Diodes Inc (DIOD) 2024 Q1 法說會逐字稿

Good afternoon, and welcome to Diodes Incorporated's First Quarter 2024 Financial Results Conference Call. (Operator Instructions) As a reminder, this conference call is being recorded today, Thursday, May 9, 2024.

下午好，歡迎參加 Diodes 公司 2024 年第一季財務業績電話會議。 （操作員說明）謹此提醒，本次電話會議將於今天（2024 年 5 月 9 日星期四）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 Fiscal 2024 Financial Results Conference Call. I'm Leanne Sievers, President of Shelton Group, Diodes' Investor Relations firm. Joining us today are Diodes' President, Gary Yu; Chief Financial Officer, Brett Whitmire; Senior Vice President of Worldwide Sales & Marketing, Emily Yang; and Director of Investor Relations for Gurmeet Dhaliwal.

下午好，歡迎參加 Diodes 2024 財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。今天加入我們的是 Diodes 總裁 Gary Yu；財務長布雷特·惠特米爾；全球銷售與行銷資深副總裁 Emily Yang； Gurmeet Dhaliwal 投資者關係總監。

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 unaudited and subject to revision until the company files its Form 10-Q for its fiscal quarter ending March 31, 2024.

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關閉程序以及公司獨立註冊公共會計師事務所的慣例季度審查。因此，在本公司提交截至 2024 年 3 月 31 日的財政季度的 10-Q 表格之前，這些結果未經審計並可能會進行修訂。

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, including Forms 10-K and 10-Q.

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安全港的保護。美國證券交易委員會提交的文件（包括表格10-K 和10-Q）中的風險和不確定性。

In addition, any projections as to the company's future performance represent management's estimates as of today, May 9, 2024. Diode 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.

此外，有關公司未來業績的任何預測均代表管理層截至今天（2024 年 5 月 9 日）的估計。適用法律。

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.

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。

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.

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, Gary Yu. Gary, please go ahead.

現在，我將把電話轉給 Diodes 總裁 Gary Yu。加里，請繼續。

As reported earlier today, first quarter revenue reflected a slower-than-expected recovery in the consumer, computing and the communication market, coupled with the typical first quarter seasonality due to the Chinese New Year holiday. However, late in the quarter, we began to see some signs of demand improvement with distributor inventory levels starting to stabilize, supporting our belief that the first quarter should be the low point and are guiding for a return to seasonal growth in the second quarter.

正如今天早些時候報導的那樣，第一季收入反映出消費、計算和通訊市場的復甦慢於預期，加上中國農曆新年假期造成的典型第一季季節性。然而，在本季末，我們開始看到一些需求改善的跡象，經銷商庫存水準開始穩定，這支持了我們的信念，即第一季應該是低點，並指導第二季度恢復季節性成長。

In the automotive and industrial end markets, first quarter combined product revenue remained above our target model of 40%, but continues to be affected by inventory adjustment and a softness in certain areas. More broadly, the slower overall demand environment in the quarter contributed to reduced loading at our manufacturing facilities, both internal production as well as from our manufacturing service agreements, temporarily impacting gross margins.

在汽車和工業終端市場，第一季綜合產品收入仍高於我們40%的目標模型，但繼續受到庫存調整和某些領域疲軟的影響。更廣泛地說，本季整體需求環境放緩導致我們的製造設施（包括內部生產和製造服務協議）的負載減少，暫時影響了毛利率。

We expect gross margin to resume toward our target of 40% as we increase our factory loading by qualifying more products combined with increasing revenue growth from our higher-margin automotive and industrial market, consistent with our historical performance and our long-term growth strategy.

我們預計毛利率將恢復到40% 的目標，因為我們透過鑑定更多產品來增加工廠負荷，同時提高利潤率較高的汽車和工業市場的收入成長，這與我們的歷史績效和長期成長策略一致。

In summary, with early evidence of recent pricing pressures subsiding, Diodes is well positioned with the size and the scale to support a return to growth as global demand and distributor inventory improves across our end markets. We remain focused on operating our manufacturing facilities at a high level of efficiency as demonstrated by the steps the company has taken over the past several quarters to further develop our process technology and capabilities while lowering manufacturing costs across our operations.

總之，隨著近期價格壓力消退的早期證據，隨著全球需求和經銷商庫存在我們終端市場的改善，Diodes 的規模和規模已處於有利地位，可以支持恢復成長。我們仍然專注於以高效率運作我們的製造設施，公司在過去幾季為進一步開發我們的製程技術和能力，同時降低整個營運的製造成本所採取的措施就證明了這一點。

With that, let me now turn the call over to Brett to discuss our first quarter financial results as well as our second quarter guidance in more detail.

現在，讓我將電話轉給布雷特，更詳細地討論我們第一季的財務表現以及第二季的指導。

Thanks, Gary, and good afternoon, everyone. Revenue for the first quarter of 2024 was $302 million compared to $322.7 million in the fourth quarter of 2023 and $467.2 million in the first quarter 2023.

謝謝加里，大家下午好。 2024 年第一季的營收為 3.02 億美元，而 2023 年第四季的營收為 3.227 億美元，2023 年第一季的營收為 4.672 億美元。

Gross profit for the first quarter was $99.6 million or 33% of revenue, which reflects the reduced loading at our manufacturing facilities due to the lower revenue. This compares to $112.5 million or 34.9% of revenue in the prior quarter and $194.5 million or 41.6% of revenue in the prior year quarter.

第一季的毛利為 9,960 萬美元，佔收入的 33%，這反映出由於收入下降而導致我們的製造工廠的負荷減少。相較之下，上一季營收為 1.125 億美元，佔營收的 34.9%；去年同期營收為 1.945 億美元，佔營收的 41.6%。

GAAP operating expenses for the first quarter were $86.6 million or 28.7% of revenue, and on a non-GAAP basis, were $87.6 million or 29% of revenue, which excludes $3.8 million of amortization of acquisition-related intangible asset expenses. This compares to GAAP operating expenses in the prior quarter of $91.8 million or 28.4% of revenue, and in the first quarter 2023 of $108 million or 23.1% of revenue. Non-GAAP operating expenses in the prior quarter were $89 million or 27.6% of revenue.

第一季的GAAP 營運費用為8,660 萬美元，佔營收的28.7%；以非GAAP 計算，營運費用為8,760 萬美元，佔營收的29%，其中不包括與收購相關的無形資產費用攤銷380 萬美元。相較之下，上一季的 GAAP 營運費用為 9,180 萬美元，佔營收的 28.4%；2023 年第一季的 GAAP 營運費用為 1.08 億美元，佔營收的 23.1%。上一季的非 GAAP 營運費用為 8,900 萬美元，佔營收的 27.6%。

Total other income amounted to approximately $5.9 million for the quarter, consisting of $4.6 million of interest income, $1 million of foreign currency gains, $0.4 million of other income, $0.4 million of unrealized gain on investments, and a $0.5 million in interest expense.

該季度的其他收入總額約為590 萬美元，其中包括460 萬美元的利息收入、100 萬美元的外匯收益、40 萬美元的其他收入、40 萬美元的未實現投資收益以及50 萬美元的利息支出。

Income before taxes and non-controlling interest in the first quarter 2024 was $18.8 million compared to $27.9 million in the previous quarter and $88.6 million in the prior year quarter. Turning to income taxes, our effective income tax rate for the first quarter was approximately 18.8%.

