Flex Ltd (FLEX) 2017 Q2 法說會逐字稿

Good afternoon, and welcome to Flex second-quarter FY17 earnings conference call.

下午好，歡迎參加 Flex 2017 財年第二季財報電話會議。

Today's call is being recorded.

今天的通話正在錄音。

(Operator Instructions)

（操作員說明）

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

此時，我想將電話轉給 Flexxtronics 投資者關係副總裁 Kevin Kessel 先生進行開場發言和指示。

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 second-quarter FY17 ended September 30, 2016.

謝謝，歡迎參加偉創力的電話會議，討論截至 2016 年 9 月 30 日的 2017 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.

今天與我一起出席的是我們的執行長 Mike McNamara 和財務長 Chris Collier。

Today's call is being webcast 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記錄，其中包含前瞻性陳述，這些陳述基於當前的預期和假設，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，包括我們的當前報告、年度報告和季度報告。

If this call references non-GAAP financial measures for the current period, they can be found in our appendix slides.

如果本次電話會議引用了當期的非公認會計準則財務指標，則可以在我們的附錄投影片中找到它們。

Otherwise, these measures are located on the Investor Relations section of our website, along with the required reconciliation to the most comparable GAAP financial measures.

否則，這些措施以及與最具可比性的公認會計準則財務措施所需的調節一起位於我們網站的投資者關係部分。

Before I hand the call over to Chris, I want to point out that commonly referred to acronyms for each of our four business groups, along with their definitions, are mentioned at the bottom of our disclosure slide.

在將電話交給克里斯之前，我想指出，我們的揭露幻燈片底部提到了我們四個業務集團中每個業務集團的常用縮寫詞及其定義。

With that, I will pass the call to our CFO, Chris Collier.

接下來，我會將電話轉給我們的財務長 Chris Collier。

Chris?

克里斯？

Thank you for your interest in Flex and for joining us today.

感謝您對 Flex 的興趣並今天加入我們。

Please turn to slide 2 for our second-quarter income statement highlights.

請參閱投影片 2，以了解我們第二季損益表的重點內容。

We were pleased to report that our performance was in line with our guidance on almost all of our major financial indicators.

我們很高興地報告，我們的表現符合我們對幾乎所有主要財務指標的指導。

Our revenue totaled $6 billion, which was at the midpoint of our guidance range, as three of our four business groups met or exceeded our expectations.

我們的收入總計 60 億美元，處於我們指導範圍的中點，因為我們的四個業務集團中的三個達到或超出了我們的預期。

As guided, revenue declined year over year by approximately $300 million, which is entirely reflective of the impact of exiting our Lenovo Motorola China operation, a process that concluded in our June 2016 quarter.

根據指導，營收年減約 3 億美元，這完全反映了退出聯想摩托羅拉中國業務的影響，該過程於 2016 年 6 月季度結束。

Our second-quarter adjusted operating income was $197 million, which was above the midpoint of our guidance range of $180 million to $210 million.

我們第二季調整後的營業收入為 1.97 億美元，高於我們 1.8 億至 2.1 億美元指引範圍的中點。

Adjusted net income was $152 million.

調整後淨利為 1.52 億美元。

Our adjusted earnings per diluted share for the second quarter was $0.28, which was at the midpoint of our range of $0.26 to $0.30, and up 4%, or $0.01, year over year.

第二季調整後每股攤薄收益為 0.28 美元，處於 0.26 至 0.30 美元區間的中點，年增 4%，即 0.01 美元。

Our second-quarter GAAP income before income taxes was $15 million.

我們第二季的稅前 GAAP 收入為 1500 萬美元。

GAAP net loss was roughly $3 million, and GAAP EPS was $0.00, primarily as the result of recognizing a non-cash impairment charge of $93 million or $0.17.

GAAP 淨虧損約為 300 萬美元，GAAP 每股收益為 0.00 美元，主要是由於確認了 9,300 萬美元或 0.17 美元的非現金減損費用。

Let me provide some additional detail after this charge right now.

讓我在這次收費後提供一些額外的細節。

The SunEdison Chapter 11 bankruptcy in April resulted in us taking a bad debt reserve charge of $61 million back in our March quarter, which amounted to our entire outstanding receivables balance.

4 月份，SunEdison 根據破產法第 11 章破產，導致我們在 3 月份季度提列了 6,100 萬美元的壞帳準備金，這相當於我們全部未清應收帳款餘額。

We also retained various exposures for inventory and assets from our SunEdison relationship that we had anticipated being able to mitigate by selling the solar panel inventory directly into the market.

我們也保留了與 SunEdison 關係中的各種庫存和資產風險，我們原本預計可以透過直接向市場出售太陽能板庫存來緩解這些風險。

I would note that 100% of the inventory and assets used in this relationship were contractually covered by SunEdison.

我要指出的是，這種關係中使用的 100% 庫存和資產均由 SunEdison 承擔合約責任。

Beginning in the March quarter, we had executed successfully and mitigated roughly 50% of the total exposure with no negative financial impact.

從 3 月季度開始，我們成功執行並減輕了約 50% 的總風險，沒有產生任何負面的財務影響。

However, during the course of Q2, the solar panel market experienced unprecedented declines in pricing, significantly impacting our remaining SunEdison inventory balance.

然而，在第二季度，太陽能板市場經歷了前所未有的價格下跌，嚴重影響了我們剩餘的 SunEdison 庫存餘額。

As a result, we have written down our remaining SunEdison solar panel inventory and assets to current market values, and expect to sell the remainder of this inventory this fiscal year.

因此，我們已將剩餘的 SunEdison 太陽能板庫存和資產減記至當前市場價值，並預計在本財年出售剩餘的庫存。

Please turn to slide 3 for our trending quarterly financial highlights.

請參閱投影片 3，以了解我們的季度財務熱點趨勢。

Our second-quarter adjusted gross profit totaled $416 million, reflecting an increase of $17 million or 4% year over year.

第二季調整後毛利總計 4.16 億美元，年增 1,700 萬美元，成長 4%。

Our adjusted gross margin expanded 60 basis points from the prior year to 6.9%.

調整後毛利率較上年增加 60 個基點，達到 6.9%。

We continue to evolve our portfolio to a greater concentration of higher margin businesses and to capture greater levels of sketch-to-scale or innovation in engineering-led engagements.

我們繼續發展我們的產品組合，以更加集中更高利潤的業務，並在工程主導的業務中獲得更高水平的草圖到規模或創新。

This evolution has allowed us to realize continued year-over-year gross margin expansion despite a languishing demand environment and lower overall revenue.

儘管需求環境低迷且整體收入較低，這種演變使我們能夠實現毛利率持續同比增長。

Our quarterly adjusted operating income came in at $197 million, and our adjusted operating margin rose roughly 20 basis points year over year to 3.3%.

我們的季度調整後營業收入為 1.97 億美元，調整後營業利潤率年增約 20 個基點，達到 3.3%。

Our strengthening gross margin enables Flex to continue to make investments in sketch to scale and design and engineering capabilities as well as focused innovation initiatives.

我們不斷增強的毛利率使偉創力能夠繼續在草圖縮放、設計和工程能力以及重點創新計劃方面進行投資。

Even while continuously investing to enhance and expand our capabilities, it is noteworthy that we have simultaneously expanded our adjusted operating margin for 12 straight quarters on a year-over-year basis.

即使在不斷投資以增強和擴大我們的能力的同時，值得注意的是，我們的調整後營業利潤率已連續 12 個季度同比擴大。

Return on our invested capital, or ROIC, remains strong at 20% and continues to be well above our cost of capital.

我們的投資資本回報率 (ROIC) 仍然保持在 20% 的強勁水平，並且繼續遠高於我們的資本成本。

Turning to slide 4, we will display our operating performance by business group.

轉向投影片 4，我們將按業務組展示我們的經營績效。

Our CEC business generated $53 million in adjusted operating profit and posted a 2.5% adjusted operating margin, coming in at the low end of our targeted range of 2.5% to 3.5%.

我們的 CEC 業務調整後營業利潤為 5,300 萬美元，調整後營業利潤率為 2.5%，處於我們 2.5% 至 3.5% 目標範圍的下限。

The sequential decline in both margin and profit dollars was the result of lower capacity utilization, causing reduced overhead absorption, as well as incurring incremental costs associated with proactively transitioning our CEC business to create a more attractive longer term operating structure.

利潤率和利潤的連續下降是由於產能利用率較低，導致間接費用吸收減少，以及因主動轉型 CEC 業務以創建更具吸引力的長期營運結構而產生的增量成本。

We expect the proactive program repositioning activities to wane in the December quarter, allowing for margins to improve sequentially.

我們預計主動規劃重新定位活動將在 12 月季度減弱，使利潤率連續改善。

Our CTG business produced $55 million in adjusted operating profit, which resulted in an adjusted operating margin of 3.3%.

我們的 CTG 業務產生了 5,500 萬美元的調整後營業利潤，調整後營業利潤率為 3.3%。

As expected, we saw our CTG business bounce back from last quarter's low point, which had included the costs associated with the closure of our China operation dedicated to Lenovo Motorola.

正如預期的那樣，我們看到我們的 CTG 業務從上個季度的低點反彈，其中包括與關閉專門為聯想摩托羅拉服務的中國業務相關的成本。

September quarter saw revenue increase 27% sequentially, and this increased manufacturing volume provided for improved overhead absorption, directly benefiting operating profit dollars and margin.

9 月季度的營收季增 27%，製造量的增加改善了管理費用的吸收，直接有利於營業利潤和利潤率。

We also continue to benefit from an improving overall mix of our CTG business, as we capture more technology content, leading to higher value added revenues with our customers.

隨著我們獲得更多技術內容，我們也將繼續受益於 CTG 業務整體組合的改善，從而為客戶帶來更高的增值收入。

IEI generated $37 million in adjusted operating profit and a 3% adjusted operating margin, which was well below the targeted margin range of 4% to 6% for this segment.

