Diodes Inc (DIOD) 2024 Q3 法說會逐字稿

Thank you for standing by. My name is Jeannie, and I will be your conference operator today. At this time, I would like to welcome everyone to the Diodes Incorporated third quarter and fiscal 2024 financial results conference call and webcast. (Operator Instructions)

謝謝你的支持。我叫珍妮，今天我將擔任你們的會議操作員。此時，我謹歡迎大家參加 Diodes 公司第三季和 2024 財年財務業績電話會議和網路廣播。（操作員說明）

Thank you. I would now like to turn the call over to Leanne Sievers. Please go ahead.

謝謝。我現在想把電話轉給 Leanne Sievers。請繼續。

Good afternoon, and welcome to Diodes third 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 and Marketing, Emily Yang; and Director of Investor Relations, Gurmeet Dhaliwal.

下午好，歡迎參加 Diodes 2024 財年第三季財務業績電話會議。我是 Leanne Sievers，Diodes 投資者關係公司謝爾頓集團總裁。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；和投資者關係總監 Gurmeet Dhaliwal。

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 September 30, 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其結算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 9 月 30 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.

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。

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.

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。

In addition, any projections as to the company's future performance represent management's estimate as of today, November 7, 2024. 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.

此外，對公司未來業績的任何預測均代表管理層截至今天（2024 年 11 月 7 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.

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

Also, throughout the company's press release and management 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，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, 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。

Welcome, everyone, and thank you for joining us on today's conference call. Third quarter revenue exceed our expectations increased 9.5% sequentially, while also achieving double-digit POS growth in Asia. At further evidence of market recovery in Asia, our channel inventory continues to improve as both inventory dollars and the inventory days decreased sequentially.

歡迎大家，並感謝您加入我們今天的電話會議。第三季營收超出我們的預期，季增 9.5%，同時亞洲 POS 業務也實現了兩位數成長。隨著亞洲市場復甦的進一步證據，我們的通路庫存持續改善，庫存金額和庫存天數均持續下降。

Additionally, our automotive market revenue increased 18% sequentially to 19% of product revenue, reflecting our ongoing content expansion and the design win initiatives even though both the automotive and the industrial market continue to undergo inventory and the demand adjustments.

此外，我們的汽車市場收入比上一季成長了 18%，佔產品收入的 19%，反映出我們持續的內容擴張和設計獲勝舉措，儘管汽車和工業市場繼續經歷庫存和需求調整。

For the fourth quarter, we are guiding revenue to be better than typical seasonality. Our gross margin expectation continues to reflect factory underloading related to our wafer service agreement and internal demand.

對於第四季度，我們預計營收將優於典型的季節性。我們的毛利率預期繼續反映與我們的晶圓服務協議和內部需求相關的工廠負載不足。

With sufficient capacity available to support future demand improvements, we took the initiative in third quarter to moderate our CapEx investment to below our target model. This action, combined with our past cost reductions will help preserve near-term earnings and the cash flow until the recovery accelerates, especially in the higher-margin automotive and industrial end markets.

由於有足夠的產能來支持未來需求的改善，我們在第三季主動將資本支出投資降至目標模型以下。這項行動與我們過去的成本削減相結合，將有助於保持近期收益和現金流，直到復甦加速，特別是在利潤率較高的汽車和工業終端市場。

With that, let me now turn the call over to Brett to discuss our third quarter financial results as well as our fourth 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三季的財務表現以及第四季的指導。

Thanks, Gary, and good afternoon, everyone. Revenue for the third quarter of 2024 was $350.1 million compared to $319.8 million in the second quarter 2024 and $404.6 million in the third quarter 2023.

謝謝加里，大家下午好。2024 年第三季的營收為 3.501 億美元，而 2024 年第二季的營收為 3.198 億美元，2023 年第三季的營收為 4.046 億美元。

Gross profit for the third quarter was $118 million or 33.7% of revenue compared to $107.4 million or 33.6% of revenue in the prior quarter and $155.9 million or 38.5% of revenue in the prior year quarter.

第三季的毛利為1.18 億美元，佔營收的33.7%，而上一季的毛利為1.074 億美元，佔營收的33.6%，上一季的毛利為1.559 億美元，佔營收的38.5 %。

GAAP operating expenses for the third quarter were $96.1 million or 27.5% of revenue. And on a non-GAAP basis, were $91.7 million or 26.2% of revenue, which excludes $3.8 million of amortization of acquisition-related intangible asset expenses, $0.8 million in acquisition-related costs and $0.2 million adjustment on restructuring charges.

第三季 GAAP 營運費用為 9,610 萬美元，佔營收的 27.5%。以非公認會計準則計算，為 9,170 萬美元，佔收入的 26.2%，其中不包括 380 萬美元的收購相關無形資產費用攤銷、80 萬美元的收購相關成本以及 20 萬美元的重組費用調整。

This compares to GAAP operating expenses in the prior quarter of $103.7 million or 32.4% of revenue and in the third quarter 2023 of $102 million or 25.2% of revenue. Non-GAAP operating expenses in the prior quarter were $90.9 million or 28.4% of revenue.

相較之下，上一季的 GAAP 營運費用為 1.037 億美元，佔營收的 32.4%；2023 年第三季的 GAAP 營運費用為 1.02 億美元，佔營收的 25.2%。上一季的非 GAAP 營運費用為 9,090 萬美元，佔營收的 28.4%。

Total other expense amounted to approximately $3.1 million for the quarter, consisting the $4.5 million of interest income, $3.4 million of unrealized losses from investments, $4.4 million of foreign currency loss and $0.7 million of other income and $0.5 million in interest expense.

本季其他費用總額約為 310 萬美元，其中包括 450 萬美元的利息收入、340 萬美元的未實現投資損失、440 萬美元的外匯損失以及 70 萬美元的其他收入和 50 萬美元的利息支出。

Income before taxes and non-controlling interest in the third quarter 2024 was $18.8 million compared to $12.8 million in the previous quarter and $60.5 million in the prior year quarter.

