台灣國際航電 (GRMN) 2024 Q1 法說會逐字稿

Thank you for standing by, and welcome to the Garmin Limited First Quarter 2024 Earnings Call.

感謝您的耐心等待，歡迎參加 Garmin Limited 2024 年第一季財報電話會議。

(Operator Instructions) Finally, a reminder that this conference is being recorded. I would now like to turn the conference over to Teri Seck, Director of Investor Relations. Please go ahead.

（操作員說明）最後提醒一下，本次會議正在錄製中。我現在想將會議交給投資者關係總監 Teri Seck。請繼續。

Good morning. We would like to welcome you to Garmin Ltd.'s First Quarter 2024 Earnings Call. 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. An archive of the webcast and related transcripts will also be available on our website.

早安.歡迎您參加 Garmin Ltd. 的 2024 年第一季財報電話會議。請注意，收益新聞稿和相關投影片可在網路上的 Garmin 投資者關係網站 www.garmin.com/stock 上取得。我們的網站上也將提供網路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. and its business. Any statements regarding our future financial position, revenues, segment growth rates, earnings, gross margins, operating margins, future dividends or share repurchases, market shares, product introduction, future demand for our products and plans and objectives are forward-looking statements. 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. Information concerning these risk factors is contained in our Form 10-K, filed with the Securities and Exchange Commission.

本次財報電話會議包括有關 Garmin Ltd. 及其業務的預測和其他前瞻性聲明。任何有關我們未來財務狀況、收入、部門成長率、收益、毛利率、營業利潤、未來股息或股票回購、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均為前瞻性陳述。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，實際結果可能會出現重大差異。有關這些風險因素的資訊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. this morning are Cliff Pemble, President and Chief Executive Officer; and Doug Boessen, Chief Financial Officer and Treasurer.

今天早上代表 Garmin Ltd. 出席會議的是總裁兼執行長 Cliff Pemble；財務長兼財務長 Doug Boessen。

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

此時，我想將電話轉給 Cliff Pemble。

Thank you, Teri, and good morning, everyone. As announced earlier today, Garmin delivered outstanding results in the first quarter with strong growth in consolidated revenue and operating income. The positive trends we experienced at the close of 2023 strengthened in the first quarter of 2024. Consolidated revenue increased 20% to $1.38 billion, a new first quarter record with 4 segments delivering double-digit growth. Gross and operating margins expanded year-over-year to 58.1% and 21.6%, respectively, resulting in record first quarter operating income of $298 million, up 51% year-over-year. This resulted in pro forma EPS of $1.42, up 39% over the prior year, which is a remarkable result considering the significantly increased Swiss tax rates.

謝謝你，泰瑞，大家早安。正如今天早些時候宣布的那樣，Garmin 在第一季取得了出色的業績，綜合收入和營業收入強勁增長。我們在 2023 年底經歷的正面趨勢在 2024 年第一季得到加強。毛利率和營業利潤率較去年同期分別成長至 58.1% 和 21.6%，第一季營業收入創紀錄達到 2.98 億美元，較去年同期成長 51%。預計每股收益為 1.42 美元，比上年增長 39%，考慮到瑞士稅率大幅提高，這是一個了不起的成績。

We're off to a great start, and we're very pleased with these results. At the same time, we are mindful that Q1 is typically the lowest seasonal quarter of our financial year. And with this in mind, we're not updating the guidance we previously issued in February. Doug will discuss financial results in greater detail in a few minutes. But first, I'll provide a few remarks on the performance of each business segment.

我們有了一個良好的開端，我們對這些結果感到非常滿意。同時，我們注意到第一季通常是我們財政年度中季節性最低的季度。考慮到這一點，我們不會更新先前在二月發布的指南。道格將在幾分鐘內更詳細地討論財務表現。但首先，我將對每個業務部門的表現進行一些評論。

Starting with fitness, revenue increased 40% to $343 million, a new record driven by broad-based growth across all product categories, led by strong demand for advanced wearables. Gross and operating margins improved to 57% and 20%, respectively, resulting in operating income of $68 million. During the quarter, we launched the Forerunner 165, which was instantly recognized by the market as a product offering both exceptional value and great performance.

從健身開始，收入增長了 40%，達到 3.43 億美元，創下了新紀錄，這是由對先進可穿戴設備的強勁需求帶動的所有產品類別的廣泛增長推動的。毛利率和營業利益率分別提高至 57% 和 20%，營業收入達 6,800 萬美元。本季度，我們推出了 Forerunner 165，該產品立即被市場認可為兼具卓越價值和卓越性能的產品。

Also during the quarter, we published a new addition of the Garmin Health Research Glimpse, which focused on sleep research initiatives. The health metrics collected by Garmin wearables provide researchers with a wealth of information contributing to a deeper understanding of the intricate relationship between sleep and overall well-being.

