台灣國際航電 (GRMN) 2020 Q2 法說會逐字稿

Good morning, ladies and gentlemen, and welcome to the Garmin Ltd. Second Quarter 2020 Earnings Call. (Operator Instructions)

女士們先生們，早上好，歡迎來到 Garmin Ltd. 2020 年第二季度財報電話會議。 （操作員說明）

As a reminder, this conference might be recorded. I would now like to turn the conference over to your host, Ms. Teri Seck. Ma'am?

提醒一下，這次會議可能會被錄音。我現在想把會議轉交給你的東道主 Teri Seck 女士。女士？

Good morning. We would like to welcome you to Garmin Ltd. Second Quarter 2020 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/doc. An archive of the webcast and related transcripts will also be available on our website.

早上好。歡迎您參加 Garmin Ltd. 2020 年第二季度收益電話會議。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/doc 上獲取。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. and its business. Any statements regarding our future financial position, revenues, earnings, gross margins, operating margins, future dividends, market shares, product introductions, future demand for our products and plans and objectives and the future impact of actual or potential cyber attacks 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 has been contained in our Form 10-K and second quarter 2020 Form 10-Q 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陳述。任何關於我們未來財務狀況、收入、收益、毛利率、營業利潤率、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以及實際或潛在網絡攻擊的未來影響的任何陳述都是前瞻性的聲明。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。有關這些風險因素的信息已包含在我們向美國證券交易委員會提交的 10-K 表格和 2020 年第二季度 10-Q 表格中。

In particular, there is significant uncertainty about the duration and impact of the COVID-19 pandemic. This means that results could change at any time, and any statement about the impact of COVID on the company's business results and outlook is the best estimate based on the information available as of today's date.

特別是，COVID-19 大流行的持續時間和影響存在很大的不確定性。這意味著結果可能隨時發生變化，任何關於 COVID 對公司業務結果和前景影響的陳述都是根據截至今天可用的信息做出的最佳估計。

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

今天上午代表 Garmin Ltd. 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. As announced earlier today, Garmin reported strong second quarter financial results during a period of extreme uncertainty created by the COVID-19 pandemic. As reported last time, the onset of the coronavirus pandemic and measures taken to control the spread of the virus had a significant impact on the economy, on retailers and our consumers. The month of April was particularly challenging for every business, including Garmin. However, conditions steadily improved, and we ended the quarter with significant growth momentum.

謝謝泰瑞，大家早上好。正如今天早些時候宣布的那樣，Garmin 在 COVID-19 大流行造成的極端不確定時期報告了強勁的第二季度財務業績。正如上次報導的那樣，冠狀病毒大流行的爆發以及為控制病毒傳播而採取的措施對經濟、零售商和我們的消費者產生了重大影響。 4 月份對包括 Garmin 在內的所有企業來說都特別具有挑戰性。然而，情況穩步改善，我們以顯著的增長勢頭結束了本季度。

Consolidated revenue came in at $870 million, down only 9% on a year-over-year basis. We experienced strong growth from certain online channels, including garmin.com, which partially offset weakness from retailers who were disrupted during the early phases of the pandemic. We also delivered strong profitability. Gross margin was 59.3%. Operating margin was 21.7%, with operating income of $188 million for the quarter. This resulted in GAAP EPS of $0.96 and pro forma EPS of $0.91 for the quarter. Doug will provide additional financial details in a moment, but first, I'd like to make a few remarks on the performance of our business segments.

綜合收入為 8.7 億美元，同比僅下降 9%。我們經歷了某些在線渠道的強勁增長，包括 garmin.com，這部分抵消了在大流行早期階段中斷的零售商的疲軟。我們還實現了強勁的盈利能力。毛利率為59.3%。營業利潤率為 21.7%，本季度營業收入為 1.88 億美元。這導致該季度的 GAAP 每股收益為 0.96 美元，預計每股收益為 0.91 美元。 Doug 稍後將提供更多財務細節，但首先，我想就我們業務部門的表現發表一些評論。

Starting with the fitness segment, revenue increased 17%, driven by strong consumer interest in health and fitness. Sales of advanced wearables and cycling products were very strong in the quarter. Gross and operating margins were 53% and 24%, respectively.

從健身領域開始，在消費者對健康和健身的強烈興趣的推動下，收入增長了 17%。本季度高級可穿戴設備和自行車產品的銷售非常強勁。毛利率和營業利潤率分別為 53% 和 24%。

We recently acquired Firstbeat Analytics, our longtime partner and leading provider of physiological analytics technology for health, fitness and athletic performance. This acquisition will help us achieve even greater levels of innovation that will benefit consumers. Looking forward, we expect that the interest in health and fitness will remain very strong. We are ready to see this opportunity with a great lineup of new products with more new products on the way.

我們最近收購了 Firstbeat Analytics，這是我們的長期合作夥伴，也是健康、健身和運動表現生理分析技術的領先供應商。此次收購將幫助我們實現更高水平的創新，讓消費者受益。展望未來，我們預計人們對健康和健身的興趣將保持非常強烈。我們已經準備好看到這個機會，推出一系列新產品，並推出更多新產品。

Looking next at marine. Revenue increased 4% as boating and fishing became popular pastimes during the pandemic. Many boat builders were idle during the quarter, which tempered our growth, but retail sales were very strong, led by chartplotters and Panoptix sonars. Gross and operating margins were 59% and 28%, respectively. During the quarter, we launched quatix solar, our first marine smartwatch featuring solar charging technology. Looking forward, interest in our marine products remains very strong. We anticipate an extended marine season this year as boaters maximize their time on the water and boat builders work through production backlogs. Additionally, we intend to leverage our compelling product lineup to capture additional market share.

接下來看海洋。由於划船和釣魚在大流行期間成為流行的消遣，收入增長了 4%。本季度許多造船商閒置，這緩和了我們的增長，但在海圖儀和 Panoptix 聲納的帶動下，零售銷售非常強勁。毛利率和營業利潤率分別為 59% 和 28%。本季度，我們推出了 quatix solar，這是我們首款採用太陽能充電技術的航海智能手錶。展望未來，人們對我們海產品的興趣依然濃厚。我們預計今年的海洋季節會延長，因為船工們會最大限度地利用他們在水上的時間，而造船商會努力解決生產積壓的問題。此外，我們打算利用我們引人注目的產品陣容來獲得更多的市場份額。

Turning next to the outdoor segment. Revenue decreased 2%. Weakness in traditional handheld categories was mostly offset by growth in adventure watches. Gross margin and operating margin were 65% and 33%, respectively. We recently incorporated solar charging technology into the fenix 6, the 6S, the Instinct line and tactix Delta smartwatches. The Instinct Solar sets a new standard in low power technology by achieving unlimited smartwatch operation using only the energy harvested from the sun. We expect that our solar harvesting technology will be a significant differentiator for us in the smartwatch market. Interest in adventure and outdoor activity remains very strong. We are ready to seize this opportunity with a great lineup of recently introduced products with more new products and new categories on the way.

