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. (Operator Instructions) And this call is being recorded on Thursday, April 25, 2024. I would now like to turn the conference over to Craig Oberg, Vice President of Investor Relations and Corporate Development. Please go ahead.

早安，女士們、先生們，歡迎參加 Celestica 2024 年第一季財報電話會議。（操作員說明）此通話錄音時間為 2024 年 4 月 25 日星期四。我現在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)。請繼續。

Good morning and thank you for joining us on Celestica's first quarter 2024 earnings conference call. On the call today are Rob Mionis, President and Chief Executive Officer, and Mandeep Chawla, Chief Financial Officer. 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.

早安，感謝您參加 Celestica 2024 年第一季財報電話會議。今天參加電話會議的有總裁兼執行長 Rob Mionis 和財務長 Mandeep Chawla。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, actual results could differ materially from a conclusion, forecast or projection in the forward-looking statements made today. Certain material factors and assumptions are applied in drawing any such statements. We undertake no obligation to update these forward-looking statements unless expressly required to do so by law.

雖然這些前瞻性陳述代表了我們目前的判斷，但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。在繪製任何此類陳述時會應用某些重要因素和假設。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 or 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、調整後每股收益或調整後 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 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 sedarplus.ca and sec.gov, as well as in our press release that was distributed yesterday and which may be found on our website unless.

有關可能導致實際結果與前瞻性信息中的結論預測或預測存在重大差異的重大因素的附加信息，以及可能影響天弘未來業績結果的風險因素以及此類非國際財務報告準則財務指標的調節表直接可比較的IFRS 財務指標包含在我們在sedarplus.ca 和sec.gov 上公開提交的文件中，以及我們昨天發布的新聞稿中，除非您可以在我們的網站上找到該新聞稿。

Otherwise specified, all references to dollars on this call are to US dollars and per share information is based on diluted shares outstanding. Let me now turn the call over to Rob.

除非另有說明，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。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. We started off the year with a very strong first quarter, achieving revenue of $2.21 billion. 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. Our solid non-IFRS operating margins resulted in adjusted free cash flow of $65 million during the quarter.

謝謝克雷格，大家早安，謝謝您參加今天的電話會議。我們以非常強勁的第一季伊始，實現了 22.1 億美元的營收。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。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。

The 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. 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. 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.

今年年初的強勁業績是由我們的 TCS 領域的持續強勁推動的，以及我們的超大規模客戶的持續需求強勁所支持的。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。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. 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.

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。在我們的資本設備業務經歷了幾個艱難的季度之後，收入似乎已經穩定下來，客戶預測表明未來幾季的年成長將加速。

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

我們也很高興分享我們最近收購的最新消息。本季結束後，我們簽署了一項最終協議，以 3,600 萬美元的價格收購 NCS Global Services LLC（一家位於美國的 IT 基礎設施和資產管理公司）。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. 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 who will provide further details on our first quarter financial performance and our guidance for the second quarter of 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。總的來說，我們對今年的開局感到非常滿意。我們堅實的執行力、強勁的財務表現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，他將提供有關我們第一季財務業績和 2024 年第二季指導的更多詳細資訊。

Mandeep, over to you.

曼迪普，交給你了。

Thank you, Rob, and good morning, everyone. First quarter revenue came in at $2.21 billion above the high end of our guidance range and up 20% year over year. The increase was supported by stronger than expected growth in our CCS segment, partially offset by an anticipated modest decline in our ATS segment.

謝謝你，羅布，大家早安。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%。這一成長得益於 CCS 業務強於預期的成長，但 ATS 業務預期的小幅下滑部分抵消了這一成長。

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

我們的第一季。非 IFRS 營業利潤率為 6.2%，年增 100 個基點，標誌著我們的季度非 IFRS 營業利潤率首次超過 6.0%。利潤率的成長是由於有利的組合和生產效率而提高了兩個部門的獲利能力。

Our adjusted earnings per share for the first quarter was $0.86, which exceeded the high end of our guidance range. 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. Our first quarter adjusted effective tax rate expectation was 20%, assuming that global minimum tax would be enacted in Canada, by March 31. 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.

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。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。假設加拿大將於 3 月 31 日之前頒布全球最低稅，我們第一季調整後有效稅率預期為 20%。鑑於立法尚未頒布，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. 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. The year over year decline in ATS segment revenue was driven by continued demand softness in our industrial business. These declines were partially offset by solid year-over-year growth in our A&D business. In addition, our capital equipment business saw revenue stabilize on a year-to-year basis, registering modest growth compared to the prior year period.

延續我們的細分市場表現。第一季 ATS 營收為 7.68 億美元，年減 3%，符合我們低個位數百分比下降的預期。ATS 部門營收年減是由於我們的工業業務需求持續疲軟。這些下降被我們的 A&D 業務同比穩健成長部分抵消。此外，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. 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. CCS segment revenue accounted for 65% of total company revenues in the quarter. 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. The growth was driven by continued demand strength for AIML compute products from our hyperscaler customers.

ATS部門收入佔第一季總收入的35%。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 部門營收佔本季公司總營收的 65%。第一季我們的企業端市場營收年增72%，超出我們60%的高成長預期。這一成長是由我們的超大規模客戶對 AIML 運算產品的持續需求強勁推動的。

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. 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. HPS revenue was $519 million in the quarter, up 40% year over year and accounted for 23% of total company revenues in the quarter.

