Celestica Inc (CLS) 2021 Q1 法說會逐字稿

Good day and thank you for standing by. Welcome to the Celestica Q1 2021 Earnings Conference Call. (Operator Instructions) And as a reminder, today's conference call is being recorded.

美好的一天，謝謝你的支持。歡迎來到 Celestica 2021 年第一季度收益電話會議。 （操作員說明）作為提醒，今天的電話會議正在錄製中。

I would now like to hand the conference over to your speaker today, Craig Oberg, Vice President of Investor Relations and Development. Please go ahead.

我現在想把會議交給今天的演講者，投資者關係和發展副總裁克雷格奧伯格。請繼續。

Good morning and thank you for joining us on Celestica's first quarter 2021 earnings conference call. On the call today are Rob Mionis, President and Chief Executive Officer; and Mandeep Chawla, Chief Financial Officer.

早上好，感謝您加入我們參加 Celestica 2021 年第一季度收益電話會議。今天接聽電話的是總裁兼首席執行官羅伯·米奧尼斯 (Rob Mionis)；首席財務官 Mandeep Chawla。

As a reminder, during this call, we will make forward-looking statements within the meanings of the U.S. Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws. Such forward-looking statements are based on management's current expectations, forecasts and assumptions, which are subject to risks, uncertainties and other factors that could cause actual outcomes and results to differ materially from conclusions, forecasts or projections expressed in such statements.

提醒一下，在本次電話會議期間，我們將根據 1995 年美國私人證券訴訟改革法案和適用的加拿大證券法做出前瞻性陳述。此類前瞻性陳述基於管理層當前的預期、預測和假設，這些預期、預測和假設受風險、不確定性和其他因素的影響，這些因素可能導致實際結果和結果與此類陳述中表達的結論、預測或預測存在重大差異。

For identification and discussion of such factors and assumptions as well as further information concerning forward-looking statements, please refer to yesterday's press release, including the cautionary note regarding forward-looking statements therein, our most recent annual report on Form 20-F and our other public filings, which can be accessed at sec.gov and sedar.com. We assume no obligation to update any forward-looking statement, except as required by law.

有關此類因素和假設的識別和討論以及有關前瞻性陳述的更多信息，請參閱昨天的新聞稿，包括其中有關前瞻性陳述的警示說明、我們關於 20-F 表格的最新年度報告和我們的其他公開文件，可在 sec.gov 和 sedar.com 上訪問。除非法律要求，否則我們不承擔更新任何前瞻性聲明的義務。

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

此外，在本次電話會議中，我們將參考各種非 IFRS 指標，包括營業收入、營業利潤率、調整後的毛利率、調整後的投資資本回報率或調整後的 ROIC、自由現金流、尾隨 12 的非 IFRS 債務總額-月調整後的 EBITDA 槓桿率、調整後的淨收益、調整後的每股收益、調整後的 SG&A 和調整後的有效稅率。

Listeners should be cautioned that references to any of the foregoing measures during this call denote non-IFRS measures, whether or not specifically designated as such. These non-IFRS measures do not have any standardized meanings prescribed by IFRS and may not be comparable to similar measures presented by other public companies that use IFRS or who report under U.S. GAAP and use non-GAAP measures to describe similar operating metrics.

應提醒聽眾，在本次電話會議中提及任何上述措施均表示非 IFRS 措施，無論是否明確指定為非 IFRS 措施。這些非 IFRS 措施沒有 IFRS 規定的任何標準化含義，可能無法與其他使用 IFRS 或根據美國 GAAP 報告並使用非 GAAP 措施描述類似運營指標的上市公司提出的類似措施相比較。

We refer you to today's press release and our Q1 2021 earnings presentation, which are available at celestica.com under the Investor Relations tab for more information about these and certain other non-IFRS measures, including a reconciliation of historical non-IFRS measures to the most directly comparable IFRS measures from our financial statements.

我們建議您參閱今天的新聞稿和我們的 2021 年第一季度收益報告，可在 celestica.com 的“投資者關係”選項卡下獲取，以了解有關這些和某些其他非 IFRS 措施的更多信息，包括歷史非 IFRS 措施與我們的財務報表中最直接可比的 IFRS 指標。

Unless otherwise specified, all references to dollars on this call are to U.S. dollars, and per share information is based on diluted shares outstanding.

除非另有說明，否則本次電話會議中所有提及的美元均為美元，每股信息均基於稀釋後的已發行股票。

Let me now turn the call over to Rob.

現在讓我把電話轉給 Rob。

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

謝謝你，克雷格。大家早上好，感謝您參加今天的電話會議。

Celestica is off to a strong start in 2021, delivering solid first quarter results. Revenue and adjusted EPS were both above the midpoint of our guidance ranges. And I am pleased that our non-IFRS operating margin is up 60 basis points on a year-over-year basis, reflecting the strength of our strategy and strong execution. Our portfolio transformation initiatives continue to yield results, and our core business is growing.

Celestica 在 2021 年開局強勁，第一季度業績穩健。收入和調整後的每股收益均高於我們指導範圍的中點。我很高興我們的非 IFRS 營業利潤率同比增長 60 個基點，反映了我們戰略的實力和強大的執行力。我們的投資組合轉型計劃繼續取得成果，我們的核心業務也在增長。

Although revenue decreased 6% in Q1 2021 compared to Q1 2020, the decrease was largely driven by a disengagement from Cisco, whose revenue accounted for 13% of our total Q1 2020 revenue. The revenue of the company's non-Cisco business grew 7% year-over-year. Furthermore, we executed the transition seamlessly, and we were able to meet our revenue and mix backfall objectives.

儘管 2021 年第一季度的收入與 2020 年第一季度相比下降了 6%，但下降的主要原因是與思科的脫離，思科的收入占我們 2020 年第一季度總收入的 13%。公司非思科業務收入同比增長7%。此外，我們無縫地執行了過渡，並且能夠實現我們的收入和組合回退目標。

Within our ATS segment, we experienced slightly better-than-expected revenue results due to strong growth in HealthTech and Capital Equipment. We also reported our fourth consecutive quarter of sequential margin expansion and continue to target being back in our 5% to 6% target margin range by the end of the year.

在我們的 ATS 部門，由於 HealthTech 和 Capital Equipment 的強勁增長，我們的收入結果略好於預期。我們還報告了我們連續第四個季度實現連續利潤率擴張，並繼續致力於在年底前回到我們 5% 至 6% 的目標利潤率範圍。

Within CCS, after having successfully concluded our Cisco disengagement in the fourth quarter of 2020, we are focused on growth. While CCS revenue in the first quarter was down on a year-over-year basis primarily because of the Cisco disengagement, our remaining CCS portfolio grew by 16% year-over-year. The CCS segment continues to perform well with our year-over-year improvement in segment margin for the fifth consecutive quarter and once again operating above our 2% to 3% target range.

在 CCS 內部，在 2020 年第四季度成功結束與思科的脫離後，我們專注於增長。雖然第一季度的 CCS 收入同比下降主要是因為思科脫離，但我們剩餘的 CCS 產品組合同比增長了 16%。 CCS 部門繼續表現良好，我們的部門利潤率連續第五個季度同比提高，並再次超過我們 2% 至 3% 的目標範圍。

Our Hardware Platform Solutions, or HPS, business, previously referred to as our GDN business, remains an engine for growth within our CCS segment.

我們的硬件平台解決方案或 HPS 業務，以前稱為我們的 GDN 業務，仍然是我們 CCS 部門的增長引擎。

HPS generated $200 million of revenue in the first quarter, a 46% increase on a year-to-year basis. We continue to expect our HPS business to be a catalyst for both CCS revenue growth and segment margin strength.

HPS 在第一季度創造了 2 億美元的收入，同比增長 46%。我們繼續預計我們的 HPS 業務將成為 CCS 收入增長和分部利潤率增長的催化劑。

Last quarter, we also highlighted that we refer to revenue from our HPS business and ATS segment as Lifecycle Solutions. It is our view that the businesses which compromise our Lifecycle Solutions portfolio share several key characteristics that reflect the focus of our commercial strategy. We consider our Lifecycle Solutions revenue to be diversified revenue. And our strategy continues to be to expand this portfolio as a percent of the total company, enabling long-term profitable growth.

上個季度，我們還強調我們將 HPS 業務和 ATS 部門的收入稱為生命週期解決方案。我們認為，影響我們生命週期解決方案組合的業務具有幾個反映我們商業戰略重點的關鍵特徵。我們認為我們的生命週期解決方案收入是多元化收入。我們的戰略繼續是擴大這一投資組合占公司總數的百分比，從而實現長期盈利增長。

This strategy includes pursuing markets with high barriers to entry, robust long-term growth prospects, attractive margins and the opportunity to offer our customers higher value-added solutions throughout the product life cycle. We are pleased that our Lifecycle Solutions portfolio grew in the first quarter both sequentially and on a year-over-year basis.

該戰略包括追求具有高進入壁壘、強勁的長期增長前景、誘人的利潤率以及在整個產品生命週期中為我們的客戶提供更高附加值解決方案的機會的市場。我們很高興我們的生命週期解決方案產品組合在第一季度實現了環比和同比增長。

I will offer some further color on our end markets and the overall business outlook shortly. However, first, I would like to turn the call over to Mandeep to provide you with some financial details on the first quarter as well as our second quarter guidance.

我將在短期內進一步介紹我們的終端市場和整體業務前景。但是，首先，我想將電話轉給 Mandeep，向您提供有關第一季度的一些財務細節以及我們第二季度的指導。

Thank you, Rob, and good morning, everyone.

謝謝羅布，大家早上好。

First quarter 2021 revenue came in at $1.23 billion, slightly above the midpoint of our guidance range. Revenue decreased 6% year-over-year and 11% sequentially. Despite Q1 traditionally being a seasonally soft quarter from a volume perspective, we delivered non-IFRS operating margin of 3.5%, exceeding the midpoint of our guidance range by 10 basis points, reflecting the benefits of our portfolio reshaping activities and improved mix across several businesses.

2021 年第一季度的收入為 12.3 億美元，略高於我們指導範圍的中點。收入同比下降 6%，環比下降 11%。儘管從銷量的角度來看，第一季度傳統上是一個季節性疲軟的季度，但我們實現了 3.5% 的非 IFRS 營業利潤率，超出我們指導範圍的中點 10 個基點，反映了我們的投資組合重塑活動和改善多項業務組合的好處.

Year-over-year, non-IFRS operating margin improved by 60 basis points driven by a significant improvement in our ATS end market. Sequentially, non-IFRS operating margin declined by 10 basis points driven by lower volumes in CCS. This was partially offset by higher sequential ATS segment margin driven by higher volumes and favorable mix.

在我們的 ATS 終端市場顯著改善的推動下，非 IFRS 營業利潤率同比提高了 60 個基點。由於 CCS 銷量下降，非 IFRS 營業利潤率連續下降 10 個基點。這部分被更高的 ATS 細分市場利潤率所抵消，這是由更高的銷量和有利的組合推動的。

Non-IFRS adjusted earnings per share were $0.22, $0.01 above our guidance midpoint and an improvement of $0.06 year-over-year while down $0.04 sequentially.