轉向室外部分。收入下降了 2%。傳統手持設備類別的疲軟大部分被冒險手錶的增長所抵消。毛利率和營業利潤率分別為 65% 和 33%。我們最近將太陽能充電技術應用到 fenix 6、6S、Instinct 系列和 tactix Delta 智能手錶中。 Instinct Solar 通過僅使用從太陽收集的能量實現無限智能手錶操作，為低功耗技術樹立了新標準。我們預計我們的太陽能收集技術將成為我們在智能手錶市場的重要差異化因素。對冒險和戶外活動的興趣仍然非常強烈。我們準備好抓住這個機會，推出一系列最近推出的產品，以及更多新產品和新品類。

Turning next to the aviation segment. Revenue decreased 31% as the pandemic created economic uncertainty that negatively impacted OEM partners and retrofit activity. In addition, sales of ADS-B products rapidly declined, as we expected, after the U.S. mandate passed and the market matured. Gross and operating margins were 73% and 12%, respectively. During the quarter, Autoland was certified, marking the beginning of a new era for general aviation safety technology. Autoland is already available and flying on the Piper M600 and Daher TBM 940, and additional certifications are on the way. For the remainder of the year, we anticipate aviation will continue to face challenging headwinds. However, we remain confident in the long-term outlook for this segment as interest in general aviation remains high and we are prepared with a strong lineup of products for every aircraft application. In addition, we believe that advanced safety technologies such as Autoland will make general aviation accessible to more people, which in turn is expected to grow the market.

接下來轉向航空部門。由於大流行造成經濟不確定性，對 OEM 合作夥伴和改造活動產生負面影響，收入下降了 31%。此外，正如我們預期的那樣，在美國授權通過和市場成熟後，ADS-B 產品的銷售額迅速下降。毛利率和營業利潤率分別為 73% 和 12%。本季度，奧托蘭通過認證，開啟通用航空安全技術新紀元。 Autoland 已經可用並在 Piper M600 和 Daher TBM 940 上飛行，其他認證正在進行中。在今年餘下的時間裡，我們預計航空業將繼續面臨充滿挑戰的逆風。然而，我們對這一領域的長期前景充滿信心，因為人們對通用航空的興趣仍然很高，而且我們為每種飛機應用準備了強大的產品陣容。此外，我們相信，Autoland 等先進的安全技術將使更多人能夠使用通用航空，進而有望推動市場增長。

Finally, for the auto segment, revenue decreased 46% as automakers idled their factories and driving activity decreased significantly. Gross margin was 47%, with an operating loss of $10 million in the quarter, driven by the investment we are making to complete several significant programs. Specialty RV and truck categories were a bright spot during the quarter. We launched several products, including new diesel navigators with oversized displays and enhanced routing features and our new RV 890 navigator designed specifically for the needs of the RV and camping lifestyle. Looking forward, we anticipate that revenue from OEM products will grow in the back half of the year as we complete several OEM programs. Additionally, we continue to invest in specialty products and expect to enter new market verticals soon.

最後，在汽車領域，由於汽車製造商工廠閒置和駕駛活動顯著減少，收入下降了 46%。毛利率為 47%，本季度營業虧損為 1000 萬美元，原因是我們為完成幾個重要項目而進行的投資。特種房車和卡車類別是本季度的亮點。我們推出了幾款產品，包括具有超大顯示屏和增強路線功能的新型柴油導航器，以及專為房車和露營生活方式的需求而設計的新型 RV 890 導航器。展望未來，隨著我們完成幾個 OEM 計劃，我們預計 OEM 產品的收入將在下半年增長。此外，我們繼續投資於特色產品，並期望很快進入新的垂直市場。

And finally, most of you are aware of the recent cyber attack that led to a network outage affecting much of our website and consumer-facing applications. We immediately assessed the nature of the attack and started remediation efforts. We have no indication that any customer data was accessed, lost or stolen. Additionally, the functionality of Garmin products was not affected other than the ability to access some online services. Critical affected business systems have been restored, and we expect to restore remaining systems in the coming days. We appreciate the patience and kind words of support we've received from customers and friends during this challenge.

最後，你們中的大多數人都知道最近的網絡攻擊導致網絡中斷，影響了我們的大部分網站和麵向消費者的應用程序。我們立即評估了攻擊的性質並開始了補救工作。我們沒有跡象表明任何客戶數據被訪問、丟失或被盜。此外，除了訪問某些在線服務的能力外，Garmin 產品的功能並未受到影響。受影響的關鍵業務系統已經恢復，我們預計在未來幾天內恢復剩餘的系統。我們感謝客戶和朋友在這次挑戰中給予我們的耐心和友好的支持。

So that concludes my remarks. Next, Doug will walk us through additional details on financial results. Doug?

我的發言到此結束。接下來，Doug 將向我們介紹有關財務結果的更多詳細信息。道格？

Thanks, Cliff. Good morning, everyone. I'll begin by reviewing our second quarter financial results, move to comments on the balance sheet, cash flow statement and taxes. We posted revenue of $870 million for the second quarter, representing a 9% decrease year-over-year. Gross margin was 59.3%, 100 basis point decrease in the prior year. Operating expense as a percentage of sales was 37.6%, a [220] basis point increase from the prior year. Operating income was $188 million, a 26% decrease year-over-year. Operating margin was 21.7%, a 510 basis point decrease from the prior year. Our GAAP EPS was $0.96. Pro forma EPS was $0.91.

謝謝，克里夫。大家，早安。我將首先回顧我們的第二季度財務業績，然後轉向對資產負債表、現金流量表和稅收的評論。我們公佈第二季度收入為 8.7 億美元，同比下降 9%。毛利率為 59.3%，比上年下降 100 個基點。營業費用佔銷售額的百分比為 37.6%，比上一年增加 [220] 個基點。營業收入為 1.88 億美元，同比下降 26%。營業利潤率為 21.7%，比上年下降 510 個基點。我們的 GAAP 每股收益為 0.96 美元。預計每股收益為 0.91 美元。

Next, we look at our second quarter revenue by segment. We achieved revenue of $870 million with 2 of our 5 segments posting growth, led by the fitness segment with strong revenue growth of 17%. As seen in the charts, we have a diversified business model from both a segment and geography perspective.

接下來，我們按部門查看第二季度的收入。我們實現了 8.7 億美元的收入，我們的 5 個部門中有 2 個實現了增長，其中健身部門以 17% 的強勁收入增長為首。如圖表所示，從細分市場和地域角度來看，我們擁有多元化的商業模式。

Looking at our year-to-date revenue for the first 6 months of 2020. Our consolidated revenue was flat to the prior year, with 2 of our segments posting growth, led by fitness with 20% growth; marine, with 12% growth. Our geography, EMEA is up 6%; Americas is flat compared to the prior year.

