Cohu Inc (COHU) 2023 Q4 法說會逐字稿

Hello, and welcome to the Cohu, Inc. Q4 2023 financial results conference call. At this time, all participants are in a listen only After the speaker presentation, there will be a question-and-answer session. (Operator Instructions) Once again, please be advised that today's conference is being recorded and it is now my pleasure to introduce Chief Financial Officer, Jeff Jones.

您好，歡迎參加 Cohu, Inc. 2023 年第四季財務業績電話會議。此時，所有參與者都處於只聽演講者演講之後，將進行問答環節。（操作員說明） 再次請注意，今天的會議正在錄製中，現在我很高興介紹財務長 Jeff Jones。

Good afternoon, and welcome to our conference call to discuss Cohu's fourth Quarter 2023 results and first quarter 2024 outlook. I'm joined today by our President and CEO, Luis Müller. If you need a copy of our earnings release, you may access it from our website at cohu.com or by contacting Cohu Investor Relations.

下午好，歡迎參加我們的電話會議，討論 Cohu 2023 年第四季業績和 2024 年第一季前景。今天我們的總裁兼執行長 Luis Müller 也加入了我的行列。如果您需要我們的收益發布副本，您可以從我們的網站 cohu.com 或聯絡 Cohu 投資者關係部門存取。

There's also a slide presentation in conjunction with today's call that may be accessed on Cohu's website in the Investor Relations section. Replays of this call will be available via the same page after the call concludes now to the Safe Harbor. During today's call, we will make forward-looking statements reflecting management's current expectations concerning Cohu's future business. These statements are based on current information that we have assessed, but which by its nature, is subject to rapid and even abrupt changes. We encourage you to review the Forward-Looking Statements section of the slide presentation and the earnings release, as well as Cohu's filings with the SEC, including the most recently filed Form 10 K and Form 10 Q. Our comments speak only as of today, February 15th, 2024, and Cohu assumes no obligation to update these statements for developments occurring after this call.

今天的電話會議還有一個幻燈片演示，可以在 Cohu 網站的投資者關係部分訪問。安全港通話結束後，可透過同一頁面重播本次通話。在今天的電話會議中，我們將做出前瞻性聲明，反映管理層目前對 Cohu 未來業務的預期。這些陳述是基於我們評估的當前訊息，但就其性質而言，可能會發生快速甚至突然的變化。我們鼓勵您查看投影片簡報和收益發布的前瞻性陳述部分，以及 Cohu 向 SEC 提交的文件，包括最近提交的 10 K 表格和 10 Q 表格。我們的評論僅代表今天， 2024 年2 月15 日， Cohu 不承擔針對此次電話會議後發生的事態發展更新這些聲明的義務。

Finally, during this call, we will discuss certain non-GAAP financial measures. Please refer to our earnings release and slide presentation for reconciliations to the most comparable GAAP measures. Now I'd like to turn the call over to Luis Müller, Cohu's President and CEO. Luis?

最後，在本次電話會議中，我們將討論某些非公認會計準則財務指標。請參閱我們的收益發布和幻燈片演示，以了解與最具可比性的公認會計準則衡量標準的對帳。現在我想將電話轉給 Cohu 總裁兼執行長 Luis Müller。路易斯？

Hi, and good afternoon. Fourth-quarter results were in line or better than guidance, with non-GAAP gross margin of 48.5% and EPS of $0.23. Fiscal 2023 non-GAAP gross margins set a new cohort record at approximately 48% and adjusted EBITDA was approximately 18% of revenue. Despite softening market conditions, Cohu was able to deliver strong profitability and full year non-GAAP EPS of $1.62 per share.

