Knowles Corp (KN) 2019 Q3 法說會逐字稿

Good afternoon and welcome to the Knowles Corporation Third Quarter 2019 Financial Results Conference Call. (Operator Instructions) Here with opening remarks is Knowles' Vice President of Investor Relations, Mike Knapp. Please go ahead.

下午好，歡迎參加樓氏集團 2019 年第三季財務業績電話會議。（操作員說明）樓氏集團投資者關係副總裁 Mike Knapp 致開幕詞。請繼續。

Thanks, Christine, and welcome to our Q3 2019 Earnings Call. I'm Mike Knapp and presenting with me on the call today are Jeff Niew, our President and Chief Executive Officer; and John Anderson, our Senior Vice President and Chief Financial Officer.

謝謝 Christine，歡迎參加我們的 2019 年第三季財報電話會議。我是 Mike Knapp，今天與我一起參加電話會議的是我們的總裁兼執行長 Jeff Niew；以及我們的高級副總裁兼財務長約翰·安德森。

Our call today will include remarks about future expectations, plans and prospects for Knowles, which constitute forward-looking statements for purposes of the Safe Harbor provisions under applicable federal securities laws. Forward-looking statements in this call will include comments about demand for company products, anticipated trends in company sales, expenses and profits, and involve a number of risks and uncertainties that could cause actual results to differ materially from current expectations.

我們今天的電話會議將包括有關樓氏集團未來預期、計劃和前景的評論，這些評論構成適用聯邦證券法下安全港條款的前瞻性陳述。本次電話會議中的前瞻性陳述將包括有關公司產品需求、公司銷售、費用和利潤的預期趨勢的評論，並涉及許多可能導致實際結果與當前預期存在重大差異的風險和不確定性。

The company urges investors to review the risks and uncertainties in the company's SEC filings including but not limited to the annual report on Form 10-K for the fiscal year ended December 31, 2018; periodic reports filed from time to time with the SEC; and the risks and uncertainties identified in today's earnings release. All forward-looking statements are made as of the date of this call and Knowles disclaims any duty to update such statements except as required by law.

該公司敦促投資者審查該公司向 SEC 提交的文件中的風險和不確定性，包括但不限於截至 2018 年 12 月 31 日的財年 10-K 表格的年度報告；不時向 SEC 提交的定期報告；以及今天的收益發布中確定的風險和不確定性。所有前瞻性陳述均截至本次電話會議之日作出，除法律要求外，Knowles 不承擔任何更新此類陳述的義務。

In addition, pursuant to Reg G, any non-GAAP financial measures referenced during today's call can be found in our press release, posted on our website, at Knowles.com, including a reconciliation to the most directly comparable GAAP measures. All references on this call will be on a non-GAAP continuing operations basis unless otherwise indicated. Also we've made selected financial information available on webcast slides which can be found in the IR section of our website.

此外，根據Reg G 的規定，今天電話會議中引用的任何非GAAP 財務指標都可以在我們的新聞稿中找到，該新聞稿發佈在我們的網站Knowles.com 上，包括與最直接可比較的GAAP 指標的調節。除非另有說明，本次電話會議的所有參考資料均基於非公認會計原則持續運作。此外，我們還在網路廣播幻燈片中提供了精選的財務信息，這些信息可以在我們網站的投資者關係部分找到。

With that, let me turn the call over to Jeff who will provide some details on our results. Jeff?

接下來，讓我將電話轉給傑夫，他將提供有關我們結果的一些詳細資訊。傑夫？

Thanks, Mike, and thanks to all of you for joining us today.

謝謝麥克，也謝謝大家今天加入我們。

In Q3 we continued to make solid progress against our strategy to deliver high value, differentiated solutions to a diverse set of growing end markets. For the quarter, we reported revenue of $236 million, above the midpoint of our guidance range, and flat from the year-ago period as strong sales into the ear and IoT markets, and solid demand for precision devices were offset by continued soft trends in mobile. EPS of $0.38 was in line with our expectation.

第三季度，我們繼續在向多樣化的不斷增長的終端市場提供高價值、差異化解決方案的策略方面取得紮實進展。我們報告的本季營收為 2.36 億美元，高於我們指導範圍的中點，與去年同期持平，因為耳機和物聯網市場的強勁銷售以及對精密設備的強勁需求被持續疲軟的趨勢所抵消。的。每股收益 0.38 美元符合我們的預期。

In our audio segment, Q3 revenue was down 3% from the year-ago period due to softer demand for high-end handsets in China that leverage our MEMS microphones and intelligent audio solutions, largely offset by record sales of microphones and increasing shipments of balanced armature speakers into the ear and IoT markets.

在我們的音訊領域，由於中國對利用我們的MEMS 麥克風和智慧音訊解決方案的高階手機的需求疲軟，第三季營收較去年同期下降了3%，但很大程度上被麥克風銷售創紀錄和均衡器出貨量的增加所抵消。電樞揚聲器進入耳朵和物聯網市場。

In the precision device segment, sales were up 13% from the year-ago period due to continued demand for our differentiated products across multiple end markets and a tuck-in acquisition.

在精密設備領域，由於多個終端市場對我們差異化產品的持續需求以及一次收購，銷售額年增 13%。

Q3 sales in audio continues to highlight the benefit of our diversified portfolio of solutions for the mobile, ear, and IoT markets. In mobile, worldwide shipments of smartphones served as a headwind for our audio business in Q3. Citi now estimates the smartphone shipments in North America will be down 5% in 2019 versus the prior year and down 9% in China. We see these downward trends to be even more pronounced for high-end smartphones. That said, at our largest customer we experienced stable mobile trends in Q3 and are seeing year-over-year growth in this OEM's nonmobile platforms.

第三季音訊銷售持續凸顯了我們針對行動、耳朵和物聯網市場的多元化解決方案組合的優勢。在行動領域，智慧型手機的全球出貨量成為我們第三季音訊業務的阻力。花旗目前預計 2019 年北美智慧型手機出貨量將比前一年下降 5%，中國智慧型手機出貨量將下降 9%。我們認為高階智慧型手機的下降趨勢更為明顯。也就是說，在我們最大的客戶中，我們在第三季度經歷了穩定的行動趨勢，並且看到該 OEM 的非行動平台較去年同期成長。

Though this OEM's mobile business is expected to be down year-over-year we anticipate full-year revenue growth from this customer in 2019 given our increasing sales to their ear, IoT and computing applications, with higher-value microphone solutions. Sales to Chinese OEMs were lower than the year-ago period and while we are seeing weakness in this market, the positive macro trends continue to be favorable for our audio solutions.

儘管該 OEM 的行動業務預計將同比下降，但鑑於我們透過更高價值的麥克風解決方案對他們的耳朵、物聯網和計算應用的銷售不斷增加，我們預計 2019 年該客戶的全年收入將增長。對中國原始設備製造商的銷售額低於去年同期，雖然我們看到該市場疲軟，但積極的宏觀趨勢繼續有利於我們的音訊解決方案。

I am increasingly optimistic that the mobile market will start to grow again as our customers begin to roll out 5G phones in 2020. We see an opportunity to increase content per device and improve performance through multimic adoption and higher performance mics including the transition from analog to digital. In addition, we continue to discuss moving more processing to the edge of the network with our customers in mobile, which represents an opportunity for our edge processors.

