台灣國際航電 (GRMN) 2019 Q3 法說會逐字稿

Ladies and gentlemen, thank you for standing by, and welcome to the Garmin Ltd.

女士們先生們，感謝你們的支持，歡迎來到 Garmin Ltd.

Third Quarter 2019 Earnings Conference Call.

2019 年第三季度收益電話會議。

(Operator Instructions) Please be advised that today's conference is being recorded.

（操作員說明）請注意，今天的會議正在錄製中。

(Operator Instructions)

（操作員說明）

I would now like to hand the conference over to your speaker today, Teresa (sic) [Teri] Seck, Head of Investor Relations.

我現在想把今天的會議交給您的發言人，投資者關係主管 Teresa (sic) [Teri] Seck。

Please go ahead.

請繼續。

Good morning.

早上好。

We would like to welcome you to Garmin Ltd.'s Third Quarter 2019 Earnings Call.

歡迎您參加 Garmin Ltd. 2019 年第三季度財報電話會議。

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

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。

This earnings call includes projections and other forward-looking statements regarding Garmin Ltd.

本次財報電話會議包括有關 Garmin Ltd. 的預測和其他前瞻性陳述。

and its business.

及其業務。

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

任何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 Ltd.

代表 Garmin Ltd. 出席

this morning are Cliff Pemble, President and Chief Executive Officer; and Doug Boessen, Chief Financial Officer and Treasurer.

今天上午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。

Thanks, Teri, and good morning, everyone.

謝謝，泰瑞，大家早上好。

Earlier today, Garmin reported another strong quarter of revenue growth, up 15% to $934 million.

今天早些時候，Garmin 公佈了又一個強勁的季度收入增長，增長 15% 至 9.34 億美元。

Aviation, fitness, outdoor and marine collectively increased 24% and contributed 85% of total revenues.

航空、健身、戶外和海洋合計增長 24%，佔總收入的 85%。

Gross margin improved to 60.7%.

毛利率提高至 60.7%。

Revenue growth and expanding margins resulted in significant operating leverage in the business.

收入增長和利潤率擴大導致該業務具有顯著的運營槓桿。

Operating income increased 33% year-over-year to $261 million and operating margin expanded to 28%.

營業收入同比增長 33% 至 2.61 億美元，營業利潤率擴大至 28%。

This resulted in GAAP EPS of $1.19 and pro forma EPS of $1.27 in the quarter.

這導致該季度的 GAAP 每股收益為 1.19 美元，預計每股收益為 1.27 美元。

We are pleased with our performance in the first 3 quarters of 2019, and these strong results give us confidence to raise our full year guidance, which I'll explain in a moment.

我們對 2019 年前 3 季度的表現感到滿意，這些強勁的業績讓我們有信心提高全年業績指引，稍後我將對此進行解釋。

Doug will discuss our financial results in greater detail in a few minutes.

道格將在幾分鐘內更詳細地討論我們的財務結果。

But first, I'd like to provide a few brief remarks on the performance of our business segments.

但首先，我想就我們業務部門的表現提供一些簡短的評論。

Starting with the Aviation segment.

從航空部門開始。

Revenue increased 28% driven by growth in both OEM and aftermarket systems.

在 OEM 和售後市場系統增長的推動下，收入增長了 28%。

Gross and operating margins remained strong at 74% and 35%, respectively, resulting in operating income growth of 30% over the prior year.

毛利率和營業利潤率分別保持在 74% 和 35% 的強勁水平，導致營業收入比上一年增長 30%。

Growth in OEM systems was driven primarily by the recent certification of the Citation Longitude, featuring our G5000 integrated flight deck.

OEM 系統的增長主要是由最近對 Citation Longitude 的認證推動的，該認證採用我們的 G5000 集成駕駛艙。

However, the strength was broad-based as other aircraft platforms also contributed to the growth.

然而，由於其他飛機平台也為增長做出了貢獻，因此實力廣泛。

Growth in aftermarket systems was driven by strong ADS-B sales and the recently certified G5000 integrated flight deck for the Citation XL and XLS.

強勁的 ADS-B 銷售和最近為 Citation XL 和 XLS 認證的 G5000 集成駕駛艙推動了售後市場系統的增長。

During the quarter, the G1000H NXI was certified in the Bell 407GXi helicopter, representing the first IFR certification for this advanced helicopter flight deck.

本季度，G1000H NXI 獲得了貝爾 407GXi 直升機的認證，這是該先進直升機駕駛艙的首次 IFR 認證。

I'd like to highlight this morning's Autoland announcement.

我想強調今天早上的 Autoland 公告。

This new safety technology is designed to return an aircraft and its passengers safely to the ground in the event a pilot is unable to do so.

這種新的安全技術旨在在飛行員無法做到的情況下將飛機及其乘客安全送回地面。

We believe Autoland is disruptive new technology that will change the way people think about safety in general aviation aircraft.

我們相信 Autoland 是顛覆性的新技術，將改變人們對通用航空飛機安全性的看法。

Autoland will soon be available as part of the G3000 integrated flight deck on the Cirrus Vision Jet and the Piper M600 pending final FAA certification.

Autoland 很快將作為 Cirrus Vision Jet 和 Piper M600 的 G3000 集成駕駛艙的一部分提供，等待最終的 FAA 認證。

Turning next to the Fitness segment.

轉到健身部分旁邊。

Revenue increased 28%, primarily driven by growth in wearables and contributions from Tacx.

收入增長 28%，主要受可穿戴設備增長和 Tacx 貢獻的推動。

Gross and operating margins were 52% and 20%, respectively, resulting in operating income growth of 33% over the prior year.

毛利率和營業利潤率分別為 52% 和 20%，營業收入較上年增長 33%。

At [EPA], which is Europe's leading consumer electronics trade show, we announced a sweeping update to our line of consumer wearable products including new versions of the vívoactive series in 2 sizes, the vivomove 3 hybrid smartwatch series and the all-new Venu smartwatch featuring a brilliant AMOLED color touchscreen display, comprehensive health and fitness features and long battery life.

在歐洲領先的消費電子貿易展 [EPA] 上，我們宣布全面更新我們的消費類可穿戴產品系列，包括 2 種尺寸的新版 vívoactive 系列、vivomove 3 混合智能手錶系列和全新的 Venu 智能手錶具有出色的 AMOLED 彩色觸摸屏顯示屏、全面的健康和健身功能以及較長的電池壽命。

We also announced the Tacx NEO 2T smart trainer featuring enhanced drive design and performance analytics to simulate an outdoor ride as realistically and quietly as possible.

我們還發布了 Tacx NEO 2T 智能教練機，它具有增強的驅動設計和性能分析功能，可以盡可能真實和安靜地模擬戶外騎行。

Turning next to the Outdoor segment.

轉到戶外部分旁邊。

Revenue increased 23% on a year-over-year basis with growth in multiple product categories led by adventure smartwatches.

收入同比增長 23%，其中以探險智能手錶為首的多個產品類別實現了增長。

Gross and operating margins improved year-over-year to 66% and 41%, respectively, resulting in strong operating income growth for the segment.

毛利率和營業利潤率分別同比提高至 66% 和 41%，導致該部門的營業收入強勁增長。

At the recent UTMB trail running event, we launched the fenix 6 adventure smartwatch series with larger displays and innovative performance features.

在最近的 UTMB 越野跑活動中，我們推出了具有更大顯示屏和創新性能功能的 fenix 6 冒險智能手錶系列。

We also introduced the fenix 6X Pro Solar, the first of its kind with our exclusive solar harvesting technology.

