now begin the question and answer session.

女士們、先生們，我們現在開始問答環節。

Should we have a question, please press the star followed by the number one on your touchtone phone.

如果我們有疑問，請按下您的按鍵式電話上的星號，然後再按數字 1。

You will hear a prompt that your hand has been raised and should you wish to decline from the polling process, please press the star followed by the number two.

您將聽到提示，提示您已舉手，如果您希望拒絕投票過程，請按星號，然後按數字 2。

If you're using a speakerphone, please lift the handset before pressing any keys.

如果您使用免持電話，請在按任何按鍵之前拿起聽筒。

And one more in please, for your first questions.

對於您的第一個問題，請再補充一個。

Your first question comes from the line of Robert Young of Canaccord Genuity.

你的第一個問題來自 Canaccord Genuity 的 Robert Young。

Your line is now opened for.

您的線路現已開通。

Hi, good morning.

早安.

Congrats on the quarter.

恭喜本季。

And the first question I had was related to the full year guide.

我的第一個問題與全年指南有關。

It was just simply take the Q1 and Q2 guide out of there.

只需將 Q1 和 Q2 指南從那裡取出即可。

It implies a deceleration, a deceleration in the top line in the second half.

它意味著減速，下半場頂線的減速。

And so just curious if that's visibility into the second half or is there something specific to call out there or any other factor?

所以只是好奇這是否是下半場的可見性，或者有什麼具體的事情需要指出，或者任何其他因素？

Good morning, Robin, and thank you.

早安，羅賓，謝謝你。

So hyperscale demand remains healthy across multiple markets and demand signals remain healthy, but really it comes down to visibility, and you touched on it.

因此，多個市場的超大規模需求仍然保持健康，需求訊號也保持健康，但實際上這取決於可見性，您也談到了這一點。

So hyperscale customers generally provide about a 12 month outlook.

因此，超大規模客戶通常會提供約 12 個月的展望。

But beyond six months, there's some dynamics demand dynamics at play that demand continues to exceed supply.

但六個月後，一些動態的需求動態正在發揮作用，導致需求持續超過供應。

So as material availability improves, orders accelerate.

因此，隨著材料可用性的提高，訂單也會加速成長。

And then secondarily, there is some variability in customer deployment plans driven by customers' resource constraints or to some extent it's technology transitions.

其次，由於客戶的資源限製或在某種程度上是技術轉型，客戶部署計畫存在一些變化。

So our visibility into the fourth quarter is a bit murky that should firm up in the next few months, but hence, our view of a flattish relative to the first half of full year outlook?

因此，我們對第四季的看法有點模糊，但在接下來的幾個月裡應該會變得更加堅定，但因此，我們對全年前景相對於上半年持平的看法是什麼呢？

Hey, Rob.

嘿，羅布。

Mandeep here.

曼迪普在這裡。

Just to build on what Rob was mentioning, the [91] [100] reflects 14% year-over-year growth.

就 Rob 所提到的內容而言，[91][100] 反映了 14% 的年成長。

And to your point the second half year over year is a little bit lower than the first half, but still a strong double digit set of numbers.

就您而言，下半年的年增速略低於上半年，但仍是強勁的兩位數數字。

I think the important thing to take away is that the demand environment in CCS in particular remains healthy.

我認為最重要的是 CCS 的需求環境仍然健康。

We're not seeing areas of concern, but we are being mindful of things such as material availability and going back to our customers and say, look, Q2 came in stronger than what we had thought it was going to be at what are the implications for the back half of the year and so those discussions our continuing.

我們沒有看到值得關注的領域，但我們正在關注諸如材料可用性之類的事情，並回到我們的客戶那裡說，看，第二季度的表現比我們想像的要強，這會產生什麼影響今年下半年，這些討論將繼續進行。

Okay, thanks.

好的謝謝。

That's very helpful.

這非常有幫助。

And second question for me would be on the customer concentration and ending last quarter, you suggested that networking recovery would then maybe help that out a little bit.

對我來說，第二個問題是關於客戶集中度，上個季度結束時，您建議網路復原可能會對此有所幫助。

And so with HPS returned to growth, I'm surprised to see the concentration actually go up.

因此，隨著 HPS 恢復增長，我驚訝地發現濃度實際上有所上升。

And so is that right?

那麼這是正確的嗎？

Networking plus AI at that first largest customer?

第一個最大客戶的網路加人工智慧？

Or is there any other dynamic at play?

或者還有其他動力在運作嗎？

And then I'll pass the line.

然後我就過線了。

Yes.

是的。

Yes, you hit on it, Rob, which is 34% with our biggest customer.

是的，你猜對了，羅布，我們最大的客戶有 34% 的支持率。

At the same time, we saw a very large level of growth happening in comms, and it's continuing into the second quarter.

同時，我們看到通訊領域出現了非常大的成長，並且這種成長一直持續到第二季​​。

And it just underscores what we had talked about on last quarter, which is we do a number of programs, 20 plus programs with this largest customer.

這只是強調了我們在上個季度討論過的內容，即我們與這個最大的客戶開展了許多項目，20 多個項目。

And so not only are we seeing demand strength on the compute side with that large customer, but we're also seeing an acceleration now on the switching side as well.