非 IFRS 調整後每股收益為 0.22 美元，比我們的指導中點高出 0.01 美元，同比增長 0.06 美元，環比下降 0.04 美元。

First quarter IFRS earnings per share were $0.08, up $0.10 year-over-year and down $0.08 sequentially.

第一季度 IFRS 每股收益為 0.08 美元，同比增長 0.10 美元，環比下降 0.08 美元。

Our ATS segment accounted for 43% of our consolidated revenue during the quarter, our highest level of ATS concentration reported to date and up from 41% in the first quarter of last year. ATS revenue was down 3% compared to last year, ahead of our expectations of a mid- single-digit percentage year-over-year decline. Sequentially, ATS revenue was up 4%.

我們的 ATS 部門在本季度占我們綜合收入的 43%，這是迄今為止我們報告的最高水平的 ATS 集中度，高於去年第一季度的 41%。與去年相比，ATS 收入下降了 3%，超出了我們對中個位數百分比同比下降的預期。隨後，ATS 收入增長了 4%。

The year-over-year revenue decline in ATS was driven by weakness in commercial aerospace and industrial, partially due to COVID-19, largely offset by new program ramps in HealthTech and very strong demand growth in Capital Equipment. Sequential growth was driven by strength in Capital Equipment and HealthTech, offsetting moderate headwinds in A&D and industrial.

ATS 的收入同比下降是由商業航空航天和工業的疲軟推動的，部分原因是 COVID-19，這在很大程度上被 HealthTech 的新項目增長和資本設備的強勁需求增長所抵消。環比增長受到資本設備和健康科技實力的推動，抵消了 A&D 和工業領域的適度逆風。

Our CCS segment revenue was down 9% year-over-year largely driven by the Cisco disengagement and partly offset by strong demand from service provider customers, including in our HPS business. Sequentially, CCS revenue was down 19% driven by seasonality in our Enterprise business as well as the Cisco disengagement. With the Cisco disengagement behind us, we are pleased with the growth in the remainder of our core CCS portfolio, whose revenue increased 16% year-over-year.

我們的 CCS 部門收入同比下降 9%，這主要是受思科脫離的推動，部分被服務提供商客戶（包括我們的 HPS 業務）的強勁需求所抵消。因此，由於我們企業業務的季節性變化以及與思科的脫離，CCS 收入下降了 19%。隨著思科脫離我們，我們對我們核心 CCS 產品組合的其餘部分的增長感到滿意，其收入同比增長 16%。

Within our CCS segment, the communications end market represented 40% of our consolidated first quarter revenue, up from 39% in the first quarter of last year. Communications revenue in the quarter was down 2% year-over-year as the declines resulting from the Cisco disengagement were largely offset by robust demand from service provider customers. Sequentially, communications revenue was down 16%, mainly driven by seasonality as well as the Cisco disengagement.

在我們的 CCS 部門中，通信終端市場占我們第一季度合併收入的 40%，高於去年第一季度的 39%。本季度的通信收入同比下降 2%，原因是思科脫離業務導致的下降在很大程度上被服務提供商客戶的強勁需求所抵消。隨後，通信收入下降了 16%，主要受季節性因素和思科脫離的影響。

Our Enterprise end market represented 17% of consolidated revenue in the first quarter, down from 20% in the same period last year. Enterprise revenue in the quarter was down 21% year-over-year and down 27% sequentially. The year-over-year and sequential declines were driven by program-specific demand softness and seasonality.

我們的企業終端市場佔第一季度綜合收入的 17%，低於去年同期的 20%。本季度企業收入同比下降 21%，環比下降 27%。同比和環比下降是由特定項目的需求疲軟和季節性推動的。

Our HPS business once again delivered strong growth in the first quarter with revenue up 46% year-over-year, led by higher demand from service provider customers. HPS accounted for 16% of our consolidated revenue, up from 10% a year ago and 15% in Q4 2020.

我們的 HPS 業務在第一季度再次實現強勁增長，收入同比增長 46%，這得益於服務提供商客戶更高的需求。 HPS 占我們綜合收入的 16%，高於一年前的 10% 和 2020 年第四季度的 15%。

Our top 10 customers represented 65% of revenue during the first quarter, down 1% year-over-year and 2% sequentially. For the first quarter, no customer represented 10% or more of our total revenue versus 1 customer in the first quarter of 2020 and 2 in the prior quarter.

我們的前 10 大客戶佔第一季度收入的 65%，同比下降 1%，環比下降 2%。對於第一季度，沒有客戶占我們總收入的 10% 或更多，而 2020 年第一季度為 1 個客戶，上一季度為 2 個。

Turning to segment margins. Achieving a margin of 4.0%, the ATS segment achieved its fourth consecutive quarter of sequential margin expansion, up 130 basis points year-over-year and up 10 basis points sequentially. The year-over-year improvements were driven by accretive new programs in HealthTech and Capital Equipment, more than offsetting headwinds in our A&D business.

轉向部門利潤率。 ATS 業務實現了 4.0% 的利潤率，連續第四個季度實現連續利潤率擴張，同比增長 130 個基點，環比增長 10 個基點。同比改善是由 HealthTech 和 Capital Equipment 的增值新計劃推動的，這不僅僅是抵消了我們 A&D 業務的逆風。

CCS segment margins of 3.1% came above our target range of 2% to 3%, up 10 basis points year-over-year and down 30 basis points sequentially. Year-over-year margin improvement was primarily driven by favorable mix. The sequential margin decline was due to lower volumes due to seasonal demand dynamics, partly offset by favorable mix.

CCS 部門利潤率為 3.1%，高於我們 2% 至 3% 的目標範圍，同比上升 10 個基點，環比下降 30 個基點。利潤率的同比增長主要是由有利的組合推動的。利潤率連續下降是由於季節性需求動態導致銷量下降，部分被有利的組合所抵消。

Moving to additional financial metrics. IFRS net earnings for the quarter were $10.5 million or $0.08 per share compared to a net loss of $3.2 million or a $0.02 loss per share in the same quarter of last year and net earnings of $20.1 million or $0.16 per share in the previous quarter.

轉向其他財務指標。本季度 IFRS 淨收益為 1050 萬美元或每股 0.08 美元，而去年同期為淨虧損 320 萬美元或每股虧損 0.02 美元，上一季度淨收益為 2010 萬美元或每股 0.16 美元。

Adjusted gross margin of 8.6% was up 130 basis points compared to the same period last year and up 20 basis points sequentially both on a lower base of volume. Year-over-year and sequential improvements were largely driven by a higher percentage of Lifecycle Solutions portfolio revenue, which is made up of our HPS and ATS businesses, which generate more favorable margins than our non-HPS CCS revenues.

調整後的毛利率為 8.6%，與去年同期相比上升 130 個基點，環比上升 20 個基點，均基於較低的銷量基數。同比和連續改善主要是由生命週期解決方案組合收入的更高百分比推動的，該組合收入由我們的 HPS 和 ATS 業務組成，與我們的非 HPS CCS 收入相比，它們產生的利潤率更高。

First quarter adjusted SG&A of $53.6 million was up $3.7 million versus a year ago primarily due to higher functional spend and unfavorable foreign exchange impacts. Adjusted SG&A was down $2.9 million sequentially.

第一季度調整後的 SG&A 為 5360 萬美元，比一年前增加 370 萬美元，這主要是由於較高的職能支出和不利的外匯影響。調整後的 SG&A 環比下降 290 萬美元。

Non-IFRS operating earnings were $43.3 million, up $5.2 million from the same quarter last year and down $6.7 million sequentially. Our non-IFRS adjusted effective tax rate for the first quarter was 21% compared to 24% for the prior year period and 19% last quarter. For the first quarter, adjusted net earnings were $27.8 million compared to $20.7 million for the prior year period and $33.3 million last quarter.

非 IFRS 營業利潤為 4330 萬美元，比去年同期增加 520 萬美元，比上一季度減少 670 萬美元。我們第一季度的非國際財務報告準則調整後有效稅率為 21%，而去年同期為 24%，上一季度為 19%。第一季度，調整後淨收益為 2780 萬美元，上年同期為 2070 萬美元，上季度為 3330 萬美元。

Non-IFRS adjusted earnings per share of $0.22 were $0.01 above our guidance midpoint and up $0.06 year-over-year due to higher non-IFRS operating earnings and lower interest expense. Sequentially, non-IFRS adjusted earnings per share were down $0.04, mainly due to lower sequential non-IFRS operating earnings. First quarter non-IFRS adjusted ROIC of 10.8% was up 1.3% compared to the same quarter of last year and down 1.6% sequentially.

非 IFRS 調整後每股收益為 0.22 美元，比我們的指導中點高出 0.01 美元，同比增長 0.06 美元，原因是非 IFRS 營業收入增加和利息支出減少。非 IFRS 調整後每股收益環比下降 0.04 美元，這主要是由於非 IFRS 環比營業收益下降。第一季度非 IFRS 調整後的 ROIC 為 10.8%，比去年同期增長 1.3%，環比下降 1.6%。

Moving on to working capital. Our inventory at the end of the quarter was $1.15 billion, up $62 million sequentially and up $81 million compared to the prior year period, largely to support growth in our HPS business. Inventory turns were 4.0 in the first quarter, down from 4.4 turns last quarter and from 4.8 turns in the prior year period.

轉向營運資金。本季度末我們的庫存為 11.5 億美元，環比增加 6200 萬美元，比去年同期增加 8100 萬美元，這主要是為了支持我們 HPS 業務的增長。第一季度庫存周轉率為 4.0，低於上一季度的 4.4 和去年同期的 4.8。

Capital expenditures for the first quarter were $13 million or approximately 1% of revenue.

第一季度的資本支出為 1300 萬美元，約佔收入的 1%。

Non-IFRS free cash flow was $20.9 million in the first quarter compared to $53.8 million for the same period last year and up from $18.5 million in the prior quarter. We are pleased to have delivered positive non-IFRS free cash flow for 9 straight quarters.

第一季度非 IFRS 自由現金流為 2090 萬美元，去年同期為 5380 萬美元，高於上一季度的 1850 萬美元。我們很高興連續 9 個季度實現了正的非 IFRS 自由現金流。

Cash cycle days in the first quarter were 82 days, up 13 days year-over-year and up 9 days sequentially. Our cash cycle days are higher than normal, partially due to the lower level of revenue we experienced in the first quarter. Our expectations are for cash cycle days to improve as we continue through 2021.

第一季度現金周轉天數為 82 天，同比增加 13 天，環比增加 9 天。我們的現金周期天數高於正常水平，部分原因是我們在第一季度的收入水平較低。我們預計，隨著我們持續到 2021 年，現金周期天數會有所改善。

In the first quarter, we incurred $6 million of restructuring charges to further adjust our cost base to align with changing demand levels, primarily in our A&D business.

第一季度，我們產生了 600 萬美元的重組費用，以進一步調整我們的成本基礎以適應不斷變化的需求水平，主要是我們的 A&D 業務。

Moving on to some additional key metrics. Our cash balance at the end of the first quarter was $449 million, down $23 million year-over-year and down $14 million sequentially. Combined with our $450 million revolver, which remains undrawn, we continue to have a very strong liquidity position of approximately $900 million in available funds. We believe our liquidity is sufficient to meet our current business needs.

