Flex Ltd (FLEX) 2016 Q2 法說會逐字稿

Good afternoon, and welcome to the Flex second-quarter FY16 earnings conference call.

下午好，歡迎參加 Flex 2016 財年第二季財報電話會議。

(Operator Instructions)

（操作員說明）

At this time, for opening remarks and introductions, I would like to turn the call over to Mr. Kevin Kessel, Flex Vice President of Investor Relations.

現在，我想將電話轉給 Flex 投資者關係副總裁 Kevin Kessel 先生進行開場發言和介紹。

Sir, you may begin.

先生，您可以開始了。

Thank you, and welcome to Flex's conference call to discuss the results of our FY16 second quarter ended September 25, 2015.

謝謝您，歡迎參加偉創力的電話會議，討論截至 2015 年 9 月 25 日的 2016 財年第二季業績。

We have published slides for today's discussion that can be found on the Investor Relations section of our website.

我們已經發布了今天討論的幻燈片，可以在我們網站的投資者關係部分找到。

Joining me today is our Chief Executive Officer, Mike McNamara; and our Chief Financial Officer, Chris Collier.

今天加入我的是我們的執行長 Mike McNamara；以及我們的財務長 Chris Collier。

Today's call is being webcast live and recorded, and contains forward-looking statements which are based on current expectations and assumptions that are subject to risks and uncertainties, and actual results could materially differ.

今天的電話會議正在進行網路直播和錄音，其中包含基於當前預期和假設的前瞻性聲明，這些預期和假設受到風險和不確定性的影響，實際結果可能存在重大差異。

Such information is subject to change, and we undertake no obligation to update these forward-looking statements.

此類資訊可能會發生變化，我們不承擔更新這些前瞻性聲明的義務。

For a discussion of the risks and uncertainties, see our most recent filings with the Securities and Exchange Commission, including our current annual and quarterly reports.

有關風險和不確定性的討論，請參閱我們最近向美國證券交易委員會提交的文件，包括我們目前的年度和季度報告。

If this call references non-GAAP financial measures, these measures are located on the investor relations section of our website, along with the required reconciliation to the most comparable GAAP financial measures.

如果本次電話會議引用非公認會計原則財務指標，這些指標以及與最具可比性的公認會計原則財務指標所需的調節一起位於我們網站的投資者關係部分。

With that, I will pass the call to Chris.

這樣，我會將電話轉給克里斯。

Chris?

克里斯？

Thank you, Kevin, and thank you everyone, for joining us today.

謝謝你，凱文，也謝謝大家今天加入我們。

We appreciate your time and interest.

我們感謝您的時間和興趣。

Our second-quarter income statement highlights begin on slide 3. We remain focused on fulfilling our financial commitments, and our second quarter financial performance reflects the sound progress we are making.

我們第二季損益表的重點內容從投影片 3 開始。我們仍然專注於履行我們的財務承諾，我們第二季的財務表現反映了我們正在取得的良好進展。

Revenue grew $751 million or 13% quarter over quarter to $6.3 billion, which was above the midpoint of our guidance range, as every one of our business groups grew sequentially.

營收成長 7.51 億美元，環比成長 13%，達到 63 億美元，高於我們指導範圍的中點，因為我們的每個業務部門都在連續成長。

Year over year, our revenue declined $212 million or 3%, largely due to reduced demand with our largest customer, as expected.

我們的營收年減了 2.12 億美元，即 3%，這主要是由於我們最大客戶的需求減少（如預期）。

Later, Mike will expand further on our business segment revenue and performance.

隨後，Mike 將進一步闡述我們業務部門的收入和績效。

Despite the modest decline in quarterly revenue from the prior year, our second-quarter adjusted operating income increased 7% year-over-year to $196 million, and was above the midpoint of our guidance range.

儘管季度收入較上年略有下降，但我們第二季調整後營業收入年增 7% 至 1.96 億美元，高於我們指導範圍的中點。

Adjusted net income totaled $153 million, reflecting a less than proportional 2.5% decline year-over-year.

調整後淨利總計 1.53 億美元，年減 2.5%。

Our adjusted earnings per diluted share for our second quarter was $0.27, which represented a 4% year-over-year improvement, and was towards the high end of our adjusted EPS guidance range of $0.22 to $0.28.

第二季調整後每股攤薄收益為 0.27 美元，年增 4%，接近調整後每股盈餘指引範圍 0.22 至 0.28 美元的上限。

Turning to slide 4, you will see our quarterly financial highlights.

翻到投影片 4，您將看到我們的季度財務亮點。

Our second-quarter adjusted gross profit increased 5% year over year and 13% sequentially to $399 million.

我們第二季調整後毛利年增 5%，季增 13%，達到 3.99 億美元。

Our gross margin expanded 50 basis points from prior year to 6.3%.

我們的毛利率比上年增長 50 個基點，達到 6.3%。

As we have consistently stated, our margin is fundamentally a function of our business mix.

正如我們一貫指出的，我們的利潤率從根本上來說是我們業務組合的函數。

It has been our strategic objective to move our long-term portfolio towards a greater mix of businesses that have longer product life cycles and higher margins, and our improved gross margin reflects these efforts.

我們的策略目標是將我們的長期投資組合轉向具有更長產品生命週期和更高利潤率的更多業務組合，我們毛利率的提高反映了這些努力。

This quarter, our adjusted operating income increased by $13 million or 7% year over year to $196 million.

本季度，我們調整後的營業收入年增 1,300 萬美元，成長 7%，達到 1.96 億美元。

Our adjusted operating margin expanded 30 basis points year-over-year to 3.1%.

調整後的營業利益率年增 30 個基點，達到 3.1%。

Our operating profit and operating margin expansion continues to benefit from a richer business mix, and maintaining strong discipline over our operational expenses.

我們的營業利潤和營業利潤率的擴張繼續受益於更豐富的業務組合，以及對營運費用的嚴格控制。

Second-quarter SG&A expense was $203 million, which grew by $8 million sequentially, primarily as a result of the incremental R&D and SG&A associated with our Mirror Controls acquisition.

第二季的 SG&A 費用為 2.03 億美元，比上一季增加了 800 萬美元，主要是由於與收購 Mirror Controls 相關的研發和 SG&A 費用增加。

While we continue to drive greater innovation, design efforts and strategic initiatives that further expand and enhance our platform, we remain very conscious of our spend levels.

在我們繼續推動更大的創新、設計努力和策略性舉措以進一步擴展和增強我們的平台的同時，我們仍然非常清楚我們的支出水平。

We are intently focused on leveraging productivity and efficiency gains to subsidize our strategic initiatives.

我們專注於利用生產力和效率提升來資助我們的策略舉措。

Return on invested capital is a key metric that supports and guides our financial decision making and our capital allocation.

投資資本回報率是支持和指導我們的財務決策和資本配置的關鍵指標。

Our return on invested capital was 22.7% in the quarter.

本季我們的投資資本報酬率為 22.7%。

Overall, our return on invested capital remains well above our cost of capital, and above our targeted level of 20%.

整體而言，我們的投資資本報酬率仍然遠高於我們的資本成本，也高於我們 20% 的目標水準。

Please turn to slide 5 for our operating performance by business group.

請參閱投影片 5 以了解我們依業務部門劃分的經營績效。

Presently, we have three of our four business segments operating at or exceeding our target operating margin ranges.

目前，我們的四個業務部門中的三個業務部門的營運水準達到或超過了我們的目標營運利潤率範圍。

In the second quarter, our Integrated Network Solutions, or INS segment, generated $66 million in operating profit, and its operating margin increased to 3%, which moved it into the targeted range of 3% to 4%.

第二季度，我們的整合網路解決方案（INS）部門實現了 6,600 萬美元的營業利潤，營業利潤率增至 3%，進入了 3% 至 4% 的目標範圍。

This expansion was aided by solid sequential top line growth, and improved utilization levels.

這一擴張得益於營收的連續穩健成長和利用率水準的提高。

Our Consumer Technologies Group, or CTG business, generated $41 million in operating profit, which resulted in an operating margin of 2%.

我們的消費科技集團（CTG）業務創造了 4,100 萬美元的營業利潤，營業利潤率為 2%。

This was within our targeted range of 2% to 3%, but was negatively impacted by our China smartphone business declines, and measures we implemented to align our cost structure with its current and prospective business demand, and to a lesser extent, we incurred some charges associated with a distressed customer.

這在我們2% 至3% 的目標範圍內，但受到我們中國智慧型手機業務下滑以及我們為使成本結構與其當前和未來業務需求保持一致而採取的措施的負面影響，並且在較小程度上，我們產生了一些與陷入困境的客戶相關的費用。

We want to update our view as to the potential exposure from down-sizing our China smartphone operation.

我們希望更新我們對縮減中國智慧型手機業務規模所帶來的潛在風險的看法。

Our view of being able to manage and mitigate any material risk remains unchanged and intact.

我們對能夠管理和減輕任何重大風險的看法保持不變。

Given actions already undertaken, we believe that as we move forward, we will manage this dynamic situation to a potential exposure of a $0.01 to $0.02 EPS impact, which comes down from the prior risk profile of $0.02 to $0.03.

鑑於已經採取的行動，我們相信，隨著我們的前進，我們將管理這種動態局勢，以應對每股收益0.01 美元至0.02 美元的潛在影響，這比之前的0.02 美元至0.03 美元的風險狀況有所下降。

We also would like to reiterate that it is our intent to continue to drive a deeper engagement model with our CTG customers, where we are providing more meaningful design and innovation, which will result in capturing a richer margin.

我們也想重申，我們打算繼續推動與 CTG 客戶更深入的互動模式，提供更有意義的設計和創新，從而獲得更豐厚的利潤。

Our Industrial and Emerging Industries, or IEI segment, produced $32 million in operating profit and a 2.8% operating margin, which was below our targeted range of 4% to 6% for the segment, and below our expectations for sequential improvement.

我們的工業和新興產業（IEI）部門產生了3,200 萬美元的營業利潤和2.8% 的營業利潤率，低於我們對該部門4% 至6% 的目標範圍，也低於我們對連續改善的預期。

While it modestly improved from last quarter, our operational execution continues to be hampered on a couple of significant ramps, and its revenue growth has also been more muted due to macro factors.

雖然較上季度略有改善，但我們的營運執行在幾次顯著的成長中繼續受到阻礙，而且由於宏觀因素，其收入成長也更加緩慢。

Management remains confident in our ability to operate this segment within its target margin range, and believes that over the next couple of quarters, it will improve towards that range.

管理層對我們在目標利潤範圍內運營該部門的能力仍然充滿信心，並相信在接下來的幾個季度中，該部門將朝著該範圍有所改善。

Lastly, our High Reliability Solutions, or HRS business, generated $71 million in operating profit, which equates to a 7.5% operating margin.