我們還推出了 fenix 6X Pro Solar，這是同類產品中第一款採用我們獨有的太陽能收集技術的產品。

We've often mentioned that inReach technology has been a growth driver for the outdoor segment and that was definitely the case in this most recent quarter.

我們經常提到 inReach 技術一直是戶外領域的增長動力，最近一個季度的情況確實如此。

I'm pleased to report that inReach recently passed a significant milestone, facilitating over 4,000 SOS incidents since its launch in 2011, demonstrating the crucial importance of satellite-based 2-way messaging wherever our customers need assistance.

我很高興地向大家報告，inReach 最近達到了一個重要的里程碑，自 2011 年推出以來促成了 4,000 多起 SOS 事件，證明了在我們的客戶需要幫助的任何地方，基於衛星的雙向消息傳遞的至關重要性。

We believe inReach has room to grow in the future as more people recognize its potential to change outcomes and save lives.

我們相信隨著越來越多的人認識到 inReach 改變結果和挽救生命的潛力，inReach 在未來還有發展空間。

Turning next to the Marine segment.

轉到海洋部分旁邊。

Revenue increased 9% as we saw solid sales across multiple product categories led by chartplotters.

收入增長了 9%，因為我們看到由海圖師引領的多個產品類別的穩健銷售。

Gross and operating margins improved year-over-year to 60% and 19%, respectively, resulting in strong operating income growth for the segment.

毛利率和營業利潤率分別同比提高至 60% 和 19%，導致該部門的營業收入強勁增長。

During the quarter, we were named Manufacturer of the Year by the National Marine Electronics Association for the fifth consecutive year, reflecting the strength of our innovative products and our leading market position.

在本季度，我們連續第五年被美國國家海洋電子協會評為年度最佳製造商，這反映了我們創新產品的實力和領先的市場地位。

We were also named the exclusive marine electronics provider by both Regulator Marine and Sea Hunt, solidifying our leadership in the premier center console boat market.

我們還被 Regulator Marine 和 Sea Hunt 指定為獨家船用電子產品供應商，鞏固了我們在頂級中央控制台船市場的領導地位。

Looking, finally, at the auto segment, revenue decreased 17% primarily driven by declines in our OEM business and the ongoing PND market contraction.

最後，在汽車領域，收入下降了 17%，這主要是由於我們的 OEM 業務下滑和持續的 PND 市場收縮。

Our global market share position in the PND category remains very strong.

我們在 PND 類別中的全球市場份額地位仍然非常穩固。

Gross and operating margins improved year-over-year to 48% and 15%, respectively, resulting in operating income growth of 39%.

毛利率和營業利潤率分別同比增長 48% 和 15%，營業收入增長 39%。

During the quarter, we began shipping the Overlander all-in-one navigation device, which is a new product category designed for the growing community of overland adventure enthusiasts.

本季度，我們開始發售 Overlander 一體式導航設備，這是一種新產品類別，專為不斷壯大的陸上探險愛好者群體而設計。

So in summary, we're very pleased with the results in the first 3 quarters of 2019.

因此，總而言之，我們對 2019 年前 3 季度的結果感到非常滿意。

Given this strong performance, we're raising our projected full year revenue to approximately $3.65 billion.

鑑於這一強勁表現，我們將預計全年收入提高至約 36.5 億美元。

We're maintaining our full year gross margin at approximately 59.5% and raising our full year operating margin to approximately 24.3%.

我們將全年毛利率維持在約 59.5%，並將全年營業利潤率提高至約 24.3%。

We're also updating our full year pro forma effective tax rate to approximately 16%, resulting in pro forma earnings per share of approximately $4.15.

我們還將全年備考有效稅率更新為約 16%，從而使備考每股收益約為 4.15 美元。

So looking quickly at guidance by segment, we've increased growth expectations for aviation to 20%, fitness to 16% and the outdoor segment to 11%.

因此，快速查看按細分市場的指導，我們將航空增長預期提高到 20%，健身增長到 16%，戶外增長到 11%。

Guidance for the auto and the marine segments are unchanged.

汽車和海事部門的指導方針保持不變。

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'll begin by reviewing our third quarter financial results, give you [some] comments on the balance sheet, cash flow statement and taxes.

首先，我將回顧我們的第三季度財務業績，就資產負債表、現金流量表和稅收給你一些評論。

We posted third quarter revenue of $934 million, representing 15% increase year-over-year.

我們公佈的第三季度收入為 9.34 億美元，同比增長 15%。

Gross margin was 60.7%, 130 basis point increase from the prior year.

毛利率為 60.7%，較上年增長 130 個基點。

Operating expense as a percentage of sales was 32.7%, a 240 basis point decrease from the prior year.

營業費用佔銷售額的百分比為 32.7%，比上年下降 240 個基點。

Operating income was $261 million, a 33% increase year-over-year.

營業收入為 2.61 億美元，同比增長 33%。

Operating margin was 28%, a 380 basis point increase from the prior year.

營業利潤率為 28%，比上年增長 380 個基點。

Our GAAP EPS was $1.19 and our pro forma EPS was $1.27, a 27% increase from the prior year.

我們的 GAAP 每股收益為 1.19 美元，預計每股收益為 1.27 美元，比上年增長 27%。

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

接下來，我們將按部門查看第三季度收入。

We achieved record third quarter revenue of $934 million.

我們實現了創紀錄的第三季度收入 9.34 億美元。

Consolidated revenue grew 15%, led by solid double-digit growth in our Aviation, Fitness and Outdoor segments.

綜合收入增長了 15%，這主要得益於我們的航空、健身和戶外業務實現了兩位數的穩健增長。

Also, the Marine segment had solid growth of 9% during the quarter.

此外，海洋部門在本季度實現了 9% 的穩健增長。

On a combined basis, Aviation, Fitness, Outdoor and Marine were up 24% compared to the prior year quarter.

綜合來看，航空、健身、戶外和海事與去年同期相比增長了 24%。

Looking next at third quarter revenue and operating income.

接下來看第三季度的收入和營業收入。

On a combined basis, Aviation, Fitness, Outdoor and Marine segments contributed 85% of total revenue in third quarter 2019 compared to 80% in the prior year quarter.

在合併的基礎上，航空、健身、戶外和海洋部門在 2019 年第三季度貢獻了總收入的 85%，而去年同期為 80%。

Aviation grew from 18% to 20%, Fitness grew from 24% to 26%, and Outdoor grew from 26% to 28%.

航空從 18% 增長到 20%，健身從 24% 增長到 26%，戶外從 26% 增長到 28%。

You can see from the charts that illustrate our product mix by segment.

您可以從按細分市場說明我們的產品組合的圖表中看到。

Combined basis, the Aviation, Fitness, Outdoor and Marine segments delivered 92% of operating income in the third quarter of 2019 and 2018.

綜合來看，航空、健身、戶外和海洋部門在 2019 年和 2018 年第三季度實現了 92% 的營業收入。

All 5 segments had strong year-over-year increases and operating income dollars improved operating margins.

所有 5 個部門都有強勁的同比增長，營業收入美元提高了營業利潤率。

Looking next at operating expenses.

接下來看運營費用。

Our third quarter operating expenses increased by $21 million or 7%.

我們第三季度的運營費用增加了 2100 萬美元或 7%。

As a percentage of sales, operating expenses were 32.7% in the third quarter of 2019, a 240 basis decrease from the comparable quarter last year.

2019 年第三季度營業費用佔銷售額的百分比為 32.7%，比去年同期下降 240 個基點。

Research and development increased $10 million year-over-year due to investments and engineering resources.

