(ENTG) 2023 Q1 法說會逐字稿

Welcome to the Entegris' First Quarter 2023 Earnings Conference Call. (Operator Instructions) I would now like to turn the call over to Bill Seymour, Vice President of Investor Relations. Sir?

歡迎參加 Entegris 2023 年第一季度收益電話會議。 （操作員說明）我現在想把電話轉給投資者關係副總裁 Bill Seymour。先生？

Good morning, everyone. Earlier today, we announced the financial results for our first quarter of 2023. 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 is contained in our most recent annual report and subsequent quarterly reports that we filed with the SEC. Please refer to the information on the disclaimer slide in the presentation.

大家，早安。今天早些時候，我們公佈了 2023 年第一季度的財務業績。在開始之前，我想提醒聽眾，我們今天的評論將包含一些前瞻性陳述。這些陳述涉及許多風險和不確定性，實際結果可能與前瞻性陳述中預測的結果存在重大差異。有關這些風險和不確定性的更多信息包含在我們向美國證券交易委員會提交的最新年度報告和隨後的季度報告中。請參閱演示文稿中免責聲明幻燈片中的信息。

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

在這次電話會議上，我們還將參考 SEC 和 G 條例定義的非 GAAP 財務措施。您可以在今天的新聞稿以及我們網站 entegris.com 的 IR 頁面上找到調節表。

On the call today are Bertrand Loy, our CEO, who's joining us from Taiwan; and Greg Graves, our CFO. With that, I'll hand the call over to Bertrand.

今天參加電話會議的是我們的首席執行官 Bertrand Loy，他從台灣加入我們；和我們的首席財務官 Greg Graves。有了這個，我會把電話交給伯特蘭。

Thank you, Bill. Good morning to all. I will start by saying that I am very pleased with our performance in the first quarter, especially in light of the dynamic semi market backdrop.

謝謝你，比爾。大家早上好。我首先要說的是，我對我們第一季度的表現感到非常滿意，尤其是在充滿活力的半導體市場背景下。

During the quarter, we delivered strong results above our guidance on all fronts. Sales were $922 million, EBITDA margins were 27%, and non-GAAP EPS was $0.65.

在本季度，我們在各個方面都取得了超出我們指導的強勁業績。銷售額為 9.22 億美元，EBITDA 利潤率為 27%，非 GAAP 每股收益為 0.65 美元。

Let me make a few additional comments on our financial performance. While sales were down sequentially for us in the quarter, we believe we significantly outperformed the market. This outperformance was driven in large part by our strong position at the leading-edge technology nodes and also from the impact of easing supply chain constraints, particularly for our AMH and MC divisions.

讓我對我們的財務表現做一些額外的評論。雖然本季度我們的銷售額環比下降，但我們相信我們的表現明顯優於市場。這種出色的表現在很大程度上是由於我們在前沿技術節點的強勢地位以及供應鏈限制放鬆的影響，特別是對於我們的 AMH 和 MC 部門。

In terms of profitability, gross margins were up sequentially, and EBITDA margins were essentially flat.

盈利能力方面，毛利率環比上升，EBITDA 利潤率基本持平。

Next, I would like to highlight a few very important items that the team is focused on. First, on the CMC integration. The integration is proceeding very well. We are on track to complete the migration to a common ERP platform by the end of the third quarter, which also puts us on track to achieve the $75 million run rate cost synergy target by the fourth quarter as originally planned.

接下來，我想強調團隊關注的幾個非常重要的項目。首先，關於CMC整合。整合進展順利。我們有望在第三季度末完成向通用 ERP 平台的遷移，這也使我們有望按原計劃在第四季度實現 7500 萬美元的運營成本協同目標。

As you know, debt pay down is also a high priority for us and divestitures of noncore assets are a significant lever we can use to reduce our debt. As you've seen so far this year, we have entered into agreements for the sale of 2 businesses for a total of $835 million.

如您所知，償還債務也是我們的重中之重，剝離非核心資產是我們可以用來減少債務的重要槓桿。正如您今年到目前為止看到的那樣，我們已經簽訂了出售 2 家企業的協議，總價為 8.35 億美元。

The first divestiture was QED, which was part of CMC. We sold QED for $135 million. That sale closed in Q1 and in April, we used the proceeds to pay down the bridge loan. And yesterday, we announced an agreement to sell the Electronic Chemicals business, which was also a part of CMC to Fujifilm for $700 million at a low teens multiple. We expect the EC sale to close by the end of 2023. We think Fujifilm will be a great owner for the Electronic Chemicals business. They will be well positioned to support the growing market demand for its high-purity process chemicals in North America, Europe and beyond, with the high level of quality and service that fab customers require. The proceeds for the sale of EC, when realized, will also be used for debt pay down.

第一次剝離是 QED，它是 CMC 的一部分。我們以 1.35 億美元的價格出售了 QED。該銷售於第一季度結束，4 月份，我們用所得款項償還了過橋貸款。昨天，我們宣布了一項協議，以 7 億美元的價格將電子化學品業務出售給 Fujifilm，該業務也是 CMC 的一部分。我們預計 EC 出售將於 2023 年底完成。我們認為富士膠片將成為電子化學品業務的重要所有者。他們將有能力支持北美、歐洲及其他地區對其高純度工藝化學品不斷增長的市場需求，並提供晶圓廠客戶所需的高水平質量和服務。出售 EC 的收益在實現後也將用於償還債務。

Another priority for the team has been aligning our cost structure to the current industry environment. To that end, we have taken several actions to lower costs, including headcount reductions, and a few small site closures. These actions, in addition to the CMC synergies, will help reduce our cost basis.

該團隊的另一個優先事項是使我們的成本結構與當前的行業環境保持一致。為此，我們採取了幾項措施來降低成本，包括裁員和關閉一些小型站點。這些行動，加上 CMC 的協同作用，將有助於降低我們的成本基礎。

While effectively managing our cost structure is important, we also continue to make investments that are critical to our long-term growth and success. To that end, we have maintained our significant R&D investments with particular focus on differentiated and high-growth products like advanced deposition materials, CMP slurries and liquid filtration.

雖然有效地管理我們的成本結構很重要，但我們也繼續進行對我們的長期增長和成功至關重要的投資。為此，我們一直保持著重大的研發投資，特別關注差異化和高增長的產品，如高級沉積材料、CMP 漿料和液體過濾。

Also critical to our long-term growth are our announced capacity expansions. Our new manufacturing facility in Taiwan is approaching completion with initial production expected to begin in the third quarter. I was proud to participate in the opening ceremonies of this facility in Kaohsiung yesterday. The site will be a showcase of Entegris' commitment not only as a technology leader, but also as a world-class manufacturer.

對我們的長期增長也至關重要的是我們宣布的產能擴張。我們在台灣的新製造工廠即將完工，預計將於第三季度開始投產。我有幸參加了昨天在高雄舉行的這個設施的開幕式。該網站將展示 Entegris 不僅作為技術領導者，而且作為世界級製造商的承諾。

We believe these attributes represent a real competitive advantage as the technology road maps of our customers become increasingly challenging and require incredibly precise and stable manufacturing capabilities delivered from their most trusted suppliers.

我們相信這些屬性代表了真正的競爭優勢，因為我們客戶的技術路線圖變得越來越具有挑戰性，並且需要他們最信任的供應商提供極其精確和穩定的製造能力。

We also expect to break ground soon on our new facilities -- our new manufacturing center in Colorado Springs, which is targeted to begin initial commercial operations in early 2025. Both the Taiwan and Colorado Springs facilities are critical to address our long-term capacity needs and both have excellent financial return profiles.

我們還希望我們的新設施很快破土動工——我們在科羅拉多斯普林斯的新製造中心，目標是在 2025 年初開始初步商業運營。台灣和科羅拉多斯普林斯的設施對於滿足我們的長期產能需求至關重要並且兩者都具有出色的財務回報率。

Looking at the rest of 2023. Forecasting the industry this year continues to be challenging. However, based on discussions with our customers and using third-party estimates, we expect that semiconductor fab utilization will likely bottom in Q2. For the full year 2023, we now expect the market will be down in the mid-teens or a bit more than the down 13% we cited on the last earnings call.

