IPG Photonics Corp (IPGP) 2023 Q4 法說會逐字稿

Good morning, and welcome to IPG Photonics Fourth Quarter 2023 Conference Call. Today's call is being recorded and webcast. At this time, I'd like to turn the call over to Eugene Fedotoff, Senior Director of Investor Relations for introductions. Please go ahead.

早上好，歡迎參加 IPG Photonics 2023 年第四季電話會議。今天的通話正在錄音並進行網路直播。現在，我想將電話轉給投資者關係高級總監 Eugene Fedotoff 進行介紹。請繼續。

Thank you, Kieran, and good morning, everyone. With me today is IPG Photonics CEO, Dr. Eugene Scherbakov; and Senior Vice President and CFO, Tim Mammen.

謝謝基蘭，大家早安。今天與我在一起的是 IPG Photonics 執行長 Eugene Scherbakov 博士；以及資深副總裁兼財務長 Tim Mammen。

Let me remind you that statements made during the course of this call that discuss management's or the company's intentions, expectations or predictions of the future are forward-looking statements. These forward-looking statements are subject to risks and uncertainties that could cause the company's actual results to differ materially from those projected in such forward-looking statements. These risks and uncertainties are detailed in our Form 10-K for the period ended December 31, 2023, and our reports on file with the Securities and Exchange Commission. Copies of these filings may be obtained by visiting the Investors section of IPG's website or the SEC's website.

讓我提醒您，在本次電話會議期間發表的討論管理層或公司的意圖、期望或對未來的預測的聲明均為前瞻性聲明。這些前瞻性陳述存在風險和不確定性，可能導致公司的實際結果與此類前瞻性陳述中的預測有重大差異。這些風險和不確定性詳見我們截至 2023 年 12 月 31 日期間的 10-K 表格以及我們向美國證券交易委員會提交的報告。可透過造訪 IPG 網站或 SEC 網站的投資者部分取得這些文件的副本。

Any forward-looking statements made on this call are the company's expectations or predictions as of today February 13, 2024 only. The company assumes no obligation to publicly release any updates or revisions to any such statements. For additional details on our reported results, please refer to the earnings press release, earnings call presentation and the Excel-based financial data workbook posted on our Investor Relations website. We will post these prepared remarks on our website following the completion of this call.

本次電話會議中所做的任何前瞻性陳述僅是本公司截至 2024 年 2 月 13 日的預期或預測。本公司不承擔公開發布任何此類聲明的任何更新或修訂的義務。有關我們報告的結果的更多詳細信息，請參閱我們的投資者關係網站上發布的收益新聞稿、收益電話會議演示和基於 Excel 的財務數據工作簿。本次電話會議結束後，我們將在我們的網站上發布這些準備好的評論。

With that, I'll now turn the call over to Eugene Scherbakov.

現在，我將把電話轉給尤金·謝爾巴科夫 (Eugene Scherbakov)。

Good morning, everyone, and thank you for joining us today. We are pleased to report that fourth quarter revenue came in the top of our guidance. We saw growth in multiple areas, including welding, cleaning, 3D printing and medical applications. That showed success in our strategy to diversify revenue away from cutting and reduce the amount of sales from China.

大家早安，感謝您今天加入我們。我們很高興地報告，第四季度的收入超出了我們的指導。我們看到了多個領域的成長，包括焊接、清潔、3D 列印和醫療應用。這表明我們的收入多元化策略取得了成功，不再削減和減少來自中國的銷售額。

We remain focused on our strategy to displace legacy technology and processes with highly efficient and environmentally beneficial fiber lasers and laser-based technologies. Revenue in our emerging growth product improved sequentially and accounting for 46% of our total sales. driven by growth in handheld welding, beam delivery and medical products.

我們仍然專注於我們的策略，即用高效、環保的光纖雷射和基於雷射的技術取代傳統技術和製程。我們的新興成長產品的營收季增，占我們總銷售額的 46%。受到手持式焊接、光束傳輸和醫療產品成長的推動。

However, uncertainty in macroeconomic conditions continue to wait on sales and many general industrial applications. And some of our large OEM customers around the world, who are managing inventories and (inaudible) purchasing in the quarter. Also we saw a soft demand for our lasers and e-mobility in China and solar cell manufacturing applications.

然而，宏觀經濟狀況的不確定性繼續等待銷售和許多一般工業應用。還有我們世界各地的一些大型 OEM 客戶，他們在本季管理庫存和（聽不清楚）採購。我們也看到中國對我們的雷射和電動車以及太陽能電池製造應用的需求疲軟。

Welding sales rebounding strongly in the quarter with growth in North America, more than offsetting lower revenue in China. Laser adoption is growing in general industrial and automotive applications and not just in e-mobility. The increase in welding this quarter was driven by higher sales in our handheld laser welder and growing adoption of our real-time weld measuring tool, which has become the industrial standard for automating process, monitoring and quality control.

隨著北美地區的成長，本季焊接銷售額強勁反彈，足以抵銷中國收入的下降。雷射在一般工業和汽車應用中的採用正在不斷增長，而不僅僅是在電動車領域。本季焊接量的成長是由於我們的手持式雷射焊接機銷量的增加以及我們的即時焊接測量工具的日益普及所推動的，該工具已成為自動化過程、監控和品質控制的工業標準。

Customer understand a significant value proposition of real-time welding process monitoring, which can significantly reduce scrap and improve yields. We are also seeing the high sales of integrated laser building systems and complete solution for higher speed automating laser welding, which includes laser scanner, [lesion] and controllers that are easy to integrate in the manufacturing process.

客戶了解即時焊接過程監控的重要價值主張，它可以顯著減少廢品並提高產量。我們還看到整合雷射建造系統和高速自動化雷射焊接完整解決方案的高銷量，其中包括易於整合到製造過程中的雷射掃描器、[病變]和控制器。

I'm happy to report another quarter of strong growth in handheld laser welder. LightWELD sales beneficial from rollout of the tool in Europe and increased 50% in 2023. We're expecting that the adoption will continue this year and are excited about the new partnership with Miller Electric to promote laser welding among the large network of MIG and TIG welders. Miller Electric is a leading worldwide manufacturing of arc welding products. We believe that most welding application can be addressed by laser, including the handheld market and there is a tremendous productivity improvement that lasers enable.

我很高興地報告手持式雷射焊接機又一個季度強勁成長。 LightWELD 的銷售額受益於該工具在歐洲的推出，並在2023 年增長了50%。我們預計今年將繼續採用該工具，並對與Miller Electric 建立新的合作夥伴關係以在MIG 和TIG 大型網路中推廣雷射焊接感到興奮焊工。 Miller Electric 是全球領先的弧焊產品製造商。我們相信大多數焊接應用都可以透過雷射來解決，包括手持式市場，雷射可以大大提高生產率。

Welding is a large addressable market for our lasers, and we are in the initial stage of developing it. Indicative of success, we are generating in welding IPG largest customer. Larger applications increased 13% year-over-year and accounting for 36% of our total revenue in 2023. IPG remains well positioned in e-mobility market, providing welding, cleaning and cutting and now drying solution for most major EV battery manufacturers around the globe.