最後，我們的高可靠性解決方案（HRS）業務創造了 7,100 萬美元的營業利潤，相當於 7.5% 的營業利潤率。

This exceeded our target operating margin range of 5% to 7%, reflecting the meaningful contribution from our MCi acquisition, and the solid execution of this segment, while managing numerous new program and product ramps.

這超出了我們 5% 至 7% 的目標營業利潤率範圍，反映出我們收購 MCi 所做出的有意義的貢獻，以及該部門的穩健執行，同時管理了大量的新項目和產品升級。

Let us turn to slide 6 for some insight around other income statement elements.

讓我們轉向投影片 6，了解損益表其他要素的一些見解。

Net interest and other expense was approximately $24 million in this quarter, which was slightly better than our guidance of $25 million.

本季淨利息和其他費用約為 2,400 萬美元，略優於我們 2,500 萬美元的指引。

For our December quarter, we continue to believe that modeling quarterly net interest and other expense at $25 million is appropriate.

對於我們 12 月的季度，我們仍然認為將季度淨利息和其他費用建模為 2500 萬美元是合適的。

The adjusted income tax expense for the second quarter was $20 million, reflecting an adjusted income tax rate of approximately 11.4%, which exceeded our targeted tax rate range of 8% to 10%.

第二季調整後所得稅費用為2000萬美元，調整後所得稅稅率約為11.4%，超出了我們8%至10%的目標稅率範圍。

Our tax rate will fluctuate quarter to quarter due to various factors, such as our earnings mix between taxing jurisdictions, changes in our tax reserves, and valuation allowances for deferred tax assets, current period acquisitions, and even foreign currency.

由於各種因素，我們的稅率將按季度波動，例如我們在徵稅管轄區之間的收益組合、我們的稅收儲備的變化以及遞延稅項資產的估值備抵、當期收購，甚至外幣。

The increase this past quarter was primarily due to the MCi acquisition, and impacts from foreign currency; however, our estimated annual FY16 effective tax rate remains between 8% to 10%.

上一季的成長主要是由於 MCi 收購以及外匯的影響；然而，我們預計 2016 財年的年度有效稅率仍保持在 8% 至 10% 之間。

Now when reconciling between our quarterly GAAP and adjusted EPS, you see a $0.05 impact from the stock-based compensation expense and intangible amortization expense, net of tax benefits.

現在，當我們調整季度 GAAP 和調整後每股盈餘時，您會發現股票補償費用和無形攤銷費用（扣除稅收優惠）產生 0.05 美元的影響。

This increase from the prior quarter due to additional intangible amortization expense related to the Mirror Controls acquisition.

這一增長較上一季度有所增加，是由於與 Mirror Controls 收購相關的額外無形攤銷費用。

Turning to slide 7, I'll review our cash flows and related elements.

轉向投影片 7，我將回顧我們的現金流量和相關要素。

We generated $300 million in cash flow from operations this quarter, and have pushed our year-to-date cash flow from operations to $662 million, as we continue to operate with discipline.

本季我們從營運中產生了 3 億美元的現金流，隨著我們繼續嚴格運營，我們的年初至今的營運現金流已達到 6.62 億美元。

Despite the strong 13% sequential growth in our business, our net working capital increased by only 7% or $128 million sequentially, as we efficiently managed our supply chain and our operations.

儘管我們的業務連續成長了 13%，但我們的淨營運資本僅連續成長了 7%，即 1.28 億美元，因為我們有效地管理了我們的供應鏈和營運。

Net working capital as a percentage of sales declined sequentially from 7.8% to 7.4%, and continues to remain within our targeted net working capital to sales range of 6% to 8%.

淨營運資本佔銷售額的百分比從 7.8% 連續下降至 7.4%，並繼續保持在我們淨營運資本佔銷售額 6% 至 8% 的目標範圍內。

Taking a closer look at net working capital, most notable was our reduction in inventory days, which we brought down by 6 days to 54 days, reflecting inventory turns of 6.8 times.

仔細觀察淨營運資本，最值得注意的是我們的庫存天數減少，我們將庫存天數減少了 6 天至 54 天，反映庫存週轉率為 6.8 倍。

Our cash conversion cycle totaled 25 days, which decreased 3 days sequentially, and 2 days from a year ago.

我們的現金週轉週期總計 25 天，比上一季減少 3 天，比去年同期減少 2 天。

Given our current and prospective mix of business, we continue to believe that our net working capital as a percentage of sales will remain in the range of 6% to 8% of our net sales.

考慮到我們目前和未來的業務組合，我們仍然相信我們的淨營運資本佔銷售額的百分比將保持在淨銷售額的 6% 至 8% 範圍內。

This quarter, our net capital expenditures was $157 million which was above our quarterly depreciation level.

本季度，我們的淨資本支出為 1.57 億美元，高於季度折舊水準。

We continued to make investments in additional capability and capacity expansion to support our automotive, medical, and energy businesses, where we are ramping many new programs.

我們繼續投資於額外的能力和產能擴張，以支持我們的汽車、醫療和能源業務，我們正在這些領域推出許多新項目。

We believe our global system has been thoughtfully built, and we are well-positioned in terms of technologies and capacity to support future growth.

我們相信我們的全球體係是經過深思熟慮建立的，我們在支持未來成長的技術和能力方面處於有利地位。

This will allow us to manage our CapEx investment levels to be at or below our depreciation levels for the remainder of FY16.

這將使我們能夠在 2016 財年剩餘時間內將資本支出投資水準控制在或低於折舊水準。

We generated over $368 million of free cash flow during the first half of FY16, and over the last 12 months, our free cash flow generation was $754 million.

2016 財年上半年，我們產生了超過 3.68 億美元的自由現金流，在過去 12 個月中，我們的自由現金流產生了 7.54 億美元。

Clearly, as evidenced again this quarter with our performance, Flex remains fundamentally structured, disciplined, and on pace to achieve our commitment to generate free cash flow of $3 billion to $4 billion for the five-year period ending in FY17.

顯然，正如本季度我們的業績再次證明的那樣，偉創力仍然具有基本的結構性、紀律性，並且正在穩步實現我們的承諾，即在截至2017 財年的五年期間產生30 億至40 億美元的自由現金流。

Lastly, we continued to use our strong cash flow generation to consistently return value to shareholders through repurchasing of our shares.

最後，我們持續利用強大的現金流量產生能力，透過回購股票持續為股東回報價值。

This quarter, we invested $142 million to repurchase almost 13 million shares, or over 2% of our ordinary shares during the quarter.

本季度，我們投資了 1.42 億美元，回購了近 1,300 萬股股票，佔本季普通股的 2% 以上。

Our actions this quarter reflect our unwavering commitment to return over 50% of our annual free cash flow to our shareholders.

我們本季的行動反映了我們堅定不移的承諾，將年度自由現金流的 50% 以上回饋給股東。

Now turning to slide 8, let's review our balanced capital structure.

現在轉到投影片 8，讓我們回顧一下我們的平衡資本結構。

Our financial condition remains strong, with no debt maturities until calendar 2018.

我們的財務狀況依然強勁，直到 2018 年才到期。

With $3.2 billion in liquidity, and a total cash of approximately $1.7 billion.

流動資金為 32 億美元，現金總額約 17 億美元。

Our debt to EBITDA ratio is 2.2 times.

我們的負債與 EBITDA 的比率是 2.2 倍。

Our capital structure is sound, and provides us with ample flexibility to support our business.

我們的資本結構健全，為我們提供了足夠的靈活性來支持我們的業務。

That concludes the recap of our financial performance for the second quarter.

我們第二季財務表現的回顧到此結束。

Before I turn the call over to Mike, I'd like to summarize.

在將電話轉給麥克之前，我想總結一下。

Flex continues to be focused on improving its execution, operating with discipline, and working hard to drive a richer engagement model with our customers, while consistently delivering on our commitments amid a dynamic macro environment.

Flex 繼續專注於提高執行力、遵守紀律、努力推動與客戶建立更豐富的互動模式，同時在動態的宏觀環境中始終如一地履行我們的承諾。

Now, I'll turn the call over to Mike.

現在，我將把電話轉給麥克。

Thanks, Chris.

謝謝，克里斯。

Please turn to slide 9 for our second-quarter FY2016 highlights and key trends.

請參閱投影片 9，以了解 2016 財年第二季的亮點和主要趨勢。

Our second quarter of FY16 represented sequential growth across all four of our business groups, resulting from new programs and improving engagement model.

由於新計畫和改進的參與模式，2016 財年第二季我們所有四個業務集團都實現了連續成長。

We continued to effectively manage the control of elements of our business and deploy capital intelligently, both of which are not impacted by macroeconomic cross currents.

我們持續有效管理業務要素的控制，智慧配置資本，不受宏觀經濟逆流的影響。

We are operating and managing our business with discipline, thus enabling us to be better positioned to expand our relationship with existing customers, while concurrently adding new relationships.

我們按照紀律經營和管理我們的業務，使我們能夠更好地擴大與現有客戶的關係，同時增加新的關係。

Improving growth with a richer engagement model is paramount to our business strategy.

透過更豐富的參與模式促進成長對於我們的業務策略至關重要。

Nike's recent announcement is a testament to exactly that.

耐吉最近的聲明就證明了這一點。

Last week, during Nike's Investor Day, Nike announced a partnership with Flex to accelerate the introduction of advanced innovation to Nike's manufacturing supply chain.

上週，在耐吉投資者日期間，耐吉宣布與偉創力建立合作夥伴關係，以加速將先進創新引入耐吉的製造供應鏈。

Working together, Nike and Flex will deliver innovation that enables product to reach consumers more quickly, with customized solutions and increased performance innovation.

耐吉和偉創力將攜手合作，提供創新，透過客製化解決方案和增強的性能創新，讓產品更快到達消費者手中。

This new relationship is a perfect example of how we go sketch to scale, and are able to leverage our world-class expertise in design, engineering, supply chain, automation, sustainability, and advanced manufacturing for wide-ranging product categories, including and beyond electronics.

這種新的關係是我們如何從草圖到規模化的完美範例，並且能夠利用我們在設計、工程、供應鏈、自動化、永續發展和先進製造方面的世界一流專業知識來生產廣泛的產品類別，包括及其他產品類別電子產品。

Our business will continue to evolve past the boundaries and confines of electronics alone, yet it is our expertise around complex electronic supply chain that form the foundation of our value proposition to expand our offerings into any supply chain, regardless of product category.

我們的業務將繼續發展，超越電子產品的界限和限制，但我們在複雜電子供應鏈方面的專業知識構成了我們價值主張的基礎，將我們的產品擴展到任何供應鏈，無論產品類別如何。

We are very cost disciplined, and are continuing to stay focused on driving a return on invested capital above our cost of capital.