展望 2023 年剩餘時間。預測今年的行業仍然充滿挑戰。然而，根據與我們客戶的討論並使用第三方估計，我們預計半導體工廠的利用率可能會在第二季度觸底。對於 2023 年全年，我們現在預計市場將下跌 15% 以上，或略高於我們在上次財報電話會議上提到的 13% 的跌幅。

Given our strong position in the new technology nodes, we now expect to outperform the market on a pro forma basis at or slightly above the high end of the 3 to 6 points outperformance range target we discussed in our recent Analyst Day. Putting it all together, we continue to expect our pro forma sales in 2023 to be down on percentage basis in the high single digits.

鑑於我們在新技術節點中的強勢地位，我們現在預計在備考基礎上跑贏市場，達到或略高於我們在最近的分析師日討論的 3 至 6 點跑贏範圍目標的高端。綜上所述，我們繼續預計我們 2023 年的預估銷售額將以高個位數的百分比下降。

Wrapping up our outlook for 2023. We also continue to expect EBITDA will be approximately 27% to 28% of revenue for the year. And we expect full year 2023 non-GAAP EPS to exceed $2.30 per share.

總結我們對 2023 年的展望。我們還繼續預計 EBITDA 將佔全年收入的 27% 至 28% 左右。我們預計 2023 年全年非 GAAP 每股收益將超過 2.30 美元。

Our approach this year is playing both defense and offense, being mindful of cost, but also preparing to quickly reaccelerate when signs of an improving market emerge. The semiconductor industry remains poised for significant long-term growth on the way to $1 trillion by 2030, driven by exciting catalysts such as AI and EVs, to name just a few.

我們今年的做法是攻守兼備，注意成本，同時準備在市場出現好轉跡象時迅速重新加速。在人工智能和電動汽車等令人興奮的催化劑的推動下，半導體行業仍有望實現顯著的長期增長，到 2030 年將達到 1 萬億美元，僅舉幾例。

In addition, the pace of node transitions continue to be on track and device architectures are becoming much more complex trends, which ultimately play to our strength.

此外，節點過渡的步伐繼續步入正軌，設備架構正變得越來越複雜，這最終會發揮我們的優勢。

Entegris' breadth of capabilities in material science and materials purity will enable us to offer unique solutions to help our customers improve device performance and shorten their time to yield. These trends and our increasingly mission-critical solutions are translating into rapidly expanding content per wafer and market share growth for Entegris.

Entegris 在材料科學和材料純度方面的廣泛能力將使我們能夠提供獨特的解決方案，幫助我們的客戶提高設備性能並縮短他們的產量時間。這些趨勢和我們日益關鍵的任務解決方案正在轉化為 Entegris 快速擴展的每晶圓內容和市場份額增長。

Finally, I want to take a moment to thank our customers for the trust and confidence they place in Entegris. And I also want to thank the Entegris team for displaying strong adaptability and a keen focus on our customers in a challenging industry environment.

最後，我想花點時間感謝我們的客戶對 Entegris 的信任和信心。我還要感謝 Entegris 團隊在充滿挑戰的行業環境中表現出強大的適應能力和對客戶的高度關注。

Before I hand over to Greg, I want to welcome Linda LaGorga to our team as our new CFO. Linda will be officially joining us next week, and we cannot wait to have her on board. But today, I want to take a minute to again thank Greg for his immense contributions to Entegris and for being such a great partner to me and the rest of the leadership team for all these years. So now let me turn the call to Greg. Greg?

在我移交給格雷格之前，我想歡迎琳達·拉戈加 (Linda LaGorga) 加入我們的團隊，成為我們的新首席財務官。琳達將於下周正式加入我們，我們迫不及待地想讓她加入。但今天，我想再次感謝 Greg 對 Entegris 的巨大貢獻，感謝他多年來一直是我和領導團隊其他成員的好夥伴。所以現在讓我把電話轉給格雷格。格雷格？

Good morning, everyone, and thank you, Bertrand. On to our results for Q1. Our sales in the first quarter were $922 million, down 4% year-over-year on a pro forma basis and down 3% sequentially. Sales were up 42% year-over-year on reported basis. FX negatively impacted revenue by $18 million year-over-year on a pro forma basis and positively impacted revenue by $12 million sequentially.

大家早上好，謝謝 Bertrand。關於我們第一季度的結果。我們第一季度的銷售額為 9.22 億美元，預估同比下降 4%，環比下降 3%。根據報告，銷售額同比增長 42%。在備考基礎上，外匯對收入的同比負面影響為 1800 萬美元，對收入的連續影響為 1200 萬美元。

GAAP gross margin was 43.5% and non-GAAP gross margin was 44.3% in Q1, above our guidance of 43%. The sequential strength in non-GAAP gross margin was driven by favorable FX rates and product mix. We expect gross margin to be 42% to 43% in Q2 both on a GAAP and non-GAAP basis. The modestly lower margin reflects less favorable FX trends and the impact of lower volume.

第一季度 GAAP 毛利率為 43.5%，非 GAAP 毛利率為 44.3%，高於我們 43% 的指引。非 GAAP 毛利率的環比增長受到有利的匯率和產品組合的推動。我們預計第二季度的毛利率在 GAAP 和非 GAAP 基礎上均為 42% 至 43%。利潤率的小幅下降反映了不太有利的外匯趨勢和較低交易量的影響。

GAAP operating expenses were $388 million in Q1. This includes $184 million of non-GAAP items, specifically $89 million of goodwill impairment related to the sale of the Electronic Chemicals business, $58 million of amortization of intangible assets, $17 million of integration costs and $21 million of other net costs. Non-GAAP operating expenses in Q1 were $204 million within our guidance range. We expect GAAP operating expenses to be approximately $262 million to $267 million in Q2 and non-GAAP operating expenses to be approximately $185 million to $190 million in Q2.

第一季度的 GAAP 運營費用為 3.88 億美元。這包括 1.84 億美元的非 GAAP 項目，特別是與電子化學品業務出售相關的商譽減值 8900 萬美元、無形資產攤銷 5800 萬美元、整合成本 1700 萬美元和其他淨成本 2100 萬美元。第一季度的非 GAAP 運營費用在我們的指導範圍內為 2.04 億美元。我們預計第二季度 GAAP 運營費用約為 2.62 億美元至 2.67 億美元，第二季度非 GAAP 運營費用約為 1.85 億美元至 1.9 億美元。

The sequential decrease in non-GAAP OpEx from Q1 to Q2 is primarily driven by a decrease in noncash equity compensation expense, which is higher in Q1 than other quarters.

非 GAAP 運營支出從第一季度到第二季度的環比下降主要是由於非現金股權補償費用的減少，該費用在第一季度高於其他季度。

Q1 GAAP operating income was $13 million and non-GAAP operating income was $205 million. Adjusted EBITDA in Q1 was $252 million or 27.3% of revenue and was above our guidance.

第一季度 GAAP 營業收入為 1300 萬美元，非 GAAP 營業收入為 2.05 億美元。第一季度調整後的 EBITDA 為 2.52 億美元，佔收入的 27.3%，高於我們的指導。

Looking below the line, the GAAP tax rate in the quarter was negative as we had a pretax loss. The non-GAAP tax rate was approximately 17%. We expect the non-GAAP tax rate for the full year 2023 will also be approximately 17%. Q1 GAAP diluted EPS was a negative $0.59 per share. The negative GAAP EPS was driven primarily by the goodwill impairment taken in Q1 related to the Electronic Chemicals sale. Non-GAAP EPS was $0.65 per share, above our guidance.

在線下看，本季度的 GAAP 稅率為負，因為我們有稅前虧損。非 GAAP 稅率約為 17%。我們預計 2023 年全年的非美國通用會計準則稅率也將約為 17%。第一季度 GAAP 稀釋每股收益為負 0.59 美元。負的 GAAP 每股收益主要是由於第一季度與電子化學品銷售相關的商譽減值所致。非 GAAP 每股收益為 0.65 美元，高於我們的指導。

Turning to our performance by division. For ease of analysis, the year-on-year comparisons I'm referencing here are on a pro forma basis for the SCEM and APS divisions. Q1 sales of $269 million for MC were up 1% from last year and down 5% sequentially. The sequential sales decline was driven primarily by lower sales of our CapEx-driven solutions in MC. Adjusted operating margin for MC was approximately 37% for the quarter, flat year-on-year and down slightly sequentially. The sequential margin decrease was driven primarily by lower volumes.