2024 年第一季稅前及非控股權益前收入為 1,880 萬美元，上一季為 2,790 萬美元，上年同期為 8,860 萬美元。說到所得稅，我們第一季的有效所得稅率約為18.8%。

GAAP net income for the first quarter was $14 million or $0.30 per diluted share compared to $25.3 million or $0.55 per diluted share last quarter and $71.2 million or $1.54 per diluted share in the prior year quarter. The share count used to compute GAAP diluted EPS in the first quarter was 46.3 million shares.

第一季GAAP 淨利為1,400 萬美元，即稀釋後每股收益0.30 美元，而上一季為2,530 萬美元，即稀釋後每股收益0.55 美元，去年同期為7,120 萬美元，即稀釋後每股收益1.54 美元。用於計算第一季 GAAP 攤薄每股收益的股票數量為 4,630 萬股。

Non-GAAP adjusted net income in the first quarter was $13 million or $0.28 per diluted share, which excluded net of tax, $3.1 million of acquisition-related intangible asset costs, a $0.3 million non-cash mark-to-market investment value adjustment, and a $3.8 million insurance recovery for a manufacturing facility. This compares to $23.4 million or $0.51 per diluted share in the prior quarter and $73.4 million or $1.59 per diluted share in the first quarter 2023.

第一季非 GAAP 調整後淨利潤為 1300 萬美元，或稀釋後每股 0.28 美元，其中不含稅、310 萬美元的收購相關無形資產成本、30 萬美元的非現金按市價投資價值調整、以及一家製造工廠380 萬美元的保險賠償。相比之下，上一季為 2,340 萬美元，即稀釋後每股 0.51 美元；2023 年第一季為 7,340 萬美元，即稀釋後每股 1.59 美元。

Excluding non-cash share-based compensation expense of $4 million, net of tax, for the first quarter, both GAAP earnings per share and non-GAAP adjusted EPS would have increased by $0.09 per diluted share, respectively. EBITDA for the first quarter was $48.3 million or 16% of revenue, compared to $58.4 million or 18.1% of revenue in the prior quarter and $121.8 million or 26.1% of revenue in the first quarter 2023.

剔除第一季 400 萬美元的非現金股權補償費用（稅後），每股稀釋後 GAAP 收益和非 GAAP 調整後每股收益將分別成長 0.09 美元。第一季的EBITDA 為4,830 萬美元，佔營收的16%，而上一季的EBITDA 為5,840 萬美元，佔營收的18.1%；2023 年第一季的EBITDA 為1.218 億美元，佔營收的26.1% 。

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.

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。

Cash flow used in operations was $31.1 million for the first quarter. Free cash flow was a negative $51.5 million, which included $20.4 million for capital expenditures. Net cash flow was a negative $47.9 million.

第一季營運使用的現金流為 3,110 萬美元。自由現金流為負 5,150 萬美元，其中包括 2,040 萬美元的資本支出。淨現金流為負 4,790 萬美元。

Turning to the balance sheet. At the end of the first quarter, cash, cash equivalents, restricted cash plus short-term investments totaled approximately $280 million. Working capital was $824 million and total debt, including long term and short term, was approximately $70 million.

轉向資產負債表。截至第一季末，現金、現金等價物、限制性現金加上短期投資總計約2.8億美元。營運資金為 8.24 億美元，總債務（包括長期和短期）約為 7,000 萬美元。

In terms of inventory, at the end of the first quarter, total inventory days were approximately 184 as compared to 160 last quarter. Finished goods inventory days were 67 compared to 49 last quarter. Total inventory dollars increased $39.6 million from the prior quarter to $429.4 million. Total inventory in the quarter consisted of $40.2 million increase in finished goods, a $1.6 million increase in work-in-process, and a $2.1 million decrease in raw materials.

庫存方面，第一季末總庫存天數約184天，上季為160天。成品庫存天數為 67 天，而上季為 49 天。庫存總額較上一季增加 3,960 萬美元，達 4.294 億美元。本季的總庫存包括製成品增加 4,020 萬美元、在製品增加 160 萬美元以及原材料減少 210 萬美元。

Capital expenditures, on a cash-basis, were $20.4 million for the first quarter or 6.7% of revenue and within our target range of 5% to 9%.

第一季以現金計算的資本支出為 2,040 萬美元，佔營收的 6.7%，介於我們 5% 至 9% 的目標範圍內。

Now turning to our outlook. For the second quarter 2024, we expect revenue to be approximately $316 million, plus or minus 3%, representing a 4.6% sequential increase at the midpoint and reflecting a return to typical seasonal growth. GAAP gross margin is expected to be 33.5%, plus or minus 1%, reflecting the lower mix of revenue from the automotive and industrial markets as the 3C markets recover.

現在轉向我們的展望。對於 2024 年第二季度，我們預計收入約為 3.16 億美元，正負 3%，相當於中點環比增長 4.6%，反映了典型季節性增長的回歸。 GAAP 毛利率預計為 33.5%，上下浮動 1%，反映出隨著 3C 市場復甦，來自汽車和工業市場的收入組合下降。

Non-GAAP operating expenses, which are GAAP operating expenses adjusted for amortization of acquisition-related intangible assets, are expected to be approximately 28.5% of revenue, plus or minus 1%. We expect net interest income to be approximately $3 million.

非 GAAP 營運費用（即針對收購相關無形資產攤銷進行調整的 GAAP 營運費用）預計約為收入的 28.5%，上下浮動 1%。我們預計淨利息收入約為 300 萬美元。

Our income tax rate is expected to be 18.5%, plus or minus 3%, and shares used to calculate EPS for the second quarter are anticipated to be approximately 46.5 million.

我們的所得稅稅率預計為18.5%，正負3%，用於計算第二季每股盈餘的股票預計約為4,650萬股。

Not included in these non-GAAP estimates is amortization of $3.1 million after tax for previous acquisitions.

這些非 GAAP 預估中不包括先前收購的 310 萬美元稅後攤銷。

With that said, I will 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. Revenue in the first quarter was down 6% sequentially and slightly below the midpoint of our guidance due to a slower recovery in the 3C market than originally expected. Our first quarter global POS decreased slightly due to the Chinese New Year in Asia, but has recovered since March and continued to grow into the second quarter. This also drove channel inventory value to decrease even though remaining above our defined normal range of 11 to 14 weeks.

謝謝你，布雷特，下午好。由於 3C 市場復甦速度慢於最初預期，第一季營收季減 6%，略低於我們指引的中點。由於亞洲農曆新年的影響，我們第一季的全球 POS 略有下降，但自 3 月以來已經恢復，並持續增長到第二季度。這也導致通路庫存價值下降，儘管仍高於我們定義的 11 至 14 週的正常範圍。

As Gary mentioned, we are beginning to see improvement in demand going into the second quarter with stronger book-to-bill ratio. In fact, this is the first time we've seen a positive book-to-bill ratio since mid-2022, further supporting our expectation of the first quarter being the low point in the cycle.

