安森美 (ON) 2018 Q2 法說會逐字稿

Good day, ladies and gentlemen, and welcome to the ON Semiconductor Second Quarter 2018 Earnings Conference Call.

女士們，先生們，美好的一天，歡迎參加安森美半導體 2018 年第二季度收益電話會議。

(Operator Instructions) As a reminder, this conference may be recorded.

（操作員說明）作為提醒，本次會議可能會被錄音。

I would now like to turn the conference over to Parag Agarwal, VP of Corporate Development and Investor Relations.

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。

Thank you, Sonya.

謝謝你，索尼婭。

Good morning, and thank you for joining ON Semiconductor Corporation's Second Quarter 2018 Quarterly Results Conference Call.

早上好，感謝您參加安森美半導體公司 2018 年第二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 second quarter of 2018, will be available on our website approximately 1 hour following this conference call.

該廣播的重播以及我們 2018 年第二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。

And recorded broadcast will be available for approximately 30 days following this conference call.

此次電話會議後大約 30 天內將提供錄製的廣播。

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

今天通話的腳本；與我們的終端市場、業務部門、地域、渠道和股票數量相關的其他信息也發佈在我們的網站上。

Our earnings 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原則財務措施。

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 Investor Relations section.

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指標的對賬在我們的收益發布中，該發佈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 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 results or events 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，可能導致實際結果或事件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 filings 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，在我們提交給證券交易委員會的 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 second quarter of 2018.

我們在 2018 年第二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；除法律要求外，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。

As announced earlier, we will host our 2019 Analyst Day on March 8 in Scottsdale, Arizona.

如前所述，我們將於 3 月 8 日在亞利桑那州斯科茨代爾舉辦 2019 年分析師日。

If you would like to attend the event and haven't received an invitation, please let us know.

如果您想參加此次活動但尚未收到邀請，請告訴我們。

During the third quarter, we will attend Citi technology conference in New York on September 6 and Deutsche Bank technology conference in Las Vegas on September 12.

第三季度，我們將參加 9 月 6 日在紐約舉行的花旗技術會議和 9 月 12 日在拉斯維加斯舉行的德意志銀行技術會議。

Now let me turn it over to Bernard Gutmann, who will provide an overview of second quarter 2018 results.

現在讓我把它交給伯納德·古特曼，他將概述 2018 年第二季度的業績。

Bernard?

伯納德?

Thank you, Parag.

謝謝你，帕拉格。

And thank you, everyone, for joining us today.

感謝大家今天加入我們。

We delivered yet another quarter of strong financial results, which exceeded our guidance and Street consensus on all key metrics.

我們又交付了四分之一的強勁財務業績，超出了我們在所有關鍵指標上的指導和華爾街共識。

Near- to mid-term outlook for our business remains strong, and overhang related to trade policy and tariffs has not had any meaningful impact on our business or outlook.

我們業務的近中期前景依然強勁，與貿易政策和關稅相關的懸而未決對我們的業務或前景沒有任何有意義的影響。

Long-term outlook for our business continues to strengthen, driven by our accelerating momentum in automotive, industrial and server markets.

在我們在汽車、工業和服務器市場加速發展的推動下，我們業務的長期前景繼續增強。

Our margin performance remains strong and continuing expansion in both gross margin and operating margins.

我們的利潤率表現依然強勁，毛利率和營業利潤率持續增長。

Global macroeconomic environment remains stable, and we are seeing strong demand for most geographies and end markets.

全球宏觀經濟環境保持穩定，我們看到大多數地區和終端市場的需求強勁。

The customers are upbeat about near- to mid-term outlook.

客戶對近期至中期前景持樂觀態度。

However, the sustained strong demand has strained the semiconductor industry supply chain.

然而，持續強勁的需求令半導體產業供應鏈緊張。

As we indicated in the previous call, to further accelerate our revenue momentum and margin expansion, we are making prudent investments in our manufacturing infrastructure.

正如我們在上次電話會議中指出的那樣，為了進一步加快我們的收入增長勢頭和利潤率擴張，我們正在對我們的製造基礎設施進行審慎投資。

Now let me provide you additional details on our second quarter 2018 results.

現在讓我為您提供有關我們 2018 年第二季度業績的更多詳細信息。

Total revenue for the second quarter of 2018 was $1,456 million, an increase of 9% as compared to revenue of $1,338 million in the second quarter of 2017.

2018 年第二季度的總收入為 14.56 億美元，比 2017 年第二季度的 13.38 億美元增長 9%。

GAAP net income for the second quarter was $0.35 per diluted share, as compared to $0.22 in the second quarter of 2017.

第二季度的 GAAP 淨收入為每股攤薄收益 0.35 美元，而 2017 年第二季度為 0.22 美元。

Non-GAAP net income for the second quarter was $0.46 per diluted share, as compared to $0.36 in the second quarter of 2017.

第二季度非美國通用會計準則淨利潤為每股攤薄收益 0.46 美元，而 2017 年第二季度為 0.36 美元。

GAAP and non-GAAP gross margin for the second quarter was 38.1%.

第二季度的 GAAP 和非 GAAP 毛利率為 38.1%。

On a GAAP basis, our second quarter gross margin improved by 130 basis points year-over-year.

按公認會計原則計算，我們第二季度的毛利率同比提高了 130 個基點。

And on a non-GAAP basis, gross margin improved by 120 basis points year-over-year.

在非公認會計原則的基礎上，毛利率同比提高了 120 個基點。

This strong gross margin performance was driven by solid operational execution and improving mix results from higher contribution from our automotive, industrial and server business.

這種強勁的毛利率表現是由穩健的運營執行和汽車、工業和服務器業務的更高貢獻帶來的改善組合結果推動的。

Second quarter gross margin was negatively impacted by the rise in certain input costs.

第二季度毛利率受到某些投入成本上升的負面影響。

With anticipated ramp in additional internal wafer capacity towards the end of the year, we would expect to partially -- we expect to partially offset the impact of increased input costs.

隨著預計到年底額外內部晶圓產能的增加，我們預計將部分 - 我們預計部分抵消投入成本增加的影響。

With tailwinds from additional manufacturing synergies, ramp of internal raw wafer capacity and continuing mix improvement, we expect to make strong progress towards our target model in the current year.

憑藉額外的製造協同效應、內部原始晶圓產能的增加和持續的組合改進，我們預計今年將在我們的目標模型方面取得強勁進展。

GAAP operating margin for the second quarter of 2018 was 13.5%, as compared to 11.5% in the second quarter of 2017.

2018 年第二季度的 GAAP 營業利潤率為 13.5%，而 2017 年第二季度為 11.5%。

Our non-GAAP operating margin for the second quarter of 2018 was 16.3%, an increase of approximately 160 basis points over 14.7% in the second quarter of 2017.

我們 2018 年第二季度的非公認會計原則營業利潤率為 16.3%，比 2017 年第二季度的 14.7% 增加了約 160 個基點。

On a year-over-year revenue increase of 9% for the second quarter of 2018, our non-GAAP operating income increased by 21%.

在 2018 年第二季度收入同比增長 9% 的情況下，我們的非公認會計原則營業收入增長了 21%。

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

這種強勁的營業收入表現證明了我們運營模式的槓桿作用和實力。

GAAP operating expenses for the second quarter were $358 million, as compared to $338 million for the second quarter of 2017.

第二季度的 GAAP 運營費用為 3.58 億美元，而 2017 年第二季度為 3.38 億美元。

Non-GAAP operating expenses for the second quarter were $318 million, as compared to $297 million in the second quarter of 2017.

第二季度非美國通用會計準則運營費用為 3.18 億美元，而 2017 年第二季度為 2.97 億美元。

We expect non-GAAP operating expenses as a percent of revenue to decline for the remainder of the year, and we expect to make strong progress in 2018 towards our target non-GAAP operating expense intensity of 21%.

我們預計非 GAAP 運營費用佔收入的百分比將在今年剩餘時間內下降，我們預計 2018 年將在實現非 GAAP 運營費用強度 21% 的目標方面取得強勁進展。

Second quarter free cash flow was $117 million, and operating cash flow was $270 million.

第二季度自由現金流為 1.17 億美元，經營現金流為 2.7 億美元。

Capital expenditures during the second quarter were $153 million, which equate to capital intensity of 10%.

第二季度的資本支出為 1.53 億美元，相當於 10% 的資本密集度。

Recall that to meet accelerating demand for our products and to mitigate the impact of steep rise in prices of raw wafers, we expect to -- a higher level of capital intensity in the current and next year.