同樣在本季度，我們也發布了 Garmin Health Research Glimpse 的新內容，重點在於睡眠研究計畫。 Garmin 穿戴式裝置收集的健康指標為研究人員提供了大量信息，有助於更深入地了解睡眠與整體健康之間的複雜關係。

Moving to outdoor. Revenue increased 11% to $366 million, with growth driven primarily by wearables. Gross and operating margins improved to 66% and 29%, respectively, resulting in operating income of $107 million. During the quarter, we released our annual inReach SOS year-end review, highlighting the importance of Garmin Response, which coordinates emergency response services in more than 200 countries and territories and supports rescue efforts in more than 210 languages. The emergency response coordination center is an important part of what differentiates our inReach SOS service from others.

搬到室外。營收成長 11%，達到 3.66 億美元，成長主要由穿戴式裝置推動。毛利率和營業利益率分別提高至 66% 和 29%，營業收入達 1.07 億美元。本季度，我們發布了年度 inReach SOS 年終回顧，強調了 Garmin Response 的重要性，該機構協調 200 多個國家和地區的應急響應服務，並以 210 多種語言支援救援工作。緊急應變協調中心是我們 inReach SOS 服務區別於其他服務的重要組成部分。

We also produced and released an original docuseries, called 7 Days Out, which follows 2 people on their journey through Nepal's Langtang hiking circuit. This docuseries highlights the extraordinary utility of our fenix 7 Pro adventure watches as well as the rich health metrics and long battery life these devices offer. 7 Days Out shows that ordinary people can accomplish extraordinary things with the right tools to help them beat yesterday.

我們也製作並發行了一部名為《7 Days Out》的原創紀錄片系列，講述了兩個人穿越尼泊爾 Langtang 健行路線的故事。這部紀錄片系列重點介紹了我們的 fenix 7 Pro 探險手錶的非凡實用性，以及這些設備提供的豐富的健康指標和較長的電池壽命。 《7 Days Out》表明，普通人可以利用正確的工具來完成非凡的事情，幫助他們戰勝昨天。

Looking next at aviation, revenue increased 2% in the first quarter to $217 million, driven by growth in OEM product categories. Gross margin improved to 75% and operating margin was 24%, resulting in operating income of $52 million. During the quarter, we unveiled a complete avionics modernization program with a highly popular Citation CJ2 business jet that offers new technologies and features designed to reduce pilot workload and improve safety. Also during the quarter, we added display options for our GWX 8000 StormOptix Weather Radar, which expands the availability of this advanced radar system to aircraft equipped with our highly popular GTN and TXi displays.

接下來看航空業，在 OEM 產品類別成長的推動下，第一季營收成長 2%，達到 2.17 億美元。毛利率提高至 75%，營業利益率為 24%，營業收入達 5,200 萬美元。本季度，我們推出了完整的航空電子現代化計劃，其中包括廣受歡迎的 Citation CJ2 公務機，該計劃提供旨在減少飛行員工作量並提高安全性的新技術和功能。此外，在本季度，我們還為 GWX 8000 StormOptix 天氣雷達添加了顯示選項，從而將這種先進雷達系統的可用性擴展到配備我們廣受歡迎的 GTN 和 TXi 顯示器的飛機。

Turning to the marine segment. Revenue increased 17% to $327 million, primarily driven by the acquisition of JL Audio. Excluding JL Audio, revenue increased approximately 3% in the first quarter. Gross and operating margins improved to 55% and 27%, respectively, resulting in operating income of $88 million.

轉向海洋領域。營收成長 17%，達到 3.27 億美元，主要得益於收購 JL Audio。不包括JL Audio，第一季營收成長約3%。毛利率和營業利益率分別提高至 55% 和 27%，營業收入達 8,800 萬美元。

We were recently recognized as Supplier of the Year by Independent Boat Builders, Inc. In addition, Garmin sponsored angler, Justin Hamer, was champion of the recent Bassmaster Classic fishing tournament on a boat exclusively equipped with our ECHOMAP Ultra 2 chartplotters, Force trolling motor and LiveScope Plus sonar system. During the quarter, we launched the GPSMAP 16 family chartplotters, adding larger touchscreen options for greater clarity, connectivity and control at the helm. We also launched the Panoptix PS70, our first deepwater live sonar, which provides real-time underwater imaging at depth up to 1,000 feet.

