安森美 (ON) 2017 Q3 法說會逐字稿

完整原文

使用警語:中文譯文來源為 Google 翻譯,僅供參考,實際內容請以英文原文為主

  • Operator

    Operator

  • Good day, ladies and gentlemen, and welcome to the ON Semiconductor Third Quarter 2017 Earnings Conference Call.

    女士們,先生們,美好的一天,歡迎參加安森美半導體 2017 年第三季度收益電話會議。

  • (Operator Instructions) I would now like to turn the conference over to Parag Agarwal, Vice President of Corporate Development and Investor Relations.

    (操作員說明)我現在想將會議轉交給公司發展和投資者關係副總裁 Parag Agarwal。

  • You may begin.

    你可以開始了。

  • Parag Agarwal - VP of IR

    Parag Agarwal - VP of IR

  • Thank you, Sonia.

    謝謝你,索尼婭。

  • Good morning, and thank you for joining ON Semiconductor Corporation's Third Quarter 2017 Quarterly Results Conference Call.

    早上好,感謝您參加安森美半導體公司 2017 年第三季度季度業績電話會議。

  • I am joined today by Keith Jackson, our President and CEO; and Bernard Gutmann, our CFO.

    今天,我們的總裁兼首席執行官 Keith Jackson 也加入了我的行列;和我們的首席財務官 Bernard Gutmann。

  • This call is being webcast on the Investor Relations section of our website at www.onsemi.com.

    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絡直播。

  • A replay of this broadcast, along with our earnings release for the third quarter of 2017, will be available on our website approximately 1 hour following this conference call, and the recorded broadcast will be available for approximately 30 days following this conference call.

    本次廣播的重播以及我們 2017 年第三季度的收益發布將在本次電話會議後約 1 小時在我們的網站上提供,錄製的廣播將在本次電話會議後約 30 天內提供。

  • The script for today's call and any additional information related our end markets, business segments, geographies and channels are also posted on our website.

    今天電話會議的腳本以及與我們的終端市場、業務部門、地理和渠道相關的任何其他信息也發佈在我們的網站上。

  • Our earning release and this presentation includes certain non-GAAP financial measures.

    我們的收益發布和本演示文稿包括某些非公認會計準則財務指標。

  • Reconciliation of these non-GAAP financial measures to most directly comparable measures under GAAP are also in our earning release, which is posted separately on the website in the Investor Relations section.

    這些非 GAAP 財務指標與 GAAP 下最直接可比指標的對賬也在我們的收益發布中,該發佈單獨發佈在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 future financial performance of the company.

    在本次電話會議期間,我們將對公司的未來事件或未來財務業績做出預測或其他前瞻性陳述。

  • The words believe, estimate, project, anticipate, intend, may, expect, will, plan, should or similar expressions are intended to identify forward-looking statements.

    相信、估計、預測、預期、打算、可能、期望、將、計劃、應該或類似的表達方式旨在識別前瞻性陳述。

  • We wish to caution that such statements are subject to risks and uncertainties that could cause actual events or results to differ materially from projections.

    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存在重大差異。

  • Important factors which can affect our business, including factors that could cause actual results to differ from our forward-looking statements, are described in our Form 10-Ks, Form 10-Qs and other filing with the Securities and Exchange Commission.

    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,在我們向證券交易委員會提交的 10-Ks 表格、10-Qs 表格和其他文件中進行了描述。

  • Additional factors are described in our earnings release for the third quarter of 2017.

    我們在 2017 年第三季度的收益報告中描述了其他因素。

  • Our estimates may change, and the company assumes no obligation to update forward-looking statements to reflect actual results, changed assumptions or other factors, except as required by law.

    我們的估計可能會發生變化,公司不承擔更新前瞻性陳述以反映實際結果、更改的假設或其他因素的義務,除非法律要求。

  • For all synergy-related discussion on this call, we have used Fairchild's 2015 results as a base for all comparisons.

    對於本次電話會議中所有與協同效應相關的討論,我們使用了飛兆半導體 2015 年的結果作為所有比較的基礎。

  • Now let me turn it over to Bernard Gutmann, who will provide an overview of third quarter 2017 results.

    現在讓我把它交給伯納德·古特曼,他將概述 2017 年第三季度的業績。

  • Bernard?

    伯納德?

  • Bernard Gutmann - CFO, EVP and Treasurer

    Bernard Gutmann - CFO, EVP and Treasurer

  • Thank you, Parag, and thank you, everyone, for joining us today.

    謝謝你,帕拉格,謝謝大家今天加入我們。

  • Our execution momentum remains intact, and we once again delivered solid financial results which exceeded our guidance and Street consensus for all key metrics.

    我們的執行勢頭保持不變,我們再次交付了穩健的財務業績,超出了我們對所有關鍵指標的指導和華爾街共識。

  • Our consistent solid execution and robust financial results over a last many quarters demonstrate the strength of our operating model and strong market acceptance of our broad portfolio for automotive, industrial and communications end markets.

    在過去的多個季度中,我們始終如一的穩健執行和穩健的財務業績證明了我們運營模式的實力以及我們在汽車、工業和通信終端市場的廣泛產品組合的強大市場接受度。

  • We once again generated strong free cash flow and demonstrated solid operating leverage.

    我們再次產生了強勁的自由現金流,並展示了穩健的經營槓桿。

  • I am very pleased to announce that at the end of the third quarter, we were able to achieve our target net leverage ratio of 2x, significantly ahead of schedule.

    我很高興地宣布,在第三季度末,我們能夠實現 2 倍的淨槓桿率目標,大大提前。

  • We calculate net leverage ratio by divided -- dividing our net debt by -- at principal value by adjusted EBITDA, excluding stock-based compensation for the last 12 months.

    我們通過除以本金價值除以調整後的 EBITDA(不包括過去 12 個月的股票補償)來計算淨槓桿率。

  • This aggressive deleveraging within approximately 1 year of close of the Fairchild acquisition is a testament to our strong strategic rationale for the acquisition and to our solid execution on the integration front.

    在仙童收購完成後的大約 1 年內,這種積極的去槓桿化證明了我們強大的收購戰略理由以及我們在整合方面的穩健執行。

  • We have now reached the point where we consider -- where we can consider reinitiating our capital return program.

    我們現在已經到了我們考慮的地步——我們可以考慮重新啟動我們的資本回報計劃。

  • Our business remains strong and indication from customers and macroeconomic data point to continuing strength in demand across most end market and geographies.

    我們的業務依然強勁,來自客戶和宏觀經濟數據的跡象表明,大多數終端市場和地區的需求持續強勁。

  • Our past investments in automotive, industrial and communications end markets are yielding strong results, and we are very well positioned to benefit from sustainable secular driver in the fastest-growing segment in the semiconductor market.

    我們過去在汽車、工業和通信終端市場的投資正在產生強勁的成果,我們處於有利地位,可以從半導體市場增長最快的領域的可持續長期驅動力中受益。

  • At the same time, our highly diversified customer base with no end customer contributing more than 5% of our revenue insulates us from volatility that occurs from time to time in various end markets and geographies.

    同時,我們高度多元化的客戶群,沒有最終客戶對我們收入的貢獻超過 5%,這使我們免受不同終端市場和地區不時發生的波動的影響。

  • Our free cash flow generation remains strong, and we once again delivered robust free cash flow performance during the third quarter.

    我們的自由現金流產生仍然強勁,我們在第三季度再次實現了強勁的自由現金流表現。

  • During the first 9 months of the year, we generated free cash flow of $658 million.

    今年前 9 個月,我們產生了 6.58 億美元的自由現金流。

  • For 2017, we now expect free cash flow in the range of approximately $700 million, higher than our earlier expectation of $600 million to $650 million.

    對於 2017 年,我們現在預計自由現金流約為 7 億美元,高於我們之前預期的 6 億至 6.5 億美元。

  • As a comparison, we generated free cash flow of approximately $371 million in 2016.

    作為比較,我們在 2016 年產生了約 3.71 億美元的自由現金流。

  • Now let me provide you additional details on our third quarter 2017 results.

    現在讓我為您提供有關我們 2017 年第三季度業績的更多詳細信息。

  • Total revenue for the third quarter of 2017 was $1.391 billion, an increase of 46% year-over-year and an increase of 4% as compared to revenue in the second quarter.

    2017年第三季度總收入為13.91億美元,同比增長46%,與第二季度相比增長4%。

  • GAAP net income for the third quarter was $0.25 per diluted share.

    第三季度的GAAP淨收入為每股攤薄收益0.25美元。

  • GAAP income before income tax for the third quarter was $168 million as compared to $143 million in the second quarter.

    GAAP 第三季度所得稅前收入為 1.68 億美元,而第二季度為 1.43 億美元。

  • Non-GAAP income before income tax for the third quarter was $203 million.

    第三季度所得稅前非公認會計原則的收入為 2.03 億美元。

  • Net cash paid for taxes in the third quarter was $13.4 million, and diluted shares outstanding were 427.5 million.

    第三季度支付的稅款淨現金為 1340 萬美元,稀釋後流通股為 4.275 億股。

  • Non-GAAP income before income tax for the second quarter was $171.1 million.

    第二季度非美國通用會計準則所得稅前收入為 1.711 億美元。

  • Net cash paid for taxes in the second quarter was $17.1 million, and diluted shares outstanding were 425.9 million.

    第二季度繳納的稅款淨現金為 1710 萬美元,攤薄後流通股為 4.259 億股。

  • GAAP gross margin for the third quarter was 37.7% as compared to 36.8% in the second quarter.

    第三季度的GAAP毛利率為37.7%,而第二季度為36.8%。

  • Non-GAAP gross margin for the third quarter was 37.9%, an impressive increase of approximately 100 basis points over the 36.9% in the second quarter.

    第三季度非美國通用會計準則毛利率為 37.9%,比第二季度的 36.9% 大幅增長約 100 個基點。

  • This strong gross margin performance was driven by solid operational execution and revenue performance.

    這種強勁的毛利率表現是由穩健的運營執行和收入表現推動的。

  • Improving product mix also contributed to higher gross margin.

    改善產品組合也有助於提高毛利率。

  • With tailwinds from additional manufacturing synergies from Fairchild, mix improvement and portfolio optimization, we remain on track to achieve our target non-GAAP gross margin of 40% by 2020.

    借助飛兆半導體的額外製造協同效應、組合改進和產品組合優化,我們仍有望在 2020 年之前實現 40% 的非美國通用會計準則毛利率目標。

  • GAAP operating margin for the third quarter of 2017 was 12.7% as compared to 11.5% in the prior quarter.

    2017 年第三季度的 GAAP 營業利潤率為 12.7%,而上一季度為 11.5%。

  • Our non-GAAP operating margin in the -- for the third quarter was 16.6%, an increase of approximately 190 basis points over the 14.7% in the second quarter.

    我們第三季度的非公認會計原則營業利潤率為 16.6%,比第二季度的 14.7% 增加了約 190 個基點。

  • On our revenue increase of 4%, our non-GAAP operating margin increased by 17%.

    在我們的收入增長 4% 的情況下,我們的非公認會計原則營業利潤率增長了 17%。

  • This strong operating income performance demonstrate the operating leverage and strength of our operating model.

    這種強勁的營業收入表現證明了我們經營模式的經營槓桿和實力。

  • GAAP operating expenses for the third quarter were $347 million as compared to $338 million for the second quarter of 2017.