看看我們 2020 年前 6 個月的年初至今收入。我們的綜合收入與上一年持平，我們的 2 個部門實現增長，其中以健身為首，增長 20%；海洋，增長 12%。我們的地理區域，EMEA 增長了 6%；與上一年相比，美洲持平。

Looking next, operating expenses. Our second quarter operating expenses increased by $8 million or 2%. Research and development increased $17 million year-over-year, primarily due to investments in engineering resources. Advertising expenses decreased approximately $12 million from the prior year quarter due to lower media spend. SG&A increased $3 million compared to the prior year quarter, primarily due to increases in personnel-related expenses.

接下來看運營費用。我們第二季度的運營費用增加了 800 萬美元或 2%。研發同比增長 1700 萬美元，這主要是由於對工程資源的投資。由於媒體支出減少，廣告費用較上年同期減少約 1200 萬美元。 SG&A 與去年同期相比增加了 300 萬美元，這主要是由於人事相關費用的增加。

A few highlights on the balance sheet, cash flow statement and taxes. We ended the quarter with cash and marketable securities of approximately $2.7 billion and no debt. Accounts receivable increased sequentially to $524 million, but decreased year-over-year in line with second quarter sales. Inventory balance increased on both a sequential year-over-year basis due to our strategy to increase data supply, sport increasingly diversified product lines, timing of product launches, the transition to a higher percentage of ocean shipments compared to air. In the second quarter of 2020, we generated free cash flow of $142 million, $62 million increase from the prior quarter. In the second quarter 2020, we report an effective tax rate of 6.8%. Excluding the impact of a $14 million income tax benefit due to the release of uncertain tax position reserves associated with the 2014 intercompany restructuring, our pro forma effective tax rate was 14% compared to 18.9% in the prior year quarter. The decrease is primarily due to intellectual property migration transaction.

資產負債表、現金流量表和稅收的一些亮點。本季度結束時，我們擁有大約 27 億美元的現金和有價證券，並且沒有債務。應收賬款環比增長至 5.24 億美元，但與第二季度銷售額一致，同比下降。由於我們增加數據供應的戰略、運動日益多樣化的產品線、產品發布的時機、與空運相比海運比例更高的過渡，庫存餘額環比增加。 2020 年第二季度，我們產生了 1.42 億美元的自由現金流，比上一季度增加了 6200 萬美元。 2020 年第二季度，我們報告的有效稅率為 6.8%。排除因釋放與 2014 年公司間重組相關的不確定稅務狀況準備金而帶來的 1400 萬美元所得稅收益的影響，我們的備考有效稅率為 14%，而去年同期為 18.9%。減少主要是由於知識產權遷移交易。

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

我們的正式發言到此結束。 May，你能打開問答熱線嗎？

(Operator Instructions) We have our first question from the line of Paul Chung.

（操作員說明）我們的第一個問題來自 Paul Chung。

So just on aviation. You mentioned a long recovery here, and you do have tough comps on ADS-B to end the year. But do you think we've kind of troughed in 2Q in your view? And are you seeing any kind of uptick in demand in July?

所以就航空而言。你在這裡提到了一個長期的複蘇，你在 ADS-B 上的表現確實很艱難。但是您認為我們在您看來第二季度已經觸底了嗎？您是否看到 7 月份的需求有所上升？

And then on the margins, it looks like your gross margins are pretty steady from the last quarter. What can you do kind of on the OpEx side in the near term to kind of shore up profitability there? And any onetime items kind of hitting aviation or mostly just lower revenue impact?

然後在利潤率上，看起來你們的毛利率與上個季度相比相當穩定。短期內您可以在 OpEx 方面做些什麼來提高那裡的盈利能力？還有任何一次性物品會影響航空業，或者主要是降低收入影響嗎？

Yes, Paul. Definitely, we've seen improvements in the sales across all the segments from April, including aviation. As I mentioned, it does take a little more time for that market to recover, but we're very optimistic about the future there. And definitely, those trends, I think, are continuing as we move into July, and we expect it to do so throughout the end of the year.

是的，保羅。當然，從 4 月份開始，我們已經看到所有部門的銷售額都有所改善，包括航空業。正如我所提到的，該市場確實需要更多時間才能恢復，但我們對那裡的未來非常樂觀。當然，我認為，隨著我們進入 7 月，這些趨勢將繼續下去，我們預計它會在今年年底持續下去。

In terms of margins, particularly the operating margin side of things, we do have -- because of the lower volumes, we do have some additional overhead expenses that are being absorbed in the business. But as trends continue to improve over time, we would expect those to wash out.

就利潤率而言，尤其是營業利潤率方面，我們確實有——由於銷量較低，我們確實有一些額外的間接費用被吸收到業務中。但隨著趨勢隨著時間的推移不斷改善，我們預計這些趨勢會被淘汰。

And then how big is the Autoland opportunity in your view and in kind of respect of impact on growth in margins?

那麼在您看來 Autoland 的機會有多大，以及對利潤率增長的影響有多大？

Yes. I think as a feature or as a category, it's an incremental adder. But what we see is that Autoland is a unique technology, differentiating for us that helps our systems stand out compared to others in the market. And so consequently, we see it as a significant differentiator for our entire cockpit system line.

是的。我認為作為一個功能或作為一個類別，它是一個增量加法器。但我們看到的是，Autoland 是一項獨特的技術，使我們脫穎而出，幫助我們的系統在市場上脫穎而出。因此，我們將其視為我們整個駕駛艙系統系列的重要差異化因素。

Okay. And then my last question, just on Tacx. What was the contribution in the quarter? And did you see some uptick in demand kind of given shelter-in-places around the globe? And any update on how the business is kind of scaling in the U.S.?

好的。然後是我的最後一個問題，關於 Tacx。該季度的貢獻是多少？您是否看到全球對特定避難所的需求有所上升？關於業務在美國如何擴展的任何更新？

Yes, we're including Tacx now within what we call the cycling category. So the results that we talked about, the increased interest in cycling is definitely Tacx is a part of that as well as our cycling head units. There was a lot of interest in these products and continues to be with a lot of people focusing on indoor activities, and the backlogs are very strong. So we're working to catch up with demand.

是的，我們現在將 Tacx 包括在我們所說的自行車類別中。因此，我們談到的結果是，對自行車的興趣增加肯定是 Tacx 以及我們的自行車頭部裝置的一部分。人們對這些產品很感興趣，並且繼續有很多人專注於室內活動，而且積壓量很大。所以我們正在努力趕上需求。

Next question is from the line of Nik Todorov.

下一個問題來自 Nik Todorov。

Congrats on great execution and results. Cliff, can you talk about the sustainability of -- especially on the consumer-facing markets, the fitness, the outdoors and maybe a little bit in the marine? Obviously, I think a lot of investors have expected the stimulus in North America and in part of Europe has drove a lot of money in the pockets of the consumers and that has helped spending in discretionary items. But how do you see that demand sustaining into the second half? And any kind of color you can give us on how you're thinking about the September quarter directionally? I know you're not guiding, but typically, seasonally has been down. Now obviously, it's a much more unique situation. So how are you thinking of sequential performance in the September quarter overall? That will be helpful.