IEI 產生了 3,700 萬美元的調整後營業利潤和 3% 的調整後營業利潤率，遠低於該部門 4% 至 6% 的目標利潤率範圍。

This quarter's underperformance was again significantly impacted by the SunEdison bankruptcy, as it was the largest customer in both our IEI and our NEXTracker businesses, and the lack of its revenue and associated profit has clearly heavily impacted IEI.

本季表現不佳再次受到 SunEdison 破產的嚴重影響，因為它是我們 IEI 和 NEXTracker 業務的最大客戶，而其收入和相關利潤的缺乏顯然對 IEI 造成了嚴重影響。

This quarter, with solar experiencing unprecedented market declines in pricing for solar panels and energy project delays, IEI's margins were pressured.

本季度，由於太陽能市場的太陽能板定價出現前所未有的下滑以及能源項目的延誤，IEI 的利潤率受到壓力。

However, we have been building a much more diversified energy business, especially within NEXTracker, where we have already doubled both the number of its customers and the countries in which it operates.

然而，我們一直在建立更多元化的能源業務，特別是在 NEXTracker 內，我們已經將其客戶數量和開展業務的國家數量增加了一倍。

This and other new IEI customers and programs will enable IEI to return to its targeted 4% to 6% adjusted operating margin range by the end of our fiscal year as well as experience strong year-over-year growth.

該專案以及其他新的 IEI 客戶和計劃將使 IEI 能夠在本財年結束時恢復到 4% 至 6% 的調整後營業利潤率範圍，並實現強勁的同比增長。

In summary, we expect a rapid recovery in our IEI business.

總而言之，我們預計 IEI 業務將迅速復甦。

Lastly, our HRS business continued its strong performance, generating $79 million in adjusted operating profit, which equates to a 7.9% adjusted operating margin.

最後，我們的 HRS 業務持續保持強勁表現，調整後營業利潤達到 7,900 萬美元，相當於調整後營業利潤率為 7.9%。

We continue to display solid operational execution, enabling HRS to deliver financial results well within our targeted range.

我們繼續展現紮實的營運執行力，使 HRS 能夠在我們的目標範圍內提供良好的財務表現。

Please turn to slide 5 for other income statement highlights.

請參閱投影片 5 以了解其他損益表亮點。

Net interest and other expense for the quarter was $26 million, slightly exceeding our guidance range of $26 million.

本季的淨利息和其他費用為 2,600 萬美元，略超出我們 2,600 萬美元的指導範圍。

We continue to believe that $25 million is the appropriate level for our quarterly net interest and other expense going forward.

我們仍然認為 2500 萬美元是我們未來季度淨利息和其他費用的適當水平。

Our adjusted income tax expense for the second quarter was slightly above $19 million, reflecting an adjusted income tax rate of approximately 11%.

我們第二季調整後的所得稅費用略高於 1,900 萬美元，反映了約 11% 的調整後所得稅率。

While this was above our 8% to 10% estimated adjusted tax rate range for this quarter, we continue to believe that the 8% to 10% tax rate range remains appropriate for this fiscal year.

雖然這高於我們本季 8% 至 10% 的估計調整稅率範圍，但我們仍然認為 8% 至 10% 的稅率範圍對於本財政年度仍然合適。

There's several different elements that have an impact when reconciling between our quarterly GAAP and adjusted EPS.

在協調我們的季度公認會計準則和調整後每股盈餘時，有幾個不同的因素會產生影響。

There's a $0.04 impact from the $23 million of stock-based compensation expense, and there's another $0.04 impact driven by the $20 million of net intangible amortization expense.

2,300 萬美元的股票薪酬費用產生了 0.04 美元的影響，2,000 萬美元的淨無形攤銷費用又產生了 0.04 美元的影響。

This is in addition to the non-cash impairment charges that I had discussed earlier.

這是我之前討論過的非現金減損費用的補充。

Lastly, we launched a smaller targeted restructuring to enable us to move our organization away from some legacy activities and structures so that we may invest further and faster in key innovation and in support of targeted markets.

最後，我們發起了規模較小的有針對性的重組，使我們的組織擺脫了一些遺留活動和結構，以便我們可以進一步更快地投資於關鍵創新並支持目標市場。

We took distinct actions where we recognized $12 million or $0.02 for severence-related costs in the past quarter, and we expect to incur approximately $30 million of additional costs over the remaining six month of the fiscal year.

我們採取了不同的行動，在上個季度確認了 1200 萬美元或 0.02 美元的嚴重相關成本，並且我們預計在本財年剩餘六個月內將產生約 3000 萬美元的額外成本。

Finally, we divested of a non-core entity in the US, resulting in a $0.01 impact.

最後，我們剝離了美國的一個非核心實體，造成了 0.01 美元的影響。

Turning to slide 6, let us review our cash flows and net working capital.

轉向幻燈片 6，讓我們回顧一下我們的現金流量和淨營運資本。

Cash flow generation remains strong.

現金流產生依然強勁。

This quarter, we generated $280 million in cash flow from operations, and over the last 12 months, we've generated over $1 billion.

本季度，我們透過營運產生了 2.8 億美元的現金流，在過去 12 個月中，我們產生了超過 10 億美元。

Networking capital increased $55 million from the prior quarter to roughly $1.9 billion, and was 7.7% of our net sales.

網路資本比上一季增加了 5,500 萬美元，達到約 19 億美元，占我們淨銷售額的 7.7%。

Our resulting cash conversion cycle days totaled 26 days, which improved by a day sequentially.

我們最終的現金轉換週期天數總計 26 天，比上一季減少了一天。

We believe that our current and prospective business mix results in our net working capital as a percentage of sales to remain within our targeted range of 6% to 8%, and we expect to make continued progress throughout the year to reduce our inventory levels and to improve our inventory turns.

我們相信，我們目前和未來的業務組合將使我們的淨營運資本佔銷售額的百分比保持在6% 至8% 的目標範圍內，我們預計全年將繼續取得進展，以降低我們的庫存水平，並提高我們的庫存週轉率。

We continued to make focused investments to expand capability and capacity to support our automotive and medical businesses as well as further investments in automation and to expand technologies to support our innovation services, as our net capital expenditures totaled $136 million this quarter.

我們繼續進行集中投資，以擴大支持我們的汽車和醫療業務的能力和能力，並進一步投資自動化和擴展技術以支援我們的創新服務，本季我們的淨資本支出總計 1.36 億美元。

We expect to manage our CapEx investment levels to be roughly $50 million to $75 million higher than depreciation in FY17, as we make investments in advance of the ramp stages for key strategic programs, such as Nike.

我們預計 2017 財年的資本支出投資水準將比折舊高出約 5,000 萬至 7,500 萬美元，因為我們在耐吉等關鍵策略項目的爬坡階段之前進行了投資。

Free cash flow continued to be very strong in the quarter at $144 million, and year to date, we have generated $264 million of free cash flow.

本季自由現金流持續強勁，達到 1.44 億美元，今年迄今，我們已產生 2.64 億美元的自由現金流。

Late in the quarter, we closed on our strategic partnership with Bose, where we purchased operations in Mexico and Malaysia for approximately $172 million net of cash acquired.

本季末，我們結束了與 Bose 的策略合作夥伴關係，以約 1.72 億美元（扣除現金）購買了墨西哥和馬來西亞的業務。

We have now taken over multiple supply chains and design-related activities from Bose, and we'll be significantly expanding our services for this new product category.

我們現在已經從 Bose 接管了多個供應鏈和設計相關活動，並且我們將大幅擴展針對此新產品類別的服務。

This serves as a great example of how CTG continues to diversify its customer base with world-class brand leaders and simultaneously expanding our technology offering.

這是 CTG 如何繼續透過世界級品牌領導者實現客戶群多元化並同時擴展我們的技術產品的一個很好的例子。

The strength of our cash flow generation enables us to consistently return value to our shareholders through repurchasing of our shares.

我們強大的現金流量產生能力使我們能夠透過回購股票持續為股東回報價值。

This quarter, we repurchased approximately 7 million shares, or 1.3% of our float, for approximately $90 million.

本季度，我們以約 9,000 萬美元的價格回購了約 700 萬股股票，佔流通股的 1.3%。

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

我們的行動是我們堅定不移的承諾，將每年 50% 以上的自由現金流回饋給股東。

Now turning to slide 7 for a review of our balanced capital structure.

現在轉向投影片 7，回顧我們的平衡資本結構。

We continue to have no near-term debt maturities and a strong financial condition with over $3 billion in liquidity and over $1.5 billion in cash.

我們仍然沒有短期債務到期，財務狀況強勁，流動性超過 30 億美元，現金超過 15 億美元。

Our credit metrics remain healthy, and our debt-to-EBITDA ratio is at 2.1 times.

我們的信用指標保持健康，債務與 EBITDA 比率為 2.1 倍。

Before I turn the call over to Mike, I would like to reiterate our confidence in our long-term vision and strategy.

在將電話轉給麥克之前，我想重申我們對長期願景和策略的信心。

This quarter, we took some distinct actions to further fortify our sketch-to-scale supply chain solutions.

本季度，我們採取了一些獨特的行動來進一步強化我們從草圖到規模的供應鏈解決方案。

We will continue to operate with discipline and consistently deliver on our commitments.

我們將繼續恪守紀律，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 8 for our FY17 Q2 business highlights.

請參閱投影片 8 以了解我們 2017 財年第二季的業務亮點。

Let me start by highlighting that our second-quarter performance displays our continued focus on driving value-creating activities.

首先我要強調的是，我們第二季的業績顯示我們持續致力於推動價值創造活動。

This includes the continued emphasis on driving a structural mix change to higher margin businesses, generating sustainable free cash flow, and consistently returning value back to shareholders in the form of our stock buyback program.

這包括繼續強調推動利潤率更高的業務的結構性組合變革，產生可持續的自由現金流，並以股票回購計劃的形式持續將價值返還給股東。

We just reported our 12th straight quarter of year-over-year adjusted operating margin expansion, driven by traction we're developing from our sketch-to-scale strategy and our continuous portfolio evolution.