你好，下午好。第四季業績符合或優於指引，非 GAAP 毛利率為 48.5%，每股收益為 0.23 美元。 2023 財年非 GAAP 毛利率創下約 48% 的新同期紀錄，調整後 EBITDA 約為營收的 18%。儘管市場環境疲軟，Cohu 仍能夠實現強勁的獲利能力，全年非公認會計準則每股收益為 1.62 美元。

On October second, we announced the acquisition of equip test engineering, which we refer to as EQT. with the goal to expand our test interface products and recurring revenue that continues to deliver resilient profitability through industry cycles. Late last quarter, we completed construction and transferred all contactor manufacturing to a new 92,000 square foot facility in the Philippines. We held an opening event with customers on January 17th, and the facility is already ramping manufacturing of test contactors to make Q1 deliveries. The goal is to improve efficiency and quality, lower cost and lead time of interface products, positioning the Company to quickly respond to demand and to capitalize on the next wave of growth.

10月2日，我們宣布收購Equip Test Engineering公司，我們稱之為EQT。目標是擴大我們的測試介面產品和經常性收入，從而在整個產業週期中繼續提供有彈性的獲利能力。上個季度末，我們完成了建設，並將所有接觸器製造轉移到菲律賓一座佔地 92,000 平方英尺的新工廠。我們於 1 月 17 日與客戶舉行了開幕活動，該工廠已經開始加大測試接觸器的製造力度，以實現第一季的交付。目標是提高效率和質量，降低介面產品的成本和交貨時間，使公司能夠快速回應需求並利用下一波成長。

A significant aspect of our strategy continues to be to expand Cohu's recurring business, which delivered revenue of $310 million over the last 12 months with a three-year compound growth rate of 5%. Part of this is growing our software revenue. And at the end of last year, we introduced a new solution under code used the iCore analytics platform, RAI. inspection software, and we are pleased to receive initial orders from two customers for this new AI vision capability that delivers higher first pass inspection yield.

我們策略的一個重要面向仍然是擴大 Cohu 的經常性業務，該業務在過去 12 個月內實現了 3.1 億美元的收入，三年複合成長率為 5%。其中一部分是增加我們的軟體收入。去年年底，我們在程式碼下引入了一個使用 iCore 分析平台 RAI 的新解決方案。我們很高興收到兩家客戶對這種新的人工智慧視覺功能的初始訂單，該功能可提供更高的首次通過檢測良率。

However, estimated test cell utilization dropped another two points to 71% at the end of Q4. The sequential decline was entirely with IDM customers. Wireless assets utilization held flat quarter over quarter. Similar to recent announcements from our automotive and industrial semiconductor device customers call you is experiencing softer demand for test and inspection systems in these markets.

然而，預計測試電池利用率在第四季末又下降了兩個百分點，至 71%。環比下降完全是 IDM 客戶造成的。無線資產利用率季平。與我們的汽車和工業半導體設備客戶最近發布的公告類似，您正在經歷這些市場對測試和檢測系統的需求疲軟。

Utilization across other market segments also remained low at the end of Q4, with computing at 68%, consumer at 69% and mobile at 76%. We know well the semiconductor cycles and the importance of staying focused on new product development and customer qualifications between upcycles to position the Company for the recovery and rates. We recently introduced Micrus sense which is a new memory tester for high signal-to-noise ratio microphones. In other words, precision microphone. And we received initial orders from a major U.S. manufacturer for lab and production test starting in the second half of this year. Our diamond X tester in handlers were also qualified for several new customers in China supporting local automotive in display driver IC manufacturing.

截至第四季末，其他細分市場的利用率也維持在較低水平，其中計算利用率為 68%，消費者為 69%，行動裝置為 76%。我們深知半導體週期以及在升級週期之間保持專注於新產品開發和客戶資格的重要性，以確保公司的復甦和利率。我們最近推出了 Micrus sense，這是一款用於高信噪比麥克風的新型記憶體測試儀。換句話說，精密麥克風。我們從今年下半年開始收到了美國一家主要製造商的實驗室和生產測試的初步訂單。我們的處理機中的 Diamond X 測試儀也獲得了中國幾家新客戶的認可，為當地汽車的顯示驅動器 IC 製造提供支援。

We are also pursuing stronger and strategic alignment with computing customers, particularly hyperscalers, expanding data center infrastructure. Our proprietary thermal technology is key testing future large data center processors, also a DAS and other intelligent devices as a I migrate to the edge applications. There is a clear trend to higher power dissipation during test, which lends itself well to cool use T core thermal subsystems Similarly, our Dionex is a cost-effective, versatile mixed signal tester that is being considered by several customers for the intelligent edge.