我們非常嚴格控製成本，並將繼續專注於使投資資本回報率高於資本成本。

This effort drives free cash flow, which is off to a good start in the first half of FY16, at $368 million.

這項努力推動了自由現金流，2016 財年上半年開局良好，達到 3.68 億美元。

Our consistent free cash flow generation affords us the ability to grow our business through smart capital investments or acquisitions like the recently-closed NEXTracker acquisition, while still continuing to enable the return of meaningful capital to shareholders.

我們持續產生的自由現金流使我們能夠透過明智的資本投資或收購（例如最近完成的 NEXTracker 收購）來發展我們的業務，同時仍繼續向股東返還有意義的資本。

Our capital return to shareholders continued this quarter, as we invested $142 million to repurchase nearly 13 million shares.

本季我們持續向股東回報資本，投資 1.42 億美元回購近 1,300 萬股股票。

Since beginning our current capital return program in FY11, we have repurchased approximately 318 million shares for over $2.4 billion, and reduced our net shares outstanding by 32%.

自 2011 財年開始目前的資本回報計畫以來，我們已以超過 24 億美元的價格回購了約 3.18 億股股票，並將我們的流通股淨額減少了 32%。

Please turn to slide 10 for a look at revenue by business group.

請翻到投影片 10 查看按業務組別劃分的收入。

We had revenue upside relative to our guidance midpoint for the September quarter as a result of better than expected performance in INS and CTG, in-line performance at HRS, and a weaker IEI.

由於 INS 和 CTG 的業績優於預期、HRS 的業績符合預期以及 IEI 的疲弱，我們的營收相對於 9 月季度的指導中位數有所上升。

INS increased 12% sequentially, and was above our expectation for a high single-digit increase.

INS 環比成長 12%，高於我們對高個位數成長的預期。

Revenue was $2.2 billion, reflecting a $239 million increase from last quarter.

營收為 22 億美元，較上季增加 2.39 億美元。

In the quarter, our telecom and networking businesses were both above forecast, and exhibited strong sequential growth due to new program ramps that more than offset weak end markets.

本季度，我們的電信和網路業務均高於預期，並且由於新計劃的增加抵消了疲軟的終端市場，因此表現出強勁的連續成長。

Converged infrastructure continued to perform well, with solid sequential growth.

融合基礎設施持續表現良好，環比成長穩健。

The only weak spot in INS was our Server and Storage business, which declined to single digits.

INS 唯一的弱點是我們的伺服器和儲存業務，下降至個位數。

We are expecting sustained INS revenue growth this quarter, driven by the continued ramp-up of multiple new bookings during the past 12 to 24 months.

我們預計，在過去 12 至 24 個月內多個新預訂量持續增加的推動下，本季 INS 營收將持續成長。

These bookings were offsetting the consistent sluggishness in the end markets, as we see little recovery in these markets through year-end.

這些預訂抵消了終端市場持續低迷的影響，因為我們認為這些市場到年底幾乎沒有復甦。

However, for next quarter, we expect INS revenue to be up mid to high single digits, entirely driven by new business wins, in the midst of a challenging macro.

然而，在充滿挑戰的宏觀環境中，我們預計下個季度 INS 收入將成長中高個位數，這完全是由新業務的成長所推動的。

CTG's revenue rose 28% sequentially, above our expectation for a 15% to 25% sequential increase.

三峽集團的營收季增 28%，高於我們預期的環比成長 15% 至 25%。

This resulted in revenues of $2 billion, up $446 million sequentially.

這使得營收達到 20 億美元，比上一季增加 4.46 億美元。

The revenue beat in CTG was due to strong demand for wearables, connected home, gaming, and other CTG product categories.

CTG 的營收成長是由於對穿戴式裝置、連網家庭、遊戲和其他 CTG 產品類別的強勁需求。

In addition, our smartphone business grew sequentially in the quarter, above our expectations for stable demand.

此外，我們的智慧型手機業務在本季連續成長，超出了我們對穩定需求的預期。

We are guiding CTG to deliver in the low single digits sequentially, with most products exhibiting normal seasonality, but being offset by weakness from our largest smartphone customer.

我們預計三峽集團將連續交付低個位數的產品，大多數產品表現出正常的季節性，但被我們最大的智慧型手機客戶的疲軟所抵消。

IEI increased 1% sequentially to $1.15 billion, and was up 4% year-over-year.

IEI 環比成長 1%，達到 11.5 億美元，年增 4%。

The broader macro pressures were most evident across IEI's diverse customer base, and have accelerated over the last few months.

更廣泛的宏觀壓力在 IEI 的多元化客戶群中最為明顯，並且在過去幾個月中加劇。

We just closed on our acquisition of NEXTracker, a global market leader in smart solar tracking solutions.

我們剛完成對 NEXTracker 的收購，NEXTracker 是智慧太陽能追蹤解決方案的全球市場領導者。

We are thrilled to have the NEXTracker team on-board and look forward to NEXTracker further complimenting our existing $1 billion-plus energy business.

我們很高興 NEXTracker 團隊加入，並期待 NEXTracker 進一步完善我們現有的超過 10 億美元的能源業務。

Like the MCi acquisition before it, this acquisition is also expected to be accretive to our gross margin, EPS, and cash flow generation in its first quarter.

與先前收購 MCi 一樣，此次收購預計也將增加我們第一季的毛利率、每股盈餘和現金流量。

As we look to the December quarter, we still see the macro pressures weighing in on our IEI business, but we still expect IEI to be up mid to high single digits sequentially, as new ramps and contribution from our recent NEXTracker acquisition aids us in overcoming these headwinds.

展望 12 月季度，我們仍然看到宏觀壓力對我們的 IEI 業務造成影響，但我們仍然預計 IEI 將連續上升中高個位數，因為我們最近收購 NEXTracker 帶來的新增長和貢獻有助於我們克服困難這些逆風。

Our HRS group performed essentially in line with our expectations, and grew 6% sequentially to $955 million.

我們的 HRS 部門的業績基本上符合我們的預期，環比成長 6%，達到 9.55 億美元。

This marked HRS' 23rd straight quarter of year-over-year revenue growth.

這標誌著 HRS 收入連續第 23 個季度實現同比增長。

Our automotive business was strong on the back of MCi's performance, where our medical business was stable.

我們的汽車業務在 MCi 業績的支持下表現強勁，而我們的醫療業務也保持穩定。

Next quarter, we expect HRS to be up low single digits sequentially, driven mostly by strength in automotive.

下個季度，我們預計 HRS 將連續成長低個位數，這主要是由汽車產業的強勁推動。

Now, turning to our December quarter guidance on slide 11.

現在，轉向幻燈片 11 上的 12 月季度指引。

For the December quarter, or Q3 FY16, revenue is expected to be $6.2 billion to $6.8 billion.

12 月季度（即 2016 財年第三季）的營收預計為 62 億美元至 68 億美元。

This range reflects a sequential increase of 3% at the midpoint, in line with our historic seasonality for the December quarter, as growth, driven by the ramp-up of multiple new programs across all four of our business groups, are partially offset by macro pressures.

這一範圍反映了中點 3% 的連續增長，與我們 12 月季度的歷史季節性相符，因為我們所有四個業務集團的多個新項目的增加所推動的增長部分被宏觀經濟所抵消。壓力。

Our adjusted operating income is forecast to be in the range of $195 million to $235 million.

我們調整後的營業收入預計在 1.95 億美元至 2.35 億美元之間。

This equates to an adjusted EPS guidance range of $0.28 to $0.34 per share based on weighted average shares outstanding of 563 million.

這相當於根據已發行股數 5.63 億股的加權平均數調整後每股收益指引範圍為 0.28 美元至 0.34 美元。

The adjusted EPS guidance is approximately $0.06 per share higher than the quarterly GAAP earnings per diluted share, due to intangible amortization, and stock-based compensation.

由於無形攤銷和基於股票的薪酬，調整後的每股收益指引比季度公認會計準則稀釋每股收益高出約 0.06 美元。

Before I open the call up for Q&A, I'd like to reiterate my thanks to all our employees worldwide for their hard work and dedication during the second quarter.

在開始問答之前，我想再次感謝我們全球所有員工在第二季度的辛勤工作和奉獻精神。

We operated as a unified team and delivered improving results, while keeping a strong focus on our customers, and returning value to shareholders.

我們作為一個統一的團隊運作，取得了不斷進步的業績，同時高度關注我們的客戶，並為股東回報價值。

With that, I would like to open up for Q&A.

至此，我想開始問答環節。

So operator?

那麼運營商呢？

(Operator Instructions)

（操作員說明）

Your first question comes from the line of Amit Daryanani with RBC.

你的第一個問題來自 RBC 的 Amit Daryanani。

Your line is open.

您的線路已開通。

Two questions from me.

我有兩個問題。

First, Chris, could you just talk, given the two sort of larger deals you've done in the last few months with Mirrors and NEXTracker, how do you think of capital allocation as we move forward, and what sort of debt levers or debt coverage ratios are you comfortable with at this point?

首先，Chris，您能否談談過去幾個月您與 Mirrors 和 NEXTracker 完成的兩筆較大交易，您如何看待我們前進過程中的資本配置，以及什麼樣的債務槓桿或債務目前您對覆蓋率感到滿意嗎？

Thanks for the question, Amit.

謝謝你的提問，阿米特。

So we're pretty excited about the deals that we've been executing upon, and if you think about capital allocation for us, the underlying premise is just to continue to create shareholder value, with a long-term commitment.

因此，我們對我們一直在執行的交易感到非常興奮，如果你考慮我們的資本配置，基本前提就是繼續創造股東價值，並做出長期承諾。

We have a stated objective of returning over 50% of our free cash flow to shareholder returns, and you saw it this quarter, and it remains and will continue to be the key feature, returning value to shareholders.

我們的既定目標是將超過 50% 的自由現金流返還給股東回報，您在本季度就看到了這一點，而且它仍然並將繼續成為關鍵特徵，為股東回報價值。

But as you think about the ability for us to do transactions, M&A transactions to expand the portfolio, capture more technologies, and enhance that piece of the business that has longer product life cycles, higher margins and the like.

但當你想到我們進行交易、併購交易以擴大產品組合、獲取更多技術並增強具有更長產品生命週期、更高利潤等的業務的能力時。

We have capability in terms of the balance sheet and the existing framework that we're operating in today, and all these targets are bringing with it higher margins, cash flow, and strong EBITDA, so it allows for us to even support those deals with leverage, as we move forward.