焊接對於我們的雷射來說是一個巨大的潛在市場，而我們正處於開發它的初始階段。成功的標誌是，我們正在成為焊接領域 IPG 最大的客戶。大型應用年增 13%，佔 2023 年總收入的 36%。IPG 在電動車市場中保持領先地位，為全球大多數主要電動汽車電池製造商提供焊接、清潔和切割以及乾燥解決方案地球。

While our e-mobility sales were negatively impacted by slowdown in new capacity additions in China. We saw an increase in sales in North America, Japan and Korea during the quarter. Overcapacity in battery production in China after a strong investment cycle in 2021 and 2022, continue to provide a short-term drag on our growth. But we remain optimistic in the future the revenue for this important applications as a new electric vehicle sales continue to grow us worldwide.

儘管我們的電動車銷售受到中國新增產能放緩的負面影響。本季我們看到北美、日本和韓國的銷售額有所成長。經過 2021 年和 2022 年的強勁投資週期後，中國電池生產產能過剩，繼續對我們的成長造成短期拖累。但我們對未來這項重要應用的營收保持樂觀，因為新的電動車銷量在全球持續成長。

We are also looking to increase our expansion by adding more adjacent laser technology around our current offering to the further penetrator e-mobility applications. We successfully shipped the first order of laser drying solution for battery for all manufacturing. The solution replaces a less efficient infrared bulbs and environmental unfriendly gas-fired furnaces and can significantly increase drying speed and reduce energy costs for our customers.

我們還希望透過圍繞我們目前的產品添加更多相鄰雷射技術來擴大我們的擴張，以進一步滲透電動車應用。我們成功交付了第一筆用於所有製造的電池雷射乾燥解決方案訂單。此解決方案取代了效率較低的紅外線燈泡和對環境不友善的燃氣爐，可顯著提高乾燥速度並降低客戶的能源成本。

For the full year, our EV sales increased modestly to the new record level and accounting over 20% of total revenue. Traditionally, we are looking at new growth opportunity in laser cleaning market. Laser cleaning solutions, while still a small contributor in our overall sales have been growing at high rate and there is an increased interest in the market to replace traditional cleaning process, which uses abrasive materials and chemicals.

全年來看，我們的電動車銷量小幅成長，創下新紀錄，佔總收入的 20% 以上。傳統上，我們正​​在尋找雷射清潔市場的新成長機會。雷射清潔解決方案雖然在我們的整體銷售額中仍佔很小的份額，但一直在高速增長，並且市場對取代使用研磨材料和化學品的傳統清潔工藝的興趣日益濃厚。

Whether it is paint or rust removal, our laser can do the work quicker, more safely as operator and with less harm to the environment. Finally, our medical business delivered strong results in the fourth quarter. Full year revenue grew slightly to a new record level despite some destocking by large customer in the second quarter.

無論是油漆還是除鏽，我們的雷射都可以更快、更安全地完成工作，並且對環境的危害更小。最後，我們的醫療業務在第四季度取得了強勁的業績。儘管大客戶在第二季進行了一些去庫存，但全年收入仍小幅增長至新紀錄水平。

We have benefited from growth in single-use fibers and some additional demand in aesthetic applications. We believe that there a large installed base of old laser technology that can be replaced with fine lasers over time. As you can see from our guidance, which you will be covered by team later in this call, we are looking at slower step to the year as the industrial demand remains weak.

我們受益於一次性纖維的增長和美學應用的一些額外需求。我們相信，隨著時間的推移，舊雷射技術的大量安裝基礎可以被精細雷射取代。正如您從我們的指導中看到的那樣，由於工業需求仍然疲軟，我們預計今年的步伐會放緩。

However, we are focusing on what we can control to offset these headwinds. We are targeting a number of large addressable markets, where fiber laser can replace existing laser or non-laser technology by taking advantage of several new trends, including the automation, increase in efficiency and reducing the environment impact.

然而，我們正在關注我們可以控制的因素來抵消這些不利因素。我們的目標是許多大型潛在市場，在這些市場中，光纖雷射可以利用自動化、提高效率和減少環境影響等多種新趨勢來取代現有的雷射或非雷射技術。

We expect that these trends to continue and help diversify our revenue. We also are focused on operational improvement such as lower cost and reducing the inventories in 2024. We analyze them as the future growth and continue to maintain strong balance sheet. Our cash flow generation remains strong, and benefited from inventory management. And I would like to thank you our employees for their contribution to 2024. And we will turn the call over to Tim to discuss financial highlights in the quarter.

我們預計這些趨勢將持續下去並有助於我們的收入多元化。我們也專注於營運改進，例如 2024 年降低成本和減少庫存。我們將其分析為未來成長並繼續保持強勁的資產負債表。我們的現金流生成依然強勁，並受益於庫存管理。我要感謝我們的員工為 2024 年所做的貢獻。我們將把電話轉給蒂姆，討論本季的財務亮點。

Thank you, Eugene, and good morning, everyone. My comments generally will follow the earnings call presentation, which is available on our Investor Relations website.

謝謝尤金，大家早安。我的評論通常會在收益電話會議演示之後發表，該演示可以在我們的投資者關係網站上找到。

I will start with the financial review on Slide 4. Revenue in the fourth quarter was $299 million, down 10% year-over-year, but came in at the top of our guidance. Revenue from materials processing applications decreased 12% year-over-year due to lower general industrial demand, which impacted revenue in cutting applications, partially offset by growth in welding cleaning and 3D printing.

我將從幻燈片 4 的財務回顧開始。第四季的收入為 2.99 億美元，年減 10%，但處於我們指導的最高位置。由於一般工業需求下降，材料加工應用的收入年減 12%，這影響了切割應用的收入，但部分被焊接清潔和 3D 列印的成長所抵消。

Revenue in other applications increased 4%, driven by the strength in medical. GAAP gross margin was 38.2% an increase from last year due to a significant decrease in inventory provision and other charges related to our Russian operations that impacted results in the fourth quarter of 2022. You can find details of these items in the financial tables of the press release.

在醫療實力的推動下，其他應用的收入成長了 4%。由於庫存撥備和與俄羅斯業務相關的其他費用大幅減少，影響了2022 年第四季的業績，公認會計原則毛利率較去年增長了38.2%。您可以在2022 年第四季的財務表中找到這些項目的詳細資訊。新聞稿。

Additionally, gross margin benefited from lower shipping costs and tariffs, but these benefits were mostly offset by lower absorption of manufacturing costs and slightly higher cost of products sold. As we focused on reduction of inventory, we estimate that the impact of production shutdowns to work down our inventories reduced manufacturing cost absorption and reduced gross margin by approximately 4 percentage points in the fourth quarter as compared to the third quarter of 2023.