因此，我們不僅看到了該大客戶在計算方面的需求強度，而且我們現在還看到交換方面的加速。

And so we're happy that our portfolio was able to support them in multiple areas and I'll add that the beyond the top customer growth remains very healthy across a number of our hyperscaler customers as well, along those same platforms, comms, enterprise.

因此，我們很高興我們的產品組合能夠在多個領域為他們提供支持，我要補充的是，在我們的許多超大規模客戶中，除了頂級客戶之外，在這些相同的平台、通信、企業中，超大規模客戶的成長也仍然非常健康。

And just as a follow on there.

就像那裡的後續一樣。

The HPS growth I would assume is driven by 400 gig switch.

我認為 HPS 的成長是由 400 gig 交換器推動的。

Is that spread across a larger number of customers is broader than just that large customer maybe you could give us a sense of how many customers you have there, how broad that businesses?

分佈在更多客戶中的範圍是否比大客戶更廣泛？

Yes, 400 gig is across a number of customers.

是的，400 演出涉及多個客戶。

We're also ramping 800 gig switches this year and into next year by next year, additional customers will come on on 800 G. fast, which ramps.

我們今年還將增加 800 個千兆交換機，到明年，更多的客戶將使用 800 G.fast，速度正在增加。

And then on HPS., it's also important to point out that MHPS. is not just limited to networking.

然後在 HPS 上，指出 MHPS 也很重要。不僅僅局限於網路。

There's also a fair amount of HPS. content in compute modules in states as well Okay.

還有相當數量的 HPS。狀態中的計算模組中的內容也是好的。

Thanks.

謝謝。

I'll pass the line.

我會過線。

Thank you so much.

太感謝了。

And your next question comes from the line of Daniel Chan of TD common.

您的下一個問題來自 TD common 的 Daniel Chan。

Please go ahead.

請繼續。

I'm wondering and maybe just to top-up on that is on the communications question.

我想知道，也許只是為了補充溝通問題。

As you get more mix of 800G, how does that affect the financials?

隨著 800G 的組合越來越多，這對財務有何影響？

In other words, what does the price and margin profile difference between the 800G and 400G program?

換句話說，800G 和 400G 方案的價格和利潤率有何差異？

Hi, Dan, thanks for the question.

嗨，丹，謝謝你的提問。

So the ASPs, of course, change a little bit as you go from 400 g to 800 G. and not necessarily twice as much.

因此，當您從 400 g 增加到 800 G 時，ASP 當然會發生一點變化，但不一定是兩倍。

And so it's really a conversation of how many units are being shipped, et cetera.

因此，這實際上是關於正在運送多少單位的對話，等等。

I think if we were to just up-level it and look at overall revenue, we expect revenue growth to be higher year over year as the 100G deployments happen.

我認為，如果我們只是提升其水準並查看整體收入，我們預計隨著 100G 部署的發生，收入成長將逐年更高。

As to the question that you're asking, the 400G demand is really, as you know, communications slowdown because of an inventory overbuild.

至於您所問的問題，如您所知，400G 需求實際上是由於庫存過剩而導致通訊速度減慢。

We're announcing customers not only at work with us on program development around 800 G. products, but also taking 400G products in the meantime as well.

我們宣布客戶不僅與我們合作開發 800G 產品的程序，同時也開始採用 400G 產品。

And so it's nice to see that we're actually shipping both products right now.

因此，很高興看到我們現在實際上正在發貨這兩種產品。

We would expect naturally for 400G to start slowing down going into next year that filled more than one for one on the 800G.

我們預計 400G 進入明年自然會開始放緩，這將超過 800G 的一比一。

Thanks.

謝謝。

That's helpful.

這很有幫助。

When you talk to your cloud customers and you look at the AI data center architecture does do you get the sense that the mix of your products within an AI data center could be higher than what is what was done for a traditional data center Yes.

當您與雲端客戶交談並查看人工智慧資料中心架構時，您是否感覺到人工智慧資料中心內的產品組合可能比傳統資料中心的產品組合更高？

So that's a hard one to discern.

所以這是一個很難辨別的問題。

But what I do know is we have all the solutions that our customers need that go into an AI data center, and we're currently providing them.

但我所知道的是，我們擁有客戶需要的所有進入人工智慧資料中心的解決方案，而我們目前正在提供這些解決方案。

So hence, we're firing on all cylinders.

因此，我們正在全力以赴。

We have HBS. content across the compute modules.

我們有哈佛商學院。跨運算模組的內容。

We provide high-value EMS across compute modules.

我們提供跨運算模組的高價值 EMS。

We have HPS. content on 403 hundred switches.

我們有 HPS。 40300台交換器上的內容。

And we're also in advanced development of future generation from network devices.

我們也正在進行下一代網路設備的高級開發。

And we also, as you know, have storage solutions, both the HPS. and the traditional as well.

如您所知，我們也有儲存解決方案，包括 HPS。以及傳統的。

So we are our customers are really taking advantage of our full solutions.

因此，我們的客戶確實在利用我們的完整解決方案。

Dan, as you know, I know hyperscalers are created equal and there are some hyperscalers that lean towards more complex, challenging product deployments.

Dan，如您所知，我知道超大規模企業生而平等，有些超大規模企業傾向於更複雜、更具挑戰性的產品部署。

And that really works out well for us.

這對我們來說確實很有效。

And the reason that you're seeing the amount of growth that we're showing in HPS. is because those are the solutions that really fit the demand, have requirements of certain hyperscalers.