    第三季度的 GAAP 運營費用為 3.47 億美元,而 2017 年第二季度為 3.38 億美元。

  • Non-GAAP operating expenses for the third quarter were $296 million as compared to $297 million in the second quarter.

    第三季度非美國通用會計準則運營費用為 2.96 億美元,而第二季度為 2.97 億美元。

  • We had strong free cash flow performance in the third quarter.

    我們在第三季度的自由現金流表現強勁。

  • We define free cash flow as cash flow from operations less capital expenditures.

    我們將自由現金流定義為運營現金流減去資本支出。

  • Third quarter free cash flow was $238 million, and operating cash flow for the third quarter was $328 million.

    第三季度自由現金流為 2.38 億美元,第三季度經營現金流為 3.28 億美元。

  • Third quarter free cash flow and operating cash flow included $30 million from a licensing arrangement related to our exit from the mobile image sensor business.

    第三季度的自由現金流和經營現金流包括與我們退出移動圖像傳感器業務相關的許可安排中的 3000 萬美元。

  • Capital expenditures during the third quarter were $90 million.

    第三季度的資本支出為 9000 萬美元。

  • Capital intensity based on non-GAAP revenue during the first 9 months of the year was 5.3%, significantly below our target model of 6% to 7%.

    今年前 9 個月基於非公認會計原則收入的資本密集度為 5.3%,遠低於我們 6% 至 7% 的目標模型。

  • We expect that capital expenditures in the fourth quarter will increase and capital intensity for 2017 is expected to be in the range of 6% to 7%.

    我們預計第四季度資本支出將增加,2017 年資本密集度預計在 6% 至 7% 之間。

  • As I indicated earlier, we expect free cash flow for 2017 to be approximately $700 million, higher than our previous expectation of $600 million to $650 million.

    正如我之前所說,我們預計 2017 年的自由現金流約為 7 億美元,高於我們之前預期的 6 億至 6.5 億美元。

  • We exited the third quarter of 2017 with cash and cash equivalents of $901.2 million as compared to $871.6 million in the second quarter.

    2017 年第三季度結束時,我們的現金和現金等價物為 9.012 億美元,而第二季度為 8.716 億美元。

  • We used approximately $200 million in the third quarter of 2017 for the prepayment of debt.

    我們在 2017 年第三季度使用了大約 2 億美元來預付債務。

  • At the end of the third quarter of 2017, days of inventory on hand were 109 days, up slightly by a day as compared to inventory days at the end of the second quarter.

    2017年三季度末,庫存天數109天,比二季度末庫存天數小幅增加一天。

  • Distribution inventory in days was down in the third quarter as compared to the second quarter.

    與第二季度相比,第三季度的分銷庫存天數有所下降。

  • Given the outlook for continuing strength in demand in the near to midterm, we want to maintain adequate level of inventory to service our customers.

    鑑於近期至中期需求持續強勁的前景,我們希望保持充足的庫存水平為客戶提供服務。

  • For the third quarter of 2017, our lead times were up marginally quarter-over-quarter.

    2017 年第三季度,我們的交貨時間環比略有增加。

  • Our global factory utilization for the third quarter was up sequentially.

    我們第三季度的全球工廠利用率環比上升。

  • Now let me provide you an update on performance by our business units, starting with Power Solutions Group or PSG.

    現在讓我為您提供我們業務部門的最新業績,從 Power Solutions Group 或 PSG 開始。

  • Revenue for PSG was $706 million.

    PSG 的收入為 7.06 億美元。

  • Revenue for our Analog Solutions Group for the third quarter of 2017 was $492 million, and revenue for the Image Sensor Group was $193 million.

    2017 年第三季度我們的模擬解決方案部門的收入為 4.92 億美元,圖像傳感器部門的收入為 1.93 億美元。

  • Now I would like to turn the call over to Keith Jackson for additional comments on the business environment.

    現在,我想將電話轉給 Keith Jackson,以獲取有關商業環境的更多評論。

  • Keith?

    基思?

  • Keith D. Jackson - CEO, President and Director

    Keith D. Jackson - CEO, President and Director

  • Thanks, Bernard.

    謝謝,伯納德。

  • Once again, I am very pleased with our results.

    再一次,我對我們的結果感到非常滿意。

  • Our third quarter results clearly demonstrate the strength of our portfolio for automotive, industrial and communications end markets.

    我們第三季度的業績清楚地表明了我們在汽車、工業和通信終端市場的投資組合的實力。

  • Through our investments over the last many years in high-growth segments and in highly differentiated products in automotive, industrial and communication end markets, we have radically transformed the nature of our business.

    通過過去多年對汽車、工業和通信終端市場的高增長細分市場和高度差異化產品的投資,我們從根本上改變了我們的業務性質。

  • Our business today is driven by sustainable secular growth drivers in the fastest-growing semiconductor end markets as opposed to being driven by macroeconomic and industry cyclicality a few years ago.

    我們今天的業務受到增長最快的半導體終端市場的可持續長期增長驅動,而不是幾年前受到宏觀經濟和行業周期性的驅動。

  • With approximately 75% of revenue coming from automotive, industrial and communications end markets, we are overwhelmingly exposed to the fastest-growing segments of the semiconductor market.

    大約 75% 的收入來自汽車、工業和通信終端市場,我們絕大多數都接觸到半導體市場增長最快的部分。

  • Our traction in high-growth areas such as ADAS, electric vehicles, silicon carbide, machine vision, industrial power management, et cetera, continues to accelerate and we remain very optimistic about our near- and long-term prospects.

    我們在 ADAS、電動汽車、碳化矽、機器視覺、工業電源管理等高增長領域的牽引力繼續加速,我們對近期和長期前景仍然非常樂觀。

  • We believe that we are in the early stages of realizing benefits of our investments in the automotive and industrial end markets and the increased adoption of ADAS, electric vehicles, hybrid electric vehicles, machine vision, robotics, et cetera, should drive further acceleration in our revenue.

    我們相信,我們正處於實現我們在汽車和工業終端市場投資收益的早期階段,ADAS、電動汽車、混合動力電動汽車、機器視覺、機器人技術等的更多采用應該會推動我們的進一步加速收入。

  • We continue to invest in the automotive and industrial end markets as we believe that these markets will be the fastest-growing semiconductor end markets.

    我們繼續投資於汽車和工業終端市場,因為我們相信這些市場將是增長最快的半導體終端市場。

  • Along with strong revenue growth driven by secular growth drivers, our operating performance has been solid.

    除了由長期增長驅動力推動的強勁收入增長外,我們的經營業績一直穩健。

  • We've demonstrated strong operating leverage through solid gross and operating margin improvement.

    我們通過穩健的毛利率和營業利潤率提高展示了強大的經營槓桿。

  • Our operating profit growth significantly exceeded growth in our revenue, and our free cash flow generation thus far this year has significantly exceeded our free cash flow in 2016.

    我們的營業利潤增長顯著超過了我們的收入增長,今年迄今為止我們的自由現金流量大大超過了我們在 2016 年的自由現金流量。

  • We further expect expansion in our margins as we realize further benefits from synergies from Fairchild and from our gross margin improvement initiatives.

    隨著我們從飛兆半導體的協同效應和我們的毛利率改善計劃中進一步受益,我們進一步預計我們的利潤率將擴大。

  • Based on our progress thus far, we feel very confident in our ability to achieve our targeted financial model by 2020, provided there is no significant adverse change in macroeconomic conditions.

    根據我們迄今為止的進展,我們對到 2020 年實現目標財務模型的能力充滿信心,前提是宏觀經濟條件沒有顯著的不利變化。

  • We expect to grow faster than the semiconductor industry, driven by sustainable secular growth drivers in margin-rich automotive and industrial end markets.

    在利潤豐厚的汽車和工業終端市場的可持續長期增長驅動因素的推動下,我們預計增長速度將超過半導體行業。

  • This revenue growth should drive operating leverage, coupled with mix shift towards higher-margin products.

    這種收入增長應該會推動經營槓桿,再加上向更高利潤產品的組合轉變。

  • Further margin expansion should come from optimization of Fairchild's manufacturing operations.

    進一步的利潤增長應該來自於仙童製造業務的優化。

  • Divestiture of noncore and underperforming businesses should further contribute towards margin expansion.

    剝離非核心和表現不佳的業務應進一步促進利潤率擴張。

  • We continue to make good progress on our divestiture program.

    我們的資產剝離計劃繼續取得良好進展。

  • As we announced last quarter, we have monetized our mobile CMOS image sensor IP, and another announcement related to divestiture of another business should come out shortly.

    正如我們上個季度宣布的那樣,我們已經將我們的移動 CMOS 圖像傳感器 IP 貨幣化,並且與剝離另一項業務相關的另一項公告應該很快就會發布。

  • Customers are increasingly engaging with us for key enabling technologies for emerging applications.

    客戶越來越多地與我們合作,為新興應用提供關鍵支持技術。

  • We are very well positioned to benefit from secular growth drivers such as adoption of electric vehicles.

    我們非常有能力從電動汽車的採用等長期增長動力中受益。

  • We are making strong progress in our silicon carbide program and currently, we are sampling products to many global automotive customers.

    我們的碳化矽項目取得了長足的進步,目前,我們正在向許多全球汽車客戶提供產品樣品。

  • We expect to see silicon carbide related revenue from automotive customers in the second half of 2018.

    我們預計 2018 年下半年將看到來自汽車客戶的碳化矽相關收入。

  • We continue to extend our leadership in ADAS.

    我們繼續擴大我們在 ADAS 方面的領導地位。

  • And as I indicated in the last earnings call, we are engaged at a very early stage with key players in artificial intelligence for automotive, machine vision and robotics applications.

    正如我在上次財報電話會議中指出的那樣,我們在很早的階段就與汽車、機器視覺和機器人應用人工智能領域的主要參與者進行了接觸。

  • We believe that our early engagement with leaders in AI will result in significant competitive advantage for us as adoption of AI accelerates in ADAS, machine vision and robotics applications.

    我們相信,隨著人工智能在 ADAS、機器視覺和機器人應用中的應用加速,我們與人工智能領導者的早期合作將為我們帶來顯著的競爭優勢。

  • We're making strong progress in our cloud and server power management business, and our revenue for this business accelerated sharply in the third quarter.

    我們在雲和服務器電源管理業務方面取得了長足的進步,該業務的收入在第三季度急劇增長。

  • For USB Type-C, we have on the market the lowest power and most comprehensive solution comprising of power delivery, controller, re-drivers, multiplexers, switches and protection devices.

    對於 USB Type-C,我們擁有市場上功耗最低且最全面的解決方案,包括電源傳輸、控制器、轉接驅動器、多路復用器、開關和保護設備。

  • For the third quarter, our USB Type-C related products posted strong revenue performance, and we expect robust growth in our USB Type-C related revenue going forward.

    第三季度,我們的 USB Type-C 相關產品的收入表現強勁,我們預計我們的 USB Type-C 相關收入未來將強勁增長。

  • In addition to secular revenue drivers, we are benefiting from cross-selling opportunities arising out of the combined customer base of ON Semiconductor and Fairchild.

    除了長期收入驅動因素外,我們還受益於安森美半導體和飛兆半導體聯合客戶群所帶來的交叉銷售機會。

  • As I've indicated earlier, following our acquisition of Fairchild Semiconductor, customers are increasingly relying on us as a credible alternative to the market leader for a broad range of power management solutions.