此外，毛利率受益於較低的運輸成本和關稅，但這些收益大部分被製造成本吸收較低和銷售產品成本略高所抵銷。由於我們專注於減少庫存，因此我們估計，與 2023 年第三季相比，停產以減少庫存的影響減少了製造成本的吸收，並使第四季度的毛利率下降了約 4 個百分點。

Additionally, both revenue and gross margin were negatively impacted by foreign currency translation. If exchange rates relative to the U.S. dollar had been the same as 1 year ago, we would have expected revenue to be $5 million higher and gross profit to be $4 million higher. Operating expenses came in above our guidance range, driven by continued investments in R&D, and sales organization to support our strategic initiatives in new applications.

此外，收入和毛利率都受到外幣換算的負面影響。如果相對於美元的匯率與 1 年前相同，我們預計收入將增加 500 萬美元，毛利將增加 400 萬美元。由於對研發和銷售組織的持續投資，以支持我們在新應用中的策略舉措，營運費用超出了我們的指導範圍。

In 2023, we created numerous new and important sales roles globally that we expect will drive our sales, deepen customer relationships for the future. We also had higher stock-based compensation and some onetime expenses that increased operating costs in the quarter. Foreign currency transaction loss related to remeasuring foreign currency assets and liabilities to period-end exchange rates had a minor negative impact on operating expenses of $0.4 million or $0.01 per diluted share in the quarter.

2023 年，我們在全球設立了許多新的重要銷售職位，我們預計這些職位將推動我們的銷售，加深未來的客戶關係。我們的股票薪酬和一些一次性費用也增加了本季的營運成本。與根據期末匯率重新計量外幣資產和負債相關的外幣交易損失對本季營運費用產生了 40 萬美元或攤薄後每股 0.01 美元的輕微負面影響。

GAAP operating income was $29 million and operating margin was 9.6%. Net income in the quarter was $41 million or $0.89 per diluted share. The effective tax rate in the quarter was 2% and benefited from certain discrete items, including closing tax audits.

GAAP 營業收入為 2,900 萬美元，營業利潤率為 9.6%。本季淨利為 4,100 萬美元，或攤薄後每股收益 0.89 美元。本季的有效稅率為 2%，受益於某些離散項目，包括期末稅務審計。

Moving to Slide 5. Sales of high power [QCW] lasers decreased 19% due to lower sales and cutting applications in China and Europe as a result of lower industrial demand and OEM customers working down inventories as well as increased competition from Chinese players in cutting applications. Sales of ultra high-power lasers above 6 kilowatts represented 48% of total high-power CW laser sales.

轉到幻燈片 5。由於工業需求下降和 OEM 客戶減少庫存以及中國切割企業的競爭加劇，中國和歐洲的銷售和切割應用下降，高功率 [QCW] 雷射的銷售額下降了 19%應用程式。 6千瓦以上超高功率雷射銷售佔高功率連續雷射總銷量的48%。

Pulsed laser sales decreased 40% year-over-year due to lower demand in solar cell manufacturing and battery foil cutting applications driven by reduced industry demand. System sales decreased 1% year-over-year with strong growth in the LightWELD, offset by lower sales in other laser systems. Medium-power laser sales increased 5%, while QCW laser sales were up 6% year-over-year, driven by higher sales to consumer electronics, 3D printing and e-mobility applications. Other product sales were up meaningfully on strong growth in medical applications and beam delivery.

由於產業需求減少導致太陽能電池製造和電池箔切割應用需求下降，脈衝雷射銷售額較去年同期下降 40%。由於 LightWELD 的強勁成長，系統銷售額較去年同期下降 1%，但被其他雷射系統銷售額的下降所抵消。受消費性電子產品、3D 列印和電動車應用銷售額增加的推動，中功率雷射銷售額較去年同期成長 5%，而 QCW 雷射銷售額則較去年同期成長 6%。由於醫療應用和光束傳輸的強勁成長，其他產品銷售也出現了顯著成長。

Looking at our performance by region on Slide 6. Revenue in North America decreased 3% due to lower demand in cutting applications, which were partially offset by higher sales in welding, mostly driven by strong revenue in e-mobility applications. In the face of a widespread economic slowdown in Europe, sales increased 1% as the region continued to perform better than expected, with higher sales across most applications, except for cutting.

看看我們在幻燈片6 上按地區劃分的業績。由於切割應用的需求下降，北美地區的收入下降了3%，但焊接銷售額的增加部分抵消了這一影響，而焊接銷售額的增長主要是由電動車應用的強勁收入推動的。面對歐洲普遍的經濟放緩，該地區的表現繼續好於預期，銷售額增長了 1%，除切割外，大多數應用領域的銷售額均有所增長。

Revenue in China decreased 25% year-over-year due to lower demand in general industrial markets, continued competitive pressure in cutting applications and reduced investments in electric vehicle battery production. China represented 24% of total sales in the quarter, its lowest level in the last 10 years.

由於一般工業市場的需求下降、削減應用的持續競爭壓力以及電動汽車電池生產投資的減少，中國地區的收入較去年同期下降25%。中國佔本季總銷售額的 24%，為過去 10 年來的最低水準。

Moving to a summary of our balance sheet on Slide 7. We ended the quarter with cash, cash equivalents and short-term investments of $1.2 billion and no debt. Cash flow generation remained strong with cash provided by operations of $106 million in the fourth quarter. Our CapEx was $25 million in the quarter and $110 million for the full year. Net of asset divestitures CapEx was $79 million.

接下來是投影片 7 上我們的資產負債表摘要。本季結束時，我們的現金、現金等價物和短期投資為 12 億美元，沒有債務。現金流生成依然強勁，第四季營運提供的現金為 1.06 億美元。本季我們的資本支出為 2,500 萬美元，全年資本支出為 1.1 億美元。扣除資產剝離後的淨資本支出為 7,900 萬美元。

Our inventories declined in the quarter and decreased by more than 10% during 2023 as we continue to focus on managing inventory and reducing our investments in working capital. We will remain focused on lowering our inventories during 2024 which may have a short-term impact on margins, but will benefit our cash generation.

由於我們繼續專注於管理庫存和減少營運資本投資，我們的庫存在本季度有所下降，並在 2023 年下降了 10% 以上。我們將繼續專注於在 2024 年降低庫存，這可能會對利潤率產生短期影響，但將有利於我們的現金產生。

While maintaining a strong balance sheet, we continue to return capital to shareholders with our ongoing stock repurchases. We repurchased shares for a total of $64 million in the fourth quarter and $223 million in 2023. The Board has approved an additional $300 million in share repurchases. We've returned over $850 million to shareholders via share repurchases in the last 3 years, and continue to buy back shares opportunistically.

在維持強勁的資產負債表的同時，我們繼續透過持續的股票回購向股東返還資本。我們在第四季度回購了總計 6,400 萬美元的股票，在 2023 年回購了 2.23 億美元的股票。董事會已批准另外 3 億美元的股票回購。過去 3 年，我們透過股票回購向股東返還了超過 8.5 億美元，並將繼續趁機回購股票。

Moving to the outlook on Slide 9. Fourth quarter book-to-bill was below 1. Continued economic uncertainty with low PMI numbers in Europe, North America and Japan is impacting industrial demand and capital investments. We're also seeing cutting OEM customers managing inventory and reducing purchasing which may not restart until the second quarter.