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。我們的通訊終端市場恢復成長是由超大規模客戶對 HPS 網路產品的需求增加所推動的，主要是支援 AIML 基礎設施。該季度 HPS 營收為 5.19 億美元，年增 40%，佔該季公司總營收的 23%。

The growth in the first quarter was driven primarily by stronger networking demand from hyperscaler 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. 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.

第一季的成長主要是由超大規模客戶更強勁的網路需求推動的，包括新項目的增加。談到分部利潤率，在有利的組合推動下，ACS 第一季分部利潤率為 4.7%，比去年同期成長 30 個基點。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，從而推動了強勁的生產力。

During the first quarter, we had one customer that accounted for more than 10% of total revenues, representing 34% of sales for the quarter. 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.

第一季度，我們有一個客戶佔總收入的 10% 以上，佔該季度銷售額的 34%。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. 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. 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. 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.

接下來討論一些額外的財務指標。第一季依照國際財務報告準則計算的淨利為 1.02 億美元，即每股收益 0.85 美元，去年同期淨利為 2,500 萬美元，即每股收益 0.2 美元。第一季調整後毛利率為 10.2%，年增 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。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. 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. Cash deposits were $719 million at the end of the first quarter, a $185 million lower sequentially and down by $91 million compared to the prior year period. Our cash deposits decreased as expected as a result of higher deliveries on a number of ramping projects. Cash cycle days were 69 during the first quarter, down 3 days sequentially and 6 days lower in the prior year period.

轉向營運資金。第一季末，我們的庫存餘額為 19.6 億美元，季減 1.5 億美元，年減 4.4 億美元。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。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。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. Capital expenditures for the quarter were $40 million or approximately 1.8% of revenue, flat compared with the prior year period. 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.

轉向現金流。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。與我們上季度的討論一致，我們繼續預計 2024 年的資本支出將佔收入的 1.75% 至 2.25%。在第一季度，我們的兩個新設施擴建開始運作。我們泰國工廠的第一期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 2025, 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 2025 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. We generated $65 million in the first quarter compared to $9 million in the prior year period.

轉向我們調整後的自由現金流。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. 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 is 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.

繼續討論一些其他關鍵指標。第一季末，我們的現金餘額為 3.08 億美元。加上我們循環貸款下約 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預期的業務需求。第一季末我們的總負債為 6.32 億美元，淨負債部位為 3.24 億美元。

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. As of March 31, 2024, we were compliant with all financial covenants under our credit agreement. During the first quarter, we purchased approximately 460,000 shares for cancellation under our abnormal course issuer bid at a cost of $17 million. We intend to continue to repurchase shares on an opportunistic basis in 2024.

我們第一季的總負債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%，比上一季下降 0.1%，與去年同期相比下降 0.3%。截至 2024 年 3 月 31 日，我們遵守信用協議下的所有財務契約。第一季度，我們根據異常發行人出價購買了約 46 萬股用於註銷，成本為 1,700 萬美元。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. 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. 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 of 2023.

現在轉向我們對 2024 年第二季的指導。第二季營收預計在 21.75 億美元至 23.25 億美元之間，達到該範圍的中點，將比去年同期成長 16%。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. Our adjusted SG&A expense for the second quarter is expected to be in the range of $67 million to $69 million. 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. Consistent with our approach last quarter, our guidance assumes that our income will be subject global minimum tax.

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。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。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。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. 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. 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.

現在轉向我們對 2024 年第二季的最終市場展望。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。在超大規模客戶對 HPS 網路產品需求增強的推動下，我們預期通訊終端市場的營收將年增 40% 左右。

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 all 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所有計算程序的預期需求增長的推動，我們預計收入將同比增長 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. Before discussing the outlook for our end markets, I would like to provide an update to our annual financial outlook for 2024. We are pleased to be raising our full year outlook based on our solid performance in the first quarter and the positive momentum we are seeing across a number of our businesses.

謝謝你，曼迪普。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。基於第一季的穩健表現以及我們在多項業務中看到的積極勢頭，我們很高興上調全年展望。

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 compared to 2023. 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.

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，與 2023 年相比分別成長 14% 和 36%。我們的非 IFRS 營業利潤率目前預計約為 6.1%，與 2023 年相比提高 50 個基點。最後，我們將全年調整後自由現金流前景提高至 2.5 億美元。

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. 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, 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 our economy over the long term and will help drive robust and sustainable growth in our industrial business in the coming years.

現在轉向我們的業務前景，從我們的 ATS 部門開始，在 ATS 內部，我們繼續預計 2024 年上半年將比 2023 年有所下降，而下半年將恢復同比增長年。因此，我們目前預計 2024 年全年 ATS 部門收入將與 2023 年基本持平。在我們的工業業務中，我們相信，從長遠來看，包括電動車充電、智慧能源、車輛和工廠自動化在內的關鍵子市場將繼續受到我們經濟有利的長期趨勢的支持，並將有助於推動我們的強勁和永續成長。

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. However, 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放緩的情況下正在解決庫存積壓問題。然而，我們確實預計需求將隨著時間的推移而改善，營收將在 2024 年持續改善，預計到第四季將恢復年成長。

In our A&D business, the recovery in air traffic continues to drive solid commercial aerospace growth. We expect broad-based demand strength in our commercial aerospace portfolio to persist throughout 2024. We also anticipate healthy growth in our defense business this year supported by the ramping of new programs.

