Masimo Corp (MASI) 2024 Q2 法說會逐字稿

(audio in progress) (Operator Instructions) After the speakers' remarks, there will be a question and answer session. I'm pleased to introduce Eli Kammerman, Masimo's Vice President of Business Development and Investor Relations.

（音訊進行中）（操作員指示）演講者發言後，將進行問答環節。我很高興向您介紹 Masimo 業務開發和投資者關係副總裁 Eli Kammerman。

Thank you. Hello, everyone. Joining me today are Chairman and CEO, Joe Kiani; and Executive Vice President and Chief Financial Officer, Micah Young. This call will contain forward-looking statements, which reflect management's current judgment, including certain of our expectations regarding fiscal year 2024 and 2025 financial performance.

謝謝。大家好。今天與我一起出席的有董事長兼執行長 Joe Kiani；執行副總裁兼財務長 Micah Young。本次電話會議將包含前瞻性陳述，反映管理階層目前的判斷，包括我們對 2024 財年及 2025 財年財務表現的某些預期。

However, they are subject to risks and uncertainties that could cause actual results to differ materially. Risk factors that could cause our actual results to differ materially from our projections and forecasts are discussed in detail in our periodic filings with the SEC. You will find these in the Investor Relations section of our website.

然而，它們面臨風險和不確定性，可能導致實際結果出現重大差異。我們向 SEC 定期提交的文件中詳細討論了可能導致我們的實際結果與我們的預測和預測有重大差異的風險因素。您可以在我們網站的投資者關係部分找到這些資訊。

This call will also include a discussion of the potential separation of our consumer business and a preliminary estimate of the financial impact of a potential separation. However, the estimate is being provided solely for illustrative and informational purposes. The company is currently evaluating the structure of any potential separation of its consumer business and the methods structure, timing and terms of any such potential separation are still under consideration and have not been determined, approved or finalized.

這次電話會議也將討論我們消費者業務的潛在分離，以及對潛在分離的財務影響的初步估計。然而，提供估計值僅用於說明和提供資訊的目的。該公司目前正在評估其消費者業務的任何潛在分離的結構，任何此類潛在分離的方法結構、時間和條款仍在考慮中，尚未確定、批准或最終確定。

Please refer to slides 2 and 3 of our earnings presentation for additional factors to consider in evaluating and reviewing the information relating to the potential separation of our consumer business. Also, this call will include a discussion of certain financial measures that are not calculated in accordance with generally accepted accounting principles or GAAP.

請參閱我們收益簡報的投影片 2 和投影片 3，以了解在評估和審查與我們消費者業務的潛在分離相關的資訊時需要考慮的其他因素。此外，本次電話會議也將討論某些未依照公認會計原則或公認會計準則計算的財務指標。

We generally refer to these as non-GAAP financial measures. In addition to GAAP results, these non-GAAP financial measures are intended to provide additional information to enable investors to assess the company's operating results in the same way management assesses such results.

我們通常將這些稱為非公認會計準則財務指標。除了 GAAP 業績外，這些非 GAAP 財務指標還旨在提供額外信息，使投資者能夠以管理層評估公司經營業績的方式評估公司的經營業績。

Management uses non-GAAP measures to budget, evaluate and measure the company's performance and sees these results as an indicator of the company's ongoing business performance. The company believes that these non-GAAP financial measures increased transparency and better reflect the underlying financial performance of the business.

管理階層使用非公認會計準則衡量標準來制定預算、評估和衡量公司的業績，並將這些結果視為公司持續經營績效的指標。該公司認為，這些非公認會計準則財務指標提高了透明度，並更好地反映了企業的基本財務表現。

Therefore, the financial measures we will be covering today will be primarily on a non-GAAP basis, unless noted otherwise. Reconciliation of these measures to the most directly comparable GAAP financial measures are included within the earnings release and supplementary financial information on our website.

因此，除非另有說明，我們今天討論的財務指標將主要基於非公認會計原則（Non-GAAP）。這些指標與最直接可比較的 GAAP 財務指標的調整包含在我們網站上的收益發布和補充財務資訊中。

Investors should consider all of our statements today, together with our reports filed with the SEC, including our most recent Form 10-K and 10-Q in order to make informed investment decisions. In addition to the earnings release issued today, we have posted a quarterly earnings presentation within the Investor Relations section of our website to supplement the content we will be covering this afternoon.

投資者應考慮我們今天的所有聲明，以及我們向 SEC 提交的報告，包括我們最新的 10-K 和 10-Q 表格，以便做出明智的投資決策。除了今天發布的收益報告外，我們還在網站的投資者關係部分發布了季度收益報告，以補充我們今天下午將介紹的內容。

I'll now pass the call to Joe Kiani.

我現在將把電話轉給喬·基亞尼。

Thanks, Eli. Good afternoon, and thank you for joining us for Masimo's Second Quarter 2024 earnings call. I'm happy to report that our health care revenues grew sequentially and grew 23% versus last year. Our health care business is seeing increasing momentum, driven by excellent execution by our health care team and our robust hospital census.

謝謝，伊萊。下午好，感謝您參加 Masimo 的 2024 年第二季財報電話會議。我很高興地報告，我們的醫療保健收入連續成長，比去年成長了 23%。在我們的醫療保健團隊的出色執行力和強大的醫院普查的推動下，我們的醫療保健業務呈現出不斷增長的勢頭。

We saw strong demand for Masimo sensors due to the combination of strong hospital conversions over the past few years, normalization of installations and after a tumultuous post-COVID environment, rising hospital admissions. Our sales team once again, secured a record level of new hospital conversion contracts amounting to $134 million in true incremental value for the quarter, representing a 28% increase versus last year. Not too long ago, we contracted $130 million of TI in the entire year. We believe our exceptional hospital conversion contracts point to a very bright multi-year future.

由於過去幾年醫院的強勁改造、安裝的正常化以及新冠疫情後的動盪環境和住院人數的增加，我們看到了對 Masimo 感測器的強勁需求。我們的銷售團隊再次獲得創紀錄水平的新醫院改建合同，該季度的真實增量價值達 1.34 億美元，比去年增長 28%。不久前，我們全年與TI簽訂了1.3億美元的合約。我們相信，我們出色的醫院改建合約預示著一個非常光明的多年未來。

Another standout item for the quarter was a substantial increase in gross margins. We committed to investors that this would be a key area of focus for us and the team is delivering. Our healthcare business continues to benefit from initiatives to reduce product costs, including the recent relocation of most of our sensor manufacturing to Malaysia, which continues to be executed extremely well and ahead of schedule.

本季的另一個突出項目是毛利率大幅成長。我們向投資者承諾，這將是我們和團隊正在交付的重點關注領域。我們的醫療保健業務繼續受益於降低產品成本的舉措，包括最近將我們的大部分感測器製造轉移到馬來西亞，該計劃繼續執行得非常好並且提前。

In addition, we have an engineering team that focuses each year on product updates to reduce our cost of goods and increase margins. We have filled this team with some highly skilled talent and the benefits are currently flowing through the P&L. The combination of strong conversions, new equipment installations and increasing hospital census gives us the confidence to significantly increase our full year guidance for health care revenues and earnings.

此外，我們擁有一支工程團隊，每年專注於產品更新，以降低我們的商品成本並增加利潤。我們為這個團隊配備了一些高技能人才，目前收益正在透過損益表流動。強勁的改造、新設備安裝和不斷增加的醫院普查相結合，使我們有信心大幅提高全年醫療保健收入和收益指引。

I'm particularly proud of how well our global organization is performing. We remain committed to separating our consumer business as previously announced on July 8, we received preliminary terms from a potential JV partner, and we have extended exclusivity until August 15 to accommodate their needs. We believe this option could offer shareholders the best outcome, but the completion of the transaction is not entirely in our control.

我對我們全球組織的出色表現感到特別自豪。我們仍然致力於分離我們的消費者業務，正如之前在 7 月 8 日宣布的那樣，我們收到了潛在合資夥伴的初步條款，並且我們已將排他性延長至 8 月 15 日以滿足他們的需求。我們相信這個選擇可以為股東帶來最好的結果，但交易的完成並不完全由我們控制。

In addition to the potential JV, we are considering all strategic options, including the sale of or spinoff of the REO business, either alone or together with the consumer health business. We will act decisively to execute on the option that that maximizes value for shareholders and puts us on the path to achieve our long-term goal of $8 earnings per share, which would effectively double our EPS in 5 years.

除了潛在的合資企業之外，我們還在考慮所有策略選擇，包括單獨出售或分拆 REO 業務或與消費者健康業務出售或分拆。我們將果斷採取行動，執行為股東帶來最大價值的選擇，並使我們走上實現每股收益 8 美元的長期目標的道路，這將在 5 年內使我們的每股收益實際上翻一番。

With that, I'll pass it over to Micah to review our second quarter results in more detail and provide an update on our 2024 outlook.

