安森美 (ON) 2016 Q4 法說會逐字稿

Good day, ladies and gentlemen, and welcome to the ON Semiconductor fourth quarter 2016 earnings conference call.

女士們、先生們，美好的一天，歡迎參加安森美半導體 2016 年第四季財報電話會議。

(Operator Instructions)

（操作員說明）

It is now my pleasure to hand the conference over to Parag Agarwal, Vice President of Corporate Development and Investor Relations. Sir, the floor is yours.

現在我很高興將會議交給企業發展和投資者關係副總裁帕拉格·阿加瓦爾 (Parag Agarwal)。先生，地板是你的了。

Thank you, Brian. Good morning, and thank you for joining ON Semiconductor Corporation's fourth quarter 2016 quarterly results conference call. I am joined today by Keith Jackson, our President and CEO, and Bernard Gutmann, our CFO.

謝謝你，布萊恩。早安，感謝您參加安森美半導體公司 2016 年第四季業績電話會議。今天，我們的總裁兼執行長 Keith Jackson 和財務長 Bernard Gutmann 也加入了我的行列。

This call is being webcast on the Investor Relations section of our website at www.onsemi.com. A replay of this broadcast, along with our earnings release for the fourth quarter of 2016, will be available on our website approximately one hour following this conference call, and the recorded broadcast will be available for approximately 30 days following this conference call. The script for today's call and additional information related to our end markets, business segments, geographies, and channels are also posted on our website.

本次電話會議正在我們網站 www.onsemi.com 的投資者關係部分進行網路直播。本次電話會議後約一小時，我們將在我們的網站上提供本次廣播的重播以及我們 2016 年第四季度的收益發布，並且錄製的廣播將在本次電話會議後大約 30 天內提供。今天電話會議的腳本以及與我們的終端市場、業務部門、地區和管道相關的其他資訊也發佈在我們的網站上。

Our earnings release for this presentation includes certain non-GAAP financial measures. Reconciliation of these non-GAAP financial measures to most directly comparable measures under GAAP are in our earnings release, which is posted separately on our website in the Investors Relations section.

我們本次示範的收益發布包括某些非公認會計準則財務指標。這些非公認會計原則財務指標與公認會計原則下最直接可比較指標的對帳已在我們的收益報告中進行，該報告單獨發佈在我們網站的投資者關係部分。

During the course of this conference call, we will make projections or other forward-looking statements regarding future events or the future financial performance of the Company. The words believe, estimate, project, anticipate, intend, may, expect, will, plan, should, or similar expressions are intended to identify forward-looking statements. We wish to caution that such statements are subject to risks and uncertainties that could cause actual events or results to differ materially from the projections.

在本次電話會議期間，我們將對未來事件或公司未來財務表現做出預測或其他前瞻性陳述。相信、估計、預測、預期、打算、可能、期望、將、計劃、應該或類似表達等詞語旨在識別前瞻性陳述。我們希望提醒您，此類陳述存在風險和不確定性，可能導致實際事件或結果與預測有重大差異。

Important factors which can affect our business include factors that could cause actual results to differ from our forward-looking statements, business, including factors that could cause actual results to differ materially from statements are described in Form 10-Ks, Form 10-Qs, and other filings with the Securities and Exchange Commission. Additional factors are described in our earnings release for the fourth quarter of 2016. Our estimates may change, and the Company assumes no obligation to update forward-looking statements to reflect actual results, changed assumptions, other factors, except as required by law.

可能影響我們業務的重要因素包括可能導致實際結果與我們的前瞻性陳述不同的因素、業務，包括可能導致實際結果與表格10-Ks、表格10-Qs、表格10-Qs 中所述的陳述存在重大差異的因素。以及向美國證券交易委員會提交的其他文件。我們在2016 年第四季的收益報告中描述了其他因素。我們的估計可能會發生變化，並且公司不承擔更新前瞻性陳述以反映實際結果、變化的假設和其他因素的義務，法律要求的除外。

As indicated in our prior earnings release call, due to new and revised compliance and disclosure interpretations of the use of non-GAAP financial metrics by US-listed companies by the US Securities and Exchange Commission, the Company has with revised its practice with respect to guidance and the use of non-GAAP measures. Please see the earnings release for additional information.

正如我們在先前的財報電話會議中所指出的，由於美國證券交易委員會對美國上市公司使用非公認會計原則財務指標的合規性和披露解釋進行了新的和修訂，公司已修改了以下方面的做法：指導和非公認會計原則措施的使用。請參閱收益發布以了解更多資訊。

We will be holding our 2017 Analyst Day on March 10 in Phoenix, Arizona. If you haven't received an invitation to the event, please request an invitation to the Investor Relations section of our website, or contact us.

我們將於 3 月 10 日在亞利桑那州鳳凰城舉辦 2017 年分析師日。如果您尚未收到活動邀請，請造訪我們網站的投資者關係部分索取邀請函，或與我們聯絡。

For all synergy-related discussion on this call, we have used Fairchild's 2015 results as a base for our comparisons. Now, let me turn it over to Bernard Gutmann, who will provide an overview of the fourth quarter 2016 results. Bernard?

對於本次電話會議中所有與綜效相關的討論，我們使用 Fairchild 2015 年的表現作為比較的基礎。現在，讓我將其交給伯納德·古特曼 (Bernard Gutmann)，他將概述 2016 年第四季度的業績。伯納德？

Thank you, Parag, and thank you, everyone, for joining us today. We handily exceeded our revenue and margin guidance for the fourth quarter of 2016, and posted strong free cash flow performance. Accelerated progress on Fairchild integration, improving demand environment, and solid execution of our organic business were the key drivers of better-than-expected results.

謝謝帕拉格，也謝謝大家今天加入我們。我們輕鬆超越了 2016 年第四季的營收和利潤指引，並公佈了強勁的自由現金流表現。飛兆半導體整合的加速進展、需求環境的改善以及我們有機業務的紮實執行是業績優於預期的關鍵驅動力。

Now let me provide you additional details on our fourth-quarter 2016 results. Total revenue for the fourth quarter of 2016 was approximately $1.261 billion, an increase of approximately 33% as compared to the third quarter of 2016. Fourth-quarter revenue included the contribution of approximately $358 million from our acquisition of Fairchild Semiconductor, which closed on September 19, 2016.

現在讓我向您提供有關 2016 年第四季度業績的更多詳細資訊。 2016 年第四季總營收約為 12.61 億美元，較 2016 年第三季成長約 33%。第四季營收包括我們對仙童半導體公司（9 月完成的收購）貢獻的約 3.58 億美元2016 年19 日。

Revenue performance of our organic business and that of Fairchild was significantly better than normal seasonality. Our organic business, which excluded Fairchild, grew by approximately 7% year over year during the fourth quarter.

我們的有機業務和飛兆半導體的收入表現明顯優於正常的季節性。我們的有機業務（不包括仙童半導體）在第四季度同比增長約 7%。

GAAP net income for the fourth quarter was $0.26 per diluted share. GAAP income before income taxes for the fourth quarter was approximately $18.2 million, as compared to $87.3 million in the third quarter. Non-GAAP income before income tax for the fourth quarter was approximately $132 million.

第四季 GAAP 攤薄後每股淨利為 0.26 美元。第四季所得稅前 GAAP 收入約為 1,820 萬美元，而第三季為 8,730 萬美元。第四季所得稅前非公認會計準則收入約為 1.32 億美元。

Net cash paid for taxes in the fourth quarter was approximately $8.2 million, and diluted shares outstanding were approximately 427 million. Non-GAAP income before tax for the third quarter was approximately $107 million. Net cash paid for taxes in the third quarter was approximately $6.5 million, and diluted shares outstanding were approximately 420 million.

第四季支付的稅款淨額約為 820 萬美元，稀釋後的已發行股票約為 4.27 億股。第三季非公認會計準則稅前收入約為 1.07 億美元。第三季繳稅的淨現金約為 650 萬美元，稀釋後的已發行股票約為 4.2 億股。

GAAP gross margin for the fourth quarter was 30.5%, as compared to 34.6% for the third quarter. Non-GAAP gross margin for the fourth quarter was 35.2%, as compared to 35.9% in the third quarter. Better-than-expected non-GAAP gross margin in the fourth quarter was driven by strong progress on Fairchild integration, and higher-than-expected revenue.