我們最近被Independent Boat Builders, Inc. 評為年度供應商。釣馬達和 LiveScope Plus 聲納系統。本季度，我們推出了 GPSMAP 16 系列海圖儀，增加了更大的觸控螢幕選項，以實現更高的清晰度、連接性和操控性。我們還推出了 Panoptix PS70，這是我們的首款深水即時聲納，可在深達 1,000 英尺的深度提供即時水下成像。

Moving finally to the auto OEM segment. Revenue increased 58% to $129 million, with growth primarily driven by increased shipments of domain controllers to BMW. Gross margin was 18%, and we recorded an operating loss of $16 million. During the quarter, we were awarded new business to design and manufacture digital instrument clusters for 2-wheel vehicles as well as full infotainment systems for an industrial truck maker.

最後轉向汽車 OEM 領域。營收成長 58%，達到 1.29 億美元，成長主要是由於BMW域控制器出貨量的增加。毛利率為 18%，營業虧損為 1,600 萬美元。本季度，我們獲得了新業務，為兩輪車輛設計和製造數位儀表組，以及為工業卡車製造商設計和製造完整的資訊娛樂系統。

That concludes my remarks. Next, Doug will walk you through additional details on our financial results. Doug?

我的發言到此結束。接下來，道格將向您介紹有關我們財務業績的更多詳細資訊。道格？

Thanks, Cliff. Good morning, everyone. I'd like to begin by reviewing our first quarter financial results, implied comments on the balance sheet, cash flow statement and taxes. We posted revenue of $1.382 billion for the first quarter, representing a 20% increase year-over-year. Gross margin was 58.1%, a 120 basis point increase from the prior year quarter. The increase was primarily due to product mix in certain segments partially offset by segment mix. Operating expense as a percentage of sales was 36.5%, 330 basis point decrease. Operating income was $298 million, a 51% increase. Operating margin was 21.6%, a 440 basis point increase. Our GAAP EPS was $1.43, pro forma EPS was $1.42.

謝謝，克里夫。大家，早安。我想先回顧一下我們第一季的財務表現、對資產負債表、現金流量表和稅收的隱含評論。我們第一季的營收為 13.82 億美元，年增 20%。毛利率為 58.1%，較去年同期成長 120 個基點。這一增長主要是由於某些細分市場的產品組合被細分市場組合部分抵消。營運費用佔銷售額的百分比為 36.5%，下降 330 個基點。營業收入為 2.98 億美元，成長 51%。營業利益率為 21.6%，成長 440 個基點。我們的 GAAP 每股收益為 1.43 美元，預計每股收益為 1.42 美元。

Next, look at our first quarter revenue by segment and geography. In the first quarter, we achieved double-digit growth in 4 or 5 segments, led by the auto OEM segment with 58% growth, the fitness segment with 40% growth. The marine and outdoor segments also had double-digit growth of 17% and 11%, respectively. By geography, we achieved a double-digit growth in all 3 regions, led by 30% growth in EMEA, followed by 17% growth in Americas and 12% growth in APAC.

接下來，按細分市場和地理查看我們第一季的收入。第一季度，我們在4、5個細分市場實現了兩位數成長，其中汽車OEM細分市場成長了58%，健身細分市場成長了40%。船舶和戶外領域也實現了兩位數成長，分別為 17% 和 11%。按地理劃分，我們在所有 3 個地區均實現了兩位數成長，其中歐洲、中東和非洲地區成長 30%，其次是美洲成長 17%，亞太地區成長 12%。

Looking next on operating expenses. First quarter operating expense increased by $48 million or 11%. Research and development increased approximately $21 million year-over-year, primarily due to engineering personnel costs. SG&A increased approximately $27 million compared to the prior year quarter, primarily due to increases in personnel-related expenses, including impact of JL Audio.

接下來看看營運費用。第一季營運費用增加 4,800 萬美元，成長 11%。研究與開發年增約 2,100 萬美元，主要是由於工程人員成本。 SG&A 與去年同期相比增加了約 2700 萬美元，主要是由於人事相關費用的增加，包括 JL Audio 的影響。

A few highlights on the balance sheet, cash flow statement and taxes. Ended the quarter with cash and marketable securities approximately $3.3 billion. Cash receivable increased year-over-year due to strong sales, but decreased sequentially to $695 million from a seasonally strong fourth quarter. Inventory decreased year-over-year and sequentially to approximately $1.3 billion. In the first quarter of 2024, we generated free cash flow of $402 million, $170 million increase from the prior year quarter. Capital expenditures for the first quarter of 2024 were $33 million, approximately $14 million lower than the prior year quarter.