    正如我之前所指出的,在我們收購飛兆半導體之後,客戶越來越依賴我們作為市場領導者的可靠替代品,以提供廣泛的電源管理解決方案。

  • We continue to make strong progress in the integration of Fairchild.

    我們在仙童整合方面繼續取得強勁進展。

  • We recently achieved a major milestone in the integration process by completing the integration of Fairchild's IT systems.

    我們最近完成了仙童 IT 系統的集成,在集成過程中實現了一個重要的里程碑。

  • We solidly remain on track to begin realizing manufacturing synergies from Fairchild toward the end of the year as we start insourcing of Fairchild's back-end operations.

    隨著我們開始對 Fairchild 的後端業務進行內包,我們將繼續穩步推進,以在年底前實現 Fairchild 的製造協同效應。

  • We expect to exit 2017 with annual synergies run rate of $180 million.

    我們預計將在 2017 年以 1.8 億美元的年度協同效應退出。

  • Our target of annual synergies run rate of $240 million by the end of 2019 remains unchanged.

    我們到 2019 年底達到 2.4 億美元的年度協同效應目標保持不變。

  • Let me now comment on the business trends in the third quarter.

    現在讓我評論一下第三季度的業務趨勢。

  • During the third quarter, demand trends and bookings were strong across most end markets and geographies.

    在第三季度,大多數終端市場和地區的需求趨勢和預訂量都很強勁。

  • Supply-demand dynamics in the third quarter were stable as compared to supply-demand dynamics in the second quarter.

    與第二季度的供需動態相比,第三季度的供需動態保持穩定。

  • There was no meaningful change in lead times or distribution inventory levels from the second quarter of 2017.

    自 2017 年第二季度以來,交貨時間或分銷庫存水平沒有顯著變化。

  • Pricing continues to be benign as compared to historic trends.

    與歷史趨勢相比,定價繼續保持良性。

  • Our customers are upbeat on demand for their products, and they expect the strength in demand to continue for the near to midterm.

    我們的客戶對其產品的需求持樂觀態度,他們預計需求的強勁勢頭將在近期至中期持續下去。

  • Now I'll provide details of the progress in our various end markets for the third quarter of 2017.

    現在,我將詳細介紹 2017 年第三季度我們各個終端市場的進展情況。

  • Revenue for the automotive market in the third quarter was $411 million and represented 30% of our revenue in the third quarter.

    第三季度汽車市場的收入為 4.11 億美元,占我們第三季度收入的 30%。

  • Third quarter automotive revenue grew by 32% year-over-year and was approximately flat quarter-over-quarter.

    第三季度汽車收入同比增長 32%,環比基本持平。

  • For the third quarter, we again saw strong demand in a seasonally weak quarter for our CMOS image sensors, power management products, mixed signal ASICs and sensor interface products.

    第三季度,我們在季節性疲軟的季度再次看到對我們的 CMOS 圖像傳感器、電源管理產品、混合信號 ASIC 和傳感器接口產品的強勁需求。

  • Our revenue grew strongly year-over-year in most geographies.

    在大多數地區,我們的收入同比強勁增長。

  • As I indicated earlier in the prepared remarks and on previous calls, we are very well positioned to benefit from the adoption of ADAS and electric vehicles.

    正如我之前在準備好的評論和之前的電話中所指出的那樣,我們完全有能力從採用 ADAS 和電動汽車中受益。

  • We expect to see our first silicon carbide related revenue from automotive customers in the second half of 2018.

    我們預計將在 2018 年下半年看到來自汽車客戶的第一筆碳化矽相關收入。

  • In the fourth quarter, we expect to see a ramp of our IGBTs for electric vehicle traction motors in China.

    在第四季度,我們預計我們用於電動汽車牽引電機的 IGBT 將在中國出現增長。

  • We're seeing ramp of our IGBTs and FETs for electric vehicle charger designs.

    我們正在看到用於電動汽車充電器設計的 IGBT 和 FET 數量激增。

  • We are working with leading ecosystem players on power management solutions for processors and other related applications in automotive.

    我們正在與領先的生態系統參與者合作,為汽車處理器和其他相關應用提供電源管理解決方案。

  • Revenue in the fourth quarter for the automotive end market is expected to be up quarter-over-quarter.

    汽車終端市場第四季度的收入預計將環比增長。

  • The industrial end market, which includes military, aerospace and medical, contributed revenue of $349 million in the third quarter.

    包括軍事、航空航天和醫療在內的工業終端市場在第三季度貢獻了 3.49 億美元的收入。

  • The industrial end market represented 25% of our revenue in the third quarter.

    工業終端市場占我們第三季度收入的 25%。

  • Third quarter industrial revenue grew by 51% year-over-year and by 1% as compared to the industrial revenue in the second quarter.

    第三季度工業收入同比增長51%,與第二季度工業收入相比增長1%。

  • Overall demand from industrial market remains healthy.

    工業市場整體需求保持健康。

  • We are seeing strong growth for our PYTHON line of image sensors for machine vision applications.

    我們看到用於機器視覺應用的 PYTHON 系列圖像傳感器的強勁增長。

  • We're also benefiting from demand of our power modules and power management semiconductor solutions for industrial applications.

    我們還受益於對工業應用的電源模塊和電源管理半導體解決方案的需求。

  • As we have indicated earlier, we have leveraged our expertise in consumer power modules and adapted many of our consumer power modules to industrial applications.

    如前所述,我們充分利用了我們在消費類電源模塊方面的專業知識,並將我們的許多消費類電源模塊應用於工業應用。

  • We continue to see solid strength in Fairchild's portfolio for the industrial market.

    我們繼續看到飛兆半導體在工業市場的產品組合實力雄厚。

  • With expanded capabilities and power modules and the addition of Fairchild's portfolio, we have one of the most comprehensive portfolios in the market for the industrial power management.

    憑藉擴展的功能和電源模塊以及 Fairchild 產品組合的增加,我們擁有工業電源管理市場上最全面的產品組合之一。

  • Customers are increasingly relying on us as a credible alternative to the current market leader.

    客戶越來越依賴我們作為當前市場領導者的可靠替代品。

  • In addition to benefits from secular growth in the industrial end market driven by increased automation and the need for higher energy efficiency, we should see incremental upside to our revenue, driven by share gains as customers reduce their reliance on a single provider.

    除了得益於自動化程度的提高和對更高能效的需求推動的工業終端市場的長期增長之外,隨著客戶減少對單一供應商的依賴,我們應該看到我們的收入增加,這是由於份額收益的推動。

  • Revenue in the fourth quarter for the industrial end market is expected to be down quarter-over-quarter.

    工業終端市場第四季度的收入預計將環比下降。

  • The communications end market, which includes both networking and wireless, contributed revenue of $282 million in the third quarter.

    包括網絡和無線在內的通信終端市場在第三季度貢獻了 2.82 億美元的收入。

  • Communications end market represented approximately 20% of our revenue in the third quarter.

    通信終端市場占我們第三季度收入的約 20%。

  • Third quarter communications revenue grew by 50% year-over-year and 9% quarter-over-quarter.

    第三季度通信收入同比增長 50%,環比增長 9%。

  • Third quarter communications revenue was negatively impacted by our exit from the mobile image sensor market in the second quarter of 2017.

    第三季度通信收入受到我們在 2017 年第二季度退出移動圖像傳感器市場的負面影響。

  • However, the launch of new platforms and continuing increase of our content in the major platforms more than offset the decline in mobile image sensor revenue.

    然而,新平台的推出以及我們在主要平台上內容的持續增加足以抵消移動圖像傳感器收入的下降。

  • As I noted earlier, we are seeing strong traction for our USB Type-C solutions in the smartphone market.

    正如我之前提到的,我們看到我們的 USB Type-C 解決方案在智能手機市場上具有強大的吸引力。

  • We expect strong growth in our USB Type-C related revenue from the smartphone market going forward.

    我們預計未來智能手機市場的 USB Type-C 相關收入將強勁增長。

  • Revenue in the fourth quarter for the communications end market is expected be down quarter-over-quarter due to normal seasonality.

    由於正常的季節性因素,通信終端市場第四季度的收入預計將環比下降。

  • The computing end market contributed revenue of $157 million in the third quarter.

    計算終端市場在第三季度貢獻了 1.57 億美元的收入。

  • The computing end market represented 11% of our revenue in the third quarter.

    計算終端市場占我們第三季度收入的 11%。

  • Third quarter computing revenue grew by 58% year-over-year and 16% quarter-over-quarter.

    第三季度計算收入同比增長 58%,環比增長 16%。

  • The growth in computing was driven by strength in both client and server solutions.

    計算的增長是由客戶端和服務器解決方案的實力推動的。

  • Our server business is off to a solid start with impressive revenue performance in the third quarter.

    我們的服務器業務開局良好,第三季度的收入表現令人印象深刻。

  • We're engaged with market leaders for cloud and server platforms, and we are very encouraged by early feedback on our cloud and server solutions.

    我們與雲和服務器平台的市場領導者合作,我們對我們的雲和服務器解決方案的早期反饋感到非常鼓舞。

  • Revenue in the fourth quarter for computing end market is expected to be down quarter-over-quarter due to normal seasonality.

    由於正常的季節性,第四季度計算終端市場的收入預計將環比下降。

  • The consumer end market contributed revenue of $192 million in the third quarter.

    消費者終端市場在第三季度貢獻了 1.92 億美元的收入。

  • The consumer end market represented 14% of our revenue in the third quarter.

    消費者終端市場占我們第三季度收入的 14%。

  • Third quarter consumer revenue grew by 59% year-over-year and by 2% quarter-over-quarter.

    第三季度消費者收入同比增長 59%,環比增長 2%。

  • Continued strength in white goods was a key driver of consumer-related revenue in the third quarter.

    白色家電的持續走強是第三季度消費者相關收入的主要推動力。

  • Revenue in the fourth quarter for the consumer end market is expected to be down quarter-over-quarter due to normal seasonality.

    由於正常的季節性因素,預計第四季度消費者終端市場的收入將環比下降。

  • In summary, we continue to deliver solid results, driven by strong execution on all fronts.

    總而言之,在各條戰線的強大執行力的推動下,我們將繼續取得可觀的成果。

  • Through our investments over the last many years in high-growth segments and in highly differentiated products in automotive, industrial and communications end markets, we have been successful in transforming ON Semiconductor into a company driven by sustainable secular growth drivers in the fastest-growing semiconductor end markets.

    通過我們在過去多年對汽車、工業和通信終端市場的高增長細分市場和高度差異化產品的投資,我們成功地將安森美半導體轉變為一家由增長最快的半導體行業的可持續長期增長驅動力驅動的公司終端市場。

  • From a company driven by macroeconomic and industrial cyclicality, we are making strong progress towards our target financial model, and we are increasingly confident of achieving the target model, barring significant macroeconomic downturn.

    作為一家受宏觀經濟和行業周期性驅動的公司,我們正在朝著我們的目標財務模型邁進,並且我們對實現目標模型越來越有信心,除非宏觀經濟出現顯著下滑。

  • We have shown impressive expansion in our margins, and our free cash flow generation has increased at a rapid pace.

    我們的利潤率已經顯示出令人印象深刻的增長,我們的自由現金流量也在快速增長。

  • Now I'd like to turn it back over to Bernard for forward-looking guidance.

