Entegris Inc (ENTG) 2019 Q3 法說會逐字稿

Good day, everyone, and welcome to Entegris Third Quarter 2019 Earnings Release Call. Today's call is being recorded.

大家好，歡迎參加 Entegris 2019 年第三季財報發布電話會議。今天的通話將會被錄音。

At this time, for opening remarks and introductions, I would like to turn the call over to Bill Seymour, Entegris' Vice President of Investor Relations. Please go ahead, sir.

此時此刻，我謹將電話轉交給 Entegris 投資者關係副總裁 Bill Seymour，由他來致開幕詞和介紹。請繼續，先生。

Good morning, everyone. Earlier today, we announced the financial results for our third quarter of 2019. Before we begin, I would like to remind listeners that our comments today will include some forward-looking statements. These statements involve a number of risks and uncertainties, and actual results could differ materially from those projected in the forward-looking statements. Additional information regarding these risks and uncertainties are contained in our most recent annual report and subsequent quarterly reports that we have filed with the SEC. Please refer to the information on the disclaimer slide in the presentation.

各位早安。今天早些時候，我們公佈了2019年第三季的財務業績。在開始之前，我想提醒各位聽眾，我們今天的評論將包含一些前瞻性陳述。這些聲明涉及諸多風險和不確定性，實際結果可能與前瞻性聲明中預測的結果有重大差異。有關這些風險和不確定性的更多信息，請參閱我們向美國證券交易委員會提交的最新年度報告和後續季度報告。請參閱簡報中免責聲明投影片上的資訊。

On this call, we will also refer to non-GAAP financial measures as defined by SEC in Regulation G. You can find a reconciliation table in today's press release as well as on the Investor Relations page of our website at Entegris.com.

本次電話會議中，我們也將提及美國證券交易委員會G條例定義的非GAAP財務指標。您可以在今天的新聞稿以及我們網站Entegris.com的投資者關係頁面上找到調節表。

On the call today are Bertrand Loy, our CEO; and Greg Graves, our CFO. I'll hand it over to Bertrand.

今天參加電話會議的有我們的執行長 Bertrand Loy 和我們的財務長 Greg Graves。我會把它交給伯特蘭。

Thank you, Bill. I will make some comments on our third quarter performance, how we see the industry environment and discuss our expectations for the balance of the year. Greg will follow with more details on our financial results, and our guidance for the fourth quarter. We'll then open the line for questions.

謝謝你，比爾。我將對我們第三季的業績、我們對行業環境的看法以及我們對今年剩餘時間的預期發表一些評論。格雷格隨後將詳細介紹我們的財務業績以及第四季的業績展望。接下來我們將開放提問環節。

Our third quarter performance was solid, with many positives but also a few things that were below our expectations. On the positive side, sales in the third quarter grew sequentially, both as reported and also on an organic basis. Driving that top line growth was strong momentum with our advanced solutions in new nodes and logic and foundry as we anticipated. This growth was particularly highlighted by good performance in our Microcontamination Control and Advanced Materials Handling division.

我們第三季的業績表現穩健，有很多正面的方面，但也有一些方面低於我們的預期。從積極的方面來看，第三季銷售額環比增長，無論是按報告數據還是按有機增長計算都是如此。正如我們預期的那樣，推動營收成長的是我們在新節點、邏輯和代工方面的先進解決方案的強勁勢頭。這一增長尤其體現在我們微污染控制和先進材料處理部門的良好表現。

In our second quarter call, we said that our CapEx-driven products had improved order patterns, and this resulted, as expected, in sales that were up significantly sequentially in Q3 for products such as FOUPs, gas filters and gas purifiers. Good expense control was also evident during the quarter driven by disciplined execution and the benefits of the recently announced reorganization. All of this translated into improved profitability with adjusted EBITDA levels reaching 27% of sales, which represented a sequential increase of 13%.

在第二季電話會議上，我們表示，資本支出驅動的產品訂單模式有所改善，正如預期的那樣，第三季度FOUP、氣體過濾器和氣體淨化器等產品的銷售額環比大幅增長。本季度，由於嚴格的執行和最近宣布的重組帶來的益處，費用控制也表現良好。所有這些都轉化為盈利能力的提高，調整後的 EBITDA 水平達到銷售額的 27%，環比增長 13%。

On the other hand, the performance of our SCEM division was below our expectations for the quarter. This was the result of temporary supply constraints in our specialty coatings and specialty gas businesses, and the timing of shipments in our graphite business. We believe these operational issues are largely behind us and we expect SCEM to end the year on a high note. Finally, gross margin was lower than expected for the third quarter. We expect gross margins to improve in Q4, and Greg will provide more perspective on this shortly.

另一方面，我們供應鏈管理部門的季度業績低於預期。這是由於我們的特殊塗料和特殊氣體業務暫時受到供應限制，以及石墨業務的出貨時間安排所致。我們相信這些營運問題已基本解決，並預計 SCEM 將以優異的成績結束今年的業績。最後，第三季的毛利率低於預期。我們預計第四季度毛利率將有所改善，Greg稍後將對此提供更多見解。

Let me now cover our view on the industry. Logic and foundry continue to be solid driven by favorable seasonal demand, near-normal utilization rates and the positive impact of key new technology node transitions. On the other hand, in the memory market, utilization rates and wafer starts remain relatively low at most customers. However, while the mixed signals persisted, the overall memory market appears to be stabilizing and in some cases, improving, particularly in the NAND segment. In addition, the CapEx market did show some encouraging signs of improvement in Q3. Overall, our performance in the third quarter was solid. I am proud of our team's ability to deliver these results in light of the significant organizational changes we implemented during the quarter and in the midst of continued industry softness. And of course, our performance this year demonstrates that our unit-driven business model is highly resilient and very differentiated. As we are currently seeing in the recent technology node transitions, greater materials intensity and greater materials purity will be the 2 defining factors of the next generation of semiconductor performance. And as you know, Entegris operates at the crossroads of materials intensity and materials purity. In other words, we have never been better positioned and more relevant for our customers to help them achieve the targeted levels of chip performance, yields and reliability. Over the past 6 years, we have allocated more than $3 billion of capital. Acquisitions have historically been the largest area of capital allocation for us and have been a key component of our growth and a way to broaden our technology and product portfolio. To that end, since the beginning of the year, we acquired GSC and MPD, which significantly enhanced our capabilities in advanced deposition materials. And last month, we acquired Anow, a filtration company for semiconductor and other microelectronics and life sciences applications. Anow is located in Hangzhou, China, and will be part of our Microcontamination division. The addition of Anow, not only brings new membrane technology and liquid filtration offerings to Entegris global portfolio but also provides Entegris with manufacturing capabilities in China.

