Diodes Inc (DIOD) 2024 Q4 法說會逐字稿

Good afternoon, and welcome to Diodes Inc. fourth quarter and Fiscal 2024 financial results conference call. (Operator Instructions). As a reminder, this conference call is being recorded today, Tuesday, February 11, 2025.

下午好，歡迎參加 Diodes Inc. 第四季和 2024 財年財務業績電話會議。（操作員指令）。提醒一下，本次電話會議於今天（2025 年 2 月 11 日，星期二）錄製。

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

現在，我想將電話轉給 Shelton Group 投資者關係部的 Leanne Sievers。Leanne，請繼續。

Good afternoon, and welcome to Diodes fourth quarter and fiscal 2024 financial results conference call. I'm Leanne Sievers, President of Shelton Group, Diode's 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 第四季和 2024 財年財務業績電話會議。我是 Diode 投資者關係公司 Shelton Group 總裁 Leanne Sievers。今天與我們一起參加的有 Diodes 總裁 Gary Yu、財務長 Brett Whitmire；全球銷售與行銷資深副總裁 Emily Yang；以及投資者關係總監 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-K for its fiscal year ended December 31, 2024. 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.

我想提醒我們的聽眾，今天宣布的結果是初步的，因為它取決於公司最終完成其結案程序以及公司獨立註冊會計師事務所的例行季度審查。因此，這些結果未經審計，並且在本公司提交截至 2024 年 12 月 31 日的財政年度的 10-K 表之前可能會進行修訂。此外，管理層準備好的評論包含前瞻性陳述，這些陳述受風險和不確定性的影響，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 and in the company's filings with the Securities and Exchange Commission, including Form 10-K and 10-Q.

因此，該公司要求受到 1995 年私人證券訴訟改革法案中前瞻性聲明安全港的保護。實際結果可能與今天討論的結果不同，因此，我們請您參閱有關風險和不確定性的更詳細討論以及公司向美國證券交易委員會提交的文件，包括 10-K 表和 10-Q 表。

In addition, any projections as to the company's future performance represent management's estimates as of today, February 11, 2025. 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 2025 年 2 月 11 日的估計。Diodes 不承擔將來更新這些預測的義務，因為市場條件可能會或可能不會改變，除非適用法律要求。

Additionally, the company's press release and management statements during this conference call will include discussions of certain measures and financial information in GAAP and non-GAAP terms. Included in the company's press release are definitions and reconciliations of GAAP to non-GAAP items, which provide additional details. Also, throughout the company's press release and management statements during the conference call, we refer to net income attributable to common stockholders as GAAP net income.

此外，本次電話會議中的公司新聞稿和管理層聲明將包括對 GAAP 和非 GAAP 條款下的某些指標和財務資訊的討論。該公司的新聞稿中包括 GAAP 與非 GAAP 項目的定義和對照表，提供了更多詳細資訊。此外，在整個公司新聞稿和電話會議期間的管理層聲明中，我們將歸屬於普通股股東的淨收入稱為 GAAP 淨收入。

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.

對於那些此時無法收聽整個電話會議的用戶，Diodes 網站 www.diodes.com 的投資者關係部分將透過網路廣播提供 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. Our above seasonal revenue results in the fourth quarter reflect the improving momentum we have seen over the past few quarters as the markets in Asia gradually improved, especially in China and the Southeast Asia region. We achieved 5% growth over the fourth quarter of 2023, which marks a return to year-over-year growth following the multi-year market slowdown. Even though the overall global demand environment remains challenging, especially in Europe and North America, we were able to maintain our automotive and industrial mix percentage at 42% of total product revenue. which is a testament to the progress we have made on our new product and content expansion initiatives.

歡迎大家，感謝您參加今天的電話會議。我們第四季高於季節性的營收結果反映了我們在過去幾季看到的改善勢頭，因為亞洲市場逐漸好轉，尤其是中國和東南亞。我們在 2023 年第四季實現了 5% 的成長，這標誌著在多年市場放緩之後恢復同比增長。儘管全球整體需求環境仍充滿挑戰，尤其是在歐洲和北美，我們仍能將汽車和工業組合百分比維持在總產品收入的 42%。這證明了我們在新產品和內容擴展計劃方面所取得的進展。

Diodes entered a new year having strong POS in Asia for 2024, improved level of channel inventory and a solid balance sheet, combined with a committed focus on expanding growth in our target market, especially the automotive and industrial markets and capitalizing on new opportunities in AI-related applications. Based on current data available, we expect 2025 to be a stronger year for Diodes than 2024.

Diodes 進入新的一年，2024 年在亞洲擁有強勁的 POS、改善的通路庫存水準和穩健的資產負債表，同時致力於擴大目標市場（尤其是汽車和工業市場）的成長，並利用人工智慧相關應用的新機會。根據目前可用的數據，我們預計 2025 年二極體的表現將比 2024 年更加強勁。

In addition to our past efforts to lower manufacturing costs and further develop our process technology and capabilities, we are qualifying and are running more products in our internal facilities to minimize near-term underloading costs until demand improves. Our focus remains on prioritizing investments in the automotive and industrial markets, with our analog and power discreet products, to further improve the quality and the mix of our portfolio. With our revenue contribution from auto and industrial remaining consistently above our target model, we are well positioned for growth and margin expansion as market recovery broadens across our end markets in 2025 and beyond.