祝賀出色的執行力和成果。克利夫，你能談談可持續性嗎——尤其是在面向消費者的市場、健身、戶外，也許還有一點海洋？顯然，我認為很多投資者都預料到北美和部分歐洲的刺激措施會為消費者帶來大量資金，這有助於在可自由支配的項目上進行支出。但您如何看待這種需求持續到下半年？關於您如何定向思考 9 月季度，您可以給我們提供任何顏色嗎？我知道你沒有指導，但通常季節性下降。現在顯然，這是一個更加獨特的情況。那麼，您如何看待整個 9 月季度的環比表現？那會很有幫助。

Yes. So the stimulus, I suppose, when people have more money, they do spend it, which is the intent of the program. I would say, though, that as we look forward, and there's uncertainty around what stimulus or how much it would be, we still see a lot of interest from retailers and excitement around things coming up in the second half. So we believe that with their indications, plus what we're hearing back from consumers that the product categories that we're in are the ones where people will spend their money.

是的。所以我想，當人們有更多的錢時，刺激計劃就會花掉，這就是該計劃的目的。不過，我要說的是，在我們展望未來的時候，關於刺激措施或刺激措施的規模存在不確定性，我們仍然看到零售商有很大的興趣，並對下半年即將發生的事情感到興奮。因此，我們相信根據他們的指示，加上我們從消費者那裡聽到的反饋，我們所處的產品類別是人們會花錢的產品類別。

In terms of September, we don't comment in terms of forward guidance. As I mentioned in my remarks, we did exit the quarter with strong momentum, and we're continuing to experience that. And so we're focusing on making sure that we can fill all of demand for the quarter and also for the back half of the year.

就 9 月而言，我們不就前瞻性指引發表評論。正如我在發言中提到的那樣，我們確實以強勁的勢頭退出了本季度，並且我們將繼續體驗這一點。因此，我們專注於確保我們能夠滿足本季度和下半年的所有需求。

Okay. And on the fitness gross margin, very strong given, I believe, you had a little bit more -- you were a little bit more aggressive on the discounting to drive consumer demand, which actually paid off. But when you talked about strength in cycling, are you guys seeing also, in addition to Tacx, maybe a little bit more contribution from your traditional cycling outdoor products, and that is a strong contributor to that gross margin, essentially staying flat year-over-year? Is that a right way to think about it?

好的。在健身毛利率方面，非常強勁，我相信，你有更多——你在打折方面更積極一些，以推動消費者需求，這實際上得到了回報。但是當你談到自行車的優勢時，你們是否也看到，除了 Tacx 之外，傳統的自行車戶外產品的貢獻可能更多一點，這是毛利率的重要貢獻者，基本上與去年同期持平-年？這是正確的思考方式嗎？

Well, there's always product mix that comes into the overall gross margin for a segment. We definitely saw increased sales of Tacx, which we've remarked in the past is at about at category average or slightly below. And then we also saw strong sales of other products, which are category average or above. So in general, it -- the extra products and Tacx certainly didn't hurt us. And the promotional activities were targeted and the mix of sales between retailers and online was such that we came out very well in the quarter.

好吧，總有產品組合會影響一個細分市場的整體毛利率。我們確實看到 Tacx 的銷售額有所增加，我們過去曾說過它大約處於類別平均水平或略低於平均水平。然後我們還看到了其他產品的強勁銷售，這些產品處於類別平均水平或以上。所以總的來說，額外的產品和 Tacx 肯定不會傷害我們。促銷活動是有針對性的，零售商和在線銷售的混合使我們在本季度表現出色。

Okay. And then moving to free cash flow. I mean, I think this is the second strongest free cash flow in the second quarter in a while. How should we think about the full year free cash flow or any thoughts on resuming the buyback?

好的。然後轉向自由現金流。我的意思是，我認為這是一段時間以來第二季度第二強勁的自由現金流。我們應該如何考慮全年的自由現金流或關於恢復回購的任何想法？

Yes. So as it relates to free cash flow in Q2, we saw there is some year-over-year improvement in some working capital items there. So as we saw the receivables receipts were higher year-over-year just due to the lower demand that we had in Q2 being lower from that standpoint. At this point in time, we're not providing any forward-looking guidance for free cash flow. And at this point in time, we do not have plans for any stock buyback.

是的。因此，由於它與第二季度的自由現金流有關，我們看到那裡的一些營運資本項目同比有所改善。因此，正如我們看到的那樣，應收賬款收入同比增加，只是因為從這個角度來看，我們在第二季度的需求較低。目前，我們沒有為自由現金流提供任何前瞻性指導。目前，我們沒有任何股票回購計劃。

Okay. And last question for me. I think, Cliff, you mentioned that you expect some new verticals to enter in auto. I wonder if that's on the OEM side. I know you have a lot of opportunities there or on the PND side. Any kind of -- what makes you most excited? I know you're generally not commenting on any future products, but any kind of hints will be helpful.

好的。最後一個問題問我。我想，克利夫，你提到你希望一些新的垂直領域進入汽車行業。我想知道這是否在 OEM 方面。我知道你在那里或在 PND 方面有很多機會。任何一種 - 什麼讓你最興奮？我知道您通常不會對任何未來產品發表評論，但任何類型的提示都會有所幫助。

Yes. I think we're moving fastest in innovative new products and new verticals on the consumer side across our business. And again, I get excited about all of the products that we're doing across the business. I think we have some great things coming. And I think we're very excited about those.

是的。我認為我們在整個業務的消費者方面在創新新產品和新垂直領域的發展最快。再一次，我對我們在整個業務中所做的所有產品感到興奮。我認為我們即將迎來一些偉大的事情。我認為我們對此感到非常興奮。

Next question is from the line of Ben Bollin.

下一個問題來自 Ben Bollin。

I wanted to start, could you provide a little bit of color about where you think channel inventory is? Cliff, you mentioned in the marine segment, the boat builders were idle and maybe constrained some supply or demand in the quarter. Could you address what you're seeing there? And then also in the broader wearables and any other categories where you're seeing maybe an imbalance in channel inventory out there?

我想開始，你能提供一些關於你認為渠道庫存在哪裡的顏色嗎？克利夫，你在海事部門提到過，造船商閒置，可能在本季度限制了一些供應或需求。你能談談你在那裡看到的嗎？然後在更廣泛的可穿戴設備和任何其他類別中，您看到渠道庫存可能不平衡嗎？

Yes. So I would say, in general, at the channel level, we think things are in balance or even possibly lean at this point. We watch very closely the real-time pull-through of our products through registrations that we have. And so consequently, we can definitely see the trends in the retail side of things and compare that to what we see in the channel and what we're shipping into the channel. So we're seeing a lot of strength on the consumer side of things. It's definitely not backing up in the channel. And then if anything, it's a little lean.