資產負債表、現金流量表和稅收的一些要點。截至本季末，現金和有價證券約為 33 億美元。由於銷售強勁，應收現金年增，但較季節性強勁的第四季環比下降至 6.95 億美元。庫存較去年同期下降至約 13 億美元。 2024 年第一季度，我們產生了 4.02 億美元的自由現金流，比去年同期增加了 1.7 億美元。 2024 年第一季的資本支出為 3,300 萬美元，比去年同期減少約 1,400 萬美元。

In our first quarter of 2024, we paid dividends of approximately $140 million for an effective tax rate of 15.6% compared to 8.8% in the prior year quarter. Increase in effective tax rate is primarily due to the increase in the combined Switzerland tax rate in response to global minimum tax requirements.

2024 年第一季度，我們支付了約 1.4 億美元的股息，有效稅率為 15.6%，而去年同期為 8.8%。有效稅率的增加主要是由於瑞士為響應全球最低稅收要求而提高了綜合稅率。

That concludes our formal remarks. Paul, can you please open the line for Q&A?

我們的正式發言到此結束。保羅，您可以開闢問答線嗎？

(Operator Instructions) And your first question comes from the line of Joseph Cardoso from JPMorgan.

（操作員說明）您的第一個問題來自摩根大通的約瑟夫·卡多佐（Joseph Cardoso）。

So maybe first one here is, you're starting off the year strongly. And I appreciate you guys are not updating the guidance here given we're only 1 quarter in, but I was wondering if you could help us think through the shape of the year relative to typical revenue seasonality and whether there are any puts and takes that investors should keep in mind that might be different relative to historical trends as we think about the remainder of the year? And then I have a quick follow-up.

所以也許這裡的第一個是，你在新的一年表現強勁。我很感激你們沒有更新這裡的指導，因為我們只進入了第一個季度，但我想知道你們是否可以幫助我們思考相對於典型收入季節性的今年的情況，以及是否有任何看跌期權和看跌期權投資者應該記住，當我們考慮今年剩餘時間時，這可能與歷史趨勢有所不同？然後我會進行快速跟進。

Yes. I think one thing to keep in mind as we go forward throughout the rest of the year is the timing of new product releases. I think Q1 was probably the most easy comp that we had in the year-over-year comparables as we now anniversary some of the strong product releases that we had last year and also consider the timing of new products this year. So that's part of what we have in mind as well.

是的。我認為在今年剩餘時間我們要記住的一件事是新產品發布的時間。我認為第一季可能是我們在同比比較中最簡單的比較，因為我們現在正在慶祝去年發布的一些強大產品，並且還考慮了今年新產品的發佈時間。這也是我們想法的一部分。

Got it. That's fair. And then maybe Cliff, you could touch on, like, obviously, wearables across fitness and outdoor have been performing strongly and part of that is what you just kind of referenced there around product releases or new product announcements. So I was just curious if you could provide some other color there as to where you have been seeing the strength and perhaps touch on trends you're seeing relative to volume and pricing as well as potentially new users versus replacement demand, just to get further granularity around some of the strength you're seeing in the wearables across both fitness and outdoor.

知道了。這還算公平。然後，也許 Cliff，你可以提到，顯然，健身和戶外領域的可穿戴設備一直表現強勁，其中一部分就是你剛才在產品發布或新產品公告中提到的內容。因此，我很好奇您是否可以提供一些其他顏色來說明您在哪裡看到了優勢，也許還涉及了您所看到的相對於數量和價格以及潛在新用戶與替換需求的趨勢，只是為了進一步了解詳細介紹您在健身和戶外運動中看到的可穿戴設備的一些優勢。

We would say that our product lineup across fitness and outdoor is very strong. Our products are unique, highly differentiated compared to a lot of products that are on the market. So people look to our products for particularly inspiration around activity, but sports wellness, all those things is something that we're known for. So we're definitely seeing people appreciate our products for those things. Registrations have been strong. So we're seeing that follow through at retail, and we still see the majority of our users that are coming in as new users to Garmin as opposed to repeat. So we see that favoring new users in our overall product line between the 2 segments.

我們可以說，我們的健身和戶外產品陣容非常強大。與市場上的許多產品相比，我們的產品是獨特的、高度差異化的。因此，人們從我們的產品中尋找有關活動的特別靈感，但運動健康，所有這些都是我們眾所周知的。因此，我們確實看到人們因這些方面而欣賞我們的產品。註冊量一直很強。因此，我們在零售領域看到了這種情況，而且我們仍然看到大多數用戶都是 Garmin 的新用戶，而不是重複用戶。因此，我們看到在這兩個細分市場之間的整個產品線中，有利於新用戶。

Your next question comes from the line of George Wang from Barclays.