繼續討論一些其他關鍵指標。我們在第一季度末的現金餘額為 4.49 億美元，同比下降 2300 萬美元，環比下降 1400 萬美元。加上我們仍未動用的 4.5 億美元左輪手槍，我們繼續擁有非常強大的流動性頭寸，可用資金約為 9 億美元。我們相信我們的流動性足以滿足我們當前的業務需求。

During the quarter, we repaid $30 million of our long-term debt and ended the quarter with gross debt of $440 million, achieving net cash of $9 million. This marks the first time we have achieved a positive net cash position since the third quarter of 2018. Our first quarter gross debt to non-IFRS trailing 12-month adjusted EBITDA leverage ratio was 1.4 turns, an improvement of 0.2 turns sequentially and an improvement of 0.6 turns from the same quarter last year.

本季度，我們償還了 3000 萬美元的長期債務，本季度末總債務為 4.4 億美元，淨現金為 900 萬美元。這標誌著我們自 2018 年第三季度以來首次實現正淨現金頭寸。我們第一季度的總債務與非國際財務報告準則的跟踪 12 個月調整後 EBITDA 槓桿比率為 1.4 倍，環比改善 0.2 倍，改善比去年同季度增長 0.6 倍。

We are pleased with the progress we have made to deleverage our balance sheet, which we have achieved as a result of strong non-IFRS free cash flow generation and disciplined capital management. At the end of 2021, we were compliant with all financial covenants under our credit agreement.

我們對我們在資產負債表去槓桿化方面取得的進展感到高興，這是由於強大的非 IFRS 自由現金流產生和嚴格的資本管理而取得的。到 2021 年底，我們遵守了信貸協議下的所有財務契約。

Since announcing our NCIB program last November, we have repurchased approximately 0.6 million shares at a cost of $5.3 million or an average price of $8.35 per share. As we proceed through 2021, we will continue to take a balanced approach towards capital allocation. We are focused on generating $100 million or more of free cash flow and utilizing this cash to primarily pay down debt to reduce our interest expense and maintain maximum financial flexibility. We will, however, also be opportunistic towards share buybacks under our existing NCIB program.

自去年 11 月宣布我們的 NCIB 計劃以來，我們已以 530 萬美元或平均每股 8.35 美元的價格回購了約 60 萬股股票。隨著我們進入 2021 年，我們將繼續對資本配置採取平衡的方法。我們專注於產生 1 億美元或更多的自由現金流，並利用這些現金主要償還債務，以減少我們的利息支出並保持最大的財務靈活性。然而，我們也會根據現有的 NCIB 計劃對股票回購採取機會主義態度。

Our long-term capital allocation priorities remain unchanged. We are focused on generating consistent non-IFRS free cash flow, achieving our annual targets and returning 50% of that capital to shareholders with the other 50% to being reinvested in our business.

我們的長期資本配置重點保持不變。我們專注於產生一致的非 IFRS 自由現金流，實現我們的年度目標，並將 50% 的資本返還給股東，另外 50% 用於再投資於我們的業務。

Now turning to our guidance for the second quarter of 2021. We are projecting second quarter revenue to be in the range of $1.325 billion to $1.425 billion. At the midpoint of this range, revenue would be up 11% sequentially and down 8% year-over-year, including the impact of our disengagement from Cisco. For our non-Cisco portfolio, achievement of the midpoint of our guidance range would represent revenue growth of 3% year-over-year.

現在轉向我們對 2021 年第二季度的指導。我們預計第二季度的收入將在 13.25 億美元至 14.25 億美元之間。在此範圍的中點，收入將連續增長 11%，同比下降 8%，其中包括我們脫離思科的影響。對於我們的非思科產品組合，實現我們指導範圍的中點將代表收入同比增長 3%。

Second quarter non-IFRS adjusted earnings per share are expected to range between $0.21 to $0.27 per share. At the midpoint of our revenue and adjusted EPS guidance ranges, non-IFRS operating margin would be approximately 3.5%, an increase of 10 basis points over the same period last year and flat sequentially.

第二季度非 IFRS 調整後每股收益預計在 0.21 美元至 0.27 美元之間。根據我們收入和調整後每股收益指導範圍的中點，非國際財務報告準則營業利潤率約為 3.5%，比去年同期增長 10 個基點，環比持平。

Non-IFRS adjusted SG&A expense for the second quarter is expected to be in the range of $54 million to $56 million. We anticipate our non-IFRS adjusted effective tax rate to be approximately 21%, excluding any impacts from taxable foreign exchange or unanticipated tax settlements.

第二季度非 IFRS 調整後的 SG&A 費用預計在 5400 萬至 5600 萬美元之間。我們預計我們的非 IFRS 調整後有效稅率約為 21%，不包括應稅外匯或意外稅收結算的任何影響。

Turning to our end market outlook for the second quarter of 2021. In our ATS end market, we anticipate revenue to be up in the mid-teen percentage range year-over-year driven by continued demand strength in our Capital Equipment and HealthTech businesses and a return to growth in industrial, partly offset by continuing weakness in commercial aerospace as a result of COVID-19.

轉向我們對 2021 年第二季度的終端市場展望。在我們的 ATS 終端市場，我們預計在我們的資本設備和 HealthTech 業務的持續需求強勁的推動下，收入將同比增長 15% 左右。工業恢復增長，部分被 COVID-19 導致的商業航空航天業持續疲軟所抵消。

In CCS, we anticipate our communications end market revenue to be down in the low double-digit percentage range year-over-year driven by our disengagement from Cisco. The remainder of our communications portfolio is growing driven by strength in demand from our service provider customers as well as our HPS business.

在 CCS 中，我們預計我們的通信終端市場收入將同比下降兩位數的百分比範圍，原因是我們脫離了思科。我們的通信產品組合的其餘部分在我們的服務提供商客戶以及我們的 HPS 業務的需求強勁的推動下不斷增長。

In our Enterprise end market, we anticipate revenue to decrease in the low 30s percent range year-over-year due to market demand softness and very strong performance in the same quarter last year.

在我們的企業終端市場，由於市場需求疲軟和去年同期的強勁表現，我們預計收入將同比下降 30% 左右。

I'll now turn the call back over to Rob for additional color on our end markets and overall business outlook.

我現在將電話轉回給 Rob，以了解我們的終端市場和整體業務前景的更多信息。

Thank you, Mandeep.

謝謝你，曼迪普。

We are pleased with our company's continuing execution of our strategy, which reflects our team's work ethic and ability to navigate the unique challenges presented by the current business environment. We are off to a strong start with our first quarter results, which we believe position us for a successful 2021. We continue to navigate several challenges in the context of the current macro environment. The pipe constraints continue to impact most of our end markets, resulting in extended lead times for components.

我們對公司持續執行我們的戰略感到滿意，這反映了我們團隊的職業道德和應對當前商業環境帶來的獨特挑戰的能力。我們以第一季度業績開局良好，我們相信這將使我們在 2021 年取得成功。在當前的宏觀環境下，我們將繼續應對多項挑戰。管道限制繼續影響我們的大部分終端市場，導致組件的交貨時間延長。

In the first quarter, due to our advanced planning and proactive approach to securing necessary components and materials, we were able to limit the impact on our revenues to $12 million. While we have accounted for our best estimate of the potential impacts of component shortages in our second quarter outlook, we are seeing further tightening of supply chains and market conditions are becoming more challenging. We continue to monitor the situation and are working closely with our suppliers and customers to mitigate the impact on our business. We expect these conditions will persist for the remainder of 2021.

在第一季度，由於我們提前規劃並採取積極主動的方法來確保必要的組件和材料，我們能夠將對收入的影響限制在 1200 萬美元以內。雖然我們在第二季度展望中對組件短缺的潛在影響做出了最佳估計，但我們看到供應鏈進一步收緊，市場條件變得更具挑戰性。我們將繼續監控情況，並與我們的供應商和客戶密切合作，以減輕對我們業務的影響。我們預計這些情況將持續到 2021 年剩餘時間。

Despite the challenges from COVID-19, we continue to operate at normal capacity levels across our network. We are seeing the number of COVID-19 cases rise again in certain regions while in many parts of the globe in the midst of a third wave. While some jurisdictions, such as Canada and Western Europe, are responding with additional restrictions, other jurisdictions are easing their restrictions.

儘管面臨 COVID-19 的挑戰，我們仍繼續在整個網絡中以正常容量水平運營。我們看到某些地區的 COVID-19 病例數再次上升，而全球許多地區正處於第三波浪潮之中。雖然加拿大和西歐等一些司法管轄區正在採取額外的限制措施，但其他司法管轄區正在放寬限制。

Our global operations team continues to work diligently to implement the required health and safety protocols, and the health and well-being of our employees and business partners remains our highest priority as we navigate through these dynamic times.

我們的全球運營團隊繼續努力工作，以實施所需的健康和安全規程，在我們度過這些充滿活力的時代時，我們員工和業務合作夥伴的健康和福祉仍然是我們的首要任務。

Now turning to our segments. In ATS, we are very encouraged by the resiliency of our diversified businesses, and we reiterate that we are targeting 10% revenue growth in 2021 compared to 2020. We also remain focused on reentering our target segment margin range of 5% to 6% by the end of the year despite the continued weakness in commercial aerospace.

現在轉向我們的細分市場。在 ATS 方面，我們對多元化業務的彈性感到非常鼓舞，我們重申我們的目標是 2021 年的收入比 2020 年增長 10%。我們還繼續專注於重新進入 5% 至 6% 的目標細分市場利潤率範圍儘管商業航空業持續疲軟，但今年年底。

Our Capital Equipment business continues to exhibit very strong growth, primarily led by new wins and market share gains from our semi-cap customers. The demand backdrop in the semiconductor space remains quite strong, supported by secular tailwinds. We expect our Capital Equipment business to remain robust in the second quarter and for the remainder of 2021.

我們的資本設備業務繼續呈現非常強勁的增長，這主要得益於我們的半盤客戶的新勝利和市場份額增長。在長期順風的支持下，半導體領域的需求背景仍然相當強勁。我們預計我們的資本設備業務將在第二季度和 2021 年剩餘時間內保持強勁。

In our display business, as noted in our comments last quarter, we continue to anticipate growth towards the end of the year and into 2022.

正如我們在上個季度的評論中指出的那樣，在我們的顯示器業務中，我們繼續預計到今年年底和 2022 年會實現增長。

In industrial, demand has largely stabilized on a sequential basis. With the worst of the impact of COVID-19 on our industrial business now behind us, we expect to return to year-over-year revenue growth in the second quarter.

在工業領域，需求已基本環比穩定。由於 COVID-19 對我們工業業務的最嚴重影響現已過去，我們預計第二季度收入將恢復同比增長。

In A&D, headwinds in the commercial aerospace market continue to pressure our results as operators have meaningfully pared back expenditures in the face of lower levels of commercial air traffic. We have taken the actions we believe to be necessary to adjust our cost structure to align with this lower level of demand. Looking ahead, while we expect the commercial aerospace market to remain depressed throughout 2021, we are anticipating higher revenue in the second half of the year compared to the first half as new program wins ramp.