回想一下，為了滿足對我們產品的不斷增長的需求並減輕原始晶圓價格急劇上漲的影響，我們預計當前和明年的資本密集度會更高。

We continued to de-lever our balance sheet, and in the second quarter, we used $80 million to pay down our debt.

我們繼續去槓桿化我們的資產負債表，在第二季度，我們用了 8000 萬美元來償還債務。

We exited the second quarter of 2018 with cash and cash equivalents of $850 million, as compared to $925 million in the first quarter of 2018.

2018 年第二季度結束時，我們的現金和現金等價物為 8.5 億美元，而 2018 年第一季度為 9.25 億美元。

We used $40 million cash to repurchase 1.7 million shares of our stock.

我們用 4000 萬美元現金回購了 170 萬股我們的股票。

At the end of the second quarter, days of inventory on hand were 122 days, down by 1 day as compared to 123 days in the first quarter.

二季度末，庫存天數122天，比一季度的123天減少1天。

Inventory increased in absolute terms in the second quarter, as compared to the first quarter.

與第一季度相比，第二季度庫存絕對值增加。

As part of the increase -- a part of the increase was driven by strategic build of inventory of certain raw materials.

作為增長的一部分——增長的一部分是由某些原材料庫存的戰略建設推動的。

As I indicated earlier, the semiconductor supply chain is strained, and we're making prudent investments to ensure continuity of timely supply of our products to our customers.

正如我之前所說，半導體供應鏈緊張，我們正在謹慎投資，以確保向客戶及時供應產品的連續性。

We intend to continue to build strategic inventory of raw material until supply stabilization -- supply situation stabilizes.

我們打算繼續建立原材料的戰略庫存，直到供應穩定——供應形勢穩定。

We expect our internal inventories to continue to decline in terms of days in the third quarter.

我們預計第三季度我們的內部庫存天數將繼續下降。

Distribution inventory declined quarter-over-quarter in the second quarter.

第二季度分銷庫存環比下降。

We expect distribution inventories to remain within our normal range of 11 to 13 weeks in the near term.

我們預計短期內分銷庫存將保持在我們正常的 11 至 13 週範圍內。

To mitigate the risk of excessive inventory in the channel, we are proactively managing inventory in the distribution channel.

為了降低渠道庫存過多的風險，我們正在積極管理分銷渠道中的庫存。

We have implemented systems to ensure that distributors don't carry more inventory than is needed to support 11 to 13 weeks of resales.

我們已經實施了一些系統，以確保分銷商的庫存不會超過支持 11 到 13 周轉售所需的庫存。

For the second quarter of 2018, our lead times were up quarter-over-quarter.

2018 年第二季度，我們的交貨時間環比增長。

Our factory utilization for the second quarter was down quarter-over-quarter.

我們第二季度的工廠利用率環比下降。

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

現在讓我向您介紹我們業務部門的最新表現，首先是 Power Solutions Group 或 PSG。

Revenue for PSG for the second quarter was $748 million.

PSG 第二季度的收入為 7.48 億美元。

Revenue for the Analog Solutions Group for the second quarter of 2018 was $513 million.

模擬解決方案集團 2018 年第二季度的收入為 5.13 億美元。

And revenue for the Intelligent Sensing Group, formerly known as Image Sensor Group, was $195 million.

智能傳感集團（前身為圖像傳感器集團）的收入為 1.95 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？

Thanks, Bernard.

謝謝，伯納德。

The second quarter of 2018 was yet another strong quarter for ON Semiconductor.

2018 年第二季度是安森美半導體又一個強勁的季度。

We delivered strong revenue growth and robust margin expansion, which culminated in strong earnings performance for the company.

我們實現了強勁的收入增長和強勁的利潤率擴張，最終為公司帶來了強勁的盈利表現。

Our momentum continues to accelerate, driven by strong traction of our products in automotive, industrial and server markets.

在我們的產品在汽車、工業和服務器市場的強大牽引力的推動下，我們的發展勢頭繼續加快。

Our design win pipeline continues to expand as customers increasingly engage with us for power, analog and sensor semiconductor solutions for the most demanding applications.

隨著客戶越來越多地與我們合作，為要求最苛刻的應用提供電源、模擬和傳感器半導體解決方案，我們的設計贏得渠道繼續擴大。

We continue to strengthen our position as a key provider of enabling technologies for newly emerging and disruptive applications in automotive and industrial end markets.

我們將繼續鞏固我們作為汽車和工業終端市場新興和顛覆性應用支持技術的主要供應商的地位。

With tailwinds from increasingly favorable macroeconomic conditions and strong momentum in our business, we continue to make strong progress towards our target financial model.

得益於日益有利的宏觀經濟條件和強勁的業務發展勢頭，我們繼續朝著我們的目標財務模式邁進。

While we are benefiting from our leadership in key segments of automotive, industrial and server markets, overall business conditions remain favorable and demand continues to be strong across most end markets.

雖然我們受益於我們在汽車、工業和服務器市場關鍵領域的領先地位，但整體業務狀況仍然良好，大多數終端市場的需求繼續強勁。

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。

Overhang related to trade policy and tariffs hasn't impacted the demand environment in any meaningful manner, and customers are upbeat about near- to mid-term outlook for their businesses.

與貿易政策和關稅相關的過剩並未對需求環境產生任何有意義的影響，客戶對其業務的近期至中期前景持樂觀態度。

As I have indicated in recent earnings calls, 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.

正如我在最近的財報電話會議中所指出的那樣，我們今天的業務是由增長最快的半導體終端市場中可持續的長期增長驅動力驅動的，而不是幾年前受到宏觀經濟和行業周期性的驅動。

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

通過過去多年對汽車和工業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。

Customers are increasingly relying on us as a key provider of enabling technologies for newly emerging and disruptive applications in automotive and industrial end markets.

客戶越來越依賴我們作為支持技術的主要供應商，為汽車和工業終端市場的新興和顛覆性應用提供支持。

Along with strong revenue momentum, our execution on the operations front has been outstanding.

除了強勁的收入勢頭外，我們在運營方面的執行也非常出色。

Our operating model has shown strong operating leverage.

我們的經營模式顯示出強大的經營槓桿。

As Bernard mentioned earlier, on a year-over-year revenue increase of 9% for the second quarter, our non-GAAP operating income increased by 21%.

正如伯納德之前提到的，在第二季度收入同比增長 9% 的情況下，我們的非美國通用會計準則營業收入增長了 21%。

Despite increases in certain input costs, which has negatively impacted the pace of our margin expansion, our margin drivers remain intact.

儘管某些投入成本的增加對我們的利潤率擴張速度產生了負面影響，但我們的利潤率驅動因素仍然完好無損。

With the ramp of our internal raw wafer capacity later this year, we should be able to partially offset the increase in input costs.

隨著今年晚些時候我們內部原始晶圓產能的增加，我們應該能夠部分抵消投入成本的增加。

At the same time, mix shifts towards margin-rich automotive and industrial end markets should drive additional margin expansion.

與此同時，向利潤豐厚的汽車和工業終端市場的組合轉變應會推動利潤進一步擴大。

Now I'll provide details of the progress in our various end markets for the second quarter of 2018.

現在，我將詳細介紹 2018 年第二季度我們各個終端市場的進展情況。

Revenue for the automotive market in the second quarter was $454 million and represented 31% of our revenue in the second quarter.

第二季度汽車市場的收入為 4.54 億美元，占我們第二季度收入的 31%。

Second quarter automotive revenue grew by an impressive 10% year-over-year.

第二季度汽車收入同比增長 10%，令人印象深刻。

For the second quarter, we again saw strong, broad-based demand for most product lines.

第二季度，我們再次看到對大多數產品線的強勁、廣泛的需求。

And our momentum in the automotive market continues to accelerate, driven by robust design win pipeline and leadership in the fastest-growing segments in the automotive market.

在強大的設計贏得渠道和在汽車市場增長最快的細分市場的領導地位的推動下，我們在汽車市場的發展勢頭繼續加快。

During the second quarter, we saw strong demand for image sensors for ADAS applications.

在第二季度，我們看到用於 ADAS 應用的圖像傳感器需求強勁。

Our traction in ADAS image sensors continues to accelerate.

我們在 ADAS 圖像傳感器方面的吸引力繼續加快。

With a complete line of image sensors, including 1, 2 and 8 megapixels, we are the only provider of a complete range of pixel densities on a single platform for the next-generation ADAS and autonomous driving applications.