2024 年第三季稅前及非控股權益前收入為 1,880 萬美元，上一季為 1,280 萬美元，上年同期為 6,050 萬美元。

Turning to income taxes. Our effective income tax rate for the third quarter was approximately 19.2%. GAAP net income for the third quarter was $13.7 million or $0.30 per diluted share compared to $8 million or $0.17 per diluted share last quarter and $48.7 million or $1.05 per diluted share in the prior year quarter.

轉向所得稅。我們第三季的有效所得稅率約為 19.2%。第三季GAAP 淨利為1,370 萬美元，即稀釋後每股收益0.30 美元，而上一季的GAAP 淨利為800 萬美元，即稀釋後每股收益0.17 美元，去年同期淨利為4,870 萬美元，即稀釋後每股收益1.05 美元。

The share count used to compute GAAP diluted EPS in the third quarter was 46.4 million shares. Non-GAAP adjusted net income in the third quarter was $20.1 million or $0.43 per diluted share, which excluded net of tax $3.1 million of acquisition-related asset costs, $2.7 million of non-cash mark-to-market investment value adjustment, $0.6 million of acquisition costs and $0.2 million in a restructuring adjustment.

用於計算第三季 GAAP 攤薄每股盈餘的股票數量為 4,640 萬股。第三季非GAAP 調整後淨利為2,010 萬美元，即稀釋後每股收益0.43 美元，其中扣除稅後310 萬美元的收購相關資產成本、270 萬美元的非現金按市值計算的投資價值調整、 60 萬美元的收購成本和 20 萬美元的重組調整。

This compares to $15.4 million or $0.33 per diluted share in the prior quarter and $52.5 million or $1.13 per diluted share in the third quarter 2023. Excluding non-cash share-based compensation of $5.9 million net of tax for the third quarter, GAAP and non-GAAP earnings per share would have increased by $0.13 per share.

相比之下，上一季為 1,540 萬美元，即稀釋後每股 0.33 美元；2023 年第三季為 5,250 萬美元，即稀釋後每股 1.13 美元。不包括第三季 590 萬美元的非現金股權薪資（稅後淨額），GAAP 和非 GAAP 每股盈餘將增加 0.13 美元。

EBITDA for the third quarter was $46.9 million or 13.4% of revenue compared to $41.1 million or 12.8% of revenue in the prior quarter and $90.6 million or 22.4% of revenue in the third quarter of 2023. 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.

第三季 EBITDA 為 4,690 萬美元，佔營收的 13.4%，而上一季為 4,110 萬美元，佔營收的 12.8%，2023 年第三季為 9,060 萬美元，佔營收的 22.4%。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 provided by operations was $54.4 million for the third quarter. Free cash flow was $39.4 million, which included $15 million for capital expenditures. Net cash flow was $49.4 million, including the borrowing of $9.7 million of total debt.

第三季營運提供的現金流為 5,440 萬美元。自由現金流為 3,940 萬美元，其中包括 1,500 萬美元的資本支出。淨現金流量為 4,940 萬美元，其中包括債務總額 970 萬美元的借款。

Turning to the balance sheet. At the end of third quarter, cash, cash equivalents, restricted cash plus short-term investments totaled approximately $325 million. Working capital was approximately $910 million in total debt including long-term and short-term was approximately $58 million.

轉向資產負債表。截至第三季末，現金、現金等價物、限制性現金加上短期投資總計約 3.25 億美元。營運資金約 9.1 億美元，包括長期和短期在內的總債務約為 5,800 萬美元。

In terms of inventory, at the end of the third quarter, total inventory days were approximately 187 as compared to 191 last quarter. Finished goods inventory days were 79 compared to 79 last quarter. Total inventory dollars increased $20.5 million from the prior quarter to $482 million.

庫存方面，第三季末，總庫存天數約為187天，而上季為191天。成品庫存天數為 79 天，而上季為 79 天。庫存總額較上一季增加 2,050 萬美元，達 4.82 億美元。

Total inventory in the quarter consisted of a $21.2 million increase in raw materials, a $5.1 million increase in finished goods and a $5.8 million decrease in work in process. Capital expenditures on a cash basis were $15 million for the third quarter or 4.3% of revenue and below our targeted range of 5% to 9%.

本季的總庫存包括原材料增加 2,120 萬美元、製成品增加 510 萬美元以及在製品減少 580 萬美元。第三季現金資本支出為 1,500 萬美元，佔營收的 4.3%，低於我們 5% 至 9% 的目標範圍。

As Gary mentioned, we took the initiative to moderate our CapEx investments to below our target model since we have the available capacity to meet future increases in demand. This actioned helped to maintain our strong cash flow generation during the quarter.

正如加里所提到的，我們主動將資本支出投資降至目標模型以下，因為我們有能力滿足未來需求的成長。此舉有助於我們在本季度保持強勁的現金流生成。

Now turning to our outlook. For the fourth quarter of 2024, we expect revenue to be approximately $337 million, plus or minus 3%, representing a 3.7% sequential decrease at the midpoint. GAAP gross margin is expected to be 33%, plus or minus 1%.

現在轉向我們的展望。對於 2024 年第四季度，我們預計營收約為 3.37 億美元，正負 3%，中位數環比下降 3.7%。GAAP 毛利率預計為 33%，上下浮動 1%。

Non-GAAP operating expenses, which are GAAP operating expenses adjusted for amortization of acquisition-related intangible assets are expected to be approximately 28% of revenue, plus or minus 1%. We expect net interest income to be approximately $2.5 million.

非 GAAP 營運費用（根據收購相關無形資產攤銷調整後的 GAAP 營運費用）預計約為收入的 28%，上下浮動 1%。我們預計淨利息收入約為 250 萬美元。

Our income tax rate is expected to be 18%, plus or minus 3%. And the shares used to calculate EPS for the fourth quarter are anticipated to be 46.7 million. Not included in these non-GAAP estimates is amortization of $3.1 million after tax for previous acquisitions.

我們的所得稅稅率預計為18%，正負3%。用於計算第四季每股收益的股票預計為4670萬股。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 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 third quarter increased 9.5% sequentially and above the midpoint of our guidance. Our global POS increased in the quarter with a more than 10% increase in Asia.

