Diodes Inc (DIOD) 2019 Q4 法說會逐字稿

Good afternoon, and welcome to Diodes Inc. Fourth Quarter and Full Year 2019 Financial Results Conference Call. (Operator Instructions) As a reminder, this conference call is being recorded today, Tuesday, February 11, 2020,

下午好，歡迎來到 Diodes 公司。2019 年第四季及全年財務業績電話會議。（操作員說明）謹此提醒，本次電話會議將於今天（2020 年 2 月 11 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 Fourth Quarter and 2019 Financial Results Conference Call. I'm Leanne Sievers, President of Shelton Group, Diodes' Investor Relations firm. Joining us today are Diodes' President and CEO, Dr. Keh-Shew Lu; Chief Financial Officer, Brett Whitmire; Vice President of Worldwide Sales and Marketing, Emily Yang; and Director of Investor Relations, Laura Mehrl.

下午好，歡迎參加 Diodes 第四季和 2019 年財務業績電話會議。我是 Leanne Sievers，Diodes 投資人關係公司 Shelton Group 的總裁。今天加入我們的是 Diodes 總裁兼執行長 Keh-Shew Lu 博士；財務長布雷特·惠特米爾；全球銷售與行銷副總裁 Emily Yang；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.

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。

As such, these results are unaudited and subject to revision until the company files its Form 10-K for its fiscal year 2019. 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, including Form 10-K and 10-Q. In addition, any projections as to this company's future performance represent management's estimates as of today, February 11, 2020. Diodes assumes no obligation to update these projections in the future as market conditions may or may not change, except to the extent required by applicable law.

因此，這些結果未經審計，並且在公司提交 2019 財年 10-K 表格之前可能會進行修訂。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，我們建議您參閱公司向美國證券交易委員會提交的文件（包括表格 10-K 和 10-Q）中有關風險和不確定性的更詳細討論。此外，對該公司未來業績的任何預測均代表管理層截至今天（2020 年 2 月 11 日）的估計。由於市場條件可能會或可能不會發生變化，Diodes 不承擔在未來更新這些預測的義務，除非適用法律要求。

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. Also throughout the company's press release and management 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 90 days in the Investor Relations section of Diodes' website at www.diodes.com.

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。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 90 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. 2019 was another record year for Diodes across all financial metrics, generating solid revenue growth as well as increasing profitability and cash flow. Additionally, our record performance in automotive and industrial markets combined with record sales from our Pericom IC products continue to be key contributors to our growth and margin expansion. As a result of our strong cash flow generation, we have also been able to strengthen our balance sheet and significantly reduce long-term debt to below $100 million.

謝謝你，莉安。歡迎大家，感謝您今天加入我們。2019 年，Diodes 的所有財務指標又創歷史新高，實現了穩健的收入成長以及獲利能力和現金流的增加。此外，我們在汽車和工業市場上創紀錄的業績，加上 Pericom IC 產品創紀錄的銷售額，仍然是我們成長和利潤擴張的關鍵因素。由於我們產生了強勁的現金流，我們也能夠強化我們的資產負債表，並將長期債務大幅減少至 1 億美元以下。

Our full year revenue growth of 2.9% once again outperformed our served market, which was down 6.6% in 2019. This consistently above-market performance is the direct result of our targeted sales strategy to serve as a total solution provider, leveraging our expanded product portfolio and broadened customer relationships. Our approach has also resulted in increased market share and content gains across key end equipment, while also addressing new application areas.

我們的全年營收成長 2.9%，再次超過我們所服務的市場，該市場在 2019 年下降了 6.6%。這種持續高於市場的業績是我們作為整體解決方案提供者的目標銷售策略的直接結果，利用我們擴大的產品組合和拓寬的客戶關係。我們的方法也提高了關鍵終端設備的市場佔有率和內容收益，同時也解決了新的應用領域問題。

Looking forward to the coming year. We expect to maintain our strong performance and continued achievement of [record] (corrected by company after the call) results. As we take further steps toward our long-term finance goals of 40% gross margin and 20% operating margin. With automotive and industrial markets approaching to our target of 40% of total revenue, we are well positioned to further drive growth and the margin expansion.

期待來年。我們期望保持強勁的業績並繼續實現[記錄]（由公司在電話會議後更正）結果。隨著我們進一步邁向 40% 毛利率和 20% 營業利潤率的長期財務目標。隨著汽車和工業市場接近我們佔總收入 40% 的目標，我們已做好進一步推動成長和利潤擴張的準備。

Our focus remains on increasing content across the growing end markets of automotive, industrial, high-end servers and storage, 5G as well as IOT.

我們的重點仍然是在汽車、工業、高階伺服器和儲存、5G 以及物聯網等不斷成長的終端市場中增加內容。

Before I turn the call over to Brett, I would like to take a moment to comment about the coronavirus outbreak in China. First and foremost, our top priority is our people, and Diodes is taking proactive measures to protect the safety, health and well-being of our global associates as well as their families and the communities. Brett will discuss this further as part of the first quarter 2020 outlook.

在我把電話轉給布雷特之前，我想花點時間評論一下中國的冠狀病毒爆發。首先也是最重要的是，我們的首要任務是我們的員工，Diodes 正在採取積極措施來保護我們全球員工及其家人和社區的安全、健康和福祉。Brett 將在 2020 年第一季展望中進一步討論這個問題。

Additionally, I would like to provide a brief update on our proposed acquisition of Lite-On Semiconductor. As we announced in January, Lite-On Semiconductor approved a resolution in which they sold more than half of their holdings of On-Bright Electronics or 16.5% of outstanding to Orthosie, an entity in which On-Bright will become a wholly-owned subsidiary. This stock [transaction] (corrected by company after the call) was completed on January 14 at NTD 221 per share. Upon approval and the completion of the merger between On-Bright and Orthosie, Lite-On Semiconductor's remaining 14.69% of On-Bright shares will be exchanged for NTD 230 per share on the record day of the merger. As we stated in our announcement, these actions were taken in order to help facilitate the review by the relevant Chinese authorities. We remain confident our acquisition of Lite-On Semiconductor will close as planned once the final regulatory approvals have been secured, which we anticipate will be in the second half of this year.

此外，我想簡單介紹一下我們擬收購光寶半導體的最新情況。正如我們在一月份宣布的那樣，光寶半導體批准了一項決議，將其所持On-Bright Electronics 一半以上的股份或已發行股份的16.5% 出售給Orthosie，On-Bright 將成為該實體的全資子公司。本次股票【交易】（經公司催收後更正）於1月14日以每股新台幣221元完成。On-Bright 與 Orthosie 合併完成後，光寶半導體剩餘 14.69% On-Bright 股份將於合併登記日以每股新台幣 230 元交換。正如我們在公告中所述，採取這些行動是為了幫助促進中國有關當局的審查。我們仍然相信，一旦獲得最終的監管批准，我們對光寶半導體的收購將按計劃完成，我們預計這將在今年下半年完成。

With that, let me now turn the call over to Brett to discuss our fourth quarter and full year financial results, and our first quarter 2020 guidance in more detail.

