Diodes Inc (DIOD) 2017 Q1 法說會逐字稿

Good afternoon, and welcome to Diodes Incorporated's First Quarter 2017 Financial Results Conference Call. (Operator Instructions) As a reminder, this conference call is being recorded today, Tuesday, May 09, 2017.

下午好，歡迎參加 Diodes 公司 2017 年第一季財務業績電話會議。（操作員說明）謹此提醒，本次電話會議於今天（2017 年 5 月 9 日星期二）錄製。

I would now like to turn the call over to Leanne Sievers of Shelton Group, Investor Relations. Leanne, please go ahead.

我現在想將電話轉給謝爾頓集團投資者關係部的 Leanne Sievers。莉安，請繼續。

Good afternoon, and welcome to Diodes' First Quarter 2017 Financial Results Conference Call. I'm Leanne Sievers, President of Shelton Group, Diodes' Investor Relations firm.

下午好，歡迎參加 Diodes 2017 年第一季財務業績電話會議。我是 Leanne Sievers，Diodes 投資人關係公司 Shelton Group 的總裁。

Joining us today are Diodes President and CEO, Dr. Keh-Shew Lu; Chief Financial Officer, Rick White; Senior Vice President of Sales and Marketing, Mark King; and Director of Investor Relations, Laura Mehrl.

今天加入我們的是 Diodes 總裁兼執行長 Keh-Shew Lu 博士；首席財務官，里克懷特；銷售與行銷資深副總裁 Mark King；和投資者關係總監 Laura Mehrl。

Before I turn the call over to Dr. Lu, I'd like to remind our listeners that the results today are preliminary as they are subject to the company finalizing its closing procedures and customary quarterly review by the company's independent registered public accounting firm. As such, these results are subject to revision until the company files its Form 10-K for its first quarter year 2017.

在我把電話轉給盧博士之前，我想提醒我們的聽眾，今天的結果是初步的，因為它們取決於公司最終確定的結帳程序以及公司獨立註冊會計師事務所的慣例季度審查。因此，在公司提交 2017 年第一季的 10-K 表格之前，這些結果可能會進行修訂。

In addition, management's prepared remarks contain forward-looking statements which are subject to risk and uncertainties, and management may make additional forward-looking statements in response to your questions. Therefore, the company claims the protection of the safe harbor for forward-looking statements that is contained in the Private Securities Litigation Reform Act of 1995. Actual results may differ from those discussed today, and therefore we refer you to a more detailed discussion of the risks and uncertainties in the company's filings with the Securities and Exchange Commission.

此外，管理層準備的言論包含前瞻性陳述，這些陳述存在風險和不確定性，管理層可能會針對您的問題做出額外的前瞻性陳述。因此，該公司聲稱受到 1995 年《私人證券訴訟改革法案》中包含的前瞻性陳述的安全港保護。實際結果可能與今天討論的結果有所不同，因此我們建議您參閱該公司向美國證券交易委員會提交的文件中有關風險和不確定性的更詳細討論。

In addition, any projections as to the company's future performance represent management's estimates as of today, May 09, 2017. Diodes assumes no obligation to update these projections in the future as market conditions may or may not change.

此外，對公司未來業績的任何預測均代表管理層截至今天（2017 年 5 月 9 日）的估計。由於市場狀況可能會或可能不會改變，Diodes 不承擔未來更新這些預測的義務。

Additionally, the company's press release and management statements during this conference call will include discussions of certain measures and financial information in GAAP and non-GAAP terms. Included in the company's press release are definitions and reconciliations of GAAP to non-GAAP items, which provide additional details.

此外，該公司在本次電話會議期間的新聞稿和管理層聲明將包括以公認會計原則和非公認會計原則術語討論某些措施和財務資訊。該公司的新聞稿中包括 GAAP 與非 GAAP 項目的定義和調節，其中提供了更多詳細資訊。

Also, throughout the company's press release and management's statements during this conference call, we refer to net income attributable to common stockholders as GAAP net income. For those of you unable to listen to the entire call at this time, a recording will be available via webcast for 60 days in the Investor Relations section of Diodes' website at www.diodes.com.

此外，在本次電話會議期間公司的新聞稿和管理層聲明中，我們將歸屬於普通股股東的淨利潤稱為 GAAP 淨利潤。對於目前無法收聽整個電話會議的人士，可在 Diodes 網站 www.diodes.com 的投資者關係部分透過網路廣播提供為期 60 天的錄音。

And now, I'll turn the call over to Diodes' President and CEO, Dr. Keh-Shew Lu. Dr. Lu, please go ahead.

現在，我將把電話轉給 Diodes 總裁兼執行長 Keh-Shew Lu 博士。盧醫生，請講。

Thank you, Leanne. Welcome everyone, and thank you for joining us today. Revenue in the first quarter was at the high end of the guidance, increasing almost 2% sequentially as compared to typical seasonality of down about 5%. Sales in Europe were particularly strong with a [resurgence] in the revenue from the industrial market, combined with strengthening demand in North America. Additionally, our automotive revenue continued to grow from the record level achieved last year, resulting in growth of almost 25% over the prior year quarter. Also, notable in the quarter, gross margin exceeded our guidance and has surpassed 31%. The improvement was due to increased loading at our manufacturing facilities as a result of the stronger business environment as well as better pricing; in particular for [analog] products acquired from Pericom.