我們在資產負債表和我們今天運營的現有框架方面有能力，所有這些目標都帶來了更高的利潤、現金流和強勁的 EBITDA，因此它使我們能夠支持這些交易槓桿，作為我們前進的動力。

I think we have a very flexible position right now in terms of the balance sheet and capabilities to get after M&A, as we see fit.

我認為我們現在在資產負債表和併購後的能力方面擁有非常靈活的立場，正如我們認為合適的那樣。

We've been very selective.

我們非常有選擇性。

If you look over the last three years, we've only done roughly 10 transactions.

如果你看看過去三年，我們只完成了大約 10 筆交易。

Just because we've had a couple larger ones in the recent two quarters doesn't depart from our very thoughtful approach to M&A, balancing that with the unwavering commitment to increasing shareholder value, to returning it through the share repurchase program.

僅僅因為我們在最近兩個季度進行了幾起規模較大的併購，並不背離我們非常深思熟慮的併購方式，我們要在併購方面與堅定不移地致力於增加股東價值、通過股票回購計劃回報股東價值之間取得平衡。

Got it.

知道了。

Apologize if I missed this, but could you talk about how much -- in your December quarter guide, what contribution are you assuming from NEXTracker and how does the margin profile for this asset stack up versus the 4% to 6% rate you have talked about for IEI?

如果我錯過了這一點，請道歉，但是您能否在12 月季度指南中談談您從NEXTracker 獲得的貢獻是多少，以及該資產的保證金狀況與您所說的4% 至6% 的利率相比如何關於IEI？

Certainly.

當然。

So we just closed that transaction, and if you go back in September, we tried to size up what that transaction looks like for us.

因此，我們剛剛完成了該交易，如果您在 9 月返回，我們會嘗試評估該交易對我們來說是什麼樣子。

Really excited about bringing that new technology into the fold.

能夠將這項新技術引入我們真的很興奮。

It greatly complements the $1 billion energy business we have today.

它極大地補充了我們今天價值 10 億美元的能源業務。

We saw that coming into the quarter in a range of $80 million to $120 million of contribution.

我們看到本季的捐款額在 8,000 萬至 1.2 億美元之間。

You could probably expect that in the middle of that range.

您可能會期望該值處於該範圍的中間。

And one of the things we tried to highlight earlier was the margin contribution for that business is healthily above the IEI target margin range.

我們先前試圖強調的一件事是該業務的利潤貢獻健康地高於 IEI 目標利潤範圍。

So as we get that into the fold, and start driving it, you should see that above the top end of that 6%.

因此，當我們將其納入並開始推動它時，您應該會看到它高於 6% 的上限。

Perfect.

完美的。

Thanks, and congrats on the quarter, guys.

謝謝，夥計們，恭喜這個季度。

Your next question comes from the line of Brian Alexander with Raymond James.

你的下一個問題來自布萊恩亞歷山大和雷蒙詹姆斯的對話。

Your line is open.

您的線路已開通。

So just following up to Amit's question, is all the growth in IEI sequentially coming from NEXTracker?

那麼，緊接著 Amit 的問題，IEI 的所有成長都是連續來自 NEXTracker 的嗎？

Just want to put into context your comments about overall demand.

只是想將您對整體需求的評論結合起來。

Obviously there has been a lot of industrial OEMs that have seen weakness in recent weeks, so if we take that acquisition out are you basically expecting IEI to be flattish on a sequential basis?

顯然，最近幾週有很多工業原始設備製造商都表現疲軟，因此，如果我們剔除該收購，您是否基本上預計 IEI 的業績將持平？

Yes, you are correct.

是的，你是對的。

We tried to provide that lens when we had the prepared remarks.

當我們準備好評論時，我們試圖提供這個視角。

We've been seeing a really accelerated impact in the last even few days, in terms of our broad customer base that exists within IEI, and we've seen that macro pressure really weigh in.

在過去的幾天裡，就 IEI 內部廣泛的客戶群而言，我們已經看到了真正加速的影響，我們已經看到宏觀壓力確實產生了影響。

Underneath that, we probably would have been down, but underneath that, we're ramping several new programs, and so that neutralizes at the core.

在此之下，我們可能會陷入困境，但在此之下，我們正在推出幾個新計劃，從而在核心上中和。

Think of the growth in IEI to be -- for the next quarter, the December quarter, to be based on NEXTracker.

考慮 IEI 下一季（即 12 月季度）的成長將基於 NEXTracker。

Okay.

好的。

And then just a follow-up on the smartphone business.

然後是智慧型手機業務的後續行動。

Thanks for the update on the financial impact being somewhat mitigated from the last time you updated it.

感謝您更新財務影響，與上次更新相比有所減輕。

Could you just elaborate on the timing and the magnitude of the revenue attrition that we should expect in that business, and are you still assuming it's basically China that gets impacted, or is it broader than that?

您能否詳細說明我們應該在該業務中預期的收入消耗的時間和幅度，您是否仍然認為基本上是中國受到影響，或者影響範圍是否更廣？

I'm just curious, what prompted you to reiterate that on this call.

我只是好奇，是什麼促使你在這次電話會議中重申這一點。

Thanks.

謝謝。

Well, yes, hi, Brian.

嗯，是的，嗨，布萊恩。

We've been talking about it now for almost a year and a half, ever since the transaction with Lenovo actually first occurred, where we thought that the risk profile in the business would end up being around the China factory.

自從與聯想的交易真正發生以來，我們已經討論了近一年半的時間，我們認為業務的風險狀況最終將圍繞中國工廠。

So we just thought it's appropriate to continue to update you.

所以我們只是認為繼續向您提供最新資訊是合適的。

We had a little bit of weakness in the CTG margins this last quarter, and part of that was, as we had some weakness in the China factory demand, we're taking headcount down, and they're absorbed into our operating results.

上個季度，我們的三峽集團利潤率略有下降，部分原因是，由於中國工廠的需求有些疲軟，我們正在減少員工數量，並將其納入我們的經營業績中。

Basically, what we're doing is, we're taking these -- we're just recognizing these reductions as we go.

基本上，我們正​​在做的是，我們正在採取這些——我們只是在我們前進的過程中認識到這些減少。

We still believe that the rest of the business is intact.

我們仍然相信其餘業務完好無損。

We expect to remain a key partner in Brazil, and we're already ramping up India for Lenovo.

我們希望繼續成為巴西的主要合作夥伴，並且我們已經在為聯想拓展印度市場。

So rest of the world, we're actually pretty bullish on.

所以對於世界其他地方，我們實際上非常看好。

We continue to understand that there's going to be a risk in terms of there's too much capacity in China, and that we have to recognize that's a real risk.

我們仍然明白，中國產能過剩將會帶來風險，我們必須認識到這是一個真正的風險。

We'll continue to update you.

我們將繼續為您更新最新消息。

But as you can see, we're taking that risk profile down pretty substantially.

但正如您所看到的，我們正在大幅降低風險狀況。

I think at the same time, you're seeing some of the revenue coming out of the system as evidenced by some of the comments we've made over the last five or six quarters.

我認為與此同時，您會看到一些收入來自該系統，我們在過去五到六個季度發表的一些評論證明了這一點。

Great.

偉大的。

Okay.

好的。

Thanks, Mike.

謝謝，麥克。

Your next question comes from the line of Steven Milunovich with UBS.

你的下一個問題來自瑞銀集團的史蒂文·米盧諾維奇（Steven Milunovich）。

Your line is open.

您的線路已開通。

Thank you.

謝謝。

This is Peter in for Steve.

這是彼得代替史蒂夫。

As it relates to the NEXTracker acquisition, we know that there's a lot of demand being pulled forward, as we approach the decline in the ITC in 2017.

由於它與 NEXTracker 收購相關，我們知道，隨著 2017 年 ITC 的下滑，大量需求被拉動。

How are you positioning that asset, and ramping up as the macro demand is very favorable over the short term, and then potentially setting up for a boom and bust longer term, how are you positioning that, and how do you intend to navigate around those market dynamics?

您如何定位該資產，並隨著宏觀需求在短期內非常有利而增加，然後可能為長期的繁榮和蕭條做好準備，您如何定位該資產，以及您打算如何應對這些資產市場動態？

Well, NEXTracker is increasingly global.

嗯，NEXTracker 日益全球化。

It's already global, as is most of -- a lot of our solar business.

它已經是全球性的，就像我們的大部分太陽能業務一樣。

We think that the ITC affects the US demand.

我們認為 ITC 影響了美國的需求。

That's one part of the total demand, and as we get into 2017, we'll just have to see how much of a bust it will really be.

這只是總需求的一部分，當我們進入 2017 年時，我們只需要看看它到底會減少多少。

So we think it might have a pause in overall worldwide demand, but then we think it will start heading up.

因此，我們認為全球整體需求可能會暫停，但隨後我們認為它將開始上升。

We continue to have very, very positive improvements in the cost structures of the solar systems.

我們在太陽能係統的成本結構方面繼續取得非常非常積極的改進。

They continue to come down 5% to 10% a year.

它們繼續以每年 5% 到 10% 的速度下降。

The NEXTracker system itself creates a situation where actually have an improved efficiency that's upwards of 10% out of this system, by using NEXTracker technology.

NEXTracker 系統本身創造了一種情況，透過使用 NEXTracker 技術，該系統的效率實際上提高了 10% 以上。

We just think it's a US-only -- the ITC is a US-only thing.

我們只是認為這是美國獨有的——國際貿易委員會是美國獨有的。

The demand worldwide continues to be extremely strong.

全球的需求仍然非常強勁。

The macro trend over the next 10 years is probably going to be double-digit up.

未來10年的宏觀趨勢可能會呈現兩位數成長。

We think the world is going to find ways to partnership, create ways of funding these systems, and we think that technology's going to keep getting better, where there's going to be more and more efficiency.

我們認為世界將找到合作方式，創造為這些系統提供資金的方式，我們認為技術將不斷變得更好，效率將越來越高。

We think the broader macro is extremely positive, and the only thing we see going forward is maybe a pause in the US demand in 2017.

我們認為更廣泛的宏觀面非常積極，我們認為未來唯一可能發生的事情可能是 2017 年美國需求的暫停。

Great.

偉大的。

Thanks.

謝謝。

And then as it relates to the decline in the inventory days, was that more of a result of the down-sizing of the China smartphone business, or are you seeing improvements in other areas?

那麼，就庫存天數的下降而言，這更多是由於中國智慧型手機業務規模縮小的結果，還是您看到其他領域的改善？

Hi, Peter.

嗨，彼得。

The improvement sequentially to the 6.8 turns was not at all based on any of the China smartphone demand profile.

連續 6.8 圈的改善根本不是基於中國智慧型手機需求狀況。

It in fact, was just through our broader efforts, as we get after our inventory.