轉向我們按部門劃分的表現。為了便於分析，我在這裡引用的同比比較是基於 SCEM 和 APS 部門的備考。 MC 第一季度的銷售額為 2.69 億美元，比去年增長 1%，環比下降 5%。環比銷售額下降主要是由於我們在 MC 中由資本支出驅動的解決方案的銷售額下降。本季度 MC 的調整後營業利潤率約為 37%，同比持平，環比略有下降。連續利潤率下降主要是由於銷量下降。

Q1 sales of $219 million for AMH were up 10% versus last year and up 2% sequentially. Sales growth year-over-year was driven by strength in wafer and fluid handling solutions. Adjusted operating margin for AMH was over 22%, down year-over-year and up slightly sequentially. The modest year-over-year margin decline was primarily driven by higher OpEx investments.

AMH 第一季度銷售額為 2.19 億美元，比去年增長 10%，環比增長 2%。銷售額的同比增長是由晶圓和流體處理解決方案的實力推動的。 AMH 的調整後營業利潤率超過 22%，同比下降，環比略有上升。利潤率同比溫和下降主要是由於更高的運營支出投資。

Q1 sales of $198 million for SCEM were down 6% year-over-year and down 3% sequentially. The sales decline was driven primarily by the impact of the sale of QED in mid-Q1. Adjusted operating margin for SCEM was over 11% for the quarter, down year-over-year, but up sequentially as expected. The sequential margin increase was driven by lower OpEx spend, improved execution and favorable FX.

SCEM 第一季度銷售額為 1.98 億美元，同比下降 6%，環比下降 3%。銷售額下降主要是受到第一季度中期 QED 銷售的影響。本季度 SCEM 的調整後營業利潤率超過 11%，同比下降，但如預期的那樣連續上升。利潤率的環比增長是由較低的運營支出、改進的執行力和有利的外匯推動的。

Q1 sales of $250 million for APS were down 16% year-over-year and down just 1% sequentially. The sales decline in APS was driven by lower sales of CMP consumables, except for SiC slurries, which had significant growth. Adjusted operating margin for APS was approximately 23% for the quarter. Operating margin was down year-on-year but was up sequentially despite the sequential sales decline. The year-over-year margin decline was primarily driven by the lower volumes. The sequential margin improvement was the result of solid cost controls.

APS 第一季度銷售額為 2.5 億美元，同比下降 16%，環比僅下降 1%。 APS 銷售額下降的原因是 CMP 耗材銷售額下降，但 SiC 漿料增長顯著。本季度 APS 的調整後營業利潤率約為 23%。營業利潤率同比下降，但儘管銷售額環比下降，但環比上升。利潤率同比下降主要是由於銷量下降。連續的利潤率改善是可靠的成本控制的結果。

Moving on to cash flow and the balance sheet. First quarter cash flow from operations was $152 million, and free cash flow was $18 million. It is worth noting that Q1 is typically the lowest free cash flow quarter of the year as this is when we pay out variable compensation related to the prior year.

繼續討論現金流量和資產負債表。第一季度運營現金流為 1.52 億美元，自由現金流為 1800 萬美元。值得注意的是，第一季度通常是一年中自由現金流量最低的季度，因為這是我們支付與上一年相關的可變薪酬的時間。

CapEx for the quarter was $134 million. We continue to expect to spend approximately $500 million in total CapEx in 2023, a significant portion of which will be for our new facilities in Taiwan and Colorado Springs. We also continue to expect CapEx will decline to a longer-term run rate of approximately 10% of sales starting in 2024.

本季度的資本支出為 1.34 億美元。我們繼續預計 2023 年的資本支出總額約為 5 億美元，其中很大一部分將用於我們在台灣和科羅拉多斯普林斯的新設施。我們還繼續預計，從 2024 年開始，資本支出將下降至銷售額的 10% 左右的長期運行率。

As we have said, we are highly focused on improving our cash flow and especially inventory turns. While inventory increased in Q1, our inventories have started to decline, and we expect the declines to accelerate as the year progresses.

正如我們所說，我們高度關注改善現金流，尤其是庫存周轉率。雖然第一季度庫存增加，但我們的庫存已經開始下降，我們預計隨著時間的推移下降速度會加快。

A bit on our capital structure. As Bertrand referenced, in April, we paid off the balance of a short-term high-interest loan associated with the funding of the CMC transaction. Excluding that $135 million, at the end of Q1, our gross debt was $5.8 billion, and our net debt was $5.2 billion. This equates to a gross leverage ratio of 5x and a net leverage ratio of 4.6x pro forma for the announced cost synergies. As a reminder, going forward, after taking into account the hedge we put in place, our variable rate debt is expected to be a bit more than 10% of total debt outstanding. The blended interest rate on the debt portfolio is approximately 5.5%.

關於我們的資本結構。正如 Bertrand 所提到的，在 4 月份，我們還清了與 CMC 交易資金相關的短期高息貸款餘額。不包括那 1.35 億美元，在第一季度末，我們的總債務為 58 億美元，淨債務為 52 億美元。對於已公佈的成本協同效應，這相當於 5 倍的總槓桿率和 4.6 倍的淨槓桿率。提醒一下，展望未來，在考慮到我們實施的對沖之後，我們的可變利率債務預計將略高於未償債務總額的 10%。債務組合的混合利率約為 5.5%。

As Bertrand said, we are very focused on debt pay down and deleveraging. On that note, we expect to steadily lower our leverage toward our target of 3.5x gross leverage by the end of 2024.

正如 Bertrand 所說，我們非常關注債務償還和去槓桿化。就此而言，我們預計到 2024 年底將穩步降低杠桿率，以實現 3.5 倍總槓桿率的目標。

Our liquidity position continues to be solid. As of the end of Q1, we had over $700 million of cash on hand, $135 million of which was used to repay the short term in April and well over $1 billion of total liquidity, including our $575 million undrawn revolving credit facility.

我們的流動性狀況繼續穩固。截至第一季度末，我們手頭有超過 7 億美元的現金，其中 1.35 億美元用於償還 4 月份的短期貸款，流動資金總額超過 10 億美元，其中包括 5.75 億美元的未提取循環信貸額度。

Now for our Q2 outlook. We expect sales to range from $870 million to $900 million. We expect the EBITDA margin to be approximately 27% to 28%. We expect GAAP EPS to be $0.09 to $0.14 per share and non-GAAP EPS to be $0.53 to $0.58 per share.

現在是我們的第二季度展望。我們預計銷售額將在 8.7 億美元至 9 億美元之間。我們預計 EBITDA 利潤率約為 27% 至 28%。我們預計 GAAP 每股收益為 0.09 美元至 0.14 美元，非 GAAP 每股收益為 0.53 美元至 0.58 美元。

A few additional modeling items. We expect interest expense of approximately $84 million per quarter for the rest of 2023. Depreciation is expected to be over $55 million in Q2, up from $47 million in Q1 and increasing to over $60 million in Q4. And to be clear, all the guidance we provided today, both for Q2 and for the full year 2023 includes the Electronic Chemicals business.

一些額外的建模項目。我們預計 2023 年剩餘時間內每季度的利息支出約為 8400 萬美元。第二季度的折舊預計將超過 5500 萬美元，高於第一季度的 4700 萬美元，並在第四季度增加到超過 6000 萬美元。需要明確的是，我們今天提供的所有指導，包括第二季度和 2023 年全年的指導，都包括電子化學品業務。

In closing, I feel very confident as I am preparing to step down that Entegris has never been better positioned. The semi market, even given the challenging near-term environment, is much more diverse than it used to be and has many drivers for attractive long-term secular growth. Our model is 80% unit-driven and as a result, is more resilient than it used to be. We have increased opportunities to grow our content per wafer and continue to outperform the market.

最後，當我準備卸任時，我感到非常自信，因為 Entegris 處於前所未有的有利地位。即使考慮到近期環境充滿挑戰，半導體市場也比過去更加多樣化，並且有許多驅動因素可以實現有吸引力的長期長期增長。我們的模型 80% 是單位驅動的，因此比以前更有彈性。我們有更多機會增加每片晶圓的含量並繼續跑贏市場。

Our model has significant variable cost, which helps us in a down year. And while we do have significant debt, the debt structure is rock solid. It's approximately 90% fixed rate, there are no meaningful covenants and no meaningful maturities until 2028. We are, of course, committed to paying down the debt and have options to do that, including using the $700 million of proceeds from the EC sale, post close.