除了我們過去為降低製造成本和進一步開發製程技術和能力所做的努力之外，我們還在內部設施中進行認證並運行更多產品，以最大限度地減少短期欠載成本，直到需求改善為止。我們仍將重點關注汽車和工業市場，利用我們的類比和電源分離產品，進一步提高產品組合的品質和結構。由於來自汽車和工業領域的收入貢獻始終高於我們的目標模式，隨著 2025 年及以後終端市場的市場復甦擴大，我們已準備好實現成長和利潤率擴大。

With that, let me now turn the call over to Brett to discuss our fourth quarter and fiscal 2024 financial results as well as our first quarter 2025 guidance in more detail.

現在，我將把電話轉給 Brett，更詳細地討論我們的第四季和 2024 財年財務業績以及 2025 年第一季指引。

Thanks, Gary, and good afternoon, everyone. Revenue for the fourth quarter of 2024 was $339.3 million, compared to $350.1 million in the third quarter 2024, and $322.7 million in the fourth quarter of 2023. Full year 2024 revenue was $1.3 billion, compared to $1.7 billion in 2023.

謝謝，加里，大家下午好。2024 年第四季營收為 3.393 億美元，而 2024 年第三季為 3.501 億美元，2023 年第四季為 3.227 億美元。2024 年全年營收為 13 億美元，而 2023 年為 17 億美元。

Gross profit for the fourth quarter was $110.9 million or 32.7% of revenue, compared to $118 million or 33.7% of revenue in the prior quarter, and $112.5 million or 34.9% of revenue in the prior year quarter. For the full year, GAAP gross profit was $435.9 million or 33.2% of revenue.

第四季毛利為 1.109 億美元，佔營收的 32.7%，而上一季毛利為 1.18 億美元，佔營收的 33.7%，去年同期毛利為 1.125 億美元，佔營收的 34.9%。全年 GAAP 毛利為 4.359 億美元，佔營收的 33.2%。

GAAP operating expenses for the fourth quarter were $99 million or 29.2% of revenue, and on a non-GAAP basis, were $95.5 million or 28.1% of revenue, which excludes $5 million amortization of acquisition-related intangible asset expenses, $0.6 million restructuring charge, $0.3 million in acquisition-related costs, and $2.3 million for insurance recovery for a manufacturing facility. This compares to GAAP operating expenses in the prior quarter of $96.1 million or 27.5% of revenue, and in the fourth quarter 2023 of $91.8 million or 28.4% of revenue. Non-GAAP operating expenses in the prior quarter were $91.7 million or 26.2% of revenue.

第四季 GAAP 營業費用為 9,900 萬美元，佔收入的 29.2%；非 GAAP 營業費用為 9,550 萬美元，佔收入的 28.1%，其中不包括 500 萬美元的收購相關無形資產攤銷費用、60 萬美元的重組費用、30 萬美元的收購相關費用以及 230 萬美元的工廠追償費用。相較之下，上一季的 GAAP 營業費用為 9,610 萬美元，佔營收的 27.5%，2023 年第四季的 GAAP 營業費用為 9,180 萬美元，佔營收的 28.4%。上一季非公認會計準則營業費用為 9,170 萬美元，佔營收的 26.2%。

Total other income amounted to approximately $0.4 million for the quarter, consisting of $4.9 million of interest income, $1.2 million of other income, $3.7 million of foreign currency loss, $1.6 million in unrealized losses from investments and $0.5 million in interest expense.

本季其他總收入約為 40 萬美元，其中包括 490 萬美元的利息收入、120 萬美元的其他收入、370 萬美元的外幣損失、160 萬美元的投資未實現損失和 50 萬美元的利息支出。

Income before taxes and noncontrolling interest in the fourth quarter of 2024 was $12.3 million, compared to $18.8 million in the previous quarter, and $27.9 million in the prior year quarter.

2024 年第四季稅前及非控股權益前利潤為 1,230 萬美元，而上一季為 1,880 萬美元，去年同期為 2,790 萬美元。

Turning to income taxes. Our effective income tax rate for the fourth quarter was approximately 16.6%. For the full year 2024, the tax rate was approximately 18.9%.

談到所得稅。我們第四季的有效所得稅率約為16.6%。2024年全年稅率約為18.9%。

The GAAP net income for the fourth quarter was $8.2 million or $0.18 per diluted share, compared to $13.7 million or $0.30 per diluted share last quarter, and $25.3 million or $0.55 per diluted share in the prior year quarter. Full year GAAP net income was $44 million or $0.95 per diluted share, compared to $227.2 million or $4.91 per diluted share in 2023. The share count used to compute GAAP diluted EPS was 46.4 million shares for both fourth quarter 2024 and the full year.

第四季 GAAP 淨收入為 820 萬美元，即每股攤薄收益 0.18 美元，而上季為 1,370 萬美元，即每股攤薄收益 0.30 美元，去年同期為 2,530 萬美元，即每股攤薄收益 0.55 美元。全年 GAAP 淨收入為 4,400 萬美元或每股攤薄收入 0.95 美元，而 2023 年為 2.272 億美元或每股攤薄收入 4.91 美元。用於計算 2024 年第四季和全年 GAAP 稀釋每股盈餘的股票數量均為 4,640 萬股。

Non-GAAP adjusted net income in the fourth quarter was $12.5 million or $0.27 per diluted share, which excluded, net of tax, $4.1 million for amortization of acquisition-related intangible assets and $1.3 million non-cash mark-to-market investment value adjustment, $0.5 million restructuring charges, $0.2 million of acquisition-related costs and $1.9 million of insurance recovery. This compares to $20.1 million or $0.43 per diluted share in the prior quarter, and $23.4 million or $0.51 per diluted share in the fourth quarter of 2023. For the full year, non-GAAP adjusted net income was $61 million or $1.31 per diluted share as compared to $222.8 million or $4.81 per diluted share in 2023.