由於投資和工程資源，研發同比增加了 1000 萬美元。

Our advertising expense was up $2 million from the prior year quarter due to higher Outdoor and Fitness expenses, partially offset by lower expenses in the Auto segment.

由於戶外和健身費用增加，我們的廣告費用比去年同期增加了 200 萬美元，部分被汽車部門的費用減少所抵消。

SG&A was up $10 million from the prior year quarter but decreased as a percentage of sales.

SG&A 比去年同期增加 1000 萬美元，但佔銷售額的百分比有所下降。

Increase was primarily due to personnel-related expenses, incremental costs associated with recent acquisitions.

增加主要是由於與人事相關的費用，以及與近期收購相關的增量成本。

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

資產負債表和現金流量表的一些亮點。

We ended the quarter with cash and marketable securities of approximately $2.5 billion.

本季度結束時，我們擁有約 25 億美元的現金和有價證券。

Accounts receivable decreased sequentially due to seasonal trends and increased year-over-year to $558 million due to strong third quarter sales.

由於季節性趨勢，應收賬款環比下降，由於第三季度銷售強勁，同比增長至 5.58 億美元。

Inventory balance increased sequentially to $750 million to prepare for the seasonally strong fourth quarter.

庫存餘額環比增加至 7.5 億美元，為季節性強勁的第四季度做準備。

The year-over-year increase is due to timing of new products, acquisition of Tacx and efforts to increase days of supply to support our increasingly diversified product lines.

同比增長是由於新產品的推出、收購 Tacx 以及努力增加供應天數以支持我們日益多樣化的產品線。

During the third quarter of 2019, we generated free cash flow of $158 million.

2019 年第三季度，我們產生了 1.58 億美元的自由現金流。

During the third quarter of 2019, we report an effective tax rate of 11.6% compared to an effective tax rate of 8.5% the prior year quarter.

在 2019 年第三季度，我們報告的有效稅率為 11.6%，而去年同期的有效稅率為 8.5%。

Increase in effective tax rate is primarily due to lower income tax reserve releases in the third quarter of 2019.

有效稅率的增加主要是由於 2019 年第三季度所得稅準備金釋放減少。

Also, we've updated our guidance for the full year pro forma effective tax rate to approximately 16%.

此外，我們已將全年備考有效稅率的指引更新為約 16%。

This concludes our formal remarks.

我們的正式發言到此結束。

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

奧利維亞，你能打開問答熱線嗎？

(Operator Instructions) And our first question coming from the line of Charlie Anderson with Dougherty & Company.

（操作員說明）我們的第一個問題來自 Dougherty & Company 的 Charlie Anderson。

My congrats on the really strong quarter and outlook.

我對真正強勁的季度和前景表示祝賀。

Cliff, I want to start with Aviation.

克利夫，我想從航空開始。

You mentioned some of the strength in OEM.

你提到了 OEM 的一些優勢。

I wonder if maybe you can just sort of speak to the pipeline of opportunity there, sort of the order book.

我想知道你是否可以談談那裡的機會管道，比如訂單。

As we think about ADS-B, we'll cycle that at some point and the ability of OEM to potentially offset some of that cycling down.

當我們考慮 ADS-B 時，我們會在某個時候循環它，並且 OEM 有能力潛在地抵消部分循環下降。

And then I've got a follow up.

然後我有一個跟進。

Okay.

好的。

Charlie, yes, in terms of OEM, as reported last quarter in the GAMA results, General Aviation Manufacturers Association, there has been strength across the categories of business jets that we're on as well as strength in the piston aircraft, particularly addressing the training market.

查理，是的，就 OEM 而言，正如通用航空製造商協會 GAMA 上個季度的結果所報告的那樣，我們所使用的公務機類別以及活塞式飛機都有實力，特別是解決培訓市場。

So that's driving continued momentum into Q3 and beyond.

因此，這推動了第三季度及以後的持續增長勢頭。

We see those opportunities as ongoing because, particularly in the training market, the need for pilots is very acute and the demand for aircraft trainers is high.

我們認為這些機會是持續存在的，因為特別是在培訓市場，對飛行員的需求非常迫切，對飛機教練的需求也很高。

In terms of ADS-B and its impact, it's definitely a growth driver for us.

就 ADS-B 及其影響而言，它絕對是我們的增長動力。

But even absent that particular category, we saw strong growth in the business.

但即使沒有那個特定類別，我們也看到了業務的強勁增長。

We're gaining confidence that, going forward, the cockpit modernization efforts that we're seeing across the fleet and demand for new aircraft should lead to positive results for the segment.

我們越來越有信心，展望未來，我們在機隊中看到的駕駛艙現代化努力和對新飛機的需求應該會為該部門帶來積極成果。

Great.

偉大的。

And then for my follow up, I think wearables business is doing very well for you right now.

然後對於我的跟進，我認為可穿戴設備業務現在對你來說非常好。

I wonder if maybe you could speak to what you're seeing in terms of unit growth versus ASP increases as you've moved up market here and is there a trajectory of continued ASP increases in the future from your standpoint.

我想知道你是否可以談談你在單位增長與 ASP 增長方面看到的情況，因為你已經進入了這裡的市場，並且從你的角度來看，未來 ASP 是否有持續增長的軌跡。

Yes.

是的。

We're definitely seeing unit growth in the business.

我們肯定會看到業務的單位增長。

So the market is expanding, and we're taking share as people recognize the value of our solutions and the capability of our products.

因此，市場正在擴大，隨著人們認識到我們解決方案的價值和我們產品的能力，我們正在搶占市場份額。

We do see some ASP benefits as well as we introduce higher-end products like the fenix 6 line with unique features as well as MARQ, so there's a positive impact there as well.

我們確實看到了一些 ASP 的好處，並且我們推出了更高端的產品，例如具有獨特功能的 fenix 6 系列以及 MARQ，因此這也產生了積極的影響。

And our next question coming from the line of Robert Spingarn with Crédit Suisse.

我們的下一個問題來自 Robert Spingarn 與 Crédit Suisse 的合作。

Really just strong numbers across the board and particularly on the operating margin.

真的只是全面的強勁數字，尤其是在營業利潤率方面。

I wanted to ask you, Doug, you talked about the various categories in your Slide #16.

我想問你，道格，你在幻燈片 #16 中談到了各種類別。

And while these are maybe moving around on an absolute basis, they seem to be fairly low historically on a percentage of sales basis.

雖然這些可能在絕對基礎上移動，但從歷史上看，它們佔銷售額的百分比似乎相當低。

And I was wondering if you could talk to the trends there?

我想知道你是否可以談談那裡的趨勢？

R&D is a bit lower than it's been.

研發比以前低了一點。

It sounds like maybe we back end that a little bit and then the other 2 categories as well.

聽起來我們可能會稍微支持一下，然後再支持其他 2 個類別。

How sustainable is this level of overhead?

這種開銷水平的可持續性如何？

Yes.

是的。

Sure.

當然。

That's great.

那太棒了。

So I'll give you a little bit of perspective on our operating structure, and you said between our advertising, SG&A and R&D.

所以我會給你一些關於我們的運營結構的觀點，你在我們的廣告、SG&A 和研發之間說過。

So thinking about it on a full year basis as a percentage of sales, what we're thinking about as it relates to advertising, we anticipate advertising as a percentage of sales to be relatively flat year-over-year.

因此，在全年的基礎上考慮它佔銷售額的百分比，我們正在考慮與廣告相關的內容，我們預計廣告佔銷售額的百分比將與去年同期相對持平。

So with that, we will be spending more advertising dollars this Q4 than we did last Q4.

因此，與去年第四季度相比，我們在第四季度花費的廣告費用將更多。

And that's primarily a function of just having new product launches.