謝謝你，布雷特，下午好。第三季營收季增 9.5%，高於我們指引的中點。本季我們的全球 POS 有所成長，其中亞洲的增幅超過 10%。

Looking at global sales in the third quarter, Asia represented 78% of the revenue; Europe, 15%; and North America, 7%. In terms of our end markets, industrial was 23% of Diodes product revenue; automotive, 19%; computing, 25%; consumer, 18%; and communication, 15% of the product revenue.

從第三季的全球銷售額來看，亞洲佔營收的78%；歐洲，15%；北美為 7%。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，19%；計算，25%；消費者，18%；和通訊，佔產品收入的15%。

Our automotive industrial revenue combined totaled 42% of product revenue which is the 10th consecutive quarter above our target model of 40% and 1 percentage point higher than last quarter, primarily driven by our ongoing content expansion and design win initiatives in automotive market even though both market continues to undergo inventory and demand adjustments.

我們的汽車工業收入合計佔產品收入的42%，連續第10 個季度高於我們40% 的目標模型，比上季度高出1 個百分點，這主要是由我們在汽車市場持續的內容擴展和設計獲勝計劃推動的，儘管市場庫存和需求持續調整。

As further evidence of broader market recovery in Asia, our channel inventory continues to improve as both inventory dollars and inventory days decreased sequentially. Visibility into the backlog continues to be limited, and we are still receiving short lead time orders. So it's important for us to maintain a sufficient level of finished goods inventory as well as channel inventory to meet the potential increase in demand.

作為亞洲更廣泛市場復甦的進一步證據，我們的通路庫存持續改善，庫存金額和庫存天數均持續下降。積壓訂單的可見性仍然有限，我們仍然收到交貨時間短的訂單。因此，保持充足的成品庫存和通路庫存水準以滿足潛在的需求成長非常重要。

Now let me review the end markets in greater details. Starting with Automotive market, revenue was 19% of our total product revenue which was up from 18% last quarter due to our content expansion, demand creation momentum and market share gains across multiple applications, especially in Asia and China.

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19%，高於上季度的18%，這得益於我們的內容擴張、需求創造動力以及跨多個應用（尤其是亞洲和中國）的市場份額的增長。

As I mentioned, inventory rebalancing continued in the third quarter at some customers, and we expect this would extend into the fourth quarter. However, I will point out that even though the overall market in North America and Europe is still slow, a number of key customers were up in the quarter, especially in the China market.

正如我所提到的，一些客戶在第三季繼續進行庫存重新平衡，我們預計這種情況將延續到第四季。不過，我要指出的是，儘管北美和歐洲的整體市場仍然緩慢，但一些關鍵客戶在本季有所成長，尤其是在中國市場。

On the product portfolio expansion continues into the quarter with the introduction of 115 new automotive compliance parts focused on connected driving, comfort, style, safety and electrification for applications like protection, high-speed and high-bandwidth ethernet network protection, battery management system, infotainment, ADAS and hybrid electric vehicles, automotive subsystems, including battery chargers, onboard chargers and high-efficiency DC-DC converters.

產品組合擴展持續到本季度，推出了 115 種新的汽車合規部件，專注於互聯駕駛、舒適性、風格、安全性和電氣化，適用於保護、高速和高頻寬乙太網路保護、電池管理系統、資訊娛樂、ADAS 和混合動力電動車、汽車子系統，包括電池充電器、車載充電器和高效能DC-DC 轉換器。

Additionally, our TVS Hall sensor high-end differential crystal oscillators and PCI Express clock ICs along with PCI Express Gen 6 clock buffers and real-time clock modules are seeing tractions in ADAS, cockpit, infotainment, telematic control units, dashboard and battery management systems.

此外，我們的TVS 霍爾感測器高階差分晶體振盪器和PCI Express 時鐘IC 以及PCI Express Gen 6 時鐘緩衝器和即時時鐘模組在ADAS、駕駛艙、資訊娛樂、遠端資訊處理控制單元、儀表板和電池管理系統中得到了廣泛應用。

We are also seeing fast adoption of our small-lane count PCI Express package switches, USB Type-C ReDrivers and active Crossbar Muxs for rear seat entertainment and smart cockpit applications. In the Industrial market, third quarter revenue represented 23% of total product revenue, which was flat to last quarter but up in terms of revenue. As I mentioned earlier, the end market continues to undergo inventory rebalancing, coupled with slower demand, and this may last into early next year. Despite the ongoing inventory adjustments, we continue to gain traction with our design wins in industrial market. During the quarter, our TVS product were being used in battery management systems for energy storage products while our linear LED drivers were being designed in for digital signage and traffic signs. Additionally, our wide VIN LDOs continue to see growth from fans, power tools and e-meter applications.

我們還看到我們的小通道數 PCI Express 封裝交換器、USB Type-C 轉接驅動器和主動 Crossbar 多工器在後座娛樂和智慧駕駛艙應用中的快速採用。在工業市場，第三季營收佔產品總營收的23%，與上季持平，但營收有所上升。正如我之前提到的，終端市場繼續進行庫存再平衡，加上需求放緩，這種情況可能會持續到明年初。儘管庫存不斷調整，但我們在工業市場的設計勝利中繼續獲得吸引力。本季度，我們的 TVS 產品被用於儲能產品的電池管理系統，而我們的線性 LED 驅動器則被設計用於數位看板和交通標誌。此外，我們的寬 VIN LDO 持續因風扇、電動工具和電子電錶應用而成長。

We also continue to gain increasing momentum for our silicon carbide commercial grade products for applications like power factor correction for power supply in servers, charging stations, solar inverters, energy storage systems, converters, medical power supplies and heat pumps. And our content image sensor products have multiple design-ins and design wins ins in various applications like battery film inspection, check scanners and ATM money scanners.

我們的碳化矽商業級產品的應用也不斷獲得成長動力，例如伺服器電源功率因數校正、充電站、太陽能逆變器、儲能係統、轉換器、醫療電源和熱泵。我們的內容影像感測器產品在電池膠片檢查、支票掃描器和 ATM 鈔票掃描器等各種應用中擁有多種設計和設計優勢。

In the Computing market, overall channel inventory is healthy. Our design pipeline continued to expand into the AI data center and AI servers as the market continues to grow. AI server designs requires a low lane count PCI Express switch to expand the CPU input-output requirements. Diodes is well positioned to address this market requirement. We also saw a very strong design momentum into the AI-related subsystems like DC fans, power supply units, DC-DC bricks and backup battery units. We also seeing good growth and demand in enterprise SSDs and consumer-grade storage with our high speed Muxs and bus switches solutions.