你的下一個問題來自巴克萊銀行的喬治王。

Just firstly, maybe you can comment on kind of outlook for the inventory. You guys cut down inventory again in the March quarter. Just curious what's your expectation for the inventory situation exiting this year compared to last year?

首先，也許您可以評論一下庫存的前景。你們在三月季度再次削減了庫存。只是好奇您對今年庫存狀況與去年相比有何預期？

Yes. So as it relates to inventory, it was lower on a year-over-year basis as well as sequential, and one of the big reasons was just due to our strong sales. As it relates to what we expect by the end of the year, we do expect inventory to increase year-over-year basis, primarily hopefully in line with our sales, make sure we have enough inventory to meet our demand.

是的。因此，就庫存而言，年比和季均較低，其中一個重要原因是我們強勁的銷售。由於這與我們到年底的預期有關，我們確實預計庫存將同比增加，主要希望與我們的銷售保持一致，確保我們有足夠的庫存來滿足我們的需求。

Okay. Great. And also recognizing you guys are not updating the revenue guidance since it's early in the year. But any thoughts on kind of a refreshed outlook on the full year free cash and CapEx, considering the 1Q, the free cash flow is pretty strong. The CapEx was actually lower than expected. Just curious if there's any change to the full year outlook.

好的。偉大的。而且還體認到你們並沒有更新收入指引，因為現在才年初。但考慮到第一季度，自由現金流相當強勁，對全年自由現金和資本支出的新前景有任何想法。資本支出實際上低於預期。只是好奇全年展望是否有任何變化。

Yes. At this time, we're not updating our free cash flow or CapEx outlook. If we update our guidance into Q2, we'll update at that point in time. But we are very pleased with our cash flow that came in, in Q1 as primarily due to the strong sales that we saw.

是的。目前，我們不會更新我們的自由現金流或資本支出前景。如果我們將指導更新到第二季度，我們將及時更新。但我們對第一季的現金流感到非常滿意，這主要是因為我們看到了強勁的銷售。

Your next question comes from the line of Ben Bollin from Cleveland Research.

您的下一個問題來自克利夫蘭研究中心的 Ben Bollin。

Cliff or Doug, I was hoping we could talk about the gross margin behavior within outdoor and fitness. Both were up year-over-year and sequential. You talked about encouraging product mix. Could you talk a little bit about how much of the traction or strength in gross margin is individual products versus maybe input prices, components, transport? Just any moving pieces there to be aware of?

克里夫或道格，我希望我們可以討論戶外和健身領域的毛利率行為。兩者均較去年同期連續成長。您談到了鼓勵產品組合。您能否談談個別產品相對於投入價格、零件、運輸對毛利率的牽引力或強度有多大？有什麼需要注意的移動部分嗎？

Yes. Yes. The gross margin was up year-over-year for both fitness and outdoor. Product mix was the biggest driver of that and actually, we sold in more of our new products, which have a higher gross margin. We did see some favorability year-over-year for lower freight costs. And overall, our costs are lower year-over-year also. We continue to look at ways to lower our cost from both the component as well as production standpoint.

是的。是的。健身和戶外運動的毛利率均較去年同期成長。產品組合是最大的推動力，實際上，我們銷售了更多的新產品，這些產品的毛利率更高。我們確實看到了同比下降的貨運成本的一些優惠。整體而言，我們的成本也逐年降低。我們繼續從組件和生產的角度尋找降低成本的方法。

That's great. And then the last one for me is when we look at the auto business, what's the right way to think about the trajectory of the margin performance here over time? And any framing on how material the wins are when they start to contribute from the quarter, the 2-wheel vehicles and the industrial truck contribution?

那太棒了。對我來說最後一個問題是，當我們審視汽車業務時，思考利潤率表現隨時間變化的軌蹟的正確方法是什麼？當他們開始從季度、兩輪車輛和工業卡車貢獻中做出貢獻時，是否有關於勝利有多大的框架？

Yes. In terms of margin, Ben, we've talked about how this segment will settle into a margin profile that's in the gross margin in the high teens and the operating margin in the mid-single digits. That's kind of typical what we see in this industry. We're certainly in the process of building our scale and the ramp into that. And so as the mix has shifted towards domain controllers, that's why you've seen the margin change as it has. In terms of the new business, in terms of volumes, this is a very significant new volumes adding to our overall infrastructure and planning. In terms of revenue, we announced in first quarter that -- or pardon me Q4 that we had secured some significant new business, and this is in addition. So this is an adder to that. But overall, we do have a sizable amount of awarded business that's ahead of us.