事實上，這只是透過我們更廣泛的努力，正如我們在庫存後所得到的。

As we mentioned last quarter, where we actually had some stalled inventory in the system, we actually have line of sight in activities under way.

正如我們上季度提到的，系統中實際上有一些停滯的庫存，但我們實際上對正在進行的活動有視線。

There's many levers for us to drive back to getting a 7 handle, in terms of our inventory turns.

就我們的庫存週轉率而言，我們有很多槓桿讓我們回到 7 的水平。

It's going to be through better load planning, through different supplier managed inventory positions, and actually taking a harder look into our finished goods reductions, and adjusting buffers and so forth.

這將透過更好的負載計劃、透過不同的供應商管理庫存位置、實際上更仔細地研究我們的成品減少以及調整緩衝區等來實現。

We see a lot of levers in place for us to get back into a 7 handle, and that puts us back down into a 50-day type of inventory turns, or 50-day inventory structure.

我們看到有很多槓桿可以讓我們回到 7 的手柄，這讓我們回到 50 天的庫存週轉率或 50 天的庫存結構。

And again, for us, each day of inventory's roughly $60 million of cash flow.

同樣，對我們來說，每天的庫存大約有 6000 萬美元的現金流。

So we're pretty intently focused on driving further and further improvement as we move throughout this year.

因此，今年我們非常專注於推動進一步的改進。

Great.

偉大的。

Thanks, Mike and Chris.

謝謝，邁克和克里斯。

Your next question comes from the line of Andrew Huang with B. Riley.

你的下一個問題來自 Andrew Huang 和 B. Riley 的對話。

Your line is open.

您的線路已開通。

Congratulations to you and your team.

恭喜您和您的團隊。

Clearly, a lot of things went well in the quarter, but I was wondering if you could give us a little bit more color on how IEI performed relative to your expectations internally.

顯然，本季很多事情進展順利，但我想知道您是否可以向我們提供更多有關 IEI 相對於您內部預期的表現的資訊。

And then some color on how you see those margins progressing, going forward.

然後用一些顏色來說明你如何看待這些利潤的進展和未來。

I guess you have to make those comments excluding the impact of NEXTracker.

我想你的評論必須排除 NEXTracker 的影響。

Yes.

是的。

Yes, so if we look at IEI, we probably looked at a continuing erosion in end macro demand, and IEI has probably the broadest portfolio in our entire Company, so it's probably a better place to see some of that broad macro softening.

是的，所以如果我們看看IEI，我們可能會看到最終宏觀需求的持續侵蝕，而IEI 可能擁有我們整個公司最廣泛的投資組合，因此它可能是一個更好的地方來看到一些廣泛的宏觀疲軟。

I think the revenue downside from that was somewhat offset by some of the new program ramps that we're bringing in.

我認為由此帶來的收入下降在某種程度上被我們引入的一些新計劃所抵消。

But it's more costly to bring on new programs than it is to just run existing programs harder.

但實施新計劃的成本比僅僅更努力地運行現有計劃的成本更高。

So we had some -- we actually anticipated greater upside in terms of margin.

所以我們有一些——我們實際上預計利潤率會有更大的上升空間。

It actually went from 2.6% to 2.8%.

實際上從 2.6% 上升到 2.8%。

That was a little bit disappointing to us.

這讓我們有點失望。

I'd say more of the revenue was created by new programs as opposed to existing programs, so the revenue put a little pressure -- and a little bit less revenue.

我想說更多的收入是由新項目創造的，而不是現有項目，所以收入帶來了一點壓力——而且收入也少了一點。

So that's how we see it going forward, as well.

這也是我們對未來發展的看法。

If we think about taking out NEXTracker, the core business is down, but offset by a lot of new program wins that we had over the last 12 or 18 months.

如果我們考慮淘汰 NEXTracker，核心業務就會下降，但被我們在過去 12 或 18 個月贏得的許多新項目所抵消。

So we expect -- so as a result, we'll get growth going into these next quarters on the back of NEXTracker, but we'll be able to offset any of the macro implications with new program wins.

因此，我們預計，因此，我們將在 NEXTracker 的支持下在接下來的幾個季度實現成長，但我們將能夠透過新項目的勝利來抵消任何宏觀影響。

And additionally, as these new program wins come on, we do expect margins to increase sequentially.

此外，隨著這些新項目的成功，我們確實預期利潤率將持續增加。

We saw them go from 2.6% to 2.8% this quarter.

本季我們看到它們從 2.6% 上升到 2.8%。

We would expect them to increase again ex-NEXTracker next quarter.

我們預計下季度 NEXTracker 以外的數量將再次增加。

We're on a track towards increasing margins, but revenue is harder, due to the macro headwinds.

我們正朝著提高利潤率的方向前進，但由於宏觀不利因素，收入變得更加困難。

And Andrew, just to get a little more granular, we actually had anticipated seeing a 3 handle in that business this quarter.

安德魯，更具體地說，我們實際上預計本季度該業務中會出現 3 個手柄。

We still remain hampered by some of these larger significant ramps, as we're moving to drive further yield improvements, and reduce expedite fees and other ancillary costs, improved our workforce planning.

我們仍然受到其中一些較大的顯著增長的阻礙，因為我們正在努力進一步提高產量，並減少加急費和其他輔助成本，改善我們的勞動力規劃。

We have evidence in this past quarter that we're on the right path, and that's why we came out and want to make statements that we see that core business operating in its target margin range, and we're putting focused efforts to get there over the next several quarters.

上個季度的證據表明，我們正走在正確的道路上，這就是為什麼我們站出來並希望發表聲明，我們認為核心業務在其目標利潤範圍內運營，我們正在集中努力實現這一目標在接下來的幾個季度中。

Okay.

好的。

Great.

偉大的。

Thank you.

謝謝。

And then on Nike, just a couple questions there.

關於耐吉，只有幾個問題。

Is it shoes only, or apparel as well?

只買鞋子還是買衣服呢？

And maybe you could comment on when we could start to see some revenue contribution from this relationship?

也許您可以評論一下我們什麼時候可以開始看到這種關係帶來的一些收入貢獻？

And then for those of us who aren't as familiar with Nike, do you have an idea of how many pairs of shoes they make every year?

對於我們這些不太熟悉耐吉的人來說，您知道他們每年生產多少雙鞋嗎？

Listen, I'm going to stay away from the details of how many shoes they're going to sell.

聽著，我不會透露他們將出售多少鞋子的細節。

But we're pretty excited about the relationship, and it's a real evidence of our whole sketch-to-scale business model that we're driving.

但我們對這種關係感到非常興奮，這是我們正在推動的整個從草圖到規模的商業模式的真實證據。

We want to be able to influence whole supply chains, worldwide supply chains, that have a lot of different technologies in them, and a lot of different innovations as it relates to how they go to market, how do they bring product to their customers, so it's a really exciting relationship for us.

我們希望能夠影響整個供應鏈，全球供應鏈，其中有許多不同的技術，以及許多不同的創新，因為這關係到它們如何進入市場，如何將產品帶給客戶，所以這對我們來說是一種非常令人興奮的關係。

We think -- and is it only shoes?

我們想──這只是鞋子嗎？

We started with Nike probably 2.5, maybe 3 years ago, with the Nike Fuelband, and we've been continuing to work with Nike on manufacturing ever since that period.

我們大約在 2.5 年前，也許 3 年前就開始與 Nike 合作開發 Nike Fuelband，從那時起我們就一直在繼續與 Nike 進行製造合作。

So we don't know what's going to come next.

所以我們不知道接下來會發生什麼事。

We started with Fuelbands.

我們從 Fuelbands 開始。

There's obviously talk around shoes and some of the Flyknit technology that they're coming out with.

顯然，人們正在談論鞋子和他們即將推出的一些 Flyknit 技術。

But I think they're a very advanced company in terms of thinking about their supply chain in terms of what products they want to bring to market, in terms of how many products they want to bring to market that are connected, and which areas they want to go in.

但我認為他們是一家非常先進的公司，在考慮他們的供應鏈方面，他們想把什麼產品推向市場，他們想把多少產品推向市場，以及他們在哪些領域想進去。

And it's just an exciting partner for us to have, to be aligned with that kind of intelligent, innovative, strategic thinking kind of Company.

對我們來說，它是一個令人興奮的合作夥伴，能夠與這種智慧、創新、策略思維的公司保持一致。

We're pretty excited.

我們非常興奮。

We're working with them today in our Milpitas innovation center with some shoes.

今天我們在米爾皮塔斯創新中心與他們合作開發一些鞋子。

We'll be doing some customization as well in the United States.

我們還將在美國進行一些客製化。

And where it goes from there, we think there's just a lot of possibilities as they drive towards their goal of $50 billion.

從那裡開始，我們認為在他們朝著 500 億美元的目標前進的過程中存在著許多可能性。

Thanks a lot.

多謝。

Your next question comes from the line of Mark Delaney with Goldman Sachs.

你的下一個問題來自高盛的馬克·德萊尼（Mark Delaney）。

First question was on the EBIT margin guidance for next quarter.

第一個問題是關於下個季度的息稅前利潤率指引。

By my math, the implied margin guidance is about 3.3% and I think maybe mix is some of that, but it seems like there's some margin improvement, even within the different segments.

根據我的計算，隱含的利潤指引約為 3.3%，我認為可能是其中的一部分，但即使在不同的細分市場中，利潤似乎也有所改善。

I know you already talked a little bit about industrial.

我知道您已經談過一些工業方面的問題。

Are there any other segments that you're expecting to see margin improvement that's getting you to that 3.3% guide for next quarter?

您是否期望其他任何細分市場的利潤率有所改善，從而使下季度達到 3.3% 的目標？

Hi, Mark.

嗨，馬克。

It's Chris.

是克里斯。

Thanks for the question.

謝謝你的提問。

Certainly, the guide at the midpoint puts you at around a 3.3%.

當然，中間的指導值約為 3.3%。

We're actually really pleased with the continued discipline the Company's been operating in.

事實上，我們對公司持續遵守的營運紀律感到非常滿意。

You see some improving operational execution, we'll get some contributions from the acquisitions.

你會看到營運執行力有所改善，我們將從收購中得到一些貢獻。

You see a richer mix forming and the improvements that we anticipated within IEI are also going to help step in there.

您將看到更豐富的混合成型，我們預期 IEI 內部的改進也將有助於實現這一目標。

You also see some improvements in margin in our CTG group, as we move forward.

隨著我們的前進，您還會看到我們 CTG 集團的利潤率有所改善。

That core business continues to drive a richer mix, and continues to see seasonal strength.

該核心業務繼續推動更豐富的組合，並繼續看到季節性優勢。

So overall, even with a midpoint of revenue sequentially up 3%, you're seeing operating profit at the midpoint up 10%, hitting a 3.3%.