這主要是新產品發布的一個功能。

So we will be very targeted in our advertising depending upon what those product launches are.

因此，我們將根據這些產品發布的內容來非常有針對性地進行廣告宣傳。

As it relates to SG&A, thinking about SG&A full year percentage of sales, anticipate that to be relatively flat year-over-year also.

由於與 SG&A 相關，考慮 SG&A 全年銷售額的百分比，預計與去年同期相比也相對持平。

What we have in there is a piece of that is due to acquisitions.

我們在那裡擁有的一部分是由於收購。

The other piece of it is just general, merit, other type of -- inflational type of increases we have in SG&A.

它的另一部分只是一般的、優點的、其他類型的——我們在 SG&A 中的通貨膨脹類型的增加。

Thinking about R&D, as a full year's percentage of sales, we would -- or right now, we look at that probably about 50 basis points lower than this year than last year.

考慮研發，作為全年銷售額的百分比，我們會 - 或者現在，我們認為今年可能比去年低 50 個基點。

From a dollar standpoint, there will be an increase.

從美元的角度來看，將會有所增加。

The situation there is that we are capitalizing some of our R&D expenses.

那裡的情況是我們正在將我們的一些研發費用資本化。

There are certain Auto OEM contracts that include contractual guarantees for reimbursements of R&D expenses.

某些汽車 OEM 合同包括研發費用報銷的合同保證。

So in those cases, our R&D expenses are capitalized.

所以在這些情況下，我們的研發費用被資本化了。

They're put on the balance sheet until that cash is received from our OEM receipt.

他們被記在資產負債表上，直到從我們的 OEM 收據中收到現金。

And I should say the expense structure that -- depending upon what kind of different product launches we have, what kind of advertising, some of that will fluctuate quarter-over-quarter.

我應該說費用結構——取決於我們推出的不同產品類型、廣告類型，其中一些會隨季度波動。

But right now, we're getting some nice leverage due to our sales also.

但現在，由於我們的銷售，我們也獲得了一些不錯的影響力。

I was going to ask you, if you look at the non-Auto R&D, are you at a point here where that decreases over time as a percentage of sales?

我想問你，如果你看一下非汽車研發，你是否處於這樣一個點，即它佔銷售額的百分比隨著時間的推移而下降？

Like you just said on scale, you're at some kind of a critical mass where it doesn't have to track at this point with the growth in sales.

就像你剛才所說的規模一樣，你處於某種臨界質量，此時它不必隨著銷售額的增長而跟踪。

I really think it's a function of that top line sales we have.

我真的認為這是我們擁有的頂級銷售的一個功能。

So here's what I would say.

所以這就是我要說的。

We'll continue to invest in R&D as we continue to have new products.

隨著我們不斷推出新產品，我們將繼續投資於研發。

And over a period of time, some of those we will invest before the products come in, in that situation, but we'll continue to invest appropriately to support our diversified line of products over a period of time as we go through.

在一段時間內，在那種情況下，我們會在產品問世之前投資其中一些，但我們會在一段時間內繼續適當投資，以支持我們多元化的產品線。

Okay.

好的。

And then just quickly, Cliff, for you.

然後很快，克里夫，為你。

I wanted to ask about M&A.

我想問一下併購。

And I'm often focused on capital deployment.

而且我經常專注於資本部署。

There's a couple things out there.

那裡有幾件事。

I just wondered if you could comment on them.

我只是想知道你是否可以對他們發表評論。

The possibility, out in the last 24 hours, that Google could be looking at Fitbit and how that might change the dynamics in the industry?

在過去的 24 小時內，谷歌是否有可能關注 Fitbit 以及這將如何改變行業動態？

And then also, at the same time, I think United Technologies has talked about or may be in some kind of a situation where it may have to sell GPS navigation business as part of its upcoming transaction with Raytheon.

同時，我認為聯合技術公司已經談到或可能處於某種情況下，它可能不得不出售 GPS 導航業務，作為即將與雷神公司交易的一部分。

Can you comment on your interest in those types of properties?

你能評論一下你對這些類型的財產的興趣嗎？

Yes.

是的。

So we've seen the speculation, obviously, around Fitbit and Google.

所以我們已經看到了圍繞 Fitbit 和谷歌的猜測。

It's really hard to say what we can think about that without any kind of formal announcement and whether or not it's even a real thing.

在沒有任何形式的正式聲明的情況下，很難說我們對此有何看法，也很難說它是否是真實的。

We believe that Fitbit's customer base is very different from ours and our product focus is also different.

我們認為 Fitbit 的客戶群與我們有很大不同，我們的產品側重點也不同。

So it's not something that we believe impacts us, and we're not worried about it.

所以我們認為這不會影響我們，我們也不擔心。

In terms of other opportunities, we look at every opportunity, basically, in terms of what it can bring to Garmin both in terms of technology or product lines.

在其他機會方面，我們基本上看每一個機會，無論是在技術上還是在產品線方面，它都能為 Garmin 帶來什麼。

So we would evaluate any of those opportunities based on that and what we can achieve with it going forward.

因此，我們將根據此評估任何這些機會，以及我們未來可以取得的成就。

Would military be of interest since it really hasn't been a big historical focus for you?

軍事對你來說真的不是一個重要的歷史焦點，你會感興趣嗎？

I think, generally, the military and defense is an area of interest and potential growth for us.

我認為，總的來說，軍事和國防是我們感興趣和潛在增長的領域。

We've been focused on adapting our off-the-shelf products into those opportunities rather than doing full custom bid development kind of work.

我們一直專注於使我們的現成產品適應這些機會，而不是進行完全定制的投標開發工作。

So those are the opportunities we're mostly focused on.

所以這些是我們主要關注的機會。

Our next question coming from the line of Ben Bollin with Cleveland Research.

我們的下一個問題來自 Ben Bollin 與 Cleveland Research 的合作。

Can we start -- within Fitness and Outdoor, could you walk us through a little bit of where you think you are in the rollout of new products?

我們可以開始嗎 - 在健身和戶外領域，您能否向我們介紹一下您認為您在推出新產品時所處的位置？

It still looks like there's some expanded lead times.

看起來仍然有一些延長的交貨時間。

Where do you think you are on channel inventory, supply, overall tightness as far as raw materials?

就原材料而言，您認為渠道庫存、供應、整體緊張情況如何？

And then I have a follow up.

然後我有一個跟進。

Yes.

是的。

So in terms of product introductions, we're mostly set for the remainder of the year.

因此，就產品介紹而言，我們主要為今年剩餘時間做好準備。

So we have a very strong lineup going into Q4.

所以我們有一個非常強大的陣容進入第四季度。

With any new product announcement, ramping up is always a challenge for any company.

隨著任何新產品的發布，提升對任何公司來說始終是一個挑戰。

So we're in the process of doing that, and that's part of the inventory situation with us as well as we build inventory to build these products and to deliver them during the fourth quarter.

所以我們正在這樣做，這是我們庫存情況的一部分，我們也在建立庫存以製造這些產品並在第四季度交付它們。

A second one.

第二個。

Looking at inventory, you continue to expand the SKU count.

查看庫存，您繼續擴大 SKU 數量。

Is there a way to think about what is normal for inventory into the future?

有沒有辦法考慮未來庫存的正常情況？

And then within the new product launches themselves, are there any particular pieces, parts that you have not been able to source or you're having any yield issues, anything of significance that would extend availability into next year?

然後在新產品發布本身中，是否有任何特定的零件、您無法採購的零件或您有任何產量問題，是否有任何重要的東西可以將可用性延長到明年？

Yes.