我們的模型具有顯著的可變成本，這有助於我們度過低迷的一年。雖然我們確實有大量債務，但債務結構堅如磐石。大約是 90% 的固定利率，沒有有意義的契約，也沒有有意義的到期日，直到 2028 年。我們當然承諾償還債務，並且可以選擇這樣做，包括使用 EC 出售的 7 億美元收益，關閉後。

In closing, I want to thank my team for all of the great support over the years. And finally, I want to welcome Linda to the team. She is the right person at the right time.

最後，我要感謝我的團隊多年來的大力支持。最後，我要歡迎 Linda 加入團隊。她是對的時間對的人。

Operator, we'll now open up for questions.

接線員，我們現在開始提問。

Thank you. (Operator Instructions) Our first question will come from Toshiya Hari with Goldman Sachs.

謝謝。 （操作員說明）我們的第一個問題將來自高盛的 Toshiya Hari。

Bertrand, maybe first one for you. I guess a multipart question on how to think about revenue going forward. You talked about the market being down in the mid-teens as kind of your outlook. I was hoping you could differentiate between how you're thinking about wafer starts, WFE and construction CapEx. And you mentioned that you expect the market to trough in Q2. Is that a statement for all 3 buckets of your business, if you will?

Bertrand，也許是第一個給你的。我想這是一個關於如何考慮未來收入的多部分問題。你談到市場在十幾歲中期下跌是你的前景。我希望您能區分您對晶圓啟動、WFE 和建設資本支出的看法。你提到你預計市場將在第二季度觸底。如果您願意，這是對您業務的所有 3 個方面的陳述嗎？

And then my second part would be, some of the drivers behind the outperformance. You talked about leading-edge customers, no transitions and also easing supply constraints. I was hoping you could expand on those two.

然後我的第二部分是，表現出色背後的一些驅動因素。你談到了領先的客戶、沒有過渡以及緩解供應限制。我希望你能擴展這兩個。

A lot of questions here, Toshiya. So I will try to remember them all, but don't hesitate to come back online if I have forgotten anything of significance. Let's start with the annual guidance. A little bit more detail to unpack my statement. MSI, we expect wafer starts to be down in the mid-teens. So a little bit worse than last time we spoke. Our forecast right now for CapEx is down near 20%, so pretty much in line with our views about 3 months ago. So that gives you the blend of down mid-teens for the industry.

Toshiya，這裡有很多問題。所以我會盡量記住它們，但如果我忘記了任何重要的東西，請不要猶豫，回來上網。讓我們從年度指南開始。解開我的陳述的更多細節。 MSI，我們預計晶圓將在十幾歲左右開始下降。所以比我們上次談話要差一點。我們目前對資本支出的預測下降了近 20%，這與我們大約 3 個月前的看法基本一致。因此，這為您提供了行業中十幾歲的混合體。

The way to think about the year at this point is that, again, we expect MSI to bottom. We believe that it's going to be true in advanced logic and memory. And we expect some recovery, some sequential growth in the subsequent quarters for the balance of the year. So that's the way to think about the year. And if you do the math, you will see that it gives you a rate of outperformance of about 6 to 7 points and an overall annual growth rate of about down in the high single digit.

在這一點上思考這一年的方式是，我們再次預計 MSI 將觸底。我們相信在高級邏輯和內存中它會成為現實。我們預計在今年餘下的時間裡，接下來的幾個季度會出現一些復甦，一些環比增長。這就是思考這一年的方式。如果你計算一下，你會發現它給你帶來了大約 6 到 7 個點的跑贏率，並且總體年增長率大約下降到高個位數。

So we talked about the reasons for that outperformance. So it's continued strong level of demand for some of our strategic products, in particular, liquid filters, which are in very high demand. The reasons for that are unchanged. And I believe clear to the audience, the need for higher levels of purity is unabated in this industry. Purity is very important at the leading edge to achieve optimum yields. And it's increasingly important for mainstream fabs to achieve long-term reliability of the chips.

所以我們討論了表現出色的原因。因此，對我們的一些戰略產品的需求持續強勁，特別是需求量非常大的液體過濾器。原因沒有改變。我相信觀眾很清楚，這個行業對更高純度的需求有增無減。純度對於前沿技術實現最佳產量非常重要。對於主流晶圓廠來說，實現芯片的長期可靠性變得越來越重要。

Another factor for the outperformance is, again, the easing of a number of supply chain constraints. You can see evidence of that, in particular, in MC and AMH. You recall last year, we talked about some new internal capacity coming online in the back half of the year. So we've been able to ramp up some of those new equipments, in particular, in liquid filtration and fluid handling. And then we are seeing also some new capacity coming online with some critical suppliers of resin in particular. So I think those are the various factors behind the performance in Q1 and how we expect the year to play out.

表現出色的另一個因素同樣是一些供應鏈限制的放鬆。您可以在 MC 和 AMH 中看到這方面的證據。你還記得去年，我們談到了一些新的內部能力將在今年下半年上線。因此，我們已經能夠增加其中一些新設備，特別是在液體過濾和流體處理方面。然後我們還看到一些新產能上線，特別是一些重要的樹脂供應商。所以我認為這些是第一季度業績背後的各種因素以及我們對這一年的預期。

That's very helpful. And then as my follow-up, I guess a couple of questions on the cost side. You guys talked about some headcount reductions, some small site closures. You're guiding Q2 OpEx to $185 million to $190 million. Should we -- as we think about the second half run rate from an OpEx perspective, is the $185 million to $190 million kind of the new base that we should be working with? Or could there be further reductions given some of the initiatives going on today and perhaps synergies with CMC?

這很有幫助。然後作為我的後續行動，我猜想有幾個關於成本方面的問題。你們談到了一些裁員，一些小站點關閉。您將第二季度運營支出引導至 1.85 億美元至 1.9 億美元。當我們從 OpEx 的角度考慮下半年的運行率時，我們是否應該使用 1.85 億美元至 1.9 億美元的新基數？或者考慮到今天正在進行的一些舉措以及可能與 CMC 的協同作用，是否可以進一步減少？

And then specifically on SCEM, margins were up sequentially from Q4 to Q1. But they remain pretty low relative to where you were a year ago, 1.5 years ago. So what needs to happen within SCEM for your margins to perhaps normalize high?

然後特別是在 SCEM 上，利潤率從第四季度到第一季度依次上升。但與一年前（1.5 年前）相比，它們仍然很低。那麼，在 SCEM 內部需要做些什麼才能使您的利潤率正常化？

Okay. Yes. So I'll go ahead and take that, Toshiya. So in the -- so OpEx, you should think about that $185 million to $190 million as sort of the run rate as we go through the year. If you think about that on a pro forma basis, it's about $10 million higher than where we were last year in the second quarter. But if you unpack that, it's all ER&D. And as Bertrand mentioned, and we're sort of driving with one foot on the gas, one foot on the brake and trying to watch the cost around the SG&A side of the house and the ER&D side of the house, but we do want to make sure we're continuing to invest for the long term.

好的。是的。所以我會繼續接受那個，Toshiya。所以在 - 所以 OpEx 中，你應該考慮 1.85 億美元到 1.9 億美元作為我們全年的運行率。如果你在備考的基礎上考慮這一點，它比我們去年第二季度的水平高出約 1000 萬美元。但如果你打開它，它就是 ER&D。正如 Bertrand 提到的，我們有點像一隻腳踩油門，一隻腳踩剎車，並試圖觀察房屋的 SG&A 側和 ER&D 側的成本，但我們確實想要確保我們繼續進行長期投資。

As it relates to the SCEM division, as you highlighted, we did have slight improvement in the operating margins there. I think as we think about the balance of the year, there are a couple of parts of that business where the volumes are very low, and they have relatively high fixed cost. So we need to see higher volumes in those portions of the business.

由於它與 SCEM 部門有關，正如您強調的那樣，我們確實在該部門的營業利潤率方面略有改善。我認為當我們考慮今年的餘額時，該業務的幾個部分的數量非常低，而且固定成本相對較高。因此，我們需要在業務的這些部分看到更高的數量。

And I would just say, in general, the margin is going to improve. It's primarily a volume-related issue with the exception of those 2 -- I talked about 2 buckets where we've got very low volumes relative to historical standards. And those would be non -- those aren't core areas per se.