謝謝你，莉安。歡迎大家，感謝您今天加入我們。第一季的營收處於指引的高端，季增近 2%，而典型季節性下降約 5%。由於工業市場收入的[復甦]以及北美需求的增強，歐洲的銷售尤其強勁。此外，我們的汽車收入在去年創紀錄的基礎上持續成長，比去年同期成長近 25%。此外，值得注意的是，本季毛利率超出了我們的指導，超過了 31%。這項改善是由於商業環境的改善以及更好的定價而導致我們的製造工廠的負荷增加；特別是從 Pericom 收購的[模擬]產品。

Our KFAB facility is up and running with stable monthly output attained in March. When combined with lower SG&A and R&D expense as a percent of the revenue, we delivered GAAP profitability of $0.02, despite the KFAB closure accruals. Excluding the accruals, non-GAAP earning per share was $0.14. Further, our strong cash generation enabled us to pay down an additional $11 million in long-term debts.

我們的 KFAB 工廠已投入運行，3 月份月產量穩定。加上較低的 SG&A 和研發費用佔收入的百分比，儘管 KFAB 關閉了應計費用，但我們的 GAAP 盈利能力仍為 0.02 美元。不計應計費用，非 GAAP 每股收益為 0.14 美元。此外，我們強大的現金產生能力使我們能夠額外償還 1,100 萬美元的長期債務。

As we look to the second quarter, our business as well as the overall market are showing signs of continued strength. As a result, we expect to deliver 10% sequential growth, 33% non-GAAP gross margin and 22.3% of revenue for R&D plus SG&A, all at the midpoints.

展望第二季度，我們的業務以及整個市場都顯示出持續強勁的跡象。因此，我們預計將實現 10% 的環比成長、33% 的非 GAAP 毛利率和 22.3% 的研發收入加上 SG&A，均處於中點。

This strong start to the first half of the year brings us within closer reach of our target operating model of 35% gross margin, and 20% R&D plus SG&A. With a broadened product portfolio and an expanded sales channel following our integration of Pericom, we are well positioned to fully capitalize on those improving market conditions.

今年上半年的強勁開局使我們更接近實現 35% 毛利率、20% 研發加銷售及行政管理 (SG&A) 的目標營運模式。整合 Pericom 後，我們的產品組合更加豐富，銷售管道也更加廣泛，我們已做好充分準備，充分利用不斷改善的市場狀況。

With that, I will now turn the call over to Rick to discuss our first quarter financial results as well as second quarter guidance in more detail.

現在，我將把電話轉給里克，更詳細地討論我們第一季的財務業績以及第二季的指導。

Thanks, Dr. Lu, and good afternoon, everyone. Revenue for the first quarter 2017 was $236.3 million compared to $232.1 million in the fourth quarter 2016 and $222.7 million in the first quarter 2016. Revenue for the quarter was up 1.8% sequentially and reflects better than expected seasonality, due primarily to strength in Europe and North America. GAAP gross profit for the first quarter was $73.9 million or 31.3% of revenue, including $0.5 million related to KFAB closure accruals. Non-GAAP gross profit was $74.4 million, or 31.5% of revenue, excluding the accrual. This compares to fourth quarter 2016 GAAP gross profit of $67.3 million or 29% of revenue, and first quarter 2016 of $64.2 million or 28.8% of revenue. The increase in gross profit margin was due primarily to improved utilization and pricing.

謝謝盧博士，大家下午好。2017 年第一季的營收為 2.363 億美元，而 2016 年第四季的營收為 2.321 億美元，2016 年第一季的營收為 2.227 億美元。該季度營收季增 1.8%，反映了好於預期的季節性，這主要是由於歐洲和北美的強勁表現。第一季 GAAP 毛利為 7,390 萬美元，佔營收的 31.3%，其中包括與 KFAB 關閉應計費用相關的 50 萬美元。非 GAAP 毛利為 7,440 萬美元，佔營收的 31.5%（不含應計費用）。相較之下，2016 年第四季 GAAP 毛利為 6,730 萬美元，佔營收的 29%，2016 年第一季的 GAAP 毛利為 6,420 萬美元，佔營收的 28.8%。毛利率的增加主要是由於利用率和定價的提高。

GAAP operating expenses were $64.6 million or 27.3% of revenue and $57.3 million or 24.2% of revenue on a non-GAAP basis, which excludes $4.8 million of amortization of acquisition-related intangible asset expenses, $2.3 million of KFAB closure accruals and $200,000 of retention costs. This compares to GAAP operating expenses of $61.9 million or 26.7% of revenue last quarter and $62.8 million or 28.2% of revenue in the first quarter 2016.