因此，整體而言，即使收入中點連續成長 3%，您也會看到營業利潤中點成長 10%，達到 3.3%。

Again, just meaningfully showing our progress that we're making as a Company.

再一次，只是有意義地展示我們作為一家公司所取得的進步。

So for us, it's going to be about managing that portfolio, that mix truly does have a benefit there.

所以對我們來說，這將是關於管理該投資組合，這種組合確實有好處。

But in terms of operating profit dollars, we're going to up to a midpoint at $215 million, off of $196 million this past quarter.

但就營業利潤而言，我們將從上個季度的 1.96 億美元增至 2.15 億美元的中位數。

That's helpful.

這很有幫助。

And related to that, HRS is running above your target margins.

與此相關的是，HRS 的運行速度高於您的目標利潤。

Is there some sort of potential headwind in HRS that we should have in mind going forward, that maybe brings margins back into that 5% to 7% range, or is there the potential for the HRS margins to sustain themselves above 7%?

我們應該牢記未來 HRS 是否存在某種潛在的逆風，這可能會使利潤率回到 5% 至 7% 的範圍，或者 HRS 利潤率是否有可能維持在 7% 以上？

We're not going to get too far out in front here, but we're definitely pleased with the execution and performance from that broad team across medical, across automotive.

我們不會在這裡走得太遠，但我們對整個醫療和汽車領域的廣泛團隊的執行和表現感到非常滿意。

They're perfectly positioned in terms of strategic assets and capabilities.

他們在戰略資產和能力方面處於完美位置。

We're ramping numerous new programs, and numerous new products, and amidst that, they continue to execute very well.

我們正在推出大量新計劃和新產品，其中，它們繼續執行得很好。

Solid execution, couple that with the strong contribution from MCi, puts you at that type of a margin profile, and we'll look to continuously update you each quarter as we migrate along with that business.

紮實的​​執行力，再加上 MCi 的強大貢獻，讓您獲得這樣的利潤狀況，隨著業務的遷移，我們將在每個季度不斷為您提供最新資訊。

Okay.

好的。

Just lastly from me on revenue growth, specifically on IEI and HRS, excluding NEXTracker, both those segments are running at sub-10% year-over-year revenue growth in the December quarter, and I know 10% I think had been the goal for the full year, and now running below those levels.

最後我想說的是營收成長，特別是 IEI 和 HRS（不包括 NEXTracker），這兩個細分市場在 12 月季度的營收年增低於 10%，我知道 10% 是我的目標是全年的情況，現在都低於這些水平。

Can you just talk about, on an organic basis, what sorts of things need to happen to get back into that 10%-plus range, and when maybe you think you can achieve it?

您能簡單談談，在有機的基礎上，需要發生哪些事情才能回到 10% 以上的範圍，以及您認為什麼時候可以實現這一目標？

Yes.

是的。

We have an objective on a year-on-year basis to grow this about 10% a year as we've had for the last couple years.

我們的目標是像過去幾年一樣每年增長 10% 左右。

We had some pretty strong growth, particularly in IEI last year, which was over 17%, and HRS was pretty close to the double digits.

我們取得了相當強勁的成長，尤其是去年的 IEI，成長超過 17%，HRS 非常接近兩位數。

I think some years are going to be a little bit slower, as a result of some macro, which might cause it to be below 10% in some years, and I think some years it's going to be a little bit higher.

我認為，由於某些宏觀因素，有些年份會慢一些，這可能會導致某些年份低於 10%，而我認為有些年份會稍微高一些。

So I think it's going to depend a little bit in terms of the mix of business, the macro headwinds that we're hitting, or the macro tailwinds, from that standpoint.

因此，我認為從這個角度來看，這將在一定程度上取決於業務組合、我們遇到的宏觀逆風或宏觀順風。

But we remain quite committed and believe that we've got an organic system, and we also favor putting our resources and M&A dollars into these areas, as well, to make sure we have a long-term sustainable growth model at about 10%.

但我們仍然非常堅定，相信我們已經有了一個有機的系統，我們也贊成將我們的資源和併購資金投入這些領域，以確保我們擁有約 10% 的長期永續成長模式。

So we still think we're going to -- we're in those long-term trajectories.

因此，我們仍然認為我們將處於這些長期軌跡中。

This year, we're seeing a lot of headwinds come, particularly in IEI from the macro, and I think it's pushing us back a little bit.

今年，我們看到了很多阻力，特別是來自宏觀的 IEI，我認為這讓我們有點倒退。

So I think it remains our long-term target on a year-on-year basis.

所以我認為這仍然是我們同比的長期目標。

It may be a little bit up.

可能會有點高。

It may be a little bit down.

可能會有點下降。

But we continue to be pretty focused on being able to achieve those numbers.

但我們仍然非常專注於實現這些數字。

The thing I will remind you is that when we book these businesses in IEI and HRS, they tend not to be perishable revenue.

我要提醒您的是，當我們在 IEI 和 HRS 中記錄這些業務時，它們往往不是易腐爛的收入。

They might go down a little bit, just because of what's going on in the economy, but a lot of times, they come back and they don't disappear.

它們可能會稍微下降，只是因為經濟狀況，但很多時候，它們會回來並且不會消失。

They're all long product life cycles.

它們都是長生命週期的產品。

So you get some shifting in some of the programs, but they don't go away much, and they're actually pretty stable.

因此，某些程式會發生一些變化，但它們不會消失太多，而且實際上相當穩定。

So we still feel that we're going to end up bouncing around the mean over these multi-year periods of 10% growth.

因此，我們仍然認為，在這些多年增長 10% 的時期內，我們最終將在平均值附近波動。

Thank you.

謝謝。

Your next question comes from the line of Jim Suva with Citi.

您的下一個問題來自花旗銀行的吉姆·蘇瓦 (Jim Suva)。

Your line is open.

您的線路已開通。

Congrats.

恭喜。

Shifting gears a little bit to the INS or Integrated Network Solutions segment, can you help us a little bit with that?

稍微轉向 INS 或整合網路解決方案領域，您能幫我們一點忙嗎？

I mean, the profitability was strong, as far as within your goal range, and quarter-over-quarter an improvement, but year-over-year it was still down, and the outlook still looks a little challenged.

我的意思是，就您的目標範圍而言，盈利能力很強，並且環比有所改善，但同比仍然下降，前景看起來仍然有點挑戰。

Is this some customer transitions, ends of life there?

這是一些客戶轉變、生命終點嗎？

Why is that segment seeing so much top line challenges in the INS segment?

為什麼 INS 細分市場面臨如此多的頂線挑戰？

Well, Jim, if you look at carrier spending, if you look at overall network spending, I think, on average, you're going to find that you have negative growth for this year projected.

好吧，吉姆，如果你看看運營商支出，如果你看看整體網路支出，我認為，平均而言，你會發現今年預計會出現負增長。

I think Gartner just recently came out with a report looking at this industry, coming out with about a minus 7% forecast.

我認為 Gartner 最近剛發布了一份關於該行業的報告，預測約為負 7%。

So I think just in general, it's challenged, and I think to have revenue growth in a challenged market is very, very difficult.

所以我認為總的來說，它面臨著挑戰​​，而且我認為在充滿挑戰的市場中實現收入成長是非常非常困難的。

We were up over 10% this last quarter, but not with any help from the macro.

上個季度我們的股價上漲了 10% 以上，但並沒有得到宏觀經濟的任何幫助。

In fact, the macro was more of a headwind, but all on the back of new programs.

事實上，宏觀政策更多的是逆風，但都是在新計畫的支持下。

And if you look going forward, we've got another sequential quarter of mid to high digit growth.

如果你展望未來，我們將迎來另一個連續季度的中高數位成長。

So in light of the fact that you've probably got a macro that's going down about 5% to 7%, and the fact that we're growing the last couple quarters pretty significantly, all on the back of new programs, is a challenge.

因此，考慮到宏觀經濟可能會下降約 5% 到 7%，而且我們在過去幾個季度的成長非常顯著，所有這些都是在新計畫的支持下進行的，這是一個挑戰。

And as long as the macro doesn't yield a positive trajectory in that business, it's going to be difficult to have anything more significant than that.

只要宏觀經濟無法在該業務中產生積極的軌跡，就很難有比這更重要的事情了。

Jim, I'd just highlight as well that INS for us, it's an important piece of the portfolio, it provides great capital efficiency.

吉姆，我還要強調一下，INS 對我們來說是投資組合的重要組成部分，它提供了很高的資本效率。

If you think back to this past quarter, we beat our expectations for that segment, growing at 12%, and then the guide for next quarter is mid to high single digits up.

如果你回想一下上個季度，我們超出了對該細分市場的預期，成長了 12%，然後下個季度的指導值將出現中高個位數成長。

And so if you just pick a midpoint of wherever that could be, that's going to put it roughly flat year-over-year in the December quarter.

因此，如果你只選擇可能的中點，那麼 12 月季度的年比情況將大致持平。

And even more important, is if you look at that profitability element that you had highlighted, it moved up into the target margin range, but even greater was that it has grown sequentially, operating dollars greater than 10%, and then year-over-year, greater than 10%.

更重要的是，如果你看一下你強調的獲利能力因素，它會上升到目標利潤範圍，但更重要的是它連續增長，營業收入超過 10%，然後同比-年增長超過10%。

So it's operating very well, amidst a very challenging backdrop.

因此，在充滿挑戰的背景下，它運作得非常好。

You think back to how we're positioned across that space, I think we have a really nice footprint, that will accrue to us meaningful wins across the different areas that we serve, and we're operating it pretty well.

你回想一下我們在這個領域的定位，我認為我們擁有非常好的足跡，這將為我們在我們服務的不同領域帶來有意義的勝利，而且我們運作得很好。

Thank you.

謝謝。

Just a quick follow-up.

只是快速跟進。

Am I correct, like for the Nike relationship, it's more like currently going to be custom shoes like the McNamara special limited edition shoes?

我是否正確，就像耐吉的關係一樣，目前更像是訂製鞋，例如麥克納馬拉特別限量版鞋？

Or is it like broadline shoes across everything, just so we can bracket our revenue expectations for this.

或者它就像所有東西上的寬線鞋一樣，只是為了讓我們可以對此進行收入預期。

I know long-term, it can change, but just getting a feel, because I know they do custom stuff as well as more broadline apparel, wearables.

我知道從長遠來看，它可能會改變，但只是感覺一下，因為我知道他們做客製化產品以及更廣泛的服裝、可穿戴設備。

I think it's a little bit too early to tell and I think maybe both those, you should think about them as possibilities.