現在讓我來談談我們對這個行業的看法。邏輯電路和晶圓代工業務繼續保持穩健，這得益於有利的季節性需求、接近正常的利用率以及關鍵新技術節點過渡的正面影響。另一方面，在記憶體市場，大多數客戶的利用率和晶圓開工量仍然相對較低。然而，儘管各種訊號仍然相互矛盾，但整體記憶體市場似乎正在趨於穩定，在某些情況下甚至有所改善，尤其是在 NAND 領域。此外，資本支出市場在第三季確實出現了一些令人鼓舞的改善跡象。整體而言，我們第三季的表現穩健。考慮到我們在本季度實施的重大組織變革以及行業持續疲軟的現狀，我對我們團隊能夠取得這些成果感到自豪。當然，我們今年的業績也證明了我們以銷售為導向的商業模式具有很強的韌性和差異化優勢。正如我們目前在最近的技術節點過渡中看到的那樣，更高的材料強度和更高的材料純度將是下一代半導體性能的兩個決定性因素。如您所知，Entegris 的業務處於材料強度和材料純度的交匯點。換句話說，我們從未像現在這樣處於更有利的地位，也從未像現在這樣與客戶的需求如此契合，能夠幫助他們實現晶片性能、良率和可靠性的目標水平。過去6年，我們已投入超過30億美元的資金。從歷史上看，收購一直是我們最大的資本配置領域，也是我們成長的關鍵組成部分，以及擴大我們的技術和產品組合的一種方式。為此，從年初開始，我們收購了 GSC 和 MPD，這大大增強了我們在先進沉積材料方面的能力。上個月，我們收購了 Anow，這是一家為半導體和其他微電子及生命科學應用領域提供過濾服務的公司。Anow公司位於中國杭州，將成為我們微污染部門的一部分。Anow 的加入不僅為 Entegris 的全球產品組合帶來了新的膜技術和液體過濾產品，而且還為 Entegris 提供了在中國的生產能力。

Looking ahead to the fourth quarter, our guidance for the fourth quarter is based on the strength of our business and not on the expectation of a significant improvement in the industry environment. As we discussed last quarter, the primary driver of our performance is expected to come from the benefits of several important node transitions, which are driving the adoption of many of our process solution. Greg will discuss these drivers in more detail, shortly.

展望第四季度，我們對第四季度的業績預期是基於我們業務的強勁表現，而不是基於對產業環境顯著改善的預期。正如我們上個季度所討論的，我們業績的主要驅動力預計將來自幾個重要節點轉型帶來的益處，這些轉型正在推動我們許多流程解決方案的採用。格雷格稍後將更詳細地討論這些驅動因素。

In closing, I am pleased with our overall results in the third quarter. Our business is starting to show the recovery and momentum we anticipated, and we expect to close out 2019 with strong performance in the fourth quarter, and we are set up well going into 2020.

最後，我對我們第三季的整體業績感到滿意。我們的業務開始展現出我們預期的復甦和發展勢頭，我們預計 2019 年第四季將取得強勁的業績，為 2020 年的到來做好充分準備。

I will now turn the call to Greg for the financial results. Greg?

現在我將把電話轉給格雷格，請他介紹財務表現。格雷格？

Thank you, Bertrand. Our third quarter performance was solid. Q3 sales of $394 million were in line with our guidance. Compared to a year ago, sales were down 1% on a reported basis and down approximately 3% on an organic basis. Sales were up 4% sequentially on a reported basis and were up 2% on an organic basis. Q3 GAAP diluted earnings per share were $0.30, down 12% year-over-year and down 67% sequentially, as Q2 include the proceeds associated with the terminated Versum transaction. On a non-GAAP basis, EPS of $0.50 was up 9% year-over-year and up 28% sequentially. A more favorable and expected non-GAAP tax rate related to discrete items contributed approximately $0.05 to EPS in Q3.

謝謝你，伯特蘭。我們第三季的業績表現穩健。第三季銷售額為 3.94 億美元，符合我們的預期。與去年同期相比，以報告數據計算，銷售額下降了 1%；以自然成長率計算，銷售額下降了約 3%。以報告數據計算，銷售額環比成長 4%；以有機成長計算，銷售額環比成長 2%。第三季 GAAP 稀釋後每股收益為 0.30 美元，年減 12%，季減 67%，因為第二季包含了與終止的 Versum 交易相關的收益。以非GAAP準則計算，每股盈餘為0.50美元，較去年同期成長9%，較上季成長28%。與特定項目相關的更有利且符合預期的非GAAP稅率，在第三季為每股收益貢獻了約0.05美元。

Moving on to gross margins, GAAP gross margin was 43.2% and included the negative impact of approximately $5 million from an inventory write-up associated with the recent acquisitions and restructuring cost. Non-GAAP gross margin was 44.6% in Q3. Gross margin improved modestly sequentially, though it's lower than expected, primarily driven by higher manufacturing costs and unfavorable mix. We expect gross margin to approach 45% on a GAAP basis in Q4. On a non-GAAP basis, we expect gross margins to approach 46% in Q4 driven primarily by higher sales volumes. GAAP operating expenses were $118 million, included a total of approximately $31 million from amortization of intangible assets, restructuring costs, integration costs and transaction fees associated with the MPD and Anow transactions. Non-GAAP operating expenses in Q3 were approximately $88 million. The favorability was driven primarily by effective expense control and the impact of the announced cost reduction initiative. We expect non-GAAP operating expenses will be $90 million to $92 million in the fourth quarter. Last quarter, we announced the strategic organizational realignment, aimed at increasing customer responsiveness. We realized a modest amount of savings from these changes in Q3. We expect to be at the full $20 million annual savings run rate by the end of the year. Q3 GAAP operating income was $53 million or 13.4% of revenue and non-GAAP operating income was $88 million or 22.4% of revenue. Our GAAP tax rate was 2.1% for the third quarter and included a $5 million discrete benefit related to R&D credit and updated tax reform guidance. We expect our full year 2019 GAAP tax rate to be approximately 20%. Our non-GAAP tax rate was 12%. The non-GAAP rate benefited from the same discrete items mentioned with regard to the GAAP rate. We expect our full year non-GAAP tax rate will be approximately 18%, which would imply a Q4 rate of approximately 21%. Adjusted EBITDA for the quarter was approximately $180 million or 27% of revenue.

接下來是毛利率，GAAP 毛利率為 43.2%，其中包括與近期收購和重組成本相關的存貨增值帶來的約 500 萬美元的負面影響。第三季非GAAP毛利率為44.6%。毛利率較上季略有改善，但仍低於預期，主要原因是製造成本上升和產品組合不利。我們預計第四季以美國通用會計準則計算的毛利率將接近 45%。以非GAAP準則計算，我們預期第四季毛利率將接近46%，主要原因是銷量增加。GAAP 營運費用為 1.18 億美元，其中包括與 MPD 和 Anow 交易相關的無形資產攤銷、重組成本、整合成本和交易費用總計約 3,100 萬美元。第三季非GAAP營運費用約8,800萬美元。這種好感主要源自於有效的費用控制和已宣布的成本削減計劃的影響。我們預計第四季非GAAP營運費用將為9,000萬美元至9,200萬美元。上個季度，我們宣布了旨在提高客戶回應速度的策略性組織調整。第三季度，這些改變為我們節省了一筆可觀的成本。我們預計到年底將達到每年 2,000 萬美元的節省目標。第三季 GAAP 營業收入為 5,300 萬美元，佔營收的 13.4%；非 GAAP 營業收入為 8,800 萬美元，佔營收的 22.4%。第三季我們的 GAAP 稅率為 2.1%，其中包括與研發稅收抵免和更新的稅收改革指引相關的 500 萬美元的一次性收益。我們預計 2019 年全年 GAAP 稅率約為 20%。我們的非GAAP稅率為12%。非GAAP利率受益於與GAAP利率相同的離散項目。我們預計全年非GAAP稅率約為18%，這意味著第四季稅率約為21%。本季調整後 EBITDA 約為 1.8 億美元，佔營收的 27%。

Turning to our performance by division. Q3 sales of $128 million for Specialty Chemicals and Engineered Materials, or SCEM, were down 3% from a year ago and up slightly sequentially. The year-over-year decline was primarily driven by the Specialty Materials business. This decline was partially offset by the positive impact of the DSC and MPD acquisition. Adjusted operating margin for SCEM was below our expectations at 18.6%. The decline in operating margin was driven primarily by lower capacity utilization and unfavorable product mix. Despite the Q3 performance, we remain optimistic about SCEM's business. During the fourth quarter, we expect to see a significant improvement in the Specialty Materials business and an increase in deposition materials as a result of the impact of higher materials intensity in new nodes. Q3 sales of $156 million for Microcontamination Control, or MC, were up 3% from last year and up 4% sequentially on both a reported and organic basis. The year-on-year sales increase in the quarter was driven by strong growth in liquid filtration for photoresist and in our bulk gas purification systems. Adjusted operating margin for MC was 31.9%. The year-over-year increase was driven by volume growth and effective expense control.