    現在我想把它交還給伯納德以獲得前瞻性指導。

  • Bernard?

    伯納德?

  • Bernard Gutmann - CFO, EVP and Treasurer

    Bernard Gutmann - CFO, EVP and Treasurer

  • Thank you, Keith.

    謝謝你,基思。

  • Before I go into the details of the fourth quarter guidance, let me point out that the fourth quarter has 2 extra days as compared to the third quarter of 2017.

    在詳細介紹第四季度指引之前,讓我指出,與 2017 年第三季度相比,第四季度多出 2 天。

  • As the fourth quarter is predominantly front-end loaded, we don't expect incremental revenue due to the extra 2 days in the quarter.

    由於第四季度主要是前端加載,我們預計由於該季度額外的 2 天,收入不會增加。

  • However, we will have to bear fixed costs and operating expenses for the 2 extra days in the fourth quarter, and these costs will have slightly negative impact on gross margin and operating expenses for the fourth quarter.

    但是,我們將不得不承擔第四季度額外 2 天的固定成本和運營費用,這些成本將對第四季度的毛利率和運營費用產生輕微的負面影響。

  • Based on product booking trends, backlog levels and estimated turns levels, we anticipate that the total ON Semiconductor revenues will be $1.325 billion to $1.375 billion in the fourth quarter of 2017.

    根據產品預訂趨勢、積壓水平和預計周轉水平,我們預計 2017 年第四季度安森美半導體的總收入將在 13.25 億美元至 13.75 億美元之間。

  • Backlog levels for the fourth quarter of 2017 represent 80% to 85% of our anticipated fourth quarter revenue.

    2017 年第四季度的積壓水平占我們預期第四季度收入的 80% 至 85%。

  • For the fourth quarter of 2017, we expect GAAP and non-GAAP gross margin in the range of 36.3% to 36.8% -- to 38.3%.

    對於 2017 年第四季度,我們預計 GAAP 和非 GAAP 毛利率在 36.3% 至 36.8% 至 38.3% 的範圍內。

  • Factory utilization in the fourth quarter is likely to be down sequentially.

    第四季度的工廠利用率可能會環比下降。

  • We expect total GAAP operating expenses of $324 million to $345 million.

    我們預計 GAAP 總運營費用為 3.24 億美元至 3.45 億美元。

  • Our GAAP operating expenses include the amortization of intangibles, restructuring, asset impairments and other charges, which are expected to be in the $30 million to $37 million.

    我們的 GAAP 運營費用包括無形資產攤銷、重組、資產減值和其他費用,預計在 3000 萬美元至 3700 萬美元之間。

  • We expect total non-GAAP operating expenses of $294 million to $308 million.

    我們預計非美國通用會計準則運營費用總額為 2.94 億美元至 3.08 億美元。

  • The increase in operating expenses in the fourth quarter as compared to those in the third quarter is primarily driven by 2 extra days in the fourth quarter.

    與第三季度相比,第四季度運營費用增加的主要原因是第四季度額外增加了 2 天。

  • We anticipate fourth quarter GAAP net income and expense, including interest expense, will be in the $33 million to $36 million, which includes noncash interest expense of $8 million to $9 million.

    我們預計第四季度 GAAP 淨收入和費用(包括利息費用)將在 3300 萬美元至 3600 萬美元之間,其中包括 800 萬美元至 900 萬美元的非現金利息費用。

  • We anticipate our non-GAAP net other income and expense, including interest expense, will be in the $25 million to $27 million.

    我們預計我們的非公認會計原則淨其他收入和支出,包括利息支出,將在 2500 萬美元至 2700 萬美元之間。

  • Cash paid for income taxes in the fourth quarter of 2017 is expected to be $17 million to $21 million.

    2017 年第四季度為所得稅支付的現金預計為 1700 萬至 2100 萬美元。

  • Cash taxes are higher in the fourth quarter due to the timing of 2017 tax payments between quarters as required by the tax authorities in the jurisdictions we do business.

    由於我們開展業務的司法管轄區的稅務機關要求在季度之間支付 2017 年稅款的時間安排,第四季度的現金稅較高。

  • We expect our 2017 cash tax rate to be 10%.

    我們預計 2017 年的現金稅率為 10%。

  • We expect total capital expenditures of $140 million to $160 million in the fourth quarter of 2017.

    我們預計 2017 年第四季度的總資本支出為 1.4 億美元至 1.6 億美元。

  • As I indicated earlier, our capital intensity in the fourth quarter of 2017 will be higher to compensate for the lower capital intensity in the first 3 quarters of the year.

    正如我之前指出的,我們在 2017 年第四季度的資本密集度將更高,以彌補今年前三個季度較低的資本密集度。

  • Our target of 6% to 7% annual capital intensity remains unchanged.

    我們每年 6% 至 7% 的資本密集度目標保持不變。

  • We also expect share-based compensation of $16 million to $18 million in the fourth quarter of 2017, of which approximately $2 million is expected to be in cost of goods sold, and the remaining amount is expected to be in operating expenses.

    我們還預計 2017 年第四季度的股票薪酬為 1600 萬美元至 1800 萬美元,其中約 200 萬美元預計為銷售成本,其餘部分預計為運營費用。

  • This expense is included in our non-GAAP financial measures.

    這筆費用包含在我們的非公認會計原則財務措施中。

  • Our GAAP diluted share count for the fourth quarter of 2017 is expected to be in the 431 million to 433 million shares based on the current stock price.

    根據當前股價計算,我們 2017 年第四季度的 GAAP 稀釋後股票數量預計在 4.31 億至 4.33 億股之間。

  • Our non-GAAP diluted share count for the fourth quarter of 2017 is expected to be in the -- to be 428 million shares based on the current stock price.

    根據當前股價計算,我們 2017 年第四季度的非公認會計原則稀釋後的股票數量預計為 4.28 億股。

  • Further details on share count and earnings per share calculations are provided regularly in our quarterly and annual reports on Forms 10-Q and 10-K.

    我們的 10-Q 表格和 10-K 表格的季度和年度報告定期提供有關股票數量和每股收益計算的更多詳細信息。

  • With that, I would like to start the Q&A session.

    有了這個,我想開始問答環節。

  • Thank you, and Sonia, please open up the line for questions.

    謝謝你,索尼婭,請打開電話提問。

  • Operator

    Operator

  • (Operator Instructions) Our first question comes from the line of Ross Seymore of Deutsche Bank.

    (操作員說明)我們的第一個問題來自德意志銀行的 Ross Seymore。

  • Ross Clark Seymore - MD

    Ross Clark Seymore - MD

  • The first one is for Keith.

    第一個是給基思的。

  • Keith, you mentioned a couple times in your script about the company being less cyclical and addressing more secular growth.

    基思,你在你的劇本中提到了幾次關於公司減少週期性並解決更長期增長的問題。

  • So I guess, a two-pronged question.

    所以我想,一個兩管齊下的問題。

  • First, can you talk about what you think makes the company less cyclical?

    首先,您能否談談您認為公司的周期性降低的原因?

  • And then second, there's a lot of investor concern on the cyclical side of the equation.

    其次,投資者對等式的周期性方面存在很多擔憂。

  • Can you give us your view on where we are in the cycle?

    你能告訴我們你對我們在周期中的位置的看法嗎?

  • Keith D. Jackson - CEO, President and Director

    Keith D. Jackson - CEO, President and Director

  • Certainly.

    當然。

  • I think the first comment on secular is really looking at the longer-term growth trends.

    我認為對世俗的第一個評論實際上是在關注長期增長趨勢。

  • We've mentioned many times in automotive that the electrification and automation there is going to be driving significant growth independent of economic cycles.

    我們在汽車領域多次提到,電氣化和自動化將推動獨立於經濟周期的顯著增長。

  • We have the same kind of feeling about industrial.

    我們對工業也有同樣的感受。

  • There are a lot of applications there where we're automating buildings.

    那裡有很多我們正在使建築物自動化的應用程序。

  • We're looking at automating manufacturing, et cetera, and those trends will supersede any kind of economic cyclicality.

    我們正在研究自動化製造等,這些趨勢將取代任何類型的經濟周期性。

  • So we think those are the 2 dominant drivers making us much more secular.

    因此,我們認為這是使我們更加世俗化的兩個主要驅動因素。

  • Secondly, relative to how do we see the cycle, we continue to see strength on all fronts from our customers.

    其次,相對於我們如何看待週期,我們繼續從客戶的各個方面看到實力。

  • And as we look out, we don't see any macroeconomic landmines on the horizon.

    正如我們所看到的,我們看不到任何宏觀經濟地雷。

  • And so as a result, we expect to see continued growth into a longer-than-normal semiconductor cycle.

    因此,我們預計會看到持續增長,進入一個比正常更長的半導體週期。

  • Ross Clark Seymore - MD

    Ross Clark Seymore - MD

  • And then follow-up questions for Bernard.

    然後是伯納德的後續問題。

  • On the margin and free cash flow, great job on those metrics.

    在利潤率和自由現金流方面,這些指標做得很好。

  • As we look forward, can you give us an update on where we are for the Fairchild integration?

    正如我們所期待的那樣,您能否向我們介紹一下我們在仙童集成方面的最新進展?

  • I believe you said you had about $65 million of synergies remaining and you talked about the back-end consolidation kicking in.

    我相信您說過您還有大約 6500 萬美元的協同效應,並且您談到了後端整合的啟動。

  • Can you just walk us through the major steps to get that to incremental $65 million, please?

    請您指導我們完成主要步驟以增加 6500 萬美元嗎?

  • Bernard Gutmann - CFO, EVP and Treasurer

    Bernard Gutmann - CFO, EVP and Treasurer

  • The majority of it comes, as you stated, from the insourcing of assembly and test activities, which will start ramping towards the end of this year and will really ramp into 2018.

    正如您所說,其中大部分來自組裝和測試活動的內包,這將在今年年底開始加速,並將真正進入 2018 年。

  • We have launched multiple CapEx programs associated with that and they're all in the works.

    我們已經啟動了多個與此相關的資本支出計劃,它們都在進行中。

  • So we expect that to start really in earnest as we go into next year.

    因此,我們希望在我們進入明年時真正開始。

  • Operator

    Operator

  • Our next question comes from the line of Chris Danely of Citigroup.

    我們的下一個問題來自花旗集團的 Chris Danely。

  • Christopher Brett Danely - MD

    Christopher Brett Danely - MD

  • I think in the first part of the call, you mentioned lead times had gone out a little bit and then, Keith, you said that they haven't materially changed.

    我認為在電話會議的第一部分,你提到交貨時間已經有點過了,然後,Keith,你說它們並沒有發生實質性的變化。

  • So can you guys just maybe give us a sense of what will be a sort of an aggregate of your normal lead times and where they are right now and when would you expect those to get back to normal?

    那麼你們能否讓我們了解一下你們的正常交貨時間的總和,它們現在在哪裡,你希望這些時間什麼時候恢復正常?

  • Keith D. Jackson - CEO, President and Director

    Keith D. Jackson - CEO, President and Director

  • Yes.

    是的。

  • They've been operating not too far from the mid-teens for some time.

    他們已經在距十幾歲中期不遠的地方運營了一段時間。

  • They went up marginally here in the last quarter.

    他們在上個季度略微上漲。

  • Some of the capital we're bringing in here in Q4 should start to alleviate that by the middle of next year.