第四季非公認會計準則調整後淨收入為 1,250 萬美元，即每股攤薄收益 0.27 美元，其中扣除稅後淨收入包括 410 萬美元的收購相關無形資產攤銷費用、130 萬美元的非現金按市價投資價值調整、50 萬美元的重組費用、20 萬美元的收購相關成本以及 190 萬美元的保險費用。相較之下，上一季的利潤為 2,010 萬美元，即每股攤薄收益 0.43 美元，2023 年第四季的利潤為 2,340 萬美元，即每股攤薄收益 0.51 美元。全年非 GAAP 調整後淨收入為 6,100 萬美元，即每股攤薄收入 1.31 美元，而 2023 年為 2.228 億美元，即每股攤薄收入 4.81 美元。

Excluding non-cash share-based compensation expense of $5.3 million for the fourth quarter, net of tax, both GAAP earnings per share and non-GAAP adjusted EPS would have increased by $0.11 per diluted share. For the full year, excluding GAAP and non-GAAP non-cash share-based compensation expense of $18 million and $17.4 million, respectively, net of tax, GAAP and non-GAAP diluted earnings per share would have improved by $0.40 and $0.39, respectively.

除去第四季 530 萬美元的非現金股權激勵費用（稅後），GAAP 每股盈餘和非 GAAP 調整後每股盈餘增加 0.11 美元。就全年而言，扣除 GAAP 和非 GAAP 非現金股權激勵費用分別為 1,800 萬美元和 1,740 萬美元後，稅後 GAAP 和非 GAAP 攤薄每股收益分別增加 0.40 美元和 0.39 美元。

EBITDA for the fourth quarter was $40.7 million or 12% of revenue, compared to $46.9 million or 13.4% of revenue in the prior quarter, and $58.4 million or 18.1% of revenue in the fourth quarter 2023. For the full year, EBITDA was $177.1 million or 13.5% of revenue, compared to $404.2 million or 24.3% of revenue in 2023.

第四季的 EBITDA 為 4,070 萬美元，佔營收的 12%，而上一季為 4,690 萬美元，佔營收的 13.4%，2023 年第四季為 5,840 萬美元，佔營收的 18.1%。全年 EBITDA 為 1.771 億美元，佔營收的 13.5%，而 2023 年為 4.042 億美元，佔營收的 24.3%。

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 淨收入與非 GAAP 調整後淨收入以及 GAAP 淨收入與 EBITDA 的對帳表，以提供更多詳細資訊。

Cash flow provided by operations was $81.8 million for the fourth quarter and $119.4 million for the full year. Cash flow was $62.1 million, which included $19.7 million for capital expenditures, and for the full year, free cash flow was $46.4 million including $73 million for CapEx. Net cash flow was a negative $2.4 million, which includes the net paydown of $3.8 million of total debt, and for the full year, net cash flow was a negative $3.8 million which includes the net paydown of $7.6 million of total debt as well as total net consideration of $52.6 million for the acquisition of Fortemedia, a global company, which operates in Asia, that develops high-quality solutions and semiconductor products to enhance human-to-human and human-to-machine voice communications. Diodes acquired Fortemedia to expand our product portfolio and enhance the company's footprint in advanced voice processing technologies, primarily targeted at automotive and compute markets.

第四季經營活動產生的現金流為 8,180 萬美元，全年經營活動產生的現金流為 1.194 億美元。現金流為 6,210 萬美元，其中包括 1,970 萬美元的資本支出，全年自由現金流為 4,640 萬美元，其中包括 7,300 萬美元的資本支出。淨現金流為負 240 萬美元，其中包括淨償還 380 萬美元的總債務；全年淨現金流為負 380 萬美元，其中包括淨償還 760 萬美元的總債務以及收購 Fortemedia 的總淨對價 5,260 萬美元。Diodes 收購 Fortemedia 是為了擴大我們的產品組合，並增強公司在先進語音處理技術領域的影響力，主要針對汽車和運算市場。

Turning to our balance sheet, at the end of fourth quarter, cash, cash equivalents, restricted cash plus short-term investments totaled approximately $322 million. Working capital was approximately $849 million in total debt, including long term and short term, was approximately $52 million.

回顧我們的資產負債表，截至第四季末，現金、現金等價物、受限現金加上短期投資總計約 3.22 億美元。營運資金約 8.49 億美元，總債務（包括長期和短期債務）約 5,200 萬美元。

In terms of inventory at the end of the fourth quarter, total inventory days were approximately 193 as compared to 187 last quarter. Finished goods inventory days were 82 compared to 79 last quarter. Total inventory dollars decreased $7.1 million from the prior quarter to $475 million. Total inventory in the quarter consisted of an $18.3 million decrease in raw materials, a $9.7 million increase in work in process and a $1.5 million increase in finished goods.

就第四季末的庫存而言，總庫存天數約為193天，而上季為187天。成品庫存天數為 82 天，而上一季為 79 天。總庫存金額較上一季減少 710 萬美元至 4.75 億美元。本季總庫存包括原料減少 1830 萬美元、在製品增加 970 萬美元以及成品增加 150 萬美元。

Capital expenditures on a cash basis were $19.7 million for the fourth quarter or 5.8% of revenue, and $73 million or 5.6% of revenue for the full year, which were both at the low end of our targeted range of 5% to 9% of revenue.

第四季現金資本支出為 1,970 萬美元，佔收入的 5.8%，全年資本支出為 7,300 萬美元，佔收入的 5.6%，均處於我們目標範圍 5% 至 9% 的低端。

Now turning to our outlook. For the first quarter of 2025, we expect revenue to be approximately $323 million, plus or minus 3%, and representing a 4.8% sequential decrease at the midpoint due to Chinese New Year holiday, but slightly better than typical seasonality.