接下來，我會將其轉交給 Micah，以更詳細地審查我們第二季的業績，並提供 2024 年展望的最新資訊。

Thank you, Joe, and good afternoon, everyone. For the second quarter, our healthcare revenues were $344 million, which were above the top end of our guidance range and represented 23% growth versus last year. Our consumable and service revenues grew 29%, partially offset by an expected decline of 9% in capital and other revenues.

謝謝喬，大家下午好。第二季度，我們的醫療保健收入為 3.44 億美元，高於我們指導範圍的上限，與去年相比成長 23%。我們的消費品和服務收入成長了 29%，部分被資本和其他收入預期下降 9% 所抵銷。

Within consumable and service revenues, our SET pulse oximetry consumables grew 35%. Capnography consumables grew 35% and brain monitoring consumables grew 19%. Partially offsetting this growth, Rainbow consumable revenues declined 5% due to the timing of shipments outside the US. We expect Rainbow consumable revenues to reach our double digit growth target for the full year based on continued growth outside the US and adoption of Rainbow sensors in the US following the FDA clearance of Oxygen Reserve Index late last year. Our ongoing focus on expanding our footprint with existing customers and winning new customers has built a solid foundation for growth in the second half of 2024 and beyond.

在消耗品和服務收入中，我們的 SET 脈搏血氧儀消耗品增加了 35%。二氧化碳圖耗材成長 35%，腦監測耗材成長 19%。由於美國境外的出貨時間，Rainbow 消耗品收入下降了 5%，部分抵銷了這一成長。我們預計 Rainbow 耗材收入將達到我們全年兩位數的成長目標，這是基於美國以外地區的持續成長以及去年年底 FDA 批准氧氣儲備指數後在美國採用 Rainbow 感測器的結果。我們持續致力於擴大現有客戶的覆蓋範圍並贏得新客戶，這為 2024 年下半年及以後的成長奠定了堅實的基礎。

As shown in our slides today, the incremental value of new contracts was $134 million this quarter, increasing 28% versus last year and rising 34% sequentially. This clearly demonstrates Massimo's strong market share gains through contracting with our hospital customers and has contributed to a 16% increase in unrecognized contract revenues, which have reached $1.6 billion as of the end of the second quarter. You'll be able to see the benefits from these new contracts in our revenue growth as the equipment is installed over the next six to nine months.

正如我們今天的幻燈片所示，本季新合約的增量價值為 1.34 億美元，比去年增長 28%，比上一季增長 34%。這清楚地表明 Massimo 透過與我們的醫院客戶簽訂合約而獲得了強勁的市場份額，並導致未確認合約收入增長了 16%，截至第二季末已達到 16 億美元。隨著設備在未來六到九個月內安裝完畢，您將能夠看到這些新合約為我們的收入成長帶來的好處。

On a related note, driver shipments for the second quarter were 59,000 and were above our expectations. We believe that driver shipments will steadily rise over the remainder of the year and are being fueled by the excellent level of conversions that our team is achieving.

與此相關的是，第二季度驅動器出貨量為 59,000 輛，超出了我們的預期。我們相信，在我們團隊所實現的出色轉換水準的推動下，驅動程式出貨量將在今年剩餘時間內穩定成長。

Non-health care revenues were $152 million, which was at the low end of our guidance range and represented an 11% decline versus the prior year. This business continues to be affected by the weakening environment for luxury consumer purchases as well as slowness in the housing market, which affects product installations and upgrades.

非醫療保健收入為 1.52 億美元，處於我們指引範圍的低端，比上年下降 11%。該業務繼續受到奢侈品消費者購買環境疲軟以及房地產市場放緩的影響，從而影響產品安裝和升級。

Now moving down the P&L. For the second quarter, our consolidated non-GAAP gross margin was 54%, which included gross margins of 62.5% for health care and 35% for non-healthcare. Healthcare gross margins improved 240 basis points year-over-year and rose 20 basis points sequentially, which is attributable to the relocation of sensor manufacturing to Malaysia, combined with increased operational efficiencies and a favorable mix benefit from higher consumable sales. Our progress on this front gives us confidence in achieving our long-term goal of 30% operating margins for the healthcare business in 5 years.

現在將損益表向下移動。第二季度，我們的綜合非 GAAP 毛利率為 54%，其中醫療保健毛利率為 62.5%，非醫療保健毛利率為 35%。醫療保健毛利率年增 240 個基點，環比提高 20 個基點，這歸因於感測器製造轉移到馬來西亞，加上營運效率提高以及消耗品銷售增加帶來的有利組合效益。我們在這方面取得的進展讓我們有信心在 5 年內實現醫療保健業務營運利潤率達到 30% 的長期目標。

For our consolidated business, non-GAAP operating profit was $73 million. Our operating margin of 15% improved sequentially from the first quarter, but declined modestly versus last year due to the return of performance based compensation to normalized levels in 2024.

對於我們的合併業務，非 GAAP 營業利潤為 7,300 萬美元。我們的營業利潤率為 15%，較第一季連續提高，但由於 2024 年基於績效的薪酬恢復到正常水平，與去年相比略有下降。

Excluding the impact of performance-based compensation, our operating expenses decreased 4% versus the prior year period due to cost reduction initiatives. Even with the return of performance based compensation, we delivered 13% earnings growth to achieve non-GAAP earnings per share of $0.86 for the second quarter.

排除基於績效的薪酬的影響，由於成本削減舉措，我們的營運費用比上年同期下降了 4%。即使基於績效的薪酬回歸，我們第二季度的非 GAAP 每股收益仍實現了 13% 的成長，達到 0.86 美元。

Moving to cash flow, we generated operating cash flow of $75 million due to strong earnings and working capital improvements. As a result, we were able to pay down $93 million of debt in the second quarter, bringing our outstanding debt to $782 million. Increasing cash flow and reducing debt are key priorities for the organization and we are succeeding with both objectives.

轉向現金流，由於強勁的盈利和營運資本改善，我們產生了 7500 萬美元的營運現金流。結果，我們在第二季償還了 9,300 萬美元的債務，使未償債務達到 7.82 億美元。增加現金流和減少債務是組織的首要任務，我們在這兩個目標上都取得了成功。

Now I'd like to provide an update on our 2024 financial guidance. For the third quarter 2024, we are projecting consolidated revenue of $495 million to $515 million, and non-GAAP earnings per share of $0.81 to $0.86, representing 8% to 15% earnings growth. For the healthcare segment, we are projecting revenue of $335 million to $345 million, representing 9% to 12% revenue growth.

現在我想提供 2024 年財務指引的最新資訊。對於 2024 年第三季度，我們預計合併收入為 4.95 億美元至 5.15 億美元，非 GAAP 每股收益為 0.81 美元至 0.86 美元，即收益成長 8% 至 15%。對於醫療保健領域，我們預計營收為 3.35 億美元至 3.45 億美元，營收成長 9% 至 12%。

Robust hospital census, along with our record-breaking hospital conversions, new equipment installations and strong sales order backlog increases our confidence in achieving a growth rate that exceeds the 9% revenue growth we saw in the first half of the year. For the non-healthcare segment, we are projecting revenues of $160 million to $170 million.

穩健的醫院普查，加上破紀錄的醫院改造、新設備安裝和強勁的銷售訂單積壓，增強了我們實現超過上半年 9% 收入成長的信心。對於非醫療保健領域，我們預計收入為 1.6 億至 1.7 億美元。

Now turning to our full year 2024 financial guidance. We are now projecting a consolidated revenue range of $2,085 million to $2,135 million. For our healthcare segment, we are now projecting revenues of $1,385 million to $1,405 million, representing 9% to 10% revenue growth for the year and an increase of $25 million at the midpoint versus the prior guidance range. With regard to driver shipments, we expect to see shipments increased to more than 60,000 in both the third and fourth quarters, representing a sequential step-up from the first half levels.

現在轉向我們的 2024 年全年財務指引。我們目前預計綜合收入範圍為 20.85 億美元至 21.35 億美元。對於我們的醫療保健部門，我們目前預計收入為 13.85 億美元至 14.05 億美元，相當於今年收入成長 9% 至 10%，與先前的指導範圍相比，中間值增加 2,500 萬美元。在驅動器出貨量方面，我們預計第三季和第四季的出貨量將增加至6萬台以上，較上半年水準較上季上升。

For the non-healthcare segment, we are now projecting revenues of $700 million to $730 million, which represents a decrease of $25 million at the midpoint versus the prior guidance range. For the full year, we are now projecting consolidated non-GAAP gross margin of 53%, which includes healthcare gross margins of 62.5% and non-health care gross margins of 34%.