正如加里所提到的，我們開始看到第二季的需求有所改善，訂單出貨比有所增強。事實上，這是我們自 2022 年中期以來首次看到正的訂單出貨比，進一步支持了我們對第一季是週期低點的預期。

Assuming no major macroeconomic change in the market, given the stronger backlog and better book-to-bill ratio and healthier inventory level in the 3C segment, we feel optimistic about second quarter revenue improvement and stronger second half of the year than the first half.

假設市場宏觀經濟沒有重大變化，考慮到 3C 領域積壓量增加、訂單出貨比改善以及庫存水準更健康，我們對第二季度收入改善以及下半年比上半年更強的情況感到樂觀。

Looking at the global sales in the first quarter. Asia represented 75% of revenue; Europe, 16%; and North America, 9%. In terms of our end markets, industrial was 23% of Diodes' product revenue; Automotive, 18%; Computing, 25%; Consumer 20%; and Communication 14% of product revenue. Our automotive and industrial end markets combined totaled 41% of the first quarter product revenue, representing the eighth consecutive quarter above our target model of 40%.

看看第一季的全球銷售。亞洲佔收入的 75%；歐洲，16%；北美為 9%。就我們的終端市場而言，工業市場佔 Diodes 產品收入的 23%；汽車業，18%；計算機，25%；消費者20%；通訊佔產品收入的 14%。我們的汽車和工業終端市場合計佔第一季產品收入的 41%，連續第八個季度高於我們 40% 的目標模型。

Now, let me review the end markets in greater detail. Starting with Automotive market, revenue was 18% of our total product revenue, which was flat to last quarter on a percentage basis. The slowdown in the demand, along with inventory rebalancing continued in the first quarter, and we expect this would continue into the second quarter. But our demand creation momentum continued with expanding design ins and design wins across multiple applications.

現在，讓我更詳細地回顧一下終端市場。從汽車市場開始，收入占我們產品總收入的 18%，以百分比計算與上季持平。需求放緩以及庫存重新平衡在第一季持續，我們預計這種情況將持續到第二季​​。但我們的需求創造勢頭仍在繼續，不斷擴大設計範圍並在多個應用程式中贏得設計勝利。

Our focus on the connected driving, comfort, style, safety and electrification continued as we introduced 44 new automotive products in the first quarter with a focus on applications such as EV protection, high speed and high bandwidth automotive Ethernet network protection, battery management systems, Wi-Fi telecommunication, and infotainment. We're also expanding our solutions within electric and hybrid electric vehicle subsystems, including battery chargers, onboard chargers, high-efficiency DC/DC converters, motor drivers and traction inverters.

我們繼續專注於互聯駕駛、舒適性、風格、安全性和電氣化，第一季推出了 44 款新汽車產品，專注於電動車保護、高速和高頻寬汽車乙太網路保護、電池管理系統、 Wi-Fi 電信和資訊娛樂。我們也在電動和混合動力電動車子系統中擴展我們的解決方案，包括電池充電器、車載充電器、高效 DC/DC 轉換器、馬達驅動器和牽引逆變器。

Additionally, the adoption of Diodes' USB Type C ReDrivers, DisplayPort Alternative active crossbar Muxes and MIPI switches have increased significantly in the rear-seat entertainment, smart cockpits, ADAS and camera monitor systems. And our PCI Express Gen 6 Clock generators, crystal oscillators and TVS products are being designed into various ADAS platforms. We also continue to see momentum and design win for rectifiers, switch diodes and DC-DC products in infotainment, ADAS and telematics.

此外，後座娛樂、智慧駕駛艙、ADAS 和攝影機監控系統中 Diodes 的 USB C 型轉接驅動器、DisplayPort 替代主動交叉開關復用器和 MIPI 開關的採用顯著增加。我們的 PCI Express Gen 6 時脈產生器、晶體振盪器和 TVS 產品被設計到各種 ADAS 平台。我們也繼續看到資訊娛樂、ADAS 和遠端資訊處理領域的整流器、開關二極體和 DC-DC 產品的勢頭和設計勝利。

Also within automotive, our linear LED drivers won designs in headlights and EV high-beam/low-beam applications, while our TVS products are being designed-in for power line protection in the headlights, steering control modules and daylight running lights. Our Hall effect switches and latches continue to gain design wins and revenue growth momentum for cooling water pumps and window lift controls.

同樣在汽車領域，我們的線性LED 驅動器贏得了車頭燈和電動汽車遠光燈/近光燈應用的設計，而我們的TVS 產品則被設計用於頭燈、轉向控制模組和日間行車燈的電源線保護。我們的霍爾效應開關和鎖存器在冷卻水泵和車窗升降控制方面繼續獲得設計勝利和收入成長勢頭。

In the industrial market, first quarter revenue represented 23% of the total product revenue, which was also flat to the last quarter but down in terms of revenue as the inventory rebalancing continues during the quarter, and this may last into the second half of the year.

在工業市場，第一季營收佔產品總營收的23%，也與上季持平，但隨著本季庫存重新平衡的持續，營收有所下降，且這種情況可能會持續到下半年年。

Despite the slowdown, we continue to focus on expanding our design pipeline and application opportunities. Specifically during the quarter, our LDOs continue to gain traction in fans, power tools and E-meter applications while rectifiers, switch diodes and Silicon Carbide power MOSFETs are being used in the power tools, power storage, solar inverters and high-efficiency LED backlighting. We also continue to win designs with our Piezo driver portfolio in smoke detectors and alarm applications.

儘管成長放緩，我們仍繼續專注於擴大我們的設計管道和應用機會。具體而言，在本季度，我們的LDO 繼續在風扇、電動工具和電錶應用中受到關注，而整流器、開關二極管和碳化矽功率MOSFET 則用於電動工具、電力儲存、太陽能逆變器和高效LED背光。我們也繼續憑藉壓電驅動器產品組合在煙霧偵測器和警報應用中贏得設計。

Also in the industrial market, we are seeing adoption of HDMI Muxes and DisplayPort HDMI ReDrivers and LED drivers in the commercial display, highway signs and conference TV applications. We're also seeing traction for silicon carbide products in HVAC, energy storage system, power factor correction, and server power supplies. Additionally, our Contact Image Sensor had new design wins in automated optical inspection applications.

同樣在工業市場，我們看到 HDMI 多工器和 DisplayPort HDMI 轉接驅動器以及 LED 驅動器在商業顯示器、高速公路標誌和會議電視應用中得到採用。我們也看到碳化矽產品在暖通空調、儲能係統、功率因數校正和伺服器電源領域的吸引力。此外，我們的接觸式影像感測器在自動光學偵測應用中獲得了新的設計勝利。

In the computer market, like I mentioned earlier, inventory is healthy and we expect to see a gradual improvement in revenue, especially in the AI server area, with signs of stronger backlog in Asia. From a design momentum point of view, our signal integrity and connectivity products continue with increased adoption of HDMI, USB-C, MIPI, EDP ReDrivers and switches along with USB-C power switches and TVS in applications, including workstation, gaming, notebook, desktop, docking stations and tablets.