在 A&D 方面，商業航空市場的逆風繼續給我們的業績帶來壓力，因為運營商在面對商業空中交通水平較低的情況下大幅削減了支出。我們已採取我們認為必要的行動來調整我們的成本結構，以適應這種較低水平的需求。展望未來，雖然我們預計商業航空市場在整個 2021 年都將保持低迷，但隨著新項目的成功實施，我們預計下半年的收入將高於上半年。

In our HealthTech business, we continue to see strong growth, both year-to-year and sequentially, supported by the ramping of a number of new program wins. We anticipate this strength to continue throughout 2021.

在我們的 HealthTech 業務中，我們繼續看到同比和環比的強勁增長，這得益於許多新項目勝利的增加。我們預計這種優勢將持續到 2021 年。

Now turning to CCS. Having successfully completed the Cisco disengagement in Q4 of 2020, we continue to see the benefits of our portfolio reshaping initiatives, which have resulted in improved mix and higher year-over-year non-IFRS operating margin despite operating on a lower base of revenue. Our CCS segment margin once again surpassed our target range of 2% to 3%, and we expect full year margins to be at the high end of the range or slightly higher.

現在轉向CCS。在 2020 年第四季度成功完成與思科的脫離後，我們繼續看到我們的投資組合重塑計劃帶來的好處，儘管在較低的收入基礎上運營，但這些舉措改善了產品組合，並實現了同比更高的非 IFRS 營業利潤率。我們的 CCS 部門利潤率再次超過我們 2% 至 3% 的目標範圍，我們預計全年利潤率將處於該範圍的高端或略高。

As noted, while revenues are lower on a year-to-year basis as a result of the Cisco disengagement, our non-Cisco CCS business grew 16% in the first quarter compared to the prior period. We anticipate further growth for our non-Cisco CCS portfolio in '21 compared to 2020.

如前所述，雖然與思科脫離接觸導致收入同比下降，但我們的非思科 CCS 業務在第一季度與上一季度相比增長了 16%。與 2020 年相比，我們預計 21 年我們的非思科 CCS 產品組合將進一步增長。

Our Hardware Platform Solutions business demonstrated another excellent quarter with year-to-year growth of 46% in the first quarter on the back of strong demand from service providers in our communications end market. This growth helps to offset some of the impact from our Cisco disengagement. HPS represented 16% of our total business in the first quarter, up from 15% last quarter and 10% a year ago. Based on the orders we have received from our customers to date, we currently expect HPS to grow in the double-digit percentage range in 2021, higher than the high single-digit percentage growth range we indicated in January.

由於通信終端市場服務提供商的強勁需求，我們的硬件平台解決方案業務在第一季度表現出另一個出色的季度，同比增長 46%。這種增長有助於抵消我們脫離思科的部分影響。 HPS 在第一季度占我們總業務的 16%，高於上一季度的 15% 和一年前的 10%。根據我們迄今為止從客戶那裡收到的訂單，我們目前預計 HPS 將在 2021 年以兩位數的百分比增長，高於我們在 1 月份表示的高個位數百分比增長范圍。

In the communications end market, we expect demand to remain robust in our core portfolio of business in 2021, supported by the recent strength in demand from service providers. On a year-to-year basis, however, revenue growth will be pressured by the Cisco disengagement.

在通信終端市場，我們預計 2021 年我們核心業務組合的需求將保持強勁，這得益於近期服務提供商的需求強勁。然而，按年計算，收入增長將受到思科脫離的壓力。

In our Enterprise end market, demand has been relatively soft in recent quarters, and we expect these conditions to persist for the near to medium term.

在我們的企業終端市場，最近幾個季度的需求相對疲軟，我們預計這些情況將在中短期內持續存在。

As previously discussed, our HPS revenue and ATS segment revenue together represent what we call Lifecycle Solutions. In the first quarter, our Lifecycle Solutions portfolio grew 7% year-to-year and grew 1% sequentially. In Q1 2021, our Lifecycle Solutions revenue accounted for 59% of total revenues, up from 52% in Q4 of 2020. We continue to expect Lifecycle Solutions to account for a growing portion of our total consolidated revenues and act as a driver of non-IFRS operating margin improvement. Currently, we also expect our Lifecycle Solutions portfolio to grow in the double-digit percentage range in 2021 compared to a high single-digit percentage range outlook in January.

如前所述，我們的 HPS 收入和 ATS 部門收入共同代表了我們所說的生命週期解決方案。第一季度，我們的生命週期解決方案產品組合同比增長 7%，環比增長 1%。 2021 年第一季度，我們的生命週期解決方案收入佔總收入的 59%，高於 2020 年第四季度的 52%。我們繼續預計生命週期解決方案占我們總收入的比例會越來越大，並成為非IFRS 營業利潤率改善。目前，我們還預計我們的生命週期解決方案產品組合將在 2021 年以兩位數的百分比範圍增長，而 1 月份的展望為高個位數百分比範圍。

With 2021 off to a strong start, we remain as focused as ever on executing our strategy, which is diversifying our end markets, delivering higher value solutions to our customers, expanding our Lifecycle Solutions capabilities and flawlessly performing for our customers. We believe this strategy will lead to sustainable revenue growth and expanding operating margins over the long term.

2021 年開局良好，我們一如既往地專注於執行我們的戰略，即使我們的終端市場多樣化，為我們的客戶提供更高價值的解決方案，擴展我們的生命週期解決方案能力，並為我們的客戶提供完美的服務。我們相信，這一戰略將帶來可持續的收入增長，並在長期內擴大營業利潤率。

I would like to thank our employees for their incredible efforts and dedication to the company. Our global team's commitment, resiliency and adaptability during these challenging times is commendable. Our people are the key driver to our success, and their performance instills on us great confidence that we will continue to deliver strong results and execute on our plan for the remainder of the year and beyond. We look forward to updating you on our progress over the coming quarters.

我要感謝我們的員工為公司做出的難以置信的努力和奉獻。在這些充滿挑戰的時期，我們全球團隊的承諾、韌性和適應能力值得稱讚。我們的員工是我們成功的關鍵驅動力，他們的表現使我們充滿信心，相信我們將在今年餘下時間及以後繼續取得強勁的業績並執行我們的計劃。我們期待著向您通報我們在未來幾個季度取得的進展。

With that, I would now like to turn the call over to the operator to begin our Q&A.

有了這個，我現在想把電話轉給接線員開始我們的問答。

(Operator Instructions) Your first question comes from the line of Robert Young with Canaccord.

（操作員說明）您的第一個問題來自 Canaccord 的 Robert Young。

I'd like to start in the semiconductor space. I was just wondering if you think about that business and the puts and takes around all of the chip shortage news that we're hearing today. I mean I assume that that's more of a positive driver for your business given the potential for capacity expansion in the semi-Capital Equipment business relative to any shortages that chips might have driving your business? And maybe some comments there would be helpful.

我想從半導體領域開始。我只是想知道你是否考慮過我們今天聽到的所有芯片短缺消息，以及看跌期權和看跌期權。我的意思是，我認為相對於芯片可能推動您的業務的任何短缺，考慮到半資本設備業務的產能擴張潛力，這對您的業務來說更像是一個積極的推動力？也許那裡的一些評論會有所幫助。

Rob, yes, that's correct. As you've been reading, the semiconductor -- semi-cap space has been quite strong for us and for the entire industry. We're expecting this year, year-over-year growth and also sequential growth. And we also feel that we'll grow faster than the market this year because of the new vertical investments that we've been making in our semi-cap space.

羅伯，是的，沒錯。正如您一直在閱讀的那樣，半導體——半市值空間對我們和整個行業來說都非常強大。我們預計今年將實現同比增長和環比增長。而且我們還認為，由於我們一直在我們的半盤空間進行新的垂直投資，我們今年的增長速度將快於市場。

With respect to the inverse of that, the takes, if you will. On the shortage side, I think we've managed it very well in Q1, as we highlighted in the script revenue that was gated by material shortage of $12 million, which is, frankly, fairly low. We got ahead of it. We do think that's going to increase as time moves forward, but it's more about tempering the upside than constraining the output.

關於它的倒數，如果你願意的話。在短缺方面，我認為我們在第一季度處理得很好，正如我們在腳本收入中強調的那樣，該收入因 1200 萬美元的材料短缺而受到限制，坦率地說，這是相當低的。我們領先了。我們確實認為隨著時間的推移這會增加，但更多的是緩和上行而不是限制產出。

So net-net, I think it's a positive for us, and we're looking forward to a really strong Capital Equipment year this year and probably likely into next year and beyond based on the forecast that our customers are giving us.

所以淨淨，我認為這對我們來說是積極的，我們期待著今年的資本設備非常強勁，並且可能會根據我們客戶給我們的預測進入明年及以後。

Okay. That's great color. The HPS growth that you saw, I'm curious about the broader drivers. When you see a bump in demand like that within the HPS business, what is just driving that exactly? Is that engineering work that's converting into a bigger manufacturing ramp? Or is that just an expansion of the demand in the products that you've built? Like it seems to me that like a quick jump in demand there would be less likely than other parts of the business there. Help me with that.

好的。那是很棒的顏色。你看到的 HPS 增長，我很好奇更廣泛的驅動因素。當您在 HPS 業務中看到這樣的需求激增時，究竟是什麼推動了這種激增？工程工作正在轉化為更大的製造坡道嗎？或者這只是對您所構建產品的需求的擴展？在我看來，就像需求的快速增長一樣，與那裡的其他業務相比，這種可能性更小。幫我解決這個問題。

Yes. Good question. What we've seen in the HPS business, it's been a very robust and growing market, and it's been really fueled for us by a broader adoption of our product set both within the data center and across a larger set of customers.

是的。好問題。我們在 HPS 業務中看到的是，這是一個非常強勁且不斷增長的市場，並且在數據中心和更多客戶中更廣泛地採用我們的產品集確實為我們提供了動力。

So frankly, we're gaining market share. We do business with 8 of the 10 service providers and been growing share with them. And hyperscale growth as a percent of total IT spend has been increasing. And as a result of that, we've been growing not just with the market, but also faster than the market because we -- our products are being used again by a broader set of customers. And within the data center, they're finding new uses for our products based on the offering that we have.

坦率地說，我們正在獲得市場份額。我們與 10 家服務提供商中的 8 家有業務往來，並且與他們的份額不斷增加。超大規模增長佔 IT 總支出的百分比一直在增加。因此，我們不僅與市場一起增長，而且比市場增長更快，因為我們——我們的產品再次被更廣泛的客戶使用。在數據中心內，他們正在根據我們提供的產品為我們的產品尋找新用途。

And then lastly, our operations team has just been doing a phenomenal job being able to meet higher levels of output based on the relationships we have with ecosystem partners and silicon providers as well.

最後，我們的運營團隊剛剛做了一項出色的工作，能夠根據我們與生態系統合作夥伴和矽供應商的關係來滿足更高水平的產出。

Okay. Great. And then as that Cisco revenue now as you're replacing it, is it the HPS business that you're using to backfill the capacity from Cisco? And then I'll pass on.