接下來我們來看看各部門的業績。特種化學品和工程材料（SCEM）第三季銷售額為 1.28 億美元，年減 3%，較上季略有成長。年比下降的主要原因是特種材料業務的下滑。DSC 和 MPD 的收購帶來的正面影響部分抵消了這一下滑。SCEM 的調整後營業利益率為 18.6%，低於我們的預期。營業利益率下降的主要原因是產能利用率降低和產品組合不利。儘管第三季業績不佳，但我們對 SCEM 的業務仍然保持樂觀。預計第四季度特種材料業務將顯著改善，沉積材料也將因新節點材料強度增加而成長。微污染控制（MC）第三季銷售額為 1.56 億美元，比去年同期增長 3%，按報告數據和有機增長計算，環比增長 4%。本季銷售額較去年同期成長主要得益於光阻液體過濾和散裝氣體淨化系統的強勁成長。MC的調整後營業利益率為31.9%。年比成長主要得益於銷售成長和有效的成本控制。

Moving to the fourth quarter. We expect the positive momentum of MC will continue driven by strong sales of liquid filtration to enable the new process node. Q3 sales for Advanced Materials Handling, or AMH, of $117 million was down from last year but was up 9% sequentially. The year-over-year decline in sales was primarily driven by softness in capital-driven business. The sequential increase in AMH sales was driven by a recovery of some of those same CapEx businesses, including FOUP and particle sizing measurement tools, a business we acquired last year. Adjusted operating margin for AMH was 17.2%, down year-over-year but up 300 basis points from Q2. The sequential improvement in AMH margins was primarily driven by the higher volume and effective expense control. Cash flow from operations for the third quarter was $25 million and free cash flow was slightly negative. The lower cash flow reflects higher working capital levels as well as the payment of approximately $20 million of taxes, primarily related to the Versum termination fee. Third quarter CapEx $26 million. We continue to expect to spend approximately $110 million of CapEx in 2019 to support new product introductions, improved technical capabilities and growth in our filtration and liquid packaging business. During Q3, we used approximately $11 million for our quarterly dividend and we repurchased approximately 400,000 shares for $15 million for an average price of $42 per share.

進入第四節。我們預計，在液體過濾業務強勁銷售的推動下，MC 的積極發展勢頭將繼續保持，從而推動新製程節點的實現。先進材料處理公司 (AMH) 第三季銷售額為 1.17 億美元，較去年同期下降，但季增 9%。銷售額較去年同期下降主要是由於資本驅動型業務疲軟所致。AMH 銷售額的環比成長是由部分資本支出業務的復甦所推動的，其中包括 FOUP 和粒度測量工具，這是我們去年收購的業務。AMH 的調整後營業利潤率為 17.2%，年減，但比第二季成長 300 個基點。AMH利潤率的持續改善主要得益於銷售成長和有效的成本控制。第三季經營活動產生的現金流量為 2,500 萬美元，自由現金流略微為負。現金流減少反映了營運資金水準較高，以及支付了約 2,000 萬美元的稅款，主要與 Versum 終止費用有關。第三季資本支出2600萬美元。我們預計 2019 年將投入約 1.1 億美元的資本支出，以支援新產品的推出、技術能力的提升以及過濾和液體包裝業務的成長。第三季度，我們用大約 1100 萬美元支付了季度股息，並以每股 42 美元的平均價格回購了大約 40 萬股股票，總額為 1500 萬美元。

Turning to our outlook for Q4. We expect sales to range from $420 million to $435 million. We expect GAAP EPS to be $0.38 to $0.43 per share and non-GAAP EPS to be $0.51 to $0.56 per share. In summary, we delivered improved performance in Q3 despite a muted industry environment and expect to deliver even better results in Q4.

接下來展望第四季。我們預計銷售額將在 4.2 億美元至 4.35 億美元之間。我們預計 GAAP 每股收益為 0.38 美元至 0.43 美元，非 GAAP 每股收益為 0.51 美元至 0.56 美元。總而言之，儘管行業環境低迷，但我們在第三季度取得了更好的業績，並預計在第四季度將取得更好的成績。

Operator, we'll now take questions.

操作員，現在開始接受提問。

(Operator Instructions) And we'll now take our first question from Toshiya Hari from Goldman Sachs.

（操作員說明）現在我們來回答來自高盛的 Toshiya Hari 的第一個問題。

I had 2. One on your Q4 guide and the other on M&A, broadly. In terms of the Q4 guide, Bertrand, you're obviously guiding revenue up, I think 7% or 8% sequentially at the midpoint, which is significantly above typical seasonality. How much of this is M&A? Just as a reminder, how much of it is organic? And then within organic, the organic component you talked a little bit about the node transitions that contributes to growth. But is there anything kind of onetime embedded in the Q4 guide? Or when we think about modeling Q1 of '20 and beyond, is Q4 the new base line?

我有兩個問題。一個是關於你們第四季的指導意見，另一個是關於併購的，比較廣泛一些。伯特蘭，就第四季業績指引而言，你顯然預計營收將環比成長 7% 或 8%（取中間值），這遠高於典型的季節性成長。其中有多少是併購？提醒一下，其中有多少是有機的？然後，在有機部分，你稍微談到了促進生長的節點轉變。但第四季指南中是否包含任何一次性活動？或者，當我們考慮對 2020 年第一季及以後的情況進行建模時，第四季是否是新的基準線？

And then the second part of the first question. In terms of gross margins, Greg, you talked about higher manufacturing costs and mix being an issue in Q3, is the sequential improvement into Q4 essentially those 2 kind of abating or normalizing? Or is there more to it?

然後是第一個問題的第二部分。格雷格，就毛利率而言，你提到第三季度製造成本較高和產品組合存在問題，那麼第四季度的環比改善是否意味著這兩個問題有所緩解或趨於正常化？或者，事情有更深層的原因？

Toshi, let me start with the first part of your question, and then I will let Greg answer the gross margin question. So to go back to the Q4 guidance, the midpoint represents an 8.5% of sequential growth. And the way you get there, first, if you look at the industry and the assumptions that we have around the industry, it's a combination of wafer starts that we expect to see up modestly, sequentially -- or down, I'm sorry, modestly sequentially. And we expect the industry CapEx to actually enjoy a pretty nice sequential rebound in the mid-teens sequentially as a result of the uptick that we expect to see in logic and memory-related spending. So that's the industry backdrop, which is overall a blend of 2%, up sequentially. So add to that about 100 basis point coming from Anow. So Anow is the Chinese filtration company that we acquired in Q3. And we expect them to contribute about $4 million, a little bit more than $4 million in Q4. So the rest is really organic growth and that implies a 500 basis point organic growth in excess of the market. And the strong performance will come from liquid filtration, deposition materials, specialty coatings, graphite platforms. So most of which are really linked, as you mentioned, to node transitions in advanced logic and advanced memory.