在電腦市場，正如我之前提到的，庫存狀況良好，我們預計收入將逐步改善，特別是在人工智慧伺服器領域，亞洲積壓的跡象更加明顯。從設計動力的角度來看，我們的訊號完整性和連接產品繼續在應用中越來越多地採用HDMI、USB-C、MIPI、EDP 轉接驅動器和開關以及USB-C 電源開關和TVS，包括工作站、遊戲、筆記型電腦、桌上型電腦、擴充座和平板電腦。

We also saw new design-ins and production ramping for PCI Express Gen 3 package switch, PCI Express clock buffers, TVS, rectifier, and switches diodes in server, artificial intelligence servers and data center applications. We also secured design wins and revenue growth for hall-effect latched switches in DC fans, LED drivers in keyboard lighting and contact image sensors for multifunction printers.

我們還看到了伺服器、人工智慧伺服器和資料中心應用中 PCI Express Gen 3 封裝開關、PCI Express 時脈緩衝器、TVS、整流器和開關二極體的新設計和生產量增加。我們還獲得了直流風扇中的霍爾效應鎖存開關、鍵盤照明中的 LED 驅動器以及多功能印表機的接觸式圖像感測器的設計勝利和收入增長。

Turning to communication market. On the enterprise side, due to slower-than-expected demand, the inventory depletion rate has been slow, and we expect this may last into the second half before returning to a healthy levels. On the smartphone side, even though inventory is clean, the recovery will likely to be gradual over the coming quarters.

轉向通訊市場。企業方面，由於需求慢於預期，庫存消耗速度緩慢，我們預計這種情況可能會持續到下半年，然後才會恢復到健康水準。在智慧型手機方面，儘管庫存乾淨，但未來幾季的復甦可能會逐步進行。

For the design side, our camera fresh LED driver rectifiers, clock buffers and LDOs with designing and ramping up in the smartphone and 5G equipment, while TVS products are being designed into smartphone battery protection applications. We have several design wins for crystal oscillators in optical transceiver modules and Hall-Effect switches and true wireless stereo technology for earbuds.

在設計方面，我們的相機全新 LED 驅動器整流器、時脈緩衝器和 LDO 正在智慧型手機和 5G 設備中進行設計和升級，而 TVS 產品也被設計到智慧型手機電池保護應用中。我們在光學收發器模組中的晶體振盪器、霍爾效應開關以及耳機的真正無線立體聲技術方面獲得了多項設計成果。

And lastly, in the consumer market, similar to the PC market, inventory is relatively clean. Even though the overall demand is not as strong as we expected, we still expect some of the new designs will start to ramp in Q2 and peak in Q3. Our Buck converters, LED drivers and MOSFETs are being designed into several smart home IoT and virtual reality projects, while our LDO saw new design wins in smart watches. Also our rectifiers, switch diodes and low switches and buck converters were designed in and ramping up during the quarter in televisions and monitors. We are also seeing traction for USB Type C DP retimers and USB Type-C active cable and docking station applications.

最後，在消費市場，與PC市場類似，庫存相對乾淨。儘管整體需求不如我們預期的那麼強勁，但我們仍然預計一些新設計將在第二季開始成長，並在第三季達到頂峰。我們的降壓轉換器、LED 驅動器和 MOSFET 正在被設計到多個智慧家庭物聯網和虛擬實境專案中，而我們的 LDO 在智慧手錶中取得了新的設計成果。此外，我們的整流器、開關二極體、低壓開關和降壓轉換器也是在電視和顯示器中設計的，並在本季度不斷增加。我們也看到 USB Type C DP 重定時器和 USB Type-C 主動電纜和擴充塢應用的吸引力。

In summary, as indicated by our second quarter guidance, we are expecting a return to seasonal growth based on the demand improvement and channel inventory stabilization that we began to see, specifically in the 3C markets. As the demand improve further across all our end markets, we expect gross margin to benefit from increased loading of our internal facilities as we qualify more products while also benefiting from our product mix improvement initiatives by expanding revenue contribution from our higher-margin automotive and industrial solutions as those markets recover and resume growth.

總而言之，正如我們第二季指引所示，我們預計，基於我們開始看到的需求改善和通路庫存穩定，特別是在 3C 市場，將恢復季節性成長。隨著我們所有終端市場的需求進一步改善，我們預計毛利率將受益於我們內部設施負荷的增加，因為我們有資格獲得更多產品，同時也將受益於我們的產品組合改進計劃，擴大我們利潤率較高的汽車和工業產品的收入貢獻隨著這些市場的復甦和恢復成長提供解決方案。

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

至此，我們現在開始提問，接線生？

(Operator Instructions) And our first question today will come from David Williams with Loop Capital.

（操作員說明）今天我們的第一個問題將來自 Loop Capital 的 David Williams。

It's actually David from Benchmark. So, I appreciate you taking the question here. I guess one of the things I wanted to ask about is just on the gross margin. I know last quarter, 34% was kind of what we thought it would be, and thought that'd be the bottom. And it felt like there was a healthy level of utilization charges that were baked into that, but it seems like we saw a little bit more pressure. So I guess if you were looking at the puts and takes there on the margin, how much of that was utilization versus pricing in the quarter?

實際上是 Benchmark 的 David。所以，我很感謝你在這裡提出這個問題。我想我想問的一件事就是毛利率。我知道上個季度，34% 是我們所認為的，並認為這是底部。感覺其中包含了健康的使用費水平，但我們似乎看到了更多的壓力。因此，我想如果您查看看跌期權和看跌期權的邊際收益，其中有多少是本季的利用率與定價？

Yes. So, Dave, this is Emily. I think in general, we've seen the pricing stabilize, right? So, majority of the contribution of the challenge is really from the underloading pressure, both due to the decrease of revenue, so it naturally decreased some of the loadings to our own factory as well as manufacturing service agreement.

是的。所以，戴夫，這是艾米莉。我認為總的來說，我們已經看到價格穩定了，對吧？因此，挑戰的大部分貢獻實際上來自負載不足的壓力，這都是由於收入的減少造成的，因此它自然減少了我們自己工廠以及製造服務協議的一些負載。

Okay. But you sound you're fairly confident in that returning to that 40% kind of target over time. I guess, can you talk about how quickly that can return and how much utilization will help you in the next quarter as we kind of think about that revenue beginning to grow.

好的。但聽起來您對隨著時間的推移回到 40% 的目標相當有信心。我想，當我們考慮收​​入開始成長時，您能談談這種情況恢復的速度有多快以及利用率將在下個季度對您有多少幫助。

Yes. So I think a couple of factors driving the margin improvements, right? So, obviously, driving the underloading utilization is one of the key initiatives. As the market start returning, revenue will improve, that would naturally improve some of the loading. We've also been talking about aggressively porting and qualifying some products into our own factory to really improve the overall loading, supporting our hybrid manufacturing model, right? So that is definitely ongoing, on track.

是的。所以我認為有幾個因素推動了利潤率的提高，對嗎？因此，顯然，推動欠載利用率是關鍵措施之一。隨著市場開始復甦，收入將會增加，這自然會提高一些負載。我們也一直在討論積極地將一些產品移植到我們自己的工廠並進行資格認證，以真正改善整體負載，支持我們的混合製造模式，對吧？所以這肯定是持續進行的、步入正軌的。

And so, we believe with all of this going on, right, it definitely would naturally improve the underloading situation. At the same time, product mix improvement has been a key initiative, right? There's a couple of ways to look at it. We talk about new product introduction. In 2023 alone, we introduced a lot of automotive customer -- automotive products, and we want to continue to expand our portfolio, that would naturally continue to help us to support our market expansion, right? And also, content expansion.