是的。就利潤率而言，Ben，我們已經討論過該細分市場將如何適應毛利率高十幾歲和營業利潤率中個位數的利潤狀況。這是我們在這個行業看到的典型情況。當然，我們正在擴大規模並逐步實現這一目標。因此，隨著組合轉向網域控制器，這就是為什麼您會看到利潤變化。就新業務而言，就數量而言，這是一個非常重要的新數量，增加了我們的整體基礎設施和規劃。就收入而言，我們在第一季宣布——或者請原諒我第四季度，我們已經獲得了一些重要的新業務，這是額外的。所以這是一個加法器。但總體而言，我們確實有大量獲獎業務等著我們。

Your next question comes from the line of Erik Woodring from Morgan Stanley.

您的下一個問題來自摩根士丹利的埃里克·伍德林（Erik Woodring）。

Great. Maybe just one on the modeling side to follow up on one of the first questions. I know you don't guide super granular on a quarterly basis. But if we look to 2Q, historically, we see some seasonality that is quite strong. And you just posted a very above seasonal quarter. So I'm just wondering for 1Q, was there anything notable in terms of one-off tailwinds or anything unusual that would not repeat as we just think about seasonality as we look forward on a go-forward basis? And then I have a follow-up.

偉大的。也許只是建模方面的一個人來跟進第一個問題之一。我知道您不會按季度提供超細粒度的指導。但如果我們回顧第二季度，從歷史上看，我們會看到一些相當強大的季節性。您剛剛發布了一個非常高於季節性的季度。所以我只是想知道第一季度，在一次性順風方面是否有任何值得注意的事情，或者有什麼不尋常的事情不會重複，因為我們在展望未來時只考慮季節性？然後我有一個後續行動。

Yes, I think, Erik, one of the factors to consider is that the timing of new product releases, both last year and this year, will be a factor in creating noise between the quarters. This year, Q1 was still marked by a relatively easy comp, especially in fitness, with our new product introductions that happened last year towards the end of Q1 into Q2. So definitely, that will create a different dynamic in Q2. And then just generally, as we look out for the rest of the year, the timing of other new product introductions is in our minds in terms of how we look at the whole year.

是的，我認為，艾瑞克，要考慮的因素之一是去年和今年新產品發布的時間，將成為在季度之間製造噪音的一個因素。今年，第一季的競爭仍然相對簡單，尤其是在健身方面，我們去年在第一季末到第二季推出了新產品。因此，這肯定會在第二季創造不同的動態。一般來說，當我們展望今年剩餘時間時，其他新產品推出的時間取決於我們對全年的看法。

Okay. And then, Doug, I know you like to have a kind of a rainy day slush fund. Again, it's always best to have liquidity when no one else does. And I appreciate that, but you have over $3 billion of net in gross cash, probably not earning your cost of capital today. Just can you help us understand why you wouldn't put more of that to work? Obviously, on an organic basis, you're seeing a ton of success. Why not complement that with either accelerating buybacks or more work that you can do organically? What stops you from taking those kind of actions?

好的。然後，道格，我知道你喜歡擁有一種以備不時之需的賄賂基金。再說一次，當沒有人擁有流動性時，擁有流動性總是最好的。我對此表示讚賞，但您擁有超過 30 億美元的淨現金總額，今天可能無法賺取資本成本。您能否幫助我們理解為什麼您不投入更多的精力？顯然，在有機的基礎上，你會看到巨大的成功。為什麼不透過加速回購或更多可以有機完成的工作來補充這一點呢？是什麼阻止您採取此類行動？

Yes, good question. As it relates to cash, we do have our priorities for cash being reliable dividends. As you mentioned, our investments back in our business, whether for manufacturing facilities or just strengthening our business for the growth that we have looking at strategic acquisitions, such as JL Audio and then share repurchase. It relates to share repurchases, that is depending upon your market conditions, business conditions. I do want to remind you that we were in the blackout for most of Q1 from a standpoint. But our priorities for cash are consistent with what they've been for a while.

是的，好問題。就現金而言，我們確實優先考慮現金是可靠的股息。正如您所提到的，我們對業務的投資，無論是用於製造設施還是只是為了加強我們的業務以實現成長，我們都在考慮策略性收購，例如 JL Audio，然後進行股票回購。它涉及股票回購，那就取決於你的市場狀況、業務狀況。我確實想提醒您，從角度來看，我們在第一季的大部分時間都處於停電狀態。但我們對現金的優先考慮與一段時間以來是一致的。

Next question comes from the line of David MacGregor from Longbow Research.

下一個問題來自 Longbow Research 的 David MacGregor。

I guess I wanted to ask around inventories, but maybe focus around channel inventories, if you will. And can you talk about sell-through rates across your various lines? And as you think across these lines, where are channel inventory levels, may be a little higher or a little lower, just adjusting for seasonal patterns, of course.