隨著我們的客戶在 2020 年開始推出 5G 手機，我越來越樂觀地認為行動市場將再次開始成長。我們看到了透過採用多麥克風和更高性能的麥克風（包括從類比到數位的過渡）來增加每台設備的內容並提高性能的機會。此外，我們繼續與行動客戶討論將更多處理轉移到網路邊緣，這對我們的邊緣處理器來說是一個機會。

We are very pleased to build on the success we see in the mobile market with the recent launch of a customer's flagship handset. It uses our MEMS microphones and are the first handsets to leverage our quad-core audio edge processor to enable context-aware audio applications and exciting new nonaudio features. This customer chose to run these complex algorithms on our open DSP platform due to its high performance at very low power.

我們很高興最近推出了客戶的旗艦手機，以我們在行動市場上的成功為基礎。它使用我們的 MEMS 麥克風，是首款利用我們的四核心音訊邊緣處理器來實現上下文感知音訊應用和令人興奮的新非音訊功能的手機。該客戶選擇在我們的開放式 DSP 平台上運行這些複雜的演算法，因為該平台具有高效能和極低的功耗。

In addition, processing has been moved from the cloud to the edge of the network and many applications that have historically had only been available when connected to the internet can now work offline. Our platform also allows for complex actions with no latency and because it processes audio locally, it keeps more of the consumer's information private.

此外，處理已從雲端轉移到網路邊緣，許多以前只能在連接到互聯網時才可用的應用程式現在可以離線工作。我們的平台還允許無延遲地執行複雜的操作，並且由於它在本地處理音頻，因此可以保護更多消費者資訊的私密性。

This is one of several platforms we expect to be introduced over the next several years with advanced edge processing capabilities. I continue to believe that intelligent audio is an important growth opportunity for us that's synergistic with our acoustic products.

這是我們預計在未來幾年推出的幾個具有先進邊緣處理功能的平台之一。我仍然相信智慧音訊對我們來說是一個重要的成長機會，它與我們的聲學產品具有協同作用。

Moving to ear and IoT, we were pleased to see Amazon launch their new Echo Buzz, the company's first true wireless headphones. These headphones use six MEMS microphones and four balanced armature speakers to enable better voice control, active noise reduction, and superior audio quality. Balanced armatures are seeing adoption in consumer wireless headphones because they are the world's smallest speakers, delivering stunning clarity and twice the battery life at a fraction of the size and weight of traditional dynamic speakers. In addition to Amazon, Anker recently launched a new true wireless headset leveraging our balanced armature drivers to deliver crisp treble with full and rich bass. We'll discuss more BA wins in the future as these products are launched.

轉向耳機和物聯網，我們很高興看到亞馬遜推出了新的 Echo Buzz，這是該公司首款真正的無線耳機。這些耳機採用六個 MEMS 麥克風和四個平衡電樞揚聲器，可實現更好的語音控制、主動降噪和卓越的音訊品質。平衡電樞在消費性無線耳機中廣泛採用，因為它們是世界上最小的揚聲器，可提供令人驚嘆的清晰度和兩倍的電池壽命，而尺寸和重量僅為傳統動態揚聲器的一小部分。除了亞馬遜之外，Anker 最近還推出了一款新型真無線耳機，利用我們的平衡電樞驅動器提供清脆的高音和飽滿豐富的低音。隨著這些產品的推出，我們將在未來討論更多 BA 的勝利。

In IoT, Amazon launched new products including Echos, Dots, and the Loop, all using MEMS microphones. Beyond Amazon, nearly every consumer device you can think of from smart TVs, smartwatches, wearables, to cars and other devices inside and outside the home are adopting voice-enabled applications with the use of MEMS microphones. Knowles is well positioned to enable voice control across a diverse set of end market applications. We are diversifying our business beyond mobile and the investments we are making in growth markets like ear and IoT are enabling us to deliver solid financial performance in spite of a weak handset market.

在物聯網領域，亞馬遜推出了 Echos、Dots 和 Loop 等新產品，兩者都採用 MEMS 麥克風。除了亞馬遜之外，幾乎所有你能想到的消費設備，從智慧電視、智慧手錶、可穿戴設備，到汽車和家庭內外的其他設備，都在採用使用 MEMS 麥克風的語音應用程式。Knowles 處於有利地位，可在各種終端市場應用中實現語音控制。我們正在將業務多元化到行動以外的領域，並且在耳機和物聯網等成長市場的投資使我們能夠在手機市場疲軟的情況下實現穩健的財務表現。

In our precision device segment, we continue to see sales growth from our high-performance capacitors and mmWave RF solutions for a diverse set of end markets. This business remains essential to our ability to increase exposure to fast growing end markets and enhance shareholder value.

在我們的精密設備領域，我們的高性能電容器和毫米波射頻解決方案針對各種終端市場的銷售持續成長。這項業務對於我們擴大快速成長的終端市場和提高股東價值的能力仍然至關重要。

Demand for our high-performance capacitors remains robust in the defense and med tech end markets. Despite a broader slowdown in our industrial markets, our differentiated solutions have seen sustained demand achieved through a combination of ceramic leadership, customization, high-reliability production, and a skilled sales and application team that has built close relationships with our key customers to solve problems for their mission-critical applications.

國防和醫療技術終端市場對我們高性能電容器的需求仍然強勁。儘管我們的工業市場普遍放緩，但我們的差異化解決方案透過陶瓷領先地位、客製化、高可靠性生產以及熟練的銷售和應用團隊的結合實現了持續的需求，該團隊與我們的主要客戶建立了密切的關係以解決問題用於他們的關鍵任務應用程式。

In mmWave RF solutions, we are seeing solid demand from the defense end markets for radar systems. And we recently were awarded a multimillion-dollar contract with BAE for Lockheed Martin's F35 Joint Strike Fighter program. We are also starting to ship solutions into the 5G mmWave base stations which will serve as a large growth opportunity for us over the next several years.

在毫米波射頻解決方案中，我們看到國防終端市場對雷達系統的強勁需求。最近，我們與 BAE 簽訂了一份價值數百萬美元的洛克希德馬丁公司 F35 聯合攻擊戰鬥機專案合約。我們也開始向 5G 毫米波基地台提供解決方案，這將在未來幾年為我們帶來巨大的成長機會。

While we are at the very early stages of the mmWave 5G rollout, we see continued growth in military demand and expect revenue from mmWave RF solutions to grow over $30 million in 2019 from less than $20 million in 2018.

雖然我們正處於毫米波 5G 推出的早期階段，但我們看到軍事需求持續增長，並預計毫米波射頻解決方案的收入將從 2018 年的不到 2000 萬美元增長到 2019 年將超過 3000 萬美元。

With that, I'll turn it over to John to expand on our financial results and provide our guidance for the fourth quarter. John.

接下來，我將把它交給約翰來詳細介紹我們的財務表現並提供我們對第四季度的指導。約翰。

Thanks, Jeff. We reported third quarter revenues of $236 million, above the midpoint of our guidance range and flat from the year-ago period. Record microphone shipments in the ear and IoT markets and continued growth in precision devices was offset by lower shipments of microphone and intelligent audio solutions into the smartphone market.