對於非醫療保健領域，我們目前預計收入為 7 億至 7.3 億美元，與先前的指導範圍相比，中位數減少了 2,500 萬美元。我們目前預計全年的綜合非 GAAP 毛利率為 53%，其中醫療保健毛利率為 62.5%，非醫療保健毛利率為 34%。

Finally, we are now projecting non-GAAP EPS range of $3.80 to $4.00 per share, which represents an increase of $0.28 at the midpoint versus the prior guidance range, demonstrating our year-to-date progress and our strong commitment to increasing operating leverage and driving sustainable earnings growth.

最後，我們現在預計非GAAP 每股收益範圍為3.80 美元至4.00 美元，與先前指導的範圍相比，中點增加了0.28 美元，這表明我們今年迄今取得的進展以及我們對提高營運槓桿率和盈利能力的堅定承諾。

In summary, our healthcare business is solidly back on its expected growth track, and we foresee the potential for even faster growth combined with expanding margins over the remainder of the year. Our hospital conversions have grown substantially over the past 12 months, and those contracts can drive higher sensor volumes for the next 5 years.

總而言之，我們的醫療保健業務已穩步回到預期的成長軌道，我們預計今年剩餘時間內將有更快成長的潛力以及不斷擴大的利潤率。在過去 12 個月裡，我們醫院的改造量大幅成長，這些合約可以在未來 5 年內推動感測器產量的成長。

Now I'd like to provide you with an update on the progress we are making on the separation of our consumer business from our healthcare business. While we continue to see long-term potential for the consumer business, we believe that separating into two stand-alone businesses will maximize returns for Masimo shareholders and ensure the market can recognize the full value of our thriving healthcare business.

現在，我想向您介紹我們在消費者業務與醫療保健業務分離方面所取得的最新進展。雖然我們繼續看到消費者業務的長期潛力，但我們相信，分成兩個獨立的業務將為 Masimo 股東帶來最大化的回報，並確保市場能夠認識到我們蓬勃發展的醫療保健業務的全部價值。

As Joe mentioned, while the JV offers a uniquely attractive solution for separating the consumer businesses while retaining some upside, the Board is considering all options to separate the consumer audio business regardless of the outcome of the JV negotiations. We are committed to executing on a full deconsolidation of the consumer audio business from our financial statements.

正如Joe 所提到的，雖然合資企業為分離消費者業務提供了一個獨特且有吸引力的解決方案，同時保留了一些優勢，但董事會正在考慮分離消費者音頻業務的所有選擇，無論合資企業談判的結果如何。我們致力於將消費音頻業務從我們的財務報表中完全剝離出來。

Our thriving healthcare business is being obscured by the weaker consumer market and increases our desire to separate the two businesses. We are committed to this goal, whether it is through the JV, a cell or a spin-off of audio alone or audio combined with consumer health, our decisions on the structure that any separation will be predicated on providing maximum value to our shareholders.

我們蓬勃發展的醫療保健業務被疲軟的消費市場所掩蓋，這增加了我們將這兩項業務分開的願望。我們致力於實現這一目標，無論是透過合資企業、單獨的單元還是音訊的分拆，還是音訊與消費者健康相結合，我們對結構的決定，任何分離都將基於為我們的股東提供最大價值。

To that end, we've provided a preliminary estimate of the financial impact of two different alternatives for a separation on slide 9 of our earnings presentation. Notably, assuming an outright sale of just the consumer audio business is completed as outlined, we estimate that Massimo's non-GAAP operating margins would improve by 610 basis points to reach 21%.

為此，我們在收益簡報的幻燈片 9 上提供了兩種不同的分拆方案的財務影響的初步估計。值得注意的是，假設僅按照上述方式完成消費音響業務的徹底出售，我們估計 Massimo 的非 GAAP 營運利潤率將提高 610 個基點，達到 21%。

Alternatively, if the audio business is divested in combination with the consumer health business as contemplated in the proposed JV, we estimate that Massimo's non-GAAP operating margins would further improve by 260 basis points to reach 24%. This structure would result in significant progress towards achieving our long-term goal of 30% operating margins for the healthcare business.

或者，如果按照擬議合資企業的設想，將音訊業務與消費者健康業務一起剝離，我們估計 Massimo 的非 GAAP 營運利潤率將進一步提高 260 個基點，達到 24%。這種結構將在實現我們醫療保健業務 30% 營業利潤率的長期目標方面取得重大進展。

If the transaction results in cash proceeds to Masimo, we plan to use those proceeds to pay down debt and reduce interest expense, which currently amounts to $40 million in our guidance this year. Either way with our strong cash flow, we expect to retire our debt within 3 to 4 years.

如果交易為 Masimo 帶來現金收益，我們計劃使用這些收益來償還債務並減少利息支出，目前我們今年的指導金額為 4000 萬美元。無論哪種方式，憑藉我們強勁的現金流，我們預計將在 3 至 4 年內償還債務。

With that, I'll turn the call back to Joe.

這樣，我會將電話轉回喬。

Thank you, Micah. Before we go to Q&A, I want to thank our team for their unrelenting effort and consistent focus through a disruptive time that is unprecedented. Our last few quarters clearly demonstrate that the post COVID disruptions are behind us and we are back on track to meet or exceed expectations.

謝謝你，米迦。在我們進行問答之前，我要感謝我們的團隊在前所未有的顛覆性時期所做的不懈努力和始終如一的專注。過去幾季清楚地表明，新冠疫情後的混亂已經過去，我們已回到正軌，達到或超越預期。

Our main objective continues to be driving our revenue growth towards double digits by providing our customers with clinically relevant innovations and achieving or exceeding 30% operating margins. We see a clear pathway to reach that margin target within the next 5 years and expect the planned business separation to have an immediate positive impact on the profitability of our professional healthcare business once finalized.

我們的主要目標仍然是透過為客戶提供臨床相關的創新並實現或超過 30% 的營業利潤率，推動我們的收入成長達到兩位數。我們看到了在未來 5 年內實現這一利潤率目標的明確途徑，並預計計劃中的業務分離一旦最終確定，將對我們專業醫療保健業務的盈利能力產生直接的積極影響。

Our future is brighter than ever as we execute on our mission to improve lives, improve patient outcomes and reduce cost of care and taking non-invasive monitoring to new sites and applications.

我們的未來比以往任何時候都更加光明，因為我們履行著改善生活、改善患者治療效果、降低護理成本以及將非侵入性監測引入新站點和應用的使命。

With that, we will open the call to questions. Operator?

至此，我們將開始提問。操作員？

(Operator Instructions) Jason Bednar.

（操作員說明）賈森·貝德納爾。

Good afternoon, everyone. Thanks for taking the questions. Nice quarter here. Joe or Micah, feel free to respond here, but the core business performance appears to improve quite a bit. We are seeing in the driver numbers. We're seeing the productivity and installed base and seeing the gross margin in the health care franchise.

大家下午好。感謝您提出問題。這裡不錯。Joe 或 Micah，請隨意在這裡回复，但核心業務績效似乎提高了很多。我們在司機人數中看到了這一點。我們看到了生產力和安裝基礎，並看到了醫療保健特許經營權的毛利率。

So look, there's understandably a little skepticism from investors out there regarding maybe a repeat of what we saw last year ahead of the shareholder vote. So really just hoping you could comment on maybe what's different this time around? What kind of visibility are you going to offer to lend confidence to the investment community that the underlying improvements are sustainable into the back half of the year and that there wasn't any pull forward of revenue or margin contribution?

因此，投資人對去年股東投票前所見的情況可能會重演，持懷疑態度是可以理解的。所以真的只是希望你能評論一下這次可能有什麼不同？您將提供什麼樣的可見度來讓投資界相信基本的改善可以持續到今年下半年，並且收入或利潤貢獻沒有任何提前？

Well, maybe I'll start off high level, Jason. First of all, as you've seen from some of the public hospitals that have reported, the census is very strong. I think HCA and Tennant reported a 5% increase. And our business is driven a lot by the consumables, which is driven by hospital admissions and hospital admissions. So that's one.

好吧，也許我會從高水平開始，傑森。首先，正如大家從一些公立醫院的報道中看到的，普查力道非常大。我認為 HCA 和 Tennant 報告增加了 5%。我們的業務很大程度上是由消耗品驅動的，消耗品是由住院和住院人數所驅動的。這就是其中之一。

The second to address directly, what you're saying, we have not had this level of backlog for many, many quarters. The backlog going into Q3 is extremely strong. And that's one of the reasons besides the sensors and the successful conversions of hospitals to Masimo at a really rapid rate has made us feel comfortable and updating our guidance and giving such a strong guidance for the rest of the year.

第二個直接解決你所說的問題，我們已經有很多很多季度沒有出現過這種程度的積壓了。進入第三季的積壓訂單非常強勁。這就是除了感測器之外的原因之一，醫院以非常快的速度成功轉換為 Masimo，讓我們感到放心，並更新了我們的指導，並為今年剩餘時間提供瞭如此強有力的指導。

Alright. Very helpful. And I just want to double check because I know and there's already questions that are, that have surfaced since the pre-announcement, but, no, that's super helpful Joe.