憑藉包括 1、2 和 8 兆像素在內的全系列圖像傳感器，我們是唯一一家在單一平台上為下一代 ADAS 和自動駕駛應用提供全系列像素密度的供應商。

We believe that a complete line of image sensors on a single platform provides us with significant competitive advantage, and we continue working to extend our technology lead over our competitors.

我們相信，單一平台上的完整圖像傳感器系列為我們提供了顯著的競爭優勢，我們將繼續努力擴大我們對競爭對手的技術領先優勢。

Demand for power products for automotive applications continues to grow.

汽車應用對電源產品的需求持續增長。

With one of the broadest power portfolios in the automotive applications, we continue to see strong growth in our power-related revenue for automotive applications.

憑藉汽車應用中最廣泛的電源組合之一，我們繼續看到汽車應用的電源相關收入強勁增長。

Other growth drivers for the second quarter automotive revenue included power management for ADAS and instrument clusters, LED lighting, start-stop alternators and 48-volt systems.

第二季度汽車收入的其他增長動力包括 ADAS 和儀表組的電源管理、LED 照明、啟停交流發電機和 48 伏系統。

Also, we are seeing strong growth for our silicon-based power products in the EV/HEV market.

此外，我們看到我們的矽基電源產品在 EV/HEV 市場上的強勁增長。

Our silicon carbide development remains on track, and we expect to see silicon carbide-related revenue from the automotive market in the second half of this year.

我們的碳化矽發展仍處於正軌，我們預計今年下半年汽車市場將出現碳化矽相關收入。

Recently we announced a formal launch of our silicon carbide diodes for the automotive market.

最近，我們宣布正式推出面向汽車市場的碳化矽二極管。

Our silicon carbide-related design win pipeline is expanding in an impressive rate.

我們與碳化矽相關的設計中標管道正在以驚人的速度擴展。

We are well positioned to benefit from the transition to 48-volt electric systems from 12 volt in automobiles.

我們處於有利位置，可以從汽車從 12 伏到 48 伏電氣系統的過渡中受益。

Due to proliferation of electric systems such as ADAS, infotainment, connectivity et cetera, the 12-volt automotive electrical system is being burdened by technology.

由於 ADAS、信息娛樂、連接等電氣系統的普及，12 伏汽車電氣系統正承受著技術的負擔。

Furthermore, due to ever tightening global CO2 emission regulations and increased demand for improved fuel economy, light vehicles are in need of more power as electromechanical systems transition to highly efficient, full electric systems.

此外，由於全球二氧化碳排放法規不斷收緊以及對提高燃油經濟性的需求增加，隨著機電系統向高效全電動系統過渡，輕型車輛需要更多動力。

The need for higher power in light vehicles is driving transition to 48-volt electric systems.

輕型車輛對更高功率的需求正在推動向 48 伏電氣系統的過渡。

ON Semiconductor offers an expanding portfolio of 48-volt products, including a full line of MOSFETs, integrated power modules, current sense amplifiers, gate drivers and eFuse devices.

安森美半導體提供不斷擴大的 48 伏產品組合，包括全系列 MOSFET、集成電源模塊、電流檢測放大器、柵極驅動器和 eFuse 器件。

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

汽車終端市場第三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 $402 million in the second quarter.

包括軍事、航空航天和醫療在內的工業終端市場在第二季度貢獻了 4.02 億美元的收入。

The industrial end market represented 28% of our revenue in the second quarter.

工業終端市場占我們第二季度收入的 28%。

Our second quarter industrial revenue grew by a solid 14% year-over-year.

我們第二季度的工業收入同比增長了 14%。

And strength in the industrial market was very broad-based, with all the subsegments posting robust year-over-year growth.

工業市場的實力基礎非常廣泛，所有細分市場都實現了強勁的同比增長。

With a broad range of power products for a complete spectrum of voltages, starting from low voltage to high voltage, we have one of the most comprehensive portfolios of power devices and modules.

憑藉適用於從低壓到高壓的完整電壓範圍的廣泛電源產品，我們擁有最全面的電源設備和模塊產品組合之一。

We have clearly emerged as a credible alternative to the current leader in power semiconductor market, and consequently customers are engaging with us at an increasing rate.

顯然，我們已經成為功率半導體市場當前領導者的可靠替代品，因此客戶與我們的互動率越來越高。

We expect the demand for our power products for the industrial market to continue to accelerate.

我們預計工業市場對我們的電源產品的需求將繼續加速。

While the EV/HEV market is a key driver for our automotive business, we are also seeing complementary growth in our IGBT business driven by charging stations for EV/HEV.

雖然 EV/HEV 市場是我們汽車業務的主要驅動力，但我們的 IGBT 業務也看到了由 EV/HEV 充電站推動的互補性增長。

Along with our power products, machine vision is rapidly emerging as a key driver of our industrial revenue.

與我們的電源產品一起，機器視覺正迅速成為我們工業收入的主要驅動力。

As we have indicated earlier, according to independent research firms, ON Semiconductor is the leader in image sensors for industrial applications.

正如我們之前指出的，根據獨立研究公司的說法，安森美半導體是工業應用圖像傳感器的領導者。

We continue to leverage our expertise in the automotive market to address most demanding applications in industrial and machine vision markets.

我們繼續利用我們在汽車市場的專業知識來解決工業和機器視覺市場中最苛刻的應用。

Both of these markets are driven by artificial intelligence; and face similar challenges such as low-light conditions, high dynamic range and harsh operating environments.

這兩個市場都是由人工智能驅動的。並面臨類似的挑戰，例如低光照條件、高動態範圍和惡劣的操作環境。

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

工業終端市場第三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 $249 million in the second quarter.

包括網絡和無線在內的通信終端市場在第二季度貢獻了 2.49 億美元的收入。

The communications end market represented 17% of our revenue in the second quarter.

通信終端市場占我們第二季度收入的 17%。

Second quarter communications revenue declined by 3% year-over-year due to weakness in the smartphone market.

由於智能手機市場疲軟，第二季度通信收入同比下降 3%。

While smartphone market has slowed down during the last few quarters, our content in smartphones has been increasing with every generation of new devices.

雖然智能手機市場在過去幾個季度放緩，但隨著每一代新設備的出現，我們在智能手機中的內容一直在增加。

We expect continued growth in our content on new smartphone devices in the near to midterm.

我們預計近期到中期我們在新智能手機設備上的內容將繼續增長。

Revenue in the third quarter for the communications end market is expected to be up quarter-over-quarter due to normal seasonality, increased content and a launch of new device models.

由於正常的季節性、內容增加和新設備型號的推出，通信終端市場第三季度的收入預計將環比增長。

The computing end market contributed $147 million in the second quarter.

計算終端市場在第二季度貢獻了 1.47 億美元。

The computing end market represented 10% of our revenue in the second quarter.

計算終端市場占我們第二季度收入的 10%。

Second quarter computing revenue grew by 17% year-over-year.

第二季度計算收入同比增長 17%。

The year-over-year growth was driven primarily by a ramp in our cloud and server business.

同比增長主要是由我們的雲和服務器業務的增長推動的。

We are seeing strong traction in our server business.

我們在服務器業務中看到了強大的吸引力。

We are engaged with leading cloud and server players, and we are working with leading CPU providers on their next-generation platforms.

我們與領先的雲和服務器廠商合作，我們正在與領先的 CPU 供應商合作開發他們的下一代平台。

Our engagement with customers in cloud servers and server ecosystem continues to grow.

我們在雲服務器和服務器生態系統中與客戶的互動持續增長。

We expect continued growth in our server business in the near to midterm.

我們預計我們的服務器業務將在近期至中期繼續增長。

In addition to on-board power management, we are seeing acceleration in demand for our mid-voltage and high-voltage power products for server power supplies.

除了板載電源管理外，我們還看到對用於服務器電源的中壓和高壓電源產品的需求正在加速增長。

Revenue in the third quarter for the computing end market is expected to be up quarter-over-quarter due to normal seasonality and a continuing ramp in the server business.

由於正常的季節性和服務器業務的持續增長，計算終端市場第三季度的收入預計將環比增長。

The consumer end market contributed $203 million in the second quarter.

消費端市場在第二季度貢獻了 2.03 億美元。

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

消費者終端市場占我們第二季度收入的 14%。

Second quarter 2018 consumer revenue was up 7%, as compared to consumer revenue in the second quarter of 2017.