因此，我們相信，隨著這一切的發生，肯定會自然地改善負載不足的情況。同時，產品結構的改進也是一項關鍵舉措，對吧？有幾種方法可以看待它。我們談論新產品的推出。僅在2023年，我們就引入了許多汽車客戶——汽車產品，我們希望繼續擴大我們的產品組合，這自然會繼續幫助我們支持我們的市場擴張，對吧？還有，內容擴充。

We also talk about analog and power discrete. That will continue to be the key focus. Of course, a lot of the new product also concentrated focused in this area. We also talk about Pericom Semiconductor products, that will continue to be a key focus for us. That's kind of part of the analog plus the power discrete focus.

我們也討論類比和功率分立元件。這將繼續成為重點。當然，許多新品也集中聚焦在這領域。我們也談論 Pericom 半導體產品，這將繼續成為我們的重點關注點。這是模擬加功率離散焦點的一部分。

From a different area, we talk about auto industrial focus, right? So we -- I also talk about it. It's 41% by the end of last quarter, which is 8 consecutive quarters above the 40% model. When the auto industrial inventory rebalancing getting improved, we strongly believe that with the momentum and the pipeline we have in place that will continue to drive the percentage improvement in this area.

從另一個領域來說，我們談論汽車產業焦點，對吧？所以我們——我也談論它。截至上季末，該比例為 41%，連續 8 季高於 40% 模型。當汽車工業庫存再平衡得到改善時，我們堅信，憑藉我們現有的勢頭和管道，將繼續推動該領域的百分比改善。

So, if we continue to do all this and plus the manufacturing efficiency improvement, including the cost downs and stuff like that, we are confident that the margin will -- going back to the right momentum, right.

因此，如果我們繼續做這一切，再加上製造效率的提高，包括成本下降等，我們有信心利潤率將回到正確的勢頭，對吧。

Just one quick last one, if I may. Are you seeing any demand impacts in the China region, specifically from some of the domestically sourced component quotas that they've initiated? Is that dampening down your demand? Are you seeing anything in that area yet.

如果可以的話，我只想說最後一篇。您是否看到中國地區的需求受到任何影響，特別是他們發起的一些國內零件配額？這會抑制你的需求嗎？你在那個區域看到什麼了嗎？

So, Dave, can you repeat -- are you saying China quotas? I want to make sure I hear it correctly.

那麼，戴夫，你能再說一次——你是說中國配額嗎？我想確保我聽到的是正確的。

Yes, just the quota in terms of domestically sourced components. We're hearing that from a couple of other companies, I'm just curious if you're seeing that or if that is something that's impacted your business here at all yet.

是的，只是國內零件的配額。我們從其他幾家公司聽說了這一點，我只是好奇您是否看到了這一點，或者這是否已經影響了您在這裡的業務。

Yes. I think -- I mean, definitely, we talk about the competition from China directly or indirectly related to the quota, right? So, I think, at the end of the day, if our product doesn't really have a strong differentiation, if it's not the feature functions and then we ending up with a lot of competitors from the other region, these are the products and also business will face or continue to face a lot of challenge, right?

是的。我想——我的意思是，我們肯定會談論來自中國的與配額直接或間接相關的競爭，對吧？所以，我認為，歸根結底，如果我們的產品沒有真正具有很強的差異化，如果不是特色功能，那麼我們最終會遇到很多來自其他地區的競爭對手，這些就是產品和另外企業也會面臨或繼續面臨很多挑戰吧？

So, our strategy, specifically in China, has been more focusing on the technology and the product differentiation. I don't really believe all the American company are impacted. It's all down to the level of the product and the technology, right? So I would say, definitely, there are some impacts, but I would say it's probably more on the small scale. Right, [small step].

因此，我們的策略，特別是在中國，更加重視技術和產品差異化。我真的不相信所有美國公司都會受到影響。這一切都取決於產品和技術的水平，對嗎？所以我想說，肯定會有一些影響，但我想說的是，影響可能只是小範圍的。是的，[一小步]。

Right. Right. Actually, as you know, the total revenue of China, really especially like China local local does not really take a bigger percentage of Diodes' total revenue. So the impact is relatively small because we have a lot of customer in China, but they produce the product, it's really OEM or like international transfer business. So, I do believe in this area we're pretty firm on our position.

正確的。正確的。事實上，如你所知，中國的總收入，特別是中國本土的收入，並沒有真正佔Diodes總收入的比例更大。所以影響相對較小，因為我們在中國有很多客戶，但他們生產產品，這實際上是 OEM 或類似國際轉移業務。所以，我確實相信在這個領域我們的立場非常堅定。

And our next question will come from Gary Mobley with Wells Fargo.

我們的下一個問題將來自富國銀行的加里·莫布里。

I want to start out with a clarification or clarification request and then a related question. So, when you speak of qualification of new products to become more vertically integrated, I assume you're talking about the qualification at the Portland fab, which you picked up from Onsemi and the Greenock facility you picked up from TI. Is that correct?

我想先提出澄清或澄清請求，然後提出相關問題。因此，當您談到新產品的資格認證以使其更加垂直整合時，我假設您正在談論從 Onsemi 獲得的波特蘭工廠和從 TI 獲得的格林諾克工廠的資格認證。這是正確的嗎？

And then related to the MSA that you have with those 2 particular parties, can you give us a sense of how those evolve over time? How you will slowly transition those facilities over to your own internal manufacturing and maybe what some of the minimums are with those parties and how those minimums go down over time?

然後，關於您與這兩個特定方的 MSA，您能否讓我們了解這些協議如何隨著時間的推移而演變？您將如何慢慢地將這些設施轉移到您自己的內部製造中，也許這些各方的最低限度是什麼，以及這些最低限度如何隨著時間的推移而下降？

Hi Gary. This is Gary. So, I think for the years, we have a manufacturing service agreement in places for our OEM customer in both AT and the foundry service. So not only limited on the foundry service, just want to make sure that we understand on that. And their loading can be adjusted time to time by their end demand and (inaudible). With that, we do see some impact on revenue and GP from third quarter last year.

嗨加里。這是加里.因此，我認為多年來，我們在 AT 和代工服務方面都為 OEM 客戶簽訂了製造服務協議。因此，不僅限於代工服務，只是想確保我們理解這一點。他們的負載可以根據最終需求不時調整（聽不清楚）。因此，我們確實看到了去年第三季對收入和毛利率的一些影響。

But not much we can control that. I cannot disclose too much detail about that. Just in case you have any question related to that, kind of demand stop or not. However, while we're working very hard in the past couple of years, it's continuing to offload our outside loading from our partner in the different foundry and continue qualifying internally and get all key customer approval.