在計算市場，整體通路庫存狀況良好。隨著市場的不斷增長，我們的設計管道繼續擴展到人工智慧資料中心和人工智慧伺服器。AI 伺服器設計需要低通道數 PCI Express 交換器來擴展 CPU 輸入輸出要求。Diodes 能夠很好地滿足這一市場需求。我們也看到了人工智慧相關子系統（如直流風扇、電源裝置、DC-DC 模組和備用電池裝置）的強勁設計動力。透過我們的高速多工器和匯流排交換器解決方案，我們也看到企業 SSD 和消費級儲存的良好成長和需求。

Also in the computing market, our ultra-low jitter crystal oscillators are being used in 800-gig and 1.6T switches and optical module applications. NIC card and GPU card demand remains strong, which is where our standard high-speed current steering logic LP-HCSL crystal oscillator and PCI Express clock are being adopted by major platforms.

同樣在計算市場，我們的超低抖動晶體振盪器也用於 800g 和 1.6T 交換器以及光模組應用。NIC卡和GPU卡需求仍然強勁，這也是我們的標準高速電流控制邏輯LP-HCSL晶體振盪器和PCI Express時鐘被主要平台採用的地方。

During the quarter, we experienced strong momentum for different protocol ReDrivers and Mux switches, including HDMI, USB-C, DisplayPort, embedded DisplayPort and MIPI in many applications like workstations, gaming, laptop/desktop, docking stations and monitors.

本季度，我們在工作站、遊戲、筆記型電腦/桌上型電腦、擴充座和顯示器等許多應用中經歷了不同協議ReDriver 和Mux 交換器的強勁發展勢頭，包括HDMI、USB-C、DisplayPort、嵌入式DisplayPort 和MIPI 。

Diodes LDOs, USB-C, power switches and high-surge TVS product also received solid demand from power delivery 5-volt source applications in notebook, desktop, docking stations and server DC fans. Additionally, our 10-gigabit per second single-chip USB Type-C controllers with integrated Muxes are gaining strong traction in IP cameras as well as LTE routers, tablets and notebooks.

Diodes LDO、USB-C、電源開關和高突波 TVS 產品也受到筆記型電腦、桌上型電腦、擴充座和伺服器直流風扇中 5 伏特電源供電應用的強勁需求。此外，我們具有整合多路復用器的每秒 10GB 單晶片 USB Type-C 控制器在 IP 攝影機以及 LTE 路由器、平板電腦和筆記型電腦中獲得了強大的吸引力。

Also in the computing, our four channel linear LED drivers saw increasing demand from TV/monitor backlight applications. A our MOSFETs and high-surge protection devices are winning new designs n server power o-ring applications with server and inter-process communication customers.

同樣在運算領域，我們的四通道線性 LED 驅動器看到了電視/顯示器背光應用的需求不斷增長。我們的 MOSFET 和高突波保護元件在伺服器電源 O 形圈應用中贏得了伺服器和進程間通訊客戶的新設計。

Turning to Consumer markets. Similar to the PC market, inventory is clean. Even though the overall demand is not as strong as we expected, customer demand is generally stronger than last year.

轉向消費市場。與個人電腦市場類似，庫存是乾淨的。儘管整體需求不如我們預期強勁，但客戶需求整體強於去年。

In terms of design wins, our TVS Diode array products are being adopted in display units and our high-surge TVS products are seeing strong growth in power delivery systems.

在設計方面，我們的 TVS 二極體陣列產品正在顯示單元中採用，而我們的高突波 TVS 產品在電力傳輸系統中也出現了強勁成長。

We are also seeing design win traction for our bipolar junction transistor products in home appliances, and for our gate drivers in large screen display power supply as well as our 5 flow charge pump products in TV remote controls.

我們還看到我們的家用電器中的雙極結型電晶體產品、大螢幕顯示電源中的閘極驅動器以及電視遙控器中的 5 流電荷泵產品的設計贏得了關注。

We also secured new design wins for our charger USB power delivery solutions in mobile applications and our audio stereo amplifiers in the headphone jacks as well as DC products in monitors and TV applications.

我們還為行動應用中的充電器 USB 供電解決方案、耳機插孔中的音訊立體聲擴大機以及顯示器和電視應用中的直流產品贏得了新的設計勝利。

Lastly, in the Communications market, our enterprise side, due to the slower-than-expected demand, the inventory depletion rate has been slow, and we expect this may last into the first quarter before returning to the healthy level.

最後，在通訊市場，我們的企業端，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第一季度，然後才會恢復到健康水準。

We have many new designs in the AI data center and are seeing strong design momentum for PCI Express package switches, MOSFETs and crystal oscillators in data center optical modules. On the smartphone side, we saw increased demand in the third quarter. Our BatteryFETs with design into many smartphone modules and revenue is ramping up.

我們在人工智慧資料中心有許多新設計，並且看到資料中心光模組中 PCI Express 封裝開關、MOSFET 和晶體振盪器的強勁設計勢頭。在智慧型手機方面，我們看到第三季的需求增加。我們的 BatteryFET 已設計到許多智慧型手機模組中，收入正在增加。

In summary, we are pleased with the strong growth we achieved in the third quarter, especially in the automotive market, where we have been expanding our content and gaining increasing design win momentum.

總而言之，我們對第三季度實現的強勁成長感到滿意，特別是在汽車市場，我們一直在擴展我們的內容並獲得不斷增長的設計獲勝動力。

We are also encouraged by the strong POS performance during the quarter, especially in Asia. Although the overall demand recovery remains slow, we are well positioned with available capacity to meet future demand increases as well as continued margin expansion as the global market recovered, especially within automotive and industrial markets.