與 2017 年第二季度的消費者收入相比，2018 年第二季度的消費者收入增長了 7%。

Strength in white goods was a key driver of year-over-year growth in the consumer end market in the second quarter.

白色家電的強勢是第二季度消費終端市場同比增長的關鍵驅動力。

Revenue in the third quarter for the consumer end market is expected to be up quarter-over-quarter due to normal seasonality.

由於正常的季節性因素，預計第三季度消費者終端市場的收入將環比增長。

In summary.

總之。

Demand for our products is accelerating, driven by strong customer acceptance of our power, analog and sensor products for automotive, industrial and server end markets.

由於客戶對我們用於汽車、工業和服務器終端市場的電源、模擬和傳感器產品的強烈認可，對我們產品的需求正在加速增長。

In face of strong demand environment and constrained supply conditions in the semiconductor industry, our execution remains solid on all fronts.

面對半導體行業強勁的需求環境和有限的供應條件，我們的執行在各個方面都保持穩健。

We're investing to increase our manufacturing capacity and further strengthen our industry-leading cost structure.

我們正在投資以提高我們的製造能力並進一步加強我們行業領先的成本結構。

We have established leadership in highly differentiated power, analog and sensor semiconductor solutions.

我們在高度差異化的電源、模擬和傳感器半導體解決方案方面確立了領導地位。

Customers are increasingly relying on us as a key provider of enabling technologies for newly emerging and disruptive applications in automotive and industrial end markets.

客戶越來越依賴我們作為支持技術的主要供應商，為汽車和工業終端市場的新興和顛覆性應用提供支持。

Along with strong revenue performance, we are driving significant margin expansion.

隨著強勁的收入表現，我們正在推動利潤率的顯著增長。

We continue to make solid progress towards our target financial model.

我們繼續朝著我們的目標財務模型邁進。

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?

Thank you, Keith.

謝謝你，基思。

Based on product booking trends, backlog levels and estimated turn levels, we anticipate that total ON Semiconductor revenues will be $1.485 billion to $1.535 billion in the third quarter of 2018.

根據產品預訂趨勢、積壓水平和預計周轉水平，我們預計安森美半導體在 2018 年第三季度的總收入將達到 14.85 億美元至 15.35 億美元。

For the third quarter of 2018, we expect GAAP gross margin to be in the range of 38% to 39% and non-GAAP gross margin in the range of 38.1% to 39.1%.

對於 2018 年第三季度，我們預計 GAAP 毛利率在 38% 至 39% 之間，非 GAAP 毛利率在 38.1% 至 39.1% 之間。

Factory utilization in the third quarter is likely to be flat, as compared to that in the second quarter.

與第二季度相比，第三季度的工廠利用率可能持平。

We expect total GAAP operating expenses of $348 million to $366 million.

我們預計 GAAP 總運營費用為 3.48 億美元至 3.66 億美元。

Our GAAP operating expenses include the amortization of intangibles, restructuring, asset impairments and other charges, which are expected to be $29 million to $33 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，預計為 2900 萬至 3300 萬美元。

We expect total non-GAAP operating expenses of $319 million to $333 million.

我們預計非公認會計原則的總運營費用為 3.19 億美元至 3.33 億美元。

We expect our non-GAAP operating expenses as a percentage of revenue to decline from current levels during the remainder of the year.

我們預計我們的非公認會計原則運營費用佔收入的百分比將在今年剩餘時間內從當前水平下降。

We anticipate third quarter GAAP net other income and expense, including interest expense, will be $32 million to $35 million, which includes noncash interest expense of $9 million to $10 million.

我們預計第三季度 GAAP 其他淨收入和支出（包括利息支出）將為 3200 萬美元至 3500 萬美元，其中包括 900 萬美元至 1000 萬美元的非現金利息支出。

We anticipate our non-GAAP net other income and expenses, including interest expense, will be in the $23 million to $25 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 2300 萬美元至 2500 萬美元之間。

Cash paid for income taxes in the third quarter of 2018 is expected to be $11 million to $15 million.

2018 年第三季度為所得稅支付的現金預計為 1100 萬至 1500 萬美元。

We expect our 2018 cash tax rate to be lower than 10%.

我們預計 2018 年的現金稅率將低於 10%。

We expect total capital expenditures of $120 million to $140 million in the third quarter of 2018.

我們預計 2018 年第三季度的總資本支出為 1.2 億美元至 1.4 億美元。

We also expect share-based compensation of $19 million to $21 million in the third quarter of 2018, 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 2018 年第三季度的股票薪酬為 1900 萬美元至 2100 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 third quarter of 2018 is expected to be in the 445 million to 447 million shares based on current stock price.

根據當前股價計算，我們 2018 年第三季度的 GAAP 稀釋後股票數量預計在 4.45 億至 4.47 億股之間。

Our non-GAAP diluted share count for the third quarter of 2018 is expected to be 432 million shares based on the current stock price.

根據當前股價，我們 2018 年第三季度的非公認會計原則攤薄後股票數量預計為 4.32 億股。

Further details on share count and earnings per share calculations are provided regularly in our quarterly and annual reports on Form 10-Q and Form 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。

For the full year of 2018, we expect to generate free cash flow of approximately $800 million.

對於 2018 年全年，我們預計將產生約 8 億美元的自由現金流。

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.

謝謝你。

And Sonya, please open up the lines for questions.

索尼婭，請打開問題的線路。

(Operator Instructions) Our first question comes from 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。

Keith, first one for you.

基思，第一個給你。

At a high level, demand sounds strong across the board.

在高水平上，需求聽起來全面強勁。

And I know you talked about the secular drivers versus the cyclical drivers, but when you're putting this much CapEx to work, how do you think about the magnitude of capacity you want to bring online and the duration of the elevated CapEx versus an industry that is cyclical and a macroeconomic expansion that a lot of people will argue is long in the tooth?

而且我知道您談到了長期驅動因素與週期性驅動因素，但是當您將這麼多的資本支出投入工作時，您如何看待您想要上線的容量大小以及資本支出與行業相比的持續時間很多人會認為這是周期性的宏觀經濟擴張，這是長期存在的嗎？

Understood.

明白了。

Yes, we have been investing specifically to match the growth we've had.

是的，我們一直在專門投資以匹配我們的增長。

For the last couple years, looking in the high single digits, low double digits has put a strain in our overall capacity.

在過去的幾年裡，從高個位數來看，低兩位數給我們的整體能力帶來了壓力。

And frankly, we're looking at economical ways to extend that capacity.

坦率地說，我們正在尋找擴展這種能力的經濟方法。

So we're not getting ahead of things.

所以我們並沒有走在前面。

We're certainly not putting capacity in place that we expect to be idling.

我們當然沒有將我們期望閒置的產能投入到位。

The other piece of it is all of the work we've been doing is going to lead to further cost reductions over time, with more automation as we've been investing.

另一部分是我們一直在做的所有工作，隨著時間的推移，隨著我們一直在投資，我們將進一步降低成本，並實現更多的自動化。

So net-net, we're expecting at least another year of high single-digit growth.

所以淨淨值，我們預計至少還有一年的高個位數增長。

We're investing for that.

我們正在為此進行投資。

And then we should return to a much more normal 6% to 7% growth.

然後我們應該恢復到更正常的 6% 到 7% 的增長。

Great.

偉大的。

And then as my follow-up, one for you, Bernard.

然後作為我的後續行動，給你一個，伯納德。

On the OpEx side of things, you talked about the OpEx intensity falling through the back half of the year.

在運營支出方面，您談到了下半年的運營支出強度下降。

Obviously we can do the math on what you just guided to in the third quarter, but in the fourth quarter, typically your revenues go down a little bit seasonally.

顯然，我們可以根據您剛剛在第三季度的指導進行數學計算，但在第四季度，您的收入通常會隨著季節的變化而下降。

Are -- is your OpEx guidance that you're actually going to be able to get to better OpEx leverage even into the fourth quarter?

是否——即使到第四季度，您實際上能夠獲得更好的 OpEx 槓桿率的 OpEx 指導？

And then how should we think about next year on that same metric?

然後我們應該如何考慮明年在同樣的指標上？

The only clarification there, thanks, Ross, is on the fourth quarter we have extra -- a few extra days.

唯一的澄清，謝謝，羅斯，在第四季度我們有額外的 - 額外的幾天。

So that is -- that's something that will have to play into the equation, but nevertheless we still expect to be coming down from the 22% level we had last year and the 21.8% we had in the first half.

