台灣國際航電 (GRMN) 2019 Q1 法說會逐字稿

Good day, ladies and gentlemen, and welcome to the Garmin Limited's First Quarter 2019 Earnings Conference Call.

女士們先生們，美好的一天，歡迎來到 Garmin Limited 2019 年第一季度收益電話會議。

(Operator Instructions) As a reminder, this conference call is being recorded.

（操作員說明）作為提醒，正在錄製此電話會議。

I would now like to turn the conference over to Teri Seck, Manager of Investor Relations.

我現在想將會議轉交給投資者關係經理 Teri Seck。

Ma'am, you may begin.

女士，您可以開始了。

Good morning.

早上好。

We would like to welcome you to Garmin Limited's First Quarter 2019 Earnings Call.

歡迎您參加 Garmin Limited 2019 年第一季度財報電話會議。

Please note that the earnings press release and related slides are available at Garmin's Investor Relations site on the internet at www.garmin.com/stock.

請注意，收益新聞稿和相關幻燈片可在 Garmin 的投資者關係網站 www.garmin.com/stock 上獲取。

An archive of the webcast and related transcript will also be available on our website.

我們的網站上也將提供網絡廣播和相關文字記錄的存檔。

In the first quarter of fiscal 2019, we refined the methodology used to allocate certain selling, general and administrative expenses to the segments.

在 2019 財年第一季度，我們改進了用於將某些銷售、一般和管理費用分配給各部門的方法。

The composition of segments did not change.

細分市場的構成沒有變化。

Prior year amounts are presented as they were originally reported as it is not practical to accurately restate prior period activity in accordance with the refined allocation methodology.

上一年的金額按最初報告的方式列示，因為根據改進後的分配方法準確重述上一期間的活動是不切實際的。

For comparative purposes, we had included in the appendix of this webcast an estimate of the segment operating income impact if the refined allocation methodology would have been used in 2018 for both the 13 weeks ended March 31, 2018, and the 52 weeks ended December 29, 2018.

出於比較目的，我們在本次網絡廣播的附錄中包含瞭如果在 2018 年截至 2018 年 3 月 31 日的 13 周和截至 12 月 29 日的 52 週都使用改進的分配方法，對部門營業收入影響的估計, 2018.

There was no change to either the consolidated SG&A expenses nor the consolidated operating income.

合併的 SG&A 費用和合併的營業收入都沒有變化。

This earnings call includes projections and other forward-looking statements regarding Garmin Limited and its business.

本次財報電話會議包括有關 Garmin Limited 及其業務的預測和其他前瞻性陳述。

In these statements regarding our future financial position, revenues, earnings, gross and operating margins and future dividends, market shares, product introduction, future demand for our products and plans and objectives are forward-looking statements.

在這些關於我們未來財務狀況、收入、收益、毛利率和營業利潤率以及未來股息、市場份額、產品介紹、我們產品的未來需求以及計劃和目標的陳述中，這些陳述都是前瞻性陳述。

The forward-looking events and circumstances discussed in this earnings call may not occur, and actual results could differ materially as a result of risk factors affecting Garmin.

本次財報電話會議中討論的前瞻性事件和情況可能不會發生，並且由於影響 Garmin 的風險因素，實際結果可能存在重大差異。

Information concerning these risk factors is contained in our Form 10-K filed with the Securities and Exchange Commission.

有關這些風險因素的信息包含在我們向美國證券交易委員會提交的 10-K 表格中。

Presenting on behalf of Garmin Limited this morning are Cliff Pemble, President and Chief Executive Officer; and Doug Boessen, Chief Financial Officer and Treasurer.

今天上午代表 Garmin Limited 出席的有總裁兼首席執行官 Cliff Pemble；首席財務官兼財務主管 Doug Boessen。

At this time, I would like to turn the call over to Cliff Pemble.

在這個時候，我想把電話轉給 Cliff Pemble。

Thank you, Teri, and good morning, everyone.

謝謝泰瑞，大家早上好。

As announced earlier today, Garmin reported record revenue for the first quarter of 2019 with growth in operating income and EPS.

正如今天早些時候宣布的那樣，Garmin 報告了 2019 年第一季度的創紀錄收入，營業收入和每股收益均有所增長。

Consolidated revenue came in at $766 million, up 8% over the prior year.

合併收入為 7.66 億美元，比上年增長 8%。

Revenue for marine, aviation, fitness and outdoor collectively increased 12% year-over-year.

航海、航空、健身和戶外的收入同比增長 12%。

Gross margin was 59% compared to 60% in the prior year.

毛利率為 59%，上年為 60%。

Operating margin was 19.8% and operating income grew 6% over the prior year.

營業利潤率為 19.8%，營業收入比上年增長 6%。

This resulted in GAAP EPS of $0.74.

這導致 GAAP 每股收益為 0.74 美元。

Pro forma EPS was $0.73, up 7% over the prior year.

預計每股收益為 0.73 美元，比上年增長 7%。

We are encouraged by our first quarter results.

我們對第一季度的業績感到鼓舞。

Since Q1 represents the lowest seasonal quarter of our financial year and much of the year remains ahead of us, we are maintaining the guidance issued in February.

由於第一季度是我們財政年度中季節性最低的季度，而且今年的大部分時間都在我們面前，我們維持 2 月份發布的指引。

Before moving onto segment highlights, I want to mention the recognition we received recently from Forbes, who ranked Garmin as one of the top 5 best employers in America.

在進入細分市場亮點之前，我想提一下我們最近從福布斯獲得的認可，福布斯將 Garmin 列為美國最佳雇主前 5 名之一。

Speaking on behalf of all Garmin employees, we are truly honored to receive this recognition.

我們代表所有 Garmin 員工發言，非常榮幸獲得這一認可。

Garmin employees are passionate about what we do and we share a deep commitment to serving our customers and each other.

Garmin 員工對我們的工作充滿熱情，我們共同致力於為客戶和彼此服務。

Of the many qualities that make Garmin a great place to work, it's the commitment of our employees that sets us apart.