我們也對本季 POS 的強勁表​​現感到鼓舞，尤其是在亞洲。儘管整體需求復甦仍然緩慢，但我們的可用產能足以滿足未來需求的成長以及隨著全球市場復甦而持續的利潤率擴張，特別是在汽車和工業市場。

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

現在我們開始提問。操作員？

(Operator Instructions) David Williams, Benchmark.

（操作員說明）David Williams，基準。

Hey, good afternoon and thanks for taking my questions, everyone. I guess, maybe first if I could, Emily sounds like there was quite a bit of demand improvement coming from Asia. And just wondering if you can maybe talk through some of that, where you're seeing it. And maybe what's not doing as well?

嘿，下午好，謝謝大家回答我的問題。我想，也許首先，如果可以的話，艾蜜莉聽起來亞洲的需求有相當大的改善。只是想知道你是否可以談談你所看到的一些內容。也許還有什麼地方做得不好？

There seems to be some mixed messaging that's coming out of the region. Just kind of wondering if you could help us understand where your demand is and how you expect that to trend through maybe the fourth quarter and into next year?

該地區似乎發出了一些混雜的訊息。只是想知道您是否可以幫助我們了解您的需求在哪裡以及您預計第四季度和明年的趨勢如何？

Yeah. So hi, David. We're definitely seeing good demand coming through Asia. As you can see, right, we actually achieved 9.5% growth quarter-over-quarter. And within Asia, we're actually seeing across the board from all the regions, not a specific one, the one I point now is specific to China because among all this is actually the highest growth area, right, especially in the automotive market.

是的。嗨，大衛。我們確實看到了亞洲的良好需求。正如您所看到的，我們實際上實現了 9.5% 的季度環比增長。在亞洲內部，我們實際上看到的是所有地區的全面情況，而不是特定的地區，我現在指出的是中國特有的地區，因為這實際上是成長最快的地區，對吧，尤其是在汽車市場。

I think in general, what we're seeing is even automotive market still inventory rebalancing going on, adjustment going on, but we're also seeing some customers start depleting inventory faster than the others. So definitely, this is good to see some movements over there, right?

我認為總的來說，我們看到的是，即使汽車市場仍在進行庫存再平衡、調整，但我們也看到一些客戶開始比其他客戶更快地消耗庫存。所以，很高興看到那邊有些動靜，對嗎？

So as a result, we actually grow our overall percentage from 18% to 19%. This also contributed to some of the content expansion driven by some of the past design-ins, design wins, of course, also gained some of the market share. So, this again, it's across all regions.

因此，我們實際上將整體百分比從 18% 提高到了 19%。這也促成了一些由過去的設計引入所推動的內容擴展，設計獲勝，當然也獲得了一些市場份額。所以，這又是遍佈所有地區的。

At the same time, what we see in industrial is still challenging, but not everybody the same, not everything equal. So, we've also seen some movements, but still slow at this moment. I think for the computing, it's definitely a segment that we're seeing good momentum in the third quarter and especially driven more on the AI server type of areas and stuff like that. So that's really exciting to see.

同時，我們在工業中看到的情況仍然具有挑戰性，但並非每個人都一樣，也不是所有事情都是平等的。所以，我們也看到了一些動作，但目前仍然很慢。我認為對於計算來說，這絕對是我們在第三季度看到良好勢頭的一個領域，特別是在人工智慧伺服器類型的領域和類似的東西上得到了更多的推動。所以這真的很令人興奮。

On the communications area, I would say majority of the activity upside is driven by some of the smartphones, especially the US-based customer that Q3 always been a strong quarter. And this year, we've definitely seen good results also from some of the content expansion that we did.

在通訊領域，我想說，大部分活動上漲是由某些智慧型手機推動的，尤其是美國客戶，第三季一直是強勁的季度。今年，我們所做的一些內容擴充也確實取得了良好的成果。

And then on the consumer side, Q3 is always a peak for consumer market, right? So, we definitely see some customers doing better than the others. But overall, it's exciting to see some movement. And I would say, all in all, it's improvement from last year. So that's really what we see.

那麼在消費方面，第三季始終是消費市場的高峰，對嗎？因此，我們確實看到一些客戶比其他客戶做得更好。但總的來說，看到一些變化還是令人興奮的。我想說，總而言之，比去年有所進步。這就是我們所看到的。

And then going to the Q4, I think auto will continue going through some inventory adjustments. We do expect Q4 probably going to be a slightly down quarter. From the industrial point of view, I think the inventory adjustment definitely will be ongoing. So, we expect that's probably going to be a down quarter as well.

然後到第四季度，我認為汽車將繼續進行一些庫存調整。我們確實預計第四季度可能會略有下降。從行業角度來看，我認為庫存調整肯定會持續進行。因此，我們預計這也可能是個下降的季度。

Computing, we are expecting somewhere between flat, maybe slightly up. And then with consumer, Q4 is always a down quarter because most of the holiday will be done and so we don't really expect that's going to be a significant up. We also have some of the holiday stuff like that. Definitely have less number of ship days in North America and also in Europe.

計算方面，我們預期介於持平或略有上升之間。然後，對於消費者來說，第四季度始終是一個下降的季度，因為大部分假期都會結束，所以我們並不真正期望這會出現顯著的上升。我們也有一些類似的節日物品。北美和歐洲的船舶天數肯定較少。

On the communications side, I think enterprise inventory adjustment or rebalancing with ongoing. Smartphone, again, similar to the consumer. Usually, the fourth quarter is not going to be a super strong quarter. So that's really what we see.

在溝通方面，我認為企業庫存調整或再平衡正在進行中。智慧型手機再次與消費者類似。通常，第四季度不會是超級強勁的季度。這就是我們所看到的。

Lots of really great color there. Thank you for that. And then maybe, Brett, if I could, just on the gross margin, it seemed like there was a little bit more pressure on the guidance side, just relative to the typical drop that we would see there.

那裡有很多很棒的顏色。謝謝你。然後，布雷特，如果可以的話，就毛利率而言，與我們在那裡看到的典型下降相比，指導方面的壓力似乎更大一些。

And just wondering if there's anything additional that's maybe playing into that? Is it utilization mix? Or how should we think about that gross margin? And then is that something that will recover into the new year? Thank you.