我們也尋求與運算客戶（特別是超大規模客戶）進行更強有力的策略合作，擴展資料中心基礎設施。我們專有的熱技術是測試未來大型資料中心處理器、DAS 和其他智慧型裝置遷移到邊緣應用的關鍵。測試期間存在明顯的更高功耗趨勢，這非常適合冷卻使用T 核心熱子系統。同樣，我們的Dionex 是一款經濟高效的多功能混合訊號測試儀，多家客戶正在考慮將其用於智慧邊緣。

Diamond AX is an excellent solution for microcontrollers and digital devices at the edge node offering low to mid-range digital device test capabilities are a very affordable cost as a high growth in mobile devices. So we'll RF with the continuation of 5G deployments. We're very excited about the proliferation of new AI capable products like next-generation smartphones, VR goggles and other types of devices. These are an excellent fit for Tessera and Dionex and for customers pursuing a broad portfolio of devices for edge applications.

Diamond AX 是邊緣節點微控制器和數位裝置的絕佳解決方案，提供中低階數位裝置測試功能，隨著行動裝置的高速成長，成本非常實惠。因此，我們將繼續進行 5G 部署。我們對下一代智慧型手機、VR 護目鏡和其他類型設備等新型人工智慧產品的激增感到非常興奮。這些非常適合 Tessera 和 Dionex 以及尋求廣泛的邊緣應用設備組合的客戶。

Although near term demand is likely to remain subdued, our major customers have been forecasting a semiconductor recovery for the second half of 2024 with lead times now back to normal, Cohu is well positioned to quickly respond to customers' needs as test cell utilization improves through the second half of this year and into 2025. We will continue executing our strategy to grow recurring business, broaden the use of Diamond action to automotive and industrial and data center customers and to our inspection and metrology portfolio and increased subscriptions to our emerging software business.

儘管近期需求可能仍然低迷，但我們的主要客戶一直預測2024 年下半年半導體將復甦，交貨時間現已恢復正常，隨著測試單元利用率的提高，Cohu 已做好充分準備，能夠快速響應客戶的需求今年下半年直至 2025 年。我們將繼續執行我們的策略來發展經常性業務，將 Diamond action 的使用範圍擴大到汽車、工業和資料中心客戶以及我們的檢測和計量產品組合，並增加對我們新興軟體業務的訂閱。

We're pretty excited about what lays ahead with market forecasts, indicating secular growth in semiconductors for automotive, industrial and mobile applications and the new opportunities being created for AI at the edge node. Let me now turn it over to Jeff to provide further details on quarter results and first quarter '24 guidance.

我們對未來的市場預測感到非常興奮，這表明汽車、工業和行動應用的半導體將長期成長，並為邊緣節點的人工智慧創造新的機會。現在讓我將其轉交給傑夫，以提供有關季度業績和 24 年第一季指引的更多詳細資訊。

Yes.

是的。

Thanks, Luis. Before I walk through the Q4 results and Q1 guidance, please note that my comments that follow all refer to non-GAAP figures, information about the non-GAAP financial measures, including the GAAP to non-GAAP reconciliations and other disclosures are included in the accompanying earnings release and investor presentation, which are located on the investor page of our website.