所以這就是 - 這是必須在等式中發揮作用的東西，但我們仍然預計會從去年的 22% 水平和上半年的 21.8% 下降。

And our next question comes from Chris Danely of Citi.

我們的下一個問題來自花旗銀行的 Chris Danely。

Just a follow up on OpEx.

只是對 OpEx 的跟進。

In Q1, it was at the high end of the range.

在第一季度，它處於該範圍的高端。

You guided for in this quarter, I think it was, either the high end of the range or above it.

你在本季度指導，我認為它是范圍的高端或高於它。

So can you just talk about why it's kind of missed the middle of expectations?

所以你能談談為什麼它有點錯過了預期的中間嗎？

Or I guess, what's gone wrong, so far?

或者我猜，到目前為止出了什麼問題？

And what you're doing to fix it going forward.

以及你正在做什麼來解決它。

So we have been within the range.

所以我們一直在範圍內。

We were also slightly below the high end of the range but still within the range in the second quarter.

我們也略低於該範圍的高端，但仍在第二季度的範圍內。

We have targeted to increase our investments in R&D in certain areas that we have talked about, things like silicon carbide, lidar.

我們的目標是在我們討論過的某些領域增加對研發的投資，比如碳化矽、激光雷達。

All of the power discrete stuff has -- we have decided to invest a little bit more in that.

所有功率離散的東西都有——我們決定在這方面投入更多。

We have also had some higher litigation costs.

我們也有一些較高的訴訟費用。

So in the third quarter, we expect in absolute dollars to still go up, although as a percent of revenue we'll be coming down.

因此，在第三季度，我們預計絕對美元仍會上漲，儘管佔收入的百分比會下降。

So those are the main causes.

所以這些是主要原因。

It's mostly R&D investments.

主要是研發投資。

Yes.

是的。

And then on the tightness in the industry, can you just talk about what your lead times are doing or what lead times are doing at the competitors as well?

然後關於行業的緊張，你能談談你的交貨時間在做什麼，或者競爭對手的交貨時間也在做什麼？

We believe lead times are extended across the board everywhere.

我們相信交貨時間在任何地方都會全面延長。

We did have a slight increase ourselves in the last quarter.

在上個季度，我們自己確實略有增加。

I'm not sure that, that will continue to expand.

我不確定，這將繼續擴大。

I expect that it will start to normalize quickly as capital expenditures finally catch up in the second half.

我預計隨著資本支出最終在下半年趕上，它將開始迅速恢復正常。

Keith, just a clarification.

基思，只是一個澄清。

Can you just tell us what the lead times were and what is normal?

你能告訴我們交貨時間是多少，什麼是正常的？

So normal is kind of low teens, and we are above that at this time.

所以正常是一種低齡的青少年，而我們現在高於這個水平。

And our next question comes from Vivek Arya of Bank of America Merrill Lynch.

我們的下一個問題來自美銀美林的 Vivek Arya。

Keith, on the wafer capacity investment, is this something that helps you meet your 40% gross margin target?

基思，關於晶圓產能投資，這是否可以幫助您實現 40% 的毛利率目標？

Or can you actually see that investment driving a beating of that target?

或者你真的能看到投資推動了這個目標的突破嗎？

I think we sort of know what the cost is of all these investments, but what and when and how much is the benefit on that we should see?

我認為我們知道所有這些投資的成本是多少，但是我們應該看到什麼、何時以及有多少收益？

Yes, on the actual wafer growing side it's offsetting a lot of increased costs, but frankly, we need that to handle increased demands right now.

是的，在實際的晶圓生長方面，它抵消了很多增加的成本，但坦率地說，我們現在需要它來處理增加的需求。

So it's kind of moderating the overall cost in the supply chain, as opposed to offering real reductions in total because again we need all the capacity there.

因此，它在某種程度上緩和了供應鏈中的總體成本，而不是提供真正的總成本降低，因為我們再次需要那裡的所有容量。

I see.

我懂了。

And then when the year started, your top line growth was expected to be about 3% to 4%.

然後在今年開始時，您的收入增長預計約為 3% 到 4%。

You're growing closer to 9%.

你正在增長接近 9%。

Is this macro?

這是宏嗎？

Is this your specific product cycle?

這是您的特定產品週期嗎？

And just how is your visibility to maintain this kind of growth over the next handful of quarters?

在接下來的幾個季度中，您如何保持這種增長？

Yes, we're very encouraged.

是的，我們很受鼓舞。

And it's being driven by specific high-growth applications in our target markets, so it's not just a strong economy.

它是由我們目標市場中特定的高增長應用驅動的，因此它不僅僅是一個強勁的經濟體。

It's, frankly, the acceleration of electronic usage in automotive for safety and automation; in industrial, for power savings and new applications to support things like charging stations in the marketplace.

坦率地說，這是為了安全和自動化而加速汽車中電子設備的使用；在工業領域，用於節能和新應用，以支持市場上的充電站等事物。

So very encouraged.

所以很受鼓舞。

It's a design win pipeline that is accelerating faster than we expected and not just a strong economy.

這是一個設計勝利的管道，其速度比我們預期的要快，而不僅僅是強勁的經濟。

And just one last quick one, clarification.

最後一個快速的，澄清。

Bernard, can you remind us how much is left in the buybacks?

伯納德，你能提醒我們回購還剩下多少嗎？

And what would be the trigger to become more aggressive on the buyback side?

在回購方面變得更加激進的觸發因素是什麼？

So the buyback, we have it for about $1 billion.

因此，我們以大約 10 億美元的價格進行回購。

We have used -- we have still around $600-plus available.

我們已經使用了——我們還有大約 600 多美元的可用空間。

We did $40 million in the second quarter and which represented about 1.7 million shares.

我們在第二季度做了 4000 萬美元，代表了大約 170 萬股。

Now we are still also paying down our debt.

現在我們還在償還我們的債務。

As we mentioned in the prepared remarks, we did reduce our debt by about $80 million.

正如我們在準備好的評論中提到的那樣，我們確實減少了大約 8000 萬美元的債務。

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。

Is there a way to maybe clarify how much margin pressure you're seeing right now from the input cost or profitability that you're leaving on the table that will begin to mitigate in the second half of the year?

有沒有辦法澄清你現在從投入成本或盈利能力中看到的利潤壓力有多大，而這些壓力或盈利能力將在今年下半年開始緩解？

We've had price increases on substrates from 25% to 40% increase year-over-year and in the lead frame area around 15% year-over-year.

我們的基板價格同比上漲 25% 至 40%，引線框架區域的價格同比上漲約 15%。

So -- now those are very significant pressures.

所以——現在這些壓力非常大。

We've been able to partially offset that with some good pricing on our side not having the declines that we normally see there.

我們已經能夠通過我們方面的一些良好定價來部分抵消這一點，而不會出現我們通常在那裡看到的下降。

Being able to maintain that has partially offset that.

能夠保持這一點已經部分抵消了這一點。

Okay.

好的。

And then maybe a question for you, Bernard.

然後也許是你的問題，伯納德。

Getting to the $800 million of free cash flow for the year requires a big step-up into the second half.

達到今年 8 億美元的自由現金流需要在下半年大幅提升。

Maybe if you could just speak to the components of the acceleration in free cash flow, knowing it's typically a little bit back-end weighted.

也許如果你能談談自由現金流加速的組成部分，知道它通常有點後端加權。

Yes, Shawn.

是的，肖恩。

Thank you.

謝謝你。

Definitely, historical pattern shows us that the free cash flow generation is substantially back-end loaded, and we expect that, that will -- that pattern will continue.

毫無疑問，歷史模式向我們表明，自由現金流的產生基本上是後端加載的，我們預計，這種模式將繼續下去。

The -- we did step-up our CapEx in the second quarter even beyond where our 8% to 9% model is, so expect that will be normalizing to that 8% to 9%.

- 我們確實在第二季度提高了我們的資本支出，甚至超過了我們 8% 到 9% 的模型，因此預計這將正常化到 8% 到 9%。

And we have some investments, as we talked about, in working capital.

正如我們所說，我們在營運資金方面有一些投資。

Some of those will be slowing down in the third and fourth quarter, but we expect the operational performance will also help us lift those numbers.

其中一些將在第三和第四季度放緩，但我們預計運營業績也將幫助我們提高這些數字。

Our next question comes from Tristan Gerra of Baird.

我們的下一個問題來自 Baird 的 Tristan Gerra。

Just wanted to follow up on the earlier question.