現在來談談我們的展望。對於 2025 年第一季度，我們預計收入約為 3.23 億美元，上下浮動 3%，由於農曆新年假期，中位數環比下降 4.8%，但略好於典型季節性。

Importantly, the midpoint of guidance represents 7% year-over-year growth and extends our momentum in support of our expectation for growth in 2025. GAAP gross margin is expected to be 32.5% plus or minus 1%. Non-GAAP operating expenses, which are GAAP operating expenses adjusted for amortization of acquisition-related intangible assets, are expected to be approximately 30% of revenue, plus or minus 1%. We expect net interest income to be approximately $1.5 million.

重要的是，指導中點代表 7% 的同比增長，並延續了我們的勢頭，以支持我們對 2025 年增長的預期。預估 GAAP 毛利率為 32.5%（正負 1%）。非 GAAP 營業費用，即根據收購相關無形資產攤銷進行調整的 GAAP 營業費用，預計約為收入的 30%，上下浮動 1%。我們預計淨利息收入約為 150 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 first quarter are anticipated to be approximately 46.7 million. Not included in these non-GAAP estimates is amortization of $5.8 million after tax for previous acquisitions.

我們的所得稅率預計為 18.5%，正負 3%，用於計算第一季每股收益的股票預計約為 4,670 萬股。這些非 GAAP 估算中未包括先前收購的 580 萬美元稅後攤銷費用。

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

說了這麼多，現在我將電話轉給 Emily Yang。

Thank you, Brett, and good afternoon. Revenue in the fourth quarter was above the midpoint of our guidance. and slightly better than typical seasonality. Our global POS decreased in the quarter, but the good news is our channel inventory was lower both in terms of dollars and weeks. I will also note, POS in Asia for 2024 was strong, especially the second half of the year where we saw double-digit growth over the same period in 2023.

謝謝你，布雷特，下午好。第四季的營收高於我們預期的中位數。並且比典型的季節性略好。本季我們的全球 POS 有所下降，但好消息是我們的通路庫存無論是以美元還是周數計算都較低。我還要指出的是，2024 年亞洲的 POS 表現強勁，尤其是下半年，與 2023 年同期相比實現了兩位數的成長。

Looking at the global sales in the fourth quarter. Asia represented 80% of revenue; Europe, 12%; and North America, 8%.

回顧第四季的全球銷售情況。亞洲佔收入的80%；歐洲，12%；北美為 8%。

In terms of our end markets, industrial was 23% of Diodes product revenue, Automotive, 19%; Compute, 25%; Consumer, 18%; and Communications 15% of product revenue. Our automotive industrial revenue combined totaled 42% of the product revenue which is the same as last quarter. Maintaining our product mix above our target model reflects our ongoing content expansion and design win initiatives, even though both of these markets continue to undergo inventory and demand adjustments.

就我們的終端市場而言，工業佔 Diodes 產品收入的 23%，汽車佔 19%；計算，25%；消費者，18%；以及通訊業務佔產品收入的15%。我們的汽車產業收入合計佔產品收入的42％，與上一季相同。儘管這兩個市場仍在進行庫存和需求調整，但將我們的產品組合維持在目標模型之上反映了我們正在進行的內容擴展和設計獲勝舉措。

A key component of Diodes ‘successful increase of content at new and existing customers has been our focus on technology and product development over the past several years. In 2024 alone, we introduced 755 new part numbers with 330 of these specifically for automotive market, where we have increased our addressable content per car over 30% this past year from approximately $160 to $213.

Diodes 成功增加新舊客戶滿意度的關鍵因素是過去幾年我們一直專注於技術和產品開發。僅在 2024 年，我們就推出了 755 個新零件編號，其中 330 個專門用於汽車市場，過去一年中，我們每輛汽車的可尋址內容增加了 30% 以上，從約 160 美元增加到 213 美元。

Now let me review the end market in greater details. Starting with the automotive market. We maintained the product revenue at 19% and even though the inventory rebalancing continues throughout the quarter. We expect inventory adjustments and slower demand to persist into the first quarter. Our focus continues to be on content expansion and market share gain to position Diodes for the growth as the auto market recovers.

現在讓我更詳細地回顧一下終端市場。從汽車市場開始。儘管庫存重新平衡在整個季度持續進行，但我們仍將產品收入維持在 19%。我們預計庫存調整和需求放緩將持續到第一季。我們將繼續專注於內容擴展和市場份額成長，以使二極體在汽車市場復甦時實現成長。

As I mentioned earlier, Diodes introduced a high number of new automotive compliant- products during the year. These products are targeted at our key focus areas of connected driving; comfort, style, safety; and electrification applications.

正如我之前提到的，Diodes 今年推出了大量符合汽車標準的新產品。這些產品針對的是我們的重點領域：連網駕駛；舒適、時尚、安全；和電氣化應用。

In terms of product adoption and demand creation, we're seeing strong momentum for our small-lane count PCI Express packet switches, USB Type-C Re-Drivers and active cross muxes for the real seat entertainment and smart copy applications. Our LDO product family received solid demand for ADAS, infotainment and wireless charging applications and our SBR products are seeing design wins in auto display applications.

在產品採用和需求創造方面，我們看到用於真實座位娛樂和智慧複製應用的小通道數 PCI Express 分組交換機、USB Type-C 轉接驅動器和主動交叉多路復用器的發展勢頭強勁。我們的 LDO 產品系列在 ADAS、資訊娛樂和無線充電應用方面需求強勁，而我們的 SBR 產品在汽車顯示器應用方面的設計也大獲成功。

We also experienced strong growth in the quarter from our switching power DC/DC products for connected driving applications. Additionally, our power discrete product, including MOS power, TVS, SBR and bipolar junction transistors are seeing demand growth across multiple auto applications. We have also been ramping up new designs wins for our high-voltage Hall switches, being used in the tail-gate lift door harnesses, and electric steering control across multiple customers around the world.