謝謝，路易斯。在我詳細介紹第四季度的業績和第一季度的指導之前，請注意，我接下來的評論均指非公認會計原則數據，有關非公認會計原則財務指標的信息，包括公認會計原則與非公認會計原則的調節和其他揭露，均包含在隨附的收益發布和投資者介紹，位於我們網站的投資者頁面上。

Now turning to the Q4 financial results. Cohu delivered strong profitability on revenue of $137.2 million, which is above the midpoint of our guidance. Full year 2023, revenue was $636.3 million. Recurring revenue, which is largely consumable driven and more stable than systems revenue represented 54% of total revenue in Q4 and 49% of full year 2023 revenue. During the fourth quarter, one customer in the automotive market accounted for more than 10% of sales. And for full year 2023, one customer in the automotive market accounted for more than 10% of sales. Q4 gross margin was strong at 48.5%, about 250 basis points higher than guidance, driven by lower than forecasted manufacturing costs and coal use, resilient recurring business and differentiated products. Full year 2023 gross margin was 47.9%, which is 70 basis points higher year over year and sets a new annual record for Cohu. Operating expenses for Q4 were in line with guidance at $50 million. Fourth quarter non-GAAP operating income was 12.2% of revenue and adjusted EBITDA was 13%. Full year operating income was 16.2%, and adjusted EBITDA for 2023 was 17.9%. Fx loss in Q4 was $2.9 million, driven mainly by the U.S. dollar weakening against the euro and Swiss franc and a onetime currency exposure that will not repeat in future quarters.

現在轉向第四季的財務表現。Cohu 實現了強勁的盈利能力，收入為 1.372 億美元，高於我們指導的中位數。2023 年全年營收為 6.363 億美元。經常性收入主要由消耗品驅動，比系統收入更穩定，佔第四季總收入的 54%，佔 2023 年全年收入的 49%。第四季度，汽車市場的一位客戶佔銷售額的10%以上。2023 年全年，汽車市場的一個客戶佔銷售額的 10% 以上。第四季毛利率強勁，達 48.5%，比指導值高出約 250 個基點，這得益於低於預期的製造成本和煤炭使用量、有彈性的經常性業務和差異化產品。2023年全年毛利率為47.9%，較去年成長70個基點，創下Cohu的年度新紀錄。第四季的營運支出為 5,000 萬美元，符合預期。第四季非 GAAP 營業收入佔營收的 12.2%，調整後 EBITDA 為 13%。全年營業收入為 16.2%，2023 年調整後 EBITDA 為 17.9%。第四季的外匯損失為 290 萬美元，主要是因為美元兌歐元和瑞士法郎走軟，以及未來幾季不會重複出現的一次性貨幣風險。

The non-GAAP effective tax rate for Q4 was approximately 30% and higher than guidance due to discrete tax items and true ups flowing through the Q4 tax provision.

第四季的非公認會計準則有效稅率約為 30%，由於離散稅項和第四季度稅收撥備中的真實上漲，該稅率高於指導值。

Non-gaap effective tax rate for the full year 2023 was approximately 26% and non-GAAP EPS for the fourth quarter was $0.23 and full year 2023 EPS was $1.62.

2023 年全年非 GAAP 有效稅率約為 26%，第四季非 GAAP 每股盈餘為 0.23 美元，2023 年全年每股收益為 1.62 美元。

In summary, Q4 and full year 2023 gross margin and adjusted EBITDA were strong, exceeding the midterm financial targets at this level of revenue.

總而言之，第四季和 2023 年全年毛利率和調整後 EBITDA 表現強勁，超過了該收入水準的中期財務目標。

Moving to the balance sheet, cash and investments decreased by $52 million during Q4 to $336 million because we used cash of approximately $43 million to acquire EQT and approximately $13 million to repurchase 390,000 shares of common stock debt repayment in the fourth quarter totaled $1 million, and we ended Q4 with net cash of $6.17 per share. Capex in Q4 was $3.9 million with approximately $2 million related to construction of the new Philippines facility to support long-term growth prospects in our interface business.

轉向資產負債表，第四季現金和投資減少了5,200 萬美元，至3.36 億美元，因為我們使用了約4,300 萬美元的現金收購了EQT，並使用約1,300 萬美元回購了390,000 股普通股，第四季債務償還總額為100 萬美元，第四季結束時，我們每股淨現金為 6.17 美元。第四季的資本支出為 390 萬美元，其中約 200 萬美元與菲律賓新工廠的建設有關，以支持我們介面業務的長期成長前景。

Total CapEx for 2023, including the new building, was approximately $16 million. Overall, Cohu continues to maintain a strong balance sheet to support debt reduction, share repurchase program and investment opportunities like EQT to expand our served markets and technology portfolio in line with our growth strategy. Last week, we repaid the term loan B outstanding balance of $29.3 million. The term loan B was scheduled to mature in October of 2025, and the accelerated payment will increase net interest income by approximately 200,000 per quarter at current interest rates.