轉到投影片 9 的展望。第四季訂單出貨比低於 1。歐洲、北美和日本 PMI 數據較低，持續的經濟不確定性正在影響工業需求和資本投資。我們還看到 OEM 客戶管理庫存並減少採購，這可能要到第二季才會重新啟動。

In China, demand has remained soft in some of the mature markets such as cutting and marking are facing severe competition. We expect e-mobility investments to pick up in China in 2024, but only in the second half of the year. While it will be a challenging start to the year, we believe demand will improve as the year unfolds. We continue to focus on emerging growth applications and our strategy to continue to drive laser adoption in new markets and applications in 2024.

在中國，一些成熟市場的需求仍然疲軟，例如切割和打標面臨激烈的競爭。我們預計中國的電動車投資將在 2024 年回升，但僅限於下半年。儘管今年將是一個充滿挑戰的開端，但我們相信隨著今年的展開，需求將會改善。我們繼續關注新興成長應用以及我們的策略，即到 2024 年繼續推動雷射在新市場和應用中的採用。

For the first quarter 2024, IPG expects revenue of $235 million to $265 million. IPG anticipates delivering earnings per diluted share in the range of $0.30 to $0.60 and with approximately 46 million diluted common shares outstanding. The company expects the first quarter tax rate to be approximately 25%. We expect 2024 CapEx to be in the range of $120 million to $130 million, net of disposal of assets as we continue to invest in additional manufacturing capacity in Germany, U.S. and other locations.

IPG 預計 2024 年第一季的營收為 2.35 億美元至 2.65 億美元。 IPG 預計稀釋後每股盈餘將在 0.30 至 0.60 美元之間，稀釋後流通普通股約為 4,600 萬股。該公司預計第一季稅率約為25%。我們預計 2024 年資本支出將在 1.2 億至 1.3 億美元之間（扣除資產處置），因為我們將繼續投資德國、美國和其他地區的額外製造能力。

Significant amounts of the spending in 2024 relates to replacement of fiber and other critical components capacity that we no longer have access to in Russia. We expect capital expenditures at a significantly lower level in 2025 and beyond. As discussed in the safe harbor passage of today's earnings press release, our guidance is based upon current market conditions and expectations, assumes exchange rates referenced in our earnings press release and is subject to risks outlined in the safe harbor and the company's reports with the SEC.

2024 年的大量支出涉及更換我們在俄羅斯無法再獲得的光纖和其他關鍵零件產能。我們預計 2025 年及以後的資本支出水準將顯著降低。正如今天收益新聞稿的安全港段落中所討論的，我們的指導基於當前的市場狀況和預期，假設我們的收益新聞稿中引用的匯率，並受到安全港和公司向SEC 提交的報告中概述的風險的影響。

With that, we'll be happy to take your questions.

這樣，我們將很樂意回答您的問題。

(Operator Instructions) Our first question is coming from James Ricchiuti from Needham & Company.

（操作員說明）我們的第一個問題來自 Needham & Company 的 James Ricchiuti。

So it sounds like the non-China EV-related business held up better in the quarter. Is that your expectation still as you think about the early quarter '24, just given some of the signs of slowing in the Western markets as it relates to EV and the impact that might have on capital investments, maybe moving -- shifting to the right?

因此，聽起來非中國電動車相關業務在本季表現較好。當您考慮 24 年初季度時，您的預期是否仍然如此，只是考慮到西方市場因電動車而放緩的一些跡像以及可能對資本投資的影響，也許會向右移動？

Jim, you're right. EV outside of China in the fourth quarter was quite strong with good sales in North America, Korea and Japan. And clearly, given the guidance we've got for the first quarter, at least, there is a sort of lower level of EV sales in, say, North America in the first quarter, in particular, expected. And I don't think there's really a big pickup in the first half of the year. We've mentioned that we think we'll start to see some capacity investment in China in the second half of the year.

吉姆，你說得對。第四季中國以外的電動車表現相當強勁，在北美、韓國和日本銷售良好。顯然，根據我們對第一季的指導，至少預計第一季北美地區的電動車銷售水準會有所下降。我認為今年上半年不會有真正的大幅回升。我們已經提到，我們認為今年下半年我們將開始在中國看到一些產能投資。

There are a lot of R&D projects that we're working on, both in North America and in Europe with a number of the larger automotive manufacturers, there's a significant, I'd say, no rebound, but increase in interest given the success of some companies utilizing the sort of subsystem incorporating the laser weld measurement technology is a renewed or increased interest rather from a broader basis, some of the large automotive manufacturing companies.

我們正在北美和歐洲與許多大型汽車製造商合作開展許多研發項目，我想說，沒有反彈，但鑑於項目的成功，人們的興趣有所增加一些公司利用包含激光焊接測量技術的子系統，重新引起或增加了興趣，而不是從更廣泛的基礎上，一些大型汽車製造公司。

So we remain optimistic about it, but I think it's going to be a slow start to the year. We've got a fairly robust number, for example, the new drying application, we expect that to grow strongly. We had a good win for some EV motor applications, some have been welding applications as well. So that was a positive. But yes, it's a difficult start to the year, and I think EV is part of that as well.

因此，我們對此保持樂觀，但我認為今年的開局將會緩慢。我們有一個相當強勁的數字，例如，新的乾燥應用程序，我們預計它將強勁增長。我們在一些電動汽車馬達應用中取得了很好的勝利，一些焊接應用也是如此。所以這是積極的。但是，是的，今年是一個艱難的開始，我認為電動車也是其中的一部分。

Got it. And Tim, you size some of the impact from on Q4 gross margins from the production shutdowns. Has that as we think about the early part of Q1, has that also been a headwind that has factored into the -- presumably the Q1 gross margin guidance?

知道了。提姆，您評估了停產對第四季毛利率的一些影響。正如我們對第一季初期的考慮，這是否也是影響第一季毛利率指引的不利因素？

Yes, part of the Q1 is continuing to try and work down inventories. I was actually really pleased with the progress and the pretty definitive progress we made in that in the end of the year and the way that translated into really strong cash flow generation. I'd say in Q1, it's a combination of continuing to want to manage inventories closely with also a level of revenue guidance that starts to more fundamentally impact our fixed cost absorption relative to, say, a $300 million revenue run rate. It's a combination of the 2 things, Jim.

是的，第一季的一部分是繼續嘗試降低庫存。事實上，我對我們在年底取得的進展和相當明確的進展以及轉化為真正強勁的現金流產生的方式感到非常滿意。我想說，在第一季度，這是繼續希望密切管理庫存與收入指導水準的結合，這開始從根本上影響我們相對於 3 億美元收入運行率的固定成本吸收。這是兩件事的結合，吉姆。

Next question is coming from Ruben Roy from Stifel.

下一個問題來自 Stifel 的 Ruben Roy。

Tim, I would like to stay on the inventory topic, if we could. And move over to the customer side of the equation. I think you mentioned that you were managing inventory at customers. And I'm wondering if you can give us a little bit of detail around that dynamic versus demand? And I know you like -- you don't like to guide for more than a quarter, but you did say probably expect some pick up second half.