第四季 GAAP 毛利率為 30.5%，第三季為 34.6%。第四季非公認會計準則毛利率為 35.2%，第三季為 35.9%。第四季非公認會計原則毛利率優於預期是由於仙童整合的強勁進展以及高於預期的收入。

GAAP operating margin for the fourth quarter of 2016 was approximately 4.4%, as compared to approximately 4.9% in the prior quarter. Our non-GAAP operating margin for the fourth quarter was 12.9%, flat as compared to the third quarter. GAAP operating expenses for the fourth quarter were approximately $329 million, as compared to approximately $282 million for the third quarter of 2016. Non-GAAP operating expenses for the fourth quarter were approximately $281 million, as compared to approximately $218 million in the third quarter.

2016 年第四季的 GAAP 營運利潤率約為 4.4%，上一季約為 4.9%。我們第四季的非 GAAP 營業利潤率為 12.9%，與第三季持平。第四季 GAAP 營運費用約為 3.29 億美元，而 2016 年第三季約為 2.82 億美元。第四季非 GAAP 營運費用約為 2.81 億美元，而第三季約為 2.18 億美元。

Although our revenue exceeded the higher end of the guidance, operating expenses were close to the mid-point of our guidance range. Again, solid progress on synergies from Fairchild, and strong execution on our organic business were the reasons for strong operating expense performance. The sequential increase in operating expenses was driven primarily by the inclusion of the first full quarter of financial results for Fairchild in the fourth quarter, and higher variable compensation accrual resulting from improved operating performance.

儘管我們的收入超過了指導範圍的上限，但營運費用接近我們指導範圍的中點。同樣，仙童協同效應的紮實進展以及我們有機業務的強勁執行力是營運費用表現強勁的原因。營運費用的環比增長主要是由於將飛兆半導體第四季度的第一個完整季度財務業績納入其中，以及營運業績改善帶來的可變薪酬應計額增加。

We had strong free cash flow performance in the fourth quarter. We define free cash flow as cash flow from operations, less capital expenditures. Fourth quarter free cash flow was approximately $179 million, as compared to approximately $97 million in the third quarter. Operating cash flow for the fourth quarter was approximately $229 million, and capital expenditure was approximately $50 million. Operating cash flow for the third quarter was approximately $133 million, and capital expenditures were approximately $36 million.

我們第四季的自由現金流表現強勁。我們將自由現金流定義為營運現金流減去資本支出。第四季自由現金流約為 1.79 億美元，而第三季約為 9,700 萬美元。第四季營運現金流約2.29億美元，資本支出約5,000萬美元。第三季營運現金流約1.33億美元，資本支出約3,600萬美元。

We exited the fourth quarter of 2016 with cash, cash equivalence, and short-term investments of approximately $1.028 billion, as compared to approximately $880 million in the third quarter. Subsequently in January, we used approximately $445 million to redeem all of the outstanding 2.625 convertible senior subordinated notes due [2006] Series B.

2016 年第四季結束時，我們的現金、現金等價物和短期投資約為 10.28 億美元，而第三季約為 8.8 億美元。隨後在 1 月份，我們使用約 4.45 億美元贖回了所有到期的 [2006] B 系列未償還 2.625 可轉換高級次級票據。

At the end of the fourth quarter of 2016, days of inventory on hand, adjusted for fair market value step-up, were 113 days, flat as compared to the third quarter. In the fourth quarter of 2016, distribution inventory days were approximately flat as compared to the third quarter. For the fourth quarter of 2016, our lead times were approximately flat quarter over quarter. Our global factory utilization in the fourth quarter was slightly up sequentially.

2016年第四季末，以公平市價增量調整後的現有庫存天數為113天，與第三季持平。 2016年第四季，分銷庫存天數與第三季基本持平。 2016 年第四季度，我們的交貨時間與上季基本持平。第四季我們的全球工廠利用率較上季略有上升。

Now let me provide you an update on performance by our business units, starting with the power solutions group or PSG. Revenue for PSG was approximately $620 million. Revenue for our analog solutions group for the fourth quarter of 2016 was approximately $469 million. Revenue for the image sensor group was approximately $171 million. Now I would like to turn the call over to Keith Jackson for additional comments on the business environment. Keith?

現在讓我向您介紹我們業務部門績效的最新情況，首先是電源解決方案小組或 PSG。 PSG 的營收約為 6.2 億美元。我們的模擬解決方案部門 2016 年第四季的營收約為 4.69 億美元。影像感測器部門的收入約為 1.71 億美元。現在我想將電話轉接給基斯傑克森（Keith Jackson），請他就商業環境發表更多評論。基思？

Thanks, Bernard. I am very pleased with our results for the fourth quarter of 2016. For the first full quarter that includes results from Fairchild, we are off to a solid start. We exceeded our revenue guidance, and we posted strong free cash flow and margin performance. Our results for the fourth quarter provide clear evidence of strong execution on the integration of Fairchild, and the results also validate our strategic and financial rationale for the acquisition. At this point, we are tracking significantly ahead of our planned synergy target for Fairchild.

謝謝，伯納德。我對 2016 年第四季的業績感到非常滿意。對於包含 Fairchild 業績的第一個完整季度，我們有了一個良好的開端。我們超越了收入指導，並且公佈了強勁的自由現金流和利潤率表現。我們第四季的業績清楚地證明了仙童半導體整合的強大執行力，而該結果也驗證了我們收購的策略和財務理由。目前，我們正在大幅提前實現仙童半導體計畫的協同目標。

The performance of Fairchild to date has far exceeded our expectations, and we expect to see positive revenue synergies as a result of the combination of these two companies. We are very encouraged by the significantly above-seasonal revenue performance by Fairchild in the fourth quarter, and current indications point towards continued strength in Fairchild's revenue in the near term. During the fourth quarter, bookings for Fairchild were at highest level when compared to bookings during the last three years. We are seeing significant cross-selling opportunities in various end markets, as we leverage customer relationships, sales reach, and distribution network of the combined company to win designs.

迄今為止，飛兆半導體的表現遠遠超出了我們的預期，我們預計這兩家公司的合併將帶來正面的收入綜效。我們對飛兆半導體第四季顯著高於季節性的營收表現感到非常鼓舞，目前的跡象表明飛兆半導體的營收在短期內將持續強勁。與過去三年的預訂量相比，第四季度仙童半導體的預訂量達到了最高水準。我們在各個終端市場看到了巨大的交叉銷售機會，因為我們利用合併後公司的客戶關係、銷售範圍和分銷網絡來贏得設計。

We continue to make strong progress in the integration of Fairchild, and we are tracking significantly ahead of our planned synergy targets. We are on track to begin in-sourcing of Fairchild's back-end operations by the end of the year. IT and systems integration is progressing well, and we expect to complete that part of the integration in the fourth quarter of the current year.

我們在仙童半導體的整合方面繼續取得重大進展，並且正在顯著地提前實現我們計劃的協同目標。我們預計在今年年底前開始內包仙童半導體的後端業務。 IT和系統整合進展順利，我們預計在今年第四季完成這部分整合。

We have achieved sizable synergies related to purchasing, planning, and other related functions in the cost of goods sold. We continue to make significant progress on operating expense rationalization, and exiting the fourth quarter of 2016, we have been able to realize significant operating expense synergies. As I stated earlier, our solid progress in the integration of Fairchild is reflected in our results for the fourth quarter of 2016.

我們在採購、規劃和其他相關職能的銷售成本方面實現了相當大的綜效。我們繼續在營運費用合理化方面取得重大進展，截至 2016 年第四季度，我們已經實現了顯著的營運費用綜效。正如我之前所說，我們在整合 Fairchild 方面取得的堅實進展反映在我們 2016 年第四季的業績中。

We remain very comfortable with achieving our annual synergies run rate target of $160 million exiting 2017. As we have indicated in our previous announcements, this $160 million annual run rate target is based on Fairchild's results for full year 2015. While we are utilizing synergies from Fairchild, we are keeping a tight control on cost structure of our organic business. We will provide further updates on the financial and strategic impact of the acquisition at our Analyst Day on March 10, 2017.

我們仍然對實現2017 年1.6 億美元的年度協同效應運行率目標感到非常滿意。正如我們在先前的公告中所指出的，這一1.6 億美元的年度運行率目標是基於Fairchild 2015 年全年的業績. Fairchild，我們正在嚴格控制有機業務的成本結構。我們將在 2017 年 3 月 10 日的分析師日上提供有關此次收購的財務和策略影響的進一步更新。

Let me now comment on the business trends in the fourth quarter. During the fourth quarter, demand trends and bookings were generally healthy across most end markets and geographies. End-market trends were generally in line with expectations. Recent commentary from customers points to an improving demand environment.

我現在談談第四季的業務趨勢。第四季度，大多數終端市場和地區的需求趨勢和預訂整體健康。終端市場趨勢整體符合預期。客戶最近的評論顯示需求環境正在改善。

I'm very optimistic about our prospects for 2017. Our business remains strong, and our mention in our strategic markets, which include automotive, industrial, and communications, continue to grow.