好的。偉大的。然後，當您更換它時，思科現在的收入是您用來回填思科容量的 HPS 業務嗎？然後我會繼續。

Yes. Exactly. And I would say largely so. Regarding Cisco transition, frankly, we couldn't have planned it any better. As I mentioned in the call, we've met all our backfill targets with a richer mix of programs, aka, Hardware Platform Solutions. And frankly, it's a lot more aligned to our strategy and capabilities. And on top of that, we've had strong demand from our base business. And when we look at the utilization in Thailand where the Cisco business has performed, it's quite strong and it's driven by a solid mix of HPS products.

是的。確切地。我會這麼說。關於 Cisco 的過渡，坦率地說，我們的計劃再好不過了。正如我在電話中提到的那樣，我們已經通過更豐富的程序組合（即硬件平台解決方案）實現了所有回填目標。坦率地說，它更符合我們的戰略和能力。最重要的是，我們的基礎業務需求強勁。當我們查看思科業務在泰國的利用率時，它非常強大，並且是由 HPS 產品的可靠組合推動的。

Our next question comes from the line of Thanos Moschopoulos with BMO Capital Markets.

我們的下一個問題來自 BMO Capital Markets 的 Thanos Moschopoulos。

Rob, the destruct to the component shortages, is that impacting some segments more than others? Or is it just fairly across the board?

Rob 是組件短缺的破壞者，它對某些細分市場的影響大於其他細分市場嗎？或者它只是相當全面？

It's impacting the segments that have higher growth rates, Thanos. So the segments that have higher growth rates are HPS segment, Capital Equipment segment, a little bit industrial, those are the segments that are impacting more. But again, I would count it as it's kind of tempering the upside versus constraining the base demand. It's a very strong demand environment in these segments, and customers are trying to accelerate their demand, and it's being paced by some of the component shortages.

它正在影響具有更高增長率的細分市場，Thanos。因此，增長率較高的部分是 HPS 部分、資本設備部分，有點工業，這些部分影響更大。但同樣，我認為它是在緩和上行而不是限制基本需求。這些細分市場的需求環境非常強勁，客戶正試圖加速他們的需求，並且一些組件短缺正在加快步伐。

Now that being said, frankly, we're all over it. We have good order coverage with our suppliers, and the teams are working it very hard.

話雖這麼說，坦率地說，我們已經結束了。我們與供應商的訂單覆蓋率很好，團隊正在努力工作。

Thanos, just to explain what Rob was mentioning, because of the planning that the team had done, we have been able to largely get ahead of the material constraints. When Rob was talking about tempering the upside, the challenge right now is drop in orders. When customers want a 6-year product within the quarter, there's just not enough time to secure the material. So we factored it into our guidance, but it's really tempering maybe additional upside.

Thanos，只是為了解釋 Rob 提到的內容，由於團隊所做的計劃，我們已經能夠在很大程度上超越材料限制。當 Rob 談到緩和上行空間時，現在的挑戰是訂單下降。當客戶在本季度內想要使用 6 年的產品時，卻沒有足夠的時間來確保材料安全。因此，我們將其納入了我們的指導方針，但它確實在緩和可能還有額外的好處。

Okay. And then you mentioned that the cash cycle days should improve, which I thought is interesting dynamic given the shortages. Is that a function of your end market mix? Or what's driving that dynamic?

好的。然後你提到現金周期天數應該有所改善，考慮到短缺，我認為這是一個有趣的動態。這是您的終端市場組合的功能嗎？或者是什麼推動了這種動態？

Yes. So cash cycle days, the metric itself is just abnormally high in the first quarter. What we're seeing is a function of the formula. It's a 2-point average, and we have a lower level of revenue and then just with Cisco coming out as well. But as we go through the year, the metric is going to get back more in line with what you would have historically expected from us. But even with the inventory growth that we have been seeing or, frankly, the reduction that we have not yet seen, it is all factored into our outlook, and we still feel comfortable on being able to generate over $100 million of cash even with the current supply chain environment.

是的。所以現金周期天數，該指標本身在第一季度異常高。我們看到的是公式的函數。這是一個 2 點的平均值，我們的收入水平較低，而且思科也出現了。但隨著我們度過這一年，該指標將回歸到更符合您以往對我們的預期。但即使我們已經看到庫存增長，或者坦率地說，我們還沒有看到庫存減少，這些都已納入我們的前景，我們仍然對能夠產生超過 1 億美元的現金感到放心，即使當前的供應鏈環境。

Great. And then finally, can you comment on the semi-equipment margins, and how they're tracking currently versus what you consider kind of being your target margin for that segment?

偉大的。最後，您能否評論一下半設備利潤率，以及他們目前的跟踪情況與您認為是該細分市場的目標利潤率是多少？

Yes. So what I would say is that the semiconductor business itself is performing very well right now. So it is in line with our expectations, and we believe that as there continues to be stronger demand in the semiconductor space that there is an opportunity still for some further margin expansion.

是的。所以我要說的是，半導體業務本身現在表現非常好。因此這符合我們的預期，而且我們相信，隨著半導體領域的需求持續強勁，利潤率仍有進一步擴大的機會。

On the display side of the business, as we commented, we're expecting the demand to start picking up towards the end of the year. And so there's an opportunity for the margins to improve in that business.

在業務的展示方面，正如我們評論的那樣，我們預計需求將在年底前開始回升。因此，該業務的利潤率有機會提高。

And so overall, what I would say is that as Capital Equipment continues to grow, we do still believe that there's some opportunity for further margin expansion.

總的來說，我要說的是，隨著 Capital Equipment 的持續增長，我們仍然相信有進一步擴大利潤率的機會。

Your next question comes from the line of Ruplu Bhattacharya with Bank of America.

你的下一個問題來自美國銀行的 Ruplu Bhattacharya。

Rob, the communications revenues came in better than expected. I think you had guided a decline of high single digits, but it was down only 2%. So can you just drill into the different end markets within communications, which one outperformed your expectations?

Rob，通信收入好於預期。我認為你指導了高個位數的下降，但只下降了 2%。那麼，您能否深入了解通信領域的不同終端市場，哪個市場的表現超出了您的預期？

And then on the Enterprise side, I think revenues came in a little bit lower than what you had guided, but also you're guiding down 30% year-on-year. So if you can just kind of highlight some of the things going on in the Enterprise side as well.

然後在企業方面，我認為收入略低於您的指導，但您的指導也同比下降了 30%。因此，如果您也可以強調企業方面正在發生的一些事情。

Sure, Ruplu. So on the comm side, the strength that we've seen is really in our networking business. We also saw some demand strength with existing programs, which is a mix of HPS and EMS. But broadly speaking, the communications upside was driven by HPS. Again, it was offset by the Cisco exit and some demand dynamics. But our non-Cisco revenue was really driven by networking and our HPS business.

當然，Ruplu。因此，在通信方面，我們所看到的優勢確實存在於我們的網絡業務中。我們還看到了現有計劃的一些需求強度，這些計劃是 HPS 和 EMS 的組合。但從廣義上講，通信的優勢是由 HPS 推動的。同樣，它被思科退出和一些需求動態所抵消。但我們的非思科收入實際上是由網絡和我們的 HPS 業務推動的。

On the Enterprise side, what we've seen is broad demand softness, market softness in HDD and compute and tougher comps. And we've had a number of ramping programs in 2020 where demand has normalized this year.

在企業方面，我們看到的是廣泛的需求疲軟、HDD 和計算市場疲軟以及更艱難的競爭。我們在 2020 年實施了多項提升計劃，今年需求已經正常化。

And operator, there's some noise in the background. Maybe you could figure out if somebody needs to go on mute.

接線員，背景中有一些噪音。也許你可以弄清楚是否有人需要保持靜音。

Okay. Thanks for the details on that, Rob. And just to drill a little bit into the component shortages, I mean which components are you seeing shortages on, I mean, specifically? And the inventory, you end up $60 million sequentially. Was that -- some of that -- are you using the strength of your balance sheet to keep some of the raw materials on hand? And do you expect the inventory to be up sequentially in the June quarter?

好的。感謝您提供詳細信息，Rob。只是為了深入了解組件短缺，我的意思是你看到哪些組件短缺，我的意思是，具體而言？而庫存，你最終會連續獲得 6000 萬美元。那是——其中一些——你是在利用資產負債表的實力來保留一些手頭的原材料嗎？您是否預計 6 月季度的庫存會連續增加？

Ruplu, I'll take the first part and pass the second part to Mandeep. So in terms of the shorts, right now, it's largely in the semiconductor side. Semiconductor lead times by our measure have increased by 50% over the last 6 months, which is, frankly, outstanding. The wafer fabs are operating at max capacity. While negative on our shortages, a very strong positive on our semi-cap business.

Ruplu，我負責第一部分，然後將第二部分交給 Mandeep。所以就空頭而言，現在主要是在半導體方面。根據我們的衡量，半導體交貨時間在過去 6 個月中增加了 50%，坦率地說，這是非常出色的。晶圓廠正在滿負荷運轉。雖然對我們的短缺不利，但對我們的半盤業務非常有利。

But on the positive side, lead times are also starting to increase. It's been about a 20% increase in lead times in the past over the last 6 months. And I do believe they will get more constrained as time moves on, tantalum capacitors, MLCCs, resistors. So I do think that will get more constrained as we get further into the year as well.

但從積極的方面來看，交貨時間也開始增加。在過去的 6 個月裡，交貨時間增加了大約 20%。而且我確實相信，隨著時間的推移，鉭電容器、MLCC 和電阻器會受到更多限制。所以我確實認為，隨著我們進入今年，這將受到更多限制。

And over to Mandeep on the inventory.

並交給 Mandeep 的清單。

Your next question comes from the line of Paul Steep with Scotia Capital.

你的下一個問題來自 Scotia Capital 的 Paul Steep。

One second. I think Mandeep was on mute. Let me ask him the last one.

一秒。我認為 Mandeep 處於靜音狀態。讓我問他最後一個。

Ruplu, let me take your question. I think we just need to wrap up your question on inventory. The inventory dollars are relatively flat on a year-over-year basis. Two dynamics happening. Number one is we are building inventory with -- for HPS. Because of the continuing growth that we're seeing, we are expecting HPS to grow sequentially as we go through the year. The other thing as well is that because of the supply chain environment, we were able to work very closely with our customers to secure material and line up to their orders. And one of the things you'll see is our deposits also increased quite a bit. So they're paying for some of that.

Ruplu，讓我來回答你的問題。我想我們只需要結束你關於庫存的問題。庫存美元與去年同期相比相對持平。兩種動力正在發生。第一是我們正在為 HPS 建立庫存。由於我們看到的持續增長，我們預計 HPS 將在今年繼續增長。另一件事是，由於供應鏈環境，我們能夠與客戶密切合作以確保材料安全並為他們的訂單排隊。你會看到的一件事是我們的存款也增加了很多。所以他們為此付出了一些代價。

In terms of performance as we go through the year, the turns are expected to improve. And so Q1 is expected to be the low point when it comes to inventory turn.

就我們今年的表現而言，預計轉折會有所改善。因此，預計第一季度將是庫存周轉率的低點。

Paul, I'll turn it over to you for your questions.