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。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。我們也預計，在新項目增加的支持下，今年我們的國防業務將健康成長。

In our capital equipment business, we are seeing early signs of a recovery with revenue stabilizing both year-over-year and sequentially in the first quarter. 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.

在我們的資本設備業務中，我們看到了復甦的早期跡象，第一季營收年比和季比穩定。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，這主要得益於記憶體市場的復甦。

Within our portfolio, stronger base demand and the ramping of newly won programs, our affirming our outlook for return to growth in 2024. 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 automotives. We anticipate that these trends will support continued momentum and our portfolio into next year.

在我們的投資組合中，更強勁的基礎需求和新贏得的項目的增加，我們肯定了 2024 年恢復成長的前景。目前的市場預測表明，到 2025 年，晶片製造商的資本投資將繼續增長，以支持對使用生成式人工智慧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。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. 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. The demand strength from our hyperscaler customers continues to support very strong growth in our CCS segment.

現在轉向我們的 CCS 部分。基於 CCS 領域的強勁前景，在企業和通訊終端市場強勁需求的支持下，我們將 2024 年營收成長預期提高至 20% 左右。我們的超大規模客戶的需求強度持續支持我們 CCS 領域的強勁成長。

In 2023, hyperscalers accounted for 62% of our CCS segment revenues, and we expect that number to grow in 2024. 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 remain the primary driver underpinning this investment cycle.

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。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. 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.

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。因此，我們將繼續進行必要的投資，包括在產能擴張和工程能力方面的投資，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. We anticipate enterprise demand to remain strong in the coming quarters, supported by increasing AIML compute deployments and new program ramps.

現在轉向我們的終端市場，我們的企業終端市場的需求前景仍然非常健康，因為我們繼續受益於超大規模企業對 AIML 運算能力不斷增長的投資。我們預計，在 AIML 運算部署的增加和新項目的增加的支持下，未來幾季的企業需求將保持強勁。

Our communications end market saw stronger than anticipated demand to start the year, and we expect this momentum to accelerate in the coming quarters. 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年初的需求強於預期，我們預計這一勢頭將在未來幾季加速。預計在超大規模客戶對 HVS 網路產品的強勁需求以及新計劃的增加的支持下，整個 2024 年將持續成長。在我們的 HPS 業務中，需求很大程度上反映了我們對通訊終端市場的需求。

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

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。此外，包括我們的 800G 平台在內的新計劃風潮預計將在全年和 2025 年期間不斷增加。

We feel that our portfolio is well positioned for another very strong year in 2024. We continue to prioritize the fundamentals, adherence to our strategic roadmaps, solid execution and prudent decision making in all of our businesses 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.

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。無論基礎市場的動態如何，我們在所有業務中都將繼續優先考慮基本面、遵守我們的策略路線圖、堅定的執行力和審慎的決策。我們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. Thank you.

現在，我想將電話轉給接線員詢問問題。謝謝。

(Operator Instructions) Robert Young, Canaccord Genuity.

（操作員說明）Robert Young，Canaccord Genuity。

Hi, good morning. Congrats on the quarter. The first question I had was related to the full year guide. It was just simply -- take the Q1 and Q2 guide out of there, it implies a deceleration in the top line in the second half. 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?

嗨，早安。恭喜本季。我的第一個問題與全年指南有關。很簡單——去掉第一季和第二季的指導，這意味著下半場的頂線減速。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. 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. So hyperscaler customers generally provide about a 12 month outlook. But beyond six months, there's some demand dynamics at play. Demand continues to exceed supply, so as material availability improves, orders accelerate.

早安，羅賓，謝謝你。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。因此，超大規模客戶通常會提供約 12 個月的展望。但六個月之後，就會出現一些需求動態。需求繼續超過供應，因此隨著材料可用性的改善，訂單加速。

And then secondarily, there is some variability in customer deployment plans driven by customers' resource constraints or to some extent it's technology transitions. So our visibility into the fourth quarter is a bit murky. It should firm up in the next few months, but hence, our view of a flattish relative to the first half of full year outlook.

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。因此，我們對第四季的看法有點模糊。它應該在未來幾個月內堅挺，但因此，我們認為全年前景相對於上半年持平。

Hey, Rob. Mandeep here. Just to build on what Rob was mentioning, the [$9,100] reflects 14% year-over-year growth. 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. I think the important thing to take away is that the demand environment in CCS in particular remains healthy.

嘿，羅布。曼迪普在這裡。就 Rob 所說的而言，[9,100 美元] 反映了 14% 的同比增長。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。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, 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，這意味著今年下半年。所以這些討論我們仍在繼續。

Okay, thanks. That's very helpful. Second question for me would be on the customer concentration. I think, last quarter, you suggested that networking recovery would maybe help that out a little bit. And so with HPS returned to growth, I'm surprised to see the concentration actually go up. And so is that networking plus AI at that first largest customer? Or is there any other dynamic at play? And then I'll pass the line.

