Diodes Inc (DIOD) 2017 Q2 法說會逐字稿

Good afternoon, and welcome to Diodes Incorporated Second Quarter 2017 Financial Results Conference Call. (Operator Instructions) As a reminder, this conference call is being recorded today, Tuesday, August 8, 2017.

下午好，歡迎參加 Diodes 公司 2017 年第二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 8 月 8 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' Second 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 年第二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 announced 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-Q for the second quarter 2017.

在我把電話轉給盧博士之前，我想提醒我們的聽眾，今天公佈的結果是初步的，因為這些結果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 年第二季的 10-Q 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 risks 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, August 8, 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 8 月 8 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's 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，本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. I'm very pleased with our second quarter results, which were highlighted by the achievement of record revenue and gross profit as we continue to capitalize on the strength in global market and gain market share. All of our target end markets and geographies grew sequentially, resulting in record revenue in both Asia and Europe. Additionally, Pericom attained its highest quarterly revenue and gross profit since the acquisition, further contributing to Diodes' strong growth and gross margin improvement in the quarter. In fact, gross margin exceeded 34% in the second quarter, which is the highest level since the first quarter of 2011. Next quarter, we expect to approach our target model of 35% on continued improvement in product mix and utilization across our manufacturing facilities. Additionally, our Kansas facility is on schedule to be closed November 15 with all production transfers efficiently in process. As a result, of this quarter's solid performance, we have surpassed the $500 million revenue mark for the first half of the year, positioning Diodes to achieving our $1 billion revenue goal in 2017. This quarter also brings us one step closer to our target operating model of 20% for SG&A plus R&D and a gross margin of 35%.

謝謝你，莉安。歡迎大家，感謝您今天加入我們。我對我們第二季的業績感到非常滿意，隨著我們繼續利用全球市場的優勢並獲得市場份額，我們實現了創紀錄的收入和毛利。我們所有的目標終端市場和地區都持續成長，導致亞洲和歐洲的收入創下歷史新高。此外，Pericom 實現了自收購以來最高的季度收入和毛利，進一步促進了 Diodes 本季的強勁成長和毛利率改善。事實上，第二季毛利率超過34%，這是自2011年第一季以來的最高水準。下個季度，隨著我們生產設施的產品組合和利用率的持續改進，我們預計將實現 35% 的目標模型。此外，我們的堪薩斯工廠按計劃將於 11 月 15 日關閉，所有生產轉移都在有效進行中。因此，憑藉本季度的穩健表現，我們上半年的收入突破了 5 億美元大關，使 Diodes 能夠在 2017 年實現 10 億美元的收入目標。本季也讓我們距離 SG&A 加研發 20% 的目標營運模式和 35% 的毛利率又更近了一步。

As we look to the second half of the year, we remain focused on expanding revenue and improving gross margin during this growth cycle as we benefit from our increased operating leverage in order to further expand earnings.

展望下半年，我們仍然專注於在這個成長週期中擴大收入和提高毛利率，因為我們受益於營運槓桿的增加，以進一步擴大收益。

With that, I will now turn the call over to Rick to discuss our second quarter financial results as well as third 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二季的財務業績以及第三季的指導。

Thanks, Dr. Lu, and good afternoon, everyone. Revenue for second quarter 2017 was $264.2 million, an increase of 11.8% from the $236.3 million in the first quarter 2017 and an increase of 11.7% from the $236.6 million in the second quarter 2016. Revenue in the quarter increased sequentially, reflecting continued strength across the company's target end markets and geographies, combined with higher growth of Pericom products, collectively resulting in market share gains in the quarter. Gross profit for the second quarter was $90.1 million or 34.1% of revenue compared to $73.9 million or 31.3% of revenue in the first quarter 2017 and $74.8 million or 31.6% of revenue in the prior year quarter. The sequential increase in gross profit margin was due primarily to regional strength in North America and Europe and improved utilization of product mix, including a higher contribution from Pericom products.

謝謝盧博士，大家下午好。2017年第二季營收為2.642億美元，比2017年第一季的2.363億美元成長11.8%，比2016年第二季的2.366億美元成長11.7%。本季營收季增，反映出公司目標終端市場和地區的持續強勁，加上 Pericom 產品的更高成長，共同導致本季市場佔有率的成長。第二季的毛利為9,010 萬美元，佔營收的34.1%，而2017 年第一季的毛利為7,390 萬美元，佔營收的31.3%，去年同期的毛利為7,480 萬美元，佔營收的31.6%。毛利率環比成長主要歸因於北美和歐洲的區域實力以及產品組合利用率的提高，其中包括 Pericom 產品的貢獻增加。

GAAP operating expenses for the second quarter 2017 were $66.3 million or 25.1% of revenue and $59.8 million or 22.6% of revenue on a non-GAAP basis, which excludes $4.6 million of amortization of acquisition-related intangible asset expenses, $1.7 million of KFAB restructuring charges and $200,000 of retention costs. This compares to GAAP operating expenses of $64.6 million or 27.3% of revenue last quarter and $63.5 million or 26.9% of revenue in the second quarter of 2016.

2017 年第二季的GAAP 營運費用為6,630 萬美元，佔營收的25.1%；以非GAAP 計算，營運費用為5,980 萬美元，佔營收的22.6%，其中不包括460 萬美元的收購相關無形資產攤出售、170 萬美元的KFAB 重組費用費用和 20 萬美元的保留費用。相較之下，上季 GAAP 營運費用為 6,460 萬美元，佔營收的 27.3%；2016 年第二季 GAAP 營運費用為 6,350 萬美元，佔營收的 26.9%。

Looking specifically at selling, general and administrative expenses for the second quarter. SG&A expenses were approximately $39.7 million or 15% of revenue, which is our operating model. This compares to $39.7 million or 16.8% of revenue last quarter and $41.4 million or 17.5% of revenue for the second quarter 2016.