保羅，我會把它交給你來回答你的問題。

Just a couple of quick ones. First one, maybe for Rob and a little bit higher level here. If you step back and maybe walk us through, can you highlight out either in ATS or CCS, with the new programs you've been winning sort of consistently in some of the segments over the last year, 1.5 years, what's changed with customers? Is there anything meaningfully changing in terms of either your approach to the market, in terms of profitability profile or in terms of how customers are contracting and committing that we'd want to look at?

只是幾個快速的。第一個，可能是給 Rob 的，這裡的級別更高一點。如果你退後一步，也許讓我們通過，你能在 ATS 或 CCS 中突出顯示，在過去的一年中，你在某些細分市場中一直贏得的新計劃，1.5 年，客戶發生了什麼變化？在您進入市場的方法、盈利能力概況或客戶如何簽約和承諾方面，我們想要了解的是否有任何有意義的變化？

Good question. On the ATS side, we've been investing in engineering capabilities across all those segments. And a big change in the margin profile of our ATS business today and also moving forward is the dramatic increase in what we call engineering-led engagement. So we're not just in the -- we're not just the EMS provider in our ATS segment. We're actually an engineering partner as well. So that's been a continuing shift in our strategy in our contracting processes.

好問題。在 ATS 方面，我們一直在投資所有這些領域的工程能力。我們今天和未來 ATS 業務的利潤率發生了巨大變化，這就是我們所謂的以工程為主導的參與度的急劇增加。所以我們不只是 - 我們不僅僅是我們 ATS 部分的 EMS 提供商。我們實際上也是工程合作夥伴。因此，這一直是我們在合同流程中的戰略轉變。

And similarly, on the CCS side, we call that HPS, that's nothing new, if you will. We've always had a strong HPS business. And based on the products that we've designed and some secular tailwinds that we've been seeing, our HPS business, quite frankly, was just taking off and largely fueled by engineering capability and the solutions that we're providing to our customers.

同樣，在 CCS 方面，我們稱其為 HPS，如果您願意的話，這並不是什麼新鮮事。我們一直擁有強大的 HPS 業務。根據我們設計的產品和我們一直看到的一些長期順風，坦率地說，我們的 HPS 業務剛剛起飛，並且在很大程度上受到我們為客戶提供的工程能力和解決方案的推動。

Hopefully, that addressed your question.

希望這解決了您的問題。

Great. And then maybe the second one for Mandeep, the classic capital deployment question. Just to check in, I think last quarter, you were very specific about the tangible book value and how you were approaching the buyback. Any change in view on how you're sort of looking at capital deployment now that you've gone net cash positive? And then I got one very fast cleanup.

偉大的。然後可能是 Mandeep 的第二個問題，經典的資本部署問題。只是為了登記，我想上個季度，你非常具體地說明了有形賬面價值以及你是如何進行回購的。既然你的淨現金為正，你對資本配置的看法有什麼變化嗎？然後我得到了一個非常快速的清理。

Yes. Of course, Paul. So we're continuing to be opportunistic. We're really pleased with the strength of the balance sheet. As we continue to generate free cash flow, our priority will be to continue to delever. Again, we paid down $30 million this past quarter, and we have an opportunity to pay down more as we go through the year. And it really serves us in 2 ways. One is we are very focused on our EPS expansion year-over-year. And so that is helping lower our interest expense. And then it just continues to give us a healthier and healthier balance sheet, which gives us high levels of flexibility to act when we need to act.

是的。當然，保羅。所以我們繼續保持機會主義。我們對資產負債表的實力感到非常滿意。隨著我們繼續產生自由現金流，我們的首要任務將是繼續去槓桿化。同樣，我們在上個季度支付了 3000 萬美元，並且在今年我們有機會支付更多。它確實以兩種方式為我們服務。一是我們非常關注每股收益的同比增長。因此，這有助於降低我們的利息支出。然後它繼續為我們提供更健康和更健康的資產負債表，這使我們在需要採取行動時具有高度的靈活性。

When it comes to share buybacks, we will continue to be opportunistic on it. When the shares are trading at very low values, we will be in the market to buy. However, we aren't feeling that that's the first priority. And so we watch it. We will utilize the program whenever we need to. But if -- but our first priority right now is to be -- continue to look at delever.

在股票回購方面，我們將繼續投機取巧。當股票以非常低的價格交易時，我們將在市場上買入。但是，我們認為這不是首要任務。所以我們看著它。我們將在需要時使用該程序。但是，如果——但我們現在的首要任務是——繼續關注去槓桿化。

Got it. And last cleanup one for either of you. Just with the life cycle guidance going from double digit versus single digit last quarter, what's the underlying assumption that has to be true to reach that guide? Or maybe put another way, is all of what you need to hit those numbers already in hand today?

知道了。最後一次為你們中的任何一個清理。上個季度的生命週期指導從兩位數變為一位數，要達到該指導必須符合的基本假設是什麼？或者換句話說，您今天是否已經掌握了達到這些數字所需的全部內容？

Yes. So Paul, it's, of course, the combination of the 2, so it is HPS and ATS. So ATS, we are reiterating our growth expectation of 10%. And we're starting to see that, as you can see, in our guidance in the second quarter, just a very strong performance across a number of segments. And then on the HPS side, we have increased our growth expectations to be double digit, which, frankly, means 10% or more. And so when you put the 2 together, it brings Lifecycle Solutions to have a robust growth profile.

是的。所以保羅，當然是兩者的結合，所以它是 HPS 和 ATS。所以 ATS，我們重申我們 10% 的增長預期。我們開始看到，正如您所看到的，在我們第二季度的指導中，許多細分市場的表現都非常強勁。然後在 HPS 方面，我們將增長預期提高到兩位數，坦率地說，這意味著 10% 或更多。因此，當您將兩者放在一起時，生命週期解決方案將擁有強勁的增長前景。

On the ATS side, I would say that the outlook for Capital Equipment is strong at this point. And we do have new program ramps that are driving a lot of the growth in HealthTech as well as in industrial.

在 ATS 方面，我會說 Capital Equipment 的前景在這一點上很強勁。我們確實有新的計劃坡道，這些坡道正在推動健康科技和工業領域的大量增長。

And then on the HPS side, similarly, we have a firm outlook from our customers. In some cases, we have firm POs. In other cases, we get the deals as they come along. But I would say that the outlook for HPS is stronger today than it was even 3 months ago.

然後在 HPS 方面，同樣地，我們對客戶有堅定的看法。在某些情況下，我們有固定的 PO。在其他情況下，我們會在交易出現時得到交易。但我要說的是，今天 HPS 的前景甚至比 3 個月前還要強勁。

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

你的下一個問題來自 RBC Capital Markets 的 Paul Treiber。

I was wondering if you could speak to the linearity or the expected linearity of growth in HPS over the year. Is there any -- I mean the 46% Q1 is quite strong. And then the outlook for a 10% or more for the remainder of the year does show the acceleration. Like how should we think about it between Q2 and Q4?

我想知道你是否可以談談一年中 HPS 增長的線性或預期線性。有沒有——我的意思是 46% 的第一季度相當強勁。然後今年剩餘時間 10% 或更多的前景確實顯示了加速。就像我們應該如何在 Q2 和 Q4 之間考慮它？

Yes. Paul, so we're really pleased with the growth that we're seeing right now in HPS. As you'll recall, the growth last year really went into overdrive starting in the second quarter. And so we are going to start to see some tougher comps. We wouldn't expect necessarily 46% growth in the next couple of quarters.

是的。保羅，所以我們對 HPS 現在看到的增長感到非常高興。你會記得，去年的增長確實從第二季度開始超速增長。因此，我們將開始看到一些更強硬的組合。我們預計未來幾個季度不一定會增長 46%。

That being said, what we are comfortable with at this point is that we would be seeing sequential growth. And so $200 million in the first quarter, we are expecting more than that in the second quarter. But overall, just very good overall performance. And then when you look at it on a full year basis, it will be stronger than last year, of course. But we do need to moderate expectations because we just had various tough comps when you go to Q2 and Q4 of last year.

話雖如此，我們目前感到滿意的是我們將看到連續增長。因此，第一季度為 2 億美元，我們預計第二季度會更多。但總的來說，只是非常好的綜合表現。然後當你從全年的角度看它時，它當然會比去年強。但我們確實需要降低預期，因為當你進入去年第二季度和第四季度時，我們只有各種艱難的競爭。

And then digging a bit more further into that, like the underlying demand drivers remain intact. So ultimately, is it -- do you see sequential growth through the year and the demand in the pipeline from hyperscales and others continue to build in that business?

然後再深入挖掘一下，就像潛在的需求驅動因素保持不變一樣。所以最終，你是否看到全年的連續增長以及來自超大規模和其他人的管道需求繼續建立在該業務中？

Yes. I mean Rob touched on it a little bit, which is we're doing business right now with 8 of the top 10 hyperscalers. And the 8 that we're doing it with actually represent the vast majority of hyperscaler CapEx. And then when you look at the hyperscaler concentration as the total -- in terms of total hardware spend, hyperscalers are continuing to take more and more share of the overall market. And so we're participating in that upside with them. We are concentrated in only a couple of customers. Because of wins that have been happening in the business over the last year to 2 years, there are a number of programs ramping. And so we do have a diverse set of product offerings that our customers are buying and we also have a diverse set of customer logos. Ahead of the growth that we are anticipating is with a lot of the new program mix are [in the component availability].

是的。我的意思是 Rob 稍微提到了一點，那就是我們現在正在與前 10 大超大規模企業中的 8 家開展業務。而我們正在做的 8 個實際上代表了超大規模 CapEx 的絕大部分。然後，當您將超大規模集中度視為總數時——就硬件總支出而言，超大規模企業將繼續在整個市場中佔據越來越多的份額。因此，我們正在與他們一起參與其中。我們只專注於幾個客戶。由於在過去一年到 2 年的時間裡在業務中取得了成功，因此有許多項目正在加速實施。因此，我們確實擁有客戶購買的多種產品，我們也有多種客戶徽標。在我們預期的增長之前，許多新程序組合 [in the component availability]。

And I would also add, Paul, that in this segment, particularly because of the demand strength is so strong, our growth is really going to be, again, tempered by or governed by our ability to get components. But given the nature of the demand, the design nature of the demand, I would also say that it's not perishable.

保羅，我還要補充一點，在這個領域，特別是因為需求強度如此強勁，我們的增長真的會再次受到我們獲得組件的能力的影響或支配。但考慮到需求的性質，需求的設計性質，我還要說它是不易腐爛的。

So again, we're expecting good, strong sequential growth throughout the year. We do have some tough comps, but good strong sequential growth. And because of the strong demand environment, it'll probably be more paced by component availability than anything else.

因此，我們再次期待全年良好、強勁的連續增長。我們確實有一些艱難的競爭，但連續增長強勁。而且由於需求環境強勁，組件可用性可能比其他任何因素都更重要。

That's a good help, a good point. Just shifting over to the health care business, could you speak to the breadth of momentum in that business? I think the Canadian ventilators started to ramped up I think last quarter. But how do you see outside of that contract in terms of other opportunities and the breadth of the momentum there?