好的，謝謝。這非常有幫助。我的第二個問題是客戶集中度。我認為，上個季度，您建議網路恢復可能會有所幫助。因此，隨著 HPS 恢復增長，我驚訝地發現濃度實際上有所上升。那麼，網路加人工智慧是否屬於第一個最大的客戶呢？或者還有其他動力在運作嗎？然後我就過線了。

Yes. You hit on it, Rob, which is 34% with our biggest customer. At the same time, we saw a very large level of growth happening in comms, and it's continuing into the second quarter. And it just underscores what we had talked about last quarter, which is we do a number of programs, 20 plus programs with this largest customer. 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.

是的。Rob，你猜對了，我們最大的客戶有 34% 的比例。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​​。這只是強調了我們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。因此，我們不僅看到了該大客戶在計算上的需求強度，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.

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援。

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.

我還要補充一點，我們的許多超大規模客戶以及這些相同的平台、通訊企業的超頂級客戶成長仍然非常健康。

And just as a follow on there. The HPS growth, I would assume is driven by 400 gig switch. Is that spread across a larger number of customers? Is it broader than just that large customer? Maybe you could give us a sense of how many customers you have there, how broad that businesses is?

就像那裡的後續一樣。我認為 HPS 的成長是由 400 gig 交換器推動的。這是否分佈在更多的客戶身上？它比那個大客戶更廣嗎？也許您可以讓我們了解您在那裡有多少客戶，業務範圍有多大？

Yes, 400 gig is across a number of customers. We're also ramping 800 gig switches this year and into next year. Next year, additional customers will come on 800G switch ramps. And then on HPS, it's also important to point out that HPS is not just limited to networking. There's also a fair amount of HPS content in compute modules in states as well.

是的，400 演出涉及多個客戶。今年和明年我們還將增加 800 台演出交換器。明年，更多客戶將使用 800G 交換器。然後關於 HPS，同樣重要的是要指出 HPS 不僅僅局限於網路。各州的計算模組中也有相當多的 HPS 內容。

Okay. Thanks. I'll pass the line.

好的。謝謝。我會過線。

Daniel Chan, TD common.

陳丹尼爾，TD普通。

Hi, good morning. And maybe just to top-up on that is on the communications question, as you get more mix of 800G, how does that affect the financials? In other words, what does the price and margin profile difference between the 800G and a 400G program?

嗨，早安。也許只是補充一下通訊問題，當您獲得更多 800G 組合時，這對財務有何影響？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. So the ASPs, of course, change a little bit as you go from 400G to 800G. They are not necessarily twice as much. And so it's really a conversation of how many units are being shipped, et cetera. 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.

嗨，丹，謝謝你的提問。因此，當從 400G 變成 800G 時，ASP 當然會發生一些變化。它們不一定是兩倍。因此，這實際上是關於正在運送多少單位的對話，等等。我認為，如果我們只是提升水平並查看整體收入，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. We're announcing customers not only at work with us on program development around 800G products, but also taking 400G products in the meantime as well. And so it's nice to see that we're actually shipping both products right now. We would expect naturally for 400G to start slowing down going into next year that filled more than one for one on the 800G set.

至於您提出的問題，如您所知，400G 需求實際上是由於庫存過多而導致通訊速度減慢。我們宣布客戶不僅與我們合作開發800G產品的程序，同時也開始開發400G產品。因此，很高興看到我們現在實際上正在發貨這兩種產品。我們自然預計 400G 的速度會在明年開始放緩，從而在 800G 設備上佔據一比一的份額。

Thanks. That's helpful. When you talk to your cloud customers, and you look at the AI data center architecture, 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?

謝謝。這很有幫助。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？

That's a hard one to discern. 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. So hence, we're firing on all cylinders. We have HBS content across compute modules. We provide high-value EMS across compute modules. We have HPS content on 400 and 300 switches. And we're also in advanced development on future generation network devices. And we also, as you know, have storage solutions, both the HPS and the traditional as well. So our customers are really taking advantage of our full solutions.

這是很難辨別的。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。因此，我們正在全力以赴。我們擁有跨運算模組的 HBS 內容。我們提供跨運算模組的高價值 EMS。我們在 400 和 300 交換器上有 HPS 內容。我們也正在進行下一代網路設備的高級開發。如您所知，我們還擁有 HPS 和傳統儲存解決方案。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, not all hyperscalers are creative people. And there are some hyperscalers that lean towards more complex, challenging product deployments. And that really works out well for us. 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 requirements of certain hyperscalers. 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.

丹，如您所知，並非所有超大規模企業都是有創造力的人。有些超大規模企業傾向於更複雜、更具挑戰性的產品部署。這對我們來說確實很有效。您之所以看到 HPS 的成長量，是因為這些解決方案真正滿足了某些超大規模企業的需求。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，這是我們希望看到的。

Great. That's helpful. And maybe squeezing one more in on the enterprise. The enterprise growth is expected to decelerate next quarter. Have you been successful in diversifying your hyperscale customer base in AI compute, just given your experience with the server using custom AI chipsets? And if so, what does that ramp look like or is this the new run rate for the remainder of the year? Thank you.