現在，讓我將電話轉給 Brett，詳細討論我們第四季和全年的財務業績，以及我們 2020 年第一季的指導。

Thanks, Dr. Lu, and good afternoon, everyone. As part of my financial review today, I will focus my comments on the sequential change for each of the line items and would refer you to our press release for a more detailed review of our results as well as the year-over-year and full year comparisons. Revenue for the fourth quarter of 2019 was $301.2 million as compared to $323.7 million in the third quarter of 2019. For the full year 2019, revenue was a record $1.25 billion, an increase of 2.9% from $1.21 billion in 2018 and well over the growth of our served markets.

謝謝盧博士，大家下午好。作為今天財務審查的一部分，我將集中評論每個項目的連續變化，並請您參閱我們的新聞稿，以更詳細地審查我們的業績以及同比和全面的業績。年比較。2019 年第四季的營收為 3.012 億美元，而 2019 年第三季的營收為 3.237 億美元。2019 年全年營收達到創紀錄的 12.5 億美元，比 2018 年的 12.1 億美元成長 2.9%，遠遠超過我們所服務市場的成長。

Gross profit for the fourth quarter was $109.4 million or 36.3% of revenue compared to the third quarter 2019 of $122 million or 37.7% of revenue. For the full year, gross profit increased 7% to $465.8 million or 37.3% of revenue as compared to $435.3 million or 35.9% of revenue in the prior year. Both gross profit and gross margin were records.

第四季的毛利為 1.094 億美元，佔營收的 36.3%，而 2019 年第三季的毛利為 1.22 億美元，佔營收的 37.7%。全年毛利成長 7%，達到 4.658 億美元，佔營收的 37.3%，而前一年為 4.353 億美元，佔營收的 35.9%。毛利和毛利率均創歷史新高。

GAAP operating expenses for the fourth quarter of 2019 were $48.1 million or 16% of revenue, and on a non-GAAP basis were $65.2 million or 22% of revenue, which excluded a $24.4 million pretax gain on the sale of land, $4.5 million of amortization of acquisition-related intangible asset expenses, $1.6 million loss on asset impairment and a $1.2 million acquisition-related costs. GAAP operating expenses in the prior quarter were $73.3 million or 22.7% of revenue. Total other expense amounted to approximately $1.7 million for the quarter, including $2.4 million of foreign currency losses, $1.7 million of interest expense, partially offset by $2 million of other income and $409,000 of interest income. Income before taxes and noncontrolling interest in the fourth quarter 2019 was $59.6 million compared to $48.7 million in the previous quarter.

2019 年第四季的GAAP 營運費用為4,810 萬美元，佔收入的16%；以非GAAP 計算，營運費用為6,520 萬美元，佔收入的22%，其中不包括出售土地的2,440 萬美元稅前收益、450 萬美元的土地銷售收益。與收購相關的無形資產費用攤銷、160 萬美元的資產減損損失和 120 萬美元的收購相關成本。上一季的 GAAP 營運費用為 7,330 萬美元，佔營收的 22.7%。本季其他費用總額約為 170 萬美元，包括 240 萬美元的外匯損失、170 萬美元的利息費用，部分被 200 萬美元的其他收入和 409,000 美元的利息收入抵消。2019 年第四季稅前和非控股權益前收入為 5,960 萬美元，上一季為 4,870 萬美元。

Turning to income taxes. Our effective income tax rate for the fourth quarter was approximately 20.2%. GAAP net income for the fourth quarter 2019 was $47.2 million or $0.90 per diluted share compared to GAAP net income of $38.1 million or $0.73 per diluted share in the third quarter 2019. The share count used to compute GAAP diluted EPS for the fourth quarter 2019 was 52.1 million shares. GAAP net income for the full year 2019 was a record $153.3 million or $2.96 per diluted share compared to $104 million or $2.04 per diluted share in 2018. Non-GAAP adjusted net income in the fourth quarter was $33.8 million or $0.65 per diluted share, which excluded net of tax, $19.2 million gain on land sales, $3.7 million on noncash acquisition-related intangible asset amortization costs and $1.3 million of asset impairment charges. This compares to non-GAAP adjusted net income of $41.9 million or $0.81 per diluted share in third quarter 2019. Non-GAAP adjusted net income for the full year 2019 increased 24.6% to a record of $151.1 million or $2.91 per diluted share compared to $121.3 million or $2.38 per diluted share in 2018.

轉向所得稅。我們第四季的有效所得稅率約為 20.2%。2019 年第四季的 GAAP 淨利潤為 4,720 萬美元，即稀釋後每股 0.90 美元，而 2019 年第三季的 GAAP 淨利潤為 3,810 萬美元，即稀釋後每股 0.73 美元。用於計算 2019 年第四季 GAAP 攤薄每股盈餘的股票數量為 5,210 萬股。2019 年全年 GAAP 淨利潤達到創紀錄的 1.533 億美元，即稀釋後每股收益 2.96 美元，而 2018 年為 1.04 億美元，即稀釋後每股收益 2.04 美元。第四季非公認會計準則調整後淨利為3,380 萬美元，即每股攤薄收益0.65 美元，其中不含稅、土地銷售收益1,920 萬美元、非現金收購相關無形資產攤提成本370 萬美元、資產減損費用130 萬美元。相比之下，2019 年第三季非 GAAP 調整後淨利為 4,190 萬美元，即稀釋後每股收益 0.81 美元。2019 年全年非 GAAP 調整後淨利成長 24.6%，達到創紀錄的 1.511 億美元，即稀釋後每股收益 2.91 美元，而 2018 年為 1.213 億美元，即稀釋後每股收益 2.38 美元。

EBITDA for the fourth quarter was $88.3 million or 29.3% of revenue compared to $78.3 million or 24.2% of revenue in the prior quarter. EBITDA for the full year improved over 20% to a record $313.6 million or 25.1% of revenue compared to $261.1 million or 21.5% of revenue last year. We have included in our earnings release a reconciliation of GAAP net income to non-GAAP adjusted net income and GAAP net income to EBITDA, which provides additional details. Cash flow generated from operations was $52.1 million for the fourth quarter 2019 and $229.8 million for the full year. Free cash flow was $29.7 million for the fourth quarter, which included $22.4 million for capital expenditures and $131.3 million for the full year, which included $98.5 million of capital expenditures or 7.9% of revenue. Net cash flow in the fourth quarter was a positive $39.8 million, which includes the paydown of $22.6 million of long-term debt in the fourth quarter and a positive $17.7 million for the full year, including pay down of approximately $117.3 million of long-term debt during the full year 2019.