但我們無法控制這一點。我不能透露太多細節。以防萬一您有任何與此相關的問題，是否要求停止。然而，儘管我們在過去幾年中工作非常努力，但它仍在繼續從不同代工廠的合作夥伴那裡卸下我們的外部負擔，並繼續進行內部資格認證並獲得所有關鍵客戶的認可。

But as you know, you're absolutely correct for those kind of SPFAB from Onsemi and GFAB from TI, and we are doing our best to qualify our technology and our product over there. But at the same time, we do need to have our customer to approve our PCN to change wafer fab. That take a little bit longer time. Now especially after COVID and the demand softened at this moment, the customer's willingness to change the PCN or change the different wafer fab on site will be much slower than the time we have a shortage area, okay? That's the way you need to understand.

但如您所知，您對於 Onsemi 的 SPFAB 和 TI 的 GFAB 的看法是絕對正確的，我們正在盡最大努力來驗證我們的技術和產品。但同時，我們確實需要客戶批准我們的PCN更換晶圓廠。這需要更長的時間。現在尤其是疫情過後，此時此刻需求疲軟，客戶更換PCN或現場更換不同晶圓廠的意願會比我們缺貨區域的時候慢很多，好嗎？這就是你需要理解的方式。

But so far, our progress, internal qualification is very good, and we do see some project ahead of our June schedule, as I can tell you at this point. So, just like Emily said, at this moment, we do see the loading risk on those 2 wafer fabs and as well as some loading in our assembly side. But in the nearly future, I do believe and I do have a very good confidence if those new products can be qualified in both our site and our customer side as that ramp-up.

但到目前為止，我們的進展、內部資格都非常好，而且我們確實看到一些項目提前於 6 月份的計劃，我現在可以告訴你們。因此，就像 Emily 所說的那樣，目前我們確實看到了這 2 個晶圓廠的負載風險，以及我們組裝方面的一些負載。但在不久的將來，我確實相信，我非常有信心，如果這些新產品能夠在我們的網站和客戶方面都合格，那麼隨著時間的增加。

Okay. As a follow-up, I do have another clarification question. With respect to the green shoots of improving demand, should I assume that's primarily on the 3C side of the market as inventories have been normalized there? And given that those businesses are your most seasonally sensitive businesses and you're seeing green shoots of then demand, would you expect this normal second half seasonal patterns where the third quarter is up maybe high single-digit percent sequentially, the fourth quarter down mid-single-digit percent sequentially?

好的。作為後續行動，我還有另一個需要澄清的問題。關於需求改善的萌芽，我是否應該假設這主要是在 3C 市場方面，因為那裡的庫存已經正常化？考慮到這些業務是您對季節性最敏感的業務，並且您看到了當時需求的萌芽，您是否會期望這種正常的下半年季節性模式，其中第三季度可能會連續增長高個位數百分比，第四季會下降- 連續個位數百分比？

Yes. So, Gary, this is Emily. Let me answer the question, right? So I think I did talk about it before, right? So what we're seeing is automotive inventory rebalancing will probably continue into the second quarter because it's not across the board customer and part and program varies a lot. So, it's not going to be like one way or the other. So it's going to gradually change. Industrial, because it's a broad market, so most likely, the correction will last into the second half of the year, right? 3C, from the computing point of view, inventory is clean and we do expect the second quarter as well as the second half stronger than the first half.

是的。加里，這是艾米莉。我來回答一下問題吧？所以我想我之前確實談過這個問題，對吧？因此，我們看到的是汽車庫存重新平衡可能會持續到第二季​​度，因為它不是全面的客戶、零件和計劃變化很大。所以，事情不會像這樣或那樣。所以它會逐漸改變。工業，因為它是一個廣闊的市場，所以調整很可能會持續到今年下半年，對嗎？ 3C，從計算的角度來看，庫存是乾淨的，我們確實預計第二季以及下半年將強於上半年。

From the consumer side, I think overall demand is still slower than our expectation, but we still expect some of the new programs will start ramping in the second quarter and peak in the third quarter, right? And then because the [holiday build], usually fourth quarter maybe only half month or a month only benefit from this market segment.

從消費者方面來看，我認為整體需求仍然慢於我們的預期，但我們仍然預計一些新項目將在第二季開始增加，並在第三季達到頂峰，對吧？然後因為[假期建設]，通常第四季可能只有半個月或一個月才會受益於這個細分市場。

And then from the communication point of view, right, the networking, the telecom, I think the demand is more on the slow side. So the inventory correction is actually slower to digest the inventory, and it will probably last into the second half of the year, depends on the customers as well.

然後從通訊的角度來看，對，網路、電信，我認為需求更加緩慢。所以庫存調整其實消化庫存的速度比較慢，大概會持續到下半年，還要看客戶的狀況。

On the smartphone side, I think it's driven by the demand. And overall, I would say the demand is still slower than expectation. But with all adds up, we actually strongly believe that Q2 will be a stronger quarter than Q1. That's the reason we actually guided 4.6%. We also believe second half of this year will be better than the first half, right? So, that's still -- we actually, based on what we have as a backlog, we look at the book-to-bill ratio, we look at different factors. So, I would say yes to your question, the second half will be stronger than the first half.

在智慧型手機方面，我認為這是由需求驅動的。總的來說，我想說需求仍然慢於預期。但總的來說，我們實際上堅信第二季將比第一季表現強勁。這就是我們實際指導 4.6% 的原因。我們也相信今年下半年會比上半年好，對嗎？所以，實際上，我們根據積壓的情況，研究訂單出貨比，研究不同的因素。所以，我對你的問題說是的，下半場會比上半場更強。

We're not here to call out the percentage of the improvement, right? Because I think there's still a lot of uncertainty going on in the market. But if you combine both, second half is better than the first half for sure.

我們來這裡不是為了指出改進的百分比，對嗎？因為我認為市場上仍然存在著許多不確定性。但如果把兩者結合起來，下半場肯定比上半場好。

(Operator Instructions) Our next question will come from Tristan Gerra with Baird.

（操作員說明）我們的下一個問題將由 Tristan Gerra 和 Baird 提出。

Are you able to quantify the percentage of the product that you're migrating to internal manufacturing on the front end? What is the percentage that you're currently outsourcing, what that percentage will be as you qualify more product internally? And is that mostly for your analog product as opposed to discrete?

您是否能夠量化前端遷移到內部製造的產品百分比？您目前外包的百分比是多少？這主要是針對您的類比產品而不是離散產品嗎？

Tristan, on this one, I think what you'll see is what we're -- it's a blend of both our analog and our discrete that we're bringing inside. What we're really trying to do is the technology nodes that run in a decent volume that are right down the fairway, making sure we have flexibility inside and out. And as we've been doing in the past, really, we look at wanting to be able to in-source between 50% to 60%.

特里斯坦，在這一點上，我想你會看到我們的樣子——它是我們引入的模擬和離散的混合體。我們真正想做的是在球道上以相當大的數量運行的技術節點，確保我們擁有內部和外部的靈活性。正如我們過去一直在做的那樣，實際上，我們希望能夠實現 50% 到 60% 的內包。

And during softer times, we'd like to run that higher, and we'd want to make sure that we have SPFAB and the Greenock fab being able to carry the brunt of that because they're kind of our foundational fabs across the 2 different platforms we have. And that's really where the initiative is, is not being on so dispersed and spread out, but really getting integrated into those factories and really trying to drive leverage, both from a cost and scale and be able to drive both revenue opportunities as well as cost over time. So that's kind of what we see.