這也是您看到我們在 HPS 中顯示的增長量的原因。因為這些是真正符合需求的解決方案，具有某些超大規模企業的要求。

And so as we see this shift towards more AI type of data centers, it implies more complex product, which is, but we want to see.

因此，當我們看到這種轉向更多人工智慧類型的資料中心的轉變時，它意味著更複雜的產品，但我們希望看到這一點。

Great.

偉大的。

That's helpful.

這很有幫助。

And maybe squeezing one more in on the enterprise.

或許還可以對企業再施加壓力。

The enterprise growth is expected to decelerate next quarter.

預計下季企業成長將放緩。

Have you been successful in diversifying your hyperscale hyperscale customer base in a compute just given your experience with the server using custom AI chipsets?

鑑於您在使用自訂 AI 晶片組的伺服器方面的經驗，您是否已成功在運算領域實現超大規模客戶群的多元化？

And if so, what does that ramp look like orders or is this the new run rate for the remainder of the year?

如果是這樣，那麼訂單量是多少，或者這是今年剩餘時間的新運行率？

Thank you.

謝謝。

I'll start off and then maybe finish the second quarter dynamic in terms of enterprise up by in the 20s.

我將從企業方面開始，然後可能會在 20 多歲之前完成第二季的動態。

The main driver is really tough comps from a year ago.

主要驅動因素是一年前的艱難比賽。

But what we're seeing in the second quarter is also some storage demand declining, but we're seeing very healthy, steady demand from compute as well.

但我們在第二季度看到的儲存需求也有所下降，但我們也看到運算需求非常健康、穩定。

We're also, as we mentioned earlier, happy that comms is up significantly, and CCS is up significantly as well.

正如我們之前提到的，我們也很高興通訊量顯著上升，CCS 也顯著上升。

Yes, Dan, what I would say is that the enterprise revenues, especially as we go into the second quarter, continue to increase on a sequential basis.

是的，丹，我想說的是，企業收入，特別是進入第二季時，繼續環比成長。

And as we did talk about the demand signals continue to be healthy.

正如我們所討論的，需求訊號仍然健康。

We do serve a more than a number of customers on the server side.

我們確實在伺服器端為眾多客戶提供服務。

And but I think what's important to look at comms and enterprise side as we up-level it to total revenue with our hyperscalers, we're seeing that growth continuing there, shifting CapEx now and then from one type of product deployment to another.

但我認為，當我們將超大規模提供者的總收入提升到總收入時，重要的是要關注通訊和企業方面，我們看到那裡的增長仍在繼續，資本支出時不時地從一種類型的產品部署轉移到另一種類型的產品部署。

But overall continuing to see strong topline growth with hyperscalers in aggregate.

但總體而言，超大規模企業的整體收入持續強勁成長。

Thank you.

謝謝。

Thank you so much.

太感謝了。

And your next question comes from the line of Matt Sheerin of Stifel.

您的下一個問題來自 Stifel 的 Matt Sheerin。

Your line is now open.

您的線路現已開通。

But yes, thank you.

但是，是的，謝謝。

A couple of questions from me, please.

請我問幾個問題。

One Mandeep, just on the balance sheet, I saw that the inventory gross inventory was down in net inventory was down where your cash deposits were also down, yet you're growing significantly.

Mandeep，就在資產負債表上，我看到庫存總庫存下降了，淨庫存也下降了，你的現金存款也下降了，但你的成長卻顯著。

So could you talk about the dynamics going on there and gift giving the growth in the hyperscale business, are you seeing a shift in terms of consignment inventory that you're not passing through your your counterparts?

那麼，您能否談談超大規模業務的動態和禮品贈送的成長，您是否看到寄售庫存方面發生了變化，而您沒有透過同行傳遞？

Thanks for the question, Matt.

謝謝你的提問，馬特。

So yes, strong working capital performance.

所以，是的，營運資金表現強勁。

Happy with the free cash flow that we generated, $65 million happy that we're able to raise the overall free cash flow number for the year to $250.

對我們產生的 6500 萬美元自由現金流感到滿意，我們很高興能夠將今年的自由現金流總量提高到 250 美元。

We want to continue to monitor how healthy our conversion is, and we're comfortable with the conversion ratios that we have and we are not trying to save anymore.

我們希望繼續監控轉換的健康程度，並且我們對現有的轉換率感到滿意，並且不再試圖節省。

But as you know, over five years of positive free cash flow every quarter under the covers as you're hitting on it, we are seeing some unwind on the inventory side as we were anticipating our inventory turns are improving, and it's really a function of continuing to be collaborative with our customers and seeing lead times come in our lead times on semis as well as passives are now under 20 weeks, which is allowing us to do some of that unwind.

但正如你所知，五年來每個季度自由現金流都為正，正如你所發現的那樣，我們看到庫存方面有所放鬆，因為我們預計我們的庫存週轉率正在改善，這確實是一個函數繼續與我們的客戶合作，並看到我們半成品和被動產品的交貨時間現在不到20 週，這使我們能夠放鬆一些。

The deposits were also unwinding again as expected because we were always working with our customers saying as long as lead times are really extended.

存款也如預期再次減少，因為我們總是與客戶合作，說只要交貨時間真正延長即可。

How do we come into a model where they can help fund some of that as they are coming in now, we're happy to return the deposits and still generate positive free cash flow, your point on inventory build from a dollar perspective, inventory may go up as we go through the year, but we're very focused on turns.