GAAP 營運費用為6,460 萬美元，佔收入的27.3%；以非GAAP 計算，營運費用為5,730 萬美元，佔營收的24.2%，其中不包括480 萬美元的收購相關無形資產攤銷費用、230 萬美元的KFAB 關閉應計費用和200,000 美元的保留費用成本。相較之下，上一季的 GAAP 營運費用為 6,190 萬美元，佔營收的 26.7%；2016 年第一季的 GAAP 營運費用為 6,280 萬美元，佔營收的 28.2%。

Looking specifically at selling, general and administrative expenses for the first quarter, SG&A was approximately $39.7 million or 16.8% of revenue compared to $39.1 million or 16.8% of revenue last quarter, and $39.5 million or 17.7% of revenue for the first quarter 2016.

具體來看第一季的銷售、一般和管理費用，SG&A 約為3,970 萬美元，佔營收的16.8%，而上一季為3,910 萬美元，佔營收的16.8%，2016 年第一季為3,950 萬美元，佔收入的17.7%。

Investment in research and development for the first quarter was approximately $18 million or 7.6% of revenue compared to $17.7 million or 7.6% of revenue last quarter, and $18.1 million or 8.1% of revenue in the first quarter 2016.

第一季的研發投資約為1,800 萬美元，佔營收的7.6%，而上一季的研發投資為1,770 萬美元，佔營收的7.6%；2016 年第一季的研發投資為1,810 萬美元，佔收入的8.1%。

Combined, SG&A plus R&D was $57.7 million or 24.4% of revenue compared to $56.8 million or 24.5% revenue in the fourth quarter 2016 and $57.6 million or 25.9% revenue in the first quarter 2016.

SG&A 加上研發合計為 5,770 萬美元，佔營收的 24.4%，而 2016 年第四季為 5,680 萬美元，佔營收的 24.5%，2016 年第一季為 5,760 萬美元，佔營收的 25.9%。

Total other expense amounted to approximately $7.3 million for the quarter, including $3.5 million in interest expense and $3.8 million negative currency translation as a result of the stronger Taiwan dollar. Income before taxes and noncontrolling interest in the first quarter 2017 amounted to $2.1 million compared to $2.7 million last quarter and a loss of $2 million in the first quarter of 2016.

本季其他費用總額約為 730 萬美元，其中包括 350 萬美元的利息費用和因新台幣走強而導致的 380 萬美元的負貨幣換算費用。2017 年第一季稅前及非控股權益前利潤為 210 萬美元，上一季為 270 萬美元，2016 年第一季虧損 200 萬美元。

Turning to income taxes. Our effective income tax rate for the first quarter 2017 was approximately 26.6%. GAAP net income for the first quarter 2017 was $1.2 million, or $0.02 per diluted share compared to GAAP net income of $1.3 million or $0.03 per diluted share last quarter. And a GAAP net loss of $1.7 million or $0.04 loss per share during the first quarter 2016. The share count, used to compute GAAP diluted EPS for the first quarter 2017 was 49.7 million shares.

轉向所得稅。2017 年第一季我們的有效所得稅稅率約為 26.6%。2017 年第一季 GAAP 淨利潤為 120 萬美元，即稀釋後每股 0.02 美元，而上一季 GAAP 淨利潤為 130 萬美元，即稀釋後每股 0.03 美元。2016 年第一季 GAAP 淨虧損為 170 萬美元，即每股虧損 0.04 美元。用於計算 2017 年第一季 GAAP 攤薄每股收益的股票數量為 4,970 萬股。

First quarter 2017 non-GAAP adjusted net income was $7 million or $0.14 per diluted share, which excluded, net of tax, $3.9 million of noncash acquisition-related intangible asset amortization cost and $1.8 million of restructuring cost related to KFAB closure accruals. This compares to non-GAAP adjusted net incomes of $7.7 million or $0.15 per diluted share last quarter and $5.9 million or $0.12 per diluted share in the first quarter 2016.

2017 年第一季非GAAP 調整後淨利為700 萬美元，即稀釋後每股收益0.14 美元，其中不包括稅後390 萬美元的非現金收購相關無形資產攤銷成本以及與KFAB 關閉應計費用相關的180 萬美元重組成本。相比之下，上季非 GAAP 調整後淨利潤為 770 萬美元，即稀釋後每股收益 0.15 美元，2016 年第一季調整後淨利為 590 萬美元，即稀釋後每股收益 0.12 美元。

We have included in our earnings release a reconciliation of GAAP net income to non-GAAP net income, which provides additional details. Included in the first quarter of 2017, GAAP net income and non-GAAP adjusted net income was approximately $2.7 million net of tax, noncash, share-based compensation expense. Exuding share-based compensation expense both GAAP EPS and non-GAAP adjusted diluted EPS would have increased by an additional $0.05 per diluted share in the first quarter. Cash flow generated from operations was $45.6 million for the first quarter of 2017. Free cash flow was $26.5 million for the first quarter, which included $19.1 million of capital expenditures. Net cash flow for the quarter was a positive $17.3 million, including the paydown of approximately $11 million of long-term debt.