第四季 EBITDA 為 8,830 萬美元，佔營收的 29.3%，而上一季為 7,830 萬美元，佔營收的 24.2%。全年 EBITDA 成長超過 20%，達到創紀錄的 3.136 億美元，佔營收的 25.1%，而去年為 2.611 億美元，佔營收的 21.5%。我們在收益報告中納入了 GAAP 淨利潤與非 GAAP 調整後淨利潤以及 GAAP 淨利潤與 EBITDA 的調整表，其中提供了更多詳細資訊。2019 年第四季營運產生的現金流為 5,210 萬美元，全年營運產生的現金流為 2.298 億美元。第四季自由現金流為 2,970 萬美元，其中包括 2,240 萬美元資本支出，全年自由現金流為 1.313 億美元，其中資本支出為 9,850 萬美元，佔收入的 7.9%。第四季淨現金流為正 3,980 萬美元，其中包括第四季償還 2,260 萬美元的長期債務，全年淨現金流為 1,770 萬美元，其中包括償還約 1.173 億美元的長期債務2019年全年債務。

Turning to the balance sheet. At the end of fourth quarter, cash and cash equivalents plus short-term investments totaled approximately $263 million. Working capital was $524.5 million and long-term debt, including the current portion, was $98 million. In terms of inventory, at the end of the fourth quarter, total inventory days increased to 112 in the quarter compared to 104 last quarter as we prepared for the Chinese New Year. Total inventory dollars amounted to approximately $236.5 million, which reflects a $3.2 million increase in finished goods and a $2.4 million increase across raw materials and work in process. Finished goods inventory days was 29 in the quarter compared to 27 in the third quarter of 2019. Capital expenditures on a cash basis for the fourth quarter 2019 were $22.4 million or 7.4% of revenue and $98.5 million or 7.9% of revenue for the full year. We expect CapEx for the full year 2020 to remain within our target model of 5% to 9% of revenue.

轉向資產負債表。截至第四季末，現金和現金等價物加上短期投資總計約2.63億美元。營運資金為 5.245 億美元，長期債務（包括當前部分）為 9,800 萬美元。庫存方面，四季末，由於我們為過年做準備，本季總庫存天數從上季的 104 天增加至 112 天。庫存總額約為 2.365 億美元，其中成品增加了 320 萬美元，原材料和在製品增加了 240 萬美元。本季成品庫存天數為 29 天，而 2019 年第三季為 27 天。2019 年第四季以現金為基礎的資本支出為 2,240 萬美元，佔營收的 7.4%；全年資本支出為 9,850 萬美元，佔營收的 7.9%。我們預計 2020 年全年的資本支出將保持在收入的 5% 至 9% 的目標模型內。

Now turning to our outlook. For the first quarter of 2020, we expect revenue to be approximately $290 million, plus or minus 3%. At the midpoint, this represents a reduction of approximately 3.7% sequentially, which is better than the typical seasonality. We expect GAAP gross margin to be 35.0%, plus or minus 1%. These guidance ranges reflect the delayed start to manufacturing production following the extended Chinese New Year holiday, due to the coronavirus outbreak in China. All production, including wafer fabs and assembly test facilities in China resumed on February 10. But we anticipate it to take longer to return to full production. At this time, it is difficult for us to fully determine the potential impact to the supply chain or the customer demand disruption resulting from the prevailing crisis.

現在轉向我們的展望。2020 年第一季度，我們預計營收約為 2.9 億美元，上下浮動 3%。在中點，這意味著環比下降約 3.7%，這比典型的季節性要好。我們預期 GAAP 毛利率為 35.0%，上下浮動 1%。這些指導範圍反映了由於中國冠狀病毒的爆發，農曆新年假期延長後製造業生​​產的開始延遲。包括中國晶圓廠和組裝測試設施在內的所有生產已於 2 月 10 日恢復。但我們預計需要更長的時間才能恢復全面生產。目前，我們很難完全確定當前危機對供應鏈的潛在影響或客戶需求的中斷。

As a reminder, Diodes does not have a manufacturing facility in the affected areas of Wuhan and Hubei province as our primary facilities are located in Shanghai and Chengdu. Similar to many other companies, we will continue to closely monitor the situation.

需要提醒的是，Diodes 在武漢和湖北省的受影響地區沒有製造工廠，因為我們的主要工廠位於上海和成都。與許多其他公司一樣，我們將繼續密切關注事態發展。

Continuing with our first quarter guidance, non-GAAP operating expenses, which are GAAP operating expenses adjusted for amortization of acquisition-related intangible assets are expected to be approximately 22.5% of revenue, plus or minus 1%. We expect net interest expense to be approximately $2 million. Our income tax rate is expected to be 20%, plus or minus 3%, and shares used to calculate diluted EPS for the first quarter are anticipated to be approximately $52.9 million. Please note that purchasing accounting adjustments of $3.7 million, after-tax, for Pericom and previous acquisitions are not included in these non-GAAP estimates.

繼續我們第一季的指導，非 GAAP 營運費用（即根據收購相關無形資產攤銷調整的 GAAP 營運費用）預計約為收入的 22.5%，上下浮動 1%。我們預計淨利息支出約為 200 萬美元。我們的所得稅稅率預計為 20%，正負 3%，用於計算第一季攤薄每股收益的股票預計約為 5,290 萬美元。請注意，這些非 GAAP 估算中不包括 Pericom 和先前收購的 370 萬美元稅後購買會計調整。

With that said, I now turn the call over to Emily Yang.

話雖如此，我現在將電話轉給艾蜜莉楊。

Thank you, Brett, and good afternoon. As Dr. Lu and Brett mentioned, we had a record year in 2019, with revenue growth once again outperforming our served markets. Looking more closely at the fourth quarter, revenue reflecting the seasonal softness and inventory adjustments that are typical of our industry at the end of the year. POS was down slightly, mainly driven by the slowdown during Christmas holiday in North America and Europe. Distributor inventory in terms of weeks was flat in the fourth quarter, which is within our normal range of 11 to 14 weeks. We expect distributor inventories to remain within our normal range of 11 to 14 weeks in the near term.