偉大的。這很有幫助。或許還可以對企業再施加壓力。預計下季企業成長將放緩。根據您在使用自訂 AI 晶片組的伺服器方面的經驗，您是否已成功實現 AI 運算領域超大規模客戶群的多元化？如果是這樣，這個斜坡是什麼樣的，或者這是今年剩餘時間的新運行率？謝謝。

I'll start off and then maybe finish the second quarter dynamic in terms of enterprise up by in the 20s. The main driver is really tough comps from a year ago. But what we're seeing in the second quarter is also storage demand declining, but we're seeing very healthy, steady demand from compute as well. We're also, as we mentioned earlier, happy that comms is up significantly, and CCS is up significantly as well.

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。主要驅動因素是一年前的艱難比賽。但我們在第二季看到的儲存需求也在下降，但我們也看到運算需求非常健康、穩定。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. And as we did talk about the demand signals continue to be healthy. We do serve a number of customers on the server side. But I think what's important to look at comms and enterprise side is as we up-level it to total revenue with our hyperscalers, we're seeing that growth continuing.

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。正如我們所討論的，需求訊號仍然健康。我們確實在伺服器端為許多客戶提供服務。但我認為，在通訊和企業方面，重要的是當我們將其提升到超大規模的總收入時，我們看到這種成長仍在繼續。

They're shifting CapEx now and then from one type of product deployment to another. But overall continuing to see strong topline growth with hyperscalers in aggregate.

他們不時地將資本支出從一種類型的產品部署轉移到另一種類型的產品部署。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。

Matt Sheerin, Stifel.

馬特謝林，史蒂菲爾。

Yes, thank you. A couple of questions from me, please. One, Mandeep, just on the balance sheet, I saw that the inventory, gross inventory was down, and net inventory was down where your cash deposits were also down, yet you're growing significantly. So could you talk about the dynamics going on there and given the growth in the hyperscale business, are you seeing a shift in terms of consignment inventory that you're not passing through your counterparts?

是的，謝謝。請我問幾個問題。一，曼迪普，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。那麼，您能否談談那裡正在發生的動態，考慮到超大規模業務的成長，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. So, yes, strong working capital performance. 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 million. 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. But as you know, over five years of positive free cash flow every quarter.

謝謝你的提問，馬特。所以，是的，營運資金表現強勁。我們對產生的 6500 萬美元自由現金流感到滿意。很高興我們能夠將今年的自由現金流總量提高到 2.5 億美元。我們希望繼續監控我們的轉換是否健康，並且我們對現有的轉換率感到滿意，並且我們不再試圖節省。但如您所知，五年來每個季度都有正的自由現金流。

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 lease times come in. Lease times on semis as well as passives are now under 20 weeks, which is allowing us to do some of that unwind.

在幕後，正如您所言，我們看到庫存方面有所放鬆，因為我們預計庫存週轉率正在改善。這實際上是繼續與客戶合作並看到租賃時間到來的功能。半拖車和無源車的租賃時間現在不到 20 週，這讓我們可以放鬆一些。

The deposits were also unwinding again as expected because we were always working with our customers saying as long as lease times are really extended, how do we come into a model where they can help fund some of that?

押金也如預期再次減少，因為我們一直在與客戶合作，說只要租賃時間真正延長，我們如何進入一個模型，讓他們可以幫助提供部分資金？

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. And we don't think that the turns are necessarily going to take a step back. And then in terms of consigned, non-consigned, nothing really to note in terms of any differences.

由於他們現在進來了，我們很高興退還押金，並且仍然產生正的自由現金流。你關於庫存建設的觀點，從美元的角度來看，庫存可能會隨著我們一年的推移而增加，但我們非常關注週轉率。我們認為轉變並不一定會退後一步。然後就寄售和非寄售而言，沒有什麼真正需要注意的差異。

Okay. Thank you for that. And I wanted to ask a question on the competitive landscape. Obviously, you're gaining market share, particularly with the one hyperscale customer. There is some concern that we're seeing more competition from your North American EMS peers, but also obviously from the ODMs in Asia. Could you talk about your competitive edge and whether you expect your large customer to bring on other suppliers? And what does that do to your dynamic in that relationship?

好的。謝謝你。我想問一個關於競爭格局的問題。顯然，您正在獲得市場份額，尤其是針對一位超大規模客戶。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。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？這對你們在這段關係中的活力有什麼影響？

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

是的，馬特。看，EMS 生態系統中的二次採購並不是什麼新鮮事。通常發生的情況是，新專案從一開始就是單一來源，隨著時間的推移，隨著技術的成熟，第二來源通常會使其主要來源能夠推出下一代產品。

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

目前這在某些方面正在發揮作用。存在競爭動態，需要第二個來源來幫助我們的客戶。在其他情況下，我們是某些競爭對手的第二來源的受益者。所以這是雙向的。

Also, I would add that on HPS products, there's a little bit of a different dynamic at play. HPS products are typically single sourced for the life of the program, and that's given the stringent qualification process and also next-generation products typically have awarded to the incumbent assuming a strong initial performance because switching costs are also prohibitive.

另外，我想補充一點，在 HPS 產品上，存在著一些不同的動態。HPS 產品在專案的整個生命週期內通常是單一來源的，這是考慮到嚴格的資格流程，而且下一代產品通常會授予現有產品，假設初始性能強勁，因為轉換成本也令人望而卻步。

Again, within our AI/ML data center offerings, a lot of our high-value EMS programs are transitioning to HPS 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.