我們在收益報告中納入了 GAAP 淨利潤與非 GAAP 淨利潤的調整表，其中提供了更多詳細資訊。計入 2017 年第一季的 GAAP 淨利和非 GAAP 調整後淨利潤約為 270 萬美元（扣除稅項、非現金、股權激勵費用）。如果不計入股權激勵費用，第一季 GAAP 每股收益和非 GAAP 調整後稀釋每股收益將額外增加 0.05 美元。2017 年第一季營運產生的現金流為 4,560 萬美元。第一季自由現金流為 2,650 萬美元，其中包括 1,910 萬美元的資本支出。該季度的淨現金流量為正 1,730 萬美元，其中包括償還約 1,100 萬美元的長期債務。

Turning to the balance sheet. At the end of the first quarter, cash and cash equivalents totaled approximately $265 million and short-term investments totaled approximately $33 million. Working capital was approximately $551 million.

轉向資產負債表。截至第一季末，現金及現金等價物總額約2.65億美元，短期投資總額約3,300萬美元。營運資金約 5.51 億美元。

At the end of the first quarter, inventory decreased by approximately $2.2 million from the end of the fourth quarter 2016 to approximately $191 million. The decrease in inventory reflects a decrease in finished goods by $14.3 million and increases in work-in-process of $5.9 million and raw materials of $6.2 million. Inventory days are 107 in the quarter compared to 111 days last quarter.

截至第一季末，庫存較2016年第四季末減少約220萬美元，至約1.91億美元。庫存減少反映出製成品減少了 1,430 萬美元，在製品增加了 590 萬美元，原料增加了 620 萬美元。本季庫存天數為 107 天，而上季為 111 天。

At the end of the first quarter, accounts receivable was approximately $205 million, a decrease of $12.2 million from last quarter. AR days were 80, compared to 90 last quarter. Our long-term debt, net of the current portion, totaled approximately $400 million.

一季末，應收帳款約2.05億美元，較上季減少1,220萬美元。AR 天數為 80 天，而上季為 90 天。扣除目前部分後，我們的長期債務總計約為 4 億美元。

Capital expenditures again for the first quarter were $19.1 million or 8.1% of revenue, which was within our 5% to 9% revenue model. Depreciation and amortization expense for the first quarter was $23.7 million.

第一季的資本支出再次達到 1,910 萬美元，佔營收的 8.1%，符合我們 5% 至 9% 的收入模型。第一季的折舊和攤銷費用為 2,370 萬美元。

Now, turning to our outlook. For the second quarter of 2017, we expect continued growth in revenue with further improvement in gross margin and profitability. More specifically, revenue is expected to grow to a range of between $250 million and $270 million, or up 5.8% to 14.3% sequentially. We expect GAAP gross margin to be 32.5% plus or minus 1%, including approximately $1 million of KFAB closure-related accruals. Excluding these accruals, we expect non-GAAP gross margin to be approximately 33%. Non-GAAP operating expenses, which are GAAP operating expenses adjusted for KFAB closure costs, retention costs and amortization of acquisition-related intangible assets are expected to be approximately 22.3% of revenue, plus or minus 1%. We expect net interest expense to be approximately $3.3 million and our income tax rate to be 26.5%, plus or minus 3%. Shares used to calculate diluted EPS for the second quarter are anticipated to be approximately 50 million. Please note that the purchase accounting adjustments for Pericom and previous acquisitions of $3.8 million, after tax, and KFAB closure accruals of $800,000, after-tax, are not included in these non-GAAP estimates.

現在，轉向我們的展望。2017年第二季度，我們預計營收將持續成長，毛利率和獲利能力將進一步改善。更具體地說，營收預計將成長至 2.5 億美元至 2.7 億美元之間，即比上一季成長 5.8% 至 14.3%。我們預計 GAAP 毛利率為 32.5% 正負 1%，其中包括與 KFAB 關閉相關的約 100 萬美元的應計費用。排除這些應計費用，我們預計非 GAAP 毛利率約為 33%。非 GAAP 營運費用（根據 KFAB 關閉成本、保留成本和收購相關無形資產攤銷調整後的 GAAP 營運費用）預計約為收入的 22.3%，上下浮動 1%。我們預計淨利息支出約為 330 萬美元，所得稅率為 26.5%（上下浮動 3%）。用於計算第二季攤薄每股收益的股票預計約為5,000萬股。請注意，Pericom 的收購會計調整和先前 380 萬美元的稅後收購以及 KFAB 關閉應計稅後 80 萬美元並未包含在這些非 GAAP 估算中。

With that said, I will now turn the call over to Mark King.

話雖如此，我現在將把電話轉給馬克金。

Thank you, Rick, and good afternoon. First quarter revenue was up 1.8% sequentially and better than typical seasonality, driven by strong sales in North America and Europe in the automotive and industrial segments as well as solid growth in the communications market in Asia.