我們如何進入一個模型，讓他們可以幫助為其中一些提供資金，因為他們現在進來了，我們很高興退還押金，並且仍然產生正的自由現金流，您從美元角度來看庫存建設的觀點，庫存可能隨著這一年的發展，我們的業績會不斷上升，但我們非常注重輪轉。

And we don't think that the turns are necessarily going to take a step back.

我們認為轉變並不一定會退後一步。

And then in terms of consigned non-compliance, nothing, nothing really to note in terms of any differences.

然後就委託違規行為而言，沒有任何差異需要注意。

Okay.

好的。

Thank you for that.

謝謝你。

And I wanted to ask a question on the competitive landscape.

我想問一個關於競爭格局的問題。

Obviously, you're gaining market share, particularly with the one hyperscale customer.

顯然，您正在獲得市場份額，尤其是針對一位超大規模客戶。

There is some concern that we're seeing more competition from your North American EMS peers, but also obviously from the ODMs in Asia.

有人擔心我們看到來自北美 EMS 同行的競爭越來越激烈，但顯然也來自亞洲 ODM 的競爭。

Could you talk about your competitive edge and whether you expect your large customer to bring on other suppliers?

您能否談談您的競爭優勢以及您是否希望您的大客戶引入其他供應商？

And what does that do to your dynamic in that relationship?

這對你們在這段關係中的活力有什麼影響？

Yes, Matt, on some second sourcing in the EMS ecosystem is nothing new, but what typically happens is new programs are single sourced from the onset and over time, as the technology matures, as second sources brought into the equation usually enable enabling their primary source to introduce next-generation products.

是的，馬特，在EMS 生態系統中進行二次採購並不是什麼新鮮事，但通常會發生的情況是，新程序從一開始就是單一來源，隨著時間的推移，隨著技術的成熟，引入等式的二次來源通常能夠啟用它們的主要來源推出下一代產品的來源。

And this is currently at play in some respects, some there's a competitive dynamic where a second source is being brought onto to help our customers in other cases where we're the benefactor of being a second source to some of our competition.

目前，這在某些方面正在發揮作用，有些方面存在競爭動態，在其他情況下，我們是某些競爭對手的第二來源的受益人，第二來源正在被引入來幫助我們的客戶。

So it goes both ways.

所以這是雙向的。

Also.

也.

I would add that on HPS. products, there's a little bit of a different dynamic at play of HPS. products are typically single sourced for the life of the program, and that's given the stringent qualification process on and also next-generation products.

我會在 HPS 上添加這一點。產品中，HPS 有一點不同的動態。產品在專案的生命週期內通常是單一來源的，這是考慮到下一代產品的嚴格資格流程。

I think we are awarded to the incumbent assuming a strong initial performance because switching costs are also prohibitive again within our AIIAIMLA., our data center offerings, a lot of our high-value EMS programs are transitioning to HPLC products over time because of the value add, we're able to bring to the equation, which we think is a competitive edge versus our EMS peers.

我認為我們被授予在職者假設強大的初始性能，因為轉換成本在我們的AIIAIMLA 中也再次令人望而卻步。 ，因為價值此外，我們能夠將其納入方程式，我們認為這與我們的 EMS 同行相比具有競爭優勢。

Matt, maybe just to add on one point, which is, as we all know, the pie continues to get bigger.

馬特，也許只是補充一點，那就是，眾所周知，蛋糕繼續變大。

The CapEx spend across the top five hyperscalers who we all support is growing materially this year.

我們都支持的前五名超大規模企業的資本支出今年大幅增加。

Everyone knows that the expectation is that that's going to there's going to be a good level of growth going into next year as well.

每個人都知道，人們的預期是明年也將出現良好的成長水準。

And so as the pie continues to get bigger, our revenue with the hyperscalers is also continuing to grow.

因此，隨著蛋糕不斷變大，我們與超大規模企業的收入也持續成長。

But the win second sourcing is happening on less complex products.

但第二次採購的勝利發生在不太複雜的產品上。

The positive way to look at that is it allows us to redeploy capacity to the more complex products and the more complex products or what Rob just mentioned whether it be HBS. or heavy engineering content.

從積極的角度來看，它允許我們將產能重新部署到更複雜的產品和更複雜的產品上，或者 Rob 剛才提到的，無論是 HBS。或繁重的工程內容。

And so there has not been any dynamics on the competitive landscape.

因此，競爭格局沒有任何動態。

I would say that has surprised us it's really playing out as expected, the.

我想說這讓我們感到驚訝，它確實如預期那樣進行。

Okay, great.

好的，太好了。

Just just in light in line with that and are you still you've talked about being exclusive in terms of the AIML. programs.

只是根據這一點，您仍然談論過在 AIML 方面的排他性嗎？程式。

Is that still the case with your big customer?

你們的大客戶還是這樣嗎？

And I wouldn't say so I would say it's on a program-by-program basis, Matt, some programs were exclusive some programs were not.

我不會這麼說，我會說這是逐一程序的基礎，馬特，有些程序是排他性的，有些程序則不是。

And those dynamics, as I mentioned, we might change over time.

正如我所提到的，這些動態可能會隨著時間的推移而改變。

Yes.

是的。

Okay.

好的。

For a product like this through the product life cycle.

對於這樣的產品來說，它的整個生命週期都是如此。

Got it.