謝謝，傑夫。我們報告第三季營收為 2.36 億美元，高於我們指引範圍的中點，與去年同期持平。耳內和物聯網市場的麥克風出貨量創歷史新高，精密設備的持續成長被智慧型手機市場的麥克風和智慧音訊解決方案出貨量下降所抵消。

Audio revenues of $194 million were down 3% from the year-ago period due to weaker demand for high-end smartphones in China that use our MEMS microphones and intelligent audio solutions. These declines were largely offset by increased shipments of microphones and balanced armature speakers into the ear and IoT markets.

由於中國對使用我們的 MEMS 麥克風和智慧音訊解決方案的高階智慧型手機的需求減弱，音訊收入為 1.94 億美元，較去年同期下降 3%。這些下降在很大程度上被耳機和物聯網市場的麥克風和平衡電樞揚聲器出貨量的增加所抵消。

Hearing health sales were up slightly from the year-ago period. The precision device segment delivered revenues of $42 million, up 13% from the third quarter of 2018 which was the result of 8% organic growth driven by strong demand for high-performance capacitors in the defense and medtech end markets, and an acquisition completed early in the first quarter of 2019.

聽力健康產品銷售額較去年同期略有成長。精密設備部門營收 4,200 萬美元，較 2018 年第三季成長 13%，這是由於國防和醫療技術終端市場對高性能電容器的強勁需求推動了 8% 的有機成長，以及提前完成的收購2019年第一季。

Third quarter gross profit margins were 40.1%, within our guidance range and up 170 basis points from the year-ago period, driven by favorable product mix within audio, specifically higher microphone sales to the ear and IoT markets. Precision device segment margins were flat year-over-year as improved pricing on high-performance capacitors was offset by higher raw material costs and increased manufacturing capacity to support future growth in our mmWave filtering solutions.

第三季毛利率為 40.1%，在我們的指導範圍內，比去年同期增長 170 個基點，這得益於音頻領域有利的產品組合，特別是耳麥和物聯網市場的麥克風銷量增加。精密設備細分市場的利潤率同比持平，原因是高性能電容器定價的提高被原材料成本上漲和製造能力的提高所抵消，以支持毫米波濾波解決方案的未來增長。

Operating expenses in the quarter were $51 million, down 2% from the year-ago period due to reductions in R&D spending within the audio segment. For the quarter, adjusted EBIT margin was 19%, at the midpoint of our guidance range, up 250 basis points from the year-ago period on higher gross profit margins and reduced operating expense. EPS was $0.38, at the midpoint of our guidance range and up 12% over the third quarter of 2018. Further information including a detailed reconciliation of GAAP to non-GAAP results is provided in the financial tables of today's press release and can also be found on our website at Knowles.com.

由於音訊領域研發支出減少，本季營運支出為 5,100 萬美元，年減 2%。本季度，調整後息稅前利潤率為 19%，處於我們指導範圍的中點，比去年同期增長 250 個基點，原因是毛利率提高和營運費用減少。每股收益為 0.38 美元，處於我們指引範圍的中點，比 2018 年第三季成長 12%。今天新聞稿的財務表格中提供了更多信息，包括 GAAP 與非 GAAP 業績的詳細調節表，也可以在我們的網站 Knowles.com 上找到。

Now, I'll turn to our balance sheet and cash flow. Cash and cash equivalents totaled $70 million at the end of Q3. For the third quarter, cash generated from operations was $40 million, at the low end of our guidance range due to timing of receivable collections within the year. Capital spending was $8 million in the quarter. Also during the quarter we repaid all outstanding bank borrowings.

現在，我將轉向我們的資產負債表和現金流。截至第三季末，現金和現金等價物總額為 7,000 萬美元。第三季度，由於應收帳款收款時間安排在年內，營運產生的現金為 4,000 萬美元，處於我們指導範圍的下限。本季資本支出為 800 萬美元。此外，在本季度，我們償還了所有未償還的銀行借款。

Moving to the fourth quarter, we expect total company revenue to be between $225 million and $250 million. Revenue from the audio segment is expected to be between $185 million and $200 million, up 4% from Q4 2018 due to higher shipments of mics into ear and IoT applications, partially offset by weaker handset demand in China.

進入第四季度，我們預計公司總收入將在 2.25 億美元至 2.5 億美元之間。音訊領域的營收預計在 1.85 億美元至 2 億美元之間，較 2018 年第四季成長 4%，原因是入耳式和物聯網應用的麥克風出貨量增加，部分被中國手機需求疲軟所抵銷。

Precision device revenue is expected to be between $40 million and $50 million, up 16% over prior-year levels, driven by organic growth across telecom, defense and medtech markets and the impact of an acquisition which was completed earlier this year. We project gross profit margins for the fourth quarter to be approximately 39.5% to 42.5%, down more than 160 basis points from the year-ago period due to a supplier credit recorded in Q4 2018 that will not repeat.

受電信、國防和醫療技術市場有機成長以及今年稍早完成的收購影響的推動，精密設備收入預計將在 4,000 萬美元至 5,000 萬美元之間，比上年水準成長 16%。我們預計第四季度的毛利率約為 39.5% 至 42.5%，較去年同期下降超過 160 個基點，原因是 2018 年第四季記錄的供應商信用不會重複。

R&D spending in Q4 is expected to be between $20 million and $22 million, down $2 million from prior-year levels due to optimization of R&D spending within the audio segment. We are projecting selling and administrative expense to be between $29 million and $31 million, up $1 million from the year-ago period due to higher anticipated legal expense.

由於音訊領域研發支出的優化，第四季的研發支出預計在 2,000 萬美元至 2,200 萬美元之間，比去年水準減少 200 萬美元。由於預期法律費用增加，我們預計銷售和管理費用將在 2,900 萬至 3,100 萬美元之間，比去年同期增加 100 萬美元。

We are projecting adjusted EBIT margin for the quarter to be in the range of 19% to 21% and expect EPS to be within a range of $0.37 to $0.43 per share. This assumes weighted average shares outstanding during the quarter of 95.7 million on a fully diluted basis. We are forecasting an effective tax rate of 13% to 16% for the quarter. Please refer to our press release for a GAAP to non-GAAP reconciliation.

我們預計本季調整後的息稅前利潤率將在 19% 至 21% 之間，每股收益將在 0.37 美元至 0.43 美元之間。假設本季完全稀釋後的加權平均流通股為 9,570 萬股。我們預計本季的有效稅率為 13% 至 16%。請參閱我們的新聞稿，以了解 GAAP 與非 GAAP 調整表。

For the fourth quarter, we expect cash generated from operations to be between $60 million and $70 million, and capital spending to be between $10 million and $20 million. Full-year 2019 capital spending is now expected to be slightly below 6% of revenues. For the full year, revenue growth is expected to be between 3% to 4% with gross profit margins near 40%. R&D and SG&A are expected to be approximately 10% and 14% of revenues respectively. Lastly, we're forecasting an effective tax rate to be between 13% and 17% for the full year.

對於第四季度，我們預計營運產生的現金將在 6,000 萬美元至 7,000 萬美元之間，資本支出將在 1,000 萬美元至 2,000 萬美元之間。目前預計 2019 年全年資本支出將略低於收入的 6%。預計全年營收成長3%至4%，毛利率接近40%。研發和銷售、一般管理費用預計分別約佔收入的 10% 和 14%。最後，我們預測全年有效稅率在 13% 至 17% 之間。

I'll now turn the call back over to Jeff for closing remarks and then we'll move to the Q&A portion of the call. Jeff?