特別關注第二季的銷售、一般和管理費用。SG&A 費用約為 3,970 萬美元，佔收入的 15%，這是我們的營運模式。相較之下，上一季的營收為 3,970 萬美元，佔營收的 16.8%；2016 年第二季的營收為 4,140 萬美元，佔營收的 17.5%。

Investment in research and development for the second quarter was approximately $19.8 million or 7.5% of revenue compared to $18 million or 7.6% of revenue last quarter and $17 million or 7.2% of revenue in the second quarter 2016.

第二季的研發投資約為1,980 萬美元，佔營收的7.5%，而上一季的研發投資為1,800 萬美元，佔營收的7.6%，2016 年第二季的研發投資為1,700 萬美元，佔收入的7.2%。

Combined, SG&A plus R&D for the second quarter 2017 was $59.5 million or 22.5% of revenue compared to $57.7 million or 24.4% of revenue in the previous quarter and $58.4 million or 24.7% of revenue in the second quarter 2016.

2017 年第二季的銷售、行政管理加研發合計為5,950 萬美元，佔營收的22.5%，而上一季為5,770 萬美元，佔營收的24.4%，2016 年第二季為5,840 萬美元，佔收入的24.7%。

Total other expense amounted to approximately $4 million for the quarter, including a $1.6 million negative currency impact. Income before taxes and noncontrolling interests in the second quarter 2017 amounted to $19.9 million compared to $2.1 million last quarter and $8.8 million in the second quarter 2016.

該季度其他費用總額約為 400 萬美元，其中包括 160 萬美元的負面貨幣影響。2017 年第二季稅前及非控股權益前收入為 1,990 萬美元，上一季為 210 萬美元，2016 年第二季為 880 萬美元。

Turning to income taxes. Our effective income tax rate for the second quarter 2017 was approximately 30.4%, which is slightly higher than our expectations due mainly to 2 discrete items: one related to the adoption of ASU 2016-09 regarding stock compensation; and the other, to the internal restructuring we have recently concluded.

轉向所得稅。我們2017 年第二季的有效所得稅率約為30.4%，略高於我們的預期，主要歸因於2 個離散項目：一是與採用ASU 2016-09 關於股票薪酬相關；二是與採用ASU 2016 -09 有關股票薪酬相關；另一方面是我們最近完成的內部重組。

GAAP net income for the second quarter 2017 was $13.2 million or $0.26 per diluted share compared to $1.2 million or $0.02 per diluted share in the first quarter 2017 and $5.8 million or $0.12 per diluted share in the second quarter 2016. The share count used to compute GAAP diluted EPS for the second quarter 2017 was 49.9 million shares.

2017 年第二季的GAAP 淨利為1,320 萬美元，即稀釋後每股0.26 美元，而2017 年第一季為120 萬美元，即稀釋後每股0.02 美元，2016 年第二季為580 萬美元，即稀釋後每股0.12 美元。用於計算 2017 年第二季 GAAP 攤薄每股盈餘的股票數量為 4,990 萬股。

Second Quarter 2017 non-GAAP adjusted net income was $17.8 million or $0.36 per diluted share which excluded, net of tax, $3.8 million of noncash acquisition-related intangible asset amortization costs and $800,000 of restructuring costs related to KFAB closure accruals. This compares to non-GAAP net income of $7 million or $0.14 per diluted share last quarter and $9.8 million or $0.20 per diluted share in the second quarter 2016.

2017 年第二季非GAAP 調整後淨利為1,780 萬美元，或稀釋後每股0.36 美元，扣除稅後，不包括380 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80 萬美元重組成本。相較之下，上一季的非公認會計原則淨利潤為 700 萬美元，即稀釋後每股收益 0.14 美元，2016 年第二季為 980 萬美元，即稀釋後每股收益 0.20 美元。

We have included in our earnings release a reconciliation of GAAP net income to non-GAAP adjusted net income, which provides additional details. Included in the second quarter 2017 GAAP net income and non-GAAP adjusted net income was approximately $4.8 million, net of tax, noncash share-based compensation expense. Excluding share-based compensation expenses, both GAAP EPS and non-GAAP adjusted diluted EPS would have increased by an additional $0.07 per diluted share in the second quarter.

我們在收益報告中納入了 GAAP 淨利潤與非 GAAP 調整後淨利潤的調整表，其中提供了更多詳細資訊。2017 年第二季的 GAAP 淨利潤和非 GAAP 調整後淨利潤約為 480 萬美元，扣除稅項和非現金股票補償費用。不包括以股票為基礎的補償費用，第二季 GAAP 每股盈餘和非 GAAP 調整後稀釋每股盈餘將額外增加 0.07 美元。

Cash flow generated from operations was $19.8 million for the second quarter 2017. Free cash flow was a negative $5 million for the second quarter, which included $24.8 million of capital expenditures. Net cash flow for the quarter was a positive $1.5 million, including the pay down of approximately $15.7 million of long-term debt.

2017 年第二季營運產生的現金流為 1,980 萬美元。第二季自由現金流為負 500 萬美元，其中包括 2,480 萬美元的資本支出。該季度的淨現金流量為正 150 萬美元，其中包括償還約 1,570 萬美元的長期債務。

Turning to the balance sheet. At the end of the second quarter, cash and cash equivalents totaled approximately $266.6 million and short-term investment totaled $16.4 million. Working capital was approximately $541 million.

轉向資產負債表。截至第二季末，現金及現金等價物總計約2.666億美元，短期投資總計1,640萬美元。營運資金約 5.41 億美元。

At the end of the second quarter, inventory increased by approximately $16.4 million from the first quarter 2017 to approximately $207.7 million. The increase in inventory reflects a $5.1 million increase in finished goods, a $4.7 million increase in work in process and a $6.6 million increase in raw materials. Inventory days were 104 in the quarter compared to 107 days last quarter. At the end of the quarter, cash receivable was approximately $223 million, an increase of $18 million from last quarter. AR days were 74 compared to 80 last quarter. Our long-term debt, net of the current portion, totaled approximately $383 million.