Toshi，我先回答你問題的第一部分，然後我會請 Greg 來回答毛利率的問題。回到第四季業績指引，其中數值代表環比成長 8.5%。而要實現這一目標，首先，如果你觀察一下這個行業以及我們對這個行業的假設，你會發現晶圓開工量預計會環比小幅增長——或者，抱歉，是環比小幅下降。我們預計，由於邏輯和記憶體相關支出預計會增加，產業資本支出將出現相當不錯的環比反彈，達到十幾個百分點。這就是行業背景，整體而言，環比增長 2%。所以再加上來自 Anow 的大約 100 個基點。所以，Anow 是我們第三季收購的中國過濾公司。我們預計他們在第四季將貢獻約 400 萬美元，略高於 400 萬美元。所以剩下的部分其實都是內生成長，這意味著內生成長比市場高出 500 個基點。而強勁的性能將來自液體過濾、沉積材料、特殊塗層和石墨平台。所以，正如您所提到的，其中大部分實際上都與高級邏輯和高級記憶體中的節點轉換有關。

So second part of your question is, well, is it the new normal? I'm not sure I would necessarily run rate that momentum. We like our momentum. But as you know, a lot of those new node transitions that we expect going into 2020 are still hard to forecast, both in terms of the timing of those transitions as well as the magnitude of those node transitions. So again, let's focus on Q4 for now. We like the momentum in Q4. I think it bodes well for the future. And I will turn the mic to Greg to answer the question on gross margin.

所以你的問題的第二部分是，嗯，這是新的常態嗎？我不確定我是否一定會保持這種勢頭。我們喜歡目前的發展動能。但如您所知，我們預計在 2020 年將會出現許多新的節點轉換，但這些轉換的時機和規模仍然難以預測。所以，我們還是先把重點放在第四季吧。我們看好第四季的發展動能。我認為這預示著美好的未來。接下來，我將把麥克風交給格雷格，讓他回答關於毛利率的問題。

Yes, so with regards to gross margin, a couple of things. One, we talked about Q3 being slightly short of our guidance and that was a function of mix and some manufacturing inefficiencies. As we move into Q4, the improvement is really twofold. We don't expect much change in mix, the improvement is largely volume and improved manufacturing efficiencies.

是的，關於毛利率，有幾點需要說明。第一，我們討論過第三季業績略低於預期，這是由於產品組合和一些生產效率低下造成的。進入第四季度，情況將得到兩方面的改善。我們預期產品組合不會有太大變化，改進主要體現在產量和生產效率的提高。

Got it. And then my second question on M&A. Bertrand, you touched briefly on the Anow acquisition in your prepared remarks. But if you can kind of elaborate on that, perhaps the history that you guys have with the company? And what was unique about Anow and the potential revenues synergies when you think about the combination over the next couple of years? And then related to that, if you can touch on the M&A pipeline going forward? Clearly, M&A is becoming a bigger percentage of your long-term growth model, it seems like. How comfortable are you with the sustainability of M&A as you kind of look across your businesses over the next couple of years?

知道了。然後，我的第二個問題是關於併購的。伯特蘭，你在事先準備好的發言稿中簡要提到了對 Anow 的收購。如果您能詳細說明一下，例如您和這家公司之間的淵源？那麼，Anow 的獨特之處是什麼？考慮到未來幾年的合併，潛在的收入綜效又是什麼？另外，您能否談談未來的併購計畫？顯然，併購在你的長期成長模式中所佔的比例越來越大。展望未來幾年貴公司各項業務的發展，您對併購的永續性有多大信心？

Sure. So as you mentioned, Toshi, acquisitions are certainly a major part of our growth strategy. I believe that we've been very effective acquirers in the past. And our M&A pipeline remains rich and, I believe, actionable in many ways. So in other words, I think, we will have opportunities to add to the already long list of small- to midsized deals that we have been completing in 2018, and then in 2019 with DSC, MPD and Anow in Q3. When it comes to Anow, this is a company we know well. It has been a long-time supplier of certain types of membrane to Entegris, and we've been in discussion with Anow for a number of years. So what we like about this acquisition is that it brings not only complementary membrane technology but also expands greatly the filtration portfolio that we already have at Entegris. And that's going to help us not only expand in China and capitalize on the strength of the Chinese market, but also access and help Anow expand their reach and expand their technical capabilities to access non-Chinese market on a global scale. So we are very excited to welcome our new colleagues to the Entegris team. We have high expectation for this business. This is a business that today generates a little bit less than $20 million annually, and we would expect that business to grow in the mid-20s on a CAGR basis for the years to come.

當然。正如你所說，Toshi，收購無疑是我們成長策略的重要組成部分。我認為我們過去一直是非常有效的收購者。我們的併購專案儲備依然豐富，而且我認為在許多方面都可行。換句話說，我認為，我們將有機會在 2018 年完成的眾多中小規模交易的基礎上再添新成員，然後在 2019 年第三季度與 DSC、MPD 和 Anow 達成更多交易。說到 Anow 這家公司，我們非常了解。該公司長期以來一直是 Entegris 某些類型膜的供應商，我們與 Anow 也進行了多年的洽談。因此，我們喜歡此次收購的原因在於，它不僅帶來了互補的膜技術，而且還大大擴展了 Entegris 已有的過濾產品組合。這不僅有助於我們在中國擴張並利用中國市場的優勢，而且還有助於Anow擴大其業務範圍，並提升其技術能力，從而在全球範圍內進入非中國市場。我們非常高興地歡迎新同事加入 Entegris 團隊。我們對這家企業寄予厚望。該業務目前每年產生略低於 2,000 萬美元的收入，我們預計未來幾年該業務的複合年增長率將達到 20% 左右。

We will now take our next question from Sidney Ho from Deutsche Bank.

接下來，我們將回答來自德意志銀行的 Sidney Ho 提出的問題。

I just want to follow with the previous question. I know Q4 guidance up 8% to 9% is pretty good. But it's not as much as your implied guidance from the last quarter, especially given there is some upside from your large Taiwan customers, and I think you just mentioned that Q3 was supply constrained in, I think, SCEM. I wonder if there's any offset here as compared to what you expected a quarter ago.

我想接著上一個問題繼續問下去。我知道第四季業績預期上調 8% 到 9% 相當不錯。但與你上一季的暗示性指導相比，這還是略有不足，尤其考慮到你的台灣大客戶還有一些增長空間，而且我認為你剛才也提到了第三季度供應鏈和電子製造（SCEM）的供應受到限制。我想知道這和您一個季度前的預期相比，是否存在任何偏差。

So Sidney, no, I think what we are guiding to is very much consistent with what we've been describing. If you look at Q4 and you put that in the broader context of the full year performance, we are very much in line with the stated objective of outpacing the industry by 500 to 600 basis points in 2019. And I think that that's really what the midpoint of that guidance would suggest. So no, we feel good -- as I said, we feel good about the success of a number of new products that we introduced in the market this year. We feel good about the level of engagement with our advanced logic and advanced memory customers. And frankly, I think that the guidance that we're providing for Q4 and for the full year, I think, is well ahead of our stated long-term objectives of outpacing the industry by 200 to 300 basis points.

所以西德尼，不，我認為我們引導的方向與我們一直在描述的方向非常一致。如果看一下第四季度，並將其放在全年業績的更廣泛背景下進行分析，我們非常接近2019年超越行業平均水平500至600個基點的既定目標。我認為這才是該指導的中點真正想表達的意思。所以，不，我們感覺很好——正如我所說，我們對今年推向市場的許多新產品的成功感到滿意。我們對與高級邏輯和高級記憶體客戶的互動程度感到滿意。坦白說，我認為我們為第四季度和全年提供的業績指引，遠遠超過了我們設定的長期目標，即比行業平均水平高出 200 到 300 個基點。

Okay. Great. My follow-up to that is, I think last quarter, you expected industry MSI for this year to be down 3% to 4%. What are your thoughts now, I guess, for both MSI and the CapEx side of things? And do you have any preliminary thoughts on MSI for next year? And what are the moving parts that we should be paying attention to?