我對 2017 年的前景非常樂觀。我們的業務依然強勁，我們在汽車、工業和通訊等策略市場中的提及度持續成長。

Our design win pipeline continues to grow, driven by our innovative products in the automotive, industrial, and communication markets. Examples of such products include power integrated modules, USB Type C, image sensors for ADAS and industrial markets, LED lighting for automotive market, server and cloud power management, and other power management, analog, and sensor products for our strategic end markets.

在我們在汽車、工業和通訊市場的創新產品的推動下，我們的設計贏得管道不斷增長。此類產品的範例包括電源整合模組、USB Type C、用於ADAS 和工業市場的影像感測器、用於汽車市場的LED 照明、伺服器和雲端電源管理，以及用於我們戰略終端市場的其他電源管理、模擬和感測器產品。

Furthermore, our strong engagement with our distribution partners and a disruption in the distribution supply chain due to actions taken by certain of our competitors may provide us with additional revenue tail wind. I'm very excited about the cash flow potential of the new Company. With synergies from Fairchild and strong execution and cost control, we are well-positioned to drive meaningful growth in our free cash flow in the current year and following years.

此外，我們與分銷合作夥伴的密切合作以及由於某些競爭對手採取的行動而造成的分銷供應鏈中斷可能會為我們帶來額外的收入順風。我對新公司的現金流潛力感到非常興奮。憑藉仙童半導體的協同效應以及強大的執行力和成本控制，我們處於有利位置，可以推動今年和未來幾年自由現金流的有意義增長。

Now I will provide details of the progress in our various end markets. With the inclusion of Fairchild's results for a small part of the third quarter and for full fourth quarter, the normal quarter-over-quarter comparison that we have historically provided is not quite as meaningful for the fourth quarter, therefore I will limit my remarks to a qualitative summary and limited quantitative data.

現在我將詳細介紹我們在各個終端市場的進展。由於納入了飛兆半導體第三季度一小部分和第四季度整個季度的業績，我們歷史上提供的正常季度環比對第四季度的意義不大，因此我的評論僅限於定性總結和有限的定量數據。

The automotive end market contributed revenue of approximately $378 million, and represented approximately 30% of our revenue for the fourth quarter. We continue to see strong demand for our image sensors and integrated co-processors for ADAS applications. Safety requirements driven by NCAP and STAR ratings are driving steep adoption of ADAS in a higher number of cameras in vehicles. We continue to grow our technology and market leadership in ADAS and we are actively engaged with leading global automotive OEMs and tier-one suppliers on many ADAS-related programs.

汽車終端市場貢獻了約3.78億美元的收入，約占我們第四季營收的30%。我們繼續看到 ADAS 應用對我們的影像感測器和整合協處理器的強勁需求。 NCAP 和 STAR 評級推動的安全要求正在推動 ADAS 在更多車輛攝影機中的廣泛採用。我們不斷增強在 ADAS 領域的技術和市場領導地位，並積極與全球領先的汽車原始設備製造商和一級供應商合作開展許多 ADAS 相關項目。

We are also seeing cascading of our park-assist solutions down to mid-range vehicles from high-end vehicles. We continue to reinforce our leadership in automotive LED lighting, and adoption of our front and rear LED lighting driver solutions continue to accelerate globally. Revenue in the first quarter for the automotive end market is expected to be up quarter over quarter.

我們還看到我們的停車輔助解決方案從高端車輛級聯到中檔車輛。我們繼續鞏固我們在汽車 LED 照明領域的領導地位，並且我們的前後 LED 照明驅動器解決方案的採用繼續在全球加速。汽車終端市場第一季營收預計將季增。

The industrial end market, which includes military, aerospace, and medical, contributed revenue of approximately $278 million, and represented approximately 22% of our revenue in the fourth quarter. In the machine vision market, we continue our momentum with our Python line of image sensors, and we are seeing a strong demand for our power integrated modules in the solar market.

包括軍事、航空航太和醫療在內的工業終端市場貢獻了約2.78億美元的收入，約占我們第四季營收的22%。在機器視覺市場，我們透過 Python 系列影像感測器繼續保持勢頭，我們看到太陽能市場對我們的功率整合模組的強勁需求。

We saw noticeable strength in our medical imaging business in the fourth quarter. Addition of medium and high-voltage MOSFETs and IGBTs from Fairchild should help us accelerate our growth in the industrial market. Revenue in the first quarter for the industrial end market is expected to be up quarter over quarter.

我們在第四季度看到了醫學影像業務的顯著成長。增加 Fairchild 的中壓和高壓 MOSFET 和 IGBT 應有助於我們加速在工業市場的成長。工業終端市場第一季營收預計將季增。

The communications end market, which includes both networking and wireless, contributed revenue of approximately $279 million, and represented approximately 22% of our revenue in the fourth quarter. In the smartphone market, we benefited from ramp of new platforms by global and Chinese OEMs. We are seeing increasing adoption of fast charging and USB Type C in smartphone market, and we are well-positioned to benefit from accelerated penetration of these technologies. We are leveraging our relationships in the smartphone ecosystem to cross-sell Fairchild's products, and customer reception of our combined portfolio has been strong. Revenue in the first quarter for communications end market is expected to be down quarter over quarter.

包括網路和無線在內的通訊終端市場貢獻了約 2.79 億美元的收入，約占我們第四季營收的 22%。在智慧型手機市場，我們受益於全球和中國原始設備製造商新平台的增加。我們看到智慧型手機市場越來越多地採用快速充電和 USB Type C，我們已做好充分準備從這些技術的加速滲透中受益。我們正在利用我們在智慧型手機生態系統中的關係來交叉銷售仙童的產品，客戶對我們組合產品組合的接受度一直很高。預計通訊終端市場第一季營收將季減。

The computing end market contributed revenue of approximately $147 million, and represented approximately 12% of our revenue in the fourth quarter. As there are many common participants in the PC, server, and cloud markets, we are leveraging our relationships in the PC market to win designs for Fairchild's server and cloud-related products. We expect that server and cloud could be a growth driver for our computing revenue. Revenue in the first quarter for computing end market is expected to be down quarter over quarter.

計算終端市場貢獻了約1.47億美元的收入，約占我們第四季營收的12%。由於 PC、伺服器和雲端市場有許多共同參與者，我們正在利用我們在 PC 市場的關係來贏得 Fairchild 伺服器和雲端相關產品的設計。我們預計伺服器和雲端可能成為我們計算收入的成長動力。計算終端市場第一季的營收預計將季減。

The consumer end market contributed revenue of approximately $179 million, and represented approximately 14% of our revenue in the fourth quarter. Revenue in the first quarter for consumer end market is expected to be down quarter over quarter.

消費端市場貢獻了約1.79億美元的收入，約占我們第四季營收的14%。消費端市場第一季營收預計將季減。

In summary, I'm very excited about our prospects in the current year and beyond. Fairchild integration is off to a solid start, and progress thus far has exceeded our plans. Customer interest in the portfolio of the combined Company appears to be very strong, and we are seeing early evidence of positive revenue synergies. We expect to generate strong free cash flow, and aggressively de-lever our balance sheet. Now I would like to turn it back over to Bernard for our forward-looking guidance. Bernard?

總之，我對我們今年及以後的前景感到非常興奮。飛兆半導體的整合已經有了一個良好的開端，迄今為止的進展已經超出了我們的計劃。客戶對合併後公司的產品組合似乎非常感興趣，我們看到了積極的收入綜效的早期證據。我們預計將產生強勁的自由現金流，並積極去槓桿化我們的資產負債表。現在我想把它轉回給伯納德，以獲得我們的前瞻性指導。伯納德？

Thank you, Keith. Based on product booking trends, backlog levels, and estimated turns levels, we anticipate that total ON Semiconductor revenues will be approximately $1.215 billion to $1.265 billion in the first quarter of 2017. Backlog levels for the first quarter of 2017 represent approximately 80% to 85% of our anticipated first-quarter revenue.

謝謝你，基斯。根據產品預訂趨勢、積壓水平和預計週轉水平，我們預計 2017 年第一季安森美半導體總收入約為 12.15 億美元至 12.65 億美元。2017 年第一季積壓水平約為 80% 至 85%占我們預期第一季營收的百分比。

We expect inventory at distributors to be flat quarter over quarter on a dollar basis. We expect total capital expenditures of approximately $60 million to $70 million in the first quarter of 2017. For the first quarter of 2017, we expect GAAP gross margin in the range of 33.4% and 34.8%, and non-GAAP gross margin in the range of approximately 34% to 36%.