    我們在第四季度引入的一些資本應該會在明年年中開始緩解這種情況。

  • Christopher Brett Danely - MD

    Christopher Brett Danely - MD

  • And so you said they went up a little bit.

    所以你說他們上升了一點。

  • Did they go up by a day, 2 days, a week, a weekday?

    他們上漲了一天,兩天,一周,一個工作日嗎?

  • How much did they go up?

    他們漲了多少?

  • Keith D. Jackson - CEO, President and Director

    Keith D. Jackson - CEO, President and Director

  • Not even -- a day or less.

    甚至——一天或更短的時間。

  • Christopher Brett Danely - MD

    Christopher Brett Danely - MD

  • Okay.

    好的。

  • And the second question would be just on the capital structure.

    第二個問題只是關於資本結構。

  • You said you might be able to institute a capital return program.

    你說你可以製定一個資本回報計劃。

  • Maybe just talk about how we should think of the debt paydown going forward and then what a capital return program would look like.

    也許只是談談我們應該如何看待未來的債務償還以及資本回報計劃會是什麼樣子。

  • Bernard Gutmann - CFO, EVP and Treasurer

    Bernard Gutmann - CFO, EVP and Treasurer

  • So as debt matures naturally, we have redeemable debt.

    因此,隨著債務自然到期,我們就有了可贖回的債務。

  • At that time, we'll continue paying that down.

    屆時,我們將繼續支付。

  • And we'll be discussing with our board the capital allocation policy going forward.

    我們將與董事會討論未來的資本分配政策。

  • Operator

    Operator

  • Our next question comes from Vivek Arya from Bank of America Merrill Lynch.

    我們的下一個問題來自美銀美林的 Vivek Arya。

  • Vivek Arya - Director

    Vivek Arya - Director

  • One more on the capital returns program since you a bit tantalized us with that remark in your prepared comments.

    另一個關於資本回報計劃的內容,因為您在準備好的評論中對我們的評論有點挑逗我們。

  • Keith, are you more -- are you favoring more a buyback program or an initiation of dividend?

    基思,你更喜歡回購計劃還是開始派息?

  • Because when I look at the free cash flow yield, it's 7% to 8% on the stock right now, so quite attractive.

    因為當我查看自由現金流收益率時,目前股票的收益率為 7% 到 8%,非常有吸引力。

  • The other option, of course, is to consider additional M&A and maybe expand gross margins beyond the 40% target.

    當然,另一種選擇是考慮額外的併購,並可能將毛利率擴大到 40% 的目標以上。

  • So without any quantification, if you could give us some additional color on which way you are leaning, that would be very helpful.

    因此,在沒有任何量化的情況下,如果你能給我們一些關於你傾斜的方向的額外顏色,那將非常有幫助。

  • Keith D. Jackson - CEO, President and Director

    Keith D. Jackson - CEO, President and Director

  • We have active authorization for stock buyback, but the board is discussing whether there are other means similar to what you just discussed that might be better, in the long term, for the shareholders.

    我們對股票回購有積極的授權,但董事會正在討論是否還有其他類似於你剛才討論的方式,從長遠來看,對股東來說可能更好。

  • And so we won't give any more clarity to that until next quarter.

    因此,直到下個季度,我們才會更清楚地說明這一點。

  • Vivek Arya - Director

    Vivek Arya - Director

  • I see.

    我懂了。

  • And then in terms of the competitive landscape, we have heard more noise coming out of Sony in terms of their intention to compete in the automotive image sensor market.

    然後在競爭格局方面,我們聽到索尼在汽車圖像傳感器市場競爭的意圖方面發出了更多的聲音。

  • I understand these relationships with customers tend to be long term, so there's probably no change in the near term.

    我知道這些與客戶的關係往往是長期的,所以短期內可能沒有變化。

  • But just longer term, do you -- how do you see your technology and your technology position in the automotive image sensor market versus Sony or any other competitor?

    但從長遠來看,您如何看待您的技術以及與索尼或任何其他競爭對手相比,您在汽車圖像傳感器市場中的技術地位?

  • Keith D. Jackson - CEO, President and Director

    Keith D. Jackson - CEO, President and Director

  • Yes.

    是的。

  • We continue to drive technology specific to automotive that we think are a competitive advantage across the board.

    我們將繼續推動我們認為具有全面競爭優勢的汽車專用技術。

  • We also have many years of experience in automotive reliability and quality, along with cybersecurity and functional security.

    我們還在汽車可靠性和質量以及網絡安全和功能安全方面擁有多年經驗。

  • So we think we've got a lead there that we can maintain with continued investments specific to the automotive industry.

    因此,我們認為我們在這方面取得了領先地位,我們可以通過針對汽車行業的持續投資來保持這一領先地位。

  • Vivek Arya - Director

    Vivek Arya - Director

  • And the same question from a cost perspective that -- how do you think your cost basis compares with some of your competitors who might have higher volumes, just because they're engaged in the smartphone industry?

    從成本的角度來看,同樣的問題是——你認為你的成本基礎與你的一些競爭對手相比如何,因為他們從事智能手機行業?

  • Keith D. Jackson - CEO, President and Director

    Keith D. Jackson - CEO, President and Director

  • Yes, we believe we continue to be cost competitive there, having driven, like we do in all of our product lines, very good supply chains and very good manufacturing efficiencies.

    是的,我們相信我們在那裡繼續具有成本競爭力,就像我們在所有產品線中所做的那樣,非常好的供應鍊和非常好的製造效率。

  • Operator

    Operator

  • Our next question comes from Chris Caso of Raymond James.

    我們的下一個問題來自 Raymond James 的 Chris Caso。

  • Christopher Caso - Research Analyst

    Christopher Caso - Research Analyst

  • Wonder if you could talk a bit about seasonality, both in terms of what you would consider to be normal seasonality in the fourth quarter and how your guidance shapes up against that.

    想知道您是否可以談談季節性,包括您認為第四季度的正常季節性以及您的指導如何與之相適應。

  • As we look into next year, there are a lot of moving parts as we go into Q1.

    當我們展望明年時,進入第一季度會有很多變化。

  • But now that Fairchild's been on the books for quite a while, where do you see normal seasonality in Q1?

    但是現在 Fairchild 已經上市很長一段時間了,您認為第一季度的正常季節性在哪裡?

  • Bernard Gutmann - CFO, EVP and Treasurer

    Bernard Gutmann - CFO, EVP and Treasurer

  • Thanks, Chris.

    謝謝,克里斯。

  • So we believe our normal blended seasonality for the fourth quarter is in that 2% to 4%, so approximately 3%, of which we believe that our guidance matches that normal seasonality.

    因此,我們認為我們第四季度的正常混合季節性在 2% 到 4% 之間,因此約為 3%,我們認為我們的指導與正常的季節性相匹配。

  • Fairchild had a more pronounced seasonality than ON, but the combined blended average is that approximately 3%.

    Fairchild 的季節性比 ON 更明顯,但綜合混合平均值約為 3%。

  • For Q1, we look in that range of 0% to [2%] down.

    對於第一季度,我們認為下降了 0% 到 [2%]。

  • Christopher Caso - Research Analyst

    Christopher Caso - Research Analyst

  • Okay.

    好的。

  • And going forward, just with regard to pricing, given the tight supply conditions industry-wide, I have to imagine that pricing is favorable and likely coming down less than where your costs are.

    展望未來,僅就定價而言,鑑於整個行業的供應緊張,我不得不想像定價是有利的,並且可能會低於您的成本。

  • So with that in mind and also the annual price negotiations you guys typically have in Q1, what should we think about pricing as we go into next year?

    因此,考慮到這一點以及你們通常在第一季度進行的年度價格談判,我們應該如何看待明年的定價?

  • And what potential impact could that have on margins as we look into 2018?

    展望 2018 年,這會對利潤率產生什麼潛在影響?

  • Keith D. Jackson - CEO, President and Director

    Keith D. Jackson - CEO, President and Director

  • So normally, we see 5% to 6% price erosion a year.

    所以通常情況下,我們會看到每年 5% 到 6% 的價格侵蝕。

  • We are currently experiencing less than that rate, and I would expect that to continue into next year.

    我們目前的速度低於這個速度,我預計這種情況會持續到明年。

  • Our annual cost reduction internally, we try to target to be faster than those price erosions, and so I would expect to see margin pickup.

    我們內部的年度成本降低,我們試圖以比那些價格侵蝕更快的速度為目標,因此我希望看到利潤率回升。

  • Exact basis points, I'm not sure I can give a forecast on, but it should be quite favorable in our margin gains towards our targets.

    確切的基點,我不確定我能否給出預測,但它應該對我們實現目標的利潤率增長非常有利。

  • Operator

    Operator

  • Our next question comes from Craig Ellis of FBR B. Riley.

    我們的下一個問題來自 FBR B. Riley 的 Craig Ellis。

  • Craig Andrew Ellis - Senior MD & Director of Research

    Craig Andrew Ellis - Senior MD & Director of Research

  • Keith, first, congratulations on the numerous accomplishments in the quarter.

    基思,首先,祝賀本季度取得的眾多成就。

  • Two, if we just look at this year's free cash flow generation at $700 million and think about what that means over the 3-year target model period, that's $2.1 billion of value-creation flexibility that you now have in the business.

    第二,如果我們只看今年 7 億美元的自由現金流量,想想這在 3 年目標模型期內意味著什麼,那就是你現在在業務中擁有的 21 億美元的價值創造靈活性。

  • So as you look at the $2 in earnings per share target for 2020, one, how much does this year's expanded free cash flow increase your confidence in attainability; and two, doesn't it mean that there's significant pull-in potential from 2020 given the levers that you now have at your disposal?

    因此,當您查看 2020 年每股收益 2 美元的目標時,一,今年擴大的自由現金流在多大程度上增加了您對可實現性的信心;第二,這是否意味著鑑於您現在可以使用的槓桿,從 2020 年開始有很大的拉動潛力?

  • Bernard Gutmann - CFO, EVP and Treasurer

    Bernard Gutmann - CFO, EVP and Treasurer

  • So thanks, Craig.

    所以,謝謝,克雷格。

  • Definitely, we are very happy with the free cash flow evolving right now.

    毫無疑問,我們對目前正在發展的自由現金流感到非常滿意。

  • It does provide us a significant amount of increased confidence that we will be able to achieve our promised target model.

    它確實為我們提供了極大的信心,相信我們將能夠實現我們承諾的目標模型。

  • And indeed, it would point into potentially, even accelerating that target.

    事實上,它可能會指向甚至加速該目標。

  • Craig Andrew Ellis - Senior MD & Director of Research

    Craig Andrew Ellis - Senior MD & Director of Research

  • All right.

    好的。

  • And then the follow-up is on the PC business.

    然後是PC業務。

  • Obviously, very strong quarter there.

    顯然,那裡的季度非常強勁。

  • And the question is how much of the sequential growth came from gains in the server business?

    問題是有多少連續增長來自服務器業務的收益?

  • And as we look to 2018, how should we think about the evolution of mix between the legacy PC business and the growth that the company is now realizing with server power?

    展望 2018 年,我們應該如何看待傳統 PC 業務與公司現在通過服務器能力實現的增長之間的混合演變?

  • Keith D. Jackson - CEO, President and Director

    Keith D. Jackson - CEO, President and Director

  • Most of that did come from server power.