是的。

So definitely, we are taking a different approach to some of these markets by offering unique kinds of products, especially appealing to people who want to differentiate themselves rather than wearing the same kind of product.

因此，毫無疑問，我們通過提供獨特的產品對其中一些市場採取了不同的方法，特別吸引那些想要與眾不同而不是穿著同一種產品的人。

So that does lead to higher SKUs.

所以這確實會導致更高的 SKU。

It does lead to higher levels of inventory and that's something that we use as a tool in the business.

它確實會導致更高水平的庫存，這是我們在業務中用作工具的東西。

We've seen some normalization of these amounts because we're focused on safety stock in the inventory and reducing risk, making sure that we can deliver the products that we want to deliver to the market, especially during the selling season.

我們已經看到這些數量的一些正常化，因為我們專注於庫存中的安全庫存和降低風險，確保我們能夠向市場交付我們想要交付的產品，尤其是在銷售季節。

So in terms of yields and things like that, I mean -- again, like I mentioned, as new products ramp, there are initial challenges, but our factory is working very hard and the product is flowing to the market.

所以就產量和類似的事情而言，我的意思是——再次，就像我提到的，隨著新產品的增加，最初的挑戰是存在的，但我們的工廠正在非常努力地工作，產品正在流入市場。

And the last question I have is as it relates to Automotive, any update on the timing of the BMW China opportunity or the broader BMW Tier 1 status?

我的最後一個問題是與汽車相關的，關於寶馬中國機會的時間安排或更廣泛的寶馬一級地位的任何更新？

And when does the company begin to make some of the investments, either new facilities or greater headcount, as you support that bigger long-term opportunity as a Tier 1 vendor?

公司什麼時候開始進行一些投資，無論是新設施還是更多員工，因為您支持作為一級供應商的更大長期機會？

Yes.

是的。

So the China opportunity will be ramping up starting in later 2020 and into the 2021 model year.

因此，從 2020 年晚些時候開始到 2021 車型年，中國的機會將會增加。

So that's what we've been preparing for in the first phase of this opportunity with BMW.

這就是我們在與寶馬合作的這個機會的第一階段一直在做的準備。

In terms of making additional investments for our business that comes after that opportunity, we're in that process right now.

就在那個機會之後為我們的業務進行額外投資而言，我們現在正處於這個過程中。

We've been hiring additional people in the Automotive segment to support that business, and we're in the process of selecting new sites that will produce the product, especially in the European markets.

我們一直在汽車部門招聘更多人員來支持該業務，並且我們正在選擇生產該產品的新地點，尤其是在歐洲市場。

Our next question coming from the line of Paul Chung with JPMorgan.

我們的下一個問題來自摩根大通的 Paul Chung。

So first off, just on Aviation margins, you're seeing a nice step-up in operating margins kind of over the course of the last 3 years, some scale benefits on ADS-B in your core business, I assume.

所以首先，就航空利潤率而言，你會看到在過去 3 年中運營利潤率有了很好的提升，我認為你的核心業務在 ADS-B 上有一些規模效益。

So your gross margins have been pretty steady, but if you could kind of expand on what's behind that step-up there?

所以你的毛利率一直相當穩定，但如果你能擴大這種增長背後的原因呢？

And do you expect that mid-30% range to stand as we look beyond fiscal year '19?

當我們展望 19 財年以後時，您是否預計 30% 的中間範圍會保持不變？

And then can you also try to help us size the ADS-B opportunity in Europe and the runway there and your kind of expectations for overall demand next year after the deadline in the U.S.?

然後，您是否也可以嘗試幫助我們評估歐洲的 ADS-B 機會和那裡的跑道，以及您對明年美國截止日期後的整體需求的預期？

And I have a follow up.

我有跟進。

Yes.

是的。

So in terms of the operating margin in Aviation, we're experiencing some solid leverage in the business as the revenues have outpaced our need to grow expenses.

因此，就航空業務的營業利潤率而言，由於收入超過了我們增加支出的需求，我們在業務中遇到了一些穩固的槓桿作用。

I would say that we would still like to hire more people, engineering people, in Aviation in order to be able to support ongoing opportunities that are going on there, but we're managing and it is giving us some leverage in the business.

我想說的是，我們仍然想在航空領域僱傭更多的人，工程人員，以便能夠支持那裡正在發生的持續機會，但我們正在管理，這給了我們在業務中的一些影響力。

In terms of the expectations for the profit, I mean, at these kinds of investment levels and these kinds of revenues, obviously, we should be able to be pretty predictable in terms of our operating profit.

就利潤預期而言，我的意思是，在這些投資水平和這些收入方面，顯然，我們的營業利潤應該能夠非常可預測。

But as the business changes, we'll of course adjust and evaluate.

但是隨著業務的變化，我們當然會進行調整和評估。

For ADS-B, we're expecting that the opportunity will, of course, begin to flatten.

對於 ADS-B，我們預計機會當然會開始減少。

That's inevitable as we go into the fourth quarter and into next year, but we do see spillover business into next year, particularly the first half, as shop capacity still remains limited, so there's mostly linear output from shops right now and there's still more aircraft that need to be equipped.

隨著我們進入第四季度和明年，這是不可避免的，但我們確實看到明年的溢出業務，尤其是上半年，因為商店容量仍然有限，所以現在商店的大部分是線性輸出，而且還有更多的飛機需要配備的。

There are new opportunities, as you pointed out, so Europe is one of those and also Canada is evaluating their compliance as well.

正如您所指出的，存在新的機會，因此歐洲就是其中之一，加拿大也在評估其合規性。

Both of these, I would say, are interesting to us.

我想說，這兩者對我們來說都很有趣。

But obviously, the majority of the aircraft and the opportunities have been in the U.S.-based ADS-B, but they'll be nice enhancers for the coming years.

但很明顯，大部分飛機和機會都在美國的 ADS-B 中，但它們將是未來幾年很好的增強器。

Okay.

好的。

And then on a second question on free cash flow.

然後是關於自由現金流的第二個問題。

Looks like you had a bit larger-than-normal inventory drag this quarter and kind of less accounts receivable uplift than usual.

看起來你本季度的庫存拖累比正常情況要大一些，應收賬款的增加也比平時少。

You already mentioned it's a combination of new products and tax probably ahead of a seasonally strong 4Q.

你已經提到它是新產品和稅收的結合，可能在季節性強勁的第四季度之前。

But just wanted to get your thoughts on free cash flow to kind of end the year, should we expect a slightly more outsized 4Q than usual?

但只是想讓你對年底的自由現金流有一些想法，我們是否應該期待比平時稍微多一點的第四季度？

And do you have any estimate on where you think inventory balances will be in 4Q or is it too early days?

您是否對您認為第四季度的庫存餘額有任何估計，還是為時過早？

Sure.

當然。

As it relates to free cash flow for the full year, we would estimate our full year free cash flow to be around $575 million.

由於它涉及全年的自由現金流，我們估計全年的自由現金流約為 5.75 億美元。

That includes a CapEx estimate for the full year of about $125 million.

其中包括約 1.25 億美元的全年資本支出估計。

And regarding inventory, yes, inventory is up year-over-year Q3.

關於庫存，是的，第三季度庫存同比增長。

Would expect that to be up at year-end compared to year-end last year, also.

與去年年底相比，預計年底也會有所上升。

We expect to probably be up around 25% year-over-year due to some of the things that Cliff mentioned, just making sure that we do have ample days of supply to support the diversified product lines we do have.

由於 Cliff 提到的一些事情，我們預計可能會同比增長 25% 左右，只是確保我們有足夠的供應天數來支持我們現有的多元化產品線。

So in that $525 million (sic) [$575 million], is that more of a timing of kind of working cap and you expect maybe slightly more normalization in the first half of '20?