現在，我將把電話轉回傑夫進行結束語，然後我們將進入電話的問答部分。傑夫？

Thanks, John. Our Q3 results and our Q4 guidance reaffirms our strategy to invest in high value, differentiated solutions and diversify our end markets to deliver shareholder value. I'm pleased with the continued progress we've made to increase our exposure to growth markets like ear, IoT, 5G infrastructure and edge processing. We expect that revenues from nonmobile markets will represent over 70% of our total company revenue in 2019, growing at greater than 10% from the prior year with above corporate average gross margins. For 2019 we expect our full-year company revenue to increase by approximately 4% and EPS to increase by 12%.

謝謝，約翰。我們第三季的業績和第四季的指引重申了我們投資高價值、差異化解決方案和實現終端市場多元化以實現股東價值的策略。我對我們在增加對耳朵、物聯網、5G 基礎設施和邊緣處理等成長市場的接觸方面所取得的持續進展感到高興。我們預計 2019 年非行動市場的收入將占公司總收入的 70% 以上，較上年增長 10% 以上，毛利率高於公司平均水平。2019年，我們預計公司全年營收將成長約4%，每股盈餘將成長12%。

As we look towards 2020, our company remains uniquely positioned across the markets we serve. In audio, macro trends around better acoustic performance and edge processing remain positive and are enabling us to increase our content per device. In precision devices, we continue to deliver strong revenue and earnings growth, both organically and through tuck-in acquisitions. With our strong positions in core markets, coupled with the investments we are making in growth products, I am increasingly confident that we can drive continued revenue growth with strong operating leverage in 2020.

展望 2020 年，我們公司在我們所服務的市場中仍然保持獨特的地位。在音訊領域，圍繞著更好的聲學性能和邊緣處理的宏觀趨勢仍然是積極的，並使我們能夠增加每台設備的內容。在精密設備領域，我們繼續透過有機方式和透過收購實現強勁的收入和獲利成長。憑藉我們在核心市場的強勢地位，加上我們對成長型產品的投資，我越來越有信心我們能夠在 2020 年透過強大的營運槓桿推動收入持續成長。

Operator, we can now take questions.

接線員，我們現在可以提問了。

(Operator Instructions) Your first question comes from the line of Sujeeva Desilva from ROTH Capital.

（操作員說明）您的第一個問題來自羅斯資本的Sujeeva Desilva。

Congratulations on the progress here. Just a couple of questions on the end markets. Do you still expect in the ear and IoT part of the business that IoT would be stable relatively, and ear would be the growth driver? Is that still the expectation?

恭喜這裡的進展。只是關於終端市場的幾個問題。您是否仍預期耳朵和物聯網部分的業務中，物聯網會相對穩定，而耳朵會成為成長動力？這仍然是期望嗎？

Yes, good question. I would say generally speaking, I think IoT will still be up but nowhere near the rate of ear this year. You know, that's kind of been flipping and flopping from year-to-year. I would just make the comment, I think we've talked about this in past calls, that in 2016, the ear and IoT revenue in our mic business was about 7% of the revenue in mics. This year, it's going to come in over 30% of the revenue this year, will actually -- in mics will be in ear and IoT. Yes, I would say the majority of growth is coming from ear but there still is growth in IoT.

是的，好問題。我想說，一般來說，我認為物聯網仍然會成長，但遠不及今年的耳朵速度。你知道，這種情況年復一年地反覆無常。我只想發表評論，我想我們在過去的電話會議中已經討論過這一點，2016 年，我們麥克風業務中的耳機和物聯網收入約佔麥克風收入的 7%。今年，它將佔今年收入的 30% 以上，實際上，在耳機和物聯網領域。是的，我想說大部分成長來自耳朵，但物聯網仍然有成長。

Okay. And then congratulations on the win at Amazon. The wins, content-wise. Should we think the content you described for Amazon there is a typical headset going forward? Is that a premium headset? How can we compare the Amazon content to what may be the typical true wireless headset content for you guys?

好的。然後恭喜您在亞馬遜獲勝。內容方面的勝利。我們是否應該認為您為亞馬遜描述的內容是一款典型的未來耳機？這是一款高級耳機嗎？我們如何將亞馬遜的內容與你們認為典型的真無線耳機內容進行比較？

Yes. I mean I think that's a little bit of a tougher question to answer entirely, to this day, so let me just take it in pieces. I would say on the balanced armature side, I would say this is probably premium. Two balanced armatures per ear, we're probably talking premium. On the microphones, when you have three per ear, I would say it's premium today.

是的。我的意思是，我認為這個問題直到今天都很難完全回答，所以讓我把它分成幾個部分。我想說，在平衡電樞方面，我想說這可能是溢價。每隻耳朵有兩個平衡電樞，我們可能在談論優質。在麥克風方面，當你每隻耳朵有三個麥克風時，我會說今天它是優質的。

But I think if you look at the design pipeline and what people are talking about, having three microphones per ear is probably going to become pretty standard in the longer term. And that's -- you know, mainly the third mic is being added on the inside of the ear for active noise cancellation. With the two microphones on the outside primarily to improve voice communication, improve anything you're doing in terms of with voice recognition.

但我認為，如果你看看設計流程和人們正在談論的內容，從長遠來看，每隻耳朵配備三個麥克風可能會成為相當標準的做法。那就是——你知道，主要是在耳朵內側添加第三個麥克風，以實現主動降噪。外部的兩個麥克風主要用於改善語音通信，改善您在語音識別方面所做的任何事情。

Okay. And then one quick question on the IA. I didn't hear if there was an update on the 20 million, 25 million expectation for '19. Is that still the range you're expecting?

好的。然後是一個關於 IA 的快速問題。我沒有聽說 19 年 2000 萬、2500 萬的預期是否有更新。這仍然是您期望的範圍嗎？

Yes. I would say it's going to be tough for us to get to the low end of that range. But with that said, we're pretty excited about the products, the handsets, that were introduced in the last week that are using our quad-core DSP. I think this is like, a pretty important moment for us from the perspective of all the things that you can do with our quad-core DSP. Some of it's audio and actually now some of it's nonaudio. So we're pretty excited about this opportunity and we're pretty excited about 2020.

是的。我想說，我們很難達到這個範圍的低端。儘管如此，我們對上週推出的使用我們四核心 DSP 的產品（手機）感到非常興奮。我認為，從使用我們的四核心 DSP 可以做的所有事情的角度來看，這對我們來說是一個非常重要的時刻。其中一些是音頻，實際上現在有些是非音頻。因此，我們對這個機會感到非常興奮，對 2020 年也感到非常興奮。

Your next question comes from the line of Christopher Rolland from Susquehanna.

你的下一個問題來自薩斯奎哈納的克里斯多福羅蘭。

Good execution on the quarter here. In terms of the balanced armature speaker market, perhaps you can talk about what those revenues were in 3Q and your expectation for 4Q. Also perhaps if you can discuss, I know you said you'd talk about them when they were released. But just generally what that pipeline looks like for you guys, and how it sizes up to that roughly I guess, call it $90 million extra ear opportunity that you guys highlighted in your Analyst Day?