本季度，我們用於連網駕駛應用的開關電源 DC/DC 產品也實現了強勁成長。此外，我們的功率分立產品（包括 MOS 功率、TVS、SBR 和雙極接面電晶體）在多種汽車應用領域的需求正在成長。我們也不斷增加高壓霍爾開關新設計的研發力度，這些開關已被全球多個客戶的後擋板升降門線束和電動轉向控制所採用。

Also in automotive, our LED driver business continued to see strong demand in various lighting applications, while our buck LED drivers and multi-mode LED driver controllers gained traction in applications such as front high/low beams as well as rear and exterior lighting.

此外，在汽車領域，我們的 LED 驅動器業務在各種照明應用中繼續保持強勁需求，而我們的降壓 LED 驅動器和多模式 LED 驅動器控制器在前遠光/近光燈以及後部和外部照明等應用方面獲得了關注。

In the industrial market, the inventory correction continues similar to automotive end market. We expect this may last into the second quarter.

在工業市場，庫存調整持續進行，與汽車終端市場類似。我們預計這種情況可能會持續到第二季​​。

Despite the demand softness, we continued to make progress on our design-in/design-win initiatives. Our high-voltage Hall switches are seeing design wins for window openers, DC fans and motor applications, while our photo couplers and LDOs are seeing traction in e-meter, industrial equipment, motor control fans and power tools. Additionally, our protection devices are being designed into battery backup units as well as programmable logic control units. Our bridge rectifiers had multiple design wins in the switch-mode power supply for server power. We also saw several new Silicon Carbide SBD design-in activities in rail power supply and electric motors as well as Tier 1 energy storage applications.

儘管需求疲軟，但我們在設計/設計獲勝計劃方面仍繼續取得進展。我們的高壓霍爾開關在窗戶開啟器、直流風扇和馬達應用的設計中獲得了成功，而我們的光耦合器和 LDO 則在電子計、工業設備、馬達控制風扇和電動工具中得到了廣泛的應用。此外，我們的保護裝置也被設計到電池備用單元以及可程式邏輯控制單元中。我們的橋式整流器在伺服器電源的開關電源設計中多次獲得成功。我們還看到了鐵路電源和電動馬達以及一級儲能應用中的幾種新型碳化矽 SBD 設計活動。

In the computing market, we continue to see strong growth momentum the PCI Express packet switches, USB signal conditioners and ultra low jitter crystal oscillators in AI server and data center applications, including 800G and 1.6T switches and optical modules. Our high-speed serial interface, logic crystal oscillators and PCI Express clocks are being adopted in Nic cards and GPU cards for the system reference clocks. Our addressable content in the AI server today is approximately $90 per box, which compared to $53 per box last year for traditional servers.

在計算市場，我們繼續看到AI伺服器和資料中心應用中的PCI Express分組交換器、USB訊號調節器和超低抖動晶體振盪器的強勁成長勢頭，包括800G和1.6T交換器和光模組。我們的高速串列介面、邏輯晶體振盪器和 PCI Express 時脈正在被 Nic 卡和 GPU 卡採用為系統參考時脈。我們目前在 AI 伺服器中可尋址的內容價格約為每盒 90 美元，而去年傳統伺服器的價格為每盒 53 美元。

Also in the computing market, we received solid demand for our LDOs across various applications as well as our ideal diode controllers, MOSFETs and compact power switches for input power ORings and power path sequencing control applications. Additionally, our bus switch solutions for enterprise SSD and next-generation portable gaming consoles are being well received as they have helped SSD customers double the supported capacity without redesign of their storage controllers and also protect again software piracy for gaming console customers.

此外，在運算市場，我們的 LDO 在各種應用領域有著強勁的需求，理想二極體控制器、MOSFET 和用於輸入電源 ORing 和電源路徑排序控制應用的緊湊型電源開關也是如此。此外，我們針對企業級SSD和下一代便攜式遊戲機的總線交換解決方案也廣受好評，因為它們幫助SSD客戶在無需重新設計儲存控制器的情況下將支援容量翻倍，同時也為遊戲機客戶再次保護軟體盜版。

Lastly, high-bandwidth cameras in the notebook are driving demand for our MIPI D-PHY ReDrivers, and we continue to achieve momentum for our Schottky and protection products in notebook and docking station applications.

最後，筆記型電腦中的高頻寬相機正在推動對我們的 MIPI D-PHY ReDrivers 的需求，並且我們繼續在筆記型電腦和擴充座應用中為我們的肖特基和保護產品保持強勁發展勢頭。

In the communication market, our eUSB2 repeaters have become the standard interface for CPUs and SoC processors in the mobile communication where our 1- and 2-channel USB repeaters are gaining traction. Diodes LDOs are also seeing solid demand, and our production devices are winning new designs in smartphones.

在通訊市場，我們的 eUSB2 中繼器已成為行動通訊中 CPU 和 SoC 處理器的標準接口，其中我們的 1 通道和 2 通道 USB 中繼器正在獲得關注。二極體 LDO 的需求也十分強勁，我們的生產設備正在贏得智慧型手機的新設計。

Also in the communication market, our bi-polar junction transistors, Schottky and SBR products are seeing new design-ins for 5G CPE and 5G modules. We also saw strong momentum for USB power delivery and AC-DC PWM controller products in smartphone charging applications.