我只想說，總的來說，利潤率將會提高。這主要是一個與體積相關的問題，除了那 2 個——我談到了 2 個桶，相對於歷史標準，我們的體積非常低。那些將是非 - 那些本身不是核心領域。

Got it. And congrats again on your retirement.

知道了。再次祝賀你退休。

Our next question will come from Kieran De Brun with Mizuho Group.

我們的下一個問題將來自瑞穗集團的 Kieran De Brun。

Congratulations on the good quarter. And again, congratulations, Greg. I was wondering, in APS specifically, I mean, it seems like you're seeing really good demand for the silicon carbide slurries. Maybe you can parse out what's driving that strong demand, like how you're thinking about that business going forward? And then your outlook for the consumable portion of the business like throughout the remainder of the year and how you expect that to trend? I mean you covered it, I guess, more broadly in terms of where the total business is trending, but if you can just dial down a little bit more into APS, that would be helpful.

祝賀這個好季度。再次祝賀你，格雷格。我想知道，特別是在 APS 中，我的意思是，您似乎看到了對碳化矽漿料的非常好的需求。也許你可以分析出是什麼推動了這種強勁的需求，比如你是如何考慮這項業務的發展的？然後您對今年剩餘時間的業務消耗品部分的前景以及您期望的趨勢如何？我的意思是你涵蓋了它，我想，從整體業務趨勢的角度來看更廣泛，但如果你能稍微深入了解 APS，那會很有幫助。

Yes. So we like talking about the SiC slurry business because, first of all, there are a number of very significant investments taking place in this particular segment. Many customers are investing massively to build the new capacity. And then the other reason we like to talk about it is that our market position in these particular applications is very, very strong, both for slurries and for pads as well, by the way.

是的。所以我們喜歡談論 SiC 漿料業務，因為首先，在這個特定領域有許多非常重要的投資。許多客戶正在大量投資以建設新產能。然後，我們喜歡談論它的另一個原因是，順便說一下，我們在這些特定應用中的市場地位非常非常強大，無論是漿料還是墊。

So it's small today, but we expect this part of the business to grow very rapidly. We saw that in Q1. We expect to see that, as Greg mentioned, through the balance of the year. So that part of the business will be expanding and will be a little bit swimming against the current here.

所以今天它很小，但我們預計這部分業務會快速增長。我們在第一季度看到了這一點。正如 Greg 提到的那樣，我們希望在今年餘下時間看到這一點。所以這部分業務將會擴大，並且會有點逆流而上。

For the rest of the consumable business, I think, again, we expect that part of the business to be down sequentially in Q2. That's largely a function of further slowdown in wafer dots, especially in advanced logic. And then we expect a steady but modest recovery in the back half of the year.

對於其餘的消耗品業務，我再次認為，我們預計這部分業務將在第二季度依次下降。這在很大程度上是晶圓點進一步放緩的結果，尤其是在高級邏輯領域。然後我們預計今年下半年將出現穩定但溫和的複蘇。

As I mentioned in our previous earnings call, we continue to expect our liquid filtration product lines to do the best across the portfolio. And as I was just saying as an answer to the previous question, it's largely a function of the growing importance of materials purity for our customers, and therefore, the growing importance of the solutions we provide for them. So that's the way to think about consumable revenue for the balance of the year.

正如我在之前的財報電話會議中提到的那樣，我們繼續期望我們的液體過濾產品線在整個產品組合中做到最好。正如我剛剛在回答上一個問題時所說的那樣，這在很大程度上是材料純度對我們客戶的重要性越來越大的一個函數，因此，我們為他們提供的解決方案的重要性也越來越大。所以這就是考慮今年剩餘時間的消費品收入的方式。

Great. And then maybe just a really quick follow-up. The Taiwan facility seems to be on track or even ahead of schedule. I mean how do we think about the contributions as you ramp up that facility in the back half of the year? And then, I know it's early for 2024, but any initial thoughts on how to kind of think about that business and the additions to your portfolio?

偉大的。然後可能只是一個非常快速的跟進。台灣工廠似乎步入正軌，甚至提前完成。我的意思是，當您在今年下半年擴大該設施時，我們如何考慮捐款？然後，我知道 2024 年還早，但是關於如何考慮該業務和增加您的投資組合的任何初步想法？

Yes. So yes, you're right. I mean this facility is coming online. In fact, on plan. But that in itself is quite an accomplishment given the fact that we announced the investment late 2020 and this massive construction took place during a global pandemic. So the fact that we are able to hit the time line and to do all of that within budget is quite an accomplishment. And frankly, that's why it was important for me to travel to Taiwan to recognize the team. And frankly, I wouldn't miss the opening and an opportunity to interact with a lot of our major customers who attended the opening.

是的。所以是的，你是對的。我的意思是這個設施即將上線。事實上，在計劃中。但考慮到我們在 2020 年底宣布投資並且這一大規模建設發生在全球大流行期間，這本身就是一項相當大的成就。因此，我們能夠按時完成並在預算範圍內完成所有這些工作這一事實是一項了不起的成就。坦率地說，這就是為什麼去台灣認識這支球隊對我來說很重要。坦率地說，我不會錯過開幕式和與參加開幕式的許多主要客戶互動的機會。

So this is going to be a great showcase for Entegris. Not only are we adding new capacity, but we are also investing in the most advanced manufacturing site when it comes to liquid filters, when it comes to high-purity drums, when it comes to low-K and high-K dielectric materials. So again, exciting time, exciting week for us, obviously, between reporting strong results and opening this very important facility.

所以這將是 Entegris 的一個很好的展示。我們不僅增加了新產能，而且還在液體過濾器、高純度鼓、低 K 和高 K 介電材料方面投資於最先進的製造基地。所以，再次，激動人心的時刻，對我們來說激動人心的一周，顯然，在報告強勁的結果和開設這個非常重要的設施之間。

When it comes to its contribution, as we said many times, I mean, this year, it's going to be a little bit of a drag to margin in the back half of the year. We are still in the middle of internal and customer qualifications. We expect the first shipments to customers -- so billable shipments by Q3, but it will be modest. And then the ramp really will take place in 2024. And I would expect to be -- maybe reaching full capacity sometime in 2025.

談到它的貢獻，正如我們多次說過的那樣，我的意思是，今年下半年的利潤率會有所拖累。我們仍處於內部和客戶資格的中間。我們預計第一批貨物將交付給客戶——因此在第三季度之前可以計費發貨，但數量會很少。然後斜坡真的會在 2024 年發生。我預計可能會在 2025 年的某個時候達到滿負荷。

Our next question will come from Sidney Ho with Deutsche Bank.

我們的下一個問題將來自德意志銀行的 Sidney Ho。

Thanks for the update on the full year guidance. Do you still expect second half revenue to be slightly skewed towards the second half? I guess revenue could slightly skewed towards the second half of the year. I think last quarter, you talked about 3-nanometer ramp being a big drag in the second half. Has there been any changes to your expectations about these nodal transitions for 3 nanometers as well as on the memory side as well?

感謝您更新全年指南。您是否仍預計下半年收入會略微偏向下半年？我猜收入可能會略微偏向今年下半年。我想上個季度，你談到 3 納米斜坡是下半年的一大拖累。您對 3 納米以及內存方面的這些節點過渡的期望是否有任何變化？

Yes, Sidney. So right now, I think on balance, I would say that second half will be essentially flat with the first half. So we expect, as I mentioned earlier, Q2 revenue to be the lowest point this year for us. But after that, we expect the sequential increase every quarter to be relatively modest through the balance of the year. And that's going to be a function of recovery in MSI and also the benefits of some of the node transitions. So that's, again, where we expect to do better than the market. But on balance, as I said, second half -- think about second half as flat to the first half.