知道了。

Okay.

好的。

Thanks very much.

非常感謝。

Yes, excellent.

是的，非常好。

Thank you so much.

太感謝了。

Your next question comes from the line of Satish this complex of BMO Capital Markets.

您的下一個問題來自薩蒂什（Satish）這個 BMO 資本市場綜合體。

Your line is now open.

您的線路現已開通。

Hey, good morning.

嗨，早安。

And if we look at your CCS growth in the quarter outside of your largest customer, that growth rates with a fair bit more subdued, is that just a function of how you've been prioritizing capacity that has to do with perhaps some tough year-over-year comps on programs you're exposed to the hyperscalers are and any color you could provide would be helpful.

如果我們看看您在最大客戶之外的本季度的 CCS 成長，您會發現成長率相當低，這只是您優先考慮容量的方式的函數，這可能與一些艱難的一年有關 -您接觸過的超大規模程式的年度比較以及您可以提供的任何顏色都會有所幫助。

I'll start off and I'll let Mandeep finished, but but it's not a function of our capacity.

我會開始，然後讓曼迪普完成，但這與我們的能力無關。

I would say we do have ample capacity at our sites, and we're also building forward investing forward to make sure it stays that way.

我想說的是，我們的工廠確實擁有充足的產能，而且我們也正在進行前瞻性投資，以確保維持這種狀態。

As I mentioned in the script, our Kulim factory just came online and we have additional Thailand capacity that's coming online in the second half of 25 are currently ahead of schedule.

正如我在腳本中提到的，我們的居林工廠剛剛上線，我們還有額外的泰國產能將於 25 年下半年上線，目前比計劃提前。

It really has to go with the buying patterns and capacity expansion plans of the hyperscalers.

它確實必須符合超大規模企業的購買模式和產能擴張計劃。

They all have different investment cycles and different expansion plans so it's kind of their bio weapons and we'll be able to kind of happy to support each of them.

他們都有不同的投資週期和不同的擴張計劃，所以這是他們的生物武器，我們將很樂意支持他們每個人。

Some are heavier this year than might be heavier next year.

今年有些比明年可能更重。

And just to build on that data.

只是為了以這些數據為基礎。

So the growth that we saw in the first quarter that you're seeing in comms is being started off by our largest customer.

因此，我們在第一季看到的通訊領域的成長是由我們最大的客戶開始的。

What we're encouraged with is that the growth that we're seeing in comms going into Q2 is now spreading to the rest of the hyperscaler customers.

令我們感到鼓舞的是，我們在第二季度看到的通訊成長現在正在蔓延到其他超大規模客戶。

And so while the point you made is very valid.

因此，儘管您提出的觀點非常有效。

As you look at the first quarter, when we're looking at it in terms of the full year, we are seeing growth across a number of customers, not just one or two.

當你看第一季時，當我們從全年的角度來看時，我們看到許多客戶的成長，而不僅僅是一兩個客戶。

Okay, that's helpful.

好的，這很有幫助。

In terms with respect to margins, maybe it's too early to talk about 2025.

就利潤率而言，現在談論 2025 年可能還為時過早。

But as we think about the fact that you've got this weakness in them, capital equipment and industrial, which may improve later in the year and into next year.

但當我們考慮到資本設備和工業領域存在弱點時，這些弱點可能會在今年稍後和明年有所改善。

And then you've got the growing HPS. mix.

然後你會看到不斷成長的 HPS。混合。

Is there any reason for why we should not expect margins to be sustainable or to expand next year?

我們有什麼理由不期望明年的利潤率能夠持續或擴大？

Any any offsetting constraints we should think about.

我們應該考慮任何抵消限制。

And yes, I'll start off and Rob can add on if needed.

是的，我會開始，如果需要，羅布可以補充。

We're happy with the way that the margins are coming together.

我們對利潤的整合方式感到滿意。

Clearly, 6.2% in the first quarter, highest in our history and the outlook now that we're providing a 6.1% up year over year and when it when achieved will be the highest in the Company's history from a mix perspective, hyperscaler margins because of the level of complexity that is involved is accretive to the overall company.

顯然，第一季的成長率為6.2％，是我們歷史上的最高水平，現在我們提供了6.1％ 的同比增長，從混合角度來看，當實現這一目標時，這將是公司歷史上最高的，超大規模的利潤率因為所涉及的複雜程度會對整個公司產生影響。

And so as we continue to grow hyperscaler revenues, we are looking to maintain CCS margins plus or minus a little bit.

因此，隨著我們繼續增加超大規模提供者的收入，我們希望保持 CCS 利潤率的上下浮動。

The opportunity, I think as you talk about for next year really goes to ATS.

我認為，正如您所談論的明年的機會確實屬於 ATS。

So our outlook for EPS right now is to be below 5% on a full year basis, they did 4.7% in the first quarter, but to your point as demand returns and capital equipment, which is profitable by the way.

因此，我們目前對全年每股收益的展望是低於 5%，第一季為 4.7%，但就你的觀點而言，需求回報和資本設備是有利可圖的。

But as the demand comes back, we get leverage benefits.

但隨著需求的回升，我們獲得了槓桿效益。

And as industrial, which is a strong margin business contributes more.

而作為工業，利潤率強勁的業務貢獻更大。

Both of those will help expand margins at S. and so on.