只是想知道是否有其他因素可能參與其中？是利用組合嗎？或者我們應該如何看待毛利率？那麼這種情況會在新的一年恢復嗎？謝謝。

Yeah. I think the right way to think about that, David, is that you have a few different things coming together that do put pressure on that. As Emily talked about it, we had strength in third quarter, that strength was not really on the full auto plus industrial. It did have some automotive strength.

是的。大衛，我認為正確的思考方式是，一些不同的事情結合在一起確實會給這一點帶來壓力。正如艾蜜莉所說，我們在第三季表現強勁，但這種優勢並不是真正體現在汽車加工業領域。它確實具有一定的汽車實力。

As we transition into fourth, we transition down. That puts pressure on margin. The mix of where we see things carrying into fourth puts pressure. And on top of it, we continue to have strategic investments in our additional capacity that's coming on. But currently, we have service contract arrangements, there's weakness there. And in that weakness reflects itself as the overall market is softer for our customers. And so, I think the combination of those things culminated in the fourth quarter.

當我們過渡到第四時，我們會向下過渡。這給利潤率帶來了壓力。我們看到進入第四的事情的混合會帶來壓力。最重要的是，我們繼續對即將增加的產能進行策略性投資。但目前，我們的服務合約安排有弱點。對於我們的客戶來說，整體市場更加疲軟，這種弱點就反映出來。因此，我認為這些因素的結合在第四季度達到了頂峰。

But I think as we transition into 2025, there's really nothing about that, that sets any new trend or something that doesn't recover as we transition in because we're making great progress on qualifying our own products in both GFAB and SPFAB. And we are making great progress with the mix of our product portfolio, continuing to be more automotive, industrial, analog and high-end discrete products. So we're really confident about that.

但我認為，當我們過渡到 2025 年時，確實不會出現任何新趨勢或在我們過渡時不會恢復的東西，因為我們在 GFAB 和 SPFAB 認證方面取得了巨大進展。我們的產品組合組合正在取得巨大進步，繼續向汽車、工業、類比和高端分立產品傾斜。所以我們對此非常有信心。

Okay. All right, perfect. And if I could squeeze just one last one in, Just curious how you're thinking about maybe the new administration and given the China exposure you have or the leverage, however you may want to see it.

好的。好吧，完美。如果我能插上最後一句，只是好奇你如何看待新政府，以及考慮到你所擁有的中國風險或影響力，無論你可能想看到什麼。

And then just some of the other puts and takes around that. Is there anything that you would point to that you're concerned with? Or I guess, any puts and takes that you're thinking about here around that? Thank you.

然後還有一些其他的 put 和 take 來解決這個問題。您有什麼需要指出的嗎？或者我猜，您正在考慮圍繞這一點的任何看跌期權和看跌期權嗎？謝謝。

Yeah. Maybe David, this is Emily, let me answer first. I think if we look at China, you look at the total China revenue for Diodes, even it shows like 43% to our total, but the actual local China portion is a much smaller portion, right?

是的。也許大衛，這是艾米麗，讓我先回答。我想如果我們看看中國，你會看到 Diodes 在中國的總收入，即使它占我們總收入的 43%，但實際的中國本地部分要小得多，對嗎？

Taking that aside, just from the opportunity point of view, I believe we still have a lot of potential to grow in China because a lot of customers really looking for the goods, they call it the CP value, which is cost performance value. So if Diodes continue to drive new products with differentiated functions and features, and we continue to drive our total solution sales approach, there's still a lot of opportunity in front of us, right?

拋開這些，單從機會的角度來看，我相信我們在中國還有很大的成長潛力，因為很多客戶真的在尋找商品，他們稱之為CP值，即性價比。因此，如果 Diodes 繼續推出具有差異化功能和特性的新產品，並且我們繼續推動整體解決方案銷售方式，那麼我們面前仍然有很多機會，對嗎？

I think related to politics, I don't know how to judge. I think overall, as a company, we are well positioned to adapt to whatever the government policy is going to come next. So I think that is a little bit unknown at this moment, but we definitely are watching very closely.

我覺得跟政治有關，我不知道該如何判斷。我認為總的來說，作為一家公司，我們有能力適應政府接下來的任何政策。所以我認為目前這還有些未知，但我們肯定正在密切關注。

But overall, with all the flexibility we built in on the hybrid manufacturing model, the way we continue to drive additional loadings, especially into the US and Europe region, I believe that gives us a lot of flexibility to adjust based on the new government policy.

但總的來說，憑藉我們在混合製造模式上建立的所有靈活性，我們繼續推動額外負載的方式，特別是在美國和歐洲地區，我相信這給了我們很大的靈活性，可以根據新的政府政策進行調整。

Yeah. And Dave, this is Gary. I would like put more color on that. And as Emily mentioned about that we try to keep our business flexibility in both China and non-China customer by leveraging our make function footprint in Greater China as well as in Europe and North America.

是的。戴夫，這是加里。我想在上面加上更多的顏色。正如艾米麗所提到的，我們試圖透過利用我們在大中華區以及歐洲和北美的製造功能足跡來保持我們在中國和非中國客戶的業務靈活性。

So has been said here, we don't give up any business anywhere, and we cannot control any political policy between China and the US. But what we can continue doing here is to continue to penetrate, doing more design ins and drive more POs in both two regions.

所以這裡說了，我們不會放棄任何地方的生意，我們也無法控制中美之間的任何政治政策。但我們在這裡可以繼續做的是繼續滲透，在這兩個地區進行更多的設計並推動更多的採購訂單。

William Stein, Truist.

威廉·斯坦因，真理論者。

Great. Thanks for taking my questions. I'm hoping you can disclose to us what you have in the past in terms of the split of revenue by distribution channel versus direct customers, and also the split of growth between units and pricing. And then I do have a follow up. Thank you.

偉大的。感謝您回答我的問題。我希望您能向我們透露您過去在分銷管道與直接客戶之間的收入分配情況，以及單位和定價之間的成長分配情況。然後我確實有後續行動。謝謝。

Let me address the first question first. It's really the split between distribution and direct. Q3, our number is actually 64% distribution, 36% direct. And then Q2 is 63% versus 37%. So, if I look from the trend point of view, I would say, I will always refer to two-third, one-third.