謝謝你，布雷特，下午好。正如陸博士和布雷特所提到的，2019 年是我們創紀錄的一年，收入成長再次超過我們所服務的市場。更仔細地觀察第四季度，收入反映了年底我們行業典型的季節性疲軟和庫存調整。POS小幅下跌，主要是受北美和歐洲聖誕節假期放緩的推動。第四季經銷商庫存週數持平，處於我們 11 至 14 週的正常範圍內。我們預計經銷商庫存近期將保持在 11 至 14 週的正常範圍內。

Looking at the global sales for 2019, Asia represented 75% of revenue, Europe 15% and North America 10%. In terms of our end market distribution for the whole year, the industrial market represented 28% of total revenue; consumer, 23%; communication, 23%; computing, 16%; and automotive, 10% of revenue. Now let me review the end markets in greater detail.

從2019年的全球銷售額來看，亞洲佔營收的75%，歐洲佔15%，北美佔10%。從全年終端市場分佈來看，工業市場佔總收入的28%；消費者，23%；溝通，23%；計算，16%；和汽車業，佔收入的 10%。現在讓我更詳細地回顧一下終端市場。

For the automotive market, we continue to see significant growth in this market as we capture both increasing market share and content gains despite the overall challenges with a decreased unit output of autos during the year. Revenue in this end market grew more than 14% in 2019 to 10% of the total revenue, representing a 29.4% CAGR since 2013.

對於汽車市場，儘管今年面臨汽車單位產量下降的整體挑戰，但我們仍然看到該市場的顯著增長，因為我們獲得了不斷增長的市場份額和內容收益。該終端市場的收入在 2019 年增長了 14% 以上，佔總收入的 10%，自 2013 年以來複合年增長率為 29.4%。

Our ability to secure an increasing number of design wins has been a key factor to our success, in particular, for application in Connected Driving, including ADAS, Telematics and Infotainment as a result of the record increase of electronics in today's highly connected cars. In addition, robust ESD protection is becoming increasingly more important and our Production Products offer high reliability and high-performance solutions in ESD protection, that covers the entire spectrum for Connected Driving applications.

我們獲得越來越多設計勝利的能力是我們成功的關鍵因素，特別是在互聯駕駛應用領域，包括ADAS、遠端資訊處理和資訊娛樂，這是由於當今高度互聯的汽車中的電子設備數量創紀錄地增加。此外，強大的 ESD 保護變得越來越重要，我們的生產產品提供高可靠性和高效能的 ESD 保護解決方案，涵蓋了連網駕駛應用的整個範圍。

We are also seeing continued success with our proprietary SBR technology. These products are optimized for high surge capability to ensure greater protection against negative spikes and inductive load surges, thereby yielding increasing ruggedness and reliability in often noisy automotive applications. This product series is suitable for a wide range of applications in Connected Driving, Powertrain, Battery Management, Lighting, Body Control and Central Information Display. Additionally, we continue to expand our content in Comfort, Safety and Lighting area. Our new Zener diode product family is gaining momentum in automotive lighting applications, and we also have strong momentum for Bipolar transistors in lighting, LiDAR, Radar and Wireless charging.

我們也看到我們專有的 SBR 技術不斷取得成功。這些產品針對高浪湧能力進行了優化，以確保針對負尖峰和感性負載浪湧提供更好的保護，從而在通常嘈雜的汽車應用中提高耐用性和可靠性。此產品系列適用於連網駕駛、動力系統、電池管理、照明、車身控制和中央資訊顯示等領域的廣泛應用。此外，我們繼續擴展舒適、安全和照明領域的內容。我們的新齊納二極體產品系列在汽車照明應用中勢頭強勁，雙極電晶體在照明、雷射雷達、雷達和無線充電領域也有著強勁的發展勢頭。

Also in the automotive space, Diodes' leading PCI Express Gen 2 Packet Switch solutions were broadly adopted in the next-generation telematics designs and will start to ramp this year.

同樣在汽車領域，Diodes 領先的 PCI Express Gen 2 分組交換解決方案在下一代遠端資訊處理設計中得到廣泛採用，並將於今年開始推廣。

During the quarter, we also continued to expand our leadership position by releasing additional Pericom products, including a PCI Express Gen 2 packet switch family. That meets the AEC-Q100 Grade 2 for higher temperature requirements and low standby power consumption to satisfy the "always on" requirement.

在本季度，我們也透過發布其他 Pericom 產品（包括 PCI Express Gen 2 封包交換器系列）來繼續擴大我們的領導地位。滿足 AEC-Q100 Grade 2 的更高溫度要求和低待機功耗，以滿足「始終開啟」的要求。

In the industrial end market, revenue grew 14.7% for the full year over 2018, representing a 6-year CAGR of 14.6%. Brushless DC motor and LED lightings are key industrial applications for Diodes MOSFET products. We have addressed these applications using our SGT MOSFET technology for low power loss, as well as normal density Trench MOS technology for better safe operating areas. We are also addressing e-meter applications with our SASP and wide Vin LDOs. With the rapid adoption of high-speed interfaces across multiple end applications in the IoT industry, ESD protection is increasingly more important for these data links. Diodes' data line platform features ultralow capacitance with industry leading surge handling and ESD protection characteristics.

在工業終端市場，營收較2018年全年增長14.7%，6年複合年增長率為14.6%。無刷直流馬達和 LED 照明是 Diodes MOSFET 產品的關鍵工業應用。我們使用 SGT MOSFET 技術來解決這些應用問題，以實現低功耗，並使用正常密度 Trench MOS 技術來實現更好的安全操作區域。我們也利用 SASP 和寬 Vin LDO 解決電子電錶應用問題。隨著物聯網產業多個終端應用中高速介面的快速採用，ESD 保護對於這些資料鏈路變得越來越重要。Diodes 的數據線平台具有超低電容以及業界領先的浪湧處理和 ESD 保護特性。

For the Industrial DC fans and Lighting markets, our SBR and Schottky products offer cost performance in a high-temperature operating environment that is ideal for these applications. Schottky diodes offer low and stable leakage under the high thermal stress, while our rectifiers package in the ultra-thin CSP package are growing in popularity for the space saving in DC Fan applications. We're also seeing our Latch and Omnipolar Hall Sensors gaining momentum in security cameras, fans, E-bikes and power tool applications.

對於工業直流風扇和照明市場，我們的 SBR 和肖特基產品在高溫操作環境中提供性價比，非常適合這些應用。肖特基二極體在高熱應力下可提供低且穩定的漏電流，而我們的超薄 CSP 封裝整流器封裝因節省直流風扇應用中的空間而越來越受歡迎。我們還看到我們的鎖存器和全極霍爾感測器在安全攝影機、風扇、電動自行車和電動工具應用中獲得了發展勢頭。

Turning to consumer space, quick charges and direct charges have gained momentum in the response to the market need to reduce the charging time of batteries. The ultimate solution of USB-Power Delivery is to propel the output power to a higher level. With Diodes' advanced, SGT technology, 40-100V MOSFETs offer synchronized rectification and secondary synchronous rectification to support a wide voltage range of adapted topologies. Additionally, wireless power charging is also gaining momentum because of the convenience of use. To increase the wireless transmitter power, 20- to 30-volt MOSFETs in smaller packages are required, which Diodes offers. Also in the consumer market, Diodes protection products, including TVS, DC-DC, LDO, SBR and Schottky families are gaining traction in panels.