我們預計分銷商的庫存以美元計算季度環比持平。我們預計 2017 年第一季的總資本支出約為 6,000 萬至 7,000 萬美元。對於 2017 年第一季度，我們預計 GAAP 毛利率在 33.4% 至 34.8% 之間，非 GAAP 毛利率在約34%至36%。

Factory utilization in the first quarter is likely to be down sequentially. We expect total GAAP operating expenses of approximately $302 million to $330 million. Our GAAP operating expenses include the amortization of intangibles, restructuring, asset impairments, and other charges which are expected to be approximately $31 million to $45 million. We expect total non-GAAP operating expenses of approximately $271 million to $285 million.

第一季工廠利用率可能會季減。我們預計 GAAP 營運費用總額約為 3.02 億至 3.3 億美元。我們的 GAAP 營運費用包括無形資產攤銷、重組、資產減損和其他費用，預計約 3,100 萬至 4,500 萬美元。我們預計非 GAAP 營運費用總額約為 2.71 億美元至 2.85 億美元。

We anticipate first-quarter GAAP net other income and expenses, including interest expense, will be approximately $37 million to $41 million, which includes non-cash interest expense of approximately $4 million to $6 million. We anticipate our non-GAAP net other income and expense, including interest expense, will be approximately $33 million to $35 million.

我們預計第一季 GAAP 淨其他收入和支出（包括利息支出）約為 3,700 萬至 4,100 萬美元，其中包括約 400 萬至 600 萬美元的非現金利息支出。我們預計我們的非公認會計準則其他淨收入和支出（包括利息支出）將約為 3,300 萬至 3,500 萬美元。

Cash paid for income taxes in the first quarter of 2017 is expected to be approximately $16 million to $20 million. First-quarter cash tax payment is anticipated to be significantly higher than the remaining quarters of 2017, primarily due to the required timing of payments for prior-years' taxes for certain of our non-US subsidiaries. We expect full-year 2017 cash paid for income taxes to be approximately 10% of 2017 non-GAAP pre-tax income.

2017年第一季所得稅支付現金預計約1,600萬至2,000萬美元。第一季的現金稅款預計將顯著高於 2017 年剩餘季度，這主要是由於我們的某些非美國子公司要求繳納上一年稅款的時間。我們預計 2017 年全年所得稅支付現金將佔 2017 年非 GAAP 稅前收入的 10% 左右。

We also expect share-based compensation of approximately $15 million to $17 million in the first quarter of 2017, of which approximately $2 million is expected to be in cost of goods sold. The remaining amount is expected to be in operating expenses. This expense is included in our non-GAAP financial measures.

我們也預期 2017 年第一季的股權激勵約為 1,500 萬至 1,700 萬美元，其中約 200 萬美元預計將計入銷售成本。剩餘金額預計將用於營運費用。這筆費用包含在我們的非公認會計準則財務指標中。

Our diluted share count for the first quarter of 2017 is expected to be approximately 424 million shares based on the current stock price. Further details on share count and earnings-per-share calculations are provided regularly in our quarterly and annual reports on Forms 10-Q and Form 10-K. With that, I would like to start the Q&A session. Thank you and Brian, please open the line for questions.

根據目前股價，我們 2017 年第一季的稀釋後股份數量預計約為 4.24 億股。有關股份數量和每股盈餘計算的更多詳細資訊定期在我們的 10-Q 表格和 10-K 表格季度和年度報告中提供。接下來，我想開始問答環節。謝謝你和布萊恩，請打電話提問。

My pleasure, sir.

我很榮幸，先生。

(Operator Instructions)

（操作員說明）

Chris Danely, Citigroup.

克里斯丹尼利，花旗集團。

Thanks, guys. Now that you and Fairchild are officially joined at the hip, can you talk about the combined OpEx and revenue seasonality trends for the rest of the year?

多謝你們。既然您和 Fairchild 正式合作，您能談談今年剩餘時間的綜合營運支出和收入季節性趨勢嗎？

In general terms, as we have said we are ahead of our plan in achieving synergies. As Keith said in the prepared remarks, we will keep the ON expenses, the ON legacy expenses pretty much in control, and continue delivering the OpEx synergies as we have planned.

總的來說，正如我們所說，我們在實現協同效應方面領先於我們的計劃。正如 Keith 在準備好的演講中所說，我們將保持 ON 支出、ON 遺留支出幾乎得到控制，並繼續按照我們的計劃提供營運支出協同效應。

On the revenue side, one of the things to watch is the increased content as a percentage on the wireless side, so there is still going to be some seasonality that looks consumer-like; But we think it's going to be much more moderated. The first quarter, as you can see, a little less than 2% sequential. You should still see strong growth in the second and third quarters, and then the fourth quarter should be approximately flat. It will have some additional content from an NSAID side, but in general will be much more muted in the first quarter.

在收入方面，值得關注的事情之一是無線方面內容百分比的增加，因此仍然會有一些看起來像消費者的季節性因素；但我們認為它會更加溫和。如您所見，第一季環比增長略低於 2%。您應該仍然會看到第二季和第三季的強勁成長，然後第四季應該大致持平。它將有一些來自非類固醇抗發炎藥的額外內容，但總的來說，第一季會更加安靜。

Great. For my follow-up, Bernard, can you just be a little bit more specific on the OpEx? Do you think that this level in terms of dollars you can go down from here, or should we expect it to go up, but less than sales?

偉大的。對於我的後續行動，Bernard，您能否更具體地介紹一下營運支出？您認為以美元計算的這個水平可以從這裡下降，還是我們應該期望它上升，但小於銷售額？

Right now, we are guiding for the first quarter to go down. It will be going down to a mid-point of $278 million, which is $3 million less than in the first -- in the fourth quarter, of the total OpEx.

目前，我們預計第一季會下降。營運支出總額將降至 2.78 億美元的中位數，比第一季（第四季）減少 300 萬美元。

Okay, thanks.

好的謝謝。

Vivek, Arya, Bank of America.

維韋克，艾莉亞，美國銀行。

Thank you for taking my question, and congratulations on the good results. First question, on the pricing environment, a number of your peers and families have spoken about a more favorable pricing environment. Are you seeing that also? I just want to see if there is a way to tie if the improvement is there to your target of getting 40% gross margin at some point?

感謝您提出我的問題，並祝賀您取得了良好的結果。第一個問題，關於定價環境，一些同行和家人談到了更有利的定價環境。你也看到了嗎？我只是想看看是否有辦法將改進與您在某個時候獲得 40% 毛利率的目標聯繫起來？

Yes, we're seeing an improved environment, a little less pressure out there. We still do our annual contract renegotiation in the first quarter, so there is still some ASB pressure, but as far as the relative performance, it's much lighter than it's been the last year. Our pricing has typically been down 1% to 2% per quarter, and as that lessens of course, it will help us significantly on our gross margin expansion.

是的，我們看到環境有所改善，壓力減輕。第一季我們仍然進行年度合約重新談判，所以ASB仍然有一些壓力，但就相對錶現而言，比去年輕得多。我們的定價通常每季下降 1% 到 2%，當然，隨著價格的下降，這將大大有助於我們毛利率的擴張。

Thanks. For my follow-up, you did just over $718 million or so in image sensors last year, which was down somewhat versus the prior year. I understand there is a good part of image sensors which is tied to orders and there is a bad part which is tied to phones and consumer that you have been de-emphasizing. Could you help us quantify what the proportions are, and when do you think the head winds on the bad part will be over so you can start growing the segment in line with the growth trends that it's exposed to?

謝謝。在我的後續報導中，去年你們在影像感測器領域的銷售額略高於 7.18 億美元，與前一年相比有所下降。據我所知，影像感測器的很大一部分與訂單相關，而有一個不好的部分與手機和消費者相關，而您一直不強調這一點。您能否幫助我們量化這些比例，以及您認為不良部分的逆風何時會結束，以便您可以開始根據其所面臨的成長趨勢來成長該細分市場？

Yes. Our automotive portion grew in excess of 25% last year. The declines were all coming out of the consumer and consumer-like applications. We expect most of this, if not all of this, to be behind us in the first quarter. You should see overall market results going forward.

是的。去年我們的汽車業務成長了 25% 以上。下降全部來自消費者和類消費者應用程式。我們預計其中大部分（如果不是全部）將在第一季解決。您應該會看到未來的整體市場結果。

Okay, thank you.

好的謝謝。

Chris Caso, CLSA.

克里斯卡索，里昂證券。

Thank you, good morning. The first question, I wonder if you could expand on some of your comments about the better seasonality in the Fairchild part of your business. Which specific areas were driving that better seasonality? Then also, I believe that you are still counting the Fairchild revenue on a sell-in basis. Could you give some color on the sell-in versus sell-through in that Fairchild part of the business?