謝謝你，瑞克，下午好。第一季營收季增 1.8%，優於典型的季節性成長，這得益於北美和歐洲汽車和工業領域的強勁銷售以及亞洲通訊市場的穩健成長。

Globally, OEM sales were down 5.5% while distributor POP was up 6.2%, as channel rebuilt inventory in anticipation of strong Q2 demand. Europe and North America both had record POS quarters, but overall POS was down 8% after a stronger-than-expected Q4 in Asia. Distributor inventory was flat in the first quarter.

全球範圍內，OEM 銷售額下降 5.5%，而分銷商 POP 銷售額增長 6.2%，原因是通路因預期第二季需求強勁而重建庫存。歐洲和北美的 POS 季度均創歷史新高，但在亞洲第四季強於預期之後，整體 POS 下降了 8%。第一季經銷商庫存持平。

Customer activity and design activity once again remains strong across all regions. We continue to penetrate our key customer base with an expanded sales footprint and broader product portfolio with significant customer synergy and cross-selling opportunities for the Pericom products. We set revenue records in the quarter on timing, protection, IntelliFET and CMOS LDOs, driven by recent design wins on new products. In terms of global sales, Asia represented 79% of revenue; Europe, 12%; and North America, 9%. From an end market perspective, consumer represented 27% of revenue; communications, 26%; computing, 19%; industrial, 21%; and automotive was 7%.

所有地區的客戶活動和設計活動再次保持強勁。我們繼續透過擴大銷售範圍和更廣泛的產品組合來滲透我們的主要客戶群，並為 Pericom 產品帶來顯著的客戶協同效應和交叉銷售機會。在最近新產品設計勝利的推動下，我們在本季在定時、保護、IntelliFET 和 CMOS LDO 方面創下了營收紀錄。就全球銷售額而言，亞洲佔收入的 79%；歐洲，12%；北美為 9%。從終端市場的角度來看，消費者佔收入的27%；通訊，26%；計算機，19%；工業，21%；汽車業為 7%。

Let me now provide more detail within each of our end markets. For the consumer market, we released a family of new low dropout voltage regulators that combine extremely low quiescent current with an exceptionally small package to provide market-leading LDO devices for the growing Internet of Things space. These devices were designed specifically for wearables or other highly space-constrained battery-operated consumer products such as smart watches or activity monitors. One interesting emerging application in this space is what is known as asset trackers, which are miniature devices that can be attached to key rings, cell phones or other portable consumer goods to provide tracking capability for locating an item if lost or misplaced. We are working with several companies on innovative products for this emerging market, with the design wins across our logic, audio and LDO devices.

現在讓我提供我們每個終端市場的更多細節。針對消費市場，我們發布了一系列新型低壓差穩壓器，將極低靜態電流與超小型封裝相結合，為不斷發展的物聯網領域提供市場領先的 LDO 裝置。這些設備專為穿戴式裝置或其他空間高度受限的電池供電消費產品（例如智慧手錶或活動監視器）而設計。該領域一個有趣的新興應用是所謂的資產追蹤器，它是一種微型設備，可以連接到鑰匙圈、手機或其他便攜式消費品上，以提供追蹤功能，以便在丟失或放錯地方時找到物品。我們正在與多家公司合作，為這個新興市場開發創新產品，我們的邏輯、音訊和 LDO 設備的設計取得了成功。

Also new for Q1 in the consumer space were linear LED drivers for decorative and strip lighting as well as rectifier bridges and trenched Schottky parts for LED TVs.

第一季消費領域的新產品還包括用於裝飾和條狀照明的線性 LED 驅動器以及用於 LED 電視的整流橋和溝槽肖特基部件。

In the communications market, we are seeing increased adoption of our hall effect sensors and smartphone covers. We released a new high-sensitivity dual output unipolar hall switch this quarter, which further expands our presence in this space. We also released several additions to our AC to DC power controller product line, including a constant current, constant voltage power converter that supports the Quick Charge 2.0 protocol as well as a high performance power switch for charger and adapter applications. Key design wins in the mobile communication space during the quarter included several CMOS LDOs into next generation smartphones, plus an expansion open AC to DC content for cell phone chargers targeting Europe and India, in addition to our base market in Asia.

在通訊市場中，我們看到霍爾效應感測器和智慧型手機外殼的採用越來越多。我們本季發布了一款新型高靈敏度雙輸出單極霍爾開關，進一步擴大了我們在這一領域的業務。我們也發布了交流轉直流電源控制器產品線的幾款新產品，包括支援 Quick Charge 2.0 協定的恆定電流、恆壓電源轉換器以及適用於充電器和適配器應用的高效能電源開關。本季行動通訊領域的關鍵設計成果包括下一代智慧型手機中的多個 CMOS LDO，以及針對歐洲和印度以及亞洲基礎市場的手機充電器的擴展開放式交流到直流內容。

In the computing market, we released a new low-power 5 gigabit Mux/DeMux re-driver to support the USB 3.0 protocol for computing and portable peripheral market space. We continue to see strong acceptance of our USB 3.0 and PCIe re-drivers in desktops, workstation and server applications, with a strong ramp in the quarter on our 10-gigabit USB 3.1 re-driver and our 8-gigabit PCIe SATA combo re-drivers in workstation platforms.