我先回答第一個問題。這實際上是分銷和直接之間的分歧。第三季度，我們的數字實際上是 64% 分銷，36% 直接。第二季的比例為 63% 對 37%。所以，如果我從趨勢的角度來看，我會說，我永遠會指三分之二、三分之一。

I think back in 2022, the distribution percentage is slightly higher. And right now, it's really pretty much down to the 64%, 63% range for distribution versus direct. And then the number of -- yeah, go ahead.

我認為在 2022 年，分配比例會稍微高一些。現在，分銷與直銷的比例實際上已經下降到了 64%、63% 的範圍。然後是——是的，繼續。

Yeah. The growth -- I think you normally disclose, I forgot if it's sequential or year-over-year, but you disclosed growth in units and then I think we can use that to calculate -- in a sense, the combination of mix and pricing?

是的。成長——我認為你通常會披露，我忘記了它是連續的還是同比增長，但你披露了單位的增長，然後我認為我們可以用它來計算——在某種意義上，組合和定價的組合？

Yeah. So Will, what we do disclose is the year-over-year pricing and that was about a 10% impact, but essentially, doesn't appreciate. It's more of a just a pure unit perspective.

是的。那麼威爾，我們所揭露的是同比定價，大約有 10% 的影響，但本質上並沒有升值。它更多的是純粹的單位視角。

Yeah. So basically, the product mix is not in this picture.

是的。所以基本上，產品組合不在這張圖。

Yeah. I see. Okay, thank you for that. And as a follow up -- pardon me, I had one and I got a lot going on here. I apologize for the noise. It's about seasonality. You highlighted that the guidance is above seasonal. I think, it's just a hair above our expectation of typical seasonality in Q4.

是的。我懂了。好的，謝謝你。作為後續行動——請原諒我，我有一個，我在這裡發生了很多事情。我對噪音表示歉意。這與季節性有關。您強調指出指導高於季節性。我認為，這僅比我們對第四季典型季節性的預期高出一點點。

But I appreciate the characterization. Do you think we're in a period now where we should expect the next several quarters to be above seasonal as this catch-up from under-shipping demand in the last few quarters? Or is it too early to call that sort of more, let's say, solid turn in the cycle?

但我很欣賞這個人物塑造。您認為我們現在所處的時期是否應該預期未來幾季的產量將高於季節性，因為過去幾季出貨量不足的需求已經迎頭趕上？或者說現在稱之為週期的堅實轉變是否還為時過早？

Yeah. I think, I mean, William, the challenge we have is the dynamic of the market, right? And I call it better than seasonality because there's definitely quarters that we actually dropped a lot more than 3.7%. There are some quarters I see going back to the history, there's like minus 7%, 6.8%.

是的。我想，我的意思是，威廉，我們面臨的挑戰是市場的動態，對吧？我稱之為比季節性更好，因為肯定有幾個季度我們的實際跌幅遠超 3.7%。我認為有些季度可以追溯到歷史，例如-7%、6.8%。

Of course, there are some quarters may be slightly better. And I usually refer to the seasonality is about 5% down in the fourth quarter. So that's the reason we call it better than the usual seasonality.

當然，有一些季度可能會稍微好一點。我通常指的是第四季季節性下降約5%。這就是我們稱其比通常的季節性更好的原因。

Related to what to expect next year, I think, all in all, I think we are confident that things will get better. So, the big question is when? So, if you look from the logical point of view, it took about eight quarters for the PC to adjust the inventory and now, we have a little bit more than a year into the inventory adjustments for automotive/industrial already.

與明年的預期相關，我認為，總而言之，我認為我們有信心事情會變得更好。所以，最大的問題是什麼時候？因此，如果從邏輯的角度來看，個人電腦大約花了八個季度來調整庫存，而現在，我們已經有一年多的時間來調整汽車/工業的庫存了。

I think the positive sign I mentioned, there are some customers getting into a healthier position already than the others. So, it's really difficult for me to call it exactly, but we are pretty confident that things will get better. We usually don't provide guidance more than a quarter. But at the same time, we are confident next year will be a growth year.

我認為我提到的積極跡像是，有些客戶已經比其他客戶處於更健康的狀態。所以，我真的很難準確地稱呼它，但我們非常有信心事情會變得更好。我們通常不會提供超過四分之一的指導。但同時，我們有信心明年將是成長的一年。

And one final one if I can. What is the company's view as to typical seasonality in Q1?

如果可以的話，還有最後一張。公司對第一季的典型季節性有何看法？

Q1 because we have Chinese New Year, right? So usually, we call the Q1 usual seasonality is about 5% down.

Q1 因為我們有農曆新年，對吧？所以通常情況下，我們稱第一季的季節性下降約為 5%。

Tristan Gerra, Baird.

特里斯坦·杰拉，貝爾德。

Hi. Good afternoon. You touched on pricing a little bit. In automotive, which is one of the end markets that you and clearly, many companies have highlighted as being weak. Looking at pricing renegotiation for next year, first, I wanted to get a sense of how you see those discussions going and then I know that you've mentioned in the past how new design wins in automotive are basically at a 50% gross margin threshold or higher.

你好。午安.您稍微談到了定價問題。在汽車領域，這是您和顯然許多公司都強調疲軟的終端市場之一。看看明年的定價重新談判，首先，我想了解您如何看待這些討論的進展，然後我知道您過去曾提到過，汽車領域的新設計獲勝基本上是在50% 的毛利率閾值下進行的或更高。

But at the same time, you do have underutilization. So, what is the balance between where you might figure well, maybe I take slightly less than 50% gross margin, but then I can really feel capacity increase utilization rates and it's a net-net positive for gross margin. If you could give us color on that and whether you expect pricing decline to accelerate next year or not?

但同時，你確實沒有充分利用。那麼，您可能會想到，也許我會採取略低於50% 的毛利率，但我確實能感覺到產能利用率的提高，這對毛利率來說是一個淨淨正數之間的平衡是什麼。您能否提供我們一些具體資訊以及您是否預計明年價格下降會加速？

Hi, Tristan. This is Emily. So, I think all in all, auto market customers negotiation, really customer by customer. Some may be doing a quarterly negotiations, some may be semi-yearly, majority is probably a yearly negotiation.