我們剛剛報告了我們連續第 12 個季度實現同比調整後營業利潤率擴張，這得益於我們從草圖到規模策略和持續的投資組合演變所製定的牽引力。

This creates a more balanced portfolio that has longer product lifecycles, more predictability and increased earnings stability.

這創造了一個更平衡的投資組合，具有更長的產品生命週期、更高的可預測性和更高的收益穩定性。

We delivered this performance against a global backdrop, where growth remains challenging.

我們在成長仍然充滿挑戰的全球背景下取得了這一業績。

This quarter saw total sales from our automotive, medical, industrial and energy businesses amounting to over $2.2 billion, or 37% of sales.

本季我們的汽車、醫療、工業和能源業務的總銷售額超過 22 億美元，佔銷售額的 37%。

Our HRS business again led the way with its 27th consecutive quarter of year-over-year growth.

我們的 HRS 業務再次領先，連續 27 個季度同比增長。

Our portfolio evolution is also reflecting, in the changes we have been making in our CTG customer composition and the technology content in products.

我們的產品組合演變也反映在我們對 CTG 客戶組成和產品技術內容所做的改變中。

We are excited about the addition of Bose to our portfolio, as we closed on the strategic partnership transaction late in Q2 and look to meaningfully expand with this great brand.

我們很高興將 Bose 添加到我們的產品組合中，因為我們在第二季末完成了策略合作夥伴交易，並希望與這個偉大的品牌一起進行有意義的擴張。

Nike also firmly remains on track, as we continue to collaborate on driving automation and manufacturing advancements with them.

耐吉也堅定地保持在正軌上，我們繼續與他們合作推動自動化和製造進步。

In Nike's most recent annual report dated July of this year, CEO Mark Parker said that Nike was, and I quote, partnering with innovators who help and accelerate systematic change at scale.

在耐吉今年 7 月發布的最新年度報告中，執行長 Mark Parker 表示，正如我所引用的那樣，耐吉正在與幫助和加速大規模系統變革的創新者合作。

With Flex, Nike is driving the modernization of footwear manufacturing process across its supply chain.

借助 Flex，耐吉正在推動整個供應鏈鞋類製造流程的現代化。

This quote perfectly encapsulates the strategic partnership we have.

這句話完美地概括了我們的策略夥伴關係。

Our teams again remain extremely engaged as we drive forward the modernization of partner manufacturing together.

我們的團隊再次保持高度參與，共同推動合作夥伴製造的現代化。

Both Bose and Nike are providing a strong foundation, supporting the richer business mix shift underway in CTG.

Bose 和 Nike 都提供了堅實的基礎，支援 CTG 正在進行的更豐富的業務組合轉變。

Even more powerful is that our portfolio evolution results in a greater concentration of our earnings into those longer product lifecycle businesses and improves our earnings stability.

更強大的是，我們的投資組合演變使我們的收入更加集中在那些產品生命週期較長的業務，並提高了我們的收入穩定性。

This quarter, from the adjusted operating profit perspective, you see our HRS and IEI businesses combined to generate 52% total Flex operating profit, which reflects 12% growth year over year.

本季度，從調整後的營業利潤角度來看，我們的 HRS 和 IEI 業務合計產生了 52% 的 Flex 營業利潤，年增 12%。

Our customer diversification is the best we have ever experienced, with our top-10 customers accounting for only 42% of sales, and this was the third straight quarter with no 10%-plus customers.

我們的客戶多元化是我們經歷過的最好的，我們的前 10 位客戶僅佔銷售額的 42%，這是連續第三個季度沒有超過 10% 的客戶。

Cash flow from operations for the quarter was $280 million, and free cash flow totaled $144 million.

該季度營運現金流為 2.8 億美元，自由現金流總計 1.44 億美元。

This was the ninth straight quarter of positive free cash flow generation.

這是連續第九個季度產生正自由現金流。

In the past five years, we have generated positive free cash flow in 17 of the past 20 quarters.

在過去的五年裡，我們在過去 20 個季度中有 17 個季度產生了正的自由現金流。

Our strong levels of sustainable cash flow generation provide us with an opportunity to consistently return value to our shareholders, which was evidenced this quarter as we bought back $90 million worth of stock funded by 63% of our free cash flow.

我們強大的可持續現金流產生水準為我們提供了持續向股東回報價值的機會，本季我們以 63% 的自由現金流回購了價值 9,000 萬美元的股票，這證明了這一點。

Please turn to slide 9, as we review revenue by business group in detail.

請參閱投影片 9，我們將詳細檢視按業務組別劃分的收入。

CEC was in line with our expectations as revenue was $2.1 billion, down 4% sequentially and off 5% year on year.

CEC 的營收為 21 億美元，季減 4%，年減 5%，符合我們的預期。

The year-over-year decline was mostly due to weakness in legacy server storage business and to a lesser extent telecom and networking.

年比下降主要是由於傳統伺服器儲存業務的疲軟以及電信和網路業務的疲軟所致。

Sequentially in the quarter, networking and security and cloud solutions were up, while telecom and legacy server and storage were both down.

在本季中，網路、安全性和雲端解決方案不斷上升，而電信和遺留伺服器和儲存則雙雙下降。

For next quarter, we expect CEC revenue to be stable on a sequential basis, as we see continued growth in cloud solutions being offset by weakness in telecom and networking.

對於下個季度，我們預計 CEC 營收將環比穩定，因為我們看到雲端解決方案的持續成長被電信和網路的疲軟所抵消。

CTG exceeded our expectations for a15 % to 25% sequential revenue growth as revenue rose 27% sequentially.

CTG 營收季增 27%，超出了我們預期的 15% 至 25% 的環比營收成長。

This quarter reflect the ramping of the new products and programs and the seasonality of this business.

本季度反映了新產品和計劃的增加以及該業務的季節性。

For the December quarter, we are guiding CTG revenue to increase another 10% to 15% sequentially, as we see the positive impact of the initial Bose business combined with a modest seasonal demand for other customers.

對於 12 月所在季度，我們預計 CTG 收入將環比再增長 10% 至 15%，因為我們看到了最初的 Bose 業務的積極影響以及其他客戶適度的季節性需求。

It is important to note that when looking at CTG's year-over-year declines for the September and December quarter was entirely driven by the Lenovo Motorola China.

值得注意的是，三峽集團9月和12月季度的年減完全是由聯想摩托羅拉中國所推動的。

IEI fell short of our expectations of stable sequential demand.

IEI 未能達到我們對穩定的連續需求的預期。

Revenue was over $1.2 billion, down 4% sequentially, but up 8% year over year.

營收超過 12 億美元，比上一季下降 4%，但年增 8%。

This miss relative to expectations was centered solely on our solar business, which continued to suffer impacts from the bankruptcy of our former largest customer.

這種與預期的差距僅集中在我們的太陽能業務上，該業務繼續受到我們前最大客戶破產的影響。

As Chris already mentioned, this quarter's solar panel pricing also experienced a significant reduction, causing us to have to revalue the remaining SunEdison solar panel inventory.

正如 Chris 已經提到的，本季的太陽能板定價也經歷了大幅下降，導致我們不得不重新評估剩餘的 SunEdison 太陽能板庫存。

We continue to have great confidence in the renewable energy mega trends supporting our strategy and have been positioning ourselves to be a provider of smart connected energy solutions, rather than a provider of solar panels, which have become heavily commoditized.

我們仍然對支持我們策略的可再生能源大趨勢充滿信心，並一直將自己定位為智慧互聯能源解決方案的供應商，而不是已經高度商品化的太陽能板提供者。

Whether it has been through the growing our solar tracker business or the addition of data analytics through the BrightBox acquisition or adding functionality to integrate and leverage our Wink home automation hub into home energy management, we are focused on delivering differentiating solutions that customers need.

無論是透過發展我們的太陽能追蹤器業務，還是透過收購BrightBox 添加數據分析，或者添加功能以將我們的Wink 家庭自動化中心整合和利用到家庭能源管理中，我們都專注於提供客戶所需的差異化解決方案。

Despite the loss of SunEdison, we will have strong year-over-year growth in energy and look forward to this segment being a growth driver in future years on the back of our improved solutions offering and strong macro trends.

儘管失去了 SunEdison，我們的能源業務仍將實現強勁的同比增長，並期待在我們改進的解決方案和強勁的宏觀趨勢的支持下，該領域成為未來幾年的成長動力。

For next quarter, we are forecasting IEI sales to be stable.

對於下個季度，我們預計 IEI 銷售額將保持穩定。

HRS met its revenue expectations for the quarter, reflecting the anticipated seasonal headwind in automotive as revenue declined 7% sequentially to $1 billion.

HRS 達到了本季的營收預期，反映出汽車產業預期的季節性逆風，營收季減 7% 至 10 億美元。

On a year-over-year basis, this was 5% growth and marked the 27th quarter in a row that HRS has delivered year-over-year revenue growth.

年比成長 5%，標誌著 HRS 連續第 27 個季度實現營收年增。

During the quarter, our automotive business experienced summer seasonality due to planned shutdowns, and our medical business came off of a very strong Q1.

在本季度，我們的汽車業務由於計劃停產而經歷了夏季季節性，而我們的醫療業務在第一季表現非常強勁。

We continue to be very excited about the future growth in HRS, as we continuously expand our technology offering and become a meaningful innovation partner with many of our top customers.

我們對 HRS 的未來成長仍然感到非常興奮，因為我們不斷擴展我們的技術產品，並成為許多頂級客戶有意義的創新合作夥伴。

Again this quarter, we captured multiple new customer programs that will help layer on future growth.

本季度，我們再次獲得了多個新客戶計劃，這將有助於未來的成長。

For the next quarter, we expect HRS to be stable sequentially, which is a function of some automotive growth being offset by minor reductions with a couple of medical customers.

對於下個季度，我們預計 HRS 將連續穩定，這是由於一些汽車行業的成長被一些醫療客戶的小幅減少所抵消。

Now turning to our December quarter guidance, on slide 10.

現在轉向幻燈片 10 上的 12 月季度指引。

Our expectation for revenue to be in the range of $6 billion to $6.4 billion.