謝謝你，早安。第一個問題，我想知道您是否可以詳細闡述您對飛兆半導體業務部分更好的季節性的評論。哪些特定領域推動了季節性的改善？另外，我相信您仍在以銷售為基礎計算仙童半導體的收入。能否詳細介紹一下 Fairchild 業務部分的銷售情況和銷售情況？

Okay. On the better seasonality in the fourth quarter, really saw a little more strength than normally Fairchild sees in that handset segment, and broadly based in their distribution businesses.

好的。由於第四季的季節性較好，飛兆半導體在手機領域確實看到了比正常情況更多的實力，並且廣泛分佈在其分銷業務中。

From the revenue recognition, indeed Chris, Fairchild is on a sell-in mode. We do not intend to change them to sell-through. As a matter of fact, we are the process of continuing with our improvement in the way to estimate shipping credit. At some point of time, and we'll announce it, we will convert the whole Company to sell-in.

從收入確認來看，克里斯仙童確實處於賣出模式。我們不打算將它們改為直銷。事實上，我們正​​在繼續改進評估航運信用的方式。在某個時間點，我們將宣布，我們將把整個公司轉為出售。

Right, but just following up on that, if you could maybe talk about the distributor inventory from Fairchild, and just that better seasonality, it wasn't driven by distributor inventory going up, that actually it was in demand? Is that your view?

是的，但接下來，如果你可以談談仙童的分銷商庫存，以及更好的季節性，它不是由分銷商庫存上升驅動的，實際上它是有需求的？這是你的看法嗎？

It was actually in demand. Inventory -- distributor inventories for Fairchild products were flat quarter over quarter, as compared to Q3.

它實際上是有需求的。庫存－與第三季相比，飛兆半導體產品的經銷商庫存較上季持平。

Great, okay. Just as another follow-up, your commentary indicated you were going to start in-sourcing some of the Fairchild back-end business -- I think you said by the end of the year. Could you talk about the timing of when that starts to impact your margins, and perhaps give us some details about the magnitude of that?

太好了，好吧。正如另一個後續行動一樣，您的評論表明您將開始內包仙童半導體的一些後端業務——我想您是在今年年底之前說過的。您能否談談這開始影響您的利潤的時間，並可能給我們一些有關影響程度的細節？

Yes, it will primarily be in 2018, starting with the first quarter.

是的，主要是在 2018 年，從第一季開始。

All right, thank you.

好吧。謝謝。

Craig Ellis, B. Riley.

克雷格·艾利斯，B.萊利。

Thanks for taking the question, and congratulations on the strong results, guys. Keith, I wanted to start following up on some of your prepared comments. With regards to what you're hearing from customers, you said that some of them are talking about increased demand. Can you be more specific in terms of end market areas and geographies where the team is seeing that up-tick?

感謝你們提出這個問題，並祝賀你們取得了優異的成績。基思，我想開始跟進您準備好的一些評論。關於您從客戶那裡聽到的消息，您說他們中的一些人正在談論需求的增加。您能否更具體地說明團隊看到這種成長的終端市場領域和地區？

Those are very broad-based comments. We're seeing that broadly. I will say that the very strong feedback coming from the industrial side of the business where the combined Company now has some pretty significant leverage -- also from the communications sector, and to a lesser extent the automotive sector.

這些都是基礎非常廣泛的評論。我們廣泛地看到了這一點。我要說的是，來自工業的強烈回饋，合併後的公司現在擁有一些相當重要的影響力——也來自通訊產業，在較小程度上也來自汽車產業。

Thanks, and then the follow-up, going through the businesses, it was clear that there's just a range of revenue opportunities for the combined Company, whether it's cross-selling in PC and wireless, potential for distribution share gained, revenue synergies down the road. Can you rank the top revenue opportunities with the combined Company as it would impact this year's growth that you see for 2017?

謝謝，然後是後續的業務，很明顯，合併後的公司有一系列的收入機會，無論是個人電腦和無線領域的交叉銷售、獲得分銷份額的潛力、收入協同效應路。您能否對合併後公司的最大收入機會進行排名，因為它將影響您預計的 2017 年今年的成長？

The distribution side certainly I think is a significant opportunity, but it crosses all market segments, so it's not limited to a specific segment. Relative to what we have seen so far on up sides, I would say the handsets and industrial would be the two leading areas.

我認為分銷方面當然是一個重要的機會，但它跨越所有細分市場，因此不限於特定細分市場。相對於我們迄今為止所看到的上升趨勢，我認為手機和工業將是兩個領先領域。

Thanks, guys.

多謝你們。

John Pitzer, Credit Suisse.

約翰‧皮策，瑞士信貸。

Yes, good morning, guys. Thanks for letting me ask the question. Keith, just a little bit more detail on the Fairchild handset strength. I'm just curious to what extent you view this as content gain? Was there any geographical pattern that you could highlight on the Fairchild strength in the calendar fourth quarter -- would be helpful?

是的，早上好，夥計們。謝謝你讓我問這個問題。 Keith，請詳細介紹 Fairchild 手機的實力。我只是好奇你在多大程度上認為這是內容增益？您是否可以在日曆第四季度強調仙童半導體實力的任何地理模式 - 會有幫助嗎？

Yes, clearly content gains on the rapid charging front, we see that globally. We also saw Fairchild picking up significantly in the China-based handsets over previous cycles, and so those two factors together are providing upsides.

是的，顯然，快速充電方面的內容有所增加，我們在全球範圍內都看到了這一點。我們也看到飛兆半導體在先前的周期中在中國手機市場的銷售量顯著上升，因此這兩個因素共同帶來了好處。

That's helpful. Then as my follow-up guys, just as you think about moving the core ON business from a sell-through to a sell-in model this year, can you help us understand how that might impact the quarterly revenue patterns? What's the strategy to mitigate the impact of that change in revenue rec, and when in this calendar year do we expect it to hit the most?

這很有幫助。那麼，作為我的後續人員，正如您考慮今年將核心 ON 業務從直銷模式轉變為銷售模式一樣，您能否幫助我們了解這可能會如何影響季度收入模式？減輕收入記錄變化影響的策略是什麼？我們預計在本日曆年什麼時候它會受到最大影響？

In general terms, I don't expect any significant change. Our change in distribution inventory which drove the sell-through adjustment has been fairly moderate of the last several quarters. It normally -- if you look at it historically, it has been a very modest amount. As far as timing, we are still in discussions with our auditors. As soon as we are ready, we will announce it. I expect it to be somewhere in the first half of this year, but that's dependent on us completing certain tasks.

總的來說，我預計不會有任何重大變化。過去幾個季度，我們推動銷售調整的分銷庫存變化相當溫和。通常來說，如果你從歷史的角度來看，這個數字是非常適中的。就時間安排而言，我們仍在與審計師進行討論。一旦我們準備好，我們就會宣布。我預計會在今年上半年的某個時間，但這取決於我們完成某些任務。

Thanks, guys.

多謝你們。

Tristan Gerra, Baird.

特里斯坦·杰拉，貝爾德。

Hi, good morning. Given the very low inventories in the channel, what's the potential for the channel to re-build inventories ahead of the second half? If so, what's the outlook for a tightening supply chain, which could be conducive of some mix shift or even pruning, which will also help your margin profile?

早安.鑑於通路庫存非常低，通路在下半年前重建庫存的潛力有多大？如果是這樣，供應鏈收緊的前景如何？這可能有利於某種組合轉變甚至修剪，這也將有助於您的利潤狀況？

We normally do see modest up-tick in distribution inventories in the first quarter as they prepare for second-quarter and third-quarter ramps. It is -- it's not substantial, but it could be up 5% or so in a normal environment. Their motivation -- very much they're driven now by the return on working capital, so I think there's a lot of discipline out there to prevent over-stocking. Right now, I think you'll see the economic trends may be plus a little bit in the first half, but nothing more significant than that.

我們通常會看到第一季分銷庫存略有上升，因為他們為第二季和第三季的成長做準備。確實不是很大，但在正常環境下可能會上漲 5% 左右。他們的動機很大程度上是由營運資本回報率驅動的，所以我認為有很多紀律可以防止庫存過多。現在，我認為您會看到上半年的經濟趨勢可能會有所改善，但沒有什麼比這更重要的了。

Okay, and what type of utilization rate you expect in Q1 that's embedded in your guidance?

好的，您預計第一季的使用率會是什麼樣的？

Low 80%s.

低80%。

Great, thank you.