因此，在這 5.25 億美元（原文如此）[5.75 億美元]中，這是否更像是某種工作上限的時間，你預計在 20 世紀上半年可能會稍微正常化？

Or how should we think about that?

或者我們應該如何考慮？

Yes.

是的。

So -- sorry, it's $575 million.

所以 - 抱歉，這是 5.75 億美元。

So it's $575 million we anticipate for the full year.

因此，我們預計全年收入為 5.75 億美元。

So with that, as it relates to working capital, those are -- as it relation to 2020, we'll kind of look at that when we get into the planning cycle for that.

因此，與營運資金相關的是——與 2020 年相關的是，當我們進入規劃週期時，我們將對此進行研究。

But as the inventory that we mentioned, we do anticipate there to be some level of inventory that's going to be higher on a year-over-year basis just due to having more inventory to support our ongoing business.

但正如我們提到的庫存一樣，我們確實預計會有一定程度的庫存會同比增加，因為有更多的庫存來支持我們正在進行的業務。

Our next question coming from the line of Nick Todorov with Longbow Research.

我們的下一個問題來自 Longbow Research 的 Nick Todorov。

Congrats on great results.

恭喜取得好成績。

It was impressive.

令人印象深刻。

I have a couple of questions.

我有一些問題。

So the implied 4Q EPS guidance looks soft, which is not atypical for you guys.

因此，隱含的 4Q EPS 指導看起來很軟，這對你們來說並不典型。

So is that a function of your typical conservatism?

那麼這是你典型的保守主義的一個功能嗎？

Or is there a shift in operating expense dollars from 3Q to 4Q?

或者運營費用美元是否從第三季度轉移到第四季度？

I think that you talked about maybe increasing -- having relatively higher advertising expenses.

我認為你談到了可能增加——廣告費用相對較高。

Or is there something else that drives that, what looks on the front on the headline a relative soft 4Q EPS?

還是有其他因素推動了這一點，在標題的前面看起來是相對疲軟的 4Q 每股收益？

Yes.

是的。

As we mentioned, yes, the advertising we would expect those to be higher in the Q4 period of time, just due to new product launches and such that we do have there.

正如我們所提到的，是的，我們預計第四季度的廣告會更高，這只是由於新產品的發布，而我們確實有這樣的廣告。

Okay.

好的。

And if we can shift gears to Fitness, can you provide us some color on the gross margin there, which I was a little bit surprised given the revenue ramp up and the strength there?

如果我們可以轉向健身，您能否為我們提供一些關於毛利率的顏色，考慮到收入的增長和那裡的實力，我有點驚訝？

I understand tax is dilutive here, but is there anything else besides that affecting margins?

我知道這裡的稅收會稀釋，但除了影響利潤率之外還有其他什麼嗎？

And can you give us some color on the sell-through of the new products and specifically Forerunners?

你能給我們一些關於新產品，特別是先行者的銷售情況的顏色嗎？

I noticed that they were not highlighted in your remarks and presentations, and I know those were a core part of your portfolio and relatively new here in 2019.

我注意到他們沒有在您的評論和演示中突出顯示，而且我知道這些是您投資組合的核心部分，並且在 2019 年相對較新。

And -- yes, that's the question there on Fitness.

而且 - 是的，這就是 Fitness 上的問題。

Yes.

是的。

So we're preparing to be very promotional in Fitness in Q4, particularly in the advanced wellness products that are more of the consumer variety that are sold through the mass market outlet, so we're prepared for that.

因此，我們準備在第四季度大力宣傳 Fitness，特別是在通過大眾市場銷售的更多消費品的高級健康產品中，因此我們為此做好了準備。

And in terms of specifics on product lines, definitely our new products have done very well.

就產品線的細節而言，我們的新產品肯定做得很好。

There's a lot of interest and excitement around those.

圍繞這些有很多興趣和興奮。

The Forerunners have been doing very well and the sell-through is meeting our expectations, so we have no concerns there.

Forerunners 一直做得很好，銷售量達到了我們的預期，所以我們對此並不擔心。

Okay.

好的。

And lastly, Doug, just a follow up and clarification on the free cash flow.

最後，道格，只是對自由現金流的跟進和澄清。

So it seems like you brought down the CapEx plan from $150 million to $125 million.

因此，您似乎將資本支出計劃從 1.5 億美元下調至 1.25 億美元。

Yet, free cash flow, it seems, is also going down.

然而，自由現金流似乎也在下降。

Is the delta coming up just from higher working capital headwind?

增量是否只是來自更高的營運資本逆風？

Yes.

是的。

Correct.

正確的。

Our working capital is what that headwind is that's causing the overall free cash flow to come down, just increased inventory as well as you will see the receivables up year-over-year.

我們的營運資金是導致整體自由現金流下降的逆風，只是庫存增加，你會看到應收賬款同比增長。

That's just a function of having higher sales, but it's really a function of that working capital, primarily the inventory we talked about.

這只是更高銷售額的一個功能，但它實際上是營運資金的一個功能，主要是我們談到的庫存。

Our next question coming from the line of Ivan Feinseth with Tigress Financial Partners.

我們的下一個問題來自 Ivan Feinseth 與 Tigress Financial Partners 的合作。

A big congratulations on another great quarter.

祝賀又一個偉大的季度。

And congratulations on the launch of this new Autoland.

並祝賀這款新 Autoland 的推出。

Can you give us some idea of what the incremental cost is added to a plane?

你能給我們一些關於飛機增加的增量成本的想法嗎？

I think it's something that gets sold through the OEM provider.

我認為這是通過 OEM 供應商銷售的東西。

So in many cases, on these more advanced aircraft that we're targeting, they contain the systems that are needed to be able to do the function, particularly like autothrottle, although there are some additional control elements that are needed.

所以在很多情況下，在我們瞄準的這些更先進的飛機上，它們包含能夠執行該功能所需的系統，特別是自動油門，儘管還需要一些額外的控制元件。

But in general, that's something that will be sold through and priced on their end.

但總的來說，這些東西會被出售並最終定價。

And is this only available as a build into a brand-new plane?

這是否只能作為全新飛機的一部分提供？

Or can existing planes -- or will eventually existing planes be able to get this upgrade?

或者現有的飛機能否——或者最終現有的飛機能否進行這種升級？

That's the 2.

就是那個2。

There is a significant amount of complexity that goes along with the system.

系統伴隨著大量的複雜性。

And so building it into the aircraft at design and production of new aircraft is the best way to do that.

因此，在設計和生產新飛機時將其集成到飛機中是實現這一目標的最佳方式。

It's technically possible to bring it into other aircraft, but I think that's something we'd have to evaluate on a case-by-case basis.

將它帶入其他飛機在技術上是可行的，但我認為這是我們必鬚根據具體情況進行評估的事情。

And so it's available in 2 planes right now, right, the Piper and the Cirrus?

所以它現在可以在 2 架飛機上使用，對吧，Piper 和 Cirrus？

Did you work with both or either of those 2 companies in the development of this?

在開發過程中，您是否與這兩家公司或其中一家公司合作過？

Yes.

是的。

So the Cirrus SF50 and the Piper M600 are the first 2 platforms.

所以 Cirrus SF50 和 Piper M600 是前兩個平台。

We've been working with both manufacturers to implement and certify the system.

我們一直在與兩家製造商合作實施和認證該系統。

And they are in the final process of the aircraft-level certification for the function and should be a feature, then, that they would offer in their 2020 model years.