好吧。非常有幫助。我只是想仔細檢查一下，因為我知道，自預先公告以來已經出現了一些問題，但是，不，這非常有幫助，喬。

And then I wanted to come back to some of the comments you made, just maybe help us with the JV situation, the JV partner situation, you referenced the August 15 exclusivity period. They extended it to this partner. I think that was in the 8-K that you provided a month ago.

然後我想回到您發表的一些評論，也許可以幫助我們解決合資企業的情況、合資企業合作夥伴的情況，您提到了 8 月 15 日的獨佔期。他們將其擴展到了這個合作夥伴。我認為那是您一個月前提供的 8-K 中的內容。

But you also mentioned that things are outside your control. I'm not sure if you're suggesting that's in the control of the JV partner or if the agreement that you have is interrelated with the upcoming shareholder vote.

但你也提到事情超出了你的控制範圍。我不確定您是否建議這由合資夥伴控制，或者您所達成的協議是否與即將舉行的股東投票有關。

I'm curious of other players may have entered the discussion with the original JV partner or if you've received other definitive inbound interest beyond what was originally outlined. So really just trying to get a sense of where things stand, if you can give us an update and whether or not we should expect anything ahead of the AGM or after the AGM?

我很好奇其他參與者可能已經與最初的合資夥伴進行了討論，或者您是否收到了超出最初概述的其他明確的入境興趣。所以，我真的只是想了解一下情況，您是否可以向我們提供最新情況，以及我們是否應該在年度股東大會之前或之後期待任何事情？

Well, first of all, given some of the innuendos and comments that were thrown out, we made it clear that we will not do any JV unless the activist Board member agreed to it.

嗯，首先，考慮到一些被拋出的暗示和評論，我們明確表示，除非有積極的董事會成員同意，否則我們不會建立任何合資企業。

Secondly, when we mentioned some of our control because unlike a sale or a spin, this requires a JV partner to also to do what say they're going to do. And as you know, they had, we have reported this before if they wanted to get one or two other more partners in the JV. So that's I think one of the reasons they asked us to give them to August 15.

其次，當我們提到我們的一些控制權時，因為與銷售或分拆不同，這要求合資夥伴也按照他們所說的去做。如您所知，如果他們想在合資企業中再獲得一兩個合作夥伴，我們之前已經報告過這一點。所以我認為這就是他們要求我們在 8 月 15 日之前提交的原因之一。

That's what they're currently working on and we should know soon what they're going to do and we will report to you what they're going to do. But I think Micah and I wanted to reiterate, regardless of what the JV partner does because or doesn't do (Laughter), we still think the JV proposal was the best proposal compared to other options, but if those, that option doesn't come true, we still will do a separation and nothing is off the table, whether it's just separating the audio business or separate audio and the consumer health business. We'll do whatever we believe is best for shareholders.

這就是他們目前正在做的事情，我們應該很快就會知道他們將要做什麼，我們將向您報告他們將要做什麼。但我認為Micah 和我想重申，無論合資夥伴做什麼或不做什麼（笑聲），我們仍然認為與其他選項相比，合資提案是最好的提案，但如果是這些，那麼該選項就不會。我們將做任何我們認為對股東最有利的事情。

Okay. And then maybe just a quick follow-up. Joe, and should we expect something like that, I guess a more definitive path forward then after we hear what that JV partner decides as of August 15 or do we need to sit tight until after the shareholder vote to maybe have a better clarity on what that looks like?

好的。然後也許只是快速跟進。喬，如果我們期待類似的事情，我想在我們聽到合資夥伴截至 8 月 15 日的決定之後，會有更明確的前進道路，或者我們是否需要等待股東投票之後才能更好地弄清楚什麼看起來像？

As soon as we have something that we can do, we will take it to the Board, assuming we have that. If the Board approves it unanimously, then we can get it done. I don't think it needs to wait for the shareholder meeting. But clearly it has to be unanimous vote by the Board, which hopefully should mean everyone's happy with it. But if we don't get a unanimous vote, then we're not going to do it regardless of whether it's before or after the shareholder meeting.

一旦我們有可以做的事情，我們就會將其提交給董事會（假設我們有這樣的能力）。如果董事會一致通過，我們就能完成。我認為不需要等到股東大會。但顯然，這必須得到董事會的一致投票，這希望意味著每個人都對此感到滿意。但如果沒有獲得一致通過，那麼無論是在股東大會之前或之後，我們都不會這樣做。

All right. Very helpful. Thanks so much. Nice quarter.

好的。非常有幫助。非常感謝。不錯的季度。

Thank you.

謝謝。

Thanks, Jason.

謝謝，傑森。

Marie Thibault.

瑪麗·蒂博。

Hi, Joe. Hi, Micah. Thanks for taking the questions this evening. Wanted to ask a straightforward one here on the Q3 guide. If I think back to Massimo healthcare pre COVID, I'm very used to Q2 and Q3 revenue being very similar, the healthcare revenue being very similar and often quite flat sequentially between Q2 and Q3. Just curious if there's anything to think about when we look at the Q3 guide, the midpoint is just $5 million or so below what you achieved in Q2 and how to think about maybe the puts and takes on thatguide?

嗨，喬。嗨，麥卡。感謝您今晚接受提問。想在第三季指南上問一個簡單的問題。如果我回想一下新冠疫情之前的馬西莫醫療保健，我非常習慣第二季和第三季的收入非常相似，醫療保健收入非常相似，並且在第二季和第三季之間通常非常穩定。只是好奇，當我們查看第三季度指南時，是否有什麼需要考慮的，中點僅比您在第二季度所取得的成果低500 萬美元左右，以及如何考慮該指南的看跌期權和承付金額？

Yeah, thanks Marie. So the way we're thinking about that is we are seeing, of course, strong contracting installations seems to start to normalize now. We're not seeing the length of the delays that we've seen in the past. So that's helping us to more to the positive as we look into Q3 and Q4 and that strength should come through revenues.

是的，謝謝瑪麗。所以我們思考這個問題的方式是，我們當然看到，強大的承包安裝現在似乎開始正常化。我們沒有看到過去那樣的延誤時間。因此，當我們研究第三季和第四季時，這有助於我們更積極地發揮作用，而這種力量應該來自收入。

We are also being mindful though, of census, and we saw a very strong census in Q2. I think it was reported out by some of the large public companies, as Joe mentioned, 5% inpatient growth in Q2. I think those following 4% growth in Q1. So we're also being cautious there in terms of the, how we think about that. So, and I think a lot of those public hospitals are also guiding to a full year growth of around 3% to 4%.

不過，我們也注意到人口普查，我們在第二季看到了非常強勁的人口普查。我認為一些大型上市公司報告了這一點，正如 Joe 所提到的，第二季度住院患者增加了 5%。我認為第一季成長率為 4%。因此，我們對此的看法也持謹慎態度。因此，我認為許多公立醫院的全年成長目標也為 3% 至 4% 左右。

So they're being cautiously, I guess, cautiously optimistic in the back half of the year as well. So strength from contracting installations. And if you really look at the business historically, our healthcare revenues have had years where they've ticked down in Q2 to Q3.

因此，我猜他們在今年下半年也持謹慎樂觀的態度。因此，承包安裝的力量。如果你真正回顧一下該業務的歷史，我們的醫療保健收入多年來在第二季到第三季一直在下降。

And that if you go back pre COVID and kind of look at the three years leading up to 2019, we averaged a step down from Q1 or Q2 to Q3 a slight step down there. So that's why we put at the mid point $345 million of revenue or -- sorry, $340 million of revenue in the high end $345 million, which would keep it flat to Q2.

如果你回顧一下新冠疫情之前的情況，看看 2019 年之前的三年，我們的平均值從第一季或第二季到第三季略有下降。這就是為什麼我們將 3.45 億美元的收入放在中間位置，或者抱歉，將 3.4 億美元的收入放在高端的 3.45 億美元中，這將使其與第二季度持平。

Okay. That's really helpful, Micah, thank you. And then maybe my follow-up. I heard a quick mention of it, Oxygen Reserve Index, that's one of the newer products and health care that should come with a revenue uplift and I know a standard of care in some countries where it's been available for a few years. So can you tell us how that's doing in the US? What the early feedback is on that? And are you indeed seeing any revenue tailwinds from that?

好的。這真的很有幫助，米卡，謝謝你。然後也許是我的後續行動。我聽到有人很快提到它，氧氣儲備指數，這是一種較新的產品和醫療保健，應該會帶來收入的增加，而且我知道一些國家的護理標準已經存在幾年了。您能告訴我們美國的情況如何嗎？對此的早期回饋是什麼？您確實看到了由此帶來的收入成長嗎？

Yes, thanks, Marie. Yes, that's gone really well. We are seeing an uptick in the US with adoption of Rainbow. I think the combination of Oxygen Reserve Index, as well as now offering the cardiac output with Rainbow, that gets us a measurement of oxygen delivery, I think it's helping our Rainbow business tremendously. We should see great results in the second half, and that's why I believe Micha mentioned, we expect for the year to grow double digits in Rainbow not just based on OUS, but US conversions.