好的。偉大的。我的後續問題是，我認為上個季度您預計今年的行業 MSI 將下降 3% 至 4%。我想，您現在對微星科技和資本支出有什麼想法？您對明年的MSI有什麼初步想法嗎？那麼，我們該關注哪些關鍵因素呢？

Yes. So I think that last time we spoke, we were projecting MSI down in the mid-single digits, and I think right now we expect MSI down about 7% on a full year basis in 2019. And we expect CapEx to be down in the low teens for 2019, and that's really what is behind our full year guidance for 2019. It's too early for us to quantify our views on 2020. I think that there is certainly a lot more optimism in the industry right now, a more positive tone around capital spending and production levels. But I think it's too early for you -- for us to give you a guidance around 2020.

是的。所以我覺得上次我們談話時，我們預測 MSI 將下降個位數百分比，而現在我們預計 MSI 在 2019 年全年將下降約 7%。我們預計 2019 年資本支出將下降 10% 左右，這正是我們對 2019 年全年業績預測的依據。現在就對2020年做出量化評價還為時過早。我認為目前業內人士普遍更加樂觀，對資本支出和生產水準的看法也較為正面。但我認為現在對你來說——或者說對我們而言——為 2020 年提供指導還為時過早。

So just to be clear the CapEx being down low teens is an improvement from what you thought before?

所以，為了明確起見，資本支出降至十幾個百分點，這比你之前預想的還要好嗎？

Yes.

是的。

Our next question comes from Patrick Ho from Stifel.

我們的下一個問題來自 Stifel 公司的 Patrick Ho。

Bertrand, maybe first is a big-picture question, in terms of the opportunity for your Specialty Chemicals and Electronic Materials business, as NAND goes to additional layers, how do you see the opportunity from a content perspective? Both I guess from an increasing layers as well as potentially new materials being used? How do you see that opportunity as the 3D NAND industry moves to 128 layers and above?

Bertrand，或許首先要問的是一個宏觀問題，就您的特種化學品和電子材料業務而言，隨著 NAND 快閃記憶體向更多層發展，您從內容角度如何看待這一機遇？我猜想這可能是由於層數增加以及可能使用了新材料造成的？隨著 3D NAND 產業向 128 層及以上發展，您如何看待其中的機會？

That certainly remains one of the most attractive opportunities for us, both in terms of deposition materials but also in terms of new ways of cleaning the wafers in between various deposition steps and after the CMP process steps. So I think we have many opportunities for us to position our SCEM portfolio on the technology road map of advanced memory makers, and our teams have been very busy doing that for the last several years. So as we see more wafers produce that 96 and then 128 layers, you should see an acceleration in the top line of our SCEM platform.

這無疑仍然是我們最具吸引力的機會之一，無論是在沉積材料方面，還是在各種沉積步驟之間以及 CMP 製程步驟之後清潔晶圓的新方法方面。所以我認為我們有很多機會將我們的 SCEM 產品組合定位在先進記憶體製造商的技術路線圖上，而我們的團隊在過去幾年裡一直非常忙於這樣做。因此，隨著越來越多的晶圓生產出 96 層和 128 層晶圓，我們的 SCEM 平台的頂級產品線應該會加速發展。

Great. That's helpful. And maybe as my follow-up question, looking at the advanced foundry and logic and where there is also a lot more changes on the manufacturing front, there is also a lot more new materials being used in those manufacturing processes. How do you look at advanced logic in terms of the opportunities ahead, both from a content perspective also? And new materials that are being used such as cobalt. Materials from that front where it hasn't been used previously. How do you see the opportunity from a big-picture perspective?

偉大的。那很有幫助。或許我的後續問題是，考慮到先進的晶圓代工和邏輯電路，以及製造方面發生的許多變化，這些製造過程中也使用了許多新材料。從內容角度來看，您如何看待高階邏輯在未來帶來的機會？以及正在使用的新材料，例如鈷。來自該前線以前未曾使用過的材料。從大局來看，您如何看待這個機會？

I think that all of those opportunities are, again, very, very exciting. We have been consciously focused on some of those new materials, cobalt, lithium and a few others, waiting for those materials to be broadly adopted by the semiconductor industry, both in logic and memory. I think we are approaching that turning point. And I think that with the acquisition of DSC, MPD and all of the investments that we have made internally, I think that we are really well positioned to support the adoption of those materials. Many of those materials, by the way, will be solid materials, and that comes with a number of challenges. And I think that at Entegris, we've been able to really develop some very unique solutions, leveraging the capabilities of our 3 divisions to palletize those materials in a solid form, but also to develop a very unique delivery system that considerably made the solids before the metal can be deposited on to the wafer, and purify the gas on the outlet. So we have that very unique system approach that is leveraging all of the capabilities of the various business units that we have in our portfolio. So again, I think, we are well positioned to support the adoption or the introduction of those new metals in the advanced chips, and we just cannot wait for that to be the case.

我認為所有這些機會都非常、非常令人興奮。我們一直有意識地專注於一些新材料，例如鈷、鋰和其他一些材料，等待半導體產業在邏輯和儲存領域廣泛採用這些材料。我認為我們正接近那個轉折點。我認為，透過收購 DSC、MPD 以及我們在內部進行的所有投資，我們完全有能力支持這些材料的採用。順便說一句，這些材料中有很多都是固體材料，這會帶來許多挑戰。我認為在 Entegris，我們已經能夠真正開發出一些非常獨特的解決方案，利用我們 3 個部門的能力，將這些材料以固體形式進行托盤化，同時還開發了一種非常獨特的輸送系統，該系統在金屬沉積到晶圓之前大大提高了固體的含量，並在出口處淨化了氣體。因此，我們擁有非常獨特的系統方法，充分利用我們投資組合中各個業務部門的所有能力。所以，我認為，我們已經做好充分準備，支援在先進晶片中採用或引入這些新型金屬，我們迫不及待地想要看到這種情況發生。

Great. And final question from me, related to those 2 questions from Greg, in terms of R&D spending. I know R&D can be lumpy just because of the timing of certain projects. But given a lot of these changes and inflections in the semiconductor manufacturing process, how do you see R&D longer term? Is there a need to kind of, I guess, elevate R&D to keep up with these? Or do you feel very comfortable with the percentages you have today?

偉大的。最後一個問題，與 Greg 提出的那兩個問題有關，是關於研發支出的。我知道研發過程可能會出現波折，這主要是因為某些專案的進度安排。但考慮到半導體製造過程中發生的許多變化和轉折，您如何看待研發的長期發展？我想，是否有必要提升研發投入以跟上這些發展？或者您對目前的百分比感到非常滿意？

Our targeted R&D spend is 8% of revenue over the long haul, Patrick, and we were a little bit light of that in the most recent quarter, but that's our intent now. But you're accurate, I mean we will need to increase that spending over time. But at this point, our intent is to increase that really in line with increases in revenue.

派崔克，我們長期的研發支出目標是營收的 8%，最近一個季度我們略低於這個目標，但這是我們現在的計畫。但你說得對，我的意思是，隨著時間的推移，我們需要增加這方面的支出。但目前，我們的目標是隨著收入的成長而增加這一比例。

We'll now take our next question from Christ Kapsch from Loop Capital Markets.