同樣，在我們的AI/ML 資料中心產品中，隨著時間的推移，我們的許多高價值EMS 專案正在過渡到HPS 產品，因為我們能夠為方程式帶來附加價值，我們認為這是相對於HPS 產品的競爭優勢。

Matt, maybe just to add on one point, which is, as we all know, the pie continues to get bigger. The CapEx spend across the top five hyperscalers who we all support is growing materially this year. 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. And so as the pie continues to get bigger, our revenue with the hyperscalers is also continuing to grow.

馬特，也許只是補充一點，那就是，眾所周知，蛋糕繼續變大。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。每個人都知道這一點。預計明年也將出現良好的成長水平。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。

When second sourcing is happening on less complex products, the positive way to look at that is it allows us to redeploy capacity to the more complex products, and the more complex products are what Rob just mentioned whether it be HBS or heavy engineering content. And so there has not been any dynamics on the competitive landscape. I would say that has surprised us. It's really playing out as expected.

當二次採購發生在不太複雜的產品上時，積極的看待方式是它允許我們將產能重新部署到更複雜的產品上，而更複雜的產品就是Rob 剛才提到的，無論是HBS 還是重型工程內容。因此，競爭格局沒有任何動態。我想說這讓我們感到驚訝。果然如預想的那樣上演了。

Okay, great. Just in line with that, are you still -- you've talked about being exclusive in terms of the AI/ML programs. Is that still the case with your big customer?

好的，太好了。與此一致的是，您還在談論在人工智慧/機器學習程式方面的排他性嗎？你們的大客戶還是這樣嗎？

No, 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. And those dynamics, as I mentioned earlier, might change over time [for a product like this] through the product life cycle.

不，我不會這麼說。我想說這是逐個項目的基礎，馬特。有些程序是排他性的，有些程序則不是。正如我之前提到的，這些動態可能會隨著時間的推移（對於這樣的產品）在產品生命週期中發生變化。

Got it. Okay. Thanks very much.

知道了。好的。非常感謝。

Yes, excellent.

是的，非常好。

Thanos Moschopoulos, BMO Capital Markets.

Thanos Moschopoulos，BMO 資本市場。

Hey, good morning. If we look at your CCS growth in the quarter outside of your largest customer, that growth rates is 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 the programs you're exposed to the hyperscalers? Any color you could provide would be helpful.

嘿，早安。如果我們看看您最大客戶以外的本季 CCS 成長情況，您會發現成長率相當低。這是否只是您優先考慮容量的方式的函數，而這可能與您接觸到的超大規模程式的一些艱難的逐年比較有關？您可以提供的任何顏色都會有幫助。

I'll start off and I'll let Mandeep finish it. But, it's not a function of our capacity. 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. 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 that is currently ahead of schedule.

我先開始，然後讓曼迪普完成。但是，這與我們的能力無關。我想說，我們的工廠確實有足夠的產能，而且我們也在向前發展、向前投資，以確保維持這種狀態。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. 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. Some are heavier this year, some might be heavier next year.

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。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。有些今年會更重，有些明年可能會更重。

And just to build on that, Than. So the growth that we saw in the first quarter that you're seeing in comms is being started off by our largest customer. 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. And so while the point you made is very valid, 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.

並以此為基礎，Than。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。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。因此，雖然您提出的觀點非常有效，但當您看到第一季時，當我們從全年角度來看時，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. With respect to margins, maybe it's too early to talk about 2025. But as we think about the fact that you've got this weakness in capital equipment and industrial, which may improve later in the year and into next year. And then you've got the growing HPS mix. Is there any reason for why we should not expect margins to be sustainable or to expand next year? Any offsetting constraints we should think about?

好的，這很有幫助。就利潤率而言，現在談論 2025 年可能還為時過早。但當我們考慮到資本設備和工業方面的弱點時，這一弱點可能會在今年稍後和明年得到改善。然後你就會得到不斷成長的 HPS 組合。我們有什麼理由不期望明年的利潤率能夠持續或擴大？我們應該考慮任何抵消限制嗎？

And yes, I'll start off and Rob can add on if needed. We're happy with the way that the margins are coming together. Clearly, 6.2% in the first quarter, highest in our history and the outlook now that we're providing is a 6.1% up year over year, and 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.

是的，我會開始，如果需要，羅布可以補充。我們對利潤的整合方式感到滿意。顯然，第一季的成長率為 6.2%，是我們歷史上最高的，現在我們提供的前景是同比增長 6.1%，一旦實現，將是公司歷史上的最高水平。從混合的角度來看，由於所涉及的複雜程度，超大規模企業的利潤會增加整個公司的利潤。

And so as we continue to grow hyperscaler revenues, we are looking to maintain CCS margins plus or minus a little bit. The opportunity, I think as you talk about for next year really goes to ATS. So our outlook for ATS 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. But as the demand comes back, we get leverage benefits. And as industrial, which is a strong margin business contributes more, both of those will help expand margins in ATS and so we think that we have some opportunities going into '25.

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。我認為，正如您所談論的明年的機會確實屬於 ATS。因此，我們目前對 ATS 的展望是全年低於 5%，第一季為 4.7%，但就您的觀點而言，需求回報和資本設備是有利可圖的。但隨著需求的回升，我們獲得了槓桿效益。隨著利潤率較高的工業業務貢獻更多，這兩者都將有助於擴大 ATS 的利潤率，因此我們認為進入 25 年我們有一些機會。

Alright. That's fine. Thank you.