是的，謝謝，瑪麗。是的，一切進展順利。隨著 Rainbow 的採用，我們在美國看到了成長。我認為氧氣儲備指數的結合，以及現在與 Rainbow 提供的心輸出量，可以讓我們測量氧氣輸送量，我認為這對我們的 Rainbow 業務有很大幫助。我們應該在下半年看到出色的成果，這就是為什麼我相信 Micha 提到的，我們預計 Rainbow 今年將實現兩位數成長，不僅基於 OUS，還基於美國的轉換。

Thank again. All right. I appreciate it. Thanks so much.

再次感謝。好的。我很感激。非常感謝。

Thank you.

謝謝。

Thank you, Marie.

謝謝你，瑪麗。

Rick Wise.

瑞克懷斯.

Good afternoon, everybody.

大家下午好。

Hi, Rick.

嗨，瑞克。

Hi, Joe. I was hoping maybe first talk you could talk a little bit more about implied rest of your consumer outlook, obviously you're going through the separation, but just help me better understand. Obviously, yesterday there was a lot of concerns about a softening or more softening of the economic environment.

嗨，喬。我希望也許在第一次談話時你能多談談你的消費者前景的隱含其餘部分，顯然你正在經歷分離，但只是幫助我更好地理解。顯然，昨天人們對經濟環境的疲軟或更加疲軟有許多擔憂。

I think if I'm doing it correctly, guidance is implying sequential consumer sales improvement in the second half. Help us understand your thoughts or your optimism, your confidence that consumer sales will impact increased sequentially as the year unfolds.

我認為，如果我做得正確，指導意味著下半年消費者銷售將持續改善。幫助我們了解您的想法或您的樂觀情緒，以及您對消費者銷售將影響的信心隨著時間的推移而不斷增加。

Sure, Rick. The growth this year should come from our hearable. These are the over the air headphones and inner ear airbuds, like the Bowers & Wilkins headphones and airbuds and the Denon PerLS. So we, as you remember, last year grew by 100% compared to year before that business. We expect to see strong growth this year as well. But those products are typically shipped in Q4.

當然，瑞克。今年的成長應該來自我們的耳戴式設備。這些是無線耳機和內耳式耳機，例如 Bowers & Wilkins 耳機和耳機以及 Denon PerLS。所以，正如你所記得的，去年我們的業務比前一年增長了 100%。我們預計今年也將強勁成長。但這些產品通常在第四季出貨。

It's kind of a holiday gift Christmas thing. So we expect a very strong Q4, and even though we think the high end audio, both the speakers and the AVRs, maybe continued to be muted because of the economic pressures. We think the ear buds and headphone business will grow, and that's why we're optimistic about the second half of the year.

這有點像聖誕節的節日禮物。因此，我們預計第四季度將會非常強勁，儘管我們認為高階音訊（包括揚聲器和 AVR）可能會因為經濟壓力而繼續保持沉默。我們認為耳塞和耳機業務將會成長，這就是我們對下半年樂觀態度的原因。

Got you. And Micah, maybe you could or Joe could expand on your comments about two things related to gross margins and therefore operating margins. You said that Malaysia is ahead of schedule going well. And if I'm remembering correctly, last quarter, you said it was two-thirds of the way through that sensor manufacturing transition.

明白你了。Micah，也許您或 Joe 可以詳細闡述您對與毛利率和營業利潤率相關的兩件事的評論。你說馬來西亞提前進行得很順利。如果我沒記錯的話，上個季度，您說過感測器製造轉型已經完成了三分之二。

In those three months, where does it stand today? When is it going to be done? How are you thinking, what are you baking into the guidance? And maybe just separately, but related, what's, what you talked about some of the cost reduction initiatives? Maybe you can help us better understand what those are and again, you are confident in the second half outlook based on the programs they are currently helping out so far, Thank you.

這三個月的時間，今天的情況如何？什麼時候完成？您的想法如何？也許只是分開的，但相關的，你談到了一些成本削減措施是什麼？也許您可以幫助我們更好地了解這些是什麼，並且根據他們目前正在幫助的項目，您對下半年的前景充滿信心，謝謝。

Absolutely. Thank you. Rick. Well, just to kind of step back and provide some context. We came into the year and I believe our guidance for health care was 61.9% gross margins. We took that up about, I believe, 60 basis points, 50, 60 basis points less last guide, where we're taking up another 10 basis points for the year to get to 62.5% for the year.

絕對地。謝謝。瑞克.好吧，只是退後一步並提供一些背景資訊。進入這一年，我相信我們對醫療保健的毛利率指引為 61.9%。我相信，我們將這一數字提高了大約 60 個基點，比上一個指導值少了 50、60 個基點，我們今年將再提高 10 個基點，以達到 62.5%。

So we're seeing good traction so far. Last quarter, we were about two-thirds of the way there with Malaysia manufacturing. Keep in mind that a lot of that early on is more of the high volume runners that we're getting up and running first with sensors. The next phase that we're working through now, between now and the end of the year is going to be some of the lower volume parts and more complex parts.

所以到目前為止我們看到了良好的牽引力。上個季度，馬來西亞製造業的進度約為三分之二。請記住，早期的許多都是我們首先使用感測器啟動和運行的大容量跑步者。從現在到今年年底，我們正在努力的下一階段將是一些小批量零件和更複雜的零件。

So it will take a little time, but we plan to be there by the fourth quarter as we exit this year. We're already seeing good efficiencies coming out of Malaysia and that workforce doing an incredible job so far. That's starting to roll through the P&L. We should start to see an uptick in margins, gross margins in Q4. We're expecting gross margins to be relatively flat to Q3 from the first half, but then stepping up closer to 63% in the fourth quarter. So progressing well there.

所以這需要一點時間，但我們計劃在今年第四季退出時實現這一目標。我們已經看到馬來西亞的效率很高，到目前為止，員工的工作表現令人難以置信。這開始計入損益表。我們應該開始看到第四季利潤率和毛利率的上升。我們預計上半年毛利率將與第三季持平，但第四季將接近 63%。所以那裡進展順利。

We also have our team that's dedicated on cost reductions of your second part of your question. The engineers continuously look to take costs out each and every year, it's where we've historically gained good margin expansion and trying to fight the offset of the inflationary costs that we've seen over the years.

我們還有我們的團隊致力於降低您問題第二部分的成本。工程師每年都不斷尋求降低成本，這是我們歷史上獲得良好利潤擴張的地方，並試圖抵消多年來我們看到的通貨膨脹成本。

But I think where we're seeing that progress very well, they're taking costs out of anything from our technology Boards, our cables that attach to the bring the attachment to the sensors. Also, we're seeing mix benefits from some of the prior cost reduction efforts that they did to reduce the cost of sensors from moving from links to RD.

但我認為我們看到的進展非常好，他們正在從我們的技術板、連接到感測器的電纜上降低成本。此外，我們也看到了他們先前為降低感測器從連結轉移到 RD 的成本而採取的一些降低成本措施所帶來的混合效益。

And I think we're close to, we're probably over 50% now with the lower cost sensor now with its higher margins. So that's progressing well. And we're continuously trying to take cost out of our Masimo branded equipment as well and some of the advanced parameter lines like normal line.

我認為我們已經接近，我們現在可能超過 50%，因為感測器成本更低，利潤率更高。所以進展順利。我們一直在努力降低 Masimo 品牌設備和一些高級參數線（如普通線）的成本。

Great. If I could ask a quick follow-up. I apologize. You expect a lot of confidence in your 30% operating margin goal. Just in simple terms it, Miach, is this sales-driven, mix-driven? What are the, why are you confident that's the right goal and that you have the tools in hand to make it happen?

偉大的。如果我能要求快速跟進的話。我道歉。您對 30% 的營業利潤率目標充滿信心。簡單來說，Miach，這是銷售驅動、組合驅動嗎？是什麼，為什麼您確信這是正確的目標，並且您手邊有工具來實現它？

Yeah, I think what's give me a lot of competence is we do believe that we can get back up. I mean, we're assuming just to get the 30%, that gross margins get back to 66%. We've been as high as 67% and maybe even 68% before a lot of the inflationary costs that sprung from COVID, the COVID years with over the past four or five years, we've had a lot of inflationary cost increases and labor cost down in Mexico.