只是想跟進前面的問題。

So you mentioned price increases in substrates and wafers.

所以你提到了基板和晶圓的價格上漲。

What was the [bad] impact on your gross margin?

對您的毛利率有什麼[壞]影響？

And what will be the percentage change in your own ASPs embedded in the Q3 guidance?

第三季度指南中嵌入的您自己的 ASP 的百分比變化是多少？

So take them in reverse order.

所以以相反的順序取它們。

Our ASP expectations in the guidance is relatively benign compared to normal, not increasing, still a slight decline but not very much.

我們在指導中的 ASP 預期與正常情況相比是相對溫和的，沒有增加，仍然有小幅下降但不是很多。

As far as contributions or margin pressure in our results, the raw materials side of the equation represents roughly 40% or more of the costs for the products.

就我們結果中的貢獻或利潤壓力而言，等式的原材料方面約佔產品成本的 40% 或更多。

So if you use the percentage that I gave you, you get a rough idea of how much pressure there was.

因此，如果您使用我給您的百分比，您就會大致了解壓力有多大。

Okay, great.

好，太棒了。

And then could you tell us, unless I missed it, what the point of sale was sequentially in Q2?

然後你能告訴我們，除非我錯過了，否則第二季度的銷售點是什麼？

And what is the percentage change embedded in your Q3 guidance?

Q3 指導中嵌入的百分比變化是多少？

In resales?

在轉售中？

Tristan, can you repeat your question, please?

特里斯坦，你能重複一下你的問題嗎？

I was just looking at the percentage change in point of sales, so the sell-through, of Q2 sequentially.

我只是在查看銷售點的百分比變化，即第二季度的銷售量。

And what...

還有什麼...

Okay.

好的。

So the -- yes, the resales in the [channel] were substantially up, and that allowed us to reduce the number of weeks of inventory.

所以——是的，[渠道]中的轉售量大幅上升，這使我們能夠減少庫存週數。

It was definitely higher up even than our own internal revenue printout.

它甚至比我們自己的內部收入打印輸出還要高。

And for Q3?

第三季度呢？

We expect it to be in -- up and about seasonal.

我們預計它會在 - 上升和季節性。

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。

The first question is on the communications space.

第一個問題是關於通信空間的。

It looks like that came in a little better than your expectations.

看起來這比你的預期好一點。

Can you talk about what you're seeing in that space and the expectation as you move into the September quarter?

您能否談談您在該領域看到的情況以及進入 9 月季度時的期望？

September quarter, as you would guess, sees new phone launches, which is the bigger piece of the revenue there.

正如您所猜想的那樣，9 月季度將推出新手機，這是那裡收入的較大部分。

And so we are expecting a continued sequential increase there, per normal.

因此，按照正常情況，我們預計那裡會繼續連續增長。

Again, year-on-year comparisons, which we gave in our prepared remarks for Q2, certainly things were down.

同樣，我們在準備好的第二季度評論中給出了同比比較，當然情況有所下降。

Q3 should see something returning to very similar levels to last year.

第三季度應該會看到與去年非常相似的水平。

Okay.

好的。

And just to follow up.

只是為了跟進。

You mentioned in your prepared remarks silicon carbide.

您在準備好的評論中提到了碳化矽。

Just a couple questions on that.

只是幾個問題。

Can you talk about when that becomes material in terms of revenue, I guess the expectation on both the second half of this year and into '19?

您能否談談這在收入方面何時變得重要，我猜對今年下半年和 19 年的預期？

And if you could talk a bit about what you expect to differentiate on in the silicon carbide space.

如果你能談談你期望在碳化矽領域與眾不同的地方。

So basically there it is performance-based.

所以基本上它是基於性能的。

In most of our sales, we expect to happen in modules where we get to match performance with our full portfolio, and so therefore we do think there is going to be a competitive edge on total efficiency in the marketplace.

在我們的大部分銷售中，我們希望在我們能夠將性能與我們的完整產品組合相匹配的模塊中發生，因此我們確實認為在市場上的總效率方面將具有競爭優勢。

That growth, again, starts here in the second half, but we expect that it will accelerate significantly in 2019; and by second half of next year, provide significant revenues.

這種增長再次從下半年開始，但我們預計它將在 2019 年顯著加速；到明年下半年，提供可觀的收入。

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。

You talked about capacity constraints and that's kind of plagued the industry and a lot of other competitors as well.

你談到了產能限制，這有點困擾行業和許多其他競爭對手。

I was wondering if you could kind of explain why that is happening, did the entire industry underestimate the level of demand that's happening?

我想知道您能否解釋一下為什麼會發生這種情況，整個行業是否低估了正在發生的需求水平？

Any thoughts on the capacity-constrained environment?

對容量受限的環境有什麼想法嗎？

And what are the reasons?

原因是什麼？

Well, there's several levels of reasons for constraints.

嗯，限制的原因有幾個層次。

I think the raw material piece of it, frankly, is underinvestment that occurred in the -- both silicon substrate markets and lead frame markets for the last number of years, again, under-calling, if you will, the future demands.

坦率地說，我認為它的原材料部分是過去幾年在矽基板市場和引線框架市場上發生的投資不足，如果你願意的話，再次低估未來的需求。

And so that's creating a lot of pressure on the supply chain side.

所以這給供應鏈方面造成了很大的壓力。

And then frankly, the -- on the product side, if you can get through that, some of the disruptive applications have taken off much, much faster than people expected.

然後坦率地說，在產品方面，如果你能做到這一點，一些顛覆性應用程序的起飛速度比人們預期的要快得多。

So that combination has provided quite a few constraints in the market.

因此，這種組合在市場上提供了相當多的限制。

And Bernard, you had mentioned that you believe you'll be able to reach your target model this year.

伯納德，您曾提到您相信今年能夠達到您的目標模型。

Were you talking about with respect to gross margins?

你說的是毛利率嗎？

I believe your gross margin target was 40% achieved in 2020...

我相信你的毛利率目標是在 2020 年實現 40%...

We are basically saying we are going to make good and nice progress towards it.

我們基本上是在說我們將在這方面取得良好的進展。

The target model is still out for 2020 and we are working and doing some good progress towards it but do not expect that we'll meet it in 2018.

目標模型在 2020 年仍然存在，我們正在努力並取得一些良好進展，但不要指望我們會在 2018 年實現它。

Our next question comes from of [Kristin Baja] of Nomura Instinet.

我們的下一個問題來自 Nomura Instinet 的 [Kristin Baja]。

In the prepared comments, you mentioned that industrial is expected to be down sequentially in the third quarter, albeit up meaningfully year-over-year.

在準備好的評論中，您提到工業預計將在第三季度環比下降，儘管同比增長顯著。

Is this just the effects of normal or typical seasonality, or is there something else in play here?

這只是正常或典型季節性的影響，還是這裡有其他原因？

It's mostly seasonality.

這主要是季節性的。

Okay, great.

好，太棒了。

And then keeping on that kind of track of seasonality, we've heard from some other peers that typical seasonality has been almost altered over the past couple years.

然後保持這種季節性跟踪，我們從其他一些同行那裡聽說，在過去幾年中，典型的季節性幾乎發生了變化。

Have you seen that in your businesses as well?

您是否也在您的企業中看到了這一點？

Or do you -- are you still sticking to generally historical trend?

或者你——你還在堅持一般的歷史趨勢嗎？

I think the -- our company, specifically with the M&A that we've done, we've had a change in profile, but directionally that seasonality is still correct.

我認為 - 我們的公司，特別是我們已經完成的併購，我們的形象發生了變化，但在方向上，季節性仍然是正確的。

Yes.

是的。

I would say that -- in general terms the Q2 to Q3 has moderated a little bit and it's now around 4% -- 3% to 4%.

我想說——總的來說，第二季度到第三季度有所放緩，現在大約是 4%——3% 到 4%。

Used to be more because you had more computing and consumer and communications in the number, and now with automotive and industrial, it's a little bit more front-loaded but hasn't changed materially.

過去更多，因為您在數量上擁有更多的計算、消費者和通信，而現在對於汽車和工業來說，它的前端負載更多一些，但並沒有發生實質性變化。

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

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

Keith, I wanted to follow up on one of the Q&A comments.

基思，我想跟進其中的問答評論。

I think it was in response to Ross' question about CapEx.

我認為這是對羅斯關於資本支出的問題的回應。

I think you mentioned that some of the investment that is being made now is because there's a view that high single-digit growth could persist into 2019.