在使 Garmin 成為理想工作場所的眾多品質中，讓我們脫穎而出的是我們員工的承諾。

Moving next to our segment highlights.

接下來是我們的細分亮點。

Revenue in the marine segment increased 18% on strong demand for chartplotters and Panoptix LiveScope sonars.

由於對海圖儀和 Panoptix LiveScope 聲納的強勁需求，海事部門的收入增長了 18%。

Gross margin was 58% and operating margin improved to 19%.

毛利率為 58%，營業利潤率提高至 19%。

During the quarter, we announced the ECHOMAP ultra series, combining built-in Panoptix LiveScope compatibility with new mapping content.

本季度，我們發布了 ECHOMAP ultra 系列，將內置的 Panoptix LiveScope 兼容性與新的地圖內容相結合。

Also in our first year as their exclusive electronic supplier, we were named the 2018 supplier of the year by Independent Boat Builders Incorporated, the boating industry's largest purchasing cooperative.

同樣在我們作為他們的獨家電子供應商的第一年，我們被造船業最大的採購合作社 Independent Boat Builders Incorporated 評為 2018 年度供應商。

It's an honor to be recognized by the IBBI.

很榮幸得到 IBBI 的認可。

And I want to thank our marine team for delivering superior products, service and support to our customers.

我要感謝我們的海事團隊為我們的客戶提供卓越的產品、服務和支持。

Looking next at aviation.

接下來看航空。

Revenue increased 17%, driven by growth in both aftermarket and OEM product categories.

受售後市場和 OEM 產品類別增長的推動，收入增長了 17%。

Gross and operating margin remained strong at 75% and 34%, respectively.

毛利率和營業利潤率分別保持在 75% 和 34% 的強勁水平。

During the quarter, we delivered the new G1000 NXi upgrade for the Citation Mustang, which is the first business jet to adopt our G1000 system.

本季度，我們為 Citation Mustang 交付了新的 G1000 NXi 升級版，這是第一架採用我們 G1000 系統的公務機。

We announced compelling new products such as the GPS 175, GNX 375 and the G3X Touch, which expand the addressable market for our retrofit systems.

我們發布了引人注目的新產品，例如 GPS 175、GNX 375 和 G3X Touch，它們擴大了我們改裝系統的潛在市場。

Our aviation team was also recognized as an outstanding supplier to the industry.

我們的航空團隊也被公認為該行業的傑出供應商。

At the recent Embraer Suppliers Conference, we were named Supplier of the Year for electrical systems.

在最近的 Embraer 供應商大會上，我們被評為電氣系統年度供應商。

This is the 10th supplier award we received from Embraer, and again, reflects the strength of our products, service and support.

這是我們從巴西航空工業公司獲得的第 10 次供應商獎，再次反映了我們產品、服務和支持的實力。

I want to thank our aviation team for their deep commitment to being the very best.

我要感謝我們的航空團隊，他們致力於成為最好的。

Looking next at fitness.

接下來看健身。

Revenue increased 9%, driven primarily by strong growth in our wearable categories.

收入增長 9%，主要受我們可穿戴類別的強勁增長推動。

Gross margin was 50% and operating margin was 10% in the quarter.

本季度毛利率為 50%，營業利潤率為 10%。

Margins decreased due to a combination of factors, including lower selling prices and a shift in mix as certain products in our consumer wellness categories experienced significant year-over-year growth.

利潤率下降的原因有多種，包括較低的銷售價格和組合的轉變，因為我們的消費者健康類別中的某些產品經歷了顯著的同比增長。

In early April, we completed the acquisition of Tacx, expanding our reach into the indoor cycling and training market.

4 月初，我們完成了對 Tacx 的收購，將我們的業務範圍擴大到室內自行車和訓練市場。

Yesterday, we announced a fully refreshed line of running watches with the Forerunner 45 in 2 sizes, the Forerunner 245 with optional music storage and the Forerunner 945, which has it all.

昨天，我們發布了全新的跑步手錶系列，包括 2 種尺寸的 Forerunner 45、帶可選音樂存儲功能的 Forerunner 245 和功能齊全的 Forerunner 945。

These new smart watches offer features that will appeal to a broad range of running enthusiasts.

這些新型智能手錶提供的功能將吸引廣大跑步愛好者。

Also, we announced the availability of our menstrual cycle tracking feature.

此外，我們還宣布推出月經週期跟踪功能。

This new feature was developed by Garmin women focusing on the special needs of those who are highly active.

這項新功能由 Garmin 女性開發，專注於高度活躍人士的特殊需求。

This feature will help women make connection between their current cycle phase, physical and emotional symptoms and their overall well-being.

此功能將幫助女性將她們當前的周期階段、身體和情緒症狀與她們的整體健康狀況聯繫起來。

We also announced that we are cooperating with the University of Kansas on research to better understand how wearables and the biometric data they produce can help women manage and improve their health.

我們還宣布，我們正在與堪薩斯大學合作開展研究，以更好地了解可穿戴設備及其產生的生物識別數據如何幫助女性管理和改善健康。

Moving to outdoor.

搬到室外。

Revenue increased 7% on strength across multiple product categories.

多個產品類別的收入增長了 7%。

The outdoor segment generated strong gross and operating margins of 63% and 27%, respectively.

戶外業務的毛利率和營業利潤率分別達到 63% 和 27%。

During the quarter, we introduced MARQ, a collection of 5 premium smart tool watches.

本季度，我們推出了 MARQ，這是一個包含 5 款高級智能工具手錶的系列。

These watches were created from our active lifestyle DNA to inspire adventurers in flying, racing, sailing, exploring and sports performance.

這些腕錶源自我們積極的生活方式 DNA，旨在激發飛行、賽車、航海、探險和運動表現方面的冒險家。

Also, we recently announced the Approach S40, a stylish golf watch, featuring a color touchscreen display and smart watch capabilities.

此外，我們最近還發布了 Approach S40，這是一款時尚的高爾夫手錶，具有彩色觸摸屏和智能手錶功能。

Looking finally at the auto segment.

最後看看汽車領域。

Revenue decreased 10% for the quarter due to the ongoing decline of the PND market, partially offset by growth in certain specialty product lines.