是的。所以我想說，總的來說，在渠道層面，我們認為目前情況是平衡的，甚至可能是傾斜的。我們通過我們的註冊密切關注我們產品的實時推送。因此，我們絕對可以看到零售方面的趨勢，並將其與我們在渠道中看到的以及我們正在運送到渠道中的內容進行比較。因此，我們在消費者方面看到了很多優勢。絕對不是在頻道裡備份。然後，如果有的話，它有點瘦。

From the boat builder side, they're not necessarily a source of inventory. They take products as they need them. But on the retail side of marine, sales have been very strong, and we've been working hard with our retail partners on the marine side to keep up with the demand.

從造船商的角度來看，它們不一定是庫存來源。他們根據需要獲取產品。但在海運零售方面，銷售一直非常強勁，我們一直在與海運方面的零售合作夥伴努力滿足需求。

Okay. Another question I had, Doug, could you share any updates on where you are from a factory perspective? I believe there's some new facilities associated with Tacx. And then you've talked a little bit about this BMW Tier 1 facility. Where are you on the ramp in these facilities? Any thoughts on the timing and the capital outlay associated with those through the course of this year into next year?

好的。我的另一個問題是，道格，你能從工廠的角度分享你所處位置的任何更新嗎？我相信有一些與 Tacx 相關的新設施。然後你談到了這個 BMW Tier 1 設施。您在這些設施的坡道上的哪個位置？對從今年到明年的時間和與這些相關的資本支出有什麼想法嗎？

Yes. So basically, I would say that, first, both of those facilities you mentioned, the Tacx manufacturing facility that we have in Europe as well as the OEM manufacturing facility in Europe, both of those are on plan. So we both -- we expect both of those to be up and running here later in the year. And actually, things are going well from those, and those will be basically -- especially from the Tacx standpoint, that really helped us out because of the increased demand we're seeing on our Tacx products to meet some of that demand.

是的。所以基本上，我想說的是，首先，你提到的這兩個設施，我們在歐洲擁有的 Tacx 製造設施以及在歐洲的 OEM 製造設施，都在計劃中。所以我們倆——我們預計這兩個項目都將在今年晚些時候在這裡啟動並運行。實際上，從這些方面來看，事情進展順利，而且基本上 - 特別是從 Tacx 的角度來看，這確實幫助了我們，因為我們看到對 Tacx 產品的需求增加，以滿足其中的一些需求。

At this point in time, I'm not providing any full forward-looking guidance on any CapEx.

目前，我還沒有就任何資本支出提供任何完整的前瞻性指導。

Okay. Last question is could you talk a little bit about how you are treating the broader COVID situation with employees? Where they're working? The mix of maybe at your facilities versus at their homes? How that's coming back online? And then any influence that's had on OpEx to date, maybe lower OpEx levels with less people, less travel, things like that? And then any thoughts on how permanent this might be looking forward?

好的。最後一個問題是，您能否談談您如何與員工一起處理更廣泛的 COVID 情況？他們在哪里工作？也許是在您的設施中還是在他們的家中？怎麼又上線了？然後是迄今為止對 OpEx 產生的任何影響，也許是用更少的人、更少的旅行來降低 OpEx 水平，諸如此類？然後有什麼關於這可能會持續多久的想法嗎？

Yes. So we have been very careful as we've gone through this process to try to maintain a very safe workplace. At the beginning, we had most of our people at home. Of course, as a production and distribution business, there are certain people that always have to be here. But for the most part, they were at home. We've since transitioned to about 1/3 of our associates being on site, and we've implemented protocols as we work here in our buildings across the world really for keeping safety. We're anticipating that this is a long-term deal. We're not rushing to get people back. But at the same time, we're also trying to focus on rotating people in and out of the facility to get them with their teammates to be able to interact and enjoy the dynamic environment that we have here at Garmin.

是的。因此，我們一直非常小心，因為我們已經完成了這個過程，試圖維持一個非常安全的工作場所。一開始，我們的大部分員工都在家裡。當然，作為生產和發行企業，總有一些人必須在場。但在大多數情況下，他們都在家裡。從那以後，我們已經過渡到大約 1/3 的員工在現場，並且我們已經實施了協議，因為我們在世界各地的建築物中工作，真正為了保持安全。我們預計這是一項長期協議。我們並不急於讓人們回來。但與此同時，我們也在努力將重點放在人員進出設施的輪換上，讓他們和他們的隊友能夠互動，享受我們在 Garmin 擁有的動態環境。

In terms of OpEx impact, it's difficult to quantify, but I would say there's increased pressure for expenses, of course, as we provided more benefits for our associates to be able to manage some of the difficulties they've had in their personal life with schools and family members and also concerns for their own health. But in general, we feel like that's manageable, and we're happy and we're very pleased actually with how we've been able to work through this crisis so far.

就運營支出的影響而言，很難量化，但我想說的是，費用壓力越來越大，當然，因為我們為我們的員工提供了更多福利，以便能夠解決他們在個人生活中遇到的一些困難學校和家庭成員，也擔心自己的健康。但總的來說，我們覺得這是可以控制的，我們很高興，我們對到目前為止我們如何度過這場危機感到非常高興。

Next question is from the line of Will Power.

下一個問題來自 Will Power。

I guess a couple of questions. First, maybe to come back to one of the earlier questions or remarks. As we move almost into August here from July, I mean, any reason to think that the trends you've seen in fitness, outdoor, marine shouldn't continue through Q3? I mean it sounds like you exited on a really strong note, and I assume that's continuing. Just want to kind of confirm that first.

我猜有幾個問題。首先，也許回到前面的一個問題或評論。當我們從 7 月幾乎進入 8 月時，我的意思是，有什麼理由認為您在健身、戶外、海洋方面看到的趨勢不應該持續到第三季度？我的意思是，這聽起來像是您以非常強烈的音調退出，而且我認為這種情況仍在繼續。只是想先確認一下。

Yes. As I said in my remarks, we definitely see continued opportunity through the year in those categories, particularly as people are very interested in health, wellness, fitness and outdoor activity and adventure. So those are very strong products, the fenix Solar, Instinct Solar is resonating very well. And of course, I think consumers are excited about what will happen in the back half as retailers start to get back to normal in terms of promotions and holidays.

是的。正如我在發言中所說，我們肯定會在這些類別中看到全年持續的機會，特別是因為人們對健康、保健、健身以及戶外活動和冒險非常感興趣。所以這些都是非常強大的產品，fenix Solar、Instinct Solar 引起了很好的共鳴。當然，我認為隨著零售商在促銷和假期方面開始恢復正常，消費者對下半年會發生什麼感到興奮。

Okay. And then second question, just thinking about supply chain, and I guess probably inventory, too. I mean anything you can call out on the supply chain front in terms of constraints or concerns in terms of components for products?