接下來，我們將回答來自 Loop Capital Markets 的 Christ Kapsch 的下一個問題。

So I'm juggling some conference calls this morning, so apologize if you touched on this already, but obviously, there is -- everybody saw the news about TSMC's pretty dramatic CapEx increase, and I guess pundits are referring that up about being all about 5G. But my curiosity is, is that you've -- Bertrand, you've talked about how impressed you were with the -- with TSMC's ramp and yield improvement at 7 nanometers, and that they were already starting to tape-out 5 nanometers. So my question now to you is, is there any way to frame up the opportunity for Entegris as TSMC transitions and ramps to 5 nanometer node in terms of either the process of record wins that you've been able to achieve? Or if there is a way to think of it in terms of content for chips and just timing on them? And which segments would benefit the most from that transition?

今天早上我忙著參加幾個電話會議，所以如果您已經提到過這件事，請見諒。但很顯然，大家都看到了台積電大幅增加資本支出的新聞，我想評論員都認為這與 5G 有關。但我好奇的是，伯特蘭，你曾說過你對台積電在 7 奈米製程上的產能提升和良率提高印象深刻，而且他們已經開始流片 5 奈米製程了。所以我現在想問您的是，隨著台積電向 5 奈米節點過渡並加速生產，Entegris 能否從您取得的創紀錄的成功案例的角度來闡述其發展機會？或者，有沒有辦法從晶片的內容和投放時間的角度來考慮這個問題呢？那麼，哪些群體將從這種轉變中受益最大呢？

So Chris, we won't talk about customer-specific opportunities. We've never done that. But I think if you look at our performance in Taiwan, I think that itself is a good proxy for the magnitude of the opportunities that we have at certain customers on the island. I would only say that a lot of the new architectures will drive the need for the adoption of new materials and new chemistries. We also require greater levels of purity, and all of that will actually render our value proposition increasingly important for all of the technology leaders. So I think we are really well positioned. This is really what is behind our long-term commitment to outpace the industry by 200 to 300 basis points. So again, putting aside any customer-specific consideration, the reason why we've been willing to make that very bold commitment to consistently outpace the industry is because we believe that there are a number of exciting opportunities in SCEM, in filtration and even in AMH at those advanced notes, and I would leave it at that.

所以克里斯，我們就不討論針對特定客戶的機會了。我們從未這樣做過。但我認為，如果你看看我們在台灣的業績，這本身就能很好地反映出我們在島上某些客戶所擁有的巨大機會。我只想說，許多新的建築結構將推動對新材料和新化學技術的需求。我們也要求更高的純度，而所有這些實際上都會使我們的價值主張對所有技術領導者變得越來越重要。所以我認為我們處於非常有利的地位。這正是我們長期致力於超越業界平均 200 至 300 個基點的真正原因。所以，拋開任何針對特定客戶的考慮，我們之所以願意做出如此大膽的承諾，持續超越行業，是因為我們相信在SCEM、過濾領域，甚至在AMH等先進領域都存在許多令人興奮的機會，我就說到這裡吧。

Our next question comes from David Silver from CL King.

下一個問題來自 CL King 的 David Silver。

I'll also preface my remarks by apologizing, I have had to jump around a little bit. I'd like to maybe follow-up and broaden the last question regarding TSMC. But during this earnings period, we've heard comments from other chip makers, some of whom have cut their CapEx, some of whom have forecast sharp declines in revenues for the coming quarters and of course, there were the comments from TSMC. And I'm just wondering given your perspective on the industry, could you -- what might be the 1 or 2 key data points that you take away? So for instance, is this a directional divergence between, let's say, IDMs and foundry memory versus logic? And I'm also wondering if there is a divergence between maybe a more rapid adoption of the next node or the node transitions you've mentioned? And maybe some diminution or erosion in the IoT demand from legacy nodes that, I believe, has been a pleasant surprise or a pleasant tailwind to your business and other suppliers over the last few years.

在開始發言之前，我先道個歉，我的發言可能有點跳躍性。我想就台積電的最後一個問題做個補充和拓展。但在本財報發布期間，我們聽到了其他晶片製造商的評論，其中一些製造商削減了資本支出，一些製造商預測未來幾個季度的收入將大幅下降，當然，還有台積電的評論。鑑於您對這個行業的看法，我想問您——您認為最重要的 1 到 2 個數據點是什麼？例如，這是否意味著IDM和代工廠記憶體與邏輯電路之間存在方向性分歧？我還想知道，您提到的下一個節點或節點轉換的快速普及之間是否存在差異？或許，物聯網對傳統節點的需求有所減少或下降，我認為這在過去幾年對貴公司和其他供應商來說是一個令人驚訝的利多因素。

So I -- the way I would probably answer the question is to say that 2019 has been a difficult year to navigate. The industry was choppy. You could see very uneven trends across many different segments, and I think you mentioned some of them with some muted levels of production in mainstream fabs. Some high level of activity on the leading edge and an industry CapEx that was really playing yo-yo throughout the year. And I think that this is why we are actually very proud of our performance in 2019. I think that we've been able to demonstrate the resilience of our business model and the relative stability of our platform in what is still, again, a very challenging business environment in 2019. So again, that bodes well for, hopefully, better years where most of those drivers turn positive. And as I mentioned, I think that there are a lot of reasons for us to be excited about what's ahead of us on the technology road map of the advanced memory and advanced logic makers.

所以——我可能會這樣回答這個問題：2019 年是充滿挑戰的一年。行業情勢動盪。你可以看到許多不同領域的趨勢非常不均衡，我認為你提到了一些主流晶圓廠產量較低的例子。前沿領域的一些活動非常活躍，而行業資本支出在全年都波動不定。我認為這就是為什麼我們對2019年的表現感到非常自豪的原因。我認為，在 2019 年依然充滿挑戰的商業環境中，我們已經證明了我們的商業模式具有韌性，我們的平台也相對穩定。所以，這再次預示著未來幾年情況會好轉，希望大多數不利因素都能轉為正面。正如我之前提到的，我認為，對於先進記憶體和先進邏輯製造商的技術路線圖而言，有很多理由讓我們感到興奮。

Okay. And then just a quick -- I would like to follow up maybe on the question earlier, I believe, regarding your M&A pipeline. So you've noted that your company has made a couple of niche acquisitions to support your efforts in advanced deposition materials, and you also mentioned that the pipeline remains rich. And I'm just wondering, does advanced deposition materials remain a priority as you explore the pipeline of opportunities? Or is the strategy at this point to develop what's already in-house?

好的。然後，我想快速問一下——我想就之前提出的問題，關於你們的併購計劃，再補充一點。您提到貴公司已經進行了一些利基收購，以支持您在先進沉積材料領域的努力，您也提到，產品線仍然很豐富。我想知道，在您探索各種機會的過程中，先進的沉積材料是否仍然是您的優先考慮？或者，目前的策略是開發公司內部已有的技術？

Okay. So if you go back, you will see that our capital allocation framework has been very transparent and very consistent over the last several years, and we have consistently highlighted filtration, highlighted materials and high-treated packaging as areas of our portfolio where we would want to add to. So when it comes to deposition materials, I think that's one of the areas where you should expect us to continue to invest into. And we talked about the reasons behind that choice, but they are other types of materials that could actually become of interest to us. And as I mentioned, I think that the pipeline that we are looking at is a reflection of where we believe there is value to be created and growth to be generated. And I think that we've been pretty successful at acquiring and integrating companies. I'm actually very pleased with the results of the various acquisitions that we've completed over the last 2 years, and I certainly hope that we can add to the pipeline.