由於 PND 市場的持續下滑，本季度收入下降了 10%，部分被某些專業產品線的增長所抵消。

Our global PND market share remains very strong.

我們的全球 PND 市場份額仍然非常強勁。

Gross margin was 45% and operating margin improved to 6%.

毛利率為 45%，營業利潤率提高至 6%。

During the quarter, we launched the BC 40, a new wireless backup camera that's easy to install and provides drivers with a wide clear view behind their vehicle.

本季度，我們推出了 BC 40，這是一款易於安裝的新型無線倒車攝像頭，可為駕駛員提供車後廣闊的清晰視野。

Also during the quarter, we announced that BMW selected us as their lead design and production partner of entertainment modules for the BMW group, validating us as a Tier 1 supplier to the world's most respected brands.

同樣在本季度，我們宣布 BMW 選擇我們作為 BMW 集團娛樂模塊的主要設計和生產合作夥伴，證明我們是世界上最受尊敬的品牌的一級供應商。

I congratulate our automotive team and thank them for their hard work and dedication in securing this win.

我祝賀我們的汽車團隊，並感謝他們為贏得這場胜利所做的辛勤工作和奉獻精神。

That concludes my remarks.

我的發言到此結束。

Next, Doug will walk you through additional details on our financial results.

接下來，Doug 將向您介紹我們財務業績的更多詳細信息。

Doug?

道格？

Thanks, Cliff.

謝謝，克里夫。

Good morning, everyone.

大家，早安。

I begin by reviewing our first quarter financial results, move to comments on the balance sheet, cash flow statement and taxes.

我首先回顧我們第一季度的財務業績，然後談談對資產負債表、現金流量表和稅收的評論。

We posted revenue of $766 million in the first quarter, representing 8% increase year-over-year.

我們公佈第一季度收入為 7.66 億美元，同比增長 8%。

Gross margin was 59%, 100 basis point decrease from the prior year.

毛利率為 59%，較上年下降 100 個基點。

Operating expense as a percentage of sales was 39.2%, 80 basis point decrease from the prior year.

營業費用佔銷售額的百分比為 39.2%，比上年下降 80 個基點。

Operating income was $151 million, a 6% increase year-over-year.

營業收入為 1.51 億美元，同比增長 6%。

Operating margin was 19.8%, relatively consistent to the prior year.

營業利潤率為 19.8%，與上一年基本持平。

Our GAAP EPS was $0.74, our pro forma EPS was $0.73.

我們的 GAAP 每股收益為 0.74 美元，預計每股收益為 0.73 美元。

Next, we'll look at the first quarter revenue by segment.

接下來，我們將按部門查看第一季度的收入。

We achieved record first quarter revenue of $766 million.

我們實現了創紀錄的第一季度收入 7.66 億美元。

Consolidated revenue grew 8%, led by double-digit growth in both marine and aviation.

綜合收入增長 8%，這主要得益於海運和航空領域的兩位數增長。

Also, both the fitness and outdoor segments achieved solid growth during the quarter.

此外，健身和戶外領域在本季度均實現了穩健增長。

On a combined basis, marine, aviation, fitness and outdoor were up 12% compared to the prior year quarter.

與去年同期相比，航海、航空、健身和戶外綜合增長了 12%。

Looking next, the first quarter revenue and operating income charts.

接下來看第一季度的收入和營業收入圖表。

Collectively, marine, aviation, fitness and outdoor segments contributed 83% of total revenue in the first quarter of 2019 compared to 80% in the prior year quarter.

總的來說，海洋、航空、健身和戶外領域在 2019 年第一季度貢獻了總收入的 83%，而去年同期為 80%。

Marine grew from 16% to 17%, aviation grew from 21% to 22% and fitness grew from 23% to 24%.

海洋從 16% 增長到 17%，航空從 21% 增長到 22%，健身從 23% 增長到 24%。

You can see from the charts, it illustrate our profit mix by segment.

你可以從圖表中看到，它說明了我們按部門劃分的利潤組合。

Marine, aviation, fitness and outdoor segments collectively delivered 95% of operating income in the first quarter of 2019 compared to 98% in the first quarter of 2018.

2019 年第一季度，海洋、航空、健身和戶外領域共貢獻了 95% 的營業收入，而 2018 年第一季度為 98%。

Looking next at operating expenses.

接下來看運營費用。

Our first quarter operating expense increased by $16 million or 6%.

我們第一季度的運營費用增加了 1600 萬美元或 6%。

Research and development increased $4 million year-over-year due to investments in engineering resources.

由於對工程資源的投資，研發費用同比增加了 400 萬美元。

Our advertising expense increased approximately $3 million year-over-year and represented 3.6% of sales, consistent with the prior year quarter.

我們的廣告費用同比增長約 300 萬美元，佔銷售額的 3.6%，與上一季度持平。

SG&A was up $10 million or 16.5% of sales, consistent with prior quarter.

SG&A 增長 1000 萬美元，佔銷售額的 16.5%，與上一季度持平。

The increase was primarily due to legal-related costs and personnel-related expenses.

增加的主要原因是法律相關費用和人員相關費用。

A few highlights on the balance sheet, cash flow statement and taxes.

資產負債表、現金流量表和稅收的一些亮點。

We ended the quarter with cash and marketable securities of approximately $2.7 billion.

本季度結束時，我們擁有約 27 億美元的現金和有價證券。

Accounts receivable decreased sequentially to $453 million following a seasonally strong fourth quarter.

在第四季度季節性強勁後，應收賬款環比下降至 4.53 億美元。

Inventory balance increased on a sequential and year-over-year basis as we prepare for the seasonally strong second quarter upcoming product launches.

隨著我們為即將推出的季節性強勁的第二季度產品發布做準備，庫存餘額環比和同比增加。

During the first quarter of 2019, we generated free cash flow of $134 million, $53 million decrease from the prior year quarter.

2019 年第一季度，我們產生了 1.34 億美元的自由現金流，比去年同期減少 5300 萬美元。

Also during the quarter, we paid dividends of $201 million, which includes both the December 2018 and March 2019 payments.