好的。然後是第二個問題，只是考慮供應鏈，我想也可能是庫存。我的意思是，就產品組件方面的限製或顧慮而言，您可以在供應鏈前端提出任何建議嗎？

And then the second piece is, as you look at the fitness category, in particular, I know a lot of retailers have struggled to keep as many bicycles in as they liked. There's been, as we know, strong retail demand on that front. Has that extended to your products? Are there any issues with respect to having enough inventory on hand for retailers on the cycling front?

然後第二點是，當你特別關注健身類別時，我知道很多零售商都在努力保持他們喜歡的自行車數量。正如我們所知，這方面的零售需求一直很強勁。這是否擴展到您的產品？在為自行車方面的零售商提供足夠的庫存方面是否存在任何問題？

Yes. So supply chain wise, I think the -- early in the pandemic, the focus was on supply chain continuity and maintaining the flow of components we needed for our business. As the pandemic evolved, of course, then everyone worried about the economic downturn. As things have come back, if anything, where we've had challenges in supply chain is keeping up with the demand. And that's part of what we've mentioned in terms of gross margin. The freight costs were higher as we work to get products in place for retailers and opportunities that needed them. Specifically around cycling, definitely that has been an area of constraint when it comes to product availability, especially in Tacx products. Again, we have a strong backlog of those. And also with cycling computers and those kinds of products, we are spending more on air freight as we try to get those into place at retailers. Cycling activities have been very popular with customers.

是的。因此，在供應鏈方面，我認為——在大流行初期，重點是供應鏈的連續性和維持我們業務所需的組件的流動。當然，隨著大流行病的發展，每個人都擔心經濟衰退。隨著事情的恢復，如果有的話，我們在供應鏈中遇到的挑戰正在跟上需求。這就是我們在毛利率方面提到的一部分。當我們努力為零售商和需要它們的機會提供產品時，運費更高。特別是圍繞自行車運動，這在產品可用性方面無疑是一個受限的領域，尤其是在 Tacx 產品中。同樣，我們積壓了大量這些。此外，對於騎行碼表和此類產品，我們在空運方面花費更多，因為我們試圖將這些產品投放到零售商處。騎行活動一直很受顧客歡迎。

Okay. And maybe just last question. As you look at the geographic breakdown, APAC a bit weaker than the other 2 regions. And that's a region that, I guess, returning -- I guess, should be returning to normal more quickly or should happen in Q2. Just to be interested in the color there, what's the mix difference maybe that's driving the relatively weaker performance in Asia Pac versus the other areas?

好的。也許只是最後一個問題。從地理細分來看，亞太地區比其他 2 個地區要弱一些。我想這是一個回歸的區域——我想應該更快地恢復正常或者應該在第二季度發生。只是對那裡的顏色感興趣，可能導致亞太地區相對於其他地區表現較弱的混合差異是什麼？

Yes. APAC has performed very differently from the Western markets. I think the pandemic and the concern over the pandemic was much stronger there than in some of the other regions, especially at first. And so they've taken longer to come back. Each country has its own story. But of course, China has been a significant factor, as well as larger countries like Thailand as well. So APAC kind of is a different narrative from the other geographies.

是的。亞太地區的表現與西方市場截然不同。我認為那裡的大流行病和對大流行病的擔憂比其他一些地區要強烈得多，尤其是在一開始。所以他們花了更長的時間才回來。每個國家都有自己的故事。但當然，中國一直是一個重要因素，泰國等大國也是如此。所以亞太地區與其他地區有點不同。

In Americas, I would say that aviation impacted us more there than the consumer side of things. So Americas' performance, I feel, was very good. And a similar story in Europe, although aviation's impact is lower there, but still was an impact. But in general, when you exclude that, I'm very pleased with the performance of those geographies.

在美洲，我想說航空業對我們的影響大於消費者方面的影響。所以我覺得美洲的表現非常好。與歐洲的情況類似，雖然航空業的影響在那裡較低，但仍然是一個影響。但總的來說，當你排除這一點時，我對這些地區的表現感到非常滿意。

Next in line is Charlie Anderson.

接下來是查理安德森。

Congrats on a great quarter. I wanted to start with aviation, Cliff. I recall last quarter, you had some comments about potentially in aviation you could see some benefit there because of routes cut from commercial aviation. I wonder maybe you could just update us on your long-term thoughts on aviation. Do you still think there'll be benefits created by the pandemic as it relates to the portions of the market you participate in? And then I've got a follow-up.

祝賀一個偉大的季度。我想從航空開始，克利夫。我記得上個季度，你對航空業的潛力發表了一些評論，因為商業航空的航線被削減，你可以在那裡看到一些好處。我想知道也許您可以向我們介紹您對航空業的長期想法。您是否仍然認為大流行病會帶來好處，因為它與您參與的市場部分有關？然後我有一個後續行動。

Yes. I think my view is still very much in line with that. In fact, I feel like, if anything, many are coming out in the industry supporting that view. We see some of the partners in the charter side of things see a significant uptick in the number of people who are inquiring about and proceeding with charter flights over the concern over exposure on airlines. And I think general aviation definitely has a slower timetable when it comes to reacting to these kinds of demand changes. It's still a very small market. But for sure, we're seeing anecdotal evidence of customers being more interested in investing in aircraft and in equipment.

是的。我覺得我的觀點還是非常符合的。事實上，我覺得，如果有的話，業內有很多人都支持這種觀點。我們看到包機方面的一些合作夥伴看到，由於擔心航空公司的風險，正在詢問和進行包機航班的人數顯著增加。而且我認為通用航空在應對這些需求變化方面肯定有更慢的時間表。這仍然是一個非常小的市場。但可以肯定的是，我們看到了客戶對投資飛機和設備更感興趣的軼事證據。

Okay. Great. And then for my follow-up, I was sort of curious about go-to-market strategy. I think there was a comment about garmin.com helping out. I wonder if you think that's a permanent change or shift in the trajectory of direct-to-consumer as a proportion of your business. Or that was more temporary because of some demand that retailers couldn't fill? And then I'm also curious about advertising spending. It was down a decent amount from a year ago, and you also got some leverage there. I wonder if there's a permanent change in maybe needing less advertising. Or that was just a function of sort of some of the things that were happening in the quarter?

好的。偉大的。然後對於我的後續行動，我對進入市場的策略有點好奇。我認為有關於 garmin.com 幫助的評論。我想知道您是否認為直接面向消費者在您的業務中所佔比例是永久性的變化或轉變。或者這只是暫時的，因為零售商無法滿足某些需求？然後我也對廣告支出感到好奇。它比一年前下降了很多，而且你在那裡也有一些影響力。我想知道可能需要更少的廣告是否有永久性的變化。或者這只是本季度發生的某些事情的結果？

Yes. So in terms of go-to-market on the website side of things, I do see that, that shift would be longer term in our business. And again, we have a mix of all kinds of retail and product outlet situation. So we work with all of them, but we definitely see that customers are gravitating towards online purchases, whether it's through a partner or through Garmin. And we did see a significant uptick, as we mentioned in our own web sales, which we view as a positive development.