嗨，特里斯坦。這是艾米麗。所以，我認為總而言之，汽車市場客戶的談判，確實是因客戶而異。有些可能是每季進行一次談判，有些可能是半年一次，大多數可能是每年一次。

I would say, all in all, I will view that as pretty stable. We did actually have a built in somewhere between 1% to 2% price decrease per quarter into our model. And I think you have a really good question. So how do we balance the underloading or underutilization versus more than 50% margin.

我想說，總而言之，我認為這是相當穩定的。實際上，我們的模型中確實內建了每季 1% 到 2% 的價格下降幅度。我認為你的問題非常好。那我們該如何平衡負載不足或利用率不足與超過 50% 的利潤。

I think what we look at each account or I look at each account, I don't really look at line by line. What we really look at is overall account margin, right? And also, the overall account potential to grow in the future.

我認為我們查看每個帳戶或我查看每個帳戶，我並沒有真正逐行查看。我們真正關注的是整體帳戶保證金，對吧？而且，整體帳戶未來還有成長的潛力。

There are times that we’ll take low margin business if there's good justification or strategic benefit down the road, right? So, we don't really use the 50% or 55% as a bar, but we look at the overall engagement, the overall relationship.

有時，如果將來有充分的理由或策略利益，我們會採取低利潤業務，對吧？所以，我們並沒有真正使用 50% 或 55% 作為標準，而是專注於整體參與、整體關係。

I think one thing I've been emphasizing before is actually the partnership with the customers, the face to face, the long-term relationship. So that's how we view it. Of course, as part of the negotiation, the overall underloading cost, by which side will be part of the consideration as well.

我認為我之前一直強調的一件事實際上是與客戶的合作關係，面對面的長期關係。這就是我們的看法。當然，作為談判的一部分，整體的欠載成本，由哪一方也會作為考慮的一部分。

So there are cases if we can help minimize the overall loading -- underloading pressure by doing a little bit some other areas, we definitely would do it. But at the same time, we also don't want to mess up the whole market as well, right?

因此，在某些情況下，如果我們可以透過在其他領域做一些事情來幫助最大限度地減少整體負載——負載不足的壓力，我們肯定會這樣做。但同時，我們也不想攪亂整個市場，對嗎？

I'm sorry, Tristan, this is Gary. I would like to put some more color on that too. So I think the key is still in the automotive, we really want to introduce new products into automotive as Emily mentioned about in her speech.

對不起，特里斯坦，這是加里。我也想為此添加更多色彩。所以我認為關鍵還是在汽車領域，我們真的很想將新產品引入汽車領域，就像艾米麗在演講中提到的那樣。

And the key thing is how can we make sure we do the design-in, design win continuously and also doing the content extension -- expansion and at this moment, we do see the automotive revenue increased 1% quarter-to-quarter and we'll continue going forward in this direction.

關鍵是我們如何確保我們不斷進行設計導入、設計獲勝，並進行內容擴展——擴展，目前，我們確實看到汽車收入環比增長了 1%，我們會繼續朝著這個方向前進。

Okay. That's very useful. And then as a follow-up, if you could expand a little bit on, obviously, the success story regarding the PCI-E packet switches and how material is that into next year? Is that contributing meaningfully versus typical seasonality in Q1 as you're ramping? And what type of market share are you expecting in some of the leading platform where you're ramping?

好的。這非常有用。作為後續行動，顯然，您是否可以稍微擴展一下有關 PCI-E 資料包交換器的成功故事，以及這對明年有何影響？隨著您的擴張，這與第一季的典型季節性相比是否有意義的貢獻？您預計在您正在拓展的一些領先平台中獲得什麼類型的市場份額？

Yeah. So, I think we share more information last quarter basically with some of the GPUs or the AI servers, there's a requirement for additional PCI Express input or output ports. So, we actually have a very unique product that would really fulfill this requirement. So, we are very well positioned.

是的。因此，我認為上個季度我們基本上與一些 GPU 或 AI 伺服器共享了更多信息，因此需要額外的 PCI Express 輸入或輸出端口。所以，我們實際上有一個非常獨特的產品，可以真正滿足這項要求。所以，我們處於非常有利的位置。

So as everyone knows, there's some delayed chipset launches and stuff like that. So I would say this is still at the very early stage of the deployment. And we still have a number of customers that are currently still working at the design stage.

眾所周知，晶片組的發布有所延遲，諸如此類。所以我想說這仍處於部署的早期階段。我們還有一些客戶目前仍處於設計階段。

So we expect that can definitely help us continue to drive some of the momentum. And then, I also point out this quarter is not just at AI server or the data center. There's a lot of related AI subsystems, whether it's a DC fan, whether it's power supply, DC-DC brake, et cetera. So, we are continuing to leverage different things, expanding even to the subsystems.

因此，我們預計這肯定可以幫助我們繼續推動一些勢頭。然後，我還指出這個季度不僅僅是人工智慧伺服器或資料中心。相關的AI子系統很多，無論是直流風扇，無論是電源供應器、DC-DC煞車等等。因此，我們正在繼續利用不同的東西，甚至擴展到子系統。

So that's the reason why it can be quite important for Diodes to continue to focus in this direction and continue to drive the total solution sales approach and continue to gain the momentum next year. So like I said, it's just the beginning of the expansion and the momentum definitely would continue or be much stronger into 2025.

因此，這就是為什麼 Diodes 繼續專注於這個方向並繼續推動整體解決方案銷售方式並在明年繼續獲得動力是非常重要的。正如我所說，這只是擴張的開始，這種勢頭肯定會持續到 2025 年，或者會更加強勁。

There are no further questions at this time. I will now turn the call back over to Gary Yu for closing remarks.

目前沒有其他問題。現在我將把電話轉回加里餘 (Gary Yu) 致閉幕詞。

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.

感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。

Ladies and gentlemen, that concludes today's call. Thank you all for joining. You may now disconnect.

女士們、先生們，今天的電話會議到此結束。感謝大家的加入。您現在可以斷開連線。