2023 年的總資本支出（包括新建築）約為 1,600 萬美元。總體而言，Cohu 繼續保持強勁的資產負債表，以支持債務削減、股票回購計劃和 EQT 等投資機會，以根據我們的成長策略擴大我們服務的市場和技術組合。上週，我們償還了 2,930 萬美元的定期貸款 B 未償餘額。定期貸款B計劃於2025年10月到期，以當前利率計算，加速還款將使每季淨利息收入增加約20萬。

Now moving to our Q1 outlook. We're guiding Q1 revenue to be in the range of $107 million plus or minus $6 million, reflecting continued weakness across end markets and low test cell utilization at customers' production facilities. Q1 gross margin is forecasted to be approximately 45% better than the financial target model at this level of revenue due in part to coal use differentiated products in our stable high margin recurring business, which adds resilience to profitability and provides consistent cash flow through the industry cycles.

現在轉向我們對第一季的展望。我們預計第一季營收在 1.07 億美元上下 600 萬美元之間，反映出終端市場持續疲軟以及客戶生產設施測試單元利用率較低。在此收入水準下，第一季毛利率預計將比財務目標模型高出約45%，部分原因是我們穩定的高利潤經常性業務中的煤炭使用差異化產品，這增加了盈利能力的彈性，並為整個行業提供了一致的現金流循環。

Operating expenses for Q1 are projected to increase $1 million quarter over quarter to approximately $51 million due to the annual reset of payroll taxes and other labor benefits. We continue to exercise tight control over operating expenses and in light of subdued customer demand for the first half of 2024, we've taken action to reduce operating expenses without sacrificing critical new product investments while navigating through the trough of this cycle.

由於工資稅和其他勞工福利的年度重置，第一季的營運支出預計將環比增加 100 萬美元，達到約 5,100 萬美元。我們繼續嚴格控制營運費用，鑑於 2024 年上半年客戶需求低迷，我們已採取行動減少營運費用，同時不犧牲關鍵的新產品投資，同時度過本週期的低谷。

As a result, we're modeling operating expenses to average approximately $48.5 million per quarter in Q2 through Q4, we're projecting Q1 interest expense to be approximately 700,000 and offset by interest income of approximately $2 million. At current interest rates, we expect Q1 adjusted EBITDA to be approximately 2% for Q1 and full year 2024 forecasted non-GAAP tax rate is approximately 23%. The diluted share count for Q1 is expected to be approximately 47.9 million shares and that concludes our prepared remarks, and now we'll open the call to questions.

因此，我們將第二季至第四季的平均營運支出建模為每季約 4,850 萬美元，我們預計第一季的利息支出約為 70 萬美元，並被約 200 萬美元的利息收入所抵銷。以目前利率，我們預計第一季調整後 EBITDA 約為 2%，2024 年全年預測非 GAAP 稅率約為 23%。第一季的稀釋後股票數量預計約為 4790 萬股，我們準備好的發言到此結束，現在我們將開始提問。

(Operator Instructions) Ethan Widell, B. Riley Securities.

（操作員指令）Ethan Widell，B. Riley 證券。

Hi there. This is Ethan Lightower calling in for Craig Ellis. Thanks for taking my questions. Starting, I was wondering, as you look into the back half of the year, what gives and takes. Are you seeing it sounds like equipment spend may be back half-weighted and also how do you see the relative performance between systems and recurring? Thanks.