在運算市場，我們發布了一款新型低功耗 5 GB Mux/DeMux 轉接驅動器，支援計算和便攜式週邊市場空間的 USB 3.0 協定。我們繼續看到我們的USB 3.0 和PCIe 轉接驅動器在台式機、工作站和伺服器應用中得到了廣泛接受，本季度我們的10 Gb USB 3.1 轉接驅動器和8 Gb PCIe SATA 組合重新驅動器的銷量強勁增長.工作站平台中的驅動程式。

In other computing applications, Diodes launched a family of high-current load switches featuring low quiescent current and a small footprint for portable PCs, ultra books and tablets. We introduced our first USB Power Delivery switch for USB type C applications.

在其他運算應用中，Diodes 推出了一系列高電流負載開關，具有低靜態電流和小佔用空間，適用於便攜式 PC、超級本和平板電腦。我們推出了首款適用於 USB C 型應用的 USB 供電開關。

In the industrial market, we received initial orders for our newly released family of 24-volt high-accuracy micropower LDOs. Leading customers in the lighting and e-meter markets have already adopted and are moving to production using this new line.

在工業市場，我們新發布的 24 伏特高精度微功率 LDO 系列收到了首批訂單。照明和電子電錶市場的領先客戶已經採用並正在使用這條新生產線進行生產。

We also saw increased demand for our standard linear products with key wins for our interface devices in both security control and elevator control systems as well as continued momentum for our LED drivers across a variety of retrofit lighting sockets. Also, for the industrial applications, Diodes launched a range of high-voltage gate drivers including several 50-volt and 100-volt parts aimed at power tools and drones as well as Diodes' first 3-phase 600-volt part for motor driving. As I've mentioned in the past, Diodes' 175-degree C qualified MOSFET technology is ideal for industrial applications. And we added 2 devices to our 40-volt and 64-volt series that are optimized figure-of-merit to minimize losses in switching applications.

我們也看到對我們的標準線性產品的需求不斷增加，我們的介面設備在安全控制和電梯控制系統中取得了重大勝利，並且我們的 LED 驅動器在各種改造照明插座中的持續發展勢頭。此外，針對工業應用，Diodes 推出了一系列高壓閘極驅動器，包括多個針對電動工具和無人機的 50 伏特和 100 伏特零件，以及 Diodes 首款用於馬達驅動的三相 600 伏特零件。正如我過去提到的，Diodes 的 175 攝氏度合格 MOSFET 技術非常適合工業應用。我們在 40 伏特和 64 伏特系列中添加了 2 款裝置，這些裝置經過優化品質因數，可最大程度地減少開關應用中的損耗。

And finally, in the automotive market, Diodes launched a stream of new products across several product groups, including MOSFETs, IntelliFETs, Bipolar Transistors, TVS, trench Schottkys and SBR platforms. MOSFETs from Diodes' high-temperature and Shielded Gate MOSprocess technology are becoming the backbone of our expanding automotive qualified discrete product portfolio. MOSFET products from this family continue to drive customer qualification activity and design in among Diodes' Tier 1 automotive customers.

最後，在汽車市場，Diodes 推出了跨多個產品組的一系列新產品，包括 MOSFET、IntelliFET、雙極電晶體、TVS、溝槽肖特基和 SBR 平台。採用 Diodes 高溫和屏蔽柵極 MOS 製程技術的 MOSFET 正在成為我們不斷擴大的汽車級分立產品組合的支柱。該系列的 MOSFET 產品繼續推動 Diodes 一級汽車客戶的客戶資格認證活動和設計。

We were also very pleased to release the industry's first packet switches that are auto-qualified through AEC-Q100 grade 3. These new PCI express packet switches target applications in infotainment, telematics and Advanced Driver Assistance Systems. The vision-based ADAS systems for autonomous driving vehicles will require significant data processing and PCI express is emerging as the protocol of choice. We are working with multiple market-advancing customers in this space and are well-positioned to support this exciting new area. Also in the automotive market, we are seeing a move to USB type C connectors for charging and data transmission in vehicles and are working with several major module manufacturers to provide a complete automotive type C solution.

我們也非常高興地發布了業界首款通過 AEC-Q100 3 級自動認證的分組交換機。這些新型 PCI Express 分組交換器的目標應用是資訊娛樂、遠端資訊處理和高級駕駛輔助系統。用於自動駕駛車輛的基於視覺的 ADAS 系統將需要大量的數據處理，而 PCI Express 正在成為首選協議。我們正在與該領域的多個市場領先客戶合作，並處於有利位置來支持這個令人興奮的新領域。同樣在汽車市場，我們看到 USB Type C 連接器用於車輛充電和資料傳輸的趨勢，並且正在與幾家主要模組製造商合作，提供完整的汽車 Type C 解決方案。

In summary, we had a solid quarter, with above seasonal results and are expecting an acceleration of growth in the second quarter on continued market strength. We are well-positioned across our customer base with an expended sales footprint and product line to drive long-term revenue growth and share gains.