他們正處於該功能的飛機級認證的最後過程中，並且應該成為他們將在 2020 年車型中提供的一項功能。

And you're going to be -- this will be available -- you don't have any kind of exclusive deal with these 2, right?

而且您將 - 這將可用 - 您與這 2 個沒有任何獨家交易，對嗎？

You're going to be able to work with other manufacturers integrate this as well, right?

您將能夠與其他製造商合作，將其集成，對嗎？

Yes.

是的。

It's definitely something that can be offered as part of our G3000 systems and even beyond, we can do the G5000 as well.

它絕對可以作為我們 G3000 系統的一部分提供，甚至超越 G5000。

But it's something that's part of our core technology offerings for Garmin.

但這是我們為 Garmin 提供的核心技術產品的一部分。

Our next question coming from the line of Erik Woodring with Morgan Stanley.

我們的下一個問題來自摩根士丹利的 Erik Woodring。

Congrats on your quarter here.

恭喜你來到這裡。

So I just wanted to get back to the Aviation segment for a second.

所以我只想回到航空領域一秒鐘。

I know that in the past we've talked about kind of this 100,000 to 160,000 aircraft runway for ADS-B upgrades.

我知道過去我們曾討論過對這 100,000 到 160,000 架飛機的跑道進行 ADS-B 升級。

As -- through the beginning of October, we're kind of past that 100,000 threshold.

因為 - 到 10 月初，我們有點超過了 100,000 的門檻。

So at the low end this -- of the range, it would imply we're kind of through ADS-B at the high end.

因此，在這個範圍的低端，這意味著我們在高端有點通過 ADS-B。

It implies we could have up to 5 more quarters of kind of strong ADS-B growth.

這意味著我們可能還會有多達 5 個季度的強勁 ADS-B 增長。

And obviously, the implications for the model are huge because there's other retrofit work that can be done.

顯然，對模型的影響是巨大的，因為還有其他改造工作可以完成。

So I'm just curious, from your perspective, how we should be thinking about the ADS-B runway going forward as we kind of head into 2020 thinking, obviously, about the January deadline?

所以我很好奇，從你的角度來看，當我們進入 2020 年時，我們應該如何考慮 ADS-B 跑道的發展，顯然，關於 1 月的最後期限？

Yes.

是的。

I think it's probably somewhere in between the 2 scenarios you outlined.

我認為這可能介於您概述的兩種情況之間。

Definitely, as you pointed out, we've reached the low bar, if you will, on the number of aircraft that would equip.

當然，正如您所指出的，如果您願意的話，我們已經達到了裝備飛機數量的最低標準。

There's probably still an additional 25% of the fleet that remains in question in terms of what kind of equipment they would select or if they even equip or if aircraft are retired, which is also a scenario that's playing out for some kinds of aircraft.

可能還有另外 25% 的機隊在他們會選擇什麼樣的設備或者他們是否裝備或者飛機是否退役方面仍然存在疑問，這也是某些類型飛機正在上演的情況。

But we do think that the reality lies somewhere in between.

但我們確實認為現實介於兩者之間。

And we're planning on continued activity into the first half of 2020.

我們計劃在 2020 年上半年繼續開展活動。

Okay.

好的。

That's helpful.

這很有幫助。

And then if we just shift to kind of Outdoor and Fitness.

然後，如果我們只是轉向某種戶外和健身。

Obviously, huge product launches this quarter.

顯然，本季度將推出大量產品。

Just curious if you could give any color on kind of what percentage of growth was a result of the new product launches available for the last month of the quarter versus legacy products that were available for, call it, the entirety of the quarter?

只是好奇您是否可以給出任何顏色，說明本季度最後一個月可用的新產品發布與整個季度可用的舊產品相比，增長百分比是多少？

Yes.

是的。

Outdoor was probably the one that was most impacted by product announcements within the quarter with the fenix 6, so it did have a very positive impact on the Outdoor segment.

戶外可能是受 fenix 6 產品公告影響最大的一個季度，因此它確實對戶外領域產生了非常積極的影響。

In general, in Fitness, our new products that we introduced, the running products in Q2 as well as the new activity trackers in Q3, also had a positive impact on the quarter.

總的來說，在健身方面，我們推出的新產品，第二季度的跑步產品以及第三季度的新活動追踪器，也對本季度產生了積極影響。

And is there any way that you could detail or just break out kind of, one, if Tacx is performing in line with expectations?

如果 Tacx 的表現符合預期，您有什麼方法可以詳細說明或只是打破一種？

And then two, kind of what percent of Fitness Tacx -- if it's still kind of contributing half of the growth this year that you expected, more, less?

然後兩個，Fitness Tacx 的百分比是多少——如果它仍然貢獻了你預期的今年增長的一半，更多，更少？

Just any color there would be great.

任何顏色都會很棒。

Yes.

是的。

So Tacx is meeting our expectations, so they're right in line with what we expected.

所以 Tacx 滿足了我們的期望，因此它們與我們的預期完全一致。

The growth of the other categories was better than we expected.

其他類別的增長好於我們的預期。

So it meant that, for the quarter, the majority of our growth was actually organic within the segment but still Tacx met its expectations.

因此，這意味著，對於本季度，我們的大部分增長實際上是該細分市場內的有機增長，但 Tacx 仍然達到了預期。

And our next question coming from the line of Robert Spingarn with Crédit Suisse.

我們的下一個問題來自 Robert Spingarn 與 Crédit Suisse 的合作。

Just wanted to come back on ADS-B a little bit.

只是想稍微回到 ADS-B 上。

And I hear what you're saying, Cliff, about the eventual fade that we're all trying to time.

我聽到你在說什麼，克利夫，關於我們都在努力計時的最終消退。

But one thing that we learned from United Technologies earlier this earnings season was they are probably running at about 4 to 5x their maintenance level of sales on ADS-B.

但我們在本財報季早些時候從聯合技術公司那裡了解到的一件事是，他們在 ADS-B 上的銷售額可能是其維持銷售水平的 4 到 5 倍左右。

They are somewhere between $250 million and $300 million.

它們的價值在 2.5 億美元到 3 億美元之間。

And I think they said a normal number is around $60 million to $70 million.

我認為他們說的正常數字是 6000 萬到 7000 萬美元左右。

I just wanted to see if you're seeing the same kind of magnitude.

我只是想看看你是否看到了同樣的震級。

I understand that you're targeting, to some extent, smaller aircraft or much higher volumes of smaller aircraft.

我了解到，在某種程度上，您的目標是小型飛機或數量更多的小型飛機。

But is there any context you can give us regarding this?

但是你能給我們提供關於這方面的任何背景信息嗎？

Because obviously, we're all very focused on what the fade looks like in terms of quantifiable numbers.

因為很明顯，我們都非常關注褪色在可量化數字方面的表現。

Yes.

是的。

So definitely, there is a difference, as you point out, in the business models between the 2 companies and -- so I think some of the multiplier that you mentioned could be due to that.

所以，正如你所指出的，這兩家公司之間的商業模式肯定存在差異 - 所以我認為你提到的一些乘數可能是由於此。

I would say that, for us, again, if we subtracted the impact of the ADS-B, we still had very strong growth in our aftermarket business.

我要說的是，對於我們來說，如果我們減去 ADS-B 的影響，我們的售後市場業務仍然有非常強勁的增長。

And I attribute that to the fact that we've got great products and some of them don't even have anything to do with ADS-B, such as our Autopilot systems, for example, and also our aftermarket cockpits for things like the Excel and the XLS.

我將其歸因於我們擁有出色的產品，其中一些甚至與 ADS-B 沒有任何關係，例如我們的自動駕駛系統，以及我們的 Excel 等售後駕駛艙和 XLS。

So the dynamic is a little bit different from us.