我想你提到現在正在進行的一些投資是因為有人認為高個位數的增長可能會持續到 2019 年。

I wanted to understand better where that visibility might exist across product groups.

我想更好地了解跨產品組可能存在的可見性。

And is that really related to the strategic groups like industrial and auto or the business overall?

這真的與工業和汽車等戰略集團或整體業務有關嗎？

Yes, it's driven mainly by industrial and auto and the design wins that we have secured there and have strong visibility on.

是的，它主要是由工業和汽車驅動的，我們在那裡獲得的設計勝利並具有很強的知名度。

The server market, also same situation, where we know what those design wins are next year.

服務器市場也是同樣的情況，我們知道明年這些設計會贏得什麼。

And then in addition to that, I mentioned in the last call we're getting long-term agreements for supply.

除此之外，我在上次電話會議中提到我們正在達成長期供應協議。

And those are adding up quickly.

這些正在迅速增加。

So we have much more confidence than we normally would have looking at the year ahead.

因此，我們對未來一年的信心比通常情況下要大得多。

And then the follow-up is for Bernard.

然後是伯納德的後續行動。

Just a housekeeping item, Bernard.

只是一個家務用品，伯納德。

Tax rates, should we still expect 10% for this year and the next couple years?

稅率，我們還應該期待今年和未來幾年的 10% 嗎？

Or is it coming in lower than that?

還是低於這個值？

I expected for 2018 to be lower, and that's what I said in the prepared remarks.

我預計 2018 年會更低，這就是我在準備好的評論中所說的。

And for the '19 and '20, 10% is still a good number.

對於 '19 和 '20，10% 仍然是一個不錯的數字。

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

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

So I know you guys, in your prepared remarks, said you didn't think there were any effects from tariff fears out there, but one of your competitors actually mentioned that in the white box market -- you guys are obviously doing pretty well there, but for them, they said that customers were reluctant to hold finished goods inventory.

所以我知道你們在準備好的評論中說你們認為關稅恐懼沒有任何影響，但你們的一個競爭對手實際上提到了在白盒市場上——你們顯然在那裡做得很好，但對他們來說，他們說客戶不願意持有成品庫存。

Perhaps you could talk about that.

也許你可以談談那個。

Are you seeing any sort of effects at all from that?

您是否從中看到了任何影響？

And just talk about maybe tariff fears and how you view that more broadly.

只是談談對關稅的擔憂以及你如何更廣泛地看待這一點。

No, we have not seen that in any of the businesses yet.

不，我們還沒有在任何業務中看到這一點。

The white goods piece, you may recall the tariffs got implemented on the consumer white goods some time ago, several quarters ago.

白色家電這塊，你可能還記得前段時間，幾個季度前對消費性白色家電實施的關稅。

And so I'm not sure how that plays out.

所以我不確定結果如何。

And in the air conditioner market, we have not seen any of those concerns, so quite frankly, we've seen no lack of demand and no hesitation from customers ordering to their run rate.

而在空調市場，我們沒有看到任何這些擔憂，所以坦率地說，我們看到客戶訂購到他們的運行率並沒有缺乏需求和猶豫。

Great.

偉大的。

And one for Bernard.

還有一個給伯納德。

So I noticed that you changed your range, you narrowed it for a gross margin guidance.

所以我注意到你改變了你的範圍，你縮小了它的毛利率指導。

And was just wondering what gives you more confidence there.

只是想知道是什麼讓你在那裡更有信心。

And should we expect that narrower range moving forward?

我們應該期待更窄的範圍向前發展嗎？

No.

不。

We were just looking at our historical patterns, and we feel confident that we don't need as wide as a range for guiding purposes.

我們只是在查看我們的歷史模式，我們相信我們不需要那麼寬的範圍來指導目的。

Historical performance tells us that we should be able to be within that range.

歷史表現告訴我們，我們應該能夠在那個範圍內。

Our next question comes from Kevin Cassidy of Stifel.

我們的下一個問題來自 Stifel 的 Kevin Cassidy。

Keith, you had mentioned in your prepared remarks in computing, a higher power supply -- interest in higher-voltage power supply.

基思，你在準備好的計算評論中提到了更高的電源——對更高電壓電源的興趣。

Are you seeing any trend at all?

你有看到任何趨勢嗎？

I know Google has mentioned it, a 48 volt coming into the data center for better power efficiency.

我知道谷歌已經提到過，為了提高電源效率，將 48 伏電壓輸入數據中心。

Are you seeing...

你在看嗎...

Yes, yes, definitely planning around that, not a lot of revenue today.

是的，是的，絕對是圍繞這個計劃，今天沒有很多收入。

Okay.

好的。

Would the same products that you're developing for automotive be able to play into that?

您正在為汽車開發的相同產品是否能夠發揮作用？

Same technologies.

相同的技術。

The products are actually different, but the technologies are the same.

產品實際上是不同的，但技術是相同的。

Okay, if I could ask one other.

好吧，如果我可以問另一個。

On the internal wafer, I think, last quarter, you had said it was slightly -- or was less than 50% of your total usage.

在內部晶圓上，我認為，上個季度，你曾說過它略微——或者不到你總使用量的 50%。

What's the target?

目標是什麼？

How high of a percentage of your internal use do you expect to have internal wafers?

您預計內部使用的百分比有多高？

We're expecting to bring it up to about that 50% point.

我們預計將其提高到 50% 左右。

And that's kind of our target unless the industry continues to experience difficulties.

除非該行業繼續遇到困難，否則這就是我們的目標。

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。

My first question's a follow-up on that same topic about the internal raw wafer supply.

我的第一個問題是關於內部原始晶圓供應的同一主題的後續問題。

Are you assuming any benefit from increased internal supply in your 3Q '18 guidance?

您是否在 3Q '18 指南中假設增加內部供應會帶來任何好處？

And when would you expect to have that full 50% from in-house wafers?

你預計什麼時候可以從內部晶圓中獲得全部 50% 的份額？

Yes, the equipment doesn't really get up and running until the third quarter, which means those substrates won't fall through our P&L until the fourth, so we should start seeing benefits in the fourth quarter and full benefit by Q1.

是的，設備要到第三季度才能真正啟動並運行，這意味著這些基材要到第四季度才會通過我們的損益表，因此我們應該在第四季度開始看到收益，並在第一季度開始看到全部收益。

All right, that's helpful.

好吧，這很有幫助。

And a follow-up question on the industrial market.

還有一個關於工業市場的後續問題。

In the prepared comments, you mentioned share gains.

在準備好的評論中，您提到了股票收益。

And of the strong year-over-year growth, do you have a sense about how much is just product cycles and just end demand?

在強勁的同比增長中，您是否知道產品週期和終端需求有多少？

And then how much of it's coming from that share gain that you spoke to?

然後有多少來自你所說的份額收益？

You can look at the -- I guess, the industry numbers to figure out what the year-over-year market gains would be.

您可以查看 - 我猜是行業數據，以了解同比市場收益是多少。

And all the delta would be from share gains.

所有的增量都將來自股票收益。

So I don't know if it's half and half, but it's something in that order of magnitude.

所以我不知道它是不是一半一半，但它是那個數量級的東西。

Our next question comes from Harlan Sur of JPMorgan.

我們的下一個問題來自摩根大通的 Harlan Sur。

ISG was down about 2% year-over-year, when your industrial business combined is growing about 12%.

ISG 同比下降約 2%，而您的工業業務合計增長約 12%。

I know that you guys have talked about some of the headwinds as you move out of some of the more commodity segments of the market.

我知道你們已經談到了一些不利因素，因為你們離開了市場中一些更商品化的領域。

That might be hiding some of the growth of the focus areas.

這可能隱藏了一些重點領域的增長。

I know you guys had previously talked about auto image sensor market growing about 20% kind of on a longer-term CAGR.

我知道你們之前曾談到汽車圖像傳感器市場的長期復合年增長率約為 20%。

Is that how fast auto ISG revs are kind of trending right now?

這就是現在的汽車 ISG 轉速有多快的趨勢嗎？

Yes, it is.

是的。

They're better than 20% growth in the automotive sector, and that was offset by getting out of the consumer and handset markets.

它們在汽車行業的增長率超過 20%，而這被退出消費者和手機市場所抵消。

So it is somewhat masked at the total level, but we're getting the performance from automotive we expect.

所以它在總體水平上有些掩蓋，但我們正在從我們期望的汽車中獲得性能。

Great.

偉大的。

And consumer has been a bright spot, right?