截至第二季末，庫存較 2017 年第一季增加約 1,640 萬美元，達到約 2.077 億美元。庫存的增加反映了製成品增加了 510 萬美元、在製品增加了 470 萬美元以及原材料增加了 660 萬美元。本季庫存天數為 104 天，而上季為 107 天。截至季末，應收現金約2.23億美元，較上季增加1,800萬美元。AR 天數為 74 天，而上季為 80 天。扣除目前部分後，我們的長期債務總計約為 3.83 億美元。

Capital expenditures again for the second quarter were $24.8 million or 9.4% of revenue, with the majority of the expenditures related to capacity expansion in both CAT and SAT as well as 8-inch equipment in SFAB 2. We believe 2017 will be slightly higher than our 5% to 9% revenue model due mainly to capacity expansion related to the current favorable market environment and growth projections for 2018. Depreciation and amortization expense for the second quarter was $23.4 million.

第二季的資本支出再次為 2,480 萬美元，佔收入的 9.4%，其中大部分支出與 CAT 和 SAT 的產能擴張以及 SFAB 2 的 8 英寸設備有關。我們認為 2017 年將略高於我們的5%至9% 收入模式主要是由於與當前有利的市場環境和2018 年成長預測相關的產能擴張。第二季的折舊和攤提費用為 2,340 萬美元。

Now turning to our outlook. For the third quarter 2017, we expect revenue to range between $270 million and $290 million or up 2.2% to 9.8% sequentially. We expect gross margin to be 34.5%, plus or minus 1%. 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 22.5% of revenue, plus or minus 1%. We expect interest expense to be approximately $3 million. Our income tax rate is expected to be 30%, plus or minus 3%, and shares used to calculate diluted EPS for the third quarter are anticipated to be approximately 50.3 million. Please note that purchase accounting adjustments of $4.5 million after-tax for Pericom and previous acquisitions plus KFAB closure costs, are not included in these non-GAAP estimates.

現在轉向我們的展望。對於 2017 年第三季度，我們預計營收將在 2.7 億美元至 2.9 億美元之間，或比上一季成長 2.2% 至 9.8%。我們預期毛利率為 34.5%，上下浮動 1%。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 22.5%，上下浮動 1%。我們預計利息支出約為 300 萬美元。我們的所得稅稅率預計為30%，正負3%，用於計算第三季攤薄每股收益的股票預計約為5,030萬股。請注意，這些非 GAAP 估算中不包括 Pericom 和先前收購的 450 萬美元稅後收購會計調整，加上 KFAB 關閉成本。

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. Our record second quarter revenue was driven by strong sales across all end markets and regions, including record revenue in both Asia and Europe. Industrial revenue was up 33% sequentially due to solid revenue increases in North America and Europe. In fact, each of our industrial, automotive and communication end markets reached quarterly revenue records on a dollar basis in the second quarter. Distributor POS also set records both globally and in each region and was up 12.7%, while distributor inventory rose 6%. Inventory in the channel expanded in preparation for continued growth in the third quarter. Lead time increased on several product lines, in line with industry patterns. Design and customer activity also remained strong across all regions as we continue to penetrate our key customer base with expanded sales footprint and broader product lines. We continue to see significant customer synergy and cross-selling opportunities with the Pericom products. And as Dr. Lu mentioned, Pericom reached the highest quarterly revenue since the acquisition.

謝謝你，瑞克，下午好。我們創紀錄的第二季收入是由所有終端市場和地區的強勁銷售推動的，其中包括亞洲和歐洲創紀錄的收入。由於北美和歐洲收入的穩健增長，工業收入環比增長了 33%。事實上，我們的每個工業、汽車和通訊終端市場在第二季都達到了以美元計算的季度收入記錄。經銷商 POS 也創下了全球和各地區的記錄，成長了 12.7%，而經銷商庫存則增加了 6%。通路庫存擴大，為第三季的持續成長做好準備。多個產品線的交貨時間增加，符合產業模式。隨著我們透過擴大銷售範圍和更廣泛的產品線繼續滲透我們的主要客戶群，所有地區的設計和客戶活動也保持強勁。我們繼續看到與 Pericom 產品的重大客戶協同和交叉銷售機會。正如盧博士所提到的，百利通達到了收購以來的最高季度收入。

From a product perspective, we set revenue records on timing, signal integrity, protection, MOSFET, and CMOS LDOs, with strong momentum on switch products due to recent design wins on new products. As we look to the second half of the year, we expect to continue making progress with expanded revenue growth, new product introductions and design wins.

從產品角度來看，我們在時序、訊號完整性、保護、MOSFET 和 CMOS LDO 方面創下了收入記錄，由於最近在新產品上取得了設計勝利，開關產品的勢頭強勁。展望今年下半年，我們預計將繼續取得進展，營收成長擴大、新產品推出和設計獲勝。

Turning to global sales. Asia represented 79% of revenue; Europe, 12%; and North America, 9%, during the second quarter 2017. In terms of our end markets, consumer represented 26% of revenue; communications, 24%; industrial, 25%; computing, 18%; and automotive was 7% of revenue.

轉向全球銷售。亞洲佔收入的 79%；歐洲，12%； 2017 年第二季度，北美地區成長 9%。就我們的終端市場而言，消費者佔收入的26%；通訊，24%；工業，25%；計算，18%；汽車業佔收入的 7%。

Let me now provide more detail within each of our end markets. In the consumer market, we expanded our audio product line with a family of piezo sounders designed to drive ceramic and piezo speakers for applications such as location tracking within the IoT space. We also continue to grow our product offering targeting the emerging asset tracker application space. Additionally, to further expand our presence in the USB Type C connector market, we released a proprietary integrated crossbar MUX and switch solution that offers excellent signal integrity. This device was commissioned by a major consumer electronics leader for use in their next-generation wearable device and is an example of the continued strong market acceptance of our Pericom products.