這兩者都將有助於擴大 S. 等公司的利潤率。

We think that we have some opportunities going into '25.

我們認為進入 25 年我們有一些機會。

I'd like to give fixes.

我想提供修復。

Thanks and thank you so much.

謝謝，非常感謝。

Your next question comes from the line of Chesapeake lack of Cormark Securities.

你的下一個問題來自切薩皮克缺乏科馬克證券的路線。

Please go ahead.

請繼續。

Hey, good morning.

嗨，早安。

When you think about the increased guidance for 2024 in the context of the numbers you laid out for 2025 and 2026 at the November Investor Day is, I guess, is the increase really?

當您在 11 月投資者日列出的 2025 年和 2026 年數字的背景下考慮 2024 年指導意見的增加時，我想，這種增加真的嗎？

Is it just the like you said the pipe getting bigger or is there some demand as maybe being pulled forward.

是不是像你說的管子變大了，還是有一些需求，可能會被拉向前。

Hi, Jesse.

嗨，傑西。

First of all, welcome to the call, and I'm really pleased to see Core-Mark in providing some coverage.

首先，歡迎您致電，我很高興看到 Core-Mark 提供一些報導。

Takes your question yet.

還接受你的問題。

The demand signals continue to be healthy across hyperscalers to say that pull-ins are not happening and probably wouldn't be accurate because as you see, we came in at or above the high end of our guidance rate in Q2 or excuse me, in Q1.

超大規模企業的需求信號仍然健康，表明拉動沒有發生，而且可能不准確，因為正如您所看到的，我們在第二季度達到或高於指導率的高端，或者對不起，在Q1.

And some of that was fulfilling demand that dropped in as we went through the quarter.

其中一些是滿足本季下降的需求。

And as Robert talked about, because it's a 12-month rolling forecast.

正如羅伯特所說，因為這是一個 12 個月的滾動預測。

We don't have clear visibility to how that revenue that may have been out a few quarters is getting backfilled.

我們不清楚幾季的營收如何得到回補。

But at the higher customer level, we're not seeing shifts in the demand patterns.

但在更高的客戶級別，我們沒有看到需求模式改變。

And so what that would imply is that, yes, we're continuing to see strong growth in the back half of this year as we talked about at the beginning of the Q&A, double digit growth rates and the demand signals continue to be positive for data center deployments going into 2025.

因此，這意味著，是的，正如我們在問答開始時談到的那樣，今年下半年我們將繼續看到強勁的增長，兩位數的增長率和需求信號繼續對數據中心部署將於2025 年進行。

But then to your point, we're already now ahead or pretty close to what our 2025 outlook was in in April of 2024.

但就您而言，我們現在已經領先或非常接近 2024 年 4 月的 2025 年展望。

And so we'll wait for six months to really give a better outlook for 2025.

因此，我們將等待 6 個月，才能真正給出 2025 年更好的前景。

But right now, we're not feeling like it's feeling from 2025.

但現在，我們並沒有感受到 2025 年的感覺。

The demand signals just seem to be that the overall tide is rising.

需求訊號似乎只是整體潮水正在上漲。

Okay, that's helpful.

好的，這很有幫助。

And then can you just comment a little bit on what you're seeing in the networking side of things kind of beyond the hyperscalers more in the traditional cloud space.

然後，您能否對您在網路方面看到的東西（超出傳統雲端空間中的超大規模）發表一些評論。

Where most of our networking business is actually going to the cloud providers in terms of 400 gig, 800 gig switches on the OEM side, we are seeing continued as softness as the industry burned through some excess inventory.

我們的大部分網路業務實際上都流向了雲端提供商，即 OEM 方面的 400 G、800 G 交換機，但隨著行業消耗掉一些過剩庫存，我們看到市場持續疲軟。

We do see some of that recovering in the back half of the year.

我們確實看到其中一些在今年下半年有所復甦。

As you know, the OEM side of the business are exposed, not just hyperscalers, but also the small medium businesses.

如您所知，OEM 方面的業務是暴露的，不僅是超大規模企業，還有中小型企業。

And those capital type of deployments have been impacted from the macroeconomic conditions, but we don't believe that that demand is going to be permanently gone down, but there does continue to be a slowdown of the hyperscaler market.

這些資本類型的部署受到了宏觀經濟狀況的影響，但我們認為需求不會永久下降，但超大規模市場確實會繼續放緩。

Okay.

好的。

I'll pass the line exotic.

我會通過異國情調的線路。

Thanks, Justin.

謝謝，賈斯汀。

Thank you.

謝謝。

So much.

非常。

Your next question comes from the line of Paul Treiber of RBC Capital Markets.

您的下一個問題來自 RBC 資本市場的 Paul Treiber。

For banks and good morning.

對於銀行，早安。

You've been very successful your largest customer over the last couple of years.

在過去的幾年裡，您作為最大的客戶取得了巨大的成功。

Are you going to have what's your visibility and strategy that tries to replicate that degree of success with the other hyperscaler customers?

您是否打算擁有什麼知名度和策略來嘗試與其他超大規模客戶複製這種成功程度？

So I would say we are actually replicating that success with other customers.

所以我想說，我們實際上正在與其他客戶複製這種成功。

I mean we have very strong positions with the majority of the big hyperscalers.

我的意思是，我們在大多數大型超大規模企業中都擁有非常強大的地位。

We've won a number of new programs with those hyperscalers that are either in development or currently in ramping.