我想我想詢問庫存情況，但如果你願意的話，也許可以關注渠道庫存。能談談各產品線的銷售率嗎？正如您在這些方面所思考的那樣，通路庫存水準可能會稍高或稍低，當然，只是根據季節性模式進行調整。

We think that channel inventory is really clean and healthy at this point. We don't see any concerns. In terms of overall inventory retailers and across our businesses, frankly, are not placing big bets on inventory. So when they buy in, they know that there's customers there that want it, and the availability of product is much better now than it has been over the last kind of disruption of the last 4 years in supply chain. So we feel very good about it. And we also feel like the registration rates are very consistent with the quantities that we're selling in.

我們認為目前通路庫存確實乾淨且健康。我們沒有看到任何擔憂。坦白說，就整體庫存而言，零售商和我們的整個業務並沒有在庫存上下很大的賭注。因此，當他們購買產品時，他們知道那裡有客戶想要它，而且現在產品的可用性比過去四年供應鏈的最後一次中斷要好得多。所以我們對此感覺非常好。我們也認為註冊率與我們銷售的數量非常一致。

And if I could go back to the question on inventory, obviously, a substantial work down inventory this quarter, and you alluded to the strength of the business and just a lot stronger than maybe you had expected. What are the implications there for sort of second and third quarter margins as you rebuild that inventory? I would guess you get a better fixed cost absorption, better operating leverage. Should we be modeling a stronger margin performance as a consequence of inventory rebuild?

如果我可以回到庫存問題，顯然，本季庫存大幅減少，您提到了業務的實力，而且比您預期的要強得多。當你重建庫存時，這對第二季和第三季的利潤率有何影響？我猜你會得到更好的固定成本吸收和更好的營運槓桿。我們是否應該透過庫存重建來模擬更強勁的利潤表現？

No, that's not really a big factor for us. But there is the part where you're mentioning there, just basically leveraging some of our overheads do production, but that's just a part of us managing our overall cost and having a lower cost structure.

不，這對我們來說並不是一個大因素。但你提到的一部分，基本上只是利用我們的一些管理費用來生產，但這只是我們管理整體成本和降低成本結構的一部分。

Okay. And last question for me, is there any way you can sort of provide some color or granularity around how much of the growth right now? I mean, setting aside auto OEM, but the other 4 segments, how much of the growth rate now would be price versus unit growth?

好的。我的最後一個問題是，有什麼方法可以提供一些關於目前增長多少的顏色或粒度嗎？我的意思是，拋開汽車原始設備製造商，但其他 4 個細分市場，現在的成長率有多少是價格與單位成長的關係？

I think it's mostly driven by higher unit volumes.

我認為這主要是由單位銷售增加所推動的。

Congrats on all the progress.

祝賀所有的進展。

Your next question comes from the line of Jordan Lyonnais, Bank of America.

您的下一個問題來自美國銀行喬丹·里昂 (Jordan Lyonnais)。

I appreciate that it's a softer comp in the quarter, but really strong growth in Europe and Asia, too. Are you expecting those markets to continue on this trend and you see a recovery?

我很欣賞本季的比較疲軟，但歐洲和亞洲的成長也非常強勁。您是否預計這些市場將繼續保持這一趨勢並看到復甦？

I think one factor to consider geographically is the impact of higher auto OEM volumes on those regions. So when we produce and sell, for instance, domain controllers out of Europe, that tends to increase disproportionately the revenue there. So there's some puts and takes because of that. But generally, our wearable products performed very well in Europe. Asia has been influenced by auto OEM some, but we also have some tailwind with -- excuse me, some headwind due to currency issues in the region as well. So there's just lots of factors. There probably isn't any one that we could point to and try to draw conclusions about it.

我認為從地理角度考慮的一個因素是汽車原始設備製造商產量增加對這些地區的影響。因此，當我們在歐洲以外生產和銷售網域控制器時，往往會不成比例地增加那裡的收入。因此，有一些放和取。但總的來說，我們的可穿戴產品在歐洲表現得很好。亞洲受到了汽車原始設備製造商的一些影響，但我們也有一些順風——對不起，由於該地區的貨幣問題也有一些逆風。所以有很多因素。可能沒有任何一個我們可以指出並試圖得出結論。

(Operator Instructions) And your next question comes from the line of Noah Zatzkin from KeyBanc Capital Markets.

（操作員說明）您的下一個問題來自 KeyBanc Capital Markets 的 Noah Zatzkin。

Maybe just on the marine segment, strong performance there. First, hoping you could provide kind of an update on how JL Audio is performing post acquisition relative to expectations now that we're a couple of quarters in? And then second, if you could remind us what the full year benefit from JL Audio is embedded in the marine guide? And then I was just hoping to get your thoughts on the state of the marine end market in general, given what looks like pretty strong organic outperformance this quarter versus the industry?