是的，西德尼。所以現在，我認為總的來說，我會說下半年將與上半年基本持平。因此，正如我之前提到的，我們預計第二季度收入將是我們今年的最低點。但在那之後，我們預計在今年餘下時間每個季度的環比增長將相對溫和。這將是 MSI 恢復的一個功能，也是一些節點轉換的好處。因此，這又是我們期望比市場做得更好的地方。但總的來說，正如我所說，下半場——想想下半場與上半場持平。

Okay. That's helpful. Related to the Electronics Chemicals business. Can you talk about the financial profile of that business in terms of revenue and profitability? I think you guys talked about what it was in 2022. But also related to that, does the announced divestiture of the business changed the way you think about the cost and product synergies you laid out in your Analyst Day the last time? And what about your CapEx outlook going forward?

好的。這很有幫助。與電子化學品業務相關。您能談談該企業在收入和盈利能力方面的財務狀況嗎？我想你們談到了 2022 年的情況。但與此相關的是，宣布的業務剝離是否改變了你們對上次在分析師日提出的成本和產品協同效應的看法？您的資本支出前景如何？

Sure. All good questions. So the decision -- first of all, the decision to divest is really the result of really careful and objective assessment of the various parts of the CMC portfolio. We talked about it during the Analyst Day we had at the end of last year. And by the time we presented to you at the end of last year, we knew that we wanted to divest the EC business. So we took that into account, and it was factored in the cost synergies that we were targeting. So no change to that commitment to deliver $75 million of cost synergies.

當然。所有的好問題。所以這個決定 - 首先，剝離的決定實際上是對 CMC 投資組合的各個部分進行真正仔細和客觀評估的結果。我們在去年年底的分析師日討論過這個問題。到去年年底我們向您介紹時，我們知道我們想要剝離 EC 業務。所以我們考慮到了這一點，並將其納入我們所針對的成本協同效應中。因此，提供 7500 萬美元成本協同效應的承諾沒有改變。

When it comes to the financial profile of that business, I would just say that think about 2022 sales around $360 million and think about an EBITDA number between $50 million and $55 million. And again, EBITDA is directional. This is a carve-out, but that's the range you should probably have in mind.

談到該業務的財務狀況，我只想說，2022 年銷售額約為 3.6 億美元，EBITDA 數字在 5000 萬至 5500 萬美元之間。同樣，EBITDA 是定向的。這是一個例外，但這是您可能應該記住的範圍。

And Sidney, as you think about that business as -- call it, $700 million in proceeds. Operating income is obviously lower than the EBITDA. But we're going to pay off debt that currently is at a rate of 7.7%. So the impact on the P&L of this divestiture is neutral to slightly positive.

而西德尼，正如你所認為的那樣——稱之為 7 億美元的收益。營業收入明顯低於EBITDA。但我們將償還目前利率為 7.7% 的債務。因此，此次資產剝離對損益的影響是中性到略微積極的。

Great. Super helpful.

偉大的。超級有幫助。

Our next question will come from Charles Shi with Needham & Company.

我們的下一個問題將來自 Needham & Company 的 Charles Shi。

A couple of questions. I really want to understand a bit of the near-term dynamics here. When I look at your segment revenue performance in Q1, I would have thought that SCEM and APS to be down a little bit more than what you have reported, and MC and AMH to be holding up slightly better. Given that SCEM and APS are more unit driven, the other two are more CapEx driven.

幾個問題。我真的很想在這裡了解一些近期動態。當我查看你們在第一季度的部門收入表現時，我本以為 SCEM 和 APS 的下降幅度比你們報告的要多一點，而 MC 和 AMH 的表現略好一些。鑑於 SCEM 和 APS 更受單位驅動，另外兩個更受資本支出驅動。

So can you help me understand a bit more how to reconcile that looks like the CapEx still holding relatively strong in Q1, but you'll see a little bit more of the sequential decline in -- especially MC but SCEM and APS, which are supposed to be more unit-driven, probably should have done more but you're actually doing okay?

所以你能幫我更多地理解如何協調第一季度的資本支出看起來仍然相對強勁，但你會看到更多的連續下降——尤其是 MC 但 SCEM 和 APS，它們應該是更加單位驅動，可能應該做更多，但你實際上做得還好嗎？

Yes. Good question. And there's certainly more than meets the eye. So I'm happy to try to unpack that a little bit more for you. So remember first that when we talk about our CapEx exposure, a lot of that exposure is to new fab constructions. And there was, believe it or not, a fairly steady level of investments in new fab construction projects. That helped sustain our fluid handling business, in particular. And that's largely what helped our AMH business to perform so well year-on-year and sequentially. The other part of that is what I was mentioning earlier, which is really the easing of a number of supply chain constraint.

是的。好問題。當然還有更多。因此，我很樂意嘗試為您進一步解壓縮。所以首先要記住，當我們談論我們的資本支出敞口時，很多敞口是新晶圓廠建設。不管你信不信，新晶圓廠建設項目的投資水平相當穩定。這尤其有助於維持我們的流體處理業務。這在很大程度上幫助我們的 AMH 業務實現了同比和環比的良好表現。另一部分就是我之前提到的，這實際上是一些供應鏈約束的放鬆。

MC, it's a little bit of a tale of 2 cities. You have, on the one hand, products that are components used in equipment platforms. And demand for those products, obviously, is under a lot of pressure. So it's down fairly significantly, but it was offset nicely by our liquid filtration business, as I mentioned earlier, strong demand for those products.

MC，這是一個關於 2 個城市的故事。一方面，您擁有作為設備平台中使用的組件的產品。顯然，對這些產品的需求承受著很大的壓力。因此，它的下降幅度相當大，但正如我之前提到的，我們的液體過濾業務對這些產品的強勁需求很好地抵消了這一影響。

You understand the need for greater purity and what it does for our customers. And then we also benefited from new capacity that came online late last year, and there was good timing because of the strong demand for those products.

您了解對更高純度的需求及其對我們客戶的作用。然後我們還受益於去年年底上線的新產能，由於對這些產品的強勁需求，時機很好。

When it comes to SCEM and APS, I agree with your statement. I think we are pleased with the performance. It was largely in line with what we were expecting. And it was -- the decline is a function of the exposure to memory. I mean those 2 divisions, I have seen actually fairly steady decline in demand starting late last year. We saw continuation of that in Q1 as expected. We are actually encouraged by the recent trend, and we're seeing actually signs of improvement for those businesses going forward. And that's one of the reasons why we believe that we expect to turn the corner in Q2.

說到SCEM和APS，我同意你的說法。我認為我們對錶現感到滿意。這在很大程度上符合我們的預期。它是——下降是記憶暴露的函數。我的意思是這兩個部門，從去年年底開始，我看到需求實際上相當穩定地下降。正如預期的那樣，我們在第一季度看到了這種情況的延續。實際上，我們對最近的趨勢感到鼓舞，而且我們確實看到了這些業務在未來有所改善的跡象。這就是我們相信我們希望在第二季度扭轉局面的原因之一。

I think that the other question, I think you talked about MSI or fab utilization to bottom in Q2. I think specifically caught out advance of foundry logic and the memory. Do you have any view about dual node foundry logic side of the MSI? And if you can, can you kind of quantify to us how much of exposure of your business to that part of the foundry logic side of the market? I know you're probably more levered to the advanced, but some color on that part of the market would be great.

我認為另一個問題，我想你談到了 MSI 或晶圓廠利用率在第二季度觸底。我認為特別抓住了代工邏輯和內存的進步。您對 MSI 的雙節點代工邏輯方面有何看法？如果可以的話，您能否向我們量化您的業務對市場的那部分代工邏輯方面的曝光程度？我知道您可能更喜歡高級產品，但那部分市場的一些顏色會很棒。

Yes. So mainstream certainly has been an area of strength across our portfolio. It was true in Q1. We expect that to continue to be true in Q2. And certainly, one of the reasons we have more muted expectations for the back half of the year is that we have some concern about the sustainability of demand from those mainstream fabs, and that's something we try to factor into our guidance for the back half of the year.

是的。因此，主流無疑是我們產品組合中的一個優勢領域。第一季度確實如此。我們預計第二季度將繼續如此。當然，我們對今年下半年的預期更加低調的原因之一是我們對那些主流晶圓廠需求的可持續性存在一些擔憂，而這正是我們試圖在下半年的指導中考慮的因素那一年。

When it comes to our overall exposure, it's something that is hard to do. But directionally, I would say that we have about 70% exposure to logic and foundry and about 30% exposure to memory for our fab customer business, right? And that fab customer business represents roughly 55% of our revenue.