本季執行情況良好。就平衡電樞揚聲器市場而言，也許您可以談談第三季的收入是多少以及您對第四季的預期。另外，也許如果你可以討論，我知道你說過當它們被釋放時你會談論它們。但一般來說，這條管道對你們來說是什麼樣的，以及它的規模如何大致達到我猜想的那樣，稱之為你們在分析師日強調的 9000 萬美元的額外耳朵機會？

Yes. So let me start by just breaking out. We have a pretty robust balanced armature business overall to begin with. And that's divided up between our hearing health market, which you know, we do very well in, and then there's balanced armature, what I would call to the premium -- the really premium headphone market. You know, the guys that are in the $300, $400, $500 range. That's a pretty robust business for us.

是的。那麼就讓我從爆發開始吧。首先，我們整體上擁有相當強勁的平衡電樞業務。這分為我們的聽力健康市場，你知道，我們在這個市場做得很好，然後是平衡電樞，我稱之為高端市場——真正的高端耳機市場。你知道，那些價格在 300 美元、400 美元、500 美元範圍內的人。這對我們來說是一項相當強勁的業務。

Now, as we start talking about the true wireless opportunity, as I said in the past, if you look at these true wireless headsets they are looking more and more like a hearing aid. I mean they are looking more and more like that. Now that being said, we are kind of limited in terms of I would say the capacity now and probably until into mid -- into late Q2 is when all that capacity will be going online. And that's when we would really expect to see the revenue from balanced armature in the true wireless market, start to accelerate.

現在，當我們開始談論真正的無線機會時，正如我過去所說的，如果你看看這些真正的無線耳機，它們看起來越來越像助聽器。我的意思是他們看起來越來越像那樣了。話雖這麼說，我們現在的容量有限，可能要到第二季末，所有容量才會上線。那時我們確實希望看到真正的無線市場中平衡電樞的收入開始加速。

So we're not going to break out the exact number at this moment for true wireless. It's relatively small. I'm not going to say it's very large. But what I would say is we have a lot of interest. We have a lot of customers are interested in moving forward. And I think we're preparing for the back half of next year is when we really see the growth is going to come.

因此，我們目前不會透露真正無線技術的確切數字。它相對較小。我不會說它很大。但我想說的是我們有很大的興趣。我們有很多客戶有興趣繼續前進。我認為我們正在為明年下半年做準備，屆時我們將真正看到成長的到來。

Great. And then on precision devices, it was maybe a tad bit softer than I expected. I think you guys talked about pricing on high-performance capacitors there. Obviously, the MLCC market has moved through a super bubble, obviously lower-end products there. But maybe pricing starting to firm there. Is this just a lag there on this side? Do you expect any more changes in pricing? And then within precision devices, I don't know if you said it or not. Your 5G filters. What's the timing on when you might ship your first?

偉大的。然後在精密設備上，它可能比我預期的要軟一些。我想你們討論了高性能電容器的定價。顯然，MLCC市場已經經歷了超級泡沫，明顯是低階產品存在。但也許那裡的定價開始堅挺。這只是這邊的延遲嗎？您預計定價還會有更多變化嗎？然後在精密設備方面，我不知道你是否說過。您的 5G 過濾器。您第一次出貨的時間是什麼時候？

So first, let me take the first question. I would say it was a little softer than we expected going into the quarter. And as I kind of said in my script, the industrial market, we have seen a little bit of a slowdown. But that, with that being said, we still had, I want to say it was a 13% growth overall year-over-year. So not too shabby still. So we were expecting a little bit more. As I looked at Q4, I think it's a little bit better than what we had in Q3 in terms of the year-over-year growth as well as it's a pretty good step up in terms of the sequential as well.

首先，讓我回答第一個問題。我想說的是，本季的情況比我們預期的要軟一些。正如我在劇本中所說，工業市場，我們看到了一點放緩。但話雖如此，我想說的是，我們仍然實現了 13% 的同比增長。所以還不算太破舊。所以我們期待更多一點。當我查看第四季度時，我認為就同比增長而言，比第三季度要好一些，並且就環比而言也是一個相當不錯的進步。

So I would say that we're seeing some weakness in industrial and that's -- I would say that general marketplace that you kind of referred to. But still, when I say weakness, this is not like it's down significantly. It's still growing, just modestly versus it was growing pretty quickly in the past. Now you asked, your second question was related to the 5G mmWave base stations. We are already shipping into 5G mmWave base stations for production units. So we started shipping for that. And we expect that will continue.

所以我想說，我們看到了工業領域的一些弱點，那就是——我想說的是你提到的一般市場。但當我說疲軟時，這並不是說它顯著下降。它仍在增長，只是與過去增長相當快相比，增長幅度不大。現在你問的第二個問題與5G毫米波基地台有關。我們已經將生產單元運送到 5G 毫米波基站。所以我們開始運送。我們預計這種情況將會持續下去。

I think what we've kind of said, and we'll continue to say this, is the military demand continues to be very strong in this space. And the design activity around the 5G mmWave base stations still is strong. Although I think we're seeing a small push-out to the right in terms of the actual demand for the 5 mmWave base stations. But we are shipping into production units right now.

我認為我們已經說過並且我們將繼續這樣說，這一領域的軍事需求仍然非常強勁。圍繞 5G 毫米波基站的設計活動仍然很活躍。儘管我認為就 5 毫米波基地台的實際需求而言，我們看到了向右的小幅推出。但我們現在正在運送到生產單位。

Your next question comes from the line of Anthony Stoss from Craig Hallum.

您的下一個問題來自 Craig Hallum 的 Anthony Stoss。

My congrats as well. You're one of the few chip companies that are actually growing this year, year over year. Two-part question. If you were to strip away just the IoT and ear segment, what kind of growth rate do you think you could see in 2020 or even in the immediate term? And then now that iFixit has got the Google Pixel 4 teardown showing your DSP, love to hear your thoughts. And I know, Jeff, you mentioned you've got design traction for 2020. Can you quantify that at all?

我也恭喜你。你們是今年真正成長、逐年成長的少數晶片公司之一。兩部分的問題。如果只剔除物聯網和耳機領域，您認為 2020 年甚至短期內可以看到什麼樣的成長率？現在 iFixit 已經獲得了展示您 DSP 的 Google Pixel 4 拆解，很高興聽到您的想法。我知道，傑夫，你提到你已經獲得了 2020 年的設計吸引力。你能量化一下嗎？

Yes. So let me take the first question. I'm not really sure I understand the first question. Are you asking me about the mobile market for microphones versus the ear and IoT for microphones? Is that what you're asking me about?

是的。那麼讓我來回答第一個問題。我不太確定我是否理解第一個問題。您是在問我麥克風的行動市場與麥克風的耳朵和物聯網市場嗎？你問我的就是這個嗎？

Nonmobile ear and IoT.

非移動耳朵和物聯網。

Nonmobile ear and IoT, we would expect to grow again in 2020. I would say what's changed is, I'm cautiously optimistic about the mobile market. I mean it's been a pretty big headwind for us for the full year 2019, from the perspective, you know, we know what happened at the largest customer earlier in the year. There's been weakness, a fair amount of weakness in China.