同樣在本季度，我們支付了 2.01 億美元的股息，其中包括 2018 年 12 月和 2019 年 3 月的付款。

During the first quarter of 2019, we reported an effective tax rate of 15.7% compared to 16% in the prior year quarter.

2019 年第一季度，我們報告的有效稅率為 15.7%，而去年同期為 16%。

This concludes our formal remarks.

我們的正式發言到此結束。

Shannon, can you please open the line for Q&A?

香農，你能打開問答熱線嗎？

(Operator Instructions) Our first question comes from Ben Bollin with Cleveland Research.

（操作員說明）我們的第一個問題來自克利夫蘭研究中心的 Ben Bollin。

I wanted to start in the fitness business.

我想開始從事健身業務。

Could you talk a little bit about the mix overall?

你能談談整體的混音嗎？

What drove the higher mix of kind of wellness devices in the quarter?

是什麼推動了本季度健康設備種類的增加？

What were the incremental legal expenses within that business in the quarter?

該季度該業務的增量法律費用是多少？

And does that persist?

這會持續嗎？

And then any thoughts on margin trajectory through the year with new products launching.

然後是隨著新產品的推出，對全年利潤率軌蹟的任何想法。

And then I have a follow up.

然後我有一個跟進。

Yes.

是的。

So in terms of mix, Ben, we saw strong sales of our vívomove HR line as well as our vívoactive 3. So those were drivers of mix towards the consumer wellness categories.

因此，就組合而言，Ben，我們看到 vívomove HR 系列和 vívoactive 3 的強勁銷售。因此，這些是消費者健康類別組合的驅動力。

In terms of legal, we wouldn't comment on specifics other than to say we wouldn't expect a repeat of some of these.

在法律方面，我們不會對細節發表評論，只是說我們不希望重複其中的一些。

But again, the environment's unpredictable, so we don't really know in the future what additional things we might face, but we view at as somewhat of a onetime thing.

但同樣，環境是不可預測的，所以我們真的不知道未來我們可能會面臨什麼額外的事情，但我們認為這是一次性的事情。

And in terms of margin trajectory, depending on how the mix goes, we would probably still anticipate some downward pressure on overall fitness margins, probably in the low- to mid-50s range, but that will depend on, again, the overall product mix and the sales trajectory of some of those product lines.

就利潤率軌跡而言，根據產品組合的進展情況，我們可能仍預計整體健身利潤率會面臨一些下行壓力，可能在 50 多歲左右的範圍內，但這將再次取決於整體產品組合以及其中一些產品線的銷售軌跡。

Okay.

好的。

And within outdoor, any thoughts you have on the initial interest for MARQ?

在戶外，您對 MARQ 的最初興趣有什麼想法？

Or how you feel about the current lineup and what MARQ does to the overall TAM as you move into these higher price point products?

或者，當您轉向這些更高價位的產品時，您對當前的陣容有何看法，以及 MARQ 對整體 TAM 有何影響？

Well, we feel like the initial interest in MARQ has been very encouraging.

嗯，我們覺得最初對 MARQ 的興趣非常鼓舞人心。

So we're now starting to deliver those devices into the field.

所以我們現在開始將這些設備交付到現場。

So we'll start to see some impact from that.

所以我們將開始看到一些影響。

In terms of what it does to our overall product line, I think it expands our reach towards the upper end of the watch market in terms of where we're at today, obviously, not the upper end of where watches are in total.

就它對我們整個產品線的影響而言，我認為它擴大了我們對手錶市場高端的影響，就我們今天所處的位置而言，顯然，而不是手錶總數的高端。

But for us, it expands our reach and we feel very good about it.

但對我們來說，它擴大了我們的影響範圍，我們對此感覺非常好。

We received high marks in terms of the design of the product and the materials we've selected.

我們在產品設計和所選材料方面獲得了很高的評價。

So we feel very good about it.

所以我們對此感覺很好。

Our next question comes from Rich Valera with Needham & Company.

我們的下一個問題來自 Needham & Company 的 Rich Valera。

I was hoping you could comment on the BMW deal and sort of how you'll get paid on that?

我希望你能對寶馬交易發表評論，以及你將如何獲得報酬？

And what you'll actually get paid on?

你實際上會得到什麼報酬？

Well, I think maybe you're referring to some capitalized costs, so that's basically an agreement that we have to be able to recover some of our R&D costs that go into that project and those will be capitalized as we go along.

好吧，我想也許你指的是一些資本化成本，所以這基本上是一項協議，我們必須能夠收回進入該項目的部分研發成本，並且這些成本將在我們進行時資本化。

But in terms of -- once we reach the production point, then it's like any other arrangement where we sell a product and they pay us for it.

但是就-一旦我們到達生產點，就像我們銷售產品並他們付錢給我們的任何其他安排一樣。

Yes.

是的。

I guess the question was what exactly will you be selling them, software, hardware?

我想問題是你到底要賣什麼，軟件，硬件？

If you could kind of just give us a sense of the magnitude of what will be going into each vehicle.

如果你能讓我們了解一下每輛車的規模。

Well, it's the main media computing modules that go into every vehicle and it drives the instrument cluster as well as the center stack.

好吧，它是進入每輛車的主要媒體計算模塊，它驅動儀錶盤和中央堆棧。

And in some configurations, it will also drive infotainment in the backseat.

在某些配置中，它還會驅動後座的信息娛樂系統。

Got it.

知道了。

And then just on aviation.

然後就是航空。

If you can kind of give us an update on your thoughts on the ADS-B, one, the sort of contribution this year and then how you think about that going into next year post the mandate?

如果您能向我們介紹一下您對 ADS-B 的最新想法，第一，今年的貢獻類型，然後您如何看待授權後的明年？

Well, we don't break it out by categories but it is generating growth.

好吧，我們沒有按類別細分，但它正在產生增長。

It's not the only growth driver though in the overall aviation segment because we're also seeing strong demand for retrofit systems, integrated cockpit systems as well as display systems and GPS systems that go in the cockpit.