我們預計收入將在 60 億至 64 億美元之間。

The midpoint is a 3% increase sequentially.

中點為季增 3%。

Our guidance for adjusted operating income is to be in the range of $205 million to $235 million, or $220 million at the midpoint.

我們對調整後營業收入的指引為 2.05 億美元至 2.35 億美元，中間值為 2.2 億美元。

This equates to an adjusted earnings per share guidance range of $0.31 to $0.35 a share, based on weighted average shares outstanding of 546 million.

這相當於調整後每股盈餘指引範圍為每股 0.31 美元至 0.35 美元，基於 5.46 億股加權平均流通股。

The adjusted EPS guidance is expected to be approximately $0.13 per share higher than the quarterly GAAP earnings per diluted share due to net intangible amortization, stock-based compensation, and restructuring charges.

由於淨無形攤銷、股票薪酬和重組費用，調整後的每股收益指引預計將比季度 GAAP 攤薄每股收益高出約 0.13 美元。

As I wrap up, I want to thank our Flex team for their focus and efforts during the second quarter.

最後，我要感謝 Flex 團隊在第二季的專注和努力。

The global economic environment has not been very cooperative, but the focus, commitment and the energy you put forth towards evolving our business into a sketch-to-scale supply chain solutions provider, are roping up numerous opportunities for us to continue to improve and serve our customers better.

全球經濟環境並不十分合作，但您為將我們的業務發展成為從草圖到規模的供應鏈解決方案提供商所付出的關注、承諾和精力，為我們提供了許多繼續改進和服務的機會我們的客戶更好。

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

至此，我想開始問答環節。

Operator?

操作員？

(Operator Instructions)

（操作員說明）

Stephen Milunovich, UBS.

史蒂芬·米盧諾維奇，瑞銀集團。

Thank you, good afternoon.

謝謝你，下午好。

The slowdown in HRS and it could be down year-over-year in the December quarter, and IEI, as well.

HRS 放緩，12 月季度可能年減，IEI 也是如此。

What do you view as the long-term growth rates for those businesses and has that changed at all based on the some of these short-term volatile situations?

您認為這些企業的長期成長率是多少？由於這些短期波動情況，這種成長率是否發生了變化？

Hi Stephen.

嗨史蒂芬。

I think from the IEI standpoint we don't necessarily see that there is a slowdown, we see it more as a disruption with SunEdison.

我認為從 IEI 的角度來看，我們不一定會看到經濟放緩，我們更將其視為對 SunEdison 的干擾。

And part of that disruption, it did carry on to slow down in the marketplace as they had quite a bit -- they had 2 gigawatts of projects underway and they had a big pipeline of like $8 billion and a lot of other factors ended up contributing to a little bit of a slowdown.

作為這種顛覆的一部分，它確實在市場上繼續放緩，因為他們有相當多的項目——他們有2 吉瓦的項目正在進行中，他們有一個價值80 億美元的大型管道，還有許多其他因素最終促成了這一結果。到一點點放緩。

The ITC extension in the United States in as well, some of the changes in the feed-in tariffs in China.

美國的 ITC 延期以及中國上網電價補貼的一些變化。

So we don't see that as being significant long-term because the macro according to solar is very high.

因此，我們認為這不會產生重大的長期影響，因為太陽能的宏觀經濟非常高。

Industrial continues to -- the rest of the industrial business continues to move along at a fairly good, a fairly reasonable pace.

工業繼續——其餘工業業務繼續以相當好的、相當合理的速度發展。

So we actually think we will have a couple of quarter slowdown here in IEI and then we expect it to recover.

因此，我們實際上認為 IEI 將會出現幾季的放緩，然後我們預計它會恢復。

So in summary we actually expect, even with the SunEdison problem, we actually expect that business to be -- grow very close to our target of the 10%.

總而言之，我們實際上預計，即使存在 SunEdison 問題，我們實際上也預計該業務的成長將非常接近我們 10% 的目標。

In HRS we are seeing a slowdown in some of the businesses.

在 HRS 中，我們看到一些業務放緩。

We also had a little bit of a pushout in one of our medical programs, which I'm a little disappointed in.

我們的一個醫療計畫也遭到了一些抵制，對此我有點失望。

So auto is slowing a little bit but still probably going close to 10%, medical's probably a little bit slower.

因此，汽車業的成長速度有所放緩，但仍可能接近 10%，醫療產業的成長可能會稍慢一些。

But as a bundle, that HRS group is probably going to grow more towards the mid-single digits for the year.

但作為一個整體，HRS 集團今年的成長可能會朝著中個位數成長。

But in terms of structurally coming off of our long-term targets of having those two groups together, drive to a 10% growth rate, we still think those are intact.

但就結構性地實現我們將這兩個群體結合在一起的長期目標（推動 10% 的成長率）而言，我們仍然認為這些目標是完好無損的。

Okay, and within CTG, do you still expect Bose could be a top 10 customer in FY18, and how quickly do you expect net Nike to ramp?

好的，在 CTG 內部，您是否仍預期 Bose 可能成為 2018 財年的前 10 名客戶？您預計 Nike 淨值成長的速度有多快？

Yes, so 2018 for Bose will definitely be a top 10 customer, so I think that is well on its way, and we don't anticipate any disruptions or delays with that program, with that customer or with their revenue ramps.

是的，所以 2018 年 Bose 肯定會成為十大客戶，所以我認為這一切進展順利，我們預計該計劃、該客戶或其收入增長不會出現任何中斷或延遲。

Nike, I think I would frame Nike this way.

耐吉，我想我會這樣定義耐吉。

We have been working at reinventing manufacturing or reinventing how manufacturing happens with shoes.

我們一直致力於重塑製造業或重塑鞋類的製造方式。

It is a pretty significant change.

這是一個相當重大的改變。

We have been under a lot of design automation, changes and invention over the last, really over the last two years.

在過去的兩年裡，我們經歷了許多設計自動化、變革和發明。

We will see FY18 as pretty much of a ramp year as we move more towards volume and we will see FY19 as being pretty high volume here.

隨著我們更加重視銷量，我們將看到 2018 財年幾乎是一個增長年，我們將看到 2019 財年的銷量相當高。

So think about 2016 and 2017 as being invention and re-creation of how manufacturing happens, FY18 as a ramp year, which we will still have some profitability challenges as a result of course.

因此，將 2016 年和 2017 年視為製造業如何發生的發明和再創造，將 2018 財年視為斜坡年，因此我們仍然會面臨一些獲利挑戰。

And FY19 being full revenue, where we will expect to make very good progress around profitability.

2019 財年是全額收入，我們預期在獲利能力方面將取得非常好的進展。

Great, thank you.

太好了謝謝。

Next, Amit Daryanani, RBC financial markets.

接下來是 RBC 金融市場部門的 Amit Daryanani。

Thanks, good afternoon guys, I have two questions as well.

謝謝大家下午好，我也有兩個問題。

Start with on the Bose side, can you talk about -- maybe I missed I this, but how much of the Bose revenues are built into the CPG model or you revenue model guide for the December quarter?

從 Bose 方面開始，您能談談 — 也許我錯過了這一點，但是 Bose 收入中有多少是納入 CPG 模型或您 12 月份季度的收入模型指南中的？

And is the Bose, the revenues you get, are they running in line to your CTG margins, or do you need to improve the utilization of those two sites to get there?

Bose 的收入是否符合您的 CTG 利潤，或者您是否需要提高這兩個站點的使用率才能實現這一目標？

Hi, Amit, this is Chris.

嗨，阿米特，我是克里斯。

So we closed Bose late in Q2, so we are going to get the full benefit of it in this current quarter.

因此，我們在第二季末關閉了 Bose，因此我們將在本季充分受益。

In the prepared remarks we highlighted that Bose is contributing mostly to the gains that we have guided to in CTG for the December quarter.

在準備好的發言中，我們強調 Bose 對我們指導的 CTG 12 月季度的收益做出了主要貢獻。

There is some modest growth in the rest of the business of CTG, but predominantly the 10% to 15 % up is driven by Bose.

CTG 的其他業務略有成長，但 10% 至 15% 的成長主要是由 Bose 推動的。

The revenue run rate, it's going to be a top 10 customer next year.

從收入運行率來看，明年它將成為前十名客戶。

The revenue run rate is not going to be linear.

收入運行率不會是線性的。

It is going to have some seasonality, as a relates to the profitability, it is not going to be accretive out of the gate to the margins.

它會有一定的季節性，因為與獲利能力有關，它不會增加利潤。

It is accretive, it is profitable, but it is not going to be accretive to margins as we go through integration and other activities with the two new factories.

它是增值的，它是有利可圖的，但當我們與兩個新工廠進行整合和其他活動時，它不會增加利潤。

But that is something that takes course over the next couple quarters and we are super confident about our ability to bring that online, grow that into a very meaningful customer this coming year and have it contributing very nicely to the margin profile of CTG and to Flex.

但這是未來幾季的事情，我們對我們將其上線的能力非常有信心，在來年將其發展成為一個非常有意義的客戶，並讓它為CTG 和Flex 的利潤狀況做出非常好的貢獻。

We are excited about it; it brings two auto certified factories, real new technologies, some expansive engineering talent and knowledge, so there is a lot I will do it that were excited about.

我們對此感到興奮；它帶來了兩家經過汽車認證的工廠、真正的新技術、一些廣泛的工程人才和知識，所以我會做很多讓我興奮的事情。

And again with CTG our focus continues to be around improving the margin and profitability of that business, not necessarily focused on the revenue growth.

對於 CTG，我們的重點仍然是提高該業務的利潤率和獲利能力，而不一定是營收成長。

So as we state, moving it to a richer mix, and we're doing it through these new brands and new technologies and new products.

正如我們所說，將其轉變為更豐富的組合，我們正在透過這些新品牌、新技術和新產品來實現這一目標。

Got it.

知道了。

And then just on the SunEdison dynamic, it sounds like you're still holding some level of solar panel inventory on your balance sheets.