我們已經贏得了許多正在開發或目前正在擴展的超大規模的新項目。

And so we're not we're not solely reliant on that one customer.

因此，我們並不完全依賴這一客戶。

We have actually very healthy portfolios across a number of hyperscalers and across a number of platforms within those hyperscalers, it just so happens that our number one customer happens to be a heavy investment mode right now.

實際上，我們在許多超大規模企業以及這些超大規模企業內的許多平台上擁有非常健康的投資組合，碰巧我們的第一大客戶現在恰好是重度投資模式。

And those those are driving some of the concentration numbers over time.

隨著時間的推移，這些因素正在推動一些濃度的上升。

Those investment levels might come down, but other hyperscaler investment levels will increase.

這些投資水準可能會下降，但其他超大規模投資水準將會增加。

So our overall hyperscaler portfolio is actually very, very healthy So that's that's helpful to hear the from the earlier comments on being comfortable with the customer concentration, is that, you know, we're not getting too specific outlook for or what you see that customer concentration.

因此，我們的整體超大規模產品組合實際上非常非常健康，因此，從之前關於對客戶集中度感到滿意的評論中聽到這一點很有幫助，那就是，你知道，我們沒有得到太具體的前景或你所看到的客戶集中度。

Could you just give us a sense of why you're comfortable with it and use it at 34% this past quarter?

您能否告訴我們為什麼您對此感到滿意並且上個季度的使用率為 34%？

Yes, because it's some it's not a single program on why it's multiple growth programs across multiple technologies and crossing a decade of the cycle, even over a decade of past relationships and with continued strong performance not just on high value OEMS, but across engineering engagements as well.

是的，因為它不是一個單一的計劃，說明了為什麼它是跨多種技術和跨越十年周期的多個增長計劃，甚至是過去十年的合作關係，並且不僅在高價值OEMS 上，而且在整個工程業務中持續表現強勁以及。

So it's a very sticky relationship, one backed by mutual respect and high performance.

因此，這是一種非常黏性的關係，以相互尊重和高績效​​為後盾。

We never take these things for granted, but we're happy with the breadth of solutions that we're providing this customer.

我們從不認為這些事情是理所當然的，但我們對為客戶提供的廣泛解決方案感到滿意。

And then just lastly, just on the capacity side of the equation, I mean, you mentioned that you do have capacity.

最後，就等式的能力而言，我的意思是，你提到你確實有能力。

Can you speak to your capacity utilization and how it compares to what you've historically averaged?

您能談談您的產能利用率以及它與歷史平均值的比較嗎？

And then are you seeing additional opportunities with your customers or for co-investments add in capacity expansion?

那麼您是否看到了與客戶合作的更多機會或共同投資增加產能擴張的機會？

Yes.

是的。

So your capacity or utilization is extremely high in our Asia sites where the majority of our demand is fulfilled with our business, highly utilized sites and highly leveraged sites are very profitable sites and that's what you're seeing in our results.

因此，您在我們亞洲站點的容量或利用率非常高，我們的大部分需求都是透過我們的業務來滿足的，高利用率站點和高槓桿站點是非常有利可圖的站點，這就是您在在我們的結果中所看到的。

And we carefully manage our capacity.

我們仔細管理我們的產能。

We have decided to invest in some additional capacity, and we think those investments should take care of us for the next clip of time.

我們決定投資一些額外的產能，我們認為這些投資應該會在接下來的一段時間內照顧我們。

We don't foresee any need for any additional co-investments at this time.

我們預計目前不需要任何額外的共同投資。

We think the expansions that we are underway should take care of us for a period of time and keep those high utilization rates.

我們認為我們正在進行的擴張應該能在一段時間內照顧我們並保持高利用率。

Paul, just to add on to that, in November, when we gave our Investor Day, we provided a revenue outlook going out to 2026.

Paul，補充一點，11 月，當我們舉行投資者日活動時，我們提供了截至 2026 年的收入前景。

The range was $9.5 billion to $10 billion, and we had stated at that time that we believe that we have a footprint now to fulfill that.

這個範圍是 95 億到 100 億美元，我們當時曾表示，我們相信我們現在有能力實現這一目標。

And so we don't need to greenfield a brand-new factory in a new country in order to keep up with that demand outlook and so it's one of the things that we're pleased about is that we believe we're able to, while CapEx may be a little bit elevated, more or less in line with our historical levels while still being able to grow revenue.

因此，我們不需要在新的國家新建一家工廠來滿足需求前景，因此我們感到高興的事情之一是我們相信我們能夠，雖然資本支出可能會有點高，但或多或​​少符合我們的歷史水平，同時仍能增加收入。

And I think that again to persist, it's Bob.

我認為鮑伯再次堅持了下來。

Thank you so much.

太感謝了。

And as a reminder, if you wish to ask a question, please press star one.

提醒一下，如果您想提問，請按星號一。

Your next question comes from the line of Todd Coupland of CIBC.

您的下一個問題來自 CIBC 的 Todd Coupland。

Your line is now open.

您的線路現已開通。

Great.

偉大的。

Thanks, and good morning, everyone.

謝謝，大家早安。

I wanted to ask specifically about compute.

我想具體詢問有關計算的問題。

We're seeing that decelerate on into Q2 and into the second half of the year.

我們看到這種情況在第二季和下半年有所放緩。

What factors are you looking for in terms of really reaccelerating that line and give us any indication on when you think that might happen?