轉向消費領域，為了滿足市場對減少電池充電時間的需求，快速充電和直充已獲得發展動能。USB-Power Delivery的最終解決方案是將輸出功率推向更高水平。憑藉 Diodes 先進的 SGT 技術，40-100V MOSFET 提供同步整流和次級同步整流，以支援寬電壓範圍的自適應拓撲。此外，無線充電由於使用方便也獲得了發展勢頭。為了增加無線發射器功率，需要採用較小封裝的 20 至 30 伏特 MOSFET，Diodes 提供了這種產品。同樣在消費市場，Diodes 保護產品（包括 TVS、DC-DC、LDO、SBR 和肖特基系列）在面板領域越來越受歡迎。

In the communication market, mobile communications have profoundly changed people's life with a 5G emerging as a key solution to meet the significant speed upgrade and large bandwidth requirements. Diodes seeing increasing demand in this area for our products that help improve 5G amplifier performance, boost power in the base stations, and also save on power consumption.

在通訊市場，行動通訊深刻改變了人們的生活，5G的出現成為滿足速度大幅提升和大頻寬需求的關鍵解決方案。Diodes 看到該領域對我們產品的需求不斷增長，這些產品有助於提高 5G 放大器性能、提高基地台功率並節省功耗。

Diodes PCI Express Gen 2 packet switch family are designed into 5G mobile routers and 5G CPE home routers. Diodes also released our next-generation MIPI 2:1 switch for cell phone applications. With higher resolution capability and superior performance under cross-talk further delivers the highest system performance for camera picture quality supporting 5G phones, which are expected to hit the mainstream market in 2020.

Diodes PCI Express Gen 2 封包交換器系列設計用於 5G 行動路由器和 5G CPE 家庭路由器。Diodes 也發布了適用於手機應用的新一代 MIPI 2:1 開關。憑藉更高的解析度能力和卓越的串擾性能，進一步為支援5G手機的相機畫質提供最高的系統性能，預計將於2020年進入主流市場。

Lastly, in the computing market, our SASP products saw a resurgence of revenue growth in notebook PC applications in GPP rectifiers and bridge rectifiers, as well as TVS products. As notebook and PC markets continue to adopt USB Type-C, this application is emerging as the next big growth engine for Power Protection. We have current solutions to protect all pins on Type C connectors and are also developing custom solutions for customer-specific usage on Type C applications.

最後，在計算市場，我們的SASP產品在筆記型電腦應用中的GPP整流器和橋式整流器以及TVS產品中看到了收入成長的復甦。隨著筆記型電腦和 PC 市場繼續採用 USB Type-C，該應用正在成為電源保護的下一個重要成長引擎。我們擁有目前的解決方案來保護 C 型連接器上的所有引腳，並且還在開發針對 C 型應用中客戶特定用途的客製化解決方案。

Additionally, Diodes comprehensive product portfolio for docking stations continues to provide customers solutions for interface and switching needs. Our newly released PCI Express Gen4 crossbar switches offer the best performance with high bandwidth and low signal loss, while also being designed-in for connecting the notebook to dock port at major OEMs.

此外，Diodes 全面的塢站產品組合持續為客戶提供滿足介面和開關需求的解決方案。我們新發布的 PCI Express Gen4 交叉開關可提供最佳效能、高頻寬和低訊號損失，同時也設計用於將筆記型電腦連接到主要 OEM 的擴充座連接埠。

In summary, our achievement of record annual results and growth that exceeds our served markets is further testament to the success of our total solution sales approach that has resulted in market share gains and content expansion at key customers.

總而言之，我們取得了創紀錄的年度業績和超過我們所服務市場的成長，這進一步證明了我們整體解決方案銷售方法的成功，這種方法導致了主要客戶的市場份額增加和內容擴展。

We are well positioned to continue driving further growth and margin expansion in the coming year and looking forward to reporting our ongoing success and milestone achievements towards our long-term financial goals.

我們已做好準備，在來年繼續推動進一步成長和利潤率擴張，並期待報告我們在實現長期財務目標方面所取得的持續成功和里程碑式的成就。

With that, we have now open the floor to questions. Operator?

至此，我們現在開始提問。操作員？

(Operator Instructions) And our first question comes from the line of Gary Mobley from Wells Fargo Securities.

（操作員說明）我們的第一個問題來自富國銀行證券公司的加里‧莫布里（Gary Mobley）。

I want to start off by asking about your Q1 guide. It sounds as if your inventory -- your own inventory days were sufficiently high enough heading into the -- as you started the first quarter. And so therefore, I'm assuming that the fewer workdays among your employee base is not really having too much of an impact on your sales outlook for the first quarter, but really more so on the gross margin side. And correct me if I'm wrong there. But my question is, can we see some reversal of this impact in the second quarter, as presumably your manufacturing utilization rates could be higher in the second quarter, and thus, some fairly sharp improvement in the overall gross margin?

我想先詢問您的 Q1 指南。聽起來好像你的庫存——你自己的庫存天數在進入第一季時就足夠高了。因此，我假設您的員工群體中工作日的減少並不會真正對您第一季的銷售前景產生太大影響，但對毛利率方面的影響更大。如果我錯了，請糾正我。但我的問題是，我們能否在第二季看到這種影響出現一些逆轉，因為第二季你們的製造利用率可能會更高，整體毛利率會出現相當大的改善？

Okay, Gary. Let me answer those questions. First, you are 100% correct. In the end of -- in the fourth quarter last year, because we know we're going to have a Chinese New Year slowdown as usual, so we built up additional finished goods inventory to prepare for Chinese New Year. And then -- due to -- unfortunately, due to the coronavirus, our factory in Chinese -- in China actually slowed down the opening for more than we expected. Okay? And we plan -- we don't -- typical -- we only plan 3 to 1-week shutdown and this time, we actually get over 2 weeks of the Chinese New Year shutdown. So it's fortunate we have finished goods buildup. And therefore, if you look at our guidance of $290 million it already reflects the manufacturing slowdown and the inventory flush and all those reflect this $290 million.