這是一個很好的幫助，一個很好的觀點。剛剛轉向醫療保健業務，您能談談該業務的發展勢頭嗎？我認為加拿大的呼吸機在上個季度開始增加。但是你如何看待合同之外的其他機會和勢頭的廣度？

Good question. So HealthTech business continues to exhibit strong growth, very strong growth in Q1 on a year-over-year basis or also sequentially. I would say about half the growth we're experiencing is kind of COVID-related demand, and there is a PPE point of care, patient monitoring imaging devices. And some of that growth that we're seeing in the first half of the year will probably temper a bit in the back half of the year.

好問題。因此，HealthTech 業務繼續呈現強勁增長，第一季度同比或環比增長非常強勁。我想說我們正在經歷的增長中大約有一半是與 COVID 相關的需求，並且有 PPE 護理點、患者監測成像設備。我們在今年上半年看到的一些增長可能會在下半年有所緩和。

But the other half of the growth we're seeing is really driven by new program wins. And I would say they're not directly related to COVID. They're in the areas of surgical instruments, medical hardware patient monitoring. So when you put those together, we're expecting a rather strong year from our HealthTech business all in those areas.

但我們看到的另一半增長實際上是由新項目的勝利推動的。我會說它們與 COVID 沒有直接關係。他們在手術器械、醫療硬件患者監測領域。因此，當您將這些放在一起時，我們預計我們的 HealthTech 業務在這些領域將有一個相當強勁的一年。

And then just lastly from me, just on the A&D business, how do you balance between profitability in light of lower utilization of demand in the near term versus trying to sustain investments in that business because I do think it's a long-term growth opportunity. How do you sort of balance those 2 here?

然後最後來自我，就 A&D 業務而言，鑑於近期需求利用率較低，您如何在盈利能力與試圖維持對該業務的投資之間取得平衡，因為我確實認為這是一個長期增長機會。您如何在這里平衡這兩個？

Yes. That is the question that we talk about. The answer is we're trying to grow where the -- in our A&D business where the markets are more favorable and that being in our defense business. So as we mentioned on the call, we are expecting some revenue growth in the back half of the year. It's majority in the defense space, and it's majority driven by some of the wins that we had last year that are starting to ramp in the back half of this year. We're also expecting some slight early signs of recovery in the Biz App market.

是的。這就是我們談論的問題。答案是我們正努力在市場更有利的 A&D 業務和我們的國防業務中發展。因此，正如我們在電話會議上提到的那樣，我們預計今年下半年的收入會有所增長。它在國防領域佔多數，而且主要是由我們去年取得的一些勝利推動的，這些勝利在今年下半年開始增加。我們還預計 Biz App 市場會出現一些輕微的早期復蘇跡象。

That being said, we do have several sites in the network that are at critical mass, and we're keeping them at that level, so we don't lose capability until the market does recover. But it has been dragging on our ATS segment. But again, despite that, our ATS segment seems to -- is definitely stronger on a margin perspective, largely fueled by the other verticals that we mentioned in the semi-cap, HealthTech, industrial.

話雖這麼說，我們在網絡中確實有幾個站點處於臨界質量，並且我們將它們保持在該水平，因此在市場恢復之前我們不會失去能力。但它一直拖累我們的 ATS 部門。但同樣，儘管如此，我們的 ATS 部門似乎——從利潤率的角度來看肯定更強大，這在很大程度上是由我們在半市值、健康科技、工業中提到的其他垂直行業推動的。

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

你的下一個問題來自 Todd Coupland 與 CIBC 的對話。

Yes. I wanted to ask about market conditions post the Cisco engagement. With that decision, did it have a noticeable impact on overall pricing in the market with respect to not only yourselves, but the overall market? Cisco has traditionally been very aggressive with their suppliers. But with you, a major Tier 1 supplier, pushing back, are you seeing a bit of the power ship back to someone like yourself to drive better pricing? Is there a better tone in the market as a result of that decision?

是的。我想詢問 Cisco 參與後的市場狀況。有了這個決定，它是否對市場的整體定價產生了顯著影響，不僅對你們自己，而且對整個市場？傳統上，思科對其供應商非常積極。但是，作為一家主要的一級供應商，您正在反擊，您是否看到一些動力回饋給像您這樣的人以推動更好的定價？該決定是否會改善市場基調？

I think the -- in core EMS, so in the non-commoditized space, I think pricing usually is reflective of how utilized people's factories are. In some cases, where effective utilization is low, some EMS players might make a decision to bring in lower-margin work to keep the utilization up and the inverse is true.

我認為 - 在核心 EMS 中，所以在非商品化領域，我認為定價通常反映了人們工廠的利用率。在某些情況下，有效利用率較低，一些 EMS 參與者可能會決定引入利潤率較低的工作以保持利用率較高，反之亦然。

So I think the pricing environment is a reflection of the demand environment. With the demand environment being generally robust across most of EMS, I think pricing has been more disciplined.

所以我認為定價環境是需求環境的反映。由於大多數 EMS 的需求環境普遍強勁，我認為定價更加嚴格。

Again, our strategy is to shift away from the lower value-add stuff into the higher value-add stuff. So there's higher barriers to entry, sticky relationships. And the margins tend to be higher because of the higher value add. And that strategy I think has proven out for us and will continue to prove itself for us.

同樣，我們的戰略是從低附加值的東西轉向高附加值的東西。所以有更高的進入壁壘，粘性關係。由於更高的附加值，利潤率往往更高。我認為該策略已經為我們證明了，並將繼續為我們證明自己。

And post Cisco, are you happy with the CCS mix? Or do you anticipate you'll need to have a regular sort of upgrading of the mix as you look forward over the next 2 or 3 years?

在 Cisco 之後，您對 CCS 組合滿意嗎？或者您是否預計在未來 2 或 3 年內需要定期升級組合？

Right now we're very happy with the CCS mix. Market conditions always change, so it's -- we always take a look at it, but the mix within CCS is very good. In the EMS business, it's in the higher value-add areas. And HPS business is growing nicely. And even in the EMS space, we're working with those customers to kind of move up the value chain and to introduce HPS solutions into those customers as well.

現在我們對 CCS 組合非常滿意。市場條件總是在變化，所以它——我們總是關注它，但 CCS 內部的組合非常好。在 EMS 業務中，它屬於附加值較高的領域。 HPS 業務增長良好。甚至在 EMS 領域，我們也在與這些客戶合作，以提升價值鏈，並將 HPS 解決方案也引入這些客戶。

And then my last question is, you have the mixes that you have, you have excess capital on the balance sheet for growth, are there any other verticals where you think you should expand either in ATS or CCS? Just talk about what might make sense over the next 2 or 3 years.

然後我的最後一個問題是，你有你所擁有的組合，你的資產負債表上有過剩的資本用於增長，你認為你是否應該在 ATS 或 CCS 中擴展任何其他垂直領域？只談未來 2 或 3 年可能有意義的事情。

Yes. I think that goes back to our potential M&A strategy. When we're thinking about capabilities, we always take a look at does it make sense for us to invest organically and build those capabilities or is there a sort of more accretive path to buy them. We usually default because of the risk factor to developing those capabilities in-house.

是的。我認為這可以追溯到我們潛在的併購戰略。當我們考慮能力時，我們總是會考慮有機投資和構建這些能力對我們來說是否有意義，或者是否有一種更增值的途徑來購買它們。由於內部開發這些能力的風險因素，我們通常會違約。

And we've been making investments. With many of the verticals within Capital Equipment, we've been working on vertical integration in areas such as, well, paint and cleaning. Within our HealthTech business, we've been adding engineering capability. Within our industrial business, we've been adding engineering and design capability as well.

我們一直在進行投資。對於 Capital Equipment 中的許多垂直領域，我們一直在致力於油漆和清潔等領域的垂直整合。在我們的 HealthTech 業務中，我們一直在增加工程能力。在我們的工業業務中，我們也一直在增加工程和設計能力。

In terms of broad new spaces, we're always looking at it. But at this stage of the game, I don't think there's anything that material to announce or to share with the community.

在廣闊的新空間方面，我們一直在關注它。但在遊戲的這個階段，我認為沒有什麼可以宣布或與社區分享的材料。

Your next question comes from the line of Jim Suva with Citigroup Investment.

你的下一個問題來自花旗集團投資部的 Jim Suva。

I have two questions, and so you can answer them in the order you want. Can you give us a little bit of insights or updates on your cloud efforts? I know in the past, it's been a bit of a hidden gem in the company of Celestica about your cloud doing so well. Maybe, I don't know how much details you can give, but any updates on that?

我有兩個問題，所以你可以按照你想要的順序回答。你能給我們一些關於你的雲工作的見解或更新嗎？我知道過去，在 Celestica 公司中，您的雲表現如此出色一直是一顆隱藏的寶石。也許，我不知道你能提供多少細節，但有什麼更新嗎？

And then secondarily, while a full year guidance is hard to do, there are some moving parts this year for the year-over-year comparisons with the disengagement, which, I believe, if my memory is right, is around $500 million. Can you correct me if I'm right or wrong on that? And if so, do you think consensus for this year, which is around $5.5 billion or down 5% year-over-year, is that calibrated and correctly adjusting for some things? I just want to make sure since there's some moving parts that were kind of calibrated, generally correct, I suspect, are there any color or direction?

其次，雖然很難做出全年指導，但今年與脫離接觸的同比比較有一些變化，我相信，如果我沒記錯的話，大約是 5 億美元。如果我對此是對還是錯，你能糾正我嗎？如果是這樣，您是否認為今年的共識（約為 55 億美元或同比下降 5%）是否針對某些事情進行了校準和正確調整？我只是想確定，因為有一些移動部件經過校準，通常是正確的，我懷疑，是否有任何顏色或方向？

Jim, I'll handle the first one, and I'll ask Mandeep to talk about Cisco. But in terms of our cloud business, we have several sources of growth. As we mentioned on other calls, a comprehensive road map is really around all the core technologies in the data center. So within switching, which has been a key driver of growth this year, quantity is one of the key drivers. We have very strong positions with market leaders in other speeds as well, also a healthy [life cyle] business.

吉姆，我會處理第一個問題，我會請曼迪普談談思科。但就我們的雲業務而言，我們有幾個增長來源。正如我們在其他電話會議上提到的，一個全面的路線圖實際上是圍繞著數據中心的所有核心技術。因此，在轉換這一今年增長的關鍵驅動因素中，數量是關鍵驅動因素之一。我們在其他速度方面也與市場領導者有著非常強大的地位，也是一個健康的 [life cyle] 業務。

Edge is also a source of growth. We've seen strong data center cloud offering, including HPS solutions. And that's been a driver for us as data center workloads move to the edge. We're seeing some strength from some of our comms customers on the wired side given some expansion from 4G to 5G. And we're also developing some edge programs in the service space that are resonating with some original customers. And we're working with them to make sure that they have the right edge solutions and the requirements.