所以動態與我們有點不同。

There definitely is an argument to be made that, as people are motivated to upgrade to ADS-B, they're also upgrading the other equipment.

肯定有一個論點是，當人們有動力升級到 ADS-B 時，他們也在升級其他設備。

And we've said that before, it's difficult to quantify how much of that is interrelated.

我們之前說過，很難量化其中有多少是相互關聯的。

And there is quite a bit of cockpit equipment that needs modernization.

並且有相當多的駕駛艙設備需要現代化。

Many cockpits are decades old, and the equipment now that is offered in the market is compelling and allows people to upgrade their aircraft into newer, safer, more reliable equipment.

許多駕駛艙已有數十年曆史，現在市場上提供的設備很有吸引力，可以讓人們將飛機升級為更新、更安全、更可靠的設備。

So we see that dynamic continuing even when ADS-B peaks and fades.

因此，我們看到即使在 ADS-B 達到峰值和衰減時，這種動態仍在繼續。

Okay.

好的。

And then just sticking with Aviation while I'm still here.

然後在我還在這裡的時候就堅持航空。

I wanted to get an idea how we should think about the OE side.

我想知道我們應該如何考慮 OE 方面。

You talked about it earlier in an earlier question.

你在之前的一個問題中談到過它。

You talked about the ramp, you've got the longitude here.

你談到了坡道，這裡有經度。

And I think you made some positive comments about the OE side.

而且我認為您對 OE 方面做出了一些積極的評論。

From where we sit, we see a very flattish overall OE market that is driven in some part, probably for Garmin, on new introductions.

從我們所處的位置來看，我們看到一個非常平淡的整體 OE 市場，這在某種程度上是由新推出的產品驅動的，可能是 Garmin。

But overall, unit volumes are fairly flat.

但總體而言，單位數量相當平穩。

And I would say there's not a lot of increase in demand.

我會說需求沒有太多增加。

But in the context of that, I wanted to get a sense of how small that business is relative for you to the overall Aviation business given how strong your aftermarket and retrofit components are.

但在這種情況下，鑑於您的售後市場和改裝組件有多強大，我想了解該業務相對於整個航空業務而言有多小。

In other words, should we worry too much about the OE side, if it is indeed flat?

換句話說，如果 OE 確實是平的，我們是否應該過於擔心 OE 方面？

Well, I feel like our OEM business is actually targeting the sweet spot of where Aviation is right now.

好吧，我覺得我們的 OEM 業務實際上瞄準了航空業目前所處的最佳位置。

The -- as I mentioned in other questions, the trainer market is something that we'll see continued demand for several years to come as the pilot shortage is reckoned with in the industry and as there's significant demand for trainer aircraft to train these pilots.

正如我在其他問題中提到的那樣，教練機市場是我們將在未來幾年看到持續需求的市場，因為業內已經意識到飛行員短缺，而且對訓練這些飛行員的教練機的需求很大。

And then the class of aircraft that we're on is kind of the midsized business jet on down.

然後我們乘坐的飛機類別是一種中型公務機。

And so again, that's where it's kind of a sweet spot right now, particularly in this economy, as these tend to be -- tend to tilt more towards owner flown or the fractional areas, which has been a very strong area for us.

因此，這又是目前的一個最佳點，特別是在這種經濟中，因為這些往往更傾向於所有者飛行或部分區域，這對我們來說是一個非常強大的區域。

So we see continued opportunity in the OE side.

因此，我們在 OE 方面看到了持續的機會。

You asked the question about how significant is it relative to the overall segment.

您問的問題是它相對於整個細分市場有多重要。

And as we've remarked in the past, the segment is roughly split evenly between retrofit and OEM.

正如我們過去所說，該細分市場在改造和 OEM 之間大致平分。

So OEM is definitely a strong influencer in our business, and we see opportunities going forward that will continue.

所以 OEM 絕對是我們業務的強大影響力，我們看到未來的機會將繼續存在。

Is there a reasonable way to split OEM into its varied components, whether it's piston versus jet, along those lines, or aircraft versus trainers?

是否有一種合理的方法將 OEM 分成不同的組件，無論是活塞還是噴氣式飛機，還是飛機還是教練機？

Yes.

是的。

I think if you look at the public information that's available for the industry through GAMA, they detail that out pretty well, but we have a strong market share across all of those platforms.

我認為，如果你通過 GAMA 查看行業可用的公共信息，他們會詳細說明這一點，但我們在所有這些平台上都擁有強大的市場份額。

So you would track those numbers?

所以你會追踪這些數字？

We do track those numbers, yes.

我們確實跟踪這些數字，是的。

And our next question coming from the line of Nick Todorov with Longbow Research.

我們的下一個問題來自 Longbow Research 的 Nick Todorov。

Just a few follow-ups.

只是一些後續行動。

On -- one on Autoland.

在 - 一個在 Autoland 上。

It sounds like it's a product that -- it has a little bit more heavy on the software side.

聽起來這是一種產品——它在軟件方面有點重。

Is that correct, A?

對嗎，A？

And if it's correct, how should we think about the margin contribution to the overall Aviation segment?

如果它是正確的，我們應該如何考慮對整個航空部門的利潤率貢獻？

I'm assuming that should be accretive, but are you willing to provide any color on that?

我假設這應該是增值的，但你願意為此提供任何顏色嗎？

I think in terms of margin percentage, we don't see any impact from that.

我認為就保證金百分比而言，我們看不到任何影響。

We see this as an opportunity to provide additional content onto the aircraft platform, which, in turn, leads to profit dollars.

我們認為這是在飛機平台上提供額外內容的機會，這反過來又會帶來利潤。

So that's our view.

這就是我們的觀點。

Okay.

好的。

And quickly on fenix.

並迅速在 fenix 上。

I know it's pretty early, Cliff, but can you give us some sense on how is sell-through relative to your expectations?

我知道現在還為時過早，克利夫，但你能告訴我們一些關於銷售率與你的預期相比如何嗎？

And specifically, are you willing to talk about mix within fenix?

具體來說，你願意談談 fenix 的混音嗎？

Our work kind of suggests that you're seeing some benefit from customers mixing up and buying higher-end fenix watches.

我們的工作有點表明您看到客戶混合購買高端 fenix 手錶的一些好處。

So if you can give us any color there, that would be helpful.

因此，如果您可以在那裡給我們任何顏色，那將很有幫助。

Yes.

是的。

We are pleased with the sell-through, and we're working very hard to deliver on the backlog that we have in that product.

我們對銷售情況感到滿意，並且我們正在非常努力地交付我們在該產品中的積壓訂單。

We are seeing people step-up to the higher end versions, particularly the larger fenix 6X, and the interest in the 6X Pro Solar is also very strong.

我們看到人們升級到更高端的版本，尤其是更大的 fenix 6X，並且對 6X Pro Solar 的興趣也非常強烈。

So there's a lot of positives in the fenix line that are driving our business.

因此，fenix 系列有很多積極因素推動著我們的業務發展。

And I'm not showing any further questions at this time.

我現在不會提出任何進一步的問題。

I would now like to turn the call back over to Teri Seck for closing remarks.

我現在想將電話轉回給 Teri Seck 以作結束語。

Thank you, everyone.

謝謝大家。

As usual, Doug and I will be available for callbacks throughout the day.

和往常一樣，Doug 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 call.

女士們，先生們，今天的電話會議到此結束。

Thank you for your participation.

感謝您的參與。

You may all disconnect.

你們都可以斷開連接。

Everyone, have a great day.

大家，祝你有美好的一天。