提姆，如果可以的話，我想繼續討論庫存話題。並轉向等式的客戶方。我想您曾提到您正在管理客戶的庫存。我想知道您是否能為我們提供有關動態與需求的一些細節？我知道你喜歡——你不喜歡指導超過四分之一的時間，但你確實說過可能期望下半年有所回升。

So when you think about the first half, do you think that there's further downside as inventories are digested at customers in Q2? Or do you think that we're sort of at a level where we could think about sort of a flat revenue outcome and then perhaps a little bit of growth in second half as the inventories come off -- come down at your customers?

那麼，當您考慮上半年時，您認為隨著第二季度客戶消化庫存，還會有進一步的下行空間嗎？或者你認為我們現在處於這樣一個水平，我們可以考慮收入持平，然後隨著庫存的減少，下半年可能會出現一點增長——來自你的客戶？

Yes. So I think it's mainly our cutting OEM customers, who are managing their inventory levels. And not only are they trying to get those down in the first half of the year, but on the other side of the equation, they're also expecting to see some improvement in their business. as we get into the second quarter and beyond. So we don't expect cutting market outside of China to remain persistently weak for the entire year. So we're looking for some recovery in that.

是的。所以我認為主要是我們的 OEM 客戶正在管理他們的庫存水準。他們不僅試圖在今年上半年降低這些成本，而且在另一方面，他們也期望看到自己的業務有所改善。當我們進入第二季及以後。因此，我們預計中國以外的切割市場全年不會持續疲軟。所以我們正在尋找一些復甦。

I'd say my sense is we're seeing somewhat of a bottom in the demand cycle here. We don't have a great bookings forecast for the first quarter that's been put together, but it's actually relatively stable. January bookings off of -- compared to a very, very weak October, saw some improvement and January is the first month of the year. So that was quite good. It was still down on a year-over-year basis.

我想說，我的感覺是，我們看到這裡的需求週期已經觸底。我們對第一季的預訂量沒有很好的預測，但實際上相對穩定。與非常非常疲弱的 10 月相比，一月份的預訂量有所改善，一月份是今年的第一個月。所以這非常好。年比仍有所下降。

So if I'm sort of going to pull together a trajectory here, I think the first half of the year will continue to be -- will be very challenged. But I'd like to target, and we are targeting maybe some moderate growth on a year-over-year basis in the second half of the year. I mean clearly, given the weakness we had in the second half of last year, that shouldn't be too difficult to do if we see even a basic recovery and things. But I think it would be good to get back into some growth on a year-over-year basis, and that's certainly what we're trying to target.

因此，如果我要在這裡整理出一條軌跡，我認為今年上半年將繼續面臨很大的挑戰。但我想設定一個目標，我們的目標是在今年下半年達到年比適度成長。我的意思很明確，考慮到我們去年下半年的疲軟，如果我們看到基本的復甦和其他情況，那麼做到這一點應該不會太難。但我認為，年比恢復一些成長是件好事，這當然是我們努力的目標。

Very helpful, Tim. I guess just a follow-up on that, outside of some of the -- your own inventory work downs, et cetera, and obviously, on the lower level of revenue, there are these absorption costs that we have to worry about. But in terms of some of the other areas that you folks are working on last year, sort of bringing up the expanded factory manufacturing levels, et cetera, as revenue does recover, are some of the factories set to go.

非常有幫助，蒂姆。我想這只是後續行動，除了您自己的庫存工作下降等之外，顯然，在收入水平較低的情況下，我們必須擔心這些吸收成本。但就你們去年正在進行的其他一些領域而言，隨著收入確實恢復，一些工廠即將關閉，例如提高工廠製造水準等。

I mean Germany, Poland, in terms of seeing a little more of a, I guess, inflection in gross margins as those revenues come back second half of the year, or even looking -- sort of exiting this year into next year, should we expect sort of a meaningful recovery in gross margins as revenues recover, I guess, is the question?

我的意思是德國、波蘭，我想，隨著這些收入在下半年回升，毛利率會出現更多的變化，甚至看起來——有點像今年退出到明年，我們應該這樣做嗎？我想，隨著收入的恢復，毛利率會出現有意義的恢復，這是問題嗎？

Yes. We expect to see that basically as we sort of absorb the fixed cost base better. Poland and Italy have made tremendous progress in getting their manufacturing and scale of their manufacturing increase. Germany has also made a lot of progress on that and so is the U.S.

是的。我們預計基本上會看到這一點，因為我們更好地吸收了固定成本基礎。波蘭和義大利在製造業和製造業規模成長方面取得了巨大進步。德國在這方面也取得了很大進展，美國也是如此。

I'll leave Dr. Scherbakov to talk about some of the cost reductions that we're aiming to introduce on some of the high-power lasers with new designs there.

我將讓 Scherbakov 博士談談我們打算在採用新設計的一些高功率雷射上引入的一些成本降低措施。

Yes. We now not now, but last quarter, we also installed the development of the new technological electromechanical platform for our mid-power and high-power lasers. One of the goal, of course, it was a cost reduction, a material cost reduction. Our evaluation and we will confirm, when we'll start to ship to our customer this quarter. Our evaluation is cost reduction will be up to between 15% and 20%, but it's only initial evaluation and maybe it will be very much -- not much more, but a little bit more.

是的。我們現在不是現在，而是上個季度，我們也為我們的中功率和高功率雷射安裝了新技術機電平台的開發。當然，目標之一是降低成本，降低材料成本。我們將進行評估，並在本季開始向客戶出貨時進行確認。我們的評估是成本降低幅度將達到 15% 到 20%，但這只是初步評估，也許會降低很多——不多，但多一點。

And this is one of our cost reduction and optimization of our gross margin in the future. Also for laser like components, but also we start to produce a new -- for us, a new product, that means semi-integrated solution. It means we are proposing today to customer, not releases of a set of components like laser scanner, LDD monitor and then there is this special integrated box we are proposing to our customers in our solutions.

這也是我們未來降低成本、優化毛利率的目標之一。同樣對於類似雷射的組件，我們也開始生產一種新的——對我們來說，一種新產品，這意味著半集成解決方案。這意味著我們今天向客戶推薦的不是雷射掃描器、LDD 顯示器等一系列組件的發布，還有我們在解決方案中向客戶推薦的特殊整合盒。

For example, if customers hit problems with [copper] welding, we definitely provided by our subsystem. We guarantee that customer will get the optimal result with copper solution, the same for aluminum solutions, the same for other materials. For us, it's a new experience, and we would like to propose to our customer in the future such kind of product. I mean semi-integrated product with final solution to customer processes.

例如，如果客戶遇到[銅]焊接問題，我們肯定由我們的子系統提供。我們保證客戶使用銅解決方案、鋁解決方案以及其他材料都將獲得最佳結果。對我們來說，這是一種新的體驗，我們希望將來向我們的客戶推薦這樣的產品。我的意思是半整合產品以及針對客戶流程的最終解決方案。

These are our main goals from one side to optimize development of our product to minimize the cost from other side to propose a new product for our customers.