太好了謝謝。

Ross Seymore, Deutsche Bank.

羅斯·西莫爾，德意志銀行。

Hi, guys. I just wanted to follow-up on that last question. I was little surprised your utilization was going down in the March quarter, just given the preparation for normal strong seasonality in the second and third quarter. Can you just describe why that decision is being made?

嗨，大家好。我只是想跟進最後一個問題。考慮到為第二和第三季正常的強季節性做好準備，我對三月季度的利用率下降並不感到驚訝。您能簡單描述一下為什麼做出這個決定嗎？

Yes, it's not significantly down, but it is down. We have -- we take the opportunity, frankly, to do maintenance on the facilities during Chinese New Year that takes a little bit of the capacity out while we're doing that.

是的，雖然沒有大幅下降，但確實是下降了。坦白說，我們利用這個機會在農曆新年期間對設施進行維護，這在我們這樣做的同時佔用了一些容量。

Then as my follow-up on the OpEx side of things, Bernard, last quarter on the call, we talked about OpEx to revenue. There was some debate about 22% or slightly less than that, 21%, et cetera. Is that a framework that you could update us on?

然後，作為我在營運支出方面的後續行動，伯納德，在上個季度的電話會議上，我們討論了營運支出與收入的關係。關於 22% 或略低於 21% 等存在一些爭議。您可以向我們介紹這個框架嗎？

We'll basically be updating you on that at the Analyst Day. Right now, what I can say is that in the first quarter our guidance is $278 million, and it's down from the fourth quarter.

我們基本上會在分析師日向您通報最新情況。現在，我可以說的是，第一季我們的指引為 2.78 億美元，比第四季有所下降。

Great, thank you.

太好了謝謝。

Steve Smigie, Raymond James.

史蒂夫·斯米吉，雷蒙德·詹姆斯。

Great. Thanks a lot, guys, and congrats on a nice start to Fairchild and the good raise here. Just wanted to ask about auto a little bit further. Is it fair to say that's probably going to be your strongest growth driver this year, and if so, without pinning you down, can you give some sense of what the range of growth might be for 2017?

偉大的。非常感謝，夥計們，祝賀 Fairchild 有了一個良好的開端，並獲得了不錯的加薪。只是想進一步詢問有關汽車的問題。可以公平地說，這可能會成為您今年最強勁的成長動力嗎？如果是這樣，在不限制您的情況下，您能否介紹一下 2017 年的成長範圍？

Yes, it should be our strongest area, and we're looking for something in the high-single-digit growth rate for the year.

是的，這應該是我們最強的領域，我們正在尋找今年高個位數成長率的東西。

Okay, great. As my follow-up on that, typically on auto, I think you get to see platforms well in advance. Is it fair to say that given the design wins you're seeing, we would expect 2018 to be a pretty solid year there, as well? And just a housekeeping item -- for the tax rate, does that 10% extend into calendar 2018, as well? Thanks.

好的，太好了。作為我的後續行動，通常是在汽車方面，我認為您可以提前看到平台。可以公平地說，考慮到您所看到的設計勝利，我們預計 2018 年也將是相當穩定的一年嗎？就稅率而言，這 10% 是否也延續到 2018 年？謝謝。

On the auto side, yes, we do get to see those in advance, and we continue to be excited by our building backlog there on the design win inventory, so things should continue strengthening into 2018. On the tax rate question, we have said in the past and continue saying that our tax rate will inch itself to about 10% to 12%, so in 2018 it will be probably a little bit higher than 10%.

在汽車方面，是的，我們確實可以提前看到這些情況，而且我們繼續對設計獲勝庫存中積壓的訂單感到興奮，因此到 2018 年情況應該會繼續加強。關於稅率問題，我們已經說過過去並繼續說我們的稅率將逐漸升至10％至12％左右，因此2018年可能會略高於10％。

Okay, great. Thanks.

好的，太好了。謝謝。

Rajvindra Gill, Needham & Company.

Rajvindra Gill，李約瑟公司。

Yes, thanks for taking my questions. Congrats, as well. If I look at the core Fairchild -- the core ON business in 2016, it's a little bit -- probably slightly down, most likely flat for 2016. As we -- but in exiting Q4, it was up about 7% year-over-year, so the growth rate is reversing recourse and accelerating. Can we talk a little bit about what you are thinking about in terms of the long-term growth rate for the core ON Semiconductor business, or is that no longer relevant now that we have cross-selling opportunities with Fairchild?

是的，感謝您回答我的問題。也恭喜你。如果我看看飛兆半導體的核心業務——2016 年的核心ON 業務，它會有點——可能略有下降，2016 年很可能持平。正如我們——但在第四季度結束時，它同比增長了約7%年，因此成長率正在逆轉並加速。我們能否談談您對安森美半導體核心業務的長期成長率的看法，或者現在我們與仙童有交叉銷售機會，這一點不再相關？

No, it's relevant. We were roughly flat last year. Basically, what we did was we're withdrawing from the consumer portions of the image sensor business, and that was offset by growth in the rest of core ON. That led to the flattening for the totals. What we actually see is continued share gain in the markets that we're pursuing. I would expect that shift as we mentioned in the image sensor piece to be over this year, so you should see us growing at faster than the overall semiconductor market rates.

不，這是相關的。去年我們的情況大致持平。基本上，我們所做的就是從影像感測器業務的消費者部分撤出，而這被核心 ON 其餘部分的成長所抵消。這導致總數趨於平緩。我們實際上看到的是我們所追求的市場份額持續成長。我預計我們在影像感測器部分中提到的這種轉變將在今年結束，因此您應該看到我們的成長速度快於整體半導體市場的成長速度。

Great. We've seen strong growth in 2016 out of automotive, communications, computing -- numbers that are in the 15%, 16% range for the business. If we look at automotive specifically, can you talk a little bit about ADAS and the number of camera-based image sensors that are going to be proliferated in these vehicles over the next one to two years, or three years, and how your competitive position is in that market? It seems like the proliferation of ADAS systems are going to generate a significant amount of cameras.

偉大的。 2016 年，我們看到汽車、通訊、運算領域的強勁成長——該業務的數字在 15% 至 16% 範圍內。如果我們具體關注汽車產業，您能否談談 ADAS 以及未來一到兩年或三年內將在這些車輛中激增的基於攝影機的影像感測器的數量，以及您的競爭地位如何在那個市場？ ADAS 系統的普及似乎將產生大量的攝影機。

Yes, they are. We believe we've been winning about 70% of the ADAS cameras for the new platforms, based on the design win feedback we get from our customers. We believe that that portion of the market again will be growing greater than 25% a year, so we're expecting extremely strong growth from cameras. The exact number of cameras per car is going to vary by model line and location around the world, but at 25% increase per year is a great base baseline to use.

是的，他們是。根據我們從客戶那裡獲得的設計獲勝回饋，我們相信我們已經贏得了新平台約 70% 的 ADAS 攝影機。我們相信，這部分市場的年增長率將再次超過 25%，因此我們預計相機將出現極其強勁的成長。每輛車配備的攝影機的確切數量將根據車型系列和世界各地的位置而有所不同，但每年 25% 的增長是一個很好的基準。

Bernard, last question, and then I'll step back in the queue. Before you had mentioned the free cash flow combined basis is expected to be about $500 million to $600 million in 2017, $700 million in 2018, and $800 million and 2019. It just seems based on the preliminary numbers in Q1, that actually the cash flow could be for this year, could be higher than that, higher than the $500 million to $700 million, or maybe on th upper end of the range. Can you talk a little bit about that, the cash flow?

伯納德，最後一個問題，然後我將退到隊列。在您之前提到，自由現金流綜合基礎預計 2017 年約為 5 億至 6 億美元，2018 年為 7 億美元，2019 年為 8 億美元。根據第一季的初步數據，實際上現金流似乎今年的金額可能會更高，可能會高於5 億至7 億美元，或者可能是該範圍的上限。能談談現金流嗎？

We are pretty excited about the free cash flow opportunities. We think again we can be in the $500 million to $600 million, and obviously the higher the better. But we are very confident with our prospects and execution on Fairchild that we should be able to get definitely heavily within that range.

我們對自由現金流機會感到非常興奮。我們再次認為我們可以在 5 億至 6 億美元之間，而且顯然越高越好。但我們對 Fairchild 的前景和執行力非常有信心，我們絕對能夠在這個範圍內獲得巨大收益。

Okay, great. Thank you.

好的，太好了。謝謝。

Mark Delaney, Goldman Sachs.

馬克·德萊尼，高盛。

Yes, good morning, thanks very much for the questions. First question is a follow-up on the Fairchild synergies. You talked about making very good progress with those. Is it just that you're going to be able to realize some of the cost synergies earlier than you previously anticipated, or should we think about up side to the total dollar amount of the Fairchild cost synergies?