我認為現在說還為時過早，我認為也許這兩種情況，你應該將它們視為可能性。

So on a volume basis, there may be a need for more and more automation in region, that can get to customers quickly, so that you can hit those product cycles or those consumer cycles at the right time, with the right shoe, with the right color, even if it's in volume.

因此，從數量上看，該地區可能需要越來越多的自動化，這樣可以快速接觸客戶，以便您可以在正確的時間，用正確的鞋子，用正確的方式來滿足這些產品週期或消費者週期.正確的顏色，即使在體積上。

I think innovating around go-to-market, new go-to-market strategies with the consumer, as a result of a relationship with Flex and Nike, are also possibilities.

我認為，由於與偉創力和耐吉的合作關係，圍繞進入市場進行創新，與消費者建立新的進入市場策略也是可能的。

So I think you ought to think that both are within scope and that -- but we're going to need a lot more time to work through the whole strategy with Nike, before we know exactly where we're going to participate.

所以我認為你應該認為兩者都在範圍之內，而且在我們確切知道我們將參與哪些領域之前，我們將需要更多的時間來與耐吉一起制定整個策略。

And over time we may be participating in those two places, and in others.

隨著時間的推移，我們可能會參與這兩個地方以及其他地方。

So we'll just have to see how it happens over time.

所以我們只需要看看隨著時間的推移它會如何發生。

Great.

偉大的。

Congratulations.

恭喜。

Your next question comes from the line of Sean Hannan with Needham & Company.

您的下一個問題來自 Needham & Company 的 Sean Hannan。

Your line is open.

您的線路已開通。

Yes, thanks for taking my question here, folks.

是的，謝謝你們在這裡提出我的問題，夥計們。

So just want to see if I can get back to IEI for a moment.

所以只是想看看我是否可以暫時回到 IEI。

So there was some RAM challenges in the quarter.

因此，本季存在一些 RAM 挑戰。

There was some macro weakness.

宏觀經濟出現一些疲軟。

Can you provide a little bit more color in terms of how much were the RAM challenges and the extent to which those are continuing to be a headwind versus the macro?

您能否提供更多關於 RAM 挑戰的程度以及這些挑戰相對於宏的逆風程度的資訊？

So that's Part A.

這就是 A 部分。

And then Part B, just want to see if we can get some perspective.

然後是 B 部分，只是想看看我們是否能獲得一些觀點。

I think that IEI as a general segment, you folks should have a better line of sight into the business than, say, arguably, something like INS or consumer, and thus perhaps the ability to manage margin performance there.

我認為，IEI 作為一個一般細分市場，你們應該比 INS 或消費者之類的業務有更好的視野，因此也許有能力管理那裡的利潤績效。

So that being said, can you share some thoughts on this, the challenges that you had in the quarter and that are continuing, whether these results could cause any new considerations to managing the IEI portfolio?

話雖這麼說，您能否分享一些對此的想法、您在本季度遇到的挑戰以及仍在持續的挑戰，這些結果是否會引起管理 IEI 投資組合的任何新考慮？

Thanks.

謝謝。

Hi, Sean.

嗨，肖恩。

There's a lot there so let me try to address that in each of those parts, and you can come back in and clarify if I didn't address it.

其中有很多內容，所以讓我嘗試在每個部分中解決這個問題，如果我沒有解決它，您可以回來澄清。

Part A, regarding the component pieces of the underperformance of IEI, in the prepared remarks, we tried to isolate it to demonstrate there's two pieces.

A 部分，關於 IEI 表現不佳的組成部分，在準備好的評論中，我們試圖將其隔離以證明有兩個部分。

One, more significantly, has been the hampering underperformance around the operational execution around a couple of our large ramps that we've been under.

更重要的是，我們一直在幾個大型坡道周圍的營運執行方面表現不佳。

That's been evidenced for a couple of quarters now.

幾個季度以來，這一點已經得到證實。

We had gone out last quarter, and had indicated that we would be able to get that under control, and pushed up into the 3% range.

我們上個季度就已經表明，我們將能夠控制住這一情況，並將其提高到 3% 的範圍。

We had some modest improvement on the core business, went from 2.6% to 2.8%.

我們的核心業務略有改善，從 2.6% 升至 2.8%。

Now if we didn't have the 3 handle and above that we were anticipating, so if you think about it, it probably cost us anywhere from $6 million to $8 million in underperformance operationally driven during the period.

現在，如果我們沒有達到我們預期的 3 及以上手柄，那麼如果您考慮一下，我們可能會在此期間因營運驅動的表現不佳而損失 600 萬至 800 萬美元。

What we also wanted to note was that we were anticipating some strength in terms of some revenue accretion that didn't produce itself.

我們還想指出的是，我們預計一些收入成長會出現一些成長，但這些成長並沒有產生。

It goes back to your Part B of line of sight.

它會回到您視線的 B 部分。

While there is line of sight, and you do have longer product life cycles, these are still susceptible to demand shifts, while we're ramping, while it defers ramps, and so forth.

雖然存在視線，您確實有更長的產品生命週期，但這些仍然容易受到需求變化的影響，而我們正在加速，而它推遲了加速，等等。

There's a lot of moving parts here, and the last forecast cycle we went through, we saw incrementally greater erosion than what we had seen to date.

這裡有很多變化的部分，在我們經歷的最後一個預測週期中，我們看到了比迄今為止所看到的逐漸更大的侵蝕。

We've been managing that, because we understood we have other ramps that would complement where we were going.

我們一直在管理這一點，因為我們知道我們還有其他坡道可以補充我們要去的地方。

So we just wanted to indicate that the macro is definitely weighing heavier there, and that our operational execution is going to be improving, to drive us higher into that space.

因此，我們只是想表明，宏觀因素在這方面的影響肯定更大，而且我們的營運執行力將會得到改善，從而推動我們進入這個領域。

It goes back to working aggressively on action plans.

這可以追溯到積極制定行動計劃。

I highlighted earlier some granular elements around improving workforce planning, different yield improvements, lowering expedite fees and the like, all of which have put pressure on us here.

我之前強調了一些關於改善勞動力規劃、不同產量改進、降低加急費用等的細粒度要素，所有這些都給我們帶來了壓力。

So it's like a two-sided coin for us.

所以這對我們來說就像一枚雙面硬幣。

As a negative as we sit today, and we're not pleased with having the performance where it's at.

就我們今天的表現而言，這是一個負面因素，我們對目前的表現並不滿意。

We're very focused, and we see that as being a meaningful lever to contribute to margin and operating profit expansion, as we move forward.

我們非常專注，我們認為隨著我們的前進，這是一個有意義的槓桿，可以為利潤率和營業利潤的擴張做出貢獻。

Hopefully that helps.

希望有幫助。

Okay.

好的。

So it doesn't sound like there necessarily are specific concerns or scenarios, hey, look, we have some incremental challenges here that cause us to look at a new perspective of how we're approaching the IEI scenario.

因此，聽起來不一定有特定的問題或場景，嘿，看，我們這裡遇到了一些增量挑戰，這使我們從新的角度看待如何處理 IEI 場景。

It doesn't sound like that's the big picture case, at least at this time.

聽起來這並不是大局，至少目前是這樣。

Actually I think it's just the reverse.

事實上我認為恰恰相反。

What we've seen is, we've seen margin expansion this last quarter.

我們所看到的是，上個季度我們看到了利潤率的擴張。

We expect margin expansion ex-NEXTracker this next quarter.

我們預計下個季度的 NEXTracker 利潤率將擴大。

We've doubled down into a place where we believe has a very positive macro trend of double-digit growth for the next 10 years.

我們已經加倍努力，相信未來 10 年宏觀趨勢將呈現非常正面的兩位數成長。

Part of the reason we're having some challenges in terms of hitting our margin targets, because of the amount of ramps, when the amount of ramps are hitting simultaneously with the reduction in the core business, it makes it more challenging from a margin standpoint.

我們在實現利潤率目標方面遇到一些挑戰的部分原因是由於產能增加的數量，當產能增加的同時與核心業務的減少同時發生時，從利潤的角度來看，這使得它更具挑戰性。

Even given all that, we end up with -- and we're talking what's up to 100 different ramps because to grow this IEI business, you grow it little by little.

即使考慮到所有這些，我們最終還是會得到——我們正在談論多達 100 個不同的坡道，因為要發展 IEI 業務，你需要一點一點地發展它。

It doesn't happen in real big lumps.

這種情況不會發生在真正的大塊中。

But in spite of all that, we've got margin improvement.

但儘管如此，我們的利潤率還是有所提高。

We've got operating profit increase.

我們的營業利潤增加。

We would expect to see the same operating profit and margin increase next year -- next quarter.

我們預計明年（即下個季度）營業利潤和利潤率將出現同樣的成長。

We would expect the NEXTracker acquisition to layer onto it a strong position, a number-one market position potentially, in a growing market.

我們預期 NEXTracker 的收購將使其在不斷成長的市場中佔據強大的地位，甚至可能成為第一的市場地位。

So we actually feel the reverse.

所以我們實際上有相反的感覺。

It's got some macro headwinds right now that won't last forever, and even if they do, we'll get up to speed in our ramps and we'll turn it into growth.

目前存在一些宏觀阻力，但這些阻力不會永遠持續下去，即使它們持續存在，我們也會加快步伐，並將其轉化為成長。

So the overall -- we don't feel uncomfortable with the margin range that we have stated there.

因此，總的來說，我們對我們在那裡所說的利潤範圍並沒有感到不舒服。

We expect to get into the 4% range.

我們預計會進入 4% 的範圍。

We have line of sight to that.

我們已經看到了這一點。

So it's just the opposite.

所以事實恰恰相反。

We continue to see IEI as a good business model, one that we're performing very well in.

我們仍然將 IEI 視為一種良好的商業模式，我們在該模式中表現得非常出色。

We've got a lot of opportunities with a lot of new customers.

我們有很多新客戶的機會。

We're in the right markets.

我們處於正確的市場。

We actually -- and like Chris said, from an investor standpoint, it gives us a place for margin expansion going forward.

實際上，就像克里斯所說，從投資者的角度來看，它為我們提供了未來利潤擴張的空間。

Sure.

當然。

There was a devil's advocate question to that, so thanks very much.

這是一個魔鬼代言人的問題，所以非常感謝。

Great perspective.

很棒的視角。

Your next question comes from the line of Matt Sheerin with Stifel Nicolaus.

你的下一個問題來自 Matt Sheerin 和 Stifel Nicolaus 的對話。

Your line is open.

您的線路已開通。

Just a couple of follow-ups from earlier questions.

只是之前問題的幾個後續內容。

First on the Lenovo Motorola relationship, I understand why you're bringing down production and cutting costs there in China.