也許只是在海洋領域，那裡的表現強勁。首先，希望您能提供有關 JL Audio 在收購後的表現與預期的最新情況，因為我們已經過了幾個季度了？其次，您能否提醒我們航海指南中包含的 JL Audio 全年優勢是什麼？然後，我只是希望了解您對船舶終端市場整體狀況的看法，因為本季的有機表現與行業相比相當強勁？

Yes. I think generally, we would say our JL performance was in line with what we expected. I think leading right into that question about the overall state of the market I think I would say the marine market has kind of stabilized. It's historically not a huge growth market, as you know. So I think we're kind of past some of the ripples that we've seen over the last few years. And there is certainly some issues out there right now with boat inventories that people have been talking about. But in general, those have not impacted us in any kind of significant way.

是的。我認為總的來說，我們會說我們的 JL 表現符合我們的預期。我認為直接進入有關市場整體狀況的問題，我想我會說海運市場已經穩定下來。如您所知，從歷史上看，這並不是一個巨大的成長市場。所以我認為我們已經擺脫了過去幾年所看到的一些漣漪。人們一直在談論的船舶庫存現在肯定存在一些問題。但總的來說，這些並沒有對我們造成任何重大影響。

And I think on a full year basis, Doug?

我認為以全年為基礎，道格？

Yes, sure. As it relates to JL Audio, basically, we expect JL Audio on the revenue line to be about 15% of the total marine business.

是的，當然。由於它與 JL Audio 相關，基本上，我們預計 JL Audio 的收入將佔整個船舶業務的 15% 左右。

We have a follow-up question from David MacGregor from Longbow Research.

Longbow Research 的 David MacGregor 向我們提出了後續問題。

I guess there's been some talk just in the macro lately of consumers getting more cautious and mixing down, and then we get these rather disappointing consumer confidence numbers here today. Just how you -- obviously, you've got a lot of innovation in the marketplace. You talked already about the strong mix, and that seems to be overpowering whatever might be occurring underneath in terms of deteriorating consumer confidence. But what are you seeing at all in terms of just maybe leading indicators or things you watch for consumer mix down and how that might ultimately impact your -- the mix and kind of the subscription rate around new product introductions over the balance of the year?

我想最近宏觀方面有一些關於消費者變得更加謹慎和混合的討論，然後我們今天在這裡得到了這些相當令人失望的消費者信心數據。顯然，您在市場上有很多創新。您已經談到了強大的組合，這似乎壓倒了消費者信心惡化方面可能發生的任何情況。但是，從領先指標或您關注的消費者組合下降的情況來看，您到底看到了什麼？

I would say, generally, our customer base are in groups that are probably less affected by the overall sentiment that you hear broadly about. So we certainly have products across all kinds of price ranges, but mostly our products tend to be products with high innovation and high desirability and therefore, their pricing is not necessarily at the bottom of the market. So in general, we've actually seen very strong response to some of our high-end products even when we release products, for example, in running like the Forerunner 165, which is an incredibly strong product, and we're receiving a great result from that, but we also continue to see strength in the higher-end products as well. So in general, I would say mostly people are buying based on their needs, and we haven't seen a lot of evidence of mixing down that we could point to with confidence.

我想說，一般來說，我們的客戶群可能較少受到您廣泛聽到的整體情緒的影響。所以我們當然有各種價位的產品，但我們的產品大多是創新性高、需求量大的產品，因此，它們的定價不一定是市場底部的。所以總的來說，即使我們發布產品，我們實際上也看到了對我們的一些高端產品非常強烈的反應，例如，像Forerunner 165 這樣的跑步產品，這是一款非常強大的產品，我們收到了很好的回饋但我們也繼續看到高端產品的實力。所以總的來說，我想說大多數人都是根據自己的需求來購買的，而且我們還沒有看到很多我們可以自信地指出的混合證據。

This concludes our Q&A session for today. I will now turn the conference back over to Teri for closing remarks.

我們今天的問答環節到此結束。我現在將把會議轉回給泰瑞做閉幕詞。

Thank you all for your time today. As usual, Doug and I are available for callbacks. Have a wonderful day. Bye.

感謝大家今天抽出時間。像往常一樣，我和道格可以回電。祝你有美好的一天。再見。

This concludes today's conference call. Enjoy the rest of your day. You may now disconnect.

今天的電話會議到此結束。享受你一天剩下的時間。您現在可以斷開連線。