現在讓我提供我們每個終端市場的更多細節。在消費市場，我們透過一系列壓電發聲器擴展了我們的音訊產品線，這些發聲器旨在驅動陶瓷和壓電揚聲器，用於物聯網領域內的位置追蹤等應用。我們也持續擴大針對新興資產追蹤應用領域的產品供應。此外，為了進一步擴大我們在 USB Type C 連接器市場的影響力，我們發布了專有的整合式交叉開關 MUX 和開關解決方案，可提供出色的訊號完整性。該設備受一家主要消費性電子產品領導者委託用於其下一代穿戴式設備，是我們 Pericom 產品持續獲得市場認可的一個例子。

In the communications market, we released several additions to our AC to DC product line, including 2 new constant voltage, constant current controllers that support Quick Charge 3.0 specification for mobile charging. We also saw a continued market adoption of our CMOS LDO products in smartphones with major wins at 3 leading accounts, helping to drive another quarter of record revenue for this product line. Also for smartphones, we are aggressively ramping a Micropower Hall sensor at a major customer in support of a very significant design win.

在通訊市場，我們發表了幾款交流轉直流產品線的新增產品，包括兩款新的恆壓、恆定電流控制器，支援行動充電的 Quick Charge 3.0 規格。我們也看到我們的 CMOS LDO 產品在智慧型手機中持續被市場採用，並在 3 個領先客戶中取得重大勝利，幫助推動該產品線的收入再創新一個季度。同樣對於智慧型手機，我們正在積極向主要客戶提供微功率霍爾感測器，以支援非常重大的設計勝利。

Also for mobile communication applications, including charging of portable devices and wearables, additional products were launched to meet the needs of Diodes' major customers, including 6 TVS low-capacitance and general protection devices. Additionally, our low-voltage MOSFET technology enabled the launch of 3 common-drain MOSFET pairs used as bidirectional load switches for battery pack applications.

此外，針對行動通訊應用，包括可攜式裝置和穿戴式裝置的充電，也推出了其他產品以滿足Diodes主要客戶的需求，其中包括6個TVS低電容和通用保護元件。此外，我們的低電壓 MOSFET 技術還支援推出 3 個共漏極 MOSFET 對，用作電池組應用的雙向負載開關。

For computing applications, Diodes launched 2 additional USB power delivery switches for USB Type C applications that also support fast swap of USB power delivery. We also released MOSFET's package in the PowerDI5060 targeted at motherboard and notebook V-Core applications as well as 100-volt trench Schottky parts aimed at power supply applications in notebook and servers. Additionally, our new products from the signal integrity line continue to perform very well in the computing market with notable penetration of our USB 3 ReDrivers in desktop and server applications. In addition, we achieved several significant wins for our translators and USB charging controllers in notebooks as well as a PCIe card reader win for our connected ASIC line.

對於計算應用，Diodes 推出了 2 個用於 USB Type C 應用的附加 USB 電力傳輸開關，這些開關還支援 USB 電力傳輸的快速交換。我們也發布了針對主機板和筆記型電腦V-Core應用的PowerDI5060中的MOSFET封裝，以及針對筆記型電腦和伺服器電源應用的100伏溝槽肖特基元件。此外，我們的訊號完整性系列新產品繼續在運算市場上表現出色，我們的 USB 3 轉接驅動器在桌面和伺服器應用中的顯著滲透。此外，我們還為筆記型電腦中的轉換器和 USB 充電控制器贏得了許多重大勝利，並為我們的連接 ASIC 系列贏得了 PCIe 讀卡機勝利。

Also in the computing market, we have significant content across multiple customers and multiple platforms based on the Intel Purley processor. We saw initial production ramp in support of this architecture on a multi-channel PCIe ReDriver and 2 crystal oscillators, and we will ramp several interface logic devices, including an I2C level shifter on an I2C Mux and a translator in the coming quarter. We are well positioned to capitalize on the market opportunity tied to the Purley processor adoption.

同樣在運算市場，我們擁有跨多個客戶和基於英特爾 Purley 處理器的多個平台的重要內容。我們在多通道 PCIe ReDriver 和 2 個晶體振盪器上看到了支援該架構的初始生產量，並且我們將在下一季度增加多個介面邏輯元件，包括 I2C Mux 上的 I2C 電平轉換器和轉換器。我們處於有利地位，可以充分利用與 Purley 處理器採用相關的市場機會。

For industrial applications, we launched 5 new devices in our family of high-voltage gate drivers aimed at industrial motor driving as part of the green initiative for increased efficiency and power conservation. Also new for Q2, were 2 devices featuring a family of MOSFET load switches with integrated control functionality. These products reduced component count and board area while enabling efficient switching. This voltage range of MOSFET is also suitable for medical, computing and consumer applications.

對於工業應用，我們在高壓閘極驅動器系列中推出了 5 款新元件，旨在用於工業馬達驅動，作為提高效率和節能綠色倡議的一部分。第二季的新產品還有 2 款採用具有整合控制功能的 MOSFET 負載開關系列的裝置。這些產品減少了元件數量和電路板面積，同時實現了高效能開關。此電壓範圍的 MOSFET 也適用於醫療、計算和消費性應用。

Also in the industrial market, we once again extended our range of LED lighting products with the release of several additional products targeting TRIAC dimmable lighting applications, including commercial lighting. Design wins in the space includes several standard linear wins in white goods and power adapters in addition to expanding our sensor penetration in the e-meters. We also continued to develop our position in the China HVAC market with positions in multiple platforms for our linear regulators, voltage references and interface products.