    其中大部分確實來自服務器電源。

  • And I would expect going forward that, that will be the increases that you see.

    而且我希望繼續前進,這將是你看到的增長。

  • For a lot of reasons in the end markets, the kind of personal computer use has flattened out and plateaued.

    由於終端市場的許多原因,個人電腦的使用已經趨於平緩和平穩。

  • So it's really -- we're looking for growth in the server power side.

    所以它真的 - 我們正在尋找服務器電源方面的增長。

  • Operator

    Operator

  • Our next question comes from Vijay Rakesh of Mizuho.

    我們的下一個問題來自瑞穗的 Vijay Rakesh。

  • Vijay Raghavan Rakesh - MD of Americas Research & Senior Semiconductor Analyst

    Vijay Raghavan Rakesh - MD of Americas Research & Senior Semiconductor Analyst

  • Just looking at 2018, there's a lot of worry around the automotive side, but content continues to grow.

    僅看 2018 年,汽車方面有很多擔憂,但內容仍在繼續增長。

  • Is there a way you can take a look in the crystal ball and see how -- tell us how 2018 looks just automotive-wise?

    有沒有一種方法可以讓你看看水晶球,看看如何——告訴我們 2018 年在汽車方面的表現如何?

  • Keith D. Jackson - CEO, President and Director

    Keith D. Jackson - CEO, President and Director

  • Yes.

    是的。

  • So obviously, we have the same forecast everyone has on SAR.

    所以很明顯,我們對每個人都對 SAR 有相同的預測。

  • We're looking at the low 1%, 2% ranges.

    我們正在研究低 1%、2% 的範圍。

  • But from a content perspective, significant, more adoption on ADAS, we think, gives us kind of the high single-digit opportunity in 2018.

    但從內容的角度來看,我們認為,ADAS 的顯著、更多采用為我們提供了 2018 年的高個位數機會。

  • Vijay Raghavan Rakesh - MD of Americas Research & Senior Semiconductor Analyst

    Vijay Raghavan Rakesh - MD of Americas Research & Senior Semiconductor Analyst

  • Got it.

    知道了。

  • And then as a camera ADAS supplier, you guys have worked and collaborated with Nvidia and Mobileye.

    然後作為攝像頭 ADAS 供應商,你們與 Nvidia 和 Mobileye 合作過。

  • You mentioned AI.

    你提到了人工智能。

  • Can you talk to us what you're doing there?

    你能和我們談談你在那裡做什麼嗎?

  • And what is the book-to-bill in automotive here?

    這裡的汽車帳單到帳單是什麼?

  • Keith D. Jackson - CEO, President and Director

    Keith D. Jackson - CEO, President and Director

  • Okay, those are diverse questions.

    好的,這些都是不同的問題。

  • Book-to-bill continues to be above 1 in automotive, as frankly it is in all markets right now, so I'm not going to give you those numbers.

    汽車行業的訂單出貨量繼續高於 1,坦率地說,現在所有市場都如此,所以我不會給你這些數字。

  • On the AI front, there's 2 areas that we collaborate on.

    在人工智能方面,我們在兩個領域進行合作。

  • One is what the power for AI it's going to -- significantly more compute power, and this is part of our power supply program.

    一個是人工智能的能力——顯著增加計算能力,這是我們電源計劃的一部分。

  • And then secondly, interfacing with all of the sensors, and the sensor interface products is predominantly where we interface with the AI people directly on the signal side.

    其次,與所有傳感器進行交互,傳感器接口產品主要是我們直接在信號端與 AI 人員交互的地方。

  • Operator

    Operator

  • Our next question comes from Rajvindra Gill of Needham & Company.

    我們的下一個問題來自 Needham & Company 的 Rajvindra Gill。

  • Rajvindra S. Gill - Senior Analyst of Microcontrollers, Analog & Mixed Signal; Consumer IC & Multi-Market

    Rajvindra S. Gill - Senior Analyst of Microcontrollers, Analog & Mixed Signal; Consumer IC & Multi-Market

  • Question on the silicon carbide traction you're getting.

    關於你得到的碳化矽牽引力的問題。

  • I just want to get some clarification.

    我只是想澄清一下。

  • Are you selling both the silicon carbide substrates, the wafers as well as the power RF devices that are built on those silicon substrates?

    您是否同時銷售碳化矽襯底、晶圓以及構建在這些矽襯底上的功率射頻器件?

  • And along those same lines, kind of how would you talk -- how would you characterize the competitive landscape in silicon carbide in terms of capacity and technological capability?

    沿著同樣的思路,你會如何談論——你如何描述碳化矽在產能和技術能力方面的競爭格局?

  • Keith D. Jackson - CEO, President and Director

    Keith D. Jackson - CEO, President and Director

  • So we are only selling silicon carbide power devices.

    所以我們只賣碳化矽功率器件。

  • We don't sell substrates, and that market is growing quite rapidly.

    我們不銷售基板,而這個市場正在迅速增長。

  • It needs more than one supplier, and there are, I think, 2 or 3 total competitors out there.

    它需要不止一個供應商,而且我認為總共有 2 或 3 個競爭對手。

  • So we see a lot of healthy growth there in a market that is going to explode quite literally from a growth perspective in 2019 -- 2018, 2019 time frame.

    因此,從 2019 年(2018 年、2019 年的時間框架)的增長角度來看,我們看到一個市場將出現大量健康增長。

  • Rajvindra S. Gill - Senior Analyst of Microcontrollers, Analog & Mixed Signal; Consumer IC & Multi-Market

    Rajvindra S. Gill - Senior Analyst of Microcontrollers, Analog & Mixed Signal; Consumer IC & Multi-Market

  • And just one follow-up on that as well because I agree with that assessment.

    因為我同意這一評估,所以也只是對此進行了一次跟進。

  • For my perspective, the biggest advantage of silicon carbide power devices is their abilities to do high-frequency switching at lower temperature than silicon.

    在我看來,碳化矽功率器件的最大優勢在於它們能夠在比矽更低的溫度下進行高頻開關。

  • I was wondering if you could describe some of the advantages from your perspective and what's driving the adoption on -- for that technology.

    我想知道您是否可以從您的角度描述一些優勢以及推動採用該技術的原因。

  • Keith D. Jackson - CEO, President and Director

    Keith D. Jackson - CEO, President and Director

  • Yes.

    是的。

  • You get much higher efficiencies in your power conversion, which means you don't have to do as much cooling.

    您的電源轉換效率要高得多,這意味著您不必進行過多的冷卻。

  • And that removes a lot of cooling weight from the automobiles, giving them longer battery lives, et cetera.

    這消除了汽車的大量冷卻重量,使它們的電池壽命更長,等等。

  • You also get much more dense power solutions, so they could be much smaller, to get the same performance.

    您還可以獲得更密集的電源解決方案,因此它們可以更小,以獲得相同的性能。

  • Operator

    Operator

  • Our next question comes from Shawn Harrison of Longbow Research.

    我們的下一個問題來自 Longbow Research 的 Shawn Harrison。

  • Shawn Matthew Harrison - Senior Research Analyst

    Shawn Matthew Harrison - Senior Research Analyst

  • First question, just a 2-parter on the communications business.

    第一個問題,只是通信業務的 2 方。

  • How much of the -- just walking away from the mobile image sensor business, did that cost you into the September quarter?

    剛剛離開移動圖像傳感器業務,您在 9 月季度花費了多少?

  • And then are you expecting to see maybe less-than-seasonal headwinds as we move into the March quarter given the later launch of the iPhone this year?

    然後,鑑於今年晚些時候推出的 iPhone,隨著我們進入 3 月季度,您是否預計可能會看到不那麼季節性的逆風?

  • Keith D. Jackson - CEO, President and Director

    Keith D. Jackson - CEO, President and Director

  • So the direct revenue quarter-on-quarter between 2 and 3 was a $12 million reduction that we saw in that.

    因此,我們在 2 到 3 之間看到的直接收入環比減少了 1200 萬美元。

  • From a year earlier, it was much higher, but quarter-on-quarter, about $12 million.

    與一年前相比,這一數字要高得多,但與上一季度相比,約為 1200 萬美元。

  • Yes, there were later launches for certain of the phones.

    是的,某些手機後來發布了。

  • We do expect to have the opportunity for a stronger-than-normal seasonality in Q1.

    我們確實預計第一季度有機會出現強於正常的季節性。

  • How much is yet to be determined.

    多少還有待確定。

  • Shawn Matthew Harrison - Senior Research Analyst

    Shawn Matthew Harrison - Senior Research Analyst

  • Perfect.

    完美的。

  • And then as a follow-up, if I may.

    然後作為後續行動,如果可以的話。

  • If we look at the typical step-up that you see in OpEx going into the March quarter, variable comp will reset and other things, how much of that on a dollar basis may it step up, understanding that there's a little bit of an extra 2-day dynamic here in the fourth quarter?

    如果我們看一下您在進入 3 月季度的 OpEx 中看到的典型提升,變量補償將重置和其他事情,以美元為基礎,它可能會增加多少,了解有一點額外的第四季度的兩天動態?

  • Bernard Gutmann - CFO, EVP and Treasurer

    Bernard Gutmann - CFO, EVP and Treasurer

  • With the extra 2 days going away, I expect that the OpEx will be down.

    隨著額外 2 天的結束,我預計 OpEx 將會下降。

  • Shawn Matthew Harrison - Senior Research Analyst

    Shawn Matthew Harrison - Senior Research Analyst

  • Down on a sequential dollar basis for the March quarter?

    3 月季度的美元環比下降?

  • Bernard Gutmann - CFO, EVP and Treasurer

    Bernard Gutmann - CFO, EVP and Treasurer

  • Yes.

    是的。

  • Operator

    Operator

  • Our next question comes from Christopher Rolland of Susquehanna International Financial Group.

    我們的下一個問題來自 Susquehanna International Financial Group 的 Christopher Rolland。

  • Christopher Adam Jackson Rolland - Senior Analyst

    Christopher Adam Jackson Rolland - Senior Analyst

  • So divestitures, maybe any more details on the mobile divestiture or at least IP agreement?

    那麼資產剝離,也許關於移動資產剝離或至少IP協議的更多細節?

  • And also, you mentioned another pending divestiture that you might -- you guys might be doing.

    而且,您還提到了您可能正在做的另一項未決資產剝離。

  • Is it bigger or smaller than the mobile one?

    是比手機大還是小?

  • And how many other opportunities do you kind of see to divest some businesses?

    您認為還有多少其他機會可以剝離一些業務?

  • Keith D. Jackson - CEO, President and Director

    Keith D. Jackson - CEO, President and Director

  • Details will be coming out in the 10-Q, but that mobile business is completed as divestiture.

    詳細信息將在 10-Q 中公佈,但該移動業務已作為剝離完成。

  • The other ones we referred to will be smaller than that one.

    我們提到的其他的將比那個小。

  • That'll be announced here in this quarter.

    這將在本季度在這裡宣布。

  • Christopher Adam Jackson Rolland - Senior Analyst

    Christopher Adam Jackson Rolland - Senior Analyst

  • Great.

    偉大的。

  • And then back to your position -- more around the silicon carbide stuff and your position in high power as well.

    然後回到你的位置 - 更多地圍繞碳化矽材料以及你在高功率方面的位置。

  • Maybe you want to describe that.