是的。因此，就網站方面的上市而言，我確實看到，這種轉變在我們的業務中將是長期的。再一次，我們混合了各種零售和產品銷售情況。所以我們與他們所有人合作，但我們確實看到客戶越來越傾向於在線購買，無論是通過合作夥伴還是通過 Garmin。正如我們在自己的網絡銷售中提到的那樣，我們確實看到了顯著的增長，我們認為這是一個積極的發展。

In terms of advertising and what the dynamics are there, there are really 2 things. There was certainly impact because of the pandemic and everyone just pulling back because for a while, everyone was glued to news channels and websites, staying indoors and not doing much. But as things evolve, that quickly changed. And so we became very strategic in how we spent our advertising money, focusing on digital and social channels as well as co-op opportunities with retailers. I would see that continuing as well as we go forward, as the situation remains very dynamic and retailers' plans also are very dynamic.

就廣告和那裡的動態而言，確實有兩件事。大流行肯定會產生影響，每個人都退縮了，因為有一段時間，每個人都盯著新聞頻道和網站，呆在室內，沒有做太多事情。但隨著事情的發展，這種情況很快發生了變化。因此，我們在如何花費廣告資金方面變得非常具有戰略意義，專注於數字和社交渠道以及與零售商的合作機會。我會看到我們繼續前進，因為情況仍然非常多變，零售商的計劃也非常多變。

Next question is from the line of Ivan Feinseth.

下一個問題來自 Ivan Feinseth。

Congratulations on another great quarter. Congratulations on the Firstbeat acquisition. Now some of the other companies that use the technology from Firstbeat that -- do they have like contracts to license the technology? Are you going to continue to license technology to other firms? Or what is your view on licensing some of your technology because you also have great technology in other areas. And have you ever licensed technology to other companies before?

祝賀又一個偉大的季度。祝賀 Firstbeat 被收購。現在，其他一些使用 Firstbeat 技術的公司——他們是否有類似的合同來許可該技術？你會繼續向其他公司授權技術嗎？或者你對許可你的一些技術有什麼看法，因為你在其他領域也有很棒的技術。您以前是否曾將技術授權給其他公司？

Yes. Firstbeat has a list of their own customers. Of course, Garmin is one of those and the major one. They will continue those relationships for the most part. And I think there could be various adjustments on different priorities that they have. They have a lot of activity with research and different things, of course. But in general, I would see that the technology would continue to be evolved and innovative for the benefit of customers.

是的。 Firstbeat 有一份他們自己的客戶名單。當然，Garmin 是其中之一，也是主要的。他們將在很大程度上繼續這些關係。我認為可以根據他們擁有的不同優先級進行各種調整。當然，他們在研究和其他方面有很多活動。但總的來說，我會看到該技術將繼續發展和創新，以造福於客戶。

Right. Then since Autoland is such an innovative and incredible product, and do you see a way of leveraging that innovation into automotive OEM especially in some autonomous vehicle technology? I don't know if you saw that. Ford announced a new partnership with Mobileye. And I know you have a partnership with Ford with the Mustang Mach-E V, as well as, let's say, working not only with the auto manufacturers, but some of the tech manufacturers like Mobileye or NVIDIA, which makes the drive computer, or even Qualcomm that has a number of autonomous vehicle computers coming out.

正確的。那麼既然 Autoland 是一款如此創新和令人難以置信的產品，您是否看到了一種將這種創新用於汽車 OEM 的方法，尤其是在某些自動駕駛汽車技術中？我不知道你是否看到了。福特宣布與 Mobileye 建立新的合作夥伴關係。我知道你們與福特建立了合作夥伴關係，推出了 Mustang Mach-E V，而且，比方說，不僅與汽車製造商合作，還與一些技術製造商合作，例如製造驅動計算機的 Mobileye 或 NVIDIA，或者就連高通也有多款自動駕駛汽車電腦問世。

I would say that Autoland is solving a unique problem for the aviation market, and there's a lot of considerations in the technology around how airplanes operate in the airspace system and the nuances of airports and landing and communication and all of those things. So I think it's very specific there. Of course, there's fundamental control technologies that are probably extensible to other areas. But specifically for auto, that problem is much different to solve, and I wouldn't see a lot of overlap there. We do partner with others in the industry as well on some of our OEM products, but we would see ourselves mostly there serving as a component or a technology provider as part of the bigger system.

我想說 Autoland 正在為航空市場解決一個獨特的問題，圍繞飛機如何在空域系統中運行以及機場、著陸和通信的細微差別以及所有這些事情，在技術上有很多考慮因素。所以我認為那裡非常具體。當然，有一些基本的控制技術可能可以擴展到其他領域。但特別是對於汽車而言，這個問題的解決方式大不相同，我看不出有太多重疊之處。我們確實與業內其他公司合作，在我們的一些 OEM 產品上進行合作，但我們主要將自己視為更大系統的組件或技術提供商。

Okay. What about extending the solar screen technology to other handhelds, like the inReach with -- that would be another great item to have solar charging.

好的。將太陽能屏幕技術擴展到其他手持設備怎麼樣，比如 inReach with - 這將是另一個擁有太陽能充電的好項目。

Yes. Solar is a great technology for us that I'm really super excited about, and it has a lot more applications that we can apply it to across our product lines in several segments.

是的。太陽能對我們來說是一項偉大的技術，我真的非常興奮，它有更多的應用程序，我們可以將它應用到我們多個細分市場的產品線中。

And then without giving specific products and categories, can you give us like an indication because you speak a lot about new innovative products to come in different categories. Could you give us some idea of these categories and products?

然後，在不提供具體產品和類別的情況下，您能否給我們一個指示，因為您談到了很多關於不同類別的新創新產品。你能給我們一些關於這些類別和產品的想法嗎？

Well, I think Garmin is all about adventure and activity. And so these new products will take us deeper into those kinds of spaces, market spaces and categories.

好吧，我認為 Garmin 就是關於冒險和活動的。因此，這些新產品將帶我們更深入地了解這些類型的空間、市場空間和類別。

Public, for example, one of the -- some of the trends from the pandemic, RV sales are on fire. Yesterday, Polaris said they saw unprecedented demand for ATVs and personal watercraft and bikes. Do you see opportunities that -- are we going to see new products in those categories?

公共，例如，其中之一——大流行的一些趨勢，房車銷售火爆。昨天，Polaris 表示，他們看到了對全地形車、個人船隻和自行車的前所未有的需求。您是否看到機會 - 我們會在這些類別中看到新產品嗎？

Yes, we see opportunities across all those kinds of specialty vehicles, and we're working hard to appeal to a new group of customers that are discovering those kind of activities.

是的，我們看到了所有這些特種車輛的機會，我們正在努力吸引正在發現這些活動的新客戶群。

Very good. Congratulations again.

非常好。再次祝賀。

Next question is from the line of Erik Woodring.

下一個問題來自 Erik Woodring。

Congrats on the quarter. I'm just following up on a few questions from earlier. So first, just to follow-up on Ivan's question there. From a design standpoint, are there any inhibitors to you in including solar technology in, for example, wearables products? I guess we'll start there and I have a follow-up.