好的。因此，回顧過去，你會發現我們的資本配置框架在過去幾年中一直非常透明和一致，我們始終強調過濾、材料和高級處理包裝是我們希望增加投資的投資組合領域。所以，就沉積材料而言，我認為這是我們將繼續投資的領域之一。我們討論了做出這個選擇的原因，但還有其他類型的材料也可能引起我們的興趣。正如我之前提到的，我認為我們正在關注的這條產品線反映了我們認為哪裡可以創造價值、哪裡可以實現成長。我認為我們在收購和整合公司方面相當成功。實際上，我對過去兩年我們完成的各項收購所取得的成果非常滿意，我當然希望我們能夠繼續擴大收購範圍。

Our next question comes from Amanda Scarnati from Citi.

下一個問題來自花旗銀行的阿曼達·斯卡納蒂。

Just talking about sort of capacity, you had mentioned earlier that new capacity was coming online earlier this year with the expectation to add $4 million to $5 million in revenue this quarter and next quarter. Can you just talk about how that capacity is ramping up? And is it still already fully committed? Or are you seeing anything different with regards to that?

說到產能方面，您之前提到過，今年稍早新的產能已經上線，預計本季和下季將增加 400 萬至 500 萬美元的收入。能談談產能是如何逐步提升的嗎？那項承諾是否已經完全落實了？或者你在這方面有什麼不同的發現？

Yes, Amanda, this is a good question, and this is actually one of the operational setbacks that we faced in our SCEM division in Q3. The capacity that we're expecting to bring online in Q3 had some start-up issues, and we're late. And we expect that capacity to come online within the next couple of weeks at this point. So we didn't have access to that capacity in Q3. We expect to recover from that in Q4.

是的，Amanda，這是一個很好的問題，這實際上是我們 SCEM 部門在第三季遇到的營運挫折之一。我們原計劃在第三季投入使用的產能出現了一些啟動問題，所以我們延期了。我們預計該產能將在未來幾週內投入使用。因此，我們在第三季無法使用那部分產能。我們預計第四季情況將有所改善。

And so when that is fully ramped up, is it still about $5 million a quarter at sort of max capacity? Or is there an opportunity to kind of recover some of that, that you would've spent in -- or would have received in the third quarter?

那麼，當產能完全提升後，以最大產能計算，每季是否仍約為 500 萬美元？或者，有沒有機會挽回一些本應在第三季花掉或收到的錢？

Yes. Given where we are in the quarter, I would say I'd expect probably $2 million to $3 million in Q4, but then you're right. Once the full capacity is online and we have the benefit of that on a full quarter, expect that to be closer to $4 million to $5 million, and we should be able to recover some of that business indeed.

是的。鑑於本季目前的狀況，我預計第四季可能會有 200 萬到 300 萬美元的收入，但你說得對。一旦全部產能上線，並且我們能在一個完整的季度內受益，預計收入將接近 400 萬至 500 萬美元，我們應該能夠挽回一部分業務。

Okay. And then can you just remind us what your percentage of sales is to leading edge versus lagging edge? And how that's changed over the last couple of quarters? Are you starting to see any more sort of new activity coming from the leading-edge customers?

好的。那麼，您能否提醒我們一下，您的銷售額中，領先技術和落後技術分別佔多少百分比？過去幾季情況發生了怎樣的變化？您是否開始看到更多來自領先客戶的新活動？

We don't track that very precisely. I mean what we look at is really -- would be a revenue coming from new products and that number is about 30%, roughly. It has come down a little bit this year, simply as a reflection of the fact that the activity levels in advanced memory was a bit lower in '19 than '18. But I think we're seeing the inflection point, and I think that we expect new products to contribute back to about 30% in 2020 and beyond.

我們沒有非常精確地追蹤這方面的數據。我的意思是，我們真正關注的是——來自新產品的收入，這個數字大約是30%。今年有所下降，這僅僅反映了 2019 年高級記憶活動水平比 2018 年略低這一事實。但我認為我們正在迎來轉折點，預計到 2020 年及以後，新產品的貢獻率將恢復到 30% 左右。

Our next question comes from Blake Keating from Seaport Global Securities.

下一個問題來自 Seaport Global Securities 的 Blake Keating。

This is Blake Keating on for Mike Harrison. You commented last quarter that visibility was getting better because forecast were turning into orders. Is your visibility still improving such that you can kind of see that spend recovery? Or should we expect a more uneven recovery over the next 3 to 4 quarters?

這是布雷克·基廷代替麥克·哈里森解說。您在上個季度曾表示，由於預測正在轉化為訂單，因此能見度正在提高。您的市場可見度是否仍在提高，以至於您能夠大致看到支出恢復情況？或者我們應該預期未來 3 到 4 個季度會出現更不均衡的復甦？

So that comment was really done in the context of our CapEx business. And we -- I believe that we have actually pretty good visibility on that part of our business, which represents about 30% of our total platform. And yes, we...

所以那句話其實是在我們資本支出業務的背景下說的。而且——我相信我們對這部分業務的了解相當透徹，這部分業務約占我們整個平台的 30%。是的，我們…

All right. And then...

好的。進而...

Yes, go on.

好的，繼續。

And then another question on M&A. Can you update us on how the integration process is going and maybe your confidence level in being able to leverage these additional capabilities? And then also you kind of touched on it already, but are there still some regions of the world or capabilities where you could improve through acquisitions? And are there acquisitions currently in the pipeline that you're excited about?

然後又問了一個關於併購的問題。能否向我們介紹一下整合過程的進展情況，以及您對利用這些新增功能的信心程度？而您剛才也稍微提到了這一點，那麼世界上是否還有一些地區或能力可以透過收購來提升呢？目前是否有令您感到興奮的收購計畫正在籌備中？

That's a good question. So if you look at the acquisitions that we completed last year, so SAES Pure Gas and PSS, both of those acquisitions are doing extremely well. Actually both of those platforms generated record quarters in Q3, so very pleased with the performance of those businesses. DSC and MPD were still in the very early innings of that integration, and there is actually -- a lot of the integration of MPD would have to do with how we integrate DSC, MPD and our own capabilities. So that's an integration plan that will be completed by middle of 2020. So it's a little bit too early frankly for us to comment on that. But the teams are very focused, and we are obviously keeping a very, very close eye on that. So second part of your question around the regional footprint and our desire to maybe strengthen our footprint or capability through M&A in certain regions. So I think Anow is a perfect example of that. We have been investing a lot in China. Obviously, we are -- we have invested in new sales offices, in local partnerships. We announced an investment in our new tech center in Shanghai earlier this year. And Anow is now just another option for us and that option is really around manufacturing, not only filters but potentially later on, other types of Entegris products in China to support our local customers. And so actually that's one of the many reasons why we are very excited about Anow.

這是個好問題。所以，如果你看看我們去年完成的收購，像是 SAES Pure Gas 和 PSS，這兩項收購都做得非常好。事實上，這兩個平台在第三季都創下了季度業績紀錄，因此我對這些業務的表現非常滿意。DSC 和 MPD 的整合仍處於非常早期的階段，實際上，MPD 的整合很大程度上取決於我們如何整合 DSC、MPD 和我們自身的能力。所以這是一項整合計劃，將於 2020 年年中完成。所以坦白說，現在對此發表評論還為時過早。但各隊都非常專注，我們當然會密切關注這一點。所以，關於您問題的第二部分，即區域佈局以及我們希望透過併購來加強我們在某些​​地區的佈局或能力。所以我認為Anow就是個完美的例子。我們一直在中國進行大量投資。顯然，我們確實在投資——我們投資了新的銷售辦事處和當地合作夥伴關係。今年早些時候，我們宣布了對上海新技術中心的投資計畫。現在，Anow 對我們來說只是另一個選擇，這個選擇實際上與製造有關，不僅是過濾器，而且將來可能還會在中國製造其他類型的 Entegris 產品，以支援我們的本地客戶。所以，這其實是我們對 Anow 感到非常興奮的眾多原因之一。

Our next question comes from Paretosh Misra from Berenberg.