好吧。沒關係。謝謝。

Thanks, Than.

謝謝，比。

Thanks.

謝謝。

Jesse Pytlak, Cormark Securities.

傑西·皮特拉克 (Jesse Pytlak)，Cormark 證券公司。

Hey, good morning. 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 it just the like you said the pipe getting bigger or is there some demand that's maybe being pulled forward?

嘿，早安。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 年增加的指導時，是否就像您所說的管道變大，或者是否有一些需求可能被提前？

Hi, Jesse. First of all, welcome to the call, and I'm really pleased to see Cormark in providing some coverage. To answer your question, the demand signals continue to be healthy across hyperscalers. To say that pull-ins are not happening 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. And some of that was fulfilling demand that dropped in as we went through the quarter.

嗨，傑西。首先，歡迎致電，我很高興看到 Cormark 提供一些報導。為了回答您的問題，超大規模企業的需求訊號仍然健康。說拉動沒有發生可能並不準確，因為正如你所看到的，我們在第二季度的指導率的上限或之上，或者對不起，在第一季。其中一些是滿足本季下降的需求。

As Robert talked about, because it's not 12-month rolling forecast, we don't have clear visibility to how that revenue that may have been out a few quarters is getting backfilled. But at the higher customer level, we're not seeing shifts in the demand patterns. 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, the demand signals continue to be positive for data center deployments going into 2025, but then to your point, we're already now ahead or pretty close to what our 2025 outlook was in April of 2024.

正如 Robert 所說，由於這不是 12 個月的滾動預測，因此我們無法清楚地了解可能已經消失了幾個季度的收入如何得到回補。但在更高的客戶級別，我們沒有看到需求模式改變。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，需求信號繼續對數據中心部署將持續到2025年，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. But right now, we're not feeling like it's feeling from 2025. The demand signals just seem to be that the overall tide is rising.

因此，我們將等待 6 個月，才能真正給出 2025 年更好的前景。但現在，我們並沒有感受到 2025 年的感覺。需求訊號似乎只是整體潮水正在上漲。

Okay, that's helpful. 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?

好的，這很有幫助。然後，您能否評論一下您在網路方面所看到的東西，這種情況超出了傳統雲端空間中的超大規模企業？

Yeah. Most of our networking business is actually going to the cloud providers in terms of 400G, 300G, 800G switches. On the OEM side, we are seeing continued softness as the industry burned through some excess inventory. We do see some of that recovering in the back half of the year.

是的。我們的網路業務實際上都是以 400G、300G、800G 交換器的形式流向雲端供應商。在原始設備製造商方面，隨著行業消耗掉一些過剩庫存，我們看到持續的疲軟狀態。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. 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, but there does continue to be a slowdown of the hyperscaler market.

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

Okay. I'll pass the line.

好的。我會過線。

Thanks, Justin.

謝謝，賈斯汀。

Thanks, Jesse.

謝謝，傑西。

Paul Treiber, RBC Capital Markets.

Paul Treiber，加拿大皇家銀行資本市場部。

Thanks, good morning. You've been very successful with your largest customer over the last couple of years or you going to have. What's your visibility and strategy that tries to replicate that degree of success with the other hyperscaler customers?

謝謝，早安。在過去幾年或未來幾年中，您在最大客戶方面取得了巨大成功。您嘗試向其他超大規模客戶複製這種成功程度的可見性和策略是什麼？

I would say we are actually replicating that success with other customers. I mean we have very strong positions with the majority of the big hyperscalers. We've won a number of new programs with those hyperscalers that are either in development or currently in ramping. So we're not we're not solely reliant on that one customer.

我想說，我們實際上正在與其他客戶複製這種成功。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。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。所以我們並不是只依賴那位客戶。

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. And those are driving some of the concentration numbers. Over time, those investment levels might come down, but other hyperscaler investment levels will increase. So our overall hyperscaler portfolio is actually very, very healthy.

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。正好我們現在的第一大客戶剛好是重投模式。這些正在推動一些集中度的數字。隨著時間的推移，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。因此，我們的整體超大規模產品組合實際上非常非常健康。

That's helpful to hear. The earlier comments on being comfortable with the customer concentration, is that, you know, we're not getting too specific outlook for what you see that customer concentration. Could you just give us a sense of why you're comfortable with it at 34% this past quarter?

聽到這很有幫助。先前關於對客戶集中度感到滿意的評論是，您知道，我們對於您所看到的客戶集中度並沒有得到太具體的前景。您能否告訴我們為什麼您對上個季度 34% 的比例感到滿意？

Yes, because it's not a single program. It's multiple growth programs across multiple technologies crossing a decade or even over a decade of past relationships. And with continued strong performance not just on high value EMS, but across engineering engagements as well. So it's a very sticky relationship, one backed by mutual respect and high performance. We never take these things for granted, but we're happy with the breadth of solutions that we're providing this customer.

是的，因為它不是一個單一的程序。這是跨越十年甚至十多年的過去關係的跨多種技術的多個增長計劃。不僅在高價值 EMS 領域，在工程業務領域也持續保持強勁表現。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。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. Can you speak to your capacity utilization and how it compares to what you've historically averaged? And then are you seeing additional opportunities with your customers for co-investments in capacity expansion?