非行動耳機和物聯網，我們預計 2020 年將再次成長。我想說的是，改變的是，我對行動市場持謹慎樂觀的態度。我的意思是，這對我們 2019 年全年來說是一個相當大的阻力，從這個角度來看，我們知道今年早些時候最大的客戶發生了什麼。中國一直存在弱點，相當程度的弱點。

But I think what we're starting to see is that as 5G starts to roll out in a bigger way next year, there's some 5G this year but realistically it's more next year. Even if we can get this, which we're hopeful of, to a flat market year-over-year, it no longer becomes a headwind to our business. And that's why I think we highlighted, Tony, that about -- we have over 70% of our business is nonmobile now. And that 30% was a headwind in 2019. But we think it could be flattish in 2020, which would be really great for us to see that number being flat.

但我認為我們開始看到的是，隨著明年 5G 開始大規模推廣，今年會有一些 5G，但實際上明年會更多。即使我們能夠實現我們所希望的，市場同比平穩，它也不再成為我們業務的阻力。這就是為什麼我認為我們強調，托尼，我們現在有超過 70% 的業務是非行動業務。而這 30% 在 2019 年是一個阻力。但我們認為 2020 年這一數字可能會持平，如果我們看到這個數字持平，那就太棒了。

Second question you asked me about the quad-core DSP, let me just make a couple more comments on this. You know, just generally speaking. We're pretty excited about this and I want to just kind of lay this out for a moment. It just may take a moment, Tony. But think about what they're doing with the device. First, where you need real-time processing, like actually like, no latency in processing, where you need the device to be always-on, right. And then there's a combination of what I would call pre-processing before it goes -- keeping the AP off before it -- the AP or the application processor gets turned on. But there's also pieces where the full application is running on our chip now.

你問我關於四核心DSP的第二個問題，讓我對此再發表一些評論。你知道，只是一般而言。我們對此感到非常興奮，我想簡單介紹一下。這可能需要一點時間，托尼。但想想他們正在使用該設備做什麼。首先，你需要即時處理，就像實際上一樣，處理過程中沒有延遲，你需要設備永遠在線，對吧。然後是我所說的預處理的組合 - 在 AP 或應用程式處理器打開之前保持 AP 關閉。但現在也有一些完整的應用程式正在我們的晶片上運行。

And so let me give you a couple of applications. One you've heard of, is the keyword detection. You've heard of that. That's running on this device. Another one is like, echo cancellation and barge-in, running on this device. So if you have music on, and you want to barge into the device, it can do that, right. The third thing which is kind of interesting is there are other sensors in this platform that need real-time -- need always-on power that are now being processed through our device as well. And this just has to do with the gesture recognition.

讓我給你幾個應用程式。您聽說過的一種方法是關鍵字檢測。你聽過。正在該設備上運作。另一種是在該設備上運行的迴聲消除和打斷功能。因此，如果您打開了音樂，並且想要插入設備，它可以做到這一點，對吧。第三件有趣的事情是這個平台上還有其他需要即時的感測器——需要始終開啟的電源，現在也透過我們的裝置進行處理。這與手勢辨識有關。

So what you're starting to see is, is that customers are starting to say to themselves is, yes, audio has to be real-time. Yes, audio has to be always-on. But there's other sensors that need it to, and this device is pretty valuable for this device. As far as the design pipeline, we're working really, really hard here, Tony, for next year to continue this momentum we're having in the back half of the year on the design side. And I think that's kind of where I'd leave it for right now.

所以你開始看到的是，客戶開始對自己說，是的，音訊必須是即時的。是的，音訊必須始終開啟。但還有其他感測器需要它，而這個設備對於這個設備來說非常有價值。就設計流程而言，托尼，我們在這裡非常非常努力地工作，明年將繼續保持今年下半年設計的勢頭。我想這就是我現在要保留的地方。

Can I follow up on that? Is there any quantification on the amount you're saving the device maker from handling everything in the handset itself versus hitting the cloud? Is there a cost savings, have you quantified any of that and do they recognize that?

我可以跟進嗎？與處理雲端中的所有內容相比，您為設備製造商節省了多少費用？是否可以量化？是否可以節省成本？您是否對此進行了量化？他們是否認識到這一點？

Yes. I think that's pretty hard to quantify. I think there's a couple things. I would say that that's kind of like I think a secondary from their perspective. They see the cloud as not being taxed as much. I think they're focused on this idea of real-time processing with no latency, having multiple sensors including microphones being one of them on all the time for contextual awareness and do a lot of different things. And then the third is, is that ultimately I think you if look at this, the real thought players, they want to have more things done locally from the perspective also of privacy.

是的。我認為這很難量化。我認為有幾件事。我想說，從他們的角度來看，這有點像是我認為的次要因素。他們認為雲端運算並沒有被課稅那麼多。我認為他們專注於無延遲即時處理的想法，擁有多個感測器（包括麥克風）始終處於工作狀態，以實現上下文感知並執行許多不同的操作。第三個是，最終我認為如果你看看這個，真正有想法的玩家，他們希望從隱私的角度在本地完成更多的事情。

Your next question comes from the line of Bob Labick from CJS Securities.

您的下一個問題來自 CJS 證券的 Bob Labick。

Just wanted to stick with BA for a minute here. Can you talk about your current manufacturing. And given the growth in ear that's just starting and the nice win with the Echo Buds and others, how are you managing the inventory for BA and towards the -- with this growth and the path towards the automation which I think you expect in the first half of next year, to have a new automated line. Just talk about the process of the inventory management and the expected growth for this category.

只是想在這裡堅持一下 BA。能談談您目前的生產情況嗎？考慮到耳機的成長剛剛開始，以及 Echo Buds 和其他產品的出色勝利，您如何管理 BA 的庫存並朝著 — — 隨著這種增長以及我認為您首先期望的自動化之路發展明年半月，將擁有一條新的自動化生產線。只談談庫存管理的流程以及該品類的預期成長。

Sure. So I wouldn't expect in the short term that we'd have a significantly a lot more inventory to do this. I would say it's probably the opposite here is, as demand increases we're trying to balance the demands that are out there against the fact that we don't really want to have to add a lot more manual assembly in order to do this knowing, and this kind of leads, that the automation is coming online.

當然。因此，我預計短期內我們不會有更多的庫存來做到這一點。我想說，這可能是相反的，隨著需求的增加，我們正在嘗試平衡現有的需求與事實，即我們真的不想添加更多的手動組裝來做到這一點，這種線索表明自動化即將上線。

I was -- I viewed the automation this week. It's on track to be ready in the first half. And we're excited to get that installed. Because I think one thing that has come out of this, those Echo Buds for us, is it's getting a lot of, I would say, second-tier players to say hmm, this is kind of interesting. When can we start having more discussions. And so I think there's going to be a real balance here in the next six months of design wins and revenue relative to the fact that we don't really have the capacity in place to handle this yet until the back half of the year.

我這週查看了自動化。上半場有望做好準備。我們很高興能安裝它。因為我認為，對我們來說，那些 Echo Buds 帶來的一件事是，我想說，很多二線玩家都會說，嗯，這很有趣。我們什麼時候可以開始進行更多討論。因此，我認為在接下來的六個月中，設計勝利和收入將會實現真正的平衡，相對於我們直到今年下半年才真正具備處理這個問題的能力。

One thing to add, Bob, too is as Jeff said, we'll have that first automated line in place at some point in Q2. And if we see demand increasing here we'll kind of pull things forward on a second line and we could have that probably in place back late 2020.