是的，我認為給我很多能力的是我們確實相信我們可以重新站起來。我的意思是，我們假設只要達到 30%，毛利率就會恢復到 66%。在Covid引發的大量通膨成本之前，我們已經高達67％，甚至可能達到68％，在過去的四五年裡，我們的通貨膨脹成本增加了許多墨西哥的成本下降了。

And now that we're moving that manufacturing to Malaysia, that's going to give us good benefits, not only on the labor cost production, but also improving efficiencies as we're seeing a much more stable workforce and lower turnover. We've had a lot of currency headwinds with the peso, although it's had the right direction, again, finally, but a much more stable currency situation there with Malaysia as well. So that's giving us more confidence on top of all the cost reduction initiatives we've laid out and we've, the teams aggressively pursuing those product cost reductions that I just mentioned.

現在我們正在將製造業轉移到馬來西亞，這將為我們帶來良好的效益，不僅在勞動力成本生產方面，而且還提高了效率，因為我們看到勞動力更加穩定，人員流動率更低。我們在比索方面遇到了很多貨幣阻力，儘管它最終再次有了正確的方向，但馬來西亞的貨幣狀況也更加穩定。因此，這讓我們對我們已經制定的所有成本削減措施更有信心，我們的團隊也積極追求我剛才提到的產品成本削減。

The other thing to your question on revenue leverage is very important. I mean to growth, let's say 7% to 10% is what we're really going after to deliver that $8 EPS and doubling EPS in the next 5 years. Revenue leverage is important that the innovation of this company is critical to drive, continue to drive revenue growth and we also, are set up well with the contracting we're doing over the next several years.

關於收入槓桿問題的另一件事非常重要。我的意思是成長，假設 7% 到 10% 是我們真正追求的目標，以實現 8 美元的每股收益，並在未來 5 年內將每股收益翻倍。收入槓桿很重要，因為該公司的創新對於推動、繼續推動收入成長至關重要，而且我們也為未來幾年正在進行的合約做好了準備。

So I think that's going to give us a leverage to, leverage those fixed costs and gross margin, leverage our installed base and then also leverage a lot of our fixed SG&A costs for the company as well and R&D. So when we look out 5 years that 30%, our performance this year, seeing the growth on the top line and where the strength of the businesses, we're getting a lot more confident towards achieving that 30% margin goal and $8 earnings per share.

因此，我認為這將為我們提供槓桿作用，利用這些固定成本和毛利率，利用我們的安裝基礎，然後也利用我們公司以及研發的大量固定SG&A成本。因此，當我們展望5 年30% 的業績時，看到我們今年的業績，看到營收的成長以及業務的實力，我們對實現30% 的利潤率目標和每股收益8 美元更有信心了。

Thanks to the thorough answer.

感謝您的徹底回答。

You're welcome.

不客氣。

Michael Polark.

麥可·波拉克.

Good afternoon. Thank you so much. The healthcare driver base in the deck, I'm seeing the installed base is up 2% year-on-year. I'm also hearing about record contracting and a tick-up in installation activity. Is it fair to say is that as new accounts get onboarded and you expect that 2% growth rate to reaccelerate here over the next year?

午安.太感謝了。在甲板上的醫療保健駕駛員基礎上，我看到裝機量同比增長了 2%。我還聽說唱片承包和安裝活動增加。可以公平地說，隨著新帳戶的加入，您預計明年 2% 的成長率會再次加速嗎？

Yeah. I think we're going to see continued step-up in driver shipments throughout the rest of this year, especially as we exit going into next year. I'd expect next year is going to be a strong year for driver shipments as we step up on the exit. The other thing is, we only need, we're replacing a lot of the existing drivers in our installed base today.

是的。我認為今年剩下的時間裡，我們將看到驅動程式出貨量持續增加，特別是當我們退出進入明年時。我預計明年將是司機出貨量強勁的一年，因為我們將加強出口。另一件事是，我們只需要更換今天安裝基礎中的許多現有驅動程式。

We've got about $2.6 million drivers that are out there. A lot of the shipments we're doing, half of those are replacing existing drivers because we've gotten to a significant market share already within pulse oximetry. So we really only need 50% of that kind of 60,000 plus run rate to be new drivers going out in the field and that's what we're seeing.

我們有大約 260 萬美元的司機。我們正在做的許多出貨量中，其中一半是在替換現有的驅動器，因為我們已經在脈搏血氧儀領域獲得了重要的市場份額。因此，我們實際上只需要 60,000 多次運行率中的 50% 成為新車手，而這就是我們所看到的。

And that's why we're starting to see it step back up because of the contracting we're doing. But our consumable revenue per driver is going to continue to expand. We're seeing this year on a year-to-date basis, consumable revenue per drivers up 11% to 12%, our installed base is up 2%. We're delivering about 14% growth on consumable revenue in the first half of the year. So that's coming off the strong contracting installations and just the momentum that we're seeing in the business.

這就是為什麼我們開始看到它因為我們正在做的合約而回升。但我們每位司機的消耗品收入將持續擴大。我們預計今年與年初至今相比，每位駕駛者的消耗品收入將成長 11% 至 12%，我們的安裝量將成長 2%。今年上半年我們的消費品收入成長了約 14%。因此，這是來自強大的承包設施以及我們在業務中看到的勢頭。

If I can ask a follow-up on this. Let's say your goal core health care is to grow 10% round numbers at this level of scale and kind of market share. What would you hope is the mix between kind of growth in the driver base versus growth in revenue per driver to get to 10%, say, next year or beyond?

如果我可以詢問此事的後續情況。假設您的核心醫療保健目標是在這一規模和市場份額水平上實現 10% 的整數增長。您希望駕駛群體的成長與每位駕駛者的收入成長之間的比例如何達到 10%（例如明年或以後）？

Yeah, I think of it being somewhere around probably 4% to 5%, maybe on driver or installed base growth and the other, call it 3% to 5% coming from our consumable revenue per driver.

是的，我認為它可能在4% 到5% 左右，可能是由於驅動程式或安裝基礎的成長，而另一個，我們稱之為3% 到5%，來自我們每個驅動程式的消耗性收入。

Yes. Okay. If I can ask then the last one on Apple, could we just get an update on the Apple litigation where it stands, what milestones might be upcoming? Thank you so much.

是的。好的。如果我能問關於蘋果的最後一個問題，我們能否了解蘋果訴訟的最新進展，可能會出現哪些里程碑？太感謝了。

Certainly, yes, we have probably two or three trials left. There is a litigation we bought against them in the federal court for patent test and trade secret test and those two, we were hoping to have a big one, but it might get broken into pieces right now. We're looking at the schedule in November to have the trade secret trial and then later the patent trial, I'm still hoping you'll get combined, will see.

當然，是的，我們可能還剩下兩到三個試驗。我們在聯邦法院對他們提起了一項訴訟，要求進行專利測試和商業機密測試，這兩個訴訟，我們希望有一個大訴訟，但現在可能會被分解。我們正在研究 11 月的時間表，先進行商業機密審判，然後再進行專利審判，我仍然希望你們能合併起來，拭目以待。

Then Apple bought a litigation against us in Delaware. And that first part of it should go to trial late October. And then our partner will broad patent and antitrust case against. That should go to trial hopefully next year. If we win our trade secret and patent case that's remaining even in federal court here in California who should be able to broaden our injunction, not just the limited SPO2 to photoplethysmogrpahy, which will include pulse rate and other related parameters to photoplethysmogrpahy as well as hopefully with the trade secret lawsuit brand injunction beyond the US.

然後蘋果公司在特拉華州對我們提起訴訟。第一部分應該在十月下旬進行審判。然後我們的合作夥伴將針對廣泛的專利和反壟斷案件。希望明年就可以進行審判。如果我們贏得了我們的商業機密和專利案件，該案件甚至仍在加州的聯邦法院審理，他們應該能夠擴大我們的禁令，而不僅僅是將SPO2 限製到光電體積描記法，其中將包括脈搏率和光電體積描記法的其他相關參數，並希望與美國以外的商業機密訴訟品牌禁令。

So that's where we are at. There is some activity at customs and border where Apple has gone back to try to basically get around to ITC's injunction. We should hear back soon on that. We're hoping customs and border will not give them what they're asking for, but if they do, we'll have to go back to the ITC to make it clear what the injunction was supposed to be about. So that's where we are. I think we probably have another 2 to 3 years left, and we should be done.

這就是我們現在的處境。蘋果在海關和邊境採取了一些行動，試圖基本上繞過 ITC 的禁令。我們應該很快就會收到回覆。我們希望海關和邊境不會滿足他們的要求，但如果他們這樣做了，我們將不得不回到國際貿易委員會以明確禁令的內容。這就是我們現在的情況。我認為我們可能還剩下 2 到 3 年的時間，我們應該完成這項工作。

Mike Matson.

麥克馬特森.

First, just on the guidance, given what you did in the second quarter where you're guiding for the third quarter, you can kind of back into what it means for the fourth quarter for revenue and EPS growth, and it seems like, the, that's really where that raises effectively falling both for revenue and for EPS at least relative to where consensus was for the third quarter.