你好呀。我是伊森‧萊托沃 (Ethan Lightower) 呼叫克雷格‧艾利斯 (Craig Ellis)。感謝您回答我的問題。首先，我想知道，當你回顧今年下半年時，會得到什麼和得到什麼。您是否認為設備支出可能會減半？您如何看待系統和經常性支出之間的相對表現？謝謝。

Hi, this is Luis, at this point, we rely on the information we're getting from our customers that are generally expecting a recovery towards the back half of the year. And this is predominantly automotive and industrial customers are recovering. If you look at the mobile market, we've seen largely a correction already in the inventories in the mobile space, particularly in the Android.

大家好，我是路易斯，目前，我們依賴從客戶那裡獲得的信息，這些客戶普遍預計下半年會出現復甦。這主要是汽車和工業客戶正在復甦。如果你看看行動市場，我們會發現行動領域的庫存已經大幅調整，特別是 Android 領域。

And we have seen some some start of order pattern already again into the into the mobile mobile device market. So you put the two things together and the expectation here is, again, a recovery pattern on the second half of the year. I know, Jeff, you can add some on the depreciation of revenue.

我們已經看到一些訂單模式的開始已經再次進入行動行動裝置市場。所以你把這兩件事放在一起，這裡的預期再次是下半年的復甦模式。我知道，傑夫，你可以添加一些收入折舊。

Yes. So based on that trajectory, systems revenue would come in somewhere around probably 45% with recurring revenue being 55%, somewhere somewhere in that ratio.

是的。因此，根據該軌跡，系統收入可能約為 45%，經常性收入為 55%，處於該比率的某個位置。

Okay. Thank you. That's helpful. And then on we seem to be seeing some green shoots in the Android ecosystem, as mentioned up. Can you speak to any read-throughs there for utilization or demand for mobile utilization level in mobile is going to second?

好的。謝謝。這很有幫助。正如前面提到的，我們似乎在 Android 生態系統中看到了一些萌芽。您能否談談對行動裝置使用率或行動裝置使用率需求的任何解讀？

I think it's about 70%, 76% across the board across a collection of mobile customers. So that's not only Android, but all of them.

我認為對於行動客戶來說，這一比例大約是 70%、76%。所以這不僅是 Android 的問題，而是所有的問題。

Okay, got it. Thank you.

好，知道了。謝謝。

Brian Chin, Stifel.

布萊恩·欽，斯蒂菲爾。

What's the Thank you. Thanks for taking my questions on maybe first question. Yes, as you said, you kind of monitor against sort of your customer indications on the back half of the year for some recovery, there are particular utilization threshold that you'll be monitoring in terms of improvement and a crossover point to maybe on it will solidify that view that the pickup will occur and towards second half?

什麼是謝謝。感謝您就第一個問題回答我的問題。是的，正如您所說，您會在下半年監控客戶的某種跡像以尋求一些恢復，您將在改進和交叉點方面監控特定的利用率閾值會鞏固這種觀點，即下半年將會出現回升嗎？

Yes. If that was a question there, Brian? Yes, we will be monitoring utilization across some because I commented here, utilization is down a couple of points to 71% at the end of Q4, and it was actually pretty stable at that 71% throughout Q4. So we had three months and a fourth in the fourth quarter, quite honestly, January, which are I can speak to here in the call was also 71%. So we've got four quarters, four months in a row now at 71%. We've got to monitor data utilization increase. It is pockets of strength and pockets of weakness in it. I mentioned mobile a second ago at about 76% consumer, is it 69% computing at 68 and auto industrial, despite coming down two points quarter over quarter ended Q4 at 81%.

是的。如果這是一個問題，布萊恩？是的，我們將監控一些利用率，因為我在這裡評論過，第四季末利用率下降了幾個百分點，降至 71%，整個第四季實際上相當穩定在 71%。因此，我們有三個月的時間，第四季的第四個月，老實說，一月份，我可以在電話會議中談到，這也是 71%。所以我們現在已經連續四個季度、四個月達到 71%。我們必須監控數據利用率的成長。它既有優勢，也有弱點。我剛才提到行動裝置在消費者中的佔比約為 76%，在計算領域的佔比為 68%，而汽車工業的佔比則較第四季下降了 2 個百分點至 81%。

As we always say, utilization of about 80% is when you see capacity buys and we got to see across markets, not not only a 80%, but more of a trend up towards that 80%. So climbing from 71% to 80% mark and the rate of climb also will determine how fast we get to that to that turning point, right. So we've seen in the past on the order of 2 to 400 basis points quarter-over-quarter improvement in utilization. That's reasonably what you expect on a typical recovery, but.