同樣在通訊市場，我們的雙極接面電晶體、蕭特基和 SBR 產品正在為 5G CPE 和 5G 模組提供新的設計。我們也看到智慧型手機充電應用中 USB 電源傳輸和 AC-DC PWM 控制器產品的強勁發展勢頭。

Lastly, in the consumer market, our SBR and SBD products in chip-scale packages are securing new designs in power delivery charger and battery pack applications. Additionally, our bridge rectifiers are being designed into gaming applications, while our high-voltage buck converters are being adopted in the smart home IoT applications. We also have new design wins for bi-polar junction transistor products in personal care devices.

最後，在消費性市場，我們的晶片級封裝的 SBR 和 SBD 產品正在為電力傳輸充電器和電池組應用提供新的設計。此外，我們的橋式整流器正在被設計用於遊戲應用，而我們的高壓降壓轉換器正在被智慧家庭物聯網應用所採用。我們在個人護理設備領域的雙極接面電晶體產品設計方面也取得了新進展。

In summary, we're pleased to achieve the first quarter of year-over-year growth in the fourth quarter following the multi-year market slowdown. Although we have not yet seen a broad market recovery, especially across the automotive and industrial markets, we continue to focus on demand creation and executing on our new product initiatives to drive increasing content opportunities as the global markets recover.

總而言之，我們很高興在多年市場放緩之後，在第四季度實現了第一季的同比增長。儘管我們尚未看到廣泛的市場復甦，尤其是汽車和工業市場，但隨著全球市場的復甦，我們將繼續專注於創造需求並執行我們的新產品計劃，以推動內容機會的增加。

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

現在，我們開始回答問題。操作員？

(Operator Instructions)

（操作員指令）

David Williams, Benchmark.

大衛威廉斯，基準。

Hey, good afternoon. Thanks for taking the question and congratulations on the returning growth here.

嘿，下午好。感謝您回答這個問題，並祝賀這裡的恢復成長。

Thank you, David.

謝謝你，大衛。

Emily, maybe you could speak a little bit to the seasonality that you're talking to and how that's affecting you in China, especially with the Chinese New Year and maybe as it relates to automotive and industrial, kind of what you're seeing there? Are you expecting that to be down maybe further than some of the other segments? Or just any color around the demand trends in China would be helpful, I think.

艾米麗，也許您可以談論季節性，以及它對您在中國的影響，特別是在農曆新年期間，也許與汽車和工業有關，您在那裡看到了什麼？您是否預期該數字下降的幅度會比其他部分更低？或者我認為，任何有關中國需求趨勢的顏色都會有幫助。

Yeah. So first of all, I think Chinese New Year, I think, is pretty much within our expectation. We didn't see anything abnormal. I think there are some customers with extended shutdowns, but not all the customers. I think overall, it's actually within our expectation.

是的。首先，我認為農曆新年完全符合我們的預期。我們沒有發現任何異常。我認為有些客戶的停工時間延長了，但不是所有客戶。我認為總體而言，這實際上在我們的預期之內。

I think we actually included the new year -- Chinese New Year return of employees and overall market, everything together, we actually guided 4.8% down for the Q1, which is actually slightly better than our usual seasonality and Q1 never was a strong quarter for us because of Chinese New Year impact, I would say, all in all, is actually within our expectation.

我認為我們實際上把新年——農曆新年員工返工和整體市場，所有因素加在一起——都考慮進去了，我們實際上預計第一季度會下降 4.8%，這實際上比我們通常的季節性要好一些，而且由於農曆新年的影響，第一季度對我們來說從來都不是一個強勁的季度，我想說，總的來說，這實際上在我們的預期之內。

Great. I certainly appreciate that. And then maybe, Brett, on the gross margin, the sequential improvement there feels a little stronger than I would have anticipated. What are you kind of seeing on the gross margin, I guess, just given the nice bump sequentially there?

偉大的。我對此深表感激。那麼也許，布雷特，就毛利率而言，其連續改善感覺比我預期的要強勁一些。我想，考慮到毛利率持續大幅成長，您對毛利率有什麼看法？

Yeah. So, I think from the gross margin point of view, and usually revenue goes hand-in-hand with the gross margin. So, I think what we really try to do is really more on the product initiative improvement overall. We continue to focus on introducing new products. As an example, I think I just talked about it. We released more than 700 new part numbers in 2024. And out of that, more than 330 is actually automotive part. So you can actually see the commitment and driving of the new product and new technology continued to expand our available content market expansion overall. So that will continue to be the focus, right?

是的。因此，我認為從毛利率的角度來看，通常收入與毛利率密切相關。所以，我認為我們真正嘗試做的是更多地從整體上改進產品主動性。我們繼續專注於推出新產品。舉個例子，我想我剛才已經談過了。我們在 2024 年發布了 700 多個新零件編號。其中 330 多個實際上是汽車零件。因此，您實際上可以看到對新產品和新技術的承諾和驅動力不斷擴大我們可用的內容市場擴張。所以這將繼續成為重點，對嗎？

So a couple of things that really drive the margin improvement. So one is on the product improvement, product mix improvement initiative. The other side is actually on the underloading situation. So like Gary mentioned, right, we continue to actually minimize the impact, continue to port additional products into our own internal fab as the alternative, right? Unfortunately, that takes time, but slowly, we're going to see some of the results.

因此，有幾件事確實推動了利潤率的提高。一是產品改進，產品結構改進措施。另一方實際上處於負載不足的情況。所以就像加里提到的那樣，我們實際上會繼續盡量減少影響，繼續將其他產品移植到我們自己的內部晶圓廠作為替代方案，對嗎？不幸的是，這需要時間，但慢慢地，我們將看到一些成果。

So I would say that's the reason you're actually seeing probably better than your expected margin -- gross profit margin overall, based on the guidance.