    也許你想描述一下。

  • Does silicon carbide open up a bunch of new markets for you in higher power?

    碳化矽是否以更高的功率為您開闢了一堆新市場?

  • And then also, what are your feelings on GaN?

    然後,您對 GaN 有什麼看法?

  • Are you now significantly favoring silicon carbide over GaN?

    您現在是否更偏愛碳化矽而不是 GaN?

  • Keith D. Jackson - CEO, President and Director

    Keith D. Jackson - CEO, President and Director

  • Okay.

    好的。

  • Silicon carbide, we're supplying today into the industrial market.

    碳化矽,我們今天向工業市場供應。

  • Basically, it goes into modules, power modules that we have IGBTs in today.

    基本上,它進入了我們今天擁有的 IGBT 的模塊、功率模塊。

  • So some of it is displacement of IGBTs with silicon carbide in the same modules, giving us higher efficiency.

    因此,其中一些是在相同模塊中用碳化矽取代 IGBT,從而提高效率。

  • And some of it, to your point, does open up new applications where either power density or thermal capacity are most important.

    就您的觀點而言,其中一些確實開闢了新的應用,其中功率密度或熱容量是最重要的。

  • GaN will continue to grow at a much slower pace.

    GaN 將繼續以慢得多的速度增長。

  • Our belief is that silicon carbide will be growing very, very quickly, but gallium nitride power devices will take off much more slowly.

    我們的信念是,碳化矽將會非常、非常快速地增長,但氮化鎵功率器件的起飛速度會慢得多。

  • Operator

    Operator

  • Our next question comes from of Anthony Stoss of Craig-Hallum.

    我們的下一個問題來自 Craig-Hallum 的 Anthony Stoss。

  • Anthony Joseph Stoss - Partner & Senior Research Analyst

    Anthony Joseph Stoss - Partner & Senior Research Analyst

  • Within your implied CapEx guide of next year of, call it, $350 million, is the Fujitsu strategic investment, is that part or included or is that on top of it?

    在你隱含的明年資本支出指南中,稱之為 3.5 億美元,是富士通的戰略投資,是部分還是包括在內,還是在它之上?

  • Then also, Keith, do you expect your normal 75%-25% internal versus external manufacturing due to change in 2018?

    然後,Keith,您是否預計由於 2018 年的變化,您正常的 75%-25% 的內部製造與外部製造?

  • Then I had a follow-up.

    然後我進行了跟進。

  • Bernard Gutmann - CFO, EVP and Treasurer

    Bernard Gutmann - CFO, EVP and Treasurer

  • So the Fujitsu joint venture is not included in that number.

    所以富士通合資企業不包括在這個數字中。

  • That's recorded in a different place on the cash flow statement, so it is incremental on top of the regular CapEx.

    這記錄在現金流量表的不同位置,因此它是常規資本支出之上的增量。

  • Anthony Joseph Stoss - Partner & Senior Research Analyst

    Anthony Joseph Stoss - Partner & Senior Research Analyst

  • Okay.

    好的。

  • And then as a follow-up, in terms of the divestitures that you're alluding to happening in Q4, how much revenue have you been anticipating in your Q4 revenue guide as a part of that?

    然後作為後續行動,就您在第四季度發生的資產剝離而言,您在第四季度收入指南中預計會有多少收入作為其中的一部分?

  • Keith D. Jackson - CEO, President and Director

    Keith D. Jackson - CEO, President and Director

  • It would actually -- I mean, it's negligible.

    實際上——我的意思是,它可以忽略不計。

  • The answer to that is again, the -- we're anticipating that move, and so there's nothing in the guidance.

    答案是——我們期待著這一舉動,所以指南中沒有任何內容。

  • Operator

    Operator

  • Our next question comes from Tristan Gerra of Baird.

    我們的下一個問題來自 Baird 的 Tristan Gerra。

  • Tristan Gerra - MD and Senior Research Analyst

    Tristan Gerra - MD and Senior Research Analyst

  • As a follow-up to the prior question from Chris and given the extension of backlog that we generally see in analog, you probably have very good visibility into early next year.

    作為 Chris 上一個問題的後續,並且考慮到我們通常在模擬中看到的積壓工作的擴展,您可能對明年初有很好的了解。

  • Any sense of how Q1 is currently shaping?

    了解 Q1 目前的情況如何?

  • You have already mentioned what type of seasonality we should be expecting.

    您已經提到我們應該期待什麼樣的季節性。

  • Keith D. Jackson - CEO, President and Director

    Keith D. Jackson - CEO, President and Director

  • Yes.

    是的。

  • So it's shaping up strong compared to normal seasonality.

    因此,與正常的季節性相比,它的形成強勁。

  • But again, specific metrics, you'll have to wait.

    但同樣,具體的指標,你必須等待。

  • Tristan Gerra - MD and Senior Research Analyst

    Tristan Gerra - MD and Senior Research Analyst

  • Okay, that's great.

    好的,那太好了。

  • And then at the beginning of this year, you highlighted some areas that you thought could really drive growth in auto, specifically automotive sensors and LED headlights.

    然後在今年年初,您強調了一些您認為可以真正推動汽車增長的領域,特別是汽車傳感器和 LED 大燈。

  • Today, you've mentioned your expectation for ADAS to be a high single-digit growth.

    今天,您提到了您對 ADAS 的高個位數增長的期望。

  • I'm assuming that's your CMOS sensor business, you also talked about, silicon carbide.

    我假設這是您的 CMOS 傳感器業務,您也談到了碳化矽。

  • Any sense of the -- first, any other areas within automotive that you would consider as a driving factor for '18?

    有什麼感覺——首先,您認為汽車中的任何其他領域是 18 年的驅動因素嗎?

  • And also, if you could talk about the incremental dollar opportunity that you see from silicon carbide per car.

    而且,如果你能談談你從每輛車的碳化矽中看到的增量美元機會。

  • Keith D. Jackson - CEO, President and Director

    Keith D. Jackson - CEO, President and Director

  • Okay.

    好的。

  • So for clarification, the upper single digits is for total automotive growth, not just in those applications.

    因此,為了澄清,上個位數是汽車總增長,而不僅僅是這些應用。

  • Things like ADAS are actually in the 20s percent growth on year -- year-on-year, and LED headlights are in the high teens.

    像 ADAS 這樣的東西實際上是在 20% 的年增長率 - 年同比,而 LED 前照燈則處於十幾歲。

  • So the aggregate number is high single digits, just for clarity.

    因此,為了清楚起見,總數是高個位數。

  • So we are expecting very fast growth in the developing areas inside the car, but we have a large business that includes internal combustion engines that is not growing as fast, so the net of that is high single digits.

    因此,我們預計汽車內部的發展中領域將實現非常快速的增長,但我們有一項包括內燃機在內的大型業務增長速度不快,因此淨額為高個位數。

  • And then as far as other areas, there are many areas in the car growing.

    再就其他領域而言,還有很多領域在汽車成長。

  • They're replacing all the motors with new brushless DC motors.

    他們正在用新的無刷直流電機替換所有電機。

  • We've got the EV and hybrid electronic applications that can add up to $200 per car.

    我們有電動汽車和混合動力電子應用,每輛汽車的成本最高可達 200 美元。

  • And silicon carbide certainly is a contributor to that.

    碳化矽當然是其中的一個貢獻者。

  • But in those modules, it could be $40 to $50 additional for silicon carbide.

    但在這些模塊中,碳化矽可能要多花 40 到 50 美元。

  • Operator

    Operator

  • Our next question comes from Mark Delaney of Goldman Sachs.

    我們的下一個問題來自高盛的馬克德萊尼。

  • Mark Trevor Delaney - Equity Analyst

    Mark Trevor Delaney - Equity Analyst

  • First question is on factory utilization rate.

    第一個問題是工廠利用率。

  • I know it was mentioned as ticking up again this quarter.

    我知道它在本季度再次被提及。

  • I think as of 1Q, it's in the mid-80s.

    我認為截至 1Q,它是在 80 年代中期。

  • So can you level set us on where factory utilization is at this point and is it over 90%?

    那麼,您能否確定目前工廠利用率的水平,是否超過 90%?

  • Bernard Gutmann - CFO, EVP and Treasurer

    Bernard Gutmann - CFO, EVP and Treasurer

  • It is approximately in the high 80s to 90%.

    它大約在 80 年代的高位到 90%。

  • It's not above.

    不在上面。

  • Mark Trevor Delaney - Equity Analyst

    Mark Trevor Delaney - Equity Analyst

  • Got it.

    知道了。

  • And then for a follow-up question, specifically on the industrial market, Keith, I know you said down in the fourth quarter and seasonality is always tough.

    然後是一個後續問題,特別是關於工業市場,基思,我知道你在第四季度說過,季節性總是很艱難。

  • Some areas just were down and -- per my models, some of yours has been up.

    一些地區剛剛下降,而根據我的模型,你的一些地區已經上升。

  • If you could just elaborate a bit more on what you're seeing in the industrial market and what's the reason for the guidance to be lower sequentially in 4Q?

    如果您能詳細說明一下您在工業市場上看到的情況,以及第四季度的指導值環比下降的原因是什麼?

  • Keith D. Jackson - CEO, President and Director

    Keith D. Jackson - CEO, President and Director

  • Just -- we're just giving the guidance based on the broad-based exposure we see in the marketplace.

    只是 - 我們只是根據我們在市場上看到的廣泛曝光提供指導。

  • There's no -- nothing that stands out as being a problem.

    沒有——沒有什麼是突出的問題。

  • Maybe a pause, but there's no problems.

    也許暫停,但沒有問題。

  • Operator

    Operator

  • Our next question comes from John Pitzer of Crédit Suisse.

    我們的下一個問題來自瑞士信貸的約翰·皮策。

  • John William Pitzer - MD, Global Technology Strategist and Global Technology Sector Head

    John William Pitzer - MD, Global Technology Strategist and Global Technology Sector Head

  • Bernard, I wanted to go back a little bit to the Fujitsu deal and hope that you give us some understanding of what the CapEx -- incremental CapEx burden would be.

    伯納德,我想回顧一下富士通的交易,希望你能讓我們對資本支出有所了解——增加資本支出的負擔。

  • And I'm assuming if there's an incremental CapEx burden to that deal, there's an incremental positive running through the P&L.

    我假設如果這筆交易增加了資本支出負擔,那麼損益表就會增加積極的影響。

  • So is Fujitsu part of the 2020 margin target plan?

    那麼富士通是 2020 年利潤目標計劃的一部分嗎?

  • Or is it above and beyond that?

    還是超出了這個範圍?

  • And can you quantify that?

    你能量化嗎?

  • Bernard Gutmann - CFO, EVP and Treasurer

    Bernard Gutmann - CFO, EVP and Treasurer

  • Definitely, it's part of our factory footprint plans.

    當然,這是我們工廠足跡計劃的一部分。

  • As we -- when we announced it on October 10, we basically said that getting to that incremental 30% in ownership will cost us $18 million.

    正如我們 - 當我們在 10 月 10 日宣布它時,我們基本上說要增加 30% 的所有權將花費我們 1800 萬美元。

  • That's a very, very cost-effective way of getting incremental capital, much better than if we had to buy just the pure equipment.

    這是獲得增量資本的一種非常、非常划算的方式,比我們只購買純設備要好得多。

  • It will definitely give us a significant amount of 200-millimeter incremental capacity that will help us relieve some of the tightness we have in some of the -- our packages in markets.