您正在尋找哪些因素來真正加速這條線，並向我們提供您認為何時可能發生的任何指示？

Thanks a lot.

多謝。

Yes, I'll start.

是的，我會開始。

So we compute in them in Q1 was up over 130% year over year.

因此，我們計算第一季同比增長超過 130%。

Compute in Q2 is up in the 70% range on a year-over-year basis.

第二季的計算量年增了 70%。

I would not call that at least in the first half of the year or decelerating as we go into the second half of the year.

至少在今年上半年我不會這麼說，或者當我們進入下半年時會減速。

Some of that is a resource outlook is driven by a little bit of murkiness as we exit the year.

其中一些原因是，隨著今年的結束，資源前景受到一些陰暗因素的推動。

But broadly speaking, compute on volume and demand remains a material constraint.

但從廣義上講，對數量和需求的計算仍然是一個重大限制。

So again, demand exceeds supply.

再次，需求超過供給。

And as material availability becomes available, that might give us an opportunity to increase our output but this is the visibility that we have at this point in time.

隨著材料的可用性變得可用，這可能會給我們一個增加產量的機會，但這就是我們目前所擁有的可見性。

Yes.

是的。

And Todd, I would maybe just add to that to say.

托德，我也許想補充一下。

But as we talked about when the demand cycle for hyperscalers start to really accelerate in the middle of last year is that we believed it was going to start with compute and that it was going to start migrating over to AII. type of networking, which is for energy switches, but moving into 800 switches as well.

但正如我們所討論的，當超大規模企業的需求週期在去年年中開始真正加速時，我們相信它將從計算開始，並將開始遷移到 AII。網路類型，適用於能源交換機，但也適用於 800 個交換器。

And so we're starting to see that customers have a fixed level of capital and they choose on where they deploy that capital.

因此，我們開始看到客戶擁有固定的資本水平，他們選擇將資本部署在哪裡。

And what we're seeing right now is more of a shift towards the comp side because communications is a large part of our portfolio.

我們現在看到的更多是向公司方面的轉變，因為通訊是我們產品組合的很大一部分。

We think that we're going to come out some more head because of that, not to say that that compute is going away because the other dynamic that is keep in mind is that the comps are becoming quite high.

我們認為我們會因此而更加清醒，並不是說計算正在消失，因為要記住的另一個動態是競爭變得相當高。

And but overall, we are seeing a healthy demand coming out of Q1 and going into Q2.

但總體而言，我們看到從第一季到第二季的健康需求。

And if I could just follow up on that with Open Compute.

如果我可以透過開放計算來跟進這一點。

You've had this debate on merchant silicon versus custom silicon and obviously the hyperscalers are all coming up with their their own custom processors that's yet to come.

您已經就商用晶片與客製化晶片展開了爭論，顯然超大規模廠商都在推出自己的客製化處理器，但這些處理器尚未問世。

I guess I would have thought that that might have started to flow into your business, and I'm just wondering if you could help bridge bridge that gap of understanding?

我想我會認為這可能已經開始流入您的業務，我只是想知道您是否可以幫助彌合這種理解差距？

Excellent.

出色的。

Yes.

是的。

So we are definitely heavily tilted towards custom silicon versus merchant silicon, and we have been the benefactor of that switch as you see from the announcements in the press that the hyperscalers are continuing to invest in custom silicon mean as these new custom silicon comes to market, we feel confident that we'll be able to get access to them and also provide these types of solutions to our customers moving forward.

因此，我們絕對更傾向於定制晶片而不是商用晶片，並且我們一直是這種轉變的受益者，正如您從媒體公告中看到的那樣，隨著這些新的定制晶片進入市場，超大規模企業將繼續投資定制晶片。

So that trend is continuing, and I think we're taking advantage of it.

因此，這種趨勢正在持續，我認為我們正在利用它。

Thanks for the color appreciate it.

感謝您的顏色欣賞。

Thanks, Dan.

謝謝，丹。

Thank you so much.

太感謝了。

And there are no further questions at this time.

目前沒有其他問題。

Presenters.

主持人。

I would now like to turn the call back to our speaker, Rob Mionis for closing remarks.

現在我想將電話轉回給我們的發言人羅布·米奧尼斯 (Rob Mionis)，讓他致閉幕詞。

Thank you.

謝謝。

Remember, overall, I'm very pleased that we posted another solid quarter, and this strong momentum is giving us confidence to increase our outlook for 2024 I'm also very pleased by our continued strong execution and encouraged with our strong market position, especially with some new products like 800 G. and strong and growing markets.

請記住，總體而言，我很高興我們又發布了一個穩定的季度業績，這種強勁的勢頭使我們有信心提高2024 年的前景。對我們強大的市場地位感到鼓舞，尤其是一些新產品，如 800 G. 以及強勁且不斷增長的市場。

I thank you all for joining today's call, and we look forward to updating you next quarter.

我感謝大家參加今天的電話會議，我們期待在下個季度為您提供最新消息。

Thank you, presenters, and thank you, ladies and gentlemen.

謝謝各位主持人，也謝謝各位女士們、先生們。

This concludes today's conference call.

今天的電話會議到此結束。

Thank you for your participation, and you may now disconnect and have a good day.

感謝您的參與，您現在可以斷開連接並祝您有美好的一天。

And yes.

是的。