它並不是整個航空領域唯一的增長動力，因為我們還看到對改裝系統、集成駕駛艙系統以及駕駛艙內的顯示系統和 GPS 系統的強勁需求。

We think the trajectory is still strong for this year.

我們認為今年的發展軌跡仍然強勁。

Although towards the back half of the year, there could be some tailing off of the growth rates.

儘管在今年下半年，增長率可能會有所放緩。

We do see that in 2020, the market will probably continue somewhat because we don't think that every airplane that wants to be equipped will be, but we'll have to see how that goes as we reach that point.

我們確實看到，到 2020 年，市場可能會繼續發展，因為我們認為並不是每架想要裝備的飛機都會如此，但我們必須看看在達到這一點時情況如何。

Our next question comes from Charlie Anderson with Dougherty & Company.

我們的下一個問題來自 Dougherty & Company 的 Charlie Anderson。

Just going back to the wearables and some of the gross margins you're seeing there.

回到可穿戴設備和你在那裡看到的一些毛利率。

I know, Cliff, you've had sort of a multiyear trend of people going maybe more upmarket on wearables as opposed to downmarket.

我知道，克里夫，你有一種多年趨勢，人們可能更傾向於購買可穿戴設備的高端市場，而不是低端市場。

I wonder if we're seeing a reversal of that trend at all or this is just a function of where we are point in time on the product cycle.

我想知道我們是否看到了這種趨勢的逆轉，或者這只是我們在產品週期中所處時間點的函數。

And then I've got a follow-up.

然後我有一個後續行動。

Well, actually, in the tracker category, it is people going upmarket because they're moving towards the higher end vívomove HR as opposed to a basic tracker band.

好吧，實際上，在智能手環類別中，人們正在走向高端市場，因為他們正在轉向更高端的 vívomove HR，而不是基本的智能手環。

It so happens that the margins on those products are lower than the headline of fitness.

碰巧這些產品的利潤低於健身的標題。

So depending on mix, of course, that impacts the overall segment margin.

因此，當然，取決於組合，這會影響整個細分市場的利潤率。

Okay.

好的。

Great.

偉大的。

And then just a housekeeping question for Doug.

然後只是道格的家政問題。

I noticed in the Q that we did see that reclassification of SG&A a little bit more to aviation, a little bit less to marine.

我在 Q 中註意到，我們確實看到 SG&A 的重新分類更多地用於航空，而不是海洋。

I wonder if you could just walk us through the basis behind that change.

我想知道您是否可以向我們介紹這種變化背後的基礎。

Sure.

當然。

Actually, it's refining our methodology for the general administration expenses.

實際上，它正在改進我們的一般管理費用方法。

And as time goes by, there's evolution of our different segments, different dynamics with it, some of which relating to Olathe facility expansion here, some of which is aviation becoming a bigger piece of our business international.

隨著時間的推移，我們的不同部門發生了演變，隨之而來的是不同的動力，其中一些與這裡的奧拉西工廠擴建有關，其中一些與航空業成為我們國際業務中更大的一部分有關。

So looking at all those different dynamics, we took a look at allocating our administrative expenses where we thought to each one of our segments.

因此，著眼於所有這些不同的動態，我們著眼於將我們認為的管理費用分配給我們的每個部門。

So yes, there are incremental additional expenses being allocated to aviation.

所以是的，有增量的額外費用分配給航空。

Our next question comes from Paul Coster with JP Morgan.

我們的下一個問題來自摩根大通的保羅科斯特。

This is Paul Chung on for Coster.

這是 Coster 的 Paul Chung。

So I've a couple.

所以我有一對。

On marine, where you're kind of seeing pockets of growth, whether it's region, products, subsets of the boating market.

在海洋方面，無論是區域、產品還是划船市場的子集，你都會看到一些增長點。

And then given the strong start for both marine and aviation for the year, how's your outlook for 10% growth for both segments changed at all?

然後鑑於今年海運和航空業的強勁開局，您對這兩個領域 10% 增長的前景有何改變？

Yes.

是的。

So in terms of marine growth and trying to add a little more color to that, I would say it's strong globally.

因此，就海洋增長和試圖為其添加更多色彩而言，我想說它在全球範圍內都很強勁。

Particularly, it's strong here in the U.S. market.

特別是，它在美國市場表現強勁。

A large majority of our revenue is generated in the Americas market.

我們的大部分收入來自美洲市場。

And so products like Panoptix LiveScope and our chartplotters are driving some significant growth there.

因此，像 Panoptix LiveScope 和我們的海圖儀這樣的產品正在推動那裡的一些顯著增長。

In terms of our outlook for both marine and aviation, as we mentioned we're not ready to think about guidance yet because it's still early in the year, but we're encouraged by the results we've seen in both of those segments.

就我們對海洋和航空業的展望而言，正如我們所提到的，我們還沒有準備好考慮指導，因為現在還處於今年年初，但我們對這兩個領域的結果感到鼓舞。

I would say as I mentioned earlier in aviation that towards the back half of the year, we would naturally expect that the growth rates of ADS-B might come down a bit as the rush of people that are trying to get into the installed tapers off a bit.

我想說的是，正如我之前在航空業提到的那樣，到今年下半年，我們自然會預計 ADS-B 的增長率可能會有所下降，因為試圖進入已安裝的人潮逐漸減少一點點。

That's what we're anticipating and that's why we're just holding back a little bit.

這就是我們所期待的，這就是為什麼我們只是有所保留。

Got you.

明白了

And then my follow-up is on Tacx.

然後我的後續行動是在 Tacx 上。

What's your go-to market strategy there?

你在那裡的市場策略是什麼？

Can you give some more details on margins, revenues?

你能提供更多關於利潤率和收入的細節嗎？

I think you mentioned maybe 6 points of growth for fitness, but has that view now changed that you closed the acquisition?

我想你提到健身可能有 6 個增長點，但現在你結束收購後這種觀點是否改變了？

There are really no changes in terms of go-to market.

在進入市場方面確實沒有變化。

They are the market leader particularly in the European region and so we expect to continue to capitalize on that strength.