是的，早上好，非常感謝您的提問。第一個問題是仙童半導體協同效應的後續問題。您談到在這些方面取得了非常好的進展。只是因為您將能夠比您之前預期的更早實現一些成本協同效應，還是我們應該考慮飛兆半導體成本協同效應總金額的上升趨勢？

Well, we clearly are getting things earlier. We uncover more opportunities as we go along, and I would expect at the right time we'll be increasing that number.

嗯，我們顯然正在更早地得到事情。隨著我們的發展，我們會發現更多的機會，我預計在適當的時候我們會增加這個數字。

That's helpful. Then for a follow-up question on the communications market, you talked about especially in the calendar fourth quarter strength in China. You say it's above seasonal for some of the Fairchild parts. Do you have any visibility about how well the shipments that ON was making in the fourth quarter into the handset market, especially China, have been able to sell through, especially now that we've gone through another year?

這很有幫助。然後，關於通訊市場的後續問題，您特別提到了中國第四季的強勁勢頭。您說 Fairchild 的某些零件的情況超出了季節性。您是否了解 ON 在第四季度向手機市場（尤其是中國）的出貨量，尤其是現在我們已經度過了另一年的銷售情況？

Yes, we have seen no inventory back-up in that area. A part of the perhaps a little better Q1 seasonality than normal is because there wasn't the normal clog-up in the China market.

是的，我們在該地區沒有看到庫存備份。第一季的季節性可能比正常情況好一點，部分原因是中國市場沒有正常的阻塞。

That's helpful. Thank you very much.

這很有幫助。非常感謝。

Thank you. Shawn Harrison, Longbow Research.

謝謝。肖恩·哈里森，長弓研究中心。

Hi, good morning, and congrats on the result. Just wanted to follow up on the synergies question. I think last time you said you were beyond $75 million of OpEx synergies realized, and I think around $30 million of COG synergies, but where are we at entering 2017 on that number?

你好，早安，恭喜你的結果。只是想跟進綜效問題。我想上次您說您實現了超過 7500 萬美元的營運支出協同效應，並且我認為實現了大約 3000 萬美元的 COG 協同效應，但進入 2017 年時我們的這個數字處於什麼水平呢？

We're still very confident about achieving the $160 million that we have been reiterating in our discussions. As Keith said, we are a little bit ahead of pace, but definitely confident about the $160 million.

我們仍然對實現我們在討論中重申的 1.6 億美元目標充滿信心。正如 Keith 所說，我們有點超前，但對 1.6 億美元絕對有信心。

Okay, and then a brief I follow-up, two-fold. One, just the CapEx expectation for the year; and second, we have been hearing a lot more about wireless charging maybe becoming a bigger thing in the market in 2017? If you could talk about just what you're seeing in wireless charging, please?

好的，然後我會進行簡短的跟進，分成兩部分。一，只是今年的資本支出預期；其次，我們聽到了很多關於無線充電可能會在 2017 年成為市場上更大的事情的消息？能談談您對無線充電的看法嗎？

On the CapEx expectation, our 6% to 7% of revenue model continues being the one we're using.

就資本支出預期而言，我們繼續採用 6% 至 7% 的收入模式。

On the wireless charging side, certainly we are seeing more interest on the high-end phones, and some rumors of maybe some major platforms. I'm afraid we're going to have to wait for those announcements to say more.

在無線充電方面，我們當然看到人們對高階手機越來越感興趣，並且有一些關於可能是一些主要平台的傳言。恐怕我們將不得不等待這些公告才能透露更多。

Chris Rolland, Susquehanna.

克里斯羅蘭，薩斯奎哈納。

Hi, guys. Congrats on the quarter. You guys mentioned Fairchild's server power. You guys said that you suspected it could be a growth area for you guys. If you could maybe expand there, and also talk about the upcoming pearly release, do you get any additional content gains there? Thanks.

嗨，大家好。恭喜本季。你們提到了 Fairchild 的伺服器能力。你們說你們懷疑這可能是你們的成長領域。如果你可以在那裡擴展，並談論即將到來的珍珠版本，你會在那裡獲得任何額外的內容收益嗎？謝謝。

Yes. We think we've got an opportunity for about $25 to $30 per server. For us, it will be all share gain, since there was no prior participation. We do see design wins there. I think it's too early to call market share overall, but we should see some nice growth this year in that server area.

是的。我們認為每台伺服器的價格約為 25 至 30 美元。對我們來說，這將是所有份額收益，因為之前沒有參與。我們確實看到了設計的勝利。我認為現在判斷整體市場份額還為時過早，但今年我們應該會看到該伺服器領域出現一些不錯的成長。

Okay, great. Your comments about early evidence of revenue synergies, I don't know if you guys can quantify that. If you can't, that's fine. But perhaps you can talk anecdotally or give some examples about how you guys are generating these top-line synergies. Are they combinations of product sets, or sales teams, or new distribution channels that maybe Fairchild had that you guys didn't? Are they direct relationships? How are you -- how do you think you're going to be able to generate those top-line synergies?

好的，太好了。您對收入協同效應早期證據的評論，我不知道你們是否可以量化這一點。如果你不能，那也沒關係。但也許您可以談論軼事或舉一些例子來說明您如何產生這些頂級協同效應。它們是產品組合、銷售團隊還是新通路的組合，這些可能是 Fairchild 擁有而你們卻沒有的？他們是直接關係嗎？您怎麼樣—您認為您將如何產生這些頂級協同效應？

Well, they're coming across very broadly. In many cases you do have sales teams that had exposure to different portions of our customer's business, and that's having a positive impact. In some cases, just our ability to deal with the distribution market was stronger, helping the Fairchild side out. In many of our industrial customers, they were perhaps more of a Fairchild long-term customer, now getting exposure to the offerings from ON has created opportunities. It's very broad-based, and as we said, very encouraging after the first quarter.

嗯，他們的接觸面非常廣泛。在許多情況下，您的銷售團隊確實接觸過客戶業務的不同部分，這會產生正面的影響。在某些情況下，只是我們應對分銷市場的能力更強，從而幫助仙童集團擺脫困境。在我們的許多工業客戶中，他們可能更多的是 Fairchild 的長期客戶，現在接觸 ON 的產品創造了機會。它的基礎非常廣泛，正如我們所說，第一季之後非常令人鼓舞。

Great. Well, congrats on the progress. Nice quarter.

偉大的。嗯，恭喜你取得了進展。不錯的季度。

Thank you.

謝謝。

Kevin Cassidy, Stifel.

凱文·卡西迪，斯蒂菲爾。

Thanks for taking my question. On image sensors, you had said that it was up 25% for the automotive. Can you say what percentage of revenue automotive represents?

感謝您提出我的問題。在影像感測器方面，您曾說過汽車的影像感測器成長了 25%。您能說出汽車佔收入的百分比嗎？

Approximately 20%.

大約20%。

Okay. Do you have exposure to the drone market?

好的。您是否涉足無人機市場？

Yes, we do. It's still very small.

是的，我們願意。它仍然很小。

Okay. Then on the dollar content in servers, how does that compare to dollar content in PCs?

好的。那麼伺服器中的美元內容與個人電腦中的美元內容相比如何？

It's higher so not quite double, but around double.

它更高，所以不是兩倍，但大約是兩倍。

Okay, great. Thank you.

好的，太好了。謝謝。

Harsh Kumar, Stephens, Inc.

哈什·庫馬爾，史蒂芬斯公司

Hi, guys. Congratulations on a great quarter and guidance. I was wondering, you mentioned that you're tracking ahead of synergies so far. I was wondering if you could give us an update on perhaps what is -- what are some of the big blocks that need to be accomplished in 2017 with Fairchild?

嗨，大家好。恭喜您取得了出色的季度業績和指導。我想知道，您提到到目前為止您正在追蹤協同效應。我想知道您能否向我們介紹最新情況：2017 年 Fairchild 需要完成哪些重大任務？

The bigger one in 2017, per se, is the completion of the integration of our ERP systems towards the end of the year. There is still some rationalization of some of the R&D expenses that we're going to do. Those are the major two. As we talked about in the prepared remarks, we should also start seeing some of the benefits on the COG side for in-sourcing towards the end of the year, but it's mostly a 2018 phenomenon.