好的，加里。讓我來回答這些問題。首先，你是100%正確的。去年第四季末，因為我們知道農曆新年將像往常一樣放緩，所以我們建立了額外的成品庫存，為農曆新年做準備。然後，不幸的是，由於冠狀病毒，我們在中國的工廠實際上放慢了開業速度，其速度超出了我們的預期。好的？我們計劃 - 我們沒有 - 通常 - 我們只計劃 3 到 1 週的停工，而這一次，我們實際上有超過 2 週的農曆新年停工時間。所以幸運的是我們已經完成了貨物的累積。因此，如果你看我們 2.9 億美元的指導，它已經反映了製造業放緩和庫存沖刷，所有這些都反映了這 2.9 億美元。

The reason we put up a wider range of the revenue changing from typically plus/minus 2% to plus/minus 3%. It was due to -- we really still cannot feel out or we still don't know the supply chain of our building material, most of them coming from outside of China, but some of the supply chain material is coming locally and that we don't know probably happen. Okay. Even we have some inventory, but we still cannot feel out what will be the whole picture. And most uncertainty is our customer, because our customer gets the same reaction or the same restriction such that they cannot open until February 10. And some of the factories and some of our customers, even extend that shutdown. And if you have a factory in Wuhan, that's still not going to be happen. And so from all these ones, we opened up our range for the revenue.

我們將收入範圍從通常的正負 2% 更改為正負 3% 的原因。這是因為——我們真的仍然摸不出來，或者我們仍然不知道我們的建築材料的供應鏈，其中大部分來自中國以外的地方，但一些供應鏈材料來自本地，我們不知道可能會發生。好的。即使我們有一些庫存，但我們仍然無法預測整個情況。最不確定的是我們的客戶，因為我們的客戶得到了相同的反應或相同的限制，以至於他們要到 2 月 10 日才能開業。一些工廠和我們的一些客戶甚至延長了停工時間。如果你在武漢有一家工廠，那仍然不會發生。因此，從所有這些方面，我們擴大了收入範圍。

Then you're talking about gross margin. The gross margin because of the extended shutdown, and therefore we guide for 35%. And but since -- from that point of view, we're thinking we already know or at least we can feel up how many people return and what kind of run rate going up from week-to-week, how many people will return to work from week-to-week. Therefore, we guide -- that's usual, plus/minus 1%. And so basically, this is the reason we give that kind of guidance, we already -- we already can anticipate the revenue and the wafer fab and the assembly function. And I think in my speech, we already tell you, we do not have our factory in Wuhan or Hubei province. And most key manufacturing factory is in Shanghai, including wafer fab and assembly, and in Chengdu those are the key manufacturing areas. And virtually our wafer fab is not that much off-- is supplied by China, but it's not -- we still have a lot of wafer support from like OFAB in Oldham. We have foundry from Japan, Dongbu and Taiwan NextChip and MegaChips in Korea. Okay. And then Vanguard and NextChip in Taiwan and even Finteks in Japan. So we have a lot of -- we're full of supply. So our SFAB is a very small portion of our wafer fab support. And it is more concentrated in China. Okay. And so -- but from the guidance point of view, we are still better than seasonality, even if we are down 3.7%, still better than seasonality and is already put into consideration of the factory slowdown. The only thing we don't know will be supply chain and customer requirements.

然後你談論的是毛利率。毛利率因為停產時間延長，因此我們指引為35%。但從這個角度來看，我們認為我們已經知道或至少我們可以感覺到有多少人返回，以及每週的運行率上升了多少，有多少人會返回每週工作一次。因此，我們的指導是——通常情況下，加/減 1%。基本上，這就是我們給出這種指導的原因，我們已經可以預測收入、晶圓廠和組裝功能。我想在我的演講中，我們已經告訴你們，我們在武漢或湖北省沒有工廠。最關鍵的製造工廠在上海，包括晶圓廠和組裝，而成都則是關鍵的製造區域。事實上，我們的晶圓廠並沒有那麼糟糕——是由中國供應的，但事實並非如此——我們仍然得到了來自奧爾德姆 OFAB 等的大量晶圓支持。我們有來自日本、東部和台灣的NextChip和韓國的MegaChips的代工廠。好的。然後是台灣的 Vanguard 和 NextChip，甚至是日本的 Finteks。所以我們有很多——我們的供應充足。因此，我們的 SFAB 只是我們晶圓廠支援的一小部分。而且更集中在中國。好的。所以——但從指導的角度來看，我們仍然好於季節性，即使我們下降了 3.7%，仍然好於季節性，並且已經考慮到工廠放緩。我們唯一不知道的是供應鏈和客戶要求。

Now you are talking about -- yes. And then you -- after the second quarter, if the demand starts getting strong, it is really the demand. We should have enough capacity and we already know by end of 1Q, our workers should be already back to normal.

現在你正在談論——是的。然後，在第二季之後，如果需求開始變得強勁，那就是真正的需求。我們應該有足夠的產能，我們已經知道到第一季末，我們的工人應該已經恢復正常。

See today, our CAT today is already -- manpower is already up to 85%. Now SAT in Shanghai, yes, it's only 45%, but they already have a control to know who will be back, who cannot be back, who will be -- need to be quarantined at home.

今天看，我們今天的CAT已經－人力已經達到85%了。現在上海的SAT，是的，只有45%，但他們已經有了控制權，知道誰會回來，誰不能回來，誰需要在家隔離。

So we contact with all our employees to understand where they are and how -- when can they go back to work. So we believe by end of this month, February, we should be up to 60%, 70%. Then by end of March, we should be up to 90%. So I think you are right. In the second quarter, we should be fully up to running the manufacturing. Then the only question would be, if our customer is fully back or not. So that is the one we don't know.

因此，我們與所有員工聯繫，了解他們在哪裡以及如何、何時可以重返工作崗位。所以我們相信到這個月底，也就是二月，我們應該會達到 60%、70%。然後到3月底，我們應該會達到90%。所以我認為你是對的。在第二季度，我們應該完全可以投入生產。那麼唯一的問題是我們的客戶是否完全回來。所以這是我們不知道的。

Okay. Brett, a couple of quick questions for you. I noticed your first quarter non-GAAP OpEx guidance is flat sequentially. And correct me if I'm wrong, but don't you normally see some sort of a merit increase in the second fiscal quarter? And could you sort of quantify what that may be? And as well, what your full year 2020 OpEx growth may look like if there's any growth at all?

好的。布雷特，有幾個簡單的問題想問你。我注意到你們第一季非 GAAP 營運支出指引與上一季持平。如果我錯了，請糾正我，但您通常不會在第二財季看到某種績效成長嗎？你能量化一下這可能是什麼嗎？另外，如果有任何成長的話，您 2020 年全年的營運支出成長可能會是什麼樣子？

Well, actually, let me answer that, Brett. Okay. We have 2 -- we have 2 different time periods for the compensation increase. In the January, then is China making function and officer compensation increase, then in July first will be the compensation increase for the rest of the people. Okay. So the impact for the gross margin actually in the 1Q, you can see some, but is not a major significant GP burden. The GP burden most is because of the extended Chinese New Year slowdown and especially this year, that's more than usual slowdown. Okay. And that is what holds our GP and another real cause of the GP is the revenue because the revenue down, then your GP will be down because of building rate in our factory, typically will be slowed down, so utilization will not be full. Okay?