然後就 SunEdison 的動態而言，聽起來您的資產負債表上仍然持有一定水平的太陽能電池板庫存。

Can you talk about how much do you have now, and would you expect to exit 100% of it by the end of this December quarter?

您能談談您現在有多少資金嗎？您預計在本季度末之前 100% 退出嗎？

Yes, so in the prepared remarks, we highlighted that we took a charge during the quarter and we mitigated until that point roughly half of our exposure.

是的，所以在準備好的評論中，我們強調我們在本季度收取了費用，並且在此之前我們減少了大約一半的風險敞口。

After the charge we have a little less than 50 million of module inventory in our shop and we have identified -- we actually have POs in place right now securing the sales of that and we anticipate having all of that out of the system, sold by the end of our fiscal year.

收費後，我們商店裡的模組庫存略低於 5000 萬個，我們已經確定 - 我們現在實際上已經有採購訂單來確保其銷售，我們預計將所有這些模組庫存從系統中剔除，由我們的財政年度結束時。

Got it, thank you very much.

明白了，非常感謝。

Next question, Adam Tindle, Raymond James.

下一個問題，亞當·廷德爾，雷蒙德·詹姆斯。

Okay, thank you.

好的謝謝。

You mentioned that you are still committed to the 4% to 6% operating margin in IEI and expect to achieve this by the end of the fiscal year.

您提到，您仍然致力於 IEI 4% 至 6% 的營業利潤率，並預計在本財年末實現這一目標。

Could you help us with what needs to happen for this to be achieved?

您能否幫助我們了解如何實現這一目標？

Is there any expectation of solar panel market values improving embedded in this?

太陽能板市場價值是否會因此而改善？

Yes, the 4% to 6%, we actually think it continues to be intact, if SunEdison did go upside down we would probably would already be there quite frankly.

是的，4% 到 6%，我們實際上認為它仍然完好無損，如果 SunEdison 確實顛倒過來，坦白說，我們可能已經在那裡了。

So that is throwing a wrench into things, so we are going to take a couple of quarter hit in terms of -- or a delay in terms of getting to that target margin range.

因此，這給事情帶來了麻煩，因此我們將在達到目標利潤範圍方面遭受幾個季度的打擊，或者延遲。

We would expect to move that into the range by the March quarter.

我們預計到三月季度將其納入該範圍。

And it does not actually matter much what the module pricing does, because we feel that we have sufficiently mitigated the current exposure of that Chris talked about with the $48 million.

模組定價實際上並不重要，因為我們認為我們已經充分減輕了 Chris 談到的 4800 萬美元的當前風險。

And after that we are not really in the module business, so we don't have any additional exposure associated with that.

此後，我們就不再真正涉足模組業務，因此我們沒有任何與之相關的額外風險。

So we are heavily focused at selling solutions.

因此，我們非常注重銷售解決方案。

We're heavily focused that driving trackers at improving the energy harvest through smart connected solutions.

我們非常專注於透過智慧互聯解決方案驅動追蹤器改善能量收集。

But we kind of view modules as a commodity business.

但我們將模組視為一種商品業務。

You can see how significantly that has impacted the marketplace over this last quarter, and we are not in that business with one exception, which is we would obviously build modules for -- on an EMS basis.

您可以看到這對上個季度的市場產生了多麼重大的影響，我們從事這項業務時沒有一個例外，那就是我們顯然會在 EMS 的基礎上建立模組。

But in terms of being in the business and owning that exposure, it is not something that we are into.

但就進入這個行業並擁有這種曝光度而言，這不是我們所感興趣的。

We are more interested in energy solutions.

我們對能源解決方案更感興趣。

And the only thing I would add to that is as we continue the progress in the back end of this year we have multiple new programs that have been ramping inside of our lifestyle, inside of industrial, inside of industrial home, that are also prove benefits to beneficial to the Company's growth and profitability, into IEI.

我唯一要補充的是，隨著我們在今年年底繼續取得進展，我們有多個新計劃，這些計劃已經在我們的生活方式、工業內部、工業家庭內部不斷推進，這也被證明是有好處的進入IEI 有利於公司的成長和獲利。

And as we've talked about and our prepared remarks, are NEXTracker business, we've more than doubled the number of customers and we have more than doubled the number of geographies that we are serving now.

正如我們所討論的以及我們準備好的發言中所提到的，NEXTracker 業務使我們的客戶數量增加了一倍多，我們現在所服務的地區數量也增加了一倍多。

And we have the leading share in terms of that tracking solution, and we see that continuing to be a very robust offering.

我們在追蹤解決方案方面擁有領先的份額，我們認為它仍然是一個非常強大的產品。

So we're going to get some of this solar module pricing pressure behind us this past quarter, you're going to see us stepping up into higher profitability in Q3, and as I said in the prepared remarks, we have line of sight to getting inside that 4% to 6% range in our Q4 this year, based on those various elements.

因此，上個季度我們將克服一些太陽能組件定價壓力，您將看到我們在第三季度實現更高的盈利能力，正如我在準備好的講話中所說，我們的視線根據這些不同的因素，今年第四季的成長率將達到4% 至6% 的範圍。

Okay, and then maybe just one quick follow-up on HRS, Mike.

好的，麥克，接下來也許只是對 HRS 的一個快速跟進。

You mentioned flowing their in terms of the growth rate.

您提到了成長率方面的流動。

With that in mind, how should we think about margin?

考慮到這一點，我們應該如何考慮保證金？

Is there a certain level of HRS revenue that you need to sustain margins at 8%?

您是否需要一定水準的 HRS 收入才能將利潤率維持在 8%？

Well we're already, as you know, just below the 8%.

如你所知，我們已經略低於 8%。

I would focus you on being in that margin range.

我會把你的注意力集中在這個利潤範圍內。

We have a range for a reason, not an absolute 8%.

我們有一個範圍是有原因的，不是絕對的 8%。

But you know at this level of revenue, we're able to achieve those margins.

但你知道，在這個收入水準上，我們能夠實現這些利潤。

So I would say we don't actually need more revenue in order to move that margin or even to maintain that margin.

所以我想說，我們其實並不需要更多的收入來提高利潤率，甚至維持利潤率。

But I would caution you that we are trying to build to a range, not just necessarily 8%.

但我要提醒您的是，我們正在努力建立一個範圍，而不僅僅是 8%。

And again, I think the slowing is pretty temporary.

再說一遍，我認為放緩只是暫時的。

We don't -- as we think about looking into next year, we have pretty good visibility into what this order stream looks like.

我們沒有——當我們考慮明年的情況時，我們對訂單流的情況有了很好的了解。

We know which programs we have booked.

我們知道我們預訂了哪些項目。

So we are still pretty bullish that maybe we've got just a temporary slowdown here, and we had one major medical program that just got pushed out in terms of timing.

因此，我們仍然非常樂觀，也許我們只是暫時放緩，而且我們的一項重大醫療計劃在時間上剛剛被推遲。

It is not going to go away, it moved about two quarters, and that will come back to us this next quarter, and it will have significant revenue implications for medical.

它不會消失，它移動了大約兩個季度，這將在下個季度回到我們身邊，它將對醫療收入產生重大影響。

So we think we're on the right trajectory, our capabilities keeps expanding, our bookings are very high.

所以我們認為我們正走在正確的軌道上，我們的能力不斷擴大，我們的預訂量非常高。

Picking up two more automotive facilities, certified facilities with Bose is going to be also interesting in terms of driving some more automotive businesses into the organization on a different technology, which is obviously unfound.

收購另外兩個汽車工廠，通過 Bose 認證的工廠對於推動更多汽車企業採用不同的技術加入該組織來說也很有趣，這顯然是沒有發現的。

So we are still reasonably bullish.

所以我們仍然相當樂觀。

It is hard to get every single quarter going up 10%, but we still believe that the targets that we've laid out are intact on a long-term basis.

讓每個季度都成長 10% 是很困難的，但我們仍然相信，從長期來看，我們設定的目標是完整的。

And the only thing I would add to that is as we highlighted at our investor day this past year, we are coming off our best booking year ever in both medical and in automotive, and those bookings don't manifest themselves in revenue really quickly.

我唯一要補充的是，正如我們在去年的投資者日所強調的那樣，我們即將迎來醫療和汽車領域有史以來最好的預訂年度，而這些預訂並不會很快在收入中體現出來。

It takes several quarters for them to start coming in.

他們需要幾個季度才能開始進來。

So as we look out, we have a lot of confidence in the continued growth rates.

因此，從我們的觀察來看，我們對持續的成長率充滿信心。

We're seeing some positives with some challenges in the near-term, but the thing about our medical business, we have drug delivery, diabetes care, ophthalmology, digital imaging.

短期內我們看到了一些積極的一面，也面臨一些挑戰，但我們的醫療業務包括藥物輸送、糖尿病護理、眼科、數位成像。

We've greatly expanded our capability and are offering and the same goes for automotive.

我們極大地擴展了我們的能力並提供產品，汽車領域也是如此。

So when you think about us operating a $4 billion annual business, we actually have a perfectly positioned footprint and capability set to continue to grow, and we actually believe strongly that we can continue to see that same level of growth, and that is why we believe that 2020 vision remains intact.

因此，當你想到我們每年經營 40 億美元的業務時，我們實際上擁有完美的佈局和能力來繼續增長，而且我們實際上堅信我們可以繼續看到同樣水平的增長，這就是為什麼我們相信2020年的願景仍然完好無損。

Understood, thank you.

明白了，謝謝。

Next question, Mark Delaney, Goldman Sachs.

下一個問題，馬克·德萊尼，高盛。

Good afternoon and thanks very much for taking the questions.

下午好，非常感謝您提出問題。

First question is on margins, the CTG margins in particular were up nicely this quarter.

第一個問題是利潤率，尤其是三峽集團的利潤率本季成長良好。

I know you talked about the Bose impact coming in slightly lower next quarter.

我知道您談到 Bose 的影響在下個季度會略有下降。

But if you exclude that new piece of business, can you talk about how sustainable some of the improvements are that you are seeing within the CTG business?