當談到我們的整體曝光率時，這是一件很難做到的事情。但在方向上，我會說我們有大約 70% 的業務涉及邏輯和代工，大約 30% 的業務涉及我們的晶圓廠客戶業務的內存，對嗎？晶圓廠客戶業務約占我們收入的 55%。

And within that 70% of the fab business levered to logic foundry, how much of that is mature or mainstream side of the logic foundry? That's the question.

在這 70% 的晶圓廠業務中，有多少是邏輯代工的成熟或主流方面？這就是問題所在。

Yes. So that part gets a bit trickier to quantify because sometimes we don't have perfect visibility. But I would say, think about 60-40. 60% of that would be advanced, 40% would be mainstream roughly.

是的。所以這部分量化起來有點棘手，因為有時我們沒有完美的可見性。但我會說，想想 60-40。其中 60% 將是先進的，40% 將是主流。

Our next question will come from John Roberts with Credit Suisse.

我們的下一個問題將來自瑞士信貸的約翰羅伯茨。

And welcome, Linda. I'm sure you're listening in. And best wishes again, Greg. When you talk about easing of supply chain, I assume you're talking about the U.S.-China trade restrictions that were impactful in the fourth quarter. Have they largely gone away or have gone away? Or how's the sequential progression in your solutions to that headwind that you had in the fourth quarter?

歡迎，琳達。我確定您正在收聽。再次祝您好運，格雷格。當你談到放鬆供應鏈時，我想你是在談論在第四季度產生影響的美中貿易限制。他們基本上消失了還是已經消失了？或者你的解決方案在第四季度遇到的逆風的順序進展如何？

So the easing of the supply chain constraints really refer to something different. It's really about 2 things. One was the number of internal capacity constraints that we had all the way until the end of last year. But as I mentioned, a number of new process equipment lines came online. So we resolved most of our internal limitations. And then the second part was really getting access to enough quantities of certain raw materials. And as I said, on the situation, we're not entirely out of the woods, but we've made great progress versus where we were last year.

因此，供應鏈限制的放鬆確實指的是不同的東西。這真的是關於兩件事。一個是我們一直到去年年底的內部能力限制數量。但正如我所提到的，許多新的工藝設備生產線上線了。所以我們解決了大部分內部限制。然後第二部分是真正獲得足夠數量的某些原材料。正如我所說，在這種情況下，我們並沒有完全走出困境，但與去年相比，我們取得了很大進展。

And the U.S., China technology restrictions are not having impact at this point?

而美國、中國的技術限制在這一點上沒有影響？

Yes. So the impact is something that we quantified during the last -- the previous quarter's call. We spent a lot of time working with the U.S. Administration at the end of Q4 and our Chinese customers collecting certifications from our customers or performing due diligence on their operations. And we quantified the permanent impact -- negative impact to our top line to be about $20 million -- a loss of $20 million of revenue, permanent loss by quarter. And we saw actually about that number impacting mostly SCEM and APS in Q1.

是的。因此，影響是我們在上一季度的電話會議中量化的。我們在第四季度末花了很多時間與美國政府合作，我們的中國客戶從我們的客戶那裡收集認證或對他們的運營進行盡職調查。我們量化了永久性影響——對我們收入的負面影響約為 2000 萬美元——收入損失 2000 萬美元，按季度永久性損失。我們實際上看到這個數字主要影響第一季度的 SCEM 和 APS。

Our next question will come from Aleksey Yefremov with KeyBanc Capital Markets.

我們的下一個問題將來自 KeyBanc Capital Markets 的 Aleksey Yefremov。

Bertrand, do you have any views on node transitions as it relates to your business sort of beyond the back half of this year?

Bertrand，您對今年下半年以後與您的業務相關的節點轉換有什麼看法嗎？

Beyond the back half of this year? What I can tell you is that for this year, we think that those node transitions are largely on schedule. I mean beyond this year, we don't really like to comment on that. It's just would be speculative. There's a lot that can change between now and then. But I would say that for this year, the node transitions are largely on track, and we know that all of our customers are expressing a desire to continue to maintain the cadence of node transitions. It's in their best interest to maintain a rapid transition to the new nodes. That's the source of competitive advantage for them.

超過今年下半年？我可以告訴你的是，今年，我們認為這些節點轉換基本上是按計劃進行的。我的意思是今年以後，我們真的不想對此發表評論。這只是推測。從現在到那時，有很多事情可以改變。但我要說的是，今年，節點轉換基本上步入正軌，我們知道我們所有的客戶都表達了繼續保持節點轉換節奏的願望。保持向新節點的快速過渡符合他們的最大利益。這就是他們競爭優勢的來源。

And we believe that again, they're going to do everything they can to maintain a very rapid cadence, which plays to our strength because we believe we can help them. We can help them with very unique new materials, and we can help them solve their contamination issues, which means achieve faster time to yield. But again, I'm not going to comment on 2024. It's too early.

我們再次相信，他們將盡一切努力保持非常快的節奏，這對我們有好處，因為我們相信我們可以幫助他們。我們可以用非常獨特的新材料幫助他們，我們可以幫助他們解決污染問題，這意味著實現更快的產量。但同樣，我不打算對 2024 年發表評論。現在還為時過早。

Fair enough. And then on just the current year, should we think about your -- demand for your products broadly as sort of coincidental was fab utilization? Or would it be somewhat lagging or maybe leading the industry growth -- the industry trough?

很公平。然後就今年而言，我們是否應該考慮你的 - 對你的產品的廣泛需求是晶圓廠利用率的巧合？或者它會有點滯後或可能引領行業增長——行業低谷？

My answer would differ by division. There is a much stronger correlation with -- to wafer starts with SCEM and APS. The correlation is good, but not strong with MC in particular. The reason being that sometimes when customers actually ramp up production in a fab, they will use large quantities of filters, for instance, to just purge the lines, the chemical loops in the fabs. So that will create a little bit of a bump upfront.

我的答案因部門而異。 SCEM 和 APS 與晶圓啟動的相關性要強得多。相關性很好，但與 MC 的相關性不強。原因是有時當客戶實際提高晶圓廠的產量時，他們會使用大量過濾器，例如，只是為了淨化生產線，晶圓廠中的化學迴路。所以這會在前期造成一點衝擊。

And then those volumes actually will recede to what would be the normal level of daily consumption. So that's why sometimes, when you have a large node, you can see some weird trends. I mean they are totally expected and understood on our side, but sometimes externally, it's a bit hard to read.

然後這些數量實際上將回落到正常的日常消費水平。所以這就是為什麼有時候，當你有一個大節點時，你會看到一些奇怪的趨勢。我的意思是我們完全期望和理解它們，但有時在外部，它有點難以閱讀。

Our next question will come from Chris Kapsch with Loop Capital Markets.

我們的下一個問題將來自 Loop Capital Markets 的 Chris Kapsch。

This is rare for me, but I do want to give a shout out to Greg. Just the history there. You've been through a lot with the company. Kudos to all your accomplishments. I appreciate the relationship over the years and wish you the best and hope to keep in touch. So good luck. And so just on the results...

這對我來說很少見，但我確實想對格雷格大聲疾呼。只是那裡的歷史。你在公司經歷了很多。感謝你所有的成就。我感謝多年來的關係，祝你一切順利，並希望保持聯繫。祝你好運。因此，就結果而言...

Thank you, Chris, I appreciate it.

謝謝你，克里斯，我很感激。

Cheers. So just terrific narrative, especially considering the macro. I do have a follow-up, and it's really focused on this -- not just your sales resilience, but really the comments about the outperformance relative to the market being greater than expected. I'm just curious, Bertrand, just a statement about where you see the end market recovery being stronger vis-à-vis what may continue to be slower language.

乾杯。非常棒的敘述，尤其是考慮到宏觀。我確實有一個後續行動，它真的專注於這一點——不僅僅是你的銷售彈性，而且真的是關於相對於市場表現優於預期的評論。 Bertrand，我只是好奇，只是關於你看到終端市場復甦在哪些方面比可能繼續放緩的語言更強勁的聲明。

In other words, you -- it's known that you have more process per record win and therefore, more content per wafer, if you will, at these advanced more complex nodes. So for you to outperform better than expected, is it really just a statement about a view that -- that's where the demand will hold in better vis-à-vis maybe some of the legacy nodes or some of the more mature nodes?