同樣在工業市場，我們再次擴大了 LED 照明產品範圍，發布了幾款針對 TRIAC 調光照明應用（包括商業照明）的附加產品。該領域的設計勝利包括白色家電和電源適配器中的多項標準線性勝利，以及擴大我們的感測器在電子電錶中的滲透率。我們也持續發展我們在中國暖通空調市場的地位，在線性穩壓器、電壓基準和介面產品的多個平台上佔有一席之地。

And finally, in the automotive market, we continue to make significant advancements in this space with several new product introductions from our innovative MOSFET, IntelliFET, bipolar transistor, TVS and SBR platforms. The MOSFET portfolio continues to expand in this area based upon Diodes' state-of-the-art Shielded Gate wafer technology, power packaging and extended 175 degrees C temperature rating. Auto-qualified MOSFET products from this family continue to drive customer qualification activity and design-in across our automotive customers. Also in the quarter, we launched 3 IntelliFET devices that were developed and qualified for a range of automotive switching applications. Additionally, we launched a 40-volt Trench SBR device for reverse polarity protection based on Diodes' proprietary Trench SBR technology for a wide range of demanding auto application. New design wins in the auto space included a ceramic speaker driver for a car audio as well as an increased traction for our standard linear products with wins for a central modem for automotive communications and automotive lighting. We are also in discussions for a new opportunity for our watchdog timers for use in charging pile for an electronic vehicle platform.

最後，在汽車市場，我們透過創新的 MOSFET、IntelliFET、雙極電晶體、TVS 和 SBR 平台推出了多種新產品，繼續在該領域取得重大進展。基於 Diodes 最先進的屏蔽柵極晶圓技術、功率封裝和擴展的 175 攝氏度溫度額定值，MOSFET 產品組合繼續在該領域擴展。該系列經過汽車認證的 MOSFET 產品繼續推動汽車客戶的認證活動和設計。同樣在本季度，我們推出了 3 款 IntelliFET 裝置，這些裝置專為一系列汽車開關應用而開發並合格。此外，我們還推出了一款用於反極性保護的 40 伏特 Trench SBR 裝置，該裝置基於 Diodes 專有的 Trench SBR 技術，適用於各種要求嚴格的汽車應用。汽車領域的新設計勝利包括用於汽車音響的陶瓷揚聲器驅動器，以及為我們的標準線性產品增加牽引力以及用於汽車通信和汽車照明的中央調製解調器的勝利。我們也正在討論將我們的看門狗定時器用於電動車平台充電樁的新機會。

In summary, with our achievement of record revenue and gross profit in the second quarter and guiding for continued growth in margin improvement, we are solidly on track towards achieving our $1 billion revenue goal for the year. Our new product initiatives, design win momentum and customer expansion efforts over the past several quarters are key factors for our continued growth, combined with the increasing revenue contribution from Pericom as a result of the success from our cross-selling opportunities.

總之，隨著我們在第二季度實現了創紀錄的收入和毛利，並指導利潤率持續成長，我們正在穩步實現今年 10 億美元的收入目標。過去幾季我們的新產品計劃、設計贏得動力和客戶擴張努力是我們持續成長的關鍵因素，再加上 Pericom 因交叉銷售機會的成功而不斷增加的收入貢獻。

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

接下來，我將開始提問。操作員？

(Operator Instructions) And our first question is from the line of Gary Mobley with Benchmark.

（操作員說明）我們的第一個問題來自 Benchmark 的 Gary Mobley。

I wanted to start out with a question about gross margin. And I understand the dynamics that Diodes typically deals with when industry conditions are good as is the case now. You essentially have one foot on the gas pedal and one on the brake and trying to figure out the right mix in maximization of the gross margin. So I'm just wondering looking at the healthy gross margin in the quarter and as well, perhaps, your outlook for Q3, maybe if you can parse out the contribution between the mix of pricing for a like -- on a like-product basis and then as well leverage on the fixed expenses?

我想從一個關於毛利率的問題開始。我了解 Diodes 在行業狀況良好時通常會處理的動態，就像現在的情況一樣。實際上，你一隻腳踩在油門踏板上，一隻腳踩在煞車上，並試圖找出正確的組合以最大化毛利率。因此，我只是想知道本季的健康毛利率，也許還有您對第三季的展望，也許您是否可以在類似產品的基礎上解析出類似定價組合之間的貢獻然後還要利用固定費用？

Well, Gary, our gross margin affected several items, one is utilization. And I think in the second quarter now, probably most of our capacity is fully utilized, okay, especially the advantage -- the advanced packaging capacity is all fully utilized. And therefore, the benefit from capacity utilization probably -- our future is really going to come in from the KFAB consolidation with SFAB because then -- I think I announced that before, the synergy coming from the consolidation of KFAB into the SFAB will significantly improve our gross margin due to large capacity output in SFAB. So those will be the future improvements. Then from another one is product mix. And I think we continue to adjust the price mix -- the product mix, and this will continue to give us the advantage of bringing the gross margin up, and we'll continue to focus on that area.

嗯，加里，我們的毛利率影響了幾個項目，其中之一是利用率。我想現在第二季度，可能我們的大部分產能都被充分利用了，好吧，特別是優勢——先進的封裝產能都被充分利用了。因此，產能利用率的好處可能——我們的未來確實將來自 KFAB 與 SFAB 的合併，因為那時——我想我之前宣布過，KFAB 合併到 SFAB 所產生的協同效應將顯著改善我們的毛利率得益於SFAB 的大產能輸出。所以這些都會是未來的改進。然後從另一個是產品組合。我認為我們將繼續調整價格組合——產品組合，這將繼續為我們帶來提高毛利率的優勢，我們將繼續專注於該領域。

Okay. Mark, judging from your comments relating to distributor point of sale and the delta in the distributor inventory, it sounds like the days of Diodes' products held in the distribution channel has gone down in light of the ramp in revenue. Can you verify that? And do you share at all with Wall Street seemingly the consensus, a healthy degree of skepticism about sort of inventory restocking and what sort of impact that might have once we enter a seasonally weak part of the year.