所以我想說，這就是您實際看到的利潤率可能好於預期的原因——基於指引，整體毛利率是好的。

Okay. Is there a way to think about how far you are through that porting over process? Is there a threshold or maybe just a way to think about the magnitude that's happening to the gross margin at this point?

好的。有沒有辦法思考一下您完成移植過程的進展如何？是否存在一個閾值，或者只是一種思考此時毛利率變化幅度的方法？

I think that will be ongoing quarter-by-quarter effort, right? I think not only do we need to qualify the process, the technology, the devices, we also need to work with the customers to qualify that device onto their boards. So I would say it's an ongoing process, and it's probably going to take another number of quarters, continue to improve over time. But we strongly believe that with believe 2025 is actually going to be a better year. So that's also going to drive some of the revenue at the same time, driving some of the loading. So we're actually pretty confident that overall, you're going to see improvements throughout the quarters within 2025.

我認為這將是持續逐季度的努力，對嗎？我認為我們不僅需要驗證製程、技術和設備，我們還需要與客戶合作以確保該設備能夠安裝到他們的電路板上。所以我想說這是一個持續的過程，可能還需要幾個季度的時間，並且隨著時間的推移而不斷改進。但我們堅信，2025 年將會是更好的一年。所以這也將同時增加部分收入，推動部分負荷。因此，我們實際上非常有信心，總體而言，您將在 2025 年的各個季度看到改善。

Great, thanks so much.

太好了，非常感謝。

William Stein, Truist Securities.

威廉·斯坦（William Stein），Truist Securities。

Great for taking my question. First, I'm hoping you might give us some clues as to how you expect revenue to perform in each of the end markets in Q1.

很高興回答我的問題。首先，我希望您能為我們提供一些線索，告訴我們您預期第一季各終端市場的營收表現如何。

Okay. All right. So automotive, still going through inventory rebalancing and coupled with weaker demand overall, right, especially from the Europe territory. So, we think Q1 is going to be a challenging quarter overall. As you can see, I mean, even with the Q4 challenges, we try to maintain the 19% overall of the product revenue I think that will continue to be the focus. It's actually focused on the content expansion and the market share gain overall. So over the industrial market, we're still seeing ongoing inventory rebalancing. Some customers’ situations are worse than the others, definitely some are better, so not everything equal. But all in all, we see that will continue probably linger through the second quarter.

好的。好的。因此，汽車產業仍處於庫存再平衡階段，整體需求較弱，尤其是歐洲地區。因此，我們認為第一季總體來說將是一個充滿挑戰的季度。正如您所看到的，即使面臨第四季度的挑戰，我們仍試圖維持產品收入的 19%，我認為這將繼續成為重點。它實際上專注於內容擴展和整體市場份額的成長。因此，在工業市場，我們仍然看到庫存正在持續重新平衡。有些顧客的情況比其他顧客更糟，但肯定有些顧客的情況要好一些，所以並不是所有情況都是相同的。但總的來說，我們認為這種情況可能會持續到第二季​​。

And for the compute market segment for Q1, we expect it probably to be slightly down because also Chinese New Year manufacturing, a lot of that is in Asia. So that will be impacted overall.

對於第一季的計算市場部分，我們預計可能會略有下降，因為中國新年期間製造業很大一部分在亞洲。所以整體來說這會受到影響。

And the consumer was never a strong quarter in the first quarter so we don't expect consumer to be a growth quarter as well as communication. I think on the communications side, on the enterprise traditional networking, we're actually seeing some of the inventory rebalancing improving overall, so that might give us some of the upside, but the smartphone is actually going to probably be challenged in the first quarter. So I would say, all in all, it's still going to be a down quarter. So, as a conclusion, right, so we guided 4.8% down for the whole quarter.

由於消費業務在第一季表現並不強勁，因此我們預期消費業務和通訊業務也不會成長。我認為在通訊方面，在企業傳統網路方面，我們實際上看到一些庫存重新平衡總體上正在改善，所以這可能會給我們帶來一些好處，但智慧型手機實際上可能會在第一季面臨挑戰。因此我想說，總的來說，這仍然將是一個下降的季度。所以，總而言之，我們預計整個季度將下降 4.8%。

But that's still the better seasonality first quarter.

但這仍然是季節性較好的第一季。

Yeah.

是的。

Okay. Let me ask about operating leverage. Compared to the December of 2022 quarters 2 years ago, but your revenue is down 32%. Your OpEx is only down 10%, which is fine. I assume it means there's significant fixed cost in your OpEx.

好的。讓我問一下營業槓桿的問題。與兩年前的 2022 年 12 月季度相比，您的收入下降了 32%。您的營運支出僅下降了 10%，這很​​好。我認為這意味著你的營運支出中存在大量固定成本。

But as your revenue recovers, assuming we, even if we don't get back to that exact level, but as you grow should we think there's going to be sort of similar positive operating leverage on the way up? Or have you added costs that make that might make the leverage less severe or less significant as it was on the way down?