但如果您排除這項新業務，您能談談您在 CTG 業務中看到的一些改進的可持續性嗎？

Certainly, Mark

當然，馬克

CTG as expected had some reallsolid growth sequentially.

正如預期的那樣，三峽集團實現了一些真正穩健的連續成長。

That $55 million for Flex more than doubling from Q1 and we shot up past the top end of the range.

Flex 的 5,500 萬美元比第一季增加了一倍多，我們的營收迅速超過了該範圍的上限。

There are a lot of things that are contributing to that.

有很多因素促成了這一點。

We continue to be focused around the mix of the business and how to structurally set that business up.

我們繼續專注於業務組合以及如何在結構上建立該業務。

If you look at how we guide next quarter, you are going to see us again up above that top end of that range and it is because of the mix of business, our ability to manage the new strategic customers very well, we have a bit of pressure on the margin profile, only in the couple of quarters because of integrating in Bose.

如果您看看我們下個季度的指導，您將看到我們再次高於該範圍的高端，這是因為業務組合，我們很好地管理新策略客戶的能力，我們有一點由於與Bose 的整合，利潤率壓力僅在幾個季度出現。

But if you think about the book of business that we have and where we have been moving; whether it is in fashion and apparel, into the connected home, all of these areas will we have been moving off some of that higher volume, consumer programs that we used to be driving in CTG, they are affording us to get into a richer engagement model with our customers.

但如果你想想我們現有的業務手冊以及我們一直在發展的方向；無論是在時尚和服裝領域，還是在互聯家庭領域，所有這些領域我們都將放棄我們過去在 CTG 推動的一些高容量消費者計劃，它們使我們能夠參與更豐富的參與與我們的客戶一起建立模型。

And as a result, we will be able to provide more meaningful design and lead with innovation and often partner with them throughout early parts of their product life cycle, enabling us to secure greater margin and value add.

因此，我們將能夠提供更有意義的設計並引領創新，並經常在產品生命週期的早期階段與他們合作，使我們能夠獲得更大的利潤和附加價值。

And so as that mix shift continues to happen, we keep getting more and more confident and thus that is why we increased the range back in our analyst day to the 2% to 3% -- from 2% to 3% to 2% to 4% for that CTG business and your seeing ourselves migrate up through that each period.

因此，隨著這種混合轉變的繼續發生，我們變得越來越有信心，這就是為什麼我們在分析師當天將範圍增加到 2% 到 3%——從 2% 到 3% 到 2% 到CTG 業務佔4%，您會看到我們在每個時期都會向上遷移。

So as you look through the back end of this year, you will see us staying up inside that range and continue to diversify the underlying portfolio.

因此，當你回顧今年年底時，你會看到我們保持在這個區間內，並繼續實現基礎投資組合的多元化。

I would add one other thing Mark, just in terms of the sustainability of that margin up into that range, is that we are still ramping Nike.

我想補充另一件事，馬克，就利潤率在該範圍內的可持續性而言，我們仍在加大耐吉的力度。

This is not contributing in any way to the operating profit in face it's negative at this point.

儘管目前營業利潤為負，但這對營業利潤沒有任何貢獻。

And as that moves to volume production, that I talked about towards the end of FY18, we are going to see a lot of margin accretion on the back of that program.

隨著我在 2018 財年末談到的轉向批量生產，我們將看到該計劃帶來的大量利潤增加。

We will no longer be absorbing those losses and the start up costs on that program and it will largely move into a very structural increase in terms of margins on the back of that moving into volume production.

我們將不再吸收這些損失和該計劃的啟動成本，並且在進入批量生產的背景下，利潤率將在很大程度上進入結構性成長。

There is an additional driver out there not only has gone into the 3.3% this quarter but hopefully into the middle of the bracket there between two and four.

本季度還有一位額外的車手不僅進入了 3.3%，而且預計將進入 2 到 4 之間的中間位置。

But we've got another margin driver coming which is called Nike and right now we are absorbing losses.

但我們還有另一個利潤驅動因素，那就是耐吉，現在我們正在吸收損失。

And Chris just to make sure I understand when you said you expected to stay in the range for the rest of this fiscal year.

克里斯只是想確保我理解您所說的預計在本財年剩餘時間內保持在該範圍內的情況。

That is inclusive of any Bose integration expenses?

這包括任何 Bose 整合費用嗎？

Yes, yes.

是的是的。

Okay and can help us for my next question hoping to better understand how you guys are thinking about SG&A dollars in the December quarter?

好的，可以幫助我們回答我的下一個問題，希望更了解你們如何看待 12 月季度的 SG&A 美元？

Even if SG&A was to be down gross margin percentage by my math is going to be up quite nicely and probably close to record high gross margins, despite what is a much higher mix of consumer.

即使銷售管理費用（SG&A）下降，根據我的計算，毛利率也會大幅上升，並且可能接近創紀錄的高毛利率，儘管消費者的組合要高得多。

It seems like there's a lot of good things going on to the underlying gross profitability of the company if you could help us understand what some of those drivers may be, that would be helpful.

如果您能幫助我們了解其中一些驅動因素可能是什麼，那麼公司的潛在毛盈利能力似乎有很多好處，那將會有所幫助。

Thank you for that highlight and I tried to put that emphasis in the prepared remarks, where we talked about gross margin this past quarter was up 60 basis points to 69.

感謝您的強調，我試圖在準備好的發言中強調這一點，我們談到上個季度的毛利率上升了 60 個基點，達到 69。

And again this coming quarter here, if you look at how we set up on the midpoints here, you are going to see a nice healthy 40 basis points or so increase again year-over-year in terms of gross margin.

下個季度，如果你看看我們如何設定中點，你會看到毛利率年比再次健康成長 40 個基點左右。

Again it goes to the evolving portfolio, a greater concentration of the higher margin business.

再次，它涉及不斷發展的投資組合，更加集中於利潤率較高的業務。

A lot of what we just talked about, the mix shift that is happening within the CTG business and how we continuously are finding ways to drive greater engineering and design-lead engagements for the Company.

我們剛才談到了很多內容，CTG 業務中正在發生的混合轉變，以及我們如何不斷尋找方法來推動公司更大的工程和設計主導參與。

But you see us moving helpfully higher and a nice solid seven handle on the gross profit.

但你會看到我們的股價不斷走高，毛利也達到了七成。

And you will see SG&A staying right around where it is at.

您會看到 SG&A 保持在原來的位置。

Right around the $220 million range as you look to next quarter.

展望下個季度，這個數字大約在 2.2 億美元左右。

And as you think about that in terms of the company and managing SG&A year-over-year, over two-thirds of the increase from a year ago is driven by the acquisitions that we have made.

當您考慮公司和管理銷售、一般行政費用（SG&A）的年比情況時，與去年同期相比，超過三分之二的成長是由我們進行的收購所推動的。

So the company has been doing a really solid job of making certain that we can invest correctly into the design and engineering, as we continue to increase R&D, which is a component piece of SG&A, and to leverage off and get efficiency and productivity on a core G&A base.

因此，公司一直在做非常紮實的工作，確保我們能夠正確地投資於設計和工程，因為我們不斷增加研發（SG＆A 的組成部分），並利用並獲得效率和生產力核心 G&A 基地。

How you should think about the performance overall is exactly how you framed it.

您應該如何考慮整體性能正是您如何設計它的。

Seeing a nice 7% plus gross margin and structurally sustaining around a $220 million SG&A as we move forward.

隨著我們的前進，毛利率將達到 7% 以上，並在結構上維持約 2.2 億美元的 SG&A。

Thank you.

謝謝。

Next question, Jim Suva, Citi.

下一個問題是花旗銀行的 Jim Suva。

Thank you very much, I believe you had mentioned your absorbing some losses on Nike's as you ramp that, which is understandable given the ramp.

非常感謝你，我相信你已經提到你在增加耐吉的一些損失時吸收了一些損失，考慮到斜坡，這是可以理解的。

But does it get even more burdensome, say for the next two, four, six quarters, or when do we switch over to profitability?

但在接下來的兩個、四個、六個季度，或者我們什麼時候轉向盈利，它會變得更加繁重嗎？

Well I think Jim once it hits volume production is when we're going to see it largely switch.

好吧，我認為吉姆一旦達到批量生產，我們就會看到它發生很大的變化。

As I mentioned, we are still in innovation and creation stage at this point.

正如我所提到的，我們目前仍處於創新和創造階段。

We're actually building some capacity that is going to be coming online soon and then we will begin -- start ramp.

實際上，我們正​​在建立一些容量，這些容量很快就會上線，然後我們就開始——啟動斜坡。

During a ramp we're not going to reach full profitability.

在成長過程中，我們不會完全獲利。

So it will get better and better every quarter.

所以每季都會變得越來越好。

But I think if you think about that going over the course of FY18 and then I think once you get to FY 19, it will get better.

但我認為，如果你考慮一下 2018 財年的情況，然後我認為一旦進入 19 財年，情況就會變得更好。

It will get profitable.

它將獲得盈利。

I think what you ought to think about is that we are in a loss position today and over the course of the next six quarters we will move progressively into a positive operating profit scenario.

我認為你應該考慮的是，我們今天處於虧損狀態，在接下來的六個季度中，我們將逐步進入正營業利潤的局面。

Great, thank you.

太好了謝謝。

And then as a quick follow-up, if I remember right, you had inventory write-down this quarter, but then last quarter I think you had an accounts receivable write-due to SunEdison.

然後作為快速跟進，如果我沒記錯的話，本季度您進行了庫存減記，但上個季度我認為您對 SunEdison 進行了應收帳款減記。

My question is, is my memory right and if so why weren't those all done at the same time?

我的問題是，我的記憶是否正確？如果是的話，為什麼這些工作不同時完成？

Did you keep producing inventory and product after that or why wasn't it mopped up and cleaned up last quarter?

此後您是否繼續生產庫存和產品，或者為什麼上個季度沒有清理乾淨？

Certainly Jim.

當然是吉姆。

So in the prepared remarks I also highlighted that exact fact that the SunEdison Chapter 11 took place in April.