我們的下一個問題來自貝倫貝格銀行的帕雷托什·米斯拉。

In your CapEx-driven business, how is the book-to-bill ratio versus what it looked like 3 months ago?

在以資本支出為主導的業務中，訂單出貨比與 3 個月前相比如何？

So it's still greater than 1. And so I mean, again, we have a fair amount of visibility on that part of the business. And we expect that business to do pretty well in Q4 as well.

所以它仍然大於 1。所以我的意思是，再次強調，我們對這部分業務有相當清晰的了解。我們預計該業務在第四季也會表現良好。

Got it. Got it. And then the second -- for this -- it's more like a housekeeping question. But the acquisition that you did in Q3, Hangzhou Anow, have you provide any revenue or EBIT expectations from that?

知道了。知道了。第二個問題──就這個問題而言──更像是內部事務問題。但是，您在第三季收購的杭州安諾，您有沒有給出任何關於營收或息稅前利潤的預期？

I just mentioned earlier that the current revenue is just short of $20 million and that we're expecting that business to grow in the mid-20% on a CAGR basis over the next few years. We didn't comment on the profitability profile of that business.

我剛才提到，目前的營收略低於 2,000 萬美元，我們預計未來幾年該業務的複合年增長率將達到 20% 左右。我們沒有對該企業的獲利狀況發表評論。

Got it. And apologies for missing that. And last one -- and sorry if you've answered that one already too, but the $20 million in cost savings that you flagged in the previous earnings call, is that all completely incorporated into Q4 expectation? Or some of that might come in next year?

知道了。很抱歉我錯過了這件事。最後一個問題——如果您已經回答過這個問題，請見諒，但是您在上一次財報電話會議上提到的 2000 萬美元成本節約，是否已完全納入第四季度的預期？或者其中一些可能要到明年才能實現？

Yes. What we're saying is by the end of Q4, we'll see the full benefit of that. So we saw -- you look at our OpEx in Q3 was slightly better than expected, part of that was as a result of those cost savings. We'll see some additional parts of that in Q4, but we'll be at the full run rate as we enter Q1.

是的。我們想說的是，到第四季末，我們將看到全部益處。所以我們看到——第三季的營運支出略好於預期，部分原因是成本節約。我們將在第四季度看到其中的一些其他部分，但進入第一季時，我們將達到全速運轉。

Our next question comes from Krish Sankar from Cowen and Company.

我們的下一個問題來自 Cowen and Company 的 Krish Sankar。

I have 2 of them. Bertrand, if I look at your China revenues year-to-date, it's about $150 million compared to the last, till year-to-date there was about $145-or-so million. I was under the impression China has been spending quite a lot, so I'm kind of curious why your China-based revenues haven't grown more in line with Chinese CapEx versus (inaudible) seem doing more CapEx different, any color on that would be helpful, and I also had a follow-up.

我有兩個。伯特蘭，如果我看一下你今年迄今在中國的收入，大約是 1.5 億美元，而去年同期大約是 1.45 億美元左右。我一直以為中國投入了相當多的資金，所以我有點好奇為什麼你們在中國的收入增長沒有與中國的資本支出增長保持一致，反而（聽不清）似乎採取了不同的資本支出策略，如果能對此進行一些解釋就太好了，另外我還有一個後續問題。

Yes. So if you look at our China business on a year-to-date basis, it's actually up 3%, which I think is a good result, given the fact that the level of CapEx in China this year in '19 was significantly lower than last year. So -- and if you look at it on a sequential basis, our Microcontamination business was up. Our AMH business was up. There were a couple of very customer-specific situations for our SCEM business to be down sequentially in China. But overall, we feel pretty good about the level of activity and our performance in China, given the industry context and the geopolitical context in 2019.

是的。因此，如果從年初至今來看，我們的中國業務實際上成長了 3%，考慮到 2019 年在中國的資本支出水準遠低於去年，我認為這是一個不錯的成績。所以——如果你按順序來看，我們的微污染業務成長了。我們的AMH業務成長了。在中國，我們的 SCEM 業務出現了幾次非常特殊的客戶狀況，導致業務持續中斷。但總體而言，考慮到 2019 年的產業環境和地緣政治環境，我們對在中國的業務活動水準和業績感到相當滿意。

Got it. That's helpful, Bertrand. And then a final question on gross margin, clearly foundry is spending a lot right now and at some point in the future, memory will recover. Does your gross margin profile defer between selling to foundry and memory customers?

知道了。那很有幫助，伯特蘭。最後還有一個關於毛利率的問題，顯然代工廠現在投入巨大，未來某個時候，記憶體市場將會復甦。貴公司向晶圓代工客戶和向記憶體客戶銷售產品時，毛利率是否有差異？

There's -- actually, there's really not a big -- a much difference in margin between the 2 customer groups nor is there a difference in our margin really between unit-driven products and CapEx-driven products. I mean -- and I would say, and really in all categories, we have products that are well above the corporate average, some that are below the corporate average, obviously. But as it relates to any specific category, our margins are relatively similar.

實際上，這兩個客戶群之間的利潤率並沒有太大差異，而且以銷售為導向的產品和以資本支出為導向的產品之間的利潤率也沒有太大差異。我的意思是——而且我想說，實際上在所有類別中，我們都有遠高於公司平均水平的產品，當然也有一些低於公司平均水平的產品。但就任何特定類別而言，我們的利潤率都相對相似。

Our final question is a follow-up from Toshiya Hari from Goldman Sachs.

最後一個問題是來自高盛的 Toshiya Hari 的後續問題。

Bertrand, your North America business was up nicely, I think, up 10% year-to-date. I think if you look at just the third quarter, I think it was up in sort of the mid- to high teens. Was the node transition at the leading edge in logic kind of the key driver there on a year-over-year basis? Or was there more to it, perhaps M&A?

伯特蘭，我認為你的北美業務發展得不錯，今年迄今成長了 10%。我認為，如果只看第三季度，增幅應該在十幾到二十幾之間。邏輯技術前沿的節點過渡是否是逐年成長的關鍵驅動因素？或者，這背後還有其他原因，例如併購？

Yes. So -- right. So there's a couple of components. One is indeed the inclusion of MPD in North America revenue.

是的。沒錯。所以它由幾個部分組成。其中一個確實是將MPD納入北美收入。

But then on an organic basis, very significant growth in our Microcontamination business and that's a function of many opportunities in leading-edge fabs as well as opportunities with chemical manufacturers, supplying some of those leading-edge nodes as well, so indirectly all related to leading edge. So -- but as you said very, very pleasing to see the strength of North America sequentially and on a year-to-date basis.

但從有機成長的角度來看，我們的微污染業務實現了非常顯著的成長，這得益於尖端晶圓廠的許多機遇，以及為一些尖端節點提供化學品的製造商的機遇，因此所有這些都與尖端技術間接相關。所以——但正如你所說，看到北美市場無論從環比還是年初至今都表現強勁，真是令人非常非常高興。

That's our final question, operator. Thank you very much.

操作員，這是我們的最後一個問題。非常感謝。

This concludes today's call. Thank you for your participation. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線了。