總而言之，我們度過了一個穩健的季度，業績高於季節性，預計由於市場持續走強，第二季度成長將加速。我們在客戶群中處於有利地位，擴大了銷售範圍和產品線，以推動長期收入成長和份額收益。

With that, I'll open the floor to questions.

接下來，我將開始提問。

(Operator Instructions) Our first question does come from the line of Gary Mobley with Benchmark.

（操作員說明）我們的第一個問題確實來自 Gary Mobley 與 Benchmark 的對話。

Dr. Lu, correct me if I'm wrong, but isn't your target model 35% gross margins on a $1 billion of revenue?

盧博士，如果我錯了，請糾正我，但你的目標模型不是10億美元收入的35%毛利率嗎？

Margins 35%? And what's your question? 35%?

利潤率35%？你的問題是什麼？35%？

Yes. So the question is, you're in essence guiding for an annualized revenue run rate of $1 billion in Q2, but yet your gross margin guidance is only 33%. Could you help reconcile the difference there?

是的。所以問題是，您實質上指導第二季度的年化收入運行率為 10 億美元，但您的毛利率指導僅為 33%。您能幫忙協調那裡的差異嗎？

(technical difficulty)

（技術難度）

You know some of the CSP, some of the BDFN. Those are high end of the packaging. We are short of those capacity. So we still continue invest in that area and some of those are 33%. Some of that's standard or packaging. We still have some underutilization. And at the same time, we are continuing to change our mix. So when we get to future, we believe we are on the way to get this 35% GP.

您了解一些 CSP、一些 BDFN。這些都是高階包裝。我們缺乏這些能力。所以我們仍然繼續在這個領域進行投資，其中有33%。其中一些是標準或包裝。我們仍然有一些未充分利用的情況。同時，我們正在繼續改變我們的組合。因此，當我們展望未來時，我們相信我們即將獲得 35% 的 GP。

And our next question is from the line of Tristan Gerra with Baird.

我們的下一個問題來自 Tristan Gerra 和 Baird。

Could you give us what the utilization rate was in the quarter? And what you expect in the coming quarter? And also, any sense of the percentage change or decline in ASPs in the quarter?

您能否告訴我們本季的使用率是多少？您對下一季有何期望？另外，您對本季平均售價的百分比變化或下降有什麼感覺嗎？

Okay. I think Rick can give you that utilization.

好的。我認為里克可以給你這種利用。

So -- well first of all, let's talk about pricing. On a mix independent basis, which means that it's not dependent upon the types of product sold, it was about 2%, which is right in the midpoint of where we think it normally is. And the utilization was impacted because in the first quarter, we had Chinese New Year, but the assembly tests areas are in the 79% to 80% range. KFAB, of course, was low because of the January and February issues. OFAB was 90%, which is better than what we would expect a wafer fab to run; and then the SFABS, the Shanghai fabs, were in the 60% range.

那麼——首先，我們來談談定價。在獨立於混合的基礎上，這意味著它不依賴所銷售產品的類型，約為 2%，正好處於我們認為通常水平的中點。利用率受到影響，因為第一季我們過農曆新年，但組裝測試區域的利用率在 79% 至 80% 範圍內。當然，由於 1 月和 2 月的問題，KFAB 的股價較低。OFAB 為 90%，這比我們預期晶圓廠的運作情況要好；然後是上海晶圓廠 SFABS，處於 60% 範圍內。

Great. And also, if you could provide an update on the Kansas City fab consolidation; and also in terms of the savings that you expect to generate from that consolidation.

偉大的。另外，您能否提供堪薩斯城晶圓廠整合的最新情況？以及您期望從整合中產生的節省。

Yes. So we've committed to the landlord that we will turn the building back to them on November 15, 2017. And we will be moving that production to our own internal fabs and to external fabs. And I think we said previously that we would be saving about $3 million a quarter, starting whenever the fabs are fully utilized overseas.

是的。因此，我們向房東承諾，我們將在 2017 年 11 月 15 日將建築物歸還給他們。我們將把生產轉移到我們自己的內部工廠和外部工廠。我想我們之前說過，只要海外晶圓廠得到充分利用，我們每季將節省約 300 萬美元。

I think what we actually said was $10 million to $15 million of the saving after we fully rent in the SFAB and OFAB.

我認為我們實際上所說的是在我們完全租用 SFAB 和 OFAB 後節省 1000 萬至 1500 萬美元。

(Operator Instructions) Our next question comes from the line of Shawn Harrison with Longbow Research.

（操作員說明）我們的下一個問題來自 Longbow Research 的 Shawn Harrison。

If we look at the 10% sequential revenue growth guidance, knowing the second quarter is typically seasonally strong, what market sectors would be maybe above or below that growth rate sequentially for the June quarter?