在經濟疲軟時期，我們希望跑得更高，並且我們希望確保 SPFAB 和 Greenock 工廠能夠承受衝擊，因為它們是我們橫跨 2 個地區的基礎工廠。這就是倡議的真正所在，不是如此分散和分散，而是真正融入這些工廠，並真正嘗試從成本和規模方面提高槓桿率，並能夠同時推動收入機會和成本隨著時間的推移。這就是我們所看到的。

Right. And also, I want to clarify Tristan, is that not 100% from those 2 fabs have transferred from outside to inside. We do have a newer technology really tape-out in those 2 wafer fab starting from 0. So that's really good news for us. So when we say that, it does not mean 100%, we are offloading from the outside foundry factory. So we do have our internal technology and product tape-out releasing in these 2 particular wafer fab.

正確的。而且，我想澄清 Tristan，這兩家晶圓廠並不是 100% 從外部轉移到內部。我們確實有一項更新的技術，在那些 2 晶圓廠中從 0 開始真正流片。所以當我們這麼說時，並不代表100%，我們是從外部代工廠卸載的。因此，我們確實在這兩個特定的晶圓廠中發布了我們的內部技術和產品流片。

Great. That's very useful. And then just following up on the commentary about inventories. In the Q2 guidance that you're providing, do you expect to build additional inventories on your books? Or do you think that as you reduce your utilization rates in the quarter, you're now building in line with actual end demand? And then secondarily, could you talk about what point of sales for -- at [distis] is embedded in your Q2 revenue guidance?

偉大的。這非常有用。然後跟進有關庫存的評論。在您提供的第二季指引中，您是否期望在您的帳本上建立額外的庫存？或者您認為，當您降低本季度的利用率時，您現在正在根據實際的最終需求進行建造？其次，您能否談談您的第二季收入指引中包含了哪些銷售點 - at [distis]？

Yes, I'll make a couple of comments, Tristan, and then let Emily run with some others, is that what I'd say on the inventory front is that we basically have done some things in first quarter that address needing to make sure we have availability in place, addressing uncertain order patterns, addressing the fact that Chinese New Year came in February, which is a much more difficult time to manage that across the quarter and have an availability in place.

是的，我會發表一些評論，特里斯坦，然後讓艾米麗和其他一些人一起討論，我在庫存方面要說的是，我們基本上在第一季做了一些事情，解決了需要確保我們已準備好庫存，解決不確定的訂單模式，並解決農曆新年在二月到來的事實，這是整個季度管理並準備好庫存的困難時期。

And as we look out in second quarter, what we expect is essentially to be running at a level of what we expect demand to be. I don't expect to be building inventory internally, and we certainly don't expect to be building inventory externally. We continue to expect to make progress there, and we continue to see good activity from a POS perspective. And maybe I'll see if Emily wants to extend that comment at all.

正如我們在第二季度所看到的那樣，我們的預期基本上是按照我們預期的需求水準運作。我不希望在內部建立庫存，我們當然也不希望在外部建立庫存。我們繼續期望在這方面取得進展，並且從 POS 的角度來看，我們繼續看到良好的活動。也許我會看看艾米麗是否想擴展這個評論。

Yes. So, Tristan, to answer your question, when we provide the Q2 guidance, we do consider the point of sales forecast as well as the channel inventory situation. So -- and then that coupled with the backlog and then some other things that we're seeing. So, yes, it is included into our estimate.

是的。所以，特里斯坦，回答你的問題，當我們提供第二季度指導時，我們確實考慮了銷售點預測以及渠道庫存情況。所以 - 然後加上積壓以及我們看到的其他一些事情。所以，是的，它已包含在我們的估計中。

Okay. And then if I could slip maybe a quick third and last question, otherwise, I'll go back in the queue. But can you say where your utilization rates are currently at the front end? And what type of internal inventory days you need to see on your book before you start ramping utilization rates again?

好的。然後，如果我可以快速提出第三個問題，也是最後一個問題，否則我會回到隊列中。但您能說出目前您的使用率處於前端位置嗎？在再次開始提高利用率之前，您需要在帳簿上看到什麼類型的內部庫存天數？

Well, I would say that we haven't really been communicating our utilization rates. but relatively speaking, what I would say is that we like to run our assembly test in the mid-90s, and we like to run the fabs in the mid-80s, and we're not in that place on either one. We're significantly below that. And we believe that as things pick up and we continue to see strength, that's going to be a tailwind for us, is being able to load our factories.

嗯，我想說的是，我們還沒有真正溝通過我們的使用率。但相對而言，我想說的是，我們喜歡在 90 年代中期運行組裝測試，我們喜歡在 80 年代中期運行晶圓廠，而我們在這兩方面都不處於那個位置。我們遠低於這個水平。我們相信，隨著情況好轉，我們繼續看到實力，這將成為我們的順風，能夠裝載我們的工廠。

That's not something we've been -- we have not maintained our utilizations across the period over the last year as we've seen the softness. As we think about the utilizations over time, what we're -- will be -- our strategy is going to be to maintain utilization consistent with demand as we move. We think we have availability in a good place. We're trying to make sure we're opportunistic. We think that's what we're going to win with that. And so that's the approach we're taking from a factory side.

這不是我們一直以來的情況——我們在去年期間沒有維持我們的利用率，因為我們看到了疲軟。當我們考慮隨著時間的推移的利用率時，我們的策略將是在我們移動時保持利用率與需求一致。我們認為我們有一個好地方。我們正在努力確保我們是機會主義的。我們認為這就是我們將贏得的勝利。這就是我們從工廠方面採取的方法。

And our next question will come from William Stein with Truist Securities.

我們的下一個問題將來自 Truist Securities 的 William Stein。

Great. First, perhaps I'll take another whack at the inventory question. There was a big build, again, sequentially dollars and days. Can you remind us what the long-term inventory target is and when you'd expect to get there approximately?

偉大的。首先，也許我會再討論一下庫存問題。再次，有一個巨大的建設，連續的美元和時間。您能否提醒我們長期庫存目標是什麼以及您預計何時達到該目標？

I'd say on inventory, what we're looking at is trying to -- when we look at our portfolio of 50,000 parts and the availability and the mix, one of the things that we were never able to do is really get availability across the breadth of our portfolio in place, especially off of some of the more critical products and some of our most premium products. And so, we would actually be constrained on some of our best products in terms of availability near-term.

我想說的是，在庫存方面，我們正在努力 - 當我們查看 50,000 個零件的產品組合以及可用性和組合時，我們從未能夠做的事情之一就是真正實現可用性我們現有產品組合的廣度，特別是一些更關鍵的產品和一些最優質的產品。因此，我們的一些最好的產品在近期的可用性方面實際上會受到限制。

And so, what we've done across this period, and you can see it the last couple of quarters is, as we start to get a feeling that we're coming out, seeing light at the end of the tunnel, making sure we're in a position that from availability within that 6 to 8 weeks, we want to have a reasonable mix of product off the shelf. And that is something we're actively working on. We're actively -- both our shelf, we're actually working availability mix with our distributor. We see progress on that, and Emily mentioned it.