他們是市場領導者，尤其是在歐洲地區，因此我們希望繼續利用這一優勢。

And we see opportunities for growth in the Americas and Asia where they're less represented.

我們在他們代表較少的美洲和亞洲看到了增長機會。

So we're working hard to implement those sales strategies right now.

所以我們現在正在努力實施這些銷售策略。

In terms of margins, it's fairly consistent with the overall headline margins of fitness, so we don't anticipate really any impact there.

就利潤率而言，它與健身的整體標題利潤率相當一致，因此我們預計不會有任何影響。

There will be allocation of the purchase price to fitness, so that will impact some of the operating margins.

購買價格將分配給健身，因此這將影響一些營業利潤率。

But on a preamortized basis, it's very positive to our fitness segment on a cash flow basis.

但在預先攤銷的基礎上，這對我們的健身部門的現金流非常有利。

Our next question comes from Nick Todorov with Longbow.

我們的下一個問題來自 Longbow 的 Nick Todorov。

First, apologize for any background noise.

首先，為任何背景噪音道歉。

Just on aviation, my sense is that results came a little bit better than expected.

就航空而言，我的感覺是結果比預期的要好一些。

Maybe can you talk from aftermarket OEM, what surprises you saw in the quarter?

也許您能從售後市場 OEM 談談，您在本季度看到了哪些驚喜？

And then secondly, some of your competitors have talked about the pricing environment, given the supply constraint (inaudible) . Maybe if you can comment on that (inaudible)?

其次，考慮到供應限制（聽不清），您的一些競爭對手談到了定價環境。也許你可以對此發表評論（聽不清）？

So Nick, sorry to say, but your call quality was kind of challenging, so I'm not sure that we've really tracked your question.

尼克，很抱歉，你的通話質量有點問題，所以我不確定我們是否真的跟踪了你的問題。

I don't know if you can maybe try to restate it or help us out a little bit there.

我不知道你是否可以嘗試重述它或幫助我們解決一些問題。

Sorry about that.

對於那個很抱歉。

Can you hear me?

你能聽到我嗎？

That's incrementally better.

這樣就更好了。

Sorry.

對不起。

Can you hear me better now?

你現在能聽得更清楚了嗎？

It's better now.

現在好多了。

Thank you.

謝謝。

Okay.

好的。

Sorry about that.

對於那個很抱歉。

So in aviation, the sense is that results came a little bit better than expected.

所以在航空領域，感覺結果比預期的要好一點。

Maybe can you talk about whether you saw some surprises either on the OEM or on the aftermarket side?

也許您能談談您是否在 OEM 或售後市場方面看到了一些驚喜？

And secondly, can you comment, if you see any changes in the pricing environment in the aftermarket side?

其次，如果您看到售後市場方面的定價環境有任何變化，您能否發表評論？

Some of your competitors have talked about some changes, given the supply constraints.

鑑於供應限制，您的一些競爭對手已經談到了一些變化。

I was wondering if you see anything different.

我想知道你是否看到任何不同之處。

Yes.

是的。

So in terms of aviation and our view there and what we saw, I would say that aftermarket was very strong and that reflects true demand and sell-through to customers that are out there.

因此，就航空業和我們在那裡的看法以及我們所看到的而言，我會說售後市場非常強勁，這反映了真正的需求和對那裡客戶的銷售。

In terms of OEM, there is some timing-related things that helped us in Q1.

在 OEM 方面，有一些與時間相關的事情在第一季度幫助了我們。

But in general, we still feel very positive about the OEM environment.

但總的來說，我們仍然對 OEM 環境感到非常樂觀。

In terms of pricing and aviation, I would say that pricing has been firm.

在定價和航空方面，我會說定價一直很穩定。

We did go through some pricing increases at the first part of the year, which didn't seem to have any impact in terms of our demand that we're seeing in the segment.

今年上半年我們確實經歷了一些價格上漲，這似乎對我們在該細分市場中看到的需求沒有任何影響。

Okay.

好的。

So do you -- you said you went through some price increases in the first quarter this year or that was last year, I'm sorry?

那麼你 - 你說你在今年第一季度或去年第一季度經歷了一些價格上漲，對不起？

It was basically in January.

基本上是在一月份。

Okay.

好的。

Okay.

好的。

Got it.

知道了。

And Doug, can you comment on whether some of the changes in OpEx allocation changes your outlook?

Doug，您能否評論一下 OpEx 分配的某些變化是否改變了您的前景？

I believe last quarter you were talking about expecting about 100 basis points increase OpEx as a percent of sales.

我相信上個季度你談到預計運營支出佔銷售額的百分比增加 100 個基點。

So has that outlook changed?

那麼這種看法改變了嗎？

No.

不。

We are consistent with that outlook for the full year.

我們與全年的展望一致。

So yes, about 100 basis points increase for total operating expenses.

所以是的，總運營費用增加了大約 100 個基點。

We expect advertising as a percentage of sales to be relatively consistent year-over-year and probably about a 50 basis point increase in R&D on a full year basis, then a 50 basis point increase in SG&A on a full year basis.

我們預計廣告佔銷售額的百分比與去年同期相比相對穩定，全年 R&D 可能增長 50 個基點，然後 SG&A 全年增長 50 個基點。

I should also mention the Tacx acquisition.

我還應該提到對 Tacx 的收購。

About 25% of that year-over-year increase in operating expenses will be attributed to the Tacx acquisition, which we closed on here in the second quarter.

營業費用同比增長的約 25% 將歸因於我們在第二季度在這裡完成的 Tacx 收購。

Okay.

好的。

And last for me.

最後對我來說。

Automotive gross margin came a little bit stronger than the trend over the last couple of years.

汽車毛利率略高於過去幾年的趨勢。

Is there anything worth calling out?

有什麼值得一提的嗎？

Was it anything maybe tied to the specialty products that offset some of the PND declines or is there something else?

它是否與抵消部分 PND 下降的特殊產品有關，或者是否還有其他原因？

Yes.

是的。

One thing we did see in PND is that we had a new Drive line a PND that was launched here in first quarter.