如果我們看一下 10% 的環比營收成長指引，知道第二季通常季節性強勁，那麼哪些市場領域可能會高於或低於 6 月季度的環比成長率？

I think we're having a relatively -- to be honest with you, I think we're seeing some decent revenue across segments. I think you'll see our industrial, automotive and communication segments probably leading; probably the one that's the slowest may be communications. Computers, looks like we have a lot of new products in and some next-generation desktop, notebook and servers. So we believe we're going to see a little bit of prebuild into the third quarter on that. So I think you could say that pretty much all segments are up, when our numbers are in that good of -- when we're showing such strong guidance.

我認為我們有一個相對 - 老實說，我認為我們在各個領域都看到了一些不錯的收入。我認為您會看到我們的工業、汽車和通訊領域可能處於領先地位；可能最慢的可能是通訊。電腦方面，看起來我們有很多新產品，包括一些下一代桌上型電腦、筆記型電腦和伺服器。因此，我們相信我們將在第三季看到一些預建工作。所以我認為你可以說，當我們的數據處於如此良好的狀態時，當我們表現出如此強有力的指導時，幾乎所有細分市場都在上漲。

Pericom, too. Pericom from the acquisition. I think Pericom will start to ramp in the second quarter.

百利通也是如此。由 Pericom 收購。我認為 Pericom 將在第二季開始成長。

In the ramp in that -- is that because of the one of the larger customers there better coming back with new products or you've been able to kind of continue to grow the portfolio as well?

在這個成長過程中——是因為那裡的一個大客戶更好地帶著新產品回來了，還是因為你也能夠繼續擴大產品組合？

I think we're broad-based growth, but I think we have had some long-awaited design wins that are going to start to -- that are starting to come into production in mid second quarter and through third and fourth quarter.

我認為我們的成長基礎廣泛，但我認為我們已經取得了一些期待已久的設計成果，這些設計成果將在第二季中期、第三季和第四季開始投入生產。

And one of the area is our frequency product. The product that originally Pericom de-emphasized those kind of products, okay? Crystal and crystal oscillators. And since Diode took over, we change direction. We went out to the customer. We want to grow this area. And I think now the customer coming back and we start to fit the capacity to ramp it. So those will be another factor of the growth from Pericom acquisition.

其中之一就是我們的頻率產品。最初 Pericom 不再強調此類產品的產品，好嗎？晶體和晶體振盪器。自從 Diode 接任以來，我們改變了方向。我們出去見客戶。我們想要發展這個領域。我認為現在客戶回來了，我們開始提高產能。因此，這些將成為 Pericom 收購帶來的成長的另一個因素。

Then if I may, just one follow-up. There's some concerns about double ordering by distributors or even by OEMs, given lead times within some semiconductors moving out. But it looks like your inventory was flat, the POS was relatively strong excluding Asia. Maybe if there's any other pieces of data that you can give us to just assuage some concerns out there that you're seeing some reckless order patterns?

如果可以的話，請進行一次後續行動。鑑於某些半導體的交貨時間較長，人們對分銷商甚至原始設備製造商的雙重訂購存在一些擔憂。但看起來你們的庫存持平，POS 相對強勁（不包括亞洲）。也許您可以向我們提供任何其他數據來緩解您看到一些魯莽的訂單模式的擔憂？

Yes. We watch that pretty closely. And we look at the order patterns, we look at where people are. Yes, certainly channels being more aggressive, but it's more aggressive over longer periods rather than trying to pack it all into one quarter. So when we -- when product is a little tighter, then we start to look at our base demand in each on of our product areas and one of our packages. And we're really not seeing -- even with the KFAB area, we're not really seeing people, like, focused on trying to hoard parts or anything. It's really more just kind of working through on a schedule. So I would say that the aggressive marketplace is a little bit more aggressive on a longer-term basis rather than stacking up. And as you said and as -- I think we said in the script, North America and Europe had record POS quarters. And we expect Asia to have a big bounce back second quarter.

是的。我們非常密切地關注這一點。我們查看訂單模式，查看人們在哪裡。是的，通路當然更加激進，但它在較長時期內更加激進，而不是試圖將其全部壓縮到一個季度中。因此，當我們——當產品有點緊張時，我們開始考慮我們每個產品領域和一個包裝的基本需求。我們確實沒有看到——即使在 KFAB 區域，我們也沒有真正看到人們專注於試圖囤積零件或任何東西。這實際上更像是按計劃完成工作。所以我想說，激進的市場從長遠來看更具侵略性，而不是堆積起來。正如您所說，我想我們在劇本中說過，北美和歐洲的 POS 季度創紀錄。我們預計亞洲第二季將大幅反彈。

I'm not showing any further questions. I'll now turn the call back to Dr. Lu for closing remarks.

我不會提出任何進一步的問題。現在我將把電話轉回盧醫師做總結發言。

Thank you for your participation today. Operator, you may now disconnect.

感謝您今天的參與。接線員，您現在可以斷開連接了。

Ladies and gentlemen, this does conclude the program, and you may now disconnect. Everyone, have a great day.

女士們先生們，節目到此結束，您現在可以斷開連接了。大家，祝你有美好的一天。