正如我們常說的，大約 80% 的利用率是當你看到產能購買時的情況，我們看到整個市場不僅是 80%，而且更多的是朝著 80% 的趨勢上升。因此，從 71% 上升到 80% 的標記以及上升速度也將決定我們到達那個轉折點的速度，對吧。因此，我們過去看到利用率環比提高了 2 到 400 個基點。這是您對典型恢復的合理預期，但是。

Okay, got it. And then in relation to that sort of service systems question earlier on where you see service revenue analysis system revenue going in Q1 on, does that feel like a pretty good floor in terms of the service revenue?

好，知道了。然後，關於之前提到的那種服務系統問題，您在第一季看到服務收入分析系統的收入在哪裡，就服務收入而言，這是否感覺是一個相當不錯的下限？

And then on the equipment side, I'd imagine given the protracted downturn in areas beyond automotive and industrial, it's probably hard to fathom system revenue going down more in those markets. And you also feel that automotive and industrial is pretty much at a floor even on that system side revenue in Q1 and kind of any thoughts on.

然後在設備方面，我想考慮到汽車和工業以外的長期低迷，可能很難想像這些市場的系統收入會進一步下降。您還認為，即使在第一季的系統側收入以及任何想法方面，汽車和工業也幾乎處於底部。

Yes, sequential and then into Q2. Yes. I mean, if you look at them, if you look at systems revenues, as we've talked here about total systems revenue came in in the quarter at about 46% of total, right. But if you start looking at the start looking at Q1, for example, not Q2 yet. We're still looking at Q1 our order pattern in Q4, which dictates a little bit of what's happened in Q1 by market segment. We should see reasonable stability in the automotive market sort of automotive and industrial combined should see a reasonable stability quarter over quarter across those two markets. What is down significantly at least from an order pattern in Q4 is the consumer market that came down came down quite a bit on driving sort of that typical typical seasonality. Obviously, we're in a down cycle, but you've got to layer out the seasonality on top of that. And that's typically the consumer market order patterns in the fourth quarter. And that really hurts going into Q1 as we go into second quarter, it's a little early to call, but I would say more of the same pretty much more of the same that we're seeing today or that we saw through fourth quarter orders, it got maybe by slashing the closedown and gross margins on it, definitely much higher than I expect, given where the 1Q revenue is going.

是的，依次進行，然後進入第二季。是的。我的意思是，如果你看看它們，如果你看看系統收入，正如我們在這裡討論的那樣，本季系統總收入約佔總收入的 46%，對吧。但如果你開始看第一季度，例如，還不是第二季度。我們仍在關注第四季度第一季的訂單模式，這決定了第一季按細分市場發生的一些情況。我們應該看到汽車市場的合理穩定，汽車和工業市場的結合應該會看到這兩個市場的季度與季度之間的合理穩定。至少與第四季的訂單模式相比，顯著下降的是消費市場，在典型的季節性推動下，消費市場大幅下降。顯然，我們正處於下行週期，但除此之外你還必須考慮季節性因素。這就是第四季消費市場的典型訂單模式。當我們進入第二季度時，這確實對第一季造成了傷害，現在下結論還為時過早，但我想說的是，與我們今天看到的或我們在第四季度訂單中看到的更多相同，考慮到第一季的收入走向，它可能是通過大幅削減關閉和毛利率來實現的，這絕對比我預期的要高得多。

Sounds like maybe you're you've flushed through some of that higher-cost inventory. You had the intake in periods of tighter supply of is the other factor here to think about it sort of that mix of higher service relative to system.