我們在 PND 中確實看到的一件事是，我們在第一季度在這裡推出了一條新的 Drive 系列 PND。

So with that new launch, we did see some improvement relating to our gross margin.

因此，隨著新產品的推出，我們確實看到了與毛利率相關的一些改善。

Our next question comes from Ivan Feinseth with Tigress Financial Partners.

我們的下一個問題來自 Tigress Financial Partners 的 Ivan Feinseth。

Congratulations on another great quarter and being named one of the top 5 places to work.

祝賀又一個偉大的季度，並被評為前 5 名工作場所之一。

I have a few product questions and platform questions.

我有幾個產品問題和平台問題。

First, at this year's Connect IQ Developer conference, year-over-year, how -- is attendance growing?

首先，在今年的 Connect IQ 開發者大會上，出席人數同比增長如何？

And what have been some of the topics covered?

涵蓋了哪些主題？

And I really do like also the new Connect IQ app that organizes the applications.

我也非常喜歡用於組織應用程序的新 Connect IQ 應用程序。

Yes.

是的。

So our Connect IQ Summit was actually very, very good.

所以我們的 Connect IQ 峰會實際上非常非常好。

We had strong attendance, same as the previous years.

與往年一樣，我們的出席率很高。

So we're not seeing any decrease in the level of interest.

所以我們沒有看到興趣水平有任何下降。

We announced new features for Connect IQ that allows app developers to further leverage the platform, so they can have better access, thorough access to the wireless capabilities of devices.

我們宣布了 Connect IQ 的新功能，允許應用程序開發人員進一步利用該平台，以便他們可以更好地訪問、徹底訪問設備的無線功能。

There's great new animation tools that they can use to create more lively apps.

他們可以使用很棒的新動畫工具來創建更生動的應用程序。

So a lot of enthusiasm around the things that we've been doing.

對我們一直在做的事情充滿熱情。

Now is there any plans to create a -- like a marketplace, so that those who want to offer apps that they could charge would be able to do that?

現在是否有任何計劃創建一個 - 就像一個市場，以便那些想要提供他們可以收費的應用程序的人能夠做到這一點？

Because I know there are -- most of the apps are free.

因為我知道 - 大多數應用程序都是免費的。

Some of the developers say if you'd like to send the money, let's say, through PayPal, you can do it, but is there eventually going to be like a formalized e-commerce process on the platform?

一些開發人員說，如果你想匯款，比方說，通過 PayPal，你可以這樣做，但最終會在平台上形成一個正式的電子商務流程嗎？

Yes.

是的。

So we're evolving the platform to be able to support monetization.

因此，我們正在改進平台以支持貨幣化。

And as you say right now, it's not as strong of a link in terms of helping our app developers, but we're working on a road map that gets us there.

正如你現在所說的，它在幫助我們的應用程序開發人員方面並沒有那麼強大的聯繫，但我們正在製定一個讓我們到達那裡的路線圖。

And I think in the coming year, we should have improvements.

我認為在來年，我們應該有所改進。

Very good.

非常好。

I love the new product cadence and the number of new cycling computers.

我喜歡新產品的節奏和新自行車電腦的數量。

My one question is on -- like the zumo line, for example, it connects to the tire monitors.

我的一個問題是——例如 zumo 系列，它連接到輪胎監視器。

Are you going to be offering the ability to have tire pressure monitors for -- on a bicycle that connects to the cycling computers?

您是否打算在連接到自行車電腦的自行車上提供輪胎壓力監測器的功能？

I think that's a pretty cool feature.

我認為這是一個很酷的功能。

Yes.

是的。

It's definitely a technology we can leverage in cycling.

這絕對是一項我們可以在騎行中利用的技術。

And so I wouldn't rule it in or out at this point because we're evaluating our road maps, but it is something that we can leverage across multiple product categories.

所以我不會在這一點上排除它，因為我們正在評估我們的路線圖，但它是我們可以在多個產品類別中利用的東西。

And as far as product line, are you looking to launch a refresh to zumo?

至於產品線，你們是否打算對 zumo 進行更新？

Or -- what is your thoughts on the zumo line?

或者——您對 zumo 系列有何看法？

Well, the zumo line is an integral part of our overall PND lineup.

嗯，zumo 系列是我們整個 PND 產品線不可或缺的一部分。

And so we have a strong road map there as we do in the other areas as well, truck, RV.

因此，我們在那裡有一個強有力的路線圖，就像我們在其他領域所做的那樣，卡車、房車。

And then like the Garmin Mechanic is pretty cool.

然後像 Garmin Mechanic 一樣非常酷。

And have you thought about some kind of other onboard diagnostic port connection to any of your other GPS devices that could incorporate that data into the screen of the GPS?

您是否考慮過與您的任何其他 GPS 設備的某種其他板載診斷端口連接，可以將該數據整合到 GPS 的屏幕中？

We've invested some effort in understanding OBD connection to the vehicle, and of course, on our OEM side we have a lot of access to the vehicle in terms of the CAN buses and things.

我們已經投入了一些努力來了解 OBD 與車輛的連接，當然，在我們的 OEM 方面，我們可以在 CAN 總線和其他方面訪問車輛。

But in terms of aftermarket diagnostics, it's somewhat of a crowded market.

但就售後市場診斷而言，這是一個有點擁擠的市場。

And so we have struggled to find a place where we can really carve out our own unique niche there.

因此，我們一直在努力尋找一個地方，在那裡我們可以真正開闢出我們自己獨特的利基市場。

So it's not something that we've been actively pursuing recently.

所以這不是我們最近一直在積極追求的事情。

Okay.

好的。

Understood.

明白了。

And then I love the new MARQ watches.

然後我喜歡新款 MARQ 手錶。

They are beautiful.

他們好美。

Can you give some thoughts on unit volume?

你能給出一些關於單位體積的想法嗎？

Well, we don't break out by volume, but I would say as we mentioned in the remarks that the reception has been good.

好吧，我們沒有按數量突破，但我會說正如我們在評論中提到的那樣，反響很好。

And we're pleased with that.