換句話說，你 - 眾所周知，在這些先進的更複雜的節點上，每個記錄獲勝的過程更多，因此，如果你願意的話，每個晶圓的內容更多。因此，為了讓您的表現好於預期，這真的只是關於一種觀點的陳述——這就是需求相對於一些遺留節點或一些更成熟的節點更好地保持的地方嗎？

Yes. I mean, Chris, this is exactly what's happening. I mean, we're seeing steady Entegris content per wafer increase node after node. Even when you hear about wafer start reductions in memory, you know that a lot of those reductions are taking place in the lagging nodes. At some level, it gives us -- it creates additional opportunity for us to continue to push forward and to enjoy greater content per wafer.

是的。我的意思是，克里斯，這正是正在發生的事情。我的意思是，我們看到每個晶圓的 Entegris 內容在一個節點又一個節點地增加。即使當您聽說晶圓啟動內存減少時，您也知道其中很多減少發生在落後的節點中。在某種程度上，它給了我們——它為我們創造了額外的機會來繼續前進並享受每片晶圓的更多內容。

So the algorithm that we laid out for you in the last 2 or 3 Analyst Days, it's in full gear, and we are seeing the benefits of that. And we're seeing -- we have often had a question about whether the algorithm would stop working in a downturn. And here, we are demonstrating that Entegris is truly a resilient business on a cross-cycle basis.

因此，我們在過去 2 或 3 個分析師日為您制定的算法已全面投入使用，我們看到了它的好處。我們看到 - 我們經常有一個問題，即算法是否會在經濟低迷時停止工作。在這裡，我們證明 Entegris 確實是跨週期基礎上具有彈性的企業。

We've been able to deliver very compelling outperformance in an upturn. And I think that we are obviously not immune to a downturn. We -- our revenue will be down, but relative to the rest of the industry, I believe that we will be able to deliver some fairly strong result.

我們已經能夠在好轉中提供非常引人注目的優異表現。而且我認為我們顯然不能倖免於經濟低迷。我們——我們的收入將會下降，但相對於其他行業，我相信我們將能夠取得一些相當強勁的結果。

I don't want to be bragging. It was going to be down. So there's really no reason for us to be bragging about a down year. But I think on a relative basis, I think we will prove to be resilient.

我不想吹牛。它會下降。因此，我們真的沒有理由吹噓業績下滑的一年。但我認為相對而言，我認為我們將證明是有彈性的。

Got it. And just as a follow-up, one thing that I've observed over the many years is that when there's no transitions, particularly more challenging ones, that initially -- I mean, it shows up in the chip maker in the form of gross margin weakness. But the initial ramp, there's low yields, which effectively results in higher consumables in order to get to die production even if the yields are low. So there's a disproportionate benefit to the leading-edge consumable supplier when the node transition happen. Wondering if that dynamic is playing in to the extent that you have visibility to it. And yes, that was the...

知道了。作為後續行動，我多年來觀察到的一件事是，當沒有過渡，尤其是更具挑戰性的過渡時，最初——我的意思是，它以總收入的形式出現在芯片製造商中利潤率疲軟。但是最初的斜坡，產量很低，這有效地導致了更高的消耗品，以便即使產量很低也能進行模俱生產。因此，當節點轉換發生時，領先的耗材供應商將獲得不成比例的好處。想知道這種動態是否在您可以看到的範圍內發揮作用。是的，那是……

Yes, it is -- yes, it is playing in, in 2 ways. It's playing in, in the fab environment exactly as you described it, Chris. But it's also playing upstream in the supply lines because increasingly, I mean, as our fab customer transition to more demanding nodes, they will push their bulk chemical suppliers to significantly increase the purity levels of a broader array of process chemistries coming into the fabs.

是的，它是——是的，它以兩種方式發揮作用。它正在播放，在你描述的工廠環境中，克里斯。但它也在供應鏈的上游發揮作用，因為我的意思是，隨著我們的晶圓廠客戶向要求更高的節點過渡，他們將推動他們的大宗化學品供應商顯著提高進入晶圓廠的更廣泛工藝化學品的純度水平。

And it translates into great opportunities for more point of filtrations using more advanced filters that need to be replaced more frequently upstream in those supply lines and it's also going to drive consumptions of more high-purity drums.

它轉化為使用更先進的過濾器進行更多過濾點的巨大機會，這些過濾器需要在這些供應管線的上游更頻繁地更換，並且還將推動更多高純度桶的消費。

And those are exactly the types of investments we've been making here in Kaohsiung in Taiwan. We are adding capacity to our advanced filters. We are adding capacity to our high-purity drums to serve the extended ecosystem of our strategic fab customers here on the island. But it's happening everywhere in the world where there is a big push to the advanced nodes.

這些正是我們在台灣高雄進行的投資類型。我們正在為我們的高級過濾器增加容量。我們正在增加我們的高純度桶的容量，以服務於我們在島上的戰略晶圓廠客戶的擴展生態系統。但它發生在世界上任何一個大力推動高級節點的地方。

Our next question will come from Mike Harrison with Seaport Research Partners.

我們的下一個問題將來自 Seaport Research Partners 的 Mike Harrison。

I'm curious on the microcontamination control business and the weakness that you saw on the CapEx are more equipment-related -- Do you view those CapEx-related products as leading indicators? And do you view the Q1 weakness as maybe just a temporary impact or air pocket? Or do you expect further weakness on the equipment side?

我對微污染控制業務很好奇，您在資本支出上看到的弱點更多與設備相關——您是否將這些與資本支出相關的產品視為領先指標？您是否認為第一季度的疲軟可能只是暫時的影響或氣穴？還是您預計設備方面會進一步疲軟？

So typically, those are indeed leading indicators of what to expect in terms of WFE. And so we expect those product lines to continue to face some headwinds going into Q2. And then we frankly have very little visibility for the back half of the year. But internally, right now, we are not counting on any recovery for those products in 2023.

因此，通常情況下，這些確實是 WFE 預期的領先指標。因此，我們預計這些產品線將在第二季度繼續面臨一些不利因素。然後坦率地說，我們對今年下半年的能見度非常低。但在內部，我們目前並不指望這些產品在 2023 年有任何復蘇。

All right. And then on the APS business, I'm curious if you could comment on opportunities you're seeing in the pad side of the business. That was always an area that CMC saw as having a lot of growth potential. I think they had some challenges delivering on that growth, but I'm curious if you're maybe seeing more success already or expecting that you could be more successful on the pad side.

好的。然後在 APS 業務上，我很好奇你是否可以評論你在業務的墊端看到的機會。這一直是 CMC 認為具有巨大增長潛力的領域。我認為他們在實現這種增長方面遇到了一些挑戰，但我很好奇你是否已經看到了更多的成功，或者期望你可以在墊方面取得更大的成功。

It's a good question. So as I mentioned, actually, we are very excited about some emerging opportunities in SiC applications, not just for the slurries, but for the pads as well. In addition to that, we've seen some nice progress for silicon applications. It's still early days, but that part of the business has been -- over the last few quarters has been performing actually better than expected. And to your point, we have high expectations for this business to continue to perform better than it has historically.

這是個好問題。因此，正如我提到的，實際上，我們對 SiC 應用中的一些新興機會感到非常興奮，不僅是漿料，還有焊盤。除此之外，我們還看到了矽應用方面的一些不錯的進展。現在還處於早期階段，但業務的這一部分 - 在過去幾個季度中的表現實際上好於預期。就您的觀點而言，我們對這項業務的表現寄予厚望，以繼續比歷史上更好的表現。

All right. Thank you very much. Thank you for joining our call today. Please follow up with me, this is Bill Seymour, if you have anything else you want to cover. And have a great day. Thank you.

好的。非常感謝。感謝您今天加入我們的電話會議。請跟進我，我是 Bill Seymour，如果您有任何其他想要報導的內容。祝你有美好的一天。謝謝。

Thank you, ladies and gentlemen. This concludes today's Entegris' First Quarter 2023 Earnings Conference Call. Please disconnect your line at this time, and have a wonderful day.

謝謝你們，女士們，先生們。今天的 Entegris 2023 年第一季度收益電話會議到此結束。請此時斷開您的線路，祝您有美好的一天。

Congratulations, Greg, on your last call.

祝賀你，格雷格，你的最後一個電話。