好吧，實際上，讓我來回答這個問題，布雷特。好的。我們有 2 個——我們有 2 個不同的時間段來提高薪資。1月份，中國將增加職能和官員的薪酬，然後在7月份，首先將增加其餘人員的薪酬。好的。因此，對於毛利率的影響實際上在第一季度，你可以看到一些，但並不是一個重大的 GP 負擔。全科醫生的負擔最大是因為農曆新年經濟放緩，尤其是今年，成長比往年更嚴重。好的。這就是我們 GP 的原因，而 GP 的另一個真正原因是收入，因為收入下降，那麼你的 GP 就會因為我們工廠的建設速度而下降，通常會減慢，因此利用率不會充分。好的？

Okay. What about tax rate for the year? You're going to just stay around this 20% mark that you're starting the year with?

好的。那一年的稅率呢？您會保持在年初的 20% 左右嗎？

Yes, I think 20% is a good assumption.

是的，我認為 20% 是一個很好的假設。

Our next question comes from the line of Shawn Harrison from Longbow Research.

我們的下一個問題來自長弓研究中心的肖恩·哈里森。

Is my math right that the extra week of shutdown is maybe costing you within the guidance, $2.5 million or $3 million of cost. Is that the right way to think about it on a dollar basis that, that type of drag wouldn't repeat itself into the June quarter?

我的計算是否正確，額外一周的關閉可能會在指導範圍內花費 250 萬美元或 300 萬美元的成本。以美元為基礎考慮這種拖累不會在六月季度重演，這是正確的方式嗎？

I really don't know on that. Because it depends on the mix, if from a revenue point of view, it depends on the mix. And we do have the inventory we can ship it out. Okay? So I don't have that number tied to the dollar. Okay, and I do -- I remember that number, we try to ship it out from the -- our warehouse, we call SDC in Shanghai, Shanghai distribution center, which is our warehouse. Currently, we plan to ship out that inventory, 900 million units. But I don't know what would be the ASP and what would be the GP increase due to that. But I know the number, but I do not get into how much dollar will be.

我真的不知道這一點。因為它取決於組合，如果從收入的角度來看，它取決於組合。我們確實有庫存可以出貨。好的？所以我沒有把這個數字與美元掛鉤。好的，我記得 - 我記得那個號碼，我們嘗試從 - 我們的倉庫發貨，我們在上海稱為 SDC，上海配送中心，這是我們的倉庫。目前，我們計劃出貨 9 億件庫存。但我不知道 ASP 會增加多少，GP 會因此增加多少。但我知道這個數字，但我不知道多少錢。

Okay. You're not seeing anything abnormal in the pricing environment right now Dr. Lu. It's pretty benign still.

好的。盧博士，您目前沒有看到定價環境有任何異常。它仍然非常良性。

I actually do not want to drop the price. Because if the demand is the issue, not for us, supply. We ...

其實我不想降價。因為如果需求是問題，那麼對我們來說，供應就不是問題。我們 ...

Let me answer the question. We haven't really seen anything abnormal price pressure or price change going through this time period at this moment. Yes, we did have 1.5% to 2% price reduction buffered into our business model...

讓我來回答這個問題。目前我們還沒有真正看到任何異常的價格壓力或價格變化。是的，我們的商業模式中確實緩衝了 1.5% 到 2% 的降價…

Our business model typically is once quarterly ASP dropped 1.5% to 2%. We still see in that kind of model, but we don't see unusual price pressures.

我們的商業模式通常是每季 ASP 下降 1.5% 到 2%。我們仍然看到這種模式，但我們沒有看到不尋常的價格壓力。

Okay. And then one final question. Let's exclude maybe the virus unknown for a second, but you grew a fantastic double digits in the industrial and auto business last year. Do you think you have the product wins or share gains or whatever that would allow those businesses to see that type of robust growth again in 2020?

好的。然後是最後一個問題。讓我們暫時排除未知的病毒，但去年工業和汽車業務實現了驚人的兩位數成長。您是否認為您的產品獲勝或份額收益或其他什麼可以讓這些企業在 2020 年再次看到這種強勁增長？

Okay. My answer is definitely yes. Because we were down, the whole industry will be down anyway. If the demand really slowed down, not because it's due to some key components or some labor -- the factory -- our customer cannot get enough labor for building the units or due to the key components cannot supply. The whole industry should be down anyway. So we are in the good position because of our product portfolio and because of our solution sales. And all this one, I just don't think our growth will be changed. So we will continue gaining the market share. I don't see a reason why not.

好的。我的答案是肯定的。因為我們下滑了，所以整個產業無論如何都會下滑。如果需求確實放緩，不是因為某些關鍵部件或某些勞動力——工廠——我們的客戶無法獲得足夠的勞動力來建造設備，或者是因為關鍵部件無法供應。無論如何，整個產業都應該下跌。因此，由於我們的產品組合和解決方案銷售，我們處於有利地位。而這一切，我只是不認為我們的成長會改變。因此，我們將繼續獲得市場份額。我看不出有什麼理由不這麼做。

Yes. So we have a really good pipeline right now. Really, the result for all this commitment and the demand creation from the past. So we're pretty confident that we'll continue to grow in the automotive area, especially it sounds like for example, the next-generation telematics adopted by Pericom side of our product. So we're really confident that the momentum will continue.

是的。所以我們現在有一個非常好的管道。確實，這是所有這些承諾和過去創造的需求的結果。因此，我們非常有信心我們將在汽車領域繼續發展，尤其是聽起來，例如，我們產品的 Pericom 方面採用的下一代遠端資訊處理。因此，我們非常有信心這種勢頭將持續下去。

(Operator Instructions) And our next question comes from the line of Tianyan Goellner from Sidoti.

（操作員說明）我們的下一個問題來自 Sidoti 的 Tianyan Goellner。

So I just wanted to get some sense about the revenue in 2020. So -- because usually the revenue kind of in the first half and the second half are pretty evenly split. So for this year, probably we'll see some second half loaded. Is that correct?

所以我只是想了解一下 2020 年的收入。因為通常上半年和下半年的收入是相當平均的。因此，今年，我們可能會看到下半年的情況有所改善。那是對的嗎？

Well, for sure, this year will be because 1Q going to be so much trouble or uncertainty due to the coronavirus. And I believe it will slow down the impact in second quarter, but I still don't have any information that they're going to be completely recovered by end of second quarter. I don't know, that will be the case or not. But if that happens then third quarter and fourth quarter will start to be booming. So I definitely think first half will be below than the second half of 2020.