首先，關於聯想與摩托羅拉的關係，我理解為什麼你們要在中國降低產量並削減成本。

It seems like that's mostly commensurate with the lower demand trends that you're seeing.

這似乎與您所看到的需求下降趨勢基本相符。

But is it more than that?

但還不止於此嗎？

Are you basically trying to phase that down, and have you had conversations with Lenovo about either moving that business out to their own operations, or just bringing that down, because it's really not meeting your returns and margin goals at this point?

您是否基本上正在嘗試逐步減少該業務，您是否與聯想進行過對話，討論是否將該業務轉移到自己的運營中，或者只是將其減少，因為它目前確實無法滿足您的回報和利潤目標？

Yes, I mean, it's just going to evolve, Matt.

是的，我的意思是，它會不斷發展，馬特。

It's one of those things where we work with the customer all the time.

這是我們一直與客戶合作的事情之一。

There's certain product cycles that we have to respect, that they have to respect.

我們必須尊重某些產品週期，他們也必須尊重。

You can't just pull business out and move it to somewhere else when it's in the midst of a product cycle.

當業務處於產品週期期間時，您不能只是將其撤出並轉移到其他地方。

There's a lot of competence in that operation.

該操作有很多能力。

So at this point in time, we're just taking the size of it down.

所以在這個時候，我們只是縮小它的大小。

The overall cumulative capacity in China is probably too much.

中國整體累計產能恐怕太多了。

If I think about Lenovo operations and Flex operations, this is what we've talked about now for many, many -- not, many, many, but two years.

如果我想想聯想的營運和 Flex 的運營，這就是我們現在談論的很多很多——不是很多很多，而是兩年了。

And I just think it's playing its way out, and we continue to make money as it continues to down-side, and we're absorbing any costs associated with it, which includes moving equipment to other factories.

我只是認為它正在走出困境，隨​​著它繼續下行，我們繼續賺錢，我們正在吸收與之相關的任何成本，其中包括將設備轉移到其他工廠。

We're doing all that simultaneous, as this thing ramps down.

隨著事情的進展，我們正在同時做所有這些事情。

Believe it or not, it's not a death by 1,000 cuts.

不管你信不信，這並不是被砍一千刀而死。

We're managing the business extremely well, as it moves down.

隨著業務的下滑，我們的業務管理得非常好。

We've got a great partnership with Lenovo, and while we're doing that simultaneously, we're ramping in other places like India.

我們與聯想建立了良好的合作關係，在我們同時這樣做的同時，我們也在印度等其他地方加強。

We're actually pleased with the relationship.

我們實際上對這種關係感到滿意。

It continues to move and evolve as it should because there's new considerations with Lenovo being the owner, and over time, we expect to be a very strong business partner for them and them a customer for us.

它繼續按其應有的方式發展和發展，因為聯想作為所有者有新的考慮，隨著時間的推移，我們期望成為他們的非常強大的業務合作夥伴，他們成為我們的客戶。

Okay.

好的。

Great.

偉大的。

And on INS, regarding your commentary just on lackluster demand across the board there, I know we've been hearing from you folks and other suppliers for two or three quarters about telecom infrastructure spending, specifically the LTE build out in China coming back after a pause.

在INS 上，關於您對那裡整體需求低迷的評論，我知道我們已經在兩到三個季度內收到你們和其他供應商關於電信基礎設施支出的評論，特別是中國的LTE 建設在經過一段時間的恢復後又回來了。暫停。

It doesn't look like we've really seen signs of that.

看起來我們並沒有真正看到這種跡象。

What are you seeing?

你看到什麼了？

Obviously you have a lot of exposure there.

顯然你在那裡有很多曝光率。

What are you seeing in the China telecom market, and then other geographies there, as well?

您對中國電信市場以及其他地區的電信市場有何看法？

So we see the ramp in telecom to be below expectations of where we would have been six months ago.

因此，我們認為電信業的成長低於六個月前的預期。

So I think it's a more negative growth demand environment, if I look at the total market.

因此，如果我看看整個市場，我認為這是一個更負成長的需求環境。

So we'd say it's below expectations.

所以我們會說它低於預期。

So we're actually expecting recovery in this back half, and we don't think we'll see it.

所以我們實際上預計後半場會有所恢復，但我們認為不會看到這一點。

Any signs that it might turn in the March quarter?

有任何跡象表明情況可能會在三月季度出現逆轉嗎？

Sorry, say again?

對不起，再說一次？

Just any signs that you might see that turn in the March quarter, get pushed out a quarter?

有任何跡象表明您可能會在三月的季度看到這種轉變，並且被推遲一個季度嗎？

No, we don't think so, and we're just going to assume that demand's remained muted for the time being, and we're just pretty happy and pretty pleased that we've had enough bookings in the pipeline.

不，我們不這麼認為，我們只是假設需求暫時保持低迷，我們非常高興並且非常高興我們已經有足夠的預訂。

Because it takes a long time to get these things going, but we're pleased we've had enough bookings in the pipeline that we show positive growth for both Q2 and Q3.

因為這些事情需要很長時間才能完成，但我們很高興我們已經有足夠的預訂，我們在第二季和第三季都顯示出積極的成長。

So we'll continue to work that, and luckily, we have a strong book of business.

因此，我們將繼續努力，幸運的是，我們擁有強大的業務記錄。

So we'll rely on that to offset some of the tough macro.

因此，我們將依靠它來抵消一些艱難的宏觀影響。

Okay.

好的。

Thanks a lot.

多謝。

Operator, looks like we have time for one final question.

接線員，看來我們還有時間回答最後一個問題。

Your final question comes from the line of Osten Bernardez with Cross Research.

你的最後一個問題來自 Cross Research 的 Osten Bernardez。

Your line is open.

您的線路已開通。

I guess one question could touch back on the IEI business.

我想有一個問題可能會涉及 IEI 業務。

Can you sort of point to any specific types of end markets?

您能指出任何特定類型的終端市場嗎？

I understand it sounds like it was broad based, but can you point to any specific examples of what were mostly impacted by the macro pressures?

我知道這聽起來基礎很廣泛，但您能否指出一些具體的例子來說明哪些因素主要受到宏觀壓力的影響？

That's a really tough question.

這是一個非常棘手的問題。

These guys have about 400 customers, and they're in about everything.

這些人大約有 400 名客戶，幾乎無所不包。

A lot of the other business units were able to have very specific cause and effects.

許多其他業務部門都有非常具體的因果關係。

So like, did the carrier demand come back in the US.

就像美國的營運商需求回來了一樣。

We can be very causal about what's creating the downturn, or maybe gaming didn't sell through this year.

我們對於造成經濟低迷的原因可能非常有因果關係，或者遊戲今年的銷售情況可能不佳。

Maybe the cycle was wrong.

也許循環是錯的。

We have a lot of business where you can directly affect a cause.

我們有很多業務，您可以直接影響某個事業。

But when you have 400 customers, you have what I said is almost 100 ramps going on right now.

但當你有 400 位顧客時，你現在就有我所說的近 100 個坡道在運行。

It's just -- we can't pick it on any one thing, but if we think about what represents the broad macro better than anything else, we think it's our IEI business.

只是 - 我們不能在任何一件事上挑剔，但如果我們考慮什麼比其他任何事情更能代表宏觀宏觀，我們認為這是我們的 IEI 業務。

And we can say, if we just look across like everything, it's just a general softness all the way through.

我們可以說，如果我們只是像一切一樣看待，那隻是一種普遍的柔軟。

Okay.

好的。

And just the last question from me is just, with respect to the Nike program, on a broader basis, what's your aim in attracting similar customers, or customers that are not outside of the electronics or technology realm going forward?

我的最後一個問題是，關於耐吉計劃，從更廣泛的角度來看，你們吸引類似客戶或未來不屬於電子或技術領域的客戶的目標是什麼？

So one thing that the amount of electrification in the world, the amount of smart products in the world that are going into what's not typically electronic products, that are now moving forward, whether it's anything from a shoe to a shirt to a door lock is tremendous.

因此，世界上電氣化的數量，世界上非典型電子產品的智慧產品的數量，這些產品正在向前發展，無論是從鞋子到襯衫再到門鎖的任何東西，都是如此巨大的。

So you're getting a tremendous amount of this electrification of the business.

因此，您將獲得大量的業務電氣化。

As we look forward, the value to us is if we can create more value for these customers, whether it's automation or engineering, or making a non-connected product connected, or providing electrification where they're more traditionally a mechanical type Company, all these create situations where we're adding more value to the company, and if we add more value to the company, we will end up with a richer margin profile, a richer customer engagement.

正如我們所期望的那樣，對我們來說，價值在於我們能否為這些客戶創造更多價值，無論是自動化還是工程，或者使非互聯產品互聯，或者在傳統上是機械類型公司的情況下提供電氣化，所有這些創造了我們為公司增加更多價值的情況，如果我們為公司增加更多價值，我們最終將獲得更豐富的利潤狀況和更豐富的客戶參與度。

We get a great [lens] across -- we have 12 different areas, 12 different industries where we have $1 billion of business or more.

我們有一個很好的視角——我們有 12 個不同的領域、12 個不同的產業，我們在這些領域擁有 10 億美元或更多的業務。

And we see a tremendous amount of convergence of technologies across -- very similar technologies across all those 12 different industries, whether it's the car going into the consumer, or like the door lock, like I said.

我們看到大量技術的融合——所有 12 個不同行業的技術非常相似，無論是進入消費者的汽車，還是門鎖，就像我說的那樣。

It puts us into a fabulous position where we have almost 3,000 design engineers that can actually help engineer solutions, and to leverage the geographic footprint, and leverage all the technologies we have, everything from mechanical all the way to automation technologies.

它使我們處於一個絕佳的位置，我們擁有近 3,000 名設計工程師，他們實際上可以幫助設計解決方案，並利用地理足跡，並利用我們擁有的所有技術，從機械一直到自動化技術。

So between all that, it just puts us in a great position to be a real value-added supplier, and what we like about that is, we like creating value for our customers, but we also like having a richer experience, so we can create more margins for our investors.

因此，除此之外，它使我們處於成為真正的增值供應商的有利地位，我們喜歡這一點的是，我們喜歡為客戶創造價值，但我們也喜歡擁有更豐富的經驗，這樣我們就可以為我們的投資者創造更多的利潤。

Thank you.

謝謝。

Great.

偉大的。

We wanted to thank everybody for joining us.

我們要感謝大家加入我們。

We know there are multiple other companies also reporting today, so we appreciate your time and interest.

我們知道今天還有多家其他公司也發布了報告，因此我們感謝您的時間和關注。

This concludes the conference call.

電話會議到此結束。

This concludes today's conference call.

今天的電話會議到此結束。

You may now disconnect.

您現在可以斷開連線。