這些是我們的主要目標，一方面是優化我們產品的開發，另一方面是最大限度地降低為客戶推薦新產品的成本。

Understood. Thank you, Dr. Scherbakov, for all that detail.

明白了。謝謝謝爾巴科夫博士提供的所有細節。

(Operator Instructions) Our next question is coming from Scott Graham from Seaport Research.

（操作員說明）我們的下一個問題來自 Seaport Research 的 Scott Graham。

I actually have several of them. Would you guys be able to tell us what your pricing was for the quarter?

我實際上有幾個。你們能告訴我們你們這個季度的定價是多少嗎？

We give some -- historically given some guidance on high-power laser pricing, in particular, which has been more sensitive. Pricing has been very stable Scott for the last 18 months or so and we didn't see any significant change in that in the fourth quarter.

我們提供了一些——歷史上提供過一些關於高功率雷射定價的指導，特別是，它一直更加敏感。 Scott 的定價在過去 18 個月左右的時間裡一直非常穩定，我們在第四季度沒有看到任何重大變化。

So when you say you saw significant competition, you weren't referring to pricing you were just referring to volume?

所以當你說你看到了激烈的競爭時，你指的不是定價，而是銷售？

No, we're referring to the fact that we've had a lot of Chinese competition around the cutting market for several years now. We choose not to compete with them on pricing, which has resulted in a loss of share for IPG within the Chinese cutting market. So the Chinese competitors will price at a significant discount to IPG. But we choose to focus on the premium aspect and performance of our product and price it appropriately in that regard.

不，我們指的是這樣一個事實：幾年來，我們在切割市場上一直面臨著許多中國競爭。我們選擇不與他們進行價格競爭，這導致 IPG 在中國切割市場失去了份額。因此，中國競爭對手的定價將比 IPG 大幅折扣。但我們選擇專注於產品的優質方面和性能，並在這方面適當定價。

Got it. What would you -- I think you mentioned that the impact on gross margin quarter-over-quarter was about 400 basis points for the production shutdowns. Is that kind of going to stay with us in the first quarter? Is that a -- again, using the third quarter as the baseline -- is that a reasonable proxy for what the -- what's impacting the first quarter gross margin?

知道了。您會怎麼想？我想您提到生產停工對毛利率的影響環比影響約為 400 個基點。這種情況會在第一季繼續存在嗎？再次使用第三季作為基準，這是影響第一季毛利率的合理指標嗎？

Yes. We've given gross margin guidance of 37% to 40%. So some of that is just -- well whether as you're trying to take inventory down or you've got a lower level of revenue, it's an impact on the absorption of the fixed cost base. In conjunction with that, we are closely managing expenses within the business. So we're taking down things like over time very dramatically looking at trying to optimize the cost of the business and also the cost of the product.

是的。我們給出的毛利率指引為 37% 至 40%。因此，無論您是想減少庫存還是降低收入水平，其中一些因素都會對固定成本基礎的吸收產生影響。同時，我們正在密切管理業務內的費用。因此，隨著時間的推移，我們正在大力減少諸如嘗試優化業務成本和產品成本之類的事情。

But basically, whether we're trying to get inventory down or in the first quarter, coupling that with the relatively low level of revenue the gross margin guidance is kind of in line with where we reported Q4 at the top end a little bit better.

但基本上，無論我們是試圖降低庫存還是在第一季度，再加上相對較低的收入水平，毛利率指引與我們報告的第四季高端的情況比較一致。

Right. I guess -- and I get that. I guess, what I'm getting to is that if you did not have that item weighing down the gross margin in the first quarter, it actually looks like your gross margin would be up year-over-year. And I just wanted to see why that would be the case?

正確的。我想——我明白了。我想，我要說的是，如果您沒有該項目在第一季壓低毛利率，那麼實際上看起來您的毛利率會比去年同期上升。我只是想看看為什麼會這樣？

No. On a year-over-year basis growth, even with this level of revenue, gross margin would not be up in the first quarter compared to the first quarter of 2023, when I think gross margin was 42%. You can't just add 400 basis, sorry, I think, I get what you're saying. You can't just add 400 basis points back to the range that we've given you. It's a combination of the lower revenue in the first quarter, as well as, probably a bit more moderate decreases in inventory in the first quarter than we attained and targeted in the fourth quarter.

不會。從同比增長來看，即使是這樣的收入水平，第一季的毛利率也不會比 2023 年第一季有所上升，我認為當時的毛利率為 42%。你不能只加 400 個基點，抱歉，我想，我明白你的意思。您不能只是將 400 個基點加回我們給您的範圍內。這是第一季營收下降以及第一季庫存下降幅度可能比我們在第四季實現的目標和目標更為溫和的綜合因素。

You can't just add 400 basis points to our range. I see what you're saying there.

您不能只在我們的範圍內增加 400 個基點。我明白你在說什麼。

No, and I see what you're saying. I completely follow. Last question. A lot of questions about the outlook for Germany, particularly on the industrial side. I know you had an up quarter. However, it was, of course, against a fairly easy comparison. I'm just wondering what you're seeing in Germany as we start the year?

不，我明白你在說什麼。我完全遵循。最後一個問題。關於德國前景的許多問題，特別是在工業方面。我知道你的季度業績有所成長。然而，這當然是一個相當簡單的比較。我只是想知道新年伊始您在德國會看到什麼？

But you see, we are very optimistic about our situation. I mean,there are some orders and also some applications of our lasers in Germany. For example, last year, despite of this strong -- not good economical conditions, our revenue in Europe and also include Germany was a little bit grow up.

但你看，我們對自己的處境非常樂觀。我的意思是，我們的雷射在德國有一些訂單和一些應用。例如，去年，儘管經濟狀況不佳，但我們在歐洲（包括德國）的收入還是略有成長。

And you see, of course, EV applications in Germany, in particular, it's a very strong application for our lasers. And we are also observing the trend because all manufacturing potential existing or potential manufacturer of electrical cars, they would like to produce battery for their cars mainly in Europe, including also Germany. And this is for IPG, it's a very good sign because our lasers, our other solutions will be acceptable by our customers here.

當然，您會看到德國的電動車應用，尤其是我們的雷射器的一個非常強大的應用。我們也在觀察這一趨勢，因為所有潛在的現有或潛在的電動車製造商都希望主要在歐洲（包括德國）生產汽車電池。這對 IPG 來說是一個非常好的跡象，因為我們的雷射和其他解決方案將被我們的客戶所接受。

Your next question is coming from [Keith Howson] from Northcoast Research.

您的下一個問題來自 Northcoast Research 的 [Keith Howson]。

I appreciate it. I was hoping you guys could expand on the commentary regarding the hiring of new sales positions in the quarter and expectations going forward. Can you provide some context in terms of how much of an investment you guys are making and perhaps where are some investments can be occurring?

我很感激。我希望你們能夠詳細闡述有關本季招募新銷售職位和未來預期的評論。您能否提供一些背景信息，說明你們正在進行多少投資，以及可能會在哪裡進行一些投資？

It's occurring on a pretty broad-based geographically, North America in Europe, some of our Asian entities as well. We're targeting strategically growing a broad set of end markets, right? We've got the tremendous opportunity on the welding side, which covers a very wide diversity of industries, whether it's in automotive or fabrication, other industries as well. So we're investing in key account managements and capability around that application.