因此，在準備好的發言中，我還強調了 SunEdison 第 11 章於 4 月舉行的事實。

In our March quarter, we took a bad debt reserve charge of $61 million, which was reserving against the entire outstanding receivable balance.

在 3 月的季度，我們提取了 6,100 萬美元的壞帳準備金，該準備金是針對全部未償應收帳款餘額準備的。

At that time, we also had inventory and other assets associated with that relationship, which as I noted were 100% covered by SunEdison.

當時，我們還擁有與這種關係相關的庫存和其他資產，正如我所指出的，SunEdison 100% 涵蓋了這些資產。

We have been selling into the marketplace those associated panels and utilizing the underlying assets.

我們一直在向市場出售這些相關面板並利用基礎資產。

And during the period -- and then we also had purchase orders.

在此期間，我們也收到了採購訂單。

We had book of business that was significantly greater than the inventory levels that we were carrying on hand back in May and June.

我們的業務量明顯高於五月和六月的庫存水準。

But what is transpired over the course of these last several months, has been an unprecedented erosion in the Solar panel pricing.

但在過去的幾個月裡，太陽能板的價格出現了前所未有的下降。

To give it context, in April and May you saw pricing near $0.60 per watt and in August that got down into more closely to $0.35, $0.40 and it has gone down south from there in September.

就背景而言，4 月和 5 月，您看到價格接近每瓦 0.60 美元，8 月則降至更接近 0.35 美元、0.40 美元，9 月則從該水平開始下降。

For whole host of different reasons and Mike had talked about in his prepared remarks.

由於各種不同的原因，麥克在他準備好的演講中談到了這一點。

So we did not build any more product during this.

所以在此期間我們沒有再生產任何產品。

We just got -- we just found ourselves challenged in the marketplace in selling through the inventory that we had (multiple speakers).

我們剛剛發現自己在市場上面臨著透過我們擁有的庫存（多個發言者）進行銷售的挑戰。

And so at the time of the first charge, your question is why we didn't take that same impact, we did not anticipate having to.

因此，在第一次充電時，你的問題是為什麼我們沒有受到同樣的影響，我們沒有預料到必須這樣做。

We had a market that had a value and a demand that supported our business.

我們的市場具有支持我們業務的價值和需求。

Now we don't.

現在我們不這樣做了。

And you have to remember this bankruptcy occurred April 20 and our earnings were like five days later we had to react very quickly.

你必須記住，這次破產發生在 4 月 20 日，我們的利潤大約是五天后，我們必須非常迅速地做出反應。

We immediately took 100% of the AR.

我們立即拿下了100%的AR。

And like Chris said we just got to work selling the inventory.

正如克里斯所說，我們只是開始銷售庫存。

It was a multi-hundred million dollar inventory balance and we had POs in hand for all of it with no financial implications.

這是一個數億美元的庫存餘額，我們手頭上有所有這些的採購訂單，沒有任何財務影響。

And then basically the market started to seeing that the panel pricing was starting to come down and started canceling the purchase orders.

然後基本上市場開始看到面板價格開始下降並開始取消採購訂單。

We had about a 60% cancellation rate.

我們的取消率約為 60%。

Of that multi-hundred million, that we had we sold off half of it and had no financial damage whatsoever.

在這數億美元中，我們賣掉了一半，沒有造成任何經濟損失。

And then as we got onto this quarter, like Chris said there was this huge drop in the price per panel and we got stuck with that.

然後，當我們進入本季時，就像克里斯所說，每塊面板的價格大幅下降，我們就陷入了困境。

It is unfortunate but we reacted quickly.

這很不幸，但我們反應很快。

We got the license to sell panels, even though they were SunEdison inventory and SunEdison name on it we got the license from them immediately to go get this inventory out of here.

我們獲得了銷售面板的許可證，儘管它們是 SunEdison 庫存並且上面有 SunEdison 的名字，但我們立即從他們那裡獲得了許可證，可以將這些庫存運出這裡。

We began moving on it and we moved actually pretty quickly.

我們開始繼續前進，而且進展得相當快。

But it fell apart at the very end and as a result we're stuck with what we have in terms of revaluation of that inventory.

但它最終崩潰了，因此我們在庫存重估方面陷入困境。

Yes, that makes a lot of sense.

是的，這很有意義。

And is there any impact on NEXTracker from this, whether it be for example negative or positive that prices go down for panel so people put in more of the actuators or are they just completely unrelated to each other?

這對 NEXTracker 是否有任何影響，例如面板價格下降，因此人們安裝了更多執行器，是負面影響還是正面影響，還是它們只是彼此完全無關？

Near term it's pretty big it's pretty good negative.

短期來看，它相當大，而且是相當好的負面影響。

I mean one of the problems we had with SunEdison is we were their preferred supplier.

我的意思是，我們與 SunEdison 遇到的問題之一是我們是他們的首選供應商。

We were their largest supplier.

我們是他們最大的供應商。

They were giving us all the business.

他們把所有的生意都交給我們了。

We had a great relationship and they were the fastest growing energy provider out there.

我們有著良好的關係，他們是成長最快的能源供應商。

So we were kind of a victim of our own success here.

所以我們在某種程度上是我們自己成功的受害者。

NEXTracker had close to 40%, 50% of its business from SunEdison when they went into the bankruptcy.

當SunEdison破產時，NEXTracker有近40%、50%的業務來自SunEdison。

So what we did is NEXTracker, just did that killer job of repositioning that demand very rapidly.

所以我們所做的是 NEXTracker，只是做了非常快速地重新定位需求的殺手級工作。

So over the course of, I would say maybe the last nine months maybe even the last six months, they have tripled the amount of customers they have.

因此，在整個過程中，我想說也許在過去九個月甚至在過去六個月，他們的客戶數量增加了兩倍。

And they have added -- they've doubled amount of countries.

他們還補充說，他們將國家數量增加了一倍。

I think Chris mentioned this earlier.

我想克里斯之前提到過這一點。

So they've actually completely recovered after just two quarters and it is actually an amazing bit of work by that team.

因此，他們實際上在短短兩個季度後就完全康復了，這實際上是該團隊的一項令人驚嘆的工作。

It shows the experience of their team and the ability to understand what the problem is and get right after it.

它展示了他們團隊的經驗以及理解問題所在並立即解決問題的能力。

And it is why while we said is -- we're going to end up over the coarse of the year our Solar business is going to be a growth business, even though we'd lose our number one customer both in NEXTracker and in the IEI energy business.

這就是為什麼雖然我們說的是 - 我們最終將在今年的粗略時期結束我們的太陽能業務將成為一項成長業務，儘管我們將失去 NEXTracker 和IEI 能源業務。

It is actually -- it is difficult to go through the charge of course, but the response was actually pretty remarkable and I think our team did a pretty killer job.

事實上，當然，要完成這項指控是很困難的，但實際上反應非常出色，我認為我們的團隊做得非常出色。

We'll have this back to a growth business.

我們將把它帶回增長型業務。

Hopefully with the margins above the IEI range by the end of this year, by the end of our fiscal year.

希望在今年年底，也就是我們的財政年度結束時，利潤率能夠高於 IEI 的範圍。

It is why the IEI margins itself we expect actually move into the target range.

這就是為什麼我們預計 IEI 利潤率本身實際上會進入目標範圍。

Largely it's on the back of recovering off of the solar damage in two quarters flat.

很大程度上，它是在兩個季度內從太陽損傷中恢復過來的。

Great thank you so much.

非常感謝。

And as far as long-term, one other thing Jim, sorry such a long answer.

就長期而言，另一件事吉姆，很抱歉回答這麼長。

As far as long-term implications, what you are seeing is virtually every solar field going up now is using trackers.

就長期影響而言，您所看到的幾乎每個正在建造的太陽能發電場都在使用追蹤器。

We actually have the number one market position in trackers in the world.

事實上，我們在追蹤器領域擁有全球第一的市場地位。

We believe it is the highest technology.

我們相信這是最高的技術。

We have augmented that technology with an acquisition that we did recently.

我們透過最近的收購增強了這項技術。

Which is to give us a predictive modeling solution.

這為我們提供了一個預測建模解決方案。

It is predictive modeling software using machine learning technology so that we can optimize for that energy harvest out of those systems that use our tracker.

它是使用機器學習技術的預測建模軟體，以便我們可以優化使用我們的追蹤器的系統的能量收集。

And as the prices go down in modules, it's going to make the likelihood of having a return on investment for those people putting up Solar farms to be even higher, be even better.

隨著組件價格的下降，建造太陽能發電場的人獲得投資回報的可能性會更高、更好。

We would expect acceleration in the implementation of solar on the back of lower and lower cost.

我們預計，隨著成本越來越低，太陽能的實施將會加速。

We view from a macro standpoint this is usually positive.

從宏觀角度來看，我們認為這通常是正面的。

So we just got to run through these couple of quarters and then we will be back and we're pretty excited about positioning in the thing.

因此，我們只需度過這幾個季度，然後我們就會回來，我們對這方面的定位感到非常興奮。

And we're super happy not to be positioned with, what we consider to be, a commodity position in the marketplace which is modules and cells for that matter.

我們非常高興沒有被定位為我們認為的市場中的商品地位，即模組和電池。

Great so much for the details thank you.

非常感謝您的詳細資訊。

Next question, Herve Francois, B. Riley.

下一個問題，Herve Francois，B. Riley。

High good evening.

高晚安。

Can you talk about, you said it before at your analyst day earlier this year, I do know if there's been an update.

你能談談嗎，你在今年早些時候的分析師日上說過，我知道是否有更新。

But like the percent of your customers currently receiving, benefiting from your overall Sketch-to-Scale services?

但是，就像您目前從整體草圖到比例服務中受益的客戶百分比一樣嗎？

I'm sorry the question was what percent of our customers are benefiting from Sketch-to-Scale is that right?

很抱歉，問題是我們的客戶中有多少百分比受益於按比例繪製，對嗎？

Yes, I think you had put out a percentage on the analyst day.