2017 年更大的事情本身就是在年底完成 ERP 系統的整合。我們要做的一些研發費用仍然有一些合理化的地方。這是主要的兩個。正如我們在準備好的發言中談到的那樣，我們也應該在今年年底開始看到 COG 方面內包的一些好處，但這主要是 2018 年的現象。

Got it, thank you. Then some of the other companies that have reported, Keith, have talked about worse than normal seasonality because of some handset delays. A couple handsets in China -- one company has said, and then one in Korea. I was wondering, you just mentioned that your comm business will be down sequentially, which is expected; but I was wondering if you are seeing worse than normal seasonality, as well?

收到了。謝謝。然後，基思（Keith）等其他一些做出報告的公司表示，由於一些手機延遲，季節性比正常情況更糟。一家公司表示，有幾款手機在中國，還有一款在韓國。我想知道，您剛才提到您的通訊業務將依次下降，這是預料之中的；但我想知道您是否也看到了比正常季節性更糟糕的情況？

No, we're not. We're definitely not seeing worse than normal. I think it has the potential to be slightly better than normal.

沒有，我們沒有。我們絕對不會看到比平常更糟糕的情況。我認為它有可能比正常情況稍好。

Great, thanks.

萬分感謝。

Thank you. Harlan Sur, JPMorgan.

謝謝。哈蘭‧蘇爾，摩根大通。

Good morning, and congratulations on the solid results. With the two weeks now post Chinese New Year's -- and I know you guys just talked about trends in the handset segment, I wanted to get your views on the sell-through trends coming out of that across the industrial and auto end markets in China?

早安，祝賀取得的紮實成果。農曆新年過後還有兩週，我知道你們剛剛談論了手機領域的趨勢，我想了解一下你們對中國工業和汽車終端市場的銷售趨勢的看法？

Okay. Actually, our post-Chinese New Year activity picked right back up to where it was pre-Chinese New Year, so very solid, and encouraging for not only this quarter, but the build-up for Q2.

好的。事實上，我們在農曆新年後的活動很快就恢復到了農曆新年前的水平，非常穩定，不僅對本季度如此，而且對第二季度的準備也令人鼓舞。

Thanks for the insights there. One of your competitors, they're a top five supplier of car MOSFET, I think they talked recently about having supply constraints within their business as they transition their manufacturing operations, both in the December quarter and here in the March quarter. I'm wondering if the ON team has been able to pick up some design win share as a result of some of these perturbations?

感謝您的見解。你們的競爭對手之一，他們是汽車 MOSFET 的前五名供應商，我認為他們最近談到了在 12 月季度和 3 月季度轉型製造業務時其業務中存在供應限制。我想知道 ON 團隊是否能夠因為這些擾動而獲得一些設計勝利份額？

Yes, normally those perturbations are really tactical. They're not so much design win, but where you're sharing market share, you'll pick up a little bit more if one of your competitors has some hiccups. I would put it more in that category rather than a real design change.

是的，通常這些幹擾確實是戰術性的。它們不是設計上的勝利，而是在分享市場佔有率的情況下，如果你的競爭對手出現一些問題，你會獲得更多的收益。我更願意將其歸入該類別，而不是真正的設計變更。

Okay, great. Thank you.

好的，太好了。謝謝。

Craig Hettenbach, Morgan Stanley.

克雷格‧赫滕巴赫，摩根士丹利。

Yes, thank you. Question on gross margin. Can you talk about the performance of Fairchild's gross margin in the December quarter, and as you go forward, the mix between utilization benefits, as well as end market mix, what you see is the biggest driver for gross margins?

是的，謝謝。關於毛利率的問題。您能否談談飛兆半導體在 12 月季度的毛利率表現？隨著您的展望，利用率效益之間的組合以及終端市場組合，您認為毛利率的最大驅動因素是什麼？

Sure. We don't disclose separate gross margin for Fairchild, as we have now really totally integrated them within our numbers. But in general terms, when we look at it, it should be at or better than what we were expecting.

當然。我們不會單獨揭露飛兆半導體的毛利率，因為我們現在已經將它們完全整合到我們的數據中。但總的來說，當我們審視它時，它應該達到或優於我們的預期。

Okay. Then in terms of drivers from here, can you talk about the influence of --

好的。那麼就這裡的司機而言，您能談談以下因素的影響嗎——

The drivers are the same that we have mentioned. It's the 50% follow-through on incremental revenue throughout the year. It's the mix changes as we continue shifting our production and our revenues towards higher gross margin areas like automotive, industrial, and comm. It is also the benefit of the synergies that we are talking about the size and scale.

驅動程式與我們提到的相同。這是全年增量收入的 50% 的後續行動。隨著我們繼續將生產和收入轉向汽車、工業和通訊等毛利率更高的領域，結構發生了變化。我們談論的規模和規模也是協同效應的好處。

Got it. As my follow-up, Keith, you mentioned industrial a couple times in terms of strength, can you talk about just seasonality in terms of the first half of the year tends to be strong versus just any inflection, just seeing from a customer demand perspective?

知道了。作為我的跟進者，基思，您多次提到工業的強度，您能否談談上半年的季節性往往比任何拐點都強勁，從客戶需求的角度來看？

Normally we do see a pick-up Q2, and a little bit in Q1. Usually first half is a little stronger than second half for industrial. I do think that market itself is growing moderately from a GDP perspective, but we should see some customer gains per the synergies we talked about on the revenue line.

通常情況下，我們確實會看到第二季度有所回升，第一季略有回升。通常工業上半年比下半年稍強。我確實認為，從 GDP 的角度來看，市場本身正在適度增長，但我們應該看到我們在收入方面討論的協同效應帶來了一些客戶收益。

Okay, thank you.

好的謝謝。

Ross Seymore, Deutsche Bank.

羅斯·西莫爾，德意志銀行。

Hi, guys. Thanks for letting into the queue again. Just wanted to get a little more detail on the de-leveraging goal? I know you paid down that $445 million convert post the end of the fourth quarter; but can you just talk a little bit about the progression going forward, the goals you're shooting for, and what the blended interest rate is going to be?

嗨，大家好。感謝您再次加入隊列。只是想了解更多有關去槓桿目標的細節嗎？我知道您在第四季末支付了 4.45 億美元的轉換費用；但您能否簡單談談未來的進展、您的目標以及混合利率是多少？

Sure, Ross, thank you. Our plan, our stated plan is to de-lever to a target of about two times net leverage, which pretty much should take us the brunt of the next couple of years, and we'll be aggressively pursuing it with the nice free cash flow that we should be generating every quarter.

當然，羅斯，謝謝你。我們的計劃，我們聲明的計劃是去槓桿化，達到大約兩倍淨槓桿率的目標，這幾乎應該是我們未來幾年的首當其衝的目標，我們將利用良好的自由現金流積極追求這一目標我們每個季度都應該發電。

And the blended interest rate that you guys are going to have now going forward?

你們現在將採用混合利率嗎？

The blended interest rate is somewhere in that our major tranche is the Terms Loan B, which is a LIBOR plus 3.25%, so it's about 4%. All the others are at about or lower than that. In general terms, close to 4%.

混合利率位於我們的主要部分是期限貸款 B 中，即倫敦銀行同業拆借利率 (LIBOR) 加 3.25%，所以約為 4%。所有其他的都在大約或低於這個水平。整體而言，接近4%。

As my last follow-up, because of the comps being a little bit difficult looking backwards, that two times net leverage that you're talking about a couple years out, where does that stand now in your definition of the EBITDA from the prior year?

作為我的最後一個跟進，由於比較有點難以回顧，你所說的幾年後淨槓桿率的兩倍，現在在你對上一年 EBITDA 的定義中處於什麼位置？

If you do it with the pro forma for Fairchild on a full-year basis and the synergies, you're looking at somewhere under three times on the net leverage.

如果你用飛兆半導體全年的預估數據和協同效應來計算，你會發現淨槓桿率低於三倍。

Perfect, thanks, guys.

完美，謝謝，夥計們。

Thank you. There are no further questions in the queue, so at this time I would now like to hand the call back over to Parag Agarwal, Vice President of Corporate Development and Investor Relations, for closing comments or remarks. Sir?

謝謝。隊列中沒有其他問題，因此現在我想將電話轉交給企業發展和投資者關係副總裁帕拉格·阿加瓦爾 (Parag Agarwal)，以供其結束評論或致辭。先生？

Thank you for joining the call today. We look forward to seeing you at our Analyst Day on March 10. Thank you, bye-bye.

感謝您今天加入通話。我們期待在 3 月 10 日的分析師日見到您。謝謝，再見。

Ladies and gentlemen, thank you for your participating on today's conference. This does conclude the program, and you may all disconnect. Everybody have a wonderful day.

女士們、先生們，感謝你們參加今天的會議。這確實結束了程序，你們都可以斷開連接。每個人都度過了美好的一天。