最後，就等式的能力而言，我的意思是，你提到你確實有能力。您能談談您的產能利用率以及它與歷史平均值的比較嗎？那麼您是否看到了更多與客戶共同投資產能擴張的機會？

Yes. So capacity or utilization is extremely high in our Asia sites where the majority of our AI 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. And we carefully manage our capacity.

是的。因此，我們亞洲站點的容量或利用率非常高，我們的大部分人工智慧需求都是透過我們的業務高利用率站點來滿足的，而高槓桿率站點是非常有利可圖的站點，這就是您在我們的結果中看到的。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. We don't foresee any need for any additional co-investments at this time. 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。我們預計目前不需要任何額外的共同投資。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 have provided a revenue outlook going out to 2026. 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. So we don't need to greenfield a brand-new factory in a new country in order to keep up with that demand outlook.

Paul，補充一點，在 11 月的投資者日活動中，我們提供了截至 2026 年的收入展望。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。因此，我們不需要在新的國家新建一座工廠來滿足這種需求前景。

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，我們感到高興的事情之一是，我們相信我們能夠做到這一點，雖然資本支出可能會略有提高，但或多或​​少符合我們的歷史水平，同時仍然能夠增加收入。

Thanks for taking the questions.

感謝您提出問題。

Todd Coupland, CIBC.

托德·庫普蘭，CIBC。

Great. Thanks, and good morning, everyone. I wanted to ask specifically about compute. We're seeing that decelerate into Q2 and into the second half of the year. What factors are you looking for in terms of reaccelerating that line? Give us any indication on when you think that might happen? Thanks a lot.

偉大的。謝謝，大家早安。我想具體詢問有關計算的問題。我們看到這種情況在第二季和下半年有所放緩。在重新加速這條線路方面，您正在尋找哪些因素？請告訴我們您認為這種情況何時會發生？多謝。

Yes, I'll start. So compute in Q1 was up over 130% year over year. Compute in Q2 is up in the 70% range on a year-over-year basis. I would not call that at least in the first half of the year decelerating. As we go into the second half of the year, some of that is -- our outlook is driven by a little bit of murkiness as we exit the year.

是的，我會開始。因此，第一季的計算量年增超過 130%。第二季的計算量年增了 70%。至少在今年上半年我不會稱之為減速。當我們進入今年下半年時，其中一些因素是——當我們結束今年時，我們的前景受到一些模糊的影響。

But broadly speaking, compute volume and demand remains a material constraint. So again, demand exceeds supply. 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.

但從廣義上講，計算量和需求仍然是一個重大限制。再次，需求超過供給。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。

Yeah, and, Todd, I would maybe just add to that to say -- 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 AI type of networking, which is 400G switches but we are going to 800G switches as well.

是的，托德，我可能會補充一點——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，而且它將開始遷移到AI類型的網絡，即400G 交換機，但我們也將遷移到800G 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. 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, we think that we're going to come out more head because of that. Not to say that that compute is going away because the other dynamic that we have to keep in mind is that the comps are becoming quite high. But overall, we are seeing a healthy demand coming out of Q1 and going into Q2.

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。我們現在看到的更多的是向補償方面的轉變。由於通訊是我們產品組合的重要組成部分，我們認為我們將因此而變得更加聰明。並不是說這種計算正在消失，因為我們必須記住的另一個動態是計算變得相當高。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, within compute, you've had this debate on merchant silicon versus custom silicon and obviously the hyperscalers are all coming up with their own custom processors. That's yet to come. 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 that gap of understanding? Thanks a lot.

如果我能跟進這一點，在計算領域，您已經就商用晶片與定制晶片展開了辯論，顯然超大規模企業都在推出自己的定制處理器。那還沒到來。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？多謝。

So we are definitely heavily tilted towards custom silicon versus merchant silicon. We have been the benefactor of that switch. As you see from the announcements in the press, the hyperscalers are continuing to invest in custom silicon. 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. So that trend is continuing, and I think we're taking advantage of it.

因此，與商業晶片相比，我們絕對更傾向於定制晶片。我們是這次轉變的受益者。正如您從媒體公告中看到的那樣，超大規模企業正在繼續投資客製化晶片。隨著這些新的客製化晶片上市，我們相信我們將能夠獲得它們，並為我們的客戶提供這些類型的解決方案。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, Todd.

謝謝，托德。

Thank you so much. And there are no further questions at this time, presenters. I would now like to turn the call back to our speaker, Rob Mionis for closing remarks.

太感謝了。主持人，目前沒有其他問題。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. 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 800G and strong and growing markets.

謝謝。總的來說，我很高興我們又發布了一個穩定的季度業績，這種強勁的勢頭讓我們有信心提高 2024 年的前景。我也對我們持續強勁的執行力感到非常高興，並對我們強大的市場地位感到鼓舞，尤其是 800G 等一些新產品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. This concludes today's conference call. Thank you for your participation, and you may now disconnect. Have a good day.

謝謝各位主持人，也謝謝各位女士們、先生們。今天的電話會議到此結束。感謝您的參與，您現在可以斷開連接。祝你有美好的一天。