是的，我認為你在分析師日公佈了一個百分比。

I wanted to know if that percentage has changed much since there's been some movement withiin the variety and markets that you serve.

我想知道自從您所服務的品種和市場發生一些變化以來，這個百分比是否發生了很大變化。

Yes, yes, I think FY16 we were looking at 21%, may be it was, yes 21% and in FY13 we were down in and around 7%.

是的，是的，我認為 2016 財年我們的目標是 21%，也許確實是 21%，而 2013 財年我們下降了 7% 左右。

The key thing is, what does that look like going forward?

關鍵是，未來會怎樣？

We have to continue to drive confidence and capability and investment which we are doing actively by the way.

順便說一句，我們必須繼續推動信心、能力和投資，這是我們正在積極做的事情。

We are kind of forecasting a 35% range in FY 20.

我們預計 20 財年的成長幅度將達到 35%。

So we expect -- I don't have any better data than that today.

所以我們預計——我沒有比今天更好的數據了。

As we go through our three-year planning process over the course of the next couple months, we will update that of course and see what it looks like.

當我們在接下來的幾個月完成我們的三年規劃過程時，​​我們當然會更新它並看看它是什麼樣子。

We will make sure we report out to you in our May analyst day, what that new number looks like.

我們將確保在五月的分析師日向您報告新數字的情況。

You can expect to get almost like a report card of what the results were for FY17 and what we then expect FY 20 to look like relative to what we told you last time.

您可以期待得到幾乎像成績單一樣的結果，其中包含 2017 財年的結果以及我們對 20 財年相對於我們上次告訴您的情況的預期。

Right now it is well on track.

目前一切進展順利。

We think the strategy is a fabulous one.

我們認為這項戰略非常棒。

We're investing a lot of the strategy to make sure it happens.

我們正在策略上投入大量資金以確保實現這一目標。

We think it actually moves the margin of the company, as we're seeing the margins in the company move.

我們認為這實際上改變了公司的利潤率，因為我們看到公司的利潤率發生了變化。

I think it is well on track.

我認為一切都步入正軌了。

Got it, thanks very much.

明白了，非常感謝。

And is Bose, as a customer as you really start to ramp with them, are they a customer that's going to be benefiting from your entire Sketch-to-Scale services?

Bose，作為您真正開始與他們合作的客戶，他們是否會從您的整個 Sketch-to-Scale 服務中受益？

Yes, they will.

是他們會。

We are already involved in a number of different projects where we are actually co-innovating with them with the design team.

我們已經參與了許多不同的項目，實際上我們正在與設計團隊共同創新。

As part of the transaction we did with Bose, we actually moved a significant portion of engineering across to our team to help support that whole Sketch-to-Scale position with Bose.

作為我們與 Bose 交易的一部分，我們實際上將很大一部分工程工作移交給了我們的團隊，以幫助支援 Bose 的整個 Sketch-to-Scale 職位。

They are very much aligned.

他們非常一致。

It is a large part of the business proposition to start with.

這是商業主張的很大一部分。

It's not just about a factory, it's about bringing the engineering talent and co-collaborating with their engineers and our engineers together in a very structured way.

這不僅僅是一個工廠的問題，而是以一種非常結構化的方式聚集工程人才並與他們的工程師和我們的工程師合作。

So they are very much part of the Sketch-to-Scale transition that we are going through.

因此，它們在很大程度上是我們正在經歷的從草圖到比例過渡的一部分。

Got it and then just one last one for me.

明白了，然後就給我最後一張。

Last quarter you talked about how I think you're going to begin ramping with some new program wins in wearables.

上個季度，您談到了我認為您將如何開始在穿戴式裝置領域贏得一些新項目的勝利。

Did that occur in your most recent quarter here?

這發生在您最近一個季度嗎？

New program wins with wearables.

新計劃憑藉可穿戴設備獲勝。

So I don't know how many programs we have in wearables today, but it is a lot.

所以我不知道今天我們在穿戴式裝置上有多少程序，但確實很多。

I don't know which ones specifically we were talking to, I'm sorry about that.

我不知道我們具體是在和哪些人交談，對此我感到很抱歉。

But we probably had two, three different wearable customers every single quarter that we add to our portfolio.

但每季我們可能都會有兩到三個不同的穿戴式裝置客戶加入我們的產品組合。

I don't know which one specifically you are referring to but we continue to make a lot of progress.

我不知道您具體指的是哪一個，但我們繼續取得很大進展。

We continue to do more and more product categories and we are really excited about some of the capabilities and technologies.

我們繼續做越來越多的產品類別，我們對其中的一些功能和技術感到非常興奮。

You might be referring to Mass Holdings, which is a company out of Sri Lanka that does a significant amount of fabric, and we announced a strategic relationship with Mass Holdings where we would integrate electronics and technology into what their capabilities are, which are fabrics.

您可能指的是 Mass Holdings，這是一家來自斯里蘭卡的公司，生產大量布料，我們宣布與 Mass Holdings 建立戰略關係，我們將把電子和技術整合到他們的布料能力中。

So that is something that we announced just about three or four months ago.

這就是我們大約三、四個月前宣布的事情。

But that is also well on track as we think about integrating some of our electronic technologies into fabrics.

但當我們考慮將一些電子技術整合到織物中時，這也已步入正軌。

Again, good strong technology.

再次，技術好強。

A bunch of customers that we add virtually every quarter we're seeing a lot more different applications in the industry for wearables.

我們幾乎每季都會增加一批客戶，我們在穿戴式裝置產業中看到了更多不同的應用程式。

Operator, I see we're here at the top of the hour we will go ahead and take one last question.

接線員，我看到我們現在已經到了，我們將繼續回答最後一個問題。

The question will come from the line of Paul Coster, JPMorgan.

這個問題將來自摩根大通的保羅科斯特。

Thanks for squeezing in.

謝謝你擠進來。

This is Paul Chung on for Paul Coster thanks for taking my question.

我是保羅鐘 (Paul Chung) 替保羅科斯特 (Paul Coster) 發言，感謝您提出我的問題。

Just on the Nike opportunity are you having discussions with other major players in the space?

就耐吉的機會而言，您是否正在與該領域的其他主要參與者進行討論？

Are they kind of waiting on the sidelines to see if this partnership is successful?

他們是否觀望這種夥伴關係是否成功？

How big do you think the opportunity is beyond Nike terms of annual revenues and margin contributions?

從年收入和利潤貢獻來看，您認為耐吉的機會有多大？

Thank you.

謝謝。

Yes, as it relates to shoes, we're only working with Nike.

是的，就鞋子而言，我們只與耐吉合作。

We're actually doing a pretty significant reinvention.

我們實際上正在進行一項相當重大的改造。

It is all hands on deck to go make that reinvention of how manufacturing happens with Nike shoes.

所有人都齊心協力，徹底改造耐吉鞋的製造方式。

We don't have the ability or the appetite to expand that into other customers.

我們沒有能力也沒有興趣擴展到其他客戶。

So we are exclusive with Nike.

所以我們是耐吉的獨家合作夥伴。

They have like 60% of the market, so pretty good spot to be.

他們佔據了大約 60% 的市場，所以這是一個非常好的位置。

That being said, there is a lot of wearables and that is -- shoes.

話雖這麼說，有很多可穿戴設備，那就是——鞋子。

But there are many different fabrics and wearable technologies that we're working on with what I just mentioned from the last question from Francois.

但我們正在研究許多不同的面料和可穿戴技術，正如我在弗朗索瓦的最後一個問題中提到的那樣。

And many other different product categories and things that we are working on.

以及我們正在研究的許多其他不同的產品類別和事情。

But as it relates to shoes, we're just going to be focused on Nike.

但就鞋子而言，我們將重點放在耐吉。

I think it will provide a tremendous growth and an element of stable growth for many, many years for us.

我認為這將為我們帶來巨大的成長，並為我們帶來多年的穩定成長。

And we have clearly highlighted in the past and discussions that this is a business that is going to be a billion-dollar plus business for us.

我們在過去和討論中已經明確強調，這對我們來說將是一項價值十億美元以上的業務。

They will be a top 10 customer for us in the next couple of years.

他們將成為我們未來幾年的十大客戶。

And again as Mike said, who better than to be with the iconic brand leader such as Nike?

正如麥克所說，還有誰比與耐吉這樣的標誌性品牌領導者合作更好呢？

We're going to continue to give you guys updates as to the progress we make with this.

我們將繼續向大家通報我們在這方面所取得的進展。

But again this is a year of investment, a year of innovation as we continue to explore this relationship and move it forward.

但這又是投資的一年、創新的一年，我們將繼續探索這種關係並推動其向前發展。

Nothing has changed in terms of our excitement about what this brings to our portfolio as we move into our future.

當我們邁向未來時，我們對這對我們的投資組合帶來的興奮並沒有改變。

So with that, let us end the session.

那麼，讓我們結束會議。

I want to thank everybody for their questions and their interest in Flex.

我要感謝大家提出的問題以及他們對 Flex 的興趣。

You know Flex involving our Sketch-to-Scale strategy it remains firmly on track as we just discussed.

您知道 Flex 涉及我們的 Sketch-to-Scale 策略，正如我們剛才討論的那樣，它仍然堅定地走在正軌上。

This quarter was our twelfth straight quarter of year-over-year adjusted operating margin growth.

本季是我們調整後營業利潤率連續第十二個季度實現年增。

Our portfolio diversification has never been better with our lowest concentration of top-10 customers.

我們的投資組合多元化從未如此出色，前 10 名客戶的集中度最低。

Our free cash flow continues to grow on a sustainable basis and it remains the superb enabler of our consistent capital return program to shareholders.

我們的自由現金流繼續在可持續的基礎上成長，它仍然是我們對股東持續資本回報計劃的絕佳推動者。

So we remain structurally and strategically position to deliver meaningful earnings and margin power.

因此，我們在結構和策略上仍然處於能夠提供有意義的收益和利潤率的地位。

With that we would like to end the call, and thanks everybody for their attendance.

至此，我們結束通話，並感謝大家的出席。

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。