鮑伯也需要補充一點，正如傑夫所說，我們將在第二季的某個時候建立第一條自動化生產線。如果我們看到這裡的需求增加，我們會在第二條線上推進事情，我們可能會在 2020 年底就到位。

Let me temper that. Let me temper that, though. Just saying is that the issue -- I'm just a little bit -- I want to make sure is, is that this is a brand-new design for our balanced armature, a brand-new production process. We've got to make sure it all works properly before we would order the second line.

讓我緩和一下。不過，讓我緩和一下。只是說，問題是──我只是一點點──我想確定的是，這是我們平衡電樞的全新設計，全新的生產流程。在訂購第二條生產線之前，我們必須確保一切正常。

Your next question comes from the line of Harsh Kumar from Piper Jaffray.

您的下一個問題來自 Piper Jaffray 的 Harsh Kumar。

Great job once again managing expectations and earnings in a tough environment. Jeff, I had one for you. I look at your guidance for the audio business. Compared to September numbers you're basically calling for flattish kind of trends.

在艱難的環境中再次管理預期和收益，做得很好。傑夫，我為你準備了一份。我看看你對音頻業務的指導。與 9 月的數據相比，您基本上認為趨勢是平淡的。

I know that we're going into the Christmas build and then we have Chinese New Year a little bit early this year. I believe it's January 25. So I expect kind of like a double dive, if you will, in consumer stuff including handsets. How do I think of your guidance for December audio business versus the Chinese New Year being sort of earlier this year, on top of Christmas?

我知道我們將進入聖誕節建設，然後今年我們會提前一點過農曆新年。我相信這是1月25日。因此，如果你願意的話，我預計在包括手機在內的消費產品領域將出現雙重潛水。我如何看待您對 12 月份音頻業務的指導，而不是今年早些時候聖誕節之後的農曆新年？

So I'm kind of looking at the numbers here. You know, I mean we usually have seen a dip in Q4 versus Q3. Because of that large customer that has that big ramp and it kind of tempers in the third. I would say kind of looking at the numbers. If I look at last year, we had a pretty large, sequential down in Q4 last year. And this year, it's a lot smaller this year. And you know, and again, I would say is, ear and IoT are a much larger portion of the business than they were a year ago. And to the extent that that's the case, we're not seeing as much of this downward trend in Q4.

所以我想看看這裡的數字。你知道，我的意思是我們通常會看到第四季度與第三季度相比有所下降。因為那個大客戶有那麼大的坡道，而且在第三階段有點脾氣。我想說的是看數字。如果我看看去年，我們去年第四季出現了相當大的環比下降。而今年，規模就小了許多。你知道，我想說的是，耳朵和物聯網在業務中所佔的比例比一年前大得多。就這種情況而言，我們在第四季並沒有看到這種下降趨勢。

Now I think you're starting to now move into Q1 and I'm not -- I can't -- it's really hard for me to give you a lot of guidance into Q1. But I will say this. We usually have a pretty strong build to Chinese New Year and then we have a drop-off and then we see how it resumes at the end of Q1. I guess all I would say is is that it's a little early.

現在我認為你現在開始進入第一季度，而我不是——我不能——我真的很難為你提供很多進入第一季度的指導。但我會這麼說。我們通常在農曆新年之前會有相當強勁的成長，然後會出現下降，然後我們會看到它如何在第一季末恢復。我想我想說的是現在有點早了。

My biggest concern right now is in terms of you want to talk about the audio business overall. China has been weak overall. I mean I said that in the call, that -- or in the remarks. It has been weak. And so I think we want to see how this goes up to Chinese New Year, but then I would say that's my one concern. Just overall, China's been weak, especially high-end handsets.

我現在最關心的是你想談論整個音訊業務。中國整體處於弱勢。我的意思是我在電話中、或在講話中說過。它已經很弱了。所以我想我們想看看這會如何影響農曆新年，但我想說這是我關心的問題。整體而言，中國市場表現疲軟，尤其是高階手機。

Can I -- for my follow-up, I know you probably have seen the initial order runs or order book for the Amazon headset. Have you gotten an indication of how they're thinking about ramping that -- that particular piece? Or they want to evaluate how things go through Christmas and then come back to you guys?

我可以——對於我的後續行動，我知道您可能已經看到了亞馬遜耳機的初始訂單運行或訂單簿。你是否知道他們正在考慮如何加強這特定的部分？或者他們想評估聖誕節的情況，然後再回饋給你們？

I'm going to punt on that. I mean I think you know, that -- you know, now we're talking about really specifically about a customer's product, and I think it's pretty confidential at this point, Harsh. I just really can't comment on that.

我要賭這一點。我的意思是，我想你知道，你知道，現在我們正在專門討論客戶的產品，我認為目前這是相當機密的，哈什。我真的無法對此發表評論。

Your next question comes from the line of Charlie Anderson from Dougherty.

你的下一個問題來自多爾蒂的查理·安德森。

My congrats on the strong results. The first one on BA, obviously a really strong product for you, strong product cycle here and you do get the added volume next year with the automated line. I guess I'm curious, if you could maybe just speak to some of the competitive differentiation long term. Do you expect to hold very high market share here? Do you have some -- in terms of whether manufacturing process or IP, kind of a moat. Do you expect second sources at some point, just any additional color there? And then I've got a follow-up.

我對取得的優異成績表示祝賀。BA 上的第一個，顯然對您來說是一個非常強大的產品，這裡有強大的產品週期，明年您確實會透過自動化生產線獲得額外的產量。我想我很好奇，您是否可以談談一些長期的競爭差異化。您希望在這裡佔有很高的市佔率嗎？無論是製造工藝還是智慧財產權方面，你有一些護城河嗎？您是否期望在某個時候有第二個來源，只是有任何額外的顏色？然後我有一個後續行動。

I think it's a little too early to say. I mean there is, we do have some competition in the hearing aid side today. And I think that there's no reason why that competition would be into this market if we develop it. But I also do think, is you know, we are pioneering this market. And the moat that we're building around this market is very different than the moat we have in the hearing health side. The hearing health side generally speaking is a lower volume, high-mix business. And this is going to be what we think is going to be a higher volume, lower mix business.

我認為現在說還為時過早。我的意思是，今天我們在助聽器方面確實有一些競爭。我認為，如果我們開發這個市場，那麼競爭就沒有理由發生。但我也確實認為，你知道嗎，我們正在開拓這個市場。我們圍繞著這個市場建立的護城河與我們在聽力健康方面的護城河非常不同。一般來說，聽力健康方面是一個低容量、高混合的業務。我們認為這將是一項銷量更高、混合程度更低的業務。

And that's why when we decided we wanted to go after this market, we said, we're going to redesign these products specifically for this higher volume market. And so what does that do? It allows us, number one -- and there is IP around this -- it allows us, number one, to ramp it faster when we want to. It allows it to have less labor in order to do it. It targets a much more, I would say, aggressive cost structure than we typically have had in the hearing health side.