邊緣也是增長的源泉。我們已經看到強大的數據中心雲產品，包括 HPS 解決方案。隨著數據中心工作負載轉移到邊緣，這一直是我們的驅動力。考慮到從 4G 到 5G 的一些擴展，我們在有線方面看到了一些通信客戶的實力。我們還在服務領域開發一些邊緣程序，這些程序引起了一些原始客戶的共鳴。我們正在與他們合作，以確保他們擁有正確的邊緣解決方案和要求。

And lastly, on compute, listen, that's a healthy business as well as the data centers continue to expand AI and ML applications. So -- and we also have healthy positions with our enterprise and service provider customers as well. So across, again, all the key technologies and the data center are -- have very good positions. That's been a driver of growth. And it's a very sticky business also because with each successful development cycle and product launch that we have with our cloud providers, there's an increased resistance for our partner to change given the criticality of the products to our customers. So success is beating success, and that's been a key driver of our growth as well.

最後，在計算方面，聽著，這是一個健康的業務，數據中心也在繼續擴展 AI 和 ML 應用程序。所以 - 我們也與我們的企業和服務提供商客戶保持健康的立場。因此，所有關鍵技術和數據中心再次處於非常有利的地位。這是增長的驅動力。這也是一項非常棘手的業務，因為隨著我們與雲提供商的每一個成功的開發週期和產品發布，考慮到產品對我們客戶的重要性，我們的合作夥伴改變的阻力越來越大。所以成功就是戰勝成功，這也是我們成長的關鍵驅動力。

And the second, I'll turn it over to Mandeep.

第二，我會把它交給 Mandeep。

Yes. Jim, so I'll stop short of providing full year revenue guidance, but I will double-click on the pieces. And so as you hit on it, there are parts of the business that are growing quite nicely. So our Lifecycle Solutions revenue at the end of last year was just under $3 million. And again, we're targeting 10% or more growth in that overall portfolio, which is our HPS and our ATS businesses. So $300 million or more growth we're anticipating from there.

是的。吉姆，所以我不會提供全年收入指導，但我會雙擊這些部分。因此，當您發現它時，業務的某些部分增長得非常好。因此，我們去年年底的生命週期解決方案收入略低於 300 萬美元。再一次，我們的目標是在整個投資組合中實現 10% 或更多的增長，這是我們的 HPS 和我們的 ATS 業務。因此，我們預計從那裡獲得 3 億美元或更多的增長。

On the Cisco piece, about $520 million of revenue is coming out year-over-year. And so you can -- that's the number one thing that's offsetting the growth in Lifecycle Solutions. What I will say is, we gave remarks on our growth for the non-Cisco portfolio, so essentially the company ex Cisco. We grew in the first quarter of 7%. The midpoint of our guidance implies 3% growth in the second quarter, and we are targeting growth in Q3 and in Q4 on a year-over-year basis for the non-Cisco portfolio.

在思科方面，年收入約為 5.2 億美元。所以你可以——這是抵消生命週期解決方案增長的第一件事。我要說的是，我們對非思科產品組合的增長發表了評論，因此本質上是思科前的公司。我們在第一季度增長了 7%。我們指引的中點意味著第二季度增長 3%，我們的目標是非思科投資組合在第三季度和第四季度實現同比增長。

Your next question comes from the line of Matt Sheerin with Stifel.

你的下一個問題來自 Stifel 的 Matt Sheerin。

I wanted to just ask just a question regarding your Enterprise segment, which is down by double digits. It sounds like your outlook, Rob, is more cautious in -- on that group. I know there's some tough comps you're up against. But we are hearing signs of on-prem infrastructure spending gradually improving, particularly as companies get back as projects that were pushed out get renewed. Are you seeing that? Or are you just continuing to hear cautious commentary from your own customers?

我只想問一個關於您的企業部門的問題，該部門下降了兩位數。聽起來你的觀點，Rob，對那個群體更加謹慎。我知道你要面對一些艱難的競爭。但我們聽到了本地基礎設施支出逐漸改善的跡象，尤其是隨著被推遲的項目得到更新，公司又回來了。你看到了嗎？還是您只是繼續聽到自己客戶的謹慎評論？

Based on the mix of programs that we have and we're hearing a cautious mix, we've had -- last year was a particularly strong year for us. So a lot of the comps that we think are very -- are really tough, at least, for us, on the storage side. And also the same on the service side.

根據我們現有的項目組合，我們聽到了謹慎的組合，我們已經 - 去年對我們來說是特別強勁的一年。因此，我們認為很多 comps 非常 - 真的很難，至少對我們來說，在存儲方面是這樣。在服務端也一樣。

So that's kind of a key driver of some of the year-over-year comps, the year-over-year lower guidance, if you will, and the mix of products that we have. And this, in our view, there's general softness in HDD and external storage as well.

所以這是一些同比比較的關鍵驅動因素，同比較低的指導，如果你願意，以及我們擁有的產品組合。在我們看來，硬盤驅動器和外部存儲也普遍疲軟。

Okay. And just another inventory question. Regarding your outlook, I think you said that you expected your inventory turns actually to be -- to improve as you get through the year, even though inventory levels are higher. Is that correct?

好的。還有另一個庫存問題。關於你的前景，我想你說過你預計你的庫存周轉率實際上是——隨著你今年的到來而改善，即使庫存水平更高。那是對的嗎？

That's right, Matt. So we expect that our first quarter revenue is going to be our lowest quarter of revenue in the year. And a lot of the inventory that we have on hand, some of it was very strategically brought in to support some of the growth that we're seeing. And so we expect that our inventory turns will be improving sequentially.

沒錯，馬特。因此，我們預計第一季度的收入將是今年收入最低的一個季度。我們手頭有很多庫存，其中一些是非常戰略性地引入的，以支持我們看到的一些增長。因此，我們預計我們的庫存周轉率將連續改善。

Your last and final question comes from the line of Daniel Chan with TD Securities.

你的最後一個也是最後一個問題來自道明證券的 Daniel Chan。

I just want to drill into the semi-cap opportunity a little bit more. I'm just wondering, like we've seen a number of fabs announced, expanded CapEx and then also some of the suppliers take forecasts up. To what extent has that flowed through to you? Just trying to get a sense for the opportunity for even more upside to what you've been seeing. So I'm just kind of curious whether you're seeing some of those orders really accelerate or you think there's more to go.

我只想多鑽研半盤機會。我只是想知道，就像我們看到許多晶圓廠宣布擴大資本支出，然後一些供應商也提高了預測。這在多大程度上影響了你？只是想了解一下你所看到的更多好處的機會。所以我很好奇你是否看到其中一些訂單真的在加速增長，或者你認為還有更多訂單要做。

No. It's -- Dan, it's Rob. It's a very strong semi-cap environment right now. We're the largest or one of the largest in our space and have leading positions with all the major equipment manufacturers that do outsourcing. So it's been a direct flow through from the fabs to them right to us. And again, this year, a large portion of our growth is not just by a rising card, but it's really by new programs or share gains. And all of those new programs are based on the investments that we made during the down cycle and some new verticals and some capacity adds as well. So we think we're going to be a direct beneficiary of what we're seeing going on in the M fabs as well.

不，是——丹，是羅布。現在是一個非常強大的半市值環境。我們是我們所在領域最大的公司或最大的公司之一，並且在所有進行外包的主要設備製造商中都處於領先地位。所以這是從晶圓廠到他們再到我們的直接流程。同樣，今年，我們增長的很大一部分不僅僅是通過一張上升的卡片，而是通過新項目或份額收益。所有這些新項目都是基於我們在下行週期中所做的投資，以及一些新的垂直領域和一些產能的增加。因此，我們認為我們也將成為 M 晶圓廠正在發生的事情的直接受益者。

Okay. That's helpful. And then on the communications side, as you gain -- as your customers in HPS continue to gain share and you guys gained wallet share, I'm just curious whether that has any direct impact on some of the relationships that you have with some of your larger customers. Obviously, you've disengaged with Cisco, but you've got another large network or communications provider there. As you're gaining all the share, does that change the conversation a little bit?

好的。這很有幫助。然後在通信方面，當你獲得 - 隨著你在 HPS 的客戶繼續獲得份額並且你們獲得了錢包份額，我很好奇這是否對你與某些人的某些關係有任何直接影響你的大客戶。顯然，您已經脫離了 Cisco，但那裡有另一個大型網絡或通信提供商。當您獲得所有份額時，這是否會稍微改變對話？

Not materially. I mean I think our -- between our cloud providers and our traditional OEMs, I think they view us as an enabler to their success versus anything else. And they're pulling on solutions that we offer -- both offer in our HPS business in one way or another. So the conversations have been healthy on both sides. I think they're seeing the value in having someone like Celestica actually designing their products for them and also provide other value-added services. So I think the model -- I think this whole pandemic has kind of shifted that model and accelerated that model moving forward. So it's been a net benefit on all lines of business.

不是物質上的。我的意思是我認為我們的 - 在我們的雲提供商和我們的傳統 OEM 之間，我認為他們認為我們是他們成功的推動者，而不是其他任何東西。他們正在利用我們提供的解決方案——兩者都以一種或另一種方式在我們的 HPS 業務中提供。所以雙方的對話都很健康。我認為他們看到了讓像 Celestica 這樣的人實際為他們設計產品並提供其他增值服務的價值。所以我認為這種模式——我認為整個大流行病已經改變了這種模式並加速了這種模式向前發展。因此，它對所有業務線都產生了淨收益。

Ladies and gentlemen, that concludes our Q&A portion of the call today, and I will now turn the call back over to Rob for closing remarks.

女士們，先生們，今天電話的問答部分到此結束，我現在將把電話轉回給 Rob 作結束語。

Thank you, operator.

謝謝你，運營商。

We're off to a strong start in 2021 after a strong finish to 2020. We feel our efforts to diversify our portfolio are yielding results for the Lifecycle Solutions, representing 59% of the company's revenue. The revenue of the company's non-Cisco business grew 7% year-over-year. And additionally, our operating margins continue to expand. And in Q1 '21, we posted our fifth consecutive sequential quarter of year-over-year non-IFRS margin expansion.

在 2020 年取得了強勁的成績之後，我們在 2021 年有了一個良好的開端。我們認為，我們使產品組合多樣化的努力正在為生命週期解決方案帶來成果，占公司收入的 59%。公司非思科業務收入同比增長7%。此外，我們的營業利潤率繼續擴大。在 21 年第一季度，我們公佈了連續第五個季度非 IFRS 利潤率同比增長。

We're excited about our efforts to transform our business are yielding results. In May, we will be hosting another roundtable discussion for our investors. This time, we will focus in on our Capital Equipment segment. So please stay tuned for more details.

我們很高興我們為轉變業務所做的努力正在取得成果。 5 月，我們將為投資者舉辦另一場圓桌討論會。這一次，我們將專注於我們的資本設備部分。因此，請繼續關注更多詳情。

I'd like to thank our global team for remaining vigilant in keeping themselves and each other safe. And thank you all for joining today's call. I look forward to updating you as we progress throughout the year.

我要感謝我們的全球團隊保持警惕，確保自己和彼此的安全。感謝大家參加今天的電話會議。隨著我們全年的進展，我期待著為您更新。

Ladies and gentlemen, this concludes today's conference call. Thank you for participating. You may now disconnect.

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。