好的。馬克，從您對分銷商銷售點和分銷商庫存增量的評論來看，隨著收入的增長，Diodes 產品在分銷渠道中的日子似乎已經縮短了。你能證實一下嗎？您是否同意華爾街的共識，即對庫存補充的類型以及一旦我們進入一年中季節性疲軟的時期可能產生的影響持合理程度的懷疑態度。

Actually, I think our inventory, if you balance the last 2 quarters, is relatively flat. I mean as I said, it was up 6% in the channel, but it's still just under 3 months. So we -- that's on a global picture. So I think our inventory is actually in pretty good shape right now. There's a tendency in the second quarter to bring inventory up in preparation for the third quarter. And as we're guiding continued growth, we expect our POS to grow again in this quarter. And so the inventory should balance out by the fourth quarter comes. So it's a pretty natural pattern for us. So I don't think that the inventory is -- this is just a restocking event.

實際上，我認為如果平衡過去兩個季度，我們的庫存相對持平。我的意思是，正如我所說，它在通道中上漲了 6%，但不到 3 個月。所以我們——這是在全球範圍內。所以我認為我們的庫存現在實際上狀況良好。第二季有增加庫存的趨勢，為第三季做準備。隨著我們引導持續成長，我們預計我們的 POS 將在本季再次成長。因此庫存應該會在第四季達到平衡。所以這對我們來說是一個很自然的模式。所以我不認為庫存只是一次補貨活動。

Okay. Last, can you speak to the competitive environment after what seems to be a pretty massive wave of consolidation? And talk about, perhaps specifically, which of your historical competitors might be pulling back the reins on some of the products that you specialize in.

好的。最後，您能談談在似乎相當大規模的整合浪潮之後的競爭環境嗎？並具體討論您的哪些歷史競爭對手可能會收回您專門從事的某些產品的控制權。

It's a pretty complex mix of competitors and product lines, so it's hard to be really consistently. Obviously, the pricing environment is firm. I wouldn't say there's a significant amount of price increase, but there -- the typical erosion doesn't exist there. Some of the commodity product areas are stabilizing, but there are still products, key focus products, that are under contention. The ones that everyone wants to sell. Even the consolidation, everybody out there is strong. So you might want to look at it and say NXP has gotten stronger not being related to NXP than it was, ON is still a very aggressive competitor in this space and so forth, and then you still have the emerging Asian suppliers. So I think our space will always remain very, very competitive.

這是競爭對手和產品線相當複雜的組合，因此很難真正保持一致。顯然，定價環境是堅挺的。我不會說價格大幅上漲，但那裡不存在典型的侵蝕。一些大宗商品領域正在趨於穩定，但仍有一些產品、重點產品有爭議。每個人都想賣的東西。即使是整合，每個人都很強。因此，您可能會想看看，並說恩智浦在與恩智浦沒有關係的情況下變得比以前更強大，ON 仍然是這個領域非常積極的競爭對手等等，然後您仍然擁有新興的亞洲供應商。所以我認為我們的空間將永遠保持非常非常有競爭力。

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

我們的下一個問題來自 Tristan Gerra 和 Baird 的對話。

I think you've mentioned that you were pretty much at full capacity. Is that the case for back end as well? And also, if you can give us maybe the utilization rates blended on your front end, this is what I meant, your front end capacity? And also if you could give us an update on your 8-inch ramp post qualification at FAB2 -- BCD FAB2?

我想你已經提到你幾乎已經滿載了。後端也是這樣嗎？另外，如果您能給我們前端的利用率，這就是我的意思，您的前端容量？另外，您能否向我們介紹一下您在 FAB2 - BCD FAB2 的 8 英寸坡道後資格認證的最新情況？

Okay. So let me talk about, first, the back end, we are up, about 95%. Rick can give you more details, we're up about 95%.

好的。所以讓我先談談後端，我們已經上升了，大約 95%。Rick 可以給你更多細節，我們已經完成了大約 95%。

So SAT is over 95%, 96%, and CAT is 92%.

所以SAT是95%以上，96%，CAT是92%。

Yes. So you know we said 95%; we assume it's fully loaded. So from the back end, in my mind, we are almost there, okay? And from the wafer fab, obviously, the KFAB, we are in the process to finish it up. So I don't really talking about capacity, full capacity, because we try to get as much wafer view as possible before we shut it down. So it's not capacity limitation, we're just full speed. SFAB 1, I would say we're almost fully loaded because we are increasing the capacity of the SFAB, but not now. And after KFAB shutdown, the KFAB equipment will move to SFAB to enlarge the SFAB capacity. So I will say next year, at the beginning of next year, SFAB capacity will increase. And because we shut down in September and move the equipment and then install, codify. So that additional capacity won't start until beginning of next year. Today, current capacity because we start to codify KFAB material, at the same time we'd like to start to view some material to support the customer who currently use KFAB. While we -- when we shut down KFAB, they can start to buy from SFAB. So today, SFAB 1 is at full speed, fully loaded, okay, as a current capacity. Now next year, at the beginning of next year, we'll have some -- we'll have enough additional capacity built by the equipment shipped from KFAB. SFAB 2, we are about...

是的。所以你知道我們說的是 95%；我們假設它已滿載。所以從後端來看，在我看來，我們已經快到了，好嗎？從晶圓廠來看，顯然是 KFAB，我們正在完成它。所以我並不是真的在談論產能，全部產能，因為我們試圖在關閉之前獲得盡可能多的晶圓視圖。所以這不是容量限制，我們只是全速。SFAB 1，我想說我們幾乎滿載了，因為我們正在增加 SFAB 的容量，但不是現在。KFAB停產後，KFAB設備將轉移至SFAB以擴大SFAB產能。所以我會說，明年、明年初，SFAB 產能將會增加。因為我們在 9 月關閉並移動了設備，然後安裝、編碼。因此，額外的產能要到明年初才會開始。今天，目前容量是因為我們開始編纂 KFAB 材料，同時我們希望開始查看一些材料來支援目前使用 KFAB 的客戶。當我們關閉 KFAB 時，他們可以開始從 SFAB 購買。所以今天，SFAB 1 處於全速、滿載狀態，好吧，作為當前容量。明年，明年初，我們將擁有一些——我們將透過從 KFAB 運來的設備建立足夠的額外產能。SFAB 2，我們即將...