但是隨著您的收入恢復，假設我們，即使我們沒有回到那個確切的水平，但隨著您的成長，我們是否應該認為在上升過程中會出現類似的正向經營槓桿？或者您增加了成本，使得槓桿率可能不像下降時那麼嚴重或那麼重要？

I would say that to you, Will, that we have, there's no real structural things that we've added across that window. We basically had picked up the Onsemi and the Texas Instruments factory across the last number of years. And then what we've done is you saw that across the last couple of years, we brought down overall OpEx spend from '22 to '23 and then '23 to '24. I think what you'll see is there's a good bit of leverage to that as we go forward. I think we get -- a lot of that will -- we've talked about the leverage we get in our margin, not only as we start to grow, we get the benefit of pulling those, some of the sourcing of those products inside versus out. And then that infrastructure, obviously, is inside the company now versus outside in terms of some of the manufacturing footprint. But I think you're going to see the leverage is good. There's not -- I don't expect that to scale back up. I actually think that what you're going to see is that OpEx as a percentage of revenue will start coming back down, kind of plateau and then start coming back down as revenue starts to grow, which we feel strongly that fourth quarter was year-over-year growth. First quarter, we're guiding year-over-year growth, and we expect that to continue through the year. We don't guide out further officially, but that's our feeling, that's our expectation. And that's what you'll see on the OpEx side is that it will continue to kind of come down across the quarters.

威爾，我想告訴你，我們並沒有在那個視窗中添加任何真正的結構性的東西。在過去幾年裡，我們基本上收購了安森美（Onsemi）和德州儀器（Texas Instruments）工廠。然後我們所做的就是，您會看到，在過去幾年中，我們將整體營運支出從'22 年降低到'23 年，然後從'23 年降低到'24 年。我想，隨著我們不斷前進，你會看到這會產生很大的影響力。我認為我們得到了 - 其中很多 - 我們已經討論了我們在利潤中獲得的槓桿作用，不僅是在我們開始成長時，我們還獲得了從內部而不是外部採購這些產品的好處。顯然，從部分製造足跡來看，這些基礎設施現在位於公司內部，而不是公司外部。但我認為你會看到槓桿作用很好。沒有——我不認為它會再次縮減。我實際上認為，你會看到，營運支出佔收入的百分比將開始回落，達到穩定水平，然後隨著收入開始增長而開始回落，我們強烈感覺到第四季度是同比增長的。第一季度，我們預計將同比增長，並且預計這種增長將持續到全年。我們沒有正式指導進一步的工作，但這是我們的感覺，這是我們的期望。從營運支出方面來看，您將看到它在各個季度中將繼續下降。

Great. Thanks, guys.

偉大的。謝謝大家。

(Operator Instructions)

（操作員指令）

David Williams, Benchmark.

大衛威廉斯，基準。

Hey, thanks for taking the follow up and forgive me if I missed this as my line dropped out, but I wanted to ask maybe on pricing trends, what you're seeing there, have you seen erosion is greater than you would typically see or does that seem to calm down a bit just from a pricing perspective?

嘿，感謝您的跟進，如果我因為線路中斷而錯過了這個，請原諒我，但我想問一下也許關於價格趨勢，您在那裡看到的侵蝕是否比您通常看到的更大，或者從價格的角度來看，這是否似乎有所平靜？

Yeah, David. I think the pricing is pretty stable. We think our -- remember, I talked about 1.5% to 2% built in per quarter. still within that range. So, I wouldn't say the overall environment changed a lot.

是的，大衛。我認為定價相當穩定。我們認為—記住，我說過每季內建 1.5% 到 2%。仍在該範圍內。所以，我不會說整體環境已經發生了很大變化。

We see more price competition from the deep commodity and commodity area. That's also the area we have been strategically defocusing. And so I would say all in all, it's actually stable.

我們看到來自深層商品和商品領域的價格競爭更加激烈。這也是我們一直策略性地淡化的領域。所以我想說，總的來說，它實際上是穩定的。

And another important thing is we're probably going to emphasize a lot on our product portfolio enhancement on that we introduced a lot of new products, not only limited automotive but also for the different kind of segments that we can enjoy a much better ASP than GP percent on those kind of new products we introduced to the market. So, we can balance it like commodity loss in some markets.

另一件重要的事情是，我們可能會非常強調我們產品組合的增強，我們推出了許多新產品，不僅限於汽車產品，還針對不同類型的細分市場，我們可以享受到比我們向市場推出的新產品的毛利率高得多的平均售價。因此，我們可以像某些市場的商品損失一樣來平衡它。

Okay. Great. And then one -- just one last one, if I may. On the AI side, you've seen some really nice growth this year per box, as you mentioned. Is that driven more by the just greater sockets available? Or is it your product portfolio? Or what's really driving that opportunity within that certain kind of market for you?

好的。偉大的。然後──如果可以的話，我再問最後一個問題。在人工智慧方面，正如您所說，今年每個盒子都實現了非常好的成長。這是否更多的是由於可用的插座更多？還是您的產品組合？或者，是什麼真正推動了您在某個特定市場中獲得這樣的機會？

I think it's combined of all right. So we are expanding our product portfolio. We're having some of the newer products overall supporting the server or the AI server applications. We also see with the AI server application with certain chipsets there is additional PCI Express ports required, and we actually have this PCI Express packet switch portfolio that's very well suited to really support this kind of application with the requirement of additional PCIe ports. So, I would say a combination of quite a number of different things. Of course, the volume and the change overall market, it's all beneficial to our overall growth.

我認為這些結合起來還是不錯的。因此我們正在擴大我們的產品組合。我們有一些新產品全面支援伺服器或 AI 伺服器應用程式。我們還看到，在具有某些晶片組的 AI 伺服器應用程式中，需要額外的 PCI Express 端口，而我們實際上擁有這種 PCI Express 分組交換器產品組合，它非常適合真正支援這種需要額外 PCIe 端口的應用程式。所以，我想說，這是多種不同事物的結合。當然，整體市場的數量和變化都有利於我們的整體成長。

Great thanks again certainly appreciate it.

非常感謝，再次表示感謝。

That concludes our question-and-answer session. I would 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。我想將會議交還給 Gary Yu 做最後發言。

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。

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

會議現已結束。感謝您參加今天的演講。現在您可以斷開線路了。