這就是為什麼當我們決定要進入這個市場時，我們說，我們將專門針對這個更高容量的市場重新設計這些產品。那它有什麼作用呢？第一，它讓我們能夠在需要時更快地提升速度。它可以減少勞動力來完成這項工作。我想說，它的目標是比我們在聽力健康方面通常採用的成本結構更激進的成本結構。

So I think we're building a competitive moat for the commercial market, or the true wireless market, similar to what we have on the hearing health side. But with, quite frankly, similar technology but a different set of products.

因此，我認為我們正在為商業市場或真正的無線市場建立一條有競爭力的護城河，類似於我們在聽力健康方面的護城河。但坦白說，技術相似，但產品不同。

Perfect. And then for my follow-up, on the precision devices gross margin, I think there was a reference in the script to a few elevated costs there. I think one was putting in capacity, the other was maybe higher raw materials or something like that. I wonder if you maybe just kind of speak to the outlook for the next year or so and (inaudible) gross margin.

完美的。然後，對於我的後續行動，關於精密設備的毛利率，我認為腳本中提到了那裡的一些成本上升。我認為一個是投入產能，另一個可能是更高的原料或類似的東西。我想知道您是否只是談論明年左右的前景和（聽不清楚）毛利率。

I'm going to let John -- all right. I'm going to let John speak.

我會讓約翰——好吧。我要讓約翰發言。

Yes, Charlie, PD gross margins were -- they were lower than expected in Q3 and they were flat with Q3 of 2018 levels. It was really due to a little lower than anticipated production volume, so we had unfavorable fixed overhead absorption due to softening industrial end market. We also had some manufacturing inefficiencies at one of our facilities. We expect these manufacturing issues to be fully addressed early in the current quarter and expect a sequential improvement, pretty significant improvement in gross margins at PD in Q4. So I would kind of call this a one time in Q3 impact.

是的，Charlie，PD 的毛利率低於第三季的預期，並且與 2018 年第三季的水平持平。這實際上是由於產量略低於預期，因此由於工業終端市場疲軟，我們有不利的固定間接費用吸收。我們的一處工廠也存在一些生產效率低的問題。我們預計這些製造問題將在本季初得到全面解決，並預計將出現連續改善，第四季度 PD 毛利率將顯著改善。所以我認為這是第三季的一次影響。

Your next question comes from the line of Bill Peterson from JPMorgan.

您的下一個問題來自摩根大通的比爾彼得森。

Hi. This is Alex Kim dialing on behalf of Bill Peterson. I want to ask about CapEx first. So last quarter you mentioned CapEx would be about 6% to 7% of revenue and 20% of that CapEx was going to your balanced armature business. Are you sticking to that 20% number, and do you anticipate that number going up potentially to more quickly ramp BAs and to also address potential supply issues to meet the demand for BAs? And also how should we think about CapEx for 2020 and the breakdown between microphones and balanced armatures?

你好。我是亞歷克斯金 (Alex Kim) 代表比爾彼得森 (Bill Peterson) 撥打的電話。我想先問一下資本支出。因此，上個季度您提到資本支出將佔收入的 6% 到 7% 左右，其中 20% 將用於您的平衡電樞業務。您是否堅持​​ 20% 的數字，您是否預計該數字可能會上升，以更快地增加 BA 並解決潛在的供應問題，以滿足對 BA 的需求？我們還應該如何考慮 2020 年的資本支出以及麥克風和平衡電樞之間的細分？

Yes, in terms of the first question, I'd say that assumptions are still valid, what I provided earlier. We may be a little below 6% as a total company in 2019, but that amount related to the balanced armature business is unchanged at this point. It's a little early to give guidance for 2020 but I would expect as a percent of revenue, to be kind of very similar range in 2020 versus 2019, kind of around this 6% or so. But we'll provide more guidance later.

是的，就第一個問題而言，我想說我之前提供的假設仍然有效。2019 年，我們整個公司的佔比可能略低於 6%，但與平衡電樞業務相關的金額目前沒有變化。現在給出 2020 年的指導還為時過早，但我預計 2020 年將佔收入的百分比與 2019 年的範圍非常相似，大約在 6% 左右。但我們稍後會提供更多指導。

Okay. And also how should we think about OpEx for 2020, the trajectory?

好的。我們該如何看待 2020 年的營運支出軌跡？

You know, in terms of OpEx it's too early to go into 2020. But if you look at what our trend has been in OpEx over the last I'll call it three years, we've been pretty good at holding OpEx very -- to very, very modest increases. And as a result with revenue growth in the 4% to 5%, or 3% to 4% this year, higher than that last year, we've gotten very good operating leverage. I would expect the same trends to continue moving forward.

你知道，就營運支出而言，進入 2020 年還為時過早。但如果你看看過去我們營運支出的趨勢，我稱之為三年，我們一直非常擅長保持營運支出非常非常適中的成長。因此，今年的營收成長比去年高出 4% 到 5%，或 3% 到 4%，我們獲得了非常好的營運槓桿。我預計同樣的趨勢將繼續向前發展。

I think what we generally said is is that we're really trying to control SG&A on the R&D side. As John said we're going to keep that in the 11% range of sales. I still think those things hold. That's what we've been kind of trying to do over the last two years.

我認為我們通常所說的是我們確實在努力控制研發方面的銷售、管理和行政費用。正如約翰所說，我們將把這個比例保持在 11% 的銷售範圍內。我仍然認為這些事情成立。這就是我們過去兩年一直在努力做的事情。

One thing I think is important just to give a little granularity, in Q3 and Q4 of this year, we did have increased legal spend. If you take that, relating to a specific IP dispute that we're pursuing, if you take that out our year-over-year SG&A is flat if not slightly down year-over-year.

我認為有一件事很重要，只是為了提供一點粒度，在今年第三和第四季度，我們確實增加了法律支出。如果你接受這一點，與我們正在追究的特定知識產權糾紛有關，如果你排除這一點，我們的銷售管理及管理費用同比即使不是略有下降，也是持平的。

Okay. And just to clarify, you said R&D 11% of sales, and then SG&A being flat?

好的。澄清一下，您說研發佔銷售額的 11%，然後 SG&A 持平？

A little less. A little...

少一點。一點...

If you take legal spend?

如果您採取合法支出？

R&D a little less than that. We originally early in the year, were estimating 11%. It's coming down closer to 10% as we optimize R&D spending in the audio segment.

研發稍微少一點。我們最初在今年年初估計為 11%。隨著我們優化音訊領域的研發支出，這一數字下降了接近 10%。

Okay. And then SG&A flat if you take out the legal spend?

好的。如果扣除合法支出，SG&A 會持平嗎？

Correct.

正確的。

There are no further questions at this time. Mr. Mike Knapp, I turn the call back over to you.

目前沒有其他問題。麥克納普先生，我將電話轉回給您。

Great. Thanks very much for joining us today. As always, we appreciate your interest in Knowles and look forward to speaking with you on our next earnings call. Thanks and goodbye.

偉大的。非常感謝您今天加入我們。一如既往，我們感謝您對樓氏電子的興趣，並期待在我們的下一次財報電話會議上與您交談。謝謝，再見。

Ladies and gentlemen, this concludes today's conference call. Thank you for participating. You may now disconnect.

女士們、先生們，今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。