91%.

91%。

91%. So SFAB 2 today is fully...

91%。所以今天的 SFAB 2 完全...

Fully loaded to the capacity that they have.

完全裝載到他們擁有的容量。

It's fully loaded to the capacity they have. But that's talking about 6-inch capacity in SFAB 2.

它已經滿載了他們的容量。但這是指 SFAB 2 中的 6 吋容量。

6 inch. Right.

6吋。正確的。

Now 8-inch, we already finished the development. We now codify the products, the process is already codified. Now we start to codify the product. And then after codifying the product, we give the to the customer, and we will start to ramp. So my expectation will be probably end of -- close to end of second quarter we will start to ramp. It depends on customers' acceptance and -- keeping the customer acceptance if we didn't accept, okay? And so I would say, probably the last month of the year may be the one we start to ramp up the production. Okay, that's the current schedule. But basically, the process of development is down, it's codified, now we codify the product.

現在8吋的，我們已經開發完成了。我們現在對產品進行了編碼，流程也已經進行了編碼。現在我們開始對產品進行編碼。然後在對產品進行編碼後，我們將其提供給客戶，然後我們將開始斜坡。因此，我的預期可能是在接近第二季末的時候，我們將開始加速。這取決於客戶的接受度，如果不接受，就保持客戶的接受度，好嗎？所以我想說，今年的最後一個月可能是我們開始提高產量的一個月。好的，這就是目前的時間表。但基本上，開發過程已經結束，它被編碼，現在我們對產品進行編碼。

Great. And then, could you give us where your blended lead times are currently? And whether you see any signs of other ordering from some customers?

偉大的。然後，您能否告訴我們您目前的混合交貨時間是多少？您是否發現某些客戶有其他訂購的跡象？

Some -- any signs of what from the customers?

有些──顧客有什麼跡象嗎？

Overall orders.

整體訂單。

That's orders that would exceed real end demand?

那訂單會超過實際的最終需求嗎？

Well, I can answer you on this one. Since we are very careful, we actually make sure the customer tell us or our disti tell us who is their customer, and we go to check their run rate. And so when they're capacity-constrained, we are supporting issues -- are supporting to our customer, we're going to make sure we only ship the one they really needed. We are not going to ship to our disti for their inventory. And therefore, we -- if they cannot tell us who is their customer and what is their run rate, and we cannot verify, we are not going to accept the order. And so from the double order point of view, I think it's not there, maybe here or there a little bit, but I don't think you're going to see a large double order because we check them out, okay? And the lead time, Mark?

嗯，這個我可以回答你。由於我們非常小心，我們實際上確保客戶告訴我們或我們的經銷商告訴我們誰是他們的客戶，然後我們去檢查他們的運作率。因此，當他們的容量有限時，我們會支持問題 - 為我們的客戶提供支持，我們將確保我們只運送他們真正需要的產品。我們不會向我們的分銷商運送他們的庫存。因此，如果他們不能告訴我們誰是他們的客戶以及他們的運行率是多少，而我們無法驗證，我們就不會接受訂單。因此，從雙重訂單的角度來看，我認為它不存在，也許在這裡或那裡有一點，但我不認為你會看到一個大的雙重訂單，因為我們檢查了它們，好嗎？馬克，交貨時間呢？

Yes, from a lead time perspective, we definitely have some extension in lead times in certain product areas. As Dr. Lu mentioned earlier, some of our newer packages are much tighter, some of our product launches are better than we expected, and we haven't been able to bring on capacity as fast as we like. So we've even seen some of our products reach 20 weeks. But in general, we're probably ranging anywhere in the 6- to 20-week range, so balanced out. I would say very few of it would go out that far. Some places where we just have foundry and package constraint together, where some of those products are going out so far. So I think we have it under control. Certain products we can deliver just based on the decision and so forth. So I don't think it's too bad except for a narrow range of parts.

是的，從交貨時間的角度來看，我們確實在某些產品領域延長了交貨時間。正如盧博士之前提到的，我們的一些新產品包裝要緊得多，我們推出的一些產品比我們預期的要好，而且我們還沒有能夠像我們希望的那樣快地增加產能。所以我們的一些產品甚至達到了 20 週。但總的來說，我們可能會在 6 到 20 週範圍內的任何地方進行調整，因此要保持平衡。我想說，很少人會走那麼遠。在某些地方，我們只是將代工和封裝限制在一起，其中一些產品到目前為止已經上市。所以我認為我們已經控制住了。我們可以根據決定等交付某些產品。所以我認為除了範圍狹窄的部分之外，這還不算太糟。

And we have got materials that may see some shortage, we can resolve it with our purchasing power, our relationship, and that's a difference. And so some of the building material, they see some shortage. But with our purchasing power, our relationship with our vendor, typically, we can solve it, now, not later. So I don't think that's a major issue. But some of the very advanced packaging, which we waited on for more than what we expected or quicker than what we expected, then we will have some problem to support. But the majority, like Mark said, lead time stretched a little bit, but it's not that terrible. And we make sure no double ordering. The order, if they don't need it, we don't accept the order, if they don't need it.

我們有材料，可能會出現一些短缺，我們可以用我們的購買力、我們的關係來解決它，這就是區別。因此，他們看到一些建築材料出現了一些短缺。但憑藉我們的購買力、我們與供應商的關係，通常我們現在就可以解決這個問題，而不是以後。所以我認為這不是一個主要問題。但是一些非常先進的封裝，我們等待的時間比我們預期的要長或比我們預期的要快，那麼我們將遇到一些支援問題。但大多數人，就像馬克所說，交貨時間有點延長，但這並沒有那麼糟。我們確保不會重複訂購。訂單，如果他們不需要，我們不接受訂單，如果他們不需要。

(Operator Instructions) And our next question is 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。

First question if I may. If memory serves me right, at the point in time of the Pericom acquisition, gross margins were maybe in the mid-40% range. Is that accurate to kind of think about where they are now and how you benefited from that mix this quarter?