    它肯定會為我們提供大量 200 毫米的增量容量,這將幫助我們緩解我們在市場上的某些封裝中的一些緊張。

  • John William Pitzer - MD, Global Technology Strategist and Global Technology Sector Head

    John William Pitzer - MD, Global Technology Strategist and Global Technology Sector Head

  • But just so I'm clear, Bernard, it's part of the 2020 margin plan or this would be above and beyond?

    但我很清楚,伯納德,這是 2020 年保證金計劃的一部分,還是會超出預期?

  • Bernard Gutmann - CFO, EVP and Treasurer

    Bernard Gutmann - CFO, EVP and Treasurer

  • No, it's part of it, of getting the required capacity to get to -- to deliver the revenues associated with the plan.

    不,這是其中的一部分,獲得所需的能力以實現與計劃相關的收入。

  • John William Pitzer - MD, Global Technology Strategist and Global Technology Sector Head

    John William Pitzer - MD, Global Technology Strategist and Global Technology Sector Head

  • Perfect.

    完美的。

  • And then, Keith, I wanted to go back to Ross' first question about just where we are in the cycle.

    然後,基思,我想回到羅斯的第一個問題,即我們在周期中的位置。

  • When I look at your business sort of direct, disti and EMS, the direct numbers would clearly suggest that things aren't overheating.

    當我查看您的直接業務、分銷和 EMS 業務時,直接數字會清楚地表明事情並沒有過熱。

  • I think you were up about 1% sequentially, 4% year-over-year.

    我認為您連續增長約 1%,同比增長 4%。

  • But when you sort of look at disti up 16% year-over-year and then EMS up 18% sequentially and 20% year-over-year, can you just -- is there anything going on in the mix of business that would argue things moving more towards disti.

    但是,當你看到 disti 同比增長 16%,然後 EMS 環比增長 18% 和同比增長 20% 時,你能不能——在業務組合中有什麼可以爭論的嗎?事情更傾向於 disti。

  • And I guess, specifically, in the calendar third quarter, was there a program at the EMS side that drove revenue up sequentially that much?

    而且我想,具體來說,在日曆第三季度,EMS 方面是否有一個計劃可以推動收入連續增長這麼多?

  • I know it's a small part, but just trying to get an understanding of disti and EMS and what's driving the growth there.

    我知道這只是一小部分,但只是試圖了解 disti 和 EMS 以及推動那裡增長的因素。

  • Keith D. Jackson - CEO, President and Director

    Keith D. Jackson - CEO, President and Director

  • Yes, couple of very significant factors.

    是的,有幾個非常重要的因素。

  • One is we have grown significantly model year over model year in -- with customers in areas like cellphones that use distribution and EMS as their primary sources, so basically outgrowing with some of those customers.

    一個是我們的模型年比模型年顯著增長 - 客戶在使用分銷和 EMS 作為主要來源的手機等領域,因此基本上超過了其中一些客戶。

  • Secondly, of course, Fairchild, big impact on that.

    其次,當然是仙童,對那個影響很大。

  • They were much more distribution than ON was, from a legacy perspective, and those numbers flowed through as well.

    從傳統的角度來看,它們比 ON 的分佈要多得多,而且這些數字也流過。

  • So a combination of what was traditionally OEMs moving more into the EMS-disti channel plus Fairchild really have changed the nature of that number.

    因此,傳統 OEM 更多地進入 EMS-disti 渠道加上 Fairchild 的組合確實改變了這個數字的性質。

  • But we track very closely -- continue to track very closely the sell-through, even though we're now on sell-in, and we continue to drive inventories down.

    但是我們非常密切地跟踪 - 繼續非常密切地跟踪銷售,即使我們現在正在銷售,我們繼續降低庫存。

  • So we just don't see any signs of overheating.

    所以我們只是看不到任何過熱的跡象。

  • John William Pitzer - MD, Global Technology Strategist and Global Technology Sector Head

    John William Pitzer - MD, Global Technology Strategist and Global Technology Sector Head

  • And if I could sneak one last quick one in.

    如果我能偷偷溜進去最後一個。

  • Bernard, just on the free cash flow, great to see you raise the guidance for the full year to $700 million.

    伯納德,就自由現金流而言,很高興看到你將全年的指導提高到 7 億美元。

  • But given that we've done 9 months already, it kind of only shows about a $40 million to $45 million free cash flow number for the calendar fourth quarter.

    但鑑於我們已經完成了 9 個月,它僅顯示日曆第四季度的自由現金流量約為 4000 萬至 4500 萬美元。

  • I'm assuming there's a level of conservatism in that.

    我假設其中有一定程度的保守主義。

  • But are there period costs that you can also talk about in Q4 that might be impacting free cash flow for the quarter?

    但是,您是否還可以在第四季度談論可能影響該季度自由現金流的期間成本?

  • Bernard Gutmann - CFO, EVP and Treasurer

    Bernard Gutmann - CFO, EVP and Treasurer

  • Definitely, we are trying to be prudent in the way we forecast.

    當然,我們正在努力謹慎地進行預測。

  • But as I also mentioned, we are going to spend a lot more CapEx in the fourth quarter as compared to what we spent in the first 9 months.

    但正如我也提到的,與前 9 個月的支出相比,我們將在第四季度花費更多的資本支出。

  • Our guidance is $140 million to $160 million in CapEx for the fourth quarter as compared to $90 million in the third quarter.

    我們的指導是第四季度的資本支出為 1.4 億美元至 1.6 億美元,而第三季度為 9000 萬美元。

  • Operator

    Operator

  • Our next question comes from Craig Hettenbach of Morgan Stanley.

    我們的下一個問題來自摩根士丹利的 Craig Hettenbach。

  • Craig Matthew Hettenbach - VP

    Craig Matthew Hettenbach - VP

  • Just had a question on the cycle, particularly lead times.

    只是對周期有疑問,尤其是交貨時間。

  • If I look at how you're managing through what's been tightness across the industry versus some peers, and we've heard of lead times extended further.

    如果我看看你是如何通過與一些同行相比整個行業的緊張來進行管理的,我們聽說交貨時間進一步延長。

  • Just anything that you've been able to do to kind of help maintain the lead times not extending out as much as some others have seen?

    只是您能夠做的任何事情來幫助維持交貨時間,而不是像其他人看到的那樣延長嗎?

  • Keith D. Jackson - CEO, President and Director

    Keith D. Jackson - CEO, President and Director

  • I think the biggest impact this cycle, which is a strong cycle right now, has been working with our distributor partners to make sure that we did not increase inventory there.

    我認為這個週期的最大影響,現在是一個強勁的周期,一直在與我們的分銷商合作夥伴合作,以確保我們沒有增加那裡的庫存。

  • That typically is what has the biggest impact on lead times is over ordering and distribution.

    通常,對交貨時間影響最大的是過度訂購和分銷。

  • Craig Matthew Hettenbach - VP

    Craig Matthew Hettenbach - VP

  • Got it.

    知道了。

  • And then if I can ask a follow-up on the silicon carbide, just -- you mentioned there's a couple of players in this market.

    然後,如果我可以詢問有關碳化矽的後續情況,只是 - 你提到這個市場上有幾個參與者。

  • Can you just talk about your visibility then as you talk to 2018 programs, kind of where you are from a design perspective and how you see that building up over time?

    當你談到 2018 年的項目時,你能談談你的知名度嗎,從設計的角度來看你在哪裡,以及你如何看待隨著時間的推移而建立的?

  • Keith D. Jackson - CEO, President and Director

    Keith D. Jackson - CEO, President and Director

  • Yes.

    是的。

  • As I mentioned, in the industrial sector, we've had offerings for a while and -- so have good visibility on that growth.

    正如我所提到的,在工業領域,我們已經提供了一段時間的產品,因此對這種增長有很好的了解。

  • And our first automotive wins go into production Q3 of 2018.

    我們的第一批汽車產品將於 2018 年第三季度投入生產。

  • Operator

    Operator

  • (Operator Instructions) Our next question comes from Betsy Van Hees of Loop Capital Markets.

    (操作員說明)我們的下一個問題來自 Loop Capital Markets 的 Betsy Van Hees。

  • Betsy Sue Van Hees - SVP

    Betsy Sue Van Hees - SVP

  • Given that you've got Fairchild under your belt for quite a long time now, I was wondering if you could walk us through what typical seasonality is for the quarters, Q2, Q3 and Q4 of the combined companies.

    鑑於您已經擁有 Fairchild 很長一段時間了,我想知道您是否可以向我們介紹合併後公司的季度、Q2、Q3 和 Q4 的典型季節性。

  • It would be very helpful for modeling purposes.

    這對於建模目的非常有幫助。

  • Bernard Gutmann - CFO, EVP and Treasurer

    Bernard Gutmann - CFO, EVP and Treasurer

  • Thank you.

    謝謝你。

  • So the second quarter is typically in that 3% to 4%.

    所以第二季度通常在 3% 到 4% 之間。

  • The third quarter, approximately the same, and then the fourth quarter is down that 3%, just like we talked about earlier.

    第三季度大致相同,然後第四季度下降了 3%,就像我們之前談到的那樣。

  • Betsy Sue Van Hees - SVP

    Betsy Sue Van Hees - SVP

  • That was very helpful.

    這很有幫助。

  • And then, Keith, in the past, you've talked about wireless charging and it's been in your prepared remarks.

    然後,Keith,在過去,您曾談到無線充電,並且已經在您準備好的發言中。

  • And I see you don't mention it this time.

    我看你這次沒有提到它。

  • So I was wondering if you could give us an update on where things stand with wireless charging.

    因此,我想知道您是否可以向我們提供有關無線充電情況的最新信息。

  • Keith D. Jackson - CEO, President and Director

    Keith D. Jackson - CEO, President and Director

  • Sure.

    當然。

  • So wireless charging has been, again, nothing new, much slower to develop than we anticipated.

    因此,無線充電再一次不是什麼新鮮事,發展速度比我們預期的要慢得多。

  • And most of the applications appear to be going for multimode charging, which we've introduced devices for now.

    大多數應用程序似乎都用於多模式充電,我們現在已經推出了設備。

  • The big driver there, we expect to be handsets.

    那裡的大驅動力,我們預計是手機。

  • And we expect to see, again, some improvement here in '18, but for '17, it was not a significant event.

    我們希望在 18 年再次看到一些改進,但對於 17 年來說,這並不是一件大事。

  • Operator

    Operator

  • Ladies and gentlemen, this does conclude our question-and-answer session.

    女士們,先生們,我們的問答環節到此結束。

  • I would now like to turn the call back over to Parag Agarwal for any closing remarks.

    我現在想將電話轉回給 Parag Agarwal 以發表任何結束語。

  • Parag Agarwal - VP of IR

    Parag Agarwal - VP of IR

  • Thank you, everyone, for joining the call today.

    謝謝大家今天加入電話會議。

  • We look forward to seeing you at various events during the quarter.

    我們期待在本季度的各種活動中見到您。

  • Goodbye.

    再見。

  • Operator

    Operator

  • Ladies and gentlemen, thank you for participating in today's conference.

    女士們,先生們,感謝你們參加今天的會議。

  • This concludes today's program.

    今天的節目到此結束。

  • You may all disconnect.

    你們都可以斷開連接。

  • Everyone, have a great day.

    大家,有一個美好的一天。