因此，我們在這段時間所做的事情，你可以看到，在過去的幾個季度裡，我們開始感覺到我們正在走出去，看到隧道盡頭的曙光，確保我們我們希望在6 到8 週內上市後，能夠提供合理的現成產品組合。這就是我們正在積極努力的事情。我們正在積極地與我們的經銷商進行庫存混合工作。我們看到了這方面的進展，艾蜜莉也提到了這一點。

And I think from a weeks of inventory and finished goods, that's not something we're strategically planning to increase. As we actually see things start to lift up, our goal would be to try to maintain that as we move through -- maintain utilization with demand and be able to basically have an advantage on availability. We think our service is an advantage over time. And certainly, if we have availability there, we think that's going to be an opportunity to gain share and to get momentum as demand picks up.

我認為從幾週的庫存和成品來看，這不是我們策略性計劃增加的東西。當我們實際上看到事情開始好轉時，我們的目標是在我們前進的過程中努力保持這種狀態——保持需求的利用率，並能夠在可用性方面基本上具有優勢。我們認為我們的服務隨著時間的推移具有優勢。當然，如果我們在那裡有可用的資源，我們認為這將是一個獲得份額並隨著需求回升獲得動力的機會。

Yes. Actually, we do see more and more short lead time PO coming in -- really the demand we saw starting from end of the first quarter. So, if we put a right mix of our inventory in our house, we got much better chance to support this kind of rush order.

是的。事實上，我們確實看到越來越多的短交貨期採購訂單進來——這確實是我們從第一季末開始看到的需求。因此，如果我們在家裡正確組合庫存，我們就有更好的機會支持這種緊急訂單。

Just before I go on to my next question, I just want to make sure I understand what you're saying. You're running at about 190 days of inventory. Is that -- it would be, I guess, sort of unusual to hear a company at this point in the cycle, say that they want to maintain that level of inventory, but maybe that's a great strategy. Can you just confirm my understanding? Or are you meaning on a dollars basis, whereby the days would shrink pretty precipitously if revenue rebounded?

在我繼續下一個問題之前，我只想確保我理解你在說什麼。您的庫存可維持約 190 天。我想，在周期的這個階段聽到一家公司表示他們希望維持這種庫存水準是有點不尋常，但也許這是一個很好的策略。能確認一下我的理解嗎？還是你的意思是以美元為基礎，如果收入反彈，日子會急劇縮短？

I think what we're saying, Will, is if you look at the mix of that by finish level across this -- across time, this has not been something that's really changed significantly in terms of the dollar investment that we've made on the raw material side. That's something that kind of feeds our factory as well as we outsource.

威爾，我想我們所說的是，如果你看看整個過程中完成水平的組合——隨著時間的推移，就我們所做的美元投資而言，這並沒有真正發生重大變化。 。這既是我們工廠的原料，也是我們外包的原料。

From a work-in-process perspective, that's something that's really kind of been adjusted as we see demand. But from a finished goods perspective, we have strategically tried to put availability in place to have a better mix of product. What would -- as demand picks up, I would imagine at some point that, that strips away from us. But for some period of time, we're going to try to maintain that kind of 6 to 8 weeks of finished goods availability on average.

從在製品的角度來看，這確實是根據我們的需求進行了調整。但從成品的角度來看，我們從策略上嘗試提高可用性，以實現更好的產品組合。隨著需求的增加，我想在某個時候，我們會失去什麼。但在一段時間內，我們將努力維持平均 6 至 8 週的成品供應時間。

I think that's not something we have across all the parts. We're trying to -- the portfolio is large and broad, but I think that's what you see us trying to do. And when I say trying to maintain, I think we're going to try to hold on to the fact that we believe that having good availability is going to give us a benefit to grow on some of our most premium accounts and premium parts.

我認為這不是我們所有部分都擁有的東西。我們正在努力——產品組合龐大而廣泛，但我認為這就是你看到的我們正在努力做的事情。當我說努力維護時，我認為我們將努力堅持這樣一個事實，即我們相信擁有良好的可用性將為我們帶來一些最優質帳戶和優質部件的成長優勢。

That's really helpful. I had a couple of maintenance questions. Normally, I've asked about the disti versus direct split, but you provided that in the presentation. I appreciate it. One of the other sort of maintenance questions is the year-over-year change in ASP, which you always have in the 10-Q. Also, I was wondering if perhaps you'd start disclosing what book-to-bill is in the quarter and what backlog is in the quarter.

這真的很有幫助。我有幾個維修問題。通常，我會詢問有關 disti 與直接拆分的問題，但您在演示中提供了這一點。我很感激。另一種維護問題是 ASP 的逐年變化，這在 10-Q 中始終存在。另外，我想知道您是否會開始揭露本季的訂單到帳單情況以及本季的積壓情況。

Yes. So let me -- Will, let me answer the question, right? So, direct and distribution is 39% versus 61%. What we usually still using 2/3 versus 1/3 as a rough estimate. Some of the quarter changed a little bit here and there. Specifically, you see 61% with distribution for the Q1 also reflected in my discussion earlier that we're actually seeing the channel inventory value decrease by the end of Q1, right?

是的。那麼讓我——讓我回答這個問題，對吧？因此，直接和分銷比例分別為 39% 和 61%。我們通常仍然使用 2/3 與 1/3 來粗略估計。本季有些地方略有變動。具體來說，您看到 61% 的第一季分配率也反映在我之前的討論中，我們實際上看到通路庫存價值在第一季末有所下降，對嗎？

So, on the weighted ASP change from year-over-year point of view, it actually dropped slightly more than 25%. But there's definitely a mix change in there as well, right? So when we start seeing auto industrial as an example, from the percentage decrease, that's actually directly impacting the weighted average price as well, right?

因此，從加權平均售價同比變化來看，實際上下降了 25% 以上。但其中肯定也有混合變化，對吧？因此，當我們開始以汽車工業為例時，從下降的百分比來看，這實際上也直接影響了加權平均價格，對嗎？

So, if we look from the mix independent point of view, we did actually build in 1.5% to 2% per quarter cost degradation. What we've seen is actually with the mix independent ASP change is actually pretty small and definitely within the range, within our estimate, right? And then how do we really balance that, that's really driving some of the cost down. Manufacturing efficiency that I mentioned earlier, right?

因此，如果我們從獨立於組合的角度來看，我們實際上每季的成本下降了 1.5% 到 2%。我們所看到的是，實際上，與混合無關的 ASP 變化實際上非常小，並且絕對在我們估計的範圍內，對嗎？然後我們如何真正平衡這一點，這確實會降低一些成本。我之前提到的製造效率，對嗎？

And this concludes our question-and-answer session. I'd like to turn the conference back over to Gary Yu for any closing remarks.

我們的問答環節到此結束。我想將會議轉回給 Gary Yu 做閉幕致詞。

Thank you, everyone, for participating on today's call. We look forward to reporting our progress on next quarter's conference call. Operator, you may now disconnect.

謝謝大家參加今天的電話會議。我們期待在下個季度的電話會議上報告我們的進展。接線員，您現在可以斷開連接了。

The conference has now concluded. Thank you for attending today's presentation, and you may now disconnect your lines.

會議現已結束。感謝您參加今天的演示，您現在可以掛斷電話了。