第一個問題我是否可以。如果我沒記錯的話，在 Pericom 收購時，毛利率可能在 40% 左右。思考一下他們現在的處境以及本季度您如何從這種組合中受益是否準確？

Well, they have 2 kinds of product lines. If you remember, one is the general IC; one is the frequency product, called FCP; the crystal oscillators, [inaudible], those kind of products. And so FCP is somewhere around 40%, and IC is running about 50%, okay? So you are correct, if you average, it's about 45%. But that is -- when we bought it, that's the...

嗯，他們有兩種產品線。如果你還記得的話，一個是通用IC；另一個是通用IC。一是頻率乘積，稱為FCP；晶體振盪器，[聽不清楚]，這類產品。所以 FCP 大約在 40% 左右，IC 大約在 50% 左右，好嗎？所以你是對的，如果你平均的話，大約是45%。但那是——當我們買它的時候，那就是…

It's about what it was.

這是關於它是什麼。

It depends on the growth. And if IC grows faster than FCP product growth then the GP will be higher because that product line is higher GP. And so what we see, right now, is that the IC growing faster than FCP product.

這取決於成長。如果 IC 的成長快於 FCP 產品的成長，那麼 GP 就會更高，因為該產品線的 GP 更高。因此，我們現在看到的是 IC 的成長速度快於 FCP 產品。

Okay. The second question I had was just end markets into the September quarter. The growth of 6% sequentially at the midpoint is much better than seasonality we've seen for the past couple of years. Are there any markets where you would be a consumer, or computing or communications or even a continuation of industrial, where the growth is going to be substantially better than the seasonality you've seen over the past couple of years?

好的。我的第二個問題是九月季度的終端市場。中點 6% 的環比增長比我們過去幾年看到的季節性增長要好得多。您作為消費者、計算或通信，甚至是工業的延續，是否有任何市場的成長將大大好於您在過去幾年中看到的季節性？

Yes, to be honest, I have to say that the marketplace is pretty solid in a lot of areas, okay? I think you're going to see -- North America and Europe are going to continue to have a strong quarter. And so the industrial stays strong, but it will probably get minimized by -- it seems like the consumer people are rolling pretty strong going into the third quarter. And then you have the communications group that's going to start ramping or continue ramping in that period. So I would say in those areas, our automotive number is still growing and it will probably a record again next quarter, but it just won't look as good because the other things are growing faster. So I think everything is in pretty good shape. And then actually our computers are doing relatively well. We have the new stuff coming out on Purley, on the Purley stuff, and some of our Pericom products that are focused on that are doing quite well. So actually we're seeing kind of all boats rising, right, going in the third quarter.

是的，說實話，我不得不說市場在許多領域都相當穩固，好嗎？我想你會看到——北美和歐洲將繼續保持強勁的季度業績。因此，工業保持強勁，但它可能會被最小化——消費者似乎在進入第三季時表現相當強勁。然後你就有了溝通小組，他們將在這段時間內開始擴大或繼續擴大規模。所以我想說，在這些領域，我們的汽車數量仍在增長，下個季度可能會再次創下紀錄，但看起來不會那麼好，因為其他領域增長得更快。所以我認為一切都很好。事實上我們的計算機表現得相對較好。我們在 Purley 上推出了新產品，在 Purley 的產品上，我們的一些專注於這方面的 Pericom 產品都表現得很好。所以實際上我們看到所有的船都在第三季上升，對吧。

And if you want to compare this one, then thinking about third quarter typically for Europe is the -- we call -- the vacation quarter, right? So if you look at most of the years, Europe in the third quarter slow down more, and the other regions is going up. And so that causes the seasonality. But last year and this year, Europe continued to be strong through the third quarter. And therefore, in this -- our overall quarter, third quarter, is better than expectations or better than sequential seasonality, is because Asia normally grows faster in third quarter and Europe was supposed to slow down, not really slow down, then you bring us the growth better than seasonality or better than the past.

如果你想比較這個，那麼想想歐洲的第三季度通常是——我們稱之為——假期季度，對嗎？因此，如果你看看大多數年份，歐洲第三季的放緩幅度更大，而其他地區則有所上升。這就是季節性的原因。但去年和今年，歐洲在第三季持續表現強勁。因此，在這個方面，我們的整體季度，即第三季度，好於預期或好於連續季節性，是因為亞洲通常在第三季度增長更快，而歐洲本來應該放緩，而不是真正放緩，那麼你為我們帶來了成長好於季節性或好於過去。

That's helpful. And just as, I guess, a reminder, does most of the industrial business go through distribution? Or is any of that go on a direct basis to customers?

這很有幫助。我想提醒一下，大部分工業業務都經過分銷嗎？還是其中任何一個都直接面向客戶？

I think some of that goes through there, but our industrial marketplace is North America- and European-based, and North America is about 80% channel and Europe is about 69% channel. So I would say that that lends itself to be a distributor-based business. We do have industrials in Asia, but that's not our strongest numbers in Asia.

我認為其中一部分是透過那裡進行的，但我們的工業市場以北美和歐洲為基礎，北美約佔 80% 的通路，歐洲約佔 69% 的通路。所以我想說，這適合成為一家以分銷商為基礎的業務。我們在亞洲確實有工業，但這不是我們在亞洲最強的數字。

And I'm not showing any further questions in the queue. I would like to turn the call back to Dr. Lu for his final remarks.

我不會在隊列中顯示任何其他問題。我想將電話轉回給盧博士，讓他做最後的演講。

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。

And thank you, ladies and gentlemen, for participating in today's conference. This concludes the program, and you may all disconnect. Have a wonderful evening.

女士們、先生們，感謝你們參加今天的會議。程式到此結束，大家可以斷開連線了。祝您有個美好的夜晚。