而消費一直是亮點，對吧？

It's been healthy, driving high single digits year-over-year growth actually for the last few quarters.

它一直很健康，實際上在過去幾個季度推動了高個位數的同比增長。

And this is versus your long-term view of kind of mid- to high single-digit year-over-year declines.

這與您對中高個位數同比下降的長期看法相反。

Help us understand what's been driving the strong year-over-year growth rates.

幫助我們了解是什麼推動了強勁的同比增長率。

And do the trends here in your design win pipeline suggest a better longer-term outlook versus what you guys put out at your last Analyst Day?

與你們在上一個分析師日發布的內容相比，你們設計獲勝管道中的趨勢是否表明了更好的長期前景？

Yes.

是的。

So most of it's been driven by better-than-expected white goods, and that market has been good for us.

因此，其中大部分是由好於預期的白色家電推動的，這個市場對我們有利。

And it looks like people there are going for much more efficient solutions on a percentage of their total bills than they used to be doing.

看起來人們正在尋求比以往更有效的解決方案，以減少他們總賬單的百分比。

So we're getting good traction on our modules there.

所以我們在那裡的模塊上獲得了很好的牽引力。

Our next question comes from Harsh Kumar of Piper Jaffray.

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

I had 2 quick questions.

我有 2 個簡單的問題。

Your industrial business sort of exploded up to 14% growth year-over-year, coming down seasonally in 3Q.

您的工業業務同比增長 14%，在第三季度出現季節性下降。

I guess, if you don't mind giving us some insight into what's driving that.

我想，如果你不介意讓我們了解是什麼推動了這一點。

What drove that 14% growth?

是什麼推動了 14% 的增長？

And if there is a delta part that's falling for you in 3Q guide.

如果在 3Q 指南中有對您不利的增量部分。

And then I have a follow-up.

然後我有一個跟進。

Yes.

是的。

So it was -- that year-on-year [stub] was driven by many factors, mostly power products and being used for increased efficiency across the entire industrial market.

所以它是 - 同比 [stub] 是由許多因素驅動的，主要是電力產品，並被用於提高整個工業市場的效率。

One of the areas that's caused some flattening is a slowing down in the solar market, particularly in China, as some of those subsidies have been relaxed.

導致一些扁平化的領域之一是太陽能市場放緩，特別是在中國，因為其中一些補貼已經放鬆。

And so that's creating a little bit of the down, but in general the market remains robust.

所以這造成了一些下跌，但總的來說市場仍然強勁。

And we expect again very strong growth on a yearly basis.

我們預計每年將再次出現非常強勁的增長。

And then for my follow-up.

然後是我的後續行動。

A couple of the companies that have reported have basically given us some idea of how much of their product is manufactured in China front end, back end.

幾家報告的公司基本上讓我們了解了他們的產品有多少是在中國的前端和後端製造的。

Is there some way for us to think about or some color you can provide us to help us think about that number?

有什麼方法可以讓我們思考，或者您可以提供一些顏色來幫助我們思考這個數字嗎？

So we do assembly test operations in China.

所以我們在中國做組裝測試業務。

And I don't have specific numbers with me today, but it's probably in the 1/3 range on a dollar value of our total.

而且我今天沒有具體的數字，但它可能在我們總價值的 1/3 範圍內。

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。

Keith, just a follow-up question on lead times, just the comment around them normalizing quickly as capacity comes online.

基思，只是關於交貨時間的後續問題，只是隨著產能上線，圍繞它們的評論迅速正常化。

Do you think that's a Q3 or Q4 event in terms of lead times coming in?

就交貨時間而言，您認為這是 Q3 還是 Q4 事件？

No.

不。

I think the expansion will start slowing.

我認為擴張將開始放緩。

What happened to us and, I think, has happened across the industry, is that lead times for equipment expanded quite rapidly.

發生在我們身上的事情，我認為，在整個行業都發生了，設備的交貨時間增長得非常快。

So things you ordered last year are just now coming in, in the third and fourth quarter.

所以你去年訂購的東西現在才到貨，在第三和第四季度。

What I'm expecting is that, that growth rate will be offset by equipment actually arriving.

我所期待的是，這種增長率將被實際到貨的設備所抵消。

And so I'm looking for a stop to the growth in the lead times in the third quarter, with some opportunity for reduction towards Q4, Q1.

因此，我正在尋找第三季度交貨時間增長的停止，並有機會在第四季度和第一季度減少。

Got it.

知道了。

And then just a question on the computing market, just kind of resurgence of growth there.

然後只是關於計算市場的一個問題，只是那裡的增長復甦。

And you talked about kind of data center.

你談到了一種數據中心。

Any context in terms of legacy Fairchild portfolio in terms of contribution there and as you do things going forward?

就現有的 Fairchild 產品組合的貢獻以及您今後的工作而言，有任何背景嗎？

Well, a significant growth in the server arena is really from the legacy -- or not legacy but from the Fairchild acquisition.

好吧，服務器領域的顯著增長確實來自遺留問題——或者不是遺留問題，而是來自 Fairchild 的收購。

Those power stage that they developed are what's growing the fastest in servers right now.

他們開發的那些功率級是目前服務器中增長最快的。

(Operator Instructions) Our next question comes from John Pitzer of Crédit Suisse.

（操作員說明）我們的下一個問題來自瑞士信貸的 John Pitzer。

Keith, someone asked about the industrial guidance in Q3 relative to seasonal.

基思，有人詢問第三季度相對於季節性的行業指導。

I guess I'll ask the same question on the auto, which I think is the only end market you didn't reference relative to seasonal.

我想我會在汽車上問同樣的問題，我認為這是你沒有提到的唯一與季節性相關的終端市場。

I think, 2 out of the last 4 years, it's been down.

我認為，過去 4 年中有 2 年下降了。

2 out of the last 4 years, it's been up.

在過去的 4 年中，有 2 年一直在上漲。

You're guiding up.

你在引導。

How are you [viewing] that seasonal versus content growth, versus other drivers for September?

您如何看待 9 月份的季節性與內容增長以及其他驅動因素？

Yes, for us it's all content growth because most of the automotive makers take their lines down and convert them for the new models in Q3, which normally causes the disruption in the down part.

是的，對我們來說，這都是內容的增長，因為大多數汽車製造商都將他們的產品線下線並在第三季度將它們轉換為新車型，這通常會導致下行部分的中斷。

And this year, the content piece has overwhelmed that.

而今年，內容已經壓倒了這一點。

That's helpful.

這很有幫助。

And then Bernard, I just want to go back to the free cash flow question asked earlier.

然後伯納德，我只想回到之前提出的自由現金流問題。

The full year guide of $800 million just suggests that the second half is going to be up over 100% over the first half.

8 億美元的全年指導僅表明下半年將比上半年增長 100% 以上。

And I know there is some seasonality to your free cash flow.

我知道你的自由現金流有一些季節性。

And that you should get some tailwinds from CapEx coming down in the back half of the year versus what looks like a peak in the June quarter.

而且你應該從今年下半年的資本支出下降中獲得一些順風，而不是 6 月季度的峰值。

But are there any other one-offs we should be thinking about?

但是我們還應該考慮其他一次性的嗎？

And just given the real acceleration in free cash flow in the back half of the year, how are you guys thinking about use of cash in Q3 and Q4?

剛剛考慮到今年下半年自由現金流的真正加速，你們如何看待第三季度和第四季度的現金使用？

So indeed there is no additional things, except just the P&L generated as well as a moderating working capital as well as CapEx that will generate -- that will help us generate the $800 million.

所以確實沒有其他東西，除了產生的損益表以及適度的營運資金以及將產生的資本支出——這將幫助我們產生 8 億美元。

The use of free cash flow, we do have our share buyback program.

利用自由現金流，我們確實有我們的股票回購計劃。

We did $40 million in Q2.

我們在第二季度做了 4000 萬美元。

And we did pay $80 million of debt.

我們確實支付了 8000 萬美元的債務。

We will continue along the same path with similar approach.

我們將繼續沿著同樣的道路，採用類似的方法。

Thank you.

謝謝你。

And ladies and gentlemen, this does conclude our question-and-answer session.

女士們，先生們，這確實結束了我們的問答環節。

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

我現在想將電話轉回給 Parag Agarwal 以徵求任何進一步的意見。

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 conferences during the third quarter.

我們期待在第三季度的各種會議上見到您。

Thank you, and bye-bye.

謝謝你，再見。

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.

每個人都有美好的一天。