它發生在相當廣泛的地理範圍內，北美、歐洲，還有我們的一些亞洲實體。我們的目標是策略性地發展廣泛的終端市場，對吧？我們在焊接方面擁有巨大的機會，涵蓋了非常廣泛的行業，無論是汽車還是製造，還有其他行業。因此，我們正在圍繞該應用程式投資關鍵客戶管理和功能。

We believe we've got very strong opportunities, for example, opportunities and continuing to grow cleaning applications, the new drying application, some of the more specialized areas and more advanced applications such as semiconductor. So we're really -- historically, the company has been very much driven by an OEM customer base across a narrower set of applications. The build-out of the sales force is to really add capability and depth and strength to cover what are very significant growth opportunities in a broader set of applications for the company. That's how I'd best describe it.

我們相信我們擁有非常強大的機會，例如，清潔應用、新乾燥應用、一些更專業的領域和更先進的應用（例如半導體）的機會和持續成長。因此，從歷史上看，我們公司在很大程度上是由 OEM 客戶群在較小範圍的應用程式中推動的。銷售團隊的建立是為了真正增加能力、深度和實力，以涵蓋公司更廣泛的應用程式中非常重要的成長機會。這就是我最好的描述方式。

All right. Helpful. I appreciate that. Just as my follow-up, some the cost reductions you were referring to in terms of the mid- and high-level lasers. At what point during the year, should we start to see some of that benefit gross margins?

好的。有幫助。我很感激。正如我的後續行動，您提到的中高級雷射器的一些成本降低。在一年中的什麼時候，我們應該開始看到毛利率有所提高？

The first results will be demonstrated in the second quarter because (inaudible) introduce this medium power lasers. And the third and fourth quarter, we will start to introduce to our customer high power. It means we have 8 kilowatt up to 20 kilowatt lasers.

第一個結果將在第二季度展示，因為（聽不清楚）引入了這種中等功率雷射。第三和第四季度，我們將開始向我們的客戶推出高功率產品。這意味著我們擁有 8 千瓦至 20 千瓦的雷射。

Next question is coming from Mark Miller from The Benchmark Company.

下一個問題來自 The Benchmark Company 的 Mark Miller。

Can you give us a feeling for your outlook for e-mobility opportunities?

您能否向我們介紹一下您對電動車機會的看法？

Overall, this year, Mark, as I mentioned at the beginning, we're doing a lot of work outside of China with major automotive companies in Europe. We had a robust pipeline of sales in North America as well last year. It's probably, as I said, that the first half of the year is going to be slow on e-mobility, but we're expecting a pickup. I think when you'll start to look at some of the data that's out there last year, maybe 400 gig of total capacity was added.

總的來說，馬克，正如我在一開始提到的，今年我們在中國以外與歐洲的主要汽車公司合作進行了大量工作。去年我們在北美也有強勁的銷售管道。正如我所說，今年上半年電動車的發展可能會放緩，但我們預計會有所回升。我認為當您開始查看去年的一些數據時，可能會增加 400 GB 的總容量。

That was a slowdown going forward that they're going to come on stream this year, which drove sales last year in 2023, there was a significantly higher amount of capacity that came on stream, which drove the strength in 2022. As you look out there's an expectation that I think more than 1 terawatt of capacity has to come on stream in '25 and '26. That would imply that towards the end of this year and the beginning of '25, there should be a meaningful pickup in demand around EV globally.

預計今年的產能將放緩，這推動了去年 2023 年的銷售，但投產產能顯著增加，推動了 2022 年的成長。我預計 25 年和 26 年將有超過 1 太瓦的產能投產。這意味著到今年年底和 25 年初，全球電動車的需求應該會出現有意義的回升。

I'm just wondering in China and especially in terms of EVs, the softness there, how much of it is just attributed to softness for electric vehicle demand versus any competitor having an impact on you in the EV market?

我只是想知道在中國，特別是在電動車方面，那裡的疲軟，有多少是由於電動車需求疲軟，而不是電動車市場上對您產生影響的任何競爭對手造成的？

I think it's more the capacity that they had built out and that they're actually growing into that capacity. So EV demand in the first half of last year was pretty weak. You're absolutely right. In the second half of the year, though it picks up quite meaningfully.

我認為這更多的是他們已經建立的能力，並且他們實際上正在成長為這種能力。因此，去年上半年的電動車需求相當疲軟。你是絕對正確的。下半年，雖然有所回升，但意義重大。

I think -- I should have got the data in hand, but a significant and quite high proportion of total EV sales. In China -- of total vehicle sales in China or EV, I haven't quite got the number right here in hand. So I'd say the EV market, the end market in China has started to improve, particularly in the second half of last year. And I think total EV sales were about 40% of light vehicle sales.

我認為——我應該掌握這些數據，但電動車總銷量的比例相當高。在中國——中國的汽車總銷量或電動車銷量，我手邊還沒有確切的數字。所以我想說電動車市場，中國的終端市場已經開始改善，特別是去年下半年。我認為電動車總銷量約佔輕型車銷量的 40%。

Thank your next question today is a follow-up from Jim Ricchiuti from Needham & Company.

謝謝，今天的下一個問題是來自 Needham & Company 的 Jim Ricchiuti 的後續問題。

I wanted to ask about the systems business, which showed some nice sequential growth. And I wonder if you could talk a little bit about what's driving that, whether you're seeing some impact on the systems business on the cleaning side? Or is that some of the newer drying applications? Or is it just strengthened welding in general?

我想詢問有關係統業務的情況，該業務顯示出一些不錯的連續成長。我想知道您是否可以談談推動這一趨勢的原因，您是否看到清潔方面的系統業務受到一些影響？或者這是一些較新的乾燥應用？還是只是一般的強化焊接？

First of all, of course, we will see there are very big potential for our systems and for cleaning applications. We already started the material to our customer into sales and systems and the first reaction from customers is very positive because a lot of different applications and for such kind of locations, also, we have to provide flexible enough systems. But again, combination of our high-power pulsed lasers, I mean high power after medium power up to 3 kilowatt. Again, together is our scanners, together is our monitor.

首先，當然，我們會看到我們的系統和清潔應用有很大的潛力。我們已經開始向客戶提供銷售和系統材料，客戶的第一個反應非常積極，因為有許多不同的應用，對於此類地點，我們也必須提供足夠靈活的系統。但同樣，我們的高功率脈衝雷射的組合，我的意思是中功率高達 3 千瓦之後的高功率。同樣，我們的掃描器在一起，我們的顯示器也在一起。

And finally, with integrated box, we can provide this such kind of a subsystem to our customer, not final system because final system is much more complicated. It must be of course, coordinated with final customer. But this subsystem, flexible subsystem for the front applications for us, it will be and we also demonstrated available product.