聽起來也許你已經沖掉了一些成本較高的庫存。您在供應緊張時期攝取的量是這裡要考慮的另一個因素，即相對於系統的更高服務的組合。

And that's that's really the main driver, Brian, is the mix between the recurring and the system revenue and and so ink in Q1 it's more skewed towards the recurring revenue than Q4 was closer to call it about 60% recurring, 40% systems. And so that's that's very helpful. On the margin side now at this point, we reach in the systems revenue, you reach a point where the margins degrading because of the fixed cost infrastructure for primarily handler systems. So that's a bit of a drag, which which is why the quarter-over-quarter gross margin is is coming down a couple of hundred basis points, but it is supported by the recurring revenue.

這就是真正的主要驅動力，布萊恩，是經常性收入和系統收入之間的混合，因此第一季的墨水比第四季度更傾向於經常性收入，更接近稱之為約60% 經常性收入，40% 系統。這非常有幫助。現在在利潤方面，我們達到了系統收入，由於主要處理系統的固定成本基礎設施，您達到了利潤下降的地步。因此，這有點拖累，這就是為什麼季度毛利率下降了幾百個基點，但它得到了經常性收入的支撐。

Okay, great. Thank you.

好的，太好了。謝謝。

(Operator Instructions) Robert Mertens, TD Cowen.

（操作員說明）Robert Mertens，TD Cowen。

Hi, this is Robert Mertens on for Krish. Thank you for taking my questions. I guess just the first one in terms of looking at the puts and takes of the utilization rates, you are good about sort of providing this throughout the year on a quarterly basis and then this quarter, sort of where each subsegment has come in.

大家好，我是克里斯的羅伯特‧默滕斯。感謝您回答我的問題。我想，就查看利用率的看跌期權和期權而言，您很擅長在全年中按季度提供此信息，然後在本季度提供每個細分市場的信息。

Is there any sort of forecasting that you're doing in terms of the categories, maybe mobile is one that picks up more in the second half of the year. If you're starting to see some motto and industrial, it declined a little bit since that's the highest utilization among your subsegments. Just sort of any color there would be helpful. Thanks.

您是否對類別進行了任何預測，也許行動類別在今年下半年會成長更多。如果您開始看到一些座右銘和工業，它會略有下降，因為這是您的子細分中利用率最高的。任何顏色都會有幫助。謝謝。

Hi, Robert. We don't typically forecast utilization and we for forecast markets and customers, but not utilization. But if I take it for, I think our forecast by markets and by segments, I would say, and there's probably a little bit more to give on the downside in the auto and industrial segment and a little bit more to gain in pickup here sequentially in the mobile segment. I think we're starting to see a little bit of signs of life in the mobile market. And at the same time, a lot of caution by our large auto and industrial semiconductor customers, he can probably attest yourself from their recent earnings release. So that's the that's supposedly going to dictate the pattern also in utilization once we've finished Warner.

嗨，羅伯特。我們通常不預測利用率，我們預測市場和客戶，但不預測利用率。但如果我接受它，我認為我們對市場和細分市場的預測，我會說，汽車和工業領域的下行趨勢可能會增加，而在此方面的回升也會有更多的成長在移動領域。我認為我們開始看到行動市場的一些復甦跡象。同時，我們的大型汽車和工業半導體客戶非常謹慎，他可能可以從他們最近發布的財報中證明自己。因此，一旦我們完成華納，這將決定該模式的使用。

Great. Thanks. That's helpful.

偉大的。謝謝。這很有幫助。

I'm showing no further questions at this time. So with that, I'll hand the call back over to Chief Financial Officer, Jeff Jones, for any closing remarks.

我目前沒有提出任何進一步的問題。因此，我將把電話轉回給財務長傑夫瓊斯（Jeff Jones），讓其結束語。

Yes, I just want to say thank you to everybody for joining today's call, and we look forward to speaking with you soon picker.

是的，我只想對大家參加今天的電話會議表示感謝，我們期待很快與您交談。

Thank you, and thank you all for participating. This concludes today's program. You may now disconnect.

謝謝大家，也謝謝大家的參與。今天的節目到此結束。您現在可以斷開連線。