我們對此感到滿意。

And so we're just at the front end now of delivering those products to market.

因此，我們現在正處於將這些產品推向市場的前端。

And we'll have an updated view in the future.

我們將來會有更新的視圖。

And also on Tacx, can you give us some thoughts as far as product branding?

還有關於 Tacx，您能否就產品品牌給我們一些想法？

Are you going to maintain the Tacx name or somehow incorporate the Garmin name with it?

您是要保留 Tacx 名稱還是以某種方式將 Garmin 名稱與其合併？

Also, do you see any focus on specific products and expanding the product availability into the U.S. and the marketing strategy behind it?

此外，您是否看到任何專注於特定產品並將產品可用性擴展到美國及其背後的營銷策略？

Yes.

是的。

So the Tacx name is very strong, so we want to maintain that.

所以 Tacx 名稱非常強大，所以我們想保留它。

And so the branding will be -- definitely, Tacx is the headline on those products and -- for the website and things we're calling it a Garmin company.

因此品牌將是——當然，Tacx 是這些產品的標題——對於網站和我們稱之為 Garmin 公司的東西。

In terms of our specific product focus, our emphasis is at Tacx.

就我們的具體產品重點而言，我們的重點是 Tacx。

Tacx's emphasis before we acquired them was that smart trainers and advanced trainers is their specialty.

在我們收購他們之前，Tacx 的重點是聰明的培訓師和高級培訓師是他們的專長。

And so we're going to continue investing in that.

因此，我們將繼續對此進行投資。

And then in terms of bringing the product to other markets, we're working very hard to bring it into U.S. distribution now in a more complete way, and so that's ongoing and should be more evident as we move into the back half of the year.

然後在將產品推向其他市場方面，我們正在非常努力地以更完整的方式將其引入美國分銷，因此這正在進行中，並且隨著我們進入今年下半年應該會更加明顯.

Our next question comes from Erik Woodring with Morgan Stanley.

我們的下一個問題來自摩根士丹利的 Erik Woodring。

I just wanted to get at -- first quarter revenue growth of 8% was strong.

我只是想知道——第一季度 8% 的收入增長非常強勁。

But in the past, you've talked about how the ramping of product launches and new product launches will essentially help accelerate that growth in the back half of the year versus the first half.

但在過去，你談到了產品發布和新產品發布的增加將如何在本質上幫助加速今年下半年與上半年的增長。

And so with guidance unchanged, I just kind of wanted to reconcile those data points given the outperformance in the first quarter.

因此，在指導不變的情況下，鑑於第一季度的出色表現，我只是想調和這些數據點。

Yes.

是的。

So we mentioned in the last call that our product releases were back-half loaded.

所以我們在上次電話會議中提到我們的產品發布是後半載的。

And I think that's certainly playing out as we're just now getting our new fitness products to market and we'll have more releases as we go through the year.

而且我認為這肯定會發揮作用，因為我們剛剛將新的健身產品推向市場，並且我們將在今年推出更多產品。

So we'll have to wait and see.

所以我們必須拭目以待。

We've mentioned before that this quarter is literally the smallest contribution to our overall yearly revenues.

我們之前提到過，這個季度實際上是對我們年度總收入的最小貢獻。

So we don't want to get too excited or disappointed on first quarter because there's a lot that lies ahead of us in terms of the overall sales environment and the competitive environment.

因此，我們不想在第一季度過於興奮或失望，因為在整體銷售環境和競爭環境方面，我們還有很多事情要做。

Okay.

好的。

And then just as my follow up.

然後就像我的跟進一樣。

Auto results.

自動結果。

Revenue down 10% was essentially the best performance you've had for that segment since the first quarter of 2016.

收入下降 10% 基本上是該細分市場自 2016 年第一季度以來的最佳表現。

So just curious, is that just the new Drive line PND that was launched?

所以很好奇，這只是推出的新 Drive line PND 嗎？

Or was there something else that contributed?

還是有其他的貢獻？

Any puts and takes -- understanding any puts and takes would be helpful there.

Any puts and takes - 了解任何 puts 和 takes 都會有幫助。

Drive certainly helped.

開車當然有幫助。

That was a sell-in event, although we've heard good remarks from our retailers on the sell-through of that product.

那是一次銷售活動，儘管我們從我們的零售商那裡聽到了對該產品銷售情況的好評。

So that's one dynamic, but we also saw strong demand for our specialty PNDs, particularly in the truck, RV and motorcycle areas.

這是一種動態，但我們也看到了對我們專業 PND 的強勁需求，尤其是在卡車、房車和摩托車領域。

And that helped a lot.

這很有幫助。

And so that represents really true demand in the market.

因此，這代表了市場上真正的需求。

So we were pleased with the result.

所以我們對結果很滿意。

And we'll have to wait and see how things go throughout the remainder of the year.

我們將不得不拭目以待，看看今年餘下時間的情況如何。

And just curious, is that a trend you think that could continue?

只是好奇，你認為這種趨勢會持續下去嗎？

Or is it -- would you call that -- or think of that more as a onetime benefit to the quarter?

或者它是——你會稱之為——還是將其更多地視為該季度的一次性收益？

Well, hard to say.

嗯，很難說。

Again, we're waiting to see more data as we experience the sell-through of the new products especially and as the driving season comes upon us here.

同樣，我們正在等待看到更多數據，因為我們特別經歷了新產品的銷售，並且隨著駕駛季節的到來。

So we'll have to wait and see.

所以我們必須拭目以待。

Thank you.

謝謝。

And I'm showing no further questions at this time.

我現在沒有進一步提問。

I'd like to turn the call back over to Teri Seck for closing remarks.

我想將電話轉回給 Teri Seck 以作結束語。

Thanks, everyone.

感謝大家。

Doug and I are available for callbacks throughout the day.

道格和我全天都可以回電。

Have a good one.

祝你有個好的一天。

Bye.

再見。

Ladies and gentlemen, this concludes today's conference.

女士們，先生們，今天的會議到此結束。

Thanks for your participation and have a wonderful day.

感謝您的參與，祝您有美好的一天。