最後，透過整合盒，我們可以向客戶提供這種子系統，而不是最終系統，因為最終系統要複雜得多。當然，它必須與最終客戶協調。但是這個子系統，對我們來說是前端應用的靈活子系統，它將是我們也展示的可用產品。

The second very important application also connected to the welding. I already mentioned that we would like not to present a set of components to our customer. What we would like to produce to our customer final solutions, their problem. It means -- copper because it's for EV applications copper welding is very important for different application and the situation. Aluminum welding also is very important different kind of Aluminum different configurations and so on. And we're proposing to our customers the final solutions.

第二個非常重要的應用也與焊接有關。我已經提到過，我們不想向客戶展示一組組件。我們希望為客戶提供最終的解決方案，解決他們的問題。這意味著——銅，因為它用於電動車應用，銅焊接對於不同的應用和情況非常重要。鋁焊接也非常重要，不同種類的鋁不同的配置等等。我們正在向客戶提出最終的解決方案。

For us, it's absolutely new business model, and we would like to promote this business model for our future expansion for a laser system for different kind of applications. In concern to drying -- to drying application, today we are shipping on the lasers. But of course, we are in the close contact with our potential and existing customers and also our status in how we can develop again, not the final system because final system might be more complicated. But again, some solution for our customers, (inaudible) definitely.

對我們來說，這絕對是新的商業模式，我們希望推廣這種商業模式，以便我們未來擴展不同類型應用的雷射系統。關於乾燥——乾燥應用，今天我們正在使用雷射。但當然，我們正在與我們的潛在和現有客戶以及我們如何再次開發的狀態保持密切聯繫，而不是最終系統，因為最終系統可能會更複雜。但同樣，肯定會為我們的客戶提供一些解決方案（聽不清楚）。

Thank you for clarifying, by the way, on the drying side. Last question for me is just on the medical portion of the business. How would you characterize the outlook as you look at Q1 and perhaps further into 2024 on the medical side of the business?

順便說一句，謝謝你在乾燥方面的澄清。我的最後一個問題是關於業務的醫療部分。當您展望第一季乃至 2024 年醫療業務方面的前景時，您會如何描述？

In Q1, actually, Jim, our medical is going to be after a strong a little bit weaker with one of our main OEM on the surgical side as well, adjusting some of their inventories down. For the full year, we expect Medical to basically be flattish and then we're introducing a lot of 2 or 3 new applications and devices at the end of this year, working with an additional partner as well on one of our main applications. So we then expect the medical to start to pick up much more meaningfully into 2025.

實際上，吉姆，在第一季度，我們的醫療將在外科方面的主要原始設備製造商之一的強勁後稍弱一些，調整他們的一些庫存。對於全年而言，我們預計醫療市場將基本持平，然後我們將在今年年底推出大量 2 或 3 個新應用程式和設備，並與其他合作夥伴合作開發我們的一個主要應用程式。因此，我們預計醫療狀況將在 2025 年開始顯著回升。

Next question is coming from Scott Graham from Seaport Research.

下一個問題來自海港研究中心的史考特‧格雷厄姆。

The first quarter operating expenses guidance, I guess I was a little bit surprised that it was at that level and maybe you can't get to it in the first quarter. But what are you doing around operating expenses in 2024 to bring those down as a percentage of sales?

第一季營業費用指導，我想我有點驚訝，它處於這個水平，也許你在第一季無法達到它。但是，在 2024 年，您將採取哪些措施來降低營運費用佔銷售額的百分比？

I'd say, so the first thing is targeting getting revenue back up, that will bring them down a bit. But we are focused on looking at the total level of expenses. One of the things that happens at the beginning of the year, though, is that we have an annual operating plan that's out there. And last year, we were below that annual operating plan, not surprisingly given the results. So some of your variable compensation accruals do change, when you have a reset on the annual operating plan.

我想說，第一件事就是恢復收入，這會讓他們有所下降。但我們重點關注支出的總水準。不過，今年年初發生的一件事是，我們已經制定了年度營運計畫。去年，我們低於年度營運計劃，考慮到結果也就不足為奇了。因此，當您重置年度營運計劃時，您的一些可變薪酬應計確實會發生變化。

There is though -- we don't believe we want to take a lot of investment. We mentioned, some of the investments on selling expenses is very important because we're not just focused on this year, but we're trying to drive growth out of a wide range of new applications. We're also trying to accelerate bringing some of the newer product to market. So for example, on continuing to invest and develop our ultrafast and UV lasers, which will substantially open up some more of the microprocessing market, which again is a fast-growing area.

不過，我們認為我們不想接受大量投資。我們提到，銷售費用的一些投資非常重要，因為我們不僅關註今年，而且我們正在努力推動各種新應用的成長。我們也試圖加快將一些新產品推向市場的速度。例如，繼續投資和開發我們的超快和紫外線雷射器，這將大大開拓更多的微加工市場，這又是一個快速成長的領域。

On the G&A side, there's a limited amounts of expense that we can take out there. So it's really a question of trying to optimize them as best as possible, but certainly not cutting back on areas, where we think we should be investing in for the long-term growth and benefit of the company. And my personal view and it's a view we've held at IPG for a long time is that cutting R&D and some of these investments just because you're in what you think is a relatively temporary downturn is the wrong thing to do. The longer-term returns had on continuing to make those investments.

在一般行政費用方面，我們可以支出的費用有限。因此，這實際上是一個盡可能優化它們的問題，但肯定不會削減我們認為應該投資以實現公司長期成長和利益的領域。我個人的觀點（也是我們 IPG 長期以來的觀點）是，僅僅因為您認為處於相對暫時的低迷時期，就削減研發和其中一些投資，這是錯誤的做法。長期回報取決於繼續進行這些投資。

Understood. Just my last question would be around your commentary that some of this destocking might ease in the second quarter and you feel that second half revenues can be up year-over-year. Is that customer feedback? Is that trade press, where is that coming from at those views?

明白了。我的最後一個問題是關於您的評論，即部分去庫存可能會在第二季度有所緩解，並且您認為下半年收入可能會同比增長。這是客戶反饋嗎？那些貿易媒體的觀點是從哪裡來的？

No, with direct discussions with all of our main OEM customers on the cutting side. It just not like just trade news or PMI data. Or it's more specific feedback than that.

不，我們與所有主要 OEM 客戶在切割方面進行直接討論。它不僅僅是貿易新聞或 PMI 數據。或者是比這更具體的回饋。

We reached end of our question-and-answer session. I'd like to turn the floor back over for your further or closing comments.

我們的問答環節結束了。我想請大家發表進一步或結束評論。

Thank you for joining us this morning and your continued interest in IPG. As always, we will be participating in a number of investor events this quarter and looking forward to speaking with you soon. Have a great day, everyone.

感謝您今天早上加入我們以及您對 IPG 的持續關注。像往常一樣，我們將在本季參加許多投資者活動，並期待很快與您交談。祝大家有個美好的一天。

Thank you. That does conclude today's teleconference and webcast. You may disconnect your lines at this time, and have a wonderful day. We thank you for your participation today.

謝謝。今天的電話會議和網路廣播到此結束。此時您可以斷開線路，度過美好的一天。我們感謝您今天的參與。