祝賀這個季度。我只是在跟進之前的幾個問題。首先，只是跟進 Ivan 的問題。從設計的角度來看，是否有任何因素阻礙您將太陽能技術應用到可穿戴產品中？我想我們會從那裡開始，我有一個後續行動。

Yes. Actually, Erik, the solar components now are on our wearables. So the fenix line, the Instinct line, the tactix as well as the quatix, those are all our smartwatch wearables, and that's where we targeted that technology first.

是的。實際上，埃里克，太陽能組件現在就在我們的可穿戴設備上。所以 fenix 系列、Instinct 系列、tactix 和 quatix，這些都是我們的智能手錶可穿戴設備，這就是我們首先針對該技術的地方。

Right. I meant more on the fitness side, so the Forerunner, any of the vívos, anything on that end?

正確的。我的意思是在健身方面更多，所以先行者，任何 vívos，在這方面的任何東西？

Yes. There's no technical limitation to where it can go. I think it's best suited in environments where the devices are already naturally low-power designs because solar technology, while it's exciting, it's still very challenging to collect enough energy from the sun to do some of the things that the more advanced wearables do. But in general, it will continue to evolve, we'll continue to improve it, improve the efficiency and make it a real differentiator for Garmin.

是的。它可以去哪裡沒有技術限制。我認為它最適合設備已經自然低功耗設計的環境，因為太陽能技術雖然令人興奮，但從太陽收集足夠的能量來完成更先進的可穿戴設備所做的一些事情仍然非常具有挑戰性。但總的來說，它會繼續發展，我們會繼續改進它，提高效率，讓它成為 Garmin 真正的差異化因素。

Awesome. Very helpful. And then just as a follow-up. Congrats on the Piper M600 Autoland win. I'm just curious, from a high level, we know that in 2008, 2009, aviation was fairly weak. Would just love to hear what you think -- and weak for an extended period of time. Just would love to hear what you think about aviation today during the current crisis relative to that time? And any differences you see that you can compare and contrast?

驚人的。很有幫助。然後作為後續行動。祝賀 Piper M600 Autoland 獲勝。我只是很好奇，從高層來看，我們知道在 2008 年和 2009 年，航空業相當疲軟。很想听聽你的想法——而且很長一段時間都很虛弱。只是想听聽您在當前危機期間相對於當時對航空業的看法？您看到任何可以比較和對比的差異嗎？

And then as a follow-up to that is also just what inning you think we're in with ADS-B? Obviously, the mandate has passed, but if there's any kind of juice left in that tank?

然後作為後續行動，您認為我們在 ADS-B 中處於哪一局？顯然，授權已經過去了，但是那個罐子裡是否還剩下任何果汁？

Yes. So I would say the similarities to 2008 and '09 with regard to aviation business performance, in both cases, there was an economic shock that impacted the segment. But I think that's probably where the similarity ends. Back in 2008 and 2009, there was a significant oversupply of every kind of business jet. And so as the financial crisis developed and companies were pulling back, individuals we're pulling back, there's a lot of used aircraft on the market, which impacted valuations. And even to this day, there's probably still impact from that more than 10 years on. And I would say that this time, though, one of the positive things that we see is that activity in the light jet side of things, probably light and up to light medium jet is still very strong. And as I mentioned in the earlier question that interest around charter and ownership in those class of aircraft is remaining firm. So we're excited about that. And we think even in the small aircraft side of things, there's more potential as people consider traveling by private aircraft as opposed to commercial aircraft.

是的。因此，我想說的是 2008 年和 09 年航空業務表現的相似之處，在這兩種情況下，經濟衝擊都影響了該部門。但我認為這可能是相似之處的終結。早在 2008 年和 2009 年，各種公務機都嚴重供過於求。因此，隨著金融危機的發展，公司撤退，我們撤退個人，市場上有很多二手飛機，這影響了估值。甚至到今天，10 多年後的影響可能仍然存在。不過，我要說的是，這一次，我們看到的一件積極的事情是，輕型噴氣機方面的活動，可能是輕型和輕型中型噴氣機仍然非常強勁。正如我在之前的問題中提到的那樣，對這類飛機的包機和所有權的興趣依然堅定。所以我們對此感到興奮。我們認為，即使在小型飛機方面，也有更多的潛力，因為人們考慮乘坐私人飛機而不是商用飛機旅行。

And then on your question with ADS-B, what inning are we in? We -- actually we're in the extra innings. So we felt like ADS-B performed in terms of overall market adaptation, much better than anyone predicted at the very beginning stages. And as we go forward, it doesn't mean that we sell 0 ADS-B products. We'll continue to sell ADS-B products to new aircraft. Of course, they all need that. And also as in the aftermarket, we expect that competitive systems will be upgraded. That's a market opportunity for us to take share. And of course, products, repairs and things that happen that require new systems. So it will be just an ongoing business going forward.

然後關於你關於 ADS-B 的問題，我們在哪一局？我們——實際上我們在加時賽中。所以我們覺得 ADS-B 在整體市場適應方面的表現，比任何人在最開始階段預測的要好得多。在我們前進的過程中，這並不意味著我們銷售 0 個 ADS-B 產品。我們將繼續向新飛機銷售 ADS-B 產品。當然，他們都需要。與售後市場一樣，我們預計競爭系統將得到升級。這是我們分享的市場機會。當然，還有需要新系統的產品、維修和發生的事情。因此，這將只是一項持續的業務。

Awesome. And if I could just sneak one last one in for Doug. Just in the past, you've commented on the trajectory of different OpEx lines. Just wondering if you can provide any color there. But that's it for me.

驚人的。如果我能為 Doug 偷偷拿最後一張。就在過去，您曾評論過不同運營支出線的軌跡。只是想知道您是否可以在那裡提供任何顏色。但對我來說就是這樣。

Yes. Regarding operating expense in general, we'll continue to make investments in our own business really to grow that. At this time, we're not able to provide any detailed forward-looking guidance on OpEx, but we'll continue to make investments appropriate to drive our business.

是的。關於一般的運營費用，我們將繼續對我們自己的業務進行投資，以真正實現增長。目前，我們無法就 OpEx 提供任何詳細的前瞻性指導，但我們將繼續進行適當的投資以推動我們的業務發展。

Congrats on the quarter.

祝賀這個季度。

At this time, I would like to turn it back to the speakers for any further comments.

在這個時候，我想把它轉回給發言者以徵求任何進一步的意見。

I'd just like to thank everyone for joining the call today. Doug and I are available for callbacks. Have a great day.

我只想感謝大家今天加入電話會議。道格和我可以回電。祝你有美好的一天。

Ladies and gentlemen, this concludes today's conference. Thank you all for your participation, and have a wonderful day. You may all disconnect.

女士們，先生們，今天的會議到此結束。感謝大家的參與，祝您度過美好的一天。你們都可以斷開連接。