首先，就指導而言，考慮到您在第二季度所做的事情以及對第三季度的指導，您可以回顧一下第四季度的收入和每股收益增長意味著什麼，看起來， ，這確實導致了營收和每股盈餘的有效下降，至少相對於第三季的共識而言是如此。

So for the fourth quarter looks kind of aggressively and assuming the third quarter comes in in line with the guidance. So I don't know if you had any comments there. I know, Micah, you did say something about gross margins maybe being expecting them to be stronger in the fourth quarter. So maybe that explains part of it.

因此，第四季看起來有點激進，假設第三季符合指引。所以我不知道你對此有何評論。我知道，Micah，您確實談到了毛利率，也許預計第四季度毛利率會更高。所以也許這可以解釋部分原因。

Yeah, absolutely. So a couple of things there. So if you look at kind of our guidance now versus our prior guidance. Top line, we're increasing $25 million for health care at the midpoint. It's really distributed that increase pretty evenly between Q3 and Q4 in terms of percentage increase. If you look at Q3, the midpoint is around just a little over 10% for Q3 growth.

是的，絕對是。有幾件事。因此，如果你看看我們現在的指導與我們先前的指導。最重要的是，我們中間增加了 2500 萬美元用於醫療保健。它確實分佈在第三季和第四季之間，就百分比成長而言，成長相當均勻。如果你看一下第三季度，第三季成長的中點大約是 10% 多一點。

We're about 9% growth in Q4. And so, we, I don't view it as more risk on the Q4 guide, but feel like we've put a reasonable range around that for the fourth quarter. If you look at our earnings per share, we're up about $0.2 at the midpoint, and we do have a little bit more coming from the fourth quarter. Some of that as though is we're seeing a better tax rate in the fourth quarter and full year as well.

第四季的成長率約為 9%。因此，我不認為第四季度的風險更大，但感覺我們已經為第四季度的風險設定了合理的範圍。如果你看一下我們的每股收益，我們的中位數成長了約 0.2 美元，而第四季的收益確實增加了一些。其中一些似乎是我們在第四季度和全年看到了更好的稅率。

So that's driving some of the earnings there. But the gross margin improvement from last guide is up about 110 basis points in Q3 and Q4 for the consolidated business. Q4 is 90 basis points. So I think we're, when I look at the guidance, you can see an increase pretty consistently with both Q3 and Q4. The only difference there would be more of the tax rate benefit that we're seeing and expecting for the fourth quarter.

所以這推動了那裡的一些收入。但綜合業務第三季和第四季的毛利率較上一份指南提高了約 110 個基點。第四季為 90 個基點。因此，我認為，當我查看指導時，您可以看到第三季和第四季的成長非常一致。唯一的區別是我們在第四季度看到和預期的稅率優惠會更多。

Okay, got it. And then just looking into next year, and I know you're not giving guidance, but one of the things I think that has helped your gross margin this year in addition to Malaysia is just a mix shift where you've had more sensor growth and your boards have been, boards and capital have been.

好的，明白了。然後展望明年，我知道你沒有提供指導，但我認為除了馬來西亞之外，今年對你的毛利率有所幫助的一件事就是混合轉變，你的傳感器增長更多你們的董事會、董事會和資本都曾經如此。

So I would imagine that, that kind of reverses next year. So is that, could that be sort of a material headwind to gross margin in '25, if that does play out that way?

所以我想明年這種情況會逆轉。那麼，如果情況確實如此的話，這是否會對 25 年的毛利率構成重大阻力？

Yeah, Mike, I don't expect that to be a big headwind. I think we do believe that the capital environment's going to stabilize rather than being down double digits like it was this year, especially with our drivers starting to pick up and they're stepping back up from the low point we saw in Q1, but we still expect very strong growth in consumable revenue.

是的，麥克，我不認為這會是一個很大的阻力。我認為我們確實相信資本環境將會穩定下來，而不是像今年那樣下降兩位數，特別是隨著我們的司機開始回升，他們正在從第一季的低點回升，但我們仍然預計消費品收入將出現非常強勁的成長。

So, and then any of the headwind that would be on mix. We're trying to offset that with cost reduction projects that we're working on with taking cost out of products as well as the the full year benefit of Malaysia transitions. So there's going to be some puts and takes in there, but we still feel very good that we'll be on track to that cadence of margin expansion going into next year.

所以，然後是混合中可能出現的任何逆風。我們正試圖透過我們正在進行的成本削減項目來抵消這一影響，這些項目旨在降低產品成本以及馬來西亞轉型的全年效益。因此，將會有一些看跌期權和買入期權，但我們仍然感覺非常好，因為我們將步入明年的利潤率擴張節奏。

We also, we don't have the year-over-year headwinds of performance-based comp, like we did this year. This year, if you look at our operating margins, we are actually flat year-over-year. We're 15.3% guidance this year versus last year, we landed at 15.3% operating margin despite about 400 basis points of headwinds in performance-based comp. So that headwind will no longer be there, and we should get back on to a good margin expansion cadence going into 2025.

我們也沒有像今年那樣面臨基於績效的補償的逐年不利因素。今年，如果你看看我們的營業利潤率，你會發現我們實際上與去年同期持平。與去年相比，我們今年的指導值為 15.3%，儘管基於績效的比較存在約 400 個基點的阻力，但我們的營業利潤率仍達到 15.3%。因此，這種逆風將不再存在，我們應該在 2025 年之前恢復良好的利潤率擴張節奏。

Okay. Got it. Thank you.

好的。知道了。謝謝。

Jayson Bedford.

傑森貝德福德。

Good afternoon. Thanks for taking the questions. Maybe just a couple. Micah, maybe just to an earlier line of questioning on drivers and I may have misheard it, but on the 59,000 drivers that you sold this quarter, are you implying that half of them were new, meaning not replacing legacy drivers?

午安.感謝您提出問題。也許只是一對。Micah，也許只是針對之前對驅動程式的提問，我可能聽錯了，但是對於您本季度售出的59,000 個驅動程序，您是否暗示其中一半是新驅動程序，這意味著不會替換舊驅動程式？

Yes. So to grow our top line, half of those drivers are new incremental drivers. And that's what's required to grow that top line somewhere between 25,000 to 30,000 drivers is what we need to deliver the top line growth that we're seeing this year. So that's, the rest of it is literally replacing our existing installed base due to the size we are in the market today.

是的。因此，為了增加我們的收入，其中一半的驅動因素是新的增量驅動因素。這就是將司機數量增加到 25,000 至 30,000 名所需的條件，也是我們今年實現收入成長所需的條件。也就是說，由於我們當今市場的規模，其餘部分實際上正在取代我們現有的安裝基礎。

Okay. Have you seen any on the capital side, any changes in ordering patterns from OEMs? I know that's been a little sluggish of late.

好的。您是否看到資本方面、整車廠的訂購模式有任何變化？我知道最近有點遲緩。

The question was ordering patterns from OEMs?

問題是從 OEM 訂購模式？

Correct.

正確的。

Yeah. So the OEMs last year, as we talked about before, they had excess inventory. And they've, we feel like they burned through a lot of that down in Q1, which was the trough of our driver shipments. Their, Q2 stepping up, and we believe that we'll be back up above the 60,000 a quarter in the back half of the year and we think that we should see that back into normal ordering patterns either by Q4 or early or Q1 of next year.

是的。因此，正如我們之前談到的，去年的原始設備製造商庫存過剩。我們覺得他們在第一季消耗了很多，這是我們驅動程式出貨量的低谷。他們的第二季度有所增加，我們相信我們將在今年下半年恢復到每季度 60,000 個以上，我們認為我們應該看到在第四季度或下個年初或第一季之前恢復正常的訂購模式年。

Okay. And just last one for me. Just in terms of the potential separation and just disclosure around that August 15 date. Should we expect the public announcement either way in and around that August 15 date?

好的。對我來說只是最後一件。僅就可能的分居和 8 月 15 日前後的披露而言。我們是否應該期待 8 月 15 日及其前後的公告？

Well, the August 15 is the time we've given an exclusivity. Whether or not there will have something final that the Board can approve or not could come before or after. So there's really no magic date about August 15, except that you would think if they want to do something, it would come before them or they would ask for another extension. So I don't know if we'll have an announcement or not, we will have to see.

好吧，8 月 15 日是我們給予排他性的時間。董事會能否批准的最終決定可能會在此之前或之後提出。因此，8 月 15 日確實沒有什麼神奇的日期，除非你會認為如果他們想做某事，它會在他們之前到來，或者他們會要求再次延期。所以我不知道我們是否會發佈公告，我們必須看看。

Okay. Thank you.

好的。謝謝。

Thank you.

謝謝。

Vik Chopra.

維克·喬普拉。

Thank you for taking my question. You previously noted that your guidance assuming 0% to 1% (Interpreted) patient growth? I know you mentioned a couple of comments that some public hospitals have been. What are you now expecting guidance for 2024?