嗯，可以肯定的是，今年第一季將因冠狀病毒而出現許多麻煩或不確定性。我相信這會減緩第二季的影響，但我仍然沒有任何資訊表明它們將在第二季末完全恢復。我不知道，會不會是這樣。但如果這種情況發生，那麼第三季和第四季將開始蓬勃發展。所以我肯定認為上半年會低於2020年下半年。

Okay. That's very helpful. Next one, maybe some color on the end markets, for example, communications and consumable computing. So in 2020, I know industrial and automotive will be still strong. But -- so when we're looking into 2020, how should we think about those 3 remaining end markets?

好的。這非常有幫助。下一個可能是終端市場的一些色彩，例如通訊和消費性計算。因此，我知道 2020 年工業和汽車產業仍將強勁。但是，當我們展望 2020 年時，我們應該如何考慮剩下的 3 個終端市場？

Right. So let me address this. This is Emily. I think for communications, I did mention a little bit about 5G performance is actually going to be, especially on the mobile side going to start ramping, and we believe that will definitely boost up some of the areas. In this area, on top of that, there's also routers and switch related to the 5G. So we think this is going to be a bright spot for us. For the computing as well, right, if you really think about, we talk about the data rate, we talk about the speed. So we believe the computing, especially high-end server and router and storage will continue to drive some of the upside momentum and the opportunity for us, right.

正確的。那麼讓我來解決這個問題。這是艾米麗。我認為對於通訊而言，我確實提到過一些關於 5G 性能實際上將會，特別是在移動方面將開始提升，我們相信這肯定會提升某些領域。在這個區域中，除此之外還有與5G相關的路由器和交換器。所以我們認為這將成為我們的一個亮點。對於計算也是如此，對吧，如果你認真思考的話，我們談論數據速率，我們談論速度。因此，我們相信運算，尤其是高階伺服器、路由器和儲存將繼續為我們帶來一些上行動力和機會，對吧。

I think the consumer side, the IoTs even related to 5G that's actually going to drive some of the new demand in this area. So we're pretty confident we'll continue to focus on the areas we've been talking about, right? 5G is within communication, high-end server storage within the computing area and IoT on the consumer side on top of the industrial automotive that we show significant performance in both of those areas already. So that's been -- we'll continue to focus and that's not going to change in 2020.

我認為在消費者方面，物聯網甚至與 5G 相關，這實際上將推動該領域的一些新需求。因此，我們非常有信心將繼續專注於我們一直在討論的領域，對吧？5G 涉及通訊、運算領域的高階伺服器儲存以及工業汽車領域消費端的物聯網，我們已經在這兩個領域展示了顯著的效能。所以我們將繼續關注這一點，這一點在 2020 年不會改變。

Okay. But in 2019, I think all those 3 end markets were down like single digits, they were low single digit. Should we expect the trend would be very similar in 2020?

好的。但在 2019 年，我認為這 3 個終端市場都出現了個位數的下降，而且都是低個位數的下降。我們是否應該預期 2020 年的趨勢會非常相似？

When you say single digit, you mean the growth in single digit?

當你說個位數時，你的意思是個位數的成長嗎？

Yes, correct. Yes, correct.

是，對的。是，對的。

Right. But if you can see the overall market in Brett's comments, the overall market with our participant area, 6.6% drop. So even with the single-digit growth from Diodes, that still outperforms compared to all our other peers in the industry.

正確的。但如果你可以看到Brett的評論中的整體市場，我們參與者區域的整體市場，下降了6.6%。因此，即使 Diodes 實現個位數成長，其表現仍優於業內所有其他同行。

Well, if you look at minus 6.6% plus 2.9%, then actually, it's almost 10%.

嗯，如果你看看負 6.6% 加上 2.9%，那麼實際上幾乎是 10%。

Right, right. And then also like some example, in the computing area, we're all aware of the Intel chipset shortage and stuff like that. We believe in 2020, the situation will improve based on Intel's announcement. So that is the other area that is also driven by the market and also driven by the other vendors grabbing the market as well.

是的是的。然後也像一些例子一樣，在計算領域，我們都知道英特爾晶片組短缺之類的事情。我們相信，根據英特爾的公告，2020 年情況將會有所改善。因此，這是另一個由市場驅動的領域，也是由其他搶佔市場的供應商所驅動的。

Okay, that's very good. So my last question, if I may, would be for Brett, on the CapEx. You just mentioned that in the prepared remarks, that 5% to 9% of revenue would be the good assumption. So I'm wondering, considering in the third quarter and in the fourth quarter, that capital intensity was at like 7.9%. Should we assume at the higher end of 5% to 9% or just the midpoint?

好的，那很好。如果可以的話，我的最後一個問題是針對布雷特的資本支出問題。您剛才提到，在準備好的發言中，收入的 5% 到 9% 是一個很好的假設。所以我想知道，考慮到第三和第四季度，資本密集度約為 7.9%。我們應該假設 5% 到 9% 的高端還是中點？

Well, let me answer this. Because I will not allow, okay, the CapEx above our model. Because our model is 5% to 9%, so I would not allow it. But only 1 case if we alter the space in Chengdu, then we build at Chengdu another big building, another facility and the equipment and all. So when we -- out of the capacity of space for Chengdu, we do need to build the buildings. Then that will boost up our CapEx a little bit more. But fortunately, they are not depreciated in 5 years. They are depreciated in 15 -- it's 15 years. So it's not a big depreciation. Okay. So we will still try to keep it -- we will still keep it at 5% to 9% model.

好吧，讓我來回答這個問題。因為我不會允許高於我們模型的資本支出。因為我們的模型是5%到9%，所以我不會允許。但只有一種情況，如果我們改變成都的空間，然後我們在成都建造另一棟大樓，另一座設施和設備等等。因此，當我們成都的空間容量不足時，我們確實需要建造建築物。那麼這將進一步提高我們的資本支出。但幸運的是，它們5年來沒有貶值。它們在 15 年內就會折舊——也就是 15 年。所以貶值幅度並不大。好的。所以我們仍然會盡力保持它——我們仍然會保持在 5% 到 9% 的模型。

Thank you. At this time, I'm showing no further questions. I would like to turn the call back over to Dr. Lu for closing remarks.

謝謝。目前，我沒有再提出任何問題。我想把電話轉回盧醫師做總結發言。

Okay. Thank you for your participation on today's call. Operator, you may now disconnect.

好的。感謝您參加今天的電話會議。接線員，您現在可以斷開連接了。

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

女士們、先生們，今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。