感謝您回答我的問題。您之前指出，您的指導假設患者成長率為 0% 到 1%（解釋）？我知道您提到了一些公立醫院的一些評論。您現在對 2024 年有何期待？

Yeah, great question. So right now, we're somewhere around 2.5% to 4% is implied in the guidance for the year. And that's pretty consistent with what we're hearing out there in the market with what we're seeing with reported admission growth and expectations that are laid out for the year, and that's implied in the back in Q3 and Q4 as well.

是的，很好的問題。因此，目前，今年的指導中暗示了 2.5% 至 4% 左右。這與我們在市場上聽到的情況以及我們所看到的今年的入場人數增長和預期非常一致，這也暗示在第三季和第四季的後面。

Got it. And I think I forgot (inaudible)Dino Weinstock on for Vik Chopra. Just a follow up from me. On the guidance, what gets you to the low versus the high end of your guidance range?

知道了。我想我忘了（聽不清楚）迪諾·溫斯托克（Dino Weinstock）代替維克·喬普拉（Vik Chopra）。只是我的後續行動。在指導方面，是什麼讓你達到指導範圍的低端和高端？

Well, a lot of it is really driven by census. We've already kind of modeled in the new hospital conversions. We're layering those in, also with timing of installations through the rest of the year. So a lot of it is really dependent around inpatient census growth, inpatient surgeries.

嗯，其中很多確實是由人口普查驅動的。我們已經對新醫院的改造進行了建模。我們正在對這些進行分層，並在今年剩餘時間安排安裝時間。因此，其中很大一部分實際上取決於住院患者人口普查的增長和住院手術的增長。

We've seen positive trends on inpatient surgeries. I think those were up about 3% is what one of the large public hospitals quoted this past quarter, whereas actually outpatient was down, I think a couple of points. So I think trends are going in our favor.

我們看到住院手術的正面趨勢。我認為一家大型公立醫院上個季度的報價上漲了約 3%，而實際上門診量下降了，我認為有幾點。所以我認為趨勢正在朝著對我們有利的方向發展。

But I'd say it's really around the spread on the, our expectations on inpatient census. Capital, we've pretty much, we've seen a drop in capital year-over-year, I think it's down close to on the full year, we're expecting a down close to 15% with consumables up around 14%, 15%. So that's kind of where, what's implied in the guidance range.

但我想說，這實際上與我們對住院人口普查的期望有關。資本，我們幾乎看到資本同比下降，我認為接近全年下降，我們預計下降接近 15%，消耗品增長約 14%， 15%。這就是指導範圍中隱含的內容。

I think we have time for one more question.

我想我們還有時間再問一個問題。

Operator, next question, please.

接線員，請下一個問題。

Matt Taylor.

馬特泰勒。

Yeah, thanks for taking the question. I did want to ask you about the estimates of the separation that you put in this presentation versus the prior one?

是的，感謝您提出問題。我確實想問一下您在本次演示中與上一次演示中的分離估計值？

So really two clarification questions. Firstly, is the difference between the profitability with and without Consumer Health is that what are spending on some of the projects in consumer health in the new presentation?

所以確實有兩個澄清問題。首先，有消費者健康和沒有消費者健康的獲利能力之間的差異是否在於新演示中消費者健康的一些項目的支出是多少？

And then Micah, I was hoping you could provide any other comments to help us bridge from the prior representation to the new one, if there were any other assumptions that were different or obviously some of the core assumptions have changed.But just wanted to get your take on that?

然後，Micah，我希望您能提供任何其他評論，以幫助我們從先前的表示形式過渡到新的表示形式，如果有任何其他假設不同，或者顯然某些核心假設已經發生了變化。你對此有何看法？

Yes, it's pretty consistent to what we showed. I mean, we're focused more around the midpoint. I think that's where we're kind of dialing in previously, we're put some ranges around it, but our best estimate we want to show to simplify the reconciliation between the two scenarios, one to simplify that.

是的，它與我們所展示的非常一致。我的意思是，我們更專注於中點。我認為這就是我們之前所做的事情，我們圍繞它設定了一些範圍，但我們希望展示我們的最佳估計，以簡化兩種情況之間的協調，一個是為了簡化這種情況。

So we're expecting about $37 million of adjustments, if you were to separate out consumer health in addition to the audio business, that's about 260 basis points improvement to get us to about 24% at the mid point for professional healthcare, which is kind of where we expect to land. And that's where we've been showing a lot of the, when we showed our long-range plan, we were jumping off of that midpoint. So everything is pretty much in line there.

因此，我們預計會有約3700 萬美元的調整，如果你將消費者健康和音訊業務分開，這將帶來約260 個基點的改進，使我們的專業醫療保健的中間值達到約24%，這很好我們預計著陸的地方。這就是我們展示了很多內容的地方，當我們展示我們的長期計劃時，我們就從中點出發。所以一切都差不多。

If you look at it, $37 million, we have reduced some costs for Consumer Health spend this year to drive some margin improvement there. But that assumes cost of goods sold, our R&D expenses, selling and marketing expenses and certain other corporate overhead expenses into that number, of the $37 million that we carve out as an operating loss.

如果你看一下，我們今年已經減少了 3700 萬美元的消費者健康支出成本，以推動利潤率的提高。但這是假設銷售成本、我們的研發費用、銷售和行銷費用以及某些其他公司管理費用都計入這個數字，即我們計入的 3700 萬美元營運虧損。

So that's pretty consistent with prior what we showed previously. Just a few tweaks there on the operating expenses for the year, but it's still getting us to the right endpoint of 24% margins for professional Health Care.

所以這與我們之前展示的內容非常一致。儘管對今年的營運費用進行了一些調整，但它仍然使我們達到了專業醫療保健利潤率 24% 的正確終點。

Okay. And so is there any change in tax or below the line to get to these new numbers or is that all consistent?

好的。那麼，為了獲得這些新數字，稅收或線下是否有任何變化，或者這一切是否一致？

No, this is, nothing really below the line other than the guidance range and raise. The other thing would be is we're seeing closer to a 25% tax rate as opposed to 26%. And I think that we have an opportunity to continue to see a tax rate there going forward for the professional healthcare business before we are showing about 26%. So that would give us an upside or more confidence to achieve that $8 per share in 5 years.

不，除了指導範圍和加註之外，沒有什麼真正低於線的。另一件事是我們看到的稅率更接近 25%，而不是 26%。我認為，在我們顯示 26% 左右之前，我們有機會繼續看到專業醫療保健業務的稅率。因此，這將使我們更有信心在 5 年內實現每股 8 美元的目標。

And maybe I could just ask, you seem very keen on this plan with the JV versus just separating consumer sorry, separating the audio business. Could you articulate more about why you like that plan so much better seemingly, what do you think that does for you strategically or financially that you wouldn't get with just separating audio?

也許我可以問一下，您似乎非常熱衷於與合資企業的這項計劃，而不是僅僅分離消費者抱歉，分離音頻業務。您能否詳細說明為什麼您看起來更喜歡這個計劃，您認為它在戰略上或財務上對您有什麼好處，而僅通過分離音頻是無法實現的？

Well, I think, we one, we get a lot more cash than we probably could get for the audio business alone. But also two, we will get an upside into the future that we had envisioned. While we understand the short term, the consumer health business is hurting our EPS due to the investment we're making in that. We believe long term, it has a potential of becoming a really successful. That's why to us, we acquired Sound United because we thought we needed that consumer go to sell the Freedom Watch to sell our hearing aid and hearable.

好吧，我認為，我們獲得的現金比僅靠音訊業務獲得的現金要多得多。但還有第二點，我們將在我們所設想的未來中獲得積極的一面。雖然我們了解短期情況，但由於我們在消費者健康業務上的投資，消費者健康業務正在損害我們的每股盈餘。我們相信，從長遠來看，它有潛力取得真正的成功。這就是我們收購 Sound United 的原因，因為我們認為我們需要消費者透過銷售 Freedom Watch 來銷售我們的助聽器和耳戴裝置。

And if we don't have that team, it's going to be very tough to really make a success out of the wearables and the hearable from a Health Care company, and can unfortunately, add risk to the health care business because it de-focuses the team that's delivering on the Health Care business to also try to do something with the Consumer Health business.

如果我們沒有這個團隊，那麼醫療保健公司的可穿戴設備和可聽設備就很難真正取得成功，而且不幸的是，這會增加醫療保健業務的風險，因為它分散了注意力負責醫療保健業務的團隊也嘗試在消費者健康業務上做一些事情。

Okay. Thank you, guys.

好的。謝謝你們，夥計們。

Thank you so much, everyone. We appreciate you joining us today. We look forward to reporting our Q3 numbers and wish you a great end of your summer. Thank you.

非常感謝大家。我們感謝您今天加入我們。我們期待報告第三季的數據，並祝您度過一個愉快的夏天。謝謝。

The meeting is now concluded. You may now disconnect.

會議現已結束。您現在可以斷開連線。